LAKE OSWEGO, Ore., Jan. 7, 2016 /PRNewswire/ -- The Greenbrier
Companies, Inc. (NYSE: GBX) today reported financial results for
its first fiscal quarter ended November 30,
2015.
First Quarter Highlights
- Net earnings attributable to Greenbrier for the quarter were a
record $69.4 million, or $2.15 per diluted share, on record revenue of
$802.4 million.
- Adjusted EBITDA for the quarter was a record $161.8 million, or 20.2% of revenue.
- New railcar backlog as of November 30,
2015 was 36,000 units with an estimated value of
$4.14 billion (average unit sale
price of $115,000), compared to
41,300 units with an estimated value of $4.71 billion (average unit sale price of
$114,000) as of August 31, 2015.
- Diversified orders for 500 new railcars were received during
the quarter. After quarter end, Greenbrier received orders for an
additional 2,100 railcars, of which 1,300 units were disclosed in
our order release on December 15,
2015. The aggregate value of the cumulative orders for
2,600 new railcars is nearly $250
million, or an average sales price of approximately
$96,000 per railcar.
- New railcar deliveries totaled 6,900 units for the quarter,
compared to 6,200 units for the quarter ended August 31, 2015.
- Marine backlog as of November 30,
2015 was approximately $36
million.
- Board declares a quarterly dividend of $0.20 per share payable on February 10, 2016 to shareholders of record as of
January 20, 2016.
- Repurchased 521,626 shares of common stock at a cost of
$19.1 million during the quarter.
Since inception of the share repurchase program in
October 2013, 2,673,165 shares have
been repurchased at a cost of $123.7
million. Board authorization for approximately
$101.3 million remains available for
further share repurchases.
Progress on Longer Term Financial Goals
- Aggregate gross margin expanded to 23.0%, compared
to 22.8% in the prior quarter, continuing above the goal of at
least 20% gross margin by the second half of fiscal 2016.
- First quarter annualized ROIC of 34.0% reflects record
operating results. We remain on track to reach the goal of at least
25% ROIC for the second half of fiscal 2016.
William A. Furman, Chairman and
CEO said, "Greenbrier's first quarter results are the fourth
consecutive quarter we have produced record-breaking performance.
This accomplishment is a testament to the value of our integrated
business model and our strategy to diversify our product offerings,
create efficient, flexible manufacturing capacity in low-cost
facilities and drive more value through our lease syndication
model. Aggregate gross margin hit an all-time high of 23.0%, up 520
bps year-over-year, with our manufacturing and lease syndication
activities continuing to lead the way."
Furman added, "We anticipate and are prepared for market
conditions in which order and backlog levels will likely come down
from their elevated energy-driven peak. We see positive continuing
demand for a range of non-energy related railcars including
automotive carrying railcars, large cube covered hoppers,
non-energy tank cars and boxcars. We believe our strong backlog,
geographic diversity and manufacturing flexibility will lead to
another solid year of earnings and free cash flow in fiscal
2016."
Furman concluded, "While the markets where we compete may
transition over the course of this year and into 2017, we have
built a solid foundation for Greenbrier's future growth. Now
serving customers on four continents, we are further diversifying
our revenue base by growing our business outside North America. Greenbrier is a much different
company today than it was just a couple of years ago. I strongly
believe that Greenbrier has a great future ahead."
Business Outlook
Based on current business trends,
industry forecasts and production schedules for fiscal 2016,
Greenbrier reaffirms previously provided guidance for:
- Deliveries of approximately 20,000 – 22,500 units
- Revenue will exceed $2.8
billion
- Diluted EPS will be in the range of $5.65 to $6.15
We expect financial results to be weighted towards the first
half of the year primarily due to line changeovers, product mix
changes and lower production rates on certain lines in the second
half of fiscal 2016.
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
FY16
|
Q4
FY15
|
Sequential
Comparison – Main Drivers
|
Revenue
|
$802.4M
|
$765.5M
|
Up 4.8% primarily due
to increased deliveries
|
Gross
margin
|
23.0%
|
22.8%
|
Up 20 bps due to
favorable product mix, favorable pricing and improved production
efficiencies in the manufacturing segment
|
Selling
and
administrative
expense
|
$36.5M
|
$39.6M
|
Down 7.8% primarily
due to timing of employee-related costs
|
Gain on
disposition
of
equipment
|
$0.3M
|
$0.4M
|
Timing of sales
fluctuates and is opportunistic
|
Adjusted
EBITDA
|
$161.8M
|
$147.6M
|
Up 9.6% driven by
higher deliveries and gross margin
|
Effective tax
rate
|
31.3%
|
26.9%
|
Reflects a change in
the geographic mix of earnings and in GIMSA JV earnings, and the
effects of discrete items
|
Net earnings
attributable
to noncontrolling
interest
|
$29.3M
|
$31.1M
|
Driven by timing of
deliveries and margin from our GIMSA JV
|
Net
earnings
|
$69.4M
|
$66.9M
|
|
Diluted
EPS
|
$2.15
|
$2.02
|
|
Segment Summary
|
Q1
FY16
|
Q4
FY15
|
Sequential
Comparison – Main Drivers
|
Manufacturing
|
Revenue
|
$698.7M
|
$657.5M
|
Up 6.3% primarily due
to increased deliveries
|
Gross
margin
|
23.7%
|
23.0%
|
Up 70 bps due to
favorable product mix, favorable pricing and improved
efficiencies
|
Operating
margin(1)
|
22.0%
|
21.0%
|
|
Deliveries
|
6,900
|
6,200
|
|
Wheels &
Parts
|
Revenue
|
$78.7M
|
$84.6M
|
Down 7.0% primarily
attributable to lower wheel and component volumes
|
Gross
margin
|
7.3%
|
10.8%
|
Down 350 bps
primarily due to lower volumes and a decrease in scrap metal
prices
|
Operating
margin (1)
|
4.3%
|
7.8%
|
|
Leasing &
Services
|
Revenue
|
$25.0M
|
$23.4M
|
Up 6.8% primarily due
to higher volume of maintenance management railcars
|
Gross
margin
|
53.6%
|
62.0%
|
Down 840 bps
primarily due to railcar transportation and storage
costs
|
Operating
margin (1) (2)
|
39.8%
|
43.6%
|
|
Lease fleet
utilization
|
89.0%
|
96.6%
|
Impacted by tank cars
and recent portfolio acquisition; utilization is 97% excluding
these items
|
|
(1) See
supplemental segment information on page 10 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 first
quarter 2016 results. In conjunction with this news release,
Greenbrier has posted a supplemental earnings presentation to our
website. Teleconference details are as follows:
- January 7, 2016
- 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 (www.gbrx.com),
headquartered in Lake Oswego,
Oregon, is a leading supplier of transportation equipment
and services to the railroad industry. Greenbrier builds new
railroad freight cars in manufacturing facilities in the U.S.,
Mexico and Poland and marine barges at our U.S.
manufacturing facility. Greenbrier sells reconditioned wheel sets
and provides wheel services at locations throughout the U.S. We
recondition, manufacture and sell railcar parts at various U.S.
sites. Through GBW Railcar Services, LLC, a 50/50 joint venture
with Watco Companies, LLC, freight cars are repaired and
refurbished at over 30 locations across North America, including more than 10 tank car
repair and maintenance facilities certified by the Association of
American Railroads. Greenbrier owns a lease fleet of over 10,000
railcars and performs management services for over 250,000
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 adjust
manufacturing capacity, restructuring plans, new railcar delivery
volumes and schedules, changes 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; 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 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, 2015,
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)
|
|
|
|
|
|
|
|
November
30, 2015
|
August
31, 2015
|
May 31,
2015
|
February
28, 2015
|
November
30, 2014
|
Assets
|
|
|
|
|
|
Cash and
cash equivalents
|
$ 197,633
|
$ 172,930
|
$ 122,783
|
$ 145,512
|
$ 118,958
|
Restricted cash
|
9,818
|
8,869
|
8,912
|
8,722
|
9,170
|
Accounts
receivable, net
|
237,213
|
196,029
|
214,890
|
207,488
|
191,532
|
Inventories
|
444,023
|
445,535
|
426,655
|
418,590
|
372,039
|
Leased
railcars for syndication
|
238,911
|
212,534
|
213,197
|
198,010
|
177,221
|
Equipment on operating leases, net
|
252,641
|
255,391
|
257,962
|
261,234
|
264,615
|
Property, plant and equipment, net
|
307,196
|
303,135
|
285,570
|
271,977
|
258,303
|
Investment in unconsolidated affiliates
|
86,658
|
87,270
|
91,217
|
71,225
|
72,342
|
Intangibles and other assets, net
|
76,157
|
65,554
|
62,664
|
64,386
|
61,937
|
Goodwill
|
43,265
|
43,265
|
43,265
|
43,265
|
43,265
|
|
$ 1,893,515
|
$ 1,790,512
|
$ 1,727,115
|
$ 1,690,409
|
$ 1,569,382
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Revolving notes
|
$ 163,888
|
$ 50,888
|
$ 92,507
|
$ 90,563
|
$ 46,527
|
Accounts
payable and accrued liabilities
|
384,670
|
455,213
|
405,544
|
417,844
|
374,509
|
Deferred
income taxes
|
63,483
|
60,657
|
75,572
|
77,632
|
81,808
|
Deferred
revenue
|
42,351
|
33,836
|
24,209
|
28,287
|
27,067
|
Notes
payable
|
324,668
|
326,429
|
346,279
|
441,326
|
443,303
|
|
|
|
|
|
|
Total
equity - Greenbrier
|
771,945
|
732,838
|
672,396
|
541,491
|
519,884
|
Noncontrolling interest
|
142,510
|
130,651
|
110,608
|
93,266
|
76,284
|
Total
equity
|
914,455
|
863,489
|
783,004
|
634,757
|
596,168
|
|
$ 1,893,515
|
$ 1,790,512
|
$ 1,727,115
|
$ 1,690,409
|
$ 1,569,382
|
THE GREENBRIER
COMPANIES, INC.
|
Consolidated
Statements of Operations
(In thousands,
except per share amounts, unaudited)
|
|
|
|
Three Months
Ended
November
30
|
|
|
2015
|
|
2014
|
Revenue
|
|
|
|
|
Manufacturing
|
|
$
698,661
|
|
$
379,949
|
Wheels
& Parts
|
|
78,729
|
|
86,624
|
Leasing
& Services
|
|
24,999
|
|
28,485
|
|
|
802,389
|
|
495,058
|
Cost of
revenue
|
|
|
|
|
Manufacturing
|
|
533,033
|
|
316,037
|
Wheels
& Parts
|
|
73,002
|
|
76,872
|
Leasing
& Services
|
|
11,589
|
|
14,081
|
|
|
617,624
|
|
406,990
|
|
|
|
|
|
Margin
|
|
184,765
|
|
88,068
|
|
|
|
|
|
Selling and
administrative
|
|
36,549
|
|
33,729
|
Net gain on
disposition of equipment
|
|
(269)
|
|
(83)
|
Earnings from
operations
|
|
148,485
|
|
54,422
|
|
|
|
|
|
Other
costs
|
|
|
|
|
Interest and foreign
exchange
|
|
5,436
|
|
3,141
|
Earnings before
income tax and earnings from unconsolidated affiliates
|
|
143,049
|
|
51,281
|
Income tax
expense
|
|
(44,719)
|
|
(16,054)
|
Earnings before
earnings from
unconsolidated affiliates
|
|
98,330
|
|
35,227
|
Earnings from
unconsolidated affiliates
|
|
383
|
|
755
|
|
|
|
|
|
Net
earnings
|
|
98,713
|
|
35,982
|
Net earnings
attributable to noncontrolling interest
|
|
(29,280)
|
|
(3,196)
|
|
|
|
|
|
Net earnings
attributable to Greenbrier
|
|
$
69,433
|
|
$
32,786
|
|
|
|
|
|
Basic earnings per
common share:
|
|
$
2.36
|
|
$
1.19
|
|
|
|
|
|
Diluted earnings
per common share:
|
|
$
2.15
|
|
$
1.01
|
|
|
|
|
|
Weighted average
common shares:
|
|
|
|
|
Basic
|
|
29,391
|
|
27,665
|
Diluted
|
|
32,578
|
|
33,713
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
0.20
|
|
$
0.15
|
THE GREENBRIER
COMPANIES, INC.
|
Consolidated
Statements of Cash Flows
(In thousands,
unaudited)
|
|
|
Three Months
Ended
November
30
|
|
|
2015
|
2014
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net earnings
|
|
|
$
98,713
|
|
$ 35,982
|
|
Adjustments to reconcile net earnings to net cash
used in operating activities:
|
|
|
|
|
|
|
Deferred income taxes
|
|
|
3,019
|
|
607
|
|
Depreciation and amortization
|
|
|
12,974
|
|
12,050
|
|
Net gain on disposition of equipment
|
|
|
(269)
|
|
(83)
|
|
Stock based compensation expense
|
|
|
5,301
|
|
3,411
|
|
Noncontrolling interest adjustments
|
|
|
262
|
|
12,952
|
|
Other
|
|
|
637
|
|
152
|
|
Decrease (increase) in assets:
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
(40,889)
|
|
7,806
|
|
Inventories
|
|
|
(274)
|
|
(67,642)
|
|
Leased railcars for syndication
|
|
|
(61,059)
|
|
(54,732)
|
|
Other
|
|
|
(3,578)
|
|
2,211
|
|
Increase (decrease) in liabilities:
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
(77,605)
|
|
(13,032)
|
|
Deferred revenue
|
|
|
(723)
|
|
6,488
|
|
Net cash used in operating activities
|
|
|
(63,491)
|
|
(53,830)
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Proceeds from sales of assets
|
|
|
41,353
|
|
2,073
|
|
Capital expenditures
|
|
|
(15,595)
|
|
(31,314)
|
|
Increase in restricted cash
|
|
|
(949)
|
|
(30)
|
|
Cash distribution from
unconsolidated affiliates
|
|
|
616
|
|
-
|
|
Investment in and advances to unconsolidated affiliates
|
|
|
(1,866)
|
|
(2,500)
|
|
Net cash provided by (used in) investing activities
|
|
|
23,559
|
|
(31,771)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Net changes in revolving notes with maturities of 90 days or
less
|
|
|
113,000
|
|
15,000
|
|
Proceeds from revolving notes
with maturities longer than 90 days
|
|
|
-
|
|
23,056
|
|
Repayments of revolving notes
with maturities longer than 90 days
|
|
|
-
|
|
(4,610)
|
|
Repayments of notes payable
|
|
|
(1,761)
|
|
(1,758)
|
|
Debt issuance costs
|
|
|
(4,493)
|
|
|
|
Decrease in restricted cash
|
|
|
-
|
|
11,000
|
|
Cash distribution to joint venture partner
|
|
|
(17,654)
|
|
(2,275)
|
|
Repurchase of stock
|
|
|
(20,203)
|
|
(21,730)
|
|
Dividends
|
|
|
(105)
|
|
-
|
|
Excess tax benefit from restricted stock awards
|
|
|
2,827
|
|
2,970
|
|
Other
|
|
|
(6)
|
|
-
|
|
Net cash provided by financing activities
|
|
|
71,605
|
|
21,653
|
|
Effect of exchange rate changes
|
|
|
(6,970)
|
|
(2,010)
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
24,703
|
|
(65,958)
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
Beginning of
period
|
|
|
172,930
|
|
184,916
|
|
End of
period
|
|
|
$
197,633
|
|
$ 118,958
|
|
THE GREENBRIER
COMPANIES, INC.
|
Supplemental
Information
(In thousands,
except per share amounts, unaudited)
Operating Results
by Quarter for 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
$
379,949
|
|
$ 505,241
|
|
$ 593,376
|
|
$ 657,485
|
|
$ 2,136,051
|
|
Wheels
& Parts
|
86,624
|
|
102,640
|
|
97,407
|
|
84,566
|
|
371,237
|
|
Leasing
& Services
|
28,485
|
|
22,268
|
|
23,823
|
|
23,414
|
|
97,990
|
|
|
495,058
|
|
630,149
|
|
714,606
|
|
765,465
|
|
2,605,278
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
316,037
|
|
403,227
|
|
465,658
|
|
506,492
|
|
1,691,414
|
|
Wheels
& Parts
|
76,872
|
|
92,768
|
|
89,645
|
|
75,395
|
|
334,680
|
|
Leasing
& Services
|
14,081
|
|
8,844
|
|
10,017
|
|
8,889
|
|
41,831
|
|
|
406,990
|
|
504,839
|
|
565,320
|
|
590,776
|
|
2,067,925
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin
|
88,068
|
|
125,310
|
|
149,286
|
|
174,689
|
|
537,353
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expense
|
33,729
|
|
32,899
|
|
45,595
|
|
39,568
|
|
151,791
|
|
Net gain on
disposition of equipment
|
(83)
|
|
(121)
|
|
(720)
|
|
(406)
|
|
(1,330)
|
|
Earnings from
operations
|
54,422
|
|
92,532
|
|
104,411
|
|
135,527
|
|
386,892
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
costs
|
|
|
|
|
|
|
|
|
|
|
Interest
and foreign exchange
|
3,141
|
|
1,929
|
|
4,285
|
|
1,824
|
|
11,179
|
|
Earnings before
income tax and earnings (loss)
from unconsolidated
affiliates
|
51,281
|
|
90,603
|
|
100,126
|
|
133,703
|
|
375,713
|
|
Income tax
expense
|
(16,054)
|
|
(29,372)
|
|
(30,783)
|
|
(35,951)
|
|
(112,160)
|
|
Earnings (loss) from
unconsolidated affiliates
|
755
|
|
(185)
|
|
982
|
|
204
|
|
1,756
|
|
Net
earnings
|
35,982
|
|
61,046
|
|
70,325
|
|
97,956
|
|
265,309
|
|
Net earnings
attributable to noncontrolling
interest
|
(3,196)
|
|
(10,695)
|
|
(27,514)
|
|
(31,072)
|
|
(72,477)
|
|
Net earnings
attributable to Greenbrier
|
$ 32,786
|
|
$
50,351
|
|
$ 42,811
|
|
$ 66,884
|
|
$ 192,832
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share (1)
|
$
1.19
|
|
$
1.86
|
|
$
1.54
|
|
$
2.23
|
|
$
6.85
|
|
Diluted earnings
per common share (1)
|
$
1.01
|
|
$
1.57
|
|
$
1.33
|
|
$
2.02
|
|
$
5.93
|
|
|
(1) Quarterly amounts
may 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 and 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, 2015:
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Earnings (loss) from
operations
|
|
|
External
|
|
Intersegment
|
|
Total
|
|
External
|
|
Intersegment
|
|
Total
|
|
Manufacturing
|
$
698,661
|
|
$
-
|
|
$
698,661
|
|
$ 153,704
|
|
$
-
|
|
$ 153,704
|
|
Wheels &
Parts
|
78,729
|
|
6,816
|
|
85,545
|
|
3,403
|
|
684
|
|
4,087
|
|
Leasing &
Services
|
24,999
|
|
6,709
|
|
31,708
|
|
9,958
|
|
6,709
|
|
16,667
|
|
Eliminations
|
-
|
|
(13,525)
|
|
(13,525)
|
|
-
|
|
(7,393)
|
|
(7,393)
|
|
Corporate
|
-
|
|
-
|
|
-
|
|
(18,580)
|
|
-
|
|
(18,580)
|
|
|
$
802,389
|
|
$
-
|
|
$
802,389
|
|
$
148,485
|
|
$
-
|
|
$ 148,485
|
|
Three months ended
August 31, 2015:
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Earnings (loss) from
operations
|
|
|
External
|
|
Intersegment
|
|
Total
|
|
External
|
|
Intersegment
|
|
Total
|
|
Manufacturing
|
$
657,485
|
|
$ -
|
|
$
657,485
|
|
$
138,319
|
|
$ -
|
|
$ 138,319
|
|
Wheels &
Parts
|
84,566
|
|
6,807
|
|
91,373
|
|
6,577
|
|
585
|
|
7,162
|
|
Leasing &
Services
|
23,414
|
|
19,067
|
|
42,481
|
|
10,210
|
|
19,067
|
|
29,277
|
|
Eliminations
|
-
|
|
(25,874)
|
|
(25,874)
|
|
-
|
|
(19,652)
|
|
(19,652)
|
|
Corporate
|
-
|
|
-
|
|
-
|
|
(19,579)
|
|
-
|
|
(19,579)
|
|
|
$
765,465
|
|
$
-
|
|
$
765,465
|
|
$
135,527
|
|
$ -
|
|
$ 135,527
|
|
|
Total
assets
|
|
|
November
30
|
|
August 31,
|
|
(In
thousands)
|
2015
|
|
2015
|
|
Manufacturing
|
$
656,505
|
|
$
675,409
|
|
Wheels &
Parts
|
302,164
|
|
291,798
|
|
Leasing &
Services
|
631,699
|
|
549,073
|
|
Unallocated
|
303,147
|
|
274,232
|
|
|
$
1,893,515
|
|
$
1,790,512
|
|
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,
August
31,
2015
2015
|
|
|
Revenue
|
$
96,000
|
|
$
95,200
|
|
|
Earnings from
operations
|
$
2,400
|
|
$
300
|
|
|
Total
assets
|
$
245,700
|
|
$
239,900
|
|
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,
2015
|
|
August 31,
2015
|
|
|
Net
earnings
|
$
98,713
|
|
$
97,956
|
|
|
Interest and foreign
exchange
|
5,436
|
|
1,824
|
|
|
Income tax
expense
|
44,719
|
|
35,951
|
|
|
Depreciation and
amortization
|
12,974
|
|
11,898
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
161,842
|
|
$
147,629
|
|
|
|
|
|
|
|
|
|
|
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
November
30,
2015
|
Backlog Activity
(units)
|
|
|
|
Beginning
backlog
|
41,300
|
Orders
received
|
500
|
Production held as
Leased railcars for syndication
|
(600)
|
Production sold
directly to third parties
|
(5,200)
|
Ending
backlog
|
36,000
|
|
|
Delivery
Information (units)
|
|
Production sold
directly to third parties
|
5,200
|
Sales of Leased
railcars for syndication
|
1,700
|
Total
deliveries
|
6,900
|
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
|
|
November
30,
2015
|
August 31,
2015
|
Weighted average
basic common shares outstanding (1)
|
29,391
|
30,040
|
Dilutive effect of
convertible notes (2)
|
3,177
|
3,192
|
Dilutive effect of
performance awards (3)
|
10
|
165
|
Weighted average
diluted common shares outstanding
|
32,578
|
33,397
|
|
|
|
(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.
|
|
(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, using the treasury stock method, associated with
shares underlying the 2026 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 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
|
|
November
30,
2015
|
August 31,
2015
|
Net earnings
attributable to Greenbrier
|
$
69,433
|
$ 66,884
|
Add back:
|
|
|
Interest and debt
issuance costs on the 2018 Convertible
notes, net of tax
|
496
|
744
|
Earnings before
interest and debt issuance costs on
convertible notes
|
$
69,929
|
$ 67,628
|
Weighted average
diluted common shares outstanding
|
32,578
|
33,397
|
|
|
|
Diluted earnings per
share
|
$
2.15
|
$
2.02
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/greenbrier-reports-record-first-quarter-results-300200832.html
SOURCE The Greenbrier Companies, Inc. (GBX)