Media & Resources Press Releases Greenbrier Reports Second Quarter Results

Greenbrier Reports Second Quarter Results

LAKE OSWEGO, Ore., April 5, 2016 /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE: GBX) today reported financial results for its second fiscal quarter ended February 29, 2016.

Second Quarter Highlights

  • Net earnings attributable to Greenbrier for the quarter were $44.9 million, or $1.41 per diluted share, on revenue of $669.1 million.
  • Adjusted EBITDA for the quarter was $108.2 million, or 16.2% of revenue.
  • Net debt was reduced by over $175 million during the quarter. Net debt to LTM EBITDA down to 0.2x.
  • New railcar backlog as of February 29, 2016 was 34,100 units with an estimated value of $4.0 billion (average unit sale price of $116,000), compared to 36,000 units with an estimated value of $4.1 billion (average unit sale price of $115,000) as of November 30, 2015.
  • Diversified orders for 3,000 new railcars were received during the quarter, valued at nearly $310 million, or an average price of approximately $103,000 per railcar.
  • New railcar deliveries totaled 4,500 units for the quarter, compared to 6,900 units for the quarter ended November 30, 2015.
  • Marine backlog as of February 29, 2016 was approximately $18 million.
  • Board declared a quarterly dividend of $0.20 per share payable on May 4, 2016 to shareholders of record as of April 13, 2016. This marks the seventh straight quarterly dividend.
  • Repurchased 533,061 shares of common stock at a cost of $13.3 million during the quarter. Board authorization for approximately $88.0 million remains available for further share repurchases.
  • Subsequent to quarter end, formed a 50/50 joint venture with Sumitomo Corporation of Americas to establish a leading axle machining facility on West Coast.

Progress on Longer Term Financial Goals

  • Second quarter aggregate gross margin, excluding the syndication of a railcar portfolio acquired in our first quarter, was 20.0%, consistent with our goal of at least 20% gross margin by the second half of fiscal 2016. The syndication generated high rates of return; however, the margin percentage had a dilutive impact, resulting in aggregate gross margin of 17.9%.
  • Second quarter annualized ROIC of 31.0% continues ROIC performance above 25% for the second consecutive quarter. We expect to maintain or exceed our 25% ROIC target for the second half of fiscal 2016.

William A. Furman, Chairman and CEO said, "Greenbrier delivered solid results again this quarter across all business units.  Our leasing and management services business profitably syndicated the majority of the 4,000 railcar portfolio acquired in our first quarter. We continue to manage these assets and earn fee income, deriving the benefits of our strong balance sheet and integrated model.  Based on our current outlook, we remain on track to achieve our fiscal 2016 guidance for deliveries, revenue and diluted EPS."

Furman added, "Greenbrier has transformed itself through the ongoing contributions of our employees and partners. Over the past five years, we have refined our business model and as industry demand moderates and customer requirements shift to different railcar types, Greenbrier is well-positioned. In recent years, we have diversified our product mix, and launched new high-value products while developing a low cost, flexible, international manufacturing base. Our aftermarket businesses in railcar repair, wheels and parts provide ongoing stability. In an extension of our aftermarket business, I am pleased to announce that we have formed GBSummit, a 50/50 joint venture with Sumitomo Corporation of Americas. When it opens in early 2017, GBSummit will be the preeminent axle machining location on the US West Coast that supports growing intermodal rail activity and will create value for our customers and partners."

Furman concluded, "Greenbrier is adapting well to the present industry and economic climate. We enjoy a diversified backlog, with non-energy related railcars representing 83% of our total backlog. Our healthy backlog and our integrated business model, unique in the industry, position us for steady performance into 2017 and beyond. Greenbrier has a strong balance sheet and we will continue to strategically invest globally in assets and projects generating high rates of return while returning capital to shareholders."

Business Outlook

Based on current business trends and production schedules for fiscal 2016, Greenbrier narrows previously provided guidance for:

  • New railcar deliveries to be approximately 20,000 – 22,000 units
  • Revenue to exceed $2.8 billion
  • Diluted EPS in the range of $5.70 to $6.10

We expect financial results to be weighted toward the first half of the year primarily due to line changeovers, product mix changes and lower production rates on certain lines in the second half of fiscal 2016.

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


Q2 FY16

Q1 FY16

Sequential Comparison – Main Drivers

Revenue

$669.1M

$802.4M

Down 16.6% primarily due to decreased deliveries

Gross margin

17.9%

23.0%

Down 510 bps due to inefficiencies associated with product line changeovers and marine production, and lower margin percentage on the syndication of acquired railcar portfolio

Selling and

administrative expense

$38.2M

$36.5M

Up 4.7% primarily due to consulting and higher employee related costs

Gain on disposition

of equipment

$10.7M

$0.3M

Timing of sales fluctuates and is opportunistic

Adjusted EBITDA

$108.2M

$161.8M

Down 33.1% driven by lower deliveries and gross margin

Effective tax rate

28.3%

31.3%

Reflects a change in the geographic mix of earnings and the effects of discrete items

Net earnings attributable

to noncontrolling interest

$21.3M

$29.3M

Driven by timing of deliveries and margin from our GIMSA JV

Net earnings

$44.9M

$69.4M


Diluted EPS

$1.41

$2.15


 

Segment Summary



Q2 FY16

Q1 FY16

Sequential Comparison – Main Drivers

Manufacturing

  Revenue

$454.5M

$698.7M

Down 35.0% primarily due to lower deliveries

  Gross margin

20.4%

23.7%

Down 330 bps due to lower syndication volume and  inefficiencies associated with line changeovers and marine production

  Operating margin (1)

17.3%

22.0%


  Deliveries

4,500

6,900


Wheels & Parts

  Revenue

$90.5M

$78.7M

Up 15.0% primarily attributable to a seasonal increase in wheel and component volumes and more favorable product mix

  Gross margin

10.0%

7.3%

Up 270 bps primarily due to higher sales volumes and more favorable product mix

  Operating margin (1)

7.2%

4.3%


Leasing & Services

  Revenue

$124.1M

$25.0M

Up due to the sale of acquired railcar portfolio

  Gross margin

14.6%

53.6%

Down due to lower margin on the syndication of acquired railcar portfolio; excluding this activity, gross margin is 51.1%

  Operating margin (1) (2)

19.7%

39.8%


  Lease fleet utilization

86.0%

89.0%

Decline driven by sale of leased railcars; number of off-lease railcars modestly lower than Q1


(1) See supplemental segment information on page 11 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 second quarter 2016 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website.  Teleconference details are as follows:

  • April 5, 2016
  • 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 manufacturing facilities in the U.S., Mexico and Poland and marine barges at our U.S. manufacturing facility. Greenbrier sells reconditioned wheel sets and provides wheel services at locations throughout the U.S. We recondition, manufacture and sell railcar parts at various U.S. sites. Through GBW Railcar Services, LLC, a 50/50 joint venture with Watco Companies, LLC, freight cars are repaired and refurbished at over 30 locations across North America, including more than 10 tank car repair and maintenance facilities certified by the Association of American Railroads. Greenbrier owns a lease fleet of over 9,000 railcars and performs management services for over 250,000 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 adjust manufacturing capacity, restructuring plans, new railcar delivery volumes and schedules, changes 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," "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; and issues arising from investigations of whistleblower complaints; 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, 2015, 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)



February 29, 2016

November 30, 2015

August 31, 2015

May 31, 2015

February 28, 2015

Assets






   Cash and cash equivalents

$    283,541

$    197,633

$    172,930

$    122,783

$    145,512

   Restricted cash

8,877

9,818

8,869

8,912

8,722

   Accounts receivable, net 

228,072

237,213

196,029

214,890

207,488

   Inventories

421,243

444,023

445,535

426,655

418,590

   Leased railcars for syndication

179,975

238,911

212,534

213,197

198,010

   Equipment on operating leases, net

235,171

252,641

255,391

257,962

261,234

   Property, plant and equipment, net

310,019

307,196

303,135

285,570

271,977

   Investment in unconsolidated affiliates

86,850

86,658

87,270

91,217

71,225

   Intangibles and other assets, net

73,296

76,157

65,554

62,664

64,386

   Goodwill

43,265

43,265

43,265

43,265

43,265


$ 1,870,309

$ 1,893,515

$ 1,790,512

$ 1,727,115

$ 1,690,409







Liabilities and Equity






   Revolving notes

$      75,000

$    163,888

$      50,888

$      92,507

$      90,563

   Accounts payable and accrued liabilities

401,010

384,670

455,213

405,544

417,844

   Deferred income taxes

55,204

63,483

60,657

75,572

77,632

   Deferred revenue

84,362

42,351

33,836

24,209

28,287

   Notes payable

322,539

324,668

326,429

346,279

441,326







   Total equity - Greenbrier

800,940

771,945

732,838

672,396

541,491

   Noncontrolling interest

131,254

142,510

130,651

110,608

93,266

   Total equity

932,194

914,455

863,489

783,004

634,757


$ 1,870,309

$ 1,893,515

$ 1,790,512

$ 1,727,115

$ 1,690,409

 


THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Income

(In thousands, except per share amounts, unaudited)



Three Months Ended

Six Months Ended


February 29,

2016


February 28,

2015


  February 29, 2016


February 28,

2015

Revenue









        Manufacturing

$         454,531


$        505,241


$    1,153,192


$      885,190


        Wheels & Parts

90,458


102,640


169,187


189,264


        Leasing & Services

124,090


22,268


149,089


50,753



669,079


630,149


1,471,468


1,125,207


Cost of revenue









        Manufacturing

361,827


403,227


894,860


719,264


        Wheels & Parts

81,388


92,768


154,390


169,640


        Leasing & Services

105,973


8,844


117,562


22,925



549,188


504,839


1,166,812


911,829











Margin

119,891


125,310


304,656


213,378











Selling and administrative expense

38,244


32,899


74,793


66,628


Net gain on disposition of equipment

(10,746)


(121)


(11,015)


(204)


Earnings from operations

92,393


92,532


240,878


146,954











Other costs









        Interest and foreign exchange

1,417


1,929


6,853


5,070


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

 

90,976


 

90,603


 

234,025


 

141,884


Income tax expense

(25,734)


(29,372)


(70,453)


(45,426)


Earnings before earnings (loss) from unconsolidated affiliates

 

65,242


 

61,231


 

163,572


 

96,458


Earnings (loss) from unconsolidated affiliates

974


(185)


1,357


570


 

Net earnings

 

66,216


 

61,046


 

164,929


 

97,028


Net earnings attributable to noncontrolling interest

(21,348)


(10,695)


(50,628)


(13,891)











Net earnings attributable to Greenbrier

$          44,868


$        50,351


$      114,301


$        83,137











Basic earnings per common share:

$              1.54


$            1.86


$              3.91


$            3.04











Diluted earnings per common share:

$              1.41


$            1.57


$              3.55


$            2.57











Weighted average common shares:









        Basic

29,098


27,028


29,244


27,348


        Diluted

32,360


33,073


32,542


33,395











Dividends declared per common share

$              0.20


$            0.15


$            0.40


$            0.30


 


THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Cash Flows

(In thousands, unaudited) 




Six Months Ended  



February 29,

2016


February 28,

2015







Cash flows from operating activities:






    Net earnings


$

164,929


$             97,028

    Adjustments to reconcile net earnings to net cash provided by

     (used in) operating activities:






     Deferred income taxes



(5,287)


(3,245)

     Depreciation and amortization



27,842


22,398

     Net gain on disposition of equipment



(11,015)


(204)

     Stock based compensation expense



10,740


7,193

     Noncontrolling interest adjustments



2,815


21,824

     Other



491


549

     Decrease (increase) in assets:






          Accounts receivable, net



(30,356)


(6,256)

          Inventories



21,922


(116,432)

          Leased railcars for syndication



(15,391)


(75,564)

          Other



(3,717)


(355)

    Increase (decrease) in liabilities:






          Accounts payable and accrued liabilities



(55,448)


37,521

          Deferred revenue



41,790


7,750

    Net cash provided by (used in) operating activities



149,315


(7,793)

Cash flows from investing activities:






    Proceeds from sales of assets



80,541


3,019

    Capital expenditures



(27,974)


(53,856)

    Investment in and advances to unconsolidated affiliates



(5,140)


(5,715)

    Decrease (increase) in restricted cash



(8)


418

   Other



2,640


467

   Net cash provided by (used in) investing activities



50,059


(55,667)

Cash flows from financing activities:






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



26,000


53,000

   Proceeds from revolving notes with maturities longer than 90 days



-


42,563

   Repayments of revolving notes with maturities longer than 90 days



(1,888)


(18,081)

   Repayments of notes payable



(3,730)


(3,740)

   Debt issuance costs



(4,149)


-

   Decrease in restricted cash



-


11,000

   Repurchase of stock



(33,246)


(46,946)

   Dividends



(11,575)


(8,016)

   Cash distribution to joint venture partner



(53,543)


(4,422)

   Excess tax benefit from restricted stock awards



2,786


3,858

   Other



(6)


-

   Net cash provided by (used in) financing activities



(79,351)


29,216

   Effect of exchange rate changes



(9,412)


(5,160)

   Increase (decrease) in cash and cash equivalents



110,611


(39,404)

Cash and cash equivalents






Beginning of period



172,930


184,916

End of period


$

283,541


$       145,512

 


THE GREENBRIER COMPANIES, INC.

Supplemental Information

(In thousands, except per share amounts, unaudited)


Operating Results by Quarter for 2016 are as follows:



First


Second


Total









Revenue







   Manufacturing

$     698,661


$       454,531


$       1,153,192


   Wheels & Parts

78,729


90,458


169,187


   Leasing & Services

24,999


124,090


149,089



802,389


669,079


1,471,468


Cost of revenue







   Manufacturing

533,033


361,827


894,860


   Wheels & Parts

73,002


81,388


154,390


   Leasing & Services

11,589


105,973


117,562



617,624


549,188


1,166,812









Margin

184,765


119,891


304,656









Selling and administrative expense

36,549


38,244


74,793


Net gain on disposition of equipment

(269)


(10,746)


(11,015)


Earnings from operations

148,485


92,393


240,878









Other costs







   Interest and foreign exchange

5,436


1,417


6,853


Earnings before income tax and earnings from unconsolidated affiliates          

 

143,049


 

90,976


 

234,025


Income tax expense

(44,719)


(25,734)


(70,453)


Earnings before earnings from unconsolidated affiliates

 

98,330


 

65,242


 

163,572


Earnings from unconsolidated affiliates

383


974


1,357


Net earnings

98,713


66,216


164,929


Net earnings attributable to noncontrolling interest

(29,280)


(21,348)


(50,628)


Net earnings attributable to Greenbrier

$       69,433


$       44,868


$         114,301









Basic earnings per common share (1)

$           2.36


$           1.54


$               3.91


Diluted earnings per common share (1)

$           2.15


$           1.41


$               3.55




(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 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, unaudited)


Segment Information


Three months ended February 29, 2016:











Revenue


Earnings (loss) from operations



External


Intersegment


  Total


External


Intersegment


Total


Manufacturing

$           454,531


$                       -


$         454,531


$           78,798


$                    17


$       78,815


Wheels & Parts

90,458


7,200


97,658


6,506


761


7,267


Leasing & Services

124,090


3,133


127,223


24,412


3,133


27,545


Eliminations

-


(10,333)


(10,333)


-


(3,911)


(3,911)


Corporate

-


-


-


(17,323)


-


(17,323)



$           669,079


$                      -


$         669,079


$           92,393


$                       -


$       92,393



Three months ended November 30, 2015:











Revenue


Earnings (loss) from operations



External


Intersegment


  Total


External


Intersegment


Total


Manufacturing

$           698,661


$                       -


$         698,661


$         153,704


$                       -


$     153,704


Wheels & Parts

78,729


6,816


85,545


3,403


684


4,087


Leasing & Services

24,999


6,709


31,708


9,958


6,709


16,667


Eliminations

-


(13,525)


(13,525)


-


(7,393)


(7,393)


Corporate

-


-


-


(18,580)


-


(18,580)



$           802,389


$                       -


$         802,389


$         148,485


$                       -


$     148,485


 


Total assets



   February 29,


  November 30,


(In thousands)

2016


2015


Manufacturing

$              624,961


$           656,505


Wheels & Parts

307,724


302,164


Leasing & Services

551,763


631,699


Unallocated

385,861


303,147



$           1,870,309


$         1,893,515


 

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



       February 29, 2016


November 30, 2015



Revenue

$                  97,700


$                96,000



Earnings from operations

$                    3,600


$                  2,400



Total assets

$                247,700


$              245,700














 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

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


Reconciliation of Net earnings to Adjusted EBITDA





Three Months Ended




   February 29,

2016


 November 30,

2015

Net earnings

$             66,216


$           98,713

Interest and foreign exchange

1,417


5,436

Income tax expense

25,734


44,719

Depreciation and amortization

14,868


12,974







Adjusted EBITDA

$         108,235


$        161,842







 




Three Months

Ended

February 29,

2016

Backlog Activity (units)




Beginning backlog

36,000

Orders received

3,000

Production held as Leased railcars for syndication

(1,100)

Production sold directly to third parties

(3,800)

Ending backlog

34,100



Delivery Information (units)


Production sold directly to third parties

3,800

Sales of Leased railcars for syndication

700

Total deliveries

4,500

 


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


February 29,

2016

November 30,

2015

Weighted average basic common shares outstanding (1)

29,098

29,391

Dilutive effect of convertible notes (2)

3,203

3,177

Dilutive effect of performance awards (3)

59

10

Weighted average diluted common shares outstanding

32,360

32,578






(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 excluded in the Weighted average diluted common shares outstanding as the average stock price during the periods did not exceed the applicable conversion price.



(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


February 29,

2016

November 30,

2015

Net earnings attributable to Greenbrier

$         44,868

$        69,433

Add back:



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

733

496

Earnings before interest and debt issuance costs on convertible notes

$         45,601

$        69,929

Weighted average diluted common shares outstanding

32,360

32,578




Diluted earnings per share

$             1.41

$            2.15

 

SOURCE The Greenbrier Companies, Inc. (GBX)