LAKE OSWEGO, Ore., Oct. 30, 2015 /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE: GBX) today reported financial results for its fourth fiscal quarter and full year ended August 31, 2015.
Fourth Quarter Highlights
- Net earnings attributable to Greenbrier for the quarter were a record $66.9 million, or $2.02 per diluted share, on record revenue of $765.5 million.
- Adjusted EBITDA for the quarter was a record $147.6 million, or 19.3% of revenue.
- New railcar backlog as of August 31, 2015 was 41,300 units with an estimated value of $4.71 billion (average unit sale price of $114,000), compared to 45,100 units with an estimated value of $4.86 billion (average unit sale price of $108,000) as of May 31, 2015.
- Diversified orders for 2,900 new railcars valued at $470 million were received during the quarter.
- New railcar deliveries totaled 6,200 units for the quarter, compared to 5,700 units for the quarter ended May 31, 2015.
- Marine backlog as of August 31, 2015 was approximately $52 million.
- Quarterly dividend increases 33% to $0.20 per share, payable on December 2, 2015 to shareholders of record as of November 11, 2015.
- Repurchased 495,952 shares of common stock at a cost of $21.8 million during the quarter, and an additional 490,123 shares at a cost of $17.8 million subsequent to August 31, 2015.
- Nearly $145 million of capital returned to shareholders through dividends and share repurchases since October 2013.
- Board authorizes $100 million increase to share repurchase program, bringing cumulative repurchase authorizations to $225 million since October 31, 2013.
Fiscal Year 2015 Highlights
- Record net earnings were $192.8 million, or $5.93 per diluted share, on revenue of $2.61 billion.
- Adjusted EBITDA was a record $433.8 million or 16.7% of revenue.
- Achieved Return on Invested Capital (ROIC) of 23.7%.
- New railcar deliveries totaled 21,100 units.
- Orders totaled 32,400 units valued at $3.44 billion across a broad range of railcar types.
- Cash generated by operating activities was $192.3 million.
Progress on Longer Term Financial Goals
- Aggregate gross margin expanded to 22.8%, compared to 20.9% 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 for the second half of fiscal 2016. ROIC of 23.7% for fiscal 2015 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 ratio continued to improve to 0.5 times.
William A. Furman, Chairman and CEO, said, "We continued to realize positive operating momentum in the fourth quarter, leading to record revenue, margin and earnings for both the quarter and fiscal year as a whole. We intend to build on this operating momentum, using the strength of our integrated model and our diversified high margin new railcar backlog, some of which stretches into 2020. We expect these factors will lead to another solid year of earnings and free cash flow in fiscal 2016."
"While recent new railcar order activity has been dampened by broad economic factors, it is too early to determine whether the level of new orders will continue at this muted pace. We are an agile company and, if needed, we are ready to adapt quickly to market conditions. We remain optimistic about the long term fundamentals and drivers of new railcar demand," Furman continued. "Industry forecasts support this view, with above long-term average levels of new railcar deliveries expected in North America through 2019. Our strategy to diversify our product offerings, create efficient, flexible manufacturing capacity in low-cost facilities, drive more value through our lease syndication model, and increase revenue diversity in international markets, along with our strong balance sheet, positions us well."
"We are actively expanding our geographic reach and now sell into more global markets than ever before," Furman added. "Most recently, we announced our entry into markets in the Middle East with an order for 1,200 tank cars from Saudi Railway Company (SAR). Earlier this year, we expanded into South American markets through our investment in a Brazilian railcar manufacturer, now known as Greenbrier-Maxion. Greenbrier's global growth complements and leverages our engineering expertise and production facilities in Mexico and Poland and at Gunderson, our flagship manufacturing facility in Oregon. Our international activity extends the Greenbrier brand and provides business diversification and growth opportunities over the longer term."
Furman concluded, "Greenbrier will continue its balanced approach to investing in projects that generate high rates of return, seeking growth opportunities in our core competencies, and returning capital to shareholders."
Share Repurchases
We repurchased 495,952 shares of common stock at a cost of $21.8 million during the quarter and an additional 490,123 shares at a cost of $17.8 million subsequent to August 31, 2015. Cumulative repurchases since October 31, 2013 aggregate 2,641,662 shares at a cost of $122.5 million. We have $102.5 million remaining available under our cumulative $225 million share repurchase program.
Subsequent Events
Subsequent to quarter end, the Company refinanced its $290 million North American revolving credit facility, with a new five-year $550 million facility. The Company also acquired a diversified portfolio of nearly 4,000 leased railcars previously owned by WLR-Greenbrier Rail Inc. and managed by Greenbrier, with the intent to sell them in the near term to institutional investors. This portfolio acquisition is consistent with the Company's successful stated strategy to drive more volume through its lease syndication and asset management model.
Business Outlook
Based on current business trends, industry forecasts and production schedules for fiscal 2016, Greenbrier believes:
- Deliveries will be approximately 20,000 – 22,500 units
- Revenue will exceed $2.8 billion
- Diluted EPS will be in the range of $5.65 to $6.15
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
|
Q4 FY15 |
Q3 FY15 |
Sequential Comparison – Main Drivers | |
|
Revenue |
$765.5M |
$714.6M |
Up 7.1% primarily due to increased deliveries |
|
Gross margin |
22.8% |
20.9% |
Up 190 bps due to favorable product mix and pricing and improved production efficiencies in the manufacturing segment |
|
Selling and administrative expense |
$39.6M |
$45.6M |
Down 13.2% primarily due to non-recurring costs in Q3
|
|
Gain on disposition of equipment |
$0.4M |
$0.7M |
Timing of sales fluctuates and is opportunistic |
|
Adjusted EBITDA |
$147.6M |
$116.3M |
Up 26.9% driven by higher deliveries and margin and non-recurring costs in Q3 |
|
Effective tax rate |
26.9% |
30.7% |
Reflects a change in the geographic mix of earnings and in GIMSA JV earnings |
|
Net earnings attributable to noncontrolling interest |
$31.1M |
$27.5M |
Driven by an increase in deliveries and higher margin from our GIMSA JV |
|
Net earnings |
$66.9M |
$42.8M |
|
|
Diluted EPS |
$2.02 |
$1.33 |
Segment Summary
|
Q4 FY15 |
Q3 FY15 |
Sequential Comparison – Main Drivers | |
|
Manufacturing | |||
|
Revenue |
$657.5M |
$593.4M |
Up 10.8% primarily due to higher deliveries |
|
Gross margin |
23.0% |
21.5% |
Up 150 bps due to favorable product mix and pricing and improved efficiencies |
|
Operating margin (1) |
21.0% |
19.5% |
|
|
Deliveries |
6,200 |
5,700 |
|
|
Wheels & Parts | |||
|
Revenue |
$84.6M |
$97.4M |
Down 13.1% primarily attributable to lower wheel and component volumes |
|
Gross margin |
10.8% |
8.0% |
Up 280 bps primarily due to an adverse effect of lower scrap metal prices in Q3 |
|
Operating margin (1) |
7.8% |
5.2% |
|
|
Leasing & Services | |||
|
Revenue |
$23.4M |
$23.8M |
Down 1.7% primarily due to a slight decline in management revenue associated with the timing of maintenance activities |
|
Gross margin |
62.0% |
58.0% |
Up 400 bps due to higher margin interim rents on leased railcars for syndication |
|
Operating margin (1) (2) |
43.6% |
45.4% |
|
|
Lease fleet utilization |
96.6% |
97.6% |
|
|
(1) See supplemental segment information on page 12 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 fourth quarter 2015 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. Teleconference details are as follows:
- October 30, 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 12,600 railcars, and performs management services for approximately 258,000 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, available manufacturing capacity, restructuring plans, new railcar delivery volumes and schedules, 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, costs or inefficiencies associated with expansion, start-up, or changing of production lines or changes in 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; 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.
|
THE GREENBRIER COMPANIES, INC. | |||||
|
Consolidated Balance Sheets | |||||
|
(In thousands, unaudited) | |||||
|
August 31, 2015 |
May 31, 2015 |
February 28, 2015 |
November 30, 2014 |
August 31, 2014 | |
|
Assets |
|||||
|
Cash and cash equivalents |
$ 172,930 |
$ 122,783 |
$ 145,512 |
$ 118,958 |
$ 184,916 |
|
Restricted cash |
8,869 |
8,912 |
8,722 |
9,170 |
20,140 |
|
Accounts receivable, net |
196,029 |
214,890 |
207,488 |
191,532 |
199,679 |
|
Inventories |
445,535 |
426,655 |
418,590 |
372,039 |
305,656 |
|
Leased railcars for syndication |
212,534 |
213,197 |
198,010 |
177,221 |
125,850 |
|
Equipment on operating leases, net |
255,391 |
257,962 |
261,234 |
264,615 |
258,848 |
|
Property, plant and equipment, net |
303,135 |
285,570 |
271,977 |
258,303 |
243,698 |
|
Investment in unconsolidated affiliates |
87,270 |
91,217 |
71,225 |
72,342 |
69,359 |
|
Intangibles and other assets, net |
65,554 |
62,664 |
64,386 |
61,937 |
65,757 |
|
Goodwill |
43,265 |
43,265 |
43,265 |
43,265 |
43,265 |
|
$ 1,790,512 |
$ 1,727,115 |
$ 1,690,409 |
$ 1,569,382 |
$ 1,517,168 | |
|
Liabilities and Equity |
|||||
|
Revolving notes |
$ 50,888 |
$ 92,507 |
$ 90,563 |
$ 46,527 |
$ 13,081 |
|
Accounts payable and accrued liabilities |
455,213 |
405,544 |
417,844 |
374,509 |
383,289 |
|
Deferred income taxes |
60,657 |
75,572 |
77,632 |
81,808 |
81,383 |
|
Deferred revenue |
33,836 |
24,209 |
28,287 |
27,067 |
20,603 |
|
Notes payable |
326,429 |
346,279 |
441,326 |
443,303 |
445,091 |
|
Total equity - Greenbrier |
732,838 |
672,396 |
541,491 |
519,884 |
511,390 |
|
Noncontrolling interest |
130,651 |
110,608 |
93,266 |
76,284 |
62,331 |
|
Total equity |
863,489 |
783,004 |
634,757 |
596,168 |
573,721 |
|
$ 1,790,512 |
$ 1,727,115 |
$ 1,690,409 |
$ 1,569,382 |
$ 1,517,168 | |
|
THE GREENBRIER COMPANIES, INC. | |||||
|
Consolidated Statements of Operations | |||||
|
(In thousands, except per share amounts, unaudited) | |||||
|
Years ending August 31, | |||||
|
2015 |
2014 |
2013 | |||
|
Revenue |
|||||
|
Manufacturing |
$ 2,136,051 |
$ 1,624,916 |
$ 1,215,734 | ||
|
Wheels & Parts |
371,237 |
495,627 |
469,222 | ||
|
Leasing & Services |
97,990 |
83,419 |
71,462 | ||
|
2,605,278 |
2,203,962 |
1,756,418 | |||
|
Cost of revenue |
|||||
|
Manufacturing |
1,691,414 |
1,374,008 |
1,082,889 | ||
|
Wheels & Parts |
334,680 |
463,938 |
431,501 | ||
|
Leasing & Services |
41,831 |
43,796 |
35,655 | ||
|
2,067,925 |
1,881,742 |
1,550,045 | |||
|
Margin |
537,353 |
322,220 |
206,373 | ||
|
Selling and administrative |
151,791 |
125,270 |
103,175 | ||
|
Net gain on disposition of equipment |
(1,330) |
(15,039) |
(18,072) | ||
|
Gain on contribution to joint venture |
- |
(29,006) |
- | ||
|
Goodwill impairment |
- |
- |
76,900 | ||
|
Restructuring charges |
- |
1,475 |
2,719 | ||
|
Earnings from operations |
386,892 |
239,520 |
41,651 | ||
|
Other costs |
|||||
|
Interest and foreign exchange |
11,179 |
18,695 |
22,158 | ||
|
Earnings before income tax and earnings from unconsolidated affiliates |
375,713 |
220,825 |
19,493 | ||
|
Income tax expense |
(112,160) |
(72,401) |
(25,060) | ||
|
Earnings (loss) before earnings from unconsolidated affiliates |
263,553 |
148,424 |
(5,567) | ||
|
Earnings from unconsolidated affiliates |
1,756 |
1,355 |
186 | ||
|
Net earnings (loss) |
265,309 |
149,779 |
(5,381) | ||
|
Net earnings attributable to noncontrolling interest |
(72,477) |
(37,860) |
(5,667) | ||
|
Net earnings (loss) attributable to Greenbrier |
$ 192,832 |
$ 111,919 |
$ (11,048) | ||
|
Basic earnings (loss) per common share: |
$ 6.85 |
$ 3.97 |
$ (0.41) | ||
|
Diluted earnings (loss) per common share: |
$ 5.93 |
$ 3.44 |
$ (0.41) | ||
|
Weighted average common shares: |
|||||
|
Basic |
28,151 |
28,164 |
26,678 | ||
|
Diluted |
33,328 |
34,209 |
26,678 | ||
|
Dividends declared per common share |
$ 0.60 |
$ 0.15 |
$ - | ||
|
THE GREENBRIER COMPANIES, INC. | |||||||||||||
|
Consolidated Statements of Cash Flows | |||||||||||||
|
(In thousands, unaudited) | |||||||||||||
|
Years Ended August 31, | |||||||||||||
|
2015 |
2014 |
2013 | |||||||||||
|
Cash flows from operating activities: |
|||||||||||||
|
Net earnings (loss) |
$ 265,309 |
$ 149,779 |
$ (5,381) | ||||||||||
|
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: |
|||||||||||||
|
Deferred income taxes |
(20,151) |
(4,687) |
(9,662) | ||||||||||
|
Depreciation and amortization |
45,156 |
40,422 |
41,447 | ||||||||||
|
Net gain on disposition of equipment |
(1,330) |
(15,039) |
(18,072) | ||||||||||
|
Accretion of debt discount |
- |
- |
2,455 | ||||||||||
|
Stock based compensation expense |
19,459 |
11,285 |
6,302 | ||||||||||
|
Gain on contribution to joint venture |
- |
(29,006) |
- | ||||||||||
|
Goodwill impairment |
- |
- |
76,900 | ||||||||||
|
Noncontrolling interest adjustments |
17,215 |
2,774 |
(2,144) | ||||||||||
|
Other |
1,184 |
576 |
1,089 | ||||||||||
|
Decrease (increase) in assets: |
|||||||||||||
|
Accounts receivable, net |
13,652 |
(23,749) |
(7,323) | ||||||||||
|
Inventories |
(143,849) |
(9,675) |
19,045 | ||||||||||
|
Leased railcars for syndication |
(90,614) |
(57,779) |
22,881 | ||||||||||
|
Other |
575 |
(4,069) |
969 | ||||||||||
|
Increase (decrease) in liabilities: |
|||||||||||||
|
Accounts payable and accrued liabilities |
72,419 |
63,362 |
(15,429) | ||||||||||
|
Deferred revenue |
13,308 |
11,713 |
(8,485) | ||||||||||
|
Net cash provided by operating activities |
192,333 |
135,907 |
104,592 | ||||||||||
|
Cash flows from investing activities: |
|||||||||||||
|
Proceeds from sales of assets |
5,295 |
54,235 |
75,338 | ||||||||||
|
Capital expenditures |
(105,989) |
(70,227) |
(60,827) | ||||||||||
|
Decrease (increase) in restricted cash |
271 |
(333) |
(2,530) | ||||||||||
|
Investment in and advances to unconsolidated affiliates |
(34,453) |
(13,753) |
(2,240) | ||||||||||
|
Other |
3,345 |
- |
(3,582) | ||||||||||
|
Net cash provided by (used in) investing activities |
(131,531) |
(30,078) |
6,159 | ||||||||||
|
Cash flows from financing activities: |
|||||||||||||
|
Net changes in revolving notes with maturities of 90 days or less |
49,000 |
- |
(16,396) | ||||||||||
|
Proceeds from revolving notes with maturities longer than 90 days |
44,451 |
37,819 |
38,177 | ||||||||||
|
Repayments of revolving notes with maturities longer than 90 days |
(55,644) |
(72,947) |
(34,966) | ||||||||||
|
Proceeds from issuance of notes payable |
- |
200,000 |
2,186 | ||||||||||
|
Repayments of notes payable |
(7,475) |
(128,797) |
(58,831) | ||||||||||
|
Debt issuance costs |
- |
(382) |
- | ||||||||||
|
Decrease (increase) in restricted cash |
11,000 |
(11,000) |
- | ||||||||||
|
Repurchase of stock |
(69,950) |
(33,583) |
- | ||||||||||
|
Dividends |
(16,491) |
(4,123) |
- | ||||||||||
|
Cash distribution to joint venture partner |
(20,375) |
(5,076) |
- | ||||||||||
|
Investment by joint venture partner |
- |
419 |
3,206 | ||||||||||
|
Excess tax benefit from restricted stock awards |
2,908 |
109 |
900 | ||||||||||
|
Other |
(248) |
- |
(8) | ||||||||||
|
Net cash used in financing activities |
(62,824) |
(17,561) |
(65,732) | ||||||||||
|
Effect of exchange rate changes |
(9,964) |
(787) |
(1,155) | ||||||||||
|
Increase (decrease) in cash and cash equivalents |
(11,986) |
87,481 |
43,864 | ||||||||||
|
Cash and cash equivalents |
|||||||||||||
|
Beginning of period |
184,916 |
97,435 |
53,571 | ||||||||||
|
End of period |
$ 172,930 |
$ 184,916 |
$ 97,435 | ||||||||||
|
THE GREENBRIER COMPANIES, INC. | |||||||||
|
Supplemental Information | |||||||||
|
(In thousands, except per share amounts, unaudited) | |||||||||
|
Operating Results by Quarter for 2015 are as follows: | |||||||||
|
First |
Second |
Third |
Fourth |
Total | |||||
|
Revenue |
|||||||||
|
Manufacturing |
$ 379,949 |
$ 505,241 |
$ 593,376 |
$ 657,485 |
$ 2,136,051 | ||||
|
Wheels & Parts |
86,624 |
102,640 |
97,407 |
84,566 |
371,237 | ||||
|
Leasing & Services |
28,485 |
22,268 |
23,823 |
23,414 |
97,990 | ||||
|
495,058 |
630,149 |
714,606 |
765,465 |
2,605,278 | |||||
|
Cost of revenue |
|||||||||
|
Manufacturing |
316,037 |
403,227 |
465,658 |
506,492 |
1,691,414 | ||||
|
Wheels & Parts |
76,872 |
92,768 |
89,645 |
75,395 |
334,680 | ||||
|
Leasing & Services |
14,081 |
8,844 |
10,017 |
8,889 |
41,831 | ||||
|
406,990 |
504,839 |
565,320 |
590,776 |
2,067,925 | |||||
|
Margin |
88,068 |
125,310 |
149,286 |
174,689 |
537,353 | ||||
|
Selling and administrative expense |
33,729 |
32,899 |
45,595 |
39,568 |
151,791 | ||||
|
Net gain on disposition of equipment |
(83) |
(121) |
(720) |
(406) |
(1,330) | ||||
|
Earnings from operations |
54,422 |
92,532 |
104,411 |
135,527 |
386,892 | ||||
|
Other costs |
|||||||||
|
Interest and foreign exchange |
3,141 |
1,929 |
4,285 |
1,824 |
11,179 | ||||
|
Earnings before income tax and earnings (loss) from unconsolidated affiliates |
51,281 |
90,603 |
100,126 |
133,703 |
375,713 | ||||
|
Income tax expense |
(16,054) |
(29,372) |
(30,783) |
(35,951) |
(112,160) | ||||
|
Earnings (loss) from unconsolidated affiliates |
755 |
(185) |
982 |
204 |
1,756 | ||||
|
Net earnings |
35,982 |
61,046 |
70,325 |
97,956 |
265,309 | ||||
|
Net earnings attributable to noncontrolling interest |
(3,196) |
(10,695) |
(27,514) |
(31,072) |
(72,477) | ||||
|
Net earnings attributable to Greenbrier |
$ 32,786 |
$ 50,351 |
$ 42,811 |
$ 66,884 |
$ 192,832 | ||||
|
Basic earnings per common share (1) |
$ 1.19 |
$ 1.86 |
$ 1.54 |
$ 2.23 |
$ 6.85 | ||||
|
Diluted earnings per common share (1) |
$ 1.01 |
$ 1.57 |
$ 1.33 |
$ 2.02 |
$ 5.93 | ||||
|
(1) |
Quarterly amounts may 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 and restricted stock units that are subject to performance criteria, for which actual levels of performance above target have been achieved, 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 | |||||||||
|
(In thousands, except per share amounts, unaudited) | |||||||||
|
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 |
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 |
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 (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 (1) |
$ 0.54 |
$ 0.55 |
$ 1.20 |
$ 1.69 |
$ 3.97 | ||||
|
Diluted earnings per common share (1) |
$ 0.49 |
$ 0.50 |
$ 1.03 |
$ 1.43 |
$ 3.44 | ||||
|
(1) |
Quarterly amounts may 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 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 | |||||||||||
|
(In thousands, unaudited) | |||||||||||
|
Segment Information | |||||||||||
|
Three months ended August 31, 2015: |
|||||||||||
|
Revenue |
Earnings (loss) from operations | ||||||||||
|
External |
Intersegment |
Total |
External |
Intersegment |
Total | ||||||
|
Manufacturing |
$ 657,485 |
$ - |
$ 657,485 |
$ 138,319 |
$ - |
$ 138,319 | |||||
|
Wheels & Parts |
84,566 |
6,807 |
91,373 |
6,577 |
585 |
7,162 | |||||
|
Leasing & Services |
23,414 |
19,067 |
42,481 |
10,210 |
19,067 |
29,277 | |||||
|
Eliminations |
- |
(25,874) |
(25,874) |
- |
(19,652) |
(19,652) | |||||
|
Corporate |
- |
- |
- |
(19,579) |
- |
(19,579) | |||||
|
$ 765,465 |
$ - |
$ 765,465 |
$ 135,527 |
$ - |
$ 135,527 | ||||||
|
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 | ||||||
|
Total assets | |||
|
August 31, |
May 31, | ||
|
2015 |
2015 | ||
|
Manufacturing |
$ 675,409 |
$ 697,342 | |
|
Wheels & Parts |
291,798 |
290,363 | |
|
Leasing & Services |
549,073 |
538,896 | |
|
Unallocated |
274,232 |
200,514 | |
|
$ 1,790,512 |
$ 1,727,115 | ||
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 | |||
|
August 31, |
May 31, | ||
|
Revenue |
$ 95,200 |
$ 88,800 | |
|
Earnings from operations |
$ 300 |
$ 200 | |
|
Total assets |
$ 239,900 |
$ 230,100 | |
|
THE GREENBRIER COMPANIES, INC. | |||||
|
Supplemental Information | |||||
|
(In thousands, excluding backlog and delivery units, unaudited) | |||||
|
Reconciliation of Net earnings to Adjusted EBITDA | |||||
|
Three Months Ended | |||||
|
August 31, 2015 |
May 31, 2015 | ||||
|
Net earnings |
$ 97,956 |
$ 70,325 | |||
|
Interest and foreign exchange |
1,824 |
4,285 | |||
|
Income tax expense |
35,951 |
30,783 | |||
|
Depreciation and amortization |
11,898 |
10,860 | |||
|
Adjusted EBITDA |
$ 147,629 |
$ 116,253 | |||
|
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 August 31, 2015 |
Year Ended August 31, 2015 | ||||
|
Backlog Activity (units) |
|||||
|
Beginning backlog |
45,100 |
31,500 | |||
|
Orders received |
2,900 |
32,400 | |||
|
Production held as Leased railcars for syndication |
(2,700) |
(8,200) | |||
|
Production sold directly to third parties |
(4,000) |
(14,400) | |||
|
Ending backlog |
41,300 |
41,300 | |||
|
Delivery Information (units) |
|||||
|
Production sold directly to third parties |
4,000 |
14,400 | |||
|
Sales of Leased railcars for syndication |
2,200 |
6,700 | |||
|
Total deliveries |
6,200 |
21,100 | |||
|
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 | ||
|
August 31, 2015 |
May 31, 2015 | |
|
Weighted average basic common shares outstanding (1) |
30,040 |
27,842 |
|
Dilutive effect of convertible notes (2) |
3,192 |
5,158 |
|
Dilutive effect of performance awards (3) |
165 |
- |
|
Weighted average diluted common shares outstanding |
33,397 |
33,000 |
|
(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. |
|
(3) |
Restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, and are included in Weighted average diluted shares outstanding when the company is in a net earnings position. |
Diluted earnings per share was calculated using the more dilutive of two approaches. The first approach includes the dilutive effect, using the treasury stock method, associated with shares underlying the 2026 Convertible notes and performance based restricted stock units that are subject to performance criteria, for which actual levels of performance above target have been achieved. 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 | ||
|
August 31, 2015 |
May 31, 2015 | |
|
Net earnings attributable to Greenbrier |
$ 66,884 |
$ 42,811 |
|
Add back: |
||
|
Interest and debt issuance costs on the 2018 Convertible notes, net of tax |
744 |
1,234 |
|
Earnings before interest and debt issuance costs on convertible notes |
$ 67,628 |
$ 44,045 |
|
Weighted average diluted common shares outstanding |
33,397 |
33,000 |
|
Diluted earnings per share |
$ 2.02 |
$ 1.33 |
SOURCE The Greenbrier Companies, Inc. (GBX)