Lazydays Holdings Inc (LAZY, Financial) released its Q3 2023 financial results on November 3, 2023. The company reported a decrease in revenue to $280.7 million from $333.8 million in Q3 2022. The net loss for Q3 2023 was $5.6 million, compared to a net income of $7.7 million in the same period in 2022. The adjusted net loss for Q3 2023 was $2.9 million, compared to a net income of $14.4 million in Q3 2022.
Financial Performance
The company's new vehicle retail revenue decreased by 15.0% to $172.9 million, while pre-owned vehicle retail revenue declined by 17.3% to $75.1 million. The finance and insurance segment saw an 11.4% decrease in revenue to $16.5 million. The service, body and parts, and other segment reported a slight decrease of 1.2% to $14.2 million.
The company's total cost applicable to revenue was $226.2 million, a decrease of 12.4% from Q3 2022. The gross profit margin for new vehicle retail was 10.8%, a decrease from 16.7% in Q3 2022. The pre-owned vehicle retail gross profit margin was 20.5%, down from 22.3% in the same period last year.
Corporate Developments
During the quarter, Lazydays Holdings Inc (LAZY, Financial) acquired Buddy Gregg Motorhomes in Knoxville, Tennessee, and Century RV in Longmont, Colorado. The company also opened a new location in Wilmington, Ohio. These stores are estimated to add $125 million in revenues at steady state.
Balance Sheet Update
The company ended the third quarter with total estimated liquidity of $67.8 million, including cash of $32.9 million, $4.6 million of availability on its revolving credit facility, and $30.2 million available from undrawn floor plan capacity and its floor plan offset account. Additionally, the company holds approximately $95.5 million of unfinanced real estate that could provide an estimated $80.6 million of additional liquidity.
Outlook
Lazydays Holdings Inc (LAZY, Financial) filed a registration statement on Form S-1 with the Securities and Exchange Commission for a rights offering. The offering, made effective by the SEC on October 23, 2023, is expected to generate approximately $99.6 million in net proceeds, which will be used for growth initiatives, acquisitions, new business development activities, and general corporate purposes.
Explore the complete 8-K earnings release (here) from Lazydays Holdings Inc for further details.
