Lazydays (US:LAZY)2022-08-08 20:58Financial Performance - Total revenues for Q2 2022 reached $373.6 million, a 15.7% increase from $322.8 million in Q2 2021[20] - Net income for Q2 2022 was $31.8 million, compared to $25.3 million in Q2 2021, representing a 25.5% year-over-year growth[20] - Net income for the six months ended June 30, 2022, was $60,128,000, compared to $34,153,000 for the same period in 2021, representing a 76.3% increase[28] - Total revenue for the six months ended June 30, 2022, was $749,713,000, up from $593,784,000 in 2021, indicating a growth of 26.3%[38] - Revenue for the three months ended June 30, 2022, was $373,552, compared to $369,586 for the same period in 2021, representing a growth of 0.3%[83] - Net income for the six months ended June 30, 2022, was $60,128, an increase of 36.1% from $44,178 in the same period of 2021[83] Revenue Breakdown - New vehicle revenue for the six months ended June 30, 2022, reached $436,622,000, compared to $368,971,000 in 2021, reflecting an increase of 18.4%[38] - Pre-owned vehicle revenue increased to $241,158,000 for the six months ended June 30, 2022, from $166,123,000 in 2021, marking a growth of 45.0%[38] - Revenue from new and pre-owned vehicle sales rose by approximately $47.1 million, or 16.2%, to $337.3 million from $290.2 million for the three months ended June 30, 2022 and 2021, respectively[194] - Revenue from new vehicle sales increased by approximately $67.6 million, or 18.3%, to $436.6 million for the six months ended June 30, 2022, compared to $369.0 million for the same period in 2021[211] - Revenue from pre-owned vehicle sales increased by approximately $75.0 million, or 45.2%, to $241.2 million for the six months ended June 30, 2022, compared to $166.1 million for the same period in 2021[212] - Other revenue, which includes sales of parts, accessories, finance and insurance revenues, increased by approximately $13.2 million, or 22.5%, to $71.9 million for the six months ended June 30, 2022, compared to $58.7 million for the same period in 2021[213] Assets and Liabilities - The company reported a total asset increase to $794.7 million as of June 30, 2022, up from $698.1 million at the end of 2021, reflecting a 13.8% growth[15] - Total liabilities increased to $509.9 million, up from $437.0 million, indicating a 16.6% rise[18] - The company’s retained earnings grew to $156.9 million, compared to $96.8 million at the end of 2021, reflecting a 62.1% increase[18] - Cash and cash equivalents increased to $105.4 million from $98.1 million, marking a 7.3% rise[15] - Inventory levels rose to $321.7 million, a 32.4% increase from $242.9 million at the end of 2021[15] Shareholder Actions - The company repurchased 1,086,797 shares of treasury stock during the first half of 2022, costing $19.2 million[23] - The company authorized a stock repurchase of up to $45 million, with $20 million available for repurchases through July 31, 2022[172] - The company repurchased 1,166,609 shares of common stock for $18,991 during the three months ended June 30, 2022, and 2,253,406 shares for $38,165 during the six months ended June 30, 2022[137] Operating Expenses - SG&A expenses increased by $16.7 million, or 37.3%, to $61.5 million for the three months ended June 30, 2022, primarily due to overhead associated with new dealerships and increased marketing expenses[203] - Interest expense increased by approximately $1.5 million to $3.4 million for the three months ended June 30, 2022, due to higher floorplan balances and interest rates[204] Market and Operational Insights - The company operates the world's largest RV dealership, with on-site inventory located on 126 acres outside Tampa, Florida[163] - The company employs approximately 1,500 people across its seventeen dealership and service locations[164] - The company experienced significant declines in sales due to COVID-19 but saw improvements beginning in May 2020 as consumer demand for outdoor activities increased[177] Acquisitions and Investments - The company completed the acquisition of Dave's Claremore RV on July 23, 2022, with the purchase price including cash payment and assumption of floorplan debt[73] - The total consideration for the acquisition of BYRV and other entities was $77,321, with net assets acquired valued at $44,619, resulting in goodwill of $32,702[79] Stock and Equity - The Series A Preferred Stock issued during the PIPE Investment amounted to $60,000, with 600,000 shares issued[123] - The initial dividend rate on the Series A Preferred Stock is set at 8% per annum, which can increase to 11% if certain debt-to-EBITDA ratios are exceeded[125] - The Company has issued five-year warrants to purchase 596,273 shares of common stock at an exercise price of $11.50 per share in conjunction with the Series A Preferred Stock[129] Legal and Regulatory Matters - The Company anticipates that the ultimate resolution of ongoing legal proceedings will not have a material adverse effect on its business or financial condition[122] - The company adopted ASU 2016-13 on January 1, 2021, which did not materially impact its financial statements[68] - The company is evaluating the impact of ASU 2021-08, effective after December 15, 2022, on its consolidated financial statements[67]