REV Group recently reported that the consolidated net sales in the first quarter 2018 were $514.9 million, an increase of 16.2 percent over the three months ended Jan. 28, 2017. This increase reflects sales growth in each of REV’s reported operating segments which was partially driven by the impact of acquisitions.
First quarter net income of $9.4 million, an increase of 171 percent compared to the prior year.
“Fiscal year 2018 is off to a good start as we saw continued growth across most of our product categories and we remain on track to meet our full year objectives,” said Tim Sullivan, CEO REV Group. “We continue to remain highly focused on the execution of our commercial, product and operating strategies to improve profitability as we work towards our long-term goal of an enterprise-wide EBITDA margin in excess of 10 percent. Additionally, we continued to execute on our disciplined capital allocation strategy with the acquisition of Lance Camper this quarter, which enables our entry into the large and fast growing towables RV market.”
First quarter 2018 net income improved as a result of higher earnings from operations, the benefit of acquisitions, lower interest expense, and the favorable impact of recently enacted U.S. tax reform. Adjusted net income for the first quarter 2018 was $9.7 million, which grew 72 percent compared to $5.7 million in the first quarter 2017.
Adjusted EBITDA in the first quarter 2018 was $21.3 million, representing growth of 0.9 percent over adjusted EBITDA of $21.1 million in the first quarter 2017.
The recreation segment grew net sales to $167.2 million in the first quarter 2018, representing an increase of $40.5 million, or 32 percent, from the first quarter 2017. Recreation segment sales growth was the result of strength in its end markets as well as sales from acquired companies. Recreation segment backlog at the end of the first quarter 2018 was $281.8 million, an increase of 94.6 percent from $144.8 million at the end of fiscal year 2017. This significant increase in backlog was positively impacted by the acquired backlog in the Lance Camper business.
At the end of the first quarter 2018, REV acquired Lance Camper, which adds a premium portfolio of truck campers, towable campers and toy haulers to REV’s existing suite of motorized offerings. Lance has the number one selling truck camper in the U.S. and has won the National RV Dealer Association’s prestigious Quality Circle Award 16 years running.
