Lazydays (LAZY) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenue for Q1 2025 was $165.8 million, a decrease of 38.5% compared to $270.1 million in Q1 2024[12] - New vehicle retail revenue decreased to $97.5 million from $152.7 million, representing a decline of 36.1% year-over-year[12] - Gross profit for Q1 2025 was $43.8 million, an increase of 16.4% from $37.8 million in Q1 2024[12] - Net loss for Q1 2025 was $9.5 million, compared to a net loss of $22.0 million in Q1 2024, showing an improvement of 56.7%[12] - Total revenues for the three months ended March 31, 2025, were $165.8 million, a decrease of 38.6% compared to $270.1 million in the same period in 2024[149] - New vehicle retail revenue decreased by 36.1% to $97.5 million from $152.7 million year-over-year[149] - Pre-owned vehicle retail revenue fell by 48.3% to $40.7 million compared to $78.6 million in the prior year[149] - Total gross profit increased by 16.1% to $43.8 million, up from $37.8 million in the previous year[149] - Gross profit margin improved to 26.4%, an increase of 1,240 basis points from 14.0% in the same quarter last year[149] - The company reported a net loss attributable to common stockholders of $9.5 million for Q1 2025, compared to a net loss of $24.0 million in Q1 2024[77] - Basic loss per share for Q1 2025 was $(0.09), significantly improved from $(1.67) in Q1 2024[77] Cash Flow and Assets - Cash and cash equivalents decreased to $19.7 million as of March 31, 2025, down from $24.7 million at the end of 2024[10] - Total assets decreased to $509.5 million from $675.8 million at the end of 2024, a reduction of 24.6%[10] - The company reported a net cash provided by operating activities of $26.0 million for Q1 2025, down from $80.2 million in Q1 2024[17] - The company incurred impairment charges of $2.9 million in Q1 2025, reflecting ongoing adjustments in asset valuations[12] - As of March 31, 2025, the company had cash and cash equivalents of $20 million and total debt obligations of $349 million, including $210.9 million in floor plan notes payable[24] - The company recorded a non-cash impairment charge of $2.9 million for indefinite-lived intangible assets due to a decline in stock price and lower revenue projections[38] - The company closed on the sale of five facilities, receiving net proceeds of $113.9 million, which were used to repay $61.2 million of floor plan notes payable and $46.1 million of term loan and mortgage debt[43] - Inventories as of March 31, 2025, totaled $182.6 million, down from $211.9 million as of December 31, 2024[35] Debt and Liabilities - Total liabilities decreased to $429.1 million from $586.2 million, a decline of 26.8%[10] - The outstanding principal balance of the Revolving Credit Facility was $27,800,000 as of March 31, 2025[53] - The company had $210,900,000 outstanding on the Floor Plan Credit Facility at an interest rate of 6.93% as of March 31, 2025[56] - The company reported total debt contractual maturities of $52,228,000, with $8,846,000 due in the remainder of 2025[67] - Future contractual maturities of total debt amount to $52.2 million, with $8.8 million due in the remainder of 2025[194] Operational Footprint - The company had 17 dealerships across various states as of March 31, 2025, maintaining its operational footprint[19] - The company operates 17 dealerships across 11 states, with the largest RV dealership in the world located on approximately 126 acres outside Tampa, Florida[116] - The company employs approximately 920 people across its dealership locations, providing extensive RV expertise to customers[117] Strategic Initiatives - The company aims to expand its pre-owned vehicle operations to increase sales and inventory through trade-ins and direct purchases from consumers[122] - The company has strong strategic alliances with leading RV manufacturers, with 97.0% of new vehicles sold in the quarter being from Thor Industries, Winnebago Industries, and Forest River[121] - The company achieved a pre-owned to new vehicle sales ratio of 70.4% for the quarter ended March 31, 2025, with a goal to reach a 1:1 ratio[122] Concerns and Challenges - The company has substantial doubt about its ability to continue as a going concern due to negative financial conditions and reliance on generating positive cash inflows[24] - The company experienced inflationary pressures, particularly in the cost of new vehicles, which could adversely affect operating results if selling prices do not increase proportionately[197][198] - The company concluded that its disclosure controls and procedures were not effective due to previously identified material weaknesses in internal control over financial reporting[206] - A material weakness was identified related to ineffective design and implementation of Information Technology General Controls (ITGC) affecting user access, program change management, and security administration[207] - Insufficient resources due to turnover resulted in inadequate financial reviews, causing a restatement of consolidated financial statements for the year ended December 31, 2024[207] Sales and Revenue Breakdown - Revenue from Florida accounted for 48% of total revenue for the three months ended March 31, 2025, up from 44% in the same period of 2024[71] - New vehicle revenue decreased by $55.2 million, or 36.1%, primarily due to a 44.4% decrease in new vehicle retail units sold, offset by a 14.9% increase in average selling price per retail unit[151] - New vehicle gross profit increased by $5.2 million, or 92.5%, with a gross margin increase of 740 basis points, attributed to the higher average selling price of new vehicles[152] - Pre-owned vehicle retail revenue decreased by $38.0 million, or 48.3%, due to a 44.9% decrease in pre-owned retail units sold and a 6.2% decrease in average selling price per retail unit[153] - Vehicle wholesale revenue decreased by $4.2 million, or 67.1%, related to a strategic decision to right size RV inventory[155] - Consignment vehicle revenue increased by $1.0 million, or 219.5%, due to the consignment vehicle program starting in the prior year[156] - Finance and insurance revenue decreased by $6.8 million, or 37.2%, primarily due to a 39.0% decrease in total retail units sold[157] Expenses and Cost Management - SG&A expenses decreased by $10.3 million, or 21.0%, with SG&A as a percentage of revenue increasing by 520 basis points to 23.3%[161] - Floor plan interest expense decreased by $3.1 million, or 40.2%, due to a decrease in floor plan notes payable[163] - Capital expenditures decreased by $8.8 million during the three months ended March 31, 2025, compared to the same period in 2024, with forecasted capital expenditures for fiscal year 2025 expected to be less than $2.0 million[181]