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Lazydays Holdings(GORV) - 2025 Q1 - Earnings Call Transcript
2025-05-15 13:32
Financial Data and Key Metrics Changes - The company reported net sales of $166 million for the quarter, a decrease of $104 million or 39% compared to the prior year period, attributed to a deliberate reduction of inventory and lower store count [18][19] - Gross profit for the quarter was $44 million, an increase of $6 million compared to the prior year period, with a gross margin of 24%, representing a 10% increase compared to the prior year [19][20] - SG&A expenses improved to $39 million for the quarter compared to $49 million in the prior year period, primarily driven by reduced overhead personnel and marketing expenses [19][20] Business Line Data and Key Metrics Changes - New unit sales were down 36% or 912 units in the quarter, while average selling price for new units was 15% better for the quarter [17] - Pre-owned retail unit sales were down 48% or 655 units during the quarter, also reflective of divestitures [17] - Gross margins for new vehicles were 11% for the quarter, a 7% increase compared to the prior year period, while used vehicle gross margins were 21%, a 10% increase compared to the prior year period [18] Market Data and Key Metrics Changes - The company noted a healthier inventory mix and seasonal favorability contributed to an 18% increase in new unit sales and a 19% increase in used unit sales compared to the fourth quarter of 2024 [11] - The company observed a shift towards single axle towables and first-time buyers, with motorized inventory sales improving 11% in the first quarter versus the fourth quarter [14] Company Strategy and Development Direction - The company is focused on optimizing its dealership footprint and maximizing operational performance, having completed the sale of five dealerships to Camping World, which allowed for significant debt repayment [5][6] - A letter of intent was signed to divest three additional stores, reinforcing the strategy of refining the dealership footprint [7] - The company aims to strengthen its balance sheet to support long-term growth and stability while continuing to improve operational performance [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the RV lifestyle's affordability and consumer attraction despite potential impacts from tariffs [10] - The company is closely monitoring customer demand and macroeconomic trends, including tariffs and supply chain shortages [14] - Management highlighted the importance of maintaining a healthy inventory position and refining the consignment inventory program [13] Other Important Information - The company achieved a loss from operations of $2.3 million for the quarter, which included non-cash impairment charges of $2.9 million [20] - An adjusted EBITDA loss of $4 million was reported, an improvement compared to the loss of $18 million in the prior year period [20] Summary of Q&A Session - No questions were fielded following the conclusion of prepared remarks, as indicated by the operator [4]
Lazydays Holdings(GORV) - 2025 Q1 - Earnings Call Transcript
2025-05-15 13:30
Financial Data and Key Metrics Changes - Net sales for the quarter were $166 million, a decrease of $104 million or 39% compared to the prior year period, driven by a deliberate reduction of inventory and lower store count [17][18] - Gross profit for the quarter was $44 million, an increase of $6 million compared to the prior year period [18] - SG&A expenses improved to $39 million for the quarter compared to $49 million in the prior year period, primarily due to reduced overhead personnel and marketing expenses [18][19] - The company achieved a gross margin of 24% excluding LIFO adjustments, representing a 10% increase compared to the prior year [18] - Adjusted EBITDA loss was $4 million, an improvement compared to the loss of $18 million in the prior year period [19] Business Line Data and Key Metrics Changes - New unit sales were down 36% or 912 units in the quarter, while average selling price for new units was 15% better for the quarter [16] - Pre-owned retail unit sales were down 48% or 655 units during the quarter, reflective of divestitures [16] - Gross margins for new vehicles were 11% for the quarter, a 7% increase compared to the prior year period, while used vehicle gross margins were 21%, a 10% increase [17] Market Data and Key Metrics Changes - New inventory comprised of 82% model year 2025 and 2026 units, up significantly from last quarter [13] - The company noted a shift towards single axle towables and first-time buyers, with motorized inventory sales improving 11% in the first quarter versus the fourth quarter [13] Company Strategy and Development Direction - The company outlined a two-part strategy focused on optimizing dealership footprint and maximizing operational performance [5] - The sale of five dealerships to Camping World allowed the company to significantly deleverage its balance sheet by repaying approximately $145 million in debt [6] - The company entered into a letter of intent to divest three additional stores, aiming to refine its footprint and reinforce its financial position [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the RV lifestyle's affordability and consumer attraction despite potential tariff impacts [9] - The company is closely monitoring customer demand and macroeconomic trends, including tariffs and supply chain shortages [13] - Management remains committed to strengthening the balance sheet to support long-term growth and stability [20] Other Important Information - The company reported a loss from operations of $2.3 million for the quarter, which included non-cash impairment charges of $2.9 million [19] - The company reduced debt by $145 million during the quarter, contributing to meaningful deleveraging [19] Q&A Session Summary - No questions were fielded following the conclusion of prepared remarks, and the call concluded without a Q&A session [4]