Wed, Jun 5, 11:17 AM (51 days ago)
REV Group, Inc.'s Q2 FY2024 10-Q report indicates a mixed financial performance. Key highlights include: - **Net Sales**: Decreased by 9.4% YoY to $616.9M for the quarter and 4.9% YoY to $1,202.9M for the six months, primarily due to lower sales in the Recreational Vehicles segment. - **Gross Profit**: Fell by 6.3% YoY to $77.3M for the quarter but remained stable at $140.2M for the six months. The decline was partially offset by price realization and increased shipments in the Specialty Vehicles segment. - **Net Income**: Increased by 7.0% YoY to $15.2M for the quarter, driven by a favorable tax impact. For the six months, net income surged to $197.9M, mainly due to the gain from the divestiture of Collins. - **Adjusted EBITDA**: Dropped by 10.5% YoY to $37.5M for the quarter but rose by 7.6% YoY to $68.0M for the six months, reflecting improved performance in the Specialty Vehicles segment. - **Restructuring and Impairment Charges**: Incurred $3.7M in restructuring costs for the quarter and $12.6M in impairment charges related to the discontinuation of operations at the ENC facility. - **Cash Flow**: Operating activities used $29.6M, primarily due to tax payments and lower customer advances. Investing activities generated $301.9M, mainly from the Collins sale, while financing activities used $255.4M, largely for share repurchases and dividends. - **Future Outlook**: The company expects continued restructuring costs and potential impacts from economic conditions, consumer confidence, and supply chain disruptions. Overall, the report reflects a strategic shift with significant one-time gains and ongoing restructuring efforts.