REV Group has suspended normal production activities at all four of its RV manufacturing facilities in Indiana and California and is withdrawing its full year fiscal 2020 guidance provided on March 4 in light of the COVID-19 pandemic.
REV said it suspended production during the week of March 23 and will continue to monitor local health and safety mandates, the supply chain and dealer demand to determine when to restart normal operations.
The company said its service centers will continue to perform essential support to meet dealers’ and end customers’ technical, warranty and parts requests.
“While we have suspended normal RV production, most of the vehicles we produce are considered by the Department of Homeland Security as essential to the nation’s health and safety, as well as critical to transportation infrastructure. In order to deliver against existing backlogs and inbound orders and support our nation’s first responders during this challenging time, we are currently maintaining a regular work schedule at our non-RV production facilities,” said Rod Rushing, CEO of REV Group. “The safety of employees is our top priority. We have implemented increased safety procedures to limit potential employee exposure to COVID-19 at all of our businesses, including flexible scheduling, frequent and enhanced cleaning and sanitation, limited movement of employees between facilities, restricted visitation to our plants and virtual inspections.”
As a result of uncertainties introduced by the current health crisis, the company said REV Group’s fiscal 2020 financial results may materially differ from guidance provided on March 4. Therefore, the company is withdrawing its full year fiscal 2020 guidance.
With more than $170 million of funding capacity available under its existing ABL credit facility, a current focus on cash management through discretionary spending and capital expenditure reductions, and continued deliveries of emergency vehicles, the company said it believes it has adequate resources to meet its cash requirements over the foreseeable future.
The company said it is in proactive communication with its banking partners and is confident in its ability to navigate through this challenging period. The company plans to provide an update on the credit facilities, as well as its current business and market conditions, no later than its normal fiscal 2020 second quarter earnings announcement.