LAKE OSWEGO, Ore., April 5, 2016 /PRNewswire/ -- The Greenbrier
Companies, Inc. (NYSE: GBX) today reported financial results for
its second fiscal quarter ended February 29,
2016.
Second Quarter Highlights
- Net earnings attributable to Greenbrier for the quarter were
$44.9 million, or $1.41 per diluted share, on revenue of
$669.1 million.
- Adjusted EBITDA for the quarter was $108.2 million, or 16.2% of revenue.
- Net debt was reduced by over $175
million during the quarter. Net debt to LTM EBITDA down to
0.2x.
- New railcar backlog as of February 29,
2016 was 34,100 units with an estimated value of
$4.0 billion (average unit sale price
of $116,000), compared to 36,000
units with an estimated value of $4.1
billion (average unit sale price of $115,000) as of November
30, 2015.
- Diversified orders for 3,000 new railcars were received during
the quarter, valued at nearly $310
million, or an average price of approximately $103,000 per railcar.
- New railcar deliveries totaled 4,500 units for the quarter,
compared to 6,900 units for the quarter ended November 30, 2015.
- Marine backlog as of February 29,
2016 was approximately $18
million.
- Board declared a quarterly dividend of $0.20 per share payable on May 4, 2016 to shareholders of record as of
April 13, 2016. This marks the
seventh straight quarterly dividend.
- Repurchased 533,061 shares of common stock at a cost of
$13.3 million during the quarter.
Board authorization for approximately $88.0
million remains available for further share
repurchases.
- Subsequent to quarter end, formed a 50/50 joint venture with
Sumitomo Corporation of Americas to establish a leading axle
machining facility on West Coast.
Progress on Longer Term Financial Goals
- Second quarter aggregate gross margin, excluding the
syndication of a railcar portfolio acquired in our first quarter,
was 20.0%, consistent with our goal of at least 20% gross margin by
the second half of fiscal 2016. The syndication generated high
rates of return; however, the margin percentage had a dilutive
impact, resulting in aggregate gross margin of 17.9%.
- Second quarter annualized ROIC of 31.0% continues ROIC
performance above 25% for the second consecutive quarter. We expect
to maintain or exceed our 25% ROIC target for the second half of
fiscal 2016.
William A. Furman, Chairman and
CEO said, "Greenbrier delivered solid results again this quarter
across all business units. Our leasing and management
services business profitably syndicated the majority of the 4,000
railcar portfolio acquired in our first quarter. We continue to
manage these assets and earn fee income, deriving the benefits of
our strong balance sheet and integrated model. Based on our
current outlook, we remain on track to achieve our fiscal 2016
guidance for deliveries, revenue and diluted EPS."
Furman added, "Greenbrier has transformed itself through the
ongoing contributions of our employees and partners. Over the past
five years, we have refined our business model and as industry
demand moderates and customer requirements shift to different
railcar types, Greenbrier is well-positioned. In recent years, we
have diversified our product mix, and launched new high-value
products while developing a low cost, flexible, international
manufacturing base. Our aftermarket businesses in railcar repair,
wheels and parts provide ongoing stability. In an extension of our
aftermarket business, I am pleased to announce that we have formed
GBSummit, a 50/50 joint venture with Sumitomo Corporation of
Americas. When it opens in early 2017, GBSummit will be the
preeminent axle machining location on the US West Coast that
supports growing intermodal rail activity and will create value for
our customers and partners."
Furman concluded, "Greenbrier is adapting well to the present
industry and economic climate. We enjoy a diversified backlog, with
non-energy related railcars representing 83% of our total backlog.
Our healthy backlog and our integrated business model, unique in
the industry, position us for steady performance into 2017 and
beyond. Greenbrier has a strong balance sheet and we will continue
to strategically invest globally in assets and projects generating
high rates of return while returning capital to shareholders."
Business Outlook
Based on current business trends and production schedules for
fiscal 2016, Greenbrier narrows previously provided guidance
for:
- New railcar deliveries to be approximately 20,000 – 22,000
units
- Revenue to exceed $2.8
billion
- Diluted EPS in the range of $5.70 to
$6.10
We expect financial results to be weighted toward 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
|
Q2 FY16
|
Q1 FY16
|
Sequential Comparison
– Main Drivers
|
Revenue
|
$669.1M
|
$802.4M
|
Down 16.6% primarily
due to decreased deliveries
|
Gross
margin
|
17.9%
|
23.0%
|
Down 510 bps due to
inefficiencies associated with product line changeovers and marine
production, and lower margin percentage on the syndication of
acquired railcar portfolio
|
Selling
and
administrative
expense
|
$38.2M
|
$36.5M
|
Up 4.7% primarily due
to consulting and higher employee related costs
|
Gain on
disposition
of
equipment
|
$10.7M
|
$0.3M
|
Timing of sales
fluctuates and is opportunistic
|
Adjusted
EBITDA
|
$108.2M
|
$161.8M
|
Down 33.1% driven by
lower deliveries and gross margin
|
Effective tax
rate
|
28.3%
|
31.3%
|
Reflects a change in
the geographic mix of earnings and the effects of discrete
items
|
Net earnings
attributable
to noncontrolling
interest
|
$21.3M
|
$29.3M
|
Driven by timing of
deliveries and margin from our GIMSA JV
|
Net
earnings
|
$44.9M
|
$69.4M
|
|
Diluted
EPS
|
$1.41
|
$2.15
|
|
Segment Summary
|
Q2
FY16
|
Q1
FY16
|
Sequential
Comparison – Main Drivers
|
Manufacturing
|
Revenue
|
$454.5M
|
$698.7M
|
Down 35.0% primarily
due to lower deliveries
|
Gross
margin
|
20.4%
|
23.7%
|
Down 330 bps due to
lower syndication volume and inefficiencies associated with
line changeovers and marine production
|
Operating
margin (1)
|
17.3%
|
22.0%
|
|
Deliveries
|
4,500
|
6,900
|
|
Wheels &
Parts
|
Revenue
|
$90.5M
|
$78.7M
|
Up 15.0% primarily
attributable to a seasonal increase in wheel and component volumes
and more favorable product mix
|
Gross
margin
|
10.0%
|
7.3%
|
Up 270 bps primarily
due to higher sales volumes and more favorable product
mix
|
Operating
margin (1)
|
7.2%
|
4.3%
|
|
Leasing &
Services
|
Revenue
|
$124.1M
|
$25.0M
|
Up due to the sale of
acquired railcar portfolio
|
Gross
margin
|
14.6%
|
53.6%
|
Down due to lower
margin on the syndication of acquired railcar portfolio; excluding
this activity, gross margin is 51.1%
|
Operating
margin (1) (2)
|
19.7%
|
39.8%
|
|
Lease fleet
utilization
|
86.0%
|
89.0%
|
Decline driven by
sale of leased railcars; number of off-lease railcars modestly
lower than Q1
|
|
(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 2016 results. In conjunction with this news release,
Greenbrier has posted a supplemental earnings presentation to our
website. Teleconference details are as follows:
- April 5, 2016
- 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
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 9,000
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)
|
|
|
February
29, 2016
|
November
30, 2015
|
August
31, 2015
|
May 31,
2015
|
February
28, 2015
|
Assets
|
|
|
|
|
|
Cash and
cash equivalents
|
$ 283,541
|
$ 197,633
|
$ 172,930
|
$ 122,783
|
$ 145,512
|
Restricted cash
|
8,877
|
9,818
|
8,869
|
8,912
|
8,722
|
Accounts
receivable, net
|
228,072
|
237,213
|
196,029
|
214,890
|
207,488
|
Inventories
|
421,243
|
444,023
|
445,535
|
426,655
|
418,590
|
Leased
railcars for syndication
|
179,975
|
238,911
|
212,534
|
213,197
|
198,010
|
Equipment on operating leases, net
|
235,171
|
252,641
|
255,391
|
257,962
|
261,234
|
Property, plant and equipment, net
|
310,019
|
307,196
|
303,135
|
285,570
|
271,977
|
Investment in unconsolidated affiliates
|
86,850
|
86,658
|
87,270
|
91,217
|
71,225
|
Intangibles and other assets, net
|
73,296
|
76,157
|
65,554
|
62,664
|
64,386
|
Goodwill
|
43,265
|
43,265
|
43,265
|
43,265
|
43,265
|
|
$ 1,870,309
|
$ 1,893,515
|
$ 1,790,512
|
$ 1,727,115
|
$ 1,690,409
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Revolving notes
|
$ 75,000
|
$ 163,888
|
$ 50,888
|
$ 92,507
|
$ 90,563
|
Accounts
payable and accrued liabilities
|
401,010
|
384,670
|
455,213
|
405,544
|
417,844
|
Deferred
income taxes
|
55,204
|
63,483
|
60,657
|
75,572
|
77,632
|
Deferred
revenue
|
84,362
|
42,351
|
33,836
|
24,209
|
28,287
|
Notes
payable
|
322,539
|
324,668
|
326,429
|
346,279
|
441,326
|
|
|
|
|
|
|
Total
equity - Greenbrier
|
800,940
|
771,945
|
732,838
|
672,396
|
541,491
|
Noncontrolling interest
|
131,254
|
142,510
|
130,651
|
110,608
|
93,266
|
Total
equity
|
932,194
|
914,455
|
863,489
|
783,004
|
634,757
|
|
$ 1,870,309
|
$ 1,893,515
|
$ 1,790,512
|
$ 1,727,115
|
$ 1,690,409
|
THE GREENBRIER
COMPANIES, INC.
|
Consolidated
Statements of Income
|
(In thousands,
except per share amounts, unaudited)
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
February
29,
2016
|
|
February
28,
2015
|
|
February
29, 2016
|
|
February
28,
2015
|
Revenue
|
|
|
|
|
|
|
|
|
Manufacturing
|
$
454,531
|
|
$
505,241
|
|
$ 1,153,192
|
|
$ 885,190
|
|
Wheels
& Parts
|
90,458
|
|
102,640
|
|
169,187
|
|
189,264
|
|
Leasing
& Services
|
124,090
|
|
22,268
|
|
149,089
|
|
50,753
|
|
|
669,079
|
|
630,149
|
|
1,471,468
|
|
1,125,207
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
Manufacturing
|
361,827
|
|
403,227
|
|
894,860
|
|
719,264
|
|
Wheels
& Parts
|
81,388
|
|
92,768
|
|
154,390
|
|
169,640
|
|
Leasing
& Services
|
105,973
|
|
8,844
|
|
117,562
|
|
22,925
|
|
|
549,188
|
|
504,839
|
|
1,166,812
|
|
911,829
|
|
|
|
|
|
|
|
|
|
|
Margin
|
119,891
|
|
125,310
|
|
304,656
|
|
213,378
|
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expense
|
38,244
|
|
32,899
|
|
74,793
|
|
66,628
|
|
Net gain on
disposition of equipment
|
(10,746)
|
|
(121)
|
|
(11,015)
|
|
(204)
|
|
Earnings from
operations
|
92,393
|
|
92,532
|
|
240,878
|
|
146,954
|
|
|
|
|
|
|
|
|
|
|
Other
costs
|
|
|
|
|
|
|
|
|
Interest
and foreign exchange
|
1,417
|
|
1,929
|
|
6,853
|
|
5,070
|
|
Earnings before
income tax and earnings (loss) from unconsolidated affiliates
|
90,976
|
|
90,603
|
|
234,025
|
|
141,884
|
|
Income tax
expense
|
(25,734)
|
|
(29,372)
|
|
(70,453)
|
|
(45,426)
|
|
Earnings before
earnings (loss) from unconsolidated affiliates
|
65,242
|
|
61,231
|
|
163,572
|
|
96,458
|
|
Earnings (loss) from
unconsolidated affiliates
|
974
|
|
(185)
|
|
1,357
|
|
570
|
|
Net
earnings
|
66,216
|
|
61,046
|
|
164,929
|
|
97,028
|
|
Net earnings
attributable to noncontrolling interest
|
(21,348)
|
|
(10,695)
|
|
(50,628)
|
|
(13,891)
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Greenbrier
|
$
44,868
|
|
$ 50,351
|
|
$ 114,301
|
|
$ 83,137
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share:
|
$
1.54
|
|
$
1.86
|
|
$
3.91
|
|
$
3.04
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share:
|
$
1.41
|
|
$
1.57
|
|
$
3.55
|
|
$
2.57
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares:
|
|
|
|
|
|
|
|
|
Basic
|
29,098
|
|
27,028
|
|
29,244
|
|
27,348
|
|
Diluted
|
32,360
|
|
33,073
|
|
32,542
|
|
33,395
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share:
|
$
0.20
|
|
$
0.15
|
|
$
0.40
|
|
$
0.30
|
|
THE GREENBRIER
COMPANIES, INC.
|
Consolidated
Statements of Cash Flows
|
(In thousands,
unaudited)
|
|
|
|
Six Months Ended
|
|
|
February
29,
2016
|
|
February
28,
2015
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net earnings
|
|
$
|
164,929
|
|
$
97,028
|
Adjustments to reconcile net earnings to net cash provided
by
(used in) operating
activities:
|
|
|
|
|
|
Deferred income
taxes
|
|
|
(5,287)
|
|
(3,245)
|
Depreciation and
amortization
|
|
|
27,842
|
|
22,398
|
Net gain on disposition
of equipment
|
|
|
(11,015)
|
|
(204)
|
Stock based
compensation expense
|
|
|
10,740
|
|
7,193
|
Noncontrolling interest adjustments
|
|
|
2,815
|
|
21,824
|
Other
|
|
|
491
|
|
549
|
Decrease (increase) in
assets:
|
|
|
|
|
|
Accounts receivable, net
|
|
|
(30,356)
|
|
(6,256)
|
Inventories
|
|
|
21,922
|
|
(116,432)
|
Leased railcars for syndication
|
|
|
(15,391)
|
|
(75,564)
|
Other
|
|
|
(3,717)
|
|
(355)
|
Increase (decrease) in liabilities:
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
(55,448)
|
|
37,521
|
Deferred revenue
|
|
|
41,790
|
|
7,750
|
Net cash provided by (used in) operating activities
|
|
|
149,315
|
|
(7,793)
|
Cash flows from
investing activities:
|
|
|
|
|
|
Proceeds from sales of assets
|
|
|
80,541
|
|
3,019
|
Capital expenditures
|
|
|
(27,974)
|
|
(53,856)
|
Investment in and advances to unconsolidated affiliates
|
|
|
(5,140)
|
|
(5,715)
|
Decrease (increase) in restricted cash
|
|
|
(8)
|
|
418
|
Other
|
|
|
2,640
|
|
467
|
Net cash
provided by (used in) investing activities
|
|
|
50,059
|
|
(55,667)
|
Cash flows from
financing activities:
|
|
|
|
|
|
Net
changes in revolving notes with maturities of 90 days or
less
|
|
|
26,000
|
|
53,000
|
Proceeds
from revolving notes with maturities longer than 90 days
|
|
|
-
|
|
42,563
|
Repayments of revolving notes with maturities longer than 90
days
|
|
|
(1,888)
|
|
(18,081)
|
Repayments of notes
payable
|
|
|
(3,730)
|
|
(3,740)
|
Debt issuance costs
|
|
|
(4,149)
|
|
-
|
Decrease in restricted
cash
|
|
|
-
|
|
11,000
|
Repurchase of stock
|
|
|
(33,246)
|
|
(46,946)
|
Dividends
|
|
|
(11,575)
|
|
(8,016)
|
Cash distribution to joint venture
partner
|
|
|
(53,543)
|
|
(4,422)
|
Excess tax benefit from restricted
stock awards
|
|
|
2,786
|
|
3,858
|
Other
|
|
|
(6)
|
|
-
|
Net
cash provided by (used in) financing activities
|
|
|
(79,351)
|
|
29,216
|
Effect of exchange rate
changes
|
|
|
(9,412)
|
|
(5,160)
|
Increase (decrease) in cash and
cash equivalents
|
|
|
110,611
|
|
(39,404)
|
Cash and cash
equivalents
|
|
|
|
|
|
Beginning of
period
|
|
|
172,930
|
|
184,916
|
End of
period
|
|
$
|
283,541
|
|
$ 145,512
|
THE GREENBRIER
COMPANIES, INC.
|
Supplemental
Information
|
(In thousands,
except per share amounts, unaudited)
|
|
Operating Results
by Quarter for 2016 are as follows:
|
|
|
First
|
|
Second
|
|
Total
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
Manufacturing
|
$ 698,661
|
|
$ 454,531
|
|
$ 1,153,192
|
|
Wheels
& Parts
|
78,729
|
|
90,458
|
|
169,187
|
|
Leasing
& Services
|
24,999
|
|
124,090
|
|
149,089
|
|
|
802,389
|
|
669,079
|
|
1,471,468
|
|
Cost of
revenue
|
|
|
|
|
|
|
Manufacturing
|
533,033
|
|
361,827
|
|
894,860
|
|
Wheels
& Parts
|
73,002
|
|
81,388
|
|
154,390
|
|
Leasing
& Services
|
11,589
|
|
105,973
|
|
117,562
|
|
|
617,624
|
|
549,188
|
|
1,166,812
|
|
|
|
|
|
|
|
|
Margin
|
184,765
|
|
119,891
|
|
304,656
|
|
|
|
|
|
|
|
|
Selling and
administrative expense
|
36,549
|
|
38,244
|
|
74,793
|
|
Net gain on
disposition of equipment
|
(269)
|
|
(10,746)
|
|
(11,015)
|
|
Earnings from
operations
|
148,485
|
|
92,393
|
|
240,878
|
|
|
|
|
|
|
|
|
Other
costs
|
|
|
|
|
|
|
Interest
and foreign exchange
|
5,436
|
|
1,417
|
|
6,853
|
|
Earnings before
income tax and earnings from
unconsolidated
affiliates
|
143,049
|
|
90,976
|
|
234,025
|
|
Income tax
expense
|
(44,719)
|
|
(25,734)
|
|
(70,453)
|
|
Earnings before
earnings from unconsolidated
affiliates
|
98,330
|
|
65,242
|
|
163,572
|
|
Earnings from
unconsolidated affiliates
|
383
|
|
974
|
|
1,357
|
|
Net
earnings
|
98,713
|
|
66,216
|
|
164,929
|
|
Net earnings
attributable to noncontrolling
interest
|
(29,280)
|
|
(21,348)
|
|
(50,628)
|
|
Net earnings
attributable to Greenbrier
|
$ 69,433
|
|
$ 44,868
|
|
$
114,301
|
|
|
|
|
|
|
|
|
Basic earnings per
common share (1)
|
$
2.36
|
|
$
1.54
|
|
$
3.91
|
|
Diluted earnings
per common share (1)
|
$
2.15
|
|
$
1.41
|
|
$
3.55
|
|
|
|
(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,
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
February 29, 2016:
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Earnings (loss) from
operations
|
|
|
External
|
|
Intersegment
|
|
Total
|
|
External
|
|
Intersegment
|
|
Total
|
|
Manufacturing
|
$
454,531
|
|
$
-
|
|
$
454,531
|
|
$
78,798
|
|
$
17
|
|
$ 78,815
|
|
Wheels &
Parts
|
90,458
|
|
7,200
|
|
97,658
|
|
6,506
|
|
761
|
|
7,267
|
|
Leasing &
Services
|
124,090
|
|
3,133
|
|
127,223
|
|
24,412
|
|
3,133
|
|
27,545
|
|
Eliminations
|
-
|
|
(10,333)
|
|
(10,333)
|
|
-
|
|
(3,911)
|
|
(3,911)
|
|
Corporate
|
-
|
|
-
|
|
-
|
|
(17,323)
|
|
-
|
|
(17,323)
|
|
|
$
669,079
|
|
$
-
|
|
$
669,079
|
|
$
92,393
|
|
$
-
|
|
$ 92,393
|
|
|
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
|
|
|
Total
assets
|
|
|
February
29,
|
|
November
30,
|
|
(In
thousands)
|
2016
|
|
2015
|
|
Manufacturing
|
$
624,961
|
|
$
656,505
|
|
Wheels &
Parts
|
307,724
|
|
302,164
|
|
Leasing &
Services
|
551,763
|
|
631,699
|
|
Unallocated
|
385,861
|
|
303,147
|
|
|
$
1,870,309
|
|
$
1,893,515
|
|
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 29, 2016
|
|
November
30, 2015
|
|
|
Revenue
|
$
97,700
|
|
$
96,000
|
|
|
Earnings from
operations
|
$
3,600
|
|
$
2,400
|
|
|
Total
assets
|
$
247,700
|
|
$
245,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
29,
2016
|
|
November
30,
2015
|
Net
earnings
|
$
66,216
|
|
$
98,713
|
Interest and foreign
exchange
|
1,417
|
|
5,436
|
Income tax
expense
|
25,734
|
|
44,719
|
Depreciation and
amortization
|
14,868
|
|
12,974
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
108,235
|
|
$
161,842
|
|
|
|
|
|
|
|
|
|
Three
Months
Ended
February
29,
2016
|
Backlog Activity
(units)
|
|
|
|
Beginning
backlog
|
36,000
|
Orders
received
|
3,000
|
Production held as
Leased railcars for syndication
|
(1,100)
|
Production sold
directly to third parties
|
(3,800)
|
Ending
backlog
|
34,100
|
|
|
Delivery
Information (units)
|
|
Production sold
directly to third parties
|
3,800
|
Sales of Leased
railcars for syndication
|
700
|
Total
deliveries
|
4,500
|
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
29,
2016
|
November
30,
2015
|
Weighted average
basic common shares outstanding (1)
|
29,098
|
29,391
|
Dilutive effect of
convertible notes (2)
|
3,203
|
3,177
|
Dilutive effect of
performance awards (3)
|
59
|
10
|
Weighted average
diluted common shares outstanding
|
32,360
|
32,578
|
|
|
|
|
|
(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 excluded in the
Weighted average diluted common shares outstanding as the average
stock price during the periods did not exceed the applicable
conversion price.
|
|
|
(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
|
|
February
29,
2016
|
November
30,
2015
|
Net earnings
attributable to Greenbrier
|
$
44,868
|
$ 69,433
|
Add back:
|
|
|
Interest and debt
issuance costs on the 2018 Convertible notes, net of tax
|
733
|
496
|
Earnings before
interest and debt issuance costs on convertible notes
|
$
45,601
|
$ 69,929
|
Weighted average
diluted common shares outstanding
|
32,360
|
32,578
|
|
|
|
Diluted earnings per
share
|
$
1.41
|
$
2.15
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/greenbrier-reports-second-quarter-results-300246106.html
SOURCE The Greenbrier Companies, Inc. (GBX)