About UsInvestorsNews RoomContact Us
AutoMax
Printer Friendly Version View printer-friendly version
<< Back
Greenbrier Reports Fiscal Second Quarter EPS of $0.45 and Announces Strategies to Enhance Margins and Improve Capital Efficiency
~ Targeting minimum 200 basis points of margin enhancement and $100 million of capital efficiency improvements by end of FY 2014
~~ Diverse backlog grows by 2,000 units in quarter with orders for an additional 3,700 units received after quarter end

LAKE OSWEGO, Ore., April 4, 2013 /PRNewswire/ -- The Greenbrier Companies (NYSE: GBX) today reported results for its second quarter ended February 28, 2013.

Second Quarter Highlights                                                                                                      

  • Net earnings for the second quarter were $13.8 million, or $.45 per diluted share, on revenue of $423.2 million.
  • Adjusted EBITDA for the quarter was $36.2 million, or 8.6% of revenue.
  • Net debt was reduced by $55 million during the quarter, driven by strong quarterly earnings and working capital improvements.
  • New railcar deliveries were 2,700 units in the second quarter.
  • Since September 1, 2012, the beginning of the Company's fiscal year, Greenbrier has received orders for 9,600 railcar units valued at over $1 billion, of which 1,400 units were received during the first quarter, 4,500 units during the second quarter, and 3,700 units subsequent to the February 28, 2013 quarter end.
  • New railcar manufacturing backlog as of February 28, 2013 was 11,700 units with an estimated value of $1.30 billion (average unit sale price of $111,000), compared to 9,700 units with an estimated value of $1.11 billion (average unit sale price of $114,000) as of November 30, 2012. 
  • Marine backlog totaled $9 million as of February 28, 2013. Additionally, we are party to a letter of intent for 15 barges valued at $60 million, subject to significant permitting and other conditions.

Strategic Initiatives

  • Company unveils strategic plans to increase gross margins by at least 200 basis points and reduce capital employed by $100 million by the end of fiscal 2014.
  • During the quarter, the Company reached agreement to sell substantially all the assets of its non-core roller bearings parts operation and acquired an additional repair facility in Poland.

William A. Furman, president and chief executive officer said, "Our business momentum continues to improve, validating the strength of our integrated business model.  Our strategy is to diversify our product offerings, shift production to our lower cost manufacturing footprint in Mexico, and increase throughput in our lease syndication and management services businesses.  Since September 1, 2012, we have received diverse orders for 9,600 railcars in North America and Europe valued at over $1 billion."

Furman continued, "Our integrated model differentiates Greenbrier from industry peers.  However, we can extract more value out of our model and further enhance overall performance in each of our operating segments through a series of initiatives designed to improve capital efficiency and enhance margins.  We intend to liberate $100 million of capital by no later than the end of our fiscal 2014 by selling non-core or underperforming operations, particularly in our underperforming Wheel Services, Refurbishment & Parts segment, reducing working capital and refining our leasing model to take more of our assets and debt off the balance sheet in a tax efficient manner.  We intend to redeploy this $100 million of liberated capital to invest in new opportunities, pay down debt, or return to shareholders.  The announced sale of the assets of our roller bearings parts operation is the first of many steps in this regard."

"We have set a target to grow gross margins by at least 200 bps to 13.5% of revenue by the fourth quarter of our fiscal 2014.  This improvement equates to about $40 million of incremental EBITDA on an annualized forward run rate.  Our capital efficiency initiatives, coupled with specifically identified cost reduction and efficiency improvement initiatives, and currently favorable industry and backlog tailwinds are expected to drive this improvement.  Assuming economic and industry fundamentals continue to be favorable, we believe these actions will comprise the first step of a multi-phase campaign to improve margins and capital efficiency and enhance Greenbrier's return on invested capital and shareholder value," Furman concluded.

Mark Rittenbaum, chief financial officer, also noted, "In order to provide more granularity on the performance of each of our segments, we expect to begin providing operating margin by business segment starting in the first fiscal quarter of 2014.  We will also periodically report the progress made on our initiatives starting after our third fiscal quarter of 2013."

Financial Summary


Q2 FY13

Q1 FY13

Sequential Comparison – Main Drivers

Revenue

$423.2M

$415.4M

Up 1.9% due principally to increased Marine activity and higher average sales price on new railcar deliveries

Gross margin

11.4%

11.5%

Down 10 bps due to lower margins in Wheel Services, Refurbishment & Parts and Leasing & Services segments, partially offset by higher margins in Manufacturing

Selling and

Administrative expense

$24.9M

$26.1M

Down due to lower employee related costs

Gain on disposition

of equipment

$3.1M

$1.4M

Timing of sales fluctuates and is opportunistic; typically ranges from $1.0M - $4.0M per quarter

Adjusted EBITDA

$36.2M

$31.8M

Up 13.8% due to higher gains on equipment dispositions, and lower S&A expense

Effective tax rate

27.8%

26.7%

32% estimated annualized rate; difference is due to certain discrete tax items

Net earnings

$13.8M

$10.4M

Up due to higher EBITDA and lower earnings attributable to our GIMSA JV partner's Noncontrolling interest

Diluted EPS – GAAP

$0.45

$0.35

"If converted" calculation

Economic EPS

$0.49

$0.37

Excludes "if converted" impact of out-of-the-money bonds due 2018

 

Segment Summary


Q2 FY13

Q1 FY13

Sequential Comparison – Main Drivers

Manufacturing

  Revenue

$294.0M

$285.4M

Up 3.0% due to increased Marine activity and higher average sales price

  Gross margin

10.7%

9.4%

Up 130 bps due to improved product mix and operating efficiencies

  Deliveries

2,700

2,900

Down due to lower railcar deliveries in Europe

Wheel Services, Refurbishment & Parts

  Revenue

$112.0M

$112.1M

Slight decline due to timing of scrap programs, offset by improved wheel volumes

  Gross margin

7.9%

9.5%

Down 160 bps due to increased operating costs, lower efficiencies and lower scrap prices

Leasing & Services

  Revenue

$17.2M

$17.9M

Down 4.1% due to lower interim rents and lease renewal rates on certain railcars

  Gross margin

47.0%

57.4%

Down due to lower earnings on certain railcars, and lower interim rents.  Prior period also includes reduction in certain maintenance accruals.

  Lease fleet utilization

97.5%

95.2%

Reflects additional units placed into service

 

Business Outlook
Based on current business trends and industry forecasts, management currently anticipates the Company's new railcar deliveries in 2013 to be about 13,000 units. Management anticipates that 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 second quarter results.  In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation and strategic initiatives presentation to our website (www.gbrx.com).  Teleconference details are as follows:

  • April 4, 2013
  • 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.  Following the call, a webcast replay will be available for 30 days.  Telephone replay will be available through April 20, 2013, at 203-369-3310.

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 four 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 9,200 railcars, and performs management services for approximately 225,000 railcars.

"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:  This presentation 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 strategic initiatives and future financial performance. Greenbrier uses words such as "anticipates," "believes,"  "forecast," "potential," "goal," "contemplates," "expects," "intends," "initiatives," "targets," "plans," "projects," "hopes," "seeks," "estimates," "could," "would," "will," "may," "can," "designed to," "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 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, 2012, 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 for any periodic progress reports on strategic initiatives, 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 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)



February 28, 2013

November 30, 2012

August 31, 2012

May 31,      2012

February 29, 2012

Assets






   Cash and cash equivalents

$       55,637

$       41,284

$       53,571

$       44,915

$       40,666

   Restricted cash

8,899

7,322

6,277

6,089

2,249

   Accounts receivable, net 

144,933

163,385

146,326

172,086

177,544

   Inventories

359,281

363,642

316,741

346,122

365,811

   Leased railcars for syndication

36,198

54,297

97,798

66,776

79,681

   Equipment on operating leases, net

344,576

362,522

362,968

334,872

322,811

   Property, plant and equipment, net

194,887

186,715

182,429

172,729

165,700

   Goodwill

134,316

137,066

137,066

137,066

137,066

   Intangibles and other assets, net

86,194

79,500

81,368

84,693

85,155


$  1,364,921

$  1,395,733

$  1,384,544

$  1,365,348

$  1,376,683







Liabilities and Equity






   Revolving notes

$       50,058

$       89,826

$       60,755

$       71,430

$     101,446

   Accounts payable and accrued liabilities

278,221

282,925

329,508

323,977

340,328

   Deferred income taxes

99,965

96,498

95,363

88,514

89,623

   Deferred revenue

23,178

28,283

17,194

17,872

1,230

   Notes payable

427,553

427,697

428,079

428,028

428,454







   Total equity - Greenbrier

461,136

447,080

431,777

418,161

399,788

   Noncontrolling interest

24,810

23,424

21,868

17,366

15,814

   Total equity

485,946

470,504

453,645

435,527

415,602


$  1,364,921

$  1,395,733

$  1,384,544

$  1,365,348

$  1,376,683

 

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Income

(In thousands, except per share amounts, unaudited)









Three Months Ended


Six Months Ended




February 28,

2013


February 29,

 2012


February 28,

2013


February 29,

2012


Revenue










Manufacturing


$      294,047


$      320,206


$      579,416


$      582,863


Wheel Services, Refurbishment & Parts


111,952


119,894


224,051


237,643


Leasing & Services


17,167


18,086


35,073


35,879




423,166


458,186


838,540


856,385












Cost of revenue










Manufacturing


262,650


290,851


521,142


527,040


Wheel Services, Refurbishment & Parts


103,134


106,554


204,610


212,445


Leasing & Services


9,107


9,295


16,735


18,958




374,891


406,700


742,487


758,443












Margin


48,275


51,486


96,053


97,942












Selling and administrative expense


24,942


24,979


51,042


48,214


Net gain on disposition of equipment


(3,076)


(2,654)


(4,484)


(6,312)


Earnings from operations


26,409


29,161


49,495


56,040












 Other costs










Interest and foreign exchange


6,322


6,630


12,222


12,014


Earnings before income taxes and earnings 

  (loss) from unconsolidated affiliates


20,087


22,531


37,273


44,026












Income tax expense


(5,590)


(5,348)


(10,176)


(13,144)


Earnings before earnings (loss) from

  unconsolidated affiliates


14,497


17,183


27,097


30,882












Earnings (loss) from unconsolidated affiliates


(105)


72


(145)


(300)












Net earnings


14,392


17,255


26,952


30,582


Net (earnings) loss attributable to

    noncontrolling interest


(553)


415


(2,686)


1,604


Net earnings attributable to Greenbrier


$        13,839


$        17,670


$        24,266


$        32,186












Basic earnings per common share


$            0.51


$            0.66


$            0.89


$            1.23












Diluted earnings per common share


$            0.45


$            0.57


$            0.80


$            1.04












Weighted average common shares:










Basic


27,210


26,683


27,177


26,073


Diluted


34,044


33,668


34,018


33,528


 

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Cash Flows

(In thousands, unaudited)







Six Months Ended




February 28, 2013


February 29, 2012


Cash flows from operating activities






Net earnings


$              26,952


$              30,582


Adjustments to reconcile net earnings to net

  cash provided by (used in) operating activities:






Deferred income taxes


4,203


5,828


Depreciation and amortization


21,398


20,322


Net gain on disposition of equipment


(4,484)


(6,312)


Accretion of debt discount


1,725


1,599


Stock based compensation expense


2,887


3,490


Other


(1,612)


3,759


Decrease (increase) in assets:






Accounts receivable


3,079


8,898


Inventories


(27,208)


(43,751)


Leased railcars for syndication


56,960


(52,925)


Other


245


(603)


Increase (decrease) in liabilities:






Accounts payable and accrued liabilities


(56,493)


25,854


           Deferred revenue


5,936


(4,657)


Net cash provided by (used in) operating activities


33,588


(7,916)


Cash flows from investing activities






Proceeds from sales of assets


22,301


20,058


Capital expenditures


(35,525)


(35,713)


Increase in restricted cash


(2,622)


(136)


Investment in and net advances to unconsolidated affiliates


(386)


70


Other


(3,582)


22


Net cash used in investing activities


(19,814)


(15,699)


Cash flows from financing activities






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


(16,579)


(18,716)


Proceeds from revolving notes with maturities longer than 90 days


19,968


46,646


Repayments of revolving notes with maturities longer than 90 days


(14,998)


(15,818)


Proceeds from issuance of notes payable


-


2,500


Repayments of notes payable


(2,251)


(4,784)


Investment by joint venture partner


1,949


-


Excess tax benefit from restricted stock awards


181


-


Net cash provided by (used in) financing activities


(11,730)


9,828


Effect of exchange rate changes


22


4,231


Increase (decrease) in cash and cash equivalents


2,066


(9,556)


Cash and cash equivalents






Beginning of period


53,571


50,222


End of period


$              55,637


$              40,666


 


THE GREENBRIER COMPANIES, INC.

Supplemental Information

Quarterly Results of Operations

(In thousands, except per share amounts, unaudited)







First


Second


2013





Revenue





   Manufacturing

$   285,368


$   294,047


   Wheel Services, Refurbishment & Parts

112,100


111,952


   Leasing & Services

17,906


17,167



415,374


423,166


Cost of revenue





   Manufacturing

258,492


262,650


   Wheel Services, Refurbishment & Parts

101,476


103,134


   Leasing & Services

7,627


9,107



367,595


374,891







Margin

47,779


48,275







Selling and administrative expense

26,100


24,942


Net gain on disposition of equipment

(1,408)


(3,076)


Earnings from operations

23,087


26,409







Other costs





   Interest and foreign exchange

5,900


6,322


Earnings before income tax and

   loss from unconsolidated affiliates

17,187


20,087







Income tax expense

(4,586)


(5,590)







Loss from unconsolidated affiliates

(40)


(105)


Net earnings

12,561


14,392


Net earnings attributable to

   noncontrolling interest

(2,134)


(553)


Net earnings attributable to Greenbrier

$     10,427


$     13,839







Basic earnings per common share: (1)

$         0.38


$         0.51


Diluted earnings per common share: (2)

$         0.35


$         0.45


 

(1)

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

(2)

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

 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.

 


Supplemental Information

Quarterly Results of Operations

(In thousands, except per share amounts, unaudited)













First


Second


Third


Fourth


Total


2012











Revenue











   Manufacturing

$   262,656


$   320,206


$   364,930


$       306,172


$   1,253,964


   Wheel Services, Refurbishment & Parts

117,749


119,894


125,145


119,077


481,865


   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, Refurbishment & Parts

105,891


106,554


111,610


109,486


433,541


   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 administrative expense

23,235


24,979


28,784


27,598


104,596


Net gain on disposition of equipment

(3,658)


(2,654)


(2,585)


(67)


(8,964)


Earnings from operations

26,880


29,161


35,739


27,008


118,788













Other costs











   Interest and foreign exchange

5,383


6,630


6,560


6,236


24,809


Earnings before income tax and earnings 

   (loss) from unconsolidated affiliates

21,497


22,531


29,179


20,772


93,979













Income tax expense

(7,797)


(5,348)


(8,655)


(10,593)


(32,393)













Earnings (loss) from unconsolidated

  affiliates

(372)


72


201


(317)


(416)


Net earnings

13,328


17,255


20,725


9,862


61,170


Net (earnings) loss attributable to

   Noncontrolling interest

1,189


415


(1,608)


(2,458)


(2,462)


Net earnings attributable to Greenbrier

$     14,517


$     17,670


$     19,117


$           7,404


$        58,708













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.

(2)

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





February 28,

2013


November 30,

2012


Net earnings attributable to Greenbrier

$       13,839


$       10,427


Interest and foreign exchange

6,322


5,900


Income tax expense

5,590


4,586


Depreciation and amortization

10,475


10,923









Adjusted EBITDA

$       36,226


$       31,836


 

(1)

Adjusted EBITDA is not a financial measure under generally accepted accounting principles (GAAP). We define Adjusted EBITDA as earnings attributable to Gr eenbrier 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, the Adjusted EBITDA measure presented may differ from and may not be comparable to similarly titled measures used by other companies.

 




Three Months Ended

February 28, 2013


Backlog Activity (units)





Beginning backlog

9,700


Orders received

4,500


Production held as Leased railcars for syndication

(300)


Production sold directly to third parties

(2,200)


Ending backlog

11,700





Delivery Information (units)



Production sold directly to third parties

2,200


Sales of Leased railcars for syndication

500


Total deliveries

2,700





 


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:




(In thousands)

Three Months Ended




February 28,

2013


November 30,

2012



Weighted average basic common shares outstanding (1)

27,210


27,144



Dilutive effect of warrants

789


802



Dilutive effect of convertible notes (2)

6,045


6,045



Weighted average diluted common shares outstanding

34,044


33,991


 

(1)

Restricted stock grants are treated as outstanding when issued and 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 as they were considered dilutive under the "if converted" method as further discussed below. The dilutive effect of the 2026 Convertible notes was excluded from the share calculations as the stock price for each period presented was less than the initial conversion price of $48.05 and therefore considered anti-dilutive.

    

Dilutive 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 the 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




February 28,

 2013


November 30,

 2012



Net earnings attributable to Greenbrier

$      13,839


$    10,427



Add back:






Interest and debt issuance costs on the

   2018 Convertible notes, net of tax

1,416


1,430



Earnings before interest and debt issuance                   

   costs on convertible notes

$      15,255


$    11,857









Weighted average diluted common shares outstanding

34,044


33,991









Diluted earnings per share (1)

$          0.45


$         0.35


 

(1)

Diluted earnings per share was calculated as follows:




Earnings before interest and debt issuance costs (net of tax) on convertible notes


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


February 28,

2013


November 30,

2012

Weighted average basic common shares outstanding

27,210


27,144

Dilutive effect of warrants

789


802

Weighted average economic diluted

common shares outstanding

27,999


27,946





Net earnings attributable to Greenbrier

$       13,839


$      10,427





Economic earnings per share

$           0.49


$          0.37

 

(1)

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.

 

SOURCE The Greenbrier Companies, Inc. (GBX)

Mark Rittenbaum, 503-684-7000

Stock Quote

GBX (Common Stock Symbol)
ExchangeNYSE
Price (US Dollars)$64.45
Change (%) Stock is Down $3.33 (4.91%)
Volume829,214
Market Cap$1,771,408,250
Data as of 07/31/14 4:03 p.m. ET
Minimum 20 minute delay
Refresh quote

Stock Chart