Market Overview

REV Group, Inc. Reports Fiscal 2017 Fourth Quarter and Full Year Results

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  • Net sales growth of 26 percent, net income growth of 88 percent, and
    Adjusted EBITDA1 growth of 39 percent for the fourth
    quarter versus the comparable quarter in the prior year2
  • Fourth quarter and full fiscal year 2017 net income of $22.7 million
    and $31.4 million, respectively
  • Fourth quarter and full fiscal year 2017 Adjusted EBITDA1
    of $58.4 million and $162.5 million, respectively
  • Reaffirms full-year fiscal 2018 outlook for net sales of $2.4 to $2.7
    billion, and Adjusted EBITDA1 of $200 to $220 million

REV Group, Inc. (NYSE:REVG) today reported results for the three months
ended October 31, 2017 ("fourth quarter 2017"). Consolidated net sales
in the fourth quarter of 2017 were $683.9 million, growing 25.5 percent
over the three months ended October 29, 2016 ("fourth quarter 2016").
This increase was driven by strong growth in the Fire & Emergency and
Recreation segments. Consolidated net sales were $2.27 billion for the
twelve months ended October 31, 2017 ("full year 2017"), which was an
increase of 17.7 percent over the twelve months ended October 29, 2016
("full year 2016").

The Company's fourth quarter 2017 net income was $22.7 million, or $0.35
per diluted share. Adjusted Net Income1 for the fourth
quarter 2017 was $29.2 million, or $0.44 per diluted share, which grew
54.5 percent compared to $18.9 million, or $0.37 per diluted share, in
the fourth quarter 2016 (fourth quarter 2017 diluted earnings per share
is calculated using 14.3 million more shares outstanding than the prior
year quarter). Net income for the full year 2017 was $31.4 million, or
$0.50 per diluted share. Full year 2017 net income was negatively
impacted by several one-time expense items, the largest of which related
to our IPO and subsequent debt refinancings. Full year 2017 Adjusted Net
Income was $75.9 million compared to $53.2 million for the full year
2016, which represents an increase of 42.7 percent resulting from higher
earnings from operations, positive impact from our acquisitions, as well
as lower interest expense.

Adjusted EBITDA1 in the fourth quarter 2017 was
$58.4 million, representing growth of 39.1 percent over Adjusted EBITDA
of $42.0 million in the fourth quarter 2016. A number of factors
including increased vehicle sales, ongoing procurement and production
cost optimization initiatives, strategic pricing actions, and the impact
of acquisitions drove the higher Adjusted EBITDA in the quarter. Full
year 2017 Adjusted EBITDA was $162.5 million, which reflects a 32.3
percent increase over full year 2016.

REV Group, Inc. President and CEO, Tim Sullivan said, "We are pleased to
report another quarter of strong earnings and year-over-year growth. Our
strong fourth quarter completed the first successful year for REV Group
as a public company. The combination of successful commercial and
product strategies, higher sales volumes and our team's focus on
operational improvement initiatives drove improved profit margins across
all our businesses on a year over year basis. I am proud to report 18
percent sales growth and 32 percent growth in Adjusted EBITDA in 2017,
but even more importantly, I am pleased to report that all three of our
segments continue to have strong outlooks. We plan to continue this
trajectory of earnings growth in excess of sales growth into next year.
In summary, it was a strong quarter and year, we are well positioned for
continued growth in fiscal 2018 and we will continue to make progress
towards our enterprise-wide EBITDA margin goal of 10 percent."

REV Group Segment Highlights

Fire & Emergency – Fire & Emergency ("F&E") segment net sales
were $317.6 million for the fourth quarter 2017, an increase of
$73.5 million, or 30.1 percent, from $244.1 million for the fourth
quarter 2016. Net sales of F&E increased due to increased unit sales in
the segment's existing businesses, sales from the Ferrara acquisition in
April 2017, and a greater mix of higher content vehicles, compared to
the prior year period. Excluding the impact of the Ferrara acquisition,
F&E net sales increased 13.8 percent in the fourth quarter 2017 versus
the fourth quarter 2016.

F&E net sales for full year 2017 were $984.0 million, which was an
increase of 28.1 percent over $768.1 million in 2016. F&E backlog at the
end of the fourth quarter 2017 was up 7.2 percent to $590.3 million
compared to $550.8 million at the end of fiscal year 2016. Excluding the
impact of acquisitions year-to-date, F&E net sales increased 8.3 percent
for the full year 2017 compared to 2016.

F&E Adjusted EBITDA2 was $39.3 million in the fourth
quarter 2017, which represented growth of 34.1 percent compared to $29.3
million in the fourth quarter 2016. F&E Adjusted EBITDA growth was
driven by increased vehicle sales, procurement and productivity
initiatives, pricing actions, operational improvements, and the impact
of the Ferrara acquisition. Excluding the impact of the Ferrara
acquisition, fourth quarter Adjusted EBITDA increased 23.0 percent in
2017 versus the fourth quarter of 2016. Fourth quarter 2017 F&E Adjusted
EBITDA margin was 12.4 percent of net sales compared to 12.0 percent in
the fourth quarter 2016.

Full year 2017 Adjusted EBITDA in the F&E segment increased 28.5 percent
to $109.5 million versus $85.2 million for the full year 2016. Excluding
the impact of acquisitions year-to-date, F&E Adjusted EBITDA increased
21.0 percent in 2017 compared to 2016.

Commercial – Commercial segment net sales for the fourth quarter
2017 were $176.0 million, which were down 1.8 percent compared to the
prior year quarter. This decrease was primarily driven by lower sales in
our shuttle bus product category as we continue to be more selective
about which sales opportunities we pursue. We expect this strategy to
pay off in future periods as we build higher quality and higher margin
backlog. Offsetting this reduction were sales increases in other
Commercial product categories during the fourth quarter of 2017 compared
to 2016, including transit buses, terminal trucks and sweepers.

Net sales in the Commercial segment for full year 2017 were $620.1
million versus $679.0 million in the full year 2016, which was a
decrease of 8.7 percent. Commercial backlog grew in the fourth quarter
2017 by 43.8 percent to $366.4 million at October 31, 2017, compared to
$254.8 million at the end of the third quarter 2017, and grew 62.1
percent from the end of the prior year. We have seen a significant
increase in backlog in our Commercial segment this quarter due primarily
to the receipt of the first portion of the recently announced Los
Angeles County transit bus order of 295 buses, which we expect will
start to ship in early fiscal 2019.

Commercial segment Adjusted EBITDA was $14.8 million in the fourth
quarter 2017 compared to $16.1 million in the fourth quarter 2016.
Adjusted EBITDA margin was 8.4 percent of net sales in the fourth
quarter 2017 compared to 9.0 percent in the fourth quarter 2016.
Adjusted EBITDA and Adjusted EBITDA margin declined in the fourth
quarter of 2017 primarily due to the net sales decline described above.

Full year 2017 Adjusted EBITDA in the Commercial segment decreased 5.4
percent to $50.5 million from $53.4 million for the full year 2016, but
Adjusted EBITDA margin as a percent of net sales for full year 2017 was
8.2 percent compared to 7.9 percent for 2016.

Recreation – The Recreation segment grew net sales to
$188.9 million in the fourth quarter 2017, representing an increase of
56.7 percent over the prior year quarter. Recreation segment sales
growth was partially driven by the acquisitions of Renegade RV
("Renegade") and Midwest Automotive Designs ("Midwest") which were
completed on December 30, 2016 and April 13, 2017, respectively.
Recreation net sales excluding the acquisitions of Renegade and Midwest
increased 18.8 percent during the quarter due to increased unit sales
volumes and higher average net selling prices. In addition to the growth
in unit sales for the segment's Class A coaches, the segment also
continues to benefit from expansion of its Class C line of products as
well as overall growth in its end markets.

Recreation net sales for full year 2017 were $659.8 million, which was
an increase of 38.0 percent over net sales of $478.1 million for full
year 2016. Excluding the impact of acquired companies in 2017, full year
Recreation net sales increased 14.5 percent compared to 2016. Recreation
segment backlog at October 31, 2017 was $144.8 million, which was up
80.1 percent from $80.4 million at the end of fiscal year 2016 and up
24.6 percent sequentially from $116.2 million at the end of the third
quarter 2017.

Recreation segment Adjusted EBITDA grew 249.4 percent in the fourth
quarter 2017 to $14.5 million compared to $4.2 million in the fourth
quarter 2016. Adjusted EBITDA margin in the fourth quarter grew 423
basis points to 7.7 percent of net sales compared to 3.4 percent in the
fourth quarter 2016. The strong expansion in profitability is
attributable to higher unit volumes, better product mix and continued
benefit from our ongoing procurement, cost of quality and other
operating initiatives. Excluding the impact of acquisitions, Recreation
Adjusted EBITDA in the fourth quarter 2017 increased 166.8 percent
compared to the fourth quarter 2016.

Full year 2017 Adjusted EBITDA in the Recreation segment was $36.2
million, which was a 229.1 percent increase versus full year 2016.
Adjusted EBITDA in the Recreation segment, excluding the impact of the
acquisitions of Renegade and Midwest, increased 136.7 percent in full
year 2017 compared to 2016. Recreation segment Adjusted EBITDA margin
for the full year 2017 grew 320 basis points to 5.5 percent of net sales
versus 2.3 percent for 2016.

Working capital, liquidity and capital allocation – Net working
capital3 for the Company at October 31, 2017 was $299.7
million compared to $187.3 million at the end of 2016. This increase
versus prior year-end includes the impact of our fiscal 2017
acquisitions. Cash and equivalents totaled $17.8 million at October 31,
2017. Total debt at October 31, 2017 was $229.9 million (net of deferred
financing costs) and as a result, the Company had $185.9 million
available under its ABL revolving credit facility. Capital expenditures
in the fourth quarter and full year 2017 were $4.1 million and $54.0
million, respectively.

Quarterly Dividend – Our board of directors declared a quarterly
dividend for our fourth quarter of fiscal 2017, payable on February 28,
2018, to holders of record on January 26, 2018, in the amount of $0.05
per share of common stock, which equates to a rate of $0.20 per share of
common stock on an annualized basis.

Fiscal 2018 Full Year Guidance – "We are reaffirming our REV
Group full-year fiscal 2018 outlook that was released in early October.
We expect full-year 2018 revenues of $2.4 to $2.7 billion and Adjusted
EBITDA of $200 to $220 million. We are also reaffirming our expectation
for full year 2018 net income to be in the range of $85 to $100
million," said Sullivan. "This outlook does not include any impact from
potential changes in U.S. tax policy and rates, which we believe will be
beneficial."

Subsequent Events - In December 2017, we established a joint
venture with China's Chery Holding Group in Wuhu to manufacture RVs,
ambulances and other specialty vehicles for distribution within China
and select international markets. These products will be sold in China
and internationally through Chery's existing distribution network. The
first vehicles are targeted to be made available to the market in second
half of 2018.

Conference Call

REV Group, Inc. will host a conference call to discuss its fourth
quarter 2017 results and full-year 2018 outlook on December 20th at
11:00 a.m. EDT. A supplemental earnings slide deck will be available
tomorrow morning on the REV Group, Inc. investor relations website prior
to the call. The call will be webcast simultaneously over the Internet.
To access the webcast, listeners can go to http://investors.revgroup.com/investor-events-and-presentations/events
at least 15 minutes prior to the event and follow instructions for
listening to the webcast. An audio replay of the call and related
question and answer session will be available for 12 months at this
website.

Note Regarding Non-GAAP Measures

The Company reports its financial results in accordance with U.S.
generally accepted accounting principles ("GAAP"). However, management
believes that the evaluation of our ongoing operating results may be
enhanced by a presentation of Adjusted EBITDA and Adjusted Net Income,
which are non-GAAP financial measures. Adjusted EBITDA represents net
income before interest expense, income taxes, depreciation and
amortization as adjusted for certain non-recurring, one-time and other
adjustments which we believe are not indicative of our underlying
operating performance and Adjusted Net Income represents net income as
adjusted for certain after-tax, non-recurring, one-time and other
adjustments which the Company believes are not indicative of its
underlying operating performance as well as for the add-back of certain
non-cash intangible amortization and stock-based compensation.

The Company believes that the use of Adjusted EBITDA and Adjusted Net
Income 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
and Adjusted Net Income to the most closely comparable financial
measures calculated in accordance with GAAP is included in the financial
appendix of this news release.

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," "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.

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, which may cause actual results to differ materially from
those projected or implied by the forward-looking statement.
Forward-looking statements are based on current expectations and
assumptions and currently available data and are neither predictions nor
guarantees of future events or performance. You should not place undue
reliance on forward-looking statements, which only speak as of the date
hereof. The Company does not undertake to update or revise any
forward-looking statements after they are made, whether as a result of
new information, future events, or otherwise, expect as required by
applicable law.

About REV Group

REV Group, Inc. (NYSE:REVG) is a leading designer, manufacturer and
distributor of specialty vehicles and related aftermarket parts and
services. We serve a diversified customer base primarily in the United
States through three segments: Fire & Emergency, Commercial and
Recreation. We provide customized vehicle solutions for applications
including: essential needs (ambulances, fire apparatus, school buses,
mobility vans and municipal transit buses), industrial and commercial
(terminal trucks, cut-away buses and street sweepers) and consumer
leisure (recreational vehicles ("RVs") and luxury buses). Our brand
portfolio consists of 29 well-established principal vehicle brands
including many of the most recognizable names within our served markets.
Several of our brands pioneered their specialty vehicle product
categories and date back more than 50 years.

Investors-REVG

1 REV Group, Inc. Adjusted Net Income and Adjusted EBITDA are
non-GAAP measures that are reconciled to their nearest GAAP measure
later in this release. These figures do not include the impact of
acquisitions before their acquisition dates. 2 REV Group, Inc. changed
its fiscal year end from the last Saturday to the last calendar day in
October of each year. Going forward the Company's fiscal quarters will
end on the last day of January, April, July and October.

2 Segment Adjusted EBITDA is a non-GAAP measure that is
explained and reconciled to its nearest GAAP metric later in this
release.

3 Net Working capital is defined as current assets (excluding
cash) less current liabilities (excluding current portion of long-term
debt).

REV GROUP, INC.    
CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
 
October 31, October 29,
2017 2016
ASSETS
Current assets:
Cash and cash equivalents $ 17,838 $ 10,821
Accounts receivable, net 243,242 181,239
Inventories, net 452,380 325,633
Other current assets   13,372   12,037
Total current assets 726,832 529,730
 
Property, plant and equipment, net 217,083 146,422
Goodwill 133,235 84,507
Intangibles assets, net 167,887 124,040
Other long-term assets   9,395   4,320
Total assets $ 1,254,432 $ 889,019
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 750 $
Accounts payable 217,267 129,481
Customer advances 95,774 87,627
Accrued warranty 26,047 22,693
Other current liabilities   70,241   91,803
Total current liabilities 410,079 331,604
 
Notes payable and bank debt, less current maturities 229,105 256,040
Deferred income taxes 22,527 17,449
Other long-term liabilities   20,281   23,710
Total liabilities 681,992 628,803
 
Contingently redeemable common stock 22,293
Commitments and contingencies
Shareholders' equity   572,440   237,923
Total liabilities and shareholders' equity $ 1,254,432 $ 889,019
 
REV GROUP, INC.
CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; dollars in thousands, except shares and per share
amounts)
 
  Three Months Ended   Twelve Months Ended
October 31,

2017

  October 29,

2016

October 31,

2017

  October 29,

2016

Net sales $ 683,928 $ 544,752 $ 2,267,783 $ 1,925,999
 
Cost of sales   587,694   472,433   1,973,179   1,696,068
 
Gross profit 96,234 72,319 294,604 229,931
 
Operating expenses:
Selling, general and administrative 48,579 41,870 188,257 139,771
Research and development costs 859 1,052 4,219 4,815
Restructuring 1,038 714 4,516 3,521
Amortization of intangible assets   4,506   2,475   14,924   9,423
 
Total operating expenses   54,982   46,111   211,916   157,530
 
Operating income 41,252 26,208 82,688 72,401
 
Interest expense, net 5,294 8,331 20,747 29,158
 
Loss on early extinguishment of debt       11,920  
Income before provision for income taxes 35,958 17,877 50,021 43,243
 
Provision for income taxes   13,289   5,796   18,650   13,050
 
Net income $ 22,669 $ 12,081 $ 31,371 $ 30,193
 
Earnings per common share:
Basic $ 0.35 $ 0.24 $ 0.52 $ 0.59
Diluted $ 0.35 $ 0.24 $ 0.50 $ 0.58
 
Dividends declared per common share $ 0.05 $ $ 0.15 $
 
Adjusted earnings per common share:
Basic $ 0.46 $ 0.37 $ 1.25 $ 1.03
Diluted $ 0.44 $ 0.37 $ 1.22 $ 1.03
 
Weighted Average Shares Outstanding:
Basic 63,993,317 51,229,840 60,738,242 51,587,200
Diluted 65,630,285 51,299,920 62,405,492 51,773,760
 
REV GROUP, INC.
CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; Dollars in thousands)
 
    Twelve Months Ended
October 31,

2017

  October 29,

2016

 
Cash flows from operating activities:
Net income $ 31,371 $ 30,193
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 37,812 24,593
Amortization of debt issuance costs 1,794 2,713
Amortization of Senior Note discount 50 249
Stock-based compensation expense 26,627 19,692
Deferred income taxes 2,884 (3,661 )
Loss on early extinguishment of debt 11,920
Gain on disposal of property, plant and equipment (1,163 ) (342 )
 
Changes in operating assets and liabilities, net of effects of
business acquisitions:
  (78,120 )   2,133  
 
Net cash provided by operating activities 33,175 75,570
 
Cash flows from investing activities:
Purchase of property, plant and equipment (54,036 ) (37,502 )
Purchase of rental fleet vehicles (17,743 ) (11,040 )
Purchase of land in Riverside, CA (7,566 )
Proceeds from sale of property, plant and equipment 6,604 2,274
Acquisition of businesses, net of cash acquired (156,361 ) (31,727 )
Acquisition of Ancira assets       (6,435 )
 
Net cash used in investing activities (229,102 ) (84,430 )
 
Cash flows from financing activities:
Net proceeds from borrowings under revolving credit facility 75,882 61,777
Proceeds from Term Loan 75,000
Payment of dividends (6,379 )
Net proceeds from initial public offering 253,593
Repayment of debt assumed from acquisition (3,698 )
Payment of debt issuance costs (6,814 ) (1,085 )
Repayment of long-term debt and capital leases (180,000 ) (20,536 )
Senior Note prepayment premium (7,650 )
Redemption of common stock and stock options (3,251 ) (21,745 )
Proceeds from exercise of common stock options   2,563      
 
Net cash provided by financing activities   202,944     14,713  
 
Net increase in cash and cash equivalents 7,017 5,853
Cash and cash equivalents, beginning of year   10,821     4,968  
 
Cash and cash equivalents, end of year $ 17,838   $ 10,821  
 
REV GROUP, INC.
ADJUSTED EBITDA BY SEGMENT
(Unaudited; in thousands)
 
  Three Months Ended October 31, 2017
Fire & Emergency     Commercial   Recreation   Corporate & Other   Total
 
Net Income (loss) $ 31,068 $ 10,602 $ 11,410 $ (30,411 ) $ 22,669
 
Depreciation & amortization 4,425 2,418 2,832 1,326 11,001
Interest expense, net 1,056 775 37 3,426 5,294
Provision for income taxes         13,289     13,289
EBITDA 36,549 13,795 14,279 (12,370 ) 52,253
 
Transaction expenses 979 1,481 2,460
Sponsor expenses 156 156
Restructuring costs 1,038 1,038
Stock-based compensation expense 496 496
Non-cash purchase accounting 1,764 226 1,990
Loss on early extinguishment of debt            
Adjusted EBITDA $ 39,292 $ 14,833 $ 14,505 $ (10,237 ) $ 58,393
 
Three Months Ended October 29, 2016
Fire & Emergency   Commercial Recreation Corporate & Other Total
 
Net Income (loss) $ 25,189 $ 12,625 $ 2,443 $ (28,176 ) $ 12,081
 
Depreciation & amortization 3,068 2,045 1,704 661 7,478
Interest expense, net 981 762 4 6,584 8,331
Provision for income taxes         5,796     5,796
EBITDA 29,238 15,432 4,151 (15,135 ) 33,686
 
Transaction expenses 48 48
Sponsor expenses 69 69
Restructuring costs 714 714
Stock-based compensation expense 7,394 7,394
Non-cash purchase accounting   73           73
Adjusted EBITDA $ 29,311 $ 16,146 $ 4,151 $ (7,624 ) $ 41,984
 
REV GROUP, INC.
ADJUSTED EBITDA BY SEGMENT
(Unaudited; in thousands)
 
  Twelve Months Ended October 31, 2017

Fire &

Emergency

 

Commercial

 

Recreation

 

Corporate &

Other

 

Total

 
Net Income (loss) $ 85,560 $ 36,119 $ 22,916 $ (113,224 ) $ 31,371
 
Depreciation & amortization 14,603 8,459 11,055 3,695 37,812
Interest expense, net 4,106 2,606 175 13,860 20,747
Provision for income taxes         18,650     18,650
EBITDA 104,269 47,184 34,146 (77,019 ) 108,580
 
Transaction expenses 1,751 3,452 5,203
Sponsor expenses 574 574
Restructuring costs 420 3,356 740 4,516
Stock-based compensation expense 26,627 26,627
Non-cash purchase accounting 3,040 2,074 5,114
Loss on early extinguishment of debt         11,920     11,920
Adjusted EBITDA $ 109,480 $ 50,540 $ 36,220 $ (33,706 ) $ 162,534
 
Twelve Months Ended October 29, 2016

Fire &

Emergency

Commercial Recreation

Corporate &

Other

Total
 
Net Income (loss) $ 70,482 $ 42,367 $ 5,887 $ (88,543 ) $ 30,193
 
Depreciation & amortization 9,707 8,095 4,999 1,792 24,593
Interest expense, net 3,903 2,235 24 22,996 29,158
Provision for income taxes     3     13,047     13,050
EBITDA 84,092 52,700 10,910 (50,708 ) 96,994
 
Transaction expenses 1,629 1,629
Sponsor expenses 219 219
Restructuring costs 308 714 95 2,404 3,521
Stock-based compensation expense 19,692 19,692
Non-cash purchase accounting   770           770
Adjusted EBITDA $ 85,170 $ 53,414 $ 11,005 $ (26,764 ) $ 122,825
 
REV GROUP, INC.
ADJUSTED NET INCOME
(Unaudited; in thousands)
 
  Three Months Ended   Twelve Months Ended
October 31,

2017

  October 29,

2016

  October 31,

2017

  October 29,

2016

Net income $ 22,669   $ 12,081 $ 31,371   $ 30,193
Amortization of Intangible Assets 4,506 2,475 14,924 9,423
Transaction Expenses 2,460 48 5,203 1,629
Sponsor Expenses 156 69 574 219
Restructuring Costs 1,038 714 4,516 3,521
Stock-based Compensation Expense 496 7,394 26,627 19,692
Non-cash Purchase Accounting Expense 1,990 73 5,114 770
Loss on Early Extinguishment of Debt 11,920
Income tax effect of adjustments   (4,122 )   (3,915 )   (24,377 )   (12,273 )
Adjusted Net Income $ 29,193   $ 18,939   $ 75,872   $ 53,174  
 
REV GROUP, INC.
ADJUSTED EBITDA GUIDANCE RECONCILIATION
(In thousands)
  Fiscal Year 2018
Low   High
Net income $ 85,000 $ 100,000
Depreciation and Amortization 43,000 40,000
Interest Expense, net 19,000 16,000
Income Tax Expense   49,000   61,500
 
EBITDA 196,000 217,500
 
Sponsor Expenses 1,000 500
Stock-based Compensation Expense   3,000   2,000
Adjusted EBITDA $ 200,000 $ 220,000
 
REV GROUP, INC.
SEGMENT INFORMATION
(Unaudited; in thousands)
 
  Three Months Ended   Twelve Months Ended
October 31,

2017

  October 29,

2016

October 31,

2017

  October 29,

2016

Net Sales:

Fire & Emergency $ 317,571 $ 244,084 $ 984,036 $ 768,053
Commercial 175,962 179,273 620,129 679,033
Recreation 188,914 120,553 659,831 478,071
Corporate & Other 1,481 842 3,787 842
Total Company Net Sales $ 683,928 $ 544,752 $ 2,267,783 $ 1,925,999
 

Adjusted EBITDA:

Fire & Emergency $ 39,292 $ 29,311 $ 109,480 $ 85,170
Commercial 14,833 16,146 50,540 53,414
Recreation 14,505 4,151 36,220 11,005
Corporate & Other (10,237) (7,624) (33,706) (26,764)
Total Company Adjusted EBITDA $ 58,393 $ 41,984 $ 162,534 $ 122,825
 
 
 

Period-End Backlog:

October 31,

2017

October 29,

2016

Fire & Emergency $ 590,268 $ 550,769
Commercial 366,447 226,067
Recreation 144,847 80,420
Corporate & Other 27
Total Company Backlog $ 1,101,589 $ 857,256
 

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