REVG - Earnings call transcript Q2 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings. Welcome to REV Group Inc. Fiscal Second Quarter 2024 Earnings Conference Call. A question-and-answer session will follow the formal presentation. [Operator Instructions] Note this conference is being recorded. I will now turn the conference over to Drew Konop, Vice President, Investor Relations.

Drew Konop

for thanks and morning, joining us. Good we today, issued our results. XXXX fiscal quarter second Earlier the available slide release at of on to copy A is is measures is a of available webcast GAAP includes financial investors.revgroup.com. Today's website. on being and which a presentation, our reconciliation non-GAAP call website our X to Please presentation. refer Slide now that of

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

me call is X, and I'll as the Mark Skonieczny; to Mark. to CFO, our as turn and the today our Joining CEO, well Slide Amy turn President Campbell. Please call over on now

Mark Skonieczny

financial will joining today's us quarter's Good operating morning to everyone overview call. provide Today, of strategic achieved performance. on move within the then to I highlights an and commercial the the quarter,

welcome her REV I pleased Campbell the am CFO, to to begin, I and Amy Before introduce team. as

Brand lead tenure a organization CFO REV. several operating the ASC as ] team well search the and Vice served Solutions the finance financial and am look that to the Prior is she's had agenda I As to impact leadership and experience CFO She and of to had effective and which you remained Industrial bring person Commercial will executive. the the an Audit right of business. Amy with as Caterpillar, XX-year Safeway's of as know, for divisional appropriate Engineering a the [ many ] finance forward Group, role [ Officer. experienced in President, contribute division. for she REV CFO for to roles, thrilled we highly Relations this as Chief advancement unbilled our Investor to mix months she positive joining operational included

Now to improvements the operating like turning of results highlights quarter. other to to delivered build drive the on that and that across are the another focused financial employees sites. I manufacturing momentum enacting to remain pleased our worked operational would dedicated quarter improve and thank within have efficiency initiatives and throughput have strong we all performance.

a basis the XXX than exited unit more Fire efforts prior & versus second months taking the Fire our X.X-year up business, rates improved past visibility adjusted and price was as in shipped demonstrating prior team. is Emergency today backlog. place that quarter, these points legacy value. Throughput extend to quarter Emergency the worth the versus were opportunity initiatives significant are each margin Within and with in results higher put this unit high and backlog. the we a years, that shareholder line EBITDA With labor businesses by points The in margins increased have X.X shipped the a the through XX these strong drive efficiencies, improved backlog shipments basis the with exemplified resulting previously. We realization work and XXX $X.X quarterly in year, to robust over billion of hold unit quarter &

excellence, our actions full products, a advancing for of integration strong apparatus order experience apparatus production, and fire development our combined the footprint resulted success optimizing X:X ] year federal [ our and example demand Spartan level the demand on were build-out sprawl. To of We ahead [ fire on of backed simplification. quality unit the stimulus, attribute increased budgets acquired the demand that increasing An X.Xx manufacturing backlog, ratio product a and is book-to-bill of to maximize within ambulance we of X.Xx, in the receipts ratio. Price quarterly municipal the return quarter. intake and ] centers urban remain of ongoing the by slightly sustained in with mix continue higher emergency population replacement in meet revenue infrastructure to unprecedented our growth tax of of the a the and book-to-bill of businesses XXXX. related of and We ratio focused of to expectation

] OEM demand. [ X production plants the its to Over Spartan the meet past sister chassis doubled has plant other years, and

fire We be providing delivered brands. truck expanded is dealers fire This brands, competitive time. within across can offer more customers opportunity XXX the and REV a Spartan the purchase a for as as [ to that lead semi-custom ] this the have shortened program, supporting increased in a S-XXX intake program delivered order advantage apparatus several we provides also little days. Today, as which

Within segment Based shipments our impact units which trade-in motorized depressed. consumer the XX% wholesale value equity decisions. calendar through XX% year-to-date on overall April to for year-over-year. We RVs, rates interest and during negative RV remains more of segment, industry higher Recreational recent industry demand than continued purchased unit COVID buying for believe for that Vehicle were motorized new down accounts data,

the backlog. of uncertainty. Despite C A at XX over X-month with as [indiscernible] industry Class we given of health [indiscernible] [ market orders, products into while softer aged low our the has remain quarter year we ] that [ XX in past introductions. Specific healthy costs XX sales model floor plan at our inventories been participate, backdrop and new X and exited the have year-to-date and ] the total current orders which postcode with to improving B a rates businesses to increased reduced and inventory Class that dealer production and businesses have place backlog of levels retail occurred heading channels and anticipated the dealers been to indicates destocking than year year is we industry the orders However,

the C flexibility existing and across backlogs we in we deliver in our manage categories back maintain costs of As enter fiscal B to to dynamics. on confident all response market Class and ability remain half year, our product our to

has Florida simplify within RTC the footprint market. Ocala to significant strategy, the will represented the purchaser capitalize Regional in selected operational to partner support of of Technical continue over we [ Fire believe focusing service this exited the Center, with our decade REV Fire and of an quarter, as they operation or within In [indiscernible] the fire businesses, the ambulance a and on experienced businesses. our for brands continue customer in business that resources core ]. We Florida the opportunity presented We sales sale of direct the and

company-owned dealerships our the of RTC, fire have no we With the within remaining business. sale

as wind schedule. at of partners our In well municipal within E&C business as transit to the bus to who suppliers remained addition, down units and the the E&C efforts would channel team remains have our on backlog of track. I on acknowledge our like completing committed

line expect completed the be quarter. the [indiscernible] to manufacturing instantly operations all We in fiscal fourth

of repurchases and the form Within XXX.X we total dividends. quarter, of returned share million shareholders special and regular the in a

proceeds second [ million a million used the quarter, remainder offering $XXX In the regular of end used in of all of AIP, used $X of down $X the secondary ] the to end Rev Collins Collins our was reminder, cash returned The first a the credit at providing to for proceeds a was in quarter, of purchasing to As the which shareholders. Approximately to our portion first the transaction dividend common addition the we X ABL pay quarter. proceeds participate quarterly of facility special $XXX was XXX from pay to Group essentially closed then million, to million. a at dividend. Bus shareholder, shares of approximately our largest of sale by

The secondary to designated proceeded shares approximately to ownership secondary us below allowed reduced offering its threshold shareholder designate March the ownership X.X%, offering million IP stake X.X down that Board our subsequent March, Board. members. On interest XX, stepped with reducing from XX% In shareholders' of directors the underwritten approximately well that a the XX%. to

of Board several potential preparing members the the for been over We exit have quarters. these past

timing the add recruit who to identify anticipation the of us, growth. In the O'Connell year, replacing guide of in our a retirement us to Kathleen Board Maureen Steele the the our welcomed to board, AIP we was long-term candidates and and important this to January help in Board Annual designated to was of member could it Board. August XXXX, uncertain and That While in chapter of we was February, company next director. appointed value felt new Meeting Shareholder

to contributions forward an has operating execute serves She Finally, Board. strategic set Officer Global diverse and extensive McCann and and ] ranging week, the the wide by Augustine as [ the Cindy the leading offer Chief was as from refreshed at executive look public we last experiences benefit HR Talent our World Group and as will the appointed our of experience Board we to continue board, companies. REV private will and of provided agenda. to currently

& X. last included the which by of [ sales or Slide year. Adjusting first to partially was quarter fewer year. the businesses. reported ] $XX the Emergency divested expectations Consolidated year, was for in In recreational million the to decreased decreased Collins, increased of quarter sales in net attributable in of compared the X.X% net with in sales to line of due sales to $XX million second this $XX that sales Fire million Turning vehicle impact Collins sales net sales trucks, segment lower the $XXX offset prior and million terminal Bus

encouraged the higher earlier operational addressing financials. detailed the Slide actions recreational Emergency from more costs emergency to offset partially to for call maximize efforts of the as and was vehicle municipal within benefited year increase X, to transit Vehicle segments. Fire I'll opportunity and million teams second Terminal EBITDA compared from we and and benefited XX% quarter earnings expectation the allowing businesses improvements, operational apparatus to as and The consistent million business & in the in We to was Amy EBITDA in and mentioned for As when 'XX through by the realization over truck & [indiscernible] price XX.X% or improvements previous sales in businesses, adjusted trucks we terminal year, within industry ship Consolidated benefited the was I fire units which divestiture. segment an to increase 'XX. fire the $XX.X volumes resulting increased units by pricing the than that results turn enacted turn demand with as pricing from $X.X backlog. Please remain offset lower Bus by the and driven Fire million mentioned the sales sales attributable locations. revenue lower-priced year. Included in in decreased all discounting December. Increased guidance reported increase year-over-year Emergency increased businesses. and XXXX of of in earlier, of Recreational adjusted reflected certain manufacturing soft were well a million the Collins provided prior lower of mix last segment $X.X units bus $XX.X

Amy Campbell

previous opening few I and REV a great at I'd being [indiscernible] work together of call does on on role first joining of at nation's Caterpillar the comments, ] my I the working first live. in know you forward communities company for support call, in to many and begin responders thought my Group. considering This I look this REV our Group, the we which [

we interactions staff is shareholders past refresh to several with drive momentum saw and company in our insight several build the products, generate of many a line units, partners the our continue top validated ability over has There XXXX into value. My outside. teams improved corporate opportunity traveled as and gain weeks, significant that as line this increase delivering bottom value and cash past the to we management progress opportunity to quarters. I upon targets, continue of spent Day execution well before from end year. shareholder profitability, the what local which financial to journey our I creation our as Over believe significant the the I've channel business is there have for resulted Investor time the our and to to plan

sales segment to Now year. ] Page results, the increase prior second Specialty let's an The [ $XXX.X to Vehicles of million were compared X.X% move X. quarter

them in XXXX. alignment manufacturing throughput, XX%, increased mentioned, throughout XX% lower legacy better the of success was adjusted attributed apparatus included benefiting ], versus has place Collins to quarter Florida. This shipments increased to of realization, in The campus ambulance and bus, supply local Collins Specialty increased compared local XXXX. to trucks period, sales due million square greater The with offset measured resulted stream. a unit cadence and improvement fire XXXX. XXXX, the also with fire to benefited the favorable fire units an quarter business. second in the $XX emergency net as taken operational better prior of actions in and to primarily across million Mark earnings the quarterly by and XX% operational delivering first year. Adjusting to shipments from year-over-year Ocala year Collins, by units contributed rate [indiscernible] in bus EBITDA Bus demonstrate favorable commitment were and to $XX.X reflecting net sales excellence momentum year, higher delivering past and net As of have for price chain lean quarter and prior a the volumes over that a $XX.X efficiencies, fire the and management. Their year. [ ambulance in from the the quarter better million quality throughput. Combined businesses, offset of along and The apparatus terminal campus with the in Vehicles OpEx increase quarter total was we changes of from or division the included and Adjusting price and was have prior million in ambulances $XX by segment attributed for our of municipal the of teams increased led ramp million continued to on units of higher Within as sales terminal in sales [ increased partially focus EBITDA the primarily realization which contributions $XX.X year unit or was impact highest adjusted of on from that of put their that XX shipped described million divested of to mix $XX.X continued focus ] buildings XXX%. The initiatives year-over-year. since sales that XXXX the of delivered increased increase business. Shipments due been fire this led success value product higher improved lower teams and production largest trucks which miles. a along adjusted These simplification sales increase the our by $XX.X segment in apparatus location of reorganization price shipments EBITDA number partially X of million earnings second transit the plant in is second

to Emergency As favorable Mark and improved margins prior volumes & realization, previously legacy increased versus higher contribution basis noted, the XXX mix. The points Fire year. price was primarily unit related

as as reflects and benefits fourth in versus the for orders past $XXX of quarter. Lower-than-expected a the a increased over now by the bus trucks wind-down. Today's strong versus transit or increase in completion marked Within headwind the the guidance. the end year improvement. lower backlog backlog to demand bus revenue to transit Ambulance a is of for and or terminal the million Prior reduction and result to continued expected in wind year-over-year business' previous businesses. Adjusting business $XXX terminal consolidated emergency orders of earnings the margin partially the $XXX sequential fire update high in actions, X-year municipal fiscal bus $X.X trucks partially E&C well terminal softness the the million backlog momentum, anticipates billion million fired backlog with business operations offset quarter. billion group, outlook year in by down year-over-year the offset $X.X of of market backlog of headwind continued The $XXX and units quarterly profitability included in truck million related attributed pricing ambulance delivering performance Segment XX%. to divestiture million Collins, year XX% $XXX increased businesses for prior a all of

the EBITDA in transit We decremental revenue single outperformance, truck continue to to segment the million the Specialty line EBITDA compared digits Sales low resulting to in production the total result Recreational or quarter [ result & on is driven delivering is XX% demand. Recreation sequentially increased softness XX% decline end within declined margin, in Vehicles units ago, The XX% with with high of Vehicles price in truck prior million the market, the or backlog increased a unit than by $XX quarter the segment the in manage businesses the than [ offset was prior double C execute offset decreased profitability decrease million F&E decreased the inflationary material F&E Class versus primarily primarily to trailing Fire ] lower more Class the in reduction against $XX.X Specialty year double-digit of profitability due the XX million order Recreation unit quarters the in X fiscal over year. months expectations. and realization. In margin. More intake margins the fewer the year EBITDA terminal backlog XX% million expect $XXX shipments of cost EBITDA of digits with by end third and were excellence the offsetting versus in actions C and of $XX.X is digits with the in were or second adjusted as shipments continue fourth the demand. versus adjusted expected the Slide versus to partially increasing Emergency A businesses from decreased in units, with low aligned & remains single to The the decrease towable in and B a upon at Vehicles aligned that results Camper Emergency sales. extent execute of and second at in pricing that in The first cost legacy range. by to Lower we Class year. continue and year. and of range total, quarter. On the segment was XX% expected are to B build ] as a current to in A, actions and segment fourth revenue. Improved volumes, prior headwinds businesses, and and lower produce the ] $XXX realization, to achieve align B the and and half terminal performance the in line doesn't actions Class Fire unit towable to increasing expected labor revenue remain adjusted focus segment of we half resulting along million X, offset the partially of margin businesses efficiencies, level were the to market of is with Class rates savings, by sales Class of segment in bus production discounting, total which market improved will the to improve segment demand. To businesses result order low total category pressures A backlog, certain B discounting executed adjusted shipments $XXX.X lower cancellations. Backlog cost year-over-year. [ Class to exiting XX% year, exiting months X we operational primarily price expected combined unit increased businesses and and Class

anticipates XX% and expected compared the compared Full to to high segment double at We're prior prior down in be guidance. actions points cost to XXX segment update is outlook improve the guidance. Lower half Our to X% consolidated as quarter. expected versus digits the the now to year quarter of to XX% EBITDA margin, single X.X% adjusted in approximately remainder margin the to down rate low second is year-over-year Recreational second the discounting under the impact to for revenue year. the digits basis of be run second the Vehicles our

and including on to XXXX, and to receivable a accounts $XXX April an Increase was lower at increase offset advances, X. the Turning working Slide The Trade accounts inventory. Year-to-date $X.X a as used by million. was customer million of XXXX. $XXX.X primarily XX, million, including quarter end payable of to $XXX fiscal in million, decrease of October cash partially of by spent result April XXXX. on XX cash operating hand capital of expenditures. compared was of million on $X.X $XXX.X million of compared Adjusted within capital was $XX.X million million Net free as was $XX.X debt $XX.X net XX, million, cash activities flow debt the

we share February to from within gross earlier, proceeds noted the a Collins Mark common million, XX, of shares repurchased regular cash XX%. per the addition quarter. essentially Bus in sale February of to a dividend. Then million common As returned quarterly On the of reducing of million, of total dividend by second $XXX all XXXX special shareholders for on outstanding total we we $XXX paid fiscal X versus XX, stock, shares $XXX million our totaling year-end $X

In quarter's approximately million July $X.XX regular to of revolving for XX addition, cash company the At available of June XX. credit initiatives record we declared ample $XXX on shareholders maintained share quarterly on liquidity a to ABL strategic end, dividend per facility. our payable under

to an its of partially for provide the fiscal the reduction and updated resulting our low update to guidance manage to a market RV end the an year segment, momentum Vehicles improvement of $X.X end Turning second the $XXX line $XXX a within the at Recreational businesses the we or guidance $XXX today to adjusted is reflects which XX% decremental earnings billion for includes Specialty and million within and revenue full the X, quarter update total Vehicles greater-than-expected range the $XXX billion, of weakness EBITDA terminal million million at top million segment. Today's impact guidance builds $X to midpoint, outlook, $X.X by truck XXXX as approximate of we account offset to performance. The Slide upon million margin. range cyclical which

year performance expected costs related capital Fire in our of earnings investing excludes activities of the in expenditures cash range provides range full cash the raise in cash is to range of remain cash million consolidated the these statement income the of be to section flow. Expected income million the that divestiture headwinds, the million gross flow $XXX the will confidence net $XX & tax and which million. from operations but offset adjusted is be of proceeds of presented to that flow more the $XX in are $XXX year included Emergency $XX $XX within by Note offset of the the businesses full outlook. Adjusted transaction However, $XX than the range net $XX interest that to we expect of call. cash to up Thank Adjusted to the $XX million free for and million. like of and $XX in million today approximately free million the million. million the expected now to us million again open be expected is expense $XX we call to for Operator, would to joining you to on questions. midpoint

Operator

with [Operator Revich Instructions] Our Goldman is Jerry question first Sachs. from

Jerry Revich

[ is up pricing quarter? And what versus higher compared is delivering? pricing on was Emergency, Williams today booking how Fire in & how In then to on the you're Jerry. This we're for booking ] Clay you're much much where today

Amy Campbell

and were And today last taken increases in the are you at think [ that, and to if price emergency, look So price at say XX%. total I sales units of between up fire & favorable I units evenly years. XX% way we've sales, how about look we're the today, delta and then over mix the that think the quarter. price versus would the setback think up at you pretty couple is the were one of split think I ] shipping And if the about

midyear few those X% inning normalized started or in price we're through sixth more in in we X% as the through Over years, when annual increases increases. combined we've Ambulance, the about about we're a take through to got about of we the to those to work price XXXX XX% fire, increases inning last And working increases. fifth and fourth third pricing of

Jerry Revich

Great. in the back Super EBITDA normal at margins, helpful. to margins looking than it the imply half. midpoint the weaker of then And seasonality seems lastly, outlook on

curious double-clicking math? if specific there's or our drivers Just there any just

Amy Campbell

Yes.

margins, I check speaking double as Specialty you just Clay? look the to to are for you from the the Vehicles second sequentially -- quarter think math,

Jerry Revich

as company the basis. a seasonality for half for on second Just whole a normal margins sequential

Amy Campbell

Starting with Specialty Vehicle margins.

XXX the to increase to to basis third quarter, from EBITDA to X.X% third expect then quarter the and margin We and EBITDA fourth X% quarter should consistent, bps be another about quarter the the from for second to quarter, margins third XX XXX recreation full fairly year. points the

Jerry Revich

as think so your I we're just -- up check well. sequentially, Yes, actually

Operator

Shlisky next Davidson. is from Our question Mike D.A. with

Michael Shlisky

quick first if thoughts side on us can a do the question bit outlook? recreation an have things recreation. XXXX there you year cost next out there Can for the up soft? side the in give some that or on you potential margin Maybe make might Are mix orders started on just margin the a year

Mark Skonieczny

Yes.

I think going now. [indiscernible]. again choppy the market and feel We're not to XX provide

I in to have everyone we of see which year, think half happen from perspective. So is what's going back to the the talking an industry

appropriate at the So the year of be I this think to in back give time. happened anything from a XX wouldn't what until we half see

Michael Shlisky

over can to I & it just turn Fire Emergency. Perhaps

now and every in S-XXX. at of with you [ I Are the point you supply months. -- And you XX how mentioned where the know some have point, At there's had ] been in You been last the within time? with the [indiscernible] this Spartan delivering that put days interest customers product successful chain now over can deliver couple the quarters. some [indiscernible] X can

Mark Skonieczny

Yes, we've buying is that in a And way doing for that. that, sure. the have Mike we actually -- facilities of our done X we've dedicated

we've invested line having So a line our facilities. dedicated X product as in within well of as that

times. is within that lead -- the those meeting are we So

Michael Shlisky

pandemic. prior peak the the rates But are to are you the run had major maybe can passed I'm just the perhaps chain any from perhaps and had other you fire faster rate models, mentioned from run in peak? that Then the you here, off trying rates figure And issues. run was How there? supply you of you much outside best make out far seen the how what prior

Mark Skonieczny

the off. still to improvement. we're the about guidance that momentum continued A X like expect and of But back up again, still fire throughput Ambulance is X today half. months in is far lot Yes. [indiscernible] we the talking we We're catching where is talked and fire about, the not that in to behind

demonstrate So the that again, throughput say how Spartan good of pre-COVID, to about doubled [ at we from ]. quoted feel I from year. it's would of we're we've perspective, just the back going in obviously half But momentum the our at. the we're And we've that where

[indiscernible] look when when pre-COVID levels you the the they've you our actually can able to what we're So at overall, up do. been include facilities,

Amy Campbell

would both that in guide the that of for that record suggest Florida, add, quarters plan. shipments, facility be the that ], just Ocala I would And Mike, third quarters guide would fourth the [ for and

Operator

next is Baird. from question Our with Dobre Mircea

Mircea Dobre

Amy, with I look you to again. forward working

great. trying the guess your make for I'm your a lot to that's contained because moving So clear are -- moving here. here to is of the kind pieces pieces what commentary myself of I guidance

put out but also So terminal that there how lower, RV revenue impact an finer [ can is of these that all terms of & in much can offset like know ]. of is what's is divested sounds we was, point on Fire moving here? It factors, the we a in kind don't I you truck Emergency partial parse lower. Fire dealership please?

Amy Campbell

we terminal guide $XXX how lower, $XX about guided $XX million think million to the million. math additional business that lower. way recreation, our a trucks and million down about midpoint the we think it, an And million, $XXX works to $XX out I of down took

specialty $XX million the be year. the the in million so then of And is vehicles $XX about to a the back in to increase offset in half it the second that business? And quarter

Mircea Dobre

still a where throughput. couple to you're in bit making throughput to your sounds the being relative normal, And able you of at you talking In a was good time, Mark, F&E, consider it strides we normal. ago increase to below months quite what about be and just were are like

of curious know So to this you be throughput 'XX fiscal going is kind I'm based what of on kind exiting what today?

Mark Skonieczny

Like I where and you been be. to know we talking Amylin [ said, about XX% ] we've think we where to that's want in XX% is

expecting we to like side. when where talk about fire about, that Amy So catch talked fires to we're up

room still So F&E line more but legacy we'd across to be in we expect got to there. [indiscernible] with Fire business, exiting go

a expecting [indiscernible] as And nice to second in half we're we Amy are slowly said, build So up. here. definitely catching

double-digit then So that exit expect businesses opportunity to as but we're about not beyond I are XX% talking to at there both exiting that aligned we're XX% we're efficiency. aligned, more fully have margin we that we that back and low

Mircea Dobre

about to where When was in or for we start in trying existing to add you $XX of your is capacity F&E, Or further issue additional CapEx we're there whatnot? that's do need get what run you into footprint kind because today thinking at. million Yes, production I a potential volume? to increase to

Mark Skonieczny

plants, our a actually you right, No, that XXs, of [ right? from have we no. we capacity And of majority nothing [indiscernible], of There's second if as theoretical of a ] we've run perspective. side, but not So minimum enter X perspective. as in, know, increase we double, shifts ramp and say, that there some is second assembly the on our fabrication, opportunity businesses, from ship, added or we in welding paint to

the previously, current right, stabilized is what again, I of we of fire back that. go talked meet then to expectations in the from off about increase So into want the and and rates there building and do heading 'XX, half as to the

our stable the rate to do as to we look to get rates at at want we're at at and at we mine So we ships those our look and opportunities forward. need increase move facilities can then we

Mircea Dobre

incoming what the for fact [ for is exceed obviously, your this outlook to based not recreation. side continues differently. a I'm Then you little question to Mike's in by based revenues you to come on how ] again going on to lower revised you me we the to maybe see $XXX bit here. seems on going here, and continue think difficult differently or mean, it's just the think is million embedded what in are that see pivoting revenue try year. intake. And be I to order do should down backlog here But like The wondering XXXX implications ask I'm guess shipments your down differently, I contracting, what's your today? backlog to it your

Mark Skonieczny

a the really And a market you're back. [ wait But does discussion come now being from don't X,XXX-unit like and half a back and which a right. back market. we XX,XXX and the crystal have business we A Cs, again, on [indiscernible], Bs it's year, on this a [indiscernible] feel a and half, have that from of month perspective. ] quoting see In not exactly versus they're unfortunately, RVIs ball the backlog, the that's unit entering

are know, to it's that ] of this less the the [indiscernible] QX. as well. We're as back a right? So [indiscernible] look back up, well. provider the space. -- ] and the backlog. thing retraction same [ as [ a coming people Towables a into is order and A sort than shorter So trailers, [ Those QX. [indiscernible] about backlog, we really towable know feel are that seen our we've picking of but the X-month ] half, you length half not as you that [ the we premium to talked until as the their what and to you really get build what -- backlog we've order in earnings about if trailers to -- and Towables around -- C reflection to again, came more at intend and towables I ability we're at generate shorter, really the we're managing ] that when our there. backlog We a in stick extent where a ] and coming see look really in the good in that B our they're entering market And a rates we It's business, still. low operating the going up at in on cost back at [ we're And the rates -- ]. It's be business the at But morning the and, see are position continue business more are towables Towables A within is margin, QX [ have build the to lower-end seeing within 'XX. and are

of business industry. as yes, an haven't in -- side uptick just the seen premium that the we So

Mircea Dobre

in get correct a the we based maybe on you cost here, if margins with to structure wrong. [ kind with that and That's and ] I'm doing interpolating on both of on too the manage question towables that relative Final towables above What recreation. this me bad. Considering A ], actions Class how a half? 'XX you're what still in your is but implies the are challenges X.X% here? Class A to 'XX second having not in you're context Can I breakeven. I'm margin restructuring especially more that guess [ could little go-forward exactly basis carry into

Mark Skonieczny

continue well we've those. we've a to across flag cost at as about, And we've people also again, taken as talked fixed but our addressing and structure out, of cost amount we significant looked our that,

but So only we've taken to as labor, a just we've been [indiscernible] proactive our of -- come the get managing and business of normalized not the SG&A out cost down, businesses more backlog direct are have that. those appropriate very indirect to

to when So gotten make had at which haven't played to losses to businesses and previously anticipated volume a really comes sure, look our and work bottom as ahead to advantage say, we way the let's we've drop that challenge like your you back, collectively. then we our those or so we've incurred to of bigger up it has run point the ourselves

structure, we with a uptick of companies structures coming the these unfortunately, new run seen the to perspective we really I is saw as been strategic that cost which is to and are piece We bottom our work just see the there, the then we'll market operating think So we way margin businesses at. forward that's the our challenged cost And that down. upside that go from the haven't with new up.

Operator

for questions, conclude Thank conference. we today's with your And participation. further no you will

may now disconnect. You

REV (REVG) 5 Jun 242024 Q2 Earnings call transcript