TAMPA, Fla., Aug. 15, 2024 — RV dealer Lazydays reported results today for the second quarter ended June 30, 2024. It’s not a rosy picture. Here, from a press release, are the highlights of the report.
Total revenue for the second quarter was $238.7 million compared to $308.4 million for the same period in 2023. Total revenue for the six months ended June 30, 2024 was $509.3 million compared to $604.0 million for the same period in 2023.
Net loss for the second quarter was $44.2 million compared to net income of $3.6 million for the same period in 2023. Adjusted net loss, a non-GAAP [generally accepted accounting principles] measure, was $18.4 million compared to adjusted net income of $3.9 million for the same period in 2023.
Net loss for the six months ended June 30, 2024, was $66.2 million compared to net income of $3.3 million for the same period in 2023. Adjusted net loss, a non-GAAP measure, was $46.5 million compared to adjusted net income of $5.1 million for the same period in 2023.
John North, Chief Executive Officer, explained, “Our team has focused on maintaining healthy vehicle inventory, improving F&I [finance and insurance] per unit and achieving substantial total gross margin improvement sequentially. However, the seasonal improvement in sales volume we had anticipated to occur in the second quarter did not materialize.
“On a same-store basis, we saw a decline in both new and used unit volume relative to the first quarter, partially offset by significantly improved gross profit per unit sold reflecting the benefits of the inventory actions we took earlier this year. Our same store F&I was over $5,300 per unit, up 6.9%, despite average selling prices being lower by approximately 17% on a blended basis.
“We have continued to focus on maintaining our healthy inventory position while increasing our efforts to procure more used units directly from consumers as trade-ins on vehicle sales have been off approximately 50% compared to our historical averages. As of today, our new inventory is comprised of 26% model year 2025 units and 69% model year 2024 units, with less than 140 2023 units remaining. Also of note, over 75% of our inventory is towable product, up from 70% at the same time last year.”
Commenting on operational changes since the end of the second quarter, North said, “Given the current unit sales volume, we have implemented further cost reduction actions in August that should be substantially complete by the end of September.
“We anticipate these decisions will save approximately $25 million annually. We have also closed our Waller, Texas, dealership, and consolidated our retail operations from two locations to one in the Surprise, Arizona, market.”
Lazydays operates more than 20 RV dealerships across the United States.
##RVT1170b
These RV dealerships that are now crying the blues about losses can choke on their inventories as far as I am concerned. They, and the manufacturers, inflated their prices during Covid and raked in the big bucks at the consumers expense. So many people bought instead of waiting for the market to normalize.
I’m certainly not shedding a tear over the dealer’s losses.
90% agreement here!!! 👍 It is a “Reap what you sow” deal, and they are.
My other 10% is reserved for the high demand and low supply in a Free Market during Covid, and now, post covid, demand is very very low. Perhaps it all re-settles in another 4 or 5 years and a normal market is once again normal for both quality and profit margins.
They didn’t wanna straighten anything out to better help their employees managing customers better. It was horrible and sorry you had to deal with it. It was just as horrible working for them. Good riddance to that place.
Yet they dropped you?
I toughed it out for four years just trying To hit it head on and learn, but it was more chaotic and twisted. I think it was a little more chaotic than it should have been, and when I started speaking up management didn’t like it. New technicians have to work flat rate and it’s really just not sensible at all when you’re learning. They lose a lot of employees because of it. I’m actually thankful they pushed me out because I would still be miserable today if I were still there sadly.
Very interesting. Any word on how many layoffs are expected to follow on a $44 million loss which is actually a $48 million dollar swing from profitability in the second quarter Y/Y. That’s a 20% loss on gross revenue which coincidentally is about the same as the total aggregate inflation for the past 40 months. Maybe rates for RV loans between 9%-17% is having an impact on sales? Are people having to choose between feeding the family or RVing with the family? Maybe the rich should be forced to just buy everyone an RV and prop up the industry.
That’s all I’ve got, for now. 🙃
I was dropped in April but sounds like they just dropped 10 more and Ramsey. Good they are dirty employers!!!
If your looking, good luck on a new job with a better employer. 👍😀
Very sorry, Jennifer. 🙁 Good luck in your job search! 🙂
“Lazy”days kind of sums it up. From experience, I’d never buy an RV from them nor would I ever take my RV into their business for repair. Not surprising they are declining…
“I’d never buy an RV from them….” Heck the original store in Tampa did not want to sell us one. We walked all over the place when looking for our last RV. Sales guys were “too busy” to talk to us or even hand us a card. They evidently didn’t think we were old enough or rich enough to even be on their property. I had even changed clothes to go out shopping and thought I looked pretty good. They evidently thought we were there just for the free hot dog. (I even remember when the “old man” started his business on a gravel lot in Tampa.) Lakeland RV World, down the road got our business, and they didn’t even have free hot dogs.
Thank you, RV Travel! 🙂 Interesting. I wondered at their acquisitive strategy, recalling when they had a single store in Tampa and an RV television show. That was about 10 years ago, possibly more. Thanks again, have a great weekend, safe travel, and safe stays! 🙂
Right up there with CW and General RV. The money boys are buying all the honest independents and screwing all the customers they had earned over many years and multiple units.
we have implemented further cost reduction actions in August that should be substantially complete by the end of September.
“We anticipate these decisions will save approximately $25 million annually.
Yea, you “eliminated positions “ which forced those left to do more and YOU KEPT ALL THOSE LAID OFF VACATION PAY. ONCE AGAIN A CORPORATE MOVE RUINED A COMPANY.