Greenbrier Reports Second Quarter Results
The Greenbrier Companies, Inc. (GBX) reported Q2 FY22 results with a diluted EPS of $0.38 on revenue of $683 million, marking a 19% increase from Q1. New railcar orders totaled 8,500 units valued at $930 million, leading to a backlog of 32,100 units worth $3.6 billion, the highest in six years. Fleet utilization rose to 98%. The company secured $323 million in asset-backed notes at a 2.9% rate. A quarterly dividend of $0.27 was declared, representing Greenbrier's 32nd consecutive dividend. Financial momentum is seen despite challenges from the pandemic and rising costs.
- Revenue increased by 19% from Q1 to $683 million.
- New railcar orders reached 8,500 units valued at $930 million.
- Backlog of 32,100 units, worth $3.6 billion, is the highest in six years.
- Fleet utilization improved to 98%.
- Secured $323 million in asset-backed notes at a 2.9% rate.
- Gross margin decreased from 8.6% to 8.0% due to production inefficiencies and supply chain issues.
- Operating margin for manufacturing fell to 0.3%, a decrease from 2.7% in the prior quarter.
Diluted EPS of
Orders for 8,500 new railcars valued at
Fleet utilization increases to
LAKE OSWEGO, Ore., April 6, 2022 /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, 2022.
Second Quarter Highlights
- New railcar orders for 8,500 units valued at
$930 million and deliveries of 4,800 units resulted in a 1.8x book-to-bill. - Diversified new railcar backlog as of February 28, 2022 was 32,100 units with a value of
$3.6 billion . - Railcar refurbishment and other transportation equipment backlog of 3,200 units valued at
$180 million for delivery during fiscal 2022 and 2023 reflects Greenbrier's strong engineering and innovation capabilities. This activity is not included in new railcar backlog. - Increased lease fleet utilization to
98% . - Regular lease fleet optimization and monetization generated
$120 million of proceeds and$25 million of gains. - Net earnings attributable to Greenbrier for the quarter were
$13 million , or$0.38 per diluted share, on revenue of$683 million . - Quarter end liquidity increased to
$804 million , including$587 million in cash and$217 million of available borrowing capacity. - GBX Leasing completed the issuance of
$323 million of asset-backed notes with a blended rate of2.9% . The notes have a weighted average life of six years. - Board declared a quarterly dividend of
$0.27 per share, payable on May 10, 2022 to shareholders of record as of April 19, 2022 representing Greenbrier's 32nd consecutive quarterly dividend.
Lorie Tekorius, President and CEO, commented, "Greenbrier's commercial momentum continued during the second fiscal quarter of 2022, as we achieved our fifth consecutive quarter with a book-to-bill ratio exceeding 1.0x on orders approaching
William A. Furman, Executive Chairman, added, "The tragedy in Ukraine and its impact on commodity prices are likely to have far-reaching consequences to the global railcar industry, including growth in rail freight in many sectors. We are closely watching global commodity markets, including crude oil, grain and fertilizers, that are traditionally leading indicators for expansion in freight rail loadings. Now operating on four continents, Greenbrier is continuously assessing the effect of geopolitical developments, and actively working to support the safety and security of our employees and the cybersecurity of our information and data infrastructure. Since 2020, we have experienced some of the most daunting operating conditions in Greenbrier's history. We have not only survived, but we have thrived in this changing environment. Our industry-leading manufacturing footprint, our growing services business and our established capabilities allow us to meet these challenges directly, bringing customers the solutions that meet their needs."
Business Update & Outlook
Greenbrier continues to meet the challenges of emerging COVID variants while balancing economic, supply chain and labor volatility. Based on current business trends and production schedules for fiscal 2022, Greenbrier expects:
- Deliveries of 17,500 – 19,500 units including approximately 1,500 units in Greenbrier-Maxion (Brazil).
- Selling & administrative expense to be
$200 -$210 million . - Capital expenditures of
$275 million in Leasing & Management Services,$55 million in Manufacturing and$10 million in Maintenance Services. Net of proceeds of equipment sales of approximately$150 million , capital expenditures in Leasing & Management Services will be$125 million .
Financial Summary
Q2 FY22 | Q1 FY22 | Sequential Comparison – Main Drivers | |
Revenue | |||
Gross margin | Impact of production ramping inefficiencies, Omicron variant and mitigation of supply chain disruptions | ||
Selling and administrative | Increased employee costs, consulting, travel and legal expense from higher business activity levels | ||
Net gain on disposition of equipment | Increased gains from regular fleet optimization and monetization | ||
EBITDA | Increased operating earnings reflecting higher revenue across all business units; See reconciliation on page 10 | ||
Net loss attributable to noncontrolling interest | Partners' share of consolidated JV's operating results | ||
Net earnings attributable to Greenbrier | Improved operating earnings partially offset by more typical earnings from unconsolidated affiliates | ||
Diluted EPS |
Segment Summary
Q2 FY22 | Q1 FY22 | Sequential Comparison – Main Drivers | |
Manufacturing | |||
Revenue | Increased deliveries primarily in North America | ||
Gross margin | Inefficiencies from ramping production, impact of the Omicron variant and increased expense to mitigate supply chain disruptions | ||
Operating margin (1) | |||
Deliveries (2) | 4,400 | 3,700 | |
Maintenance Services | |||
Revenue | Increased volumes due to winter seasonality | ||
Gross margin | Improved throughput despite labor challenges | ||
Operating margin (1) | ( | ||
Leasing & Management Services (including GBX Leasing) | |||
Revenue | Primarily increased syndication activity | ||
Gross margin | |||
Operating margin (1) (3) | Benefited from timing of gains from fleet optimization | ||
Fleet utilization | |||
(1) | See supplemental segment information on page 9 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 second quarter of 2022 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website.
Teleconference details are as follows:
- April 6, 2022
- 8:00 a.m. Pacific Daylight Time
- Phone: 1-888-317-6003 (Toll Free) 1-412-317-6061 (International), Entry Number "8138307"
- 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 431,000 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. GBXL and Greenbrier own a lease fleet of 11,000 railcars. Learn more about Greenbrier at www.gbrx.com.
THE GREENBRIER COMPANIES, INC. | |||||
Consolidated Balance Sheets (In millions, unaudited) | |||||
February 28, 2022 | November 30, 2021 | August 31, 2021 | May 31, 2021 | February 28, | |
Assets | |||||
Cash and cash equivalents | $ 586.8 | $ 410.8 | $ 646.8 | $ 628.2 | $ 593.5 |
Restricted cash | 15.7 | 27.1 | 24.6 | 8.7 | 8.6 |
Accounts receivable, net | 399.0 | 393.3 | 306.4 | 274.8 | 236.2 |
Income tax receivable | 106.0 | 106.2 | 112.1 | 75.1 | 62.1 |
Inventories | 728.5 | 631.4 | 573.6 | 553.2 | 523.0 |
Leased railcars for syndication | 80.0 | 99.1 | 51.6 | 154.0 | 109.3 |
Equipment on operating leases, net | 650.4 | 751.3 | 609.8 | 446.9 | 445.4 |
Property, plant and equipment, net | 646.5 | 654.4 | 670.2 | 676.0 | 687.5 |
Investment in unconsolidated affiliates | 90.2 | 83.1 | 79.9 | 79.4 | 70.8 |
Intangibles and other assets, net | 179.6 | 183.0 | 183.6 | 180.8 | 190.3 |
Goodwill | 130.0 | 130.3 | 132.1 | 133.1 | 132.7 |
$ 3,612.7 | $ 3,470.0 | $ 3,390.7 | $ 3,210.2 | $ 3,059.4 | |
Liabilities and Equity | |||||
Revolving notes | $ 292.2 | $ 516.3 | $ 372.2 | $ 325.2 | $ 275.8 |
Accounts payable and accrued liabilities | 581.2 | 540.4 | 569.8 | 480.4 | 448.6 |
Deferred income taxes | 51.9 | 51.3 | 73.3 | 44.9 | 24.8 |
Deferred revenue | 43.0 | 36.6 | 42.8 | 43.7 | 42.6 |
Notes payable, net | 1,209.2 | 895.7 | 826.5 | 835.0 | 793.2 |
Contingently redeemable noncontrolling interest | 28.5 | 29.7 | 29.7 | 30.3 | 30.0 |
Total equity – Greenbrier | 1,252.6 | 1,237.3 | 1,307.7 | 1,286.7 | 1,268.5 |
Noncontrolling interest | 154.1 | 162.7 | 168.7 | 164.0 | 175.9 |
Total equity | 1,406.7 | 1,400.0 | 1,476.4 | 1,450.7 | 1,444.4 |
$ 3,612.7 | $ 3,470.0 | $ 3,390.7 | $ 3,210.2 | $ 3,059.4 | |
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 February 28, | Six Months Ended February 28, | |||||||
2022 | 2021 | 2022 | 2021 | |||||
Revenue | ||||||||
Manufacturing | $ 555.7 | $ 201.5 | $ 1,008.2 | $ 506.0 | ||||
Maintenance Services | 86.6 | 71.6 | 159.0 | 137.2 | ||||
Leasing & Management Services | 40.5 | 22.5 | 66.3 | 55.4 | ||||
682.8 | 295.6 | 1,233.5 | 698.6 | |||||
Cost of revenue | ||||||||
Manufacturing | 535.0 | 201.8 | 956.6 | 482.7 | ||||
Maintenance Services | 81.7 | 66.7 | 152.9 | 129.7 | ||||
Leasing & Management Services | 11.3 | 9.5 | 21.6 | 27.9 | ||||
628.0 | 278.0 | 1,131.1 | 640.3 | |||||
Margin | 54.8 | 17.6 | 102.4 | 58.3 | ||||
Selling and administrative expense | 54.7 | 43.4 | 99.0 | 87.1 | ||||
Net gain on disposition of equipment | (25.1) | (0.1) | (33.6) | (1.0) | ||||
Earnings (loss) from operations | 25.2 | (25.7) | 37.0 | (27.8) | ||||
Other costs | ||||||||
Interest and foreign exchange | 11.8 | 9.6 | 24.4 | 20.7 | ||||
Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates | 13.4 | (35.3) | 12.6 | (48.5) | ||||
Income tax (expense) benefit | (3.2) | 21.8 | (1.8) | 29.1 | ||||
Earnings (loss) before earnings (loss) from unconsolidated affiliates | 10.2 | (13.5) | 10.8 | (19.4) | ||||
Earnings (loss) from unconsolidated affiliates | 1.0 | (0.4) | 6.0 | (1.2) | ||||
Net earnings (loss) | 11.2 | (13.9) | 16.8 | (20.6) | ||||
Net loss attributable to noncontrolling interest | 1.6 | 4.8 | 6.8 | 1.5 | ||||
Net earnings (loss) attributable to Greenbrier | $ 12.8 | $ (9.1) | $ 23.6 | $ (19.1) | ||||
Basic earnings (loss) per common share: | $ 0.39 | $ (0.28) | $ 0.72 | $ (0.58) | ||||
Diluted earnings (loss) per common share: | $ 0.38 | $ (0.28) | $ 0.70 | $ (0.58) | ||||
Weighted average common shares: | ||||||||
Basic | 32,582 | 32,810 | 32,546 | 32,766 | ||||
Diluted | 34,463 | 32,810 | 33,609 | 32,766 | ||||
Dividends declared per common share | $ 0.27 | $ 0.27 | $ 0.54 | $ 0.54 | ||||
THE GREENBRIER COMPANIES, INC. | ||||
Consolidated Statements of Cash Flows | ||||
Six Months Ended | ||||
2022 | 2021 | |||
Cash flows from operating activities | ||||
Net earnings (loss) | $ 16.8 | $ (20.6) | ||
Adjustments to reconcile net earnings (loss) to net cash used in operating activities: | ||||
Deferred income taxes | (4.3) | 17.0 | ||
Depreciation and amortization | 50.9 | 50.9 | ||
Net gain on disposition of equipment | (33.6) | (1.0) | ||
Accretion of debt discount | - | 2.9 | ||
Stock based compensation expense | 5.9 | 9.0 | ||
Noncontrolling interest adjustments | (0.6) | (1.3) | ||
Other | 2.4 | 1.1 | ||
Decrease (increase) in assets: | ||||
Accounts receivable, net | (93.5) | (10.7) | ||
Income tax receivable | 6.2 | (53.0) | ||
Inventories | (166.5) | (35.0) | ||
Leased railcars for syndication | (12.2) | (38.0) | ||
Other assets | (8.5) | (2.9) | ||
Increase (decrease) in liabilities: | ||||
Accounts payable and accrued liabilities | 15.2 | (13.3) | ||
Deferred revenue | 1.5 | 0.1 | ||
Net cash used in operating activities | (220.3) | (94.8) | ||
Cash flows from investing activities | ||||
Proceeds from sales of assets | 148.6 | 11.3 | ||
Capital expenditures | (198.0) | (50.3) | ||
Investments in and advances to / repayments from unconsolidated affiliates |
(4.2) |
4.5 | ||
Cash distribution from unconsolidated affiliates and other | 1.2 | 0.5 | ||
Net cash used in investing activities | (52.4) | (34.0) | ||
Cash flows from financing activities | ||||
Net change in revolving notes with maturities of 90 days or less | (75.6) | 98.4 | ||
Proceeds from revolving notes with maturities longer than 90 days Repayments of revolving notes with maturities longer than 90 days | - - | 112.0 (286.0) | ||
Proceeds from issuance of notes payable | 323.3 | - | ||
Repayments of notes payable | (7.6) | (15.0) | ||
Debt issuance costs | (5.2) | - | ||
Dividends | (18.1) | (18.0) | ||
Cash distribution to joint venture partner | (8.5) | (3.6) | ||
Tax payments for net share settlement of restricted stock | (3.5) | (2.4) | ||
Net cash provided by (used in) financing activities | 204.8 | (114.6) | ||
Effect of exchange rate changes | (1.0) | 3.4 | ||
Decrease in cash, cash equivalents and restricted cash | (68.9) | (240.0) | ||
Cash and cash equivalents and restricted cash | ||||
Beginning of period | 671.4 | 842.1 | ||
End of period | $ 602.5 | $ 602.1 | ||
Balance Sheet Reconciliation: | ||||
Cash and cash equivalents | $ 586.8 | $ 593.5 | ||
Restricted cash | 15.7 | 8.6 | ||
Total cash and cash equivalents and restricted cash | $ 602.5 | $ 602.1 | ||
THE GREENBRIER COMPANIES, INC.
Supplemental Leasing Information
(In millions, 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
GBX Leasing's fleet value was nearly
Key information for the consolidated Leasing & Management Services segment
(In Units) | February 28, 2022 | November 30, 2021 | |
Owned fleet(1) | 11,000 | 12,900 | |
Managed fleet | 431,000 | 443,000 | |
Owned fleet utilization(1) | |||
February 28, 2022 | November 30, 2021 | ||
Beginning balance | 12,900 | 8,800 | |
Cars added | 1,000 | 5,100 | |
Cars sold / scrapped | (2,900) | (1,000) | |
Ending balance | 11,000 | 12,900 | |
February 28, 2022 | November 30, 2021 | ||
Equipment on operating lease(2) | $ 650.4 | $ 751.3 | |
GBX Leasing non-recourse warehouse | $ - | $ 293.0 | |
GBX Leasing ABS non-recourse notes | 323.3 | - | |
Leasing non-recourse term loan | 196.5 | 198.3 | |
Total Leasing non-recourse debt | $ 519.8 | $ 491.3 | |
Fleet leverage %(3) | |||
(1) | Owned fleet includes Leased railcars for syndication |
(2) | Equipment on operating lease assets not securing Leasing non-recourse term loan support the |
(3) | Total Leasing non-recourse debt / Equipment on operating lease |
THE GREENBRIER COMPANIES, INC. | ||||||||||||||||||
Supplemental Information (In millions, unaudited) | ||||||||||||||||||
Segment Information | ||||||||||||||||||
Three months ended February 28, 2022: | ||||||||||||||||||
Revenue | Earnings (loss) from operations | |||||||||||||||||
External | Intersegment | Total | External | Intersegment | Total | |||||||||||||
Manufacturing | $ 555.7 | $ 1.8 | $ 557.5 | $ 1.8 | $ - | $ 1.8 | ||||||||||||
Maintenance Services | 86.6 | 6.1 | 92.7 | 2.9 | - | 2.9 | ||||||||||||
Leasing & Management Services | 40.5 | 0.4 | 40.9 | 47.6 | - | 47.6 | ||||||||||||
Eliminations | - | (8.3) | (8.3) | - | - | - | ||||||||||||
Corporate | - | - | - | (27.1) | - | (27.1) | ||||||||||||
$ 682.8 | $ - | $ 682.8 | $ 25.2 | $ - | $ 25.2 | |||||||||||||
Three months ended November 30, 2021: | ||||||||||||
Revenue | Earnings (loss) from operations | |||||||||||
External | Intersegment | Total | External | Intersegment | Total | |||||||
Manufacturing | $ 452.5 | $ 39.4 | $ 491.9 | $ 12.3 | $ 0.3 | $ 12.6 | ||||||
Maintenance Services | 72.4 | 2.7 | 75.1 | (1.1) | - | (1.1) | ||||||
Leasing & Management Services | 25.8 | 0.3 | 26.1 | 17.2 | - | 17.2 | ||||||
Eliminations | - | (42.4) | (42.4) | - | (0.3) | (0.3) | ||||||
Corporate | - | - | - | (16.6) | - | (16.6) | ||||||
$ 550.7 | $ - | $ 550.7 | $ 11.8 | $ - | $ 11.8 | |||||||
Total assets | ||||||||
February 28, | November 30, | |||||||
Manufacturing | $ 1,698.5 | $ 1,550.3 | ||||||
Maintenance Services | 272.0 | 261.5 | ||||||
Leasing & Management Services | 1,038.8 | 1,219.9 | ||||||
Unallocated, including cash | 603.4 | 438.3 | ||||||
$ 3,612.7 | $ 3,470.0 | |||||||
Supplemental Backlog and Delivery Information | ||||
Three Months | ||||
February 28, 2022 | ||||
Backlog Activity (units) (1) | ||||
Beginning backlog | 28,000 | |||
Orders received | 8,500 | |||
Production held on the Balance Sheet | (1,000) | |||
Production sold directly to third parties | (3,400) | |||
Ending backlog | 32,100 | |||
Delivery Information (units) (1) | ||||
Production sold directly to third parties | 3,400 | |||
Sales of Leased railcars for syndication | 1,400 | |||
Total deliveries | 4,800 | |||
(1) | Includes Greenbrier-Maxion, our Brazilian railcar manufacturer, which is accounted for under the equity method |
THE GREENBRIER COMPANIES, INC. | |||||||
Supplemental Information (In millions, unaudited) | |||||||
Reconciliation of Net earnings to EBITDA | |||||||
Three Months Ended | |||||||
February 28, 2022 | November 30, 2021 | ||||||
Net earnings | $ 11.2 | $ 5.6 | |||||
Interest and foreign exchange | 11.8 | 12.6 | |||||
Income tax expense (benefit) | 3.2 | (1.4) | |||||
Depreciation and amortization | 25.5 | 25.4 | |||||
EBITDA | $ 51.7 | $ 42.2 | |||||
THE GREENBRIER COMPANIES, INC. | ||||||
Supplemental Information (In millions, except per share amounts, unaudited) | ||||||
Operating Results by Quarter for 2022 are as follows: | ||||||
First | Second | Total | ||||
Revenue | ||||||
Manufacturing | $ 452.5 | $ 555.7 | $ 1,008.2 | |||
Maintenance Services | 72.4 | 86.6 | 159.0 | |||
Leasing & Management Services | 25.8 | 40.5 | 66.3 | |||
550.7 | 682.8 | 1,233.5 | ||||
Cost of revenue | ||||||
Manufacturing | 421.6 | 535.0 | 956.6 | |||
Maintenance Services | 71.2 | 81.7 | 152.9 | |||
Leasing & Management Services | 10.3 | 11.3 | 21.6 | |||
503.1 | 628.0 | 1,131.1 | ||||
Margin | 47.6 | 54.8 | 102.4 | |||
Selling and administrative expense | 44.3 | 54.7 | 99.0 | |||
Net gain on disposition of equipment | (8.5) | (25.1) | (33.6) | |||
Earnings from operations | 11.8 | 25.2 | 37.0 | |||
Other costs | ||||||
Interest and foreign exchange | 12.6 | 11.8 | 24.4 | |||
Earnings (loss) before income tax and earnings from unconsolidated affiliates | (0.8) | 13.4 | 12.6 | |||
Income tax (expense) benefit | 1.4 | (3.2) | (1.8) | |||
Earnings before earnings from unconsolidated | 0.6 | 10.2 | 10.8 | |||
Earnings from unconsolidated affiliates | 5.0 | 1.0 | 6.0 | |||
Net earnings | 5.6 | 11.2 | 16.8 | |||
Net loss attributable to noncontrolling interest | 5.2 | 1.6 | 6.8 | |||
Net earnings attributable to Greenbrier | $ 10.8 | $ 12.8 | $ 23.6 | |||
Basic earnings per common share (1) | $ 0.33 | $ 0.39 | $ 0.72 | |||
Diluted earnings per common share (1) | $ 0.32 | $ 0.38 | $ 0.70 | |||
Dividends declared 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. |
THE GREENBRIER COMPANIES, INC. | ||||||||||
Supplemental Information (In millions, except per share amounts, unaudited) | ||||||||||
Operating Results by Quarter for 2021 are as follows: | ||||||||||
First | Second | Third | Fourth | Total | ||||||
Revenue | ||||||||||
Manufacturing | $ 304.5 | $ 201.5 | $ 339.7 | $ 465.4 | $ 1,311.1 | |||||
Maintenance Services | 65.6 | 71.6 | 80.9 | 80.2 | 298.3 | |||||
Leasing & Management Services | 32.9 | 22.5 | 29.6 | 53.5 | 138.5 | |||||
403.0 | 295.6 | 450.2 | 599.1 | 1,747.9 | ||||||
Cost of revenue | ||||||||||
Manufacturing | 280.9 | 201.8 | 292.4 | 414.1 | 1,189.2 | |||||
Maintenance Services | 63.0 | 66.7 | 73.7 | 77.0 | 280.4 | |||||
Leasing & Management Services | 18.4 | 9.5 | 8.9 | 9.9 | 46.7 | |||||
362.3 | 278.0 | 375.0 | 501.0 | 1,516.3 | ||||||
Margin | 40.7 | 17.6 | 75.2 | 98.1 | 231.6 | |||||
Selling and administrative expense | 43.7 | 43.4 | 49.3 | 55.4 | 191.8 | |||||
Net (gain) loss on disposition of equipment | (0.9) | (0.1) | 0.2 | (0.4) | (1.2) | |||||
Earnings (loss) from operations | (2.1) | (25.7) | 25.7 | 43.1 | 41.0 | |||||
Other costs | ||||||||||
Interest and foreign exchange | 11.1 | 9.6 | 10.2 | 12.4 | 43.3 | |||||
Net loss on extinguishment of debt | - | - | 4.8 | 1.5 | 6.3 | |||||
Earnings (loss) before income tax and earnings (loss) from unconsolidated affiliates | (13.2) | (35.3) | 10.7 | 29.2 | (8.6) | |||||
Income tax benefit | 7.3 | 21.8 | 6.9 | 4.2 | 40.2 | |||||
Earnings (loss) before earnings (loss) from unconsolidated affiliates | (5.9) | (13.5) | 17.6 | 33.4 | 31.6 | |||||
Earnings (loss) from unconsolidated affiliates | (0.8) | (0.4) | 2.4 | 2.3 | 3.5 | |||||
Net earnings (loss) | (6.7) | (13.9) | 20.0 | 35.7 | 35.1 | |||||
Net (earnings) loss attributable to noncontrolling interest | (3.3) | 4.8 | (0.3) | (3.9) | (2.7) | |||||
Net earnings (loss) attributable to Greenbrier | $ (10.0) | $ (9.1) | $ 19.7 | $ 31.8 | $ 32.4 | |||||
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 declared 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. |
"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 "believe", "build", "continue," "expect," "goal," "looking forward", "outlook," "position," "reduce," "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, our ability to grow market share and deliver future value to our shareholders, tax treatment, and other information regarding future performance and strategies and appear throughout this press release including in the headlines and the sections titled "Second Quarter Highlights," a "Business Update & Outlook," and "Supplemental Leasing Information." 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, governmental reaction thereto, and related economic disruptions (including, among other factors, supply disruptions, inflation, and increases in interest rates) will negatively impact our business. General inflation (including rising energy prices, interest rates and wages and other escalators), currency volatility and policy interventions in reaction to such events could have negative impacts on our business by increasing our operating and borrowing costs as well as decreasing the capital available for our customers to purchase our goods and services, among other factors. Our business may be negatively impacted as a result of armed conflict in Ukraine and related events. The risks to our business that may emerge include, among others, transportation disruptions in Europe, heightened inflation, cyber disruptions or attacks, higher manufacturing and borrowing costs, disruptions in supply chains and availability of raw materials, interruptions in manufacturing operations and disruptions in credit markets. Our backlog of railcar units and marine vessels 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
EBITDA is not a financial measure under generally accepted accounting principles (GAAP). This metric is a performance measurement tool used by rail supply companies and Greenbrier. You should not consider this metric in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because this metric is not a measure of financial performance under GAAP and is susceptible to varying calculations, the measure 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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/greenbrier-reports-second-quarter-results-301518696.html
SOURCE Greenbrier Companies, Inc.
FAQ
What were Greenbrier's earnings for Q2 FY22?
How much revenue did Greenbrier generate in Q2 FY22?
What is the backlog of orders for Greenbrier?
What is Greenbrier's current fleet utilization rate?
When will Greenbrier's next dividend be paid?
