LAKE OSWEGO, Ore., Jan. 9, 2013 /PRNewswire/ -- The Greenbrier Companies (NYSE: GBX) today reported results for its first fiscal quarter ended November 30, 2012.
First Quarter Highlights
- Net earnings for the first quarter were $10.4 million, or $.35 per diluted share, on revenue of $415.4 million.
- Adjusted EBITDA for the quarter was $31.8 million, or 7.6% of revenue.
- New railcar deliveries were 2,900 units in the first quarter, a strong start to the year.
- Since September 1, 2012, the beginning of the Company's fiscal year, Greenbrier has received orders for 4,200 new railcar units valued at over $430 million, of which 1,400 units were received during the quarter, and 2,800 units subsequent to quarter end.
- Subsequent to quarter end, the Company received a multi-year award to perform repair and refurbishment work, with anticipated annual revenue of about $12 million.
- Subsequent to quarter end, the Company received awards for two multi-year management services contracts, with anticipated annual revenue of $3.5 million when fully implemented in fiscal 2014.
- New railcar manufacturing backlog as of November 30, 2012 was 9,700 units with an estimated value of $1.11 billion (average unit sale price of $114,000), compared to 10,700 units with an estimated value of $1.20 billion (average unit sale price of $112,000) as of August 31, 2012.
- Marine backlog totaled 2 units valued at $20 million as of November 30, 2012; subsequent to quarter end, Greenbrier received awards for 2 additional units valued at less than $10 million. Additionally we are party to a letter of intent for 15 barges valued at $60 million, subject to permitting and other conditions.
William A. Furman, president and chief executive officer, said, "We are pleased with our solid quarterly results. Our visibility is growing as the result of major new orders. We expect financial momentum will continue to build sequentially throughout the year, in line with earlier guidance. In North America, we continue to ramp up our higher margin tank car production to capitalize on demand from the strong energy market and are sold out of tank car capacity through calendar 2014. We expect to be at an annual run rate of about 3,800 tank cars in North America by December 2013. At the same time, we are seeing more diversified demand for our products and services in each of the business segments, as well as among railcar types, including automotive, forest products and intermodal."
Furman continued, "Since September 1, 2012, the beginning of our fiscal year, we have received orders for 4,200 new railcar units in North America and Europe, of which 1,400 were automotive related, 1,250 were tank cars, with the balance including covered hopper cars, gondolas for scrap steel and other car types. With our flexible manufacturing footprint we can readily shift our capacity to railcar types in demand. Additionally, we have recently been awarded a major multi-year maintenance contract and two multi-year management services contracts."
Furman added, "Our four key focus areas for 2013 are: enhancing operating margins, expanding product and service offerings, increasing free cash flow, and business diversification and growth. We are confident that this focus coupled with our diverse product offerings, integrated business model, and flexible manufacturing footprint position us to continue to gain share, enhance margins, and to grow through the cycle. We believe we have a long runway ahead, in each of our business segments, to drive shareholder value."
Financial Summary
|
Q1 FY13 |
Q4 FY12 |
Sequential Comparison – Main Drivers |
|
|
Revenue |
$415.4M |
$443.5M |
Down 6.3% principally due to lower new railcar deliveries with a higher average sales price |
|
Gross margin |
11.5% |
12.3% |
Down 80 bps due to lower manufacturing margin, partially offset by higher margins in both other segments |
|
Selling and administrative |
$26.1M |
$27.6M |
Down due to lower incentive compensation in Q1 and certain severance costs in Q4 |
|
Gain on disposition of equipment |
$1.4M |
$0.07M |
Timing of sales fluctuates and is opportunistic |
|
Adjusted EBITDA |
$31.8M |
$36.0 M |
Down principally due to lower deliveries and margin |
|
Effective tax rate |
26.7% |
51.0% |
Normalized rate in both periods is about 34%; difference from normalized rate is due to certain discrete tax items |
|
Net earnings |
$10.4M |
$7.4M |
Up due to lower tax rate in Q1 |
|
Diluted EPS – GAAP |
$0.35 |
$0.26 |
"If converted" calculation |
|
Economic EPS |
$0.37 |
$0.27 |
Excludes "if converted" impact of out-of-the-money bonds due 2018 |
Segment Summary
|
Q1 FY13 |
Q4 FY12 |
Sequential Comparison – Main Drivers |
|
|
Manufacturing |
|||
|
Revenue |
$285.4M |
$306.2M |
Down 6.8% due to lower deliveries with a higher average sales price |
|
Gross margin |
9.4% |
11.8% |
Down 240 bps due to changes in certain production rates and product mix |
|
Deliveries |
2,900 |
3,500 |
Down due change in product mix to higher labor content units |
|
Wheel Services, Refurbishment & Parts |
|||
|
Revenue |
$112.1M |
$119.1M |
Down 5.9% due to lower wheel and part volumes |
|
Gross margin |
9.5% |
8.1% |
Up 140 bps due to better mix and improved efficiencies |
|
Leasing & Services |
|||
|
Revenue |
$17.9M |
$18.3M |
Down 2.2% due to lower interim rents |
|
Gross margin |
57.4% |
47.6% |
Up 980 bps due to reduction in certain maintenance accruals |
|
Lease fleet utilization |
95.2% |
93.5% |
Up due to Q4 fleet additions placed in service in Q1 |
Business Outlook
Based on current business trends and industry forecasts, management currently anticipates the Company's new railcar deliveries in 2013 to be about 13,000 units. While deliveries are expected to be below the 15,000 deliveries for fiscal 2012, the Company anticipates the product mix will be more favorable and include railcars with higher average selling prices. Management anticipates that 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.
Certain orders and awards referenced in this release are subject to customary documentation and completion of terms.
Conference Call
Greenbrier will host a teleconference to discuss first quarter results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. Teleconference details are as follows:
- January 9, 2013
- 8:00 a.m. Pacific Standard 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 January 26, 2013, at 203-369-0948.
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 four 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 10,000 railcars, and performs management services for approximately 221,000 railcars.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This presentation 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," "goal," "contemplates," "expects," "intends," "plans," "projects," "hopes," "seeks," "estimates," "could," "would," "will," "may," "can," "designed to," "foreseeable future" 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, 2012, 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 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) |
|||||
|
November 30, 2012 |
August 31, 2012 |
May 31, 2012 |
February 29, 2012 |
November 30, 2011 |
|
|
Assets |
|||||
|
Cash and cash equivalents |
$ 41,284 |
$ 53,571 |
$ 44,915 |
$ 40,666 |
$ 20,855 |
|
Restricted cash |
7,322 |
6,277 |
6,089 |
2,249 |
2,151 |
|
Accounts receivable, net |
163,385 |
146,326 |
172,086 |
177,544 |
149,559 |
|
Inventories |
363,642 |
316,741 |
346,122 |
365,811 |
354,045 |
|
Leased railcars for syndication |
54,297 |
97,798 |
66,776 |
79,681 |
68,029 |
|
Equipment on operating leases, net |
362,522 |
362,968 |
334,872 |
322,811 |
323,878 |
|
Property, plant and equipment, net |
186,715 |
182,429 |
172,729 |
165,700 |
159,671 |
|
Goodwill |
137,066 |
137,066 |
137,066 |
137,066 |
137,066 |
|
Intangibles and other assets, net |
79,500 |
81,368 |
84,693 |
85,155 |
84,187 |
|
$ 1,395,733 |
$ 1,384,544 |
$ 1,365,348 |
$ 1,376,683 |
$ 1,299,441 |
|
|
Liabilities and Equity |
|||||
|
Revolving notes |
$ 89,826 |
$ 60,755 |
$ 71,430 |
$ 101,446 |
$ 80,679 |
|
Accounts payable and accrued liabilities |
282,925 |
329,508 |
323,977 |
340,328 |
311,519 |
|
Deferred income taxes |
96,498 |
95,363 |
88,514 |
89,623 |
87,395 |
|
Deferred revenue |
28,283 |
17,194 |
17,872 |
1,230 |
5,724 |
|
Notes payable |
427,697 |
428,079 |
428,028 |
428,454 |
431,184 |
|
Total equity Greenbrier |
447,080 |
431,777 |
418,161 |
399,788 |
368,528 |
|
Noncontrolling interest |
23,424 |
21,868 |
17,366 |
15,814 |
14,412 |
|
Total equity |
470,504 |
453,645 |
435,527 |
415,602 |
382,940 |
|
$ 1,395,733 |
$ 1,384,544 |
$ 1,365,348 |
$ 1,376,683 |
$ 1,299,441 |
|
|
THE GREENBRIER COMPANIES, INC. |
|||||
|
Consolidated Statements of Income |
|||||
|
(In thousands, except per share amounts, unaudited) |
|||||
|
Three Months Ended November 30, |
|||||
|
2012 |
2011 |
||||
|
Revenue |
|||||
|
Manufacturing |
$ 285,368 |
$ 262,656 |
|||
|
Wheel Services, Refurbishment & Parts |
112,100 |
117,749 |
|||
|
Leasing & Services |
17,906 |
17,794 |
|||
|
415,374 |
398,199 |
||||
|
Cost of revenue |
|||||
|
Manufacturing |
258,492 |
236,188 |
|||
|
Wheel Services, Refurbishment & Parts |
101,476 |
105,891 |
|||
|
Leasing & Services |
7,627 |
9,663 |
|||
|
367,595 |
351,742 |
||||
|
Margin |
47,779 |
46,457 |
|||
|
Selling and administrative |
26,100 |
23,235 |
|||
|
Gain on disposition of equipment |
(1,408) |
(3,658) |
|||
|
Earnings from operations |
23,087 |
26,880 |
|||
|
Other costs |
|||||
|
Interest and foreign exchange |
5,900 |
5,383 |
|||
|
Earnings before income taxes and loss from unconsolidated affiliates |
17,187 |
21,497 |
|||
|
Income tax expense |
(4,586) |
(7,797) |
|||
|
Earnings before loss from unconsolidated affiliates |
12,601 |
13,700 |
|||
|
Loss from unconsolidated affiliates |
(40) |
(372) |
|||
|
Net earnings |
12,561 |
13,328 |
|||
|
Net (earnings) loss attributable to noncontrolling interest |
(2,134) |
1,189 |
|||
|
Net earnings attributable to Greenbrier |
$ 10,427 |
$ 14,517 |
|||
|
Basic earnings per common share: |
$ 0.38 |
$ 0.57 |
|||
|
Diluted earnings per common share: |
$ 0.35 |
$ 0.48 |
|||
|
Weighted average common shares: |
|||||
|
Basic |
27,144 |
25,463 |
|||
|
Diluted |
33,991 |
33,389 |
|||
|
THE GREENBRIER COMPANIES, INC. |
|||||
|
Consolidated Statements of Cash Flows |
|||||
|
(In thousands, unaudited) |
|||||
|
Three Months Ended November 30, |
|||||
|
2012 |
2011 |
||||
|
Cash flows from operating activities: |
|||||
|
Net earnings |
$ 12,561 |
$ 13,328 |
|||
|
Adjustments to reconcile net earnings to net cash used in operating activities: |
|||||
|
Deferred income taxes |
940 |
3,665 |
|||
|
Depreciation and amortization |
10,923 |
9,889 |
|||
|
Gain on sales of leased equipment |
(1,408) |
(3,658) |
|||
|
Accretion of debt discount |
849 |
787 |
|||
|
Stock based compensation expense |
1,886 |
1,742 |
|||
|
Other |
(1,705) |
2,024 |
|||
|
Decrease (increase) in assets: |
|||||
|
Accounts receivable |
(15,515) |
33,687 |
|||
|
Inventories |
(41,465) |
(34,088) |
|||
|
Leased railcars for syndication |
43,501 |
(37,339) |
|||
|
Other |
945 |
856 |
|||
|
Increase (decrease) in liabilities: |
|||||
|
Accounts payable and accrued liabilities |
(48,036) |
260 |
|||
|
Deferred revenue |
11,039 |
(145) |
|||
|
Net cash used in operating activities |
(25,485) |
(8,992) |
|||
|
Cash flows from investing activities: |
|||||
|
Proceeds from sales of equipment |
10,086 |
5,741 |
|||
|
Investment in and net advances from unconsolidated affiliates |
(160) |
70 |
|||
|
Increase in restricted cash |
(1,045) |
(38) |
|||
|
Capital expenditures |
(25,141) |
(15,007) |
|||
|
Other |
- |
10 |
|||
|
Net cash used in investing activities |
(16,260) |
(9,224) |
|||
|
Cash flows from financing activities: |
|||||
|
Net change in revolving notes with maturities of 90 days or less |
27,935 |
(9,150) |
|||
|
Proceeds from revolving notes with maturities longer than 90 days |
9,195 |
7,557 |
|||
|
Repayments of revolving notes with maturities longer than 90 days |
(8,941) |
(5,606) |
|||
|
Proceeds from the issuance of notes payable |
- |
2,500 |
|||
|
Repayments of notes payable |
(1,230) |
(1,243) |
|||
|
Investment by joint venture partner |
1,182 |
- |
|||
|
Excess tax benefit from restricted stock awards |
217 |
- |
|||
|
Net cash provided by (used in) financing activities |
28,358 |
(5,942) |
|||
|
Effect of exchange rate changes |
1,100 |
(5,209) |
|||
|
Decrease in cash and cash equivalents |
(12,287) |
(29,367) |
|||
|
Cash and cash equivalents |
|||||
|
Beginning of period |
53,571 |
50,222 |
|||
|
End of period |
$ 41,284 |
$ 20,855 |
|||
|
THE GREENBRIER COMPANIES, INC. |
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|
Supplemental Information |
||||||||||
|
Quarterly Results of Operations |
||||||||||
|
(In thousands, except per share amounts, unaudited) |
||||||||||
|
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. |
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|
THE GREENBRIER COMPANIES, INC. |
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|
Supplemental Information |
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|
Reconciliation of Net Earnings attributable to Greenbrier to Adjusted EBITDA (1) |
|||||||||||
|
(In thousands, unaudited) |
|||||||||||
|
Three Months Ended November 30, |
Three Months Ended August 31, |
||||||||||
|
2012 |
2011 |
2012 |
|||||||||
|
Net earnings attributable to Greenbrier |
$ 10,427 |
$ 14,517 |
$ 7,404 |
||||||||
|
Interest and foreign exchange |
5,900 |
5,383 |
6,236 |
||||||||
|
Income tax expense |
4,586 |
7,797 |
10,593 |
||||||||
|
Depreciation and amortization |
10,923 |
9,889 |
11,768 |
||||||||
|
Adjusted EBITDA |
$ 31,836 |
$ 37,586 |
$ 36,001 |
||||||||
|
(1) |
AdjustedEBITDA is not a financial measure under generally accepted accounting principles (GAAP). We define Adjusted EBITDA as earnings attributable to Greenbrier before 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 November 30, 2012 |
|||||
|
Backlog Activity (units) |
|||||
|
Beginning backlog |
10,700 |
||||
|
Orders received |
1,400 |
||||
|
Production held as Leased railcars for syndication |
(200) |
||||
|
Production sold directly to third parties |
(2,200) |
||||
|
Ending backlog |
9,700 |
||||
|
Delivery Information (units) |
|||||
|
Production sold directly to third parties |
2,200 |
||||
|
Sales of Leased railcars for syndication |
700 |
||||
|
Total deliveries |
2,900 |
||||
|
THE GREENBRIER COMPANIES, INC. |
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|
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 November 30, |
Three Months Ended August 31, |
|||||
|
2012 |
2011 |
2012 |
||||
|
Weighted average basic common shares outstanding (1) |
27,144 |
25,463 |
27,148 |
|||
|
Dilutive effect of warrants |
802 |
1,881 |
756 |
|||
|
Dilutive effect of convertible notes (2) |
6,045 |
6,045 |
6,045 |
|||
|
Weighted average diluted common shares outstanding |
33,991 |
33,389 |
33,949 |
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|
(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. |
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|
(2) |
The dilutive effect of the 2018 Convertible notes are included as they were considered dilutive under the "if converted" method as further discussed below. The dilutive effect of the 2026 Convertible notes was excluded from the share calculations as the stock price for each period presented was less than the initial conversion price of $48.05 and therefore considered anti-dilutive. |
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Dilutive 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 the 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 November 30, |
Three Months Ended August 31, |
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|
2012 |
2011 |
2012 |
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|
Net earnings attributable to Greenbrier |
$ 10,427 |
$ 14,517 |
$ 7,404 |
|||||
|
Add back: |
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|
Interest and debt issuance costs on the 2018 Convertible notes, net of tax |
1,430 |
1,376 |
1,416 |
|||||
|
Earnings before interest and debt issuance costs on convertible notes |
$ 11,857 |
$ 15,893 |
$ 8,820 |
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|
Weighted average diluted common shares outstanding |
33,991 |
33,389 |
33,949 |
|||||
|
Diluted earnings per share (1) |
$ 0.35 |
$ 0.48 |
$ 0.26 |
|||||
|
(1) Diluted earnings per share was calculated as follows: |
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|
Earnings before interest and debt issuance costs on convertible notes |
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|
Weighted average diluted common shares outstanding |
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|
THE GREENBRIER COMPANIES, INC. |
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|
Supplemental Information |
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|
Reconciliation of Basic Earnings Per Share to Economic Earnings Per Share (1) |
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|
(In thousands, except per share amounts, unaudited) |
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|
The shares used in the computation of the Company's basic and economic earnings per common share are reconciled as follows: |
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|
Three Months Ended November 30, |
Three Months Ended August 31, |
|||||
|
2012 |
2011 |
2012 |
||||
|
Weighted average basic common shares outstanding |
27,144 |
25,463 |
27,148 |
|||
|
Dilutive effect of warrants |
802 |
1,881 |
756 |
|||
|
Weighted average economic diluted common shares outstanding |
27,946 |
27,344 |
27,904 |
|||
|
Net earnings attributable to Greenbrier |
$ 10,427 |
$ 14,517 |
$ 7,404 |
|||
|
Economic earnings per share |
$ 0.37 |
$ 0.53 |
$ 0.27 |
|||
|
(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. |
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SOURCE The Greenbrier Companies, Inc. (GBX)
