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Jan 31, 2024
REV Group Q1 2024 Earnings Report
Reported strong first quarter results and provided updated fiscal 2024 outlook.
Key Takeaways
REV Group reported a strong first quarter with net sales of $586.0 million and net income of $182.7 million, driven by pricing actions and operational improvements in the Specialty Vehicles segment. The company has updated its full-year fiscal 2024 outlook, projecting net sales between $2.45 and $2.55 billion and adjusted EBITDA between $145.0 and $165.0 million.
Net sales increased to $586.0 million compared to $583.5 million in the prior year quarter.
Net income was $182.7 million, a significant increase from the net loss of $13.5 million in the prior year quarter, including a gain on sale of Collins Bus.
Adjusted EBITDA increased to $30.5 million compared to $21.3 million in the prior year quarter.
The company completed the sale of Collins Bus Corporation and announced the discontinuation of manufacturing operations at its ElDorado National (California) facility.
REV Group
REV Group
REV Group Revenue by Segment
Revenue by Segment
Specialty Vehicles Revenue
CapyFin.comRecreational Vehicles Revenue
CapyFin.com Forward Guidance
REV Group adjusts its full-year fiscal 2024 outlook with net sales between $2.45 to $2.55 billion, net income of $224.0 to $245.0 million, Adjusted EBITDA of $145.0 to $165.0 million, and Adjusted Net Income of $72.0 to $90.0 million.
Positive Outlook
- Net sales are projected to be between $2.45 billion and $2.55 billion.
- Net income is expected to be between $224.0 million and $245.0 million.
- Adjusted EBITDA is anticipated to be between $145.0 million and $165.0 million.
- Adjusted Net Income is forecasted to be between $72.0 million and $90.0 million.
- Net cash from operating activities is projected to be between $16.0 million and $36.0 million.
Challenges Ahead
- Net cash from operating activities includes approximately $71.0 million of income tax and transaction costs related to divestiture activities.
- The wind down of ENC’s manufacturing operations is expected to be substantially completed by the end of fiscal year 2024.
- Lower net sales in the Recreational Vehicles segment negatively impacted consolidated net sales.
- Inflationary pressures and increased discounting affected the Recreational Vehicles segment.
- The company used a portion of the proceeds from the sale of Collins to reduce outstanding borrowings.
Revenue & Expenses
Visualization of income flow from segment revenue to net income