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More About Lazydays Holdings (LAZY)

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Category:  Lazydays (LAZY)
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Date: 18 March 2021
Stock price of LAZY 
: $32.44
Market Capital Of Lazydays (LAZY): $193 million
We take a more detailed look at Lazydays Holdings (LAZY) a seller of recreation vehicles (RV).  The company believes that based on industry research and management’s estimates, it operates one of the world’s largest RV dealerships, measured in terms of  on-site  inventory,  located  on  126  acres  outside  Tampa,  Florida.
Lazydays (LAZY) logo
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Lazydays offers one of the largest selections of leading RV brands in the nation featuring more than 3,000 new and pre-owned RVs. The Company has more than 400 service bays across all locations and has RV parts and accessories stores at all locations. Lazydays also has access to two on-site campgrounds with over 700 RV campsites. "

More About Lazydays Holdings

The  Company  operates  Recreational  Vehicle  (“RV”)  dealerships  and  offers  a  comprehensive  portfolio  of  products  and  services  for  RV  owners  and outdoor  enthusiasts.  The   company  generates  revenue  by  providing  RV  owners  and  outdoor  enthusiasts  a  full  spectrum  of  products:  RV  sales,  RV-parts  and services,  financing  and insurance  products, third-party  protection plans, after-market  parts and accessories, and RV camping facilities.  The Company provides these offerings through its Lazydays branded dealerships. Lazydays is known nationally as The RV Authority®, a registered trademark that has been consistently used by the Company in its marketing and branding communications since 2013.

The Company believes, based on industry research and management’s estimates, it operates one of the world’s largest RV dealerships, measured in terms of  on-site  inventory,  located  on  126  acres  outside  Tampa,  Florida.  The  Company  also  has  dealerships  located  at  The  Villages,  Florida;  Tucson,  Arizona; Minneapolis, Minnesota; Knoxville, Tennessee; and Loveland and Denver, Colorado. Lazydays also has a dedicated Service Center location near Houston, Texas which opened in February 2020. Lazydays offers one of the largest selections of leading RV brands in the nation featuring more than 3,000 new and pre-owned RVs. The Company has more than 400 service bays across all locations and has RV parts and accessories stores at all locations. Lazydays also has access to two on-site campgrounds with over 700 RV campsites. The Company employs over 900 people at its eight dealership and service locations. The Company’s locations are staffed with knowledgeable local team members, providing customers access to extensive RV expertise. The Company believes its locations are strategically located  in  key  RV  markets.  Based  on  information  collected  by  the  Company  from  reports  prepared  by  Statistical  Surveys,  these  key  RV  markets  (Florida, Colorado,  Arizona,  Minnesota,  Tennessee  and  Texas)  account  for  a  significant  portion  of  new  RV  units  sold  on  an  annual  basis  in  the  U.S.  The  Company’s dealerships in these key markets attract customers from all states, except Hawaii. 

​The  Company  attracts  new  customers  primarily  through  Lazydays  dealership  locations  as  well  as  digital  and  traditional  marketing  efforts.  Once  the Company acquires customers through a transaction, those customers become part of the Company’s customer database where the Company leverages customized customer relationship management (“CRM”) tools and analytics to actively engage, market and sell its products and services.
Lazydays RV sellers

Strengths of Lazydays 

The Iconic Brand. With over forty years of history dating back to 1976, Lazydays is an iconic, industry leading brand that we believe is synonymous with the RV lifestyle, and is known nationally as The RV Authority ® , a registered trademark. The trademark has been consistently used by the Company in its marketing and branding communications since 2013. Based on a research report prepared by Russell Research in November / December 2017, Lazydays is the second most well-known R.V. dealership brand among a national audience of non-Lazydays customers surveyed. According to the report, over 85% of Lazydays customers and over 80% of prospective customers surveyed believe that Lazydays is among the category leaders in the industry. The Company’s consistent quality, breadth and depth of offerings, as well as its comprehensive range of RV lifestyle resources, have resulted in the Company’s customers having loyalty to and trust in the Lazydays brands.

Comprehensive RV Products and Services. The Company is a provider of a comprehensive portfolio of RV products, services, third-party protection plans, and resources for RV enthusiasts. The Company represents the top manufacturers in the industry with more than 3,000 RVs available nationwide. Lazydays provides an extensive service and repair offering nationwide for all RV brands with more than 400 service bays staffed by certified technicians. The Company’s offerings are based on more than four decades of experience and feedback from RV enthusiasts.

Customer Experience. Lazydays’ target customers are RV enthusiasts who are seeking a lifestyle centered around the RV. Lazydays believes it has built its reputation on providing an outstanding customer experience with exceptional service and product expertise. One of the Company’s primary goals is to create “Customers for Life” by offering a unique purchasing experience that combines a large selection of RV inventory, the Company’s unique scenic facilities with multiple  amenities,  and  its  customer  focused,  process-oriented  approach  to  servicing  the  customer.  Building  a  welcoming  atmosphere  that  caters  to  the  RV enthusiast  community  is  an  intangible  element  critical  to  the  Company’s  success,  and  the  Company’s  philosophy  is  thoroughly  ingrained  in  and  continually reinforced  throughout  its  corporate  culture  at  every  level.  The  Company  believes  that  its  customer-focused  business  model  has  resulted  in  a  loyal,  stable  and growing customer base as well as a strong reputation within the RV community.

Customers Of Lazydays

The  RV  industry  is  characterized  by  RV  enthusiasts’  investment  in,  and  steadfast  commitment  to,  the  RV  lifestyle.  The  estimated  number  of  U.S. households that own an RV is approximately 9 million. Owners invest in insurance, extended service contracts, parts and accessories, roadside assistance and regular maintenance to protect and maintain their RVs. They typically invest in new accessories and the necessary installation costs as they upgrade their RVs. They also spend on services and resources as they plan, engage in, and return from their road trips. Furthermore, based on industry research and management’s estimates, the Company believes that RV owners   typically trade-in to buy another RV every four to five years. 

​Per the RV Industry Association’s (RVIA) December 2019 survey of manufacturers, total RV wholesale shipments ended 2019 with 406,070 units, down (16.0%)  compared  to  483,672  units  in  2018.  Towable  RVs  were  down  (15.6%)  at  359,441  units;  motorhome  shipments  were  down  (19.0%)  at  46,629  units, compared to 2018 shipment totals. Per the RVIA survey, 2019 shipments were the fourth highest of all time. Generally, used RVs are sold at a lower price level than comparable new RVs and the sale of used RVs has historically been more stable through business cycles than the sale of new vehicles.

Lazydays believes RV trips remain one of the least expensive types of vacation, allowing RV owners to travel more while spending less. RV trips offer savings on a variety of vacation costs, including, among others, airfare, lodging, pet boarding and dining. While fuel costs are a component of the overall vacation cost, the Company believes fluctuations in fuel prices are not a significant factor affecting a family’s decision to take RV trips. Based on RVIA information, the average annual mileage use of an RV is between 3,000 and 5,000 miles. In addition, Lazydays’ customer research indicates that customers are attracted to RV ownership based on the comfortable and convenient travel it provides

Competition Of Lazydays

The Company believes that the principal competitive factors in the RV industry are breadth and depth of product selection, value pricing, convenient dealership locations, quality technical services, customer service, and overall experience. The Company competes directly and/or indirectly with RV dealers, RV service providers, and RV parts and accessories retailers. One of the Company’s direct competitors, Camping World Holdings, Inc., is publicly listed on the New York Stock Exchange. Additional competitors may enter the businesses in which the Company currently operates.

Product Sourcing And Distribution Of Lazydays

Sourcing
New and Used RVs
The Company generally acquires new RVs for retail sale directly from the applicable manufacturer. Lazydays has strategic contractual arrangements with
many of the leading RV manufacturers. Lazydays maintains a central inventory management and purchasing group to manage and maintain adequate inventory levels  and  assortment.  RVs  are  transported  directly  from  a  manufacturer’s  facility  to  Lazydays  dealership  locations  via  various  third-party  transportation companies. Lazydays’ strategy is to partner with financially sound manufacturers that make quality products, have adequate manufacturing capacity and distribution, and maintain an appropriate product mix.

Lazydays’ supply arrangements with OEMs are typically governed by dealer agreements, which are customary in the RV industry. The Company’s dealer
agreements with OEMs are generally made on a location-by-location basis. The terms of these dealer agreements are typically subject to Lazydays, among other things, meeting all the requirements and conditions of the dealer agreement, maintaining certain sales objectives, performing services and repairs for owners of the manufacturer’s RVs that are still under manufacturer warranty, carrying the manufacturer’s parts and accessories needed to service and repair the manufacturer’s RVs in stock at all times, actively advertising and promoting the manufacturer’s RVs and indemnifying the manufacturer under certain circumstances. Lazydays’ dealer agreements generally designate a specific geographic territory, exclusive to Lazydays, provided that Lazydays meets the material obligations of the dealer agreement. Wholesale pricing is generally established on a model year basis and is subject to change at the manufacturer’s sole discretion. In certain cases, the manufacturer may also establish a suggested retail price, below which the Company cannot advertise that manufacturer’s RVs.

Lazydays generally acquires used RVs from customers, primarily through trade-ins, as well as through private sales, auctions, and other sources, and the
Company generally reconditions used RVs acquired for retail sale in its service operation. Used RVs that Lazydays does not sell at Lazydays dealership locations generally are sold at wholesale prices through auctions. Lazydays finances the purchase of substantially all of the Company’s new RV inventory from OEMs through a floor plan facility. Used vehicles may also be financed from time to time through the floor plan facility.

Parts and Accessories
The purchasing activities for the Company’s parts and accessories departments are focused on RV maintenance products, outdoor lifestyle products, RV
parts and accessories, such as, among other things, generators and electrical, satellite receivers and GPS systems, towing and hitching products and RV appliances, essential supplies and other products and services necessary or desirable for the RV lifestyle. The Company maintains central purchasing functions to manage inventory, product-planning, allocate merchandise to the Company’s dealership locations and oversee the replenishment of basic merchandise. The Company has no long-term purchase commitments. The Company leverages its scale to reduce costs related to purchasing certain equipment, supplies, and services through longstanding, continuous relationships with its largest vendors.

Marketing And Advertising Of Lazydays

The  Company  markets  its  product  offerings  through  integrated  marketing  campaigns  across  all  digital  and  traditional  marketing  disciplines,  with  an emphasis on digital. The Company’s marketing efforts include its website, paid and organic search efforts, email, social media, online blog and video content, television, radio, billboards, direct mail, and RV shows and rallies. Lazydays also has exclusive partnership and sponsorship relationships with various RV lifestyle properties. The Company currently has a segmented marketing database of over 3.9 million RV owners and prospects. Lazydays’ principal marketing strategy is to leverage its unique brand positioning, extensive product selection, exclusive benefits, and high quality customer experience among RV owners. As per a research report prepared by Russell Research in November / December 2017, over 70% of Lazydays customers and over 60% of prospective customers surveyed strongly agree that Lazydays provides a high quality customer experience.

The Company’s total website traffic for the year ended December 31, 2019 was approximately 9.4 million visitors with approximately 5.1 million unique visitors. The Lazydays website features over 3,000 new and preowned RVs, as well as information regarding Lazydays’ RV financing and insurance products, service capabilities, parts and accessories offerings, and other RV lifestyle content. The Company measures its marketing productivity and effectiveness on an ongoing basis to optimize marketing efforts

Trademarks And Other Intellectual Property of Lazydays

The Company owns a variety of registered trademarks and service marks related to its brands and its services, protection plans, products and resources,
including  Lazydays,  Lazydays  The  RV  Authority  ® ,  Lazydays  RV  Accessories  &  More,  Crown  Club,  and  Exit  10,  among  others.  The  Company also  owns numerous  domain  names,  including  Lazdays.com,  LazydaysRVSale.com,  LazydaysEvents.com,  LazydaysService.com,  RVPlace.com,  and  RVListings.com, among many others. The Company believes that its trademarks and other intellectual property have significant value and are important to its marketing efforts. The Company is not aware of any material pending claims of infringement or other challenges to the Company’s right to use its intellectual property in the United States or elsewhere.

Employees of Lazydays

As  of  December  31,  2019,  Lazydays  had  approximately  935  employees,  including  approximately  922  full-time  employees.  None  of  the  Lazydays employees are represented by a labor union or are party to a collective bargaining agreement, and Lazydays has not had any labor- related work stoppages. The Company believes that its employee relations are in good standing.

Lazydays (LAZY) stock price chart over the last 5 years

The image below shows the stock price chart of Lazydays (LAZY) over the last 5 years. And it's   been a good time for Lazydays stockholders . Over the last 5 years the stock of LAZY increased by 93.1%. Pretty sure no investor would  say no to those kind of returns.
Lazydays (LAZY) stock price chart over the last 5 years
Lazydays (LAZY) stock price chart over the last 5 years

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