Greenbrier Reports Second Quarter Results
The Greenbrier Companies (GBX) reported financial results for Q2 FY21, reflecting challenges amid COVID-19. The company secured 3,800 new railcar orders valued at over $440 million, supporting a backlog of 24,900 units worth $2.5 billion. Revenue was $296 million, marking a net loss of $9 million or $0.28 per share. Liquidity remains strong at $708 million, bolstered by a recent $300 million credit facility. Greenbrier's CEO expressed optimism about recovering demand and expects a stronger second half of FY21 as production ramps up.
- Secured 3,800 new railcar orders valued at over $440 million.
- Diversified backlog of 24,900 units with an estimated value of $2.5 billion.
- Strong liquidity position of $708 million, including $593 million in cash.
- Formation of GBX Leasing joint venture with initial funding of nearly $100 million.
- Quarterly dividend maintained at $0.27 per share, marking 28 consecutive quarters.
- Net loss of $9 million, representing a challenging financial quarter.
- Revenue decreased by 37% from the previous quarter due to fewer deliveries.
- Adjusted EBITDA was negative at $1 million, indicating operational struggles.
LAKE OSWEGO, Ore., April 6, 2021 /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 second fiscal quarter ended February 28, 2021.
Second Quarter Highlights
- New railcar orders for 3,800 units valued at over
$440 million during the quarter. Deliveries in the quarter were 2,100 units, a 1.8x book-to-bill. - Diversified new railcar backlog as of February 28, 2021 was 24,900 units with an estimated value of
$2.5 billion . - Immediate liquidity of
$708 million , includes$593 million in cash and$115 million of available borrowing capacity. Combined with nearly$100 million of liquidity initiatives in progress totals over$800 million . - Operating cash flow in the quarter included inventory accumulation of
$48 million to support manufacturing production increases beginning in fiscal Q3 and a$44 million increase in leased railcars for syndication. - COVID-19 related expenses for the quarter were
$2.5 million (pre-tax) and$6.4 million (pre-tax) for the first half of fiscal 2021. - Net loss attributable to Greenbrier for the quarter was
$9 million , or$0.28 per diluted share, on revenue of$296 million . The net loss included$16 million in anticipated federal income tax benefit resulting from loss carryback provisions. - Adjusted EBITDA for the quarter was negative
$1 million . - Subsequent to quarter-end, completed the earlier announced formation of GBX Leasing joint venture, including initial funding of nearly
$100 million from a new$300 million non-recourse railcar warehouse credit facility. - Board declares a quarterly dividend of
$0.27 per share, payable on May 12, 2021 to shareholders as of April 21, 2021 representing Greenbrier's 28th consecutive quarterly dividend.
William A. Furman, Chairman & CEO commented, "Greenbrier navigated what we expect will be our most challenging quarter of the fiscal year. Operating challenges emerged from a range of sources, including winter weather, impacting deliveries and production. Our near-term outlook is becoming increasingly optimistic as rail fundamentals improve. Rail loadings are up year-to-date, driven by increased traffic in grain, intermodal and other categories. Railroad velocity has slowed by nearly two miles per hour. Railcars in storage have decreased by more than 148,000 units from the 2020 peak storage level. Proposed environmental and other regulations in both North America and Europe should support secular demand for rail as a growing mode for freight transport. Fiscal stimulus and proposed infrastructure legislation are expected to further add to demand."
Furman concluded, "Greenbrier is well-positioned for an economic recovery. Our pipeline of new business inquiries in North America has expanded dramatically in the last 30 days. Greenbrier's ability to adjust production capacity to meet our market outlook enables us to rapidly ramp manufacturing as we earn new railcar orders. We have already restarted several production lines supported by firm orders to meet increased demand."
Business Update & Outlook
Greenbrier has practiced disciplined management to meet the realities of this historic time. Our core strategy since March 2020 has been and continues to be:
- Maintain a strong liquidity base and balance sheet
- Navigate the COVID-19 pandemic and the related economic crisis by safely operating our factories while generating cash
- Prepare for emerging economic recovery and forward momentum in our markets, which we expect to expand during the latter half of calendar 2021. Greenbrier is currently operating in this phase.
Looking ahead, Greenbrier expects the second half of fiscal 2021 to be stronger than the first half, reflecting increased production rates and stronger activity across the business. Greenbrier's ability to achieve more than
Financial Summary
Q2 FY21 | Q1 FY21 | Sequential Comparison – Main Drivers | |
Revenue |
| ||
Gross margin | |||
Selling and administrative | Maintaining cost discipline | ||
Adjusted EBITDA | ( | Low new railcar deliveries and weak NA environment | |
Effective tax rate | Tax benefit from lease fleet investments and operating | ||
Net (earnings) loss attributable to | 4.9M | ( | Operating loss from fewer deliveries at GIMSA joint |
Net loss attributable to | ( | ( | Lower operating activity reflecting fewer deliveries |
Diluted EPS | ( | ( |
Segment Summary
Q2 FY21 | Q1 FY21 | Sequential Comparison – Main Drivers | |
Manufacturing | |||
Revenue | Fewer deliveries reflecting weak demand environment | ||
Gross margin | |||
Operating margin (1) | ( | ||
Deliveries (2) | 1,700 | 2,700 | |
Wheels, Repair & Parts | |||
Revenue | Modestly increased wheel volumes from winter | ||
Gross margin | Improved volume in Wheel Services partially offset | ||
Operating margin (1) | ( | ||
Leasing & Services | |||
Revenue | Prior quarter had externally sourced syndication | ||
Gross margin | More normalized gross margin activity | ||
Operating margin (1) (3) | Strong gross margin performance | ||
Fleet utilization | |||
(1) | See supplemental segment information on page 12 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 2021 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website.
Teleconference details are as follows:
- April 6, 2021
- 8:00 a.m. Pacific Daylight Time
- Phone: 1-888-317-6003 (Toll Free) 1-412-317-6061 (International), Entry Number "7592105"
- 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, and other components. Greenbrier owns a lease fleet of 8,700 railcars and performs management services for 445,000 railcars. Learn more about Greenbrier at www.gbrx.com.
THE GREENBRIER COMPANIES, INC. | |||||
Consolidated Balance Sheets | |||||
(In thousands, unaudited) | |||||
February 28, | November 30, | August 31, 2020 | May 31, 2020 | February 29, 2020 | |
Assets | |||||
Cash and cash equivalents | $ 593,499 | $ 724,547 | $ 833,745 | $ 735,258 | $ 169,899 |
Restricted cash | 8,614 | 8,547 | 8,342 | 8,704 | 8,569 |
Accounts receivable, net | 236,171 | 216,220 | 230,488 | 261,629 | 325,056 |
Income tax receivable | 62,103 | 24,448 | 9,109 | - | 1,173 |
Inventories | 522,984 | 490,282 | 529,529 | 675,442 | 709,115 |
Leased railcars for syndication | 109,287 | 51,087 | 107,671 | 136,144 | 255,073 |
Equipment on operating leases, net | 445,451 | 445,542 | 350,442 | 355,841 | 385,974 |
Property, plant and equipment, net | 687,468 | 696,333 | 711,524 | 719,155 | 723,326 |
Investment in unconsolidated affiliates | 70,820 | 72,254 | 72,354 | 75,508 | 79,082 |
Intangibles and other assets, net | 190,283 | 186,509 | 190,322 | 181,315 | 160,709 |
Goodwill | 132,685 | 130,315 | 130,308 | 130,035 | 129,684 |
$ 3,059,365 | $ 3,046,084 | $ 3,173,834 | $ 3,279,031 | $ 2,947,660 | |
Liabilities and Equity | |||||
Revolving notes | $ 275,839 | $ 276,248 | $ 351,526 | $ 416,535 | $ 37,196 |
Accounts payable and accrued liabilities | 448,571 | 434,138 | 463,880 | 488,969 | 499,898 |
Deferred income taxes | 24,798 | 10,120 | 7,701 | 4,354 | 9,173 |
Deferred revenue | 42,572 | 36,916 | 42,467 | 63,536 | 70,869 |
Notes payable, net | 793,189 | 797,089 | 804,088 | 806,919 | 811,860 |
Contingently redeemable noncontrolling interest | 30,037 | 30,711 | 31,117 | 30,611 | 30,782 |
Total equity – Greenbrier | 1,268,502 | 1,280,407 | 1,293,043 | 1,291,221 | 1,286,472 |
Noncontrolling interest | 175,857 | 180,455 | 180,012 | 176,886 | 201,410 |
Total equity | 1,444,359 | 1,460,862 | 1,473,055 | 1,468,107 | 1,487,882 |
$ 3,059,365 | $ 3,046,084 | $ 3,173,834 | $ 3,279,031 | $ 2,947,660 | |
THE GREENBRIER COMPANIES, INC. | |||||||||||||
Consolidated Statements of Operations | |||||||||||||
(In thousands, except per share amounts, unaudited) | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
February 28, | February 29, | February 28, | February 29, | ||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||
Revenue | |||||||||||||
Manufacturing | $ 202,094 | $ 489,943 | $ 510,816 | $ 1,147,310 | |||||||||
Wheels, Repair & Parts | 71,623 | 91,225 | 137,179 | 177,833 | |||||||||
Leasing & Services | 21,905 | 42,680 | 50,616 | 68,064 | |||||||||
295,622 | 623,848 | 698,611 | 1,393,207 | ||||||||||
Cost of revenue | |||||||||||||
Manufacturing | 201,771 | 422,309 | 482,661 | 1,004,221 | |||||||||
Wheels, Repair & Parts | 66,667 | 84,373 | 129,651 | 166,265 | |||||||||
Leasing & Services | 9,513 | 30,830 | 27,957 | 44,196 | |||||||||
277,951 | 537,512 | 640,269 | 1,214,682 | ||||||||||
Margin | 17,671 | 86,336 | 58,342 | 178,525 | |||||||||
Selling and administrative expense | 43,425 | 54,597 | 87,132 | 108,961 | |||||||||
Net gain on disposition of equipment | (27) | (6,697) | (949) | (10,656) | |||||||||
Earnings (loss) from operations | (25,727) | 38,436 | (27,841) | 80,220 | |||||||||
Other costs | |||||||||||||
Interest and foreign exchange | 9,568 | 12,609 | 20,671 | 25,461 | |||||||||
Earnings (loss) before income tax and earnings (loss) from unconsolidated affiliates | (35,295) | 25,827 | (48,512) | 54,759 | |||||||||
Income tax benefit (expense) | 21,752 | (7,463) | 29,084 | (13,457) | |||||||||
Earnings (loss) before earnings (loss) from unconsolidated affiliates | (13,543) | 18,364 | (19,428) | 41,302 | |||||||||
Earnings (loss) from unconsolidated affiliates | (378) | 1,651 | (1,122) | 2,724 | |||||||||
Net earnings (loss) | (13,921) | 20,015 | (20,550) | 44,026 | |||||||||
Net (earnings) loss attributable to noncontrolling interest | 4,856 | (6,386) | 1,513 | (22,728) | |||||||||
Net earnings (loss) attributable to Greenbrier | $ (9,065) | $ 13,629 | $ (19,037) | $ 21,298 | |||||||||
Basic earnings (loss) per common share: | $ (0.28) | $ 0.42 | $ (0.58) | $ 0.65 | |||||||||
Diluted earnings (loss) per common share: | $ (0.28) | $ 0.41 | $ (0.58) | $ 0.64 | |||||||||
Weighted average common shares: | |||||||||||||
Basic | 32,810 | 32,661 | 32,766 | 32,645 | |||||||||
Diluted | 32,810 | 33,482 | 32,766 | 33,382 | |||||||||
Dividends per common share | $ 0.27 | $ 0.27 | $ 0.54 | $ 0.52 | |||||||||
THE GREENBRIER COMPANIES, INC. | ||||||
Supplemental Information | ||||||
(In thousands, except per share amounts, unaudited) | ||||||
Operating Results by Quarter for 2021 are as follows: | ||||||
First | Second | Total | ||||
Revenue | ||||||
Manufacturing | $ 308,722 | $ 202,094 | $ 510,816 | |||
Wheels, Repair & Parts | 65,556 | 71,623 | 137,179 | |||
Leasing & Services | 28,711 | 21,905 | 50,616 | |||
402,989 | 295,622 | 698,611 | ||||
Cost of revenue | ||||||
Manufacturing | 280,890 | 201,771 | 482,661 | |||
Wheels, Repair & Parts | 62,984 | 66,667 | 129,651 | |||
Leasing & Services | 18,444 | 9,513 | 27,957 | |||
362,318 | 277,951 | 640,269 | ||||
Margin | 40,671 | 17,671 | 58,342 | |||
Selling and administrative expense | 43,707 | 43,425 | 87,132 | |||
Net gain on disposition of equipment | (922) | (27) | (949) | |||
Loss from operations | (2,114) | (25,727) | (27,841) | |||
Other costs | ||||||
Interest and foreign exchange | 11,103 | 9,568 | 20,671 | |||
Loss before income tax and loss from unconsolidated affiliates | (13,217) | (35,295) | (48,512) | |||
Income tax benefit | 7,332 | 21,752 | 29,084 | |||
Loss before loss from unconsolidated affiliates | (5,885) | (13,543) | (19,428) | |||
Loss from unconsolidated affiliates | (744) | (378) | (1,122) | |||
Net Loss | (6,629) | (13,921) | (20,550) | |||
Net (earnings) loss attributable to noncontrolling interest | (3,343) | 4,856 | 1,513 | |||
Net Loss attributable to Greenbrier | $ (9,972) | $ (9,065) | $ (19,037) | |||
Basic loss per common share (1) | $ (0.30) | $ (0.28) | $ (0.58) | |||
Diluted loss per common share (1) | $ (0.30) | $ (0.28) | $ (0.58) | |||
Dividends per common share | $ 0.27 | $ 0.27 | $ 0.54 | |||
(1) | Quarterly amounts may 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 |
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 | ||||||
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 per common share (1) | $ 0.24 | $ 0.42 | $ 0.85 | $ (0.00) | $ 1.50 | |||||
Diluted earnings 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. Diluted EPS is calculated by including the dilutive effect, using the treasury stock method, associated with shares underlying the |
THE GREENBRIER COMPANIES, INC. | |||||||
Consolidated Statements of Cash Flows | |||||||
(In thousands, unaudited) | |||||||
Six Months Ended | |||||||
February 28, | February 29, | ||||||
2021 | 2020 | ||||||
Cash flows from operating activities | |||||||
Net earnings (loss) | $ | (20,550) | $ | 44,026 | |||
Adjustments to reconcile net earnings (loss) to net cash used in operating activities: | |||||||
Deferred income taxes | 16,969 | (6,714) | |||||
Depreciation and amortization | 50,868 | 59,338 | |||||
Net gain on disposition of equipment | (949) | (10,656) | |||||
Accretion of debt discount | 2,857 | 2,718 | |||||
Stock based compensation expense | 8,951 | 7,237 | |||||
Noncontrolling interest adjustments | (1,285) | 9,038 | |||||
Other | 1,135 | (39) | |||||
Decrease (increase) in assets: | |||||||
Accounts receivable, net | (10,735) | 47,282 | |||||
Income tax receivable | (52,994) | (1,173) | |||||
Inventories | (35,005) | (55,158) | |||||
Leased railcars for syndication | (37,988) | (123,033) | |||||
Other assets | (2,895) | (39,433) | |||||
Increase (decrease) in liabilities: | |||||||
Accounts payable and accrued liabilities | (13,257) | (67,988) | |||||
Deferred revenue | 104 | 1,381 | |||||
Net cash used in operating activities | (94,774) | (133,174) | |||||
Cash flows from investing activities | |||||||
Proceeds from sales of assets | 11,336 | 41,827 | |||||
Capital expenditures | (50,353) | (40,834) | |||||
Investments in and advances to/repayments from unconsolidated affiliates | 4,523 | (1,500) | |||||
Cash distribution from unconsolidated affiliates and other | 488 | 11,273 | |||||
Net cash provided by (used in) investing activities | (34,006) | 10,766 | |||||
Cash flows from financing activities | |||||||
Net change in revolving notes with maturities of 90 days or less | 98,442 | 10,246 | |||||
Proceeds from revolving notes with maturities longer than 90 days | 112,000 | - | |||||
Repayments of revolving notes with maturities longer than 90 days | (286,000) | - | |||||
Repayments of notes payable | (14,990) | (17,120) | |||||
Dividends | (18,046) | (17,312) | |||||
Cash distribution to joint venture partner | (3,646) | (8,706) | |||||
Tax payments for net share settlement of restricted stock | (2,357) | (1,895) | |||||
Net cash used in financing activities | (114,597) | (34,787) | |||||
Effect of exchange rate changes | 3,403 | (2,824) | |||||
Decrease in cash, cash equivalents and restricted cash | (239,974) | (160,019) | |||||
Cash and cash equivalents and restricted cash | |||||||
Beginning of period | 842,087 | 338,487 | |||||
End of period | $ | 602,113 | $ | 178,468 | |||
Balance Sheet Reconciliation | |||||||
Cash and cash equivalents | $ | 593,499 | $ | 169,899 | |||
Restricted cash | 8,614 | 8,569 | |||||
Total cash and cash equivalents and restricted cash as presented above | $ | 602,113 | $ | 178,468 | |||
THE GREENBRIER COMPANIES, INC. | ||||||
Supplemental Information | ||||||
(In thousands, excluding backlog and delivery units, unaudited) | ||||||
Reconciliation of Net loss to Adjusted EBITDA | ||||||
Three Months Ended | ||||||
February 28, 2021 | November 30, 2020 | |||||
Net loss | $ (13,921) | $ (6,629) | ||||
Interest and foreign exchange | 9,568 | 11,103 | ||||
Income tax benefit | (21,752) | (7,332) | ||||
Depreciation and amortization | 24,822 | 26,046 | ||||
Adjusted EBITDA | $ (1,283) | $ 23,188 | ||||
Three Months | ||||
February 28, 2021 | ||||
Backlog Activity (units) (1) | ||||
Beginning backlog | 23,900 | |||
Orders received | 3,800 | |||
Production held as Leased railcars for syndication | (800) | |||
Production sold directly to third parties | (2,000) | |||
Ending backlog | 24,900 | |||
Delivery Information (units) (1) | ||||
Production sold directly to third parties | 2,000 | |||
Sales of Leased railcars for syndication | 100 | |||
Total deliveries | 2,100 | |||
(1) | Includes Greenbrier-Maxion, our Brazilian railcar manufacturer, which is accounted for under the equity method |
THE GREENBRIER COMPANIES, INC. | |||
Supplemental Leasing Information | |||
(In thousands, except owned and managed fleet, unaudited) | |||
February 28, 2021 | November 30, 2020 | ||
Owned fleet | 8,700 | 8,400 | |
Managed fleet | 445,000 | 407,000 | |
Owned fleet utilization | |||
February 28, 2021 | November 30, 2020 | ||
Leased railcars for syndications | $ 109,287 | $ 51,087 | |
Equipment on operating lease | 445,451 | 445,542 | |
Total | $ 554,738 | $ 496,629 | |
Leasing non-recourse debt | $ 204,722 | $ 206, 629 | |
Recourse debt | 588,467 | 590,460 | |
Total debt | $ 793,189 | $ 797,089 | |
Fleet leverage %(1) | |||
(1) | Leasing non-recourse debt / Sum of leased railcars for syndication and equipment on operating lease |
THE GREENBRIER COMPANIES, INC. | ||||||||||||
Supplemental Information | ||||||||||||
(In thousands, unaudited) | ||||||||||||
Segment Information | ||||||||||||
Three months ended February 28, 2021: | ||||||||||||
Revenue | Earnings (loss) from operations | |||||||||||
External | Intersegment | Total | External | Intersegment | Total | |||||||
Manufacturing | $ 202,094 | $ 2,425 | $ 204,519 | $ (17,216) | $ 100 | $ (17,116) | ||||||
Wheels, Repair & Parts | 71,623 | 1,603 | 73,226 | 2,433 | (14) | 2,419 | ||||||
Leasing & Services | 21,905 | 1,113 | 23,018 | 6,420 | 634 | 7,054 | ||||||
Eliminations | - | (5,141) | (5,141) | - | (720) | (720) | ||||||
Corporate | - | - | - | (17,364) | - | (17,364) | ||||||
$ 295,622 | $ - | $ 295,622 | $ (25,727) | $ - | $ (25,727) | |||||||
Three months ended November 30, 2020: | ||||||||||||
Revenue | Earnings (loss) from operations | |||||||||||
External | Intersegment | Total | External | Intersegment | Total | |||||||
Manufacturing | $ 308,722 | $ 20,591 | $ 329,313 | $ 9,686 | $ 2,505 | $ 12,191 | ||||||
Wheels, Repair & Parts | 65,556 | 301 | 65,857 | (200) | (9) | (209) | ||||||
Leasing & Services | 28,711 | 4,665 | 33,376 | 5,890 | 4,285 | 10,175 | ||||||
Eliminations | - | (25,557) | (25,557) | - | (6,781) | (6,781) | ||||||
Corporate | - | - | - | (17,490) | - | (17,490) | ||||||
$ 402,989 | $ - | $ 402,989 | $ (2,114) | $ - | $ (2,114) | |||||||
Total assets | ||||||
February 28, | November 30, 2020 | |||||
Manufacturing | $ 1,313,819 | $ 1,264,616 | ||||
Wheels, Repair & Parts | 277,788 | 274,534 | ||||
Leasing & Services | 851,546 | 758,820 | ||||
Unallocated | 616,212 | 748,114 | ||||
$ 3,059,365 | $ 3,046,084 | |||||
"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," "become," "continue," "expect," "maintain," "outlook," "position," "should," "will," and similar expressions to identify forward-looking statements. These forward-looking statements include, without limitation, statements about backlog, and future liquidity and cash flow as well as other information regarding future performance and strategies and appear throughout this press release including in the headlines and the section "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. (1) We are unable to predict when, how, or with what magnitude COVID-19 governmental reaction to the pandemic, and related economic disruptions will negatively impact our business: we may be prevented from operating our facilities; the operations of our customers may be disrupted increasing the likelihood that our customers may attempt to delay, defer or cancel orders, or cease to operate as going concerns; the operations of our suppliers may be disrupted; our indebtedness may increase; we may breach the covenants in our credit agreement; the market price of our common stock may drop or remain volatile; we may incur significant employee health care costs under our self-insurance programs. The longer the pandemic continues, the more likely that negative impacts on our business will occur, some of which we cannot now foresee. (2) 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. Customers may attempt to cancel or modify orders or refuse to accept and pay for products. The likelihood of cancellations, modifications, rejection and non-payment for our products generally increases during periods of market weakness. The timing of converting backlog to revenue is also materially impacted by our decision whether to lease railcars, sell railcars, or syndicate railcars with a lease attached to an investor. (3) Our joint ventures, including our leasing joint venture, may not perform as anticipated or expected. 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 report 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 (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 Adjusted EBITDA as Net earnings (loss) before Interest and foreign exchange, Income tax benefit (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 (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.
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SOURCE The Greenbrier Companies, Inc.
FAQ
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