Tue Aug 13, 2019 7:30am EST

TAMPA, Fla., Aug. 13, 2019 /PRNewswire/ -- Lazydays Holdings, Inc. (Lazydays" or the "Company") (NasdaqCM: LAZY) announced financial results for the second quarter ended June 30, 2019.

Second Quarter Financial Results and Highlights:

  • On June 11, 2019, Lazydays announced entering into a letter of intent to acquire the assets of Alliance Coach Inc. ("Alliance") located near Ocala, Florida. The acquisition closed on August 1, 2019.
  • Lazydays completed the construction of a 30,000 square foot state-of-the-art recreational vehicle ("RV") service facility adjacent to its Minnesota dealership. This new facility adds 20 additional service bays to the original eight at the Minnesota location, and commenced operations late in the second quarter.
  • Revenues for the second quarter were $168.5 million; up $6.4 million, or 4.0%, versus 2018. Revenue from sales of recreational vehicles was $149.0 million for the quarter, up $4.6 million, or 3.2%. RV unit sales excluding wholesale units, were 2,092 for the quarter, down 17 units, or 0.8% versus 2018. The marginal decline in unit volume was offset by a 3.5% increase in our average selling price per unit. Other revenues which includes finance and insurance ("F&I") revenues as well as other revenues including parts, accessories, and related services were up $1.7 million. This increase is attributable to higher F&I revenue per vehicle sold, as well as our Tennessee and Minnesota locations acquired in the second half of 2018.
  • Gross profit, which excludes depreciation and amortization, was $35.5 million, down $0.2 million versus 2018. Gross margin declined slightly between the two periods, from 22.0% in 2018 to 21.0% in 2019, primarily driven by a mix shift towards new versus pre-owned unit sales.
  • Excluding transaction costs, depreciation and amortization, and the amortization of stock-based compensation; selling, general and administrative expense ("SG&A") for the quarter was $25.2 million, up $0.3 million compared to the prior year related to expenses from our Tennessee and Minnesota dealerships acquired in 2018. Expense related to the amortization of stock-based compensation decreased by $1.5 million compared to the prior year, while depreciation and amortization remained relatively flat compared to the prior year. Stock-based compensation decreased as a result of the graded vesting schedule of the market-based awards issued to management in March of 2018.
  • Adjusted EBITDA, a non-GAAP financial measure, was $9.9 million for the quarter, down slightly compared to $10.0 million in 2018. This was primarily driven by decreased gross profit from the decline in preowned vehicle unit sales.
  • As of June 30, 2019, cash was $30.2 million, up $3.6 million from December 31, 2018. The increase was primarily the result of cash flows from operating activities net of Floorplan financing payoffs as we reduced our RV inventory by approximately $47.0 million since December 31, 2018.

"Despite industry conditions that were consistent with the first quarter of 2019, we continued to maintain margins and actively manage our inventory levels in alignment with overall demand," stated Mr. William Murnane, Chairman and Chief Executive Officer of Lazydays. "We are also pleased with our continued service and geographic expansion progress. During the second quarter, we completed the construction and commenced operations of our state-of-the-art service facility – greatly expanding service capacity at our Minnesota dealership. Our acquisition of Alliance Coach adds a dealership with a strong service reputation and expands our footprint in a fast-growing area of Florida. The Alliance acquisition moved from a letter of intent, through due diligence, integration, and close in less than 60 days – demonstrating our capability to successfully execute our expansion strategy and our team's ability to quickly integrate acquired dealerships."   

Conference Call Information:

The Company has scheduled a conference call at 10:00AM Eastern Time on August 13, 2019 that will also be broadcast live over the internet. The call can be accessed as follows:

Via phone by dialing 1-844-343-9114 for domestic callers and 1-647-689-5132 for international callers. Please dial in and request Lazydays Holdings, Inc. Second Quarter 2019 Financial Results Conference Call; also via webcast by clicking the link

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 20, 2019 and may be accessed by calling 1-800-585-8367 or 1-416-621-4642 with a conference ID number of 2395566. The webcast will be archived in the Investor Relations section of the Company's website.

ABOUT LAZYDAYS RV

Lazydays, The RV Authority®, is an iconic brand in the RV industry. Home of the world's largest recreational dealership, based on 126 acres outside of Tampa, Florida, Lazydays also has dealerships located in Ocala, Florida; Tucson, Arizona; Minneapolis, Minnesota; Knoxville, Tennessee; and Loveland and Denver, Colorado. Offering the nation's largest selection of leading RV brands, Lazydays features nearly 3,000 new and pre-owned RVs, more than 400 service bays and two on-site campgrounds with over 700 RV campsites. Lazydays RV Accessories & More™ stores offer thousands of accessories and hard-to-find parts at dealership locations.  In addition, Lazydays also has rental fleets in Colorado.

Since 1976, Lazydays has built a reputation for providing an outstanding customer experience with exceptional service and product expertise, along with being a preferred place to rest and recharge with other RVers. Lazydays consistently provides the best RV purchase, service, rental and ownership experience, which is why more than a half-million RVers and their families visit Lazydays every year, making it their "home away from home."

Lazydays Holdings, Inc. is a publicly listed company on the Nasdaq stock exchange under the ticker "LAZY." Additional information can be found here.

Forward‐Looking Statements

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 its Minnesota, Tennessee, and Ocala dealerships as well as its service business, 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 economic conditions generally, conditions in the credit markets and changes in interest rates, conditions in the capital markets, and other factors described from time to time in Lazydays' Securities and Exchange Commission reports and filings, which are available at www.sec.gov. 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.

Note on Presentation

For the three months ended June 30, 2019 and June 30, 2018, the financial information presented represents the operating results of Lazydays Holdings, Inc. (labeled as "Successor" in the accompanying tables). For the six months ended June 30, 2019, the financial information presented represents the operating results of Lazydays Holdings, Inc. For the six months ended June 30, 2018, the financial information presented represents the combined operating results of Lazydays Holdings, Inc. for the period from March 15, 2018 to June 30, 2018 with the operating results of Lazy Days' R.V. Center, Inc. (labeled as "Predecessor" in the accompanying tables) for the period from January 1, 2018 to March 14, 2018.

Results of Operations for the Three and Six Months Ended June 30, 2019 and 2018

LAZYDAYS HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollar amounts in thousands)

(Unaudited)
















Successor


Successor


Successor


Combined

Successor and

Predecessor





Three Months Ended June 30, 2019


Three Months Ended June 30, 2018


Six Months Ended June 30, 2019


Six Months

Ended June

30, 2018















Revenues











    New and pre-owned vehicles



$          149,046


$         144,361


$          301,680


$         302,639

    Other




19,500


17,753


39,923


37,319


Total revenue



168,546


162,114


341,603


339,958












Cost of revenues (excluding depreciation and amortization expense)










    New and pre-owned vehicles



128,017


122,329


258,887


257,694

    Adjustments to LIFO reserve



359


-


606


148

    Other




4,692


4,039


9,685


7,624


Total cost of revenues (excluding depreciation and amortization)



133,068


126,368


269,178


265,466












Gross profit (excluding depreciation and amortization)



35,478


35,746


72,425


74,492












Transaction costs



87


252


315


3,496

Depreciation and amortization expense



2,640


2,691


5,335


4,304

Stock-based compensation expense



1,112


2,644


2,626


3,269

Selling, general, and administrative expenses



25,151


24,918


51,603


51,285


Income from operations



6,488


5,241


12,546


12,138

Other income/expenses










(Loss)/gain on sale of property and equipment



-


10


(2)


11

Interest expense



(2,531)


(2,233)


(5,558)


(4,937)


Total other expense



(2,531)


(2,223)


(5,560)


(4,926)

Income before income tax expense



3,957


3,018


6,986


7,212


Income tax expense



(2,099)


(1,176)


(3,284)


(2,343)


Net income



$              1,858


$             1,842


$              3,702


$             4,869












 

Balance Sheets as of June 30, 2019 and December 31, 2018

LAZYDAYS HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollar amounts in thousands except for share and per share data)














As of 


As of







June 30,


December 31, 







2019


2018







(Unaudited)



ASSETS









Current assets









Cash






$            30,152


$           26,603

Receivables, net of allowance for doubtful accounts of $645 and  $687 
    at June 30, 2019 and December 31, 2018, respectively




20,104


16,967

Inventories






118,547


167,378

Income tax receivable





231


2,630

Prepaid expenses and other




3,256


3,166



Total current assets



172,290


216,744










Property and equipment, net





80,294


78,043

Goodwill






36,728


36,762

Intangible assets, net





68,286


70,189

Other assets






255


358



Total assets



$          357,853


$         402,096





















LAZYDAYS HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS, CONTINUED

(Dollar amounts in thousands except for share and per share data)

























As of 


As of







June 30,


December 31, 







2019


2018







(Unaudited)



LIABILITIES AND STOCKHOLDERS' EQUITY






Current liabilities









Accounts payable, accrued expenses and other current liabilities

$            21,517


$           22,599

Dividends payable





-


1,210

Floor plan notes payable, net of debt discount



94,738


143,469

Financing liability, current portion




830


714

Long-term debt, current portion




4,445


4,408



Total current liabilities



121,530


172,400










Long term liabilities








Financing liability, non-current portion, net of debt discount


63,555


60,533

Long term debt, non-current portion, net of debt discount


16,790


19,013

Deferred tax liability





18,717


18,717



Total liabilities



220,592


270,663










Commitments and Contingencies
















Series A Convertible Preferred Stock; 600,000 shares, designated,


57,692


54,983

issued, and outstanding as of June 30, 2019 and December 31, 2018; 




liquidation preference of $62,709 and $61,210 as of June 30, 2019 




and December 31, 2018, respectively
















Stockholders' Equity

















Preferred Stock, $0.0001 par value; 5,000,000 shares authorized;


-


-

Common stock, $0.0001par value; 100,000,000 shares authorized;





8,471,608 shares issued and outstanding at June 30, 2019 





and December 31, 2018, respectively




-


-

Additional paid-in capital





80,023


80,606

Accumulated deficit





(454)


(4,156)





















Total stockholders' equity


79,569


76,450



Total liabilities and stockholders' equity

$          357,853


$         402,096










 

Non-GAAP Financial Measures

We use certain non-GAAP financial measures, such as EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin to enable us to analyze our performance and financial condition. We utilize these financial measures to manage our business on a day-to-day basis and believe that they are useful measures of performance as they reflect certain operating drivers of the business, such as sales growth, operating costs, selling and administrative expense and other operating income and expense. We believe that these supplemental measures are commonly used by analysts, investors and other interested parties to evaluate companies in our industry. We believe these non-GAAP measures provide expanded insight of the underlying operating results and trends and overall understanding of our financial performance and prospects for the future. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

Our use of EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin may not be comparable to other companies within the industry due to different methods of calculation. We compensate for these limitations by using each of EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin as only one of several measures for evaluating our business performance. In addition, capital expenditures, which impact depreciation and amortization, interest expense, and income tax expense, are reviewed separately by management. We may incur expenses in the future that are the same or similar to some of those adjusted in this presentation.

EBITDA is defined as net income excluding depreciation and amortization of property and equipment, interest expense, net, amortization of intangible assets, and income tax expense.

Adjusted EBITDA is defined as net income excluding depreciation and amortization of property and equipment, non-floor plan interest expense, amortization of intangible assets, income tax expense, stock-based compensation, transaction costs and other supplemental adjustments which for the periods presented includes LIFO adjustments, severance costs and other one-time charges, and loss or gain on sale of property and equipment.

Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of total revenues.

Reconciliations from Net Income per the Consolidated Statements of Income to EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin for the three and six months ended June 30, 2019 and 2018 are shown (in thousands) in the tables below. 










Successor

Successor


Successor

Combined Successor and Predecessor



Three Months Ended June 30, 


Six Months Ended June 30, 



2019

2018


2019

2018








EBITDA and Adjusted EBITDA







Net  income


$                   1,858

$                    1,842


$                             3,702

$                                  4,869

Interest expense, net


2,531

2,233


5,558

4,937

Depreciation and amortization of property and equipment


1,687

1,897


3,428

3,224

Amortization of intangible assets


953

794


1,907

1,080

Income tax expense


2,099

1,176


3,284

2,343

Subtotal EBITDA


9,128

7,942


17,879

16,453

Floor plan interest


(1,049)

(953)


(2,518)

(1,984)

LIFO adjustment 


359

-


606

148

Transaction costs


87

252


315

3,496

Loss (gain) on sale of property and equipment


-

(10)


2

(11)

Severance costs/Other


272

79


429

79

Stock-based compensation


1,112

2,644


2,626

3,269

Adjusted EBITDA 


$                   9,909

$                    9,954


$                           19,339

$                                21,450































Successor

Successor


Successor

Combined Successor and Predecessor



Three Months Ended June 30, 


Six Months Ended June 30, 



2019

2018


2019

2018








EBITDA margin and Adjusted EBITDA margin







Net income margin


1.1%

1.1%


1.1%

1.4%

Interest expense, net


1.5%

1.4%


1.6%

1.5%

Depreciation and amortization of property and equipment


1.0%

1.2%


1.0%

0.9%

Amortization of intangible assets


0.6%

0.5%


0.6%

0.3%

Income tax expense


1.2%

0.7%


1.0%

0.7%

Subtotal EBITDA margin


5.4%

4.9%


5.2%

4.8%

Floor plan interest


-0.6%

-0.6%


-0.7%

-0.6%

LIFO adjustment 


0.2%

0.0%


0.2%

0.0%

Transaction costs


0.1%

0.2%


0.1%

1.0%

Loss (gain) on sale of property and equipment


0.0%

0.0%


0.0%

0.0%

Severance costs/Other


0.2%

0.0%


0.1%

0.0%

Stock-based compensation


0.7%

1.6%


0.8%

1.0%

Adjusted EBITDA margin


5.9%

6.1%


5.7%

6.3%








Note: Figures in the table may not recalculate exactly due to rounding.

 

News Contact:
+1 (813) 204-4099
investors@lazydays.com 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/lazydays-holdings-inc-reports-second-quarter-2019-financial-results-300900333.html

SOURCE Lazydays Holdings, Inc.



More Trending News & Market Analysis