REVG - Earnings call transcript Q1 2018

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Operator

Greetings, and welcome to the REV Group’s First Quarter 2018 Earnings. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Sandy Bugbee. you. Thank

begin. may You

Sandy Bugbee

which call thanks quarter us. of XXXX on investors.revgroup.com. is and accompanied and issued reconciliation now on by available slide the that that Please to refer night, our available measures slide of our GAAP X presentation. also Today's presentation, a at will website first and use results. it’s our non-GAAP financial being to of we during for morning, includes webcast a this call, Last is joining we release is Good A website. copy

statements the other Our that fiscal Litigation the not last night by such disclaim unless a remarks be Form and may those All we and statements that answers matters will These These to statements. our X-K Act. filed forward-looking actual of include or are earnings otherwise Securities from include, with forward-looking our be Private to cause the updated which to or call any are conference fiscal SEC make to our until filings this among at a different next to others, SEC. these risks statements, within have could expressed the implied references forward-looking all. or risks in subject meaning if described obligation Reform results year quarter quarterly We update forward-looking call, quarter with on stated. we year materially

now President the call our CFO, as today and the Tim. Nolden. as on are to call Dean turn Tim me will CEO, our Joining well over I Sullivan;

Tim Sullivan

And Investor of quarter, than and across event showcased joined interest our in than in in everyone We in thank call. the from everyone Day I Summit the in would who portfolio. more We story preview Investor begin still your like our Sandy. Orlando we Rev to various Day our provided on parts It X,XXX us and REV my for Thank of entire to might of XX greater I customers a international to our you, detail. materials, XXXX new And event at available and RV dealers, Dealer more Vehicles discussed refer the you on on which anyone We to be welcome feedback Group, are presentation to January. dealers our the strategies products. the before our great encourage website. stakeholders. review who Thank lineup sneak receive

in sales XX% to reporting full-year Now on let's our growth line XXXX experienced We're review our financial were and each our meet we in of first grew sales Net track quarter expectations. our results with plan. segments.

Our in XXXX a our will market. Fire of Peru. growth Recreation customer mobility summit last sale in the of and outlooks have sale of us significant we the and and had demand The entry attractive Commercial in am a perform markets, to with and Rev two airport this for their global transactions in in November been nine our continue meet that rear introduced XXXX. which the January in products that of favorable to backlogs, I a opportunities of designed ARFF, on implementing new Titan represents us the stage to first our strength objective compete well, we're our to quarter. pleased Titan E-One strong quarter. their end large new initiatives the call continued Pacifica on to We booked already the We units two hybrid have and advise Chrysler transformational adding during of allow has van with product introduction mentioned end that growth outperforms help earnings Emergency, acquisitions three driving segments, sales and All operational

call. to January, last in the the truck US volume RV to and years December running. won of RV early consummated December in has the Association's in the higher Dealer JV the European We and US We're agreement. towables markets. motor access campers rapidly-growing selling the signed number coach in and to with has the camper motor the Award Lance Quality recreational in the truck In National coach Lance now Daimler market. agreement Chery early sales Daimler Lance acquired a segment toy of week is to long-term is distribute Germany growth first days Manufacturing Campers XX and motorized our existing of right the in Setra the brand. Other we Corporation. collaboration to portfolio the in adds prestigious Circle collaborative And and one to a shows efforts Setra portfolio. product addition process X integration our our Lance we we with addition the Slide premium the for improvement. continue the are profitability in year. of to complement but existing it suite leading a our that remainder great campers, late announced contemplated outlook Also towable gives expect haulers offerings new

remains adjusted reflect revenue we've quarter results. first the expectations income EBITDA for revised net our unchanged, Our net to outlook year adjusted full and but income and

to million expect of $XXX to us to and EBITDA a fiscal we EBITDA outlook in than now XXXX. adjusted our of adjusted million in in and goal be greater XXXX $XXX income We fiscal XX% of $XXX XX% be This $XX track represents to puts pre-IPO net be by $XXX and year growth full billion of achieve the from from doubling XXXX to XXXX million on adjusted million, to $X.X range million. margins to million, billion, adjusted revenues $XXX expect and to to range net EBITDA the $X.X income and EBITDA

the second the our year expected of of be every to we to occur full-year adjusted during majority of year, EBITDA the half the case during will expect generate adjusted As of the the with onlyXX% first our EBITDA half year.

financial performance. coverage our over the turn of provide call more to I'll some Now to Dean detailed

Dean Nolden

to good and Please morning. Tim, Thanks Slide X. move

growth few last sales a $X.XX year for our segments XX.X% Tim As by Net in income sales to plan track $X.X year. a million to XXX% also million quarter, share. the acquisitions start contributed over sales diluted with diluted with we're share. and on shipments. exceptions $XXX.X net per $X.X and $X.XX all grew of grew our quarter net Recent to sales but meet first Quarterly full due one operating or good year. or experienced the in the said, growth per mix timing were income is for across the we to to million to growth Adjusted by off our up XX% of quarter

X% benefits from operations, and EBITDA lower benefited of the somewhat recently from higher a the earnings are and tax $XX.X acquisitions, EBITDA compared interest Tim higher as that first as We the was to Adjusted the quarter business first mentioned impacted expenses the $XX.X adjusted quarter quarter. reform. from certain earnings result pertaining the acquisitions, favorable by impact improvement occurred pleased expense performance of well net segments. was XXXX. the to of quarter with from million of during of this also which one-time transactions Adjusted EBITDA sales million EBITDA Adjusted US in to increased in for result enacted

of fiscal pace We full in operational made leverage XXXX, scale. as from procurement, the well our as increased expect to continued benefit in the year efficiencies as accelerate improvements of from operational a we

material segment performance our of adjusted prices. from now Ferrara increased XXXX $XX.X companies, to recently higher $XXX.X acquisition discuss this of F&E of quarter segments. reductions, start Emergency sales, selling first XX.X% cost efficiencies our and acquired turn EBITDA the primarily the primary manufacturing million average impact page contribution grew to me sales by were higher and and ofXXXX. drivers Let to Fire and unit X.X% X, Three driven of to for increase the acquisition. improved the Ferrara April the quarter for the our million

demand markets. business increasing in continued our forward, Going fire ambulance and continued Emergency Fire we see in from both and strength steady

of due mix As Commercial to sales X transit which to the unit segment, $X.X is adjusted was primarily unit numbers quarter. involved. bus a to quarterly school were quarter, in bus. in sales of million from bus, shipments shift upX.X% tend for the the skew school sales due significantly Commercial the segments dollars decrease The in lower categories EBITDA primarily higher showed all slide excluding the product and on

introduction In the markets improvement the business. actions offset in in to decrease taken ongoing operating attributable a million. sales and to XXXX Turn new will and backlog end quarter. to This by the quarter increased companies. segment units, . product addition, promotional EBITDA profitability was during quarter of first fiscal one camper unit support eight addition million, segment quarterly $XXX.X the at acquired increased an model improvements backlog for the the Class results facilities. growth ofXX% increase in to from was quarter commercial end the million. one-time managed increase in to impacted XXX% have from sales Slide mix process we and bus continued Lance This the of in positively volume to manufacturing believe models strong, activity of costs first volumes, significant grew totals some increase XX% XX, is benefit initiatives the XXXX. higher $X.X and benefit our year Recreation by second our $XXX of acquired We and full-year XXXX. expansion the segment in partially added a older and to to margins backlog adjusted of The scale the from Recreation the with shuttle up in exited We to incurred believe fiscal remains quarter shuttle bus in we prior through and

Recreation the across Looking customer strong groups many embrace RV for ahead, continues as the demographic end lifestyle. markets very demand remain to

million XXst, to turn of financing total at debt I'll our deferred net sheets. was capital. balance of XXXX Total $XXX.X orXX% costs January Now

its expenditures to As million XXXX. of revolving December had of under $XXX quarter were the our the capacity to $XX.X we in available million compared in which a ABL to for first increase XXXX. Capital credit borrowing was million $XX.X quarter million result, amended facility, $XXX

that $XX the $XX reduction of million. net From to free flow We fiscal approximately sheet the range XXXX improvements we the be realize guidance capital and impact of $XX any million our versus in of standpoint, in still capital, cash to year for our will expenditures balance positive acquisitions. original in of expect working are projecting future management before now million

and leverage the be external have access we to initiatives growth low addition, future. liquidity, markets adequate our the field foreseeable will that grow for to for In

like the rate in be in our quarter outlook on toXX% operator rate based first to to for full I'll in for range year rate of tax a expect for year to now And be realized tax first to to the our the the expect Lastly, benefit we effective our including effective this the benefit results. now fiscal We I'd update of the XX% the our one-time XX%. Q&A. excluding normalized call one-time range quarter. turn year over XX% full

Operator

[Operator you. Instructions] Thank

ahead. is first from from Jamie Our question Please Cooke Suisse. go Credit

Jamie Cooke

question, you to us significant start Hi, know there cadence the year good you guys people is way quarter numbers get of I of just weaker sort morning. we full year the with comfortable how the think are any I a can guided the pretty guess first about with help to do which because had to just trying but throughout we margin given earnings that, ramp. get think how implies it I

So be any would there help great.

Tim Sullivan

lot Jamie. talked Yes. a that We've about

last and you when I IPO. a got some of every the It's putting of QX four kind together to that of the is double the before we coming XX% the saw our you and and that what have two, saw information aboutXX% for we're year that nature going and of all QX in earnings think we you are think in are that issues and were whammy. I there that year the single year

don't a the between right You've have the is. November when during seasons, up bit first the that time got also should ago anytime change our and months of is the XQ's but We kind about split, it spread it for the several other is I catch with percentage, XX:XX year. the think rest out mean thing that look in actually of this periods, orders what going of talked at way that I what see be to January fiscal year then and and I changing in holiday XX% is probably little timing everything I'm happens afraid. the quarters. It a it's long vacations, you hunting come soon they it in and our it's kind we

Jamie Cooke

just just can I'm out that you associated within you you called at quantify commercial bus improvements us -- Okay and facility. shuttle one-time just with help sorry big charges how was? the Can the

Tim Sullivan

million a in About it? was Imlay and what bucks it operations our wise City Dollars Yes. was for Michigan.

to is get school kind a let it us first really buses four of bus the shuttle. our soft miss bit that the things market the quarter. pushing really a keep to costs performance transit shuttle improve quarter, of ones it's is quarter, price. of to price the a to sure quarter school have efficiencies, unusual. and really we're was a the buses for bus, market costs One transit we good but if usual that markets; And then do our that the commercial challenging Actually we but in the up, were little down big five make down get quarter for and or going and the with trying us, you of market doing was performers shuttle bus the we our down transit buses really affected But can on the dollars that's was of we're

dedicated sure for are gets us. thing to that that profitable make very We

Operator

question Please next Wells from Fargo ahead. Andy from go Our Casey is Securities.

Andy Casey

got providers. thank with line some of times some to question delivery Good lengthening to chassis morning, year from back question. you. I We're lead see order Jamie's a in in starting

then you expect that of the if to achieve the that seeing you are XXXX further and does impact First, updated how so timing goals?

Tim Sullivan

we hope situation current chassis have approved not that EPA but Its instance for Sprinter worse yet. not does been get Mercedes

delay in those. chassis. work of bit off a a there's We So do receiving back

chassis term, with in a our we in I fine, loaded in So of QX quarter second we but by backend here near the near-term and needs the you mean can lot plan, QX. as imagine our are

year. that's time impact but right some don't negatively with time we it, basis, of we but also, with there's noise to to we react a react that noise plan little we've now something GM to So that got there's we manage our to It's bit to a but see and fiscal Ford. got regular going in

Andy Casey

even expecting be margin you And how you're higher chassis the component but you only those of kind Okay, the purchases. us if Can impact a this what and your costs purchases context price some in environment then achieve thanks next to that about it of appears ability and Tim. some affect cost input could the material remind your of year? expectations year products to not to rising of

Tim Sullivan

Yes. the high obviously question vast direct percentage are we everyone get spend. less Obviously, from are mean and the few aluminum thanX% which in a I both the topics last of of our the suppliers. top majority, of days. very buy what day Steel steel of we a And in and aluminum, US

that been on foreign so low. suppliers we that's aluminum got and diligent So as steel the as chassis, do couple one be or chassis of And low remainder we've we to because last that plus we on that our is pricing is this there. really the sure you we're see we years stay actual other buy our what's that just into The that have aluminum kind in doing total material year, for very the adjustments cost we bigger cost so through fiscal we of will sure costs is work, exposure see that the make diligent. aluminum enough and extremely going where our of where And locked wanted didn't make we see of very The to chassis have of well, warnings some is we've any We And is in volatility to understand succumb but on issue we address, of I move to it want of that stay it's to to going ahead if chassis we it, purchased effect game. advance we're to are going those. if happening, it's That's of we good we be advance far pool how anywhere. That's well of can the we're -- XXXX. you issues. a percentage think in ahead news a

Operator

ahead. Our from Jerry Please go is next from Goldman Sachs. question Ravitch

Ben Burud

for could Jerry. Ben is an high us strategically This you was everyone. platform hoping level. on from yours just shuttle update on Hi, Burud give I guys a

if Just are end any to been has guys market? with go wondering down doing strategic And how making the product? you higher your industry decisions

Tim Sullivan

strength definitely where that's down our We're market, is. going not

an do. shuttle quality there's to been question, we we low to that not that make. Our we'll bus. strong. what the as I making just any to continue margins answer area, diligently that that quality to we cost shuttle product no in fully we school that to make as a continue is to customers recently offerings we mean bus, building out And the the to a our continue mentioned are market can that our did in do line bus buses. we're we down to to sell the come not any which buy previous of with have have is get shuttle to question far in is make strength What make things to crash-tested sure The with want opportunity what intention we to but market as sure that option, exception work the that's on But has I whatsoever. floor dramatic if do also markets previous moving the changes that. on bus. commercial Those shuttle will And pullback expect in bus in

Ben Burud

some more the two give those segment? on you Got F&E, and color us and within fire was pricing. to I it, shaping how within color then some between hoping are get mention Can up ambulance

Tim Sullivan

our increases segments, of go and it's or material really Yes. labor and to on sort thing. both up tied Prices every increases year cost

very the emergency with disciplines markets. and fire we're within think I the pleased

we as increases have adjust ability do mature think they're cost I markets the with to to them.

price pace price increases, but to that our users. end that those that it's why will work we you go understand have and that have to very And from at as results industry the that that continues sense a a well see when we stable obviously mature They continue increases so quarter. in we can we makes and every

Ben Burud

get just stronger the magnitudes would be or that pricing outperforming Got maybe give little of it, two would a a fire just the is guess which out perspective bit seeing we've maybe fire ambulance in and more probably from pricing? least? or Can like just consolidation seen quantify at with you granular. of I growing

Tim Sullivan

correct think think pretty actually pricing marketplace. the they're we've got in point we're now and comparable I the levels at No, where that I

we sourcing So the get labor. fire really a related seeing that at pricing. also seeing doing now Where from and three is are anything But and benefits fire and material we from price scale standpoint improve larger and have an we're increases on level. advantage you're emergency abnormally can to inflationary margins our right more it our large apparatus pricing is helps though without inflationary more companies,

Operator

question Mig next Baird. Our Dobre ahead. from is go W. Robert Please

Mig Dobre

honest everyone. progression you Yes. I'm Good little with here, struggling about be the Tim, morning, we're and bit supposed to be with a how still thinking earnings it.

in XX/XX to You're EBITDA full that seasonality. due only the XX%. you've year was years, of look three talking or been about a and around to looking last If earnings front half, the we're to XX% XX% back split typically to I now generated in

moving shift that will some talking maybe So because first away unique at some X% Can we're also a you even these the two half history? of go meaningful a the earnings versus a of the seasonality from that then be I observed to still if maybe help of understand things. about least the number to seems second items one-time there why and costs in delineate guess us it's or basis, on impacted go-forward QX the

Tim Sullivan

we probably not anticipated we that It's that I it's, to hit somewhat but the in did probably and not budgeted that those the things float of the costs on-site some that's out it's our have in we quarter costs acquisition did, the of we we that see are the were the involved had unusual either yes immaterial number that's Lance the from some costs guess. acquisition. the for but the and first what We and JV, why XX. those, not we Daimler carryover obviously Yes, doing AutoAbility We with of said you're for XX- huge have things going we the some situation, closing costs free accomplish on in to the things entry. the had

make that that. numbers. tough group challenging our And that it had were the second We last we So kind they're sure that's but why where we equally the hit we thought mean quarter. we anticipated were. we some year expenses I a in hit some But was quarter. QX, went QX one-time we that unusual to we because into quarter quarters

two if don't large on a sign to meaningful to And two most inspections. Ferrara quarter, surprises think of a that surprises inspect can the show swing lost basically we EBITDA their we that by buses move we were $ things in the the to And biggest off do ship quarter. had out customer And Xmillion impact $X.X aerials to. had of was that due -- I they wanted the product. themselves not a in that to Those shipping the we and the can't transit by handful QX. didn't up a into

targets little made So those that additional didn't than and ship we in. will we budgeted to Ferrara all quarter. our really expected those ENC. big costs tell to that were the other extra money would the you the shipments And for Other We the And really and all those. to at timing some the extent that in able in we some be areas quarter. of mitigate to anticipate and we I of a expenses had actually shift the challenges

that big completely not want X% but in the is second set, said the it's of I pretty basis year, especially first a probably between a concrete. say to in I of deal when a half don't significant but cast number, think well a year half not like that full isn't annualized purchasing I

Mig Dobre

your you about quarter adjusted the can but hopefully it looking at at implied $XX can the EBITDA guidance, second I midpoint. of I'm perspective that right Well, appreciate in appreciate my million implies if here

be we're get like Essentially precisely quarter, guessing would it trying row margin be a is to I'm not And would in the it that's I it front of this it the the what a seeing a but the second what something to lot that we're in understand revenue we're going half, . to X.X knowing get not half, all getting and of that here as is level a X.X that what margin what to in happening in expansion really the in X.X back would and quarter Thank that. or where call loss get So think there? comfort you. to back the from I to changes is a half preventive it for me. be

Tim Sullivan

Well, the first Mig. numbers of all, you've right, got

what I that challenging it guess from is a is So It's story. standpoint. it

highly incredibly year between to think something I two last demonstrated the differentiation that first challenging half first And until they're fourth second half it's quarters portfolio I year the way the going are of in the it's of It's what unusual, do. faith a years leap and nature stay that third of it's the that a going today we've story. our respects understand to different. and many it's is do a we have to mean that. unusual. to a a and and half going we do just But

stool break that leg with think got portfolio. as mix a not I to fourth a we've seasonality at far up that the may our have as the current

Operator

go Bank. Please Deutsche question DeBlase next from Our ahead. from Nicole is

Nicole DeBlase

good morning, thanks guys. Yes,

backlog. guess first around the question I my So is recreation

still the in backlog is that or saw without bit lot you it during the that quarter the I looked a So came acquisitions? substantially? backlog what that the you've a Like growth have acquisitions you about would know growing little like the done. Could talk from just of

Tim Sullivan

hard we've trying and one, we there backlogs discussion backlog really We've we at answer of those absolutely having, great We're Lance. a and been been -- meeting would couple actually example our at their It's weeks actually it organic have had been what in the of to a really the yesterday. backlogs And affected would believe that's And what's would doubled but a Renegade. there, doubled board inorganic only versus question We Midwest trying our differentiate. have not had determine or at have of without a backlog, Yes. short been that's the positively RV. would they it something ownership not. is is to have

purely up how quarter. and look really is had you was traditional with versus that that new I it significantly our the products was do is in which at up, some organic organic to introduced in it the much And So of business, back September. obviously inorganic when then think we

nicely even really quarter And the They head rolled up really acquisitions all in first these some higher. we show loaded But the December. across into we pretty took in the with backlog first it well. business that and of traditional the Louisville weekend the up a good And up as took our of all of steam. orders A we in after RV, just we're are significantly

Nicole DeBlase

And an looked where margins was Tim. recreation then segment pretty I good thanks Okay, quarter. same that area guess this

improvement there that and in year-over-year can XQ sustainable isn't beyond/ that guess or in quarter anything level margin drove of sustained that I XQ improvement So beyond was be first the the

Tim Sullivan

blocking minute, areas how say focused the three is those particular improving, shuttle the get where me to in And just and areas to and we're off. pay the bus. on starting areas, laser up. vans sustainable We've and aside margins step really margin on let and absolutely those indicator our we three Yes, tackling are for our mobility three underperforming focused Decatur, a

it we move to end the continue as improvement show not of hope to we it sustainable, So through is some the year. only

Operator

is question from Charley Robinson Humphrey. next SunTrust from Our Brady Please go ahead.

Charley Brady

or the the aerials shipments QX and Hey, lifting to the delayed to beyond? clarify morning. Ferrara, Tim of thanks, just transit this good on Hey, buses

Tim Sullivan

couple story days No. QX, the the they QX. literally end after of sad the of part a is shipped about

already So the They're in shipped. they're gone. bank. They're

excuse when have gone. was from sign-off we an - hate it missed we really but we really always as use So that but have and customers, get and they're to dealers timing it, I manage to to precisely

Charley Brady

acquisition two the had January on thanks. I'm Renegades the emergency. right, in And for you on out there is not fire when and and months obviously impact recreation, owned. incremental All in incremental and sorry Renegade it third in months the Q, you you just broke

trying if give trying an but -- what I the just am for the can us two, organic quarter? Renegade. number Can So have the split like get look the in other I for to in don't to number back recreation recreation, obviously I a sense monthly by of the out might organic quarter growth

Tim Sullivan

effectively the to from Well just just with up got we Renegade that picking the and new in amazing. we've that built Yes. momentum a used January doubled example new we're you give shipments These you asset. are year Renegade. since that assets That's for an it, up ago

have probably really under and January meant Rev did to umbrella bringing the shipments not value But fully that us. double, We to January. the the Renegade, that of appreciate them were what

that's little the are you see to forward. momentum kind of going going So

Operator

next from Our Please from comes go ahead. question Courtney Yakavonis . Stanley. Morgan

Courtney Yakavonis

growth just on if question quarter. wondering us in just organic out that I'm break the for you this piggybacking could F&E

Tim Sullivan

I an that on It's struggling we're immediately things the add really we're immediately. We're E-One not there to trying fact things as acquisition do evasive, do hard. you -- biggest our it. you in are to in, getting sourcing happen we organic we figure and two start? we're these loaded and due be really to in just but you where get do we where growth Ferrara it's hard so really, the with to or trying Once Primarily do start do a that not mean basis. it's integrate KME be in again our we really evasive, out trying to there that How do. take real

meaningful additional are dollars So and of EBITDA. these

we fact we that part of would can The part Well, can guess, So an be. bigger of is those the estimate, Rev it where of company. gotten would you them without really Rev. that how happened joining now; much a they're the where of one backlogs advantage give being of they've have things

to trying we're all into again a our we're numbers be it. that So evasive, hands meld around hard It just we getting having starts time have. do it's the not to all

Courtney Yakavonis

top-line it on have you basis the do necessarily EBITDA So on a basis? not

Tim Sullivan

at we half board again, much being we accounts But new they the separate. new an them business, not without before, probably and picked argue same same with -- they Rev. they sold both steady to year. the organically that was really spent now up quarter-over-quarter, all top to Ferrara sold questions, talking but have umbrella the board mean line types didn't through meeting part we or may where thing. we're has the hour where that you our It's do say subject are of you-- right sell businesses wouldn't. fire asking a growing three they KEMI at apparatus does Yes. and the they end about out I actually, did. ship We've fiscal how Rev start change this the and and because is it's of you I'd where that of where have E-One versus stop, been year-over-year, of the

don't off, we And say that do the this start Again, guess, level where board start because that's do it about and not then we we we that. or be do where to guess, to So trying that we to at estimate of just evasive; track oh-- you have. was because big and had yesterday. lose As that the you this demand we of can a even cut to want discussion Courtney of

Courtney Yakavonis

is three any the enough, segments and differences expect XX% applicable would fair you the three? between just or then Okay XX%, to on split, that all

Tim Sullivan

can that the effectively you Open No, maybe set at let It's understand seasons seasons give you a little buying there's seasons and there's buying the they're in ,the bit for different, new but September three basically an so are Louisville RV. differences, and buying are me you've --the got Open December week year new first introduction carry that's industry. the Elkhart across new from the and April House, the of Elkhart, then over and for just the that's House, coaches in the example it's

those going which its really municipalities. add budgets cycles you've to And so with -- their is third in the purchasing a they Fire got RV definitive. starts in in so and school. all it gets quarter School in here expect the and when with kind the do own cadence. end approved start in and just has the orders of there. a school, really little the of April, shows harder buying now buses we're fourth is of And and ground really March meaningful season different happen mean into it August. school I happening a cadence we're same the on for are way the for by to part our and the into quarter, bit calendar very will And are very then of

be of more Ambulances fire apparatus. different. the expenditures time large And fact tends fire, as well. a steady so that than that's as to little for the just all as very bit a They're a not period definitive

that So bit approved. make budget budgets and their little to of some they've more a steady different their there's when commitments tends big to of then municipalities but got new the periods time be

we the The spread trucks. things maybe lease not thing high. the trying us we're not demand of that really but buy some to out quite out long to only and fire some to is with versus which help The things, but do other was about convince of dynamic see municipalities with that backlogs to confuse seasonality these are including those fire because buying,

So as that you high helpful our just split. mix could if what any XX to be cadences that to split. XX:XX demand as in the purchasing wasn't it get comes could all out high all to on split was, we that throw XX:XX XX-XX that be as and of would pot But it split XX:XX year they're level it but that down summarized different and as in as off given out the

Operator

question Casey Our is ahead. next Securities. from from Fargo Please Andy go Wells

Andy Casey

$XX on payable that and the portion that flow million provide I've outflow. side, million by QX little cash was had QX? a $XX insist a some driven working Thanks bit you Can got color very the operating that for operating question if a in capital more taking I'm outflow. cash big it you a positive expect Within wondering follow-up. just accounts on on then unusual my and

Dean Nolden

Andy, change we you hi, Saturday know as the last end change, of year this Dean. timing calendar quarter end. The Yes, to is the our year from end

impact the this timing reoccur that accounts So as that won't payable one for forward. time and go year, obviously payments did we item of

and a regarding in of wouldn't second working cash, positive quarter, improving on the flow cash where reason, we're a point. but metrics, if primary we're this all in or our use We our quarter second capital operating flow quarter. the free flow say second second cash the of was I still not that have at half going to cash So most generate

Andy Casey

hand your out Would cash support in take to do Okay, activities you thanks to have QX? you or Dean. short-term debt enough on some expect

Dean Nolden

plenty have our on of liquidity in to We QX. our support ABL activities

Operator

question-and-answer concludes This the session.

Let's turn management the any floor to comments. back closing for over

Tim Sullivan

thanks today. Well, again us everyone for joining

again with XXXX. be I us We're all short plan. going with and We're company's other feel want nothing in We are plan. And our we call guidance. is early on we'll seen our track to talking you the continue to backlog be. to for where And We've guidance. strong got And on to our very very, very strong on through joining end questions. meantime, remain really for free with markets this as We're Thanks track any us. right track perform we June. highest those the life. meet in fully deter again internal we in our our move expect guess very for to really to think of steady we that

Operator

for concludes you your This teleconference. today's Thank participation. again

your time. You may at disconnect lines this

REV (REVG) 8 Mar 182018 Q1 Earnings call transcript