REV Group Q1 Results Beat Estimates, Reaffirms FY22 Guidance

REV Group Inc REVG reported a first-quarter FY22 sales decline of 3.1% year-over-year to $537 million, beating the consensus of $529.44 million.
Sales by segments: Fire & Emergency $237.4 million (-15.4% Y/Y), Commercial $97.5 million (+17.3% Y/Y) and Recreation $202.6 million (+6.5% Y/Y).
Adjusted EPS of $0.13 topped the consensus of $0.11.
Gross margin contracted by 75 bps to 10.4%. The operating income declined to $0.9 million from $9.7 million in 1Q21, and the margin contracted by 158 bps to 0.2%.
Adjusted EBITDA declined by 21.1% Y/Y to $18.3 million, and margin contracted by 78 bps to 3.4%.
REV Group's cash used in operating activities for the quarter was $3.7 million, compared to cash provided of $1.9 million a year ago. It held cash and equivalents of $13.9 million as of January 31, 2022.
Net debt was $242.1 million, and the company had $258.3 million available under its ABL revolving credit facility as of January 31, 2022.
The company's backlog increased 69.4% Y/Y to ~$3.4 billion at the end of the quarter.
Dividend: REV Group declared a quarterly cash dividend of $0.05 per share payable on April 15, 2022, to shareholders of record on March 31, 2022.
The company repurchased ~2 million of its common shares for $24.4 million during the quarter.
FY22 Outlook reaffirmed: REV Group expects net sales of $2.3 billion - $2.55 billion versus the consensus of $2.43 billion.
It expects Adjusted EBITDA of $125 million - $155 million, Adjusted Net Income of $64 million - $89 million, and Free Cash Flow of $58 million - $80 million.
Price Action: REVG shares are trading higher by 4.98% at $13.70 on the last check Wednesday.

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