Media & Resources Press Releases Greenbrier Reports Record Fourth Quarter Results

Greenbrier Reports Record Fourth Quarter Results

LAKE OSWEGO, Ore., Oct. 30, 2015 /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE: GBX) today reported financial results for its fourth fiscal quarter and full year ended August 31, 2015.

Fourth Quarter Highlights

  • Net earnings attributable to Greenbrier for the quarter were a record $66.9 million, or $2.02 per diluted share, on record revenue of $765.5 million
  • Adjusted EBITDA for the quarter was a record $147.6 million, or 19.3% of revenue.
  • New railcar backlog as of August 31, 2015 was 41,300 units with an estimated value of $4.71 billion (average unit sale price of $114,000), compared to 45,100 units with an estimated value of $4.86 billion (average unit sale price of $108,000) as of May 31, 2015.  
  • Diversified orders for 2,900 new railcars valued at $470 million were received during the quarter.
  • New railcar deliveries totaled 6,200 units for the quarter, compared to 5,700 units for the quarter ended May 31, 2015.
  • Marine backlog as of August 31, 2015 was approximately $52 million.
  • Quarterly dividend increases 33% to $0.20 per share, payable on December 2, 2015 to shareholders of record as of November 11, 2015.
  • Repurchased 495,952 shares of common stock at a cost of $21.8 million during the quarter, and an additional 490,123 shares at a cost of $17.8 million subsequent to August 31, 2015.
  • Nearly $145 million of capital returned to shareholders through dividends and share repurchases since October 2013.
  • Board authorizes $100 million increase to share repurchase program, bringing cumulative repurchase authorizations to $225 million since October 31, 2013.

Fiscal Year 2015 Highlights

  • Record net earnings were $192.8 million, or $5.93 per diluted share, on revenue of $2.61 billion.
  • Adjusted EBITDA was a record $433.8 million or 16.7% of revenue.
  • Achieved Return on Invested Capital (ROIC) of 23.7%.
  • New railcar deliveries totaled 21,100 units.
  • Orders totaled 32,400 units valued at $3.44 billion across a broad range of railcar types.
  • Cash generated by operating activities was $192.3 million.

Progress on Longer Term Financial Goals

  • Aggregate gross margin expanded to 22.8%, compared to 20.9% in the prior quarter, reaching the goal of at least 20% gross margin by the second half of fiscal 2016.
  • We remain on track to reach the goal of at least 25% ROIC for the second half of fiscal 2016.  ROIC of 23.7% for fiscal 2015 reflects record operating results tempered by working capital needs associated with higher production and syndication volumes, and planned capital expenditure programs.
  • Our Net Funded Debt : LTM EBITDA ratio continued to improve to 0.5 times.

William A. Furman, Chairman and CEO, said, "We continued to realize positive operating momentum in the fourth quarter, leading to record revenue, margin and earnings for both the quarter and fiscal year as a whole.  We intend to build on this operating momentum, using the strength of our integrated model and our diversified high margin new railcar backlog, some of which stretches into 2020.  We expect these factors will lead to another solid year of earnings and free cash flow in fiscal 2016."

"While recent new railcar order activity has been dampened by broad economic factors, it is too early to determine whether the level of new orders will continue at this muted pace.  We are an agile company and, if needed, we are ready to adapt quickly to market conditions.  We remain optimistic about the long term fundamentals and drivers of new railcar demand," Furman continued.  "Industry forecasts support this view, with above long-term average levels of new railcar deliveries expected in North America through 2019. Our strategy to diversify our product offerings, create efficient, flexible manufacturing capacity in low-cost facilities, drive more value through our lease syndication model, and increase revenue diversity in international markets, along with our strong balance sheet, positions us well."

"We are actively expanding our geographic reach and now sell into more global markets than ever before," Furman added.  "Most recently, we announced our entry into markets in the Middle East with an order for 1,200 tank cars from Saudi Railway Company (SAR).  Earlier this year, we expanded into South American markets through our investment in a Brazilian railcar manufacturer, now known as Greenbrier-Maxion.  Greenbrier's global growth complements and leverages our engineering expertise and production facilities in Mexico and Poland and at Gunderson, our flagship manufacturing facility in Oregon. Our international activity extends the Greenbrier brand and provides business diversification and growth opportunities over the longer term."

Furman concluded, "Greenbrier will continue its balanced approach to investing in projects that generate high rates of return, seeking growth opportunities in our core competencies, and returning capital to shareholders."

Share Repurchases

We repurchased 495,952 shares of common stock at a cost of $21.8 million during the quarter and an additional 490,123 shares at a cost of $17.8 million subsequent to August 31, 2015. Cumulative repurchases since October 31, 2013 aggregate 2,641,662 shares at a cost of $122.5 million.  We have $102.5 million remaining available under our cumulative $225 million share repurchase program.

Subsequent Events

Subsequent to quarter end, the Company refinanced its $290 million North American revolving credit facility, with a new five-year $550 million facility.  The Company also acquired a diversified portfolio of nearly 4,000 leased railcars previously owned by WLR-Greenbrier Rail Inc. and managed by Greenbrier, with the intent to sell them in the near term to institutional investors.  This portfolio acquisition is consistent with the Company's successful stated strategy to drive more volume through its lease syndication and asset management model.

Business Outlook

Based on current business trends, industry forecasts and production schedules for fiscal 2016, Greenbrier believes:

  • Deliveries will be approximately 20,000 – 22,500 units
  • Revenue will exceed $2.8 billion
  • Diluted EPS will be in the range of $5.65 to $6.15

As noted in the "Safe Harbor" statement, there are risks to achieving this guidance.  Certain orders and backlog in this release are subject to customary documentation and completion of terms.

Financial Summary


Q4 FY15

Q3 FY15

Sequential Comparison – Main Drivers

Revenue

$765.5M

$714.6M

Up 7.1% primarily due to increased deliveries

Gross margin

22.8%

20.9%

Up 190 bps due to favorable product mix and pricing and improved production efficiencies in the manufacturing segment

Selling and

administrative expense

$39.6M

$45.6M

Down 13.2% primarily due to non-recurring costs in Q3

 

Gain on disposition

of equipment

$0.4M

$0.7M

Timing of sales fluctuates and is opportunistic

Adjusted EBITDA

$147.6M

$116.3M

Up 26.9% driven by higher deliveries and margin and non-recurring costs in Q3

Effective tax rate

26.9%

30.7%

Reflects a change in the geographic mix of earnings and in GIMSA JV earnings

Net earnings attributable

to noncontrolling interest

$31.1M

$27.5M

Driven by an increase in deliveries and higher margin from our GIMSA JV

Net earnings

$66.9M

$42.8M


Diluted EPS

$2.02

$1.33


 

Segment Summary


Q4 FY15

Q3 FY15

Sequential Comparison – Main Drivers

Manufacturing

  Revenue

$657.5M

$593.4M

Up 10.8% primarily due to higher deliveries

  Gross margin

23.0%

21.5%

Up 150 bps due to favorable product mix and pricing and improved efficiencies

  Operating margin (1)

21.0%

19.5%


  Deliveries

6,200

5,700


Wheels & Parts

  Revenue

$84.6M

$97.4M

Down 13.1% primarily attributable to lower wheel and component volumes

  Gross margin

10.8%

8.0%

Up 280 bps primarily due to an adverse effect of lower scrap metal prices in Q3

  Operating margin (1)

7.8%

5.2%


Leasing & Services

  Revenue

$23.4M

$23.8M

Down 1.7% primarily due to a slight decline in management revenue associated with the timing of maintenance activities

  Gross margin

62.0%

58.0%

Up 400 bps due to higher margin interim rents on leased railcars for syndication

  Operating margin (1) (2)

43.6%

45.4%


  Lease fleet utilization

96.6%

97.6%



(1) See supplemental segment information on page 12 for additional information.

(2) Includes Net gain on disposition of equipment, which is excluded from gross margin.

 

Conference Call

Greenbrier will host a teleconference to discuss its fourth quarter 2015 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website.  Teleconference details are as follows:

  • October 30, 2015
  • 8:00 a.m. Pacific Daylight Time
  • Phone: 1-630-395-0143, Password: "Greenbrier" 
  • Real-time Audio Access:  ("Newsroom" at http://www.gbrx.com)

Please access the site 10 minutes prior to the start time. 

About Greenbrier

Greenbrier, (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 our 4 manufacturing facilities in the U.S. and Mexico and marine barges at our U.S. manufacturing facility.  Greenbrier also sells reconditioned wheel sets and provides wheel services at 9 locations throughout the U.S.  We recondition, manufacture and sell railcar parts at 4 U.S. sites.  Greenbrier is a 50/50 joint venture partner with Watco Companies, LLC in GBW Railcar Services, LLC which repairs and refurbishes freight cars at 33 locations across North America, including 12 tank car repair and maintenance facilities certified by the Association of American Railroads. Greenbrier builds new railroad freight cars and refurbishes freight cars for the European market through our operations in Poland. Greenbrier owns approximately 12,600 railcars, and performs management services for approximately 258,000 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, available manufacturing capacity, restructuring plans, new railcar delivery volumes and schedules, 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," "strategy," "could," "would," "should," "likely," "will," "may," "can," "designed to," "future," "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 and awards are not indicative of our financial results; uncertainty or changes 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; sovereign risk to contracts, exchange rates or property rights; 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, costs or inefficiencies associated with expansion, start-up, or changing of production lines or changes in production rates, changing technologies, transfer of production between facilities or non-performance of alliance partners, subcontractors or suppliers; ability to obtain suitable contracts for the sale of leased equipment and risks related to car hire and residual values; integration of current or future acquisitions and establishment of joint ventures; succession planning; discovery of defects in railcars or services resulting in increased warranty costs or litigation; physical damage or product or service liability claims that exceed our insurance coverage; train derailments or other accidents or claims that could subject us to legal claims; actions or inactions by various regulatory agencies including potential environmental remediation obligations or changing tank car or other rail car or railroad regulation; 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, 2014, 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 Net earnings 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, this measure presented may differ from and may not be comparable to similarly titled measures used by other companies.

Annualized ROIC is calculated by taking year to date Earnings from operations, less cash paid for income taxes, net, which is then annualized and divided by the average balance of the sum of the Revolving notes, plus Notes payable, plus Total equity, less cash in excess of $40 million.  The average is calculated based on the quarterly ending balances.

 

THE GREENBRIER COMPANIES, INC.

Consolidated Balance Sheets

(In thousands, unaudited)



   August 31, 2015

     May 31, 2015

 February 28, 2015

November 30, 2014

   August 31, 2014

Assets






   Cash and cash equivalents

$    172,930

$    122,783

$    145,512

$    118,958

$      184,916

   Restricted cash

8,869

8,912

8,722

9,170

20,140

   Accounts receivable, net 

196,029

214,890

207,488

191,532

199,679

   Inventories

445,535

426,655

418,590

372,039

305,656

   Leased railcars for syndication

212,534

213,197

198,010

177,221

125,850

   Equipment on operating leases, net

255,391

257,962

261,234

264,615

258,848

   Property, plant and equipment, net

303,135

285,570

271,977

258,303

243,698

   Investment in unconsolidated affiliates

87,270

91,217

71,225

72,342

69,359

   Intangibles and other assets, net

65,554

62,664

64,386

61,937

65,757

   Goodwill

43,265

43,265

43,265

43,265

43,265


$ 1,790,512

$ 1,727,115

$ 1,690,409

$ 1,569,382

$ 1,517,168







Liabilities and Equity






   Revolving notes

$      50,888

$      92,507

$      90,563

$      46,527

$      13,081

   Accounts payable and accrued liabilities

455,213

405,544

417,844

374,509

383,289

   Deferred income taxes

60,657

75,572

77,632

81,808

81,383

   Deferred revenue

33,836

24,209

28,287

27,067

20,603

   Notes payable

326,429

346,279

441,326

443,303

445,091







   Total equity - Greenbrier

732,838

672,396

541,491

519,884

511,390

   Noncontrolling interest

130,651

110,608

93,266

76,284

62,331

   Total equity

863,489

783,004

634,757

596,168

573,721


$ 1,790,512

$ 1,727,115

$  1,690,409

$ 1,569,382

$ 1,517,168

 

 

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Operations

(In thousands, except per share amounts, unaudited)



Years ending August 31,


2015


2014


2013

Revenue






   Manufacturing

$   2,136,051


$  1,624,916


$  1,215,734

   Wheels & Parts

371,237


495,627


469,222

   Leasing & Services

97,990


83,419


71,462


2,605,278


2,203,962


1,756,418

Cost of revenue






   Manufacturing

1,691,414


1,374,008


1,082,889

   Wheels & Parts

334,680


463,938


431,501

   Leasing & Services

41,831


43,796


35,655


2,067,925


1,881,742


1,550,045







Margin

537,353


322,220


206,373







Selling and administrative

151,791


125,270


103,175

Net gain on disposition of equipment

(1,330)


(15,039)


(18,072)

Gain on contribution to joint venture

-


(29,006)


-

Goodwill impairment

-


-


76,900

Restructuring charges

-


1,475


2,719

Earnings from operations

386,892


239,520


41,651







Other costs






Interest and foreign exchange

11,179


18,695


22,158

Earnings before income tax and earnings from unconsolidated affiliates

375,713


220,825


19,493

Income tax expense

(112,160)


(72,401)


(25,060)

Earnings (loss) before earnings from unconsolidated affiliates

 

263,553


 

148,424


 

(5,567)

Earnings from unconsolidated affiliates

1,756


1,355


186







Net earnings (loss)

265,309


149,779


(5,381)

Net earnings attributable to noncontrolling interest

(72,477)


(37,860)


(5,667)







Net earnings (loss) attributable to Greenbrier

$      192,832


$     111,919


$      (11,048)







Basic earnings (loss) per common share:

$            6.85


$           3.97


$          (0.41)







Diluted earnings (loss) per common share:

$            5.93


$           3.44


$             (0.41)







Weighted average common shares:






Basic

28,151


28,164


26,678

Diluted

33,328


34,209


26,678







Dividends declared per common share

$            0.60


$           0.15


$                 -

 

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Cash Flows

(In thousands, unaudited)



Years Ended August 31,


2015


2014


2013

Cash flows from operating activities:






    Net earnings (loss)

$           265,309


$       149,779


$         (5,381)

    Adjustments to reconcile net earnings (loss) to net cash

      provided by operating activities:






      Deferred income taxes

(20,151)


(4,687)


(9,662)

      Depreciation and amortization

45,156


40,422


41,447

      Net gain on disposition of equipment

(1,330)


(15,039)


(18,072)

      Accretion of debt discount

-


-


2,455

      Stock based compensation expense

19,459


11,285


6,302

      Gain on contribution to joint venture

-


(29,006)


-

      Goodwill impairment

-


-


76,900

     Noncontrolling interest adjustments

17,215


2,774


(2,144)

      Other

1,184


576


1,089

      Decrease (increase) in assets:






          Accounts receivable, net

13,652


(23,749)


(7,323)

          Inventories

(143,849)


(9,675)


19,045

          Leased railcars for syndication

(90,614)


(57,779)


22,881

          Other

575


(4,069)


969

    Increase (decrease) in liabilities:






          Accounts payable and accrued liabilities

72,419


63,362


(15,429)

          Deferred revenue

13,308


11,713


(8,485)

    Net cash provided by operating activities

192,333


135,907


104,592

Cash flows from investing activities:






    Proceeds from sales of assets

5,295


54,235


75,338

    Capital expenditures

(105,989)


(70,227)


(60,827)

    Decrease (increase) in restricted cash

271


(333)


(2,530)

    Investment in and advances to unconsolidated affiliates

(34,453)


(13,753)


(2,240)

    Other

3,345


-


(3,582)

    Net cash provided by (used in) investing activities

(131,531)


(30,078)


6,159

Cash flows from financing activities:






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

49,000



-

(16,396)

    Proceeds from revolving notes with maturities longer than 90 days

44,451


37,819


38,177

    Repayments of revolving notes with maturities longer than 90 days

(55,644)


(72,947)


(34,966)

    Proceeds from issuance of notes payable

-


200,000


2,186

    Repayments of notes payable

(7,475)


(128,797)


(58,831)

    Debt issuance costs

-


(382)


-

    Decrease (increase) in restricted cash

11,000


(11,000)


-

    Repurchase of stock

(69,950)


(33,583)


-

    Dividends

(16,491)


(4,123)


-

    Cash distribution to joint venture partner

(20,375)


(5,076)


-

    Investment by joint venture partner

-


419


3,206

    Excess tax benefit from restricted stock awards

2,908


109


900

    Other

(248)


-


(8)

    Net cash used in financing activities

(62,824)


(17,561)


(65,732)

    Effect of exchange rate changes

(9,964)


(787)


(1,155)

    Increase (decrease) in cash and cash equivalents

(11,986)


87,481


43,864

Cash and cash equivalents






Beginning of period

184,916


97,435


53,571

End of period

$          172,930


$       184,916


$        97,435
















 


THE GREENBRIER COMPANIES, INC.

Supplemental Information

(In thousands, except per share amounts, unaudited)


Operating Results by Quarter for 2015 are as follows:



First


Second


Third


Fourth


Total











Revenue










   Manufacturing

$        379,949


$      505,241


$      593,376


$     657,485


$  2,136,051

   Wheels & Parts

86,624


102,640


97,407


84,566


371,237

   Leasing & Services

28,485


22,268


23,823


23,414


97,990


495,058


630,149


714,606


765,465


2,605,278

Cost of revenue










   Manufacturing

316,037


403,227


465,658


506,492


1,691,414

   Wheels & Parts

76,872


92,768


89,645


75,395


334,680

   Leasing & Services

14,081


8,844


10,017


8,889


41,831


406,990


504,839


565,320


590,776


2,067,925











Margin

88,068


125,310


149,286


174,689


537,353











Selling and administrative expense

33,729


32,899


45,595


39,568


151,791

Net gain on disposition of equipment

(83)


(121)


(720)


(406)


(1,330)

Earnings from operations

54,422


92,532


104,411


135,527


386,892











Other costs










   Interest and foreign exchange

3,141


1,929


4,285


1,824


11,179

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

 

51,281


 

90,603


 

100,126


 

133,703


 

375,713

Income tax expense

(16,054)


(29,372)


(30,783)


(35,951)


(112,160)

Earnings (loss) from unconsolidated affiliates

755


(185)


982


204


1,756

Net earnings

35,982


61,046


70,325


97,956


265,309

Net earnings attributable to noncontrolling interest

(3,196)


(10,695)


(27,514)


(31,072)


(72,477)

Net earnings attributable to Greenbrier

$          32,786


$         50,351


$        42,811


$      66,884


$     192,832











Basic earnings per common share (1)

$             1.19


$            1.86


$            1.54


$          2.23


$           6.85

Diluted earnings per common share (1)

$             1.01


$            1.57


$            1.33


$          2.02


$           5.93



(1)

Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes and restricted stock units that are subject to performance criteria, for which actual levels of performance above target have been achieved, using the treasury stock method when dilutive 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, except per share amounts, unaudited)


Operating Results by Quarter for 2014 are as follows:



First


Second


Third


Fourth


Total











Revenue










   Manufacturing

$        359,473


$    347,755


$    425,583


$       492,105


$   1,624,916

   Wheels & Parts

113,401


136,540


140,663


105,023


495,627

   Leasing & Services

17,481


17,921


27,039


20,978


83,419


490,355


502,216


593,285


618,106


2,203,962

Cost of revenue










   Manufacturing

311,440


306,572


351,829


404,167


1,374,008

   Wheels & Parts

107,975


127,940


129,825


98,198


463,938

   Leasing & Services

9,381


9,853


14,856


9,706


43,796


428,796


444,365


496,510


512,071


1,881,742











Margin

61,559


57,851


96,775


106,035


322,220











Selling and administrative expense

26,109


28,125


34,800


36,236


125,270

Net gain on disposition of equipment

(3,651)


(5,416)


(5,619)


(353)


(15,039)

Restructuring charges

879


540


56


-


1,475

Gain on contribution to joint venture

-


-


-


(29,006)


(29,006)

Earnings from operations

38,222


34,602


67,538


99,158


239,520











Other costs










   Interest and foreign exchange

4,744


4,099


5,437


4,415


18,695

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

 

33,478


 

30,503


 

62,101


 

94,743


 

220,825

Income tax expense

(10,522)


(9,883)


(16,303)


(35,693)


(72,401)

Earnings (loss) from unconsolidated affiliates

41


(67)


298


1,083


1,355

Net earnings

22,997


20,553


46,096


60,133


149,779

Net earnings attributable to noncontrolling interest

 

(7,609)


 

(4,966)


 

(12,508)


 

(12,777)


 

(37,860)

Net earnings attributable to Greenbrier

$            15,388


$     15,587


$        33,588


$        47,356


$      111,919











Basic earnings per common share (1)

$              0.54


$         0.55


$          1.20


$            1.69


$           3.97

Diluted earnings per common share (1)

$              0.49


$         0.50


$          1.03


$            1.43


$           3.44



(1)

Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes 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 August 31, 2015:










Revenue


Earnings (loss) from operations


External


Intersegment


  Total


External


Intersegment


Total

Manufacturing

$          657,485


$                      -


$         657,485


$        138,319


$                      -


$    138,319

Wheels & Parts

84,566


6,807


91,373


6,577


585


7,162

Leasing & Services

23,414


19,067


42,481


10,210


19,067


29,277

Eliminations

-


(25,874)


(25,874)


-


(19,652)


(19,652)

Corporate

-


-


-


(19,579)


-


(19,579)


$          765,465


$                      -


$         765,465


$         135,527


$                      -


$    135,527



















Three months ended May 31, 2015:










Revenue


Earnings (loss) from operations


External


Intersegment


  Total


External


Intersegment


Total

Manufacturing

$          593,376


$                    33


$         593,409


$         115,675


$                      -


$    115,675

Wheels & Parts

97,407


7,605


105,012


5,078


607


5,685

Leasing & Services

23,823


11,722


35,545


10,824


11,722


22,546

Eliminations

-


(19,360)


(19,360)


-


(12,329)


(12,329)

Corporate

-


-


-


(27,166)


-


(27,166)


$          714,606


$                      -


$         714,606


$         104,411


$                      -


$    104,411

 

 


Total assets


August 31,


May 31,


2015


2015

Manufacturing

$          675,409


$           697,342

Wheels & Parts

291,798


290,363

Leasing & Services

549,073


538,896

Unallocated

274,232


200,514


$       1,790,512


$        1,727,115

 

The results of operations for GBW, which are shown below, are not reflected in the above tables as the investment is accounted for under the equity method of accounting.


As of and for the

Three Months Ended


August 31,
2015


May 31,
2015

Revenue

$                 95,200


$              88,800

Earnings from operations

$                      300


$                   200

Total assets

$               239,900


$            230,100









 

 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

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


Reconciliation of Net earnings to Adjusted EBITDA





Three Months Ended




August 31, 2015


May 31, 2015

Net earnings

$             97,956


$             70,325

Interest and foreign exchange

1,824


4,285

Income tax expense

35,951


30,783

Depreciation and amortization

11,898


10,860







Adjusted EBITDA

$              147,629


$           116,253








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, 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 August 31, 2015


 

Year Ended August 31, 2015

Backlog Activity (units)




Beginning backlog

45,100


31,500

Orders received

2,900


32,400

Production held as Leased railcars for syndication

(2,700)


(8,200)

Production sold directly to third parties

(4,000)


(14,400)

Ending backlog

41,300


41,300





Delivery Information (units)




Production sold directly to third parties

4,000


14,400

Sales of Leased railcars for syndication

2,200


6,700

Total deliveries

6,200


21,100

 

 

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 are reconciled as follows:



Three Months Ended


August 31, 2015

          May 31, 2015

Weighted average basic common shares outstanding (1)

30,040

27,842

Dilutive effect of convertible notes (2)

3,192

5,158

Dilutive effect of performance awards (3)

165

-

Weighted average diluted common shares outstanding

33,397

33,000




(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 are included in the Weighted average diluted common shares outstanding as the average stock price during the period exceeded the conversion price of $48.05.

(3)

Restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, and are included in Weighted average diluted shares outstanding when the company is in a net earnings position.

Diluted earnings per share was calculated using the more dilutive of two approaches.  The first approach includes the dilutive effect, using the treasury stock method, associated with shares underlying the 2026 Convertible notes and performance based restricted stock units that are subject to performance criteria, for which actual levels of performance above target have been achieved. 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.

 


Three Months Ended


  August 31, 2015

     May 31, 2015

Net earnings attributable to Greenbrier

$       66,884

$       42,811

Add back:



Interest and debt issuance costs on the 2018 Convertible notes, net of tax

744

1,234

Earnings before interest and debt issuance costs on convertible notes

$        67,628

$       44,045

Weighted average diluted common shares outstanding

33,397

33,000




Diluted earnings per share

$           2.02

$           1.33

 

 

SOURCE The Greenbrier Companies, Inc. (GBX)