REV Group, Inc. has recently released its 10-Q report, providing an in-depth look at its financial performance and operations. The company designs, manufactures, and distributes specialty vehicles, and related aftermarket parts and services in the United States, Canada, and internationally. It 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, type A school buses, sweepers, and terminal trucks, and the Recreation segment offers motorized and towable RV models.
In the "Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of the 10-Q report, REV Group, Inc. provided a reconciliation of net income to Adjusted EBITDA and Adjusted Net Income for its Specialty Vehicles and Recreational Vehicles segments.
For the Specialty Vehicles segment, net sales for the three months ended July 31, 2024, decreased by 7.3% compared to the prior year quarter, with adjusted EBITDA increasing by 49.2%. However, excluding the impact of the Collins divestiture, net sales increased by 2.8%, and adjusted EBITDA increased by 116.1% compared to the prior year quarter. For the nine months ended July 31, 2024, net sales increased by 3.0%, and adjusted EBITDA increased by 88.9%. Excluding the impact of the Collins divestiture, net sales increased by 11.3%, and adjusted EBITDA increased by 191.3% compared to the prior year period.
In the Recreational Vehicles segment, net sales for the three months ended July 31, 2024, decreased by 31.3% compared to the prior year quarter, with adjusted EBITDA decreasing by 48.9%. For the nine months ended July 31, 2024, net sales decreased by 28.8%, and adjusted EBITDA decreased by 54.0% compared to the prior year period.
The report also provided an overview of the company's backlog, indicating an increase in backlog within the Specialty Vehicles segment, partially offset by a decrease within the Recreational Vehicles segment. As of July 31, 2024, the company's backlog was $4,354.7 million compared to $4,136.8 million as of July 31, 2023.
Additionally, the report discussed the company's liquidity and capital resources, including cash flow, dividends, share repurchases, and details about the company's ABL Facility.
REV Group, Inc. also outlined its use of Adjusted EBITDA and Adjusted Net Income as primary financial performance measures, providing a detailed explanation of how these measures are used to assess the company's financial performance and as a measurement in incentive compensation for management. These measures exclude the impact of certain items that are not indicative of the company's ongoing operating performance, providing a more meaningful comparison of operating fundamentals between companies within its markets.
Following these announcements, the company's shares moved -5.1%, and are now trading at a price of $30.21. If you want to know more, read the company's complete 10-Q report here.
