LAKE OSWEGO, Ore., April 7, 2015 /PRNewswire/ -- The Greenbrier
Companies, Inc. (NYSE: GBX) today reported financial results for
its second fiscal quarter ended February 28,
2015.
Second Quarter Highlights
- Net earnings attributable to Greenbrier for the quarter were
$50.4 million, or $1.57 per diluted share, on revenue of
$630 million.
- Adjusted EBITDA for the quarter was $102.7 million, or 16.3% of revenue.
- New railcar backlog as of February 28,
2015 was 46,000 units with an estimated value of
$4.78 billion (average unit sale
price of $104,000), compared to
41,200 units with an estimated value of $4.20 billion (average unit sale price of
$102,000) as of November 30, 2014.
- Diversified orders for 10,100 new railcars valued at
$1.09 billion were received during
the quarter.
- New railcar deliveries totaled 5,200 units for the quarter,
compared to 4,000 units for the quarter ended November 30, 2014.
- Marine backlog as of February 28,
2015 was approximately $80
million.
- Board declares a quarterly dividend of $0.15 per share payable on May 6, 2015 to shareholders of record as of
April 15, 2015.
- Repurchased 483,983 shares of common stock at a cost of
$23.8 million during the quarter.
Cumulative repurchases from October
31, 2013 through February 28,
2015 aggregate 1,627,224 shares at a cost of $81.4 million, or an average price of
$49.99 per share. We have
$43.6 million available under our
share repurchase program.
Progress on Longer Term Financial Goals
- Aggregate gross margin expanded to 19.9%, compared to 17.8% in
the prior quarter, nearly reaching the goal of at least 20% gross
margin by the second half of fiscal 2016. As a reminder, while
gross margins continued to increase, management does not expect
this track to be linear.
- We remain on track to reach the goal of at least 25% ROIC by
the second half of fiscal 2016. Annualized ROIC of 19.6%
reflects record operating results tempered by working capital needs
associated with higher production and syndication volumes, and
planned capital expenditure programs.
William A. Furman, Chairman and
CEO, said, "Our record results this quarter, including margin
expansion and earnings growth, reflect the soundness of our
diversified and integrated business model, improved business
execution and greater scale. Our aggregate gross margin
in the second quarter grew to 19.9%, nearly twice last year's
level; at the same time we continue to execute on ramping up
production on new manufacturing lines."
"Our diverse new railcar backlog of 46,000 units represents the
sixth consecutive quarter where the quantity and value of our
backlog has increased. It is now more than triple the size of
just one year ago, with production on certain production lines
stretching into 2019. Nearly 80% of our year-to-date orders
for 24,200 railcars are non-energy related, including orders for
double stack intermodal cars, grain hopper cars, automotive
carrying cars, non-energy related tank cars, boxcars, and mill
gondola cars for scrap steel. These orders, along with others in
our backlog, include multi-year orders for various car types, a
positive indication that our customers believe, as do we, that
end-user demand for new railcars will remain solid for the
foreseeable future. The regulatory picture for tank cars
transporting hazardous materials should be clarified no later than
May. We expect Greenbrier's Tank Car of the Future will be the new
standard, and that additional new car and retrofit orders will
occur regardless of oil prices," Furman continued.
Furman concluded, "Our strong order book, which includes several
core leasing company partners, provides us good visibility through
fiscal 2016 and beyond. If the strong new railcar cycle
continues to play out over the next 3-4 years, as many forecast it
will, then Greenbrier should be well positioned to generate
significant free cash flow. We will continue to take a
balanced approach to reinvesting in high rate of return projects in
our core business, seeking acquisitions in our core competencies,
and returning capital to shareholders."
Transaction Update
We anticipate our 20% equity
investment in Brazil's
Amsted-Maxion Hortolândia, the leading railcar manufacturer in
South America, will close during
the third quarter.
Business Outlook
Based on current business trends and
industry forecasts, Greenbrier has raised its guidance to:
- Deliveries in FY15 of about 21,500 units
- Revenue of approximately $2.6 to $2.7
billion, which excludes revenue from GBW as it is accounted
for under the equity method of accounting
- Diluted EPS in the range of $5.65
to $5.95
- Adjusted EBITDA in the range of $420 to
$435 million
Similar to previous years, financial results in the second half
of the year are expected to be stronger than the first half.
Also, while gross margins continue to increase overall,
management does not believe this track will be linear.
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
|
Q2
FY15
|
Q1
FY15
|
Sequential
Comparison – Main Drivers
|
|
Revenue
|
$630.1M
|
$495.1M
|
Up 27.3% primarily
due to increased deliveries
|
|
Gross
margin
|
19.9%
|
17.8%
|
Up 210 bps due to
higher deliveries, favorable product mix and pricing, and improved
production efficiencies
|
|
Selling
and
administrative
expense
|
$32.9M
|
$33.7M
|
Down 2.4% primarily
due to higher professional fees in Q1
|
|
Gain on
disposition
of
equipment
|
$0.1M
|
$0.1M
|
Timing of sales
fluctuates and is opportunistic, typically may range from $1.0M to
$3.0M per quarter
|
|
Adjusted
EBITDA
|
$102.7M
|
$67.2M
|
Up 52.8% driven by
higher deliveries and margins
|
|
Effective tax
rate
|
32.4%
|
31.3%
|
Reflects geographic
mix of earnings
|
|
Net
earnings
|
$50.4M
|
$32.8M
|
|
|
Diluted
EPS
|
$1.57
|
$1.01
|
|
Segment Summary
|
Q2
FY15
|
Q1
FY15
|
Sequential
Comparison – Main Drivers
|
|
Manufacturing
|
|
Revenue
|
$505.2M
|
$379.9M
|
Up 33.0% primarily
due to higher deliveries
|
|
Gross
margin
|
20.2%
|
16.8%
|
Up 340 bps due to
favorable product mix and pricing, improved efficiencies and
weakening Peso
|
|
Operating
margin (1)
|
18.0%
|
13.7%
|
|
|
Deliveries
|
5,200
|
4,000
|
|
|
Wheels &
Parts
|
|
Revenue
|
$102.6M
|
$86.6M
|
Up 18.5% primarily
attributable to higher volume and product mix
|
|
Gross
margin
|
9.6%
|
11.3%
|
Down 170 bps
primarily due to reduced price of scrap steel
|
|
Operating
margin (1)
|
7.8%
|
9.2%
|
|
|
Leasing &
Services
|
|
Revenue
|
$22.3M
|
$28.5M
|
Q1 includes
syndication of third party produced railcars
|
|
Gross
margin
|
60.3%
|
50.6%
|
Up 970 bps due to
lower margin syndication of third party produced railcars in Q1,
and higher margin interim rents on leased railcars for syndication
in Q2
|
|
Operating
margin (1) (2)
|
44.1%
|
38.8%
|
|
|
Lease fleet
utilization
|
99.5%
|
98.1%
|
|
|
|
(1) See
supplemental segment information on page 11 for additional
information.
|
|
(2)
Includes Net gain on disposition of equipment, which is excluded
from gross margin.
|
Conference Call
Greenbrier will host a teleconference
to discuss its second quarter 2015 results. In conjunction with
this news release, Greenbrier has posted a supplemental earnings
presentation to our website. Teleconference details are as
follows:
- April 7, 2015
- 8:00 a.m. Pacific Daylight
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 Companies
Greenbrier, (www.gbrx.com),
headquartered in Lake Oswego,
Oregon, is a leading supplier of transportation equipment
and services to the railroad industry. We build new railroad
freight cars in our 4 manufacturing facilities in the U.S. and
Mexico and marine barges at our
U.S. manufacturing facility. Greenbrier also sells
reconditioned wheel sets and provides wheel services at 9 locations
throughout the U.S. We recondition, manufacture and sell
railcar parts at 4 U.S. sites. Greenbrier is a 50/50 joint
venture partner with Watco Companies, LLC in GBW Railcar Services,
LLC which repairs and refurbishes freight cars at 39 locations
across North America, including 14
tank car repair and maintenance facilities certified by the
Association of American Railroads. Greenbrier builds new railroad
freight cars and refurbishes freight cars for the European market
through our operations in Poland.
Greenbrier owns approximately 8,300 railcars, and performs
management services for approximately 241,000 railcars.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995: This press release may contain
forward-looking statements, including statements regarding expected
new railcar production volumes and schedules, expected customer
demand for the Company's products and services, plans to increase
manufacturing capacity, restructuring plans, new railcar delivery
volumes and schedules, growth in demand for the Company's railcar
services and parts business, and the Company's future financial
performance. 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 in 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 are
not indicative of our financial results; uncertainty or changes in
the credit markets and financial services industry; high levels of
indebtedness and compliance with the terms of our 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; 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, inefficiencies associated with expansion or start-up
of production lines or increased 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 our insurance coverage; train derailments or other
accidents or claims that could subject us to legal claims; actions
or inactions by various regulatory agencies including potential
environmental remediation obligations or changing tank car or other
rail car 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 our Annual Report on Form 10-K for the
fiscal year ended August 31, 2014,
and our 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, we do not assume any obligation to update any
forward-looking statements.
Adjusted EBITDA is not a financial measure under generally
accepted accounting principles (GAAP). We define
Adjusted EBITDA as Net earnings before Interest and foreign
exchange, Income tax expense, Depreciation and amortization.
Adjusted EBITDA is a performance measurement tool commonly used by
rail supply companies and Greenbrier. You should not consider
Adjusted EBITDA in isolation or as a substitute for other financial
statement data determined in accordance with GAAP. In
addition, because Adjusted EBITDA is not a measure of financial
performance under GAAP and is susceptible to varying calculations,
this measure presented may differ from and may not be comparable to
similarly titled measures used by other companies.
Annualized ROIC is calculated by taking year to date Earnings
from operations, less cash paid for income taxes, net, which is
then annualized and divided by the average balance of the sum of
the Revolving notes, plus Notes payable, plus Total equity, less
cash in excess of $40 million.
The average is calculated based on the quarterly ending
balances.
|
THE GREENBRIER
COMPANIES, INC.
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(In thousands,
unaudited)
|
|
|
|
|
|
|
|
February 28, 2015
|
November 30,
2014
|
August 31,
2014
|
May 31,
2014
|
February 28,
2014
|
|
Assets
|
|
|
|
|
|
|
Cash and
cash equivalents
|
$ 145,512
|
$ 118,958
|
$ 184,916
|
$ 198,492
|
$ 143,929
|
|
Restricted cash
|
8,722
|
9,170
|
20,140
|
9,468
|
8,964
|
|
Accounts
receivable, net
|
207,488
|
191,532
|
199,679
|
181,850
|
148,810
|
|
Inventories
|
418,590
|
372,039
|
305,656
|
337,197
|
306,394
|
|
Leased
railcars for syndication
|
198,010
|
177,221
|
125,850
|
96,332
|
84,657
|
|
Equipment on operating leases, net
|
261,234
|
264,615
|
258,848
|
274,863
|
282,328
|
|
Property, plant and equipment, net
|
271,977
|
258,303
|
243,698
|
215,942
|
204,804
|
|
Investment in unconsolidated affiliates
|
71,225
|
72,342
|
69,359
|
12,129
|
11,753
|
|
Goodwill
|
43,265
|
43,265
|
43,265
|
57,416
|
57,416
|
|
Intangibles and other assets, net
|
64,386
|
61,937
|
65,757
|
66,883
|
65,420
|
|
$ 1,690,409
|
$ 1,569,382
|
$ 1,517,168
|
$ 1,450,572
|
$ 1,314,475
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Revolving notes
|
$ 90,563
|
$ 46,527
|
$ 13,081
|
$
18,082
|
$ 26,738
|
|
Accounts
payable and accrued liabilities
|
417,844
|
374,509
|
383,289
|
356,541
|
319,611
|
|
Deferred
income taxes
|
77,632
|
81,808
|
81,383
|
79,526
|
84,848
|
|
Deferred
revenue
|
28,287
|
27,067
|
20,603
|
21,153
|
14,272
|
|
Notes
payable
|
441,326
|
443,303
|
445,091
|
447,068
|
371,427
|
|
|
|
|
|
|
|
Total
equity - Greenbrier
|
541,491
|
519,884
|
511,390
|
476,145
|
456,569
|
|
Noncontrolling interest
|
93,266
|
76,284
|
62,331
|
52,057
|
41,010
|
|
Total
equity
|
634,757
|
596,168
|
573,721
|
528,202
|
497,579
|
|
$ 1,690,409
|
$ 1,569,382
|
$ 1,517,168
|
$ 1,450,572
|
$ 1,314,475
|
|
THE GREENBRIER
COMPANIES, INC.
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
(In thousands,
except per share amounts, unaudited)
|
|
|
|
|
Three Months
Ended
February
28,
|
Six Months
Ended
February
28,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
$
505,241
|
|
$
347,755
|
|
$ 885,190
|
|
$ 707,228
|
|
|
Wheels
& Parts
|
102,640
|
|
136,540
|
|
189,264
|
|
249,941
|
|
|
Leasing
& Services
|
22,268
|
|
17,921
|
|
50,753
|
|
35,402
|
|
|
630,149
|
|
502,216
|
|
1,125,207
|
|
992,571
|
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
403,227
|
|
306,572
|
|
719,264
|
|
618,012
|
|
|
Wheels
& Parts
|
92,768
|
|
127,940
|
|
169,640
|
|
235,915
|
|
|
Leasing
& Services
|
8,844
|
|
9,853
|
|
22,925
|
|
19,234
|
|
|
504,839
|
|
444,365
|
|
911,829
|
|
873,161
|
|
|
|
|
|
|
|
|
|
|
|
Margin
|
125,310
|
|
57,851
|
|
213,378
|
|
119,410
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expense
|
32,899
|
|
28,125
|
|
66,628
|
|
54,234
|
|
|
Net gain on
disposition of equipment
|
(121)
|
|
(5,416)
|
|
(204)
|
|
(9,067)
|
|
|
Restructuring
charges
|
-
|
|
540
|
|
-
|
|
1,419
|
|
|
Earnings from
operations
|
92,532
|
|
34,602
|
|
146,954
|
|
72,824
|
|
|
|
|
|
|
|
|
|
|
|
Other
costs
|
|
|
|
|
|
|
|
|
|
Interest
and foreign exchange
|
1,929
|
|
4,099
|
|
5,070
|
|
8,843
|
|
|
Earnings before
income tax and earnings (loss) from unconsolidated affiliates
|
90,603
|
|
30,503
|
|
141,884
|
|
63,981
|
|
|
Income tax
expense
|
(29,372)
|
|
(9,883)
|
|
(45,426)
|
|
(20,405)
|
|
|
Earnings before
earnings (loss) from unconsolidated affiliates
|
61,231
|
|
20,620
|
|
96,458
|
|
43,576
|
|
|
Earnings (loss) from
unconsolidated affiliates
|
(185)
|
|
(67)
|
|
570
|
|
(26)
|
|
|
Net
earnings
|
61,046
|
|
20,553
|
|
97,028
|
|
43,550
|
|
|
Net earnings
attributable to noncontrolling interest
|
(10,695)
|
|
(4,966)
|
|
(13,891)
|
|
(12,575)
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Greenbrier
|
$
50,351
|
|
$
15,587
|
|
$ 83,137
|
|
$ 30,975
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share:
|
$
1.86
|
|
$
0.55
|
|
$
3.04
|
|
$
1.09
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share:
|
$
1.57
|
|
$
0.50
|
|
$
2.57
|
|
$
0.98
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
27,028
|
|
28,300
|
|
27,348
|
|
28,359
|
|
|
Diluted
|
33,073
|
|
34,345
|
|
33,395
|
|
34,404
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share:
|
$
0.15
|
|
$
-
|
|
$
0.30
|
|
$
-
|
|
|
THE GREENBRIER
COMPANIES, INC.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(In thousands,
unaudited)
|
|
Six Months
Ended February
28,
|
|
|
2015
|
|
2014
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net
earnings
|
$
|
97,028
|
$
|
43,550
|
|
|
Adjustments to reconcile net earnings to net cash provided
by
(used in) operating
activities:
|
|
|
|
|
|
|
Deferred income
taxes
|
|
(3,245)
|
|
(1,448)
|
|
|
Depreciation
and amortization
|
|
22,398
|
|
20,753
|
|
|
Net gain on
disposition of equipment
|
|
(204)
|
|
(9,067)
|
|
|
Stock based
compensation expense
|
|
7,193
|
|
2,862
|
|
|
Noncontrolling
interest adjustments
|
|
21,824
|
|
2,439
|
|
|
Other
|
|
549
|
|
329
|
|
|
Decrease (increase) in
assets:
|
|
|
|
|
|
|
Accounts receivable, net
|
|
(6,256)
|
|
6,900
|
|
|
Inventories
|
|
(116,432)
|
|
9,147
|
|
|
Leased railcars for syndication
|
|
(75,564)
|
|
(13,603)
|
|
|
Other
|
|
(355)
|
|
68
|
|
|
Increase (decrease) in
liabilities:
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
37,521
|
|
(487)
|
|
|
Deferred revenue
|
|
7,750
|
|
5,377
|
|
|
Net cash provided by
(used in) operating activities
|
|
(7,793)
|
|
66,820
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Proceeds
from sales of assets
|
|
3,019
|
|
28,671
|
|
|
Capital
expenditures
|
|
(53,856)
|
|
(16,529)
|
|
|
Investment in and advances to unconsolidated affiliates
|
|
(5,715)
|
|
(1,253)
|
|
|
Decrease
(increase) in restricted cash
|
|
418
|
|
(157)
|
|
|
Other
|
|
467
|
|
-
|
|
|
Net cash
provided by (used in) investing activities
|
|
(55,667)
|
|
10,732
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Net
change in revolving notes with maturities of 90 days or
less
|
|
53,000
|
|
-
|
|
|
Proceeds
from revolving notes with maturities longer than 90 days
|
|
42,563
|
|
31,738
|
|
|
Repayments of revolving notes with maturities longer than 90
days
|
|
(18,081)
|
|
(53,209)
|
|
|
Repayments of notes payable
|
|
(3,740)
|
|
(2,462)
|
|
|
Decrease
in restricted cash
|
|
11,000
|
|
-
|
|
|
Repurchase of stock
|
|
(46,946)
|
|
(8,889)
|
|
|
Dividends
|
|
(8,016)
|
|
-
|
|
|
Investment by joint venture partner
|
|
-
|
|
419
|
|
|
Cash
distribution to joint venture partner
|
|
(4,422)
|
|
(1,604)
|
|
|
Excess
tax benefit from restricted stock awards
|
|
3,858
|
|
110
|
|
|
Net cash
provided by (used in) financing activities
|
|
29,216
|
|
(33,897)
|
|
|
Effect of exchange
rate changes
|
|
(5,160)
|
|
2,839
|
|
|
Increase (decrease)
in cash and cash equivalents
|
|
(39,404)
|
|
46,494
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
Beginning of period
|
|
184,916
|
|
97,435
|
|
|
End of
period
|
$
|
145,512
|
$
|
143,929
|
|
|
THE GREENBRIER
COMPANIES, INC.
|
|
SUPPLEMENTAL
INFORMATION
|
|
(In
thousands, except per share amounts, unaudited)
|
|
|
Operating Results
by Quarter for 2015 are as follows:
|
|
|
|
|
|
|
|
|
First
|
|
Second
|
|
Total
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
Manufacturing
|
$ 379,949
|
|
$ 505,241
|
|
$
885,190
|
|
|
Wheels
& Parts
|
86,624
|
|
102,640
|
|
189,264
|
|
|
Leasing
& Services
|
28,485
|
|
22,268
|
|
50,753
|
|
|
495,058
|
|
630,149
|
|
1,125,207
|
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
Manufacturing
|
316,037
|
|
403,227
|
|
719,264
|
|
|
Wheels
& Parts
|
76,872
|
|
92,768
|
|
169,640
|
|
|
Leasing
& Services
|
14,081
|
|
8,844
|
|
22,925
|
|
|
406,990
|
|
504,839
|
|
911,829
|
|
|
|
|
|
|
|
|
|
Margin
|
88,068
|
|
125,310
|
|
213,378
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expense
|
33,729
|
|
32,899
|
|
66,628
|
|
|
Net gain on
disposition of equipment
|
(83)
|
|
(121)
|
|
(204)
|
|
|
Earnings from
operations
|
54,422
|
|
92,532
|
|
146,954
|
|
|
|
|
|
|
|
|
|
Other
costs
|
|
|
|
|
|
|
|
Interest
and foreign exchange
|
3,141
|
|
1,929
|
|
5,070
|
|
|
Earnings before
income tax and earnings (loss)
from unconsolidated
affiliates
|
51,281
|
|
90,603
|
|
141,884
|
|
|
Income tax
expense
|
(16,054)
|
|
(29,372)
|
|
(45,426)
|
|
|
Earnings before
earnings (loss) from unconsolidated affiliates
|
35,227
|
|
61,231
|
|
96,458
|
|
|
Earnings (loss) from
unconsolidated affiliates
|
755
|
|
(185)
|
|
570
|
|
|
Net
earnings
|
35,982
|
|
61,046
|
|
97,028
|
|
|
Net earnings
attributable to noncontrolling
interest
|
(3,196)
|
|
(10,695)
|
|
(13,891)
|
|
|
Net earnings
attributable to Greenbrier
|
$ 32,786
|
|
$ 50,351
|
|
$
83,137
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share (1)
|
$
1.19
|
|
$
1.86
|
|
$
3.04
|
|
|
Diluted earnings
per common share (1)
|
$
1.01
|
|
$
1.57
|
|
$
2.57
|
|
|
(1)
|
Quarterly amounts do
not total to the year to date amount as each period is calculated
discretely. Diluted earnings per common share includes the dilutive
effect of the 2026 Convertible Notes 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,
except per share amounts, unaudited)
|
|
|
Operating Results
by Quarter for 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
$
359,473
|
|
$ 347,755
|
|
$ 425,583
|
|
$ 492,105
|
|
$ 1,624,916
|
|
|
Wheels
& Parts (1)
|
113,401
|
|
136,540
|
|
140,663
|
|
105,023
|
|
495,627
|
|
|
Leasing
& Services
|
17,481
|
|
17,921
|
|
27,039
|
|
20,978
|
|
83,419
|
|
|
490,355
|
|
502,216
|
|
593,285
|
|
618,106
|
|
2,203,962
|
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
311,440
|
|
306,572
|
|
351,829
|
|
404,167
|
|
1,374,008
|
|
|
Wheels
& Parts (1)
|
107,975
|
|
127,940
|
|
129,825
|
|
98,198
|
|
463,938
|
|
|
Leasing
& Services
|
9,381
|
|
9,853
|
|
14,856
|
|
9,706
|
|
43,796
|
|
|
428,796
|
|
444,365
|
|
496,510
|
|
512,071
|
|
1,881,742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin
|
61,559
|
|
57,851
|
|
96,775
|
|
106,035
|
|
322,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expense
|
26,109
|
|
28,125
|
|
34,800
|
|
36,236
|
|
125,270
|
|
|
Net gain on
disposition of equipment
|
(3,651)
|
|
(5,416)
|
|
(5,619)
|
|
(353)
|
|
(15,039)
|
|
|
Restructuring
charges
|
879
|
|
540
|
|
56
|
|
-
|
|
1,475
|
|
|
Gain on contribution
to joint venture
|
-
|
|
-
|
|
-
|
|
(29,006)
|
|
(29,006)
|
|
|
Earnings from
operations
|
38,222
|
|
34,602
|
|
67,538
|
|
99,158
|
|
239,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
costs
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and foreign exchange
|
4,744
|
|
4,099
|
|
5,437
|
|
4,415
|
|
18,695
|
|
|
Earnings before
income tax and
earnings
(loss) from unconsolidated affiliates
|
33,478
|
|
30,503
|
|
62,101
|
|
94,743
|
|
220,825
|
|
|
Income tax
expense
|
(10,522)
|
|
(9,883)
|
|
(16,303)
|
|
(35,693)
|
|
(72,401)
|
|
|
Earnings before
earnings (loss) from
unconsolidated affiliates
|
22,956
|
|
20,620
|
|
45,798
|
|
59,050
|
|
148,424
|
|
|
Earnings (loss) from
unconsolidated affiliates
|
41
|
|
(67)
|
|
298
|
|
1,083
|
|
1,355
|
|
|
Net
earnings
|
22,997
|
|
20,553
|
|
46,096
|
|
60,133
|
|
149,779
|
|
|
Net earnings
attributable to
noncontrolling interest
|
(7,609)
|
|
(4,966)
|
|
(12,508)
|
|
(12,777)
|
|
(37,860)
|
|
|
Net earnings
attributable to Greenbrier
|
$ 15,388
|
|
$ 15,587
|
|
$ 33,588
|
|
$
47,356
|
|
$ 111,919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share (2)
|
$
0.54
|
|
$ 0.55
|
|
$ 1.20
|
|
$
1.69
|
|
$
3.97
|
|
|
Diluted earnings
per common share (2)
|
$
0.49
|
|
$ 0.50
|
|
$ 1.03
|
|
$
1.43
|
|
$
3.44
|
|
|
|
|
(1)
|
Wheels & Parts
(previously known as Wheels, Repair & Parts) included our
repair operations through July 18, 2014, at which time we and
Watco, our joint venture partner, contributed our respective repair
operations to GBW, an unconsolidated 50/50 joint venture.
After July 18, 2014, the results of GBW are included in Earnings
(loss) from unconsolidated affiliates as we account for our
interest in GBW under the equity method of accounting.
|
|
|
|
(2)
|
Quarterly amounts do
not total to the year to date amount as each period is calculated
discretely. Diluted earnings per common share includes the dilutive
effect of the 2026 Convertible Notes 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
February 28, 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Earnings (loss) from
operations
|
|
|
External
|
|
Intersegment
|
|
Total
|
|
External
|
|
Intersegment
|
|
Total
|
|
|
Manufacturing
|
$
505,241
|
|
$
81
|
|
$
505,322
|
|
$
90,876
|
|
$
9
|
|
$ 90,885
|
|
|
Wheels &
Parts
|
102,640
|
|
5,934
|
|
108,574
|
|
7,976
|
|
653
|
|
8,629
|
|
|
Leasing &
Services
|
22,268
|
|
18,627
|
|
40,895
|
|
9,811
|
|
18,627
|
|
28,438
|
|
|
Eliminations
|
-
|
|
(24,642)
|
|
(24,642)
|
|
-
|
|
(19,289)
|
|
(19,289)
|
|
|
Corporate
|
-
|
|
-
|
|
-
|
|
(16,131)
|
|
-
|
|
(16,131)
|
|
|
$
630,149
|
|
$
-
|
|
$
630,149
|
|
$
92,532
|
|
$
-
|
|
$ 92,532
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
November 30, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Earnings (loss) from
operations
|
|
|
External
|
|
Intersegment
|
|
Total
|
|
External
|
|
Intersegment
|
|
Total
|
|
|
Manufacturing
|
$
379,949
|
|
$
7,420
|
|
$
387,369
|
|
$
52,051
|
|
$
786
|
|
$ 52,837
|
|
|
Wheels &
Parts
|
86,624
|
|
6,911
|
|
93,535
|
|
7,932
|
|
784
|
|
8,716
|
|
|
Leasing &
Services
|
28,485
|
|
13,184
|
|
41,669
|
|
11,042
|
|
13,184
|
|
24,226
|
|
|
Eliminations
|
-
|
|
(27,515)
|
|
(27,515)
|
|
-
|
|
(14,754)
|
|
(14,754)
|
|
|
Corporate
|
-
|
|
-
|
|
-
|
|
(16,603)
|
|
-
|
|
(16,603)
|
|
|
$
495,058
|
|
$
-
|
|
$
495,058
|
|
$
54,422
|
|
$
-
|
|
$ 54,422
|
|
|
|
|
|
Total
assets
|
|
|
February
28,
|
|
November
30
|
|
|
2015
|
|
2014
|
|
|
Manufacturing
|
$
663,567
|
|
$
585,240
|
|
|
Wheels &
Parts
|
291,358
|
|
301,300
|
|
|
Leasing &
Services
|
516,835
|
|
493,048
|
|
|
Unallocated
|
218,649
|
|
189,794
|
|
|
$ 1,690,409
|
|
$
1,569,382
|
|
|
|
|
|
|
|
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
|
|
|
February
28,
2015
|
|
November
30,
2014
|
|
Revenue
|
$
83,300
|
|
$
82,500
|
|
Earnings (loss) from
operations
|
$
(2,000)
|
|
$
300
|
|
Total
assets
|
$
217,400
|
|
$
231,300
|
|
|
|
|
|
|
|
|
|
|
|
THE GREENBRIER
COMPANIES, INC.
|
|
SUPPLEMENTAL
INFORMATION
|
|
(In thousands,
excluding backlog and delivery units, unaudited)
|
|
|
Reconciliation of
Net earnings to Adjusted EBITDA
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
February 28,
2015
|
|
November 30,
2014
|
|
|
|
Net
earnings
|
$
61,046
|
|
$
35,982
|
|
|
|
Interest and foreign
exchange
|
1,929
|
|
3,141
|
|
|
|
Income tax
expense
|
29,372
|
|
16,054
|
|
|
|
Depreciation and
amortization
|
10,348
|
|
12,050
|
|
|
|
Adjusted
EBITDA
|
$
102,695
|
|
$
67,227
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA is
not a financial measure under generally accepted accounting
principles (GAAP). We define Adjusted EBITDA as Net earnings
before interest and foreign exchange, income tax expense,
depreciation and amortization. Adjusted EBITDA is a
performance measurement tool commonly used by rail supply companies
and Greenbrier. You should not consider Adjusted EBITDA in
isolation or as a substitute for other financial statement data
determined in accordance with GAAP. In addition, because
Adjusted EBITDA is not a measure of financial performance under
GAAP and is susceptible to varying calculations, the Adjusted
EBITDA measure presented may differ from and may not be comparable
to similarly titled measures used by other companies.
|
|
|
|
|
Three Months
Ended
February 28,
2015
|
|
|
Backlog Activity
(units)
|
|
|
|
|
|
Beginning
backlog
|
41,200
|
|
|
Orders
received
|
10,100
|
|
|
Production held as
Leased railcars for syndication
|
(1,800)
|
|
|
Production sold
directly to third parties
|
(3,500)
|
|
|
Ending
backlog
|
46,000
|
|
|
|
|
|
Delivery
Information (units)
|
|
|
|
Production sold
directly to third parties
|
3,500
|
|
|
Sales of Leased
railcars for syndication
|
1,700
|
|
|
Total
deliveries
|
5,200
|
|
|
THE GREENBRIER
COMPANIES, INC.
|
|
SUPPLEMENTAL
INFORMATION
|
|
(In thousands,
except per share amounts, unaudited)
|
|
|
Reconciliation of
common shares outstanding and 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
|
|
|
February
28,
2015
|
|
November
30,
2014
|
|
Weighted average
basic common shares outstanding (1)
|
27,028
|
|
27,665
|
|
Dilutive effect of
convertible notes (2)
|
6,045
|
|
6,048
|
|
Weighted average
diluted common shares outstanding
|
33,073
|
|
33,713
|
|
|
|
|
|
|
(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. The
dilutive effect of the 2026 Convertible notes are included in the
Weighted average diluted common shares outstanding as the average
stock price during the period exceeded the conversion price of
$48.05.
|
Diluted earnings per share was calculated using the more
dilutive of two approaches. The first approach includes the
dilutive effect of outstanding warrants and shares underlying the
2026 Convertible notes in the share count using the treasury stock
method. The second approach supplements the first by including the
"if converted" effect of the 2018 Convertible notes issued in
March 2011. 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.
|
Three Months
Ended
|
|
|
February
28,
2015
|
|
November
30,
2014
|
|
|
Net earnings
attributable to Greenbrier
|
$
50,351
|
|
$
32,786
|
|
|
Add back:
|
|
|
|
|
|
Interest and debt
issuance costs on the 2018 Convertible notes, net of tax
|
1,416
|
|
1,416
|
|
|
Earnings before
interest and debt issuance costs on convertible notes
|
$
51,767
|
|
$
34,202
|
|
|
Weighted average
diluted common shares outstanding
|
33,073
|
|
33,713
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
1.57
|
|
$
1.01
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/greenbrier-reports-record-second-quarter-results-with-continued-margin-expansion-300061809.html
SOURCE The Greenbrier Companies, Inc. (GBX)