Specialty vehicle manufacturer REV Group reported third quarter net sales of $593.3 million, compared to $582.2 million in the prior year quarter, an increase of 1.9 percent.
Third quarter net income was $23.7 million, compared to a net loss of $3.6 million in the prior year’s quarter.
The increase in consolidated net sales was primarily due to an increase in net sales in the company’s recreation and commercial segments, which were partially offset by a decrease in net sales in its fire and emergency segment.
In the company’s recreation segment, it reported net sales of $212.5 million in the fiscal third quarter, an increase of $29.8 million, or 16.3 percent, from $182.7 million in same quarter a year ago.
The increase in net sales was primarily due to increased unit shipments and lower discounting and sales allowances. Earnings in the quarter were partially offset by inefficiencies resulting from supply chain disruptions and labor constraints, the company said.
Backlog at the end of the third quarter 2021 was $1.1 billion, an increase of $829.2 million compared to $327.8 million at the end of the third quarter 2020. The increase was primarily the result of continued strong demand and order intake across all product categories in the RV segment, the company said.
“We delivered another strong quarter of earnings performance and cash generation while continuing to manage through supply chain and labor challenges that impacted our top line growth. Our end markets remain strong with solid order intake in each of our segments, resulting in REV Group’s seventh consecutive record backlog,” REV Group President and CEO Rod Rushing said. “Improved cash generation and resulting debt reduction has positioned us with the capacity to pursue our strategic growth agenda as well as the share repurchase authorization approved by our board of directors.”
On Sept. 2, the company’s board of directors approved the authorization of a new share repurchase program that allows the repurchase of up to $150 million of the company’s outstanding common stock, effective immediately. The share repurchase authorization expires in 24 months and gives management the flexibility to determine conditions under which shares may be purchased.
