GREENBRIER COMPANIES INC false 0000923120 0000923120 2024-07-08 2024-07-08

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

Form 8-K

 

 

Current Report

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 8, 2024

 

 

THE GREENBRIER COMPANIES, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Oregon   001-13146   93-0816972

(State of

Incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

One Centerpointe Drive, Suite 200, Lake Oswego, OR 97035

(Address of principal executive offices) (Zip Code)

(503) 684-7000

Registrant’s telephone number, including area code

Former name or former address, if changed since last report: N/A

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock without par value   GBX   New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 


Item 2.02

Results of Operations and Financial Condition

On July 8, 2024, The Greenbrier Companies, Inc. (the “Company”) issued a press release reporting the Company’s financial results for the third fiscal quarter ended May 31, 2024. A copy of the release is furnished herewith as Exhibit 99.1 and is incorporated into this Item 2.02 by reference.

The information contained in this Item 2.02 of this Current Report on Form 8-K, including the exhibit, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any filings made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.

 

Item 9.01

Financial Statements and Exhibits

(d) Exhibits

 

Exhibit

No.

   Description
99.1    Press Release dated July 8, 2024 of The Greenbrier Companies, Inc. reporting the Company’s financial results for the third fiscal quarter ended May 31, 2024.
104    Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

    THE GREENBRIER COMPANIES, INC.
Date: July 8, 2024     By:  

/s/ Lorie L. Tekorius

      Lorie L. Tekorius
      President, Chief Executive Officer

Exhibit 99.1

 

LOGO    LOGO
One Centerpointe Drive, Suite 200, Lake Oswego, Oregon 97035 503-684-7000    www.gbrx.com

 

For release: July 8, 2024 8:30 a.m. EDT    Contact:     Justin Roberts, Investor Relations
      Jack Isselmann, Media Relations
      Ph: 503-684-7000

Greenbrier Reports Third Quarter Results

Diluted EPS of $1.06 grows to highest level in over 4.5 years

New railcar orders of 6,300 units valued at $830 million

Gross margin of 15%

Lake Oswego, Oregon, July 8, 2024 – 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, 2024.

Third Quarter Highlights

 

   

Grew lease fleet by 600 units to 15,200 units with lease fleet utilization of nearly 99%.

 

   

Generated Operating cash flow of $84 million.

 

   

Diverse new railcar orders for 6,300 units valued at $830 million and delivered 5,400 units, resulting in new railcar backlog of 29,400 units with an estimated value of $3.7 billion.

 

   

Net earnings attributable to Greenbrier for the quarter were $34 million, or $1.06 per diluted share, on revenue of $820 million.

 

   

EBITDA for the quarter of $104 million, reached its highest level in over 4.5 years, equaling 13% of revenue.

 

   

Board declared a quarterly dividend of $0.30 per share, payable on August 13, 2024 to shareholders of record as of July 23, 2024, representing Greenbrier’s 41st consecutive quarterly dividend.

“Greenbrier continued positive momentum in the third quarter of fiscal 2024,” said Lorie L. Tekorius, CEO and President. “Consolidated gross margin in the mid-teens for a third consecutive quarter drove strong EPS performance. Results reflect our continued focus on efficiencies gained over the last several quarters and execution by the team that extends across the full reach of Greenbrier’s business. Our outlook is optimistic as we expect revenues to grow based on the pace of our delivery schedule. Greenbrier’s leading market position, robust new railcar backlog and a steadily growing recurring revenue stream from the leasing business provide a strong foundation for the future. We continue to create long-term shareholder value across varying market conditions.”

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Greenbrier Reports Third Quarter Results (Cont.)    Page   2

 

Business Update & Outlook

Based on current trends and production schedules, Greenbrier is updating guidance for fiscal 2024:

 

   

Deliveries of 23,500 – 24,000 units, including approximately 1,400 units in Brazil

 

   

Revenue of $3.5 – $3.6 billion

 

   

Consolidated gross margin percentage increased to the mid-teens

 

   

Capital expenditures of approximately $150 million in Manufacturing and $15 million in Maintenance Services

 

   

Gross leasing investment of approximately $340 million in Leasing & Management Services, which includes 2024 capital expenditures and transfers of railcars into the lease fleet that were manufactured and subsequently held on the balance sheet in 2023

 

   

Proceeds from equipment sales are expected to be approximately $75 million

Financial Summary

 

     Q3 FY24     Q2 FY24    

Sequential Comparison – Main Drivers

Revenue

   $ 820.2M     $ 862.7M     Primarily timing of new railcar deliveries

Gross margin

   $ 123.8M     $ 122.2M     Improved operating performance in Manufacturing and Maintenance Services and increased syndication activity

Gross margin %

     15.1     14.2

Selling and administrative expense

   $ 59.3M     $ 63.6M     Lower employee-related costs including performance-based compensation expense

EBITDA(1)

   $ 104.0M     $ 95.0M     Sustained strong operating performance as described above

Net earnings attributable to noncontrolling interest

   $ 6.7M     $ 0.2M     Partners’ share of consolidated JV’s operating results

Net earnings attributable to Greenbrier

   $ 33.9M     $ 33.4M    

Diluted EPS

   $ 1.06     $ 1.03    

 

(1)

See reconciliation at conclusion of Supplemental Information.

 

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Greenbrier Reports Third Quarter Results (Cont.)    Page   3

 

Segment Summary

 

     Q3 FY24     Q2 FY24    

Sequential Comparison – Main Drivers

Manufacturing

Revenue

   $ 685.1M     $ 735.8M     Timing of new railcar deliveries

Gross margin %

     10.9     10.8   Continued focus on execution

Earnings from operations

   $ 54.2M     $ 58.8M     Primarily attributable to timing of revenue and deliveries

Operating margin % (1)

     7.9     8.0

Deliveries (2)

     5,000       5,300    

Maintenance Services

Revenue

   $ 69.9M     $ 75.2M     Lower hours and bill rates in repair locations

Gross margin %

     11.7     8.0  

Earnings from operations

   $ 5.9M     $ 4.6M     Favorable product mix in wheels and performance in parts

Operating margin % (1)

     8.4     6.1  

Leasing & Management Services

Revenue

   $ 65.2M     $ 51.7M     Increased syndication activity including externally sourced activity (railcars purchased from third parties with the intent to syndicate)

Gross margin %

     62.9     70.8   Externally sourced syndication activity generates margin dollars but a lower margin %

Earnings from operations

   $ 40.5M     $ 33.2M     Increased syndication activity and gains from equipment sales as part of ongoing fleet optimization

Operating margin % (1)

     62.1     64.2   Lower gross margin % attributable to externally sourced railcar syndication activity

Owned fleet (units)

     15,200       14,600     Disciplined portfolio construction

Fleet utilization

     98.7     98.5  

 

(1)

See supplemental segment information in Supplemental Information.

(2)

Excludes Brazil deliveries which are not consolidated into Manufacturing revenue and margins.

Conference Call

Greenbrier will host a teleconference to discuss its third quarter 2024 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. Teleconference details are as follows:

 

   

July 8, 2024

 

   

8:00 a.m. Pacific Daylight Time

 

   

Phone: 1-888-317-6003 (Toll Free), 1-412-317-6061 (International), Entry Number “4941482”

 

   

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 15,200 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.

 

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Greenbrier Reports Third Quarter Results (Cont.)    Page   4
THE GREENBRIER COMPANIES, INC.

 

CONSOLIDATED BALANCE SHEETS

(In millions, unaudited)

 

     May 31,
2024
     February 29,
2024
     November 30,
2023
     August 31,
2023
     May 31,
2023
 

Assets

              

Cash and cash equivalents

   $ 271.6      $ 252.0      $ 307.3      $ 281.7      $ 321.4  

Restricted cash

     20.2        20.0        14.0        21.0        20.1  

Accounts receivable, net

     488.5        519.1        458.7        529.9        533.6  

Income tax receivable

     20.0        20.9        10.5        42.2        29.8  

Inventories

     812.4        827.0        883.6        823.6        888.0  

Leased railcars for syndication

     155.3        134.4        159.8        187.4        119.4  

Equipment on operating leases, net

     1,226.9        1,160.5        1,095.8        1,000.0        941.0  

Property, plant and equipment, net

     648.3        636.1        618.1        619.2        600.4  

Investment in unconsolidated affiliates

     90.3        90.0        89.4        88.7        86.4  

Intangibles and other assets, net

     254.3        255.6        248.9        255.8        253.3  

Goodwill

     128.0        128.0        128.6        128.9        128.3  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   $ 4,115.8      $ 4,043.6      $ 4,014.7      $ 3,978.4      $ 3,921.7  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities and Equity

              

Revolving notes

   $ 348.4      $ 300.8      $ 279.4      $ 297.1      $ 280.0  

Accounts payable and accrued liabilities

     652.9        649.3        640.9        743.5        741.6  

Deferred income taxes

     82.9        79.7        85.2        114.1        88.3  

Deferred revenue

     74.0        81.5        42.2        46.2        56.6  

Notes payable, net

     1,413.9        1,421.8        1,479.4        1,311.7        1,320.3  

Contingently redeemable noncontrolling interest

     56.3        56.0        56.5        55.6        54.1  

Total equity – Greenbrier

     1,329.1        1,299.9        1,274.0        1,254.6        1,232.7  

Noncontrolling interest

     158.3        154.6        157.1        155.6        148.1  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total equity

     1,487.4        1,454.5        1,431.1        1,410.2        1,380.8  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   $ 4,115.8      $ 4,043.6      $ 4,014.7      $ 3,978.4      $ 3,921.7  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

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Greenbrier Reports Third Quarter Results (Cont.)    Page   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)

 

     Three Months Ended
May 31,
    Nine Months Ended
May 31,
 
     2024     2023     2024     2023  

Revenue

        

Manufacturing

   $ 685.1     $ 870.2     $ 2,096.8     $ 2,485.3  

Maintenance Services

     69.9       122.9       228.9       306.4  

Leasing & Management Services

     65.2       45.0       166.0       134.9  
  

 

 

   

 

 

   

 

 

   

 

 

 
     820.2       1,038.1       2,491.7       2,926.6  

Cost of revenue

        

Manufacturing

     610.5       786.5       1,867.6       2,292.2  

Maintenance Services

     61.7       109.8       202.5       279.0  

Leasing & Management Services

     24.2       13.7       54.3       41.0  
  

 

 

   

 

 

   

 

 

   

 

 

 
     696.4       910.0       2,124.4       2,612.2  

Margin

     123.8       128.1       367.3       314.4  

Selling and administrative expense

     59.3       63.3       179.2       175.7  

Net gain on disposition of equipment

     (7.8     (2.3     (12.6     (15.2

Asset impairment, disposal, and exit costs

     —        16.4       —        40.6  
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings from operations

     72.3       50.7       200.7       113.3  

Other costs

        

Interest and foreign exchange

     24.7       22.8       72.5       64.0  
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings before income tax and earnings from unconsolidated affiliates

     47.6       27.9       128.2       49.3  

Income tax expense

     (10.7     (3.6     (30.0     (11.7
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings before earnings from unconsolidated affiliates

     36.9       24.3       98.2       37.6  

Earnings from unconsolidated affiliates

     3.7       2.4       9.2       8.6  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings

     40.6       26.7       107.4       46.2  

Net earnings attributable to noncontrolling interest

     (6.7     (5.4     (8.9     (8.5
  

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings attributable to Greenbrier

   $ 33.9     $ 21.3     $ 98.5     $ 37.7  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per common share:

   $ 1.09     $ 0.67     $ 3.17     $ 1.17  

Diluted earnings per common share:

   $ 1.06     $ 0.64     $ 3.05     $ 1.13  

Weighted average common shares:

        

Basic

     31,131       31,757       31,091       32,346  

Diluted

     32,021       33,571       32,456       33,344  

Dividends per common share

   $ 0.30     $ 0.27     $ 0.90     $ 0.81  

 

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Greenbrier Reports Third Quarter Results (Cont.)    Page   6
THE GREENBRIER COMPANIES, INC.

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions, unaudited)

 

     Nine Months Ended
May 31,
 
     2024     2023  

Cash flows from operating activities

    

Net earnings

   $ 107.4     $ 46.2  

Adjustments to reconcile net earnings to net cash provided by operating activities:

    

Deferred income taxes

     (33.1     (18.4

Depreciation and amortization

     82.3       79.8  

Net gain on disposition of equipment

     (12.6     (15.2

Stock based compensation expense

     12.2       8.8  

Asset impairment, disposal, and exit costs

     —        40.6  

Noncontrolling interest adjustments

     1.7       2.8  

Other

     3.1       2.8  

Decrease (increase) in assets:

    

Accounts receivable, net

     43.3       (16.1

Income tax receivable

     22.2       10.0  

Inventories

     6.4       (80.7

Leased railcars for syndication

     (29.8     (57.3

Other assets

     2.4       (42.9

Increase (decrease) in liabilities:

    

Accounts payable and accrued liabilities

     (94.2     8.3  

Deferred revenue

     27.1       32.5  
  

 

 

   

 

 

 

Net cash provided by operating activities

     138.4       1.2  
  

 

 

   

 

 

 

Cash flows from investing activities

    

Proceeds from sales of assets

     67.9       76.3  

Capital expenditures

     (324.7     (253.9

Investments in and advances to / repayments from unconsolidated affiliates

     —        (3.5

Cash distribution from unconsolidated affiliates and other

     2.5       6.3  
  

 

 

   

 

 

 

Net cash used in investing activities

     (254.3     (174.8
  

 

 

   

 

 

 

Cash flows from financing activities

    

Net change in revolving notes with maturities of 90 days or less

     19.0       (11.5

Proceeds from revolving notes with maturities longer than 90 days

     176.9       220.0  

Repayments of revolving notes with maturities longer than 90 days

     (145.8     (230.0

Proceeds from issuance of notes payable

     180.5       75.0  

Repayments of notes payable

     (78.9     (27.1

Debt issuance costs

     (2.8     (0.2

Repurchase of stock

     (1.3     (48.0

Dividends

     (29.1     (26.7

Cash distribution to joint venture partner

     (7.2     (8.4

Tax payments for net share settlement of restricted stock

     (5.2     (2.3
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     106.1       (59.2
  

 

 

   

 

 

 

Effect of exchange rate changes

     (1.1     15.2  

Decrease in cash, cash equivalents and restricted cash

     (10.9     (217.6

Cash and cash equivalents and restricted cash

    

Beginning of period

     302.7       559.1  
  

 

 

   

 

 

 

End of period

   $ 291.8     $ 341.5  
  

 

 

   

 

 

 

Balance Sheet Reconciliation:

    

Cash and cash equivalents

   $ 271.6     $ 321.4  

Restricted cash

     20.2       20.1  
  

 

 

   

 

 

 

Total cash and cash equivalents and restricted cash

   $ 291.8     $ 341.5  
  

 

 

   

 

 

 

 

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Greenbrier Reports Third Quarter Results (Cont.)    Page   7
THE GREENBRIER COMPANIES, INC.

 

SUPPLEMENTAL LEASING INFORMATION

(In millions, except owned 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 revenue and tax-advantaged cash flows, however in the short-term it reduces Greenbrier’s Manufacturing revenue and margin as a result of deferring revenue recognition.

During the April 2023 Investor Day, Greenbrier provided a long-term target to more than double recurring revenue from leasing and management fees by investing up to $300 million net annually for the next five years. Recurring revenue is defined as Leasing & Management Services revenue excluding the impact of syndication transactions.

Key information for the Leasing & Management Services segment:

 

    Three Months Ended  
Greenbrier Lease Fleet (Units)(1)    May 31, 
2024
     February 29, 
2024
 

Beginning balance

    14,600       14,100  

Railcars added

    2,700       2,400  

Railcars sold / scrapped

    (2,100     (1,900
 

 

 

   

 

 

 

Ending balance

    15,200       14,600  
 

 

 

   

 

 

 
   
    May 31,
2024
    February 29,
2024
 

Equipment on operating lease(2)

  $  1,226.9     $  1,160.5  
 

 

 

   

 

 

 

Non-recourse warehouse

  $ 146.0     $ 89.2  

ABS non-recourse notes

    475.4       479.4  

Non-recourse term loan

    323.5       326.6  
 

 

 

   

 

 

 

Total Leasing non-recourse debt

  $ 944.9     $ 895.2  
 

 

 

   

 

 

 

Fleet leverage %(3)(4)

    77     77

 

(1)

Owned fleet includes Leased railcars for syndication

(2)

Equipment on operating lease assets not securing Leasing non-recourse term loan support the $600 million U.S. revolver

(3)

Total Leasing non-recourse debt / Equipment on operating lease

(4)

Fleet assets are leveraged at Fair Market Value based on independent appraisals while they are shown at net book value on Greenbrier’s Consolidated Balance Sheet


Greenbrier Reports Third Quarter Results (Cont.)    Page   8
THE GREENBRIER COMPANIES, INC.

 

SUPPLEMENTAL INFORMATION

(In millions, except per share amounts, unaudited)

Operating Results by Quarter for Fiscal 2024 are as follows:

 

     First     Second     Third     Total  

Revenue

        

Manufacturing

   $  675.9     $  735.8     $  685.1     $  2,096.8  

Maintenance Services

     83.8       75.2       69.9       228.9  

Leasing & Management Services

     49.1       51.7       65.2       166.0  
  

 

 

   

 

 

   

 

 

   

 

 

 
     808.8       862.7       820.2       2,491.7  

Cost of revenue

        

Manufacturing

     600.9       656.2       610.5       1,867.6  

Maintenance Services

     71.6       69.2       61.7       202.5  

Leasing & Management Services

     15.0       15.1       24.2       54.3  
  

 

 

   

 

 

   

 

 

   

 

 

 
     687.5       740.5       696.4       2,124.4  

Margin

     121.3       122.2       123.8       367.3  

Selling and administrative expense

     56.3       63.6       59.3       179.2  

Net loss (gain) on disposition of equipment

     0.1       (4.9     (7.8     (12.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings from operations

     64.9       63.5       72.3       200.7  

Other costs

        

Interest and foreign exchange

     23.2       24.6       24.7       72.5  
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings before income tax and earnings from unconsolidated affiliates

     41.7       38.9       47.6       128.2  

Income tax expense

     (10.0     (9.3     (10.7     (30.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings before earnings from unconsolidated affiliates

     31.7       29.6       36.9       98.2  

Earnings from unconsolidated affiliates

     1.5       4.0       3.7       9.2  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings

     33.2       33.6       40.6       107.4  

Net earnings attributable to noncontrolling interest

     (2.0     (0.2     (6.7     (8.9
  

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings attributable to Greenbrier

   $ 31.2     $ 33.4     $ 33.9     $ 98.5  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per common share (1)

   $ 1.00     $ 1.08     $ 1.09     $ 3.17  

Diluted earnings per common share (1)

   $ 0.96     $ 1.03     $ 1.06     $ 3.05  

Dividends per common share

   $ 0.30     $ 0.30     $ 0.30     $ 0.90  

 

(1) 

Quarterly amounts may not total to the year-to-date amount as each period is calculated discretely.


Greenbrier Reports Third Quarter Results (Cont.)    Page   9
THE GREENBRIER COMPANIES, INC.

 

SUPPLEMENTAL INFORMATION

(In millions, except per share amounts, unaudited)

Operating Results by Quarter for Fiscal 2023 are as follows:

 

     First     Second     Third     Fourth     Total  

Revenue

          

Manufacturing

   $ 646.5     $ 968.6     $ 870.2     $ 872.4     $ 3,357.7  

Maintenance Services

     85.5       98.0       122.9       100.0       406.4  

Leasing & Management Services

     34.5       55.4       45.0       45.0       179.9  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     766.5       1,122.0       1,038.1       1,017.4       3,944.0  

Cost of revenue

          

Manufacturing

     604.5       901.2       786.5       791.2       3,083.4  

Maintenance Services

     79.6       89.6       109.8       85.0       364.0  

Leasing & Management Services

     12.9       14.4       13.7       14.5       55.5  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     697.0       1,005.2       910.0       890.7       3,502.9  

Margin

     69.5       116.8       128.1       126.7       441.1  

Selling and administrative expense

     53.4       59.0       63.3       59.6       235.3  

Net gain on disposition of equipment

     (3.3     (9.6     (2.3     (2.1     (17.3

Asset impairment, disposal, and exit costs, net

     24.2       —        16.4       6.1       46.7  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings (loss) from operations

     (4.8     67.4       50.7       63.1       176.4  

Other costs

          

Interest and foreign exchange

     19.6       21.6       22.8       21.4       85.4  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings (loss) before income tax and earnings from unconsolidated affiliates

     (24.4     45.8       27.9       41.7       91.0  

Income tax (expense) benefit

     3.8       (11.9     (3.6     (12.9     (24.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings (loss) before earnings from unconsolidated affiliates

     (20.6     33.9       24.3       28.8       66.4  

Earnings from unconsolidated affiliates

     3.3       2.9       2.4       0.6       9.2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings (loss)

     (17.3     36.8       26.7       29.4       75.6  

Net (earnings) loss attributable to noncontrolling interest

     0.6       (3.7     (5.4     (4.6     (13.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings (loss) attributable to Greenbrier

   $ (16.7   $ 33.1   $ 21.3     $ 24.8     $ 62.5  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings (loss) per common share (1)

   $ (0.51   $ 1.01     $ 0.67     $ 0.80     $ 1.95  

Diluted earnings (loss) per common share (1)

   $ (0.51   $ 0.97     $ 0.64     $ 0.77     $ 1.89  

Dividends per common share

   $ 0.27     $ 0.27     $ 0.27     $ 0.30     $ 1.11  

 

(1) 

Quarterly amounts may not total to the year-to-date amount as each period is calculated discretely.


Greenbrier Reports Third Quarter Results (Cont.)    Page   10
THE GREENBRIER COMPANIES, INC.

 

SUPPLEMENTAL INFORMATION

(In millions, unaudited)

Segment Information

 

Three months ended May 31, 2024:

 

       
     Revenue     Earnings (loss) from operations  
     External      Intersegment     Total     External     Intersegment     Total  

Manufacturing

   $ 685.1      $ 70.8     $ 755.9     $ 54.2     $ 11.9     $ 66.1  

Maintenance Services

     69.9        16.9       86.8       5.9       —        5.9  

Leasing & Management Services

     65.2        0.2       65.4       40.5       —        40.5  

Eliminations

     —         (87.9     (87.9     —        (11.9     (11.9

Corporate

     —         —        —        (28.3     —        (28.3
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   $ 820.2      $ —      $ 820.2     $ 72.3     $ —      $ 72.3  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Three months ended February 29, 2024:

 

       
     Revenue     Earnings (loss) from operations  
     External      Intersegment     Total     External     Intersegment     Total  

Manufacturing

   $ 735.8      $ 61.5     $ 797.3     $ 58.8     $ 3.7     $ 62.5  

Maintenance Services

     75.2        9.1       84.3       4.6       —        4.6  

Leasing & Management Services

     51.7        0.3       52.0       33.2       0.1       33.3  

Eliminations

     —         (70.9     (70.9     —        (3.8     (3.8

Corporate

     —         —        —        (33.1     —        (33.1
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   $ 862.7      $ —      $ 862.7     $ 63.5     $ —      $ 63.5  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     Total assets  
      May 31, 
2024
      February 29, 
2024
 

Manufacturing

   $ 1,812.5      $ 1,814.5  

Maintenance Services

     286.7        309.5  

Leasing & Management Services

     1,669.1        1,592.2  

Unallocated, including cash

     347.5        327.4  
  

 

 

    

 

 

 
   $ 4,115.8      $ 4,043.6  
  

 

 

    

 

 

 

BACKLOG AND DELIVERY INFORMATION

(Unaudited)

 

     Three Months Ended  
   May 31,
2024
 

Backlog Activity (units) (1)

  

Beginning backlog

     29,200  

Orders received

     6,300  

Production held on the Balance Sheet

     (2,400

Production sold to third parties

     (3,700
  

 

 

 

Ending backlog

     29,400  
  

 

 

 

Delivery Information (units) (1)

  

Direct sales

     3,700  

Sale of Leased railcars for syndication

     1,700  
  

 

 

 

Total deliveries

     5,400  
  

 

 

 

 

(1)

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

 

- More -


Greenbrier Reports Third Quarter Results (Cont.)    Page   11
THE GREENBRIER COMPANIES, INC.

 

SUPPLEMENTAL INFORMATION

(In millions, unaudited)

Reconciliation of Net earnings to EBITDA

 

     Three Months Ended  
      May 31, 
2024
      February 29, 
2024
 

Net earnings

   $ 40.6      $ 33.6  

Interest and foreign exchange

     24.7        24.6  

Income tax expense

     10.7        9.3  

Depreciation and amortization

     28.0        27.5  
  

 

 

    

 

 

 

EBITDA

   $ 104.0      $ 95.0  
  

 

 

    

 

 

 

 

Debt Summary

 

     
                        
     May 31,
2024
     February 29,
2024
 

Total Leasing non-recourse debt

   $ 944.9      $ 895.2  

Total other debt

     835.0        846.0  
  

 

 

    

 

 

 
     1,779.9        1,741.2  

Debt discount and issuance costs

     (17.6      (18.6
  

 

 

    

 

 

 

Total consolidated debt

   $ 1,762.3      $ 1,722.6  
  

 

 

    

 

 

 

 

- More -


Greenbrier Reports Third Quarter Results (Cont.)    Page   12

 

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 “approximately,” “are” “backlog,” “believe,” “continue,” “drive,” “estimate,” “expect,” “grow,” “momentum,” “ongoing,” “optimistic,” “position,” “recurring,” “schedule,” “stable,” “strategy,” “strong,” “sustainable,” “target,” and similar expressions to identify forward-looking statements. These forward-looking statements include, without limitation, statements about backlog and other orders, leasing performance, leasing strategy, financing, cash flow, tax treatment, and other information regarding future performance and strategies and appear throughout this press release. These forward-looking statements are not guarantees of future performance and are subject to certain risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements. Factors that might cause such a difference include, but are not limited to, the following: an economic downturn and economic uncertainty; inflation (including rising energy prices, interest rates, wages and other escalators) and policy reactions thereto (including actions by central banks); disruptions in the supply of materials and components used in the production of our products; and the war in Ukraine and related events. 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 Quarterly Reports on Form 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.

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 before Interest and foreign exchange, Income tax expense, Depreciation and amortization. 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.

 

###

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Document and Entity Information
Jul. 08, 2024
Cover [Abstract]  
Entity Registrant Name GREENBRIER COMPANIES INC
Amendment Flag false
Entity Central Index Key 0000923120
Document Type 8-K
Document Period End Date Jul. 08, 2024
Entity Incorporation State Country Code OR
Entity File Number 001-13146
Entity Tax Identification Number 93-0816972
Entity Address, Address Line One One Centerpointe Drive
Entity Address, Address Line Two Suite 200
Entity Address, City or Town Lake Oswego
Entity Address, State or Province OR
Entity Address, Postal Zip Code 97035
City Area Code (503)
Local Phone Number 684-7000
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Pre Commencement Tender Offer false
Pre Commencement Issuer Tender Offer false
Security 12b Title Common Stock without par value
Trading Symbol GBX
Security Exchange Name NYSE
Entity Emerging Growth Company false

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