LAKE OSWEGO, Ore., July 2, 2014 /PRNewswire/ -- The Greenbrier
Companies, Inc. (NYSE: GBX) today reported financial results for
its third fiscal quarter ended May 31,
2014.
Third Quarter Highlights
- Net earnings attributable to Greenbrier for the quarter of
$33.6 million, or $1.03 per diluted share, were over double the
second quarter EPS of $0.50.
- Adjusted EBITDA for the quarter was $78.0 million, or 13.1% of revenue.
- Railcar backlog as of May 31,
2014 was 26,400 units with an estimated value of
$2.75 billion (average unit sale
price of $104,000), compared to
15,200 units with an estimated value of $1.54 billion (average unit sale price of
$101,000) as of February 28, 2014.
- New railcar deliveries totaled 4,300 units for the quarter,
compared to 3,400 units for the quarter ended February 28, 2014.
- Orders for 15,600 new railcars valued at $1.65 billion received during the quarter. After
quarter end, Greenbrier received orders for an additional 2,700
units valued at approximately $320
million.
- Marine backlog as of May 31, 2014
totaled approximately $110
million.
- Board declares a quarterly dividend of $0.15 per share payable on August 5, 2014 to shareholders of record as of
July 15, 2014.
- Repurchased 352,000 shares of common stock at a cost of
$16.0 million during the quarter. To
date, repurchased 641,327 shares of common stock at a cost of
$26.3 million under a $50 million share repurchase program.
Progress on Strategic Initiatives
- Third quarter aggregate gross margin reached 16.3%, compared to
11.5% in the second quarter, and ahead of our stated goal of a
minimum 13.5% by the fourth quarter of fiscal 2014.
- Manufacturing gross margin reached a record 17.3% in the
quarter, driven by product mix, pricing and production
efficiencies.
- Successfully met $100 million
capital efficiency goal. Net debt has decreased nearly $160 million since February 2013 when goal was set. Management
remains intensely focused on capital efficiency and ROIC.
- Greenbrier continues leadership role in tank car safety.
Receives awards for 3,500 units of Tank Car of the Future;
announces repair joint venture with Watco, GBW Railcar
Services.
William A. Furman, Chairman and
CEO, said, "This quarter represents a solid and sustainable
performance level, and provides a good base for further growth and
diversification. All three of our business segments improved
their financial performance, with manufacturing and leasing
continuing to lead the way. I am very proud of our employees
for their achievements and execution against our strategic
plan."
"We have diversified our product mix, added efficient capacity
in lower cost facilities, and driven considerably more product
through our leasing model, all in line with our announced
strategy. This strategy is paying off and we expect growth
from all areas in our integrated business model in the quarters
ahead. Most recently, our planned repair joint venture with
Watco, named GBW Railcar Services, will increase our scale in tank
car repair, allowing us to participate in a meaningful way in the
growing tank car repair business, with demand driven by retrofit,
lining and maintenance needs from both the DOT-111 legacy and
CPC-1232 fleets, as well as rapid growth in North American tank car
traffic," Furman continued.
"In addition to tank car retrofits, we are also pioneering
efforts to improve safety in the rail industry with our Tank Car of
the Future design. Safety design features include thicker steel,
more robust top and bottom outlet protections, and jacketed shells
with ceramic insulation, along with full height head shields.
Recently, Greenbrier received awards for 3,500 units of its Tank
Car of the Future. These cars are eight times safer than
legacy DOT-111 cars most widely used in oil and ethanol service
today, and two times safer than the current state-of-the-art CPC
1232 tank cars, as measured by Conditional Probability of Release
(CPR). We continue to call on regulators to issue new rules
establishing safer tank car standards independent of rulemaking on
railroad speed restrictions. Our government needs to act on
this issue now. This will allow railroads to transport hazardous
materials safer at any speed," Furman added.
Liquidity & Business Outlook
Furman concluded, "We ended May with over $530 million of liquidity from cash balances and
available borrowings on revolving credit facilities. With a
strong backlog, good industry fundamentals and positive outlook, we
are investing in capital projects with high returns where we will
quickly recoup our investment. We are also pursuing growth
opportunities in areas core to our business that will diversify our
revenue base throughout the cycle. The future looks bright
for Greenbrier, and we remain committed to improving operations in
each segment and enhancing the long-term trajectory of key metrics,
such as gross margins, EBITDA and ROIC."
Based on current business trends and industry forecasts,
Greenbrier now expects:
- Deliveries in the fourth quarter to be between 4,300 units and
4,600 units, resulting in fiscal 2014 deliveries of 15,700 units to
16,000 units
- Fourth quarter revenue to increase 4-6% above third quarter
revenue of $593 million, resulting in
annual revenue in excess of $2.2
billion
- EPS, excluding restructuring charges, for the fourth quarter in
the range of $0.95 to $1.05 resulting
in fiscal 2014 EPS, excluding restructuring charges, in the range
of $2.98 to $3.08 (1)
(1) Quarterly amounts do not
total to the annual amount as each period is calculated
discretely.
The above estimates reflect an anticipated 29% tax rate and
nominal gains on disposition of equipment in the fourth
quarter.
The above estimates do not reflect any purchase price accounting
adjustments, one-time transaction-related costs, or other effects
that may occur in conjunction with the closing of the GBW joint
venture. While the trend in gross margin is expected to
continue, management does not believe its track will be linear.
Greenbrier will provide its financial outlook for 2015 when
fourth quarter results are released at the end of October 2014.
Financial Summary
|
Q3
FY14
|
Q2
FY14
|
Sequential
Comparison – Main Drivers
|
Revenue
|
$593.3M
|
$502.2M
|
Up 18.1% primarily
due to increased deliveries
|
Gross
margin
|
16.3%
|
11.5%
|
Up 480 bps driven by
improved efficiencies, pricing and product mix
|
SG&A
|
$34.8M
|
$28.1M
|
Up 23.8% driven by
increased levels of activity and profitability
|
Gain on
disposition
of
equipment
|
$5.6M
|
$5.4M
|
Timing of sales
fluctuates and is opportunistic, typically range from $1.0M to
$5.0M per quarter
|
Restructuring
charges
|
$0.1M
|
$0.5M
|
Related to Wheels,
Repair & Parts segment
|
Adjusted EBITDA
(1)
|
$78.0M
|
$44.9M
|
Up 73.7% driven by
increased deliveries and improved operating efficiencies
|
Effective tax rate
(2)
|
26.3%
|
32.4%
|
Impacted by higher
GIMSA JV earnings
|
Net earnings
(1)
|
$33.6M
|
$16.0M
|
|
Diluted
EPS
|
$1.03
|
$0.51
(1)
|
|
|
|
(1)
|
Excluding
restructuring charges.
|
(2)
|
Earnings attributable
to our 50% GIMSA JV can cause a significant reduction in the tax
rate when those earnings are significant, as was the case in the
third quarter. This occurs since 100% of GIMSA's earnings are
included in our pre-tax results, but income taxes only include
Greenbrier's tax obligation on 50% of GIMSA's earnings.
Earnings and taxes are presented this way because the GIMSA JV is a
non-taxpaying domestic partnership for which taxes are payable by
the partners rather than the partnership. Net earnings
attributable to noncontrolling interest includes our partner's 50%
share of GIMSA's pre-tax earnings. The tax rate for the
current and prior quarter would have been approximately 33% - 35%
had GIMSA not been a partnership, and had 100% of pre-tax earnings
been taxed, with noncontrolling interest shown net of
tax.
|
Segment Summary
|
Q3
FY14
|
Q2
FY14
|
Sequential
Comparison – Main Drivers
|
Manufacturing
|
Revenue
|
$425.6M
|
$347.8M
|
Up 22.4% due to
increased deliveries and higher marine activity
|
Gross
margin
|
17.3%
|
11.8%
|
Up 550 bps due to
improved product mix, pricing and production
efficiencies
|
Operating
margin (2)
|
14.4%
|
8.7%
|
|
Deliveries
|
4,300
|
3,400
|
|
Wheels, Repair
& Parts
|
Revenue
|
$140.7M
|
$136.5M
|
Up 3.1% due to
increased wheel volume
|
Gross
margin
|
7.7%
|
6.3%
|
Up 140 bps due to
improved efficiencies
|
Operating
margin (2) (3)
|
3.9%
|
2.6%
|
|
Leasing &
Services
|
Revenue
|
$27.0M
|
$17.9M
|
Up 50.8% due to
syndication of third party produced railcars and more interim
rent
|
Gross
margin
|
45.1%
|
45.0%
|
Up 10 bps
|
Operating
margin (2) (4)
|
53.9%
|
53.8%
|
|
Lease fleet
utilization
|
97.9%
|
97.6%
|
|
|
|
(2) |
See supplemental
segment information on page 12 for additional
information.
|
(3) |
Includes
restructuring charges of $0.1 million in Q3 2014 and $0.5 million
in Q2 2014.
|
(4) |
Operating margin
includes Gains on disposition of equipment, which is excluded from
gross margin.
|
Conference Call
Greenbrier will host a teleconference to discuss its third
quarter 2014 results. In conjunction with this news release,
Greenbrier has posted a supplemental earnings presentation to our
website. Teleconference details are as follows:
- July 2, 2014
- 8:00 a.m. Pacific Daylight
Time
- Phone: 1-630-395-0143, Password: "Greenbrier"
- Real-time Audio Access: ("Newsroom" at
http://www.gbrx.com)
Please access the site 10 minutes prior to the start time.
Following the call, a webcast replay will be available for 30
days. Telephone replay will be available through July 19, 2014, at 402-280-9930.
About Greenbrier Companies
Greenbrier, (www.gbrx.com), headquartered in Lake Oswego, Oregon, is a leading supplier of
transportation equipment and services to the railroad industry. We
build new railroad freight cars in our four manufacturing
facilities in the U.S. and Mexico
and marine barges at our U.S. manufacturing facility.
Greenbrier also sells reconditioned wheel sets and provides
wheel services at 9 locations throughout the U.S. We
recondition, manufacture and sell railcar parts at 4 U.S.
sites. Greenbrier builds new railroad freight cars and
refurbishes freight cars for the European market through our
operations in Poland. Greenbrier
owns approximately 8,300 railcars, and performs management services
for approximately 235,000 railcars. We recently announced a
joint venture with the railcar repair and refurbishment operations
of Watco Companies LLC to form GBW Railcar Services, LLC which will
feature 38 repair and refurbishment sites across North America.
"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 increase
manufacturing capacity, restructuring plans, new railcar delivery
volumes and schedules, growth in demand for the Company's railcar
services and parts business, and the Company's future financial
performance. Greenbrier uses words such as "anticipates,"
"believes," "forecast," "potential," "goal," "contemplates,"
"expects," "intends," "plans," "projects," "hopes," "seeks,"
"estimates," "strategy," "could," "would," "should," "likely,"
"will," "may," "can," "designed to," "future," "foreseeable future"
and similar expressions to identify forward-looking
statements. These forward-looking statements are not
guarantees of future performance and are subject to certain risks
and uncertainties that could cause actual results to differ
materially from in the results contemplated by the forward-looking
statements. Factors that might cause such a difference
include, but are not limited to, reported backlog and awards are
not indicative of our financial results; turmoil in the credit
markets and financial services industry; high levels of
indebtedness and compliance with the terms of our indebtedness;
write-downs of goodwill, intangibles and other assets in future
periods; sufficient availability of borrowing capacity;
fluctuations in demand for newly manufactured railcars or failure
to obtain orders as anticipated in developing forecasts; loss of
one or more significant customers; customer payment defaults or
related issues; actual future costs and the availability of
materials and a trained workforce; failure to design or manufacture
new products or technologies or to achieve certification or market
acceptance of new products or technologies; steel or specialty
component price fluctuations and availability and scrap surcharges;
changes in product mix and the mix between segments; labor
disputes, energy shortages or operating difficulties that might
disrupt manufacturing operations or the flow of cargo; production
difficulties and product delivery delays as a result of, among
other matters, inefficiencies associated with expansion or start-up
of production lines or increased 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 interruption of our
manufacturing operations as a result of lease termination or
expiration; 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, 2013, 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.
Net earnings excluding restructuring charges, Adjusted EBITDA,
and Diluted earnings per share excluding restructuring charges are
not financial measures under generally accepted accounting
principles (GAAP). We define Net earnings excluding restructuring
charges as Net earnings before restructuring charges
(after-tax). We define Adjusted EBITDA as Net earnings
attributable to Greenbrier before interest and foreign exchange,
income tax expense, restructuring charges and depreciation and
amortization. We define Diluted earnings per share excluding
restructuring charges as Net earnings excluding restructuring
charges before interest and debt issuance costs (net of tax) on
convertible notes divided by Weighted average diluted common shares
outstanding. Net earnings excluding restructuring charges,
Adjusted EBITDA, and Diluted earnings per share excluding
restructuring charges are performance measurement tools used by
Greenbrier. You should not consider Net earnings excluding
restructuring charges, Adjusted EBITDA, and Diluted earnings per
share excluding restructuring charges in isolation or as a
substitute for other financial statement data determined in
accordance with GAAP. In addition, because Adjusted EBITDA and
Diluted earnings per share excluding restructuring charges are not
measures of financial performance under GAAP and are susceptible to
varying calculations, the Adjusted EBITDA and Diluted earnings per
share excluding restructuring charges measures presented may differ
from and may not be comparable to similarly titled measures used by
other companies.
THE GREENBRIER
COMPANIES, INC.
Consolidated Balance
Sheets (In thousands,
unaudited)
|
|
|
May 31,
2014
|
February 28,
2014
|
November 30,
2013
|
August
31, 2013
|
May 31,
2013
|
Assets
|
|
|
|
|
|
Cash and
cash equivalents
|
$ 198,492
|
$ 143,929
|
$
81,226
|
$ 97,435
|
$ 31,606
|
Restricted cash
|
9,468
|
8,964
|
8,975
|
8,807
|
8,906
|
Accounts
receivable, net
|
181,850
|
148,810
|
174,745
|
154,848
|
162,352
|
Inventories
|
337,197
|
306,394
|
328,235
|
316,783
|
344,168
|
Leased
railcars for syndication
|
96,332
|
84,657
|
61,282
|
68,480
|
71,091
|
Equipment on operating leases, net
|
274,863
|
282,328
|
293,291
|
305,468
|
332,924
|
Property, plant and equipment, net
|
215,942
|
204,804
|
201,353
|
201,533
|
197,779
|
Goodwill
|
57,416
|
57,416
|
57,416
|
57,416
|
57,416
|
Intangibles and other assets, net
|
79,012
|
77,173
|
76,055
|
78,971
|
79,364
|
|
$ 1,450,572
|
$ 1,314,475
|
$ 1,282,578
|
$ 1,289,741
|
$ 1,285,606
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Revolving notes
|
$ 18,082
|
$ 26,738
|
$
38,805
|
$ 48,209
|
$ 92,968
|
Accounts
payable and accrued liabilities
|
356,541
|
319,611
|
293,041
|
315,938
|
286,964
|
Deferred
income taxes
|
79,526
|
84,848
|
86,501
|
86,040
|
86,229
|
Deferred
revenue
|
21,153
|
14,272
|
8,706
|
8,838
|
16,203
|
Notes
payable
|
447,068
|
371,427
|
372,666
|
373,889
|
372,942
|
|
|
|
|
|
|
Total
equity - Greenbrier
|
476,145
|
456,569
|
447,599
|
428,202
|
404,707
|
Noncontrolling interest
|
52,057
|
41,010
|
35,260
|
28,625
|
25,593
|
Total
equity
|
528,202
|
497,579
|
482,859
|
456,827
|
430,300
|
|
$ 1,450,572
|
$ 1,314,475
|
$ 1,282,578
|
$ 1,289,741
|
$ 1,285,606
|
THE GREENBRIER
COMPANIES, INC.
|
Consolidated
Statements of Operations
(In thousands,
except per share amounts, unaudited)
|
|
|
Three Months
Ended May
31,
|
Nine Months
Ended May
31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Revenue
|
|
|
|
|
|
|
|
Manufacturing
|
$ 425,583
|
|
$ 284,591
|
|
$ 1,132,811
|
|
$ 864,006
|
Wheels,
Repair & Parts
|
140,663
|
|
131,167
|
|
390,604
|
|
355,219
|
Leasing
& Services
|
27,039
|
|
17,905
|
|
62,441
|
|
52,978
|
|
593,285
|
|
433,663
|
|
1,585,856
|
|
1,272,203
|
Cost of
revenue
|
|
|
|
|
|
|
|
Manufacturing
|
351,829
|
|
253,360
|
|
969,841
|
|
774,502
|
Wheels,
Repair & Parts
|
129,825
|
|
120,476
|
|
365,740
|
|
325,086
|
Leasing
& Services
|
14,856
|
|
9,808
|
|
34,090
|
|
26,542
|
|
496,510
|
|
383,644
|
|
1,369,671
|
|
1,126,130
|
|
|
|
|
|
|
|
|
Margin
|
96,775
|
|
50,019
|
|
216,185
|
|
146,073
|
|
|
|
|
|
|
|
|
Selling and
administrative expense
|
34,800
|
|
25,322
|
|
89,034
|
|
76,364
|
Net gain on
disposition of equipment
|
(5,619)
|
|
(5,131)
|
|
(14,686)
|
|
(9,615)
|
Goodwill
impairment
|
-
|
|
76,900
|
|
-
|
|
76,900
|
Restructuring
charges
|
56
|
|
-
|
|
1,475
|
|
-
|
Earnings (loss)
from operations
|
67,538
|
|
(47,072)
|
|
140,362
|
|
2,424
|
|
|
|
|
|
|
|
|
Other
costs
|
|
|
|
|
|
|
|
Interest
and foreign exchange
|
5,437
|
|
5,905
|
|
14,280
|
|
18,127
|
Earnings (loss)
before income tax and earnings (loss)
from
unconsolidated affiliates
|
62,101
|
|
(52,977)
|
|
126,082
|
|
(15,703)
|
Income tax
expense
|
(16,303)
|
|
(2,729)
|
|
(36,708)
|
|
(12,905)
|
Earnings (loss)
before earnings (loss) from
unconsolidated affiliates
|
45,798
|
|
(55,706)
|
|
89,374
|
|
(28,608)
|
Earnings (loss) from
unconsolidated affiliates
|
298
|
|
82
|
|
272
|
|
(63)
|
Net earnings
(loss)
|
46,096
|
|
(55,624)
|
|
89,646
|
|
(28,671)
|
Net earnings
attributable to noncontrolling interest
|
(12,508)
|
|
(406)
|
|
(25,083)
|
|
(3,093)
|
|
|
|
|
|
|
|
|
Net earnings
(loss) attributable to Greenbrier
|
$ 33,588
|
|
$ (56,030)
|
|
$ 64,563
|
|
$ (31,764)
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per common share:
|
$ 1.20
|
|
$ (2.10)
|
|
$ 2.29
|
|
$
(1.20)
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per common share:
|
$ 1.03
|
|
$
(2.10)
|
|
$ 2.01
|
|
$
(1.20)
|
|
|
|
|
|
|
|
|
Weighted average
common shares:
|
|
|
|
|
|
|
|
Basic
|
27,956
|
|
26,619
|
|
28,223
|
|
26,510
|
Diluted
|
34,001
|
|
26,619
|
|
34,268
|
|
26,510
|
|
|
|
|
|
|
|
|
THE GREENBRIER
COMPANIES, INC.
|
Consolidated
Statements of Cash Flows
(In thousands,
unaudited)
|
|
|
Nine Months
Ended May
31,
|
|
2014
|
|
2013
|
Cash flows from
operating activities:
|
|
|
|
Net earnings (loss)
|
$
89,646
|
|
$ (28,671)
|
Adjustments to reconcile net earnings (loss) to net cash
provided by operating activities:
|
|
|
|
Deferred income taxes
|
(6,745)
|
|
(9,391)
|
Depreciation and amortization
|
30,824
|
|
31,523
|
Net gain on disposition of equipment
|
(14,686)
|
|
(9,615)
|
Accretion of debt
discount
|
-
|
|
2,455
|
Stock based compensation
expense
|
6,454
|
|
4,843
|
Goodwill impairment
|
-
|
|
76,900
|
Other
|
3,341
|
|
(1,895)
|
Decrease (increase) in assets:
|
|
|
|
Accounts receivable
|
(26,226)
|
|
(15,499)
|
Inventories
|
(21,722)
|
|
(9,114)
|
Leased railcars for syndication
|
(25,420)
|
|
22,067
|
Other
|
(2,491)
|
|
338
|
Increase (decrease) in liabilities:
|
|
|
|
Accounts payable and accrued liabilities
|
36,507
|
|
(43,605)
|
Deferred revenue
|
12,258
|
|
(1,099)
|
Net cash provided by operating activities
|
81,740
|
|
19,237
|
Cash flows from
investing activities:
|
|
|
|
Proceeds from sales of assets
|
39,515
|
|
39,611
|
Capital expenditures
|
(34,522)
|
|
(49,677)
|
Increase in restricted cash
|
(661)
|
|
(2,629)
|
Investment in and net advances to unconsolidated
affiliates
|
(1,253)
|
|
(1,016)
|
Other
|
-
|
|
(3,582)
|
Net cash provided by (used in) investing activities
|
3,079
|
|
(17,293)
|
Cash flows from
financing activities:
|
|
|
|
Net change in revolving notes with maturities of 90 days or
less
|
-
|
|
26,973
|
Proceeds
from revolving notes with maturities longer than 90 days
|
34,674
|
|
31,847
|
Repayments of revolving notes with maturities longer than 90
days
|
(64,801)
|
|
(26,877)
|
Proceeds
from issuance of notes payable
|
200,000
|
|
-
|
Repayments of notes payable
|
(126,821)
|
|
(57,592)
|
Debt issuance costs
|
(382)
|
|
-
|
Repurchase of stock
|
(26,293)
|
|
-
|
Cash distribution to joint venture partner
|
(3,109)
|
|
-
|
Investment by joint venture
|
419
|
|
2,577
|
Excess
tax benefit from restricted stock awards
|
109
|
|
777
|
Other
|
-
|
|
(8)
|
Net cash provided by (used in) financing activities
|
13,796
|
|
(22,303)
|
Effect of exchange
rate changes
|
2,442
|
|
(1,606)
|
Increase
(decrease) in cash and cash equivalents
|
101,057
|
|
(21,965)
|
Cash and cash
equivalents
|
|
|
|
Beginning of period
|
97,435
|
|
53,571
|
End of period
|
$ 198,492
|
|
$
31,606
|
THE GREENBRIER
COMPANIES, INC.
|
Supplemental
Information
(In thousands,
except per share amounts, unaudited)
Operating Results
by Quarter for 2014 are as follows:
|
|
|
|
First
|
|
Second
|
|
Third
|
|
Total
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
Manufacturing
|
$ 359,473
|
|
$ 347,755
|
|
$ 425,583
|
|
$ 1,132,811
|
Wheels,
Repair & Parts
|
113,401
|
|
136,540
|
|
140,663
|
|
390,604
|
Leasing
& Services
|
17,481
|
|
17,921
|
|
27,039
|
|
62,441
|
|
490,355
|
|
502,216
|
|
593,285
|
|
1,585,856
|
Cost of
revenue
|
|
|
|
|
|
|
|
Manufacturing
|
311,440
|
|
306,572
|
|
351,829
|
|
969,841
|
Wheels,
Repair & Parts
|
107,975
|
|
127,940
|
|
129,825
|
|
365,740
|
Leasing
& Services
|
9,381
|
|
9,853
|
|
14,856
|
|
34,090
|
|
428,796
|
|
444,365
|
|
496,510
|
|
1,369,671
|
|
|
|
|
|
|
|
|
Margin
|
61,559
|
|
57,851
|
|
96,775
|
|
216,185
|
|
|
|
|
|
|
|
|
Selling and
administrative expense
|
26,109
|
|
28,125
|
|
34,800
|
|
89,034
|
Net gain on
disposition of equipment
|
(3,651)
|
|
(5,416)
|
|
(5,619)
|
|
(14,686)
|
Restructuring
charges
|
879
|
|
540
|
|
56
|
|
1,475
|
Earnings from
operations
|
38,222
|
|
34,602
|
|
67,538
|
|
140,362
|
|
|
|
|
|
|
|
|
Other
costs
|
|
|
|
|
|
|
|
Interest
and foreign exchange
|
4,744
|
|
4,099
|
|
5,437
|
|
14,280
|
Earnings before
income tax and
earnings
(loss) from unconsolidated affiliates
|
33,478
|
|
30,503
|
|
62,101
|
|
126,082
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(10,522)
|
|
(9,883)
|
|
(16,303)
|
|
(36,708)
|
Earnings before
earnings (loss) from
unconsolidated affiliates
|
22,956
|
|
20,620
|
|
45,798
|
|
89,374
|
Earnings (loss) from
unconsolidated affiliates
|
41
|
|
(67)
|
|
298
|
|
272
|
Net
earnings
|
22,997
|
|
20,553
|
|
46,096
|
|
89,646
|
Net earnings
attributable to
noncontrolling interest
|
(7,609)
|
|
(4,966)
|
|
(12,508)
|
|
(25,083)
|
Net earnings
attributable to Greenbrier
|
$ 15,388
|
|
$ 15,587
|
|
$ 33,588
|
|
$
64,563
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$ 0.54
|
|
$ 0.55
|
|
$
1.20
|
|
$
2.29
|
Diluted earnings
per common share (1)
|
$ 0.49
|
|
$ 0.50
|
|
$
1.03
|
|
$
2.01
|
|
|
(1) |
Quarterly amounts do
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 using the treasury stock
method 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 2013 are as follows:
|
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
$ 285,368
|
|
$ 294,047
|
|
$ 284,591
|
|
$ 351,728
|
|
$ 1,215,734
|
Wheels,
Repair & Parts
|
112,100
|
|
111,952
|
|
131,167
|
|
114,003
|
|
469,222
|
Leasing
& Services
|
17,906
|
|
17,167
|
|
17,905
|
|
18,484
|
|
71,462
|
|
415,374
|
|
423,166
|
|
433,663
|
|
484,215
|
|
1,756,418
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
258,492
|
|
262,650
|
|
253,360
|
|
308,387
|
|
1,082,889
|
Wheels,
Repair & Parts
|
101,476
|
|
103,134
|
|
120,476
|
|
106,415
|
|
431,501
|
Leasing
& Services
|
7,627
|
|
9,107
|
|
9,808
|
|
9,113
|
|
35,655
|
|
367,595
|
|
374,891
|
|
383,644
|
|
423,915
|
|
1,550,045
|
|
|
|
|
|
|
|
|
|
|
Margin
|
47,779
|
|
48,275
|
|
50,019
|
|
60,300
|
|
206,373
|
|
|
|
|
|
|
|
|
|
|
Selling and
administrative
|
26,100
|
|
24,942
|
|
25,322
|
|
26,811
|
|
103,175
|
Net gain on
disposition of equipment
|
(1,408)
|
|
(3,076)
|
|
(5,131)
|
|
(8,457)
|
|
(18,072)
|
Goodwill
impairment
|
-
|
|
-
|
|
76,900
|
|
-
|
|
76,900
|
Restructuring
charges
|
-
|
|
-
|
|
-
|
|
2,719
|
|
2,719
|
Earnings (loss) from
operations
|
23,087
|
|
26,409
|
|
(47,072)
|
|
39,227
|
|
41,651
|
|
|
|
|
|
|
|
|
|
|
Other
costs
|
|
|
|
|
|
|
|
|
|
Interest
and foreign exchange
|
5,900
|
|
6,322
|
|
5,905
|
|
4,031
|
|
22,158
|
Earnings (loss)
before income tax and
earnings
(loss) from unconsolidated affiliates
|
17,187
|
|
20,087
|
|
(52,977)
|
|
35,196
|
|
19,493
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(4,586)
|
|
(5,590)
|
|
(2,729)
|
|
(12,155)
|
|
(25,060)
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
unconsolidated affiliates
|
(40)
|
|
(105)
|
|
82
|
|
249
|
|
186
|
Net earnings
(loss)
|
12,561
|
|
14,392
|
|
(55,624)
|
|
23,290
|
|
(5,381)
|
Net earnings
attributable to
noncontrolling interest
|
(2,134)
|
|
(553)
|
|
(406)
|
|
(2,574)
|
|
(5,667)
|
Net earnings
(loss) attributable to Greenbrier
|
$
10,427
|
|
$ 13,839
|
|
$ (56,030)
|
|
$
20,716
|
|
$
(11,048)
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per common share: (1)
|
$
0.38
|
|
$
0.51
|
|
$ (2.10)
|
|
$
0.74
|
|
$
(0.41)
|
Diluted earnings
(loss) per common share: (2)
|
$
0.35
|
|
$
0.45
|
|
$ (2.10)
|
|
$
0.64
|
|
$
(0.41)
|
|
|
(1) |
Quarterly amounts do
not total to the annual amount as each period is calculated
discretely.
|
|
|
(2) |
Quarterly amounts do
not total to the annual amount as each period is calculated
discretely. For the first, second and fourth quarters, diluted
earnings per common share includes the outstanding warrants using
the treasury stock method 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, 2014:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Earnings (loss) from
operations
|
|
External
|
|
Intersegment
|
|
Total
|
|
External
|
|
Intersegment
|
|
Total
|
Manufacturing
|
$
425,583
|
|
$
-
|
|
$ 425,583
|
|
$ 61,116
|
|
$ -
|
|
$ 61,116
|
Wheels, Repair &
Parts
|
140,663
|
|
3,783
|
|
144,446
|
|
5,524
|
|
473
|
|
5,997
|
Leasing &
Services
|
27,039
|
|
9,334
|
|
36,373
|
|
14,582
|
|
9,334
|
|
23,916
|
Eliminations
|
-
|
|
(13,117)
|
|
(13,117)
|
|
-
|
|
(9,807)
|
|
(9,807)
|
Corporate
|
-
|
|
-
|
|
-
|
|
(13,684)
|
|
-
|
|
(13,684)
|
|
$
593,285
|
|
$
-
|
|
$ 593,285
|
|
$ 67,538
|
|
$
-
|
|
$ 67,538
|
Three months ended
February 28, 2014:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Earnings (loss) from
operations
|
|
External
|
|
Intersegment
|
|
Total
|
|
External
|
|
Intersegment
|
|
Total
|
Manufacturing
|
$ 347,755
|
|
$ -
|
|
$ 347,755
|
|
$ 30,112
|
|
$
-
|
|
$ 30,112
|
Wheels, Repair &
Parts
|
136,540
|
|
2,307
|
|
138,847
|
|
3,574
|
|
42
|
|
3,616
|
Leasing &
Services
|
17,921
|
|
5,414
|
|
23,335
|
|
9,636
|
|
5,420
|
|
15,056
|
Eliminations
|
-
|
|
(7,721)
|
|
(7,721)
|
|
-
|
|
(5,462)
|
|
(5,462)
|
Corporate
|
-
|
|
-
|
|
-
|
|
(8,720)
|
|
-
|
|
(8,720)
|
|
$ 502,216
|
|
$ -
|
|
$ 502,216
|
|
$ 34,602
|
|
$ -
|
|
$ 34,602
|
|
Total assets
|
|
May 31,
|
|
February 28,
|
|
2014
|
|
2014
|
Manufacturing
|
$
500,434
|
|
$
406,620
|
Wheels, Repair &
Parts
|
316,416
|
|
317,921
|
Leasing &
Services
|
425,751
|
|
437,043
|
Unallocated
|
207,971
|
|
152,891
|
|
$
1,450,572
|
|
$ 1,314,475
|
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,
2014
|
|
February 28,
2014
|
Net
earnings
|
$
46,096
|
|
$
20,553
|
Interest and foreign
exchange
|
5,437
|
|
4,099
|
Income tax
expense
|
16,303
|
|
9,883
|
Depreciation and
amortization
|
10,071
|
|
9,856
|
Restructuring
charges
|
56
|
|
540
|
|
|
|
,
|
|
,
|
Adjusted
EBITDA
|
$
77,963
|
|
$
44,931
|
|
|
|
|
|
|
(1)
|
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,
restructuring charges, depreciation and amortization.
Adjusted EBITDA is a performance measurement tool commonly used by
rail supply companies and Greenbrier. You should not consider
Adjusted EBITDA in isolation or as a substitute for other financial
statement data determined in accordance with GAAP. In
addition, because Adjusted EBITDA is not a measure of financial
performance under GAAP and is susceptible to varying calculations,
the Adjusted EBITDA measure presented may differ from and may not
be comparable to similarly titled measures used by other
companies.
|
|
|
|
Three Months
Ended May 31,
2014
|
Backlog Activity
(units)
|
|
|
|
Beginning
backlog
|
15,200
|
Orders
received
|
15,600
|
Production held as
Leased railcars for syndication
|
(1,000)
|
Production sold
directly to third parties
|
(3,400)
|
Ending
backlog
|
26,400
|
|
|
Delivery
Information (units)
|
|
Production sold
directly to third parties
|
3,400
|
Sales of Leased
railcars for syndication
|
900
|
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 and Diluted earnings per share
excluding restructuring charges are reconciled as follows:
|
Three Months
Ended
|
|
|
May 31,
2014
|
|
February 28,
2014
|
|
Weighted average
basic common shares outstanding (1)
|
27,956
|
|
28,300
|
|
Dilutive effect of
convertible notes (2)
|
6,045
|
|
6,045
|
|
Weighted average
diluted common shares outstanding
|
34,001
|
|
34,345
|
|
|
|
|
|
|
|
|
|
|
(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 was included for the
three months ended May 31, 2014 and excluded for the three months
ended February 28, 2014 based on the average stock price being
greater or less than the initial conversion price of $48.05;
however, the dilutive impact was inconsequential to the quarter
ended May 31, 2014.
|
Diluted earnings per share was calculated using the more
dilutive of two approaches. The first approach includes the
dilutive effect of outstanding warrants and shares underlying the
2026 Convertible notes in the share count using the treasury stock
method. 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. The 2026 Convertible notes would only be
included in the calculation of both approaches if the current stock
price is greater than the initial conversion price of $48.05 using the treasury stock method.
Reconciliation of
Net earnings attributable to Greenbrier to Net earnings excluding
restructuring charges
|
|
|
Three Months
Ended
|
|
May 31,
2014
|
|
February 28,
2014
|
Net earnings
attributable to Greenbrier
|
$
33,588
|
|
$
15,587
|
Restructuring charges
(after-tax)
|
41
|
|
365
|
Net earnings
excluding restructuring charges (1)
|
33,629
|
|
15,952
|
Add back:
|
|
|
|
Interest and debt
issuance costs on the 2018 Convertible
notes, net of tax
|
1,416
|
|
1,416
|
Earnings before
interest and debt issuance costs on
convertible notes
|
$
35,060
|
|
7,368
|
Weighted average
diluted common shares outstanding
|
34,001
|
|
34,345
|
|
|
|
|
Diluted earnings per
share excluding restructuring charges
(2)
|
$
1.03
|
|
$
0.51
|
|
|
(1) |
Net earnings
excluding restructuring charges is not a financial measure under
GAAP. We define Net earnings excluding restructuring charges as Net
earnings attributable to Greenbrier before restructuring charges
(after-tax). Net earnings excluding restructuring charges is a
performance measurement tool used by Greenbrier. You should not
consider Net earnings excluding restructuring charges in isolation
or as a substitute for other financial statement data determined in
accordance with GAAP.
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(2) |
Diluted earnings per
share excluding restructuring charges is not a financial measure
under GAAP. We define Diluted earnings per share excluding
restructuring charges as Net earnings excluding restructuring
charges before interest and debt issuance costs (net of tax) on
convertible notes divided by Weighted average diluted common shares
outstanding. Diluted earnings per share excluding restructuring
charges is a performance measurement tool used by Greenbrier. You
should not consider Diluted earnings per share excluding
restructuring charges in isolation or as a substitute for other
financial statement data determined in accordance with GAAP. In
addition, because Diluted earnings per share excluding
restructuring charges is not a measure of financial performance
under GAAP and is susceptible to varying calculations, the Diluted
earnings per share excluding restructuring charges measure
presented may differ from and may not be comparable to similarly
titled measures used by other companies.
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SOURCE The Greenbrier Companies, Inc. (GBX)