The REV Group has reported fourth quarter net sales of $589.9 million, a decrease of 4.3 percent compared to $616.3 million for the last three months of the previous fiscal year.
The company’s recreation segment — its RV manufacturing arm – saw net sales increase 12.2 percent in the quarter, to $217.9 million compared with $194.2 million a year ago. The company said that increased unit shipments drove that segment’s revenues higher, along with lower discounting and sales allowances. Sales in that segment were strong across all product categories, the company said.
The company said that its overall decrease in consolidated net sales was due primarily to a decrease in net sales in its fire and emergency segment, whose sales in the quarter were down 16 percent. Helping offset those losses, aside from the recreation segment increase, was an increase in the commercial segment, which saw an increase in sales of nearly 4 percent.
The company’s fourth quarter 2021 net income was $0.0 million, or $0.00 per diluted share, which included a $6.2 million loss related to the expected exit of its interest in a China JV investment, as well as $3.6 million related to restructuring and related activities and impairment of real property at certain facilities within the F&E segment. Adjusted net income for the fourth quarter 2021 was $17.9 million, or $0.27 per diluted share, compared to $11.8 million, or $0.19 per diluted share, in the fourth quarter 2020. Net income for the full year 2021 was $44.4 million, or $0.69 per diluted share, compared to a net loss of $30.5 million, or $0.48 per diluted share, in full year 2020.
Regarding the company’s recreation segment, backlog at the end of the fourth quarter 2021 was $1.2 billion, an increase of $695.6 million compared to at the end of the fourth quarter 2020. The increase was primarily the result of strong demand and order intake across all product categories, the company said.
“We exited the year with another quarter of year-over-year Adjusted EBITDA improvement, generated record full-year Free Cash Flow, and substantially improved the balance sheet. Our record $3.1 billion backlog combined with the significant progress we have made building our operational capabilities have positioned us well to continue to improve our performance and create shareholder value,” REV Group Inc. President and CEO Rod Rushing said. “I am proud of the dedication of our employees as they delivered strong performance in fiscal 2021, while navigating through supply chain challenges, difficult labor markets and inflationary headwinds.”
During the quarter, the company appointed Eric Sandstrom as senior vice president, Engineering and Technology, a newly created executive leadership position. The new role will play a critical part in evolving the portfolio, optimizing engineering excellence, and leading product and powertrain design, innovation, and technological advancement. Prior to joining REV Group, Sandstrom was global chief engineer – Electric Propulsion Systems at General Motors.
For the coming fiscal year, ending Oct. 31, 2022, REV Group said it expects net sales of $2.3 to $2.55 billion, and net income of $45 million to $73 million.
