Lazydays RV Reports Third-Quarter Financials

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November 8, 2018 by   Leave a Comment

Lazydays Holdings Inc. reported a drop net income for its third quarter, ended Sept. 30.

The company said sales were $142.4 million;,down $1.2 million, or 0.8%, versus 2017. Revenue from sales of recreational vehicles was $125.3 million for the quarter, down $1.5 million, or 1.1%. RV unit sales excluding wholesale units, were 1,801, down 18 units, or 1.0%.

Other highlights include:

  • Gross profit, excluding last-in first-out (“LIFO”) adjustments, was $31.2 million, down $0.7 million versus 2017. Gross margin excluding LIFO adjustments was down slightly between the two periods, from 22.2% to 21.9%, primarily driven by a decrease in pre-owned motorized vehicle sales. Gross profit for the quarter including LIFO adjustments was $30.3 million; down $4.4 million, or 12.8%. This gross profit decline was due to a $3.7 million net change related to LIFO adjustments in the two periods.
  • Excluding transaction costs, stock-based compensation, and depreciation and amortization, SG&A for the quarter was $23.8 million, up $0.4 million compared to the prior year attributable to the acquired Minnesota location. Stock-based compensation and depreciation and amortization increased $2.7 million and $1 million, respectively, compared to the prior year. These non-cash expense increases stemmed from the March 2018 merger between Andina Acquisition Corp. II and Lazy Days’ R.V. Center Inc., which included options issued to management and increases in tangible and intangible asset valuations.
  • On Aug. 7, Lazydays closed on the acquisition of Shorewood RV Center located in Ramsey, Minnesota. The company had announced on May 21 that it had entered into an agreement to acquire Shorewood RV Center. The dealership is now known as Lazydays RV of Minneapolis.
  • On Oct. 23, Lazydays announced entering into an agreement to acquire Tennessee RV Supercenter located just outside Knoxville, Tennessee.
  • Adjusted EBITDA, a non-GAAP financial measure, was $6.3 million for the quarter, compared to $7.6 million in 2017. This was primarily driven by the decrease in revenue and associated gross profit described above.
  • As of Sept. 30, cash was $37.4 million, up $1.8 million from June 30, 2018. The increase in cash was primarily driven by cash flows from operations of $4.5 million.

“The third quarter highlighted the benefits of successfully executing our geographic expansion strategy and diversifying our revenue base geographically. While we were adversely impacted by market conditions in the Southeastern United States, we were able to maintain our year-to-date top line due to contributions from markets outside the Southeast,” stated William Murnane, chairman and chief executive officer of Lazydays. “We are excited to have announced our second planned acquisition this year and to continue our geographic expansion into Tennessee.  We expect to close the Tennessee acquisition before the end of the year. The opportunities for continued geographic expansion remain robust and we expect to continue our geographic expansion throughout 2019.”

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