LAZYDAYS REPORTS SECOND QUARTER 2023 FINANCIAL RESULTS

TAMPA, Fla., July 28, 2023 — Lazydays (NasdaqCM: LAZY) today reported financial results for the second quarter ended June 30, 2023.

Second quarter 2023 revenue decreased to $308.4 million from $373.6 million in the second quarter of 2022.

Second quarter 2023 net income was $3.6 million compared to $27.1 million for the same period in 2022. Second quarter 2023 adjusted net income, a non-GAAP measure, was $3.9 million compared to $23.5 million for the same period in 2022. Second quarter 2023 net income per diluted share was $0.12 compared to $0.81 for the same period in 2022. Adjusted second quarter 2023 net income per diluted share was $0.14 compared to $0.87 for the same period in 2022.

Net income for the first six months of 2023 was $3.3 million compared to $60.1 million for the same period in 2022. Adjusted net income for the first six months of 2023 was $5.1 million compared to $51.7 million for the same period in 2022. For the six months ended June 30 2023, net income per diluted share was $0.00 compared to $1.98 for the same period of 2022, and adjusted net income per diluted share was $0.13 compared to $2.12 for the same period in 2022.

As shown in the attached non-GAAP reconciliation tables, the second quarter 2023 adjusted results exclude a net non-core charge of $0.02 per diluted share related to our LIFO adjustment, acquisition expenses and a storm reserve. The second quarter 2022 adjusted results exclude a net non-core charge of $0.06 related to the effects of changes in fair value of warrant liabilities, our LIFO adjustment and acquisition expenses. The adjusted year to date results for the six months ended June 30, 2023 exclude a net non-core charge of $0.08 related to the effects of changes in the fair value of warrant liabilities, our LIFO adjustment, acquisition expenses, transition costs, an impairment charge and a storm reserve. The adjusted year to date results for the same period in 2022 exclude a net non-core charge of $0.14 related to the effects of changes in the fair value of warrant liabilities, our LIFO adjustment, acquisition expenses and transition costs.

Corporate Development

Earlier this month we acquired Buddy Gregg Motorhomes in Knoxville, Tennessee. We estimate this store will add approximately $40 million in revenue at steady state and will more than offset the closure of our Maryville store due to the expansion of the Alcoa Highway by the Tennessee DOT.

In July, our Monticello, Minnesota store became exclusive to the Airstream brand. We renamed the store Airstream Minneapolis.

During the quarter we completed the purchase of a new 8-acre parcel in Las Vegas, Nevada and broke ground on a state-of-the-art facility to relocate our existing store in that market.

We remain on track to open our Wilmington, Ohio and Ft. Pierce, Florida greenfield locations in the third quarter and our Surprise, Arizona greenfield location in the fourth quarter of this year.

Balance Sheet Update

We ended the second quarter with total estimated liquidity of $85.3 million including cash of $24.2 million, $4.6 million of availability on our revolving credit facility and $56.4 million in available floor plan capacity and our floor plan offset account. Additionally, we hold unfinanced real estate of $72.0 million that we estimate could provide liquidity of approximately $61 million.

In July, we completed mortgages on our Murfreesboro, Tennessee store and on our Knoxville property purchased with the Buddy Gregg acquisition. These mortgages generated net proceeds of $30.6 million.

Conference Call Information:

We have scheduled a conference call at 8:30 AM Eastern Time on Friday, July 28, 2023 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 “LAZY”.

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:

  • Anticipated revenues from acquired and open point stores; and
  • Anticipated availability of liquidity from our credit facility and unfinanced operating real estate.

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 presentation contains non-GAAP financial measures such as adjusted net income, adjusted diluted earnings per share, adjusted cost of goods sold, adjusted income before taxes, adjusted income tax benefit, adjusted SG&A, adjusted SG&A as a percentage of revenue, adjusted SG&A as a percentage of gross profit, adjusted operating income as a percentage of revenue, adjusted operating income as a percentage of gross profit, adjusted pre-tax income as a percentage of revenue and adjusted net income as a percentage of revenue. 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, but 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.

Results of Operations

Three months ended June 30,

(In thousands except share and per share amounts)

2023

2022

% Change

Revenue

New vehicle retail

$ 182,752

$ 219,186

(16.6) %

Pre-owned vehicle retail

90,991

112,430

(19.1) %

Vehicle wholesale

1,716

5,704

(69.9) %

Finance and insurance

17,742

21,382

(17.0) %

Service, body and parts and other

15,179

14,850

2.2 %

Total revenue

308,380

373,552

(17.4) %

Cost applicable to revenues

New vehicle retail

158,144

175,109

(9.7) %

Pre-owned vehicle retail

72,425

83,627

(13.4) %

Vehicle wholesale

1,685

5,834

(71.1) %

Finance and insurance

810

843

(3.9) %

Service, body and parts and other

7,517

7,656

(1.8) %

LIFO

76

1,866

(95.9) %

Total cost applicable to revenue

240,657

274,935

(12.5) %

Gross profit

67,723

98,617

(31.3) %

Depreciation and amortization

4,459

4,052

10.0 %

Selling, general, and administrative expenses

50,480

61,605

(18.1) %

Income from operations

12,784

32,960

(61.2) %

Other income (expense)

Floor plan interest expense

(5,835)

(1,466)

298.0 %

Other interest expense

(2,083)

(1,919)

8.6 %

Change in fair value of warrant liabilities

9,652

(100.0) %

Total other expense, net

(7,918)

6,267

(226.3) %

(Loss) income before income tax expense

4,866

39,227

(87.6) %

Income tax benefit (expense)

(1,306)

(7,383)

(82.3) %

Net (loss) income

3,560

31,844

(88.8) %

Dividends on Series A Convertible Preferred
Stock

(1,196)

(1,197)

(0.1) %

Net (loss) income and comprehensive (loss)
income attributable to common stock and
participating securities

$ 2,364

$ 30,647

(92.3) %

EPS:

Basic

$ 0.12

$ 1.76

(93.2) %

Diluted

$ 0.12

$ 0.81

(85.2) %

Weighted average shares outstanding:

Basic

14,181,659

11,394,761

24.5 %

Diluted

14,292,064

12,871,296

11.0 %

Six months ended June 30,

(In thousands except share and per share amounts)

2023

2022

% Change

Revenue

New vehicle retail

$ 359,499

$ 436,622

(17.7) %

Pre-owned vehicle retail

175,766

228,930

(23.2) %

Vehicle wholesale

3,424

12,228

(72.0) %

Finance and insurance

34,623

43,017

(19.5) %

Service, body and parts and other

30,724

28,916

6.3 %

Total revenue

604,036

749,713

(19.4) %

Cost applicable to revenues

New vehicle retail

311,475

347,714

(10.4) %

Pre-owned vehicle retail

139,953

171,910

(18.6) %

Vehicle wholesale

3,406

12,413

(72.6) %

Finance and insurance

1,503

1,540

(2.4) %

Service, body and parts and other

14,698

14,376

2.2 %

LIFO

1,387

4,326

(67.9) %

Total cost applicable to revenue

472,422

552,279

(14.5) %

Gross profit

131,614

197,434

(33.3) %

Depreciation and amortization

8,862

8,136

8.9 %

Selling, general, and administrative expenses

104,012

117,709

(11.6) %

Income from operations

18,740

71,589

(73.8) %

Other income (expense)

Floor plan interest expense

(11,366)

(2,442)

365.4 %

Other interest expense

(3,783)

(3,855)

(1.9) %

Change in fair value of warrant liabilities

856

11,192

(92.4) %

Total other expense, net

(14,293)

4,895

(392.0) %

(Loss) income before income tax expense

4,447

76,484

(94.2) %

Income tax benefit (expense)

(1,163)

(16,356)

(92.9) %

Net (loss) income

3,284

60,128

(94.5) %

Dividends on Series A Convertible Preferred
Stock

(2,380)

(2,381)

– %

Net (loss) income and comprehensive (loss)
income attributable to common stock and
participating securities

$ 904

$ 57,747

(98.4) %

EPS:

Basic

$ 0.05

$ 3.14

(98.4) %

Diluted

$ –

$ 1.98

(100.0) %

Weighted average shares outstanding:

Basic

13,066,607

12,336,431

5.9 %

Diluted

13,188,135

13,914,982

(5.2) %

Total Results Summary

Three months ended June 30,

2023

2022

Change

Gross profit margin

New vehicle retail

13.5 %

20.1 %

(660)

bps

Pre-owned vehicle retail

20.4 %

25.6 %

(520)

bps

Vehicle wholesale

1.8 %

(2.3) %

410

bps

Finance and insurance

95.4 %

96.1 %

(70)

bps

Service, body and parts and other

50.5 %

48.4 %

210

bps

Total gross margin

22.0 %

26.4 %

(440)

bps

Total gross margin, excluding LIFO

22.0 %

26.9 %

(490)

bps

Retail units sold

New vehicle retail

1,979

2,455

(19.4) %

Used vehicle retail

1,388

1,597

(13.1) %

Total retail units sold

3,367

4,052

(16.9) %

Average selling price per retail unit

New vehicle retail

$ 92,346

$ 89,281

3.4 %

Used vehicle retail

$ 65,555

$ 70,401

(6.9) %

Average gross profit per retail unit (excluding LIFO)

New vehicle retail

$ 12,552

$ 17,954

(30.1) %

Used vehicle retail

$ 13,461

$ 18,036

(25.4) %

Finance and insurance

$ 5,029

$ 5,069

(0.8) %

Revenue mix

New vehicle retail

59.3 %

58.7 %

Pre-owned vehicle retail

29.5 %

30.1 %

Vehicle wholesale

0.6 %

1.5 %

Finance and insurance

5.8 %

5.7 %

Service, body and parts and other

4.9 %

4.0 %

100.0 %

100.0 %

Gross profit mix

New vehicle retail

36.3 %

44.7 %

Pre-owned vehicle retail

27.4 %

29.2 %

Vehicle wholesale

– %

(0.1) %

Finance and insurance

25.0 %

20.8 %

Service, body and parts and other

11.3 %

7.3 %

LIFO

(0.1) %

(1.9) %

100.0 %

100.0 %

Six months ended June 30,

2023

2022

Change

Gross profit margin

New vehicle retail

13.4 %

20.4 %

(700)

bps

Pre-owned vehicle retail

20.4 %

24.9 %

(450)

bps

Vehicle wholesale

0.5 %

(1.5) %

200

bps

Finance and insurance

95.7 %

96.4 %

(70)

bps

Service, body and parts and other

52.2 %

50.3 %

190

bps

Total gross margin

21.8 %

26.3 %

(450)

bps

Total gross margin, excluding LIFO

22.0 %

26.9 %

(490)

bps

Retail units sold

New vehicle retail

3,959

4,725

(16.2) %

Used vehicle retail

2,692

3,075

(12.5) %

Total retail units sold

6,651

7,800

(14.7) %

Average selling price per retail unit

New vehicle retail

$ 90,806

$ 92,407

(1.7) %

Used vehicle retail

$ 65,292

$ 74,449

(12.3) %

Average gross profit per retail unit (excluding LIFO)

New vehicle retail

$ 12,189

$ 18,816

(35.2) %

Used vehicle retail

$ 13,347

$ 18,543

(28.0) %

Finance and insurance

$ 4,980

$ 5,318

(6.4) %

Revenue mix

New vehicle retail

59.5 %

58.2 %

Pre-owned vehicle retail

29.1 %

30.5 %

Vehicle wholesale

0.6 %

1.6 %

Finance and insurance

5.7 %

5.7 %

Service, body and parts and other

5.1 %

3.9 %

100.0 %

100.0 %

Gross profit mix

New vehicle retail

36.5 %

45.0 %

Pre-owned vehicle retail

27.2 %

28.9 %

Vehicle wholesale

– %

(0.1) %

Finance and insurance

25.2 %

21.0 %

Service, body and parts and other

12.2 %

7.4 %

LIFO

(1.1) %

(2.2) %

100.0 %

100.0 %

Other Metrics

Adjusted

As Reported

Three months ended
June 30,

Three months ended
June 30,

2023

2022

2023

2022

SG&A as a % of revenue

16.2 %

16.4 %

16.4 %

16.5 %

SG&A as % of gross profit, excluding LIFO

73.7 %

63.4 %

74.5 %

63.7 %

Income from operations as a % of revenue

4.3 %

9.4 %

4.1 %

8.8 %

Income from operations as a % of gross profit, excluding LIFO

19.7 %

36.3 %

18.9 %

34.1 %

Income (loss) before income taxes as % of revenue

1.8 %

8.5 %

1.6 %

10.5 %

Net income (loss) as a % of revenue

1.3 %

6.3 %

1.2 %

8.5 %

Adjusted

As Reported

Six months ended
June 30,

Six months ended
June 30,

2023

2022

2023

2022

SG&A as a % of revenue

16.9 %

15.7 %

17.2 %

15.7 %

SG&A as % of gross profit, excluding LIFO

76.7 %

60.8 %

78.2 %

61.0 %

Income from operations as a % of revenue

3.7 %

10.2 %

3.1 %

9.5 %

Income from operations as a % of gross profit, excluding LIFO

16.7 %

39.5 %

14.1 %

37.1 %

Income (loss) before income taxes as % of revenue

1.2 %

9.3 %

0.7 %

10.2 %

Net income (loss) as a % of revenue

0.8 %

6.9 %

0.5 %

8.0 %

Other Highlights

As of

June 30, 2023

December 31, 2022

Dealerships

20

18

Days Supply*

New vehicle inventory

180

250

Pre-owned vehicle inventory

83

78

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

Financial Covenants

As of

Requirement

June 30, 2023

Fixed charge coverage ratio

Not less than 1.25 to 1

1.87

Leverage ratio

Not more than 3.0 to 1

1.51

Current ratio

Not less than 1.15 to 1

1.27

Same-Store Results Summary

Three months ended June 30,

($ in thousands, except per vehicle data)

2023

2022

Change

Revenues

New vehicle retail

$ 171,812

$ 219,186

(21.6) %

Pre-owned vehicle retail

86,577

112,430

(23.0) %

Vehicle wholesale

1,646

5,704

(71.1) %

Finance and insurance

16,531

21,382

(22.7) %

Service, body and parts and other

14,340

14,849

(3.4) %

Total revenues

$ 290,906

$ 373,551

(22.1) %

Gross profit

New vehicle retail

$ 23,166

$ 44,077

(47.4) %

Pre-owned vehicle retail

17,585

28,803

(38.9) %

Vehicle wholesale

36

(130)

NM

Finance and insurance

15,767

20,540

(23.2) %

Service, body and parts and other

7,219

7,193

0.4 %

LIFO

(76)

(1,866)

(95.9) %

Total gross profit

$ 63,697

$ 98,618

(35.4) %

Gross profit margins

New vehicle retail

13.5 %

20.1 %

(660)

bps

Pre-owned vehicle retail

20.3 %

25.6 %

(530)

bps

Vehicle wholesale

2.2 %

(2.3) %

450

bps

Finance and insurance

95.4 %

96.1 %

(70)

bps

Service, body and parts and other

50.3 %

48.4 %

190

bps

Total gross profit margin

21.9 %

26.4 %

(450)

bps

Total gross profit margin (excluding LIFO)

21.9 %

26.9 %

(500)

bps

Retail units sold

New vehicle retail

1,836

2,455

(25.2) %

Used vehicle retail

1,305

1,597

(18.3) %

Total retail units sold

3,141

4,052

(22.5) %

Average selling price per retail unit

New vehicle retail

$ 93,580

$ 89,281

4.8 %

Used vehicle retail

$ 66,342

$ 70,401

(5.8) %

Average gross profit per retail unit (excluding LIFO)

New vehicle retail

$ 12,744

$ 17,954

(29.0) %

Used vehicle retail

$ 13,566

$ 18,036

(24.8) %

Finance and insurance

$ 5,020

$ 5,069

(1.0) %

NM – not meaningful

Six months ended June 30,

(In thousands, except vehicle and per vehicle data)

2023

2022

Change

Revenues

New vehicle retail

$ 339,778

$ 436,622

(22.2) %

Pre-owned vehicle retail

168,538

228,930

(26.4) %

Vehicle wholesale

3,354

12,228

(72.6) %

Finance and insurance

32,660

43,017

(24.1) %

Service, body and parts and other

29,289

28,915

1.3 %

Total revenues

$ 573,619

$ 749,712

(23.5) %

Gross profit

New vehicle retail

$ 45,502

$ 88,908

(48.8) %

Pre-owned vehicle retail

34,257

57,020

(39.9) %

Vehicle wholesale

23

(186)

NM

Finance and insurance

31,233

41,478

(24.7) %

Service, body and parts and other

15,251

14,540

4.9 %

LIFO

(1,387)

(4,326)

(67.9) %

Total gross profit

$ 124,879

$ 197,432

(36.7) %

Gross profit margins

New vehicle retail

13.4 %

20.4 %

(700)

bps

Pre-owned vehicle retail

20.3 %

24.9 %

(460)

bps

Vehicle wholesale

0.7 %

(1.5) %

220

bps

Finance and insurance

95.6 %

96.4 %

(80)

bps

Service, body and parts and other

52.1 %

50.3 %

180

bps

Total gross profit margin

21.8 %

26.3 %

(450)

bps

Total gross profit margin (excluding LIFO)

22.0 %

26.9 %

(490)

bps

Retail units sold

New vehicle retail

3,677

4,725

(22.2) %

Pre-owned vehicle retail

2,553

3,075

(17.0) %

Total retail units sold

6,230

7,800

(20.1) %

Average selling price per retail unit

New vehicle retail

$ 92,406

$ 92,407

– %

Pre-owned vehicle retail

$ 66,016

$ 74,449

(11.3) %

Average gross profit per retail unit (excluding LIFO)

New vehicle retail

$ 12,438

$ 18,816

(33.9) %

Pre-owned vehicle retail

$ 13,465

$ 18,543

(27.4) %

Finance and insurance

$ 5,013

$ 5,318

(5.7) %

NM – not meaningful

Condensed Consolidated Balance Sheets

(In thousands)

As of June 30, 2023

As of December 31, 2022

Current assets

Cash

$ 24,173

$ 61,687

Receivables, net

28,468

25,053

Inventories

389,832

378,881

Other current assets

12,163

11,228

Total current assets

454,636

476,849

Long-term assets

Property and equipment, net

207,568

158,991

Goodwill and intangible assets, net

167,127

165,125

Other assets

27,995

29,753

Total assets

$ 857,326

$ 830,718

Current liabilities

Floor plan notes payable

$ 305,061

$ 348,735

Other current liabilities

54,220

50,890

Total current liabilities

359,281

399,625

Long-term liabilities

Financing liability, non-current portion, net

90,090

89,770

Revolving line of credit

45,000

Long-term debt, non-current portion, net

312

10,131

Other long-term liabilities

36,090

39,197

Total liabilities

530,773

538,723

Series A Convertible Preferred Stock

54,983

54,983

Stockholders’ Equity

271,570

237,012

Total liabilities and stockholders’ equity

$ 857,326

$ 830,718

Condensed Statements of Cash Flows

Six months ended June 30,

(In thousands)

2023

2022

Cash Flows From Operating Activities

Net (loss) income

$ 3,284

$ 60,128

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

Stock based compensation

1,639

1,252

Bad debt expense

9

76

Depreciation of property and equipment

5,195

4,521

Amortization of intangible assets

3,667

3,615

Amortization of debt discount

655

186

Non-cash lease expense

93

138

Loss on sale of property and equipment

2

Deferred income taxes

(147)

Change in fair value of warrant liabilities

(856)

(11,192)

Tax benefit related to stock-based awards

79

Impairment charges

538

Changes in operating assets and liabilities (net of acquisitions and
dispositions):

Receivables

(3,424)

(3,665)

Inventories

(4,346)

(79,231)

Prepaid expenses and other

(2,712)

(1,144)

Income tax receivable/payable

1,239

(3,560)

Other assets

(390)

(423)

Accounts payable

3,744

(4,494)

Accrued expenses and other current liabilities

2,517

1,967

Total Adjustments

7,421

(91,873)

Net Cash Provided By (Used In) Operating Activities

$ 10,705

$ (31,745)

Six months ended June 30,

(In thousands)

2023

2022

Net Cash Provided By (Used In) Operating Activities

As reported

$ 10,705

$ (31,745)

Net borrowings (repayments) on floor plan notes payable

(44,293)

89,487

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

$ 2,141

$ 57,742

Reconciliation of Non-GAAP Measures

Three months ended June 30, 2023

($ in thousands, except per share amounts)

As
reported

LIFO

Acquisition
expense

Storm
Reserve

Adjusted

Costs applicable to revenues

$ 240,657

$ (76)

$ –

$ –

$ 240,581

Selling, general and administrative expenses

50,480

(209)

(300)

49,971

Income from operations

12,784

76

209

300

13,369

Gain on change in fair value of warrant liabilities

(Loss) income before income taxes

$ 4,866

$ 76

$ 209

$ 300

$ 5,451

Income tax benefit (expense)

(1,306)

(48)

(51)

(106)

(1,511)

Net (loss) income

$ 3,560

$ 28

$ 158

$ 194

$ 3,940

Diluted income per share

$ 0.12

$ 0.14

Shares used for diluted calculation

14,292,064

Three months ended June 30, 2022

($ in thousands, except per share amounts)

As
reported

Gain on
change in fair
value of
warrant
liabilities

LIFO

Acquisition
expense

Severance
and transition
costs

Adjusted

Costs applicable to revenues

$ 274,935

$ –

$ (1,866)

$ –

$ –

$ 273,069

Selling, general and administrative
expenses

61,605

(87)

(223)

61,295

Income from operations

32,960

1,866

87

223

35,136

Gain on change in fair value of
warrant liabilities

9,652

(9,652)

Income (loss) before income taxes

$ 39,227

$ (9,652)

$ 1,866

$ 87

$ 223

$ 31,751

Income tax expense

(7,383)

(774)

(36)

(92)

(8,285)

Net income (loss)

$ 31,844

$ (9,652)

$ 1,092

$ 51

$ 131

$ 23,466

Diluted earnings per share

$ 0.81

$ 0.87

Shares used for diluted calculation

12,871,296

Six months ended June 30, 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

Storm
Reserve

Adjusted

Costs applicable to
revenues

$ 472,422

$ –

$ (1,387)

$ –

$ –

$ –

$ –

$ 471,035

Selling, general
and administrative
expenses

104,012

(471)

(653)

(629)

(300)

101,959

Income from
operations

18,740

1,387

471

653

629

300

22,180

Gain on change in
fair value of
warrant liabilities

856

(856)

(Loss) income
before income
taxes

$ 4,447

$ (856)

$ 1,387

$ 471

$ 653

$ 629

$ 300

$ 7,031

Income tax benefit
(expense)

(1,163)

(296)

(101)

(124)

(119)

(106)

(1,909)

Net (loss) income

$ 3,284

$ (856)

$ 1,091

$ 370

$ 529

$ 510

$ 194

$ 5,122

Diluted (loss)
income per share

$ –

$ 0.13

Shares used for
diluted calculation

13,188,135

Six months ended June 30, 2022

($ in thousands, except per share
amounts)

As
reported

Gain on
change in
fair value of
warrant
liabilities

LIFO

Acquisition
expense

Severance
and
transition
costs

Adjusted

Costs applicable to revenues

$ 552,279

$ –

$ (4,326)

$ –

$ –

$ 547,953

Selling, general and administrative
expenses

117,709

(121)

(223)

117,365

Income from operations

71,589

4,326

121

223

76,259

Gain on change in fair value of
warrant liabilities

11,192

(11,192)

Income (loss) before income taxes

$ 76,484

$ (11,192)

$ 4,326

$ 121

$ 223

$ 69,962

Income tax expense

(16,356)

(1,760)

(49)

(92)

(18,257)

Net income (loss)

$ 60,128

$ (11,192)

$ 2,566

$ 72

$ 131

$ 51,705

Diluted earnings per share

$ 1.98

$ 2.12

Shares used for diluted calculation

13,914,982

* In periods where the change in fair value of warrants is a gain, the diluted EPS calculation is not affected by this line item.

Contact:
investors@lazydays.com

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SOURCE Lazydays Holdings, Inc.