LAKE OSWEGO, Ore., July 9, 2021 /PRNewswire/ -- The Greenbrier
Companies, Inc. (NYSE: GBX) ("Greenbrier"), a leading international
supplier of equipment and services to global freight transportation
markets, today reported financial results for its third fiscal
quarter ended May 31, 2021.
Third Quarter Highlights
- New railcar orders for 3,800 units valued at $400 million and deliveries of 3,300 units,
resulted in a 1.2x book-to-bill. This is the second consecutive
quarter that book-to-bill exceeded 1.0x. Orders included intermodal
units, tank cars, boxcars and covered hoppers.
- Diversified new railcar backlog as of May 31, 2021 was 24,800 units with an estimated
value of $2.6 billion.
- Liquidity of approximately $850
million, including $628
million in cash and $221
million of available borrowing capacity. Liquidity and
$149 million of initiatives in
progress total nearly $1
billion.
- COVID-19 related expenses for the quarter were $1.9 million (pre-tax) and $8.3 million (pre-tax) for the nine months ended
May 31, 2021.
- Net earnings attributable to Greenbrier for the quarter were
$19.7 million, or $0.59 per diluted share, on revenue of
$450 million. Net earnings included
$3.6 million ($0.10 per share), of loss on extinguishment of
debt, net of tax.
- Adjusted net earnings attributable to Greenbrier for the
quarter were $23.3 million or
$0.69 per diluted share and adjusted
EBITDA for the quarter was $53
million.
- GBX Leasing was formed in the quarter to create stable,
tax-advantaged cash flows with initial railcar funding of nearly
$100 million, under a $300 million non-recourse warehouse credit
facility. GBX Leasing is consolidated in Greenbrier's financial
statements, see supplemental information in this release.
- Debt maturities were extended in the quarter with the issuance
of $374 million of senior convertible
notes due in 2028 and retirement of $257
million of 2024 senior convertible notes.
- Repurchased $20 million of common
stock in connection with the convertible note issuance.
$100 million remains authorized under
the share repurchase plan.
- Board declares a quarterly dividend of $0.27 per share, payable on August 18, 2021 to shareholders of record as of
July 28, 2021 representing
Greenbrier's 29th consecutive quarterly dividend.
William A. Furman, Chairman &
CEO commented, "Greenbrier's financial results for the third fiscal
quarter reflect the steady recovery in our markets that we
forecasted would occur in the second half of our fiscal year. Our
COVID strategy launched in March 2020
has been very successful. We are executing well on plans to
maintain a liquidity base and strong balance sheet as well as
safely operate each of our facilities. All of this has been
necessary to prepare for the now emerging recovery. As
positive momentum continues, we are seizing opportunities to resume
the pursuit of scale we began during the two years prior to the
pandemic. In the third fiscal quarter this included the formation
of GBX Leasing and completion of a strategic debt refinancing that
extended maturities on convertible notes by four years."
Furman added, "We are benefiting from the economic recovery in
railcar manufacturing and leasing as expected. This is playing out
through sequential monthly increases in manufacturing revenues and
a meaningful increase in new order activity in our core North
American markets. The ability to ramp production capacity is
integral to protecting Greenbrier's leadership position in the
market. New orders will not increase linearly, but we expect
commercial activity to remain strong as our $2.6 billion backlog provides a baseload of
orders to support the expanded operation of production lines and
our leasing business."
Business Update & Outlook
Greenbrier's adherence to its core COVID strategy during the
third fiscal quarter produced the best quarterly performance to
date in fiscal 2021. Since March
2020, Greenbrier has practiced disciplined management to
meet the realities of this once in 100 years pandemic. Operating
and commercial momentum is building. In our domestic and
international markets, Greenbrier's core COVID strategy was and
continues to be:
- Maintain a strong liquidity base and balance sheet
- Navigate the COVID-19 pandemic and the related economic crisis
by safely operating our factories while generating cash flow
- Prepare for emerging economic recovery and forward momentum in
our markets. Greenbrier is currently operating in this phase.
Greenbrier is well-positioned to navigate the immediate
challenges of increasing production rates safely amidst the
emerging COVID variants, while ensuring labor and supply chain
continuity.
Looking ahead, Greenbrier expects the fourth quarter to be the
strongest performance of the year. A full quarter of
increased production rates and business activity creates positive
momentum into fiscal 2022.
Financial Summary
|
Q3
FY21
|
Q2
FY21
|
Sequential
Comparison – Main Drivers
|
Revenue
|
$450.1M
|
$295.6M
|
65% higher deliveries
reflecting increased production levels and overall improving demand
environment
|
Gross
margin
|
16.7%
|
6.0%
|
Primarily increased
production rates in Manufacturing and favorable resolution of
warranty & other contingencies in international
operations
|
Selling and
administrative
|
$49.2M
|
$43.4M
|
Increased consulting
and employee-related costs including performance-based compensation
expense
|
Adjusted
EBITDA
|
$52.9M
|
($1.3M)
|
Higher operating
earnings reflecting improving demand environment; See
reconciliation on page 12
|
Net (earnings) loss
attributable to noncontrolling interest
|
($0.3M)
|
$4.9M
|
Increased operating
activity at GIMSA joint venture
|
Adjusted net earnings
(loss) attributable to Greenbrier
|
$23.3M(1)
|
($9.1M)
|
Primarily increased
activity across all business units and tax benefit from lease fleet
investments and operating losses carried back to prior years with
higher tax rates allowable under the CARES Act
|
Adjusted diluted
EPS
|
$0.69(1)
|
($0.28)
|
|
|
(1) Excludes $3.6 million ($0.10 per
share), net of tax, of loss on debt extinguishment.
|
Segment Summary
|
Q3
FY21
|
Q2
FY21
|
Sequential
Comparison – Main Drivers
|
Manufacturing
|
Revenue
|
$341.9M
|
$202.1M
|
Higher deliveries
reflecting improving demand levels
|
Gross
margin
|
14.5%
|
0.2%
|
Higher production
& delivery and favorable resolution of warranty and other
contingencies; Excluding these items, gross margin would be in the
low double digits
|
Operating
margin (1)
|
9.2%
|
(8.5%)
|
|
Deliveries
(2)
|
2,800
|
1,700
|
Higher production
rates
|
Wheels, Repair
& Parts
|
Revenue
|
$80.9M
|
$71.6M
|
Increased demand
levels across the network
|
Gross
margin
|
8.9%
|
6.9%
|
Higher volumes
driving improved performance
|
Operating
margin (1)
|
5.2%
|
3.4%
|
|
Leasing &
Services (including GBX Leasing)
|
Revenue
|
$27.3M
|
$21.9M
|
Revenue and margin
include enhanced syndication financing activity
|
Gross
margin
|
67.6%
|
56.6%
|
Operating
margin (1) (3)
|
44.9%
|
29.3%
|
Fleet
utilization
|
93.8%
|
94.8%
|
|
|
(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 loss (gain) on
disposition of equipment, which is excluded from gross
margin.
|
Conference Call
Greenbrier will host a teleconference to discuss its third
quarter 2021 results. In conjunction with this news release,
Greenbrier has posted a supplemental earnings presentation to our
website.
Teleconference details are as follows:
- July 9, 2021
- 8:00 a.m. Pacific Daylight
Time
- Phone: 1-888-317-6003 (Toll Free) 1-412-317-6061
(International), Entry Number "2776228"
- Real-time Audio Access: ("Newsroom" at
http://www.gbrx.com)
Please access the site 10-15 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.
Through its wholly-owned subsidiaries and joint ventures,
Greenbrier designs, builds and markets freight railcars and marine
barges in North America,
Europe and Brazil. We are a leading provider of freight
railcar wheel services, parts, repair, refurbishment and
retrofitting services in North
America through our wheels, repair & parts business
unit. Greenbrier manages 445,000 railcars and offers railcar
management, regulatory compliance services and leasing services to
railroads and other railcars owners in North America. GBX Leasing (GBXL) is a
special purpose subsidiary that owns and manages a portfolio of
leased railcars that originate primarily from Greenbrier's
manufacturing operations. Together, GBXL and Greenbrier own a lease
fleet of 8,700 railcars. Learn more about Greenbrier at
www.gbrx.com.
THE GREENBRIER
COMPANIES, INC.
|
Consolidated
Balance Sheets
(In thousands,
unaudited)
|
|
|
May
31,
2021
|
February 28,
2021
|
November 30,
2020
|
August
31,
2020
|
May
31,
2020
|
Assets
|
|
|
|
|
|
Cash and
cash equivalents
|
$
628,200
|
$
593,499
|
$
724,547
|
$
833,745
|
$
735,258
|
Restricted cash
|
8,689
|
8,614
|
8,547
|
8,342
|
8,704
|
Accounts
receivable, net
|
274,792
|
236,171
|
216,220
|
230,488
|
261,629
|
Income
tax receivable
|
75,135
|
62,103
|
24,448
|
9,109
|
-
|
Inventories
|
553,137
|
522,984
|
490,282
|
529,529
|
675,442
|
Leased
railcars for syndication
|
154,017
|
109,287
|
51,087
|
107,671
|
136,144
|
Equipment on operating leases, net
|
446,888
|
445,451
|
445,542
|
350,442
|
355,841
|
Property, plant and equipment, net
|
676,010
|
687,468
|
696,333
|
711,524
|
719,155
|
Investment in unconsolidated affiliates
|
79,420
|
70,820
|
72,254
|
72,354
|
75,508
|
Intangibles and other assets, net
|
180,829
|
190,283
|
186,509
|
190,322
|
181,315
|
Goodwill
|
133,050
|
132,685
|
130,315
|
130,308
|
130,035
|
|
$
3,210,167
|
$
3,059,365
|
$
3,046,084
|
$
3,173,834
|
$
3,279,031
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Revolving notes
|
$
325,150
|
$
275,839
|
$
276,248
|
$
351,526
|
$
416,535
|
Accounts
payable and accrued liabilities
|
480,373
|
448,571
|
434,138
|
463,880
|
488,969
|
Deferred
income taxes
|
44,900
|
24,798
|
10,120
|
7,701
|
4,354
|
Deferred
revenue
|
43,676
|
42,572
|
36,916
|
42,467
|
63,536
|
Notes
payable, net
|
835,027
|
793,189
|
797,089
|
804,088
|
806,919
|
|
|
|
|
|
|
Contingently
redeemable noncontrolling interest
|
30,323
|
30,037
|
30,711
|
31,117
|
30,611
|
|
|
|
|
|
|
Total
equity – Greenbrier
|
1,286,763
|
1,268,502
|
1,280,407
|
1,293,043
|
1,291,221
|
Noncontrolling interest
|
163,955
|
175,857
|
180,455
|
180,012
|
176,886
|
Total
equity
|
1,450,718
|
1,444,359
|
1,460,862
|
1,473,055
|
1,468,107
|
|
$
3,210,167
|
$
3,059,365
|
$
3,046,084
|
$
3,173,834
|
$
3,279,031
|
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,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Revenue
|
|
Manufacturing
|
$
341,939
|
|
$
653,007
|
|
$
852,755
|
|
$
1,800,317
|
Wheels,
Repair & Parts
|
80,871
|
|
82,024
|
|
218,050
|
|
259,857
|
Leasing
& Services
|
27,333
|
|
27,526
|
|
77,949
|
|
95,590
|
|
450,143
|
|
762,557
|
|
1,148,754
|
|
2,155,764
|
Cost of
revenue
|
|
|
|
|
|
|
|
Manufacturing
|
292,464
|
|
562,793
|
|
775,125
|
|
1,567,014
|
Wheels,
Repair & Parts
|
73,690
|
|
75,001
|
|
203,341
|
|
241,266
|
Leasing
& Services
|
8,857
|
|
17,232
|
|
36,814
|
|
61,428
|
|
375,011
|
|
655,026
|
|
1,015,280
|
|
1,869,708
|
|
|
|
|
|
|
|
|
Margin
|
75,132
|
|
107,531
|
|
133,474
|
|
286,056
|
|
|
|
|
|
|
|
|
Selling and
administrative expense
|
49,239
|
|
49,494
|
|
136,371
|
|
158,455
|
Net (gain) loss on
disposition of equipment
|
184
|
|
(8,775)
|
|
(765)
|
|
(19,431)
|
Earnings (loss)
from operations
|
25,709
|
|
66,812
|
|
(2,132)
|
|
147,032
|
|
|
|
|
|
|
|
|
Other
costs
|
|
|
|
|
|
|
|
Interest and foreign
exchange
|
10,204
|
|
7,562
|
|
30,875
|
|
33,023
|
Net loss on
extinguishment of debt
|
4,763
|
|
-
|
|
4,763
|
|
-
|
Earnings (loss)
before income tax and earnings from unconsolidated
affiliates
|
10,742
|
|
59,250
|
|
(37,770)
|
|
114,009
|
Income tax benefit
(expense)
|
6,914
|
|
(24,421)
|
|
35,998
|
|
(37,878)
|
Earnings (loss)
before earnings from
unconsolidated affiliates
|
17,656
|
|
34,829
|
|
(1,772)
|
|
76,131
|
Earnings from
unconsolidated affiliates
|
2,379
|
|
1,040
|
|
1,257
|
|
3,764
|
Net earnings
(loss)
|
20,035
|
|
35,869
|
|
(515)
|
|
79,895
|
Net (earnings) loss
attributable to noncontrolling interest
|
(298)
|
|
(8,097)
|
|
1,215
|
|
(30,825)
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Greenbrier
|
$
19,737
|
|
$
27,772
|
|
$
700
|
|
$
49,070
|
|
|
|
|
|
|
|
|
Basic earnings per
common share:
|
$
0.61
|
|
$
0.85
|
|
$
0.02
|
|
$
1.50
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share:
|
$
0.59
|
|
$
0.83
|
|
$
0.02
|
|
$
1.47
|
|
|
|
|
|
|
|
|
Weighted average
common shares:
|
|
|
|
|
|
|
|
Basic
|
32,573
|
|
32,690
|
|
32,726
|
|
32,660
|
Diluted
|
33,605
|
|
33,478
|
|
33,747
|
|
33,414
|
|
|
|
|
|
|
|
|
Dividends per common
share
|
$
0.27
|
|
$
0.27
|
|
$
0.81
|
|
$
0.79
|
|
|
|
|
|
|
|
|
|
THE GREENBRIER
COMPANIES, INC.
|
Consolidated
Statements of Cash Flows
(In thousands,
unaudited)
|
|
|
|
|
Nine Months
Ended
May
31,
|
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
Net earnings (loss)
|
|
$
|
(515)
|
|
$
|
79,895
|
Adjustments to reconcile net earnings (loss) provided by (used
in)
operating
activities:
|
|
|
|
|
|
|
Deferred income taxes
|
|
|
20,197
|
|
|
(11,450)
|
Depreciation and amortization
|
|
|
75,637
|
|
|
82,452
|
Net gain on disposition of equipment
|
|
|
(765)
|
|
|
(19,431)
|
Accretion of debt discount
|
|
|
4,639
|
|
|
4,102
|
Stock based compensation expense
|
|
|
12,468
|
|
|
8,265
|
Net loss on extinguishment of debt
|
|
|
4,763
|
|
|
-
|
Noncontrolling interest adjustments
|
|
|
343
|
|
|
2,826
|
Other
|
|
|
1,729
|
|
|
568
|
Decrease (increase) in assets:
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
(49,160)
|
|
|
110,431
|
Income tax receivable
|
|
|
(66,026)
|
|
|
-
|
Inventories
|
|
|
(92,294)
|
|
|
12,555
|
Leased railcars for syndication
|
|
|
(55,532)
|
|
|
(38,826)
|
Other assets
|
|
|
863
|
|
|
(59,212)
|
Increase (decrease) in liabilities:
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
18,626
|
|
|
(77,243)
|
Deferred revenue
|
|
|
1,189
|
|
|
(5,900)
|
Net cash provided by (used in) operating activities
|
|
|
(123,838)
|
|
|
89,032
|
Cash flows from
investing activities
|
|
|
|
|
|
|
Proceeds from sales of assets
|
|
|
12,156
|
|
|
78,521
|
Capital expenditures
|
|
|
(62,774)
|
|
|
(55,326)
|
Investments in and advances to/repayments from unconsolidated
affiliates
|
|
|
674
|
|
|
(1,500)
|
Cash
distribution from unconsolidated affiliates and other
|
|
|
652
|
|
|
11,273
|
Net cash provided by (used in) investing activities
|
|
|
(49,292)
|
|
|
32,968
|
Cash flows from
financing activities
|
|
|
|
|
|
|
Net change in revolving notes with maturities of 90 days or
less
|
|
|
147,571
|
|
|
214,932
|
Proceeds from revolving notes with maturities longer than 90
days
|
|
|
112,000
|
|
|
175,000
|
Repayments of revolving notes with maturities longer than 90
days
|
|
|
(286,000)
|
|
|
-
|
Proceeds from issuance
of notes payable
|
|
|
373,750
|
|
|
-
|
Repayments of notes payable
|
|
|
(308,468)
|
|
|
(24,002)
|
Debt issuance
costs
|
|
|
(14,067)
|
|
|
-
|
Repurchase of
stock
|
|
|
(20,000)
|
|
|
-
|
Dividends
|
|
|
(26,882)
|
|
|
(26,344)
|
Investment by joint venture partner
|
|
|
7,000
|
|
|
-
|
Cash distribution to joint venture partner
|
|
|
(24,055)
|
|
|
(36,152)
|
Tax payments for net share settlement of restricted
stock
|
|
|
(2,802)
|
|
|
(2,266)
|
Net cash provided by (used in) financing activities
|
|
|
(41,953)
|
|
|
301,168
|
Effect of exchange
rate changes
|
|
|
9,885
|
|
|
(17,693)
|
Increase (decrease)
in cash, cash equivalents and restricted cash
|
|
|
(205,198)
|
|
|
405,475
|
Cash and cash
equivalents and restricted cash
|
|
|
|
|
|
|
Beginning of period
|
|
|
842,087
|
|
|
338,487
|
End of period
|
|
$
|
636,889
|
|
$
|
743,962
|
Balance Sheet
Reconciliation
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
628,200
|
|
$
|
735,258
|
Restricted cash
|
|
|
8,689
|
|
|
8,704
|
Total cash and cash equivalents and restricted cash as presented
above
|
|
$
|
636,889
|
|
$
|
743,962
|
THE GREENBRIER
COMPANIES, INC.
|
Supplemental
Backlog and Delivery Information
|
|
|
Three Months
Ended
|
May 31,
2021
|
Backlog Activity
(units) (1)
|
|
|
|
Beginning
backlog
|
24,900
|
Orders
received
|
3,800
|
Production held as
Leased railcars for syndication
|
(800)
|
Production sold
directly to third parties
|
(3,100)
|
Ending
backlog
|
24,800
|
|
|
Delivery
Information (units) (1)
|
|
Production sold
directly to third parties
|
3,100
|
Sales of Leased
railcars for syndication
|
200
|
Total
deliveries
|
3,300
|
|
|
(1)
|
Includes
Greenbrier-Maxion, our Brazilian railcar manufacturer, which is
accounted for under the equity method
|
Supplemental Leasing Information
(In thousands, except owned and managed fleet,
unaudited)
GBX Leasing (GBXL) was formed in April
2021 as a joint venture with The Longwood Group to own and
manage a portfolio of leased railcars primarily built by
Greenbrier. Greenbrier owns approximately 90% of GBXL and
consolidates it in Greenbrier's financial statements in the Leasing
& Services segment. Longwood was formed in 2018 by D.
Stephen Menzies to pursue a range of
commercial investments in equipment transportation markets
following his successful growth of Trinity
Rail's leasing business over many years. GBXL adds an
additional "go to market" element to Greenbrier's Commercial
strategy of direct sales, partnerships with operating leasing
companies, origination of leases for syndication partners as well
as providing a platform for further growth at scale. GBXL
will produce strong tax-advantaged cash flows. The goal is to
add at least $200 million in railcar
assets annually at about 3:1 debt to equity (or 75%) based on the
fair market value of assets. During the quarter, an initial
$300 million non-recourse warehouse
credit facility was secured, and $129
million in fair market value of assets were acquired from
Greenbrier's transaction flow. Over time the entity is
expected to grow by at least $200
million in assets annually with a five year target of
$1 billion of assets. The
intent is to use the asset-backed securities market to refinance
the warehouse facility and to convert to permanent financing before
2025 as scale and portfolio balance are achieved.
Considerable tax benefits are generated from these
investments, which are included in the consolidated financial
results this year.
Key information for the consolidated Leasing & Services
segment
(In
Units)
|
May 31,
2021
|
|
February
28,
2021
|
Owned
fleet
|
8,700
|
|
8,700
|
Managed
fleet
|
445,000
|
|
445,000
|
Owned fleet
utilization
|
94%
|
|
95%
|
|
May 31,
2021
|
|
February
28,
2021
|
Equipment on
operating lease
|
$
446,888
|
|
$
445,451
|
|
|
|
|
GBX Leasing
non-recourse warehouse
|
$
96,576
|
|
$
-
|
Leasing non-recourse
debt
|
202,815
|
|
204,722
|
Total Leasing
non-recourse debt
|
$
299,391
|
|
$
204,722
|
|
|
|
|
Fleet leverage
%(1)
|
67%
|
|
46%
|
|
|
(1)
|
Total Leasing
non-recourse debt / Equipment on operating lease
|
THE GREENBRIER
COMPANIES, INC.
|
Supplemental
Information
(In
thousands, except per share amounts, unaudited)
|
|
Operating Results
by Quarter for 2021 are as follows:
|
|
|
First
|
|
Second
|
|
Third
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
Manufacturing
|
$
308,722
|
|
$
202,094
|
|
$
341,939
|
|
$
852,755
|
|
Wheels,
Repair & Parts
|
65,556
|
|
71,623
|
|
80,871
|
|
218,050
|
|
Leasing
& Services
|
28,711
|
|
21,905
|
|
27,333
|
|
77,949
|
|
|
402,989
|
|
295,622
|
|
450,143
|
|
1,148,754
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
Manufacturing
|
280,890
|
|
201,771
|
|
292,464
|
|
775,125
|
|
Wheels,
Repair & Parts
|
62,984
|
|
66,667
|
|
73,690
|
|
203,341
|
|
Leasing
& Services
|
18,444
|
|
9,513
|
|
8,857
|
|
36,814
|
|
|
362,318
|
|
277,951
|
|
375,011
|
|
1,015,280
|
|
|
|
|
|
|
|
|
|
|
Margin
|
40,671
|
|
17,671
|
|
75,132
|
|
133,474
|
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expense
|
43,707
|
|
43,425
|
|
49,239
|
|
136,371
|
|
Net (gain) loss on
disposition of equipment
|
(922)
|
|
(27)
|
|
184
|
|
(765)
|
|
Earnings (loss)
from operations
|
(2,114)
|
|
(25,727)
|
|
25,709
|
|
(2,132)
|
|
|
|
|
|
|
|
|
|
|
Other
costs
|
|
|
|
|
|
|
|
|
Interest and foreign
exchange
|
11,103
|
|
9,568
|
|
10,204
|
|
30,875
|
|
Net loss on
extinguishment of debt
|
-
|
|
-
|
|
4,763
|
|
4,763
|
|
Earnings (loss)
before income tax and earnings (loss) from unconsolidated
affiliates
|
(13,217)
|
|
(35,295)
|
|
10,742
|
|
(37,770)
|
|
Income tax
benefit
|
7,332
|
|
21,752
|
|
6,914
|
|
35,998
|
|
Earnings (loss)
before earnings (loss) from unconsolidated affiliates
|
(5,885)
|
|
(13,543)
|
|
17,656
|
|
(1,772)
|
|
Earnings (loss) from
unconsolidated affiliates
|
(744)
|
|
(378)
|
|
2,379
|
|
1,257
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
(6,629)
|
|
(13,921)
|
|
20,035
|
|
(515)
|
|
Net (earnings)
loss attributable to noncontrolling interest
|
(3,343)
|
|
4,856
|
|
(298)
|
|
1,215
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) attributable to Greenbrier
|
$
(9,972)
|
|
$
(9,065)
|
|
$
19,737
|
|
$
700
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per common share (1)
|
$
(0.30)
|
|
$
(0.28)
|
|
$
0.61
|
|
$
0.02
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per common share (1)
|
$
(0.30)
|
|
$
(0.28)
|
|
$
0.59
|
|
$
0.02
|
|
|
|
|
|
|
|
|
|
|
Dividends per common
share
|
$
0.27
|
|
$
0.27
|
|
$
0.27
|
|
$
0.81
|
|
|
|
(1)
|
Quarterly amounts may
not total to the year to date amount as each period is calculated
discretely.
|
THE GREENBRIER
COMPANIES, INC.
|
Supplemental
Information
(In
thousands, except per share amounts, unaudited)
|
|
Operating Results
by Quarter for 2020 are as follows:
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
$
657,367
|
|
$
489,943
|
|
$
653,007
|
|
$
549,654
|
|
$
2,349,971
|
|
Wheels,
Repair & Parts
|
86,608
|
|
91,225
|
|
82,024
|
|
64,813
|
|
324,670
|
|
Leasing
& Services
|
25,384
|
|
42,680
|
|
27,526
|
|
21,958
|
|
117,548
|
|
|
769,359
|
|
623,848
|
|
762,557
|
|
636,425
|
|
2,792,189
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
581,912
|
|
422,309
|
|
562,793
|
|
498,155
|
|
2,065,169
|
|
Wheels,
Repair & Parts
|
81,892
|
|
84,373
|
|
75,001
|
|
60,923
|
|
302,189
|
|
Leasing
& Services
|
13,366
|
|
30,830
|
|
17,232
|
|
10,272
|
|
71,700
|
|
|
677,170
|
|
537,512
|
|
655,026
|
|
569,350
|
|
2,439,058
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin
|
92,189
|
|
86,336
|
|
107,531
|
|
67,075
|
|
353,131
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expense
|
54,364
|
|
54,597
|
|
49,494
|
|
46,251
|
|
204,706
|
|
Net gain on
disposition of equipment
|
(3,959)
|
|
(6,697)
|
|
(8,775)
|
|
(573)
|
|
(20,004)
|
|
Earnings from
operations
|
41,784
|
|
38,436
|
|
66,812
|
|
21,397
|
|
168,429
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
costs
|
|
|
|
|
|
|
|
|
|
|
Interest and foreign
exchange
|
12,852
|
|
12,609
|
|
7,562
|
|
10,596
|
|
43,619
|
|
Earnings before
income tax and earnings (loss) from unconsolidated
affiliates
|
28,932
|
|
25,827
|
|
59,250
|
|
10,801
|
|
124,810
|
|
Income tax
expense
|
(5,994)
|
|
(7,463)
|
|
(24,421)
|
|
(2,306)
|
|
(40,184)
|
|
Earnings before
earnings (loss) from unconsolidated affiliates
|
22,938
|
|
18,364
|
|
34,829
|
|
8,495
|
|
84,626
|
|
Earnings (loss) from
unconsolidated affiliates
|
1,073
|
|
1,651
|
|
1,040
|
|
(804)
|
|
2,960
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
24,011
|
|
20,015
|
|
35,869
|
|
7,691
|
|
87,586
|
|
Net earnings
attributable to noncontrolling interest
|
(16,342)
|
|
(6,386)
|
|
(8,097)
|
|
(7,794)
|
|
(38,619)
|
|
Net earnings
(loss) attributable to Greenbrier
|
$
7,669
|
|
$
13,629
|
|
$
27,772
|
|
$
(103)
|
|
$
48,967
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per common share (1)
|
$
0.24
|
|
$
0.42
|
|
$
0.85
|
|
$
(0.00)
|
|
$
1.50
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per common share (1)
|
$
0.23
|
|
$
0.41
|
|
$
0.83
|
|
$
(0.00)
|
|
$
1.46
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per common
share
|
$
0.25
|
|
$
0.27
|
|
$
0.27
|
|
$
0.27
|
|
$
1.06
|
|
|
|
(1)
|
Quarterly amounts may
not total to the year to date amount as each period is calculated
discretely.
|
|
THE GREENBRIER
COMPANIES, INC.
|
Supplemental
Information
(In
thousands, unaudited)
|
|
Segment
Information
|
|
Three months ended
May 31, 2021:
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Earnings (loss) from
operations
|
|
|
External
|
|
Intersegment
|
|
Total
|
|
External
|
|
Intersegment
|
|
Total
|
|
Manufacturing
|
$
341,939
|
|
$
7,451
|
|
$
349,390
|
|
$
31,341
|
|
$
492
|
|
$
31,833
|
|
Wheels, Repair &
Parts
|
80,871
|
|
2,292
|
|
83,163
|
|
4,173
|
|
75
|
|
4,248
|
|
Leasing &
Services
|
27,333
|
|
2,286
|
|
29,619
|
|
12,280
|
|
2,272
|
|
14,552
|
|
Eliminations
|
-
|
|
(12,029)
|
|
(12,029)
|
|
-
|
|
(2,839)
|
|
(2,839)
|
|
Corporate
|
-
|
|
-
|
|
-
|
|
(22,085)
|
|
-
|
|
(22,085)
|
|
|
$
450,143
|
|
$
-
|
|
$
450,143
|
|
$
25,709
|
|
$
-
|
|
$
25,709
|
|
|
Three months ended
February 28, 2021:
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Earnings (loss) from
operations
|
|
|
External
|
|
Intersegment
|
|
Total
|
|
External
|
|
Intersegment
|
|
Total
|
|
Manufacturing
|
$
202,094
|
|
$
2,425
|
|
$
204,519
|
|
$
(17,216)
|
|
$
100
|
|
$
(17,116)
|
|
Wheels, Repair &
Parts
|
71,623
|
|
1,603
|
|
73,226
|
|
2,433
|
|
(14)
|
|
2,419
|
|
Leasing &
Services
|
21,905
|
|
1,113
|
|
23,018
|
|
6,420
|
|
634
|
|
7,054
|
|
Eliminations
|
-
|
|
(5,141)
|
|
(5,141)
|
|
-
|
|
(720)
|
|
(720)
|
|
Corporate
|
-
|
|
-
|
|
-
|
|
(17,364)
|
|
-
|
|
(17,364)
|
|
|
$
295,622
|
|
$
-
|
|
$
295,622
|
|
$
(25,727)
|
|
$
-
|
|
$
(25,727)
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
May 31,
2021
|
|
February
28,
2021
|
|
|
Manufacturing
|
$
1,413,590
|
|
$
1,313,819
|
|
|
Wheels, Repair &
Parts
|
265,847
|
|
277,788
|
|
|
Leasing &
Services
|
878,743
|
|
851,546
|
|
|
Unallocated,
including cash
|
651,987
|
|
616,212
|
|
|
|
$
3,210,167
|
|
$
3,059,365
|
|
|
THE GREENBRIER
COMPANIES, INC.
|
Supplemental
Information
(In thousands,
excluding backlog and delivery units, unaudited)
|
|
Reconciliation of
Net earnings (loss) to Adjusted EBITDA
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
May 31,
2021
|
|
February
28,
2021
|
|
|
Net earnings
(loss)
|
$
20,035
|
|
$
(13,921)
|
|
|
Interest and foreign
exchange
|
10,204
|
|
9,568
|
|
|
Income tax
benefit
|
(6,914)
|
|
(21,752)
|
|
|
Depreciation and
amortization
|
24,769
|
|
24,822
|
|
|
Net loss on
extinguishment of debt
|
4,763
|
|
-
|
|
|
Adjusted
EBITDA
|
$
52,857
|
|
$
(1,283)
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net earnings (loss) attributable to Greenbrier to Adjusted net
earnings (loss) attributable to Greenbrier
|
|
|
|
|
Three Months
Ended
|
|
|
|
May 31,
2021
|
|
February 28,
2021
|
Net earnings (loss)
attributable to Greenbrier
|
$
19,737
|
|
$
(9,065)
|
Net loss on
extinguishment of debt, net of tax (1)
|
3,596
|
|
-
|
Adjusted net earnings
(loss) attributable to
Greenbrier
|
$
23,333
|
|
$
(9,065)
|
Reconciliation of
Diluted earnings (loss) per share to Adjusted diluted earnings
(loss) per share
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
May 31,
2021
|
|
February 28,
2021
|
Diluted earnings
(loss) per share
|
|
$
0.59
|
|
$
(0.28)
|
Net loss on
extinguishment of debt, net of tax
|
|
0.10
|
|
-
|
Adjusted diluted
earnings (loss) per share
|
|
$
0.69
|
|
$
(0.28)
|
Weighted average
shares outstanding
|
|
33,605
|
|
32,810
|
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995: This press release may contain
forward-looking statements, including any statements that are not
purely statements of historical fact. Greenbrier uses words, and
variations of words, such as "adjust," "allow," "anticipate,"
"continue," "estimate" "expect," "goal," "intend," "maintain,"
"outlook," "position," "prepare," "reduce," "will," and similar
expressions to identify forward-looking statements. These
forward-looking statements include, without limitation, statements
about backlog, leasing performance, financing, and future liquidity
and cash flow as well as other information regarding future
performance and strategies and appear throughout this press release
including in the headlines and the sections titled "Third Quarter
Highlights," "Business Update & Outlook" and "Supplemental
Leasing Information." These forward-looking statements are not
guarantees of future performance and are subject to certain risks
and uncertainties that could cause actual results to differ
materially from the results contemplated by the forward-looking
statements. Factors that might cause such a difference include, but
are not limited to, the following. (1) We are unable to predict
when, how, or with what magnitude COVID-19, variants thereof, and
governmental reaction thereto, and related economic disruptions
will negatively impact our business: we may be prevented from
operating our facilities; the operations of our customers may be
disrupted increasing the likelihood that our customers may attempt
to delay, defer or cancel orders, or cease to operate as
going concerns; the operations of our suppliers may be disrupted;
our indebtedness may increase; we may breach the covenants in our
credit agreement; the market price of our common stock may drop or
remain volatile; we may incur significant employee health care
costs under our self-insurance programs. We may not be able to
effectively participate in the economic recovery following the
pandemic, if any. The longer the pandemic continues, the more
likely that negative impacts on our business will occur, some of
which we cannot now foresee. (2) Our backlog of railcar units and
marine vessels is not necessarily indicative of future results of
operations. Certain orders in backlog are subject to customary
documentation which may not occur. Customers may attempt to cancel
or modify orders or refuse to accept and pay for products. The
likelihood of cancellations, modifications, rejection and
non-payment for our products generally increases during periods of
market weakness. The timing of converting backlog to revenue is
also materially impacted by our decision whether to lease railcars,
sell railcars, or syndicate railcars with a lease attached to an
investor. (3) Our joint ventures, including our leasing joint
venture, may not perform as anticipated or expected. More
information on potential factors that could cause our results to
differ from our forward-looking statements is included in the
Company's filings with the SEC, including in the "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" sections of the Company's most recently
filed periodic report on Form 10-K and subsequent reports on 10-Q.
Except as otherwise required by law, the Company assumes no
obligation to update any forward-looking statements or information,
which speak as of their respective dates. Readers are cautioned not
to place undue reliance on these forward-looking statements, which
reflect management's opinions only as of the date hereof.
Adjusted Financial Metric Definitions
Adjusted EBITDA, Adjusted net earnings (loss) attributable to
Greenbrier and Adjusted diluted EPS are not financial measures
under generally accepted accounting principles (GAAP). These
metrics are performance measurement tools used by rail supply
companies and Greenbrier. You should not consider these metrics in
isolation or as a substitute for other financial statement data
determined in accordance with GAAP. In addition, because these
metrics are not a measure of financial performance under GAAP and
are susceptible to varying calculations, the measures presented may
differ from and may not be comparable to similarly titled measures
used by other companies.
We define Adjusted EBITDA as Net earnings (loss) before Interest
and foreign exchange, Income tax benefit (expense), Depreciation
and amortization and excluding the impact associated with items we
do not believe are indicative of our core business or which affect
comparability. We believe the presentation of Adjusted EBITDA
provides useful information as it excludes the impact of financing,
foreign exchange, income taxes and the accounting effects of
capital spending. These items may vary for different companies for
reasons unrelated to the overall operating performance of a
company's core business. We believe this assists in comparing our
performance across reporting periods.
Adjusted net earnings (loss) attributable to Greenbrier and
Adjusted diluted EPS excludes the impact associated with items we
do not believe are indicative of our core business or which affect
comparability. We believe this assists in comparing our performance
across reporting periods.
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SOURCE Greenbrier Companies, Inc.