Lazydays (US:LAZY)2024-11-18 21:48Financial Performance - Total revenues for the three months ended September 30, 2024, were $213.465 million, a decrease of 24% compared to $280.682 million in the same period of 2023[16] - Gross profit for the three months ended September 30, 2024, was $45.313 million, down from $54.441 million in the same period of 2023, representing a decline of 17%[16] - Net loss for the three months ended September 30, 2024, was $17.665 million, compared to a net loss of $5.586 million in the same period of 2023, indicating a significant increase in losses[16] - Total revenues for the nine months ended September 30, 2024, were $722,745,000, a decrease of 18.3% from $884,718,000 in 2023[153] - Net loss for the nine months ended September 30, 2024, was $83,866, compared to a net loss of $2,301 for the same period in 2023[26] - Total gross profit for the three months was $45,313,000, down 16.8% from $54,441,000 in the same period last year[150] - Total gross profit for Q3 2024 was $108.5 million, down $64.3 million, or 37.2%, from $172.7 million in Q3 2023[161] Assets and Liabilities - Total assets decreased to $735.946 million as of September 30, 2024, down from $937.739 million as of December 31, 2023, reflecting a reduction of approximately 21%[10] - Total liabilities decreased to $605.018 million as of September 30, 2024, down from $724.549 million as of December 31, 2023, representing a decline of about 16%[10] - Current liabilities totaled $392.018 million as of September 30, 2024, a decrease from $499.977 million as of December 31, 2023, indicating a reduction of approximately 22%[10] - The company’s cash position decreased to $13.536 million as of September 30, 2024, down from $58.085 million as of December 31, 2023[10] - The company’s retained earnings showed a deficit of $37.713 million as of September 30, 2024, compared to retained earnings of $48.137 million as of December 31, 2023[10] - As of September 30, 2024, total stockholders' equity was $68,565, a decrease from $87,998 as of June 30, 2024[18] Revenue Breakdown - New vehicle retail revenue decreased by 29.3% to $122,291,000 from $172,898,000 year-over-year[150] - Pre-owned vehicle retail revenue declined by 19.8% to $60,177,000 compared to $75,059,000 in the previous year[150] - Florida generated 29% of total revenues for the three months ended September 30, 2024, down from 33% in the same period of 2023[84] - Thor Industries, Inc. accounted for 50% of total RV and replacement parts purchases for the nine months ended September 30, 2024, up from 38% in 2023[87] Expenses and Costs - Cash paid for interest during the nine months ended September 30, 2024, was $24,783, significantly higher than $7,402 in 2023[28] - Floor plan interest expense increased to $6.361 million in Q3 2024 from $6.258 million in Q3 2023, reflecting higher average borrowing rates[204] - Other interest expense for the three months ended September 30, 2024, was $5,564,000, an increase of 106.0% from $2,701,000 in 2023[205] - For the nine months ended September 30, 2024, other interest expense totaled $15,924,000, up 145.6% from $6,484,000 in 2023[205] Stock and Equity - The company had 2,421,841 common stock equivalent shares excluded from the calculation of diluted loss per share due to their anti-dilutive effect for the three months ended September 30, 2024[93] - The company granted a performance-based stock option for 1,500,000 shares with a strike price of $2.00 per share in September 2024[110] - The Company raised gross proceeds of $30 million from the sale of PIPE Shares at a price of $1.03 per share[125] - The Company agreed to exchange 600,000 shares of Preferred Stock for 66,488,948 shares of Common Stock, resulting in a loss of liquidation preference of approximately $68.5 million[127] Operational Highlights - As of September 30, 2024, Lazydays Holdings, Inc. operated 23 RV dealerships across various states, including Arizona, Colorado, and Florida[31][32] - The Company operates 23 dealerships in 14 states, with a significant portion of new RV units sold annually in the U.S.[144] - The Company employs approximately 1,300 people across its dealership locations, providing extensive RV expertise to customers[145] Future Outlook and Agreements - The Company expects the Asset Purchase Agreement and Real Estate Purchase Agreement to likely result in a net loss after taxes, but cannot estimate the range of loss at this time[120] - The company is currently evaluating the effects of new accounting standards on its disclosures, including ASU 2023-07 related to reportable segment disclosures[39] - The Company will eliminate testing of certain financial covenants until March 31, 2026, and change performance targets for compliance with financial covenants[133] Tax Information - Income tax benefit for the three months ended September 30, 2024, was $381,000, a decrease of $1,424,000 from $1,805,000 in 2023[206] - The effective tax rate for the three months ended September 30, 2024, was (2.1)%, compared to (24.4)% in 2023[206] - For the nine months ended September 30, 2024, the income tax expense was $(16,640,000), a decrease of $17,282,000 from a benefit of $642,000 in 2023[206]