Lazydays (LAZY) - 2024 Q2 - Quarterly Report

Financial Performance - Total revenues for Q2 2024 were $238.694 million, a decrease of 22.6$308.380 million in Q2 2023[7] - New vehicle retail sales amounted to $143.333 million, down 21.6$182.752 million in the same quarter last year[7] - Pre-owned vehicle retail sales decreased by 32.9% to $60.908 million from$90.991 million year-over-year[7] - Gross profit for Q2 2024 was $47.404 million, a decline of 30$67.723 million in Q2 2023[7] - The company reported a net loss of $44.221 million for Q2 2024, compared to a net income of$3.560 million in Q2 2023[7] - Basic loss per share for Q2 2024 was $(3.22), compared to earnings of$0.12 per share in Q2 2023[7] - Total revenues for the six months ended June 30, 2024, were $509,280, a decrease of$94,756 or 15.7% compared to $604,036 in 2023[86] - New vehicle retail revenues decreased by$63,475 or 17.7% to $296,024 from$359,499 year-over-year[86] - Pre-owned vehicle retail revenues fell by $35,282 or 20.1$140,484 compared to $175,766 in the previous year[86] - Total gross profit for the six months was$85,170, down $46,444 or 35.3$131,614 in 2023[86] Assets and Liabilities - Total assets decreased to $772.368 million as of June 30, 2024, down from$937.739 million at the end of 2023[5] - Total liabilities were $624.162 million, a reduction from$724.549 million at the end of 2023[5] - Cash reserves decreased to $42.022 million from$58.085 million at the end of 2023[5] - The company’s retained earnings showed a significant decline, reaching $(20.048) million compared to$48.137 million at the end of 2023[5] - As of June 30, 2024, total stockholders' equity was $87,998, a decrease from$133,542 as of March 31, 2024, reflecting a net loss of $44,221 for the quarter[8] Cash Flow and Operating Activities - Net cash provided by operating activities for the six months ended June 30, 2024, was$101,315, significantly higher than $10,705 for the same period in 2023[14] - Cash paid for interest during the six months ended June 30, 2024, was$17,700, compared to $2,672 in the same period of 2023[15] - Total adjustments to reconcile net loss to net cash provided by operating activities were$167,516 for the six months ended June 30, 2024[14] - The company reported a net decrease in cash of $16,063 for the six months ended June 30, 2024, compared to a decrease of$37,514 in the same period of 2023[14] Inventory and Sales Performance - Total inventories decreased from $480.7 million as of December 31, 2023, to$314.4 million as of June 30, 2024[31] - Retail units sold for new vehicles increased by 132 units or 3.3% to 4,091, while pre-owned vehicle retail units sold decreased by 76 units or 2.8% to 2,616[86] - The average selling price for new vehicles fell by $18,417 or 20.3$72,389 from $90,806[86] - The company achieved a pre-owned to new ratio of 0.6:1 in the quarter ended June 30, 2024, with a strategic goal to reach a 1:1 ratio[97] Debt and Financing - As of June 30, 2024, there was$331 million outstanding on the Floor Plan Line of Credit at an interest rate of 7.9%[39] - The company entered into a Limited Waiver with lenders under the M&T Credit Agreement, temporarily waiving certain covenants[39] - Future maturities of long-term debt total $73,869 thousand, with$5,578 thousand due in the remainder of 2024[49] - The company entered into a $50 million term loan on December 29, 2023, with an interest rate of 12$30 million to address recent industry challenges[23] - The company is uncertain about the timing of industry recovery and anticipates unit sales may remain below long-term averages[22] Stock and Compensation - Stock-based compensation for the six months ended June 30, 2024, was $1,104, down from$1,639 in the same period of 2023[14] - The company issued 211,926 restricted stock units with a weighted-average grant date fair value of $4.31 during the six months ended June 30, 2024[72] - The company recognized stock-based compensation related to the Employee Stock Purchase Plan (ESPP) of$112,855 for the six months ended June 30, 2024[69] Market and Future Outlook - The company anticipates that future retail demand for RVs will exceed historical pre-pandemic levels due to ongoing consumer interest in the RV lifestyle[139] - The revised forecast for 2024 RV wholesale shipments is projected to range between 329,900 to 359,100 units, with a median of 344,000 units[138]