Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jul. 31, 2021 | Sep. 05, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --10-31 | |
Entity File Number | 001-37999 | |
Trading Symbol | REVG | |
Title of 12(b) Security | Common Stock ($0.001 Par Value) | |
Security Exchange Name | NYSE | |
Entity Registrant Name | REV Group, Inc. | |
Entity Central Index Key | 0001687221 | |
Entity Incorporation, State or Country Name | DE | |
Entity Tax Identification Number | 26-3013415 | |
Entity Address, Address Line One | 245 South Executive Drive, Suite 100 | |
Entity Address, City or Town | Brookfield | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53005 | |
City Area Code | 414 | |
Local Phone Number | 290-0190 | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 64,747,396 | |
Document Transition Report | false | |
Document Quarterly Report | true |
Condensed Unaudited Consolidate
Condensed Unaudited Consolidated Balance Sheets - USD ($) $ in Millions | Jul. 31, 2021 | Oct. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 9.2 | $ 11.4 |
Accounts receivable, net | 198.7 | 229.3 |
Inventories, net | 519.7 | 537.2 |
Other current assets | 39.1 | 34.1 |
Assets held for sale | 7.6 | |
Total current assets | 774.3 | 812 |
Property, plant and equipment, net | 154.1 | 168.4 |
Goodwill | 157.3 | 157.3 |
Intangible assets, net | 128.7 | 136.1 |
Right of use assets | 16.9 | 23.2 |
Other long-term assets | 21.6 | 15.3 |
Total assets | 1,252.9 | 1,312.3 |
Current liabilities: | ||
Current portion of long-term debt | 0 | 1.7 |
Accounts payable | 129.6 | 169.5 |
Customer advances | 183.3 | 170.1 |
Accrued warranty | 22.2 | 24.1 |
Short-term lease obligations | 6.9 | 8.4 |
Liabilities held for sale | 6.1 | |
Other current liabilities | 85.9 | 73.5 |
Total current liabilities | 434 | 447.3 |
Long-term debt, less current maturities | 250 | 340.5 |
Deferred income taxes | 3.2 | 2.9 |
Long-term lease obligations | 10.8 | 16.9 |
Other long-term liabilities | 33.4 | 32.4 |
Total liabilities | 731.4 | 840 |
Commitments and contingencies | ||
Shareholders' Equity: | ||
Preferred stock ($.001 par value, 95,000,000 shares authorized; none issued or outstanding) | ||
Common stock ($.001 par value, 605,000,000 shares authorized; 64,741,896 and 63,403,326 shares issued and outstanding, respectively) | 0.1 | 0.1 |
Additional paid-in capital | 504.1 | 496.1 |
Retained earnings (deficit) | 19.9 | (21.1) |
Accumulated other comprehensive loss | (2.6) | (2.8) |
Total shareholders' equity | 521.5 | 472.3 |
Total liabilities and shareholders' equity | $ 1,252.9 | $ 1,312.3 |
Condensed Unaudited Consolida_2
Condensed Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 31, 2021 | Oct. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, authorized shares | 95,000,000 | 95,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 605,000,000 | 605,000,000 |
Common stock, shares issued | 64,741,896 | 63,403,326 |
Common stock, shares outstanding | 64,741,896 | 63,403,326 |
Condensed Unaudited Consolida_3
Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 593.3 | $ 582.2 | $ 1,790.9 | $ 1,661.3 |
Cost of sales | 516.7 | 515.7 | 1,565.2 | 1,495 |
Gross profit | 76.6 | 66.5 | 225.7 | 166.3 |
Operating expenses: | ||||
Selling, general and administrative | 45.2 | 53.5 | 141 | 157.6 |
Research and development costs | 0.6 | 1.7 | 3.3 | 4.4 |
Amortization of intangible assets | 2.3 | 3 | 7.4 | 10.4 |
Restructuring | 2.5 | 1 | 6 | |
Impairment charges | 3.7 | 3.7 | ||
Total operating expenses | 48.1 | 64.4 | 152.7 | 182.1 |
Operating income (loss) | 28.5 | 2.1 | 73 | (15.8) |
Interest expense, net | 3.4 | 5.7 | 14.4 | 20.3 |
Loss on early extinguishment of debt | 1.4 | |||
(Gain) loss on business held for sale | (1) | 2.8 | ||
Loss on sale of business | 0.5 | 9.3 | ||
Loss (gain) on acquisition of business | 0.4 | (11.9) | ||
Income (loss) before provision (benefit) for income taxes | 26.1 | (4.1) | 54 | (33.5) |
Provision (benefit) for income taxes | 2.4 | (0.5) | 9.6 | (13.2) |
Net income (loss) | 23.7 | (3.6) | 44.4 | (20.3) |
Other comprehensive income (loss), net of tax | 0.4 | (0.8) | 0.2 | (0.9) |
Comprehensive income (loss) | $ 24.1 | $ (4.4) | $ 44.6 | $ (21.2) |
Net income (loss) per common share: | ||||
Basic | $ 0.37 | $ (0.06) | $ 0.70 | $ (0.32) |
Diluted | 0.36 | $ (0.06) | 0.68 | (0.32) |
Dividends declared per common share | $ 0.05 | $ 0.05 | $ 0.10 |
Condensed Unaudited Consolida_4
Condensed Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 44.4 | $ (20.3) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 24.2 | 30.9 |
Amortization of debt issuance costs | 1.6 | 1.8 |
Stock-based compensation expense | 5.4 | 7.2 |
Deferred income taxes | 0.4 | 8.3 |
Loss on early extinguishment of debt | 1.4 | |
Gain on sale of assets | (1.8) | (0.8) |
Impairment charges | 3.7 | |
(Gain) loss on business held for sale | 2.8 | |
Loss on sale of business | 9.3 | |
Loss (gain) on acquisition of business | 0.4 | (11.9) |
Changes in operating assets and liabilities, net | 21.8 | (3.2) |
Net cash provided by operating activities | 100.6 | 25 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (13.9) | (9.7) |
Purchase of rental and used vehicles | (3.3) | |
Proceeds from sale of assets | 12.5 | 6.7 |
Proceeds from sale of business | 50.9 | |
Acquisition of business | (54.8) | |
Other investing activities | 2 | |
Net cash provided by (used in) investing activities | 0.6 | (10.2) |
Cash flows from financing activities: | ||
Net proceeds from borrowings on revolving credit facility | 210 | 13 |
Repayment of long-term debt | (303.4) | (2.9) |
Payment of dividends | (3.3) | (9.5) |
Payment of debt issuance costs | (7) | |
Other financing activities | 0.3 | (1.4) |
Net cash used in financing activities | (103.4) | (0.8) |
Net (decrease) increase in cash and cash equivalents | (2.2) | 14 |
Cash and cash equivalents, beginning of period | 11.4 | 3.3 |
Cash and cash equivalents, end of period | 9.2 | 17.3 |
Cash paid (received) for: | ||
Interest | 12.3 | 18.1 |
Income taxes, net of refunds | $ (0.1) | $ 0.4 |
Condensed Unaudited Consolida_5
Condensed Unaudited Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained (Deficit) Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interest [Member] |
Balance at Oct. 31, 2019 | $ 505.2 | $ 0.1 | $ 490.8 | $ 15.8 | $ (1.7) | $ 0.2 |
Balance, shares at Oct. 31, 2019 | 62,217,486 | |||||
Net income (loss) | (9.4) | (9.4) | ||||
Sale of business | (0.2) | (0.2) | ||||
Stock-based compensation expense | 2.6 | 2.6 | ||||
Exercise of common stock options | 0.8 | 0.8 | ||||
Exercise of common stock options, shares | 102,000 | |||||
Vesting and issuance of restricted stock units and awards, net of forfeitures and employee tax withholdings, shares | 360,986 | |||||
Dividends declared on common stock | (3.1) | (3.1) | ||||
Balance at Jan. 31, 2020 | 495.9 | $ 0.1 | 494.2 | 3.3 | (1.7) | |
Balance, shares at Jan. 31, 2020 | 62,680,472 | |||||
Balance at Oct. 31, 2019 | 505.2 | $ 0.1 | 490.8 | 15.8 | (1.7) | $ 0.2 |
Balance, shares at Oct. 31, 2019 | 62,217,486 | |||||
Other comprehensive income (loss), net of tax | (0.9) | |||||
Balance at Jul. 31, 2020 | 482.1 | $ 0.1 | 495.8 | (11.2) | (2.6) | |
Balance, shares at Jul. 31, 2020 | 63,476,203 | |||||
Balance at Jan. 31, 2020 | 495.9 | $ 0.1 | 494.2 | 3.3 | (1.7) | |
Balance, shares at Jan. 31, 2020 | 62,680,472 | |||||
Net income (loss) | (7.6) | (7.6) | ||||
Other comprehensive income (loss), net of tax | (0.1) | (0.1) | ||||
Stock-based compensation expense | 2.9 | 2.9 | ||||
Vesting and issuance of restricted and performance stock units and awards, net of forfeitures and employee tax withholdings | (1.2) | (1.2) | ||||
Vesting and issuance of restricted stock units and awards, net of forfeitures and employee tax withholdings, shares | 717,054 | |||||
Reclassification of Liability Awards | (1.7) | (1.7) | ||||
Dividends declared on common stock | (3.3) | (3.3) | ||||
Balance at Apr. 30, 2020 | 484.9 | $ 0.1 | 494.2 | (7.6) | (1.8) | |
Balance, shares at Apr. 30, 2020 | 63,397,526 | |||||
Net income (loss) | (3.6) | (3.6) | ||||
Other comprehensive income (loss), net of tax | (0.8) | (0.8) | ||||
Stock-based compensation expense | 1.6 | 1.6 | ||||
Vesting and issuance of restricted stock units and awards, net of forfeitures and employee tax withholdings, shares | 78,677 | |||||
Balance at Jul. 31, 2020 | 482.1 | $ 0.1 | 495.8 | (11.2) | (2.6) | |
Balance, shares at Jul. 31, 2020 | 63,476,203 | |||||
Balance at Oct. 31, 2020 | 472.3 | $ 0.1 | 496.1 | (21.1) | (2.8) | |
Balance, shares at Oct. 31, 2020 | 63,403,326 | |||||
Stock-based compensation expense | 1.9 | 1.9 | ||||
Exercise of common stock options | 0.2 | 0.2 | ||||
Exercise of common stock options, shares | 6,000 | |||||
Vesting and issuance of restricted and performance stock units and awards, net of forfeitures and employee tax withholdings | (1.1) | (1.1) | ||||
Vesting and issuance of restricted stock units and awards, net of forfeitures and employee tax withholdings, shares | 901,313 | |||||
Settlement of liability classified award | 2 | 2 | ||||
Awards Classified to Liability , Shares | 169,142 | |||||
Balance at Jan. 31, 2021 | 475.3 | $ 0.1 | 499.1 | (21.1) | (2.8) | |
Balance, shares at Jan. 31, 2021 | 64,479,781 | |||||
Balance at Oct. 31, 2020 | 472.3 | $ 0.1 | 496.1 | (21.1) | (2.8) | |
Balance, shares at Oct. 31, 2020 | 63,403,326 | |||||
Other comprehensive income (loss), net of tax | 0.2 | |||||
Balance at Jul. 31, 2021 | 521.5 | $ 0.1 | 504.1 | 19.9 | (2.6) | |
Balance, shares at Jul. 31, 2021 | 64,741,896 | |||||
Balance at Jan. 31, 2021 | 475.3 | $ 0.1 | 499.1 | (21.1) | (2.8) | |
Balance, shares at Jan. 31, 2021 | 64,479,781 | |||||
Net income (loss) | 20.6 | 20.6 | ||||
Other comprehensive income (loss), net of tax | (0.2) | (0.2) | ||||
Stock-based compensation expense | 1.6 | 1.6 | ||||
Exercise of common stock options | 1.5 | 1.5 | ||||
Exercise of common stock options, shares | 191,000 | |||||
Issuance of restricted stock awards | 63,615 | |||||
Balance at Apr. 30, 2021 | 498.8 | $ 0.1 | 502.2 | (0.5) | (3) | |
Balance, shares at Apr. 30, 2021 | 64,734,396 | |||||
Net income (loss) | 23.7 | 23.7 | ||||
Other comprehensive income (loss), net of tax | 0.4 | 0.4 | ||||
Stock-based compensation expense | 1.9 | 1.9 | ||||
Exercise of common stock options, shares | 7,500 | |||||
Dividends declared on common stock | (3.3) | (3.3) | ||||
Balance at Jul. 31, 2021 | $ 521.5 | $ 0.1 | $ 504.1 | $ 19.9 | $ (2.6) | |
Balance, shares at Jul. 31, 2021 | 64,741,896 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation The unaudited Condensed Consolidated Financial Statements include the accounts of REV Group, Inc. (“REV” or “the Company”) and all its subsidiaries. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments (which include normal recurring adjustments, unless otherwise noted) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been condensed or omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited financial statements and notes thereto included in the Annual Report on Form 10-K of the Company for the year ended October 31, 2020. The interim results are not necessarily indicative of results for the full year. Certain reclassifications have been made to the fiscal year 2020 financial statements to conform to the fiscal year 2021 presentation. Equity Sponsor In June 2021, the Company completed a secondary offering (the “June 2021 Secondary Offering”) in which 5,500,000 shares of common stock were sold by certain selling security holders to the public at a price of $15.50 per share. The underwriters were also granted an option, which they exercised in full, to purchase up to an additional 825,000 shares of common stock from the selling security holders. Upon completion of the June 2021 Secondary Offering, AIP ceased to beneficially own a majority of the Company’s common stock. As a result, the Company is no longer a “controlled company” within the meaning of the corporate governance standards of the New York Stock Exchange, and the Company no longer relies on exemptions from corporate governance requirements that are available to controlled companies. The Company did not receive any proceeds from the June 2021 Secondary Offering. The Company incurred approximately $0.4 million in offering costs during the three months ended July 31, 2021, and these costs were included within selling, general and administrative expenses in the Company’s Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss). Related Party Transactions Certain production facilities and offices for two of the Company’s subsidiaries are leased from certain members of management. The Company did not incur any rent expense under these arrangements for the three months ended July 31, 2021. Rent expense under these arrangements totaled $0.1 million for the three months ended July 31, 2020. Rent expense under these arrangements totaled $0.1 million and $0.7 million for the nine months ended July 31, 2021, and July 31, 2020, respectively. Recent Accounting Pronouncements Accounting Pronouncement Recently Adopted The following accounting pronouncement did not have a material impact on the Company’s consolidated financial statements: • modified retrospective method of transition . The adoption did not have a material impact on the Company’s consolidated financial statements. Accounting Pronouncement - To Be Adopted • In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), “Simplifying the Accounting for Income Taxes”. The standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740 such as recognizing deferred taxes for equity investments, the incremental approach to performing intra-period tax allocation and calculating income taxes in interim periods. The standard also simplifies accounting for income taxes under U.S. GAAP by clarifying and amending existing guidance, including the recognition of deferred taxes for goodwill, the allocation of taxes to members of a consolidated group and requiring that an entity reflect the effect of enacted changes in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The Company will be required to adopt ASU 2019-12 as of November 1, 2021. Early adoption is permitted. The Company does not expect this to have a material impact on its consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Jul. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 2. Revenue Recognition Substantially all of the Company’s revenue is recognized from contracts with customers with product shipment destinations in the United States and Canada. The Company’s primary source of revenue is generated from the manufacture and sale of specialty vehicles through its direct sales force or dealer network. The Company also generates revenue through separate contracts that relate to the sale of aftermarket parts and services. Revenue is typically recognized at a point-in-time, when control is transferred, which generally occurs when the product has been shipped to the customer or when it has been picked-up from the Company’s manufacturing facilities. Periodically, certain customers request bill and hold transactions. In such cases, revenue is not recognized until after control has transferred which is generally when the customer has requested such transaction and has been notified that the product (i) has been completed according to customer specifications, (ii) has passed our quality control inspections, and (iii) has been separated from our inventory and is ready for physical transfer to the customer. Contract Assets and Contract Liabilities The Company is generally entitled to bill its customers upon satisfaction of its performance obligations, and payment is usually received shortly after billing. Payments for certain contracts are received in advance of satisfying the related performance obligations. Such payments are recorded as customer advances in the Company’s Condensed Unaudited Consolidated Balance Sheets. The corresponding performance obligations are generally satisfied within one year of the contract inception. During the three months ended July 31, 2021 and July 31, 2020, the Company recognized $32.4 million and $23.5 million, respectively, of revenue that was included in the customer advance balances of $170.1 million and $129.9 million as of October 31, 2020 and October 31, 2019, respectively. During the nine months ended July 31, 2021 and July 31, 2020, the Company recognized $117.5 million and $104.1 million, respectively, of revenue that was included in the customer advance balances of $170.1 million and $129.9 million as of October 31, 2020 and October 31, 2019, respectively. The Company’s payment terms do not include a significant financing component and the Company does not have significant contract assets. |
Leases
Leases | 9 Months Ended |
Jul. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 3. Leases During the three and nine months ended July 31, 2021, the Company recognized total operating lease costs of $2.4 million and $7.1 million, respectively, and paid cash of $2.8 million and $7.6 million, respectively, for amounts included in the measurement of lease liabilities. During the three and nine months ended July 31, 2020, the Company recognized total operating lease costs of $2.8 million and $7.6 million, respectively, and paid cash of $2.3 million and $6.9 million for amounts included in the measurement of lease liabilities. At July 31, 2021, future minimum operating lease payments due under ASC 842 are summarized by fiscal year in the table below: Remaining three months of fiscal year 2021 $ 2.2 2022 7.8 2023 5.0 2024 3.0 2025 1.1 Thereafter 2.4 Total undiscounted lease payments 21.5 Less: imputed interest (2.0 ) Total lease liabilities 19.5 Less: lease liabilities held for sale (1.8 ) Total lease liabilities excluding held for sale $ 17.7 As of July 31, 2021, the weighted average remaining lease term and the weighted average discount rate for operating leases was 4.2 years and 5.0%, respectively. As of July 31, 2020, the weighted average remaining lease term and the weighted average discount rate for operating leases was 4.7 years and 5.0%, respectively. |
Acquisition
Acquisition | 9 Months Ended |
Jul. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisition | Note 4. Acquisition Spartan Emergency Response On February 1, 2020, the Company acquired substantially all of the assets and liabilities of Spartan Emergency Response (“Spartan ER”), a leading designer, manufacturer and distributor of custom emergency response vehicles, cabs and chassis for the emergency response market, and its brands, from The Shyft Group (NASDAQ: SHYF). Spartan ER is reported as part of the Fire & Emergency segment. The acquisition increases the Company’s market share in several key product categories and provides access to several large new municipalities and regional markets. The initial purchase price for Spartan ER was $54.8 million of cash, which was funded through the Company’s 2017 ABL credit facility. The preliminary purchase price allocation, which was based on a $54.8 million purchase price, resulted in a gain of $11.9 million, which is included in the Company’s Condensed Unaudited Consolidated Statement of Operations for the three and nine months ended July 31, 2020. The initial purchase price was adjusted to $47.3 million in connection with the post close net working capital adjustments that were finalized in the fourth quarter of fiscal year 2020 and subsequent receipt of $7.5 million from the seller. These updates resulted in a decrease to the cumulative gain on acquisition of $3.3 million, from $11.9 million to $8.6 million. During the first quarter of fiscal year 2021, the purchase price allocation was updated to reflect immaterial measurement period adjustments made to inventories and warranty, and certain other assets acquired and liabilities assumed. These updates resulted in a decrease to the cumulative gain on acquisition of $0.4 million, from $8.6 million to $8.2 million, which is reflected in the final purchase price allocation shown in the table below. The measurement period adjustments did not have a material impact on the Company’s results of operations during that period. The following table summarizes the final fair values of the assets acquired and liabilities assumed for Spartan ER: Assets: Accounts receivable, net $ 22.9 Inventories, net 83.2 Other current assets 0.7 Property, plant and equipment 13.4 Right of use assets 6.0 Total assets acquired 126.2 Liabilities: Accounts payable 5.3 Customer advances 35.3 Accrued warranty 2.1 Other current liabilities 7.8 Short-term lease obligations 0.8 Deferred income taxes 2.7 Long-term lease obligations 5.4 Other long-term liabilities 11.3 Total liabilities assumed 70.7 Net assets acquired 55.5 Consideration paid 47.3 Gain on acquisition of business $ (8.2 ) |
Inventories
Inventories | 9 Months Ended |
Jul. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5. Inventories Inventories consisted of the following: July 31, 2021 October 31, 2020 Chassis $ 35.6 $ 61.1 Raw materials & parts 200.9 195.6 Work in process 240.6 230.3 Finished products 55.5 70.0 532.6 557.0 Less: reserves (12.9 ) (19.8 ) Total inventories, net $ 519.7 $ 537.2 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Jul. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 6. Property, Plant and Equipment Property, plant and equipment consisted of the following: July 31, 2021 October 31, 2020 Land & land improvements $ 19.0 $ 27.0 Buildings & improvements 103.7 103.9 Machinery & equipment 88.5 90.8 Rental & used vehicles 2.5 4.9 Computer hardware & software 58.3 51.9 Office furniture & fixtures 4.4 5.1 Construction in process 9.1 8.1 285.5 291.7 Less: accumulated depreciation (131.4 ) (123.3 ) Total property, plant and equipment, net $ 154.1 $ 168.4 Depreciation expense was $5.3 million and $6.2 million for the three months ended July 31, 2021, and July 31, 2020, respectively, and $16.8 million and $20.5 million for the nine months ended July 31, 2021, and July 31, 2020, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Jul. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 7. Goodwill and Intangible Assets The table below represents goodwill by segment: July 31, 2021 October 31, 2020 Fire & Emergency $ 88.6 $ 88.6 Commercial 26.2 26.2 Recreation 42.5 42.5 Total goodwill $ 157.3 $ 157.3 The change in the net carrying value amount of goodwill consisted of the following: Nine Months Ended July 31, 2021 2020 Balance at beginning of period $ 157.3 $ 159.8 Activity during the period: Divestitures — (2.5 ) Balance at end of period $ 157.3 $ 157.3 Intangible assets (excluding goodwill) consisted of the following: July 31, 2021 Weighted- Average Life Gross Accumulated Amortization Net Finite-lived intangible assets: Customer relationships 8.0 $ 66.2 $ (44.9 ) $ 21.3 Non-compete agreements 5.0 2.0 (2.0 ) — 68.2 (46.9 ) 21.3 Indefinite-lived trade names 107.4 — 107.4 Total intangible assets, net $ 175.6 $ (46.9 ) $ 128.7 October 31, 2020 Weighted- Average Life Gross Accumulated Amortization Net Finite-lived intangible assets: Customer relationships 8.0 $ 66.2 $ (37.8 ) $ 28.4 Non-compete agreements 5.0 2.0 (1.7 ) 0.3 Trade names 7.0 1.3 (1.3 ) — 69.5 (40.8 ) 28.7 Indefinite-lived trade names 107.4 — 107.4 Total intangible assets, net $ 176.9 $ (40.8 ) $ 136.1 Amortization expense was $2.3 million and $3.0 million for the three months ended July 31, 2021, and July 31, 2020, respectively, and $7.4 million and $10.4 million for the nine months ended July 31, 2021, and July 31, 2020, respectively. As of July 31, 2021, fully amortized intangible assets and the related accumulated amortization related to trade names were written off. |
Divestiture Activities
Divestiture Activities | 9 Months Ended |
Jul. 31, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Divestiture Activities | Note 8. Divestiture Activities In the first quarter of fiscal year 2020, the Company completed the sale of REV Coach. The Company received cash proceeds of $1.1 million in the first quarter of fiscal year 2020, and the remaining $0.9 million in the second quarter of fiscal year 2020. Effective May 8, 2020, and in connection with a strategic review of the product portfolio, the Company completed the sale of its shuttle bus businesses for $48.9 million in cash. As a result, the Company recorded a loss on sale of $9.3 million, which is included in the Company’s Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) for the nine months ended July 31, 2020. The Company used the proceeds from the disposition to reduce outstanding borrowings. The shuttle bus businesses were reported as part of the Commercial segment. In the first quarter of fiscal year 2021, in connection with a strategic review of the product portfolio, the Company made the decision to divest its REV Brazil business. The assets and liabilities to be disposed of in connection with this transaction met the held for sale criteria as of July 31, 2021. The carrying value of the net assets held for sale, inclusive of the cumulative translation adjustment balance attributable to this business, was greater than their fair value, less costs to sell, resulting in a loss of $2.8 million, which is included in the Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) for the nine months ended July 31, 2021. As of July 31, 2021, assets and liabilities held for sale consisted of the following balances related to the sale of REV Brazil: Property, plant and equipment, net—$0.8 million, Inventories, net—$2.7 million, Accounts receivable, net—$4.1 million, Accounts payable—$3.6 million and Other current and long-term liabilities—$2.5 million. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 9. Long-Term Debt The Company was obligated under the following debt instruments: July 31, 2021 October 31, 2020 2021 ABL facility $ 250.0 $ — 2017 ABL facility — 175.0 Term Loan, net of debt issuance costs ($0.0 and $1.7) — 167.2 250.0 342.2 Less: current maturities — (1.7 ) Long-term debt, less current maturities $ 250.0 $ 340.5 2021 ABL Facility On April 13, 2021, the Company entered into a $550.0 million revolving credit agreement (the “2021 ABL Facility” or “2021 ABL Agreement”) with a syndicate of lenders. The 2021 ABL Facility provides for revolving loans and letters of credit in an aggregate amount of up to $550.0 million. The total credit facility is subject to a $30.0 million sublimit for swing line loans and a $35.0 million sublimit for letters of credit (plus up to an additional $20.0 million of letters of credit at issuing bank’s discretion), along with certain borrowing base and other customary restrictions as defined in the 2021 ABL Agreement. The 2021 ABL Agreement allows for incremental facilities in an aggregate amount of up to $100.0 million, plus the excess, if any, of the borrowing base then in effect over total commitments then in effect. Any such incremental facilities are subject to receiving additional commitments from lenders and certain other customary conditions. The 2021 ABL Agreement serves as refinancing of indebtedness and terminates the Company’s 2017 ABL Facility and Term Loan. The Company repaid $303.4 million of existing principal on the 2017 ABL Facility and Term Loan in connection with this refinancing. The Company also paid $7.0 million of debt issuance costs and recognized a $1.4 million loss on early extinguishment of debt, the latter of which The 2021 ABL Facility matures on April 13, 2026. The Company may prepay principal, in whole or in part, at any time without penalty. All revolving loans under the 2021 ABL Facility bear interest at rates equal to, at the Company’s option, either a base rate plus an applicable margin, or a Eurodollar rate plus an applicable margin. Applicable interest rate margins are initially 0.75% for all base rate loans and 1.75% for all Eurodollar rate loans (with the Eurodollar rate having a floor of 0.25%), subject to adjustment based on the Company’s fixed charge coverage ratio in accordance with the 2021 ABL Agreement. Interest is payable quarterly for all base rate loans and is payable the last day of any interest period or every three months for all Eurodollar rate loans. The weighted-average interest rate on borrowings outstanding under the 2021 ABL Facility was 2.00% as of July 31, 2021 The lenders under the 2021 ABL Facility have a first priority security interest in substantially all personal property assets and certain real property assets of the Company. The 2021 ABL Facility’s borrowing base is comprised of eligible receivables and eligible inventory, plus a fixed asset sublimit of certain eligible real property and eligible equipment, which fixed asset sublimit reduces by quarterly amortization as specified in the 2021 ABL Agreement. The 2021 ABL Agreement contains customary representations and warranties, affirmative and negative covenants, subject in certain cases to customary limitations, exceptions and exclusions. The 2021 ABL Agreement also contains certain customary events of default. The occurrence of an event of default under the 2021 ABL Agreement could result in the termination of the commitments under the 2021 ABL Facility and the acceleration of all outstanding borrowings under it. The 2021 ABL Agreement requires the Company to maintain a minimum fixed charge coverage ratio of 1.10 to 1.00 during certain compliance periods as specified in the 2021 ABL Agreement. The Company was in compliance with all financial covenants under the 2021 ABL Agreement as of July 31, 2021. As of July 31, 2021, the Company’s availability under the 2021 ABL Facility was $276.8 million. The fair value of the 2021 ABL Facility approximated book value on July 31, 2021. 2017 ABL Facility The 2017 ABL Facility consisted of: (i) Revolving Loans, (ii) Swing Line Loans, and (iii) Letters of Credit, aggregating up to a combined maximum of $500.0 million. The total amount borrowed under the 2017 ABL Facility was subject to a $30.0 million sublimit for Swing Line loans and a $35.0 million sublimit for Letters of Credit, along with certain borrowing base and other customary restrictions as defined in the 2017 ABL Agreement. The 2017 ABL Facility was set to mature on April 25, 2022. In connection with the Company’s entry into the 2021 ABL Facility on April 13, 2021, the 2017 ABL Facility was fully prepaid as part of the refinancing. All related security interests were cancelled. The fair value of the 2017 ABL Facility approximated book value on October 31, 2020. Term Loan On April 29, 2020, the Company entered into a Fifth Amended and Restated $175.0 million term loan agreement (“Term Loan” and “Term Loan Agreement”), as Borrower with certain subsidiaries of the Company, acting as guarantors of debt. Principal could be prepaid at any time during the term of the Term Loan without penalty. The Term Loan agreement required quarterly payments of 0.25% of the original principal balance. The Term Loan was set to mature on April 25, 2022. In connection with the Company’s entry into the 2021 ABL Facility on April 13, 2021, the Term Loan was fully prepaid as part of the refinancing. All related security interests were cancelled. The fair value of the Term Loan approximated book value on October 31, 2020. |
Warranties
Warranties | 9 Months Ended |
Jul. 31, 2021 | |
Guarantees [Abstract] | |
Warranties | Note 10. Warranties The Company’s products generally carry explicit warranties that extend from several months to several years, based on terms that are generally accepted in the marketplace. Selected components (such as engines, transmissions, tires, etc.) included in the Company’s end products may include warranties from original equipment manufacturers (“OEM”). These OEM warranties are passed on to the end customer of the Company’s products, and the customer deals directly with the applicable OEM for any issues encountered on those components. Changes in the Company’s warranty liability consisted of the following: Nine Months Ended July 31, 2021 2020 Balance at beginning of period $ 37.0 $ 22.6 Warranty provisions 24.0 27.5 Settlements made (25.0 ) (25.8 ) Warranties for prior year acquisition 1.2 12.2 Divestiture adjustments — (0.7 ) Changes in liability of pre-existing warranties — (0.3 ) Balance at end of period $ 37.2 $ 35.5 Accrued warranty is classified in the Company’s consolidated balance sheets as follows: July 31, 2021 October 31, 2020 Current liabilities $ 22.2 $ 24.1 Other long-term liabilities 15.0 12.9 Total warranty liability $ 37.2 $ 37.0 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jul. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 11. Earnings Per Share Basic earnings per common share (“EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding. Diluted EPS is computed by dividing net income (loss) by the weighted-average number of common shares outstanding assuming dilution. The difference between basic EPS and diluted EPS is the result of the dilutive effect of outstanding stock options, performance stock units and restricted stock units. The table below reconciles basic weighted-average common shares outstanding to diluted weighted-average shares outstanding for the three and nine months ended July 31, 2021 and July 31, 2020: Three Months Ended July 31, Nine Months Ended July 31, 2021 2020 2021 2020 Basic weighted-average common shares outstanding 64,125,216 63,134,486 63,863,441 63,011,955 Dilutive stock options 40,467 — 79,135 — Dilutive restricted stock awards 657,931 — 465,503 — Dilutive restricted stock units 556,103 — 475,060 — Dilutive performance stock units 538,372 — 436,933 — Diluted weighted-average common shares outstanding 65,918,089 63,134,486 65,320,072 63,011,955 The table below represents exclusions from the calculation of weighted-average shares outstanding assuming dilution due to the anti-dilutive effect of the common stock equivalents for the three and nine months ended July 31, 2021 and July 31, 2020: Three Months Ended July 31, Nine Months Ended July 31, 2021 2020 2021 2020 Anti-dilutive stock options — 627,600 — 779,600 Anti-dilutive restricted stock awards — — 63,615 — Anti-dilutive restricted stock units 9,808 2,865,583 177,884 3,546,206 Anti-dilutive performance stock units — — — — Anti-dilutive common stock equivalents 9,808 3,493,183 241,499 4,325,806 |
Income Taxes
Income Taxes | 9 Months Ended |
Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12. Income Taxes For interim financial reporting, the Company estimates its annual effective tax rate based on the projected income for its entire fiscal year and records a provision (benefit) for income taxes on a quarterly basis based on the estimated annual effective income tax rate, adjusted for any discrete tax items. The Company recorded income tax expense of $2.4 million for the three months ended July 31, 2021, or 9.1% of pre-tax income, compared to $0.5 million of benefit, or 11.6% of pre-tax loss, for the three months ended July 31, 2020. Results for the three months ended July 31, 2021 were favorably impacted by $4.0 million of net discrete tax benefits primarily related to net operating loss carrybacks allowable under the CARES Act. Results for the three months ended July 31, 2020 were unfavorably impacted by $0.8 million of net discrete tax expense primarily related to stock-based compensation tax deductions. The Company recorded income tax expense of $9.6 million for the nine months ended July 31, 2021, or 17.8% of pre-tax income, compared to $13.2 million of benefit, or 39.4% of pre-tax loss, for the nine months ended July 31, 2020. Results for the nine months ended July 31, 2021 were favorably impacted by $5.2 million of net discrete tax benefits related primarily to net operating loss carrybacks allowable under the CARES Act and recognition of deferred taxes on assets classified as held for sale. Results for the nine months ended July 31, 2020 were favorably impacted by $4.6 million of net discrete tax benefits primarily related to net operating loss carrybacks allowable under the CARES Act and the nontaxable gain on the acquisition of Spartan ER. The Company periodically evaluates its valuation allowance requirements as facts and circumstances change and may adjust its deferred tax asset valuation allowances accordingly. It is reasonably possible that the Company will either add to or reverse a portion of its existing deferred tax asset valuation allowances in the future. Such changes in the deferred tax asset valuation allowances will be reflected in the current operations through the Company’s effective income tax rate. The Company’s liability for unrecognized tax benefits, including interest and penalties, was $4.2 million as of July 31, 2021 and $3.1 million as of October 31, 2020. The unrecognized tax benefits are presented in other long-term liabilities in the Company’s Condensed Unaudited Consolidated Balance Sheets for the period ended July 31, 2021. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in its Condensed Unaudited Consolidated Statement of Operations and Comprehensive Income (Loss). The Company regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves. As of July 31, 2021, the Company believes that it is more likely than not that the tax positions it has taken will be sustained upon the resolution of its audits resulting in no material impact on its consolidated financial position and the results of operations and cash flows. However, the final determination with respect to any tax audits, and any related litigation, could be materially different from the Company’s estimates and/or from its historical income tax provisions and income tax liabilities and could have a material effect on operating results and/or cash flows in the periods for which that determination is made. In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties, and/or interest assessments related to income tax examinations. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jul. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13. Commitments and Contingencies Personal Injury Actions and Other retention for which the Company is responsible . Management, however, believes that any losses will not have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows . Market Risks July 31, 2021 October 31, 2020 Performance, bid and specialty bonds $ 347.7 $ 328.6 Open standby letters of credit 23.1 11.0 Total $ 370.8 $ 339.6 Chassis Contingent Liabilities Repurchase Commitments Guarantee Arrangements Other Matters A consolidated federal putative securities class action and a consolidated state putative securities class action are pending against the Company and certain of its officers and directors. These actions collectively purport to assert claims on behalf of putative classes of purchasers of the Company’s common stock in or traceable to its January 2017 IPO, purchasers in its secondary offering of common stock in October 2017, and purchasers from October 10, 2017 through June 7, 2018. The state action also names certain of the underwriters for the Company’s IPO or secondary offering as defendants. The federal and state courts each consolidated multiple separate actions pending before them, the first of which was filed on June 8, 2018. The actions have alleged certain violations of the Securities Act of 1933 and, for the federal action, the Securities Exchange Act of 1934. Collectively, the actions seek certification of the putative classes asserted and compensatory damages and attorneys’ fees and costs. The consolidated state action is currently stayed in favor of the consolidated federal action. On August 24, 2021, the court preliminarily approved the class action settlement proposed by the parties, and set the hearing for final approval on December 9, 2021. The settlement payment is expected to be fully covered by the Company's insurers . The payable under the proposed settlement and the related insurance proceeds are recorded in other current liabilities and other current assets, respectively, in the Company’s Condensed Unaudited Consolidated Balance Sheets as of July 31, 2021 . Two purported derivative actions, which have since been consolidated, were also filed in 2019 against the Company’s directors (with the Company as a nominal defendant), premised on allegations similar to those asserted in the consolidated federal securities litigation. The parties to the consolidated derivative actions reached a settlement in principle on all issues other than plaintiffs’ counsel’s attorneys’ fees on or about February 17, 2021. Additional lawsuits may be filed and, at this time, should the settlements referenced above not become final, the Company is unable to predict the outcome of the lawsuits, the possible loss or range of loss, if any, associated with the resolution of the lawsuits, or any potential effect that it may have on the Company or its operations. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Jul. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 14. Business Segment Information The Company is organized into three reportable segments based on management’s process for making operating decisions, allocating capital and measuring performance, and based on the similarity of products, customers served, common use of facilities, and economic characteristics. The Company’s segments are as follows: Fire & Emergency Commercial Recreation For purposes of measuring financial performance of its business segments, the Company does not allocate to individual business segments costs or items that are of a corporate nature. The caption “Corporate, Other & Elims” includes corporate office expenses, results of insignificant operations, intersegment eliminations and income and expense not allocated to reportable segments. Total assets of the business segments exclude general corporate assets, which principally consist of cash and cash equivalents, certain property, plant and equipment and certain other assets pertaining to corporate and other centralized activities. Intersegment sales generally include amounts invoiced by a segment for work performed for another segment. Amounts are based on actual work performed and agreed-upon pricing which is intended to be reflective of the contribution made by the supplying business segment. All intersegment transactions have been eliminated in consolidation. Selected financial information of the Company’s segments is as follows: Three Months Ended July 31, 2021 Fire & Emergency Commercial Recreation Corporate, Other & Elims Consolidated Net sales $ 269.5 $ 111.3 $ 212.5 $ — $ 593.3 Depreciation and amortization $ 2.9 $ 0.7 $ 3.5 $ 0.5 $ 7.6 Capital expenditures $ 2.8 $ — $ 1.6 $ 0.9 $ 5.3 Total assets $ 676.7 $ 194.0 $ 314.0 $ 68.2 $ 1,252.9 Adjusted EBITDA $ 15.8 $ 9.7 $ 24.1 $ (8.0 ) Three Months Ended July 31, 2020 Fire & Emergency Commercial Recreation Corporate, Other & Elims Consolidated Net sales $ 306.7 $ 92.4 $ 182.7 $ 0.4 $ 582.2 Depreciation and amortization $ 3.1 $ 1.1 $ 3.4 $ 1.6 $ 9.2 Capital expenditures $ 1.0 $ 0.3 $ 0.2 $ 0.5 $ 2.0 Total assets $ 766.9 $ 205.9 $ 309.0 $ 127.6 $ 1,409.4 Adjusted EBITDA $ 12.9 $ 10.3 $ 12.1 $ (13.9 ) Nine Months Ended July 31, 2021 Fire & Emergency Commercial Recreation Corporate, Other & Elims Consolidated Net sales $ 857.7 $ 292.8 $ 640.5 $ (0.1 ) $ 1,790.9 Depreciation and amortization $ 9.0 $ 2.2 $ 10.7 $ 2.3 $ 24.2 Capital expenditures $ 7.7 $ 1.1 $ 2.9 $ 2.2 $ 13.9 Total assets $ 676.7 $ 194.0 $ 314.0 $ 68.2 $ 1,252.9 Adjusted EBITDA $ 47.6 $ 25.1 $ 64.3 $ (26.6 ) Nine Months Ended July 31, 2020 Fire & Emergency Commercial Recreation Corporate, Other & Elims Consolidated Net sales $ 802.4 $ 393.8 $ 463.6 $ 1.5 $ 1,661.3 Depreciation and amortization $ 10.2 $ 4.7 $ 10.2 $ 5.8 $ 30.9 Capital expenditures $ 5.0 $ 1.7 $ 1.6 $ 1.4 $ 9.7 Total assets $ 766.9 $ 205.9 $ 309.0 $ 127.6 $ 1,409.4 Adjusted EBITDA $ 25.1 $ 28.1 $ 17.9 $ (31.5 ) In considering the financial performance of the business, the chief operating decision maker analyzes the primary financial performance measure of Adjusted EBITDA. Adjusted EBITDA is defined as net income for the relevant period before depreciation and amortization, interest expense, income taxes and loss on early extinguishment of debt, as adjusted for items management believes are not indicative of the Company’s ongoing operating performance. Adjusted EBITDA is not a measure defined by U.S. GAAP but is computed using amounts that are determined in accordance with U.S. GAAP. A reconciliation of this performance measure to net income (loss) is included below. The Company believes Adjusted EBITDA is useful to investors and used by management for measuring profitability because the measure excludes the impact of certain items which management believes have less bearing on the Company’s core operating performance, and allows for a more meaningful comparison of operating fundamentals between companies within its industries by eliminating the impact of capital structure and taxation differences between the companies. Additionally, Adjusted EBITDA is used by management to measure and report the Company’s financial performance to the Company’s Board of Directors, assists in providing a meaningful analysis of the Company’s operating performance and is used as a measurement in incentive compensation for management . Provided below is a reconciliation of segment Adjusted EBITDA to net income (loss): Three Months Ended July 31, Nine Months Ended July 31, 2021 2020 2021 2020 Fire & Emergency Adjusted EBITDA $ 15.8 $ 12.9 $ 47.6 $ 25.1 Commercial Adjusted EBITDA 9.7 10.3 25.1 28.1 Recreation Adjusted EBITDA 24.1 12.1 64.3 17.9 Corporate and Other Adjusted EBITDA (8.0 ) (13.9 ) (26.6 ) (31.5 ) Depreciation and amortization (7.6 ) (9.2 ) (24.2 ) (30.9 ) Interest expense, net (3.4 ) (5.7 ) (14.4 ) (20.3 ) (Provision) benefit for income taxes (2.4 ) 0.5 (9.6 ) 13.2 Transaction expenses (0.5 ) (0.6 ) (3.2 ) (2.6 ) Sponsor expense reimbursement — (0.1 ) (0.2 ) (0.2 ) Restructuring costs — (2.5 ) (1.0 ) (6.0 ) Restructuring related charges — (0.7 ) (0.3 ) (3.9 ) Stock-based compensation expense (1.9 ) (1.8 ) (5.5 ) (7.2 ) Legal matters (2.8 ) (0.1 ) (3.1 ) (1.6 ) Loss on early extinguishment of debt — — (1.4 ) — Net gain (loss) on sale of assets and business held for sale 1.0 — (1.7 ) — Loss on sale of business — (0.5 ) — (9.3 ) (Loss) gain on acquisition of business — — (0.4 ) 11.9 Impairment charges — (3.7 ) — (3.7 ) (Losses) earnings attributable to assets held for sale (0.3 ) (0.6 ) (1.0 ) 0.8 Deferred purchase price payment — — — (0.1 ) Net income (loss) $ 23.7 $ (3.6 ) $ 44.4 $ (20.3 ) |
Subsequent Event
Subsequent Event | 9 Months Ended |
Jul. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 15. Subsequent Event Sale of REV Brazil In the fourth quarter of fiscal year 2021, the Company completed the sale of REV Brazil for $4.0 million of consideration. During the third quarter of fiscal year 2021, the Company received $2.0 million of cash which is included in Other investing activities in the Condensed Unaudited Consolidated Statement of Cash Flows. The Company expects to receive the remaining $2.0 million of consideration over the next 24 months. Quarterly Dividend On September 2, 2021, the Company’s Board of Directors declared a quarterly cash dividend 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, payable on October 15, 2021 to shareholders of record on September 30, 2021. Share Repurchase Program On September 2, 2021, the Company’s Board of Directors approved the authorization of a new share repurchase program that allows the repurchase of up to $150.0 million of the Company’s outstanding common stock, effective immediately. The share repurchase authorization expires in 24 months and gives management the flexibility to determine conditions under which shares may be purchased. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncement Recently Adopted The following accounting pronouncement did not have a material impact on the Company’s consolidated financial statements: • modified retrospective method of transition . The adoption did not have a material impact on the Company’s consolidated financial statements. Accounting Pronouncement - To Be Adopted • In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), “Simplifying the Accounting for Income Taxes”. The standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740 such as recognizing deferred taxes for equity investments, the incremental approach to performing intra-period tax allocation and calculating income taxes in interim periods. The standard also simplifies accounting for income taxes under U.S. GAAP by clarifying and amending existing guidance, including the recognition of deferred taxes for goodwill, the allocation of taxes to members of a consolidated group and requiring that an entity reflect the effect of enacted changes in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The Company will be required to adopt ASU 2019-12 as of November 1, 2021. Early adoption is permitted. The Company does not expect this to have a material impact on its consolidated financial statements. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Leases [Abstract] | |
Schedule of Future Minimum Operating Lease Payments Due Under ASC 842 | At July 31, 2021, future minimum operating lease payments due under ASC 842 are summarized by fiscal year in the table below: Remaining three months of fiscal year 2021 $ 2.2 2022 7.8 2023 5.0 2024 3.0 2025 1.1 Thereafter 2.4 Total undiscounted lease payments 21.5 Less: imputed interest (2.0 ) Total lease liabilities 19.5 Less: lease liabilities held for sale (1.8 ) Total lease liabilities excluding held for sale $ 17.7 |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Final Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the final fair values of the assets acquired and liabilities assumed for Spartan ER: Assets: Accounts receivable, net $ 22.9 Inventories, net 83.2 Other current assets 0.7 Property, plant and equipment 13.4 Right of use assets 6.0 Total assets acquired 126.2 Liabilities: Accounts payable 5.3 Customer advances 35.3 Accrued warranty 2.1 Other current liabilities 7.8 Short-term lease obligations 0.8 Deferred income taxes 2.7 Long-term lease obligations 5.4 Other long-term liabilities 11.3 Total liabilities assumed 70.7 Net assets acquired 55.5 Consideration paid 47.3 Gain on acquisition of business $ (8.2 ) |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: July 31, 2021 October 31, 2020 Chassis $ 35.6 $ 61.1 Raw materials & parts 200.9 195.6 Work in process 240.6 230.3 Finished products 55.5 70.0 532.6 557.0 Less: reserves (12.9 ) (19.8 ) Total inventories, net $ 519.7 $ 537.2 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment consisted of the following: July 31, 2021 October 31, 2020 Land & land improvements $ 19.0 $ 27.0 Buildings & improvements 103.7 103.9 Machinery & equipment 88.5 90.8 Rental & used vehicles 2.5 4.9 Computer hardware & software 58.3 51.9 Office furniture & fixtures 4.4 5.1 Construction in process 9.1 8.1 285.5 291.7 Less: accumulated depreciation (131.4 ) (123.3 ) Total property, plant and equipment, net $ 154.1 $ 168.4 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill by Segment and Change in Net Carrying Value of Goodwill | The table below represents goodwill by segment: July 31, 2021 October 31, 2020 Fire & Emergency $ 88.6 $ 88.6 Commercial 26.2 26.2 Recreation 42.5 42.5 Total goodwill $ 157.3 $ 157.3 The change in the net carrying value amount of goodwill consisted of the following: Nine Months Ended July 31, 2021 2020 Balance at beginning of period $ 157.3 $ 159.8 Activity during the period: Divestitures — (2.5 ) Balance at end of period $ 157.3 $ 157.3 |
Summary of Intangible Assets Excluding Goodwill | Intangible assets (excluding goodwill) consisted of the following: July 31, 2021 Weighted- Average Life Gross Accumulated Amortization Net Finite-lived intangible assets: Customer relationships 8.0 $ 66.2 $ (44.9 ) $ 21.3 Non-compete agreements 5.0 2.0 (2.0 ) — 68.2 (46.9 ) 21.3 Indefinite-lived trade names 107.4 — 107.4 Total intangible assets, net $ 175.6 $ (46.9 ) $ 128.7 October 31, 2020 Weighted- Average Life Gross Accumulated Amortization Net Finite-lived intangible assets: Customer relationships 8.0 $ 66.2 $ (37.8 ) $ 28.4 Non-compete agreements 5.0 2.0 (1.7 ) 0.3 Trade names 7.0 1.3 (1.3 ) — 69.5 (40.8 ) 28.7 Indefinite-lived trade names 107.4 — 107.4 Total intangible assets, net $ 176.9 $ (40.8 ) $ 136.1 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | The Company was obligated under the following debt instruments: July 31, 2021 October 31, 2020 2021 ABL facility $ 250.0 $ — 2017 ABL facility — 175.0 Term Loan, net of debt issuance costs ($0.0 and $1.7) — 167.2 250.0 342.2 Less: current maturities — (1.7 ) Long-term debt, less current maturities $ 250.0 $ 340.5 |
Warranties (Tables)
Warranties (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Guarantees [Abstract] | |
Schedule of Changes in Warranty Liability | Changes in the Company’s warranty liability consisted of the following: Nine Months Ended July 31, 2021 2020 Balance at beginning of period $ 37.0 $ 22.6 Warranty provisions 24.0 27.5 Settlements made (25.0 ) (25.8 ) Warranties for prior year acquisition 1.2 12.2 Divestiture adjustments — (0.7 ) Changes in liability of pre-existing warranties — (0.3 ) Balance at end of period $ 37.2 $ 35.5 |
Accrued Warranty Classified Consolidated Balance Sheets | Accrued warranty is classified in the Company’s consolidated balance sheets as follows: July 31, 2021 October 31, 2020 Current liabilities $ 22.2 $ 24.1 Other long-term liabilities 15.0 12.9 Total warranty liability $ 37.2 $ 37.0 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic Weighted-Average Common Shares Outstanding to Diluted Weighted-Average Shares Outstanding | The table below reconciles basic weighted-average common shares outstanding to diluted weighted-average shares outstanding for the three and nine months ended July 31, 2021 and July 31, 2020: Three Months Ended July 31, Nine Months Ended July 31, 2021 2020 2021 2020 Basic weighted-average common shares outstanding 64,125,216 63,134,486 63,863,441 63,011,955 Dilutive stock options 40,467 — 79,135 — Dilutive restricted stock awards 657,931 — 465,503 — Dilutive restricted stock units 556,103 — 475,060 — Dilutive performance stock units 538,372 — 436,933 — Diluted weighted-average common shares outstanding 65,918,089 63,134,486 65,320,072 63,011,955 |
Exclusions from Calculation of Weighted-Average Shares Outstanding Assuming Dilution Due to Anti-Dilutive Effect of Common Stock Equivalents | The table below represents exclusions from the calculation of weighted-average shares outstanding assuming dilution due to the anti-dilutive effect of the common stock equivalents for the three and nine months ended July 31, 2021 and July 31, 2020: Three Months Ended July 31, Nine Months Ended July 31, 2021 2020 2021 2020 Anti-dilutive stock options — 627,600 — 779,600 Anti-dilutive restricted stock awards — — 63,615 — Anti-dilutive restricted stock units 9,808 2,865,583 177,884 3,546,206 Anti-dilutive performance stock units — — — — Anti-dilutive common stock equivalents 9,808 3,493,183 241,499 4,325,806 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Contingent Liabilities | The Company is contingently liable under bid, performance and specialty bonds and has open standby letters of credit issued by the Company’s banks in favor of third parties as follows: July 31, 2021 October 31, 2020 Performance, bid and specialty bonds $ 347.7 $ 328.6 Open standby letters of credit 23.1 11.0 Total $ 370.8 $ 339.6 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Segment Reporting [Abstract] | |
Selected Financial Information of Segments | Selected financial information of the Company’s segments is as follows: Three Months Ended July 31, 2021 Fire & Emergency Commercial Recreation Corporate, Other & Elims Consolidated Net sales $ 269.5 $ 111.3 $ 212.5 $ — $ 593.3 Depreciation and amortization $ 2.9 $ 0.7 $ 3.5 $ 0.5 $ 7.6 Capital expenditures $ 2.8 $ — $ 1.6 $ 0.9 $ 5.3 Total assets $ 676.7 $ 194.0 $ 314.0 $ 68.2 $ 1,252.9 Adjusted EBITDA $ 15.8 $ 9.7 $ 24.1 $ (8.0 ) Three Months Ended July 31, 2020 Fire & Emergency Commercial Recreation Corporate, Other & Elims Consolidated Net sales $ 306.7 $ 92.4 $ 182.7 $ 0.4 $ 582.2 Depreciation and amortization $ 3.1 $ 1.1 $ 3.4 $ 1.6 $ 9.2 Capital expenditures $ 1.0 $ 0.3 $ 0.2 $ 0.5 $ 2.0 Total assets $ 766.9 $ 205.9 $ 309.0 $ 127.6 $ 1,409.4 Adjusted EBITDA $ 12.9 $ 10.3 $ 12.1 $ (13.9 ) Nine Months Ended July 31, 2021 Fire & Emergency Commercial Recreation Corporate, Other & Elims Consolidated Net sales $ 857.7 $ 292.8 $ 640.5 $ (0.1 ) $ 1,790.9 Depreciation and amortization $ 9.0 $ 2.2 $ 10.7 $ 2.3 $ 24.2 Capital expenditures $ 7.7 $ 1.1 $ 2.9 $ 2.2 $ 13.9 Total assets $ 676.7 $ 194.0 $ 314.0 $ 68.2 $ 1,252.9 Adjusted EBITDA $ 47.6 $ 25.1 $ 64.3 $ (26.6 ) Nine Months Ended July 31, 2020 Fire & Emergency Commercial Recreation Corporate, Other & Elims Consolidated Net sales $ 802.4 $ 393.8 $ 463.6 $ 1.5 $ 1,661.3 Depreciation and amortization $ 10.2 $ 4.7 $ 10.2 $ 5.8 $ 30.9 Capital expenditures $ 5.0 $ 1.7 $ 1.6 $ 1.4 $ 9.7 Total assets $ 766.9 $ 205.9 $ 309.0 $ 127.6 $ 1,409.4 Adjusted EBITDA $ 25.1 $ 28.1 $ 17.9 $ (31.5 ) |
Reconciliation of Segment Adjusted EBITDA to Net (Loss) Income | Provided below is a reconciliation of segment Adjusted EBITDA to net income (loss): Three Months Ended July 31, Nine Months Ended July 31, 2021 2020 2021 2020 Fire & Emergency Adjusted EBITDA $ 15.8 $ 12.9 $ 47.6 $ 25.1 Commercial Adjusted EBITDA 9.7 10.3 25.1 28.1 Recreation Adjusted EBITDA 24.1 12.1 64.3 17.9 Corporate and Other Adjusted EBITDA (8.0 ) (13.9 ) (26.6 ) (31.5 ) Depreciation and amortization (7.6 ) (9.2 ) (24.2 ) (30.9 ) Interest expense, net (3.4 ) (5.7 ) (14.4 ) (20.3 ) (Provision) benefit for income taxes (2.4 ) 0.5 (9.6 ) 13.2 Transaction expenses (0.5 ) (0.6 ) (3.2 ) (2.6 ) Sponsor expense reimbursement — (0.1 ) (0.2 ) (0.2 ) Restructuring costs — (2.5 ) (1.0 ) (6.0 ) Restructuring related charges — (0.7 ) (0.3 ) (3.9 ) Stock-based compensation expense (1.9 ) (1.8 ) (5.5 ) (7.2 ) Legal matters (2.8 ) (0.1 ) (3.1 ) (1.6 ) Loss on early extinguishment of debt — — (1.4 ) — Net gain (loss) on sale of assets and business held for sale 1.0 — (1.7 ) — Loss on sale of business — (0.5 ) — (9.3 ) (Loss) gain on acquisition of business — — (0.4 ) 11.9 Impairment charges — (3.7 ) — (3.7 ) (Losses) earnings attributable to assets held for sale (0.3 ) (0.6 ) (1.0 ) 0.8 Deferred purchase price payment — — — (0.1 ) Net income (loss) $ 23.7 $ (3.6 ) $ 44.4 $ (20.3 ) |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jul. 31, 2021 | Jun. 30, 2021 | Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Stock issued during period shares | 5,500,000 | |||||
Shares offering, price per share | $ 15.50 | |||||
Proceeds from public offering | $ 0 | |||||
Primary Equity Holder [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Selling, general and administrative expenses charged by primary equity holder | 0 | $ 0.1 | $ 0.2 | $ 0.2 | ||
Management [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Rent expense | 0 | $ 0.1 | 0.1 | $ 0.7 | ||
Selling, General and Administrative Expenses [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Offering cost | $ 0.4 | $ 0.4 | $ 0.4 | |||
Over-Allotment Option [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Stock issued during period shares | 825,000 | |||||
American Industrial Partners [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Equity interest held by operating partnership, voting equity | 42.60% |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | Oct. 31, 2020 | Oct. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | ||||||
Revenue recognized included in customer advances | $ 32.4 | $ 23.5 | $ 117.5 | $ 104.1 | $ 170.1 | $ 129.9 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Leases [Abstract] | ||||
Operating Lease, Cost | $ 2.4 | $ 2.8 | $ 7.1 | $ 7.6 |
Operating Lease, Payments | $ 2.8 | $ 2.3 | $ 7.6 | $ 6.9 |
Weighted average remaining lease term for operating leases | 4 years 2 months 12 days | 4 years 8 months 12 days | 4 years 2 months 12 days | 4 years 8 months 12 days |
Weighted average discount rate for operating leases | 5.00% | 5.00% | 5.00% | 5.00% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Operating Lease Payments Due Under ASC 842 (Detail) $ in Millions | Jul. 31, 2021USD ($) |
Leases [Abstract] | |
Remaining three months of fiscal year 2021 | $ 2.2 |
2022 | 7.8 |
2023 | 5 |
2024 | 3 |
2025 | 1.1 |
Thereafter | 2.4 |
Total undiscounted lease payments | 21.5 |
Less: imputed interest | (2) |
Total lease liabilities | 19.5 |
Less: lease liabilities held for sale | (1.8) |
Total lease liabilities excluding held for sale | $ 17.7 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - Spartan Emergency Response [Member] - USD ($) $ in Millions | Feb. 01, 2020 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 |
Business Acquisition [Line Items] | ||||||
Business acquisition, purchase price | $ 54.8 | $ 54.8 | $ 54.8 | |||
Gain on acquisition of business | 8.2 | $ 8.2 | $ 8.6 | $ 11.9 | $ 8.6 | $ 11.9 |
Adjusted purchase price consideration | $ 47.3 | 47.3 | ||||
Cash acquired from acquisition | $ 7.5 | |||||
Business combination bargain purchase gain recognized decrease amount | $ 0.4 | $ 3.3 |
Acquisition - Schedule of Final
Acquisition - Schedule of Final Fair Values of Assets Acquired and Liabilities Assumed (Detail) - Spartan Emergency Response [Member] - USD ($) $ in Millions | Feb. 01, 2020 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 |
Assets: | ||||||
Accounts receivable, net | $ 22.9 | |||||
Inventories, net | 83.2 | |||||
Other current assets | 0.7 | |||||
Property, plant and equipment | 13.4 | |||||
Right of use assets | 6 | |||||
Total assets acquired | 126.2 | |||||
Liabilities: | ||||||
Accounts payable | 5.3 | |||||
Customer advances | 35.3 | |||||
Accrued warranty | 2.1 | |||||
Other current liabilities | 7.8 | |||||
Short-term lease obligations | 0.8 | |||||
Deferred income taxes | 2.7 | |||||
Long-term lease obligations | 5.4 | |||||
Other long-term liabilities | 11.3 | |||||
Total liabilities assumed | 70.7 | |||||
Net assets acquired | 55.5 | |||||
Consideration paid | 47.3 | $ 47.3 | ||||
Gain on acquisition of business | $ (8.2) | $ (8.2) | $ (8.6) | $ (11.9) | $ (8.6) | $ (11.9) |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Jul. 31, 2021 | Oct. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Chassis | $ 35.6 | $ 61.1 |
Raw materials & parts | 200.9 | 195.6 |
Work in process | 240.6 | 230.3 |
Finished products | 55.5 | 70 |
Inventory, Gross, Total | 532.6 | 557 |
Less: reserves | (12.9) | (19.8) |
Total inventories, net | $ 519.7 | $ 537.2 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Jul. 31, 2021 | Oct. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 285.5 | $ 291.7 |
Less: accumulated depreciation | (131.4) | (123.3) |
Total property, plant and equipment, net | 154.1 | 168.4 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 19 | 27 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 103.7 | 103.9 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 88.5 | 90.8 |
Rental and Used Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2.5 | 4.9 |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 58.3 | 51.9 |
Office Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4.4 | 5.1 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 9.1 | $ 8.1 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation expense | $ 5.3 | $ 6.2 | $ 16.8 | $ 20.5 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Goodwill by Segment (Detail) - USD ($) $ in Millions | Jul. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Oct. 31, 2019 |
Goodwill [Line Items] | ||||
Goodwill | $ 157.3 | $ 157.3 | $ 157.3 | $ 159.8 |
Fire & Emergency [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | 88.6 | 88.6 | ||
Commercial [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | 26.2 | 26.2 | ||
Recreation [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 42.5 | $ 42.5 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Change in Net Carrying Value of Goodwill (Detail) $ in Millions | 9 Months Ended |
Jul. 31, 2020USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Balance at beginning of period | $ 159.8 |
Divestitures | (2.5) |
Balance at end of period | $ 157.3 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Intangible Assets Excluding Goodwill (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Jul. 31, 2021 | Oct. 31, 2020 | |
Intangible Assets Excluding Goodwill [Line Items] | ||
Finite-lived intangible assets, gross | $ 68.2 | $ 69.5 |
Finite-lived intangible assets, accumulated amortization | (46.9) | (40.8) |
Finite-lived intangible assets, net | 21.3 | 28.7 |
Indefinite-lived trade names | 107.4 | 107.4 |
Total intangible assets, gross | 175.6 | 176.9 |
Total intangible assets, net | $ 128.7 | $ 136.1 |
Customer Relationships [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Finite-lived intangible assets, Weighted-Average Life | 8 years | 8 years |
Finite-lived intangible assets, gross | $ 66.2 | $ 66.2 |
Finite-lived intangible assets, accumulated amortization | (44.9) | (37.8) |
Finite-lived intangible assets, net | $ 21.3 | $ 28.4 |
Non-compete Agreements [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Finite-lived intangible assets, Weighted-Average Life | 5 years | 5 years |
Finite-lived intangible assets, gross | $ 2 | $ 2 |
Finite-lived intangible assets, accumulated amortization | $ (2) | (1.7) |
Finite-lived intangible assets, net | $ 0.3 | |
Trade Names [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Finite-lived intangible assets, Weighted-Average Life | 7 years | |
Finite-lived intangible assets, gross | $ 1.3 | |
Finite-lived intangible assets, accumulated amortization | $ (1.3) |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 2.3 | $ 3 | $ 7.4 | $ 10.4 |
Divestiture Activities - Additi
Divestiture Activities - Additional Information (Detail) - USD ($) $ in Millions | May 08, 2020 | Jul. 31, 2021 | Jan. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | Apr. 30, 2020 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Net cash proceeds from sale of business | $ 50.9 | |||||
Gain (loss) on sale of business | $ 1 | $ (2.8) | ||||
Shuttle Bus Businesses [Member] | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Net cash proceeds from sale of business | $ 48.9 | |||||
Gain (loss) on sale of business | $ 9.3 | |||||
REV Coach Segment [Member] | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Net cash proceeds from sale of business | $ 1.1 | |||||
Expected proceeds to be received from divestiture of businesses next three months | $ 0.9 | |||||
REV Brazil Segment [Member] | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Property, plant and equipment, net | 0.8 | 0.8 | ||||
Inventories, net | 2.7 | 2.7 | ||||
Accounts receivable, net | 4.1 | 4.1 | ||||
Accounts payable | 3.6 | 3.6 | ||||
Other current and long-term liabilities | $ 2.5 | $ 2.5 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Millions | Jul. 31, 2021 | Oct. 31, 2020 |
Debt Instrument [Line Items] | ||
Term Loan, net of debt issuance costs ($0.0 and $1.7) | $ 167.2 | |
Long term debt including current maturities | $ 250 | 342.2 |
Less: current maturities | 0 | (1.7) |
Long-term debt, less current maturities | 250 | 340.5 |
2021 Asset Based Lending Facility [Member] | ||
Debt Instrument [Line Items] | ||
ABL facility | $ 250 | |
2017 Asset Based Lending Facility [Member] | ||
Debt Instrument [Line Items] | ||
ABL facility | $ 175 |
Long-Term Debt - Summary of L_2
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions | Jul. 31, 2021 | Oct. 31, 2020 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | $ 0 | $ 1.7 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) $ in Millions | Jul. 31, 2021 | Apr. 13, 2021 | Jul. 31, 2021 | Jul. 31, 2020 | Oct. 31, 2020 | Apr. 29, 2020 |
Debt Instrument [Line Items] | ||||||
Repayments of long term debt | $ 303.4 | $ 2.9 | ||||
Losses on extinguishment of debt | $ (1.4) | |||||
2021 Asset Based Lending Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 550 | |||||
Incremental borrowing capacity amount | 100 | |||||
Debt issuance costs | 7 | |||||
Losses on extinguishment of debt | 1.4 | |||||
Debt instrument maturity date | Apr. 13, 2026 | |||||
Available current borrowing capacity | $ 276.8 | $ 276.8 | ||||
2021 Asset Based Lending Facility [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument applicable interest rate margins | 0.75% | |||||
2021 Asset Based Lending Facility [Member] | Eurodollar [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument applicable interest rate margins | 1.75% | |||||
Required annual payment percentage | 0.25% | |||||
2021 Asset Based Lending Facility [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Additional borrowing capacity | $ 20 | |||||
Fixed charge coverage ratio | 110.00% | |||||
2021 Asset Based Lending Facility [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Fixed charge coverage ratio | 100.00% | |||||
2021 Asset Based Lending Facility [Member] | Letter of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 35 | |||||
2021 Asset Based Lending Facility [Member] | Letter of Credit [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 550 | |||||
2021 Asset Based Lending Facility [Member] | Swing Lines Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 30 | |||||
2017 Asset Based Lending Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of long term debt | $ 303.4 | |||||
Debt instrument maturity date | Apr. 25, 2022 | |||||
Weighted-average interest rate | 2.00% | 2.00% | ||||
2017 Asset Based Lending Facility [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 500 | $ 500 | ||||
2017 Asset Based Lending Facility [Member] | Letter of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 35 | 35 | ||||
2017 Asset Based Lending Facility [Member] | Swing Lines Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 30 | 30 | ||||
Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs | $ 0 | $ 0 | $ 1.7 | |||
Debt instrument maturity date | Apr. 25, 2022 | |||||
Required annual payment percentage | 0.25% | |||||
Debt principal amount | $ 175 |
Warranties - Schedule of Change
Warranties - Schedule of Changes in Warranty Liability (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Guarantees [Abstract] | ||
Balance at beginning of period | $ 37 | $ 22.6 |
Warranty provisions | 24 | 27.5 |
Settlements made | (25) | (25.8) |
Warranties for prior year acquisition | 1.2 | 12.2 |
Divestiture adjustments | (0.7) | |
Changes in liability of pre-existing warranties | (0.3) | |
Balance at end of period | $ 37.2 | $ 35.5 |
Warranties - Accrued Warranty C
Warranties - Accrued Warranty Classified Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Jul. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Oct. 31, 2019 |
Guarantees [Abstract] | ||||
Current liabilities | $ 22.2 | $ 24.1 | ||
Other long-term liabilities | 15 | 12.9 | ||
Total warranty liability | $ 37.2 | $ 37 | $ 35.5 | $ 22.6 |
Earnings per Share - Reconcilia
Earnings per Share - Reconciliation of Basic Weighted-Average Common Shares Outstanding to Diluted Weighted-Average Shares Outstanding (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Basic weighted-average common shares outstanding | 64,125,216 | 63,134,486 | 63,863,441 | 63,011,955 |
Dilutive stock options | 40,467 | 0 | 79,135 | 0 |
Dilutive restricted stock awards | 657,931 | 0 | 465,503 | 0 |
Dilutive restricted stock units | 556,103 | 0 | 475,060 | 0 |
Dilutive performance stock units | 538,372 | 0 | 436,933 | 0 |
Diluted weighted-average common shares outstanding | 65,918,089 | 63,134,486 | 65,320,072 | 63,011,955 |
Earnings per Share - Exclusions
Earnings per Share - Exclusions from Calculation of Weighted-Average Shares Outstanding Assuming Dilution Due to Anti-Dilutive Effect of Common Stock Equivalents (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive common stock equivalents | 9,808 | 3,493,183 | 241,499 | 4,325,806 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive common stock equivalents | 0 | 627,600 | 0 | 779,600 |
Restricted Stock Awards [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive common stock equivalents | 0 | 0 | 63,615 | 0 |
Restricted Stock Units [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive common stock equivalents | 9,808 | 2,865,583 | 177,884 | 3,546,206 |
Performance Stock Units [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive common stock equivalents | 0 | 0 | 0 | 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense (benefit) | $ 2.4 | $ (0.5) | $ 9.6 | $ (13.2) | |
Pre-tax (income) loss | 9.10% | (11.60%) | 17.80% | (39.40%) | |
Net discrete tax expense (benefit) related to net operating loss carrybacks | $ (4) | $ (5.2) | $ (4.6) | ||
Net discrete tax expense (benefit) related to share-based compensation | $ 0.8 | ||||
Unrecognized tax benefits | $ 4.2 | $ 4.2 | $ 3.1 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Contingent Liabilities (Detail) - USD ($) $ in Millions | Jul. 31, 2021 | Oct. 31, 2020 |
Commitments And Contingencies Disclosure [Abstract] | ||
Performance, bid and specialty bonds | $ 347.7 | $ 328.6 |
Open standby letters of credit | 23.1 | 11 |
Total | $ 370.8 | $ 339.6 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Jul. 31, 2021 | Oct. 31, 2020 | |
Loss Contingencies [Line Items] | ||
Contingent liability under purchase agreements for future chassis inventory purchases | $ 6,300,000 | $ 40,400,000 |
Repurchase agreement | 2 years | |
Represents the gross value of all vehicles under repurchase agreements | $ 144,000,000 | 191,500,000 |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Estimated loss exposure under contract | $ 16,900,000 | $ 21,100,000 |
Business Segment Information -
Business Segment Information - Additional Information (Detail) | 9 Months Ended |
Jul. 31, 2021Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Business Segment Information _2
Business Segment Information - Schedule of Selected Financial Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | Oct. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 593.3 | $ 582.2 | $ 1,790.9 | $ 1,661.3 | |
Depreciation and amortization | 7.6 | 9.2 | 24.2 | 30.9 | |
Capital expenditures | 5.3 | 2 | 13.9 | 9.7 | |
Total assets | 1,252.9 | 1,409.4 | 1,252.9 | 1,409.4 | $ 1,312.3 |
Operating Segment [Member] | Fire & Emergency [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 269.5 | 306.7 | 857.7 | 802.4 | |
Depreciation and amortization | 2.9 | 3.1 | 9 | 10.2 | |
Capital expenditures | 2.8 | 1 | 7.7 | 5 | |
Total assets | 676.7 | 766.9 | 676.7 | 766.9 | |
Adjusted EBITDA | 15.8 | 12.9 | 47.6 | 25.1 | |
Operating Segment [Member] | Commercial [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 111.3 | 92.4 | 292.8 | 393.8 | |
Depreciation and amortization | 0.7 | 1.1 | 2.2 | 4.7 | |
Capital expenditures | 0.3 | 1.1 | 1.7 | ||
Total assets | 194 | 205.9 | 194 | 205.9 | |
Adjusted EBITDA | 9.7 | 10.3 | 25.1 | 28.1 | |
Operating Segment [Member] | Recreation [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 212.5 | 182.7 | 640.5 | 463.6 | |
Depreciation and amortization | 3.5 | 3.4 | 10.7 | 10.2 | |
Capital expenditures | 1.6 | 0.2 | 2.9 | 1.6 | |
Total assets | 314 | 309 | 314 | 309 | |
Adjusted EBITDA | 24.1 | 12.1 | 64.3 | 17.9 | |
Corporate, Other and Elims [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 0.4 | (0.1) | 1.5 | ||
Depreciation and amortization | 0.5 | 1.6 | 2.3 | 5.8 | |
Capital expenditures | 0.9 | 0.5 | 2.2 | 1.4 | |
Total assets | 68.2 | 127.6 | 68.2 | 127.6 | |
Adjusted EBITDA | $ (8) | $ (13.9) | $ (26.6) | $ (31.5) |
Business Segment Information _3
Business Segment Information - Reconciliation of Segment Adjusted EBITDA to Net (Loss) Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||
Interest expense, net | $ (3.4) | $ (5.7) | $ (14.4) | $ (20.3) |
(Provision) benefit for income taxes | (2.4) | 0.5 | (9.6) | 13.2 |
Restructuring costs | (2.5) | (1) | (6) | |
Stock-based compensation expense | (5.4) | (7.2) | ||
Losses on extinguishment of debt | (1.4) | |||
Loss on sale of business | 1 | (2.8) | ||
Impairment charges | (3.7) | (3.7) | ||
Net income (loss) | 23.7 | (3.6) | 44.4 | (20.3) |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | (8) | (13.9) | (26.6) | (31.5) |
Operating Segment [Member] | Fire & Emergency [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 15.8 | 12.9 | 47.6 | 25.1 |
Operating Segment [Member] | Commercial [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 9.7 | 10.3 | 25.1 | 28.1 |
Operating Segment [Member] | Recreation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 24.1 | 12.1 | 64.3 | 17.9 |
Reconciling Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | (7.6) | (9.2) | (24.2) | (30.9) |
Interest expense, net | (3.4) | (5.7) | (14.4) | (20.3) |
(Provision) benefit for income taxes | (2.4) | 0.5 | (9.6) | 13.2 |
Transaction expenses | (0.5) | (0.6) | (3.2) | (2.6) |
Sponsor expense reimbursement | (0.1) | (0.2) | (0.2) | |
Restructuring costs | (2.5) | (1) | (6) | |
Restructuring related charges | (0.7) | (0.3) | (3.9) | |
Stock-based compensation expense | (1.9) | (1.8) | (5.5) | (7.2) |
Legal matters | (2.8) | (0.1) | (3.1) | (1.6) |
Losses on extinguishment of debt | (1.4) | |||
Net gain (loss) on sale of assets and business held for sale | 1 | (1.7) | ||
Loss on sale of business | (0.5) | (9.3) | ||
(Loss) gain on acquisition of business | (0.4) | 11.9 | ||
Impairment charges | (3.7) | (3.7) | ||
(Losses) earnings attributable to assets held for sale | $ (0.3) | $ (0.6) | $ (1) | 0.8 |
Deferred purchase price payment | $ (0.1) |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 02, 2021 | Oct. 31, 2021 | Jul. 31, 2021 | Jul. 31, 2021 | Jul. 31, 2020 |
Subsequent Event [Line Items] | |||||
Proceeds from sale of business | $ 50.9 | ||||
Other investing activities | $ (2) | ||||
Dividends declared per common share | $ 0.05 | $ 0.05 | $ 0.10 | ||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Dividends declared per common share | $ 0.05 | ||||
Per share of common stock on annualized basis | $ 0.20 | ||||
Dividend payable date | Oct. 15, 2021 | ||||
Dividends payable, record date | Sep. 30, 2021 | ||||
Repurchase of company's common stock | $ 150 | ||||
Subsequent Event | Sale Of R E V Brazil | |||||
Subsequent Event [Line Items] | |||||
Proceeds from sale of business | $ 4 | ||||
Other investing activities | 2 | ||||
Remaining consideration to be received from sale of business | $ 2 |