REV Group, Inc. has recently released its 10-Q report, offering a detailed look into the company's financial performance. The company operates through three segments: Fire & Emergency, Commercial, and Recreation. The Fire & Emergency segment provides fire apparatus equipment and ambulances, the Commercial segment offers transit buses and school buses, while the Recreation segment provides motorized and towable RV models. The 10-Q report provides a comprehensive analysis of the company's financial condition and results of operations, including a reconciliation of Net income to Adjusted EBITDA and Adjusted Net Income.
The Specialty Vehicles segment experienced a 2.9% increase in net sales, reaching $437.4 million for the three months ended April 30, 2024, compared to the prior year quarter. Adjusted EBITDA for this segment also saw a significant increase of 66.5%, reaching $33.8 million for the same period. For the six months ended April 30, 2024, the segment's net sales increased by 9.1%, reaching $854.6 million, with Adjusted EBITDA increasing by 134.4% to $66.0 million. These improvements were primarily attributed to price realization and increased shipments of fire apparatus and ambulance units, partially offset by lower shipments of terminal trucks.
In contrast, the Recreational Vehicles segment experienced a decline in net sales, with a 30.0% decrease for the three months ended April 30, 2024, and a 27.7% decrease for the six months ended April 30, 2024. Adjusted EBITDA for this segment also decreased by 58.4% and 55.6% for the three and six months ended April 30, 2024, respectively. The decrease in net sales and Adjusted EBITDA was primarily due to lower unit shipments, increased discounting, and inflationary pressures, partially offset by price realization and cost reduction actions.
The company's backlog, representing orders received from dealers or directly from end customers, increased to $4,339.1 million as of April 30, 2024, compared to $3,853.5 million as of April 30, 2023. This increase was primarily driven by continued demand and strong order intake for fire apparatus and ambulance units in the Specialty Vehicles segment, partially offset by a decrease in backlog related to the Recreational Vehicles segment.
In terms of liquidity and capital resources, the company's net cash used in operating activities for the six months ended April 30, 2024, was $29.6 million, primarily related to income tax payments associated with the sale of Collins, timing of accounts payable payments, and lower receipts of customer advances. The company also repurchased and retired 8,000,000 shares under the 2023 Share Repurchase Program at a cost of $126.1 million during the same period.
The market has reacted to these announcements by moving the company's shares 8.2% to a price of $26.82. If you want to know more, read the company's complete 10-Q report here.
