Media & Resources Press Releases Greenbrier Reports First Quarter 2014 Results; Margin Expansion Continues, Led by Manufacturing

Greenbrier Reports First Quarter 2014 Results; Margin Expansion Continues, Led by Manufacturing

LAKE OSWEGO, Ore., Jan. 8, 2014 /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE: GBX) today reported financial results for its first fiscal quarter ended November 30, 2013.

First Quarter Highlights                                                                                                         

  • Net earnings for the quarter were $16.0 million, or $0.51 per diluted share, excluding restructuring charges (net of tax) of $0.6 million, on revenue of $490.4 million.  "Economic" EPS was $0.56, which excludes restructuring charges and the impact of out-of-the-money shares underlying our 3.5% convertible bonds.
  • Net earnings attributable to Greenbrier for the quarter, which includes restructuring charges, were $15.4 million, or $0.49 per diluted share.
  • Adjusted EBITDA for the quarter was $50.0 million, or 10.2% of revenue.
  • New railcar backlog as of November 30, 2013 was 13,500 units with an estimated value of $1.43 billion (average unit sale price of $106,000) compared to 14,400 units with an estimated value of $1.52 billion (average unit sale price of $106,000) on August 31, 2013.
  • New railcar deliveries totaled 3,700 units for the quarter, compared to 3,500 units for the quarter ended August 31, 2013.
  • Received orders for 2,500 new railcars valued at $230 million during the quarter. Subsequent to quarter end, Greenbrier received orders for another 1,100 units valued at approximately $130 million.
  • To date, repurchased 110,400 shares of common stock at a cost of $3.4 million, under a $50 million share repurchase program.

Progress on Strategic Initiatives

 

  • To date, closed or sold six underperforming or non-core facilities in the Wheels, Repair & Parts segment; one additional shop to be closed by the end of January 2014. Restructuring and realignment continues in this business segment.
  • Improved gross margin for the quarter to 12.6%, more than halfway to fourth quarter 2014 minimum goal of a 200 basis point improvement to at least 13.5% gross margin.
  • Substantially met $100 million minimum capital efficiency goal originally scheduled to be met by February 2014.  Net debt reduced by $90 million since February 28, 2013; management continues to focus on capital liberation.

William A. Furman, president and chief executive officer, said, "We continue to gain momentum from our strong finish to fiscal 2013, with sustained performance by Manufacturing, our largest segment, leading the way.  With gross margin of 13.4%, an expansion of 110 basis points over the previous quarter, Manufacturing is meeting higher expectations set for fiscal 2014.   Leasing & Services is also meeting expectations.  We continue to refine our leasing model, including a reduction in the permanent capital invested in this business.  Wheels, Repair & Parts produced disappointing financial results, but within the results are solid improvements at a number of locations, and about $2 million of costs that adversely affected margin, which we do not expect to recur in the future."

"Our diversified product offerings create superior value.  Currently, less than 50% of our backlog is in tank cars, with the balance in a variety of railcar types.  Demand for our comprehensive line of automotive carrying railcars remains robust.  In the energy markets, increasing demand for sand used in fracking techniques to extract difficult-to-access oil and gas is leading to growing sales of our small cube covered hopper cars.  We still see strong demand for tank cars.   Market conditions in Europe are improving, and order activity for our European operations has picked up after a long period of softer demand in the region."

"We anticipate that new repair work, particularly in tank cars, will have a positive impact on our Wheels, Repair & Parts segment.  We are progressing on necessary changes in our shop network and operations to improve performance, and expect to have better financial results in the quarters ahead."

"Consistent with our strategy to reduce permanent capital invested in Leasing & Services, we continue to sell lease fleet assets for positive returns, while maintaining syndication and asset management revenues.  Our managed fleet grew by 7,000 units during the quarter.  We continue to enter into comprehensive management and maintenance solutions with our customers, an area of increasing opportunity for the Company."

"Overall, rail fundamentals are solid.  We are confident that Greenbrier is well-positioned to take advantage of a number of established and emerging opportunities, as well as to achieve our margin enhancement and capital liberation goals.  We expect our business will expand across all segments, and to realize operating leverage and growth in ROIC.  The $50 million stock repurchase program initiated during the first quarter is another significant step to enhance shareholder value," concluded Furman.

Business Outlook

Based on current business trends and industry forecasts, in fiscal 2014 Greenbrier continues to believe its:

  • Deliveries will exceed 15,000 units
  • Revenue will exceed $2 billion
  • EPS, excluding restructuring charges, will be in the range of $2.45 to $2.70

As disclosed previously, financial results in the second half of the year are expected to be stronger than the first half. Also, while gross margin is expected to increase overall, management does not believe its track will be linear.

 

 

Financial Summary

 
 

Q1 FY14

Q4 FY13

Sequential Comparison – Main Drivers

Revenue

$490.4M

$484.2M

Up 1.3% due to increased deliveries and Manufacturing revenue, partially offset by lower revenues in Wheels, Repair & Parts

Gross margin

12.6%

12.5%

Up 10 bps attributable to Manufacturing operating efficiencies, favorable product mix, and lease syndications, partially offset by lower margins in Wheels, Repair & Parts

SG&A

$26.1M

$26.8M

 

Gain on disposition

of equipment

$3.7M

$8.5M

Timing of sales fluctuates and is opportunistic; typically ranges from $1.0M - $5.0M per quarter

Restructuring charges

$0.9M

$2.7M

Related to the Wheels, Repair & Parts segment

Adjusted EBITDA (1)

$50.0M

$52.1M

Down due to timing of disposition of leased equipment

Effective tax rate

31.4%

34.5%

Reflects geographic mix of earnings

Net earnings (1)

$16.0M

$22.5M

Down due to lower gains on sale and higher earnings attributable to noncontrolling interest

Diluted EPS (1)

$0.51

$0.6

Lower net earnings

Economic EPS (1)

$0.56

$0.79

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

   

 (1)

Excluding restructuring charges.

 

 

Segment Summary

 
 

Q1 FY14

Q4 FY13

Sequential Comparison – Main Drivers

Manufacturing

  Revenue

$359.5M

$351.7M

Up 2.2% due to increased deliveries

  Gross margin

13.4%

12.3%

Up 110 bps due to improved operating efficiencies, favorable product mix, and strong syndication activity

  Operating margin (2)

10.7%

8.6%

 

  Deliveries

3,700

3,500

Strong demand across multiple car types

Wheels, Repair & Parts

  Revenue

$113.4M

$114.0M

Down 0.5% due to mix of work and lower Repair revenue

  Gross margin

4.8%

6.7%

Down 190 bps due to operational inefficiencies in Repair and $2 million in various costs not expected to recur

  Operating margin (2) (3)

(0.3)%

(0.1)%

 

Leasing & Services

  Revenue

$17.5M

$18.5M

Down 5.4% due to lower interim rents

  Gross margin

46.3%

50.7%

Down 440 bps due primarily to lower interim rents

  Operating margin (2) (4)

49.6%

82.5%

 

  Lease fleet utilization

97.0%

97.4%

 
   

(2)

See supplemental segment information on page 11 for additional information.

   

(3)

Includes restructuring charges of $0.9 million in Q1 2014 and $2.7 million in Q4 2013.

   

(4)

Operating margin includes Gains on disposition of equipment, which is excluded from gross margin.

Conference Call

Greenbrier will host a teleconference to discuss its first quarter 2014 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website.  Teleconference details are as follows:

  • January 8, 2014
  • 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, 2014, at 203-369-3048.

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 35 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 8,300 railcars, and performs management services for approximately 231,000 railcars.

 "SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:  This press release 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, restructuring plans, 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, 2013, 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.

Net earnings excluding restructuring charges, Adjusted EBITDA, and Diluted earnings per share excluding restructuring charges are not financial measures under generally accepted accounting principles (GAAP). We define Net earnings excluding restructuring charges as Net earnings before restructuring charges (after-tax). We define Adjusted EBITDA as Net earnings attributable to Greenbrier before interest and foreign exchange, income tax expense, restructuring charges and depreciation and amortization. We define Diluted earnings per share excluding restructuring charges as Net earnings excluding restructuring charges before interest and debt issuance costs (net of tax) on convertible notes divided by Weighted average diluted common shares outstanding.  Net earnings excluding restructuring charges, Adjusted EBITDA, and Diluted earnings per share excluding restructuring charges are performance measurement tools used by Greenbrier. You should not consider Net earnings excluding restructuring charges, Adjusted EBITDA, and Diluted earnings per share excluding restructuring charges in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because Adjusted EBITDA and Diluted earnings per share excluding restructuring charges are not measures of financial performance under GAAP and are susceptible to varying calculations, the Adjusted EBITDA and Diluted earnings per share excluding restructuring charges measures 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, 2013

August 31,

2013

May 31,

2013

February

28, 2013

November

30, 2012

Assets

         

   Cash and cash equivalents

$          81,226

$       97,435

$       31,606

$       55,637

$       41,284

   Restricted cash

8,975

8,807

8,906

8,899

7,322

   Accounts receivable, net 

174,745

154,848

162,352

144,933

163,385

   Inventories

328,235

316,783

344,168

359,281

363,642

   Leased railcars for syndication

61,282

68,480

71,091

36,198

54,297

   Equipment on operating leases, net

293,291

305,468

332,924

344,576

362,522

   Property, plant and equipment, net

201,353

201,533

197,779

194,887

186,715

   Goodwill

57,416

57,416

57,416

134,316

137,066

   Intangibles and other assets, net

76,055

78,971

79,364

86,194

79,500

 

$      1,282,578

$  1,289,741

$  1,285,606

$  1,364,921

$  1,395,733

           

Liabilities and Equity

         

   Revolving notes

$           38,805

$       48,209

$       92,968

$       50,058

$       89,826

   Accounts payable and accrued liabilities

293,041

315,938

286,964

278,221

282,925

   Deferred income taxes

86,501

86,040

86,229

99,965

96,498

   Deferred revenue

8,706

8,838

16,203

23,178

28,283

   Notes payable

372,666

373,889

372,942

427,553

427,697

           

   Total equity - Greenbrier

447,599

428,202

404,707

461,136

447,080

   Noncontrolling interest

35,260

28,625

25,593

24,810

23,424

   Total equity

482,859

456,827

430,300

485,946

470,504

 

$      1,282,578

$  1,289,741

$  1,285,606

$  1,364,921

$  1,395,733

 

 

 

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Operations

(In thousands, except per share amounts, unaudited)

 
   

Three Months Ended

November 30,

   

2013

 

2012

 

Revenue

         

        Manufacturing

 

$              359,473

 

$           285,368

 

        Wheels, Repair & Parts

 

113,401

 

112,100

 

        Leasing & Services

 

17,481

 

17,906

 
   

490,355

 

415,374

 

Cost of revenue

         

        Manufacturing

 

311,440

 

258,492

 

        Wheels, Repair & Parts

 

107,975

 

101,476

 

        Leasing & Services

 

9,381

 

7,627

 
   

428,796

 

367,595

 
           

Margin

 

61,559

 

47,779

 
           

Selling and administrative expense

 

26,109

 

26,100

 

Net gain on disposition of equipment

 

(3,651)

 

(1,408)

 

Restructuring charges

 

879

 

-

 

Earnings from operations

 

38,222

 

23,087

 
           

Other costs

         

        Interest and foreign exchange

 

4,744

 

5,900

 

Earnings before income tax and earnings (loss) from

   unconsolidated affiliates

 

33,478

 

17,187

 

Income tax expense

 

(10,522)

 

(4,586)

 

Earnings before earnings (loss) from

   unconsolidated affiliates

 

22,956

 

12,601

 

Earnings (loss) from unconsolidated affiliates

 

41

 

(40)

 

Net earnings

 

22,997

 

12,561

 

Net earnings attributable to noncontrolling interest

 

(7,609)

 

(2,134)

 
           

Net earnings attributable to Greenbrier

 

$             15,388

 

$                 10,427

 
           

Basic earnings per common share:

 

$                 0.54

 

$                    0.38

 
           

Diluted earnings per common share:

 

$                 0.49

 

$                    0.35

 
           

Weighted average common shares:

         

        Basic

 

28,417

 

27,144

 

        Diluted

 

34,462

 

33,991

 
           
 

 

 

 

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Cash Flows

(In thousands, unaudited)

 
   

Three Months Ended

November 30,

 
   

2013

 

2012

 

Cash flows from operating activities:

         

    Net earnings

 

$             22,997

 

$             12,561

 

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

         

      Deferred income taxes

 

286

 

940

 

      Depreciation and amortization

 

10,897

 

10,923

 

      Net gain on disposition of equipment

 

(3,651)

 

(1,408)

 

      Accretion of debt discount

 

-

 

849

 

      Stock based compensation expense

 

1,359

 

1,886

 

      Other

 

527

 

(1,705)

 

      Decrease (increase) in assets:

         

          Accounts receivable

 

(19,305)

 

(15,515)

 

          Inventories

 

(13,178)

 

(41,465)

 

          Leased railcars for syndication

 

9,853

 

43,501

 

          Other

 

2,069

 

945

 

    Increase (decrease) in liabilities:

         

          Accounts payable and accrued liabilities

 

(25,137)

 

(48,036)

 

          Deferred revenue

 

(172)

 

11,039

 

    Net cash used in operating activities

 

(13,455)

 

(25,485)

 

Cash flows from investing activities:

         

    Proceeds from sales of assets

 

14,051

 

10,086

 

    Capital expenditures

 

(6,542)

 

(25,141)

 

    Increase in restricted cash

 

(168)

 

(1,045)

 

    Investment in and net advances to unconsolidated affiliates

 

(1,253)

 

(160)

 

    Net cash provided by (used in) investing activities

 

6,088

 

(16,260)

 

Cash flows from financing activities:

         

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

 

-

 

27,935

 

    Proceeds from revolving notes with maturities longer than 90 days

 

7,474

 

9,195

 

    Repayments of revolving notes with maturities longer than 90 days

 

(16,878)

 

(8,941)

 

    Repayments of notes payable

 

(1,223)

 

(1,230)

 

    Investment by joint venture partner

 

419

 

1,182

 

    Repurchase of stock

 

(871)

 

-

 

    Excess tax benefit from restricted stock awards

 

152

 

217

 

    Net cash provided by (used in) financing activities

 

(10,927)

 

28,358

 

Effect of exchange rate changes

 

2,085

 

1,100

 

Decrease in cash and cash equivalents

 

(16,209)

 

(12,287)

 

Cash and cash equivalents

         

    Beginning of period

 

97,435

 

53,571

 

    End of period

 

$             81,226

 

$             41,284

 
 

 

 

 

 
 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

(In thousands, except per share amounts, unaudited)

 

Operating Results by Quarter for 2013 are as follows:

 
 

First

 

Second

 

Third

 

Fourth

 

Total

 
                     

Revenue

                   

   Manufacturing

$    285,368

 

$    294,047

 

$   284,591

 

$   351,728

 

$ 1,215,734

 

   Wheels, Repair & Parts

112,100

 

111,952

 

131,167

 

114,003

 

469,222

 

   Leasing & Services

17,906

 

17,167

 

17,905

 

18,484

 

71,462

 
 

415,374

 

423,166

 

433,663

 

484,215

 

1,756,418

 

Cost of revenue

                   

   Manufacturing

258,492

 

262,650

 

253,360

 

308,387

 

1,082,889

 

   Wheels, Repair & Parts

101,476

 

103,134

 

120,476

 

106,415

 

431,501

 

   Leasing & Services

7,627

 

9,107

 

9,808

 

9,113

 

35,655

 
 

367,595

 

374,891

 

383,644

 

423,915

 

1,550,045

 
                     

Margin

47,779

 

48,275

 

50,019

 

60,300

 

206,373

 
                     

Selling and administrative

26,100

 

24,942

 

25,322

 

26,811

 

103,175

 

Net gain on disposition of equipment

(1,408)

 

(3,076)

 

(5,131)

 

(8,457)

 

(18,072)

 

Goodwill impairment

-

 

-

 

76,900

 

-

 

76,900

 

Restructuring charges

-

 

-

 

-

 

2,719

 

2,719

 

Earnings (loss) from operations

23,087

 

26,409

 

(47,072)

 

39,227

 

41,651

 
                     

Other costs

                   

   Interest and foreign exchange

5,900

 

6,322

 

5,905

 

4,031

 

22,158

 

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

 

17,187

 

 

20,087

 

 

(52,977)

 

 

35,196

 

 

19,493

 
                     

Income tax expense

(4,586)

 

(5,590)

 

(2,729)

 

(12,155)

 

(25,060)

 
                     

Earnings (loss) from unconsolidated affiliates

(40)

 

(105)

 

82

 

249

 

186

 

Net earnings (loss)

12,561

 

14,392

 

(55,624)

 

23,290

 

(5,381)

 

Net earnings attributable to

   noncontrolling interest

 

(2,134)

 

 

(553)

 

 

(406)

 

 

(2,574)

 

 

(5,667)

 

Net earnings (loss) attributable to Greenbrier

$      10,427

 

$      13,839

 

$   (56,030)

 

$        20,716

 

$     (11,048)

 
                     

Basic earnings (loss) per common share: (1)

$         0.38

 

$         0.51

 

$       (2.10)

 

$            0.74

 

$         (0.41)

 

Diluted earnings (loss) per common share: (2)

$         0.35

 

$         0.45

 

$       (2.10)

 

$            0.64

 

$         (0.41)

 
   

(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. For the first, second and fourth quarters, 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

(In thousands, unaudited)

 

Segment Information

 

Three months ended November 30, 2013

 

Revenue

 

Earnings (loss) from operations

 
 

External

 

Intersegment

 

Total

 

External

 

Intersegment

 

Total

 

Manufacturing

$     359,473

 

$                  -

 

$    359,473

 

$     38,314

 

$               -

 

$ 38,314

 

Wheels, Repair & Parts

113,401

 

1,653

 

115,054

 

(374)

 

31

 

(343)

 

Leasing & Services

17,481

 

2,869

 

20,350

 

8,670

 

2,869

 

11,539

 

Eliminations

-

 

(4,522)

 

(4,522)

 

-

 

(2,900)

 

(2,900)

 

Corporate

-

 

-

 

-

 

(8,388)

 

-

 

(8,388)

 
 

$     490,355

 

$                   -

 

$    490,355

 

$     38,222

 

$                -

 

$ 38,222

 

 

Three months ended November 30, 2012

                 
 

Revenue

 

Earnings (loss) from operations

 
 

External

 

Intersegment

 

Total

 

External

 

Intersegment

 

Total

 

Manufacturing

$     285,368

 

$          6,949

 

$    292,317

 

$     15,502

 

$             (45)

 

$   15,457

 

Wheels, Repair & Parts

112,100

 

5,386

 

117,486

 

6,137

 

(63)

 

6,074

 

Leasing & Services

17,906

 

4,392

 

22,298

 

8,701

 

4,392

 

13,093

 

Eliminations

-

 

(16,727)

 

(16,727)

 

-

 

(4,284)

 

(4,284)

 

Corporate

-

 

-

 

-

 

(7,253)

 

-

 

(7,253)

 
 

$     415,374

 

$                  -

 

$    415,374

 

$    23,087

 

$                 -

 

$   23,087

 

 

 

Total assets

 
 

November 30,

 

August 31,

 
 

2013

 

2013

 

Manufacturing

$       461,096

 

$     401,630

 

Wheels, Repair & Parts

304,249

 

318,483

 

Leasing & Services

427,023

 

463,381

 

Unallocated

90,210

 

106,247

 
 

$    1,282,578

 

$  1,289,741

 

 

 

 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

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

Reconciliation of Net earnings to Adjusted EBITDA

 
     

Three Months Ended

   
     

November 30, 2013

 

August 31, 2013

   

Net earnings

$         22,997

 

$          23,290

   

Interest and foreign exchange

4,744

 

4,031

   

Income tax expense

10,522

 

12,155

   

Depreciation and amortization

10,897

 

9,924

   

Restructuring charges

879

 

2,719

   
     

23,290

       

Adjusted EBITDA

$         50,039

 

$          52,119

   
             
   

(1)

Adjusted EBITDA is not a financial measure under generally accepted accounting principles (GAAP).  We define Adjusted EBITDA as Net earnings before interest and foreign exchange, income tax expense, restructuring charges, 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, 2013

 

Backlog Activity (units)

       

Beginning backlog

14,400

 

Orders received

2,500

 

Production held as Leased railcars for syndication

(100)

 

Production sold directly to third parties

(3,300)

 

Ending backlog

13,500

 
     

Delivery Information (units)

   

Production sold directly to third parties

3,300

 

Sales of Leased railcars for syndication

400

 

Total deliveries

3,700

 

 

 

 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

(In thousands, except per share amounts, unaudited)

 

Reconciliation of common shares outstanding and diluted earnings per share

 

 

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

 
 

Three Months Ended

   

November 30,

2013

 

August 31,

2013

 

Weighted average basic common shares outstanding (1)

28,417

 

28,062

 

Dilutive effect of warrants

-

 

366

 

Dilutive effect of convertible notes (2)

6,045

 

6,045

 

Weighted average diluted common shares outstanding

34,462

 

34,473

         
         

(1)

Restricted stock grants and restricted stock units, including some grants subject to certain performance criteria, are included in Weighted average basic common shares outstanding when the Company is in a net earnings position.

   

(2)

The dilutive effect of the 2018 Convertible notes are included in the Weighted average diluted common shares outstanding as they were considered dilutive under the "if converted" method as further discussed below. 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.

Diluted earnings per share 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.

Reconciliation of Net earnings attributable to Greenbrier to Net earnings excluding restructuring charges

 
 

Three Months Ended

 
 

November 30,

2013

 

August 31,

2013

 

Net earnings attributable to Greenbrier

$        15,388

 

$           20,716

 

Restructuring charges (after-tax)

603

 

1,781

 

Net earnings excluding restructuring charges (1)

15,991

 

22,497

 

Add back:

       

Interest and debt issuance costs on the 2018 Convertible 

     notes, net of tax

 

1,416

 

 

1,416

 

Earnings before interest and debt issuance costs on

     convertible notes

 

$         17,407

 

 

$           23,913

 
         

Weighted average diluted common shares outstanding

34,462

 

34,473

 
         

Diluted earnings per share excluding restructuring charges (2)

$             0.51

 

$              0.69

 
   

(1)

Net earnings excluding restructuring charges is not a financial measure under GAAP. We define Net earnings excluding restructuring charges as Net earnings attributable to Greenbrier before restructuring charges (after-tax). Net earnings excluding restructuring charges is a performance measurement tool used by Greenbrier. You should not consider Net earnings excluding restructuring charges in isolation or as a substitute for other financial statement data determined in accordance with GAAP. 

   

(2)

Diluted earnings per share excluding restructuring charges is not a financial measure under GAAP. We define Diluted earnings per share excluding restructuring charges as Net earnings excluding restructuring charges before interest and debt issuance costs (net of tax) on convertible notes divided by Weighted average diluted common shares outstanding. Diluted earnings per share excluding restructuring charges is a performance measurement tool used by Greenbrier. You should not consider Diluted earnings per share excluding restructuring charges in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because Diluted earnings per share excluding restructuring charges is not a measure of financial performance under GAAP and is susceptible to varying calculations, the Diluted earnings per share excluding restructuring charges measure presented may differ from and may not be comparable to similarly titled measures used by other companies.

 

 

 

THE GREENBRIER COMPANIES, INC.

 

Supplemental Information

(In thousands, except per share amounts, unaudited)

 

Reconciliation of basic earnings per share to economic earnings per share excluding restructuring charges

 

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

 

 
 

Three Months Ended

 
 

November 30,

2013

 

August 31,

2013

 

Weighted average basic common shares outstanding

28,417

 

28,062

 

Dilutive effect of warrants

-

 

366

 

Weighted average economic diluted common shares outstanding

28,417

 

28,428

 
         

Net earnings excluding restructuring charges

$    15,991

 

$       22,497

 
         

Economic earnings per share excluding restructuring charges (1)

$        0.56

 

$           0.79

 
         
   

(1)

Economic earnings per share excluding restructuring charges is not a financial measure under GAAP. Economic earnings per share excluding restructuring charges 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 earnings per share excluding restructuring charges as Net earnings excluding restructuring charges divided by Weighted average basic common shares outstanding, including 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 earnings per share excluding restructuring charges. You should not consider Economic earnings per share excluding restructuring charges in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because Economic earnings per share excluding restructuring charges is not a measure of financial performance under GAAP and is susceptible to varying calculations, the Economic earnings per share excluding restructuring charges measure presented may differ from and may not be comparable to similarly titled measures used by other companies.

 

 

 

SOURCE The Greenbrier Companies, Inc. (GBX)