Exhibit 99.1
March 7, 2018
NEWS RELEASE
FOR IMMEDIATE RELEASE
REV GROUP, INC. REPORTS FISCAL 2018 FIRST QUARTER RESULTS
| | • | | Net sales growth of 16 percent compared to the prior year1 period reflects increases across each of the Company’s reportable business segments |
| | • | | First quarter net income of $9.4 million, an increase of 171 percent compared to the prior year |
| | • | | First quarter Adjusted Net Income2 of $9.7 million or $0.15 per share, an increase of 72 percent compared to the prior year |
| | • | | First quarter Adjusted EBITDA2 of $21.3 million, an increase of 0.9 percent compared to the prior year |
| | • | | Entered large and fast growing towables RV segment through the acquisition of Lance Camper, completed in January 2018 |
| | • | | Formed strategic alliance with Daimler AG for the sale and service of its Setra product line in North America |
| | • | | Reaffirms full year fiscal 2018 outlook for net sales of $2.4 to $2.7 billion and Adjusted EBITDA of $200 to $220 million |
| | • | | Updates full year fiscal 2018 net income outlook to a range of $90 to $110 million and Adjusted Net Income to a range of $110 to $125 million |
Milwaukee, Wis.—(BUSINESS WIRE) — REV Group, Inc. (NYSE: REVG) today reported results for the three months ended January 31, 2018 (“first quarter 2018”). Consolidated net sales in the first quarter 2018 were $514.9 million, an increase of 16.2 percent over the three months ended January 28, 2017 (“first quarter 2017”). This increase reflects sales growth in each of the Company’s reported operating segments which was partially driven by the impact of acquisitions.
“Fiscal year 2018 is off to a good start as we saw continued growth across most of our product categories and we remain on track to meet our full year objectives,” said Tim Sullivan, CEO REV Group, Inc. “We continue to remain highly focused on the execution of our commercial, product and operating strategies to improve profitability as we work towards our long-term goal of an enterprise-wide EBITDA margin in excess of 10 percent. Additionally, we continued to execute on our disciplined capital allocation strategy with the acquisition of Lance Camper this quarter, which enables our entry into the large and fast growing towables RV market. With a strong backlog of $1.24 billion we expect to continue to see improving operating leverage in the business and thus expect earnings growth to exceed sales growth in fiscal year 2018.”
The Company’s first quarter 2018 net income was $9.4 million, or $0.14 per diluted share compared to a net loss of $13.3 million, or $0.26 per diluted share in the first quarter of 2017. First quarter 2018 net income improved as a result of higher earnings from operations, the benefit of acquisitions, lower interest expense, and the favorable impact of recently enacted U.S. tax reform. Adjusted Net Income for the first quarter 2018 was $9.7 million, or $0.15 per diluted share, which grew 72.0 percent compared to $5.7 million, or $0.11 per diluted share, in the first quarter 2017.
Adjusted EBITDA in the first quarter 2018 was $21.3 million, representing growth of 0.9 percent over Adjusted EBITDA of $21.1 million in the first quarter 2017. Adjusted EBITDA performance during the quarter benefited from higher net sales and earnings from certain business segments as well as the impact of acquisitions.
1 REV Group, Inc. changed its fiscal year end from the last Saturday to the last calendar day in October of each year. In addition, starting in fiscal 2018, the Company’s fiscal quarters will end on the last day of January, April, July and October.
2 REV Group, Inc. Adjusted Net Income and Adjusted EBITDA arenon-GAAP measures that are reconciled to their nearest GAAP measure later in this release. Note: These figures do not include the impact of acquisitions before their acquisition dates
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REV Group Segment Highlights
Fire & Emergency Segment
Fire & Emergency (“F&E”) segment net sales were $215.3 million for the first quarter 2018, an increase of $29.9 million, or 16.1 percent, from $185.4 million for the first quarter 2017. The increase in net sales of F&E was driven by results from the Ferrara acquisition completed in April 2017, as well as increased unit volumes. F&E backlog at the end of the first quarter 2018 was up 5.4 percent to $622.3 million compared to $590.3 million at the end of fiscal year 2017.
F&E Adjusted EBITDA3 was $18.2 million in the first quarter 2018, which represented growth of 8.7 percent compared to $16.7 million in the first quarter 2017. The increase in F&E Adjusted EBITDA was driven by higher unit volumes and the impact of the Ferrara acquisition. First quarter 2018 F&E Adjusted EBITDA margin was 8.4 percent of net sales compared to 9.0 percent in the first quarter 2017. This decrease was due to the timing and mix of shipments in the quarter.
Commercial Segment
Commercial segment net sales for the first quarter 2018 were $132.2 million, an increase of 1.5 percent compared to the first quarter 2017. This increase was the result of higher unit sales in all segment product categories, excluding school bus. School bus sales were down versus the prior year quarter due to lower contractor unit sales. Commercial backlog at the end of the first quarter was $337.8 million, a decrease of 7.8 percent compared to $366.4 million at the end of fiscal year 2017.
Commercial segment Adjusted EBITDA was $4.5 million in the first quarter 2018 compared to $8.2 million in the first quarter 2017. Adjusted EBITDA margin was 3.4 percent of net sales in the first quarter 2018 compared to 6.3 percent in the first quarter 2017. The decrease was primarily due to a shift in the timing of transit bus shipment as well as lower school bus sales in the quarter.
During the first quarter 2018, REV formed a strategic alliance with Daimler AG’s Setra bus division to expand REVs product offerings in the luxury motorcoach segment. Beginning in our second quarter of 2018, the Company will become Daimler’s exclusive distribution partner for its Setra motor coach brand in North America. In addition, starting in July 2018, the Company will also be exclusively responsible for Setra’s North American after-sales parts and service.
Recreation Segment
The Recreation segment grew net sales to $167.2 million in the first quarter 2018, representing an increase of $40.5 million, or 32.0 percent, from the first quarter 2017. Recreation segment sales growth was the result of strength in its end markets as well as sales from acquired companies. Recreation segment backlog at the end of the first quarter 2018 was $281.8 million, an increase of 94.6 percent from $144.8 million at the end of fiscal year 2017. This significant increase in backlog was positively impacted by the acquired backlog in the Lance Camper business.
Recreation segment Adjusted EBITDA grew 194.0 percent in the first quarter 2018 to $8.2 million, compared to $2.8 million in the first quarter 2017. Adjusted EBITDA margin in the first quarter 2018 grew 270 basis points to 4.9 percent of net sales compared to 2.2 percent in the first quarter 2017. The expansion in profitability is attributable to higher unit volumes, stronger product mix and the continued benefit from ongoing operating initiatives in addition to the results from acquired companies.
At the end of the first quarter 2018, the Company acquired Lance Camper Manufacturing Corporation (“Lance”). Lance adds a premium portfolio of truck campers, towable campers and toy haulers to REV’s existing suite of motorizedofferings and gives the Recreation segment access to the higher volume and rapidly growing towables RV
3 Segment Adjusted EBITDA is anon-GAAP measure that is explained and reconciled to its nearest GAAP metric later in this release.
2
market segment. Lance has the number one selling truck camper in the U.S. and has won the National RV Dealer Association’s prestigious Quality Circle Award 16 years running.
Working Capital, Liquidity and Capital Allocation
Net working capital4 for the Company at January 31, 2018 was $389.3 million compared to $299.7 million at the end of fiscal year 2017. The increase in working capital was primarily due to the normal seasonal increase in inventory compared to the end of fiscal year 2017, as well as the timing of cash disbursements and the impact of the Lance acquisition. Cash and equivalents totaled $12.7 million at January 31, 2018. Total debt at January 31, 2018 was $372.3 million (net of deferred financing costs) and as a result, the Company had $143.4 million available under its ABL revolving credit facility, which was amended to increase its borrowing capacity to $450 million in December 2017. Capital expenditures in the first quarter 2018 were $13.6 million compared to $18.1 million in the prior year quarter.
Fiscal 2018 Full Year Outlook
Mr. Sullivan concluded, “First quarter results werein-line with our expectations and our view of end market demand and macro conditions remains consistent with prior expectations. Therefore, we are reaffirming our prior guidance and are still expecting full fiscal year 2018 revenues of $2.4 to $2.7 billion and Adjusted EBITDA of $200 to $220 million. Based on first quarter results, we are updating our expectation of full fiscal year 2018 net income to be in the range of $90 to $110 million and Adjusted Net Income to be in the range of $110 to $125 million.”
Quarterly Dividend
Our board of directors declared a quarterly dividend for our first quarter of fiscal 2018, payable on May 31, 2018, to holders of record on April 30, 2018, in the amount of $0.05 per share of common stock, which equates to a rate of $0.20 per share of common stock on an annualized basis.
Conference Call
REV Group, Inc. will host a conference call to discuss its first quarter 2018 results and outlook on March 8th at 11:00 a.m. EDT. A supplemental earnings slide deck will be available tomorrow morning on the REV Group, Inc. investor relations website prior to the call. The call will be webcast simultaneously over the Internet. To access the webcast, listeners can go tohttp://investors.revgroup.com/investor-events-and-presentations/events at least 15 minutes prior to the event and follow instructions for listening to the webcast. An audio replay of the call and related question and answer session will be available for 12 months at this website.
About REV Group
REV Group, Inc. (NYSE: REVG) is a leading designer, manufacturer and distributor of specialty vehicles and related aftermarket parts and services. We serve a diversified customer base primarily in the United States through three segments: Fire & Emergency, Commercial and Recreation. We provide customized vehicle solutions for applications including: essential needs (ambulances, fire apparatus, school buses, mobility vans and municipal transit buses), industrial and commercial (terminal trucks,cut-away buses and street sweepers) and consumer leisure (recreational vehicles (“RVs”) and luxury buses). Our brand portfolio consists of 30 well-established principal vehicle brands including many of the most recognizable names within our served markets. Several of our brands pioneered their specialty vehicle product categories and date back more than 50 years.
Note RegardingNon-GAAP Measures
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). However, management believes that the evaluation of our ongoing operating results may be enhanced by a presentation of Adjusted EBITDA and Adjusted Net Income, which arenon-GAAP financial measures. Adjusted
4 Net Working capital is defined as current assets (excluding cash) less current liabilities (excluding current portion of long-term debt).
3
EBITDA represents net income before interest expense, income taxes, depreciation and amortization as adjusted for certainnon-recurring,one-time and other adjustments which we believe are not indicative of our underlying operating performance. Adjusted Net Income represents net income as adjusted for certainafter-tax,non-recurring,one-time and other adjustments which we believe are not indicative of our underlying operating performance as well as for theadd-back ofnon-cash intangible asset amortization and stock-based compensation.
The Company believes that the use of Adjusted EBITDA and Adjusted Net Income provide additional meaningful methods of evaluating certain aspects of its operating performance from period to period on a basis that may not be otherwise apparent under GAAP when used in addition to, and not in lieu of, GAAP measures. A reconciliation of Adjusted EBITDA and Adjusted Net Income to the most closely comparable financial measures calculated in accordance with GAAP is included in the financial appendix of this news release.
Forward Looking Statements
This news release contains statements that the Company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. This news release includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements.” These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “strives,” “goal,” “seeks,” “projects,” “intends,” “forecasts,” “plans,” “may,” “will” or “should” or, in each case, their negative or other variations or comparable terminology. They appear in a number of places throughout this news release and include statements regarding our intentions, beliefs, goals or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the industries in which we operate.
Our forward-looking statements are subject to risks and uncertainties, including those highlighted under “Risk Factors” and “Cautionary Statement on Forward-Looking Statements” in the Company’s annual report on Form10-K, which may cause actual results to differ materially from those projected or implied by the forward-looking statement. Forward-looking statements are based on current expectations and assumptions and currently available data and are neither predictions nor guarantees of future events or performance. You should not place undue reliance on forward-looking statements, which only speak as of the date hereof. The Company does not undertake to update or revise any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise, expect as required by applicable law.
Investors-REVG
Contact
Sandy Bugbee
VP, Treasurer and Investor Relations
Email: investors@revgroup.com
Phone:1-888-738-4037(1-888-REVG-037)
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| | | | | | | | |
| REV GROUP, INC. | |
| CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEETS | |
| (Dollars in thousands) | |
| | |
| | | January 31,
2018 | | | October 31,
2017 | |
ASSETS | | | | | | | | |
Current assets: | | | | | | | | |
Cash and cash equivalents | | $ | 12,743 | | | $ | 17,838 | |
Accounts receivable, net | | | 224,155 | | | | 243,242 | |
Inventories, net | | | 486,724 | | | | 452,380 | |
Other current assets | | | 14,078 | | | | 13,372 | |
| | | | | | | | |
Total current assets | | | 737,700 | | | | 726,832 | |
Property, plant and equipment, net | | | 227,609 | | | | 217,083 | |
Goodwill | | | 185,127 | | | | 133,235 | |
Intangibles assets, net | | | 164,743 | | | | 167,887 | |
Other long-term assets | | | 9,357 | | | | 9,395 | |
| | | | | | | | |
Total assets | | $ | 1,324,536 | | | $ | 1,254,432 | |
| | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | |
Current liabilities: | | | | | | | | |
Current portion of long-term debt | | $ | 750 | | | $ | 750 | |
Accounts payable | | | 144,315 | | | | 217,267 | |
Customer advances | | | 107,839 | | | | 95,774 | |
Accrued warranty | | | 23,558 | | | | 26,047 | |
Other current liabilities | | | 59,937 | | | | 70,241 | |
| | | | | | | | |
Total current liabilities | | | 336,399 | | | | 410,079 | |
Long-term debt, less current maturities | | | 371,527 | | | | 229,105 | |
Deferred income taxes | | | 15,475 | | | | 22,527 | |
Other long-term liabilities | | | 19,576 | | | | 20,281 | |
| | | | | | | | |
Total liabilities | | | 742,977 | | | | 681,992 | |
Commitments and contingencies | | | | | | | | |
Shareholders’ equity | | | 581,559 | | | | 572,440 | |
| | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 1,324,536 | | | $ | 1,254,432 | |
| | | | | | | | |
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| | | | | | | | |
| REV GROUP, INC. | |
| CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | |
| (Unaudited; dollars in thousands, except shares and per share amounts) | |
| |
| | | Three Months Ended | |
| | | January 31,
2018 | | | January 28,
2017 | |
Net sales | | $ | 514,855 | | | $ | 442,937 | |
Cost of sales | | | 462,303 | | | | 395,417 | |
| | | | | | | | |
Gross profit | | | 52,552 | | | | 47,520 | |
| | |
Operating expenses: | | | | | | | | |
Selling, general and administrative | | | 41,034 | | | | 56,498 | |
Research and development costs | | | 1,731 | | | | 1,198 | |
Restructuring | | | 4,052 | | | | 864 | |
Amortization of intangible assets | | | 4,739 | | | | 2,614 | |
| | | | | | | | |
Total operating expenses | | | 51,556 | | | | 61,174 | |
| | | | | | | | |
Operating income (loss) | | | 996 | | | | (13,654 | ) |
Interest expense, net | | | 5,417 | | | | 7,478 | |
| | | | | | | | |
Loss before benefit for income taxes | | | (4,421 | ) | | | (21,132 | ) |
Benefit for income taxes | | | (13,842 | ) | | | (7,829 | ) |
| | | | | | | | |
Net income (loss) | | $ | 9,421 | | | $ | (13,303 | ) |
| | | | | | | | |
Income (loss) per common share: | | | | | | | | |
Basic | | $ | 0.15 | | | $ | (0.26 | ) |
Diluted | | $ | 0.14 | | | $ | (0.26 | ) |
| | |
Dividends declared per common share | | $ | 0.05 | | | $ | — | |
| | |
Adjusted earnings per common share: | | | | | | | | |
Basic | | $ | 0.15 | | | $ | 0.11 | |
Diluted | | $ | 0.15 | | | $ | 0.11 | |
| | |
Weighted Average Shares Outstanding: | | | | | | | | |
Basic | | | 64,287,052 | | | | 51,360,163 | |
Diluted | | | 66,496,919 | | | | 51,360,163 | |
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| | | | | | | | |
| REV GROUP, INC. | |
| CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | |
| (Unaudited; Dollars in thousands) | |
| |
| | | Three Months Ended | |
| | | January 31,
2018 | | | January 28,
2017 | |
Cash flows from operating activities: | | | | | | | | |
Net income (loss) | | $ | 9,421 | | | $ | (13,303 | ) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | | | | | | | | |
Depreciation and amortization | | | 11,017 | | | | 7,421 | |
Amortization of debt issuance costs | | | 441 | | | | 585 | |
Amortization of Senior Note discount | | | — | | | | 42 | |
Stock-based compensation expense | | | 1,750 | | | | 25,506 | |
Deferred income taxes | | | (10,414 | ) | | | (8,563 | ) |
Gain on disposal of property, plant and equipment | | | (1,647 | ) | | | (205 | ) |
Changes in operating assets and liabilities, net of effects of business acquisitions: | | | (82,978 | ) | | | (45,230 | ) |
| | | | | | | | |
Net cash used in operating activities | | | (72,410 | ) | | | (33,747 | ) |
Cash flows from investing activities: | | | | | | | | |
Purchase of property, plant and equipment | | | (13,594 | ) | | | (18,095 | ) |
Purchase of rental fleet vehicles | | | (5,252 | ) | | | (529 | ) |
Proceeds from sale of property, plant and equipment | | | 3,921 | | | | 919 | |
Acquisition of businesses, net of cash acquired | | | (57,946 | ) | | | (20,581 | ) |
| | | | | | | | |
Net cash used in investing activities | | | (72,871 | ) | | | (38,286 | ) |
Cash flows from financing activities: | | | | | | | | |
Net proceeds from borrowings under revolving credit facility | | | 142,313 | | | | 79,600 | |
Payment of dividends | | | (3,207 | ) | | | — | |
Payment of debt issuance costs | | | (369 | ) | | | — | |
Redemption of common stock options including employer payroll taxes | | | (982 | ) | | | (3,251 | ) |
Payments of withholding and employer payroll taxes for vesting of restricted stock | | | (133 | ) | | | — | |
Proceeds from exercise of common stock options, net of employer payroll taxes | | | 2,564 | | | | — | |
| | | | | | | | |
Net cash provided by financing activities | | | 140,186 | | | | 76,349 | |
| | | | | | | | |
Net (decrease) increase in cash and cash equivalents | | | (5,095 | ) | | | 4,316 | |
Cash and cash equivalents, beginning of period | | | 17,838 | | | | 10,821 | |
| | | | | | | | |
Cash and cash equivalents, end of period | | $ | 12,743 | | | $ | 15,137 | |
| | | | | | | | |
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| | | | | | | | |
| REV GROUP, INC. | |
| SEGMENT INFORMATION | |
| (Unaudited; in thousands) | |
| |
| | | Three Months Ended | |
| | | January 31,
2018 | | | January 28,
2017 | |
Net Sales: | | | | | | | | |
Fire & Emergency | | $ | 215,252 | | | $ | 185,371 | |
Commercial | | | 132,239 | | | | 130,221 | |
Recreation | | | 167,247 | | | | 126,706 | |
Corporate & Other | | | 117 | | | | 639 | |
| | | | | | | | |
Total Company Net Sales | | $ | 514,855 | | | $ | 442,937 | |
| | | | | | | | |
| | |
Adjusted EBITDA: | | | | | | |
Fire & Emergency | | $ | 18,166 | | | $ | 16,713 | |
Commercial | | | 4,460 | | | | 8,174 | |
Recreation | | | 8,152 | | | | 2,773 | |
Corporate & Other | | | (9,476 | ) | | | (6,549 | ) |
| | | | | | | | |
Total Company Adjusted EBITDA | | $ | 21,302 | | | $ | 21,111 | |
| | | | | | | | |
| | |
Period-End Backlog: | | January 31,
2018 | | | October 31,
2017 | |
Fire & Emergency | | $ | 622,316 | | | $ | 590,268 | |
Commercial | | | 337,754 | | | | 366,447 | |
Recreation | | | 281,813 | | | | 144,847 | |
Corporate & Other | | | 13 | | | | 27 | |
| | | | | | | | |
Total Company Backlog | | $ | 1,241,896 | | | $ | 1,101,589 | |
| | | | | | | | |
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| | | | | | | | | | | | | | | | | | | | |
| REV GROUP, INC. | |
| ADJUSTED EBITDA BY SEGMENT | |
| (Unaudited; in thousands) | |
| |
| | | Three Months Ended January 31, 2018 | |
| | | Fire &
Emergency | | | Commercial | | | Recreation | | | Corporate &
Other | | | Total | |
Net Income (loss) | | $ | 11,557 | | | $ | 460 | | | $ | 2,845 | | | $ | (5,441 | ) | | $ | 9,421 | |
Depreciation & amortization | | | 4,522 | | | | 2,836 | | | | 2,935 | | | | 724 | | | | 11,017 | |
Interest expense, net | | | 1,048 | | | | 645 | | | | 118 | | | | 3,606 | | | | 5,417 | |
Benefit for income taxes | | | — | | | | — | | | | — | | | | (13,842 | ) | | | (13,842 | ) |
| | | | | | | | | | | | | | | | | | | | |
EBITDA | | | 17,127 | | | | 3,941 | | | | 5,898 | | | | (14,953 | ) | | | 12,013 | |
Restructuring costs | | | 56 | | | | — | | | | 2,254 | | | | 1,742 | | | | 4,052 | |
Transaction expenses | | | 157 | | | | — | | | | — | | | | 1,398 | | | | 1,555 | |
Stock-based compensation expense | | | — | | | | — | | | | — | | | | 1,750 | | | | 1,750 | |
Non-cash purchase accounting expense | | | 396 | | | | 239 | | | | — | | | | — | | | | 635 | |
Sponsor expenses | | | — | | | | — | | | | — | | | | 195 | | | | 195 | |
Legal Settlements | | | 430 | | | | 280 | | | | — | | | | — | | | | 710 | |
Deferred purchase price payment | | | — | | | | — | | | | — | | | | 392 | | | | 392 | |
| | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA | | $ | 18,166 | | | $ | 4,460 | | | $ | 8,152 | | | $ | (9,476 | ) | | $ | 21,302 | |
| | | | | | | | | | | | | | | | | | | | |
| |
| | | Three Months Ended January 28, 2017 | |
| | | Fire &
Emergency | | | Commercial | | | Recreation | | | Corporate &
Other | | | Total | |
Net Income (loss) | | $ | 12,698 | | | $ | 4,563 | | | $ | 139 | | | $ | (30,703 | ) | | $ | (13,303 | ) |
Depreciation & amortization | | | 2,809 | | | | 1,930 | | | | 2,157 | | | | 525 | | | | 7,421 | |
Interest expense, net | | | 1,172 | | | | 817 | | | | 42 | | | | 5,447 | | | | 7,478 | |
Provision (benefit) for income taxes | | | 4 | | | | — | | | | — | | | | (7,833 | ) | | | (7,829 | ) |
| | | | | | | | | | | | | | | | | | | | |
EBITDA | | | 16,683 | | | | 7,310 | | | | 2,338 | | | | (32,564 | ) | | | (6,233 | ) |
Restructuring costs | | | — | | | | 864 | | | | — | | | | — | | | | 864 | |
Transaction expenses | | | — | | | | — | | | | — | | | | 378 | | | | 378 | |
Stock-based compensation expense | | | — | | | | — | | | | — | | | | 25,506 | | | | 25,506 | |
Non-cash purchase accounting expense | | | 30 | | | | — | | | | 435 | | | | — | | | | 465 | |
Sponsor expenses | | | — | | | | — | | | | — | | | | 131 | | | | 131 | |
| | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA | | $ | 16,713 | | | $ | 8,174 | | | $ | 2,773 | | | $ | (6,549 | ) | | $ | 21,111 | |
| | | | | | | | | | | | | | | | | | | | |
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| | | | | | | | |
| REV GROUP, INC. | |
| ADJUSTED NET INCOME | |
| (Unaudited; in thousands) | |
| |
| | | Three Months Ended | |
| | | January 31,
2018 | | | January 28,
2017 | |
Net income (loss) | | $ | 9,421 | | | $ | (13,303 | ) |
Amortization of Intangible Assets | | | 4,766 | | | | 2,614 | |
Restructuring Costs | | | 4,052 | | | | 864 | |
Transaction Expenses | | | 1,555 | | | | 378 | |
Stock-based Compensation Expense | | | 1,750 | | | | 25,506 | |
Non-cash Purchase Accounting Expense | | | 635 | | | | 465 | |
Sponsor Expenses | | | 195 | | | | 131 | |
Legal Settlements | | | 710 | | | | — | |
Deferred Purchase Price Payment | | | 392 | | | | — | |
Impact of Tax Rate Change | | | (10,414 | ) | | | — | |
Income Tax Effect of Adjustments | | | (3,313 | ) | | | (10,987 | ) |
| | | | | | | | |
Adjusted Net Income | | $ | 9,749 | | | $ | 5,668 | |
| | | | | | | | |
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| | | | | | | | |
| REV GROUP, INC. | |
| ADJUSTED NET INCOME OUTLOOK RECONCILIATION | |
| (In thousands) | |
| |
| | | Fiscal Year 2018 | |
| | | Low | | | High | |
Net Income | | $ | 90,000 | | | $ | 110,000 | |
Amortization of Intangible Assets | | | 17,500 | | | | 15,500 | |
Restructuring Costs | | | 5,000 | | | | 4,000 | |
Transaction Expenses | | | 2,000 | | | | 1,600 | |
Stock-based Compensation Expense | | | 6,000 | | | | 5,000 | |
Non-cash Purchase Accounting Expense | | | 1,300 | | | | 1,000 | |
Legal Settlements | | | 800 | | | | 700 | |
Sponsor Expenses | | | 900 | | | | 700 | |
Deferred Purchase Price Payout | | | 6,500 | | | | 6,000 | |
One-time Benefit of U.S. Tax Reform | | | (10,400 | ) | | | (10,400 | ) |
Income Tax Effect of Adjustments | | | (10,100 | ) | | | (8,700 | ) |
| | | | | | | | |
Adjusted Net Income | | $ | 109,500 | | | $ | 125,400 | |
| | | | | | | | |
| | | | | | | | |
| REV GROUP, INC. | |
| ADJUSTED EBITDA OUTLOOK RECONCILIATION | |
| (In thousands) | |
| |
| | | Fiscal Year 2018 | |
| | | Low | | | High | |
Net Income | | $ | 90,000 | | | $ | 110,000 | |
Depreciation and Amortization | | | 48,000 | | | | 47,000 | |
Interest Expense, net | | | 23,000 | | | | 21,000 | |
Income Tax Expense | | | 16,500 | | | | 23,000 | |
| | | | | | | | |
EBITDA | | | 177,500 | | | | 201,000 | |
Restructuring Costs | | | 5,000 | | | | 4,000 | |
Transaction Expenses | | | 2,000 | | | | 1,600 | |
Stock-based Compensation Expense | | | 6,000 | | | | 5,000 | |
Non-cash Purchase Accounting Expense | | | 1,300 | | | | 1,000 | |
Legal Settlements | | | 800 | | | | 700 | |
Sponsor Expenses | | | 900 | | | | 700 | |
Deferred Purchase Price Payout | | | 6,500 | | | | 6,000 | |
| | | | | | | | |
Adjusted EBITDA | | $ | 200,000 | | | $ | 220,000 | |
| | | | | | | | |
11
