Q1 2024 Lazydays Holdings Inc Earnings Call Transcript
Key Points
- Lazydays Holdings Inc (GORV) has made significant progress in inventory health, reducing older model units and maintaining a healthy stock of newer models.
- The company has successfully increased its used procurement, enhancing its used inventory which typically generates higher lead volumes and contributes positively to sales funnel.
- Lazydays Holdings Inc (GORV) has improved its finance and insurance performance, increasing F&I per unit and financing penetration, which boosts gross profit generation in this critical revenue stream.
- Despite a challenging market, the company has managed to control costs effectively, maintaining SG&A expenses close to last year's levels even with additional locations.
- Lazydays Holdings Inc (GORV) has secured additional financial support and liquidity, raising $15 million through an expansion of its mortgage financing, which strengthens its cash position.
- The company experienced a decrease in total revenue by 8.5% and a significant decline in new unit sales by 11.1% in the first quarter of 2024 compared to the same period in 2023.
- Lazydays Holdings Inc (GORV) reported a pretax loss and anticipates continued challenges in increasing unit volume throughout 2024.
- Gross profit per unit for both new and used units has decreased due to aggressive discounting and market conditions, impacting overall profitability.
- Finance and insurance revenue declined by 5.6% during the quarter, primarily due to a decrease in unit volume and higher chargebacks.
- Service, body, and parts revenue decreased by 20.6%, with a corresponding decrease in gross profit by 18.9%, indicating challenges in these areas of the business.
Greetings, and welcome to the Lazydays Holdings first quarter 2024 conference call. As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Kelly Porter Chief Financial Officer.
Thank you. You may begin.
Good morning, everyone, and thank you for joining us. On the call with me today are John North CEO. and Amber Dillard Vice President of Operations.
Before we begin, I would like to remind everyone that we will be discussing forward-looking information, including potential future financial performance, which are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from such forward-looking statements and information.
Such risks, uncertainties, assumptions and other factors are identified in our earnings release and other periodic filings with the SEC as well as the Investor Relations section of our website. Accordingly, forward-looking statements should not be relied upon as a prediction
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