Greenbrier Reports Third Quarter Results

Date : 06/29/2018 @ 6:00AM
Source : PR Newswire (US)
Stock : Greenbrier Companies (The) (GBX)
Quote : 55.1  0.0 (0.00%) @ 7:57AM

Greenbrier Reports Third Quarter Results

Greenbrier (NYSE:GBX)
Historical Stock Chart

1 Month : From Jun 2018 to Jul 2018

Click Here for more Greenbrier Charts.

LAKE OSWEGO, Ore., June 29, 2018 /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE: GBX) today reported financial results for its third fiscal quarter ended May 31, 2018.

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

Third Quarter Highlights

  • Net earnings attributable to Greenbrier for the quarter were $33.0 million, or $1.01 per diluted share, on revenue of $641.4 million.  Quarterly results include $9.5 million, net of tax, ($0.29 per share) impact associated with a non-cash goodwill impairment charge recorded by GBW, our 50/50 joint venture with Watco Companies, LLC.
  • Adjusted net earnings attributable to Greenbrier for the quarter were $42.4 million, or $1.30 per diluted share.
  • Adjusted EBITDA for the quarter was $86.9 million, or 13.6% of revenue.
  • Orders for 6,000 diversified railcars were received during the quarter, valued at over $600 million. Book-to-bill of 1.1x is the highest since May 2017.
  • New railcar backlog as of May 31, 2018 was 24,200 units with an estimated value of $2.3 billion.
  • New railcar deliveries totaled 5,600 units for the quarter.
  • Board declares quarterly dividend of $0.25 per share, payable on August 9, 2018 to shareholders as of July 19, 2018.
  • Cash provided by operating activities was $87.3 million for the quarter.
  • Annual earnings guidance of $5.00 per diluted share is reaffirmed.  Guidance excludes $0.29 per share related to the goodwill impairment and includes the Q2 $0.70 per share non-recurring net benefit from the 2017 Tax Cut and Jobs Act ("Tax Act").

William A. Furman, Chairman and CEO, said, "Greenbrier produced strong operating and financial results in the third fiscal quarter, highlighted by healthy gross margins, a strong balance sheet and the highest quarterly order activity this fiscal year.  Greenbrier's strategy is to strengthen core North American markets while making demonstrable advancements in international railcar markets.  This strategy is succeeding.  With North American railcar loadings increasing and improving indicators for the U.S. and global economies, current industry fundamentals remain favorable for most of Greenbrier's business segments. GBW continues to underperform expectations.  We intend to eliminate this headwind to Greenbrier's financial performance and will soon share plans to resolve GBW's challenges."

Furman continued, "We are encouraged by the 6,000 new railcar orders we received in the third quarter.  Order activity continues to be broad-based and diversified, originating primarily in the improving North American market.  Looking forward, we expect to see continued order strength in North America and internationally, but do not expect order activity to be linear.  Backlog is a key indicator of future earnings and cash flow generation.  At quarter-end, Greenbrier had diversified backlog of 24,200 units with an estimated value of $2.3 billion."

Furman concluded, "Greenbrier's flexibility and creativity allow us to navigate the current market environment successfully.  We remain confident in our long-term strategy and integrated business model.  We are narrowing and reaffirming the guidance targets laid out earlier in the year."

Business Outlook

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

  • Deliveries will be approximately 20,000 – 21,000 units including Greenbrier-Maxion (Brazil) which will account for up to 10% of deliveries
  • Revenue will be approximately $2.5 billion
  • Diluted EPS will be $5.00 excluding $0.29 per share related to the GBW goodwill impairment and including the Q2 $0.70 per share non-recurring net benefit from the Tax Act

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

Financial Summary


Q3
FY18

Q2 FY18

Sequential Comparison – Main Drivers

Revenue

$641.4M

$629.3M

Up 1.9% primarily due to higher wheel and component volumes and higher external syndication activity

Gross margin

16.9%

16.7%

Up 20 bps primarily due to product mix, including wheels, higher management fees and increased syndication activity

Selling and

administrative expense

$51.8M

$50.3M

Up 3.0% primarily due to higher employee related costs including long term incentive compensation

Net gain on disposition

of equipment

$14.8M

$5.8M

Reflects continued rebalancing of lease portfolio

Adjusted EBITDA

$86.9M

$79.1M

Higher gain on sale and operating margin

Effective tax rate

24.5%

(21.0%)

Q2 included non-recurring benefit from the Tax Act

Earnings (loss) from

unconsolidated affiliates

($12.8M) 1

$0.1M


Adjusted net earnings attributable to Greenbrier

$42.4M

$61.6M2


Adjusted diluted EPS

$1.30

$1.912


(1) Includes $9.5 million, net of tax, or $0.29 per share, impact associated with a non-cash goodwill impairment charge recorded by GBW.
(2) Q2 included a non-recurring net benefit of $22.9 million, or $0.70 per share, from the Tax Act.

Segment Summary


Q3 FY18

Q2 FY18

Sequential Comparison – Main Drivers

Manufacturing

  Revenue

$510.1M

$511.8M

Primarily attributable to product mix

  Gross margin

16.1%

16.2%

Continued strong performance

  Operating margin (1)

12.2%

12.3%


  Deliveries (2)

5,100

4,300

Increased syndication activity

Wheels & Parts

  Revenue

$94.5M

$88.7M

Up 6.5% primarily attributable to seasonally higher wheel and component volumes

  Gross margin

9.2%

9.0%

Improved operating efficiencies

  Operating margin (1)

5.9%

5.8%


Leasing & Services

  Revenue

$36.8M

$28.8M

Up 27.8% primarily due to higher volume of externally sourced railcar syndications and interim rent

  Gross margin

47.9%

51.0%

Down primarily due to lower margins on externally sourced railcar syndications

  Operating margin (1) (3)

72.6%

56.0%


  Lease fleet utilization

90.4%

92.2%


(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 not included in gross margin.

Conference Call

Greenbrier will host a teleconference to discuss its third quarter 2018 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. 

Teleconference details are as follows:

  • June 29, 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-Astra Rail 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 GBW, a joint venture with Watco Companies, LLC. Through other unconsolidated joint ventures, we produce tank heads and other components and have an ownership stake in a leasing warehouse. Greenbrier owns a lease fleet of 7,900 railcars and performs management services for 356,000 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 February 28, 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 and Adjusted diluted EPS 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. We believe this assists in comparing our performance across reporting periods.

THE GREENBRIER COMPANIES, INC.

Consolidated Balance Sheets

(In thousands, unaudited)



May 31,

2018

Feb. 28,

2018

Nov. 30,

2017

Aug. 31,

2017

May 31,

2017

Assets






   Cash and cash equivalents

$    589,969

$    586,008

$    591,406

$    611,466

$    465,413

   Restricted cash

9,204

8,875

8,839

8,892

8,753

   Accounts receivable, net 

322,328

321,795

315,393

279,964

267,830

   Inventories

396,518

408,419

411,371

400,127

414,012

   Leased railcars for syndication

158,194

168,748

130,991

91,272

149,119

   Equipment on operating leases, net

302,074

258,417

274,598

315,941

315,976

   Property, plant and equipment, net

424,035

429,465

426,961

428,021

330,471

   Investment in unconsolidated affiliates

75,884

98,009

101,529

108,255

110,058

   Intangibles and other assets, net

82,030

83,308

83,819

85,177

68,930

   Goodwill

70,347

69,011

67,783

68,590

43,265


$ 2,430,583

$ 2,432,055

$ 2,412,690

$ 2,397,705

$ 2,173,827







Liabilities and Equity






   Revolving notes

$      20,337

$        7,990

$        6,885

$        4,324

$               -

   Accounts payable and accrued liabilities

447,827

461,088

441,373

415,061

339,001

   Deferred income taxes

36,657

41,257

69,984

75,791

80,482

   Deferred revenue

102,919

85,886

120,044

129,260

82,006

   Notes payable, net

437,833

559,755

558,987

558,228

532,638







Contingently redeemable noncontrolling interest

31,135

33,046

35,209

36,148

-







   Total equity - Greenbrier

1,225,512

1,095,447

1,032,557

1,018,130

986,221

   Noncontrolling interest

128,363

147,586

147,651

160,763

153,479

   Total equity

1,353,875

1,243,033

1,180,208

1,178,893

1,139,700


$ 2,430,583

$ 2,432,055

$ 2,412,690

$ 2,397,705

$ 2,173,827

 

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Income

(In thousands, except per share amounts, unaudited)



Three Months Ended

May 31,

Nine Months Ended

May 31,


2018


2017


2018


2017

Revenue









        Manufacturing

$      510,099


$      317,104


$    1,473,411


$     1,216,641


        Wheels & Parts

94,515


85,231


261,236


237,580


        Leasing & Services

36,773


36,826


95,611


103,536



641,387


439,161


1,830,258


1,557,757


Cost of revenue









        Manufacturing

427,875


245,228


1,237,890


948,436


        Wheels & Parts

85,850


77,985


239,064


218,460


        Leasing & Services

19,155


26,247


50,136


69,484



532,880


349,460


1,527,090


1,236,380











Margin

108,507


89,701


303,168


321,377











Selling and administrative expense

51,793


42,810


149,130


123,518


Net gain on disposition of equipment

(14,825)


(1,581)


(39,813)


(4,793)


Earnings from operations

71,539


48,472


193,851


202,652











Other costs









Interest and foreign exchange

6,533


7,894


20,582


15,291


Earnings before income tax and loss from unconsolidated affiliates

65,006


40,578


173,269


187,361


Income tax expense

(15,944)


(8,656)


(22,778)


(53,900)


Earnings before loss from unconsolidated affiliates

49,062


31,922


150,491


133,461


Loss from unconsolidated affiliates

(12,823)


(681)


(15,586)


(5,253)


Net earnings

36,239


31,241


134,905


128,208


Net (earnings) loss attributable to noncontrolling interest

(3,288)


1,582


(14,059)


(35,887)











Net earnings attributable to Greenbrier

$          32,951


$        32,823


$        120,846


$           92,321











Basic earnings per common share:

$              1.03


$            1.12


$              3.99


$              3.16











Diluted earnings per common share:

$              1.01


$            1.03


$              3.75


$              2.91











Weighted average common shares:









Basic

32,034


29,348


30,250


29,192


Diluted

32,914


32,690


32,774


32,515











Dividends declared per common share

$              0.25


$            0.22


$              0.71


$              0.64


 


THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Cash Flows

(In thousands, unaudited)




Nine Months Ended
May 31,




2018


2017


Cash flows from operating activities:







    Net earnings


$

134,905


$       128,208


    Adjustments to reconcile net earnings to net cash

      provided by operating activities:







      Deferred income taxes



(38,825)


16,815


      Depreciation and amortization



55,161


46,616


      Net gain on disposition of equipment



(39,813)


(4,793)


      Accretion of debt discount



3,109


1,329


      Stock based compensation expense



20,311


19,007


     Noncontrolling interest adjustments



1,067


1,203


      Other



1,345


1,017


      (Increase) decrease in assets:







          Accounts receivable, net



(24,980)


(27,109)


          Inventories



(4,270)


(47,209)


          Leased railcars for syndication



(69,994)


(16,122)


          Other



30,549


8,419


    Increase (decrease) in liabilities:







          Accounts payable and accrued liabilities



34,898


(35,800)


          Deferred revenue



(23,837)


(13,650)


    Net cash provided by operating activities



79,626


77,931


Cash flows from investing activities:







    Proceeds from sales of assets



129,828


20,344


    Capital expenditures



(118,656)


(53,848)


    Decrease in restricted cash



(312)


15,526


   Investment in and advances to unconsolidated affiliates



(21,455)


(34,068)


    Cash distribution from unconsolidated affiliates



3,941


550


    Net cash used in investing activities



(6,654)


(51,496)


Cash flows from financing activities:







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



16,013


-


    Proceeds from issuance of notes payable



13,749


275,000


   Repayments of notes payable



(19,274)


(5,469)


   Debt issuance costs



-


(9,082)


    Dividends



(21,866)


(18,619)


    Cash distribution to joint venture partner



(69,413)


(27,267)


    Investment by joint venture partner



6,500


-


   Tax payments for net share settlement of restricted stock



(7,716)


(5,208)


   Excess tax deficiency from restricted stock awards



-


(2,396)


    Net cash provided by (used in) financing activities



(82,007)


206,959


    Effect of exchange rate changes



(12,462)


9,340


    Increase (decrease) in cash and cash equivalents



(21,497)


242,734


Cash and cash equivalents







Beginning of period



611,466


222,679


End of period


$

589,969


$       465,413























 

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

Total










Revenue








   Manufacturing

$         451,485


$         511,827


$    510,099

$    1,473,411


   Wheels & Parts

78,011


88,710


94,515

261,236


   Leasing & Services

30,039


28,799


36,773

95,611



559,535


629,336


641,387

1,830,258


Cost of revenue








   Manufacturing

380,850


429,165


427,875

1,237,890


   Wheels & Parts

72,506


80,708


85,850

239,064


   Leasing & Services

16,865


14,116


19,155

50,136



470,221


523,989


532,880

1,527,090










Margin

89,314


105,347


108,507

303,168










Selling and administrative expense

47,043


50,294


51,793

149,130


Net gain on disposition of equipment

(19,171)


(5,817)


(14,825)

(39,813)


Earnings from operations

61,442


60,870


71,539

193,851










Other costs








Interest and foreign exchange

7,020


7,029


6,533

20,582


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

54,422


53,841


65,006

173,269


Income tax benefit (expense)

(18,135)


11,301


(15,944)

(22,778)


Earnings before earnings (loss) from unconsolidated affiliates

36,287


65,142


49,062

150,491


Earnings (loss) from unconsolidated affiliates

(2,910)


147


(12,823)

(15,586)


Net earnings

33,377


65,289


36,239

134,905


Net earnings attributable to noncontrolling interest

(7,124)


(3,647)


(3,288)

(14,059)


Net earnings attributable to Greenbrier

$            26,253


$            61,642


$      32,951

$        120,846










Basic earnings per common share (1)

$                0.90


$                2.10


$          1.03

$              3.99


Diluted earnings per common share (1) 

$                0.83


$                1.91


$          1.01

$              3.75




(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, using the treasury stock method but includes restricted stock units that are not considered participating securities, restricted stock units that are subject to performance criteria, for which actual levels of performance above target have been achieved, and the dilutive effect of shares underlying the 2018 Convertible Notes using the "if converted" method, during the periods in which they were outstanding, 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 May 31, 2018:





















Revenue


Earnings (loss) from operations



External


Intersegment


  Total


External


Intersegment


Total


Manufacturing

$           510,099


$             53,501


$         563,600


$           62,435


$               6,215


$       68,650


Wheels & Parts

94,515


10,879


105,394


5,546


686


6,232


Leasing & Services

36,773


3,886


40,659


26,704


3,380


30,084


Eliminations

-


(68,266)


(68,266)


-


(10,281)


(10,281)


Corporate

-


-


-


(23,146)


-


(23,146)



$           641,387


$                      -


$         641,387


$           71,539


$                      -


$      71,539






















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







Total assets



   May 31,

2018


February 28,

2018


Manufacturing

$               924,869


$               911,505


Wheels & Parts

243,641


260,077


Leasing & Services

578,259


565,626


Unallocated

683,814


694,847



$            2,430,583


$            2,432,055


Information for GBW, 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 rather than Greenbrier's 50% share, as this is how performance and resource allocation is evaluated.


As of and for the

Three Months Ended     



May 31,
2018


February 28,
2018


Revenue

$                 67,200


$                 62,700


Loss from operations

$                (29,500)


$                  (5,500)


Total assets

$               177,800


$               208,500












During the third quarter of 2018, GBW recorded a pre-tax impairment loss of $26.4 million. Our share of the non-cash impairment was $9.5 million after-tax ($0.29 per share) and is included as part of Loss from unconsolidated affiliates on our Consolidated Statement of Income.

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,

2018


February 28,

2018



Net earnings

$             36,239


$               65,289



Interest and foreign exchange

6,533


7,029



Income tax expense (benefit)

15,944


(11,301))



Depreciation and amortization

18,707


18,084



GBW goodwill impairment

9,493


-









Adjusted EBITDA

$                86,916


$               79,101










 




Three Months Ended



May 31, 2018

Backlog Activity (units) (1)






Beginning backlog

24,100



Orders received

6,000



Production held as Leased railcars for syndication

(1,600)



Production sold directly to third parties

(4,300)



Ending backlog

24,200







Delivery Information (units) (1)




Production sold directly to third parties

4,300



Sales of Leased railcars for syndication

1,300



Total deliveries

5,600





(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


May 31,

2018

February 28,

2018

Weighted average basic common shares outstanding (1)

32,034

29,355

Dilutive effect of convertible notes (2)

655

3,349

Dilutive effect of restricted stock units (3)

225

7

Weighted average diluted common shares outstanding

32,914

32,711




(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 2018 Convertible notes was included as they were considered dilutive under the "if converted" method as further discussed below. The 2018 Convertible notes matured April 1, 2018.

(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.

Diluted EPS was calculated using the more dilutive of two approaches.  The first approach includes the dilutive effect, using the treasury stock method, associated with shares underlying the 2024 Convertible notes, restricted stock units that are not considered participating securities, 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 during the periods in which they were outstanding. 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 when the average stock price is greater than the applicable conversion price.


Three Months Ended


May 31,

2018


February 28,

2018

Net earnings attributable to Greenbrier

$                 32,951


$               61,642

GBW goodwill impairment

9,493


-

Adjusted net earnings attributable to Greenbrier

$                 42,444


$               61,642










Three Months Ended


May 31,

2018


February 28,

2018

Net earnings attributable to Greenbrier

$                 32,951


$               61,642

Add back:




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

297


843

Earnings before interest and debt issuance costs on convertible notes

$                 33,248


$               62,485

Weighted average diluted common shares outstanding

32,914


32,711





Diluted earnings per share

$                     1.01


$                   1.91

GBW goodwill impairment

                       0.29(1)


-

Adjusted diluted earnings per share

$                     1.30


$                   1.91





(1)

GBW goodwill impairment of $9.5 million, net of tax, divided by weighted average diluted common shares outstanding of 32,914 for the three months ended may 31, 2018.

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/greenbrier-reports-third-quarter-results-300674545.html

SOURCE The Greenbrier Companies, Inc. (GBX)

Copyright 2018 PR Newswire

Latest GBX Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.