Greenbrier Reports Strong Fourth Quarter and Fiscal Year 2023 Results

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.

Cision 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.

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