The following is a summary of the Lazydays Holdings, Inc. (GORV) Q1 2024 Earnings Call Transcript:
Financial Performance:
Lazydays Holdings reported a total revenue of $270.6 million for Q1 2024, showing an 8.5% decrease.
Lazydays Holdings expects a pre-tax loss for the rest of 2024 but predicts positive EBITDA and adjusted free cash flow.
New unit sales fell 11.1%, and gross profit per unit declined 75.7% due to aggressive discounting.
Used retail unit sales reduced by 4.6% and gross profit per unit dropped by 51.4%.
The company posted an adjusted net loss of $21.4 million for the quarter.
The company raised $15 million through an expansion of mortgage financing.
Business Progress:
Despite sales softness, Lazydays focused on inventory health, procurement, finance, and insurance performance as well as cost control.
Over 90% of the company's inventory is now 2024 or 2025 model year, and they have increased the acquisition of used units.
Finance and insurance per unit increased $170 per unit year-over-year despite a 13% drop in average selling prices on units.
The company is managing inventory to meet demand and profitability targets while monitoring changing regional demands for its motorized and towable units.
Lazydays is managing used inventory on a case-by-case basis, focusing on older models in demand.
The company continues its partnership with Grand Design and is optimistic about retail improvements as the season heads into Spring and Summer.
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