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Apr 30, 2021

REV Group Q2 2021 Earnings Report

Reported strong second quarter results and raised full year fiscal 2021 guidance, also reinstated quarterly cash dividend.

Key Takeaways

REV Group reported a strong second quarter with net sales of $643.6 million, a 17.7% increase compared to the prior year quarter, and net income of $20.6 million, compared to a net loss of $7.6 million in the prior year quarter. Adjusted EBITDA was $45.5 million, a significant increase from $7.6 million in the prior year quarter. The company also raised its full year fiscal 2021 Adjusted EBITDA guidance and reinstated its quarterly cash dividend.

Net sales increased by 17.7% to $643.6 million compared to the prior year quarter.

Net income was $20.6 million, a significant improvement from the net loss of $7.6 million in the prior year quarter.

Adjusted EBITDA reached $45.5 million, compared to $7.6 million in the prior year quarter.

Full year fiscal 2021 Adjusted EBITDA guidance was raised to a range of $145.0 to $160.0 million.

Total Revenue
$644M
Previous year: $547M
+17.7%
EPS
$0.39
Previous year: -$0.09
-533.3%
Adjusted EBITDA
$45.5M
Previous year: $7.6M
+498.7%
Gross Profit
$87.4M
Previous year: $52.4M
+66.8%
Cash and Equivalents
$7.7M
Previous year: $21.5M
-64.2%
Free Cash Flow
$29.5M
Previous year: $30.8M
-4.2%
Total Assets
$1.29B
Previous year: $1.46B
-11.6%

REV Group

REV Group

REV Group Revenue by Segment

Forward Guidance

The company provided its updated outlook for its fiscal year ended October 31st, 2021, which includes the following performance expectations:

Positive Outlook

  • Net Sales: $2,450 to $2,600 million
  • Net Income: $52 to $68 million
  • Adjusted EBITDA: $145 to $160 million
  • Adjusted Net Income: $73 to $88 million
  • Free Cash Flow: $65 to $88 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income