Lazydays Holdings(GORV) - 2024 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $213.5 million, a decrease of 23.9% compared to the same period in 2023, with a nine-month period decline of 18.3% [16] - Total gross profit for the quarter was$ 45.3 million, a decrease of $9.1 million or 16.8% year-over-year, with a gross profit margin of 21.2%, an increase of 180 basis points from last year [23] - The company ended the quarter with$ 13.5 million in cash, but expects to have approximately $35 million available after the recapitalization and asset sale transactions [24] Business Line Data and Key Metrics Changes - New unit sales declined by 18.6% in the quarter, with gross profit per unit (excluding LIFO) down by 26.1% [19] - Average selling price (ASP) for new units decreased by 13.1%, reflecting a shift towards towable units rather than motorized units [19] - Pre-owned retail unit sales were down 6.7%, with gross profit per unit decreasing by 23.6%, indicating a supply issue rather than a demand headwind [20][21] - Finance and insurance (F&I) revenue slightly decreased by 0.8%, but average gross profit per unit increased by 15.9% [22] Market Data and Key Metrics Changes - The third quarter was negatively impacted by Hurricane Helene and Hurricane Milton, resulting in an estimated loss of 10 sales days [17][18] - The company noted that the demand for pre-owned units is expected to improve as supply conditions change [21] Company Strategy and Development Direction - The company is undergoing a significant transformation, including the sale of seven dealerships for$ 65.6 million and a planned rights offering of $25 million [8][10] - A recapitalization plan was executed to strengthen the financial foundation and streamline the dealership portfolio, which includes eliminating preferred stock liquidation preferences and annual dividend requirements [11][12] - The company aims to return to profitability with a focus on operational performance and a simplified balance sheet [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, emphasizing the importance of the recent recapitalization and asset sales in positioning the company for long-term growth [13][26] - The management acknowledged the challenges posed by recent hurricanes but highlighted the resilience of the team and the support from lenders and investors [26] Other Important Information - The company will not hold a Q&A session during this call, with plans to resume Q&A in the next investor call after year-end earnings in March 2025 [6] Summary of Q&A Session - There were no questions or answers during this call as the Q&A session was omitted [29]