REV Group Inc (REVG) has released an update to notify the public and investors about termination and asset disposition expenses.
The Company’s Board of Directors decided to cease manufacturing operations at the ElDorado National (California) facility to focus on a portfolio that enhances growth, cash flow, and margins. The discontinuation is projected to cost $23 to $29 million in pre-tax charges, with $7 to $8 million in cash for severance and related benefits, and $16 to $21 million in non-cash impairments. Additional costs are expected but uncertain at this point. Proceeds from asset sales may offset these charges. The Plan, starting immediately, aims to conclude by the end of fiscal year 2024, after fulfilling existing orders. Cost estimates are based on assumptions and may be adjusted as the Plan progresses.
For further insights into REVG financials, check out TipRanks’ Financials page.
For a comprehensive understanding of the announcement, you can read the full document here.
