Lazydays Holdings Inc. reported revenues for the third quarter of 2020 were $215.7 million, up $57.3 million, or 36.2 percent, versus 2019.
Revenue from sales of Recreational Vehicles was $194.6 million for the third quarter of 2020, up $55.7 million, or 40.1 percent, versus 2019. Unit sales excluding wholesale units, were 2,595 for the quarter, up 660 units, or 34.1 percent versus 2019. New and preowned RV sales revenues were $130.3 million and $64.2 million for the quarter, up 50.1 percent and 23.5 percent respectively compared to 2019.
Gross profit for the quarter was $49.3 million, up $18.8 million, or 61.5 percent, versus 2019. Gross profit, excluding last-in-first-out (LIFO) adjustments, was $47.9 million, up $16.5 million, or 52.3 percent, versus 2019. Gross margin excluding LIFO adjustments increased between the two periods, to 22.2 percent in 2020 from 19.9 percent in 2019, with the change attributable to improved RV sales margins and mix of business. This gross profit comparison reflects a $2.3 million net difference in LIFO adjustments between the two periods.
Selling, general and administrative expense (SG&A), which excludes transaction costs, stock-based compensation and depreciation and amortization, for the third quarter of 2020 was $28.6 million, up $3.0 million compared to the prior year. This increase is attributable to the additional overhead expenses associated with The Villages dealership acquired in August 2019, the service center near Houston that started up operations in mid-February 2020, the Phoenix dealership acquired in May 2020, and increased performance wages driven by the higher unit sales and revenue, partially offset by overhead cost reduction actions taken in April 2020.
Adjusted EBITDA, a non-GAAP financial measure, was $19.0 million for the third quarter of 2020, up $13.7 million compared to 2019. This is another record high quarterly adjusted EBITDA for Lazydays, beating the recently set previous record of $14.9 million in the second quarter of 2020.
Net income for the third quarter of 2020 was $11.6 million, or 55¢ per share, as compared to a net loss of $2.5 million, or 41¢ per share, in 2019. This $14.1 million net improvement was primarily the result of incremental profits driven by the growth in sales, the reduced amortization of stock-based compensation as well as a $0.6 million decrease in interest expense.
As of September 30, 2020, cash was $81.7 million, up $50.2 million from December 31, 2019.
Year-over-year demand and margins in October 2020 continued to be strong, and manufacturers are shipping product at levels that are slightly ahead of retail sales.
Lazydays has nine RV dealership locations in Arizona, Colorado, Florida, Indiana, Minnesota, and Tennessee.
Photo courtesy Lazydays