SYS-CON MEDIA Authors: Pat Romanski, Nikita Ivanov, Yeshim Deniz, Elizabeth White, Sean Houghton

News Feed Item

Greenbrier Reports Second Quarter 2014 Results; Backlog Grows to 15,200 units

~ Posts Q2 EPS of $0.51, before restructuring charges

LAKE OSWEGO, Ore., April 3, 2014 /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE: GBX) today reported financial results for its second fiscal quarter ended February 28, 2014.

Second Quarter Highlights

  • Net earnings for the quarter were $16.0 million, or $0.51 per diluted share, excluding restructuring charges (net of tax) of $0.4 million, on revenue of $502.2 million
  • Net earnings attributable to Greenbrier for the quarter, which includes restructuring charges, were $15.6 million, or $0.50 per diluted share.
  • Adjusted EBITDA for the quarter was $44.9 million, or 8.9% of revenue.
  • New railcar backlog as of February 28, 2014 was 15,200 units with an estimated value of $1.54 billion (average unit sale price of $101,000) compared to 13,500 units with an estimated value of $1.43 billion (average unit sale price of $106,000) on November 30, 2013.
  • New railcar deliveries totaled 3,400 units for the quarter, compared to 3,700 units for the quarter ended November 30, 2013.
  • Orders totaled 5,800 new railcars valued at $490 million during the quarter. After quarter end, Greenbrier received orders for another 3,100 units valued at approximately $265 million.
  • Marine backlog as of February 28, 2014 totaled $70 million and reflects orders for four vessels during the quarter.
  • Repurchased 260,717 shares of common stock at a cost of $9.4 million during the quarter. To date, repurchased 542,000 shares of common stock at a cost of $22 million under a $50 million share repurchase program.

Progress on Strategic Initiatives

  • Successfully met $100 million capital efficiency goal. Net debt reduced by over $75 million during the second quarter and about $170 million over the last year; management continues to focus on capital liberation, efficiency and ROIC.
  • Fourth quarter 2014 goal of a minimum 13.5% gross margin remains unchanged.
  • Company will enhance its manufacturing footprint; nearly double tank car manufacturing capacity and increase tank car repair and retrofit capacity to support expected growing demand.
  • To date, closed or sold seven underperforming or non-core facilities in the Wheels, Repair & Parts segment; restructuring and realignment continues in this business segment.

William A. Furman, chairman of the board and chief executive officer, said, "Broad based orders drove backlog at the end of the second quarter to 15,200 units, our second highest level in four years.  This momentum continued subsequent to quarter end, with additional orders for 3,100 units.  The energy sector continues to drive demand for small-cubed covered hoppers and tank cars, while intermodal, grain and automotive demand were also strong. In addition, our Marine business received orders for four barges during the second quarter with demand beginning to accelerate."

"Earnings were level with our first quarter, notwithstanding a decline in aggregate gross margin, which resulted from manufacturing line changeovers, low marine and new railcar production rates at our Gunderson facility in Portland, Oregon, and the impact of the severe winter. With the manufacturing line changeovers now complete, and with Gunderson now operating at higher marine and railcar production rates, we expect manufacturing margins to grow in the second half of the year.  Performance at our Wheels, Repair & Parts segment improved from last quarter; however, certain of our larger significant repair facilities continue to fall short of our expectations.  We are keenly focused on improving the performance of these facilities. We believe that the initiatives undertaken in the first half of the year, along with improved weather, will result in sequential improvement for this segment in the second half of the year.  Our Leasing & Services business remains strong. We continue to reduce the amount of long-term capital invested in this business and drive more volume through our lease syndication and asset management model. Working with multiple investors, we are realizing meaningful value from this segment.  We are committed to achieving at least a 13.5% aggregate gross margin by our fourth quarter," Furman added.

Liquidity & Business Outlook

Furman concluded, "We ended February with over $470 million of liquidity from cash balances and available borrowings on revolving credit facilities.  In March, we refinanced $125 million in senior term debt with new six-year $200 million senior term debt (both secured by railcars on lease), increasing our liquidity to over $500 million.  With a strong backlog and positive outlook, we are investing in capital projects with high returns and quick paybacks.  These projects include replacing existing higher cost leased manufacturing capacity in Mexico with a more efficient alternative site and expanding capacity at existing facilities in Mexico.  The result will be a more flexible, lower-cost manufacturing footprint better suited to our production needs, particularly for tank cars, where Greenbrier plans to nearly double capacity over the next 18 months.  This capacity will support anticipated heightened demand for our "Tank Car of the Future" and replacement demand for older DOT-111 cars.  We will continue to expand our tank car and retrofit capacity and capabilities, and will certify our largest repair facility in Cleburne, Texas, to perform tank car work.  This facility, which can handle tank car unit trains, is ideally situated on the transportation corridor between shale oil and gas-producing areas and refining and distribution operations near the Gulf of Mexico."

Based on current business trends and industry forecasts, in fiscal 2014 Greenbrier continues to believe:

  • Deliveries will exceed 15,000 units
  • Revenue will exceed $2 billion
  • EPS, excluding restructuring charges, will be in the range of $2.45 to $2.70

As disclosed previously, financial results in the second half of the year are expected to be stronger than the first half. Also, while gross margin is expected to increase overall, management does not believe its track will be linear.

Financial Summary


Q2 FY14

Q1 FY14

Sequential Comparison – Main Drivers

Revenue

$502.2M

$490.4M

Up 2.4% due to higher volume of work in Wheels, Repair & Parts, partially offset by reduced deliveries

Gross margin

11.5%

12.6%

Down 110 bps due to Manufacturing line changeovers in Mexico, low production rates at Gunderson facility and impact of severe weather

SG&A

$28.1M

$26.1M

Up 7.7% primarily due to employee-related costs

Gain on disposition

of equipment

$5.4M

$3.7M

Timing of sales fluctuates and is opportunistic; typically ranges from $1.0M to $5.0M per quarter

Restructuring charges

$0.5M

$0.9M

Related to Wheels, Repair & Parts segment

Adjusted EBITDA (1)

$44.9M

$50.0M

Down due to lower deliveries and gross margin, offset somewhat by timing of disposition of leased equipment

Effective tax rate

32.4%

31.4%

Reflects geographic mix of earnings

Net earnings (1)

$16.0M

$16.0M


Diluted EPS (1)

$0.51

$0.51


(1) Excluding restructuring charges.

Segment Summary


Q2 FY14

Q1 FY14

Sequential Comparison – Main Drivers

Manufacturing

  Revenue

$347.8M

$359.5M

Down 3.3% due to lower deliveries

  Gross margin

11.8%

13.4%

Down 160 bps due to inefficiencies associated with line changeovers in Mexico, low production rates at Gunderson facility and impact of severe weather

  Operating margin (2)

8.7%

10.7%


  Deliveries

3,400

3,700

Down due to timing of railcar syndications and line changeovers

Wheels, Repair & Parts

  Revenue

$136.5M

$113.4M

Up 20.4% due to increased wheel volume and repair throughput at certain locations

  Gross margin

6.3%

4.8%

Up 150 bps due to improved wheel volume and product mix offset somewhat by the impact of severe weather

  Operating margin (2) (3)

2.6%

(0.3)%


Leasing & Services

  Revenue

$17.9M

$17.5M

Up 2.3% due to more interim rent and new maintenance management contracts

  Gross margin

45.0%

46.3%

Down 130 bps due to certain transportation costs

  Operating margin (2) (4)

53.8%

49.6%


  Lease fleet utilization

97.6%

97.0%


(2) See supplemental segment information on page 12 for additional information.
(3) Includes restructuring charges of $0.5 million in Q2 2014 and $0.9 million in Q1 2014.
(4) Operating margin includes Gains on disposition of equipment, which is excluded from gross margin.

Conference Call

Greenbrier will host a teleconference to discuss its second quarter 2014 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website.  Teleconference details are as follows:

  • April 3, 2014
  • 8:00 a.m. Pacific Daylight Time
  • Phone: 1-630-395-0143, Password: "Greenbrier" 
  • Real-time Audio Access:  ("Newsroom" at http://www.gbrx.com)

Please access the site 10 minutes prior to the start time.  Following the call, a webcast replay will be available for 30 days.  Telephone replay will be available through April 19, 2014, at 402-280-9953.

About Greenbrier Companies

Greenbrier (www.gbrx.com), headquartered in Lake Oswego, Oregon, is a leading supplier of transportation equipment and services to the railroad industry.  Greenbrier builds new railroad freight cars in its four manufacturing facilities in the U.S. and Mexico and marine barges at its U.S. facility.  It also repairs and refurbishes freight cars and provides wheels and railcar parts at 36 locations across North America.  Greenbrier builds new railroad freight cars and refurbishes freight cars for the European market through both its operations in Poland and various subcontractor facilities throughout Europe.  Greenbrier owns approximately 8,400 railcars, and performs management services for approximately 233,000 railcars.

"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:  This press release may contain forward-looking statements, including statements regarding expected new railcar production volumes and schedules, expected customer demand for the Company's products and services, plans to increase manufacturing capacity, restructuring plans, new railcar delivery volumes and schedules, growth in demand for the Company's railcar services and parts business, and the Company's future financial performance. Greenbrier uses words such as "anticipates," "believes," "forecast," "potential," "goal," "contemplates," "expects," "intends," "plans," "projects," "hopes," "seeks," "estimates," "strategy," "could," "would," "should," "likely," "will," "may," "can," "designed to," "future," "foreseeable future" and similar expressions to identify forward-looking statements.  These forward-looking statements are not guarantees of future performance and are subject to certain risks and uncertainties that could cause actual results to differ materially from in the results contemplated by the forward-looking statements.  Factors that might cause such a difference include, but are not limited to, reported backlog is not indicative of our financial results; turmoil in the credit markets and financial services industry; high levels of indebtedness and compliance with the terms of our indebtedness; write-downs of goodwill, intangibles and other assets in future periods; sufficient availability of borrowing capacity; fluctuations in demand for newly manufactured railcars or failure to obtain orders as anticipated in developing forecasts; loss of one or more significant customers; customer payment defaults or related issues; actual future costs and the availability of materials and a trained workforce; failure to design or manufacture new products or technologies or to achieve certification or market acceptance of new products or technologies; steel or specialty component price fluctuations and availability and scrap surcharges; changes in product mix and the mix between segments; labor disputes, energy shortages or operating difficulties that might disrupt manufacturing operations or the flow of cargo; production difficulties and product delivery delays as a result of, among other matters, inefficiencies associated with expansion or start-up of production lines or increased production rates, changing technologies, transfer of production between facilities or non-performance of alliance partners, subcontractors or suppliers; ability to obtain suitable contracts for the sale of leased equipment and risks related to car hire and residual values; integration of current or future acquisitions; succession planning; discovery of defects in railcars or services resulting in increased warranty costs or litigation; physical damage or product or service liability claims that exceed our insurance coverage; train derailments or other accidents or claims that could subject us to legal claims; actions by various regulatory agencies including potential environmental remediation obligations or changing tank car or other rail car regulation; and interruption of our manufacturing operations as a result of lease termination or expiration; all as may be discussed in more detail under the headings "Risk Factors" and "Forward Looking Statements" in our Annual Report on Form 10-K for the fiscal year ended August 31, 2013, and our other reports on file with the Securities and Exchange Commission.  Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date hereof.  Except as otherwise required by law, we do not assume any obligation to update any forward-looking statements.

Net earnings excluding restructuring charges, Adjusted EBITDA, and Diluted earnings per share excluding restructuring charges are not financial measures under generally accepted accounting principles (GAAP). We define Net earnings excluding restructuring charges as Net earnings before restructuring charges (after-tax). We define Adjusted EBITDA as Net earnings attributable to Greenbrier before interest and foreign exchange, income tax expense, restructuring charges and depreciation and amortization. We define Diluted earnings per share excluding restructuring charges as Net earnings excluding restructuring charges before interest and debt issuance costs (net of tax) on convertible notes divided by Weighted average diluted common shares outstanding.  Net earnings excluding restructuring charges, Adjusted EBITDA, and Diluted earnings per share excluding restructuring charges are performance measurement tools used by Greenbrier. You should not consider Net earnings excluding restructuring charges, Adjusted EBITDA, and Diluted earnings per share excluding restructuring charges in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because Adjusted EBITDA and Diluted earnings per share excluding restructuring charges are not measures of financial performance under GAAP and are susceptible to varying calculations, the Adjusted EBITDA and Diluted earnings per share excluding restructuring charges measures presented may differ from and may not be comparable to similarly titled measures used by other companies.

 



THE GREENBRIER COMPANIES, INC.

Consolidated Balance Sheets

(In thousands, unaudited)



February 28,

2014

November 30,

2013

August 31, 

2013

May 31,

2013

February 28,

2013

Assets






   Cash and cash equivalents

$        143,929

$          81,226

$       97,435

$       31,606

$       55,637

   Restricted cash

8,964

8,975

8,807

8,906

8,899

   Accounts receivable, net 

148,810

174,745

154,848

162,352

144,933

   Inventories

306,394

328,235

316,783

344,168

359,281

   Leased railcars for syndication

84,657

61,282

68,480

71,091

36,198

   Equipment on operating leases, net

282,328

293,291

305,468

332,924

344,576

   Property, plant and equipment, net

204,804

201,353

201,533

197,779

194,887

   Goodwill

57,416

57,416

57,416

57,416

134,316

   Intangibles and other assets, net

77,173

76,055

78,971

79,364

86,194


$    1,314,475

$      1,282,578

$  1,289,741

$  1,285,606

$  1,364,921







Liabilities and Equity






   Revolving notes

$         26,738

$           38,805

$       48,209

$       92,968

$       50,058

   Accounts payable and accrued liabilities

319,611

293,041

315,938

286,964

278,221

   Deferred income taxes

84,848

86,501

86,040

86,229

99,965

   Deferred revenue

14,272

8,706

8,838

16,203

23,178

   Notes payable

371,427

372,666

373,889

372,942

427,553







   Total equity - Greenbrier

456,569

447,599

428,202

404,707

461,136

   Noncontrolling interest

41,010

35,260

28,625

25,593

24,810

   Total equity

497,579

482,859

456,827

430,300

485,946


$    1,314,475

$      1,282,578

$  1,289,741

$  1,285,606

$  1,364,921

 

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Operations

(In thousands, except per share amounts, unaudited)



Three Months Ended

February 28,

Six Months Ended

February 28,


2014


2013


2014


2013

Revenue








        Manufacturing

$     347,755


$     294,047


$    707,228


$     579,416

        Wheels, Repair & Parts

136,540


111,952


249,941


224,051

        Leasing & Services

17,921


17,167


35,402


35,073


502,216


423,166


992,571


838,540

Cost of revenue








        Manufacturing

306,572


262,650


618,012


521,142

        Wheels, Repair & Parts

127,940


103,134


235,915


204,610

        Leasing & Services

9,853


9,107


19,234


16,735


444,365


374,891


873,161


742,487









Margin

57,851


48,275


119,410


96,053









Selling and administrative expense

28,125


24,942


54,234


51,042

Net gain on disposition of equipment

(5,416)


(3,076)


(9,067)


(4,484)

Restructuring charges

540


-


1,419


-

Earnings from operations

34,602


26,409


72,824


49,495









Other costs








        Interest and foreign exchange

4,099


6,322


8,843


12,222

Earnings before income tax and loss from unconsolidated affiliates

30,503


20,087


63,981


37,273

Income tax expense

(9,883)


(5,590)


(20,405)


(10,176)

Earnings before loss from unconsolidated affiliates

20,620


14,497


43,576


27,097

Loss from unconsolidated affiliates

(67)


(105)


(26)


(145)

Net earnings

20,553


14,392


43,550


26,952

Net earnings attributable to noncontrolling interest

(4,966)


(553)


(12,575)


(2,686)









Net earnings attributable to Greenbrier

$     15,587


$    13,839


$     30,975


$     24,266









Basic earnings per common share:

$          0.55


$        0.51


$          1.09


$         0.89









Diluted earnings per common share:

$           0.50


$         0.45


$         0.98


$         0.80









Weighted average common shares:








        Basic

28,300


27,210


28,359


27,177

        Diluted

34,345


34,044


34,404


34,018









 

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Cash Flows

(In thousands, unaudited)



Six Months Ended

February 28


2014


2013

Cash flows from operating activities:




    Net earnings

$                 43,550


$                 26,952

    Adjustments to reconcile net earnings to net cash

      provided by operating activities:




      Deferred income taxes

(1,448)


4,203

      Depreciation and amortization

20,753


21,398

      Net gain on disposition of equipment

(9,067)


(4,484)

     Accretion of debt discount

-


1,725

     Stock based compensation expense

2,862


2,887

      Other

2,768


(1,612)

      Decrease (increase) in assets:




          Accounts receivable

6,900


3,079

          Inventories

9,147


(27,208)

          Leased railcars for syndication

(13,603)


56,960

          Other

68


245

      Increase (decrease) in liabilities:




          Accounts payable and accrued liabilities

(487)


(56,493)

          Deferred revenue

5,377


5,936

    Net cash provided by operating activities

66,820


33,588

Cash flows from investing activities:




    Proceeds from sales of assets

28,671


22,301

    Capital expenditures

(16,529)


(35,525)

    Increase in restricted cash

(157)


(2,622)

   Investment in and net advances to unconsolidated affiliates

(1,253)


(386)

   Other

-


(3,582)

    Net cash provided by (used in) investing activities

10,732


(19,814)

Cash flows from financing activities:




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

-


(16,579)

   Proceeds from revolving notes with maturities longer than 90 days

31,738


19,968

   Repayments of revolving notes with maturities longer than 90 days

(53,209)


(14,998)

    Repayments of notes payable

(2,462)


(2,251)

    Repurchase of stock

(8,889)


-

    Investment by joint venture partner 

419


1,949

    Cash distribution to joint venture partner

(1,604)


-

   Excess tax benefit from restricted stock awards

110


181

    Net cash used in financing activities

(33,897)


(11,730)

Effect of exchange rate changes

2,839


22

Increase in cash and cash equivalents

46,494


2,066

Cash and cash equivalents




    Beginning of period

97,435


53,571

    End of period

$           143,929


$                 55,637

 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

(In thousands, except per share amounts, unaudited)

 

Operating Results by Quarter for 2014 are as follows:



First


Second


Total

2014






Revenue






   Manufacturing

$   359,473


$   347,755


$   707,228

   Wheels, Repair & Parts

113,401


136,540


249,941

   Leasing & Services

17,481


17,921


35,402


490,355


502,216


992,571

Cost of revenue






   Manufacturing

311,440


306,572


618,012

   Wheels, Repair & Parts

107,975


127,940


235,915

   Leasing & Services

9,381


9,853


19,234


428,796


444,365


873,161







Margin

61,559


57,851


119,410







Selling and administrative expense

26,109


28,125


54,234

Net gain on disposition of equipment

(3,651)


(5,416)


(9,067)

Restructuring charges

879


540


1,419

Earnings from operations

38,222


34,602


72,824







Other costs






   Interest and foreign exchange

4,744


4,099


8,843

Earnings before income tax and

   earnings (loss) from unconsolidated affiliates

33,478


30,503

 


63,981

 







Income tax expense

(10,522)


(9,883)


(20,405)

Earnings before earnings (loss) from 

   unconsolidated affiliates

22,956


20,620


43,576

Earnings (loss) from unconsolidated affiliates

41


(67)


(26)

Net earnings

22,997


20,553


43,550

Net earnings attributable to

   noncontrolling interest

 

(7,609)


 

(4,966)


 

(12,575)

Net earnings attributable to Greenbrier

$        15,388


$     15,587


$     30,975







Basic earnings per common share

$         0.54


$         0.55


$         1.09

Diluted earnings per common share (1)

$         0.49


$         0.50


$         0.98



(1)

Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the outstanding warrants using the treasury stock method and the dilutive effect of shares underlying the 2018 Convertible Notes using the "if converted" method in which debt issuance and interest costs, net of tax, were added back to net earnings.

 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

(In thousands, except per share amounts, unaudited)

 

Operating Results by Quarter for 2013 are as follows:



First


Second


Third


Fourth


Total











Revenue










   Manufacturing

$    285,368


$    294,047


$   284,591


$   351,728


$ 1,215,734

   Wheels, Repair & Parts

112,100


111,952


131,167


114,003


469,222

   Leasing & Services

17,906


17,167


17,905


18,484


71,462


415,374


423,166


433,663


484,215


1,756,418

Cost of revenue










   Manufacturing

258,492


262,650


253,360


308,387


1,082,889

   Wheels, Repair & Parts

101,476


103,134


120,476


106,415


431,501

   Leasing & Services

7,627


9,107


9,808


9,113


35,655


367,595


374,891


383,644


423,915


1,550,045











Margin

47,779


48,275


50,019


60,300


206,373











Selling and administrative

26,100


24,942


25,322


26,811


103,175

Net gain on disposition of equipment

(1,408)


(3,076)


(5,131)


(8,457)


(18,072)

Goodwill impairment

-


-


76,900


-


76,900

Restructuring charges

-


-


-


2,719


2,719

Earnings (loss) from operations

23,087


26,409


(47,072)


39,227


41,651











Other costs










   Interest and foreign exchange

5,900


6,322


5,905


4,031


22,158

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

 

17,187


 

20,087


 

(52,977)


 

35,196


 

19,493











Income tax expense

(4,586)


(5,590)


(2,729)


(12,155)


(25,060)











Earnings (loss) from unconsolidated affiliates

(40)


(105)


82


249


186

Net earnings (loss)

12,561


14,392


(55,624)


23,290


(5,381)

Net earnings attributable to noncontrolling interest

 

(2,134)


 

(553)


 

(406)


 

(2,574)


 

(5,667)

Net earnings (loss) attributable to Greenbrier

$      10,427


$      13,839


$   (56,030)


$        20,716


$     (11,048)











Basic earnings (loss) per common share: (1)

$           0.38


$           0.51


$       (2.10)


$            0.74


$         (0.41)

Diluted earnings (loss) per common share: (2)

$           0.35


$           0.45


$       (2.10)


$            0.64


$         (0.41)



(1)

Quarterly amounts do not total to the year to date amount as each period is calculated discretely.



(2)

Quarterly amounts do not total to the year to date amount as each period is calculated discretely. For the first, second and fourth quarters, diluted earnings per common share includes the outstanding warrants using the treasury stock method and the dilutive effect of shares underlying the 2018 Convertible Notes using the "if converted" method in which debt issuance and interest costs, net of tax, were added back to net earnings.

 


THE GREENBRIER COMPANIES, INC.

Supplemental Information

(In thousands, unaudited)

 

Segment Information


Three months ended February 28, 2014:










Revenue


Earnings (loss) from operations


External


Intersegment


Total


External


Intersegment


Total

Manufacturing

$        347,755


$                      -


$         347,755


$           30,112


$                      -


$      30,112

Wheels, Repair & Parts

136,540


2,307


138,847


3,574


42


3,616

Leasing & Services

17,921


5,414


23,335


9,636


5,420


15,056

Eliminations

-


(7,721)


(7,721)


-


(5,462)


(5,462)

Corporate

-


-


-


(8,720)


-


(8,720)


$       502,216


$                      -


$         502,216


$           34,602


$                      -


$      34,602










Three months ended November 30, 2013










Revenue


Earnings (loss) from operations


External


Intersegment


Total


External


Intersegment


Total

Manufacturing

$         359,473


$                      -


$         359,473


$           38,314


$                      -


$      38,314

Wheels, Repair & Parts

113,401


1,653


115,054


(374)


31


(343)

Leasing & Services

17,481


2,869


20,350


8,670


2,869


11,539

Eliminations

-


(4,522)


(4,522)


-


(2,900)


(2,900)

Corporate

-


-


-


(8,388)


-


(8,388)


$        490,355


$                      -


$         490,355


$           38,222


$                      -


$      38,222




Total assets


February 28,


November 30


2014


2013

Manufacturing

$        406,620


$           461,096

Wheels, Repair & Parts

317,921


304,249

Leasing & Services

437,043


427,023

Unallocated

152,891


90,210


$     1,314,475


$        1,282,578





 

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, 2014


November 30, 2013



Net earnings

$             20,553


$                22,997



Interest and foreign exchange

4,099


4,744



Income tax expense

9,883


10,522



Depreciation and amortization

9,856


10,897



Restructuring charges

540


879






,





Adjusted EBITDA

$                44,931


$                50,039










(1)

Adjusted EBITDA is not a financial measure under generally accepted accounting principles (GAAP).  We define Adjusted EBITDA as Net earnings before interest and foreign exchange, income tax expense, restructuring charges, depreciation and amortization.  Adjusted EBITDA is a performance measurement tool commonly used by rail supply companies and Greenbrier.  You should not consider Adjusted EBITDA in isolation or as a substitute for other financial statement data determined in accordance with GAAP.  In addition, because Adjusted EBITDA is not a measure of financial performance under GAAP and is susceptible to varying calculations, the Adjusted EBITDA measure presented may differ from and may not be comparable to similarly titled measures used by other companies.

 




Three Months Ended

February 28, 2014


Backlog Activity (units)





Beginning backlog

13,500


Orders received

5,800


Production held as Leased railcars for syndication

(1,400)


Production sold directly to third parties

(2,700)


Ending backlog

15,200





Delivery Information (units)



Production sold directly to third parties

2,700


Sales of Leased railcars for syndication

700


Total deliveries

3,400


 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

(In thousands, except per share amounts, unaudited)

 

Reconciliation of common shares outstanding and diluted earnings per share


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



Three Months Ended



February 28,

2014


November 30,

2013


Weighted average basic common shares outstanding (1)

28,300


28,417


Dilutive effect of warrants

-


-


Dilutive effect of convertible notes (2)

6,045


6,045


Weighted average diluted common shares outstanding

34,345


34,462











(1)

Restricted stock grants and restricted stock units, including some grants subject to certain performance criteria, are included in Weighted average basic common shares outstanding when the Company is in a net earnings position.



(2)

The dilutive effect of the 2018 Convertible notes are included in the Weighted average diluted common shares outstanding as they were considered dilutive under the "if converted" method as further discussed below. The dilutive effect of the 2026 Convertible notes was excluded from the share calculations as the stock price for each period presented was less than the initial conversion price of $48.05 and therefore considered anti-dilutive.

Diluted earnings per share was calculated using the more dilutive of two approaches.  The first approach includes the dilutive effect of outstanding warrants and shares underlying the 2026 Convertible notes in the share count using the treasury stock method. The second approach supplements the first by including the "if converted" effect of the 2018 Convertible notes issued in March 2011. Under the "if converted method" debt issuance and interest costs, both net of tax, associated with the convertible notes are added back to net earnings and the share count is increased by the shares underlying the convertible notes. The 2026 Convertible notes would only be included in the calculation of both approaches if the current stock price is greater than the initial conversion price of $48.05 using the treasury stock method.

Reconciliation of Net earnings attributable to Greenbrier to Net earnings excluding restructuring charges



Three Months Ended



February 28,

2014


November 30,

2013


Net earnings attributable to Greenbrier

$        15,587


$         15,388


Restructuring charges (after-tax)

365


603


Net earnings excluding restructuring charges (1)

15,952


15,991


Add back:





Interest and debt issuance costs on the 2018 Convertible 

     notes, net of tax

 

1,416


 

1,416


Earnings before interest and debt issuance costs on

     convertible notes

 

$           17,368


 

$           17,407







Weighted average diluted common shares outstanding

34,345


34,462







Diluted earnings per share excluding restructuring charges (2)

$              0.51


$              0.51




(1)

Net earnings excluding restructuring charges is not a financial measure under GAAP. We define Net earnings excluding restructuring charges as Net earnings attributable to Greenbrier before restructuring charges (after-tax). Net earnings excluding restructuring charges is a performance measurement tool used by Greenbrier. You should not consider Net earnings excluding restructuring charges in isolation or as a substitute for other financial statement data determined in accordance with GAAP. 



(2)

Diluted earnings per share excluding restructuring charges is not a financial measure under GAAP. We define Diluted earnings per share excluding restructuring charges as Net earnings excluding restructuring charges before interest and debt issuance costs (net of tax) on convertible notes divided by Weighted average diluted common shares outstanding. Diluted earnings per share excluding restructuring charges is a performance measurement tool used by Greenbrier. You should not consider Diluted earnings per share excluding restructuring charges in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because Diluted earnings per share excluding restructuring charges is not a measure of financial performance under GAAP and is susceptible to varying calculations, the Diluted earnings per share excluding restructuring charges measure presented may differ from and may not be comparable to similarly titled measures used by other companies.

 

SOURCE The Greenbrier Companies, Inc. (GBX)

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
"ElasticBox is an enterprise company that makes it very easy for developers and IT ops to collaborate to develop, build and deploy applications on any cloud - private, public or hybrid," stated Monish Sharma, VP of Customer Success at ElasticBox, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the ...
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect...
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will w...
DevOps is all about agility. However, you don't want to be on a high-speed bus to nowhere. The right DevOps approach controls velocity with a tight feedback loop that not only consists of operational data but also incorporates business context. With a business context in the decision making, the right business priorities are incorporated, which results in a higher value creation. In his session at DevOps Summit, Todd Rader, Solutions Architect at AppDynamics, discussed key monitoring techniques...
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to th...
SYS-CON Media announced that Centrify, a provider of unified identity management across cloud, mobile and data center environments that delivers single sign-on (SSO) for users and a simplified identity infrastructure for IT, has launched an ad campaign on Cloud Computing Journal. The ads focus on security: how an organization can successfully control privilege for all of the organization’s identities to mitigate identity-related risk without slowing down the business, and how Centrify provides ...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
The term culture has had a polarizing effect among DevOps supporters. Some propose that culture change is critical for success with DevOps, but are remiss to define culture. Some talk about a DevOps culture but then reference activities that could lead to culture change and there are those that talk about culture change as a set of behaviors that need to be adopted by those in IT. There is no question that businesses successful in adopting a DevOps mindset have seen departmental culture change, ...
In her General Session at 15th Cloud Expo, Anne Plese, Senior Consultant, Cloud Product Marketing, at Verizon Enterprise, focused on finding the right mix of renting vs. buying Oracle capacity to scale to meet business demands, and offer validated Oracle database TCO models for Oracle development and testing environments. Anne Plese is a marketing and technology enthusiast/realist with over 19+ years in high tech. At Verizon Enterprise, she focuses on driving growth for the Verizon Cloud platfo...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.