The Greenbrier Companies, Inc.
Revenues for the second quarter of fiscal 2001 were $157 million, down from the $173 million in the second quarter of fiscal 2000. Net earnings for the second quarter were $70 thousand, or $.00 per diluted share, down from $4.3 million, or $.30 per diluted share, in the comparable quarter of the prior fiscal year.
For the six months ended February 28, 2001, revenues were $311 million, up from $286 million in the same six-month period of fiscal 2000. Net earnings for the fiscal 2001 six month period were $3.1 million, or $.22 per diluted share, compared to $4.7 million, or $.33 per diluted share in the comparable 2000 period.
The current year's second quarter results were impacted by a reduction in North American new railcar production, timing differences between the actual production and delivery of new railcars, and lower than anticipated new railcar margins on the production of certain car types. Greenbrier currently anticipates that earnings for the fiscal year 2001 as a whole will range from $.40 - $.60 per share.
The company's new railcar manufacturing backlog, as of February 28, 2001, was 4,300 units valued at $260 million, compared to 6,200 units valued at $360 million at November 30, 2000. Subsequent to quarter end, the company announced new orders for 2,700 railcars valued at $110 million and, as a result, the company anticipates that its backlog as of May 31, 2001 will be stable or improve slightly compared to the February 28, 2001 backlog.
Bill Furman, president and chief executive officer, noted, "Overall, new railcar demand in North America remains soft. Greenbrier has performed relatively well in this environment, doubling its marketshare over the last year to over 20% of the total market. However, we are not immune to this downturn and, as a result, have significantly reduced production, laid-off personnel, and instituted cost containment measures. We believe we remain well-positioned to compete in the current intensely competitive marketplace."
The Greenbrier Companies, headquartered in Lake Oswego, Oregon, is a leading supplier of transportation equipment and services to the railroad industry in North America. Greenbrier builds new railroad freight cars in the U.S., Canada and Mexico, and repairs and refurbishes freight cars and wheels at eleven locations across North America. The company also builds new railroad freight cars and refurbishes freight cars for the European market through its manufacturing operations in Poland and various sub-contractor facilities throughout Europe. At Greenbrier's Portland, Oregon manufacturing facility, it builds ocean-going barges for the maritime industry. Greenbrier owns or manages a fleet of approximately 44,000 railcars.
Except for historical information contained herein, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, statements as to expectations, beliefs, and future financial performance. These forward-looking statements are dependent on a number of factors, business risks and issues, a change in which could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Such factors, risks and issues are set forth from time to time under "Forward-Looking Statements," in Management's Discussion and Analysis of Financial Condition and Results of Operations in Greenbrier's SEC filings and reports. Any forward-looking statement speaks only as of the date on which such statement is made. Greenbrier undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.
The Greenbrier Companies will host a teleconference to discuss second quarter results. Teleconference details are as follows:
Tuesday, April 3, 2001 7:30 a.m. Pacific Daylight Time Real-time Audio Access: ("Newsroom" at www.gbrx.com)
Please access the site 10 minutes prior to the start time. Following the call, a replay will be available on the same site.
THE GREENBRIER COMPANIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts, unaudited) February 28, August 31, 2001 2000 Assets Cash and cash equivalents $11,283 $12,908 Accounts and notes receivable 62,368 66,150 Inventories 133,979 127,484 Investment in direct finance leases 115,171 124,780 Equipment on operating leases 120,770 122,074 Property, plant and equipment 79,720 77,628 Intangible assets 22,743 23,001 Other 31,348 30,084 $577,382 $584,109 Liabilities and Stockholders' Equity Revolving notes $37,004 $13,019 Accounts payable and accrued liabilities 131,138 147,792 Deferred participation 55,591 54,266 Deferred income taxes 23,136 25,238 Notes payable 145,877 159,363 Subordinated debt 37,748 37,748 Minority interest 5,087 5,068 Stockholders' equity 141,801 141,615 $577,382 $584,109 THE GREENBRIER COMPANIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts, unaudited) Three Months Ended Six Months Ended Feb. 28, Feb. 29, Feb. 28, Feb. 29, 2001 2000 2001 2000 Revenue Manufacturing $135,175 $149,387 $269,954 $241,182 Leasing and services 21,743 23,436 40,948 44,643 156,918 172,823 310,902 285,825 Cost of revenue Manufacturing 129,490 132,070 249,854 212,083 Leasing and services 10,983 12,332 21,178 24,546 140,473 144,402 271,032 236,629 Margin 16,445 28,421 39,870 49,196 Other costs Selling and administrative expense 10,454 16,184 24,384 28,589 Interest expense 5,448 5,061 10,442 10,039 15,902 21,245 34,826 38,628 Earnings before income tax expense, minority interest, equity in unconsolidated subsidiary 543 7,176 5,044 10,568 Income tax expense (1,402) (3,726) (2,773) (5,963) Earnings before minority interest, equity in unconsolidated subsidiary (859) 3,450 2,271 4,605 Minority interest 104 (397) (19) (1,144) Equity in unconsolidated subsidiary 825 1,250 817 1,266 Net earnings $70 $4,303 $3,069 $4,727 Basic earnings per common share $0.00 $0.30 $0.22 $0.33 Diluted earnings per common share $0.00 $0.30 $0.22 $0.33 Weighted average common shares outstanding: Basic 14,121 14,255 14,151 14,255 Diluted 14,146 14,267 14,170 14,295
SOURCE: Greenbrier Companies, Inc.
Contact: Mark Rittenbaum or Bruce Harmon, both of The Greenbrier
Companies, Inc., 503-684-7000
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