Executive Summary

Q3 2024 revenue fell 23.9% year over year to $213.5M; net loss widened to $17.7M ($1.37 diluted loss per share) with adjusted diluted loss per share of $1.27; gross margin improved 180 bps YoY to 21.2% on mix and LIFO .
Management executed a recapitalization and asset sale program post-quarter: ~$65M debt reduction, $16M annual interest/preferred dividend reduction, elimination of a $68M preferred liquidation preference, and expected $35M cash; going concern warning removed .
Unit dynamics remained challenging: new units sold down 18.6%, ASPs down 13.1% on towables mix; F&I per unit rose 15.9%, partially offsetting volume/margin pressure .
External events (Hurricanes Helene and Milton) cost an estimated ~10 sales days across Florida locations late in Q3, compounding demand headwinds .
Wall Street consensus estimates via S&P Global were unavailable at time of analysis; beats/misses cannot be assessed. We will update when data becomes available.

What Went Well and What Went Wrong

What Went Well

Gross margin expansion: total gross margin rose to 21.2% (+180 bps YoY; +80 bps ex-LIFO), with service/body/parts margin up 540 bps YoY to 55.4% .
F&I execution: F&I revenue nearly flat (-0.8% YoY) and average gross profit per unit up 15.9% YoY, reflecting improved attachment and sales process quality .
Balance sheet reset and liquidity: company closed transformative recapitalization and asset sales, expecting ~$35M cash, ~$65M debt reduction, and elimination of preferred stock mechanics; “we are now able to remove that going concern” as Q3 is reported .

Management quotes:

“These transformative transactions have fortified the Company’s financial foundation… mark a turning point for Lazydays” — Interim CEO Ron Fleming .
“We are now able to remove that going concern as we report results from the third quarter” — Interim CFO Jeff Huddleston .
“Today marks a turning point… as a nimbler organization with enhanced liquidity, Lazydays’ brightest days are ahead.” — Interim CEO Ronald Fleming .

What Went Wrong

Demand and volume pressure: revenue down 23.9% YoY; new retail units down 18.6%; pre-owned units down 6.7%; average gross profit per unit declined sharply (new -26.1%, pre-owned -23.6%) .
ASP compression: new ASP down 13.1% YoY and pre-owned ASP down 14.1%, driven by mix shift toward towables and away from higher-ticket motorized units .
Higher financing costs: other interest expense more than doubled YoY (+106% to $5.6M) and total other expense increased 37.9%, weighing on earnings despite margin improvement .

Storm impacts:

“Combined impact… estimated was a loss of 10 sales days” across Florida stores due to Hurricanes Helene and Milton, pressuring end-of-quarter sales cadence .

Financial Results

Quarterly Trend (Q1 → Q3 2024)

Metric	Q1 2024	Q2 2024	Q3 2024
Revenue ($USD Millions)	$270.6	$238.7	$213.5
Gross Profit Margin %	14.0%	19.9%	21.2%
Loss from Operations ($USD Millions)	$(16.6)	$(8.5)	$(5.7)
Diluted EPS ($)	$(1.67)	$(3.22)	$(1.37)
Adjusted Diluted EPS ($)	$(1.63)	$(1.42)	$(1.27)

Notes:

Sequential gross margin expanded each quarter, while revenue trended lower through Q3 .

YoY Comparison (Q3 2023 vs Q3 2024)

Metric	Q3 2023	Q3 2024
Revenue ($USD Millions)	$280.7	$213.5
Gross Profit Margin %	19.4%	21.2%
Diluted EPS ($)	$(0.48)	$(1.37)
Adjusted Diluted EPS ($)	$(0.29)	$(1.27)
Total Retail Units Sold	3,208	2,750

Segment Breakdown (Revenue)

Segment ($USD Thousands)	Q3 2023	Q3 2024
New vehicle retail	$172,898	$122,291
Pre-owned vehicle retail	$75,059	$60,177
Vehicle wholesale	$2,056	$1,801
Finance & insurance	$16,462	$16,333
Service, body, parts & other	$14,207	$12,863
Total Revenues	$280,682	$213,465

KPIs and Mix

KPI	Q3 2023	Q3 2024
New retail units sold	2,046	1,666
Pre-owned retail units sold	1,162	1,084
Avg Selling Price – New ($)	$84,505	$73,404
Avg Selling Price – Pre-owned ($)	$64,595	$55,514
Avg GP per unit (ex-LIFO) – New ($)	$9,148	$6,758
Avg GP per unit (ex-LIFO) – Pre-owned ($)	$13,224	$10,108
F&I Avg GP per unit ($)	$4,954	$5,741
Revenue mix – New	61.6%	57.3%
Revenue mix – Pre-owned	26.7%	28.2%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
EBITDA and adjusted operational cash flow	FY 2024	Expected positive EBITDA and adjusted operational cash flow (Q1 commentary)	Not updated in Q3; no numeric guidance provided	Maintained directional, no update
Operating expense savings	FY 2024+	~$25M annual cost savings actions announced in August	Not updated in Q3; continuing operational turnaround	Maintained
Liquidity (pro forma)	Post-recap	N/A	~$35M cash expected pro forma; rights offering planned ($25M)	New disclosure
Capital structure	Post-recap	N/A	~$65M debt reduction; elimination of $68M preferred liquidation preference; ~$16M annual interest/dividend reduction	New disclosure
Store footprint	Post-recap	23 dealerships at 9/30/24	Portfolio streamlined via sale of 7 dealerships; focused footprint of ~15 dealerships post-transactions	Reduced footprint

Note: Q3 materials did not include numerical revenue/EPS margin guidance ranges; disclosures focused on recapitalization, liquidity, and footprint transformation .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
Demand/volume	Q1: Anticipated seasonal lift didn’t materialize; ASPs lower; focus on inventory health . Q2: Seasonal improvement didn’t materialize; same-store volumes down; ASPs lower; inventory healthy .	Continued headwinds; hurricanes cost ~10 sales days; new unit sales -18.6% YoY .	Persistent softness; storm-related disruption.
Mix and pricing	Q1/Q2: Blend shift to towables; ASP down ~17–20% ranges .	New ASP -13.1% YoY; pre-owned ASP -14.1% YoY; towables emphasis .	Continued ASP pressure from mix.
F&I monetization	Q1: F&I per unit ~$4.9K . Q2: F&I per unit ~$5.1K; up 6.9% same-store .	F&I avg GP per unit +15.9% YoY to $5.7K; revenue nearly flat .	Improving attachment/margins.
Inventory health	Q1: ~85% MY2024; >90% 2024/2025; towables rising . Q2: New inventory 26% MY2025/69% MY2024; towables >75% .	Days’ supply improved (new 235 vs 380 YoY; used 76 vs 132) .	Healthier, lower days’ supply.
Cost actions	Q2: ~$25M annual savings; store consolidations .	Operational turnaround ongoing; SG&A as % revenue elevated; improvement expected post-transactions .	Savings to continue flowing through.
Liquidity/credit	Q1: Credit amendment; $15M mortgage raise; warrants issued . Q2: Covenant waiver; plan amendment; $5M incremental mortgage; warrants contemplated .	Comprehensive recapitalization; credit amendment with flexibility through Q1’26; going concern removed .	Materially improved runway.
Footprint strategy	Q2: Closed Waller TX; Surprise AZ consolidation .	Selling 7 dealerships; ~15 locations post-transaction .	Strategic pruning for profitability.

Management Commentary

Strategic message: “We’ve embarked on a significant journey to reshape Lazydays… transformative transactions… strengthened financial foundation and more focused dealership portfolio” — Interim CEO Ronald Fleming .
Profitability path: “With a streamlined and simplified balance sheet and dealership network… we believe we can… chart a path back to profitability” — Ronald Fleming .
Liquidity and capital structure: “Upon full funding… approximately $35 million of available cash… debt reduction of approximately $65 million… reduction of interest expense and preferred dividends of approximately $16 million annually” — Interim CFO Jeff Huddleston .
Operational resilience: “We are very encouraged by the completion of the recapitalization… despite challenging financial results” — Jeff Huddleston .

Q&A Highlights

No Q&A was conducted this quarter; management noted Q&A will resume following year-end earnings in March 2025 .

Estimates Context

S&P Global Wall Street consensus estimates for Q3 2024 EPS and revenue were unavailable at the time of analysis due to access limitations; we could not determine beat/miss versus consensus. We will update this section once SPGI data can be retrieved.

Key Takeaways for Investors

Liquidity and solvency de-risked: Recapitalization and credit amendment materially extend runway; removal of going concern reduces tail risk and should improve counterparties’ confidence .
Margin green shoots amid topline pressure: Total gross margin up 180 bps YoY and F&I per unit up 15.9% YoY; monitor if margin gains persist as mix and pricing headwinds continue .
Volume recovery contingent on macro and supply: Management expects improved pre-owned supply; current demand favors pre-owned; watch inventory procurement and used unit availability .
Storm impacts were transitory but significant: ~10 lost sales days in late Q3 likely depressed close rates; Q4 comps may benefit from normalization, excluding further weather events .
Footprint rationalization to improve earnings power: Selling 7 locations and focusing on ~15 dealerships should enhance unit economics and SG&A leverage longer term .
Financing cost relief ahead: ~$16M annual interest/preferred dividend reduction pro forma; expect visible improvement in “other expense” line in future periods as transactions close .
Near-term catalysts: Rights offering filing/effectiveness and asset sale closings; track updates to liquidity, share count, and store count as transactions complete .

Lazydays Holdings, Inc. (GORV)·Q3 2024 Earnings Summary