Jun. 6th, 2017
- Net sales of $545.3 million in the second quarter 2017 grew 14%
over the prior year second quarter
- Net income of $6.8 million in the second quarter 2017 declined 15%
over the prior year second quarter due to the impact of one-time
expenses (primarily costs associated with early extinguishment of debt)
- Adjusted Net Income2 in second quarter
2017 was $19.0 million, which was 33% higher than second quarter 2016
- Adjusted EBITDA2 in the second quarter
2017 was $37.6 million, which was 16% higher than the prior year
quarter
- Year-to-date fiscal 2017 Adjusted EBITDA of $58.7 million
represents a 24% increase over the prior year first half results
- Completed two accretive, synergistic tuck-in acquisitions that
broaden REV’s product portfolio and strengthen its position in each of
its three segments
- Accelerated and enlarged organic investment in capital expenditure
projects (e.g. investments in IT and our parts and service business,
among others) which will drive growth in future fiscal years
- Updated outlook for full-year fiscal 2017 reflects increasing
consolidated net sales expectation in the range of $2.3 to $2.4
billion, net income in the range of $36 to $39 million and increasing
Adjusted EBITDA2 expectation in the range of
$157 to $162 million
MILWAUKEE--(BUSINESS WIRE)--
REV Group, Inc. (NYSE:REVG) today reported results for the three months
ended April 29, 2017 (“second quarter 2017”). Consolidated net sales in
the second quarter of 2017 were $545.3 million, growing 13.6% over the
three months ended April 30, 2016 (“second quarter 2016”). The increase
was driven predominately by strong growth in the Fire & Emergency and
Recreation segments. Year-to-date consolidated net sales were $988.3
million for the six months ended April 29, 2017, which was an increase
of 15.9% over the first six months of fiscal 2016.
The Company’s second quarter 2017 net income was $6.8 million, or $0.10
per diluted share. Second quarter 2017 net income was impacted by a
number of one-time items that included an $11.9 million charge from the
early extinguishment of debt following the Company’s initial public
offering (“IPO”) and repayment of its Senior Secured Notes, as well as
its April 2017 debt refinancing. Adjusted Net Income2 for the
second quarter 2017 of $19.0 million, or $0.29 per diluted share, grew
33.0% compared to $14.3 million, or $0.28 per diluted share, in the
second quarter fiscal 2016 (second quarter 2016 contained fewer
outstanding shares). Net income for the first six months of fiscal 2017
was a loss of $6.5 million, or a loss of $0.11 per diluted share due to
several one-time expense items, the largest of which related to the IPO
and debt refinancings referenced above. Year-to-date Adjusted Net Income2
was $24.8 million for the first half of fiscal 2017 compared to $18.2
million for the first six months of fiscal 2016, which represents an
increase of 36.4% due to higher earnings from operations as well as
lower interest expense.
Adjusted EBITDA2 in the second quarter 2017 was
$37.6 million, representing growth of 16.1% over Adjusted EBITDA of
$32.3 million in the second quarter 2016. The increase in Adjusted
EBITDA was driven by a number of factors including higher vehicle sales,
strong aftermarket parts sales, impact of acquisitions, ongoing
procurement and production cost optimization initiatives and strategic
pricing actions for specific vehicle categories. Adjusted EBITDA for the
six months ended April 29, 2017 was $58.7 million, which was a 23.8%
increase over the same period in fiscal 2016.
REV Group, Inc. President and CEO, Tim Sullivan said, “We are pleased to
report continued growth in both our sales and profitability. Our second
quarter 2017 results highlight our progress to leverage the scale of our
now 29 market-leading specialty vehicle brands with the goal of
generating consolidated Adjusted EBITDA margins in excess of 10%.
Additionally, REV Group capitalized on our unique market position during
the quarter by acquiring two highly regarded vehicle businesses in both
Midwest Automotive Designs and Ferrara Fire Apparatus for our Recreation
and Fire & Emergency segments, respectively. As a result, REV Group
strengthened its position to grow sales and drive higher profitability
in 2017 and beyond. Both businesses are excellent fits with REV Group
and broaden our product portfolios and market reach while also providing
significant cost and revenue synergy opportunities.” In addition,
Sullivan stated, “Through the first six months of our fiscal year, we
are on track with our plan for earnings in fiscal 2017 and we are
updating our guidance for the full year based on the impact of our
recent acquisitions.”
REV Group Segment Highlights
Fire & Emergency – Fire & Emergency (“F&E”) net sales for the
second quarter 2017 were $219.0 million representing growth of 23.4%
over the prior year period. Sales growth was driven by the acquisition
of Kovatch Mobile Equipment (“KME”) in April of 2016. Excluding the
results of KME and Ferrara, F&E segment net sales remained flat compared
to the prior year period. The timing of a large contract award and
related vehicle shipments in our Ambulance division negatively impacted
second quarter organic F&E net sales slightly. F&E net sales for the
first six months of fiscal 2017 were $404.4 million, which was an
increase of 32.2% over $305.8 million for the same period in fiscal
2016. F&E backlog at the end of the second quarter 2017 was up 15.5% to
$636.2 million compared to $550.8 million at the end of fiscal year 2016.
F&E segment Adjusted EBITDA3 was $24.4 million in the
second quarter 2017 which represented growth of 13.7% compared to $21.5
million in the second quarter 2016. F&E Adjusted EBITDA was driven
during the second quarter 2017 by higher vehicle sales, procurement and
productivity initiatives, pricing initiatives and growth in aftermarket
parts and services revenues. Second quarter F&E Adjusted EBITDA margin
was 11.1% of net sales compared to 12.1% in the second quarter 2016 due
to the current quarter impact of the KME acquisition which was
performing at margins significantly below the segment average.
Year-to-date 2017 Adjusted EBITDA in F&E increased 11.8% to $41.1
million versus $36.8 million for the first six months of fiscal 2016. We
are pleased to report that we are on schedule with the KME integration
and expect increased KME profitability as the year progresses to levels
more in line with our E-ONE brand over time.
Commercial – Commercial segment net sales for the second quarter
2017 were $159.5 million, which were down 9.5% compared to the prior
year period. This decrease was driven by lower sales in specific product
categories as we continue to be more selective about which sales
opportunities we pursue. End markets in all our Commercial product
categories remain strong and growing versus the prior year. Net sales in
the Commercial segment year-to-date fiscal 2017 were $289.7 million
versus $316.8 million in the first half of fiscal 2016, which was a
decrease of 8.5%. Commercial segment backlog grew 6.6% to $240.9 million
at April 29, 2017 from $226.1 million at the end of fiscal year 2016.
Commercial segment Adjusted EBITDA was $14.7 million in the second
quarter 2017 compared to $15.0 million in the second quarter 2016.
Adjusted EBITDA margin expanded to 9.2% of net sales in the second
quarter 2017 compared to 8.5% in the second quarter 2016. Adjusted
EBITDA growth in the second quarter 2017 was strong for the school bus,
transit bus and terminal truck product categories. Overall segment
profitability margin improvement during the quarter was driven by sales
mix, less discounting, lower fixed costs and procurement and product
initiatives, partially off-set by reorganization activities.
Year-to-date 2017 Adjusted EBITDA in the Commercial segment increased
13.2% to $22.8 million from $20.2 million in the same period of fiscal
2016 despite the lower revenues described above due to an enhanced mix
of vehicle sales, lower discounting, and benefits from lower fixed cost
and procurement initiatives in the current year period.
Recreation – The Recreation segment grew net sales to
$166.3 million in the second quarter 2017, representing growth of 31.6%
over the prior year period. Segment sales growth was partially driven by
the acquisition of Renegade RV (“Renegade”) which was completed on
December 30, 2016. Net sales growth excluding the acquisitions of
Renegade and Midwest was also strong at 13.5% as the RV end markets
continue to grow and the segment is benefiting from expansion of its
Class C line of products, which were reintroduced in the middle of 2016.
Recreation net sales for the six months ended April 29, 2017 were $293.0
million, which was an increase of 27.2% over net sales of $230.4 million
for the first six months of fiscal 2016. Recreation segment backlog at
the end of the second quarter 2017 was $112.7 million, which was up
40.1% from $80.4 million at the end of fiscal year 2016.
Recreation segment Adjusted EBITDA grew in the second quarter 2017 to
$7.3 million compared to $2.8 million in the second quarter 2016.
Adjusted EBITDA margin in the second quarter doubled to 4.4% of net
sales compared to 2.2% in the second quarter 2016. The strong 220 basis
point expansion in profitability is attributable to reduced discounting,
a higher mix of Class A diesel and Class C units and benefits from our
ongoing procurement, cost of quality and other operating initiatives.
Year-to-date fiscal 2017 Adjusted EBITDA in Recreation was $10.1
million, which was an almost nine-fold increase versus the first six
months of fiscal 2016.
Working capital, liquidity and capital allocation – Net working
capital4 for the Company at April 29, 2017 was $333.2 million
compared to $187.3 million at the end of fiscal 2016. This increase
versus prior fiscal year-end represents a normal seasonal increase in
net working capital consistent with prior years but also includes the
impact of the acquisitions of Renegade, Midwest and Ferrara. Cash and
equivalents totaled $13.9 million at the end of the second quarter 2017.
Net debt at the end of the second quarter 2017 was $267.6 million (net
of deferred financing costs) and the Company had $136.6 million
available under its new ABL revolving credit facility as of April 29,
2017. Consistent with prior years the Company expects net working
capital to seasonally decline over the next two quarters.
Capital expenditures in the second quarter and year-to-date through
April 29, 2017 were $18.7 million and $37.2 million, respectively.
Year-to-date capital expenditures have been accelerated ahead of the
2017 planned quarterly timing and are at spending levels significantly
in excess of typical maintenance requirements for the Company.
“We continue to identify additional opportunities for organic growth
investments and have accelerated other capital projects that will
provide the basis for incremental sales and earnings growth in future
years,” commented Tim Sullivan. “We are aggressively implementing our
capital allocation strategies to enhance organic growth in addition to
investing capital in our recently acquired businesses. Examples include
investments in our parts and service businesses, investments in IT
systems to enhance productivity, improve data availability and reduce
back office expenses, and other investments in attractive cost reduction
and operational improvement projects. With these investments we are
sowing the seeds for our sales and earnings growth in 2018 and beyond.”
The Company now expects full fiscal year 2017 capital expenditures to be
in the range of $45 to $50 million.
Quarterly Dividend – Our board of directors declared a quarterly
dividend for our second quarter of fiscal 2017, payable on August 31,
2017, to holders of record on July 31, 2017, 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.
Fiscal 2017 Full Year Guidance – “We are increasing our REV Group
full-year fiscal 2017 outlook due to the impact of acquisitions
completed in the second quarter. Our prior financial outlook is
otherwise unchanged as we complete the first half of our fiscal year and
enter our seasonally stronger second half. We now expect full-year
fiscal 2017 revenues of $2.3 to $2.4 billion, net income of $36 to $39
million and Adjusted EBITDA of $157 to $162 million,” said Sullivan.
“This outlook does not include any impact from potential additional
future acquisitions or the pro forma impact of any acquisitions prior to
their purchase by REV Group.”
Conference Call
REV Group, Inc. will host a conference call to discuss second quarter
2017 results and full-year fiscal 2017 outlook on June 7th 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.
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 and Adjusted Net Income represents net income as
adjusted for certain after-tax, non-recurring, one-time and other
adjustments which the Company believes are not indicative of its
underlying operating performance as well as for the add-back of certain
non-cash intangible 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 most recent
prospectus dated January 30, 2017 and other risk factors described from
time to time in subsequent quarterly or annual reports on Forms 10-Q or
10-K, which 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.
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 29 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.
| 1 The Company’s fiscal year ends on the last Saturday in
October each year. The last day of fiscal 2016 was October 29, 2016.
The last day of fiscal 2017 will be October 28, 2017.
|
| 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. These figures do not include the
impact of acquisitions before their acquisition dates.
|
| 3 Segment Adjusted EBITDA is a non-GAAP measure that is
explained and reconciled to its nearest GAAP metric later in this
release.
|
| 4 Net working capital is defined as current assets
(excluding cash) less current liabilities (excluding current portion
of long-term debt).
|
Investors-REVG
|
|
REV GROUP, INC.
CONDENSED UNAUDITED CONSOLIDATED
BALANCE SHEETS
(Dollars in thousands) |
|
|
|
| |
|
| |
| | | | April 29,
2017 | | | October 29,
2016 |
| | | | | |
|
ASSETS
| | | |
(unaudited)
| | | |
|
Current assets:
| | | | | | | |
|
Cash and cash equivalents
| | | |
$
|
13,950
| | |
$
|
10,821
|
|
Accounts receivable, net
| | | | |
223,346
| | | |
181,239
|
|
Inventories, net
| | | | |
417,630
| | | |
325,633
|
|
Other current assets
| | | |
|
18,336
| | |
|
12,037
|
|
Total current assets
| | | | |
673,262
| | | |
529,730
|
| | |
| | | | |
|
Property, plant and equipment, net
| | | | |
198,199
| | | |
146,422
|
|
Goodwill
| | | | |
170,386
| | | |
84,507
|
|
Intangibles assets, net
| | | | |
125,130
| | | |
124,040
|
|
Other long-term assets
| | | |
|
8,454
| | |
|
4,320
|
|
Total assets
| | | |
$
|
1,175,431
| | |
$
|
889,019
|
| | | | | | |
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
| | | | | | | |
|
Current liabilities:
| | | | | | | |
|
Current portion of long-term debt
| | | |
$
|
750
| | |
$
|
-
|
|
Accounts payable
| | | | |
140,603
| | | |
129,481
|
|
Customer advances
| | | | |
106,747
| | | |
87,627
|
|
Accrued warranty
| | | | |
21,881
| | | |
22,693
|
|
Other current liabilities
| | | |
|
56,884
| | |
|
91,803
|
|
Total current liabilities
| | | | |
326,865
| | | |
331,604
|
| | | | | | |
|
|
Notes payable and bank debt, less current maturities
| | | | |
280,756
| | | |
256,040
|
|
Deferred income taxes
| | | | |
8,229
| | | |
17,449
|
|
Other long-term liabilities
| | | |
|
24,170
| | |
|
23,710
|
|
Total liabilities
| | | | |
640,020
| | | |
628,803
|
| | | | | | |
|
|
Contingently redeemable common stock
| | | | |
—
| | | |
22,293
|
|
Commitments and contingencies
| | | | | | | |
|
Shareholders’ equity
| | | |
|
535,411
| | |
|
237,923
|
|
Total liabilities and shareholders’ equity
| | | |
$
|
1,175,431
| | |
$
|
889,019
|
| | | | | | |
|
|
|
|
| |
|
| |
|
| |
|
| |
REV GROUP, INC.
CONDENSED UNAUDITED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited; dollars in
thousands, except shares and per share amounts) |
| | | | | | | | | | | | |
|
| | | | Three Months Ended | | | Six Months Ended |
| | | | April 29,
2017 | | | April 30,
2016 | | | April 29,
2017 | | | April 30,
2016 |
| | | | | | | | | | | | |
|
|
Net sales
| | | |
$
|
545,316
| | |
$
|
480,229
| | | |
$
|
988,253
| | | |
$
|
853,009
|
| | | | | | | | | | | | |
|
|
Cost of sales
| | | |
|
472,471
| | |
|
421,509
|
| | |
|
867,888
|
| | |
|
759,350
|
| | | | | | | | | | | | |
|
|
Gross profit
| | | | |
72,845
| | | |
58,720
| | | | |
120,365
| | | | |
93,659
|
| | | | | | | | | | | | |
|
|
Operating expenses:
| | | | | | | | | | | | | |
|
Selling, general and administrative
| | | | |
42,604
| | | |
35,314
| | | | |
99,102
| | | | |
62,420
|
|
Research and development costs
| | | | |
963
| | | |
1,294
| | | | |
2,161
| | | | |
2,433
|
|
Restructuring
| | | | |
335
| | | |
(215
|
)
| | | |
1,199
| | | | |
2,750
|
|
Amortization of intangible assets
| | | |
|
2,695
| | |
|
2,200
|
| | |
|
5,309
|
| | |
|
4,443
|
| | | | | | | | | | | | |
|
|
Total operating expenses
| | | |
|
46,597
| | |
|
38,593
|
| | |
|
107,771
|
| | |
|
72,046
|
| | | | | | | | | | | | |
|
|
Operating income
| | | | |
26,248
| | | |
20,127
| | | | |
12,594
| | | | |
21,613
|
| | | | | | | | | | | | |
|
|
Interest expense
| | | | |
3,416
| | | |
6,776
| | | | |
10,893
| | | | |
13,463
|
| | | | | | | | | | | | |
|
|
Loss on early extinguishment of debt
| | | |
|
11,920
| | |
|
-
|
| | |
|
11,920
|
| | |
|
-
|
|
Income (loss) before provision (benefit) for income taxes
| | | | |
10,912
| | | |
13,351
| | | | |
(10,219
|
)
| | | |
8,150
|
| | | | | | | | | | | | |
|
|
Provision (benefit) for income taxes
| | | |
|
4,099
| | |
|
5,309
|
| | |
|
(3,730
|
)
| | |
|
3,118
|
| | | | | | | | | | | | |
|
|
Net income (loss)
| | | |
$
|
6,813
| | |
$
|
8,042
|
| | |
$
|
(6,489
|
)
| | |
$
|
5,032
|
| | | | | | | | | | | | |
|
| Earnings (loss) per common share: | | | | | | | | | | | | | |
|
Basic
| | | |
$
|
0.11
| | |
$
|
0.16
| | | |
$
|
(0.11
|
)
| | |
$
|
0.10
|
|
Diluted
| | | |
$
|
0.10
| | |
$
|
0.16
| | | |
$
|
(0.11
|
)
| | |
$
|
0.10
|
| | | | | | | | | | | | |
|
| Dividends declared per common share | | | |
$
|
0.05
| | |
$
|
-
| | | |
$
|
0.05
| | | |
$
|
-
|
| | | | | | | | | | | | |
|
| Adjusted earnings per common share: | | | | | | | | | | | | | |
|
Basic
| | | |
$
|
0.30
| | |
$
|
0.28
| | | |
$
|
0.43
| | | |
$
|
0.35
|
|
Diluted
| | | |
$
|
0.29
| | |
$
|
0.28
| | | |
$
|
0.43
| | | |
$
|
0.35
|
| | | | | | | | | | | | |
|
| Weighted Average Shares Outstanding: | | | | | | | | | | | | | |
|
Basic
| | | | |
63,722,795
| | | |
51,345,112
| | | | |
57,541,476
| | | | |
51,925,657
|
|
Diluted
| | | | |
65,501,330
| | | |
51,575,366
| | | | |
57,541,476
| | | | |
52,123,658
|
| | | | | | | | | | | | | | | | | | |
|
|
|
|
| |
|
| |
REV GROUP, INC.
CONDENSED UNAUDITED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited; Dollars in
thousands) |
| | | | | | |
|
| | | | Six Months Ended |
| | | | April 29,
2017 |
|
| April 30,
2016 |
| | | | | | |
|
|
Cash flows from operating activities:
| | | | | | | |
|
Net income (loss)
| | | |
$
|
(6,489
|
)
| | |
$
|
5,032
| |
|
Adjustments to reconcile net income (loss) to net cash used in
operating activities:
| | | | | | | |
|
Depreciation and amortization
| | | | |
15,274
| | | | |
10,259
| |
|
Amortization of debt issuance costs
| | | | |
918
| | | | |
1,089
| |
|
Amortization of senior note discount
| | | | |
50
| | | | |
102
| |
|
Stock-based compensation expense
| | | | |
25,817
| | | | |
11,246
| |
|
Deferred income taxes
| | | | |
(8,563
|
)
| | | |
(3,870
|
)
|
|
Loss on early extinguishment of debt
| | | | |
11,920
| | | | |
-
| |
|
Gain on disposal of property, plant and equipment
| | | | |
(352
|
)
| | | |
(196
|
)
|
|
Changes in operating assets and liabilities net of effects of
business acquisitions:
| | | |
|
(97,466
|
)
| | |
|
(34,960
|
)
|
|
Net cash used in operating activities
| | | | |
(58,891
|
)
| | | |
(11,298
|
)
|
| | | | | | |
|
|
Cash flows from investing activities net of effects of business
acquisitions:
| | | | | | | |
|
Purchase of property, plant and equipment
| | | | |
(37,165
|
)
| | | |
(23,001
|
)
|
|
Payments for rental fleet vehicles
| | | | |
(7,799
|
)
| | | |
-
| |
|
Proceeds from sale of property, plant and equipment
| | | | |
1,821
| | | | |
357
| |
|
Acquisition of businesses, net of cash acquired
| | | | |
(153,534
|
)
| | | |
(25,293
|
)
|
|
Acquisition of Ancira assets
| | | |
|
-
|
| | |
|
(6,435
|
)
|
|
Net cash used in investing activities
| | | | |
(196,677
|
)
| | | |
(54,372
|
)
|
| | | | | | |
|
|
Cash flows from financing activities:
| | | | | | | |
|
Net proceeds from borrowings under revolving credit facility
| | | | |
127,749
| | | | |
89,213
| |
|
Proceeds from Term Loan
| | | | |
75,000
| | | | |
-
| |
|
Net proceeds from initial public offering
| | | | |
253,593
| | | | |
-
| |
|
Repayment of debt assumed from acquisition
| | | | |
-
| | | | |
(3,698
|
)
|
|
Payment of debt issuance costs
| | | | |
(6,744
|
)
| | | |
(704
|
)
|
|
Repayment of long-term debt and capital leases
| | | | |
(180,000
|
)
| | | |
(119
|
)
|
|
Senior note prepayment premium
| | | | |
(7,650
|
)
| | | |
-
| |
|
Redemption of common stock and stock options
| | | |
|
(3,251
|
)
| | |
|
(20,885
|
)
|
|
Net cash provided by financing activities
| | | |
|
258,697
|
| | |
|
63,807
|
|
|
Net increase (decrease) in cash and cash equivalents
| | | | |
3,129
| | | | |
(1,863
|
)
|
|
Cash and cash equivalents, beginning of period
| | | |
|
10,821
|
| | |
|
4,968
|
|
|
Cash and cash equivalents, end of period
| | | |
$
|
13,950
|
| | |
$
|
3,105
|
|
| | | | | | |
|
|
|
REV GROUP, INC.
ADJUSTED EBITDA BY SEGMENT
(Unaudited;
in thousands) |
|
|
|
| |
|
| |
|
| |
|
| |
|
| |
| | | | THREE MONTHS ENDED APRIL 29, 2017 |
| | | | Fire & Emergency | | | Commercial | | | Recreation | | | Corporate & Other | | | Total |
| | | | | | | | | | | | | | | |
|
|
Net Income (loss)
| | | |
$
|
19,844
| | |
$
|
12,089
| | |
$
|
3,904
| | |
$
|
(29,024
|
)
| | |
$
|
6,813
| |
| | | | | | | | | | | | | | | |
|
|
Depreciation & amortization
| | | | |
2,819
| | | |
1,748
| | | |
2,599
| | | |
687
| | | | |
7,853
| |
|
Interest expense
| | | | |
954
| | | |
491
| | | |
53
| | | |
1,918
| | | | |
3,416
| |
|
Provision for income taxes
| | | | |
-
| | | |
-
| | | |
-
| | | |
4,099
| | | | |
4,099
| |
|
Loss on early extinguishment of debt
| | | |
| - | | |
| - | | |
| - | | |
| 11,920 |
| | |
| 11,920 |
|
|
EBITDA
| | | | |
23,617
| | | |
14,328
| | | |
6,556
| | | |
(10,400
|
)
| | | |
34,101
| |
|
Transaction expenses
| | | | |
772
| | | |
-
| | | |
-
| | | |
1,089
| | | | |
1,861
| |
|
Sponsor expenses
| | | | |
-
| | | |
-
| | | |
-
| | | |
207
| | | | |
207
| |
|
Restructuring costs
| | | | |
-
| | | |
335
| | | |
-
| | | |
-
| | | | |
335
| |
|
Stock-based compensation expense
| | | | |
-
| | | |
-
| | | |
-
| | | |
311
| | | | |
311
| |
|
Non-cash purchase accounting
| | | |
| 10 | | |
| - | | |
| 736 | | |
| - |
| | |
| 746 |
|
|
Adjusted EBITDA
| | | | $ | 24,399 | | | $ | 14,663 | | | $ | 7,292 | | | $ | (8,793 | ) | | | $ | 37,561 |
|
| | | | | | | | | | | | | | | |
|
| | | | THREE MONTHS ENDED APRIL 30, 2016 |
| | | | Fire & Emergency | | | Commercial | | | Recreation | | | Corporate & Other | | | Total |
| | | | | | | | | | | | | | | |
|
|
Net Income (loss)
| | | |
$
|
18,586
| | |
$
|
12,467
| | |
$
|
1,873
| | |
$
|
(24,884
|
)
| | |
$
|
8,042
| |
|
Depreciation & amortization
| | | | |
1,980
| | | |
1,956
| | | |
931
| | | |
520
| | | | |
5,387
| |
|
Interest expense
| | | | |
885
| | | |
576
| | | |
6
| | | |
5,309
| | | | |
6,776
| |
|
Provision for income taxes
| | | |
|
-
| | |
|
-
| | |
|
-
| | |
|
5,309
|
| | |
|
5,309
|
|
|
EBITDA
| | | | |
21,451
| | | |
14,999
| | | |
2,810
| | | |
(13,746
|
)
| | | |
25,514
| |
|
Transaction expenses
| | | | |
-
| | | |
-
| | | |
-
| | | |
1,385
| | | | |
1,385
| |
|
Sponsor expenses
| | | | |
-
| | | |
-
| | | |
-
| | | |
100
| | | | |
100
| |
|
Restructuring costs
| | | | |
-
| | | |
-
| | | |
-
| | | |
(215
|
)
| | | |
(215
|
)
|
|
Stock-based compensation expense
| | | | |
-
| | | |
-
| | | |
-
| | | |
5,563
| | | | |
5,563
| |
|
Non-cash purchase accounting
| | | |
| - | | |
| - | | |
| - | | |
| - |
| | |
| - |
|
|
Adjusted EBITDA
| | | | $ | 21,451 | | | $ | 14,999 | | | $ | 2,810 | | | $ | (6,913 | ) | | | $ | 32,347 |
|
| | | | | | | | | | | | | | | |
|
|
|
REV GROUP, INC.
ADJUSTED EBITDA BY SEGMENT
(Unaudited;
in thousands) |
|
|
|
| |
|
| |
|
| |
|
| |
|
| |
| | | | SIX MONTHS ENDED APRIL 29, 2017 |
| | | | Fire & Emergency | | | Commercial | | | Recreation | | | Corporate & Other | | | Total |
| | | | | | | | | | | | | | | |
|
|
Net Income (loss)
| | | |
$
|
32,542
| | |
$
|
16,652
| | |
$
|
4,044
| | | |
$
|
(59,727
|
)
| | |
$
|
(6,489
|
)
|
|
Depreciation & Amortization
| | | | |
5,628
| | | |
3,678
| | | |
4,756
| | | | |
1,212
| | | | |
15,274
| |
|
Interest Expense
| | | | |
2,126
| | | |
1,308
| | | |
94
| | | | |
7,365
| | | | |
10,893
| |
|
Provision (benefit) for income taxes
| | | | |
4
| | | |
-
| | | |
-
| | | | |
(3,734
|
)
| | | |
(3,730
|
)
|
|
Loss on early extinguishment of debt
| | | |
| - | | |
| - | | |
| - |
| | |
| 11,920 |
| | |
| 11,920 |
|
|
EBITDA
| | | | |
40,300
| | | |
21,638
| | | |
8,894
| | | | |
(42,964
|
)
| | | |
27,868
| |
|
Transaction expenses
| | | | |
772
| | | |
-
| | | |
-
| | | | |
1,467
| | | | |
2,239
| |
|
Sponsor expenses
| | | | |
-
| | | |
-
| | | |
-
| | | | |
338
| | | | |
338
| |
|
Restructuring costs
| | | | |
-
| | | |
1,199
| | | |
-
| | | | |
-
| | | | |
1,199
| |
|
Stock-based compensation expense
| | | | |
-
| | | |
-
| | | |
-
| | | | |
25,817
| | | | |
25,817
| |
|
Non-cash purchase accounting
| | | |
| 40 | | |
| - | | |
| 1,171 |
| | |
| - |
| | |
| 1,211 |
|
|
Adjusted EBITDA
| | | | $ | 41,112 | | | $ | 22,837 | | | $ | 10,065 |
| | | $ | (15,342 | ) | | | $ | 58,672 |
|
| | | | | | | | | | | | | | | |
|
| | | | SIX MONTHS ENDED APRIL 30, 2016 |
| | | | Fire & Emergency | | | Commercial | | | Recreation | | | Corporate & Other | | | Total |
| | | | | | | | | | | | | | | |
|
|
Net Income (loss)
| | | |
$
|
30,694
| | |
$
|
15,056
| | |
$
|
(778
|
)
| | |
$
|
(39,940
|
)
| | |
$
|
5,032
| |
|
Depreciation & Amortization
| | | | |
3,879
| | | |
4,080
| | | |
1,679
| | | | |
621
| | | | |
10,259
| |
|
Interest Expense
| | | | |
1,903
| | | |
1,041
| | | |
16
| | | | |
10,503
| | | | |
13,463
| |
|
Provision (benefit) for income taxes
| | | |
| - | | |
| - | | |
| - |
| | |
| 3,118 |
| | |
| 3,118 |
|
|
EBITDA
| | | | |
36,476
| | | |
20,177
| | | |
917
| | | | |
(25,698
|
)
| | | |
31,872
| |
|
Transaction expenses
| | | | |
-
| | | |
-
| | | |
-
| | | | |
1,385
| | | | |
1,385
| |
|
Sponsor expenses
| | | | |
-
| | | |
-
| | | |
-
| | | | |
125
| | | | |
125
| |
|
Restructuring costs
| | | | |
307
| | | |
-
| | | |
95
| | | | |
2,348
| | | | |
2,750
| |
|
Stock-based compensation expense
| | | | |
-
| | | |
-
| | | |
-
| | | | |
11,246
| | | | |
11,246
| |
|
Non-cash purchase accounting
| | | |
| - | | |
| - | | |
| - |
| | |
| - |
| | |
| - |
|
|
Adjusted EBITDA
| | | | $ | 36,783 | | | $ | 20,177 | | | $ | 1,012 |
| | | $ | (10,594 | ) | | | $ | 47,378 |
|
| | | | | | | | | | | | | | | |
|
|
|
|
| |
|
| |
|
| |
|
| |
REV GROUP, INC.
ADJUSTED NET INCOME
(Unaudited;
in thousands) |
| | | | | | | | | | | | |
|
| | | | Three Months Ended | | | Six Months Ended |
| | | | April 29,
2017 | | | April 30,
2016 | | | April 29,
2017 | | | April 30,
2016 |
|
Net income (loss)
| | | |
$
|
6,813
| | | |
$
|
8,042
| | | |
$
|
(6,489
|
)
| | |
$
|
5,032
| |
|
Amortization of Intangible Assets
| | | | |
2,695
| | | | |
2,200
| | | | |
5,309
| | | | |
4,443
| |
|
Transaction Expenses
| | | | |
1,861
| | | | |
1,385
| | | | |
2,239
| | | | |
1,385
| |
|
Sponsor Expenses
| | | | |
207
| | | | |
100
| | | | |
338
| | | | |
125
| |
|
Restructuring Costs
| | | | |
335
| | | | |
(215
|
)
| | | |
1,199
| | | | |
2,750
| |
|
Stock-based Compensation Expense
| | | | |
311
| | | | |
5,563
| | | | |
25,817
| | | | |
11,246
| |
|
Non-cash Purchase Accounting Expense
| | | | |
746
| | | | |
-
| | | | |
1,211
| | | | |
-
| |
|
Loss on Early Extinguishment of Debt
| | | | |
11,920
| | | | |
-
| | | | |
11,920
| | | | |
-
| |
|
Income tax effect of adjustments
| | | |
|
(5,919
|
)
| | |
|
(2,791
|
)
| | |
|
(16,715
|
)
| | |
|
(6,777
|
)
|
|
Adjusted Net Income
| | | |
$
|
18,969
|
| | |
$
|
14,284
|
| | |
$
|
24,829
|
| | |
$
|
18,204
|
|
| | | | | | | | | | | | | | | | | | | | |
|
|
|
REV GROUP, INC.
FORECASTED ADJUSTED EBITDA
RECONCILIATION
(In thousands) |
|
|
|
|
|
| Fiscal Year 2017 |
| | | | Low |
|
| High |
|
Net income
| | | |
$
|
36,000
| | |
$
|
39,000
|
|
Depreciation and Amortization
| | | | |
34,500
| | | |
34,500
|
|
Interest Expense
| | | | |
20,000
| | | |
20,000
|
|
Income Tax Expense
| | | |
|
22,000
| | |
|
24,000
|
|
EBITDA
| | | | |
112,500
| | | |
117,500
|
|
Transaction Expenses
| | | | |
2,200
| | | |
2,200
|
|
Sponsor Expenses
| | | | |
500
| | | |
500
|
|
Restructuring Costs
| | | | |
1,200
| | | |
1,200
|
|
Stock-based Compensation Expense
| | | | |
26,500
| | | |
26,500
|
|
Loss on Debt Extinguishment
| | | | |
11,900
| | | |
11,900
|
|
Non-cash Purchase Accounting Expense
| | | |
|
2,200
| | |
|
2,200
|
|
Adjusted EBITDA
| | | |
$
|
157,000
| | |
$
|
162,000
|
| | | | | | |
|
|
|
REV GROUP, INC.
SEGMENT INFORMATION
(Unaudited;
in thousands) |
|
|
|
| |
|
| |
|
| |
|
| |
| | | | Three Months Ended | | | Six Months Ended |
| | | | April 29,
2017 | | | April 30,
2016 | | | April 29,
2017 | | | April 30,
2016 |
| | | | | | | | | |
Net Sales: | | | | | | | | | | | | | |
|
Fire & Emergency
| | | |
$
|
219,002
| | | |
$
|
177,469
| | | |
$
|
404,373
| | | |
$
|
305,825
| |
|
Commercial
| | | | |
159,524
| | | | |
176,363
| | | | |
289,745
| | | | |
316,814
| |
|
Recreation
| | | | |
166,337
| | | | |
126,397
| | | | |
293,043
| | | | |
230,370
| |
|
Corporate & Other
| | | |
|
453
|
| | |
|
-
|
| | |
|
1,092
|
| | |
|
-
|
|
|
Total Company Net Sales
| | | |
$
|
545,316
|
| | |
$
|
480,229
|
| | |
$
|
988,253
|
| | |
$
|
853,009
|
|
| | | | | | | | | | | | |
|
Adjusted EBITDA: | | | | | | | | | | | | | |
|
Fire & Emergency
| | | |
$
|
24,399
| | | |
$
|
21,451
| | | |
$
|
41,112
| | | |
$
|
36,783
| |
|
Commercial
| | | | |
14,663
| | | | |
14,999
| | | | |
22,837
| | | | |
20,177
| |
|
Recreation
| | | | |
7,292
| | | | |
2,810
| | | | |
10,065
| | | | |
1,012
| |
|
Corporate & Other
| | | |
|
(8,793
|
)
| | |
|
(6,913
|
)
| | |
|
(15,342
|
)
| | |
|
(10,594
|
)
|
|
Total Company Adjusted EBITDA
| | | |
$
|
37,561
|
| | |
$
|
32,347
|
| | |
$
|
58,672
|
| | |
$
|
47,378
|
|
| | | | | | | | | | | | |
|
| | | | | | | | | | | | |
|
| | | | April 29,
2017 | | | October 29,
2016 | | | | | | |
Period-End Backlog: | | | | | | | | | | | |
|
Fire & Emergency
| | | |
$
|
636,243
| | | |
$
|
550,769
| | | | | | | |
|
Commercial
| | | | |
240,928
| | | | |
226,067
| | | | | | | |
|
Recreation
| | | |
|
112,654
|
| | |
|
80,420
|
| | | | | | |
|
Total Company Backlog
| | | |
$
|
989,825
|
| | |
$
|
857,256
|
| | | | | | |
| | | | | | | | | | | | | | | | |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170606006707/en/
REV Group, Inc.
Sandy Bugbee, 1-888-738-4037 (1-888-REVG-037)
VP,
Treasurer and Investor Relations
[email protected]
Source: REV Group, Inc.
