REV Group, Inc. Reports Third Quarter Results
REV Group reported third quarter 2022 net sales of $594.8 million, a slight increase from $593.3 million in the same period last year. However, net income fell to $9.5 million from $23.7 million, and Adjusted EBITDA decreased to $29.5 million compared to $41.6 million year-over-year. The company updated its fiscal 2022 outlook to net sales between $2.25 billion and $2.35 billion. Despite strong demand, challenges such as supply chain disruptions impacted performance in the Fire & Emergency segment, with a backlog of $3.9 billion reported.
- Increased consolidated net sales to $594.8 million.
- Recreation segment sales rose by 19.6% to $254.1 million.
- Record backlog of $3.9 billion.
- Successful share repurchase of 2.1 million shares for $24.1 million.
- Net income decreased to $9.5 million from $23.7 million.
- Adjusted EBITDA declined to $29.5 million from $41.6 million.
- Fire & Emergency segment sales decreased by 14.6% to $230.1 million.
- Supply chain issues led to decreased shipments and impacted profitability.
-
Third quarter net sales of
$594.8 million $593.3 million -
Third quarter net income of
$9.5 million $23.7 million -
Third quarter Adjusted EBITDA1 of
$29.5 million $41.6 million -
Third quarter Adjusted Net Income1 of
$14.3 million $24.5 million -
End of third quarter
$3.9 billion -
Repurchased approximately 2.1 million of its common shares for
$24.1 million -
Updates full-year fiscal 2022 outlook to net sales of
$2.25 $2.35 billion $14 $25 million $44 $54 million $100 $110 million
The company’s third quarter 2022 net income was
“We delivered sequential margin improvement in the third quarter with demand for our vehicles remaining strong. We continue to take actions to offset inflationary pressures and remain focused on operational disciplines to drive margin expansion across our businesses,”
REV Group Third Quarter Segment Highlights
Fire & Emergency Segment
F&E segment net sales were
F&E segment Adjusted EBITDA was
Commercial Segment
Commercial segment net sales were
Commercial segment Adjusted EBITDA was
Recreation Segment
Recreation segment net sales were
Recreation segment Adjusted EBITDA was
Working Capital, Liquidity, and Capital Allocation
Cash and cash equivalents totaled
Updated Fiscal Year 2022 Outlook
|
|
Full Fiscal Year 2022 |
|
||||||||||||||
|
|
Updated Guidance |
|
|
|
Prior Guidance |
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||||||||||
($ in millions) |
|
Low |
|
|
High |
|
|
|
Low |
|
|
High |
|
||||
|
|
$ |
2,250 |
|
|
$ |
2,350 |
|
|
|
$ |
2,250 |
|
|
$ |
2,400 |
|
Net Income |
|
$ |
14 |
|
|
$ |
25 |
|
|
|
$ |
14 |
|
|
$ |
35 |
|
Adjusted EBITDA |
|
$ |
100 |
|
|
$ |
110 |
|
|
|
$ |
100 |
|
|
$ |
120 |
|
Adjusted Net Income |
|
$ |
44 |
|
|
$ |
54 |
|
|
|
$ |
43 |
|
|
$ |
62 |
|
Free Cash Flow 4 |
|
$ |
58 |
|
|
$ |
70 |
|
|
|
$ |
58 |
|
|
$ |
70 |
|
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 2022 third quarter financial results is scheduled for
About
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 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
| ____________________ |
1 |
2 Net Debt is defined as total debt less cash and cash equivalents. |
3 |
4 Free Cash Flow is defined as net cash from operating activities minus capital expenditures. |
|
||||||||
CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEETS |
||||||||
(In millions, except share amounts) |
||||||||
|
|
|
|
|
(Audited) |
|
||
|
|
2022 |
|
|
2021 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
14.8 |
|
|
$ |
13.3 |
|
Accounts receivable, net |
|
|
224.3 |
|
|
|
213.3 |
|
Inventories, net |
|
|
599.3 |
|
|
|
481.7 |
|
Other current assets |
|
|
31.7 |
|
|
|
52.7 |
|
Assets held for sale |
|
|
6.3 |
|
|
|
— |
|
Total current assets |
|
|
876.4 |
|
|
|
761.0 |
|
Property, plant and equipment, net |
|
|
146.1 |
|
|
|
157.6 |
|
|
|
|
157.3 |
|
|
|
157.3 |
|
Intangible assets, net |
|
|
120.5 |
|
|
|
126.3 |
|
Right of use assets |
|
|
20.7 |
|
|
|
19.1 |
|
Other long-term assets |
|
|
11.2 |
|
|
|
17.0 |
|
Total assets |
|
$ |
1,332.2 |
|
|
$ |
1,238.3 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
159.2 |
|
|
$ |
116.2 |
|
Customer advances |
|
|
311.0 |
|
|
|
210.6 |
|
Accrued warranty |
|
|
20.7 |
|
|
|
22.3 |
|
Short-term lease obligations |
|
|
6.9 |
|
|
|
7.1 |
|
Other current liabilities |
|
|
76.9 |
|
|
|
80.8 |
|
Total current liabilities |
|
|
574.7 |
|
|
|
437.0 |
|
Long-term debt |
|
|
250.0 |
|
|
|
215.0 |
|
Deferred income taxes |
|
|
23.6 |
|
|
|
21.4 |
|
Long-term lease obligations |
|
|
14.5 |
|
|
|
12.8 |
|
Other long-term liabilities |
|
|
21.4 |
|
|
|
33.3 |
|
Total liabilities |
|
|
884.2 |
|
|
|
719.5 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Shareholders' Equity: |
|
|
|
|
|
|
||
Preferred stock ( |
|
|
— |
|
|
|
— |
|
Common stock ( and 64,584,291 shares issued and outstanding, respectively) |
|
|
0.1 |
|
|
|
0.1 |
|
Additional paid-in capital |
|
|
434.0 |
|
|
|
502.1 |
|
Retained earnings |
|
|
13.8 |
|
|
|
16.7 |
|
Accumulated other comprehensive income (loss) |
|
|
0.1 |
|
|
|
(0.1 |
) |
Total shareholders' equity |
|
|
448.0 |
|
|
|
518.8 |
|
Total liabilities and shareholders' equity |
|
$ |
1,332.2 |
|
|
$ |
1,238.3 |
|
|
||||||||||||||||
CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||||||
(In millions, except share and per share amounts) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Net sales |
|
$ |
594.8 |
|
|
$ |
593.3 |
|
|
$ |
1,708.1 |
|
|
$ |
1,790.9 |
|
Cost of sales |
|
|
527.0 |
|
|
|
516.7 |
|
|
|
1,527.4 |
|
|
|
1,565.2 |
|
Gross profit |
|
|
67.8 |
|
|
|
76.6 |
|
|
|
180.7 |
|
|
|
225.7 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general and administrative |
|
|
46.1 |
|
|
|
45.2 |
|
|
|
144.2 |
|
|
|
141.0 |
|
Research and development costs |
|
|
0.9 |
|
|
|
0.6 |
|
|
|
2.9 |
|
|
|
3.3 |
|
Amortization of intangible assets |
|
|
1.3 |
|
|
|
2.3 |
|
|
|
5.7 |
|
|
|
7.4 |
|
Restructuring |
|
|
2.3 |
|
|
|
— |
|
|
|
8.9 |
|
|
|
1.0 |
|
Total operating expenses |
|
|
50.6 |
|
|
|
48.1 |
|
|
|
161.7 |
|
|
|
152.7 |
|
Operating income |
|
|
17.2 |
|
|
|
28.5 |
|
|
|
19.0 |
|
|
|
73.0 |
|
Interest expense, net |
|
|
4.3 |
|
|
|
3.4 |
|
|
|
11.2 |
|
|
|
14.4 |
|
Loss on early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.4 |
|
(Gain) loss on sale of business or business held for sale |
|
|
— |
|
|
|
(1.0 |
) |
|
|
0.1 |
|
|
|
2.8 |
|
Loss on acquisition of business, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.4 |
|
Income before provision for income taxes |
|
|
12.9 |
|
|
|
26.1 |
|
|
|
7.7 |
|
|
|
54.0 |
|
Provision for income taxes |
|
|
3.4 |
|
|
|
2.4 |
|
|
|
1.2 |
|
|
|
9.6 |
|
Net income |
|
$ |
9.5 |
|
|
$ |
23.7 |
|
|
$ |
6.5 |
|
|
$ |
44.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.16 |
|
|
$ |
0.37 |
|
|
$ |
0.11 |
|
|
$ |
0.70 |
|
Diluted |
|
$ |
0.16 |
|
|
$ |
0.36 |
|
|
$ |
0.10 |
|
|
$ |
0.68 |
|
Dividends declared per common share |
|
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
0.15 |
|
|
$ |
0.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.24 |
|
|
$ |
0.38 |
|
|
$ |
0.54 |
|
|
$ |
0.92 |
|
Diluted |
|
$ |
0.24 |
|
|
$ |
0.37 |
|
|
$ |
0.53 |
|
|
$ |
0.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted Average Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
59,417,336 |
|
|
|
64,125,216 |
|
|
|
61,291,966 |
|
|
|
63,863,441 |
|
Diluted |
|
|
59,922,851 |
|
|
|
65,379,717 |
|
|
|
61,993,292 |
|
|
|
64,883,139 |
|
|
||||||||
CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(In millions) |
||||||||
|
|
Nine Months Ended
|
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
6.5 |
|
|
$ |
44.4 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
25.2 |
|
|
|
24.2 |
|
Amortization of debt issuance costs |
|
|
1.3 |
|
|
|
1.6 |
|
Stock-based compensation expense |
|
|
6.3 |
|
|
|
5.4 |
|
Deferred income taxes |
|
|
2.2 |
|
|
|
0.4 |
|
Loss on early extinguishment of debt |
|
|
— |
|
|
|
1.4 |
|
Gain on sale of assets |
|
|
(0.5 |
) |
|
|
(1.8 |
) |
Loss on sale of business or business held for sale |
|
|
0.1 |
|
|
|
2.8 |
|
Loss on acquisition of business |
|
|
— |
|
|
|
0.4 |
|
Changes in operating assets and liabilities, net |
|
|
18.4 |
|
|
|
21.8 |
|
Net cash provided by operating activities |
|
|
59.5 |
|
|
|
100.6 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchase of property, plant and equipment |
|
|
(15.9 |
) |
|
|
(13.9 |
) |
Proceeds from sale of assets |
|
|
2.8 |
|
|
|
12.5 |
|
Proceeds from sale of investment in |
|
|
1.8 |
|
|
|
— |
|
Other investing activities |
|
|
— |
|
|
|
2.0 |
|
Net cash (used in) provided by investing activities |
|
|
(11.3 |
) |
|
|
0.6 |
|
Cash flows from financing activities: |
|
|
|
|
|
|
||
Net proceeds from borrowings on revolving credit facility |
|
|
35.0 |
|
|
|
210.0 |
|
Repayment of long-term debt |
|
|
— |
|
|
|
(303.4 |
) |
Payment of dividends |
|
|
(9.4 |
) |
|
|
(3.3 |
) |
Payment of debt issuance costs |
|
|
— |
|
|
|
(7.0 |
) |
Repurchase and retirement of common stock |
|
|
(70.0 |
) |
|
|
— |
|
Other financing activities |
|
|
(2.3 |
) |
|
|
0.3 |
|
Net cash used in financing activities |
|
|
(46.7 |
) |
|
|
(103.4 |
) |
Net increase (decrease) in cash and cash equivalents |
|
|
1.5 |
|
|
|
(2.2 |
) |
Cash and cash equivalents, beginning of period |
|
|
13.3 |
|
|
|
11.4 |
|
Cash and cash equivalents, end of period |
|
$ |
14.8 |
|
|
$ |
9.2 |
|
|
|
|
|
|
|
|
||
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
||
Cash paid (received) for: |
|
|
|
|
|
|
||
Interest |
|
$ |
7.6 |
|
|
$ |
12.3 |
|
Income taxes, net of refunds |
|
$ |
(15.1 |
) |
|
$ |
(0.1 |
) |
|
||||||||||||||||
SEGMENT INFORMATION |
||||||||||||||||
(In millions; unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fire & Emergency |
|
$ |
230.1 |
|
|
$ |
269.5 |
|
|
$ |
712.5 |
|
|
$ |
857.7 |
|
Commercial |
|
|
111.0 |
|
|
|
111.3 |
|
|
|
299.2 |
|
|
|
292.8 |
|
Recreation |
|
|
254.1 |
|
|
|
212.5 |
|
|
|
697.7 |
|
|
|
640.5 |
|
Corporate & Other |
|
|
(0.4 |
) |
|
|
- |
|
|
|
(1.3 |
) |
|
|
(0.1 |
) |
Total |
|
$ |
594.8 |
|
|
$ |
593.3 |
|
|
$ |
1,708.1 |
|
|
$ |
1,790.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fire & Emergency |
|
$ |
1.0 |
|
|
$ |
15.8 |
|
|
$ |
0.6 |
|
|
$ |
47.6 |
|
Commercial |
|
|
6.8 |
|
|
|
9.7 |
|
|
|
19.0 |
|
|
|
25.1 |
|
Recreation |
|
|
29.8 |
|
|
|
24.1 |
|
|
|
75.6 |
|
|
|
64.3 |
|
Corporate & Other |
|
|
(8.1 |
) |
|
|
(8.0 |
) |
|
|
(23.6 |
) |
|
|
(26.6 |
) |
Total |
|
$ |
29.5 |
|
|
$ |
41.6 |
|
|
$ |
71.6 |
|
|
$ |
110.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fire & Emergency |
|
|
0.4 |
% |
|
|
5.9 |
% |
|
|
0.1 |
% |
|
|
5.5 |
% |
Commercial |
|
|
6.1 |
% |
|
|
8.7 |
% |
|
|
6.4 |
% |
|
|
8.6 |
% |
Recreation |
|
|
11.7 |
% |
|
|
11.3 |
% |
|
|
10.8 |
% |
|
|
10.0 |
% |
Total |
|
|
5.0 |
% |
|
|
7.0 |
% |
|
|
4.2 |
% |
|
|
6.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Period-End Backlog: |
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
||||
Fire & Emergency |
|
$ |
2,163.1 |
|
|
$ |
1,788.3 |
|
|
$ |
1,655.1 |
|
|
$ |
1,229.5 |
|
Commercial |
|
|
530.7 |
|
|
|
531.1 |
|
|
|
459.8 |
|
|
|
312.0 |
|
Recreation |
|
|
1,242.9 |
|
|
|
1,302.7 |
|
|
|
1,282.6 |
|
|
|
1,157.0 |
|
Total |
|
$ |
3,936.7 |
|
|
$ |
3,622.1 |
|
|
$ |
3,397.5 |
|
|
$ |
2,698.5 |
|
|
||||||||||||||||||||
ADJUSTED EBITDA BY SEGMENT |
||||||||||||||||||||
(In millions; unaudited) |
||||||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||||||
|
|
Fire & Emergency |
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Three Months Ended |
|
|||||||||||||||||
|
|
Fire & Emergency |
|
|
Commercial |
|
|
Recreation |
|
|
Corporate & Other |
|
|
Total |
|
|||||
Net income (loss) |
|
$ |
10.6 |
|
|
$ |
8.9 |
|
|
$ |
20.6 |
|
|
$ |
(16.4 |
) |
|
$ |
23.7 |
|
Depreciation and amortization |
|
|
2.9 |
|
|
|
0.7 |
|
|
|
3.5 |
|
|
|
0.5 |
|
|
|
7.6 |
|
Interest expense, net |
|
|
1.4 |
|
|
|
0.1 |
|
|
|
— |
|
|
|
1.9 |
|
|
|
3.4 |
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.4 |
|
|
|
2.4 |
|
EBITDA |
|
|
14.9 |
|
|
|
9.7 |
|
|
|
24.1 |
|
|
|
(11.6 |
) |
|
|
37.1 |
|
Transaction expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.5 |
|
|
|
0.5 |
|
Legal matters |
|
|
1.7 |
|
|
|
— |
|
|
|
— |
|
|
|
1.1 |
|
|
|
2.8 |
|
Stock-based compensation expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.9 |
|
|
|
1.9 |
|
Net (gain) loss on sale of assets and business held for sale |
|
|
(1.1 |
) |
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
(1.0 |
) |
Losses attributable to assets held for sale |
|
|
0.3 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
0.3 |
|
|
Adjusted EBITDA |
|
$ |
15.8 |
|
|
$ |
9.7 |
|
|
$ |
24.1 |
|
|
$ |
(8.0 |
) |
|
$ |
41.6 |
|
|
||||||||||||||||||||
ADJUSTED EBITDA BY SEGMENT |
||||||||||||||||||||
(In millions; unaudited) |
||||||||||||||||||||
|
|
Nine Months Ended |
|
|||||||||||||||||
|
|
Fire & Emergency |
|
|
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 |
|
Provision 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 |
|
Net loss on sale of assets and business held for sale |
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
Adjusted EBITDA |
|
$ |
0.6 |
|
|
$ |
19.0 |
|
|
$ |
75.6 |
|
|
$ |
(23.6 |
) |
|
$ |
71.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Nine Months Ended |
|
|||||||||||||||||
|
|
Fire & Emergency |
|
|
Commercial |
|
|
Recreation |
|
|
Corporate & Other |
|
|
Total |
|
|||||
Net income (loss) |
|
$ |
29.6 |
|
|
$ |
22.3 |
|
|
$ |
53.5 |
|
|
$ |
(61.0 |
) |
|
$ |
44.4 |
|
Depreciation & amortization |
|
|
9.0 |
|
|
|
2.2 |
|
|
|
10.7 |
|
|
|
2.3 |
|
|
|
24.2 |
|
Interest expense, net |
|
|
4.3 |
|
|
|
0.6 |
|
|
|
0.1 |
|
|
|
9.4 |
|
|
|
14.4 |
|
Loss on early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.4 |
|
|
|
1.4 |
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9.6 |
|
|
|
9.6 |
|
EBITDA |
|
|
42.9 |
|
|
|
25.1 |
|
|
|
64.3 |
|
|
|
(38.3 |
) |
|
|
94.0 |
|
Transaction expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3.2 |
|
|
|
3.2 |
|
Sponsor expense reimbursement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
0.2 |
|
Restructuring costs |
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
0.9 |
|
|
|
1.0 |
|
Restructuring related charges |
|
|
0.3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.3 |
|
Stock-based compensation expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5.5 |
|
|
|
5.5 |
|
Legal matters |
|
|
1.7 |
|
|
|
— |
|
|
|
— |
|
|
|
1.4 |
|
|
|
3.1 |
|
Net loss on sale of assets and business held for sale |
|
|
1.6 |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
1.7 |
|
Loss on acquisition of business |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.4 |
|
|
|
0.4 |
|
Loss attributable to assets held for sale |
|
|
1.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.0 |
|
Adjusted EBITDA |
|
$ |
47.6 |
|
|
$ |
25.1 |
|
|
$ |
64.3 |
|
|
$ |
(26.6 |
) |
|
$ |
110.4 |
|
|
||||||||||||||||
ADJUSTED NET INCOME |
||||||||||||||||
(In millions; unaudited) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Net income |
|
$ |
9.5 |
|
|
$ |
23.7 |
|
|
$ |
6.5 |
|
|
$ |
44.4 |
|
Amortization of intangible assets |
|
|
1.3 |
|
|
|
2.3 |
|
|
|
5.7 |
|
|
|
7.4 |
|
Transaction expenses |
|
|
0.1 |
|
|
|
0.5 |
|
|
|
0.6 |
|
|
|
3.2 |
|
Sponsor expense reimbursement |
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
0.2 |
|
Restructuring costs |
|
|
2.3 |
|
|
|
— |
|
|
|
8.9 |
|
|
|
1.0 |
|
Restructuring related charges |
|
|
— |
|
|
|
— |
|
|
|
5.1 |
|
|
|
0.3 |
|
Stock-based compensation expense |
|
|
1.8 |
|
|
|
1.9 |
|
|
|
6.3 |
|
|
|
5.5 |
|
Legal matters |
|
|
1.2 |
|
|
|
2.8 |
|
|
|
6.4 |
|
|
|
3.1 |
|
Net (gain) loss on sale of assets and business held for sale |
|
|
— |
|
|
|
(1.0 |
) |
|
|
0.1 |
|
|
|
1.7 |
|
Loss on acquisition of business |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.4 |
|
Losses attributable to assets held for sale |
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
|
|
1.0 |
|
Accelerated depreciation on certain property, plant, and equipment |
|
|
— |
|
|
|
— |
|
|
|
2.3 |
|
|
|
— |
|
Loss on early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.4 |
|
Impact of tax rate change |
|
|
— |
|
|
|
(4.2 |
) |
|
|
— |
|
|
|
(4.2 |
) |
Income tax effect of adjustments |
|
|
(1.9 |
) |
|
|
(1.8 |
) |
|
|
(9.1 |
) |
|
|
(6.4 |
) |
Adjusted Net Income |
|
$ |
14.3 |
|
|
$ |
24.5 |
|
|
$ |
32.9 |
|
|
$ |
59.0 |
|
|
||||||||
ADJUSTED EBITDA OUTLOOK RECONCILIATION |
||||||||
(In millions) |
||||||||
|
|
Fiscal Year 2022 |
|
|||||
|
|
Low |
|
|
High |
|
||
Net income1 |
|
$ |
14.3 |
|
|
$ |
25.0 |
|
Depreciation and amortization |
|
|
33.5 |
|
|
|
31.5 |
|
Interest expense, net |
|
|
17.0 |
|
|
|
15.0 |
|
Provision for income taxes |
|
|
4.0 |
|
|
|
8.5 |
|
EBITDA |
|
|
68.8 |
|
|
|
80.0 |
|
Transaction expenses |
|
|
0.6 |
|
|
|
0.6 |
|
Sponsor expense reimbursement |
|
|
0.1 |
|
|
|
0.1 |
|
Restructuring costs |
|
|
9.4 |
|
|
|
8.9 |
|
Restructuring related charges |
|
|
5.6 |
|
|
|
5.1 |
|
Stock-based compensation expense |
|
|
9.0 |
|
|
|
8.8 |
|
Legal matters |
|
|
6.4 |
|
|
|
6.4 |
|
Net loss on sale of assets and business held for sale |
|
|
0.1 |
|
|
|
0.1 |
|
Adjusted EBITDA |
|
$ |
100.0 |
|
|
$ |
110.0 |
|
|
|
|
|
|
|
|
||
|
||||||||
ADJUSTED NET INCOME OUTLOOK RECONCILIATION |
||||||||
(In millions) |
||||||||
|
|
Fiscal Year 2022 |
|
|||||
|
|
Low |
|
|
High |
|
||
Net income1 |
|
$ |
14.3 |
|
|
$ |
25.0 |
|
Amortization of intangible assets |
|
|
7.1 |
|
|
|
7.1 |
|
Transaction expenses |
|
|
0.6 |
|
|
|
0.6 |
|
Sponsor expense reimbursement |
|
|
0.1 |
|
|
|
0.1 |
|
Restructuring costs |
|
|
9.4 |
|
|
|
8.9 |
|
Restructuring related charges |
|
|
5.6 |
|
|
|
5.1 |
|
Stock-based compensation expense |
|
|
9.0 |
|
|
|
8.8 |
|
Legal matters |
|
|
6.4 |
|
|
|
6.4 |
|
Net loss on sale of assets and business held for sale |
|
|
0.1 |
|
|
|
0.1 |
|
Accelerated depreciation on certain property, plant, and equipment |
|
|
2.3 |
|
|
|
2.3 |
|
Income tax effect of adjustments |
|
|
(10.4 |
) |
|
|
(10.0 |
) |
Adjusted Net Income |
|
$ |
44.5 |
|
|
$ |
54.4 |
|
____________________ |
|
|
|
|
|
|
||
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/20220907005354/en/
VP, Investor Relations & Corporate Development
Email: investors@revgroup.com
Phone: 1-888-738-4037 (1-888-REVG-037)
Source:
FAQ
What were REV Group's third quarter 2022 earnings results?
How did REV Group's sales perform in the Recreation segment for Q3 2022?
What is REV Group's updated guidance for fiscal year 2022?
What were the challenges faced by REV Group during Q3 2022?
What was REV Group's backlog at the end of Q3 2022?
