TAMPA, Fla., Nov. 3, 2023 — Lazydays (NasdaqCM: LAZY) today reported financial results for the third quarter ended September 30, 2023.
Third quarter 2023 revenue decreased to $280.7 million from $333.8 million in the third quarter of 2022.
Third quarter 2023 net loss was $(5.6) million compared to net income of $7.7 million for the same period in 2022. Third quarter 2023 adjusted net loss, a non-GAAP measure, was $(2.9) million compared to net income of $14.4 million for the same period in 2022. Third quarter 2023 net loss per diluted share was $(0.48) compared to net income per diluted share of $0.35 for the same period in 2022. Adjusted third quarter 2023 net loss per diluted share was $(0.29) compared to net income per diluted share of $0.54 for the same period in 2022.
As shown in the attached non-GAAP reconciliation tables, the third quarter of 2023 adjusted results exclude a net non-core charge of $0.19 per diluted share related to our LIFO adjustment, acquisition expenses and severance and transition costs. The third quarter of 2022 adjusted results exclude a net non-core charge of $0.19 related to the effects of changes in fair value of warrant liabilities, our LIFO adjustment and severance and transition costs.
Year to date net loss was $(2.3) million compared to net income of $67.8 million for the same period in 2022. Year to date 2023 adjusted net income was $2.2 million compared to net income of $66.1 million for the same period in 2022. Year to date 2023 net loss per diluted share was $(0.49) compared to net income per diluted share of $2.39 for the same period in 2022, and adjusted net loss per diluted share was $(0.07) compared to adjusted net income per diluted share of $2.74 for the same period in 2022.
The adjusted year to date results for the nine months of 2023 exclude a net non-core charge of $0.42 related to the effects of changes in the fair value of warrant liabilities, our LIFO adjustment, acquisition expenses, severance and 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 $0.35 related to the effects of changes in the fair value of warrant liabilities, our LIFO adjustment, acquisition expenses and severance and transition costs.
Corporate Development
As previously announced, during the quarter we acquired Buddy Gregg Motorhomes in Knoxville, Tennessee as well as Century RV in Longmont, Colorado. We also opened our Wilmington, Ohio greenfield location. We estimate these stores will add $125 million in revenues at steady state.
In July we closed our Maryville, Tennessee location due to the expansion of the Alcoa Highway by the Tennessee DOT. In September we closed our Burns Harbor, Indiana location, consolidating operations into our nearby Elkhart, Indiana location.
Earlier this week we announced the opening of our Fort Pierce, Florida greenfield and we remain on track to open our Surprise, Arizona greenfield location in the fourth quarter.
Balance Sheet Update
We ended the third quarter with total estimated liquidity of $67.8 million including cash of $32.9 million, $4.6 million of availability on our revolving credit facility and $30.2 million in available from undrawn floor plan capacity and our floor plan offset account. Additionally, we hold approximately $95.5 million of unfinanced real estate that we estimate could provide $80.6 million of additional liquidity.
On September 12, 2023, we filed a registration statement on Form S-1, as amended, with the Securities and Exchange Commission for a rights offering. The Rights Offering was made effective by the SEC October 23, 2023 and the subscription period will expire on November 14, 2023. Assuming the rights offering is fully subscribed, we estimate the total purchase price of the shares offered in the rights offering, representing the aggregate net proceeds received by us, will be approximately $99.6 million. We expect the net proceeds of the offering will be used for our growth initiatives including acquisitions and new business development activities and general corporate purposes, which may include repaying or refinancing some or all of our existing or future debt facilities.
Conference Call Information
We have scheduled a conference call at 8:30 AM Eastern Time on Friday, November 3, 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.
Contact:
investors@lazydays.com
Results of Operations
|
Three months ended |
Nine months ended |
||||||
|
(In thousands except share and per share |
2023 |
2022 |
% |
2023 |
2022 |
% |
|
|
Revenue |
|||||||
|
New vehicle retail |
$ 172,898 |
$ 203,456 |
(15.0) % |
$ 532,397 |
$ 640,078 |
(16.8) % |
|
|
Pre-owned vehicle retail |
75,059 |
90,725 |
(17.3) % |
250,825 |
319,655 |
(21.5) % |
|
|
Vehicle wholesale |
2,056 |
6,622 |
(69.0) % |
5,480 |
18,850 |
(70.9) % |
|
|
Finance and insurance |
16,462 |
18,574 |
(11.4) % |
51,085 |
61,591 |
(17.1) % |
|
|
Service, body and parts and other |
14,207 |
14,381 |
(1.2) % |
44,931 |
43,297 |
3.8 % |
|
|
Total revenue |
280,682 |
333,758 |
(15.9) % |
884,718 |
1,083,471 |
(18.3) % |
|
|
Cost applicable to revenues |
|||||||
|
New vehicle retail |
154,181 |
169,445 |
(9.0) % |
465,656 |
517,160 |
(10.0) % |
|
|
Pre-owned vehicle retail |
59,693 |
70,469 |
(15.3) % |
199,646 |
242,379 |
(17.6) % |
|
|
Vehicle wholesale |
2,026 |
6,813 |
(70.3) % |
5,432 |
19,226 |
(71.7) % |
|
|
Finance and insurance |
569 |
676 |
(15.8) % |
2,072 |
2,216 |
(6.5) % |
|
|
Service, body and parts and other |
7,109 |
6,887 |
3.2 % |
21,807 |
21,263 |
2.6 % |
|
|
LIFO |
2,663 |
3,904 |
(31.8) % |
4,049 |
8,230 |
(50.8) % |
|
|
Total cost applicable to revenue |
226,241 |
258,194 |
(12.4) % |
698,662 |
810,474 |
(13.8) % |
|
|
Gross profit |
54,441 |
75,564 |
(28.0) % |
186,056 |
272,997 |
(31.8) % |
|
|
Depreciation and amortization |
4,602 |
4,202 |
9.5 % |
13,464 |
12,338 |
9.1 % |
|
|
Selling, general, and administrative expenses |
48,250 |
55,541 |
(13.1) % |
152,262 |
173,249 |
(12.1) % |
|
|
Income from operations |
1,589 |
15,821 |
(90.0) % |
20,330 |
87,410 |
(76.7) % |
|
|
Other income (expense) |
|||||||
|
Floor plan interest expense |
(6,258) |
(2,621) |
138.8 % |
(17,624) |
(5,063) |
248.1 % |
|
|
Other interest expense |
(2,701) |
(1,982) |
36.3 % |
(6,484) |
(5,837) |
11.1 % |
|
|
Change in fair value of warrant liabilities |
– |
(521) |
(100.0) % |
856 |
10,671 |
(92.0) % |
|
|
Gain (loss) on sale of property and equipment |
(21) |
– |
NM |
(21) |
– |
NM |
|
|
Total other (expense) income, net |
(8,980) |
(5,124) |
75.3 % |
(23,273) |
(229) |
NM |
|
|
Income (loss) before income tax expense |
(7,391) |
10,697 |
(169.1) % |
(2,943) |
87,181 |
(103.4) % |
|
|
Income tax benefit (expense) |
1,805 |
(3,032) |
(159.5) % |
642 |
(19,388) |
(103.3) % |
|
|
Net income (loss) |
(5,586) |
7,665 |
(172.9) % |
(2,301) |
67,793 |
(103.4) % |
|
|
Dividends on Series A convertible preferred |
(1,210) |
(1,210) |
– % |
(3,590) |
(3,590) |
– % |
|
|
Net income (loss) and comprehensive income |
$ (6,796) |
$ 6,455 |
(205.3) % |
$ (5,891) |
$ 64,203 |
(109.2) % |
|
|
EPS: |
|||||||
|
Basic |
$ (0.48) |
$ 0.38 |
(226.3) % |
$ (0.44) |
$ 3.57 |
(112.3) % |
|
|
Diluted |
$ (0.48) |
$ 0.35 |
(237.1) % |
$ (0.49) |
$ 2.39 |
(120.5) % |
|
|
Weighted average shares outstanding: |
|||||||
|
Basic |
14,263,367 |
11,132,317 |
28.1 % |
13,470,219 |
11,930,649 |
12.9 % |
|
|
Diluted |
14,263,367 |
11,883,985 |
20.0 % |
13,470,219 |
13,351,591 |
0.9 % |
|
|
NM – not Meaningful |
|||||||
Total Results Summary
|
Three months ended |
Nine months ended |
||||||||
|
2023 |
2022 |
Change |
2023 |
2022 |
Change |
||||
|
Gross profit margins |
|||||||||
|
New vehicle retail |
10.8 % |
16.7 % |
(590) |
bps |
12.5 % |
19.2 % |
(670) |
bps |
|
|
Pre-owned vehicle retail |
20.5 % |
22.3 % |
(180) |
bps |
20.4 % |
24.2 % |
(380) |
bps |
|
|
Vehicle wholesale |
1.5 % |
(2.9) % |
440 |
bps |
0.9 % |
(2.0) % |
290 |
bps |
|
|
Finance and insurance |
96.5 % |
96.4 % |
10 |
bps |
95.9 % |
96.4 % |
(50) |
bps |
|
|
Service, body and parts and other |
50.0 % |
52.1 % |
(210) |
bps |
51.5 % |
50.9 % |
60 |
bps |
|
|
Total gross profit margin |
19.4 % |
22.6 % |
(320) |
bps |
21.0 % |
25.2 % |
(420) |
bps |
|
|
Total gross profit margin (excluding |
20.3 % |
23.8 % |
(350) |
bps |
21.5 % |
26.0 % |
(450) |
bps |
|
|
Retail units sold |
|||||||||
|
New vehicle retail |
2,046 |
2,377 |
(331) |
6,005 |
7,102 |
(1,097) |
|||
|
Pre-owned vehicle retail |
1,162 |
1,335 |
(173) |
3,854 |
4,410 |
(556) |
|||
|
Total retail units sold |
3,208 |
3,712 |
(504) |
9,859 |
11,512 |
(1,653) |
|||
|
Average selling price per retail unit |
|||||||||
|
New vehicle retail |
$ 84,505 |
$ 85,594 |
$ (1,089) |
$ 88,659 |
$ 90,126 |
$ (1,467) |
|||
|
Pre-owned vehicle retail |
64,595 |
67,959 |
(3,364) |
65,082 |
72,484 |
(7,402) |
|||
|
Average gross profit per retail unit |
|||||||||
|
New vehicle retail |
$ 9,148 |
$ 14,308 |
$ (5,160) |
$ 11,114 |
$ 17,307 |
$ (6,193) |
|||
|
Pre-owned vehicle retail |
13,224 |
15,174 |
(1,950) |
13,279 |
17,523 |
(4,244) |
|||
|
Finance and insurance |
4,954 |
4,822 |
132 |
4,972 |
5,158 |
(186) |
|||
|
Revenue mix |
|||||||||
|
New vehicle retail |
61.6 % |
61.0 % |
60.2 % |
59.1 % |
|||||
|
Pre-owned vehicle retail |
26.7 % |
27.2 % |
28.4 % |
29.5 % |
|||||
|
Vehicle wholesale |
0.7 % |
2.0 % |
0.6 % |
1.7 % |
|||||
|
Finance and insurance |
5.9 % |
5.6 % |
5.8 % |
5.7 % |
|||||
|
Service, body and parts and other |
5.1 % |
4.3 % |
5.1 % |
4.0 % |
|||||
|
100.0 % |
100.0 % |
100.0 % |
100.0 % |
||||||
|
Gross profit mix |
|||||||||
|
New vehicle retail |
34.4 % |
45.0 % |
35.9 % |
45.0 % |
|||||
|
Pre-owned vehicle retail |
28.2 % |
26.8 % |
27.5 % |
28.3 % |
|||||
|
Vehicle wholesale |
0.1 % |
(0.3) % |
– % |
(0.1) % |
|||||
|
Finance and insurance |
29.2 % |
23.7 % |
26.3 % |
21.7 % |
|||||
|
Service, body and parts and other |
13.0 % |
9.9 % |
12.4 % |
8.1 % |
|||||
|
LIFO |
(4.9) % |
(5.2) % |
(2.2) % |
(3.0) % |
|||||
|
100.0 % |
100.0 % |
100.0 % |
100.0 % |
||||||
Other Metrics
|
Adjusted |
As Reported |
Adjusted |
As Reported |
||||||||
|
Three months |
Three months |
Nine months |
Nine months |
||||||||
|
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
||||
|
SG&A as a % of revenue |
16.7 % |
16.5 % |
17.2 % |
16.6 % |
16.8 % |
15.9 % |
17.2 % |
16.0 % |
|||
|
SG&A as % of gross profit, excluding LIFO |
82.1 % |
77.0 % |
84.5 % |
77.5 % |
78.3 % |
65.2 % |
80.1 % |
65.4 % |
|||
|
Income from operations as a % of revenue |
2.0 % |
6.0 % |
0.6 % |
4.7 % |
3.1 % |
8.9 % |
2.3 % |
8.1 % |
|||
|
Income from operations as a % of gross |
9.8 % |
28.1 % |
2.8 % |
22.1 % |
14.6 % |
36.4 % |
10.7 % |
33.0 % |
|||
|
Income (loss) before income taxes as % of |
(1.2) % |
4.6 % |
(2.6) % |
3.2 % |
0.4 % |
7.9 % |
(0.3) % |
8.0 % |
|||
|
Net income (loss) as a % of revenue |
(1.0) % |
4.3 % |
(2.0) % |
2.3 % |
0.3 % |
6.1 % |
(0.3) % |
6.3 % |
|||
Other Highlights
|
As of |
||||
|
September 30, 2023 |
December 31, 2022 |
|||
|
Store Count |
||||
|
Dealerships |
21 |
18 |
||
|
Days Supply* |
||||
|
New vehicle inventory |
171 |
250 |
||
|
Pre-owned vehicle inventory |
133 |
78 |
||
|
* Days supply calculated based on current inventory levels and a 90 day historical average cost of sales level. |
||||
Financial Covenants
|
As of |
||||
|
Requirement |
September 30, 2023 |
|||
|
Fixed charge coverage ratio |
Not less than 1.25 to 1 |
1.63 |
||
|
Leverage ratio |
Not more than 3.0 to 1 |
3.00 |
||
|
Current ratio |
Not less than 1.15 to 1 |
1.16 |
Same-Store Results Summary
|
Three months ended |
Nine months ended |
|||||||||||
|
(In thousands, except vehicle and |
2023 |
2022 |
Change |
2023 |
2022 |
Change |
||||||
|
Revenues |
||||||||||||
|
New vehicle retail |
$ 150,103 |
$ 187,323 |
(19.9) % |
$ 472,339 |
$ 601,706 |
(21.5) % |
||||||
|
Pre-owned vehicle retail |
66,507 |
85,931 |
(22.6) % |
227,935 |
305,378 |
(25.4) % |
||||||
|
Vehicle wholesale |
2,054 |
6,615 |
(68.9) % |
5,233 |
18,790 |
(72.2) % |
||||||
|
Finance and insurance |
13,915 |
17,331 |
(19.7) % |
45,257 |
58,589 |
(22.8) % |
||||||
|
Service, body and parts and other |
12,565 |
13,782 |
(8.8) % |
40,284 |
41,701 |
(3.4) % |
||||||
|
Total revenues |
245,144 |
310,982 |
(21.2) % |
791,048 |
1,026,164 |
(22.9) % |
||||||
|
Gross profit |
||||||||||||
|
New vehicle retail |
15,690 |
31,253 |
(49.8) % |
58,899 |
115,661 |
(49.1) % |
||||||
|
Pre-owned vehicle retail |
13,279 |
19,086 |
(30.4) % |
46,109 |
73,684 |
(37.4) % |
||||||
|
Vehicle wholesale |
31 |
(191) |
NM |
51 |
(373) |
NM |
||||||
|
Finance and insurance |
13,437 |
16,702 |
(19.5) % |
43,400 |
56,462 |
(23.1) % |
||||||
|
Service, body and parts and other |
6,537 |
7,023 |
(6.9) % |
20,651 |
21,050 |
(1.9) % |
||||||
|
LIFO |
(2,663) |
(3,903) |
(31.8) % |
(4,049) |
(8,230) |
(50.8) % |
||||||
|
Total gross profit |
46,311 |
69,970 |
(33.8) % |
165,061 |
258,254 |
(36.1) % |
||||||
|
Gross profit margins |
||||||||||||
|
New vehicle retail |
10.5 % |
16.7 % |
(620) |
bps |
12.5 % |
19.2 % |
(670) |
bps |
||||
|
Pre-owned vehicle retail |
20.0 % |
22.2 % |
(220) |
bps |
20.2 % |
24.1 % |
(390) |
bps |
||||
|
Vehicle wholesale |
1.5 % |
(2.9) % |
440 |
bps |
1.0 % |
(2.0) % |
300 |
bps |
||||
|
Finance and insurance |
96.6 % |
96.4 % |
20 |
bps |
95.9 % |
96.4 % |
(50) |
bps |
||||
|
Service, body and parts and other |
52.0 % |
51.0 % |
100 |
bps |
51.3 % |
50.5 % |
80 |
bps |
||||
|
Total gross profit margin |
18.9 % |
22.5 % |
(360) |
bps |
20.9 % |
25.2 % |
(430) |
bps |
||||
|
Total gross profit margin |
20.0 % |
23.8 % |
(380) |
bps |
21.4 % |
26.0 % |
(460) |
bps |
||||
|
Retail units sold |
||||||||||||
|
New vehicle retail |
1,683 |
2,121 |
(20.7) % |
5,109 |
6,471 |
(21.0) % |
||||||
|
Pre-owned vehicle retail |
1,011 |
1,227 |
(17.6) % |
3,404 |
4,098 |
(16.9) % |
||||||
|
Total retail units sold |
2,694 |
3,348 |
(19.5) % |
8,513 |
10,569 |
(19.5) % |
||||||
|
Average selling price per retail unit |
||||||||||||
|
New vehicle retail |
$ 89,188 |
$ 88,318 |
1.0 % |
$ 92,452 |
$ 92,985 |
(0.6) % |
||||||
|
Pre-owned vehicle retail |
$ 65,783 |
$ 70,033 |
(6.1) % |
$ 66,961 |
$ 74,519 |
(10.1) % |
||||||
|
Average gross profit per retail unit |
||||||||||||
|
New vehicle retail |
$ 9,323 |
$ 14,735 |
(36.7) % |
$ 11,528 |
$ 17,874 |
(35.5) % |
||||||
|
Pre-owned vehicle retail |
$ 13,135 |
$ 15,555 |
(15.6) % |
$ 13,546 |
$ 17,981 |
(24.7) % |
||||||
|
Finance and insurance |
$ 4,988 |
$ 4,989 |
– % |
$ 5,098 |
$ 5,342 |
(4.6) % |
||||||
|
NM – not meaningful |
||||||||||||
Condensed Consolidated Balance Sheets
|
(In thousands) |
As of September 30, 2023 |
As of December 31, 2022 |
||
|
Current assets |
||||
|
Cash |
$ 32,922 |
$ 61,687 |
||
|
Receivables, net |
21,823 |
25,053 |
||
|
Inventories |
385,329 |
378,881 |
||
|
Other current assets |
12,421 |
11,228 |
||
|
Total current assets |
452,495 |
476,849 |
||
|
Long-term assets |
||||
|
Property and equipment, net |
247,752 |
158,991 |
||
|
Goodwill and intangible assets, net |
184,551 |
165,125 |
||
|
Other assets |
30,745 |
29,753 |
||
|
Total assets |
$ 915,543 |
$ 830,718 |
||
|
Current liabilities |
||||
|
Floor plan notes payable |
334,218 |
348,735 |
||
|
Other current liabilities |
56,092 |
50,890 |
||
|
Total current liabilities |
390,310 |
399,625 |
||
|
Long-term liabilities |
||||
|
Financing liability, non-current portion, net |
92,073 |
89,770 |
||
|
Revolving line of credit |
45,000 |
– |
||
|
Long-term debt, non-current portion, net |
28,513 |
10,131 |
||
|
Other long-term liabilities |
38,824 |
39,197 |
||
|
Total liabilities |
594,720 |
538,723 |
||
|
Series A Convertible Preferred Stock |
54,983 |
54,983 |
||
|
Stockholders’ Equity |
265,840 |
237,012 |
||
|
Total liabilities and stockholders’ equity |
$ 915,543 |
$ 830,718 |
Condensed Statements of Cash Flows
|
Nine months ended September 30, |
||||
|
(In thousands) |
2023 |
2022 |
||
|
Cash Flows From Operating Activities |
||||
|
Net income (loss) |
$ (2,301) |
$ 67,793 |
||
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) |
||||
|
Stock based compensation |
2,067 |
2,083 |
||
|
Bad debt expense |
9 |
76 |
||
|
Depreciation of property and equipment |
7,992 |
6,893 |
||
|
Amortization of intangible assets |
5,501 |
5,445 |
||
|
Amortization of debt discount |
327 |
248 |
||
|
Non-cash lease expense |
201 |
131 |
||
|
Loss (gain) on sale of property and equipment |
21 |
(18) |
||
|
Deferred income taxes |
(116) |
– |
||
|
Change in fair value of warrant liabilities |
(856) |
(10,671) |
||
|
Tax benefit related to stock-based awards |
– |
– |
||
|
Impairment charges |
629 |
– |
||
|
Changes in operating assets and liabilities (net of acquisitions): |
||||
|
Receivables |
3,221 |
5,884 |
||
|
Inventories |
18,427 |
(68,046) |
||
|
Prepaid expenses and other |
(1,196) |
(1,027) |
||
|
Income tax receivable/payable |
(621) |
(4,584) |
||
|
Other assets |
(169) |
(591) |
||
|
Accounts payable |
5,511 |
(5,590) |
||
|
Accrued expenses and other current liabilities |
1,787 |
(5,534) |
||
|
Total Adjustments |
42,735 |
(75,301) |
||
|
Net Cash Provided By (Used In) Operating Activities |
40,434 |
(7,508) |
||
|
Nine months ended September 30, |
||||
|
(In thousands) |
2023 |
2022 |
||
|
Net Cash Provided By (Used In) Operating Activities |
||||
|
As reported |
$ 40,434 |
$ (7,508) |
||
|
Net (repayments) borrowings on floor plan notes payable |
(13,967) |
89,835 |
||
|
Minus borrowings on floor plan notes payable associated with acquired new inventory |
(19,726) |
– |
||
|
Plus net increase to floor plan offset account |
– |
– |
||
|
Net cash provided by operating activities, as adjusted |
$ 6,741 |
$ 82,327 |
||
Reconciliation of Non-GAAP Measures
|
Three months ended September 30, 2023 |
|||||
|
($ in thousands, except per share |
As reported |
LIFO |
Acquisition |
Severance |
Adjusted |
|
Costs applicable to revenues |
$ 226,241 |
$ (2,663) |
$ – |
$ – |
$ 223,578 |
|
Selling, general and administrative |
48,250 |
(727) |
(625) |
46,898 |
|
|
Income from operations |
1,589 |
2,663 |
727 |
625 |
5,605 |
|
Income (loss) before income tax |
$ (7,391) |
$ 2,663 |
$ 727 |
$ 625 |
$ (3,376) |
|
Income tax benefit (expense) |
1,805 |
(873) |
(238) |
(205) |
489 |
|
Net income (loss) |
$ (5,586) |
$ 1,790 |
$ 489 |
$ 420 |
$ (2,887) |
|
Diluted net loss per share |
$ (0.48) |
$ (0.29) |
|||
|
Shares used for diluted calculation |
14,263,367 |
||||
|
Three months ended September 30, 2022 |
||||||
|
($ in thousands, except per |
As reported |
Gain on |
LIFO |
Acquisition |
Severance |
Adjusted |
|
Costs applicable to revenues |
$ 258,194 |
$ – |
$ (3,904) |
$ – |
$ – |
$ 254,290 |
|
Selling, general and |
55,541 |
– |
– |
– |
(377) |
55,164 |
|
Income from operations |
15,821 |
– |
3,904 |
– |
377 |
20,102 |
|
Gain on change in fair value |
(521) |
521 |
– |
– |
– |
– |
|
Income (loss) before income |
$ 10,697 |
$ 521 |
$ 3,904 |
$ – |
$ 377 |
15,499 |
|
Income tax expense |
(3,032) |
– |
1,758 |
50 |
92 |
(1,132) |
|
Net income |
$ 7,665 |
$ 521 |
$ 5,662 |
$ 50 |
$ 469 |
$ 14,367 |
|
Diluted earnings per share |
$ 0.35 |
$ 0.54 |
||||
|
Shares used for diluted |
11,883,985 |
|||||
|
Nine months ended September 30, 2023 |
||||||||
|
($ in thousands, |
As reported |
Gain on |
LIFO |
Acquisition |
Severance |
Impairment |
Storm |
Adjusted |
|
Costs applicable to |
$ 698,662 |
$ – |
$ (4,049) |
$ – |
$ – |
$ – |
$ – |
$ 694,613 |
|
Selling, general |
152,262 |
– |
– |
(1,198) |
(1,278) |
(629) |
(300) |
148,857 |
|
Income from |
20,330 |
– |
4,049 |
1,198 |
1,278 |
629 |
300 |
27,785 |
|
Gain on change in |
856 |
(856) |
– |
– |
– |
– |
– |
|
|
(Loss) income |
$ (2,943) |
$ (856) |
$ 4,049 |
$ 1,198 |
$ 1,278 |
$ 629 |
$ 300 |
$ 3,656 |
|
Income tax benefit |
642 |
– |
(1,140) |
(337) |
(360) |
(119) |
(106) |
(1,420) |
|
Net (loss) income |
(2,301) |
$ (856) |
$ 2,909 |
$ 861 |
$ 918 |
$ 510 |
$ 194 |
$ 2,236 |
|
Diluted net loss |
$ (0.49) |
$ (0.07) |
||||||
|
Shares used for |
13,742,180 |
|||||||
|
Nine months ended September 30, 2022 |
||||||
|
($ in thousands, except per share |
As reported |
Gain on |
LIFO |
Acquisition |
Severance |
Adjusted |
|
Costs applicable to revenues |
$ 810,474 |
$ – |
(8,230) |
$ – |
$ – |
$ 802,244 |
|
Selling, general and administrative |
173,249 |
– |
– |
(121) |
(600) |
172,528 |
|
Income from operations |
87,410 |
– |
8,230 |
121 |
600 |
96,361 |
|
Gain on change in fair value of warrant |
10,671 |
(10,671) |
– |
– |
– |
– |
|
Income (loss) before income taxes |
$ 87,181 |
$ (10,671) |
$ 8,230 |
$ 121 |
$ 600 |
$ 85,461 |
|
Income tax expense |
(19,388) |
– |
– |
– |
– |
(19,388) |
|
Net income |
67,793 |
$ (10,671) |
$ 8,230 |
$ 121 |
$ 600 |
$ 66,073 |
|
Diluted earnings per share |
$ 2.39 |
$ 2.74 |
||||
|
Shares used for diluted calculation |
13,351,591 |
|||||
|
* In periods where the change in fair value of warrants is a gain, the diluted EPS calculation is not affected by this line item. |
||||||
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SOURCE Lazydays Holdings, Inc.