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Jun 30, 2024
Lazydays Q2 2024 Earnings Report
Lazydays reported a net loss for Q2 2024 due to a decline in sales volume and increased costs.
Key Takeaways
Lazydays reported a decrease in total revenue and a net loss for the second quarter of 2024, compared to the same period in 2023. The company focused on maintaining healthy vehicle inventory and improving F&I per unit, but anticipated seasonal sales volume improvement did not materialize. Cost reduction actions have been implemented to save approximately $25 million annually.
Total revenue decreased to $238.7 million compared to $308.4 million in Q2 2023.
Net loss was $44.2 million, a significant drop from the net income of $3.6 million in the same period last year.
Same-store sales declined in both new and used unit volume relative to the first quarter, but gross profit per unit sold improved.
Implemented cost reduction actions expected to save approximately $25 million annually and closed the Waller, Texas dealership
Lazydays
Lazydays
Lazydays Revenue by Segment
Revenue by Segment
New Vehicle Retail Revenue
CapyFin.comPre-Owned Vehicle Retail Revenue
CapyFin.comVehicle Wholesale Revenue
CapyFin.comConsignment Vehicle Revenue
CapyFin.comFinance and Insurance Revenue
CapyFin.comService, Body & Parts Revenue
CapyFin.com Forward Guidance
Lazydays anticipates annual cost savings of approximately $25 million from recent cost reduction actions. The company also received a nonbinding commitment for an additional $5 million in capital.
Positive Outlook
- Anticipate these decisions will save approximately $25 million annually.
- Received a nonbinding commitment from the clients of Coliseum Capital Management to provide an additional $5 million in capital
- The terms of the incremental advance are substantially similar to the terms of the existing mortgage loan facility and require no additional collateral to be added to the pool.
- Over 75% of our inventory is towable product, up from 70% at the same time last year.
- Our same store F&I was over $5,300 per unit, up 6.9%, despite average selling prices being lower by approximately 17% on a blended basis.
Challenges Ahead
- Given the current unit sales volume, we have implemented further cost reduction actions in August that should be substantially complete by the end of September.
- We have also closed our Waller, Texas dealership, and consolidated our retail operations from two locations to one in the Surprise, Arizona market.
- On a same-store basis, we saw a decline in both new and used unit volume relative to the first quarter
- Trade-ins on vehicle sales have been off approximately 50% compared to our historical averages
- Net loss for the second quarter was $44.2 million compared to net income of $3.6 million for the same period in 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income