Lazydays Holdings(US:GORV)2022-05-05 17:35Financial Data and Key Metrics Changes - Revenue for Q1 2022 was $376.2 million, an increase of $105.2 million or 38.8% from Q1 2021 [20] - Adjusted EBITDA for the quarter was $44.8 million, up $16.9 million or 60.9%, marking a record quarterly performance [26] - Net income for Q1 2022 was $28.3 million, compared to $8.8 million in Q1 2021 [25] Business Line Data and Key Metrics Changes - Revenue from the sale of recreational vehicles (RVs) was $340.5 million, up $95.6 million or 39% [20] - Revenue from new RV sales was $217.4 million, an increase of $50 million or 29.9%, with new RV unit sales at 2,270, up 145 units or 6.8% [21] - Revenue from pre-owned RV sales was $123 million, up $45.5 million or 58.8%, with pre-owned unit sales at 1,478, up 406 units or 37.9% [21] - Revenue from other channels, including parts and service, was $35.7 million, up $9.6 million or 36.7% [22] Market Data and Key Metrics Changes - Average selling price (ASP) of new RVs was approximately $95,600, up $17,200 or 21.9% [21] - ASP of pre-owned RVs was $78,800, up $11,000 or 16.2% [21] - Gross profit margin excluding LIFO adjustments increased to 27% from 24.4% in 2021 [23] Company Strategy and Development Direction - The company announced plans to acquire Dave's Claremore RV, expanding its dealership footprint to 18 locations [6][7] - The company is focused on both organic growth through Greenfield developments and acquisitions, with ongoing evaluations of new opportunities [15][36] - The company repurchased $19.2 million of common stock as part of its share repurchase program [14] Management Comments on Operating Environment and Future Outlook - Management noted strong demand for RVs, with inventory levels improving as the industry normalizes [12][31] - The company is well-positioned to address external challenges, leveraging strong brand identity and relationships with OEMs [31] - Management expressed confidence in maintaining margins despite rising interest rates and inflation, as consumer behavior remains stable [51] Other Important Information - The company had cash on hand of $89.6 million and net working capital of $112.4 million as of March 31, 2022 [27] - The company received a non-binding proposal from B. Riley to acquire the company for $25 per share, which was ultimately rejected [16] Q&A Session Summary Question: Future same-store sales and acquisition pace - Management indicated strong inbound interest in RVs, with inventory levels normalizing, but could not provide specific guidance on acquisition pacing [34][36] Question: Inventory levels and management - Management clarified that they target inventory turns rather than absolute levels, with a preference for more motorized inventory [38] Question: Vehicle margins and exit rates - Margins were consistent throughout the quarter, with no significant fluctuations noted [43][44] Question: Consumer behavior in a rising rate environment - Management reported no significant impact on demand from rising interest rates or gas prices thus far [51] Question: Monthly payment absorption by consumers - Management noted that consumers are more focused on monthly payments rather than sticker prices, indicating a potential for continued demand despite higher ASPs [53]