Lazydays’ Q3 Financial Performance Reflects Soft Market – RVBusiness – Breaking RV Industry News

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TAMPA, Fla. — Lazydays (NasdaqCM: LAZY) today reported financial results for the third quarter ended Sept. 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 was shown in an 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 the company’s 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, its 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, the company’s 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, its LIFO adjustment, acquisition expenses and severance and transition costs.

Corporate Development

As previously announced, during the quarter Lazydays acquired Buddy Gregg Motorhomes in Knoxville, Tenn., as well as Century RV in Longmont, Colo. Lazydays also opened its Wilmington, Ohio, greenfield location. Company officials estimate these stores will add $125 million in revenues at steady state.

In July Lazydays closed its Maryville, Tenn., location due to the expansion of the Alcoa Highway by the Tennessee DOT. In September Lazydays closed its Burns Harbor, Ind., location, consolidating operations into its nearby Elkhart, Ind., location.

Earlier this week Lazydays announced the opening of its Fort Pierce, Fla., greenfield and the company remains on track to open its Surprise, Ariz., greenfield location in the fourth quarter.

Balance Sheet Update

Lazydays ended the third quarter with total estimated liquidity of $67.8 million including cash of $32.9 million, $4.6 million of availability on its revolving credit facility and $30.2 million in available from undrawn floor plan capacity and floor plan offset account. Additionally, Lazydays holds approximately $95.5 million of unfinanced real estate that it estimates could provide $80.6 million of additional liquidity.

On Sept. 12, 2023, Lazydays 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 Oct. 23, 2023 and the subscription period will expire on Nov. 14, 2023. Assuming the rights offering is fully subscribed, company officials estimate the total purchase price of the shares offered in the rights offering, representing the aggregate net proceeds received by Lazydays, will be approximately $99.6 million. Lazydays expects the net proceeds of the offering will be used for company growth initiatives including acquisitions and new business development activities and general corporate purposes, which may include repaying or refinancing some or all of the company’s existing or future debt facilities.

Conference Call Information

Lazydays scheduled a conference call at 8:30 a.m., Eastern Time, on Friday, Nov. 3, 2023 that was also to be broadcast live over the internet. For replay, visit https://www.lazydays.com/investor-relations.

About Lazydays

Lazydays has been a prominent player in the RV industry since its inception in 1976, earning a stellar reputation for delivering exceptional RV sales, service, and ownership experiences. The company’s 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, Lazydays is growing its network through both acquisitions and new builds. Its 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.

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

Source: https://rvbusiness.com/lazydays-q3-financial-performance-reflects-soft-market/