Press Releases

Greenbrier Reports Fourth Quarter and 2020 Fiscal Year Results
Operating cash flow of $183 million in the quarter and $272 million in the full year
Orders for 2,800 railcars valued at approximately $250 million in the quarter
Backlog of ~$2.4 billion; resized production footprint aligns with market

 

LAKE OSWEGO, Ore., Oct. 23, 2020 /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE: GBX) ("Greenbrier"), a leading international supplier of equipment and services to global freight transportation markets, today reported financial results for its fourth fiscal quarter and year ended August 31, 2020.

Fourth Quarter Highlights

  • Liquidity of $919.6 million, including $833.7 million in cash and $85.9 million of available borrowing capacity. Combined with nearly $200 million of additional initiatives in progress, exceeded the $1 billion liquidity and cost savings target.
  • Generated operating cash flow of $183.2 million in the quarter primarily driven by decreases in working capital and from syndication activity.
  • Diversified new railcar backlog as of August 31, 2020 was 24,600 units with an estimated value of $2.4 billion, including orders for 2,800 railcars valued at approximately $250.0 million received during the quarter.  Deliveries in the quarter were 5,100 units.
  • Net loss attributable to Greenbrier for the quarter was $0.1 million, or $0.00 per diluted share, on revenue of $636.4 million. Net loss includes $1.9 million, net of tax, ($0.06 per share) of integration related expenses from the American Railcar Industries (ARI) acquisition and $3.6 million, net of tax and noncontrolling interest, ($0.10 per share) of severance expenses.
  • Adjusted net earnings attributable to Greenbrier for the quarter were $5.5 million, or $0.16 per diluted share, excluding $5.5 million, net of tax, ($0.16 per share) of integration and severance expenses.
  • Adjusted EBITDA for the quarter was $55.7 million, or 8.7% of revenue.
  • Board declares a quarterly dividend of $0.27 per share, payable on December 2, 2020 to shareholders as of November 11, 2020 representing Greenbrier's 26th consecutive dividend.

Fiscal Year 2020 Highlights

  • Net earnings attributable to Greenbrier for the year were $49.0 million, or $1.46 per diluted share, on revenue of $2.8 billion. Net earnings include $8.4 million, net of tax, ($0.26 per share) of integration related expenses from the ARI acquisition and $12.9 million, net of tax, ($0.38 per share) of severance expenses.
  • Adjusted net earnings attributable to Greenbrier were $70.2 million, or $2.10 per diluted share, excluding $21.3 million, net of tax and noncontrolling interest, ($0.64 per share) of integration and severance expenses.
  • Adjusted EBITDA for the year was $310.3 million, or 11.1% of revenue.
  • Strong cash flows from operations of $272.3 million includes $405.4 million in the second half of the fiscal year.
  • New railcar deliveries of 21,700 units for the year were the second highest in Greenbrier's history.
  • Generated new railcar orders of 16,600 units, valued at $1.6 billion, with 40% originating internationally.

William A. Furman, Chairman & CEO commented, "Greenbrier continued to perform well during this period of weaker demand.  Critically, our diverse $2.4 billion backlog remains supported by strong customer commitments and provides clear visibility for several years.  Entering fiscal 2021, we remain focused on maintaining our strong liquidity position. Greenbrier ended the quarter with more than $830 million of cash, an increase of nearly $100 million from the end of the third quarter. Net debt decreased by nearly $360 million since Greenbrier's fiscal second quarter.  Our adjusted manufacturing footprint meets today's demand levels without constraining our ability to increase capacity as markets improve, allowing Greenbrier to maintain our presence in every region we serve around the world.  Looking forward, we see early signs that demand will improve later in calendar 2021.  Greenbrier is well-positioned to benefit from improving conditions in our core markets."

Business Update & Outlook

As we enter fiscal 2021, Greenbrier continues to execute on its COVID-19 response plan, and protecting our employees within the work environment remains our top priority.  The strict protocols enacted and rapid response to clusters has allowed us to operate safely and efficiently throughout the world.  Continued vigilance is required as community spread of COVID-19 is increasing in many areas where we operate. We are continuously working to maintain a low incident rate of COVID-19 among our employees by focusing on their health and enhancing the preventative and remedial actions of our rapid response teams across the company.

We also remain focused on preserving the near-term and longer-term financial health of Greenbrier in light of the economic consequences of the pandemic and an industry downturn. Maintaining cash flow and liquidity are essential components of Greenbrier's current operating strategy, and we have been very successful in this regard. We addressed our cost structure by reducing operating expenses and capital expenditures and are appropriately positioned for today's market environment. We closed 13 rail production lines in fiscal 2020 and are continuously adjusting capacity to align with an evolving demand outlook.  We also reduced our global workforce by over 6,500 employees, or by about 40%, including both staff and production employees.  Looking forward, while we remain focused on managing our cost base, we will be nimble and adjust capacity to ensure Greenbrier's ability to fully participate in an economic recovery.  Coupled with a new railcar backlog valued at approximately $2.4 billion, we have preserved Greenbrier's ability to operate in a very challenging market environment.

Financial Summary

 

Q4 FY20

Q3 FY20

Sequential Comparison – Main Drivers

Revenue

$636.4M

$762.6M

Fewer deliveries and lower activity levels in Wheels, Repair & Parts

Gross margin

10.5%

14.1%

Less syndication activity and operating inefficiencies in Manufacturing and Wheels, Repair & Parts

Selling and administrative

$46.3M

$49.5M

Continuing cost reduction initiatives result in reduced employee-related and travel & entertainment expenses; each quarter includes $1.8 million of severance expense

Net gain on disposition of equipment

$0.6M

$8.8M

Minimal fleet disposition activity

Adjusted EBITDA

$55.7M

$99.9M

Lower operating earnings

Effective tax rate

21.3%

41.2%

Continued volatility from geographic mix of earnings and discrete items related to foreign currency fluctuations

Adjusted net earnings attributable to Greenbrier

$5.5M(1)

$35.1M(2)

Lower operating earnings reflecting fewer deliveries, operating inefficiencies and lower net gains on equipment sales partially offset by lower selling & administrative expense

Adjusted diluted EPS

$0.16(1)

$1.05(2)

 
 

(1)  Excludes expense of $5.6 million ($0.16 per share), net of tax and noncontrolling interest, associated with ARI integration related expenses and severance expenses.

(2)  Excludes expense of $7.3 million ($0.22 per share), net of tax, associated with ARI integration related expenses and severance expenses.

Segment Summary
 

 

Q4 FY20

Q3 FY20

Sequential Comparison – Main Drivers

Manufacturing

  Revenue

$549.7M

$653.0M

Lower production rates and less syndication activity results in fewer deliveries

  Gross margin

9.4%

13.8%

Operating inefficiencies from rationalizing capacity and less syndication activity

  Operating margin (1)

5.4%

10.5%

 

  Deliveries (2)

4,900

5,400

 

Wheels, Repair & Parts

  Revenue

$64.8M

$82.0M

Reduced wheel volumes and repair activity

  Gross margin

6.0%

8.6%

Operating inefficiencies due to lower business activity levels

  Operating margin (1)

1.3%

4.6%

 

Leasing & Services

  Revenue

$22.0M

$27.5M

Less interim rent on leased railcars for syndication and no externally sourced syndication sales activity

  Gross margin

53.2%

37.4%

No externally sourced syndication sales activity

  Operating margin (1) (3)

29.7%

43.0%

 

  Fleet utilization

90.4%

92.1%

 
 

(1) See supplemental segment information on page 11 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 fourth quarter 2020 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. 
Teleconference details are as follows:

  • October 23, 2020
  • 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, Romania and Turkey that serves customers across Europe and in other geographies as opportunities arise. Greenbrier builds freight railcars and rail castings in Brazil through two separate strategic partnerships. We are a leading provider of freight railcar wheel services, parts, repair, refurbishment and retrofitting services in North America through our wheels, repair & parts business unit.  Greenbrier offers railcar management, regulatory compliance services and leasing services to railroads and related transportation industries in North America. Through unconsolidated joint ventures, we produce industrial and rail castings, and other components. Greenbrier owns a lease fleet of 8,300 railcars and performs management services for 393,000 railcars. Learn more about Greenbrier at www.gbrx.com.

 
 

THE GREENBRIER COMPANIES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, unaudited)

 
 

August 31,

2020

May 31,

2020

February 29,

2020

November 30,

2019

August 31,
2019

Assets

         

   Cash and cash equivalents

$       833,745

$       735,258

$       169,899

$       253,602

$       329,684

   Restricted cash

8,342

8,704

8,569

8,648

8,803

   Accounts receivable, net 

239,597

261,629

326,229

313,786

373,383

   Inventories

529,529

675,442

709,115

733,806

664,693

   Leased railcars for syndication

107,671

136,144

255,073

135,319

182,269

   Equipment on operating leases, net

350,442

355,841

385,974

396,187

366,688

   Property, plant and equipment, net

711,524

719,155

723,326

730,730

717,973

   Investment in unconsolidated affiliates

72,354

75,508

79,082

85,141

91,818

   Intangibles and other assets, net

190,322

181,315

160,709

162,089

125,379

   Goodwill

130,308

130,035

129,684

129,468

129,947

 

$   3,173,834

$   3,279,031

$   2,974,660

$   2,948,776

$   2,990,637

           

Liabilities and Equity

         

   Revolving notes

$       351,526

$       416,535

$         37,196

$         29,502

$         27,115

   Accounts payable and accrued liabilities

463,880

488,969

499,898

527,789

568,360

   Deferred income taxes

7,701

4,354

9,173

9,417

13,946

   Deferred revenue

42,467

63,536

70,869

59,657

85,070

   Notes payable, net

804,088

806,919

811,860

817,830

822,885

           

Contingently redeemable noncontrolling interest

31,117

30,611

30,782

31,723

31,564

           

   Total equity - Greenbrier

1,293,043

1,291,221

1,286,472

1,281,808

1,276,730

   Noncontrolling interest

180,012

176,886

201,410

191,050

164,967

   Total equity

1,473,055

1,468,107

1,487,882

1,472,858

1,441,697

 

$   3,173,834

$   3,279,031

$   2,947,660

$   2,948,776

$   2,990,637

 
 
 

THE GREENBRIER COMPANIES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts, unaudited)

 
 

Years Ended August 31,

 

2020

 

2019

 

2018

Revenue

         

   Manufacturing

$      2,349,971

 

$      2,431,499

 

$     2,044,586

   Wheels, Repair & Parts

324,670

 

444,502

 

347,023

   Leasing & Services

117,548

 

157,590

 

127,855

 

2,792,189

 

3,033,591

 

2,519,464

Cost of revenue

         

   Manufacturing

2,065,169

 

2,137,625

 

1,727,407

   Wheels, Repair & Parts

302,189

 

420,890

 

318,330

   Leasing & Services

71,700

 

108,590

 

64,672

 

2,439,058

 

2,667,105

 

2,110,409

           

Margin

353,131

 

366,486

 

409,055

           

Selling and administrative

204,706

 

213,308

 

200,439

Net gain on disposition of equipment

(20,004)

 

(40,963)

 

(44,369)

Goodwill impairment

-

 

10,025

 

-

Earnings from operations

168,429

 

184,116

 

252,985

           

Other costs

         

Interest and foreign exchange

43,619

 

30,912

 

29,368

Earnings before income tax and earnings (loss) from

   unconsolidated affiliates

124,810

 

153,204

 

223,617

Income tax expense

(40,184)

 

(41,588)

 

(32,893)

Earnings before earnings (loss) from

   unconsolidated affiliates

84,626

 

111,616

 

190,724

Earnings (loss) from unconsolidated affiliates

2,960

 

(5,805)

 

(18,661)

           

Net earnings

87,586

 

105,811

 

172,063

Net earnings attributable to noncontrolling interest

(38,619)

 

(34,735)

 

(20,282)

           

Net earnings attributable to Greenbrier

$           48,967

 

$           71,076

 

$        151,781

           

Basic earnings per common share

$                 1.50

 

$                 2.18

 

$                 4.92

           

Diluted earnings per common share

$                  1.46

 

$                 2.14

 

$                 4.68

           

Weighted average common shares

         

Basic

32,670

 

32,615

 

30,857

Diluted

33,441

 

33,165

 

32,835

           

Dividends declared per common share

$                 1.06

 

$                 1.00

 

$                0.96

           

 

 
 
 

THE GREENBRIER COMPANIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, unaudited) 

 
 

Years Ended August 31,

 

2020

 

2019

 

2018

Cash flows from operating activities:

         

    Net earnings

$       87,586

 

$     105,811

 

$        172,063

    Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:

         

      Deferred income taxes

(9,489)

 

(20,225)

 

(40,496)

      Depreciation and amortization

109,850

 

83,731

 

74,356

      Net gain on disposition of equipment

(20,004)

 

(40,963)

 

(44,369)

      Stock based compensation expense

8,997

 

11,153

 

29,314

      Accretion of debt discount

5,504

 

4,458

 

4,171

      Noncontrolling interest adjustments

1,436

 

7,402

 

2,864

  Goodwill Impairment

-

 

10,025

 

-

     Other

1,142

 

145

 

1,688

      Decrease (increase) in assets:

         

          Accounts receivable, net

135,326

 

13,022

 

(83,551)

        Inventories

166,607

 

(143,168)

 

(26,592)

          Leased railcars for syndication

(12,942)

 

(96,110)

 

(54,023)

          Other assets

(64,995)

 

6,843

 

34,115

    Increase (decrease) in liabilities:

         

          Accounts payable and accrued liabilities

(108,837)

 

55,910

 

54,032

          Deferred revenue

(27,920)

 

(19,275)

 

(20,231)

    Net cash provided by (used in) operating activities

272,261

 

(21,241)

 

103,341

Cash flows from investing activities:

         

    Acquisitions, net of cash acquired

-

 

(361,878)

 

(34,874)

    Proceeds from sales of assets

83,484

 

125,427

 

153,224

    Capital expenditures

(66,879)

 

(198,233)

 

(176,848)

    Investment in and advances to unconsolidated affiliates

(1,815)

 

(11,393)

 

(26,455)

    Cash distribution from unconsolidated affiliates and other

12,693

 

2,096

 

4,661

    Net cash provided by (used in) investing activities

27,483

 

(443,981)

 

(80,292)

Cash flows from financing activities:

         

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

146,542

 

(105)

 

23,401

    Proceeds from revolving notes with maturities longer than 90 days

176,500

 

-

 

-

    Proceeds from issuance of notes payable

-

 

525,000

 

13,771

    Repayments of notes payable

(30,179)

 

(182,971)

 

(22,269)

    Debt issuance costs

-

 

(8,630)

 

-

    Dividends

(35,173)

 

(33,193)

 

(29,914)

    Cash distribution to joint venture partner

(38,969)

 

(16,879)

 

(73,033)

    Investment by joint venture partner

-

 

-

 

6,500

    Tax payments for net share settlement of restricted stock

(2,266)

 

(6,321)

 

(7,723)

Net cash provided by (used in) financing activities

216,455

 

276,901

 

(89,267)

    Effect of exchange rate changes

(12,599)

 

(12,666)

 

(14,666)

   Increase (decrease) in cash and cash equivalents and restricted cash

503,600

 

(200,987)

 

(80,884)

Cash and cash equivalents and restricted cash

         

Beginning of period

338,487

 

539,474

 

620,358

End of period

$     842,087

 

$     338,487

 

$     539,474

Balance Sheet Reconciliation:

         

    Cash and cash equivalents

$     833,745

 

$     329,684

 

$     530,655

    Restricted cash

8,342

 

8,803

 

8,819

    Total cash and cash equivalents and restricted cash as presented above

$     842,087

 

$     338,487

 

$     539,474

 

 
 
 

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,

2020

 

May 31,

2020

 

August 31,
2020

Net earnings

$                 7,691

 

$               35,869

 

$               87,586

Interest and foreign exchange

10,596

 

7,562

 

43,619

Income tax expense

2,306

 

24,421

 

40,184

Depreciation and amortization

27,398

 

23,114

 

109,850

Severance expense

5,919

 

6,341

 

21,201

ARI integration related costs

1,750

 

2,545

 

7,821

Adjusted EBITDA

$             55,660

 

$             99,852

 

$           310,261

             
           
           
     

 

Three Months
Ended

 

Year Ended

August 31,

2020

August 31,
2020

Backlog Activity (units) (1)

         

Beginning backlog

26,700

 

30,300

Orders received

2,800

 

16,600

Contract modification

--

 

(575)

Production held as Leased railcars for syndication

(700)

 

(3,200)

Production sold directly to third parties

(4,200)

 

(18,525)

Ending backlog

24,600

 

24,600

       

Delivery Information (units) (1)

     

Production sold directly to third parties

4,200

 

18,525

Sales of Leased railcars for syndication

900

 

3,175

Total deliveries

5,100

 

21,700

 

(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)

 

Operating Results by Quarter for 2020 are as follows:

 
 

First

 

Second

 

Third

 

Fourth

 

Total

                   

Revenue

                 

   Manufacturing

$    657,367

 

$    489,943

 

$        653,007

 

$         549,654

 

$ 2,349,971

   Wheels, Repair & Parts

86,608

 

91,225

 

82,024

 

64,813

 

324,670

   Leasing & Services

25,384

 

42,680

 

27,526

 

21,958

 

117,548

 

769,359

 

623,848

 

762,557

 

636,425

 

2,792,189

Cost of revenue

                 

   Manufacturing

581,912

 

422,309

 

562,793

 

498,155

 

2,065,169

   Wheels, Repair & Parts

81,892

 

84,373

 

75,001

 

60,923

 

302,189

   Leasing & Services

13,366

 

30,830

 

17,232

 

10,272

 

71,700

 

677,170

 

537,512

 

655,026

 

569,350

 

2,439,058

                   

Margin

92,189

 

86,336

 

107,531

 

67,075

 

353,131

                   

Selling and administrative expense

54,364

 

54,597

 

49,494

 

46,251

 

204,706

Net gain on disposition of equipment

(3,959)

 

(6,697)

 

(8,775)

 

(573)

 

(20,004)

Earnings from operations

41,784

 

38,436

 

66,812

 

21,397

 

168,429

                   

Other costs

                 

Interest and foreign exchange

12,852

 

12,609

 

7,562

 

10,596

 

43,619

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

28,932

 

25,827

 

59,250

 

10,801

 

124,810

Income tax expense

(5,994)

 

(7,463)

 

(24,421)

 

(2,306)

 

(40,184)

Earnings before earnings (loss) from unconsolidated affiliates

22,938

 

18,364

 

34,829

 

8,495

 

84,626

Earnings (loss) from unconsolidated affiliates

1,073

 

1,651

 

1,040

 

(804)

 

2,960

                   

Net earnings

24,011

 

20,015

 

35,869

 

7,691

 

87,586

Net earnings attributable to noncontrolling interest

(16,342)

 

(6,386)

 

(8,097)

 

(7,794)

 

(38,619)

                   

Net earnings (loss) attributable to Greenbrier

$         7,669

 

$       13,629

 

$       27,772

 

$         (103)

 

$      48,967

                   

Basic earnings per common share (1)

$           0.24

 

$           0.42

 

$           0.85

 

$          (0.00)

 

$           1.50

                   

Diluted earnings per common share (1)

$           0.23

 

$           0.41

 

$           0.83

 

$          (0.00)

 

$           1.46

                   

Dividends declared per common share

$           0.25

 

$           0.27

 

$           0.27

 

$         0.27

 

$           1.06

   

(1)

Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated by including the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved.

 
 
 

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

(In thousands, except per share amounts, unaudited)

 

Operating Results by Quarter for 2019 are as follows:

 
 

First

 

Second

 

Third

 

Fourth

 

Total

                   

Revenue

                 

   Manufacturing

$        471,789

 

$        476,019

 

$        681,588

 

$        802,103

 

$   2,431,499

   Wheels, Repair & Parts

108,543

 

125,278

 

124,980

 

85,701

 

444,502

   Leasing & Services

24,191

 

57,374

 

49,584

 

26,441

 

157,590

 

604,523

 

658,671

 

856,152

 

914,245

 

3,033,591

Cost of revenue

                 

   Manufacturing

417,805

 

442,996

 

590,788

 

686,036

 

2,137,625

   Wheels, Repair & Parts

100,978

 

118,455

 

119,821

 

81,636

 

420,890

   Leasing & Services

13,207

 

43,376

 

38,971

 

13,036

 

108,590

 

531,990

 

604,827

 

749,580

 

780,708

 

2,667,105

                   

Margin

72,533

 

53,844

 

106,572

 

133,537

 

366,486

                   

Selling and administrative expense

50,432

 

47,892

 

54,377

 

60,607

 

213,308

Net gain on disposition of equipment

(14,353)

 

(12,102)

 

(11,019)

 

(3,489)

 

(40,963)

Goodwill impairment

-

 

-

 

10,025

 

-

 

10,025

Earnings from operations

36,454

 

18,054

 

53,189

 

76,419

 

184,116

                   

Other costs

                 

Interest and foreign exchange

4,404

 

9,237

 

9,770

 

7,501

 

30,912

Earnings before income tax and earnings (loss)

   from unconsolidated affiliates          

32,050

 

8,817

 

43,419

 

68,918

 

153,204

Income tax expense

(9,135)

 

(2,248)

 

(13,008)

 

(17,197)

 

(41,588)

Earnings before earnings (loss) from

   unconsolidated affiliates          

22,915

 

6,569

 

30,411

 

51,721

 

111,616

Earnings (loss) from unconsolidated affiliates

467

 

(786)

 

(4,564)

 

(922)

 

(5,805)

                   

Net earnings

23,382

 

5,783

 

25,847

 

50,799

 

105,811

Net earnings attributable to

   noncontrolling interest

(5,426)

 

(3,018)

 

(10,599)

 

(15,692)

 

(34,735)

                   

Net earnings attributable to Greenbrier

$         17,956

 

$           2,765

 

$       15,248

 

$       35,107

 

$     71,076

                   

Basic earnings per common share (1)

$            0.55

 

$               0.08

 

$            0.47

 

$            1.08

 

$         2.18

                   

Diluted earnings per common share (1) 

$            0.54

 

$               0.08

 

$            0.46

 

$            1.06

 

$         2.14

                   

Dividends declared per common share

$            0.25

 

$               0.25

 

$            0.25

 

$            0.25

 

$         1.00

   

(1)

Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated by including the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved.

 
 
 

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

(In thousands, unaudited)

 

Segment Information

 

Three months ended August 31, 2020:

               
 

Revenue

 

Earnings (loss) from operations

 

External

 

Intersegment

 

  Total

 

External

 

Intersegment

 

Total

Manufacturing

$           549,654

 

$               1,683

 

$         551,337

 

$           29,695

 

$                  (19)

 

$       29,676

Wheels, Repair & Parts

64,813

 

95

 

64,908

 

813

 

3

 

816

Leasing & Services

21,958

 

10,898

 

32,856

 

6,520

 

10,528

 

17,048

Eliminations

-

 

(12,676)

 

(12,676)

 

-

 

(10,512)

 

(10,512)

Corporate

-

 

-

 

-

 

(15,631)

 

-

 

(15,631)

 

$           636,425

 

$                      -

 

$         636,425

 

$           21,397

 

$                      -

 

$      21,397

                 
                 

Three months ended May 31, 2020:

               
 

Revenue

 

Earnings (loss) from operations

 

External

 

Intersegment

 

  Total

 

External

 

Intersegment

 

Total

Manufacturing

$           653,007

 

$               1,151

 

$         654,158

 

$           68,445

 

$                    95

 

$       68,540

Wheels, Repair & Parts

82,024

 

1,527

 

83,551

 

3,785

 

(393)

 

3,392

Leasing & Services

27,526

 

14,841

 

42,367

 

11,837

 

14,454

 

26,291

Eliminations

-

 

(17,519)

 

(17,519)

 

-

 

(14,156)

 

(14,156)

Corporate

-

 

-

 

-

 

(17,255)

 

-

 

(17,255)

 

$           762,557

 

$                      -

 

$         762,557

 

$           66,812

 

$                      -

 

$      66,812

       
       
     

Total assets

     

   August 31,
2020

 

May 31,

2020

Manufacturing

$            1,301,715

 

$            1,441,052

Wheels, Repair & Parts

271,862

 

296,888

Leasing & Services

739,025

 

777,523

Unallocated, including cash

861,232

 

763,568

 

$            3,173,834

 

$            3,279,031

 
 
 

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

(In thousands, except per share amounts, unaudited)

 

Reconciliation of common shares outstanding

 

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,

2020

May 31,

2020

 

August 31,

2020

Weighted average basic common shares outstanding (1)

32,658

32,690

 

32,670

Dilutive effect of convertible notes (2)

-

-

 

-

Dilutive effect of restricted stock units (3)

-

788

 

771

Weighted average diluted common shares outstanding

32,658

33,478

 

33,441

         
           
   

(1)

Restricted stock grants and restricted stock units that are considered participating securities, 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 2.875% Convertible notes issued in February 2017 and the 2.25% Convertible notes issued in July 2019 were excluded for the periods in which they were outstanding as the average stock price was less than the applicable conversion price and therefore was anti-dilutive.

(3)

Restricted stock units that are not considered participating securities and restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position.

 
 
 

Reconciliation of Net earnings attributable to Greenbrier to Adjusted net earnings attributable to Greenbrier

 
     

Three Months Ended

 

Year Ended

     

August 31,

2020

 

May 31,

2020

 

August 31,

2020

Net earnings (loss) attributable to Greenbrier

$                 (103)

 

$              27,772

 

$              48,967

ARI integration related costs, net of tax (1)

1,936

 

2,539

 

8,358

Severance expense, net of tax & noncontrolling interest (2)

3,636

 

4,803

 

12,867

Adjusted net earnings attributable to Greenbrier

$                5,469

 

$              35,114

 

$              70,192

   

(1)

Net of tax of $620, $813, and $2,689, respectively.

(2)

Net of tax and noncontrolling interest of $2,283, $1,538 and $8,334, respectively.

 
 
 

Reconciliation of Diluted earnings per share to Adjusted diluted earnings per share

 
     

Three Months Ended

 

Year Ended

     

August 31,

2020

 

May 31,

2020

 

August 31,

2020

Diluted earnings per share

$                   0.00

 

$                   0.83

 

$                   1.46

ARI integration related costs, net of tax

0.06

 

0.08

 

0.26

Severance expense, net of tax & noncontrolling interest

0.10

 

0.14

 

0.38

Adjusted diluted earnings per share

$                   0.16

 

$                   1.05

 

$                   2.10

 

Weighted average diluted shares used to calculate Adjusted diluted earnings per share

 

33,519

 

 

33,478

 

 

33,441

"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, and variations of words, such as "achieve," "align," "believe," "continue," "improve,"  "maintain," "target," "will," "working," and similar expressions to identify forward-looking statements. These forward-looking statements include, without limitation, statements about backlog, future liquidity and cash flow, spending reductions, available borrowing capacity, lower capital expenditures, expected trends as well as other information regarding future performance and strategies and appear throughout this press release including in the headlines and the sections "Fourth Quarter Highlights" and "Business Update & Outlook." 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, the following. (1) We are unable to predict when, how, or with what magnitude COVID-19 governmental reaction to the pandemic, and related economic disruptions will negatively impact our business: we may be prevented from operating our facilities; the operations of our customers may be disrupted increasing the likelihood that our customers may attempt to delay, defer or cancel orders,  or cease to operate as going concerns; the operations of our suppliers may be disrupted; our indebtedness may increase; we may breach the covenants in our credit agreement; the market price of our common stock may drop or remain volatile; we may incur significant employee health care costs under our self-insurance programs. The longer the pandemic continues, the more likely that negative impacts on our business will occur, some of which we cannot now foresee. (2) Our backlog of railcar units and marine vessels is not necessarily indicative of future results of operations. Certain orders in backlog are subject to customary documentation which may not occur. Customers may attempt to cancel or modify orders or refuse to accept and pay for products. The likelihood of cancellations, modifications, rejection and non-payment for our products generally increases during periods of market weakness. The timing of converting backlog to revenue is also materially impacted by our decision whether to lease railcars, sell railcars, or syndicate railcars with a lease attached to an investor. More information on potential factors that could cause our results to differ from our forward-looking statements is included in the Company's filings with the SEC, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's most recently filed periodic report on Form 10-K. Except as otherwise required by law, the Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date hereof.

Adjusted Financial Metric Definitions

Adjusted EBITDA, Adjusted net earnings attributable to Greenbrier and Adjusted diluted EPS are not financial measures under generally accepted accounting principles (GAAP). These metrics are performance measurement tools used by rail supply companies and Greenbrier. You should not consider these metrics in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because these metrics are not a measure of financial performance under GAAP and are susceptible to varying calculations, the measures presented may differ from and may not be comparable to similarly titled measures used by other companies.

We define Adjusted EBITDA as Net earnings before Interest and foreign exchange, Income tax expense, Depreciation and amortization and excluding the impact associated with items we do not believe are indicative of our core business or which affect comparability. We believe the presentation of Adjusted EBITDA provides useful information as it excludes the impact of financing, foreign exchange, income taxes and the accounting effects of capital spending. These items may vary for different companies for reasons unrelated to the overall operating performance of a company's core business. We believe this assists in comparing our performance across reporting periods.

Adjusted net earnings attributable to Greenbrier and Adjusted diluted EPS excludes the impact associated with items we do not believe are indicative of our core business or which affect comparability. We believe this assists in comparing our performance across reporting periods.

 

SOURCE The Greenbrier Companies, Inc.

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