)

Greenbrier Reports Second Quarter Results

Date

Tue, Apr 6, 2021 06:00 AM

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~ Strong liquidity positions Greenbrier for upcoming recovery
~~ Orders for 3,800 new railcars valued at over $440 million - book-to-bill of 1.8x in the quarter
~~ Backlog expanded to 24,900 units with estimated value of $2.5 billion
~~ Trailing effects of COVID-19 and inclement weather produced a net loss attributable to Greenbrier of $9 million
~~ Completed formation of GBX Leasing joint venture

LAKE OSWEGO, Ore., April 6, 2021 /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE: GBX) ("Greenbrier"), a leading international supplier of equipment and services to global freight transportation markets, today reported financial results for its second fiscal quarter ended February 28, 2021.

Second Quarter Highlights

  • New railcar orders for 3,800 units valued at over $440 million during the quarter. Deliveries in the quarter were 2,100 units, a 1.8x book-to-bill.
  • Diversified new railcar backlog as of February 28, 2021 was 24,900 units with an estimated value of $2.5 billion.
  • Immediate liquidity of $708 million, includes $593 million in cash and $115 million of available borrowing capacity.  Combined with nearly $100 million of liquidity initiatives in progress totals over $800 million.
  • Operating cash flow in the quarter included inventory accumulation of $48 million to support manufacturing production increases beginning in fiscal Q3 and a $44 million increase in leased railcars for syndication.
  • COVID-19 related expenses for the quarter were $2.5 million (pre-tax) and $6.4 million (pre-tax) for the first half of fiscal 2021.
  • Net loss attributable to Greenbrier for the quarter was $9 million, or $0.28 per diluted share, on revenue of $296 million.  The net loss included $16 million in anticipated federal income tax benefit resulting from loss carryback provisions.
  • Adjusted EBITDA for the quarter was negative $1 million.
  • Subsequent to quarter-end, completed the earlier announced formation of GBX Leasing joint venture, including initial funding of nearly $100 million from a new $300 million non-recourse railcar warehouse credit facility.
  • Board declares a quarterly dividend of $0.27 per share, payable on May 12, 2021 to shareholders as of April 21, 2021 representing Greenbrier's 28th consecutive quarterly dividend.

William A. Furman, Chairman & CEO commented, "Greenbrier navigated what we expect will be our most challenging quarter of the fiscal year.  Operating challenges emerged from a range of sources, including winter weather, impacting deliveries and production.  Our near-term outlook is becoming increasingly optimistic as rail fundamentals improve.  Rail loadings are up year-to-date, driven by increased traffic in grain, intermodal and other categories.  Railroad velocity has slowed by nearly two miles per hour. Railcars in storage have decreased by more than 148,000 units from the 2020 peak storage level.  Proposed environmental and other regulations in both North America and Europe should support secular demand for rail as a growing mode for freight transport. Fiscal stimulus and proposed infrastructure legislation are expected to further add to demand."

Furman concluded, "Greenbrier is well-positioned for an economic recovery. Our pipeline of new business inquiries in North America has expanded dramatically in the last 30 days. Greenbrier's ability to adjust production capacity to meet our market outlook enables us to rapidly ramp manufacturing as we earn new railcar orders.  We have already restarted several production lines supported by firm orders to meet increased demand."

Business Update & Outlook

Greenbrier has practiced disciplined management to meet the realities of this historic time.  Our core strategy since March 2020 has been and continues to be:

  1. Maintain a strong liquidity base and balance sheet
  2. Navigate the COVID-19 pandemic and the related economic crisis by safely operating our factories while generating cash
  3. Prepare for emerging economic recovery and forward momentum in our markets, which we expect to expand during the latter half of calendar 2021. Greenbrier is currently operating in this phase.

Looking ahead, Greenbrier expects the second half of fiscal 2021 to be stronger than the first half, reflecting increased production rates and stronger activity across the business.  Greenbrier's ability to achieve more than $700 million of total liquidity, with another $100 million of initiatives in process, allows us to weather unanticipated setbacks in the emerging economic recovery. Our $2.5 billion backlog provides a baseload of orders to support continuous production lines.  These factors position us to deploy our balance sheet opportunistically, as we have done with GBX Leasing.  The recently-announced joint venture complements Greenbrier's existing commercial platform and will create stable, tax-advantaged cash flows, reducing our exposure to the new railcar order and delivery cycle.

Financial Summary


Q2 FY21

Q1 FY21

Sequential Comparison – Main Drivers

Revenue

$295.6M

$403.0M

37% fewer deliveries reflecting weak demand
environment and extreme winter weather

Gross margin

6.0%

10.1%

Selling and administrative

$43.4M

$43.7M

Maintaining cost discipline

Adjusted EBITDA

($1.3M)

$23.2M

Low new railcar deliveries and weak NA environment

Effective tax rate

61.6%

55.5%

Tax benefit from lease fleet investments and operating
losses carried back to prior years with higher tax rates
under the CARES Act

Net (earnings) loss attributable to
noncontrolling interest

4.9M

($3.3M)

Operating loss from fewer deliveries at GIMSA joint
venture

Net loss attributable to
Greenbrier

($9.1M)

($10.0M)

Lower operating activity reflecting fewer deliveries
partially offset by income tax benefit

Diluted EPS

($0.28)

($0.30)


Segment Summary


Q2 FY21

Q1 FY21

Sequential Comparison – Main Drivers

Manufacturing

  Revenue

$202.1M

$308.7M

Fewer deliveries reflecting weak demand environment
and winter weather closures

  Gross margin

0.2%

9.0%

  Operating margin (1)

(8.5%)

3.1%

  Deliveries (2)

1,700

2,700


Wheels, Repair & Parts

  Revenue

$71.6M

$65.6M

Modestly increased wheel volumes from winter
weather and improved scrap pricing partially offset by
continued decreased Repair volumes

  Gross margin

6.9%

3.9%

Improved volume in Wheel Services partially offset
by weak Repair activity

  Operating margin (1)

3.4%

(0.3%)


Leasing & Services

  Revenue

$21.9M

$28.7M

Prior quarter had externally sourced syndication
activity which increases revenue but is dilutive to
gross margin %

  Gross margin

56.6%

35.8%

More normalized gross margin activity

  Operating margin (1) (3)

29.3%

20.5%

Strong gross margin performance

  Fleet utilization

94.8%

93.3%



(1)

See supplemental segment information on page 12 for additional information.

(2)

Excludes Brazil deliveries which are not consolidated into manufacturing revenue and margins.

(3)

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 2021 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. 

Teleconference details are as follows:

  • April 6, 2021
  • 8:00 a.m. Pacific Daylight Time
  • Phone: 1-888-317-6003 (Toll Free) 1-412-317-6061 (International), Entry Number "7592105"
  • Real-time Audio Access:  ("Newsroom" at http://www.gbrx.com)

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

About Greenbrier

Greenbrier, headquartered in Lake Oswego, Oregon, is a leading international supplier of equipment and services to global freight transportation markets. Greenbrier designs, builds and markets freight railcars and marine barges in North America. Greenbrier Europe is an end-to-end freight railcar manufacturing, engineering and repair business with operations in Poland, Romania and Turkey that serves customers across Europe and in the nations of the Gulf Cooperation Council. Greenbrier builds freight railcars and rail castings in Brazil through two separate strategic partnerships. We are a leading provider of freight railcar wheel services, parts, repair, refurbishment and retrofitting services in North America through our wheels, repair & parts business unit.  Greenbrier offers railcar management, regulatory compliance services and leasing services to railroads and related transportation industries in North America. Through unconsolidated joint ventures, we produce industrial and rail castings, and other components. Greenbrier owns a lease fleet of 8,700 railcars and performs management services for 445,000 railcars. Learn more about Greenbrier at www.gbrx.com.  

 

THE GREENBRIER COMPANIES, INC.

Consolidated Balance Sheets

(In thousands, unaudited)



February 28,
2021

November 30,
2020

August 31,

2020

May 31,

2020

February 29,

2020

Assets






   Cash and cash equivalents

$       593,499

$       724,547

$       833,745

$       735,258

$       169,899

   Restricted cash

8,614

8,547

8,342

8,704

8,569

   Accounts receivable, net 

236,171

216,220

230,488

261,629

325,056

   Income tax receivable   

62,103

24,448

9,109

-

1,173

   Inventories

522,984

490,282

529,529

675,442

709,115

   Leased railcars for syndication

109,287

51,087

107,671

136,144

255,073

   Equipment on operating leases, net

445,451

445,542

350,442

355,841

385,974

   Property, plant and equipment, net

687,468

696,333

711,524

719,155

723,326

   Investment in unconsolidated affiliates

70,820

72,254

72,354

75,508

79,082

   Intangibles and other assets, net

190,283

186,509

190,322

181,315

160,709

   Goodwill

132,685

130,315

130,308

130,035

129,684


$   3,059,365

$   3,046,084

$   3,173,834

$   3,279,031

$   2,947,660







Liabilities and Equity






   Revolving notes

$       275,839

$       276,248

$       351,526

$       416,535

$         37,196

   Accounts payable and accrued liabilities

448,571

434,138

463,880

488,969

499,898

   Deferred income taxes

24,798

10,120

7,701

4,354

9,173

   Deferred revenue

42,572

36,916

42,467

63,536

70,869

   Notes payable, net

793,189

797,089

804,088

806,919

811,860







Contingently redeemable noncontrolling          interest

30,037

30,711

31,117

30,611

30,782







   Total equity – Greenbrier

1,268,502

1,280,407

1,293,043

1,291,221

1,286,472

   Noncontrolling interest

175,857

180,455

180,012

176,886

201,410

   Total equity

1,444,359

1,460,862

1,473,055

1,468,107

1,487,882


$   3,059,365

$   3,046,084

$   3,173,834

$   3,279,031

$   2,947,660

 

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Operations

(In thousands, except per share amounts, unaudited)



Three Months Ended


Six Months Ended



February 28,


February 29,


February 28,


February 29,



2021


2020


2021


2020


Revenue









        Manufacturing

$        202,094


$       489,943


$        510,816


$     1,147,310


        Wheels, Repair & Parts

71,623


91,225


137,179


177,833


        Leasing & Services

21,905


42,680


50,616


68,064



295,622


623,848


698,611


1,393,207


Cost of revenue









        Manufacturing

201,771


422,309


482,661


1,004,221


        Wheels, Repair & Parts

66,667


84,373


129,651


166,265


        Leasing & Services

9,513


30,830


27,957


44,196



277,951


537,512


640,269


1,214,682











Margin

17,671


86,336


58,342


178,525











Selling and administrative expense

43,425


54,597


87,132


108,961


Net gain on disposition of equipment

(27)


(6,697)


(949)


(10,656)


Earnings (loss) from operations

(25,727)


38,436


(27,841)


80,220











Other costs









Interest and foreign exchange

9,568


12,609


20,671


25,461


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

(35,295)


25,827


(48,512)


54,759


Income tax benefit (expense)

21,752


(7,463)


29,084


(13,457)


Earnings (loss) before earnings (loss) from 

   unconsolidated affiliates

(13,543)


18,364


(19,428)


41,302


Earnings (loss) from unconsolidated affiliates

(378)


1,651


(1,122)


2,724


Net earnings (loss)

(13,921)


20,015


(20,550)


44,026


Net (earnings) loss attributable to noncontrolling interest

4,856


(6,386)


1,513


(22,728)











Net earnings (loss) attributable to Greenbrier

$              (9,065)


$         13,629


$           (19,037)


$           21,298











Basic earnings (loss) per common share:

$             (0.28)


$            0.42


$               (0.58)


$                0.65











Diluted earnings (loss) per common share:

$                (0.28)


$            0.41


$               (0.58)


$                0.64











Weighted average common shares:









Basic

32,810


32,661


32,766


32,645


Diluted

32,810


33,482


32,766


33,382











Dividends per common share

$                 0.27


$                0.27


$                 0.54


$                0.52














 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

(In thousands, except per share amounts, unaudited)


Operating Results by Quarter for 2021 are as follows:



First


Second


Total









Revenue







   Manufacturing

$    308,722


$    202,094


$     510,816


   Wheels, Repair & Parts

65,556


71,623


137,179


   Leasing & Services

28,711


21,905


50,616



402,989


295,622


698,611


Cost of revenue







   Manufacturing

280,890


201,771


482,661


   Wheels, Repair & Parts

62,984


66,667


129,651


   Leasing & Services

18,444


9,513


27,957



362,318


277,951


640,269









Margin

40,671


17,671


58,342









Selling and administrative expense

43,707


43,425


87,132


Net gain on disposition of equipment

(922)


(27)


(949)


Loss from operations

(2,114)


(25,727)


(27,841)









Other costs







Interest and foreign exchange

11,103


9,568


20,671


Loss before income tax and loss from unconsolidated

affiliates

(13,217)


(35,295)


(48,512)


Income tax benefit

7,332


21,752


29,084


Loss before loss from unconsolidated affiliates

(5,885)


(13,543)


(19,428)


Loss from unconsolidated affiliates

(744)


(378)


(1,122)









Net Loss

(6,629)


(13,921)


(20,550)


Net (earnings) loss attributable to noncontrolling interest

(3,343)


4,856


1,513









Net Loss attributable to Greenbrier

$        (9,972)


$        (9,065)


$     (19,037)









Basic loss per common share (1)

$          (0.30)


$          (0.28)


$          (0.58)









Diluted loss per common share (1)

$          (0.30)


$          (0.28)


$          (0.58)









Dividends per common share

$           0.27


$           0.27


$           0.54



(1)

Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated by including the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved.

 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

(In thousands, except per share amounts, unaudited)


Operating Results by Quarter for 2020 are as follows:



First


Second


Third


Fourth


Total













Revenue











   Manufacturing

$    657,367


$    489,943


$        653,007


$         549,654


$ 2,349,971


   Wheels, Repair & Parts

86,608


91,225


82,024


64,813


324,670


   Leasing & Services

25,384


42,680


27,526


21,958


117,548



769,359


623,848


762,557


636,425


2,792,189


Cost of revenue











   Manufacturing

581,912


422,309


562,793


498,155


2,065,169


   Wheels, Repair & Parts

81,892


84,373


75,001


60,923


302,189


   Leasing & Services

13,366


30,830


17,232


10,272


71,700



677,170


537,512


655,026


569,350


2,439,058













Margin

92,189


86,336


107,531


67,075


353,131













Selling and administrative expense

54,364


54,597


49,494


46,251


204,706


Net gain on disposition of equipment

(3,959)


(6,697)


(8,775)


(573)


(20,004)


Earnings from operations

41,784


38,436


66,812


21,397


168,429













Other costs











Interest and foreign exchange

12,852


12,609


7,562


10,596


43,619


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

28,932


25,827


59,250


10,801


124,810


Income tax expense

(5,994)


(7,463)


(24,421)


(2,306)


(40,184)


Earnings before earnings (loss) from unconsolidated affiliates

22,938


18,364


34,829


8,495


84,626


Earnings (loss) from unconsolidated affiliates

1,073


1,651


1,040


(804)


2,960













Net earnings

24,011


20,015


35,869


7,691


87,586


Net earnings attributable to noncontrolling interest

(16,342)


(6,386)


(8,097)


(7,794)


(38,619)


Net earnings (loss) attributable to Greenbrier

$         7,669


$       13,629


$       27,772


$           (103)


$      48,967













Basic earnings per common share (1)

$           0.24


$           0.42


$           0.85


$          (0.00)


$           1.50













Diluted earnings per common share (1)

$           0.23


$           0.41


$           0.83


$          (0.00)


$           1.46













Dividends per common share

$           0.25


$           0.27


$           0.27


$          0.27


$           1.06



(1)

Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated by including the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved.

 

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Cash Flows

(In thousands, unaudited) 





Six Months Ended





February 28,



February 29,





2021



2020


Cash flows from operating activities








    Net earnings (loss)


$

(20,550)


$

44,026


    Adjustments to reconcile net earnings (loss) to net cash used in

     operating activities:








      Deferred income taxes



16,969



(6,714)


      Depreciation and amortization



50,868



59,338


      Net gain on disposition of equipment



(949)



(10,656)


      Accretion of debt discount



2,857



2,718


      Stock based compensation expense



8,951



7,237


     Noncontrolling interest adjustments



(1,285)



9,038


      Other



1,135



(39)


      Decrease (increase) in assets:








          Accounts receivable, net



(10,735)



47,282


          Income tax receivable



(52,994)



(1,173)


          Inventories



(35,005)



(55,158)


          Leased railcars for syndication



(37,988)



(123,033)


          Other assets



(2,895)



(39,433)


      Increase (decrease) in liabilities:








          Accounts payable and accrued liabilities



(13,257)



(67,988)


          Deferred revenue



104



1,381


    Net cash used in operating activities



(94,774)



(133,174)


Cash flows from investing activities








    Proceeds from sales of assets



11,336



41,827


    Capital expenditures



(50,353)



(40,834)


   Investments in and advances to/repayments from unconsolidated affiliates



4,523



(1,500)


   Cash distribution from unconsolidated affiliates and other



488



11,273


    Net cash provided by (used in) investing activities



(34,006)



10,766


Cash flows from financing activities








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



98,442



10,246


    Proceeds from revolving notes with maturities longer than 90 days



112,000



-


   Repayments of revolving notes with maturities longer than 90 days



(286,000)



-


   Repayments of notes payable



(14,990)



(17,120)


    Dividends



(18,046)



(17,312)


    Cash distribution to joint venture partner



(3,646)



(8,706)


    Tax payments for net share settlement of restricted stock



(2,357)



(1,895)


    Net cash used in financing activities



(114,597)



(34,787)


Effect of exchange rate changes



3,403



(2,824)


Decrease in cash, cash equivalents and restricted cash



(239,974)



(160,019)


Cash and cash equivalents and restricted cash








    Beginning of period



842,087



338,487


    End of period


$

602,113


$

178,468


Balance Sheet Reconciliation








    Cash and cash equivalents


$

593,499


$

169,899


    Restricted cash



8,614



8,569


    Total cash and cash equivalents and restricted cash as presented above


$

602,113


$

178,468


 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

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

Reconciliation of Net loss to Adjusted EBITDA



Three Months Ended



February 28,

2021


November 30,

2020


Net loss

$            (13,921)


$              (6,629)


Interest and foreign exchange

9,568


11,103


Income tax benefit

(21,752)


(7,332)


Depreciation and amortization

24,822


26,046


Adjusted EBITDA

$             (1,283)


$             23,188








 


Three Months
Ended


February 28,

2021

Backlog Activity (units) (1)





Beginning backlog

23,900


Orders received

3,800


Production held as Leased railcars for syndication

(800)


Production sold directly to third parties

(2,000)


Ending backlog

24,900





Delivery Information (units) (1)



Production sold directly to third parties

2,000


Sales of Leased railcars for syndication

100


Total deliveries

2,100



(1)

Includes Greenbrier-Maxion, our Brazilian railcar manufacturer, which is accounted for under the equity method

 

THE GREENBRIER COMPANIES, INC.

Supplemental Leasing Information

(In thousands, except owned and managed fleet, unaudited)



February 28,

2021


November 30,

2020

Owned fleet

8,700


8,400

Managed fleet

445,000


407,000

Owned fleet utilization

95%


93%






February 28,

2021


November 30,

2020

Leased railcars for syndications

$                    109,287


$                      51,087

Equipment on operating lease

445,451


445,542

Total

$                    554,738


$                    496,629





Leasing non-recourse debt

$                    204,722


$                   206, 629

Recourse debt

588,467


590,460

Total debt

$                    793,189


$                    797,089





Fleet leverage %(1)

37%


42%


(1)

Leasing non-recourse debt / Sum of leased railcars for syndication and equipment on operating lease

 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

(In thousands, unaudited)


Segment Information


Three months ended February 28, 2021:











Revenue


Earnings (loss) from operations



External


Intersegment


  Total


External


Intersegment


Total


Manufacturing

$           202,094


$               2,425


$         204,519


$          (17,216)


$                  100


$      (17,116)


Wheels, Repair & Parts

71,623


1,603


73,226


2,433


(14)


2,419


Leasing & Services

21,905


1,113


23,018


6,420


634


7,054


Eliminations

-


(5,141)


(5,141)


-


(720)


(720)


Corporate

-


-


-


(17,364)


-


(17,364)



$           295,622


$                      -


$         295,622


$          (25,727)


$                      -


$     (25,727)












Three months ended November 30, 2020:











Revenue


Earnings (loss) from operations



External


Intersegment


  Total


External


Intersegment


Total


Manufacturing

$           308,722


$             20,591


$         329,313


$             9,686


$               2,505


$       12,191


Wheels, Repair & Parts

65,556


301


65,857


(200)


(9)


(209)


Leasing & Services

28,711


4,665


33,376


5,890


4,285


10,175


Eliminations

-


(25,557)


(25,557)


-


(6,781)


(6,781)


Corporate

-


-


-


(17,490)


-


(17,490)



$           402,989


$                      -


$         402,989


$            (2,114)


$                      -


$       (2,114)






Total assets





   February 28,
2021


November 30,

2020


Manufacturing

$              1,313,819


$              1,264,616


Wheels, Repair & Parts

277,788


274,534


Leasing & Services

851,546


758,820


Unallocated

616,212


748,114



$              3,059,365


$              3,046,084


"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:  This press release may contain forward-looking statements, including any statements that are not purely statements of historical fact. Greenbrier uses words, and variations of words, such as  "adjust," "become," "continue," "expect," "maintain," "outlook," "position," "should," "will," and similar expressions to identify forward-looking statements. These forward-looking statements include, without limitation, statements about backlog, and future liquidity and cash flow as well as other information regarding future performance and strategies and appear throughout this press release including in the headlines and the section "Business Update & Outlook." 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, the following. (1) We are unable to predict when, how, or with what magnitude COVID-19 governmental reaction to the pandemic, and related economic disruptions will negatively impact our business: we may be prevented from operating our facilities; the operations of our customers may be disrupted increasing the likelihood that our customers may attempt to delay, defer or cancel orders,  or cease to operate as going concerns; the operations of our suppliers may be disrupted; our indebtedness may increase; we may breach the covenants in our credit agreement; the market price of our common stock may drop or remain volatile; we may incur significant employee health care costs under our self-insurance programs. The longer the pandemic continues, the more likely that negative impacts on our business will occur, some of which we cannot now foresee. (2) Our backlog of railcar units and marine vessels is not necessarily indicative of future results of operations. Certain orders in backlog are subject to customary documentation which may not occur. Customers may attempt to cancel or modify orders or refuse to accept and pay for products. The likelihood of cancellations, modifications, rejection and non-payment for our products generally increases during periods of market weakness. The timing of converting backlog to revenue is also materially impacted by our decision whether to lease railcars, sell railcars, or syndicate railcars with a lease attached to an investor. (3) Our joint ventures, including our leasing joint venture, may not perform as anticipated or expected. More information on potential factors that could cause our results to differ from our forward-looking statements is included in the Company's filings with the SEC, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's most recently filed periodic report on Form 10-K and subsequent report on 10-Q. Except as otherwise required by law, the Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date hereof.

Adjusted Financial Metric Definitions

Adjusted EBITDA, Adjusted net earnings (loss) attributable to Greenbrier and Adjusted diluted EPS are not financial measures under generally accepted accounting principles (GAAP). These metrics are performance measurement tools used by rail supply companies and Greenbrier. You should not consider these metrics in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because these metrics are not a measure of financial performance under GAAP and are susceptible to varying calculations, the measures presented may differ from and may not be comparable to similarly titled measures used by other companies.

We define Adjusted EBITDA as Net earnings (loss) before Interest and foreign exchange, Income tax benefit (expense), Depreciation and amortization and excluding the impact associated with items we do not believe are indicative of our core business or which affect comparability. We believe the presentation of Adjusted EBITDA provides useful information as it excludes the impact of financing, foreign exchange, income taxes and the accounting effects of capital spending. These items may vary for different companies for reasons unrelated to the overall operating performance of a company's core business. We believe this assists in comparing our performance across reporting periods.

Adjusted net earnings (loss) attributable to Greenbrier and Adjusted diluted EPS excludes the impact associated with items we do not believe are indicative of our core business or which affect comparability. We believe this assists in comparing our performance across reporting periods.

 

SOURCE The Greenbrier Companies, Inc.