REV Group, Inc. (NYSE:REVG) Q4 2024 Earnings Conference Call December 11, 2024 10:00 AM ET Company Participants Drew Konop - Vice President, Investor Relations Mark Skonieczny - President & CEO Amy Campbell - CFO Conference Call Participants Mig Dobre - Baird Mike Shlisky - D.A. Davidson Angel Castillo - Morgan Stanley Jerry Revich - Goldman Sachs Operator Good day, and welcome to the REV Group Fourth Quarter Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] A ...

REV Group (REVG) reported $597.9 million in revenue for the quarter ended October 2024, representing a year-over-year decline of 13.8%. EPS of $0.51 for the same period compares to $0.53 a year ago.The reported revenue represents a surprise of +0.27% over the Zacks Consensus Estimate of $596.29 million. With the consensus EPS estimate being $0.50, the EPS surprise was +2.00%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Stree ...

Core Viewpoint - REV Group (REVG) reported quarterly earnings of $0.51 per share, exceeding the Zacks Consensus Estimate of $0.50 per share, but down from $0.53 per share a year ago, indicating a 2% earnings surprise [1] Financial Performance - The company posted revenues of $597.9 million for the quarter ended October 2024, surpassing the Zacks Consensus Estimate by 0.27%, but down from $693.3 million year-over-year [2] - Over the last four quarters, REV Group has exceeded consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - REV Group shares have increased approximately 62.9% since the beginning of the year, compared to the S&P 500's gain of 26.5% [3] Future Outlook - The company's earnings outlook will be crucial for determining the stock's immediate price movement, with current consensus EPS estimates at $0.39 for the coming quarter and $2.16 for the current fiscal year [4][7] - The estimate revisions trend for REV Group is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Transportation - Services industry, to which REV Group belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Group 1 - REV Group, Inc. (NYSE: REVG) has experienced significant stock price performance over the past year, indicating a strong market presence [1] - There are signs of softness in the company's financial metrics, suggesting potential challenges ahead [1] Group 2 - The investment strategy discussed emphasizes a long-term horizon, typically between 5 to 10 years, focusing on a balanced portfolio of growth, value, and dividend-paying stocks [1] - The preference for value stocks is highlighted, along with a strategy that includes selling options occasionally [1]

REV Group's NYSE: REVG stock price rose more than 200% in 12 months because of business strength, cash flow, and balance sheet health, and it can continue to set new highs. The guidance for Q3 is tepid, leading to a significant pullback in share prices, but the move revealed robust support aligning with the uptrend. It may take time for the market to regain footing and resume its advance, but the odds are high it will. Tepid or not, REVGroup will continue to drive value for shareholders. ▼ REV Group Today R ...

Financial Data and Key Metrics Changes - Consolidated net sales decreased to $579 million, down $101 million compared to the same quarter last year, with an adjusted decrease of $55 million or 8.6% after excluding the impact of Collins Bus divestiture [13][14] - Consolidated adjusted EBITDA increased to $45.2 million, up $5.8 million year-over-year, reflecting a 49.7% increase when adjusting for Collins Bus [14][17] - Net debt at the end of the quarter was $165 million, with a net debt to trailing 12-month adjusted EBITDA ratio just below 1x [12][22] Business Line Data and Key Metrics Changes - Specialty Vehicles segment sales were $432 million, a decrease of $34 million compared to the prior year, but increased by $12 million or 2.8% when excluding Collins Bus [15][17] - Recreational Vehicle segment net sales decreased to $147.4 million, down 31% year-over-year, primarily due to lower unit shipments and increased discounting [18][19] - Specialty Vehicles segment adjusted EBITDA was $44.3 million, an increase of 116% year-over-year when adjusted for Collins Bus [17] Market Data and Key Metrics Changes - Industry-wide retail sales of Class A, B, and C units declined by 15%, 20%, and 4% respectively over the trailing 12 months [10] - Dealer inventories for recreational vehicles decreased by 20% since the beginning of the calendar year, indicating improved health of dealer inventory [20][30] Company Strategy and Development Direction - The company aims to maintain double-digit margins across its specialty vehicles segment, with expectations for continued momentum in fire and emergency sales [18][23] - The strategy includes operational improvements and simplification efforts within the fire group to enhance efficiency and throughput [5][6] - The company is focused on aligning production with consumer preferences and managing costs aggressively in response to market challenges [11][19] Management's Comments on Operating Environment and Future Outlook - Management expects continued normalization of industry demand, with a balanced supply and demand dynamic anticipated [9] - The company acknowledges challenges in the recreational vehicle market but remains optimistic about the upcoming RV shows to gauge consumer sentiment [10][11] - Future guidance anticipates modest sequential revenue growth and slightly higher specialty vehicles margins as the company exits the year [18][23] Other Important Information - The company declared a regular quarterly cash dividend of $0.05 per share, payable on October 11 [22] - The wind down of the ENC municipal transit bus business is ahead of schedule, with final units expected to be completed within the fourth quarter [12][36] Q&A Session Summary Question: Can you unpack the fire and emergency portion of the performance? - Management noted that revenue growth in legacy fire and emergency was driven by mid-teens growth, with 60% from price mix and 40% from volume [26] Question: What is the breakdown of the book-to-bill ratio? - Management indicated that the book-to-bill ratio for units was about 1x, while the dollar ratio was 1.3x, with no specific breakdown between content and price available [27][28] Question: Can you provide an update on RV dealer inventories? - Management confirmed that dealer inventories are down 20% from the calendar year, indicating improved inventory health, but dealers remain hesitant to replenish orders [30] Question: What is the expected margin expansion for specialty vehicles? - Management anticipates low single-digit growth in EBITDA dollars and slight margin increases, maintaining double-digit margins into 2025 [32][33] Question: What is the status of the ENC business wind down? - Management confirmed that ENC generated around $40 million in revenue for the quarter and is ahead of schedule for wind down [36][37] Question: What is the outlook for the terminal trucks business? - Management indicated that the terminal trucks business is at a trough, with expectations for mid-single-digit margins going forward [39] Question: How is the company managing production in response to demand? - Management stated that production schedules are flexible, allowing adjustments based on order intake and demand [42]

The outlook for the rest of the year disappointed investors. Rev Group (REVG -10.68%) topped Wall Street earnings expectations for the most recent quarter but lowered its outlook for the full year. Investors are focused on the bad news to come, sending shares of Rev down 14% as of 10 a.m. ET. A recreational slowdown Rev is a maker of recreational vehicles (RVs) and specialty trucks including ambulances and other publicservice vehicles. The company earned $0.48 per share in its fiscal third quarter ending Ju ...

For the quarter ended July 2024, REV Group (REVG) reported revenue of $579.4 million, down 14.8% over the same period last year. EPS came in at $0.48, compared to $0.35 in the year-ago quarter. The reported revenue represents a surprise of -7.10% over the Zacks Consensus Estimate of $623.66 million. With the consensus EPS estimate being $0.44, the EPS surprise was +9.09%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine th ...

REV Group (REVG) came out with quarterly earnings of $0.48 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.35 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 9.09%. A quarter ago, it was expected that this company would post earnings of $0.28 per share when it actually produced earnings of $0.39, delivering a surprise of 39.29%. Over the last four quarters, the company has s ...

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