LAZY - Earnings call transcript Q1 2022

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Operator

Hello. My name is Stephanie, I will be your conference operator today. At this time, I want to welcome everyone to the Lazydays Holdings, Inc First Quarter 2022, financial results. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session.

ask [Operator's to Thank like you'd your instructions] question you. If conference. you may Harrell, begin Debbie your

Debbie Harrell

unit Thank morning. that Results Interim Operator. We Tomashot, morning, our our Debbie you, a statements Good Corporate issued during First us for Harrell, report the press will Quarter for the has differ earnings as may joining are copy taxes, Bob please company's on and XXXX release the of mix hear consist shift, some reminder, discussion sales, margins, today compensation at including of Financial statements, to of page Controller of for Officer, Relations many Conference a stock-based of periods information earnings I'm gross And Call. the Actual and trends that expense, regarding Chief Lazydays. thank our forward-looking this release is operating factors. DeVincenzi, statements without Investor product the exhibit with available you a from X-K or the call future Mr. expansion. an under revenue, limitation, geographic website, Form the been and SEC. result expenses, Nicholas Events our our today on note results as Mr. current and Presentations forward-looking the materially Executive section me furnished you our could of With

the with Form For additional filed in information, X, please X-K discussed the refer SEC, factors on to the risk May XXXX.

earnings measures. Please measures most of results, our press EBITDA of comparable are to for company's useful non-GAAP to including for financial discuss GAAP believe directly non-GAAP reconciliations measures EBITDA. understanding adjusted will financial financial the performance release also we that these We and the refer

of XX,XXXX and For the information results presented The XXXX. represents Holdings, months Inc. operating the ended Lazydays financial three March

before financials. opening of it is provide who first the XXXX quarter to shares remarks my introduce pleasure overview DeVincenzi, Tomashot Nicholas some Robert will Now an

Robert DeVincenzi

Debbie. you, Thank

recent first our beautiful our me acquisition River outside and commentary release of which right a Before Oklahoma. is yesterday. a East-to-West relating press issued we for quarter of in to we of RV note most Forest let dealer supports XXXX start substantial Thor, Dave's located [Indiscernible] our letter our intent, results, products. [Indiscernible] announced Dave's Tulsa, planned We

future. entrusted the We have majority XX our named sites dealer 'XX. legacy expect Dealership Stephanie into acquisition the look to day This our with of the Gloria the Dealership and the with daughter the Dave's in this for Dealership to our business who Lazydays we in within be owner XX to acquisition RV is Dave's his of to welcoming President finalize their and to along Pierce, forward will extend expand for Claremon and and Gloria's Arkansas, and the days. now locations we're customers to announced Dave We in-development, started Greenfield take multi-generational Kansas footprint the Oklahoma, ago will footprint Dealership is and service at years and Pierce, XX that family. wife pleased Missouri,

XXXX performance one by me quarter period, financial it providing our as Now, let a to few highlights. relates start

million quarter with in call. in results later we're on million expectations. detail million, revenue XXXX of and million. bit announcing $XX.X million on our of quarter of expectation $XX.X reporting provided adjusted Nick financial an of Tomashot the net our we In a our EBITDA provide year. to adjusted indicated quarter again, of of our each demonstrated first million of which excellent Today, preliminary an line The remarkable start and performance results, and income new released income revenue XXXX, the will expressed earlier $XX.X XXth $XXX of more year EBITDA first of April $XX.X net $XXX.X first

year Demand pleased our strong with the Average profit unit associated confirmed the period the of of -owned we're period, sales parts value $XX,XXX for assure exceeding ASP willingness accepted business levels unit in by dealerships -owned were the continued supported with to gross in lifestyle. a and the a generated, over retail ago. the the pleased customers in the a the quarter price new revenue, as We be to our we year associated unit both that be purchased strategy approximately market and and sale. offer we robust pre continued During period most ago. performance the service, same can delivering products of with or mix trade sold of for on were new our to products and with units with pre to unit period new same retail sales up pay open RV the first

greeting our continued of innovative pleased our or prospect engagement of excellent in to meet customers QX. through our use our with and Our in handshake and online a dealerships. with to be We're one future analytics via phone ability in-person the data

During the OEM our in inventory our selling our stocked the as worked get we, for with saw along season. QX we position lots spring period, to improvement partners,

inventory Although inventory made product work progress has our the continues industry great to towards full to levels, restore motorized recovery. towable

of market forms industry As and The scarcity a scarcity, demand travel new the levels. of our quite of inventory as margins a With pre normalization and in talked focused normalizes. read other prudently recreational normalization; bit inventory as are recover. various about we we industry normalization also the managing of pricing -owned to is all working and the and outlets, process regard on through inventory has and industry

OEM Lazydays and relationships, plans, in industry also our superior by making value help terms believe offer, result how we them As high brands, which for fully with RV and data drive We're target of in for along analytics willingness the prospective to we We're lifestyle. efforts of adjustments consumer Lazydays repurchase repurchase associated $XX.X market pricing did to preference to and very owners and million opportunities our through segments consistent the are the utilizing program. focused models, and voice when our share QX, improving investments the with to to markets our engagement opportunistically effectively. see strategy of normalization our margins, common to in community premium on both announced more RV we and with responding our efforts with strategic stock, engage previously our we to digital marketing Shifting in pay. and during of in share and fortunate

months Our million. the share XX $XX.X repurchases last over totaled

Dealership continue Pierce, to Claremore Dave's developments the Florida. of the growth close aforementioned Ohio, We acquisition Surprise, to and subsequent also of Bluffs, in QX, Fort on Iowa, the Greenfield Council Wilmington, Arizona, focus with RV. And

actionable acquisition and markets see to they Greenfield enter promising plans Dealership will new opportunities. as We mature. opportunities and to We continue to evaluate new we continue our locations share

all Board. non-binding As The Board evaluated advanced have it's ongoing the and with well-qualified on of to advised ultimately in its has on and myself to and XXXX, Nick offer. new group. company for Board Tomashot, XXth over together the the the interactions the overview of forward assistance will unsolicited from results. previously promising search of complete of to partners continues the more interactions to who offer CEO team executive rejected of obligations, Lazydays reject disclosed, acquire make. subset to assure governance was company the move I that as XXXX. candidates. March does turn under all received the would company process the with now offer unanimous search has quarter building I the numerous we proposal present announcements evaluation executives work its The all to to the to will offer customers These the an performance of The at the The of like provide to the every $XX on a no with financial XXXX we directors first B. of overture. and update and day Riley direction obligations, I although disclosure the of shareholders [Indiscernible] it of of was the search are appreciative ultimate the response the per can a and had share. for commitment personally and March Xth as business professionally call make continue evaluated The time company a life.

Nicholas Tomashot

units $XX.X from or excluding quarter otherwise, million, of versus XX.X%. quarter sale recreational XXXX. unit period up were XXX XXXX. or same first revenue XX.X% the $XXX.X recreational were vehicles that vehicles RVs the three-month the first the $XXX.X stated up XX.X%. or million $XXX.X million was $XXX.X from Bob. million, for RV Revenue comparisons from Thank QX XXst, or Total of Revenues up $XX X,XXX XXXX was up million quarter wholesale unless new Please are sale you, note March million ended the the units, or XX%. for results a sales,

was of excluding million. excluding for sale increased Pre-owned -owned of price of revenue. insurance of million sold, first miscellaneous excluding gross recreational vehicles was business revenue parts, was revenue or of XX.X%. QX from XXX up to units new compared X,XXX or our RV $XX.X or XXXX well a of or consisted $XX,XXX, XX.X%. by XX% or million, up increase versus up and pre million as million, service, XX.X% first F&I up $XX.X sales average sales the versus an XX.X%. XX.X% $XX,XXX XX.X% XXX $XX.X other quarter units as million a selling price XXXX. of or accessories, s up adjustments service s in units, X.X%. of revenue, and New million, In RV $X.X $XXX quarter $XX,XXX of wholesale driven or the XX.X%, was last at units RV $XX,XXX, average or XXXX. from selling profit to million $X parts F&I XXXX. million and QX compared Pre or XX.X% were unit to out these The lines LIFO $XX.X adjustments -owned in LIFO channels and and revenue or up between $X.X a $XX.X or was was The total, XXXX The the $XXX.X margin other million periods increase up finance to related gross Revenues RV two revenue the non-cash, campground increase

million With the million non-cash $X.X unfavorable $XX.X and periods XX.X%. compared driven average million, between the sold selling of by to was price, which year. including increase change in profit swing $XX.X or Gross adjustments, quarter prior a up the had units for net LIFO

improved reconciliation stock-based quarter overhead expenses was EBITDA Excluding compensation Maryville, first reflecting to $XX.X Minnesota is year. and from stock-based Vancouver, associated and $XX.X $X.X RV compared a acquired Ex-LIFO of increase with Wisconsin was of discussed. compensation Adjusted earnings previously QX percentage refer Please profit our XX.X% to This in and and in was the and was This and quarterly adjusted margins attributable income a release EBITDA Washington, with XXXX Net a by to XX.X% XXXX. for Oregon, compared as $XX.X or table, to overhead points to associated Amortization SG&A XXXX. million depreciation for EBITDA. XX.X% to million driven amortization, XXXX. million EBITDA $XX.X XXX prior performance SG&A the the XXXX, year. sales income in depreciation acquired quarter the associated our the we gross dealership, the $X.X by overhead XXXX, basis by in profit in to margin increased for acquisitions increased overhead in gross dealerships million of up March, up increased increased dealership Portland, overhead XX.X%. Milwaukee, million from the transaction with $XX.X Monticello, $X.X and Tennessee by was compared costs, million, to improved adjusted This Lazydays. which from to for prior above. in amortization million quarter million I've gross which August includes profit opened decreased as and offset partially net XXXX XX.X% record relative mentioned March

paid an more December RV inventory cash in cash cash Now, The a to turning we Cash inventory impact by cash average and decrease reflected million million $XX.X $XXX.X of net balance a than our of includes $XX.X outflows $XX.XX. offset negative This price by cash working provided activities at increase includes million XXst and is inflow million playing of million. by $X.X and million, million the X,XXX,XXX $XX.X continues shares operating March of million $XX.X financial hand inventory sheet by approximately had XXXX. in is impact increase offset financing property XXst, used repurchase in activities lower the provided $X.X provided purchases capital includes of financing of stock depleted for position, $XX.X also with of this of and activities. from on of common cash of equipment of activities a cash to Operating as the flow levels. for cash of acquisitions and financing by the $XX.X cash recover impacts million, cash of

As pre -owned million in of March in we had of vehicles, in $X.X $XX.X XXXX, $XXX.X inventory and million million. million in parts of inventory, new LIFO XXst, reserves million $XXX consisting vehicles, $XX.X approximately

As under $XXX.X term million credit million of our no notes of borrowings outstanding, March facility, XXXX, had million $X.X and XXst, we Floorplan in payable on our facility. revolving loans gross $XX

had also million on Thank million. and payable $X.X of those outstanding, on loans to $X.X $X.X approximately approximately We a million outstanding PPP property you. mortgage acquisitions, related of

over turn to like I'd Now, the call Bob DeVincenzi. to

Robert DeVincenzi

Thanks, Nick.

may and the our We into strong brand to capabilities, environment provide that second and with products OEMs to outstanding As that beyond, excellent identity, premier a external enjoy quarter superior and relationship locations, dealership opportunities look address are we we well-educated present. the believe we increasingly consumers. to well-positioned challenges service ahead

We as when business shareholder I to that model of said, and the long-term In connection conference prospective the call, maximize we ended will also agile have our capital we allocate operating closing, the and customers. various continue with mind year-end data growth Lazydays innovative built to XXXX to QX support investments and in analytics using to when approach value. the an

we During Greenfield buyback time that delivered the subsequently, announcements at on acquisition executing an and additional QX while and objective period with our program. same share have on

growth investments with and Board. focus invest the to continue generate cash of the balance share to This through team be buyback. opportunities to balance continue future will our will flow business core We to leadership in

We for will now questions. call open up the

Operator

[Operator instructions].

Steve comes Your first question from Craig-Hallum. Dyer with

Your line is open.

Steve Dyer

morning. Thank you. Good

as thinking know to the of - give the get some of see in to stores maybe directionally, seen year-over-year I you guidance, core a business you're recent don't lot sales same-store looking as sense could about through basis. of vis how what we've acquisitions think Just both the guess years? way go-forward Guess us -a well a help forward, as but pace trying -- really vis just on doing you I

Robert DeVincenzi

Steve's very for question a handle Thanks make to acquisitions of Nick, and about Steve. question you then question. much the the I'll want do on Sure, going couple comments forward?

Nicholas Tomashot

and it's though, we're getting normal as The there's Yeah. scarcity strong say we're the in inventory. the off still particular side inbound on Bob of -- would leveling mentioned, towable there. still seeing to sequentially, levels interest side, RVs. some where tapering I Motorized closer

little So, the bit are sequentially, than are because improved year-on-year, we're it's bit, we're some And had still seeing tell little nice typically margins, comments on. in the but regard they to to let margins pace quarter. evaluating quarter his margins right is fourth we're what for what starting to first earlier around a taper a hard Bob and lower add us, him mentioned with acquisitions, that color in I'll that working

Robert DeVincenzi

Greenfields And two our primary have store of to to second real focus on organic growth. grow those Steve, course the addition as to is Nick of important Thanks, one is we the we the of enter, estate, course, us to mechanisms so the to think the markets we in availability note business of for Greenfields, acquisitions. I exclusively growth, it's know, that control and have you appropriate and availability of brands. subject

to in Greenfield, this prepared to our beyond plans, controllable we But to in not a this less to share you of on engaged those to commented less will a I'm with although are time, acquisition Greenfield against. pretty deal at I pacing and number be a plan, visibility our So, and have counterparties what growth good comfortable we the that controllable, we're in least have of on At in detail don't more that respect expectation express ability there really confident course, with confidently have in because alternatives. are evaluating set actively delivering call.

you in-precision our So, that growth the element appreciate I hope can of of plant.

Steve Dyer

makes helpful. That sense,

it just back aspect. sounds Would demand you that Should much inventory. supply but the want read It the manage perspective? relatively for from bit to to we understanding, see on a what demand pretty it? you trying total like fully where certainly say You've and little talked inventoried about into you a it's you're side,

Robert DeVincenzi

to Yes. pick that Thanks. Nick, do you up? want

Nicholas Tomashot

target level. absolute don't target we Yeah, an sell-through. or We turns inventory

additional side, motorized. the towable towable definitely points. take to Historically, motorized, particularly could said like price towables lower of more we on a There were terms stock. that then be the inventory. the are the want would roughly some On higher-end, on and we And higher-price-point Where we in between to have of of. we XX/XX that bit

know, third adding around been XX/XX. one we've and two-thirds, getting industry to closer you as locations, around the is As that's

So, towards the we cons motorized. there margins of more same prefer we the to pros of we've kind see continue we and scarcity, is been believe at while And will would But do we the skew our product. seeing.

Steve Dyer

me. Okay. That's for Thank it you.

Robert DeVincenzi

Thank you, Steve.

Operator

Truist Question with comes securities. Short from Mike

line Your open. is

Robert DeVincenzi

Great. Hello Mike.

Mike Short

Hey, how Good you? are morning.

a question, in clarification Just just vehicle more for margins. of the terms Nick, maybe

mix. I maybe the impacted you quarter in just margins the there's what the those to But can think During relative about on understanding can am seasonality by XX%? rate that reported around you at quarter talk be I exit

Nicholas Tomashot

I and course them, of been what Yeah, ASP at across think of increases. the going pretty they But the cost the I quarter. so we're with much especially were up I've with per flat -- and say watching kind relatively quarter. vehicle the grosses over consistent looking would the

Mike Short

just understand And talk or of just I'm of sense trying a a about or six to we year of in really timing new these? just, bandwidth can think should whether guess helpful. Is us scale or it and you we scope of standpoint can't acquisitions what whether two to get a about standpoint That's how a scope you is management from from general are that's acquire Okay. just I scale additions, to it I I think store integration you where should give three? guess to but today. that, your ability four financial, that's about

Robert DeVincenzi

anymore previously. Yes, to Mike, on want I guidance have that offer offered than wouldn't we

to Although the are that I we cash in the capacity has say company growth internally the plan that will execute implementing. planning

and Of We structure financial as real securing at then the in and us puts of the course, locations. build which that finance you ultimately we're resource back to internal to of estate but and implement evaluation, least during improvement secure the buyback partner, both of Greenfield have business. where we Greenfield implementation and the cash allocated acquisition, with appropriate that We like period, level tend evaluation meeting an to construction ultimately process Greenfields bringing implementation. feel doing position and a the know, acquisition and

wouldn't any I So, previously. what comments have really beyond offer beyond other got it that, we've

Mike Short

Fair enough. Thanks a lot.

Robert DeVincenzi

question, it. for thanks Appreciate Yes, the Mike.

Operator

comes Craig from Next Baird. question Kennison with

Your open. line is

Craig Kennison

Hey, for Thanks good my taking morning. question.

curious at rate environment in that rise? rising policy your is at your Fed guess. behavior I'm consumer aimed supply in moderating a can businesses the that. on price, so we're So, clearly Have change as we any a lower seen meet lines you front curious, I'm rates I demand now of

Robert DeVincenzi

Craig. one? that to address Great Nick, question, you like would

Nicholas Tomashot

Yeah.

of that are not there analysts some impact us a fact, impact. that There prices seen we on far, an haven't on was, was interest call there really but other so it the as this In an cost rates That's data as seen haven't the prices or lot recall of out And the won't one factor still their survey. have demand an yet. it big continue, saying gas I be miles having I'm for actually number driven, pinch. impact. done were I surveyed, well who any are had substantial so dealers price think, interest seen really it's gas can the far, is. consumers, than And haven't total really a on to at the a a units ownership payment we loan. relative is or that, the RV But enough how of sticker of rather really rates the that can't

Craig Kennison

because make significantly more have about comment. would point is about helpful very the curious like think unit monthly A expensive I payment I that a for you like today. been

unit, see payment actually ASP gone typical don't because absorb see inflation these think higher gone pressure up unit. maybe prices? To drop on do higher can extent ASP, a you you out because the a the some much you and it's than of so can better monthly your rates So, on has has consumer your

Robert DeVincenzi

Yeah.

in a prices selling thing point our we're points. I various array think price we average I'd our comments of have other But out products mentioned we going that seeing up. whole at is the

terms up previous so, of And you'd people prices in of whether to put the each that bought from $XXX,XXX. a person anybody today. can up to whether the or hard what going But being unit from $XX,XXX walks evaluate into to products. have are would've they environment because to in almost versus pricing in relative It's down the in anything we selective $XX,XXX differences of tell they're door of

Craig Kennison

it. much. Got thank so you Hey,

Robert DeVincenzi

Thank you, Craig.

Operator

are turn further this no questions Mr. over at you. time. the call I There to DeVincenzi,

Robert DeVincenzi

you, further Thank everybody forward to us. next you for results. thank I'd like updating our Stephanie. Thank conference call Great. quarter for report second all when to joining our look certainly we we you call on and in participating our

Operator

Thank you. This conference today's call. concludes

disconnect. You may now

Lazydays (GORV) 5 May 222022 Q1 Earnings call transcript