TAMPA, Fla. - Lazydays Holdings, Inc. (NasdaqCM: GORV) disclosed a wider adjusted net loss and a decline in revenue for the fourth quarter ended December 31, 2023, compared to the same period last year and analyst expectations.
The recreational vehicle company reported an adjusted net loss of $13.8 million, or -$1.09 per diluted share, which was significantly below the analyst estimate of -$0.56 per share. Revenue for the quarter decreased to $198 million from $243.5 million in the fourth quarter of 2022 and fell short of the consensus estimate of $227.68 million.
CEO John North acknowledged the challenging operating environment, citing economic pressures but noted an increase in unit volumes and an improvement in gross profit on vehicle sales from December to February. North also highlighted the company's aggressive marketing and discounting strategies, which have led to a healthier inventory mix with over 80% being current model year units.
The company's fourth-quarter performance was impacted by a non-cash goodwill impairment charge of $118.0 million due to a decline in the price of its common equity. This contributed to a reported net loss of $108.0 million, a stark contrast to the net loss of $1.4 million in the same quarter of the previous year.
For the full year 2023, Lazydays anticipates a pre-tax loss in the first quarter and a return to profitability thereafter. The company expects to focus on improving volume and store performance in the first half of the year and projects positive net income and operational cash flow for the full year 2024.
CFO Kelly Porter expressed confidence in the company's financial foundation, with $45 million in cash on hand and positive operational cash flow for the first 70 days of 2024. Porter also thanked the company's lenders for modifying the credit facility to provide flexibility in the current macroeconomic environment.
Despite the financial setbacks, Lazydays has continued its expansion efforts, acquiring new locations and launching a comprehensive rebranding effort, including a new website and stock symbol change to "GORV."
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