Rev Group, Inc. Reports Strong Third Quarter Results, Raises Fiscal 2023 Outlook
- Q3 net sales increased by 14.3% YoY
- Raises full-year outlook for net sales
- None.
-
Third quarter net sales of
compared to$680.0 million in the prior year quarter$594.8 million -
Third quarter net income of
compared to net income of$14.9 million in the prior year quarter$9.5 million -
Third quarter Adjusted EBITDA1 of
compared to$39.4 million in the prior year quarter$29.5 million -
Third quarter Adjusted Net Income1 of
compared to$20.9 million in the prior year quarter$14.3 million -
Raises full-year fiscal 2023 outlook for net sales of
to$2.55 , net income outlook of$2.6 billion to$27 , Adjusted EBITDA of$37 million to$135 , Adjusted Net Income of$145 million to$63 , and Free Cash Flow of$73 million to$70 $75 million
The company’s third quarter 2023 net income was
“We are pleased to have delivered another strong quarter of operational improvements and financial performance which included
_____________________ |
1 REV Group, Inc. Adjusted Net Income and Adjusted EBITDA are non-GAAP measures that are reconciled to their nearest GAAP measure later in this release. |
REV Group Third Quarter Segment Highlights
Fire & Emergency Segment
Fire & Emergency (F&E) segment net sales were
F&E segment Adjusted EBITDA was
Commercial Segment
Commercial segment net sales were
Commercial segment Adjusted EBITDA was
Recreation Segment
Recreation segment net sales were
Recreation segment Adjusted EBITDA was
Working Capital, Liquidity, and Capital Allocation
Cash and cash equivalents totaled
_____________________ |
2 Net Debt is defined as total debt less cash and cash equivalents. |
3 Trade Working Capital is defined as accounts receivable plus inventories less accounts payable and customer advances. |
Updated Fiscal Year 2023 Outlook
|
|
Full Fiscal Year 2023 |
|
||||||||||||||
|
|
Updated Guidance |
|
|
|
Prior Guidance |
|
||||||||||
($ in millions) |
|
Low |
|
|
High |
|
|
|
Low |
|
|
High |
|
||||
Net Sales |
|
$ |
2,550 |
|
|
$ |
2,600 |
|
|
|
$ |
2,450 |
|
|
$ |
2,550 |
|
Net Income |
|
$ |
27 |
|
|
$ |
37 |
|
|
|
$ |
15 |
|
|
$ |
30 |
|
Adjusted EBITDA |
|
$ |
135 |
|
|
$ |
145 |
|
|
|
$ |
120 |
|
|
$ |
135 |
|
Adjusted Net Income |
|
$ |
63 |
|
|
$ |
73 |
|
|
|
$ |
48 |
|
|
$ |
62 |
|
Free Cash Flow⁴ |
|
$ |
70 |
|
|
$ |
75 |
|
|
|
$ |
43 |
|
|
$ |
56 |
|
Quarterly Dividend
The company’s board of directors declared a quarterly cash dividend in the amount of
Conference Call
A conference call to discuss the company’s fiscal year 2023 third quarter financial results is scheduled for September 13, 2023, 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
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
_____________________ |
4 Free Cash Flow is defined as net cash from operating activities minus capital expenditures. |
Note Regarding Non-GAAP Measures
The company reports its financial results in accordance with
The company believes that the use of Adjusted EBITDA, Adjusted Net Income and Free Cash Flow 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 2023.
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.
REV GROUP, INC. AND SUBSIDIARIES CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEETS (In millions, except share amounts) |
|||||||
|
|
|
|
(Audited) |
|||
|
|
July 31,
|
|
October 31,
|
|||
ASSETS |
|
|
|
|
|
||
Current assets: |
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
11.0 |
|
|
$ |
20.4 |
Accounts receivable, net |
|
|
210.6 |
|
|
|
215.0 |
Inventories, net |
|
|
644.0 |
|
|
|
629.5 |
Other current assets |
|
|
41.4 |
|
|
|
23.5 |
Total current assets |
|
|
907.0 |
|
|
|
888.4 |
Property, plant and equipment, net |
|
|
152.6 |
|
|
|
148.9 |
Goodwill |
|
|
157.3 |
|
|
|
157.3 |
Intangible assets, net |
|
|
116.2 |
|
|
|
119.2 |
Right of use assets |
|
|
38.0 |
|
|
|
20.2 |
Other long-term assets |
|
|
8.4 |
|
|
|
10.6 |
Total assets |
|
$ |
1,379.5 |
|
|
$ |
1,344.6 |
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|||
Current liabilities: |
|
|
|
|
|||
Accounts payable |
|
$ |
192.7 |
|
|
$ |
163.9 |
Short-term customer advances |
|
|
236.6 |
|
|
|
258.0 |
Short-term accrued warranty |
|
|
21.9 |
|
|
|
18.9 |
Short-term lease obligations |
|
|
7.8 |
|
|
|
6.1 |
Other current liabilities |
|
|
89.3 |
|
|
|
80.5 |
Total current liabilities |
|
|
548.3 |
|
|
|
527.4 |
Long-term debt |
|
|
179.0 |
|
|
|
230.0 |
Long-term customer advances |
|
|
112.2 |
|
|
|
74.8 |
Deferred income taxes |
|
|
18.6 |
|
|
|
21.0 |
Long-term lease obligations |
|
|
30.4 |
|
|
|
14.2 |
Other long-term liabilities |
|
|
22.4 |
|
|
|
20.9 |
Total liabilities |
|
|
910.9 |
|
|
|
888.3 |
Commitments and contingencies |
|
|
|
|
|||
Shareholders' Equity: |
|
|
|
|
|||
Preferred stock ( |
|
|
— |
|
|
|
— |
Common stock ( |
|
|
0.1 |
|
|
|
0.1 |
Additional paid-in capital |
|
|
442.7 |
|
|
|
436.4 |
Retained earnings |
|
|
26.0 |
|
|
|
19.5 |
Accumulated other comprehensive (loss) income |
|
|
(0.2 |
) |
|
|
0.3 |
Total shareholders' equity |
|
|
468.6 |
|
|
|
456.3 |
Total liabilities and shareholders' equity |
|
$ |
1,379.5 |
|
|
$ |
1,344.6 |
REV GROUP, INC. AND SUBSIDIARIES CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (In millions, except share and per share amounts) |
||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Net sales |
|
$ |
680.0 |
|
$ |
594.8 |
|
$ |
1,944.7 |
|
$ |
1,708.1 |
Cost of sales |
|
|
599.8 |
|
|
527.0 |
|
|
1,724.1 |
|
|
1,527.4 |
Gross profit |
|
|
80.2 |
|
|
67.8 |
|
|
220.6 |
|
|
180.7 |
Operating expenses: |
|
|
|
|
|
|
|
|
||||
Selling, general and administrative |
|
|
52.6 |
|
|
46.1 |
|
|
170.6 |
|
|
144.2 |
Research and development costs |
|
|
1.3 |
|
|
0.9 |
|
|
3.5 |
|
|
2.9 |
Amortization of intangible assets |
|
|
0.6 |
|
|
1.3 |
|
|
3.0 |
|
|
5.7 |
Restructuring costs |
|
|
— |
|
|
2.3 |
|
|
— |
|
|
8.9 |
Total operating expenses |
|
|
54.5 |
|
|
50.6 |
|
|
177.1 |
|
|
161.7 |
Operating income |
|
|
25.7 |
|
|
17.2 |
|
|
43.5 |
|
|
19.0 |
Interest expense, net |
|
|
7.3 |
|
|
4.3 |
|
|
21.9 |
|
|
11.2 |
Loss on investment in |
|
|
— |
|
|
— |
|
|
0.7 |
|
|
— |
Loss on sale of business |
|
|
— |
|
|
— |
|
|
1.1 |
|
|
0.1 |
Income before provision for income taxes |
|
|
18.4 |
|
|
12.9 |
|
|
19.8 |
|
|
7.7 |
Provision for income taxes |
|
|
3.5 |
|
|
3.4 |
|
|
4.2 |
|
|
1.2 |
Net income |
|
$ |
14.9 |
|
$ |
9.5 |
|
$ |
15.6 |
|
$ |
6.5 |
|
|
|
|
|
|
|
|
|
||||
Net income per common share: |
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.25 |
|
$ |
0.16 |
|
$ |
0.27 |
|
$ |
0.11 |
Diluted |
|
$ |
0.25 |
|
$ |
0.16 |
|
$ |
0.26 |
|
$ |
0.10 |
Dividends declared per common share |
|
$ |
0.05 |
|
$ |
0.05 |
|
$ |
0.15 |
|
$ |
0.15 |
|
|
|
|
|
|
|
|
|
||||
Adjusted net income per common share: |
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.36 |
|
$ |
0.24 |
|
$ |
0.83 |
|
$ |
0.54 |
Diluted |
|
$ |
0.35 |
|
$ |
0.24 |
|
$ |
0.83 |
|
$ |
0.53 |
|
|
|
|
|
|
|
|
|
||||
Weighted Average Shares Outstanding: |
|
|
|
|
|
|
|
|
||||
Basic |
|
|
58,730,037 |
|
|
59,417,336 |
|
|
58,588,712 |
|
|
61,291,966 |
Diluted |
|
|
59,155,217 |
|
|
59,922,851 |
|
|
59,041,350 |
|
|
61,993,292 |
REV GROUP, INC. AND SUBSIDIARIES CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) |
||||||||
|
|
Nine Months Ended
|
||||||
|
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
|
$ |
15.6 |
|
|
$ |
6.5 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
19.7 |
|
|
|
25.2 |
|
Amortization of debt issuance costs |
|
|
1.2 |
|
|
|
1.3 |
|
Stock-based compensation expense |
|
|
11.0 |
|
|
|
6.3 |
|
Deferred income taxes |
|
|
(2.4 |
) |
|
|
2.2 |
|
Gain on sale of assets |
|
|
(0.5 |
) |
|
|
(0.5 |
) |
Loss on investment in |
|
|
0.7 |
|
|
|
— |
|
Loss on sale of business |
|
|
1.1 |
|
|
|
0.1 |
|
Changes in operating assets and liabilities, net |
|
|
27.0 |
|
|
|
18.4 |
|
Net cash provided by operating activities |
|
|
73.4 |
|
|
|
59.5 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Purchase of property, plant and equipment |
|
|
(19.7 |
) |
|
|
(15.9 |
) |
Proceeds from sale of assets |
|
|
0.5 |
|
|
|
2.8 |
|
Proceeds from sale of China JV |
|
|
0.6 |
|
|
|
1.8 |
|
Proceeds from sale of a business |
|
|
0.6 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(18.0 |
) |
|
|
(11.3 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Net (payments) proceeds from borrowings on revolving credit facility |
|
|
(51.0 |
) |
|
|
35.0 |
|
Payment of dividends |
|
|
(9.1 |
) |
|
|
(9.4 |
) |
Repurchase and retirement of common stock |
|
|
— |
|
|
|
(70.0 |
) |
Other financing activities |
|
|
(4.7 |
) |
|
|
(2.3 |
) |
Net cash used in financing activities |
|
|
(64.8 |
) |
|
|
(46.7 |
) |
Net (decrease) increase in cash and cash equivalents |
|
|
(9.4 |
) |
|
|
1.5 |
|
Cash and cash equivalents, beginning of period |
|
|
20.4 |
|
|
|
13.3 |
|
Cash and cash equivalents, end of period |
|
$ |
11.0 |
|
|
$ |
14.8 |
|
|
|
|
|
|
||||
Supplemental disclosures of cash flow information: |
|
|
|
|
||||
Cash paid (received) for: |
|
|
|
|
||||
Interest |
|
$ |
18.5 |
|
|
$ |
7.6 |
|
Income taxes, net of refunds |
|
$ |
7.0 |
|
|
$ |
(15.1 |
) |
REV GROUP, INC. AND SUBSIDIARIES SEGMENT INFORMATION (In millions; unaudited) |
||||||||||||||||
|
|
Three Months Ended July 31, |
|
Nine Months Ended July 31, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net Sales: |
|
|
|
|
|
|
|
|
||||||||
Fire & Emergency |
|
$ |
322.9 |
|
|
$ |
230.1 |
|
|
$ |
835.3 |
|
|
$ |
712.5 |
|
Commercial |
|
|
143.3 |
|
|
|
111.0 |
|
|
|
413.9 |
|
|
|
299.2 |
|
Recreation |
|
|
214.5 |
|
|
|
254.1 |
|
|
|
697.1 |
|
|
|
697.7 |
|
Corporate & Other |
|
|
(0.7 |
) |
|
|
(0.4 |
) |
|
|
(1.6 |
) |
|
|
(1.3 |
) |
Total |
|
$ |
680.0 |
|
|
$ |
594.8 |
|
|
$ |
1,944.7 |
|
|
$ |
1,708.1 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
||||||||
Fire & Emergency |
|
$ |
18.1 |
|
|
$ |
1.0 |
|
|
$ |
25.6 |
|
|
$ |
0.6 |
|
Commercial |
|
|
11.6 |
|
|
|
6.8 |
|
|
|
29.6 |
|
|
|
19.0 |
|
Recreation |
|
|
18.4 |
|
|
|
29.8 |
|
|
|
71.9 |
|
|
|
75.6 |
|
Corporate & Other |
|
|
(8.7 |
) |
|
|
(8.1 |
) |
|
|
(24.5 |
) |
|
|
(23.6 |
) |
Total |
|
$ |
39.4 |
|
|
$ |
29.5 |
|
|
$ |
102.6 |
|
|
$ |
71.6 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA Margin: |
|
|
|
|
|
|
|
|
||||||||
Fire & Emergency |
|
|
5.6 |
% |
|
|
0.4 |
% |
|
|
3.1 |
% |
|
|
0.1 |
% |
Commercial |
|
|
8.1 |
% |
|
|
6.1 |
% |
|
|
7.2 |
% |
|
|
6.4 |
% |
Recreation |
|
|
8.6 |
% |
|
|
11.7 |
% |
|
|
10.3 |
% |
|
|
10.8 |
% |
Total |
|
|
5.8 |
% |
|
|
5.0 |
% |
|
|
5.3 |
% |
|
|
4.2 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Period-End Backlog: |
|
July 31,
|
|
April 30,
|
|
January 31,
|
|
July 31,
|
||||||||
Fire & Emergency |
|
$ |
3,220.5 |
|
|
$ |
2,857.3 |
|
|
$ |
2,674.3 |
|
|
$ |
2,163.1 |
|
Commercial |
|
|
507.7 |
|
|
|
501.2 |
|
|
|
497.7 |
|
|
|
530.7 |
|
Recreation |
|
|
408.6 |
|
|
|
495.0 |
|
|
|
988.1 |
|
|
|
1,242.9 |
|
Total |
|
$ |
4,136.8 |
|
|
$ |
3,853.5 |
|
|
$ |
4,160.1 |
|
|
$ |
3,936.7 |
|
REV GROUP, INC. AND SUBSIDIARIES ADJUSTED EBITDA BY SEGMENT (In millions; unaudited) |
|||||||||||||||||
|
|
Three Months Ended July 31, 2023 |
|||||||||||||||
|
|
Fire &
|
|
Commercial |
|
Recreation |
|
Corporate & Other |
|
Total |
|||||||
Net income (loss) |
|
$ |
12.3 |
|
|
$ |
9.7 |
|
$ |
16.6 |
|
$ |
(23.7 |
) |
|
$ |
14.9 |
Depreciation and amortization |
|
|
3.2 |
|
|
|
0.8 |
|
|
1.7 |
|
|
0.6 |
|
|
|
6.3 |
Interest expense, net |
|
|
2.2 |
|
|
|
0.3 |
|
|
0.1 |
|
|
4.7 |
|
|
|
7.3 |
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
— |
|
|
3.5 |
|
|
|
3.5 |
EBITDA |
|
|
17.7 |
|
|
|
10.8 |
|
|
18.4 |
|
|
(14.9 |
) |
|
|
32.0 |
Transaction expenses |
|
|
— |
|
|
|
— |
|
|
— |
|
|
0.1 |
|
|
|
0.1 |
Restructuring related charges |
|
|
0.4 |
|
|
|
— |
|
|
— |
|
|
1.5 |
|
|
|
1.9 |
Stock-based compensation expense |
|
|
— |
|
|
|
— |
|
|
— |
|
|
3.5 |
|
|
|
3.5 |
Legal matters |
|
|
— |
|
|
|
— |
|
|
— |
|
|
1.1 |
|
|
|
1.1 |
Other items |
|
|
— |
|
|
|
0.8 |
|
|
— |
|
|
— |
|
|
|
0.8 |
Adjusted EBITDA |
|
$ |
18.1 |
|
|
$ |
11.6 |
|
$ |
18.4 |
|
$ |
(8.7 |
) |
|
$ |
39.4 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Three Months Ended July 31, 2022 |
|||||||||||||||
|
|
Fire &
|
|
Commercial |
|
Recreation |
|
Corporate & Other |
|
Total |
|||||||
Net (loss) income |
|
$ |
(5.9 |
) |
|
$ |
6.0 |
|
$ |
26.3 |
|
$ |
(16.9 |
) |
|
|
9.5 |
Depreciation and amortization |
|
|
2.8 |
|
|
|
0.7 |
|
|
2.8 |
|
|
0.6 |
|
|
|
6.9 |
Interest expense, net |
|
|
1.7 |
|
|
|
0.1 |
|
|
— |
|
|
2.5 |
|
|
|
4.3 |
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
— |
|
|
3.4 |
|
|
|
3.4 |
EBITDA |
|
|
(1.4 |
) |
|
|
6.8 |
|
|
29.1 |
|
|
(10.4 |
) |
|
|
24.1 |
Transaction expenses |
|
|
— |
|
|
|
— |
|
|
— |
|
|
0.1 |
|
|
|
0.1 |
Restructuring costs |
|
|
2.3 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
2.3 |
Stock-based compensation expense |
|
|
— |
|
|
|
— |
|
|
— |
|
|
1.8 |
|
|
|
1.8 |
Legal matters |
|
|
0.1 |
|
|
|
— |
|
|
0.7 |
|
|
0.4 |
|
|
|
1.2 |
Adjusted EBITDA |
|
$ |
1.0 |
|
|
$ |
6.8 |
|
$ |
29.8 |
|
$ |
(8.1 |
) |
|
$ |
29.5 |
REV GROUP, INC. AND SUBSIDIARIES ADJUSTED EBITDA BY SEGMENT (In millions; unaudited) |
|||||||||||||||||
|
|
Nine Months Ended July 31, 2023 |
|||||||||||||||
|
|
Fire &
|
|
Commercial |
|
Recreation |
|
Corporate & Other |
|
Total |
|||||||
Net income (loss) |
|
$ |
4.0 |
|
|
$ |
25.5 |
|
$ |
64.9 |
|
$ |
(78.8 |
) |
|
$ |
15.6 |
Depreciation & amortization |
|
|
9.4 |
|
|
|
2.3 |
|
|
6.3 |
|
|
1.7 |
|
|
|
19.7 |
Interest expense, net |
|
|
6.3 |
|
|
|
1.0 |
|
|
0.2 |
|
|
14.4 |
|
|
|
21.9 |
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
— |
|
|
4.2 |
|
|
|
4.2 |
EBITDA |
|
|
19.7 |
|
|
|
28.8 |
|
|
71.4 |
|
|
(58.5 |
) |
|
|
61.4 |
Transaction expenses |
|
|
— |
|
|
|
— |
|
|
— |
|
|
0.5 |
|
|
|
0.5 |
Sponsor expense reimbursement |
|
|
— |
|
|
|
— |
|
|
— |
|
|
0.2 |
|
|
|
0.2 |
Restructuring related charges |
|
|
4.1 |
|
|
|
— |
|
|
— |
|
|
6.4 |
|
|
|
10.5 |
Stock-based compensation expense |
|
|
— |
|
|
|
— |
|
|
— |
|
|
11.0 |
|
|
|
11.0 |
Legal matters |
|
|
0.9 |
|
|
|
— |
|
|
0.5 |
|
|
15.2 |
|
|
|
16.6 |
Loss on sale of business |
|
|
1.1 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
1.1 |
Other items |
|
|
(0.2 |
) |
|
|
0.8 |
|
|
— |
|
|
0.7 |
|
|
|
1.3 |
Adjusted EBITDA |
|
$ |
25.6 |
|
|
$ |
29.6 |
|
$ |
71.9 |
|
$ |
(24.5 |
) |
|
$ |
102.6 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Nine Months Ended July 31, 2022 |
|||||||||||||||
|
|
Fire &
|
|
Commercial |
|
Recreation |
|
Corporate & Other |
|
Total |
|||||||
Net (loss) income |
|
$ |
(32.9 |
) |
|
$ |
16.6 |
|
$ |
64.8 |
|
$ |
(42.0 |
) |
|
$ |
6.5 |
Depreciation & amortization |
|
|
11.2 |
|
|
|
2.2 |
|
|
10.1 |
|
|
1.7 |
|
|
|
25.2 |
Interest expense, net |
|
|
4.9 |
|
|
|
0.2 |
|
|
— |
|
|
6.1 |
|
|
|
11.2 |
Benefit for income taxes |
|
|
— |
|
|
|
— |
|
|
— |
|
|
1.2 |
|
|
|
1.2 |
EBITDA |
|
|
(16.8 |
) |
|
|
19.0 |
|
|
74.9 |
|
|
(33.0 |
) |
|
|
44.1 |
Transaction expenses |
|
|
— |
|
|
|
— |
|
|
— |
|
|
0.6 |
|
|
|
0.6 |
Sponsor expense reimbursement |
|
|
— |
|
|
|
— |
|
|
— |
|
|
0.1 |
|
|
|
0.1 |
Restructuring costs |
|
|
8.8 |
|
|
|
— |
|
|
— |
|
|
0.1 |
|
|
|
8.9 |
Restructuring related charges |
|
|
5.1 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
5.1 |
Stock-based compensation expense |
|
|
— |
|
|
|
— |
|
|
— |
|
|
6.3 |
|
|
|
6.3 |
Legal matters |
|
|
3.4 |
|
|
|
— |
|
|
0.7 |
|
|
2.3 |
|
|
|
6.4 |
Loss on sale of business |
|
|
0.1 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
0.1 |
Adjusted EBITDA |
|
$ |
0.6 |
|
|
$ |
19.0 |
|
$ |
75.6 |
|
$ |
(23.6 |
) |
|
$ |
71.6 |
REV GROUP, INC. AND SUBSIDIARIES ADJUSTED NET INCOME (In millions; unaudited) |
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net income |
|
$ |
14.9 |
|
|
$ |
9.5 |
|
|
$ |
15.6 |
|
|
$ |
6.5 |
|
Amortization of intangible assets |
|
|
0.6 |
|
|
|
1.3 |
|
|
|
3.0 |
|
|
|
5.7 |
|
Transaction expenses |
|
|
0.1 |
|
|
|
0.1 |
|
|
|
0.5 |
|
|
|
0.6 |
|
Sponsor expense reimbursement |
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
0.1 |
|
Restructuring costs |
|
|
— |
|
|
|
2.3 |
|
|
|
— |
|
|
|
8.9 |
|
Restructuring related charges |
|
|
1.9 |
|
|
|
— |
|
|
|
10.5 |
|
|
|
5.1 |
|
Stock-based compensation expense |
|
|
3.5 |
|
|
|
1.8 |
|
|
|
11.0 |
|
|
|
6.3 |
|
Legal matters |
|
|
1.1 |
|
|
|
1.2 |
|
|
|
16.6 |
|
|
|
6.4 |
|
Loss on sale of business |
|
|
— |
|
|
|
— |
|
|
|
1.1 |
|
|
|
0.1 |
|
Other items |
|
|
0.8 |
|
|
|
— |
|
|
|
1.3 |
|
|
|
— |
|
Accelerated depreciation on certain property, plant, and equipment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.3 |
|
Income tax effect of adjustments |
|
|
(2.0 |
) |
|
|
(1.9 |
) |
|
|
(11.0 |
) |
|
|
(9.1 |
) |
Adjusted Net Income |
|
$ |
20.9 |
|
|
$ |
14.3 |
|
|
$ |
48.8 |
|
|
$ |
32.9 |
|
REV GROUP, INC. AND SUBSIDIARIES ADJUSTED EBITDA OUTLOOK RECONCILIATION (In millions) |
||||||
|
|
Fiscal Year 2023 |
||||
|
|
Low |
|
High |
||
Net income (5) |
|
$ |
26.5 |
|
$ |
37.2 |
Depreciation and amortization |
|
|
26.5 |
|
|
25.5 |
Interest expense, net |
|
|
29.0 |
|
|
27.0 |
Provision for income taxes |
|
|
8.1 |
|
|
11.4 |
EBITDA |
|
|
90.1 |
|
|
101.1 |
Sponsor expense reimbursement |
|
|
0.4 |
|
|
0.4 |
Transaction expense |
|
|
0.5 |
|
|
0.5 |
Restructuring related charges |
|
|
10.5 |
|
|
10.5 |
Stock-based compensation expense |
|
|
14.5 |
|
|
13.5 |
Legal matters |
|
|
16.6 |
|
|
16.6 |
Loss on sale of business |
|
|
1.1 |
|
|
1.1 |
Other items |
|
|
1.3 |
|
|
1.3 |
Adjusted EBITDA |
|
$ |
135.0 |
|
$ |
145.0 |
REV GROUP, INC. AND SUBSIDIARIES ADJUSTED NET INCOME OUTLOOK RECONCILIATION (In millions) |
||||||||
|
|
Fiscal Year 2023 |
||||||
|
|
Low |
|
High |
||||
Net income (5) |
|
$ |
26.5 |
|
|
$ |
37.2 |
|
Amortization of intangible assets |
|
|
3.5 |
|
|
|
3.5 |
|
Transaction expenses |
|
|
0.5 |
|
|
|
0.5 |
|
Sponsor expense reimbursement |
|
|
0.4 |
|
|
|
0.4 |
|
Restructuring related charges |
|
|
10.5 |
|
|
|
10.5 |
|
Stock-based compensation expense |
|
|
14.5 |
|
|
|
13.5 |
|
Legal matters |
|
|
16.6 |
|
|
|
16.6 |
|
Loss on sale of business |
|
|
1.1 |
|
|
|
1.1 |
|
Other items |
|
|
1.3 |
|
|
|
1.3 |
|
Income tax effect of adjustments |
|
|
(11.4 |
) |
|
|
(11.1 |
) |
Adjusted Net Income |
|
$ |
63.5 |
|
|
$ |
73.4 |
|
_____________________ |
5 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/20230913645285/en/
Drew Konop
VP, Investor Relations & Corporate FP&A
Email: investors@revgroup.com
Phone: 1-888-738-4037 (1-888-REVG-037)
Source: REV Group, Inc.