As we reported yesterday, November 18, nationwide RV dealer Lazydays sold seven of its locations to Camping World. The company indicated the sales were to help it regain its financial footing. Today Lazydays released its third quarter 2024 earnings report. Lazydays’ financial woes are big. The company is in a financial whirlpool that threatens real trouble.
Lazydays’ financial woes get a positive spin
In characteristic CEO positive-spin fashion, Ron Fleming, Lazydays’ Interim CEO, introduced the report. “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.” The seven-dealership sell-offs are part of that.
“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,” Fleming continued. “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.”
And then the other shoe dropped.
Show me the money
Total revenue for the third quarter was $213.5 million, down from $280.7 million in the same period of 2023. For the nine months ending September 30, 2024, total revenue was $722.7 million, compared to $884.7 million for the same period in 2023. Put simply, third quarter revenues were down almost 25%. Revenues for the first nine months of operations this year were down more than 18%.
Could things get any worse? The report goes on to read, “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 for the first nine months of this year increased astronomically.
“Industry wide headwinds?” Lazydays has experienced its own Category 5 hurricane. A literal Cat 5 landfall can create “Critical damage to infrastructure like roads, bridges, and dams.” With Lazydays financial woes, how much more can the company take?
RVT1184b
Revision history: Changed statistical conclusion information regarding net loss for further verification. Information here posted is from company release. 11/19/2024 2043 hrs.
There’s some screwy statistical accounting above, when reporting on the increase in nine month losses. $62.1 million is not 3,547% larger than $2.2 million.
Hi, Andy. I sent your note to Russ, in case he didn’t see it here. He responded to you but didn’t attach it to your comment so you may not notice that it’s there (which is why I’m adding this note). He’ll check things in the a.m. (I didn’t have time to recalculate his numbers when I proofed the post this morning.) I’m closing up shop now, since there’s no power here. There’s a “bomb cyclone” going through the area. Lots of folks without power, and I don’t want to use up all my backup power since I may need it to proof news stories as Russ posts them in the a.m. Have a good night.🤗 –Diane
No wind over here in Chelan country. 9″ of snow but we expect that every Turkey Day..And the start of winter.
Fire up the RV and move over here for better weather….(;+)……..Stay safe!
Ha! Thanks, David. My power was only out for 4 hours last night, but there are still about 360,000 others without power in Western Washington, so I’m very lucky. Just got back from my daily walk at the local high school track. Last night we were literally getting blown around the track, or had to lean over and really push hard to walk into the wind. We figured we burned a few extra calories when that happened. Plus there were lots of transformers blowing all around us last night, and in all different colors, lighting up the sky. Very interesting! No wind/rain/power outages up there tonight, i.e., very boring! Just the way I like it! Have a good night.🤗 –Diane
Andy: Rechecking those numbers. Will repost when we have verification. Thanks for the catch. RD
Let me retract my earlier email and stand corrected: I was looking at the adjusted net loss numbers, not the GAAP figures–which, indeed, showed a 3547.83% increase in net loss. Sorry!
Either way you look at it; things are going South Just how far and fast is what the question is.
Lazydays stock price closed at $1.02 the other day, even after the sale was announced, down from $20, at the beginning of 2022. Their massive acquisition spree loaded them with debt. They even closed their highly-regarded campground in Seffner, FL in 2023.
Four years ago they had a great service department but now they’re just another Camping World clone but without the cash. I wonder how much their normally massive display at the Tampa RV Supershow in January will be cut back.
There was a boom, now there’s a bust, as in after every boom. Any oil man could have told you not to take on massive new debt during a boom.
So Lazydays was not only too stupid to see that, they are apparently a little late to react. When your business model is ‘act big, talk big, and fawn over the big spenders’, it’s hard to keep your feet on the ground.
Thank you, Russ and Tina! Looks like their numerous acquisitions of a few years ago were a few “bridges too far” for Lazy Days. And now we can see why, as the losses mount. Have a great day and safe travels!