Lazydays Holdings recently reported its financial results for the first quarter ended March 31, showing revenues were $173.1 million, which is down $4.7 million, or 2.7%, versus 2018.
Revenue from sales of RVs was $152.6 million for the quarter, down $5.7 million, or 3.6%. RV unit sales excluding wholesale units, were 1,974 for the quarter, down 80 units, or 3.9% versus 2018. The decline in the sale of RVs for the quarter was partially offset by an $800,000 increase in finance and insurance revenues, as well as other revenues including parts, accessories, and related services.
Gross profit, which excludes depreciation and amortization, was $36.9 million, down $2 million versus 2018. Gross margin declined slightly between the two periods, from 21.9% in 2018 to 21.3% in 2019, primarily driven by a mix shift towards new versus pre-owned unit sales.
“Despite the continued difficult industry conditions in the first quarter along with severe weather in our Minnesota, Tennessee and Colorado markets, we are generally pleased with our performance,” said William Murnane, chairman and CEO of Lazydays. “Notwithstanding weaker demand and lower volume, we were able to maintain our margins. Moreover, we reduced our same store RV inventory to slightly below March 2018 levels and believe our inventory is well positioned and properly balanced. We are also very pleased with our strong cash flow in the quarter.”
Other highlights from the report included the March 11 announcement that Lazydays will open a dealership in Nashville, Tenn., and has signed a dealership agreement for the Nashville market with Grand Design RV. Lazydays anticipates opening its Nashville dealership in early 2020, after it builds out its new dealership. In the meantime, the company will serve the Nashville market through its Lazydays of Knoxville dealership.
Lazydays also expects to complete construction of a 30,000 square foot state-of-the-art RV service facility adjacent to its Minnesota dealership later this month. Upon completion of this facility, the company will immediately commence RV service operations at this location in advance of the busy summer RV season.
