Lazydays (US:LAZY)2025-11-14 16:55Financial Performance - Total revenue for Q3 2025 was $101.4 million, a decrease of 50.8% compared to $206.0 million in Q3 2024[11] - New vehicle retail revenue was $60.2 million, down 50.7% from $122.3 million year-over-year[11] - Net loss for Q3 2025 was $82.4 million, compared to a net loss of $17.7 million in Q3 2024, representing a 366.5% increase in losses[11] - The company reported a gross profit of $19.6 million for Q3 2025, down 56.7% from $45.3 million in Q3 2024[11] - For the nine months ended September 30, 2025, the company reported a net loss of $116.5 million, compared to a net loss of $83.9 million for the same period in 2024, representing a 39% increase in losses year-over-year[17] - Total revenue for the nine months ended September 30, 2025, was $398.5 million, a decrease of $313.1 million or 44.0% compared to the same period in 2024[197] - Total gross profit for the nine months ended September 30, 2025, was $97.6 million, down $32.9 million or 25.2% from the same period in 2024[197] Assets and Liabilities - Total current assets decreased to $203.1 million from $353.8 million as of December 31, 2024, a decline of 42.4%[10] - Total assets decreased to $333.2 million from $675.8 million as of December 31, 2024, a decline of 50.7%[10] - Total liabilities decreased to $359.5 million from $586.2 million as of December 31, 2024, a decline of 38.7%[10] - The company had cash and cash equivalents of $9.5 million as of September 30, 2025, down from $24.7 million at the end of 2024[10] - The company’s retained deficit increased to $231.3 million as of September 30, 2025, compared to $114.7 million at the end of 2024[10] - The company had total debt obligations of $40.2 million related to mortgages, term loans, and a revolving credit facility, along with floor plan notes payable of $184.0 million[25] Impairment and Charges - The company incurred impairment charges of $74.5 million during the nine months ended September 30, 2025[17] - The company recorded a non-cash impairment charge of $22.9 million on indefinite-lived intangible assets in Q3 2025 due to asset sales[188] - The company recorded an impairment loss of $11.9 million on assets held for sale during Q3 2025, contributing to a total of $15.3 million for the nine months ended September 30, 2025[69] Asset Sales and Dissolution - The company entered into an Asset Purchase Agreement on October 6, 2025, to sell substantially all of its assets, with proceeds expected to repay outstanding obligations under the Credit Agreement[27] - The company’s Board of Directors approved a plan of dissolution on October 14, 2025, subject to stockholder approval, following the Asset Sales[28] - The company expects no assets will remain for distribution to stockholders after paying outstanding liabilities to creditors under the Plan of Dissolution[140] - The company completed asset sales resulting in 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[57] Revenue Breakdown - New vehicle retail revenue decreased by $62.1 million, or 50.8%, primarily due to a 52.1% decrease in new vehicle retail units sold[177] - Pre-owned vehicle retail revenue decreased by $28.2 million, or 55.0%, driven by a 55.4% decrease in pre-owned retail units sold[179] - Vehicle wholesale revenue decreased by $1.3 million, or 73.5%, due to a strategic decision to right-size RV inventory[181] - Finance and insurance revenue fell by $8.0 million, or 48.7%, in Q3 2025, driven by a 50.6% decrease in total retail units sold[183] - Service, body, and parts revenue decreased by 34.2%, with gross profit down 38.3% in Q3 2025, largely due to divestitures resulting in a $5.3 million revenue drop[184] Stock and Employment - The company executed a 1-for-30 reverse stock split effective July 11, 2025, to meet the $1.00 per share minimum bid price for continued listing on Nasdaq[34] - The company anticipates that its common stock will be delisted from Nasdaq on or about November 28, 2025, following the filing of Form 25[143] - The company has notified employees of expected terminations effective November 16, 2025, in connection with the closing of the Asset Sales[146] - As of September 30, 2025, the company employs approximately 800 people and offers over 2,800 new and pre-owned RVs[152] Future Projections and Compliance - The company has raised substantial doubt about its ability to continue as a going concern due to uncertainty regarding its financial condition and liquidity needs[31] - The Company is required to comply with certain financial covenants, including maintaining liquidity above $5.0 million during the waiver period[84] - The Company must complete asset sales and repay outstanding obligations under the Credit Agreement by the end of the September 2025 Waiver Period[86]