LAKE OSWEGO, Ore., Jan. 5, 2018 /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE: GBX) today reported financial results for its first fiscal quarter ended November 30, 2017.
First Quarter Highlights
- Net earnings attributable to Greenbrier for the quarter were $26.3 million, or $0.83 per diluted share, on revenue of $559.5 million.
- Quarterly results included $3.4 million ($2.3 million after-tax or $0.07 per diluted share) of expense related to resolution of litigation in a foreign jurisdiction. Additionally, the tax rate for the quarter was 33.3% attributable to discrete items and the geographic mix of earnings. Compared to the previous annual tax rate guidance of 29%, the impact of the higher quarterly rate is $0.07 per diluted share.
- Adjusted EBITDA for the quarter was $76.9 million, or 13.7% of revenue.
- Orders for 3,200 diversified railcars were received during this quarter, valued at over $290 million.
- New railcar backlog as of November 30, 2017 was 26,500 units with an estimated value of $2.56 billion.
- New railcar deliveries totaled 4,400 units for the quarter.
- Board declares a quarterly dividend of $0.23 per share, payable on February 16, 2018 to shareholders as of January 26, 2018.
William A. Furman, Chairman and CEO, said, "Greenbrier advanced several key initiatives during the quarter and is on track to achieve our goals for the year. While the new railcar market in North America is challenging, broad-based demand for Greenbrier's products and services remains steady and we expect will trend higher as we advance through fiscal 2018. During the recent quarter, Greenbrier received 3,200 orders for a broad range of railcar types including covered hoppers, tanks, automotive carrying units and our first orders for open top hoppers for use in aggregate service. Greenbrier's disciplined balance sheet management has resulted in a strong cash position and very low net debt, enabling us to invest strategically and return capital to shareholders. Good backlog visibility combined with a strong balance sheet provides the flexibility we need to build railcars when and where customers need them, across four continents."
Furman concluded, "Based on first quarter results, we are confident in our guidance for the year. As fiscal 2018 progresses, we will continue integration of our new manufacturing investments and will continue to expand internationally. Greenbrier is well positioned to achieve its ambitious business objectives for fiscal 2018 as growth in North American and international markets drives increased revenues, deliveries and EPS compared to fiscal 2017."
Business Outlook
Based on current business trends, industry forecasts and production schedules for fiscal 2018, and excluding the expected benefits of the recent tax reform act, Greenbrier believes:
- Deliveries will be approximately 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 will be $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
|
Q1 FY18 |
Q4 FY17 |
Sequential Comparison – Main Drivers | |
|
Revenue |
$559.5M |
$611.4M |
Down 8.5% primarily due to lower volume of deliveries due to timing of syndications |
|
Gross margin |
16.0% |
16.3% |
Down 30 bps due to product mix shifts |
|
Selling and administrative expense |
$47.0M |
$47.1M |
Down modestly due to lower employee related costs; includes foreign legal settlement expense |
|
Gain on disposition of equipment |
($19.2M) |
($4.9M) |
Increase reflects rebalancing of lease portfolio |
|
Adjusted EBITDA |
$76.9M |
$73.3M |
Higher operating margin |
|
Effective tax rate |
33.3% |
20.7% |
Reflects foreign discrete items and a change in the geographic mix of earnings |
|
Loss from unconsolidated affiliates |
($2.9M) |
($6.5M) (1) |
Continued operating challenges at GBW |
|
Net earnings attributable to noncontrolling interest |
($7.1M) |
($8.5M) |
Driven primarily by lower deliveries and timing of railcar syndications at our GIMSA JV |
|
Adjusted net earnings attributable to Greenbrier |
$26.3M |
$27.3M |
|
|
Adjusted diluted EPS |
$0.83 |
$0.86 |
(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
|
Q1 FY18 |
Q4 FY17 |
Sequential Comparison – Main Drivers | |
|
Manufacturing | |||
|
Revenue |
$451.5M |
$508.5M |
Down 11.2% due to lower volume of deliveries |
|
Gross margin |
15.6% |
16.3% |
Down 70 bps primarily due to product mix shifts |
|
Operating margin (1) |
11.7% |
13.5% |
|
|
Deliveries (2) |
4,000 |
5,200 |
|
|
Wheels & Parts | |||
|
Revenue |
$78.0M |
$75.1M |
Up 3.9% primarily attributable to higher wheel and component volume |
|
Gross margin |
7.1% |
7.0% |
Up 10 bps due to higher volume |
|
Operating margin (1) |
3.1% |
3.0% |
|
|
Leasing & Services | |||
|
Revenue |
$30.0M |
$27.8M |
Up 7.9% due to higher volume of externally sourced railcar syndications |
|
Gross margin |
43.9% |
42.1% |
Up 180 bps primarily due to higher interim rent |
|
Operating margin (1) (3) |
93.8% |
27.2% |
Driven by higher level of gains on disposition of equipment due to rebalancing of lease fleet |
|
Lease fleet utilization |
91.8% |
92.1% |
|
(1) See supplemental segment information on page 9 for additional information.
(2) Excludes Brazil deliveries which are not consolidated into manufacturing revenue and margins.
(3) 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 2018 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website.
Teleconference details are as follows:
- January 5, 2018
- 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, 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 8,000 railcars and performs management services for 353,000 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, 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.
|
THE GREENBRIER COMPANIES, INC. | |||||
|
CONSOLIDATED BALANCE SHEETS | |||||
|
November 30, 2017 |
August 31, 2017 |
May 31, 2017 |
February 28, 2017 |
November 30, 2016 | |
|
Assets |
|||||
|
Cash and cash equivalents |
$ 591,406 |
$ 611,466 |
$ 465,413 |
$ 545,752 |
$ 233,790 |
|
Restricted cash |
8,839 |
8,892 |
8,753 |
8,696 |
8,642 |
|
Accounts receivable, net |
315,393 |
279,964 |
267,830 |
295,844 |
237,037 |
|
Inventories |
411,371 |
400,127 |
414,012 |
381,439 |
402,064 |
|
Leased railcars for syndication |
130,991 |
91,272 |
149,119 |
98,398 |
102,686 |
|
Equipment on operating leases, net |
274,598 |
315,941 |
315,976 |
298,269 |
305,586 |
|
Property, plant and equipment, net |
426,961 |
428,021 |
330,471 |
325,325 |
327,170 |
|
Investment in unconsolidated affiliates |
101,529 |
108,255 |
110,058 |
90,762 |
93,330 |
|
Intangibles and other assets, net |
83,819 |
85,177 |
68,930 |
68,228 |
63,780 |
|
Goodwill |
67,783 |
68,590 |
43,265 |
43,265 |
43,265 |
|
$ 2,412,690 |
$ 2,397,705 |
$ 2,173,827 |
$ 2,155,978 |
$ 1,817,350 | |
|
Liabilities and Equity |
|||||
|
Revolving notes |
$ 6,885 |
$ 4,324 |
$ - |
$ - |
$ - |
|
Accounts payable and accrued liabilities |
441,373 |
415,061 |
339,001 |
372,321 |
345,776 |
|
Deferred income taxes |
69,984 |
75,791 |
80,482 |
65,589 |
54,123 |
|
Deferred revenue |
120,044 |
129,260 |
82,006 |
85,441 |
85,358 |
|
Notes payable, net |
558,987 |
558,228 |
532,638 |
532,596 |
300,331 |
|
Contingently redeemable noncontrolling interest |
35,209 |
36,148 |
- |
- |
- |
|
Total equity - Greenbrier |
1,032,557 |
1,018,130 |
986,221 |
942,084 |
880,725 |
|
Noncontrolling interest |
147,651 |
160,763 |
153,479 |
157,947 |
151,037 |
|
Total equity |
1,180,208 |
1,178,893 |
1,139,700 |
1,100,031 |
1,031,762 |
|
$ 2,412,690 |
$ 2,397,705 |
$ 2,173,827 |
$ 2,155,978 |
$ 1,817,350 | |
|
THE GREENBRIER COMPANIES, INC. | ||||||
|
CONSOLIDATED STATEMENTS OF INCOME | ||||||
|
Three Months Ended November 30, |
||||||
|
2017 |
2016 |
|||||
|
Revenue |
||||||
|
Manufacturing |
$ |
451,485 |
$ 454,033 |
|||
|
Wheels & Parts |
78,011 |
69,635 |
||||
|
Leasing & Services |
30,039 |
28,646 |
||||
|
559,535 |
552,314 |
|||||
|
Cost of revenue |
||||||
|
Manufacturing |
380,850 |
356,555 |
||||
|
Wheels & Parts |
72,506 |
64,978 |
||||
|
Leasing & Services |
16,865 |
18,030 |
||||
|
470,221 |
439,563 |
|||||
|
Margin |
89,314 |
112,751 |
||||
|
Selling and administrative |
47,043 |
41,213 |
||||
|
Net gain on disposition of equipment |
(19,171) |
(1,122) |
||||
|
Earnings from operations |
61,442 |
72,660 |
||||
|
Other costs |
||||||
|
Interest and foreign exchange |
7,020 |
1,724 |
||||
|
Earnings before income tax and loss from unconsolidated affiliates |
54,422 |
70,936 |
||||
|
Income tax expense |
(18,135) |
(20,386) |
||||
|
Earnings before loss from unconsolidated affiliates |
36,287 |
50,550 |
||||
|
Loss from unconsolidated affiliates |
(2,910) |
(2,584) |
||||
|
Net earnings |
33,377 |
47,966 |
||||
|
Net earnings attributable to noncontrolling interest |
(7,124) |
(23,004) |
||||
|
Net earnings attributable to Greenbrier |
$ |
26,253 |
$ 24,962 |
|||
|
Basic earnings per common share: |
$ |
0.90 |
$ 0.86 |
|||
|
Diluted earnings per common share: |
$ |
0.83 |
$ 0.79 |
|||
|
Weighted average common shares: |
||||||
|
Basic |
29,332 |
29,097 |
||||
|
Diluted |
32,696 |
32,412 |
||||
|
Dividends declared per common share |
$ |
0.23 |
$ 0.21 |
|||
|
THE GREENBRIER COMPANIES, INC. | ||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
|
Three Months Ended |
||||||
|
2017 |
2016 |
|||||
|
Cash flows from operating activities: |
||||||
|
Net earnings |
$ |
33,377 |
$ 47,966 |
|||
|
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: |
||||||
|
Deferred income taxes |
(5,865) |
2,756 |
||||
|
Depreciation and amortization |
18,370 |
15,595 |
||||
|
Net gain on disposition of equipment |
(19,171) |
(1,122) |
||||
|
Accretion of debt discount |
1,024 |
- |
||||
|
Stock based compensation expense |
5,939 |
5,343 |
||||
|
Noncontrolling interest adjustments |
(875) |
(3,781) |
||||
|
Other |
477 |
229 |
||||
|
Decrease (increase) in assets: |
||||||
|
Accounts receivable, net |
(35,510) |
(5,256) |
||||
|
Inventories |
(16,311) |
(39,108) |
||||
|
Leased railcars for syndication |
(35,541) |
34,295 |
||||
|
Other |
6,304 |
8,893 |
||||
|
Increase (decrease) in liabilities: |
||||||
|
Accounts payable and accrued liabilities |
16,676 |
(22,873) |
||||
|
Deferred revenue |
(8,548) |
(11,111) |
||||
|
Net cash provided by (used in) operating activities |
(39,654) |
31,826 |
||||
|
Cash flows from investing activities: |
||||||
|
Proceeds from sales of assets |
75,060 |
9,189 |
||||
|
Capital expenditures |
(29,893) |
(12,584) |
||||
|
Decrease in restricted cash |
53 |
15,637 |
||||
|
Cash distribution from unconsolidated affiliates |
- |
550 |
||||
|
Investment in and advances to unconsolidated affiliates |
- |
(550) |
||||
|
Net cash provided by investing activities |
45,220 |
12,242 |
||||
|
Cash flows from financing activities: |
||||||
|
Net changes in revolving notes with maturities of 90 days or less |
2,561 |
- |
||||
|
Proceeds from issuance of notes payable |
2,138 |
- |
||||
|
Repayments of notes payable |
(2,809) |
(1,750) |
||||
|
Investment by joint venture partner |
6,500 |
- |
||||
|
Cash distribution to joint venture partner |
(26,900) |
(11,185) |
||||
|
Dividends |
(319) |
(6,147) |
||||
|
Tax payments for net share settlement of restricted stock |
(5,061) |
(2,820) |
||||
|
Excess tax deficiency from restricted stock awards |
- |
(2,464) |
||||
|
Net cash used in financing activities |
(23,890) |
(24,366) |
||||
|
Effect of exchange rate changes |
(1,736) |
(8,591) |
||||
|
Increase (decrease) in cash and cash equivalents |
(20,060) |
11,111 |
||||
|
Cash and cash equivalents |
||||||
|
Beginning of period |
611,466 |
222,679 |
||||
|
End of period |
$ |
591,406 |
$ 233,790 |
|||
|
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 earnings (loss) from unconsolidated affiliates |
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 earnings (loss) from unconsolidated affiliates |
50,550 |
50,989 |
31,922 |
38,765 |
172,226 |
|||||
|
Earnings (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 | ||||||||||||
|
Segment Information | ||||||||||||
|
Three months ended November 30, 2017: |
||||||||||||
|
Revenue |
Earnings (loss) from operations |
|||||||||||
|
(In thousands) |
External |
Intersegment |
Total |
External |
Intersegment |
Total |
||||||
|
Manufacturing |
$ 451,485 |
$ 16,804 |
$ 468,289 |
$ 52,969 |
$ 4,186 |
$ 57,155 |
||||||
|
Wheels & Parts |
78,011 |
7,732 |
85,743 |
2,418 |
748 |
3,166 |
||||||
|
Leasing & Services |
30,039 |
1,605 |
31,644 |
28,190 |
1,372 |
29,562 |
||||||
|
Eliminations |
- |
(26,141) |
(26,141) |
- |
(6,306) |
(6,306) |
||||||
|
Corporate |
- |
- |
- |
(22,135) |
- |
(22,135) |
||||||
|
$ 559,535 |
$ - |
$ 559,535 |
$ 61,442 |
$ - |
$ 61,442 |
|||||||
|
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 |
|||||||
|
Total assets |
||||||||
|
(In thousands) |
November 30, 2017 |
August 31, 2017 |
||||||
|
Manufacturing |
$ 915,918 |
$ 914,450 |
||||||
|
Wheels & Parts |
262,349 |
236,315 |
||||||
|
Leasing & Services |
535,847 |
535,323 |
||||||
|
Unallocated |
698,576 |
711,617 |
||||||
|
$ 2,412,690 |
$ 2,397,705 |
|||||||
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, |
||||
|
Revenue |
$ 58,000 |
$ 56,300 |
|||
|
Loss from operations |
$ (5,700) |
$ (15,400) |
|||
|
Total assets |
$ 204,300 |
$ 206,000 |
|||
During the three months ended August 31, 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 | ||||||
|
Reconciliation of Net earnings to Adjusted EBITDA | ||||||
|
Three Months Ended |
||||||
|
November 30, |
August 31, 2017 |
|||||
|
Net earnings |
$ 33,377 |
$ 32,254 |
||||
|
Interest and foreign exchange |
7,020 |
8,901 |
||||
|
Income tax expense |
18,135 |
10,114 |
||||
|
Depreciation and amortization |
18,370 |
18,513 |
||||
|
GBW goodwill impairment |
- |
3,522 |
||||
|
Adjusted EBITDA |
$ 76,902 |
$ 73,304 |
||||
|
Three Months November 30, |
||||
|
Backlog Activity (units) |
||||
|
Beginning backlog |
28,600 |
|||
|
Orders received (1) |
3,200 |
|||
|
Production held as Leased railcars for syndication |
(1,400) |
|||
|
Production sold directly to third parties (1) |
(3,900) |
|||
|
Ending backlog |
26,500 |
|||
|
Delivery Information (units) |
||||
|
Production sold directly to third parties (1) |
3,900 |
|||
|
Sales of Leased railcars for syndication |
500 |
|||
|
Total deliveries |
4,400 |
|||
|
(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 | ||
|
November 30, 2017 |
August 31, | |
|
Weighted average basic common shares outstanding (1) |
29,332 |
29,323 |
|
Dilutive effect of convertible notes (2) |
3,331 |
3,321 |
|
Dilutive effect of performance awards (3) |
33 |
58 |
|
Weighted average diluted common shares outstanding |
32,696 |
32,702 |
|
(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 of 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. 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. The 2024 Convertible notes are included in the calculation of both approaches using the treasury stock method when the average stock price is greater than the applicable conversion price.
|
Three Months Ended | |||
|
November 30, |
August 31, 2017 | ||
|
Net earnings attributable to Greenbrier |
$ 26,253 |
$ 23,746 | |
|
GBW goodwill impairment |
N/A |
3,522 | |
|
Adjusted net earnings attributable to Greenbrier |
$ 26,253 |
$ 27,268 | |
|
Three Months Ended | |||
|
November 30, |
August 31, 2017 | ||
|
Net earnings attributable to Greenbrier |
$ 26,253 |
$ 23,746 | |
|
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 |
$ 26,986 |
$ 24,479 | |
|
Weighted average diluted common shares outstanding |
32,696 |
32,702 | |
|
Diluted earnings per share |
$ 0.83 |
$ 0.75 | |
|
GBW goodwill impairment(1) |
N/A |
0.11 | |
|
Adjusted diluted earnings per share |
$ 0.83 |
$ 0.86 | |
|
(1) |
GBW goodwill impairment of $3.5 million, net of tax, divided by weighted average diluted common shares outstanding of 32,702 for the three months ended August 31, 2017. |
SOURCE The Greenbrier Companies, Inc. (GBX)