QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Large accelerated filer | ¨ | x | ||||||||||||
Non-accelerated filer | ¨ | Smaller reporting company | ||||||||||||
Emerging growth company |
Page | |||||
As of June 30, 2023 | As of December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash | $ | $ | |||||||||
Receivables, net of allowance for doubtful accounts of $ | |||||||||||
Inventories | |||||||||||
Income tax receivable | |||||||||||
Prepaid expenses and other | |||||||||||
Total current assets | |||||||||||
Property and equipment, net of accumulated depreciation of $ | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ |
As of June 30, 2023 | As of December 31, 2022 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses and other current liabilities | |||||||||||
Dividends payable | |||||||||||
Income tax payable | |||||||||||
Floor plan notes payable, net of debt discount | |||||||||||
Financing liability, current portion | |||||||||||
Long-term debt, current portion | |||||||||||
Operating lease liability, current portion | |||||||||||
Total current liabilities | |||||||||||
Long-term liabilities | |||||||||||
Financing liability, non-current portion, net of debt discount | |||||||||||
Revolving line of credit | |||||||||||
Long term debt, non-current portion, net of debt discount | |||||||||||
Operating lease liability, non-current portion | |||||||||||
Deferred income tax liability | |||||||||||
Warrant liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Series A convertible preferred stock; | |||||||||||
Stockholders’ equity | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Treasury stock, at cost, | ( | ( | |||||||||
Retained earnings | |||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||
New vehicle retail | $ | $ | $ | $ | |||||||||||||||||||
Pre-owned vehicle retail | |||||||||||||||||||||||
Vehicle wholesale | |||||||||||||||||||||||
Finance and insurance | |||||||||||||||||||||||
Service, body and parts and other | |||||||||||||||||||||||
Total revenue | |||||||||||||||||||||||
Cost applicable to revenues | |||||||||||||||||||||||
New vehicle retail | |||||||||||||||||||||||
Pre-owned vehicle retail | |||||||||||||||||||||||
Vehicle wholesale | |||||||||||||||||||||||
Finance and insurance | |||||||||||||||||||||||
Service, body and parts and other | |||||||||||||||||||||||
LIFO | |||||||||||||||||||||||
Total cost applicable to revenue | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Selling, general, and administrative expenses | |||||||||||||||||||||||
Income from operations | |||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Floor plan interest expense | ( | ( | ( | ( | |||||||||||||||||||
Other interest expense | ( | ( | ( | ( | |||||||||||||||||||
Change in fair value of warrant liabilities | |||||||||||||||||||||||
Total other (expense) income, net | ( | ( | |||||||||||||||||||||
Income before income tax expense | |||||||||||||||||||||||
Income tax expense | ( | ( | ( | ( | |||||||||||||||||||
Net income | |||||||||||||||||||||||
Dividends on Series A convertible preferred stock | ( | ( | ( | ( | |||||||||||||||||||
Net income and comprehensive income attributable to common stock and participating securities | $ | $ | $ | $ | |||||||||||||||||||
EPS: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Common Stock | Treasury Stock | Additional Paid-In capital | Retained Earnings | Total Stock-holders’ Equity | |||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Repurchase of treasury stock | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Conversion of warrant, options and restricted stock units | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Disgorgement of short-swing profits | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Dividends on Series A preferred stock | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | ( | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Repurchase of treasury stock | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Conversion of warrant, options and restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Shares issued pursuant to the Employee Stock Purchase Plan | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Dividends on Series A preferred stock | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | Additional Paid-In capital | Retained Earnings | Total Stock-holders’ Equity | |||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Exercise of warrants and options | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Dividends on Series A preferred stock | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | ( | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Exercise of warrants and options | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Shares issued pursuant to the Employee Stock Purchase Plan | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Dividends on Series A preferred stock | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Six months ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash Flows From Operating Activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Stock based compensation | |||||||||||
Bad debt expense | |||||||||||
Depreciation of property and equipment | |||||||||||
Amortization of intangible assets | |||||||||||
Amortization of debt discount | |||||||||||
Non-cash lease expense | |||||||||||
Loss on sale of property and equipment | |||||||||||
Deferred income taxes | ( | ||||||||||
Change in fair value of warrant liabilities | ( | ( | |||||||||
Tax benefit related to stock-based awards | |||||||||||
Impairment charges | |||||||||||
Changes in operating assets and liabilities (net of acquisitions): | |||||||||||
Receivables | ( | ( | |||||||||
Inventories | ( | ( | |||||||||
Prepaid expenses and other | ( | ( | |||||||||
Income tax receivable/payable | ( | ||||||||||
Other assets | ( | ( | |||||||||
Accounts payable | ( | ||||||||||
Accrued expenses and other current liabilities | |||||||||||
Total Adjustments | ( | ||||||||||
Net Cash Provided By (Used In) Operating Activities | ( | ||||||||||
Cash Flows From Investing Activities | |||||||||||
Cash paid for acquisitions | ( | ||||||||||
Proceeds from sales of property and equipment | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Net Cash Used In Investing Activities | ( | ( | |||||||||
Cash Flows From Financing Activities | |||||||||||
Net (repayments) borrowings under M&T bank floor plan | ( | ||||||||||
Borrowings under revolving line of credit | |||||||||||
Repayment of long term debt with M&T bank | ( | ( | |||||||||
Proceeds from financing liability | |||||||||||
Repayments of financing liability | ( | ( | |||||||||
Payment of dividends on Series A preferred stock | ( | ( | |||||||||
Repurchase of Treasury Stock | ( | ( | |||||||||
Proceeds from shares issued pursuant to the Employee Stock Purchase Plan | |||||||||||
Proceeds from exercise of warrants | |||||||||||
Proceeds from exercise of stock options | |||||||||||
Disgorgement of short-swing profits | |||||||||||
Repayments of acquisition notes payable | ( | ||||||||||
Loan issuance costs | ( | ||||||||||
Net Cash Provided By Financing Activities | |||||||||||
Net (Decrease) Increase In Cash | ( | ||||||||||
Cash - Beginning | |||||||||||
Cash - Ending | $ | $ |
Six months ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Supplemental Disclosures of Cash Flow Information: | |||||||||||
Cash paid during the period for interest | $ | $ | |||||||||
Cash paid during the period for income taxes net of refunds received | |||||||||||
Non-Cash Investing and Financing Activities | |||||||||||
Accrued dividends on Series A preferred stock | $ | $ | |||||||||
Decrease in PIPE warrant liability due to expiration of warrants |
(In thousands) | Three months ended June 30, 2023 | Six months ended June 30, 2023 | ||||||||||||
Revenue | $ | $ | ||||||||||||
Income from operations |
(In thousands) | Consideration | ||||
Cash paid, net of cash acquired | $ | ||||
(In thousands) | Assets Acquired and Liabilities Assumed | ||||
Inventories | $ | ||||
Prepaid expenses and other | |||||
Property and equipment | |||||
Goodwill | |||||
Total assets acquired | |||||
Accounts payable | |||||
Net assets acquired | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Income before income taxes | $ | $ | $ | $ | |||||||||||||||||||
Net income | $ | $ | $ | $ |
(In thousands) | As of June 30, 2023 | As of December 31, 2022 | |||||||||
New recreational vehicles | $ | $ | |||||||||
Pre-owned recreational vehicles | |||||||||||
Parts, accessories and other | |||||||||||
Less: excess of current cost over LIFO | ( | ( | |||||||||
Total | $ | $ |
Balance as of December 31, 2021 | $ | |||||||
Additions through acquisitions | ||||||||
Measurement period adjustments related to prior acquisitions | ( | |||||||
Balance as of December 31, 2022 | ||||||||
Additions through acquisitions | ||||||||
Measurement period adjustments related to prior acquisitions | ||||||||
Balance as of June 30, 2023 | $ |
June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
(In thousands) | Gross Carrying Amount | Accumulated Amortization | Net Asset Value | Gross Carrying Amount | Accumulated Amortization | Net Asset Value | ||||||||||||||||||||||||||||||||
Amortizable intangible assets: | ||||||||||||||||||||||||||||||||||||||
Manufacturer relationships | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Customer relationships | ||||||||||||||||||||||||||||||||||||||
Non-compete agreements | ||||||||||||||||||||||||||||||||||||||
Non-amortizable intangible assets: | ||||||||||||||||||||||||||||||||||||||
Trade names and trademarks | — | — | ||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Amortization expense | $ | $ | $ | $ |
(In thousands) | ||||||||
Remainder of 2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
Thereafter | ||||||||
Total | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Florida | % | % | % | % | |||||||||||||||||||
Tennessee | % | % | % | % | |||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Thor Industries, Inc. | % | % | % | % | ||||||||||||||||||||||
Winnebago Industries, Inc. | % | % | % | % | ||||||||||||||||||||||
Forest River, Inc. | % | % | % | % |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
(Dollars in thousands - except share and per share amounts) | ||||||||||||||||||||||||||
Distributed earnings allocated to common stock | $ | $ | $ | $ | ||||||||||||||||||||||
Net income attributable to common stock and participating securities used to calculate basic (loss) earnings per share | ||||||||||||||||||||||||||
Net earnings allocated to Series A convertible preferred stock | ( | ( | ||||||||||||||||||||||||
Net earnings allocated to common stock and participating securities | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted average shares outstanding | ||||||||||||||||||||||||||
Dilutive effect of pre-funded warrants | ||||||||||||||||||||||||||
Weighted average shares outstanding - basic | ||||||||||||||||||||||||||
Weighted average common shares outstanding | ||||||||||||||||||||||||||
Weighted average pre-funded warrants | ||||||||||||||||||||||||||
Weighted average warrants (equity) | ||||||||||||||||||||||||||
Weighted average warrants (liabilities) | ||||||||||||||||||||||||||
Weighted average options | ||||||||||||||||||||||||||
Weighted average shares outstanding - diluted | ||||||||||||||||||||||||||
Basic income per common share | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted income per common share | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Stock options | |||||||||||||||||||||||
Restricted stock units | |||||||||||||||||||||||
Shares issuable under the Employee Stock Purchase Plan | |||||||||||||||||||||||
Share equivalents excluded from diluted EPS |
Repurchases in 2023 | Cumulative Repurchases as of June 30, 2023 | |||||||||||||||||||||||||
Shares | Average Price | Shares | Average Price | |||||||||||||||||||||||
Stock repurchase program | $ | $ |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Stock-based compensation | $ | $ | $ | $ |
Shares Underlying Options | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value (In Thousands) | ||||||||||||||||||||
Options outstanding at December 31, 2022 | $ | $ | ( | ||||||||||||||||||||
Granted | |||||||||||||||||||||||
Cancelled or terminated | ( | ||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||
Options outstanding at June 30, 2023 | $ | ||||||||||||||||||||||
Options vested at June 30, 2023 | $ | ||||||||||||||||||||||
Options vested as of June 30, 2023 and expected to vest after June 30, 2023 |
Number of Restricted Stock Units(1) | Weighted-Average Grant Date Fair Value | ||||||||||
Outstanding at December 31, 2022 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Outstanding at June 30, 2023 |
Shares Underlying Warrants | Weighted Average Exercise Price | ||||||||||
Warrants outstanding December 31, 2022 | $ | ||||||||||
Cancelled or Expired | ( | ||||||||||
Exercised | ( | ||||||||||
Warrants outstanding June 30, 2023 |
December 31, 2022 | ||||||||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
PIPE Warrants | $ | $ | $ | $ | ||||||||||||||||||||||
Private Warrants | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Six months ended June 30, 2023 | ||||||||
Balance at December 31, 2022 | $ | |||||||
Measurement adjustment | ( | |||||||
Balance at June 30, 2023 | $ |
Three months ended June 30, | |||||||||||||||||||||||
(In thousands, except vehicle and per vehicle data) | 2023 | 2022 | Change | % Change | |||||||||||||||||||
Revenues | |||||||||||||||||||||||
New vehicle retail | $ | 182,752 | $ | 219,186 | $ | (36,434) | (16.6) | % | |||||||||||||||
Pre-owned vehicle retail | 90,991 | 112,430 | (21,439) | (19.1) | % | ||||||||||||||||||
Vehicle wholesale | 1,716 | 5,704 | (3,988) | (69.9) | % | ||||||||||||||||||
Finance and insurance | 17,742 | 21,382 | (3,640) | (17.0) | % | ||||||||||||||||||
Service, body and parts and other | 15,179 | 14,850 | 329 | 2.2 | % | ||||||||||||||||||
Total revenues | $ | 308,380 | $ | 373,552 | $ | (65,172) | (17.4) | % | |||||||||||||||
Gross profit | |||||||||||||||||||||||
New vehicle retail | $ | 24,608 | $ | 44,077 | $ | (19,469) | (44.2) | % | |||||||||||||||
Pre-owned vehicle retail | 18,566 | 28,803 | (10,237) | (35.5) | % | ||||||||||||||||||
Vehicle wholesale | 31 | (130) | 161 | NM | |||||||||||||||||||
Finance and insurance | 16,932 | 20,539 | (3,607) | (17.6) | % | ||||||||||||||||||
Service, body and parts and other | 7,662 | 7,194 | 468 | 6.5 | % | ||||||||||||||||||
LIFO | (76) | (1,866) | 1,790 | (95.9) | % | ||||||||||||||||||
Total gross profit | $ | 67,723 | $ | 98,617 | $ | (30,894) | (31.3) | % | |||||||||||||||
Gross profit margins | |||||||||||||||||||||||
New vehicle retail | 13.5 | % | 20.1 | % | (660) | bps | |||||||||||||||||
Pre-owned vehicle retail | 20.4 | % | 25.6 | % | (520) | bps | |||||||||||||||||
Vehicle wholesale | 1.8 | % | (2.3) | % | 410 | bps | |||||||||||||||||
Finance and insurance | 95.4 | % | 96.1 | % | (70) | bps | |||||||||||||||||
Service, body and parts and other | 50.5 | % | 48.4 | % | 210 | bps | |||||||||||||||||
Total gross profit margin | 22.0 | % | 26.4 | % | (440) | bps | |||||||||||||||||
Total gross profit margin (excluding LIFO) | 22.0 | % | 26.9 | % | (490) | bps | |||||||||||||||||
Retail units sold | |||||||||||||||||||||||
New vehicle retail | 1,979 | 2,455 | (476) | (19.4) | % | ||||||||||||||||||
Pre-owned vehicle retail | 1,388 | 1,597 | (209) | (13.1) | % | ||||||||||||||||||
Total retail units sold | 3,367 | 4,052 | (685) | (16.9) | % | ||||||||||||||||||
Average selling price per retail unit | |||||||||||||||||||||||
New vehicle retail | $ | 92,346 | $ | 89,281 | $ | 3,065 | 3.4 | % | |||||||||||||||
Pre-owned vehicle retail | 65,555 | 70,401 | (4,846) | (6.9) | % | ||||||||||||||||||
Average gross profit per retail unit (excluding LIFO) | |||||||||||||||||||||||
New vehicle retail | $ | 12,552 | $ | 17,954 | $ | (5,402) | (30.1) | % | |||||||||||||||
Pre-owned vehicle retail | 13,461 | 18,036 | (4,575) | (25.4) | % | ||||||||||||||||||
Finance and insurance | 5,029 | 5,069 | (40) | (0.8) | % |
Six months ended June 30, | |||||||||||||||||||||||
(In thousands, except vehicle and per vehicle data) | 2023 | 2022 | Change | % Change | |||||||||||||||||||
Revenues | |||||||||||||||||||||||
New vehicle retail | $ | 359,499 | $ | 436,622 | $ | (77,123) | (17.7) | % | |||||||||||||||
Pre-owned vehicle retail | 175,766 | 228,930 | (53,164) | (23.2) | % | ||||||||||||||||||
Vehicle wholesale | 3,424 | 12,228 | (8,804) | (72.0) | % | ||||||||||||||||||
Finance and insurance | 34,623 | 43,017 | (8,394) | (19.5) | % | ||||||||||||||||||
Service, body and parts and other | 30,724 | 28,916 | 1,808 | 6.3 | % | ||||||||||||||||||
Total revenues | $ | 604,036 | $ | 749,713 | $ | (145,677) | (19.4) | % | |||||||||||||||
Gross profit | |||||||||||||||||||||||
New vehicle retail | $ | 48,024 | $ | 88,908 | $ | (40,884) | (46.0) | % | |||||||||||||||
Pre-owned vehicle retail | 35,813 | 57,020 | (21,207) | (37.2) | % | ||||||||||||||||||
Vehicle wholesale | 18 | (185) | 203 | NM | |||||||||||||||||||
Finance and insurance | 33,120 | 41,477 | (8,357) | (20.1) | % | ||||||||||||||||||
Service, body and parts and other | 16,026 | 14,540 | 1,486 | 10.2 | % | ||||||||||||||||||
LIFO | (1,387) | (4,326) | 2,939 | (67.9) | % | ||||||||||||||||||
Total gross profit | $ | 131,614 | $ | 197,434 | $ | (65,820) | (33.3) | % | |||||||||||||||
Gross profit margins | |||||||||||||||||||||||
New vehicle retail | 13.4 | % | 20.4 | % | (700) | bps | |||||||||||||||||
Pre-owned vehicle retail | 20.4 | % | 24.9 | % | (450) | bps | |||||||||||||||||
Vehicle wholesale | 0.5 | % | (1.5) | % | 200 | bps | |||||||||||||||||
Finance and insurance | 95.7 | % | 96.4 | % | (70) | bps | |||||||||||||||||
Service, body and parts and other | 52.2 | % | 50.3 | % | 190 | bps | |||||||||||||||||
Total gross profit margin | 21.8 | % | 26.3 | % | (450) | bps | |||||||||||||||||
Total gross profit margin (excluding LIFO) | 22.0 | % | 26.9 | % | (490) | bps | |||||||||||||||||
Retail units sold | |||||||||||||||||||||||
New vehicle retail | 3,959 | 4,725 | (766) | (16.2) | % | ||||||||||||||||||
Pre-owned vehicle retail | 2,692 | 3,075 | (383) | (12.5) | % | ||||||||||||||||||
Total retail units sold | 6,651 | 7,800 | (1,149) | (14.7) | % | ||||||||||||||||||
Average selling price per retail unit | |||||||||||||||||||||||
New vehicle retail | $ | 90,806 | $ | 92,407 | $ | (1,601) | (1.7) | % | |||||||||||||||
Pre-owned vehicle retail | 65,292 | 74,449 | (9,157) | (12.3) | % | ||||||||||||||||||
Average gross profit per retail unit (excluding LIFO) | |||||||||||||||||||||||
New vehicle retail | $ | 12,189 | $ | 18,816 | $ | (6,627) | (35.2) | % | |||||||||||||||
Pre-owned vehicle retail | 13,347 | 18,543 | (5,196) | (28.0) | % | ||||||||||||||||||
Finance and insurance | 4,980 | 5,318 | (338) | (6.4) | % |
Three months ended June 30, | |||||||||||||||||||||||
(In thousands, except vehicle and per vehicle data) | 2023 | 2022 | Change | % Change | |||||||||||||||||||
Revenues | |||||||||||||||||||||||
New vehicle retail | $ | 171,812 | $ | 219,186 | $ | (47,374) | (21.6) | % | |||||||||||||||
Pre-owned vehicle retail | 86,577 | 112,430 | (25,853) | (23.0) | % | ||||||||||||||||||
Vehicle wholesale | 1,646 | 5,704 | (4,058) | (71.1) | % | ||||||||||||||||||
Finance and insurance | 16,531 | 21,382 | (4,851) | (22.7) | % | ||||||||||||||||||
Service, body and parts and other | 14,340 | 14,849 | (509) | (3.4) | % | ||||||||||||||||||
Total revenues | $ | 290,906 | $ | 373,551 | $ | (82,645) | (22.1) | % | |||||||||||||||
Gross profit | |||||||||||||||||||||||
New vehicle retail | $ | 23,166 | $ | 44,077 | $ | (20,911) | (47.4) | % | |||||||||||||||
Pre-owned vehicle retail | 17,585 | 28,803 | (11,218) | (38.9) | % | ||||||||||||||||||
Vehicle wholesale | 36 | (130) | 166 | NM | |||||||||||||||||||
Finance and insurance | 15,767 | 20,540 | (4,773) | (23.2) | % | ||||||||||||||||||
Service, body and parts and other | 7,219 | 7,193 | 26 | 0.4 | % | ||||||||||||||||||
LIFO | (76) | (1,866) | 1,790 | (95.9) | % | ||||||||||||||||||
Total gross profit | $ | 63,697 | $ | 98,618 | $ | (34,921) | (35.4) | % | |||||||||||||||
Gross profit margins | |||||||||||||||||||||||
New vehicle retail | 13.5 | % | 20.1 | % | (660) | bps | |||||||||||||||||
Pre-owned vehicle retail | 20.3 | % | 25.6 | % | (530) | bps | |||||||||||||||||
Vehicle wholesale | 2.2 | % | (2.3) | % | 450 | bps | |||||||||||||||||
Finance and insurance | 95.4 | % | 96.1 | % | (70) | bps | |||||||||||||||||
Service, body and parts and other | 50.3 | % | 48.4 | % | 190 | bps | |||||||||||||||||
Total gross profit margin | 21.9 | % | 26.4 | % | (450) | bps | |||||||||||||||||
Total gross profit margin (excluding LIFO) | 21.9 | % | 26.9 | % | (500) | bps | |||||||||||||||||
Retail units sold | |||||||||||||||||||||||
New vehicle retail | 1,836 | 2,455 | (619) | (25.2) | % | ||||||||||||||||||
Pre-owned vehicle retail | 1,305 | 1,597 | (292) | (18.3) | % | ||||||||||||||||||
Total retail units sold | 3,141 | 4,052 | (911) | (22.5) | % | ||||||||||||||||||
Average selling price per retail unit | |||||||||||||||||||||||
New vehicle retail | $ | 93,580 | $ | 89,281 | $ | 4,299 | 4.8 | % | |||||||||||||||
Pre-owned vehicle retail | 66,342 | 70,401 | (4,059) | (5.8) | % | ||||||||||||||||||
Average gross profit per retail unit (excluding LIFO) | |||||||||||||||||||||||
New vehicle retail | $ | 12,744 | $ | 17,954 | $ | (5,210) | (29.0) | % | |||||||||||||||
Pre-owned vehicle retail | 13,566 | 18,036 | (4,470) | (24.8) | % | ||||||||||||||||||
Finance and insurance | 5,020 | 5,069 | (49) | (1.0) | % |
Six months ended June 30, | |||||||||||||||||||||||
(In thousands, except vehicle and per vehicle data) | 2023 | 2022 | Change | % Change | |||||||||||||||||||
Revenues | |||||||||||||||||||||||
New vehicle retail | $ | 339,778 | $ | 436,622 | $ | (96,844) | (22.2) | % | |||||||||||||||
Pre-owned vehicle retail | 168,538 | 228,930 | (60,392) | (26.4) | % | ||||||||||||||||||
Vehicle wholesale | 3,354 | 12,228 | (8,874) | (72.6) | % | ||||||||||||||||||
Finance and insurance | 32,660 | 43,017 | (10,357) | (24.1) | % | ||||||||||||||||||
Service, body and parts and other | 29,289 | 28,915 | 374 | 1.3 | % | ||||||||||||||||||
Total revenues | $ | 573,619 | $ | 749,712 | $ | (176,093) | (23.5) | % | |||||||||||||||
Gross profit | |||||||||||||||||||||||
New vehicle retail | $ | 45,502 | $ | 88,908 | $ | (43,406) | (48.8) | % | |||||||||||||||
Pre-owned vehicle retail | 34,257 | 57,020 | (22,763) | (39.9) | % | ||||||||||||||||||
Vehicle wholesale | 23 | (186) | 209 | NM | |||||||||||||||||||
Finance and insurance | 31,233 | 41,478 | (10,245) | (24.7) | % | ||||||||||||||||||
Service, body and parts and other | 15,251 | 14,540 | 711 | 4.9 | % | ||||||||||||||||||
LIFO | (1,387) | (4,326) | 2,939 | (67.9) | % | ||||||||||||||||||
Total gross profit | $ | 124,879 | $ | 197,432 | $ | (72,553) | (36.7) | % | |||||||||||||||
Gross profit margins | |||||||||||||||||||||||
New vehicle retail | 13.4 | % | 20.4 | % | (700) | bps | |||||||||||||||||
Pre-owned vehicle retail | 20.3 | % | 24.9 | % | (460) | bps | |||||||||||||||||
Vehicle wholesale | 0.7 | % | (1.5) | % | 220 | bps | |||||||||||||||||
Finance and insurance | 95.6 | % | 96.4 | % | (80) | bps | |||||||||||||||||
Service, body and parts and other | 52.1 | % | 50.3 | % | 180 | bps | |||||||||||||||||
Total gross profit margin | 21.8 | % | 26.3 | % | (450) | bps | |||||||||||||||||
Total gross profit margin (excluding LIFO) | 22.0 | % | 26.9 | % | (490) | bps | |||||||||||||||||
Retail units sold | |||||||||||||||||||||||
New vehicle retail | 3,677 | 4,725 | (1,048) | (22.2) | % | ||||||||||||||||||
Pre-owned vehicle retail | 2,553 | 3,075 | (522) | (17.0) | % | ||||||||||||||||||
Total retail units sold | 6,230 | 7,800 | (1,570) | (20.1) | % | ||||||||||||||||||
Average selling price per retail unit | |||||||||||||||||||||||
New vehicle retail | $ | 92,406 | $ | 92,407 | $ | (1) | — | % | |||||||||||||||
Pre-owned vehicle retail | 66,016 | 74,449 | (8,433) | (11.3) | % | ||||||||||||||||||
Average gross profit per retail unit (excluding LIFO) | |||||||||||||||||||||||
New vehicle retail | $ | 12,438 | $ | 18,816 | $ | (6,378) | (33.9) | % | |||||||||||||||
Pre-owned vehicle retail | 13,465 | 18,543 | (5,078) | (27.4) | % | ||||||||||||||||||
Finance and insurance | 5,013 | 5,318 | (305) | (5.7) | % |
Three months ended June 30, | ||||||||||||||||||||||||||
Overall | 2023 | 2022 | Change | % Change | ||||||||||||||||||||||
F&I per unit | $ | 5,029 | $ | 5,069 | $ | (40) | (0.8) | % | ||||||||||||||||||
F&I penetration rate | 62.7 | % | 66.1 | % | (340) | bps | ||||||||||||||||||||
Same store | ||||||||||||||||||||||||||
F&I per unit | $ | 5,020 | $ | 5,069 | $ | (49) | (1.0) | % | ||||||||||||||||||
F&I penetration rate | 62.7 | % | 66.1 | % | (340) | bps |
Six months ended June 30, | ||||||||||||||||||||||||||
Overall | 2023 | 2022 | Change | % Change | ||||||||||||||||||||||
F&I per unit | $ | 4,980 | $ | 5,318 | $ | (338) | (6.4) | % | ||||||||||||||||||
F&I penetration rate | 62.0 | % | 65.6 | % | (360) | bps | ||||||||||||||||||||
Same store | ||||||||||||||||||||||||||
F&I per unit | $ | 5,013 | $ | 5,318 | $ | (305) | (5.7) | % | ||||||||||||||||||
F&I penetration rate | 62.0 | % | 65.6 | % | (360) | bps |
Three months ended June 30, | |||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | Change | % Change | |||||||||||||||||||
Depreciation and amortization | $ | 4,459 | $ | 4,052 | $ | 407 | 10.0 | % | |||||||||||||||
Six months ended June 30, | |||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | Change | % Change | |||||||||||||||||||
Depreciation and amortization | $ | 8,862 | $ | 8,136 | $ | 726 | 8.9 | % |
Three months ended June 30, | |||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | Change | % Change | |||||||||||||||||||
SG&A expense | $ | 50,480 | $ | 61,605 | $ | (11,125) | (18.1) | % | |||||||||||||||
SG&A as percentage of gross profit | 74.5 | % | 62.5 | % | 1,200 | bps | |||||||||||||||||
Six months ended June 30, | |||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | Change | % Change | |||||||||||||||||||
SG&A expense | $ | 104,012 | $ | 117,709 | $ | (13,697) | (11.6) | % | |||||||||||||||
SG&A as percentage of gross profit | 79.0 | % | 59.6 | % | 1,941 | bps |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Stock-based compensation | $ | 842 | $ | 729 | $ | 1,639 | $ | 1,252 |
Three months ended June 30, | |||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | Change | % Change | |||||||||||||||||||
Floor plan interest expense | $ | 5,835 | $ | 1,466 | $ | 4,369 | 298.0 | % | |||||||||||||||
Six months ended June 30, | |||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | Change | % Change | |||||||||||||||||||
Floor plan interest expense | $ | 11,366 | $ | 2,442 | $ | 8,924 | 365.4 | % |
Three months ended June 30, | |||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | Change | % Change | |||||||||||||||||||
Other interest expense | $ | 2,083 | $ | 1,919 | $ | 164 | 8.6 | % | |||||||||||||||
Six months ended June 30, | |||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | Change | % Change | |||||||||||||||||||
Other interest expense | $ | 3,783 | $ | 3,855 | $ | (72) | (1.9) | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Change in fair value of warrant liabilities | $ | — | $ | 9,652 | $ | 856 | $ | 11,192 |
Three months ended June 30, | |||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | Change | % Change | |||||||||||||||||||
Income tax expense | $ | (1,306) | $ | (7,383) | $ | 6,077 | (82.3) | % | |||||||||||||||
Effective tax rate | 26.8 | % | 18.8 | % | |||||||||||||||||||
Six months ended June 30, | |||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | Change | % Change | |||||||||||||||||||
Income tax expense | (1,163) | $ | (16,356) | $ | 15,193 | (92.9) | % | ||||||||||||||||
Effective tax rate | 26.2 | % | 21.4 | % |
Six months ended June 30, | ||||||||||||||
(In thousands) | 2023 | 2022 | ||||||||||||
Net income | $ | 3,284 | $ | 60,128 | ||||||||||
Non-cash adjustments | 10,793 | (1,323) | ||||||||||||
Changes in operating assets and liabilities | (3,372) | (90,550) | ||||||||||||
Net cash provided by (used in) operating activities | 10,705 | (31,745) | ||||||||||||
Net cash used in investing activities | (66,042) | (12,712) | ||||||||||||
Net cash provided by financing activities | 17,823 | 51,696 | ||||||||||||
Net (decrease) increase in cash | $ | (37,514) | $ | 7,239 |
Six months ended June 30, | ||||||||||||||||||||
(In thousands) | 2023 | 2022 | Change | |||||||||||||||||
Net cash provided by (used in) operating activities, as reported | $ | 10,705 | $ | (31,745) | $ | 42,450 | ||||||||||||||
Net (repayments) borrowings on floor plan notes payable | (44,293) | 89,487 | (133,780) | |||||||||||||||||
Minus borrowings on floor plan notes payable associated with acquired new inventory | (4,271) | — | (4,271) | |||||||||||||||||
Plus net increase to floor plan offset account | 40,000 | — | 40,000 | |||||||||||||||||
Net cash provided by operating activities, as adjusted | $ | 2,141 | $ | 57,742 | $ | (55,601) |
3.1 | |||||
3.2 | |||||
31.1* | |||||
31.2* | |||||
32.1** | |||||
32.2** | |||||
101* | The following financial statements from the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2023, formatted in inline XBRL, include: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), (iii) Condensed Consolidated Statements of Stockholders’ Equity, (iv) Condensed Consolidated Statements of Cash Flows and (v) the Notes to the Condensed Consolidated Financial Statements. | ||||
104* | Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101) |
Lazydays Holdings, Inc. | |||||
Dated July 28, 2023 | /s/ Kelly A. Porter | ||||
Kelly A. Porter | |||||
Chief Financial Officer | |||||
Principal Financial and Accounting Officer |
Date: July 28, 2023 | /s/ JOHN F. NORTH III | ||||
John F. North III | |||||
Chief Executive Officer |
Date: July 28, 2023 | /s/ KELLY A. PORTER | ||||
Kelly A. Porter | |||||
Chief Financial Officer |
/s/ JOHN F. NORTH III | |||||
John F. North III | |||||
Chief Executive Officer | |||||
Date: July 28, 2023 |
/s/ KELLY A. PORTER | |||||
Kelly A. Porter | |||||
Chief Financial Officer | |||||
Date: July 28, 2023 |
BUSINESS ORGANIZATION AND NATURE OF OPERATIONS |
6 Months Ended |
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Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS ORGANIZATION AND NATURE OF OPERATIONS | BUSINESS ORGANIZATION AND NATURE OF OPERATIONS Lazydays RV Center, Inc., the operating subsidiary of Lazydays Holdings, Inc., operates recreational vehicle (“RV”) dealerships in twenty locations including two in the state of Florida, two in the state of Colorado, two in the state of Arizona, three in the state of Tennessee, two in the state of Minnesota, two in the state of Indiana, one in the state of Oregon, one in the state of Washington, one in the state of Wisconsin, one in the state of Oklahoma, one in the state of Nevada and one in the state of Iowa. When used in these notes, unless otherwise indicated or the context suggests otherwise, references to “the Company”, “our Company”, “Lazydays RV Center, Inc.”, “Lazydays RV”, “we”, “us”, or “our” refer to Lazydays Holdings, Inc and its wholly-owned subsidiaries. Lazydays RV has also operated a dedicated service center location near Houston, Texas since early 2020, which was expanded to include a sales center in the fourth quarter in 2022. Lazydays RV sells and services new and pre-owned recreational vehicles and sells related parts and accessories. We also arrange financing and extended service contracts for vehicle sales through third-party financing sources and extended warranty providers. We also offer our customers such ancillary services such as overnight campground and restaurant facilities.
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BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES |
6 Months Ended |
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Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES | BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES Basis of Presentation These Condensed Consolidated Financial Statements contain unaudited information as of June 30, 2023, and for the three and six months ended June 30, 2023 and 2022. The unaudited interim financial statements have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain disclosures required by accounting principles generally accepted in the United States of America (“U.S.”) for annual financial statements are not included herein. In management’s opinion, these unaudited financial statements reflect all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the information when read in conjunction with our 2022 audited Consolidated Financial Statements and the related notes thereto. The financial information as of December 31, 2022 is derived from our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 1, 2023. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year. The Condensed Consolidated Financial Statements include the accounts of Lazydays Holdings, Inc. and Lazy Days RV Center, Inc. and its wholly owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. Critical Accounting Policies Our critical accounting policies have not materially changed during the six months ended June 30, 2023 from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022. Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. These reclassifications had no effect on the previously reported net income.
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NEW ACCOUNTING PRONOUNCEMENTS |
6 Months Ended |
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Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS Adopted In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). This standard requires contract assets and contract liabilities, such as certain receivables and deferred revenue, acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. Generally, this new guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree instead of recording those balances at fair value. This standard should be applied prospectively to acquisitions occurring after the effective date. The adoption of ASU 2021-08 on January 1, 2023 did not have any effect on our condensed consolidated financial statements. Not Yet Adopted In August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The update simplifies the accounting for convertible debt instruments and convertible preferred stock by reducing the number of accounting models and limiting the number of embedded conversion features separately recognized from the primary contract. The guidance also includes targeted improvements to the disclosures for convertible instruments and earnings per share. ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. We are currently evaluating the impact that this new standard will have on our consolidated financial statements.
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BUSINESS COMBINATIONS |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS During the six months ended June 30, 2023, we completed the following acquisition: •February 16, 2023 - Findlay RV (Findlay) in Las Vegas, Nevada (the “Findlay Acquisition”) Revenue and income from operations contributed by the 2023 acquisition subsequent to the date of acquisition were as follows:
The following tables summarize the consideration paid and the preliminary purchase price allocation for identified assets acquired and liabilities assumed as of the acquisition date for the Findlay Acquisition:
We accounted for the Findlay Acquisition as a business combination, which requires us to record the assets acquired and liabilities assumed at fair value as of the acquisition date. The preliminary fair values of the assets acquired and liabilities assumed, which are presented in the table above, and the related preliminary acquisition accounting are based on management’s estimates and assumptions, as well as information compiled by management. Our estimates and assumptions are subject to change during the measurement period, not to exceed one year from the acquisition date. Goodwill represents the excess of the purchase price over the estimated fair value assigned to tangible and identifiable intangible assets acquired and liabilities assumed. The primary items that generated the goodwill are the value of the synergies between us and the acquired businesses and the growth and operational improvements that drive profitability growth, neither of which qualify for recognition as a separately identified intangible asset. We expect substantially all of the goodwill related to the Findlay Acquisition completed in 2023 to be deductible for federal income tax purposes. The following unaudited pro forma financial information presents consolidated information as though the acquisitions of Dave’s Claremore RV in 2022 and Findlay had been consummated on January 1, 2022:
These amounts have been adjusted to eliminate business combination expenses, the incremental depreciation and amortization associated with the preliminary purchase price allocation as well as the income taxes for the previously un-taxed acquired entities to determine pro forma net (loss) income.
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INVENTORIES |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES Vehicle and parts inventories are recorded at the lower of cost or net realizable value, with cost determined by the last-in, first-out (“LIFO”) method. Cost includes purchase costs, reconditioning costs, dealer-installed accessories and freight. For vehicles accepted as trade-ins, the cost is the fair value of such pre-owned vehicles at the time of the trade-in. Other inventory includes parts and accessories, as well as retail travel and leisure specialty merchandise, and is recorded at the lower of cost or net realizable value with cost determined by LIFO method. Inventories consisted of the following:
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GOODWILL AND INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill were as follows (in thousands):
Intangible Assets Detail of Intangible assets was as follows:
Amortization expense related to Intangible assets was as follows:
Future amortization of amortizable intangible assets is as follows:
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ASSET IMPAIRMENT |
6 Months Ended |
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Jun. 30, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET IMPAIRMENT | ASSET IMPAIRMENTIn the first quarter of 2023, we recorded an asset impairment charge totaling $0.6 million as a component of Selling, general and administrative expenses related to capitalized software for an IT project that we decided not to utilize. $0.5 million had been recorded in Prepaid and other assets on our Condensed Consolidated Balance Sheets at December 31, 2022. The remainder was recorded in Selling, general and administrative expenses during the first quarter of 2023. |
LEASES |
6 Months Ended |
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Jun. 30, 2023 | |
Lessee, Operating Lease, Description [Abstract] | |
LEASES | LEASES We lease property, equipment and billboards throughout the U.S. primarily under operating leases. The related right-of-use (“ROU”) assets for these operating leases are included in operating lease right-of-use assets. Leases with lease terms of 12 months or less are expensed on a straight-line basis over the lease term and are not recorded in the Condensed Consolidated Balance Sheets. Most leases include one or more options to renew, with renewal terms that can extend the lease term up to 50 years (some leases include multiple renewal periods). The exercise of lease renewal options is at our sole discretion. In addition, some of our lease agreements include rental payments adjusted periodically for inflation. Our lease agreements neither contain any residual value guarantees nor impose any significant restrictions or covenants. There were no new significant lease additions or terminations during the three and six months ended June 30, 2023.
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DEBT |
6 Months Ended |
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Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT M&T Financing Agreement On February 21, 2023, we amended our $369 million Senior Secured Credit Facility with M&T Bank. The material provisions of the amendment were to (i) increase the capacity under the Floor Plan Line of Credit to up to $525.0 million from $327.0 million and increase the capacity under the Revolving Credit Facility to up to $50.0 million from $25.0 million; (ii) remove the mortgage loan facility (“Mortgage Loan Facility”) and M&T term loan facility (the “M&T Term Loan Facility”); (iii) extend the term of the M&T floor plan line of credit (the “Floor Plan Line of Credit”) and the revolving credit facility (the “Revolving Credit Facility”) to February 21, 2027; (iv) lower interest rates on the Floor Plan Line of Credit and the Revolving Credit Facility; and (v) remove certain guarantors. In the first quarter of 2023, at the time of the amendment, we paid off the $5.4 million outstanding on the Mortgage Loan Facility and the $6.7 million outstanding on the Term Loan Facility. At June 30, 2023, there was $346.1 million outstanding on the Floor Plan Line of Credit at an interest rate of 7.13% and $45.0 million outstanding on the Revolving Credit Facility at an interest rate of 7.36%. We were in compliance with all financial and restrictive covenants at June 30, 2023. The Floor Plan Line of Credit bears interest at: (a) 30-day SOFR plus an applicable margin of 1.90% to 2.05% based on the total net leverage ratio (as defined in the new M&T Facility) or (b) the Base Rate plus a margin of 0.90% to 1.05% based on the total net leverage ratio (as defined in the new M&T Facility). Base Rate means, for any day, the fluctuating rate per annum equal to the highest of: (a) the Prime Rate for such day, (b) the Federal Funds Rate in effect on such day plus 50 Basis Points, and (c) the one-month Adjusted Term SOFR Rate, determined on a daily basis, plus 100 Basis Points. The Floor Plan Line of Credit is also subject to an annual unused commitment fee at 0.15% of the average daily unused portion of the Floor Plan. The M&T Revolving Credit facility bears interest at: (a) 30-day SOFR plus an applicable margin of 2.15% to 2.90% based on the total net leverage ratio (as defined in the new M&T Facility) or (b) the Base Rate plus a margin of 1.15% to 1.90% based on the total net leverage ratio (as defined in the new M&T Facility). Base Rate means, for any day, the fluctuating rate per annum equal to the highest of: (a) the Prime Rate for such day, (b) the Federal Funds Rate in effect on such day plus 50 Basis Points, and (c) the one-month Adjusted Term SOFR Rate, determined on a daily basis, plus 100 Basis Points. The Revolving Credit facility is also subject to a quarterly unused commitment fee at 0.15% of the average daily unused portion of the Credit facility.
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REVENUE AND CONCENTRATIONS |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE AND CONCENTRATIONS | REVENUE AND CONCENTRATIONS Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to customers at the expected amount we are entitled to for such goods and services. Taxes collected on revenue producing transactions are excluded from revenue in the Unaudited Condensed Consolidated Statements of Operations. Revenue from the sale of vehicle contracts is recognized at a point in time on delivery, transfer of title and completion of financing arrangements. Revenue from the sale of parts, accessories, and related service is recognized as services and parts are delivered or as a customer approves elements of the completion of service. Revenue from the sale of parts, accessories, and related service is recognized in Service, body and parts and other revenue in the Condensed Consolidated Statements of Operations. Charge-Backs We receive commissions from the sale of insurance and vehicle service contracts to customers. In addition, we arrange financing for customers through various financial institutions and receive commissions. We may be charged back (“charge-backs”) for financing fees, insurance or vehicle service contract commissions in the event of early termination of the contracts by our customers. The revenues from financing fees and commissions are recorded at the time of the sale of the vehicle and an allowance for future charge-backs is established based on historical operating results and the termination provision of the applicable contracts. The estimates for future chargebacks require judgment by management, and as a result, there is an element of risk associated with these revenue streams. We have an accrual for charge-backs which totaled $8.8 million and $8.2 million at June 30, 2023 and December 31, 2022, respectively, and is included in Accrued expenses and other current liabilities in the accompanying Condensed Consolidated Balance Sheets. Revenue by State Revenues by state that generated 10% or more of revenues were as follows (unaudited):
These geographic concentrations increase the exposure to adverse developments related to competition, as well as economic, demographic and weather conditions. Vendor Concentrations Vendors representing 10% or more of our total RV and replacement parts purchases were as follows:
We are subject to dealer agreements with each manufacturer. The manufacturer is entitled to terminate the dealer agreement if we are in material breach of the agreement’s terms.
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EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE We compute basic and diluted earnings per share (“EPS”) by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. We are required, in periods in which we have net income, to calculate EPS using the two-class method. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders but does not require the presentation of basic and diluted EPS for securities other than common stock. The two-class method is required because our Series A convertible preferred stock (“Preferred Stock”) has the right to receive dividends or dividend equivalents should we declare dividends on our common stock as if such holder of the Preferred Stock had been converted to common stock. Under the two-class method, earnings for the period are allocated to the common and preferred stockholders taking into consideration Series A preferred stockholders participation in dividends on an as converted basis. The weighted-average number of common and preferred shares outstanding during the period is then used to calculate basic EPS for each class of shares. Diluted EPS is computed in the same manner as basic EPS except that the denominator is increased to include the number of contingently issuable share-based compensation awards that would have been outstanding unless those additional shares would have been anti-dilutive. For the diluted EPS computation, the treasury stock method is applied and compared to the two-class method and whichever method results in a more dilutive impact is utilized to calculate diluted EPS. In periods in which we have a net loss, basic loss per share is calculated by dividing the loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. The two-class method is not used because the Preferred Stock does not participate in losses. The following table summarizes net income attributable to common stockholders used in the calculation of basic and diluted income per common share:
The following common stock equivalent shares were excluded from the computation of the diluted income per share since their inclusion would have been anti-dilutive:
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COMMITMENTS AND CONTINGENCIES |
6 Months Ended |
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Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Lease Obligations Legal Matters We are party to multiple legal proceedings that arise in the ordinary course of business. We have certain insurance coverage and rights of indemnification. We do not believe that the ultimate resolution of these matters will have a material adverse effect on our business, results of operations, financial condition or cash flows. However, the results of these matters cannot be predicted with certainty and an unfavorable resolution of one or more of these matters could have a material adverse effect on our business, results of operations, financial condition or cash flows.
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PREFERRED STOCK |
6 Months Ended |
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Jun. 30, 2023 | |
Equity [Abstract] | |
PREFERRED STOCK | PREFERRED STOCK Our Preferred Stock is cumulative redeemable convertible preferred stock. Accordingly, it is classified as temporary equity and is shown net of issuance costs and the fair value of warrants issued in conjunction with the issuance of the Preferred Stock. Unpaid preferred dividends are accumulated, compounded at each quarterly dividend date and presented within the carrying value of the Preferred Stock until a dividend is declared by our Board of Directors. The Board declared a dividend payment on the Preferred Stock of $1.2 million for each of the quarters in the six-month period ended June 30, 2023. There was $1.2 million included in Dividends payable in the accompanying Condensed Consolidated Balance Sheets at June 30, 2023 and was paid on July 3, 2023.
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STOCKHOLDERS’ EQUITY |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY Stock Repurchase Program On September 13, 2021, our Board of Directors authorized the repurchase of up to $25 million of our common stock through December 31, 2024. On December 15, 2022, our Board of Directors authorized the repurchase of up to an additional $50 million of our common stock through December 31, 2024. These shares may be purchased from time-to-time in the open market at prevailing prices, in privately negotiated transactions or through block trades. Repurchases pursuant to the program were as follows:
All repurchased shares are included in Treasury stock on the Condensed Consolidated Balance Sheets. As of June 30, 2023 there was $63.4 million remaining available for future repurchases. Disgorgement of Short-Swing Profit During the first quarter of 2023, a significant shareholder bought and sold our common stock within a time period that was in violation of the short-swing profit rules and, accordingly, profit from the transactions totaling $0.6 million was paid to us and recorded as Additional paid-in capital on our Condensed Consolidated Balance Sheets.
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STOCK-BASED COMPENSATION |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock-based compensation is included in Selling, general and administrative expense on our Condensed Consolidated Statements of Operations and was as follows:
Unrecognized Stock-Based Compensation At June 30, 2023 the total unrecognized stock-based compensation was $0.4 million which is expected to be recognized over a weighted average period of 1.6 years. 2018 Long-Term Equity Incentive Plan Our 2018 Long-Term Equity Incentive Plan, as amended (the “2018 Plan”) provides for awards of options, stock appreciation rights, restricted stock, restricted stock units, warrants or other securities which may be convertible, exercisable or exchangeable for or into our common stock. As of June 30, 2023, there were 1,684,481 shares of common stock available to be issued under the 2018 Plan. Stock Options Stock option activity was as follows:
Restricted Stock Units Restricted stock unit activity was as follows:
(1) Includes inducement awards approved by the Compensation Committee of the Company’s Board of Directors. PIPE Warrants PIPE warrant activity was as follows:
Prefunded Warrants As of June 30, 2023, there were 300,357 perpetual non-redeemable prefunded warrants outstanding with an exercise price of $0.01 per share. There was no activity during the three and six months ended June 30, 2023.
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FAIR VALUE MEASUREMENTS |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Factors used in determining the fair value of our financial assets and liabilities are summarized into three broad categories: •Level 1 - quoted prices in active markets for identical securities; •Level 2 - other significant observable inputs, including quoted prices for similar securities, interest rates, prepayment spreads, credit risk; and •Level 3 - significant unobservable inputs, including our own assumptions in determining fair value. We determined the carrying value of Cash, Receivables, Accounts payable and Accrued expenses and other current liabilities approximate their fair values due to the short-term nature of their terms. There were no changes to our valuation techniques during the quarter ended June 30, 2023. Asset Impairment See Note 7 - Asset Impairment for discussion of an asset impairment charge recorded in the quarter ended March 31, 2023. There were no impairment charges for the quarter ended June 30, 2023. PIPE Warrants All of our remaining PIPE warrants were exercised or expired in the first quarter of 2023. Our PIPE warrants were recorded at fair value at the end of each reporting period and transaction date with changes in fair value recorded on our Condensed Consolidated Statements of Operations. The public PIPE warrants traded in active markets with sufficient trading volume to qualify as Level 1 financial instruments as they had observable market prices which were used to estimate the fair value. The private placement PIPE warrants were not traded in active markets, or were traded with insufficient volume and therefore represented Level 3 financial instruments that are valued using a Black-Scholes option-pricing model. The fair value of the PIPE warrant liability was as follows:
Level 3 Disclosures Changes in the Level 3 PIPE warrant liability were as follows:
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BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES (Policies) |
6 Months Ended |
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Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These Condensed Consolidated Financial Statements contain unaudited information as of June 30, 2023, and for the three and six months ended June 30, 2023 and 2022. The unaudited interim financial statements have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain disclosures required by accounting principles generally accepted in the United States of America (“U.S.”) for annual financial statements are not included herein. In management’s opinion, these unaudited financial statements reflect all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the information when read in conjunction with our 2022 audited Consolidated Financial Statements and the related notes thereto. The financial information as of December 31, 2022 is derived from our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 1, 2023. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year.
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Principles of Consolidation | The Condensed Consolidated Financial Statements include the accounts of Lazydays Holdings, Inc. and Lazy Days RV Center, Inc. and its wholly owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. |
Reclassifications | Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. These reclassifications had no effect on the previously reported net income.
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New Accounting Pronouncements Adopted and Not Yet Adopted | Adopted In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). This standard requires contract assets and contract liabilities, such as certain receivables and deferred revenue, acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. Generally, this new guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree instead of recording those balances at fair value. This standard should be applied prospectively to acquisitions occurring after the effective date. The adoption of ASU 2021-08 on January 1, 2023 did not have any effect on our condensed consolidated financial statements. Not Yet Adopted In August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The update simplifies the accounting for convertible debt instruments and convertible preferred stock by reducing the number of accounting models and limiting the number of embedded conversion features separately recognized from the primary contract. The guidance also includes targeted improvements to the disclosures for convertible instruments and earnings per share. ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. We are currently evaluating the impact that this new standard will have on our consolidated financial statements.
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BUSINESS COMBINATIONS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Pro Forma Financial Information | Revenue and income from operations contributed by the 2023 acquisition subsequent to the date of acquisition were as follows:
The following unaudited pro forma financial information presents consolidated information as though the acquisitions of Dave’s Claremore RV in 2022 and Findlay had been consummated on January 1, 2022:
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Schedule of Consideration Paid and Preliminary Purchase Price Allocations | The following tables summarize the consideration paid and the preliminary purchase price allocation for identified assets acquired and liabilities assumed as of the acquisition date for the Findlay Acquisition:
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Schedule of Fair Value of Assets Acquired and Liabilities Assumed |
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INVENTORIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories consisted of the following:
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The changes in the carrying amount of goodwill were as follows (in thousands):
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Schedule of Finite-Lived Intangible Assets | Detail of Intangible assets was as follows:
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Schedule of Indefinite-Lived Intangible Assets | Detail of Intangible assets was as follows:
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Schedule of Amortization Expense | Amortization expense related to Intangible assets was as follows:
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Schedule of Estimated Future Amortization Expense | Future amortization of amortizable intangible assets is as follows:
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REVENUE AND CONCENTRATIONS (Tables) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Concentration Risk Percentages | Revenues by state that generated 10% or more of revenues were as follows (unaudited):
Vendors representing 10% or more of our total RV and replacement parts purchases were as follows:
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EARNINGS PER SHARE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Income Attribute To Common Stockholders | The following table summarizes net income attributable to common stockholders used in the calculation of basic and diluted income per common share:
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Schedule of Antidilutive Securities Excluded From Computation of Earnings Per Share | The following common stock equivalent shares were excluded from the computation of the diluted income per share since their inclusion would have been anti-dilutive:
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STOCKHOLDERS’ EQUITY (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Repurchase Program | Repurchases pursuant to the program were as follows:
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STOCK-BASED COMPENSATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-Based Compensation | Stock-based compensation is included in Selling, general and administrative expense on our Condensed Consolidated Statements of Operations and was as follows:
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Schedule of Stock Option Activity | Stock option activity was as follows:
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Schedule of Schedule of Restricted Stock Unit Activity | Restricted stock unit activity was as follows:
(1) Includes inducement awards approved by the Compensation Committee of the Company’s Board of Directors.
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Schedule of Warrants Activity | PIPE warrant activity was as follows:
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FAIR VALUE MEASUREMENTS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Adjustments Warrant Liabilities | The fair value of the PIPE warrant liability was as follows:
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Schedule of Liabilities Measured at Fair Value | Changes in the Level 3 PIPE warrant liability were as follows:
|
BUSINESS COMBINATIONS- Schedule of Revenue and Loss From Operations (Details) - Findlay RV - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
|
Business Acquisition [Line Items] | ||
Revenue | $ 5,483 | $ 7,748 |
Income from operations | $ 370 | $ 300 |
BUSINESS COMBINATIONS- Schedule of Consideration Paid And Preliminary Purchase Price Allocations (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Business Acquisition [Line Items] | ||
Cash paid, net of cash acquired | $ 19,730 | $ 0 |
Findlay RV | ||
Business Acquisition [Line Items] | ||
Cash paid, net of cash acquired | $ 19,730 |
BUSINESS COMBINATIONS- Schedule of Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 89,128 | $ 83,460 | $ 80,318 |
Findlay RV | |||
Business Acquisition [Line Items] | |||
Inventories | 6,787 | ||
Prepaid expenses and other | 14 | ||
Property and equipment | 7,452 | ||
Goodwill | 5,479 | ||
Total assets acquired | 19,732 | ||
Accounts payable | 2 | ||
Net assets acquired | $ 19,730 |
BUSINESS COMBINATIONS- Schedule of Pro Forma Financial Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Business Combination and Asset Acquisition [Abstract] | ||||
Revenue | $ 316,129 | $ 387,398 | $ 613,353 | $ 779,255 |
Income before income taxes | 5,164 | 39,722 | 4,566 | 77,691 |
Net income | $ 3,756 | $ 32,235 | $ 3,362 | $ 61,081 |
INVENTORIES - Schedule of Inventories (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Inventory [Line Items] | ||
Inventory, gross | $ 412,041 | $ 399,703 |
Less: excess of current cost over LIFO | (22,209) | (20,822) |
Total | 389,832 | 378,881 |
New recreational vehicles | ||
Inventory [Line Items] | ||
Inventory, gross | 338,282 | 342,415 |
Pre-owned recreational vehicles | ||
Inventory [Line Items] | ||
Inventory, gross | 65,916 | 50,457 |
Parts, accessories and other | ||
Inventory [Line Items] | ||
Inventory, gross | $ 7,843 | $ 6,831 |
GOODWILL AND INTANGIBLE ASSETS - Schedule of Goodwill (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 83,460 | $ 80,318 |
Additions through acquisitions | 5,479 | 4,692 |
Measurement period adjustments related to prior acquisitions | 189 | (1,550) |
Goodwill, ending balance | $ 89,128 | $ 83,460 |
GOODWILL AND INTANGIBLE ASSETS- Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Amortizable intangible assets: | ||
Gross Carrying Amount | $ 76,025 | $ 76,025 |
Accumulated Amortization | 28,126 | 24,460 |
Net Asset Value | 47,899 | 51,565 |
Non-amortizable intangible assets: | ||
Intangible assets, gross | 106,125 | 106,125 |
Intangible assets, net | 77,999 | 81,665 |
Trade names and trademarks | ||
Non-amortizable intangible assets: | ||
Carrying amount | 30,100 | 30,100 |
Manufacturer relationships | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 65,400 | 65,400 |
Accumulated Amortization | 23,539 | 20,346 |
Net Asset Value | 41,861 | 45,054 |
Customer relationships | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 10,395 | 10,395 |
Accumulated Amortization | 4,443 | 3,993 |
Net Asset Value | 5,952 | 6,402 |
Non-compete agreements | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 230 | 230 |
Accumulated Amortization | 144 | 121 |
Net Asset Value | $ 86 | $ 109 |
GOODWILL AND INTANGIBLE ASSETS- Schedule of Amortization Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 1,834 | $ 1,808 | $ 3,667 | $ 3,615 |
GOODWILL AND INTANGIBLE ASSETS- Schedule of Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2023 | $ 3,666 | |
2024 | 7,332 | |
2025 | 7,264 | |
2026 | 6,585 | |
2027 | 6,274 | |
Thereafter | 16,778 | |
Net Asset Value | $ 47,899 | $ 51,565 |
ASSET IMPAIRMENT (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Asset Retirement Obligation Disclosure [Abstract] | ||
Impairment charges | $ 0.6 | |
Capitalized computer software | $ 0.5 |
LEASES (Details) |
6 Months Ended |
---|---|
Jun. 30, 2023
lease_renewal_option
| |
Lessee, Lease, Description [Line Items] | |
Number of lease renewal options | 1 |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, renewal term (in years) | 50 years |
REVENUE AND CONCENTRATIONS- Additional Information (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Accrued charge-backs | $ 8.8 | $ 8.2 |
EARNINGS PER SHARE- Schedule of Antidilutive Securities Excluded From Computation of Earnings Per Share (Details) - shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Share equivalents excluded from EPS (in shares) | 562,963 | 310,632 | 562,963 | 310,632 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Share equivalents excluded from EPS (in shares) | 243,958 | 245,032 | 243,958 | 245,032 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Share equivalents excluded from EPS (in shares) | 291,739 | 59,989 | 291,739 | 59,989 |
Shares issuable under the Employee Stock Purchase Plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Share equivalents excluded from EPS (in shares) | 27,266 | 5,611 | 27,266 | 5,611 |
PREFERRED STOCK (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Subsidiary, Sale of Stock [Line Items] | |||
Dividends on series A convertible preferred stock | $ 1,197 | $ 1,210 | |
Dividends on series A convertible preferred stock declared | 1,200 | $ 1,200 | |
Preferred Stock | |||
Subsidiary, Sale of Stock [Line Items] | |||
Dividends on series A convertible preferred stock | $ 1,200 |
STOCKHOLDERS’ EQUITY- Additional Information (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2023 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 15, 2022 |
Sep. 13, 2021 |
|
Equity, Class of Treasury Stock [Line Items] | |||||
Disgorgement of short-swing profits | $ 600,000 | $ 622,000 | $ 0 | ||
Share Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 50,000,000 | $ 25,000,000 | |||
Remaining authorized repurchase amount | $ 63,400,000 |
STOCKHOLDERS’ EQUITY- Schedule of Repurchase Program (Details) |
6 Months Ended |
---|---|
Jun. 30, 2023
$ / shares
shares
| |
Equity [Abstract] | |
Stock repurchase program (in shares) | shares | 9,433,000 |
Stock repurchase program average price (in dollars per share) | $ / shares | $ 11.56 |
Cumulative stock repurchases (in shares) | shares | 3,412,000 |
Cumulative stock repurchased, average price (in dollars per share) | $ / shares | $ 14.16 |
STOCK-BASED COMPENSATION- Schedule of Stock-Based Compensation (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Share-Based Payment Arrangement [Abstract] | ||||
Stock-based compensation | $ 842 | $ 729 | $ 1,639 | $ 1,252 |
STOCK-BASED COMPENSATION- Additional Information (Details) $ / shares in Units, $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
$ / shares
shares
| |
Class of Warrant or Right [Line Items] | |
Unrecognized stock based compensation | $ | $ 0.4 |
Unrecognized weighted period (in years) | 1 year 7 months 6 days |
Non-Redeemable Pre-Funded Warrant | |
Class of Warrant or Right [Line Items] | |
Number of warrants (in shares) | 300,357 |
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ / shares | $ 0.01 |
2018 Long-Term Equity Incentive Plan | |
Class of Warrant or Right [Line Items] | |
Common stock, capital shares reserved for future issuance (in shares) | 1,684,481 |
STOCK-BASED COMPENSATION- Schedule of Restricted Stock Unit Activity (Details) - Restricted stock units |
6 Months Ended |
---|---|
Jun. 30, 2023
$ / shares
shares
| |
Number of Restricted Stock Units(1) | |
Outstanding at the beginning of the period (in shares) | shares | 207,822 |
Granted (in shares) | shares | 291,739 |
Vested (in shares) | shares | (46,752) |
Outstanding at the end of the period (in shares) | shares | 452,809 |
Weighted-Average Grant Date Fair Value | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 14.98 |
Granted (in dollars per share) | $ / shares | 12.2 |
Vested (in dollars per share) | $ / shares | 16.47 |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 12.62 |
STOCK-BASED COMPENSATION-Schedule of Warrants Activity (Details) - PIPE Warrants |
6 Months Ended |
---|---|
Jun. 30, 2023
$ / shares
shares
| |
Shares Underlying Warrants | |
Warrants, outstanding at the beginning of the period (in shares) | shares | 2,865,068 |
Cancelled or Expired (in shares) | shares | (208,912) |
Exercised (in shares) | shares | (2,656,156) |
Warrants, outstanding at the end of the period (in shares) | shares | 0 |
Weighted Average Exercise Price | |
Warrants, Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 11.50 |
Weighted Average Exercise Price Cancelled or Expired (in dollars per share) | $ / shares | 11.50 |
Weighted Average Exercise Price Exercised (in dollars per share) | $ / shares | 11.50 |
Warrants, Outstanding at the end of the period (in dollars per share) | $ / shares | $ 0 |
Fair Value Measurements and Disclosures - Narrative (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Fair Value Disclosures [Abstract] | |||
Impairment charges | $ 0 | $ 538,000 | $ 0 |
FAIR VALUE Measurements- Schedule of Liabilities Measured at Fair Value (Details) - Private Warrants $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Fair value beginning balance | $ 164 |
Measurement adjustment | (164) |
Fair value ending balance | $ 0 |
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