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 .
Fri Sep 8, 2017
MILWAUKEE—REV Group, Inc. has reported results for the three months ended July 29. Consolidated net sales in the third quarter of 2017 were $595.6 million, growing 12.8 percent over the three months ended July 30, 2016.
This increase was driven by strong growth in the Fire & Emergency and Recreation segments, offset slightly by the impact of a chassis recall, which delayed shipments in both the Fire & Emergency and Commercial segments.
The sanctioned repair for these recalled chassis is being implemented and the impacted REV vehicle conversions will be shipped in REV’s fourth quarter. Year-to-date consolidated net sales were $1.6 billion for the nine months ended July 29, which was an increase of 14.7 percent over the first nine months of fiscal 2016.
The company’s third quarter 2017 net income was $15.2 million, or $0.23 per diluted share. Adjusted Net Income1 for the third quarter 2017 was $21.9 million, or $0.33 per diluted share, which grew 36.3 percent compared to $16 million, or $0.31 per diluted share, in the third quarter 2016 (third quarter 2017 diluted earnings per share is calculated using 14 million more shares outstanding than the prior year quarter). Net income for the first nine months of 2017 was $8.7 million, or $0.14 per diluted share due to several one-time expense items, the largest of which related to the IPO and subsequent debt re-financings. Year-to-date Adjusted Net Income1 was $46.7 million for the first nine months of 2017 compared to $34.2 million for the first nine months of 2016, which represents an increase of 36.4 percent resulting from higher earnings from operations as well as lower interest expense.
“We are pleased to report our third straight quarter of strong earnings as a public company,” REV Group, Inc. President and CEO Tim Sullivan says. “The quarter was one of significant progress where we both delivered significant growth in net sales and EBITDA as well as made anticipated progress on many of our longer-term growth strategies in parts and service, operational and commercial excellence, new product introductions, and value creating capital allocation. Both our Fire & Emergency and Recreation segments performed very well this quarter and continue to have strong outlooks.
“Within our Commercial segment, we are continuing our focus on driving profitability and we are encouraged by growth in our backlog over last quarter as well as the LA County win, which will benefit future fiscal years. We expect this segment to return to growth in the fourth quarter. The supplier-initiated chassis recall during our third quarter shifted revenues out a bit, however we nevertheless performed strongly against our consolidated EBITDA expectations for the quarter due to the strength of our Fire & Emergency and Recreation segments.
“Looking ahead to the fourth quarter, parts to repair the vehicles impacted by the chassis recall are now available and we are again able to ship the impacted vehicles. Through the first nine months of the year, we are on track with our expectations for full-year 2017 earnings and therefore we are reaffirming previous guidance for the full year. In summary, it was a strong quarter and we continue to make incremental progress toward our enterprise-wide EBITDA margin goal as well as our organic and inorganic growth objectives.”
REV Group also reported that effective Sept. 5, REV established a collaborative connection with Ford Motor Company dealers to provide its dealers with a complete catalog of genuine Ford chassis parts through its REV Parts Division to all of REV’s dealers. This access to Ford parts cataloging information allows REV dealers to order genuine Ford chassis parts through REV’s online parts system for a complete range of REV vehicle brands built on Ford chassis.
“Our connection with Ford Motor Company dealers to provide genuine OEM-certified chassis parts is a key step toward our broader strategy of achieving our commitment to offer our dealers and end-user customers industry-leading OEM parts quality and availability,” Sullivan says.
The Recreation segment grew net sales to $177.9 million in the third quarter 2017, representing an increase of 39.9 percent over the prior year period. Recreation segment sales growth was partially driven by the acquisition of Renegade RV and Midwest Automotive Designs which were completed on Dec. 30, 2016 and April 13, 2017, respectively. Recreation net sales excluding the acquisitions of Renegade and Midwest increased 9.3 percent during the quarter due to increased unit sales volumes and higher average selling prices. In addition to the growth in unit sales for the segment’s type A coaches, the segment is also benefiting from expansion of its type C line of products as well as overall growth in its end markets.
Recreation net sales for the nine months ended July 29 were $470.9 million, which was an increase of 31.7 percent over net sales of $357.5 million for the first nine months of fiscal 2016. Excluding acquired companies, year-to-date Recreation net sales increased 13 percent compared to the same period in 2016. Recreation segment backlog at the end of the third quarter 2017 was $116.2 million, which was up 44.4 percent from $80.4 million at the end of fiscal year 2016 and up 3.1 percent sequentially from $112.7 million at the end of the second quarter 2017.