Exhibit 99.1

 

News Release    LOGO
One Centerpointe Drive, Suite 200, Lake Oswego, Oregon 97035 503-684-7000    www.gbrx.com

 

For release: April 7, 2020 6:00 a.m. EDT    Contact:   

Lorie Tekorius, Investor Relations

Justin Roberts, Investor Relations

Ph: 503-684-7000

Greenbrier Reports Fiscal Second Quarter 2020 Results

~ Announces orders of 8,500 railcars valued at over $815 million ~

~ Strong liquidity position; targeting $1 billion of available liquidity ~

~ $3.2 billion backlog provides forward visibility ~

Lake Oswego, Oregon, April

 7, 2020 – The Greenbrier Companies, Inc. (NYSE: GBX) (“Greenbrier”), a leading international supplier of equipment and services to global freight transportation markets, today reported financial results for its second fiscal quarter ended February 29, 2020.

Second Quarter Highlights

 

   

Base liquidity of $620 million consisting of cash of $170 million and $450 million available under committed credit facilities with high quality lenders. Greenbrier is targeting total liquidity of $1 billion.

 

   

Greenbrier’s manufacturing and service sites continue operations as “Essential Business” under directives issued by the U.S. Department of Homeland Security (DHS) and other government authorities.

 

   

Orders for 8,500 diversified railcars were received during the quarter, with over 50% originating from international sources. New railcar backlog increased to 30,800 units with an estimated value of $3.2 billion as of February 29, 2020.

 

   

Net earnings attributable to Greenbrier for the quarter were $13.6 million, or $0.41 per diluted share, on revenue of $623.8 million. Net earnings include a mutually beneficial contract modification removing railcars from backlog that would have been produced in the second half of fiscal 2020 in exchange for $9.2 million, after tax. This modification strengthens the quality and amount of Greenbrier’s backlog and improves cash on hand.

 

   

Adjusted net earnings attributable to Greenbrier for the quarter were $15.3 million, or $0.46 per diluted share, excluding $1.7 million, after tax, ($0.05 per share) of integration related expenses from the American Railcar Industries (ARI) acquisition.

 

   

Adjusted EBITDA for the quarter was $71.6 million, or 11.5% of revenue.

 

   

Board declares a quarterly dividend of $0.27 per share, payable on May 13, 2020 to shareholders as of April 22, 2020.

William A. Furman, Chairman & CEO commented, “Greenbrier is focused on two primary goals: protecting the safety and health of employees and preserving the economic well-being of our enterprise in this challenging environment. We are executing on the latter by increasing liquidity and sizing the organization properly in the current business environment.”

 

-More-


Greenbrier Reports Second Quarter Results (Cont.)   Page 2

 

Additional Comments from the CEO

Market conditions drove actions in the first half to size Greenbrier’s manufacturing footprint for lower levels of railcar demand, with reductions of 3,500 global employees to scale production capacity. Manufacturing workforce reductions were primarily in Mexico. Amid the uncertain and rapidly changing impacts on the global economy from the COVID-19 pandemic, Greenbrier is suspending its previously issued guidance for fiscal 2020. Greenbrier has initiated a range of proactive responses to address conditions in the rail equipment industry and the impact of the pandemic. The Company is eliminating all non-essential capital expenditures and is aggressively reducing overhead and SG&A expense. Greenbrier has eliminated all non-essential travel and implemented a hiring freeze while evaluating its total operating unit footprints. Collectively, these measures will generate substantial cash savings. Finally, the members of Greenbrier’s Board of Directors, including me, have voluntarily reduced annual compensation.

All of Greenbrier’s manufacturing and service facilities continue regular operations. Greenbrier functions as an essential infrastructure business under guidance issued by DHS and supports operations vital to the national transportation system and operations of the Department of Defense and other federal agencies, under the statutory and regulatory authority of the Department of Transportation, the Surface Transportation Board, the Federal Railroad Administration, and the Jones Act. Similar guidelines and authorities exist in other nations where we operate. Greenbrier’s manufacturing backlog and factories will provide cash flow resiliency. With the strength of our current backlog and balance sheet, we expect to continue to operate while observing stringent health and safety protocols. Continuity of the business alongside employee health and welfare are Greenbrier’s highest priorities. Maintaining cash flow and liquidity are essential components of Greenbrier’s current operating strategy.

Business Update

Greenbrier continued to rationalize its global manufacturing footprint in the second quarter by idling excess production capacity at its North American manufacturing facilities as well as its aftermarket wheels, repair and parts locations that operate within Greenbrier Rail Services (GRS). Significant manufacturing efficiency programs also were implemented at Greenbrier facilities in Brazil and Europe in fiscal 2019.

As mentioned above, Greenbrier’s operations constitute “Essential Infrastructure” and “Essential Businesses” as defined by relevant U.S. agency guidance and advisories and in all “stay at home” orders issued in all U.S. jurisdictions where we operate. The only exception in our entire operating network is a planned two-week shutdown of our facilities in Europe over Easter to allow for the supply chain to normalize. Greenbrier is dedicated to fulfilling its role to facilitate the continued stability of transportation supply infrastructure. Greenbrier will help maintain the delivery of vital goods, including food, medical supplies and fuel to communities and to support the United States’ national security infrastructure.

At all facilities worldwide, Greenbrier policies meet or exceed CDC recommendations. Expanded health screenings, including temperature readings, operating through split shifts, and enhanced social distancing practices have reduced the number of employees in a location at the same time. At present, Greenbrier facilities have been minimally impacted by COVID-19. Precautions and processes are in place for exposures to be reported and addressed.

 

-More-


Greenbrier Reports Second Quarter Results (Cont.)   Page 3

 

Like other companies, Greenbrier cannot predict with certainty the impact that the COVID-19 pandemic may have on our business due to numerous uncertainties, including the duration of the pandemic, the impact to customers and suppliers, actions that may be taken by governmental authorities and other consequences. As a result, Greenbrier is focused on continuous contingency planning and risk analysis. Greenbrier’s strong backlog, coupled with aggressive actions to slow down or shutter production lines and reduce overhead, leaves little open production space for the remainder of the fiscal and calendar year. Additionally, the Company plans to access current and proposed government programs for strategic businesses to protect our workforce and ensure economic viability of the enterprise.

Certain orders and backlog in this release are subject to customary documentation and completion of terms.

Financial Summary

 

     Q2 FY20    Q1 FY20   

Sequential Comparison – Main Drivers

Revenue

   $623.8M    $769.4M    Fewer deliveries due to lower production rates and timing of syndication activity

Gross margin

   13.8%    12.0%    Improved product mix and customer payment related to contract modification

Adjusted EBITDA

   $71.6M    $74.2M    Lower revenue and operating earnings

Effective tax rate

   28.9%    20.7%    Geographic mix of earnings and discrete items

Earnings from unconsolidated affiliates

   $1.7M    $1.1M    Improved efficiencies and higher deliveries in Brazil

Net earnings attributable to noncontrolling interest

   $6.4M    $16.3M    Fewer deliveries due to timing of railcar syndication activity of GIMSA produced railcars

Adjusted net earnings attributable to Greenbrier

   $15.3M(1)    $9.9M(2)    Reduced revenue, deliveries and operating margin offset by net earnings attributable to noncontrolling interest due to timing of railcar syndication activity

Adjusted diluted EPS

   $0.46(1)    $0.30(2)   

 

(1) 

Excludes expense of $1.7 million ($0.05 per share), net of tax, associated with ARI integration related expenses.

(2) 

Excludes expense of $2.2 million ($0.07 per share), net of tax, associated with ARI integration related expenses.

 

-More-


Greenbrier Reports Second Quarter Results (Cont.)   Page 4

 

Segment Summary

 

     Q2 FY20    Q1 FY20   

Sequential Comparison – Main Drivers

Manufacturing

Revenue    $489.9M    $657.4M    Fewer deliveries due to lower production rates and timing of syndication activity
Gross margin    13.8%    11.5%    Improved product mix and customer payment related to contract modification; Excluding contract modification payment gross margin would be 11.5%
Operating margin (1)    9.4%    8.1%   
Deliveries (2)    3,700    5,900    Timing of production into syndication model
Wheels, Repair & Parts
Revenue    $91.2M    $86.6M    Higher wheelset volume due to winter seasonality
Gross margin    7.5%    5.4%    Improved profitability from wheel volumes and repair network operational improvements
Operating margin (1)    3.6%    1.3%   
Leasing & Services
Revenue    $42.7M    $25.4M    Increase reflects higher volume of externally sourced railcar syndications
Gross margin    27.8%    47.3%    Lower margins on externally sourced railcar syndications; Excluding this activity, gross margin would be 47.2%
Operating margin (1) (3)    30.0%    38.5%   

 

(1) 

See supplemental segment information on page 11 for additional information.

(2) 

Excludes Brazil deliveries which are not consolidated into manufacturing revenue and margins.

(3) 

Includes Net gain on disposition of equipment, which is excluded from gross margin.

Conference Call

Greenbrier will host a teleconference to discuss its second quarter 2020 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. Teleconference details are as follows:

 

   

April 7, 2020

 

   

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 10,300 railcars and performs management services for 389,000 railcars. Learn more about Greenbrier at www.gbrx.com.

 

 

-More-


Greenbrier Reports Second Quarter Results (Cont.)   Page 5

 

THE GREENBRIER COMPANIES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, unaudited)

 

     February 29,
2020
     November 30,
2019
     August 31,
2019
     May 31,
2019
     February 28,
2019
 

Assets

              

Cash and cash equivalents

   $ 169,899      $ 253,602      $ 329,684      $ 359,625      $ 341,500  

Restricted cash

     8,569        8,648        8,803        21,471        21,584  

Accounts receivable, net

     326,229        313,786        373,383        330,385        335,732  

Inventories

     709,115        733,806        664,693        592,099        574,146  

Leased railcars for syndication

     255,073        135,319        182,269        130,489        163,472  

Equipment on operating leases, net

     385,974        396,187        366,688        376,241        381,336  

Property, plant and equipment, net

     723,326        730,730        717,973        478,502        472,739  

Investment in unconsolidated affiliates

     79,082        85,141        91,818        53,036        58,685  

Intangibles and other assets, net

     160,709        162,089        125,379        97,022        101,284  

Goodwill

     129,684        129,468        129,947        74,318        82,743  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   $ 2,947,660      $ 2,948,776      $ 2,990,637      $ 2,513,188      $ 2,533,221  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities and Equity

              

Revolving notes

   $ 37,196      $ 29,502      $ 27,115      $ 25,952      $ 22,323  

Accounts payable and accrued liabilities

     499,898        527,789        568,360        473,106        474,863  

Deferred income taxes

     9,173        9,417        13,946        12,089        29,481  

Deferred revenue

     70,869        59,657        85,070        76,170        91,533  

Notes payable, net

     811,860        817,830        822,885        483,918        486,107  

Contingently redeemable noncontrolling interest

     30,782        31,723        31,564        24,722        25,637  

Total equity - Greenbrier

     1,286,472        1,281,808        1,276,730        1,262,315        1,257,818  

Noncontrolling interest

     201,410        191,050        164,967        154,916        145,459  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total equity

     1,487,882        1,472,858        1,441,697        1,417,231        1,403,277  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   $ 2,947,660      $ 2,948,776      $ 2,990,637      $ 2,513,188      $ 2,533,221  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

-More-


Greenbrier Reports Second Quarter Results (Cont.)   Page 6

 

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,     February 28,  
     2020     2019     2020     2019  

Revenue

        

Manufacturing

   $ 489,943     $ 476,019     $ 1,147,310     $ 947,808  

Wheels, Repair & Parts

     91,225       125,278       177,833       233,821  

Leasing & Services

     42,680       57,374       68,064       81,565  
  

 

 

   

 

 

   

 

 

   

 

 

 
     623,848       658,671       1,393,207       1,263,194  

Cost of revenue

        

Manufacturing

     422,309       442,996       1,004,221       860,801  

Wheels, Repair & Parts

     84,373       118,455       166,265       219,433  

Leasing & Services

     30,830       43,376       44,196       56,583  
  

 

 

   

 

 

   

 

 

   

 

 

 
     537,512       604,827       1,214,682       1,136,817  

Margin

     86,336       53,844       178,525       126,377  

Selling and administrative expense

     54,597       47,892       108,961       98,324  

Net gain on disposition of equipment

     (6,697     (12,102     (10,656     (26,455
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings from operations

     38,436       18,054       80,220       54,508  

Other costs

        

Interest and foreign exchange

     12,609       9,237       25,461       13,641  
  

 

 

   

 

 

   

 

 

   

 

 

 

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

     25,827       8,817       54,759       40,867  

Income tax expense

     (7,463     (2,248     (13,457     (11,383
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings before earnings (loss) from unconsolidated affiliates

     18,364       6,569       41,302       29,484  

Earnings (loss) from unconsolidated affiliates

     1,651       (786     2,724       (319
  

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings

     20,015       5,783       44,026       29,165  

Net earnings attributable to noncontrolling interest

     (6,386     (3,018     (22,728     (8,444
  

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings attributable to Greenbrier

   $ 13,629     $ 2,765     $ 21,298     $ 20,721  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per common share:

   $ 0.42     $ 0.08     $ 0.65     $ 0.63  

Diluted earnings per common share:

   $ 0.41     $ 0.08     $ 0.64     $ 0.63  

Weighted average common shares:

        

Basic

     32,661       32,628       32,645       32,634  

Diluted

     33,482       33,206       33,382       33,149  

Dividends declared per common share

   $ 0.27     $ 0.25     $ 0.52     $ 0.50  

 

-More-


Greenbrier Reports Second Quarter Results (Cont.)   Page 7

 

THE GREENBRIER COMPANIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, unaudited)

 

     Six Months Ended  
     February 29,     February 28,  
     2020     2019  

Cash flows from operating activities

    

Net earnings

   $ 44,026     $ 29,165  

Adjustments to reconcile net earnings to net cash used in operating activities:

    

Deferred income taxes

     (6,714     (3,405

Depreciation and amortization

     59,338       40,815  

Net gain on disposition of equipment

     (10,656     (26,455

Accretion of debt discount

     2,718       2,165  

Stock based compensation expense

     7,237       7,311  

Noncontrolling interest adjustments

     9,038       5,306  

Other

     (39     1,809  

Decrease (increase) in assets:

    

Accounts receivable, net

     46,109       23,298  

Inventories

     (55,158     (154,388

Leased railcars for syndication

     (123,033     (76,386

Other

     (39,433     (11,274

Increase (decrease) in liabilities:

    

Accounts payable and accrued liabilities

     (67,988     28,458  

Deferred revenue

     1,381       (13,041
  

 

 

   

 

 

 

Net cash used in operating activities

     (133,174     (146,622
  

 

 

   

 

 

 

Cash flows from investing activities

    

Proceeds from sales of assets

     41,827       63,879  

Capital expenditures

     (40,834     (98,176

Investment in and advances to unconsolidated affiliates

     (1,500     (11,393

Cash distribution from unconsolidated affiliates and other

     11,273       1,986  
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     10,766       (43,704
  

 

 

   

 

 

 

Cash flows from financing activities

    

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

     10,246       (6,007

Proceeds from issuance of notes payable

     —         225,000  

Repayments of notes payable

     (17,120     (176,641

Debt issuance costs

     —         (2,770

Dividends

     (17,312     (16,651

Cash distribution to joint venture partner

     (8,706     (5,058

Tax payments for net share settlement of restricted stock

     (1,895     (4,762
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (34,787     13,111  
  

 

 

   

 

 

 

Effect of exchange rate changes

     (2,824     825  

Decrease in cash, cash equivalents and restricted cash

     (160,019     (176,390

Cash and cash equivalents and restricted cash

    

Beginning of period

     338,487       539,474  
  

 

 

   

 

 

 

End of period

   $ 178,468     $ 363,084  
  

 

 

   

 

 

 

Balance Sheet Reconciliation

    

Cash and cash equivalents

   $ 169,899     $ 341,500  

Restricted cash

     8,569       21,584  
  

 

 

   

 

 

 

Total cash and cash equivalents and restricted cash as presented above

   $ 178,468     $ 363,084  
  

 

 

   

 

 

 

 

-More-


Greenbrier Reports Second Quarter Results (Cont.)   Page 8

 

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,
2020
     November 30,
2019
 

Net earnings

   $ 20,015      $ 24,011  

Interest and foreign exchange

     12,609        12,852  

Income tax expense

     7,463        5,994  

Depreciation and amortization

     30,003        29,335  

ARI integration related costs

     1,535        1,991  
  

 

 

    

 

 

 

Adjusted EBITDA

   $ 71,625      $ 74,183  
  

 

 

    

 

 

 

 

     Three Months
Ended
 
     February 29,
2020
 

Backlog Activity (units) (1)

  

Beginning backlog

     28,500  

Orders received

     8,500  

Contract modification

     (575

Production held as Leased railcars for syndication

     (1,600

Production sold directly to third parties

     (4,025
  

 

 

 

Ending backlog

     30,800  
  

 

 

 

Delivery Information (units) (1)

  

Production sold directly to third parties

     4,025  

Sales of Leased railcars for syndication

     475  
  

 

 

 

Total deliveries

     4,500  
  

 

 

 

 

(1) 

Includes Greenbrier-Maxion, our Brazilian railcar manufacturer, which is accounted for under the equity method

 

-More-


Greenbrier Reports Second Quarter Results (Cont.)   Page 9

 

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

(In thousands, except per share amounts, unaudited)

Operating Results by Quarter for 2020 are as follows:

 

     First      Second      Total  

Revenue

        

Manufacturing

   $ 657,367      $ 489,943      $ 1,147,310  

Wheels, Repair & Parts

     86,608        91,225        177,833  

Leasing & Services

     25,384        42,680        68,064  
  

 

 

    

 

 

    

 

 

 
     769,359        623,848        1,393,207  

Cost of revenue

        

Manufacturing

     581,912        422,309        1,004,221  

Wheels, Repair & Parts

     81,892        84,373        166,265  

Leasing & Services

     13,366        30,830        44,196  
  

 

 

    

 

 

    

 

 

 
     677,170        537,512        1,214,682  

Margin

     92,189        86,336        178,525  

Selling and administrative expense

     54,364        54,597        108,961  

Net gain on disposition of equipment

     (3,959      (6,697      (10,656
  

 

 

    

 

 

    

 

 

 

Earnings from operations

     41,784        38,436        80,220  

Other costs

        

Interest and foreign exchange

     12,852        12,609        25,461  
  

 

 

    

 

 

    

 

 

 

Earnings before income tax and earnings from unconsolidated affiliates

     28,932        25,827        54,759  

Income tax expense

     (5,994      (7,463      (13,457
  

 

 

    

 

 

    

 

 

 

Earnings before earnings from unconsolidated affiliates

     22,938        18,364        41,302  

Earnings from unconsolidated affiliates

     1,073        1,651        2,724  
  

 

 

    

 

 

    

 

 

 

Net earnings

     24,011        20,015        44,026  

Net earnings attributable to noncontrolling interest

     (16,342      (6,386      (22,728
  

 

 

    

 

 

    

 

 

 

Net earnings attributable to Greenbrier

   $ 7,669      $ 13,629      $ 21,298  
  

 

 

    

 

 

    

 

 

 

Basic earnings per common share (1)

   $ 0.24      $ 0.42      $ 0.65  

Diluted earnings per common share (1)

   $ 0.23      $ 0.41      $ 0.64  

Dividends declared per common share

   $ 0.25      $ 0.27      $ 0.52  

 

(1) 

Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated by including the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved.

 

-More-


Greenbrier Reports Second Quarter Results (Cont.)   Page 10

 

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

(In thousands, except per share amounts, unaudited)

Operating Results by Quarter for 2019 are as follows:

 

     First     Second     Third     Fourth     Total  

Revenue

          

Manufacturing

   $ 471,789     $ 476,019     $ 681,588     $ 802,103     $ 2,431,499  

Wheels, Repair & Parts

     108,543       125,278       124,980       85,701       444,502  

Leasing & Services

     24,191       57,374       49,584       26,441       157,590  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     604,523       658,671       856,152       914,245       3,033,591  

Cost of revenue

          

Manufacturing

     417,805       442,996       590,788       686,036       2,137,625  

Wheels, Repair & Parts

     100,978       118,455       119,821       81,636       420,890  

Leasing & Services

     13,207       43,376       38,971       13,036       108,590  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     531,990       604,827       749,580       780,708       2,667,105  

Margin

     72,533       53,844       106,572       133,537       366,486  

Selling and administrative expense

     50,432       47,892       54,377       60,607       213,308  

Net gain on disposition of equipment

     (14,353     (12,102     (11,019     (3,489     (40,963

Goodwill impairment

     —         —         10,025       —         10,025  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings from operations

     36,454       18,054       53,189       76,419       184,116  

Other costs

          

Interest and foreign exchange

     4,404       9,237       9,770       7,501       30,912  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     32,050       8,817       43,419       68,918       153,204  

Income tax expense

     (9,135     (2,248     (13,008     (17,197     (41,588
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings before earnings (loss) from unconsolidated affiliates

     22,915       6,569       30,411       51,721       111,616  

Earnings (loss) from unconsolidated affiliates

     467       (786     (4,564     (922     (5,805
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings

     23,382       5,783       25,847       50,799       105,811  

Net earnings attributable to noncontrolling interest

     (5,426     (3,018     (10,599     (15,692     (34,735
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings attributable to Greenbrier

   $ 17,956     $ 2,765     $ 15,248     $ 35,107     $ 71,076  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per common share (1)

   $ 0.55     $ 0.08     $ 0.47     $ 1.08     $ 2.18  

Diluted earnings per common share (1)

   $ 0.54     $ 0.08     $ 0.46     $ 1.06     $ 2.14  

Dividends declared per common share

   $ 0.25     $ 0.25     $ 0.25     $ 0.25     $ 1.00  

 

(1) 

Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated by including the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved.

 

-More-


Greenbrier Reports Second Quarter Results (Cont.)   Page 11

 

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

(In thousands, unaudited)

Segment Information

Three months ended February 29, 2020:

 

     Revenue     Earnings (loss) from operations  
     External      Intersegment     Total     External     Intersegment     Total  

Manufacturing

   $ 489,943      $ 21     $ 489,964     $ 46,105     $ 1     $ 46,106  

Wheels, Repair & Parts

     91,225        5,133       96,358       3,320       (168     3,152  

Leasing & Services

     42,680        15,240       57,920       12,793       14,384       27,177  

Eliminations

     —          (20,394     (20,394     —         (14,217     (14,217

Corporate

     —          —         —         (23,782     —         (23,782
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   $ 623,848      $ —       $ 623,848     $ 38,436     $ —       $ 38,436  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Three months ended November 30, 2019:

 

     Revenue     Earnings (loss) from operations  
     External      Intersegment     Total     External     Intersegment     Total  

Manufacturing

   $ 657,367      $ 97     $ 657,464     $ 53,143     $ (23   $ 53,120  

Wheels, Repair & Parts

     86,608        5,851       92,459       1,114       (342     772  

Leasing & Services

     25,384        1,749       27,133       9,777       1,289       11,066  

Eliminations

     —          (7,697     (7,697     —         (924     (924

Corporate

     —          —         —         (22,250     —         (22,250
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   $ 769,359      $ —       $ 769,359     $ 41,784     $ —       $ 41,784  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     Total assets  
     February 29,
2020
     November 30,
2019
 

Manufacturing

   $ 1,535,118      $ 1,568,338  

Wheels, Repair & Parts

     314,069        317,786  

Leasing & Services

     897,745        776,724  

Unallocated

     200,728        285,928  
  

 

 

    

 

 

 
   $ 2,947,660      $ 2,948,776  
  

 

 

    

 

 

 

 

-More-


Greenbrier Reports Second Quarter Results (Cont.)   Page 12

 

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

(In thousands, except per share amounts, unaudited)

Reconciliation of common shares outstanding

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,
2020
     November 30,
2019
 

Weighted average basic common shares outstanding (1)

     32,661        32,629  

Dilutive effect of convertible notes (2)

     —          —    

Dilutive effect of restricted stock units (3)

     821        655  
  

 

 

    

 

 

 

Weighted average diluted common shares outstanding

     33,482        33,284  
  

 

 

    

 

 

 

 

(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 2.875% Convertible notes issued in February 2017 and the 2.25% Convertible notes issued in July 2019 were excluded for the periods in which they were outstanding as the average stock price was less than the applicable conversion price and therefore was anti-dilutive.

(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 common shares outstanding when the Company is in a net earnings position.

Reconciliation of Net earnings attributable to Greenbrier to Adjusted net earnings attributable to Greenbrier

 

     Three Months Ended  
     February 29,
2020
     November 30,
2019
 

Net earnings attributable to Greenbrier

   $ 13,629      $ 7,669  

ARI integration related costs, net of tax

     1,665        2,218  
  

 

 

    

 

 

 

Adjusted net earnings attributable to Greenbrier

   $ 15,294      $ 9,887  
  

 

 

    

 

 

 

Reconciliation of Diluted earnings per share to Adjusted diluted earnings per share

 

     Three Months Ended  
     February 29,
2020
     November 30,
2019
 

Diluted earnings per share

   $ 0.41      $ 0.23  

ARI integration related costs, net of tax

     0.05        0.07  
  

 

 

    

 

 

 

Adjusted diluted earnings per share

   $ 0.46      $ 0.30  
  

 

 

    

 

 

 

 

-More-


Greenbrier Reports Second Quarter Results (Cont.)   Page 13

 

“SAFE HARBOR” STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This press release may contain forward-looking statements, including any statements that are not purely statements of historical fact. Greenbrier uses words, and variations of words, such as “aim”, “allow,” “believe,” “can,” “ensure,” “estimates,” “has eliminated,” “maintain,” “may,” “normalize,” “plans,” “potential,” “preserving,” “reducing,” “seeks,” “should,” “target,” “targeting,” “typically,” “will,” “may,” “can,” “will generate” and similar expressions to identify forward-looking statements. These forward-looking statements include, without limitation, statements about future liquidity; savings generated by reducing capital expenditures, SG&A, overhead, other expenses; targeting available capital; as well as other information regarding future performance and strategies and appear throughout this press release including in the headlines and the sections “Second Quarter Highlights” and “Business Update.” These forward-looking statements are not guarantees of future performance and are subject to certain risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements.

Factors that might cause such a difference include, but are not limited to, the COVID-19 coronavirus pandemic and the governmental reaction to COVID-19 having a materially negative impact on our business, liquidity and financial position, results of operations, stock price, and our ability to convert backlog to revenue; our inability to increase our liquidity and borrowing base as we anticipate or being delayed in doing so; oil prices remaining materially lower than recent historical prices; inability to implement cost savings in the amounts or timelines that we have planned; the cyclical nature of our business, economic downturns and a rising interest rate environment; changes in our product mix due to shifts in demand or fluctuations in commodity and energy prices; a decline in performance or demand of the rail freight industry; an oversupply or increase in efficiency in the rail freight industry; difficulty integrating acquired businesses or joint ventures; inability to convert backlog to future revenues; risks related to our operations outside of the U.S., including anti-bribery violations; governmental policy changes impacting international trade and corporate tax; the loss of or reduction of business from one or more of our limited number of customers; inability to lease railcars at satisfactory rates, or realize expected residual values on sale of railcars at the end of a lease; shortages of skilled labor, increased labor costs, or failure to maintain good relations with our workforce; equipment failures, technological failures, costs and inefficiencies associated with changing of production lines, or transfer of production between facilities; inability to compete successfully; suitable joint ventures, acquisition opportunities and new business endeavors may not be identified or concluded; inability to complete capital expenditure projects efficiently, or to cause capital expenditure projects to operate as anticipated; inability to design or manufacture products or technologies, or to achieve timely certification or market acceptance of new products or technologies; unsuccessful relationships with our joint venture partners; environmental liabilities, including the Portland Harbor Superfund Site; the timing of our asset sales and related revenue recognition may result in comparisons between fiscal periods not being accurate indicators of future performance; attrition within our management team or unsuccessful succession planning for members of our senior management team and other key employees who are at or nearing retirement age; changes in the credit markets and the financial services industry; volatility in the global financial markets; our actual results differing from our announced expectations; fluctuations in the availability and price of energy, freight transportation, steel and other raw materials; inability to procure specialty components or services on commercially reasonable terms or on a timely basis from a limited number of suppliers; our existing indebtedness may limit our ability to borrow additional amounts in the future, may expose us to increasing interest rates, and may expose us to a material adverse effect on our business if we are unable to service our debt or obtain additional financing; train derailments or other accidents or claims; changes in or failure to comply with legal and regulatory requirements; an adverse outcome in any pending or future litigation or investigation; potential misconduct by employees; labor strikes or work stoppages; the volatility of our stock price; dilution to investors resulting from raising additional capital or due to other reasons; product and service warranty claims; misuse of our products by third parties; write-downs of goodwill or intangibles in future periods; conversion at our option of our outstanding convertible notes resulting in dilution to our then-current stockholders; as a holding company with no operations, our reliance on our subsidiaries and joint ventures and their ability to make distributions to us; our governing documents, the terms of our convertible notes, and Oregon law could make a change of control or acquisition of our business by a third party difficult; the discretion of our Board of Directors to pay or not pay dividends on our common stock; fluctuations in foreign currency exchange rates; inability to raise additional capital to operate our business and achieve our business objectives; shareholder activism could cause us to incur significance expense, impact our stock price, and hinder execution of our business strategy; cybersecurity risks; updates or changes to our information technology systems resulting in problems; inability to

 

-More-


Greenbrier Reports Second Quarter Results (Cont.)   Page 14

 

protect our intellectual property and prevent its improper use by third parties; claims by third parties that our products or services infringe their intellectual property rights; liability for physical damage, business interruption or product liability claims that exceed our insurance coverage; inability to procure adequate insurance on a cost-effective basis; changes in accounting standards or inaccurate estimates or assumptions in the application of accounting policies; fires, natural disasters, severe weather conditions or public health crises; unusual weather conditions which reduce demand for our wheel-related parts and repair services; business, regulatory, and legal developments regarding climate change which may affect the demand for our products or the ability of our critical suppliers to meet our needs; repercussions from terrorist activities or armed conflict; unanticipated changes in our tax provisions or exposure to additional income tax liabilities; the inability of certain of our customers to utilize tax benefits or tax credits; and suspension or termination of our share repurchase program. More information on these risks and other potential factors that could cause our results to differ from our forward-looking statements is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and subsequent Form 10-Q filings. Except as otherwise required by law, the Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s opinions only as of the date hereof.

Adjusted Financial Metric Definitions

Adjusted EBITDA, Adjusted net earnings attributable to Greenbrier and Adjusted diluted EPS are not financial measures under generally accepted accounting principles (GAAP). These metrics are performance measurement tools used by rail supply companies and Greenbrier. You should not consider these metrics in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because these metrics are not a measure of financial performance under GAAP and are susceptible to varying calculations, the measures presented may differ from and may not be comparable to similarly titled measures used by other companies.

We define Adjusted EBITDA as Net earnings before Interest and foreign exchange, Income tax expense, Depreciation and amortization and excluding the impact associated with items we do not believe are indicative of our core business or which affect comparability. We believe the presentation of Adjusted EBITDA provides useful information as it excludes the impact of financing, foreign exchange, income taxes and the accounting effects of capital spending. These items may vary for different companies for reasons unrelated to the overall operating performance of a company’s core business. We believe this assists in comparing our performance across reporting periods.

Adjusted net earnings 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.

 

###

View differences made from one to another to evaluate Greenbrier Companies Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Greenbrier Companies Inc.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account