Press Releases

Greenbrier Reports Profitable Results for Quarter and Year, Maintains Strong Backlog, Grows Management Services Business
PRNewswire-FirstCall
LAKE OSWEGO, Ore.
  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 today reported profitable results for its fourth fiscal quarter and fiscal year ended August 31, 2003. Higher production rates and improved margins and operating efficiencies continue to drive results. Both North American and discontinued European operations reported profits for the fourth quarter. North America was profitable for the year as well, with Europe operating near break-even.

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