Release Date: November 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide an overview of the recent strategic transactions and their expected impact on Lazydays Holdings? A: Ron Fleming, Interim CEO, explained that Lazydays has embarked on a transformative journey to reshape the company for the future. This includes selling seven dealerships and issuing common stock to Camping World Holdings for $65.6 million, plus additional cash for inventory and service work. These actions aim to streamline operations and improve earnings power. Additionally, a $30 million equity pipe was closed, and a $25 million rights offering is planned, enhancing liquidity and capital structure. These steps are expected to strengthen Lazydays' financial foundation and position it for long-term growth.
Q: How did the recent hurricanes impact Lazydays' operations and financial performance? A: Jeff Huddleston, Interim CFO, noted that Hurricane Helene and Hurricane Milton significantly affected Lazydays' operations, particularly in Florida. The storms resulted in a loss of approximately 10 sales days, impacting revenue. Despite these challenges, the company did not suffer serious casualty losses, and the team effectively supported affected stores and communities.
Q: What were the key financial results for the third quarter of 2024? A: Jeff Huddleston reported that total revenue for the quarter was $213.5 million, a decrease of 23.9% compared to the previous year. New unit sales declined by 18.6%, and gross profit per unit decreased by 26.1%. However, finance and insurance revenue remained relatively stable, with a slight decrease of 0.8%, and gross profit per unit increased by 15.9%.
Q: How is Lazydays addressing the challenges in the pre-owned RV market? A: Jeff Huddleston highlighted that demand for pre-owned units remains strong, but supply constraints have limited sales. Lazydays expects the supply situation to improve, and with better access to capital following recent transactions, the company sees opportunities for margin improvement as the market shifts to a buyer's market for dealers.
Q: What changes have been made to Lazydays' capital structure, and what are the expected benefits? A: Ron Fleming detailed that Lazydays has exchanged all outstanding convertible preferred stock for common stock, eliminating a $68 million liquidation preference and $9 million in annual preferred dividends. This simplifies the capital structure, providing all shareholders with the same rights. Additionally, an amendment to the credit facility with M&T Bank offers financial covenant flexibility through Q1 2026, supporting the company's operational turnaround.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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