Mar. 7th, 2018
-
Net sales growth of 16 percent compared to the prior year1
period reflects increases across each of the Company’s reportable
business segments
-
First quarter net income of $9.4 million, an increase of 171 percent
compared to the prior year
-
First quarter Adjusted Net Income2 of $9.7 million or $0.15
per share, an increase of 72 percent compared to the prior year
-
First quarter Adjusted EBITDA2 of $21.3 million, an
increase of 0.9 percent compared to the prior year
-
Entered large and fast growing towables RV segment through the
acquisition of Lance Camper, completed in January 2018
-
Formed strategic alliance with Daimler AG for the sale and service of
its Setra product line in North America
-
Reaffirms full year fiscal 2018 outlook for net sales of $2.4 to $2.7
billion and Adjusted EBITDA of $200 to $220 million
-
Updates full year fiscal 2018 net income outlook to a range of $90 to
$110 million and Adjusted Net Income to a range of $110 to $125 million
MILWAUKEE--(BUSINESS WIRE)--
REV Group, Inc. (NYSE: REVG) today reported results for the three months
ended January 31, 2018 (“first quarter 2018”). Consolidated net sales in
the first quarter 2018 were $514.9 million, an increase of 16.2 percent
over the three months ended January 28, 2017 (“first quarter 2017”).
This increase reflects sales growth in each of the Company’s reported
operating segments which was partially driven by the impact of
acquisitions.
“Fiscal year 2018 is off to a good start as we saw continued growth
across most of our product categories and we remain on track to meet our
full year objectives,” said Tim Sullivan, CEO REV Group, Inc. “We
continue to remain highly focused on the execution of our commercial,
product and operating strategies to improve profitability as we work
towards our long-term goal of an enterprise-wide EBITDA margin in excess
of 10 percent. Additionally, we continued to execute on our disciplined
capital allocation strategy with the acquisition of Lance Camper this
quarter, which enables our entry into the large and fast growing
towables RV market. With a strong backlog of $1.24 billion we expect to
continue to see improving operating leverage in the business and thus
expect earnings growth to exceed sales growth in fiscal year 2018.”
The Company’s first quarter 2018 net income was $9.4 million, or $0.14
per diluted share compared to a net loss of $13.3 million, or $0.26 per
diluted share in the first quarter of 2017. First quarter 2018 net
income improved as a result of higher earnings from operations, the
benefit of acquisitions, lower interest expense, and the favorable
impact of recently enacted U.S. tax reform. Adjusted Net Income for the
first quarter 2018 was $9.7 million, or $0.15 per diluted share, which
grew 72.0 percent compared to $5.7 million, or $0.11 per diluted share,
in the first quarter 2017.
Adjusted EBITDA in the first quarter 2018 was $21.3 million,
representing growth of 0.9 percent over Adjusted EBITDA of $21.1 million
in the first quarter 2017. Adjusted EBITDA performance during the
quarter benefited from higher net sales and earnings from certain
business segments as well as the impact of acquisitions.
REV Group Segment Highlights
Fire & Emergency Segment
Fire & Emergency (“F&E”) segment net sales were $215.3 million for the
first quarter 2018, an increase of $29.9 million, or 16.1 percent, from
$185.4 million for the first quarter 2017. The increase in net sales of
F&E was driven by results from the Ferrara acquisition completed in
April 2017, as well as increased unit volumes. F&E backlog at the end of
the first quarter 2018 was up 5.4 percent to $622.3 million compared to
$590.3 million at the end of fiscal year 2017.
F&E Adjusted EBITDA3 was $18.2 million in the first
quarter 2018, which represented growth of 8.7 percent compared to $16.7
million in the first quarter 2017. The increase in F&E Adjusted EBITDA
was driven by higher unit volumes and the impact of the Ferrara
acquisition. First quarter 2018 F&E Adjusted EBITDA margin was 8.4
percent of net sales compared to 9.0 percent in the first quarter 2017.
This decrease was due to the timing and mix of shipments in the quarter.
Commercial Segment
Commercial segment net sales for the first quarter 2018 were $132.2
million, an increase of 1.5 percent compared to the first quarter 2017.
This increase was the result of higher unit sales in all segment product
categories, excluding school bus. School bus sales were down versus the
prior year quarter due to lower contractor unit sales. Commercial
backlog at the end of the first quarter was $337.8 million, a decrease
of 7.8 percent compared to $366.4 million at the end of fiscal year 2017.
Commercial segment Adjusted EBITDA was $4.5 million in the first quarter
2018 compared to $8.2 million in the first quarter 2017. Adjusted EBITDA
margin was 3.4 percent of net sales in the first quarter 2018 compared
to 6.3 percent in the first quarter 2017. The decrease was primarily due
to a shift in the timing of transit bus shipment as well as lower school
bus sales in the quarter.
During the first quarter 2018, REV formed a strategic alliance with
Daimler AG’s Setra bus division to expand REVs product offerings in the
luxury motorcoach segment. Beginning in our second quarter of 2018, the
Company will become Daimler’s exclusive distribution partner for its
Setra motor coach brand in North America. In addition, starting in July
2018, the Company will also be exclusively responsible for Setra’s North
American after-sales parts and service.
Recreation Segment
The Recreation segment grew net sales to $167.2 million in the first
quarter 2018, representing an increase of $40.5 million, or 32.0
percent, from the first quarter 2017. Recreation segment sales growth
was the result of strength in its end markets as well as sales from
acquired companies. Recreation segment backlog at the end of the first
quarter 2018 was $281.8 million, an increase of 94.6 percent from $144.8
million at the end of fiscal year 2017. This significant increase in
backlog was positively impacted by the acquired backlog in the Lance
Camper business.
Recreation segment Adjusted EBITDA grew 194.0 percent in the first
quarter 2018 to $8.2 million, compared to $2.8 million in the first
quarter 2017. Adjusted EBITDA margin in the first quarter 2018 grew 270
basis points to 4.9 percent of net sales compared to 2.2 percent in the
first quarter 2017. The expansion in profitability is attributable to
higher unit volumes, stronger product mix and the continued benefit from
ongoing operating initiatives in addition to the results from acquired
companies.
At the end of the first quarter 2018, the Company acquired Lance Camper
Manufacturing Corporation (“Lance”). Lance adds a premium portfolio of
truck campers, towable campers and toy haulers to REV’s existing suite
of motorizedofferings and gives the Recreation segment access to
the higher volume and rapidly growing towables RV market segment. Lance
has the number one selling truck camper in the U.S. and has won the
National RV Dealer Association’s prestigious Quality Circle Award 16
years running.
Working Capital, Liquidity and Capital Allocation
Net working capital4 for the Company at January 31, 2018 was
$389.3 million compared to $299.7 million at the end of fiscal year
2017. The increase in working capital was primarily due to the normal
seasonal increase in inventory compared to the end of fiscal year 2017,
as well as the timing of cash disbursements and the impact of the Lance
acquisition. Cash and equivalents totaled $12.7 million at January 31,
2018. Total debt at January 31, 2018 was $372.3 million (net of deferred
financing costs) and as a result, the Company had $143.4 million
available under its ABL revolving credit facility, which was amended to
increase its borrowing capacity to $450 million in December 2017.
Capital expenditures in the first quarter 2018 were $13.6 million
compared to $18.1 million in the prior year quarter.
Fiscal 2018 Full Year Outlook
Mr. Sullivan concluded, “First quarter results were in-line with our
expectations and our view of end market demand and macro conditions
remains consistent with prior expectations. Therefore, we are
reaffirming our prior guidance and are still expecting full fiscal year
2018 revenues of $2.4 to $2.7 billion and Adjusted EBITDA of $200 to
$220 million. Based on first quarter results, we are updating our
expectation of full fiscal year 2018 net income to be in the range of
$90 to $110 million and Adjusted Net Income to be in the range of $110
to $125 million.”
Quarterly Dividend
Our board of directors declared a quarterly dividend for our first
quarter of fiscal 2018, payable on May 31, 2018, to holders of record on
April 30, 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 first quarter
2018 results and outlook on March 8th at 11:00 a.m. ET. 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, 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.
Investors-REVG
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
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).
|
| |
| |
| REV GROUP, INC. |
| CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEETS |
| (Dollars in thousands) |
| | | |
|
| | January 31, | | October 31, |
| | 2018 | | 2017 |
|
ASSETS
| | | | |
|
Current assets:
| | | | |
|
Cash and cash equivalents
| |
$
|
12,743
| |
$
|
17,838
|
|
Accounts receivable, net
| | |
224,155
| | |
243,242
|
|
Inventories, net
| | |
486,724
| | |
452,380
|
|
Other current assets
| |
|
14,078
| |
|
13,372
|
|
Total current assets
| | |
737,700
| | |
726,832
|
| | | |
|
|
Property, plant and equipment, net
| | |
227,609
| | |
217,083
|
|
Goodwill
| | |
185,127
| | |
133,235
|
|
Intangibles assets, net
| | |
164,743
| | |
167,887
|
|
Other long-term assets
| |
|
9,357
| |
|
9,395
|
|
Total assets
| |
$
|
1,324,536
| |
$
|
1,254,432
|
| | | |
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
| | | | |
|
Current liabilities:
| | | | |
|
Current portion of long-term debt
| |
$
|
750
| |
$
|
750
|
|
Accounts payable
| | |
144,315
| | |
217,267
|
|
Customer advances
| | |
107,839
| | |
95,774
|
|
Accrued warranty
| | |
23,558
| | |
26,047
|
|
Other current liabilities
| |
|
59,937
| |
|
70,241
|
|
Total current liabilities
| | |
336,399
| | |
410,079
|
| | | |
|
|
Long-term debt, less current maturities
| | |
371,527
| | |
229,105
|
|
Deferred income taxes
| | |
15,475
| | |
22,527
|
|
Other long-term liabilities
| |
|
19,576
| |
|
20,281
|
|
Total liabilities
| | |
742,977
| | |
681,992
|
| | | |
|
|
Commitments and contingencies
| | | | |
|
Shareholders’ equity
| |
|
581,559
| |
|
572,440
|
|
Total liabilities and shareholders’ equity
| |
$
|
1,324,536
| |
$
|
1,254,432
|
| | | | | |
|
|
| |
| |
| REV GROUP, INC. |
| CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (Unaudited; dollars in thousands, except shares and per share
amounts) |
| | | |
|
| | Three Months Ended |
| | January 31,
2018 | | January 28,
2017 |
| | | |
|
|
Net sales
| |
$
|
514,855
| | |
$
|
442,937
| |
| | | |
|
|
Cost of sales
| |
|
462,303
|
| |
|
395,417
|
|
| | | |
|
|
Gross profit
| | |
52,552
| | | |
47,520
| |
| | | |
|
|
Operating expenses:
| | | | |
|
Selling, general and administrative
| | |
41,034
| | | |
56,498
| |
|
Research and development costs
| | |
1,731
| | | |
1,198
| |
|
Restructuring
| | |
4,052
| | | |
864
| |
|
Amortization of intangible assets
| |
|
4,739
|
| |
|
2,614
|
|
| | | |
|
|
Total operating expenses
| |
|
51,556
|
| |
|
61,174
|
|
| | | |
|
|
Operating income (loss)
| | |
996
| | | |
(13,654
|
)
|
| | | |
|
|
Interest expense, net
| |
|
5,417
|
| |
|
7,478
|
|
| | | |
|
|
Loss before benefit for income taxes
| | |
(4,421
|
)
| | |
(21,132
|
)
|
| | | |
|
|
Benefit for income taxes
| |
|
(13,842
|
)
| |
|
(7,829
|
)
|
| | | |
|
|
Net income (loss)
| |
$
|
9,421
|
| |
$
|
(13,303
|
)
|
| | | |
|
| Income (loss) per common share: | | | | |
|
Basic
| |
$
|
0.15
| | |
$
|
(0.26
|
)
|
|
Diluted
| |
$
|
0.14
| | |
$
|
(0.26
|
)
|
| | | |
|
| Dividends declared per common share | |
$
|
0.05
| | |
$
|
—
| |
| | | |
|
| Adjusted earnings per common share: | | | | |
|
Basic
| |
$
|
0.15
| | |
$
|
0.11
| |
|
Diluted
| |
$
|
0.15
| | |
$
|
0.11
| |
| | | |
|
| Weighted Average Shares Outstanding: | | | | |
|
Basic
| | |
64,287,052
| | | |
51,360,163
| |
|
Diluted
| | |
66,496,919
| | | |
51,360,163
| |
| | | | | | | |
|
|
| |
| |
| REV GROUP, INC. |
| CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Unaudited; Dollars in thousands) |
| | | |
|
| | Three Months Ended |
| | January 31,
2018 | | January 28,
2017 |
| | | |
|
|
Cash flows from operating activities:
| | | | |
|
Net income (loss)
| |
$
|
9,421
| | |
$
|
(13,303
|
)
|
|
Adjustments to reconcile net income (loss) to net cash used in
operating activities:
| | | | |
|
Depreciation and amortization
| | |
11,017
| | | |
7,421
| |
|
Amortization of debt issuance costs
| | |
441
| | | |
585
| |
|
Amortization of Senior Note discount
| | |
—
| | | |
42
| |
|
Stock-based compensation expense
| | |
1,750
| | | |
25,506
| |
|
Deferred income taxes
| | |
(10,414
|
)
| | |
(8,563
|
)
|
|
Gain on disposal of property, plant and equipment
| | |
(1,647
|
)
| | |
(205
|
)
|
| | | |
|
|
Changes in operating assets and liabilities, net of effects of
business acquisitions:
| |
|
(82,978
|
)
| |
|
(45,230
|
)
|
| | | |
|
|
Net cash used in operating activities
| | |
(72,410
|
)
| | |
(33,747
|
)
|
| | | |
|
|
Cash flows from investing activities:
| | | | |
|
Purchase of property, plant and equipment
| | |
(13,594
|
)
| | |
(18,095
|
)
|
|
Purchase of rental fleet vehicles
| | |
(5,252
|
)
| | |
(529
|
)
|
|
Proceeds from sale of property, plant and equipment
| | |
3,921
| | | |
919
| |
|
Acquisition of businesses, net of cash acquired
| |
|
(57,946
|
)
| |
|
(20,581
|
)
|
| | | |
|
|
Net cash used in investing activities
| | |
(72,871
|
)
| | |
(38,286
|
)
|
| | | |
|
|
Cash flows from financing activities:
| | | | |
|
Net proceeds from borrowings under revolving credit facility
| | |
142,313
| | | |
79,600
| |
|
Payment of dividends
| | |
(3,207
|
)
| | |
—
| |
|
Payment of debt issuance costs
| | |
(369
|
)
| | |
—
| |
|
Redemption of common stock options including employer payroll taxes
| | |
(982
|
)
| | |
(3,251
|
)
|
|
Payments of withholding and employer payroll taxes for vesting of
restricted stock
| | |
(133
|
)
| | |
—
| |
|
Proceeds from exercise of common stock options, net of employer
payroll taxes
| |
|
2,564
|
| |
|
—
|
|
| | | |
|
|
Net cash provided by financing activities
| |
|
140,186
|
| |
|
76,349
|
|
| | | |
|
|
Net (decrease) increase in cash and cash equivalents
| | |
(5,095
|
)
| | |
4,316
| |
|
Cash and cash equivalents, beginning of period
| |
|
17,838
|
| |
|
10,821
|
|
| | | |
|
|
Cash and cash equivalents, end of period
| |
$
|
12,743
|
| |
$
|
15,137
|
|
| | | |
|
|
|
| REV GROUP, INC. |
| SEGMENT INFORMATION |
| (Unaudited; in thousands) |
|
| |
| |
| | Three Months Ended |
| | January 31,
2018 | | January 28,
2017 |
Net Sales: | | | | |
|
Fire & Emergency
| |
$
|
215,252
| | |
$
|
185,371
| |
|
Commercial
| | |
132,239
| | | |
130,221
| |
|
Recreation
| | |
167,247
| | | |
126,706
| |
|
Corporate & Other
| |
|
117
|
| |
|
639
|
|
|
Total Company Net Sales
| |
$
|
514,855
|
| |
$
|
442,937
|
|
| | | |
|
Adjusted EBITDA: | | | | |
|
Fire & Emergency
| |
$
|
18,166
| | |
$
|
16,713
| |
|
Commercial
| | |
4,460
| | | |
8,174
| |
|
Recreation
| | |
8,152
| | | |
2,773
| |
|
Corporate & Other
| |
|
(9,476
|
)
| |
|
(6,549
|
)
|
|
Total Company Adjusted EBITDA
| |
$
|
21,302
|
| |
$
|
21,111
|
|
| | | |
|
| | | |
|
| | | |
|
Period-End Backlog: | | January 31,
2018 | | October 31,
2017 |
|
Fire & Emergency
| |
$
|
622,316
| | |
$
|
590,268
| |
|
Commercial
| | |
337,754
| | | |
366,447
| |
|
Recreation
| | |
281,813
| | | |
144,847
| |
|
Corporate & Other
| |
|
13
|
| |
|
27
|
|
|
Total Company Backlog
| |
$
|
1,241,896
|
| |
$
|
1,101,589
|
|
| | | | | | | |
|
|
| |
| |
| |
| |
| |
| REV GROUP, INC. |
| ADJUSTED EBITDA BY SEGMENT |
| (Unaudited; in thousands) |
| | | | | | | | | |
|
| | Three Months Ended January 31, 2018 |
| | Fire &
Emergency | | Commercial | | Recreation | | Corporate &
Other | | Total |
| | | | | | | | | |
|
|
Net Income (loss)
| |
$
|
11,557
| |
$
|
460
| |
$
|
2,845
| |
$
|
(5,441
|
)
| |
$
|
9,421
| |
| | | | | | | | | |
|
|
Depreciation & amortization
| | |
4,522
| | |
2,836
| | |
2,935
| | |
724
| | | |
11,017
| |
|
Interest expense, net
| | |
1,048
| | |
645
| | |
118
| | |
3,606
| | | |
5,417
| |
|
Benefit for income taxes
| |
|
-
| |
|
-
| |
|
-
| |
|
(13,842
|
)
| |
|
(13,842
|
)
|
|
EBITDA
| | |
17,127
| | |
3,941
| | |
5,898
| | |
(14,953
|
)
| | |
12,013
| |
| | | | | | | | | |
|
|
Restructuring costs
| | |
56
| | |
-
| | |
2,254
| | |
1,742
| | | |
4,052
| |
|
Transaction expenses
| | |
157
| | |
-
| | |
-
| | |
1,398
| | | |
1,555
| |
|
Stock-based compensation expense
| | |
-
| | |
-
| | |
-
| | |
1,750
| | | |
1,750
| |
|
Non-cash purchase accounting expense
| | |
396
| | |
239
| | |
-
| | |
-
| | | |
635
| |
|
Sponsor expenses
| | |
-
| | |
-
| | |
-
| | |
195
| | | |
195
| |
|
Legal Settlements
| | |
430
| | |
280
| | |
-
| | |
-
| | | |
710
| |
|
Deferred purchase price payment
| |
| - | |
| - | |
| - | |
| 392 |
| |
| 392 |
|
|
Adjusted EBITDA
| | $ | 18,166 | | $ | 4,460 | | $ | 8,152 | | $ | (9,476 | ) | | $ | 21,302 |
|
| | | | | | | | | |
|
| | Three Months Ended January 28, 2017 |
| | Fire &
Emergency | | Commercial | | Recreation | | Corporate &
Other | | Total |
| | | | | | | | | |
|
|
Net Income (loss)
| |
$
|
12,698
| |
$
|
4,563
| |
$
|
139
| |
$
|
(30,703
|
)
| |
$
|
(13,303
|
)
|
| | | | | | | | | |
|
|
Depreciation & amortization
| | |
2,809
| | |
1,930
| | |
2,157
| | |
525
| | | |
7,421
| |
|
Interest expense, net
| | |
1,172
| | |
817
| | |
42
| | |
5,447
| | | |
7,478
| |
|
Provision (benefit) for income taxes
| |
|
4
| |
|
-
| |
|
-
| |
|
(7,833
|
)
| |
|
(7,829
|
)
|
|
EBITDA
| | |
16,683
| | |
7,310
| | |
2,338
| | |
(32,564
|
)
| | |
(6,233
|
)
|
| | | | | | | | | |
|
|
Restructuring costs
| | |
-
| | |
864
| | |
-
| | |
-
| | | |
864
| |
|
Transaction expenses
| | |
-
| | |
-
| | |
-
| | |
378
| | | |
378
| |
|
Stock-based compensation expense
| | |
-
| | |
-
| | |
-
| | |
25,506
| | | |
25,506
| |
|
Non-cash purchase accounting expense
| | |
30
| | |
-
| | |
435
| | |
-
| | | |
465
| |
|
Sponsor expenses
| |
| - | |
| - | |
| - | |
| 131 |
| |
| 131 |
|
|
Adjusted EBITDA
| | $ | 16,713 | | $ | 8,174 | | $ | 2,773 | | $ | (6,549 | ) | | $ | 21,111 |
|
| | | | | | | | | |
|
|
| |
| |
| REV GROUP, INC. |
| ADJUSTED NET INCOME |
| (Unaudited; in thousands) |
| | | |
|
| | Three Months Ended |
| | January 31,
2018 | | January 28,
2017 |
|
Net income (loss)
| |
$
|
9,421
| | |
$
|
(13,303
|
)
|
|
Amortization of Intangible Assets
| | |
4,766
| | | |
2,614
| |
|
Restructuring Costs
| | |
4,052
| | | |
864
| |
|
Transaction Expenses
| | |
1,555
| | | |
378
| |
|
Stock-based Compensation Expense
| | |
1,750
| | | |
25,506
| |
|
Non-cash Purchase Accounting Expense
| | |
635
| | | |
465
| |
|
Sponsor Expenses
| | |
195
| | | |
131
| |
|
Legal Settlements
| | |
710
| | | |
—
| |
|
Deferred Purchase Price Payment
| | |
392
| | | |
—
| |
|
Impact of Tax Rate Change
| | |
(10,414
|
)
| | |
—
| |
|
Income Tax Effect of Adjustments
| |
|
(3,313
|
)
| |
|
(10,987
|
)
|
|
Adjusted Net Income
| |
$
|
9,749
|
| |
$
|
5,668
|
|
| | | |
|
|
|
| REV GROUP, INC. |
| ADJUSTED NET INCOME OUTLOOK RECONCILIATION |
| (In thousands) |
|
| Fiscal Year 2018 |
| | Low |
| High |
|
Net Income
| |
$
|
90,000
| | |
$
|
110,000
| |
|
Amortization of Intangible Assets
| | |
17,500
| | | |
15,500
| |
|
Restructuring Costs
| | |
5,000
| | | |
4,000
| |
|
Transaction Expenses
| | |
2,000
| | | |
1,600
| |
|
Stock-based Compensation Expense
| | |
6,000
| | | |
5,000
| |
|
Non-cash Purchase Accounting Expense
| | |
1,300
| | | |
1,000
| |
|
Legal Settlements
| | |
800
| | | |
700
| |
|
Sponsor Expenses
| | |
900
| | | |
700
| |
|
Deferred Purchase Price Payout
| | |
6,500
| | | |
6,000
| |
|
One-time Benefit of U.S. Tax Reform
| | |
(10,400
|
)
| | |
(10,400
|
)
|
|
Income Tax Effect of Adjustments
| |
|
(10,100
|
)
| |
|
(8,700
|
)
|
|
Adjusted Net Income
| |
$
|
109,500
|
| |
$
|
125,400
|
|
| | | |
|
|
|
| REV GROUP, INC. |
| ADJUSTED EBITDA OUTLOOK RECONCILIATION |
| (In thousands) |
|
| Fiscal Year 2018 |
| | Low |
| High |
|
Net Income
| |
$
|
90,000
| |
$
|
110,000
|
|
Depreciation and Amortization
| | |
48,000
| | |
47,000
|
|
Interest Expense, net
| | |
23,000
| | |
21,000
|
|
Income Tax Expense
| |
|
16,500
| |
|
23,000
|
| | | |
|
|
EBITDA
| | |
177,500
| | |
201,000
|
| | | |
|
|
Restructuring Costs
| | |
5,000
| | |
4,000
|
|
Transaction Expenses
| | |
2,000
| | |
1,600
|
|
Stock-based Compensation Expense
| | |
6,000
| | |
5,000
|
|
Non-cash Purchase Accounting Expense
| | |
1,300
| | |
1,000
|
|
Legal Settlements
| | |
800
| | |
700
|
|
Sponsor Expenses
| | |
900
| | |
700
|
|
Deferred Purchase Price Payout
| |
|
6,500
| |
|
6,000
|
|
Adjusted EBITDA
| |
$
|
200,000
| |
$
|
220,000
|
| | | |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20180307006213/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.
