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Lazydays Holdings, Inc. (LAZY)
Q1 2019 Earnings Conference Call
May 09, 2019, 10:00 ET
James Meehan - Corporate Controller
William Murnane - Chairman & CEO
Nicholas Tomashot - CFO
Conference Call Participants
Frederick Wightman - Citigroup
Ryan Sigdahl - Craig-Hallum Capital Group
Previous Statements by LAZY
» Lazydays Holdings, Inc. (LAZY) CEO Bill Murnane on Q4 2018 Results - Earnings Call Transcript
» Lazydays Holdings Inc (LAZY) CEO Bill Murnane on Q3 2018 Results - Earnings Call Transcript
» Lazydays Holdings Inc. (LAZY) CEO William Murnane on Q2 2018 Results - Earnings Call Transcript
Thank you. James Meehan, you may begin your conference.
Thank you, Jason. Good morning, and thank you for joining us for our first quarter 2019 financial results conference call. I'm James Meehan, Corporate Controller at Lazydays. We issued the company's earnings press release this morning. A copy of the earnings release is available under the Events & Presentations section of the Investor Relations page of our website and has been furnished as an exhibit to our current report on Form 8-K filed with the SEC.
With me on the call today are Mr. Bill Murnane, our Chairman and Chief Executive Officer; and Mr. Nick Tomashot, our Chief Financial Officer. As a reminder, please note that some of the information that you will hear today during our discussion may consist of forward-looking statements, including, without limitation, statements regarding revenue, gross margins, operating expenses, stock-based compensation expense, taxes, product mix shift and geographic expansion.
Actual results or trends for future periods could differ materially from forward-looking statements as a result of many factors. For additional information regarding factors that could impact the forward-looking statements, please refer to the risk factors discussed in the Form 10-K filed with the SEC on March 22, 2019. We also will discuss non-GAAP measures of financial performance that we believe are useful to the company, including EBITDA, adjusted EBITDA and adjusted EBITDA margin. Please refer to our earnings press release for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures.
For the three months ended March 31, 2019, the financial information presented represents the operating results of Lazydays Holdings, Inc. For the three months ending March 31, 2018, the financial information presented represents the combined operating results of Lazydays Holdings, Inc. for the period from March 15, 2018 to March 31, 2018 with the operating results of Lazy Days' R.V. Center, Inc. for the period from January 1, 2018 to March 14, 2018.
Now it is my pleasure to introduce Bill Murnane.
Thank you, James, and good morning, everyone. Thank you for joining us this morning. I will give a quick overview of what we are seeing in our markets, and then Nick will give more details on our specific performance. Quarter one of this year began with similar slow demand as we experienced in quarter four of last year and remained relatively weak through February. We did begin to feel demand improve a little in March, but it was still weaker than March of 2018 - the March quarter of 2018. It is far too early to get any read on quarter two of this year, but we should begin to benefit from the addition of our Minneapolis and Knoxville dealerships in quarter two of this year.
Now I'm going to turn it over to Nick Tomashot, our CFO, to take you through some of the financial highlights of the first quarter.
Thank you, Bill, and good morning, everybody. Please note that unless stated otherwise, the 2019 first quarter result comparisons are to the same quarter ended March 31, 2018. Total revenues for the quarter were $173.1 million, down $4.7 million or 2.7% from 2018. Recreational vehicle unit sales, excluding wholesale units, were 1,974, down 80 units or 3.9%. RV sales revenue was down 3.6% as well at $152.6 million for the quarter, down $5.7 million.
New RV unit sales were 1,216, up 11 units or 0.9%. There was a product mix shift for the quarter from motorized towards towable vehicles, and our average selling price for new vehicles was $1,900 lower than prior year at $80,000, down 2.3%. Net new RV sales revenue was down $1.3 million or 1.3% to $97.8 million. For the pre-owned side of our business, there was a unit and revenue decline driven by a decline in pre-owned motorized vehicle sales. This decrease was driven by limits in the availability of quality pre-owned motorized units. Pre-owned units sold, excluding wholesale, were 758, down 91 units or 10.7%. Pre-owned revenue for the quarter was $54.8 million, down $4.4 million or 7.3% from 2018.
The average selling price of pre-owned recreational vehicles was $65,400, down $3,500 or 5.1%, reflecting the shift in product mix towards lower list price towables. The decline in our retail pre-owned vehicle sales was partially offset by a $2.2 million increase in wholesale sales compared to 2018. Revenues from our other lines of business consist of parts, accessories and related service, finance and insurance or F&I revenue as well as other miscellaneous revenue, including consignment sales commissions, campgrounds, rentals, restaurants, et cetera. In total, combined revenue from these other lines of business was $20.4 million, up $0.8 million or 4.4% compared to 2018. The increase was driven by F&I revenue growth of $0.4 million or 4.5% to $9.7 million, and parts and service revenue increased $0.8 million or 10.2% to $8.8 million. These increases were offset by declines in other miscellaneous revenue primarily driven by decreased commissions on consignment sales.