The Greenbrier Companies, Inc.
Revenues for the first quarter of fiscal 2002 were $80 million, down from $154 million in the first quarter of fiscal 2001. The Company's new railcar deliveries for the quarter of 1,100 units were half that in the prior year's first quarter and backlogs continue to decline. Net loss for the quarter ended November 30, 2001 was $5.0 million, or $.36 per diluted share, compared to net earnings of $3.0 million, or $.21 per diluted share, in the comparable quarter of the prior fiscal year.
The Company's new railcar manufacturing backlog as of November 30, 2001 was 2,400 units valued at $130 million, compared to 3,700 units valued at $200 million at August 31, 2001.
William A. Furman, president and chief executive officer, noted, "Market conditions in the North American rail supply industry remain depressed and this condition has also spread to Europe. This has hit our railcar manufacturing segment very hard. While Greenbrier has been able to grow its new railcar market share to over 20% in North America, industry order rates are down more than 75% from three years ago and price competition is fierce. On the other hand, our leasing, railcar repair, marine and industrial forge businesses continue to do reasonably well. These segments account for about $160 million in annual revenue. Greenbrier has consolidated its North American new railcar production at its Gunderson facility in Portland, Oregon. Commencing in January, its other two new railcar facilities, Gunderson-Concarril and TrentonWorks, will be temporarily shut down. The Company's European operations were a major factor in first quarter losses for the entire company. We are reducing our scale of operation in Europe to match present market circumstances. Management is aggressively pursuing means to improve the financial performance in Europe."
Mark Rittenbaum, senior vice president and treasurer, said: "Greenbrier continues to maintain a strong liquidity position with cash balances of $69 million and unused bank lines of almost $110 million at the end of the quarter. Paydowns of indebtedness aggregating $18 million were also made during the quarter. European operations accounted for over $4 million of the reported $5 million first quarter loss. Nearly 30% of the losses in Europe were due to amortization and depreciation expense, both non-cash items. Because this unit has not been profitable historically, pre-tax losses drop to the bottom line without a tax benefit and generate net operating loss carryforwards."
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 50,000 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 first quarter results. Teleconference details are as follows:
Wednesday, January 9, 2002
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, except per share amounts, unaudited)
November 30, August 31,
2001 2001
Assets
Cash and cash equivalents $68,518 $77,299
Accounts and notes receivable 37,114 50,555
Inventories 109,226 94,581
Investment in direct finance leases 91,813 103,576
Equipment on operating leases 151,361 150,126
Property, plant and equipment 75,388 76,898
Intangible assets 25,081 26,450
Other 26,401 26,695
$584,902 $606,180
Liabilities and Stockholders' Equity
Revolving notes $28,289 $32,986
Accounts payable and accrued liabilities 141,829 135,898
Deferred participation 55,188 56,176
Deferred income taxes 24,356 26,920
Notes payable 168,019 177,575
Subordinated debt 33,818 37,491
Minority interest 4,982 5,025
Stockholders' equity 128,421 134,109
$584,902 $606,180
THE GREENBRIER COMPANIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts, unaudited)
Three Months Ended
November 30,
2001 2000
Revenue
Manufacturing $61,643 $134,779
Leasing & services 18,239 19,205
79,882 153,984
Cost of revenue
Manufacturing 58,284 120,364
Leasing & services 10,231 10,195
68,515 130,559
Margin 11,367 23,425
Other costs
Selling and administrative expense 10,372 13,930
Interest expense 5,487 4,994
15,859 18,924
Earnings (loss) before income tax, minority
interest, equity in loss of unconsolidated
subsidiary (4,492) 4,501
Income tax benefit (expense) 85 (1,371)
Earnings (loss) before minority interest and
equity in loss of unconsolidated subsidiary (4,407) 3,130
Minority interest (128) (123)
Equity in loss of unconsolidated Subsidiary (508) (8)
Net earnings (loss) $(5,043) $2,999
Basic earnings (loss) per common share $(0.36) $0.21
Diluted earnings (loss) per common share $(0.36) $0.21
Weighted average common shares outstanding:
Basic 14,121 14,179
Diluted 14,121 14,194
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, except per share amounts, unaudited)
Three Months Ended
November 30,
2001 2000
Cash flows from operating activities:
Net earnings (loss) $(5,043) $2,999
Adjustments to reconcile net earnings (loss)
to net cash used in operating activities:
Deferred income taxes (957) (2,424)
Deferred participation (988) 745
Depreciation and amortization 5,819 5,243
Gain on sales of equipment (182) (460)
Other 729 (20)
Decrease (increase) in assets:
Accounts and notes receivable 13,441 5,308
Inventories (18,010) (18,849)
Other 345 (2,077)
Increase (decrease) in liabilities:
Accounts payable and accrued liabilities 4,565 (13,499)
Net cash used in operating activities (281) (23,034)
Cash flows from investing activities:
Principal payments received under direct
finance leases 5,208 4,893
Proceeds from sales of equipment 3,241 2,160
Purchase of property and equipment (2,012) (31,172)
Net cash provided by (used in) investing
activities 6,437 (24,119)
Cash flows from financing activities:
Change in revolving notes (4,697) 48,332
Proceeds from notes payable -- 1,447
Repayments of notes payable (9,393) (7,816)
Dividends (847) (1,274)
Purchase of treasury stock -- (834)
Net cash provided by (used in) financing
activities (14,937) 39,855
Decrease in cash and cash equivalents (8,781) (7,298)
Cash and cash equivalents
Beginning of period 77,299 12,908
End of period $68,518 $5,610
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SOURCE: The Greenbrier Companies, Inc.
Contact: Mark Rittenbaum of The Greenbrier Companies, Inc.,
+1-503-684-7000
Website: http://www.gbrx.com/
Company News On-Call: http://www.prnewswire.com/comp/327175.html