Executive Summary

Q1 2024 revenue declined 8.5% year over year to $270.6M, with total gross margin compressing to 14.0% (vs. 21.6% in Q1 2023) and GAAP diluted EPS of $(1.67); adjusted diluted EPS was $(1.63) driven by lower vehicle margins and higher interest expense .
Management reset full-year outlook: now anticipating a FY 2024 pre-tax loss but positive EBITDA and adjusted operational cash flow (vs. prior guidance for positive net income), citing softer-than-expected demand into the spring selling season .
Inventory health markedly improved: new inventory ~85% MY2024 at quarter-end and >90% 2024/2025 as of May; days supply fell to 195 for new and 64 for pre-owned (from 380 and 132 at 12/31), positioning LAZY for cleaner mix into the summer .
Liquidity/covenants: credit facility amended to provide covenant flexibility through Q1’25; closed a $15M mortgage facility upsize (Coliseum), issued 2.0M warrants at $5.25, and cited $39M cash “as of today” plus ~$45M potential mortgage capacity .
Wall Street consensus (S&P Global) was unavailable at retrieval; beat/miss analysis cannot be provided. S&P Global estimates could not be retrieved due to vendor limitations at this time.

What Went Well and What Went Wrong

What Went Well

Inventory quality and mix: “finished the first quarter with approximately 85% of our new inventory model year 2024… As of today, our new inventory is comprised of more than 90% 2024 and 2025 model year units” (CEO), supporting future margin recovery as discounting on aged units abates .
Working capital and liquidity actions: amended syndicated credit facility through Q1’25; $15M mortgage upsize with $10M for general purposes, $5M to pay down revolver; “cash on hand of $39 million as of today… capacity to generate an estimated $45 million of additional mortgage loan proceeds” (CFO) .
Unit growth and resilient F&I per unit: total retail units sold rose 7.2% YoY to 3,521; F&I gross margin held 96.2% and F&I per unit was $4,919 (roughly flat YoY) .

What Went Wrong

Gross margin compression: total gross margin fell 760 bps YoY to 14.0% as new vehicle margin dropped 950 bps to 3.7% and pre-owned margin fell 850 bps to 11.8%, reflecting pricing pressure and mix .
ASP and per-unit profitability declines: new ASP fell 16.8% to $74.3k; pre-owned ASP fell 16.5% to $54.3k; average GP/unit ex-LIFO dropped 77% (new) and 52% (pre-owned), weighing on earnings .
Higher interest burden and operating deleverage: floorplan interest expense rose 38.8% to $7.7M and other interest expense rose 166% to $4.5M; operating income swung to a $(16.6)M loss, driving net loss to $(22.0)M vs. $(0.3)M last year .

Financial Results

Summary vs prior periods and (if available) estimates

Metric	Q1 2023	Q4 2023	Q1 2024	Consensus (S&P Global)
Revenue ($USD Millions)	$295.7	$198.0	$270.6	N/A (unavailable)
GAAP Diluted EPS ($)	$(0.17)	$(7.59)	$(1.67)	N/A (unavailable)
Adjusted Diluted EPS ($)	$0.00	$(1.09)	$(1.63)	N/A (unavailable)
Total Gross Margin (%)	21.6%	21.6%	14.0%	N/A (unavailable)
Operating Income ($USD Millions)	$6.0	$(127.0)	$(16.6)	N/A (unavailable)
Net Income ($USD Millions)	$(0.3)	$(108.0)	$(22.0)	N/A (unavailable)

Note: S&P Global sell-side consensus could not be retrieved at the time of analysis; beat/miss not shown.

Segment/Line-of-Business Detail (Revenue and Margins)

Metric	Q1 2023	Q1 2024
New Vehicle Revenue ($USD Millions)	$176.7	$152.7
Pre-Owned Vehicle Revenue ($USD Millions)	$84.8	$79.6
Vehicle Wholesale Revenue ($USD Millions)	$1.7	$6.2
Finance & Insurance Revenue ($USD Millions)	$16.9	$18.3
Service/Body/Parts/Other Revenue ($USD Millions)	$15.5	$13.7
New Vehicle Gross Margin (%)	13.2%	3.7%
Pre-Owned Gross Margin (%)	20.3%	11.8%
F&I Gross Margin (%)	95.9%	96.2%
Service/Body/Parts Gross Margin (%)	53.8%	54.2%
Total Gross Margin (%)	21.6%	14.0%

KPIs

KPI	Q1 2023	Q4 2023	Q1 2024
Total Retail Units Sold (units)	3,284	2,428	3,521
New Units Sold (units)	1,980	1,264	2,055
Pre-Owned Units Sold (units)	1,304	1,164	1,466
New ASP ($)	$89,266	$78,600	$74,263
Pre-Owned ASP ($)	$65,012	$62,228	$54,281
Avg GP/Unit ex-LIFO – New ($)	$11,826	$10,044	$2,704
Avg GP/Unit ex-LIFO – Pre-Owned ($)	$13,227	$10,812	$6,396
F&I per Retail Unit ($)	$4,929	$4,357	$4,919
New Days Supply (days)	380 (12/31/23)	380 (12/31/23)	195 (3/31/24)
Pre-Owned Days Supply (days)	132 (12/31/23)	132 (12/31/23)	64 (3/31/24)
Cash ($USD Millions)	—	$58.1 (12/31/23)	$39.4 “as of today” on 5/15

Guidance Changes

Metric	Period	Previous Guidance (3/8/24)	Current Guidance (5/15/24)	Change
Net Income / Pre-tax	FY 2024	Anticipated “return to profitability after Q1” and “positive net income” for FY 2024	Anticipates a FY 2024 pre-tax loss	Lowered
EBITDA	FY 2024	Not specified numerical target	Positive EBITDA (non-GAAP; unreconciled)	Clarified (non-GAAP positive)
Operational/Operating Cash Flow	FY 2024	Positive operational cash flow	Positive adjusted operational cash flow (non-GAAP; unreconciled)	Maintained (non-GAAP)
Liquidity/Covenants	Through Q1 2025	Waivers/relaxed covenants through Q2’24 and return to standard by YE’24	Amended facility to provide additional covenant flexibility through Q1’25	Extended flexibility

Note: Company states non-GAAP full-year metrics (EBITDA and adjusted operational cash flow) are not reconciled due to unpredictability of excluded items .

Earnings Call Themes & Trends

Note: A Q1 2024 earnings call transcript was not available in our corpus; themes below reflect management’s Q1 press release and prior quarter disclosures.

Topic	Previous Mentions (Q3 2023 & Q4 2023)	Current Period (Q1 2024)	Trend
Demand/Macro	Q3: Revenue -16% YoY; margins pressured; commentary on economic pressures . Q4: “challenging operating environment,” discounting aged inventory; improving GP from Dec–Feb .	“Increasing unit volumes in March and April… did not materialize as we had hoped” .	Softer than expected seasonal lift; cautious near term.
Inventory Health/Mix	Q4: >80% current model-year new inventory; rebalanced aged units .	~85% MY2024 at 3/31; >90% 2024/2025 as of May; new days supply down to 195 .	Material improvement; healthier mix and lower days.
Pricing/Margins	Q3: New GP/unit fell; total GM down 320 bps . Q4: Total GM 21.6%, down YoY; pressure persists .	New GM 3.7% (−950 bps YoY), pre-owned GM 11.8% (−850 bps YoY) .	Still under pressure; mix and discounting headwinds.
F&I and Service	F&I per unit resilient and high margin (mid-90s% GM) .	F&I revenue +8.6% YoY; GM 96.2%; per unit ~$4.9k (flat) .	Stable offset to vehicle margin pressure.
Liquidity/Covenants	Q3: Adequate liquidity; rights offering planned . Q4: Waivers through Q2’24; $35M mortgage facility closed .	Facility amended; $15M mortgage upsize, cash “as of today” $39M; ~$45M potential mortgage capacity .	Proactive balance sheet management; flexibility extended.
Network/Footprint	Q3/Q4: Acquisitions & greenfields; 25 locations by early 2024 .	25 dealerships at 3/31/24 .	Scale in place; focus on store performance.

Management Commentary

CEO (John North): “We made significant progress… finished the first quarter with approximately 85% of our new inventory model year 2024… As of today, our new inventory is comprised of more than 90% 2024 and 2025 model year units.” However, “increasing unit volumes in March and April… did not materialize as we had hoped.” He now anticipates “a pre-tax loss but both positive EBITDA and adjusted operational cash flow” for FY 2024 .
CEO (tone/confidence): “We strongly believe in the earnings power of our store base and look forward to unlocking its full earnings potential as the industry recovers” .
CFO (Kelly Porter): “With cash on hand of $39 million as of today… and the capacity to generate an estimated $45 million of additional mortgage loan proceeds… we believe we have a strong foundation on which to navigate the current macroeconomic environment.” Also noted additional covenant flexibility through Q1’25 and details of the Coliseum financing/warrants .

Q&A Highlights

A Q1 2024 earnings call transcript was not available in our corpus; consequently, no Q&A themes or clarifications could be extracted beyond the disclosures contained in the 8‑K/press release .

Estimates Context

We attempted to retrieve S&P Global (Capital IQ) consensus estimates for Q1 2024 EPS and revenue, but the data was unavailable at the time of retrieval due to vendor limitations (mapping/limit errors). As a result, beat/miss analysis versus Wall Street consensus cannot be provided. We will update this section upon successful retrieval.
Management’s guidance shift (from positive FY24 net income to a FY24 pre-tax loss with positive EBITDA/adjusted operational cash flow) suggests Street models may need to move lower on full-year GAAP profitability while incorporating expected positive non-GAAP EBITDA/cash flow .

Key Takeaways for Investors

Margin pressure persisted despite unit growth; total GM fell to 14.0% and new/pre-owned margins compressed sharply, indicating continued pricing/mix headwinds and promotional environment in RV retailing .
Inventory “reset” largely complete; new inventory is predominantly current model-year and days supply dropped significantly, a leading indicator for future margin normalization as aged discounting fades .
Liquidity and covenants de-risked near term via facility amendment through Q1’25, $15M mortgage upsize and $39M “as of today” cash, plus ~$45M potential mortgage capacity; this supports operations through a softer demand backdrop .
Guidance reset is a key narrative shift and likely stock catalyst: management now expects a FY24 pre-tax loss, but positive EBITDA and adjusted operational cash flow; investors should recalibrate expectations for GAAP profitability timing .
F&I remained a bright spot (96%+ gross margin, ~$4.9k per unit), partly offsetting vehicle margin pressure; service margins also held above 50%, underscoring the importance of non-vehicle profit streams .
Watch interest expense: floorplan and other interest rose materially YoY, magnifying operating deleverage; rate trajectory and inventory levels will influence carry costs and earnings sensitivity .
Near-term setup: with cleaner inventory and extended covenant flexibility, upside depends on demand stabilization into peak season and evidence of per-unit margin recovery; absent that, FY GAAP losses and cash discipline remain the focus .

Appendix: Additional Financial/Balance Sheet Details

Q1 2024 cash from operations (as reported) was $80.2M, largely reflecting inventory reductions; adjusted for floor plan changes and offset account, operating cash flow was $(8.8)M for the quarter .
Balance sheet at 3/31/24: inventories $346.6M (down from $456.1M at 12/31/23), total assets $821.7M, stockholders’ equity $133.5M; current ratio (ex-LIFO) 1.07 vs. 1.05 requirement .

Sources: Q1 2024 8‑K press release and exhibits (May 15, 2024) ; Q4 2023 8‑K press release (Mar 8, 2024) ; Q3 2023 8‑K press release (Nov 3, 2023) .

Lazydays Holdings, Inc. (LAZY)·Q1 2024 Earnings Summary