Eric Gomberg of Dane Capital Management presented his in-depth investment thesis on Andina/Lazydays (Nasdaq: ANDA) at Best Ideas 2018.
Andina/Lazydays is among the largest RV dealerships in the U.S. (~$600 million in 2017 revenue). The company is in the process of going public via a SPAC (fully backstopped with long-term investors). The valuation and economics of the deal are compelling. LazyDays is going public at 6.5x 2017 EBITDA, with a 10+% FCF yield, and has numerous companies under NDA to acquire at 2-3.5x EBITDA. LazyDays’ closest comp, Camping World (CWH) has seen multiple expansion from 7x to 12x EBITDA since an IPO in late 2016. Eric expects a combination of accretive M&A, geographic diversification, and multiple expansion to lead to meaningful share price appreciation. Given the fragmentation in the RV dealership industry (2,100+ dealers in the U.S.), there is a long runway for growth. Eric recently attended the National RV Convention, at which a panel discussed succession planning for RV dealers. There appear to be few viable exits, and LazyDays appears to be among the most attractive. LazyDays is an asset-light business, with capex at 1.1% of sales. The company should emerge from the going-public transaction with a clean balance sheet, with just 0.8x leverage, based on a $20 million term loan, which will likely be refinanced in the near term.
About the instructor:
Eric Gomberg founded Dane Capital Management in 2014. The firm is a private investment company that focuses on value and special situations investments.
Members, log in below to access the full session.
Not a member?
Thank you for your interest. Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form: