Sep. 7th, 2017
REV also Announces Collaboration with Ford, Official Award of the Los
Angeles County Transit Bus Contract, and Acquisition of AutoAbility
- Net sales of $595.6 million in the third quarter 2017 grew 13% over
the prior year third quarter
- Net income of $15.2 million in the third quarter 2017 grew 16% over
the prior year third quarter
- Adjusted Net Income1 in third quarter 2017
was $21.9 million, 36% higher than third quarter 2016
- Adjusted EBITDA1 in the third quarter 2017
was $45.5 million, 36% higher than the prior year quarter
- Year-to-date 2017 Adjusted EBITDA1 of
$104.1 million represents a 29% increase over prior year results
- Announces collaboration with Ford Motor Company dealers to offer
REV’s dealers a complete catalog of genuine Ford chassis parts
- Officially awarded the Los Angeles County transit bus contract
expected to be worth over $400 million in revenue over five years
- Announces the acquisition of AutoAbility, a technology leader and
manufacturer of rear-entry mobility vans
- Reaffirming full-year 2017 outlook for net sales of $2.3 to $2.4
billion, and Adjusted EBITDA1 of $157 to $162
million; net income anticipated in the range of $36 to $39 million
MILWAUKEE--(BUSINESS WIRE)--
REV Group, Inc. (NYSE: REVG) today reported results for the three months
ended July 29, 2017 (“third quarter 2017”). Consolidated net sales in
the third quarter of 2017 were $595.6 million, growing 12.8% over the
three months ended July 30, 2016 (“third quarter 2016”). This increase
was driven by strong growth in the Fire & Emergency and Recreation
segments, offset slightly by the impact of a chassis recall, which
delayed shipments in both the Fire & Emergency and Commercial segments.
The sanctioned repair for these recalled chassis is being implemented
and the impacted REV vehicle conversions will be shipped in REV’s fourth
quarter. Year-to-date consolidated net sales were $1.6 billion for the
nine months ended July 29, 2017, which was an increase of 14.7% over the
first nine months of fiscal 2016.
The Company’s third quarter 2017 net income was $15.2 million, or $0.23
per diluted share. Adjusted Net Income1 for the third quarter
2017 was $21.9 million, or $0.33 per diluted share, which grew 36.3%
compared to $16.0 million, or $0.31 per diluted share, in the third
quarter 2016 (third quarter 2017 diluted earnings per share is
calculated using 14.0 million more shares outstanding than the prior
year quarter). Net income for the first nine months of 2017 was $8.7
million, or $0.14 per diluted share due to several one-time expense
items, the largest of which related to our IPO and subsequent debt
refinancings. Year-to-date Adjusted Net Income1 was $46.7
million for the first nine months of 2017 compared to $34.2 million for
the first nine months of 2016, which represents an increase of 36.4%
resulting from higher earnings from operations as well as lower interest
expense.
Adjusted EBITDA1 in the third quarter 2017 was $45.5 million,
representing growth of 35.9% over Adjusted EBITDA of $33.5 million in
the third quarter 2016. A number of factors including increased vehicle
sales, ongoing procurement and production cost optimization initiatives,
strategic pricing actions, and the impact of acquisitions drove the
higher Adjusted EBITDA in the quarter. For the nine months ended July
29, 2017, consolidated Adjusted EBITDA was $104.1 million, which
reflects a 28.8% increase over the same period in 2016.
REV Group, Inc. President and CEO, Tim Sullivan said, “We are pleased to
report our third straight quarter of strong earnings as a public
company. The quarter was one of significant progress where we both
delivered significant growth in net sales and EBITDA as well as made
anticipated progress on many of our longer-term growth strategies in
parts and service, operational and commercial excellence, new product
introductions, and value creating capital allocation. Both our Fire &
Emergency and Recreation segments performed very well this quarter and
continue to have strong outlooks. Within our Commercial segment, we are
continuing our focus on driving profitability and we are encouraged by
growth in our backlog over last quarter as well as the LA County win,
which will benefit future fiscal years. We expect this segment to return
to growth in the fourth quarter. The supplier-initiated chassis recall
during our third quarter shifted revenues out a bit, however we
nevertheless performed strongly against our consolidated EBITDA
expectations for the quarter due to the strength of our Fire & Emergency
and Recreation segments. Looking ahead to the fourth quarter, parts to
repair the vehicles impacted by the chassis recall are now available and
we are again able to ship the impacted vehicles.” In addition, Sullivan
stated, “Through the first nine months of the year, we are on track with
our expectations for full-year 2017 earnings and therefore we are
reaffirming previous guidance for the full year. In summary, it was a
strong quarter and we continue to make incremental progress towards our
enterprise-wide EBITDA margin goal as well as our organic and inorganic
growth objectives.”
REV Group also reported that effective September 5, 2017, REV
established a collaborative connection with Ford Motor Company dealers
to provide our dealers with a complete catalog of genuine Ford chassis
parts through its REV Parts Division to all of REV’s dealers. This
access to Ford parts cataloging information allows REV dealers to order
genuine Ford chassis parts through REV’s online parts system for a
complete range of REV vehicle brands built on Ford chassis. REV Group,
Inc. President and CEO, Tim Sullivan commented, “Our connection with
Ford Motor Company dealers to provide genuine OEM-certified chassis
parts is a key step towards our broader strategy of achieving our
commitment to offer our dealers and end-user customers industry-leading
OEM parts quality and availability.”
REV Group Segment Highlights
Fire & Emergency – Fire & Emergency (“F&E”) segment net sales
were $262.1 million for the three months ended July 29, 2017, an
increase of $43.9 million, or 20.1%, from $218.1 million for the three
months ended July 30, 2016. Net sales of fire apparatus increased due to
increased unit sales in the segment’s existing fire businesses, sales
from the acquisition of Ferrara in April 2017, and a greater mix of
higher content fire vehicles, compared to the prior year period. Net
sales of ambulances increased compared to the prior year period due to
increased unit volumes and a greater mix of higher content Type I and
Type III vehicles. Excluding the impact of the Ferrara acquisition, F&E
net sales increased 6.1% in the third quarter 2017 versus the third
quarter 2016.
F&E net sales for the first nine months of 2017 were $666.5 million,
which was an increase of 27.2% over $524.0 million for the same period
in 2016. F&E backlog at the end of the third quarter 2017 was up 5.4% to
$580.6 million compared to $550.8 million at the end of fiscal year
2016. Excluding the impact of acquisitions year-to-date, F&E segment net
sales increased 5.8% in the first nine months of 2017 compared to the
same period in 2016.
F&E segment Adjusted EBITDA2 was $29.1 million in the
third quarter 2017 which represented growth of 52.4% compared to $19.1
million in the third quarter 2016. F&E Adjusted EBITDA growth was driven
by increased vehicle sales, procurement and productivity initiatives,
pricing actions, operational improvements at KME, and the impact of the
acquisition of Ferrara. Excluding the impact of Ferrara, third quarter
Adjusted EBITDA increased 42.8% in 2017 versus the third quarter of
2016. Third quarter 2017 F&E Adjusted EBITDA margin was 11.1% of net
sales compared to 8.7% in the third quarter 2016 partially due to the
benefit from the integration initiatives at KME, among other items.
Year-to-date 2017 Adjusted EBITDA in the F&E segment increased 25.7% to
$70.2 million versus $55.9 million for the first nine months of 2016.
Excluding the impact of acquisitions year-to-date, F&E segment Adjusted
EBITDA increased 19.9% in 2017 compared to 2016.
Commercial – Commercial segment net sales for the third quarter
2017 were $154.4 million, which were down 15.6% compared to the prior
year period. This decrease was driven by lower sales in certain of our
bus product categories impacted by the aforementioned chassis recall and
more generally, as we continue to be more selective about which sales
opportunities we pursue. We are also still scaling up our mobility
product lines after a production plant relocation in that product
segment.
Net sales in the Commercial segment for the first nine months of 2017
were $444.2 million versus $499.8 million in the first nine months of
2016, which was a decrease of 11.1%. Commercial backlog grew in the
third quarter 2017 by 5.8% to $254.8 million at July 29, 2017, compared
to the end of the second quarter 2017, and grew 12.7% from the end of
2016. We have seen a significant increase in backlog in our Commercial
segment this quarter as we start to see the benefits of our newly rolled
out Platinum Dealer program, among other initiatives, and this backlog
does not yet include any impact of the Los Angeles County transit bus
contract award described in this release.
Commercial segment Adjusted EBITDA was $12.9 million in the third
quarter 2017 compared to $17.1 million in the third quarter 2016.
Adjusted EBITDA margin was 8.3% of net sales in the third quarter 2017
compared to 9.3% in the third quarter 2016. Adjusted EBITDA and Adjusted
EBITDA margin declined in the third quarter of 2017 primarily due to the
net sales decline described above.
Year-to-date 2017 Adjusted EBITDA in the Commercial segment decreased
4.2% to $35.7 million from $37.3 million in the first nine months of
2016, but Adjusted EBITDA margin as a percent of net sales for the first
nine months of 2017 was 8.0% compared to 7.5% for the first nine months
of 2016.
Subsequent to the end of the third quarter, the Los Angeles County
Metropolitan Transportation Authority officially awarded REV’s
subsidiary, Eldorado National California (“ENC”), the contract to supply
295 40-foot CNG powered transit buses. The contract also includes a
provision for an additional 305 buses, for a total of 600 buses over a
5-year period. Along with related optional vehicle features, spare parts
and training, this full contract is expected to be worth over $400
million in revenue over the contract period. This award was previously
announced but was subject to certain administrative processes, including
an award protest. These processes are now completed resulting in the
award of the final contract and purchase order to ENC for the first 295
buses.
The Commercial segment also announced the acquisition of AutoAbility on
September 6th, 2017. AutoAbility is a best-in-class mobility
van “upfitter” that specializes in the manufacture of rear-access,
wheelchair-accessible vehicles. AutoAbility is headquartered in
Clarkston, MI and is supported by a network of 56 dealers in 74
locations throughout the United States. AutoAbility has annual revenue
of approximately $8 million.
Recreation – The Recreation segment grew net sales to
$177.9 million in the third quarter 2017, representing an increase of
39.9% over the prior year period. Recreation segment sales growth was
partially driven by the acquisition of Renegade RV (“Renegade”) and
Midwest Automotive Designs (“Midwest”) which were completed on December
30, 2016 and April 13, 2017, respectively. Recreation net sales
excluding the acquisitions of Renegade and Midwest increased 9.3% during
the quarter due to increased unit sales volumes and higher average
selling prices. In addition to the growth in unit sales for the
segment’s Class A coaches, the segment is also benefiting from expansion
of its Class C line of products as well as overall growth in its end
markets.
Recreation net sales for the nine months ended July 29, 2017 were $470.9
million, which was an increase of 31.7% over net sales of $357.5 million
for the first nine months of fiscal 2016. Excluding acquired companies,
year-to-date Recreation net sales increased 13.0% compared to the same
period in 2016. Recreation segment backlog at the end of the third
quarter 2017 was $116.2 million, which was up 44.4% from $80.4 million
at the end of fiscal year 2016 and up 3.1% sequentially from $112.7
million at the end of the second quarter 2017.
Recreation segment Adjusted EBITDA grew 99.4% in the third quarter 2017
to $11.7 million compared to $5.8 million in the third quarter 2016.
Adjusted EBITDA margin in the third quarter grew 195 basis points to
6.5% of net sales compared to 4.6% in the third quarter 2016. The strong
expansion in profitability is attributable to reduced discounting and
continued benefit from our ongoing procurement, cost of quality and
other operating initiatives. Excluding the impact of acquisitions,
Recreation Adjusted EBITDA in the third quarter 2017 increased 35.4%
compared to the third quarter 2016.
Year-to-date 2017 Adjusted EBITDA in the Recreation segment was $21.7
million, which was a 216.8% increase versus the first nine months of
2016. Adjusted EBITDA in the Recreation segment, excluding the
acquisitions of Renegade and Midwest increased 118.6% in the first nine
months of 2017 compared to the same period in 2016.
Working capital, liquidity and capital allocation – Net working
capital3 for the Company at July 29, 2017 was $358.1 million
compared to $187.3 million at the end of fiscal 2016. This increase
versus prior fiscal year-end includes the impact of the acquisitions of
Renegade, Midwest and Ferrara and also represents a normal seasonal
increase in net working capital consistent with prior years. Cash and
equivalents totaled $14.1 million at the end of the third quarter 2017.
Net debt at the end of the third quarter 2017 was $286.0 million (net of
deferred financing costs) and the Company had $115.9 million available
under its ABL revolving credit facility as of July 29, 2017. Consistent
with prior years seasonality, the Company expects net working capital to
meaningfully decrease in the fourth quarter. Capital expenditures in the
third quarter and year-to-date through July 29, 2017 were $12.7 million
and $49.9 million, respectively.
Quarterly Dividend – Our board of directors declared a quarterly
dividend for our third quarter of fiscal 2017, payable on November 30,
2017, to holders of record on October 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 reaffirming our REV
Group full-year 2017 outlook as we head into our fourth quarter. We
expect full-year 2017 revenues of $2.3 to $2.4 billion and Adjusted
EBITDA of $157 to $162 million. We are also reaffirming our expectation
for full year 2017 net income to be in the range of $36 to $39 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 its third quarter
2017 results and full-year fiscal 2017 outlook on September 8th 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.
Investors-REVG
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. These figures do not include the impact of
acquisitions before their acquisition dates.
2 Segment Adjusted EBITDA is a non-GAAP measure that is
explained and reconciled to its nearest GAAP metric later in this
release.
3 Net working capital is defined as current assets (excluding
cash) less current liabilities (excluding current portion of long-term
debt).
|
| |
| |
| REV GROUP, INC. |
| CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEETS |
| (Dollars in thousands) |
| | | |
|
| | July 29, | | October 29, |
| | 2017 | | 2016 |
|
ASSETS
| |
(unaudited)
| | |
|
Current assets:
| | | | |
|
Cash and cash equivalents
| |
$
|
14,132
| |
$
|
10,821
|
|
Accounts receivable, net
| | |
243,405
| | |
181,239
|
|
Inventories, net
| | |
457,835
| | |
325,633
|
|
Other current assets
| |
|
14,853
| |
|
12,037
|
|
Total current assets
| | |
730,225
| | |
529,730
|
| | | |
|
|
Property, plant and equipment, net
| | |
207,634
| | |
146,422
|
|
Goodwill
| | |
129,746
| | |
84,507
|
|
Intangibles assets, net
| | |
170,517
| | |
124,040
|
|
Other long-term assets
| |
|
7,960
| |
|
4,320
|
|
Total assets
| |
$
|
1,246,082
| |
$
|
889,019
|
| | | |
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
| | | | |
|
Current liabilities:
| | | | |
|
Current portion of long-term debt
| |
$
|
750
| |
$
|
—
|
|
Accounts payable
| | |
170,199
| | |
129,481
|
|
Customer advances
| | |
104,254
| | |
87,627
|
|
Accrued warranty
| | |
19,012
| | |
22,693
|
|
Other current liabilities
| |
|
64,573
| |
|
91,803
|
|
Total current liabilities
| | |
358,788
| | |
331,604
|
| | | |
|
|
Notes payable and bank debt, less current maturities
| | |
299,367
| | |
256,040
|
|
Deferred income taxes
| | |
17,105
| | |
17,449
|
|
Other long-term liabilities
| |
|
23,073
| |
|
23,710
|
|
Total liabilities
| | |
698,333
| | |
628,803
|
| | | |
|
|
Contingently redeemable common stock
| | |
—
| | |
22,293
|
|
Commitments and contingencies
| | | | |
|
Shareholders’ equity
| |
|
547,749
| |
|
237,923
|
|
Total liabilities and shareholders’ equity
| |
$
|
1,246,082
| |
$
|
889,019
|
| | | | | |
|
|
| |
| |
| |
| |
| REV GROUP, INC. |
| CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF INCOME |
| (Unaudited; dollars in thousands, except shares and per share
amounts) |
| | | | | | | |
|
| | Three Months Ended | | Nine Months Ended |
| | July 29,
2017 | | July 30,
2016 | | July 29,
2017 | | July 30,
2016 |
| | | | | | | |
|
|
Net sales
| |
$
|
595,602
| |
$
|
528,238
| |
$
|
1,583,855
| |
$
|
1,381,247
|
| | | | | | | |
|
|
Cost of sales
| |
|
517,597
| |
|
464,285
| |
|
1,385,485
| |
|
1,223,635
|
| | | | | | | |
|
|
Gross profit
| | |
78,005
| | |
63,953
| | |
198,370
| | |
157,612
|
| | | | | | | |
|
|
Operating expenses:
| | | | | | | | |
|
Selling, general and administrative
| | |
40,576
| | |
35,481
| | |
139,678
| | |
97,901
|
|
Research and development costs
| | |
1,199
| | |
1,330
| | |
3,360
| | |
3,763
|
|
Restructuring
| | |
2,279
| | |
57
| | |
3,479
| | |
2,807
|
|
Amortization of intangible assets
| |
|
5,109
| |
|
2,505
| |
|
10,417
| |
|
6,948
|
| | | | | | | |
|
|
Total operating expenses
| |
|
49,163
| |
|
39,373
| |
|
156,934
| |
|
111,419
|
| | | | | | | |
|
|
Operating income
| | |
28,842
| | |
24,580
| | |
41,436
| | |
46,193
|
| | | | | | | |
|
|
Interest expense, net
| | |
4,560
| | |
7,364
| | |
15,453
| | |
20,828
|
| | | | | | | |
|
|
Loss on early extinguishment of debt
| |
|
-
| |
|
-
| |
|
11,920
| |
|
-
|
|
Income before provision for income taxes
| | |
24,282
| | |
17,216
| | |
14,063
| | |
25,365
|
| | | | | | | |
|
|
Provision for income taxes
| |
|
9,091
| |
|
4,136
| |
|
5,362
| |
|
7,254
|
| | | | | | | |
|
|
Net income
| |
$
|
15,191
| |
$
|
13,080
| |
$
|
8,701
| |
$
|
18,111
|
| | | | | | | |
|
| Earnings per common share: | | | | | | | | |
|
Basic
| |
$
|
0.24
| |
$
|
0.26
| |
$
|
0.15
| |
$
|
0.35
|
|
Diluted
| |
$
|
0.23
| |
$
|
0.25
| |
$
|
0.14
| |
$
|
0.35
|
| | | | | | | |
|
| Dividends declared per common share | |
$
|
0.05
| |
$
|
—
| |
$
|
0.10
| |
$
|
—
|
| | | | | | | |
|
| Adjusted earnings per common share: | | | | | | | | |
|
Basic
| |
$
|
0.34
| |
$
|
0.31
| |
$
|
0.78
| |
$
|
0.66
|
|
Diluted
| |
$
|
0.33
| |
$
|
0.31
| |
$
|
0.76
| |
$
|
0.66
|
| | | | | | | |
|
| Weighted Average Shares Outstanding: | | | | | | | | |
|
Basic
| | |
63,769,388
| | |
51,269,600
| | |
59,617,447
| | |
51,706,320
|
|
Diluted
| | |
65,528,691
| | |
51,501,440
| | |
61,301,236
| | |
52,132,720
|
| | | | | | | | | | | |
|
|
| |
| |
| REV GROUP, INC. |
| CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Unaudited; Dollars in thousands) |
| | | |
|
| | Nine Months Ended |
| | July 29,
2017 | | July 30,
2016 |
| | | |
|
|
Cash flows from operating activities:
| | | | |
|
Net income
| |
$
|
8,701
| | |
$
|
18,111
| |
|
Adjustments to reconcile net income to net cash used in operating
activities:
| | | | |
|
Depreciation and amortization
| | |
26,811
| | | |
17,115
| |
|
Amortization of debt issuance costs
| | |
1,340
| | | |
1,697
| |
|
Amortization of senior note discount
| | |
50
| | | |
150
| |
|
Stock-based compensation expense
| | |
26,131
| | | |
12,298
| |
|
Deferred income taxes
| | |
(5,090
|
)
| | |
(5,979
|
)
|
|
Loss on early extinguishment of debt
| | |
11,920
| | | |
—
| |
|
Gain on disposal of property, plant and equipment
| | |
(594
|
)
| | |
(207
|
)
|
| | | |
|
|
Changes in operating assets and liabilities, net of effects of
business acquisitions:
| |
|
(129,251
|
)
| |
|
(54,394
|
)
|
| | | |
|
|
Net cash used in operating activities
| | |
(59,982
|
)
| | |
(11,209
|
)
|
| | | |
|
|
Cash flows from investing activities net of effects of business
acquisitions:
| | | | |
|
Purchase of property, plant and equipment
| | |
(49,891
|
)
| | |
(19,525
|
)
|
|
Payments for rental fleet vehicles
| | |
(9,679
|
)
| | |
(11,041
|
)
|
|
Proceeds from sale of property, plant and equipment
| | |
3,643
| | | |
1,113
| |
|
Acquisition of businesses, net of cash acquired
| | |
(155,142
|
)
| | |
(31,729
|
)
|
|
Acquisition of Ancira assets
| |
|
—
|
| |
|
(6,435
|
)
|
| | | |
|
|
Net cash used in investing activities
| | |
(211,069
|
)
| | |
(67,617
|
)
|
| | | |
|
|
Cash flows from financing activities:
| | | | |
|
Net proceeds from borrowings under revolving credit facility
| | |
146,257
| | | |
116,919
| |
|
Proceeds from Term Loan
| | |
75,000
| | | |
—
| |
|
Payment of dividends
| | |
(3,191
|
)
| | |
—
| |
|
Net proceeds from initial public offering
| | |
253,593
| | | |
—
| |
|
Repayment of debt assumed from acquisition
| | |
—
| | | |
(3,698
|
)
|
|
Payment of debt issuance costs
| | |
(6,717
|
)
| | |
(704
|
)
|
|
Repayment of long-term debt and capital leases
| | |
(180,000
|
)
| | |
(179
|
)
|
|
Senior note prepayment premium
| | |
(7,650
|
)
| | |
—
| |
|
Redemption of common stock and stock options
| | |
(3,251
|
)
| | |
(21,214
|
)
|
|
Proceeds from exercise of common stock options
| |
|
321
|
| |
|
—
|
|
| | | |
|
|
Net cash provided by financing activities
| |
|
274,362
|
| |
|
91,124
|
|
| | | |
|
|
Net increase in cash and cash equivalents
| | |
3,311
| | | |
12,298
| |
|
Cash and cash equivalents, beginning of period
| |
|
10,821
|
| |
|
4,968
|
|
| | | |
|
|
Cash and cash equivalents, end of period
| |
$
|
14,132
|
| |
$
|
17,266
|
|
| | | |
|
|
| |
| |
| |
| |
| |
| REV GROUP, INC. |
| ADJUSTED EBITDA BY SEGMENT |
| (Unaudited; in thousands) |
| | | | | | | | | |
|
| | THREE MONTHS ENDED JULY 29, 2017 |
| | Fire & Emergency | | Commercial | | Recreation | | Corporate & Other | | Total |
| | | | | | | | | |
|
|
Net Income (loss)
| |
$
|
21,947
| |
$
|
8,865
| |
$
|
7,462
| |
$
|
(23,083
|
)
| |
$
|
15,191
|
| | | | | | | | | |
|
|
Depreciation & amortization
| | |
4,549
| | |
2,363
| | |
3,468
| | |
1,158
| | | |
11,538
|
|
Interest expense, net
| | |
924
| | |
525
| | |
43
| | |
3,068
| | | |
4,560
|
|
Provision for income taxes
| |
|
—
| |
|
—
| |
|
—
| |
|
9,091
|
| |
|
9,091
|
|
EBITDA
| | |
27,420
| | |
11,753
| | |
10,973
| | |
(9,766
|
)
| | |
40,380
|
| | | | | | | | | |
|
|
Transaction expenses
| | |
—
| | |
—
| | |
—
| | |
503
| | | |
503
|
|
Sponsor expenses
| | |
—
| | |
—
| | |
—
| | |
80
| | | |
80
|
|
Restructuring costs
| | |
420
| | |
1,119
| | |
—
| | |
740
| | | |
2,279
|
|
Stock-based compensation expense
| | |
—
| | |
—
| | |
—
| | |
314
| | | |
314
|
|
Non-cash purchase accounting
| |
|
1,236
| |
|
—
| |
|
677
| |
|
—
|
| |
|
1,913
|
|
Adjusted EBITDA
| |
$
|
29,076
| |
$
|
12,872
| |
$
|
11,650
| |
$
|
(8,129
|
)
| |
$
|
45,469
|
| | | | | | | | | |
|
| | THREE MONTHS ENDED JULY 30, 2016 |
| | Fire & Emergency | | Commercial | | Recreation | | Corporate & Other | | Total |
| | | | | | | | | |
|
|
Net Income (loss)
| |
$
|
14,599
| |
$
|
14,684
| |
$
|
4,221
| |
$
|
(20,424
|
)
| |
$
|
13,080
|
| | | | | | | | | |
|
|
Depreciation & amortization
| | |
2,760
| | |
1,970
| | |
1,617
| | |
509
| | | |
6,856
|
|
Interest expense, net
| | |
1,019
| | |
432
| | |
5
| | |
5,908
| | | |
7,364
|
|
Provision for income taxes
| |
|
—
| |
|
4
| |
|
—
| |
|
4,132
|
| |
|
4,136
|
|
EBITDA
| | |
18,378
| | |
17,090
| | |
5,843
| | |
(9,875
|
)
| | |
31,436
|
| | | | | | | | | |
|
|
Transaction expenses
| | |
—
| | |
—
| | |
—
| | |
196
| | | |
196
|
|
Sponsor expenses
| | |
—
| | |
—
| | |
—
| | |
25
| | | |
25
|
|
Restructuring costs
| | |
—
| | |
—
| | |
—
| | |
57
| | | |
57
|
|
Stock-based compensation expense
| | |
—
| | |
—
| | |
—
| | |
1,052
| | | |
1,052
|
|
Non-cash purchase accounting
| |
|
697
| |
|
—
| |
|
—
| |
|
—
|
| |
|
697
|
|
Adjusted EBITDA
| |
$
|
19,075
| |
$
|
17,090
| |
$
|
5,843
| |
$
|
(8,545
|
)
| |
$
|
33,463
|
| | | | | | | | | | | | | | | |
|
|
| |
| |
| |
| |
| |
| REV GROUP, INC. |
| ADJUSTED EBITDA BY SEGMENT |
| (Unaudited; in thousands) |
| | | | | | | | | |
|
| | NINE MONTHS ENDED JULY 29, 2017 |
| | Fire & Emergency | | Commercial | | Recreation | | Corporate & Other | | Total |
| | | | | | | | | |
|
|
Net Income (loss)
| |
$
|
54,489
| |
$
|
25,517
| |
$
|
11,506
| |
$
|
(82,811
|
)
| |
$
|
8,701
|
| | | | | | | | | |
|
|
Depreciation & amortization
| | |
10,178
| | |
6,041
| | |
8,223
| | |
2,369
| | | |
26,811
|
|
Interest expense, net
| | |
3,050
| | |
1,832
| | |
137
| | |
10,434
| | | |
15,453
|
|
Provision for income taxes
| |
|
4
| |
|
—
| |
|
—
| |
|
5,358
|
| |
|
5,362
|
|
EBITDA
| | |
67,721
| | |
33,390
| | |
19,866
| | |
(64,650
|
)
| | |
56,327
|
| | | | | | | | | |
|
|
Transaction expenses
| | |
772
| | |
—
| | |
—
| | |
1,970
| | | |
2,742
|
|
Sponsor expenses
| | |
—
| | |
—
| | | | |
418
| | | |
418
|
|
Restructuring costs
| | |
420
| | |
2,318
| | |
—
| | |
741
| | | |
3,479
|
|
Stock-based compensation expense
| | |
—
| | |
—
| | |
—
| | |
26,131
| | | |
26,131
|
|
Non-cash purchase accounting
| | |
1,275
| | |
—
| | |
1,848
| | |
—
| | | |
3,123
|
|
Loss on early extinguishment of debt
| |
|
—
| |
|
—
| |
|
—
| |
|
11,920
|
| |
|
11,920
|
|
Adjusted EBITDA
| |
$
|
70,188
| |
$
|
35,708
| |
$
|
21,714
| |
$
|
(23,470
|
)
| |
$
|
104,140
|
| | | | | | | | | |
|
| | NINE MONTHS ENDED JULY 30, 2016 |
| | Fire & Emergency | | Commercial | | Recreation | | Corporate & Other | | Total |
| | | | | | | | | |
|
|
Net Income (loss)
| |
$
|
45,294
| |
$
|
29,740
| |
$
|
3,443
| |
$
|
(60,366
|
)
| |
$
|
18,111
|
| | | | | | | | | |
|
|
Depreciation & amortization
| | |
6,639
| | |
6,050
| | |
3,295
| | |
1,131
| | | |
17,115
|
|
Interest expense, net
| | |
2,921
| | |
1,474
| | |
21
| | |
16,412
| | | |
20,828
|
|
Provision for income taxes
| |
|
—
| |
|
4
| |
|
—
| |
|
7,250
|
| |
|
7,254
|
|
EBITDA
| | |
54,854
| | |
37,268
| | |
6,759
| | |
(35,573
|
)
| | |
63,308
|
| | | | | | | | | |
|
|
Transaction expenses
| | |
—
| | |
—
| | |
—
| | |
1,581
| | | |
1,581
|
|
Sponsor expenses
| | |
—
| | |
—
| | |
—
| | |
150
| | | |
150
|
|
Restructuring costs
| | |
308
| | |
—
| | |
95
| | |
2,404
| | | |
2,807
|
|
Stock-based compensation expense
| | |
—
| | |
—
| | |
—
| | |
12,298
| | | |
12,298
|
|
Non-cash purchase accounting
| |
|
697
| |
|
—
| |
|
—
| |
|
—
|
| |
|
697
|
|
Adjusted EBITDA
| |
$
|
55,859
| |
$
|
37,268
| |
$
|
6,854
| |
$
|
(19,140
|
)
| |
$
|
80,841
|
| | | | | | | | | | | | | | | |
|
|
| |
| |
| |
| |
| REV GROUP, INC. |
| ADJUSTED NET INCOME |
| (Unaudited; in thousands) |
| | | | | | | |
|
| | Three Months Ended | | Nine Months Ended |
| | July 29,
2017 | | July 30,
2016 | | July 29,
2017 | | July 30,
2016 |
|
Net income
| |
$
|
15,191
| | |
$
|
13,080
| | |
$
|
8,701
| | |
$
|
18,111
| |
|
Amortization of Intangible Assets
| | |
5,109
| | | |
2,505
| | | |
10,417
| | | |
6,948
| |
|
Transaction Expenses
| | |
503
| | | |
196
| | | |
2,742
| | | |
1,581
| |
|
Sponsor Expenses
| | |
80
| | | |
25
| | | |
418
| | | |
150
| |
|
Restructuring Costs
| | |
2,279
| | | |
57
| | | |
3,479
| | | |
2,807
| |
|
Stock-based Compensation Expense
| | |
314
| | | |
1,052
| | | |
26,131
| | | |
12,298
| |
|
Non-cash Purchase Accounting Expense
| | |
1,913
| | | |
697
| | | |
3,123
| | | |
697
| |
|
Loss on Early Extinguishment of Debt
| | |
—
| | | |
—
| | | |
11,920
| | | |
—
| |
|
Income tax effect of adjustments
| |
|
(3,539
|
)
| |
|
(1,582
|
)
| |
|
(20,254
|
)
| |
|
(8,359
|
)
|
|
Adjusted Net Income
| |
$
|
21,850
|
| |
$
|
16,030
|
| |
$
|
46,677
|
| |
$
|
34,233
|
|
| | | | | | | |
|
|
|
| REV GROUP, INC. |
| ADJUSTED EBITDA GUIDANCE RECONCILIATION |
| (In thousands) |
|
|
|
| Fiscal Year 2017 |
| | Low |
| High |
|
Net income
| |
$
|
36,000
| |
$
|
39,000
|
|
Depreciation and Amortization
| | |
34,500
| | |
34,500
|
|
Interest Expense, net
| | |
19,200
| | |
19,200
|
|
Income Tax Expense
| |
|
19,100
| |
|
21,000
|
| | | |
|
|
EBITDA
| | |
108,800
| | |
113,700
|
| | | |
|
|
Transaction Expenses
| | |
2,750
| | |
2,750
|
|
Sponsor Expenses
| | |
450
| | |
450
|
|
Restructuring Costs
| | |
3,500
| | |
3,500
|
|
Stock-based Compensation Expense
| | |
26,500
| | |
26,500
|
|
Loss on Debt Extinguishment
| | |
11,900
| | |
11,900
|
|
Non-cash Purchase Accounting Expense
| |
|
3,100
| |
|
3,200
|
|
Adjusted EBITDA
| |
$
|
157,000
| |
$
|
162,000
|
| | | |
|
|
|
| REV GROUP, INC. |
| SEGMENT INFORMATION |
| (Unaudited; in thousands) |
|
| |
| |
| |
| |
| | Three Months Ended | | Nine Months Ended |
| | July 29, | | July 30, | | July 29, | | July 30, |
| | 2017 | | 2016 | | 2017 | | 2016 |
Net Sales: | | | | | | | | |
|
Fire & Emergency
| |
$
|
262,092
| | |
$
|
218,144
| | |
$
|
666,465
| | |
$
|
523,969
| |
|
Commercial
| | |
154,421
| | | |
182,946
| | | |
444,166
| | | |
499,760
| |
|
Recreation
| | |
177,874
| | | |
127,148
| | | |
470,917
| | | |
357,518
| |
|
Corporate & Other
| |
|
1,215
|
| |
|
—
|
| |
|
2,307
|
| |
|
—
|
|
|
Total Company Net Sales
| |
$
|
595,602
|
| |
$
|
528,238
|
| |
$
|
1,583,855
|
| |
$
|
1,381,247
|
|
| | | | | | | |
|
Adjusted EBITDA: | | | | | | | | |
|
Fire & Emergency
| |
$
|
29,076
| | |
$
|
19,075
| | |
$
|
70,188
| | |
$
|
55,859
| |
|
Commercial
| | |
12,872
| | | |
17,090
| | | |
35,708
| | | |
37,268
| |
|
Recreation
| | |
11,650
| | | |
5,843
| | | |
21,714
| | | |
6,854
| |
|
Corporate & Other
| |
|
(8,129
|
)
| |
|
(8,545
|
)
| |
|
(23,470
|
)
| |
|
(19,140
|
)
|
|
Total Company Adjusted EBITDA
| |
$
|
45,469
|
| |
$
|
33,463
|
| |
$
|
104,140
|
| |
$
|
80,841
|
|
| | | | | | | |
|
| | | | | | | |
|
| | July 29, | | October 29, | | | | |
Period-End Backlog: | | 2017 | | 2016 | | | | |
|
Fire & Emergency
| |
$
|
580,602
| | |
$
|
550,769
| | | | | |
|
Commercial
| | |
254,772
| | | |
226,067
| | | | | |
|
Recreation
| |
|
116,151
|
| |
|
80,420
|
| | | | |
|
Total Company Backlog
| |
$
|
951,525
|
| |
$
|
857,256
|
| | | | |
| | | | | | | |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170907006380/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.
