Lazydays Holdings, Inc. Reports Second Quarter 2022 Financial Results
August 4, 2022
TAMPA, Fla., August 4, 2022 — Lazydays Holdings, Inc. (“Lazydays” or the “Company”) (NasdaqCM: LAZY) announced financial results for the second quarter ended June 30, 2022. Net Income for the quarter was $31.8 million, up $6.5 million compared to the second quarter of 2021. Second quarter revenue was $373.6 million, up $50.8 million compared to the second quarter of 2021. Adjusted EBITDA, a non-gaap measure, of $38.4 million was down 6.8% compared to the second quarter of 2021.
- Revenues for the second quarter were $373.6 million; up $50.8 million, or 15.7%, versus the second quarter of 2021. Revenue from sales of Recreational Vehicles (“RVs”) was $337.3 million for the second quarter, up $47.1 million, or 16.2%, versus the second quarter of 2021. RV unit sales excluding wholesale units, were 4,052 for the quarter, down 156 units, or 3.7% versus the second quarter of 2021. New and preowned RV sales revenues were $219.2 million and $118.1 million for the quarter, up 8.7% and 33.1% respectively compared to the second quarter of 2021.
- Gross profit, excluding last-in-first-out (“LIFO”) adjustments, was $101.2 million, up $14.8 million, or 17.1%, versus the second quarter of 2021. Gross margin excluding LIFO adjustments increased slightly between the two periods, to 27.1% in the second quarter of 2022 from 26.8% in the second quarter of 2021. Gross margins continued to be strong versus pre-Covid norms for the Company’s new and pre-owned vehicle sales revenues, primarily driven by inventory availability as manufacturers ramped up production and continued to restock dealers to make up lost production from COVID related shutdowns and strong consumer demand. Inventories normalized for most towable products by the end of the quarter, while many motorized products remained below desired levels. Gross profit for the quarter including LIFO adjustments was $99.3 million; up $13.1 million, or 15.2%, versus the second quarter of 2021. This gross profit comparison reflects a $1.7 million net increase in LIFO adjustments between the two periods.
- Excluding transaction costs, stock-based compensation, and depreciation and amortization; Selling, General and Administrative expense (“SG&A”) for the second quarter was $61.5 million, up $16.7 million compared to the prior year. The increase was primarily related to overhead associated with the Portland, Oregon, Vancouver, Washington and Milwaukee, Wisconsin dealerships acquired in August 2021; overhead associated with the Monticello, Minnesota dealership opened in March 2022; increased marketing expense, support costs and investments in IT infrastructure and compliance.
- Depreciation and amortization increased $0.7 million, and transaction costs decreased $0.4 million compared to the prior year.
- Adjusted EBITDA, a non-GAAP financial measure, was $38.4 million for the second quarter, down $2.8 million compared to 2021. EBITDA Margin, a non-GAAP financial measure, decreased to 10.3% in the second quarter of 2022 from 12.8% in the second quarter of 2021.
- As of June 30, 2022, cash was $105.4 million, up $7.2 million from December 31, 2021. The increase includes the impact of cash used in operating activities of $31.7 million and cash paid for purchases of property and equipment and acquisitions of $12.7 million, offset by cash provided by financing activities of $51.7 million. Operating cash flow includes the negative impact of a $79.2 million increase in inventory as RV inventory continues to recover from depleted levels. The cash impact of this inventory increase is offset by an $89.5 million floorplan cash inflow reflected in cash provided by financing activities. Cash provided by financing activities also includes cash outflows of $38.2 million for the repurchase of 2,253,406 shares of common stock at an average price of approximately $16.94.
- The reported second quarter $31.8 million net income includes $9.7 million of non-cash non-operating income recognizing a change in the fair value of warrant liabilities, versus a $6.8 million expense in 2021.
A live audio webcast of the conference call will be available online at https://www.lazydays.com/investor-relations.
A telephonic replay of the conference call will be available until August 11, 2022 and may be accessed by calling 1-800-770-2030 or 1-647-362-9199 with a conference ID number of 1488544. The webcast will be archived in the Investor Relations section of the Company’s website.
ABOUT LAZYDAYS RV
As an iconic brand in the RV industry, Lazydays, The RV Authority, consistently provides the best RV sales, service, and ownership experience, which is why RVers and their families become Customers for Life. Lazydays continues to add locations at a rapid pace as it executes its geographic expansion strategy that includes both acquisitions and greenfields.
Since 1976, Lazydays RV has built a reputation for providing an outstanding customer experience with exceptional service excellence and unparalleled product expertise, along with being a preferred place to rest and recharge with other RVers. By offering the largest selection of RV brands from the nation’s leading manufacturers, state-of-the-art service facilities, and thousands of accessories and hard-to-find parts, Lazydays RV provides everything RVers need and want.
Lazydays Holdings, Inc. is a publicly listed company on the Nasdaq stock exchange under the ticker “LAZY.”
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements describe Lazydays future plans, projections, strategies and expectations, including statements regarding Lazydays’ expectations for future operating results, its expectations regarding the impact of its acquisitions of recently acquired dealerships in Maryville, Tennessee, Portland, Oregon, Vancouver, Washington, Milwaukee, Wisconsin and Tulsa, Oklahoma; its greenfield start-ups in Monticello, Minnesota, Fort Pierce, Florida, near Omaha, Nebraska, Wilmington, Ohio, Surprise, Arizona and Nashville, Tennessee; and are based on assumptions and involve a number of risks and uncertainties, many of which are beyond the control of Lazydays. Actual results could differ materially from those projected due to various factors, including an extended slowdown in the markets in which we operate, the effects of inflation; the impact of the war between Russia and Ukraine, economic conditions generally (including increases in fuel costs), conditions in the credit markets and changes in interest rates, conditions in the capital markets, the continuing impact of the coronavirus pandemic (COVID-19), other factors described from time to time in Lazydays’ public announcements and SEC reports and filings, which are available at www.sec.gov and other factors that Lazydays may not have currently identified or quantified. Forward-looking statements contained in this news release speak only as of the date of this news release, and Lazydays undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances, unless otherwise required by law.
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