Solid execution drove record revenue in fiscal
2023
New railcar backlog value of $3.8 billion is highest in almost 8 years
Full year operating cash flow of $71 million
LAKE
OSWEGO, Ore., Oct. 25,
2023 /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 fourth fiscal quarter and
year ended August 31, 2023.
Fourth Quarter and Full Year Highlights
- High lease fleet utilization of 98% on 13,400 unit fleet.
- Received new railcar orders for 15,300 units valued at
$1.9 billion in the quarter. Order
activity highlights Greenbrier's strong lease origination
capabilities balanced with its direct sales expertise.
- Diversified new railcar backlog as of August 31, 2023 was 30,900 units with an
estimated value of $3.8 billion.
- Fourth quarter deliveries of 7,000 units and full year
deliveries of 26,000 units.
- Net earnings attributable to Greenbrier for the quarter were
$25 million, or $0.77 per diluted share, on revenue of
$1 billion. Results include
$5 million, or $0.15 per share, net of tax, of exit related
costs associated with our ongoing capacity rationalization
initiative.
- For the quarter, Adjusted net earnings attributable to
Greenbrier of $30 million or
$0.92 per diluted share.
- Fiscal 2023 Net earnings attributable to Greenbrier were
$63 million, or $1.89 per diluted share, on record revenue of
$3.9 billion. Results include
$37 million, or $1.08 per share, net of tax, of exit related
costs associated with capacity rationalization.
- For the year, Adjusted net earnings attributable to Greenbrier
of $99 million or $2.97 per diluted share.
- Adjusted EBITDA for the quarter was $97
million, or 9.5% of revenue and was $340 million, or 8.6% of revenue for the
year.
- Repurchased 0.2 million shares for nearly $8 million in the quarter and 1.9 million shares
for $57 million (at an average price
of $29 / share) for the full year.
$46 million remaining under current
share repurchase program.
- Board declared a quarterly dividend of $0.30 per share, payable on November 29, 2023 to shareholders of record as of
November 8, 2023 representing
Greenbrier's 38th consecutive quarterly dividend
"During the fiscal year, Greenbrier met the evolving needs of
our customers to maintain our market-leading position. At the same
time, we advanced our strategy to drive operational improvements
and realize margin enhancement," said Lorie
L. Tekorius, CEO and President. "Importantly, we
delivered an outstanding commercial performance against a dynamic
economic backdrop throughout the year. Greenbrier enters fiscal
2024 with our largest backlog value in almost 8 years. This
provides excellent near-term revenue visibility and further
confidence in our strategy. As we continue to execute the strategic
plan we shared at our Investor Day in April, we expect to improve
performance in fiscal 2024. Deployed capital will enhance
operational efficiencies and grow our lease fleet as we ambitiously
pursue our goal to increase recurring
revenue."
Business Update & Fiscal 2024 Guidance
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
- We have devoted a portion of our flexible manufacturing
footprint to large railcar refurbishment programs for multiple
customers that are accretive to earnings although not included in
deliveries. Additionally, our insourcing initiative utilizes space
previously used for new railcar production capacity.
- Revenue of $3.4 – $3.7 billion
- Capital expenditures of approximately $190 million in Manufacturing and $15 million in Maintenance Services
- Gross leasing investment of approximately $335 million in Leasing & Management Services
which includes 2024 capital expenditures and transfers of railcars
into the lease fleet that were produced onto the balance sheet in
2023
- Proceeds from equipment sales are expected to be approximately
$80 million
Financial Summary
|
Q4
FY23
|
Q3
FY23
|
Sequential
Comparison – Main Drivers
|
Revenue
|
$1,017.4M
|
$1,038.1M
|
Continued strong
Manufacturing performance
partially offset by seasonally lower
Maintenance Services volumes
|
Gross margin
|
$126.7M
|
$128.1M
|
Improved Maintenance
Services profitability
|
Gross margin
%
|
12.5 %
|
12.3 %
|
Selling and
administrative
|
$59.6M
|
$63.3M
|
Lower employee-related
and consulting costs
|
Adjusted
EBITDA
|
$96.8M
|
$96.9M
|
|
Earnings from
unconsolidated affiliates
|
$0.6M
|
$2.4M
|
Primarily lower
earnings from Brazil JV
|
Adjusted net earnings
attributable to
Greenbrier
|
$29.7M(1)
|
$34.0M(1)
|
Higher tax expense and
lower earnings from
unconsolidated affiliates
|
Adjusted diluted
EPS
|
$0.92(1)
|
$1.02(1)
|
|
|
|
(1)
|
Excludes exit related
costs of $4.9 million ($0.15 per share), net of tax, in Q4 and
$12.7 million ($0.38 per share), net of tax, in Q3. Reconciliations
for Adjusted metrics can be found in Supplemental
Information.
|
Segment Summary
|
Q4
FY23
|
Q3
FY23
|
Sequential
Comparison – Main Drivers
|
Manufacturing
|
Revenue
|
$872.4M
|
$870.2M
|
Higher deliveries
partially offset by product mix
|
Gross
margin
|
$81.2M
|
$83.7M
|
Profitability modestly
impacted by product mix and
peso fluctuations
|
Gross margin
%
|
9.3 %
|
9.6 %
|
Earnings from
operations (1)
|
$53.6M
|
$44.1M
|
Improved operating
earnings reflect fewer exit related
costs
|
Operating margin
% (2)
|
6.1 %
|
5.1 %
|
Deliveries
(3)
|
6,800
|
6,400
|
Primarily mix shift to
more direct sales
|
Maintenance
Services
|
Revenue
|
$100.0M
|
$122.9M
|
Seasonally lower wheel
volume
|
Gross margin
%
|
15.0 %
|
10.7 %
|
Stronger pricing and
profitability in wheels and
components
|
Earnings from
operations
|
$13.6M
|
$11.0M
|
Operating margin
% (2)
|
13.6 %
|
9.0 %
|
Leasing &
Management Services
|
Revenue
|
$45.0M
|
$45.0M
|
Stable fleet activity
and performance
|
Gross margin
%
|
67.8 %
|
69.6 %
|
Earnings from
operations
|
$21.1M
|
$25.9M
|
Primarily fewer
equipment sale transactions
|
Operating margin
% (2)
|
47.0 %
|
57.6 %
|
Owned fleet
(units)
|
13,400
|
12,500
|
|
Fleet
utilization
|
98.3 %
|
98.6 %
|
|
|
|
(1)
|
Includes pre-tax exit
related costs of $6.6 million in Q4 and $17.0 million in
Q3.
|
(2)
|
See supplemental
segment information in Supplemental Information.
|
(3)
|
Excludes Brazil
deliveries which are not consolidated into Manufacturing revenue
and margins.
|
Investor Day Financial Target Update
Greenbrier announced long-term financial targets in April 2023 at its first Investor Day.
Progress towards those targets is shown below.
|
Starting
Point
(LTM Feb. 28,
2023)
|
Target
|
FY
2023
|
Commentary
|
Recurring
revenue
|
$113 million
|
More than double
from starting point
|
$125 million
|
10% growth
|
Aggregate gross margin
%
|
10.7 %
|
Mid-teens by
FY26
|
11.2 %
|
50 bps
improvement
|
Adjusted Return on
invested capital (ROIC)(1)
|
8.3 %
|
10 – 14% by
FY26
|
7.7 %
|
Starting point
benefitted
from large cash tax
refund from CARES Act
in Q4 22
|
|
|
(1)
|
Reconciliations for
ROIC metrics can be found in Supplemental Information.
|
Conference Call
Greenbrier will host a teleconference to discuss its fourth
quarter and fiscal year results. In conjunction with this news
release, Greenbrier has posted a supplemental earnings presentation
to our website. Teleconference details are as follows:
- October 25, 2023
- 8:00 a.m. Pacific Daylight
Time
- Phone: 1-888-317-6003 (Toll Free), 1-412-317-6061
(International), Entry Number "2454093"
- 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 13,400 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)
|
|
|
August
31,
2023
|
May
31,
2023
|
February
28,
2023
|
November 30,
2022
|
August
31,
2022
|
Assets
|
|
|
|
|
|
Cash and
cash equivalents
|
$
281.7
|
$
321.4
|
$
379.9
|
$
263.3
|
$
543.0
|
Restricted
cash
|
21.0
|
20.1
|
19.7
|
17.2
|
16.1
|
Accounts
receivable, net
|
529.9
|
533.6
|
571.5
|
495.6
|
501.2
|
Income tax
receivable
|
42.2
|
29.8
|
22.4
|
28.9
|
39.8
|
Inventories
|
823.6
|
888.0
|
910.6
|
874.9
|
815.3
|
Leased
railcars for syndication
|
187.4
|
119.4
|
102.5
|
272.5
|
111.1
|
Equipment
on operating leases, net
|
1,000.0
|
941.0
|
891.8
|
836.2
|
770.9
|
Property,
plant and equipment, net
|
619.2
|
600.4
|
618.4
|
617.6
|
645.2
|
Investment
in unconsolidated affiliates
|
88.7
|
86.4
|
83.4
|
94.2
|
92.5
|
Intangibles and other assets, net
|
255.8
|
253.3
|
224.0
|
189.0
|
189.1
|
Goodwill
|
128.9
|
128.3
|
128.3
|
127.7
|
127.3
|
|
$
3,978.4
|
$
3,921.7
|
$
3,952.5
|
$
3,817.1
|
$
3,851.5
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
Revolving
notes
|
$
297.1
|
$
280.0
|
$
310.3
|
$
290.5
|
$
296.6
|
Accounts
payable and accrued liabilities
|
743.5
|
741.6
|
722.6
|
676.5
|
725.1
|
Deferred
income taxes
|
114.1
|
88.3
|
70.2
|
49.8
|
68.6
|
Deferred
revenue
|
46.2
|
56.6
|
73.0
|
53.2
|
35.3
|
Notes
payable, net
|
1,311.7
|
1,320.3
|
1,327.0
|
1,301.5
|
1,269.1
|
|
|
|
|
|
|
Contingently
redeemable noncontrolling
interest
|
55.6
|
54.1
|
27.5
|
27.7
|
27.7
|
|
|
|
|
|
|
Total
equity – Greenbrier
|
1,254.6
|
1,232.7
|
1,277.3
|
1,265.8
|
1,276.9
|
Noncontrolling interest
|
155.6
|
148.1
|
144.6
|
152.1
|
152.2
|
Total
equity
|
1,410.2
|
1,380.8
|
1,421.9
|
1,417.9
|
1,429.1
|
|
$
3,978.4
|
$
3,921.7
|
$
3,952.5
|
$
3,817.1
|
$
3,851.5
|
THE GREENBRIER
COMPANIES, INC.
|
Consolidated Statements of
Income
|
(In millions, except
number of shares which are reflected in thousands and per share
amounts, unaudited)
|
|
|
Years
Ended
August
31,
|
|
2023
|
|
2022
|
|
2021
|
|
Revenue
|
|
|
|
|
|
|
Manufacturing
|
$
3,357.7
|
|
$
2,476.6
|
|
$
1,311.1
|
|
Maintenance Services
|
406.4
|
|
347.7
|
|
298.3
|
|
Leasing
& Management Services
|
179.9
|
|
153.4
|
|
138.5
|
|
|
3,944.0
|
|
2,977.7
|
|
1,747.9
|
|
Cost of revenue
|
|
|
|
|
|
|
Manufacturing
|
3,083.4
|
|
2,300.9
|
|
1,189.2
|
|
Maintenance Services
|
364.0
|
|
322.0
|
|
280.4
|
|
Leasing
& Management Services
|
55.5
|
|
48.8
|
|
46.7
|
|
|
3,502.9
|
|
2,671.7
|
|
1,516.3
|
|
|
|
|
|
|
|
|
Margin
|
441.1
|
|
306.0
|
|
231.6
|
|
|
|
|
|
|
|
|
Selling and
administrative expense
|
235.3
|
|
225.2
|
|
191.8
|
|
Net gain on disposition
of equipment
|
(17.3)
|
|
(37.2)
|
|
(1.2)
|
|
Asset impairment,
disposal, and exit costs, net
|
46.7
|
|
–
|
|
–
|
|
Earnings from operations
|
176.4
|
|
118.0
|
|
41.0
|
|
|
|
|
|
|
|
|
Other costs
|
|
|
|
|
|
|
Interest and foreign
exchange
|
85.4
|
|
57.4
|
|
43.3
|
|
Net loss on
extinguishment of debt
|
–
|
|
–
|
|
6.3
|
|
Earnings (loss) before
income tax and earnings from
unconsolidated affiliates
|
91.0
|
|
60.6
|
|
(8.6)
|
|
Income tax (expense)
benefit
|
(24.6)
|
|
(18.1)
|
|
40.2
|
|
Earnings before
earnings from unconsolidated affiliates
|
66.4
|
|
42.5
|
|
31.6
|
|
Earnings from
unconsolidated affiliates
|
9.2
|
|
11.3
|
|
3.5
|
|
|
|
|
|
|
|
|
Net
earnings
|
75.6
|
|
53.8
|
|
35.1
|
|
Net earnings
attributable to noncontrolling interest
|
(13.1)
|
|
(6.9)
|
|
(2.7)
|
|
|
|
|
|
|
|
|
Net earnings attributable to
Greenbrier
|
$
62.5
|
|
$
46.9
|
|
$
32.4
|
|
|
|
|
|
|
|
|
Basic earnings per
common share:
|
$
1.95
|
|
$
1.44
|
|
$
0.99
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share:
|
$
1.89
|
|
$
1.40
|
|
$
0.96
|
|
|
|
|
|
|
|
|
Weighted average
common shares:
|
|
|
|
|
|
|
Basic
|
31,983
|
|
32,569
|
|
32,648
|
|
Diluted
|
33,799
|
|
33,631
|
|
33,665
|
|
|
|
|
|
|
|
|
Dividends per common
share
|
$
1.11
|
|
$
1.08
|
|
$
1.08
|
|
THE GREENBRIER
COMPANIES, INC.
|
Consolidated
Statements of Cash Flows
|
(In millions,
unaudited)
|
|
Years
Ended
August 31,
|
2023
|
|
2022
|
|
2021
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
75.6
|
|
$
53.8
|
|
$
35.1
|
|
|
|
Adjustments to
reconcile net earnings to net cash provided by
(used in) operating activities:
|
|
|
|
|
|
|
|
|
Deferred income taxes
|
7.2
|
|
12.9
|
|
51.1
|
|
|
|
Depreciation and amortization
|
106.3
|
|
102.0
|
|
100.7
|
|
|
|
Net gain on disposition of equipment
|
(17.3)
|
|
(37.2)
|
|
(1.2)
|
|
|
|
Stock based compensation expense
|
12.1
|
|
15.5
|
|
14.7
|
|
|
|
Asset
impairment, disposal, and exit costs, net
|
46.7
|
|
–
|
|
–
|
|
|
|
Net loss on extinguishment of debt
|
–
|
|
–
|
|
6.3
|
|
|
|
Accretion of debt discount
|
–
|
|
–
|
|
7.1
|
|
|
|
Noncontrolling interest adjustments
|
8.4
|
|
1.6
|
|
2.3
|
|
|
|
Other
|
3.7
|
|
3.8
|
|
2.4
|
|
|
|
Decrease (increase) in assets:
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
(14.6)
|
|
(198.2)
|
|
(82.1)
|
|
|
|
Income tax receivable
|
(2.4)
|
|
72.3
|
|
(103.0)
|
|
|
|
Inventories
|
(17.2)
|
|
(267.9)
|
|
(166.5)
|
|
|
|
Leased railcars for syndication
|
(123.7)
|
|
(40.6)
|
|
(11.9)
|
|
|
|
Other assets
|
(51.6)
|
|
(28.1)
|
|
(5.8)
|
|
|
|
Increase (decrease) in liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
16.3
|
|
165.3
|
|
109.9
|
|
|
|
Deferred revenue
|
21.7
|
|
(5.6)
|
|
0.4
|
|
|
|
Net
cash provided by (used in) operating activities
|
71.2
|
|
(150.4)
|
|
(40.5)
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Proceeds from sales of assets
|
78.8
|
|
155.5
|
|
15.9
|
|
|
|
Capital expenditures
|
(362.1)
|
|
(380.7)
|
|
(139.0)
|
|
|
|
Investments in and advances to unconsolidated affiliates
|
(3.5)
|
|
(2.3)
|
|
–
|
|
|
|
Cash
distribution from unconsolidated affiliates and other
|
6.8
|
|
3.5
|
|
5.3
|
|
|
|
Net
cash used in investing activities
|
(280.0)
|
|
(224.0)
|
|
(117.8)
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Net
change in revolving notes with maturities of 90 days or
less
|
29.8
|
|
(101.3)
|
|
197.4
|
|
|
|
Proceeds from revolving notes with maturities longer than 90
days
|
220.0
|
|
35.0
|
|
112.0
|
|
|
|
Repayments
of revolving notes with maturities longer than 90 days
|
(255.0)
|
|
–
|
|
(287.0)
|
|
|
|
Proceeds
from issuance of notes payable
|
75.0
|
|
398.3
|
|
391.9
|
|
|
|
Repayments
of notes payable
|
(36.8)
|
|
(23.4)
|
|
(337.8)
|
|
|
|
Debt
issuance costs
|
(0.6)
|
|
(7.3)
|
|
(22.0)
|
|
|
|
Repurchase
of stock
|
(56.9)
|
|
–
|
|
(20.0)
|
|
|
|
Dividends
|
(36.1)
|
|
(35.8)
|
|
(35.6)
|
|
|
|
Cash
distribution to joint venture partner
|
(13.0)
|
|
(16.9)
|
|
(25.3)
|
|
|
|
Investment
by joint venture partner
|
–
|
|
–
|
|
7.0
|
|
|
|
Tax
payments for net share settlement of restricted stock
|
(2.6)
|
|
(3.7)
|
|
(3.3)
|
|
|
|
Net cash
provided by (used in) financing activities
|
(76.2)
|
|
244.9
|
|
(22.7)
|
|
|
|
Effect of
exchange rate changes
|
28.6
|
|
17.2
|
|
10.3
|
|
|
|
Decrease
in cash, cash equivalents and restricted cash
|
(256.4.3)
|
|
(112.3)
|
|
(170.7)
|
|
|
|
Cash and cash
equivalents and restricted cash
|
|
|
|
|
|
|
|
|
Beginning
of period
|
559.1
|
|
671.4
|
|
842.1
|
|
|
|
End of
period
|
$
302.7
|
|
$
559.1
|
|
$
671.4
|
|
|
|
Balance Sheet
Reconciliation:
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
$
281.7
|
|
$
543.0
|
|
$
646.8
|
|
|
|
Restricted
cash
|
21.0
|
|
16.1
|
|
24.6
|
|
|
|
Total cash
and cash equivalents and restricted cash
|
$
302.7
|
|
$
559.1
|
|
$
671.4
|
|
|
|
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 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
|
|
Year Ended
|
|
Greenbrier Lease
Fleet (Units)
|
August 31,
2023
|
|
May 31,
2023
|
|
August 31,
2023
|
|
Beginning
balance
|
12,500
|
|
12,300
|
|
12,200
|
|
Railcars
added
|
1,800
|
|
1,400
|
|
6,900
|
|
Railcars
sold / scrapped
|
(900)
|
|
(1,200)
|
|
(5,700)
|
|
Ending
balance
|
13,400
|
|
12,500
|
|
13,400
|
|
|
|
Year Ended
August 31, 2023
|
|
Recurring
Revenue
|
$
124.5
|
|
|
|
August 31,
2023
|
|
May 31,
2023
|
Equipment on operating
lease(2)
|
$
1,000.0
|
|
$
941.0
|
|
|
|
|
Non-recourse
warehouse
|
$
139.9
|
|
$
119.3
|
ABS non-recourse
notes
|
307.5
|
|
310.3
|
Non-recourse term
loan
|
332.7
|
|
335.8
|
Total Leasing
non-recourse debt
|
$
780.1
|
|
$
765.4
|
|
|
|
|
Fleet leverage
%(3)
|
78 %
|
|
81 %
|
|
|
(1)
|
Owned fleet includes
Leased railcars for syndication
|
(2)
|
Equipment on operating
lease assets not securing Leasing non-recourse term loan support
the $600 million U.S. revolver
|
(3)
|
Total Leasing
non-recourse debt / Equipment on operating lease
|
THE GREENBRIER
COMPANIES, INC.
|
Supplemental
Information
|
(In millions, except
per share amounts, unaudited)
|
|
Operating Results by
Quarter for 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
|
|
THE GREENBRIER
COMPANIES, INC.
|
Supplemental
Information
|
(In millions, except per share amounts,
unaudited)
|
|
Operating Results by
Quarter for 2022 are as follows:
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
Total
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
$
452.5
|
|
$
555.7
|
|
$
650.9
|
|
$ 817.5
|
|
$
2,476.6
|
|
Maintenance Services
|
72.4
|
|
86.6
|
|
101.5
|
|
87.2
|
|
347.7
|
|
Leasing
& Management Services
|
25.8
|
|
40.5
|
|
41.1
|
|
46.0
|
|
153.4
|
|
|
550.7
|
|
682.8
|
|
793.5
|
|
950.7
|
|
2,977.7
|
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
421.6
|
|
535.0
|
|
611.3
|
|
733.0
|
|
2,300.9
|
|
Maintenance Services
|
71.2
|
|
81.7
|
|
91.1
|
|
78.0
|
|
322.0
|
|
Leasing
& Management Services
|
10.3
|
|
11.3
|
|
14.8
|
|
12.4
|
|
48.8
|
|
|
503.1
|
|
628.0
|
|
717.2
|
|
823.4
|
|
2,671.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin
|
47.6
|
|
54.8
|
|
76.3
|
|
127.3
|
|
306.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expense
|
44.3
|
|
54.7
|
|
57.4
|
|
68.8
|
|
225.2
|
|
Net gain on disposition
of equipment
|
(8.5)
|
|
(25.1)
|
|
(0.7)
|
|
(2.9)
|
|
(37.2)
|
|
Earnings from
operations
|
11.8
|
|
25.2
|
|
19.6
|
|
61.4
|
|
118.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Other costs
|
|
|
|
|
|
|
|
|
|
|
Interest and foreign
exchange
|
12.6
|
|
11.8
|
|
14.9
|
|
18.1
|
|
57.4
|
|
Earnings (loss) before
income tax and earnings
from unconsolidated affiliates
|
(0.8)
|
|
13.4
|
|
4.7
|
|
43.3
|
|
60.6
|
|
Income tax (expense)
benefit
|
1.4
|
|
(3.2)
|
|
(1.1)
|
|
(15.2)
|
|
(18.1)
|
|
Earnings before
earnings from unconsolidated
affiliates
|
0.6
|
|
10.2
|
|
3.6
|
|
28.1
|
|
42.5
|
|
Earnings from
unconsolidated affiliates
|
5.0
|
|
1.0
|
|
4.0
|
|
1.3
|
|
11.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
5.6
|
|
11.2
|
|
7.6
|
|
29.4
|
|
53.8
|
|
Net (earnings) loss
attributable to
noncontrolling interest
|
5.2
|
|
1.6
|
|
(4.5)
|
|
(9.2)
|
|
(6.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to
Greenbrier
|
$
10.8
|
|
$
12.8
|
|
$
3.1
|
|
$
20.2
|
|
$
46.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share
(1)
|
$
0.33
|
|
$
0.39
|
|
$
0.10
|
|
$
0.62
|
|
$
1.44
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
(1)
|
$
0.32
|
|
$
0.38
|
|
$
0.09
|
|
$
0.60
|
|
$
1.40
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per common
share
|
$
0.27
|
|
$
0.27
|
|
$
0.27
|
|
$
0.27
|
|
$
1.08
|
|
|
|
(1)
|
Quarterly amounts may
not total to the year-to-date amount as each period is calculated
discretely.
|
THE GREENBRIER
COMPANIES, INC.
|
Supplemental
Information
|
(In millions,
unaudited)
|
|
Segment
Information
|
|
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
|
|
|
|
|
Three months ended May
31, 2023:
|
|
|
|
|
|
|
|
Revenue
|
|
Earnings (loss) from
operations
|
|
|
External
|
|
Intersegment
|
|
Total
|
|
External
|
|
Intersegment
|
|
Total
|
|
Manufacturing
|
$
870.2
|
|
$
73.3
|
|
$
943.5
|
|
$
44.1
|
|
$
7.9
|
|
$
52.0
|
|
Maintenance
Services
|
122.9
|
|
11.0
|
|
133.9
|
|
11.0
|
|
-
|
|
11.0
|
|
Leasing
& Management Services
|
45.0
|
|
0.3
|
|
45.3
|
|
25.9
|
|
-
|
|
25.9
|
|
Eliminations
|
-
|
|
(84.6)
|
|
(84.6)
|
|
-
|
|
(7.9)
|
|
(7.9)
|
|
Corporate
|
-
|
|
-
|
|
-
|
|
(30.3)
|
|
-
|
|
(30.3)
|
|
|
$
1,038.1
|
|
$
-
|
|
$
1,038.1
|
|
$
50.7
|
|
$
-
|
|
$
50.7
|
|
|
|
Total assets
|
|
|
August
31,
2023
|
|
May 31,
2023
|
|
Manufacturing
|
$
1,847.0
|
|
$
1,891.1
|
|
Maintenance
Services
|
294.4
|
|
295.1
|
|
Leasing &
Management Services
|
1,458.1
|
|
1,325.6
|
|
Unallocated, including
cash
|
378.9
|
|
409.9
|
|
|
$
3,978.4
|
|
$
3,921.7
|
|
Backlog and Delivery
Information
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
August 31,
2023
|
August 31,
2023
|
|
Backlog Activity
(units) (1)
|
|
|
|
|
|
|
Beginning
backlog
|
23,400
|
|
29,500
|
|
Orders
received
|
15,300
|
|
30,000
|
|
Production held on the
Balance Sheet
|
(1,700)
|
|
(6,800)
|
|
Production sold
directly to third parties
|
(6,100)
|
|
(21,800)
|
|
Ending
backlog
|
30,900
|
|
30,900
|
|
|
|
|
|
|
Delivery Information
(units) (1)
|
|
|
|
|
Produced &
Delivered from Backlog
|
6,100
|
|
21,800
|
|
Delivered from Balance
Sheet
|
900
|
|
4,200
|
|
Total
deliveries
|
7,000
|
|
26,000
|
|
|
|
(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 Adjusted EBITDA
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
|
|
|
August 31,
2023
|
|
May 31,
2023
|
|
August 31,
2023
|
|
|
Net earnings
|
$
29.4
|
|
$
26.7
|
|
$
75.6
|
|
|
Interest and foreign
exchange
|
21.4
|
|
22.8
|
|
85.4
|
|
|
Income tax
expense
|
12.9
|
|
3.6
|
|
24.6
|
|
|
Depreciation and
amortization
|
26.5
|
|
26.9
|
|
106.3
|
|
|
Asset impairment,
disposal, and exit related costs, net
|
6.6
|
|
16.9
|
|
48.4
|
|
|
Adjusted
EBITDA
|
$
96.8
|
|
$
96.9
|
|
$
340.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Return on
Invested Capital (ROIC) Calculation
|
|
|
|
|
Year Ended
|
|
Last Twelve Months
Ended
|
|
|
|
|
August 31,
2023
|
|
February 28,
2023
|
|
Earnings from
operations
|
$
176.4
|
|
$
143.6
|
|
Earnings from
unconsolidated affiliates
|
9.2
|
|
11.5
|
|
Asset impairment,
disposal, and exit related costs, net
|
48.7
|
|
25.1
|
|
Adjusted net operating
profit before tax
|
$
234.3
|
|
$
180.2
|
|
Cash taxes received
(paid)
|
(23.0)
|
|
37.2
|
|
Adjusted net operating
profit after tax
|
$
211.3
|
|
$
217.4
|
|
|
|
|
|
|
|
|
|
Average Trailing Five
Quarters
|
|
|
August 31,
2023
|
|
February 28,
2023
|
|
Cash and cash
equivalents
|
$
357.8
|
|
$
444.5
|
|
Minimum operating
cash
|
40.0
|
|
40.0
|
|
Cash in excess of $40
million
|
$
317.8
|
|
$
404.5
|
|
|
|
|
|
|
Revolving
notes
|
$
294.9
|
|
$
298.6
|
|
Notes payable,
net
|
1,305.9
|
|
1,261.9
|
|
Total funded
debt
|
$
1,600.8
|
|
$
1,560.5
|
|
|
|
|
|
|
Total Equity
|
$
1,450.5
|
|
$
1,448.4
|
|
|
|
|
|
|
Total invested
capital(1)
|
$
2,733.5
|
|
$
2,604.4
|
|
|
|
|
|
|
Adjusted
ROIC(2)
|
7.7 %
|
|
8.3 %
|
|
|
|
(1)
|
Invested capital is the
sum of Total funded debt, Total Equity less Cash in excess of $40
million.
|
(2)
|
Adjusted ROIC is
calculated by dividing Adjusted net operating profit after tax by
Total invested capital.
|
THE GREENBRIER COMPANIES, INC.
|
Supplemental
Information
|
(In millions,
unaudited)
|
|
Reconciliation of
Net earnings attributable to Greenbrier to Adjusted net earnings
attributable to Greenbrier
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
August 31,
2023
|
|
May 31,
2023
|
|
August 31,
2023
|
|
Net earnings
attributable to Greenbrier
|
$
24.8
|
|
$
21.3
|
|
$
62.5
|
|
Asset disposal and exit
related costs, net
|
4.9
|
(1)
|
12.77
|
(2)
|
36.6
|
(3)
|
Adjusted net earnings
attributable to
Greenbrier
|
$
29.7
|
|
$
34.0
|
|
$
99.1
|
|
|
|
(1)
|
Net of tax of $2.6
million
|
(2)
|
Net of tax of $4.3
million
|
(3)
|
Net of tax of $13.0
million
|
Reconciliation of
Diluted earnings per share to Adjusted diluted earnings per
share
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
August 31,
2023
|
|
May 31,
2023
|
|
August 31,
2023
|
Diluted earnings per
share
|
$
0.77
|
|
$
0.64
|
|
$
1.89
|
Asset disposal and exit
related costs, net
|
0.15
|
|
0.38
|
|
1.08
|
Adjusted diluted
earnings per share
|
$
0.92
|
|
$
1.02
|
|
$
2.97
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
32,707
|
|
33,571
|
|
33,799
|
Share Calculations
for Adjusted diluted earnings per share
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
August 31,
2023
|
|
May 31,
2023
|
|
August 31,
2023
|
Basic Shares
|
30,904
|
|
31,757
|
|
31,983
|
Dilutive effect of
performance awards
|
979
|
|
992
|
|
992
|
Dilutive effect of
convertible notes due 2024
|
824
|
|
822
|
|
824
|
Diluted weighted
average shares outstanding
|
32,707
|
|
33,571
|
|
33,799
|
Debt
Summary
|
|
$ in
millions
|
August 31,
2023
|
|
May 31,
2023
|
|
Total Leasing
non-recourse debt
|
$
780.1
|
|
$
765.4
|
|
Total other
debt
|
846.9
|
|
854.2
|
|
|
$
1,627.0
|
|
$
1,619.6
|
|
Debt discount and
issuance costs (1)
|
(18.2)
|
|
(19.3)
|
|
Total consolidated
debt
|
$
1,608.8
|
|
$
1,600.3
|
|
|
|
(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
including in the headlines and the sections titled "Fourth Quarter
Highlights," "Fiscal Year 2023 Highlights," "Business Update &
Fiscal 2024 Guidance," 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: 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 ROIC, 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 ROIC is calculated by dividing the trailing four
quarters of Adjusted net operating profit after tax by the average
trailing five quarters of invested capital. Adjusted net operating
profit after tax is defined as Earnings from operations, plus
Earnings from unconsolidated affiliates, excluding the impact
associated with items we do not believe are indicative of our core
business or which affect comparability, less cash paid for income
taxes, net. Total invested capital is defined as Revolving notes,
plus Notes payable, plus Total equity, less cash in excess of
$40 million. We believe Adjusted ROIC
is useful to investors as it quantifies how efficiently we
generated operating income relative to the capital we have invested
in the business.
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-strong-fourth-quarter-and-fiscal-year-2023-results-301966862.html
SOURCE The Greenbrier Companies, Inc.