LAKE OSWEGO, Ore., Oct. 26, 2018 /PRNewswire/ -- The
Greenbrier Companies, Inc. (NYSE: GBX) today reported financial results for its fourth fiscal quarter and year ended August 31, 2018.
Fourth Quarter Highlights
- Net earnings attributable to Greenbrier for the quarter were $30.9 million, or $0.94 per diluted share, on revenue of $689.2 million.
- Adjusted EBITDA for the quarter was $75.3 million, or 10.9% of revenue.
- New railcar deliveries totaled 6,000 units for the quarter.
- Diversified orders of 9,300 railcars were received during the quarter, valued at over $1.0
billion. Sequential increase in book-to-bill to 1.6x from 1.1x in the third quarter.
- New railcar backlog was 27,400 units with an estimated value of $2.7 billion.
- Board declares a quarterly dividend of $0.25 per share, payable on December 5, 2018 to shareholders of record as of November 14, 2018.
Fiscal Year 2018 Highlights
- Net earnings attributable to Greenbrier for the year were $151.8 million, or $4.68 per diluted share, on revenue of $2.5 billion. Adjusted net earnings
attributable to Greenbrier for the year were $133.9 million, or $4.13 per diluted share.
|
($ in millions except per share)
|
Net earnings attributable
to Greenbrier
|
Diluted EPS
|
|
Unadjusted (GAAP)
|
$151.8
|
$4.68
|
|
GBW goodwill impairment
|
9.5
|
0.29
|
|
Non-recurring tax benefit
|
(27.4)
|
(0.84)
|
|
Adjusted
|
$133.9
|
$4.13
|
- Adjusted EBITDA for the year was $318.2 million, or 12.6% of revenue.
- New railcar deliveries totaled 20,900 units for the year.
- Orders of 21,900 units valued at approximately $2.2 billion across a broad range of railcar
types. 30% of orders originated internationally.
- Cash provided by operating activities exceeded $100 million for the year.
Fiscal Year 2019 Highlights
- Greenbrier renewed, extended and increased its revolving credit facility and leasing term loan totaling $825 million. Extending both facilities to 2023, the additional liquidity supports Greenbrier's strategic
objective to grow at scale.
- Today, Greenbrier separately announced an agreement to form a joint venture with Saudi Railway Company ("SAR") that will
generate a total investment of 1 billion Saudi riyals (USD $270 million) in Saudi Arabia's railway system and a supply of freight railcars for the Saudi rail industry.
William A. Furman, Chairman and CEO, said, "Greenbrier delivered solid results for the fourth
quarter and fiscal 2018. Orders for 21,900 railcars valued at $2.2 billion in 2018 are up
more than 30% compared to 2017, approaching record order levels set in 2015. Additionally, 30% of Greenbrier's orders in
2018 came from international customers. Order momentum in the second half of fiscal 2018 corresponds with an improving
North American market. Railcars in storage have been steadily declining and forecasts for annual railcar deliveries in 2019
and 2020 are expected to exceed 60,000 units each year. Greenbrier's backlog of 27,400 units, valued at $2.7 billion, is diverse by product type and geographic markets served, providing visibility through fiscal
2019 and into 2020."
Furman added, "Greenbrier's earnings performance in fiscal 2018 was our third best ever. Revenue and deliveries were
within the guidance range for the year, and aggregate gross margin remains favorable considering the North American freight
railcar pricing environment. Greenbrier ended the year with a robust balance sheet, ample liquidity and low levels of debt,
positioning us for strong operating cash flow in fiscal 2019."
"Our strategy to diversify internationally is succeeding. Greenbrier has firmly established commercial and manufacturing
operations on four continents. In August, Greenbrier acquired a majority ownership of Turkish railcar builder Rayvag.
This morning GBX announced its intention to establish a joint venture with SAR to execute railway projects and supply
railcars for profitable growth of the Saudi freight rail market. This investment supports the objectives of the Kingdom's
Vision 2030 plan. Recent trade policy advancements in America are also favorable to Greenbrier's international
business. This includes progress by the United States, Mexico and Canada on a free trade agreement and Congressional action that
blunts the advancement of state-owned enterprises and supports free markets for railcar manufacturing and its vast supply chain,"
Furman concluded.
Business Outlook
Based on current business trends and production schedules for fiscal 2019, Greenbrier believes:
- Deliveries will be 24,000 – 26,000 units including Greenbrier-Maxion (Brazil) which will
account for approximately 2,000 units
- Revenue will exceed $3.0 billion
- Diluted EPS of $4.20 – 4.40
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
|
Q4 FY18
|
Q3 FY18
|
Sequential Comparison – Main Drivers
|
|
Revenue
|
$689.2M
|
$641.4M
|
Up 7.5% primarily due to higher volume of deliveries
|
|
Gross margin
|
15.4%
|
16.9%
|
Reflects product mix changes
|
|
Selling and administrative
expense
|
$51.3M
|
$51.8M
|
Continued investments to support international and other strategic
initiatives
|
|
Net gain on disposition of
equipment
|
$4.6M
|
$14.8M
|
Continued rebalancing of lease fleet
|
|
Adjusted EBITDA
|
$75.3M
|
$86.9M
|
Lower operating margin
|
|
Effective tax rate
|
20.1% (1)
|
24.5%
|
Reflects a change in the geographic mix of earnings and additional
non-recurring benefit from Tax Act
|
|
Loss from unconsolidated affiliates
|
($3.1M)
|
($12.8M) (2)
|
Q3 includes $9.5 million non-cash GBW goodwill impairment
|
|
Net earnings attributable to
noncontrolling interest
|
$6.2M
|
$3.3M
|
Higher deliveries and timing of railcar syndications at our GIMSA
JV
|
|
Adjusted net earnings attributable to Greenbrier
|
$26.4M
|
$42.4M
|
Primarily lower operating earnings; Q4 excludes $4.5 million tax
benefit
|
|
Adjusted diluted EPS
|
$0.80
|
$1.30
|
Q4 excludes $0.14 per share tax benefit
|
|
|
|
(1)
|
Includes $4.5 million, or $0.14 per share, benefit related to a transition
tax adjustment from the 2017 Tax Act.
|
|
(2)
|
Includes $9.5 million, net of tax, or $0.29 per share, impact associated
with a non-cash goodwill impairment charge recorded by GBW.
|
Segment Summary
|
Q4 FY18
|
Q3 FY18
|
Sequential Comparison – Main Drivers
|
|
Manufacturing
|
|
Revenue
|
$571.2M
|
$510.1M
|
Up 12.0% due to higher deliveries
|
|
Gross margin
|
14.3%
|
16.1%
|
Reflects product mix changes
|
|
Operating margin (1)
|
10.9%
|
12.2%
|
|
|
Deliveries (2)
|
5,600
|
5,100
|
|
|
Wheels, Repair & Parts (3)
|
|
Revenue
|
$85.8M
|
$94.5M
|
Down 9.2% primarily attributable to lower wheel and component volumes and
scrap sales
|
|
Gross margin
|
7.6%
|
9.2%
|
Down primarily due to lower volumes
|
|
Operating margin (1)
|
4.3%
|
5.9%
|
|
|
Leasing & Services
|
|
Revenue
|
$32.2M
|
$36.8M
|
Down 12.5% due to lower volume of externally sourced railcar
syndications
|
|
Gross margin
|
54.9%
|
47.9%
|
Up due to more normalized mix of revenue
|
|
Operating margin (1) (4)
|
54.2%
|
72.6%
|
|
|
Lease fleet utilization
|
94.4%
|
90.4%
|
|
|
|
|
(1)
|
See supplemental segment information on page 11 for additional
information.
|
|
(2)
|
Excludes Brazil deliveries which are not consolidated into manufacturing
revenue and margin.
|
|
(3)
|
In August 2018, the GBW Railcar Services joint venture was dissolved
resulting in 12 repair locations returning to Greenbrier which are included in the Wheels, Repair & Parts
segment.
|
|
(4)
|
Includes Net gain on disposition of equipment, which is not included in
gross margin.
|
Conference Call
Greenbrier will host a teleconference to discuss its fourth quarter 2018 results. In conjunction with this news release,
Greenbrier has posted a supplemental earnings presentation to our website. Teleconference details are as follows:
- October 26, 2018
- 8:00 a.m. Pacific Daylight Time
- Phone: 1-630-395-0143, Password: "Greenbrier"
- Real-time Audio Access: ("Newsroom" at http://www.gbrx.com)
Please access the site 10 minutes prior to the start time.
About Greenbrier
Greenbrier—headquartered in Lake Oswego, Oregon—is a leading international supplier of
equipment and services to global freight transportation markets. Greenbrier designs, builds and markets freight railcars and
marine barges in North America. Greenbrier Europe is an
end-to-end freight railcar manufacturing, engineering and repair business with operations in Poland, Romania and Turkey that serves
customers across Europe and in the nations of the Gulf Cooperation Council. Greenbrier builds
freight railcars and rail castings in Brazil through two separate strategic partnerships. 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 offers railcar
management, regulatory compliance services and leasing services to railroads and related transportation industries in
North America. Through unconsolidated joint ventures, we produce industrial and rail castings,
tank heads and other components. Greenbrier owns a lease fleet of over 8,100 railcars and performs management services for
357,000 railcars. Learn more about Greenbrier at www.gbrx.com.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This press release may contain
forward-looking statements, including any statements that are not purely statements of historical fact. Greenbrier uses words
such as "anticipates," "believes," "forecast," "potential," "goal," "contemplates," "expects," "intends," "plans," "projects,"
"hopes," "seeks," "estimates," "strategy," "could," "would," "should," "likely," "will," "may," "can," "designed to," "future,"
"foreseeable future" and similar expressions to identify forward-looking statements. These forward-looking statements are not
guarantees of future performance and are subject to certain risks and uncertainties that could cause actual results to differ
materially from the results contemplated by the forward-looking statements. Factors that might cause such a difference include,
but are not limited to, reported backlog and awards that are not indicative of Greenbrier's financial results; uncertainty or
changes in the credit markets and financial services industry; high levels of indebtedness and compliance with the terms of
Greenbrier's indebtedness; write-downs of goodwill, intangibles and other assets in future periods; sufficient availability of
borrowing capacity; fluctuations in demand for newly manufactured railcars or failure to obtain orders as anticipated in
developing forecasts; loss of one or more significant customers; customer payment defaults or related issues; policies and
priorities of the federal government regarding international trade, taxation and infrastructure; sovereign risk to contracts,
exchange rates or property rights; actual future costs and the availability of materials and a trained workforce; failure to
design or manufacture new products or technologies or to achieve certification or market acceptance of new products or
technologies; steel or specialty component price fluctuations and availability and scrap surcharges; changes in product mix and
the mix between segments; labor disputes, energy shortages or operating difficulties that might disrupt manufacturing operations
or the flow of cargo; production difficulties and product delivery delays as a result of, among other matters, costs or
inefficiencies associated with expansion, start-up, or changing of production lines or changes in production rates, changing
technologies, transfer of production between facilities or non-performance of alliance partners, subcontractors or suppliers;
ability to obtain suitable contracts for the sale of leased equipment and risks related to car hire and residual values;
integration of current or future acquisitions and establishment of joint ventures; succession planning; discovery of defects in
railcars or services resulting in increased warranty costs or litigation; physical damage or product or service liability claims
that exceed Greenbrier's insurance coverage; train derailments or other accidents or claims that could subject Greenbrier to
legal claims; actions or inactions by various regulatory agencies including potential environmental remediation obligations or
changing tank car or other railcar or railroad regulation; and issues arising from investigations of whistleblower complaints;
all as may be discussed in more detail under the headings "Risk Factors" and "Forward Looking Statements" in Greenbrier's Annual
Report on Form 10-K for the fiscal year ended August 31, 2017, Greenbrier's Quarterly Report on
Form 10-Q for the fiscal quarter ended May 31, 2018, and Greenbrier's other reports on file with
the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements,
which reflect management's opinions only as of the date hereof. Except as otherwise required by law, Greenbrier does not assume
any obligation to update any forward-looking statements.
Adjusted EBITDA, Adjusted net earnings attributable to Greenbrier and Adjusted diluted EPS are not financial measures under
generally accepted accounting principles (GAAP). These metrics are performance measurement tools commonly used by rail supply
companies and Greenbrier. You should not consider these metrics in isolation or as a substitute for other financial statement
data determined in accordance with GAAP. In addition, because these metrics are not a measure of financial performance under GAAP
and are susceptible to varying calculations, the measures presented may differ from and may not be comparable to similarly titled
measures used by other companies.
We define Adjusted EBITDA as Net earnings before Interest and foreign exchange, Income tax expense (benefit), Depreciation and
amortization and excluding the impact associated with items we do not believe are indicative of our core business or which affect
comparability. We believe the presentation of Adjusted EBITDA provides useful information as it excludes the impact of financing,
foreign exchange, income taxes and the accounting effects of capital spending. These items may vary for different companies for
reasons unrelated to the overall operating performance of a company's core business. We believe this assists in comparing our
performance across reporting periods.
Adjusted net earnings attributable to Greenbrier and Adjusted diluted EPS excludes the impact associated with items we do not
believe are indicative of our core business or which affect comparability. We believe this assists in comparing our performance
across reporting periods.
|
THE GREENBRIER COMPANIES, INC.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(In thousands, unaudited)
|
|
|
August 31,
2018
|
May 31,
2018
|
February 28,
2018
|
November 30,
2017
|
August 31,
2017
|
|
Assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
$ 530,655
|
$ 589,969
|
$ 586,008
|
$ 591,406
|
$ 611,466
|
|
Restricted cash
|
8,819
|
9,204
|
8,875
|
8,839
|
8,892
|
|
Accounts receivable, net
|
348,406
|
322,328
|
321,795
|
315,393
|
279,964
|
|
Inventories
|
432,314
|
396,518
|
408,419
|
411,371
|
400,127
|
|
Leased railcars for syndication
|
130,926
|
158,194
|
168,748
|
130,991
|
91,272
|
|
Equipment on operating leases, net
|
322,855
|
302,074
|
258,417
|
274,598
|
315,941
|
|
Property, plant and equipment, net
|
457,196
|
424,035
|
429,465
|
426,961
|
428,021
|
|
Investment in unconsolidated affiliates
|
61,414
|
75,884
|
98,009
|
101,529
|
108,255
|
|
Intangibles and other assets, net
|
94,668
|
82,030
|
83,308
|
83,819
|
85,177
|
|
Goodwill
|
78,211
|
70,347
|
69,011
|
67,783
|
68,590
|
|
$ 2,465,464
|
$ 2,430,583
|
$ 2,432,055
|
$ 2,412,690
|
$ 2,397,705
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
Revolving notes
|
$ 27,725
|
$ 20,337
|
$ 7,990
|
$ 6,885
|
$ 4,324
|
|
Accounts payable and accrued liabilities
|
449,857
|
447,827
|
461,088
|
441,373
|
415,061
|
|
Deferred income taxes
|
31,740
|
36,657
|
41,257
|
69,984
|
75,791
|
|
Deferred revenue
|
105,954
|
102,919
|
85,886
|
120,044
|
129,260
|
|
Notes payable, net
|
436,205
|
437,833
|
559,755
|
558,987
|
558,228
|
|
|
|
|
|
|
|
Contingently redeemable noncontrolling
interest
|
29,768
|
31,135
|
33,046
|
35,209
|
36,148
|
|
|
|
|
|
|
|
Total equity - Greenbrier
|
1,250,101
|
1,225,512
|
1,095,447
|
1,032,557
|
1,018,130
|
|
Noncontrolling interest
|
134,114
|
128,363
|
147,586
|
147,651
|
160,763
|
|
Total equity
|
1,384,215
|
1,353,875
|
1,243,033
|
1,180,208
|
1,178,893
|
|
$ 2,465,464
|
$ 2,430,583
|
$ 2,432,055
|
$ 2,412,690
|
$ 2,397,705
|
|
THE GREENBRIER COMPANIES, INC
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
(In thousands, except per share amounts, unaudited)
|
|
|
Years Ended August 31,
|
|
|
2018
|
|
2017
|
|
2016
|
|
|
Revenue
|
|
|
|
|
|
|
|
Manufacturing
|
$ 2,044,586
|
|
$ 1,725,188
|
|
$ 2,096,331
|
|
|
Wheels, Repair & Parts (1)
|
347,023
|
|
312,679
|
|
322,395
|
|
|
Leasing & Services
|
127,855
|
|
131,297
|
|
260,798
|
|
|
2,519,464
|
|
2,169,164
|
|
2,679,524
|
|
|
Cost of revenue
|
|
|
|
|
|
|
|
Manufacturing
|
1,727,407
|
|
1,373,967
|
|
1,630,554
|
|
|
Wheels, Repair & Parts (1)
|
318,330
|
|
288,336
|
|
293,751
|
|
|
Leasing & Services
|
64,672
|
|
85,562
|
|
203,782
|
|
|
2,110,409
|
|
1,747,865
|
|
2,128,087
|
|
|
|
|
|
|
|
|
|
Margin
|
409,055
|
|
421,299
|
|
551,437
|
|
|
|
|
|
|
|
|
|
Selling and administrative
|
200,439
|
|
170,607
|
|
158,681
|
|
|
Net gain on disposition of equipment
|
(44,369)
|
|
(9,740)
|
|
(15,796)
|
|
|
Earnings from operations
|
252,985
|
|
260,432
|
|
408,552
|
|
|
|
|
|
|
|
|
|
Other costs
|
|
|
|
|
|
|
|
Interest and foreign exchange
|
29,368
|
|
24,192
|
|
13,502
|
|
|
Earnings before income tax and earnings (loss) from unconsolidated affiliates
|
223,617
|
|
236,240
|
|
395,050
|
|
|
Income tax expense
|
(32,893)
|
|
(64,014)
|
|
(112,322)
|
|
|
Earnings before earnings (loss) from unconsolidated affiliates
|
190,724
|
|
172,226
|
|
282,728
|
|
|
Earnings (loss) from unconsolidated affiliates
|
(18,661)
|
|
(11,764)
|
|
2,096
|
|
|
|
|
|
|
|
|
|
Net earnings
|
172,063
|
|
160,462
|
|
284,824
|
|
|
Net earnings attributable to noncontrolling interest
|
(20,282)
|
|
(44,395)
|
|
(101,611)
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to Greenbrier
|
$ 151,781
|
|
$ 116,067
|
|
$ 183,213
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share
|
$ 4.92
|
|
$ 3.97
|
|
$ 6.28
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
$ 4.68
|
|
$ 3.65
|
|
$ 5.73
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
|
|
|
|
|
|
|
|
Basic
|
30,857
|
|
29,225
|
|
29,156
|
|
|
Diluted
|
32,835
|
|
32,562
|
|
32,468
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share
|
$ 0.96
|
|
$ 0.86
|
|
$ 0.81
|
|
|
|
(1)
|
In August 2018, the GBW Railcar Services joint venture was dissolved
resulting in 12 repair locations returning to Greenbrier which are included in the Wheels, Repair & Parts
segment.
|
|
THE GREENBRIER COMPANIES, INC
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In thousands, unaudited)
|
|
|
Years Ended August 31,
|
|
2018
|
|
2017
|
|
2016
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Net earnings
|
$ 172,063
|
|
$ 160,462
|
|
$ 284,824
|
|
Adjustments to reconcile net earnings to net cash
provided by operating activities:
|
|
|
|
|
|
|
Deferred income taxes
|
(40,496)
|
|
4,377
|
|
(8,935)
|
|
Depreciation and amortization
|
74,356
|
|
65,129
|
|
63,345
|
|
Net gain on disposition of equipment
|
(44,369)
|
|
(9,740)
|
|
(15,796)
|
|
Stock based compensation expense
|
29,314
|
|
26,427
|
|
24,037
|
|
Accretion of debt discount
|
4,171
|
|
2,340
|
|
-
|
|
Noncontrolling interest adjustments
|
2,864
|
|
(677)
|
|
526
|
|
Other
|
1,688
|
|
(845)
|
|
560
|
|
Decrease (increase) in assets:
|
|
|
|
|
|
|
Accounts receivable,
net
|
(83,551)
|
|
(25,272)
|
|
(32,051)
|
|
Inventories
|
(26,592)
|
|
(2,787)
|
|
53,711
|
|
Leased railcars for
syndication
|
(54,023)
|
|
41,015
|
|
19,154
|
|
Other
|
34,115
|
|
17,558
|
|
(16,989)
|
|
Increase (decrease) in liabilities:
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
54,032
|
|
(25,422)
|
|
(85,928)
|
|
Deferred
revenue
|
(20,231)
|
|
33,039
|
|
50,712
|
|
Net cash provided by operating activities
|
103,341
|
|
285,604
|
|
337,170
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Acquisitions, net of cash acquired
|
(34,874)
|
|
(27,127)
|
|
-
|
|
Proceeds from sales of assets
|
153,224
|
|
24,149
|
|
103,715
|
|
Capital expenditures
|
(176,848)
|
|
(86,065)
|
|
(139,013)
|
|
Decrease (increase) in restricted cash
|
73
|
|
15,387
|
|
(15,410)
|
|
Investment in and advances to unconsolidated
affiliates
|
(26,455)
|
|
(40,632)
|
|
(12,855)
|
|
Cash distribution from joint ventures
|
4,661
|
|
550
|
|
7,855
|
|
Net cash used in investing activities
|
(80,219)
|
|
(113,738)
|
|
(55,708)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Net changes in revolving notes with maturities of 90
days or less
|
23,401
|
|
4,324
|
|
(49,000)
|
|
Repayments of revolving notes with maturities longer
than 90 days
|
-
|
|
-
|
|
(1,888)
|
|
Proceeds from issuance of notes payable
|
13,771
|
|
276,093
|
|
-
|
|
Repayments of notes payable
|
(22,269)
|
|
(8,297)
|
|
(22,299)
|
|
Debt issuance costs
|
-
|
|
(9,082)
|
|
(4,161)
|
|
Repurchase of stock
|
-
|
|
-
|
|
(33,498)
|
|
Dividends
|
(29,914)
|
|
(24,890)
|
|
(23,303)
|
|
Cash distribution to joint venture partner
|
(73,033)
|
|
(28,511)
|
|
(95,092)
|
|
Investment by joint venture partner
|
6,500
|
|
-
|
|
5,400
|
|
Tax payments for net share settlement of restricted
stock
|
(7,723)
|
|
(5,215)
|
|
(5,500)
|
|
Excess tax benefit from restricted stock
awards
|
-
|
|
-
|
|
2,813
|
|
Other
|
-
|
|
-
|
|
(887)
|
|
Net cash provided by (used in) financing
activities
|
(89,267)
|
|
204,422
|
|
(227,415)
|
|
Effect of exchange rate changes
|
(14,666)
|
|
12,499
|
|
(4,298)
|
|
(Decrease) increase in cash and cash
equivalents
|
(80,811)
|
|
388,787
|
|
49,749
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
Beginning of period
|
611,466
|
|
222,679
|
|
172,930
|
|
End of period
|
$ 530,655
|
|
$ 611,466
|
|
$ 222,679
|
|
|
|
|
|
|
|
THE GREENBRIER COMPANIES, INC.
|
|
|
SUPPLEMENTAL INFORMATION
|
|
(In thousands, except per share amounts, unaudited)
|
|
|
Operating Results by Quarter for 2018 are as follows:
|
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
$ 451,485
|
|
$ 511,827
|
|
$ 510,099
|
|
$ 571,175
|
|
$ 2,044,586
|
|
|
Wheels, Repair & Parts (1)
|
78,011
|
|
88,710
|
|
94,515
|
|
85,787
|
|
347,023
|
|
|
Leasing & Services
|
30,039
|
|
28,799
|
|
36,773
|
|
32,244
|
|
127,855
|
|
|
559,535
|
|
629,336
|
|
641,387
|
|
689,206
|
|
2,519,464
|
|
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
380,850
|
|
429,165
|
|
427,875
|
|
489,517
|
|
1,727,407
|
|
|
Wheels, Repair & Parts (1)
|
72,506
|
|
80,708
|
|
85,850
|
|
79,266
|
|
318,330
|
|
|
Leasing & Services
|
16,865
|
|
14,116
|
|
19,155
|
|
14,536
|
|
64,672
|
|
|
470,221
|
|
523,989
|
|
532,880
|
|
583,319
|
|
2,110,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin
|
89,314
|
|
105,347
|
|
108,507
|
|
105,887
|
|
409,055
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and administrative expense
|
47,043
|
|
50,294
|
|
51,793
|
|
51,309
|
|
200,439
|
|
|
Net gain on disposition of equipment
|
(19,171)
|
|
(5,817)
|
|
(14,825)
|
|
(4,556)
|
|
(44,369)
|
|
|
Earnings from operations
|
61,442
|
|
60,870
|
|
71,539
|
|
59,134
|
|
252,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other costs
|
|
|
|
|
|
|
|
|
|
|
|
Interest and foreign exchange
|
7,020
|
|
7,029
|
|
6,533
|
|
8,786
|
|
29,368
|
|
|
Earnings before income tax and earnings (loss) from unconsolidated
affiliates
|
54,422
|
|
53,841
|
|
65,006
|
|
50,348
|
|
223,617
|
|
|
Income tax benefit (expense)
|
(18,135)
|
|
11,301
|
|
(15,944)
|
|
(10,115)
|
|
(32,893)
|
|
|
Earnings before earnings (loss) from unconsolidated affiliates
|
36,287
|
|
65,142
|
|
49,062
|
|
40,233
|
|
190,724
|
|
|
Earnings (loss) from unconsolidated affiliates
|
(2,910)
|
|
147
|
|
(12,823)
|
|
(3,075)
|
|
(18,661)
|
|
|
Net earnings
|
33,377
|
|
65,289
|
|
36,239
|
|
37,158
|
|
172,063
|
|
|
Net earnings attributable to
noncontrolling interest
|
(7,124)
|
|
(3,647)
|
|
(3,288)
|
|
(6,223)
|
|
(20,282)
|
|
|
Net earnings attributable to Greenbrier
|
$ 26,253
|
|
$ 61,642
|
|
$ 32,951
|
|
$ 30,935
|
|
$ 151,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share (2)
|
$ 0.90
|
|
$ 2.10
|
|
$ 1.03
|
|
$ 0.95
|
|
$ 4.92
|
|
|
Diluted earnings per common share (2)
|
$ 0.83
|
|
$ 1.91
|
|
$ 1.01
|
|
$ 0.94
|
|
$ 4.68
|
|
|
|
|
(1)
|
In August 2018, the GBW Railcar Services joint venture was dissolved
resulting in 12 repair locations returning to Greenbrier which are included in the Wheels, Repair & Parts
segment.
|
|
(2)
|
Quarterly amounts do not total to the year to date amount as each period is
calculated discretely. Diluted earnings per common share excludes the dilutive effect of the 2024 Convertible Notes,
since the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive,
using the treasury stock method but includes restricted stock units that are not considered participating securities,
restricted stock units that are subject to performance criteria, for which actual levels of performance above target have
been achieved, and the dilutive effect of shares underlying the 2018 Convertible Notes using the "if converted" method,
during the periods in which they were outstanding, in which debt issuance and interest costs, net of tax, were added back
to net earnings.
|
|
THE GREENBRIER COMPANIES, INC.
|
|
|
SUPPLEMENTAL INFORMATION
|
|
(In thousands, except per share amounts, unaudited)
|
|
|
Operating Results by Quarter for 2017 are as follows:
|
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
$ 454,033
|
|
$ 445,504
|
|
$ 317,104
|
|
$ 508,547
|
|
$ 1,725,188
|
|
|
Wheels, Repair & Parts (1)
|
69,635
|
|
82,714
|
|
85,231
|
|
75,099
|
|
312,679
|
|
|
Leasing & Services
|
28,646
|
|
38,064
|
|
36,826
|
|
27,761
|
|
131,297
|
|
|
552,314
|
|
566,282
|
|
439,161
|
|
611,407
|
|
2,169,164
|
|
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
356,555
|
|
346,653
|
|
245,228
|
|
425,531
|
|
1,373,967
|
|
|
Wheels, Repair & Parts (1)
|
64,978
|
|
75,497
|
|
77,985
|
|
69,876
|
|
288,336
|
|
|
Leasing & Services
|
18,030
|
|
25,207
|
|
26,247
|
|
16,078
|
|
85,562
|
|
|
439,563
|
|
447,357
|
|
349,460
|
|
511,485
|
|
1,747,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin
|
112,751
|
|
118,925
|
|
89,701
|
|
99,922
|
|
421,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and administrative expense
|
41,213
|
|
39,495
|
|
42,810
|
|
47,089
|
|
170,607
|
|
|
Net gain on disposition of equipment
|
(1,122)
|
|
(2,090)
|
|
(1,581)
|
|
(4,947)
|
|
(9,740)
|
|
|
Earnings from operations
|
72,660
|
|
81,520
|
|
48,472
|
|
57,780
|
|
260,432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other costs
|
|
|
|
|
|
|
|
|
|
|
|
Interest and foreign exchange
|
1,724
|
|
5,673
|
|
7,894
|
|
8,901
|
|
24,192
|
|
|
Earnings before income tax and loss from unconsolidated
affiliates
|
70,936
|
|
75,847
|
|
40,578
|
|
48,879
|
|
236,240
|
|
|
Income tax expense
|
(20,386)
|
|
(24,858)
|
|
(8,656)
|
|
(10,114)
|
|
(64,014)
|
|
|
Earnings before loss from unconsolidated affiliates
|
50,550
|
|
50,989
|
|
31,922
|
|
38,765
|
|
172,226
|
|
|
Loss from unconsolidated affiliates
|
(2,584)
|
|
(1,988)
|
|
(681)
|
|
(6,511)
|
|
(11,764)
|
|
|
Net earnings
|
47,966
|
|
49,001
|
|
31,241
|
|
32,254
|
|
160,462
|
|
|
Net earnings attributable to noncontrolling interest
|
(23,004)
|
|
(14,465)
|
|
1,582
|
|
(8,508)
|
|
(44,395)
|
|
|
Net earnings attributable to Greenbrier
|
$ 24,962
|
|
$ 34,536
|
|
$ 32,823
|
|
$ 23,746
|
|
$ 116,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share (2)
|
$ 0.86
|
|
$ 1.19
|
|
$ 1.12
|
|
$ 0.81
|
|
$ 3.97
|
|
|
Diluted earnings per common share (2)
|
$ 0.79
|
|
$ 1.09
|
|
$ 1.03
|
|
$ 0.75
|
|
$ 3.65
|
|
|
|
|
(1)
|
In August 2018, the GBW Railcar Services joint venture was dissolved
resulting in 12 repair locations returning to Greenbrier which are included in the Wheels, Repair & Parts
segment.
|
|
(2)
|
Quarterly amounts do not total to the year to date amount as each period is
calculated discretely. Diluted earnings per common share excludes the dilutive effect of the 2024 Convertible Notes,
since the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive,
but includes restricted stock units that are subject to performance criteria, for which actual levels of performance
above target have been achieved, using the treasury stock method when dilutive and the dilutive effect of shares
underlying the 2018 Convertible Notes using the "if converted" method in which debt issuance and interest costs, net of
tax, were added back to net earnings.
|
|
THE GREENBRIER COMPANIES, INC.
|
|
SUPPLEMENTAL INFORMATION
|
|
(In thousands, unaudited)
|
|
|
Segment Information
|
|
|
Three months ended August 31, 2018:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Earnings (loss) from operations
|
|
External
|
|
Intersegment
|
|
Total
|
|
External
|
|
Intersegment
|
|
Total
|
|
Manufacturing
|
$ 571,175
|
|
$ 33,904
|
|
$ 605,079
|
|
$ 62,312
|
|
$ 3,905
|
|
$ 66,217
|
|
Wheels, Repair & Parts (1)
|
85,787
|
|
13,931
|
|
99,718
|
|
3,648
|
|
534
|
|
4,182
|
|
Leasing & Services
|
32,244
|
|
1,992
|
|
34,236
|
|
17,473
|
|
1,750
|
|
19,223
|
|
Eliminations
|
-
|
|
(49,827)
|
|
(49,827)
|
|
-
|
|
(6,189)
|
|
(6,189)
|
|
Corporate
|
-
|
|
-
|
|
-
|
|
(24,299)
|
|
-
|
|
(24,299)
|
|
$ 689,206
|
|
$
-
|
|
$ 689,206
|
|
$ 59,134
|
|
$
-
|
|
$ 59,134
|
|
|
|
|
|
|
|
|
|
|
Three months ended May 31, 2018:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Earnings (loss) from operations
|
|
External
|
|
Intersegment
|
|
Total
|
|
External
|
|
Intersegment
|
|
Total
|
|
Manufacturing
|
$ 510,099
|
|
$ 53,501
|
|
$ 563,600
|
|
$ 62,435
|
|
6,215
|
|
$ 68,650
|
|
Wheels, Repair & Parts (1)
|
94,515
|
|
10,879
|
|
105,394
|
|
5,546
|
|
686
|
|
6,232
|
|
Leasing & Services
|
36,773
|
|
3,886
|
|
40,659
|
|
26,704
|
|
3,380
|
|
30,084
|
|
Eliminations
|
-
|
|
(68,266)
|
|
(68,266)
|
|
-
|
|
(10,281)
|
|
(10,281)
|
|
Corporate
|
-
|
|
-
|
|
-
|
|
(23,146)
|
|
-
|
|
(23,146)
|
|
$ 641,387
|
|
$
-
|
|
$ 641,387
|
|
$ 71,539
|
|
$
-
|
|
$ 71,539
|
|
|
|
|
Total assets
|
|
|
August 31,
|
|
May 31,
|
|
|
2018
|
|
2018
|
|
|
Manufacturing
|
$ 1,020,757
|
|
$ 924,869
|
|
|
Wheels, Repair & Parts (1)
|
306,756
|
|
243,641
|
|
|
Leasing & Services
|
578,818
|
|
578,259
|
|
|
Unallocated
|
559,133
|
|
683,814
|
|
|
$ 2,465,464
|
|
$ 2,430,583
|
|
|
|
|
(1)
|
In August 2018, the GBW Railcar Services joint venture was dissolved
resulting in 12 repair locations returning to Greenbrier which are included in the Wheels, Repair & Parts
segment.
|
|
THE GREENBRIER COMPANIES, INC.
|
|
SUPPLEMENTAL INFORMATION
|
|
(In thousands, excluding backlog and delivery units,
unaudited)
|
|
|
Reconciliation of Net earnings to Adjusted EBITDA
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
August 31,
2018
|
|
May 31,
2018
|
|
August 31,
2018
|
|
Net earnings
|
$ 37,158
|
|
$ 36,239
|
|
$ 172,063
|
|
Interest and foreign exchange
|
8,786
|
|
6,533
|
|
29,368
|
|
Income tax expense
|
10,115
|
|
15,944
|
|
32,893
|
|
Depreciation and amortization
|
19,195
|
|
18,707
|
|
74,356
|
|
GBW goodwill impairment, net of tax
|
-
|
|
9,493
|
|
9,493
|
|
Adjusted EBITDA
|
$ 75,254
|
|
$ 86,916
|
|
$ 318,173
|
|
|
|
Three Months
Ended
August 31,
2018
|
|
Year
Ended
August 31,
2018
|
|
|
Backlog Activity (units)
|
|
|
|
|
|
|
|
Beginning backlog
|
24,200
|
|
28,600
|
|
|
Orders received (1)
|
9,300
|
|
21,900
|
|
|
Production held as Leased railcars for syndication
|
(600)
|
|
(4,750)
|
|
|
Production sold directly to third parties (1)
|
(5,500)
|
|
(18,350)
|
|
|
Ending backlog
|
27,400
|
|
27,400
|
|
|
|
|
|
|
|
Delivery Information (units)
|
|
|
|
|
|
Production sold directly to third parties (1)
|
5,500
|
|
18,350
|
|
|
Sales of Leased railcars for syndication
|
500
|
|
2,550
|
|
|
Total deliveries
|
6,000
|
|
20,900
|
|
|
|
(1)
|
Includes Greenbrier-Maxion, our Brazilian railcar manufacturer, which is
accounted for under the equity method
|
|
THE GREENBRIER COMPANIES, INC.
|
|
SUPPLEMENTAL INFORMATION
|
|
(In thousands, except per share amounts, unaudited)
|
|
|
Reconciliation of common shares outstanding and diluted earnings per
share
|
|
|
The shares used in the computation of the Company's basic and diluted
earnings per common share are reconciled as follows:
|
|
|
Three Months Ended
|
|
Year Ended
|
|
August 31,
2018
|
May 31,
2018
|
|
August 31,
2018
|
|
Weighted average basic common shares outstanding
(1)
|
32,663
|
32,034
|
|
30,857
|
|
Dilutive effect of convertible notes (2)
|
-
|
655
|
|
1,821
|
|
Dilutive effect of restricted stock units (3)
|
357
|
225
|
|
157
|
|
Weighted average diluted common shares outstanding
|
33,020
|
32,914
|
|
32,835
|
|
|
(1)
|
Restricted stock grants and restricted stock units that are considered
participating securities, including some grants subject to certain performance criteria, are included in weighted average
basic common shares outstanding when the Company is in a net earnings position.
|
|
(2)
|
The dilutive effect of the 2018 Convertible notes was included as they were
considered dilutive under the "if converted" method as further discussed below. The 2018 Convertible notes matured April
1, 2018.
|
|
(3)
|
Restricted stock units that are not considered participating securities and
restricted stock units subject to performance criteria, for which actual levels of performance above target have been
achieved, are included in Weighted average diluted shares outstanding when the Company is in a net earnings
position.
|
Diluted EPS was calculated using the more dilutive of two approaches. The first approach includes the dilutive effect,
using the treasury stock method, associated with shares underlying the 2024 Convertible notes, restricted stock units that are
not considered participating securities, and performance based restricted stock units that are subject to performance criteria,
for which actual levels of performance above target have been achieved. The second approach supplements the first by including
the "if converted" effect of the 2018 Convertible notes during the periods in which they were outstanding. Under the "if
converted method" debt issuance and interest costs, both net of tax, associated with the convertible notes are added back to net
earnings and the share count is increased by the shares underlying the convertible notes. The 2024 Convertible notes are
included in the calculation of both approaches when the average stock price is greater than the applicable conversion price.
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
|
August 31,
2018
|
|
May 31,
2018
|
|
August 31,
2018
|
|
|
Net earnings attributable to Greenbrier
|
$ 30,935
|
|
$ 32,951
|
|
$ 151,781
|
|
|
GBW goodwill impairment, net of tax
|
-
|
|
9,493
|
|
9,493
|
|
|
Non-recurring Tax Act benefit
|
(4,535)
|
|
-
|
|
(27,408)
|
|
|
Adjusted net earnings attributable to Greenbrier
|
$ 26,400
|
|
$ 42,444
|
|
$ 133,866
|
|
|
THE GREENBRIER COMPANIES, INC.
|
|
SUPPLEMENTAL INFORMATION
|
|
(In thousands, except per share amounts, unaudited)
|
|
|
Reconciliation of common shares outstanding and diluted earnings per
share (continued)
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
August 31,
2018
|
|
May 31,
2018
|
|
August 31,
2018
|
|
|
Net earnings attributable to Greenbrier
|
$ 30,935
|
|
$ 32,951
|
|
$ 151,781
|
|
|
Add back:
|
|
|
|
|
|
|
|
Interest and debt issuance costs on the 2018 Convertible notes, net of
tax
|
-
|
|
297
|
|
2,031
|
|
|
Earnings before interest and debt issuance costs on convertible notes
|
$ 30,935
|
|
$ 33,248
|
|
$ 153,812
|
|
|
Weighted average diluted common shares outstanding
|
33,020
|
|
32,914
|
|
32,835
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
$
0.94
|
|
$
1.01
|
|
$
4.68
|
|
|
GBW goodwill impairment
|
-
|
|
0.29
|
(1)
|
0.29
|
(1)
|
|
Non-recurring Tax Act benefit
|
(0.14)
|
(2)
|
-
|
|
(0.84)
|
(2)
|
|
Adjusted diluted earnings per share
|
$
0.80
|
|
$
1.30
|
|
$
4.13
|
(3)
|
|
|
|
(1)
|
Non-cash GBW goodwill impairment of $9.5 million, net of tax, divided by
weighted average diluted common shares outstanding for the relevant period.
|
|
(2)
|
Non-recurring net benefit of $4.5 million in Q4 and $27.4 million in 2018
related to the 2017 Tax Act.
|
|
(3)
|
Approximation due to rounding.
|
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SOURCE The Greenbrier Companies, Inc. (GBX)