Lazydays Holdings Inc. reported revenues during the company’s second quarter, ended June 30, decreased 1.6% to $162.1 million compared with $164.8 million for the year-ago quarter.
Revenue from sales of recreational vehicles edged down 1.6% to $144.4 million from $146.7 million a year ago, driven by decreased average selling price of new models due to the shift toward towable units as a greater portion of Lazyday’s sales mix.
Gross profit increased by $1.9 million, or 5.7%, to $35.7 million from $33.8 million a year ago. The increase in gross profit was primarily driven by a shift toward pre-owned vehicles sales and an increase in the volume of towables as a percentage of our new vehicle sales.
Excluding transaction costs, selling, general, and administrative expenses increased by $4.7 million or 18.1%, reflecting increases in non-cash expenses including depreciation and amortization of property and equipment and amortization of intangible assets associated with the acquisition date accounting as well as the stock-based compensation expense related to options issued to management following the merger between Andina Acquisition Corp. II and Lazy Days’ R.V. Center Inc. on March 15, 2018.
Adjusted EBITDA, a non-GAAP financial measure, increased by 2.5% from $9.7 million for the quarter ended June 30, 2017 to $10 million primarily due to the increase in gross profit described above.
Of note, Lazydays completed its acquisition of Shorewood RV Center in Anoka, Minn. The purchase agreement was announced in May 2018, and the deal closed on Tuesday (Aug. 7). This represents the company’s first acquisition since gong public.
“While we saw increases in volume during the second quarter, our top-line revenues were lower driven by a shift toward towables. Despite the lower sales revenue, we were able to improve gross profit based upon our increased unit sales and our sales mix having higher margins as a percent of revenue,” stated William Murnane, chairman and CEO of Lazydays. “We are excited to have completed our first acquisition as a public company. This is an important milestone for Lazydays as geographic expansion into top tier RV markets is a key element of our growth strategy.”
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