REV Group, Inc. Reports Strong Third Quarter Results, Updates Fiscal 2024 Outlook
-
Third quarter net sales of
$579.4 million compared to$680.0 million in the prior year quarter -
Third quarter net income of
$18.0 million compared to net income of$14.9 million in the prior year quarter -
Third quarter Adjusted EBITDA1 of
$45.2 million compared to$39.4 million in the prior year quarter, the latter of which included$9.2 million of Adjusted EBITDA attributable toCollins Bus Corporation (“Collins”) which was divested onJanuary 26, 2024 -
Excluding the impact of the Collins divestiture, Adjusted EBITDA increased
$15.0 million , or 49.7% compared to the prior year quarter.
-
Excluding the impact of the Collins divestiture, Adjusted EBITDA increased
-
Third quarter Adjusted Net Income1 of
$24.8 million compared to$20.9 million in the prior year quarter -
Updated full-year fiscal 2024 outlook:
-
Net sales of
$2.35 to$2.45 billion , net income of$226.0 to$240.0 million , Adjusted EBITDA of$155.0 to$165.0 million , and Adjusted Net Income of$76.0 to$89.0 million ; -
Net cash from operating activities of
$20.0 to$36.0 million , which includes approximately$71.0 million of income tax and transaction costs related to divestiture activities, and Adjusted Free Cash Flow1 of$61.0 to$72.0 million
-
Net sales of
The company’s third quarter 2024 net income was
“We are pleased with the results of the Specialty Vehicles segment, which delivered double digit Adjusted EBITDA margin performance in the third quarter,”
____________________ |
1 Adjusted Net Income, Adjusted EBITDA and Adjusted Free Cash Flow are non-GAAP measures that are reconciled to their nearest GAAP measure later in this release. |
REV Group Third Quarter Segment Highlights
Specialty Vehicles Segment Highlights
Specialty Vehicles segment net sales were
Specialty Vehicles segment Adjusted EBITDA was
Recreational Vehicles Segment Highlights
Recreational Vehicles segment net sales were
Recreational Vehicles segment Adjusted EBITDA was
Working Capital, Liquidity, and Capital Allocation
Net debt2 totaled
Updated Fiscal Year 2024 Outlook
|
|
Full Fiscal Year 2024 |
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Updated Guidance |
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Prior Guidance4 |
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($ in millions) |
|
Low |
|
|
High |
|
|
|
Low |
|
|
High |
|
||||
|
|
$ |
2,350 |
|
|
$ |
2,450 |
|
|
|
$ |
2,400 |
|
|
$ |
2,500 |
|
Net Income |
|
$ |
226 |
|
|
$ |
240 |
|
|
|
$ |
230 |
|
|
$ |
245 |
|
Adjusted EBITDA |
|
$ |
155 |
|
|
$ |
165 |
|
|
|
$ |
151 |
|
|
$ |
165 |
|
Adjusted Net Income |
|
$ |
76 |
|
|
$ |
89 |
|
|
|
$ |
76 |
|
|
$ |
90 |
|
Adjusted Free Cash Flow |
|
$ |
61 |
|
|
$ |
72 |
|
|
|
$ |
61 |
|
|
$ |
72 |
|
Quarterly Dividend
The company’s board of directors declared a regular quarterly cash dividend in the amount of
__________________ |
2 Net Debt is defined as total debt less cash and cash equivalents. |
3
|
4 Guidance from the 2Q fiscal year 2024 results announcement, as presented in our press release dated |
Conference Call
A conference call to discuss the company’s third quarter 2024 financial results and our outlook is scheduled for
About
Note Regarding Non-GAAP Measures
The company reports its financial results in accordance with
The company believes that the use of Adjusted EBITDA, Adjusted Net Income and Adjusted Free Cash Flow provide additional meaningful methods of evaluating certain aspects of its operating performance from period to period on a basis that may not be otherwise apparent under GAAP when used in addition to, and not in lieu of, GAAP measures. A reconciliation of Adjusted EBITDA, Adjusted Net Income and Adjusted Free Cash Flow to the most closely comparable financial measures calculated in accordance with GAAP is included in the back of this news release.
Cautionary Statement About Forward-Looking Statements
This news release contains statements that the company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. This news release includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements.” These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “strives,” “goal,” “seeks,” “projects,” “intends,” “forecasts,” “outlook,” “guidance,” “plans,” “may,” “will” or “should” or, in each case, their negative or other variations or comparable terminology. They appear in a number of places throughout this news release and include statements regarding our intentions, beliefs, goals or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the industries in which we operate, including REV Group’s outlook for the full fiscal year 2024.
Our forward-looking statements are subject to risks and uncertainties, including those highlighted under “Risk Factors” and “Cautionary Statement on Forward-Looking Statements” in the company’s annual report on Form 10-K, and in the company’s subsequent quarterly reports on Form 10-Q, together with the company’s other filings with the
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CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEETS |
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(In millions, except share amounts) |
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|
|
|
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(Audited) |
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||
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ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
50.5 |
|
|
$ |
21.3 |
|
Accounts receivable, net |
|
|
201.4 |
|
|
|
226.5 |
|
Inventories, net |
|
|
632.3 |
|
|
|
657.7 |
|
Other current assets |
|
|
30.2 |
|
|
|
27.7 |
|
Total current assets |
|
|
914.4 |
|
|
|
933.2 |
|
Property, plant and equipment, net |
|
|
147.2 |
|
|
|
159.5 |
|
|
|
|
137.7 |
|
|
|
157.3 |
|
Intangible assets, net |
|
|
95.9 |
|
|
|
115.7 |
|
Right of use assets |
|
|
33.3 |
|
|
|
37.0 |
|
Other long-term assets |
|
|
6.2 |
|
|
|
7.7 |
|
Total assets |
|
$ |
1,334.7 |
|
|
$ |
1,410.4 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
196.6 |
|
|
$ |
208.3 |
|
Short-term customer advances |
|
|
155.1 |
|
|
|
214.5 |
|
Short-term accrued warranty |
|
|
15.7 |
|
|
|
23.4 |
|
Short-term lease obligations |
|
|
7.3 |
|
|
|
7.4 |
|
Other current liabilities |
|
|
118.6 |
|
|
|
103.6 |
|
Total current liabilities |
|
|
493.3 |
|
|
|
557.2 |
|
Long-term debt |
|
|
215.0 |
|
|
|
150.0 |
|
Long-term customer advances |
|
|
159.3 |
|
|
|
142.9 |
|
Deferred income taxes |
|
|
8.8 |
|
|
|
8.2 |
|
Long-term lease obligations |
|
|
26.8 |
|
|
|
30.0 |
|
Other long-term liabilities |
|
|
36.9 |
|
|
|
24.1 |
|
Total liabilities |
|
|
940.1 |
|
|
|
912.4 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Shareholders' Equity: |
|
|
|
|
|
|
||
Preferred stock ( |
|
|
— |
|
|
|
— |
|
Common stock ( |
|
|
0.1 |
|
|
|
0.1 |
|
Additional paid-in capital |
|
|
314.5 |
|
|
|
445.0 |
|
Retained earnings |
|
|
80.0 |
|
|
|
52.7 |
|
Accumulated other comprehensive income |
|
|
— |
|
|
|
0.2 |
|
Total REV's shareholders' equity |
|
|
394.6 |
|
|
|
498.0 |
|
Total liabilities and shareholders' equity |
|
$ |
1,334.7 |
|
|
$ |
1,410.4 |
|
|
|
|
|
|
|
|
|
||||||||||||||||
CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||||||
(In millions, except share and per share amounts) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net sales |
|
$ |
579.4 |
|
|
$ |
680.0 |
|
|
$ |
1,782.3 |
|
|
$ |
1,944.7 |
|
Cost of sales |
|
|
501.1 |
|
|
|
599.8 |
|
|
|
1,563.8 |
|
|
|
1,724.1 |
|
Gross profit |
|
|
78.3 |
|
|
|
80.2 |
|
|
|
218.5 |
|
|
|
220.6 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general and administrative |
|
|
42.6 |
|
|
|
53.9 |
|
|
|
148.1 |
|
|
|
174.1 |
|
Amortization of intangible assets |
|
|
0.5 |
|
|
|
0.6 |
|
|
|
1.7 |
|
|
|
3.0 |
|
Restructuring |
|
|
4.7 |
|
|
|
— |
|
|
|
9.2 |
|
|
|
— |
|
Impairment charges |
|
|
1.9 |
|
|
|
— |
|
|
|
14.5 |
|
|
|
— |
|
Total operating expenses |
|
|
49.7 |
|
|
|
54.5 |
|
|
|
173.5 |
|
|
|
177.1 |
|
Operating income |
|
|
28.6 |
|
|
|
25.7 |
|
|
|
45.0 |
|
|
|
43.5 |
|
Interest expense, net |
|
|
7.6 |
|
|
|
7.3 |
|
|
|
21.0 |
|
|
|
21.9 |
|
(Gain) Loss on sale of business |
|
|
(1.4 |
) |
|
|
— |
|
|
|
(260.4 |
) |
|
|
1.1 |
|
Other expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.7 |
|
Income before provision for income taxes |
|
|
22.4 |
|
|
|
18.4 |
|
|
|
284.4 |
|
|
|
19.8 |
|
Provision for income taxes |
|
|
4.4 |
|
|
|
3.5 |
|
|
|
68.5 |
|
|
|
4.2 |
|
Net income |
|
$ |
18.0 |
|
|
$ |
14.9 |
|
|
$ |
215.9 |
|
|
$ |
15.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.35 |
|
|
$ |
0.25 |
|
|
$ |
3.96 |
|
|
$ |
0.27 |
|
Diluted |
|
|
0.35 |
|
|
|
0.25 |
|
|
|
3.91 |
|
|
|
0.26 |
|
Dividends declared per common share |
|
|
0.05 |
|
|
|
0.05 |
|
|
|
3.15 |
|
|
|
0.15 |
|
|
|
|
|
|
|
|
|
|
|
|
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|
||||
Adjusted net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.48 |
|
|
$ |
0.36 |
|
|
$ |
1.11 |
|
|
$ |
0.83 |
|
Diluted |
|
|
0.48 |
|
|
|
0.35 |
|
|
|
1.09 |
|
|
|
0.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted Average Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
51,514,327 |
|
|
|
58,730,037 |
|
|
|
54,571,246 |
|
|
|
58,588,712 |
|
Diluted |
|
|
52,136,498 |
|
|
|
59,155,217 |
|
|
|
55,163,877 |
|
|
|
59,041,350 |
|
|
||||||||
CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(In millions) |
||||||||
|
|
Nine Months Ended
|
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
215.9 |
|
|
$ |
15.6 |
|
Adjustments to reconcile net income to net cash (used in) provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
19.4 |
|
|
|
19.7 |
|
Stock-based compensation expense |
|
|
7.8 |
|
|
|
11.0 |
|
Deferred income taxes |
|
|
0.6 |
|
|
|
(2.4 |
) |
Impairment charges |
|
|
14.5 |
|
|
|
— |
|
(Gain) Loss on sale of business |
|
|
(260.4 |
) |
|
|
1.1 |
|
Other non-cash adjustments |
|
|
(0.2 |
) |
|
|
1.4 |
|
Changes in operating assets and liabilities, net |
|
|
(12.8 |
) |
|
|
27.0 |
|
Net cash (used in) provided by operating activities |
|
|
(15.2 |
) |
|
|
73.4 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchase of property, plant and equipment |
|
|
(22.3 |
) |
|
|
(19.7 |
) |
Proceeds from sale of business |
|
|
319.6 |
|
|
|
0.6 |
|
Other investing activities |
|
|
4.5 |
|
|
|
1.1 |
|
Net cash provided by (used in) investing activities |
|
|
301.8 |
|
|
|
(18.0 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Net proceeds (payments) from borrowings on revolving credit facility |
|
|
65.0 |
|
|
|
(51.0 |
) |
Payment of dividends |
|
|
(188.6 |
) |
|
|
(9.1 |
) |
Repurchase and retirement of common stock |
|
|
(126.1 |
) |
|
|
— |
|
Other financing activities |
|
|
(7.7 |
) |
|
|
(4.7 |
) |
Net cash used in financing activities |
|
|
(257.4 |
) |
|
|
(64.8 |
) |
Net increase (decrease) in cash and cash equivalents |
|
|
29.2 |
|
|
|
(9.4 |
) |
Cash and cash equivalents, beginning of period |
|
|
21.3 |
|
|
|
20.4 |
|
Cash and cash equivalents, end of period |
|
$ |
50.5 |
|
|
$ |
11.0 |
|
|
|
|
|
|
|
|
||
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
||
Cash paid for: |
|
|
|
|
|
|
||
Interest |
|
$ |
17.8 |
|
|
$ |
18.5 |
|
Income taxes, net of refunds |
|
$ |
69.6 |
|
|
$ |
7.0 |
|
|
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SEGMENT INFORMATION |
||||||||||||||||
(In millions; unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Specialty Vehicles |
|
$ |
432.1 |
|
|
$ |
466.2 |
|
|
$ |
1,286.7 |
|
|
$ |
1,249.2 |
|
Recreational Vehicles |
|
|
147.4 |
|
|
|
214.5 |
|
|
|
496.5 |
|
|
|
697.1 |
|
Corporate & Other |
|
|
(0.1 |
) |
|
|
(0.7 |
) |
|
|
(0.9 |
) |
|
|
(1.6 |
) |
Total |
|
$ |
579.4 |
|
|
$ |
680.0 |
|
|
$ |
1,782.3 |
|
|
$ |
1,944.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Specialty Vehicles |
|
$ |
44.3 |
|
|
$ |
29.7 |
|
|
$ |
104.3 |
|
|
$ |
55.2 |
|
Recreational Vehicles |
|
|
9.4 |
|
|
|
18.4 |
|
|
|
33.1 |
|
|
|
71.9 |
|
Corporate & Other |
|
|
(8.5 |
) |
|
|
(8.7 |
) |
|
|
(24.2 |
) |
|
|
(24.5 |
) |
Total |
|
$ |
45.2 |
|
|
$ |
39.4 |
|
|
$ |
113.2 |
|
|
$ |
102.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Specialty Vehicles |
|
|
10.3 |
% |
|
|
6.4 |
% |
|
|
8.1 |
% |
|
|
4.4 |
% |
Recreational Vehicles |
|
|
6.4 |
% |
|
|
8.6 |
% |
|
|
6.7 |
% |
|
|
10.3 |
% |
Total |
|
|
7.8 |
% |
|
|
5.8 |
% |
|
|
6.4 |
% |
|
|
5.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Period-End Backlog: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Specialty Vehicles |
|
$ |
4,114.4 |
|
|
$ |
4,064.4 |
|
|
$ |
3,864.1 |
|
|
$ |
3,728.2 |
|
Recreational Vehicles |
|
|
240.3 |
|
|
|
274.7 |
|
|
|
376.7 |
|
|
|
408.6 |
|
Total |
|
$ |
4,354.7 |
|
|
$ |
4,339.1 |
|
|
$ |
4,240.8 |
|
|
$ |
4,136.8 |
|
|
||||||||||||||||
ADJUSTED EBITDA BY SEGMENT |
||||||||||||||||
(In millions; unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||
|
|
Specialty
|
|
|
Recreational
|
|
|
Corporate
|
|
|
Total |
|
||||
Net income (loss) |
|
$ |
32.5 |
|
|
$ |
5.6 |
|
|
$ |
(20.1 |
) |
|
$ |
18.0 |
|
Depreciation and amortization |
|
|
4.1 |
|
|
|
1.8 |
|
|
|
0.5 |
|
|
|
6.4 |
|
Interest expense, net |
|
|
2.7 |
|
|
|
0.1 |
|
|
|
4.8 |
|
|
|
7.6 |
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
4.4 |
|
|
|
4.4 |
|
EBITDA |
|
|
39.3 |
|
|
|
7.5 |
|
|
|
(10.4 |
) |
|
|
36.4 |
|
Restructuring costs |
|
|
4.7 |
|
|
|
— |
|
|
|
— |
|
|
|
4.7 |
|
Restructuring related charges |
|
|
1.7 |
|
|
|
— |
|
|
|
— |
|
|
|
1.7 |
|
Impairment charges |
|
|
— |
|
|
|
1.9 |
|
|
|
— |
|
|
|
1.9 |
|
Stock-based compensation expense |
|
|
— |
|
|
|
— |
|
|
|
1.9 |
|
|
|
1.9 |
|
Gain on sale of business |
|
|
(1.4 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1.4 |
) |
Adjusted EBITDA |
|
$ |
44.3 |
|
|
$ |
9.4 |
|
|
$ |
(8.5 |
) |
|
$ |
45.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|||||||||||||
|
|
Specialty
|
|
|
Recreational
|
|
|
Corporate
|
|
|
Total |
|
||||
Net income (loss) |
|
$ |
22.0 |
|
|
$ |
16.6 |
|
|
$ |
(23.7 |
) |
|
$ |
14.9 |
|
Depreciation and amortization |
|
|
4.0 |
|
|
|
1.7 |
|
|
|
0.6 |
|
|
|
6.3 |
|
Interest expense, net |
|
|
2.5 |
|
|
|
0.1 |
|
|
|
4.7 |
|
|
|
7.3 |
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
3.5 |
|
|
|
3.5 |
|
EBITDA |
|
|
28.5 |
|
|
|
18.4 |
|
|
|
(14.9 |
) |
|
|
32.0 |
|
Transaction expenses |
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
0.1 |
|
Restructuring related charges |
|
|
0.4 |
|
|
|
— |
|
|
|
1.5 |
|
|
|
1.9 |
|
Stock-based compensation expense |
|
|
— |
|
|
|
— |
|
|
|
3.5 |
|
|
|
3.5 |
|
Legal matters |
|
|
— |
|
|
|
— |
|
|
|
1.1 |
|
|
|
1.1 |
|
Other items |
|
|
0.8 |
|
|
|
— |
|
|
|
— |
|
|
|
0.8 |
|
Adjusted EBITDA |
|
$ |
29.7 |
|
|
$ |
18.4 |
|
|
$ |
(8.7 |
) |
|
$ |
39.4 |
|
|
||||||||||||||||
ADJUSTED EBITDA BY SEGMENT |
||||||||||||||||
(In millions; unaudited) |
||||||||||||||||
|
|
Nine Months Ended |
|
|||||||||||||
|
|
Specialty
|
|
|
Recreational
|
|
|
Corporate
|
|
|
Total |
|
||||
Net income (loss) |
|
$ |
312.7 |
|
|
$ |
25.9 |
|
|
$ |
(122.7 |
) |
|
$ |
215.9 |
|
Depreciation & amortization |
|
|
12.8 |
|
|
|
5.0 |
|
|
|
1.6 |
|
|
|
19.4 |
|
Interest expense, net |
|
|
7.3 |
|
|
|
0.3 |
|
|
|
13.4 |
|
|
|
21.0 |
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
68.5 |
|
|
|
68.5 |
|
EBITDA |
|
|
332.8 |
|
|
|
31.2 |
|
|
|
(39.2 |
) |
|
|
324.8 |
|
Transaction expenses |
|
|
— |
|
|
|
— |
|
|
|
6.4 |
|
|
|
6.4 |
|
Sponsor expense reimbursement |
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
0.2 |
|
Restructuring costs |
|
|
9.2 |
|
|
|
— |
|
|
|
— |
|
|
|
9.2 |
|
Restructuring related charges |
|
|
7.8 |
|
|
|
— |
|
|
|
— |
|
|
|
7.8 |
|
Impairment charges |
|
|
12.6 |
|
|
|
1.9 |
|
|
|
— |
|
|
|
14.5 |
|
Stock-based compensation expense |
|
|
— |
|
|
|
— |
|
|
|
7.8 |
|
|
|
7.8 |
|
Legal matters |
|
|
2.3 |
|
|
|
— |
|
|
|
0.6 |
|
|
|
2.9 |
|
Gain on sale of business |
|
|
(260.4 |
) |
|
|
— |
|
|
|
— |
|
|
|
(260.4 |
) |
Adjusted EBITDA |
|
$ |
104.3 |
|
|
$ |
33.1 |
|
|
$ |
(24.2 |
) |
|
$ |
113.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Nine Months Ended |
|
|||||||||||||
|
|
Specialty
|
|
|
Recreational
|
|
|
Corporate
|
|
|
Total |
|
||||
Net income (loss) |
|
$ |
29.5 |
|
|
$ |
64.9 |
|
|
$ |
(78.8 |
) |
|
$ |
15.6 |
|
Depreciation & amortization |
|
|
11.7 |
|
|
|
6.3 |
|
|
|
1.7 |
|
|
|
19.7 |
|
Interest expense, net |
|
|
7.3 |
|
|
|
0.2 |
|
|
|
14.4 |
|
|
|
21.9 |
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
4.2 |
|
|
|
4.2 |
|
EBITDA |
|
|
48.5 |
|
|
|
71.4 |
|
|
|
(58.5 |
) |
|
|
61.4 |
|
Transaction expenses |
|
|
— |
|
|
|
— |
|
|
|
0.5 |
|
|
|
0.5 |
|
Sponsor expense reimbursement |
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
0.2 |
|
Restructuring related charges |
|
|
4.1 |
|
|
|
— |
|
|
|
6.4 |
|
|
|
10.5 |
|
Stock-based compensation expense |
|
|
— |
|
|
|
— |
|
|
|
11.0 |
|
|
|
11.0 |
|
Legal matters |
|
|
0.9 |
|
|
|
0.5 |
|
|
|
15.2 |
|
|
|
16.6 |
|
Loss on sale of business |
|
|
1.1 |
|
|
|
— |
|
|
|
— |
|
|
|
1.1 |
|
Other items |
|
|
0.6 |
|
|
|
— |
|
|
|
0.7 |
|
|
|
1.3 |
|
Adjusted EBITDA |
|
$ |
55.2 |
|
|
$ |
71.9 |
|
|
$ |
(24.5 |
) |
|
$ |
102.6 |
|
|
||||||||||||||||
ADJUSTED NET INCOME |
||||||||||||||||
(In millions; unaudited) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net income |
|
$ |
18.0 |
|
|
$ |
14.9 |
|
|
$ |
215.9 |
|
|
$ |
15.6 |
|
Amortization of intangible assets |
|
|
0.5 |
|
|
|
0.6 |
|
|
|
1.7 |
|
|
|
3.0 |
|
Transaction expenses |
|
|
— |
|
|
|
0.1 |
|
|
|
6.4 |
|
|
|
0.5 |
|
Sponsor expense reimbursement |
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
0.2 |
|
Restructuring costs |
|
|
4.7 |
|
|
|
— |
|
|
|
9.2 |
|
|
|
— |
|
Restructuring related charges |
|
|
1.7 |
|
|
|
1.9 |
|
|
|
7.8 |
|
|
|
10.5 |
|
Impairment charges |
|
|
1.9 |
|
|
|
— |
|
|
|
14.5 |
|
|
|
— |
|
Stock-based compensation expense |
|
|
1.9 |
|
|
|
3.5 |
|
|
|
7.8 |
|
|
|
11.0 |
|
Legal matters |
|
|
— |
|
|
|
1.1 |
|
|
|
2.9 |
|
|
|
16.6 |
|
(Gain) Loss on sale of business |
|
|
(1.4 |
) |
|
|
— |
|
|
|
(260.4 |
) |
|
|
1.1 |
|
Other items |
|
|
— |
|
|
|
0.8 |
|
|
|
— |
|
|
|
1.3 |
|
Income tax effect of adjustments |
|
|
(2.5 |
) |
|
|
(2.0 |
) |
|
|
54.4 |
|
|
|
(11.0 |
) |
Adjusted Net Income |
|
$ |
24.8 |
|
|
$ |
20.9 |
|
|
$ |
60.4 |
|
|
$ |
48.8 |
|
|
||||||||
ADJUSTED EBITDA OUTLOOK RECONCILIATION |
||||||||
(In millions) |
||||||||
|
|
Fiscal Year 2024 |
|
|||||
|
|
Low |
|
|
High |
|
||
Net income (5) |
|
$ |
225.6 |
|
|
$ |
240.0 |
|
Depreciation and amortization |
|
|
26.5 |
|
|
|
24.5 |
|
Interest expense, net |
|
|
28.0 |
|
|
|
26.0 |
|
Provision for income taxes |
|
|
79.3 |
|
|
|
80.9 |
|
EBITDA |
|
|
359.4 |
|
|
|
371.4 |
|
Transaction expenses |
|
|
6.4 |
|
|
|
6.4 |
|
Sponsor expense reimbursement |
|
|
0.2 |
|
|
|
0.2 |
|
Restructuring costs |
|
|
10.7 |
|
|
|
9.7 |
|
Restructuring related charges |
|
|
7.8 |
|
|
|
7.8 |
|
Impairment charges |
|
|
14.5 |
|
|
|
14.5 |
|
Stock-based compensation expense |
|
|
13.5 |
|
|
|
12.5 |
|
Legal matters |
|
|
2.9 |
|
|
|
2.9 |
|
Gain on sale of business |
|
|
(260.4 |
) |
|
|
(260.4 |
) |
Adjusted EBITDA |
|
$ |
155.0 |
|
|
$ |
165.0 |
|
|
||||||||
ADJUSTED NET INCOME OUTLOOK RECONCILIATION |
||||||||
(In millions) |
||||||||
|
|
Fiscal Year 2024 |
|
|||||
|
|
Low |
|
|
High |
|
||
Net income (5) |
|
$ |
225.6 |
|
|
$ |
240.0 |
|
Amortization of intangible assets |
|
|
2.3 |
|
|
|
2.3 |
|
Transaction expenses |
|
|
6.4 |
|
|
|
6.4 |
|
Sponsor expense reimbursement |
|
|
0.2 |
|
|
|
0.2 |
|
Restructuring costs |
|
|
10.7 |
|
|
|
9.7 |
|
Restructuring related charges |
|
|
7.8 |
|
|
|
7.8 |
|
Impairment charges |
|
|
14.5 |
|
|
|
14.5 |
|
Stock-based compensation expense |
|
|
13.5 |
|
|
|
12.5 |
|
Legal matters |
|
|
2.9 |
|
|
|
2.9 |
|
Gain on sale of business |
|
|
(260.4 |
) |
|
|
(260.4 |
) |
Income tax effect of adjustments |
|
|
52.5 |
|
|
|
53.1 |
|
Adjusted Net Income |
|
$ |
76.0 |
|
|
$ |
89.0 |
|
|
||||||||
ADJUSTED FREE CASH FLOW OUTLOOK RECONCILIATION |
||||||||
(In millions) |
||||||||
|
|
Fiscal Year 2024 |
|
|||||
|
|
Low |
|
|
High |
|
||
Net cash provided by operating activities |
|
$ |
20.0 |
|
|
$ |
35.5 |
|
Cash income taxes - divestiture activities |
|
|
66.0 |
|
|
|
66.5 |
|
Transaction expenses - divestiture activities |
|
|
5.0 |
|
|
|
5.0 |
|
Less: Capital expenditures |
|
|
(30.0 |
) |
|
|
(35.0 |
) |
Adjusted Free Cash Flow |
|
$ |
61.0 |
|
|
$ |
72.0 |
|
_________________ |
5 Does not include any non-recurring charges that may occur during the period shown other than those presented in this reconciliation. See “Cautionary Statement About Forward-Looking Statements” above. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240904435126/en/
VP, Investor Relations & Corporate FP&A
Email: investors@revgroup.com
Phone: 1-888-738-4037 (1-888-REVG-037)
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