REV Group, Inc.

Hello, everyone. Thank you for joining the call today. Please stay on the line as the conference will begin momentarily. Again, please stay on the line. The conference will begin momentarily while more people join. Thank you. Thank you. Thank you. Greetings. Welcome to the REV Group, Inc. First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. And please note that this conference is being recorded. I will now turn the conference over to your host, Drew Knopp, VP, Investor Relations and Corporate Development. Thank you. You may begin.

All right. Thanks, John. Good morning, and thanks for joining us. Earlier today, we issued our first quarter fiscal 2022 results. A copy of the release is available on our website at investors.revgroup.com. Today's call is being webcast, and the slide presentation, which includes the reconciliation of non-GAAP to GAAP financial measures, is available on our website. Please refer now to slide two of that presentation. Our remarks and answers will include forward-looking statements which are subject to risks that could cause actual results to differ from those expressed or implied by such forward-looking statements. These risks include, among others, matters that we've described in our Form 8-K filed with the FCC earlier today, and other filings we make with the SEC. We disclaim any obligation to update these forward-looking statements, which may not be updated until our next quarterly earnings call, if at all. All references on this call to a quarter or a year, or to our fiscal quarter, or fiscal year, unless otherwise stated. Joining me on the call today are our President and CEO, Rod Rushing, as well as our CFO, Mark Skanechny. Please turn to slide three, and I'll turn the call over to Rod.

Thank you, Drew, and good morning to everyone joining us on today's call. This morning, I'll provide an overview of the quarter's consolidated performance and then move to commercial operating and financial highlights achieved within the quarter before turning it over to Mark for detailed segment financials. During the quarter, we continued to experience external supply chain challenges across our businesses. Results were impacted by lower starts affecting completions and increased wood rework driving inefficiencies. These impacts to our performance stem from supply-side constraints that began in the third quarter of last year and have continued through the current reporting quarter. Chassis inventory has improved sequentially but is still measurably down on prior year compare. We have received deliveries against allocations in chassis later in cycle and at a reduced fill rate. This created challenges within our production planning and materials processes. We also experienced an increased positive COVID case rate that grew throughout the quarter. Exiting fiscal 2021, the enterprise had only 12 new positive cases in October. The new positive case number grew to 158 in the month of December and then to 615 in the month of January. In total, we estimate we lost approximately 45,000 total labor hours to COVID-related absenteeism. As demonstrated by our first quarter consolidated results, The impact and ability to navigate through these external headwinds varies within our segments. Both our commercial and recreation segments delivered year-on-year revenue and EBITDA growth, while our fire and emergency segment, which has a more fragmented supply base and relies more on solo and single-source components, experienced a drop in revenue and EBITDA. So like many other industrials, we continue to work through a difficult environment. While I always expect that we should do better, our team continues to work these problems daily and continues to serve our customers. I'm very confident that the work we are doing will deliver increased value when we get back to a more stable operating environment. First quarter consolidated net sales of $537 million decreased 3% versus $554 million in the first quarter of last year. The decrease was driven by lower sales in fire and emergency segment, partially offset by increase within commercial and recreation segments and price realization from our commercial actions that we've implemented over the past 12 months. Consolidated EBDA of $18.3 million was down $5 million from $23 million in the prior period. Solid results in the commercial recreation segments offset lingering headwinds in the fire and emergency segment. The decrease in F&E was primarily due to lower volume, resulting in fewer vehicle starts, rework, and labor inefficiencies. The increase in the commercial segment was driven by higher volumes in school bus and terminal truck sales. The growth in recreation segment performance was a result of increased throughput from Renegade and Midwest, as well as price realization. Turning to slide four, we had several accomplishments within the quarter that I would like to highlight. First, in-market demand across our portfolio of products continues at record levels. We exited the quarter with a record $3.4 billion backlog, an increase of 69% versus the prior year. Each segment's backlog is a respective record, resulting from strong order intake. Municipal budgets remain healthy, backed by tax collection and federal stimulus that, in many cases, has yet to be allocated. We believe broadly that the money is still finding its way through the budgetary and approval process. We continue to work with third parties to connect unallocated federal stimulus dollars to our customers. This has contributed to a book-to-bill ratio of greater than one for seven consecutive quarters. Within the first quarter, we recorded a book to bill of 1.4 times, positioning us for growth in fiscal 2023. As our backlog has grown to 3.4 billion, our purchasing organization has remained focused on expanding our supply base, anticipating inflationary pressures over the next 18 months. Within the quarter, we experienced a greater number of inbound price increase requests. The team has worked diligently to limit these impacts through dual sourcing, leveraging offshore resources, and increasing the number of e-auctions. We have implemented additional forward pricing actions to offset the forward inflation of raw materials, components, labor, and transportation. And additionally, we have worked with our channel partners to reprice portions of our backlog. Shortly after we closed the first fiscal quarter, our E&C municipal transit business announced the first order for its access battery electric bus. It was an order for six buses, by First Transit, a leader in university mobility solutions for operation at Emory University in Atlanta. The university recently joined the Race to Zero, a coalition of educational institutions devoted to achieving zero carbon emissions. The NC Access is the first battery electric bus order for the Atlanta campus, and the bus will contribute to the goal of creating more sustainable campus. We're also excited that this battery electric access bus has recently completed Altoona testing. This is a major step entry into fleets funded by the Federal Transit Administration. Transit agencies typically secure a large portion of their capital costs of a new bus from FTA funds. The bipartisan infrastructure law passed in November authorizes up to $108 billion in funding for the FTA over the next five years, a significant increase from its FAST Act predecessor. With efforts like the Race to Zero, we are provided a great opportunity to enter new markets and grow our market share as the industry transitions to these new powertrains. We are focused on developing industry leading technologies and features. The NC lineup of zero emission buses includes not only this battery electric platform, but a first generation hydrogen fuel cell platform and a flexible diesel hybrid that is allowed to operate in green zones. Within the recreation segment, consumer confidence remains high and demand for RVs continues to be strong. In January, we completed our most successful RV Super Show. This included strong sales for our motorized categories, and even though our campers and trailers had less units on display, we sold more than any of the shows over the past 10 years. Our Lance RV business is West Coast-based and serves the higher-end travel trailer and camper markets, holding a leading market share position in this category. We have explored expanding distribution to the eastern and southern markets. However, it has proven logistically challenging and has been difficult to keep pace with the unprecedented demand on the west coast. To build on Lance's success and to grow our recreation segment, we have announced that we are leveraging our Decatur, Indiana campus for added production of Lance travel trailers. The expansion serves growth opportunity in terms of geography, fulfilling our existing dealer base, and enables us to reach new customers. Finally, at our investor day last April, we detailed balanced capital allocation philosophy. We've increased our capital budget over the past two years to pursue strategic organic investments. I just mentioned an opportunity within the recreation segment that we feel will create shoulder value. On the M&A front, we have been reviewing opportunities, but valuations are challenging, and we intend to remain disciplined. Within the first quarter, we directed capital allocation efforts to returning cash to our shareholders. Last year, after reinstating our quarterly cash dividend and reaching our target leverage ratio, we obtained a $150 million share repurchase authorization. Our goal was not only to offset stock-based compensation dilution, but also to be opportunistic. Within the first quarter, we deployed $24 million to share repurchases and bought back 2 million shares. Combined with the $3 million paid for our quarterly cash dividends, we have returned a total of $27 million to our shareholders. We are committed to this balanced approach, and we expect it will deliver shareholder value. I will now turn it over to Mark for details on our first quarter financial performance.