Benzinga | Jul 9, 2021 08:58AM EDT

Greenbrier Reports Q3 Revenue Increase Of 52% Sequentially

* Greenbrier Companies Inc (NYSE:GBX) reported a Q3 revenue decline of 41% year-over-year to $450.1 million, missing the consensus of $489.44 million.

* Adjusted net earnings were $23.3 million or $0.69.

* Revenues increased by 52.3% Q/Q, reflecting 65% higher deliveries.

* Revenue by segments: Manufacturing $341.94 million (-47.7% Y/Y); Wheels, Repair & Parts $80.87 million (-1.4% Y/Y); and Leasing & Services $27.33 million (-0.7% Y/Y).

* Q3 Gross margin was 16.7%, up by 260 bps, and operating margin declined by 305 bps to 5.7%.

* Q3 Adjusted EBITDA was $52.9 million compared to $(1.3) million loss in Q2.

* The company used $123.84 million in net cash from operating activities year-to-date compared to $89 million in cash generated a year ago.

* New railcar orders for 3,800 units valued at $400M and deliveries of 3,300 units, with a 1.2x book-to-bill ratio.

* Diversified new railcar backlog was 24,800 units, valued at ~$2.6 billion, as of May 31, 2021.

* GBX liquidity stands at ~$850 million, with $628 million in cash and $221 million in available borrowing capacity.

* The company expects commercial activity to remain strong as a $2.6 billion backlog provides a baseload of orders to support the expanded operation of production lines and leasing business.

* Price action: GBX shares are trading higher by 4.93% at $42.02 in the premarket session on the last check Friday.