Lazydays reported first-quarter revenue totaled $173.1 million, down $4.7 million, or 2.7%, from the prior year period.
Revenue from sales of recreational vehicles was $152.6 million for the quarter, down $5.7 million, or 3.6%. RV unit sales excluding wholesale units, were 1,974 for the quarter, down 80 units, or 3.9% versus 2018. The decline in the sale of recreational vehicles for the quarter was partially offset by a $0.8 million increase in finance and insurance (“F&I”) revenues, as well as other revenues including parts, accessories, and related services.
Gross profit, which excludes depreciation and amortization, was $36.9 million, down $2.0 million versus 2018. Gross margin declined slightly between the two periods, from 21.9% in 2018 to 21.3% in 2019, primarily driven by a mix shift towards new versus pre-owned unit sales.
Excluding transaction costs, stock-based compensation, and depreciation and amortization, selling, general and administrative expense (“SG&A”) for the quarter was $26.5 million, down $0.1 million compared to the prior year. Stock-based compensation and depreciation and amortization increased $0.9 million and $1.1 million, respectively, compared to the prior year.
These non-cash expense increases stemmed from the March 15, 2018 merger between Andina Acquisition Corp. II and Lazy Days’ R.V. Center Inc., which included options issued to management and increases in tangible and intangible asset valuations. In addition, transaction costs decreased by approximately $3.0 million compared to the prior year as a result of the fees incurred in 2018 associated with the merger better Andina and Lazydays R.V. Center, Inc.
Adjusted EBITDA, a non-GAAP financial measure, was $9.4 million for the quarter, down $2.1 million, compared to 2018. This was primarily driven by decreased gross profit from the decline in preowned vehicle unit sales. The company experienced severe weather in a number of its markets during the quarter and believes the weather negatively impacted unit volume in the quarter.
“Despite the continued difficult industry conditions in the first quarter along with severe weather in our Minnesota, Tennessee and Colorado markets, we are generally pleased with our performance,” stated William Murnane, chairman and CEO of Lazydays. “Notwithstanding weaker demand and lower volume, we were able to maintain our margins. Moreover, we reduced our same store RV inventory to slightly below March 2018 levels and believe our inventory is well positioned and properly balanced. We are also very pleased with our strong cash flow in the quarter.”
For the full report click here.