Media & Resources Press Releases Greenbrier Reports Strong Fiscal Fourth Quarter; Growing Backlog

Greenbrier Reports Strong Fiscal Fourth Quarter; Growing Backlog

LAKE OSWEGO, Ore., Nov. 3, 2011 /PRNewswire/ -- The Greenbrier Companies (NYSE: GBX) today reported results for its fiscal fourth quarter and fiscal year ended August 31, 2011.

Fourth Quarter Highlights

Financial Highlights:

  • Revenues for the fourth quarter of 2011 were a record $442.7 million, up from $178.8 million in the prior year's fourth quarter.
  • Adjusted EBITDA for the quarter was $39.1 million, or 8.8% of revenue, compared to $15.5 million, or 8.7% of revenues in the fourth quarter of 2010.
  • Net earnings attributable to Greenbrier ("net earnings") for the quarter were $12.6 million, or $.42 per diluted share, compared to net earnings of $7.7 million, or $.33 per diluted share, in the prior year's fourth quarter.
  • Results for the quarter include a loss on extinguishment of debt of $5.7 million pre-tax, $3.4 million after-tax, for costs associated with the repayment in full of a $72 million term loan.  Excluding these charges, net earnings were $16.0 million, or $.52 per diluted share.
  • Net earnings for the prior year's fourth quarter included earnings of $11.9 million, both pre- and net of tax, or $.50 per diluted share, related to a special non-cash item for the release of the liability related to the 2008 deconsolidation of the Company's former subsidiary, TrentonWorks.  Excluding this item, net loss for the prior year's fourth quarter was $4.2 million, or $0.17 per diluted share.
 

Fiscal 2011 Highlights

Segment Summary:

  • New railcar deliveries in the fourth quarter of 2011 were a record 4,000 units, compared to 700 units in the fourth quarter of 2010.  Total new railcar deliveries were 9,400 units in fiscal 2011, compared to 2,500 units in fiscal 2010.
  • New railcar orders for 5,300 units were received during the quarter; orders for 19,500 units were received during the full fiscal year.
  • Greenbrier's new railcar manufacturing backlog as of August 31, 2011 was 15,400 units with an estimated value of $1.23 billion, compared to 13,600 units with a value of $1.05 billion as of May 31, 2011, and 5,300 units valued at $420 million as of August 31, 2010.
 

Financial Summary:

  • Revenues for the year were $1.243 billion, an increase of 64% from $756 million last year.  
  • Adjusted EBITDA for fiscal 2011 was $101.0 million, or 8.1% of revenues, up from 2010 Adjusted EBITDA of $72.1 million, or 9.5% of revenues.
  • Net earnings for 2011 were $6.5 million or $.24 per diluted share compared to last year's $4.3 million, or $.21 per diluted share.  The 2011 results include a charge of $9.4 million, net of tax, or $0.35 per diluted share for loss on extinguishment of debt. The 2010 results include income of $13.1 million net of tax, or $.65 per diluted share related to special items and gain on extinguishment of debt.
 

Liquidity Summary:

  • The Company ended the year with $50 million of cash and almost $200 million of committed additional borrowing capacity.  On November 2, 2011, the Company's North American revolving line of credit was increased by $15 million to a total of $260 million under existing provisions of the credit agreement.
  • During 2011, the Company strengthened its balance sheet, extended debt maturity dates, and lowered its interest costs by $10 million per annum through the issuance of 3 million shares of common stock raising $63 million of net proceeds, the sale of $230 million of 3.5% senior convertible notes and retirement of $235 million 8⅜ senior unsecured notes, and the refinancing of its North American credit facility.
 

Discussion of Quarterly Results and Outlook

William A. Furman, president and chief executive officer, said, "We ended the quarter and the year with strong operating momentum, particularly in our manufacturing segment where we successfully executed at high production volumes.  We continue to see strength in our end markets across each of our business segments and our new railcar backlog continued to grow in our fourth quarter.  These factors give us good visibility and confidence that we can support higher new railcar production levels in fiscal 2012.  We believe our industry fundamentals are sound, and that several forces are driving new railcar demand that are uncoupled from the more uncertain economic and political environments.  Among these forces are stronger railroad balance sheets, truck traffic diversion to rail, replacement demand, and a growing strength in the US energy market, which will continue to create increased demand for covered hopper cars and tank cars."

Mark Rittenbaum, chief financial officer added, "We achieved the key objectives we outlined for fiscal 2011. Firstly, we delivered 4,000 railcars for the quarter and 9,400 railcars in the year, consistent with the expectations we set.  Secondly, we successfully ramped production and opened new production lines, ensuring sufficient capacity to meet the anticipated increase in demand during the industry upturn in 2012 and beyond.  Thirdly, we improved operational efficiencies by lowering our cost structure. Lastly, we strengthened our balance sheet and liquidity, saving approximately $10 million in annual pre-tax interest expense and enhancing our capital base.  This savings was achieved by raising additional equity and refinancing a substantial portion of our debt at lower interest rates."

Segment Details

The Manufacturing segment consists of marine and new railcar production in Europe and North America. Manufacturing segment revenue for the fourth quarter was $305.6 million, compared to $69.5 million in the fourth quarter of 2010. This revenue increase was primarily due to higher railcar deliveries, including the delivery of leased railcars for syndication, which were produced in previous periods.  This was partially offset by a decline in marine barge activity and a change in railcar product mix. Current quarter new railcar deliveries totaled 4,000 units, compared to 700 units in the prior comparable period. Manufacturing gross margin for the fourth quarter was 9.9% of revenues, compared to 10.8% in the fourth quarter of 2010. The gross margin decrease was primarily a result of a less favorable product mix, partially offset by operating at higher production rates.

The Wheel Services, Refurbishment & Parts segment, consisting of a network of 38 locations, provides wheel services, and repairs and refurbishes railcars and provides railcar parts across North America. Revenue for this segment in the current quarter was $119.3 million, compared to $90.6 million in the fourth quarter of 2010. Gross margin for the Wheel Services, Refurbishment & Parts segment was 10.8% of revenues, compared to 10.4% of revenues in the prior comparable period.  The revenue and gross margin increases were primarily the result of higher sales volumes in wheels and repair, and metal scrapping programs that were in effect for only a portion of the prior comparable year.

The Leasing & Services segment includes results from the Company-owned lease fleet of approximately 9,000 railcars and from fleet management services provided for approximately 216,000 railcars. Revenue for this segment was $17.9 million for the quarter, compared to $18.7 million in the same quarter last year. Leasing & Services' gross margin for the quarter was 43.7% of revenue, compared to 48.1% of revenue in the same quarter last year. The decrease from the prior year's fourth quarter was primarily a result of certain non-recurring items.   Lease fleet utilization as of the end of the quarter was 95.7%, compared to 96.8% as of May 31, 2011, and 94.4% as of August 31, 2010.  

Gains on disposition of equipment in the current quarter were $2.2 million, compared to $2.5 million in the fourth quarter of 2010.

Selling and administrative costs were $22.1 million for the quarter, or 5.0% of revenues, versus $19.2 million, or 10.7% of revenues, for the same quarter last year. The increase is primarily due to increased employee related costs, including restoration of salary reductions implemented during the down turn and increases in incentive compensation.

Interest and foreign exchange expense was $6.3 million for the quarter, compared to $10.9 million for the same period in 2010. The current quarter benefited from lower interest rates from our recent refinancings.

Business Outlook

Based on current business trends, management anticipates that both revenues and Adjusted EBITDA will be significantly higher in fiscal 2012, compared to fiscal 2011. The major drivers for the year will be continued momentum across all business segments, particularly our manufacturing segment, as the new freight car market continues to rebound.  New railcar deliveries are expected to exceed 15,000 units for the year.  The Company has increased its production rates on existing production lines and its capacity at its facilities in Mexico.  Currently, railcars are being produced on eight production lines in North America, with the planned flexibility to produce railcars on three additional lines later in the fiscal year.

Conference Call

The Greenbrier Companies will host a teleconference to discuss fourth quarter results.  Teleconference details are as follows:

  • November 3, 2011
  • 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.  Following the call, a replay will be available on the same website for 30 days.  Telephone replay will be available through November 19, 2011 at 1-203-369-1485.

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 three 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 38 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 9,000 railcars, and performs management services for approximately 216,000 railcars.

"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:  This 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, 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," "contemplates," "expects," "intends," "plans," "seeks," "estimates," "could," "would," "will," "may," "can," 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 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, 2010 and in our Quarterly Report on Form 10-Q for the fiscal quarter ended May 31, 2011, and our other reports on file with the Securities and Exchange Commission.  Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date hereof. Except as otherwise required by law, we do not assume any obligation to update any forward-looking statements.

Adjusted EBITDA is not a financial measure under generally accepted accounting principles (GAAP). We define Adjusted EBITDA as earnings (loss) attributable to Greenbrier before special items, loss (gain) on extinguishment of debt, interest and foreign exchange, income tax expense (benefit), 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.

THE GREENBRIER COMPANIES, INC.

 

Condensed Consolidated Balance Sheets
Years ended August 31,

 
   

(In thousands, unaudited)

 

August 31,
2011

 

August 31,
2010

   

Assets

           

  Cash and cash equivalents

 

$       50,222

 

$    98,864

   

  Restricted cash

 

2,113

 

2,525

   

  Accounts receivable, net  

 

188,443

 

89,252

   

  Inventories

 

323,512

 

204,626

   

  Leased railcars for syndication

 

30,690

 

12,804

   

  Equipment on operating leases, net

 

321,141

 

302,663

   

  Property, plant and equipment, net

 

161,200

 

132,614

   

  Goodwill

 

137,066

 

137,066

   

  Intangibles and other assets, net

 

87,268

 

92,474

   
   

$  1,301,655

 

$1,072,888

   
             

Liabilities and Equity

           

  Revolving notes

 

$       90,339

 

$       2,630

   

  Accounts payable and accrued liabilities

 

316,536

 

181,638

   

  Deferred income taxes

 

83,839

 

81,136

   

  Deferred revenue

 

5,900

 

11,377

   

  Notes payable

 

429,140

 

498,700

   
             

  Total equity Greenbrier

 

361,573

 

285,938

   

  Noncontrolling interest

 

14,328

 

11,469

   

  Total equity

 

375,901

 

297,407

   
   

$  1,301,655

 

$1,072,888

   
           

 

THE GREENBRIER COMPANIES, INC.

 

Condensed Consolidated Statements of Operations
Years ended August 31,

 
   

(In thousands, except per share amounts, unaudited)

 

2011

 

2010

   

2009

     

Revenue

                   

  Manufacturing

 

$      721,102

 

$     295,566

   

$   462,496

     

  Wheel Services, Refurbishment & Parts

 

452,865

 

388,434

   

475,397

     

  Leasing & Services

 

69,323

 

72,280

   

78,298

     
   

1,243,290

 

756,280

   

1,016,191

     
                     

Cost of revenue

                   

  Manufacturing

 

661,127

 

268,395

   

458,733

     

  Wheel Services, Refurbishment & Parts

 

405,449

 

344,522

   

420,294

     

  Leasing & Services

 

37,183

 

41,365

   

45,991

     
   

1,103,759

 

654,282

   

925,018

     
                     

Margin

 

139,531

 

101,998

   

91,173

     
                     

Selling and administrative

 

80,326

 

69,931

   

65,743

     

Gain on disposition of equipment

 

(8,369)

 

(8,170)

   

(1,934)

     

Goodwill impairment

 

-

 

-

   

55,667

     

Special items

 

-

 

(11,870)

   

-

     

Earnings (loss) from operations

 

67,574

 

52,107

   

(28,303)

     
                     

Other costs

                   

  Interest and foreign exchange

 

36,992

 

45,204

   

44,612

     

  Loss (gain) on extinguishment of debt

 

15,657

 

(2,070)

   

1,300

     

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

 

14,925

 

8,973

   

(74,215)

     

Income tax benefit (expense)

 

(3,564)

 

959

   

16,917

     

Earnings (loss) before loss from  unconsolidated  affiliates

 

11,361

 

9,932

   

(57,298)

     

Loss from  unconsolidated affiliates

 

(2,974)

 

(1,601)

   

(565)

     
                     

Net earnings (loss)

 

8,387

 

8,331

   

(57,863)

     

Net (earnings) loss attributable to noncontrolling interest

 

(1,921)

 

(4,054)

   

1,472

     
                     

Net earnings (loss) attributable to Greenbrier

 

$          6,466

 

$         4,277

   

$    (56,391)

     
                     

Basic earnings (loss) per common share:

 

$            0.27

 

$           0.23

   

$        (3.35)

     
                     

Diluted earnings (loss) per common share:

 

$            0.24

 

$           0.21

   

$        (3.35)

     
                     

Weighted average common shares:

                   

Basic

 

24,100

 

18,585

   

16,815

     

Diluted

 

26,501

 

20,213

   

16,815

     
                     
   
                       

 

THE GREENBRIER COMPANIES, INC.

 

Condensed Consolidated Statements of Cash Flows
Years ended August 31,

 
   

(In thousands, unaudited)

2011

 

2010

 

2009

   

Cash flows from operating activities:

             

 Net earnings (loss)

$         8,387

 

$       8,331

 

$  (57,863)

   

 Adjustments to reconcile net earnings (loss) to net cash (used in) provided by operating activities:

             

   Deferred income taxes

2,399

 

15,052

 

(13,299)

   

   Depreciation and amortization

38,293

 

37,511

 

37,669

   

   Gain on sales of leased equipment

(5,121)

 

(6,543)

 

(1,167)

   

   Accretion of debt discount

6,583

 

8,149

 

4,948

   

   Goodwill impairment

-

 

-

 

55,667

   

   Special items

-

 

(11,870)

 

-

   

   Loss (gain) on extinguishment of debt (non-cash portion)

8,453

 

(2,070)

 

915

   

   Other

6,762

 

4,237

 

3,583

   

   Decrease (increase) in assets:

             

     Accounts receivable

(96,552)

 

22,430

 

58,521

   

     Inventories

(116,866)

 

(45,212)

 

109,469

   

     Leased railcars for syndication

(20,839)

 

759

 

11,123

   

     Other

8,863

 

6,455

 

242

   

   Increase (decrease) in liabilities:

             

     Accounts payable and accrued liabilities

130,673

 

12,777

 

(86,514)

   

     Deferred revenue

(5,287)

 

(7,445)

 

(2,829)

   

   Net cash (used in) provided by operating activities

(34,252)

 

42,561

 

120,465

   

Cash flows from investing activities:

             

 Proceeds from sales of equipment

18,730

 

22,978

 

15,555

   

 Investment in and advances (to) from unconsolidated affiliates

(2,330)

 

(927)

 

-

   

 Contract placement fee

-

 

(6,050)

 

-

   

 Decrease (increase) in restricted cash

412

 

(1,442)

 

(109)

   

 Capital expenditures

(84,302)

 

(38,989)

 

(38,847)

   

 Other

(1,774)

 

260

 

429

   

 Net cash used in investing activities

(69,264)

 

(24,170)

 

(22,972)

   

Cash flows from financing activities:

             

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

71,625

 

(11,934)

 

(81,251)

   

 Proceeds from revolving notes with maturities longer than 90 days

25,159

 

5,698

 

-

   

 Repayments of revolving notes with maturities longer than 90 days

(10,000)

 

(5,698)

 

-

   

 Proceeds from issuance of notes payable

231,250

 

2,149

 

75,000

   

 Debt issuance costs

(11,469)

 

(109)

 

(5,232)

   

 Repayments of notes payable

(311,360)

 

(38,267)

 

(16,436)

   

 Proceeds from equity offering

63,180

 

56,250

 

-

   

 Expenses from equity offering

(420)

 

(3,542)

 

-

   

 Investment by joint venture partner

-

 

-

 

1,400

   

 Dividends paid

-

 

-

 

(2,001)

   

 Other

26

 

29

 

3,973

   

 Net cash provided by (used in) financing activities

57,991

 

4,576

 

(24,547)

   

 Effect of exchange rate changes

(3,117)

 

(290)

 

(2,716)

   

Increase (decrease) in cash and cash equivalents

(48,642)

 

22,677

 

70,230

   

Cash and cash equivalents

             

Beginning of period

98,864

 

76,187

 

5,957

   

End of period

$       50,222

 

$     98,864

 

$   76,187

   
   
             

 

THE GREENBRIER COMPANIES, INC.

 

Supplemental Information
Quarterly Results of Operations (Unaudited)

 

Operating results by quarter for 2011 and 2010 are as follows:

 
   

(In thousands, except per share amount)

First

 

Second

 

Third

 

Fourth

 

Total

   

2011

                     

Revenue                                                               

                     

 Manufacturing

$     85,440

 

$   156,621

 

$   173,487

 

$   305,554

 

$   721,102

   

 Wheel Services, Refurbishment & Parts

95,268

 

112,015

 

126,317

 

119,265

 

452,865

   

 Leasing & Services

18,226

 

15,704

 

17,476

 

17,917

 

69,323

   
 

198,934

 

284,340

 

317,280

 

442,736

 

1,243,290

   

Cost of revenue

                     

 Manufacturing

79,747

 

147,552

 

158,674

 

275,154

 

661,127

   

 Wheel Services, Refurbishment & Parts

86,411

 

101,413

 

111,202

 

106,423

 

405,449

   

 Leasing & Services

9,120

 

8,725

 

9,254

 

10,084

 

37,183

   
 

175,278

 

257,690

 

279,130

 

391,661

 

1,103,759

   
                       

Margin

23,656

 

26,650

 

38,150

 

51,075

 

139,531

   
                       

Selling and administrative

17,938

 

17,693

 

22,580

 

22,115

 

80,326

   

Gain on disposition of equipment

(2,510)

 

(1,961)

 

(1,678)

 

(2,220)

 

(8,369)

   

Earnings from operations

8,228

 

10,918

 

17,248

 

31,180

 

67, 574

   
                       

Other costs

                     

 Interest and foreign exchange

10,304

 

10,536

 

9,807

 

6,345

 

36,992

   

 Loss on extinguishment of debt

-

 

-

 

10,007

 

5,650

 

15,657

   

Earnings before income tax and loss from unconsolidated affiliates

(2,076)

 

382

 

(2,566)

 

19,185

 

14,925

   
                       

Income tax benefit (expense)

611

 

(100)

 

301

 

(4,376)

 

(3,564)

   
                       

Loss from unconsolidated affiliates

(587)

 

(575)

 

(539)

 

(1,273)

 

(2,974)

   

Net earnings (loss)

(2,052)

 

(293)

 

(2,804)

 

13,536

 

8,387

   

Net earnings attributable to Noncontrolling interest

(252)

 

(257)

 

(510)

 

(902)

 

(1,921)

   

Net earnings (loss) attributable to Greenbrier

$      (2,304)

 

$         (550)

 

$      (3,314)

 

$     12,634

 

$       6,466

   
                       

Basic earnings (loss) per common share:

$        (0.11)

 

$        (0.02)

 

$        (0.14)

 

$         0.50

 

$         0.27

(1)

 

Diluted earnings (loss)  per common share:

$        (0.11)

 

$        (0.02)

 

$        (0.14)

 

$         0.42

 

$         0.24

(2)

 
   

(1)  Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Unvested restricted stock awards are excluded from the per share calculation for the first, second and third quarters due to a net loss in each of those periods.

(2)  Quarterly amounts do not total to the year to date amount as each period is calculated discretely. The dilutive effect of warrants is excluded from per share calculations for the first, second and third quarters due to net losses for those periods. The fourth quarter dilutive earnings per common share includes the outstanding warrants using the treasury stock method, which equates to 2.3 million shares, and the dilutive effect of 6.0 million shares underlying the 2018 Convertible Notes using the "if converted" method under which $1.4 million of debt issuance and interest costs, net of tax, were added back to net earnings.


 
 
                     

 

THE GREENBRIER COMPANIES, INC.

 

Supplemental Information
Quarterly Results of Operations (Unaudited)

 

(In thousands, except per share amount)

First

 

Second

 

Third

 

Fourth

 

Total

   

2010

                     

Revenue                                                               

                     

 Manufacturing

$     60,078

 

$     88,065

 

$     77,877

 

$     69,546

 

$   295,566

   

 Wheel Services, Refurbishment & Parts

92,300

 

94,329

 

111,242

 

90,563

 

388,434

   

 Leasing & Services

17,781

 

17,455

 

18,312

 

18,732

 

72,280

   
 

170,159

 

199,849

 

207,431

 

178,841

 

756,280

   

Cost of revenue

                     

 Manufacturing

55,847

 

81,608

 

68,931

 

62,009

 

268,395

   

 Wheel Services, Refurbishment & Parts

83,286

 

83,387

 

96,725

 

81,124

 

344,522

   

 Leasing & Services

10,918

 

10,789

 

9,931

 

9,727

 

41,365

   
 

150,051

 

175,784

 

175,587

 

152,860

 

654,282

   
                       

Margin

20,108

 

24,065

 

31,844

 

25,981

 

101,998

   
                       

Selling and administrative

16,208

 

16,958

 

17,519

 

19,246

 

69,931

   

Gain on disposition of equipment

(1,534)

 

(101)

 

(4,024)

 

(2,511)

 

(8,170)

   

Special items

-

 

-

 

-

 

(11,870)

 

(11,870)

(1)

 

Earnings from operations

5,434

 

7,208

 

18,349

 

21,116

 

52,107

   
                       

Other costs

                     

 Interest and foreign exchange

11,112

 

12,406

 

10,811

 

10,875

 

45,204

   

 Gain on extinguishment of debt

-

 

-

 

(1,275)

 

(795)

 

(2,070)

   

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

(5,678)

 

(5,198)

 

8,813

 

11,036

 

8,973

   
                       

Income tax benefit (expense)

2,500

 

944

 

(2,418)

 

(67)

 

959

   
                       

Loss from unconsolidated affiliates

(183)

 

(131)

 

(318)

 

(969)

 

(1,601)

   

Net earnings (loss)

(3,361)

 

(4,385)

 

6,077

 

10,000

 

8,331

   

Net loss (earnings) attributable to noncontrolling interest

117

 

(367)

 

(1,514)

 

(2,290)

 

(4,054)

   

Net earnings (loss) attributable to Greenbrier

$      (3,244)

 

$      (4,752)

 

$       4,563

 

$       7,710

 

$       4,277

   
                       

Basic earnings (loss) per common share:

$        (0.19)

 

$        (0.28)

 

$         0.25

 

$         0.35

 

$         0.23

   

Diluted earnings (loss)  per common share:

$       (0.19)

 

$        (0.28)

 

$         0.23

 

$         0.33

 

$         0.21

(2)

 

(1)  2010 includes income of $11.9 million net of tax for a special item related to the release of the liability associated with the 2008 de-consolidation of our former Canadian subsidiary.

(2)  Quarterly amounts do not total to the year to date amount as each period is calculated discretely. The dilutive effect of options and warrants are excluded from per share calculations for the first and second quarters due to net losses for those periods.

 
                     

 

THE GREENBRIER COMPANIES, INC.

 

Supplemental Disclosure
Reconciliation of Net earnings attributable to Greenbrier to Adjusted EBITDA (1)

 
   

(In thousands, unaudited)

 

Year ended August 31,

 
   

2011

 

2010

 

Net earnings attributable to Greenbrier

 

$        6,466

 

$       4,277

 

Interest and foreign exchange

 

36,992

 

45,204

 

Income tax expense (benefit)

 

3,564

 

(959)

 

Depreciation and amortization

 

38,293

 

37,511

 

Loss (gain) on extinguishment of debt

 

15,657

 

(2,070)

 

Special Items

 

-

 

(11,870)

 

Adjusted EBITDA

 

$    100,972

 

$     72,093

 
   
   
   

Three months ended
August 31,

 
   

2011

 

2010

 

Net earnings attributable to Greenbrier

 

$      12,634

 

$       7,710

 

Interest and foreign exchange

 

6,345

 

10,875

 

Income tax expense

 

4,376

 

67

 

Depreciation and amortization

 

10,119

 

9,544

 

Loss (gain) on extinguishment of debt

 

5,650

 

(795)

 

Special Items

 

-

 

(11,870)

 

Adjusted EBITDA

 

$      39,124

 

$     15,531

 
   
         

 

(1)

Adjusted EBITDA is not a financial measure under generally accepted accounting principles (GAAP). We define Adjusted EBITDA as earnings attributable to Greenbrier before special items, loss (gain) on extinguishment of debt, interest and foreign exchange, income tax expense (benefit), 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.

 
   

 

SOURCE The Greenbrier Companies, Inc. (GBX)