Lazydays (LAZY) - 2021 Q3 - Quarterly Report

Financial Performance - Total revenues for the three months ended September 30, 2021, were $318.7 million, a 47.7% increase from $215.7 million in the same period of 2020[14] - Net income for the three months ended September 30, 2021, was $30.97 million, compared to $3.7 million for the same period in 2020, representing an increase of 733.8%[14] - Net income for the nine months ended September 30, 2021, was $65.1 million, compared to $12.4 million for the same period in 2020, representing a significant increase of 424%[20] - Total revenue for the nine months ended September 30, 2021, reached $912,512 million, up from $620,538 million in 2020[35] - Gross profit increased by approximately $105.8 million, or 78.5%, to $240.6 million, attributed to growth in RV sales and associated products and services[206] Assets and Liabilities - The company reported total assets of $562.3 million as of September 30, 2021, up from $444.0 million as of December 31, 2020, reflecting a growth of 26.6%[10] - Total liabilities increased to $327.65 million as of September 30, 2021, from $303.50 million as of December 31, 2020, an increase of 7.9%[12] - The total stockholders' equity increased to $179.69 million as of September 30, 2021, from $85.52 million as of December 31, 2020, representing an increase of 109.8%[12] Cash Flow and Investments - Total cash provided by operating activities for the nine months ended September 30, 2021, was $86.2 million, compared to $141.9 million in 2020, indicating a decrease of 39%[20] - Cash paid for acquisitions during the nine months ended September 30, 2021, was $63.0 million, compared to $2.7 million in 2020, reflecting a substantial increase in investment activity[20] - The company reported a net cash increase of $3.5 million for the nine months ended September 30, 2021, compared to an increase of $50.2 million in 2020, showing a decline in cash growth[21] Revenue Breakdown - Revenue from new and pre-owned vehicle sales increased by approximately $91.2 million, or 46.9%, to $285.8 million for the three months ended September 30, 2021, compared to $194.6 million for the same period in 2020[188] - Revenue from new vehicle sales increased by approximately $188.2 million, or 52.0%, to $550.4 million, driven by an increase in units sold from 4,815 to 7,097 and an increase in average selling price from $73,400 to $77,500[202] - Revenue from pre-owned vehicle sales increased by approximately $79.4 million, or 41.5%, to $270.5 million, with units sold increasing from 3,106 to 3,917 and average revenue per unit rising from $58,000 to $65,800[203] Operational Metrics - Basic earnings per share (EPS) for the three months ended September 30, 2021, was $1.69, compared to $0.12 for the same period in 2020, an increase of 1,308.3%[14] - Gross margin for the three months ended September 30, 2021, was 28.3%, compared to 22.9% for the same period in 2020[178] - Selling, general and administrative (SG&A) expenses increased by $19.0 million, or 66.4%, to $47.6 million for the three months ended September 30, 2021, compared to $28.6 million for the same period in 2020[195] Acquisitions and Growth Strategy - The Company completed multiple acquisitions, with a total purchase price of $63,036 for Korges, Total RV, Camp-Land, Chilhowee, BYRV, and Burlington[78] - The Company recorded approximately $75,733 in revenue and $11,492 in income before income taxes for the period from July 1, 2021, to September 30, 2021, related to recent acquisitions[80] - The company plans to continue expanding its market presence and investing in new product development to drive future growth[14] Market and Competitive Landscape - The company experienced a significant adverse impact from the COVID-19 pandemic, although increased sales since then have offset initial losses[151] - The company faces risks related to competition, supply arrangements, and economic conditions that could adversely affect its financial performance[152] - The Company operates the world's largest RV dealership with on-site inventory located on 126 acres outside Tampa, Florida[160] Employee and Compensation - The Company reduced its workforce by 25% in response to the COVID-19 pandemic[62] - The CEO is entitled to severance equal to two times the base salary and the average annual bonus if terminated without cause prior to January 1, 2022[110] - The CFO has an initial base salary of $325,000 per year with a target bonus of 75% of the base salary, potentially reaching up to 150%[112]