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Lazydays Holdings, Inc. Reports Record Second Quarter 2021 Financial Results

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TAMPA, Fla., Aug. 5, 2021 /PRNewswire/ -- Lazydays Holdings, Inc. ("Lazydays" or the "Company") (NasdaqCM: LAZY) announced financial results for the second quarter ended June 30, 2021. Net Income for the quarter was $25.3 million, up $20.0 million compared to second quarter 2020. Second quarter revenue of $322.8 million, and EBITDA of $41.3 million, were all-time quarterly records.

(PRNewsfoto/Lazydays)
(PRNewsfoto/Lazydays)

Second Quarter Financial Results and Highlights:

  • Revenues for the second quarter were $322.8 million; up $108.8 million, or 51%, versus 2020. Revenue from sales of Recreational Vehicles ("RVs") was $290.2 million for the second quarter, up $98.7 million, or 52%, versus 2020. RV unit sales excluding wholesale units, were 4,208 for the quarter, up 1,258 units, or 43% versus 2020. New and preowned RV sales revenues were $201.6 million and $88.7 million for the quarter, up 55.8% and 42.7% respectively compared to 2020.

  • Gross profit, excluding last-in-first-out ("LIFO") adjustments, was $86.4 million, up $42.7 million, or 98%, versus 2020. Gross margin excluding LIFO adjustments increased between the two periods, to 26.8% in 2021 from 20.4% in 2020. This margin increase was driven by increased RV sales margins in a market with strong consumer demand and constrained inventory. Gross profit for the quarter including LIFO adjustments was $86.2 million; up $42.3 million, or 96%, versus 2020. This gross profit comparison reflects a $0.4 million net increase in LIFO adjustments between the two periods.

  • Excluding transaction costs, stock-based compensation, and depreciation and amortization, Selling, General and Administrative expense ("SG&A") for the second quarter was $44.8 million, up $16.5 million compared to the prior year. The increase in SG&A expenses was related to overhead associated with the Phoenix dealership acquired in May 2020, the Elkhart dealership acquired in October 2020, the Burns Harbor dealership acquired in December 2020 and the Louisville, Tennessee dealership acquired in March 2021. In addition, performance wages increased across the business as a result of the increased RV sales and margins for the quarter. Depreciation and amortization increased $0.7 million, and transaction costs increased $0.4 million compared to the prior year.

  • Adjusted EBITDA, a non-GAAP financial measure, was $41.3 million for the second quarter, up $26.4 million compared to 2020. EBITDA as a percentage of revenue improved to 12.8% from 7.0%.

  • As of June 30, 2021, cash was $104.3 million up $40.8 million from December 31, 2020. The increase includes the impact of cash provided by operating activities of $83.7 million offset by cash paid for purchases of property and equipment and acquisitions of $13.3 million and cash used in financing activities of $29.6 million.

  • The reported second quarter $25.3 million net income includes a one-time $6.1 million benefit for PPP loan forgiveness, offset by a $6.8 million non-cash expense recognizing a change in the fair value of warrant liabilities.

Conference Call Information:

The Company has scheduled a conference call at 10:00 AM Eastern Time on August 5, 2021 that will also be broadcast live over the internet. The call can be accessed as follows:

Via online registration at: http://www.directeventreg.com/registration/event/8444906 or 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 12, 2021 and may be accessed by calling 1-800-585-8367 or 1-416-621-4642 with a conference ID number of 8444906. The webcast will be archived in the Investor Relations section of the Company's website.

ABOUT LAZYDAYS RV
As an iconic brand in the RV industry, Lazydays, The RV Authority, consistently provides the best RV sales, service, and ownership experience, which is why RVers and their families become Customers for Life. Lazydays continues to add locations at a rapid pace as it executes its geographic expansion strategy that includes both acquisitions and greenfields.

Since 1976, Lazydays RV has built a reputation for providing an outstanding customer experience with exceptional service excellence and unparalleled product expertise, along with being a preferred place to rest and recharge with other RVers. By offering the largest selection of RV brands from the nation's leading manufacturers, state-of-the-art service facilities, and thousands of accessories and hard-to-find parts, Lazydays RV provides everything RVers need and want.

Lazydays Holdings, Inc. is a publicly listed company on the Nasdaq stock exchange under the ticker "LAZY."

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 future operating results, its expectations regarding the impact of its acquisition of its recently acquired dealership in Phoenix, Arizona, Elkhart, Indiana, Burns Harbor, Indiana, and Louisville, Tennessee and its greenfield start-ups near Houston, Texas and Nashville, Tennessee, 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, the continuing impact of the pandemic outbreak of coronavirus (COVID-19) and other factors described from time to time in Lazydays' SEC 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.

Results of Operations for the Second Quarter Ended June 30, 2021 and 2020




For the Three Months Ended




June 30, 2021



June 30, 2020







(Restated)

Revenues







New and pre-owned vehicles


$ 290,213



$ 191,505

Other



32,578



22,456


Total revenues


322,791



213,961








Cost applicable to revenues (excluding depreciation and amortization shown below)






New and pre-owned vehicles (including adjustments to the






LIFO reserve of $177 and ($240), respectively)


229,575



164,377

Other



7,002



5,631


Total cost applicable to revenue


236,577



170,008








Transaction costs


475



45

Depreciation and amortization


3,334



2,671

Stock-based compensation


311



340

Selling, general, and administrative expenses


44,792



28,275


Income from operations


37,302



12,622

Other income/expenses






PPP loan forgiveness


6,148



-

Interest expense


(1,861)



(2,018)

Change in fair value of warrant liabilities


(6,784)



(2,758)

Inducement Loss on Warrant Conversion


-



-


Total other expense


(2,497)



(4,776)

Income before income tax expense


34,805



7,846


Income tax expense


(9,496)



(2,536)


Net income


$ 25,309



$ 5,310


Dividends on Series A Convertible Preferred Stock


(1,197)



(1,684)


Net income attributable to common stock and participating securities


$ 24,112



$ 3,626















EPS:







Basic



$ 1.69



$ 0.25

Diluted



$ 1.21



$ 0.25

Weighted average shares outstanding:






Basic



10,977,852



9,715,677

Diluted



20,915,421



9,715,677








See the accompanying notes to the unaudited condensed consolidated financial statements

Balance Sheets as of June 30, 2021 and December 31, 2020


As of


As of


June 30, 2021


December 31, 2020


(Unaudited)


(Restated)





ASSETS




Current assets




Cash

$ 104,328


$ 63,512

Receivables, net of allowance for doubtful accounts of $659
at June 30, 2021 and December 31, 2020

38,233


19,464

Inventories

87,256


116,267

Income tax receivable

-


1,898

Prepaid expenses and other

4,115


2,740



Total current assets

233,932


203,881







Property and equipment, net

111,925


106,320

Operating lease assets

14,425


15,472

Goodwill

47,919


45,095

Intangible assets, net

71,388


72,757

Other assets

497


473



Total assets

$ 480,086


$ 443,998







See the accompanying notes to the unaudited condensed consolidated financial statements














As of


As of


June 30, 2021


December 31, 2020


(Unaudited)


(Restated)





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities




Accounts payable, accrued expenses and other current liabilities

$ 55,698


$ 38,781

Income taxes payable

5,084


-

Dividends payable

1,197


1,210

Floor plan notes payable, net of debt discount

63,913


105,399

Financing liability, current portion

2,098


1,462

Long-term debt, current portion

20,957


24,161

Operating lease liability, current portion

2,421


3,164



Total current liabilities

151,368


174,177







Long term liabilities




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

85,851


78,634

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

1,712


8,445

Operating lease liability, non-current portion

11,947


12,056

Deferred income tax liability

15,091


15,091

Warrant liabilities

17,652


15,096



Total liabilities

283,621


303,499





Commitments and Contingencies








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

54,983


54,983

issued, and outstanding as of June 30, 2021 and December 31, 2020;




liquidation preference of $60,000 as of June 30, 2021




and December 31, 2020, respectively








Stockholders' Equity








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

-


-

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




10,854,477 and 9,656,041 shares issued and 10,713,178 and 9,514,742




outstanding at June 30, 2021 and December 31, 2020, respectively

-


-

Additional paid-in capital

93,039


71,226

Treasury Stock, at cost, 141,299shares at June 30, 2021 and December 31, 2020, respectively

(499)


(499)

Retained earnings

48,942


14,789



Total stockholders' equity

141,482


85,516



Total liabilities and stockholders' equity

$ 480,086


$ 443,998

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, impairment of rental units and gain (loss) 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 months ended June 30, 2021 and 2020 are shown in the tables below.




Three Months Ended June 30,




2021


2020 (Restated)







EBITDA






Net income



$ 25,309


$ 5,310

Interest expense, net*



1,861


2,018

Depreciation and amortization of property and equipment

2,025


1,624

Amortization of intangible assets



1,309


1,047

Income tax expense



9,496


2,536

Subtotal EBITDA



40,000


12,535

Floor plan interest



(326)


(565)

LIFO adjustment



177


(239)

Transaction costs



475


45

PPP loan forgivenesss



(6,148)


-

Loss on sale of property and equipment



-


6

Change in fair value of warrant liabilties



6,784


2,758

Inducement loss on warrant conversion



-


-

Stock-based compensation



311


340

Adjusted EBITDA



$ 41,273


$ 14,880







* Interest expense includes $1,206 and $1,178 relating to finance lease payments for the three months ended June 30, 2021 and 2020, respectively. Depreciation on leased assets under finance leases is included in depreciation expense and included in net income. Operating lease payments are included as rent expense and included in net income.
















Three Months Ended June 30,




2021


2020 (Restated)







EBITDA margin






Net income margin



7.8%


2.5%

Interest expense, net



0.6%


0.9%

Depreciation and amortization of property and equipment

0.6%


0.8%

Amortization of intangible assets



0.4%


0.5%

Income tax expense



2.9%


1.2%

Subtotal EBITDA margin



12.4%


5.9%

Floor plan interest



-0.1%


-0.3%

LIFO adjustment



0.1%


-0.1%

Transaction costs



0.1%


0.0%

PPP loan forgivenesss



-1.9%


0.0%

Loss on sale of property and equipment



0.0%


0.0%

Change in fair value of warrant liabilties



2.1%


1.3%

Inducement loss on warrant conversion



0.0%


0.0%

Stock-based compensation



0.1%


0.2%

Adjusted EBITDA



12.8%


7.0%







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

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

Cision
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SOURCE Lazydays Holdings, Inc.