Greenbrier Slips Post Q4 Results, Names Lorie Tekorius As Next CEO

Greenbrier Slips Post Q4 Results, Names Lorie Tekorius As Next CEO
  • Greenbrier Companies Inc GBX reported a fourth-quarter revenue decline by 5.8% year-over-year to $599.23 million, missing the consensus of $610.37 million.
  • Adjusted EPS of $0.98 beat the consensus of $0.74.
  • For the quarter, the company reported New railcar orders of 6,700 units valued at $665 million and deliveries of 4,500 units, resulting in a 1.5x book-to-bill.
  • The gross margin expanded by 584 bps to 16.4%, and the operating margin expanded by 383 bps to 7.2%.
  • As of August 31, 2021, the Diversified new railcar backlog was 26,600 units with an estimated value of $2.8 billion.
  • At the end of the quarter, liquidity stood at $835 million, including $647 million in cash and $188 million available borrowing capacity. Q4 Operating cash flow exceeded $80 million.
  • EBITDA increased 33.3% sequentially to $70.42 million, and the margin for the quarter was 11.7%.
  • Separately, the company announced the appointment of Lorie Tekorius as the next CEO and President, effective March 1, 2022. Bill Furman will step into the newly created Executive Chair position on the same date, and as earlier announced, will retire in September 2022.
  • Greenbrier, based on current trends and production schedules, expects Deliveries of 16,000 – 18,000 units; Selling & administrative expenses to be $200 million - $210 million; and Capital expenditures of $275 million in Leasing & Service, $55 million in Manufacturing and $10 million in Wheels, Repair & Parts.
  • Price Action: GBX shares are trading lower by 7.05% at $43.37 on the last check Tuesday.

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