REV Group said it had net sales in the fourth quarter of $623.6 million, a 5.7% increase compared to the $589.9 million for the three months ended Oct. 31, 2021. The company said the increase in net sales came in the commercial and recreation segments, partially offset by a decrease in net sales in the fire and emergency segment. Consolidated net sales were $2.3 billion for the 12 months ended Oct. 31, which was a decrease of 2.1 percent over the twelve months ended Oct. 31, 2021.
Net income in the fourth quarter 2022 was $8.7 million, compared to a net income of $0 in the same quarter last year. Adjusted net income for the fourth quarter 2022 was $16.2 million compared to adjusted net income of $17.9 million in the fourth quarter 2021. Net income for the full year 2022 was $15.2 million, compared to net income of $44.4 million a year ago.
“Throughout fiscal 2022 we managed macro headwinds that impacted our ability to achieve consistent production flow and staffing levels within our manufacturing facilities,” REV Group President and CEO Rod Rushing said. “In the face of these challenges, we continued to deploy operational initiatives that we believe will deliver improved operational performance and shareholder value. We have made progress against supply chain headwinds with an expectation to benefit from multi-sourcing initiatives within the first half of fiscal 2023. I would like to thank our team for their efforts while working through these challenges.”
Focusing on the recreation segment, net sales were $260.1 million in the fourth quarter 2022, an increase of $42.2 million from $217.9 million in the fourth quarter 2021. The increase in net sales compared to the prior year quarter was primarily due to price realization, and favorable mix, partially offset by lower line rates and unit shipments related to supply chain disruption and labor constraints in certain businesses.
Backlog at the end of the fourth quarter 2022 was $1.1 billion, a decrease of $114.7 million compared to $1.2 billion at the end of the fourth quarter 2021. The decrease was primarily the result of a normalization of inbound orders across categories, partially offset by pricing actions.