TAMPA,
Fla., March 8, 2024 /PRNewswire/ -- Lazydays
(NasdaqCM: GORV) today reported financial results for the fourth
quarter ended December 31, 2023.
John North, Chief Executive
Officer, commented, "The fourth quarter of 2023 proved to be a
challenging operating environment, in particular due to industry
wide economic pressures. However, after increasing our marketing
budget and aggressively discounting 2022 and 2023 inventory our
unit volumes increased meaningfully both sequentially and
year-over-year in December, January and February. More importantly,
we have seen gross profit on vehicle sales improve from December to
February and an increasing percentage mix of current model year
units sold relative to the total, generating more gross profit
dollars. As of today, our new inventory is comprised of more than
80% current model year units, and we believe is among the
healthiest in the industry. Additionally, our adjusted cash flow
from operations is positive this quarter to date."
Commenting on 2024, John stated, "We anticipate a pre-tax loss
in the first quarter and a return to profitability thereafter.
Given the significant corporate development actions taken in 2023,
the first six months of this year will be focused on improving
volume and store performance. For the full year 2024, we anticipate
both positive net income and operational cash flow. The quality of
our locations, the partnerships we have with our OEMs and the
operational improvements we have made to our leadership team give
me confidence in our future results and we look forward to
demonstrating the earnings power of the company in the future."
Fourth quarter 2023 revenue decreased to $198.0 million from $243.5
million in the fourth quarter of 2022. As a result of the
decline in the price of our common equity in the fourth quarter of
2023, we determined a triggering event had occurred relative to the
carrying value of goodwill, and, as a result, we recorded a
non-cash goodwill impairment charge of $118.0 million in the quarter.
Fourth quarter 2023 net loss was $108.0
million compared to net loss of $1.4
million for the same period in 2022. Fourth quarter 2023
adjusted net loss, a non-GAAP measure, was $13.8 million compared to net income of
$0.9 million for the same period in
2022. Fourth quarter 2023 net loss per diluted share was
$7.59 compared to net loss per
diluted share of $0.24 for the same
period in 2022. Adjusted fourth quarter 2023 net loss per diluted
share was $1.09 compared to net loss
per diluted share of $0.02 for the
same period in 2022.
The fourth quarter 2023 adjusted results exclude a net non-core
charge of $6.50 per diluted share
related to our non-cash goodwill impairment charge, LIFO
adjustment, and acquisition expenses. The fourth quarter of 2022
adjusted results exclude a net non-core charge of $0.22 per diluted share related to the effects of
changes in fair value of warrant liabilities, our LIFO adjustment,
acquisition expenses and severance and transition costs.
Net loss for 2023 was $110.3
million compared to net income of $66.4 million for the same period in 2022.
Adjusted net loss for 2023 was $11.5
million compared to net income of $64.1 million for the same period in 2022. Net
loss per diluted share for 2023 was $8.45 compared to net income per diluted share
of $2.42 for the same period in
2022, and adjusted net loss per diluted share was $1.24 compared to adjusted net income per diluted
share of $3.05 for the same period in
2022.
The adjusted results for full year 2023 exclude a net non-core
charge of $7.21 per diluted share
related to the effects of a non-cash goodwill impairment charge,
changes in the fair value of warrant liabilities, our LIFO
adjustment, acquisition expenses, severance and transition costs
and a storm reserve. The adjusted results for the same period in
2022 exclude a net non-core charge of $0.63 per diluted share related to the effects of
changes in the fair value of warrant liabilities, our LIFO
adjustment, acquisition expenses and severance and transition
costs.
Corporate Developments
As previously announced, during
the fourth quarter we acquired Orangewood RV in Surprise, Arizona and RVzz in St. George, Utah. We also opened our Ft.
Pierce, Florida greenfield
location. We estimate these stores will add $110.0 million in annual revenues at steady
state.
Earlier this week we announced the opening of our Surprise, Arizona dealership, the fourth and
final greenfield location we began development on in 2021. This
marks our third location in the Phoenix metropolitan area is expected to
generate estimated annual revenues of $50.0
million at steady state. As of today, we operate 25
locations nationwide.
In January 2024, we launched a
comprehensive rebranding effort, including an all-new website, new
logos, fonts and colors, and changed our stock symbol to "GORV."
These actions are designed to enhance our digital retailing efforts
as well as improve our customer experience on mobile devices, which
account for over 80% of our website traffic today.
Balance Sheet Update
In the fourth quarter, we
cancelled our planned rights offering to stockholders. We
subsequently secured a $35.0 million
mortgage facility collateralized by seven of our owned locations
with a cost basis of approximately $109.9
million. The facility closed on December 29, 2023 and has a three-year term. It
is structured to allow us to obtain alternative financing on a
location-by-location basis at an increased loan-to-value advance
rate with other lending partners including regional and national
banks.
We ended the fourth quarter 2023 with cash of $58.1 million. We estimate we can generate an
additional $47.5 million in mortgage
loan proceeds as we refinance locations at a 75% loan-to-value, in
line with advance rates obtained on other mortgage financing
secured earlier in 2023. We also have other unencumbered real
estate that we estimate can generate additional liquidity of
approximately $18 million through
financing transactions.
As a result of our financial performance in the fourth quarter
of 2023 and overall market conditions, we received a waiver of our
financial covenants associated with our syndicated credit facility
for the fourth quarter of 2023 and the first two quarters of 2024,
with relaxed covenants in the third quarter and a return to our
standard covenant package as of the end of 2024.
As of March 7, 2024, we had cash
and cash equivalents of approximately $45
million. The reduction in our cash balance from year end is
primarily a function of capital expenditures associated with
corporate development efforts that are substantially complete as of
today.
Kelly Porter, Chief Financial
Officer, stated, "With cash on hand of $45
million as of today, we believe we have a strong foundation
on which to build. We have generated positive operational cash flow
for the first 70 days of 2024 while continuing to make significant
operational improvements and we expect to be operationally cash
flow positive for the remainder of the year. I'd like to thank our
syndicated lenders, lead by M&T Bank, for facilitating the
modification to our credit facility to relax our financial
covenants and provide room to navigate the current macroeconomic
environment and prepare us for a strong 2024."
Conference Call Information
We have scheduled a
conference call at 8:30 AM Eastern Time on
Friday, March 8, 2024 that will also be broadcast live
over the internet.
The conference call may be accessed by telephone at (877)
407-8029 / +1 (201) 689-8029. To listen live on our website or for
replay, visit https://www.lazydays.com/investor-relations.
About Lazydays
Lazydays has been a prominent player in
the RV industry since our inception in 1976, earning a stellar
reputation for delivering exceptional RV sales, service, and
ownership experiences. Our commitment to excellence has led to
enduring relationships with RVers and their families who rely on us
for all of their RV needs.
With a strategic approach to rapid expansion, we are growing our
network through both acquisitions and new builds. Our wide
selection of RV brands from top manufacturers, state-of-the-art
service facilities, and an extensive range of accessories and parts
ensure that Lazydays is the go-to destination for RV enthusiasts
seeking everything they need for their journeys on the road.
Whether you're a seasoned RVer or just starting your adventure, our
dedicated team is here to provide outstanding support and guidance,
making your RV lifestyle truly extraordinary.
Lazydays is a publicly listed company on the Nasdaq stock
exchange under the ticker "GORV."
Forward-Looking Statements
This press release includes
"forward-looking statements" within the meaning of the
"Safe-Harbor" provisions of the Private Securities Litigation
Reform Act of 1995. Forward looking statements include statements
regarding our goals, plans, projections and guidance regarding our
financial position, results of operations, market position, pending
and potential future acquisitions and business strategy, and often
contain words such as "project," "outlook," "expect," "anticipate,"
"intend," "plan," "believe," "estimate," "may," "seek," "would,"
"should," "likely," "goal," "strategy," "future," "maintain,"
"continue," "remain," "target" or "will" and similar references to
future periods. Examples of forward-looking statements in this
press release include, among others, statements regarding:
- Our anticipated financial condition and liquidity
- Sufficient working capital
- Full year 2024 results
- Anticipated revenues from acquired and open point stores;
and
- Anticipated availability of liquidity from our credit facility
and unfinanced operating real estate.
By their nature, forward-looking statements involve risks and
uncertainties because they relate to events that depend on
circumstances that may or may not occur in the future.
Forward-looking statements are not guarantees of future
performance, and our actual results of operations, financial
condition and liquidity and development of the industry in which we
operate may differ materially from those made in or suggested by
the forward-looking statements in this press release. The risks and
uncertainties that could cause actual results to differ materially
from estimated or projected results include, without limitation,
future economic and financial conditions (both nationally and
locally), changes in customer demand, our relationship with, and
the financial and operational stability of, vehicle manufacturers
and other suppliers, risks associated with our indebtedness
(including available borrowing capacity, compliance with financial
covenants and ability to refinance or repay indebtedness on
favorable terms), acts of God or other incidents which may
adversely impact our operations and financial performance,
government regulations, legislation and others set forth throughout
"Part II, Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations" and in "Part I, Item 1A. Risk
Factors" of our most recent Annual Report on Form 10-K, and from
time to time in our other filings with the SEC. We urge you to
carefully consider this information and not place undue reliance on
forward-looking statements. We undertake no duty to update our
forward-looking statements, including our earnings outlook, which
are made as of the date of this release.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures such as
adjusted cash flow from operations, adjusted net loss, adjusted net
income, adjusted diluted earnings per share, adjusted cost
applicable to revenues, adjusted income before income taxes,
adjusted income tax benefit, adjusted SG&A, adjusted SG&A
as a percentage of revenue, adjusted SG&A as a percentage of
gross profit, adjusted income from operations as a percentage of
revenue, adjusted income from operations as a percentage of gross
profit, adjusted income before income taxes as a percentage of
revenue and adjusted net income as a percentage of revenue.
Non-GAAP measures do not have definitions under GAAP and may be
defined differently by and not comparable to similarly titled
measures used by other companies. As a result, we review any
non-GAAP financial measures in connection with a review of the most
directly comparable measures calculated in accordance with GAAP. We
caution you not to place undue reliance on such non-GAAP measures,
and also to consider them with the most directly comparable GAAP
measures. We present cash flows from operations in the following
tables, adjusted to include the change in non-trade floor plan debt
to improve the visibility of cash flows related to vehicle
financing. As required by SEC rules, we have reconciled these
measures to the most directly comparable GAAP measures in the
attachments to this release. We believe the non-GAAP financial
measures we present improve the transparency of our disclosures;
provide a meaningful presentation of our results from core business
operations, because they exclude items not related to core business
operations and other non-cash items; and improve the
period-to-period comparability of our results from core business
operations. These presentations should not be considered an
alternative to GAAP measures.
Contact:
investors@lazydays.com
|
Results of
Operations
|
Three Months
Ended
December 31,
|
|
|
Year Ended
December 31,
|
|
|
(In thousands except
share and per share amounts)
|
2023
|
2022
|
Change
|
|
2023
|
2022
|
%
Change
|
|
Revenues
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
$
99,351
|
$ 137,729
|
(27.9) %
|
|
$ 631,748
|
$ 777,807
|
(18.8) %
|
|
Pre-owned vehicle
retail
|
72,433
|
74,927
|
(3.3) %
|
|
323,258
|
394,582
|
(18.1) %
|
|
Vehicle
wholesale
|
2,526
|
2,416
|
4.5 %
|
|
8,006
|
21,266
|
(62.4) %
|
|
Finance and
insurance
|
11,054
|
13,891
|
(20.4) %
|
|
62,139
|
75,482
|
(17.7) %
|
|
Service, body and
parts and other
|
12,665
|
14,527
|
(12.8) %
|
|
57,596
|
57,824
|
(0.4) %
|
|
Total
revenue
|
198,029
|
243,490
|
(18.7) %
|
|
1,082,747
|
1,326,961
|
(18.4) %
|
|
|
|
|
|
|
|
|
|
Cost applicable to
revenue
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
86,655
|
115,155
|
(24.7) %
|
|
552,311
|
632,316
|
(12.7) %
|
|
Pre-owned vehicle
retail
|
59,848
|
59,186
|
1.1 %
|
|
259,494
|
301,565
|
(14.0) %
|
|
Vehicle
wholesale
|
2,746
|
2,395
|
14.7 %
|
|
8,178
|
21,620
|
(62.2) %
|
|
Finance and
insurance
|
475
|
513
|
(7.5) %
|
|
2,547
|
2,729
|
(6.7) %
|
|
Service, body and
parts, other
|
5,916
|
7,714
|
(23.3) %
|
|
27,723
|
27,657
|
0.2 %
|
|
LIFO
|
(297)
|
4,153
|
NM
|
|
3,752
|
12,383
|
(69.7) %
|
|
Total cost applicable
to revenue
|
155,343
|
189,116
|
(17.9) %
|
|
854,005
|
998,270
|
(14.5) %
|
|
Gross profit
|
42,686
|
54,374
|
(21.5) %
|
|
228,742
|
328,691
|
(30.4) %
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
5,048
|
4,420
|
14.2 %
|
|
18,512
|
16,758
|
10.5 %
|
|
Selling, general, and
administrative expenses
|
46,679
|
47,649
|
(2.0) %
|
|
198,962
|
222,218
|
(10.5) %
|
|
Goodwill
impairment
|
117,970
|
—
|
NM
|
|
117,970
|
—
|
NM
|
|
(Loss) income from
operations
|
(127,011)
|
2,305
|
NM
|
|
(106,702)
|
89,715
|
NM
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Floor plan interest
expense
|
(7,196)
|
(3,534)
|
103.6 %
|
|
(24,820)
|
(8,596)
|
188.7 %
|
|
Other interest
expense
|
(3,578)
|
(2,158)
|
65.8 %
|
|
(10,062)
|
(7,996)
|
25.8 %
|
|
Change in fair value
of warrant liabilities
|
—
|
1,782
|
(100.0) %
|
|
856
|
12,453
|
(93.1) %
|
|
Total other expense,
net
|
(10,774)
|
(3,910)
|
175.5 %
|
|
(34,026)
|
(4,139)
|
NM
|
|
(Loss) income before
income tax expense
|
(137,785)
|
(1,605)
|
NM
|
|
(140,728)
|
85,576
|
NM
|
|
Income tax benefit
(expense)
|
29,820
|
205
|
NM
|
|
30,462
|
(19,183)
|
NM
|
|
Net (loss)
income
|
(107,965)
|
(1,400)
|
NM
|
|
(110,266)
|
66,393
|
NM
|
|
Dividends on Series A
convertible preferred stock
|
(1,210)
|
(1,210)
|
— %
|
|
(4,800)
|
(4,801)
|
— %
|
|
Net (loss) income and
comprehensive (loss) income attributable to common stock and
participating securities
|
$
(109,175)
|
$
(2,610)
|
NM
|
|
$
(115,066)
|
$
61,592
|
NM
|
|
|
|
|
|
|
|
|
|
EPS:
|
|
|
|
|
|
|
|
|
Basic
|
$
(7.59)
|
$
(0.24)
|
NM
|
|
$
(8.41)
|
$
3.47
|
NM
|
|
Diluted
|
$
(7.59)
|
$
(0.24)
|
NM
|
|
$
(8.45)
|
$
2.42
|
NM
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
14,384,961
|
10,928,362
|
31.6 %
|
|
13,689,001
|
11,701,302
|
17.0 %
|
|
Diluted
|
14,384,961
|
10,928,362
|
31.6 %
|
|
13,689,001
|
12,797,796
|
7.0 %
|
|
|
NM - not
Meaningful
|
|
Total Results
Summary
|
Three Months
Ended
December 31,
|
|
|
|
Year Ended
December 31,
|
|
|
|
2023
|
2022
|
Change
|
|
|
2023
|
2022
|
Change
|
|
|
Gross profit
margins
|
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
12.8 %
|
16.4 %
|
(360)
|
bps
|
|
12.6 %
|
18.7 %
|
(610)
|
bps
|
|
Pre-owned vehicle
retail
|
17.4 %
|
21.0 %
|
(360)
|
bps
|
|
19.7 %
|
23.6 %
|
(390)
|
bps
|
|
Vehicle
wholesale
|
(8.7) %
|
0.9 %
|
(960)
|
bps
|
|
(2.2) %
|
(1.7) %
|
(50)
|
bps
|
|
Finance and
insurance
|
95.7 %
|
96.3 %
|
(60)
|
bps
|
|
95.9 %
|
96.4 %
|
(50)
|
bps
|
|
Service, body and
parts and other
|
53.3 %
|
46.9 %
|
640
|
bps
|
|
51.9 %
|
52.2 %
|
(30)
|
bps
|
|
Total gross profit
margin
|
21.6 %
|
22.3 %
|
(70)
|
bps
|
|
21.1 %
|
24.8 %
|
(370)
|
bps
|
|
Total gross profit
margin (excluding LIFO)
|
21.4 %
|
24.0 %
|
(260)
|
bps
|
|
21.5 %
|
25.7 %
|
(420)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
Retail units
sold
|
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
1,264
|
1,501
|
(15.8) %
|
|
|
7,269
|
8,603
|
(15.5) %
|
|
|
Pre-owned vehicle
retail
|
1,164
|
999
|
16.5 %
|
|
|
5,018
|
5,409
|
(7.2) %
|
|
|
Total retail units
sold
|
2,428
|
2,500
|
(2.9) %
|
|
|
12,287
|
14,012
|
(12.3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling
price per retail unit
|
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
$
78,600
|
$
91,758
|
(14.3) %
|
|
|
$ 86,910
|
$ 90,411
|
(3.9) %
|
|
|
Pre-owned vehicle
retail
|
62,228
|
75,001
|
(17.0) %
|
|
|
64,420
|
72,949
|
(11.7) %
|
|
|
|
|
|
|
|
|
|
|
|
|
Average gross profit
per retail unit (excluding LIFO)
|
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
$
10,044
|
$
15,040
|
(33.2) %
|
|
|
$ 10,928
|
$ 16,912
|
(35.4) %
|
|
|
Pre-owned vehicle
retail
|
10,812
|
15,756
|
(31.4) %
|
|
|
12,707
|
17,197
|
(26.1) %
|
|
|
Finance and
insurance
|
4,357
|
5,351
|
(18.6) %
|
|
|
4,850
|
5,192
|
(6.6) %
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
mix
|
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
50.2 %
|
56.6 %
|
|
|
|
58.3 %
|
58.6 %
|
|
|
|
Pre-owned vehicle
retail
|
36.6 %
|
30.8 %
|
|
|
|
29.9 %
|
29.7 %
|
|
|
|
Vehicle
wholesale
|
1.3 %
|
1.0 %
|
|
|
|
0.7 %
|
1.6 %
|
|
|
|
Finance and
insurance
|
5.6 %
|
5.7 %
|
|
|
|
5.7 %
|
5.7 %
|
|
|
|
Service, body and
parts and other
|
6.3 %
|
5.9 %
|
|
|
|
5.4 %
|
4.4 %
|
|
|
|
100.0 %
|
100.0 %
|
|
|
|
100.0 %
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
mix
|
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
29.7 %
|
41.5 %
|
|
|
|
34.7 %
|
44.3 %
|
|
|
|
Pre-owned vehicle
retail
|
29.5 %
|
28.9 %
|
|
|
|
27.9 %
|
28.3 %
|
|
|
|
Vehicle
wholesale
|
(0.5) %
|
— %
|
|
|
|
(0.1) %
|
(0.1) %
|
|
|
|
Finance and
insurance
|
24.8 %
|
24.6 %
|
|
|
|
26.1 %
|
22.1 %
|
|
|
|
Service, body and
parts and other
|
15.8 %
|
12.5 %
|
|
|
|
13.1 %
|
9.2 %
|
|
|
|
LIFO
|
0.7 %
|
(7.6) %
|
|
|
|
(1.6) %
|
(3.8) %
|
|
|
|
100.0 %
|
100.0 %
|
|
|
|
100.0 %
|
100.0 %
|
|
|
|
Other
Metrics
|
|
Adjusted
|
|
As
Reported
|
|
Adjusted
|
|
As
Reported
|
|
Three Months
Ended
December 31,
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
Year Ended
December 31,
|
|
2023
|
2022
|
|
2023
|
2022
|
|
2023
|
2022
|
|
2023
|
2022
|
|
SG&A as a % of
revenue
|
23.0 %
|
19.4 %
|
|
23.6 %
|
19.6 %
|
|
18.0 %
|
16.7 %
|
|
18.4 %
|
16.7 %
|
|
SG&A as % of gross
profit, excluding LIFO
|
107.4 %
|
80.6 %
|
|
110.1 %
|
81.4 %
|
|
83.6 %
|
64.8 %
|
|
85.6 %
|
65.2 %
|
|
Income from operations
as a % of revenue
|
NM
|
2.9 %
|
|
NM
|
0.9 %
|
|
1.8 %
|
7.8 %
|
|
NM
|
6.8 %
|
|
Income from operations
as a % of gross profit, excluding LIFO
|
NM
|
11.9 %
|
|
NM
|
3.9 %
|
|
8.4 %
|
30.3 %
|
|
NM
|
26.3 %
|
|
Income (loss) before
income taxes as % of revenue
|
NM
|
0.5 %
|
|
NM
|
NM
|
|
NM
|
6.5 %
|
|
NM
|
6.4 %
|
|
Net income (loss) as a
% of revenue
|
NM
|
0.4 %
|
|
NM
|
NM
|
|
NM
|
4.8 %
|
|
NM
|
5.0 %
|
|
|
NM - not
meaningful
|
|
Other
Highlights
|
|
|
|
As of December
31,
|
|
|
2023
|
|
2022
|
|
Store
Count
|
|
|
|
|
|
Dealerships
|
|
24
|
|
18
|
|
|
|
|
|
|
Days
Supply*
|
|
|
|
|
|
New vehicle
inventory
|
|
380
|
|
250
|
|
Pre-owned vehicle
inventory
|
|
132
|
|
78
|
|
|
* Days supply
calculated based on current inventory levels and a 90 day
historical average cost of sales level.
|
|
Financial
Covenants
|
|
|
|
|
|
As of
|
|
|
Requirement
|
|
December 31,
2023
|
|
Fixed charge coverage
ratio
|
|
Not less than 1.25 to
1
|
|
1.27
|
|
Leverage
ratio
|
|
Waived
|
|
NM
|
|
Current
ratio
|
|
Waived
|
|
NM
|
|
|
NM - not
meaningful
|
|
Same-Store Results
Summary
|
Three Months
Ended
December 31,
|
|
|
|
Year Ended
December 31,
|
|
|
|
|
(In thousands except
share and per share amounts)
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
$ 84,837
|
|
$
129,866
|
|
(34.7) %
|
|
$
557,176
|
|
$
731,572
|
|
(23.8) %
|
|
|
Pre-owned vehicle
retail
|
62,307
|
|
72,739
|
|
(14.3) %
|
|
290,242
|
|
378,117
|
|
(23.2) %
|
|
|
Vehicle
wholesale
|
2,334
|
|
2,377
|
|
(1.8) %
|
|
7,567
|
|
21,167
|
|
(64.2) %
|
|
|
Finance and
insurance
|
9,138
|
|
13,310
|
|
(31.3) %
|
|
54,395
|
|
71,899
|
|
(24.3) %
|
|
|
Service, body and
parts and other
|
11,108
|
|
13,901
|
|
(20.1) %
|
|
51,392
|
|
55,603
|
|
(7.6) %
|
|
|
Total
revenue
|
169,724
|
|
232,193
|
|
(26.9) %
|
|
960,772
|
|
1,258,358
|
|
(23.6) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
10,811
|
|
21,355
|
|
(49.4) %
|
|
69,710
|
|
137,015
|
|
(49.1) %
|
|
|
Pre-owned vehicle
retail
|
10,664
|
|
15,170
|
|
(29.7) %
|
|
56,773
|
|
88,854
|
|
(36.1) %
|
|
|
Vehicle
wholesale
|
(223)
|
|
19
|
|
NM
|
|
(171)
|
|
(354)
|
|
NM
|
|
|
Finance and
insurance
|
8,733
|
|
12,823
|
|
(31.9) %
|
|
52,132
|
|
69,285
|
|
(24.8) %
|
|
|
Service, body and
parts and other
|
5,941
|
|
8,059
|
|
(26.3) %
|
|
26,593
|
|
29,109
|
|
(8.6) %
|
|
|
LIFO
|
298
|
|
(4,153)
|
|
NM
|
|
(3,752)
|
|
(12,383)
|
|
NM
|
|
|
Total gross
profit
|
36,224
|
|
53,273
|
|
(32.0) %
|
|
201,285
|
|
311,526
|
|
(35.4) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
margins
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
12.7 %
|
|
16.4 %
|
|
(370)
|
bps
|
12.5 %
|
|
18.7 %
|
|
(460)
|
bps
|
|
Pre-owned vehicle
retail
|
17.1 %
|
|
20.9 %
|
|
(380)
|
bps
|
19.6 %
|
|
23.5 %
|
|
(390)
|
bps
|
|
Vehicle
wholesale
|
(9.5) %
|
|
0.8 %
|
|
NM
|
bps
|
(2.3) %
|
|
(1.7) %
|
|
(60)
|
bps
|
|
Finance and
insurance
|
95.6 %
|
|
96.3 %
|
|
(70)
|
bps
|
95.8 %
|
|
96.4 %
|
|
(60)
|
bps
|
|
Service, body and
parts and other
|
53.5 %
|
|
58.0 %
|
|
(450)
|
bps
|
51.7 %
|
|
52.4 %
|
|
(70)
|
bps
|
|
Total gross profit
margin
|
21.3 %
|
|
22.9 %
|
|
(170)
|
bps
|
21.0 %
|
|
24.8 %
|
|
(190)
|
bps
|
|
Total gross profit
margin (excluding LIFO)
|
21.2 %
|
|
24.7 %
|
|
(350)
|
bps
|
21.3 %
|
|
25.7 %
|
|
(440)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail units
sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
1,033
|
|
1,396
|
|
(26.0) %
|
|
6,142
|
|
7,867
|
|
(21.9) %
|
|
|
Pre-owned vehicle
retail
|
958
|
|
951
|
|
0.7 %
|
|
4,362
|
|
5,049
|
|
(13.6) %
|
|
|
Total retail units
sold
|
1,991
|
|
2,347
|
|
(15.2) %
|
|
10,504
|
|
12,916
|
|
(18.7) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling
price per retail unit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
$ 82,127
|
|
$ 93,027
|
|
(11.7) %
|
|
$ 90,716
|
|
$ 92,993
|
|
(2.4) %
|
|
|
Pre-owned vehicle
retail
|
65,039
|
|
76,487
|
|
(15.0) %
|
|
66,539
|
|
74,889
|
|
(11.2) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average gross profit
per retail unit (excluding LIFO)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
$ 10,465
|
|
$ 15,297
|
|
(31.6) %
|
|
$ 11,350
|
|
$ 17,417
|
|
(34.8) %
|
|
|
Pre-owned vehicle
retail
|
11,132
|
|
15,951
|
|
(30.2) %
|
|
13,015
|
|
17,598
|
|
(26.0) %
|
|
|
Finance and
insurance
|
4,386
|
|
5,464
|
|
(19.7) %
|
|
4,963
|
|
5,364
|
|
(7.5) %
|
|
|
Total vehicle
retail
|
15,172
|
|
21,026
|
|
(28) %
|
|
17,004
|
|
22,852
|
|
(25.6) %
|
|
|
|
NM - not
meaningful
|
|
Condensed
Consolidated Balance Sheets
|
|
As of December
31,
|
|
(In
thousands)
|
|
2023
|
|
2022
|
|
Current
assets
|
|
|
|
|
|
Cash
|
|
$
58,085
|
|
$
61,687
|
|
Receivables, net of
allowance for doubtful accounts
|
|
22,694
|
|
25,053
|
|
Inventories
|
|
456,087
|
|
378,881
|
|
Income tax
receivable
|
|
7,419
|
|
7,912
|
|
Prepaid expenses and
other
|
|
2,614
|
|
3,316
|
|
Total current
assets
|
|
546,899
|
|
476,849
|
|
|
|
|
|
|
Long-term
assets
|
|
|
|
|
|
Property and
equipment, net
|
|
265,726
|
|
158,991
|
|
Operating lease
assets
|
|
26,377
|
|
26,984
|
|
Goodwill
|
|
—
|
|
83,460
|
|
Intangible assets,
net
|
|
80,546
|
|
81,665
|
|
Other
assets
|
|
2,750
|
|
2,769
|
|
Deferred income tax
asset
|
|
15,444
|
|
—
|
|
Total
assets
|
|
$
937,742
|
|
$
830,718
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Floor plan
notes payable
|
|
446,783
|
|
348,735
|
|
Other current
liabilities
|
|
53,197
|
|
50,890
|
|
Total current liabilities
|
|
499,980
|
|
399,625
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
Financing
liability, non-current portion, net
|
|
91,401
|
|
89,770
|
|
Revolving line
of credit
|
|
49,500
|
|
—
|
|
Long-term debt,
non-current portion, net
|
|
61,429
|
|
10,131
|
|
Other long-term
liabilities
|
|
22,242
|
|
39,197
|
|
Total liabilities
|
|
724,552
|
|
538,723
|
|
|
|
|
|
|
Series A
Convertible Preferred Stock
|
|
56,193
|
|
54,983
|
|
Stockholders'
Equity
|
|
156,997
|
|
237,012
|
|
Total liabilities and stockholders' equity
|
|
$
937,742
|
|
$
830,718
|
|
Condensed Statements
of Cash Flows
|
|
|
|
Year
Ended December 31,
|
|
(In
thousands)
|
|
2023
|
|
2022
|
|
Cash Flows From
Operating Activities
|
|
|
|
|
|
Net (loss)
income
|
|
$
(110,266)
|
|
$
66,393
|
|
Adjustments to
reconcile net (loss) income to net cash used in operating
activities:
|
|
|
|
|
|
Stock-based
compensation
|
|
2,249
|
|
2,813
|
|
Bad debt
expense
|
|
12
|
|
(526)
|
|
Depreciation and
amortization of property and equipment
|
|
10,954
|
|
9,480
|
|
Amortization of
intangible assets
|
|
7,558
|
|
7,278
|
|
Amortization of debt
discount
|
|
312
|
|
431
|
|
Non-cash lease
expense
|
|
296
|
|
173
|
|
Loss (gain) on sale of
property and equipment
|
|
28
|
|
(20)
|
|
Goodwill
Impairment
|
|
117,970
|
|
—
|
|
Deferred income
taxes
|
|
(30,980)
|
|
1,872
|
|
Change in fair value
of warrant liabilities
|
|
(856)
|
|
(12,453)
|
|
Impairment
charges
|
|
629
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
—
|
|
Receivables
|
|
2,347
|
|
6,512
|
|
Inventories
|
|
(42,901)
|
|
(127,594)
|
|
Prepaid expenses and
other
|
|
450
|
|
(613)
|
|
Income tax
receivable/payable
|
|
492
|
|
(6,725)
|
|
Other
assets
|
|
(199)
|
|
(1,146)
|
|
Accounts payable and
Accrued expenses and other current liabilities
|
|
5,425
|
|
(17,835)
|
|
Total
Adjustments
|
|
73,786
|
|
(138,353)
|
|
Net Cash Used In
Operating Activities
|
|
$
(36,480)
|
|
$
(71,960)
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31,
|
|
(In
thousands)
|
|
2023
|
|
2022
|
|
Net cash provided by
operating activities, as reported
|
|
$
(36,480)
|
|
$
(71,960)
|
|
Net borrowings on floor
plan notes payable
|
|
98,530
|
|
148,180
|
|
Minus borrowings on
floor plan notes payable associated with acquired new
inventory
|
|
(28,751)
|
|
—
|
|
Net cash provided by
operating activities, as adjusted
|
|
$
33,299
|
|
$
76,220
|
|
Reconciliation of
Non-GAAP Measures
|
|
|
Three Months Ended
December 31, 2023
|
|
($ in thousands,
except per share amounts)
|
As
reported
|
LIFO
|
Acquisition
expense
|
Impairment
charge
|
Adjusted
|
|
Costs applicable to
revenues
|
$
155,343
|
$
298
|
$
—
|
$
—
|
$ 155,642
|
|
Selling, general and
administrative expenses
|
46,679
|
|
(1,142)
|
—
|
45,537
|
|
Goodwill
impairment
|
117,970
|
—
|
—
|
(117,970)
|
—
|
|
(Loss) income from
operations
|
(127,011)
|
(298)
|
1,142
|
117,970
|
(8,197)
|
|
(Loss) income before
income tax expense
|
$
(137,785)
|
$
(298)
|
$
1,142
|
$
117,970
|
$ (18,971)
|
|
Income tax benefit
(expense)
|
29,820
|
62
|
(236)
|
(24,427)
|
5,219
|
|
Net (loss)
income
|
$
(107,965)
|
$
(236)
|
$
906
|
$
93,543
|
$ (13,752)
|
|
|
|
|
|
|
|
Diluted net loss per
share
|
$
(7.59)
|
|
|
|
$
(1.09)
|
|
Shares used for diluted
calculation
|
14,384,961
|
|
|
|
|
|
Three Months Ended
December 31, 2022
|
|
|
($ in thousands,
except per share amounts)
|
As
reported
|
Gain on change
in fair value of
warrant liabilities
|
LIFO
|
Acquisition
expense
|
Severance and
transition costs
|
Adjusted
|
|
Costs applicable to
revenues
|
$
189,116
|
$
—
|
$ (4,153)
|
$
—
|
$
—
|
$
184,963
|
|
Selling, general and
administrative expenses
|
47,649
|
—
|
—
|
(203)
|
(299)
|
47,147
|
|
Income from
operations
|
2,305
|
—
|
4,153
|
203
|
299
|
6,960
|
|
Gain on change in fair
value of warrant liabilities
|
1,782
|
(1,782)
|
—
|
—
|
—
|
—
|
|
(Loss) income before
income taxes
|
$ (1,605)
|
$
(1,782)
|
$
4,153
|
$
203
|
$
299
|
1,268
|
|
Income tax benefit
(expense)
|
205
|
—
|
(458)
|
(46)
|
(33)
|
(332)
|
|
Net (loss)
income
|
$ (1,400)
|
$
(1,782)
|
$
3,695
|
$
157
|
$
266
|
$
936
|
|
|
|
|
|
|
|
|
Diluted net loss per
share
|
$
(0.24)
|
|
|
|
|
$
(0.02)
|
|
Shares used for diluted
calculation
|
10,928,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31, 2023
|
|
($ in thousands,
except per share amounts)
|
As
reported
|
Gain on change
in fair value of
warrant liabilities
|
LIFO
|
Acquisition
expense
|
Severance and
transition costs
|
Impairment
charge
|
Storm
Reserve
|
Adjusted
|
|
Costs applicable to
revenues
|
$
854,005
|
$
—
|
$ (3,752)
|
$
—
|
$
—
|
$
—
|
$
—
|
$ 850,253
|
|
Selling, general and
administrative expenses
|
198,962
|
—
|
—
|
(2,340)
|
(1,278)
|
(629)
|
(300)
|
194,415
|
|
Goodwill
impairment
|
117,970
|
|
|
|
|
(117,970)
|
|
—
|
|
(Loss) income from
operations
|
(106,702)
|
—
|
3,752
|
2,340
|
1,278
|
118,599
|
300
|
19,567
|
|
Gain on change in fair
value of warrant liabilities
|
856
|
(856)
|
—
|
—
|
—
|
—
|
—
|
—
|
|
(Loss) income before
income taxes
|
$
(140,728)
|
$
(856)
|
$
3,752
|
$
2,340
|
$
1,278
|
$ 118,599
|
$
300
|
$ (15,315)
|
|
Income tax benefit
(expense)
|
30,462
|
—
|
(788)
|
(492)
|
(360)
|
(24,920)
|
(106)
|
3,796
|
|
Net (loss)
income
|
$
(110,266)
|
$
(856)
|
$
2,964
|
$
1,848
|
$
918
|
$
93,679
|
$
194
|
$ (11,519)
|
|
|
|
|
|
|
|
|
|
|
Diluted net loss per
share
|
$
(8.45)
|
|
|
|
|
|
|
$ (1.24)
|
|
Shares used for diluted
calculation
|
13,689,001
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31, 2022
|
|
($ in thousands,
except per share amounts)
|
As
reported
|
Gain on change
in fair value of
warrant liabilities
|
LIFO
|
Acquisition
expense
|
Severance and
transition costs
|
Adjusted
|
|
Costs applicable to
revenues
|
$ 998,270
|
$
—
|
(12,383)
|
$
—
|
$
—
|
$
985,887
|
|
Selling, general and
administrative expenses
|
222,218
|
—
|
—
|
(286)
|
(900)
|
221,032
|
|
Income from
operations
|
89,715
|
—
|
12,383
|
286
|
900
|
103,284
|
|
Gain on change in fair
value of warrant liabilities
|
12,453
|
(12,453)
|
—
|
—
|
—
|
—
|
|
Income (loss) before
income taxes
|
$
85,576
|
$
(12,453)
|
$
12,383
|
$
286
|
$
900
|
$
86,692
|
|
Income tax
expense
|
(19,183)
|
—
|
(3,143)
|
(73)
|
(228)
|
(22,627)
|
|
Net income
(loss)
|
$
66,393
|
$
(12,453)
|
$
9,240
|
$
213
|
$
672
|
$
64,065
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
2.42
|
|
|
|
|
$
3.05
|
|
Shares used for diluted
calculation
|
12,797,796
|
|
|
|
|
|
|
|
* In periods where the
change in fair value of warrants is a gain, the diluted EPS
calculation is not affected by this line item.
|
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SOURCE Lazydays