Media & Resources Press Releases Greenbrier Posts Solid First Quarter EPS of $0.35 on Revenue of $415 Million

Greenbrier Posts Solid First Quarter EPS of $0.35 on Revenue of $415 Million

LAKE OSWEGO, Ore., Jan. 9, 2013 /PRNewswire/ -- The Greenbrier Companies (NYSE: GBX) today reported results for its first fiscal quarter ended November 30, 2012.

First Quarter Highlights

  • Net earnings for the first quarter were $10.4 million, or $.35 per diluted share, on revenue of $415.4 million.
  • Adjusted EBITDA for the quarter was $31.8 million, or 7.6% of revenue.
  • New railcar deliveries were 2,900 units in the first quarter, a strong start to the year.
  • Since September 1, 2012, the beginning of the Company's fiscal year, Greenbrier has received orders for 4,200 new railcar units valued at over $430 million, of which 1,400 units were received during the quarter, and 2,800 units subsequent to quarter end.
  • Subsequent to quarter end, the Company received a multi-year award to perform repair and refurbishment work, with anticipated annual revenue of about $12 million.
  • Subsequent to quarter end, the Company received awards for two multi-year management services contracts, with anticipated annual revenue of $3.5 million when fully implemented in fiscal 2014.
  • New railcar manufacturing backlog as of November 30, 2012 was 9,700 units with an estimated value of $1.11 billion (average unit sale price of $114,000), compared to 10,700 units with an estimated value of $1.20 billion (average unit sale price of $112,000) as of August 31, 2012.
  • Marine backlog totaled 2 units valued at $20 million as of November 30, 2012; subsequent to quarter end, Greenbrier received awards for 2 additional units valued at less than $10 million. Additionally we are party to a letter of intent for 15 barges valued at $60 million, subject to permitting and other conditions.

William A. Furman, president and chief executive officer, said, "We are pleased with our solid quarterly results. Our visibility is growing as the result of major new orders. We expect financial momentum will continue to build sequentially throughout the year, in line with earlier guidance. In North America, we continue to ramp up our higher margin tank car production to capitalize on demand from the strong energy market and are sold out of tank car capacity through calendar 2014. We expect to be at an annual run rate of about 3,800 tank cars in North America by December 2013. At the same time, we are seeing more diversified demand for our products and services in each of the business segments, as well as among railcar types, including automotive, forest products and intermodal."

Furman continued, "Since September 1, 2012, the beginning of our fiscal year, we have received orders for 4,200 new railcar units in North America and Europe, of which 1,400 were automotive related, 1,250 were tank cars, with the balance including covered hopper cars, gondolas for scrap steel and other car types. With our flexible manufacturing footprint we can readily shift our capacity to railcar types in demand. Additionally, we have recently been awarded a major multi-year maintenance contract and two multi-year management services contracts."

Furman added, "Our four key focus areas for 2013 are: enhancing operating margins, expanding product and service offerings, increasing free cash flow, and business diversification and growth. We are confident that this focus coupled with our diverse product offerings, integrated business model, and flexible manufacturing footprint position us to continue to gain share, enhance margins, and to grow through the cycle. We believe we have a long runway ahead, in each of our business segments, to drive shareholder value."

Financial Summary

 

Q1 FY13

Q4 FY12

Sequential Comparison – Main Drivers

Revenue

$415.4M

$443.5M

Down 6.3% principally due to lower new railcar deliveries with a higher average sales price

Gross margin

11.5%

12.3%

Down 80 bps due to lower manufacturing margin, partially offset by higher margins in both other segments

Selling and

administrative

$26.1M

$27.6M

Down due to lower incentive compensation in Q1 and certain severance costs in Q4

Gain on disposition

of equipment

$1.4M

$0.07M

Timing of sales fluctuates and is opportunistic

Adjusted EBITDA

$31.8M

$36.0 M

Down principally due to lower deliveries and margin

Effective tax rate

26.7%

51.0%

Normalized rate in both periods is about 34%; difference from normalized rate is due to certain discrete tax items

Net earnings

$10.4M

$7.4M

Up due to lower tax rate in Q1

Diluted EPS – GAAP

$0.35

$0.26

"If converted" calculation

Economic EPS

$0.37

$0.27

Excludes "if converted" impact of out-of-the-money bonds due 2018

Segment Summary

 

Q1 FY13

Q4 FY12

Sequential Comparison – Main Drivers

Manufacturing

Revenue

$285.4M

$306.2M

Down 6.8% due to lower deliveries with a higher average sales price

Gross margin

9.4%

11.8%

Down 240 bps due to changes in certain production rates and

product mix

Deliveries

2,900

3,500

Down due change in product mix to higher labor content

units

Wheel Services, Refurbishment & Parts

Revenue

$112.1M

$119.1M

Down 5.9% due to lower wheel and part volumes

Gross margin

9.5%

8.1%

Up 140 bps due to better mix and improved efficiencies

Leasing & Services

Revenue

$17.9M

$18.3M

Down 2.2% due to lower interim rents

Gross margin

57.4%

47.6%

Up 980 bps due to reduction in certain maintenance

accruals

Lease fleet utilization

95.2%

93.5%

Up due to Q4 fleet additions placed in service in Q1

Business Outlook

Based on current business trends and industry forecasts, management currently anticipates the Company's new railcar deliveries in 2013 to be about 13,000 units. While deliveries are expected to be below the 15,000 deliveries for fiscal 2012, the Company anticipates the product mix will be more favorable and include railcars with higher average selling prices. Management anticipates that fiscal 2013 revenue, adjusted EBITDA and earnings per share will be similar to fiscal 2012, with the second half of the year being stronger than the first half of the year.

Certain orders and awards referenced in this release are subject to customary documentation and completion of terms.

 

Conference Call

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

  • January 9, 2013
  • 8:00 a.m. Pacific Standard Time
  • Phone: 1-630-395-0143, Password: "Greenbrier"
  • Real-time Audio Access: ("Newsroom" at http://www.gbrx.com)

Please access the site 10 minutes prior to the start time. Following the call, a webcast replay will be available for 30 days. Telephone replay will be available through January 26, 2013, at 203-369-0948.

About Greenbrier Companies

Greenbrier (www.gbrx.com), headquartered in Lake Oswego, Oregon, is a leading supplier of transportation equipment and services to the railroad industry. Greenbrier builds new railroad freight cars in its four manufacturing facilities in the U.S. and Mexico and marine barges at its U.S. facility. It also repairs and refurbishes freight cars and provides wheels and railcar parts at 39 locations across North America. Greenbrier builds new railroad freight cars and refurbishes freight cars for the European market through both its operations in Poland and various subcontractor facilities throughout Europe. Greenbrier owns approximately 10,000 railcars, and performs management services for approximately 221,000 railcars.

"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This presentation may contain forward-looking statements, including statements regarding expected new railcar production volumes and schedules, expected customer demand for the Company's products and services, plans to increase manufacturing capacity, new railcar delivery volumes and schedules, growth in demand for the Company's railcar services and parts business, and the Company's future financial performance. Greenbrier uses words such as "anticipates," "believes," "forecast," "potential," "goal," "contemplates," "expects," "intends," "plans," "projects," "hopes," "seeks," "estimates," "could," "would," "will," "may," "can," "designed to," "foreseeable future" and similar expressions to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to certain risks and uncertainties that could cause actual results to differ materially from in the results contemplated by the forward-looking statements. Factors that might cause such a difference include, but are not limited to, reported backlog is not indicative of our financial results; turmoil in the credit markets and financial services industry; high levels of indebtedness and compliance with the terms of our indebtedness; write-downs of goodwill, intangibles and other assets in future periods; sufficient availability of borrowing capacity; fluctuations in demand for newly manufactured railcars or failure to obtain orders as anticipated in developing forecasts; loss of one or more significant customers; customer payment defaults or related issues; actual future costs and the availability of materials and a trained workforce; failure to design or manufacture new products or technologies or to achieve certification or market acceptance of new products or technologies; steel or specialty component price fluctuations and availability and scrap surcharges; changes in product mix and the mix between segments; labor disputes, energy shortages or operating difficulties that might disrupt manufacturing operations or the flow of cargo; production difficulties and product delivery delays as a result of, among other matters, changing technologies, production of new railcar types, or non-performance of subcontractors or suppliers; ability to obtain suitable contracts for the sale of leased equipment and risks related to car hire and residual values; difficulties associated with governmental regulation, including environmental liabilities; integration of current or future acquisitions; succession planning; all as may be discussed in more detail under the headings "Risk Factors" and "Forward Looking Statements" in our Annual Report on Form 10-K for the fiscal year ended August 31, 2012, and our other reports on file with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date hereof. Except as otherwise required by law, we do not assume any obligation to update any forward-looking statements.

Adjusted EBITDA is not a financial measure under generally accepted accounting principles (GAAP). We define Adjusted EBITDA as earnings attributable to Greenbrier before interest and foreign exchange, income tax expense, depreciation and amortization. Adjusted EBITDA is a performance measurement tool commonly used by rail supply companies and Greenbrier. You should not consider Adjusted EBITDA in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because Adjusted EBITDA is not a measure of financial performance under GAAP and is susceptible to varying calculations, the Adjusted EBITDA measure presented may differ from and may not be comparable to similarly titled measures used by other companies.

Economic EPS is not a financial measure under GAAP. Economic EPS is used to measure the current economic impact of our Convertible Bonds due in 2018 that have a conversion strike price of $38.05/share, which exceeds our current stock price. We define Economic EPS as net earnings attributable to Greenbrier divided by the sum of weighted average basic common shares outstanding, plus the dilutive effect of warrants. This calculation excludes the dilutive effect of the shares underlying the 2018 bonds under the "if converted" method, which is included in the calculation of Diluted EPS. You should not consider Economic EPS in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because Economic EPS is not a measure of financial performance under GAAP and is susceptible to varying calculations, the Economic EPS measure presented may differ from and may not be comparable to similarly titled measures used by other companies.

 

THE GREENBRIER COMPANIES, INC.

Consolidated Balance Sheets

(In thousands, unaudited)

 
 

November 30, 2012

August 31, 2012

May 31,

2012

February 29, 2012

November 30, 2011

Assets

         

Cash and cash equivalents

$ 41,284

$ 53,571

$ 44,915

$ 40,666

$ 20,855

Restricted cash

7,322

6,277

6,089

2,249

2,151

Accounts receivable, net

163,385

146,326

172,086

177,544

149,559

Inventories

363,642

316,741

346,122

365,811

354,045

Leased railcars for syndication

54,297

97,798

66,776

79,681

68,029

Equipment on operating leases, net

362,522

362,968

334,872

322,811

323,878

Property, plant and equipment, net

186,715

182,429

172,729

165,700

159,671

Goodwill

137,066

137,066

137,066

137,066

137,066

Intangibles and other assets, net

79,500

81,368

84,693

85,155

84,187

 

$ 1,395,733

$ 1,384,544

$ 1,365,348

$ 1,376,683

$ 1,299,441

           

Liabilities and Equity

         

Revolving notes

$ 89,826

$ 60,755

$ 71,430

$ 101,446

$ 80,679

Accounts payable and accrued liabilities

282,925

329,508

323,977

340,328

311,519

Deferred income taxes

96,498

95,363

88,514

89,623

87,395

Deferred revenue

28,283

17,194

17,872

1,230

5,724

Notes payable

427,697

428,079

428,028

428,454

431,184

           

Total equity Greenbrier

447,080

431,777

418,161

399,788

368,528

Noncontrolling interest

23,424

21,868

17,366

15,814

14,412

Total equity

470,504

453,645

435,527

415,602

382,940

 

$ 1,395,733

$ 1,384,544

$ 1,365,348

$ 1,376,683

$ 1,299,441

 
 

THE GREENBRIER COMPANIES, INC.

 

Consolidated Statements of Income

(In thousands, except per share amounts, unaudited)

 
   

Three Months Ended

November 30,

 
   

2012

 

2011

 

Revenue

         

Manufacturing

 

$ 285,368

 

$ 262,656

 

Wheel Services, Refurbishment & Parts

 

112,100

 

117,749

 

Leasing & Services

 

17,906

 

17,794

 
   

415,374

 

398,199

 
           

Cost of revenue

         

Manufacturing

 

258,492

 

236,188

 

Wheel Services, Refurbishment & Parts

 

101,476

 

105,891

 

Leasing & Services

 

7,627

 

9,663

 
   

367,595

 

351,742

 
           

Margin

 

47,779

 

46,457

 
           

Selling and administrative

 

26,100

 

23,235

 

Gain on disposition of equipment

 

(1,408)

 

(3,658)

 

Earnings from operations

 

23,087

 

26,880

 
           

Other costs

         

Interest and foreign exchange

 

5,900

 

5,383

 

Earnings before income taxes and loss from unconsolidated affiliates

 

17,187

 

21,497

 
           

Income tax expense

 

(4,586)

 

(7,797)

 

Earnings before loss from unconsolidated affiliates

 

12,601

 

13,700

 
           

Loss from unconsolidated affiliates

 

(40)

 

(372)

 
           

Net earnings

 

12,561

 

13,328

 

Net (earnings) loss attributable to noncontrolling interest

 

(2,134)

 

1,189

 
           

Net earnings attributable to Greenbrier

 

$ 10,427

 

$ 14,517

 
           
           

Basic earnings per common share:

 

$ 0.38

 

$ 0.57

 
           

Diluted earnings per common share:

 

$ 0.35

 

$ 0.48

 
           

Weighted average common shares:

         

Basic

 

27,144

 

25,463

 

Diluted

 

33,991

 

33,389

 
 
 

THE GREENBRIER COMPANIES, INC.

 

Consolidated Statements of Cash Flows

(In thousands, unaudited)

 
   

Three Months Ended

November 30,

 
   

2012

 

2011

 

Cash flows from operating activities:

         

Net earnings

 

$ 12,561

 

$ 13,328

 

Adjustments to reconcile net earnings to net cash used in operating activities:

         

Deferred income taxes

 

940

 

3,665

 

Depreciation and amortization

 

10,923

 

9,889

 

Gain on sales of leased equipment

 

(1,408)

 

(3,658)

 

Accretion of debt discount

 

849

 

787

 

Stock based compensation expense

 

1,886

 

1,742

 

Other

 

(1,705)

 

2,024

 

Decrease (increase) in assets:

         

Accounts receivable

 

(15,515)

 

33,687

 

Inventories

 

(41,465)

 

(34,088)

 

Leased railcars for syndication

 

43,501

 

(37,339)

 

Other

 

945

 

856

 

Increase (decrease) in liabilities:

         

Accounts payable and accrued liabilities

 

(48,036)

 

260

 

Deferred revenue

 

11,039

 

(145)

 

Net cash used in operating activities

 

(25,485)

 

(8,992)

 

Cash flows from investing activities:

         

Proceeds from sales of equipment

 

10,086

 

5,741

 

Investment in and net advances from unconsolidated affiliates

 

(160)

 

70

 

Increase in restricted cash

 

(1,045)

 

(38)

 

Capital expenditures

 

(25,141)

 

(15,007)

 

Other

 

-

 

10

 

Net cash used in investing activities

 

(16,260)

 

(9,224)

 

Cash flows from financing activities:

         

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

 

27,935

 

(9,150)

 

Proceeds from revolving notes with maturities longer than 90 days

 

9,195

 

7,557

 

Repayments of revolving notes with maturities longer than 90 days

 

(8,941)

 

(5,606)

 

Proceeds from the issuance of notes payable

 

-

 

2,500

 

Repayments of notes payable

 

(1,230)

 

(1,243)

 

Investment by joint venture partner

 

1,182

 

-

 

Excess tax benefit from restricted stock awards

 

217

 

-

 

Net cash provided by (used in) financing activities

 

28,358

 

(5,942)

 
           

Effect of exchange rate changes

 

1,100

 

(5,209)

 
           

Decrease in cash and cash equivalents

 

(12,287)

 

(29,367)

 
           

Cash and cash equivalents

         

Beginning of period

 

53,571

 

50,222

 

End of period

 

$ 41,284

 

$ 20,855

 
           
 
 

THE GREENBRIER COMPANIES, INC.

 

Supplemental Information

Quarterly Results of Operations

(In thousands, except per share amounts, unaudited)

 
 

First

 

Second

 

Third

 

Fourth

 

Total

 

2012

                   

Revenue

                   

Manufacturing

$ 262,656

 

$ 320,206

 

$ 364,930

 

$ 306,172

 

$ 1,253,964

 

Wheel Services, Refurbishment & Parts

117,749

 

119,894

 

125,145

 

119,077

 

481,865

 

Leasing & Services

17,794

 

18,086

 

17,722

 

18,285

 

71,887

 
 

398,199

 

458,186

 

507,797

 

443,534

 

1,807,716

 

Cost of revenue

                   

Manufacturing

236,188

 

290,851

 

325,424

 

269,921

 

1,122,384

 

Wheel Services, Refurbishment & Parts

105,891

 

106,554

 

111,610

 

109,486

 

433,541

 

Leasing & Services

9,663

 

9,295

 

8,825

 

9,588

 

37,371

 
 

351,742

 

406,700

 

445,859

 

388,995

 

1,593,296

 
                     

Margin

46,457

 

51,486

 

61,938

 

54,539

 

214,420

 
                     

Selling and administrative

23,235

 

24,979

 

28,784

 

27,598

 

104,596

 

Gain on disposition of equipment

(3,658)

 

(2,654)

 

(2,585)

 

(67)

 

(8,964)

 

Earnings from operations

26,880

 

29,161

 

35,739

 

27,008

 

118,788

 
                     

Other costs

                   

Interest and foreign exchange

5,383

 

6,630

 

6,560

 

6,236

 

24,809

 

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

21,497

 

22,531

 

29,179

 

20,772

 

93,979

 
                     

Income tax expense

(7,797)

 

(5,348)

 

(8,655)

 

(10,593)

 

(32,393)

 
                     

Earnings (loss) from unconsolidated

affiliates

(372)

 

72

 

201

 

(317)

 

(416)

 

Net earnings

13,328

 

17,255

 

20,725

 

9,862

 

61,170

 

Net (earnings) loss attributable to Noncontrolling interest

1,189

 

415

 

(1,608)

 

(2,458)

 

(2,462)

 

Net earnings attributable to Greenbrier

$ 14,517

 

$ 17,670

 

$ 19,117

 

$ 7,404

 

$ 58,708

 
                     

Basic earnings per common share: (1)

$ 0.57

 

$ 0.66

 

$ 0.71

 

$ 0.27

 

$ 2.21

 

Diluted earnings per common share: (2)

$ 0.48

 

$ 0.57

 

$ 0.61

 

$ 0.26

 

$ 1.91

 
   

(1)

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

   

(2)

Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the outstanding warrants using the treasury stock method and the dilutive effect of shares underlying the 2018 Convertible Notes using the "if converted" method in which debt issuance and interest costs, net of tax, were added back to net earnings.

 
 

THE GREENBRIER COMPANIES, INC.

 

Supplemental Information

Reconciliation of Net Earnings attributable to Greenbrier to Adjusted EBITDA (1)

(In thousands, unaudited)

 
     

Three Months Ended

November 30,

 

Three Months Ended

August 31,

     

2012

 

2011

 

2012

Net earnings attributable to Greenbrier

$ 10,427

 

$ 14,517

 

$ 7,404

Interest and foreign exchange

5,900

 

5,383

 

6,236

Income tax expense

4,586

 

7,797

 

10,593

Depreciation and amortization

10,923

 

9,889

 

11,768

                     

Adjusted EBITDA

$ 31,836

 

$ 37,586

 

$ 36,001

                   
                       

(1)

AdjustedEBITDA is not a financial measure under generally accepted accounting principles (GAAP). We define Adjusted EBITDA as earnings attributable to Greenbrier before interest and foreign exchange, income tax expense, depreciation and amortization. Adjusted EBITDA is a performance measurement tool commonly used by rail supply companies and Greenbrier. You should not consider Adjusted EBITDA in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because Adjusted EBITDA is not a measure of financial performance under GAAP and is susceptible to varying calculations, the Adjusted EBITDA measure presented may differ from and may not be comparable to similarly titled measures used by other companies.

 
 
     

Three Months Ended November 30, 2012

   

Backlog Activity (units)

         

Beginning backlog

10,700

   

Orders received

1,400

   

Production held as Leased railcars for syndication

(200)

   

Production sold directly to third parties

(2,200)

   

Ending backlog

9,700

   
       

Delivery Information (units)

     

Production sold directly to third parties

2,200

   

Sales of Leased railcars for syndication

700

   

Total deliveries

2,900

   
       
 
 

THE GREENBRIER COMPANIES, INC.

 

Supplemental Information

Calculation of Diluted Earnings Per Share

(In thousands, except per share amounts, unaudited)

 

The shares used in the computation of the Company's basic and diluted earnings per common share are reconciled as follows:

 
 

Three Months Ended

November 30,

 

Three Months Ended

August 31,

   

2012

 

2011

 

2012

 

Weighted average basic common shares outstanding (1)

27,144

 

25,463

 

27,148

 

Dilutive effect of warrants

802

 

1,881

 

756

 

Dilutive effect of convertible notes (2)

6,045

 

6,045

 

6,045

 

Weighted average diluted common shares outstanding

33,991

 

33,389

 

33,949

             
 

(1)

Restricted stock grants are treated as outstanding when issued and are included in weighted average basic common shares outstanding when the Company is in a net earnings position.

 

(2)

The dilutive effect of the 2018 Convertible notes are included as they were considered dilutive under the "if converted" method as further discussed below. The dilutive effect of the 2026 Convertible notes was excluded from the share calculations as the stock price for each period presented was less than the initial conversion price of $48.05 and therefore considered anti-dilutive.

     

Dilutive EPS was calculated using the more dilutive of two approaches. The first approach includes the dilutive effect of outstanding warrants and shares underlying the 2026 Convertible notes in the share count using the treasury stock method. The second approach supplements the first by including the "if converted" effect of the 2018 Convertible notes issued in March 2011. Under the "if converted method" debt issuance and interest costs, both net of tax, associated with the convertible notes are added back to net earnings and the share count is increased by the shares underlying the convertible notes. The 2026 Convertible notes would only be included in the calculation of both approaches if the current stock price is greater than the initial conversion price of $48.05 using the treasury stock method.

 

Three Months Ended

November 30,

 

Three Months Ended

August 31,

   

2012

 

2011

 

2012

 

Net earnings attributable to Greenbrier

$ 10,427

 

$ 14,517

 

$ 7,404

 

Add back:

             
 

Interest and debt issuance costs on the

2018 Convertible notes, net of tax

1,430

 

1,376

 

1,416

 

Earnings before interest and debt issuance costs on convertible notes

$ 11,857

 

$ 15,893

 

$ 8,820

                 
 

Weighted average diluted common shares outstanding

33,991

 

33,389

 

33,949

                 
 

Diluted earnings per share (1)

$ 0.35

 

$ 0.48

 

$ 0.26

                 
                 
 

(1) Diluted earnings per share was calculated as follows:

                 
 

Earnings before interest and debt issuance costs on convertible notes

 

Weighted average diluted common shares outstanding

 
 

THE GREENBRIER COMPANIES, INC.

 

Supplemental Information

Reconciliation of Basic Earnings Per Share to Economic Earnings Per Share (1)

(In thousands, except per share amounts, unaudited)

 
 

The shares used in the computation of the Company's basic and economic earnings per common share are reconciled as follows:

 
 

Three Months Ended

November 30,

 

Three Months Ended

August 31,

 
 

2012

 

2011

 

2012

 

Weighted average basic common shares outstanding

27,144

 

25,463

 

27,148

 

Dilutive effect of warrants

802

 

1,881

 

756

 

Weighted average economic diluted

common shares outstanding

27,946

 

27,344

 

27,904

 
             

Net earnings attributable to Greenbrier

$ 10,427

 

$ 14,517

 

$ 7,404

 
             

Economic earnings per share

$ 0.37

 

$ 0.53

 

$ 0.27

 
             

(1) Economic EPS is not a financial measure under GAAP. Economic EPS is used to measure the current economic impact of our Convertible Bonds due in 2018 that have a conversion strike price of $38.05/share, which exceeds our current stock price. We define Economic EPS as net earnings attributable to Greenbrier divided by the sum of weighted average basic common shares outstanding, plus the dilutive effect of warrants. This calculation excludes the dilutive effect of the shares underlying the 2018 bonds under the "if converted" method, which is included in the calculation of Diluted EPS. You should not consider Economic EPS in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because Economic EPS is not a measure of financial performance under GAAP and is susceptible to varying calculations, the Economic EPS measure presented may differ from and may not be comparable to similarly titled measures used by other companies.

 

SOURCE The Greenbrier Companies, Inc. (GBX)