Market News & Research Alert
News for GBX
Alert sent 2016-04-06 07:54:53 AM ET
Delivery preference: Immediate delivery
Greenbrier Reports Second Quarter Results
2016-04-05 06:00:00 AM ET (PR Newswire)
The Greenbrier Companies, Inc. (NYSE: GBX) today reported financial results for its second fiscal quarter ended February 29, 2016.
Second Quarter Highlights
-- Net earnings attributable to Greenbrier for the quarter were $44.9 million, or $1.41 per diluted share, on revenue of $669.1 million.
-- Adjusted EBITDA for the quarter was $108.2 million, or 16.2% of revenue.
-- Net debt was reduced by over $175 million during the quarter. Net debt to LTM EBITDA down to 0.2x.
--
New railcar backlog as of February 29, 2016 was 34,100 units with an estimated value of $4.0 billion (average unit sale price of $116,000), compared to 36,000 units with an estimated value of $4.1 billion (average unit sale price of $115,000) as of November 30, 2015. -- Diversified orders for 3,000 new railcars were received during the quarter, valued at nearly $310 million, or an average price of approximately $103,000 per railcar. -- New railcar deliveries totaled 4,500 units for the quarter, compared to 6,900 units for the quarter ended November 30, 2015.
-- Marine backlog as of February 29, 2016 was approximately $18 million.
-- Board declared a quarterly dividend of $0.20 per share payable on May 4, 2016 to shareholders of record as of April 13, 2016. This marks the seventh straight quarterly dividend.
-- Repurchased 533,061 shares of common stock at a cost of $13.3 million during the quarter. Board authorization for approximately $88.0 million remains available for further share repurchases.
-- Subsequent to quarter end, formed a 50/50 joint venture with Sumitomo Corporation of Americas to establish a leading axle machining facility on West Coast.
Progress on Longer Term Financial Goals
-- Second quarter aggregate gross margin, excluding the syndication of a railcar portfolio acquired in our first quarter, was 20.0%, consistent with our goal of at least 20% gross margin by the second half of fiscal 2016. The syndication generated high rates of return; however, the margin percentage had a dilutive impact, resulting in aggregate gross margin of 17.9%.
-- Second quarter annualized ROIC of 31.0% continues ROIC performance above 25% for the second consecutive quarter. We expect to maintain or exceed our 25% ROIC target for the second half of fiscal 2016.
William A. Furman, Chairman and CEO said, "Greenbrier delivered solid results again this quarter across all business units. Our leasing and management services business profitably syndicated the majority of the 4,000 railcar portfolio acquired in our first quarter. We continue to manage these assets and earn fee income, deriving the benefits of our strong balance sheet and integrated model. Based on our current outlook, we remain on track to achieve our fiscal 2016 guidance for deliveries, revenue and diluted EPS."
Furman added, "Greenbrier has transformed itself through the ongoing contributions of our employees and partners. Over the past five years, we have refined our business model and as industry demand moderates and customer requirements shift to different railcar types, Greenbrier is well-positioned. In recent years, we have diversified our product mix, and launched new high-value products while developing a low cost, flexible, international manufacturing base. Our aftermarket businesses in railcar repair, wheels and parts provide ongoing stability. In an extension of our aftermarket business, I am pleased to announce that we have formed GBSummit, a 50/50 joint venture with Sumitomo Corporation of Americas. When it opens in early 2017, GBSummit will be the preeminent axle machining location on the US West Coast that supports growing intermodal rail activity and will create value for our customers and partners."
Furman concluded, "Greenbrier is adapting well to the present industry and economic climate. We enjoy a diversified backlog, with non-energy related railcars representing 83% of our total backlog. Our healthy backlog and our integrated business model, unique in the industry, position us for steady performance into 2017 and beyond. Greenbrier has a strong balance sheet and we will continue to strategically invest globally in assets and projects generating high rates of return while returning capital to shareholders."
Business Outlook
Based on current business trends and production schedules for fiscal 2016, Greenbrier narrows previously provided guidance for:
-- New railcar deliveries to be approximately 20,000 - 22,000 units
-- Revenue to exceed $2.8 billion
-- Diluted EPS in the range of $5.70 to $6.10
We expect financial results to be weighted toward the first half of the year primarily due to line changeovers, product mix changes and lower production rates on certain lines in the second half of fiscal 2016.
As noted in the "Safe Harbor" statement, there are risks to achieving this guidance. Certain orders and backlog in this release are subject to customary documentation and completion of terms.
Financial Summary
Q2 FY16 Q1 FY16 Sequential Comparison - Main Drivers
Revenue $669.1M $802.4M Down 16.6% primarily due to decreased deliveries
Gross margin 17.9% 23.0% Down 510 bps due to inefficiencies associated with product line changeovers and marine production, and lower margin percentage on the syndication of acquired railcar portfolio
Selling and $38.2M $36.5M Up 4.7% primarily due to consulting and higher employee related costs
administrative expense
Gain on disposition $10.7M $0.3M Timing of sales fluctuates and is opportunistic
of equipment
Adjusted EBITDA $108.2M $161.8M Down 33.1% driven by lower deliveries and gross margin
Effective tax rate 28.3% 31.3% Reflects a change in the geographic mix of earnings and the effects of discrete items
Net earnings attributable $21.3M $29.3M Driven by timing of deliveries and margin from our GIMSA JV
to noncontrolling interest
Net earnings $44.9M $69.4M
Diluted EPS $1.41 $2.15
Segment Summary
Q2 FY16 Q1 FY16 Sequential Comparison - Main Drivers
Manufacturing
Revenue $454.5M $698.7M Down 35.0% primarily due to lower deliveries
Gross margin 20.4% 23.7% Down 330 bps due to lower syndication volume and inefficiencies associated with line changeovers and marine production
Operating margin (1) 17.3% 22.0%
Deliveries 4,500 6,900
Wheels & Parts
Revenue $90.5M $78.7M Up 15.0% primarily attributable to a seasonal increase in wheel and component volumes and more favorable product mix
Gross margin 10.0% 7.3% Up 270 bps primarily due to higher sales volumes and more favorable product mix
Operating margin (1) 7.2% 4.3%
Leasing & Services
Revenue $124.1M $25.0M Up due to the sale of acquired railcar portfolio
Gross margin 14.6% 53.6% Down due to lower margin on the syndication of acquired railcar portfolio; excluding this activity, gross margin is 51.1%
Operating margin (1) (2) 19.7% 39.8%
Lease fleet utilization 86.0% 89.0% Decline driven by sale of leased railcars; number of off-lease railcars modestly lower than Q1
(1) See supplemental segment information on page 11 for additional information.
(2) Includes Net gain on disposition of equipment, which is excluded from gross margin.
Conference Call
Greenbrier will host a teleconference to discuss its second quarter 2016 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. Teleconference details are as follows:
-- April 5, 2016
-- 8:00 a.m. Pacific Daylight Time
-- Phone: 1-630-395-0143, Password: "Greenbrier"
-- Real-time Audio Access: ("Newsroom" at
https://www.gbrx.com)
Please access the site 10 minutes prior to the start time.
About Greenbrier
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 manufacturing facilities in the U.S., Mexico and Poland and marine barges at our U.S. manufacturing facility. Greenbrier sells reconditioned wheel sets and provides wheel services at locations throughout the U.S. We recondition, manufacture and sell railcar parts at various U.S. sites. Through GBW Railcar Services, LLC, a 50/50 joint venture with Watco Companies, LLC, freight cars are repaired and refurbished at over 30 locations across North America, including more than 10 tank car repair and maintenance facilities certified by the Association of American Railroads. Greenbrier owns a lease fleet of over 9,000 railcars and performs management services for over 250,000 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 adjust manufacturing capacity, restructuring plans, new railcar delivery volumes and schedules, changes in demand for the Company's railcar services and parts business, and the Company's future financial performance. Greenbrier uses words such as "anticipates," "believes," "forecast," "potential," "goal," "contemplates," "expects," "intends," "plans," "projects," "hopes," "seeks," "estimates," "strategy," "could," "would," "should," "likely," "will," "may," "can," "designed to," "future," "foreseeable future" and similar expressions to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to certain risks and uncertainties that could cause actual results to differ materially from in the results contemplated by the forward-looking statements. Factors that might cause such a difference include, but are not limited to, reported backlog and awards are not indicative of our financial results; uncertainty or changes 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; 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 our insurance coverage; train derailments or other accidents or claims that could subject us to legal claims; actions or inactions by various regulatory agencies including potential environmental remediation obligations or changing tank car or other rail car or railroad regulation; and 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 our Annual Report on Form 10-K for the fiscal year ended August 31, 2015, 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.
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, 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, this measure presented may differ from and may not be comparable to similarly titled measures used by other companies.
Annualized ROIC is calculated by taking year to date Earnings from operations, less cash paid for income taxes, net, which is then annualized and divided by the average balance of the sum of the Revolving notes, plus Notes payable, plus Total equity, less cash in excess of $40 million. The average is calculated based on the quarterly ending balances.
THE GREENBRIER COMPANIES, INC.
Consolidated Balance Sheets
(In thousands, unaudited)
February 29, 2016 November 30, 2015 August 31, 2015 May 31, 2015 February 28, 2015
Assets
Cash and cash equivalents $ 283,541 $ 197,633 $ 172,930 $ 122,783 $ 145,512
Restricted cash 8,877 9,818 8,869 8,912 8,722
Accounts receivable, net 228,072 237,213 196,029 214,890 207,488
Inventories 421,243 444,023 445,535 426,655 418,590
Leased railcars for syndication 179,975 238,911 212,534 213,197 198,010
Equipment on operating leases, net 235,171 252,641 255,391 257,962 261,234
Property, plant and equipment, net 310,019 307,196 303,135 285,570 271,977
Investment in unconsolidated affiliates 86,850 86,658 87,270 91,217 71,225
Intangibles and other assets, net 73,296 76,157 65,554 62,664 64,386
Goodwill 43,265 43,265 43,265 43,265 43,265
$ 1,870,309 $ 1,893,515 $ 1,790,512 $ 1,727,115 $ 1,690,409
Liabilities and Equity
Revolving notes $ 75,000 $ 163,888 $ 50,888 $ 92,507 $ 90,563
Accounts payable and accrued liabilities 401,010 384,670 455,213 405,544 417,844
Deferred income taxes 55,204 63,483 60,657 75,572 77,632
Deferred revenue 84,362 42,351 33,836 24,209 28,287
Notes payable 322,539 324,668 326,429 346,279 441,326
Total equity - Greenbrier 800,940 771,945 732,838 672,396 541,491
Noncontrolling interest 131,254 142,510 130,651 110,608 93,266
Total equity 932,194 914,455 863,489 783,004 634,757
$ 1,870,309 $ 1,893,515 $ 1,790,512 $ 1,727,115 $ 1,690,409
THE GREENBRIER COMPANIES, INC.
Consolidated Statements of Income
(In thousands, except per share amounts, unaudited)
Three Months Ended Six Months Ended
February 29, February 28, February 29, 2016 February 28,
2016 2015 2015
Revenue
Manufacturing $ 454,531 $ 505,241 $ 1,153,192 $ 885,190
Wheels & Parts 90,458 102,640 169,187 189,264
Leasing & Services 124,090 22,268 149,089 50,753
669,079 630,149 1,471,468 1,125,207
Cost of revenue
Manufacturing 361,827 403,227 894,860 719,264
Wheels & Parts 81,388 92,768 154,390 169,640
Leasing & Services 105,973 8,844 117,562 22,925
549,188 504,839 1,166,812 911,829
Margin 119,891 125,310 304,656 213,378
Selling and administrative expense 38,244 32,899 74,793 66,628
Net gain on disposition of equipment (10,746) (121) (11,015) (204)
Earnings from operations 92,393 92,532 240,878 146,954
Other costs
Interest and foreign exchange 1,417 1,929 6,853 5,070
Earnings before income tax and earnings (loss) from unconsolidated affiliates 90,976 90,603 234,025 141,884
Income tax expense (25,734) (29,372) (70,453) (45,426)
Earnings before earnings (loss) from unconsolidated affiliates 65,242 61,231 163,572 96,458
Earnings (loss) from unconsolidated affiliates 974 (185) 1,357 570
Net earnings 66,216 61,046 164,929 97,028
Net earnings attributable to noncontrolling interest (21,348) (10,695) (50,628) (13,891)
Net earnings attributable to Greenbrier $ 44,868 $ 50,351 $ 114,301 $ 83,137
Basic earnings per common share: $ 1.54 $ 1.86 $ 3.91 $ 3.04
Diluted earnings per common share: $ 1.41 $ 1.57 $ 3.55 $ 2.57
Weighted average common shares:
Basic 29,098 27,028 29,244 27,348
Diluted 32,360 33,073 32,542 33,395
Dividends declared per common share: $ 0.20 $ 0.15 $ 0.40 $ 0.30
THE GREENBRIER COMPANIES, INC.
Consolidated Statements of Cash Flows
(In thousands, unaudited)
Six Months Ended
February 29, February 28,
2016 2015
Cash flows from operating activities:
Net earnings $ 164,929 $ 97,028
Adjustments to reconcile net earnings to net cash provided by
(used in) operating activities:
Deferred income taxes (5,287) (3,245)
Depreciation and amortization 27,842 22,398
Net gain on disposition of equipment (11,015) (204)
Stock based compensation expense 10,740 7,193
Noncontrolling interest adjustments 2,815 21,824
Other 491 549
Decrease (increase) in assets:
Accounts receivable, net (30,356) (6,256)
Inventories 21,922 (116,432)
Leased railcars for syndication (15,391) (75,564)
Other (3,717) (355)
Increase (decrease) in liabilities:
Accounts payable and accrued liabilities (55,448) 37,521
Deferred revenue 41,790 7,750
Net cash provided by (used in) operating activities 149,315 (7,793)
Cash flows from investing activities:
Proceeds from sales of assets 80,541 3,019
Capital expenditures (27,974) (53,856)
Investment in and advances to unconsolidated affiliates (5,140) (5,715)
Decrease (increase) in restricted cash (8) 418
Other 2,640 467
Net cash provided by (used in) investing activities 50,059 (55,667)
Cash flows from financing activities:
Net changes in revolving notes with maturities of 90 days or less 26,000 53,000
Proceeds from revolving notes with maturities longer than 90 days - 42,563
Repayments of revolving notes with maturities longer than 90 days (1,888) (18,081)
Repayments of notes payable (3,730) (3,740)
Debt issuance costs (4,149) -
Decrease in restricted cash - 11,000
Repurchase of stock (33,246) (46,946)
Dividends (11,575) (8,016)
Cash distribution to joint venture partner (53,543) (4,422)
Excess tax benefit from restricted stock awards 2,786 3,858
Other (6) -
Net cash provided by (used in) financing activities (79,351) 29,216
Effect of exchange rate changes (9,412) (5,160)
Increase (decrease) in cash and cash equivalents 110,611 (39,404)
Cash and cash equivalents
Beginning of period 172,930 184,916
End of period $ 283,541 $ 145,512
THE GREENBRIER COMPANIES, INC.
Supplemental Information
(In thousands, except per share amounts, unaudited)
Operating Results by Quarter for 2016 are as follows:
First Second Total
Revenue
Manufacturing $ 698,661 $ 454,531 $ 1,153,192
Wheels & Parts 78,729 90,458 169,187
Leasing & Services 24,999 124,090 149,089
802,389 669,079 1,471,468
Cost of revenue
Manufacturing 533,033 361,827 894,860
Wheels & Parts 73,002 81,388 154,390
Leasing & Services 11,589 105,973 117,562
617,624 549,188 1,166,812
Margin 184,765 119,891 304,656
Selling and administrative expense 36,549 38,244 74,793
Net gain on disposition of equipment (269) (10,746) (11,015)
Earnings from operations 148,485 92,393 240,878
Other costs
Interest and foreign exchange 5,436 1,417 6,853
Earnings before income tax and earnings from unconsolidated affiliates 143,049 90,976 234,025
Income tax expense (44,719) (25,734) (70,453)
Earnings before earnings from unconsolidated affiliates 98,330 65,242 163,572
Earnings from unconsolidated affiliates 383 974 1,357
Net earnings 98,713 66,216 164,929
Net earnings attributable to noncontrolling interest (29,280) (21,348) (50,628)
Net earnings attributable to Greenbrier $ 69,433 $ 44,868 $ 114,301
Basic earnings per common share (1) $ 2.36 $ 1.54 $ 3.91
Diluted earnings per common share (1) $ 2.15 $ 1.41 $ 3.55
(1) Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes and restricted stock units that are subject to performance criteria, for which actual levels of performance above target have been achieved, using the treasury stock method when dilutive and the dilutive effect of shares underlying the 2018 Convertible Notes using the "if converted" method in which debt issuance and interest costs, net of tax, were added back to net earnings.
THE GREENBRIER COMPANIES, INC.
Supplemental Information
(In thousands, except per share amounts, unaudited)
Operating Results by Quarter for 2015 are as follows:
First Second Third Fourth Total
Revenue
Manufacturing $ 379,949 $ 505,241 $ 593,376 $ 657,485 $ 2,136,051
Wheels & Parts 86,624 102,640 97,407 84,566 371,237
Leasing & Services 28,485 22,268 23,823 23,414 97,990
495,058 630,149 714,606 765,465 2,605,278
Cost of revenue
Manufacturing 316,037 403,227 465,658 506,492 1,691,414
Wheels & Parts 76,872 92,768 89,645 75,395 334,680
Leasing & Services 14,081 8,844 10,017 8,889 41,831
406,990 504,839 565,320 590,776 2,067,925
Margin 88,068 125,310 149,286 174,689 537,353
Selling and administrative expense 33,729 32,899 45,595 39,568 151,791
Net gain on disposition of equipment (83) (121) (720) (406) (1,330)
Earnings from operations 54,422 92,532 104,411 135,527 386,892
Other costs
Interest and foreign exchange 3,141 1,929 4,285 1,824 11,179
Earnings before income tax and earnings (loss)from unconsolidated affiliates 51,281 90,603 100,126 133,703 375,713
Income tax expense (16,054) (29,372) (30,783) (35,951) (112,160)
Earnings (loss) from unconsolidated affiliates 755 (185) 982 204 1,756
Net earnings 35,982 61,046 70,325 97,956 265,309
Net earnings attributable to noncontrolling interest (3,196) (10,695) (27,514) (31,072) (72,477)
Net earnings attributable to Greenbrier $ 32,786 $ 50,351 $ 42,811 $ 66,884 $ 192,832
Basic earnings per common share (1) $ 1.19 $ 1.86 $ 1.54 $ 2.23 $ 6.85
Diluted earnings per common share (1) $ 1.01 $ 1.57 $ 1.33 $ 2.02 $ 5.93
(1) Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes and restricted stock units that are subject to performance criteria, for which actual levels of performance above target have been achieved, using the treasury stock method when dilutive and the dilutive effect of shares underlying the 2018 Convertible Notes using the "if converted" method in which debt issuance and interest costs, net of tax, were added back to net earnings.
THE GREENBRIER COMPANIES, INC.
Supplemental Information
(In thousands, unaudited)
Segment Information
Three months ended February 29, 2016:
Revenue Earnings (loss) from operations
External Intersegment Total External Intersegment Total
Manufacturing $ 454,531 $ - $ 454,531 $ 78,798 $ 17 $ 78,815
Wheels & Parts 90,458 7,200 97,658 6,506 761 7,267
Leasing & Services 124,090 3,133 127,223 24,412 3,133 27,545
Eliminations - (10,333) (10,333) - (3,911) (3,911)
Corporate - - - (17,323) - (17,323)
$ 669,079 $ - $ 669,079 $ 92,393 $ - $ 92,393
Three months ended November 30, 2015:
Revenue Earnings (loss) from operations
External Intersegment Total External Intersegment Total
Manufacturing $ 698,661 $ - $ 698,661 $ 153,704 $ - $ 153,704
Wheels & Parts 78,729 6,816 85,545 3,403 684 4,087
Leasing & Services 24,999 6,709 31,708 9,958 6,709 16,667
Eliminations - (13,525) (13,525) - (7,393) (7,393)
Corporate - - - (18,580) - (18,580)
$ 802,389 $ - $ 802,389 $ 148,485 $ - $ 148,485
Total assets
February 29, November 30,
(In thousands) 2016 2015
Manufacturing $ 624,961 $ 656,505
Wheels & Parts 307,724 302,164
Leasing & Services 551,763 631,699
Unallocated 385,861 303,147
$ 1,870,309 $ 1,893,515
The results of operations for GBW, which are shown below, are not reflected in the above tables as the investment is accounted for under the equity method of accounting.
As of and for the
Three Months Ended
February 29, 2016 November 30, 2015
Revenue $ 97,700 $ 96,000
Earnings from operations $ 3,600 $ 2,400
Total assets $ 247,700 $ 245,700
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 29, November 30,
2016 2015
Net earnings $ 66,216 $ 98,713
Interest and foreign exchange 1,417 5,436
Income tax expense 25,734 44,719
Depreciation and amortization 14,868 12,974
Adjusted EBITDA $ 108,235 $ 161,842
Three Months
Ended
February 29,
2016
Backlog Activity (units)
Beginning backlog 36,000
Orders received 3,000
Production held as Leased railcars for syndication (1,100)
Production sold directly to third parties (3,800)
Ending backlog 34,100
Delivery Information (units)
Production sold directly to third parties 3,800
Sales of Leased railcars for syndication 700
Total deliveries 4,500
THE GREENBRIER COMPANIES, INC.
Supplemental Information
(In thousands, except per share amounts, unaudited)
Reconciliation of common shares outstanding and diluted earnings per share
The shares used in the computation of the Company's basic and diluted earnings per common share are reconciled as follows:
Three Months Ended
February 29, November 30,
2016 2015
Weighted average basic common shares outstanding (1) 29,098 29,391
Dilutive effect of convertible notes (2) 3,203 3,177
Dilutive effect of performance awards (3) 59 10
Weighted average diluted common shares outstanding 32,360 32,578
(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 are excluded in the Weighted average diluted common shares outstanding as the average stock price during the periods did not exceed the applicable conversion price.
(3) Restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, and are included in Weighted average diluted shares outstanding when the company is in a net earnings position.
Diluted earnings per share was calculated using the more dilutive of two approaches. The first approach includes the dilutive effect, using the treasury stock method, associated with shares underlying the 2026 Convertible notes and performance based restricted stock units that are subject to performance criteria, for which actual levels of performance above target have been achieved. The second approach supplements the first by including the "if converted" effect of the 2018 Convertible notes 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.
Three Months Ended
February 29, November 30,
2016 2015
Net earnings attributable to Greenbrier $ 44,868 $ 69,433
Add back:
Interest and debt issuance costs on the 2018 Convertible notes, net of tax 733 496
Earnings before interest and debt issuance costs on convertible notes $ 45,601 $ 69,929
Weighted average diluted common shares outstanding 32,360 32,578
Diluted earnings per share $ 1.41 $ 2.15
To view the original version on PR Newswire, visit:
https://www.prnewswire.com/news-releases/greenbrier-reports-second-quarter-results-300246106.html SOURCE The Greenbrier Companies, Inc. (GBX)
Fiscal year ends Jul 31, 2015. Values are displayed in millions. Currency is displayed in USD. () = Negative Values.
*GAAP = prior to non-GAAP analyst adjusted earnings.
K=Thousands, M=Millions, B=Billions, TTM=Trailing 12 Month, MRQ=Most Recent Quarter, FYR=Fiscal Year End,
NM=Not Meaningful, NA=Not Available, GAAP = Generally Accepted Accounting Principles used in Financial Statements
issued by the company, Non-GAAP = Adjusted Operating Earnings or Revenue used in comparison to Analyst Estimates.
Adjustments are typically one-time gains or losses.
12.45 PM Oct 01, 2014