LAZYDAYS REPORTS THIRD QUARTER 2024 RESULTS

TAMPA, Fla., Nov. 18, 2024 /PRNewswire/ -- Lazydays Holdings, Inc. (Nasdaq: GORV) today announced its third quarter 2024 earnings results.

Ron Fleming, Interim CEO, said, "Despite challenging financial results during the third quarter, which continued to be impacted by economic and other industry-wide demand headwinds, we are very encouraged by the completion of last week's recapitalization transactions. These transformative transactions have fortified the Company's financial foundation and operational focus and mark a turning point for Lazydays as we position ourselves for a stronger, more agile future. With a streamlined balance sheet, enhanced liquidity, and a simplified dealership network, we are better equipped to navigate the evolving RV landscape and deliver on our commitment to industry leadership."

Total revenue for the third quarter was $213.5 million compared to $280.7 million for the same period in 2023. Total revenue for the nine months ended September 30, 2024 was $722.7 million compared to $884.7 million for the same period in 2023.

Net loss for the third quarter was $17.7 million compared to net loss of $5.6 million for the same period in 2023. Adjusted net loss, a non-GAAP measure, was $16.2 million compared to adjusted net loss of $2.9 million for the same period in 2023. Net loss per diluted share was $1.37 compared to net loss per diluted share of $0.48 for the same period in 2023. Adjusted net loss per diluted share, a non-GAAP measure, was $1.27 compared to adjusted net loss per diluted share of $0.29 for the same period in 2023.

Net loss for the nine months ended September 30, 2024 was $83.9 million compared to net loss of $2.3 million for the same period in 2023. Adjusted net loss, a non-GAAP measure, was $62.1 million compared to adjusted net income of $2.2 million for the same period in 2023. Net loss per diluted share was $6.24 compared to net loss per diluted share of $0.49 for the same period in 2023. Adjusted net loss per diluted share, a non-GAAP measure, was $4.73 compared to adjusted net loss per diluted share of $0.07 for the same period in 2023.

See Reconciliation of Non-GAAP Measures for additional details regarding our adjusted results of operations.

Conference Call Information
We have scheduled a conference call at 8:30 AM Eastern Time on Tuesday, November 19, 2024 that will also be broadcast live over the internet.

The conference call may be accessed by telephone at (877) 407-8029 / +1 (201) 689-8029. To listen live on our website or for replay, visit https://www.lazydays.com/investor-relations.

About Lazydays
Lazydays has been a prominent player in the RV industry since our inception in 1976, earning a stellar reputation for delivering exceptional RV sales, service, and ownership experiences. Our commitment to excellence has led to enduring relationships with RVers and their families who rely on us for all of their RV needs.

Our wide selection of RV brands from top manufacturers, state-of-the-art service facilities, and an extensive range of accessories and parts ensure that Lazydays is the go-to destination for RV enthusiasts seeking everything they need for their journeys on the road. Whether you're a seasoned RVer or just starting your adventure, our dedicated team is here to provide outstanding support and guidance, making your RV lifestyle truly extraordinary.

Lazydays is a publicly listed company on the Nasdaq stock exchange under the ticker "GORV."

Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward looking statements include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future financing transactions and business strategy, and often contain words such as "project," "outlook," "expect," "anticipate," "intend," "plan," "believe," "estimate," "may," "seek," "would," "should," "likely," "goal," "strategy," "future," "maintain," "continue," "remain," "target" or "will" and similar references to future periods.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events that depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements in this press release. The risks and uncertainties that could cause actual results to differ materially from estimated or projected results include, without limitation, future economic and financial conditions (both nationally and locally), changes in customer demand, our relationship with, and the financial and operational stability of, vehicle manufacturers and other suppliers, risks associated with our indebtedness (including our ability to obtain further waivers or amendments to credit agreements, the actions or inactions of our lenders, available borrowing capacity, our compliance with financial covenants and our ability to refinance or repay indebtedness on terms acceptable to us), acts of God or other incidents which may adversely impact our operations and financial performance, government regulations, legislation and others set forth throughout under the headers "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" and in the notes to our financial statements, in our most recent Quarterly Report on Form 10-Q, Annual Report on Form 10-Kand from time to time in our other filings with the SEC. We urge you to carefully consider this information and not place undue reliance on forward-looking statements. We undertake no duty to update our forward-looking statements, including our earnings outlook, which are made as of the date of this release.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures such as adjusted cash flow from operations, adjusted costs applicable to revenue, adjusted net income (loss), adjusted net income (loss) per diluted share, adjusted income (loss) before income taxes, adjusted SG&A, and adjusted income (loss) from operations. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not comparable to similarly titled measures used by other companies. As a result, we review any non-GAAP financial measures in connection with a review of the most directly comparable measures calculated in accordance with GAAP. We caution you not to place undue reliance on such non-GAAP measures, and also to consider them with the most directly comparable GAAP measures. We present cash flows from operations in the following tables, adjusted to include the change in non-trade floor plan debt to improve the visibility of cash flows related to vehicle financing. As required by SEC rules, we have reconciled these measures to the most directly comparable GAAP measures in the attachments to this release. We believe the non-GAAP financial measures we present improve the transparency of our disclosures; provide a meaningful presentation of our results from core business operations, because they exclude items not related to core business operations and other non-cash items; and improve the period-to-period comparability of our results from core business operations. These presentations should not be considered an alternative to GAAP measures.

Contact:
investors@lazydays.com


            
              Results of Operations


                                                                                                                   Three Months Ended September 30,            Variance



            
              
                
                  (In thousands except share and per share amounts)       2024       2023
                                                                                                                         %



            
              
                Revenues



            New vehicle retail                                                                         $122,291   $172,898                           (29.3) %



            Pre-owned vehicle retail                                                                     60,177     75,059                           (19.8) %



            Vehicle wholesale                                                                             1,801      2,056                           (12.4) %



            Finance and insurance                                                                        16,333     16,462                            (0.8) %



            Service, body and parts and other                                                            12,863     14,207                            (9.5) %



            Total revenues                                                                              213,465    280,682                           (23.9) %



            
              
                Cost applicable to revenues



            New vehicle retail                                                                          111,032    154,181                           (28.0) %



            Pre-owned vehicle retail                                                                     49,220     59,693                           (17.5) %



            Vehicle wholesale                                                                             1,964      2,026                            (3.1) %



            Finance and insurance                                                                           544        569                            (4.4) %



            Service, body and parts and other                                                             5,742      7,109                           (19.2) %



            LIFO                                                                                          (350)     2,663                          (113.1) %



            Total cost applicable to revenues                                                           168,152    226,241                           (25.7) %



            Gross profit                                                                                 45,313     54,441                           (16.8) %



            Depreciation and amortization                                                                 5,170      4,602                             12.3 %



            Selling, general, and administrative expenses                                                45,802     48,250                            (5.1) %



            (Loss) income from operations                                                               (5,659)     1,589             NM



            Other income (expense):



            Floor plan interest expense                                                                 (6,361)   (6,258)                             1.6 %



            Other interest expense                                                                      (5,564)   (2,701)                           106.0 %



            Change in fair value of warrant liabilities                                                   (462)                      NM



            (Loss) gain on sale of property and equipment                                                     -      (21)            NM



            Total other expense, net                                                                   (12,387)   (8,980)                            37.9 %



            
              
                Loss before income taxes                                           (18,046)   (7,391)            NM



            Income tax benefit (expense)                                                                    381      1,805                           (78.9) %



            
              
                Net loss                                                           (17,665)   (5,586)            NM



            Dividends on Series A Convertible Preferred Stock                                           (2,159)   (1,210)                            78.4 %



            
              
                Net loss and comprehensive loss attributable to common            $(19,824)  $(6,796)            NM
    stock and participating securities





            
              
                Loss per share:



            Basic                                                                                       $(1.37)   $(0.48)            NM



            Diluted                                                                                     $(1.37)   $(0.48)            NM



            Weighted average shares used for EPS calculations:



            Basic                                                                                    14,439,861 14,263,367



            Diluted                                                                                  14,439,861 14,263,367





            *NM - not meaningful

                                                                                                                                 Nine Months Ended September 30,           Variance



              
                
                  
                    (In thousands except share and per share amounts)       2024       2023
                                                                                                                                 %



              
                
                  Revenues



              New vehicle retail                                                                               $418,315   $532,397                               (21.4) %



              Pre-owned vehicle retail                                                                          200,661    250,825                               (20.0) %



              Vehicle wholesale                                                                                  11,318      5,480                                106.5 %



              Finance and insurance                                                                              50,703     51,085                                (0.7) %



              Service, body and parts and other                                                                  41,748     44,931                                (7.1) %



              Total revenues                                                                                    722,745    884,718                               (18.3) %



              
                
                  Cost applicable to revenues



              New vehicle retail                                                                                388,225    465,656                               (16.6) %



              Pre-owned vehicle retail                                                                          168,865    199,646                               (15.4) %



              Vehicle wholesale                                                                                  14,021      5,432                                158.1 %



              Finance and insurance                                                                               1,881      2,072                                (9.2) %



              Service, body and parts and other                                                                  19,179     21,807                               (12.1) %



              LIFO                                                                                                   91      4,049                               (97.8) %



              Total cost applicable to revenues                                                                 592,262    698,662                               (15.2) %



              Gross profit                                                                                      130,483    186,056                               (29.9) %



              Depreciation and amortization                                                                      15,587     13,464                                 15.8 %



              Selling, general, and administrative expenses                                                     146,698    152,262                                (3.7) %



              (Loss) income from operations                                                                    (31,802)    20,330                                     NM



              Other income (expense):



              Floor plan interest expense                                                                      (19,745)  (17,624)                                12.0 %



              Other interest expense                                                                           (15,924)   (6,484)                               145.6 %



              Change in fair value of warrant liabilities                                                         (799)       856                                     NM



              (Loss) gain on sale of property and equipment                                                       1,044       (21)                                    NM



              Total other expense, net                                                                         (35,424)  (23,273)                                52.2 %



              
                
                  Loss before income taxes                                             (67,226)   (2,943)                                    NM



              Income tax benefit (expense)                                                                     (16,640)       642                                     NM



              
                
                  Net loss                                                             (83,866)   (2,301)                                    NM



              Dividends on Series A Convertible Preferred Stock                                                 (6,174)   (3,590)                                72.0 %



              
                
                  Net loss and comprehensive loss attributable to common              $(90,040)  $(5,891)                                    NM
    stock and participating securities





              
                
                  Loss per share:



              Basic                                                                                             $(6.24)   $(0.44)                                    NM



              Diluted                                                                                           $(6.24)   $(0.49)                                    NM



              Weighted average shares used for EPS calculations:



              Basic                                                                                          14,418,692 13,470,219



              Diluted                                                                                        14,418,692 13,470,219





              *NM - not meaningful


     
                Total Results Summary


                                                                                                         Three Months Ended September
                                                                                                          30,                            Variance


                                                                                           2024     2023



     
                
                  Gross profit margins



     New vehicle retail                                                                  9.2 %  10.8 %          (160)              bps



     Pre-owned vehicle retail                                                           18.2 %  20.5 %          (230)              bps



     Vehicle wholesale                                                                 (9.1) %   1.5 %             NM



     Finance and insurance                                                              96.7 %  96.5 %             20               bps



     Service, body and parts and other                                                  55.4 %  50.0 %            540               bps



     Total gross profit margin                                                          21.2 %  19.4 %            180               bps



     Total gross profit margin (excluding LIFO)                                         21.1 %  20.3 %             80               bps





     
                
                  Retail units sold



     New vehicle retail                                                                  1,666    2,046        (18.6) %



     Pre-owned vehicle retail                                                            1,084    1,162         (6.7) %



     Total retail units sold                                                             2,750    3,208        (14.3) %





     
                
                  Average selling price per retail unit



     New vehicle retail                                                                $73,404  $84,505        (13.1) %



     Pre-owned vehicle retail                                                           55,514   64,595        (14.1) %





     
                
                  Average gross profit per retail unit (excluding LIFO)



     New vehicle retail                                                                 $6,758   $9,148        (26.1) %



     Pre-owned vehicle retail                                                           10,108   13,224        (23.6) %



     Finance and insurance                                                               5,741    4,954          15.9 %





     
                
                  Revenue mix



     New vehicle retail                                                                 57.3 %  61.6 %



     Pre-owned vehicle retail                                                           28.2 %  26.7 %



     Vehicle wholesale                                                                   0.8 %   0.7 %



     Finance and insurance                                                               7.7 %   5.9 %



     Service, body and parts and other                                                   6.0 %   5.1 %


                                                                                        100.0 % 100.0 %





     
                
                  Gross profit mix



     New vehicle retail                                                                 24.8 %  34.4 %



     Pre-owned vehicle retail                                                           24.2 %  28.2 %



     Vehicle wholesale                                                                 (0.4) %   0.1 %



     Finance and insurance                                                              34.8 %  29.2 %



     Service, body and parts and other                                                  15.7 %  13.0 %



     LIFO                                                                                0.9 % (4.9) %


                                                                                        100.0 % 100.0 %





     *NM - not meaningful

                                                                                                          Nine Months Ended September 30, Variance


                                                                                            2024     2023



     
                
                  Gross profit margins



     New vehicle retail                                                                   7.2 %  12.5 %          (530)              bps



     Pre-owned vehicle retail                                                            15.8 %  20.4 %          (460)              bps



     Vehicle wholesale                                                                 (23.9) %   0.9 %             NM



     Finance and insurance                                                               96.3 %  95.9 %             40               bps



     Service, body and parts and other                                                   54.1 %  51.5 %            260               bps



     Total gross profit margin                                                           18.1 %  21.0 %          (290)              bps



     Total gross profit margin (excluding LIFO)                                          18.1 %  21.5 %          (340)              bps





     
                
                  Retail units sold



     New vehicle retail                                                                   5,742    6,005         (4.4) %



     Pre-owned vehicle retail                                                             3,692    3,854         (4.2) %



     Total retail units sold                                                              9,434    9,859         (4.3) %





     
                
                  Average selling price per retail unit



     New vehicle retail                                                                 $72,852  $88,659        (17.8) %



     Pre-owned vehicle retail                                                            54,350   65,082        (16.5) %





     
                
                  Average gross profit per retail unit (excluding LIFO)



     New vehicle retail                                                                  $5,240  $11,114        (52.9) %



     Pre-owned vehicle retail                                                             8,612   13,279        (35.1) %



     Finance and insurance                                                                5,175    4,972           4.1 %





     
                
                  Revenue mix



     New vehicle retail                                                                  57.9 %  60.2 %



     Pre-owned vehicle retail                                                            27.8 %  28.4 %



     Vehicle wholesale                                                                    1.6 %   0.6 %



     Finance and insurance                                                                7.0 %   5.8 %



     Service, body and parts and other                                                    5.7 %   5.0 %


                                                                                         100.0 % 100.0 %





     
                
                  Gross profit mix



     New vehicle retail                                                                  23.1 %  35.9 %



     Pre-owned vehicle retail                                                            24.4 %  27.5 %



     Vehicle wholesale                                                                  (2.1) %     - %



     Finance and insurance                                                               37.4 %  26.3 %



     Service, body and parts and other                                                   17.3 %  12.4 %



     LIFO                                                                               (0.1) % (2.1) %


                                                                                         100.0 % 100.0 %





     *NM - not meaningful


              
                Other Metrics


                                                                                                  Adjusted                         As Reported


                                                                                                  Three Months Ended                         Three Months Ended
                                                                                       September 30,                 September 30,


                                                                         2024     2023          2024            2023



              SG&A as a % of revenue                                  20.8 %  16.7 %       21.5 %         17.2 %



              SG&A as % of gross profit, excluding LIFO               98.8 %  82.1 %      101.9 %         84.5 %



              (Loss) income from operations as a % of revenue        (2.2) %   2.0 %      (2.7) %          0.6 %



              (Loss) income from operations as a % of gross profit, (10.3) %   9.8 %     (12.6) %          2.8 %
    excluding LIFO



              (Loss) income before income taxes as % of revenue      (7.7) % (1.2) %      (8.5) %        (2.6) %



              Net (loss) income as a % of revenue                    (7.6) % (1.0) %      (8.3) %        (2.0) %

                                                                                                 Adjusted                        As Reported


                                                                                                 Nine Months Ended                        Nine Months Ended
                                                                                      September 30,                September 30,


                                                                         2024    2023         2024            2023



              SG&A as a % of revenue                                  19.8 % 16.8 %      20.3 %         17.2 %



              SG&A as % of gross profit, excluding LIFO              109.6 % 78.3 %     112.3 %         80.1 %



              (Loss) income from operations as a % of revenue        (3.9) %  3.1 %     (4.4) %          2.3 %



              (Loss) income from operations as a % of gross profit, (21.5) % 14.6 %    (24.4) %         10.7 %
    excluding LIFO



              (Loss) income before income taxes as % of revenue      (8.7) %  0.4 %     (9.3) %        (0.3) %



              Net (loss) income as a % of revenue                    (8.6) %  0.3 %    (11.6) %        (0.3) %


     
                Other Highlights


                                                                                                                     September 30, 2024 December 31, 2023



     
                
                  Store Count



     Dealerships                                                                                                                    23                 24





     
                
                  Days Supply*



     New vehicle inventory                                                                                                         235                380



     Pre-owned vehicle inventory                                                                                                    76                132



     *Days supply calculated based on current inventory levels and a 90-day historical average cost of sales level.


     
                Same-Store Results Summary


                                                                                                              Three Months Ended September 30,   Variance


                                                   ($ in thousands, except per vehicle data)     2024     2023



     
                
                  Revenues



     New vehicle retail                                                                     $105,432 $163,622          (35.6) %



     Pre-owned vehicle retail                                                                 52,166   70,236          (25.7) %



     Vehicle wholesale                                                                         1,340    2,055          (34.8) %



     Finance and insurance                                                                    14,127   15,552           (9.2) %



     Service, body and parts and other                                                        11,279   12,841          (12.2) %



     Total revenues                                                                         $184,344 $264,306          (30.3) %





     
                
                  Gross profit



     New vehicle retail                                                                       $9,385  $17,208          (45.5) %



     Pre-owned vehicle retail                                                                  9,334   14,435          (35.3) %



     Vehicle wholesale                                                                            49       31            58.1 %



     Finance and insurance                                                                    13,655   15,017           (9.1) %



     Service, body and parts and other                                                         6,166    6,662           (7.4) %



     LIFO                                                                                        350  (2,663)        (113.1) %



     Total gross profit                                                                      $38,939  $50,690          (23.2) %





     
                
                  Gross profit margins



     New vehicle retail                                                                        8.9 %  10.5 %            (160)              bps



     Pre-owned vehicle retail                                                                 17.9 %  20.6 %            (270)              bps



     Vehicle wholesale                                                                         3.7 %   1.5 %              220               bps



     Finance and insurance                                                                    96.7 %  96.6 %               10               bps



     Service, body and parts and other                                                        54.7 %  51.9 %              280               bps



     Total gross profit margin                                                                21.1 %  19.2 %              190               bps



     Total gross profit margin (excluding LIFO)                                               20.9 %  20.2 %               70               bps





     
                
                  Retail units sold



     New vehicle retail                                                                        1,365    1,865          (26.8) %



     Pre-owned vehicle retail                                                                    913    1,071          (14.8) %



     Total retail units sold                                                                   2,278    2,936          (22.4) %





     
                
                  Average selling price per retail unit



     New vehicle retail                                                                      $77,240  $87,733          (12.0) %



     Pre-owned vehicle retail                                                                 57,137   65,580          (12.9) %





     
                
                  Average gross profit per retail unit (excluding LIFO)



     New vehicle retail                                                                       $6,875   $9,227          (25.5) %



     Pre-owned vehicle retail                                                                 10,223   13,478          (24.2) %



     Finance and insurance                                                                     5,994    5,115            17.2 %



     *NM - not meaningful

                                                                                                            Nine Months Ended September 30,               Variance


                                                   (In thousands, except per vehicle data)     2024     2023



     
                
                  Revenues



     New vehicle retail                                                                   $354,704 $504,127                                  (30) %



     Pre-owned vehicle retail                                                              166,013  232,452                                  (29) %



     Vehicle wholesale                                                                       8,861    5,222                                    70 %



     Finance and insurance                                                                  42,357   48,330                                  (12) %



     Service, body and parts and other                                                      34,737   39,852                                  (13) %



     Total revenues                                                                       $606,672 $829,983                                  (27) %





     
                
                  Gross profit



     New vehicle retail                                                                    $24,666  $62,636                                  (61) %



     Pre-owned vehicle retail                                                               25,986   47,682                                  (46) %



     Vehicle wholesale                                                                     (1,438)      44                    NM



     Finance and insurance                                                                  40,728   46,354                                  (12) %



     Service, body and parts and other                                                      18,637   20,075                                   (7) %



     LIFO                                                                                     (91) (4,049)                                 (98) %



     Total gross profit                                                                   $108,488 $172,742                                  (37) %





     
                
                  Gross profit margins



     New vehicle retail                                                                      7.0 %  12.4 %                                  (540)   bps



     Pre-owned vehicle retail                                                               15.7 %  20.5 %                                  (480)   bps



     Vehicle wholesale                                                                    (16.2) %   0.8 %                   NM



     Finance and insurance                                                                  96.2 %  95.9 %                                     30    bps



     Service, body and parts and other                                                      53.7 %  50.4 %                                    330    bps



     Total gross profit margin                                                              17.9 %  20.8 %                                  (290)   bps



     Total gross profit margin (excluding LIFO)                                             17.9 %  21.3 %                                  (340)   bps





     
                
                  Retail units sold



     New vehicle retail                                                                      4,511    5,543                                  (19) %



     Pre-owned vehicle retail                                                                2,950    3,534                                  (17) %



     Total retail units sold                                                                 7,461    9,077                                  (18) %





     
                
                  Average selling price per retail unit



     New vehicle retail                                                                    $78,631  $90,948                                  (14) %



     Pre-owned vehicle retail                                                               56,276   65,776                                  (14) %





     
                
                  Average gross profit per retail unit (excluding LIFO)



     New vehicle retail                                                                     $5,468  $11,300                                  (52) %



     Pre-owned vehicle retail                                                                8,809   13,492                                  (35) %



     Finance and insurance                                                                   5,459    5,107                                     7 %



     *NM - not meaningful


     
                
                  Condensed
                   Consolidated 
        Balance Sheets



     
                
                  
                    (In thousands)                           September 30, 2024 December 31, 2023



     
                
                  Current assets



     Cash                                                                                             $13,536            $58,085



     Receivables, net of allowance for doubtful accounts                                               23,642             22,694



     Inventories                                                                                      310,671            456,087



     Income tax receivable                                                                              7,254              7,416



     Prepaid expenses and other                                                                         3,467              2,614



     
                
                  Total current assets                                                 358,570            546,896





     
                
                  Long-term assets



     Property and equipment, net                                                                      273,733            265,726



     Operating lease assets                                                                            25,571             26,377



     Intangible assets, net                                                                            74,442             80,546



     Other assets                                                                                       3,630              2,750



     Deferred income tax asset                                                                                           15,444



     
                
                  Total assets                                                        $735,946           $937,739





     
                
                  Current liabilities



     Floor plan notes payable                                                                        $316,551           $446,783



     Revolving line of credit, current portion                                                         17,500



     Other current liabilities                                                                         57,967             53,194



     
                
                  Total current liabilities                                            392,018            499,977





     
                
                  Long-term liabilities



     Financing liability, non-current portion, net                                                     90,540             91,401



     Revolving line of credit, non-current portion                                                     23,500             49,500



     Long-term debt, non-current portion, net                                                          27,590             28,075



     Related party debt, non-current portion, net                                                      43,152             33,354



     Warrant liabilities                                                                                5,706



     Other long-term liabilities                                                                       22,512             22,242



     
                
                  Total liabilities                                                    605,018            724,549





     Series A Convertible Preferred Stock                                                              62,363             56,193



     Stockholders' Equity                                                                              68,565            156,997



     
                
                  Total liabilities and stockholders' equity                          $735,946           $937,739


              
                Condensed Consolidated Statements of Cash Flows


                                                                                                                        Nine Months Ended September 30,



              
                
                  
                    (In thousands)                                   2024      2023



              
                
                  Operating Activities



              Net loss                                                                                 $(83,866) $(2,301)



              Adjustments to reconcile net loss to net cash provided by operating
    activities:



              Stock-based compensation                                                                     1,495     2,067



              Bad debt expense                                                                                46         9



              Depreciation and amortization of property and equipment                                      9,481     7,992



              Amortization of intangible assets                                                            6,106     5,501



              Amortization of debt discount                                                                1,508       327



              Non-cash operating lease (benefit) expense                                                   (497)      201



              (Gain) loss on sale of property and equipment                                              (1,044)       21



              Deferred income taxes                                                                       16,700     (116)



              Change in fair value of warrant liabilities                                                    799     (856)



              Impairment charges                                                                                      629



              Changes in operating assets and liabilities:



              Receivables                                                                                  (994)    3,221



              Inventories                                                                                145,416    18,427



              Prepaid expenses and other                                                                   (853)  (1,196)



              Income tax receivable/payable                                                                  165     (621)



              Other assets                                                                                 (882)    (169)



              Accounts payable                                                                           (1,601)    5,511



              Accrued expenses and other current liabilities                                               6,588     1,787



              
                
                  Total adjustments                                              182,433    42,735



              
                
                  Net cash provided by operating activities                      $98,567   $40,434




                                                                                                                        Nine Months Ended September 30,



              
                
                  
                    (In thousands)                                   2024      2023



              
                
                  Net cash provided by operating activities, as reported         $98,567   $40,434



              Net repayments on floor plan notes payable                                               (129,169) (13,967)



              Minus borrowings on floor plan notes payable associated with acquired new                          (19,726)
    inventory



              
                
                  Adjusted net cash (used in) provided by operating activities $(30,602)   $6,741


              
                Reconciliation of Non-GAAP Measures


                                                                                                       
     
     
     Three Months Ended September 30, 2024



              
                
                  
                    ($ in thousands, except per share amounts)       As reported                             Loss on   LIFO             Transaction                   Severance                 Deferred tax     Adjusted
                                                                                                                            change in                                 costs                    and
                                                                                                                            fair                                                               transition                 valuation
                                                                                                                           value of                                                           costs                       allowance
                                                                                                                           warrant
                                                                                                                           liabilities



              Costs applicable to revenue                                                                      $168,152                      
        $        -   $350        
     $             -             
     $           -           
     $              -     $168,502



              Selling, general and administrative expenses                                                       45,802                                                             (1,296)                       (100)                                    44,406



              (Loss) income from operations                                                                     (5,659)                                      (350)                   1,296                          100                                    (4,613)



              Change in fair value of warrant liabilities                                                         (462)                                 462



              (Loss) income before income taxes                                                                (18,046)                                 462   (350)                   1,296                          100                                   (16,538)



              Income tax (expense) benefit                                                                          381                                    2     (1)                       5                                                         1           388



              Net (loss) income                                                                                (17,665)                                 464   (351)                   1,301                          100                             1      (16,150)



              Dividends on Series A Convertible Preferred Stock                                                 (2,159)                                                                                                                                  (2,159)



              Net (loss) income and comprehensive (loss) income                                               $(19,824)                                $464  $(351)                  $1,301                         $100                            $1     $(18,309)
    attributable to common stock and participating securities





              Diluted loss per share                                                                            $(1.37)                                                                                                                                  $(1.27)



              Shares used for diluted calculation                                                            14,439,861                                                                                                                                14,439,861

                                                                                                       
     
     
     Three Months Ended September 30, 2023



              
                
                  
                    ($ in thousands, except per share amounts)       As reported                              LIFO      Transaction costs                      Severance and     Adjusted
                                                                                                                                                                                    transition costs



              Costs applicable to revenue                                                                      $226,241                           $(2,663) 
     $                  -                 
     $              -     $223,578



              Selling, general and administrative expenses                                                       48,250                                                     (727)                              (625)       46,898



              Income from operations                                                                              1,589                              2,663                     727                                 625         5,604



              (Loss) income before income taxes                                                                 (7,391)                             2,663                     727                                 625       (3,376)



              Income tax benefit (expense)                                                                        1,805                              (873)                  (238)                              (205)          489



              Net (loss) income                                                                                 (5,586)                             1,790                     489                                 420       (2,887)



              Dividends on Series A Convertible Preferred Stock                                                 (1,210)                                                                                                  (1,210)



              Net (loss) income and comprehensive (loss) income                                                $(6,796)                            $1,790                    $489                                $420      $(4,097)
    attributable to common stock and participating securities





              Diluted loss per share                                                                            $(0.48)                                                                                                  $(0.29)



              Shares used for diluted calculation                                                            14,263,367                                                                                                14,263,367

                                                                                                       
     
     
     Nine Months Ended September 30, 2024



              
                
                  
                    ($ in thousands, except per share amounts)       As reported                             Loss on  LIFO            Transaction                  Severance                 Deferred            Uninsured       Adjusted
                                                                                                                           change in                                costs                   and                        tax                      loss
                                                                                                                            fair value
                                                                                                                            of                                                              transition                 valuation
                                                                                                                           warrant                                                          costs                      allowance
                                                                                                                           liabilities



              Costs applicable to revenue                                                                      $592,262                         
     $        - $(91)       
     $            -             
     $          -            
     $         -       
     $          -       $592,171



              Selling, general and administrative expenses                                                      146,698                                                           (2,925)                      (199)                                         (481)        143,093



              (Loss) income from operations                                                                    (31,802)                                        91                   2,925                         199                                            481        (28,106)



              Change in fair value of warrant liabilities                                                         (799)                                 799



              (Loss) income before income taxes                                                                (67,226)                                 799     91                   2,925                         199                                            481        (62,731)



              Income tax (expense) benefit                                                                     (16,640)                                   5      1                      20                           1                    17,262                     3             652



              Net (loss) income                                                                                (83,866)                                 804     92                   2,945                         200                    17,262                   484        (62,079)



              Dividends on Series A Convertible Preferred Stock                                                 (6,174)                                                                                                                                                  (6,174)



              Net (loss) income and comprehensive (loss) income                                               $(90,040)                                $804    $92                  $2,945                        $200                   $17,262                  $484       $(68,253)
    attributable to common stock and participating securities





              Diluted loss per share                                                                            $(6.24)                                                                                                                                                  $(4.73)



              Shares used for diluted calculation                                                            14,418,692                                                                                                                                                14,418,692

                                                                                                       
     
     
     Nine Months Ended September 30, 2023



              
                
                  
                    ($ in thousands, except per share amounts)       As reported                             Gain on     LIFO            Transaction                  Severance              Impairment            Uninsured       Adjusted
                                                                                                                           change in                                   costs                   and                        charge                  loss
                                                                                                                           fair value of                                                       transition
                                                                                                                            warrant
                                                                                                                            liabilities                                                        costs



              Costs applicable to revenue                                                                      $698,662                         
     $        - $(4,049)       
     $            -             
     $          -         
     $           -       
     $          -       $694,613



              Selling, general and administrative expenses                                                      152,262                                                              (1,198)                    (1,278)                   (629)                (300)        148,857



              Income from operations                                                                             20,330                                         4,049                   1,198                       1,278                      629                   300          27,784



              Gain on change in fair value of warrant liabilities                                                   856                                (856)



              (Loss) income before income taxes                                                                 (2,943)                               (856)    4,049                   1,198                       1,278                      629                   300           3,655



              Income tax benefit (expense)                                                                          642                                       (1,140)                  (337)                      (360)                   (119)                (106)        (1,420)



              Net (loss) income                                                                                 (2,301)                               (856)    2,909                     861                         918                      510                   194           2,235



              Dividends on Series A Convertible Preferred Stock                                                 (3,590)                                                                                                                                                    (3,590)



              Net (loss) income and comprehensive (loss) income                                                $(5,891)                              $(856)   $2,909                    $861                        $918                     $510                  $194        $(1,355)
    attributable to common stock and participating securities





              Diluted loss per share                                                                            $(0.49)                                                                                                                                                    $(0.07)



              Shares used for diluted calculation                                                            13,470,219                                                                                                                                                  13,470,219

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SOURCE Lazydays RV