GAAP EPS of $0.96
Consolidated gross margin of 15%
Orders for 5,100 units and $3.8 billion backlog provides forward
visibility
LAKE
OSWEGO, Ore., Jan. 5, 2024
/PRNewswire/ -- 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 first fiscal quarter ended November 30, 2023.
First Quarter Highlights
- Grew lease fleet by 700 units to 14,100 units and maintained
fleet utilization of 98%.
- Received new railcar orders for 5,100 units valued at nearly
$710 million and delivered 5,700
units, resulting in new railcar backlog of 29,700 units with an
estimated value of $3.8 billion.
- Net earnings attributable to Greenbrier for the quarter were
$31 million, or $0.96 per diluted share, on revenue of
$809 million.
- Adjusted EBITDA for the quarter was $93
million, or 11.5% of revenue.
- Board declared a quarterly dividend of $0.30 per share, payable on February 15, 2024 to shareholders of record as of
January 25, 2024 representing
Greenbrier's 39th consecutive quarterly dividend.
- As previously announced, Greenbrier issued $179 million of asset-backed securities with 6.5%
blended interest rate to support our leasing business. The offering
received the first "AA" debt rating of an asset backed security
offering within the freight rail asset class.
"Strong performance in the first quarter across all of our
operating segments demonstrates continued progress toward achieving
the targets established in our multi-year strategy.
Aggregate gross margin of 15% in the quarter is a key indicator of
success," said Lorie L. Tekorius,
CEO and President. "Importantly, our new railcar backlog
remains robust and is supported by quality products and customer
loyalty, making Greenbrier a market leader. Our backlog, combined
with programmatic railcar rebuilding activity not included in
backlog, provides clear revenue visibility into 2025. In
Leasing, the disciplined construction of our leased railcar fleet
and increasing lease rates make doubling our high-margin recurring
revenue an achievable goal in the years ahead. The pace of
progress on our strategic goals is encouraging as we work to
enhance Greenbrier's financial performance during periods of strong
market demand and stabilize performance at higher levels when
demand is less favorable."
Business Update & Outlook
Based on current trends and production schedules, Greenbrier
expects the following performance in fiscal 2024:
- Deliveries of 22,500 – 25,000 units, including approximately
1,000 units in Brazil
- Revenue of $3.4 – $3.7 billion
- Capital expenditures of approximately $165 million in Manufacturing and $15 million in Maintenance Services
- Gross leasing investment of approximately $350 million in Leasing & Management
Services, which includes 2024 capital expenditures and transfers of
railcars into the lease fleet that were produced and held on the
balance sheet in 2023
- Proceeds from equipment sales are expected to be approximately
$85 million
Financial Summary
|
Q1
FY24
|
Q4
FY23
|
Sequential
Comparison – Main Drivers
|
|
Revenue
|
$808.8M
|
$1,017.4M
|
Fewer new railcar
deliveries and lower wheel volumes
|
|
Gross margin
|
$121.3M
|
$126.7M
|
Improved operating
efficiency helped offset
lower revenue
|
|
Gross margin
%
|
15.0 %
|
12.5 %
|
|
Selling and
administrative
|
$56.3M
|
$59.6M
|
Reduced
employee-related costs
|
|
Adjusted
EBITDA(1)
|
$93.2M
|
$96.8M
|
Improved profitability
partially offset the
impact of lower revenue
|
|
Adjusted net earnings
attributable to Greenbrier
|
$31.2M
|
$29.7M(2)
|
No adjustments in Q1 –
prior quarter reflected
adjustments to remove costs associated with
exiting non-core operations
|
|
Adjusted diluted
EPS
|
$0.96
|
$0.92(2)
|
|
|
|
(1)
|
See reconciliation at
conclusion of Supplemental Information.
|
|
(2)
|
Excludes exit related
costs of $4.9 million ($0.15 per share), net of tax, in Q4 FY23.
Reconciliations for Adjusted metrics can be found in
Supplemental
Information.
|
Segment Summary
|
Q1
FY24
|
Q4
FY23
|
Sequential
Comparison – Main Drivers
|
|
Manufacturing
|
|
Revenue
|
$675.9M
|
$872.4M
|
Fewer
deliveries
|
|
Gross margin
%
|
11.1 %
|
9.3 %
|
Improved profitability
from increased operating
efficiencies
|
|
Earnings from
operations
|
$54.3M
|
$53.6M(1)
|
Increased operating
efficiencies on lower revenue
|
|
Operating margin
% (2)
|
8.0 %
|
6.1 %
|
|
Deliveries
(3)
|
5,200
|
6,800
|
Leveling production to
match expected demand
|
|
Maintenance
Services
|
|
Revenue
|
$83.8M
|
$100.0M
|
Lower wheelset and
repair volume
|
|
Gross margin
%
|
14.6 %
|
15.0 %
|
Continued benefits from
operating efficiencies
|
|
Earnings from
operations
|
$10.6M
|
$13.6M
|
Lower volumes reduced
revenue and earnings
|
|
Operating margin
% (2)
|
12.6 %
|
13.6 %
|
|
Leasing &
Management Services
|
|
Revenue
|
$49.1M
|
$45.0M
|
Increased syndication
activity and higher leasing
income
|
|
Gross margin
%
|
69.5 %
|
67.8 %
|
|
Earnings from
operations
|
$26.3M
|
$21.1M
|
Expanded syndication
activity including activity with new customers
|
|
Operating margin
% (2)
|
53.6 %
|
47.0 %
|
|
Owned fleet
(units)
|
14,100
|
13,400
|
Disciplined portfolio
construction with successful ABS
transaction, providing leverage through non-recourse
debt
|
|
Fleet
utilization
|
98.2 %
|
98.3 %
|
|
|
|
|
(1)
|
Q4 FY23 includes
pre-tax exit related costs of $6.6 million.
|
|
(2)
|
See supplemental
segment information in Supplemental Information.
|
|
(3)
|
Excludes Brazil
deliveries which are not consolidated into Manufacturing revenue
and margins.
|
Conference Call
Greenbrier will host a teleconference to discuss its first
quarter 2024 results. In conjunction with this news release,
Greenbrier has posted a supplemental earnings presentation to our
website. Teleconference details are as follows:
- January 5, 2024
- 8:00 a.m. Pacific Standard
Time
- Phone: 1-888-317-6003 (Toll Free), 1-412-317-6061
(International), Entry Number "9223601"
- 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 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 maintenance services business unit. Greenbrier owns a lease
fleet of approximately 14,100 railcars that originate primarily
from Greenbrier's manufacturing operations. Greenbrier offers
railcar management, regulatory compliance services and leasing
services to railroads and other railcar owners in North America. Learn more about Greenbrier at
www.gbrx.com.
|
THE GREENBRIER COMPANIES,
INC.
|
|
Consolidated Balance
Sheets
(In millions, unaudited)
|
|
|
November 30,
2023
|
August
31,
2023
|
May
31,
2023
|
February
28,
2023
|
November 30,
2022
|
|
Assets
|
|
|
|
|
|
|
Cash and
cash equivalents
|
$
307.3
|
$
281.7
|
$
321.4
|
$
379.9
|
$
263.3
|
|
Restricted
cash
|
14.0
|
21.0
|
20.1
|
19.7
|
17.2
|
|
Accounts
receivable, net
|
458.7
|
529.9
|
533.6
|
571.5
|
495.6
|
|
Income tax
receivable
|
10.5
|
42.2
|
29.8
|
22.4
|
28.9
|
|
Inventories
|
883.6
|
823.6
|
888.0
|
910.6
|
874.9
|
|
Leased
railcars for syndication
|
159.8
|
187.4
|
119.4
|
102.5
|
272.5
|
|
Equipment
on operating leases, net
|
1,095.8
|
1,000.0
|
941.0
|
891.8
|
836.2
|
|
Property,
plant and equipment, net
|
618.1
|
619.2
|
600.4
|
618.4
|
617.6
|
|
Investment
in unconsolidated affiliates
|
89.4
|
88.7
|
86.4
|
83.4
|
94.2
|
|
Intangibles and other assets, net
|
248.9
|
255.8
|
253.3
|
224.0
|
189.0
|
|
Goodwill
|
128.6
|
128.9
|
128.3
|
128.3
|
127.7
|
|
$
4,014.7
|
$
3,978.4
|
$
3,921.7
|
$
3,952.5
|
$
3,817.1
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
Revolving
notes
|
$
279.4
|
$
297.1
|
$
280.0
|
$
310.3
|
$
290.5
|
|
Accounts
payable and accrued liabilities
|
640.9
|
743.5
|
741.6
|
722.6
|
676.5
|
|
Deferred
income taxes
|
85.2
|
114.1
|
88.3
|
70.2
|
49.8
|
|
Deferred
revenue
|
42.2
|
46.2
|
56.6
|
73.0
|
53.2
|
|
Notes
payable, net
|
1,479.4
|
1,311.7
|
1,320.3
|
1,327.0
|
1,301.5
|
|
|
|
|
|
|
|
Contingently
redeemable noncontrolling
interest
|
56.5
|
55.6
|
54.1
|
27.5
|
27.7
|
|
|
|
|
|
|
|
Total
equity – Greenbrier
|
1,274.0
|
1,254.6
|
1,232.7
|
1,277.3
|
1,265.8
|
|
Noncontrolling interest
|
157.1
|
155.6
|
148.1
|
144.6
|
152.1
|
|
Total
equity
|
1,431.1
|
1,410.2
|
1,380.8
|
1,421.9
|
1,417.9
|
|
$
4,014.7
|
$
3,978.4
|
$
3,921.7
|
$
3,952.5
|
$
3,817.1
|
|
THE GREENBRIER COMPANIES,
INC.
|
|
Consolidated
Statements of Operations
(In millions, except number of shares which are reflected in
thousands and per share amounts, unaudited)
|
|
|
Three Months
Ended
November
30,
|
|
|
2023
|
|
2022
|
|
|
Revenue
|
|
|
|
|
|
Manufacturing
|
$
675.9
|
|
$
646.5
|
|
|
Maintenance Services
|
83.8
|
|
85.5
|
|
|
Leasing
& Management Services
|
49.1
|
|
34.5
|
|
|
808.8
|
|
766.5
|
|
|
Cost of revenue
|
|
|
|
|
|
Manufacturing
|
600.9
|
|
604.5
|
|
|
Maintenance Services
|
71.6
|
|
79.6
|
|
|
Leasing
& Management Services
|
15.0
|
|
12.9
|
|
|
687.5
|
|
697.0
|
|
|
|
|
|
|
|
Margin
|
121.3
|
|
69.5
|
|
|
|
|
|
|
|
Selling and
administrative expense
|
56.3
|
|
53.4
|
|
|
Net loss (gain) on
disposition of equipment
|
0.1
|
|
(3.3)
|
|
|
Impairment of
long-lived assets
|
–
|
|
24.2
|
|
|
Earnings (loss) from operations
|
64.9
|
|
(4.8)
|
|
|
|
|
|
|
|
Other costs
|
|
|
|
|
|
Interest and foreign
exchange
|
23.2
|
|
19.6
|
|
|
Earnings (loss) before
income tax and earnings from
unconsolidated affiliates
|
41.7
|
|
(24.4)
|
|
|
Income tax (expense)
benefit
|
(10.0)
|
|
3.8
|
|
|
Earnings (loss) before
earnings from unconsolidated
affiliates
|
31.7
|
|
(20.6)
|
|
|
Earnings from
unconsolidated affiliates
|
1.5
|
|
3.3
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
33.2
|
|
(17.3)
|
|
|
Net (earnings) loss
attributable to noncontrolling interest
|
(2.0)
|
|
0.6
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to
Greenbrier
|
$
31.2
|
|
$
(16.7)
|
|
|
|
|
|
|
|
Basic earnings
(loss) per common share:
|
$
1.00
|
|
$
(0.51)
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per common share:
|
$
0.96
|
|
$
(0.51)
|
|
|
|
|
|
|
|
Weighted average
common shares:
|
|
|
|
|
|
Basic
|
31,025
|
|
32,719
|
|
|
Diluted
|
32,782
|
|
32,719
|
|
|
|
|
|
|
|
Dividends per common
share
|
$
0.30
|
|
$
0.27
|
|
|
THE GREENBRIER COMPANIES, INC.
|
|
Consolidated
Statements of Cash Flows
(In millions, unaudited)
|
|
|
Three Months Ended
November 30,
|
|
|
2023
|
|
2022
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
Net earnings
(loss)
|
$
33.2
|
|
$
(17.3)
|
|
|
Adjustments to
reconcile net earnings (loss) to net cash used in
operating
activities:
|
|
|
|
|
|
Deferred income taxes
|
(29.3)
|
|
(19.0)
|
|
|
Depreciation and amortization
|
26.8
|
|
26.0
|
|
|
Net loss (gain) on disposition of equipment
|
0.1
|
|
(3.3)
|
|
|
Stock based compensation expense
|
3.4
|
|
3.2
|
|
|
Impairment of
long-lived assets
|
–
|
|
24.2
|
|
|
Noncontrolling interest adjustments
|
0.4
|
|
5.5
|
|
|
Other
|
0.9
|
|
0.9
|
|
|
Decrease (increase) in assets:
|
|
|
|
|
|
Accounts receivable, net
|
72.6
|
|
8.1
|
|
|
Income tax receivable
|
31.7
|
|
10.9
|
|
|
Inventories
|
(61.6)
|
|
(56.3)
|
|
|
Leased railcars for syndication
|
(20.0)
|
|
(195.3)
|
|
|
Other assets
|
4.9
|
|
(7.0)
|
|
|
Increase (decrease) in liabilities:
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
(103.2)
|
|
(53.7)
|
|
|
Deferred revenue
|
(4.6)
|
|
17.6
|
|
|
Net
cash used in operating activities
|
(44.7)
|
|
(255.5)
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
Proceeds from sales of assets
|
0.4
|
|
13.8
|
|
|
Capital expenditures
|
(68.3)
|
|
(57.0)
|
|
|
Investments in and advances to unconsolidated affiliates
|
–
|
|
0.9
|
|
|
Cash
distribution from unconsolidated affiliates and other
|
0.6
|
|
(0.7)
|
|
|
Net
cash used in investing activities
|
(67.3)
|
|
(43.0)
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
Net
change in revolving notes with maturities of 90 days or
less
|
31.0
|
|
(83.4)
|
|
|
Proceeds
from revolving notes with maturities longer than 90 days
|
90.1
|
|
110.0
|
|
|
Repayments
of revolving notes with maturities longer than 90 days
|
(139.9)
|
|
(35.0)
|
|
|
Proceeds
from issuance of notes payable
|
178.6
|
|
41.0
|
|
|
Repayments
of notes payable
|
(9.7)
|
|
(9.2)
|
|
|
Debt
issuance costs
|
(2.5)
|
|
–
|
|
|
Repurchase
of stock
|
(1.3)
|
|
–
|
|
|
Dividends
|
(10.3)
|
|
(9.3)
|
|
|
Cash
distribution to joint venture partner
|
–
|
|
(2.5)
|
|
|
Tax
payments for net share settlement of restricted stock
|
(5.2)
|
|
(2.3)
|
|
|
Net cash
provided by financing activities
|
130.8
|
|
9.3
|
|
|
Effect of
exchange rate changes
|
(0.2)
|
|
10.6
|
|
|
Increase
(decrease) in cash, cash equivalents and restricted cash
|
18.6
|
|
(278.6)
|
|
|
Cash and cash
equivalents and restricted cash
|
|
|
|
|
|
Beginning
of period
|
302.7
|
|
559.1
|
|
|
End of
period
|
$
321.3
|
|
$
280.5
|
|
|
Balance Sheet
Reconciliation:
|
|
|
|
|
|
Cash and
cash equivalents
|
$
307.3
|
|
$
263.3
|
|
|
Restricted
cash
|
14.0
|
|
17.2
|
|
|
Total cash
and cash equivalents and restricted cash
|
$
321.3
|
|
$
280.5
|
|
|
|
|
|
|
THE GREENBRIER COMPANIES, INC.
Supplemental Leasing Information
(In millions,
except owned and managed fleet, unaudited)
Greenbrier's leasing strategy provides an additional "go to
market" element to Greenbrier's Commercial strategy of direct
sales, partnerships with operating leasing companies, and
origination of leases for syndication partners as well as providing
a platform for further growth at scale. Investing in leasing
assets also provides a recurring stream of high margin revenue and
tax-advantaged cash flows, however in the short-term it reduces
Greenbrier's Manufacturing revenue and margin as a result of
deferring revenue recognition.
During the April 2023 Investor
Day, Greenbrier provided a long-term target of more than double
recurring revenue from leasing and management fees by investing up
to $300 million net annually for the
next five years.
|
Key information for
the consolidated Leasing & Management Services
segment:
|
|
|
Three Months
Ended
|
|
Greenbrier Lease
Fleet (Units)(1)
|
November 30,
2023
|
|
August 31,
2023
|
|
Beginning
balance
|
13,400
|
|
12,500
|
|
Railcars
added
|
1,800
|
|
1,800
|
|
Railcars
sold / scrapped
|
(1,100)
|
|
(900)
|
|
Ending
balance
|
14,100
|
|
13,400
|
|
|
November 30,
2023
|
|
August 31,
2023
|
|
Equipment on operating
lease(2)
|
$
1,095.8
|
|
$
1,000.0
|
|
|
|
|
|
Non-recourse
warehouse
|
$
65.1
|
|
$
139.9
|
|
ABS non-recourse
notes
|
483.3
|
|
307.5
|
|
Non-recourse term
loan
|
329.7
|
|
332.7
|
|
Total Leasing
non-recourse debt
|
$
878.1
|
|
$
780.1
|
|
|
|
|
|
Fleet leverage
%(3)(4)
|
80 %
|
|
78 %
|
|
|
|
(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
|
|
(4)
|
Fleet assets are
leveraged at Fair Market Value based on independent appraisals
while they are shown at net book value on Greenbrier's Consolidated
Balance Sheet
|
|
THE GREENBRIER COMPANIES,
INC.
|
|
Supplemental
Information
(In millions, except per share amounts,
unaudited)
|
|
|
Operating Results by
Quarter for Fiscal 2023 are as follows:
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
Total
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
$
646.5
|
|
$
968.6
|
|
$
870.2
|
|
$
872.4
|
|
$
3,357.7
|
|
|
Maintenance Services
|
85.5
|
|
98.0
|
|
122.9
|
|
100.0
|
|
406.4
|
|
|
Leasing
& Management Services
|
34.5
|
|
55.4
|
|
45.0
|
|
45.0
|
|
179.9
|
|
|
766.5
|
|
1,122.0
|
|
1,038.1
|
|
1,017.4
|
|
3,944.0
|
|
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
604.5
|
|
901.2
|
|
786.5
|
|
791.2
|
|
3,083.4
|
|
|
Maintenance Services
|
79.6
|
|
89.6
|
|
109.8
|
|
85.0
|
|
364.0
|
|
|
Leasing
& Management Services
|
12.9
|
|
14.4
|
|
13.7
|
|
14.5
|
|
55.5
|
|
|
697.0
|
|
1,005.2
|
|
910.0
|
|
890.7
|
|
3,502.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin
|
69.5
|
|
116.8
|
|
128.1
|
|
126.7
|
|
441.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expense
|
53.4
|
|
59.0
|
|
63.3
|
|
59.6
|
|
235.3
|
|
|
Net gain on disposition
of equipment
|
(3.3)
|
|
(9.6)
|
|
(2.3)
|
|
(2.1)
|
|
(17.3)
|
|
|
Asset impairment,
disposal, and exit costs, net
|
24.2
|
|
-
|
|
16.4
|
|
6.1
|
|
46.7
|
|
|
Earnings (loss) from
operations
|
(4.8)
|
|
67.4
|
|
50.7
|
|
63.1
|
|
176.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other costs
|
|
|
|
|
|
|
|
|
|
|
|
Interest and foreign
exchange
|
19.6
|
|
21.6
|
|
22.8
|
|
21.4
|
|
85.4
|
|
|
Earnings (loss) before
income tax and earnings from unconsolidated affiliates
|
(24.4)
|
|
45.8
|
|
27.9
|
|
41.7
|
|
91.0
|
|
|
Income tax (expense)
benefit
|
3.8
|
|
(11.9)
|
|
(3.6)
|
|
(12.9)
|
|
(24.6)
|
|
|
Earnings (loss) before
earnings from unconsolidated affiliates
|
(20.6)
|
|
33.9
|
|
24.3
|
|
28.8
|
|
66.4
|
|
|
Earnings from
unconsolidated affiliates
|
3.3
|
|
2.9
|
|
2.4
|
|
0.6
|
|
9.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
(17.3)
|
|
36.8
|
|
26.7
|
|
29.4
|
|
75.6
|
|
|
Net (earnings) loss
attributable to noncontrolling interest
|
0.6
|
|
(3.7)
|
|
(5.4)
|
|
(4.6)
|
|
(13.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to
Greenbrier
|
$
(16.7)
|
|
$
33.1
|
|
$
21.3
|
|
$
24.8
|
|
$
62.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per common share
(1)
|
$
(0.51)
|
|
$
1.01
|
|
$
0.67
|
|
$
0.80
|
|
$
1.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per common share
(1)
|
$
(0.51)
|
|
$
0.97
|
|
$
0.64
|
|
$
0.77
|
|
$
1.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per common
share
|
$
0.27
|
|
$
0.27
|
|
$
0.27
|
|
$
0.30
|
|
$
1.11
|
|
|
|
|
(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 millions, unaudited)
|
|
|
Segment
Information
|
|
|
Three months ended
November 30, 2023:
|
|
Revenue
|
|
Earnings (loss) from
operations
|
|
External
|
|
Intersegment
|
|
Total
|
|
External
|
|
Intersegment
|
|
Total
|
|
|
Manufacturing
|
$
675.9
|
|
$
58.5
|
|
$
734.4
|
|
$
54.3
|
|
$
4.7
|
|
$
59.0
|
|
|
Maintenance
Services
|
83.8
|
|
9.2
|
|
93.0
|
|
10.6
|
|
–
|
|
10.6
|
|
|
Leasing
& Management Services
|
49.1
|
|
0.2
|
|
49.3
|
|
26.3
|
|
–
|
|
26.3
|
|
|
Eliminations
|
–
|
|
(67.9)
|
|
(67.9)
|
|
–
|
|
(4.7)
|
|
(4.7)
|
|
|
Corporate
|
–
|
|
–
|
|
–
|
|
(26.3)
|
|
–
|
|
(26.3)
|
|
|
$
808.8
|
|
$
–
|
|
$
808.8
|
|
$
64.9
|
|
$
–
|
|
$
64.9
|
|
|
|
Three months ended
August 31, 2023:
|
|
Revenue
|
|
Earnings (loss) from
operations
|
|
|
External
|
|
Intersegment
|
|
Total
|
|
External
|
|
Intersegment
|
|
Total
|
|
|
Manufacturing
|
$
872.4
|
|
$
78.1
|
|
$
950.5
|
|
$
53.6
|
|
$
8.0
|
|
$
61.6
|
|
|
Maintenance
Services
|
100.0
|
|
10.3
|
|
110.3
|
|
13.6
|
|
-
|
|
13.6
|
|
|
Leasing &
Management Services
|
45.0
|
|
0.3
|
|
45.3
|
|
21.1
|
|
0.2
|
|
21.3
|
|
|
Eliminations
|
-
|
|
(88.7)
|
|
(88.7)
|
|
-
|
|
(8.2)
|
|
(8.2)
|
|
|
Corporate
|
-
|
|
-
|
|
-
|
|
(25.2)
|
|
-
|
|
(25.2)
|
|
|
$
1,017.4
|
|
$
-
|
|
$
1,017.4
|
|
$
63.1
|
|
$
-
|
|
$
63.1
|
|
|
Total assets
|
|
|
November 30,
2023
|
|
August 31,
2023
|
|
|
Manufacturing
|
$
1,799.3
|
|
$
1,847.0
|
|
|
Maintenance
Services
|
311.3
|
|
294.4
|
|
|
Leasing &
Management Services
|
1,537.6
|
|
1,458.1
|
|
|
Unallocated, including
cash
|
366.5
|
|
378.9
|
|
|
$
4,014.7
|
|
$
3,978.4
|
|
|
Backlog and Delivery
Information
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
November 30,
2023
|
|
Backlog Activity
(units) (1)
|
|
|
|
Beginning
backlog
|
30,900
|
|
|
Orders
received
|
5,100
|
|
|
Production held on the
Balance Sheet
|
(1,700)
|
|
|
Production sold to
third parties
|
(4,600)
|
|
|
Ending
backlog
|
29,700
|
|
|
|
|
|
Delivery Information
(units) (1)
|
|
|
|
Direct sales
|
4,400
|
|
|
Sale of Leased railcars
for syndication
|
1,300
|
|
|
Total
deliveries
|
5,700
|
|
|
|
|
|
|
|
(1)
|
Includes
Greenbrier-Maxion, our Brazilian railcar manufacturer, which is
accounted for under the equity method
|
|
THE GREENBRIER COMPANIES,
INC.
|
|
Supplemental
Information
(In millions, except number of shares which
are reflected in thousands and per share amounts,
unaudited)
|
|
|
Reconciliation of
Net earnings to Adjusted EBITDA
|
|
|
Three Months
Ended
|
|
November 30,
2023
|
|
August 31,
2023
|
|
|
Net earnings
|
$
33.2
|
|
$
29.4
|
|
|
Interest and foreign
exchange
|
23.2
|
|
21.4
|
|
|
Income tax
expense
|
10.0
|
|
12.9
|
|
|
Depreciation and
amortization
|
26.8
|
|
26.5
|
|
|
Asset disposal and exit
related costs, net
|
–
|
|
6.6
|
|
|
Adjusted
EBITDA
|
$
93.2
|
|
$
96.8
|
|
|
Reconciliation of
Net earnings attributable to Greenbrier to Adjusted net
earnings attributable to Greenbrier
|
|
|
Three Months
Ended
|
|
|
November 30,
2023
|
|
August 31,
2023
|
|
|
Net earnings
attributable to Greenbrier
|
$
31.2
|
|
$
24.8
|
|
|
Asset disposal and exit
related costs, net
|
–
|
|
4.9
|
(1)
|
|
Adjusted net earnings
attributable to
Greenbrier
|
$
31.2
|
|
$
29.7
|
|
|
|
(1)
|
Net of tax of $2.6
million
|
|
Reconciliation of
Diluted earnings per share to Adjusted diluted earnings per
share
|
|
|
Three Months
Ended
|
|
November 30,
2023
|
|
August 31,
2023
|
|
Diluted earnings per
share
|
$
0.96
|
|
$
0.77
|
|
Asset disposal and exit
related costs, net
|
–
|
|
0.15
|
|
Adjusted diluted
earnings per share
|
$
0.96
|
|
$
0.92
|
|
Diluted weighted
average shares outstanding
|
32,782
|
|
32,707
|
|
Share Calculations
for Adjusted diluted earnings per share
|
|
|
Three Months
Ended
|
|
|
November 30,
2023
|
|
August 31,
2023
|
|
|
Basic Shares
|
31,025
|
|
30,904
|
|
|
Dilutive effect of
performance awards
|
931
|
|
979
|
|
|
Dilutive effect of
convertible notes due 2024
|
826
|
|
824
|
|
|
Diluted weighted
average shares outstanding
|
32,782
|
|
32,707
|
|
|
Debt
Summary
|
|
|
Three Months
Ended
|
|
|
November 30,
2023
|
|
August 31,
2023
|
|
|
Total Leasing
non-recourse debt
|
$
878.1
|
|
$
780.1
|
|
|
Total other
debt
|
900.2
|
|
846.9
|
|
|
1,778.3
|
|
1,627.0
|
|
|
Debt discount and
issuance costs (1)
|
(19.5)
|
|
(18.2)
|
|
|
Total consolidated
debt
|
$
1,758.8
|
|
$
1,608.8
|
|
|
|
(1)
|
Represents capitalized
debt discount and issuance costs.
|
Forward-Looking Statements
This press release may contain forward-looking statements,
including statements that are not purely statements of historical
fact. Greenbrier uses words, and variations of words, such as
"backlog," "believe," "confidence," "continue," "drive," "enhance,"
"estimate," "expect," "provide," "position," "realize," "strategy,"
"target," "will," and similar expressions to identify
forward-looking statements. These forward-looking statements
include, without limitation, statements about backlog and other
orders, leasing performance, financing, future liquidity, cash
flow, tax treatment, and other information regarding future
performance and strategies and appear throughout this press
release. 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: an economic downturn and economic
uncertainty; inflation (including rising energy prices, interest
rates, wages and other escalators) and policy reactions thereto
(including actions by central banks); disruptions in the supply of
materials and components used in the production of our products;
the war in Ukraine and related
events; and the COVID-19 pandemic, variants thereof, governmental
reaction thereto, and related economic disruptions (including,
among other factors, operations and supply disruptions and labor
shortages). Our backlog of railcar units and other orders not
included in backlog are 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
Adjusted EBITDA, Adjusted net earnings attributable to
Greenbrier, and Adjusted diluted earnings per share (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 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 and other items.
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.
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.
View original
content:https://www.prnewswire.com/news-releases/greenbrier-reports-first-quarter-results-302026979.html
SOURCE The Greenbrier Companies, Inc.
