Lazy Days’ R.V. Center and Andina Acquisition Corp. II closed their business combination on March 15, 2018. In connection with the consummation of the business combination, the combined company was renamed Lazydays Holdings.
On March 16, 2018, the combined company’s common stock commenced trading on the Nasdaq Capital Market. For the three months ended March 31, 2018, the financial information presented below and in the accompanying tables represents the combined operating results of Lazydays Holdings (labeled as “successor” in the accompanying tables) for the period from March 15, 2018 to March 31, 2018 with the operating results of Lazy Days’ R.V. Center (labeled as “predecessor” in the accompanying tables) for the period from Jan. 1, 2018 to March 14, 2018. For the quarter ended March 31, 2017, the financial information below represents the operating results of Lazy Days’ R.V. Center.
- Revenues increased by $7.8 million, or 4.6 percent, from $170.0 million for the quarter ended March 31, 2017 to $177.8 million for the quarter ended March 31, 2018. Sales of RVs increased by $7.5 million, or 4.9 percent, from $150.8 million for the three months ended March 31, 2017, to $158.3 million for the three months ended March 31, 2018, driven by strong customer demand for new RVs.
- Gross margins increased by $3.2 million, or 9.2 percent, from $35.7 million for the quarter ended March 31, 2017 to $38.9 million for the quarter ended March 31, 2018. Increases in margins were primarily driven by an 8.8 percent increase in the average retail selling price per unit driven by a favorable sales mix and customer demand.
- Excluding transaction costs, selling, general, and administrative expenses increased by $1.8 million or 6.5 percent. This was primarily driven by increases in salaries and compensation costs, which increased primarily as a result of increased margins. Selling, general, and administrative expenses excluding transactions costs were 74.0 percent and 75.8 percent of gross margins for the quarters ended March 31, 2018 and 2017, respectively. In addition, the company incurred approximately $3.2 million in transaction costs as a result of the merger with Andina for the quarter ended March 31, 2018.
- Adjusted EBITDA, a non-GAAP financial measure, increased by 15.4 percent from $10.0 million for the quarter ended March 31, 2017 to $11.5 million for the quarter ended March 31, 2018, primarily driven by increases in gross margins described above.
- Cash increased to approximately $33.1 million, primarily as a result of the $94.8 million PIPE investment which took place in conjunction with the merger described above and approximately $11.2 million in incremental cash as a result of an increase in term loans. These financing cash inflows were offset by the $86.7 million purchase price payment in the merger between Lazy Days’ R.V. Center and Andina Acquisition Corp. II.
“We are pleased to be making our first earnings announcement following our merger with Andina Acquisition Corp. II. It was a transformative period for Lazydays as we became a publicly traded company listed on the Nasdaq Capital Market,” said William Murnane, chairman and CEO of Lazydays. “I’m very proud that our team was able to maintain its focus on business growth and operating improvements while we completed the merger.”
