In This Article:
Release Date: March 31, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Lazydays Holdings Inc (NASDAQ:GORV) completed a comprehensive recapitalization, enhancing their capital structure and reducing debt.
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The company successfully sold five dealerships to Camping World, retaining a $10 million nonrefundable deposit for two locations not closed by the buyer.
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Lazydays Holdings Inc (NASDAQ:GORV) signed a letter of intent with General RV Center to divest three locations, potentially adding meaningful cash to their balance sheet.
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The company saw improved gross profit per unit sold, reflecting the benefits of inventory actions taken throughout 2024.
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Finance penetration remained strong at approximately 73%, with FNI revenue per unit up 3% relative to the third quarter of 2024.
Negative Points
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New unit sales declined by 7% in the fourth quarter, with pre-owned retail unit sales down 23%.
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Net sales for the quarter decreased by $38 million or 19%, reflecting planned lower volumes.
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Total gross margin decreased to 19% in the fourth quarter compared to 21% in the third quarter of 2024.
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SGNA expenses increased to $53 million due to higher transaction and legal expenses related to restructuring.
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The company reported an adjusted EBITDA loss of $24 million, compared to a loss of $11 million in the prior year period.
Q & A Highlights
Q: Can you elaborate on the strategic transactions completed in the fourth quarter of 2024? A: Ron Fleming, Interim CEO, explained that Lazydays completed a comprehensive recapitalization, including a $30 million common equity PIPE from two investors and the exchange of all outstanding convertible preferred stock for common stock. They also amended their credit facility with M&T Bank. These actions added cash to the balance sheet, enhanced the capital structure, and reduced debt, providing financial flexibility.
Q: What steps have been taken to right-size the dealership portfolio? A: Ron Fleming noted that Lazydays sold one dealership asset for $8 million and agreed to sell seven additional dealerships to Camping World for $65.5 million. Five dealerships were sold, while the buyer chose not to close on two locations. Lazydays retained a $10 million deposit and exercised remedies for the buyer's refusal to close, avoiding stockholder dilution.
Q: How is Lazydays addressing inventory management and consumer demand? A: Amber Dillard, COO, stated that Lazydays focused on maintaining a healthy inventory position and increased procurement of used units directly from consumers. The new inventory consists of 75% model year 2025 units, with a significant portion being towable products, reflecting consumer demand for affordable options.