TAMPA, Fla., March 31, 2025 /PRNewswire/ -- Lazydays Holdings, Inc. (NasdaqCM: GORV) ("Lazydays," the "Company" or "we") today reported financial results for the fourth quarter and fiscal year ended December 31, 2024.
Ron Fleming, Interim CEO, said, "2024 was a year of significant transformation for Lazydays, marked by our leadership transition and the execution of a series of transactions designed to strengthen our balance sheet and streamline our operational footprint. While our fourth quarter and full year 2024 results were challenging, we believe the steps we have taken, and continue to take, will create a more durable and agile company that is positioned for the future. As we look ahead, we remain laser focused on ensuring we have the right dealership footprint - as evidenced by our announced letter of intent to further divest three store locations - while maximizing the operational performance of the stores within our footprint to drive long-term shareholder value."
Total revenue for the fourth quarter 2024 was $159.9 million compared to $198.0 million for the same period in 2023. Total revenue for the year ended December 31, 2024 was $871.6 million compared to $1,082.7 million for the same period in 2023.
Fourth quarter 2024 net loss was $96.1 million compared to net loss of $108.0 million for the same period in 2023. Fourth quarter 2024 Adjusted EBITDA, a non-GAAP measure, was $(24.3) million compared to Adjusted EBITDA of $(10.7) million for the same period in 2023.* We recognized impairment charges of $39.1 million related to assets held for sale during the fourth quarter 2024 and $118.6 million related to goodwill during the fourth quarter 2023. The results for the fourth quarter 2024 were also negatively impacted by a non-cash loss on change in fair value of warrant liabilities of $16.3 million.
Net loss for the year ended December 31, 2024 was $180.0 million compared to net loss of $110.3 million for the same period in 2023. Adjusted EBITDA for the year ended December 31, 2024 was $(58.7) million compared to Adjusted EBITDA of $11.6 million for the same period in 2023.* Net loss per diluted share for the year ended December 31, 2024 was $8.90 compared to net loss per diluted share of $8.45 for the same period in 2023.
*Refer to the reconciliation of net income to Adjusted EBITDA under "Reconciliation of Non-GAAP Measures" in this press release.
Recent Developments
Lazydays today announced that it has signed a letter of intent with General RV Center to divest three store locations from the Company's footprint: Ft. Pierce, Florida; Longmont, Colorado; and Mesa, Arizona. If completed, this transaction will add meaningful cash to the Company's balance sheet, reduce our indebtedness and decrease geographic redundancy in its footprint. The letter of intent is generally nonbinding, with the exception of a 75-day exclusivity provision relating to the three stores.
Additionally, during February 2025 and March 2025, the Company completed the sales of the following facilities and any associated owned real estate to subsidiaries of Camping World Holdings, Inc. (collectively, "Camping World") under an asset purchase agreement and a real estate purchase agreement: Elkhart, Indiana; Surprise, Arizona; Murfreesboro, Tennessee; Sturtevant, Wisconsin; and Woodland, Washington. In March 2025, Camping World elected to not close on the purchase of two of the Company's dealerships located in Portland, Oregon and Council Bluffs, Iowa.
The Company delivered written notice to Camping World to exercise its remedy under the asset purchase agreement for its failure to complete the Portland, Oregon and Council Bluffs, Iowa closings (namely to relieve the Company from any obligation to issue 9,708,737 shares of its common stock to Camping World) and to terminate the asset purchase agreement effective on March 31, 2025, the outside date under the asset purchase agreement.
In March 2025, we entered into a Limited Waiver and Consent with Respect to Credit Agreement (the "Waiver") with Manufacturers and Traders Trust Company, as Administrative Agent, and certain lenders under the Second Amended and Restated Credit Agreement dated as of February 21, 2023. For more information on the Waiver, please see our Current Report on Form 8-K filed on March 28, 2025 with the U.S. Securities and Exchange Commission.
Conference Call Information
We have scheduled a conference call at 8:30 AM Eastern Time on Monday, March 31, 2025 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.
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 financing transactions 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.
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 our ability to obtain further waivers or amendments to credit agreements, available borrowing capacity, compliance with financial covenants and ability to refinance or repay indebtedness on favorable terms or at all), acts of God or other incidents which may adversely impact our operations and financial performance, government regulations, legislation and others set forth in the Company's filings with the U.S. Securities and Exchange Commission, including those described in the "Risk Factors" section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements made herein and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and we disclaim any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law.
Contact:
[email protected]
Results of Operations | |||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||
(In thousands except share and per share amounts) | 2024 | 2023 | 2024 | 2023 | |||
Revenue | |||||||
New vehicle retail | $ 94,699 | $ 99,351 | $ 513,014 | $ 631,748 | |||
Pre-owned vehicle retail | 37,233 | 72,433 | 224,855 | 323,258 | |||
Vehicle wholesale | 1,809 | 2,526 | 13,127 | 8,006 | |||
Consignment vehicle | 1,316 | - | 3,293 | - | |||
Finance and insurance | 12,691 | 11,054 | 63,394 | 62,139 | |||
Service, body and parts and other | 12,131 | 12,665 | 53,879 | 57,596 | |||
Total revenue | 159,879 | 198,029 | 871,562 | 1,082,747 | |||
Cost applicable to revenue | |||||||
New vehicle retail | 84,090 | 86,655 | 472,315 | 552,311 | |||
Pre-owned vehicle retail | 33,267 | 59,848 | 191,070 | 259,494 | |||
Vehicle wholesale | 1,782 | 2,746 | 15,803 | 8,178 | |||
Finance and insurance | 371 | 475 | 2,252 | 2,547 | |||
Service, body and parts and other | 6,232 | 5,916 | 25,411 | 27,723 | |||
LIFO | 3,765 | (297) | 3,856 | 3,752 | |||
Total cost applicable to revenue | 129,507 | 155,343 | 710,707 | 854,005 | |||
Gross profit | 30,372 | 42,686 | 160,855 | 228,742 | |||
Depreciation and amortization | 5,038 | 5,048 | 20,625 | 18,512 | |||
Selling, general, and administrative expenses | 53,389 | 46,040 | 200,087 | 198,305 | |||
Impairment charges | 39,093 | 118,599 | 39,093 | 118,599 | |||
Net loss from operations | (67,148) | (127,001) | (98,950) | (106,674) | |||
Other income (expense): | |||||||
Floor plan interest expense | (5,291) | (7,196) | (25,036) | (24,820) | |||
Other interest expense | (5,954) | (3,578) | (21,878) | (10,062) | |||
Change in fair value of warrant liabilities | (16,254) | - | (17,053) | 856 | |||
Loss on sale of property and equipment | (1,438) | (10) | (394) | (28) | |||
Total other expense, net | (28,937) | (10,784) | (64,361) | (34,054) | |||
Loss before income taxes | (96,085) | (137,785) | (163,311) | (140,728) | |||
Income tax (expense) benefit | (12) | 29,820 | (16,652) | 30,462 | |||
Net loss | $ (96,097) | $ (107,965) | $ (179,963) | $ (110,266) | |||
Dividends on Series A Convertible Preferred Stock | (1,080) | (1,210) | (7,254) | (4,800) | |||
Net loss and comprehensive loss attributable to common stock and participating securities | $ (97,177) | $ (109,175) | $ (187,217) | $ (115,066) | |||
Loss per share: | |||||||
Basic | $ (2.39) | $ (7.59) | $ (8.90) | $ (8.41) | |||
Diluted | $ (2.39) | $ (7.59) | $ (8.90) | $ (8.45) | |||
Weighted average shares outstanding: | |||||||
Basic | 39,532,129 | 14,384,961 | 20,713,356 | 13,689,001 | |||
Diluted | 39,532,129 | 14,384,961 | 20,713,356 | 13,689,001 | |||
Other Metrics and Highlights | |||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Gross profit margins | |||||||
New vehicle retail | 11.2 % | 12.8 % | 7.9 % | 12.6 % | |||
Pre-owned vehicle retail | 10.7 % | 17.4 % | 15.0 % | 19.7 % | |||
Vehicle wholesale | 1.5 % | (8.7) % | (20.4) % | (2.1) % | |||
Consignment vehicle | 100.0 % | - % | 100.0 % | - % | |||
Finance and insurance | 97.1 % | 95.7 % | 96.4 % | 95.9 % | |||
Service, body and parts and other | 48.6 % | 53.3 % | 52.8 % | 51.9 % | |||
Total gross profit margin | 19.0 % | 21.6 % | 18.5 % | 21.1 % | |||
Total gross profit margin (excluding LIFO) | 21.4 % | 21.4 % | 18.9 % | 21.5 % | |||
Retail units sold | |||||||
New vehicle retail | 1,172 | 1,264 | 6,914 | 7,269 | |||
Pre-owned vehicle retail | 741 | 1,164 | 4,238 | 5,018 | |||
Consignment vehicle | 155 | - | 349 | - | |||
Total retail units sold | 2,068 | 2,428 | 11,501 | 12,287 | |||
Average selling price per retail unit | |||||||
New vehicle retail | $ 80,801 | $ 78,600 | $ 74,199 | $ 86,910 | |||
Pre-owned vehicle retail | 50,247 | 62,228 | 53,057 | 64,420 | |||
Average gross profit per retail unit (excluding LIFO) | |||||||
New vehicle retail | $ 9,052 | $ 10,044 | $ 5,886 | $ 10,928 | |||
Pre-owned vehicle retail | 5,352 | 10,812 | 7,972 | 12,707 | |||
Finance and insurance | 5,957 | 4,357 | 5,316 | 4,850 | |||
Revenue mix | |||||||
New vehicle retail | 59.2 % | 50.2 % | 58.9 % | 58.3 % | |||
Pre-owned vehicle retail | 23.3 % | 36.6 % | 25.8 % | 29.9 % | |||
Vehicle wholesale | 1.1 % | 1.3 % | 1.5 % | 0.7 % | |||
Consignment vehicle | 0.8 % | - % | 0.4 % | - % | |||
Finance and insurance | 7.9 % | 5.6 % | 7.3 % | 5.7 % | |||
Service, body and parts and other | 7.7 % | 6.3 % | 6.1 % | 5.4 % | |||
100.0 % | 100.0 % | 100.0 % | 100.0 % | ||||
Gross profit mix | |||||||
New vehicle retail | 34.9 % | 29.7 % | 25.3 % | 34.7 % | |||
Pre-owned vehicle retail | 13.1 % | 29.5 % | 21.0 % | 27.9 % | |||
Vehicle wholesale | 0.1 % | (0.5) % | (1.7) % | (0.1) % | |||
Consignment vehicle | 4.3 % | - % | 2.0 % | - % | |||
Finance and insurance | 40.6 % | 24.8 % | 38.0 % | 26.1 % | |||
Service, body and parts and other | 19.4 % | 15.8 % | 17.7 % | 13.1 % | |||
LIFO | (12.4) % | 0.7 % | (2.3) % | (1.7) % | |||
100.0 % | 100.0 % | 100.0 % | 100.0 % | ||||
Balance Sheets | |||
December 31, | |||
(In thousands) | 2024 | 2023 | |
ASSETS | |||
Current assets: | |||
Cash | $ 24,702 | $ 58,085 | |
Receivables, net of allowance for doubtful accounts | 22,318 | 22,694 | |
Inventories, net | 211,946 | 456,087 | |
Income tax receivable | 6,116 | 7,416 | |
Prepaid expenses and other | 1,823 | 2,614 | |
Assets held for sale, current portion | 86,869 | - | |
Total current assets | 353,774 | 546,896 | |
Property and equipment, net | 174,324 | 265,726 | |
Operating lease right-of-use assets | 13,812 | 26,377 | |
Intangible assets, net | 54,957 | 80,546 | |
Deferred income tax asset | - | 15,444 | |
Other assets | 3,216 | 2,750 | |
Assets held for sale, non-current portion | 75,747 | $ - | |
Total assets | $ 675,830 | $ 937,739 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 22,426 | $ 15,144 | |
Accrued expenses and other current liabilities | 31,211 | 29,160 | |
Floor plan notes payable, net of debt discount | 306,036 | 446,783 | |
Financing liability, current portion | 2,792 | 2,473 | |
Revolving line of credit, current portion | 10,000 | - | |
Long-term debt, current portion, net of debt discount | 1,168 | 1,141 | |
Operating lease liability, current portion | 3,711 | 5,276 | |
Liabilities related to assets held for sale, current portion | 1,530 | - | |
Total current liabilities | 378,874 | 499,977 | |
Long-term liabilities: | |||
Financing liability, non-current portion, net of debt discount | 76,007 | 91,401 | |
Revolving line of credit, non-current portion | 20,344 | 49,500 | |
Long term debt, non-current portion, net of debt discount | 27,417 | 28,075 | |
Related party debt, non-current portion, net of debt discount | 36,217 | 33,354 | |
Operating lease liability, non-current portion | 10,592 | 22,242 | |
Deferred income tax liability | 1,348 | - | |
Warrant liabilities | 21,960 | - | |
Other long-term liabilities | 6,721 | - | |
Liabilities related to assets held for sale, non-current portion | 23,001 | - | |
Total liabilities | 602,481 | 724,549 | |
Series A Convertible Preferred Stock | - | 56,193 | |
Stockholders' Equity | |||
Common stock | 10 | - | |
Additional paid-in capital | 261,465 | 165,988 | |
Treasury stock, at cost | (57,128) | (57,128) | |
Retained (deficit) earnings | (130,998) | 48,137 | |
Total stockholders' equity | 73,349 | 156,997 | |
Total liabilities and stockholders' equity | $ 675,830 | $ 937,739 | |
Statements of Cash Flows | |||
Year Ended December 31, | |||
(In thousands) | 2024 | 2023 | |
Operating Activities | |||
Net loss | $ (179,963) | $ (110,266) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Stock-based compensation | 1,751 | 2,249 | |
Bad debt expense | 407 | 12 | |
Depreciation of property and equipment | 12,716 | 10,954 | |
Amortization of intangible assets | 7,909 | 7,558 | |
Amortization of debt discount | 3,808 | 312 | |
Non-cash operating lease expense | (515) | 296 | |
Loss on sale of property and equipment | 394 | 28 | |
Deferred income taxes | 16,792 | (30,980) | |
Change in fair value of warrant liabilities | 17,053 | (856) | |
Impairment charges | 39,093 | 118,599 | |
Changes in operating assets and liabilities, net of acquisitions: | |||
Receivables | (31) | 2,347 | |
Inventories | 157,359 | (42,901) | |
Prepaid expenses and other | 703 | 450 | |
Income tax receivable/payable | 1,300 | 492 | |
Other assets | (476) | (199) | |
Accounts payable, accrued expenses and other current liabilities | 16,054 | 5,425 | |
Net cash provided by (used in) operating activities | 94,354 | (36,480) | |
Investing Activities | |||
Cash paid for acquisitions, net of cash received | - | (97,727) | |
Net proceeds from sales of property and equipment | 10,893 | - | |
Purchases of property and equipment | (19,021) | (95,237) | |
Net cash used in investing activities | (8,128) | (192,964) | |
Financing Activities | |||
Net (repayments) borrowings under M&T bank floor plan | (141,110) | 98,530 | |
Principal (repayments) borrowings on revolving line of credit | (19,156) | 49,500 | |
Principal repayments on long-term debt and finance liabilities | (11,713) | (11,130) | |
Proceeds from issuance of long-term debt and finance liabilities | 16,429 | 64,005 | |
Loan issuance costs | (2,431) | (3,015) | |
Payment of dividends on Series A preferred stock | - | (4,800) | |
Repurchase of Treasury Stock | - | (109) | |
Proceeds from shares issued pursuant to the Employee Stock Purchase Plan | 113 | 413 | |
Proceeds from exercise of warrants | - | 30,543 | |
Proceeds from exercise of stock options | - | 1,283 | |
Disgorgement of short-swing profits | - | 622 | |
Net proceeds from the issuance of common stock | 28,259 | - | |
Cash received as nonrefundable deposit pursuant to the Asset Purchase Agreement | 10,000 | - | |
Net cash (used in) provided by financing activities | (119,609) | 225,842 | |
Net decrease in cash | (33,383) | (3,602) | |
Cash, beginning of period | 58,085 | 61,687 | |
Cash, end of period | $ 24,702 | $ 58,085 | |
Reconciliation of Non-GAAP Measures
EBITDA and Adjusted EBITDA
EBITDA, which is a non-GAAP financial measure, is defined as net income (loss) excluding interest expense, income tax expense (benefit) and depreciation and amortization expense. Adjusted EBITDA, which is a non-GAAP financial measure, is further adjusted to include floor plan interest expense and exclude stock-based compensation expense, LIFO adjustment, impairment charges, loss (gain) on sale of property and equipment, and change in fair value of warrant liabilities.
EBITDA and Adjusted EBITDA are not measures of financial performance under GAAP and should not be considered in isolation or as an alternative to net income (loss), cash flows from operating activities or any other measure determined in accordance with GAAP. The items excluded to calculate EBITDA and Adjusted EBITDA are significant components in understanding and assessing the Company's results of operations. The Company's EBITDA and Adjusted EBITDA may not be comparable to a similarly titled measure of another company because other entities may not calculate EBITDA and Adjusted EBITDA in the same manner.
The Company believes Adjusted EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare the Company's core operating results from period to period by removing (i) the impact of the Company's capital structure (interest expense from outstanding debt), (ii) tax consequences, (iii) asset base (depreciation and amortization and LIFO adjustments), (iv) the non-cash charges from asset impairments, stock-based compensation expense and change in fair value of warrant liabilities and (v) gains or losses on the sale of property, plant and equipment. The Company uses Adjusted EBITDA internally to monitor operating results and to evaluate the performance of its business.
The following table presents a reconciliation of net income to EBITDA and adjusted EBITDA for the periods indicated:
Three Months Ended December 31, | Year Ended December 31, | ||||||
(In thousands) | 2024 | 2023 | 2024 | 2023 | |||
Net loss | $ (96,097) | $ (107,965) | $ (179,963) | $ (110,266) | |||
Interest expense, net | 11,245 | 10,774 | 46,914 | 34,882 | |||
Depreciation and amortization | 5,038 | 5,048 | 20,625 | 18,512 | |||
Income tax expense (benefit) | 12 | (29,820) | 16,652 | (30,462) | |||
EBITDA | (79,802) | (121,963) | (95,772) | (87,334) | |||
Floor plan interest expense | (5,291) | (7,196) | (25,036) | (24,820) | |||
LIFO adjustment | 3,765 | (297) | 3,856 | 3,752 | |||
Loss on sale of property and equipment | 1,438 | 10 | 394 | 28 | |||
Impairment charges | 39,093 | 118,599 | 39,093 | 118,599 | |||
Loss (gain) on change in fair value of warrant liabilities | 16,254 | - | 17,053 | (856) | |||
Stock-based compensation expense | 256 | 183 | 1,751 | 2,249 | |||
Adjusted EBITDA | $ (24,287) | $ (10,664) | $ (58,661) | $ 11,618 | |||
SOURCE Lazydays RV
