LAKE OSWEGO, Ore., Oct. 25, 2016/PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE: GBX) today reported financial results for its fourth fiscal quarter and full year ended August 31, 2016.

Fourth Quarter Highlights

  • Net earnings attributable to Greenbrier for the quarter were $33.6 million, or $1.06per diluted share, on revenue of $595.2 million.
  • Adjusted EBITDA for the quarter was $104.4 million, or 17.5% of revenue.
  • Diversified orders for 2,300 new railcars were received during this quarter, valued at over $200 million, or an average price of approximately $87,000per railcar.
  • New railcar backlog as of August 31, 2016was 27,500 units with an estimated value of $3.19 billion(average unit sale price of $116,000). Backlog reflects a 1,200 unit reduction resulting from customer settlements that yield favorable economic and other considerations.
  • New railcar deliveries totaled 4,600 units for the quarter, compared to 4,300 units for the quarter ended May 31, 2016.
  • Marine backlog as of August 31, 2016was approximately $114 million.
  • Board declared a quarterly dividend of $0.21per share, payable on December 1, 2016to shareholders as of November 10, 2016.

Fiscal Year 2016 Highlights

  • Net earnings were $183.2 million, or $5.73per diluted share, on record revenue of $2.68 billion.
  • Record Adjusted EBITDA was $474.0 million, or 17.7% of revenue, compared to 16.7% of revenue in fiscal 2015.
  • New railcar deliveries totaled 20,300 units.
  • Orders totaled 7,500 units valued over $700 millionacross a broad range of railcar types.
  • Cash provided by operating activities increased 72% to over $330 million.
  • Net Funded Debt : LTM EBITDA ratio improved to 0.2x from 0.5x in fiscal 2015.
  • Nearly $57 millionreturned to shareholders through dividend and share repurchases.

Progress on Longer Term Financial Goals

  • Fourth quarter aggregate gross margin, was 20.1%, consistent with our goal of at least 20% gross margin by the second half of fiscal 2016.
  • We achieved an ROIC of 24.8% in fiscal 2016, in line with our target of 25.0%, and an improvement from the 23.7% achieved in fiscal 2015.

William A. Furman, Chairman and CEO, said, 'We delivered strong results for the fourth quarter and fiscal 2016. We ended the year with a strong balance sheet, ample liquidity and very little net debt. This positions Greenbrier to continue to invest internationally in high ROIC markets, as well as successfully navigate through less robust North American market conditions. We addressed industry challenges during fiscal 2016 as we encountered a weaker market in North America. Our employees successfully executed our plan for the year. We appreciate their hard work along with the confidence and trust of our customers as we have diversified and grown internationally.'

Furman continued, 'Entering fiscal 2017, our diversified backlog provides us with strong visibility, while we remain adaptable and prepared for market recovery and growth. Recently, we worked with customers to resolve commercial terms related to 1,200 sand cars. Under these arrangements, Greenbrier received meaningful monetary and other valuable economic consideration. Our deep customer relationships are advantageous in the current market conditions as we work to achieve mutually beneficial solutions.'

'Internationally, we are creating a global network that enables Greenbrier to capture share in emerging railcar markets where freight car markets are stronger. These include the nations of the Gulf Cooperation Council (GCC), Africa, Eurasia and Latin America. We are making new investments that extend our core competency in freight railcar building, engineering and aftermarket services for all railroad gauges in these new markets.' Furman added, 'In August, we acquired a 19.5% ownership stake in the railcar casting operations of Amsted-Maxion Cruzeiro which raised our direct and indirect interest in railcar manufacturer Greenbrier-Maxion to 35%, and expands our manufacturing presence in Brazil. In September, we began fulfillment of the 1,200 tank car order placed by Saudi Railway Company (SAR) in early fiscal 2016. Most recently, we announced the formation of Greenbrier-Astra Rail that will create a world-class European railcar business, capitalizing on demand in Western Europewhere the aging railcar fleet will enter a replacement cycle in the next few years. It provides a strong value-added platform for our customers in Western Europe, as well as a launch pad for other business in Eurasia and the GCC.'

Furman concluded, 'In the year ahead, a moderating railcar replacement cycle in North Americawill favorably position well-capitalized companies like Greenbrier to seize opportunities in the market, which often emerge suddenly. We remain committed to our overall strategy of investing for future growth and generating long-term value for our shareholders with an emphasis on solid ROIC.'

Business Outlook

Based on current business trends, industry forecasts and production schedules for fiscal 2017, Greenbrier believes:

  • Deliveries will be approximately 14,000 - 16,000 units
  • Revenue will be $2.0- $2.4 billion
  • Diluted EPS will be in the range of $3.25- $3.75

As noted in the 'Safe Harbor' statement, there are risks to achieving this guidance. Certain orders and backlog in this release are subject to customary documentation and completion of terms.

Financial Summary

Q4 FY16

Q3 FY16

Sequential Comparison - Main Drivers

Revenue

$595.2M

$612.9M

Down 2.9% primarily due to lower volume of sales from acquired railcar portfolio

Gross margin

20.1%

20.7%

Down 60 bps primarily due to product mix changes and lower scrap pricing

Selling and

administrative expense

$40.6M

$43.3M

Down 6.2% due to Q3 including higher long-term incentive compensation

Net gain on disposition

of equipment

$4.5M

$0.3M

Increase primarily reflects insurance recovery proceeds from 2015 losses

Adjusted EBITDA

$104.4M

$99.5M

Stronger operating cash flow

Effective tax rate

24.1%

27.9%

Reflects a change in the geographic mix of earnings

Net earnings attributable

to noncontrolling interest

$26.8M

$24.2M

Driven by timing of deliveries and higher margin from our GIMSA JV

Net earnings attributable

to Greenbrier

$33.6M

$35.4M

Diluted EPS

$1.06

$1.12

Segment Summary

Q4 FY16

Q3 FY16

Sequential Comparison - Main Drivers

Manufacturing

Revenue

$484.6M

$458.5M

Up 5.7% due to higher deliveries

Gross margin

21.0%

23.1%

Down 210 bps primarily due to a change in product mix

Operating margin

18.5%

20.2%

Deliveries

4,600

4,300

Wheels & Parts

Revenue

$74.8M

$78.4M

Down 4.6% primarily attributable to lower wheel and component volumes

Gross margin

7.0%

11.0%

Down 400 bps primarily due to a less favorable product mix and continued challenging operating environment

Operating margin

5.7%

7.4%

Leasing & Services

Revenue

$35.8M

$76.0M

Decline due to lower volume of sales from acquired railcar portfolio

Gross margin

35.5%

16.8%

Up due to lower volume of sales from acquired railcar portfolio, which is dilutive

Operating margin

25.3%

10.9%

Lease fleet utilization

91.0%

94.9%

Impacted by off-lease tank cars; placed on lease subsequent

to quarter end

See supplemental segment information on page 12 for additional information.

Includes Net gain on disposition of equipment, which is excluded from gross margin.

Conference Call

Greenbrier will host a teleconference to discuss its fourth quarter 2016 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. Teleconference details are as follows:

  • October 25, 2016
  • 8:00 a.m. Pacific Daylight Time
  • Phone: 1-630-395-0143, Password: 'Greenbrier'
  • Real-time Audio Access: ('Newsroom' at http://www.gbrx.com)

Please access the site 10 minutes prior to the start time.

About Greenbrier

Greenbrier (www.gbrx.com), headquartered in Lake Oswego, Oregon, is a leading international supplier of equipment and services to the freight rail transportation markets. Greenbrier designs, builds and markets freight railcars in North Americaand Europe, we build freight railcars and rail castings in Brazilthrough a strategic partnership, and build and market marine barges in North America. Recently, through our European manufacturing operations, we also began delivery of US-designed tank cars in Saudi Arabia. In October 2016, we entered into an agreement with Astra Rail Management GmbH to form a new company, Greenbrier-Astra Rail, which will create an end-to-end, Europe-based freight railcar manufacturing, engineering and repair business. We expect this combination will be completed during 2017. We are a leading provider of wheel services, parts, leasing and other services to the railroad and related transportation industries in North Americaand a provider of freight railcar repair, refurbishment and retrofitting services in North Americathrough a joint venture partnership with Watco Companies, LLC. Through other joint ventures we produce rail castings, tank heads and other railcar components. Greenbrier owns a lease fleet of over 9,000 railcars and performs management services for over 268,000 railcars.

'SAFE HARBOR' STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This press release may contain forward-looking statements, including statements regarding expected new railcar production volumes and schedules, expected customer demand for the Company's products and services, available manufacturing capacity, restructuring plans, new railcar delivery volumes and schedules, demand for the Company's railcar services and parts business, and the Company's future financial performance. Greenbrier uses words such as 'anticipates,' 'believes,' 'forecast,' 'potential,' 'goal,' 'contemplates,' 'expects,' 'intends,' 'plans,' 'projects,' 'hopes,' 'seeks,' 'estimates,' 'strategy,' 'could,' 'would,' 'should,' 'likely,' 'will,' 'may,' 'can,' 'designed to,' 'future,' 'foreseeable future' and similar expressions to identify forward-looking statements. 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 in the results contemplated by the forward-looking statements. Factors that might cause such a difference include, but are not limited to, reported backlog and awards are not indicative of our financial results; uncertainty or changes in the credit markets and financial services industry; high levels of indebtedness and compliance with the terms of our indebtedness; write-downs of goodwill, intangibles and other assets in future periods; sufficient availability of borrowing capacity; fluctuations in demand for newly manufactured railcars or failure to obtain orders as anticipated in developing forecasts; loss of one or more significant customers; customer payment defaults or related issues; sovereign risk to contracts, exchange rates or property rights; actual future costs and the availability of materials and a trained workforce; failure to design or manufacture new products or technologies or to achieve certification or market acceptance of new products or technologies; steel or specialty component price fluctuations and availability and scrap surcharges; changes in product mix and the mix between segments; labor disputes, energy shortages or operating difficulties that might disrupt manufacturing operations or the flow of cargo; production difficulties and product delivery delays as a result of, among other matters, costs or inefficiencies associated with expansion, start-up, or changing of production lines or changes in production rates, changing technologies, transfer of production between facilities or non-performance of alliance partners, subcontractors or suppliers; ability to obtain suitable contracts for the sale of leased equipment and risks related to car hire and residual values; integration of current or future acquisitions and establishment of joint ventures; succession planning; discovery of defects in railcars or services resulting in increased warranty costs or litigation; physical damage or product or service liability claims that exceed our insurance coverage; train derailments or other accidents or claims that could subject us to legal claims; actions or inactions by various regulatory agencies including potential environmental remediation obligations or changing tank car or other rail car or railroad regulation; all as may be discussed in more detail under the headings 'Risk Factors' and 'Forward Looking Statements' in our Annual Report on Form 10-K for the fiscal year ended August 31, 2016, and our other reports on file with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date hereof. Except as otherwise required by law, we do not assume any obligation to update any forward-looking statements.

Adjusted EBITDA is not a financial measure under generally accepted accounting principles (GAAP). We define Adjusted EBITDA as Net earnings before Interest and foreign exchange, Income tax expense, Depreciation and amortization. Adjusted EBITDA is a performance measurement tool commonly used by rail supply companies and Greenbrier. You should not consider Adjusted EBITDA in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because Adjusted EBITDA is not a measure of financial performance under GAAP and is susceptible to varying calculations, this measure presented may differ from and may not be comparable to similarly titled measures used by other companies.

Annualized ROIC is calculated by taking year to date Earnings from operations, less cash paid for income taxes, net, which is then annualized and divided by the average balance of the sum of the Revolving notes, plus Notes payable, plus Total equity, less cash in excess of $40 million. The average is calculated based on the quarterly ending balances.

THE GREENBRIER COMPANIES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, unaudited)

August 31,
2016

May 31,

2016

February 29,
2016

November 30,
2015

August 31,
2015

Assets

Cash and cash equivalents

$ 222,679

$ 214,440

$ 283,541

$ 197,633

$ 172,930

Restricted cash

24,279

8,669

8,877

9,818

8,869

Accounts receivable, net

232,517

213,510

228,072

237,213

196,029

Inventories

365,805

458,068

421,243

444,023

445,535

Leased railcars for syndication

144,932

136,812

179,975

238,911

212,534

Equipment on operating leases, net

306,266

232,791

235,171

252,641

255,391

Property, plant and equipment, net

329,990

318,010

310,019

307,196

303,135

Investment in unconsolidated affiliates

98,682

89,297

86,850

86,658

87,270

Intangibles and other assets, net

69,475

71,022

73,296

76,157

65,554

Goodwill

43,265

43,265

43,265

43,265

43,265

$ 1,837,890

$ 1,785,884

$ 1,870,309

$ 1,893,515

$ 1,790,512

Liabilities and Equity

Revolving notes

$ -

$ -

$ 75,000

$ 163,888

$ 50,888

Accounts payable and accrued liabilities

369,754

370,652

401,010

384,670

455,213

Deferred income taxes

51,619

50,390

55,204

63,483

60,657

Deferred revenue

95,721

68,158

84,362

42,351

33,836

Notes payable

303,969

306,808

322,539

324,668

326,429

Total equity - Greenbrier

874,311

840,086

800,940

771,945

732,838

Noncontrolling interest

142,516

149,790

131,254

142,510

130,651

Total equity

1,016,827

989,876

932,194

914,455

863,489

$ 1,837,890

$ 1,785,884

$ 1,870,309

$ 1,893,515

$ 1,790,512

THE GREENBRIER COMPANIES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

Years ending August 31,

2016

2015

2014

Revenue

Manufacturing

$ 2,096,331

$ 2,136,051

$ 1,624,916

Wheels & Parts

322,395

371,237

495,627

Leasing & Services

260,798

97,990

83,419

2,679,524

2,605,278

2,203,962

Cost of revenue

Manufacturing

1,630,554

1,691,414

1,374,008

Wheels & Parts

293,751

334,680

463,938

Leasing & Services

203,782

41,831

43,796

2,128,087

2,067,925

1,881,742

Margin

551,437

537,353

322,220

Selling and administrative

158,681

151,791

125,270

Net gain on disposition of equipment

(15,796)

(1,330)

(15,039)

Gain on contribution to joint venture

-

-

(29,006)

Restructuring charges

-

-

1,475

Earnings from operations

408,552

386,892

239,520

Other costs

Interest and foreign exchange

13,502

11,179

18,695

Earnings before income tax and earnings from unconsolidated affiliates

395,050

375,713

220,825

Income tax expense

(112,322)

(112,160)

(72,401)

Earnings before earnings fromunconsolidated affiliates

282,728

263,553

148,424

Earnings from unconsolidated affiliates

2,096

1,756

1,355

Net earnings

284,824

265,309

149,779

Net earnings attributable to noncontrolling interest

(101,611)

(72,477)

(37,860)

Net earnings attributable to Greenbrier

$ 183,213

$ 192,832

$ 111,919

Basic earnings per common share:

$ 6.28

$ 6.85

$ 3.97

Diluted earnings per common share:

$ 5.73

$ 5.93

$ 3.44

Weighted average common shares:

Basic

29,156

28,151

28,164

Diluted

32,468

33,328

34,209

Dividends declared per common share

$ 0.81

$ 0.60

$ 0.15

THE GREENBRIER COMPANIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Years Ended August 31,

2016

2015

2014

Cash flows from operating activities:

Net earnings

$ 284,824

$ 265,309

$ 149,779

Adjustments to reconcile net earnings to net cashprovided by operating activities:

Deferred income taxes

(8,935)

(20,151)

(4,687)

Depreciation and amortization

63,345

45,156

40,422

Net gain on disposition of equipment

(15,796)

(1,330)

(15,039)

Stock based compensation expense

24,037

19,459

11,285

Gain on contribution to joint venture

-

-

(29,006)

Noncontrolling interest adjustments

526

17,215

2,774

Other

560

1,184

576

Decrease (increase) in assets:

Accounts receivable, net

(32,051)

13,652

(23,749)

Inventories

53,711

(143,849)

(9,675)

Leased railcars for syndication

19,154

(90,614)

(57,779)

Other

(16,989)

575

(4,069)

Increase (decrease) in liabilities:

Accounts payable and accrued liabilities

(91,428)

72,419

63,362

Deferred revenue

50,712

13,308

11,713

Net cash provided by operating activities

331,670

192,333

135,907

Cash flows from investing activities:

Proceeds from sales of assets

103,715

5,295

54,235

Capital expenditures

(139,013)

(105,989)

(70,227)

Decrease (increase) in restricted cash

(15,410)

271

(333)

Investment in and advances to unconsolidated affiliates

(12,855)

(34,453)

(13,753)

Cash distribution from joint ventures

7,855

3,345

-

Net cash used in investing activities

(55,708)

(131,531)

(30,078)

Cash flows from financing activities:

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

(49,000)

49,000

-

Proceeds from revolving notes with maturities longer than 90 days

-

44,451

37,819

Repayments of revolving notes with maturities longer than 90 days

(1,888)

(55,644)

(72,947)

Proceeds from issuance of notes payable

-

-

200,000

Repayments of notes payable

(22,299)

(7,475)

(128,797)

Debt issuance costs

(4,161)

-

(382)

Decrease (increase) in restricted cash

-

11,000

(11,000)

Repurchase of stock

(33,498)

(69,950)

(33,583)

Dividends

(23,303)

(16,491)

(4,123)

Cash distribution to joint venture partner

(95,092)

(20,375)

(5,076)

Investment by joint venture partner

5,400

-

419

Excess tax benefit from restricted stock awards

2,813

2,908

109

Other

(887)

(248)

-

Net cash used in financing activities

(221,915)

(62,824)

(17,561)

Effect of exchange rate changes

(4,298)

(9,964)

(787)

Increase (decrease) in cash and cash equivalents

49,749

(11,986)

87,481

Cash and cash equivalents

Beginning of period

172,930

184,916

97,435

End of period

$ 222,679

$ 172,930

$ 184,916

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

(In thousands, except per share amounts, unaudited)

Operating Results by Quarter for 2016 are as follows:

First

Second

Third

Fourth

Total

Revenue

Manufacturing

$ 698,661

$ 454,531

$ 458,494

$ 484,645

$ 2,096,331

Wheels & Parts

78,729

90,458

78,417

74,791

322,395

Leasing & Services

24,999

124,090

75,955

35,754

260,798

802,389

669,079

612,866

595,190

2,679,524

Cost of revenue

Manufacturing

533,033

361,827

352,775

382,919

1,630,554

Wheels & Parts

73,002

81,388

69,818

69,543

293,751

Leasing & Services

11,589

105,973

63,175

23,045

203,782

617,624

549,188

485,768

475,507

2,128,087

Margin

184,765

119,891

127,098

119,683

551,437

Selling and administrative expense

36,549

38,244

43,280

40,608

158,681

Net gain on disposition of equipment

(269)

(10,746)

(311)

(4,470)

(15,796)

Earnings from operations

148,485

92,393

84,129

83,545

408,552

Other costs

Interest and foreign exchange

5,436

1,417

3,712

2,937

13,502

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

143,049

90,976

80,417

80,608

395,050

Income tax expense

(44,719)

(25,734)

(22,449)

(19,420)

(112,322)

Earnings before earnings (loss) from unconsolidated affiliates

98,330

65,242

57,968

61,188

282,728

Earnings (loss) from unconsolidated affiliates

383

974

1,564

(825)

2,096

Net earnings

98,713

66,216

59,532

60,363

284,824

Net earnings attributable to noncontrolling interest

(29,280)

(21,348)

(24,180)

(26,803)

(101,611)

Net earnings attributable to Greenbrier

$ 69,433

$ 44,868

$ 35,352

$ 33,560

$ 183,213

Basic earnings per common share

$ 2.36

$ 1.54

$ 1.22

$ 1.15

$ 6.28

Diluted earnings per common share

$ 2.15

$ 1.41

$ 1.12

$ 1.06

$ 5.73

(1)

Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes and restricted stock units that are subject to performance criteria, for which actual levels of performance above target have been achieved, using the treasury stock method when dilutive and the dilutive effect of shares underlying the 2018 Convertible Notes using the 'if converted' method in which debt issuance and interest costs, net of tax, were added back to net earnings.

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

(In thousands, except per share amounts, unaudited)

Operating Results by Quarter for 2015 are as follows:

First

Second

Third

Fourth

Total

Revenue

Manufacturing

$ 379,949

$ 505,241

$ 593,376

$ 657,485

$ 2,136,051

Wheels & Parts

86,624

102,640

97,407

84,566

371,237

Leasing & Services

28,485

22,268

23,823

23,414

97,990

495,058

630,149

714,606

765,465

2,605,278

Cost of revenue

Manufacturing

316,037

403,227

465,658

506,492

1,691,414

Wheels & Parts

76,872

92,768

89,645

75,395

334,680

Leasing & Services

14,081

8,844

10,017

8,889

41,831

406,990

504,839

565,320

590,776

2,067,925

Margin

88,068

125,310

149,286

174,689

537,353

Selling and administrative expense

33,729

32,899

45,595

39,568

151,791

Net gain on disposition of equipment

(83)

(121)

(720)

(406)

(1,330)

Earnings from operations

54,422

92,532

104,411

135,527

386,892

Other costs

Interest and foreign exchange

3,141

1,929

4,285

1,824

11,179

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

51,281

90,603

100,126

133,703

375,713

Income tax expense

(16,054)

(29,372)

(30,783)

(35,951)

(112,160)

Earnings before earnings (loss) from unconsolidated affiliates

35,227

61,231

69,343

97,752

263,553

Earnings (loss) from unconsolidated affiliates

755

(185)

982

204

1,756

Net earnings

35,982

61,046

70,325

97,956

265,309

Net earnings attributable to noncontrolling interest

(3,196)

(10,695)

(27,514)

(31,072)

(72,477)

Net earnings attributable to Greenbrier

$ 32,786

$ 50,351

$ 42,811

$ 66,884

$ 192,832

Basic earnings per common share

$ 1.19

$ 1.86

$ 1.54

$ 2.23

$ 6.85

Diluted earnings per common share

$ 1.01

$ 1.57

$ 1.33

$ 2.02

$ 5.93

(1)

Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes using the treasury stock method and the dilutive effect of shares underlying the 2018 Convertible Notes using the 'if converted' method in which debt issuance and interest costs, net of tax, were added back to net earnings.

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

(In thousands, unaudited)

Segment Information

Three months ended August 31, 2016:

Revenue

Earnings (loss) from operations

External

Intersegment

Total

External

Intersegment

Total

Manufacturing

$ 484,645

$ 83,563

$ 568,208

$ 89,879

$ 23,358

$ 113,237

Wheels & Parts

74,791

8,362

83,153

4,228

447

4,675

Leasing & Services

35,754

2,657

38,411

9,055

2,657

11,712

Eliminations

-

(94,582)

(94,582)

-

(26,462)

(26,462)

Corporate

-

-

-

(19,617)

-

(19,617)

$ 595,190

$ -

$ 595,190

$ 83,545

$ -

$ 83,545

Three months ended May 31, 2016:

Revenue

Earnings (loss) from operations

External

Intersegment

Total

External

Intersegment

Total

Manufacturing

$ 458,494

$ 5,595

$ 464,089

$ 92,713

$ 923

$ 93,636

Wheels & Parts

78,417

10,058

88,475

5,811

711

6,522

Leasing & Services

75,955

601

76,556

8,298

601

8,899

Eliminations

-

(16,254)

(16,254)

-

(2,235)

(2,235)

Corporate

-

-

-

(22,693)

-

(22,693)

$ 612,866

$ -

$ 612,866

$ 84,129

$ -

$ 84,129

Total assets

August 31,

May 31,

2016

2016

Manufacturing

$ 701,296

$ 641,090

Wheels & Parts

275,599

301,474

Leasing & Services

518,263

523,989

Unallocated

342,732

319,331

$ 1,837,890

$ 1,785,884

The results of operations for GBW, which are shown below, are not reflected in the above tables as the investment is accounted for under the equity method of accounting.

As of and for the
Three Months Ended

August 31,
2016

May 31,
2016

Revenue

$ 84,100

$ 95,700

Earnings (loss) from operations

$ (500)

$ 3,000

Total assets

$ 247,600

$ 255,400

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

(In thousands, excluding backlog and delivery units, unaudited)

Reconciliation of Net earnings to Adjusted EBITDA

Three Months Ended

Year Ended

August 31,
2016

May 31,
2016

August 31,
2016

Net earnings

$ 60,363

$ 59,532

$ 284,824

Interest and foreign exchange

2,937

3,712

13,502

Income tax expense

19,420

22,449

112,322

Depreciation and amortization

21,664

13,839

63,345

Adjusted EBITDA

$ 104,384

$ 99,532

$ 473,993

Three Months
Ended
August 31,
2016

Year
Ended
August 31,
2016

Backlog Activity (units)

Beginning backlog

31,200

41,300

Orders received

2,300

7,500

Orders removed

(1,200)

(1,200)

Production held as Leased railcars for syndication

(800)

(3,600)

Production sold directly to third parties

(4,000)

(16,500)

Ending backlog

27,500

27,500

Delivery Information (units)

Production sold directly to third parties

4,000

16,500

Sales of Leased railcars for syndication

600

3,800

Total deliveries

4,600

20,300

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

(In thousands, except per share amounts, unaudited)

Reconciliation of common shares outstanding and diluted earnings per share

The shares used in the computation of the Company's basic and diluted earnings per common share are reconciled as follows:

Three Months Ended

August 31,
2016

May 31,
2016

Weighted average basic common shares outstanding

29,079

29,059

Dilutive effect of convertible notes

3,250

3,224

Dilutive effect of performance awards

118

59

Weighted average diluted common shares outstanding

32,447

32,342

(1)

Restricted stock grants and restricted stock units, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position.

(2)

The dilutive effect of the 2018 Convertible notes are included in the Weighted average diluted common shares outstanding as they were considered dilutive under the 'if converted' method as further discussed below.

(3)

Restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, and are included in Weighted average diluted shares outstanding when the company is in a net earnings position.

Diluted earnings per share was calculated using the more dilutive of two approaches. The first approach includes the dilutive effect, using the treasury stock method, associated with shares underlying the 2026 Convertible notes and performance based restricted stock units that are subject to performance criteria, for which actual levels of performance above target have been achieved. The second approach supplements the first by including the 'if converted' effect of the 2018 Convertible notes issued in March 2011. Under the 'if converted method' debt issuance and interest costs, both net of tax, associated with the convertible notes are added back to net earnings and the share count is increased by the shares underlying the convertible notes.

Three Months Ended

August 31,
2016

May 31,
2016

Net earnings attributable to Greenbrier

$ 33,560

$ 35,352

Add back:

Interest and debt issuance costs on the 2018 Convertible notes, net of tax

733

733

Earnings before interest and debt issuance costs on convertible notes

$ 34,293

$ 36,085

Weighted average diluted common shares outstanding

32,447

32,342

Diluted earnings per share

$ 1.06

$ 1.12

SOURCE The Greenbrier Companies, Inc. (GBX)

The Greenbrier Companies Inc. published this content on 25 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 25 October 2016 10:22:11 UTC.

Original documenthttp://www.gbrx.com/media-resources/press-releases/greenbrier-reports-fourth-quarter-results/

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