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 Jun 7, 2017
MILWAUKEE - REV Group, Inc. has reported a 13.6 percent increase in consolidated net sales in the second quarter of 2017.
Net sales were $545.3 million over the three months, with the increase predominately driven by strong growth in the fire & emergency and the recreation segments. Year-to-date sales were $988.3 million for the six months, an increase of 15.9 percent over fiscal 2016.
The Company’s second quarter 2017 net income was $6.8 million, or $0.10 per diluted share. Second quarter 2017 net income was impacted by a number of one-time items that included an $11.9 million charge from the early extinguishment of debt following the company’s initial public offering and repayment of its Senior Secured Notes, as well as its April 2017 debt refinancing. Adjusted Net Income2 for the second quarter 2017 of $19 million, or $0.29 per diluted share, grew 33 percent compared to $14.3 million, or $0.28 per diluted share, in the second quarter fiscal 2016. Net income for the first six months of fiscal 2017 was a loss of $6.5 million, or a loss of $0.11 per diluted share due to several one-time expense items, the largest of which related to the IPO and debt refinancings referenced above. Year-to-date Adjusted Net Income2 was $24.8 million for the first half of fiscal 2017 compared to $18.2 million for the first six months of fiscal 2016, which represents an increase of 36.4 percent due to higher earnings from operations as well as lower interest expense.
Adjusted EBITDA2 in the second quarter 2017 was $37.6 million, representing growth of 16.1 percent over Adjusted EBITDA of $32.3 million in the second quarter 2016. The increase in Adjusted EBITDA was driven by a number of factors including higher vehicle sales, strong aftermarket parts sales, impact of acquisitions, ongoing procurement and production cost optimization initiatives and strategic pricing actions for specific vehicle categories. Adjusted EBITDA for the six months ended April 29, 2017 was $58.7 million, which was a 23.8 percent increase over the same period in fiscal 2016.
“We are pleased to report continued growth in both our sales and profitability," REV Group, Inc. President and CEO Tim Sullivan says. "Our second quarter 2017 results highlight our progress to leverage the scale of our now 29 market-leading specialty vehicle brands with the goal of generating consolidated Adjusted EBITDA margins in excess of 10 percent. Additionally, REV Group capitalized on our unique market position during the quarter by acquiring two highly regarded vehicle businesses in both Midwest Automotive Designs and Ferrara Fire Apparatus for our Recreation and Fire & Emergency segments, respectively. As a result, REV Group strengthened its position to grow sales and drive higher profitability in 2017 and beyond. Both businesses are excellent fits with REV Group and broaden our product portfolios and market reach while also providing significant cost and revenue synergy opportunities. Through the first six months of our fiscal year, we are on track with our plan for earnings in fiscal 2017 and we are updating our guidance for the full year based on the impact of our recent acquisitions.”
The Recreation segment grew net sales to $166.3 million in the second quarter 2017, representing growth of 31.6 percent over the prior year period. Segment sales growth was partially driven by the acquisition of Renegade RV, which was completed on Dec. 30, 2016. Net sales growth excluding the acquisitions of Renegade and Midwest was also strong at 13.5 percent as the RV end markets continue to grow and the segment is benefiting from expansion of its type C line of products, which were reintroduced in the middle of 2016. Recreation net sales for the six months ended April 29 were $293 million, which was an increase of 27.2 percent over net sales of $230.4 million for the first six months of fiscal 2016. Recreation segment backlog at the end of the second quarter 2017 was $112.7 million, which was up 40.1 percent from $80.4 million at the end of fiscal year 2016.
Recreation segment Adjusted EBITDA grew in the second quarter 2017 to $7.3 million compared to $2.8 million in the second quarter 2016. Adjusted EBITDA margin in the second quarter doubled to 4.4 percent of net sales compared to 2.2 percent in the second quarter 2016. The strong 220 basis point expansion in profitability is attributable to reduced discounting, a higher mix of type A diesel and type C units and benefits from the company's ongoing procurement, cost of quality and other operating initiatives. Year-to-date fiscal 2017 Adjusted EBITDA in Recreation was $10.1 million, which was an almost nine-fold increase versus the first six months of fiscal 2016.