REV Group Inc. (REVG) reported results for its fiscal first quarter, ended Jan. 31, representing the company’s first issuance of earnings since being listed on NASDAQ. Through its RV division, REV Group builds motorhomes under the Fleetwood, Holiday Rambler, Monaco, American Coach and Renegade RV brands.
Consolidated net sales in the first quarter of 2017 were $442.9 million, growing 18.8% over the first quarter 2016. The increase was driven predominately by strong growth in its Fire & Emergency and Recreation segments. REV Group also had strong growth in first quarter 2017 in aftermarket parts sales, which grew 10.4% over first quarter 2016 as the company continues to execute on its growth strategies.
The Milwaukee-based company’s first quarter 2017 net loss was $13.3 million, or 26 cents per diluted share. The net loss was negatively impacted by a number of one-time items which included a $25.5 million before-tax stock compensation charge, due to its initial public offering (IPO) for stock options awarded prior to the IPO. REV Group’s IPO took place on Jan. 27 and closed on Feb. 1. Adjusted net income for the first quarter was $5.7 million, or 11 cents per diluted share, compared to $3.9 million, or 7 cents per diluted share in the first quarter of fiscal 2016.
Adjusted EBITDA in the first quarter 2017 was $21.1 million, representing growth of 40.4% over adjusted EBITDA of $15 million in the first quarter 2016. The increase in Adjusted EBITDA was driven by a number of factors including higher vehicle sales, strong aftermarket parts sales, lower discounts for certain vehicle categories, and ongoing procurement and production cost optimization efforts.
REV Group President and CEO, Tim Sullivan said, “We are pleased to report strong results for our initial quarter as a public company. Our first quarter 2017 results demonstrate solid execution of the ongoing plan to scale our 27 market-leading specialty vehicle brands and meet our long-term target of generating company-wide Adjusted EBITDA margins of 10%. Our strategic efforts to increase profitability were evident in our results. Sales growth was driven by strong end-market demand, gains in market share and our new product initiatives. Our strong results serve as a testament to the hard work of our employees who are executing our strategies on a daily basis.”