Press Releases

Greenbrier Reports Second Quarter Results
Strong liquidity positions Greenbrier for upcoming recovery
Orders for 3,800 new railcars valued at over $440 million - book-to-bill of 1.8x in the quarter
Backlog expanded to 24,900 units with estimated value of $2.5 billion
Trailing effects of COVID-19 and inclement weather produced a net loss attributable to Greenbrier of $9 million
Completed formation of GBX Leasing joint venture

LAKE OSWEGO, Ore., April 6, 2021 /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 second fiscal quarter ended February 28, 2021.

Second Quarter Highlights

  • New railcar orders for 3,800 units valued at over $440 million during the quarter. Deliveries in the quarter were 2,100 units, a 1.8x book-to-bill.
  • Diversified new railcar backlog as of February 28, 2021 was 24,900 units with an estimated value of $2.5 billion.
  • Immediate liquidity of $708 million, includes $593 million in cash and $115 million of available borrowing capacity.  Combined with nearly $100 million of liquidity initiatives in progress totals over $800 million.
  • Operating cash flow in the quarter included inventory accumulation of $48 million to support manufacturing production increases beginning in fiscal Q3 and a $44 million increase in leased railcars for syndication.
  • COVID-19 related expenses for the quarter were $2.5 million (pre-tax) and $6.4 million (pre-tax) for the first half of fiscal 2021.
  • Net loss attributable to Greenbrier for the quarter was $9 million, or $0.28 per diluted share, on revenue of $296 million.  The net loss included $16 million in anticipated federal income tax benefit resulting from loss carryback provisions.
  • Adjusted EBITDA for the quarter was negative $1 million.
  • Subsequent to quarter-end, completed the earlier announced formation of GBX Leasing joint venture, including initial funding of nearly $100 million from a new $300 million non-recourse railcar warehouse credit facility.
  • Board declares a quarterly dividend of $0.27 per share, payable on May 12, 2021 to shareholders as of April 21, 2021 representing Greenbrier's 28th consecutive quarterly dividend.

William A. Furman, Chairman & CEO commented, "Greenbrier navigated what we expect will be our most challenging quarter of the fiscal year.  Operating challenges emerged from a range of sources, including winter weather, impacting deliveries and production.  Our near-term outlook is becoming increasingly optimistic as rail fundamentals improve.  Rail loadings are up year-to-date, driven by increased traffic in grain, intermodal and other categories.  Railroad velocity has slowed by nearly two miles per hour. Railcars in storage have decreased by more than 148,000 units from the 2020 peak storage level.  Proposed environmental and other regulations in both North America and Europe should support secular demand for rail as a growing mode for freight transport. Fiscal stimulus and proposed infrastructure legislation are expected to further add to demand."

Furman concluded, "Greenbrier is well-positioned for an economic recovery. Our pipeline of new business inquiries in North America has expanded dramatically in the last 30 days. Greenbrier's ability to adjust production capacity to meet our market outlook enables us to rapidly ramp manufacturing as we earn new railcar orders.  We have already restarted several production lines supported by firm orders to meet increased demand."

Business Update & Outlook

Greenbrier has practiced disciplined management to meet the realities of this historic time.  Our core strategy since March 2020 has been and continues to be:

  1. Maintain a strong liquidity base and balance sheet
  2. Navigate the COVID-19 pandemic and the related economic crisis by safely operating our factories while generating cash
  3. Prepare for emerging economic recovery and forward momentum in our markets, which we expect to expand during the latter half of calendar 2021. Greenbrier is currently operating in this phase.

Looking ahead, Greenbrier expects the second half of fiscal 2021 to be stronger than the first half, reflecting increased production rates and stronger activity across the business.  Greenbrier's ability to achieve more than $700 million of total liquidity, with another $100 million of initiatives in process, allows us to weather unanticipated setbacks in the emerging economic recovery. Our $2.5 billion backlog provides a baseload of orders to support continuous production lines.  These factors position us to deploy our balance sheet opportunistically, as we have done with GBX Leasing.  The recently-announced joint venture complements Greenbrier's existing commercial platform and will create stable, tax-advantaged cash flows, reducing our exposure to the new railcar order and delivery cycle.

Financial Summary

 

Q2 FY21

Q1 FY21

Sequential Comparison – Main Drivers

Revenue

$295.6M

$403.0M

37% fewer deliveries reflecting weak demand
environment and extreme winter weather

Gross margin

6.0%

10.1%

Selling and administrative

$43.4M

$43.7M

Maintaining cost discipline

Adjusted EBITDA

($1.3M)

$23.2M

Low new railcar deliveries and weak NA environment

Effective tax rate

61.6%

55.5%

Tax benefit from lease fleet investments and operating
losses carried back to prior years with higher tax rates
under the CARES Act

Net (earnings) loss attributable to
noncontrolling interest

4.9M

($3.3M)

Operating loss from fewer deliveries at GIMSA joint
venture

Net loss attributable to
Greenbrier

($9.1M)

($10.0M)

Lower operating activity reflecting fewer deliveries
partially offset by income tax benefit

Diluted EPS

($0.28)

($0.30)

 

Segment Summary

 

Q2 FY21

Q1 FY21

Sequential Comparison – Main Drivers

Manufacturing

  Revenue

$202.1M

$308.7M

Fewer deliveries reflecting weak demand environment
and winter weather closures

  Gross margin

0.2%

9.0%

  Operating margin (1)

(8.5%)

3.1%

  Deliveries (2)

1,700

2,700

 

Wheels, Repair & Parts

  Revenue

$71.6M

$65.6M

Modestly increased wheel volumes from winter
weather and improved scrap pricing partially offset by
continued decreased Repair volumes

  Gross margin

6.9%

3.9%

Improved volume in Wheel Services partially offset
by weak Repair activity

  Operating margin (1)

3.4%

(0.3%)

 

Leasing & Services

  Revenue

$21.9M

$28.7M

Prior quarter had externally sourced syndication
activity which increases revenue but is dilutive to
gross margin %

  Gross margin

56.6%

35.8%

More normalized gross margin activity

  Operating margin (1) (3)

29.3%

20.5%

Strong gross margin performance

  Fleet utilization

94.8%

93.3%

 

 

(1)

See supplemental segment information on page 12 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 second quarter 2021 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. 

Teleconference details are as follows:

  • April 6, 2021
  • 8:00 a.m. Pacific Daylight Time
  • Phone: 1-888-317-6003 (Toll Free) 1-412-317-6061 (International), Entry Number "7592105"
  • 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 the nations of the Gulf Cooperation Council. 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 8,700 railcars and performs management services for 445,000 railcars. Learn more about Greenbrier at www.gbrx.com.  

 

THE GREENBRIER COMPANIES, INC.

Consolidated Balance Sheets

(In thousands, unaudited)

 
 

February 28,
2021

November 30,
2020

August 31,

2020

May 31,

2020

February 29,

2020

Assets

         

   Cash and cash equivalents

$       593,499

$       724,547

$       833,745

$       735,258

$       169,899

   Restricted cash

8,614

8,547

8,342

8,704

8,569

   Accounts receivable, net 

236,171

216,220

230,488

261,629

325,056

   Income tax receivable   

62,103

24,448

9,109

-

1,173

   Inventories

522,984

490,282

529,529

675,442

709,115

   Leased railcars for syndication

109,287

51,087

107,671

136,144

255,073

   Equipment on operating leases, net

445,451

445,542

350,442

355,841

385,974

   Property, plant and equipment, net

687,468

696,333

711,524

719,155

723,326

   Investment in unconsolidated affiliates

70,820

72,254

72,354

75,508

79,082

   Intangibles and other assets, net

190,283

186,509

190,322

181,315

160,709

   Goodwill

132,685

130,315

130,308

130,035

129,684

 

$   3,059,365

$   3,046,084

$   3,173,834

$   3,279,031

$   2,947,660

           

Liabilities and Equity

         

   Revolving notes

$       275,839

$       276,248

$       351,526

$       416,535

$         37,196

   Accounts payable and accrued liabilities

448,571

434,138

463,880

488,969

499,898

   Deferred income taxes

24,798

10,120

7,701

4,354

9,173

   Deferred revenue

42,572

36,916

42,467

63,536

70,869

   Notes payable, net

793,189

797,089

804,088

806,919

811,860

           

Contingently redeemable noncontrolling          interest

30,037

30,711

31,117

30,611

30,782

           

   Total equity – Greenbrier

1,268,502

1,280,407

1,293,043

1,291,221

1,286,472

   Noncontrolling interest

175,857

180,455

180,012

176,886

201,410

   Total equity

1,444,359

1,460,862

1,473,055

1,468,107

1,487,882

 

$   3,059,365

$   3,046,084

$   3,173,834

$   3,279,031

$   2,947,660

 

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Operations

(In thousands, except per share amounts, unaudited)

 
 

Three Months Ended

 

Six Months Ended

 
 

February 28,

 

February 29,

 

February 28,

 

February 29,

 
 

2021

 

2020

 

2021

 

2020

 

Revenue

               

        Manufacturing

$        202,094

 

$       489,943

 

$        510,816

 

$     1,147,310

 

        Wheels, Repair & Parts

71,623

 

91,225

 

137,179

 

177,833

 

        Leasing & Services

21,905

 

42,680

 

50,616

 

68,064

 
 

295,622

 

623,848

 

698,611

 

1,393,207

 

Cost of revenue

               

        Manufacturing

201,771

 

422,309

 

482,661

 

1,004,221

 

        Wheels, Repair & Parts

66,667

 

84,373

 

129,651

 

166,265

 

        Leasing & Services

9,513

 

30,830

 

27,957

 

44,196

 
 

277,951

 

537,512

 

640,269

 

1,214,682

 
                 

Margin

17,671

 

86,336

 

58,342

 

178,525

 
                 

Selling and administrative expense

43,425

 

54,597

 

87,132

 

108,961

 

Net gain on disposition of equipment

(27)

 

(6,697)

 

(949)

 

(10,656)

 

Earnings (loss) from operations

(25,727)

 

38,436

 

(27,841)

 

80,220

 
                 

Other costs

               

Interest and foreign exchange

9,568

 

12,609

 

20,671

 

25,461

 

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

(35,295)

 

25,827

 

(48,512)

 

54,759

 

Income tax benefit (expense)

21,752

 

(7,463)

 

29,084

 

(13,457)

 

Earnings (loss) before earnings (loss) from 

   unconsolidated affiliates

(13,543)

 

18,364

 

(19,428)

 

41,302

 

Earnings (loss) from unconsolidated affiliates

(378)

 

1,651

 

(1,122)

 

2,724

 

Net earnings (loss)

(13,921)

 

20,015

 

(20,550)

 

44,026

 

Net (earnings) loss attributable to noncontrolling interest

4,856

 

(6,386)

 

1,513

 

(22,728)

 
                 

Net earnings (loss) attributable to Greenbrier

$              (9,065)

 

$         13,629

 

$           (19,037)

 

$           21,298

 
                 

Basic earnings (loss) per common share:

$             (0.28)

 

$            0.42

 

$               (0.58)

 

$                0.65

 
                 

Diluted earnings (loss) per common share:

$                (0.28)

 

$            0.41

 

$               (0.58)

 

$                0.64

 
                 

Weighted average common shares:

               

Basic

32,810

 

32,661

 

32,766

 

32,645

 

Diluted

32,810

 

33,482

 

32,766

 

33,382

 
                 

Dividends per common share

$                 0.27

 

$                0.27

 

$                 0.54

 

$                0.52

 
                       

 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

(In thousands, except per share amounts, unaudited)

 

Operating Results by Quarter for 2021 are as follows:

 
 

First

 

Second

 

Total

 
             

Revenue

           

   Manufacturing

$    308,722

 

$    202,094

 

$     510,816

 

   Wheels, Repair & Parts

65,556

 

71,623

 

137,179

 

   Leasing & Services

28,711

 

21,905

 

50,616

 
 

402,989

 

295,622

 

698,611

 

Cost of revenue

           

   Manufacturing

280,890

 

201,771

 

482,661

 

   Wheels, Repair & Parts

62,984

 

66,667

 

129,651

 

   Leasing & Services

18,444

 

9,513

 

27,957

 
 

362,318

 

277,951

 

640,269

 
             

Margin

40,671

 

17,671

 

58,342

 
             

Selling and administrative expense

43,707

 

43,425

 

87,132

 

Net gain on disposition of equipment

(922)

 

(27)

 

(949)

 

Loss from operations

(2,114)

 

(25,727)

 

(27,841)

 
             

Other costs

           

Interest and foreign exchange

11,103

 

9,568

 

20,671

 

Loss before income tax and loss from unconsolidated

affiliates

(13,217)

 

(35,295)

 

(48,512)

 

Income tax benefit

7,332

 

21,752

 

29,084

 

Loss before loss from unconsolidated affiliates

(5,885)

 

(13,543)

 

(19,428)

 

Loss from unconsolidated affiliates

(744)

 

(378)

 

(1,122)

 
             

Net Loss

(6,629)

 

(13,921)

 

(20,550)

 

Net (earnings) loss attributable to noncontrolling interest

(3,343)

 

4,856

 

1,513

 
             

Net Loss attributable to Greenbrier

$        (9,972)

 

$        (9,065)

 

$     (19,037)

 
             

Basic loss per common share (1)

$          (0.30)

 

$          (0.28)

 

$          (0.58)

 
             

Diluted loss per common share (1)

$          (0.30)

 

$          (0.28)

 

$          (0.58)

 
             

Dividends per common share

$           0.27

 

$           0.27

 

$           0.54

 

 

(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 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 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.

Consolidated Statements of Cash Flows

(In thousands, unaudited) 

 
     

Six Months Ended

 
     

February 28,

   

February 29,

 
     

2021

   

2020

 

Cash flows from operating activities

             

    Net earnings (loss)

 

$

(20,550)

 

$

44,026

 

    Adjustments to reconcile net earnings (loss) to net cash used in

     operating activities:

             

      Deferred income taxes

   

16,969

   

(6,714)

 

      Depreciation and amortization

   

50,868

   

59,338

 

      Net gain on disposition of equipment

   

(949)

   

(10,656)

 

      Accretion of debt discount

   

2,857

   

2,718

 

      Stock based compensation expense

   

8,951

   

7,237

 

     Noncontrolling interest adjustments

   

(1,285)

   

9,038

 

      Other

   

1,135

   

(39)

 

      Decrease (increase) in assets:

             

          Accounts receivable, net

   

(10,735)

   

47,282

 

          Income tax receivable

   

(52,994)

   

(1,173)

 

          Inventories

   

(35,005)

   

(55,158)

 

          Leased railcars for syndication

   

(37,988)

   

(123,033)

 

          Other assets

   

(2,895)

   

(39,433)

 

      Increase (decrease) in liabilities:

             

          Accounts payable and accrued liabilities

   

(13,257)

   

(67,988)

 

          Deferred revenue

   

104

   

1,381

 

    Net cash used in operating activities

   

(94,774)

   

(133,174)

 

Cash flows from investing activities

             

    Proceeds from sales of assets

   

11,336

   

41,827

 

    Capital expenditures

   

(50,353)

   

(40,834)

 

   Investments in and advances to/repayments from unconsolidated affiliates

   

4,523

   

(1,500)

 

   Cash distribution from unconsolidated affiliates and other

   

488

   

11,273

 

    Net cash provided by (used in) investing activities

   

(34,006)

   

10,766

 

Cash flows from financing activities

             

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

   

98,442

   

10,246

 

    Proceeds from revolving notes with maturities longer than 90 days

   

112,000

   

-

 

   Repayments of revolving notes with maturities longer than 90 days

   

(286,000)

   

-

 

   Repayments of notes payable

   

(14,990)

   

(17,120)

 

    Dividends

   

(18,046)

   

(17,312)

 

    Cash distribution to joint venture partner

   

(3,646)

   

(8,706)

 

    Tax payments for net share settlement of restricted stock

   

(2,357)

   

(1,895)

 

    Net cash used in financing activities

   

(114,597)

   

(34,787)

 

Effect of exchange rate changes

   

3,403

   

(2,824)

 

Decrease in cash, cash equivalents and restricted cash

   

(239,974)

   

(160,019)

 

Cash and cash equivalents and restricted cash

             

    Beginning of period

   

842,087

   

338,487

 

    End of period

 

$

602,113

 

$

178,468

 

Balance Sheet Reconciliation

             

    Cash and cash equivalents

 

$

593,499

 

$

169,899

 

    Restricted cash

   

8,614

   

8,569

 

    Total cash and cash equivalents and restricted cash as presented above

 

$

602,113

 

$

178,468

 

 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

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

Reconciliation of Net loss to Adjusted EBITDA

 
 

Three Months Ended

 
 

February 28,

2021

 

November 30,

2020

 

Net loss

$            (13,921)

 

$              (6,629)

 

Interest and foreign exchange

9,568

 

11,103

 

Income tax benefit

(21,752)

 

(7,332)

 

Depreciation and amortization

24,822

 

26,046

 

Adjusted EBITDA

$             (1,283)

 

$             23,188

 
           

 

 

Three Months
Ended

 

February 28,

2021

Backlog Activity (units) (1)

       

Beginning backlog

23,900

 

Orders received

3,800

 

Production held as Leased railcars for syndication

(800)

 

Production sold directly to third parties

(2,000)

 

Ending backlog

24,900

 
     

Delivery Information (units) (1)

   

Production sold directly to third parties

2,000

 

Sales of Leased railcars for syndication

100

 

Total deliveries

2,100

 

 

(1)

Includes Greenbrier-Maxion, our Brazilian railcar manufacturer, which is accounted for under the equity method

 

 

THE GREENBRIER COMPANIES, INC.

Supplemental Leasing Information

(In thousands, except owned and managed fleet, unaudited)

 
 

February 28,

2021

 

November 30,

2020

Owned fleet

8,700

 

8,400

Managed fleet

445,000

 

407,000

Owned fleet utilization

95%

 

93%

       
 

February 28,

2021

 

November 30,

2020

Leased railcars for syndications

$                    109,287

 

$                      51,087

Equipment on operating lease

445,451

 

445,542

Total

$                    554,738

 

$                    496,629

       

Leasing non-recourse debt

$                    204,722

 

$                   206, 629

Recourse debt

588,467

 

590,460

Total debt

$                    793,189

 

$                    797,089

       

Fleet leverage %(1)

37%

 

42%

 

(1)

Leasing non-recourse debt / Sum of leased railcars for syndication and equipment on operating lease

 

 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

(In thousands, unaudited)

 

Segment Information

 

Three months ended February 28, 2021:

                 
 

Revenue

 

Earnings (loss) from operations

 
 

External

 

Intersegment

 

  Total

 

External

 

Intersegment

 

Total

 

Manufacturing

$           202,094

 

$               2,425

 

$         204,519

 

$          (17,216)

 

$                  100

 

$      (17,116)

 

Wheels, Repair & Parts

71,623

 

1,603

 

73,226

 

2,433

 

(14)

 

2,419

 

Leasing & Services

21,905

 

1,113

 

23,018

 

6,420

 

634

 

7,054

 

Eliminations

-

 

(5,141)

 

(5,141)

 

-

 

(720)

 

(720)

 

Corporate

-

 

-

 

-

 

(17,364)

 

-

 

(17,364)

 
 

$           295,622

 

$                      -

 

$         295,622

 

$          (25,727)

 

$                      -

 

$     (25,727)

 
                   

Three months ended November 30, 2020:

                 
 

Revenue

 

Earnings (loss) from operations

 
 

External

 

Intersegment

 

  Total

 

External

 

Intersegment

 

Total

 

Manufacturing

$           308,722

 

$             20,591

 

$         329,313

 

$             9,686

 

$               2,505

 

$       12,191

 

Wheels, Repair & Parts

65,556

 

301

 

65,857

 

(200)

 

(9)

 

(209)

 

Leasing & Services

28,711

 

4,665

 

33,376

 

5,890

 

4,285

 

10,175

 

Eliminations

-

 

(25,557)

 

(25,557)

 

-

 

(6,781)

 

(6,781)

 

Corporate

-

 

-

 

-

 

(17,490)

 

-

 

(17,490)

 
 

$           402,989

 

$                      -

 

$         402,989

 

$            (2,114)

 

$                      -

 

$       (2,114)

 

 

     

Total assets

 
     

   February 28,
2021

 

November 30,

2020

 

Manufacturing

$              1,313,819

 

$              1,264,616

 

Wheels, Repair & Parts

277,788

 

274,534

 

Leasing & Services

851,546

 

758,820

 

Unallocated

616,212

 

748,114

 
 

$              3,059,365

 

$              3,046,084

 

 

"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  "adjust," "become," "continue," "expect," "maintain," "outlook," "position," "should," "will," and similar expressions to identify forward-looking statements. These forward-looking statements include, without limitation, statements about backlog, and future liquidity and cash flow as well as other information regarding future performance and strategies and appear throughout this press release including in the headlines and the section "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. (3) Our joint ventures, including our leasing joint venture, may not perform as anticipated or expected. 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 and subsequent report on 10-Q. 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 (loss) 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 (loss) before Interest and foreign exchange, Income tax benefit (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 (loss) 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, Roberts, Investor Relations, Ph: 503-684-7000