Press Releases

Greenbrier Reports Fourth Quarter Results
~ Quarterly EPS of $1.06
~~ Announces orders for 2,300 railcars valued at $200 million
~~ Cash flow from operations in 2016 exceeded $330 million
~~ Issues 2017 earnings guidance of $3.25 - $3.75 per share

LAKE OSWEGO, Ore., Oct. 25, 2016 /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE: GBX) today reported financial results for its fourth fiscal quarter and full year ended August 31, 2016.

Fourth Quarter Highlights

  • Net earnings attributable to Greenbrier for the quarter were $33.6 million, or $1.06 per diluted share, on revenue of $595.2 million.
  • Adjusted EBITDA for the quarter was $104.4 million, or 17.5% of revenue.
  • Diversified orders for 2,300 new railcars were received during this quarter, valued at over $200 million, or an average price of approximately $87,000 per railcar.
  • New railcar backlog as of August 31, 2016 was 27,500 units with an estimated value of $3.19 billion (average unit sale price of $116,000). Backlog reflects a 1,200 unit reduction resulting from customer settlements that yield favorable economic and other considerations.
  • New railcar deliveries totaled 4,600 units for the quarter, compared to 4,300 units for the quarter ended May 31, 2016.
  • Marine backlog as of August 31, 2016 was approximately $114 million.
  • Board declared a quarterly dividend of $0.21 per share, payable on December 1, 2016 to shareholders as of November 10, 2016.

Fiscal Year 2016 Highlights     

  • Net earnings were $183.2 million, or $5.73 per diluted share, on record revenue of $2.68 billion.
  • Record Adjusted EBITDA was $474.0 million, or 17.7% of revenue, compared to 16.7% of revenue in fiscal 2015.
  • New railcar deliveries totaled 20,300 units.
  • Orders totaled 7,500 units valued over $700 million across a broad range of railcar types.
  • Cash provided by operating activities increased 72% to over $330 million.
  • Net Funded Debt : LTM EBITDA ratio improved to 0.2x from 0.5x in fiscal 2015.
  • Nearly $57 million returned to shareholders through dividend and share repurchases.

Progress on Longer Term Financial Goals

  • Fourth quarter aggregate gross margin, was 20.1%, consistent with our goal of at least 20% gross margin by the second half of fiscal 2016.
  • We achieved an ROIC of 24.8% in fiscal 2016, in line with our target of 25.0%, and an improvement from the 23.7% achieved in fiscal 2015.

William A. Furman, Chairman and CEO, said, "We delivered strong results for the fourth quarter and fiscal 2016. We ended the year with a strong balance sheet, ample liquidity and very little net debt. This positions Greenbrier to continue to invest internationally in high ROIC markets, as well as successfully navigate through less robust North American market conditions. We addressed industry challenges during fiscal 2016 as we encountered a weaker market in North America. Our employees successfully executed our plan for the year. We appreciate their hard work along with the confidence and trust of our customers as we have diversified and grown internationally."

Furman continued, "Entering fiscal 2017, our diversified backlog provides us with strong visibility, while we remain adaptable and prepared for market recovery and growth. Recently, we worked with customers to resolve commercial terms related to 1,200 sand cars. Under these arrangements, Greenbrier received meaningful monetary and other valuable economic consideration. Our deep customer relationships are advantageous in the current market conditions as we work to achieve mutually beneficial solutions." 

"Internationally, we are creating a global network that enables Greenbrier to capture share in emerging railcar markets where freight car markets are stronger. These include the nations of the Gulf Cooperation Council (GCC), Africa, Eurasia and Latin America. We are making new investments that extend our core competency in freight railcar building, engineering and aftermarket services for all railroad gauges in these new markets." Furman added, "In August, we acquired a 19.5% ownership stake in the railcar casting operations of Amsted-Maxion Cruzeiro which raised our direct and indirect interest in railcar manufacturer Greenbrier-Maxion to 35%, and expands our manufacturing presence in Brazil. In September, we began fulfillment of the 1,200 tank car order placed by Saudi Railway Company (SAR) in early fiscal 2016. Most recently, we announced the formation of Greenbrier-Astra Rail that will create a world-class European railcar business, capitalizing on demand in Western Europe where the aging railcar fleet will enter a replacement cycle in the next few years. It provides a strong value-added platform for our customers in Western Europe, as well as a launch pad for other business in Eurasia and the GCC."

Furman concluded, "In the year ahead, a moderating railcar replacement cycle in North America will favorably position well-capitalized companies like Greenbrier to seize opportunities in the market, which often emerge suddenly.  We remain committed to our overall strategy of investing for future growth and generating long-term value for our shareholders with an emphasis on solid ROIC."

Business Outlook

Based on current business trends, industry forecasts and production schedules for fiscal 2017, Greenbrier believes:

  • Deliveries will be approximately 14,000 – 16,000 units
  • Revenue will be $2.0$2.4 billion
  • Diluted EPS will be in the range of $3.25$3.75

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 FY16

Q3 FY16 

Sequential Comparison – Main Drivers  

Revenue

$595.2M

$612.9M

Down 2.9% primarily due to lower volume of sales from acquired railcar portfolio

Gross margin

20.1%

20.7%

Down 60 bps primarily due to product mix changes and lower scrap pricing

Selling and

administrative expense

$40.6M

$43.3M

Down 6.2% due to Q3 including higher long-term incentive compensation

Net gain on disposition

of equipment

$4.5M

$0.3M

Increase primarily reflects insurance recovery proceeds from 2015 losses

Adjusted EBITDA

$104.4M

$99.5M

Stronger operating cash flow

Effective tax rate

24.1%

27.9%

Reflects a change in the geographic mix of earnings

Net earnings attributable

to noncontrolling interest

$26.8M

$24.2M

Driven by timing of deliveries and higher margin from our GIMSA JV

Net earnings attributable

to Greenbrier

$33.6M

$35.4M


Diluted EPS

$1.06

$1.12


 

Segment Summary


Q4 FY16

Q3 FY16

Sequential Comparison – Main Drivers

Manufacturing

  Revenue

$484.6M

$458.5M

Up 5.7% due to higher deliveries

  Gross margin

21.0%

23.1%

Down 210 bps primarily due to a change in product mix

  Operating margin (1)

18.5%

20.2%


  Deliveries

4,600

4,300


Wheels & Parts

  Revenue

$74.8M

$78.4M

Down 4.6% primarily attributable to lower wheel and component volumes

  Gross margin

7.0%

11.0%

Down 400 bps primarily due to a less favorable product mix and continued challenging operating environment

  Operating margin (1)

5.7%

7.4%


Leasing & Services

  Revenue

$35.8M

$76.0M

Decline due to lower volume of sales from acquired railcar portfolio

  Gross margin

35.5%

16.8%

Up due to lower volume of sales from acquired railcar portfolio, which is dilutive

  Operating margin (1) (2)

25.3%

10.9%


  Lease fleet utilization

91.0%

94.9%

Impacted by off-lease tank cars; placed on lease subsequent

to quarter end



(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 2016 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website.  Teleconference details are as follows:

  • October 25, 2016
  • 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 international supplier of equipment and services to the freight rail transportation markets. Greenbrier designs, builds and markets freight railcars in North America and Europe, we build freight railcars and rail castings in Brazil through a strategic partnership, and build and market marine barges in North America. Recently, through our European manufacturing operations, we also began delivery of US-designed tank cars in Saudi Arabia. In October 2016, we entered into an agreement with Astra Rail Management GmbH to form a new company, Greenbrier-Astra Rail, which will create an end-to-end, Europe-based freight railcar manufacturing, engineering and repair business. We expect this combination will be completed during 2017. We are a leading provider of wheel services, parts, leasing and other services to the railroad and related transportation industries in North America and a provider of freight railcar repair, refurbishment and retrofitting services in North America through a joint venture partnership with Watco Companies, LLC. Through other joint ventures we produce rail castings, tank heads and other railcar components. Greenbrier owns a lease fleet of over 9,000 railcars and performs management services for over 268,000 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, 2016, 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,
2016

     May 31,

        2016

 February 29,
2016

November 30,
2015

   August 31,
2015

Assets






   Cash and cash equivalents

$    222,679

$   214,440

$    283,541

$    197,633

$    172,930

   Restricted cash

24,279

8,669

8,877

9,818

8,869

   Accounts receivable, net 

232,517

213,510

228,072

237,213

196,029

   Inventories

365,805

458,068

421,243

444,023

445,535

   Leased railcars for syndication

144,932

136,812

179,975

238,911

212,534

   Equipment on operating leases, net

306,266

232,791

235,171

252,641

255,391

   Property, plant and equipment, net

329,990

318,010

310,019

307,196

303,135

   Investment in unconsolidated affiliates

98,682

89,297

86,850

86,658

87,270

   Intangibles and other assets, net

69,475

71,022

73,296

76,157

65,554

   Goodwill

43,265

43,265

43,265

43,265

43,265


$ 1,837,890

$ 1,785,884

$ 1,870,309

$ 1,893,515

$ 1,790,512







Liabilities and Equity






   Revolving notes

$                -

$                -

$       75,000

$    163,888

$      50,888

   Accounts payable and accrued liabilities

369,754

370,652

401,010

384,670

455,213

   Deferred income taxes

51,619

50,390

55,204

63,483

60,657

   Deferred revenue

95,721

68,158

84,362

42,351

33,836

   Notes payable

303,969

306,808

322,539

324,668

326,429







   Total equity - Greenbrier

874,311

840,086

800,940

771,945

732,838

   Noncontrolling interest

142,516

149,790

131,254

142,510

130,651

   Total equity

1,016,827

989,876

932,194

914,455

863,489


$ 1,837,890

$ 1,785,884

$  1,870,309

$ 1,893,515

$ 1,790,512

 

THE GREENBRIER COMPANIES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)




Years ending August 31,



2016


2015


2014


Revenue







   Manufacturing

$       2,096,331


$       2,136,051


$       1,624,916


   Wheels & Parts

322,395


371,237


495,627


   Leasing & Services

260,798


97,990


83,419



2,679,524


2,605,278


2,203,962


Cost of revenue







   Manufacturing

1,630,554


1,691,414


1,374,008


   Wheels & Parts

293,751


334,680


463,938


   Leasing & Services

203,782


41,831


43,796



2,128,087


2,067,925


1,881,742









Margin

551,437


537,353


322,220









Selling and administrative

158,681


151,791


125,270


Net gain on disposition of equipment

(15,796)


(1,330)


(15,039)


Gain on contribution to joint venture

-


-


(29,006)


Restructuring charges

-


-


1,475


Earnings from operations

408,552


386,892


239,520









Other costs







Interest and foreign exchange

13,502


11,179


18,695


Earnings before income tax and earnings from unconsolidated affiliates

 

395,050


 

375,713


 

220,825


Income tax expense

(112,322)


(112,160)


(72,401)


Earnings before earnings from  unconsolidated affiliates

 

282,728


 

263,553


 

148,424


Earnings from unconsolidated affiliates

2,096


1,756


1,355









Net earnings

284,824


265,309


149,779


Net earnings attributable to noncontrolling interest

(101,611)


(72,477)


(37,860)









Net earnings attributable to Greenbrier

$          183,213


$            192,832


$          111,919









Basic earnings per common share:

$                6.28


$                 6.85


$                3.97









Diluted earnings per common share:

$                5.73


$                 5.93


$                3.44









Weighted average common shares:







Basic

29,156


28,151


28,164


Diluted

32,468


33,328


34,209









Dividends declared per common share

$                0.81


$                0.60


$                 0.15









 

THE GREENBRIER COMPANIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)



Years Ended August 31,


2016


2015


2014


Cash flows from operating activities:







    Net earnings

$         284,824


$       265,309


$       149,779


    Adjustments to reconcile net earnings to net cash provided by operating activities:







      Deferred income taxes

(8,935)


(20,151)


(4,687)


      Depreciation and amortization

63,345


45,156


40,422


      Net gain on disposition of equipment

(15,796)


(1,330)


(15,039)


      Stock based compensation expense

24,037


19,459


11,285


      Gain on contribution to joint venture

-


-


(29,006)


      Noncontrolling interest adjustments

526


17,215


2,774


     Other

560


1,184


576


      Decrease (increase) in assets:







          Accounts receivable, net

(32,051)


13,652


(23,749)


          Inventories

53,711


(143,849)


(9,675)


          Leased railcars for syndication

19,154


(90,614)


(57,779)


          Other

(16,989)


575


(4,069)


    Increase (decrease) in liabilities:







          Accounts payable and accrued liabilities

(91,428)


72,419


63,362


          Deferred revenue

50,712


13,308


11,713


    Net cash provided by operating activities

331,670


192,333


135,907


Cash flows from investing activities:







    Proceeds from sales of assets

103,715


5,295


54,235


    Capital expenditures

(139,013)


(105,989)


(70,227)


    Decrease (increase) in restricted cash

(15,410)


271


(333)


    Investment in and advances to unconsolidated affiliates

(12,855)


(34,453)


(13,753)


    Cash distribution from joint ventures

7,855


3,345


-


    Net cash used in investing activities

(55,708)


(131,531)


(30,078)


Cash flows from financing activities:







    Net changes in revolving notes with maturities of 90 days or less

(49,000)


49,000


-


    Proceeds from revolving notes with maturities longer than 90 days

-


44,451


37,819


   Repayments of revolving notes with maturities longer than 90 days

(1,888)


(55,644)


(72,947)


   Proceeds from issuance of notes payable

-


-


200,000


    Repayments of notes payable

(22,299)


(7,475)


(128,797)


    Debt issuance costs

(4,161)


-


(382)


    Decrease (increase) in restricted cash

-


11,000


(11,000)


    Repurchase of stock

(33,498)


(69,950)


(33,583)


    Dividends

(23,303)


(16,491)


(4,123)


    Cash distribution to joint venture partner

(95,092)


(20,375)


(5,076)


    Investment by joint venture partner

5,400


-


419


    Excess tax benefit from restricted stock awards

2,813


2,908


109


    Other

(887)


(248)


-


    Net cash used in financing activities

(221,915)


(62,824)


(17,561)


    Effect of exchange rate changes

(4,298)


(9,964)


(787)


    Increase (decrease) in cash and cash equivalents

49,749


(11,986)


87,481


Cash and cash equivalents







Beginning of period

172,930


184,916


97,435


End of period

$            222,679


$       172,930


$      184,916























 

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

 (In thousands, except per share amounts, unaudited)


Operating Results by Quarter for 2016 are as follows:



First


Second


Third


Fourth


Total













Revenue











   Manufacturing

$        698,661


$       454,531


$      458,494


$      484,645


$  2,096,331


   Wheels & Parts

78,729


90,458


78,417


74,791


322,395


   Leasing & Services

24,999


124,090


75,955


35,754


260,798



802,389


669,079


612,866


595,190


2,679,524


Cost of revenue











   Manufacturing

533,033


361,827


352,775


382,919


1,630,554


   Wheels & Parts

73,002


81,388


69,818


69,543


293,751


   Leasing & Services

11,589


105,973


63,175


23,045


203,782



617,624


549,188


485,768


475,507


2,128,087













Margin

184,765


119,891


127,098


119,683


551,437













Selling and administrative expense

36,549


38,244


43,280


40,608


158,681


Net gain on disposition of equipment

(269)


(10,746)


(311)


(4,470)


(15,796)


Earnings from operations

148,485


92,393


84,129


83,545


408,552













Other costs











Interest and foreign exchange

5,436


1,417


3,712


2,937


13,502


Earnings before income tax and earnings (loss) from unconsolidated affiliates

 

143,049


 

90,976


 

80,417


 

80,608


 

395,050


Income tax expense

(44,719)


(25,734)


(22,449)


(19,420)


(112,322)


Earnings before earnings (loss) from  unconsolidated affiliates

 

98,330


 

65,242


 

57,968


 

61,188


 

282,728


Earnings (loss) from unconsolidated affiliates

383


974


1,564


(825)


2,096


Net earnings

98,713


66,216


59,532


60,363


284,824


Net earnings attributable to noncontrolling interest

 

(29,280)


 

(21,348)


 

(24,180)


 

(26,803)


 

(101,611)


Net earnings attributable to Greenbrier

$        69,433


$        44,868


$         35,352


$       33,560


$     183,213













Basic earnings per common share (1)

$             2.36


$            1.54


$            1.22


$           1.15


$           6.28


Diluted earnings per common share (1)

$             2.15


$            1.41


$            1.12


$           1.06


$           5.73




(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 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 before earnings (loss) from unconsolidated affiliates

 

35,227


 

61,231


 

69,343


 

97,752


 

263,553


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 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, 2016:











Revenue


Earnings (loss) from operations



External


Intersegment


  Total


External


Intersegment


Total


Manufacturing

$       484,645


$          83,563


$        568,208


$        89,879


$           23,358


$     113,237


Wheels & Parts

74,791


8,362


83,153


4,228


447


4,675


Leasing & Services

35,754


2,657


38,411


9,055


2,657


11,712


Eliminations

-


(94,582)


(94,582)


-


(26,462)


(26,462)


Corporate

-


-


-


(19,617)


-


(19,617)



$       595,190


$                   -


$        595,190


$        83,545


$                    -


$       83,545












Three months ended May 31, 2016:





















Revenue


Earnings (loss) from operations



External


Intersegment


  Total


External


Intersegment


Total


Manufacturing

$          458,494


$             5,595


$         464,089


$           92,713


$               923


$      93,636


Wheels & Parts

78,417


10,058


88,475


5,811


711


6,522


Leasing & Services

75,955


601


76,556


8,298


601


8,899


Eliminations

-


(16,254)


(16,254)


-


(2,235)


(2,235)


Corporate

-


-


-


(22,693)


-


(22,693)



$          612,866


$                     -


$         612,866


$           84,129


$                   -


$       84,129









Total assets



August 31,


May 31,



2016


2016


Manufacturing

$        701,296


$         641,090


Wheels & Parts

275,599


301,474


Leasing & Services

518,263


523,989


Unallocated

342,732


319,331



$       1,837,890


$       1,785,884


 

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,
2016


May 31,
2016


Revenue

$                 84,100


$              95,700


Earnings (loss) from operations

$                    (500)


$                3,000


Total assets

$               247,600


$            255,400







 

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

(In thousands, excluding backlog and delivery units, unaudited)


Reconciliation of Net earnings to Adjusted EBITDA






Three Months Ended


Year Ended





August 31,
2016


May 31,
2016


August 31,
2016

Net earnings

$             60,363


$             59,532


$         284,824

Interest and foreign exchange

2,937


3,712


13,502

Income tax expense

19,420


22,449


112,322

Depreciation and amortization

21,664


13,839


63,345

Adjusted EBITDA

$           104,384


$             99,532


$         473,993
















 




Three Months
Ended
August 31,
2016


Year
Ended
August 31,
2016


Backlog Activity (units)







Beginning backlog

31,200


41,300


Orders received

2,300


7,500


Orders removed

(1,200)


(1,200)


Production held as Leased railcars for syndication

(800)


(3,600)


Production sold directly to third parties

(4,000)


(16,500)


Ending backlog

27,500


27,500







Delivery Information (units)





Production sold directly to third parties

4,000


16,500


Sales of Leased railcars for syndication

600


3,800


Total deliveries

4,600


20,300


 

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,
2016

May 31,
2016

Weighted average basic common shares outstanding (1)

29,079

29,059

Dilutive effect of convertible notes (2)

3,250

3,224

Dilutive effect of performance awards (3)

118

59

Weighted average diluted common shares outstanding

32,447

32,342






(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.

(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,
2016


May 31,
2016

Net earnings attributable to Greenbrier

 

$           33,560


 

$          35,352

Add back:




Interest and debt issuance costs on the 2018 Convertible notes, net of tax

733


733

Earnings before interest and debt issuance costs on convertible notes

$           34,293


$          36,085

Weighted average diluted common shares outstanding

32,447


32,342





Diluted earnings per share

$               1.06


$              1.12

 

SOURCE The Greenbrier Companies, Inc. (GBX)

For further information: Lorie Tekorius, Justin Roberts, 503-684-7000
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