REV Group has reported results for the three months ended Jan. 31, showing that consolidated net sales were $518.7 million which represented a growth of 0.7 percent over the three months ended Jan. 31, 2018. The company also reported that its first quarter 2019 net loss was $14.6 million, compared to net income of $9.4 million in the first quarter of 2018.
Recreation segment net sales were $176.3 million for the first quarter 2019, an increase of $9 million, or 5.4 percent, from $167.3 million for the first quarter 2018. Recreation segment sales growth was primarily due to higher sales of Super C and Class B RVs, as well as a full quarter of Lance towable and camper sales, partially offset by a reduction in Class A sales.
Excluding the impact of net sales from Lance, which was acquired late in the first quarter 2018, Recreation segment net sales decreased $7.8 million in the first quarter 2019 compared to the first quarter 2018. Recreation segment backlog at the end of the first quarter 2019 was $225.2 million, which was down 22.5 percent from $290.7 million at the end of fiscal year 2018. This decrease in backlog is reflective of the softer Class A RV market, somewhat offset by growth in Class B and Super Cs.
“We are confident that our first-class brands and ongoing performance improvements in this segment will support continued growth in profitability in this segment in fiscal year 2019,” said RV Group CEO Tim Sullivan.
Stating that they experienced a “net loss”, is totally misleading and devoid of facts. All it really means is that the REV Group did not make the profits they projected to make. If they projected profits to be 90 million for the first quarter and only made 81 million, they would say they sustained a 9 million dollar loss for the quarter. So it was not an actual loss, just not what they anticipated.
Sort of like when the government says they saved a one billion dollars because they increased spending by 100 billion instead of 101 billion. Brilliant! Lololol
A company that I worked at used the same tactic. That way they did not have to pay out on the profit sharing agreement they had with the employees.