Lazydays today reported financial results for the fourth quarter ending Dec. 31, 2023.
“The fourth quarter of 2023 proved to be a challenging operating environment, in particular due to industry wide economic pressures. However, after increasing our marketing budget and aggressively discounting 2022 and 2023 inventory our unit volumes increased meaningfully both sequentially and year-over-year in December, January and February,” said John North, Lazydays CEO. “More importantly, we have seen gross profit on vehicle sales improve from December to February and an increasing percentage mix of current model year units sold relative to the total, generating more gross profit dollars. As of today, our new inventory is comprised of more than 80% current model year units, and we believe is among the healthiest in the industry. Additionally, our adjusted cash flow from operations is positive this quarter to date.”
Fourth quarter 2023 revenue decreased to $198.0 million from $243.5 million in the fourth quarter of 2022, the company reported. As a result of the decline in the price of its common equity in the fourth quarter of 2023, Lazydays determined a triggering event had occurred relative to the carrying value of goodwill, and, as a result, the company recorded a non-cash goodwill impairment charge of $118.0 million in the quarter.
Fourth quarter 2023 net loss was $108.0 million compared to net loss of $1.4 million for the same period in 2022, Lazydays reported. Fourth quarter 2023 adjusted net loss, a non-GAAP measure, was $13.8 million compared to net income of $0.9 million for the same period in 2022. Fourth quarter 2023 net loss per diluted share was $7.59 compared to net loss per diluted share of $0.24 for the same period in 2022. Adjusted fourth quarter 2023 net loss per diluted share was $1.09 compared to net loss per diluted share of $0.02 for the same period in 2022.
The fourth quarter 2023 adjusted results exclude a net non-core charge of $6.50 per diluted share related to our non-cash goodwill impairment charge, LIFO adjustment, and acquisition expenses. The fourth quarter of 2022 adjusted results exclude a net non-core charge of $0.22 per diluted share related to the effects of changes in fair value of warrant liabilities, our LIFO adjustment, acquisition expenses and severance and transition costs.
Net loss for 2023 was $110.3 million compared to net income of $66.4 million for the same period in 2022. Adjusted net loss for 2023 was $11.5 million compared to net income of $64.1 million for the same period in 2022. Net loss per diluted share for 2023 was $8.45 compared to net income per diluted share of $2.42 for the same period in 2022, and adjusted net loss per diluted share was $1.24 compared to adjusted net income per diluted share of $3.05 for the same period in 2022.
The adjusted results for full year 2023 exclude a net non-core charge of $7.21 per diluted share related to the effects of a non-cash goodwill impairment charge, changes in the fair value of warrant liabilities, the company’s LIFO adjustment, acquisition expenses, severance and transition costs and a storm reserve. The adjusted results for the same period in 2022 exclude a net non-core charge of $0.63 per diluted share related to the effects of changes in the fair value of warrant liabilities, the LIFO adjustment, acquisition expenses and severance and transition costs.
Commenting on 2024, John stated, “We anticipate a pre-tax loss in the first quarter and a return to profitability thereafter. Given the significant corporate development actions taken in 2023, the first six months of this year will be focused on improving volume and store performance. For the full year 2024, we anticipate both positive net income and operational cash flow. The quality of our locations, the partnerships we have with our OEMs and the operational improvements we have made to our leadership team give me confidence in our future results and we look forward to demonstrating the earnings power of the company in the future.”
For additional information from the Lazydays financial report, click here.