Press Releases

Greenbrier Reports Fiscal Year 2001 Results Higher Than Previously Disclosed Expectations; Reduces Dividends in Light of Market Conditions
PRNewswire
LAKE OSWEGO, Ore.

The Greenbrier Companies today announced earnings of $.08 per share for the fiscal year ended August 31, 2001, higher than previously disclosed revised expectations of near breakeven. The company also announced a quarterly cash dividend of $.06 per share, payable on December 12, 2001 to stockholders of records as of November 21, 2001.

Revenues for the fourth quarter of fiscal 2001 were $135 million, down from $162 million in the fourth quarter of fiscal 2000. Net loss for the fourth quarter of fiscal 2001 was $623 thousand, or $.04 per share, as compared to net earnings of $5.4 million, or $.38 per share in the fourth quarter of fiscal 2000.

For the year ended August 31, 2001, revenues were $594 million, as compared to $619 million for fiscal year 2000. Net earnings for fiscal year 2001 were $1.1 million, or $.08 per share, compared to fiscal 2000 net earnings of $14.4 million, or $1.01 per share.

The company's new railcar manufacturing backlog as of August 31, 2001 was 3,700 units valued at $200 million, compared to 4,600 units valued at $230 million at May 31, 2001.

William A. Furman, president and chief executive officer, noted "Market conditions in the North American rail supply industry remain depressed and we have, as of yet, not seen signs of recovery. Industrywide, new orders are at levels of less than half of a year ago and are at a third of industry deliveries in 1999. Greenbrier continues to perform relatively well in this difficult market environment, with a current market share of nearly 25%. The company continues to focus on cash flow, liquidity and maintaining a strong balance sheet in this environment. In this regard, the company's Board of Directors has deemed it prudent to reduce the quarterly dividend to $.06 per share, the level in existence up until July 1999. Since July 1999, regular quarterly dividends were $.09 per share. The company also continues to focus on managing and reducing costs and capital expenditures to reflect lower revenue and earnings expectations and in order to maintain its competitive position."

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 42,000 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 third quarter results. Teleconference details are as follows:

        Wednesday, November 7, 2001
        7:30 a.m. Pacific Standard Time
        Real-time Audio Access:  ("Newsroom" at http://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, unaudited)
                                                 August 31,     August 31,
                                                    2001           2000
  ASSETS
   Cash and cash equivalents                       $77,299        $12,908
   Accounts and notes receivable                    50,555         66,150
   Inventories                                      94,581        127,484
   Investment in direct finance leases             103,576        124,780
   Equipment on operating leases                   150,126        122,074
   Property, plant and equipment                    76,898         77,628
   Intangible assets                                26,450         23,001
   Other                                            26,695         30,084
                                                  $606,180       $584,109

  LIABILITIES AND STOCKHOLDERS' EQUITY
   Revolving notes                                 $32,986        $13,019
   Accounts payable and accrued liabilities        135,898        147,792
   Deferred participation                           56,176         54,266
   Deferred income taxes                            26,920         25,238
   Notes payable                                   177,575        159,363

   Subordinated debt                                37,491         37,748

   Minority interest                                 5,025          5,068

   Stockholders' equity                            134,109        141,615
                                                  $606,180       $584,109

                      THE GREENBRIER COMPANIES, INC.
                   CONSOLIDATED STATEMENTS OF EARNINGS
           (In thousands, except per share amounts, unaudited)

                              Three Months Ended           Year Ended
                                  August 31,               August 31,
                               2001        2000        2001        2000
  Revenue
   Manufacturing            $114,026     $140,050    $513,012    $528,240
   Leasing and services       20,721       21,639      80,986      91,189
                             134,747      161,689     593,998     619,429

  Cost of revenue
   Manufacturing             103,682      123,224     470,376     466,348
   Leasing and services       11,266       10,348      43,295      46,711
                             114,948      133,572     513,671     513,059

  Margin                      19,799       28,117      80,327     106,370

  Other costs
   Selling and administrative
    expense                   11,193       12,013      49,547      54,202
   Interest expense            5,518        5,147      22,257      21,165
                              16,711       17,160      71,804      75,367

  Earnings before income
   tax expense, minority
   interest and equity in
   unconsolidated subsidiary   3,088       10,957       8,523      31,003

  Income tax expense         (2,638)      (5,162)     (6,806)    (16,053)
  Earnings before minority
   interest and equity in
   unconsolidated subsidiary     450        5,795       1,717      14,950

  Minority interest               46        (139)          43     (1,650)

  Equity in unconsolidated
   subsidiary                (1,119)        (270)       (641)       1,054

  Net earnings                $(623)       $5,386      $1,119     $14,354

  Basic earnings
   per share:                $(0.04)        $0.38       $0.08       $1.01
  Diluted earnings
   per share:                $(0.04)        $0.38       $0.08       $1.01

  Weighted average shares
   outstanding:
    Basic                     14,121       14,227      14,151      14,227
    Diluted                   14,128       14,227      14,170      14,241


                      THE GREENBRIER COMPANIES, INC
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
            (In thousands, except per share amounts, unaudited


                                                    Years ended August 31,
                                                     2001           2000
  Cash flows from operating activities:
  Net earnings                                      $1,119        $14,354

  Adjustments to reconcile net earnings
   to net cash provided by
   (used in) operating activities:
   Deferred income taxes                             1,682          7,604

   Deferred participation                            1,910          3,827

   Depreciation and amortization                    22,396         20,356

   Gain on sales of equipment                      (1,390)        (4,527)
   Other                                           (1,891)          2,627

  Decrease (increase) in assets:
   Accounts and notes receivable                    15,595       (18,610)
   Inventories                                      13,137       (39,249)
   Prepaid expenses and other                        6,976        (1,376)
  Decrease in liabilities:
   Accounts payable and accrued liabilities       (18,118)       (13,295)
  Net cash provided by (used in) operating
   activities                                       41,416       (28,289)
  Cash flows from investing activities:
   Acquisitions, net of cash acquired                (282)        (4,787)
   Principal payments received under direct
    finance leases                                  20,761         18,313

   Investment in direct finance leases                  --          (170)
   Proceeds from sales of equipment                 47,515         49,789

   Investment in Joint Venture                     (4,000)             --

   Purchase of property and equipment             (73,336)       (93,821)
  Net cash used in investing activities            (9,342)       (30,676)
   Cash flows from financing activities:
   Proceeds from borrowings                         70,725         34,052

   Repayments of borrowings                       (32,363)       (26,987)
   Dividends                                       (5,086)        (5,132)
   Purchase of minority interest                        --        (7,610)
   Purchase of treasury stock                        (959)          (246)
  Net cash provided by (used in) financing
   activities                                       32,317        (5,923)

  Increase (decrease) in cash and cash equivalents  64,391       (64,888)
  Cash and cash equivalents
   Beginning of period                              12,908         77,796

   End of period                                   $77,299        $12,908

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SOURCE: The Greenbrier Companies

Contact: Mark Rittenbaum of The Greenbrier Companies, +1-503-684-7000

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