Lazydays (LAZY) - 2020 Q4 - Annual Report

Brand Recognition and Market Position - Lazydays is recognized as the second most well-known RV dealership brand, with over 85% of customers believing it is a category leader in the industry[22]. - Lazydays has acquired multiple dealerships, including Korges Enterprises and Total Value Recreational Vehicles, to expand its customer base and market presence[42]. - Approximately 11 million U.S. households are estimated to own an RV, indicating a strong market for RV-related products and services[48]. Customer Experience and Community Engagement - Lazydays aims to create "Customers for Life" by providing a unique purchasing experience and a welcoming atmosphere for RV enthusiasts[24]. - The Lazydays Employee Foundation has donated over $2 million to help at-risk children since its inception, highlighting the company's commitment to community service[26]. - The Company has a segmented marketing database of over 3.9 million RV owners and prospects, with over 70% of customers agreeing that Lazydays provides a high-quality customer experience[71]. Operations and Service Capabilities - The company offers a comprehensive portfolio of over 3,000 RVs available nationwide and operates nearly 500 service bays staffed by certified technicians[23]. - Lazydays believes its service and repair capabilities represent a significant opportunity for incremental revenue growth as it expands geographically[44]. - The Company operates eleven Lazydays dealership and service locations across seven states, strategically located in key RV markets that account for a significant portion of new RV units sold annually in the U.S.[53]. Financial and Inventory Management - Lazydays finances the purchase of substantially all new RV inventory from OEMs through a floor plan facility, with pre-owned vehicles also financed from time to time[68]. - The Company maintains central purchasing functions to manage inventory and product planning, leveraging scale to reduce costs through long-standing vendor relationships[69]. - The Company has elected scaled disclosure requirements available to smaller reporting companies regarding market risk[295]. Employee and Training Initiatives - The Company employs approximately 30 to 100 full-time equivalent employees at each dealership location, overseen by a General Manager responsible for daily operations[59]. - The Company has made significant investments in developing comprehensive Tech and Sales training programs to enhance employee skills and customer service[63]. - As of December 31, 2020, Lazydays had approximately 1,000 employees, almost all of which are full-time employees[92]. Market Trends and Sales Performance - The RV industry saw total wholesale shipments of 430,412 units in 2020, a 6% increase from 2019, with towable RVs up 8.4%[50]. - The Company's operations generally experience higher vehicle sales in the first half of each year due to consumer buying trends and favorable weather conditions[93]. - Total website traffic for the year ended December 31, 2020, was approximately 7.8 million visits, with around 7.6 million unique visitors[72]. Risk Management and Compliance - The Company has become self-insured for employee health-care benefits since 2020, which may affect results if future claims differ from historical trends[91]. - The Company does not anticipate that compliance costs with environmental, health, and safety laws will have a material adverse effect on its business[90]. - The Company has adequate insurance coverage but may face challenges in obtaining similar coverage after a catastrophic loss[95]. Infrastructure and Efficiency - Lazydays leverages its scale to improve operating efficiency and reduce costs related to purchasing equipment and supplies[47]. - Dealership locations range in size from approximately 14,000 to 384,000 square feet, situated on 11 to 126 acres, featuring service centers staffed with expert product specialists[55]. - The Company utilizes multiple computer systems, including a dealer management system and CRM, to support operations and provide analytical views of its data[76].