Q3 2024 REV Group Inc Earnings Call Transcript
Key Points
- Specialty Vehicles segment achieved an adjusted EBITDA margin of 10.3% in the third quarter.
- Ambulance business continued to benefit from increased line rates and improved efficiencies.
- Fire group saw operational improvements and increased throughput, contributing to higher profitability.
- Consolidated backlog of $4.4 billion, led by strong inbound orders for fire and emergency vehicles.
- Net debt to trailing 12-month adjusted EBITDA ratio was just below 1x leverage, indicating a strong financial position.
- Consolidated net sales decreased by $101 million compared to the third quarter of last year.
- Recreational vehicle segment faced a 31% year-over-year decline in net sales due to lower unit shipments and increased discounting.
- Terminal truck sales were lower than the previous year, contributing to a drag on overall performance.
- Dealer reluctance to replenish inventory in the RV segment led to deferred deliveries and lower sales.
- Ongoing challenges in the recreational vehicle end market due to discretionary purchase delays by consumers.
Greetings. Welcome to REV Group's Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.
I will now turn the conference over to your host, Drew Konop. Thank you. You may begin.
Good morning, and thanks for joining us. Earlier today, we issued our third quarter fiscal 2024 results. A copy of the release is available on our website at investors.revgroup.com. Today's call is being webcast and a slide presentation, which includes a reconciliation of non-GAAP to GAAP financial measures, is available on our website. Please refer now to Slide 2 of that presentation.
Our remarks and answers will include forward-looking statements, which are subject to risk that could cause the actual results to differ from those expressed or implied by such forward-looking statements. These risks include, among others,
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