REV Group, Inc. (NYSE: REVG) reported Q1 EPS of ($0.04), $0.01 better than the analyst estimate of ($0.05). Revenue for the quarter came in at $532.1 million versus the consensus estimate of $504.54 million.

• First quarter net sales of $532.1 million compared to $518.7 million in the prior year quarter
• First quarter net loss of $9.4 million compared to $14.6 million in the prior year quarter
• First quarter Adjusted EBITDA1 of $11.3 million compared to $12.3 million in the prior year quarter
• First quarter Adjusted Net Loss1 of $2.7 million compared to $2.9 million in the prior year quarter
• First quarter net cash used in operating activities of $13.3 million, compared to $39.4 million in the prior year quarter
• Completed the purchase of Spartan Emergency Response (“Spartan ER”) for $55 million in cash effective February 1, 2020

“Results reflect the anticipated headwind in our Recreation segment, as well as an expected trough in the F&E segment profitability. We continue to expect consolidated revenue and EBITDA improvement throughout the year and reiterate our organic fiscal 2020 guidance,” said Tim Sullivan, CEO REV Group, Inc. “We are also excited to have added to our product portfolio of emergency response vehicles as we solidified our position as number one in the North American fire and emergency markets with the purchase of Spartan ER immediately following the first quarter 2020. REV Group is well positioned to capitalize on the synergy opportunities that we have identified in connection with the integration of Spartan ER, while continuing to execute operational improvements across the remainder of our F&E segment.”2

GUIDANCE:

REV Group, Inc. sees FY2020 revenue of $2.6-2.8 billion, versus the consensus of $2.58 billion.

The Company is reaffirming its prior financial guidance and is also updating its outlook for fiscal year 2020 solely to include the impact of the acquisition of Spartan ER. The Company now expects the following performance for fiscal year:

• Net revenue of $2.6 to $2.8 billion
• Net income of $9 to $30 million
• Adjusted EBITDA of $107 to $123 million
• Adjusted Net Income of $30 to $50 million
• Capital Expenditures of $23 to $28 million
• Interest expense of $29 to $33 million
• Effective tax rate of 27 percent to 29 percent
• Net cash provided by operating activities of $65 to $85 million, plus approximately $5 to $10 million of net cash from the sale of land and other assets

For earnings history and earnings-related data on REV Group, Inc. (REVG) click here.