After postponing its first-quarter financial report for six days, Lazydays RV executives said the company suffered larger than expected losses.
Company CEO John North said the RV dealer chain lost $22 million in the first quarter of 2024, a 723% increase from a $300,000 loss in the first quarter of 2023.
First-quarter 2024 revenue totaled $270.6 million, down 8.5% from the first quarter of 2023.
North said Lazydays’ expectations of increased sales in March and April “did not materialize as we hoped.”
“We have continued to focus on maintaining our healthy inventory position as model year 2025 units arrive,” he said, “while increasing our efforts to procure more used units to augment our trade-ins and drive additional revenue opportunities.”
As of May 15, North said 90% of Lazydays’ new RV inventory is model year 2024 and 2025 RVs.
“While we are navigating the current economic environment alongside our OEM partners and competing dealers,” North said, “we strongly believe in the earnings power of our store base and look forward to unlocking its full earnings potential as the industry recovers.”
Lazydays also announced raising $15 million to facilitate an amendment to the company’s syndicated credit facility. To raise the funds, Lazydays issued Coliseum Capital Management warrants to buy 2 million shares of common stock at $5.25 a share, subject to certain adjustments.
The agreement will free $10 million for general corporate purposes. The company reported $39 million cash on hand as of May 15, including the additional Coliseum funding. Lazydays can also access an estimated $45 million in mortgage loan proceeds from refinancing store locations the company owns.
Chief Financial Officer Kelly Porter said, “We believe we have a strong foundation on which to navigate the current macroeconomic environment.”
