LAKE OSWEGO, Ore., July 1, 2015 /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE: GBX) today reported financial results for its third fiscal quarter ended May 31, 2015.
Third Quarter Highlights
- Net earnings attributable to Greenbrier for the quarter were $42.8 million, or $1.33 per diluted share, on record revenue of $714.6 million.
- Results for the third quarter include non-recurring costs of approximately $5.2 million after-tax, or $0.16 per diluted share. These costs include professional fees and other transaction costs associated with a potential acquisition, for which discussions terminated in June, and our advocacy of new tank car safety regulations. In addition, a significant decline in scrap metal prices adversely affected our wheel services business by $1.1 million after-tax, or $0.03 per diluted share.
- Adjusted EBITDA for the quarter was a record $116.3 million, or 16.3% of revenue.
- New railcar backlog as of May 31, 2015 was 45,100 units with an estimated value of $4.86 billion (average unit sale price of $108,000), compared to 46,000 units with an estimated value of $4.78 billion (average unit sale price of $104,000) as of February 28, 2015.
- Diversified orders for 5,300 new railcars valued at $640 million were received during the quarter.
- New railcar deliveries totaled 5,700 units for the quarter, compared to 5,200 units for the quarter ended February 28, 2015.
- Marine backlog as of May 31, 2015 was approximately $70 million.
- Board declares a quarterly dividend of $0.15 per share payable on August 5, 2015 to shareholders of record as of July 15, 2015.
- Repurchased 28,363 shares of common stock at a cost of $1.5 million during the quarter.
Progress on Longer Term Financial Goals
- Aggregate gross margin expanded to 20.9%, compared to 19.9% in the prior quarter, reaching the goal of at least 20% gross margin by the second half of fiscal 2016.
- We remain on track to reach the goal of at least 25% ROIC by the second half of fiscal 2016. Annualized ROIC of 21.3% reflects record operating results tempered by working capital needs associated with higher production and syndication volumes, and planned capital expenditure programs.
- Our Net Funded Debt : LTM EBITDA continued to improve to 0.9 times.
William A. Furman, Chairman and CEO, said, "Our diversified and integrated business model continues to pay off, with record revenue, adjusted EBITDA and deliveries this quarter. Aggregate gross margin grew to 20.9%, led by execution from our manufacturing and lease syndication businesses. We achieved our goal of at least 20% aggregate margin a full year ahead of plan despite an abrupt decline in scrap metal prices which adversely affected our wheel services business. Results for the quarter include non-recurring costs of about $5.2 million after-tax, or $0.16 per diluted share, associated with a potential acquisition, for which discussions terminated in June, and advocacy of new tank car safety regulations. Our financial outlook for the year, excluding these non-recurring items, remains within previous guidance."
"Since the beginning of our fiscal year on September 1, 2014, we have received orders for 29,500 new railcar units valued at $3.0 billion, with approximately 80% of these orders being non-energy related. Our railcar backlog value has grown every quarter since the first quarter of fiscal 2014. The most recent industry data reported for North America is as of March 31, 2015. Our book-to-bill ratio in North America for the 12 months ended March 31, 2015 was 2.6x, nearly 50% higher than 1.8x for the industry as a whole. Our strong commercial performance and diversified product offerings allowed us to capture 43% of all orders placed across the railcar industry in the most recently reported calendar quarter. With deliveries that stretch into 2018, we have a long runway ahead to deliver robust earnings and free cash flow, driving shareholder value. We will continue our balanced approach of reinvesting free cash flow into projects that generate high rates of return, seeking acquisitions in our core competencies and returning capital to shareholders. We remain confident in the long-term strength of our strategy and integrated business model."
Share Repurchases
We repurchased 28,363 shares of common stock at a cost of $1.5 million during the quarter. Cumulative repurchases from October 31, 2013 through May 31, 2015 aggregate 1,655,587 shares at a cost of $82.9 million, or an average price of $50.05 per share. We have $42.1 million available under our share repurchase program.
Business Outlook
Based on current business trends and industry forecasts, and excluding non-recurring costs of $7.5 million pre-tax, or $0.16 per diluted share from the third quarter, Greenbrier reaffirms previously provided fiscal 2015 annual guidance for Revenue ($2.6 to $2.7 billion), Adjusted EBITDA ($420 to $435 million) and Deliveries (~21,500). Guidance for annual diluted EPS is narrowed to $5.70 to $5.85, excluding non-recurring costs in the third quarter of $0.16 per diluted share.
While gross margins continue to increase overall, management does not believe this track will be linear.
As noted in the "Safe Harbor" statement, there are risks to achieving this guidance. Certain orders and backlog in this release are subject to customary documentation and completion of terms.
Financial Summary
|
Q3 FY15 |
Q2 FY15 |
Sequential Comparison – Main Drivers |
|
|
Revenue |
$714.6M |
$630.1M |
Up 13.4% primarily due to increased deliveries |
|
Gross margin |
20.9% |
19.9% |
Up 100 bps due to favorable product mix and pricing and improved production efficiencies in the manufacturing segment |
|
Selling and administrative expense |
$45.6M |
$32.9M |
Up 38.6% primarily due to fees and transaction costs associated with a potential acquisition, advocacy of new tank car regulations, and other costs as a result of operating at higher levels of activity |
|
Gain on disposition of equipment |
$0.7M |
$0.1M |
Timing of sales fluctuates and is opportunistic, typically may range from $1.0M to $3.0M per quarter |
|
Adjusted EBITDA |
$116.3M |
$102.7M |
Up 13.2% driven by higher deliveries and margins |
|
Effective tax rate |
30.7% |
32.4% |
Reflects a change in the geographic mix of earnings and in GIMSA JV earnings as well as an update to the annual effective rate to 31.5% |
|
Net earnings attributable to noncontrolling interest |
$27.5M |
$10.7M |
Driven by an increase in deliveries and higher margin from our GIMSA JV |
|
Net earnings |
$42.8M |
$50.4M |
|
|
Diluted EPS |
$1.33 |
$1.57 |
Segment Summary
|
Q3 FY15 |
Q2 FY15 |
Sequential Comparison – Main Drivers |
|
|
Manufacturing |
|||
|
Revenue |
$593.4M |
$505.2M |
Up 17.5% primarily due to higher deliveries |
|
Gross margin |
21.5% |
20.2% |
Up 130 bps due to favorable product mix and pricing, and improved efficiencies |
|
Operating margin (1) |
19.5% |
18.0% |
|
|
Deliveries |
5,700 |
5,200 |
|
|
Wheels & Parts |
|||
|
Revenue |
$97.4M |
$102.6M |
Down 5.1% primarily attributable to lower wheel and component volumes |
|
Gross margin |
8.0% |
9.6% |
Down 160 bps primarily due to an adverse effect of lower scrap metal prices in our wheels business |
|
Operating margin (1) |
5.2% |
7.8% |
|
|
Leasing & Services |
|||
|
Revenue |
$23.8M |
$22.3M |
Up 6.7% primarily due to higher volume of rent-producing leased railcars for syndication |
|
Gross margin |
58.0% |
60.3% |
Down 230 bps due to certain maintenance and transportation costs |
|
Operating margin (1) (2) |
45.4% |
44.1% |
|
|
Lease fleet utilization |
97.6% |
99.5% |
|
|
(1) See supplemental segment information on page 11 for additional information. |
|
(2) Includes Net gain on disposition of equipment, which is excluded from gross margin. |
Conference Call
Greenbrier will host a teleconference to discuss its third quarter 2015 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. Teleconference details are as follows:
- July 1, 2015
- 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.
About Greenbrier
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 our 4 manufacturing facilities in the U.S. and Mexico and marine barges at our U.S. manufacturing facility. Greenbrier also sells reconditioned wheel sets and provides wheel services at 9 locations throughout the U.S. We recondition, manufacture and sell railcar parts at 4 U.S. sites. Greenbrier is a 50/50 joint venture partner with Watco Companies, LLC in GBW Railcar Services, LLC which repairs and refurbishes freight cars at 33 locations across North America, including 12 tank car repair and maintenance facilities certified by the Association of American Railroads. Greenbrier builds new railroad freight cars and refurbishes freight cars for the European market through our operations in Poland. Greenbrier owns approximately 8,800 railcars, and performs management services for approximately 245,000 railcars.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This press 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, restructuring plans, 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," "strategy," "could," "would," "should," "likely," "will," "may," "can," "designed to," "future," "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 and awards are not indicative of our financial results; uncertainty or changes 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; sovereign risk to contracts, exchange rates or property rights; 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, inefficiencies associated with expansion or start-up of production lines or increased production rates, changing technologies, transfer of production between facilities or non-performance of alliance partners, subcontractors or suppliers; ability to obtain suitable contracts for the sale of leased equipment and risks related to car hire and residual values; integration of current or future acquisitions and establishment of joint ventures; succession planning; discovery of defects in railcars or services resulting in increased warranty costs or litigation; physical damage or product or service liability claims that exceed our insurance coverage; train derailments or other accidents or claims that could subject us to legal claims; actions or inactions by various regulatory agencies including potential environmental remediation obligations or changing tank car or other rail car or railroad regulation; and issues arising from investigations of whistleblower complaints; 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, 2014, 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 Net earnings 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, this measure presented may differ from and may not be comparable to similarly titled measures used by other companies.
Annualized ROIC is calculated by taking year to date Earnings from operations, less cash paid for income taxes, net, which is then annualized and divided by the average balance of the sum of the Revolving notes, plus Notes payable, plus Total equity, less cash in excess of $40 million. The average is calculated based on the quarterly ending balances.
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THE GREENBRIER COMPANIES, INC. |
|||||
|
Consolidated Balance Sheets |
|||||
|
May 31, 2015 |
February 28, |
November 30, 2014 |
August 31, 2014 |
May 31, 2014 |
|
|
Assets |
|||||
|
Cash and cash equivalents |
$ 122,783 |
$ 145,512 |
$ 118,958 |
$ 184,916 |
$ 198,492 |
|
Restricted cash |
8,912 |
8,722 |
9,170 |
20,140 |
9,468 |
|
Accounts receivable, net |
214,890 |
207,488 |
191,532 |
199,679 |
181,850 |
|
Inventories |
426,655 |
418,590 |
372,039 |
305,656 |
337,197 |
|
Leased railcars for syndication |
213,197 |
198,010 |
177,221 |
125,850 |
96,332 |
|
Equipment on operating leases, net |
257,962 |
261,234 |
264,615 |
258,848 |
274,863 |
|
Property, plant and equipment, net |
285,570 |
271,977 |
258,303 |
243,698 |
215,942 |
|
Investment in unconsolidated affiliates |
91,217 |
71,225 |
72,342 |
69,359 |
12,129 |
|
Goodwill |
43,265 |
43,265 |
43,265 |
43,265 |
57,416 |
|
Intangibles and other assets, net |
62,664 |
64,386 |
61,937 |
65,757 |
66,883 |
|
$ 1,727,115 |
$ 1,690,409 |
$ 1,569,382 |
$ 1,517,168 |
$ 1,450,572 |
|
|
Liabilities and Equity |
|||||
|
Revolving notes |
$ 92,507 |
$ 90,563 |
$ 46,527 |
$ 13,081 |
$ 18,082 |
|
Accounts payable and accrued liabilities |
405,544 |
417,844 |
374,509 |
383,289 |
356,541 |
|
Deferred income taxes |
75,572 |
77,632 |
81,808 |
81,383 |
79,526 |
|
Deferred revenue |
24,209 |
28,287 |
27,067 |
20,603 |
21,153 |
|
Notes payable |
346,279 |
441,326 |
443,303 |
445,091 |
447,068 |
|
Total equity - Greenbrier |
672,396 |
541,491 |
519,884 |
511,390 |
476,145 |
|
Noncontrolling interest |
110,608 |
93,266 |
76,284 |
62,331 |
52,057 |
|
Total equity |
783,004 |
634,757 |
596,168 |
573,721 |
528,202 |
|
$ 1,727,115 |
$ 1,690,409 |
$ 1,569,382 |
$ 1,517,168 |
$ 1,450,572 |
|
|
THE GREENBRIER COMPANIES, INC. |
||||||||
|
Consolidated Statements of Income |
||||||||
|
Three Months Ended May 31, |
Nine Months Ended May 31, |
|||||||
|
2015 |
2014 |
2015 |
2014 |
|||||
|
Revenue |
||||||||
|
Manufacturing |
$ 593,376 |
$ 425,583 |
$ 1,478,566 |
$ 1,132,811 |
||||
|
Wheels & Parts |
97,407 |
140,663 |
286,671 |
390,604 |
||||
|
Leasing & Services |
23,823 |
27,039 |
74,576 |
62,441 |
||||
|
714,606 |
593,285 |
1,839,813 |
1,585,856 |
|||||
|
Cost of revenue |
||||||||
|
Manufacturing |
465,658 |
351,829 |
1,184,922 |
969,841 |
||||
|
Wheels & Parts |
89,645 |
129,825 |
259,285 |
365,740 |
||||
|
Leasing & Services |
10,017 |
14,856 |
32,942 |
34,090 |
||||
|
565,320 |
496,510 |
1,477,149 |
1,369,671 |
|||||
|
Margin |
149,286 |
96,775 |
362,664 |
216,185 |
||||
|
Selling and administrative expense |
45,595 |
34,800 |
112,223 |
89,034 |
||||
|
Net gain on disposition of equipment |
(720) |
(5,619) |
(924) |
(14,686) |
||||
|
Restructuring charges |
- |
56 |
- |
1,475 |
||||
|
Earnings from operations |
104,411 |
67,538 |
251,365 |
140,362 |
||||
|
Other costs |
||||||||
|
Interest and foreign exchange |
4,285 |
5,437 |
9,355 |
14,280 |
||||
|
Earnings before income tax and earnings from unconsolidated affiliates |
100,126 |
62,101 |
242,010 |
126,082 |
||||
|
Income tax expense |
(30,783) |
(16,303) |
(76,209) |
(36,708) |
||||
|
Earnings before earnings from unconsolidated affiliates |
69,343 |
45,798 |
165,801 |
89,374 |
||||
|
Earnings from unconsolidated affiliates |
982 |
298 |
1,552 |
272 |
||||
|
Net earnings |
70,325 |
46,096 |
167,353 |
89,646 |
||||
|
Net earnings attributable to noncontrolling interest |
(27,514) |
(12,508) |
(41,405) |
(25,083) |
||||
|
Net earnings attributable to Greenbrier |
$ 42,811 |
$ 33,588 |
$ 125,948 |
$ 64,563 |
||||
|
Basic earnings per common share: |
$ 1.54 |
$ 1.20 |
$ 4.58 |
$ 2.29 |
||||
|
Diluted earnings per common share: |
$ 1.33 |
$ 1.03 |
$ 3.91 |
$ 2.01 |
||||
|
Weighted average common shares: |
||||||||
|
Basic |
27,842 |
27,956 |
27,514 |
28,223 |
||||
|
Diluted |
33,000 |
34,001 |
33,262 |
34,268 |
||||
|
Dividends declared per common share: |
$ 0.15 |
$ - |
$ 0.45 |
$ - |
||||
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THE GREENBRIER COMPANIES, INC. |
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|
Consolidated Statements of Cash Flows |
|||||
|
Nine Months Ended May 31, |
|||||
|
2015 |
2014 |
||||
|
Cash flows from operating activities: |
|||||
|
Net earnings |
$ 167,353 |
$ 89,646 |
|||
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|||||
|
Deferred income taxes |
(5,245) |
(6,745) |
|||
|
Depreciation and amortization |
33,258 |
30,824 |
|||
|
Net gain on disposition of equipment |
(924) |
(14,686) |
|||
|
Stock based compensation expense |
13,176 |
6,454 |
|||
|
Noncontrolling interest adjustments |
20,371 |
2,953 |
|||
|
Other |
1,008 |
388 |
|||
|
Increase in assets: |
|||||
|
Accounts receivable, net |
(8,769) |
(26,226) |
|||
|
Inventories |
(124,906) |
(21,722) |
|||
|
Leased railcars for syndication |
(90,914) |
(25,420) |
|||
|
Other |
(1,666) |
(2,491) |
|||
|
Increase in liabilities: |
|||||
|
Accounts payable and accrued liabilities |
23,135 |
36,507 |
|||
|
Deferred revenue |
3,680 |
12,258 |
|||
|
Net cash provided by operating activities |
29,557 |
81,740 |
|||
|
Cash flows from investing activities: |
|||||
|
Proceeds from sales of assets |
4,628 |
39,515 |
|||
|
Capital expenditures |
(75,892) |
(34,522) |
|||
|
Decrease (increase) in restricted cash |
228 |
(661) |
|||
|
Investment in and advances to unconsolidated affiliates |
(29,923) |
(1,253) |
|||
|
Other |
715 |
- |
|||
|
Net cash provided by (used in) investing activities |
(100,244) |
3,079 |
|||
|
Cash flows from financing activities: |
|||||
|
Net change in revolving notes with maturities of 90 days or less |
73,000 |
- |
|||
|
Proceeds from revolving notes with maturities longer than 90 days |
42,563 |
34,674 |
|||
|
Repayments of revolving notes with maturities longer than 90 days |
(36,137) |
(64,801) |
|||
|
Proceeds from issuance of notes payable |
- |
200,000 |
|||
|
Repayments of notes payable |
(5,504) |
(126,821) |
|||
|
Debt issuance costs |
- |
(382) |
|||
|
Repurchase of stock |
(48,451) |
(26,293) |
|||
|
Dividends |
(12,069) |
- |
|||
|
Decrease in restricted cash |
11,000 |
- |
|||
|
Cash distribution to joint venture partner |
(12,489) |
(3,109) |
|||
|
Investment by joint venture partner |
- |
419 |
|||
|
Excess tax benefit from restricted stock awards |
2,964 |
109 |
|||
|
Other |
(248) |
- |
|||
|
Net cash provided by financing activities |
14,629 |
13,796 |
|||
|
Effect of exchange rate changes |
(6,075) |
2,442 |
|||
|
Increase (decrease) in cash and cash equivalents |
(62,133) |
101,057 |
|||
|
Cash and cash equivalents |
|||||
|
Beginning of period |
184,916 |
97,435 |
|||
|
End of period |
$ 122,783 |
$ 198,492 |
|||
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THE GREENBRIER COMPANIES, INC. |
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|
Supplemental Information
|
||||||||
|
First |
Second |
Third |
Total |
|||||
|
Revenue |
||||||||
|
Manufacturing |
$ 379,949 |
$ 505,241 |
$ 593,376 |
$ 1,478,566 |
||||
|
Wheels & Parts |
86,624 |
102,640 |
97,407 |
286,671 |
||||
|
Leasing & Services |
28,485 |
22,268 |
23,823 |
74,576 |
||||
|
495,058 |
630,149 |
714,606 |
1,839,813 |
|||||
|
Cost of revenue |
||||||||
|
Manufacturing |
316,037 |
403,227 |
465,658 |
1,184,922 |
||||
|
Wheels & Parts |
76,872 |
92,768 |
89,645 |
259,285 |
||||
|
Leasing & Services |
14,081 |
8,844 |
10,017 |
32,942 |
||||
|
406,990 |
504,839 |
565,320 |
1,477,149 |
|||||
|
Margin |
88,068 |
125,310 |
149,286 |
362,664 |
||||
|
Selling and administrative expense |
33,729 |
32,899 |
45,595 |
112,223 |
||||
|
Net gain on disposition of equipment |
(83) |
(121) |
(720) |
(924) |
||||
|
Earnings from operations |
54,422 |
92,532 |
104,411 |
251,365 |
||||
|
Other costs |
||||||||
|
Interest and foreign exchange |
3,141 |
1,929 |
4,285 |
9,355 |
||||
|
Earnings before income tax and earnings (loss) from unconsolidated affiliates |
51,281 |
90,603 |
100,126 |
242,010 |
||||
|
Income tax expense |
(16,054) |
(29,372) |
(30,783) |
(76,209) |
||||
|
Earnings before earnings (loss) from unconsolidated affiliates |
35,227 |
61,231 |
69,343 |
165,801 |
||||
|
Earnings (loss) from unconsolidated affiliates |
755 |
(185) |
982 |
1,552 |
||||
|
Net earnings |
35,982 |
61,046 |
70,325 |
167,353 |
||||
|
Net earnings attributable to noncontrolling interest |
(3,196) |
(10,695) |
(27,514) |
(41,405) |
||||
|
Net earnings attributable to Greenbrier |
$ 32,786 |
$ 50,351 |
$ 42,811 |
$ 125,948 |
||||
|
Basic earnings per common share (1) |
$ 1.19 |
$ 1.86 |
$ 1.54 |
$ 4.58 |
||||
|
Diluted earnings per common share (1) |
$ 1.01 |
$ 1.57 |
$ 1.33 |
$ 3.91 |
||||
|
(1) |
Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes using the treasury stock method when dilutive 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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|
Operating Results by Quarter for 2014 are as follows: |
||||||||||
|
First |
Second |
Third |
Fourth |
Total |
||||||
|
Revenue |
||||||||||
|
Manufacturing |
$ 359,473 |
$ 347,755 |
$ 425,583 |
$ 492,105 |
$ 1,624,916 |
|||||
|
Wheels & Parts (1) |
113,401 |
136,540 |
140,663 |
105,023 |
495,627 |
|||||
|
Leasing & Services |
17,481 |
17,921 |
27,039 |
20,978 |
83,419 |
|||||
|
490,355 |
502,216 |
593,285 |
618,106 |
2,203,962 |
||||||
|
Cost of revenue |
||||||||||
|
Manufacturing |
311,440 |
306,572 |
351,829 |
404,167 |
1,374,008 |
|||||
|
Wheels & Parts (1) |
107,975 |
127,940 |
129,825 |
98,198 |
463,938 |
|||||
|
Leasing & Services |
9,381 |
9,853 |
14,856 |
9,706 |
43,796 |
|||||
|
428,796 |
444,365 |
496,510 |
512,071 |
1,881,742 |
||||||
|
Margin |
61,559 |
57,851 |
96,775 |
106,035 |
322,220 |
|||||
|
Selling and administrative expense |
26,109 |
28,125 |
34,800 |
36,236 |
125,270 |
|||||
|
Net gain on disposition of equipment |
(3,651) |
(5,416) |
(5,619) |
(353) |
(15,039) |
|||||
|
Restructuring charges |
879 |
540 |
56 |
- |
1,475 |
|||||
|
Gain on contribution to joint venture |
- |
- |
- |
(29,006) |
(29,006) |
|||||
|
Earnings from operations |
38,222 |
34,602 |
67,538 |
99,158 |
239,520 |
|||||
|
Other costs |
||||||||||
|
Interest and foreign exchange |
4,744 |
4,099 |
5,437 |
4,415 |
18,695 |
|||||
|
Earnings before income tax and earnings (loss) from unconsolidated affiliates |
33,478 |
30,503 |
62,101 |
94,743 |
220,825 |
|||||
|
Income tax expense |
(10,522) |
(9,883) |
(16,303) |
(35,693) |
(72,401) |
|||||
|
Earnings before earnings (loss) from unconsolidated affiliates |
22,956 |
20,620 |
45,798 |
59,050 |
148,424 |
|||||
|
Earnings (loss) from unconsolidated affiliates |
41 |
(67) |
298 |
1,083 |
1,355 |
|||||
|
Net earnings |
22,997 |
20,553 |
46,096 |
60,133 |
149,779 |
|||||
|
Net earnings attributable to noncontrolling interest |
(7,609) |
(4,966) |
(12,508) |
(12,777) |
(37,860) |
|||||
|
Net earnings attributable to Greenbrier |
$ 15,388 |
$ 15,587 |
$ 33,588 |
$ 47,356 |
$ 111,919 |
|||||
|
Basic earnings per common share (2) |
$ 0.54 |
$ 0.55 |
$ 1.20 |
$ 1.69 |
$ 3.97 |
|||||
|
Diluted earnings per common share (2) |
$ 0.49 |
$ 0.50 |
$ 1.03 |
$ 1.43 |
$ 3.44 |
|||||
|
(1) |
Wheels & Parts (previously known as Wheels, Repair & Parts) included our repair operations through July 18, 2014, at which time we and Watco, our joint venture partner, contributed our respective repair operations to GBW, an unconsolidated 50/50 joint venture. After July 18, 2014, the results of GBW are included in Earnings (loss) from unconsolidated affiliates as we account for our interest in GBW under the equity method of accounting. |
|
(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 dilutive effect of the 2026 Convertible Notes using the treasury stock method when dilutive 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
|
||||||||||||
|
Three months ended May 31, 2015: |
||||||||||||
|
Revenue |
Earnings (loss) from operations |
|||||||||||
|
External |
Intersegment |
Total |
External |
Intersegment |
Total |
|||||||
|
Manufacturing |
$ 593,376 |
$ 33 |
$ 593,409 |
$ 115,675 |
$ - |
$ 115,675 |
||||||
|
Wheels & Parts |
97,407 |
7,605 |
105,012 |
5,078 |
607 |
5,685 |
||||||
|
Leasing & Services |
23,823 |
11,722 |
35,545 |
10,824 |
11,722 |
22,546 |
||||||
|
Eliminations |
- |
(19,360) |
(19,360) |
- |
(12,329) |
(12,329) |
||||||
|
Corporate |
- |
- |
- |
(27,166) |
- |
(27,166) |
||||||
|
$ 714,606 |
$ - |
$ 714,606 |
$ 104,411 |
$ - |
$ 104,411 |
|||||||
|
Three months ended February 28, 2015: |
||||||||||||
|
Revenue |
Earnings (loss) from operations |
|||||||||||
|
External |
Intersegment |
Total |
External |
Intersegment |
Total |
|||||||
|
Manufacturing |
$ 505,241 |
$ 81 |
$ 505,322 |
$ 90,876 |
$ 9 |
$ 90,885 |
||||||
|
Wheels & Parts |
102,640 |
5,934 |
108,574 |
7,976 |
653 |
8,629 |
||||||
|
Leasing & Services |
22,268 |
18,627 |
40,895 |
9,811 |
18,627 |
28,438 |
||||||
|
Eliminations |
- |
(24,642) |
(24,642) |
- |
(19,289) |
(19,289) |
||||||
|
Corporate |
- |
- |
- |
(16,131) |
- |
(16,131) |
||||||
|
$ 630,149 |
$ - |
$ 630,149 |
$ 92,532 |
$ - |
$ 92,532 |
|||||||
|
Total assets |
||||
|
May 31, |
February 28 |
|||
|
2015 |
2015 |
|||
|
Manufacturing |
$ 697,342 |
$ 663,567 |
||
|
Wheels & Parts |
290,363 |
291,358 |
||
|
Leasing & Services |
538,896 |
516,835 |
||
|
Unallocated |
200,514 |
218,649 |
||
|
$ 1,727,115 |
$ 1,690,409 |
|||
The results of operations for GBW, which are shown below, are not reflected in the above tables as the investment is accounted for under the equity method of accounting.
|
As of and for the Three Months Ended |
|||||
|
May 31, 2015 |
February 28, 2015 |
||||
|
Revenue |
$ 88,800 |
$ 83,300 |
|||
|
Earnings (loss) from operations |
$ 200 |
$ (2,000) |
|||
|
Total assets |
$ 230,100 |
$ 217,400 |
|||
|
THE GREENBRIER COMPANIES, INC. |
|||||||
|
Supplemental Information (In thousands, excluding backlog and delivery units, unaudited)
Reconciliation of Net earnings to Adjusted EBITDA |
|||||||
|
Three Months Ended |
|||||||
|
May 31, 2015 |
February 28, |
||||||
|
Net earnings |
$ 70,325 |
$ 61,046 |
|||||
|
Interest and foreign exchange |
4,285 |
1,929 |
|||||
|
Income tax expense |
30,783 |
29,372 |
|||||
|
Depreciation and amortization |
10,860 |
10,348 |
|||||
|
Adjusted EBITDA |
$ 116,253 |
$ 102,695 |
|||||
|
Adjusted EBITDA is not a financial measure under generally accepted accounting principles (GAAP). We define Adjusted EBITDA as Net earnings 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 May 31, 2015 |
||||
|
Backlog Activity (units) |
||||
|
Beginning backlog |
46,000 |
|||
|
Orders received |
5,300 |
|||
|
Production held as Leased railcars for syndication |
(1,500) |
|||
|
Production sold directly to third parties |
(4,700) |
|||
|
Ending backlog |
45,100 |
|||
|
Delivery Information (units) |
||||
|
Production sold directly to third parties |
4,700 |
|||
|
Sales of Leased railcars for syndication |
1,000 |
|||
|
Total deliveries |
5,700 |
|||
|
THE GREENBRIER COMPANIES, INC. |
|
Supplemental Information |
|
(In thousands, except per share amounts, unaudited) |
|
Reconciliation of common shares outstanding and diluted earnings per share |
|
The shares used in the computation of the Company's basic and diluted earnings per common share are reconciled as follows: |
|
Three Months Ended |
|||
|
May 31, 2015 |
February 28, 2015 |
||
|
Weighted average basic common shares outstanding (1) |
27,842 |
27,028 |
|
|
Dilutive effect of convertible notes (2) |
5,158 |
6,045 |
|
|
Weighted average diluted common shares outstanding |
33,000 |
33,073 |
|
|
(1) |
Restricted stock grants and restricted stock units, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. |
|
(2) |
The dilutive effect of the 2018 Convertible notes are included in the Weighted average diluted common shares outstanding as they were considered dilutive under the "if converted" method as further discussed below. The dilutive effect of the 2026 Convertible notes are included in the Weighted average diluted common shares outstanding as the average stock price during the period exceeded the conversion price of $48.05. |
Diluted earnings per share was calculated using the more dilutive of two approaches. The first approach includes the dilutive effect of 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.
|
Three Months Ended |
||
|
May 31, 2015 |
February 28, 2015 |
|
|
Net earnings attributable to Greenbrier |
$ 42,811 |
$ 50,351 |
|
Add back: |
||
|
Interest and debt issuance costs on the 2018 Convertible notes, net of tax |
1,234 |
1,416 |
|
Earnings before interest and debt issuance costs on convertible notes |
$ 44,045 |
$ 51,767 |
|
Weighted average diluted common shares outstanding |
33,000 |
33,073 |
|
Diluted earnings per share |
$ 1.33 |
$ 1.57 |
SOURCE The Greenbrier Companies, Inc. (GBX)