Lazydays RV reported a sharp decline in profits in the second quarter ended June 30 as sales in the period fell 17.4 percent, to $308.4 million from $373.6 million in the second quarter of 2022.
Second quarter 2023 net income was $3.6 million, or 12 cents a share, compared to $27.1 million, or 81 cents, for the same period in 2022, representing a decline of 86.7 percent. Second quarter 2023 adjusted net income, a non-GAAP measure, was $3.9 million, or 14 cents, compared to $23.5 million, or 87 cents, for the same period in 2022, representing a decline of 83.4 percent.
Net income for the first six months of 2023 was $3.3 million compared to $60.1 million for the same period in 2022. Adjusted net income for the first six months of 2023 was $5.1 million compared to $51.7 million for the same period in 2022. For the six months ended June 30 2023, net income per diluted share was $0.00 compared to $1.98 for the same period of 2022, and adjusted net income per diluted share was $0.13 compared to $2.12 for the same period in 2022.
Second quarter 2023 adjusted results exclude a net non-core charge of 2 cents per diluted share related to a LIFO adjustment, acquisition expenses and a storm reserve. The second quarter 2022 adjusted results exclude a net non-core charge of 6 cents a share related to the effects of changes in fair value of warrant liabilities, a LIFO adjustment and acquisition expenses. The adjusted year-to-date results for the six months ended June 30, 2023 exclude a net non-core charge of $0.08 related to the effects of changes in the fair value of warrant liabilities, a LIFO adjustment, acquisition expenses, transition costs, an impairment charge and a storm reserve. The adjusted year-to-date results for the same period in 2022 exclude a net non-core charge of $0.14 related to the effects of changes in the fair value of warrant liabilities, a LIFO adjustment, acquisition expenses and transition costs.
Corporate Development
Lazydays said earlier this month it acquired Buddy Gregg Motorhomes in Knoxville, TN. It estimates this store will add approximately $40 million in revenue at steady state and will more than offset the closure of its Maryville store due to the expansion of the Alcoa Highway by the Tennessee DOT.
In July, Lazydays’ Monticello, Minnesota store became exclusive to the Airstream brand and the location was renamed Airstream Minneapolis.
During the quarter Lazydays completed the purchase of a new 8-acre parcel in Las Vegas, NV and broke ground on a facility to relocate its existing store in that market.
Lazydays said it remains on track to open its Wilmington, OH and Ft. Pierce, FL greenfield locations in the third quarter and ITS Surprise, AZ greenfield location in the fourth quarter of this year.
Balance Sheet Update
Lazydays ended the second quarter with total estimated liquidity of $85.3 million including cash of $24.2 million, $4.6 million of availability on its revolving credit facility and $56.4 million in available floor plan capacity and its floor plan offset account. Additionally, Lazydays holds unfinanced real estate of $72.0 million that it estimates could provide liquidity of approximately $61 million.
In July, Lazydays completed mortgages on its Murfreesboro, Tennessee store and on its Knoxville property purchased with the Buddy Gregg acquisition. These mortgages generated net proceeds of $30.6 million.
