LAZYDAYS REPORTS FIRST QUARTER 2025 FINANCIAL RESULTS
TAMPA, Fla., May 15, 2025 /PRNewswire/ -- Lazydays Holdings, Inc. (NasdaqCM: GORV) ("Lazydays," the "Company" or "we") today reports financial results for the first quarter ended March 31, 2025.
Ron Fleming, Interim CEO, said, "We made meaningful progress against our stated priorities in the first quarter of 2025. Our operating results were much improved as compared to our results in the fourth quarter and first quarter of 2024, with a notable increase in gross profit and greater gross profit margins across all product lines. Additionally, we completed the strategic divestiture of five dealership locations in the quarter, enabling us to enhance our cost structure and significantly de-lever our balance sheet by repaying approximately $145 million in debt. We are committed to continuing to execute our turnaround plan and to unlocking value for our shareholders."
Total revenue for the first quarter 2025 was $165.8 million compared to $270.1 million for the same period in 2024. Loss from operations for the first quarter 2025 was $2.3 million compared to $16.6 million for the same period in 2024. We recognized impairment charges of $2.9 million related to indefinite-lived intangible assets during the first quarter 2025. First quarter 2025 net loss was $9.5 million compared to net loss of $22.0 million for the same period in 2024. First quarter 2025 Adjusted EBITDA, a non-GAAP measure, was $(4.0) million compared to Adjusted EBITDA of $(18.2) million for the same period in 2024.* Net loss per diluted share for the first quarter 2025 was $0.09 compared to net loss per diluted share of $1.67 for the same period in 2024.
*Refer to the reconciliation of net income to Adjusted EBITDA under "Reconciliation of Non-GAAP Measures" in this press release.
Conference Call Information
We have scheduled a conference call at 8:30 AM Eastern Time on Thursday, May 15, 2025 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.
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.
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 other risks and uncertainties 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-K and from time to time in our other filings with the U.S. Securities and Exchange Commission. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements made herein and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and we disclaim any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law.
Contact:
[email protected]
Results of Operations | |||
Three Months Ended March 31, | |||
(In thousands, except share and per share data) | 2025 | 2024 | |
Revenue | |||
New vehicle retail | $ 97,519 | $ 152,691 | |
Pre-owned vehicle retail | 40,673 | 78,644 | |
Vehicle wholesale | 2,056 | 6,249 | |
Consignment vehicle | 1,489 | 466 | |
Finance and insurance | 11,502 | 18,329 | |
Service, body and parts and other | 12,576 | 13,741 | |
Total revenue | 165,815 | 270,120 | |
Cost applicable to revenue | |||
New vehicle retail | 86,672 | 147,055 | |
Pre-owned vehicle retail | 31,994 | 69,733 | |
Vehicle wholesale | 2,120 | 8,460 | |
Finance and insurance | 434 | 693 | |
Service, body and parts and other | 5,698 | 6,287 | |
LIFO | (4,945) | 126 | |
Total cost applicable to revenue | 121,973 | 232,354 | |
Gross profit | 43,842 | 37,766 | |
Depreciation and amortization | 4,582 | 5,461 | |
Selling, general, and administrative expenses | 38,629 | 48,886 | |
Impairment charges | 2,900 | — | |
Loss from operations | (2,269) | (16,581) | |
Other income (expense): | |||
Floor plan interest expense | (4,590) | (7,676) | |
Other interest expense | (6,169) | (4,523) | |
Change in fair value of warrant liabilities | 4,282 | — | |
Loss on sale of businesses, property and equipment | (459) | — | |
Total other expense, net | (6,936) | (12,199) | |
Loss before income taxes | (9,205) | (28,780) | |
Income tax (expense) benefit | (328) | 6,800 | |
Net loss | (9,533) | (21,980) | |
Dividends on Series A convertible preferred stock | — | (1,984) | |
Net loss and comprehensive loss attributable to common stock and | $ (9,533) | $ (23,964) | |
Loss per share: | |||
Basic | $ (0.09) | $ (1.67) | |
Diluted | $ (0.09) | $ (1.67) | |
Weighted average shares used for EPS calculations: | |||
Basic | 110,300,452 | 14,368,677 | |
Diluted | 110,300,452 | 14,368,677 | |
Other Metrics and Highlights | |||
Three Months Ended March 31, | |||
2025 | 2024 | ||
Gross profit margins | |||
New vehicle retail | 11.1 % | 3.7 % | |
Pre-owned vehicle retail | 21.3 % | 11.3 % | |
Vehicle wholesale | (3.1) % | (35.4) % | |
Consignment vehicle | 100.0 % | 100.0 % | |
Finance and insurance | 96.2 % | 96.2 % | |
Service, body and parts and other | 54.7 % | 54.2 % | |
Total gross profit margin | 26.4 % | 14.0 % | |
Total gross profit margin (excluding LIFO) | 23.5 % | 14.0 % | |
Retail units sold | |||
New vehicle retail | 1,143 | 2,055 | |
Pre-owned vehicle retail | 805 | 1,460 | |
Consignment vehicle | 200 | 6 | |
Total retail units sold | 2,148 | 3,521 | |
Average selling price per retail unit | |||
New vehicle retail | $ 85,318 | $ 74,263 | |
Pre-owned vehicle retail | 50,525 | 53,866 | |
Average gross profit per retail unit (excluding LIFO) | |||
New vehicle retail | $ 9,490 | $ 2,704 | |
Pre-owned vehicle retail | 10,781 | 6,103 | |
Finance and insurance | 5,153 | 4,919 | |
Revenue mix | |||
New vehicle retail | 58.8 % | 56.5 % | |
Pre-owned vehicle retail | 24.5 % | 29.1 % | |
Vehicle wholesale | 1.2 % | 2.3 % | |
Consignment vehicle | 0.9 % | 0.2 % | |
Finance and insurance | 6.9 % | 6.8 % | |
Service, body and parts and other | 7.7 % | 5.1 % | |
100.0 % | 100.0 % | ||
Gross profit mix | |||
New vehicle retail | 24.7 % | 14.9 % | |
Pre-owned vehicle retail | 19.8 % | 23.6 % | |
Vehicle wholesale | (0.1) % | (5.9) % | |
Consignment vehicle | 3.4 % | 1.2 % | |
Finance and insurance | 25.2 % | 46.7 % | |
Service, body and parts and other | 15.7 % | 19.7 % | |
LIFO | 11.3 % | (0.2) % | |
100.0 % | 100.0 % | ||
Condensed Consolidated Balance Sheets | |||
(In thousands) | March 31, 2025 | December 31, 2024 | |
ASSETS | |||
Current assets: | |||
Cash | $ 19,727 | $ 24,702 | |
Receivables, net of allowance for doubtful accounts | 26,363 | 22,318 | |
Inventories, net | 182,607 | 211,946 | |
Income tax receivable | 1,695 | 6,116 | |
Prepaid expenses and other | 6,066 | 1,823 | |
Current assets held for sale | 16,049 | 86,869 | |
Total current assets | 252,507 | 353,774 | |
Property and equipment, net | 171,033 | 174,324 | |
Operating lease right-of-use assets | 12,875 | 13,812 | |
Intangible assets, net | 50,806 | 54,957 | |
Other assets | 3,724 | 3,216 | |
Long-term assets held for sale | 18,563 | 75,747 | |
Total assets | $ 509,508 | $ 675,830 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 23,452 | $ 22,426 | |
Accrued expenses and other current liabilities | 31,780 | 31,211 | |
Floor plan notes payable, net of debt discount(1) | 210,920 | 306,036 | |
Current portion of financing liability | 2,880 | 2,792 | |
Current portion of revolving credit facility | 10,000 | 10,000 | |
Current portion of long-term debt | 346 | 1,168 | |
Current portion of operating lease liability | 3,366 | 3,711 | |
Current liabilities related to assets held for sale | 220 | 1,530 | |
Total current liabilities | 282,964 | 378,874 | |
Long-term liabilities: | |||
Financing liability, net of debt discount | 75,226 | 76,007 | |
Revolving credit facility | 17,844 | 20,344 | |
Long-term debt, net of debt discount | 12,338 | 27,417 | |
Related party debt, net of debt discount | 7,189 | 36,217 | |
Operating lease liability | 9,886 | 10,592 | |
Deferred income tax liability | 1,820 | 1,348 | |
Warrant liabilities | 1,427 | 5,709 | |
Other long-term liabilities | 6,721 | 6,721 | |
Long-term liabilities related to assets held for sale | 13,729 | 23,001 | |
Total liabilities | 429,144 | 586,230 | |
Stockholders' Equity | |||
Common stock | 10 | 10 | |
Additional paid-in capital | 261,762 | 261,465 | |
Treasury stock, at cost | (57,128) | (57,128) | |
Retained deficit | (124,280) | (114,747) | |
Total stockholders' equity | 80,364 | 89,600 | |
Total liabilities and stockholders' equity | $ 509,508 | $ 675,830 | |
(1) Includes floor plan notes payable associated with inventories classified as held for sale of $16.0 million as of March 31, 2025 and $86.8 million as of December 31, 2024. |
Statements of Cash Flows | |||
Three Months Ended March 31, | |||
(In thousands) | 2025 | 2024 | |
Operating Activities | |||
Net loss | $ (9,533) | $ (21,980) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Stock-based compensation | 297 | 509 | |
Bad debt expense | 263 | 58 | |
Depreciation of property and equipment | 3,330 | 3,189 | |
Amortization of intangible assets | 1,252 | 2,271 | |
Amortization of debt discount | 1,701 | 74 | |
Non-cash operating lease expense | (222) | (30) | |
Loss on sale of businesses, property and equipment | 459 | 29 | |
Deferred income taxes | 472 | (5,032) | |
Change in fair value of warrant liabilities | (4,282) | — | |
Impairment charges | 2,900 | — | |
Changes in operating assets and liabilities: | |||
Receivables | (4,308) | (4,608) | |
Inventories | 32,346 | 109,442 | |
Prepaid expenses and other | (4,155) | 1,193 | |
Income tax receivable | 4,421 | (1,612) | |
Other assets | (504) | (333) | |
Accounts payable, accrued expenses and other current liabilities | 1,595 | (2,930) | |
Net cash provided by operating activities | 26,032 | 80,240 | |
Investing Activities | |||
Net proceeds from sale of businesses, property and equipment | 113,947 | — | |
Purchases of property and equipment | (15) | (8,765) | |
Net cash provided by (used) in investing activities | 113,932 | (8,765) | |
Financing Activities | |||
Net repayments under M&T bank floor plan | (95,136) | (89,016) | |
Principal repayments on revolving credit facility | (2,500) | — | |
Principal repayments on long-term debt and finance liabilities | (47,303) | (1,176) | |
Loan issuance costs | — | (18) | |
Net cash used in financing activities | (144,939) | (90,210) | |
Net decrease in cash | (4,975) | (18,735) | |
Cash, beginning of period | 24,702 | 58,085 | |
Cash, end of period | $ 19,727 | $ 39,350 | |
Reconciliation of Non-GAAP Measures
EBITDA and Adjusted EBITDA
EBITDA, which is a non-GAAP financial measure, is defined as net income (loss) excluding interest expense, income tax expense (benefit) and depreciation and amortization expense. Adjusted EBITDA, which is a non-GAAP financial measure, is further adjusted to include floor plan interest expense and excludes stock-based compensation expense; LIFO adjustment; impairment charges; loss (gain) on sale of businesses, property and equipment; and change in fair value of warrant liabilities.
EBITDA and Adjusted EBITDA are not measures of financial performance under GAAP and should not be considered in isolation or as an alternative to net income (loss), cash flows from operating activities or any other measure determined in accordance with GAAP. The items excluded to calculate EBITDA and Adjusted EBITDA are significant components in understanding and assessing the Company's results of operations. The Company's EBITDA and Adjusted EBITDA may not be comparable to a similarly titled measure of another company because other entities may not calculate EBITDA and Adjusted EBITDA in the same manner.
The Company believes Adjusted EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare the Company's core operating results from period to period by removing (i) the impact of the Company's capital structure (interest expense from outstanding debt); (ii) tax consequences; (iii) asset base (depreciation, amortization and LIFO adjustments); (iv) the non-cash charges from asset impairments, stock-based compensation expense and change in fair value of warrant liabilities; and (v) gains or losses on the sale of businesses, property and equipment. The Company uses Adjusted EBITDA internally to monitor operating results and to evaluate the performance of its business.
The following table presents a reconciliation of net income to EBITDA and adjusted EBITDA for the periods indicated:
Three Months Ended March 31, | |||
(In thousands) | 2025 | 2024 | |
Net loss | $ (9,533) | $ (21,980) | |
Interest expense, net | 10,759 | 12,199 | |
Depreciation and amortization | 4,582 | 5,461 | |
Income tax expense (benefit) | 328 | (6,800) | |
EBITDA | 6,136 | (11,120) | |
Floor plan interest expense | (4,590) | (7,676) | |
LIFO adjustment | (4,945) | 126 | |
Loss on sale of businesses, property and equipment | 459 | — | |
Impairment charges | 2,900 | — | |
Gain on change in fair value of warrant liabilities | (4,282) | — | |
Stock-based compensation expense | 297 | 509 | |
Adjusted EBITDA | $ (4,025) | $ (18,161) | |
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SOURCE Lazydays RV