- REV Group Inc REVG reported a second-quarter FY22 sales decline of 10.5% year-over-year to $576.3 million, missing the consensus of $595.59 million.
- The gross margin declined by 367 bps to 9.9%, and the operating margin fell 525 bps to 0.2%.
- Adjusted EPS of $0.17 missed the consensus of $0.23.
- Adjusted EBITDA declined by 47.7% Y/Y to $23.8 million, and margin contracted by 295 bps to 4.1%.
- The company's backlog increased 54.6% Y/Y to ~$3.62 billion at the end of the quarter.
- The company repurchased ~1.7 million of its common shares for $21.5 million during the quarter.
- REV Group's generated cash from operating activities YTD of $27.4 million, compared to $37.1 million a year ago. It held cash and equivalents of $5.9 million as of April 30, 2022.
- Net debt was $237.1 million, and the company had $293.6 million available under its ABL revolving credit facility as of April 30, 2022.
- Dividend: REV Group declared a quarterly cash dividend of $0.05 per share payable on July 15, 2022, to shareholders of record on June 30, 2022.
- FY22 Outlook: REV Group expects net sales of $2.25 billion - $2.4 billion (prior expectation $2.3 billion - $2.55 billion) versus the consensus of $2.44 billion.
- It expects Adjusted EBITDA of $100 million - $120 million (prior $125 million - $155 million), Adjusted net income of $43 million - $62 million (prior $64 million - $89 million), and Free cash flow of $58 million - $70 million.
- Price Action: REVG shares are trading lower by 14.7% at $10.39 on the last check Tuesday.
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