A little over a month after going public, Collins Bus Corporation’s parent company REV Group, Inc. (REVG) reported first-quarter net sales of $442.9 million, a nearly 19-percent increase over the same period last year, while also setting guidance for annual results.
The company also announced a full-year guidance of expected revenues ranging from $2.25 billion to $2.35 billion across its 27 commercial vehicle brands. REV Group CEO Tim Sullivan said the expected net income is $40 million to $43 million with Adjusted EBITDA of $150 million to $155 million.
He added that the outlook does not include any impact from potential future acquisitions.
REV Group said its first-quarter consolidated net sales were driven primarily by its fire and emergency, as well as by recreational brands. The company also posted strong aftermarket parts sales, which increased by 10.4 percent over the first quarter of 2016.
“We are pleased to report strong results for our initial quarter as a public company,” said Sullivan in a statement. “Our first quarter 2017 results demonstrate solid execution of the ongoing plan to scale our 27 market-leading specialty vehicle brands and meet our long-term target of generating company-wide Adjusted EBITDA margins of 10 percent.”
First-quarter Adjusted EBITDA was $21.1 million, which grew 40.4 percent over the $15 million posted for the same period last year. The company explained that higher vehicle sales, strong aftermarket parts sales, lower discounts for certain vehicle categories, and ongoing procurement and production cost optimization efforts drove the increase.
Sullivan added that REV Group’s strategic efforts to increase profitability were evident in the quarterly results.
“Sales growth was driven by strong end-market demand, gains in market share and our new product initiatives,” he added. Our strong results serve as a testament to the hard work of our employees who are executing our strategies on a daily basis.”
REV Group did post a first-quarter net loss of $13.3 million, or $0.26 per diluted share, that was negatively impacted by the one-time $25 million before-tax stock compensation tied to the company’s initial public offering that began on Jan. 27 and closed Feb. 1.
Adjusted Net Income for the first quarter 2017 was $5.7 million, or $0.11 per diluted share, compared to $3.9 million, or $0.07 per diluted share, in the first quarter fiscal 2016.
REV Group will host an investor call on Wednesday.
