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Lazydays Holdings, Inc. (GORV)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 net sales were $0.160B, down 19% YoY and down 25% sequential; diluted EPS was a loss of $2.39, and total gross margin was 19.0% (21.4% ex-LIFO) .
  • Adjusted EBITDA deteriorated to $(24.3)M vs $(10.7)M in Q4 2023; results were pressured by $39.1M asset-held-for-sale impairments and a $16.3M non‑cash loss from warrant liabilities .
  • Management executed transformative recapitalization and footprint streamlining (PIPE equity, preferred exchange, credit amendment; completed and planned store divestitures), retaining a $10M Camping World deposit and signing an LOI to sell three additional stores to General RV, adding cash and reducing debt .
  • Operational focus: improved F&I to >$6,000 per unit and ~73% finance penetration; inventory skew toward more affordable towables (77% of new) and reduced motorized exposure; ex-LIFO/inventory adjustments, gross margin rose to 23% in Q4 from 21% in Q3 .
  • Catalyst: continued asset sales and SG&A reductions, healthier inventory mix, and removal of equity issuance obligation tied to Camping World transaction; however, macro demand headwinds and impairments remain near-term overhangs .

What Went Well and What Went Wrong

What Went Well

  • F&I execution: >$6,000 per unit (+3% QoQ), ~73% finance penetration, demonstrating improved attach rates despite unit volume pressure (“our F&I revenue was over $6,000 per unit… finance penetration ~73%”) .
  • Inventory and mix optimization: 77% of new inventory towables (up from 73%), motorized down 44% YoY due to aggressive management and divestitures, positioning for affordability and first‑time buyers .
  • Strategic actions fortified balance sheet and streamlined footprint: $30M PIPE, preferred stock exchange, credit amendment, $10M non‑refundable deposit retained; LOI to sell three stores to General RV to add cash and reduce debt .

What Went Wrong

  • Revenue and margin pressure: Q4 revenue down 19% YoY to $0.160B; total gross margin declined to 19.0% (vs 21.6% YoY) as LIFO and inventory adjustments weighed on reported gross profit .
  • Significant non‑cash and restructuring impacts: $39.1M impairments on assets held for sale; $16.3M non‑cash warrant revaluation loss; SG&A elevated to $53.4M on transaction/legal expenses .
  • Unit volume weakness: new retail units -7% YoY; pre‑owned retail units -36% YoY; total retail units -15% YoY, reflecting persistent macro demand headwinds (and hurricanes cited as regional headwinds in earlier quarter) .

Financial Results

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Revenue ($USD Billions)$0.198 $0.239 $0.213 $0.160
Diluted EPS ($USD)$(7.59) $(3.22) $(1.37) $(2.39)
Gross Profit Margin %21.6% 19.9% 21.2% 19.0%
Adjusted EBITDA ($USD Millions)$(10.7) N/AN/A$(24.3)

Segment revenue breakdown

Segment Revenue ($USD Millions)Q4 2023Q4 2024
New vehicle retail$99.4 $94.7
Pre-owned vehicle retail$72.4 $37.2
Vehicle wholesale$2.5 $1.8
Consignment vehicle$0.0 $1.3
Finance & insurance$11.1 $12.7
Service, body & parts & other$12.7 $12.1
Total$198.0 $159.9

Selected KPIs

KPIQ4 2023Q2 2024Q3 2024Q4 2024
Total retail units sold2,428 3,185 2,750 2,068
New retail units1,264 2,036 1,666 1,172
Pre-owned retail units1,164 1,149 1,084 741
Consignment units0 N/AN/A155
ASP – New ($USD)$78,600 $70,458 $73,404 $80,801
ASP – Pre-owned ($USD)$62,228 $53,009 $55,514 $50,247
Avg GP per unit (ex-LIFO) – New ($USD)$10,044 $6,412 $6,758 $9,052
Avg GP per unit (ex-LIFO) – Pre-owned ($USD)$10,812 $9,976 $10,108 $5,352
F&I per unit ($USD)$4,357 $5,084 $5,741 $5,957
Finance penetration (%)N/AN/AN/A~73%

Key P&L drivers and non-GAAP

  • Impairment charges: $39.1M in Q4 2024 (assets held for sale) .
  • Warrant liabilities: non‑cash loss of $16.3M in Q4 2024 .
  • SG&A: $53.4M in Q4 2024 vs $46.0M in Q4 2023 (transaction/legal costs) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/Q4 2024Not providedNot providedMaintained (no formal guidance)
Gross margin %FY/Q4 2024Not providedNot provided; Mgmt noted ex-LIFO/inventory adj margin 23% in Q4 vs 21% in Q3Informational only (no formal guide)
SG&AFY 2025Not providedExpect overhead/SG&A to decline post divestitures and cost actionsDirectional: Lower SG&A expected
Asset sales/divestitures2025Prior announced Camping World salesCompleted 5 of 7; buyer did not close 2 (Portland OR, Council Bluffs IA); LOI to sell 3 stores to General RV (75-day exclusivity)Portfolio further streamlined
Capital structure2024–2025Temporary waiver; going concern disclosure in earlier periodPIPE ($30M), preferred exchange, credit amendment; removal of obligation to issue shares to Camping World re non-closingsStrengthened liquidity/covenant flexibility

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Inventory mix toward towables75% towables; affordability focus Demand shift to towables; ASP down for new; hurricanes impacted Southeast 77% towables; motorized down 44%; 75% MY2025 units Further tilt to affordability; healthier mix
F&I executionSame-store F&I >$5,300/unit; +6.9% YoY F&I per unit +15.9%; revenue nearly flat >$6,000/unit; finance penetration ~73% Continued improvement
Capital structure/liquidityTemporary covenant waiver; incremental financing initiatives Going concern removed post recap; ~$35M cash expected; debt/interest/dividend reductions PIPE, preferred exchange, credit amendment; retained $10M deposit Materially improved flexibility
Footprint rationalizationStore closures/consolidations in TX/AZ; $25M annualized cost saves targeted Announced asset sales to Camping World; streamline portfolio Completed 5 sales; LOI to sell 3 to General RV; 75-day exclusivity Accelerating divestitures
Macro demandSeasonal improvement did not materialize; trade-ins down ~50% vs historical Industry-wide headwinds; hurricanes (Helene/Milton) cost ~10 sales days Demand headwinds persisted; optimistic near bottom of cycle Stabilization hoped; still pressured

Management Commentary

  • “2024 was a year of significant transformation… designed to strengthen our balance sheet and streamline our operational footprint… we remain laser focused on ensuring we have the right dealership footprint… while maximizing the operational performance of the stores within our footprint” – Interim CEO Ron Fleming .
  • “We completed a comprehensive recapitalization… added immediate cash… eliminated our preferred stock liquidation preference… reduced our debt while providing financial covenant flexibility” – Interim CEO Ron Fleming .
  • “On a same-store basis… improved gross profit per unit… Offsetting these improvements… inventory adjustments of preowned vehicles of $3M and LIFO adjustments of $3.8M… Excluding… our total gross margin was 23% in Q4 vs 21% in Q3” – COO Amber Dillard .
  • “SG&A expenses were $53M… primarily due to transaction/legal… we anticipate overhead and SG&A to decline as we continue to make adjustments… and with completion of divestitures… adjusted EBITDA loss of $24M vs $11M prior year” – CFO Jeff Needles .
  • “We retained the $10M deposit… exercised our remedy… relieves us of any obligation to issue any common stock… avoids diluting our stockholders” – Interim CEO Ron Fleming .

Q&A Highlights

  • The company did not host Q&A for Q4; prepared remarks emphasized operational improvement, SG&A discipline, and divestiture execution; prior quarter likewise indicated Q&A would resume after year-end reporting .
  • Clarifications provided in prepared remarks: expected SG&A decline post restructuring/divestitures; strengthened liquidity through PIPE/preferred exchange/amended credit facility .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable; S&P Global returned actuals only for select periods without consensuses. Values retrieved from S&P Global.*
  • Without consensus, we cannot quantify beat/miss vs Street for Q4 2024. Management did not issue formal quantitative guidance in the release/call .
MetricQ4 2024 ConsensusQ4 2024 Actual
Revenue ($USD Millions)N/A*$159.9
Diluted EPS ($USD)N/A*$(2.39)
EBITDA ($USD Millions)N/A*$(79.8) EBITDA; Adjusted EBITDA $(24.3)

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Near-term fundamentals remain pressured (revenue −19% YoY; gross margin 19.0%; adjusted EBITDA loss widened), largely due to impairments/LIFO/inventory adjustments and unit volume declines .
  • Structural actions are meaningful: PIPE equity, preferred exchange, credit amendment, retained $10M deposit, and ongoing divestitures collectively add liquidity, reduce cash burdens, and sharpen focus on core stores .
  • Operational levers are improving: F&I per unit >$6,000 and ~73% finance penetration, healthier inventory mix toward towables, and ex-LIFO margin of 23% indicate underlying progress masked by one‑time/non‑cash headwinds .
  • SG&A should decline as restructuring/legal costs abate and footprint rationalization completes; monitor cost trajectory and adjusted profitability in 1H 2025 .
  • Macro/industry demand remains the biggest swing factor; management believes the cycle may be near a bottom, positioning the company to benefit as volumes normalize .
  • Watch deal execution: closing the General RV LOI and any additional asset sales will be catalysts for deleveraging and cash generation .
  • Risk factors: demand softness, inventory/LIFO effects, warrant liability volatility, and credit facility covenants/waivers require continued monitoring across 2025 .