Lazydays Holdings announced Wednesday during its quarterly earnings call that as a result of recent guidance provided by the SEC in April for all Special Purpose Acquisition-related companies, it will be restating its previously issued 2020 10-K filing, including 2019 and 2020 consolidated financial statements.
The company determined the refiling was necessary after consulting with third party advisors, it said.
It also said it anticipates the restatement will have no impact on its previously communicated revenue, gross profit, income from operations and net cash provided by operating activities, for 2018, 2019 or 2020. The company further expects there to be no impact on previously reported adjusted EBITDA.
In its quarterly earnings report, Lazydays said it had revenue of $271 million for the first quarter, up $80 million, or 42 percent, during the same period last year. Sales of RVs accounted for $245 million of that revenue, up 46.5 percent from last year’s Q1.
Total unit sales were 3,197, up 781 units, or 32.3 percent. Revenue from new RV sales was $167.4 million, an increase of 63 percent, and sales of pre-owned accounted for $77.5 million, an increase of 19.7 percent.
“We continue to experience very strong demand for RVs and inventory continues to be tight,” said Bill Murnane, Lazydays’ president and CEO. “The combination of robust demand and tight inventory has had and continues to have a very positive impact on our margins. April was one of the strongest months in our history and May is shaping up to be equally strong, and we expect this strong demand to continue in the foreseeable future. Our inventory declined modestly in Q1 and inventory has continued to decline this quarter to date. Our dealership inventory is well below historical and desired levels. OEM production levels are recovering from the impact of the pandemic and we expect OEM production to improve throughout calendar year 2021, but we don’t expect our inventory levels to improve much, if at all, until later this year after the summer season begins to wind down.
“We believe that dealer inventories will not normalize until the second half of 2022 at the earliest. We believe the significant supply/demand imbalance will continue for the next year and will allow us to maintain elevated margins throughout calendar year 2021 and likely into calendar year 2022. The unprecedented demand for RVs, combined with the tight inventory conditions, are keeping our pending sale backlog at a historical high. As a reminder, pending sales are contracts for units that are sold but have not been delivered to the dealership by the OEM. Our growth pipeline remains very healthy and active. We recently announced our letter of intent to acquire B. Young RV dealerships in Portland, Oregon, and Vancouver, Washington markets. B. Young fits perfectly with our strategy to acquire the strongest RV dealerships with the best teams and outstanding brands in the top national markets. We are very excited to welcome the B. Young team into the Lazydays family of dealerships, and we look forward to helping them grow market share in the very strong Pacific Northwest RV market.
“In addition, we are working on adding many new RV dealerships to our network over the next 12 to 18 months. These dealerships will be both acquired and greenfield dealerships. Currently, we have line of sight to having at least 20 fully operational dealerships by the end of 2022. Today, we are operating 12 dealerships and one dedicated service center.”
