)

Greenbrier Reports Second Quarter Results

Date

Fri, Apr 5, 2019 06:00 AM

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LAKE OSWEGO, Ore., April 5, 2019 /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE: GBX) today reported financial results for its second fiscal quarter ended February 28, 2019.

The Greenbrier Companies Logo (PRNewsfoto/The Greenbrier Companies, Inc.)

Second Quarter Highlights

  • Net earnings attributable to Greenbrier for the quarter were $2.8 million, or $0.08 per diluted share, on revenue of $658.7 million.  Quarterly results included $4.7 million, or $0.14 per diluted share, related to loss accruals on certain railcar contracts and facility closure costs in the railcar repair operations.
  • Adjusted EBITDA for the quarter was $37.4 million, or 5.7% of revenue, and included $7.6 million related to railcar contract loss accruals and facility closure costs.
  • Orders for 3,800 diversified railcars were received during the quarter, valued at nearly $450 million.
  • New railcar backlog as of February 28, 2019 was 26,000 units with an estimated value of $2.7 billion.
  • New railcar deliveries totaled 5,100 units for the quarter.
  • Board declares quarterly dividend of $0.25 per share, payable on May 15, 2019 to shareholders as of April 24, 2019.

William A. Furman, Chairman and CEO, said, "Order activity, railcar deliveries and revenue generation highlighted Greenbrier's fiscal second quarter.  However, our earnings performance was underwhelming, reflecting what we believe will be a single disappointing quarter.  Greenbrier's fiscal second quarter was expected to be the least profitable of fiscal 2019.  Planned production line changeovers temporarily reduced manufacturing efficiency in the quarter.  These expected operating disruptions were compounded by the railcar contract loss accruals in Europe and Gunderson and the facility closure costs in our railcar repair network that we communicated on March 22.  Greenbrier is actively addressing these performance issues.  We expect to quickly resolve them."

Furman concluded, "Over the balance of fiscal 2019, Greenbrier's financial performance and profitability will significantly improve compared to the first half of fiscal 2019.  As a result, revenue and delivery estimates for fiscal 2019 are unchanged and we have updated EPS guidance today to reflect the impact of the unique operating challenges in the fiscal second quarter.  Greenbrier's backlog of 26,000 units valued at $2.7 billion will produce sustained railcar deliveries through fiscal 2019 and provides good visibility into fiscal 2020.  Our strong balance sheet, manufacturing flexibility and product innovation position us to successfully address a dynamic market environment and continue to grow at scale.  We remain confident in Greenbrier's long-term growth strategy and integrated business model."

Fiscal 2019 Business Update

With approximately 95% of fiscal 2019 production in backlog, and based on current business trends, Greenbrier believes:

  • Deliveries will be approximately 24,000 – 26,000 units including Greenbrier-Maxion (Brazil) (which will account for approximately 2,000 units).
  • Revenue will exceed $3.0 billion.
  • Diluted EPS will be $3.60 - $3.80 excluding the $0.14 per share related to railcar contract loss accruals and closure costs in the fiscal second quarter.

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

Financial Summary


Q2 FY19

Q1 FY19

Sequential Comparison – Main Drivers

Revenue

$658.7M

$604.5M

Up 9.0% primarily due to increased external syndication activity and higher wheel and component volumes

Gross margin

8.2%

12.0%

Decrease driven by lower manufacturing efficiencies, including multiple line change overs, railcar contract loss accruals and closure costs

Selling and

administrative expense

$47.9M

$50.4M

Down 5.0% primarily due to lower employee related costs

Gain on disposition

of equipment

$12.1M

$14.4M

Reflects continued rebalancing of lease portfolio

Adjusted EBITDA

$37.4M

$57.6M

Lower operating earnings including the $7.6 million of closure costs and railcar contract loss accruals in Q2

Effective tax rate

25.5%

28.5%


Earnings (loss) from

unconsolidated affiliates

($0.8M)

$0.5M

Continued volatility in Brazilian operations

Net earnings attributable

to noncontrolling interest

$3.0M

$5.4M

Change primarily impacted by partner share of European losses

Net earnings attributable

to Greenbrier

$2.8M

$18.0M

Change includes $4.7 million from railcar contract loss accruals and closure costs, lower operating earnings and higher foreign exchange losses

Diluted EPS

$0.08

$0.54

Includes $0.14 per share from railcar contract loss accruals and closure costs

Segment Summary


Q2 FY19

Q1 FY19

Sequential Comparison – Main Drivers

Manufacturing

  Revenue

$476.0M

$471.8M

Change primarily driven by mix shift

  Gross margin

6.9%

11.4%

Decrease driven by lower manufacturing efficiencies, including multiple line change overs, and railcar contract loss accruals

  Operating margin (1)

2.9%

7.8%

Primarily reflects lower gross margin

  Deliveries (2)

4,500

4,200


Wheels, Repair & Parts

  Revenue

$125.3M

$108.5M

Up 15.5% primarily attributable to higher wheel and component volumes

  Gross margin

5.4%

7.0%

Down due to lower operating efficiencies and closure costs in Repair network

  Operating margin (1)

2.3%

3.0%


Leasing & Services

  Revenue

$57.4M

$24.2M

Increase driven by higher volume of externally sourced railcar syndications

  Gross margin

24.4%

45.4%

Decrease primarily reflects lower margins on externally sourced railcar syndications; excluding this activity, gross margin would be 51.3%

  Operating margin (1) (3)

36.7%

72.4%

Current quarter includes higher volume of externally sourced railcar syndications which have a lower gross margin

  Lease fleet utilization

97.4%

94.9%




(1) 

See supplemental segment information on page 10 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 2019 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. 

Teleconference details are as follows:

  • April 5, 2019
  • 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, 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, tank heads and other components. Greenbrier owns a lease fleet of 10,600 railcars and performs management services for 372,000 railcars. Learn more about Greenbrier at www.gbrx.com.

"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 such as "affirms," "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 that are not indicative of Greenbrier's financial results; uncertainty or changes in the credit markets and financial services industry; high levels of indebtedness and compliance with the terms of Greenbrier's 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; policies and priorities of the federal government regarding international trade, taxation and infrastructure; 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 Greenbrier's insurance coverage; train derailments or other accidents or claims that could subject Greenbrier to legal claims; actions or inactions by various regulatory agencies including potential environmental remediation obligations or changing tank car or other railcar 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 Greenbrier's Annual Report on Form 10-K for the fiscal year ended August 31, 2018, Greenbrier's Quarterly Report on Form 10-Q for the fiscal quarter ended November 30, 2018, and Greenbrier's 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, Greenbrier does not assume any obligation to update any forward-looking statements.

Adjusted EBITDA, Adjusted net earnings attributable to Greenbrier, Adjusted diluted EPS and Diluted earnings per share range excluding railcar contract loss accruals and closure costs are not financial measures under generally accepted accounting principles (GAAP). These metrics are performance measurement tools commonly 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 before Interest and foreign exchange, Income tax expense (benefit), 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 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. Diluted earnings per share range excluding railcar contract loss accruals and closure costs exclude railcar contract loss accruals and closure costs. We believe these assist in comparing our performance across reporting periods. 

THE GREENBRIER COMPANIES, INC.

Consolidated Balance Sheets

(In thousands, unaudited)



February 28,

2019

November 30,

2018

August 31,

2018

May 31,

2018

February 28,

2018

Assets






   Cash and cash equivalents

$       341,500

$      462,797

$      530,655

$      589,969

$     586,008

   Restricted cash

21,584

8,872

8,819

9,204

8,875

   Accounts receivable, net 

335,732

306,917

348,406

322,328

321,795

   Inventories

574,146

492,573

432,314

396,518

408,419

   Leased railcars for syndication

163,472

233,415

130,926

158,194

168,748

   Equipment on operating leases, net

381,336

317,282

322,855

302,074

258,417

   Property, plant and equipment, net

472,739

461,120

457,196

424,035

429,465

   Investment in unconsolidated affiliates

58,685

58,682

61,414

75,884

98,009

   Intangibles and other assets, net

101,284

95,958

94,668

82,030

83,308

   Goodwill

82,743

77,508

78,211

70,347

69,011


$   2,533,221

$   2,515,124

$   2,465,464

$  2,430,583

$  2,432,055







Liabilities and Equity






   Revolving notes

$         22,323

$         22,189

$         27,725

$        20,337

$          7,990

   Accounts payable and accrued liabilities

474,863

438,304

449,857

447,827

461,088

   Deferred income taxes

29,481

30,631

31,740

36,657

41,257

   Deferred revenue

91,533

108,566

105,954

102,919

85,886

   Notes payable, net

486,107

487,764

436,205

437,833

559,755







Contingently redeemable noncontrolling interest

25,637

28,449

29,768

31,135

33,046







   Total equity - Greenbrier

1,257,818

1,257,631

1,250,101

1,225,512

1,095,447

   Noncontrolling interest

145,459

141,590

134,114

128,363

147,586

   Total equity

1,403,277

1,399,221

1,384,215

1,353,875

1,243,033


$   2,533,221

$   2,515,124

$   2,465,464

$  2,430,583

$  2,432,055

 

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Income

(In thousands, except per share amounts, unaudited)



Three Months Ended

February 28,

Six Months Ended

February 28,


2019


2018


2019


2018

Revenue









        Manufacturing

$        476,019


$       511,827


$        947,808


$        963,312


        Wheels, Repair & Parts

125,278


88,710


233,821


166,721


        Leasing & Services

57,374


28,799


81,565


58,838



658,671


629,336


1,263,194


1,188,871


Cost of revenue









        Manufacturing

442,996


429,165


860,801


810,015


        Wheels, Repair & Parts

118,455


80,708


219,433


153,214


        Leasing & Services

43,376


14,116


56,583


30,981



604,827


523,989


1,136,817


994,210











Margin

53,844


105,347


126,377


194,661











Selling and administrative expense

47,892


50,294


98,324


97,337


Net gain on disposition of equipment

(12,102)


(5,817)


(26,455)


(24,988)


Earnings from operations

18,054


60,870


54,508


122,312











Other costs









Interest and foreign exchange

9,237


7,029


13,641


14,049


Earnings before income taxes and earnings (loss) from

    unconsolidated affiliates

8,817


53,841


40,867


108,263


Income tax benefit (expense)

(2,248)


11,301


(11,383)


(6,834)


Earnings before earnings (loss) from 

   unconsolidated affiliates

6,569


65,142


29,484


101,429


Earnings (loss) from unconsolidated affiliates

(786)


147


(319)


(2,763)


Net earnings

5,783


65,289


29,165


98,666


Net earnings attributable to noncontrolling interest

(3,018)


(3,647)


(8,444)


(10,771)











Net earnings attributable to Greenbrier

$              2,765


$         61,642


$           20,721


$            87,895











Basic earnings per common share:

$              0.08


$            2.10


$                0.63


$                 3.00











Diluted earnings per common share:

$                 0.08


$            1.91


$                0.63


$                 2.74











Weighted average common shares:









Basic

32,628


29,355


32,634


29,343


Diluted

33,206


32,711


33,149


32,703











Dividends declared per common share

$                 0.25


$                0.23


$                0.50


$                 0.46


 

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Cash Flows

(In thousands, unaudited) 




Six Months Ended

February 28,



2019

2018








Cash flows from operating activities







    Net earnings


$

29,165

$

98,666


    Adjustments to reconcile net earnings to net cash

      used in operating activities:







      Deferred income taxes



(3,405)


(35,080)


      Depreciation and amortization



40,815


36,454


      Net gain on disposition of equipment



(26,455)


(24,988)


      Accretion of debt discount



2,165


2,060


      Stock based compensation expense



7,311


12,574


      Noncontrolling interest adjustments



5,306


(2,555)


      Other



1,809


958


      Decrease (increase) in assets:







          Accounts receivable, net



23,298


(25,681)


          Inventories



(154,388)


(10,211)


          Leased railcars for syndication



(76,386)


(74,129)


          Other



(11,274)


10,434


    Increase (decrease) in liabilities:







          Accounts payable and accrued liabilities



28,458


46,434


          Deferred revenue



(13,041)


(42,589)


    Net cash used in operating activities



(146,622)


(7,653)


Cash flows from investing activities







    Proceeds from sales of assets



63,879


105,142


    Capital expenditures



(98,176)


(53,503)


    Investment in and advances to unconsolidated affiliates



(11,393)


(17,739)


    Other



1,986


1,207


    Net cash provided by (used in) investing activities



(43,704)


35,107


Cash flows from financing activities







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



(6,007)


3,666


    Proceeds from issuance of notes payable



225,000


13,929


    Repayments of notes payable



(176,641)


(16,056)


    Investment by joint venture partner



-


6,500


    Debt issuance costs



(2,770)


-


    Dividends



(16,651)


(13,546)


    Cash distribution to joint venture partner



(5,058)


(41,758)


    Tax payments for net share settlement of restricted stock



(4,762)


(5,199)


    Net cash provided by (used in) financing activities



13,111


(52,464)


    Effect of exchange rate changes



825


(465)


    Decrease in cash, cash equivalents and restricted cash



(176,390)


(25,475)


Cash, cash equivalents and restricted cash







    Beginning of period



539,474


620,358


    End of period


$

363,084

$

594,883


Balance Sheet Reconciliation







    Cash and cash equivalents


$

341,500

$

586,008


    Restricted cash



21,584


8,875


    Total cash, cash equivalents and restricted cash as presented above


$

363,084

$

594,883


 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

 (In thousands, except per share amounts, unaudited)


Operating Results by Quarter for 2019 are as follows:



First


Second


Total









Revenue







   Manufacturing

$        471,789


$       476,019


$          947,808


   Wheels, Repair & Parts

108,543


125,278


233,821


   Leasing & Services

24,191


57,374


81,565



604,523


658,671


1,263,194


Cost of revenue







   Manufacturing

417,805


442,996


860,801


   Wheels, Repair & Parts

100,978


118,455


219,433


   Leasing & Services

13,207


43,376


56,583



531,990


604,827


1,136,817









Margin

72,533


53,844


126,377









Selling and administrative expense

50,432


47,892


98,324


Net gain on disposition of equipment

(14,353)


(12,102)


(26,455)


Earnings from operations

36,454


18,054


54,508









Other costs







Interest and foreign exchange

4,404


9,237


13,641


Earnings before income taxes and earnings

   (loss) from unconsolidated affiliates          

32,050


8,817


40,867


Income tax expense

(9,135)


(2,248)


(11,383)


Earnings before earnings (loss) from 

   unconsolidated affiliates

22,915


6,569


29,484


Earnings (loss) from unconsolidated affiliates

467


(786)


(319)


Net earnings

23,382


5,783


29,165


Net earnings attributable to

   noncontrolling interest

(5,426)


(3,018)


(8,444)


Net earnings attributable to Greenbrier

$           17,956


$          2,765


$              20,721









Basic earnings per common share (1)

$               0.55


$            0.08


$                  0.63


Diluted earnings per common share (1) 

$               0.54


$            0.08


$                  0.63




(1)

Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share excludes the dilutive effect of the 2024 Convertible Notes, since the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive, but includes restricted stock units that are not considered participating securities and restricted stock units that are subject to performance criteria, for which actual levels of performance above target have been achieved, when dilutive.

 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

 (In thousands, except per share amounts, unaudited)


Operating Results by Quarter for 2018 are as follows:



First


Second


Third


Fourth


Total













Revenue











   Manufacturing

$          451,485


$          511,827


$          510,099


$          571,175


$     2,044,586


Wheels, Repair & Parts

78,011


88,710


94,515


85,787


347,023


Leasing & Services

30,039


28,799


36,773


32,244


127,855



559,535


629,336


641,387


689,206


2,519,464


Cost of revenue











   Manufacturing

380,850


429,165


427,875


489,517


1,727,407


Wheels, Repair & Parts

72,506


80,708


85,850


79,266


318,330


Leasing & Services

16,865


14,116


19,155


14,536


64,672



470,221


523,989


532,880


583,319


2,110,409













Margin

89,314


105,347


108,507


105,887


409,055













Selling and administrative expense

47,043


50,294


51,793


51,309


200,439


Net gain on disposition of equipment

(19,171)


(5,817)


(14,825)


(4,556)


(44,369)


Earnings from operations

61,442


60,870


71,539


59,134


252,985













Other costs











   Interest and foreign exchange

7,020


7,029


6,533


8,786


29,368


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

54,422


53,841


65,006


50,348


223,617


Income tax benefit (expense)

(18,135)


11,301


(15,944)


(10,115)


(32,893)


Earnings before earnings (loss) from

   unconsolidated affiliates          

36,287


65,142


49,062


40,233


190,724


Earnings (loss) from unconsolidated affiliates

(2,910)


147


(12,823)


(3,075)


(18,661)


Net earnings

33,377


65,289


36,239


37,158


172,063


Net earnings attributable to

  noncontrolling interest

(7,124)


(3,647)


(3,288)


(6,223)


(20,282)


Net earnings attributable to Greenbrier

$        26,253


$         61,642


$         32,951


$         30,935


$     151,781













Basic earnings per common share (1)

$              0.90


$            2.10


$            1.03


$              0.95


$           4.92


Diluted earnings per common share (1) 

$              0.83


$            1.91


$            1.01


$              0.94


$           4.68




(1)

Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share excludes the dilutive effect of the 2024 Convertible Notes, since the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive, but includes restricted stock units that are not considered participating securities and restricted stock units that are subject to performance criteria, for which actual levels of performance above target have been achieved, 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 2018 Convertible Notes matured on April 1, 2018.

 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

 (In thousands, unaudited)


Segment Information


Three months ended February 28, 2019:











Revenue


Earnings (loss) from operations



External


Intersegment


  Total


External


Intersegment


Total


Manufacturing

$           476,019


$             46,855


$         522,874


$           13,990


$               2,358


$       16,348


Wheels, Repair & Parts

125,278


8,858


134,136


2,823


(858)


1,965


Leasing & Services

57,374


2,911


60,285


21,030


2,101


23,131


Eliminations

-


(58,624)


(58,624)


-


(3,601)


(3,601)


Corporate

-


-


-


(19,789)


-


(19,789)



$           658,671


$                      -


$         658,671


$           18,054


$                      -


$      18,054












Three months ended November 30, 2018:











Revenue


Earnings (loss) from operations



External


Intersegment


  Total


External


Intersegment


Total


Manufacturing

$           471,789


$               6,201


$         477,990


$           36,855


$                  433


$       37,288


Wheels, Repair & Parts

108,543


15,981


124,524


3,247


312


3,559


Leasing & Services

24,191


5,999


30,190


17,513


5,452


22,965


Eliminations

-


(28,181)


(28,181)


-


(6,197)


(6,197)


Corporate

-


-


-


(21,161)


-


(21,161)



$           604,523


$                      -


$         604,523


$           36,454


$                      -


$      36,454







Total assets



   February 28,

2019


November 30,

2018


Manufacturing

$            1,093,593


$             998,820


Wheels, Repair & Parts

341,317


322,525


Leasing & Services

704,016


691,389


Unallocated

394,295


502,390



$            2,533,221


$          2,515,124


 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

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


Reconciliation of Net earnings to Adjusted EBITDA





Three Months Ended






  February 28,

2019


November 30,

2018



Net earnings

$                 5,783


$             23,382



Interest and foreign exchange

9,237


4,404



Income tax expense

2,248


9,135



Depreciation and amortization

20,115


20,700











Adjusted EBITDA

$             37,383


$             57,621










 




Three Months
Ended



February 28,
2019

Backlog Activity (units) (1)






Beginning backlog

27,500



Orders received

3,800



Production held as Leased railcars for syndication

(1,400)



Production sold directly to third parties

(3,900)



Ending backlog

26,000







Delivery Information (units) (1)




Production sold directly to third parties

3,900



Sales of Leased railcars for syndication

1,200



Total deliveries

5,100




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

 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

 (In thousands, except per share amounts, unaudited)


Reconciliation of common shares outstanding


The shares used in the computation of the Company's basic and diluted earnings per common share are reconciled as follows:



Three Months Ended


February 28,

2019

  November 30,

2018

Weighted average basic common shares outstanding (1)

32,628

32,640

Dilutive effect of convertible notes (2)

-

-

Dilutive effect of performance awards (3)

578

453

Weighted average diluted common shares outstanding

33,206

33,093




(1)

Restricted stock grants and restricted stock units that are considered participating securities, 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 2024 Convertible notes was excluded for the three months ended February 28, 2019 and November 30, 2018 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive.

(3)

Restricted stock units that are not considered participating securities and restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in Weighted average diluted shares outstanding when the Company is in a net earnings position.

 

Reconciliation of diluted earnings per share range



Year Ended

August 31, 2019


Diluted earnings per share range

$3.46  -  $3.66


Railcar contract loss accruals and closure costs

0.14


Diluted earnings per share range excluding railcar contract loss accruals and closure costs

$3.60  -  $3.80


 

SOURCE The Greenbrier Companies, Inc. (GBX)