Lazydays Holdings(US:GORV)2021-03-18 18:37Financial Data and Key Metrics Changes - Revenues for Q4 2020 were $196.6 million, an increase of $51.7 million or 35.7% from Q4 2019 [6] - Net income for Q4 2020 was $6.5 million compared to a net loss of $0.5 million in Q4 2019, representing a $7 million improvement [11] - Adjusted EBITDA for Q4 2020 was $15.5 million, up $12.2 million or 317% from the previous year [11] Business Line Data and Key Metrics Changes - Revenue from the sale of recreational vehicles (RVs) was $176.6 million for Q4 2020, up $50.1 million or 39.6% [6] - Q4 revenue from new RVs was $117.4 million, an increase of $43.1 million or 57.9% [7] - Revenue from pre-owned RVs was $59.2 million, up $7.1 million or 13.5% [7] - Revenue from other channels, including parts and service, was $19.9 million, an increase of $1.5 million or 8.4% [8] Market Data and Key Metrics Changes - Total RV unit sales excluding wholesale units were 2,129 for Q4 2020, up 544 units or 34.3% [6] - The average selling price of new RVs increased by $2,500 or 3% to $87,000 [7] - The average selling price of pre-owned RVs increased by 4% to $71,000 [7] Company Strategy and Development Direction - The company is experiencing strong demand for RVs, with inventory levels remaining tight, which positively impacts margins [18] - The company plans to continue expanding its dealership network and has made several acquisitions in 2020, with more expected in 2021 and 2022 [20][22] - The company is focusing on improving customer experience and service excellence through investments in people, processes, and technology [24] Management's Comments on Operating Environment and Future Outlook - Management expects OEM production levels to recover throughout 2021, with a significant supply-demand imbalance likely to persist [19] - The company has a historical high in pending sales, indicating strong future unit sales and revenue potential [20] - Management is optimistic about the performance of new dealerships, particularly the Nashville location, which was profitable shortly after opening [21] Other Important Information - Cash on hand at the end of 2020 was $63.5 million, with net working capital of $29.7 million [15] - The company had $116.3 million in inventory at year-end, with a significant portion in new vehicles [16] Q&A Session Summary Question: Are there regional differences in demand? - Management noted that demand has been strong across all regions, with some northern dealerships experiencing stronger demand than usual [28] Question: What is the outlook for M&A activity in 2021? - Management anticipates a similar pace of M&A activity as in 2020, with multiples slightly higher due to improved earnings [29] Question: How is the inventory situation between new and used RVs? - Management indicated that new inventory levels are tighter than used inventory, with efforts ongoing to source more used products [49] Question: How does the company view potential changes in tax policy affecting dealer sales? - Management stated that while it is uncertain how tax policy changes might influence dealer decisions, it is not a primary factor in current negotiations [53]