LAKE OSWEGO, Ore., July 6, 2016 /PRNewswire/ -- The Greenbrier
Companies, Inc. (NYSE: GBX) today reported financial results for
its third fiscal quarter ended May 31,
2016.
Third Quarter Highlights
- Net earnings attributable to Greenbrier for the quarter were
$35.4 million, or $1.12 per diluted share, on revenue of
$612.9 million.
- Adjusted EBITDA for the quarter was $99.5 million, or 16.2% of revenue.
- Net debt was reduced by over $21
million during the quarter. Net debt is less than
$100 million on total assets of
$1.8 billion. Net debt to LTM EBITDA
maintained at 0.2x.
- New railcar backlog as of May 31,
2016 was 31,200 units with an estimated value of
$3.6 billion (average unit sale price
of $116,000), compared to 34,100
units with an estimated value of $4.0
billion (average unit sale price of $116,000) as of February
29, 2016.
- Diversified orders for 1,700 new railcars were received during
the quarter, valued at $150 million,
or an average price of approximately $91,000 per railcar.
- New railcar deliveries totaled 4,300 units for the quarter,
compared to 4,500 units for the quarter ended February 29, 2016.
- Orders for two articulated ocean-going barges during the
quarter and three ocean-going deck barges in June bring marine
backlog to over $120 million.
- Board declared a 5% increase in the quarterly dividend to
$0.21 per share payable on
August 10, 2016 to shareholders of
record as of July 20, 2016.
Progress on Longer Term Financial Goals
- Third quarter aggregate gross margin, excluding syndication
activity from a railcar portfolio acquired in our first quarter,
was 22.5%, consistent with our goal of at least 20% gross margin by
the second half of fiscal 2016. We continue to be pleased
with the portfolio syndication returns; however, the margin
percentage on this activity had a dilutive impact, resulting in
aggregate gross margin of 20.7%.
- Third quarter annualized ROIC of 28.9% continues ROIC
performance above 25% for the third consecutive quarter. We expect
to maintain or exceed our 25% ROIC target for fiscal 2016.
William A. Furman, Chairman and
CEO said, "We posted strong operational and financial results in
the quarter, particularly in light of growing industry headwinds.
Profitability was solid with aggregate gross margin at 20.7%.
I am proud of our results so far this year and pleased that
we expect to achieve full year results within our range of
expectations. This is a testament to the dedication of our
employees and strength of our integrated business model."
Furman added, "As North American rail markets adjust to lower
railcar loadings and increased rail velocity, we will focus on this
core business while growing our earnings base in select
international markets where long-term demand for railcars is
strong. We achieved an important international milestone by
beginning production of 1,200 tank cars for Saudi Railway Company's
October 2015 order. I am also
pleased about the recently announced extension of our partnership
in Brazil and strongly believe
that global markets will be a key driver of future
growth."
Furman continued, "Greenbrier's backlog remains strong, with
non-energy related railcars representing over 80% of our total
backlog. The North American energy sector is contending with
a surplus of railcars. We continue to engage with our
customers to identify solutions for the 5,000 sand cars in our
backlog impacted by this over-supply issue. Finally, with the
recent marine barge orders, our marine backlog is over $120 million with production extending into
2018."
Furman concluded, "Greenbrier is a strong and diverse company.
Greenbrier's flexibility and creativity allow us to meet
challenging market conditions and we are well-prepared for markets
characterized by lower total railcar deliveries. We are proud
of our lower cost, flexible manufacturing capacity, diversified
product and customer mix, strong balance sheet and backlog.
Greenbrier's strategic transformation has positioned us to execute
on future opportunities, which we believe will lead to continued
growth and, ultimately, best position the company to increase
shareholder value."
Business Outlook
Based on current business trends and production schedules for
fiscal 2016, Greenbrier refines provided guidance for:
- New railcar deliveries to be approximately 20,000 – 21,000
units
- Revenue of approximately $2.8
billion
- Diluted EPS in the range of $5.70 to
$5.90
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
|
Q3
FY16
|
Q2
FY16
|
Sequential
Comparison – Main Drivers
|
Revenue
|
$612.9M
|
$669.1M
|
Down 8.4% primarily
due to lower volume of sales from acquired railcar portfolio and
lower wheel volumes
|
Gross
margin
|
20.7%
|
17.9%
|
Up 280 bps due
primarily to manufacturing efficiencies, a favorable product mix
and higher scrap pricing
|
Selling
and
administrative
expense
|
$43.3M
|
$38.2M
|
Up 13.4% primarily
attributed to higher employee related costs including long-term
incentive compensation
|
Net gain on
disposition
of
equipment
|
$0.3M
|
$10.7M
|
Timing of sales
fluctuates and is opportunistic
|
Adjusted
EBITDA
|
$99.5M
|
$108.2M
|
Down 8.0% due to
lower deliveries
|
Effective tax
rate
|
27.9%
|
28.3%
|
Reflects a change in
the geographic mix of earnings and the effects of discrete
items
|
Net earnings
attributable
to noncontrolling
interest
|
$24.2M
|
$21.3M
|
Driven by timing of
deliveries and higher margin from our GIMSA JV
|
Net
earnings
|
$35.4M
|
$44.9M
|
|
Diluted
EPS
|
$1.12
|
$1.41
|
|
Segment Summary
|
Q3
FY16
|
Q2
FY16
|
Sequential
Comparison – Main Drivers
|
Manufacturing
|
Revenue
|
$458.5M
|
$454.5M
|
Up 0.9% primarily due
to improved efficiencies and a change in mix partially offset by
lower deliveries
|
Gross
margin
|
23.1%
|
20.4%
|
Up 270 bps primarily
due to a change in product mix
|
Operating
margin (1)
|
20.2%
|
17.3%
|
|
Deliveries
|
4,300
|
4,500
|
|
Wheels &
Parts
|
Revenue
|
$78.4M
|
$90.5M
|
Down 13.4% primarily
attributable to lower wheel and component volumes
|
Gross
margin
|
11.0%
|
10.0%
|
Up 100 bps primarily
due to higher scrap pricing and a more favorable product
mix
|
Operating
margin (1)
|
7.4%
|
7.2%
|
|
Leasing &
Services
|
Revenue
|
$76.0M
|
$124.1M
|
Decline due to lower
volume of sales from acquired railcar portfolio
|
Gross
margin
|
16.8%
|
14.6%
|
Up due to lower
volume of sales from acquired railcar portfolio, which is dilutive;
excluding this activity, gross margin is 51.2% in Q3 and 51.1% in
Q2
|
Operating
margin (1) (2)
|
10.9%
|
19.7%
|
Q2 benefitted from
higher gains on disposition of equipment
|
Lease fleet
utilization
|
94.9%
|
95.4%
|
Excludes newly
manufactured railcars not yet on lease and the acquired railcar
portfolio
|
|
|
(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 third
quarter 2016 results. In conjunction with this news release,
Greenbrier has posted a supplemental earnings presentation to our
website. Teleconference details are as follows:
- July 6, 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 260,000
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 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; inability to convert
backlog of railcar orders and obtain and execute lease syndication
commitments; 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)
|
|
|
May
31,
2016
|
February
29,
2016
|
November
30,
2015
|
August
31,
2015
|
May
31, 2015
|
Assets
|
|
|
|
|
|
Cash and
cash equivalents
|
$ 214,440
|
$ 283,541
|
$ 197,633
|
$ 172,930
|
$ 122,783
|
Restricted cash
|
8,669
|
8,877
|
9,818
|
8,869
|
8,912
|
Accounts
receivable, net
|
213,510
|
228,072
|
237,213
|
196,029
|
214,890
|
Inventories
|
458,068
|
421,243
|
444,023
|
445,535
|
426,655
|
Leased
railcars for syndication
|
136,812
|
179,975
|
238,911
|
212,534
|
213,197
|
Equipment on operating leases, net
|
232,791
|
235,171
|
252,641
|
255,391
|
257,962
|
Property, plant and equipment, net
|
318,010
|
310,019
|
307,196
|
303,135
|
285,570
|
Investment in unconsolidated affiliates
|
89,297
|
86,850
|
86,658
|
87,270
|
91,217
|
Intangibles and other assets, net
|
71,022
|
73,296
|
76,157
|
65,554
|
62,664
|
Goodwill
|
43,265
|
43,265
|
43,265
|
43,265
|
43,265
|
|
$ 1,785,884
|
$ 1,870,309
|
$ 1,893,515
|
$ 1,790,512
|
$ 1,727,115
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Revolving notes
|
$
-
|
$ 75,000
|
$ 163,888
|
$ 50,888
|
$
92,507
|
Accounts
payable and accrued liabilities
|
370,652
|
401,010
|
384,670
|
455,213
|
405,544
|
Deferred
income taxes
|
50,390
|
55,204
|
63,483
|
60,657
|
75,572
|
Deferred
revenue
|
68,158
|
84,362
|
42,351
|
33,836
|
24,209
|
Notes
payable
|
306,808
|
322,539
|
324,668
|
326,429
|
346,279
|
|
|
|
|
|
|
Total
equity - Greenbrier
|
840,086
|
800,940
|
771,945
|
732,838
|
672,396
|
Noncontrolling interest
|
149,790
|
131,254
|
142,510
|
130,651
|
110,608
|
Total
equity
|
989,876
|
932,194
|
914,455
|
863,489
|
783,004
|
|
$ 1,785,884
|
$ 1,870,309
|
$ 1,893,515
|
$ 1,790,512
|
$ 1,727,115
|
THE GREENBRIER
COMPANIES, INC.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(In thousands,
except per share amounts, unaudited)
|
|
|
|
|
Three Months
Ended
May
31,
|
Nine Months
Ended
May
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Revenue
|
|
|
|
|
|
|
|
|
Manufacturing
|
$
458,494
|
|
$
593,376
|
|
$ 1,611,686
|
|
$ 1,478,566
|
|
Wheels
& Parts
|
78,417
|
|
97,407
|
|
247,604
|
|
286,671
|
|
Leasing
& Services
|
75,955
|
|
23,823
|
|
225,044
|
|
74,576
|
|
|
612,866
|
|
714,606
|
|
2,084,334
|
|
1,839,813
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
Manufacturing
|
352,775
|
|
465,658
|
|
1,247,635
|
|
1,184,922
|
|
Wheels
& Parts
|
69,818
|
|
89,645
|
|
224,208
|
|
259,285
|
|
Leasing
& Services
|
63,175
|
|
10,017
|
|
180,737
|
|
32,942
|
|
|
485,768
|
|
565,320
|
|
1,652,580
|
|
1,477,149
|
|
|
|
|
|
|
|
|
|
|
Margin
|
127,098
|
|
149,286
|
|
431,754
|
|
362,664
|
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expense
|
43,280
|
|
45,595
|
|
118,073
|
|
112,223
|
|
Net gain on
disposition of equipment
|
(311)
|
|
(720)
|
|
(11,326)
|
|
(924)
|
|
Earnings from
operations
|
84,129
|
|
104,411
|
|
325,007
|
|
251,365
|
|
|
|
|
|
|
|
|
|
|
Other
costs
|
|
|
|
|
|
|
|
|
Interest
and foreign exchange
|
3,712
|
|
4,285
|
|
10,565
|
|
9,355
|
|
Earnings before
income tax and earnings from unconsolidated affiliates
|
80,417
|
|
100,126
|
|
314,442
|
|
242,010
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(22,449)
|
|
(30,783)
|
|
(92,902)
|
|
(76,209)
|
|
Earnings before
earnings from unconsolidate affiliates
|
57,968
|
|
69,343
|
|
221,540
|
|
165,801
|
|
|
|
|
|
|
|
|
|
|
Earnings from
unconsolidated affiliates
|
1,564
|
|
982
|
|
2,921
|
|
1,552
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
59,532
|
|
70,325
|
|
224,461
|
|
167,353
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to noncontrolling interest
|
(24,180)
|
|
(27,514)
|
|
(74,808)
|
|
(41,405)
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Greenbrier
|
$
35,352
|
|
$
42,811
|
|
$ 149,653
|
|
$ 125,948
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share:
|
$
1.22
|
|
$
1.54
|
|
$
5.13
|
|
$
4.58
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share:
|
$
1.12
|
|
$
1.33
|
|
$
4.67
|
|
$
3.91
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares:
|
|
|
|
|
|
|
|
|
Basic
|
29,059
|
|
27,842
|
|
29,182
|
|
27,514
|
|
Diluted
|
32,342
|
|
33,000
|
|
32,475
|
|
33,262
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share:
|
$
0.20
|
|
$
0.15
|
|
$
0.60
|
|
$
0.45
|
|
THE GREENBRIER
COMPANIES, INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In thousands,
unaudited)
|
|
|
|
|
|
Nine Months
Ended
May
31,
|
|
|
2016
|
|
2015
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net earnings
|
|
$
224,461
|
|
$
167,353
|
|
Adjustments to reconcile net earnings to net cash provided
by operating
activities:
|
|
|
|
|
|
Deferred income taxes
|
|
(10,143)
|
|
(5,245)
|
|
Depreciation and amortization
|
|
41,681
|
|
33,258
|
|
Net gain on disposition of equipment
|
|
(11,326)
|
|
(924)
|
|
Stock based compensation
expense
|
|
19,055
|
|
13,176
|
|
Noncontrolling interest
adjustments
|
|
837
|
|
20,371
|
|
Other
|
|
564
|
|
1,008
|
|
(Increase) decrease in assets:
|
|
|
|
|
|
Accounts receivable, net
|
|
(14,333)
|
|
(8,769)
|
|
Inventories
|
|
(15,346)
|
|
(124,906)
|
|
Leased railcars for syndication
|
|
28,823
|
|
(90,914)
|
|
Other
|
|
(5,191)
|
|
(1,666)
|
|
Increase (decrease) in
liabilities:
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
(88,707)
|
|
23,135
|
|
Deferred revenue
|
|
24,303
|
|
3,680
|
|
Net cash provided by operating activities
|
|
194,678
|
|
29,557
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Proceeds from sales of assets
|
|
88,707
|
|
4,628
|
|
Capital expenditures
|
|
(51,707)
|
|
(75,892)
|
|
Decrease in restricted cash
|
|
200
|
|
228
|
|
Investment in and advances to unconsolidated affiliates
|
|
(9,088)
|
|
(29,923)
|
|
Cash distribution from unconsolidated affiliates
|
|
5,338
|
|
715
|
|
Net cash provided by (used in) investing activities
|
|
33,450
|
|
(100,244)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Net change in revolving notes with maturities of 90 days or
less
|
|
(49,000)
|
|
73,000
|
|
Proceeds
from revolving notes with maturities longer than 90 days
|
|
-
|
|
42,563
|
|
Repayments of revolving notes with maturities longer than 90
days
|
|
(1,888)
|
|
(36,137)
|
|
Repayments of notes payable
|
|
(19,461)
|
|
(5,504)
|
|
Debt
issuance costs
|
|
(4,160)
|
|
-
|
|
Repurchase of stock
|
|
(33,498)
|
|
(48,451)
|
|
Dividends
|
|
(17,362)
|
|
(12,069)
|
|
Decrease in restricted cash
|
|
-
|
|
11,000
|
|
Cash
distribution to joint venture partner
|
|
(62,710)
|
|
(12,489)
|
|
Investment by joint venture partner
|
|
5,400
|
|
-
|
|
Excess
tax benefit from restricted stock awards
|
|
2,786
|
|
2,964
|
|
Other
|
|
(7)
|
|
(248)
|
|
Net cash
provided by (used in) financing activities
|
|
(179,900)
|
|
14,629
|
|
Effect of exchange
rate changes
|
|
(6,718)
|
|
(6,075)
|
|
Increase
(decrease) in cash and cash equivalents
|
|
41,510
|
|
(62,133)
|
|
Cash and cash
equivalents
|
|
|
|
|
|
Beginning of period
|
|
172,930
|
|
184,916
|
|
End of period
|
|
$
214,440
|
|
$
122,783
|
|
THE GREENBRIER
COMPANIES, INC.
|
SUPPLEMENTAL
INFORMATION
|
(In
thousands, except per share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
Operating Results
by Quarter for 2016 are as follows:
|
|
First
|
|
Second
|
|
Third
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
Manufacturing
|
$
698,661
|
|
$ 454,531
|
|
$
458,494
|
|
$ 1,611,686
|
|
Wheels
& Parts
|
78,729
|
|
90,458
|
|
78,417
|
|
247,604
|
|
Leasing
& Services
|
24,999
|
|
124,090
|
|
75,955
|
|
225,044
|
|
|
802,389
|
|
669,079
|
|
612,866
|
|
2,084,334
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
Manufacturing
|
533,033
|
|
361,827
|
|
352,775
|
|
1,247,635
|
|
Wheels
& Parts
|
73,002
|
|
81,388
|
|
69,818
|
|
224,208
|
|
Leasing
& Services
|
11,589
|
|
105,973
|
|
63,175
|
|
180,737
|
|
|
617,624
|
|
549,188
|
|
485,768
|
|
1,652,580
|
|
|
|
|
|
|
|
|
|
|
Margin
|
184,765
|
|
119,891
|
|
127,098
|
|
431,754
|
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expense
|
36,549
|
|
38,244
|
|
43,280
|
|
118,073
|
|
Net gain on
disposition of equipment
|
(269)
|
|
(10,746)
|
|
(311)
|
|
(11,326)
|
|
Earnings from
operations
|
148,485
|
|
92,393
|
|
84,129
|
|
325,007
|
|
|
|
|
|
|
|
|
|
|
Other
costs
|
|
|
|
|
|
|
|
|
Interest
and foreign exchange
|
5,436
|
|
1,417
|
|
3,712
|
|
10,565
|
|
Earnings before
income tax and earnings from
unconsolidated
affiliates
|
143,049
|
|
90,976
|
|
80,417
|
|
314,442
|
|
Income tax
expense
|
(44,719)
|
|
(25,734)
|
|
(22,449)
|
|
(92,902)
|
|
Earnings before
earnings from unconsolidated
affiliates
|
98,330
|
|
65,242
|
|
57,968
|
|
221,540
|
|
Earnings from
unconsolidated affiliates
|
383
|
|
974
|
|
1,564
|
|
2,921
|
|
Net
earnings
|
98,713
|
|
66,216
|
|
59,532
|
|
224,461
|
|
Net earnings
attributable to noncontrolling
interest
|
(29,280)
|
|
(21,348)
|
|
(24,180)
|
|
(74,808)
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Greenbrier
|
$
69,433
|
|
$ 44,868
|
|
$
35,352
|
|
$
149,653
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share (1)
|
$
2.36
|
|
$
1.54
|
|
$
1.22
|
|
$
5.13
|
|
Diluted earnings
per common share (1)
|
$
2.15
|
|
$
1.41
|
|
$
1.12
|
|
$
4.67
|
|
|
|
(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
May 31, 2016:
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Earnings (loss) from
operations
|
|
|
External
|
|
Intersegment
|
|
Total
|
|
External
|
|
Intersegment
|
|
Total
|
|
Manufacturing
|
$
458,494
|
|
$
5,595
|
|
$
464,089
|
|
$
92,713
|
|
$
923
|
|
$ 93,636
|
|
Wheels &
Parts
|
78,417
|
|
10,058
|
|
88,475
|
|
5,811
|
|
711
|
|
6,522
|
|
Leasing &
Services
|
75,955
|
|
601
|
|
76,556
|
|
8,298
|
|
601
|
|
8,899
|
|
Eliminations
|
-
|
|
(16,254)
|
|
(16,254)
|
|
-
|
|
(2,235)
|
|
(2,235)
|
|
Corporate
|
-
|
|
-
|
|
-
|
|
(22,693)
|
|
-
|
|
(22,693)
|
|
|
$
612,866
|
|
$
-
|
|
$
612,866
|
|
$
84,129
|
|
$
-
|
|
$ 84,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
|
|
|
|
|
|
|
May 31,
2016
|
|
February
29,
2016
|
|
(In
thousands)
|
|
|
Manufacturing
|
$
641,090
|
|
$
624,961
|
|
Wheels &
Parts
|
301,474
|
|
307,724
|
|
Leasing &
Services
|
523,989
|
|
551,763
|
|
Unallocated
|
319,331
|
|
385,861
|
|
|
$
1,785,884
|
|
$
1,870,309
|
|
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
|
|
|
May 31,
February
29,
2016
2016
|
|
|
Revenue
|
$
95,700
|
|
$
97,700
|
|
|
Earnings from
operations
|
$
3,000
|
|
$
3,600
|
|
|
Total
assets
|
$
255,400
|
|
$
247,700
|
|
|
|
|
|
|
|
THE GREENBRIER
COMPANIES, INC.
|
SUPPLEMENTAL
INFORMATION
|
(In thousands,
excluding backlog and delivery units, unaudited)
|
|
Reconciliation of
Net earnings to Adjusted EBITDA
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
May 31,
2016
|
|
February
29,
2016
|
|
|
Net
earnings
|
$
59,532
|
|
$
66,216
|
|
|
Interest and foreign
exchange
|
3,712
|
|
1,417
|
|
|
Income tax
expense
|
22,449
|
|
25,734
|
|
|
Depreciation and
amortization
|
13,839
|
|
14,868
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
99,532
|
|
$
108,235
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
Ended
May 31,
2016
|
|
|
Backlog Activity
(units)
|
|
|
|
|
|
Beginning
backlog
|
34,100
|
|
|
Orders
received
|
1,700
|
|
|
Production held as
Leased railcars for syndication
|
(1,100)
|
|
|
Production sold
directly to third parties
|
(3,500)
|
|
|
Ending
backlog
|
31,200
|
|
|
|
|
|
|
Delivery
Information (units)
|
|
|
|
Production sold
directly to third parties
|
3,500
|
|
|
Sales of Leased
railcars for syndication
|
800
|
|
|
Total
deliveries
|
4,300
|
|
|
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
|
|
May 31,
2016
|
February
29,
2016
|
Weighted average
basic common shares outstanding (1)
|
29,059
|
29,098
|
Dilutive effect of
convertible notes (2)
|
3,224
|
3,203
|
Dilutive effect of
performance awards (3)
|
59
|
59
|
Weighted average
diluted common shares outstanding
|
32,342
|
32,360
|
|
|
|
(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
|
|
May 31,
2016
|
February
29,
2016
|
Net earnings
attributable to Greenbrier
|
$
35,352
|
$
44,868
|
Add back:
|
|
|
Interest and debt
issuance costs on the 2018 Convertible notes, net of tax
|
733
|
733
|
Earnings before
interest and debt issuance costs on convertible notes
|
$
36,085
|
$
45,601
|
Weighted average
diluted common shares outstanding
|
32,342
|
32,360
|
|
|
|
Diluted earnings per
share
|
$
1.12
|
$
1.41
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/greenbrier-reports-third-quarter-results-300294422.html
SOURCE The Greenbrier Companies, Inc. (GBX)