Press Releases

Greenbrier Reports Third Quarter Results
GAAP diluted EPS of $0.59; Adjusted diluted EPS of $0.69
Orders for 3,800 new railcars valued at $400 million - book-to-bill of 1.2x in the quarter
Formation and funding of GBX Leasing finalized in the quarter
Robust liquidity supports increasing operating momentum

 

LAKE OSWEGO, Ore., July 9, 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 third fiscal quarter ended May 31, 2021.

Third Quarter Highlights

  • New railcar orders for 3,800 units valued at $400 million and deliveries of 3,300 units, resulted in a 1.2x book-to-bill. This is the second consecutive quarter that book-to-bill exceeded 1.0x. Orders included intermodal units, tank cars, boxcars and covered hoppers.
  • Diversified new railcar backlog as of May 31, 2021 was 24,800 units with an estimated value of $2.6 billion.
  • Liquidity of approximately $850 million, including $628 million in cash and $221 million of available borrowing capacity. Liquidity and $149 million of initiatives in progress total nearly $1 billion.
  • COVID-19 related expenses for the quarter were $1.9 million (pre-tax) and $8.3 million (pre-tax) for the nine months ended May 31, 2021.
  • Net earnings attributable to Greenbrier for the quarter were $19.7 million, or $0.59 per diluted share, on revenue of $450 million. Net earnings included $3.6 million ($0.10 per share), of loss on extinguishment of debt, net of tax.
  • Adjusted net earnings attributable to Greenbrier for the quarter were $23.3 million or $0.69 per diluted share and adjusted EBITDA for the quarter was $53 million.
  • GBX Leasing was formed in the quarter to create stable, tax-advantaged cash flows with initial railcar funding of nearly $100 million, under a $300 million non-recourse warehouse credit facility. GBX Leasing is consolidated in Greenbrier's financial statements, see supplemental information in this release.
  • Debt maturities were extended in the quarter with the issuance of $374 million of senior convertible notes due in 2028 and retirement of $257 million of 2024 senior convertible notes.
  • Repurchased $20 million of common stock in connection with the convertible note issuance. $100 million remains authorized under the share repurchase plan.
  • Board declares a quarterly dividend of $0.27 per share, payable on August 18, 2021 to shareholders of record as of July 28, 2021 representing Greenbrier's 29th consecutive quarterly dividend.

William A. Furman, Chairman & CEO commented, "Greenbrier's financial results for the third fiscal quarter reflect the steady recovery in our markets that we forecasted would occur in the second half of our fiscal year. Our COVID strategy launched in March 2020 has been very successful. We are executing well on plans to maintain a liquidity base and strong balance sheet as well as safely operate each of our facilities. All of this has been necessary to prepare for the now emerging recovery.  As positive momentum continues, we are seizing opportunities to resume the pursuit of scale we began during the two years prior to the pandemic. In the third fiscal quarter this included the formation of GBX Leasing and completion of a strategic debt refinancing that extended maturities on convertible notes by four years."

Furman added, "We are benefiting from the economic recovery in railcar manufacturing and leasing as expected. This is playing out through sequential monthly increases in manufacturing revenues and a meaningful increase in new order activity in our core North American markets.  The ability to ramp production capacity is integral to protecting Greenbrier's leadership position in the market.  New orders will not increase linearly, but we expect commercial activity to remain strong as our $2.6 billion backlog provides a baseload of orders to support the expanded operation of production lines and our leasing business."

Business Update & Outlook

Greenbrier's adherence to its core COVID strategy during the third fiscal quarter produced the best quarterly performance to date in fiscal 2021. Since March 2020, Greenbrier has practiced disciplined management to meet the realities of this once in 100 years pandemic. Operating and commercial momentum is building. In our domestic and international markets, Greenbrier's core COVID strategy was 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 flow
  3. Prepare for emerging economic recovery and forward momentum in our markets. Greenbrier is currently operating in this phase.  Greenbrier is well-positioned to navigate the immediate challenges of increasing production rates safely amidst the emerging COVID variants, while ensuring labor and supply chain continuity.

Looking ahead, Greenbrier expects the fourth quarter to be the strongest performance of the year.  A full quarter of increased production rates and business activity creates positive momentum into fiscal 2022.

Financial Summary

 

Q3 FY21

Q2 FY21

Sequential Comparison – Main Drivers

Revenue

$450.1M

$295.6M

65% higher deliveries reflecting increased production levels and overall improving demand environment

Gross margin

16.7%

6.0%

Primarily increased production rates in Manufacturing and favorable resolution of warranty & other contingencies in international operations

Selling and administrative

$49.2M

$43.4M

Increased consulting and employee-related costs including performance-based compensation expense

Adjusted EBITDA

$52.9M

($1.3M)

Higher operating earnings reflecting improving demand environment; See reconciliation on page 12

Net (earnings) loss attributable to noncontrolling interest

($0.3M)

$4.9M

Increased operating activity at GIMSA joint venture

Adjusted net earnings (loss) attributable to Greenbrier

$23.3M(1)

($9.1M)

Primarily increased activity across all business units and tax benefit from lease fleet investments and operating losses carried back to prior years with higher tax rates allowable under the CARES Act

Adjusted diluted EPS

$0.69(1)

($0.28)

 
 

(1) Excludes $3.6 million ($0.10 per share), net of tax, of loss on debt extinguishment.

Segment Summary
 

 

Q3 FY21

Q2 FY21

Sequential Comparison – Main Drivers

Manufacturing

  Revenue

$341.9M

$202.1M

Higher deliveries reflecting improving demand levels

  Gross margin

14.5%

0.2%

Higher production & delivery and favorable resolution of warranty and other contingencies; Excluding these items, gross margin would be in the low double digits

  Operating margin (1)

9.2%

(8.5%)

 

  Deliveries (2)

2,800

1,700

Higher production rates

Wheels, Repair & Parts

  Revenue

$80.9M

$71.6M

Increased demand levels across the network

  Gross margin

8.9%

6.9%

Higher volumes driving improved performance

  Operating margin (1)

5.2%

3.4%

 

Leasing & Services (including GBX Leasing)

  Revenue

$27.3M

$21.9M

Revenue and margin include enhanced syndication financing activity

  Gross margin

67.6%

56.6%

  Operating margin (1) (3)

44.9%

29.3%

  Fleet utilization

93.8%

94.8%

 
 

(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 loss (gain) on disposition of equipment, which is excluded from gross margin. 

Conference Call

Greenbrier will host a teleconference to discuss its third quarter 2021 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. 
Teleconference details are as follows:

  • July 9, 2021
  • 8:00 a.m. Pacific Daylight Time
  • Phone: 1-888-317-6003 (Toll Free) 1-412-317-6061 (International), Entry Number "2776228"
  • Real-time Audio Access: ("Newsroom" at http://www.gbrx.com)

Please access the site 10-15 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. Through its wholly-owned subsidiaries and joint ventures, Greenbrier designs, builds and markets freight railcars and marine barges in North America, Europe and Brazil. 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 manages 445,000 railcars and offers railcar management, regulatory compliance services and leasing services to railroads and other railcars owners in North America.  GBX Leasing (GBXL) is a special purpose subsidiary that owns and manages a portfolio of leased railcars that originate primarily from Greenbrier's manufacturing operations. Together, GBXL and Greenbrier own a lease fleet of 8,700 railcars.  Learn more about Greenbrier at www.gbrx.com.

THE GREENBRIER COMPANIES, INC.

Consolidated Balance Sheets

(In thousands, unaudited)

 
 

May 31,

2021

February 28,
2021

November 30,
2020

August 31,

2020

May 31,

2020

Assets

         

   Cash and cash equivalents

$       628,200

$       593,499

$       724,547

$       833,745

$       735,258

   Restricted cash

8,689

8,614

8,547

8,342

8,704

   Accounts receivable, net 

274,792

236,171

216,220

230,488

261,629

   Income tax receivable   

75,135

62,103

24,448

9,109

-

   Inventories

553,137

522,984

490,282

529,529

675,442

   Leased railcars for syndication

154,017

109,287

51,087

107,671

136,144

   Equipment on operating leases, net

446,888

445,451

445,542

350,442

355,841

   Property, plant and equipment, net

676,010

687,468

696,333

711,524

719,155

   Investment in unconsolidated affiliates

79,420

70,820

72,254

72,354

75,508

   Intangibles and other assets, net

180,829

190,283

186,509

190,322

181,315

   Goodwill

133,050

132,685

130,315

130,308

130,035

 

$   3,210,167

$   3,059,365

$   3,046,084

$   3,173,834

$   3,279,031

           

Liabilities and Equity

         

   Revolving notes

$       325,150

$       275,839

$       276,248

$       351,526

$       416,535

   Accounts payable and accrued liabilities

480,373

448,571

434,138

463,880

488,969

   Deferred income taxes

44,900

24,798

10,120

7,701

4,354

   Deferred revenue

43,676

42,572

36,916

42,467

63,536

   Notes payable, net

835,027

793,189

797,089

804,088

806,919

           

Contingently redeemable noncontrolling interest

30,323

30,037

30,711

31,117

30,611

           

   Total equity – Greenbrier

1,286,763

1,268,502

1,280,407

1,293,043

1,291,221

   Noncontrolling interest

163,955

175,857

180,455

180,012

176,886

   Total equity

1,450,718

1,444,359

1,460,862

1,473,055

1,468,107

 

$   3,210,167

$   3,059,365

$   3,046,084

$   3,173,834

$   3,279,031

 

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Income

(In thousands, except per share amounts, unaudited)

 
 

Three Months Ended

May 31,

 

Nine Months Ended
May 31,

 

2021

 

2020

 

2021

 

2020

 

Revenue

 

        Manufacturing

$        341,939

 

$       653,007

 

$        852,755

 

$     1,800,317

        Wheels, Repair & Parts

80,871

 

82,024

 

218,050

 

259,857

        Leasing & Services

27,333

 

27,526

 

77,949

 

95,590

 

450,143

 

762,557

 

1,148,754

 

2,155,764

Cost of revenue

             

        Manufacturing

292,464

 

562,793

 

775,125

 

1,567,014

        Wheels, Repair & Parts

73,690

 

75,001

 

203,341

 

241,266

        Leasing & Services

8,857

 

17,232

 

36,814

 

61,428

 

375,011

 

655,026

 

1,015,280

 

1,869,708

               

Margin

75,132

 

107,531

 

133,474

 

286,056

               

Selling and administrative expense

49,239

 

49,494

 

136,371

 

158,455

Net (gain) loss on disposition of equipment

184

 

(8,775)

 

(765)

 

(19,431)

Earnings (loss) from operations

25,709

 

66,812

 

(2,132)

 

147,032

               

Other costs

             

Interest and foreign exchange

10,204

 

7,562

 

30,875

 

33,023

Net loss on extinguishment of debt

4,763

 

-

 

4,763

 

-

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

10,742

 

59,250

 

(37,770)

 

114,009

Income tax benefit (expense)

6,914

 

(24,421)

 

35,998

 

(37,878)

Earnings (loss) before earnings from 

   unconsolidated affiliates

17,656

 

34,829

 

(1,772)

 

76,131

Earnings from unconsolidated affiliates

2,379

 

1,040

 

1,257

 

3,764

 

Net earnings (loss)

20,035

 

35,869

 

(515)

 

79,895

Net (earnings) loss attributable to noncontrolling interest

(298)

 

(8,097)

 

1,215

 

(30,825)

               

Net earnings attributable to Greenbrier

$             19,737

 

$         27,772

 

$                700

 

$           49,070

               

Basic earnings per common share:

$                 0.61

 

$            0.85

 

$                0.02

 

$                1.50

               

Diluted earnings per common share:

$                  0.59

 

$            0.83

 

$                0.02

 

$                1.47

               

Weighted average common shares:

             

Basic

32,573

 

32,690

 

32,726

 

32,660

Diluted

33,605

 

33,478

 

33,747

 

33,414

               

Dividends per common share

$                  0.27

 

$                0.27

 

$                0.81

 

$                0.79

                 

 

 

 

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Cash Flows

(In thousands, unaudited) 

 
     

Nine Months Ended

May 31,

     

2021

   

2020

             

Cash flows from operating activities

           

    Net earnings (loss)

 

$

(515)

 

$

79,895

    Adjustments to reconcile net earnings (loss) provided by (used in)

     operating activities:

           

      Deferred income taxes

   

20,197

   

(11,450)

      Depreciation and amortization

   

75,637

   

82,452

      Net gain on disposition of equipment

   

(765)

   

(19,431)

      Accretion of debt discount

   

4,639

   

4,102

      Stock based compensation expense

   

12,468

   

8,265

     Net loss on extinguishment of debt

   

4,763

   

-

     Noncontrolling interest adjustments

   

343

   

2,826

      Other

   

1,729

   

568

      Decrease (increase) in assets:

           

          Accounts receivable, net

   

(49,160)

   

110,431

          Income tax receivable

   

(66,026)

   

-

          Inventories

   

(92,294)

   

12,555

          Leased railcars for syndication

   

(55,532)

   

(38,826)

          Other assets

   

863

   

(59,212)

      Increase (decrease) in liabilities:

           

          Accounts payable and accrued liabilities

   

18,626

   

(77,243)

          Deferred revenue

   

1,189

   

(5,900)

    Net cash provided by (used in) operating activities

   

(123,838)

   

89,032

Cash flows from investing activities

           

    Proceeds from sales of assets

   

12,156

   

78,521

    Capital expenditures

   

(62,774)

   

(55,326)

   Investments in and advances to/repayments from unconsolidated affiliates

   

674

   

(1,500)

   Cash distribution from unconsolidated affiliates and other

   

652

   

11,273

    Net cash provided by (used in) investing activities

   

(49,292)

   

32,968

Cash flows from financing activities

           

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

   

147,571

   

214,932

    Proceeds from revolving notes with maturities longer than 90 days

   

112,000

   

175,000

   Repayments of revolving notes with maturities longer than 90 days

   

(286,000)

   

-

Proceeds from issuance of notes payable

   

373,750

   

-

   Repayments of notes payable

   

(308,468)

   

(24,002)

Debt issuance costs

   

(14,067)

   

-

Repurchase of stock

   

(20,000)

   

-

    Dividends

   

(26,882)

   

(26,344)

   Investment by joint venture partner

   

7,000

   

-

    Cash distribution to joint venture partner

   

(24,055)

   

(36,152)

    Tax payments for net share settlement of restricted stock

   

(2,802)

   

(2,266)

    Net cash provided by (used in) financing activities

   

(41,953)

   

301,168

Effect of exchange rate changes

   

9,885

   

(17,693)

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

   

(205,198)

   

405,475

Cash and cash equivalents and restricted cash

           

    Beginning of period

   

842,087

   

338,487

    End of period

 

$

636,889

 

$

743,962

Balance Sheet Reconciliation

           

    Cash and cash equivalents

 

$

628,200

 

$

735,258

    Restricted cash

   

8,689

   

8,704

    Total cash and cash equivalents and restricted cash as presented above

 

$

636,889

 

$

743,962

 

THE GREENBRIER COMPANIES, INC.

Supplemental Backlog and Delivery Information

 
 

Three Months Ended

May 31, 2021

Backlog Activity (units) (1)

     

Beginning backlog

24,900

Orders received

3,800

Production held as Leased railcars for syndication

(800)

Production sold directly to third parties

(3,100)

Ending backlog

24,800

   

Delivery Information (units) (1)

 

Production sold directly to third parties

3,100

Sales of Leased railcars for syndication

200

Total deliveries

3,300

   

(1)      

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

Supplemental Leasing Information

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

GBX Leasing (GBXL) was formed in April 2021 as a joint venture with The Longwood Group to own and manage a portfolio of leased railcars primarily built by Greenbrier.  Greenbrier owns approximately 90% of GBXL and consolidates it in Greenbrier's financial statements in the Leasing & Services segment.  Longwood was formed in 2018 by D. Stephen Menzies to pursue a range of commercial investments in equipment transportation markets following his successful growth of Trinity Rail's leasing business over many years.  GBXL adds an additional "go to market" element to Greenbrier's Commercial strategy of direct sales, partnerships with operating leasing companies, origination of leases for syndication partners as well as providing a platform for further growth at scale.  GBXL will produce strong tax-advantaged cash flows.  The goal is to add at least $200 million in railcar assets annually at about 3:1 debt to equity (or 75%) based on the fair market value of assets.  During the quarter, an initial $300 million non-recourse warehouse credit facility was secured, and $129 million in fair market value of assets were acquired from Greenbrier's transaction flow.  Over time the entity is expected to grow by at least $200 million in assets annually with a five year target of $1 billion of assets.  The intent is to use the asset-backed securities market to refinance the warehouse facility and to convert to permanent financing before 2025 as scale and portfolio balance are achieved.  Considerable tax benefits are generated from these investments, which are included in the consolidated financial results this year.

Key information for the consolidated Leasing & Services segment

 

(In Units)

May 31,

2021

 

February 28,

2021

Owned fleet

8,700

 

8,700

Managed fleet

445,000

 

445,000

Owned fleet utilization

94%

 

95%

 

May 31,

2021

 

February 28,

2021

Equipment on operating lease

$                  446,888

 

$                  445,451

       

GBX Leasing non-recourse warehouse

$                    96,576

 

$                              -

Leasing non-recourse debt

202,815

 

204,722

Total Leasing non-recourse debt

$                  299,391

 

$                  204,722

       

Fleet leverage %(1)

67%

 

46%

   

(1)    

Total Leasing non-recourse debt / Equipment on operating lease

 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

 (In thousands, except per share amounts, unaudited)

 

Operating Results by Quarter for 2021 are as follows:

 
 

First

 

Second

 

Third

 

Total

 
                 

Revenue

               

   Manufacturing

$    308,722

 

$    202,094

 

$    341,939

 

$     852,755

 

   Wheels, Repair & Parts

65,556

 

71,623

 

80,871

 

218,050

 

   Leasing & Services

28,711

 

21,905

 

27,333

 

77,949

 
 

402,989

 

295,622

 

450,143

 

1,148,754

 

Cost of revenue

               

   Manufacturing

280,890

 

201,771

 

292,464

 

775,125

 

   Wheels, Repair & Parts

62,984

 

66,667

 

73,690

 

203,341

 

   Leasing & Services

18,444

 

9,513

 

8,857

 

36,814

 
 

362,318

 

277,951

 

375,011

 

1,015,280

 
                 

Margin

40,671

 

17,671

 

75,132

 

133,474

 
                 

Selling and administrative expense

43,707

 

43,425

 

49,239

 

136,371

 

Net (gain) loss on disposition of equipment

(922)

 

(27)

 

184

 

(765)

 

Earnings (loss) from operations

(2,114)

 

(25,727)

 

25,709

 

(2,132)

 
                 

Other costs

               

Interest and foreign exchange

11,103

 

9,568

 

10,204

 

30,875

 

Net loss on extinguishment of debt

-

 

-

 

4,763

 

4,763

 

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

(13,217)

 

(35,295)

 

10,742

 

(37,770)

 

Income tax benefit

7,332

 

21,752

 

6,914

 

35,998

 

Earnings (loss) before earnings (loss) from unconsolidated affiliates

(5,885)

 

(13,543)

 

17,656

 

(1,772)

 

Earnings (loss) from unconsolidated affiliates

(744)

 

(378)

 

2,379

 

1,257

 
                 

Net earnings (loss)

(6,629)

 

(13,921)

 

20,035

 

(515)

 

Net (earnings) loss attributable to noncontrolling interest

(3,343)

 

4,856

 

(298)

 

1,215

 
                 

Net earnings (loss) attributable to Greenbrier

$        (9,972)

 

$        (9,065)

 

$       19,737

 

$            700

 
                 

Basic earnings (loss) per common share (1)

$          (0.30)

 

$          (0.28)

 

$           0.61

 

$           0.02

 
                 

Diluted earnings (loss) per common share (1)

$          (0.30)

 

$          (0.28)

 

$           0.59

 

$           0.02

 
                 

Dividends per common share

$           0.27

 

$           0.27

 

$           0.27

 

$           0.81

 
   

(1)  

Quarterly amounts may not total to the year to date amount as each period is calculated discretely.

 

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 (loss) per common share (1)

$           0.24

 

$           0.42

 

$           0.85

 

$          (0.00)

 

$           1.50

 
                     

Diluted earnings (loss) 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.

 

 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

 (In thousands, unaudited)

 

Segment Information

 

Three months ended May 31, 2021:

                 
 

Revenue

 

Earnings (loss) from operations

 
 

External

 

Intersegment

 

  Total

 

External

 

Intersegment

 

Total

 

Manufacturing

$           341,939

 

$               7,451

 

$         349,390

 

$           31,341

 

$                  492

 

$       31,833

 

Wheels, Repair & Parts

80,871

 

2,292

 

83,163

 

4,173

 

75

 

4,248

 

Leasing & Services

27,333

 

2,286

 

29,619

 

12,280

 

2,272

 

14,552

 

Eliminations

-

 

(12,029)

 

(12,029)

 

-

 

(2,839)

 

(2,839)

 

Corporate

-

 

-

 

-

 

(22,085)

 

-

 

(22,085)

 
 

$           450,143

 

$                      -

 

$         450,143

 

$           25,709

 

$                      -

 

$      25,709

 
 

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)

 
           
 

Total assets

   
 

May 31,
2021

 

February 28,

2021

   

Manufacturing

$              1,413,590

 

$              1,313,819

   

Wheels, Repair & Parts

265,847

 

277,788

   

Leasing & Services

878,743

 

851,546

   

Unallocated, including cash

651,987

 

616,212

   
 

$              3,210,167

 

$              3,059,365

   

 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

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

 

Reconciliation of Net earnings (loss) to Adjusted EBITDA

 
     

Three Months Ended

   
     

May 31,

2021

 

February 28,

2021

   

Net earnings (loss)

$                 20,035

 

$              (13,921)

   

Interest and foreign exchange

10,204

 

9,568

   

Income tax benefit

(6,914)

 

(21,752)

   

Depreciation and amortization

24,769

 

24,822

   

Net loss on extinguishment of debt

4,763

 

-

   

Adjusted EBITDA

$                52,857

 

$                 (1,283)

   
             


 

Reconciliation of Net earnings (loss) attributable to Greenbrier to Adjusted net earnings (loss) attributable to Greenbrier

 
     

Three Months Ended

     

May 31,

2021

 

February 28, 2021

Net earnings (loss) attributable to Greenbrier

$                19,737

 

$                (9,065)

Net loss on extinguishment of debt, net of tax (1)

3,596

 

-

Adjusted net earnings (loss) attributable to                                                                      Greenbrier

$               23,333

 

$                (9,065)

   

(1)    

Net of tax of $1,167

 

Reconciliation of Diluted earnings (loss) per share to Adjusted diluted earnings (loss) per share

 
       

Three Months Ended

       

May 31,

2021

 

February 28, 2021

Diluted earnings (loss) per share

 

$                   0.59

 

$                  (0.28)

Net loss on extinguishment of debt, net of tax

 

0.10

 

-

Adjusted diluted earnings (loss) per share

 

$                   0.69

 

$                  (0.28)

 

Weighted average shares outstanding

 

33,605

 

32,810

 "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," "allow," "anticipate," "continue," "estimate" "expect," "goal," "intend," "maintain," "outlook," "position," "prepare," "reduce," "will," and similar expressions to identify forward-looking statements. These forward-looking statements include, without limitation, statements about backlog, leasing performance, financing, 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 sections titled "Third Quarter Highlights," "Business Update & Outlook" and "Supplemental Leasing Information." 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, variants thereof, and governmental reaction thereto, 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. We may not be able to effectively participate in the economic recovery following the pandemic, if any. 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 reports 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 Greenbrier Companies, Inc.

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