Highlights
-- Strong performance in both North America and Europe drove profitability
for the fourth quarter and year.
-- Net earnings for the fourth quarter ended August 31, 2003 were
$3.3 million, or $.23 per diluted share. This compares to a net loss
of $2.3 million, or $.16 per diluted share, in the fourth quarter of
fiscal 2002, and to net income of $3.0 million, or $.21 per diluted
share, for the third quarter ended May 31, 2003.
-- Revenues for the fourth quarter of fiscal 2003 grew by 20% to
$108 million, on a 50% increase in new railcar deliveries in North
America of 1,800 units, compared to 1,200 units in the prior fourth
quarter.
-- Net earnings for the second half of fiscal 2003 were $6.3 million, or
$.44 per diluted share, compared to a net loss of $4.2 million, or
$.30 per diluted share, for the second half of fiscal 2002.
-- Net earnings for the full fiscal year 2003 were $4.3 million, or
$.30 per diluted share.
-- Revenues for fiscal 2003 grew by 42% to $435 million, on a 70% increase
in new railcar deliveries in North America to 5,600 units, compared to
3,300 units in the prior year.
-- New railcar manufacturing backlog in North America and Europe was
10,700 units valued at $580 million at August 31, 2003, compared to
5,200 units valued at $280 million at August 31, 2002.
-- Maintenance management services continues to grow. An agreement was
entered into with Burlington Northern and Santa Fe Railway (BNSF),
under which Greenbrier is managing freight car repair billing for BNSF.
Greenbrier now owns 12,000 railcars and provides maintenance and other
asset management services for 115,000 railcars.
-- Industry supply issues continue to be addressed through acquisition of
a second railcar truck castings foundry in Alliance, Ohio, via a joint
venture with ACF Industries and ASF - Keystone.
-- The Company continues to maintain strong liquidity. After debt
reductions of $33 million during the year, August 31, 2003 cash
balances grew to $76 million; unused lines of credit remained at
$110 million in North America. EBITDA from continuing operations for
fiscal 2003 was $39 million.
The Greenbrier Companies
Backlog remains strong in both North America and Europe, stretching into fiscal 2005. The August 31, 2003 backlog includes 9,000 units valued at $440 million from North American operations and 1,700 units valued at $140 million from European operations. The May 31, 2003 backlog included 10,500 units valued at $500 million in North America and 1,500 units valued at $130 million in Europe.
William A. Furman, president and chief executive officer, said, "The new railcar market in North America is clearly in the midst of a recovery. Industry orders of 35,186 for the first three quarters of 2003 exceed orders of 28,457 for all of 2002. Greenbrier's new railcar marketshare in North America continues to exceed 30%, more than double our share of industry capacity. Our strong backlog provides good financial visibility. As we enter 2004 with a strong balance sheet and liquidity position, we intend to more aggressively pursue strategic initiatives and deploy capital in accretive investments in the North American railroad supply industry."
Furman added, "Progress continues to be made on the recapitalization of the European operations. The Company has entered into a non-exclusive letter of intent with private investors, subject to financing, documentation, and final approval by Greenbrier's Board of Directors. The Company remains committed to completing the recapitalization during its second fiscal quarter of 2004. In the meantime, Greenbrier Europe has returned to profitability and has produced substantially improved financial results."
Mark Rittenbaum, senior vice president and treasurer, noted, "During the fourth fiscal quarter of 2003, the Company delivered 1,800 new railcars in North America. This compares to only 1,500 railcars in the third quarter of 2003 and 1,200 railcars in the fourth quarter of 2002. For the year as a whole, deliveries were 5,600 units, compared to 3,300 units in fiscal 2002. In 2004, the Company anticipates deliveries will approach 8,000 railcars."
Rittenbaum added, "Greenbrier continues to maintain strong liquidity. Cash balances have grown by $17 million in 2003 to $76 million. Unused lines of credit are nearly $110 million. Over the past two years, the Company paid down over $90 million of debt and participation, of which $40 million was paid in fiscal 2003. EBITDA from continuing operations was $39 million for fiscal 2003, compared to $28 million for fiscal 2002."
The Greenbrier Companies (www.gbrx.com), 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 thirteen 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 approximately 12,000 railcars and performs management services for approximately 115,000 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 fourth quarter and fiscal year end results. Teleconference details are as follows:
Wednesday, November 12, 2003 8:00 am 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
August 31,
(In thousands, except per share
amounts, unaudited)
Assets 2003 2002
Cash and cash equivalents $75,700 $58,777
Accounts and notes receivable 59,669 45,135
Inventories 91,310 56,868
Investment in direct finance leases 41,821 69,536
Equipment on operating leases 139,047 151,580
Property, plant and equipment 56,684 58,292
Other 23,483 21,507
Discontinued operations 51,234 65,751
$538,948 $527,446
Liabilities and Stockholders' Equity
Revolving notes $5,267 $3,571
Accounts payable and accrued liabilities 114,459 96,237
Participation 55,901 60,995
Deferred revenue 39,776 3,949
Deferred income taxes 16,127 13,823
Notes payable 110,715 136,577
Discontinued operations 59,742 77,188
Subordinated debt 20,921 27,069
Minority interest 4,898 4,898
Stockholders' equity 111,142 103,139
$538,948 $527,446
THE GREENBRIER COMPANIES, INC.
Consolidated Statements of Operations
Years ended August 31,
(In thousands, except per share
amounts, unaudited) 2003 2002 2001
Revenue
Manufacturing $364,548 $233,379 $427,841
Leasing & services 70,443 72,250 80,986
434,991 305,629 508,827
Cost of revenue
Manufacturing 337,205 217,238 393,422
Leasing & services 43,609 44,694 43,295
380,814 261,932 436,717
Margin 54,177 43,697 72,110
Other costs
Selling and administrative
expense 31,354 29,221 37,692
Interest expense 11,859 15,456 18,478
Special charges -- 1,896 --
43,213 46,573 56,170
Earnings (loss) before income
tax and equity in unconsolidated
subsidiaries 10,964 (2,876) 15,940
Income tax benefit (expense) (4,700 1,743 (7,167)
Earnings (loss) before equity in
unconsolidated subsidiaries 6,264 (1,133) 8,773
Equity in loss of unconsolidated
subsidiaries (1,898) (2,578) (641)
Earnings (loss) from continuing
operations 4,366 (3,711) 8,132
Loss from discontinued operations
(net of tax) (49) (22,383) (7,013)
Net earnings (loss) $4,317 $(26,094) $1,119
Basic earnings (loss) per
common share:
Continuing operations $0.31 $(0.26) $0.57
Discontinued operations 0.00 (1.59) (0.49)
Net earnings (loss) $0.31 $(1.85) $0.08
Diluted earnings (loss)
per common share:
Continuing operations $0.30 $(0.26) $0.57
Discontinued operations 0.00 (1.59) (0.49)
Net earnings (loss) $0.30 $(1.85) $0.08
Weighted average common shares:
Basic 14,138 14,121 14,151
Diluted 14,325 14,121 14,170
THE GREENBRIER COMPANIES, INC.
Condensed Consolidated Statements of Cash Flows
Years ended August 31,
(In thousands, unaudited) 2003 2002 2001
Cash flows from operating
activities:
Net earnings (loss) $4,317 $(26,094) $1,119
Adjustments to reconcile net
earnings (loss) to net cash
provided by operating activities:
Loss from discontinued operations 49 22,383 7,013
Other changes in discontinued
operations (2,978) 22,061 1,236
Deferred income taxes 2,304 (13,097) 1,682
Depreciation and amortization 18,066 17,960 17,796
Gain on sales of equipment (454) (910) (1,390)
Other 1,429 (3,419) (1,177)
Decrease (increase) in assets:
Accounts and notes
receivable (14,534) (9,186) 20,300
Inventories (37,554) (3,600) 42,141
Other 863 3,843 2,716
Increase (decrease) in
liabilities:
Accounts payable and
accrued liabilities 18,119 17,974 (31,119)
Participation (5,094) 22 3,763
Deferred revenue 36,583 (664) 1,939
Net cash provided by operating
activities 21,116 27,273 66,019
Cash flows from investing
activities:
Acquisitions, net of cash
acquired (3,126) -- (282)
Principal payments received
under direct finance leases 14,294 18,828 20,761
Proceeds from sales of
equipment 23,954 24,042 47,772
Investment in joint venture -- -- (4,000)
Investment in discontinued
operations -- (16,843) (4,660)
Capital expenditures (10,094) (21,402) (70,136)
Net cash provided by
(used in) investing
activities 25,028 4,625 (10,545)
Cash flows from financing
activities:
Changes in revolving notes 1,696 (4,285) (227)
Proceeds from notes payable 6,348 4,285 50,000
Repayments of notes payable (32,914) (36,399) (31,604)
Repayment of subordinated
debt (6,148) (10,422) (257)
Dividends -- (847) (5,086)
Exercise of stock options 1,797 -- --
Purchase of common stock -- -- (959)
Net cash provided by (used in)
financing activities (29,221) (47,668) 11,867
Increase (decrease) in cash
and cash equivalents 16,923 (15,770) 67,341
Cash and cash equivalents
Beginning of period 58,777 74,547 7,206
End of period $75,700 $58,777 $74,547
THE GREENBRIER COMPANIES, INC.
Supplemental Disclosure
Reconciliation of Net Cash Provided by Operating Activities to EBITDA
(In thousands, unaudited)
August 31,
2003 2002 2001
Net cash provided by operating
activities $21,116 $27,273 $66,019
Changes in working capital 1,617 (8,389) (39,740)
Changes in discontinued
operations 2,978 (22,061) (1,236)
Deferred income taxes (2,304) 13,097 (1,682)
Gain on sales of equipment 454 910 1,390
Other (1,429) 3,419 1,177
Income tax expense (benefit) 4,700 (1,743) 7,167
Interest expense 11,859 15,456 18,478
EBITDA from continuing
operations $38,991 $27,962 $51,573
(1) "EBITDA" (earnings from continuing operations before interest, taxes,
depreciation and amortization) is a useful liquidity measurement tool
commonly used by rail supply companies and Greenbrier. It should not
be considered in isolation or as a substitute for cash flows from
operating activities or cash flow statement data prepared in
accordance with generally accepted accounting principles.
Quarterly Results of Operations
Unaudited operating results by quarter for 2003 and 2002 are as follows:
(In thousands, except per share amounts)
First Second Third Fourth Total
2003
Revenue
Manufacturing $79,211 $86,539 $108,099 $90,699 $364,548
Leasing &
services 17,678 18,190 16,853 17,722 70,443
96,889 104,729 124,952 108,421 434,991
Cost of revenue
Manufacturing 74,335 83,173 98,494 81,203 337,205
Leasing &
services 11,566 10,961 10,265 10,817 43,609
85,901 94,134 108,759 92,020 380,814
Margin 10,988 10,595 16,193 16,401 54,177
Other costs
Selling and
administrative
expense 6,670 7,534 8,040 9,110 31,354
Interest
expense 3,282 2,992 2,340 3,245 11,859
Earnings before
income tax,
minority
interest, and
equity in
unconsolidated
subsidiaries 1,036 69 5,813 4,046 10,964
Income tax
expense (396) (51) (2,539) (1,714) (4,700)
Minority
interest (18) 18 -- -- --
Equity in loss
of unconsolidated
subsidiaries (517) (437) (461) (483) (1,898)
Earnings (loss)
from continuing
operations 105 (401) 2,813 1,849 4,366
Earnings (loss)
from discontinued
operations (848) (836) 193 1,442 (49)
Net earnings
(loss) $(743) $(1,237) $3,006 $3,291 $4,317
Basic earnings
(loss) per
common share:
Continuing
operations $.01 $(.03) $.20 $.13 $.31
Net earnings
(loss) $(.05) $(.09) $.21 $.23 $.31
Diluted earnings
(loss) per
common share:
Continuing
operations $.01 $(.03) $.20 $.13 $.30
Net earnings
(loss) $(.05) $(.09) $.21 $.23 $.30
Certain reclasses have been made to conform to 2003 presentation.
First Second Third Fourth Total
2002
Revenue
Manufacturing $53,217 $53,552 $54,175 $72,435 $233,379
Leasing &
services 18,239 18,270 18,048 17,693 72,250
71,456 71,822 72,223 90,128 305,629
Cost of revenue
Manufacturing 49,692 52,899 51,619 63,028 217,238
Leasing &
services 10,231 10,632 12,142 11,689 44,694
59,923 63,531 63,761 74,717 261,932
Margin 11,533 8,291 8,462 15,411 43,697
Other costs
Selling and
administrative
expense 7,364 6,940 7,025 7,892 29,221
Interest
expense 4,249 3,915 3,667 3,626 15,456
Special charges -- 2,083 -- (187) 1,896
Earnings (loss)
before income
tax, minority
interest, and
equity in
unconsolidated
subsidiary (80) (4,647) (2,230) 4,081 (2,876)
Income tax benefit
(expense) 32 1,830 576 (695) 1,743
Minority interest(171) 171 -- -- --
Equity in loss of
unconsolidated
subsidiary (508) (416) (327) (1,327) (2,578)
Earning (loss)
from continuing
operations (727) (3,062) (1,981) 2,059 (3,711)
Earnings (loss)
from
discontinued
operations (4,316) (13,764) 10 (4,313) (22,383)
Net loss $(5,043) $(16,826) $(1,971) $(2,254) $(26,094)
Basic earnings
(loss) per
common share:
Continuing
operations $(.05) $(.22) $(.14) $.15 $(.26)
Net earnings
(loss) $(.36) $(1.19) $(.14) $(.16) $(1.85)
Diluted earnings
(loss) per
common share:
Continuing
operations $(.05) $(.22) $(.14) $.15 $(.26)
Net earnings
(loss) $(.36) $(1.19) $(.14) $(.16) $(1.85)
Certain reclasses have been made to conform to 2003 presentation.
SOURCE: The Greenbrier Companies
CONTACT: Mark Rittenbaum of Greenbrier, +1-503-684-7000
Web site: http://www.gbrx.com/