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MILWAUKEE — REV Group reported results for the three months ended Jan. 31. Consolidated net sales in the first quarter 2019 were $518.7 million, representing growth of 0.7 percent over the three months ended Jan. 31, 2018 (“first quarter 2018”). The increase in consolidated net sales was driven by continued sales growth in both the Commercial and Recreation segments, which was partially offset by lower net sales in the Fire & Emergency segment.
“Results for the first quarter of fiscal 2019 came in generally as expected. As we mentioned last quarter, the beginning of fiscal year 2019 would include a reset of our operations and production cadence as a result of the many supply headwinds we faced in fiscal 2018. In addition, we experienced order growth across most of our product categories during the first quarter translating into sequentially higher backlog levels and setting us up well for the remainder of the year,” said Tim Sullivan, CEO REV Group, Inc. “As a result of our focus on net working capital management we drove stronger year-over-year cash flow results. I am proud of our team’s ability to effectively manage through several short-term issues and I believe that most of those are now behind us. We continue to expect a successful return to organic top-line growth and improved profitability in fiscal 2019 and we remain on track to meet our full year objectives.”
The company’s first quarter 2019 net loss was $14.6 million, or $0.23 per diluted share, compared to net income of $9.4 million, or $0.14 per diluted share, in the first quarter of 2018. Adjusted Net Loss for the first quarter 2019 was $2.9 million, or $0.05 per diluted share, compared to Adjusted Net Income of $9.8 million, or $0.15 per diluted share, in the first quarter 2018. Adjusted EBITDA in the first quarter 2019 was $12.3 million, compared to $21.3 million in the first quarter 2018. The decline in Net Income, Adjusted Net Income and Adjusted EBITDA during the quarter was driven by lower sales within the normally higher margin Fire & Emergency segment partially offset by growth in both the Commercial and Recreation segments.
Our board of directors declared the regular quarterly dividend for our first quarter 2019, payable on May 30 to holders of record on April 30 in the amount of $0.05 per share of common stock, which equates to a rate of $0.20 per share of common stock on an annualized basis.
REV Group will host a conference call to discuss its first quarter 2019 results and outlook on March 7 at 11 a.m. EST. A supplemental earnings slide deck will be available tomorrow morning on the REV Group investor relations website prior to the call. The call will be webcast simultaneously over the Internet. To access the webcast, listeners can go to http://investors.revgroup.com/investor-events-and-presentations/events at least 15 minutes prior to the event and follow instructions for listening to the webcast. An audio replay of the call and related question and answer session will be available for 12 months at this website.
SOURCE: REV Group press release