TAMPA, Fla. – Lazydays Holdings, Inc. (NasdaqCM: GORV) reported its financial results for the first quarter ended March 31, 2024, revealing a significant miss on earnings per share (EPS) and a slight miss on revenue compared to analyst estimates.
The recreational vehicle (RV) company posted an adjusted net loss of $1.63 per share, which is notably lower than the analyst expectation of a $0.13 loss per share. Revenue for the quarter was $270.6 million, falling short of the consensus estimate of $272.52 million.
The company experienced a substantial decrease in net income compared to the first quarter of the previous year, with a reported net loss of $22.0 million compared to a net loss of $0.3 million for the same period in 2023. This decline in performance is attributed to the company’s strategic focus on reducing the quantity and improving the health of vehicle inventory, as well as a failure to see an anticipated increase in unit volumes in March and April.
CEO John North acknowledged the larger than expected losses for the quarter and emphasized the company’s efforts to maintain a healthy inventory position as new model year units arrive. “Our expectation to see increasing unit volumes in March and April as we entered the summer selling season did not materialize as we had hoped,” said North. Despite the current challenges, North expressed confidence in the earnings power of the company’s store base and its potential for recovery.
When compared to the same quarter last year, the company’s total revenue decreased by 8.5%, from $295.7 million to $270.6 million. The decline in gross profit margin from 21.6% to 14.0% also reflects the difficulties faced by the company in the first quarter.
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In terms of guidance, the company anticipates a pre-tax loss for the full year but expects both positive EBITDA and adjusted operational cash flow. This outlook is set against a backdrop of current market conditions and the first quarter’s performance.
The company’s balance sheet update earlier this week included an amendment to its syndicated credit facility, providing additional covenant flexibility through the first quarter of 2025. CFO Kelly Porter expressed gratitude for the continued support from syndicated lenders and Coliseum Capital Management, noting the company’s strong foundation to navigate the current macroeconomic environment with $39 million in cash on hand.
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