LAKE OSWEGO, Ore., Oct. 27, 2017 /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE: GBX) today reported financial results for its fourth fiscal quarter and year ended August 31, 2017.
Fourth Quarter Highlights
- Revenue for the quarter of $611.4 million increased 39% from quarter ended May 31, 2017 reflecting higher deliveries.
- Net earnings attributable to Greenbrier for the quarter were $23.7 million, or $0.75 per diluted share, and include a $3.5 million ($0.11 per share) impact associated with a goodwill impairment charge recorded by GBW.
- Adjusted net earnings attributable to Greenbrier for the quarter were $27.3 million, or $0.86 per diluted share.
- Adjusted EBITDA for the quarter was $73.3 million, or 12.0% of revenue.
- New railcar deliveries totaled 5,500 units for the quarter.
- Diversified orders of 2,500 railcars were received during the quarter, valued at $200 million. In September, orders for another 1,400 units were received, valued at $120 million.
- New railcar backlog as of August 31, 2017 was 28,600 units with an estimated value of $2.80 billion.
- Board increases the quarterly dividend to $0.23 per share, payable on December 6, 2017 to shareholders of record as of November 15, 2017.
- Board extends share repurchase authorization to March 2019.
Fiscal Year 2017 Highlights
- Net earnings attributable to Greenbrier for the year were $116.1 million, or $3.65 per diluted share, and include a $3.5 million ($0.11 per share) impact associated with a goodwill impairment charge recorded by GBW.
- Adjusted net earnings attributable to Greenbrier for the year were $119.6 million, or $3.76 per diluted share, on revenue of $2.17 billion.
- Adjusted EBITDA for the year was $317.3 million, or 14.6% of revenue.
- New railcar deliveries totaled 16,000 units for the year.
- Orders for the year exceeded 16,500 units valued at over $1.5 billion across a broad range of railcar types.
- Cash provided by operating activities exceeded $280 million for the year.
William A. Furman, Chairman and CEO, said, "Greenbrier delivered strong results for the fourth quarter and fiscal 2017. This positive financial performance was achieved by successfully executing on Greenbrier's strategy to foster and grow its North American business, while simultaneously expanding to global markets. Greenbrier's earnings exceeded our guidance range for fiscal 2017. Aggregate gross margin for the year remained healthy at 19.4%. Operationally, in a competitive North American freight railcar market, Greenbrier added market share during fiscal 2017, receiving orders exceeding 16,500 railcars valued at $1.5 billion – about double the number and value of railcar orders received in fiscal 2016. Management services added approximately 70,000 railcars to its managed fleet in the year and an additional 15,000 railcars post quarter end. Greenbrier now provides management services for over 20% of the North American fleet."
Furman continued, "Financially, we ended the year with a strong balance sheet and liquidity. The Board of Directors increased the quarterly dividend by 4.5% to $0.23 per share or an annualized rate of $0.92. We extended share repurchase authorization through March 2019, and improved the capital efficiency of Greenbrier through a newly formed lease warehouse facility. Greenbrier's approach to capital deployment will continue to balance investing in internal projects, funding strategic growth, and returning capital to shareholders."
Furman concluded, "The past year was transformative for Greenbrier, as we diversified our business with increased investments in Europe, Brazil and in the Gulf Cooperation Council region. Greenbrier will advance its international agenda further in fiscal 2018. Greenbrier's backlog of over 28,600 units valued at $2.8 billion is higher now than at the beginning of fiscal 2017, providing visibility into fiscal 2018 and beyond. Backlog spans almost all railcar types and has grown both internationally and domestically. As we grow Greenbrier's core North American business and see a larger contribution from international operations, we expect more deliveries to produce greater revenue and higher EPS in fiscal 2018 compared to fiscal 2017."
Business Outlook
Based on current business trends, industry forecasts and production schedules for fiscal 2018, Greenbrier believes:
- Deliveries will be 20,000 – 22,000 units including Greenbrier-Maxion (Brazil) which will account for up to 10% of deliveries
- Revenue will be $2.4 – $2.6 billion
- Diluted EPS of up to $4.00
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 FY17 |
Q3 FY17 |
Sequential Comparison – Main Drivers | |
|
Revenue |
$611.4M |
$439.2M |
Up 39.2% primarily due to higher volume of deliveries |
|
Gross margin |
16.3% |
20.4% |
Down 410 bps primarily due to product mix changes |
|
Selling and administrative expense |
$47.1M |
$42.8M |
Up 10.0% primarily due to expanded European operations and higher legal and consulting related to strategic initiatives |
|
Net gain on disposition of equipment |
($4.9M) |
($1.6M) |
Increase primarily reflects insurance recovery proceeds from prior losses |
|
Adjusted EBITDA |
$73.3M |
$63.8M |
Higher revenue and margin |
|
Interest and foreign exchange |
$8.9M |
$7.9M |
Increase driven by higher European borrowings associated with expanded operations |
|
Effective tax rate |
20.7% |
21.3% |
Reflects a change in the geographic mix of earnings and cumulative adjustments due to slightly reduced annual rate of 27.1% |
|
Loss from unconsolidated affiliates |
($6.5M) (1) |
($0.7M) |
|
|
Net (earnings) loss attributable to noncontrolling interest |
($8.5M) |
$1.6M |
Driven by higher deliveries and timing of railcar syndications at our GIMSA JV |
|
Adjusted Net earnings attributable to Greenbrier |
$27.3M |
$32.8M |
Better than internal expectations |
|
Adjusted Diluted EPS |
$0.86 |
$1.03 |
(1) Includes $3.5 million, net of tax, or $0.11 per share, impact associated with a non-cash goodwill impairment charge recorded by GBW.
Segment Summary
|
Q4 FY17 |
Q3 FY17 |
Sequential Comparison – Main Drivers | |
|
Manufacturing | |||
|
Revenue |
$508.5M |
$317.1M |
Up 60.4% due to higher deliveries |
|
Gross margin |
16.3% |
22.7% |
Down 640 bps primarily due to a change in product mix |
|
Operating margin (1) |
13.5% |
18.3% |
|
|
Deliveries |
5,200 |
2,600 |
|
|
Wheels & Parts | |||
|
Revenue |
$75.1M |
$85.2M |
Down 11.9% primarily attributable to lower wheel and component volumes and scrap sales |
|
Gross margin |
7.0% |
8.5% |
Down 150 bps primarily due to lower volumes, change in product mix and continued challenging operating environment |
|
Operating margin (1) |
3.0% |
5.0% |
|
|
Leasing & Services | |||
|
Revenue |
$27.8M |
$36.8M |
Down 24.5% due to lower volume of externally sourced railcar syndications |
|
Gross margin |
42.1% |
28.7% |
Up due to more normalized mix of revenue |
|
Operating margin (1) (2) |
27.2% |
19.2% |
|
|
Lease fleet utilization |
92.1% |
93.6% |
|
(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 2017 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. Teleconference details are as follows:
- October 27, 2017
- 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, headquartered in Lake Oswego, Oregon, is a leading international supplier of equipment and services to global freight transportation markets. Greenbrier designs, builds and markets freight railcars and marine barges in North America. Greenbrier Europe is an end-to-end freight railcar manufacturing, engineering and repair business with operations in Poland and Romania that serves customers across Europe and in the nations of the GCC. Greenbrier builds freight railcars and rail castings in Brazil through two separate strategic partnerships. We are a leading provider of wheel services, parts, railcar management & regulatory compliance services and leasing services to railroads and related transportation industries in North America. Greenbrier offers freight railcar repair, refurbishment and retrofitting services in North America through a joint venture partnership with Watco Companies, LLC. Through other unconsolidated joint ventures, we produce industrial and rail castings, tank heads and other components. Greenbrier owns a lease fleet of over 8,300 railcars and performs management services for 355,000 railcars. Learn more about Greenbrier at www.gbrx.com.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This press release may contain forward-looking statements, including any statements that are not purely statements of historical fact. 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 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 that are not indicative of Greenbrier's financial results; uncertainty or changes in the credit markets and financial services industry; high levels of indebtedness and compliance with the terms of Greenbrier's 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, taxation 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 Greenbrier's insurance coverage; train derailments or other accidents or claims that could subject Greenbrier to legal claims; actions or inactions by various regulatory agencies including potential environmental remediation obligations or changing tank car or other railcar 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 Greenbrier's Annual Report on Form 10-K for the fiscal year ended August 31, 2016 and Greenbrier's Quarterly Report on Form 10-Q for the fiscal quarter ended May 31, 2017, and Greenbrier's 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, Greenbrier does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
|
THE GREENBRIER COMPANIES, INC. | |||||
|
CONSOLIDATED BALANCE SHEETS | |||||
|
(In thousands, unaudited) | |||||
|
August 31, 2017 |
May 31, 2017 |
February 28, 2017 |
November 30, 2016 |
August 31, 2016 | |
|
Assets |
|||||
|
Cash and cash equivalents |
$ 611,466 |
$ 465,413 |
$ 545,752 |
$ 233,790 |
$ 222,679 |
|
Restricted cash |
8,892 |
8,753 |
8,696 |
8,642 |
24,279 |
|
Accounts receivable, net |
279,964 |
267,830 |
295,844 |
237,037 |
232,517 |
|
Inventories |
400,127 |
414,012 |
381,439 |
402,064 |
365,805 |
|
Leased railcars for syndication |
91,272 |
149,119 |
98,398 |
102,686 |
144,932 |
|
Equipment on operating leases, net |
315,941 |
315,976 |
298,269 |
305,586 |
306,266 |
|
Property, plant and equipment, net |
428,021 |
330,471 |
325,325 |
327,170 |
329,990 |
|
Investment in unconsolidated affiliates |
108,255 |
110,058 |
90,762 |
93,330 |
98,682 |
|
Intangibles and other assets, net |
85,177 |
68,930 |
68,228 |
63,780 |
67,359 |
|
Goodwill |
68,590 |
43,265 |
43,265 |
43,265 |
43,265 |
|
$ 2,397,705 |
$ 2,173,827 |
$ 2,155,978 |
$ 1,817,350 |
$1,835,774 | |
|
Liabilities and Equity |
|||||
|
Revolving notes |
$ 4,324 |
$ - |
$ - |
$ - |
$ - |
|
Accounts payable and accrued liabilities |
415,061 |
339,001 |
372,321 |
345,776 |
369,754 |
|
Deferred income taxes |
75,791 |
80,482 |
65,589 |
54,123 |
51,619 |
|
Deferred revenue |
129,260 |
82,006 |
85,441 |
85,358 |
95,721 |
|
Notes payable, net |
558,228 |
532,638 |
532,596 |
300,331 |
301,853 |
|
Contingently redeemable noncontrolling interest |
36,148 |
- |
- |
- |
- |
|
Total equity - Greenbrier |
1,018,130 |
986,221 |
942,084 |
880,725 |
874,311 |
|
Noncontrolling interest |
160,763 |
153,479 |
157,947 |
151,037 |
142,516 |
|
Total equity |
1,178,893 |
1,139,700 |
1,100,031 |
1,031,762 |
1,016,827 |
|
$ 2,397,705 |
$ 2,173,827 |
$ 2,155,978 |
$ 1,817,350 |
$ 1,835,774 | |
|
THE GREENBRIER COMPANIES, INC. | ||||||
|
CONSOLIDATED STATEMENTS OF INCOME | ||||||
|
(In thousands, except per share amounts, unaudited) | ||||||
|
Years Ended August 31, | ||||||
|
2017 |
2016 |
2015 | ||||
|
Revenue |
||||||
|
Manufacturing |
$ 1,725,188 |
$ 2,096,331 |
$ 2,136,051 | |||
|
Wheels & Parts |
312,679 |
322,395 |
371,237 | |||
|
Leasing & Services |
131,297 |
260,798 |
97,990 | |||
|
2,169,164 |
2,679,524 |
2,605,278 | ||||
|
Cost of revenue |
||||||
|
Manufacturing |
1,373,967 |
1,630,554 |
1,691,414 | |||
|
Wheels & Parts |
288,336 |
293,751 |
334,680 | |||
|
Leasing & Services |
85,562 |
203,782 |
41,831 | |||
|
1,747,865 |
2,128,087 |
2,067,925 | ||||
|
Margin |
421,299 |
551,437 |
537,353 | |||
|
Selling and administrative |
170,607 |
158,681 |
151,791 | |||
|
Net gain on disposition of equipment |
(9,740) |
(15,796) |
(1,330) | |||
|
Earnings from operations |
260,432 |
408,552 |
386,892 | |||
|
Other costs |
||||||
|
Interest and foreign exchange |
24,192 |
13,502 |
11,179 | |||
|
Earnings before income tax and earnings (loss) from unconsolidated affiliates |
236,240 |
395,050 |
375,713 | |||
|
Income tax expense |
(64,014) |
(112,322) |
(112,160) | |||
|
Earnings before earnings (loss) from unconsolidated affiliates |
172,226 |
282,728 |
263,553 | |||
|
Earnings (loss) from unconsolidated affiliates |
(11,764) |
2,096 |
1,756 | |||
|
Net earnings |
160,462 |
284,824 |
265,309 | |||
|
Net earnings attributable to noncontrolling interest |
(44,395) |
(101,611) |
(72,477) | |||
|
Net earnings attributable to Greenbrier |
$ 116,067 |
$ 183,213 |
$ 192,832 | |||
|
Basic earnings per common share |
$ 3.97 |
$ 6.28 |
$ 6.85 | |||
|
Diluted earnings per common share |
$ 3.65 |
$ 5.73 |
$ 5.93 | |||
|
Weighted average common shares |
||||||
|
Basic |
29,225 |
29,156 |
28,151 | |||
|
Diluted |
32,562 |
32,468 |
33,328 | |||
|
Dividends declared per common share |
$ 0.86 |
$ 0.81 |
$ 0.60 | |||
|
THE GREENBRIER COMPANIES, INC. | |||||||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||
|
(In thousands, unaudited) | |||||||||||||
|
Years Ended August 31, | |||||||||||||
|
2017 |
2016 |
2015 | |||||||||||
|
Cash flows from operating activities: |
|||||||||||||
|
Net earnings |
$ 160,462 |
$ 284,824 |
$ 265,309 | ||||||||||
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|||||||||||||
|
Deferred income taxes |
4,377 |
(8,935) |
(20,151) | ||||||||||
|
Depreciation and amortization |
65,129 |
63,345 |
45,156 | ||||||||||
|
Net gain on disposition of equipment |
(9,740) |
(15,796) |
(1,330) | ||||||||||
|
Stock based compensation expense |
26,427 |
24,037 |
19,459 | ||||||||||
|
Accretion of debt discount |
2,340 |
- |
- | ||||||||||
|
Noncontrolling interest adjustments |
(677) |
526 |
17,215 | ||||||||||
|
Other |
(845) |
560 |
1,184 | ||||||||||
|
Decrease (increase) in assets: |
|||||||||||||
|
Accounts receivable, net |
(25,272) |
(32,051) |
13,652 | ||||||||||
|
Inventories |
(2,787) |
53,711 |
(143,849) | ||||||||||
|
Leased railcars for syndication |
41,015 |
19,154 |
(90,614) | ||||||||||
|
Other |
17,558 |
(16,989) |
575 | ||||||||||
|
Increase (decrease) in liabilities: |
|||||||||||||
|
Accounts payable and accrued liabilities |
(30,637) |
(91,428) |
72,419 | ||||||||||
|
Deferred revenue |
33,039 |
50,712 |
13,308 | ||||||||||
|
Net cash provided by operating activities |
280,389 |
331,670 |
192,333 | ||||||||||
|
Cash flows from investing activities: |
|||||||||||||
|
Acquisitions, net of cash acquired |
(27,127) |
- |
- | ||||||||||
|
Proceeds from sales of assets |
24,149 |
103,715 |
5,295 | ||||||||||
|
Capital expenditures |
(86,065) |
(139,013) |
(105,989) | ||||||||||
|
Decrease (increase) in restricted cash |
15,387 |
(15,410) |
271 | ||||||||||
|
Investment in and advances to unconsolidated affiliates |
(40,632) |
(12,855) |
(34,453) | ||||||||||
|
Cash distribution from joint ventures |
550 |
7,855 |
3,345 | ||||||||||
|
Net cash used in investing activities |
(113,738) |
(55,708) |
(131,531) | ||||||||||
|
Cash flows from financing activities: |
|||||||||||||
|
Net changes in revolving notes with maturities of 90 days or less |
4,324 |
(49,000) |
49,000 | ||||||||||
|
Proceeds from revolving notes with maturities longer than 90 days |
- |
- |
44,451 | ||||||||||
|
Repayments of revolving notes with maturities longer than 90 days |
- |
(1,888) |
(55,644) | ||||||||||
|
Proceeds from issuance of notes payable |
276,093 |
- |
- | ||||||||||
|
Repayments of notes payable |
(8,297) |
(22,299) |
(7,475) | ||||||||||
|
Debt issuance costs |
(9,082) |
(4,161) |
- | ||||||||||
|
Decrease in restricted cash |
- |
- |
11,000 | ||||||||||
|
Repurchase of stock |
- |
(33,498) |
(69,950) | ||||||||||
|
Dividends |
(24,890) |
(23,303) |
(16,491) | ||||||||||
|
Cash distribution to joint venture partner |
(28,511) |
(95,092) |
(20,375) | ||||||||||
|
Investment by joint venture partner |
- |
5,400 |
- | ||||||||||
|
Excess tax benefit from restricted stock awards |
- |
2,813 |
2,908 | ||||||||||
|
Other |
- |
(887) |
(248) | ||||||||||
|
Net cash provided by (used in) financing activities |
209,637 |
(221,915) |
(62,824) | ||||||||||
|
Effect of exchange rate changes |
12,499 |
(4,298) |
(9,964) | ||||||||||
|
Increase (decrease) in cash and cash equivalents |
388,787 |
49,749 |
(11,986) | ||||||||||
|
Cash and cash equivalents |
|||||||||||||
|
Beginning of period |
222,679 |
172,930 |
184,916 | ||||||||||
|
End of period |
$ 611,466 |
$ 222,679 |
$ 172,930 | ||||||||||
|
THE GREENBRIER COMPANIES, INC. | ||||||||||
|
SUPPLEMENTAL INFORMATION | ||||||||||
|
(In thousands, except per share amounts, unaudited) | ||||||||||
|
Operating Results by Quarter for 2017 are as follows: | ||||||||||
|
First |
Second |
Third |
Fourth |
Total | ||||||
|
Revenue |
||||||||||
|
Manufacturing |
$ 454,033 |
$ 445,504 |
$ 317,104 |
$ 508,547 |
$ 1,725,188 | |||||
|
Wheels & Parts |
69,635 |
82,714 |
85,231 |
75,099 |
312,679 | |||||
|
Leasing & Services |
28,646 |
38,064 |
36,826 |
27,761 |
131,297 | |||||
|
552,314 |
566,282 |
439,161 |
611,407 |
2,169,164 | ||||||
|
Cost of revenue |
||||||||||
|
Manufacturing |
356,555 |
346,653 |
245,228 |
425,531 |
1,373,967 | |||||
|
Wheels & Parts |
64,978 |
75,497 |
77,985 |
69,876 |
288,336 | |||||
|
Leasing & Services |
18,030 |
25,207 |
26,247 |
16,078 |
85,562 | |||||
|
439,563 |
447,357 |
349,460 |
511,485 |
1,747,865 | ||||||
|
Margin |
112,751 |
118,925 |
89,701 |
99,922 |
421,299 | |||||
|
Selling and administrative expense |
41,213 |
39,495 |
42,810 |
47,089 |
170,607 | |||||
|
Net gain on disposition of equipment |
(1,122) |
(2,090) |
(1,581) |
(4,947) |
(9,740) | |||||
|
Earnings from operations |
72,660 |
81,520 |
48,472 |
57,780 |
260,432 | |||||
|
Other costs |
||||||||||
|
Interest and foreign exchange |
1,724 |
5,673 |
7,894 |
8,901 |
24,192 | |||||
|
Earnings before income tax and loss from |
70,936 |
75,847 |
40,578 |
48,879 |
236,240 | |||||
|
Income tax expense |
(20,386) |
(24,858) |
(8,656) |
(10,114) |
(64,014) | |||||
|
Earnings before loss from unconsolidated affiliates |
50,550 |
50,989 |
31,922 |
38,765 |
172,226 | |||||
|
Loss from unconsolidated affiliates |
(2,584) |
(1,988) |
(681) |
(6,511) |
(11,764) | |||||
|
Net earnings |
47,966 |
49,001 |
31,241 |
32,254 |
160,462 | |||||
|
Net earnings attributable to noncontrolling interest |
(23,004) |
(14,465) |
1,582 |
(8,508) |
(44,395) | |||||
|
Net earnings attributable to Greenbrier |
$ 24,962 |
$ 34,536 |
$ 32,823 |
$ 23,746 |
$ 116,067 | |||||
|
Basic earnings per common share (1) |
$ 0.86 |
$ 1.19 |
$ 1.12 |
$ 0.81 |
$ 3.97 | |||||
|
Diluted earnings per common share (1) |
$ 0.79 |
$ 1.09 |
$ 1.03 |
$ 0.75 |
$ 3.65 | |||||
|
(1) |
Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share excludes the dilutive effect of the 2024 Convertible Notes, since the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive, but includes 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 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 do not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes, using the treasury stock method 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, 2017: |
||||||||||||
|
Revenue |
Earnings (loss) from operations |
|||||||||||
|
External |
Intersegment |
Total |
External |
Intersegment |
Total |
|||||||
|
Manufacturing |
$ 508,547 |
$ - |
$ 508,547 |
$ 68,723 |
$ - |
$ 68,723 |
||||||
|
Wheels & Parts |
75,099 |
7,468 |
82,567 |
2,282 |
341 |
2,623 |
||||||
|
Leasing & Services |
27,761 |
3,772 |
31,533 |
7,541 |
3,497 |
11,038 |
||||||
|
Eliminations |
- |
(11,240) |
(11,240) |
- |
(3,838) |
(3,838) |
||||||
|
Corporate |
- |
- |
- |
(20,766) |
- |
(20,766) |
||||||
|
$ 611,407 |
$ - |
$ 611,407 |
$ 57,780 |
$ - |
$ 57,780 |
|||||||
|
Three months ended May 31, 2017: |
||||||||||||
|
Revenue |
Earnings (loss) from operations |
|||||||||||
|
External |
Intersegment |
Total |
External |
Intersegment |
Total |
|||||||
|
Manufacturing |
$ 317,104 |
$ 19,291 |
$ 336,395 |
$ 57,901 |
$ 1,022 |
$ 58,923 |
||||||
|
Wheels & Parts |
85,231 |
8,959 |
94,190 |
4,239 |
839 |
5,078 |
||||||
|
Leasing & Services |
36,826 |
595 |
37,421 |
7,084 |
427 |
7,511 |
||||||
|
Eliminations |
- |
(28,845) |
(28,845) |
- |
(2,288) |
(2,288) |
||||||
|
Corporate |
- |
- |
- |
(20,752) |
- |
(20,752) |
||||||
|
$ 439,161 |
$ - |
$ 439,161 |
$ 48,472 |
$ - |
$ 48,472 |
|||||||
|
Total assets |
||||
|
August 31, |
May 31, |
|||
|
2017 |
2017 |
|||
|
Manufacturing |
$ 914,450 |
$ 705,229 |
||
|
Wheels & Parts |
236,315 |
264,308 |
||
|
Leasing & Services |
535,323 |
625,569 |
||
|
Unallocated |
711,617 |
578,721 |
||
|
$ 2,397,705 |
$ 2,173,827 |
|||
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 |
$ 56,300 |
$ 62,700 |
||
|
Loss from operations |
$ (15,400) |
$ (5,500) |
||
|
Total assets |
$ 206,000 |
$ 218,800 |
||
During the fourth quarter of 2017, GBW performed an interim goodwill test as sales and profitability trends declined beyond what was anticipated. As a result, GBW recorded a pre-tax impairment loss of $11.2 million. GBW is accounted for under the equity method of accounting, therefore our share of the non-cash impairment loss recognized by GBW was $3.5 million after-tax ($0.11 per share) and is included as part of Earnings (loss) from unconsolidated affiliates on our Consolidated Statement of Income.
|
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, |
May 31, |
August 31, | ||||||
|
Net earnings |
$ 32,254 |
$ 31,241 |
$ 160,462 | |||||
|
Interest and foreign exchange |
8,901 |
7,894 |
24,192 | |||||
|
Income tax expense |
10,114 |
8,656 |
64,014 | |||||
|
Depreciation and amortization |
18,513 |
16,036 |
65,129 | |||||
|
GBW goodwill impairment |
3,522 |
- |
3,522 | |||||
|
Adjusted EBITDA |
$ 73,304 |
$ 63,827 |
$ 317,319 | |||||
|
Three Months August 31, 2017 |
Year Ended August 31, | ||||
|
Backlog Activity (units) |
|||||
|
Beginning backlog |
31,000 |
27,500 | |||
|
Orders received (1) |
2,500 |
16,600 | |||
|
Astra & Brazil Transfer |
100 |
1,100 | |||
|
Production held as Leased railcars for syndication |
(1,100) |
(3,450) | |||
|
Production sold directly to third parties (1) |
(3,900) |
(13,150) | |||
|
Ending backlog |
28,600 |
28,600 | |||
|
Delivery Information (units) |
|||||
|
Production sold directly to third parties (1) |
3,900 |
13,150 | |||
|
Sales of Leased railcars for syndication |
1,600 |
2,850 | |||
|
Total deliveries |
5,500 |
16,000 | |||
|
(1) |
Includes Greenbrier-Maxion, our Brazilian railcar manufacturer, which is accounted for under the equity method |
|
THE GREENBRIER COMPANIES, INC. | ||||
|
SUPPLEMENTAL INFORMATION | ||||
|
(In thousands, except per share amounts, unaudited) | ||||
|
Reconciliation of common shares outstanding, adjusted net earnings attributable to Greenbrier and adjusted 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 |
Year Ended | |||
|
August 31, 2017 |
May 31, 2017 |
August 31, 2017 | ||
|
Weighted average basic common shares outstanding (1) |
29,323 |
29,348 |
29,225 | |
|
Dilutive effect of convertible notes (2) |
3,321 |
3,305 |
3,295 | |
|
Dilutive effect of performance awards (3) |
58 |
37 |
42 | |
|
Weighted average diluted common shares outstanding |
32,702 |
32,690 |
32,562 | |
|
(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 2024 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 |
Year Ended | ||||||
|
August 31, 2017 |
May 31, 2017 |
August 31, | |||||
|
Net earnings attributable to Greenbrier |
$ 23,746 |
$ 32,823 |
$ 116,067 | ||||
|
GBW goodwill impairment |
3,522 |
- |
3,522 | ||||
|
Adjusted net earnings attributable to Greenbrier |
$ 27,268 |
$ 32,823 |
$ 119,589 | ||||
|
Three Months Ended |
Year Ended |
|||||
|
August 31, 2017 |
May 31, 2017 |
August 31, |
||||
|
Net earnings attributable to Greenbrier |
$ 23,746 |
$ 32,823 |
$ 116,067 |
|||
|
Add back: |
||||||
|
Interest and debt issuance costs on the 2018 Convertible notes, net of tax |
733 |
733 |
2,932 |
|||
|
Earnings before interest and debt issuance costs on convertible notes |
$ 24,479 |
$ 33,556 |
$ 118,999 |
|||
|
Weighted average diluted common shares outstanding |
32,702 |
32,690 |
32,562 |
|||
|
Diluted earnings per share |
$ 0.75 |
$ 1.03 |
$ 3.65 |
|||
|
GBW goodwill impairment |
0.11 |
(1) |
- |
0.11 |
(1) | |
|
Adjusted diluted earnings per share |
$ 0.86 |
$ 1.03 |
$ 3.76 |
|||
|
(1) |
GBW goodwill impairment of $3.5 million, net of tax, divided by weighted average diluted common shares outstanding of 32,702 and 32,562, respectively, for the three and twelve months ended August 31, 2017. |
SOURCE The Greenbrier Companies, Inc. (GBX)