• Lazydays Holdings Inc (NASDAQ:LAZY) reported a decrease in Q3 2023 revenue to $280.7 million from $333.8 million in Q3 2022.

• The company posted a net loss of $5.6 million for Q3 2023, compared to a net income of $7.7 million in the same period in 2022.

• Adjusted net loss for Q3 2023 was $2.9 million, compared to a net income of $14.4 million in Q3 2022.

• Lazydays Holdings Inc (NASDAQ:LAZY) ended the third quarter with total estimated liquidity of $67.8 million.

• Warning! GuruFocus has detected 7 Warning Signs with LAZY.

Lazydays Holdings Inc (NASDAQ:LAZY) released its Q3 2023 financial results on November 3, 2023. The company reported a decrease in revenue to $280.7 million from $333.8 million in Q3 2022. The net loss for Q3 2023 was $5.6 million, compared to a net income of $7.7 million in the same period in 2022. The adjusted net loss for Q3 2023 was $2.9 million, compared to a net income of $14.4 million in Q3 2022.

Financial Performance

The company's new vehicle retail revenue decreased by 15.0% to $172.9 million, while pre-owned vehicle retail revenue declined by 17.3% to $75.1 million. The finance and insurance segment saw an 11.4% decrease in revenue to $16.5 million. The service, body and parts, and other segment reported a slight decrease of 1.2% to $14.2 million.

The company's total cost applicable to revenue was $226.2 million, a decrease of 12.4% from Q3 2022. The gross profit margin for new vehicle retail was 10.8%, a decrease from 16.7% in Q3 2022. The pre-owned vehicle retail gross profit margin was 20.5%, down from 22.3% in the same period last year.

Corporate Developments

During the quarter, Lazydays Holdings Inc (NASDAQ:LAZY) acquired Buddy Gregg Motorhomes in Knoxville, Tennessee, and Century RV in Longmont, Colorado. The company also opened a new location in Wilmington, Ohio. These stores are estimated to add $125 million in revenues at steady state.

Balance Sheet Update

The company ended the third quarter with total estimated liquidity of $67.8 million, including cash of $32.9 million, $4.6 million of availability on its revolving credit facility, and $30.2 million available from undrawn floor plan capacity and its floor plan offset account. Additionally, the company holds approximately $95.5 million of unfinanced real estate that could provide an estimated $80.6 million of additional liquidity.

Outlook

Lazydays Holdings Inc (NASDAQ:LAZY) filed a registration statement on Form S-1 with the Securities and Exchange Commission for a rights offering. The offering, made effective by the SEC on October 23, 2023, is expected to generate approximately $99.6 million in net proceeds, which will be used for growth initiatives, acquisitions, new business development activities, and general corporate purposes.

Explore the complete 8-K earnings release (here) from Lazydays Holdings Inc for further details.

This article first appeared on GuruFocus.