Lazydays interim CEO Robert DeVincenzi offered an update on the dealer’s CEO search. The search has been underway since former CEO William Murnane resigned in late December.
DeVincenzi said the search is continuing with the help of a search firm and under the direction of Lazydays’ board of directors.
“The board has evaluated numerous well-qualified executives and has had advanced interactions with a promising subset of candidates,” DeVincenzi said. “These interactions continue although at the present time we have no announcements to make.”
DeVincenzi and the Lazydays board has been under pressure from activist investor group Kanen Wealth Management since Murnane’s departure. Lazydays rejected a buyout proposal from B. Riley in March. In April, David Kanen of Kanen Wealth Management wrote the board to press for change.
“Lazydays board, you have not done your job thus far in protecting our interests,” Kanen wrote. “You have not been transparent. You have not revealed if you are running a formal strategic alternatives process including if we have investment bankers. Our stock is 20% below the B. Riley bid and you have not laid out the case for remaining independent and how you will increase shareholder value, should a sale not occur.”
DeVincenzi assured shareholders Thursday the Lazydays board was professionally advised as to its governance obligations, its disclosure obligations and its offer evaluation process.
“The ultimate response to the offer was unanimous with all directors building to reject the overture,” DeVincenzi said. “The board and myself personally are appreciative of the commitment and performance of the executive team and all Lazydays partners as we work together every day to move the business forward and make new customers for life.”
The announcements came as Lazydays reported record financial results for the first quarter. The dealership group reported first-quarter revenue totaling $376.2 million, slightly above the preliminary results released in April. The revenue is Lazydays’ highest quarterly total in history, topping the $322.8 million recorded in the second quarter of 2021.
Adjusted earnings totaled $44.8 million, another quarterly record. RV sales totaled 3,748, the second-highest quarterly total in company history to the 4,208 RVs sold in the second quarter of 2021.
