Lazydays Holdings announced its financial results for the third quarter ended Sept. 30, 2020 on Wednesday morning. The company said revenues for the third quarter of 2020 were $215.7 million, up $57.3 million, or 36.2 percent, versus 2019. Revenue from sales of RVs came in at $194.6 million for the third quarter of 2020, up $55.7 million, or 40.1 percent, versus 2019.
Unit sales excluding wholesale units, were 2,595 for the quarter, up 660 units, or 34.1 percent versus 2019. New and preowned RV sales revenues were $130.3 million and $64.2 million for the quarter, up 50.1 percent and 23.5 percent, respectively, compared to 2019.
Lazydays said gross profit for the quarter was $49.3 million; up $18.8 million, or 61.5 percent, versus 2019. Gross profit, excluding last-in-first-out (“LIFO”) adjustments, was $47.9 million, up $16.5 million, or 52.3 percent, versus 2019.
Gross margin excluding LIFO adjustments increased between the two periods, to 22.2 percent in 2020 from 19.9 percent in 2019, with the change attributable to improved RV sales margins and mix of business. This gross profit comparison reflects a $2.3 million net difference in LIFO adjustments between the two periods.
Selling, General and Administrative expense (“SG&A”), which excluded transaction costs, stock-based compensation, and depreciation and amortization, for the third quarter of 2020 totaled $28.6 million, up $3.0 million compared to the prior year. Lazydays said it attributed the increase to the additional overhead expenses associated with The Villages dealership acquired in August 2019, a service center near Houston that started up operations in mid-February 2020, a Phoenix dealership acquired in May 2020 and increased performance wages driven by the higher unit sales and revenue, partially offset by overhead cost reduction actions taken in April 2020.
Adjusted EBITDA, a non-GAAP financial measure, was $19.0 million for the third quarter of 2020, up $13.7 million compared to 2019. The company said this marked “another record high quarterly Adjusted EBITDA,” beating the recently set previous record of $14.9 million in the second quarter of 2020.
Net income for the third quarter of 2020 was $11.6 million, or 55 cents per share, as compared to net loss of $2.5 million, or 41 cents per share, in 2019. This $14.1 million net improvement was primarily the result of incremental profits driven by the growth in sales, the reduced amortization of stock-based compensation, as well as a $0.6 million decrease in interest expense.
As of Sept. 30, 2020, cash totaled $81.7 million, up $50.2 million from Dec. 31, 2019.
Year-over-year demand and margins in October 2020 continued to be strong, and Lazydays said that manufacturers are shipping product to it at “levels that are slightly ahead of retail sales.”