Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of ~~September 4, 2020,~~March 8, 2021, the registrant had ~~63,476,203~~64,519,781 shares of common stock, $0.001 par value per share, outstanding.

This Quarterly Report on Form 10-Q may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” “contemplate,” “aim” and other similar expressions, and include our segment net sales and other expectations described under “Overview” below, although not all forward-looking statements contain these identifying words. Investors are cautioned that forward-looking statements are inherently uncertain. A number of factors could cause actual results to differ materially from these statements, including, but not limited to increases in interest rates, availability of credit, low consumer confidence, availability of labor, significant increases in repurchase obligations, inadequate liquidity or capital resources, availability and price of fuel, a slowdown in the economy, increased material and component costs, availability of chassis and other key component parts, sales order cancellations, slower than anticipated sales of new or existing products, new product introductions by competitors, the effect of global tensions, integration of operations relating to mergers and acquisitions activities and the overall impact of the novel coronavirus, known as "COVID-19", pandemic on the Company’s business, results of operations and financial condition. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested is contained in the “Risk Factors” section in our filings with the U.S. Securities and Exchange Commission (“SEC”). We disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this Form 10-Q or to reflect any changes in expectations after the date of this release or any change in events, conditions or circumstances on which any statement is based, except as required by law.

We use our website (www.revgroup.com) and corporate Twitter account (@revgroupinc) as routine channels of distribution of company information, including news releases, analyst presentations, and supplemental financial information, as a means of disclosing material non-public information and for complying with our disclosure obligations under SEC Regulation FD. Accordingly, investors should monitor our website and our corporate Twitter account in addition to following press releases, SEC filings and public conference calls and webcasts. Additionally, we provide notifications of news or announcements as part of our investor relations website. Investors and others can receive notifications of new information posted on our investor relations website in real time by signing up for email alerts.

None of the information provided on our website, in our press releases, public conference calls and webcasts, or through social media channels is incorporated into, or deemed to be a part of, this Quarterly Report on Form 10-Q or in any other report or document we file with the SEC, and any references to our website or our social media channels are intended to be inactive textual references only.

				(Audited)						(Audited)
	July 31, 2020			October 31, 2019			January 31, 2021			October 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	17.3		$	3.3		$	9.1		$	11.4
Accounts receivable, net		239.3			253.5			207.7			229.3
Inventories, net		572.3			513.4			533.2			537.2
Other current assets		57.9			19.4			17.6			34.1
Assets held for sale		—			19.5			9.7			—
Total current assets		886.8			809.1			777.3			812.0
Property, plant and equipment, net		182.3			201.7			155.9			168.4
Goodwill		157.3			159.8			157.3			157.3
Intangible assets, net		142.3			159.9			133.6			136.1
Right of use assets		24.7			—			19.6			23.2
Other long-term assets		16.0			16.6			15.4			15.3
Total assets	$	1,409.4		$	1,347.1		$	1,259.1		$	1,312.3
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt	$	1.7		$	3.6		$	1.7		$	1.7
Accounts payable		175.8			200.8			128.7			169.5
Customer advances		185.9			129.9			167.6			170.1
Accrued warranty		23.7			16.1			22.3			24.1
Short-term lease obligations		9.3			—			7.6			8.4
Liabilities held for sale		—			15.4			9.3			—
Other current liabilities		72.4			70.2			65.9			73.5
Total current liabilities		468.8			436.0			403.1			447.3
Long-term debt, less current maturities		388.7			376.6			330.4			340.5
Deferred income taxes		27.6			15.4			4.1			2.9
Long-term lease obligations		16.8			—			13.5			16.9
Other long-term liabilities		25.4			13.9			32.7			32.4
Total liabilities		927.3			841.9			783.8			840.0
Commitments and contingencies
Shareholders' Equity:
Common stock ($.001 par value, 605,000,000 shares authorized; 63,476,203 and 62,217,486 shares issued and outstanding, respectively)		0.1			0.1
Preferred stock ($.001 par value, 95,000,000 shares authorized; NaN issued or outstanding)								—			—
Common stock ($.001 par value, 605,000,000 shares authorized; 64,479,781 and 63,403,326 shares issued and outstanding, respectively)								0.1			0.1
Additional paid-in capital		495.8			490.8			499.1			496.1
Retained (deficit) earnings		(11.2	)		15.8
Retained deficit								(21.1	)		(21.1	)
Accumulated other comprehensive loss		(2.6	)		(1.7	)		(2.8	)		(2.8	)
Total REV's shareholders' equity		482.1			505.0
Non-controlling interest		—			0.2
Total shareholders' equity		482.1			505.2			475.3			472.3
Total liabilities and shareholders' equity	$	1,409.4		$	1,347.1		$	1,259.1		$	1,312.3

Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) ~~Income~~

	Three Months Ended July 31,					Nine Months Ended July 31,						Three Months Ended January 31,
	2020			2019		2020			2019			2021		2020
Net sales	$	582.2		$	617.0	$	1,661.3		$	1,750.8		$	554.0	$	532.1
Cost of sales		515.7			545.7		1,495.0			1,560.7			492.3		484.7
Gross profit		66.5			71.3		166.3			190.1			61.7		47.4
Operating expenses:
Selling, general and administrative		53.5			48.9		157.6			145.3			47.1		46.3
Research and development costs		1.7			1.2		4.4			3.7			1.3		1.2
Amortization of intangible assets		3.0			4.0		10.4			13.2			2.6		4.0
Restructuring		2.5			1.3		6.0			4.2			1.0		0.6
Impairment charges		3.7			—		3.7			2.8
Total operating expenses		64.4			55.4		182.1			169.2			52.0		52.1
Operating income (loss)		2.1			15.9		(15.8	)		20.9			9.7		(4.7	)
Interest expense, net		5.7			8.4		20.3			24.2			5.5		7.3
Loss on sale of business		0.5			—		9.3			—
Gain on acquisition of business		—			—		(11.9	)		—
(Loss) income before (benefit) provision for income taxes		(4.1	)		7.5		(33.5	)		(3.3	)
(Benefit) provision for income taxes		(0.5	)		1.9		(13.2	)		—
Net (loss) income	$	(3.6	)	$	5.6	$	(20.3	)	$	(3.3	)
Loss on business held for sale													3.8		—
Loss on acquisition of business													0.4		—
Income (loss) before benefit for income taxes													—		(12.0	)
Benefit for income taxes													—		(2.6	)
Net income (loss)												$	—	$	(9.4	)

Other comprehensive loss, net of tax		(0.8	)		—		(0.9	)		(0.2	)
Comprehensive (loss) income	$	(4.4	)	$	5.6	$	(21.2	)	$	(3.5	)
Other comprehensive income (loss), net of tax													—		—
Comprehensive income (loss)												$	—	$	(9.4	)

Net (loss) income per common share:
Net income (loss) per common share:
Basic	$	(0.06	)	$	0.09	$	(0.32	)	$	(0.05	)	$	—	$	(0.15	)
Diluted	$	(0.06	)	$	0.09	$	(0.32	)	$	(0.05	)	$	—	$	(0.15	)
Dividends declared per common share	$	-		$	0.05	$	0.10		$	0.15		$	—	$	0.05

	Nine Months Ended July 31,						Three Months Ended January 31,
	2020			2019			2021			2020
Cash flows from operating activities:
Net loss	$	(20.3	)	$	(3.3	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Net income (loss)							$	—		$	(9.4	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		30.9			34.8			8.6			10.8
Amortization of debt issuance costs		1.8			1.5			0.6			0.5
Stock-based compensation expense		7.2			7.3			1.9			2.6
Deferred income taxes		8.3			3.5			1.3			1.8
Gain on sale of assets		(0.8	)		(1.7	)		(1.5	)		(0.5	)
Impairment charges		3.7			2.8
Loss on sale of business		9.3			—
Gain on acquisition of business		(11.9	)		—
Loss on business held for sale								3.8			—
Loss on acquisition of business								0.4			—
Changes in operating assets and liabilities, net		(3.2	)		(22.9	)		(13.2	)		(19.1	)
Net cash provided by operating activities		25.0			22.0
Net cash provided by (used in) operating activities								1.9			(13.3	)
Cash flows from investing activities:
Purchase of property, plant and equipment		(9.7	)		(14.1	)		(2.9	)		(3.2	)
Purchase of rental and used vehicles		(3.3	)		(3.0	)		—			(2.7	)
Proceeds from sale of assets		6.7			22.6			10.0			3.5
Proceeds from sale of businesses		50.9			—
Acquisition of business		(54.8	)		—
Net cash (used in) provided by investing activities		(10.2	)		5.5
Proceeds from sale of business								—			1.1
Net cash provided by (used in) provided by investing activities								7.1			(1.3	)
Cash flows from financing activities:
Net proceeds (repayments) from borrowings under April 2017 ABL Facility		13.0			(52.0	)
Net proceeds from borrowings of Term Loan		—			49.2
Net (repayments) proceeds from borrowings under ABL Facility								(10.0	)		82.0
Repayment of long-term debt		(2.9	)		(1.1	)		(0.4	)		—
Payment of dividends		(9.5	)		(9.4	)		—			(3.1	)
Repurchase and retirement of common stock		—			(8.3	)
Other financing activities		(1.4	)		2.0			(0.9	)		(0.3	)
Net cash used in financing activities		(0.8	)		(19.6	)
Net increase in cash and cash equivalents		14.0			7.9
Net cash (used in) provided by financing activities								(11.3	)		78.6
Net (decrease) increase in cash and cash equivalents								(2.3	)		64.0
Cash and cash equivalents, beginning of period		3.3			11.9			11.4			3.3
Cash and cash equivalents, end of period	$	17.3		$	19.8		$	9.1		$	67.3

Common Stock

Additional Paid-in

Retained

Non-controlling

Accumulated
Other
Comprehensive

Total
Shareholders'

Amount

# Shares

Capital

Earnings (Deficit)

Interest

Loss

Equity

Balance, October 31, 2019

$
0.1

62,217,486 Sh.

$
490.8

$
15.8

$
0.2

$
(1.7
)

$
505.2

Net loss

(9.4
)

(9.4
)
Sale of business

(0.2
)

(0.2
)
Other comprehensive loss, net of tax

—

—

Stock-based compensation expense

2.6

2.6

Exercise of common stock options

—

102,000 Sh.

0.8

0.8

Vesting of restricted and performance stock, net of employee tax withholdings

—

360,986 Sh.

—

—

Dividends declared on common stock

(3.1
)

(3.1
)
Balance, January 31, 2020

$
0.1

62,680,472 Sh.

$
494.2

$
3.3

$
—

$
(1.7
)

$
495.9

Net loss

(7.6
)

(7.6
)
Other comprehensive loss, net of tax

(0.1
)

(0.1
)
Stock-based compensation expense

2.9

2.9

Vesting and issuance of restricted stock units and awards, net of forfeitures and employee tax withholdings

—

717,054 Sh.

(1.2
)

(1.2
)
Reclassification of liability awards

(1.7
)

(1.7
)
Dividends declared on common stock

(3.3
)

(3.3
)
Balance, April 30, 2020

$
0.1

63,397,526 Sh.

$
494.2

$
(7.6
)

$
—

$
(1.8
)

$
484.9

Net loss

(3.6
)

(3.6
)
Other comprehensive loss, net of tax

(0.8
)

(0.8
)
Stock-based compensation expense

1.6

1.6

Vesting and issuance of restricted stock units and awards, net of forfeitures and employee tax withholdings

—

78,677 Sh.

—

—

Balance, July 31, 2020

$
0.1

63,476,203 Sh.

$
495.8

$
(11.2
)

$
—

$
(2.6
)

$
482.1

	Common Stock				Additional Paid-in			Retained			Accumulated Other Comprehensive			Total Shareholders'
	Amount		# Shares		Capital			Deficit			Loss			Equity
Balance, October 31, 2020	$	0.1		63,403,326 Sh.	$	496.1		$	(21.1	)	$	(2.8	)	$	472.3
Net income (loss)									—						—
Stock-based compensation expense						1.9									1.9
Exercise of common stock options		—		6,000 Sh.		0.2									0.2
Vesting and issuance of restricted stock units and awards, net of forfeitures and employee tax withholdings		—		901,313 Sh.		(1.1	)								(1.1	)
Settlement of liability classified award		—		169,142 Sh.		2.0									2.0
Balance, January 31, 2021	$	0.1		64,479,781 Sh.	$	499.1		$	(21.1	)	$	(2.8	)	$	475.3

	Common Stock				Additional Paid-in			Retained			Accumulated Other Comprehensive			Total Shareholders'			Common Stock				Additional Paid-in		Retained			Non-controlling			Accumulated Other Comprehensive			Total Shareholders'
	Amount		# Shares		Capital			Earnings			Loss			Equity			Amount		# Shares		Capital		Earnings			Interest			Loss			Equity
Balance, October 31, 2018	$	0.1		62,683,808 Sh.	$	492.1		$	40.6		$	(1.4	)	$	531.4
Balance, October 31, 2019																	$	0.1		62,217,486 Sh.	$	490.8	$	15.8		$	0.2		$	(1.7	)	$	505.2
Net loss									(14.6	)					(14.6	)								(9.4	)								(9.4	)
Other comprehensive income (loss), net of tax												—			—
Sale of business																											(0.2	)					(0.2	)
Stock-based compensation expense						1.4									1.4							2.6											2.6
Exercise of common stock options		—		20,000 Sh.		0.1									0.1			—		102,000 Sh.		0.8											0.8
Vesting of restricted and performance stock, net of employee tax withholdings		—		94,237 Sh.		—									—			—		360,986 Sh.		—											—
Dividends declared on common stock									(3.2	)					(3.2	)								(3.1	)								(3.1	)
Balance, January 31, 2019	$	0.1		62,798,045 Sh.	$	493.6		$	22.8		$	(1.4	)	$	515.1
Net income									5.6						5.6
Other comprehensive income (loss), net of tax												(0.2	)		(0.2	)
Stock-based compensation expense						2.9									2.9
Exercise of common stock options		—		54,000 Sh.		0.4									0.4
Vesting of restricted and performance stock, net of employee tax withholdings		—		40,828 Sh.		—									—
Dividends declared on common stock									(3.2	)					(3.2	)
Repurchase and retirement of common stock				(495,475) Sh.		(5.3	)								(5.3	)
Balance, April 30, 2019	$	0.1		62,397,398 Sh.	$	491.6		$	25.2		$	(1.6	)	$	515.3
Net income									5.6						5.6
Other comprehensive loss, net of tax												—			—
Stock-based compensation expense						1.7									1.7
Exercise of common stock options		—		25,999 Sh.		0.1									0.1
Vesting of restricted and performance stock, net of shares withheld for employee taxes		—		6,566 Sh.		—									—
Dividends declared on common stock									(3.2	)					(3.2	)
Repurchase and retirement of common stock				(222,122) Sh.		(3.0	)								(3.0	)
Balance, July 31, 2019	$	0.1		62,207,841 Sh.	$	490.4		$	27.6		$	(1.6	)	$	516.5
Balance, January 31, 2020																	$	0.1		62,680,472 Sh.	$	494.2	$	3.3		$	—		$	(1.7	)	$	495.9

The unaudited Condensed Consolidated Financial Statements include the accounts of REV Group, Inc. (“REV” or “the Company”) and all its subsidiaries. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments (which include normal recurring adjustments, unless otherwise noted) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been condensed or omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited financial statements and notes thereto included in the Annual Report on Form 10-K of the Company for the year ended October 31, ~~2019.~~2020. The interim results are not necessarily indicative of results for the full year. ~~Certain reclassifications have been made to the fiscal year 2019 financial statements to conform to the fiscal year 2020 presentation.~~

Equity Sponsor: The Company’s primary equity holders are funds and an investment vehicle associated with AIP CF IV, LLC, which the Company collectively refers to as “American Industrial Partners,” “AIP” or “Sponsor” and which indirectly own approximately ~~53.2%~~52.4% of REV Group’s voting equity as of ~~July~~January 31, ~~2020.~~2021. AIP is an operations and engineering-focused private equity firm headquartered in New York, New York.

Related Party Transactions: During the three months ended ~~July~~January 31, ~~2020~~2021 and ~~July~~January 31, ~~2019, the Company reimbursed expenses of its primary equity holder in the amount of $0.1 million and less than $0.1 million, respectively. During the nine months ended July 31,~~ 2020, ~~and July 31, 2019,~~ the Company reimbursed expenses of its primary equity holder in the amount of $0.2 million and ~~$0.6~~$0.1 million, respectively. These expenses are included in selling, general and administrative expenses in the Company’s Condensed Unaudited Consolidated Statements of ~~Operations.~~Operations and Comprehensive Income (Loss).

Certain production facilities and offices ~~for two~~ of the Company’s subsidiaries are or were leased from certain members of management. Rent expense under these arrangements totaled $0.1 million and $0.5 million for the three months ended ~~July~~January 31, 2021, and January 31, 2020, ~~and July 31, 2019, respectively. Rent expense under these arrangements totaled $0.7 million and $1.5 million for the nine months ended July 31, 2020, and July 31, 2019,~~ respectively.

The following accounting ~~pronouncements~~pronouncement did not have a material impact on the Company’s consolidated financial statements:

ASC 842 provides a number of optional transition related practical expedients. The Company elected to adopt the standard using the package of practical expedients, which allowed the Company not to reassess prior conclusions about the identification of leases, the classification of leases, and the treatment of initial direct costs. ASC 842 also provides a number of optional practical expedients for an entity’s ongoing lessee accounting. In connection with our evaluation of these practical expedients, the Company has elected not to separate payments for lease components from payments for non-lease components for all classes of leases. Additionally, the Company has elected the short-term lease recognition exemption for all leases that qualify, which means ROU assets and lease liabilities will not be recognized for leases with an initial term of twelve months or less.

Substantially all of the Company’s revenue is recognized from contracts with customers with product shipment destinations in the United States and Canada. The Company accounts for a contract when it has approval and commitment from both parties, the rights and payment terms of the parties are identified, the contract has commercial substance and collectability of consideration is probable. The Company determines the transaction price for each contract at inception based on the consideration that it expects to receive for the goods and services promised under the contract. The transaction price excludes sales and usage-based taxes collected.

The Company’s primary source of revenue is generated from the manufacture and sale of specialty vehicles through its direct sales force or dealer network. The Company also generates revenue through separate contracts that relate to the sale of aftermarket parts and services. Revenue is typically recognized at a point-in-time, when control is transferred, which generally occurs when the product has been shipped to the customer or when it has been picked-up from the Company’s manufacturing facilities. ~~Shipping and handling costs that occur after the transfer of control are fulfillment costs that are accrued when control is transferred.~~ Periodically, certain customers request bill and hold transactions. In such cases, revenue is not recognized until after control has transferred which is generally when the customer has requested such transaction and has been notified that the product (i) has been completed according to customer specifications, (ii) has passed our quality control inspections, and (iii) has been separated from our inventory and is ready for physical transfer to the customer. Warranty obligations associated with the sale of a unit are assurance-type warranties that are a guarantee of the unit’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract.

The Company is generally entitled to bill its customers upon satisfaction of its performance obligations, and payment is usually received shortly after billing. Payments for certain contracts are received in advance of satisfying the related performance obligations. Such payments are recorded as customer advances in the Company’s Condensed Unaudited Consolidated Balance Sheets. The corresponding performance obligations are generally satisfied within one year of the contract inception. During the three months ended ~~July~~January 31, ~~2020~~2021 and ~~July~~January 31, ~~2019,~~2020, the Company recognized ~~$23.5~~$51.4 million and ~~$30.0~~$54.4 million, respectively, of revenue that was included in the customer advance balances of $170.1 million and $129.9 million as of October 31, ~~2019~~2020 and October 31, ~~2018, respectively. During the nine months ended July 31, 2020 and July 31,~~ 2019, ~~the Company recognized $104.1 million and $94.9 million, respectively, of revenue that was included in the customer advance balances as of October 31, 2019 and October 31, 2018,~~ respectively. The Company’s payment terms do not include a significant financing component and the Company does not have significant contract assets.

The Company leases certain administrative and production facilities and equipment under long-term, non-cancelable operating lease agreements. The Company determines if an arrangement is or contains a lease at contract inception and recognizes a ROU asset and a lease liability based on the present value of fixed, and certain index-based lease payments at the lease commencement date. Variable payments are excluded from the present value of lease payments and are recognized in the period in which the payment is made. Lease agreements may include options to extend or terminate the lease or purchase the underlying asset. In situations where the Company is reasonably certain to exercise such options, they are considered in determining the lease term and the associated option payments, or exercise price in the case of an option to purchase, are included in the measurement of the lease liabilities and ROU assets. The Company’s leases generally do not include restrictive financial or other covenants, or residual value guarantees. The Company generally uses its incremental borrowing rate as the discount rate for measuring its lease liabilities, as the Company cannot determine the interest rate implicit in the lease because it does not have access to certain lessor specific information. Lease expense is recognized on a straight-line basis over the lease term. The Company does not have significant finance leases.

During the three ~~and nine~~ months ended ~~July~~January 31, 2021, and January 31, 2020, the Company recognized total operating lease costs of ~~approximately $2.8~~$2.3 million and ~~$7.6~~$2.3 million, respectively, and paid cash of ~~$2.3~~$2.4 million and ~~$6.9~~$2.2 million, respectively, for amounts included in the measurement of lease liabilities.

At ~~July~~January 31, ~~2020,~~2021, future minimum operating lease payments due under ASC 842 are summarized by fiscal year in the table below:

As of ~~July~~January 31, 2021, the weighted average remaining lease term and the weighted average discount rate for operating leases was 4.4 years and 5.0%, respectively. As of January 31, 2020, the weighted average remaining lease term and the weighted average discount rate for operating leases was ~~4.7~~3.3 years and ~~5.0%~~5.1%, respectively.

~~As of October 31, 2019, future minimum operating lease payments (under ASC 840) summarized by fiscal year were as follows:~~

On February 1, 2020, the Company acquired substantially all of the assets and liabilities of Spartan Emergency Response (“Spartan ER”), a leading designer, manufacturer and distributor of custom emergency response vehicles, cabs and chassis for the emergency response market, and its brands, from ~~Spartan Motors, Inc.~~The Shyft Group (NASDAQ: ~~SPAR)~~SHYF). Spartan ER is reported as part of the Fire & Emergency segment. The acquisition increases the Company’s market share in several key product categories and provides access to several large new ~~large~~ municipalities and regional markets. The initial purchase price for Spartan ER was $54.8 million. The initial purchase price was adjusted to $47.3 million ~~subject to an adjustment based on~~in connection with the ~~level of~~post close net working capital ~~at closing, as defined~~adjustments that were finalized in the ~~purchase agreement.~~fourth quarter of fiscal year 2020 and subsequent receipt of $7.5 million from the seller. The net cash consideration paid at closing was funded through the Company’s ABL credit facility. ~~The preliminary~~

During the first quarter of fiscal year 2021, the purchase price allocation was updated to reflect immaterial measurement period adjustments made to inventories and warranty, and certain other assets acquired and liabilities assumed. These updates resulted in a decrease to the cumulative gain on acquisition of ~~$11.9~~$0.4 million, from $8.6 million to $8.2 million, which is included in the Company’s Condensed Unaudited Consolidated Statement of Operations for the nine months ended July 31, 2020. Prior to recognizing the gain, the Company reassessed the measurement and recognition of identifiable assets acquired, and liabilities assumed and concluded that the valuation procedures and resulting preliminary measures were appropriate. The Company believes that its ability to negotiate a purchase price lower than the fair market value of the acquired net assets was due to the limited number of strategic buyers that exist in this specific market and the desire of the sellers to exit the business on an accelerated basis. The Company incurred acquisition related costs of $1.6 million, which are included in selling, general and administrative expenses in the Company’s Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) for the three ~~and nine~~ months ended ~~July~~January 31, ~~2020.~~

As2021. The measurement period adjustments did not have a material impact on the Company’s results of ~~July~~operations during the three months ended January 31, ~~2020, the fair value of the acquired assets, liabilities and gain on acquisition of business, is provisional pending receipt of the final valuation report from a third-party valuation firm.~~2021.

The following table summarizes the ~~preliminary~~final fair values of the assets acquired and liabilities assumed for Spartan ER:

Net sales and operating income attributable to Spartan ER for the three and nine months ended July 31, 2020 were $74.5 million and $137.1 million, and $4.5 million and $5.6 million, respectively. In connection with the acquisition, Spartan ER changed its method for recognizing revenue from over-time to point-in-time to align with the Company. The Company determined that it is impracticable to determine the cumulative effect of applying this change retrospectively because records of certain sales transactions are no longer available for all prior periods. Accordingly, the supplemental proforma disclosures required by ASC 805 have been omitted.

Depreciation expense was ~~$6.2~~$6.1 million and ~~$6.7~~$6.8 million for the three months ended ~~July~~January 31, 2021, and January 31, 2020, ~~and July 31, 2019, respectively, and $20.5 million and $21.5 million for the nine months ended July 31, 2020, and July 31, 2019,~~ respectively.

In connection with the anticipated liquidation of all rental vehicles, the Company recorded a $3.7 million impairment charge during the three months ended July 31, 2020. This impairment charge represents the difference between the carrying value of the assets and expected sale proceeds and is included in the Company’s Condensed Unaudited Consolidated Statement of Operations for the three and nine months ended July 31, 2020.

The change in the net carrying value amount of goodwill consisted of the following:

	July 31, 2020									January 31, 2021
	Weighted- Average Life		Gross		Accumulated Amortization			Net		Weighted- Average Life		Gross		Accumulated Amortization			Net
Finite-lived intangible assets:
Customer relationships		8.0	$	69.8	$	(37.9	)	$	31.9		8.0	$	66.2	$	(40.1	)	$	26.1
Non-compete agreements		5.0		2.0		(1.7	)		0.3		5.0		2.0		(1.9	)		0.1
Trade names		7.0		1.3		(1.3	)		—
				73.1		(40.9	)		32.2				68.2		(42.0	)		26.2
Indefinite-lived trade names				110.1		—			110.1				107.4		—			107.4
Total intangible assets, net			$	183.2	$	(40.9	)	$	142.3			$	175.6	$	(42.0	)	$	133.6

	October 31, 2019									October 31, 2020
	Weighted- Average Life		Gross		Accumulated Amortization			Net		Weighted- Average Life		Gross		Accumulated Amortization			Net
Finite-lived intangible assets:
Customer relationships		8.0	$	126.7	$	(84.0	)	$	42.7		8.0	$	66.2	$	(37.8	)	$	28.4
Order backlog		1.0		6.7		(6.7	)		—
Non-compete agreements		5.0		2.0		(1.3	)		0.7		5.0		2.0		(1.7	)		0.3
Trade names		7.0		3.5		(3.0	)		0.5		7.0		1.3		(1.3	)		—
Technology-related		7.0		0.9		(0.8	)		0.1
				139.8		(95.8	)		44.0				69.5		(40.8	)		28.7
Indefinite-lived trade names				115.9		—			115.9				107.4		—			107.4
Total intangible assets, net			$	255.7	$	(95.8	)	$	159.9			$	176.9	$	(40.8	)	$	136.1

Amortization expense was ~~$3.0~~$2.5 million and ~~$4.1~~$4.0 million for the three months ended ~~July~~January 31, ~~2020,~~2021, and ~~July~~January 31, ~~2019, respectively, and $10.4 and $13.3 million for the nine months ended July 31,~~ 2020, ~~and July 31, 2019,~~ respectively. As of ~~July~~January 31, ~~2020,~~2021, fully amortized intangible assets and the related accumulated amortization related to trade names were written off.

In the first quarter of fiscal year 2019, the Company completed the sale of the assets of its mobility van business, Revability, with annual sales of approximately $40 million. In the second quarter of fiscal year 2019, the Company completed the sale of a Regional Technical Center (“RTC”) for net cash proceeds of $11.4 million. In connection with this sale, the Company recognized a gain on sale of $1.2 million.

In the first quarter of fiscal year 2020, the Company completed the sale of REV Coach. The Company received cash proceeds of $1.1 million in the first quarter of fiscal year 2020, and the remaining $0.9 million in the second quarter of fiscal year 2020.

~~Effective May 8, 2020, and~~In the first quarter of fiscal year 2021, in connection with a strategic review of the product portfolio, the Company ~~completed~~made the decision to divest its REV Brazil business. The assets and liabilities to be disposed of in connection with this transaction met the held for sale criteria as of ~~its shuttle bus businesses~~January 31, 2021. The carrying value of the net assets held for ~~$48.9 million~~sale, inclusive of the cumulative translation adjustment balance attributable to this business, was greater than their fair value, less costs to sell, resulting in ~~cash. As a result, the Company recorded~~ a loss ~~on sale~~ of ~~$9.3~~$3.8 million, which is included in the ~~Company’s~~ Condensed Unaudited Consolidated ~~Statement~~Statements of Operations and Comprehensive Income (Loss) for the ~~nine~~three months ended ~~July~~January 31, ~~2020.~~2021. The ~~Company used the proceeds from the disposition to reduce outstanding borrowings. The shuttle bus businesses were previously~~REV Brazil business is reported as part of the ~~Commercial~~Fire & Emergency segment.

As of ~~October~~January 31, ~~2019,~~2021, assets and liabilities held for sale consisted of the following balances related to the sale of REV ~~Coach: property,~~Brazil: Property, plant and equipment, net—$~~0.2~~0.9 million, ~~inventories,~~Inventories, net—$~~14.0~~1.8 million, ~~accounts~~Accounts receivable, net—$~~0.4~~5.6 million, ~~other~~Other current and long-term assets—$~~4.9~~1.4 million, ~~accounts~~Accounts payable—$~~11.7~~4.8 million and ~~other~~Other current and long-term liabilities—$~~3.7~~4.5 million.

~~Effective April 25, 2017,~~On January 31, 2020, the Company entered into a ~~$350.0 million~~Second Amended and Restated revolving credit and guaranty agreement (the ~~“April 2017 ABL~~“ABL Facility” or “ABL Agreement”) with a syndicate of lenders. The ~~April 2017~~ ABL Facility consists of: (i) Revolving Loans, (ii) Swing Line Loans, and (iii) Letters of Credit, aggregating up to a combined maximum of ~~$350.0~~$500.0 million. The total amount borrowed under the ~~April 2017~~ ABL Facility is subject to a $30.0 million sublimit for Swing Line loans and a $35.0 million sublimit for Letters of Credit, along with certain borrowing base and other customary restrictions as defined in the ABL Agreement. The ~~Company incurred $4.9 million of~~ debt issuance costs ~~related to~~capitalized in connection with the ~~April 2017 ABL Facility. The amount of debt issuance costs is~~initial agreement and subsequent amendments are included in other long-term assets in the Company’s Condensed Unaudited Consolidated Balance Sheets.

The April 2017 ABL Facility allows for incremental borrowing capacity in an aggregate amount of up to $100.0 million, plus the excess, if any, of the borrowing base then in effect over total commitments then in effect. Any such incremental borrowing capacity is subject to receiving additional commitments from lenders and certain other customary conditions. The April 2017 ABL Facility matures on April 25, 2022. The Company may prepay principal, in whole or in part, at any time without penalty.

Revolving Loans under the ~~April 2017~~ ABL Facility bear interest at rates equal to, at the Company’s option, either a base rate plus an applicable margin, or a Eurodollar rate plus an applicable margin. Applicable interest rate margins are initially 0.75% for all base rate loans and 1.75% for all Eurodollar rate loans (with the Eurodollar rate having a floor of 0%), subject to adjustment based on utilization in accordance with the ABL Agreement. The weighted-average interest rate on borrowings outstanding under the ~~April 2017~~ ABL Facility was ~~2.11%~~1.91% as of ~~July~~January 31, ~~2020.~~2021. Interest is payable quarterly for all base rate loans and is payable monthly or quarterly for all Eurodollar rate loans.

The lenders under the ~~April 2017~~ ABL Facility have a first priority security interest in substantially all accounts receivable and inventory of the Company, and a second priority security interest in substantially all other assets of the Company.

The ~~April 2017~~ ABL Facility contains customary representations and warranties, affirmative and negative covenants, subject in certain cases to customary limitations, exceptions and exclusions. The ~~April 2017~~ ABL Facility also contains certain customary events of default, which should such events occur, could result in the termination of the commitments under the ~~April 2017~~ ABL Facility and the acceleration of all outstanding borrowings under it. The ~~April 2017~~ ABL Facility contains a financial covenant restricting the Company from allowing its fixed charge coverage ratio to drop below 1.00 to 1.00 during a compliance period, which is triggered when the availability under the ~~April 2017~~ ABL Facility falls below a threshold set forth in the credit agreement.

The Company was in compliance with all financial covenants under the ~~April 2017~~ ABL Facility as of ~~July~~January 31, ~~2020.~~2021. As of ~~July~~January 31, ~~2020,~~2021, the Company’s availability under the ~~April 2017~~ ABL Facility was ~~$220.6~~$230.0 million.

The fair value of the ~~April 2017~~ ABL Facility approximated book value at both ~~July~~January 31, ~~2020~~2021 and October 31, ~~2019.~~2020.

~~Effective~~On April ~~25, 2017,~~29, 2020, the Company entered into a ~~$75.0~~Fifth Amended and Restated $175.0 million term loan agreement (“Term Loan” and “Term Loan Agreement”), as Borrower with certain subsidiaries of the Company, acting as guarantors of debt. Principal may be prepaid at any time during the term of the Term Loan without penalty. ~~The Company incurred $2.0 million of debt issuance costs related to the Term Loan.~~

The Term Loan Agreement allows for incremental facilities in an aggregate amount of up to $125.0 million. Any such incremental facilities are subject to receiving additional commitments from lenders and certain other customary conditions. The Term Loan agreement requires quarterly payments of 0.25% of the original principal balance, with remaining principal payable at maturity, April 25, 2022.

The lenders under the Term Loan have a second priority security interest in substantially all accounts receivable and inventory of the Company.

Applicable interest rate margins for the Term Loan are 3.25% for base rate loans and 4.25% for Eurodollar rate loans (with the Eurodollar rate having a floor of 1.00%) ~~as a result of the April 29, 2020 Term Loan amendment.~~. Interest is payable quarterly for all base rate loans and is payable monthly or quarterly for all Eurodollar rate loans. The weighted-average interest rate on borrowings outstanding under the Term Loan was 5.25% as of ~~July~~January 31, ~~2020.~~2021.

The Term Loan Agreement contains customary representations and warranties, affirmative and negative covenants, in each case, subject to customary limitations, exceptions and exclusions. The Term Loan Agreement also contains certain customary events of default. The Term Loan Agreement contains a financial covenant restricting the Company from allowing its maximum leverage ratio to be above 5.25 to 1.00. This ratio will decline by 25 basis points each subsequent quarter, to a final level of 4.25 to 1.00 in first quarter of fiscal 2022.

The Company was in compliance with all financial covenants under the Term Loan as of ~~July~~January 31, ~~2020.~~2021.

The fair value of the Term Loan approximated book value at both ~~July~~January 31, ~~2020~~2021 and October 31, ~~2019.~~2020.

The Company’s products generally carry explicit warranties that extend from several months to several years, based on terms that are generally accepted in the marketplace. Selected components (such as engines, transmissions, tires, etc.) included in the Company’s end products may include warranties from original equipment manufacturers (“OEM”). These OEM warranties are passed on to the end customer of the Company’s products, and the customer deals directly with the applicable OEM for any issues encountered on those components.

Accrued warranty is classified in the Company’s ~~consolidated balance sheets~~Condensed Unaudited Consolidated Balance Sheets as follows:

On March 20, 2018, the Company’s Board of Directors authorized up to $50.0 million of repurchases of the Company’s issued and outstanding common stock with an expiration date of March 19, 2020. On September 5, 2018, the Company’s Board of Directors authorized an additional $50.0 million of repurchases of the Company’s issued and outstanding common stock with an expiration date of September 4, 2020. The Company’s share repurchase program is executed from time to time through open market or through private transactions. Shares purchased under the share repurchase program are retired and returned to authorized and unissued status. During fiscal year 2019, the Company repurchased 717,597 shares under this repurchase program at a total cost of $8.3 million at an average price per share of $11.62. There were 0 repurchases under this program during the three and nine months ended July 31, 2020. As of July 31, 2020, the Company had $38.3 million of authorization remaining under this program. The Company is no longer permitted to repurchase stock under the provisions of our Term Loan, as amended on April 29, 2020, from the date of the amendment through the maturity of the Term Loan Agreement.

Basic earnings per common share (“EPS”) is computed by dividing net income (loss) ~~income~~ by the weighted average number of common shares outstanding. Diluted EPS is computed by dividing net income (loss) ~~income~~ by the weighted-average number of common shares outstanding assuming dilution. The difference between basic EPS and diluted EPS is the result of the dilutive effect of outstanding stock options, performance stock units and restricted stock units. The table below reconciles basic weighted-average common shares outstanding to diluted weighted-average shares outstanding for the three ~~and nine~~ months ended ~~July~~January 31, ~~2020~~2021 and ~~July~~January 31, ~~2019:~~2020:

The table below represents exclusions from the calculation of weighted-average shares outstanding assuming dilution due to the anti-dilutive effect of the common stock equivalents for the three ~~and nine~~ months ended ~~July~~January 31, ~~2020~~2021 and ~~July~~January 31, ~~2019:~~2020:

For interim financial reporting, the Company estimates its annual effective tax rate based on the projected income for its entire fiscal year and records a provision (benefit) for income taxes on a quarterly basis based on the estimated annual effective income tax rate, adjusted for any discrete tax items.

On March 27, 2020, the U.S. enacted the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The Cares Act is an emergency economic stimulus package that includes spending and tax benefits to strengthen the U.S. economy and fund a nationwide effort to curtail the effect of COVID-19. While the CARES Act provides sweeping tax changes in response to the COVID-19 pandemic, some of the more significant provisions include removal of certain limitations on utilization of net operating losses, allowing for net operating loss carrybacks for certain past and future losses, increasing the ability to deduct interest expense, as well as amending certain provisions of the previously enacted Tax Cuts and Jobs Act. The Company continued to evaluate the impact of the CARES Act during the quarter and recorded a cumulative tax benefit of $3.5 million for the carryback of the fiscal year 2018 federal net operating loss. As the Company is carrying the losses back to years beginning before January 1, 2018, the tax benefit of $3.5 million is a result of the rate differential between the previous 35% federal tax rate and current statutory rate of 21%.

The Company recorded income tax ~~benefit~~expense of ~~$0.5~~$0.0 million for the three months ended ~~July~~January 31, ~~2020,~~2021, compared to $2.6 million of benefit, or ~~11.6%~~22.0% of pre-tax loss, ~~compared to $1.9 million of expense, or 25.7% of pre-tax income,~~ for the three months ended ~~July~~January 31, ~~2019.~~2020. Results for the three months ended ~~July~~January 31, 2020 were unfavorably impacted by ~~$0.8 million of net discrete tax expense primarily related to stock-based compensation tax deductions. Results for the three months ended July 31, 2019 were unfavorably impacted by $0.1~~$0.2 million of net discrete tax expenses primarily related to ~~a federal provision-to-return adjustment.~~

The Company recorded income tax benefit of $13.2 million for the nine months ended July 31, 2020, or 39.4% of pre-tax loss, compared to less than $0.1 million of expense, or (0.2)% of pre-tax loss, for the nine months ended July 31, 2019. Results for the nine months ended July 31, 2020 were favorably impacted by $4.6 million of net discrete tax benefits primarily related to net operating loss carrybacks allowable under the CARES Act and the nontaxable gain on the acquisition of Spartan ER which were offset by the net discrete tax expense related to stock-based compensation tax ~~deductions. Results for the nine months ended July 31, 2019 were unfavorably impacted by $0.8 million of net discrete expenses primarily related to stock-based compensation tax deductions.~~deductions.

The Company periodically evaluates its valuation allowance requirements as facts and circumstances change and may adjust its deferred tax asset valuation allowances accordingly. It is reasonably possible that the Company will either add to or reverse a portion

of its existing deferred tax asset valuation allowances in the future. Such changes in the deferred tax asset valuation allowances will be reflected in the current operations through the Company’s effective income tax rate. ~~During the three and nine months ended July 31, 2020, there were no changes to the Company’s valuation allowances.~~

The Company’s liability for unrecognized tax benefits, including interest and penalties, was ~~$2.8~~$3.1 million as of ~~July~~January 31, ~~2020~~2021 and ~~$2.6~~$3.1 million as of October 31, ~~2019.~~2020. The unrecognized tax benefits are presented in other long-term liabilities in the Company’s Condensed Unaudited Consolidated Balance Sheets for the period ended ~~July~~January 31, ~~2020. During the next twelve months, it is reasonably possible that $0.4 million of the unrecognized tax benefits, if recognized, would affect the annual effective income tax rate.~~2021. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in its Condensed Unaudited Consolidated ~~Statement~~Statements of ~~Operations.~~Operations and Comprehensive Income (Loss).

The Company regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves. As of ~~July~~January 31, ~~2020,~~2021, the Company believes that it is more likely than not that the tax positions it has taken will be sustained upon the resolution of its audits resulting in no material impact on its consolidated financial position and the results of operations and cash flows. However, the final determination with respect to any tax audits, and any related litigation, could be materially different from the Company’s estimates and/or from its historical income tax provisions and income tax liabilities and could have a material effect on operating results and/or cash flows in the periods for which that determination is made. In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties, and/or interest assessments related to income tax examinations.

Personal Injury Actions and Other: Product and general liability claims arise against the Company from time to time in the ordinary course of business. These claims are generally covered by third-party insurance. There is inherent uncertainty as to the eventual resolution of unsettled claims. Management, however, believes that any losses will not have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows.

Market Risks: The Company is contingently liable under bid, performance and specialty bonds and has open standby letters of credit issued by the Company’s banks in favor of third parties as follows:

~~The increase in performance, bid and specialty bonds is attributable to municipal contracts within our Commercial segment and customer contracts related to Spartan ER.~~

Chassis Contingent Liabilities: The Company obtains certain vehicle chassis from automobile manufacturers under converter pool agreements. These agreements generally provide that the manufacturer will supply chassis at the Company’s various production facilities under the terms and conditions set forth in the agreement. The manufacturer does not transfer the certificate of origin to the Company and, accordingly, the chassis are treated as consigned inventory of the automobile manufacturer. Upon being put into production, the Company becomes obligated to pay the manufacturer for the chassis. Chassis are typically converted and delivered to customers within 90 to 120 days of receipt. If the chassis are not converted within this timeframe of delivery, the Company generally purchases the chassis and records inventory, or the Company is obligated to begin paying an interest charge on this inventory until purchased. Such agreements are customary in the industries in which the Company operates and the Company’s exposure to loss under such agreements is limited by the value of the ~~vehicles~~vehicle chassis that would be ~~repossessed and~~ resold to mitigate any losses. The Company’s contingent liability under such agreements was ~~$42.6~~$32.7 million and ~~$48.6~~$40.4 million as of ~~July~~January 31, ~~2020~~2021 and October 31, ~~2019,~~2020, respectively.

Repurchase Commitments: The Company has repurchase agreements with certain lending institutions. The repurchase commitments are on an individual unit basis with a term from the date it is financed by the lending institution through payment date by the dealer or other customer, generally not exceeding two years. The Company also repurchases inventory from dealers from time to time due to state law or regulatory requirements that require manufacturers to repurchase inventory if a dealership exits the business. The Company’s outstanding obligations under such agreements were ~~$163.6~~$197.0 million and ~~$212.5~~$191.5 million as of ~~July~~January 31, ~~2020,~~2021, and October 31, ~~2019,~~2020, respectively. This value represents the gross value of all vehicles under repurchase agreements and does not take into consideration proceeds that would be received upon resale of repossessed vehicles, which would be used to reduce the Company’s ultimate net liability. Such agreements are customary in the industries in which the Company operates and the Company’s exposure to loss under such agreements is limited by the potential loss on the resale value of the inventory which is required to be repurchased. Losses incurred under such arrangements have not been significant and the

Company expects this pattern to continue. The reserve for losses included in other liabilities on contracts outstanding at ~~July~~January 31, ~~2020~~2021 and October 31, ~~2019~~2020 is immaterial.

Guarantee Arrangements: The Company is party to multiple agreements whereby it guarantees indebtedness of others, including losses under loss pool agreements. The Company estimated that its maximum loss exposure under these contracts was ~~$22.5~~$19.3 million and ~~$25.5~~$21.1 million at ~~July~~January 31, ~~2020~~2021 and October 31, ~~2019,~~2020, respectively. Under the terms of these and various related agreements and upon the occurrence of certain events, the Company generally has the ability to, among other things, take possession of the underlying collateral. If the financial condition of the customers and dealers were to deteriorate and result in their inability to make payments, then additional accruals may be required. While the Company does not expect to experience losses under these agreements that are materially in excess of the amounts reserved, it cannot provide any assurance that the financial condition of the third parties will not deteriorate resulting in the third party’s inability to meet their obligations.

In the event that third parties are unable to meet obligations under these agreements, the Company cannot guarantee that the collateral underlying the agreements will be available or sufficient to avoid losses materially in excess of the amounts reserved. Any losses under these guarantees would generally be mitigated by the value of any underlying collateral, primarily financed vehicles, and are generally subject to the finance company’s ability to provide the Company clear title to foreclosed equipment and other conditions. During periods of economic weakness, collateral values generally decline and can contribute to higher exposure to losses.

Other Matters: The Company is, from time to time, party to various legal proceedings arising out of ordinary course of business. The amount of alleged liability, if any, from these proceedings cannot be determined with certainty; however, the Company believes that its ultimate liability, if any, arising from pending legal proceedings, as well as from asserted legal claims and known potential legal

claims, which are probable of assertion, taking into account established accruals for estimated liabilities, should not be material to the business, financial condition or results of operations.

A consolidated federal putative securities class action and a consolidated state putative securities class action are pending against the Company and certain of its officers and directors. These actions collectively purport to assert claims on behalf of putative classes of purchasers of the Company’s common stock in or traceable to its January 2017 IPO, purchasers in its secondary offering of common stock in October 2017, and purchasers from October 10, 2017 through June 7, 2018. The state action also names certain of the underwriters for the Company’s IPO or secondary offering as defendants. The federal and state courts each consolidated multiple separate actions pending before them, the first of which was filed on June 8, 2018. The actions have alleged certain violations of the Securities Act of 1933 and, for the federal action, the Securities Exchange Act of 1934. The consolidated state action is currently stayed in favor of the consolidated federal action.

Collectively, the actions seek certification of the putative classes asserted and compensatory damages and attorneys’ fees and costs. The underwriter defendants have notified the Company of their intent to seek indemnification from the Company pursuant to the IPO underwriting agreement regarding the claims asserted with respect to the IPO, and the Company expects the underwriters to do the same in regard to the claims asserted with respect to the October 2017 offering. Two purported derivative actions, which have since been consolidated, were also filed in federal court in Delaware in 2019 against the Company’s directors (with the Company as a nominal defendant), premised on allegations similar to those asserted in the consolidated federal securities litigation. The Company and the other defendants intend to defend these lawsuits vigorously. Additional lawsuits may be filed and, at this time, the Company is unable to predict the outcome of the lawsuits, the possible loss or range of loss, if any, associated with the resolution of the lawsuits, or any potential effect that it may have on the Company or its operations.

The Company is organized into 3 reportable segments based on management’s process for making operating decisions, allocating capital and measuring performance, and based on the similarity of products, customers served, common use of facilities, and economic characteristics. The Company’s segments are as follows:

Fire & Emergency: This segment includes KME, E-One, Ferrara, Spartan ER, American Emergency Vehicles, Leader Emergency Vehicles, Horton Emergency Vehicles, REV Ambulance Orlando and REV Brazil. These business units manufacture and market commercial and custom fire and emergency vehicles primarily for fire departments, airports, other governmental units, contractors, hospitals and other care providers in the United States and other countries.

Commercial: This segment includes Collins Bus, ENC, Capacity and Lay-Mor. Collins Bus manufactures, markets and distributes school buses, normally referred to as Type A school buses. ENC manufactures, markets and distributes municipal transit buses, primarily used for public transportation. Capacity manufactures, markets and distributes trucks used in terminal type operations, i.e., rail yards, warehouses, rail terminals and shipping terminals/ports. Lay-Mor manufactures, markets and distributes industrial sweepers for both the commercial and rental markets. ~~On May 8, 2020, the Company sold its shuttle bus~~

~~businesses which included Goshen Coach, ElDorado National (Kansas), Federal Coach, Champion and World Trans. Refer to Note 8, Divestiture Activities, for further details.~~

Recreation: This segment includes REV Recreation Group (“RRG”), Goldshield Fiberglass, Inc. (“Goldshield”), Renegade, Midwest and Lance, and their respective manufacturing facilities, service and parts divisions. RRG primarily manufactures, markets and distributes Class A RVs in both gas and diesel models. Renegade primarily manufacturers, markets and distributes Class C and “Super C” RVs. Midwest manufactures, markets and distributes Class B RVs and luxury vans. Lance manufactures, markets and distributes truck campers and towable ~~campers and toy haulers.~~campers. Goldshield manufactures, markets and distributes fiberglass reinforced molded parts to a diverse cross section of original equipment manufacturers and other commercial and industrial customers, including various components for RRG, which is one of Goldshield’s primary customers.

For purposes of measuring financial performance of its business segments, the Company does not allocate to individual business segments costs or items that are of a corporate nature. The caption “Corporate, Other & Elims” includes corporate office expenses, results of insignificant operations, intersegment eliminations and income and expense not allocated to reportable segments.

Total assets of the business segments exclude general corporate assets, which principally consist of cash and cash equivalents, certain property, plant and equipment and certain other assets pertaining to corporate and other centralized activities.

Intersegment sales generally include amounts invoiced by a segment for work performed for another segment. Amounts are based on actual work performed and agreed-upon pricing which is intended to be reflective of the contribution made by the supplying business segment. All intersegment transactions have been eliminated in consolidation.

	Three Months Ended July 31, 2020											Three Months Ended January 31, 2021
	Fire & Emergency		Commercial		Recreation		Corporate, Other & Elims			Consolidated		Fire & Emergency		Commercial		Recreation		Corporate, Other & Elims			Consolidated
Net sales	$	306.7	$	92.4	$	182.7	$	0.4		$	582.2	$	280.6	$	83.1	$	190.2	$	0.1		$	554.0
Depreciation and amortization	$	3.1	$	1.1	$	3.4	$	1.6		$	9.2	$	3.1	$	0.7	$	3.6	$	1.2		$	8.6
Capital expenditures	$	1.0	$	0.3	$	0.2	$	0.5		$	2.0	$	1.3	$	0.8	$	0.4	$	0.4		$	2.9
Total assets	$	766.9	$	205.9	$	309.0	$	127.6		$	1,409.4	$	692.0	$	205.7	$	319.1	$	42.3		$	1,259.1
Adjusted EBITDA	$	12.9	$	10.3	$	12.1	$	(13.9	)			$	10.2	$	7.1	$	15.1	$	(9.2	)

	Nine Months Ended July 31, 2019											Three Months Ended January 31, 2020
	Fire & Emergency		Commercial		Recreation		Corporate, Other & Elims			Consolidated		Fire & Emergency		Commercial		Recreation		Corporate, Other & Elims			Consolidated
Net sales	$	699.0	$	514.5	$	542.6	$	(5.3	)	$	1,750.8	$	206.5	$	158.2	$	166.8	$	0.6		$	532.1
Depreciation and amortization	$	10.6	$	6.7	$	12.0	$	5.5		$	34.8	$	3.5	$	1.9	$	3.5	$	1.9		$	10.8
Capital expenditures	$	5.0	$	3.1	$	3.0	$	3.0		$	14.1	$	1.7	$	0.6	$	0.8	$	0.1		$	3.2
Total assets	$	622.8	$	328.5	$	336.6	$	118.2		$	1,406.1	$	632.0	$	272.8	$	330.3	$	170.9		$	1,406.0
Adjusted EBITDA	$	35.8	$	39.7	$	39.4	$	(32.2	)			$	1.7	$	10.8	$	7.0	$	(8.2	)

In considering the financial performance of the business, the chief operating decision maker analyzes the primary financial performance measure of Adjusted EBITDA. Adjusted EBITDA is defined as net income for the relevant period before depreciation and amortization, interest expense and income taxes, as adjusted for items management believes are not indicative of the Company’s ongoing operating performance. Adjusted EBITDA is not a measure defined by U.S. GAAP but is computed using amounts that are determined in accordance with U.S. GAAP. A reconciliation of this performance measure to net income (loss) is included below.

The Company believes Adjusted EBITDA is useful to investors and used by management for measuring profitability because the measure excludes the impact of certain items which management believes have less bearing on the Company’s core operating performance, and allows for a more meaningful comparison of operating fundamentals between companies within its industries by eliminating the impact of capital structure and taxation differences between the companies. Additionally, Adjusted EBITDA is used by management to measure and report the Company’s financial performance to the Company’s Board of Directors, assists in providing a meaningful analysis of the Company’s operating performance and is used as a measurement in incentive compensation for management.

Provided below is a reconciliation of segment Adjusted EBITDA to net income (loss) ~~income:~~:

	Three Months Ended July 31,						Nine Months Ended July 31,						Three Months Ended January 31,
	2020			2019			2020			2019			2021			2020
Fire & Emergency Adjusted EBITDA	$	12.9		$	12.1		$	25.1		$	35.8		$	10.2		$	1.7
Commercial Adjusted EBITDA		10.3			19.4			28.1			39.7			7.1			10.8
Recreation Adjusted EBITDA		12.1			12.8			17.9			39.4			15.1			7.0
Corporate and Other Adjusted EBITDA		(13.9	)		(10.8	)		(31.5	)		(32.2	)		(9.2	)		(8.2	)
Depreciation and amortization		(9.2	)		(10.9	)		(30.9	)		(34.8	)		(8.6	)		(10.8	)
Interest expense, net		(5.7	)		(8.4	)		(20.3	)		(24.2	)		(5.5	)		(7.3	)
Benefit (provision) for income taxes		0.5			(1.9	)		13.2			—
Benefit for income taxes														—			2.6
Transaction expenses		(0.6	)		(0.5	)		(2.6	)		(0.7	)		(2.3	)		(1.1	)
Sponsor expense reimbursement		(0.1	)		—			(0.2	)		(0.6	)		(0.2	)		(0.1	)
Restructuring costs		(2.5	)		(1.3	)		(6.0	)		(4.2	)		(1.0	)		(0.6	)
Restructuring related charges		(0.7	)		—			(3.9	)		—
Stock-based compensation expense		(1.8	)		(2.5	)		(7.2	)		(7.3	)		(1.9	)		(2.6	)
Legal matters		(0.1	)		(0.8	)		(1.6	)		(5.3	)		(0.4	)		(0.1	)
Loss on sale of business		(0.5	)		—			(9.3	)		—
Gain on acquisition of business		—			—			11.9			—
Impairment charges		(3.7	)		—			(3.7	)		(2.8	)
(Losses) earnings attributable to assets held for sale		(0.6	)		(1.0	)		0.8			(3.3	)
Net loss on sale of assets and business held for sale														(2.7	)		—
Loss on acquisition of business														(0.4	)		—
Losses attributable to assets held for sale														(0.2	)		(0.6	)
Deferred purchase price payment		—			(0.6	)		(0.1	)		(2.8	)		—			(0.1	)
Net (loss) income	$	(3.6	)	$	5.6		$	(20.3	)	$	(3.3	)
Net income (loss)													$	—		$	(9.4	)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

This management’s discussion and analysis should be read in conjunction with the Condensed Unaudited Consolidated Financial Statements and risk factors contained in this Form 10-Q as well as the Management’s Discussion and Analysis and Risk Factors and audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K filed on ~~December 18, 2019.~~January 7, 2021.

REV is a leading designer, manufacturer, and distributor of specialty vehicles and related aftermarket parts and services. We serve a diversified customer base, primarily in the United States, through three segments: Fire & Emergency, Commercial, and Recreation. We provide customized vehicle solutions for applications, including essential needs for public services (ambulances, fire apparatus, school buses, and transit buses), commercial infrastructure (terminal trucks and industrial sweepers) and consumer leisure (recreational vehicles). Our diverse portfolio is made up of well-established principal vehicle brands, including many of the most recognizable names within their industry. Several of our brands pioneered their specialty vehicle product categories and date back more than 50 years. We believe that ~~in most of our markets,~~ we hold the first, or second and third market share ~~position~~positions, and approximately ~~62%~~88% of our net sales during the ~~third~~first quarter of fiscal year ~~2020~~2021 came from products where we believe we hold such share ~~positions.~~position.

We serve a diversified customer base primarily in the United States through the following segments:

Fire & Emergency – ~~Our~~The Fire & Emergency segment sells fire apparatus equipment under the Emergency One ~~(E-ONE)~~(“E-ONE”), Kovatch Mobile Equipment ~~(KME)~~(“KME”), Ferrara, Spartan, Smeal and Ladder Tower brands, and ambulances under the American Emergency Vehicles ~~(AEV)~~(“AEV”), Horton Emergency Vehicles ~~(HEV)~~(“Horton”), Leader Emergency Vehicles ~~(LEV)~~(“Leader”), ~~Marque, McCoy Miller,~~ Road Rescue, Wheeled Coach and Frontline brands. We believe we are the largest manufacturer by unit volume of fire and emergency vehicles in the United States and have one of the industry’s broadest portfolios of products including Type I ambulances (aluminum body mounted on a heavy truck-style chassis), Type II ambulances (van conversion ~~ambulance typically favored for non-emergency patient transportation)~~ambulance), Type III ambulances (aluminum body mounted on a van-style chassis), pumpers (fire apparatus on a custom or commercial chassis with a water pump and ~~small~~water tank to extinguish fires), ladder trucks (fire apparatus with stainless steel or aluminum ladders), tanker trucks and rescue, aircraft rescue firefighting (“ARFF”), custom cabs & chassis and other vehicles. Each of our individual brands is distinctly positioned and targets certain price and feature points in the market such that dealers often carry, and customers often buy more than one REV Fire & Emergency product line. On February 1, 2020, the Company acquired Spartan Emergency Response (“Spartan ER”), a leading designer, manufacturer and distributor of custom emergency response vehicles, cabs and chassis for the emergency response market.

Commercial – Our Commercial segment serves the bus ~~and commercial markets~~market through the ~~following principal brands:~~ Collins Bus and ENC brands. We serve the terminal truck market through the Capacity brand and ~~Lay-Mor.~~the sweeper market through the Lay-Mor brand. Our products in the Commercial segment include transit buses (large municipal buses where we build our own chassis and body), Type A school buses (small school bus built on commercial chassis), ~~street~~ sweepers (three- and four-wheel versions used in road construction activities), and terminal trucks (specialized vehicles which move freight in warehouses, or intermodal yards, distribution and fulfillment centers and ports). ~~On May 8, 2020,~~Within each market, we produce many customized configurations to address the ~~Company sold its shuttle bus businesses which included Goshen Coach, ElDorado National (Kansas), Federal Coach, Champion and World Trans. Refer to Note 8, Divestiture Activities,~~diverse needs of ~~the Notes to Condensed Unaudited Consolidated Financial Statements for further details.~~our customers.

Recreation – Our Recreation segment serves the RV market through ~~seven~~the following principal brands: American Coach, Fleetwood RV, ~~Monaco Coach,~~ Holiday Rambler, Renegade, Midwest and Lance. We believe our brand portfolio contains some of the longest standing, most recognized brands in the RV industry. Under these brands, REV provides a variety of highly recognized motorized and towable RV ~~line-makes~~models such as: American Eagle, Bounder, Pace Arrow, Discovery LXE, Verona, Weekender and Lance, among others. Our products in the Recreation segment include Class A motorized RVs (motorhomes built on a ~~heavy duty~~heavy-duty chassis with either diesel or gas engine configurations), Class C and “Super C” motorized RVs (motorhomes built on a commercial truck or van chassis), Class B RVs (motorhomes built out onwithin a van ~~chassis)~~chassis and high-end luxury van conversions), and towable travel trailers and truck campers. The Recreation segment also includes Goldshield Fiberglass, which produces a wide range of custom molded fiberglass products for the heavy-duty truck, RV and broader industrial markets.

Our business is impacted by the U.S. economic environment, employment levels, consumer confidence, municipal spending, municipal tax receipts, changes in interest rates and instability in securities markets around the world, among other factors. In particular, changes in the U.S. economic climate can impact demand in key end markets. In addition, ~~the Company is~~we are susceptible to supply chain disruptions resulting from the impact of tariffs and global macro-economic factors (refer to “Impact of COVID-19” section below), which can have a dramatic effect, either directly or indirectly, on the availability, lead-times and costs associated with raw materials and parts.

RV purchases are discretionary in nature and therefore sensitive to the availability of financing, consumer confidence, unemployment levels, levels of disposable income and changing levels of consumer home equity, among other factors. RV markets are affected by general U.S. and global economic conditions, which create risks that future economic downturns will further reduce consumer demand and negatively impact our sales.

While less economically sensitive than the Recreation segment, the Fire & Emergency ~~segment~~ and the Commercial ~~segment~~segments are also impacted by the overall economic environment. Local tax revenues are an important source of funding for fire and emergency response departments. Fire and emergency products and buses are typically a larger cost item for municipalities and their service life is relatively long, making the purchase more deferrable, which can result in reduced demand for our products. In addition to commercial demand, local, state and federal tax revenues can be an important source of funding for many of our bus products including Type A school buses and transit buses. Volatility in tax revenues or availability of funds via budgetary appropriation can have a negative impact on the demand for these products.

A decrease in employment levels, consumer confidence or the availability of financing, or other adverse economic events, or the failure of actual demand for our products to meet our estimates, could negatively affect the demand for our products. Any decline in overall customer demand in markets in which we operate could have a material adverse effect on our operating performance.

In a typical year, our operating results are impacted by seasonality. Historically, the slowest ~~quarters have~~sales volume quarter has been the first ~~and second~~ fiscal ~~quarters~~quarter when the purchasing seasons for vehicles, such as school buses, RVs and sweepers are the lowest due to the colder weather and the relatively long time until the summer vacation season, and the fact that the school year is underway with municipalities and school bus contractors utilizing their existing fleets to transport student populations. Sales of our products have typically been higher in the second, third and fourth fiscal quarters (with the fourth fiscal quarter typically being the strongest) due to better weather, the vacation season, buying habits of RV dealers and end-users, timing of government/municipal customer fiscal years, and the beginning of a new school year. Our quarterly results of operations, cash flows, and liquidity are likely to be impacted by these seasonal patterns. Sales and earnings for other vehicles that we produce, such as essential emergency vehicles and commercial bus fleets, are less seasonal, but fluctuations in sales of these vehicles can also be impacted by timing surrounding the fiscal years of municipalities and commercial customers, as well as the timing and amounts of multi-unit orders.

We actively evaluate opportunities to improve and expand our business through targeted acquisitions that are consistent with our strategy. ~~On occasion, we~~We also may dispose of certain components of our business that no longer fit within our overall strategy. Historically, a significant component of our growth has been through acquisitions of businesses. We typically incur upfront costs as we integrate acquired businesses and implement our operating philosophy at newly acquired companies, including consolidation of supplies and materials, purchases, improvements to production processes, and other restructuring initiatives. The benefits of these integration efforts and divestiture activities may not positively impact our financial results until subsequent periods.

We recognize acquired assets and liabilities at fair value. This includes the recognition of identified intangible assets and goodwill which, in the case of definite-life intangible assets, are then amortized over their expected useful lives, which typically results in an increase in amortization expense. In addition, assets acquired and liabilities assumed generally include tangible assets as well as contingent assets and liabilities.

On February 1, 2020, the Company acquired Spartan ER, a leading designer, manufacturer and distributor of custom emergency response vehicles, cabs and chassis for the emergency response market. Refer to Note 4, Acquisition, of the Notes to Condensed Unaudited Consolidated Financial Statements for further details.

~~On May 8, 2020, the Company sold its shuttle bus businesses. Refer to Note 8, Divestiture Activities, of the Notes to Condensed Unaudited Consolidated Financial Statements for further details.~~

During our second quarter of fiscal year 2020, the novel coronavirus known as "COVID-19" spread throughout the world creating a global pandemic. The pandemic triggered a significant downturn in global commerce and these challenging market conditions may continue for an extended period of time. As a result of the spread of COVID-19, we have also experienced disruption and delays in our supply chain, customer demand changes, and logistics challenges, including our customers’ ability to inspect and take delivery of vehicles.

Many of the vehicles and parts we supply are vital to serving communities across our nation. The Cybersecurity and Infrastructure Security Agency (CISA), which implements the Secretary of Homeland Security’s responsibilities, has designated our fire trucks, ambulances, transit and school buses and terminal trucks (representing roughly 70% of the vehicles we produce) as essential to the nation’s health and safety, and are critical to the emergency service and transportation infrastructure.

WeOur Recreation vehicles dealer network was significantly impacted by the pandemic and many of them closed temporarily before reopening in the third quarter of fiscal year 2020 when consumer demand for recreation vehicles began to accelerate due to an increase in consumer preference to vacation in a safe and socially distant manner. As of January 31, 2021, backlog levels were significantly higher than the same period in the prior year.

When necessary, we have taken a number of precautionary steps to safeguard our employees and our business from the effects of the outbreak of COVID-19, including closing Recreation vehicle manufacturing locations for 3-6 weeks and shuttle bus manufacturing locations for 2 weeks (during the second quarter of fiscal year 2020), substantially limiting the presence of personnel in our offices and manufacturing locations, implementing travel restrictions and withdrawing from various industry events. We have requested that office employees work from home and implemented business continuity plans in an effort to minimize further business disruption and to protect our employees and operations. ~~In addition,~~At times, we have limited discretionary spending, furloughed salaried employees, deferred capital investments ~~suspended future quarterly dividends, replaced our Term Loan debt leverage ratio covenant with a fixed charge coverage ratio through fiscal 2020,~~ and temporarily lowered the salaries of our leadership team.

While the global market downturn, closures and limitations on movement are expected to be temporary, the duration of any demand ~~reductions,~~changes, production and supply chain disruptions, and related financial impacts, cannot be reliably estimated at this time.

	Three Months Ended July 31,					Nine Months Ended July 31,						Three Months Ended January 31,
($ in millions)	2020			2019		2020			2019			2021		2020
Net sales	$	582.2		$	617.0	$	1,661.3		$	1,750.8		$	554.0	$	532.1
Gross profit		66.5			71.3		166.3			190.1			61.7		47.4
Selling, general and administrative		53.5			48.9		157.6			145.3			47.1		46.3
Restructuring		2.5			1.3		6.0			4.2			1.0		0.6
Loss on sale of business		0.5			—		9.3			—
Gain on acquisition of business		—			—		(11.9	)		—
(Benefit) provision for income taxes		(0.5	)		1.9		(13.2	)		—
Net (loss) income		(3.6	)		5.6		(20.3	)		(3.3	)
Loss on business held for sale													3.8		—
Loss on acquisition of business													0.4		—
Benefit for income taxes													—		(2.6	)
Net income (loss)													—		(9.4	)

Net income (loss) per common share
Basic												$	—	$	(0.15	)
Diluted												$	—	$	(0.15	)
Dividends declared per common share												$	—	$	0.05

Adjusted EBITDA	$	21.4		$	33.5	$	39.6		$	82.7		$	23.2	$	11.3
Adjusted Net Income (Loss)	$	6.3		$	13.6	$	(2.5	)	$	26.6		$	8.8	$	(2.7	)

~~Net Sales~~. Consolidated net sales ~~were $582.2~~increased $21.9 million for the three months ended ~~July~~January 31, 2020, a decrease of $34.8 million, or 5.6%, from $617.0 million for the three months ended July 31, 2019. Net sales for the quarter included $74.5 million of revenue attributable to Spartan ER which was acquired on February 1, 2020. Net sales for the prior year quarter included $54.6 million of revenue attributable to the shuttle bus businesses which were sold on May 8, 2020. See to Note 8, Divestiture Activities, of the Notes to Condensed Unaudited Consolidated Financial Statements for further details. Excluding the impact of Spartan ER and the shuttle bus divestiture, net sales decreased by $55.0 million, or 9.8%2021 compared to the prior year ~~quarter. The organic~~quarter, primarily due to an increase in net sales in the Fire & Emergency and Recreation segments, partially offset by a decrease in net sales ~~volume was primarily related to reductions in school bus, municipal bus, street sweeper and terminal truck shipments~~ in the Commercial segment. The ~~decrease~~increase in ~~organic~~net sales ~~volume~~ in the ~~F&E~~Fire & Emergency segment was primarily due to ~~lower~~the acquisition of Spartan ER, the realization of price increases in legacy fire businesses and favorable unit mix within the Ambulance division. The

increase in the Recreation segment net sales was primarily due to favorable mix in Class A, increased unit shipments in Class B and Class C products, partially offset by a decrease in shipments in Class A and non-motorized units due to lingering COVID-19 related disruptions. The decrease in net sales in the Commercial segment was primarily the result of the sale of two shuttle bus businesses and a decrease in shipments of ~~ambulance units~~school buses due to end market softness, and lower municipal transit bus unit shipments due to COVID-19 production disruptions, partially offset by an increase in shipments of ~~fire apparatus. These segment decreases were partially offset by an increase in shipments in the Recreation segment driven by strong wholesale shipments~~terminal trucks and ~~retail demand for RV’s.~~street sweepers.

Consolidated net sales were $1,661.3 million for the nine months ended July 31, 2020, a decrease of $89.5 million, or 5.1%, from $1,750.8 million for the nine months ended July 31, 2019. Net sales for the nine months ended July 31, 2020, included $137.1 million of revenue attributable to Spartan ER acquired on February 1, 2020, and $95.8 million of revenue attributable to shuttle bus businesses which were sold on May 8, 2020. Net sales for the prior year period included $155.6 million of revenue attributable to the shuttle bus businesses. Excluding the impact of Spartan ER and the shuttle bus divestiture, net sales decreased by $166.8 million, or 10.5% compared to the prior year period. The decrease in organic net sales was primarily due to a decrease in volume of shipments during the second quarter of fiscal year 2020 due to the impacts from the temporary plant shutdowns related to COVID-19.

~~Gross Profit~~. Consolidated gross profit ~~was $66.5~~increased $14.3 million for the three months ended ~~July~~January 31, ~~2020,~~2021 compared to ~~$71.3 million for~~ the ~~three months ended July 31, 2019.~~prior year quarter. Consolidated gross profit as a percentage of consolidated net sales was ~~11.4%~~11.1% for the three months ended ~~July~~January 31, ~~2020, a decrease~~2021, an increase compared to ~~11.6%~~8.9% for the three months ended ~~July~~January 31, ~~2019.~~2020. The ~~decrease~~increase in gross profit was primarily ~~attributable~~due to increased net sales, lower ~~volume of shipments.~~

~~Consolidated gross profit was $166.3 million for the nine months ended July 31, 2020,~~sales discounts and operational performance improvements compared to ~~$190.1 million for~~ the ~~nine months ended July 31, 2019. Consolidated gross profit, as a percentage of consolidated~~ ~~net sales, was 10.0% for the nine months ended July 31, 2020, a decrease compared to 10.9% for the nine months ended July 31, 2019.~~ ~~The decrease in gross profit was primarily attributable to lower volume of shipments and COVID-19 related inefficiencies, partially offset by improved pricing.~~prior year quarter.

~~Selling, General and Administrative~~. Consolidated selling, general and administrative (“SG&A”) costs ~~were $53.5~~increased $0.8 million for the three months ended ~~July~~January 31, ~~2020, an increase of $4.6 million, or 9.4%, from consolidated SG&A~~2021 compared to the prior year quarter, primarily due to the Spartan ER acquisition, partially offset by reduced travel and marketing related costs.

Consolidated restructuring costs ~~of $48.9~~increased $0.4 million for the three months ended ~~July~~January 31, ~~2019. The~~ ~~increase in SG&A costs for the three months ended July 31, 2020 was primarily due~~2021 compared to the ~~acquisition of Spartan ER.~~

Consolidated SG&A costs were $157.6 million for the nine months ended July 31, 2020, an increase of $12.3 million, or 8.5%, from consolidated SG&A costs of $145.3 million for the nine months ended July 31, 2019.~~The~~ ~~increase in SG&A costs for the nine months ended July 31, 2020, was primarily due to the acquisition of Spartan ER and higher restructuring related costs associated with changes in leadership.~~

~~Restructuring~~. ~~Consolidated restructuring costs were $2.5 million for the three months ended July 31, 2020, compared to $1.3 million for the three months ended July 31, 2019.~~ prior year quarter. The increase in restructuring costs ~~for~~was primarily related to reductions in workforce in Corporate.

In the first quarter of fiscal year 2021, in connection with a strategic review of the product portfolio, we made the decision to divest our REV Brazil business. As a result, a loss of $3.8 million was recorded during the three months ended ~~July~~January 31, ~~2020, was primarily related to headcount reductions in Corporate & Other and the F&E segments.~~2021.

~~Consolidated restructuring costs were $6.0 million for the nine months ended July 31, 2020, compared to $4.2 million for the nine months ended July 31, 2019.~~ The increase in restructuring costs for the nine months ended July 31, 2020, was primarily related to headcount reductions in Corporate & Other and the F&E segments, as well as lease termination costs related to the closure of a Spartan ER facility.

~~Loss on Sale of Business~~. Effective May 8, 2020, we completed the sale of our shuttle bus businesses for $48.9 million in cash. As a result, we recorded a loss on sale of $0.5 million and $9.3 million during the three and nine months ended July 31, 2020, respectively. Refer to Note 8, Divestiture Activities, of the Notes to Condensed Unaudited Consolidated Financial Statements for further details.

~~Gain on Acquisition of Business~~. During the ~~second~~first quarter of fiscal year ~~2020, we recorded~~2021, the preliminary purchase ~~accounting for the acquisition of Spartan ER, which~~price allocation was updated to reflect immaterial measurement period adjustments made to inventories and warranty, and certain other assets acquired and liabilities assumed. These updates resulted in a decrease to the cumulative gain on acquisition of ~~$11.9~~$0.4 million. Refer to Note 4, Acquisition, of the Notes to Condensed Unaudited Consolidated Financial Statements for further details.

~~(Benefit) Provision for Income Taxes~~. Consolidated income tax ~~benefit of $0.5~~expense was $0.0 million for the three months ended ~~July~~January 31, ~~2020,~~2021, compared to $2.6 million of benefit, or ~~11.6%~~22.0% of pre-tax loss, ~~compared to $1.9 million of expense, or 25.7% of pre-tax income,~~ for the three months ended ~~July~~January 31, ~~2019.~~2020. Results for the three months ended ~~July~~January 31, 2020 were unfavorably impacted by ~~$0.8 million of net discrete tax expense primarily related to stock-based compensation tax deductions. Results for the three months ended July 31, 2019 were unfavorably impacted by $0.1~~$0.2 million of net discrete tax expenses primarily related to ~~a federal provision-to-return adjustment~~.

Consolidated income tax benefit of $13.2 million for the nine months ended July 31, 2020, or 39.4% of pre-tax loss, compared to less than $0.1 million of expense, or (0.2)% of pre-tax loss, for the nine months ended July 31, 2019. Results for the nine months ended July 31, 2020 were favorably impacted by $4.6 million of net discrete tax benefits primarily related to net operating loss carrybacks allowable under the CARES Act and the nontaxable gain on the acquisition of Spartan ER, which were offset by the net discrete tax expense related to stock-based compensation tax deductions. Results for the nine months ended July 31, 2019 were unfavorably impacted by $0.8 million of net discrete expenses primarily related to stock-based compensation tax deductions.

~~Net (Loss) Income~~. Consolidated net ~~loss was $3.6~~income increased $9.4 million for the three months ended ~~July~~January 31, ~~2020, a decrease~~2021 compared to the prior year quarter, primarily due to increased gross profit, lower amortization of ~~$9.2 million, or 164.3%, from consolidated net income of $5.6~~intangible assets and interest expense.

Consolidated Adjusted EBITDA increased $11.9 million for the three months ended ~~July~~January 31, ~~2019.~~ ~~The decrease was~~ ~~primarily~~2021 compared to the prior year quarter, due to an increase in Adjusted EBITDA in the ~~decrease in operating income, partially~~Fire & Emergency and Recreation segments, offset by lower ~~interest expense.~~

~~Consolidated net loss was $20.3 million for~~Adjusted EBITDA in the ~~nine months ended July 31, 2020, an increase of $17.0 million, or 515.2%, from a net loss of $3.3 million for the nine months ended July 31, 2019.~~ ~~The increase in loss was~~ ~~primarily due~~Commercial segment. Refer to the ~~decrease in operating income~~“Adjusted EBITDA and ~~the loss on the sale~~Adjusted Net Income” section below for a reconciliation of ~~the shuttle bus businesses, partially offset by the gain on acquisition of Spartan ER, lower interest expense~~Net Income (Loss) to Adjusted EBITDA tables and ~~income tax expense.~~related footnotes.

Refer to Adjusted EBITDA and Adjusted Net Income section of “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Quarterly Report on Form 10-Q for a reconciliation of Net Income (Loss) ~~Income~~ to Adjusted EBITDA tables and related footnotes.

Fire & Emergency segment net sales ~~were $306.7~~increased $74.1 million for the three months ended ~~July~~January 31, ~~2020, an increase of $59.0 million, or 23.8%, from $247.7 million for the three months ended July 31, 2019. The increase in net sales~~2021 compared to the prior year quarter, ~~was~~ primarily due to ~~net sales~~the acquisition of Spartan ER, which was acquired on February 1, 2020, the realization of price increases in legacy fire businesses and favorable unit mix within the Ambulance division. Both legacy fire and ambulance units experienced increased throughput ~~at one large fire plant. Excluding the impact~~as a result of ~~Spartan ER, net sales decreased by $15.5 million, or 6.3%~~productivity improvements which resulted in higher unit shipments compared to the prior year quarter. The decrease in sales was primarily related to lower shipments of ambulance units related to fewer orders for buildable stock units, supply chain disruptions and labor inefficiencies due to lingering impacts from COVID-19.

Fire & Emergency segment net sales were $802.4 million for the nine months ended July 31, 2020, an increase of $103.4 million, or 14.8%, from $699.0 million for the nine months ended July 31, 2019. The increase in net sales compared to the prior year period was primarily due to the net sales of Spartan ER, which was acquired on February 1, 2020. Excluding the impact of Spartan ER, Fire & Emergency net sales decreased by $33.7 million, or 4.8% compared to the prior year period. The decrease in sales was primarily related to the timing of shipments of fire apparatus and lower shipments of ambulance units related to fewer orders for buildable stock units, supply chain disruptions and labor inefficiencies due to lingering impacts from COVID-19.

Fire & Emergency segment Adjusted EBITDA ~~was $12.9~~increased $8.5 million for the three months ended ~~July~~January 31, ~~2020, an increase of $0.8 million, or 6.6%, from $12.1~~2021 compared to the prior year quarter, primarily due to the higher sales volume, pricing realization and operational performance improvements including direct labor efficiencies, lower overhead and SG&A costs partially offset by lingering disruptions related to COVID-19.

Commercial segment net sales decreased $75.1 million for the three months ended ~~July~~January 31, 2019. Spartan ER contributed $5.0 million of Adjusted EBITDA during the third quarter of fiscal year 2020. Excluding the impact of Spartan ER, Fire & Emergency Adjusted EBITDA decreased by $4.2 million, or 34.7%2021 compared to the prior year ~~quarter. Third~~ quarter, ~~profitability~~primarily due to the divestiture of two shuttle bus businesses in ~~the Fire & Emergency segment was negatively impacted primarily by labor inefficiencies within the Ambulance division caused by absenteeism and supply chain disruption related~~May 2020, lower shipments of school buses due to ~~lingering impacts of COVID-19~~end market softness and lower municipal transit bus unit shipments due to COVID-19 production disruptions, partially offset by ~~increased efficiency at a large fire plant~~an increase in shipments of terminal trucks and ~~favorable mix of fire apparatus shipments.~~street sweepers.

~~Fire & Emergency~~Commercial segment Adjusted EBITDA was $25.1 million for the nine months ended July 31, 2020, a decrease of $10.7 million, or 29.9%, from $35.8 million for the nine months ended July 31, 2019. Spartan ER contributed $8.4 million of Adjusted EBITDA during the nine months ended July 31, 2020. Excluding the impact of Spartan ER, Fire & Emergency Adjusted EBITDA decreased by $19.1 million, or 53.4% compared to the prior year period. The decrease in profitability compared to the prior year period was primarily inefficiencies at two fire plants, the timing of deliveries of fire apparatus, absenteeism, and supply chain disruption within the Ambulance division related to COVID-19, partially offset by increased efficiency at a large fire plant.

~~Commercial segment net sales were $92.4~~$3.7 million for the three months ended ~~July~~January 31, 2020, a decrease of $111.4 million, or 54.7%, from $203.8 million for the three months ended July 31, 2019. The decrease in net sales compared to the prior year quarter was primarily due to net sales of our shuttle bus businesses, which were sold on May 8, 2020. Excluding the impact of the shuttle bus divestiture, net sales decreased by $57.1 million, or 38.3% compared to the prior year quarter. The decrease in net sales was primarily due to fewer shipments of school buses, municipal transit buses, street sweepers and terminal trucks.

Commercial segment net sales were $393.8 million for the nine months ended July 31, 2020, a decrease of $120.7 million, or 23.5%, from $514.5 million for the nine months ended July 31, 2019. The decrease in net sales compared to the prior year period was primarily due to net sales of our shuttle bus businesses, which were sold on May 8, 2020. Excluding the impact of the shuttle bus divestiture, net sales decreased by $60.9 million, or 17.0% compared to the prior year period. The decrease in net sales was primarily due to lower shipments of school buses related to uncertainty surrounding school attendance policies, lower shipments of street sweepers related to reduced capital budgets at large customers and lower shipments of terminal trucks, partially offset by increased shipments of municipal transit buses.

Commercial segment Adjusted EBITDA was $10.3 million for the three months ended July 31, 2020, a decrease of $9.1 million, or 46.9%, from $19.4 million for the three months ended July 31, 2019. Adjusted EBITDA for the prior year quarter included $1.0 million of profitability attributable to the shuttle bus businesses which were sold on May 8, 2020. Excluding the impact of the shuttle bus divestiture, Adjusted EBITDA decreased by $8.2 million, or 44.6%2021 compared to the prior year quarter. The decrease in Adjusted EBITDA compared to the prior year quarter was primarily due to ~~reduced shipments of school buses, municipal transit buses, street sweepers~~lower sales volume and ~~terminal trucks~~production disruptions within the ~~quarter.~~

Commercial segment Adjusted EBITDA was $28.1 million for the nine months ended July 31, 2020, a decrease of $11.6 million, or 29.2%, from $39.7 million for the nine months ended July 31, 2019. Adjusted EBITDA for the prior year period included $1.0 million of profitability attributable to the shuttle bus businesses which were sold on May 8, 2020. Excluding the impact of the shuttle bus divestiture, Adjusted EBITDA decreased by $11.2 million, or 28.9% compared to the prior year period. The decrease in Adjusted EBITDA compared to the prior year period was primarily due to the reduced shipment volumes of school buses, terminal trucks and street sweepersBus division, partially offset by increased shipments ~~of municipal transit buses.~~and operational improvements in the terminal truck and street sweeper businesses as well as SG&A spend reductions across all businesses.

Recreation segment net sales ~~were $182.7~~increased $23.4 million for the three months ended ~~July~~January 31, ~~2020, an increase of $16.0 million, or 9.6%, from $166.7~~2021 compared to the prior year quarter, primarily due to favorable mix in Class A, increased unit shipments in Class B and Class C products, partially offset by a decrease in shipments in Class A and non-motorized units due to lingering disruptions related to COVID-19.

Recreation segment Adjusted EBITDA increased $8.1 million for the three months ended ~~July~~January 31, ~~2019. The increase in net sales~~2021 compared to the prior year quarter, ~~was~~ primarily ~~due to an increase~~from increased sales volume, pricing realization from lower discounting, and improved productivity improvements across all categories despite the COVID-19 disruptions experienced in ~~shipments of motorized~~ Class A ~~Class B~~ and ~~Super C RV’s driven by strong wholesale shipments and retail demand, partially offset by a decrease in~~ non-motorized units.

Recreation segment net sales were $463.6 million for the nine months ended July 31, 2020, a decrease of $79.0 million, or 14.6%, from $542.6 million for the nine months ended July 31, 2019. The decrease in net sales compared to the prior year period was primarily due to previously announced manufacturing shutdowns, decline of dealer foot traffic and retail sales during COVID-19 Stay-At-Home orders, primarily within the second quarter of fiscal year 2020.

Recreation segment Adjusted EBITDA was $12.1 million for the three months ended July 31, 2020, a decrease of $0.7 million, or 5.5%, from $12.8 million for the three months ended July 31, 2019. The reduction in profitability was primarily due to a COVID-19

related shutdown that extended into the quarter at a plant in California, lingering supply chain disruptions and lower sales into challenged end markets at a fiberglass plant which impacted profitability compared to the prior year.

Recreation segment Adjusted EBITDA was $17.9 million for the nine months ended July 31, 2020, a decrease of $21.5 million, or 54.6%, from $39.4 million for the nine months ended July 31, 2019. The decrease in Adjusted EBITDA compared to the prior year period was primarily due to lower shipments across most product categories due to temporary shutdowns of all Recreation businesses during the COVID-19 Stay-At-Home orders during the second quarter of fiscal year 2020 and lingering supply chain disruptions.

Backlog represents firm orders received from dealers or directly from end customers. ~~Backlog does not include purchase options or verbal orders.~~ The following table presents a summary of our backlog by segment:

Each of our three segments has a backlog of new vehicle orders that generally extends out from two to twelve months in duration.

Orders from our dealers and end customers are evidenced by a contract, firm purchase order or reserved production slot for delivery of one or many vehicles. These orders are reported in our backlog at the aggregate selling prices, net of discounts or allowances.

As of ~~July~~January 31, ~~2020,~~2021, our backlog was ~~$1,668.0~~$2,006.2 million compared to ~~$1,647.8~~$1,421.2 million as of ~~April 30,~~January 31, 2020. The increase in total backlog was due to increases in the Fire & Emergency and Recreation segments, partially offset by a decrease in the Commercial segment. The increase in Fire & Emergency backlog was primarily due to improved throughput at a large fire plant which has shortened the duration of backlog and increased deliveries of completed fire trucks upon physical inspections that had been delayed during COVID-19 travel restrictions. The decrease in Commercial backlog was primarily the result of ~~divested shuttle bus~~ backlog ~~as well as lower school bus, municipal transit~~acquired in the Spartan ER acquisition and ~~street sweeper orders.~~strong ambulance unit orders, partially offset by a decrease in backlog at legacy fire businesses due to soft order intake during COVID-19 related disruptions. The increase in Recreation segment backlog was primarily the result of strong order intake across all product categories.

As of July 31, 2020, our backlog was $1,668.0 million compared to $1,300.7 million as of July 31, 2019. The increase in Fire & Emergency backlog was primarily due to the acquisition of Spartan ER and strong Ambulance order intake over the trailing twelve months, partially offset by improved throughput at a large fire plant which has lowered backlog duration. The decrease in Commercial segment backlog was primarily the result of ~~divested shuttle bus backlog as well as lower~~a decrease in orders for school ~~bus, street sweeper~~buses and ~~terminal truck orders~~timing of a large municipal transit order partially offset by ~~an increase of municipal truck orders. The increase in Recreation backlog was the result~~ strong order intake ~~across all product categories.~~in the Specialty division.

Our primary requirements for liquidity and capital are working capital, the improvement and expansion of existing manufacturing facilities, debt service payments and general corporate needs. Historically, these cash requirements have been met through cash provided by operating activities, cash and cash equivalents and borrowings under our term loan and ABL credit facility.

We believe that our sources of liquidity and capital will be sufficient to finance our continued operations, growth strategy and additional expenses we expect to continue to incur as a public company. However, we cannot assure you that cash provided by operating activities and borrowings under the current revolving credit facility will be sufficient to meet our future needs. If we are unable to generate sufficient cash flows from operations in the future, and if availability under the current revolving credit facility is not sufficient due to the size of our borrowing base or other external factors, we may have to obtain additional financing. If additional capital is obtained by issuing equity, the interests of our existing stockholders will be diluted. If we incur additional indebtedness, that indebtedness may contain financial and other covenants that may significantly restrict our operations or may involve higher overall interest rates. We are in the process of refinancing our term loan and ABL credit facility. We expect the refinancing to be completed by the end of the second quarter of fiscal year 2021. However, we cannot assure you that we will be able to obtain refinancing or additional financing on favorable terms or at all.

The following table shows summary cash flows for the ~~nine~~three months ended ~~July~~January 31, ~~2020~~2021 and ~~July~~January 31, ~~2019:~~2020:

Net cash provided by operating activities for the ~~nine~~three months ended ~~July~~January 31, ~~2020~~2021 was ~~$25.0~~$1.9 million, compared ~~$22.0~~to a use of cash of $13.3 million for the ~~nine~~three months ended ~~July~~January 31, ~~2019.~~2020. The generation of positive cash from operating activities for the ~~nine~~three months ended ~~July~~January 31, ~~2020,~~2021, was related to ~~improved~~higher net ~~working capital efficiency, specifically~~income and a receipt of a tax refund related to ~~inventory.~~the CARES Act, partially offset by decreases from the timing of payables.

Net cash provided by investing activities for the three months ended January 31, 2021 was $7.1 million and was primarily related to the proceeds from the sale of land ($8.7 million) and a decrease in capital expenditures. Net cash used in investing activities for the ~~nine~~three months ended ~~July~~January 31, 2020 was $10.2 million, compared to net cash provided by investing activities of $5.5 million for the nine months ended July 31, 2019. The increase in net cash used in investing activities for the nine months ended July 31, 2020, compared to the prior year period, was due to the acquisition of Spartan ER on February 1, 2020, net of proceeds from the sale of our shuttle bus businesses on May 8, 2020 and a decrease in proceeds from sales of other assets, partially offset by a reduction in capital expenditures.$1.3 million.

Net cash used in financing activities for the ~~nine~~three months ended ~~July~~January 31, ~~2020~~2021 was ~~$0.8~~$11.3 million, which primarily consisted of ~~net borrowings to fund the acquisition of Spartan ER and to pay quarterly dividends, offset by~~ repayment of long-term debt. Net cash ~~used in~~provided by financing activities for the ~~nine~~three months ended ~~July~~January 31, ~~2019~~2020 was ~~$29.1 million, which primarily consisted of net borrowings to fund working capital requirements and to repay long-term debt, to repurchase the Company’s common stock and to pay quarterly dividends.~~$78.6 million.

Subject to legally available funds and the discretion of our board of directors, we may or may not pay a quarterly cash dividend in the future on our common stock. ~~During the nine months ended July 31, 2020, the Company paid cash dividends of $9.5 million.~~ Our ability to pay dividends is limited under our Term Loan agreement, as amended on April 29, 2020. In order to pay dividends, ~~the Company~~we must have a leverage ratio, including the impact of the dividend, not to exceed 3.5 to 1.0. ~~As a result, the Company~~We announced the suspension of ~~its~~our quarterly dividend beginning the second quarter of fiscal year 2020 and will reassess at a future date.

On March 20, 2018, the Company’s Board of Directors authorized up to $50.0 million of repurchases of the Company’s issued and outstanding common stock with an expiration date of March 19, 2020. On September 5, 2018, the Company’s Board of Directors authorized an additional $50.0 million of repurchases of the Company’s issued and outstanding common stock with an expiration date of September 4, 2020. The Company’s share repurchase program was executed from time to time through open market or through private transactions. Shares purchased under the share repurchase program were retired and returned to authorized and unissued status. During fiscal year 2018, the Company repurchased 3,233,352 shares under this repurchase program at a total cost of $53.3 million at an average price per share of $16.47. During fiscal year 2019, the Company repurchased 717,597 shares under this repurchase program at a total cost of $8.3 million at an average price per share of $11.62. There were no repurchases under this program during In the three ~~and nine~~ months ended July 31, 2020. The Company is no longer permitted to repurchase stock under the provisions of our Term Loan, as amended on April 29, 2020, from the date of the amendment through the maturity of the Term Loan Agreement.

On April 25, 2017, we entered into a $75.0 million term loan (“Term Loan” or “Term Loan Agreement”), as Borrower, certain subsidiaries of the Company, as Guarantor Subsidiaries. Principal may be prepaid at any time during the term of the Term Loan without penalty. The Company incurred $2.0 million in debt issuance costs related to the Term Loan. The Term Loan Agreement expires on April 25, 2022.

On July 18, 2018, the Company exercised its $50.0 million incremental commitment option under the Term Loan Agreement, which increased total borrowing under the facility from $75.0 million to $125.0 million. The Company incurred an additional $0.6 million of debt issuance costs related to the incremental commitment option under the Term Loan. Proceeds from the increase in the Term Loan were used to repay a portion of the borrowings under the April 2017 ABL Facility.

On March 29, 2019, the Company exercised a $50.0 million incremental commitment option under the Term Loan Agreement, which increased total borrowing under the facility from $125.0 million to $175.0 million. The Company incurred an additional $0.8 million of debt issuance costs related to the incremental commitment option under the Term Loan. Proceeds from the incremental commitment were used to repay a portion of the outstanding borrowings under the April 2017 ABL Facility.

On October 18, 2019, the Company amended the term loan agreement to raise the maximum net leverage ratio to 4.00 to 1.00 from 3.50 to 1.00. The ratio will decline by 25 basis points in the third quarter of each fiscal year after the amendment date, reaching a final maximum leverage ratio of 3.50 to 1.00 on July 31, 2021. Additionally, the Company received a waiver related to the excess cash flow calculation payment for fiscal year 2019. The Company incurred $0.2 million of debt issuance costs related to the amendment raising the maximum leverage ratio and the waiver for the excess cash flow calculation payment under the Term Loan Agreement.

On January 31, 2020, ~~the Company amended the term loan agreement, in contemplation~~we paid cash dividends of its pending acquisition of Spartan ER, to raise the maximum net leverage ratio to 5.00 to 1.00 from 4.00 to 1.00. The ratio will decline by 25 basis points in the fourth quarter of fiscal year 2020, and each fiscal quarter ending thereafter, reaching a final maximum leverage ratio of 3.75 to 1.00 on October 31, 2021. The Company incurred $0.4 million of debt issuance costs related to this amendment.$3.1 million.

On April 29, 2020, the Company ~~amended the~~entered into a Fifth Amended and Restated $175.0 million term loan agreement ~~to eliminate the maximum leverage ratio covenant~~(“Term Loan” and ~~replace it~~“Term Loan Agreement”), as Borrower with ~~a fixed charge coverage ratio test with a minimum ratio of 1.25 to 1.00. The fixed charge coverage ratio covenant will remain in effect through~~certain subsidiaries of the ~~fourth quarter~~Company, acting as guarantors of fiscal year 2020. The maximum leverage ratio covenant will be reinstated at 5.25 to 1.00 starting in the first quarter of fiscal year 2021, and decline by 25 basis points each subsequent quarter, to a final level of 4.25 to 1.00 in first quarter of fiscal 2022. The applicable interest rate margins increased by 75 basis points corresponding with the amendment. The Company incurred $0.2 million of debt issuance costs related to the amendment.debt.

~~The Company~~We may voluntarily prepay principal, in whole or in part, at any time, without penalty. ~~Commencing with fiscal year 2018 and payable in fiscal year 2019, the Company is~~We are obligated to prepay certain minimum amounts based on ~~the Company’s~~our excess cash flow, as defined in the Term Loan Agreement. We were required to make a $1.6 million excess cash flow payment in fiscal year 2020. The Term Loan is also subject to mandatory prepayment if ~~the Company~~we or any of ~~its~~our restricted subsidiaries receives proceeds from certain events, including certain asset sales and casualty events, and the issuance of certain debt and equity interests. The Term Loan matures on April 25, 2022.

The Term Loan Agreement contains certain financial covenants. ~~The Company was~~We were in compliance with all financial covenants under the Term Loan as of ~~July~~January 31, ~~2020.~~2021.

On ~~April 25, 2017, we~~January 31, 2020, the Company entered into a ~~new $350.0 million~~Second Amended and Restated revolving credit and guaranty agreement (the ~~“April 2017 ABL~~“ABL Facility” or “ABL Agreement”) with a syndicate of lenders. The ~~April 2017~~ ABL Facility ~~provides for revolving loans~~consists of: (i) Revolving Loans, (ii) Swing Line Loans, and ~~letters~~(iii) Letters of ~~credit in an aggregate amount of~~Credit, aggregating up to ~~$350.0~~a combined maximum of $500.0 million. The total ~~April 2017~~amount borrowed under the ABL Facility is subject to a $30.0 million sublimit for ~~swing line~~Swing Line loans and a $35.0 million sublimit for ~~letters~~Letters of ~~credit,~~Credit, along with certain borrowing base and other customary restrictions as defined in the ABL Agreement. The ~~April 2017~~ ABL Facility ~~expires~~matures on April 25, 2022.

On December 22, 2017, the Company exercised its $100.0 million incremental commitment option under the April 2017 ABL Facility to fund the Lance Camper acquisition, which increased the facility to $450.0 million.

On January 31, 2020, the Company increased total borrowing capacity under the facility, in anticipation of its acquisition of Spartan ER, from $450.0 million to $500.0 million. The Company incurred an additional $0.3 million of debt issuance costs related to the incremental borrowing capacity option under the April 2017 ABL Facility.

Principal may be repaid at any time during the term of the ABL Facility without penalty.

The ~~April 2017~~ ABL Facility contains certain financial covenants. We were in compliance with all financial covenants under the ABL Facility as of ~~July~~January 31, ~~2020.~~2021. As of ~~July~~January 31, ~~2020,~~2021, our availability under the ~~April 2017~~ ABL Facility was ~~$220.6~~$230.0 million.

Refer to Note 9, Long-Term Debt, of the Notes to Condensed Unaudited Consolidated Financial Statements for further details.

In considering the financial performance of the business, management analyzes the primary financial performance measures of Adjusted EBITDA and Adjusted Net Income. Adjusted EBITDA is defined as net income for the relevant period before depreciation and amortization, interest expense and provision for income taxes, as adjusted for certain items described below that we believe are not indicative of our ongoing operating performance. Adjusted Net Income is defined as net income, as adjusted for certain items described below that we believe are not indicative of our ongoing operating performance.

We believe Adjusted EBITDA and Adjusted Net Income are useful to investors because these performance measures are used by our management and ~~the Company’s~~our Board of Directors for measuring and reporting ~~the Company’s~~our financial performance and as a measurement in incentive compensation for management. These measures exclude the impact of certain items which we believe have less bearing on our core operating performance because they are items that are not needed or available to ~~the Company’s~~our managers in the daily activities of their businesses. We believe that the core operations of our business are those which can be affected by our management in a particular period through their resource allocation decisions that affect the underlying performance of our operations conducted during that period. We also believe that decisions utilizing Adjusted EBITDA and Adjusted Net Income allow for a more meaningful comparison of operating fundamentals between companies within our markets by eliminating the impact of capital structure and taxation differences between the companies.

To determine Adjusted EBITDA, we adjust Net Income for the following items: non-cash depreciation and amortization, interest expense, income taxes and other items as described below. Stock-based compensation expense and sponsor expense reimbursement is excluded from both Adjusted Net Income and Adjusted EBITDA because it is an expense, which cannot be impacted by our business managers. Stock-based compensation expense also reflects a cost which may obscure trends in our underlying vehicle businesses for a given period, due to the timing and nature of the equity awards. We also adjust for exceptional items, which are determined to be those that in management’s judgment are not indicative of our ongoing operating performance and need to be disclosed by virtue of their size, nature or incidence, and include non-cash items and items settled in cash. In determining whether an event or transaction is exceptional, management considers quantitative as well as qualitative factors such as the frequency or predictability of occurrence.

Adjusted EBITDA and Adjusted Net Income have limitations as analytical tools. These are not presentations made in accordance with U.S. GAAP, are not measures of financial condition and should not be considered as an alternative to net income or net loss for the period determined in accordance with U.S. GAAP. The most directly comparable U.S. GAAP measure to Adjusted EBITDA and Adjusted Net Income is Net Income for the relevant period. Adjusted EBITDA and Adjusted Net Income are not necessarily comparable to similarly titled measures used by other companies. As a result, you should not consider this performance measure in isolation from, or as a substitute analysis for, our results of operations as determined in accordance with U.S. GAAP. Moreover, such measures do not reflect:

~~The following table reconciles Net (Loss) Income to Adjusted EBITDA for the periods presented:~~

Three Months Ended
July 31,

Nine Months Ended
July 31,

($ in millions)

2020

2019

2020

2019

Net (loss) income

$
(3.6
)

$
5.6

$
(20.3
)

$
(3.3
)
Depreciation and amortization

9.2

10.9

30.9

34.8

Interest expense, net

5.7

8.4

20.3

24.2

(Benefit) provision for income taxes

(0.5
)

1.9

(13.2
)

—

EBITDA

10.8

26.8

17.7

55.7

Transaction expenses(a)

0.6

0.5

2.6

0.7

Sponsor expense reimbursement(b)

0.1

—

0.2

0.6

Restructuring costs(c)

2.5

1.3

6.0

4.2

Restructuring related costs(d)

0.7

—

3.9

—

Stock-based compensation expense(e)

1.8

2.5

7.2

7.3

Legal matters(f)

0.1

0.8

1.6

5.3

Loss on sale of business(g)

0.5

—

9.3

—

Gain on acquisition of business(h)

—

—

(11.9
)

—

Impairment charges(i)

3.7

—

3.7

2.8

Losses (earnings) attributable to assets held for sale(j)

0.6

1.0

(0.8
)

3.3

Deferred purchase price payment(k)

—

0.6

0.1

2.8

Adjusted EBITDA

$
21.4

$
33.5

$
39.6

$
82.7

The following table reconciles Net Income (Loss) to Adjusted EBITDA for the periods presented:

	Three Months Ended January 31,
($ in millions)	2021		2020
Net income (loss)	$	—	$	(9.4	)
Depreciation and amortization		8.6		10.8
Interest expense, net		5.5		7.3
Benefit for income taxes		—		(2.6	)
EBITDA		14.1		6.1
Transaction expenses(a)		2.3		1.1
Sponsor expense reimbursement(b)		0.2		0.1
Restructuring costs(c)		1.0		0.6
Stock-based compensation expense(d)		1.9		2.6
Legal matters(e)		0.4		0.1
Net loss on sale of assets and business held for sale(f)		2.7		—
Loss on acquisition of business(g)		0.4		—
Losses attributable to assets held for sale(h)		0.2		0.6
Deferred purchase price payment(i)		—		0.1
Adjusted EBITDA	$	23.2	$	11.3

The following table reconciles Net Income (Loss) to Adjusted Net Income (Loss) for the periods presented:

Three Months Ended
July 31,

Nine Months Ended
July 31,

($ in millions)

2020

2019

2020

2019

Net (loss) income

$
(3.6
)

$
5.6

$
(20.3
)

$
(3.3
)
Amortization of intangible assets

3.0

4.1

10.4

13.3

Transaction expenses(a)

0.6

0.5

2.6

0.7

Sponsor expense reimbursement(b)

0.1

—

0.2

0.6

Restructuring costs(c)

2.5

1.3

6.0

4.2

Restructuring related costs(d)

0.7

—

3.9

—

Stock-based compensation expense(e)

1.8

2.5

7.2

7.3

Legal matters(f)

0.1

0.8

1.6

5.3

Loss on sale of business(g)

0.5

—

9.3

—

Gain on acquisition of business(h)

—

—

(11.9
)

—

Impairment charges(i)

3.7

—

3.7

2.8

Losses (earnings) attributable to assets held for sale(j)

0.6

1.0

(0.8
)

3.3

Deferred purchase price payment(k)

—

0.6

0.1

2.8

Impact of tax rate change(l)

—

—

(3.5
)

—

Income tax effect of adjustments(m)

(3.7
)

(2.8
)

(11.0
)

(10.4
)
Adjusted Net Income (Loss)

$
6.3

$
13.6

$
(2.5
)

$
26.6

Restructuring expenses in the prior year period consisted of personnel costs, including severance, vacation and other employee benefit payments as well as ~~facility closure and lease termination costs.~~costs related to disposal activities.

We have not created, and are not party to, any special-purpose or off-balance sheet entities for the purpose of raising capital, incurring debt or operating our business. WeWith the exception of operating lease obligations, we do not have any off-balance sheet arrangements or relationships with entities that are not consolidated into or disclosed in our consolidated financial statements that have, or are reasonably likely to have, a material current or future effect on our financial condition, revenues, expenses, results of operations, liquidity, capital expenditures and capital resources. In addition, we do not engage in trading activities involving non-exchange traded contracts. See Note 13, Commitments and Contingencies, of the Notes to Condensed Unaudited Consolidated Financial Statements for additional discussion.

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates, assumptions and judgments that affect amounts reported in the consolidated financial statements and accompanying notes. ~~The Company's~~Our disclosures of critical accounting policies are reported in ~~its 2019~~our Annual Report on Form 10-K for the fiscal year ended October 31, ~~2019.~~2020. In the first quarter of fiscal year ~~2020, the Company~~2021, we adopted ASU ~~2016-02~~2016-13 relating to ~~leases,~~measurement of credit losses on financial instruments, as discussed in Note 1 ~~and Note 3~~ of the Notes to Condensed Unaudited Consolidated Financial Statements.

See Note 1 of the Notes to Condensed Unaudited Consolidated Financial Statements for a discussion of the impact on our financial statements of new accounting standards.

There have been no material changes in our exposure to interest rate risk, foreign exchange risk and commodity price risk from the information provided in ~~the Company’s~~our Annual Report on Form 10-K filed on ~~December 18, 2019.~~January 7, 2021.

~~The Company maintains~~We maintain “disclosure controls and procedures”, as such term is defined under Exchange Act Rule 13a-15(e), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. In designing and evaluating the disclosure controls and procedures, our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives and our management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. ~~The Company has~~We have carried out an evaluation, as of the end of the period covered by this report, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of ~~the Company’s~~our disclosure controls and procedures. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of ~~July~~January 31, ~~2020.~~2021.

During the quarter ended ~~July~~January 31, ~~2020,~~2021, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

For a description of our legal proceedings, see Note ~~14,~~13, Commitments and Contingencies, of the Notes to Condensed Unaudited Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q.

~~Our business faces many risks and uncertainties that we cannot control. In addition~~There have been no material changes to the ~~other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risks set forth below and~~risk factors associated with our business previously disclosed in “Item 1A. Risk Factors,” in our ~~2019~~ Annual Report on Form 10-K for the fiscal year ended October 31, 2019 and in our Quarterly Report on Form 10-Q for the quarterly period ended April 30, 2020, together with the other information contained in our other filings with the SEC, in connection with evaluating the Company and our business. Such risks may be amplified by the COVID-19 pandemic and its potential impact on our business and the global economy. Other risks that we do not presently know about or that we presently believe are not material could also adversely affect us.

~~The COVID-19 pandemic has impacted, and could in the future materially and adversely affect, our business.~~

The novel strain of the coronavirus identified in China in late 2019 (COVID-19) and now affecting the global community has impacted and is expected to continue to impact our operations, and the full nature and extent of the impact is highly uncertain and may be beyond our control. Among other things, uncertainties relating to COVID-19 include the duration of the outbreak, the severity of the virus and the actions, or perception of actions, that may be taken to contain or treat its impact, by governments and others, including declarations of states of emergency, business closures, manufacturing restrictions and a prolonged period of travel, commercial and/or other similar restrictions and limitations.

Furthermore, as a result of COVID-19 and the measures implemented that are designed to contain its spread, our customers have been and could continue to be negatively impacted, resulting in a disruption in demand which could negatively impact our sales and have a material adverse effect on our business, results of operations and financial condition. Similarly, as a result of COVID-19 and measures implemented that are designed to contain its spread, our suppliers may not have the materials, capacity, or capability to enable the manufacture of our products according to our schedule and specifications. For example, in early 2020, we experienced delays in the supply of certain components for our vehicles. Because of impacts to suppliers’ operations, we may need to seek2020.

alternate suppliers, which may be more expensive, may not be available or may result in delays in shipments to us and subsequently to our customers, each of which would affect our results of operations.

The COVID-19 pandemic has also disrupted our internal operations, including by heightening the risk that a significant portion of our workforce will suffer illness or otherwise not be permitted or be unable to work and exposing us to cyber and other risks associated with a large number of our employees working remotely. ~~Beginning the week of March 23, 2020, we suspended~~ normal production activities within the Recreation segment at all four of our RV production facilities in Indiana and California and furloughed most salaried employees within the Recreation segment. While operations at these facilities generally restarted in May 2020, we cannot predict whether our facilities will experience additional disruptions or more significant or frequent disruptions in the future.

In addition, the COVID-19 pandemic has led to disruption and volatility in the global capital markets, which could impact our capital resources and liquidity in the future. To improve our liquidity position, we obtained financial covenant relief under an amendment to our Term Loan Agreement on April 29, 2020. However, there can be no assurances that we will be able to obtain further amendments that we may require to our ABL Facility or Term Loan Agreement, or that we will be able to obtain any financing required to support our liquidity position on commercially reasonable terms or at all.

Further, if our operations, employees, suppliers or customers are adversely impacted by COVID-19, including individual infections leading to injury or death, or the inability for us to meet our contractual obligations, then we may be exposed to reputational, competitive, operational, financial and business harm as well as litigation and regulatory action. The costs and operational consequences of responding to the above items could be significant and could adversely impact our results.

The impact of the COVID-19 pandemic continues to evolve and its duration and ultimate disruption to our customers and to our supply chain, and related financial impact to us, cannot be estimated at this time. Should such disruption continue for an extended period of time, the impact could have a more severe adverse effect on our business, results of operations and financial condition. Additionally, weaker economic conditions generally could result in impairment in value of our tangible or intangible assets, or our ability to raise additional capital, if needed.

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. Although we continue to examine the impacts the CARES Act may have on our business, results of operations, financial condition and liquidity, and our financial statements include the benefits we have been able to assess at this time, future benefits rely to some extent on future performance of the company, and it is currently unclear how we will fully benefit from the CARES Act.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Delaware	26-3013415
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

245 South Executive Drive, Suite 100 Brookfield, WI	53005
(Address of principal executive offices)	(Zip Code)

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock ($0.001 Par Value)	REVG	New York Stock Exchange

		Page
Cautionary Statement About Forward-Looking Statements		3
Website and Social Media Disclosure		3
PART I.	FINANCIAL INFORMATION	4
Item 1.	Financial Statements	4
	Condensed Unaudited Consolidated Balance Sheets	4
	Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) ~~Income~~	5
	Condensed Unaudited Consolidated Statements of Cash Flows	6
	Condensed Unaudited Consolidated Statements of Shareholders’ Equity	7
	Notes to Condensed Unaudited Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2220
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3430
Item 4.	Controls and Procedures	3430
PART II.	OTHER INFORMATION	3431
Item 1.	Legal Proceedings	3431
Item 1A.	Risk Factors	3431
Item 6.	Exhibits	3632
Signatures		3733

	July 31, 2020			October 31, 2019			January 31, 2021			October 31, 2020
Chassis	$	44.3		$	44.9		$	67.0		$	61.1
Raw materials		211.8			198.1			191.9			193.2
Work in process		256.6			200.8			228.2			230.3
Finished products		73.2			79.6			63.6			72.4
		585.9			523.4			550.7			557.0
Less: reserves		(13.6	)		(10.0	)		(17.5	)		(19.8	)
Total inventories, net	$	572.3		$	513.4		$	533.2		$	537.2

	July 31, 2020			October 31, 2019			January 31, 2021			October 31, 2020
Land & land improvements	$	27.0		$	24.2		$	19.5		$	27.0
Buildings & improvements		104.5			107.6			103.9			103.9
Machinery & equipment		84.6			93.1			95.1			95.2
Rental & used vehicles		21.4			24.4			4.1			4.9
Computer hardware & software		55.6			58.1			51.0			47.5
Office furniture & fixtures		6.2			5.8			4.9			5.1
Construction in process		8.0			11.4			5.3			8.1
		307.3			324.6			283.8			291.7
Less: accumulated depreciation		(125.0	)		(122.9	)		(127.9	)		(123.3	)
Total property, plant and equipment, net	$	182.3		$	201.7		$	155.9		$	168.4

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Small reporting company	☐
Emerging growth company	☐

Supplemental disclosures of cash flow information:
Cash paid (received) for:
Interest	$	20.9	$	22.6		$	4.7		$	6.6
Income taxes, net of refunds	$	0.4	$	(9.0	)	$	(11.5	)	$	—

Remaining three months of fiscal year 2020	$	2.3
2021		8.7
Remaining nine months of fiscal year 2021				$	6.9
2022		6.9			7.7
2023		4.2			4.8
2024		2.4			2.8
2025					1.0
Thereafter		3.9			2.4
Total undiscounted lease payments		28.4			25.6
Less: imputed interest		(2.4	)		(2.5	)
Total lease liabilities	$	26.0			23.1
Less: lease liabilities held for sale					(2.0	)
Total lease liabilities excluding held for sale				$	21.1

Assets:
Accounts receivable, net	$	30.9		$	22.9
Inventories, net		77.7			83.2
Other current assets		2.4			0.7
Property, plant and equipment		15.2			13.4
Right of use assets		6.0			6.0
Total assets acquired		132.2			126.2
Liabilities:
Accounts payable		5.0			5.3
Customer advances		32.8			35.3
Accrued warranty		2.7			2.1
Other current liabilities		5.1			7.8
Short-term lease obligations		0.8			0.8
Deferred income taxes		3.9			2.7
Long-term lease obligations		5.4			5.4
Other long-term liabilities		9.8			11.3
Total liabilities assumed		65.5			70.7
Net assets acquired		66.7			55.5
Consideration paid		54.8			47.3
Gain on acquisition of business	$	(11.9	)	$	(8.2	)

	Three Months Ended July 31, 2019
	Fire & Emergency		Commercial			Recreation		Corporate, Other & Elims			Consolidated
Net sales	$	247.7	$	203.8		$	166.7	$	(1.2	)	$	617.0
Depreciation and amortization	$	3.6	$	2.0		$	3.6	$	1.7		$	10.9
Capital expenditures	$	1.8	$	1.4	��	$	0.6	$	0.9		$	4.7
Total assets	$	622.8	$	328.5		$	336.6	$	118.2		$	1,406.1
Adjusted EBITDA	$	12.1	$	19.4		$	12.8	$	(10.8	)

	Nine Months Ended July 31, 2020
	Fire & Emergency		Commercial		Recreation		Corporate, Other & Elims			Consolidated
Net sales	$	802.4	$	393.8	$	463.6	$	1.5		$	1,661.3
Depreciation and amortization	$	10.2	$	4.7	$	10.2	$	5.8		$	30.9
Capital expenditures	$	5.0	$	1.7	$	1.6	$	1.4		$	9.7
Total assets	$	766.9	$	205.9	$	309.0	$	127.6		$	1,409.4
Adjusted EBITDA	$	25.1	$	28.1	$	17.9	$	(31.5	)

Gross Profit	Three Months Ended
(in millions)	January 31, 2021			Change			January 31, 2020
Gross profit	$	61.7			30.2	%	$	47.4
% of net sales		11.1	%					8.9	%


($ in millions)	July 31, 2020		April 30, 2020		January 31, 2020		July 31, 2019		January 31, 2021		January 31, 2020
Fire & Emergency	$	1,039.7	$	1,111.7	$	807.3	$	775.7	$	1,017.9	$	807.3
Commercial		300.5		413.2		455.6		395.3		234.0		455.6
Recreation		327.8		122.9		158.3		129.7		754.3		158.3
Total Backlog	$	1,668.0	$	1,647.8	$	1,421.2	$	1,300.7	$	2,006.2	$	1,421.2

Exhibit Number		Description

10.1*		~~Change in Control Severance Agreement Form~~.
31.1*		Certification by the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*		Certification by the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*		Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*		Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*		Inline XBRL Instance Document
101.SCH*		Inline XBRL Taxonomy Extension Schema Document
101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (formatted in iXBRL and contained within Exhibit 101)

	REV GROUP, INC.

Date: ~~September 9, 2020~~March 10, 2021	By:	/s/ Rodney N. Rushing
		Rodney N. Rushing
		Chief Executive Officer

Date: ~~September 9, 2020~~March 10, 2021	By:	/s/ Mark A. Skonieczny
		Mark A. Skonieczny
		Chief Financial Officer