Lazydays Holdings, Inc (LAZY) Reports Q4 Revenues of $126.52M

Lazydays Holdings, Inc (NASDAQ: LAZY) reported Q4 revenue for the quarter came in at $126.52 million versus the consensus estimate of $132.7 million.

Fourth Quarter Financial Results and Highlights:

• Revenues for the fourth quarter were $144.9 million; up $19.1 million, or 15.1%, versus 2018. Revenue from sales of recreational vehicles ("RVs") was $126.5 million for the fourth quarter, up $16.4 million, or 14.9%, versus 2018. RV unit sales excluding wholesale units, were 1,585 for the fourth quarter, up 251 units, or 18.8% versus 2018. New and preowned unit sales were $74.4 million and $52.1 million for the quarter, up 12.6% and 18.2% respectively compared to 2018.
• Gross profit, excluding last-in-first-out ("LIFO") adjustments, was $30.1 million, up $2.8 million versus 2018. Gross margin excluding LIFO adjustments declined between the two periods, from 21.7% in 2018 to 20.8% in 2019. This margin decline was driven by competitive end of model year pricing reducing RV sales gross margins, as well as an increase in wholesale sales as a percentage of the sales mix. The Company believes that the pressure on margins was driven by competitors in the industry carrying aged, out of model year inventory aggressively pricing units to meet cash flow needs. Gross profit for the quarter including LIFO adjustments was $29.2 million; up $2.3 million, or 8.6%, versus 2018. This gross profit comparison was reduced $0.5 million reflecting a net difference 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 fourth quarter was $26.3 million, up $4.6 million compared to the prior year. This increase is attributable to the additional overhead expenses contributed by the recently acquired location at The Villages, as well as a full quarter of overhead associated with the Tennessee location acquired in December 2018. The prior year comparable is also unfavorable because of an approximately $1.2 million net favorable impact in the fourth quarter of 2018 related to accruals for employee benefits and incentive compensation, and bad debt reserves. In addition, SG&A was impacted by a $0.4 million adjustment for impairment of rental units, as well as increased performance and incentive compensation and other personnel costs. Stock-based compensation decreased $1.7 million, and depreciation and amortization increased $0.2 million compared to the prior year.
• Adjusted EBITDA, a non-GAAP financial measure, was $3.3 million for the fourth quarter, down $1.3 million compared to 2018. This was primarily driven by the decline in gross margins related to competitive pricing in the fourth quarter of 2019. EBITDA for the quarter would have remained about flat excluding the Q4 2018 $1.2 million favorable impact related to accruals for employee benefits and incentive compensation and bad debt reserves.
• As of December 31, 2019, cash was $31.5 million, down $2.0 million from September 30, 2019. The decrease in cash includes the impact of cash used to invest in growth initiatives including more than $9 million of fourth quarter 2019 funding toward greenfield start-ups near Houston, Texas and Nashville, Tennessee.

For earnings history and earnings-related data on Lazydays Holdings, Inc (LAZY) click here.

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