Lazydays Holdings, Inc. Reports Fourth Quarter and Fiscal Year 2021 Financial Results

March 10, 2022

Lazydays Holdings, Inc.  (“Lazydays” or the “Company”) (NasdaqCM: LAZY) announced financial results for the fourth quarter and fiscal year ended December 31, 2021 and commented on how business and key initiatives were progressing in the first quarter of 2022.

Fourth Quarter Financial Results and Highlights:

• Revenues for the fourth quarter were $322.5 million; up $126.0 million, or 64.1%, versus 2020. Revenue from sales of recreational vehicles (“RVs”) was $291.0 million for the fourth quarter, up $114.4 million, or 64.8%. RV unit sales excluding wholesale units were 3,211 for the fourth quarter, up 1,082 units, or 50.8% versus 2020. New and preowned RV sales revenues were $174.7 million and $116.3 million for the quarter, up 48.8% and 96.6%, respectively. Revenues for the fourth quarter included the positive impact of the Elkhart and Chicagoland, Indiana locations acquired in October and December 2020, respectively; the Maryville, Tennessee dealership acquired in March 2021; and the Portland, Oregon; Vancouver, Washington; and Milwaukee, Wisconsin dealerships acquired in August 2021; as well as the Nashville, Tennessee greenfield location which opened in January, 2021.

• Gross profit, excluding last-in-first-out (“LIFO”) adjustments, was $87.6 million, up $42.0 million versus 2020. Gross margin excluding LIFO adjustments increased between the two periods, from 23.2% in 2020 to 27.2% in 2021. This margin increase was driven by growth in all lines of business. Gross profit for the quarter including LIFO adjustments was $84.2 million; up $40.0 million, or 90.4%, versus 2020. This gross profit comparison was reduced by $2.0 million reflecting a net difference in LIFO adjustments between the two periods.

• Excluding transaction costs, stock-based compensation, and depreciation and amortization, selling, general and administrative expense (“SG&A”) for the fourth quarter was $53.7 million, up $24.0 million compared to the prior year. The increase in SG&A expenses was related to overhead associated with the new Lazydays locations mentioned above and as well as increased performance wages across the business as a result of the increased unit sales and profitability for the quarter. Stock-based compensation decreased $0.4 million, and depreciation and amortization increased $0.9 million compared to the prior year.

• Fourth quarter Net Income was $16.9 million, up $14.7 million compared to the same period 2020.

• Adjusted EBITDA, a non-GAAP financial measure, was $34.3 million for the fourth quarter, up $18.8 million, or 121.0% compared to 2020. This was primarily driven by the growth in all lines of business, and improved RV sales margins.

• As of December 31, 2021, cash was $98.1 million, up $31.1 million from September 30, 2021. The increase in cash includes the impact of cash received from the exercise of options of $22.3 million and proceeds from financing liabilities of $14.2 million, offset by cash used for the stock repurchase of $12.0 million.

 2021 Fiscal Year Financial Results and Highlights:

• Revenues for the fiscal year 2021 were $1.2 billion; up $417.9 million, or 51.1%, versus 2020, which included the positive impact of the seven new Lazydays locations described above, plus the Mesa, Arizona dealership acquired in May 2020. Revenue from sales of recreational vehicles was $1.1 billion for the year, up $382 million, or 52.3%. RV unit sales excluding wholesale units were 14,270 for the year, up 4,250 units, or 42.4%, versus 2020.

• Gross profit, excluding LIFO adjustments, was $329.6 million, up $150.7 million, or 84.2%, versus 2020. Gross margin excluding LIFO adjustments increased between the two years, from 21.9% in 2020 to 26.7% in 2021. The margin increase was attributable to growth across all lines of business. Gross profit for the year including LIFO adjustments was $324.8 million; up $145.8 million, or 81.5%, versus 2020. This gross profit improvement was impacted by a $4.9 million net difference in LIFO adjustments between the two periods.

• Excluding transaction costs, stock-based compensation, and depreciation and amortization, SG&A for the year was $183.8 million, up $66.1 million compared to the prior year driven by overhead associated with the eight additional locations added in 2020 and 2021 and increased performance wages as a result of the increased unit sales and revenues for the year ended December 31, 2021. Stock-based compensation decreased $0.8 million and depreciation and amortization increased $3.1 million compared to the prior year.

• 2021 annual Net Income was $82.0 million, up $67.4 million compared to the same period 2020.

• Adjusted EBITDA, a non-GAAP financial measure, was $144.9 million for the year, up $86.0 million, or 145.8%, compared to 2020. This was primarily driven by increased units sold and gross profit, paired with management of our SG&A costs. Adjusted EBITDA Margin as a percentage of revenue increased to 11.7% for the year, compared to 7.2% in 2020.

• As of December 31, 2021, cash was $98.1 million, up $34.6 million from December 31, 2020. The increase in cash was primarily driven by proceeds from financing liabilities of $26.2 million, proceeds from the exercise of warrants of $11.6 million, and proceeds from the exercise of stock options of $30.7 million; offset by cash used in the stock repurchase of $12.0 million. The change in cash also includes the impact of cash used to invest in growth initiatives including three acquisitions and the payment of accrued dividends on the Series A preferred stock of approximately $4.8 million.

2022 First Quarter Update and Highlights:

• RV shipments from OEMs have continued to improve, with towables approaching desired stock levels. Inventories for higher-end towables, fifth wheels, and motorized units are improving, but remain below historical and desired levels with continued strong consumer demand.

• The Company continues to experience strong consumer demand with margins consistent with the fourth quarter of 2021.

• With the improved availability of product, the company commenced operations in its new Monticello, Minnesota RV sales center in March, 2022. This is the Company’s second location in Minnesota.

Lazydays currently operates a total of sixteen dealerships across the United States: Arizona (2), Colorado (2), Florida (2), Indiana (2), Minnesota (2), Oregon (1), Tennessee (3), Washington (1) and Wisconsin (1); and operates a dedicated Service Center location near Houston, Texas.

Conference Call Information:

The Company has scheduled a conference call at 10:00AM Eastern Time on March 10, 2022 that will also be broadcast live over the internet. The call can be accessed as follows:

Via online registration at:   http://events.q4inc.com/attendee/509065053  or

phone registration: (888) 440-6203 or (289) 815-3589 Conference ID 1488544; also via webcast by clicking the link.

A live audio webcast of the conference call will be available online at https://www.lazydays.com/investor-relations.

A telephonic replay of the conference call will be available until March 17, 2022 and may be accessed by calling  1-800-770-2030 or 1-647-362-9199 with a conference ID number of 1488544. The webcast will be archived in the Investor Relations section of the Company’s website.

ABOUT LAZYDAYS RV
As an iconic brand in the RV industry, Lazydays, The RV Authority, consistently provides the best RV sales, service, and ownership experience, which is why RVers and their families become Customers for Life. Lazydays continues to add locations at a rapid pace as it executes its geographic expansion strategy that includes both acquisitions and greenfields.

Since 1976, Lazydays RV has built a reputation for providing an outstanding customer experience with exceptional service excellence and unparalleled product expertise, along with being a preferred place to rest and recharge with other RVers. By offering the largest selection of RV brands from the nation’s leading manufacturers, state-of-the-art service facilities, and thousands of accessories and hard-to-find parts, Lazydays RV provides everything RVers need and want.

Lazydays Holdings, Inc. is a publicly listed company on the Nasdaq stock exchange under the ticker “LAZY.”