- Net sales of $597.7 million,
representing growth of 0.4% compared to the prior year1
quarter
- Third quarter net income of $18.3
million ($0.28 per diluted share), an increase of 20.4% compared to
the prior year quarter
- Third quarter Adjusted EBITDA2 of $47.6
million (8.0% of net sales) was $2.1 million better than the prior
year quarter
- Third quarter Adjusted Net Income of
$24.7 million ($0.38 per diluted share) vs. $21.9 million ($0.33
per diluted share) in the prior year quarter
- End markets remain positive with total
backlog of $1,276.0 million as of July 31, 2018 an increase of
34.1% compared to the prior year quarter
- Third quarter continued to be impacted
by chassis and material availability issues which are expected to
persist through the end of the calendar year
- Company reduces its full-year 2018
outlook primarily due to continued chassis availability issues and
impact of longer material lead times
- Company repurchased approximately 2.5
million shares for $40.7 million under its share repurchase
authorization during the third quarter (average share repurchase
price of $16.42); REV Board has authorized an additional $50
million share repurchase program which can be completed over the
next 24 months
REV Group, Inc. (NYSE: REVG), a manufacturer of industry-leading
specialty vehicle brands, today reported results for the three
months ended July 31, 2018 (“third quarter 2018”). Consolidated net
sales in the third quarter 2018 were $597.7 million, representing
growth of 0.4% over the three months ended July 29, 2017 (“third
quarter 2017”). The Company’s third quarter 2018 net income was
$18.3 million, or $0.28 per diluted share, representing net income
growth of 20.4% compared to the third quarter 2017. Adjusted Net
Income2 for the third quarter 2018 was $24.7 million, or
$0.38 per diluted share, an increase of 12.8% compared to
$21.9 million, or $0.33 per diluted share, in the third quarter
2017. Adjusted EBITDA2 in the third quarter 2018 was
$47.6 million, $2.1 million better than the third quarter
2017. The Company ended the quarter with total backlog of $1,276.0
million, up 0.4% sequentially, representing growth in line with
historical seasonality of its businesses, and up 34.1% versus third
quarter 2017.
“The availability of commercial chassis was a bigger headwind in
the third quarter than previously anticipated, and we now don’t
anticipate a return to normalcy until the end of the calendar year.
In addition, during the quarter we experienced a significant
lengthening of other material lead times creating additional
production inefficiencies. Together these issues delayed product
shipments beyond the quarter within all three of our segments and
we expect this to continue through the fourth quarter,” commented
Tim Sullivan, CEO REV Group. “In addition, certain business units
including our Class A RV, specialty products, and parts business
have underperformed our targets and we are taking specific actions
to address these areas. We believe the material and chassis
availability issues can be resolved by calendar year end. More
importantly, we were able to largely mitigate the impacts of cost
inflation and preserve margins in the quarter through price
increases and our previously announced cost reductions.”
Mr. Sullivan added, “We remain encouraged by continued strength
of orders for most of our product categories and our resulting
backlogs at the end of the quarter. We have not changed our
long-term objectives and believe in our opportunities for continued
margin expansion in fiscal 2019 and beyond despite the current
supply chain issues. In addition, our leadership position in our
markets remains strong. We expect to close the year with good
momentum going into fiscal 2019 supported by strong backlogs and a
reduced cost infrastructure. We will continue to evaluate
opportunities to drive increased returns to shareholders in the
upcoming quarter and in the next fiscal year and beyond. In the
third quarter 2018 we repurchased $40.7 million of our shares and
our board of directors recently increased our share repurchase
authorization by an additional $50 million, for a total of $55
million remaining under board authorizations.”
______________________
1 REV Group, Inc. changed its fiscal year end from the last
Saturday to the last calendar day in October of each year. In
addition, starting in fiscal 2018, the Company’s fiscal quarters
will end on the last day of January, April, July and October.
2 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. Note: These figures do not include the
impact of acquisitions before their acquisition dates.
REV Group Segment Highlights
Fire & Emergency Segment
Fire & Emergency (“F&E”) segment net sales were $238.9
million in the third quarter 2018, a decrease of $23.2 million, or
8.9%, from $262.1 million in the third quarter 2017. The decrease
in net sales was primarily due to chassis supply disruptions which
resulted in lower ambulance unit shipments for the quarter as well
as by the timing of fire truck shipments compared to the prior year
period. F&E backlog at the end of the third quarter 2018 was up
2.7% to $606.5 million compared to $590.3 million at the end of
fiscal year 2017, and down per normal seasonality from $633.8
million at the end of the second quarter 2018.
F&E segment Adjusted EBITDA was $25.3 million in the third
quarter 2018, a decrease of $3.7 million, or 12.8%, from $29.0
million in the third quarter 2017. The decrease in Adjusted EBITDA
was due to decreased gross profit driven by a decrease in ambulance
shipments partially offset by favorable selling, general and
administrative expenses. Third quarter 2018 F&E segment
Adjusted EBITDA margin was 10.6% of net sales compared to 11.1% in
the third quarter 2017 and up sequentially from 8.6% in the second
quarter 2018.
Mr. Sullivan commented, “Our backlog is healthy, and we expect
to continue benefiting from positive macro trends that are driving
demand for our Fire & Emergency products. We also remain
encouraged by our opportunity to drive margin expansion in fiscal
2019 and over the long-term in this segment, as we anticipate
profitability levels of acquired businesses will continue to
improve and our recent pricing actions will offset to a greater
degree our material cost increases. We believe the chassis and
material lead time issues which impacted our third quarter and will
continue to impact the segment in the fourth quarter should result
in future earnings and cash generation when delayed shipments are
fulfilled.”
Commercial Segment
Commercial segment net sales were $157.6 million in the third
quarter 2018, an increase of $3.2 million, or 2.1%, from $154.4
million in the third quarter of 2017. The increase in net sales was
due primarily to an increase in shuttle bus, school bus, mobility
van and terminal truck units sold compared to the prior year
period. Commercial sales were also negatively impacted by chassis
availability in the quarter, specifically in our Bus division.
Commercial backlog at the end of the third quarter was $420.0
million, an increase of 14.6% compared to $366.4 million at the end
of fiscal year 2017, and up 5.7% from $397.2 million at the end of
the second quarter 2018.
Commercial segment Adjusted EBITDA was $11.8 million in the
third quarter 2018, a decrease of $1.1 million, or 8.5%, from $12.9
million in the third quarter 2017. This decrease was primarily due
to mix as a result of reduced volumes of product lines such as
transit bus units sold compared to the prior year. In addition, our
specialty product lines underperformed our expectations and we are
taking actions to address the underlying issues. Adjusted EBITDA
margin was 7.5% of net sales in the third quarter 2018 compared to
8.4% in the third quarter 2017 and up sequentially from 6.0% in the
second quarter 2018.
Mr. Sullivan commented, “We’re maintaining strong market share
in school buses and have begun participating in more commercial bus
activity recently. We were pleased to see sequential margin
improvement in the segment during the quarter despite complications
related to the availability of certain commercial chassis. We also
expect the return to prior year and greater product sales volumes
of both transit buses and commercial school buses in fiscal 2019
which will provide a significant tailwind to our Commercial segment
profitability.”
Recreation Segment
Recreation segment net sales were $197.3 million in the third
quarter 2018, an increase of $19.4 million, or 10.9%, from $177.9
million in the third quarter 2017. The increase in net sales was
due to net sales attributable to our recent acquisition of Lance
and increases in net sales across our brand line-up except for
Class A motorhomes, which declined compared to the prior year
period due to a strategic reduction in the number of models
produced and the timing of new model year introductions this fiscal
year. Excluding the impact of net sales from Lance, Recreation
segment net sales decreased by $15.2 million compared to the prior
year period, as a result of the reduction in Class A unit volume.
Sales for all other Recreation segment product categories were up
in the third quarter 2018 by double-digit percentages versus the
same period in the prior year. Recreation segment backlog at the
end of the third quarter 2018 was $249.5 million, which was up
72.3% from $144.8 million at the end of fiscal year 2017, and up
4.2% from the end of the second quarter 2018.
Recreation segment Adjusted EBITDA was $17.9 million in the
third quarter 2018, an increase of $6.2 million, or 53.0%, from
$11.7 million for the third quarter 2017. The increase in Adjusted
EBITDA was due to the impact of the acquisition of Lance and
increased profitability at our Midwest and Renegade businesses
along with our Goldshield fiberglass business. Adjusted EBITDA
margin improved by 250 basis points to 9.1% of net sales in the
third quarter 2018 compared to 6.6% in the third quarter 2017 and
up from 6.4% in the second quarter of 2018. Excluding the impact of
the acquisition of Lance, Recreation segment Adjusted EBITDA
increased 7.3% in the third quarter 2018 compared to the prior year
period.
Mr. Sullivan commented, “We were pleased with our ability to
drive margin improvement across our Recreation business lines
during the third quarter despite ongoing efforts to reposition our
Class A product portfolio. The strength of recent acquisitions
continues to improve profitability of this segment but also
highlights the benefits of our overall acquisition growth strategy.
We believe the diversification of our Recreation segment will
continue enabling us to participate in the stronger areas of this
market and further broaden our product portfolio and value
proposition for dealer partners. Additionally, we expect the Lance
acquisition to help accelerate the pace of profitability
improvement in the segment over the course of the next several
quarters.”
Working Capital, Liquidity, and Capital Allocation
Net working capital3 for the Company at July 31, 2018 was $434.8
million compared to $299.7 million at the end of fiscal year 2017
and $358.1 million in the prior year quarter. The increase in
working capital versus the prior year quarter was due to the impact
of the Lance acquisition, indirect impact from the chassis
availability and material lead time issues and higher seasonal
fourth quarter production and shipment expectations. Per our normal
seasonality, we expect net working capital to be a source of cash
in our fiscal fourth quarter.
Cash and equivalents totaled $14.7 million at July 31, 2018. Net
debt4 at July 31, 2018 was $427.0 million. As of July 31, 2018, the
Company had $119.4 million available under its ABL revolving credit
facility. Capital expenditures in the third quarter 2018 were $8.2
million compared to $11.8 million in the prior year quarter. During
the quarter the Company repurchased a total of 2,475,967 of its own
shares for $40.7 million, an average repurchase price of $16.42 per
share. To date the company has repurchased a total of 2,714,514
shares for a total of $45.5 million. Shares outstanding as of July
31, 2018 were 63,191,445.
______________________
3 Net Working Capital is defined as current assets (excluding
cash) less current liabilities (excluding current portion of long
term debt)
4 Net Debt is defined as total debt (net of deferred financing
costs) less cash and cash equivalents.
Outlook
REV has revised its full-year 2018 outlook to reflect
lower-than-expected third-quarter performance and a continuation of
negative factors that impacted sales and earnings during the prior
two quarters through the end of the fiscal year. The Company now
expects full-year 2018 results in the following ranges:
- Full-year 2018 revenue of $2.4 to $2.5
billion
- Net Income of $57.9 to $69.0
million
- Adjusted EBITDA of $160.0 to $170.0
million
- Adjusted Net Income of $80.7 to $88.8
million
Mr. Sullivan commented, “We are disappointed with our financial
results through the first three quarters of this year and our
expectations today for the full fiscal year. We are focused on
quickly addressing the issues which have impacted our financial
performance this year and remain steadfast regarding our
opportunity to grow our sales and earnings in fiscal 2019 and over
the long term. The supply chain imbalances that have developed this
year and were triggered by the tariff discussions will take months
to work through the system, but they are not permanent, and we are
very bullish on our long-term prospects. Fiscal 2019 is setting up
to be a strong year, especially with the rebound we foresee in some
of the higher margin businesses that have experienced lower volumes
this fiscal year.”
Quarterly Dividend
Our board of directors declared a quarterly dividend for our
third quarter of 2018, payable on November 30, 2018, to holders of
record on October 31, 2018, 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.
Conference Call
REV Group, Inc. will host a conference call to discuss its third
quarter 2018 results and outlook on September 6th at 11:00 a.m.
EDT. A supplemental earnings slide deck will be available tomorrow
morning on the REV Group, Inc. investor relations website prior to
the call. 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, Inc. (NYSE: REVG) is a leading designer, manufacturer
and distributor 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 (ambulances, fire
apparatus, school buses, mobility vans and municipal transit
buses), industrial and commercial (terminal trucks, cut-away buses
and street sweepers) and consumer leisure (recreational vehicles
(“RVs”) and luxury buses). Our brand portfolio consists of 30
well-established principal vehicle brands including many of the
most recognizable names within our served markets. Several of our
brands pioneered their specialty vehicle product categories and
date back more than 50 years.
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 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
for the add-back of non-cash intangible asset amortization and
stock-based compensation.
The Company believes that the use of Adjusted EBITDA and
Adjusted Net Income 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.
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.
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.
Investors-REVG
REV GROUP, INC. CONDENSED UNAUDITED
CONSOLIDATED BALANCE SHEETS (Dollars in millions)
(Unaudited) July 31, October 31, 2018
2017 ASSETS Current assets: Cash and cash equivalents $ 14.7
$ 17.8 Accounts receivable, net 232.8 243.2 Inventories, net 531.5
452.4 Other current assets 24.2 13.4 Total current
assets 803.2 726.8 Property, plant and equipment, net 241.1
217.1 Goodwill 162.6 133.2 Intangibles assets, net 179.9 167.9
Other long-term assets 16.3 9.4 Total assets $
1,403.1 $ 1,254.4 LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities: Current portion of long-term debt $ 1.3 $ 0.8
Accounts payable 167.2 217.2 Customer advances 110.8 95.8 Accrued
warranty 19.6 26.0 Other current liabilities 56.1
70.2
Total current liabilities
355.0 410.0 Long-term debt, less current maturities 440.4
229.1 Deferred income taxes 24.5 22.5 Other long-term liabilities
19.8 20.3 Total liabilities 839.7 681.9
Commitments and contingencies Shareholders’ equity 563.4
572.5 Total liabilities and shareholders’ equity $
1,403.1 $ 1,254.4
REV GROUP,
INC. CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF
INCOME (Unaudited; dollars in millions, except shares and
per share amounts) Three Months Ended Nine
Months Ended
July 31,2018
July 29,2017
July 31,2018
July 29,2017
Net sales $ 597.7 $ 595.6 $ 1,721.4 $ 1,583.9 Cost of
sales 518.2 517.6 1,516.6
1,385.5 Gross profit 79.5 78.0 204.8 198.4 Operating
expenses: Selling, general and administrative 43.5 40.6 133.2 139.7
Research and development costs 1.6 1.2 4.9 3.4 Restructuring 0.9
2.3 6.9 3.5 Amortization of intangible assets 4.6 5.1
13.6 10.4 Total operating expenses
50.6 49.2 158.6 157.0
Operating income 28.9 28.8 46.2 41.4 Interest expense, net
6.8 4.5 18.3 15.4 Loss on early extinguishment of debt —
— — 11.9 Income before provision
(benefit) for income taxes 22.1 24.3 27.9 14.1 Provision
(benefit) for income taxes 3.8 9.1 (7.2 )
5.4 Net income $ 18.3 $ 15.2 $ 35.1 $ 8.7
Income per common share: Basic $ 0.29 $ 0.24 $ 0.55 $
0.15 Diluted $ 0.28 $ 0.23 $ 0.53 $ 0.14
Dividends
declared per common share $ 0.05 $ 0.05 $ 0.15 $ 0.10
Adjusted earnings per common share: Basic $ 0.39 $ 0.34 $
0.79 $ 0.78 Diluted $ 0.38 $ 0.33 $ 0.77 $ 0.76
Weighted
Average Shares Outstanding: Basic 63,993,398 63,769,388
64,258,655 59,617,447 Diluted 64,847,561 65,528,691 65,832,682
61,301,236
REV GROUP, INC. CONDENSED
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited;
dollars in millions) Nine Months Ended
July 31,2018
July 29,2017
Cash flows from operating activities: Net income $ 35.1 $
8.7 Adjustments to reconcile net income to net cash used in
operating activities: Depreciation and amortization 33.9 26.8
Amortization of debt issuance costs 1.3 1.3 Amortization of Senior
Note discount - 0.1 Stock-based compensation expense 5.1 26.1
Deferred income taxes (0.8 ) (5.1 ) Loss on early extinguishment of
debt - 11.9 Gain on disposal of property, plant and equipment (2.2
) (0.6 ) Changes in operating assets and liabilities, net of
effects of business acquisitions: (129.2 ) (129.2 )
Net cash used in operating activities (56.8 ) (60.0 )
Cash flows from investing activities: Purchase of property, plant
and equipment (31.9 ) (49.9 ) Purchase of rental fleet vehicles
(15.9 ) (9.7 ) Proceeds from sale of property, plant and equipment
6.4 3.6 Investment in China JV (7.6 ) - Acquisition of businesses,
net of cash acquired (60.1 ) (155.1 ) Net cash
used in investing activities (109.1 ) (211.1 ) Cash flows
from financing activities: Net proceeds from borrowings under
revolving credit facility 161.5 146.4 Proceeds from Term Loan 50.0
75.0 Net proceeds from initial public offering - 253.6 Payment of
dividends (9.7 ) (3.2 ) Payment of debt issuance costs (0.9 ) (6.7
) Repayment of long-term debt - (180.0 ) Senior Note prepayment
premium - (7.7 ) Redemption of common stock options including
employer payroll taxes (1.9 ) (3.3 ) Payments of withholding and
employer payroll taxes for vesting of restricted stock (0.1 ) -
Proceeds from exercise of common stock options, net of employer
payroll taxes 9.4 0.3 Repurchase and retirement of common stock
(45.5 ) - Net cash provided by
financing activities 162.8 274.4
Net (decrease) increase in cash and cash equivalents (3.1 ) 3.3
Cash and cash equivalents, beginning of period 17.8
10.8 Cash and cash equivalents, end of period
$ 14.7 $ 14.1
REV GROUP, INC.
SEGMENT INFORMATION (Unaudited; dollars in millions)
Three Months Ended
Nine Months Ended
July 31,2018
July 29,2017
July 31,2018
July 29,2017
Net
Sales:
Fire & Emergency $ 238.9 $ 262.1 $ 706.1 $ 666.5 Commercial
157.6 154.4 447.9 444.2 Recreation 197.3 177.9 563.4 470.9
Corporate & Other 3.9 1.2
4.0 2.3 Total Company Net Sales $ 597.7
$ 595.6 $ 1,721.4 $ 1,583.9
Adjusted
EBITDA:
Fire & Emergency $ 25.3 $ 29.0 $ 65.5 $ 70.2 Commercial 11.8
12.9 25.7 35.6 Recreation 17.9 11.7 38.7 21.8 Corporate & Other
(7.4 ) (8.1 ) (25.6 ) (23.5 ) Total
Company Adjusted EBITDA $ 47.6 $ 45.5 $ 104.3
$ 104.1
Adjusted EBITDA
Margin:
Fire & Emergency 10.6 % 11.1 % 9.3 % 10.5 % Commercial 7.5 %
8.4 % 5.7 % 8.0 % Recreation 9.1 % 6.6 % 6.9 % 4.6 % Corporate
& Other n/m n/m n/m n/m Total Company Adjusted EBITDA Margin
8.0 % 7.6 % 6.1 % 6.6 %
Period-End
Backlog:
July 31,2018
April 30,2018
January 31,2018
October 31,2017
July 29,2017
Fire & Emergency $ 606.5 $ 633.8 $ 622.3 $ 590.3 $ 580.6
Commercial 420.0 397.2 337.8 366.4 254.8 Recreation 249.5
239.5 281.8 144.8
116.1 Total Company Backlog $ 1,276.0 $ 1,270.5
$ 1,241.9 $ 1,101.5 $ 951.5
REV GROUP, INC. ADJUSTED
EBITDA BY SEGMENT (Unaudited; dollars in millions)
Three Months Ended July 31, 2018 Fire &
Emergency Commercial Recreation Corporate
& Other Total Net Income (loss) $ 21.0 $ 9.3
$ 13.8 $ (25.8 ) $ 18.3 Depreciation & amortization 3.3
1.9 3.6 2.9 11.7 Interest expense, net 0.9 0.6 — 5.3 6.8 Provision
for income taxes
— —
— 3.8
3.8 EBITDA 25.2 11.8 17.4 (13.8 ) 40.6 Sponsor
expenses — — — 0.2 0.2 Restructuring costs 0.1 — — 0.8 0.9
Stock-based compensation expense — — — 1.4 1.4 Non-cash purchase
accounting — — 0.5 — 0.5 Legal matters — — — 1.1 1.1 Initial public
company costs — — — 1.0 1.0 Deferred purchase price payment
— — —
1.9 1.9 Adjusted EBITDA
$ 25.3 $ 11.8
$ 17.9 $ (7.4
) $ 47.6
Three Months Ended July 29, 2017 Fire & Emergency
Commercial Recreation Corporate & Other
Total Net Income (loss) $ 21.9 $ 8.9 $ 7.5 $ (23.1 )
$ 15.2 Depreciation & amortization 4.5
2.4
3.5
1.2 11.6 Interest expense, net 1.0
0.5
—
3.0 4.5 Provision for income taxes —
—
—
9.1
9.1 EBITDA 27.4 11.8 11.0
(9.8 ) 40.4 Transaction expenses —
—
—
0.5 0.5 Sponsor expenses —
—
—
0.1 0.1 Restructuring costs 0.4
1.1
—
0.8 2.3 Stock-based compensation expense —
—
—
0.3 0.3 Non-cash purchase accounting 1.2
—
0.7
— 1.9 Adjusted EBITDA $ 29.0 $ 12.9 $ 11.7 $
(8.1 ) $ 45.5
REV
GROUP, INC. ADJUSTED EBITDA BY SEGMENT (Unaudited;
dollars in millions) Nine Months Ended July 31,
2018 Fire & Emergency Commercial
Recreation Corporate & Other Total
Net Income (loss) $ 49.0 $ 15.5 $ 26.0 $ (55.4 ) $ 35.1
Depreciation & amortization 11.9 7.4 9.5 5.1 33.9 Interest
expense, net 2.9 2.0 0.3 13.1 18.3 Benefit for income taxes
— — —
(7.2 ) (7.2
) EBITDA 63.8 24.9 35.8 (44.4 ) 80.1
Restructuring costs 0.4 0.2 2.4 3.9 6.9 Transaction expenses 0.2 —
— 1.9 2.1 Stock-based compensation expense — — — 5.1 5.1 Non-cash
purchase accounting expense 0.4 0.3 0.5 — 1.2 Sponsor expenses — —
— 0.5 0.5 Legal matters 0.7 0.3 — 1.8 2.8 Initial public company
costs — — — 1.5 1.5 Deferred purchase price payment
— — —
4.1 4.1 Adjusted
EBITDA
$ 65.5 $
25.7 $ 38.7 $
(25.6 ) $ 104.3
Nine Months Ended July 29, 2017 Fire
& Emergency Commercial Recreation
Corporate & Other Total Net Income (loss)
$ 54.5 $ 25.5 $ 11.5 $ (82.8 ) $ 8.7 Depreciation &
amortization 10.2 6.0 8.3 2.3 26.8 Interest expense, net 3.2 1.8 —
10.4 15.4 Provision for income taxes — — — 5.4 5.4 Loss on early
extinguishment of debt
— —
— 11.9
11.9 EBITDA 67.9 33.3 19.8 (52.8 ) 68.2
Transaction expenses 0.7 — — 2.0 2.7 Sponsor expenses — — — 0.4 0.4
Restructuring costs 0.4 2.3 — 0.8 3.5 Stock-based compensation
expense — — — 26.1 26.1 Non-cash purchase accounting
1.2 —
2.0 —
3.2 Adjusted EBITDA
$
70.2 $ 35.6 $
21.8 $ (23.5 )
$ 104.1
REV GROUP, INC. ADJUSTED NET INCOME
(Unaudited; dollars in millions) Three Months
Ended Nine Months Ended July 31, 2018 July 29,
2017 July 31, 2018 July 29, 2017 Net income $
18.3 $ 15.2 $ 35.1 $ 8.7 Amortization of Intangible Assets 4.6 5.1
13.7 10.4 Restructuring Costs 0.9 2.3 6.9 3.5 Transaction Expenses
- 0.5 2.1 2.7 Stock-based Compensation Expense 1.4 0.3 5.1 26.1
Non-cash Purchase Accounting Expense 0.5 1.9 1.2 3.2 Loss on Early
Extinguishment of Debt - - - 11.9 Sponsor Expenses 0.2 0.1 0.5 0.4
Legal Matters 1.1 - 2.8 - Initial Public Company Costs 1.0 - 1.5 -
Deferred Purchase Price Payment 1.9 - 4.1 - Impact of Tax Rate
Change (2.1 ) - (12.5 ) - Income Tax Effect of Adjustments
(3.1 ) (3.5 ) (9.5 ) (20.2 ) Adjusted net
income $ 24.7 $ 21.9 $ 51.0 $ 46.7
REV GROUP, INC. ADJUSTED EBITDA
OUTLOOK RECONCILIATION (Dollars in millions)
Fiscal Year 2018 Low High Net Income $ 57.9 $
69.0 Depreciation and Amortization 46.0 45.0 Interest Expense, net
24.0 23.0 Income Tax Expense 3.0 6.0 EBITDA
130.9 143.0 Restructuring Costs 7.0 7.0 Transaction Expenses
2.1 2.1 Stock-based Compensation Expense 6.0 5.0 Non-cash Purchase
Accounting Expense 1.2 1.2 Legal Matters 4.5 3.5 Initial Public
Company Costs 1.7 1.7 Sponsor Expenses 0.6 0.5 Deferred Purchase
Price Payout 6.0 6.0 Adjusted EBITDA $ 160.0 $ 170.0
REV GROUP, INC. ADJUSTED NET INCOME
OUTLOOK RECONCILIATION (Dollars in millions)
Fiscal Year 2018 Low High Net Income $ 57.9 $
69.0 Amortization of Intangible Assets 17.5 15.5 Restructuring
Costs 7.0 7.0 Transaction Expenses 2.1 2.1 Stock-based Compensation
Expense 6.0 5.0 Non-cash Purchase Accounting Expense 1.2 1.2 Legal
Matters 4.5 3.5 Initial Public Company Costs 1.7 1.7 Sponsor
Expenses 0.6 0.5 Deferred Purchase Price Payout 6.0 6.0 One-time
Benefit of U.S. Tax Reform (12.0 ) (12.0 ) Income Tax Effect of
Adjustments (11.8 ) (10.7 ) Adjusted Net Income $
80.7 $ 88.8
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version on businesswire.com: https://www.businesswire.com/news/home/20180905005898/en/
REV Group, Inc.Sandy Bugbee, 1-888-738-4037 (1-888-REVG-037)VP,
Treasurer and Investor Relationsinvestors@revgroup.com
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