LAZYDAYS REPORTS FIRST QUARTER 2024 RESULTS

TAMPA, Fla., May 15, 2024 — Lazydays (NasdaqCM: GORV) today reports results for the first quarter ended March 31, 2024.

John North, Chief Executive Officer, commented, “As we discussed in March, we expected our results for the first quarter to reflect a focus on both reducing the quantity and improving the health of vehicle inventory on hand. To that end, we made significant progress in these areas and finished the first quarter with approximately 85% of our new inventory model year 2024. However, our expectation to see increasing unit volumes in March and April as we entered the summer selling season did not materialize as we had hoped. We have continued to focus on maintaining our healthy inventory position as model year 2025 units arrive while increasing our efforts to procure more used units to augment our trade-ins and drive additional revenue opportunities. As of today, our new inventory is comprised of more than 90% 2024 and 2025 model year units, and we believe it is among the healthiest in the industry.”

Commenting on 2024, John stated, “Given the current market conditions and the larger than expected losses in the first quarter, for the full year we anticipate a pre-tax loss but both positive EBITDA and adjusted operational cash flow. I want to personally thank our operational team in the field for remaining upbeat and focused on pursuing every opportunity we can identify in the market today. While we are navigating the current economic environment alongside our OEM partners and competing dealers, we strongly believe in the earnings power of our store base and look forward to unlocking its full earnings potential as the industry recovers.”

Total revenue for the first quarter was $270.6 million compared to $295.7 million for the same period in 2023.

Net loss for the first quarter was $22.0 million compared to a net loss of $0.3 million for the same period in 2023. Adjusted net loss, a non-GAAP measure, was $21.4 million compared to adjusted net income of $1.2 million for the same period in 2023. Net loss per diluted share was $1.67 compared to net loss per diluted share of $0.17 for the same period in 2023. Adjusted net loss per diluted share was $1.63 compared to net income per diluted share of $0.00 for the same period in 2023.

Adjusted results for the first quarter of 2024 exclude a net non-core charge of $0.04 per diluted share related to our LIFO adjustment, transaction costs, and severance and transition costs. Adjusted results for the first quarter of 2023 exclude a net non-core charge of $0.17 per diluted share related to the effects of changes in fair value of warrant liabilities, our LIFO adjustment, an impairment charge, acquisition expenses and severance and transition costs.

Balance Sheet Update
Earlier this week, we executed an amendment to our syndicated credit facility providing us with additional covenant flexibility through the first quarter of 2025.

To facilitate the amendment, we agreed to raise an additional $15 million. Following the process outlined below, we negotiated a $15 million increase in the mortgage loan facility we established in December, funded by clients of Coliseum Capital Management. The terms of the incremental advance are substantially similar to the terms of the existing mortgage loan facility and is secured by the inclusion of another dealership facility into the collateral pool. We intend to use $5 million of the proceeds from the advance to pay down a portion of the revolver under our syndicated credit facility, with the remaining $10 million available for general corporate purposes. In connection with the incremental advance, Lazydays issued warrants to clients of Coliseum Capital Management to purchase 2,000,000 shares of common stock at a price of $5.25 per share, subject to certain adjustments.

Our board of directors established a special committee of independent directors and delegated to the special committee authority to evaluate and negotiate financing options as part of the amendment process. The special committee was advised by Richards Layton & Finger, P.A. and Holland & Knight LLP, and also obtained certain external financial market advice. Upon reviewing available alternatives, the special committee unanimously approved the increase to the size of the mortgage loan facility and related warrant issuance.

Kelly Porter, Chief Financial Officer, stated, “We appreciate the continued flexibility from our syndicated lenders, as well as the increased support we received from Coliseum. With cash on hand of $39 million as of today, inclusive of the additional funding provided by Coliseum, and the capacity to generate an estimated $45 million of additional mortgage loan proceeds as we refinance locations at a 75% loan-to-value, we believe we have a strong foundation on which to navigate the current macroeconomic environment.”

Conference Call Information
We have scheduled a conference call at 8:30 AM Eastern Time on Thursday, May 16, 2024 that will also be broadcast live over the internet.

The conference call may be accessed by telephone at (877) 407-8029 / +1 (201) 689-8029. To listen live on our website or for replay, visit https://www.lazydays.com/investor-relations.

About Lazydays
Lazydays has been a prominent player in the RV industry since our inception in 1976, earning a stellar reputation for delivering exceptional RV sales, service, and ownership experiences. Our commitment to excellence has led to enduring relationships with RVers and their families who rely on us for all of their RV needs.

With a strategic approach to rapid expansion, we are growing our network through both acquisitions and new builds. Our wide selection of RV brands from top manufacturers, state-of-the-art service facilities, and an extensive range of accessories and parts ensure that Lazydays is the go-to destination for RV enthusiasts seeking everything they need for their journeys on the road. Whether you’re a seasoned RVer or just starting your adventure, our dedicated team is here to provide outstanding support and guidance, making your RV lifestyle truly extraordinary.

Lazydays is a publicly listed company on the Nasdaq stock exchange under the ticker “GORV.”

Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward looking statements include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as “project,” “outlook,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “may,” “seek,” “would,” “should,” “likely,” “goal,” “strategy,” “future,” “maintain,” “continue,” “remain,” “target” or “will” and similar references to future periods. Examples of forward-looking statements in this press release include, among others, statements regarding:

  • Our efforts to procure more used units;
  • First quarter and full year 2024 results;
  • The earnings power of our store base, and our unlocking of its full earnings potential;
  • Our use of funds from the transaction with Coliseum Capital Management;
  • Our ability to generate additional mortgage loan proceeds; and
  • Our foundation to navigate the current macroeconomic environment.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events that depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements in this press release. The risks and uncertainties that could cause actual results to differ materially from estimated or projected results include, without limitation, future economic and financial conditions (both nationally and locally), changes in customer demand, our relationship with, and the financial and operational stability of, vehicle manufacturers and other suppliers, risks associated with our indebtedness (including available borrowing capacity, compliance with financial covenants and ability to refinance or repay indebtedness on favorable terms), acts of God or other incidents which may adversely impact our operations and financial performance, government regulations, legislation and others set forth throughout “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in “Part I, Item 1A. Risk Factors” of our most recent Annual Report on Form 10-K, and from time to time in our other filings with the SEC. We urge you to carefully consider this information and not place undue reliance on forward-looking statements. We undertake no duty to update our forward-looking statements, including our earnings outlook, which are made as of the date of this release.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures such as EBITDA, adjusted cash flow from operations, adjusted costs applicable to revenue, adjusted net income (loss), adjusted net income (loss) per diluted share, adjusted income (loss) before income taxes, adjusted SG&A, and adjusted income (loss) from operations. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not comparable to similarly titled measures used by other companies. As a result, we review any non-GAAP financial measures in connection with a review of the most directly comparable measures calculated in accordance with GAAP. We caution you not to place undue reliance on such non-GAAP measures, and also to consider them with the most directly comparable GAAP measures. We present cash flows from operations in the following tables, adjusted to include the change in non-trade floor plan debt to improve the visibility of cash flows related to vehicle financing. As required by SEC rules, we have reconciled these measures to the most directly comparable GAAP measures in the attachments to this release. We believe the non-GAAP financial measures we present improve the transparency of our disclosures; provide a meaningful presentation of our results from core business operations, because they exclude items not related to core business operations and other non-cash items; and improve the period-to-period comparability of our results from core business operations. These presentations should not be considered an alternative to GAAP measures.

In addition, we have not reconciled our fiscal year 2024 EBITDA or adjusted operational cash flow expectations. These are provided on a non-GAAP basis and cannot be reconciled to the closest GAAP measures without unreasonable effort because of the unpredictability of the amounts and timing of events affecting the items we exclude from non-GAAP measures.

Contact:
investors@lazydays.com

Results of Operations

Three Months Ended March 31,

Variance

(In thousands except share and per share amounts)

2024

2023

%

Revenues

New vehicle retail

$ 152,691

$ 176,747

(13.6) %

Pre-owned vehicle retail

79,576

84,775

(6.1) %

Vehicle wholesale

6,249

1,708

NM

Finance and insurance

18,329

16,881

8.6 %

Service, body and parts and other

13,741

15,545

(11.6) %

Total revenues

270,586

295,656

(8.5) %

Cost applicable to revenues

New vehicle retail

147,055

153,331

(4.1) %

Pre-owned vehicle retail

70,199

67,528

4.0 %

Vehicle wholesale

8,460

1,721

NM

Finance and insurance

693

693

– %

Service, body and parts and other

6,287

7,181

(12.4) %

LIFO

126

1,311

NM

Total cost applicable to revenues

232,820

231,765

0.5 %

Gross profit

37,766

63,891

(40.9) %

Depreciation and amortization

5,461

4,403

24.0 %

Selling, general, and administrative expenses

48,886

53,532

(8.7) %

(Loss) income from operations

(16,581)

5,956

(378.4) %

Other income (expense):

Floor plan interest expense

(7,676)

(5,531)

38.8 %

Other interest expense

(4,523)

(1,700)

166.1 %

Change in fair value of warrant liabilities

856

(100.0) %

Total other expense, net

(12,199)

(6,375)

91.4 %

Loss before income taxes

(28,780)

(419)

NM

Income tax benefit

6,800

143

NM

Net loss

(21,980)

(276)

NM

Dividends on Series A Convertible Preferred Stock

(1,984)

(1,184)

67.6 %

Net loss and comprehensive loss attributable to common stock
and participating securities

$ (23,964)

$ (1,460)

NM

Loss per share:

Basic

$ (1.67)

$ (0.12)

1,291.7 %

Diluted

$ (1.67)

$ (0.17)

882.4 %

Weighted average shares outstanding:

Basic

14,368,677

11,988,899

Diluted

14,368,677

11,988,899

*NM – not meaningful

Total Results Summary

Three Months Ended March 31,

Variance

2024

2023

%

Gross profit margins

New vehicle retail

3.7 %

13.2 %

(950)

bps

Pre-owned vehicle retail

11.8 %

20.3 %

(850)

bps

Vehicle wholesale

(35.4) %

(0.8) %

NM

bps

Finance and insurance

96.2 %

95.9 %

30

bps

Service, body and parts and other

54.2 %

53.8 %

40

bps

Total gross profit margin

14.0 %

21.6 %

(760)

bps

Total gross profit margin (excluding LIFO)

14.0 %

22.1 %

NM

bps

Retail units sold

New vehicle retail

2,055

1,980

3.8 %

Pre-owned vehicle retail

1,466

1,304

12.4 %

Total retail units sold

3,521

3,284

7.2 %

Average selling price per retail unit

New vehicle retail

$ 74,263

$ 89,266

(16.8) %

Pre-owned vehicle retail

54,281

65,012

(16.5) %

Average gross profit per retail unit (excluding LIFO)

New vehicle retail

$ 2,704

$ 11,826

(77.1) %

Pre-owned vehicle retail

6,396

13,227

(51.6) %

Finance and insurance

4,919

4,929

(0.2) %

Revenue mix

New vehicle retail

56.4 %

59.8 %

Pre-owned vehicle retail

29.4 %

28.7 %

Vehicle wholesale

2.3 %

0.6 %

Finance and insurance

6.8 %

5.7 %

Service, body and parts and other

5.1 %

5.3 %

100.0 %

100.0 %

Gross profit mix

New vehicle retail

14.9 %

36.6 %

Pre-owned vehicle retail

24.8 %

27.0 %

Vehicle wholesale

(5.9) %

– %

Finance and insurance

46.7 %

25.3 %

Service, body and parts and other

19.7 %

13.1 %

LIFO

(0.3) %

(2.1) %

100.0 %

100.0 %

Other Metrics

Adjusted

As Reported

Three Months Ended March 31,

Three Months Ended March 31,

2024

2023

2024

2023

SG&A as a % of revenue

17.8 %

17.6 %

18.1 %

18.1 %

SG&A as % of gross profit, excluding LIFO

127.6 %

79.7 %

129.3 %

82.1 %

(Loss) income from operations as a % of revenue

(5.8) %

3.0 %

(6.1) %

2.0 %

(Loss) income from operations as a % of gross profit,
excluding LIFO

(41.8) %

13.5 %

(43.9) %

9.1 %

(Loss) income before income taxes as % of revenue

(10.3) %

0.5 %

(10.6) %

NM

Net (loss) income as a % of revenue

(7.9) %

0.4 %

(10.6) %

NM

*NM – not meaningful

Other Highlights

March 31, 2024

December 31, 2023

Store Count

Dealerships

25

24

Days Supply*

New vehicle inventory

195

380

Pre-owned vehicle inventory

64

132

*Days supply calculated based on current inventory levels and a 90-day historical average cost of sales level.

Financial Covenants

Requirement

March 31, 2024

Current ratio (excluding LIFO reserve as of March 31, 2024)

1.05

1.07

Minimum liquidity

30,000,000

39,350,000

Same-Store Results Summary

Three Months Ended March 31,

Variance

($ in thousands except per vehicle data)

2024

2023

%

Revenues

New vehicle retail

$ 130,744

$ 167,966

(22.2) %

Pre-owned vehicle retail

66,715

81,961

(18.6) %

Vehicle wholesale

5,046

1,708

NM

Finance and insurance

15,221

16,129

(5.6) %

Service, body and parts and other

11,866

14,950

(20.6) %

Total revenues

229,592

282,714

(18.8) %

Gross profit

New vehicle retail

4,816

22,336

(78.4) %

Pre-owned vehicle retail

7,729

16,672

(53.6) %

Vehicle wholesale

(1,526)

(13)

NM

Finance and insurance

14,615

15,466

(5.5) %

Service, body and parts and other

6,511

8,032

(18.9) %

LIFO

(126)

(1,311)

NM

Total gross profit

32,019

61,182

(47.7) %

Gross profit margins

New vehicle retail

3.7 %

13.3 %

(960)

bps

Pre-owned vehicle retail

11.6 %

20.3 %

(870)

bps

Vehicle wholesale

(30.2) %

(0.8) %

NM

bps

Finance and insurance

96.0 %

95.9 %

10

bps

Service, body and parts and other

54.9 %

53.7 %

120

bps

Total gross profit margin

13.9 %

21.6 %

(770)

bps

Total gross profit margin (excluding LIFO)

14.0 %

22.1 %

NM

bps

Retail units sold

New vehicle retail

1,636

1,841

(11.1) %

Pre-owned vehicle retail

1,190

1,248

(4.6) %

Total retail units sold

2,826

3,089

(8.5) %

Average selling price per retail unit

New vehicle retail

$ 79,917

$ 91,236

(12.4) %

Pre-owned vehicle retail

56,063

65,674

(14.6) %

Average gross profit per retail unit (excluding LIFO)

New vehicle retail

$ 2,944

$ 12,132

(75.7) %

Pre-owned vehicle retail

6,495

13,359

(51.4) %

Finance and insurance

5,172

5,007

3.3 %

Condensed Consolidated Balance Sheets

(In thousands)

March 31, 2024

December 31, 2023

Current assets

Cash

39,350

58,085

Receivables, net of allowance for doubtful accounts

27,244

22,694

Inventories

346,645

456,087

Income tax receivable

9,031

7,416

Prepaid expenses and other

1,421

2,614

Total current assets

423,691

546,896

Long-term assets

Property and equipment, net

271,273

265,726

Operating lease assets

24,949

26,377

Intangible assets, net

78,276

80,546

Other assets

3,082

2,750

Deferred income tax asset

20,476

15,444

Total assets

$ 821,747

$ 937,739

Current liabilities

Floor plan notes payable

357,832

446,783

Revolving line of credit, current portion

10,000

Other current liabilities

50,145

53,194

Total current liabilities

417,977

499,977

Long-term liabilities

Financing liability, non-current portion, net

90,722

91,401

Revolving line of credit, non-current portion

39,500

49,500

Long-term debt, non-current portion, net

27,860

28,075

Related party debt, non-current portion, net

32,917

33,354

Other long-term liabilities

21,052

22,242

Total liabilities

630,028

724,549

Series A Convertible Preferred Stock

58,177

56,193

Stockholders’ Equity

133,542

156,997

Total liabilities and stockholders’ equity

$ 821,747

$ 937,739

Condensed Consolidated Statements of Cash Flows

Three Months Ended March 31,

(In thousands)

2024

2023

Operating Activities

Net loss

$ (21,980)

$ (276)

Adjustments to reconcile net loss to net cash provided by (used in) operating
activities:

Stock-based compensation

509

797

Bad debt expense

58

7

Depreciation and amortization of property and equipment

3,189

2,570

Amortization of intangible assets

2,271

1,833

Amortization of debt discount

74

91

Non-cash operating lease (benefit) expense

(30)

22

Loss on sale of property and equipment

29

Deferred income taxes

(5,032)

Change in fair value of warrant liabilities

(856)

Impairment charges

538

Changes in operating assets and liabilities:

Receivables

(4,608)

(3,359)

Inventories

109,442

(33,650)

Prepaid expenses and other

1,193

(2,766)

Income tax receivable/payable

(1,612)

(146)

Other assets

(333)

(603)

Accounts payable, accrued expenses and other current liabilities

(2,930)

6,966

Total adjustments

102,220

(28,556)

Net cash provided by (used in) operating activities

$ 80,240

$ (28,832)

Three Months Ended March 31,

(In thousands)

2024

2023

Net cash provided by (used in) operating activities, as reported

$ 80,240

$ (28,832)

Net repayments on floor plan notes payable

(89,016)

(6,495)

Minus borrowings on floor plan notes payable associated with acquired new
inventory

(4,271)

Plus net increase to floor plan offset account

$ –

40,000

Net cash (used in) provided by operating activities, as adjusted

$ (8,776)

$ 402

Reconciliation of Non-GAAP Measures

Three Months Ended March 31, 2024

($ in thousands, except per share amounts)

As reported

LIFO

Transaction
costs

Severance and
transition
costs

Adjusted

Costs applicable to revenue

$ 232,820

$ (126)

$ –

$ –

$ 232,694

Selling, general and administrative expenses

48,886

(557)

(92)

48,237

(Loss) income from operations

(16,581)

126

557

92

(15,806)

(Loss) income before income taxes

$ (28,780)

$ 126

$ 557

$ 92

$ (28,005)

Income tax benefit (expense)

6,800

(31)

(138)

(23)

6,608

Net (loss) income

$ (21,980)

$ 95

$ 419

$ 69

$ (21,397)

Dividends on Series A Convertible Preferred
Stock

(1,984)

(1,984)

Net loss and comprehensive loss attributable to
common stock and participating securities

$ (23,964)

$ 95

$ 419

$ 69

$ (23,381)

Diluted loss per share

$ (1.67)

$ (1.63)

Shares used for diluted calculation

14,368,677

14,368,677

Three Months Ended March 31, 2023

($ in thousands, except per
share amounts)

As reported

Gain on
change in
fair value of
warrant
liabilities

LIFO

Acquisition
expense

Severance
and
transition
costs

Impairment
charge

Adjusted

Costs applicable to revenue

$ 231,765

$ –

$ (1,311)

$ –

$ –

$ –

$ 230,454

Selling, general and
administrative expenses

53,532

(262)

(653)

(629)

51,988

Income from operations

5,956

1,311

262

653

629

8,811

Gain on change in fair
value of warrant liabilities

856

(856)

(Loss) income before
income taxes

$ (419)

$ (856)

$ 1,311

$ 262

$ 653

$ 629

$ 1,580

Income tax benefit
(expense)

143

(248)

(50)

(124)

(119)

(398)

Net (loss) income

$ (276)

$ (856)

$ 1,063

$ 212

$ 529

$ 510

$ 1,182

Diluted (loss) per share

$ (0.17)

$ –

Shares used for diluted
calculation

11,988,899

11,988,899

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SOURCE Lazydays Holdings, Inc.