Lazydays Holdings Inc. reported a 4.6% increase in revenues for the first quarter, ended March 31.
Revenues totaled 177.8 million compared with $170 million during the same period a year ago. Sales of recreational vehicles increased by $7.5 million, or 4.9%. to $158.3 million, driven by strong customer demand for new recreational vehicles.
Net income for the quarter was $3 million compared with nearly $4 million a year ago while gross margins increased 9.2% to $38.9 million. Increases in margins were primarily driven by an 8.8% increase in the average retail selling price per unit driven by a favorable sales mix and customer demand.
On March 15, Lazy Days’ R.V. Center Inc. and Andina Acquisition Corp. II closed their business combination. In connection with the consummation of the business combination, the combined company was renamed Lazydays Holdings Inc. On March 16, the combined company’s common stock commenced trading on the Nasdaq Capital Market.
“We are pleased to be making our first earnings announcement following our merger with Andina Acquisition Corp. II. It was a transformative period for Lazydays as we became a publicly traded company listed on the Nasdaq Capital Market,” stated William Murnane, Chairman and CEO of Lazydays. “I’m very proud that our team was able to maintain its focus on business growth and operating improvements while we completed the merger.”
Other highlights included:
• Excluding transaction costs, selling, general, and administrative expenses increased by $1.8 million or 6.5%. This was primarily driven by increases in salaries and compensation costs which increased primarily as a result of increased margins. Selling, general, and administrative expenses excluding transactions costs were 74.0% and 75.8% of gross margins for the quarters ended March 31, 2018 and 2017, respectively. In addition, the company incurred approximately $3.2 million in transaction costs as a result of the merger with Andina for the quarter.
• Adjusted EBITDA, a non-GAAP financial measure, increased by 15.4% from $10.0 million for the quarter ended March 31, 2017 to $11.5 million for the quarter ended March 31, 2018 primarily driven by increases in gross margins described above.
• Cash increased to approximately $33.1 million, primarily as a result of the $94.8 million PIPE investment which took place in conjunction with the merger and approximately $11.2 million in incremental cash as a result of an increase in term loans. These financing cash inflows were offset by the $86.7 million purchase price payment in the merger between Lazy Days’ R.V. Center, Inc. and Andina Acquisition Corp. II.
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