Lazydays Holdings Inc (GORV) Q3 2024 Earnings Call Highlights: Strategic Transformations Amid ...

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Release Date: November 19, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Lazydays Holdings Inc (NASDAQ:GORV) has embarked on a transformative journey to reshape its future, including changes to its capital structure and sales of certain assets.

  • The company agreed to sell seven dealerships and issue common stock for a combined $65.6 million, providing a strengthened financial foundation.

  • A $30 million common equity pipe was closed, providing immediate additional liquidity to support operations.

  • The company plans to launch a $25 million rights offering, allowing shareholders to purchase common stock at the same price as pipe investors.

  • The recapitalization transactions have removed the going concern status, reflecting improved financial stability.

Negative Points

  • Total revenue for the quarter decreased by 23.9%, indicating significant economic and demand headwinds.

  • New unit sales declined by 18.6%, with a gross profit per unit decrease of 26.1%.

  • The average selling price for new units declined by 13.1%, reflecting a shift towards lower-priced towable units.

  • Pre-owned retail unit sales were down 6.7%, with a gross profit per unit decrease of 23.6%.

  • The company faced operational disruptions due to Hurricanes Helene and Milton, resulting in an estimated loss of 10 sales days.

Q & A Highlights

Q: Can you provide an overview of the recent strategic transactions and their expected impact on Lazydays Holdings? A: Ron Fleming, Interim CEO, explained that Lazydays has embarked on a transformative journey to reshape the company for the future. This includes selling seven dealerships and issuing common stock to Camping World Holdings for $65.6 million, plus additional cash for inventory and service work. These actions aim to streamline operations and improve earnings power. Additionally, a $30 million equity pipe was closed, and a $25 million rights offering is planned, enhancing liquidity and capital structure. These steps are expected to strengthen Lazydays' financial foundation and position it for long-term growth.

Q: How did the recent hurricanes impact Lazydays' operations and financial performance? A: Jeff Huddleston, Interim CFO, noted that Hurricane Helene and Hurricane Milton significantly affected Lazydays' operations, particularly in Florida. The storms resulted in a loss of approximately 10 sales days, impacting revenue. Despite these challenges, the company did not suffer serious casualty losses, and the team effectively supported affected stores and communities.

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