Lazydays (US:LAZY)2024-05-15 21:29Financial Performance - Total revenues for Q1 2024 were $270.586 million, a decrease of 8.4% compared to $295.656 million in Q1 2023[13] - Net loss for Q1 2024 was $21.980 million, compared to a net loss of $276 thousand in Q1 2023[13] - Gross profit for Q1 2024 was $37.766 million, down from $63.891 million in Q1 2023, reflecting a gross margin decline[13] - The company’s basic loss per share for Q1 2024 was $(1.67), compared to $(0.12) in Q1 2023[13] - Total revenue for the three months ended March 31, 2024, was $270.586 million, a decrease of 8.5% compared to $295.656 million in the same period of 2023[91] - New vehicle retail revenue decreased by 13.6% to $152.691 million from $176.747 million year-over-year[91] - Gross profit for the three months ended March 31, 2024, was $37.766 million, down 40.9% from $63.891 million in the prior year[91] - The total gross profit margin decreased to 14.0% from 21.6% year-over-year, reflecting a decline of 760 basis points[91] - New vehicle gross profit decreased by $17.8 million, or 75.9%, with gross margin dropping by 950 basis points to 3.7%[99] - Pre-owned vehicle retail revenue decreased by $5.2 million, or 6.1%, due to a 12.4% decrease in retail units sold and a 16.5% decrease in average selling price per retail unit[103] Cash Flow and Liquidity - Cash and cash equivalents decreased to $39.350 million as of March 31, 2024, from $58.085 million at the end of 2023[12] - Operating cash flows for Q1 2024 provided $80.240 million, a substantial improvement compared to a cash outflow of $28.832 million in Q1 2023[16] - The net cash provided by operating activities was $80,240 thousand for the three months ended March 31, 2024, a variance of $109,072 thousand compared to a net cash used of $28,832 thousand in 2023[124] - As of March 31, 2024, the company had cash of $39.4 million and a fully drawn revolver, with an estimated additional liquidity of approximately $45 million from refinancing real estate valued at $126.5 million[123] Assets and Liabilities - Total assets decreased to $821.747 million as of March 31, 2024, from $937.739 million at the end of 2023[12] - Total liabilities decreased to $630.028 million as of March 31, 2024, from $724.549 million at the end of 2023[12] - Long-term debt as of March 31, 2024, totaled $64.273 million, with a net amount of $61.978 million after debt discount[49] - Future maturities of long-term debt include $35.826 million due in 2026, with total long-term debt scheduled to be $64.273 million[55] Inventory and Sales - The company reported a significant increase in inventories, which rose to $346.645 million from $456.087 million[12] - The total inventory value as of March 31, 2024, was $346.645 million, down from $456.087 million as of December 31, 2023, representing a decrease of approximately 24%[31] - Approximately 79% of the inventory as of March 31, 2024, consisted of 2024 model year units, with efforts to discount older inventory for the summer selling season[101] - Retail units sold increased by 7.2% to 3,521 units, compared to 3,284 units in the same period last year[91] Financing and Debt - The Senior Secured Credit Facility with M&T Bank includes a $525 million Floor Plan Line of Credit and a $50 million Revolving Credit Facility, both expiring on February 21, 2027[40] - As of March 31, 2024, there was $357.8 million outstanding on the Floor Plan Line of Credit at an interest rate of 7.9%[44] - The company entered into a $35 million term loan with Coliseum Holdings I, LLC, bearing interest at 12% per annum, with a maturity date of December 29, 2026[147] - The company entered into two mortgages in July 2023 for total proceeds of $29.3 million, with interest rates between 6.85% and 7.10% per annum, maturing in July 2033[50] Operational Highlights - As of March 31, 2024, Lazydays Holdings, Inc. operated 25 dealerships across various states, including 4 in Arizona and 3 each in Florida and Tennessee[20] - The company operates 25 dealerships across 15 states, with a strategic focus on expansion through acquisitions and new store openings[86] - A complete rebranding effort was launched in January 2024, including new websites and a new stock symbol ("GORV") to enhance the digital retail experience[89] Market and Economic Conditions - Inflation has impacted operations, particularly with increased costs of new vehicles due to high demand and supply chain disruptions[157] - The Company anticipates that future retail demand will exceed pre-pandemic levels as consumers value the RV lifestyle[156] - RVIA projects total wholesale unit shipments for 2024 to be approximately 350,100 units, up 11.8% from 2023[154] Compliance and Governance - The company was not in compliance with all covenants of the M&T Bank financing agreement as of March 31, 2024, specifically failing to meet the minimum trailing twelve-month EBITDA requirement[42] - Management identified material weaknesses in internal controls over financial reporting, which are being remediated[168] - The Company believes its financial statements fairly present its financial position in conformity with U.S. GAAP despite identified weaknesses[169]