Media & Resources Press Releases Greenbrier Reports Third Quarter Results (1)

Greenbrier Reports Third Quarter Results

LAKE OSWEGO, Ore., July 6, 2016 /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE: GBX) today reported financial results for its third fiscal quarter ended May 31, 2016.

Third Quarter Highlights

  • Net earnings attributable to Greenbrier for the quarter were $35.4 million, or $1.12 per diluted share, on revenue of $612.9 million
  • Adjusted EBITDA for the quarter was $99.5 million, or 16.2% of revenue.
  • Net debt was reduced by over $21 million during the quarter.  Net debt is less than $100 million on total assets of $1.8 billion. Net debt to LTM EBITDA maintained at 0.2x.
  • New railcar backlog as of May 31, 2016 was 31,200 units with an estimated value of $3.6 billion (average unit sale price of $116,000), compared to 34,100 units with an estimated value of $4.0 billion (average unit sale price of $116,000) as of February 29, 2016.  
  • Diversified orders for 1,700 new railcars were received during the quarter, valued at $150 million, or an average price of approximately $91,000 per railcar.
  • New railcar deliveries totaled 4,300 units for the quarter, compared to 4,500 units for the quarter ended February 29, 2016.
  • Orders for two articulated ocean-going barges during the quarter and three ocean-going deck barges in June bring marine backlog to over $120 million.
  • Board declared a 5% increase in the quarterly dividend to $0.21 per share payable on August 10, 2016 to shareholders of record as of July 20, 2016.  

Progress on Longer Term Financial Goals

  • Third quarter aggregate gross margin, excluding syndication activity from a railcar portfolio acquired in our first quarter, was 22.5%, consistent with our goal of at least 20% gross margin by the second half of fiscal 2016.  We continue to be pleased with the portfolio syndication returns; however, the margin percentage on this activity had a dilutive impact, resulting in aggregate gross margin of 20.7%.
  • Third quarter annualized ROIC of 28.9% continues ROIC performance above 25% for the third consecutive quarter. We expect to maintain or exceed our 25% ROIC target for fiscal 2016.

William A. Furman, Chairman and CEO said, "We posted strong operational and financial results in the quarter, particularly in light of growing industry headwinds. Profitability was solid with aggregate gross margin at 20.7%.  I am proud of our results so far this year and pleased that we expect to achieve full year results within our range of expectations.  This is a testament to the dedication of our employees and strength of our integrated business model."

Furman added, "As North American rail markets adjust to lower railcar loadings and increased rail velocity, we will focus on this core business while growing our earnings base in select international markets where long-term demand for railcars is strong.  We achieved an important international milestone by beginning production of 1,200 tank cars for Saudi Railway Company's October 2015 order.  I am also pleased about the recently announced extension of our partnership in Brazil and strongly believe that global markets will be a key driver of future growth." 

Furman continued, "Greenbrier's backlog remains strong, with non-energy related railcars representing over 80% of our total backlog.  The North American energy sector is contending with a surplus of railcars.  We continue to engage with our customers to identify solutions for the 5,000 sand cars in our backlog impacted by this over-supply issue.  Finally, with the recent marine barge orders, our marine backlog is over $120 million with production extending into 2018."

Furman concluded, "Greenbrier is a strong and diverse company.  Greenbrier's flexibility and creativity allow us to meet challenging market conditions and we are well-prepared for markets characterized by lower total railcar deliveries.  We are proud of our lower cost, flexible manufacturing capacity, diversified product and customer mix, strong balance sheet and backlog. Greenbrier's strategic transformation has positioned us to execute on future opportunities, which we believe will lead to continued growth and, ultimately, best position the company to increase shareholder value."

Business Outlook

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

  • New railcar deliveries to be approximately 20,000 – 21,000 units
  • Revenue of approximately $2.8 billion
  • Diluted EPS in the range of $5.70 to $5.90

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


Q3 FY16

Q2 FY16

Sequential Comparison – Main Drivers

Revenue

$612.9M

$669.1M

Down 8.4% primarily due to lower volume of sales from acquired railcar portfolio and lower wheel volumes

Gross margin

20.7%

17.9%

Up 280 bps due primarily to manufacturing efficiencies, a favorable product mix and higher scrap pricing

Selling and

administrative expense

$43.3M

$38.2M

Up 13.4% primarily attributed to higher employee related costs including long-term incentive compensation

Net gain on disposition

of equipment

$0.3M

$10.7M

Timing of sales fluctuates and is opportunistic

Adjusted EBITDA

$99.5M

$108.2M

Down 8.0% due to lower deliveries

Effective tax rate

27.9%

28.3%

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

Net earnings attributable

to noncontrolling interest

$24.2M

$21.3M

Driven by timing of deliveries and higher margin from our GIMSA JV

Net earnings

$35.4M

$44.9M


Diluted EPS

$1.12

$1.41


 

Segment Summary


Q3 FY16

Q2 FY16

Sequential Comparison – Main Drivers

Manufacturing

  Revenue

$458.5M

$454.5M

Up 0.9% primarily due to improved efficiencies and a change in mix partially offset by lower deliveries  

  Gross margin

23.1%

20.4%

Up 270 bps primarily due to a change in product mix

  Operating margin (1)

20.2%

17.3%


  Deliveries

4,300

4,500


Wheels & Parts

  Revenue

$78.4M

$90.5M

Down 13.4% primarily attributable to lower wheel and component volumes

  Gross margin

11.0%

10.0%

Up 100 bps primarily due to higher scrap pricing and a more favorable product mix

  Operating margin (1)

7.4%

7.2%


Leasing & Services

  Revenue

$76.0M

$124.1M

Decline due to lower volume of sales from acquired railcar portfolio

  Gross margin

16.8%

14.6%

Up due to lower volume of sales from acquired railcar portfolio, which is dilutive; excluding this activity, gross margin is 51.2% in Q3 and 51.1% in Q2

  Operating margin (1) (2)

10.9%

19.7%

Q2 benefitted from higher gains on disposition of equipment

 Lease fleet utilization

94.9%

95.4%

Excludes newly manufactured railcars not yet on lease and the acquired railcar portfolio



(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 third quarter 2016 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website.  Teleconference details are as follows:

  • July 6, 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 260,000 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 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; inability to convert backlog of railcar orders and obtain and execute lease syndication commitments; 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)



May 31,

2016

February 29,

2016

November 30,

2015

August 31,

2015

May 31,
2015

Assets






   Cash and cash equivalents

$    214,440

$    283,541

$    197,633

$    172,930

$       122,783

   Restricted cash

8,669

8,877

9,818

8,869

8,912

   Accounts receivable, net 

213,510

228,072

237,213

196,029

214,890

   Inventories

458,068

421,243

444,023

445,535

426,655

   Leased railcars for syndication

136,812

179,975

238,911

212,534

213,197

   Equipment on operating leases, net

232,791

235,171

252,641

255,391

257,962

   Property, plant and equipment, net

318,010

310,019

307,196

303,135

285,570

   Investment in unconsolidated affiliates

89,297

86,850

86,658

87,270

91,217

   Intangibles and other assets, net

71,022

73,296

76,157

65,554

62,664

   Goodwill

43,265

43,265

43,265

43,265

43,265


$ 1,785,884

$ 1,870,309

$ 1,893,515

$ 1,790,512

$    1,727,115







Liabilities and Equity






   Revolving notes

$                -

$      75,000

$    163,888

$      50,888

$         92,507

   Accounts payable and accrued liabilities

370,652

401,010

384,670

455,213

405,544

   Deferred income taxes

50,390

55,204

63,483

60,657

75,572

   Deferred revenue

68,158

84,362

42,351

33,836

24,209

   Notes payable

306,808

322,539

324,668

326,429

346,279







   Total equity - Greenbrier

840,086

800,940

771,945

732,838

672,396

   Noncontrolling interest

149,790

131,254

142,510

130,651

110,608

   Total equity

989,876

932,194

914,455

863,489

783,004


$ 1,785,884

$  1,870,309

$ 1,893,515

$ 1,790,512

$    1,727,115

 

THE GREENBRIER COMPANIES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts, unaudited)





Three Months Ended

May 31,

Nine Months Ended

May 31,


2016


2015


2016


2015


Revenue









        Manufacturing

$              458,494


$        593,376


$   1,611,686


$   1,478,566


        Wheels & Parts

78,417


97,407


247,604


286,671


        Leasing & Services

75,955


23,823


225,044


74,576



612,866


714,606


2,084,334


1,839,813


Cost of revenue









        Manufacturing

352,775


465,658


1,247,635


1,184,922


        Wheels & Parts

69,818


89,645


224,208


259,285


        Leasing & Services

63,175


10,017


180,737


32,942



485,768


565,320


1,652,580


1,477,149











Margin

127,098


149,286


431,754


362,664











Selling and administrative expense

43,280


45,595


118,073


112,223


Net gain on disposition of equipment

(311)


(720)


(11,326)


(924)


Earnings from operations

84,129


104,411


325,007


251,365











Other costs









        Interest and foreign exchange

3,712


4,285


10,565


9,355


Earnings before income tax and earnings from unconsolidated affiliates

80,417


100,126


314,442


242,010











Income tax expense

(22,449)


(30,783)


(92,902)


(76,209)


Earnings before earnings from unconsolidate affiliates

57,968


69,343


221,540


165,801











Earnings from unconsolidated affiliates

1,564


982


2,921


1,552











Net earnings

59,532


70,325


224,461


167,353











Net earnings attributable to noncontrolling interest

(24,180)


(27,514)


(74,808)


(41,405)











Net earnings attributable to Greenbrier

$            35,352


$          42,811


$      149,653


$      125,948











Basic earnings per common share:

$                1.22


$              1.54


$           5.13


$            4.58











Diluted earnings per common share:

$                1.12


$              1.33


$            4.67


$            3.91











Weighted average common shares:









        Basic

29,059


27,842


29,182


27,514


        Diluted

32,342


33,000


32,475


33,262











Dividends declared per common share:    

$                 0.20


$              0.15


$            0.60


$            0.45


                                   

THE GREENBRIER COMPANIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, unaudited) 






Nine Months Ended

May 31,



2016


2015


Cash flows from operating activities:






    Net earnings


$             224,461


$           167,353


    Adjustments to reconcile net earnings to net cash provided by operating activities:






      Deferred income taxes


(10,143)


(5,245)


      Depreciation and amortization


41,681


33,258


      Net gain on disposition of equipment


(11,326)


(924)


     Stock based compensation expense


19,055


13,176


     Noncontrolling interest adjustments


837


20,371


      Other


564


1,008


      (Increase) decrease in assets:






          Accounts receivable, net


(14,333)


(8,769)


          Inventories


(15,346)


(124,906)


          Leased railcars for syndication


28,823


(90,914)


          Other


(5,191)


(1,666)


      Increase (decrease) in liabilities:






          Accounts payable and accrued liabilities


(88,707)


23,135


          Deferred revenue


24,303


3,680


    Net cash provided by operating activities


194,678


29,557


Cash flows from investing activities:






    Proceeds from sales of assets


88,707


4,628


    Capital expenditures


(51,707)


(75,892)


    Decrease in restricted cash


200


228


    Investment in and advances to unconsolidated affiliates


(9,088)


(29,923)


    Cash distribution from unconsolidated affiliates


5,338


715


    Net cash provided by (used in) investing activities


33,450


(100,244)


Cash flows from financing activities:






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


(49,000)


73,000


   Proceeds from revolving notes with maturities longer than 90 days


-


42,563


   Repayments of revolving notes with maturities longer than 90 days


(1,888)


(36,137)


    Repayments of notes payable


(19,461)


(5,504)


   Debt issuance costs


(4,160)


-


    Repurchase of stock


(33,498)


(48,451)


    Dividends


(17,362)


(12,069)


    Decrease in restricted cash


-


11,000


   Cash distribution to joint venture partner


(62,710)


(12,489)


    Investment by joint venture partner


5,400


-


   Excess tax benefit from restricted stock awards


2,786


2,964


    Other


(7)


(248)


   Net cash provided by (used in) financing activities


(179,900)


14,629


Effect of exchange rate changes


(6,718)


(6,075)


Increase (decrease) in cash and cash equivalents


41,510


(62,133)


Cash and cash equivalents






    Beginning of period


172,930


184,916


    End of period


$             214,440


$           122,783


 

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

 (In thousands, except per share amounts, unaudited)










Operating Results by Quarter for 2016 are as follows:


First


Second


Third


Total











Revenue









   Manufacturing

$          698,661


$       454,531


$        458,494


$       1,611,686


   Wheels & Parts

78,729


90,458


78,417


247,604


   Leasing & Services

24,999


124,090


75,955


225,044



802,389


669,079


612,866


2,084,334


Cost of revenue









   Manufacturing

533,033


361,827


352,775


1,247,635


   Wheels & Parts

73,002


81,388


69,818


224,208


   Leasing & Services

11,589


105,973


63,175


180,737



617,624


549,188


485,768


1,652,580











Margin

184,765


119,891


127,098


431,754











Selling and administrative expense

36,549


38,244


43,280


118,073


Net gain on disposition of equipment

(269)


(10,746)


(311)


(11,326)


Earnings from operations

148,485


92,393


84,129


325,007











Other costs









   Interest and foreign exchange

5,436


1,417


3,712


10,565


Earnings before income tax and earnings from unconsolidated affiliates          

143,049


90,976


80,417


314,442


Income tax expense

(44,719)


(25,734)


(22,449)


(92,902)


Earnings before earnings from unconsolidated affiliates

98,330


65,242


57,968


221,540


Earnings from unconsolidated affiliates

383


974


1,564


2,921


Net earnings

98,713


66,216


59,532


224,461


Net earnings attributable to noncontrolling interest

(29,280)


(21,348)


(24,180)


(74,808)











Net earnings attributable to Greenbrier

$           69,433


$        44,868


$           35,352


$         149,653











Basic earnings per common share (1)

$                2.36


$            1.54


$              1.22


$               5.13


Diluted earnings per common share (1)

$                2.15


$            1.41


$              1.12


$               4.67




(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 May 31, 2016:











Revenue


Earnings (loss) from operations



External


Intersegment


  Total


External


Intersegment


Total


Manufacturing

$          458,494


$               5,595


$         464,089


$           92,713


$                  923


$      93,636


Wheels & Parts

78,417


10,058


88,475


5,811


711


6,522


Leasing & Services

75,955


601


76,556


8,298


601


8,899


Eliminations

-


(16,254)


(16,254)


-


(2,235)


(2,235)


Corporate

-


-


-


(22,693)


-


(22,693)



$           612,866


$                      -


$         612,866


$           84,129


$                       -


$       84,129















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
















Total assets











May 31,

2016


February 29,

2016


(In thousands)



Manufacturing

$              641,090


$           624,961


Wheels & Parts

301,474


307,724


Leasing & Services

523,989


551,763


Unallocated

319,331


385,861



$           1,785,884


$         1,870,309


 


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     



           May 31,                     February 29,

             2016                              2016     



Revenue

$                  95,700


$                97,700



Earnings from operations

$                    3,000


$                  3,600



Total assets

$                255,400


$              247,700








 


THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

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


Reconciliation of Net earnings to Adjusted EBITDA





Three Months Ended






May 31,

2016


February 29,

2016



Net earnings

$             59,532


$           66,216



Interest and foreign exchange

3,712


1,417



Income tax expense

22,449


25,734



Depreciation and amortization

13,839


14,868











Adjusted EBITDA

$               99,532


$        108,235













Three Months

Ended

May 31, 2016



Backlog Activity (units)






Beginning backlog

34,100



Orders received

1,700



Production held as Leased railcars for syndication

(1,100)



Production sold directly to third parties

(3,500)



Ending backlog

31,200







Delivery Information (units)




Production sold directly to third parties

3,500



Sales of Leased railcars for syndication

800



Total deliveries

4,300



 

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


May 31, 2016

February 29,

2016

Weighted average basic common shares outstanding (1)

29,059

29,098

Dilutive effect of convertible notes (2)

3,224

3,203

Dilutive effect of performance awards (3)

59

59

Weighted average diluted common shares outstanding

32,342

32,360




(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


May 31,

2016

February 29,

2016

Net earnings attributable to Greenbrier

$            35,352

$           44,868

Add back:



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

733

733

Earnings before interest and debt issuance costs on convertible notes

$           36,085

$          45,601

Weighted average diluted common shares outstanding

32,342

32,360




Diluted earnings per share

$               1.12

$              1.41

 

 

SOURCE The Greenbrier Companies, Inc. (GBX)