LAKE OSWEGO, Ore., Nov. 1, 2012 /PRNewswire/ -- The Greenbrier Companies (NYSE: GBX) today reported results for its fiscal fourth quarter and fiscal year ended August 31, 2012.
Fourth Quarter and Fiscal Year Highlights
- Full year revenue reached $1.81 billion, a 45% increase over last year and a new record for the company.
- Record net earnings attributable to Greenbrier ("net earnings") for the year of $58.7 million was a nine-fold increase over prior year.
- Net earnings for the fourth quarter were $7.4 million, or $.26 per diluted share, on revenue of $443.5 million.
- New railcar deliveries for 2012 were a record 15,000 units, compared to 9,400 units in 2011, and 2,500 units in 2010.
- During the fourth quarter, the Company received orders for 2,900 new railcars.
- New railcar manufacturing backlog as of August 31, 2012 was 10,700 units with an estimated value of $1.20 billion (an average unit sale price of $112,000), compared to 11,500 units with an estimated value of $1.14 billion (an average unit sale price of $99,000) as of May 31, 2012. Based on current production plans, approximately 7,300 units in August 31, 2012 backlog are scheduled for delivery in fiscal 2013. The balance are scheduled for delivery in fiscal 2014.
- Marine backlog totaled $25 million as of August 31, 2012; additionally we were awarded a letter of intent for 15 barges valued at $60 million subject to significant permitting and other conditions.
- Operating cash flow was positive $116.1 million for 2012, compared to negative $34.3 million in 2011.
William A. Furman, president and chief executive officer, said, "In fiscal 2012, our manufacturing operations responded well to strong demand for new railcars and our leasing operation significantly enhanced its syndication and management services model, leading to record revenue and earnings for the full year. While we realized positive momentum during the year in both of these operations, our fourth quarter earnings were well below our expectations. This was principally due to lower than anticipated new railcar deliveries, a high tax rate for the quarter, and certain employee related costs."
Mark Rittenbaum, chief financial officer, noted, "New railcar deliveries to two customers totaling 560 railcars, with an aggregate value of nearly $50 million that we expected to occur by year-end, were postponed due to delays in a lease syndication transaction and one customer's acceptance of certain railcars. All of these deliveries occurred subsequent to quarter end. Additionally, our actual tax rate for the quarter of 51% was significantly higher than our expected tax rate of around 34%. This difference was primarily due to a change in our geographic mix of earnings. Also, we incurred certain severance costs of nearly $1 million after-tax during the quarter. Finally, gain on disposition of equipment was only $.1 million pre-tax for the quarter, whereas the average gain for the prior three quarters was nearly $3 million per quarter."
Furman concluded, "In fiscal 2013, we expect less business visibility than in fiscal 2012, as a result of global economic and geopolitical uncertainty. We will focus on four key areas beyond basic execution of our operating plan. First, we will expand capacity in higher margin railcar types, such as tank cars, to respond to market demand. Second, we will continue to expand our product offerings in the businesses that are related to the oil, gas and chemical industries and in other high-growth areas. Third, we will continue to improve our working capital position, increase free cash flow and pay down debt. Lastly, we will continue to seek diversification and growth opportunities in the rail freight marketplace, especially in leasing."
Financial Summary
|
Q4 FY12 |
Q3 FY12 |
Sequential Comparison – Main Drivers |
|
|
Revenue |
$443.5M |
$507.8M |
Down, due to lower new railcar deliveries with a higher average sales price |
|
Gross margin |
12.3% |
12.2% |
Up 10 bps on operational efficiencies |
|
Selling and administrative |
$27.6M |
$28.8M |
Lower incentive compensation expense associated with lower earnings |
|
Gain on disposition of equipment |
$0.07M |
$2.6M |
Timing of sales fluctuates and is opportunistic |
|
Adjusted EBITDA |
$36.0 M |
$44.6M |
Down 19.3% due to lower revenue |
|
Effective tax rate |
51% |
30% |
Change in geographic mix of earnings |
|
Net earnings |
$7.4M |
$19.1M |
Down 61% on lower revenue and higher tax rate |
|
Diluted EPS – GAAP |
$0.26 |
$0.61 |
"If converted" calculation |
|
Economic EPS |
$0.27 |
$0.69 |
Excludes "if converted" impact of out-of-the-money bonds due 2018 |
Segment Summary
|
Q4 FY12 |
Q3 FY12 |
Sequential Comparison – Main Drivers |
|
|
Manufacturing: Revenue
Gross margin Deliveries
|
$306.2M
11.8% 3,500 |
$364.9M
10.8% 4,500 |
Down 16.1% due to lower deliveries with higher average sales price Up 100 bps due to operational efficiencies Down due to timing of lease syndications and customer acceptance (560 cars) and change in mix |
|
Wheel Services, Refurbishment & Parts Revenue Gross margin |
$119.1M 8.1% |
$125.1M 10.8% |
Down 4.8% due to lower wheel volumes Down 270 bps due to lower wheel volumes, sales mix and repair labor inefficiencies |
|
Leasing & Services: Revenue Gross margin Lease Fleet Utilization |
$18.3M 47.6% 93.5% |
$17.7M 50.2% 95.5% |
Up 3.4% due to increased volume of leased cars Down 260 bps due to fewer railcars held for syndication resulting in less interim rent Timing of lease commencement on certain fleet additions |
Business Outlook
Given global economic and geopolitical uncertainty, Greenbrier currently has less business visibility and more variability now than it had in fiscal 2012. Based on current business trends and industry forecasts, management currently anticipates the Company's new railcar deliveries in 2013 to be between 11,500 – 13,000 units. Approximately 7,300 of these units are in firm backlog as of August 31, 2012, with the balance of deliveries expected to come from additional orders received during the year. While the range of deliveries is below the 15,000 deliveries for fiscal 2012, the Company anticipates the product mix will include railcars with higher average selling prices. Currently, management anticipates that at the upper end of the delivery guidance range, fiscal 2013 revenue, adjusted EBITDA and earnings per share will be similar to fiscal 2012, with the second half of the year being stronger than the first half of the year.
Conference Call
Greenbrier will host a teleconference to discuss fourth quarter results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. Teleconference details are as follows:
- November 1, 2012
- 8:00 a.m. Pacific Daylight Time
- Phone: 1-630-395-0143, Password: "Greenbrier"
- 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 webcast replay will be available for 30 days. Telephone replay will be available through December 2, 2012 at 1-402-280-9982.
About Greenbrier Companies
Greenbrier, (www.gbrx.com), headquartered in Lake Oswego, Oregon, is a leading supplier of transportation equipment and services to the railroad industry. Greenbrier builds new railroad freight cars in its three manufacturing facilities in the U.S. and Mexico and marine barges at its U.S. facility. It also repairs and refurbishes freight cars and provides wheels and railcar parts at 39 locations across North America. Greenbrier builds new railroad freight cars and refurbishes freight cars for the European market through both its operations in Poland and various subcontractor facilities throughout Europe. Greenbrier owns approximately 11,000 railcars, and performs management services for approximately 219,000 railcars.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This release may contain forward-looking statements, including statements regarding expected new railcar production volumes and schedules, expected customer demand for the Company's products and services, plans to increase manufacturing capacity, new railcar delivery volumes and schedules, growth in demand for the Company's railcar services and parts business, and the Company's future financial performance. Greenbrier uses words such as "anticipates," "believes," "forecast," "potential," "contemplates," "expects," "intends," "plans," "seeks," "estimates," "could," "would," "will," "may," "can," and similar expressions to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to certain risks and uncertainties that could cause actual results to differ materially from in the results contemplated by the forward-looking statements. Factors that might cause such a difference include, but are not limited to, reported backlog is not indicative of our financial results; turmoil in the credit markets and financial services industry; high levels of indebtedness and compliance with the terms of our indebtedness; write-downs of goodwill, intangibles and other assets in future periods; sufficient availability of borrowing capacity; fluctuations in demand for newly manufactured railcars or failure to obtain orders as anticipated in developing forecasts; loss of one or more significant customers; customer payment defaults or related issues; actual future costs and the availability of materials and a trained workforce; failure to design or manufacture new products or technologies or to achieve certification or market acceptance of new products or technologies; steel or specialty component price fluctuations and availability and scrap surcharges; changes in product mix and the mix between segments; labor disputes, energy shortages or operating difficulties that might disrupt manufacturing operations or the flow of cargo; production difficulties and product delivery delays as a result of, among other matters, changing technologies, production of new railcar types, or non-performance of subcontractors or suppliers; ability to obtain suitable contracts for the sale of leased equipment and risks related to car hire and residual values; difficulties associated with governmental regulation, including environmental liabilities; integration of current or future acquisitions; succession planning; all as may be discussed in more detail under the headings "Risk Factors" and "Forward Looking Statements" in our Annual Report on Form 10-K for the fiscal year ended August 31, 2011, and our other reports on file with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date hereof. Except as otherwise required by law, we do not assume any obligation to update any forward-looking statements.
Adjusted EBITDA is not a financial measure under generally accepted accounting principles (GAAP). We define Adjusted EBITDA as earnings attributable to Greenbrier before loss on extinguishment of debt, interest and foreign exchange, income tax expense, depreciation and amortization. Adjusted EBITDA is a performance measurement tool commonly used by rail supply companies and Greenbrier. You should not consider Adjusted EBITDA in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because Adjusted EBITDA is not a measure of financial performance under GAAP and is susceptible to varying calculations, the Adjusted EBITDA measure presented may differ from and may not be comparable to similarly titled measures used by other companies.
Economic EPS is not a financial measure under GAAP. Economic EPS is used to measure the current economic impact of our Convertible Bonds due in 2018 that have a conversion strike price of $38.05/share, which exceeds our current stock price. We define Economic EPS as net earnings attributable to Greenbrier divided by the sum of weighted average basic common shares outstanding, plus the dilutive effect of warrants. This calculation excludes the dilutive effect of the shares underlying the 2018 bonds under the "if converted" method, which is included in the calculation of Diluted EPS. You should not consider Economic EPS in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because Economic EPS is not a measure of financial performance under GAAP and is susceptible to varying calculations, the Economic EPS measure presented may differ from and may not be comparable to similarly titled measures used by other companies.
|
THE GREENBRIER COMPANIES, INC. |
|||||
|
CONSOLIDATED BALANCE SHEETS |
|||||
|
(In thousands, unaudited) |
|||||
|
August 31, |
May 31, |
February 29, |
November 30, |
August 31, |
|
|
2012 |
2012 |
2012 |
2011 |
2011 |
|
|
Assets |
|||||
|
Cash and cash equivalents |
$ 53,571 |
$ 44,915 |
$ 40,666 |
$ 20,855 |
$ 50,222 |
|
Restricted cash |
6,277 |
6,089 |
2,249 |
2,151 |
2,113 |
|
Accounts receivable, net |
146,326 |
172,086 |
177,544 |
149,559 |
188,443 |
|
Inventories |
316,741 |
346,122 |
365,811 |
354,045 |
323,512 |
|
Leased railcars for syndication |
97,798 |
66,776 |
79,681 |
68,029 |
30,690 |
|
Equipment on operating leases, net |
362,968 |
334,872 |
322,811 |
323,878 |
321,141 |
|
Property, plant and equipment, net |
182,429 |
172,729 |
165,700 |
159,671 |
161,200 |
|
Goodwill |
137,066 |
137,066 |
137,066 |
137,066 |
137,066 |
|
Intangibles and other assets, net |
81,368 |
84,693 |
85,155 |
84,187 |
87,268 |
|
$ 1,384,544 |
$ 1,365,348 |
$ 1,376,683 |
$ 1,299,441 |
$ 1,301,655 |
|
|
Liabilities and Equity |
|||||
|
Revolving notes |
$ 60,755 |
$ 71,430 |
$ 101,446 |
$ 80,679 |
$ 90,339 |
|
Accounts payable and accrued liabilities |
329,508 |
323,977 |
340,328 |
311,519 |
316,536 |
|
Deferred income taxes |
95,363 |
88,514 |
89,623 |
87,395 |
83,839 |
|
Deferred revenue |
17,194 |
17,872 |
1,230 |
5,724 |
5,900 |
|
Notes payable |
428,079 |
428,028 |
428,454 |
431,184 |
429,140 |
|
Total equity Greenbrier |
431,777 |
418,161 |
399,788 |
368,528 |
361,573 |
|
Noncontrolling interest |
21,868 |
17,366 |
15,814 |
14,412 |
14,328 |
|
Total equity |
453,645 |
435,527 |
415,602 |
382,940 |
375,901 |
|
$ 1,384,544 |
$ 1,365,348 |
$ 1,376,683 |
$ 1,299,441 |
$ 1,301,655 |
|
|
THE GREENBRIER COMPANIES, INC. |
|||||||
|
CONSOLIDATED STATEMENTS OF INCOME |
|||||||
|
(In thousands, except per share amounts) |
|||||||
|
Years Ended August 31, |
|||||||
|
2012 |
2011 |
2010 |
|||||
|
Revenue |
|||||||
|
Manufacturing |
$ 1,253,964 |
$ 721,102 |
$ 295,566 |
||||
|
Wheel Services, Refurbishment & Parts |
481,865 |
452,865 |
388,434 |
||||
|
Leasing & Services |
71,887 |
69,323 |
72,280 |
||||
|
1,807,716 |
1,243,290 |
756,280 |
|||||
|
Cost of revenue |
|||||||
|
Manufacturing |
1,122,384 |
661,127 |
268,395 |
||||
|
Wheel Services, Refurbishment & Parts |
433,541 |
405,449 |
344,522 |
||||
|
Leasing & Services |
37,371 |
37,183 |
41,365 |
||||
|
1,593,296 |
1,103,759 |
654,282 |
|||||
|
Margin |
214,420 |
139,531 |
101,998 |
||||
|
Selling and administrative |
104,596 |
80,326 |
69,931 |
||||
|
Gain on disposition of equipment |
(8,964) |
(8,369) |
(8,170) |
||||
|
Special items |
- |
- |
(11,870) |
||||
|
Earnings from operations |
118,788 |
67,574 |
52,107 |
||||
|
Other costs |
|||||||
|
Interest and foreign exchange |
24,809 |
36,992 |
45,204 |
||||
|
Loss (gain) on extinguishment of debt |
- |
15,657 |
(2,070) |
||||
|
Earnings before income tax and loss from unconsolidated affiliates |
93,979 |
14,925 |
8,973 |
||||
|
Income tax benefit (expense) |
(32,393) |
(3,564) |
959 |
||||
|
Earnings before loss from unconsolidated affiliates |
61,586 |
11,361 |
9,932 |
||||
|
Loss from unconsolidated affiliates |
(416) |
(2,974) |
(1,601) |
||||
|
Net earnings |
61,170 |
8,387 |
8,331 |
||||
|
Net earnings attributable to noncontrolling interest |
(2,462) |
(1,921) |
(4,054) |
||||
|
Net earnings attributable to Greenbrier |
$ 58,708 |
$ 6,466 |
$ 4,277 |
||||
|
Basic earnings per common share: |
$ 2.21 |
$ 0.27 |
$ 0.23 |
||||
|
Diluted earnings per common share: |
$ 1.91 |
$ 0.24 |
$ 0.21 |
||||
|
Weighted average common shares: |
|||||||
|
Basic |
26,572 |
24,100 |
18,585 |
||||
|
Diluted |
33,718 |
26,501 |
20,213 |
||||
|
THE GREENBRIER COMPANIES, INC. |
||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||
|
(In thousands) |
||||||
|
Years Ended August 31, |
||||||
|
2012 |
2011 |
2010 |
||||
|
Cash flows from operating activities: |
||||||
|
Net earnings |
$ 61,170 |
$ 8,387 |
$ 8,331 |
|||
|
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: |
||||||
|
Deferred income taxes |
11,617 |
2,399 |
15,052 |
|||
|
Depreciation and amortization |
42,371 |
38,293 |
37,511 |
|||
|
Gain on sales of leased equipment |
(8,964) |
(5,121) |
(6,543) |
|||
|
Accretion of debt discount |
3,259 |
6,583 |
8,149 |
|||
|
Special items |
- |
- |
(11,870) |
|||
|
Loss (gain) on extinguishment of debt (non-cash portion) |
- |
8,453 |
(2,070) |
|||
|
Other |
13,662 |
6,762 |
4,237 |
|||
|
Decrease (increase) in assets: |
||||||
|
Accounts receivable |
37,763 |
(96,552) |
22,430 |
|||
|
Inventories |
3,709 |
(116,866) |
(45,212) |
|||
|
Leased railcars for syndication |
(76,071) |
(20,839) |
759 |
|||
|
Other |
- |
8,863 |
6,455 |
|||
|
Increase (decrease) in liabilities: |
||||||
|
Accounts payable and accrued liabilities |
16,236 |
130,673 |
12,777 |
|||
|
Deferred revenue |
11,304 |
(5,287) |
(7,445) |
|||
|
Net cash (used in) provided by operating activities |
116,056 |
(34,252) |
42,561 |
|||
|
Cash flows from investing activities: |
||||||
|
Proceeds from sales of equipment |
33,560 |
18,730 |
22,978 |
|||
|
Investment in and advances to unconsolidated affiliates |
(506) |
(2,330) |
(927) |
|||
|
Contract placement fee |
- |
- |
(6,050) |
|||
|
Decrease (increase) in restricted cash |
(4,164 |
412 |
(1,442 |
|||
|
Capital expenditures |
(117,885) |
(84,302) |
(38,989) |
|||
|
Other |
48 |
(1,774 |
260 |
|||
|
Net cash used in investing activities |
(88,947) |
(69,264) |
(24,170) |
|||
|
Cash flows from financing activities: |
||||||
|
Net changes in revolving notes with maturities of 90 days or less |
(57,302) |
71,625 |
(11,934) |
|||
|
Proceeds from revolving notes with maturities longer than 90 days |
63,773 |
25,159 |
5,698 |
|||
|
Repayments of revolving notes with maturities longer than 90 days |
(33,934) |
(10,000) |
(5,698) |
|||
|
Proceeds from issuance of notes payable |
2,750 |
231,250 |
2,149 |
|||
|
Debt issuance costs |
- |
(11,469) |
(109) |
|||
|
Repayments of notes payable |
(7,070) |
(311,360) |
(38,267) |
|||
|
Proceeds from equity offering |
- |
63,180 |
56,250 |
|||
|
Expenses from equity offering |
- |
(420) |
(3,542) |
|||
|
Excess tax benefit from restricted stock awards |
1,627 |
- |
- |
|||
|
Investment by joint venture partner |
1,362 |
- |
- |
|||
|
Other |
- |
26 |
29 |
|||
|
Net cash provided by (used in) financing activities |
(28,794) |
57,991 |
4,576 |
|||
|
Effect of exchange rate changes |
5,034 |
(3,117) |
(290) |
|||
|
Increase (decrease) in cash and cash equivalents |
3,349 |
(48,642) |
22,677 |
|||
|
Cash and cash equivalents |
||||||
|
Beginning of period |
50,222 |
98,864 |
76,187 |
|||
|
End of period |
$ 53,571 |
$ 50,222 |
$ 98,864 |
|||
|
THE GREENBRIER COMPANIES, INC. |
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|
SUPPLEMENTAL INFORMATION |
||||||||||
|
Quarterly Results of Operations (Unaudited) |
||||||||||
|
(In thousands, except per share amounts) |
||||||||||
|
Operating results by quarter for 2012 and 2011 are as follows: |
||||||||||
|
First |
Second |
Third |
Fourth |
Total |
||||||
|
2012 |
||||||||||
|
Revenue |
||||||||||
|
Manufacturing |
$ 262,656 |
$ 320,206 |
$ 364,930 |
$ 306,172 |
$ 1,253,964 |
|||||
|
Wheel Services, Refurbishment & Parts |
117,749 |
119,894 |
125,145 |
119,077 |
481,865 |
|||||
|
Leasing & Services |
17,794 |
18,086 |
17,722 |
18,285 |
71,887 |
|||||
|
398,199 |
458,186 |
507,797 |
443,534 |
1,807,716 |
||||||
|
Cost of revenue |
||||||||||
|
Manufacturing |
236,188 |
290,851 |
325,424 |
269,921 |
1,122,384 |
|||||
|
Wheel Services, Refurbishment & Parts |
105,891 |
106,554 |
111,610 |
109,486 |
433,541 |
|||||
|
Leasing & Services |
9,663 |
9,295 |
8,825 |
9,588 |
37,371 |
|||||
|
351,742 |
406,700 |
445,859 |
388,995 |
1,593,296 |
||||||
|
Margin |
46,457 |
51,486 |
61,938 |
54,539 |
214,420 |
|||||
|
Selling and administrative |
23,235 |
24,979 |
28,784 |
27,598 |
104,596 |
|||||
|
Gain on disposition of equipment |
(3,658) |
(2,654) |
(2,585) |
(67) |
(8,964) |
|||||
|
Earnings from operations |
26,880 |
29,161 |
35,739 |
27,008 |
118,788 |
|||||
|
Other costs |
||||||||||
|
Interest and foreign exchange |
5,383 |
6,630 |
6,560 |
6,236 |
24,809 |
|||||
|
Earnings before income tax and earnings (loss) from unconsolidated affiliates |
21,497 |
22,531 |
29,179 |
20,772 |
93,979 |
|||||
|
Income tax expense |
(7,797) |
(5,348) |
(8,655) |
(10,593) |
(32,393) |
|||||
|
Earnings (loss) from unconsolidated affiliates |
(372) |
72 |
201 |
(317) |
(416) |
|||||
|
Net earnings |
13,328 |
17,255 |
20,725 |
9,862 |
61,170 |
|||||
|
Net (earnings) loss attributable to Noncontrolling interest |
1,189 |
415 |
(1,608) |
(2,458) |
(2,462) |
|||||
|
Net earnings attributable to Greenbrier |
$ 14,517 |
$ 17,670 |
$ 19,117 |
$ 7,404 |
$ 58,708 |
|||||
|
Basic earnings per common share: (1) |
$ 0.57 |
$ 0.66 |
$ 0.71 |
$ 0.27 |
$ 2.21 |
|||||
|
Diluted earnings per common share: (2) |
$ 0.48 |
$ 0.57 |
$ 0.61 |
$ 0.26 |
$ 1.91 |
|||||
|
(1) |
Quarterly amounts do not total to the year to date amount as each period is calculated discretely. |
|
(2) |
Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the outstanding warrants using the treasury stock method and the dilutive effect of shares underlying the 2018 Convertible Notes using the "if converted" method in which debt issuance and interest costs, net of tax, were added back to net earnings. |
|
THE GREENBRIER COMPANIES, INC. |
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|
SUPPLEMENTAL INFORMATION |
||||||||||
|
Quarterly Results of Operations (Unaudited) |
||||||||||
|
(In thousands, except per share amounts) |
||||||||||
|
First |
Second |
Third |
Fourth |
Total |
||||||
|
2011 |
||||||||||
|
Revenue |
||||||||||
|
Manufacturing |
$ 85,440 |
$ 156,621 |
$ 173,487 |
$ 305,554 |
$ 721,102 |
|||||
|
Wheel Services, Refurbishment & Parts |
95,268 |
112,015 |
126,317 |
119,265 |
452,865 |
|||||
|
Leasing & Services |
18,226 |
15,704 |
17,476 |
17,917 |
69,323 |
|||||
|
198,934 |
284,340 |
317,280 |
442,736 |
1,243,290 |
||||||
|
Cost of revenue |
||||||||||
|
Manufacturing |
79,747 |
147,552 |
158,674 |
275,154 |
661,127 |
|||||
|
Wheel Services, Refurbishment & Parts |
86,411 |
101,413 |
111,202 |
106,423 |
405,449 |
|||||
|
Leasing & Services |
9,120 |
8,725 |
9,254 |
10,084 |
37,183 |
|||||
|
175,278 |
257,690 |
279,130 |
391,661 |
1,103,759 |
||||||
|
Margin |
23,656 |
26,650 |
38,150 |
51,075 |
139,531 |
|||||
|
Selling and administrative |
17,938 |
17,693 |
22,580 |
22,115 |
80,326 |
|||||
|
Gain on disposition of equipment |
(2,510) |
(1,961) |
(1,678) |
(2,220) |
(8,369) |
|||||
|
Earnings from operations |
8,228 |
10,918 |
17,248 |
31,180 |
67,574 |
|||||
|
Other costs |
||||||||||
|
Interest and foreign exchange |
10,304 |
10,536 |
9,807 |
6,345 |
36,992 |
|||||
|
Loss on extinguishment of debt |
- |
- |
10,007 |
5,650 |
15,657 |
|||||
|
Earnings (loss) before income tax and loss from unconsolidated affiliates |
(2,076) |
382 |
(2,566) |
19,185 |
14,925 |
|||||
|
Income tax benefit (expense) |
611 |
(100) |
301 |
(4,376) |
(3,564) |
|||||
|
Loss from unconsolidated affiliates |
(587) |
(575) |
(539) |
(1,273) |
(2,974) |
|||||
|
Net earnings (loss) |
(2,052) |
(293) |
(2,804) |
13,536 |
8,387 |
|||||
|
Net earnings attributable to Noncontrolling interest |
(252) |
(257) |
(510) |
(902) |
(1,921) |
|||||
|
Net earnings (loss) attributable to Greenbrier |
$ (2,304) |
$ (550) |
$ (3,314) |
$ 12,634 |
$ 6,466 |
|||||
|
Basic earnings (loss) per common share: (1) |
$ (0.11) |
$ (0.02) |
$ (0.14) |
$ 0.50 |
$ 0.27 |
|||||
|
Diluted earnings (loss) per common share: (2) |
$ (0.11) |
$ (0.02) |
$ (0.14) |
$ 0.42 |
$ 0.24 |
|||||
|
(1) |
Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Unvested restricted stock awards are excluded from the per share calculation for the first, second and third quarters due to a net loss in each of those periods.2010 includes income of $11. |
|
(2) |
Quarterly amounts do not total to the year to date amount as each period is calculated discretely. The dilutive effect of warrants is excluded from per share calculations for the first, second and third quarters due to net losses for those periods. The fourth quarter diluted earnings per common share includes the outstanding warrants using the treasury stock method and the dilutive effect of shares underlying the 2018 Convertible Notes using the "if converted" method in which debt issuance and interest costs, net of tax, were added back to net earnings. |
|
THE GREENBRIER COMPANIES, INC. |
||||||||||
|
SUPPLEMENTAL INFORMATION |
||||||||||
|
Reconciliation of Net Earnings attributable to Greenbrier to Adjusted EBITDA (1) |
||||||||||
|
(In thousands, unaudited) |
||||||||||
|
Three Months Ended August 31, |
Year Ended August 31, |
|||||||||
|
2012 |
2011 |
2012 |
2011 |
|||||||
|
Net earnings attributable to Greenbrier |
$ 7,404 |
$ 12,634 |
$ 58,708 |
$ 6,466 |
||||||
|
Loss on extinguishment of debt |
- |
5,650 |
- |
15,657 |
||||||
|
Interest and foreign exchange |
6,236 |
6,345 |
24,809 |
36,992 |
||||||
|
Income tax expense |
10,593 |
4,376 |
32,393 |
3,564 |
||||||
|
Depreciation and amortization |
11,768 |
10,119 |
42,371 |
38,293 |
||||||
|
Adjusted EBITDA |
$ 36,001 |
$ 39,124 |
$ 158,281 |
$ 100,972 |
||||||
|
(1) |
Adjusted EBITDA is not a financial measure under generally accepted accounting principles (GAAP). We define Adjusted EBITDA as earnings attributable to Greenbrier before loss on extinguishment of debt, interest and foreign exchange, income tax expense, depreciation and amortization. Adjusted EBITDA is a performance measurement tool commonly used by rail supply companies and Greenbrier. You should not consider Adjusted EBITDA in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because Adjusted EBITDA is not a measure of financial performance under GAAP and is susceptible to varying calculations, the Adjusted EBITDA measure presented may differ from and may not be comparable to similarly titled measures used by other companies. |
|
Three Months Ended August 31, 2012 |
Year Ended August 31, 2012 |
||||
|
Backlog Activity (units) |
|||||
|
Beginning backlog |
11,500 |
15,400 |
|||
|
Orders received |
2,900 |
11,200 |
|||
|
Production held as Leased railcars for syndication |
(300) |
(2,700) |
|||
|
Production sold directly to third parties |
(3,400) |
(13,200) |
|||
|
Ending backlog |
10,700 |
10,700 |
|||
|
Delivery Information (units) |
|||||
|
Production sold directly to third parties |
3,400 |
13,200 |
|||
|
Sales of Leased railcars for syndication |
100 |
1,800 |
|||
|
Total deliveries |
3,500 |
15,000 |
|||
|
THE GREENBRIER COMPANIES, INC. |
||||||||
|
SUPPLEMENTAL INFORMATION |
||||||||
|
Calculation of Diluted Earnings Per Share |
||||||||
|
(In thousands, except per share amounts, unaudited) |
||||||||
|
The shares used in the computation of the Company's basic and diluted earnings per common share are reconciled as follows: |
||||||||
|
Three Months Ended August 31, |
Year Ended August 31, |
|||||||
|
2012 |
2011 |
2012 |
2011 |
|||||
|
Weighted average basic common shares outstanding (1) |
27,148 |
25,177 |
26,572 |
24,100 |
||||
|
Dilutive effect of warrants |
756 |
2,340 |
1,101 |
2,401 |
||||
|
Dilutive effect of convertible notes (2) |
6,045 |
6,045 |
6,045 |
- |
||||
|
Weighted average diluted common shares outstanding |
33,949 |
33,562 |
33,718 |
26,501 |
||||
|
(1) |
Restricted stock grants are treated as outstanding when issued and are included in weighted average basic common shares outstanding when the Company is in a net earnings position. |
|
(2) |
In 2012 and for the three months ended August 31, 2011, the shares underlying the dilutive effect of the 2018 Convertible notes are included as they were considered dilutive under the "if converted" method. For the year ended August 31, 2011, the dilutive effect of the shares underlying the 2018 Convertible Notes was excluded from the share calculation as it was the less dilutive of two approaches described below. The dilutive effect of the 2026 Convertible notes was excluded from the share calculations as the stock price for each year presented was less than the initial conversion price of $48.05 and is therefore considered anti-dilutive. |
Diluted EPS was calculated using the more dilutive of two approaches. The first approach includes the dilutive effect of outstanding warrants and shares underlying the 2026 Convertible notes in the share count using the treasury stock method. The second approach supplements the first by including the "if converted" effect of the 2018 Convertible notes issued in March 2011. Under the "if converted method" debt issuance and interest costs, both net of tax, associated with the convertible notes are added back to net earnings and the share count is increased by shares underlying the convertible notes. The 2026 Convertible notes would only be included in the calculation of both approaches if the current stock price is greater than the initial conversion price of $48.05 using the treasury stock method.
|
Three Months Ended August 31, |
Year Ended August 31, |
|||||||
|
2012 |
2011 |
2012 |
2011 |
|||||
|
Net earnings attributable to Greenbrier |
$ 7,404 |
$ 12,634 |
$ 58,708 |
$ 6,466 |
||||
|
Add back: |
||||||||
|
Interest and debt issuance costs on the 2018 Convertible notes, net of tax |
1,416 |
1,376 |
5,677 |
n/a |
||||
|
Earnings before interest and debt issuance costs on convertible notes |
$ 8,820 |
$ 14,010 |
$ 64,385 |
n/a |
||||
|
Weighted average diluted common shares outstanding |
33,949 |
33,562 |
33,718 |
26,501 |
||||
|
Diluted earnings per share(1) |
$ 0.26 |
$ 0.42 |
$ 1.91 |
$ 0.24 |
||||
|
(1) |
Diluted earnings per share was calculated as follows: |
|
Earnings before interest and debt issuance costs on convertible notes or Net earnings attributable to Greenbrier |
|
|
Weighted average diluted common shares outstanding |
|
THE GREENBRIER COMPANIES, INC. |
||||||
|
SUPPLEMENTAL INFORMATION |
||||||
|
Reconciliation of Basic Earnings Per Share to Economic Earnings Per Share (1) |
||||||
|
(In thousands, except per share amounts, unaudited) |
||||||
|
The shares used in the computation of the Company's basic and economic earnings per common share are reconciled as follows: |
||||||
|
Three Months Ended |
Year Ended |
|||||
|
August 31, 2012 |
May 31, 2012 |
August 31, 2012 |
||||
|
Weighted average basic common shares outstanding |
27,148 |
26,981 |
26,572 |
|||
|
Dilutive effect of warrants |
756 |
836 |
1,101 |
|||
|
Weighted average economic diluted common shares outstanding |
27,904 |
27,817 |
27,673 |
|||
|
Net earnings attributable to Greenbrier |
$ 7,404 |
$ 19,117 |
$ 58,708 |
|||
|
Economic earnings per share |
$ 0.27 |
$ 0.69 |
$ 2.12 |
|||
|
(1) |
Economic EPS is not a financial measure under GAAP. Economic EPS is used to measure the current economic impact of our Convertible Bonds due in 2018 that have a conversion strike price of $38.05/share, which exceeds our current stock price. We define Economic EPS as net earnings attributable to Greenbrier divided by the sum of weighted average basic common shares outstanding, plus the dilutive effect of warrants. This calculation excludes the dilutive effect of the shares underlying the 2018 bonds under the "if converted" method, which is included in the calculation of Diluted EPS. You should not consider Economic EPS in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because Economic EPS is not a measure of financial performance under GAAP and is susceptible to varying calculations, the Economic EPS measure presented may differ from and may not be comparable to similarly titled measures used by other companies. |
SOURCE The Greenbrier Companies, Inc. (GBX)
