Lazydays reported that third-quarter 2023 revenue decreased 15.9 percent to $280.7 million from $333.8 million in the third quarter of 2022.

  • New vehicle retail sales were down 15.0 percent to $172.9 million, and
  • Pre-owned vehicle retail sales were down 17.3 percent to $75.1 million.

The chain of RV dealerships posted a net loss of $5.6 million in Q3, compared to net income of $7.7 million for the corresponding period in 2022. The third quarter adjusted net loss was $2.9 million this year, compared to net income of $14.4 million for Q3 2022. 

Third quarter 2023 net loss per diluted share was 48 cents a share compared to a net income per diluted share of 35 cents for the same period in 2022. Adjusted third quarter 2023 net loss per diluted share was 29 cents compared to net income per diluted share of 54 cents for the corresponding period 2022.

The third quarter of 2023 adjusted results exclude a net non-core charge of 19 cents per diluted share related to a LIFO adjustment, acquisition expenses, severance and transition costs. The third quarter of 2022 adjusted results exclude a net non-core charge of 19 cents a share related to the effects of changes in the fair value of warrant liabilities, the LIFO adjustment and severance and transition costs.

The nine-month year-to-date net loss was $2.3 million, pr 49 cents a share, compared to net income of $67.8 million, or $2.30 a share, for the corresponding period in 2022.

Real Estate Operations
Lazydays acquired Buddy Gregg Motorhomes in Knoxville, TN, during the quarter and Century RV in Longmont, CO. The company also opened a Wilmington, OH, greenfield location. LAZY estimates these stores will add $125 million in revenues “at a steady state.”

In July, the company closed its Maryville, TN, location due to the expansion of the Alcoa Highway by the Tennessee DOT. In September, Lazydays closed its Burns Harbor, IN location and consolidated operations into its nearby Elkhart, IN location.

Earlier this week, Lazydays announced it opened a Fort Pierce, FL, greenfield location, and the company said it remains on track to open its Surprise, AZ, greenfield location in the fourth quarter.

Balance Sheet
Lazydays ended the third quarter with a total estimated liquidity of $67.8 million, including cash of $32.9 million, $4.6 million of availability on a revolving credit facility and $30.2 million in available from an undrawn floor plan capacity and floor plan offset account. The company also holds approximately $95.5 million of unfinanced real estate that it estimates could provide $80.6 million of additional liquidity.

On September 12, 2023, the company filed a registration statement on Form S-1, as amended, with the Securities and Exchange Commission for Rights Offering. The Rights Offering was made effective by the SEC on October 23, 2023, and the subscription period will expire on November 14, 2023. 

Assuming the Rights Offering is fully subscribed, the company estimated the total purchase price of the shares offered in the Rights Offering, representing the aggregate net proceeds received by the company, to be approximately $99.6 million. The company expects the net proceeds of the offering to be used for growth initiatives, including acquisitions and new business development activities and general corporate purposes, which may include repaying or refinancing some or all of its existing or future debt facilities.

Photo courtesy Lazydays