Subjects: ERN, CCA, ERP
Greenbrier Reports First Quarter Results
LAKE OSWEGO, Ore., Jan. 9, 2019 /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE: GBX) today reported financial results for its first fiscal quarter ended November 30, 2018.
First Quarter Highlights
- Net earnings attributable to Greenbrier for the quarter were $18.0 million, or $0.54 per diluted share, on revenue of $604.5 million.
- Adjusted EBITDA for the quarter was $57.6 million, or 9.5% of revenue.
- New railcar deliveries totaled 4,500 units for the quarter.
- Diversified orders for 5,400 railcars were received during the quarter, valued at $560 million. Book-to-bill of 1.2x for the quarter, marking the third consecutive quarter with a book-to-bill over 1.0x.
- New railcar backlog was 27,500 units with an estimated value of $2.7 billion.
- Board declares a quarterly dividend of $0.25 per share, payable on February 20, 2019 to shareholders of record as of January 30, 2019.
- Board extends share repurchase program two years until March 2021 and increases authorization to $100 million.
William A. Furman, Chairman and CEO, said, "Greenbrier's performance in the first quarter of fiscal 2019 exceeded expectations and demonstrates the ability of our people to execute the Company's business plan. Order activity was strong in the first quarter and comprised of a broad range of railcar types including double-stack intermodal units, tank cars and heavy-duty flat cars. Importantly, 20% of all new railcar orders were received from markets outside North America. We are confident in achieving our guidance for the year with approximately 90% of Greenbrier's fiscal 2019 production plan now booked with firm orders."
Furman concluded, "Greenbrier continues to see opportunities internationally, and expects international growth to continue from Europe and Brazil as the year progresses, with activity in the nations of the Gulf Cooperation Council and Eurasia growing over time. A thoughtful approach to capital deployment emphasizes growth at scale designed to both reinforce the Company's position in core North American markets and expand in international railcar markets. Developing a pipeline of talent to strengthen Greenbrier's workforce is another key strategic objective in fiscal 2019. Greenbrier will continue to invest in its business and people, a strategic approach that serves the Company, our shareholders and our employees well."
Business Outlook
With 90% of fiscal 2019 production in backlog, and based on current business trends, Greenbrier affirms:
- Deliveries will be approximately 24,000 ? 26,000 units including Greenbrier-Maxion (Brazil) which will account for approximately 2,000 units
- Revenue will exceed $3.0 billion
- Diluted EPS will be $4.20 - $4.40
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
Q1 FY19 | Q4 FY18 | Sequential Comparison ? Main Drivers | |
Revenue | $604.5M | $689.2M | Down 12.3% primarily due to lower volume of deliveries |
Gross margin | 12.0% | 15.4% | Down primarily due to product mix |
Selling and administrative expense | $50.4M | $51.3M | Down modestly due to lower employee related costs |
Gain on disposition of equipment | $14.4M | $4.6M | Continued rebalancing of lease portfolio |
Adjusted EBITDA | $57.6M | $75.3M | Lower operating earnings |
Effective tax rate | 28.5% | 20.1% | Reflects foreign discrete items and a change in the |
Earnings (loss) from unconsolidated affiliates | $0.5M | ($3.1M) | Improved performance in Brazil and dissolution of GBW |
Net earnings attributable to noncontrolling interest | $5.4M | $6.2M | Driven primarily by lower deliveries and timing of railcar |
Adjusted net earnings Greenbrier (1) | $18.0M | $26.4M | Lower operating earnings and higher tax rate partially |
Adjusted diluted EPS (1) | $0.54 | $0.80 |
(1) | Q1 FY19 includes no adjustments; Q4 FY18 excludes $4.5 million, or $0.14 per share, benefit related to a |
Segment Summary
Q1 FY19 | Q4 FY18 | Sequential Comparison ? Main Drivers | |
Manufacturing | |||
Revenue | $471.8M | $571.2M | Down 17.4% due to lower volume of deliveries |
Gross margin | 11.4% | 14.3% | Down primarily due to product mix |
Operating margin (1) | 7.8% | 10.9% | |
Deliveries (2) | 4,200 | 5,600 | |
Wheels, Repair & Parts | |||
Revenue | $108.5M | $85.8M | Up 26.5% primarily attributable to return of Repair locations |
Gross margin | 7.0% | 7.6% | Down due to repair volume inefficiencies |
Operating margin (1) | 3.0% | 4.3% | |
Leasing & Services | |||
Revenue | $24.2M | $32.2M | Down 24.8% due to lower volume of externally sourced |
Gross margin | 45.4% | 54.9% | Down primarily due to increased railcar transportation costs |
Operating margin (1) (3) | 72.4% | 54.2% | Reflects higher level of gains on disposition of equipment due |
Lease fleet utilization | 94.9% | 94.4% | |
(1) | See supplemental segment information on page 9 for additional information. |
(2) | Excludes Brazil deliveries which are not consolidated into manufacturing revenue and margins. |
(3) | Includes Net gain on disposition of equipment, which is excluded from gross margin. |
Conference Call
Greenbrier will host a teleconference to discuss its first quarter 2019 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. Teleconference details are as follows:
- January 9, 2019
- 8:00 a.m. Pacific Standard 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?headquartered in Lake Oswego, Oregon?is a leading international supplier of equipment and services to global freight transportation markets. Greenbrier designs, builds and markets freight railcars and marine barges in North America. Greenbrier Europe is an end-to-end freight railcar manufacturing, engineering and repair business with operations in Poland, Romania and Turkey that serves customers across Europe and in the nations of the Gulf Cooperation Council. Greenbrier builds freight railcars and rail castings in Brazil through two separate strategic partnerships. We are a leading provider of freight railcar wheel services, parts, repair, refurbishment and retrofitting services in North America through our wheels, repair & parts business unit. Greenbrier offers railcar management, regulatory compliance services and leasing services to railroads and related transportation industries in North America. Through unconsolidated joint ventures, we produce industrial and rail castings, tank heads and other components. Greenbrier owns a lease fleet of over 9,600 railcars and performs management services for 358,000 railcars. Learn more about Greenbrier at www.gbrx.com.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This press release may contain forward-looking statements, including any statements that are not purely statements of historical fact. Greenbrier uses words such as "affirms," "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 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 that are not indicative of Greenbrier's financial results; uncertainty or changes in the credit markets and financial services industry; high levels of indebtedness and compliance with the terms of Greenbrier's 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; policies and priorities of the federal government regarding international trade, taxation and infrastructure; 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 Greenbrier's insurance coverage; train derailments or other accidents or claims that could subject Greenbrier to legal claims; actions or inactions by various regulatory agencies including potential environmental remediation obligations or changing tank car or other railcar or railroad regulation; and issues arising from investigations of whistleblower complaints; all as may be discussed in more detail under the headings "Risk Factors" and "Forward Looking Statements" in Greenbrier's Annual Report on Form 10-K for the fiscal year ended August 31, 2018, and Greenbrier's 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, Greenbrier does not assume any obligation to update any forward-looking statements.
Adjusted EBITDA, Adjusted net earnings attributable to Greenbrier and Adjusted diluted EPS are not financial measures under generally accepted accounting principles (GAAP). These metrics are performance measurement tools commonly 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 (benefit), Depreciation and amortization and excluding 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. 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.
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.
THE GREENBRIER COMPANIES, INC. | |||||
Consolidated Balance Sheets | |||||
(In thousands, unaudited) | |||||
November 30, 2018 | August 31, 2018 | May 31, 2018 | February 28, 2018 | November 30, 2017 | |
Assets | |||||
Cash and cash equivalents | $ 462,797 | $ 530,655 | $ 589,969 | $ 586,008 | $ 591,406 |
Restricted cash | 8,872 | 8,819 | 9,204 | 8,875 | 8,839 |
Accounts receivable, net | 306,917 | 348,406 | 322,328 | 321,795 | 315,393 |
Inventories | 492,573 | 432,314 | 396,518 | 408,419 | 411,371 |
Leased railcars for syndication | 233,415 | 130,926 | 158,194 | 168,748 | 130,991 |
Equipment on operating leases, net | 317,282 | 322,855 | 302,074 | 258,417 | 274,598 |
Property, plant and equipment, net | 461,120 | 457,196 | 424,035 | 429,465 | 426,961 |
Investment in unconsolidated affiliates | 58,682 | 61,414 | 75,884 | 98,009 | 101,529 |
Intangibles and other assets, net | 95,958 | 94,668 | 82,030 | 83,308 | 83,819 |
Goodwill | 77,508 | 78,211 | 70,347 | 69,011 | 67,783 |
$ 2,515,124 | $ 2,465,464 | $2,430,583 | $ 2,432,055 | $ 2,412,690 | |
Liabilities and Equity | |||||
Revolving notes | $ 22,189 | $ 27,725 | $ 20,337 | $ 7,990 | $ 6,885 |
Accounts payable and accrued liabilities | 438,304 | 449,857 | 447,827 | 461,088 | 441,373 |
Deferred income taxes | 30,631 | 31,740 | 36,657 | 41,257 | 69,984 |
Deferred revenue | 108,566 | 105,954 | 102,919 | 85,886 | 120,044 |
Notes payable, net | 487,764 | 436,205 | 437,833 | 559,755 | 558,987 |
Contingently redeemable noncontrolling | 28,449 | 29,768 | 31,135 | 33,046 | 35,209 |
Total equity - Greenbrier | 1,257,631 | 1,250,101 | 1,225,512 | 1,095,447 | 1,032,557 |
Noncontrolling interest | 141,590 | 134,114 | 128,363 | 147,586 | 147,651 |
Total equity | 1,399,221 | 1,384,215 | 1,353,875 | 1,243,033 | 1,180,208 |
$ 2,515,124 | $ 2,465,464 | $2,430,583 | $ 2,432,055 | $ 2,412,690 | |
THE GREENBRIER COMPANIES, INC. | ||||||
Consolidated Statements of Income | ||||||
(In thousands, except per share amounts, unaudited) | ||||||
Three Months Ended | ||||||
2018 | 2017 | |||||
Revenue | ||||||
Manufacturing | $ | 471,789 | $ 451,485 | |||
Wheels, Repair & Parts | 108,543 | 78,011 | ||||
Leasing & Services | 24,191 | 30,039 | ||||
604,523 | 559,535 | |||||
Cost of revenue | ||||||
Manufacturing | 417,805 | 380,850 | ||||
Wheels, Repair & Parts | 100,978 | 72,506 | ||||
Leasing & Services | 13,207 | 16,865 | ||||
531,990 | 470,221 | |||||
Margin | 72,533 | 89,314 | ||||
Selling and administrative | 50,432 | 47,043 | ||||
Net gain on disposition of equipment | (14,353) | (19,171) | ||||
Earnings from operations | 36,454 | 61,442 | ||||
Other costs | ||||||
Interest and foreign exchange | 4,404 | 7,020 | ||||
Earnings before income tax and earnings (loss) from unconsolidated affiliates | 32,050 | 54,422 | ||||
Income tax expense | (9,135) | (18,135) | ||||
Earnings before earnings (loss) from unconsolidated affiliates | 22,915 | 36,287 | ||||
Earnings (loss) from unconsolidated affiliates | 467 | (2,910) | ||||
Net earnings | 23,382 | 33,377 | ||||
Net earnings attributable to noncontrolling interest | (5,426) | (7,124) | ||||
Net earnings attributable to Greenbrier | $ | 17,956 | $ 26,253 | |||
Basic earnings per common share: | $ | 0.55 | $ 0.90 | |||
Diluted earnings per common share: | $ | 0.54 | $ 0.83 | |||
Weighted average common shares: | ||||||
Basic | 32,640 | 29,332 | ||||
Diluted | 33,093 | 32,696 | ||||
Dividends declared per common share | $ | 0.25 | $ 0.23 | |||
THE GREENBRIER COMPANIES, INC. | ||||||
Consolidated Statements of Cash Flows | ||||||
(In thousands, unaudited) | ||||||
Three Months Ended November 30, | ||||||
2018 | 2017 | |||||
Cash flows from operating activities: | ||||||
Net earnings | $ | 23,382 | $ 33,377 | |||
Adjustments to reconcile net earnings to net cash used in operating | ||||||
Deferred income taxes | (2,360) | (5,865) | ||||
Depreciation and amortization | 20,700 | 18,370 | ||||
Net gain on disposition of equipment | (14,353) | (19,171) | ||||
Accretion of debt discount | 1,076 | 1,024 | ||||
Stock based compensation expense | 3,194 | 5,939 | ||||
Noncontrolling interest adjustments | 3,920 | (875) | ||||
Other | 286 | 477 | ||||
Decrease (increase) in assets: | ||||||
Accounts receivable, net | 54,834 | (35,510) | ||||
Inventories | (63,045) | (16,311) | ||||
Leased railcars for syndication | (116,726) | (35,541) | ||||
Other | (392) | 6,304 | ||||
Increase (decrease) in liabilities: | ||||||
Accounts payable and accrued liabilities | (10,949) | 16,676 | ||||
Deferred revenue | 3,314 | (8,548) | ||||
Net cash used in operating activities | (97,119) | (39,654) | ||||
Cash flows from investing activities: | ||||||
Proceeds from sales of assets | 34,497 | 75,060 | ||||
Capital expenditures | (28,677) | (29,893) | ||||
Investment in and advances to unconsolidated affiliates | (11,393) | - | ||||
Cash distribution from joint ventures | 1,784 | - | ||||
Net cash provided by (used in) investing activities | (3,789) | 45,167 | ||||
Cash flows from financing activities: | ||||||
Net change in revolving notes with maturities of 90 days or less | (4,840) | 2,561 | ||||
Proceeds from issuance of notes payable | 225,000 | 2,138 | ||||
Debt issuance costs | (2,766) | - | ||||
Repayments of notes payable | (173,453) | (2,809) | ||||
Investment by joint venture partner | - | 6,500 | ||||
Cash distribution to joint venture partner | (3,185) | (26,900) | ||||
Dividends | (467) | (319) | ||||
Tax payments for net share settlement of restricted stock | (4,747) | (5,061) | ||||
Net cash provided by (used in) financing activities | 35,542 | (23,890) | ||||
Effect of exchange rate changes | (2,439) | (1,736) | ||||
Decrease in cash and cash equivalents and restricted cash | (67,805) | (20,113) | ||||
Cash and cash equivalents and restricted cash | ||||||
Beginning of period | 539,474 | 620,358 | ||||
End of period | $ | 471,669 | $ 600,245 | |||
Balance Sheet Reconciliation | ||||||
Cash and cash equivalents | $ | 462,797 | $ 591,406 | |||
Restricted cash | 8,872 | 8,839 | ||||
Total cash, cash equivalents and restricted cash as presented above | $ | 471,669 | $ 600,245 | |||
THE GREENBRIER COMPANIES, INC. | ||||||||||
Supplemental Information | ||||||||||
(In thousands, except per share amounts, unaudited) | ||||||||||
Operating Results by Quarter for 2018 are as follows: | ||||||||||
First | Second | Third | Fourth | Total | ||||||
Revenue | ||||||||||
Manufacturing | $ 451,485 | $ 511,827 | $ 510,099 | $ 571,175 | $ 2,044,586 | |||||
Wheels, Repair & Parts | 78,011 | 88,710 | 94,515 | 85,787 | 347,023 | |||||
Leasing & Services | 30,039 | 28,799 | 36,773 | 32,244 | 127,855 | |||||
559,535 | 629,336 | 641,387 | 689,206 | 2,519,464 | ||||||
Cost of revenue | ||||||||||
Manufacturing | 380,850 | 429,165 | 427,875 | 489,517 | 1,727,407 | |||||
Wheels, Repair & Parts | 72,506 | 80,708 | 85,850 | 79,266 | 318,330 | |||||
Leasing & Services | 16,865 | 14,116 | 19,155 | 14,536 | 64,672 | |||||
470,221 | 523,989 | 532,880 | 583,319 | 2,110,409 | ||||||
Margin | 89,314 | 105,347 | 108,507 | 105,887 | 409,055 | |||||
Selling and administrative expense | 47,043 | 50,294 | 51,793 | 51,309 | 200,439 | |||||
Net gain on disposition of equipment | (19,171) | (5,817) | (14,825) | (4,556) | (44,369) | |||||
Earnings from operations | 61,442 | 60,870 | 71,539 | 59,134 | 252,985 | |||||
Other costs | ||||||||||
Interest and foreign exchange | 7,020 | 7,029 | 6,533 | 8,786 | 29,368 | |||||
Earnings before income tax and earnings (loss) from unconsolidated affiliates | 54,422 | 53,841 | 65,006 | 50,348 | 223,617 | |||||
Income tax benefit (expense) | (18,135) | 11,301 | (15,944) | (10,115) | (32,893) | |||||
Earnings before earnings (loss) from unconsolidated affiliates | 36,287 | 65,142 | 49,062 | 40,233 | 190,724 | |||||
Earnings (loss) from unconsolidated affiliates | (2,910) | 147 | (12,823) | (3,075) | (18,661) | |||||
Net earnings | 33,377 | 65,289 | 36,239 | 37,158 | 172,063 | |||||
Net earnings attributable to noncontrolling interest | (7,124) | (3,647) | (3,288) | (6,223) | (20,282) | |||||
Net earnings attributable to Greenbrier | $ 26,253 | $ 61,642 | $ 32,951 | $ 30,935 | $ 151,781 | |||||
Basic earnings per common share (1) | $ 0.90 | $ 2.10 | $ 1.03 | $ 0.95 | $ 4.92 | |||||
Diluted earnings per common share (1) | $ 0.83 | $ 1.91 | $ 1.01 | $ 0.94 | $ 4.68 | |||||
(1) | Quarterly amounts do 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 2024 Convertible Notes using the treasury stock method when dilutive, restricted stock units that are not considered participating securities, restricted stock units that are subject to performance criteria for which actual levels of performance above target have been achieved and the dilutive effect of shares underlying the 2018 Convertible Notes, during the periods in which they were outstanding, using the "if converted" method in which debt issuance and interest costs, net of tax, were added back to net earnings. The 2018 Convertible notes matured on April 1, 2018. |
THE GREENBRIER COMPANIES, INC. | ||||||||||||
Supplemental Information | ||||||||||||
(In thousands, unaudited) | ||||||||||||
Segment Information | ||||||||||||
Three months ended November 30, 2018: | ||||||||||||
Revenue | Earnings (loss) from operations | |||||||||||
External | Intersegment | Total | External | Intersegment | Total | |||||||
Manufacturing | $ 471,789 | $ 6,201 | $ 477,990 | $ 36,855 | $ 433 | $37,288 | ||||||
Wheels, Repair & Parts | 108,543 | 15,981 | 124,524 | 3,247 | 312 | 3,559 | ||||||
Leasing & Services | 24,191 | 5,999 | 30,190 | 17,513 | 5,452 | 22,965 | ||||||
Eliminations | - | (28,181) | (28,181) | - | (6,197) | (6,197) | ||||||
Corporate | - | - | - | (21,161) | - | (21,161) | ||||||
$ 604,523 | $ - | $ 604,523 | $ 36,454 | $ - | $ 36,454 | |||||||
Three months ended August 31, 2018: | ||||||||||||
Revenue | Earnings (loss) from operations | |||||||||||
External | Intersegment | Total | External | Intersegment | Total | |||||||
Manufacturing | $ 571,175 | $ 33,904 | $ 605,079 | $ 62,312 | $ 3,905 | $ 66,217 | ||||||
Wheels, Repair & Parts | 85,787 | 13,931 | 99,718 | 3,648 | 534 | 4,182 | ||||||
Leasing & Services | 32,244 | 1,992 | 34,236 | 17,473 | 1,750 | 19,223 | ||||||
Eliminations | - | (49,827) | (49,827) | - | (6,189) | (6,189) | ||||||
Corporate | - | - | - | (24,299) | - | (24,299) | ||||||
$ 689,206 | $ - | $ 689,206 | $ 59,134 | $ - | $ 59,134 | |||||||
Total assets | |||||
November 30, 2018 | August 31, 2018 | ||||
Manufacturing | $ 998,820 | $ 1,020,757 | |||
Wheels, Repair & Parts | 322,525 | 306,756 | |||
Leasing & Services | 691,389 | 578,818 | |||
Unallocated | 502,390 | 559,133 | |||
$ 2,515,124 | $ 2,465,464 | ||||
THE GREENBRIER COMPANIES, INC. | |||||||
Supplemental Information | |||||||
(In thousands, excluding backlog and delivery units, unaudited) | |||||||
Reconciliation of Net earnings to Adjusted EBITDA | |||||||
Three Months Ended | |||||||
November 30, | August 31, 2018 | ||||||
Net earnings | $ 23,382 | $ 37,158 | |||||
Interest and foreign exchange | 4,404 | 8,786 | |||||
Income tax expense | 9,135 | 10,115 | |||||
Depreciation and amortization | 20,700 | 19,195 | |||||
Adjusted EBITDA | $ 57,621 | $ 75,254 | |||||
Three Months November 30, | |||
Backlog Activity (units) | |||
Beginning backlog | 27,400 | ||
Orders received (1) | 5,400 | ||
Production held as Leased railcars for syndication | (1,100) | ||
Production sold directly to third parties (1) | (4,200) | ||
Ending backlog | 27,500 | ||
Delivery Information (units) | |||
Production sold directly to third parties (1) | 4,200 | ||
Sales of Leased railcars for syndication | 300 | ||
Total deliveries | 4,500 | ||
(1) | Includes Greenbrier-Maxion, our Brazilian railcar manufacturer, which is accounted for under the equity method |
THE GREENBRIER COMPANIES, INC. | ||
Supplemental Information | ||
(In thousands, except per share amounts, unaudited) | ||
Reconciliation of common shares outstanding, adjusted net earnings attributable to Greenbrier and adjusted | ||
The shares used in the computation of the Company's basic and diluted earnings per common share are reconciled as | ||
Three Months Ended | ||
November 30, 2018 | August 31, | |
Weighted average basic common shares outstanding (1) | 32,640 | 32,663 |
Dilutive effect of convertible notes (2) | - | - |
Dilutive effect of restricted stock units (3) | 453 | 357 |
Weighted average diluted common shares outstanding | 33,093 | 33,020 |
(1) | Restricted stock grants and restricted stock units that are considered participating securities, 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 2024 Convertible notes was excluded for the three months ended November 30, 2018 and August 31, 2018 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. |
(3) | Restricted stock units that are not considered participating securities and restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in Weighted average diluted shares outstanding when the Company is in a net earnings position. |
Three Months Ended | |||||
November 30, | August 31, 2018 | ||||
Net earnings attributable to Greenbrier | $ 17,956 | $ 30,935 | |||
Non-recurring Tax Act benefit(1) | - | (4,535) | |||
Adjusted net earnings attributable to Greenbrier | $ 17,956 | $ 26,400 | |||
Three Months Ended | |||||
November 30, | August 31, 2018 | ||||
Net earnings attributable to Greenbrier | $ 17,956 | $ 30,935 | |||
Weighted average diluted common shares outstanding | 33,093 | 33,020 | |||
Diluted earnings per share | $ 0.54 | $ 0.94 | |||
Non-recurring Tax Act benefit(1) | - | (0.14) | |||
Adjusted diluted earnings per share | $ 0.54 | $ 0.80 | |||
(1) | Non-recurring benefit of $4.5 million in the three months ended August 31, 2018 related to the 2017 Tax Act. |
SOURCE The Greenbrier Companies, Inc. (GBX)
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