Lazydays Holdings(GORV) - 2024 Q3 - Quarterly Report

Financial Performance - Total revenues for the three months ended September 30, 2024, were $213.465 million, a decrease of 24$280.682 million for the same period in 2023[16] - Gross profit for the three months ended September 30, 2024, was $45.313 million, down from$54.441 million in the same period last year, representing a decline of 17%[16] - Net loss for the three months ended September 30, 2024, was $17.665 million, compared to a net loss of$5.586 million for the same period in 2023, indicating a significant increase in losses[16] - Total revenues for the nine months ended September 30, 2024, were $722,745, a decrease of 18.3$884,718 in 2023[153] - New vehicle retail revenue for the nine months was $418,315, down 21.4$532,397 in the previous year[153] - Net loss for the nine months ended September 30, 2024, was $83,866, significantly higher than the net loss of$2,301 for the same period in 2023[26] Assets and Liabilities - Total assets decreased to $735.946 million as of September 30, 2024, down from$937.739 million at the end of 2023, reflecting a reduction of approximately 21%[10] - Total liabilities decreased to $605.018 million as of September 30, 2024, down from$724.549 million at the end of 2023, a reduction of about 16%[10] - Current liabilities totaled $392.018 million as of September 30, 2024, compared to$499.977 million at the end of 2023, showing a decrease of approximately 22%[10] - The company’s retained earnings showed a deficit of $37.713 million as of September 30, 2024, compared to retained earnings of$48.137 million at the end of 2023[10] Cash Flow and Expenses - The company’s cash position decreased to $13.536 million as of September 30, 2024, down from$58.085 million at the end of 2023, indicating a decline of about 77%[10] - Cash provided by operating activities for the nine months ended September 30, 2024, was $98,567, compared to$40,434 for the same period in 2023, indicating improved operational cash flow[26] - Cash paid for interest during the nine months ended September 30, 2024, was $24,783, a substantial increase from$7,402 in 2023, indicating higher borrowing costs[28] - SG&A expenses decreased by $2.4 million, or 5.1$145,416 for the nine months ended September 30, 2024, compared to $18,427 in 2023, suggesting potential overstocking or increased production[26] - Total inventory value as of September 30, 2024, was$310.7 million, down from $456.1 million as of December 31, 2023, reflecting a decrease of approximately 31.9$122,291 from $172,898 year-over-year[150] - Pre-owned vehicle retail revenue declined by 19.8$60,177 compared to $75,059 in the previous year[150] Debt and Financing - As of September 30, 2024, Lazydays had$316.6 million outstanding on the Floor Plan Credit Facility at an interest rate of 7.43% and $41.0 million on the Revolving Credit Facility at an interest rate of 8.75$400 million Floor Plan Credit Facility and a 41 million Revolving Credit Facility, maturing on February 21, 2027[53] - The company was not in compliance with certain financial covenants under the M&T Credit Agreement during July, August, and September 2024, leading to temporary waiver agreements[57] - The outstanding balance of the Revolving Credit Facility is 31.0 million after the repayment of a portion of the principal[135] Stock and Equity - The weighted average shares used for EPS calculations were 14,439,861 for the three months ended September 30, 2024, compared to 14,263,367 for the same period in 2023[16] - As of September 30, 2024, total stockholders' equity was $68,565, a decrease from$87,998 as of June 30, 2024, reflecting a net loss of $17,665 for the quarter[18] - The company granted a performance-based stock option for 1,500,000 shares with a strike price of$2.00 per share in September 2024[110] - The Company raised gross proceeds of $30 million from the sale of PIPE Shares at a price of$1.03 per share[125] Taxation - Income tax benefit for the three months ended September 30, 2024, was $381,000, down from$1,805,000 in 2023, resulting in a variance of $(1,424,000)[206] - The effective tax rate for the three months ended September 30, 2024, was (2.1)$(16,640,000), a decrease from $642,000 in 2023, resulting in a variance of$(17,282,000)[206] Business Operations - As of September 30, 2024, Lazydays Holdings, Inc. operated 23 RV dealerships across various states, including Arizona, Colorado, and Florida, each with 3 locations[31][32] - The Company operates 23 dealerships in 14 states, with a significant portion of new RV units sold annually in the U.S.[144] - The Company employs approximately 1,300 people across its dealership locations, providing extensive RV expertise to customers[145] - The Company utilizes customer relationship management tools and analytics to engage and market to its customer database[146]