LAKE OSWEGO, Ore., Jan. 6, 2017 /PRNewswire/ -- The Greenbrier
Companies Inc., (NYSE: GBX) today reported financial results for
its first fiscal quarter ended November 30,
2016.
First Quarter Highlights
- Net earnings attributable to Greenbrier for the quarter were
$25.0 million, or $0.79 per diluted share, on revenue of
$552.3 million.
- Adjusted EBITDA for the quarter was $85.7 million, or 15.5% of revenue.
- Cash provided by operating activities totaled $29.0 million for the quarter.
- Diversified orders for 2,400 new railcars were received during
this quarter, valued at over $230
million, or an average price of approximately $98,000 per railcar.
- New railcar backlog as of November 30,
2016 was 25,800 units with an estimated value of
$2.97 billion (average unit sale
price of $115,000). Included in
backlog are 3,800 covered hopper railcars for use in energy related
sand transportation, of which 2,500 units, scheduled for production
in 2018, are for a customer who is negotiating with us to modify
the order.
- New railcar deliveries totaled 4,000 units for the quarter,
compared to 4,600 units for the quarter ended August 31, 2016.
- Marine backlog as of November 30,
2016 was approximately $103
million.
- Board declares a quarterly dividend of $0.21 per share, payable on February 16, 2017 to shareholders as of
January 26, 2017.
- Greenbrier is negotiating to exercise its option to increase
its equity position in Brazilian railcar manufacturing joint
venture, Greenbrier-Maxion, to 60%.
William A. Furman, Chairman and
CEO, said, "Greenbrier's fiscal 2017 is off to a strong start with
solid financial performance delivered during a demanding first
quarter. We had healthy manufacturing margins on lower deliveries,
a testament to the strength of our manufacturing and leasing
operations. We continue to execute on our strategy of focusing on
our core North American operations while pursuing targeted
investments in international markets."
Furman continued, "Brazil's
economic, business and political conditions have improved and
forecasts indicate continued GDP improvement in 2017. Greenbrier's
operations in Brazil and our
relationship with our partners continue to grow. For the
quarter ended November 30, 2016, our
Brazilian railcar manufacturing joint venture Greenbrier-Maxion
received orders and awards for over 2,000 railcars, which are not
included in Greenbrier's reported orders. We have accelerated
discussions to increase our interest in the Brazil operations with an incremental
investment of nearly $24 million,
which will be used to pay down high cost debt. Our facilities in
Brazil include the largest railcar
assembly plant in South America
along with a castings facility. The need for high quality
transportation equipment is poised to grow based in part on railcar
fleet demographics with a high percentage of the fleet being older
or obsolete."
Furman added, "As we pursue investments in growth opportunities,
our solid financial returns in our core business in North America and internationally along with
our strong balance sheet remain critical. These provide us the
flexibility to compete effectively today while continuing to invest
domestically and internationally for tomorrow. In addition, changes
in the global trade environment will require robust risk
management."
Furman concluded, "Based on our first quarter results, regular
communications with customers and current production schedules in
North America, we are reaffirming
our guidance for the year. We will continue to seek opportunities
to diversify by accessing new global markets, while streamlining
our cost structures to maximize profitability in North America."
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 to $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
|
Q1
FY17
|
Q4
FY16
|
Sequential
Comparison – Main Drivers
|
Revenue
|
$552.3M
|
$595.2M
|
Down 7.2% primarily
due to fewer deliveries
|
Gross
margin
|
20.4%
|
20.1%
|
Up 30 bps due to
product mix shifts
|
Selling and
administrative expense
|
$41.2M
|
$40.6M
|
Up 1.5% due to
employee related costs including long-term incentive compensation
and increased legal and consulting costs
|
Gain on
disposition of
equipment
|
$1.1M
|
$4.5M
|
Decrease reflects
more normalized levels; Q4 included insurance recovery proceeds
from 2015 fire losses
|
Adjusted
EBITDA
|
$85.7M
|
$104.4M
|
Lower revenue and
operating margin
|
Effective tax
rate
|
28.7%
|
24.1%
|
Reflects a change in
the geographic mix of earnings
|
Loss from
unconsolidated affiliates
|
($2.6M)
|
($0.8M)
|
Challenging
after-markets operating environment in North America and high debt
costs in Brazil
|
Net earnings
attributable to noncontrolling
interest
|
$23.0M
|
$26.8M
|
Change driven
primarily by timing of deliveries from our GIMSA JV
|
Net earnings
attributable to
Greenbrier
|
$25.0M
|
$33.6M
|
|
Diluted
EPS
|
$0.79
|
$1.06
|
|
Segment Summary
|
Q1
FY17
|
Q4
FY16
|
Sequential
Comparison – Main Drivers
|
Manufacturing
|
Revenue
|
$454.0M
|
$484.6M
|
Reflects fewer
deliveries as production rates have slowed offset somewhat by
marine activity
|
Gross
margin
|
21.5%
|
21.0%
|
Up 50 bps primarily
due to product mix shifts
|
Operating
margin (1)
|
18.4%
|
18.5%
|
|
Deliveries
|
4,000
|
4,600
|
|
Wheels &
Parts
|
Revenue
|
$69.6M
|
$74.8M
|
Down 7.0% primarily
attributable to product mix shifts
|
Gross
margin
|
6.7%
|
7.0%
|
Down 30 bps
reflecting continued challenging operating environment
|
Operating
margin (1)
|
4.2%
|
5.7%
|
|
Leasing &
Services
|
Revenue
|
$28.6M
|
$35.8M
|
Return to more
normalized revenue levels
|
Gross
margin
|
37.1%
|
35.5%
|
Up 160 bps due to
higher margins on externally sourced railcar
syndications
|
Operating
margin (1) (2)
|
25.8%
|
25.3%
|
|
Lease fleet
utilization
|
94.2%
|
91.0%
|
|
|
|
(1)
|
See supplemental
segment information on page 10 for additional
information.
|
(2)
|
Includes Net gain on
disposition of equipment, which is excluded from gross
margin.
|
Conference Call
Greenbrier will host a teleconference to discuss its first
quarter 2017 results. In conjunction with this news release,
Greenbrier has posted a supplemental earnings presentation to our
website.
Teleconference details are as follows:
- January 6, 2017
- 8:00 a.m. Pacific Standard
Time
- Phone: 1-630-395-0143, Password: "Greenbrier"
- Real-time Audio Access: ("Newsroom" at
http://www.gbrx.com)
Please access the site 10 minutes prior to the start
time.
About Greenbrier
Greenbrier (www.gbrx.com), headquartered in Lake Oswego, Oregon, is a leading
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. Through our European manufacturing operations, we
recently 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 8,500 railcars and performs
management services for over 265,000 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; policies and priorities of the federal government
regarding international trade and infrastructure; 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, 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.
THE GREENBRIER
COMPANIES, INC.
|
CONSOLIDATED
BALANCE SHEETS (In thousands, unaudited)
|
|
|
November
30, 2016
|
August 31, 2016
|
May
31, 2016
|
February
29, 2016
|
November
30, 2015
|
Assets
|
|
|
|
|
|
Cash and
cash equivalents
|
$
233,790
|
$
222,679
|
$
214,440
|
$
283,541
|
$
197,633
|
Restricted cash
|
8,642
|
24,279
|
8,669
|
8,877
|
9,818
|
Accounts
receivable, net
|
237,037
|
232,517
|
213,510
|
228,072
|
237,213
|
Inventories
|
402,064
|
365,805
|
458,068
|
421,243
|
444,023
|
Leased
railcars for syndication
|
102,686
|
144,932
|
136,812
|
179,975
|
238,911
|
Equipment on operating leases, net
|
305,586
|
306,266
|
232,791
|
235,171
|
252,641
|
Property, plant and equipment, net
|
327,170
|
329,990
|
318,010
|
310,019
|
307,196
|
Investment in unconsolidated affiliates
|
93,330
|
98,682
|
89,297
|
86,850
|
86,658
|
Intangibles and other assets, net
|
63,780
|
67,359
|
68,648
|
70,709
|
73,333
|
Goodwill
|
43,265
|
43,265
|
43,265
|
43,265
|
43,265
|
|
$
1,817,350
|
$
1,835,774
|
$
1,783,510
|
$
1,867,722
|
$
1,890,691
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Revolving notes
|
$
-
|
$
-
|
$
-
|
$
75,000
|
$
163,888
|
Accounts
payable and accrued liabilities
|
345,776
|
369,754
|
370,652
|
401,010
|
384,670
|
Deferred
income taxes
|
54,123
|
51,619
|
50,390
|
55,204
|
63,483
|
Deferred
revenue
|
85,358
|
95,721
|
68,158
|
84,362
|
42,351
|
Notes
payable, net
|
300,331
|
301,853
|
304,434
|
319,952
|
321,844
|
|
|
|
|
|
|
Total
equity - Greenbrier
|
880,725
|
874,311
|
840,086
|
800,940
|
771,945
|
Noncontrolling interest
|
151,037
|
142,516
|
149,790
|
131,254
|
142,510
|
Total
equity
|
1,031,762
|
1,016,827
|
989,876
|
932,194
|
914,455
|
|
$
1,817,350
|
$
1,835,774
|
$
1,783,510
|
$
1,867,722
|
$
1,890,691
|
THE GREENBRIER
COMPANIES, INC.
|
|
CONSOLIDATED
STATEMENTS OF INCOME (In thousands, except per share
amounts, unaudited)
|
|
|
Three Months
Ended November
30,
|
|
|
|
|
2016
|
|
2015
|
|
Revenue
|
|
|
|
|
|
|
Manufacturing
|
|
$
|
454,033
|
|
$
698,661
|
|
Wheels
& Parts
|
|
|
69,635
|
|
78,729
|
|
Leasing
& Services
|
|
|
28,646
|
|
24,999
|
|
|
|
|
552,314
|
|
802,389
|
|
Cost of
revenue
|
|
|
|
|
|
|
Manufacturing
|
|
|
356,555
|
|
533,033
|
|
Wheels
& Parts
|
|
|
64,978
|
|
73,002
|
|
Leasing
& Services
|
|
|
18,030
|
|
11,589
|
|
|
|
|
439,563
|
|
617,624
|
|
|
|
|
|
|
|
|
Margin
|
|
|
112,751
|
|
184,765
|
|
|
|
|
|
|
|
|
Selling and
administrative
|
|
|
41,213
|
|
36,549
|
|
Net gain on
disposition of equipment
|
|
|
(1,122)
|
|
(269)
|
|
Earnings from
operations
|
|
|
72,660
|
|
148,485
|
|
|
|
|
|
|
|
|
Other
costs
|
|
|
|
|
|
|
Interest and foreign
exchange
|
|
|
1,724
|
|
5,436
|
|
Earnings before
income tax and earnings (loss) from unconsolidated affiliates
|
|
|
70,936
|
|
143,049
|
|
Income tax
expense
|
|
|
(20,386)
|
|
(44,719)
|
|
Earnings before
earnings (loss) from unconsolidated affiliates
|
|
|
50,550
|
|
98,330
|
|
Earnings (loss) from
unconsolidated affiliates
|
|
|
(2,584)
|
|
383
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
47,966
|
|
98,713
|
|
Net earnings
attributable to noncontrolling interest
|
|
|
(23,004)
|
|
(29,280)
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Greenbrier
|
|
$
|
24,962
|
|
$
69,433
|
|
|
|
|
|
|
|
|
Basic earnings per
common share:
|
|
$
|
0.86
|
|
$
2.36
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share:
|
|
$
|
0.79
|
|
$
2.15
|
|
|
|
|
|
|
|
|
Weighted average
common shares:
|
|
|
|
|
|
|
Basic
|
|
|
29,097
|
|
29,391
|
|
Diluted
|
|
|
32,412
|
|
32,578
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
|
0.21
|
|
$
0.20
|
|
THE GREENBRIER
COMPANIES, INC.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (In thousands,
unaudited)
|
|
|
|
|
Three Months
Ended
November
30,
|
|
|
|
2016
|
|
2015
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net earnings
|
|
$
|
47,966
|
|
$
98,713
|
Adjustments to reconcile net earnings to net cash
provided by (used in) operating activities:
|
|
|
|
|
|
Deferred income taxes
|
|
|
2,756
|
|
3,019
|
Depreciation and amortization
|
|
|
15,595
|
|
12,974
|
Net gain on disposition of equipment
|
|
|
(1,122)
|
|
(269)
|
Stock based compensation expense
|
|
|
5,343
|
|
5,301
|
Noncontrolling interest adjustments
|
|
|
(3,781)
|
|
262
|
Other
|
|
|
229
|
|
637
|
Decrease (increase) in assets:
|
|
|
|
|
|
Accounts receivable, net
|
|
|
(5,256)
|
|
(40,889)
|
Inventories
|
|
|
(39,108)
|
|
(274)
|
Leased railcars for syndication
|
|
|
34,295
|
|
(61,059)
|
Other
|
|
|
8,893
|
|
(3,578)
|
Decrease in liabilities:
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
(25,693)
|
|
(77,605)
|
Deferred revenue
|
|
|
(11,111)
|
|
(723)
|
Net cash provided by (used in) operating activities
|
|
|
29,006
|
|
(63,491)
|
Cash flows from
investing activities:
|
|
|
|
|
|
Proceeds from sales of assets
|
|
|
9,189
|
|
41,353
|
Capital expenditures
|
|
|
(12,584)
|
|
(15,595)
|
Decrease (increase) in restricted cash
|
|
|
15,637
|
|
(949)
|
Cash
distribution from unconsolidated affiliates
|
|
|
550
|
|
616
|
Investment in and advances to unconsolidated affiliates
|
|
|
(550)
|
|
(1,866)
|
Net cash provided by investing activities
|
|
|
12,242
|
|
23,559
|
Cash flows from
financing activities:
|
|
|
|
|
|
Net changes in revolving notes with maturities of 90 days or
less
|
|
|
-
|
|
113,000
|
Repayments of notes payable
|
|
|
(1,750)
|
|
(1,761)
|
Debt issuance costs
|
|
|
-
|
|
(4,493)
|
Cash distribution to joint venture partner
|
|
|
(11,185)
|
|
(17,654)
|
Repurchase of stock
|
|
|
-
|
|
(20,203)
|
Dividends
|
|
|
(6,147)
|
|
(105)
|
Excess tax benefit (deficiency) from restricted stock
awards
|
|
|
(2,464)
|
|
2,827
|
Other
|
|
|
-
|
|
(6)
|
Net cash provided by (used in) financing activities
|
|
|
(21,546)
|
|
71,605
|
Effect of exchange rate changes
|
|
|
(8,591)
|
|
(6,970)
|
Increase in cash and cash equivalents
|
|
|
11,111
|
|
24,703
|
Cash and cash
equivalents
|
|
|
|
|
|
Beginning of
period
|
|
|
222,679
|
|
172,930
|
End of
period
|
|
$
|
233,790
|
|
$
197,633
|
|
|
|
|
|
|
|
|
|
|
|
|
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, unaudited)
|
|
Segment
Information
|
|
Three months ended
November 30, 2016:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Earnings (loss) from
operations
|
(In
thousands)
|
External
|
|
Intersegment
|
|
Total
|
|
External
|
|
Intersegment
|
|
Total
|
Manufacturing
|
$
454,033
|
|
$
-
|
|
$
454,033
|
|
$
83,341
|
|
$
-
|
|
$
83,341
|
Wheels &
Parts
|
69,635
|
|
7,201
|
|
76,836
|
|
2,894
|
|
612
|
|
3,506
|
Leasing &
Services
|
28,646
|
|
5,334
|
|
33,980
|
|
7,390
|
|
5,250
|
|
12,640
|
Eliminations
|
-
|
|
(12,535)
|
|
(12,535)
|
|
-
|
|
(5,862)
|
|
(5,862)
|
Corporate
|
-
|
|
-
|
|
-
|
|
(20,965)
|
|
-
|
|
(20,965)
|
|
$
552,314
|
|
$
-
|
|
$
552,314
|
|
$
72,660
|
|
$
-
|
|
$
72,660
|
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
|
|
Total
assets
|
|
November
30,
|
|
August 31,
|
(In
thousands)
|
2016
|
|
2016
|
Manufacturing
|
$
729,361
|
|
$
701,296
|
Wheels &
Parts
|
279,971
|
|
275,599
|
Leasing &
Services
|
471,957
|
|
516,147
|
Unallocated
|
336,061
|
|
342,732
|
|
$
1,817,350
|
|
$
1,835,774
|
The results of operations for GBW, which are shown below, are
not reflected in the above tables as the investment is accounted
for under the equity method of accounting.
|
|
As of and for
the
Three Months
Ended
|
|
|
November
30,
|
|
August
31,
|
|
|
2016
|
|
2016
|
|
Revenue
|
$
70,300
|
|
$
84,100
|
|
Loss from
operations
|
$
(4,600)
|
|
$
(500)
|
|
Total
assets
|
$
238,300
|
|
$
247,600
|
|
|
|
|
|
|
|
|
|
|
THE GREENBRIER
COMPANIES, INC.
|
|
SUPPLEMENTAL
INFORMATION (In thousands, excluding backlog and delivery
units, unaudited)
|
|
Reconciliation of
Net earnings to Adjusted EBITDA
|
|
|
|
|
Three Months
Ended
|
|
|
|
November
30,
2016
|
|
August 31,
2016
|
Net
earnings
|
$
47,966
|
|
$
60,363
|
Interest and foreign
exchange
|
1,724
|
|
2,937
|
Income tax
expense
|
20,386
|
|
19,420
|
Depreciation and
amortization
|
15,595
|
|
21,664
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
85,671
|
|
$
104,384
|
|
|
|
|
|
|
|
|
|
Three
Months Ended November
30, 2016
|
Backlog Activity
(units)
|
|
|
|
Beginning
backlog
|
27,500
|
Orders
received
|
2,400
|
Production held as
Leased railcars for syndication
|
(600)
|
Production sold
directly to third parties
|
(3,500)
|
Ending
backlog
|
25,800
|
|
|
Delivery
Information (units)
|
|
Production sold
directly to third parties
|
3,500
|
Sales of Leased
railcars for syndication
|
500
|
Total
deliveries
|
4,000
|
THE GREENBRIER
COMPANIES, INC.
|
SUPPLEMENTAL
INFORMATION
|
(In thousands,
except per share amounts, unaudited)
|
|
Reconciliation of
common shares outstanding and diluted earnings per
share
|
|
The shares used in
the computation of the Company's basic and diluted earnings per
common share are reconciled as follows:
|
|
|
Three Months
Ended
|
|
November
30, 2016
|
August
31, 2016
|
Weighted average
basic common shares outstanding (1)
|
29,097
|
29,079
|
Dilutive effect of
convertible notes (2)
|
3,258
|
3,250
|
Dilutive effect of
performance awards (3)
|
57
|
118
|
Weighted average
diluted common shares outstanding
|
32,412
|
32,447
|
|
|
|
|
|
(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 was included 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, 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 of using the treasury stock method, associated with
shares underlying the 2026 Convertible notes and performance based
restricted stock units subject to performance criteria, for which
actual levels of performance above target have been achieved. The
second approach supplements the first by including the "if
converted" effect of the 2018 Convertible notes issued in
March 2011. Under the "if converted
method" debt issuance and interest costs, both net of tax,
associated with the convertible notes are added back to net
earnings and the share count is increased by the shares underlying
the convertible notes.
|
Three Months
Ended
|
|
November
30, 2016
|
August
31, 2016
|
Net earnings
attributable to Greenbrier
|
$
24,962
|
$
33,560
|
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
|
$
25,695
|
$
34,293
|
Weighted average
diluted common shares outstanding
|
32,412
|
32,447
|
|
|
|
Diluted earnings per
share
|
$
0.79
|
$
1.06
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/greenbrier-reports-first-quarter-results-300386942.html
SOURCE The Greenbrier Companies, Inc. (GBX)