Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jan. 31, 2022 | Mar. 07, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --10-31 | |
Entity File Number | 001-37999 | |
Trading Symbol | REVG | |
Title of 12(b) Security | Common Stock ($0.001 Par Value) | |
Security Exchange Name | NYSE | |
Entity Registrant Name | REV Group, Inc. | |
Entity Central Index Key | 0001687221 | |
Entity Incorporation, State or Country Name | DE | |
Entity Tax Identification Number | 26-3013415 | |
Entity Address, Address Line One | 245 South Executive Drive, Suite 100 | |
Entity Address, City or Town | Brookfield | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53005 | |
City Area Code | 414 | |
Local Phone Number | 290-0190 | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 62,941,894 | |
Document Transition Report | false | |
Document Quarterly Report | true |
Condensed Unaudited Consolidate
Condensed Unaudited Consolidated Balance Sheets - USD ($) $ in Millions | Jan. 31, 2022 | Oct. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 13.9 | $ 13.3 |
Accounts receivable, net | 249.8 | 213.3 |
Inventories, net | 527.6 | 481.7 |
Other current assets | 25.6 | 52.7 |
Total current assets | 816.9 | 761 |
Property, plant and equipment, net | 154.9 | 157.6 |
Goodwill | 157.3 | 157.3 |
Intangible assets, net | 123.9 | 126.3 |
Right of use assets | 22.4 | 19.1 |
Other long-term assets | 16.9 | 17 |
Total assets | 1,292.3 | 1,238.3 |
Current liabilities: | ||
Accounts payable | 137.1 | 116.2 |
Customer advances | 252.7 | 210.6 |
Accrued warranty | 21.7 | 22.3 |
Short-term lease obligations | 7.9 | 7.1 |
Other current liabilities | 66 | 80.8 |
Total current liabilities | 485.4 | 437 |
Long-term debt | 256 | 215 |
Deferred income taxes | 23.1 | 21.4 |
Long-term lease obligations | 15.5 | 12.8 |
Other long-term liabilities | 24.2 | 33.3 |
Total liabilities | 804.2 | 719.5 |
Commitments and contingencies | ||
Shareholders' Equity: | ||
Preferred stock ($.001 par value, 95,000,000 shares authorized; none issued or outstanding) | ||
Common stock ($.001 par value, 605,000,000 shares authorized; 63,124,016 and 64,584,291 shares issued and outstanding, respectively) | 0.1 | 0.1 |
Additional paid-in capital | 475.3 | 502.1 |
Retained earnings | 12.7 | 16.7 |
Accumulated other comprehensive loss | (0.1) | |
Total shareholders' equity | 488.1 | 518.8 |
Total liabilities and shareholders' equity | $ 1,292.3 | $ 1,238.3 |
Condensed Unaudited Consolida_2
Condensed Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 31, 2022 | Oct. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, authorized shares | 95,000,000 | 95,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 605,000,000 | 605,000,000 |
Common stock, shares issued | 63,124,016 | 64,584,291 |
Common stock, shares outstanding | 63,124,016 | 64,584,291 |
Condensed Unaudited Consolida_3
Condensed Unaudited Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 537 | $ 554 |
Cost of sales | 481.2 | 492.3 |
Gross profit | 55.8 | 61.7 |
Operating expenses: | ||
Selling, general and administrative | 47.6 | 47.1 |
Research and development costs | 1.2 | 1.3 |
Amortization of intangible assets | 2.4 | 2.6 |
Restructuring | 3.7 | 1 |
Total operating expenses | 54.9 | 52 |
Operating income | 0.9 | 9.7 |
Interest expense, net | 3.4 | 5.5 |
Loss on business held for sale | 3.8 | |
Loss on acquisition of business | 0.4 | |
Loss before benefit for income taxes | (2.5) | |
Benefit for income taxes | (1.8) | $ 0 |
Net loss | (0.7) | |
Other comprehensive income, net of tax | 0.1 | |
Comprehensive loss | $ (0.6) | |
Net loss per common share: | ||
Basic | $ (0.01) | |
Diluted | (0.01) | |
Dividends declared per common share | $ 0.05 |
Condensed Unaudited Consolida_4
Condensed Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (0.7) | |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 9.6 | $ 8.6 |
Amortization of debt issuance costs | 0.4 | 0.6 |
Stock-based compensation expense | 2.3 | 1.9 |
Deferred income taxes | 1.7 | 1.3 |
Gain on sale of assets | (0.1) | (1.5) |
Loss on business held for sale | 3.8 | |
Loss on acquisition of business | 0.4 | |
Changes in operating assets and liabilities, net | (16.9) | (13.2) |
Net cash (used in) provided by operating activities | (3.7) | 1.9 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (4.5) | (2.9) |
Proceeds from sale of assets | 0.1 | 10 |
Net cash (used in) provided by investing activities | (4.4) | 7.1 |
Cash flows from financing activities: | ||
Net proceeds (repayments) from borrowings on revolving credit facility | 41 | (10) |
Repayment of long-term debt | (0.4) | |
Payment of dividends | (3.3) | |
Repurchase and retirement of common stock | (24.4) | |
Other financing activities | (4.6) | (0.9) |
Net cash provided by (used in) financing activities | 8.7 | (11.3) |
Net increase (decrease) in cash and cash equivalents | 0.6 | (2.3) |
Cash and cash equivalents, beginning of period | 13.3 | 11.4 |
Cash and cash equivalents, end of period | 13.9 | 9.1 |
Cash paid (received) for: | ||
Interest | 2.8 | 4.7 |
Income taxes, net of refunds | $ (16.3) | $ (11.5) |
Condensed Unaudited Consolida_5
Condensed Unaudited Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Oct. 31, 2020 | $ 472.3 | $ 0.1 | $ 496.1 | $ (21.1) | $ (2.8) |
Balance, shares at Oct. 31, 2020 | 63,403,326 | ||||
Stock-based compensation expense | 1.9 | 1.9 | |||
Exercise of common stock options | 0.2 | 0.2 | |||
Exercise of common stock options, shares | 6,000 | ||||
Vesting and issuance of restricted and performance stock units and awards, net of forfeitures and employee tax withholdings | (1.1) | (1.1) | |||
Vesting and issuance of restricted and performance stock units and awards, net of forfeitures and employee tax withholdings, shares | 901,313 | ||||
Settlement of liability classified award | 2 | 2 | |||
Settlement of liability classified award, shares | 169,142 | ||||
Balance at Jan. 31, 2021 | 475.3 | $ 0.1 | 499.1 | (21.1) | (2.8) |
Balance, shares at Jan. 31, 2021 | 64,479,781 | ||||
Balance at Oct. 31, 2021 | 518.8 | $ 0.1 | 502.1 | 16.7 | (0.1) |
Balance, shares at Oct. 31, 2021 | 64,584,291 | ||||
Net income (loss) | (0.7) | (0.7) | |||
Stock-based compensation expense | 2.3 | 2.3 | |||
Exercise of common stock options, shares | 2,400 | ||||
Vesting and issuance of restricted and performance stock units and awards, net of forfeitures and employee tax withholdings | (2.1) | (2.1) | |||
Vesting and issuance of restricted and performance stock units and awards, net of forfeitures and employee tax withholdings, shares | 274,485 | ||||
Issuance of restricted stock awards, net of forfeitures and employee tax withholdings on vested awards | (2.6) | (2.6) | |||
Issuance of restricted stock shares net of forfeitures and tax withholdings, Shares | 242,999 | ||||
Other comprehensive income, net of tax | 0.1 | $ 0.1 | |||
Repurchase and retirement of common stock | (24.4) | $ (24.4) | (24.4) | ||
Repurchase and retirement of common stock, Shares | (1,980,159) | ||||
Dividends declared on common stock | (3.3) | (3.3) | |||
Balance at Jan. 31, 2022 | $ 488.1 | $ 0.1 | $ 475.3 | $ 12.7 | |
Balance, shares at Jan. 31, 2022 | 63,124,016 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation 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, 2021. The interim results are not necessarily indicative of results for the full year. Equity Sponsor Related Party Transactions Recent Accounting Pronouncements Accounting Pronouncement Recently Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), “Simplifying the Accounting for Income Taxes”. The standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740 such as recognizing deferred taxes for equity investments, the incremental approach to performing intra-period tax allocation and calculating income taxes in interim periods. The standard also simplifies accounting for income taxes under U.S. GAAP by clarifying and amending existing guidance, including the recognition of deferred taxes for goodwill, the allocation of taxes to members of a consolidated group and requiring that an entity reflect the effect of enacted changes in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The Company adopted ASU 2019-12 as of November 1, 2021. The adoption did not have a material impact on the Company’s consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Jan. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 2. Revenue Recognition 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 and certain “pass-through” amounts collected on behalf of third parties. The Company has elected to expense incremental costs to obtain a contract when the amortization period of the related asset is expected to be less than one year. 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 recorded in “Cost of Sales” in the Condensed Unaudited Consolidated Statements of Operations and Comprehensive Loss when incurred or when the related product revenue is recognized, whichever is earlier. 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. Contract Assets and Contract Liabilities 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 when received. The corresponding performance obligations are generally satisfied within one year of the contract inception. During the three months ended January 31, 2022 and January 31, 2021, the Company recognized $31.1 million and $51.4 million, respectively, of revenue that was included in the customer advance balances of $210.6 million and $170.1 million as of October 31, 2021 and October 31, 2020, respectively. The Company’s payment terms do not include a significant financing component and the Company does not have significant contract assets. |
Leases
Leases | 3 Months Ended |
Jan. 31, 2022 | |
Leases [Abstract] | |
Leases | Note 3. Leases During the three months ended January 31, 2022 and January 31, 2021, the Company recognized total operating lease costs of $2.0 million and $2.3 million, respectively, and paid cash of $2.3 million and $2.4 million, respectively, for amounts included in the measurement of lease liabilities. At January 31, 2022, future minimum operating lease payments due under ASC 842 are summarized by fiscal year in the table below: Remaining nine months of fiscal year 2022 $ 6.9 2023 6.0 2024 3.8 2025 2.4 2026 1.3 Thereafter 6.7 Total undiscounted lease payments 27.1 Less: imputed interest (3.7 ) Total lease liabilities 23.4 As of January 31, 2022, the weighted average remaining lease term and the weighted average discount rate for operating leases was 5.6 years and 5.1%, respectively. As of 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. |
Inventories
Inventories | 3 Months Ended |
Jan. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4. Inventories Inventories consisted of the following: January 31, 2022 October 31, 2021 Chassis $ 62.7 $ 33.5 Raw materials & parts 206.8 188.0 Work in process 244.4 231.0 Finished products 23.5 39.4 537.4 491.9 Less: reserves (9.8 ) (10.2 ) Total inventories, net $ 527.6 $ 481.7 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Jan. 31, 2022 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 5. Property, Plant and Equipment Property, plant and equipment consisted of the following: January 31, 2022 October 31, 2021 Land & land improvements $ 19.5 $ 19.1 Buildings & improvements 109.0 107.5 Machinery & equipment 91.2 88.6 Rental & used vehicles 2.5 2.5 Computer hardware & software 59.1 58.9 Office furniture & fixtures 4.3 4.3 Construction in process 7.5 7.8 293.1 288.7 Less: accumulated depreciation (138.2 ) (131.1 ) Total property, plant and equipment, net $ 154.9 $ 157.6 Depreciation expense was $7.2 million and $6.1 million for the three months ended January 31, 2022, and January 31, 2021, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Jan. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 6. Goodwill and Intangible Assets The table below represents goodwill by segment: January 31, 2022 October 31, 2021 Fire & Emergency $ 88.6 $ 88.6 Commercial 26.2 26.2 Recreation 42.5 42.5 Total goodwill $ 157.3 $ 157.3 There was no change in the net carrying value of goodwill for the three months ended January 31, 2022 and January 31, 2021. Intangible assets (excluding goodwill) consisted of the following: January 31, 2022 Weighted- Average Life Gross Accumulated Amortization Net Finite-lived Customer Relationships 8.0 $ 58.4 $ (41.9 ) $ 16.5 Indefinite-lived trade names 107.4 — 107.4 Total intangible assets, net $ 165.8 $ (41.9 ) $ 123.9 October 31, 2021 Weighted- Average Life Gross Accumulated Amortization Net Finite-lived intangible assets: Customer relationships 8.0 $ 66.2 $ (47.3 ) $ 18.9 Non-compete agreements 5.0 2.0 (2.0 ) — 68.2 (49.3 ) 18.9 Indefinite-lived trade names 107.4 — 107.4 Total intangible assets, net $ 175.6 $ (49.3 ) $ 126.3 Amortization expense was $2.4 million and $2.5 million for the three months ended January 31, 2022, and January 31, 2021, respectively. As of January 31, 2022, fully amortized intangible assets and the related accumulated amortization related to Customer Relationships and Non-compete agreements were written off. |
Divestiture Activities
Divestiture Activities | 3 Months Ended |
Jan. 31, 2022 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Divestiture Activities | Note 7. Divestiture Activities In the first quarter of fiscal year 2021, in connection with a strategic review of the product portfolio, the Company made the decision to divest of 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 January 31, 2021. The carrying value of the net assets held for sale, inclusive of the cumulative translation adjustment balance attributable to this business, was greater than their fair value, less costs to sell, resulting in a loss of $3.8 million, which is included in the Condensed Unaudited Consolidated Statements of Operations and Comprehensive Loss for the three months ended January 31, 2021. The Company previously made an initial investment in its China joint venture, Anhui Chery REV Specialty Vehicle Technology Co., Ltd (“China JV”), in exchange for 10% equity interest in its China JV. The Company recorded this investment under the equity method of accounting. The Company’s investment in the China JV also includes an interest-bearing loan. During the fourth quarter of fiscal year 2021, the Company made the strategic decision to exit its interests in the China JV and began soliciting offers to sell the investment and settle the loan. In connection with this decision, the Company recorded a loss of $6.2 million, which represents the difference between the carrying value of the investment and loan and the estimated proceeds to be received upon sale and settlement, respectively. This amount was recorded as a non-operating loss within our Consolidated Statements of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2021. The Company expects to complete the sale of the investment during the second quarter of fiscal year 2022. |
Restructuring and Other Related
Restructuring and Other Related Charges | 3 Months Ended |
Jan. 31, 2022 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Other Related Charges | Note 8. Restructuring and Other Related Charges In September 2021, the Company announced that it would close its Kovatch Mobile Equipment (“KME”) production facilities located in Nesquehoning, PA and Roanoke, VA and relocate the production to other existing Fire and Emergency (“F&E”) segment facilities within the U.S. The production facilities are being closed to better align our manufacturing footprint, to access our broad operational expertise and resources, enhance quality and improve delivery times by leveraging the advanced manufacturing capabilities that we have throughout the F&E segment. The Company plans to fully shift operations within fiscal year 2022. In the first quarter of fiscal year 2022, the Company recorded restructuring charges of $3.7 million. In the first quarter of fiscal year 2022, the Company incurred additional charges of $2.1 million related to this restructuring action consisting of $1.4 million of accelerated depreciation and $0.7 million of other restructuring related charges. The Company expects to incur additional restructuring costs between $2.0 to $5.0 million and restructuring related and other charges of $2.0 and $3.0 million related to this activity. Pre-tax restructuring charges were as follows: Employee Severance and Termination Benefits Contract termination and other costs Asset Impairments Three Months Ended January 31, 2022 Fire & Emergency $ 2.8 $ 0.9 $ — $ 3.7 Changes in the Company’s restructuring reserves related to the initiatives announced during fiscal year 2021 were as follows: Employee Severance and Termination Benefits Contract termination and other costs Asset Impairment Total Balance at beginning of the period $ 1.0 $ — $ — $ 1.0 Restructuring provision 2.8 0.9 — 3.7 Utilized - cash (0.4 ) (0.6 ) — (1.0 ) Utilized - noncash (0.3 ) — (0.3 ) Balance at end of the period $ 3.4 $ — $ — $ 3.4 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Jan. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 9. Long-Term Debt The Company was obligated under the following debt instrument: January 31, 2022 October 31, 2021 2021 ABL facility $ 256.0 $ 215.0 2021 ABL Facility On April 13, 2021, the Company entered into a $550.0 million revolving credit agreement (the “2021 ABL Facility” or “2021 ABL Agreement”) with a syndicate of lenders. The 2021 ABL Facility provides for revolving loans and letters of credit in an aggregate amount of up to $550.0 million. The total credit facility is subject to a $30.0 million sublimit for swing line loans and a $35.0 million sublimit for letters of credit (plus up to an additional $20.0 million of letters of credit at issuing bank’s discretion), along with certain borrowing base and other customary restrictions as defined in the 2021 ABL Agreement. The 2021 ABL Agreement allows for incremental facilities 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 facilities are subject to receiving additional commitments from lenders and certain other customary conditions. The 2021 ABL Facility matures on April 13, 2026. The Company may prepay principal, in whole or in part, at any time without penalty. All revolving loans under the 2021 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 0.25%), subject to adjustment based on the Company’s fixed charge coverage ratio in accordance with the 2021 ABL Agreement. Interest is payable quarterly for all base rate loans and is payable the last day of any interest period or every three months for all Eurodollar rate loans. The weighted-average interest rate on borrowings outstanding under the 2021 ABL Facility was 1.81% as of January 31, 2022 The lenders under the 2021 ABL Facility have a first priority security interest in substantially all personal property assets and certain real property assets of the Company. The 2021 ABL Facility’s borrowing base is comprised of eligible receivables and eligible inventory, plus a fixed asset sublimit of certain eligible real property and eligible equipment, which fixed asset sublimit reduces by quarterly amortization as specified in the 2021 ABL Agreement. The 2021 ABL Agreement contains customary representations and warranties, affirmative and negative covenants, subject in certain cases to customary limitations, exceptions and exclusions. The 2021 ABL Agreement also contains certain customary events of default. The occurrence of an event of default under the 2021 ABL Agreement could result in the termination of the commitments under the 2021 ABL Facility and the acceleration of all outstanding borrowings under it. The 2021 ABL Agreement requires the Company to maintain a minimum fixed charge coverage ratio of 1.10 to 1.00 during certain compliance periods as specified in the 2021 ABL Agreement. The Company was in compliance with all financial covenants under the 2021 ABL Agreement as of January 31, 2022. As of January 31, 2022, the Company’s availability under the 2021 ABL Facility was $258.3 million. The fair value of the 2021 ABL Facility approximated book value on January 31, 2022 and October 31, 2021. |
Warranties
Warranties | 3 Months Ended |
Jan. 31, 2022 | |
Guarantees [Abstract] | |
Warranties | Note 10. Warranties 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. Changes in the Company’s warranty liability consisted of the following: Three Months Ended January 31, 2022 2021 Balance at beginning of period $ 37.6 $ 37.0 Warranty provisions 5.5 8.3 Settlements made (6.6 ) (8.6 ) Warranties for prior year acquisition — 1.2 Balance at end of period $ 36.5 $ 37.9 Accrued warranty is classified in the Company’s consolidated balance sheets as follows: January 31, 2022 October 31, 2021 Current liabilities $ 21.7 $ 22.3 Other long-term liabilities 14.8 15.3 Total warranty liability $ 36.5 $ 37.6 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jan. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 11. Earnings Per Share Basic earnings per common share (“EPS”) is computed by dividing net loss by the weighted average number of common shares outstanding. Diluted EPS is computed by dividing net income, if applicable, 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 and awards. The reconciliation of basic weighted-average shares outstanding to diluted weighted-average shares outstanding was as follows: Three Months Ended January 31, 2022 2021 Basic weighted-average common shares outstanding 62,803,784 63,445,973 Dilutive stock options — — Dilutive restricted stock awards — — Dilutive restricted stock units — — Dilutive performance stock units — — Diluted weighted-average common shares outstanding 62,803,784 63,445,973 The table below represents exclusions from the calculation of diluted weighted-average shares outstanding because they would have been anti-dilutive: Three Months Ended January 31, 2022 2021 Anti-dilutive stock options 48,500 266,800 Anti-dilutive restricted stock awards 1,195,144 1,117,553 Anti-dilutive restricted stock units 789,952 791,857 Anti-dilutive performance stock units — 763,326 Anti-dilutive common stock equivalents 2,033,596 2,939,536 |
Income Taxes
Income Taxes | 3 Months Ended |
Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12. Income Taxes 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 or benefit for income taxes on a quarterly basis based on the estimated annual effective income tax rate, adjusted for any discrete tax items. The Company recorded an income tax benefit of $1.8 million for the three months ended January 31, 2022, or 71.9% of pre-tax loss, compared to $0.0 million, for the three months ended January 31, 2021. Results for the three months ended January 31, 2022 were favorably impacted by $1.2 million of net discrete tax benefits primarily related to stock-based compensation tax 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. The Company’s liability for unrecognized tax benefits, including interest and penalties, was $4.1 million as of January 31, 2022 and $4.0 million as of October 31, 2021. The unrecognized tax benefits are presented in other long-term liabilities in the Company’s Condensed Unaudited Consolidated Balance Sheets as of January 31, 2022 and the Consolidated Balance Sheets as of October 31, 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 of Operations and Comprehensive Loss. The Company regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves. As of January 31, 2022, 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. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jan. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13. Commitments and Contingencies Personal Injury Actions and Other Market Risks January 31, 2022 October 31, 2021 Performance, bid and specialty bonds $ 473.3 $ 480.0 Open standby letters of credit 13.4 23.6 Total $ 486.7 $ 503.6 Chassis Contingent Liabilities Repurchase Commitments Guarantee Arrangements Other Matters A consolidated federal putative securities class action and a consolidated state putative securities class action that had been pending against the Company and certain of its officers and directors have each been settled. These actions collectively purported 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 named 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 alleged certain violations of the Securities Act of 1933 and, for the federal action, the Securities Exchange Act of 1934. Collectively, the actions s ought certification of the putative classes asserted and compensatory damages and attorneys’ fees and costs. The consolidated state action was stayed in favor of the consolidated federal action. On May 19, 2021, the parties to the consolidated federal and state putative securities class actions executed a stipulation of settlement for a class settlement with the court and moved for preliminary approval of the settlement . The settlement payment is being fully covered by the Company ’ s insurers . The settlement payment and the related insurance proceeds were recorded in other current liabilities and other current assets, respectively, in the Company’s Consolidated Balance Sheets as of October 31, 2021. On August 24, 2021, the court preliminarily approved the settlement. Notice was then given to the classes certified for settlement, and the court entered a final judgment approving the settlement on December 9, 2021. During the first quarter of fiscal year 2022 , the Company’s insurers made the final settlement payment . As of January 31, 2022, there are no further amounts recorded in the Condensed Unaudited Consolidated Balance Sheets . Two purported derivative actions, which have since been consolidated, were also filed 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 parties to the consolidated derivative actions reached a settlement in principle on all issues other than plaintiffs’ counsel’s attorneys’ fees on or about February 17, 2021, and an agreement with respect to plaintiffs’ counsel’s attorneys’ fees on or about November 3, 2021. The plaintiffs filed a stipulation of settlement for the derivative actions with the court and moved for preliminary approval of the settlement on January 14, 2022. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Jan. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 14. Business Segment Information The Company is organized into three 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 Commercial Recreation REV Recreation Group (“RRG”) 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. Selected financial information of the Company’s segments is as follows: Three Months Ended January 31, 2022 Fire & Emergency Commercial Recreation Corporate, Other & Elims Consolidated Net sales $ 237.4 $ 97.5 $ 202.6 $ (0.5 ) $ 537.0 Depreciation and amortization $ 4.4 $ 0.8 $ 3.9 $ 0.5 $ 9.6 Capital expenditures $ 2.4 $ 0.6 $ 1.1 $ 0.4 $ 4.5 Total assets $ 680.6 $ 220.0 $ 331.1 $ 60.6 $ 1,292.3 Adjusted EBITDA $ 1.8 $ 7.8 $ 17.1 $ (8.4 ) Three Months Ended January 31, 2021 Fire & Emergency Commercial Recreation Corporate, Other & Elims Consolidated Net sales $ 280.6 $ 83.1 $ 190.2 $ 0.1 $ 554.0 Depreciation and amortization $ 3.1 $ 0.7 $ 3.6 $ 1.2 $ 8.6 Capital expenditures $ 1.3 $ 0.8 $ 0.4 $ 0.4 $ 2.9 Total assets $ 692.0 $ 205.7 $ 319.1 $ 42.3 $ 1,259.1 Adjusted EBITDA $ 10.2 $ 7.1 $ 15.1 $ (9.2 ) 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, income taxes and loss on early extinguishment of debt, 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 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 loss: Three Months Ended January 31, 2022 2021 Fire & Emergency Adjusted EBITDA $ 1.8 $ 10.2 Commercial Adjusted EBITDA 7.8 7.1 Recreation Adjusted EBITDA 17.1 15.1 Corporate and Other Adjusted EBITDA (8.4 ) (9.2 ) Depreciation and amortization (9.6 ) (8.6 ) Interest expense, net (3.4 ) (5.5 ) Benefit for income taxes 1.8 — Transaction expenses (0.2 ) (2.3 ) Sponsor expense reimbursement (0.1 ) (0.2 ) Restructuring costs (3.7 ) (1.0 ) Restructuring related charges (0.7 ) — Stock-based compensation expense (2.3 ) (1.9 ) Legal matters (0.8 ) (0.4 ) 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 ) Net loss $ (0.7 ) $ — |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Jan. 31, 2022 | |
Equity [Abstract] | |
Stock Repurchase Program | Note 15. Stock Repurchase Program On September 2, 2021, the Company’s Board of Directors approved the authorization of a new share repurchase program that allowed the repurchase of up to $150.0 million of the Company’s outstanding common stock. The share repurchase authorization expires in 24 months and gives management the flexibility to determine conditions under which shares may be purchased. During the first quarter of fiscal year 2022, the Company repurchased 1,980,159 shares under this repurchase program at a total cost of $24.4 million at an average price of $12.29 per share. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jan. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16. Subsequent Events Quarterly Dividend On March 3, 2022, the Company’s Board of Directors declared a quarterly cash dividend in the amount of $0.05 per share of common stock, which equates to a rate of $0.20 per share of common stock on an annualized basis, payable on April 15, 2022 to shareholders of record on March 31, 2022. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncement Recently Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), “Simplifying the Accounting for Income Taxes”. The standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740 such as recognizing deferred taxes for equity investments, the incremental approach to performing intra-period tax allocation and calculating income taxes in interim periods. The standard also simplifies accounting for income taxes under U.S. GAAP by clarifying and amending existing guidance, including the recognition of deferred taxes for goodwill, the allocation of taxes to members of a consolidated group and requiring that an entity reflect the effect of enacted changes in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The Company adopted ASU 2019-12 as of November 1, 2021. The adoption did not have a material impact on the Company’s consolidated financial statements. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Leases [Abstract] | |
Schedule of Future Minimum Operating Lease Payments Due Under ASC 842 | At January 31, 2022, future minimum operating lease payments due under ASC 842 are summarized by fiscal year in the table below: Remaining nine months of fiscal year 2022 $ 6.9 2023 6.0 2024 3.8 2025 2.4 2026 1.3 Thereafter 6.7 Total undiscounted lease payments 27.1 Less: imputed interest (3.7 ) Total lease liabilities 23.4 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: January 31, 2022 October 31, 2021 Chassis $ 62.7 $ 33.5 Raw materials & parts 206.8 188.0 Work in process 244.4 231.0 Finished products 23.5 39.4 537.4 491.9 Less: reserves (9.8 ) (10.2 ) Total inventories, net $ 527.6 $ 481.7 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment consisted of the following: January 31, 2022 October 31, 2021 Land & land improvements $ 19.5 $ 19.1 Buildings & improvements 109.0 107.5 Machinery & equipment 91.2 88.6 Rental & used vehicles 2.5 2.5 Computer hardware & software 59.1 58.9 Office furniture & fixtures 4.3 4.3 Construction in process 7.5 7.8 293.1 288.7 Less: accumulated depreciation (138.2 ) (131.1 ) Total property, plant and equipment, net $ 154.9 $ 157.6 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill by Segment | The table below represents goodwill by segment: January 31, 2022 October 31, 2021 Fire & Emergency $ 88.6 $ 88.6 Commercial 26.2 26.2 Recreation 42.5 42.5 Total goodwill $ 157.3 $ 157.3 |
Summary of Intangible Assets Excluding Goodwill | Intangible assets (excluding goodwill) consisted of the following: January 31, 2022 Weighted- Average Life Gross Accumulated Amortization Net Finite-lived Customer Relationships 8.0 $ 58.4 $ (41.9 ) $ 16.5 Indefinite-lived trade names 107.4 — 107.4 Total intangible assets, net $ 165.8 $ (41.9 ) $ 123.9 October 31, 2021 Weighted- Average Life Gross Accumulated Amortization Net Finite-lived intangible assets: Customer relationships 8.0 $ 66.2 $ (47.3 ) $ 18.9 Non-compete agreements 5.0 2.0 (2.0 ) — 68.2 (49.3 ) 18.9 Indefinite-lived trade names 107.4 — 107.4 Total intangible assets, net $ 175.6 $ (49.3 ) $ 126.3 |
Restructuring and Other Relat_2
Restructuring and Other Related Charges (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Pre-tax Restructuring Charges | Pre-tax restructuring charges were as follows: Employee Severance and Termination Benefits Contract termination and other costs Asset Impairments Three Months Ended January 31, 2022 Fire & Emergency $ 2.8 $ 0.9 $ — $ 3.7 |
Schedule of Changes in Restructuring Reserves Related to Initiatives Announced | Changes in the Company’s restructuring reserves related to the initiatives announced during fiscal year 2021 were as follows: Employee Severance and Termination Benefits Contract termination and other costs Asset Impairment Total Balance at beginning of the period $ 1.0 $ — $ — $ 1.0 Restructuring provision 2.8 0.9 — 3.7 Utilized - cash (0.4 ) (0.6 ) — (1.0 ) Utilized - noncash (0.3 ) — (0.3 ) Balance at end of the period $ 3.4 $ — $ — $ 3.4 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | The Company was obligated under the following debt instrument: January 31, 2022 October 31, 2021 2021 ABL facility $ 256.0 $ 215.0 |
Warranties (Tables)
Warranties (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Guarantees [Abstract] | |
Schedule of Changes in Warranty Liability | Changes in the Company’s warranty liability consisted of the following: Three Months Ended January 31, 2022 2021 Balance at beginning of period $ 37.6 $ 37.0 Warranty provisions 5.5 8.3 Settlements made (6.6 ) (8.6 ) Warranties for prior year acquisition — 1.2 Balance at end of period $ 36.5 $ 37.9 |
Accrued Warranty Classified in Consolidated Balance Sheets | Accrued warranty is classified in the Company’s consolidated balance sheets as follows: January 31, 2022 October 31, 2021 Current liabilities $ 21.7 $ 22.3 Other long-term liabilities 14.8 15.3 Total warranty liability $ 36.5 $ 37.6 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic Weighted-Average Common Shares Outstanding to Diluted Weighted-Average Shares Outstanding | The reconciliation of basic weighted-average shares outstanding to diluted weighted-average shares outstanding was as follows: Three Months Ended January 31, 2022 2021 Basic weighted-average common shares outstanding 62,803,784 63,445,973 Dilutive stock options — — Dilutive restricted stock awards — — Dilutive restricted stock units — — Dilutive performance stock units — — Diluted weighted-average common shares outstanding 62,803,784 63,445,973 |
Exclusions from Calculation of Weighted-Average Shares Outstanding Assuming Dilution Due to Anti-Dilutive Effect of Common Stock Equivalents | The table below represents exclusions from the calculation of diluted weighted-average shares outstanding because they would have been anti-dilutive: Three Months Ended January 31, 2022 2021 Anti-dilutive stock options 48,500 266,800 Anti-dilutive restricted stock awards 1,195,144 1,117,553 Anti-dilutive restricted stock units 789,952 791,857 Anti-dilutive performance stock units — 763,326 Anti-dilutive common stock equivalents 2,033,596 2,939,536 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Contingent Liabilities | 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: January 31, 2022 October 31, 2021 Performance, bid and specialty bonds $ 473.3 $ 480.0 Open standby letters of credit 13.4 23.6 Total $ 486.7 $ 503.6 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Segment Reporting [Abstract] | |
Selected Financial Information of Segments | Selected financial information of the Company’s segments is as follows: Three Months Ended January 31, 2022 Fire & Emergency Commercial Recreation Corporate, Other & Elims Consolidated Net sales $ 237.4 $ 97.5 $ 202.6 $ (0.5 ) $ 537.0 Depreciation and amortization $ 4.4 $ 0.8 $ 3.9 $ 0.5 $ 9.6 Capital expenditures $ 2.4 $ 0.6 $ 1.1 $ 0.4 $ 4.5 Total assets $ 680.6 $ 220.0 $ 331.1 $ 60.6 $ 1,292.3 Adjusted EBITDA $ 1.8 $ 7.8 $ 17.1 $ (8.4 ) Three Months Ended January 31, 2021 Fire & Emergency Commercial Recreation Corporate, Other & Elims Consolidated Net sales $ 280.6 $ 83.1 $ 190.2 $ 0.1 $ 554.0 Depreciation and amortization $ 3.1 $ 0.7 $ 3.6 $ 1.2 $ 8.6 Capital expenditures $ 1.3 $ 0.8 $ 0.4 $ 0.4 $ 2.9 Total assets $ 692.0 $ 205.7 $ 319.1 $ 42.3 $ 1,259.1 Adjusted EBITDA $ 10.2 $ 7.1 $ 15.1 $ (9.2 ) |
Reconciliation of Segment Adjusted EBITDA to Net (Loss) Income | Provided below is a reconciliation of segment Adjusted EBITDA to net loss: Three Months Ended January 31, 2022 2021 Fire & Emergency Adjusted EBITDA $ 1.8 $ 10.2 Commercial Adjusted EBITDA 7.8 7.1 Recreation Adjusted EBITDA 17.1 15.1 Corporate and Other Adjusted EBITDA (8.4 ) (9.2 ) Depreciation and amortization (9.6 ) (8.6 ) Interest expense, net (3.4 ) (5.5 ) Benefit for income taxes 1.8 — Transaction expenses (0.2 ) (2.3 ) Sponsor expense reimbursement (0.1 ) (0.2 ) Restructuring costs (3.7 ) (1.0 ) Restructuring related charges (0.7 ) — Stock-based compensation expense (2.3 ) (1.9 ) Legal matters (0.8 ) (0.4 ) 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 ) Net loss $ (0.7 ) $ — |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
ASU 2019-12 [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Change in accounting principle, accounting standards update, adopted [true false] | true | |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Nov. 1, 2021 | |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | |
Primary Equity Holder [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Selling, general and administrative expenses charged by primary equity holder | $ 0.1 | $ 0.2 |
American Industrial Partners [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Equity interest held by operating partnership, voting equity | 43.70% |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Oct. 31, 2021 | Oct. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | ||||
Revenue recognized included in customer advances | $ 31.1 | $ 51.4 | $ 210.6 | $ 170.1 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 2 | $ 2.3 |
Operating lease, payments | $ 2.3 | $ 2.4 |
Weighted average remaining lease term for operating leases | 5 years 7 months 6 days | 4 years 4 months 24 days |
Weighted average discount rate for operating leases | 5.10% | 5.00% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Operating Lease Payments Due Under ASC 842 (Detail) $ in Millions | Jan. 31, 2022USD ($) |
Leases [Abstract] | |
Remaining nine months of fiscal year 2022 | $ 6.9 |
2023 | 6 |
2024 | 3.8 |
2025 | 2.4 |
2026 | 1.3 |
Thereafter | 6.7 |
Total undiscounted lease payments | 27.1 |
Less: imputed interest | (3.7) |
Total lease liabilities | $ 23.4 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Jan. 31, 2022 | Oct. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Chassis | $ 62.7 | $ 33.5 |
Raw materials & parts | 206.8 | 188 |
Work in process | 244.4 | 231 |
Finished products | 23.5 | 39.4 |
Inventory, Gross, Total | 537.4 | 491.9 |
Less: reserves | (9.8) | (10.2) |
Total inventories, net | $ 527.6 | $ 481.7 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Jan. 31, 2022 | Oct. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 293.1 | $ 288.7 |
Less: accumulated depreciation | (138.2) | (131.1) |
Total property, plant and equipment, net | 154.9 | 157.6 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 19.5 | 19.1 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 109 | 107.5 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 91.2 | 88.6 |
Rental and Used Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2.5 | 2.5 |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 59.1 | 58.9 |
Office Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4.3 | 4.3 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 7.5 | $ 7.8 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 7.2 | $ 6.1 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Goodwill by Segment (Detail) - USD ($) $ in Millions | Jan. 31, 2022 | Oct. 31, 2021 |
Goodwill [Line Items] | ||
Goodwill | $ 157.3 | $ 157.3 |
Fire & Emergency [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 88.6 | 88.6 |
Commercial [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 26.2 | 26.2 |
Recreation [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 42.5 | $ 42.5 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Change in net carrying value of goodwill | $ 0 | $ 0 |
Amortization expense | $ 2,400,000 | $ 2,500,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Intangible Assets Excluding Goodwill (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jan. 31, 2022 | Oct. 31, 2021 | |
Intangible Assets Excluding Goodwill [Line Items] | ||
Finite-lived intangible assets, gross | $ 68.2 | |
Finite-lived intangible assets, accumulated amortization | $ (41.9) | (49.3) |
Finite-lived intangible assets, net | 18.9 | |
Indefinite-lived trade names | 107.4 | 107.4 |
Total intangible assets, gross | 165.8 | 175.6 |
Total intangible assets, net | $ 123.9 | $ 126.3 |
Customer Relationships [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Finite-lived intangible assets, Weighted-Average Life | 8 years | 8 years |
Finite-lived intangible assets, gross | $ 58.4 | $ 66.2 |
Finite-lived intangible assets, accumulated amortization | (41.9) | (47.3) |
Finite-lived intangible assets, net | $ 16.5 | $ 18.9 |
Non-compete Agreements [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Finite-lived intangible assets, Weighted-Average Life | 5 years | |
Finite-lived intangible assets, gross | $ 2 | |
Finite-lived intangible assets, accumulated amortization | $ (2) |
Divestiture Activities - Additi
Divestiture Activities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Oct. 31, 2021 | Jan. 31, 2021 | Apr. 30, 2018 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Gain (loss) on sale of business | $ 3.8 | ||
China JV [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Gain (loss) on sale of business | $ 6.2 | ||
Equity interest in joint ventures | 10.00% |
Restructuring and Other Relat_3
Restructuring and Other Related Charges - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Restructuring Cost And Reserve [Line Items] | ||
Restructuring | $ 3.7 | $ 1 |
Additional restructuring charges | 2.1 | |
Restructuring charges, accelerated depreciation | 1.4 | |
Other restructuring related charges | 0.7 | |
Minimum [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring | 2 | |
Other restructuring related charges | 2 | |
Maximum [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring | 5 | |
Other restructuring related charges | $ 3 |
Restructuring and Other Relat_4
Restructuring and Other Related Charges - Schedule of Pre-tax Restructuring Charges (Detail) - Fire & Emergency [Member] $ in Millions | 3 Months Ended |
Jan. 31, 2022USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Pre-tax restructuring charges | $ 3.7 |
Employee Severance and Termination Benefits [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Pre-tax restructuring charges | 2.8 |
Contract Termination and Other Costs [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Pre-tax restructuring charges | $ 0.9 |
Restructuring and Other Relat_5
Restructuring and Other Related Charges - Schedule of Changes in Restructuring Reserves Related to Initiatives Announced (Detail) $ in Millions | 3 Months Ended |
Jan. 31, 2022USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Balance at beginning of the period | $ 1 |
Restructuring provision | 3.7 |
Utilized - cash | (1) |
Utilized - noncash | (0.3) |
Balance at end of the period | 3.4 |
Employee Severance and Termination Benefits [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Balance at beginning of the period | 1 |
Restructuring provision | 2.8 |
Utilized - cash | (0.4) |
Balance at end of the period | 3.4 |
Contract Termination and Other Costs [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Restructuring provision | 0.9 |
Utilized - cash | (0.6) |
Utilized - noncash | $ (0.3) |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Millions | Jan. 31, 2022 | Oct. 31, 2021 |
Debt Instruments [Abstract] | ||
2021 ABL facility | $ 256 | $ 215 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) $ in Millions | Apr. 13, 2021 | Jan. 31, 2022 |
2021 Asset Based Lending Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 550 | |
Incremental borrowing capacity amount | 100 | |
Debt instrument maturity date | Apr. 13, 2026 | |
Available current borrowing capacity | $ 258.3 | |
2021 Asset Based Lending Facility [Member] | Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument applicable interest rate margins | 0.75% | |
2021 Asset Based Lending Facility [Member] | Eurodollar [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument applicable interest rate margins | 1.75% | |
Required annual payment percentage | 0.25% | |
2021 Asset Based Lending Facility [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Additional borrowing capacity | $ 20 | |
Fixed charge coverage ratio | 110.00% | |
2021 Asset Based Lending Facility [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Fixed charge coverage ratio | 100.00% | |
2021 Asset Based Lending Facility [Member] | Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 35 | |
2021 Asset Based Lending Facility [Member] | Letter of Credit [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 550 | |
2021 Asset Based Lending Facility [Member] | Swing Lines Loan [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 30 | |
2017 Asset Based Lending Facility [Member] | ||
Debt Instrument [Line Items] | ||
Weighted-average interest rate | 1.81% |
Warranties - Schedule of Change
Warranties - Schedule of Changes in Warranty Liability (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Guarantees [Abstract] | ||
Balance at beginning of period | $ 37.6 | $ 37 |
Warranty provisions | 5.5 | 8.3 |
Settlements made | (6.6) | (8.6) |
Warranties for prior year acquisition | 1.2 | |
Balance at end of period | $ 36.5 | $ 37.9 |
Warranties - Accrued Warranty C
Warranties - Accrued Warranty Classified in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Jan. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2021 | Oct. 31, 2020 |
Guarantees [Abstract] | ||||
Current liabilities | $ 21.7 | $ 22.3 | ||
Other long-term liabilities | 14.8 | 15.3 | ||
Total warranty liability | $ 36.5 | $ 37.6 | $ 37.9 | $ 37 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic Weighted-Average Common Shares Outstanding to Diluted Weighted-Average Shares Outstanding (Detail) - shares | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Basic weighted-average common shares outstanding | 62,803,784 | 63,445,973 |
Dilutive stock options | 0 | 0 |
Dilutive restricted stock awards | 0 | 0 |
Dilutive restricted stock units | 0 | 0 |
Dilutive performance stock units | 0 | 0 |
Diluted weighted-average common shares outstanding | 62,803,784 | 63,445,973 |
Earnings Per Share - Exclusions
Earnings Per Share - Exclusions from Calculation of Weighted-Average Shares Outstanding Assuming Dilution Due to Anti-Dilutive Effect of Common Stock Equivalents (Detail) - shares | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive common stock equivalents | 2,033,596 | 2,939,536 |
Stock Options [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive common stock equivalents | 48,500 | 266,800 |
Restricted Stock Awards [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive common stock equivalents | 1,195,144 | 1,117,553 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive common stock equivalents | 789,952 | 791,857 |
Performance Stock Units [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive common stock equivalents | 0 | 763,326 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Oct. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) | $ (1.8) | $ 0 | |
Pre-tax (income) loss | (71.90%) | ||
Net discrete tax expense (benefit) related to share-based compensation | $ (1.2) | ||
Unrecognized tax benefits | $ 4.1 | $ 4 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Contingent Liabilities (Detail) - USD ($) $ in Millions | Jan. 31, 2022 | Oct. 31, 2021 |
Commitments And Contingencies Disclosure [Abstract] | ||
Performance, bid and specialty bonds | $ 473.3 | $ 480 |
Open standby letters of credit | 13.4 | 23.6 |
Total | $ 486.7 | $ 503.6 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Jan. 31, 2022 | Oct. 31, 2021 | |
Loss Contingencies [Line Items] | ||
Contingent liability under purchase agreements for future chassis inventory purchases | $ 7,600,000 | $ 13,900,000 |
Repurchase agreement | 2 years | |
Represents the gross value of all vehicles under repurchase agreements | $ 195,900,000 | 185,800,000 |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Estimated loss exposure under contract | $ 13,300,000 | $ 14,800,000 |
Business Segment Information -
Business Segment Information - Additional Information (Detail) | 3 Months Ended |
Jan. 31, 2022Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Business Segment Information _2
Business Segment Information - Schedule of Selected Financial Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Oct. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 537 | $ 554 | |
Depreciation and amortization | 9.6 | 8.6 | |
Capital expenditures | 4.5 | 2.9 | |
Total assets | 1,292.3 | 1,259.1 | $ 1,238.3 |
Operating Segment [Member] | Fire & Emergency [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 237.4 | 280.6 | |
Depreciation and amortization | 4.4 | 3.1 | |
Capital expenditures | 2.4 | 1.3 | |
Total assets | 680.6 | 692 | |
Adjusted EBITDA | 1.8 | 10.2 | |
Operating Segment [Member] | Commercial [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 97.5 | 83.1 | |
Depreciation and amortization | 0.8 | 0.7 | |
Capital expenditures | 0.6 | 0.8 | |
Total assets | 220 | 205.7 | |
Adjusted EBITDA | 7.8 | 7.1 | |
Operating Segment [Member] | Recreation [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 202.6 | 190.2 | |
Depreciation and amortization | 3.9 | 3.6 | |
Capital expenditures | 1.1 | 0.4 | |
Total assets | 331.1 | 319.1 | |
Adjusted EBITDA | 17.1 | 15.1 | |
Corporate, Other and Elims [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | (0.5) | 0.1 | |
Depreciation and amortization | 0.5 | 1.2 | |
Capital expenditures | 0.4 | 0.4 | |
Total assets | 60.6 | 42.3 | |
Adjusted EBITDA | $ (8.4) | $ (9.2) |
Business Segment Information _3
Business Segment Information - Reconciliation of Segment Adjusted EBITDA to Net (Loss) Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Interest expense, net | $ (3.4) | $ (5.5) |
Benefit for income taxes | 1.8 | 0 |
Restructuring costs | (3.7) | (1) |
Stock-based compensation expense | (2.3) | (1.9) |
Net loss on sale of assets and business held for sale | (3.8) | |
Net loss | (0.7) | |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | (8.4) | (9.2) |
Operating Segment [Member] | Fire & Emergency [Member] | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 1.8 | 10.2 |
Operating Segment [Member] | Commercial [Member] | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 7.8 | 7.1 |
Operating Segment [Member] | Recreation [Member] | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 17.1 | 15.1 |
Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | (9.6) | (8.6) |
Interest expense, net | (3.4) | (5.5) |
Benefit for income taxes | 1.8 | |
Transaction expenses | (0.2) | (2.3) |
Sponsor expense reimbursement | (0.1) | (0.2) |
Restructuring costs | (3.7) | (1) |
Restructuring related charges | (0.7) | |
Stock-based compensation expense | (2.3) | (1.9) |
Legal matters | (0.8) | (0.4) |
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) | |
Net loss | $ (0.7) |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Jan. 31, 2022 | Sep. 02, 2021 | |
Equity Class Of Treasury Stock [Line Items] | ||
Stock repurchase program, total cost | $ 24,400,000 | |
Common Stock [Member] | ||
Equity Class Of Treasury Stock [Line Items] | ||
Stock repurchase program, number of remaining shares purchased | 1,980,159 | |
Stock repurchase program, total cost | $ 24,400,000 | |
Stock repurchase program, average price per share | $ 12.29 | |
Common Stock [Member] | Maximum [Member] | ||
Equity Class Of Treasury Stock [Line Items] | ||
Stock repurchase program, authorized amount to repurchase issued and outstanding common stock | $ 150,000,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - $ / shares | Mar. 03, 2022 | Jan. 31, 2022 |
Subsequent Event [Line Items] | ||
Dividends declared per common share | $ 0.05 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Dividends declared per common share | $ 0.05 | |
Per share of common stock on annualized basis | $ 0.20 | |
Dividend payable date | Apr. 15, 2022 | |
Dividends payable, record date | Mar. 31, 2022 |