LAZYDAYS REPORTS SECOND QUARTER 2024 RESULTS

TAMPA, Fla., Aug. 15, 2024 — Lazydays (NasdaqCM: GORV) today reports results for the second quarter ended June 30, 2024.

John North, Chief Executive Officer, commented, “Our team has focused on maintaining healthy vehicle inventory, improving F&I per unit and achieving substantial total gross margin improvement sequentially. However, the seasonal improvement in sales volume we had anticipated to occur in the second quarter did not materialize. On a same-store basis, we saw a decline in both new and used unit volume relative to the first quarter, partially offset by significantly improved gross profit per unit sold reflecting the benefits of the inventory actions we took earlier this year. Our same store F&I was over $5,300 per unit, up 6.9%, despite average selling prices being lower by approximately 17% on a blended basis.

We have continued to focus on maintaining our healthy inventory position while increasing our efforts to procure more used units directly from consumers as trade-ins on vehicle sales have been off approximately 50% compared to our historical averages. As of today, our new inventory is comprised of 26% model year 2025 units and 69% model year 2024 units, with less than 140 2023 units remaining. Also of note, over 75% of our inventory is towable product, up from 70% at the same time last year.”

Commenting on operational changes since the end of the second quarter, John stated, “Given the current unit sales volume, we have implemented further cost reduction actions in August that should be substantially complete by the end of September. We anticipate these decisions will save approximately $25 million annually. We have also closed our Waller, Texas dealership, and consolidated our retail operations from two locations to one in the Surprise, Arizona market.

While these decisions are painful, they are necessary. Despite these two store actions, we remain enthusiastic about operating the rest of our best-in-class locations and will continue to adjust our expense structure as necessary to seek to match the revenue opportunities available. We would note that we are not contemplating, nor are we in discussions with counterparties regarding strategic transactions involving significant store divestitures or business combinations at this time.

As usual, I want to thank our entire team for delivering the improvements in operating results that are within our control and providing exceptional customer experiences as we await the market recovery. We remain confident in the earnings power of our company and look forward to unlocking its full potential as the industry recovers.”

Total revenue for the second quarter was $238.7 million compared to $308.4 million for the same period in 2023. Total revenue for the six months ended June 30, 2024 was $509.3 million compared to $604.0 million for the same period in 2023.

Net loss for the second quarter was $44.2 million compared to net income of $3.6 million for the same period in 2023. Adjusted net loss, a non-GAAP measure, was $18.4 million compared to adjusted net income of $3.9 million for the same period in 2023. Net loss per diluted share was $3.22 compared to net income per diluted share of $0.12 for the same period in 2023. Adjusted net loss per diluted share was $1.42 compared to adjusted net income per diluted share of $0.14 for the same period in 2023.

Net loss for the six months ended June 30, 2024 as $66.2 million compared to net income of $3.3 million for the same period in 2023. Adjusted net loss, a non-GAAP measure, was $46.5 million compared to adjusted net income of $5.1 million for the same period in 2023. Net loss per diluted share was $4.89 compared to net income per diluted share of $0.00 for the same period in 2023. Adjusted net loss per diluted share was $3.51 compared to adjusted net income per diluted share of $0.13 for the same period in 2023.

See Reconciliation of Non-GAAP Measures for additional details regarding our adjusted results of operations.

Balance Sheet and Strategic Update
After the end of the second quarter, we executed a temporary waiver related to our required financial covenants as of June 30, 2024. This waiver was approved by 100% of the lenders in our syndicated credit facility and provides additional runway to negotiate an amendment to the facility.

Earlier this week, we received a nonbinding commitment from the clients of Coliseum Capital Management to provide an additional $5 million in capital that will be added by increasing the mortgage loan facility we established in December 2023. The terms of the incremental advance are substantially similar to the terms of the existing mortgage loan facility and require no additional collateral to be added to the pool. In connection with the incremental advance, it is contemplated that Lazydays will issue warrants to clients of Coliseum Capital Management to purchase 666,667 shares of common stock at a price of $5.25 per share, subject to certain adjustments.

The special committee of independent directors established by our board of directors was advised by Stoel Rives LLP. Upon review, the special committee unanimously approved the nonbinding commitment to increase to the size of the mortgage loan facility and related warrant issuance.

Additionally, the special committee continues to seek sources of incremental capital from investors and has engaged Miller Buckfire, a Stifel company, to assist in the process. While we remain open to other potential transactions that are in the best interest of our shareholders, at the present time we have determined the most prudent course of action is to focus on strategic financing so that we maintain scale and gain additional flexibility to operate the attractive platform of dealership assets in our portfolio.

As a result of the upcoming expiration of the temporary waiver to our credit facility, we have presented our long-term debt in current portion as of June 30, 2024. We note that to date our lenders have not accelerated any amounts due or made any repayment demands beyond routine amounts required in the normal course of business.

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. We believe we have adequate liquidity to continue to navigate the current macroeconomic environment.”

Conference Call Information
We have scheduled a conference call at 8:30 AM Eastern Time on Friday, August 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 financing transactions 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;
  • Full year 2024 results, including anticipated cost savings;
  • Our recent history of losses and our ability to continue as a going concern;
  • The earnings power of our store base, and our unlocking of its full earnings potential;
  • Our ability to generate additional sources of financing; 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 our ability to obtain further waivers or amendments to credit agreements, the actions or inactions of our lenders, available borrowing capacity, our compliance with financial covenants and our ability to refinance or repay indebtedness on terms acceptable to us), acts of God or other incidents which may adversely impact our operations and financial performance, government regulations, legislation and others set forth throughout under the headers “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” and in the notes to our financial statements, in our most recent Quarterly Report on Form 10-Q, Annual Report on Form 10-Kand 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 June 30,

Variance

(In thousands except share and per share amounts)

2024

2023

%

Revenues

New vehicle retail

$ 143,333

$ 182,752

(21.6) %

Pre-owned vehicle retail

60,908

90,991

(33.1) %

Vehicle wholesale

3,268

1,716

NM

Finance and insurance

16,041

17,742

(9.6) %

Service, body and parts and other

15,144

15,179

(0.2) %

Total revenues

238,694

308,380

(22.6) %

Cost applicable to revenues

New vehicle retail

130,138

158,144

(17.7) %

Pre-owned vehicle retail

49,446

72,425

(31.7) %

Vehicle wholesale

3,597

1,685

NM

Finance and insurance

644

810

(20.5) %

Service, body and parts and other

7,150

7,517

(4.9) %

LIFO

315

76

NM

Total cost applicable to revenues

191,290

240,657

(20.5) %

Gross profit

47,404

67,723

(30.0) %

Depreciation and amortization

4,956

4,459

11.1 %

Selling, general, and administrative expenses

50,966

50,480

1.0 %

(Loss) income from operations

(8,518)

12,784

(166.6) %

Other income (expense):

Floor plan interest expense

(5,708)

(5,835)

(2.2) %

Other interest expense

(5,837)

(2,083)

180.2 %

Change in fair value of warrant liabilities

(337)

NM

Total other expense, net

(11,882)

(7,918)

50.1 %

(Loss) income before income taxes

(20,400)

4,866

NM

Income tax expense

(23,821)

(1,306)

1,724.0 %

Net (loss) income

(44,221)

3,560

NM

Dividends on Series A Convertible Preferred Stock

(2,031)

(1,196)

69.8 %

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

$ (46,252)

$ 2,364

NM

(Loss) income per share:

Basic

$ (3.22)

$ 0.12

NM

Diluted

$ (3.22)

$ 0.12

NM

Weighted average shares used for EPS calculations:

Basic

14,374,897

14,181,659

Diluted

14,374,897

14,292,064

*NM – not meaningful

Six Months Ended June 30,

Variance

(In thousands except share and per share amounts)

2024

2023

%

Revenues

New vehicle retail

$ 296,024

$ 359,499

(17.7) %

Pre-owned vehicle retail

140,484

175,766

(20.1) %

Vehicle wholesale

9,517

3,424

NM

Finance and insurance

34,370

34,623

(0.7) %

Service, body and parts and other

28,885

30,724

(6.0) %

Total revenues

509,280

604,036

(15.7) %

Cost applicable to revenues

New vehicle retail

277,193

311,475

(11.0) %

Pre-owned vehicle retail

119,645

139,953

(14.5) %

Vehicle wholesale

12,057

3,406

NM

Finance and insurance

1,337

1,503

(11.0) %

Service, body and parts and other

13,437

14,698

(8.6) %

LIFO

441

1,387

(68.2) %

Total cost applicable to revenues

424,110

472,422

(10.2) %

Gross profit

85,170

131,614

(35.3) %

Depreciation and amortization

10,417

8,862

17.5 %

Selling, general, and administrative expenses

99,852

104,012

(4.0) %

(Loss) income from operations

(25,099)

18,740

(233.9) %

Other income (expense):

Floor plan interest expense

(13,384)

(11,366)

17.8 %

Other interest expense

(10,360)

(3,783)

173.9 %

Change in fair value of warrant liabilities

(337)

856

(139.4) %

Total other expense, net

(24,081)

(14,293)

68.5 %

(Loss) income before income taxes

(49,180)

4,447

NM

Income tax expense

(17,021)

(1,163)

NM

Net (loss) income

(66,201)

3,284

NM

Dividends on Series A Convertible Preferred Stock

(4,015)

(2,380)

68.7 %

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

$ (70,216)

$ 904

NM

(Loss) income per share:

Basic

$ (4.89)

$ 0.05

NM

Diluted

$ (4.89)

$ –

NM

Weighted average shares used for EPS calculations:

Basic

14,371,787

13,066,607

Diluted

14,371,787

13,188,135

*NM – not meaningful

Total Results Summary

Three Months Ended June 30,

Variance

2024

2023

Gross profit margins

New vehicle retail

9.2 %

13.5 %

(430)

bps

Pre-owned vehicle retail

18.8 %

20.4 %

(160)

bps

Vehicle wholesale

(10.1) %

1.8 %

NM

Finance and insurance

96.0 %

95.4 %

60

bps

Service, body and parts and other

52.8 %

50.5 %

230

bps

Total gross profit margin

19.9 %

22.0 %

(210)

bps

Total gross profit margin (excluding LIFO)

20.0 %

22.0 %

(200)

bps

Retail units sold

New vehicle retail

2,036

1,979

2.9 %

Pre-owned vehicle retail

1,149

1,388

(17.2) %

Total retail units sold

3,185

3,367

(5.4) %

Average selling price per retail unit

New vehicle retail

$ 70,458

$ 92,346

(23.7) %

Pre-owned vehicle retail

53,009

65,555

(19.1) %

Average gross profit per retail unit (excluding LIFO)

New vehicle retail

$ 6,412

$ 12,552

(48.9) %

Pre-owned vehicle retail

9,976

13,461

(25.9) %

Finance and insurance

5,084

5,029

1.1 %

Revenue mix

New vehicle retail

60.0 %

59.3 %

Pre-owned vehicle retail

25.5 %

29.5 %

Vehicle wholesale

1.4 %

0.6 %

Finance and insurance

6.7 %

5.8 %

Service, body and parts and other

6.3 %

4.8 %

100.0 %

100.0 %

Gross profit mix

New vehicle retail

27.8 %

36.3 %

Pre-owned vehicle retail

24.2 %

27.4 %

Vehicle wholesale

(0.7) %

– %

Finance and insurance

32.5 %

25.0 %

Service, body and parts and other

16.9 %

11.4 %

LIFO

(0.7) %

(0.1) %

100.0 %

100.0 %

*NM – not meaningful

Six Months Ended June 30,

Variance

2024

2023

Gross profit margins

New vehicle retail

6.4 %

13.4 %

(700)

bps

Pre-owned vehicle retail

14.8 %

20.4 %

(560)

bps

Vehicle wholesale

(26.7) %

0.5 %

NM

Finance and insurance

96.1 %

95.7 %

40

bps

Service, body and parts and other

53.5 %

52.2 %

130

bps

Total gross profit margin

16.7 %

21.8 %

(510)

bps

Total gross profit margin (excluding LIFO)

16.8 %

22.0 %

(520)

bps

Retail units sold

New vehicle retail

4,091

3,959

3.3 %

Pre-owned vehicle retail

2,616

2,692

(2.8) %

Total retail units sold

6,707

6,651

0.8 %

Average selling price per retail unit

New vehicle retail

$ 72,389

$ 90,806

(20.3) %

Pre-owned vehicle retail

53,702

65,292

(17.8) %

Average gross profit per retail unit (excluding LIFO)

New vehicle retail

$ 4,569

$ 12,189

(62.5) %

Pre-owned vehicle retail

7,966

13,347

(40.3) %

Finance and insurance

5,044

4,980

1.3 %

Revenue mix

New vehicle retail

58.1 %

59.5 %

Pre-owned vehicle retail

27.6 %

29.1 %

Vehicle wholesale

1.9 %

0.6 %

Finance and insurance

6.7 %

5.7 %

Service, body and parts and other

5.7 %

5.1 %

100.0 %

100.0 %

Gross profit mix

New vehicle retail

22.1 %

36.5 %

Pre-owned vehicle retail

24.5 %

27.2 %

Vehicle wholesale

(3.0) %

– %

Finance and insurance

38.8 %

25.2 %

Service, body and parts and other

18.1 %

12.2 %

LIFO

(0.5) %

(1.1) %

100.0 %

100.0 %

*NM – not meaningful

Other Metrics

Adjusted

As Reported

Three Months Ended June 30,

Three Months Ended June 30,

2024

2023

2024

2023

SG&A as a % of revenue

20.9 %

16.2 %

21.4 %

16.4 %

SG&A as % of gross profit, excluding LIFO

104.5 %

73.7 %

106.8 %

74.5 %

(Loss) income from operations as a % of revenue

(3.0) %

4.3 %

(3.6) %

4.1 %

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

(14.9) %

19.7 %

(17.9) %

18.9 %

(Loss) income before income taxes as % of revenue

(7.8) %

1.8 %

(8.5) %

1.6 %

Net (loss) income as a % of revenue

(7.7) %

1.3 %

(18.5) %

1.2 %

Adjusted

As Reported

Six Months Ended June 30,

Six Months Ended June 30,

2024

2023

2024

2023

SG&A as a % of revenue

19.3 %

16.9 %

19.6 %

17.2 %

SG&A as % of gross profit, excluding LIFO

114.6 %

76.7 %

116.6 %

78.2 %

(Loss) income from operations as a % of revenue

(4.5) %

3.7 %

(4.9) %

3.1 %

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

(26.8) %

16.7 %

(29.3) %

14.1 %

(Loss) income before income taxes as % of revenue

(9.2) %

1.2 %

(9.7) %

0.7 %

Net (loss) income as a % of revenue

(9.1) %

0.8 %

(13.0) %

0.5 %

Other Highlights

June 30, 2024

December 31, 2023

Store Count

Dealerships

25

24

Days Supply*

New vehicle inventory

203

380

Pre-owned vehicle inventory

91

132

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

Financial Covenants

Requirement

June 30, 2024

Minimum liquidity

$31,000,000

$41,370,694

Same-Store Results Summary

Three Months Ended June 30,

Variance

($ in thousands, except per vehicle data)

2024

2023

Revenues

New vehicle retail

$ 120,041

$ 172,156

(30.3) %

Pre-owned vehicle retail

50,041

86,900

(42.4) %

Vehicle wholesale

2,857

1,591

79.6 %

Finance and insurance

13,741

16,930

(18.8) %

Service, body and parts and other

12,617

14,371

(12.2) %

Total revenues

$ 199,297

$ 291,948

(31.7) %

Gross profit

New vehicle retail

$ 10,194

$ 23,250

(56.2) %

Pre-owned vehicle retail

9,077

17,771

(48.9) %

Vehicle wholesale

(312)

31

NM

Finance and insurance

13,187

16,146

(18.3) %

Service, body and parts and other

6,530

6,883

(5.1) %

LIFO

(316)

(76)

315.8 %

Total gross profit

$ 38,360

$ 64,005

(40.1) %

Gross profit margins

New vehicle retail

8.5 %

13.5 %

(500)

bps

Pre-owned vehicle retail

18.1 %

20.4 %

(230)

bps

Vehicle wholesale

(10.9) %

1.9 %

NM

Finance and insurance

96.0 %

95.4 %

60

bps

Service, body and parts and other

51.8 %

47.9 %

390

bps

Total gross profit margin

19.2 %

21.9 %

(270)

bps

Total gross profit margin (excluding LIFO)

19.4 %

21.9 %

(250)

bps

Retail units sold

New vehicle retail

1,556

1,834

(15.2) %

Pre-owned vehicle retail

901

1,300

(30.7) %

Total retail units sold

2,457

3,134

(21.6) %

Average selling price per retail unit

New vehicle retail

$ 77,147

$ 93,580

(17.6) %

Pre-owned vehicle retail

55,539

66,342

(16.3) %

Average gross profit per retail unit (excluding LIFO)

New vehicle retail

$ 6,552

$ 12,744

(48.6) %

Pre-owned vehicle retail

10,075

13,566

(25.7) %

Finance and insurance

5,367

5,020

6.9 %

*NM – not meaningful

Six Months Ended June 30,

Variance

(In thousands, except per vehicle data)

2024

2023

Revenues

New vehicle retail

$ 250,866

$ 341,930

(26.6) %

Pre-owned vehicle retail

116,756

168,425

(30.7) %

Vehicle wholesale

7,903

3,249

143.2 %

Finance and insurance

29,280

33,283

(12.0) %

Service, body and parts and other

24,482

29,136

(16.0) %

Total revenues

$ 429,287

$ 576,023

(25.5) %

Gross profit

New vehicle retail

$ 15,091

$ 45,730

(67.0) %

Pre-owned vehicle retail

16,806

34,328

(51.0) %

Vehicle wholesale

(1,838)

15

NM

Finance and insurance

28,120

31,827

(11.6) %

Service, body and parts and other

13,039

14,882

(12.4) %

LIFO

(441)

(1,387)

(68.2) %

Total gross profit

$ 70,777

$ 125,395

(43.6) %

Gross profit margins

New vehicle retail

6.0 %

13.4 %

(740)

bps

Pre-owned vehicle retail

14.4 %

20.4 %

(600)

bps

Vehicle wholesale

(23.3) %

0.5 %

NM

Finance and insurance

96.0 %

95.6 %

40

bps

Service, body and parts and other

53.3 %

51.1 %

220

bps

Total gross profit margin

16.5 %

21.8 %

(530)

bps

Total gross profit margin (excluding LIFO)

16.6 %

22.0 %

(540)

bps

Retail units sold

New vehicle retail

3,192

3,707

(13.9) %

Pre-owned vehicle retail

2,092

2,530

(17.3) %

Total retail units sold

5,284

6,237

(15.3) %

Average selling price per retail unit

New vehicle retail

$ 78,592

$ 92,406

(14.9) %

Pre-owned vehicle retail

55,811

66,016

(15.5) %

Average gross profit per retail unit (excluding LIFO)

New vehicle retail

$ 4,728

$ 12,438

(62.0) %

Pre-owned vehicle retail

8,033

13,465

(40.3) %

Finance and insurance

5,322

5,013

6.2 %

*NM – not meaningful

Condensed Consolidated Balance Sheets

(In thousands)

June 30, 2024

December 31, 2023

Current assets

Cash

$ 42,022

$ 58,085

Receivables, net of allowance for doubtful accounts

28,806

22,694

Inventories

314,382

456,087

Income tax receivable

6,675

7,416

Prepaid expenses and other

4,907

2,614

Total current assets

396,792

546,896

Long-term assets

Property and equipment, net

272,297

265,726

Operating lease assets

23,629

26,377

Intangible assets, net

76,477

80,546

Other assets

3,173

2,750

Deferred income tax asset

15,444

Total assets

$ 772,368

$ 937,739

Current liabilities

Floor plan notes payable

$ 330,967

$ 446,783

Revolving line of credit, current portion

44,500

Other current liabilities

131,083

53,194

Total current liabilities

506,550

499,977

Long-term liabilities

Financing liability, non-current portion, net

91,509

91,401

Revolving line of credit, non-current portion

49,500

Long-term debt, non-current portion, net

28,075

Related party debt, non-current portion, net

33,354

Warrant liabilities

5,244

Other long-term liabilities

20,859

22,242

Total liabilities

624,162

724,549

Series A Convertible Preferred Stock

60,208

56,193

Stockholders’ Equity

87,998

156,997

Total liabilities and stockholders’ equity

$ 772,368

$ 937,739

Future maturities of long-term debt are as follows:

(In thousands)

Remainder of 2024

$ 5,578

2025

771

2026

45,326

2027

886

2028

950

Thereafter

20,358

Total

$ 73,869

The above schedule reflects contractual maturities, but for financial reporting, long-term debt, and related party debt have
been classified as current as described in Note 2 and Note 7 to the Condensed Consolidated Financial Statements.

Condensed Consolidated Statements of Cash Flows

Six Months Ended June 30,

(In thousands)

2024

2023

Operating Activities

Net (loss) income

$ (66,201)

$ 3,284

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

Stock-based compensation

1,104

1,639

Bad debt expense

76

9

Depreciation and amortization of property and equipment

6,346

5,195

Amortization of intangible assets

4,070

3,667

Amortization of debt discount

506

655

Non-cash operating lease (benefit) expense

(217)

93

Gain on sale of property and equipment

(2,950)

Deferred income taxes

16,375

(147)

Change in fair value of warrant liabilities

337

(856)

Impairment charges

538

Changes in operating assets and liabilities:

Receivables

(6,188)

(3,424)

Inventories

141,705

(4,346)

Prepaid expenses and other

(2,293)

(2,712)

Income tax receivable/payable

744

1,239

Other assets

(424)

(390)

Accounts payable

1,920

3,744

Accrued expenses and other current liabilities

6,405

2,517

Total adjustments

167,516

7,421

Net cash provided by operating activities

$ 101,315

$ 10,705

Six Months Ended June 30,

(In thousands)

2024

2023

Net cash provided by operating activities, as reported

$ 101,315

$ 10,705

Net repayments on floor plan notes payable

(114,824)

(44,293)

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

$ (13,509)

$ 2,141

Reconciliation of Non-GAAP Measures

Three months ended June 30, 2024

($ in thousands, except per share amounts)

As reported

Loss on
change in
fair value of
warrant
liabilities

LIFO

Transaction
costs

Severance
and
transition
costs

Deferred
Tax
Valuation
Allowance

Adjusted

Costs applicable to revenue

$ 191,290

$ –

$ (315)

$ –

$ –

$ –

$ 190,975

Selling, general and administrative expenses

50,966

(1,073)

(7)

49,886

(Loss) income from operations

(8,518)

315

1,073

7

(7,123)

Change in fair value of warrant liabilities

(337)

337

(Loss) income before income taxes

(20,400)

337

315

1,073

7

(18,668)

Income tax (expense) benefit

(23,821)

(5)

(5)

(16)

24,096

249

Net (loss) income

(44,221)

332

310

1,057

7

24,096

(18,419)

Dividends on Series A Convertible Preferred Stock

(2,031)

(2,031)

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

$ (46,252)

$ 332

$ 310

$ 1,057

$ 7

$ 24,096

$ (20,450)

Diluted loss per share

$ (3.22)

$ (1.42)

Shares used for diluted calculation

14,374,897

14,374,897

Three months ended June 30, 2023

($ in thousands, except per share amounts)

As reported

LIFO

Transaction costs

Storm Reserve

Adjusted

Costs applicable to revenue

$ 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

Income before income taxes

4,866

76

209

300

5,451

Income tax expense

(1,306)

(48)

(51)

(106)

(1,511)

Net income

3,560

28

158

194

3,940

Dividends on Series A Convertible Preferred Stock

(1,196)

(1,196)

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

$ 2,364

$ 28

$ 158

$ 194

$ 2,744

Diluted earnings per share

$ 0.12

$ 0.14

Shares used for diluted calculation

14,292,064

14,292,064

Six months ended June 30, 2024

($ in thousands, except per share amounts)

As reported

Loss on
change in
fair value of
warrant
liabilities

LIFO

Transaction
costs

Severance
and
transition
costs

Deferred Tax
Valuation
Allowance

Adjusted

Costs applicable to revenue

$ 424,110

$ –

$ (441)

$ –

$ –

$ –

$ 423,669

Selling, general and administrative expenses

99,852

(1,630)

(99)

98,123

(Loss) income from operations

(25,099)

441

1,630

99

(22,929)

Change in fair value of warrant liabilities

(337)

337

(Loss) income before income taxes

(49,180)

337

441

1,630

99

(46,673)

Income tax (expense) benefit

(17,021)

(3)

(5)

(17)

(1)

17,261

214

Net (loss) income

(66,201)

334

436

1,613

98

17,261

(46,459)

Dividends on Series A Convertible Preferred Stock

(4,015)

(4,015)

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

$ (70,216)

$ 334

$ 436

$ 1,613

$ 98

$ 17,261

$ (50,474)

Diluted loss per share

$ (4.89)

$ (3.51)

Shares used for diluted calculation

14,371,787

14,371,787

Six months ended June 30, 2023

($ in thousands, except per share amounts)

As reported

Gain on
change in
fair value of
warrant
liabilities

LIFO

Transaction costs

Severance
and
transition
costs

Impairment
charge

Storm
Reserve

Adjusted

Costs applicable to revenue

$ 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)

Income before income taxes

4,447

(856)

1,387

471

653

629

300

7,031

Income tax expense

(1,163)

(296)

(101)

(124)

(119)

(106)

(1,909)

Net income (loss)

3,284

(856)

1,091

370

529

510

194

5,122

Dividends on Series A Convertible Preferred Stock

(2,380)

(2,380)

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

$ 904

$ (856)

$ 1,091

$ 370

$ 529

$ 510

$ 194

$ 2,742

Diluted income per share

$ –

$ 0.13

Shares used for diluted calculation

13,188,135

13,188,135

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/lazydays-reports-second-quarter-2024-results-302224068.html

SOURCE Lazydays