REV Group reported results for the first quarter, and though the company suffered a loss overall, its RV division continued to see increased sales.
The company had consolidated net sales of $537.0 million in Q1, representing a decrease of 3.1 percent compared to $554.0 million for the same period last year. The decrease in consolidated net sales was primarily due to lower net sales in its Fire & Emergency segment, although that drop was partially offset by an increase in its Recreation and Commercial divisions.
The company’s first quarter 2022 net loss was $0.7 million, or $0.01 per diluted share, which included $4.4 million of restructuring and restructuring-related charges, and $1.4 million of accelerated depreciation on buildings and equipment related to restructuring within the F&E segment.
Adjusted net income for the first quarter 2022 was $8.0 million, or $0.13 per diluted share, compared to adjusted net income of $8.8 million, or $0.14 per diluted share, in the first quarter last year.
“We began fiscal 2022 with strong demand, which combined with the execution of our Commercial Excellence program has led to a record backlog in each of our segments and positions us to continue to benefit from strong municipal budgets,” REV Group President and CEO Rod Rushing said. “Despite having to navigate several external headwinds within the quarter, our consolidated results were largely in line with our expectations. We anticipate the external headwinds will continue in the near term and believe the actions we have taken, and an improved supply chain will improve performance in the second half of the fiscal year.”
In the Recreation segment net sales were $202.6 million in the first quarter 2022, an increase of $12.4 million, or 6.5 percent, from $190.2 million in the first quarter 2021. The increase in net sales compared to the prior year quarter was primarily due to strong 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.
REV reported that backlog at the end of the first quarter 2022 was $1.3 billion, an increase of $528.3 million compared to $754.3 million at the end of the first quarter 2021. The increase was primarily the result of strong demand and order intake across all product categories.
Recreation segment adjusted EBITDA was $17.1 million in the first quarter 2022, an increase of $2.0 million, or 13.2 percent, from $15.1 million in the first quarter 2021. The company said the increase was primarily due to strong price realization and favorable mix, partially offset by inefficiencies related to supply chain disruption and labor constraints, and inflationary pressures.
Meanwhile, REV reported that cash and cash equivalents totaled $13.9 million as of Jan. 31. Net debt was $242.1 million, and the company had $258.3 million available under its ABL revolving credit facility as of Jan. 31, a decrease of $31.7 million as compared to the Oct. 31, 2021, availability of $290.0 million.
During the first quarter 2022, the company repurchased about 2.0 million of its common shares, for $24.4 million, at an average purchase price of $12.29 per share.