Lazydays, an RV dealer network and marketplace, provided another update showing a major bump in RV orders and demand during late April and May 2020.
Following a 30% to 40% year-over-year drop in RV demand in the first half of April, demand increased significantly in mid-April. Demand remained strong in May and continues to be strong in June.
Customer RV orders in May 2020 increased approximately 90% versus prior year after adjusting for cancelled orders. When RV orders are delivered to the customer, they are recognized as unit sales and revenue.
May 2020 adjusted EBITDA increased approximately 80% versus May 2019. May unit sales increased approximately 55% versus prior year. May revenue was up approximately 36% from a year earlier.
Lazydays believes that the unprecedented growth in revenue and earnings is the result of four factors: 1) Significant market share gains related to the Company’s efforts to provide a Best-in-Class Customer Experience and better understand and meet customers’ needs; 2) Pent up demand related to shelter-in-place orders established in March and April; 3) Increased interest in the RV lifestyle as a way to vacation and travel while social distancing; and, 4) Synergies related to the Company’s integration of acquired dealerships.
RV Average Selling Prices (ASPs) continued to trend lower in April and May as new RV customers show a preference towards used RVs and lower priced new RVs.
Demand has been strong across all Lazydays dealerships.
RV Inventory is constrained, but the company believes it has or will receive adequate inventory to meet customer demand. All major OEMs resumed production in May.
As a result of the 90% growth in customer RV orders placed in May, the Company entered June with a very strong backlog and believes June 2020 year-over-year performance will be similar to May 2020.
Lazydays operates the world’s largest recreational dealership, based on 126 acres outside of Tampa, Florida. Lazydays has dealerships located at The Villages, Florida; Tucson and Phoenix, Arizona; Minneapolis, Minnesota; Knoxville, Tennessee; and Loveland and Denver, Colorado. Lazydays also has a dedicated Service Center location near Houston, Texas. Lazydays features over 3,000 new and pre-owned RVs, more than 400 service bays and two on-site campgrounds with over 700 RV campsites.
