REV Group on Thursday reported strong growth in its recreational vehicle segment for the third quarter of 2017
Overall, the company’s third quarter 2017 net income was $15.2 million. Net income for the first nine months of 2017 was $8.7 million, due to several one-time expense items, the largest of which related to our IPO and subsequent debt refinancings. Year-to-date Adjusted Net Income was $46.7 million for the first nine months of 2017 compared to $34.2 million for the first nine months of 2016.
“We are pleased to report our third straight quarter of strong earnings as a public company,” said REV Group President and CEO Tim Sullivan. “The quarter was one of significant progress where we both delivered significant growth in net sales and EBITDA as well as made anticipated progress on many of our longer-term growth strategies in parts and service, operational and commercial excellence, new product introductions, and value creating capital allocation. Both our Fire & Emergency and Recreation segments performed very well this quarter and continue to have strong outlooks.”
The Recreation segment grew net sales to $177.9 million in the third quarter 2017, representing an increase of 39.9 percent over the previous year period. Recreation segment sales growth was partially driven by the acquisition of Renegade RV and Midwest Automotive Designs, which were completed on Dec. 30, 2016, and April 13, 2017, respectively.
Recreation net sales excluding the acquisitions of Renegade and Midwest increased 9.3 percent during the quarter due to increased unit sales volumes and higher average selling prices. In addition to the growth in unit sales for the segment’s Class A coaches, the segment is also benefiting from expansion of its Class C line of products as well as overall growth in its end markets.
Recreation net sales for the nine months ended July 29, 2017, were $470.9 million, which was an increase of 31.7 percent over net sales of $357.5 million for the first nine months of fiscal 2016.