LAKE OSWEGO, Ore., Oct. 25, 2016 /PRNewswire/ -- The Greenbrier
Companies, Inc. (NYSE: GBX) today reported financial results for
its fourth fiscal quarter and full year ended August 31, 2016.
Fourth Quarter Highlights
- Net earnings attributable to Greenbrier for the quarter were
$33.6 million, or $1.06 per diluted share, on revenue of
$595.2 million.
- Adjusted EBITDA for the quarter was $104.4 million, or 17.5% of revenue.
- Diversified orders for 2,300 new railcars were received during
this quarter, valued at over $200
million, or an average price of approximately $87,000 per railcar.
- New railcar backlog as of August 31,
2016 was 27,500 units with an estimated value of
$3.19 billion (average unit sale
price of $116,000). Backlog reflects
a 1,200 unit reduction resulting from customer settlements that
yield favorable economic and other considerations.
- New railcar deliveries totaled 4,600 units for the quarter,
compared to 4,300 units for the quarter ended May 31, 2016.
- Marine backlog as of August 31,
2016 was approximately $114
million.
- Board declared a quarterly dividend of $0.21 per share, payable on December 1, 2016 to shareholders as of
November 10, 2016.
Fiscal Year 2016 Highlights
- Net earnings were $183.2 million,
or $5.73 per diluted share, on record
revenue of $2.68 billion.
- Record Adjusted EBITDA was $474.0
million, or 17.7% of revenue, compared to 16.7% of revenue
in fiscal 2015.
- New railcar deliveries totaled 20,300 units.
- Orders totaled 7,500 units valued over $700 million across a broad range of railcar
types.
- Cash provided by operating activities increased 72% to over
$330 million.
- Net Funded Debt : LTM EBITDA ratio improved to 0.2x from 0.5x
in fiscal 2015.
- Nearly $57 million returned to
shareholders through dividend and share repurchases.
Progress on Longer Term Financial Goals
- Fourth quarter aggregate gross margin, was 20.1%, consistent
with our goal of at least 20% gross margin by the second half of
fiscal 2016.
- We achieved an ROIC of 24.8% in fiscal 2016, in line with our
target of 25.0%, and an improvement from the 23.7% achieved in
fiscal 2015.
William A. Furman, Chairman and
CEO, said, "We delivered strong results for the fourth quarter and
fiscal 2016. We ended the year with a strong balance sheet, ample
liquidity and very little net debt. This positions Greenbrier to
continue to invest internationally in high ROIC markets, as well as
successfully navigate through less robust North American market
conditions. We addressed industry challenges during fiscal 2016 as
we encountered a weaker market in North
America. Our employees successfully executed our plan for
the year. We appreciate their hard work along with the confidence
and trust of our customers as we have diversified and grown
internationally."
Furman continued, "Entering fiscal 2017, our diversified backlog
provides us with strong visibility, while we remain adaptable and
prepared for market recovery and growth. Recently, we worked with
customers to resolve commercial terms related to 1,200 sand cars.
Under these arrangements, Greenbrier received meaningful monetary
and other valuable economic consideration. Our deep customer
relationships are advantageous in the current market conditions as
we work to achieve mutually beneficial solutions."
"Internationally, we are creating a global network that enables
Greenbrier to capture share in emerging railcar markets where
freight car markets are stronger. These include the nations of the
Gulf Cooperation Council (GCC), Africa, Eurasia and Latin America. We are making new investments
that extend our core competency in freight railcar building,
engineering and aftermarket services for all railroad gauges in
these new markets." Furman added, "In August, we acquired a 19.5%
ownership stake in the railcar casting operations of Amsted-Maxion
Cruzeiro which raised our direct and indirect interest in railcar
manufacturer Greenbrier-Maxion to 35%, and expands our
manufacturing presence in Brazil.
In September, we began fulfillment of the 1,200 tank car order
placed by Saudi Railway Company (SAR) in early fiscal 2016. Most
recently, we announced the formation of Greenbrier-Astra Rail that
will create a world-class European railcar business, capitalizing
on demand in Western Europe where
the aging railcar fleet will enter a replacement cycle in the next
few years. It provides a strong value-added platform for our
customers in Western Europe, as
well as a launch pad for other business in Eurasia and the
GCC."
Furman concluded, "In the year ahead, a moderating railcar
replacement cycle in North America
will favorably position well-capitalized companies like Greenbrier
to seize opportunities in the market, which often emerge
suddenly. We remain committed to our overall strategy of
investing for future growth and generating long-term value for our
shareholders with an emphasis on solid ROIC."
Business Outlook
Based on current business trends, industry forecasts and
production schedules for fiscal 2017, Greenbrier believes:
- Deliveries will be approximately 14,000 – 16,000 units
- Revenue will be $2.0 –
$2.4 billion
- Diluted EPS will be in the range of $3.25 – $3.75
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
|
Q4
FY16
|
Q3
FY16
|
Sequential
Comparison – Main Drivers
|
Revenue
|
$595.2M
|
$612.9M
|
Down 2.9% primarily
due to lower volume of sales from acquired railcar
portfolio
|
Gross
margin
|
20.1%
|
20.7%
|
Down 60 bps primarily
due to product mix changes and lower scrap pricing
|
Selling
and
administrative
expense
|
$40.6M
|
$43.3M
|
Down 6.2% due to Q3
including higher long-term incentive compensation
|
Net gain on
disposition
of
equipment
|
$4.5M
|
$0.3M
|
Increase primarily
reflects insurance recovery proceeds from 2015 losses
|
Adjusted
EBITDA
|
$104.4M
|
$99.5M
|
Stronger operating
cash flow
|
Effective tax
rate
|
24.1%
|
27.9%
|
Reflects a change in
the geographic mix of earnings
|
Net earnings
attributable
to noncontrolling
interest
|
$26.8M
|
$24.2M
|
Driven by timing of
deliveries and higher margin from our GIMSA JV
|
Net earnings
attributable
to
Greenbrier
|
$33.6M
|
$35.4M
|
|
Diluted
EPS
|
$1.06
|
$1.12
|
|
Segment Summary
|
Q4
FY16
|
Q3
FY16
|
Sequential
Comparison – Main Drivers
|
Manufacturing
|
Revenue
|
$484.6M
|
$458.5M
|
Up 5.7% due to higher
deliveries
|
Gross
margin
|
21.0%
|
23.1%
|
Down 210 bps
primarily due to a change in product mix
|
Operating
margin (1)
|
18.5%
|
20.2%
|
|
Deliveries
|
4,600
|
4,300
|
|
Wheels &
Parts
|
Revenue
|
$74.8M
|
$78.4M
|
Down 4.6% primarily
attributable to lower wheel and component volumes
|
Gross
margin
|
7.0%
|
11.0%
|
Down 400 bps
primarily due to a less favorable product mix and continued
challenging operating environment
|
Operating
margin (1)
|
5.7%
|
7.4%
|
|
Leasing &
Services
|
Revenue
|
$35.8M
|
$76.0M
|
Decline due to lower
volume of sales from acquired railcar portfolio
|
Gross
margin
|
35.5%
|
16.8%
|
Up due to lower
volume of sales from acquired railcar portfolio, which is
dilutive
|
Operating
margin (1) (2)
|
25.3%
|
10.9%
|
|
Lease fleet
utilization
|
91.0%
|
94.9%
|
Impacted by off-lease
tank cars; placed on lease subsequent
to quarter
end
|
|
|
(1)
|
See supplemental
segment information on page 12 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 fourth
quarter 2016 results. In conjunction with this news release,
Greenbrier has posted a supplemental earnings presentation to our
website. Teleconference details are as follows:
- October 25, 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
international supplier of equipment and services to the freight
rail transportation markets. Greenbrier designs, builds and markets
freight railcars in North America
and Europe, we build freight
railcars and rail castings in Brazil through a strategic partnership, and
build and market marine barges in North
America. Recently, through our European manufacturing
operations, we also began delivery of US-designed tank cars in
Saudi Arabia. In October 2016, we entered into an agreement with
Astra Rail Management GmbH to form a new company, Greenbrier-Astra
Rail, which will create an end-to-end, Europe-based freight railcar manufacturing,
engineering and repair business. We expect this combination will be
completed during 2017. We are a leading provider of wheel services,
parts, leasing and other services to the railroad and related
transportation industries in North
America and a provider of freight railcar repair,
refurbishment and retrofitting services in North America through a joint venture
partnership with Watco Companies, LLC. Through other joint ventures
we produce rail castings, tank heads and other railcar components.
Greenbrier owns a lease fleet of over 9,000 railcars and performs
management services for over 268,000 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, available
manufacturing capacity, restructuring plans, new railcar delivery
volumes and schedules, 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; 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, 2016, 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)
|
|
|
|
August 31, 2016
|
May 31,
2016
|
February
29, 2016
|
November
30, 2015
|
August 31, 2015
|
Assets
|
|
|
|
|
|
Cash and
cash equivalents
|
$
222,679
|
$
214,440
|
$
283,541
|
$
197,633
|
$
172,930
|
Restricted cash
|
24,279
|
8,669
|
8,877
|
9,818
|
8,869
|
Accounts
receivable, net
|
232,517
|
213,510
|
228,072
|
237,213
|
196,029
|
Inventories
|
365,805
|
458,068
|
421,243
|
444,023
|
445,535
|
Leased
railcars for syndication
|
144,932
|
136,812
|
179,975
|
238,911
|
212,534
|
Equipment on operating leases, net
|
306,266
|
232,791
|
235,171
|
252,641
|
255,391
|
Property, plant and equipment, net
|
329,990
|
318,010
|
310,019
|
307,196
|
303,135
|
Investment in unconsolidated affiliates
|
98,682
|
89,297
|
86,850
|
86,658
|
87,270
|
Intangibles and other assets, net
|
69,475
|
71,022
|
73,296
|
76,157
|
65,554
|
Goodwill
|
43,265
|
43,265
|
43,265
|
43,265
|
43,265
|
|
$
1,837,890
|
$
1,785,884
|
$
1,870,309
|
$
1,893,515
|
$
1,790,512
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Revolving notes
|
$
-
|
$
-
|
$
75,000
|
$
163,888
|
$
50,888
|
Accounts
payable and accrued liabilities
|
369,754
|
370,652
|
401,010
|
384,670
|
455,213
|
Deferred
income taxes
|
51,619
|
50,390
|
55,204
|
63,483
|
60,657
|
Deferred
revenue
|
95,721
|
68,158
|
84,362
|
42,351
|
33,836
|
Notes
payable
|
303,969
|
306,808
|
322,539
|
324,668
|
326,429
|
|
|
|
|
|
|
Total
equity - Greenbrier
|
874,311
|
840,086
|
800,940
|
771,945
|
732,838
|
Noncontrolling interest
|
142,516
|
149,790
|
131,254
|
142,510
|
130,651
|
Total
equity
|
1,016,827
|
989,876
|
932,194
|
914,455
|
863,489
|
|
$
1,837,890
|
$
1,785,884
|
$
1,870,309
|
$
1,893,515
|
$
1,790,512
|
THE GREENBRIER
COMPANIES, INC.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(In thousands,
except per share amounts)
|
|
|
|
Years ending
August 31,
|
|
|
2016
|
|
2015
|
|
2014
|
|
Revenue
|
|
|
|
|
|
|
Manufacturing
|
$
2,096,331
|
|
$
2,136,051
|
|
$
1,624,916
|
|
Wheels
& Parts
|
322,395
|
|
371,237
|
|
495,627
|
|
Leasing
& Services
|
260,798
|
|
97,990
|
|
83,419
|
|
|
2,679,524
|
|
2,605,278
|
|
2,203,962
|
|
Cost of
revenue
|
|
|
|
|
|
|
Manufacturing
|
1,630,554
|
|
1,691,414
|
|
1,374,008
|
|
Wheels
& Parts
|
293,751
|
|
334,680
|
|
463,938
|
|
Leasing
& Services
|
203,782
|
|
41,831
|
|
43,796
|
|
|
2,128,087
|
|
2,067,925
|
|
1,881,742
|
|
|
|
|
|
|
|
|
Margin
|
551,437
|
|
537,353
|
|
322,220
|
|
|
|
|
|
|
|
|
Selling and
administrative
|
158,681
|
|
151,791
|
|
125,270
|
|
Net gain on
disposition of equipment
|
(15,796)
|
|
(1,330)
|
|
(15,039)
|
|
Gain on contribution
to joint venture
|
-
|
|
-
|
|
(29,006)
|
|
Restructuring
charges
|
-
|
|
-
|
|
1,475
|
|
Earnings from
operations
|
408,552
|
|
386,892
|
|
239,520
|
|
|
|
|
|
|
|
|
Other
costs
|
|
|
|
|
|
|
Interest and foreign
exchange
|
13,502
|
|
11,179
|
|
18,695
|
|
Earnings before
income tax and earnings from unconsolidated affiliates
|
395,050
|
|
375,713
|
|
220,825
|
|
Income tax
expense
|
(112,322)
|
|
(112,160)
|
|
(72,401)
|
|
Earnings before
earnings from unconsolidated
affiliates
|
282,728
|
|
263,553
|
|
148,424
|
|
Earnings from
unconsolidated affiliates
|
2,096
|
|
1,756
|
|
1,355
|
|
|
|
|
|
|
|
|
Net
earnings
|
284,824
|
|
265,309
|
|
149,779
|
|
Net earnings
attributable to noncontrolling interest
|
(101,611)
|
|
(72,477)
|
|
(37,860)
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Greenbrier
|
$
183,213
|
|
$
192,832
|
|
$
111,919
|
|
|
|
|
|
|
|
|
Basic earnings per
common share:
|
$
6.28
|
|
$
6.85
|
|
$
3.97
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share:
|
$
5.73
|
|
$
5.93
|
|
$
3.44
|
|
|
|
|
|
|
|
|
Weighted average
common shares:
|
|
|
|
|
|
|
Basic
|
29,156
|
|
28,151
|
|
28,164
|
|
Diluted
|
32,468
|
|
33,328
|
|
34,209
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
$
0.81
|
|
$
0.60
|
|
$
0.15
|
|
|
|
|
|
|
|
|
THE GREENBRIER
COMPANIES, INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
Years Ended August
31,
|
|
2016
|
|
2015
|
|
2014
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net earnings
|
$
284,824
|
|
$
265,309
|
|
$
149,779
|
|
Adjustments to reconcile net earnings to net cash
provided by operating
activities:
|
|
|
|
|
|
|
Deferred income taxes
|
(8,935)
|
|
(20,151)
|
|
(4,687)
|
|
Depreciation and amortization
|
63,345
|
|
45,156
|
|
40,422
|
|
Net gain on disposition of equipment
|
(15,796)
|
|
(1,330)
|
|
(15,039)
|
|
Stock based compensation expense
|
24,037
|
|
19,459
|
|
11,285
|
|
Gain on contribution to joint venture
|
-
|
|
-
|
|
(29,006)
|
|
Noncontrolling interest adjustments
|
526
|
|
17,215
|
|
2,774
|
|
Other
|
560
|
|
1,184
|
|
576
|
|
Decrease (increase) in assets:
|
|
|
|
|
|
|
Accounts receivable, net
|
(32,051)
|
|
13,652
|
|
(23,749)
|
|
Inventories
|
53,711
|
|
(143,849)
|
|
(9,675)
|
|
Leased railcars for syndication
|
19,154
|
|
(90,614)
|
|
(57,779)
|
|
Other
|
(16,989)
|
|
575
|
|
(4,069)
|
|
Increase (decrease) in liabilities:
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
(91,428)
|
|
72,419
|
|
63,362
|
|
Deferred revenue
|
50,712
|
|
13,308
|
|
11,713
|
|
Net cash provided by operating activities
|
331,670
|
|
192,333
|
|
135,907
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Proceeds from sales of assets
|
103,715
|
|
5,295
|
|
54,235
|
|
Capital expenditures
|
(139,013)
|
|
(105,989)
|
|
(70,227)
|
|
Decrease (increase) in restricted cash
|
(15,410)
|
|
271
|
|
(333)
|
|
Investment in and advances to unconsolidated affiliates
|
(12,855)
|
|
(34,453)
|
|
(13,753)
|
|
Cash distribution from joint ventures
|
7,855
|
|
3,345
|
|
-
|
|
Net cash used in investing activities
|
(55,708)
|
|
(131,531)
|
|
(30,078)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Net changes in revolving notes with maturities of 90 days or
less
|
(49,000)
|
|
49,000
|
|
-
|
|
Proceeds from revolving notes with maturities longer than 90
days
|
-
|
|
44,451
|
|
37,819
|
|
Repayments of revolving notes with maturities longer than 90
days
|
(1,888)
|
|
(55,644)
|
|
(72,947)
|
|
Proceeds
from issuance of notes payable
|
-
|
|
-
|
|
200,000
|
|
Repayments of notes payable
|
(22,299)
|
|
(7,475)
|
|
(128,797)
|
|
Debt issuance costs
|
(4,161)
|
|
-
|
|
(382)
|
|
Decrease (increase) in restricted cash
|
-
|
|
11,000
|
|
(11,000)
|
|
Repurchase of stock
|
(33,498)
|
|
(69,950)
|
|
(33,583)
|
|
Dividends
|
(23,303)
|
|
(16,491)
|
|
(4,123)
|
|
Cash distribution to joint venture partner
|
(95,092)
|
|
(20,375)
|
|
(5,076)
|
|
Investment by joint venture partner
|
5,400
|
|
-
|
|
419
|
|
Excess tax benefit from restricted stock awards
|
2,813
|
|
2,908
|
|
109
|
|
Other
|
(887)
|
|
(248)
|
|
-
|
|
Net cash used in financing activities
|
(221,915)
|
|
(62,824)
|
|
(17,561)
|
|
Effect of exchange rate changes
|
(4,298)
|
|
(9,964)
|
|
(787)
|
|
Increase (decrease) in cash and cash equivalents
|
49,749
|
|
(11,986)
|
|
87,481
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
Beginning of
period
|
172,930
|
|
184,916
|
|
97,435
|
|
End of
period
|
$
222,679
|
|
$
172,930
|
|
$
184,916
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Fourth
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
$
698,661
|
|
$
454,531
|
|
$
458,494
|
|
$
484,645
|
|
$
2,096,331
|
|
Wheels
& Parts
|
78,729
|
|
90,458
|
|
78,417
|
|
74,791
|
|
322,395
|
|
Leasing
& Services
|
24,999
|
|
124,090
|
|
75,955
|
|
35,754
|
|
260,798
|
|
|
802,389
|
|
669,079
|
|
612,866
|
|
595,190
|
|
2,679,524
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
533,033
|
|
361,827
|
|
352,775
|
|
382,919
|
|
1,630,554
|
|
Wheels
& Parts
|
73,002
|
|
81,388
|
|
69,818
|
|
69,543
|
|
293,751
|
|
Leasing
& Services
|
11,589
|
|
105,973
|
|
63,175
|
|
23,045
|
|
203,782
|
|
|
617,624
|
|
549,188
|
|
485,768
|
|
475,507
|
|
2,128,087
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin
|
184,765
|
|
119,891
|
|
127,098
|
|
119,683
|
|
551,437
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expense
|
36,549
|
|
38,244
|
|
43,280
|
|
40,608
|
|
158,681
|
|
Net gain on
disposition of equipment
|
(269)
|
|
(10,746)
|
|
(311)
|
|
(4,470)
|
|
(15,796)
|
|
Earnings from
operations
|
148,485
|
|
92,393
|
|
84,129
|
|
83,545
|
|
408,552
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
costs
|
|
|
|
|
|
|
|
|
|
|
Interest and foreign
exchange
|
5,436
|
|
1,417
|
|
3,712
|
|
2,937
|
|
13,502
|
|
Earnings before
income tax and earnings (loss) from unconsolidated
affiliates
|
143,049
|
|
90,976
|
|
80,417
|
|
80,608
|
|
395,050
|
|
Income tax
expense
|
(44,719)
|
|
(25,734)
|
|
(22,449)
|
|
(19,420)
|
|
(112,322)
|
|
Earnings before
earnings (loss) from unconsolidated affiliates
|
98,330
|
|
65,242
|
|
57,968
|
|
61,188
|
|
282,728
|
|
Earnings (loss) from
unconsolidated affiliates
|
383
|
|
974
|
|
1,564
|
|
(825)
|
|
2,096
|
|
Net
earnings
|
98,713
|
|
66,216
|
|
59,532
|
|
60,363
|
|
284,824
|
|
Net earnings
attributable to noncontrolling interest
|
(29,280)
|
|
(21,348)
|
|
(24,180)
|
|
(26,803)
|
|
(101,611)
|
|
Net earnings
attributable to Greenbrier
|
$
69,433
|
|
$
44,868
|
|
$
35,352
|
|
$
33,560
|
|
$
183,213
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share (1)
|
$
2.36
|
|
$
1.54
|
|
$
1.22
|
|
$
1.15
|
|
$
6.28
|
|
Diluted earnings
per common share (1)
|
$
2.15
|
|
$
1.41
|
|
$
1.12
|
|
$
1.06
|
|
$
5.73
|
|
|
|
(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 before
earnings (loss) from unconsolidated affiliates
|
35,227
|
|
61,231
|
|
69,343
|
|
97,752
|
|
263,553
|
|
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 using the treasury stock
method 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
August 31, 2016:
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Earnings (loss) from
operations
|
|
|
External
|
|
Intersegment
|
|
Total
|
|
External
|
|
Intersegment
|
|
Total
|
|
Manufacturing
|
$
484,645
|
|
$
83,563
|
|
$
568,208
|
|
$
89,879
|
|
$
23,358
|
|
$
113,237
|
|
Wheels &
Parts
|
74,791
|
|
8,362
|
|
83,153
|
|
4,228
|
|
447
|
|
4,675
|
|
Leasing &
Services
|
35,754
|
|
2,657
|
|
38,411
|
|
9,055
|
|
2,657
|
|
11,712
|
|
Eliminations
|
-
|
|
(94,582)
|
|
(94,582)
|
|
-
|
|
(26,462)
|
|
(26,462)
|
|
Corporate
|
-
|
|
-
|
|
-
|
|
(19,617)
|
|
-
|
|
(19,617)
|
|
|
$
595,190
|
|
$
-
|
|
$
595,190
|
|
$
83,545
|
|
$
-
|
|
$
83,545
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
August 31,
|
|
May 31,
|
|
|
2016
|
|
2016
|
|
Manufacturing
|
$
701,296
|
|
$
641,090
|
|
Wheels &
Parts
|
275,599
|
|
301,474
|
|
Leasing &
Services
|
518,263
|
|
523,989
|
|
Unallocated
|
342,732
|
|
319,331
|
|
|
$
1,837,890
|
|
$
1,785,884
|
|
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
|
|
|
August
31, 2016
|
|
May
31, 2016
|
|
Revenue
|
$
84,100
|
|
$
95,700
|
|
Earnings (loss) from
operations
|
$
(500)
|
|
$
3,000
|
|
Total
assets
|
$
247,600
|
|
$
255,400
|
|
|
|
|
|
|
THE GREENBRIER
COMPANIES, INC.
|
SUPPLEMENTAL
INFORMATION
|
(In thousands,
excluding backlog and delivery units, unaudited)
|
|
Reconciliation of
Net earnings to Adjusted EBITDA
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
|
|
August 31,
2016
|
|
May
31, 2016
|
|
August 31,
2016
|
Net
earnings
|
$
60,363
|
|
$
59,532
|
|
$
284,824
|
Interest and foreign
exchange
|
2,937
|
|
3,712
|
|
13,502
|
Income tax
expense
|
19,420
|
|
22,449
|
|
112,322
|
Depreciation and
amortization
|
21,664
|
|
13,839
|
|
63,345
|
Adjusted
EBITDA
|
$
104,384
|
|
$
99,532
|
|
$
473,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended August 31,
2016
|
|
Year Ended August
31,
2016
|
|
Backlog Activity
(units)
|
|
|
|
|
|
|
Beginning
backlog
|
31,200
|
|
41,300
|
|
Orders
received
|
2,300
|
|
7,500
|
|
Orders
removed
|
(1,200)
|
|
(1,200)
|
|
Production held as
Leased railcars for syndication
|
(800)
|
|
(3,600)
|
|
Production sold
directly to third parties
|
(4,000)
|
|
(16,500)
|
|
Ending
backlog
|
27,500
|
|
27,500
|
|
|
|
|
|
|
Delivery
Information (units)
|
|
|
|
|
Production sold
directly to third parties
|
4,000
|
|
16,500
|
|
Sales of Leased
railcars for syndication
|
600
|
|
3,800
|
|
Total
deliveries
|
4,600
|
|
20,300
|
|
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
|
|
August
31, 2016
|
May
31, 2016
|
Weighted average
basic common shares outstanding (1)
|
29,079
|
29,059
|
Dilutive effect of
convertible notes (2)
|
3,250
|
3,224
|
Dilutive effect of
performance awards (3)
|
118
|
59
|
Weighted average
diluted common shares outstanding
|
32,447
|
32,342
|
|
|
|
|
|
(1)
|
Restricted stock
grants and restricted stock units, including some grants subject to
certain performance criteria, are included in weighted average
basic common shares outstanding when the Company is in a net
earnings position.
|
(2)
|
The dilutive effect
of the 2018 Convertible notes are included in the Weighted average
diluted common shares outstanding as they were considered dilutive
under the "if converted" method as further discussed
below.
|
(3)
|
Restricted
stock units subject to performance criteria, for which actual
levels of performance above target have been achieved, and are
included in Weighted average diluted shares outstanding when the
company is in a net earnings position.
|
Diluted earnings per share was calculated using the more
dilutive of two approaches. The first approach includes the
dilutive effect, 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
|
|
August 31,
2016
|
|
May 31,
2016
|
Net earnings
attributable to Greenbrier
|
$
33,560
|
|
$
35,352
|
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
|
$
34,293
|
|
$
36,085
|
Weighted average
diluted common shares outstanding
|
32,447
|
|
32,342
|
|
|
|
|
Diluted earnings per
share
|
$
1.06
|
|
$
1.12
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/greenbrier-reports-fourth-quarter-results-300350327.html
SOURCE The Greenbrier Companies, Inc. (GBX)