Lazydays Holdings Inc. reported that revenues for the second quarter, ended June 30, totaled $168.5 million, up $6.4 million, or 4%, versus the prior-year period.
Revenue from sales of recreational vehicles was $149 million for the quarter, up $4.6 million, or 3.2%. RV unit sales excluding wholesale units, were 2,092, down 17 units, or 0.8% versus 2018.
According to a release, “the marginal decline in unit volume was offset by a 3.5% increase in the average selling price per unit.” Other revenues which includes finance and insurance (F&I) revenues as well as other sales including parts, accessories, and related services were up $1.7 million. This increase is attributable to higher F&I revenue per vehicle sold, as well as the dealer’s Tennessee and Minnesota locations acquired in the second half of 2018.”
Other highlights showed:
- On June 11 Lazydays announced entering into a letter of intent to acquire the assets of Alliance Coach Inc. (“Alliance”) located near Ocala, Florida. The acquisition closed on Aug. 1..
- Lazydays completed the construction of a 30,000 square-foot state-of-the-art recreational vehicle service facility adjacent to its Minnesota dealership. This new facility adds 20 additional service bays to the original eight at the Minnesota location, and commenced operations late in the second quarter.
- Gross profit, which excludes depreciation and amortization, was $35.5 million, down $0.2 million versus 2018. Gross margin declined slightly between the two periods, from 22% in 2018 to 21% in 2019, primarily driven by a mix shift towards new versus pre-owned unit sales.
- Excluding transaction costs, depreciation and amortization, and the amortization of stock-based compensation; selling, general and administrative expense for the quarter was $25.2 million, up $0.3 million compared to the prior year related to expenses from its Tennessee and Minnesota dealerships acquired in 2018. Expense related to the amortization of stock-based compensation decreased by $1.5 million compared to the prior year, while depreciation and amortization remained relatively flat compared to the prior year. Stock-based compensation decreased as a result of the graded vesting schedule of the market-based awards issued to management in March of 2018.
- Adjusted EBITDA, a non-GAAP financial measure, was $9.9 million for the quarter, down slightly compared to $10.0 million in 2018. This was primarily driven by decreased gross profit from the decline in preowned vehicle unit sales.
- As of June 30, cash was $30.2 million, up $3.6 million from December 31, 2018. The increase was primarily the result of cash flows from operating activities net of floorplan financing payoffs as the company reduced RV inventory by approximately $47.0 million since Dec. 31, 2018.
“Despite industry conditions that were consistent with the first quarter of 2019, we continued to maintain margins and actively manage our inventory levels in alignment with overall demand,” stated Chairman and Chief Executive Officer William Murnane of Lazydays. “We are also pleased with our continued service and geographic expansion progress. During the second quarter, we completed the construction and commenced operations of our state-of-the-art service facility – greatly expanding service capacity at our Minnesota dealership. Our acquisition of Alliance Coach adds a dealership with a strong service reputation and expands our footprint in a fast-growing area of Florida. The Alliance acquisition moved from a letter of intent, through due diligence, integration, and close in less than 60 days – demonstrating our capability to successfully execute our expansion strategy and our team’s ability to quickly integrate acquired dealerships.”