Greenbrier Reports Fourth Quarter and Fiscal Year Results

Loading...
Loading...

LAKE OSWEGO, Ore., Oct. 26, 2021 /PRNewswire/ -- The Greenbrier Companies, Inc. GBX ("Greenbrier"), a leading international supplier of equipment and services to global freight transportation markets, today reported financial results for its fourth fiscal quarter and year ended August 31, 2021.

Today, Greenbrier separately announced the appointment of Lorie Tekorius as the Company's next CEO and President, effective March 1, 2022.  Bill Furman will step into the newly created position of Executive Chair on the same date, and as earlier announced, will retire in September 2022, while remaining a member of the Board of Directors into 2024.

Fourth Quarter Highlights

  • New railcar orders for 6,700 units valued at $665 million and deliveries of 4,500 units, resulted in a 1.5x book-to-bill, the third consecutive quarter with a book-to-bill over 1.0x.
  • Diversified new railcar backlog as of August 31, 2021 was 26,600 units with an estimated value of $2.8 billion.
  • Ended the quarter with liquidity of $835 million, including $647 million in cash and $188 million of available borrowing capacity.
  • Operating cash flow exceeded $80 million.
  • Net earnings attributable to Greenbrier for the quarter were $32 million, or $0.95 per diluted share, on revenue of nearly $600 million.  Net earnings included $1.2 million ($0.03 per share), of loss on extinguishment of debt, net of tax.
  • Adjusted net earnings attributable to Greenbrier were $33 million, or $0.98 per diluted share, and EBITDA for the quarter was $70 million.
  • Contributed nearly $70 million of assets into GBX Leasing. GBX Leasing is funded with a combination of equity and non-recourse debt. It is consolidated in Greenbrier's financial statements; see supplemental information in this release.
  • Board declares a quarterly dividend of $0.27 per share, payable on December 2, 2021 to shareholders of record as of November 11, 2021 representing Greenbrier's 30th consecutive quarterly dividend.

Fiscal Year 2021 Highlights

  • Diversified new railcar orders of 17,200 units valued at $1.8 billion and deliveries of 13,000 units resulted in 1.3x book-to-bill.
  • COVID-19 related expenses for the year totaled nearly $10 million (pre-tax).
  • Net earnings attributable to Greenbrier for the year were $32 million, or $0.96 per diluted share, on revenue of $1.7 billion.  Net earnings included $5 million ($0.14 per share), of loss on extinguishment of debt, net of tax, associated with refinancing of the Company's debt.
  • Completed nearly $1.5 billion of debt refinancing effectively doubling the maturity profile of Greenbrier's debt.
  • Adjusted net earnings attributable to Greenbrier were $37 million, or $1.10 per diluted share, excluding the loss on extinguishment of debt.
  • GBX Leasing was formed in April 2021 to create stable, tax-advantaged cash flows.  Nearly $200 million of railcars were contributed in fiscal 2021 which were levered 3:1 utilizing a $300 million non-recourse warehouse credit facility secured at formation.  Subsequent to year end, Greenbrier acquired a portfolio of 3,600 railcars, accelerating its enhanced railcar leasing strategy.
  • Under a provision of the CARES Act, Greenbrier invested in our lease fleets which created net operating losses for tax purposes that were carried back to prior years with higher federal tax rates.  This activity resulted in tax benefits that generated $1.09 per diluted share of earnings over the course of fiscal 2021.
  • EBITDA was $145 million, or 8.3% of revenue.

William A. Furman, Chairman & CEO commented, "Greenbrier continued to build momentum during our fourth fiscal quarter as the recovery in the North American railcar market progresses.  We achieved our fifth sequential quarterly increase in new orders during the quarter with new orders totaling 6,700 units valued at $665 million.  Greenbrier also completed a comprehensive $1.5 billion refinancing plan that extended maturities into 2026 and beyond.  Combined with the $300 million GBX Leasing warehouse credit facility, Greenbrier completed $1.8 billion of financings in fiscal 2021.  Our strong financial position and $2.8 billion backlog supports Greenbrier's proven ability to adjust production capacity in response to growing demand.  It also uniquely positions Greenbrier to participate meaningfully in the post-pandemic recovery. Momentum continues to build in our international markets with approximately 30% of our backlog for delivery in Europe and Brazil."

Furman added, "Our strategic focus remains unchanged as we enter fiscal 2022, particularly given challenges brought about by inflationary pressures, labor shortages and supply chain issues.  The market recovery will not be linear, and for this reason, we are pleased to have recently increased the scale of our lease fleet through our GBX Leasing joint venture.  Our lease fleet investment provides Greenbrier tax-advantaged cash flows and reduces our exposure to the inherent cyclicality of freight transportation equipment manufacturing.  All factors considered, Greenbrier is extremely well-positioned to continue to grow and deliver value to our shareholders."

Business Update & Outlook

Greenbrier's strategy during the fourth fiscal quarter produced strong operating performance while balancing economic and labor volatility. Since March 2020, Greenbrier has practiced disciplined management to meet the challenges created by the COVID-19 pandemic.  Greenbrier's near-term strategic focus continues to be:

  1. Maintain a strong liquidity base and balance sheet.
  2. Navigate the COVID-19 pandemic and economic crisis by safely operating our factories while generating cash.
  3. Prepare for economic recovery and forward momentum in our markets. Greenbrier is well-positioned to navigate the challenges of increasing production rates safely, while ensuring labor and supply chain continuity.

Based on current trends and production schedules, Greenbrier expects:

  • Deliveries will be 16,000 – 18,000 units including approximately 1,500 units in Greenbrier-Maxion (Brazil).
  • Selling & administrative expense to be $200 - $210 million.
  • Capital expenditures will consist of $275 million in Leasing & Service, $55 million in Manufacturing and $10 million in Wheels, Repair & Parts.

We will provide additional operating color during the earnings call.

Financial Summary


Q4 FY21

Q3 FY21

Sequential Comparison - Main Drivers

Revenue

$599.2M

$450.1M

46% higher deliveries reflecting increased production levels and syndication activity

Gross margin

16.4%

16.7%

Strong operating performance reflects increased production rates and syndication activity in Manufacturing, and lease modification fees while the prior quarter benefited from favorable international warranty resolution

Selling and administrative

$55.4M

$49.2M

Increased employee-related costs including performance-based compensation expense

EBITDA

$70.4M

$52.9M

Higher operating earnings reflecting increased deliveries; See reconciliation on page 12

Net earnings attributable to noncontrolling interest

($3.9M)

($0.3M)

Increased operating activity at GIMSA joint venture

Adjusted net earnings attributable to Greenbrier

$32.9M(1)

$23.3M(2)

Primarily from increased deliveries and tax benefit from the CARES Act

Adjusted diluted EPS

$0.98(1)

$0.69(2)




(1)

Excludes $1.2 million ($0.03 per share), net of tax, of loss on debt extinguishment.

(2)

Excludes $3.6 million ($0.10 per share), net of tax, of loss on debt extinguishment.


 

Segment Summary


Q4 FY21

Q3 FY21

Sequential Comparison – Main Drivers

Manufacturing

  Revenue

$477.2M

$341.9M

Higher deliveries including increased syndication activity

  Gross margin

13.2%

14.5%

Strong operating performance and increased syndication activity while prior quarter benefited from a favorable warranty resolution

  Operating margin (1)

9.1%

9.2%


  Deliveries (2)

4,100

2,800

Higher production rates and increased syndication activity

Wheels, Repair & Parts

  Revenue

$80.3M

$80.9M

Lower volumes partially offset by higher scrap revenue 

  Gross margin

4.0%

8.9%

Repair operations negatively impacted by labor shortages and inventory adjustments

  Operating margin (1)

0.1%

5.2%


Leasing & Services (including GBX Leasing)

  Revenue

$41.7M

$27.3M

Revenue and margin reflect higher interim rent and the benefit of lease modification fees

  Gross margin

76.2%

67.6%

  Operating margin (1) (3)

61.0%

44.9%

  Fleet utilization

94.1%

93.8%




(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 loss (gain) on disposition of equipment, which is excluded from gross margin. 

Conference Call

Greenbrier will host a teleconference to discuss its fourth quarter 2021 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. 
Teleconference details are as follows:

  • October 26, 2021
  • 8:00 a.m. Pacific Daylight Time
  • Phone: 1-888-317-6003 (Toll Free) 1-412-317-6061 (International), Entry Number "1560183"
  • Real-time Audio Access:  ("Newsroom" at http://www.gbrx.com)

Please access the site 10-15 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. Through its wholly-owned subsidiaries and joint ventures, Greenbrier designs, builds and markets freight railcars and marine barges in North America, Europe and Brazil. We are a leading provider of freight railcar wheel services, parts, maintenance and retrofitting services in North America through our rail services business unit. Greenbrier manages 444,000 railcars and offers railcar management, regulatory compliance services and leasing services to railroads and other railcars owners in North America. GBX Leasing (GBXL) is a special purpose subsidiary that owns and manages a portfolio of leased railcars that originate primarily from Greenbrier's manufacturing operations. As of September 30, 2021, GBXL and Greenbrier own a lease fleet of nearly 12,500 railcars.  Learn more about Greenbrier at www.gbrx.com.

THE GREENBRIER COMPANIES, INC.

Consolidated Balance Sheets

(In thousands, unaudited)



August 31,

2021

May 31,

2021

February 28,
2021

November 30,
2020

August 31,

2020

Assets






   Cash and cash equivalents

$       646,769

$       628,200

$       593,499

$       724,547

$       833,745

   Restricted cash

24,627

8,689

8,614

8,547

8,342

   Accounts receivable, net 

306,407

274,792

236,171

216,220

230,488

   Income tax receivable   

112,135

75,135

62,103

24,448

9,109

   Inventories

573,594

553,137

522,984

490,282

529,529

   Leased railcars for syndication

51,647

154,017

109,287

51,087

107,671

   Equipment on operating leases, net

609,812

446,888

445,451

445,542

350,442

   Property, plant and equipment, net

670,221

676,010

687,468

696,333

711,524

   Investment in unconsolidated affiliates

79,898

79,420

70,820

72,254

72,354

   Intangibles and other assets, net

183,448

180,829

190,283

186,509

190,322

   Goodwill

132,110

133,050

132,685

130,315

130,308


$   3,390,668

$   3,210,167

$   3,059,365

$   3,046,084

$   3,173,834







Liabilities and Equity






   Revolving notes

$       372,176

$       325,150

$       275,839

$       276,248

$       351,526

   Accounts payable and accrued liabilities

569,805

480,373

448,571

434,138

463,880

   Deferred income taxes

73,249

44,900

24,798

10,120

7,701

   Deferred revenue

42,797

43,676

42,572

36,916

42,467

   Notes payable, net

826,506

835,027

793,189

797,089

804,088







Contingently redeemable noncontrolling interest

29,708

30,323

30,037

30,711

31,117







   Total equity – Greenbrier

1,307,748

1,286,763

1,268,502

1,280,407

1,293,043

   Noncontrolling interest

168,679

163,955

175,857

180,455

180,012

   Total equity

1,476,427

1,450,718

1,444,359

1,460,862

1,473,055


$   3,390,668

$   3,210,167

$   3,059,365

$   3,046,084

$   3,173,834

 

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Income

(In thousands, except per share amounts, unaudited)



Years Ended

August 31,


2021


2020


2019


Revenue








        Manufacturing

$     1,329,987


$     2,349,971


$     2,431,499



        Wheels, Repair & Parts

298,330


324,670


444,502



        Leasing & Services

119,664


117,548


157,590




1,747,981


2,792,189


3,033,591



Cost of revenue








        Manufacturing

1,189,246


2,065,169


2,137,625



        Wheels, Repair & Parts

280,391


302,189


420,890



        Leasing & Services

46,737


71,700


108,590




1,516,374


2,439,058


2,667,105











Margin

231,607


353,131


366,486











Selling and administrative expense

191,813


204,706


213,308



Net gain on disposition of equipment

(1,176)


(20,004)


(40,963)



Goodwill impairment

-


-


10,025



Earnings from operations

40,970


168,429


184,116











Other costs








Interest and foreign exchange

43,263


43,619


30,912



Net loss on extinguishment of debt

6,287


-


-



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

(8,580)


124,810


153,204



Income tax benefit (expense)

40,223


(40,184)


(41,588)



Earnings before earnings (loss) from 

   unconsolidated affiliates

31,643


84,626


111,616



Earnings (loss) from unconsolidated affiliates

3,491


2,960


(5,805)











Net earnings

35,134


87,586


105,811



Net earnings attributable to noncontrolling interest

(2,657)


(38,619)


(34,735)











Net earnings attributable to Greenbrier

$          32,477


$          48,967


$          71,076











Basic earnings per common share:

$              0.99


$              1.50


$              2.18











Diluted earnings per common share:

$              0.96


$              1.46


$              2.14











Weighted average common shares:








Basic

32,648


32,670


32,615



Diluted

33,665


33,441


33,165











Dividends per common share

$               1.08


$              1.06


$              1.00











Loading...
Loading...

 

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Cash Flows

(In thousands, unaudited) 



 Years Ended
August 31,


Cash flows from operating activities

2021


2020


2019


    Net earnings

$        35,134


$        87,586


$     105,811


Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:







      Deferred income taxes

51,100


(9,489)


(20,225)


      Depreciation and amortization

100,717


109,850


83,731


      Net gain on disposition of equipment

(1,176)


(20,004)


(40,963)


      Accretion of debt discount

7,075


5,504


4,458


      Stock based compensation expense

14,704


8,997


11,153


     Net loss on extinguishment of debt

6,287


-


-


     Noncontrolling interest adjustments

2,259


1,436


7,402


     Goodwill impairment

-


-


10,025


      Other

2,363


1,142


145


      Decrease (increase) in assets:







          Accounts receivable, net

(82,117)


144,435


13,022


         Income tax receivable

(103,026)


(9,109)


-


          Inventories

(166,488)


166,607


(143,168)


          Leased railcars for syndication

(11,904)


(12,942)


(96,110)


          Other assets

(5,813)


(64,995)


6,843


      Increase (decrease) in liabilities:







          Accounts payable and accrued liabilities

109,922


(108,837)


55,910


          Deferred revenue

438


(27,920)


(19,275)


    Net cash provided by (used in) operating activities

(40,525)


272,261


(21,241)


Cash flows from investing activities







   Acquisitions, net of cash acquired

-


-


(361,878)


    Proceeds from sales of assets

15,927


83,484


125,427


    Capital expenditures

(139,011)


(66,879)


(198,233)


   Investments in and advances to unconsolidated affiliates

(26)


(1,815)


(11,393)


   Cash distribution from unconsolidated affiliates and other

5,350


12,693


2,096


    Net cash provided by (used in) investing activities

(117,760)


27,483


(443,981)


Cash flows from financing activities







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

197,382


146,542


(105)


   Proceeds from revolving notes with maturities longer than 90 days

112,000


176,500


-


   Repayments of revolving notes with maturities long than 90 days

(287,000)


-


-


   Proceeds from issuance of notes payable

391,890


-


525,000


   Repayments of notes payable

(337,754)


(30,179)


(182,971)


   Debt issuance costs

(21,997)


-


(8,630)


   Repurchase of stock

(20,000)


-


-


   Dividends

(35,663)


(35,173)


(33,193)


   Cash distribution to joint venture partner

(25,292)


(38,969)


(16,879)


   Investment by joint venture partner

7,000


-


-


   Tax payments for net share settlement of restricted stock

(3,308)


(2,266)


(6,321)


   Net cash provided by (used in) financing activities

(22,742)


216,455


276,901


   Effect of exchange rate changes

10,336


(12,599)


(12,666)


   Increase (decrease) in cash, cash equivalents and restricted cash

(170,691)


503,600


(200,987)


Cash and cash equivalents and restricted cash







   Beginning of period

842,087


338,487


539,474


   End of period

$      671,396


$      842,087


$      338,487


Balance Sheet Reconciliation:







   Cash and cash equivalents

$     646,769


$     833,745


$     329,684


   Restricted cash 

24,627


8,342


8,803


   Total cash and cash equivalents and restricted cash

$      671,396


$      842,087


$     338,487























Supplemental Leasing Information

(In thousands, except owned and managed fleet, unaudited)

GBX Leasing (GBXL) was formed in April 2021 as a joint venture with The Longwood Group to own and manage a portfolio of leased railcars primarily built by Greenbrier.  Greenbrier owns approximately 95% of GBXL and consolidates it in Greenbrier's financial statements in the Leasing & Services segment.  GBXL provides an additional "go to market" element to Greenbrier's Commercial strategy of direct sales, partnerships with operating leasing companies, origination of leases for syndication partners as well as providing a platform for further growth at scale.  GBXL will produce strong tax-advantaged cash flows.  The goal is to add at least $200 million in railcar assets annually at about 3:1 debt to equity (or 75%) based on the fair market value of assets.  GBX Leasing will observe Greenbrier's established portfolio standards including investing in strong credits with a diverse equipment mix and staggered maturity ladders.

During fiscal 2021, $197 million in fair market value of assets were acquired from Greenbrier's transaction flow and $147 million was drawn on the $300 million non-recourse railcar credit facility.  Subsequent to year end, Greenbrier acquired a portfolio of 3,600 railcars, a portion of which will be held in GBX Leasing.  Combined with Greenbrier built cars from lease originations, GBX Leasing's portfolio's value is $350 million as of September 30.  Over time the entity is expected to grow by at least $200 million in assets annually with a five-year target of $1 billion of assets.  Reflecting the strong momentum achieved since inception, GBX Leasing expects to use the asset-backed securities market to refinance the warehouse facility and to convert to long term financing in fiscal 2022.  Investing in leasing assets reduces Greenbrier's Manufacturing revenue and margin in the short-term but provides considerable tax benefits and longer-term earnings and cash flow stability.

Key information for the consolidated Leasing & Services segment


(In Units)

August 31,

2021


May 31,

2021

Owned fleet(1)

8,800


8,700

Managed fleet

444,000


445,000

Owned fleet utilization(1)

94%


94%


August 31,

2021


May 31,

2021

Equipment on operating lease(2)

$              609,812


$               446,888





GBX Leasing non-recourse warehouse

$              146,985


$                 96,576

Leasing non-recourse term loan

200,000


202,815

Total Leasing non-recourse debt

$              346,985


$               299,391





Fleet leverage %(3)

57%


67%



(1)

Owned fleet includes Leased railcars for syndication

(2)

Equipment on operating lease assets not securing Leasing non-recourse term loan support the $600 million U.S. revolver

(3)

Total Leasing non-recourse debt / Equipment on operating lease

 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

 (In thousands, except per share amounts, unaudited)


Operating Results by Quarter for 2021 are as follows:



First


Second


Third


Fourth


Total













Revenue











   Manufacturing

$    308,722


$    202,094


$    341,939


$     477,232


$ 1,329,987


   Wheels, Repair & Parts

65,556


71,623


80,871


80,280


298,330


   Leasing & Services

28,711


21,905


27,333


41,715


119,664



402,989


295,622


450,143


599,227


1,747,981


Cost of revenue











   Manufacturing

280,890


201,771


292,464


414,121


1,189,246


   Wheels, Repair & Parts

62,984


66,667


73,690


77,050


280,391


   Leasing & Services

18,444


9,513


8,857


9,923


46,737



362,318


277,951


375,011


501,094


1,516,374













Margin

40,671


17,671


75,132


98,133


231,607













Selling and administrative expense

43,707


43,425


49,239


55,442


191,813


Net (gain) loss on disposition of equipment

(922)


(27)


184


(411)


(1,176)


Earnings (loss) from operations

(2,114)


(25,727)


25,709


43,102


40,970













Other costs











Interest and foreign exchange

11,103


9,568


10,204


12,388


43,263


Net loss on extinguishment of debt

-


-


4,763


1,524


6,287


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

(13,217)


(35,295)


10,742


29,190


(8,580)


Income tax benefit

7,332


21,752


6,914


4,225


40,223


Earnings (loss) before earnings (loss) from unconsolidated affiliates

(5,885)


(13,543)


17,656


33,415


31,643


Earnings (loss) from unconsolidated affiliates

(744)


(378)


2,379


2,234


3,491













Net earnings (loss)

(6,629)


(13,921)


20,035


35,649


35,134


Net (earnings) loss attributable to   noncontrolling interest

(3,343)


4,856


(298)


(3,872)


(2,657)













Net earnings (loss) attributable to Greenbrier

$        (9,972)


$        (9,065)


$       19,737


$      31,777


$      32,477













Basic earnings (loss) per common share (1)

$          (0.30)


$          (0.28)


$           0.61


$           0.98


$           0.99













Diluted earnings (loss) per common share (1)

$          (0.30)


$          (0.28)


$           0.59


$           0.95


$           0.96













Dividends per common share

$           0.27


$           0.27


$           0.27


$           0.27


$           1.08



(1)   Quarterly amounts may not total to the year to date amount as each period is calculated discretely.


 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

 (In thousands, except per share amounts, unaudited)


Operating Results by Quarter for 2020 are as follows:



First


Second


Third


Fourth


Total













Revenue











   Manufacturing

$    657,367


$    489,943


$        653,007


$         549,654


$ 2,349,971


   Wheels, Repair & Parts

86,608


91,225


82,024


64,813


324,670


   Leasing & Services

25,384


42,680


27,526


21,958


117,548



769,359


623,848


762,557


636,425


2,792,189


Cost of revenue











   Manufacturing

581,912


422,309


562,793


498,155


2,065,169


   Wheels, Repair & Parts

81,892


84,373


75,001


60,923


302,189


   Leasing & Services

13,366


30,830


17,232


10,272


71,700



677,170


537,512


655,026


569,350


2,439,058













Margin

92,189


86,336


107,531


67,075


353,131













Selling and administrative expense

54,364


54,597


49,494


46,251


204,706


Net gain on disposition of equipment

(3,959)


(6,697)


(8,775)


(573)


(20,004)


Earnings from operations

41,784


38,436


66,812


21,397


168,429













Other costs











Interest and foreign exchange

12,852


12,609


7,562


10,596


43,619


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

28,932


25,827


59,250


10,801


124,810


Income tax expense

(5,994)


(7,463)


(24,421)


(2,306)


(40,184)


Earnings before earnings (loss) from unconsolidated affiliates

22,938


18,364


34,829


8,495


84,626


Earnings (loss) from unconsolidated affiliates

1,073


1,651


1,040


(804)


2,960













Net earnings

24,011


20,015


35,869


7,691


87,586


Net earnings attributable to noncontrolling  interest

(16,342)


(6,386)


(8,097)


(7,794)


(38,619)


Net earnings (loss) attributable to Greenbrier

$         7,669


$       13,629


$       27,772


$           (103)


$      48,967













Basic earnings (loss) per common share (1)

$           0.24


$           0.42


$           0.85


$          (0.00)


$           1.50













Diluted earnings (loss) per common share (1)

$           0.23


$           0.41


$           0.83


$          (0.00)


$           1.46













Dividends per common share

$           0.25


$           0.27


$           0.27


$            0.27


$           1.06



(1)     Quarterly amounts may not total to the year to date amount as each period is calculated discretely.

 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

 (In thousands, unaudited)


Segment Information


Three months ended August 31, 2021:











Revenue


Earnings (loss) from operations



External


Intersegment


  Total


External


Intersegment


Total


Manufacturing

$           477,232


$             61,957


$         539,189


$           43,313


$               3,802


$       47,115


Wheels, Repair & Parts

80,280


4,922


85,202


46


51


97


Leasing & Services

41,715


11,883


53,598


25,431


11,817


37,248


Eliminations

-


(78,762)


(78,762)


-


(15,670)


(15,670)


Corporate

-


-


-


(25,688)


-


(25,688)



$           599,227


$                      -


$         599,227


$           43,102


$                      -


$      43,102



Three months ended May 31, 2021:











Revenue


Earnings (loss) from operations



External


Intersegment


  Total


External


Intersegment


Total


Manufacturing

$           341,939


$               7,451


$         349,390


$           31,341


$                  492


$       31,833


Wheels, Repair & Parts

80,871


2,292


83,163


4,173


75


4,248


Leasing & Services

27,333


2,286


29,619


12,280


2,272


14,552


Eliminations

-


(12,029)


(12,029)


-


(2,839)


(2,839)


Corporate

-


-


-


(22,085)


-


(22,085)



$           450,143


$                      -


$         450,143


$           25,709


$                      -


$      25,709




Total assets



   August 31,
2021


May 31,

2021


Manufacturing

$              1,493,467


$              1,413,590


Wheels, Repair & Parts

260,904


265,847


Leasing & Services

949,380


878,743


Unallocated, including cash

686,917


651,987



$              3,390,668


$              3,210,167


 

Supplemental Backlog and Delivery Information

(Unaudited)  





Three Months Ended


Year Ended


August 31, 2021

August 31, 2021


Backlog Activity (units) (1)







Beginning backlog

24,800


24,600


Orders received

6,700


17,200


Production held on the Balance Sheet

(1,400)


(3,700)


Production sold directly to third parties

(3,500)


(11,500)


Ending backlog

26,600


26,600







Delivery Information (units) (1)





Production sold directly to third parties

3,500


11,500


Sales of Leased railcars for syndication

1,000


1,500


Total deliveries

4,500


13,000




(1)

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


 

THE GREENBRIER COMPANIES, INC.

Supplemental Information

(In thousands, excluding backlog and delivery units, unaudited)


Reconciliation of Net earnings to EBITDA





Three Months Ended


Year Ended






August 31,

2021


May 31,

2021


August 31,
2021



Net earnings

$                 35,649


$               20,035


$                   35,134



Interest and foreign exchange

12,388


10,204


43,263



Income tax benefit

(4,225)


(6,914)


(40,223)



Depreciation and amortization

25,080


24,769


100,717



Net loss on extinguishment of debt

1,524


4,763


6,287



EBITDA

$                70,416


$               52,857


$                 145,178













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





Three Months Ended


Year Ended




August 31,

2021


May 31,
2021


August 31,

2021

Net earnings attributable to Greenbrier

$                31,777


$               19,737


$                   32,477

Net loss on extinguishment of debt, net of tax

1,151

(1)

3,596

(2)

4,747

Adjusted net earnings attributable to Greenbrier

$               32,928


$                23,333


$                   37,224



(1)    

Net of tax of $373

(2)    

Net of tax of $1,167

 

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






Three Months Ended


Year Ended






August 31,

2021


May 31,
2021


August 31,

2021


Diluted earnings per share


$                   0.95


$                     0.59


$                       0.96


Net loss on extinguishment of debt, net of tax


0.03


0.10


0.14

(1)

Adjusted diluted earnings per share


$                   0.98


$                     0.69


$                       1.10


 

Diluted weighted average shares outstanding


33,420


33,605


33,665




(1)       

May not sum due to rounding

"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  "adjust," "allow,"  "believe", "continue,"  "expect," "goal," "maintain," "outlook," "position,"  "reduce," "will," and similar expressions to identify forward-looking statements. These forward-looking statements include, without limitation, statements about backlog, leasing performance, financing, future liquidity,  cash flow, our ability to grow market share and deliver future value to our shareholders and  other information regarding future performance and strategies and appear throughout this press release including in the headlines and the sections titled "Fourth Quarter Highlights," "Fiscal Year 2021 Highlights" and "Business Update & Outlook."  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 following: We are unable to predict when, how, or with what magnitude COVID-19, variants thereof, and governmental reaction thereto, and related economic disruptions (including, among other factors, supply disruptions and sectoral inflation) will negatively impact our business  Our backlog of railcar units and marine vessels is not necessarily indicative of future results of operations. Certain orders in backlog are subject to customary documentation which may not occur. More information on 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 report on Form 10-K and subsequent reports on 10-Q. 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

EBITDA, Adjusted net earnings (loss) 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 EBITDA as Net earnings (loss) before Interest and foreign exchange, Income tax benefit (expense), Depreciation and amortization and Net loss on extinguishment of debt. We believe the presentation of 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 (loss) 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.

SOURCE Greenbrier Companies, Inc.

Loading...
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsPress ReleasesRailroads and Intermodal TransportationTransportation/Trucking/Railroad
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...