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Jul 31, 2020

REV Group Q3 2020 Earnings Report

REV Group's financial performance declined in Q3 2020 due to decreased net sales and profitability, impacted by COVID-19 related disruptions and divestiture of shuttle bus businesses.

Key Takeaways

REV Group reported a decrease in net sales and a net loss for the third quarter of 2020, impacted by COVID-19 related supply chain disruptions and employee absenteeism. The company also completed the sale of two shuttle bus businesses. Despite these challenges, the company saw stabilization in many end markets and made progress on its operating model.

Net sales decreased by 5.6% to $582.2 million compared to the prior year quarter.

Net loss was $3.6 million, compared to net income of $5.6 million in the prior year quarter.

Adjusted EBITDA decreased to $21.4 million from $33.5 million in the prior year quarter.

Completed the sale of two shuttle bus businesses for approximately $49 million in cash.

Total Revenue
$582M
Previous year: $617M
-5.6%
EPS
$0.1
Previous year: $0.21
-52.4%
Adjusted EBITDA
$21.4M
Previous year: $33.5M
-36.1%
Gross Profit
$66.5M
Previous year: $71.3M
-6.7%
Cash and Equivalents
$17.3M
Previous year: $19.8M
-12.6%
Free Cash Flow
$1M
Previous year: $56.5M
-98.2%
Total Assets
$1.41B
Previous year: $1.41B
+0.2%

REV Group

REV Group

REV Group Revenue by Segment

Forward Guidance

The company provided its outlook for fiscal year 2020, including net revenue of $2.25 to $2.3 billion and Adjusted EBITDA of $64 to $68 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income