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 Dec 20, 2017
MILWAUKEE—REV Group Inc. has reported a 17.7 percent increase in consolidated net sales for the full year of 2017.
This increase was primarily driven by strong growth in the Fire & Emergency and Recreation segments. Consolidated net sales were $2.27 billion for the 12 months ended Oct. 31, which was an increase of 17.7 percent over the 12 months ended Oct. 29, 2016.
Consolidated net sales in the fourth quarter of 2017 were $683.9 million, growing 25.5 percent over the three months ended Oct. 29, 2016.
The Company’s fourth quarter 2017 net income was $22.7 million, or $0.35 per diluted share. Adjusted Net Income for the fourth quarter 2017 was $29.2 million, or $0.44 per diluted share, which grew 54.5 percent compared to $18.9 million, or $0.37 per diluted share, in the fourth quarter 2016. Net income for the full year 2017 was $31.4 million, or $0.50 per diluted share.
Full year 2017 net income was negatively impacted by several one-time expense items, the largest of which related to the company’s IPO and subsequent debt re-financings. Full year 2017 Adjusted Net Income was $75.9 million compared to $53.2 million for the full year 2016, which represents an increase of 42.7 percent resulting from higher earnings from operations, positive impact from its acquisitions, as well as lower interest expense.
“We are pleased to report another quarter of strong earnings and year-over-year growth,” REV Group President and CEO Tim Sullivan says. “Our strong fourth quarter completed the first successful year for REV Group as a public company. The combination of successful commercial and product strategies, higher sales volumes and our team’s focus on operational improvement initiatives drove improved profit margins across all our businesses on a year over year basis. I am proud to report 18 percent sales growth and 32 percent growth in Adjusted EBITDA in 2017, but even more importantly, I am pleased to report that all three of our segments continue to have strong outlooks. We plan to continue this trajectory of earnings growth in excess of sales growth into next year. In summary, it was a strong quarter and year, we are well positioned for continued growth in fiscal 2018 and we will continue to make progress toward our enterprise-wide EBITDA margin goal of 10 percent.”
The Recreation segment grew net sales to $188.9 million in the fourth quarter 2017, representing an increase of 56.7 percent over the prior year quarter. Recreation segment sales growth was partially driven by the acquisitions 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 18.8 percent during the quarter due to increased unit sales volumes and higher average net selling prices. In addition to the growth in unit sales for the segment’s type A coaches, the segment also continues to benefit from expansion of its type C line of products as well as overall growth in its end markets.
Recreation net sales for full year 2017 were $659.8 million, which was an increase of 38 percent over net sales of $478.1 million for full year 2016. Excluding the impact of acquired companies in 2017, full year Recreation net sales increased 14.5 percent compared to 2016. Recreation segment backlog at Oct. 31, 2017 was $144.8 million, which was up 80.1 percent from $80.4 million at the end of fiscal year 2016 and up 24.6 percent sequentially from $116.2 million at the end of the third quarter 2017.