Greenbrier Reports Second Quarter Results

Date : 04/06/2018 @ 6:00AM
Source : PR Newswire (US)
Stock : Greenbrier Companies (The) (GBX)
Quote : 59.6  0.0 (0.00%) @ 2:05AM

Greenbrier Reports Second Quarter Results

Greenbrier (NYSE:GBX)
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LAKE OSWEGO, Ore., April 6, 2018  /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE: GBX) today reported financial results for its second fiscal quarter ended February 28, 2018.

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

Second Quarter Highlights

  • Net earnings attributable to Greenbrier for the quarter were $61.6million, or $1.91 per diluted share, on revenue of $629.3 million. Quarterly results included $0.89 per diluted share related to the Tax Cuts and Jobs Act (Tax Act) enacted December 22, 2017.
  • Adjusted EBITDA for the quarter was $79.1 million, or 12.6% of revenue.
  • Orders for 3,400 diversified railcars were received during this quarter, valued at over $265 million.
  • New railcar backlog as of February 28, 2018 was 24,100 units with an estimated value of $2.3 billion.
  • New railcar deliveries totaled 4,900 units for the quarter.
  • Board increases quarterly dividend 9% to $0.25 per share, payable on May 16, 2018 to shareholders as of April 25, 2018.
  • Subsequent to quarter end, Greenbrier's $119 million of 3.5% convertible notes converted into equity. Under the "if-converted" method, the shares were already included in EPS calculations and guidance. If the conversion would have occurred in February, total equity would have been $1.4 billion with total assets of $2.4 billion.

William A. Furman, Chairman and CEO, said, "The North American railcar market is improving but remains competitive.  Greenbrier's performance reflects the creativity and flexibility of its people and the strength of our strategy in North America and around the world.  Greenbrier's international expansion now meaningfully contributes each quarter with new sources of revenue and diversification of backlog.  Nearly half of year-to-date order activity was generated in markets outside of North America.  We are replicating Greenbrier's core business model as part of the railcar renewal cycles in Brazil and parts of Europe."

Furman continued, "For the quarter we secured orders for 3,400 units globally, ending the quarter with 24,100 units in backlog, valued at $2.3 billion.  At the midpoint of the fiscal year we are confident of achieving full year guidance; a validation of the strength and value of Greenbrier's market approach.  Cash flow remains strong, enabling us to continue a balanced capital allocation strategy.  The Board of Directors approved a 9% increase in quarterly dividend to $0.25 per share, part of Greenbrier's ongoing commitment to returning capital to shareholders in a prudent and efficient manner."

Furman concluded, "Greenbrier's strong backlog, driven by a broad product line and innovative service offerings, allows discipline in the current competitive environment.  Growing customer confidence and increased utilization of the North American rail fleet is generating increased demand for Greenbrier products and services.  Greenbrier creates transactions tailored for customers' success.  Our strategy remains to grow the business, domestically and internationally, well beyond the current fiscal year." 

Business Outlook

Based on current business trends, industry forecasts and production schedules for fiscal 2018, Greenbrier believes:

  • Deliveries will be approximately 20,000 – 22,000 units including Greenbrier-Maxion (Brazil) which will account for up to 10% of deliveries
  • Revenue will be $2.4$2.6 billion
  • Diluted EPS will be $5.00 including a second quarter benefit of $0.89 from the Tax Act and a lower tax rate going forward

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 FY18  

Q1 FY18  

Sequential Comparison – Main Drivers  

Revenue

$629.3M

$559.5M

Up 12.5% primarily due to higher volume of deliveries and higher wheel and component volumes

Gross margin

16.7%

16.0%

Up 70 bps primarily due to product mix, including wheels, interim rent and syndication activity

Selling and
administrative expense

$50.3M

$47.0M

Up 7.0% primarily due to higher international business development costs

Gain on disposition
of equipment

$5.8M

$19.2M

Reflects continued rebalancing of lease portfolio

Adjusted EBITDA

$79.1M

$76.9M

Improved performance of unconsolidated operations

Effective tax rate

(21.0%)

33.3%

Reflects impact of the Tax Act; expected second half rate of 27%

Earnings (loss) from
unconsolidated affiliates

$0.1M

($2.9M)

Improvements in Brazilian operations

Net earnings attributable
to noncontrolling interest

($3.6M)

($7.1M)

Change driven primarily by timing of railcar syndications at our GIMSA JV

Net earnings attributable
to Greenbrier

$61.6M

$26.3M

Includes $29.2 million of tax benefit related to the Tax Act

Diluted EPS

$1.91

$0.83

Includes $0.89 per share related to the Tax Act

Segment Summary


Q2 FY18

Q1 FY18

Sequential Comparison – Main Drivers

Manufacturing

  Revenue

$511.8M

$451.5M

Up 13.4% primarily attributable to higher volume of deliveries

  Gross margin

16.2%

15.6%

Up 60 bps primarily due to product mix and higher syndication activity

  Operating margin (1)

12.3%

11.7%


  Deliveries (2)

4,300

4,000


Wheels & Parts

  Revenue

$88.7M

$78.0M

Up 13.7% primarily attributable to higher wheel and component volumes

  Gross margin

9.0%

7.1%

Up 190 bps due to increased volumes and operating efficiencies

  Operating margin (1)

5.8%

3.1%


Leasing & Services

  Revenue

$28.8M

$30.0M

Down 4.0% due to lower volume of externally sourced railcar syndications 

  Gross margin

51.0%

43.9%

Up 710 bps primarily due to higher management fees and interim rent

  Operating margin (1) (3)

56.0%

93.8%


  Lease fleet utilization

92.2%

91.8%


(1) See supplemental segment information on page 11 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 not included in gross margin.

Conference Call

Greenbrier will host a teleconference to discuss its second quarter 2018 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. 
Teleconference details are as follows:

  • April 6, 2018
  • 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 and Romania that serves customers across Europe and in the nations of the GCC. Greenbrier builds freight railcars and rail castings in Brazil through two separate strategic partnerships. We are a leading provider of wheel services, parts, railcar management & regulatory compliance services and leasing services to railroads and related transportation industries in North America.  Greenbrier offers freight railcar repair, refurbishment and retrofitting services in North America through a joint venture partnership with Watco Companies, LLC. Through other unconsolidated joint ventures, we produce rail and industrial castings, tank heads and other components and have an ownership stake in a leasing warehouse. Greenbrier owns a lease fleet of over 8,400 railcars and performs management services for 359,000 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 "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, 2017, Greenbrier's Quarterly Report on Form 10-Q for the fiscal quarter ended November 30, 2017, 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 is not a financial measure under generally accepted accounting principles (GAAP). This metric is a performance measurement tool commonly used by rail supply companies and Greenbrier. You should not consider this metric in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because this metric is not a measure of financial performance under GAAP and is susceptible to varying calculations, this measure presented may differ from and may not be comparable to similarly titled measures used by other companies.

We define Adjusted EBITDA as Net earnings before Interest and foreign exchange, Income tax expense (benefit) and Depreciation and amortization. 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.

THE GREENBRIER COMPANIES, INC.

Consolidated Balance Sheets

(In thousands, unaudited)



February 28,
2018

November 30,

2017

August 31,

2017

May 31,

2017

February 28,

2017

Assets






   Cash and cash equivalents

$    586,008

$    591,406

$    611,466

$    465,413

$    545,752

   Restricted cash

8,875

8,839

8,892

8,753

8,696

   Accounts receivable, net 

321,795

315,393

279,964

267,830

295,844

   Inventories

408,419

411,371

400,127

414,012

381,439

   Leased railcars for syndication

168,748

130,991

91,272

149,119

98,398

   Equipment on operating leases, net

258,417

274,598

315,941

315,976

298,269

   Property, plant and equipment, net

429,465

426,961

428,021

330,471

325,325

   Investment in unconsolidated affiliates

98,009

101,529

108,255

110,058

90,762

   Intangibles and other assets, net

83,308

83,819

85,177

68,930

68,228

   Goodwill

69,011

67,783

68,590

43,265

43,265


$ 2,432,055

$ 2,412,690

$ 2,397,705

$ 2,173,827

$ 2,155,978







Liabilities and Equity






   Revolving notes

$        7,990

$        6,885

$        4,324

$               -

$               -

   Accounts payable and accrued liabilities

461,088

441,373

415,061

339,001

372,321

   Deferred income taxes

41,257

69,984

75,791

80,482

65,589

   Deferred revenue

85,886

120,044

129,260

82,006

85,441

   Notes payable, net

559,755

558,987

558,228

532,638

532,596







Contingently redeemable noncontrolling interest

33,046

35,209

36,148

-

-







   Total equity - Greenbrier

1,095,447

1,032,557

1,018,130

986,221

942,084

   Noncontrolling interest

147,586

147,651

160,763

153,479

157,947

   Total equity

1,243,033

1,180,208

1,178,893

1,139,700

1,100,031


$ 2,432,055

$ 2,412,690

$ 2,397,705

$ 2,173,827

$ 2,155,978

 

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,


2018


2017


2018


2017

Revenue








        Manufacturing

$         511,827


$        445,504


$      963,312


$        899,537

        Wheels & Parts

88,710


82,714


166,721


152,349

        Leasing & Services

28,799


38,064


58,838


66,710


629,336


566,282


1,188,871


1,118,596

Cost of revenue








        Manufacturing

429,165


346,653


810,015


703,208

        Wheels & Parts

80,708


75,497


153,214


140,475

        Leasing & Services

14,116


25,207


30,981


43,237


523,989


447,357


994,210


886,920









Margin

105,347


118,925


194,661


231,676









Selling and administrative expense

50,294


39,495


97,337


80,708

Net gain on disposition of equipment

(5,817)


(2,090)


(24,988)


(3,212)

Earnings from operations

60,870


81,520


122,312


154,180









Other costs








Interest and foreign exchange

7,029


5,673


14,049


7,397

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

 

53,841


 

75,847


 

108,263


 

146,783

Income tax benefit (expense)

11,301


(24,858)


(6,834)


(45,244)

Earnings before earnings (loss) from unconsolidated affiliates

 

65,142


 

50,989


 

101,429


 

101,539

Earnings (loss) from unconsolidated affiliates

147


(1,988)


(2,763)


(4,572)

 

Net earnings

 

65,289


 

49,001


 

98,666


 

96,967

Net earnings attributable to noncontrolling interest

(3,647)


(14,465)


(10,771)


(37,469)









Net earnings attributable to Greenbrier

$          61,642


$        34,536


$          87,895


$           59,498









Basic earnings per common share:

$              2.10


$            1.19


$              3.00


$              2.04









Diluted earnings per common share:

$              1.91


$            1.09


$              2.74


$              1.88









Weighted average common shares:








Basic

29,355


29,130


29,343


29,113

Diluted

32,711


32,427


32,703


32,423









Dividends declared per common share

$              0.23


$            0.21


$              0.46


$              0.42

 

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Cash Flows

(In thousands, unaudited)





 Six Months Ended

February 28,




2018


2017

Cash flows from operating activities:






    Net earnings


$

98,666


$       96,967

    Adjustments to reconcile net earnings to net cash

      provided by (used in) operating activities:






      Deferred income taxes



(35,080)


2,272

      Depreciation and amortization



36,454


30,580

      Net gain on disposition of equipment



(24,988)


(3,212)

      Accretion of debt discount



2,060


330

      Stock based compensation expense



12,574


10,854

      Noncontrolling interest adjustments



(2,555)


(3,255)

      Other



958


548

      Decrease (increase) in assets:






          Accounts receivable, net



(25,681)


(67,271)

          Inventories



(10,211)


(17,673)

          Leased railcars for syndication



(74,129)


37,903

          Other



10,434


5,550

    Increase (decrease) in liabilities:






          Accounts payable and accrued liabilities



46,434


1,718

          Deferred revenue



(42,589)


(10,468)

    Net cash provided by (used in) operating activities



(7,653)


84,843

Cash flows from investing activities:






    Proceeds from sales of assets



105,142


19,898

    Capital expenditures



(53,503)


(21,194)

    Decrease in restricted cash



17


15,583

    Investment in and advances to unconsolidated affiliates



(17,739)


(550)

    Other



1,207


550

    Net cash provided by investing activities



35,124


14,287

Cash flows from financing activities:






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



3,666


-

    Proceeds from issuance of notes payable



13,929


275,000

    Repayments of notes payable



(16,056)


(3,719)

    Investment by joint venture partner



6,500


-

    Debt issuance costs



-


(9,450)

    Dividends



(13,546)


(12,138)

    Cash distribution to joint venture partner



(41,758)


(19,486)

    Excess tax deficiency from restricted stock awards



-


(2,453)

    Tax payments for net share settlement of restricted stock



(5,199)


(2,981)

    Net cash provided by (used in) financing activities



(52,464)


224,773

    Effect of exchange rate changes



(465)


(830)

    Increase (decrease) in cash and cash equivalents



(25,458)


323,073

Cash and cash equivalents






Beginning of period



611,466


222,679

End of period


$

586,008


$       545,752













 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

  (In thousands, except per share amounts, unaudited)


Operating Results by Quarter for 2018 are as follows:


First


Second


Total







Revenue






   Manufacturing

$         451,485


$       511,827


$          963,312

   Wheels & Parts

78,011


88,710


166,721

   Leasing & Services

30,039


28,799


58,838


559,535


629,336


1,188,871

Cost of revenue






   Manufacturing

380,850


429,165


810,015

   Wheels & Parts

72,506


80,708


153,214

   Leasing & Services

16,865


14,116


30,981


470,221


523,989


994,210







Margin

89,314


105,347


194,661







Selling and administrative expense

47,043


50,294


97,337

Net gain on disposition of equipment

(19,171)


(5,817)


(24,988)

Earnings from operations

61,442


60,870


122,312







Other costs






Interest and foreign exchange

7,020


7,029


14,049

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

54,422


53,841


108,263

Income tax benefit (expense)

(18,135)


11,301


(6,834)

Earnings before earnings (loss) from unconsolidated affiliates

36,287


65,142


101,429

Earnings (loss) from unconsolidated affiliates

(2,910)


147


(2,763)

Net earnings

33,377


65,289


98,666

Net earnings attributable to noncontrolling interest

(7,124)


(3,647)


(10,771)

Net earnings attributable to Greenbrier

$        26,253


$           61,642


$            87,895







Basic earnings per common share (1)

$                0.90


$                2.10


$                 3.00

Diluted earnings per common share (1)

$                0.83


$                1.91


$                 2.74



(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 subject to performance criteria, for which actual levels of performance above target have been achieved, using the treasury stock method when dilutive and the dilutive effect of shares underlying the 2018 Convertible Notes using the "if converted" method in which debt issuance and interest costs, net of tax, were added back to net earnings.

 


THE GREENBRIER COMPANIES, INC.

Supplemental Information

 (In thousands, except per share amounts, unaudited)


Operating Results by Quarter for 2017 are as follows:


First


Second


Third


Fourth


Total











Revenue










   Manufacturing

$        454,033


$      445,504


$       317,104


$     508,547


$  1,725,188

   Wheels & Parts

69,635


82,714


85,231


75,099


312,679

   Leasing & Services

28,646


38,064


36,826


27,761


131,297


552,314


566,282


439,161


611,407


2,169,164

Cost of revenue










   Manufacturing

356,555


346,653


245,228


425,531


1,373,967

   Wheels & Parts

64,978


75,497


77,985


69,876


288,336

   Leasing & Services

18,030


25,207


26,247


16,078


85,562


439,563


447,357


349,460


511,485


1,747,865











Margin

112,751


118,925


89,701


99,922


421,299











Selling and administrative expense

41,213


39,495


42,810


47,089


170,607

Net gain on disposition of equipment

(1,122)


(2,090)


(1,581)


(4,947)


(9,740)

Earnings from operations

72,660


81,520


48,472


57,780


260,432











Other costs










   Interest and foreign exchange

1,724


5,673


7,894


8,901


24,192

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

 

70,936


 

75,847


 

40,578


 

48,879


 

236,240

Income tax expense

(20,386)


(24,858)


(8,656)


(10,114)


(64,014)

Earnings before earnings (loss) from unconsolidated affiliates          

 

50,550


 

50,989


 

31,922


 

38,765


 

172,226

Earnings (loss) from unconsolidated affiliates

(2,584)


(1,988)


(681)


(6,511)


(11,764)

Net earnings

47,966


49,001


31,241


32,254


160,462

Net earnings attributable to noncontrolling interest

(23,004)


(14,465)


1,582


(8,508)


(44,395)

Net earnings attributable to Greenbrier

$        24,962


$         34,536


$         32,823


$      23,746


$     116,067











Basic earnings per common share (1)

$             0.86


$            1.19


$            1.12


$          0.81


$           3.97

Diluted earnings per common share (1)

$             0.79


$            1.09


$            1.03


$          0.75


$           3.65



(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 subject to performance criteria, for which actual levels of performance above target have been achieved, using the treasury stock method when dilutive and the dilutive effect of shares underlying the 2018 Convertible Notes using the "if converted" method in which debt issuance and interest costs, net of tax, were added back to net earnings.

 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

 (In thousands, unaudited)


Segment Information


Three months ended February 28, 2018:











Revenue


Earnings (loss) from operations



External


Intersegment


  Total


External


Intersegment


Total


Manufacturing

$           511,827


$             13,948


$         525,775


$           63,185


$               3,415


$       66,600


Wheels & Parts

88,710


8,951


97,661


5,119


780


5,899


Leasing & Services

28,799


4,365


33,164


16,114


3,794


19,908


Eliminations

-


(27,264)


(27,264)


-


(7,989)


(7,989)


Corporate

-


-


-


(23,548)


-


(23,548)



$           629,336


$                      -


$         629,336


$           60,870


$                      -


$      60,870












Three months ended November 30, 2017:











Revenue


Earnings (loss) from operations



External


Intersegment


  Total


External


Intersegment


Total


Manufacturing

$           451,485


$             16,804


$         468,289


$           52,969


$               4,186


$       57,155


Wheels & Parts

78,011


7,732


85,743


2,418


748


3,166


Leasing & Services

30,039


1,605


31,644


28,190


1,372


29,562


Eliminations

-


(26,141)


(26,141)


-


(6,306)


(6,306)


Corporate

-


-


-


(22,135)


-


(22,135)



$           559,535


$                      -


$         559,535


$           61,442


$                       -


$       61,442






Total assets





   February 28,
2018


November 30,
2017


Manufacturing

$               911,505


$             915,918


Wheels & Parts

260,077


262,349


Leasing & Services

565,626


535,847


Unallocated

694,847


698,576



$            2,432,055


$          2,412,690


Information for the GBW Joint Venture, which is Greenbrier's fourth reportable segment and which is accounted for under the equity method of accounting, is included in the table below.  Information included in the table below represents totals for GBW Railcar Services LLC (GBW) rather than Greenbrier's 50% share, as this is how performance and resource allocation is evaluated.


As of and for the

Three Months Ended     




February 28,
2018  


November 30,
2017 



Revenue

$                 62,700


$                 58,000



Loss from operations

$                 (5,500)


$                 (5,700)



Total assets

$               208,500


$               204,300














 

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,

2018


November 30,
2017

Net earnings

$             65,289


$             33,377

Interest and foreign exchange

7,029


7,020

Income tax expense (benefit)

(11,301)


18,135

Depreciation and amortization

18,084


18,370

Adjusted EBITDA

$             79,101


$             76,902

 





 

Three Months
Ended

February 28,
2018

Backlog Activity (units)(1)




Beginning backlog

26,500

Orders received

3,400

Production held as Leased railcars for syndication

(1,150)

Production sold directly to third parties

(4,650)

Ending backlog

24,100



Delivery Information (units)(1)


Production sold directly to third parties

4,650

Sales of Leased railcars for syndication

250

Total deliveries

4,900



(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 and diluted earnings per share

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



Three Months Ended


February 28,
2018

  November 30,
2017

Weighted average basic common shares outstanding (1)

29,355

29,332

Dilutive effect of convertible notes (2)

3,349

3,331

Dilutive effect of performance awards (3)

7

33

Weighted average diluted common shares outstanding

32,711

32,696




(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 was included as they were considered dilutive under the "if converted" method as further discussed below.

(3)

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.

Diluted earnings per share was calculated using the more dilutive of two approaches.  The first approach includes the dilutive effect of using the treasury stock method, associated with shares underlying the 2024 Convertible notes and performance based restricted stock units that are subject to performance criteria, for which actual levels of performance above target have been achieved. The second approach supplements the first by including the "if converted" effect of the 2018 Convertible notes. 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 2024 Convertible notes are included in the calculation of both approaches using the treasury stock method when the average stock price is greater than the applicable conversion price.


Three Months Ended


  February 28,

      2018

 November 30,

  2017

Net earnings attributable to Greenbrier

$           61,642

$           26,253

Add back:



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

843

733

Earnings before interest and debt issuance costs on convertible notes

$           62,485

$           26,986

Weighted average diluted common shares outstanding

32,711

32,696




Diluted earnings per share

$                  1.91

$               0.83

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/greenbrier-reports-second-quarter-results-300625487.html

SOURCE The Greenbrier Companies, Inc. (GBX)

Copyright 2018 PR Newswire

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