Stock Monitor: Winnebago Industries Post Earnings Reporting

LONDON, UK / ACCESSWIRE / April 18, 2018 / Active-Investors.com has just released a free earnings report on REV Group, Inc. (NYSE: REVG). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=REVG. REV Group reported its first quarter and fiscal 2018 operating and financial results on March 07, 2018. The Recreational Vehicle Manufacturer outperformed top- and bottom-line expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Winnebago Industries, Inc. (NYSE: WGO), which also belongs to the Consumer Goods sector as the Company REV Group. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, REV Group most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=REVG

Earnings Highlights and Summary

REV Group's consolidated net sales in the first quarter ended January 31, 2018, were $514.9 million, reflecting an increase of 16.2% over sales of $442.9 million for the three months ended January 28, 2017. This increase reflects sales growth in each of the Company's reported operating segments which was partially driven by the impact of acquisitions. REV Group's reported numbers beat analysts' estimates by $2.18 million.

REV Group's net income was $9.4 million, or $0.14 per diluted share, in Q1 FY18 compared to a net loss of $13.3 million, or $0.26 per diluted share, in Q1 FY17. The Company's reported quarter results improved due to higher earnings from operations, the benefit of acquisitions, lower interest expense, and the favorable impact of recently enacted US tax reform. REV Group's adjusted net income was $9.7 million, or $0.15 per diluted share, for Q1 FY18 compared to $5.7 million, or $0.11 per diluted share, in Q1 FY17, and came in ahead of Wall Street's estimates of $0.09 per share.

During Q1 FY18, REV Group's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) was $21.3 million, representing growth of 0.9% over adjusted EBITDA of $21.1 million in Q1 FY17, benefitting from higher net sales and earnings from certain business segments as well as the impact of acquisitions.

REV Group's Segment Results

During Q1 FY18, the Fire & Emergency (F&E) segment's net sales rose 16.1% to $215.3 million from $185.4 million for Q1 FY17. The increase in net sales of F&E was driven by results from the Ferrara acquisition completed in April 2017 as well as increased unit volumes. F&E's backlog at the end of the reported quarter was up 5.4% to $622.3 million compared to $590.3 million at the end of FY17.

In Q1 FY18, the F&E's adjusted EBITDA was $18.2 million, up 8.7% compared to $16.7 million in Q1 FY17. The increase in the F&E adjusted EBITDA was driven by higher unit volumes and the impact of the Ferrara acquisition. The segment's reported quarter adjusted EBITDA margin was 8.4% of net sales compared to 9.0% in the prior year's same quarter.

For Q1 FY18, the Commercial segment's net sales were $132.2 million, up 1.5% on a y-o-y basis, as a result of higher unit sales in all segment product categories, excluding school bus. School bus sales were down versus the prior year's comparable quarter due to lower contractor unit sales. Commercial backlog at the end of Q1 FY18 was $337.8 million, down 7.8% compared to $366.4 million at the end of FY17.

In Q1 FY18, the Commercial segment's adjusted EBITDA was $4.5 million compared to $8.2 million in Q1 FY17. The Company's adjusted EBITDA margin was 3.4% of net sales in the reported quarter compared to 6.3% in the year ago comparable period. The decrease was primarily due to a shift in the timing of transit bus shipment as well as lower school bus sales in the reported quarter.

During Q1 FY18, the Recreation segment's net sales surged 32.0% to $167.2 million on a y-o-y basis, driven by strength in its end markets as well as sales from acquired companies. This segment's backlog was $281.8 million at the end of the reported quarter, reflecting an increase of 94.6% from $144.8 million at the end of FY17. This significant increase in backlog was positively impacted by the acquired backlog in the Lance Camper business.

In Q1 FY18, the Recreation segment's adjusted EBITDA grew 194.0% to $8.2 million compared to $2.8 million in Q1 FY17. The Company's adjusted EBITDA margin in the reported quarter grew 270 basis points to 4.9% of net sales compared to 2.2% in the prior year's corresponding quarter.

Working Capital, Liquidity and Capital Allocation

As of January 31, 2018, REV Group's net working capital was $389.3 million compared to $299.7 million at the end of FY17. As of January 31, 2018, REV Group's cash and equivalents totaled $12.7 million, while its total debt was $372.3 million. REV Group's capital expenditures were $13.6 million in Q1 FY18 compared to $18.1 million in the prior year's same quarter.

Outlook

For full fiscal year 2018, REV Group is forecasting revenues in the range of $2.4 billion to $2.7 billion and adjusted EBITDA of $200 million to $220 million. The Company updating its expectation of full fiscal year 2018 net income to be in the range of $90 million to $110 million and adjusted net income to be in the range of $110 million to $125 million.

Stock Performance Snapshot

April 17, 2018 - At Tuesday's closing bell, REV Group's stock dropped 8.81%, ending the trading session at $18.42.

Volume traded for the day: 1.40 million shares, which was above the 3-month average volume of 660.57 thousand shares.

After yesterday's close, REV Group's market cap was at $1.20 billion.

Price to Earnings (P/E) ratio was at 27.66.

The stock has a dividend yield of 1.09%.

The stock is part of the Consumer Goods sector, categorized under the Recreational Vehicles industry. This sector was up 0.5% at the end of the session.

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