Greenbrier Reports Fiscal Fourth Quarter Financial Results
Greenbrier Reports Fiscal Fourth Quarter Financial Results
~ Posts EPS of $0.26; Backlog of 10,700 units valued at $1.20 billion
~~ Record fiscal year revenue and earnings
PR Newswire
LAKE OSWEGO, Ore., Nov. 1, 2012
LAKE OSWEGO, Ore., Nov. 1, 2012 /PRNewswire/ -- The Greenbrier Companies
(NYSE: GBX) today reported results for its fiscal fourth quarter and fiscal
year ended August 31, 2012.
Fourth Quarter and Fiscal Year
Highlights
o Full year revenue reached $1.81 billion, a 45% increase over last year and
a new record for the company.
o Record net earnings attributable to Greenbrier ("net earnings") for the
year of $58.7 million was a nine-fold increase over prior year.
o Net earnings for the fourth quarter were $7.4 million, or $.26 per diluted
share, on revenue of $443.5 million.
o New railcar deliveries for 2012 were a record 15,000 units, compared to
9,400 units in 2011, and 2,500 units in 2010.
o During the fourth quarter, the Company received orders for 2,900 new
railcars.
o New railcar manufacturing backlog as of August 31, 2012 was 10,700 units
with an estimated value of $1.20 billion (an average unit sale price of
$112,000), compared to 11,500 units with an estimated value of $1.14
billion (an average unit sale price of $99,000) as of May 31, 2012. Based
on current production plans, approximately 7,300 units in August 31, 2012
backlog are scheduled for delivery in fiscal 2013. The balance are
scheduled for delivery in fiscal 2014.
o Marine backlog totaled $25 million as of August 31, 2012; additionally we
were awarded a letter of intent for 15 barges valued at $60 million
subject to significant permitting and other conditions.
o Operating cash flow was positive $116.1 million for 2012, compared to
negative $34.3 million in 2011.
William A. Furman, president and chief executive officer, said, "In fiscal
2012, our manufacturing operations responded well to strong demand for new
railcars and our leasing operation significantly enhanced its syndication and
management services model, leading to record revenue and earnings for the full
year. While we realized positive momentum during the year in both of these
operations, our fourth quarter earnings were well below our expectations.
This was principally due to lower than anticipated new railcar deliveries, a
high tax rate for the quarter, and certain employee related costs."
Mark Rittenbaum, chief financial officer, noted, "New railcar deliveries to
two customers totaling 560 railcars, with an aggregate value of nearly $50
million that we expected to occur by year-end, were postponed due to delays in
a lease syndication transaction and one customer's acceptance of certain
railcars. All of these deliveries occurred subsequent to quarter end.
Additionally, our actual tax rate for the quarter of 51% was significantly
higher than our expected tax rate of around 34%. This difference was
primarily due to a change in our geographic mix of earnings. Also, we
incurred certain severance costs of nearly $1 million after-tax during the
quarter. Finally, gain on disposition of equipment was only $.1 million
pre-tax for the quarter, whereas the average gain for the prior three quarters
was nearly $3 million per quarter."
Furman concluded, "In fiscal 2013, we expect less business visibility than in
fiscal 2012, as a result of global economic and geopolitical uncertainty. We
will focus on four key areas beyond basic execution of our operating plan.
First, we will expand capacity in higher margin railcar types, such as tank
cars, to respond to market demand. Second, we will continue to expand our
product offerings in the businesses that are related to the oil, gas and
chemical industries and in other high-growth areas. Third, we will continue
to improve our working capital position, increase free cash flow and pay down
debt. Lastly, we will continue to seek diversification and growth
opportunities in the rail freight marketplace, especially in leasing."
Financial Summary
Q4 FY12 Q3 FY12 Sequential Comparison – Main Drivers
Revenue $443.5M $507.8M Down, due to lower new railcar deliveries
with a higher average sales price
Gross margin 12.3% 12.2% Up 10 bps on operational efficiencies
Selling and Lower incentive compensation expense
$27.6M $28.8M associated with lower earnings
administrative
Gain on disposition Timing of sales fluctuates and is
$0.07M $2.6M opportunistic
of equipment
Adjusted EBITDA $36.0 M $44.6M Down 19.3% due to lower revenue
Effective tax rate 51% 30% Change in geographic mix of earnings
Net earnings $7.4M $19.1M Down 61% on lower revenue and higher tax
rate
Diluted EPS – GAAP $0.26 $0.61 "If converted" calculation
Economic EPS $0.27 $0.69 Excludes "if converted" impact of
out-of-the-money bonds due 2018
Segment Summary
Q4 FY12 Q3 FY12 Sequential Comparison – Main
Drivers
Manufacturing: Down 16.1% due to lower deliveries
with higher average sales price
Revenue
$306.2M $364.9M Up 100 bps due to operational
efficiencies
Gross margin Down due to timing of lease
11.8% 10.8% syndications and customer
Deliveries acceptance (560 cars) and change in
3,500 4,500 mix
Wheel Services, Down 4.8% due to lower wheel
Refurbishment & Parts volumes
Revenue Down 270 bps due to lower wheel
$119.1M $125.1M volumes, sales mix and repair labor
Gross margin inefficiencies
8.1% 10.8%
Up 3.4% due to increased volume of
Leasing & Services: leased cars
Revenue $18.3M $17.7M Down 260 bps due to fewer railcars
held for syndication resulting in
Gross margin 47.6% 50.2% less interim rent
Lease Fleet Utilization 93.5% 95.5% Timing of lease commencement on
certain fleet additions
Business Outlook
Given global economic and geopolitical uncertainty, Greenbrier currently has
less business visibility and more variability now than it had in fiscal 2012.
Based on current business trends and industry forecasts, management currently
anticipates the Company's new railcar deliveries in 2013 to be between 11,500
– 13,000 units. Approximately 7,300 of these units are in firm backlog as of
August 31, 2012, with the balance of deliveries expected to come from
additional orders received during the year. While the range of deliveries is
below the 15,000 deliveries for fiscal 2012, the Company anticipates the
product mix will include railcars with higher average selling prices.
Currently, management anticipates that at the upper end of the delivery
guidance range, fiscal 2013 revenue, adjusted EBITDA and earnings per share
will be similar to fiscal 2012, with the second half of the year being
stronger than the first half of the year.
Conference Call
Greenbrier will host a teleconference to discuss fourth quarter results. In
conjunction with this news release, Greenbrier has posted a supplemental
earnings presentation to our website. Teleconference details are as follows:
o November 1, 2012
o 8:00 a.m. Pacific Daylight Time
o Phone: 1-630-395-0143, Password: "Greenbrier"
o Real-time Audio Access: ("Newsroom" at http://www.gbrx.com)
Please access the site 10 minutes prior to the start time. Following the
call, a webcast replay will be available for 30 days. Telephone replay will
be available through December 2, 2012 at 1-402-280-9982.
About Greenbrier Companies
Greenbrier, (www.gbrx.com), headquartered in Lake Oswego, Oregon, is a leading
supplier of transportation equipment and services to the railroad industry.
Greenbrier builds new railroad freight cars in its three manufacturing
facilities in the U.S. and Mexico and marine barges at its U.S. facility. It
also repairs and refurbishes freight cars and provides wheels and railcar
parts at 39 locations across North America. Greenbrier builds new railroad
freight cars and refurbishes freight cars for the European market through both
its operations in Poland and various subcontractor facilities throughout
Europe. Greenbrier owns approximately 11,000 railcars, and performs management
services for approximately 219,000 railcars.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: This 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, plans to
increase manufacturing capacity, new railcar delivery volumes and schedules,
growth in 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," "contemplates,"
"expects," "intends," "plans," "seeks," "estimates," "could," "would," "will,"
"may," "can," 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 is not indicative of our financial results;
turmoil 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; 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,
changing technologies, production of new railcar types, or non-performance of
subcontractors or suppliers; ability to obtain suitable contracts for the sale
of leased equipment and risks related to car hire and residual values;
difficulties associated with governmental regulation, including environmental
liabilities; integration of current or future acquisitions; succession
planning; 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, 2011, 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 earnings attributable to
Greenbrier before loss on extinguishment of debt, 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, the
Adjusted EBITDA measure presented may differ from and may not be comparable to
similarly titled measures used by other companies.
Economic EPS is not a financial measure under GAAP. Economic EPS is used to
measure the current economic impact of our Convertible Bonds due in 2018 that
have a conversion strike price of $38.05/share, which exceeds our current
stock price. We define Economic EPS as net earnings attributable to Greenbrier
divided by the sum of weighted average basic common shares outstanding, plus
the dilutive effect of warrants. This calculation excludes the dilutive
effect of the shares underlying the 2018 bonds under the "if converted"
method, which is included in the calculation of Diluted EPS. You should not
consider Economic EPS in isolation or as a substitute for other financial
statement data determined in accordance with GAAP. In addition, because
Economic EPS is not a measure of financial performance under GAAP and is
susceptible to varying calculations, the Economic EPS measure presented may
differ from and may not be comparable to similarly titled measures used by
other companies.
THE GREENBRIER COMPANIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
August 31, May 31, February November August 31,
29, 30,
2012 2012 2012 2011 2011
Assets
Cash and cash $ $ $ $ $
equivalents 53,571 44,915 40,666 20,855 50,222
Restricted cash 6,277 6,089 2,249 2,151 2,113
Accounts 146,326 172,086 177,544 149,559 188,443
receivable, net
Inventories 316,741 346,122 365,811 354,045 323,512
Leased railcars 97,798 66,776 79,681 68,029 30,690
for syndication
Equipment on
operating leases, 362,968 334,872 322,811 323,878 321,141
net
Property, plant 182,429 172,729 165,700 159,671 161,200
and equipment, net
Goodwill 137,066 137,066 137,066 137,066 137,066
Intangibles and 81,368 84,693 85,155 84,187 87,268
other assets, net
$ 1,384,544 $ 1,365,348 $ 1,376,683 $ 1,299,441 $ 1,301,655
Liabilities and
Equity
Revolving notes $ $ $ $ $
60,755 71,430 101,446 80,679 90,339
Accounts
payable and 329,508 323,977 340,328 311,519 316,536
accrued
liabilities
Deferred income 95,363 88,514 89,623 87,395 83,839
taxes
Deferred 17,194 17,872 1,230 5,724 5,900
revenue
Notes payable 428,079 428,028 428,454 431,184 429,140
Total equity 431,777 418,161 399,788 368,528 361,573
Greenbrier
Noncontrolling 21,868 17,366 15,814 14,412 14,328
interest
Total equity 453,645 435,527 415,602 382,940 375,901
$ 1,384,544 $ 1,365,348 $ 1,376,683 $ 1,299,441 $ 1,301,655
THE GREENBRIER COMPANIES, INC.
CONSOLIDATED STATEMENTS OF
INCOME
(In thousands, except per
share amounts)
Years Ended August 31,
2012 2011 2010
Revenue
Manufacturing $ 1,253,964 $ 721,102 $ 295,566
Wheel Services, 481,865 452,865 388,434
Refurbishment & Parts
Leasing & Services 71,887 69,323 72,280
1,807,716 1,243,290 756,280
Cost of revenue
Manufacturing 1,122,384 661,127 268,395
Wheel Services, 433,541 405,449 344,522
Refurbishment & Parts
Leasing & Services 37,371 37,183 41,365
1,593,296 1,103,759 654,282
Margin 214,420 139,531 101,998
Selling and administrative 104,596 80,326 69,931
Gain on disposition of (8,964) (8,369) (8,170)
equipment
Special items - - (11,870)
Earnings from operations 118,788 67,574 52,107
Other costs
Interest and foreign 24,809 36,992 45,204
exchange
Loss (gain) on - 15,657 (2,070)
extinguishment of debt
Earnings before income tax
and loss from
93,979 14,925 8,973
unconsolidated
affiliates
Income tax benefit (32,393) (3,564) 959
(expense)
Earnings before loss from 61,586 11,361 9,932
unconsolidated affiliates
Loss from unconsolidated (416) (2,974) (1,601)
affiliates
Net earnings 61,170 8,387 8,331
Net earnings attributable (2,462) (1,921) (4,054)
to noncontrolling interest
Net earnings attributable $ 58,708 $ 6,466 $
to Greenbrier 4,277
Basic earnings per common $ 2.21 $ 0.27 $
share: 0.23
Diluted earnings per common $ 1.91 $ 0.24 $
share: 0.21
Weighted average common
shares:
Basic 26,572 24,100 18,585
Diluted 33,718 26,501 20,213
THE GREENBRIER COMPANIES, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In thousands)
Years Ended August 31,
2012 2011 2010
Cash flows from operating
activities:
Net earnings $ 61,170 $ 8,387 $ 8,331
Adjustments to reconcile net
earnings to net cash
(used in) provided by
operating activities:
Deferred income taxes 11,617 2,399 15,052
Depreciation and 42,371 38,293 37,511
amortization
Gain on sales of leased (8,964) (5,121) (6,543)
equipment
Accretion of debt discount 3,259 6,583 8,149
Special items - - (11,870)
Loss (gain) on
extinguishment of debt (non-cash - 8,453 (2,070)
portion)
Other 13,662 6,762 4,237
Decrease (increase) in
assets:
Accounts receivable 37,763 (96,552) 22,430
Inventories 3,709 (116,866) (45,212)
Leased railcars for (76,071) (20,839) 759
syndication
Other - 8,863 6,455
Increase (decrease) in
liabilities:
Accounts payable and 16,236 130,673 12,777
accrued liabilities
Deferred revenue 11,304 (5,287) (7,445)
Net cash (used in) provided 116,056 (34,252) 42,561
by operating activities
Cash flows from investing
activities:
Proceeds from sales of 33,560 18,730 22,978
equipment
Investment in and advances to (506) (2,330) (927)
unconsolidated affiliates
Contract placement fee - - (6,050)
Decrease (increase) in (4,164 412 (1,442
restricted cash
Capital expenditures (117,885) (84,302) (38,989)
Other 48 (1,774 260
Net cash used in investing (88,947) (69,264) (24,170)
activities
Cash flows from financing
activities:
Net changes in revolving
notes with maturities of 90 days (57,302) 71,625 (11,934)
or less
Proceeds from revolving notes
with maturities longer than 90 63,773 25,159 5,698
days
Repayments of revolving notes
with maturities longer than 90 (33,934) (10,000) (5,698)
days
Proceeds from issuance of 2,750 231,250 2,149
notes payable
Debt issuance costs - (11,469) (109)
Repayments of notes payable (7,070) (311,360) (38,267)
Proceeds from equity offering - 63,180 56,250
Expenses from equity offering - (420) (3,542)
Excess tax benefit from 1,627 - -
restricted stock awards
Investment by joint venture 1,362 - -
partner
Other - 26 29
Net cash provided by (used (28,794) 57,991 4,576
in) financing activities
Effect of exchange rate 5,034 (3,117) (290)
changes
Increase (decrease) in cash and 3,349 (48,642) 22,677
cash equivalents
Cash and cash equivalents
Beginning of period 50,222 98,864 76,187
End of period $ 53,571 $ 50,222 $ 98,864
THE GREENBRIER COMPANIES, INC.
SUPPLEMENTAL INFORMATION
Quarterly Results of Operations (Unaudited)
(In thousands, except per share amounts)
Operating results by quarter for 2012 and 2011 are as
follows:
First Second Third Fourth Total
2012
Revenue
Manufacturing $ $ $ $ $
262,656 320,206 364,930 306,172 1,253,964
Wheel Services, 117,749 119,894 125,145 119,077 481,865
Refurbishment & Parts
Leasing & Services 17,794 18,086 17,722 18,285 71,887
398,199 458,186 507,797 443,534 1,807,716
Cost of revenue
Manufacturing 236,188 290,851 325,424 269,921 1,122,384
Wheel Services, 105,891 106,554 111,610 109,486 433,541
Refurbishment & Parts
Leasing & Services 9,663 9,295 8,825 9,588 37,371
351,742 406,700 445,859 388,995 1,593,296
Margin 46,457 51,486 61,938 54,539 214,420
Selling and 23,235 24,979 28,784 27,598 104,596
administrative
Gain on disposition (3,658) (2,654) (2,585) (67) (8,964)
of equipment
Earnings from 26,880 29,161 35,739 27,008 118,788
operations
Other costs
Interest and 5,383 6,630 6,560 6,236 24,809
foreign exchange
Earnings before
income tax and
earnings
21,497 22,531 29,179 20,772 93,979
(loss) from
unconsolidated
affiliates
Income tax expense (7,797) (5,348) (8,655) (10,593) (32,393)
Earnings (loss) from
unconsolidated (372) 72 201 (317) (416)
affiliates
Net earnings 13,328 17,255 20,725 9,862 61,170
Net (earnings) loss
attributable to
1,189 415 (1,608) (2,458) (2,462)
Noncontrolling
interest
Net earnings $ $ $ $ $
attributable to 14,517 17,670 19,117 7,404 58,708
Greenbrier
Basic earnings per $ $ $ $ $
common share: ^(1) 0.57 0.66 0.71 0.27 2.21
Diluted earnings per $ $ $ $ $
common share: ^(2) 0.48 0.57 0.61 0.26 1.91
(1) Quarterly amounts do not total to the year to date amount as each period
is calculated discretely.
Quarterly amounts do not total to the year to date amount as each period
is calculated discretely. Diluted earnings per common share includes the
(2) outstanding warrants 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
Quarterly Results of Operations (Unaudited)
(In thousands, except per share amounts)
First Second Third Fourth Total
2011
Revenue
Manufacturing $ $ $ $ $ 721,102
85,440 156,621 173,487 305,554
Wheel Services, 95,268 112,015 126,317 119,265 452,865
Refurbishment & Parts
Leasing & Services 18,226 15,704 17,476 17,917 69,323
198,934 284,340 317,280 442,736 1,243,290
Cost of revenue
Manufacturing 79,747 147,552 158,674 275,154 661,127
Wheel Services, 86,411 101,413 111,202 106,423 405,449
Refurbishment & Parts
Leasing & Services 9,120 8,725 9,254 10,084 37,183
175,278 257,690 279,130 391,661 1,103,759
Margin 23,656 26,650 38,150 51,075 139,531
Selling and 17,938 17,693 22,580 22,115 80,326
administrative
Gain on disposition of (2,510) (1,961) (1,678) (2,220) (8,369)
equipment
Earnings from operations 8,228 10,918 17,248 31,180 67,574
Other costs
Interest and foreign 10,304 10,536 9,807 6,345 36,992
exchange
Loss on - - 10,007 5,650 15,657
extinguishment of debt
Earnings (loss) before
income tax and
(2,076) 382 (2,566) 19,185 14,925
loss from
unconsolidated
affiliates
Income tax benefit 611 (100) 301 (4,376) (3,564)
(expense)
Loss from unconsolidated (587) (575) (539) (1,273) (2,974)
affiliates
Net earnings (loss) (2,052) (293) (2,804) 13,536 8,387
Net earnings
attributable to
(252) (257) (510) (902) (1,921)
Noncontrolling
interest
Net earnings (loss) $ $ $ $ $
attributable to (2,304) (550) (3,314) 12,634 6,466
Greenbrier
Basic earnings (loss) $ $ $ $ $
per common share: ^(1) (0.11) (0.02) (0.14) 0.50 0.27
Diluted earnings (loss) $ $ $ $ $
per common share: ^(2) (0.11) (0.02) (0.14) 0.42 0.24
Quarterly amounts do not total to the year to date amount as each period
(1) is calculated discretely. Unvested restricted stock awards are excluded
from the per share calculation for the first, second and third quarters
due to a net loss in each of those periods.2010 includes income of $11.
Quarterly amounts do not total to the year to date amount as each period
is calculated discretely. The dilutive effect of warrants is excluded from
per share calculations for the first, second and third quarters due to net
(2) losses for those periods. The fourth quarter diluted earnings per common
share includes the outstanding warrants 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
Reconciliation of Net Earnings attributable to Greenbrier to Adjusted EBITDA
^(1)
(In thousands, unaudited)
Three Months Ended Year Ended
August 31, August 31,
2012 2011 2012 2011
Net earnings attributable to $ $ $ $
Greenbrier 7,404 12,634 58,708 6,466
Loss on extinguishment of debt - 5,650 - 15,657
Interest and foreign exchange 6,236 6,345 24,809 36,992
Income tax expense 10,593 4,376 32,393 3,564
Depreciation and amortization 11,768 10,119 42,371 38,293
Adjusted EBITDA $ $ $ $
36,001 39,124 158,281 100,972
Adjusted ^ EBITDA is not a financial measure under generally accepted
accounting principles (GAAP). We define Adjusted EBITDA as earnings
attributable to Greenbrier before loss on extinguishment of debt, interest
and foreign exchange, income tax expense, depreciation and
amortization. Adjusted EBITDA is a performance measurement tool commonly
(1) 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, the Adjusted EBITDA measure
presented may differ from and may not be comparable to similarly titled
measures used by other companies.
Three Months Year Ended
Ended
August 31, 2012
August 31, 2012
Backlog Activity (units)
Beginning backlog 11,500 15,400
Orders received 2,900 11,200
Production held as Leased railcars for (300) (2,700)
syndication
Production sold directly to third parties (3,400) (13,200)
Ending backlog 10,700 10,700
Delivery Information (units)
Production sold directly to third parties 3,400 13,200
Sales of Leased railcars for syndication 100 1,800
Total deliveries 3,500 15,000
THE GREENBRIER COMPANIES, INC.
SUPPLEMENTAL INFORMATION
Calculation of Diluted Earnings
Per Share
(In thousands, except per share amounts, unaudited)
The shares used in the computation of the Company's basic and diluted earnings
per common share are reconciled as follows:
Three Months Ended Year Ended
August 31, August 31,
2012 2011 2012 2011
Weighted average basic common 27,148 25,177 26,572 24,100
shares outstanding ^(1)
Dilutive effect of warrants 756 2,340 1,101 2,401
Dilutive effect of convertible 6,045 6,045 6,045 -
notes ^(2)
Weighted average diluted common 33,949 33,562 33,718 26,501
shares outstanding
Restricted stock grants are treated as outstanding when issued and are
(1) included in weighted average basic common shares outstanding when the
Company is in a net earnings position.
In 2012 and for the three months ended August 31, 2011, the shares
underlying the dilutive effect of the 2018 Convertible notes are included
as they were considered dilutive under the "if converted" method. For the
year ended August 31, 2011, the dilutive effect of the shares underlying
(2) the 2018 Convertible Notes was excluded from the share calculation as it
was the less dilutive of two approaches described below. The dilutive
effect of the 2026 Convertible notes was excluded from the share
calculations as the stock price for each year presented was less than the
initial conversion price of $48.05 and is therefore considered
anti-dilutive.
Diluted EPS was calculated using the more dilutive of two approaches. The
first approach includes the dilutive effect of outstanding warrants and shares
underlying the 2026 Convertible notes in the share count using the treasury
stock method. 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 shares underlying the convertible notes. The 2026
Convertible notes would only be included in the calculation of both approaches
if the current stock price is greater than the initial conversion price of
$48.05 using the treasury stock method.
Three Months Ended Year Ended
August 31, August 31,
2012 2011 2012 2011
Net earnings attributable $ $ 12,634 $ 58,708 $
to Greenbrier 7,404 6,466
Add back:
Interest and debt issuance
costs on the
1,416 1,376 5,677 n/a
2018 Convertible notes,
net of tax
Earnings before interest
and debt issuance $
8,820 $ 14,010 $ 64,385 n/a
costs on convertible
notes
Weighted average diluted 33,949 33,562 33,718 26,501
common shares outstanding
Diluted earnings per $ 0.26 $ 0.42 ^ $ 1.91 $ 0.24
share^(1) ^
(1) Diluted earnings per share was calculated as follows:
Earnings before interest and debt issuance costs on convertible notes or
Net earnings attributable to Greenbrier
Weighted average diluted common shares outstanding
THE GREENBRIER COMPANIES, INC.
SUPPLEMENTAL INFORMATION
Reconciliation of Basic Earnings Per Share to Economic Earnings Per Share
^(1)
(In thousands, except per share amounts, unaudited)
The shares used in the computation of the Company's basic and economic
earnings per common share are reconciled as follows:
Three Months Ended Year Ended
August 31, May 31, August 31,
2012 2012 2012
Weighted average basic common 27,148 26,981 26,572
shares outstanding
Dilutive effect of warrants 756 836 1,101
Weighted average economic
diluted common shares 27,904 27,817 27,673
outstanding
Net earnings attributable to $ $ 19,117 $ 58,708
Greenbrier 7,404
Economic earnings per share $ $ $
0.27 0.69 2.12
^ Economic EPS is not a financial measure under GAAP. Economic EPS is
used to measure the current economic impact of our Convertible Bonds due
in 2018 that have a conversion strike price of $38.05/share, which exceeds
our current stock price. We define Economic EPS as net earnings
attributable to Greenbrier divided by the sum of weighted average basic
common shares outstanding, plus the dilutive effect of warrants. This
(1) calculation excludes the dilutive effect of the shares underlying the 2018
bonds under the "if converted" method, which is included in the
calculation of Diluted EPS. You should not consider Economic EPS in
isolation or as a substitute for other financial statement data determined
in accordance with GAAP. In addition, because Economic EPS is not a
measure of financial performance under GAAP and is susceptible to varying
calculations, the Economic EPS measure presented may differ from and may
not be comparable to similarly titled measures used by other companies.
SOURCE The Greenbrier Companies, Inc. (GBX)
Website: http://www.gbrx.com
Contact: Mark Rittenbaum, +1-503-684-7000
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