REV Group Inc. (NASDAQ: REVG) stock declined by 0.94% at the last close while the REVG stock price gains by 4.1% in the pre-market trading session. REV Group is a prominent designer, producer, and distributor of specialist vehicles, as well as components and services for them. REVG has three categories that service a diverse consumer base, particularly in the United States: Fire & Emergency, Commercial, and Recreation.
What is happening?
REVG disclosed the pricing of a previously reported underwritten offering through certain selling stockholders of 5,500,000 shares of common stock at the public offering price of $15.50 per share. Furthermore, the selling stockholders have given the underwriters the right to acquire up to 825,000 additional shares of common stock from them. The selling shareholders will not get any funds from the offering, and REV Group will not sell any shares of common stock in the offering. Pursuant to normal closing conditions, the offering is scheduled to conclude on or about June 15, 2021.
J.P. Morgan, Morgan Stanley, Baird, and Goldman Sachs & Co. Morgan is serving as the offering’s joint lead book-running manager. The offering’s joint book-running managers are BMO Capital Markets and Jefferies.
Recent Past Development
REVG’s total income for the second quarter of 2021 was $20.6 million, or $0.31 per diluted share while the adjusted net income was $25.7 million, or $0.39 per diluted share, in the second quarter of 2021, relative to an Adjusted Net Loss of $5.8 million, or $0.09 per diluted share, in the second quarter of 2020.
In the second quarter of 2021, adjusted EBITDA was $45.5 million, up from $7.6 million in the second quarter of 2020. Increased contribution from all areas drove the growth in Adjusted EBITDA during the quarter.
REV Group Inc. President and CEO Rod Rushing stated,
REVG is thrilled with their second-quarter results, which exceeded their estimates and resulted in a record first-half profit. While supply chain and labor limitations are anticipated to persist in the second half of the year, the success and momentum REVG is achieving via their operational measures, along with a record $2.3 billion backlog, has enabled them to enhance their outlook for the whole fiscal year 2021. REVG Board’s decision to resume the quarterly cash dividend demonstrates its belief in their improved financial condition and performance.