LAKE OSWEGO, Ore., Jan. 5, 2018 /PRNewswire/ -- The Greenbrier
Companies, Inc. (NYSE: GBX) today reported financial results for
its first fiscal quarter ended November 30,
2017.
First Quarter Highlights
- Net earnings attributable to Greenbrier for the quarter were
$26.3 million, or $0.83 per diluted share, on revenue of
$559.5 million.
- Quarterly results included $3.4
million ($2.3 million
after-tax or $0.07 per diluted share)
of expense related to resolution of litigation in a foreign
jurisdiction. Additionally, the tax rate for the quarter was
33.3% attributable to discrete items and the geographic mix of
earnings. Compared to the previous annual tax rate guidance
of 29%, the impact of the higher quarterly rate is $0.07 per diluted share.
- Adjusted EBITDA for the quarter was $76.9 million, or 13.7% of revenue.
- Orders for 3,200 diversified railcars were received during this
quarter, valued at over $290
million.
- New railcar backlog as of November 30,
2017 was 26,500 units with an estimated value of
$2.56 billion.
- New railcar deliveries totaled 4,400 units for the
quarter.
- Board declares a quarterly dividend of $0.23 per share, payable on February 16, 2018 to shareholders as of
January 26, 2018.
William A. Furman, Chairman and
CEO, said, "Greenbrier advanced several key initiatives during the
quarter and is on track to achieve our goals for the year.
While the new railcar market in North America is challenging, broad-based
demand for Greenbrier's products and services remains steady and we
expect will trend higher as we advance through fiscal 2018.
During the recent quarter, Greenbrier received 3,200 orders
for a broad range of railcar types including covered hoppers,
tanks, automotive carrying units and our first orders for open top
hoppers for use in aggregate service. Greenbrier's
disciplined balance sheet management has resulted in a strong cash
position and very low net debt, enabling us to invest strategically
and return capital to shareholders. Good backlog visibility
combined with a strong balance sheet provides the flexibility we
need to build railcars when and where customers need them, across
four continents."
Furman concluded, "Based on first quarter results, we are
confident in our guidance for the year. As fiscal 2018 progresses,
we will continue integration of our new manufacturing investments
and will continue to expand internationally. Greenbrier is
well positioned to achieve its ambitious business objectives for
fiscal 2018 as growth in North American and international markets
drives increased revenues, deliveries and EPS compared to fiscal
2017."
Business Outlook
Based on current business trends, industry forecasts and
production schedules for fiscal 2018, and excluding the expected
benefits of the recent tax reform act, Greenbrier believes:
- Deliveries will be approximately 20,000 – 22,000 units
including Greenbrier-Maxion (Brazil) which will account for up to 10% of
deliveries
- Revenue will be $2.4 –
$2.6 billion
- Diluted EPS will be $4.00
As noted in the "Safe Harbor" statement, there are risks to
achieving this guidance. Certain orders and backlog in this
release are subject to customary documentation and completion of
terms.
Financial Summary
|
Q1
FY18
|
Q4
FY17
|
Sequential
Comparison – Main Drivers
|
Revenue
|
$559.5M
|
$611.4M
|
Down 8.5% primarily
due to lower volume of deliveries due to timing of
syndications
|
Gross
margin
|
16.0%
|
16.3%
|
Down 30 bps due to
product mix shifts
|
Selling
and
administrative
expense
|
$47.0M
|
$47.1M
|
Down modestly due to
lower employee related costs; includes foreign legal settlement
expense
|
Gain on
disposition
of
equipment
|
($19.2M)
|
($4.9M)
|
Increase reflects
rebalancing of lease portfolio
|
Adjusted
EBITDA
|
$76.9M
|
$73.3M
|
Higher operating
margin
|
Effective tax
rate
|
33.3%
|
20.7%
|
Reflects foreign
discrete items and a change in the geographic mix of
earnings
|
Loss from
unconsolidated
affiliates
|
($2.9M)
|
($6.5M)
(1)
|
Continued operating
challenges at GBW
|
Net earnings
attributable
to noncontrolling
interest
|
($7.1M)
|
($8.5M)
|
Driven primarily by
lower deliveries and timing of railcar syndications at our GIMSA
JV
|
Adjusted net earnings
attributable to Greenbrier
|
$26.3M
|
$27.3M
|
|
Adjusted diluted
EPS
|
$0.83
|
$0.86
|
|
(1) Includes $3.5
million, net of tax, or $0.11
per share, impact associated with a non-cash goodwill impairment
charge recorded by GBW.
Segment Summary
|
Q1
FY18
|
Q4
FY17
|
Sequential
Comparison – Main Drivers
|
Manufacturing
|
Revenue
|
$451.5M
|
$508.5M
|
Down 11.2% due to
lower volume of deliveries
|
Gross
margin
|
15.6%
|
16.3%
|
Down 70 bps primarily
due to product mix shifts
|
Operating
margin (1)
|
11.7%
|
13.5%
|
|
Deliveries
(2)
|
4,000
|
5,200
|
|
Wheels &
Parts
|
Revenue
|
$78.0M
|
$75.1M
|
Up 3.9% primarily
attributable to higher wheel and component volume
|
Gross
margin
|
7.1%
|
7.0%
|
Up 10 bps due to
higher volume
|
Operating
margin (1)
|
3.1%
|
3.0%
|
|
Leasing &
Services
|
Revenue
|
$30.0M
|
$27.8M
|
Up 7.9% due to higher
volume of externally sourced railcar syndications
|
Gross
margin
|
43.9%
|
42.1%
|
Up 180 bps primarily
due to higher interim rent
|
Operating
margin (1) (3)
|
93.8%
|
27.2%
|
Driven by higher
level of gains on disposition of equipment due to rebalancing of
lease fleet
|
Lease fleet
utilization
|
91.8%
|
92.1%
|
|
(1) See supplemental segment information on page 9
for additional information.
(2) Excludes Brazil
deliveries which are not consolidated into manufacturing revenue
and margins.
(3) Includes Net gain on disposition of equipment,
which is excluded from gross margin.
Conference Call
Greenbrier will host a teleconference to discuss its first
quarter 2018 results. In conjunction with this news release,
Greenbrier has posted a supplemental earnings presentation to our
website.
Teleconference details are as follows:
- January 5, 2018
- 8:00 a.m. Pacific Standard
Time
- Phone: 1-630-395-0143, Password: "Greenbrier"
- Real-time Audio Access: ("Newsroom" at
http://www.gbrx.com)
Please access the site 10 minutes prior to the start
time.
About Greenbrier
Greenbrier, headquartered in Lake
Oswego, Oregon, is a leading international supplier of
equipment and services to global freight transportation markets.
Greenbrier designs, builds and markets freight railcars and marine
barges in North America.
Greenbrier Europe is an end-to-end
freight railcar manufacturing, engineering and repair business with
operations in Poland and
Romania that serves customers
across Europe and in the nations
of the GCC. Greenbrier builds freight railcars and rail castings in
Brazil through two separate
strategic partnerships. We are a leading provider of wheel
services, parts, railcar management & regulatory compliance
services and leasing services to railroads and related
transportation industries in North America. Greenbrier offers
freight railcar repair, refurbishment and retrofitting services in
North America through a joint
venture partnership with Watco Companies, LLC. Through other
unconsolidated joint ventures, we produce industrial and rail
castings, tank heads and other components. Greenbrier owns a lease
fleet of over 8,000 railcars and performs management services for
353,000 railcars. Learn more about Greenbrier at www.gbrx.com.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995: This press release may contain
forward-looking statements, including any statements that are not
purely statements of historical fact. Greenbrier uses words such as
"anticipates," "believes," "forecast," "potential," "goal,"
"contemplates," "expects," "intends," "plans," "projects," "hopes,"
"seeks," "estimates," "strategy," "could," "would," "should,"
"likely," "will," "may," "can," "designed to," "future,"
"foreseeable future" and similar expressions to identify
forward-looking statements. These forward-looking statements are
not guarantees of future performance and are subject to certain
risks and uncertainties that could cause actual results to differ
materially from the results contemplated by the forward-looking
statements. Factors that might cause such a difference include, but
are not limited to, reported backlog and awards that are not
indicative of Greenbrier's financial results; uncertainty or
changes in the credit markets and financial services industry; high
levels of indebtedness and compliance with the terms of
Greenbrier's indebtedness; write-downs of goodwill, intangibles and
other assets in future periods; sufficient availability of
borrowing capacity; fluctuations in demand for newly manufactured
railcars or failure to obtain orders as anticipated in developing
forecasts; loss of one or more significant customers; customer
payment defaults or related issues; policies and priorities of the
federal government regarding international trade, taxation and
infrastructure; sovereign risk to contracts, exchange rates or
property rights; actual future costs and the availability of
materials and a trained workforce; failure to design or manufacture
new products or technologies or to achieve certification or market
acceptance of new products or technologies; steel or specialty
component price fluctuations and availability and scrap surcharges;
changes in product mix and the mix between segments; labor
disputes, energy shortages or operating difficulties that might
disrupt manufacturing operations or the flow of cargo; production
difficulties and product delivery delays as a result of, among
other matters, costs or inefficiencies associated with expansion,
start-up, or changing of production lines or changes in production
rates, changing technologies, transfer of production between
facilities or non-performance of alliance partners, subcontractors
or suppliers; ability to obtain suitable contracts for the sale of
leased equipment and risks related to car hire and residual values;
integration of current or future acquisitions and establishment of
joint ventures; succession planning; discovery of defects in
railcars or services resulting in increased warranty costs or
litigation; physical damage or product or service liability claims
that exceed Greenbrier's insurance coverage; train derailments or
other accidents or claims that could subject Greenbrier to legal
claims; actions or inactions by various regulatory agencies
including potential environmental remediation obligations or
changing tank car or other railcar or railroad regulation; and
issues arising from investigations of whistleblower complaints; all
as may be discussed in more detail under the headings "Risk
Factors" and "Forward Looking Statements" in Greenbrier's Annual
Report on Form 10-K for the fiscal year ended August 31, 2017 and Greenbrier's other reports on
file with the Securities and Exchange Commission. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which reflect management's opinions only as of the date
hereof. Except as otherwise required by law, Greenbrier does not
assume any obligation to update any forward-looking statements.
THE GREENBRIER
COMPANIES, INC.
|
CONSOLIDATED
BALANCE SHEETS (In thousands, unaudited)
|
|
|
November
30,
2017
|
August 31,
2017
|
May 31,
2017
|
February
28,
2017
|
November
30,
2016
|
Assets
|
|
|
|
|
|
Cash and
cash equivalents
|
$
591,406
|
$
611,466
|
$
465,413
|
$
545,752
|
$
233,790
|
Restricted cash
|
8,839
|
8,892
|
8,753
|
8,696
|
8,642
|
Accounts
receivable, net
|
315,393
|
279,964
|
267,830
|
295,844
|
237,037
|
Inventories
|
411,371
|
400,127
|
414,012
|
381,439
|
402,064
|
Leased
railcars for syndication
|
130,991
|
91,272
|
149,119
|
98,398
|
102,686
|
Equipment on operating leases, net
|
274,598
|
315,941
|
315,976
|
298,269
|
305,586
|
Property, plant and equipment, net
|
426,961
|
428,021
|
330,471
|
325,325
|
327,170
|
Investment in unconsolidated affiliates
|
101,529
|
108,255
|
110,058
|
90,762
|
93,330
|
Intangibles and other assets, net
|
83,819
|
85,177
|
68,930
|
68,228
|
63,780
|
Goodwill
|
67,783
|
68,590
|
43,265
|
43,265
|
43,265
|
|
$
2,412,690
|
$
2,397,705
|
$
2,173,827
|
$
2,155,978
|
$
1,817,350
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Revolving notes
|
$
6,885
|
$
4,324
|
$
-
|
$
-
|
$
-
|
Accounts
payable and accrued liabilities
|
441,373
|
415,061
|
339,001
|
372,321
|
345,776
|
Deferred
income taxes
|
69,984
|
75,791
|
80,482
|
65,589
|
54,123
|
Deferred
revenue
|
120,044
|
129,260
|
82,006
|
85,441
|
85,358
|
Notes
payable, net
|
558,987
|
558,228
|
532,638
|
532,596
|
300,331
|
Contingently
redeemable noncontrolling interest
|
35,209
|
36,148
|
-
|
-
|
-
|
Total
equity - Greenbrier
|
1,032,557
|
1,018,130
|
986,221
|
942,084
|
880,725
|
Noncontrolling interest
|
147,651
|
160,763
|
153,479
|
157,947
|
151,037
|
Total
equity
|
1,180,208
|
1,178,893
|
1,139,700
|
1,100,031
|
1,031,762
|
|
$
2,412,690
|
$
2,397,705
|
$
2,173,827
|
$
2,155,978
|
$
1,817,350
|
THE GREENBRIER
COMPANIES, INC.
|
CONSOLIDATED
STATEMENTS OF INCOME (In thousands, except per share
amounts, unaudited)
|
|
|
Three Months
Ended
November
30,
|
|
|
|
|
2017
|
|
2016
|
|
Revenue
|
|
|
|
|
|
|
Manufacturing
|
|
$
|
451,485
|
|
$
454,033
|
|
Wheels
& Parts
|
|
|
78,011
|
|
69,635
|
|
Leasing
& Services
|
|
|
30,039
|
|
28,646
|
|
|
|
|
559,535
|
|
552,314
|
|
Cost of
revenue
|
|
|
|
|
|
|
Manufacturing
|
|
|
380,850
|
|
356,555
|
|
Wheels
& Parts
|
|
|
72,506
|
|
64,978
|
|
Leasing
& Services
|
|
|
16,865
|
|
18,030
|
|
|
|
|
470,221
|
|
439,563
|
|
|
|
|
|
|
|
|
Margin
|
|
|
89,314
|
|
112,751
|
|
|
|
|
|
|
|
|
Selling and
administrative
|
|
|
47,043
|
|
41,213
|
|
Net gain on
disposition of equipment
|
|
|
(19,171)
|
|
(1,122)
|
|
Earnings from
operations
|
|
|
61,442
|
|
72,660
|
|
|
|
|
|
|
|
|
Other
costs
|
|
|
|
|
|
|
Interest and foreign
exchange
|
|
|
7,020
|
|
1,724
|
|
Earnings before
income tax and loss from unconsolidated affiliates
|
|
|
54,422
|
|
70,936
|
|
Income tax
expense
|
|
|
(18,135)
|
|
(20,386)
|
|
Earnings before loss
from unconsolidated
affiliates
|
|
|
36,287
|
|
50,550
|
|
Loss from
unconsolidated affiliates
|
|
|
(2,910)
|
|
(2,584)
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
33,377
|
|
47,966
|
|
Net earnings
attributable to noncontrolling interest
|
|
|
(7,124)
|
|
(23,004)
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Greenbrier
|
|
$
|
26,253
|
|
$
24,962
|
|
|
|
|
|
|
|
|
Basic earnings per
common share:
|
|
$
|
0.90
|
|
$
0.86
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share:
|
|
$
|
0.83
|
|
$
0.79
|
|
|
|
|
|
|
|
|
Weighted average
common shares:
|
|
|
|
|
|
|
Basic
|
|
|
29,332
|
|
29,097
|
|
Diluted
|
|
|
32,696
|
|
32,412
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
|
0.23
|
|
$
0.21
|
|
THE GREENBRIER
COMPANIES, INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (In thousands,
unaudited)
|
|
|
|
|
Three Months
Ended November
30,
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net earnings
|
|
$
|
33,377
|
|
$
47,966
|
|
Adjustments to reconcile net earnings to net cash
provided by (used in) operating activities:
|
|
|
|
|
|
|
Deferred income taxes
|
|
|
(5,865)
|
|
2,756
|
|
Depreciation and amortization
|
|
|
18,370
|
|
15,595
|
|
Net gain on disposition of equipment
|
|
|
(19,171)
|
|
(1,122)
|
|
Accretion of debt
discount
|
|
|
1,024
|
|
-
|
|
Stock based compensation expense
|
|
|
5,939
|
|
5,343
|
|
Noncontrolling interest adjustments
|
|
|
(875)
|
|
(3,781)
|
|
Other
|
|
|
477
|
|
229
|
|
Decrease (increase) in assets:
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
(35,510)
|
|
(5,256)
|
|
Inventories
|
|
|
(16,311)
|
|
(39,108)
|
|
Leased railcars for syndication
|
|
|
(35,541)
|
|
34,295
|
|
Other
|
|
|
6,304
|
|
8,893
|
|
Increase (decrease) in liabilities:
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
16,676
|
|
(22,873)
|
|
Deferred revenue
|
|
|
(8,548)
|
|
(11,111)
|
|
Net cash provided by (used in) operating activities
|
|
|
(39,654)
|
|
31,826
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Proceeds from sales of assets
|
|
|
75,060
|
|
9,189
|
|
Capital expenditures
|
|
|
(29,893)
|
|
(12,584)
|
|
Decrease in restricted cash
|
|
|
53
|
|
15,637
|
|
Cash
distribution from unconsolidated affiliates
|
|
|
-
|
|
550
|
|
Investment in and advances to unconsolidated affiliates
|
|
|
-
|
|
(550)
|
|
Net cash provided by investing activities
|
|
|
45,220
|
|
12,242
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Net changes in revolving notes with maturities of 90 days or
less
|
|
|
2,561
|
|
-
|
|
Proceeds from issuance of notes payable
|
|
|
2,138
|
|
-
|
|
Repayments of notes payable
|
|
|
(2,809)
|
|
(1,750)
|
|
Investment by joint venture partner
|
|
|
6,500
|
|
-
|
|
Cash distribution to joint venture partner
|
|
|
(26,900)
|
|
(11,185)
|
|
Dividends
|
|
|
(319)
|
|
(6,147)
|
|
Tax payments for net share settlement of restricted
stock
|
|
|
(5,061)
|
|
(2,820)
|
|
Excess tax deficiency from restricted stock awards
|
|
|
-
|
|
(2,464)
|
|
Net cash used in financing activities
|
|
|
(23,890)
|
|
(24,366)
|
|
Effect of exchange rate changes
|
|
|
(1,736)
|
|
(8,591)
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
(20,060)
|
|
11,111
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
Beginning of
period
|
|
|
611,466
|
|
222,679
|
|
End of
period
|
|
$
|
591,406
|
|
$
233,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE GREENBRIER
COMPANIES, INC.
|
SUPPLEMENTAL
INFORMATION
|
(In thousands,
except per share amounts, unaudited)
|
|
Operating Results
by Quarter for 2017 are as follows:
|
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
$
454,033
|
|
$
445,504
|
|
$
317,104
|
|
$
508,547
|
|
$
1,725,188
|
|
Wheels
& Parts
|
69,635
|
|
82,714
|
|
85,231
|
|
75,099
|
|
312,679
|
|
Leasing
& Services
|
28,646
|
|
38,064
|
|
36,826
|
|
27,761
|
|
131,297
|
|
|
552,314
|
|
566,282
|
|
439,161
|
|
611,407
|
|
2,169,164
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
356,555
|
|
346,653
|
|
245,228
|
|
425,531
|
|
1,373,967
|
|
Wheels
& Parts
|
64,978
|
|
75,497
|
|
77,985
|
|
69,876
|
|
288,336
|
|
Leasing
& Services
|
18,030
|
|
25,207
|
|
26,247
|
|
16,078
|
|
85,562
|
|
|
439,563
|
|
447,357
|
|
349,460
|
|
511,485
|
|
1,747,865
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin
|
112,751
|
|
118,925
|
|
89,701
|
|
99,922
|
|
421,299
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expense
|
41,213
|
|
39,495
|
|
42,810
|
|
47,089
|
|
170,607
|
|
Net gain on
disposition of equipment
|
(1,122)
|
|
(2,090)
|
|
(1,581)
|
|
(4,947)
|
|
(9,740)
|
|
Earnings from
operations
|
72,660
|
|
81,520
|
|
48,472
|
|
57,780
|
|
260,432
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
costs
|
|
|
|
|
|
|
|
|
|
|
Interest
and foreign exchange
|
1,724
|
|
5,673
|
|
7,894
|
|
8,901
|
|
24,192
|
|
Earnings before
income tax and earnings (loss) from unconsolidated
affiliates
|
70,936
|
|
75,847
|
|
40,578
|
|
48,879
|
|
236,240
|
|
Income tax
expense
|
(20,386)
|
|
(24,858)
|
|
(8,656)
|
|
(10,114)
|
|
(64,014)
|
|
Earnings before
earnings (loss) from unconsolidated
affiliates
|
50,550
|
|
50,989
|
|
31,922
|
|
38,765
|
|
172,226
|
|
Earnings (loss) from
unconsolidated affiliates
|
(2,584)
|
|
(1,988)
|
|
(681)
|
|
(6,511)
|
|
(11,764)
|
|
Net
earnings
|
47,966
|
|
49,001
|
|
31,241
|
|
32,254
|
|
160,462
|
|
Net earnings
attributable to noncontrolling
interest
|
(23,004)
|
|
(14,465)
|
|
1,582
|
|
(8,508)
|
|
(44,395)
|
|
Net earnings
attributable to Greenbrier
|
$
24,962
|
|
$
34,536
|
|
$
32,823
|
|
$
23,746
|
|
$
116,067
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share (1)
|
$
0.86
|
|
$
1.19
|
|
$
1.12
|
|
$
0.81
|
|
$
3.97
|
|
Diluted earnings
per common share (1)
|
$
0.79
|
|
$
1.09
|
|
$
1.03
|
|
$
0.75
|
|
$
3.65
|
|
|
|
(1)
|
Quarterly amounts do
not total to the year to date amount as each period is calculated
discretely. Diluted earnings per common share excludes the dilutive
effect of the 2024 Convertible Notes, since the average stock price
was less than the applicable conversion price and therefore was
considered anti-dilutive, but includes restricted stock units that
are subject to performance criteria, for which actual levels of
performance above target have been achieved, using the treasury
stock method when dilutive and the dilutive effect of shares
underlying the 2018 Convertible Notes using the "if converted"
method in which debt issuance and interest costs, net of tax, were
added back to net earnings.
|
THE GREENBRIER
COMPANIES, INC.
|
SUPPLEMENTAL
INFORMATION (In thousands,
unaudited)
|
|
Segment
Information
|
|
Three months ended
November 30, 2017:
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Earnings (loss) from
operations
|
|
(In
thousands)
|
External
|
|
Intersegment
|
|
Total
|
|
External
|
|
Intersegment
|
|
Total
|
|
Manufacturing
|
$
451,485
|
|
$
16,804
|
|
$
468,289
|
|
$
52,969
|
|
$
4,186
|
|
$
57,155
|
|
Wheels &
Parts
|
78,011
|
|
7,732
|
|
85,743
|
|
2,418
|
|
748
|
|
3,166
|
|
Leasing &
Services
|
30,039
|
|
1,605
|
|
31,644
|
|
28,190
|
|
1,372
|
|
29,562
|
|
Eliminations
|
-
|
|
(26,141)
|
|
(26,141)
|
|
-
|
|
(6,306)
|
|
(6,306)
|
|
Corporate
|
-
|
|
-
|
|
-
|
|
(22,135)
|
|
-
|
|
(22,135)
|
|
|
$
559,535
|
|
$
-
|
|
$
559,535
|
|
$
61,442
|
|
$
-
|
|
$
61,442
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
August 31, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Earnings (loss) from
operations
|
|
|
External
|
|
Intersegment
|
|
Total
|
|
External
|
|
Intersegment
|
|
Total
|
|
Manufacturing
|
$
508,547
|
|
$
-
|
|
$
508,547
|
|
$
68,723
|
|
$
-
|
|
$
68,723
|
|
Wheels &
Parts
|
75,099
|
|
7,468
|
|
82,567
|
|
2,282
|
|
341
|
|
2,623
|
|
Leasing &
Services
|
27,761
|
|
3,772
|
|
31,533
|
|
7,541
|
|
3,497
|
|
11,038
|
|
Eliminations
|
-
|
|
(11,240)
|
|
(11,240)
|
|
-
|
|
(3,838)
|
|
(3,838)
|
|
Corporate
|
-
|
|
-
|
|
-
|
|
(20,766)
|
|
-
|
|
(20,766)
|
|
|
$
611,407
|
|
$
-
|
|
$
611,407
|
|
$
57,780
|
|
$
-
|
|
$
57,780
|
|
|
|
|
Total
assets
|
|
|
(In
thousands)
|
|
|
November
30,
2017
|
|
August 31,
2017
|
|
|
Manufacturing
|
$
915,918
|
|
$
914,450
|
|
|
Wheels &
Parts
|
262,349
|
|
236,315
|
|
|
Leasing &
Services
|
535,847
|
|
535,323
|
|
|
Unallocated
|
698,576
|
|
711,617
|
|
|
|
$
2,412,690
|
|
$
2,397,705
|
|
|
The results of operations for GBW, which are shown below, are
not reflected in the above tables as the investment is accounted
for under the equity method of accounting.
|
As of and for
the
Three Months
Ended
|
|
|
November 30,
2017
|
|
August 31,
2017
|
|
|
Revenue
|
$
58,000
|
|
$
56,300
|
|
|
Loss from
operations
|
$
(5,700)
|
|
$
(15,400)
|
|
|
Total
assets
|
$
204,300
|
|
$
206,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During the three months ended August 31,
2017, GBW performed an interim goodwill test as sales and
profitability trends declined beyond what was anticipated. As a
result, GBW recorded a pre-tax impairment loss of $11.2 million. GBW is accounted for under the
equity method of accounting, therefore our share of the non-cash
impairment loss recognized by GBW was $3.5
million after-tax ($0.11 per
share) and is included as part of Earnings (loss) from
unconsolidated affiliates on our Consolidated Statement of
Income.
THE GREENBRIER
COMPANIES, INC.
|
SUPPLEMENTAL
INFORMATION (In thousands, excluding backlog and delivery
units, unaudited)
|
|
Reconciliation of
Net earnings to Adjusted EBITDA
|
|
|
|
|
Three Months
Ended
|
|
|
November
30, 2017
|
|
August 31,
2017
|
|
Net
earnings
|
$
33,377
|
|
$
32,254
|
|
Interest and foreign
exchange
|
7,020
|
|
8,901
|
|
Income tax
expense
|
18,135
|
|
10,114
|
|
Depreciation and
amortization
|
18,370
|
|
18,513
|
|
GBW goodwill
impairment
|
-
|
|
3,522
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
76,902
|
|
$
73,304
|
|
|
|
|
Three Months
Ended
November 30,
2017
|
|
Backlog Activity
(units)
|
|
|
|
|
Beginning
backlog
|
28,600
|
|
Orders received
(1)
|
3,200
|
|
Production held as
Leased railcars for syndication
|
(1,400)
|
|
Production sold
directly to third parties (1)
|
(3,900)
|
|
Ending
backlog
|
26,500
|
|
|
|
|
Delivery
Information (units)
|
|
|
Production sold
directly to third parties (1)
|
3,900
|
|
Sales of Leased
railcars for syndication
|
500
|
|
Total
deliveries
|
4,400
|
|
|
|
(1)
|
Includes
Greenbrier-Maxion, our Brazilian railcar manufacturer, which is
accounted for under the equity method
|
THE GREENBRIER
COMPANIES, INC.
|
SUPPLEMENTAL
INFORMATION
|
(In
thousands, except per share amounts, unaudited)
|
|
Reconciliation of
common shares outstanding, adjusted net earnings attributable to
Greenbrier and adjusted diluted earnings per share
|
|
The shares used in
the computation of the Company's basic and diluted earnings per
common share are reconciled as follows:
|
|
Three Months
Ended
|
|
November
30,
2017
|
August 31, 2017
|
Weighted average
basic common shares outstanding (1)
|
29,332
|
29,323
|
Dilutive effect of
convertible notes (2)
|
3,331
|
3,321
|
Dilutive effect of
performance awards (3)
|
33
|
58
|
Weighted average
diluted common shares outstanding
|
32,696
|
32,702
|
|
|
|
(1)
|
Restricted stock
grants and restricted stock units, including some grants subject to
certain performance criteria, are included in weighted average
basic common shares outstanding when the Company is in a net
earnings position.
|
|
|
(2)
|
The dilutive effect
of the 2018 Convertible notes are included in the Weighted average
diluted common shares outstanding as they were considered dilutive
under the "if converted" method as further discussed
below.
|
|
|
(3)
|
Restricted
stock units subject to performance criteria, for which actual
levels of performance above target have been achieved, and are
included in Weighted average diluted shares outstanding when the
company is in a net earnings position.
|
Diluted earnings per share was calculated using the more
dilutive of two approaches. The first approach includes the
dilutive effect of using the treasury stock method, associated with
shares underlying the 2024 Convertible notes and performance based
restricted stock units that are subject to performance criteria,
for which actual levels of performance above target have been
achieved. The second approach supplements the first by including
the "if converted" effect of the 2018 Convertible notes. Under the
"if converted method" debt issuance and interest costs, both net of
tax, associated with the convertible notes are added back to net
earnings and the share count is increased by the shares underlying
the convertible notes. The 2024 Convertible notes are
included in the calculation of both approaches using the treasury
stock method when the average stock price is greater than the
applicable conversion price.
|
Three Months Ended
|
|
November 30,
2017
|
August 31,
2017
|
Net earnings
attributable to Greenbrier
|
$
26,253
|
$
23,746
|
GBW goodwill
impairment
|
N/A
|
3,522
|
Adjusted net earnings
attributable to Greenbrier
|
$
26,253
|
$
27,268
|
|
|
|
Three Months
Ended
|
|
November 30,
2017
|
August 31,
2017
|
Net earnings
attributable to Greenbrier
|
$
26,253
|
$
23,746
|
Add back:
|
|
|
Interest and debt
issuance costs on the 2018 Convertible notes, net of tax
|
733
|
733
|
Earnings before
interest and debt issuance costs on convertible notes
|
$
26,986
|
$
24,479
|
Weighted average
diluted common shares outstanding
|
32,696
|
32,702
|
|
|
|
Diluted earnings per
share
|
$
0.83
|
$
0.75
|
GBW goodwill
impairment(1)
|
N/A
|
0.11
|
Adjusted diluted
earnings per share
|
$
0.83
|
$
0.86
|
|
|
(1)
|
GBW goodwill
impairment of $3.5 million, net of tax, divided by weighted average
diluted common shares outstanding of 32,702 for the three months
ended August 31, 2017.
|
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SOURCE The Greenbrier Companies, Inc. (GBX)