Greenbrier Reports Third Quarter Results

Rhea-AI Summary

The Greenbrier Companies (NYSE: GBX) reported strong Q3 FY21 results with revenue of $450 million, a 65% increase from the previous quarter. The company achieved new railcar orders for 3,800 units worth $400 million, with a backlog of 24,800 units valued at $2.6 billion. Net earnings were $19.7 million, or $0.59 per diluted share. The formation of GBX Leasing aims to create stable cash flows. Liquidity remains robust at approximately $850 million. Greenbrier expects continued growth in Q4, driven by increased production rates and demand recovery.

Positive

• Revenue increased by 65% from Q2 to $450 million.
• New railcar orders of 3,800 units valued at $400 million.
• Net earnings of $19.7 million or $0.59 per diluted share.
• Formed GBX Leasing to create stable cash flows with initial funding of nearly $100 million.
• Liquidity of approximately $850 million, including $628 million in cash.
• 24,800-unit backlog valued at $2.6 billion.

Negative

• COVID-19 related expenses of $1.9 million for the quarter.
• Increased selling and administrative expenses of $49.2 million, up from $43.4 million.

LAKE OSWEGO, Ore., July 9, 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 third fiscal quarter ended May 31, 2021.

Third Quarter Highlights

• New railcar orders for 3,800 units valued at $400 million and deliveries of 3,300 units, resulted in a 1.2x book-to-bill. This is the second consecutive quarter that book-to-bill exceeded 1.0x. Orders included intermodal units, tank cars, boxcars and covered hoppers.
• Diversified new railcar backlog as of May 31, 2021 was 24,800 units with an estimated value of $2.6 billion.
• Liquidity of approximately $850 million, including $628 million in cash and $221 million of available borrowing capacity. Liquidity and $149 million of initiatives in progress total nearly $1 billion.
• COVID-19 related expenses for the quarter were $1.9 million (pre-tax) and $8.3 million (pre-tax) for the nine months ended May 31, 2021.
• Net earnings attributable to Greenbrier for the quarter were $19.7 million, or $0.59 per diluted share, on revenue of $450 million. Net earnings included $3.6 million ($0.10 per share), of loss on extinguishment of debt, net of tax.
• Adjusted net earnings attributable to Greenbrier for the quarter were $23.3 million or $0.69 per diluted share and adjusted EBITDA for the quarter was $53 million.
• GBX Leasing was formed in the quarter to create stable, tax-advantaged cash flows with initial railcar funding of nearly $100 million, under a $300 million non-recourse warehouse credit facility. GBX Leasing is consolidated in Greenbrier's financial statements, see supplemental information in this release.
• Debt maturities were extended in the quarter with the issuance of $374 million of senior convertible notes due in 2028 and retirement of $257 million of 2024 senior convertible notes.
• Repurchased $20 million of common stock in connection with the convertible note issuance. $100 million remains authorized under the share repurchase plan.
• Board declares a quarterly dividend of $0.27 per share, payable on August 18, 2021 to shareholders of record as of July 28, 2021 representing Greenbrier's 29^th consecutive quarterly dividend.

William A. Furman, Chairman & CEO commented, "Greenbrier's financial results for the third fiscal quarter reflect the steady recovery in our markets that we forecasted would occur in the second half of our fiscal year. Our COVID strategy launched in March 2020 has been very successful. We are executing well on plans to maintain a liquidity base and strong balance sheet as well as safely operate each of our facilities. All of this has been necessary to prepare for the now emerging recovery.  As positive momentum continues, we are seizing opportunities to resume the pursuit of scale we began during the two years prior to the pandemic. In the third fiscal quarter this included the formation of GBX Leasing and completion of a strategic debt refinancing that extended maturities on convertible notes by four years."

Furman added, "We are benefiting from the economic recovery in railcar manufacturing and leasing as expected. This is playing out through sequential monthly increases in manufacturing revenues and a meaningful increase in new order activity in our core North American markets.  The ability to ramp production capacity is integral to protecting Greenbrier's leadership position in the market.  New orders will not increase linearly, but we expect commercial activity to remain strong as our $2.6 billion backlog provides a baseload of orders to support the expanded operation of production lines and our leasing business."

Business Update & Outlook

Greenbrier's adherence to its core COVID strategy during the third fiscal quarter produced the best quarterly performance to date in fiscal 2021. Since March 2020, Greenbrier has practiced disciplined management to meet the realities of this once in 100 years pandemic. Operating and commercial momentum is building. In our domestic and international markets, Greenbrier's core COVID strategy was and continues to be:

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

Looking ahead, Greenbrier expects the fourth quarter to be the strongest performance of the year.  A full quarter of increased production rates and business activity creates positive momentum into fiscal 2022.

Financial Summary

	Q3 FY21	Q2 FY21	Sequential Comparison – Main Drivers
Revenue	$450.1M	$295.6M	65% higher deliveries reflecting increased production levels and overall improving demand environment
Gross margin	16.7%	6.0%	Primarily increased production rates in Manufacturing and favorable resolution of warranty & other contingencies in international operations
Selling and administrative	$49.2M	$43.4M	Increased consulting and employee-related costs including performance-based compensation expense
Adjusted EBITDA	$52.9M	($1.3M)	Higher operating earnings reflecting improving demand environment; See reconciliation on page 12
Net (earnings) loss attributable to noncontrolling interest	($0.3M)	$4.9M	Increased operating activity at GIMSA joint venture
Adjusted net earnings (loss) attributable to Greenbrier	$23.3M(1)	($9.1M)	Primarily increased activity across all business units and tax benefit from lease fleet investments and operating losses carried back to prior years with higher tax rates allowable under the CARES Act
Adjusted diluted EPS	$0.69(1)	($0.28)

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

Segment Summary

	Q3 FY21	Q2 FY21	Sequential Comparison – Main Drivers
Manufacturing
Revenue	$341.9M	$202.1M	Higher deliveries reflecting improving demand levels
Gross margin	14.5%	0.2%	Higher production & delivery and favorable resolution of warranty and other contingencies; Excluding these items, gross margin would be in the low double digits
Operating margin (1)	9.2%	(8.5%)
Deliveries (2)	2,800	1,700	Higher production rates
Wheels, Repair & Parts
Revenue	$80.9M	$71.6M	Increased demand levels across the network
Gross margin	8.9%	6.9%	Higher volumes driving improved performance
Operating margin (1)	5.2%	3.4%
Leasing & Services (including GBX Leasing)
Revenue	$27.3M	$21.9M	Revenue and margin include enhanced syndication financing activity
Gross margin	67.6%	56.6%
Operating margin (1) (3)	44.9%	29.3%
Fleet utilization	93.8%	94.8%

(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 third quarter 2021 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. 
Teleconference details are as follows:

• July 9, 2021
• 8:00 a.m. Pacific Daylight Time
• Phone: 1-888-317-6003 (Toll Free) 1-412-317-6061 (International), Entry Number "2776228"
• 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, repair, refurbishment and retrofitting services in North America through our wheels, repair & parts business unit.  Greenbrier manages 445,000 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. Together, GBXL and Greenbrier own a lease fleet of 8,700 railcars.  Learn more about Greenbrier at www.gbrx.com.

THE GREENBRIER COMPANIES, INC.
Consolidated Balance Sheets (In thousands, unaudited)
	May 31, 2021	February 28, 2021	November 30, 2020	August 31, 2020	May 31, 2020
Assets
Cash and cash equivalents	$       628,200	$       593,499	$       724,547	$       833,745	$       735,258
Restricted cash	8,689	8,614	8,547	8,342	8,704
Accounts receivable, net	274,792	236,171	216,220	230,488	261,629
Income tax receivable	75,135	62,103	24,448	9,109	-
Inventories	553,137	522,984	490,282	529,529	675,442
Leased railcars for syndication	154,017	109,287	51,087	107,671	136,144
Equipment on operating leases, net	446,888	445,451	445,542	350,442	355,841
Property, plant and equipment, net	676,010	687,468	696,333	711,524	719,155
Investment in unconsolidated affiliates	79,420	70,820	72,254	72,354	75,508
Intangibles and other assets, net	180,829	190,283	186,509	190,322	181,315
Goodwill	133,050	132,685	130,315	130,308	130,035
	$   3,210,167	$   3,059,365	$   3,046,084	$   3,173,834	$   3,279,031
Liabilities and Equity
Revolving notes	$       325,150	$       275,839	$       276,248	$       351,526	$       416,535
Accounts payable and accrued liabilities	480,373	448,571	434,138	463,880	488,969
Deferred income taxes	44,900	24,798	10,120	7,701	4,354
Deferred revenue	43,676	42,572	36,916	42,467	63,536
Notes payable, net	835,027	793,189	797,089	804,088	806,919
Contingently redeemable noncontrolling interest	30,323	30,037	30,711	31,117	30,611
Total equity – Greenbrier	1,286,763	1,268,502	1,280,407	1,293,043	1,291,221
Noncontrolling interest	163,955	175,857	180,455	180,012	176,886
Total equity	1,450,718	1,444,359	1,460,862	1,473,055	1,468,107
	$   3,210,167	$   3,059,365	$   3,046,084	$   3,173,834	$   3,279,031

 

THE GREENBRIER COMPANIES, INC.
Consolidated Statements of Income (In thousands, except per share amounts, unaudited)
	Three Months Ended May 31,				Nine Months Ended May 31,
	2021		2020		2021			2020
Revenue
Manufacturing	$        341,939		$       653,007		$        852,755			$     1,800,317
Wheels, Repair & Parts	80,871		82,024		218,050			259,857
Leasing & Services	27,333		27,526		77,949			95,590
	450,143		762,557		1,148,754			2,155,764
Cost of revenue
Manufacturing	292,464		562,793		775,125			1,567,014
Wheels, Repair & Parts	73,690		75,001		203,341			241,266
Leasing & Services	8,857		17,232		36,814			61,428
	375,011		655,026		1,015,280			1,869,708
Margin	75,132		107,531		133,474			286,056
Selling and administrative expense	49,239		49,494		136,371			158,455
Net (gain) loss on disposition of equipment	184		(8,775)		(765)			(19,431)
Earnings (loss) from operations	25,709		66,812		(2,132)			147,032
Other costs
Interest and foreign exchange	10,204		7,562		30,875			33,023
Net loss on extinguishment of debt	4,763		-		4,763			-
Earnings (loss) before income tax and earnings from unconsolidated affiliates	10,742		59,250		(37,770)			114,009
Income tax benefit (expense)	6,914		(24,421)		35,998			(37,878)
Earnings (loss) before earnings from     unconsolidated affiliates	17,656		34,829		(1,772)			76,131
Earnings from unconsolidated affiliates	2,379		1,040		1,257			3,764
Net earnings (loss)	20,035		35,869		(515)			79,895
Net (earnings) loss attributable to noncontrolling interest	(298)		(8,097)		1,215			(30,825)
Net earnings attributable to Greenbrier	$             19,737		$         27,772		$                700			$           49,070
Basic earnings per common share:	$                 0.61		$            0.85		$                0.02			$                1.50
Diluted earnings per common share:	$                  0.59		$            0.83		$                0.02			$                1.47
Weighted average common shares:
Basic	32,573		32,690		32,726			32,660
Diluted	33,605		33,478		33,747			33,414
Dividends per common share	$                  0.27		$                0.27		$                0.81			$                0.79

 

THE GREENBRIER COMPANIES, INC.
Consolidated Statements of Cash Flows (In thousands, unaudited)
			Nine Months Ended May 31,
			2021			2020
Cash flows from operating activities
Net earnings (loss)		$	(515)		$	79,895
Adjustments to reconcile net earnings (loss) provided by (used in)      operating activities:
Deferred income taxes			20,197			(11,450)
Depreciation and amortization			75,637			82,452
Net gain on disposition of equipment			(765)			(19,431)
Accretion of debt discount			4,639			4,102
Stock based compensation expense			12,468			8,265
Net loss on extinguishment of debt			4,763			-
Noncontrolling interest adjustments			343			2,826
Other			1,729			568
Decrease (increase) in assets:
Accounts receivable, net			(49,160)			110,431
Income tax receivable			(66,026)			-
Inventories			(92,294)			12,555
Leased railcars for syndication			(55,532)			(38,826)
Other assets			863			(59,212)
Increase (decrease) in liabilities:
Accounts payable and accrued liabilities			18,626			(77,243)
Deferred revenue			1,189			(5,900)
Net cash provided by (used in) operating activities			(123,838)			89,032
Cash flows from investing activities
Proceeds from sales of assets			12,156			78,521
Capital expenditures			(62,774)			(55,326)
Investments in and advances to/repayments from unconsolidated affiliates			674			(1,500)
Cash distribution from unconsolidated affiliates and other			652			11,273
Net cash provided by (used in) investing activities			(49,292)			32,968
Cash flows from financing activities
Net change in revolving notes with maturities of 90 days or less			147,571			214,932
Proceeds from revolving notes with maturities longer than 90 days			112,000			175,000
Repayments of revolving notes with maturities longer than 90 days			(286,000)			-
Proceeds from issuance of notes payable			373,750			-
Repayments of notes payable			(308,468)			(24,002)
Debt issuance costs			(14,067)			-
Repurchase of stock			(20,000)			-
Dividends			(26,882)			(26,344)
Investment by joint venture partner			7,000			-
Cash distribution to joint venture partner			(24,055)			(36,152)
Tax payments for net share settlement of restricted stock			(2,802)			(2,266)
Net cash provided by (used in) financing activities			(41,953)			301,168
Effect of exchange rate changes			9,885			(17,693)
Increase (decrease) in cash, cash equivalents and restricted cash			(205,198)			405,475
Cash and cash equivalents and restricted cash
Beginning of period			842,087			338,487
End of period		$	636,889		$	743,962
Balance Sheet Reconciliation
Cash and cash equivalents		$	628,200		$	735,258
Restricted cash			8,689			8,704
Total cash and cash equivalents and restricted cash as presented above		$	636,889		$	743,962

 

THE GREENBRIER COMPANIES, INC.
Supplemental Backlog and Delivery Information
			Three Months Ended
			May 31, 2021
Backlog Activity (units) (1)
Beginning backlog				24,900
Orders received				3,800
Production held as Leased railcars for syndication				(800)
Production sold directly to third parties				(3,100)
Ending backlog				24,800
Delivery Information (units) (1)
Production sold directly to third parties				3,100
Sales of Leased railcars for syndication				200
Total deliveries				3,300

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

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 90% of GBXL and consolidates it in Greenbrier's financial statements in the Leasing & Services segment.  Longwood was formed in 2018 by D. Stephen Menzies to pursue a range of commercial investments in equipment transportation markets following his successful growth of Trinity Rail's leasing business over many years.  GBXL adds 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.  During the quarter, an initial $300 million non-recourse warehouse credit facility was secured, and $129 million in fair market value of assets were acquired from Greenbrier's transaction flow.  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.  The intent is to use the asset-backed securities market to refinance the warehouse facility and to convert to permanent financing before 2025 as scale and portfolio balance are achieved.  Considerable tax benefits are generated from these investments, which are included in the consolidated financial results this year.

Key information for the consolidated Leasing & Services segment

(In Units)	May 31, 2021		February 28, 2021
Owned fleet	8,700		8,700
Managed fleet	445,000		445,000
Owned fleet utilization	94%		95%
	May 31, 2021		February 28, 2021
Equipment on operating lease	$                  446,888		$                  445,451
GBX Leasing non-recourse warehouse	$                    96,576		$                              -
Leasing non-recourse debt	202,815		204,722
Total Leasing non-recourse debt	$                  299,391		$                  204,722
Fleet leverage %(1)	67%		46%

(1)	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		Total
Revenue
Manufacturing	$    308,722		$    202,094		$    341,939		$     852,755
Wheels, Repair & Parts	65,556		71,623		80,871		218,050
Leasing & Services	28,711		21,905		27,333		77,949
	402,989		295,622		450,143		1,148,754
Cost of revenue
Manufacturing	280,890		201,771		292,464		775,125
Wheels, Repair & Parts	62,984		66,667		73,690		203,341
Leasing & Services	18,444		9,513		8,857		36,814
	362,318		277,951		375,011		1,015,280
Margin	40,671		17,671		75,132		133,474
Selling and administrative expense	43,707		43,425		49,239		136,371
Net (gain) loss on disposition of equipment	(922)		(27)		184		(765)
Earnings (loss) from operations	(2,114)		(25,727)		25,709		(2,132)
Other costs
Interest and foreign exchange	11,103		9,568		10,204		30,875
Net loss on extinguishment of debt	-		-		4,763		4,763
Earnings (loss) before income tax and earnings (loss) from unconsolidated affiliates	(13,217)		(35,295)		10,742		(37,770)
Income tax benefit	7,332		21,752		6,914		35,998
Earnings (loss) before earnings (loss) from unconsolidated affiliates	(5,885)		(13,543)		17,656		(1,772)
Earnings (loss) from unconsolidated affiliates	(744)		(378)		2,379		1,257
Net earnings (loss)	(6,629)		(13,921)		20,035		(515)
Net (earnings) loss attributable to noncontrolling interest	(3,343)		4,856		(298)		1,215
Net earnings (loss) attributable to Greenbrier	$        (9,972)		$        (9,065)		$       19,737		$            700
Basic earnings (loss) per common share (1)	$          (0.30)		$          (0.28)		$           0.61		$           0.02
Diluted earnings (loss) per common share (1)	$          (0.30)		$          (0.28)		$           0.59		$           0.02
Dividends per common share	$           0.27		$           0.27		$           0.27		$           0.81

(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 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
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)
	Total assets
	May 31, 2021		February 28, 2021
Manufacturing	$              1,413,590		$              1,313,819
Wheels, Repair & Parts	265,847		277,788
Leasing & Services	878,743		851,546
Unallocated, including cash	651,987		616,212
	$              3,210,167		$              3,059,365

 

THE GREENBRIER COMPANIES, INC.
Supplemental Information (In thousands, excluding backlog and delivery units, unaudited)
Reconciliation of Net earnings (loss) to Adjusted EBITDA
			Three Months Ended
			May 31, 2021		February 28, 2021
Net earnings (loss)			$                 20,035		$              (13,921)
Interest and foreign exchange			10,204		9,568
Income tax benefit			(6,914)		(21,752)
Depreciation and amortization			24,769		24,822
Net loss on extinguishment of debt			4,763		-
Adjusted EBITDA			$                52,857		$                 (1,283)

 

Reconciliation of Net earnings (loss) attributable to Greenbrier to Adjusted net earnings (loss) attributable to Greenbrier

			Three Months Ended
			May 31, 2021		February 28, 2021
Net earnings (loss) attributable to Greenbrier			$                19,737		$                (9,065)
Net loss on extinguishment of debt, net of tax (1)			3,596		-
Adjusted net earnings (loss) attributable to                                                                      Greenbrier			$               23,333		$                (9,065)

(1)	Net of tax of $1,167

 

Reconciliation of Diluted earnings (loss) per share to Adjusted diluted earnings (loss) per share

				Three Months Ended
				May 31, 2021		February 28, 2021
Diluted earnings (loss) per share				$                   0.59		$                  (0.28)
Net loss on extinguishment of debt, net of tax				0.10		-
Adjusted diluted earnings (loss) per share				$                   0.69		$                  (0.28)
Weighted average shares outstanding				33,605		32,810

 "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," "anticipate," "continue," "estimate" "expect," "goal," "intend," "maintain," "outlook," "position," "prepare," "reduce," "will," and similar expressions to identify forward-looking statements. These forward-looking statements include, without limitation, statements about backlog, leasing performance, financing, 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 sections titled "Third Quarter Highlights," "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. (1) We are unable to predict when, how, or with what magnitude COVID-19, variants thereof, and governmental reaction thereto, 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. We may not be able to effectively participate in the economic recovery following the pandemic, if any. 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 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 (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.

 

View original content:https://www.prnewswire.com/news-releases/greenbrier-reports-third-quarter-results-301328488.html

SOURCE Greenbrier Companies, Inc.

FAQ

What were Greenbrier's financial results for Q3 FY21?

Greenbrier reported revenue of $450 million, a 65% increase from the previous quarter, with net earnings of $19.7 million.

How many new railcar orders did Greenbrier receive in Q3 FY21?

Greenbrier received new railcar orders for 3,800 units valued at $400 million.

What is the value of Greenbrier's backlog as of May 31, 2021?

Greenbrier's backlog is 24,800 units valued at approximately $2.6 billion.

What is the current liquidity status of Greenbrier?

Greenbrier has approximately $850 million in liquidity, which includes $628 million in cash and $221 million of available borrowing capacity.

What is the dividend declared by Greenbrier for Q3 FY21?

Greenbrier declared a quarterly dividend of $0.27 per share, payable on August 18, 2021.