REV Group(REVG) - 2025 Q1 - Quarterly Report

Financial Performance - Consolidated net sales decreased by $60.9 million, or 10.4$525.1 million for the three months ended January 31, 2025, compared to $586.0 million in the prior year quarter[92][93]. - Gross profit increased by$6.9 million, or 11.0%, to $69.8 million, with a gross margin of 13.3$164.5 million, or 90.0%, to $18.2 million for the three months ended January 31, 2025, compared to$182.7 million in the prior year quarter[100]. - Adjusted EBITDA increased by $6.3 million, or 20.7$36.8 million, with a significant increase of 78.6% when excluding the impact of the Bus Manufacturing Businesses[101]. - Adjusted Net Income increased by $6.2 million, or 42.2$20.9 million, driven by higher contributions from the Specialty Vehicles segment[102]. Segment Performance - The Specialty Vehicles segment saw increased shipments of fire apparatus and a favorable mix of ambulance units, contributing to higher net sales[93]. - Specialty Vehicles segment net sales decreased by $47.0 million, or 11.3$370.2 million for the three months ended January 31, 2025, compared to $417.2 million in the prior year quarter[104]. - Adjusted EBITDA for the Specialty Vehicles segment increased by$9.0 million, or 34.4%, to $35.2 million for the three months ended January 31, 2025, compared to$26.2 million in the prior year quarter[105]. - The Recreational Vehicles segment experienced a decrease in unit shipments, impacting overall sales negatively[93]. - Recreational Vehicles segment net sales decreased by $14.4 million, or 8.5$155.0 million for the three months ended January 31, 2025, compared to $169.4 million in the prior year quarter[106]. Operational Changes - The company announced the discontinuation of manufacturing operations at ENC and sold Collins and ENC, which were part of the Bus Manufacturing Businesses[91]. - The company incurred transaction expenses of$5.0 million in the three months ended January 31, 2024, primarily related to the sale of Collins[128]. - Restructuring related charges for the three months ended January 31, 2024, included write-offs of inventory associated with next-generation propulsion technology[128]. - The company reported impairment charges of $12.6 million primarily associated with the discontinuation of manufacturing operations at the ENC facility[128]. Cash Flow and Financing - Net cash used in operating activities was$13.1 million for the three months ended January 31, 2025, an improvement from $69.7 million in the prior year[112]. - Net cash provided by financing activities was$24.9 million for the three months ended January 31, 2025, primarily from net proceeds of $55.0 million from the revolving credit facility[115]. - The company repurchased 579,165 shares at a cost of$19.2 million during the three months ended January 31, 2025, at an average price of approximately $33.09 per share[118]. - The company expects to pay a quarterly cash dividend of$0.06 per share, with cash dividends of $3.9 million paid during the first quarter of fiscal year 2025[116]. - As of January 31, 2025, the company's outstanding debt under the 2021 ABL Facility was$140.0 million, with availability of $262.9 million[121]. - The company amended the 2021 ABL Agreement to decrease the aggregate commitments for revolving loans and letters of credit from$550.0 million to $450.0 million[122]. Tax and Accounting - The provision for income taxes decreased significantly to$3.8 million, or 17.3% of pre-tax income, compared to $61.5 million, or 25.2% of pre-tax income, in the prior year quarter[99]. - There were no off-balance sheet arrangements or special-purpose entities created for raising capital or incurring debt[129]. - The company has not experienced any material changes in exposure to interest rate risk, foreign exchange risk, or commodity price risk[132]. - The preparation of financial statements requires estimates and assumptions that affect reported amounts, as detailed in the Annual Report on Form 10-K for the fiscal year ended October 31, 2024[130]. - Recent accounting pronouncements and their impacts on financial statements are discussed in Note 1 of the Notes to Condensed Unaudited Consolidated Financial Statements[131].