LAKE OSWEGO, Ore., Jan. 6, 2017 /PRNewswire/ -- The Greenbrier Companies Inc., (NYSE: GBX) today reported financial results for its first fiscal quarter ended November 30, 2016.
First Quarter Highlights
- Net earnings attributable to Greenbrier for the quarter were $25.0 million, or $0.79 per diluted share, on revenue of $552.3 million.
- Adjusted EBITDA for the quarter was $85.7 million, or 15.5% of revenue.
- Cash provided by operating activities totaled $29.0 million for the quarter.
- Diversified orders for 2,400 new railcars were received during this quarter, valued at over $230 million, or an average price of approximately $98,000 per railcar.
- New railcar backlog as of November 30, 2016 was 25,800 units with an estimated value of $2.97 billion (average unit sale price of $115,000). Included in backlog are 3,800 covered hopper railcars for use in energy related sand transportation, of which 2,500 units, scheduled for production in 2018, are for a customer who is negotiating with us to modify the order.
- New railcar deliveries totaled 4,000 units for the quarter, compared to 4,600 units for the quarter ended August 31, 2016.
- Marine backlog as of November 30, 2016 was approximately $103 million.
- Board declares a quarterly dividend of $0.21 per share, payable on February 16, 2017 to shareholders as of January 26, 2017.
- Greenbrier is negotiating to exercise its option to increase its equity position in Brazilian railcar manufacturing joint venture, Greenbrier-Maxion, to 60%.
William A. Furman, Chairman and CEO, said, "Greenbrier's fiscal 2017 is off to a strong start with solid financial performance delivered during a demanding first quarter. We had healthy manufacturing margins on lower deliveries, a testament to the strength of our manufacturing and leasing operations. We continue to execute on our strategy of focusing on our core North American operations while pursuing targeted investments in international markets."
Furman continued, "Brazil's economic, business and political conditions have improved and forecasts indicate continued GDP improvement in 2017. Greenbrier's operations in Brazil and our relationship with our partners continue to grow. For the quarter ended November 30, 2016, our Brazilian railcar manufacturing joint venture Greenbrier-Maxion received orders and awards for over 2,000 railcars, which are not included in Greenbrier's reported orders. We have accelerated discussions to increase our interest in the Brazil operations with an incremental investment of nearly $24 million, which will be used to pay down high cost debt. Our facilities in Brazil include the largest railcar assembly plant in South America along with a castings facility. The need for high quality transportation equipment is poised to grow based in part on railcar fleet demographics with a high percentage of the fleet being older or obsolete."
Furman added, "As we pursue investments in growth opportunities, our solid financial returns in our core business in North America and internationally along with our strong balance sheet remain critical. These provide us the flexibility to compete effectively today while continuing to invest domestically and internationally for tomorrow. In addition, changes in the global trade environment will require robust risk management."
Furman concluded, "Based on our first quarter results, regular communications with customers and current production schedules in North America, we are reaffirming our guidance for the year. We will continue to seek opportunities to diversify by accessing new global markets, while streamlining our cost structures to maximize profitability in North America."
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 to $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
|
Q1 FY17 |
Q4 FY16 |
Sequential Comparison – Main Drivers | |
|
Revenue |
$552.3M |
$595.2M |
Down 7.2% primarily due to fewer deliveries |
|
Gross margin |
20.4% |
20.1% |
Up 30 bps due to product mix shifts |
|
Selling and administrative expense |
$41.2M |
$40.6M |
Up 1.5% due to employee related costs including long-term incentive compensation and increased legal and consulting costs |
|
Gain on disposition of equipment |
$1.1M |
$4.5M |
Decrease reflects more normalized levels; Q4 included insurance recovery proceeds from 2015 fire losses |
|
Adjusted EBITDA |
$85.7M |
$104.4M |
Lower revenue and operating margin |
|
Effective tax rate |
28.7% |
24.1% |
Reflects a change in the geographic mix of earnings |
|
Loss from unconsolidated affiliates |
($2.6M) |
($0.8M) |
Challenging after-markets operating environment in North America and high debt costs in Brazil |
|
Net earnings attributable to noncontrolling interest |
$23.0M |
$26.8M |
Change driven primarily by timing of deliveries from our GIMSA JV |
|
Net earnings attributable to Greenbrier |
$25.0M |
$33.6M |
|
|
Diluted EPS |
$0.79 |
$1.06 |
Segment Summary
|
Q1 FY17 |
Q4 FY16 |
Sequential Comparison – Main Drivers | |
|
Manufacturing | |||
|
Revenue |
$454.0M |
$484.6M |
Reflects fewer deliveries as production rates have slowed offset somewhat by marine activity |
|
Gross margin |
21.5% |
21.0% |
Up 50 bps primarily due to product mix shifts |
|
Operating margin (1) |
18.4% |
18.5% |
|
|
Deliveries |
4,000 |
4,600 |
|
|
Wheels & Parts | |||
|
Revenue |
$69.6M |
$74.8M |
Down 7.0% primarily attributable to product mix shifts |
|
Gross margin |
6.7% |
7.0% |
Down 30 bps reflecting continued challenging operating environment |
|
Operating margin (1) |
4.2% |
5.7% |
|
|
Leasing & Services | |||
|
Revenue |
$28.6M |
$35.8M |
Return to more normalized revenue levels |
|
Gross margin |
37.1% |
35.5% |
Up 160 bps due to higher margins on externally sourced railcar syndications |
|
Operating margin (1) (2) |
25.8% |
25.3% |
|
|
Lease fleet utilization |
94.2% |
91.0% |
|
|
(1) |
See supplemental segment information on page 10 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 first quarter 2017 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website.
Teleconference details are as follows:
- January 6, 2017
- 8:00 a.m. Pacific Standard Time
- Phone: 1-630-395-0143, Password: "Greenbrier"
- Real-time Audio Access: ("Newsroom" at http://www.gbrx.com)
Please access the site 10 minutes prior to the start time.
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. Through our European manufacturing operations, we recently 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 8,500 railcars and performs management services for over 265,000 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 adjust manufacturing capacity, restructuring plans, new railcar delivery volumes and schedules, changes 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; policies and priorities of the federal government regarding international trade and infrastructure; 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; 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, 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.
|
THE GREENBRIER COMPANIES, INC. | |||||
|
CONSOLIDATED BALANCE SHEETS | |||||
|
November 30, |
August 31, |
May 31, |
February 29, |
November 30, | |
|
Assets |
|||||
|
Cash and cash equivalents |
$ 233,790 |
$ 222,679 |
$ 214,440 |
$ 283,541 |
$ 197,633 |
|
Restricted cash |
8,642 |
24,279 |
8,669 |
8,877 |
9,818 |
|
Accounts receivable, net |
237,037 |
232,517 |
213,510 |
228,072 |
237,213 |
|
Inventories |
402,064 |
365,805 |
458,068 |
421,243 |
444,023 |
|
Leased railcars for syndication |
102,686 |
144,932 |
136,812 |
179,975 |
238,911 |
|
Equipment on operating leases, net |
305,586 |
306,266 |
232,791 |
235,171 |
252,641 |
|
Property, plant and equipment, net |
327,170 |
329,990 |
318,010 |
310,019 |
307,196 |
|
Investment in unconsolidated affiliates |
93,330 |
98,682 |
89,297 |
86,850 |
86,658 |
|
Intangibles and other assets, net |
63,780 |
67,359 |
68,648 |
70,709 |
73,333 |
|
Goodwill |
43,265 |
43,265 |
43,265 |
43,265 |
43,265 |
|
$ 1,817,350 |
$ 1,835,774 |
$ 1,783,510 |
$ 1,867,722 |
$ 1,890,691 | |
|
Liabilities and Equity |
|||||
|
Revolving notes |
$ - |
$ - |
$ - |
$ 75,000 |
$ 163,888 |
|
Accounts payable and accrued liabilities |
345,776 |
369,754 |
370,652 |
401,010 |
384,670 |
|
Deferred income taxes |
54,123 |
51,619 |
50,390 |
55,204 |
63,483 |
|
Deferred revenue |
85,358 |
95,721 |
68,158 |
84,362 |
42,351 |
|
Notes payable, net |
300,331 |
301,853 |
304,434 |
319,952 |
321,844 |
|
Total equity - Greenbrier |
880,725 |
874,311 |
840,086 |
800,940 |
771,945 |
|
Noncontrolling interest |
151,037 |
142,516 |
149,790 |
131,254 |
142,510 |
|
Total equity |
1,031,762 |
1,016,827 |
989,876 |
932,194 |
914,455 |
|
$ 1,817,350 |
$ 1,835,774 |
$ 1,783,510 |
$ 1,867,722 |
$ 1,890,691 | |
|
THE GREENBRIER COMPANIES, INC. | ||||||
|
CONSOLIDATED STATEMENTS OF INCOME | ||||||
|
Three Months Ended |
||||||
|
2016 |
2015 |
|||||
|
Revenue |
||||||
|
Manufacturing |
$ |
454,033 |
$ 698,661 |
|||
|
Wheels & Parts |
69,635 |
78,729 |
||||
|
Leasing & Services |
28,646 |
24,999 |
||||
|
552,314 |
802,389 |
|||||
|
Cost of revenue |
||||||
|
Manufacturing |
356,555 |
533,033 |
||||
|
Wheels & Parts |
64,978 |
73,002 |
||||
|
Leasing & Services |
18,030 |
11,589 |
||||
|
439,563 |
617,624 |
|||||
|
Margin |
112,751 |
184,765 |
||||
|
Selling and administrative |
41,213 |
36,549 |
||||
|
Net gain on disposition of equipment |
(1,122) |
(269) |
||||
|
Earnings from operations |
72,660 |
148,485 |
||||
|
Other costs |
||||||
|
Interest and foreign exchange |
1,724 |
5,436 |
||||
|
Earnings before income tax and earnings (loss) from unconsolidated affiliates |
70,936 |
143,049 |
||||
|
Income tax expense |
(20,386) |
(44,719) |
||||
|
Earnings before earnings (loss) from unconsolidated affiliates |
50,550 |
98,330 |
||||
|
Earnings (loss) from unconsolidated affiliates |
(2,584) |
383 |
||||
|
Net earnings |
47,966 |
98,713 |
||||
|
Net earnings attributable to noncontrolling interest |
(23,004) |
(29,280) |
||||
|
Net earnings attributable to Greenbrier |
$ |
24,962 |
$ 69,433 |
|||
|
Basic earnings per common share: |
$ |
0.86 |
$ 2.36 |
|||
|
Diluted earnings per common share: |
$ |
0.79 |
$ 2.15 |
|||
|
Weighted average common shares: |
||||||
|
Basic |
29,097 |
29,391 |
||||
|
Diluted |
32,412 |
32,578 |
||||
|
Dividends declared per common share |
$ |
0.21 |
$ 0.20 |
|||
|
THE GREENBRIER COMPANIES, INC. | |||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
|
Three Months Ended November 30, | |||||
|
2016 |
2015 | ||||
|
Cash flows from operating activities: |
|||||
|
Net earnings |
$ |
47,966 |
$ 98,713 | ||
|
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: |
|||||
|
Deferred income taxes |
2,756 |
3,019 | |||
|
Depreciation and amortization |
15,595 |
12,974 | |||
|
Net gain on disposition of equipment |
(1,122) |
(269) | |||
|
Stock based compensation expense |
5,343 |
5,301 | |||
|
Noncontrolling interest adjustments |
(3,781) |
262 | |||
|
Other |
229 |
637 | |||
|
Decrease (increase) in assets: |
|||||
|
Accounts receivable, net |
(5,256) |
(40,889) | |||
|
Inventories |
(39,108) |
(274) | |||
|
Leased railcars for syndication |
34,295 |
(61,059) | |||
|
Other |
8,893 |
(3,578) | |||
|
Decrease in liabilities: |
|||||
|
Accounts payable and accrued liabilities |
(25,693) |
(77,605) | |||
|
Deferred revenue |
(11,111) |
(723) | |||
|
Net cash provided by (used in) operating activities |
29,006 |
(63,491) | |||
|
Cash flows from investing activities: |
|||||
|
Proceeds from sales of assets |
9,189 |
41,353 | |||
|
Capital expenditures |
(12,584) |
(15,595) | |||
|
Decrease (increase) in restricted cash |
15,637 |
(949) | |||
|
Cash distribution from unconsolidated affiliates |
550 |
616 | |||
|
Investment in and advances to unconsolidated affiliates |
(550) |
(1,866) | |||
|
Net cash provided by investing activities |
12,242 |
23,559 | |||
|
Cash flows from financing activities: |
|||||
|
Net changes in revolving notes with maturities of 90 days or less |
- |
113,000 | |||
|
Repayments of notes payable |
(1,750) |
(1,761) | |||
|
Debt issuance costs |
- |
(4,493) | |||
|
Cash distribution to joint venture partner |
(11,185) |
(17,654) | |||
|
Repurchase of stock |
- |
(20,203) | |||
|
Dividends |
(6,147) |
(105) | |||
|
Excess tax benefit (deficiency) from restricted stock awards |
(2,464) |
2,827 | |||
|
Other |
- |
(6) | |||
|
Net cash provided by (used in) financing activities |
(21,546) |
71,605 | |||
|
Effect of exchange rate changes |
(8,591) |
(6,970) | |||
|
Increase in cash and cash equivalents |
11,111 |
24,703 | |||
|
Cash and cash equivalents |
|||||
|
Beginning of period |
222,679 |
172,930 | |||
|
End of period |
$ |
233,790 |
$ 197,633 | ||
|
THE GREENBRIER COMPANIES, INC. | |||||||||
|
SUPPLEMENTAL INFORMATION | |||||||||
|
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 | |||||||||||
|
Segment Information | |||||||||||
|
Three months ended November 30, 2016: |
|||||||||||
|
Revenue |
Earnings (loss) from operations | ||||||||||
|
(In thousands) |
External |
Intersegment |
Total |
External |
Intersegment |
Total | |||||
|
Manufacturing |
$ 454,033 |
$ - |
$ 454,033 |
$ 83,341 |
$ - |
$ 83,341 | |||||
|
Wheels & Parts |
69,635 |
7,201 |
76,836 |
2,894 |
612 |
3,506 | |||||
|
Leasing & Services |
28,646 |
5,334 |
33,980 |
7,390 |
5,250 |
12,640 | |||||
|
Eliminations |
- |
(12,535) |
(12,535) |
- |
(5,862) |
(5,862) | |||||
|
Corporate |
- |
- |
- |
(20,965) |
- |
(20,965) | |||||
|
$ 552,314 |
$ - |
$ 552,314 |
$ 72,660 |
$ - |
$ 72,660 | ||||||
|
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 | ||||||
|
Total assets | |||
|
November 30, |
August 31, | ||
|
(In thousands) |
2016 |
2016 | |
|
Manufacturing |
$ 729,361 |
$ 701,296 | |
|
Wheels & Parts |
279,971 |
275,599 | |
|
Leasing & Services |
471,957 |
516,147 | |
|
Unallocated |
336,061 |
342,732 | |
|
$ 1,817,350 |
$ 1,835,774 | ||
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 | ||||
|
November 30, |
August 31, | |||
|
2016 |
2016 | |||
|
Revenue |
$ 70,300 |
$ 84,100 | ||
|
Loss from operations |
$ (4,600) |
$ (500) | ||
|
Total assets |
$ 238,300 |
$ 247,600 | ||
|
THE GREENBRIER COMPANIES, INC. | ||||||
|
SUPPLEMENTAL INFORMATION | ||||||
|
Reconciliation of Net earnings to Adjusted EBITDA | ||||||
|
Three Months Ended | ||||||
|
November 30, 2016 |
August 31, 2016 | |||||
|
Net earnings |
$ 47,966 |
$ 60,363 | ||||
|
Interest and foreign exchange |
1,724 |
2,937 | ||||
|
Income tax expense |
20,386 |
19,420 | ||||
|
Depreciation and amortization |
15,595 |
21,664 | ||||
|
Adjusted EBITDA |
$ 85,671 |
$ 104,384 | ||||
|
Three Months | |||
|
Backlog Activity (units) |
|||
|
Beginning backlog |
27,500 | ||
|
Orders received |
2,400 | ||
|
Production held as Leased railcars for syndication |
(600) | ||
|
Production sold directly to third parties |
(3,500) | ||
|
Ending backlog |
25,800 | ||
|
Delivery Information (units) |
|||
|
Production sold directly to third parties |
3,500 | ||
|
Sales of Leased railcars for syndication |
500 | ||
|
Total deliveries |
4,000 | ||
|
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 | ||
|
November 30, |
August 31, | |
|
Weighted average basic common shares outstanding (1) |
29,097 |
29,079 |
|
Dilutive effect of convertible notes (2) |
3,258 |
3,250 |
|
Dilutive effect of performance awards (3) |
57 |
118 |
|
Weighted average diluted common shares outstanding |
32,412 |
32,447 |
|
(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 was included 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, 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 of using the treasury stock method, associated with shares underlying the 2026 Convertible notes and performance based restricted stock units 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 | ||
|
November 30, |
August 31, | |
|
Net earnings attributable to Greenbrier |
$ 24,962 |
$ 33,560 |
|
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 |
$ 25,695 |
$ 34,293 |
|
Weighted average diluted common shares outstanding |
32,412 |
32,447 |
|
Diluted earnings per share |
$ 0.79 |
$ 1.06 |
SOURCE The Greenbrier Companies, Inc. (GBX)