Lazydays reported a net loss in its annual financial results for the second consecutive year. To stem the losses, the dealer chain implemented a recapitalization project and shrunk its store footprint nationwide.
Lazydays interim CEO Ron Fleming said despite a challenging 2024, the company was focused on building a more agile and durable business.
Fleming said that “2024 was a year of significant transformation for Lazydays. While our fourth-quarter and full-year 2024 results were challenging, we believe the steps we have taken, and continue to take, will create a more durable, higher-performing company.”
Lazydays reported a $180 million loss in 2024, a 63% increase from its $110.3 million loss in 2023. In its annual report, Lazydays said it had $24.7 million in cash and cash equivalents as of Dec. 31, 2024. The company faced debt obligations of $95.1 million, operating and finance lease obligations of $93.1 million and a $306 million floorplan note.
The report said its new credit agreement permanently eliminated the company’s ability to borrow new loans or letters of credit under the revolving credit facility with M&T Bank. In March, Lazydays lowered its floorplan line to $265 million from $325 million.
“Our ability to meet future anticipated liquidity needs over the next year will largely depend on our ability to generate positive cash inflows from operations and/or secure additional outside capital,” the report said. “While we believe we will be able to generate sufficient positive cash inflows and secure outside capital, there can be no assurance our plans will be successfully implemented and, as such, we may be unable to continue as a going concern over the next year.”
In November, Lazydays revealed recapitalization plans including a private investment, stock sales and an amended credit facility.
The dealer chain also sold stores. Lazydays sold its Texas location to FunTown RV for $8 million, sold five stores to Camping World for over $50 million and agreed to sell three more stores to General RV for an undisclosed sum.
If the General RV deal is closed, Lazydays will operate 14 locations nationwide. In March 2024, when Lazydays opened its Surprise, Arizona, location that was sold to Camping World a year later, Lazydays had 25 locations nationwide.
As a result of the store sales to Camping World, Lazydays will continue to operate its locations in Portland, Oregon, and Council Bluffs, Iowa. Both stores were slated to be acquired by Camping World, but the sales did not close.
“We remain well-equipped to continue operating both stores,” Fleming said, “due to the way in which our transaction with Camping World was structured.”
Lazydays received a $10 million deposit from Camping World on the sale agreement and, because Camping World did not buy all seven stores, Lazydays will not be required to issue Camping World over 9.7 million shares as part of the transactions.
“Taken together, these actions fortified our financial foundation and provided us with a more focused dealership footprint,” Fleming said, “allowing us to better navigate the evolving RV landscape.”
Chief Operating Officer Amber Dillard highlighted positive signs for Lazydays. She said revenue from finance and insurance product sales averaged over $6,000 per RV, up 3% from the previous quarter’s results. Nearly three-quarters of RV sales (73%) in the fourth quarter of 2024 were financed.
The dealer chain continues to bring down its aged inventory. Dillard said one-quarter of all Lazydays’ inventory is comprised of model years before 2025. Of the new inventory, 77% is towable RVs, up from 73% of inventory at the end of 2023.
Dillard said the dealer chain was optimistic that the industry was near the bottom of a prolonged market down cycle. She said Lazydays also sees a tremendous opportunity to improve stores’ operational performance without relying solely on market stabilization.
“We are working closely with our general managers,” she said, “to identify additional ways to increase volume, improve F&I and drive incremental service revenue.”
