The Recreation Vehicle Industry Association commissioned an Economic Impact Study on the RV industry, released on June 7, 2016. The study found that the RV industry contributes about $49.7 billion in economic output or 0.28 percent of the Gross Domestic Product. Through its production and distribution linkages, the industry impacts firms in 426 of the 440 sectors of the United States economy.
Nationwide, the industry is responsible for 216,170 jobs, both directly and inderectly, creating an economic impact of $37.5 billion. The full study results, along with each individual state and congressional district's economic impact is available on the website by clicking here .
Wed Mar 8, 2017
REV Group, Inc. has reported results for the three months ended Jan. 28. Consolidated net sales in the first quarter of 2017 were $442.9 million, growing 18.8 percent over the three months ended Jan. 30, 2016. The increase was driven predominately by strong growth in the Fire & Emergency and Recreation segments. REV Group also had strong growth in first quarter 2017 in aftermarket parts sales, which grew 10.4 percent over first quarter 2016 as the company continues to execute on its growth strategies.
The company’s first quarter 2017 net loss was $13.3 million, or $0.26 per diluted share. The first quarter 2017 net loss was negatively impacted by a number of one-time items which included a $25.5 million before-tax stock compensation charge, due to the company's initial public offering, for stock options awarded prior to the IPO. REV Group’s IPO took place on Jan. 27 and closed on Feb. 1. Adjusted Net Income for the first quarter 2017 was $5.7 million, or $0.11 per diluted share, compared to $3.9 million, or $0.07 per diluted share, in the first quarter fiscal 2016.
Adjusted EBITDA in the first quarter 2017 was $21.1 million, representing growth of 40.4 percent over Adjusted EBITDA of $15 million in the first quarter 2016. The increase in Adjusted EBITDA was driven by a number of factors including higher vehicle sales, strong aftermarket parts sales, lower discounts for certain vehicle categories and ongoing procurement and production cost optimization efforts.
“We are pleased to report strong results for our initial quarter as a public company," REV Group President and CEO Tim Sullivan says. "Our first quarter 2017 results demonstrate solid execution of the ongoing plan to scale our 27 market-leading specialty vehicle brands and meet our long-term target of generating company-wide Adjusted EBITDA margins of 10 percent. Our strategic efforts to increase profitability were evident in our results. Sales growth was driven by strong end-market demand, gains in market share and our new product initiatives. Our strong results serve as a testament to the hard work of our employees who are executing our strategies on a daily basis.”
REV Group Segment Highlights
Fire & Emergency – Fire & Emergency net sales for the first quarter 2017 were $185.4 million representing growth of 44.4 percent over the prior year period. Sales growth was driven, in part, by the acquisition of Kovatch Mobile Equipment in April 2016. Excluding the results of KME, F&E segment revenues grew 16.5 percemt over the prior year period primarily resulting from strong growth in ambulance vehicle sales and higher sales generated at the F&E Regional Technical Centers. F&E backlog at the end of the first quarter 2017 was up 4.8 percent to $577.1 million compared to $550.8 million at the end of fiscal year 2016.
F&E segment adjusted EBITDA3 was $16.7 million in the first quarter 2017 which was a growth of 9 percent compared to $15.3 million in the first quarter 2016. F&E Adjusted EBITDA was driven during the first quarter 2017 by higher vehicle sales and growth in RTC and aftermarket parts revenues. First quarter F&E Adjusted EBITDA margin was 9 percent of net sales compared to 11.9 percent in the first quarter 2016. The decline in margin percentage is attributable to the impact of the KME acquisition. REV Group is on schedule with the KME integration and plans to increase KME profitability as the year progresses and in line with its E-ONE brand over time, according to a press release.
Commercial – Commercial segment net sales for the first quarter 2017 were $130.2 million, which were down 7.3 percent compared to the prior year period. This decrease was in line with the company's expectations driven by lower sales in certain product categories as it is focusing on sales mix and are being more selective about which sales opportunities it pursues. End markets in all the Commercial product categories remain strong and growing versus the prior year. Commercial segment backlog grew slightly to $227.5 million from $226.1 million at the end of fiscal year 2016.
Commercial segment Adjusted EBITDA was $8.2 million in the first quarter 2017 compared to $5.2 million in the first quarter 2016, which is growth of 57.9 percent year-over-year. Adjusted EBITDA margin was 6.3 percent of net sales in the first quarter 2017 compared to 3.7 percent in the first quarter 2016. Adjusted EBITDA growth in the first quarter 2017 was strong for all Commercial product categories, with segment profitability improvement during the quarter driven by less discounting, lower fixed costs, procurement and product initiatives and growing aftermarket parts revenues.