REV Group(REVG)2025-06-04 11:15Financial Performance - Consolidated net sales for the three months ended April 30, 2025, increased by $12.2 million, or 2.0%, compared to the prior year quarter, while net sales for the six months decreased by $48.7 million, or 4.0%[99][100]. - Gross profit for the three months ended April 30, 2025, increased by $18.4 million, or 23.8%, compared to the prior year quarter, with a gross margin of 15.2%, while for the six months, gross profit increased by $25.3 million, or 18.0%[101][102]. - The company reported a net income of $19.0 million for the three months ended April 30, 2025, compared to $15.2 million in the prior year quarter, and a net income of $37.2 million for the six months compared to $197.9 million in the prior year[97]. - Adjusted EBITDA for the three months ended April 30, 2025, was $58.9 million, compared to $37.5 million in the prior year quarter, and for the six months, it was $95.7 million compared to $68.0 million[97]. - Consolidated net income increased by $3.8 million to $19.0 million for the three months ended April 30, 2025, but decreased by $160.7 million to $37.2 million for the six months ended April 30, 2025 compared to the prior year[112][113]. - Consolidated Adjusted EBITDA increased by $21.4 million, or 40.7%, to $58.9 million for the three months ended April 30, 2025, and by $27.7 million, or 68.0%, for the six months ended April 30, 2025[114][115]. - Adjusted Net Income increased by $14.5 million, or 69.4%, to $35.4 million for the three months ended April 30, 2025, and by $20.7 million, or 58.1%, for the six months ended April 30, 2025[116][117]. Segment Performance - The Specialty Vehicles segment saw increased shipments of fire apparatus contributing to higher net sales, while the Recreational Vehicles segment experienced lower unit shipments[99][100]. - The gross profit margin for the Specialty Vehicles segment improved, while the Recreational Vehicles segment faced challenges with lower gross margins[101][102]. - Specialty Vehicles segment net sales increased by $16.5 million, or 3.8%, to $453.9 million for the three months ended April 30, 2025, while decreasing by $30.5 million, or 3.6%, to $824.1 million for the six months ended April 30, 2025[119][120]. - Recreational Vehicles segment net sales decreased by $4.4 million, or 2.4%, to $175.3 million for the three months ended April 30, 2025, and by $18.8 million, or 5.4%, to $330.3 million for the six months ended April 30, 2025[123][124]. - Specialty Vehicles segment Adjusted EBITDA increased by $22.5 million, or 66.6%, to $56.3 million for the three months ended April 30, 2025, and by $31.5 million, or 52.5%, for the six months ended April 30, 2025[121][122]. Costs and Expenses - Selling, general and administrative (SG&A) costs decreased by $4.7 million, or 9.3%, for the three months ended April 30, 2025, and by $18.9 million, or 17.7%, for the six months[103][104]. - Consolidated loss on assets held for sale was $30.0 million for both the three and six months ended April 30, 2025, resulting from the strategic decision to exit the non-motorized recreational vehicle manufacturing business[109]. Cash Flow and Financing - Net cash provided by operating activities for the six months ended April 30, 2025 was $103.9 million, a significant improvement from a net cash used of $29.6 million in the same period of 2024[132]. - Net cash used in investing activities for the six months ended April 30, 2025 was $15.9 million, compared to a net cash provided of $301.9 million in 2024, primarily due to capital expenditures[133]. - Net cash used in financing activities for the six months ended April 30, 2025 was $83.8 million, down from $255.4 million in 2024, with stock repurchases totaling $107.6 million[134]. - The company repurchased 3,456,979 shares at a cost of $107.6 million during the six months ended April 30, 2025, at an average price of approximately $31.10 per share[137]. - As of April 30, 2025, the company's outstanding debt under the Amended 2021 ABL Facility was $130.0 million, with availability of $263.2 million[139]. Strategic Decisions and Outlook - The company discontinued manufacturing operations at ENC and sold Collins in the first quarter of fiscal year 2024, impacting the Bus Manufacturing Businesses[96]. - The company is actively evaluating acquisition opportunities to expand its business, which has historically been a significant growth driver[95]. - The first fiscal quarter is typically the slowest sales volume quarter due to seasonal factors, impacting overall performance[94]. - Consolidated gain on sale of business was $1.5 million for the three months ended April 30, 2024, and $259.0 million for the six months ended April 30, 2024, primarily due to the sale of the Collins and Fire RTC businesses[107][108]. - Consolidated income tax benefit was $5.7 million for the three months ended April 30, 2025, compared to an expense of $2.7 million for the same period in 2024, reflecting a significant change in tax position[110][111]. Risk and Financial Condition - The company has not created any off-balance sheet arrangements that could materially affect its financial condition[147]. - There have been no material changes in the company's exposure to interest rate risk, foreign exchange risk, and commodity price risk[150].