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 increased to $43.8 million, up 16.4% from $37.8 million in the same period last year[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, 2024, were revised to $270.1 million after an adjustment of $(466) thousand[27] - The net loss attributable to common stockholders for Q1 2025 was $9.533 million, compared to a net loss of $23.964 million in Q1 2024[77] - Basic loss per share for Q1 2025 was $(0.09), significantly improved from $(1.67) in Q1 2024[77] - Adjusted EBITDA for the quarter ended March 31, 2025, was $(4.0) million, compared to $(18.2) million for the same period in 2024[170] Cash and Liquidity - Cash and cash equivalents decreased to $19.7 million from $24.7 million at the end of Q4 2024, a decline of 20.1%[10] - As of March 31, 2025, the company had cash and cash equivalents of $20 million, debt obligations of $47.7 million, and floor plan notes payable of $210.9 million[24] - The company’s liquidity needs are primarily satisfied through cash flows from operations, borrowings under credit facilities, and potential financing options[175] - For the three months ended March 31, 2025, the company reported a net cash provided by operating activities of $26,032,000, a decrease of 67.5% compared to $80,240,000 in the same period of 2024[180] - The company experienced a net cash inflow of $113,932,000 from investing activities, primarily from the sale of five dealerships, which was used to repay $61.2 million of floor plan notes payable and $46.1 million of term loan and mortgage debt[181] Inventory and Assets - The company reported a significant increase in inventories, which rose to $182.6 million from $211.9 million, a decrease of 13.8%[10] - Inventories, net, decreased from $211.9 million as of December 31, 2024, to $182.6 million as of March 31, 2025[35] - The current replacement costs of LIFO inventories exceeded their recorded values by $22.4 million as of March 31, 2025[34] - As of March 31, 2025, current assets held for sale totaled $16,049,000, a decrease from $86,869,000 as of December 31, 2024, while long-term assets held for sale decreased to $18,563,000 from $75,747,000[45] Debt and Financing - The outstanding principal balance of the Revolving Credit Facility was $27,800,000 as of March 31, 2025, with an interest rate of 7.83%[56] - The Floor Plan Credit Facility had an outstanding balance of $210,900,000 at an interest rate of 6.93% as of March 31, 2025[59] - Future contractual maturities of total debt are projected to be $52,228,000, with $8,846,000 due in the remainder of 2025[67] - The company entered into a term loan agreement with Coliseum Holdings I, LLC for an initial principal amount of $35,000,000, maturing December 29, 2026[62] - As of March 31, 2025, the outstanding principal balance of a term loan with Coliseum Holdings I, LLC was $18.4 million[92] Operational Efficiency - The company plans to continue focusing on operational efficiency and cost management to improve profitability in the upcoming quarters[12] - SG&A expenses decreased by $10.3 million, or 21.0%, primarily due to a reduction in employee-related costs and marketing expenses[161] - Floor plan interest expense decreased by $3.1 million, or 40.2%, due to a reduction in floor plan notes payable[163] - The company is focused on managing inventory levels to reflect consumer demand and has strategies in place for customer retention and growth[118] Market Presence and Sales - The company had 17 dealerships across various states as of March 31, 2025, maintaining its market presence[19] - Revenue from Florida accounted for 48% of total revenue for the three months ended March 31, 2025, compared to 44% in the same period of 2024[71] - 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] - The company offers a comprehensive selection of over 3,400 new and pre-owned RVs, aiming to provide a full spectrum of products and services for RV owners[117] Internal Controls and Compliance - The company identified material weaknesses in its internal control over financial reporting, particularly in Information Technology General Controls (ITGC) related to user access and program change management[207] - As of March 31, 2025, the company's disclosure controls and procedures were deemed ineffective due to previously identified material weaknesses[206] - Management concluded that the inherent limitations of control systems may lead to undetected misstatements due to error or fraud[205] - The company is currently in the process of remediating the identified material weaknesses[206]
Lazydays Holdings(GORV) - 2025 Q1 - Quarterly Report