Rev Group, Inc. Reports Fiscal 2021 Fourth Quarter and Full Year Results Provides Fiscal 2022 Full Year Guidance

Rhea-AI Summary

REV Group, Inc. (NYSE: REVG) reported fourth quarter net sales of $589.9 million, a 4.3% decline year-over-year. However, full year sales rose 4.5% to $2.38 billion. The fourth quarter net income stood at $0.0 million but adjusted net income increased to $17.9 million. Adjusted EBITDA also improved to $31.1 million for the quarter. The company declared a quarterly dividend of $0.05 per share and reported a record backlog of $3.1 billion.

Outlook for fiscal 2022 anticipates net sales between $2.3 and $2.55 billion.

Positive

• Full year net sales increased by 4.5% to $2.38 billion.
• Adjusted EBITDA for full year 2021 rose to $141.5 million.
• Record backlog of $3.1 billion indicates strong future demand.
• Net income for full year 2021 improved to $44.4 million from a loss of $30.5 million in 2020.
• Quarterly cash dividend of $0.05 per share declared.

Negative

• Fourth quarter net sales decreased by 4.3% compared to the previous year.
• Fourth quarter net income was $0.0 million, influenced by restructuring and joint venture losses.
• Fire and Emergency segment sales fell by 15.9% due to supply chain constraints.

• Fourth quarter and full year net sales of $589.9 million and $2,380.8 million, respectively
• Fourth quarter and full year net income of $0.0 million and $44.4 million, respectively
• Fourth quarter and full year Adjusted EBITDA¹ of $31.1 million and $141.5 million, respectively
• Fourth quarter and full year Adjusted Net Income of $17.9 million and $76.9 million, respectively
• Record full year cash provided by operating activities of $158.3 million and Net Debt² reduction of $129.1 million
• End of fourth quarter $3.1 billion record backlog on strong order intake across all segments

BROOKFIELD, Wis.--(BUSINESS WIRE)-- REV Group, Inc. (NYSE: REVG) today reported results for the three months ended October 31, 2021 (“fourth quarter 2021”). Consolidated net sales in the fourth quarter 2021 were $589.9 million, representing a decrease of 4.3 percent compared to $616.3 million for the three months ended October 31, 2020 (“fourth quarter 2020”). The decrease in consolidated net sales was primarily due to a decrease in net sales in the Fire and Emergency (“F&E”) segment partially offset by an increase in net sales in the Commercial and Recreation segments. Consolidated net sales were $2.4 billion for the twelve months ended October 31, 2021 (“full year 2021”), which was an increase of 4.5 percent over the twelve months ended October 31, 2020 (“full year 2020”).

The company’s fourth quarter 2021 net income was $0.0 million, or $0.00 per diluted share, which included a $6.2 million loss related to the expected exit of its interest in a China JV investment as well as $3.6 million related to restructuring and related activities and impairment of real property at certain facilities within the F&E segment. Adjusted Net Income for the fourth quarter 2021 was $17.9 million, or $0.27 per diluted share, compared to Adjusted Net Income of $11.8 million, or $0.19 per diluted share, in the fourth quarter 2020. Net income for the full year 2021 was $44.4 million, or $0.69 per diluted share, compared to a net loss of $30.5 million, or $0.48 per diluted share in full year 2020.

Adjusted EBITDA in the fourth quarter 2021 was $31.1 million, compared to $28.0 million in the fourth quarter 2020. The increase in Adjusted EBITDA during the quarter was driven by increased contribution from the Recreation segment and lower corporate expense partially offset by a decrease in the F&E and Commercial segments. Full year 2021 Adjusted EBITDA was $141.5 million, compared to $67.5 million in full year 2020.

During the quarter, the company appointed Eric Sandstrom as Senior Vice President, Engineering & Technology, a newly created executive leadership position. The new role will play a critical part in evolving the portfolio, optimizing engineering excellence, and leading product and powertrain design, innovation, and technological advancement. Prior to joining REV Group, Eric was Global Chief Engineer – Electric Propulsion Systems at General Motors.

“We exited the year with another quarter of year-over-year Adjusted EBITDA improvement, generated record full-year Free Cash Flow, and substantially improved the balance sheet. Our record $3.1 billion backlog combined with the significant progress we have made building our operational capabilities have positioned us well to continue to improve our performance and create shareholder value.” REV Group Inc. President and CEO Rod Rushing said. “I am proud of the dedication of our employees as they delivered strong performance in fiscal 2021, while navigating through supply chain challenges, difficult labor markets and inflationary headwinds.”

REV Group Fourth Quarter Segment Highlights

Fire & Emergency Segment

F&E segment net sales were $277.3 million in the fourth quarter 2021, a decrease of $52.3 million, or 15.9%, from $329.6 million in the fourth quarter 2020. The decrease in net sales compared to the prior year quarter was primarily due to decreased shipments of fire apparatus and ambulance units compared to the prior year quarter related to supply chain constraints and lower shipments at one fire manufacturing plant related to the impacts of Hurricane Ida. F&E segment backlog at the end of the fourth quarter 2021 was $1,498.6 million, an increase of $532.8 million compared to $965.8 million at the end of the fourth quarter 2020. The increase was primarily the result of continued strong demand and order intake for fire apparatus and ambulance units.

F&E segment Adjusted EBITDA was $10.1 million in the fourth quarter 2021, a decrease of $4.7 million, or 31.8%, from $14.8 million in the fourth quarter 2020. The decrease in profitability was primarily related to lower sales volume and labor inefficiencies resulting from supply chain constraints, inefficiencies related to Hurricane Ida, and the return of certain travel and trade show related costs that were not incurred in the prior year quarter due to COVID-19.

Commercial Segment

Commercial segment net sales were $94.5 million in the fourth quarter 2021, an increase of $3.5 million, or 3.8%, from $91.0 million in the fourth quarter 2020. The increase in net sales compared to the prior year quarter was primarily due to increased shipments of municipal transit buses, terminal trucks and street sweepers partially offset by decreased shipments of school buses. Commercial segment backlog at the end of the fourth quarter 2021 was $394.7 million, an increase of $120.9 million compared to $273.8 million at the end of the fourth quarter 2020. The increase was primarily the result of increased orders for school busses, terminal trucks and street sweepers, partially offset by a decline in orders for municipal transit buses.

Commercial segment Adjusted EBITDA was $5.7 million in the fourth quarter 2021, a decrease of $0.7 million, or 10.9%, from $6.4 million in the fourth quarter 2020. Lower profitability in the quarter was primarily the result of a temporary suspension of school bus production related to supply chain disruptions, partially offset by increased sales volume of municipal transit buses, terminal trucks and street sweepers as well as productivity improvements within the terminal truck and street sweeper businesses.

Recreation Segment

Recreation segment net sales were $217.9 million in the fourth quarter 2021, an increase of $23.7 million, or 12.2%, from $194.2 million in the fourth quarter 2020. The increase in net sales compared to the prior year quarter was primarily due to increased unit shipments and lower discounting and sales allowances. Backlog at the end of the fourth quarter 2021 was $1,234.5 million, an increase of $695.6 million compared to $538.9 million at the end of the fourth quarter 2020. The increase was primarily the result of strong demand and order intake across all product categories.

Recreation segment Adjusted EBITDA was $21.7 million in the fourth quarter 2021, an increase of $1.2 million, or 5.9%, from $20.5 million in the fourth quarter 2020. Profitability within the segment benefited primarily from increased production volumes, strong price realization, lower discounting and sales allowances, and benefits from strategic initiatives designed to improve profitability, partially offset by inefficiencies resulting from supply chain disruptions and labor constraints.

Working Capital, Liquidity, and Capital Allocation

Cash and cash equivalents totaled $13.3 million as of October 31, 2021. Net Debt was $201.7 million, and the company had $290.0 million available under its ABL revolving credit facility as of October 31, 2021, an increase of $13.2 million as compared to the July 31, 2021 availability of $276.8 million. Trade Working Capital³ for the company as of October 31, 2021 was $368.2 million, compared to $426.9 million as of October 31, 2020. The decrease was primarily due to decreased accounts receivable, decreased inventory and increased customer advances partially offset by decreased payables. Capital expenditures in the fourth quarter 2021 were $10.8 million compared to $3.8 million in the fourth quarter 2020. During the fourth quarter 2021, the company repurchased a total of 250,000 of its common shares for $3.9 million at an average purchase price of $15.45.

Fiscal Year 2022 Outlook

The company provided its outlook for its fiscal year ending October 31^st, 2022, which includes the following performance expectations:

• Net sales of $2.3 to $2.55 billion
• Net income of $45 to $73 million
• Adjusted EBITDA of $125 to $155 million
• Adjusted Net Income of $64 to $89 million
• Free Cash Flow⁴ of $58 to $80 million

Quarterly Dividend

The company’s board of directors declared a quarterly cash dividend in the amount of $0.05 per share of common stock, which equates to a rate of $0.20 per share of common stock on an annualized basis, payable on January 14, 2022, to shareholders of record on December 31, 2021.

Conference Call

A conference call to discuss the company’s fiscal year 2021 fourth quarter financial results is scheduled for December 15, 2021, at 10:00 a.m. ET. A supplemental slide deck will be available on the REV Group, Inc. investor relations website. The call will be webcast simultaneously over the Internet. To access the webcast, listeners can go to http://investors.revgroup.com/investor-events-and-presentations/events at least 15 minutes prior to the event and follow instructions for listening to the webcast. An audio replay of the call and related question and answer session will be available for 12 months at this website.

About REV Group, Inc.

REV Group (REVG) companies are leading designers and manufacturers of specialty vehicles and related aftermarket parts and services. We serve a diversified customer base, primarily in the United States, through three segments: Fire & Emergency, Commercial, and Recreation. We provide customized vehicle solutions for applications, including essential needs for public services (ambulances, fire apparatus, school buses, and transit buses), commercial infrastructure (terminal trucks and industrial sweepers) and consumer leisure (recreational vehicles). Our diverse portfolio is made up of well-established principal vehicle brands, including many of the most recognizable names within their industry. Several of our brands pioneered their specialty vehicle product categories and date back more than 50 years. REV Group trades on the NYSE under the symbol REVG. Investors-REVG

Note Regarding Non-GAAP Measures

The company reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). However, management believes that the evaluation of our ongoing operating results may be enhanced by a presentation of Adjusted EBITDA and Adjusted Net Income, which are non-GAAP financial measures. Adjusted EBITDA represents net income before interest expense, income taxes, depreciation and amortization and loss on early extinguishment of debt, as adjusted for certain non-recurring, one-time and other adjustments which we believe are not indicative of our underlying operating performance. Adjusted Net Income represents net income as adjusted for certain after-tax, non-recurring, one-time and other adjustments, which we believe are not indicative of our underlying operating performance, as well as non-cash intangible asset amortization and stock-based compensation. Free Cash Flow represents net cash from operating activities minus capital expenditures. Net debt represents total debt less cash. Trade Working Capital represents accounts receivable plus inventories less accounts payable and customer advances.

The company believes that the use of Adjusted EBITDA, Adjusted Net Income, Trade Working Capital, Free Cash Flow, and Net Debt provide additional meaningful methods of evaluating certain aspects of its operating performance from period to period on a basis that may not be otherwise apparent under GAAP when used in addition to, and not in lieu of, GAAP measures. A reconciliation of Adjusted EBITDA and Adjusted Net Income to the most closely comparable financial measures calculated in accordance with GAAP is included in the financial appendix of this news release.

Cautionary Statement About Forward-Looking Statements

This news release contains statements that the company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. This news release includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements.” These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “strives,” “goal,” “seeks,” “projects,” “intends,” “forecasts,” “plans,” “may,” “will” or “should” or, in each case, their negative or other variations or comparable terminology. They appear in a number of places throughout this news release and include statements regarding our intentions, beliefs, goals or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the industries in which we operate, including REV Group’s outlook for the full fiscal year 2022.

Our forward-looking statements are subject to risks and uncertainties, including those highlighted under “Risk Factors” and “Cautionary Statement on Forward-Looking Statements” in the company’s annual report on Form 10-K, and in the company’s subsequent quarterly reports on Form 10-Q, together with the company’s other filings with the SEC, which risks and uncertainties may cause actual results to differ materially from those projected or implied by the forward-looking statement. Forward-looking statements are based on current expectations and assumptions and currently available data and are neither predictions nor guarantees of future events or performance. You should not place undue reliance on forward-looking statements, which only speak as of the date hereof. The company does not undertake to update or revise any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise, expect as required by applicable law.

______________________________

1 REV Group, Inc. Adjusted Net Income and Adjusted EBITDA are non-GAAP measures that are reconciled to their nearest GAAP measure later in this release.

2 Net Debt is defined as total debt less cash and cash equivalents.

3 Trade Working Capital is defined as accounts receivable plus inventories less accounts payable and customer advances.

4 Free cash flow is defined as cash from operations less capital expenditures.

REV GROUP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions, except per share amounts)
		October 31, 2021				October 31, 2020
ASSETS
Current assets:
Cash and cash equivalents		$	13.3			$	11.4
Accounts receivable, net			213.3				229.3
Inventories, net			481.7				537.2
Other current assets			52.7				34.1
Total current assets			761.0				812.0
Property, plant and equipment, net			157.6				168.4
Goodwill			157.3				157.3
Intangible assets, net			126.3				136.1
Right of use assets			19.1				23.2
Other long-term assets			17.0				15.3
Total assets		$	1,238.3			$	1,312.3
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt		$	—			$	1.7
Accounts payable			116.2				169.5
Customer advances			210.6				170.1
Accrued warranty			22.3				24.1
Short-term lease obligations			7.1				8.4
Other current liabilities			80.8				73.5
Total current liabilities			437.0				447.3
Long-term debt, less current maturities			215.0				340.5
Deferred income taxes			21.4				2.9
Long-term lease obligations			12.8				16.9
Other long-term liabilities			33.3				32.4
Total liabilities			719.5				840.0
Commitments and contingencies
Shareholders' Equity:
Preferred stock ($.001 par value, 95,000,000 shares authorized; none issued or outstanding)			—				—
Common stock ($.001 par value, 605,000,000 shares authorized; 64,584,291 and 63,403,326 shares issued and outstanding, respectively)			0.1				0.1
Additional paid-in capital			502.1				496.1
Retained earnings (deficit)			16.7				(21.1	)
Accumulated other comprehensive loss			(0.1	)			(2.8	)
Total shareholders' equity			518.8				472.3
Total liabilities and shareholders' equity		$	1,238.3			$	1,312.3

REV GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except share and per share amounts)
		(Unaudited) Three Months Ended							Twelve Months Ended
		October 31, 2021			October 31, 2020				October 31, 2021			October 31, 2020
Net sales		$	589.9		$	616.3			$	2,380.8		$	2,277.6
Cost of sales			524.6			554.6				2,089.8			2,049.5
Gross profit			65.3			61.7				291.0			228.1
Operating expenses:
Selling, general and administrative			47.9			47.2				189.0			204.9
Research and development costs			1.0			1.4				4.4			5.8
Amortization of intangible assets			2.4			2.9				9.8			13.3
Restructuring			1.6			3.9				2.5			9.9
Impairment charges			1.5			8.4				1.5			12.1
Total operating expenses			54.4			63.8				207.2			246.0
Operating income (loss)			10.9			(2.1	)			83.8			(17.9	)
Interest expense, net			3.0			5.4				17.3			25.7
Loss on early extinguishment of debt			—			—				1.4			—
Loss on sale of business			—			1.8				2.8			11.1
Loss on investment in China JV			6.2			—				6.2			—
Loss (gain) on acquisition of business			—			3.3				0.4			(8.6	)
Income (loss) before provision (benefit) for income taxes			1.7			(12.6	)			55.7			(46.1	)
Provision (benefit) for income taxes			1.7			(2.4	)			11.3			(15.6	)
Net income (loss)			—			(10.2	)			44.4			(30.5	)
Net Income (loss) per common share:
Basic		$	—		$	(0.16	)		$	0.70		$	(0.48	)
Diluted		$	—		$	(0.16	)		$	0.69		$	(0.48	)
Dividends declared per common share		$	0.05		$	—			$	0.10		$	0.10
Adjusted income per common share:
Basic		$	0.28		$	0.19			$	1.21		$	0.15
Diluted		$	0.27		$	0.19			$	1.19		$	0.15
Weighted Average Shares Outstanding:
Basic			63,791,337			63,142,857				63,388,575			63,044,872
Diluted			65,204,303			63,142,857				64,652,625			63,044,872

REV GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions)
		Fiscal Year Ended
		October 31, 2021				October 31, 2020				October 31, 2019
Cash flows from operating activities:
Net income (loss) before non-controlling interest		$	44.4			$	(30.5	)		$	(13.1	)
Adjustments to reconcile net income (loss) before non-controlling interest to net cash provided by operating activities:
Depreciation and amortization			32.0				40.2				45.7
Amortization of debt issuance costs			2.0				2.5				2.0
Stock-based compensation expense			7.8				7.8				7.2
Deferred income taxes			1.1				(27.8	)			(5.0	)
Loss on early extinguishment of debt			1.4				—				—
Gain on sale of assets			(1.5	)			(1.2	)			(1.9	)
Impairment charges			1.5				12.1				8.9
Loss on sale of business			2.8				11.1				—
Loss on investment in China JV			6.2				—				—
Loss (gain) on acquisition of business			0.4				(8.6	)			—
Changes in operating assets and liabilities, net
Receivables, net			12.0				44.1				13.4
Inventories, net			52.8				27.1				(2.7	)
Other current assets			(1.5	)			(1.8	)			(9.8	)
Accounts payable			(49.7	)			(36.7	)			(17.2	)
Accrued warranty			(0.6	)			2.9				(8.6	)
Customer advances			40.5				4.9				12.1
Other liabilities			9.7				7.7				24.6
Long-term assets			(3.0	)			1.9				(3.1	)
Net cash provided by operating activities			158.3				55.7				52.5
Cash flows from investing activities:
Purchase of property, plant and equipment			(24.7	)			(13.5	)			(20.8	)
Purchase of rental and used vehicles			—				(3.3	)			(3.0	)
Proceeds from sale of assets			12.5				11.3				19.5
Proceeds from sale of businesses			2.0				54.5				4.5
Acquisition of businesses, net of cash acquired			—				(47.3	)			—
Net cash (used in) provided by investing activities			(10.2	)			1.7				0.2
Cash flows from financing activities:
Net proceeds (repayments) from borrowings on revolving credit			175.0				(35.1	)			(90.0	)
Net proceeds from borrowings of Term Loan			—				—				49.2
Repayment of long-term debt			(303.4	)			(3.3	)			(1.5	)
Payment of dividends			(6.6	)			(9.5	)			(12.5	)
Repurchase and retirement of common stock			(3.9	)			—				(8.3	)
Payment of debt issuance costs			(7.0	)			(1.0	)			(0.2	)
Proceeds from exercise of common stock options			2.0				0.8				0.6
Other financing activities			(2.3	)			(1.2	)			1.4
Net cash used in financing activities			(146.2	)			(49.3	)			(61.3	)
Net increase (decrease) in cash and cash equivalents			1.9				8.1				(8.6	)
Cash and cash equivalents, beginning of year			11.4				3.3				11.9
Cash and cash equivalents, end of year		$	13.3			$	11.4			$	3.3
Supplemental disclosures of cash flow information:
Cash paid for:
Interest		$	14.8			$	23.2			$	30.3
Income taxes, net of refunds		$	3.8			$	5.5			$	(9.1	)

REV GROUP, INC. AND SUBSIDIARIES SEGMENT INFORMATION (In millions; unaudited)
		(Unaudited) Three Months Ended October 31,								Twelve Months Ended October 31,
		2021				2020				2021				2020
Net Sales:
Fire & Emergency		$	277.3			$	329.6			$	1,135.1			$	1,132.0
Commercial			94.5				91.0				387.3				484.8
Recreation			217.9				194.2				858.5				657.8
Corporate & Other			0.1				1.5				(0.1	)			3.0
Total		$	589.8			$	616.3			$	2,380.8			$	2,277.6
Adjusted EBITDA:
Fire & Emergency		$	10.1			$	14.8			$	57.7			$	39.9
Commercial			5.7				6.4				31.0				34.5
Recreation			21.7				20.5				86.0				38.4
Corporate & Other			(6.4	)			(13.7	)			(33.2	)			(45.3	)
Total		$	31.1			$	28.0			$	141.5			$	67.5
Adjusted EBITDA Margin:
Fire & Emergency			3.6	%			4.5	%			5.1	%			3.5	%
Commercial			6.0	%			7.0	%			8.0	%			7.1	%
Recreation			10.0	%			10.6	%			10.0	%			5.8	%
Corporate & Other		n/m				n/m				n/m				n/m
Total			5.3	%			4.5	%			5.9	%			3.0	%
										Increase (Decrease)
Period-End Backlog:		October 31, 2021				October 31, 2020				$				%
Fire & Emergency		$	1,498.6			$	965.8			$	532.8				55	%
Commercial			394.7				273.8				120.9				44	%
Recreation			1,234.5				538.9				695.6				129	%
Total Backlog		$	3,127.8			$	1,778.5			$	1,349.3				76	%

REV GROUP, INC. AND SUBSIDIARIES ADJUSTED EBITDA BY SEGMENT (In millions; unaudited)
		Three Months Ended October 31, 2021
		Fire & Emergency				Commercial				Recreation				Corporate & Other				Total
Net (loss) income		$	(1.4	)		$	4.6			$	16.7			$	(19.9	)		$	—
Depreciation & amortization			3.0				0.7				3.6				0.5				7.8
Interest expense, net			1.2				—				—				1.7				2.9
Loss on early extinguishment of debt			—				—				—				—				—
Benefit for income taxes			—				—				—				1.7				1.7
EBITDA			2.8				5.3				20.3				(16.0	)			12.4
Sponsor expense reimbursement			—				—				—				0.2				0.2
Restructuring			1.6				—				—				—				1.6
Impairment charges			1.5				—				—				—				1.5
Stock-based compensation expense			—				—				—				2.3				2.3
Legal matters			—				—				—				0.8				0.8
Net loss on sale of business and assets			—				—				—				6.2				6.2
Other items			4.2				0.4				1.4				0.1				6.1
Adjusted EBITDA		$	10.1			$	5.7			$	21.7			$	(6.4	)		$	31.1
		Three Months Ended October 31, 2020
		Fire & Emergency				Commercial				Recreation				Corporate & Other				Total
Net income (loss)		$	5.2			$	4.3			$	16.8			$	(36.5	)		$	(10.2	)
Depreciation & amortization			3.3				1.0				3.5				1.6				9.4
Interest expense, net			1.0				—				0.2				4.2				5.4
Provision for income taxes			—				—				—				(2.4	)			(2.4	)
EBITDA			9.5				5.3				20.5				(33.1	)			2.2
Transaction expenses			—				0.1				—				0.6				0.7
Sponsor expense reimbursement			—				—				—				0.3				0.3
Restructuring			2.0				0.2				—				1.7				3.9
Restructuring related charges			—				0.1				—				6.5				6.6
Impairment charges			3.3				—				—				5.1				8.4
Stock-based compensation expense			—				—				—				0.6				0.6
Legal matters			—				—				—				0.2				0.2
Loss on sale of business			—				0.7				—				1.1				1.8
Gain on acquisition of business			—				—				—				3.3				3.3
Adjusted EBITDA		$	14.8			$	6.4			$	20.5			$	(13.7	)		$	28.0

REV GROUP, INC. AND SUBSIDIARIES ADJUSTED EBITDA BY SEGMENT (In millions; unaudited)
		Twelve Months Ended October 31, 2021
		Fire & Emergency				Commercial				Recreation				Corporate & Other				Total
Net income (loss)		$	28.3			$	27.0			$	70.3			$	(81.2	)		$	44.4
Depreciation & amortization			12.0				2.9				14.2				2.9				32.0
Interest expense, net			5.5				0.7				0.1				11.0				17.3
Loss on early extinguishment of debt			—				—				—				1.4				1.4
Provision for income taxes			—				—				—				11.3				11.3
EBITDA			45.8				30.6				84.6				(54.6	)			106.4
Transaction expenses			—				—				—				3.2				3.2
Sponsor expense reimbursement			—				—				—				0.4				0.4
Restructuring			1.6				—				—				0.9				2.5
Restructuring related charges			0.3				—				—				—				0.3
Impairment charges			1.5				—				—				—				1.5
Stock-based compensation expense			—				—				—				7.8				7.8
Legal matters			1.7				—				—				2.3				4.0
Net loss on sale of business and assets			1.6				—				—				6.3				7.9
Gain on acquisition of business			—				—				—				0.4				0.4
Other items			4.2				0.4				1.4				0.1				6.1
Earnings attributable to assets held for sale			1.0				—				—				—				1.0
Adjusted EBITDA		$	57.7			$	31.0			$	86.0			$	(33.2	)		$	141.5
		Twelve Months Ended October 31, 2020
		Fire & Emergency				Commercial				Recreation				Corporate & Other				Total
Net income (loss)		$	12.3			$	21.9			$	23.7			$	(88.4	)		$	(30.5	)
Depreciation & amortization			13.5				5.7				13.7				7.3				40.2
Interest expense, net			4.5				0.9				0.6				19.7				25.7
Benefit for income taxes			—				—				—				(15.6	)			(15.6	)
EBITDA			30.3				28.5				38.0				(77.0	)			19.8
Transaction expenses			0.2				0.1				—				3.0				3.3
Sponsor expense reimbursement			—				—				—				0.5				0.5
Restructuring			6.1				0.2				0.4				3.2				9.9
Restructuring related charges			—				0.1				—				10.4				10.5
Impairment charges			3.3				—				—				8.8				12.1
Stock-based compensation expense			—				—				—				7.8				7.8
Legal matters			—				—				—				1.8				1.8
Loss on sale of business			—				6.2				—				4.9				11.1
Gain on acquisition of business			—				—				—				(8.6	)			(8.6	)
Earnings attributable to assets held for sale			—				(0.6	)			—				(0.2	)			(0.8	)
Deferred purchase price payment			—				—				—				0.1				0.1
Adjusted EBITDA		$	39.9			$	34.5			$	38.4			$	(45.3	)		$	67.5

REV GROUP, INC. AND SUBSIDIARIES ADJUSTED NET INCOME (In millions; unaudited)
		Three Months Ended October 31,								Twelve Months Ended October 31,
		2021				2020				2021				2020
Net income (loss)		$	—			$	(10.2	)		$	44.4			$	(30.5	)
Amortization of intangible assets			2.4				2.9				9.8				13.3
Transaction expenses			—				0.7				3.2				3.3
Sponsor expense reimbursement			0.2				0.3				0.4				0.5
Restructuring			1.6				3.9				2.5				9.9
Restructuring related charges			—				6.6				0.3				10.5
Impairment charges			1.5				8.4				1.5				12.1
Stock-based compensation expense			2.3				0.6				7.8				7.8
Legal matters			0.8				0.2				4.0				1.8
Net loss on sale of business and assets			6.2				1.8				7.9				11.1
Gain (loss) on acquisition of business			—				3.3				0.4				(8.6	)
Other items			6.1				—				6.1				—
Losses (earnings) attributable to assets held for sale			—				—				1.0				(0.8	)
Deferred purchase price payment			—				—				—				0.1
Loss on early extinguishment of debt			—				—				1.4				—
Impact of tax rate change			—				—				(4.2	)			(3.5	)
Income tax effect of adjustments			(3.2	)			(6.7	)			(9.6	)			(17.5	)
Adjusted Net Income		$	17.9			$	11.8			$	76.9			$	9.5

REV GROUP, INC. AND SUBSIDIARIES ADJUSTED EBITDA OUTLOOK RECONCILIATION (In millions)
		Fiscal Year 2022
		Low				High
Net income (1)		$	45.0			$	72.7
Depreciation and amortization			31.0				29.0
Interest expense, net			13.0				11.0
Provision for income taxes			16.6				26.9
EBITDA			105.6				139.6
Sponsor expense reimbursement			0.4				0.4
Restructuring			10.0				7.0
Stock-based compensation expense			9.0				8.0
Adjusted EBITDA		$	125.0			$	155.0

REV GROUP, INC. AND SUBSIDIARIES ADJUSTED NET INCOME OUTLOOK RECONCILIATION (In millions)
		Fiscal Year 2022
		Low				High
Net income (1)		$	45.0			$	72.7
Amortization of intangible assets			7.1				7.1
Sponsor expense reimbursement			0.4				0.4
Restructuring			10.0				7.0
Stock-based compensation expense			9.0				8.0
Income tax effect of adjustments			(7.2	)			(6.1	)
Adjusted Net Income		$	64.3			$	89.1

(1)	Does not include any non-recurring charges that may occur during the period shown other than those presented in this reconciliation. See “Cautionary Statement About Forward-Looking Statements” above.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211215005153/en/

Drew Konop

VP, Investor Relations & Corporate Development

Email: investors@revgroup.com

Phone: 1-888-738-4037 (1-888-REVG-037)

Source: REV Group, Inc.

FAQ

What were REV Group's fourth quarter earnings results for 2021?

REV Group reported fourth quarter net sales of $589.9 million and net income of $0.0 million, with adjusted net income at $17.9 million.

How did REV Group perform for the full year 2021?

For the full year 2021, REV Group reported net sales of $2.4 billion, a net income of $44.4 million, and adjusted EBITDA of $141.5 million.

What is REV Group's outlook for 2022?

REV Group expects net sales between $2.3 billion and $2.55 billion, with adjusted EBITDA guidance of $125 to $155 million.

What is REV Group's current backlog?

REV Group's backlog reached a record $3.1 billion due to strong order intake across all segments.

Is there a dividend declared by REV Group?

Yes, REV Group's board declared a quarterly dividend of $0.05 per share, payable on January 14, 2022.