Form 8-K - Current report

GREENBRIER COMPANIES INC false 0000923120 0000923120 2025-01-08 2025-01-08

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

Form 8-K

 

 

Current Report

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) January 8, 2025

 

 

THE GREENBRIER COMPANIES, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Oregon		001-13146		93-0816972
(State of Incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

One Centerpointe Drive, Suite 200, Lake Oswego, OR 97035

(Address of principal executive offices) (Zip Code)

[phone]

Registrant’s telephone number, including area code

Former name or former address, if changed since last report: N/A

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock without par value		GBX		New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

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Item 2.02

Results of Operations and Financial Condition

On January 8, 2025, The Greenbrier Companies, Inc. (the “Company”) issued an earnings release reporting the Company’s financial results for the first fiscal quarter ended November 30, 2024. A copy of the release is furnished herewith as Exhibit 99.1 and is incorporated into this Item 2.02 by reference.

The information contained in this Item 2.02 of this Current Report on Form 8-K, including the exhibit, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any filings made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.

 

Item 9.01

Financial Statements and Exhibits

(d) Exhibits

 

Exhibit No.		Description
99.1		Earnings Release dated January 8, 2025 of The Greenbrier Companies, Inc. reporting the Company’s financial results for the first fiscal quarter ended November 30, 2024.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

				THE GREENBRIER COMPANIES, INC.
Date: January 8, 2025				By:		/s/ Michael J. Donfris
						Michael J. Donfris
						Senior Vice President, Chief Financial Officer

Exhibit 99.1

 

Earnings Release

 

One Centerpointe Drive, Suite 200, Lake Oswego, Oregon 97035 503-684-7000		www.gbrx.com

 

 

January 8, 2025		Contact:		Justin Roberts, Investor Relations
				Jack Isselmann, Media Relations
				Ph: 503-684-7000

Greenbrier Reports Strong First Quarter Results

Q1 Diluted EPS of $1.72 and aggregate gross margin of 19.8%

Affirms FY 2025 guidance

Renews $100 million share repurchase authorization

The Greenbrier Companies, Inc. (NYSE: GBX) (“Greenbrier”), a leading international supplier of equipment and services to global freight transportation markets, today reported financial results for its first fiscal quarter ended November 30, 2024.

First Quarter Highlights

 

•

Net earnings of $55 million, or $1.72 per diluted share, on revenue of $876 million.

 

•

Generated EBITDA of $145 million, or 16.6% of revenue.

 

•

Achieved operating margin of $112 million or 12.8% of revenue.

 

•

Grew lease fleet by 1,200 units to 16,700 units and maintained high lease fleet utilization of nearly 99%.

 

•

Quarterly new railcar orders for 3,800 units valued at $520 million and deliveries of 6,000 units, resulting in a new railcar backlog of 23,400 units with an estimated value of $3.0 billion.

 

•

Board declared a quarterly dividend of $0.30 per share, payable on February 19, 2025 to shareholders of record as of January 29, 2025, representing Greenbrier’s 43rd consecutive quarterly dividend.

 

•

On January 8, 2025, Board renewed and extended $100 million share repurchase authorization through January 31, 2027.

“Greenbrier achieved impressive results in the first quarter of fiscal 2025, delivering exceptional bottom-line performance and ROIC within our long-term range. The ongoing expansion of the lease fleet and the resulting recurring revenue is very encouraging. Our strong aggregate gross margin for the quarter was driven by a product mix weighted to more profitable railcar types and continued optimization in our manufacturing processes and capacity. We continue to streamline our business with the combination of our Manufacturing and Maintenance Services segments into one reportable segment, part of a strategic organizational alignment that commenced one year ago.” said Lorie L. Tekorius, CEO and President.

“While we observe demand easing slightly for certain railcar types and in some markets, we are affirming our full-year guidance and expect demand to increase as 2025 progresses. We are dedicated to executing our strategy to deliver strong performance, reduced cyclicality, and enhanced long-term shareholder value. Our results demonstrate our ability to thrive even in less than optimal business conditions. With a leading market position, a healthy backlog of new railcar orders, increasing predictability in growing areas of our business, and a continued focus on operational efficiencies, we anticipate sustainable results across various market conditions,” Tekorius concluded.

 

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Greenbrier Reports First Quarter Results (Cont.)		Page 2

 

Business Update & Outlook

Effective September 1, 2024, the Company combined the Maintenance Services and Manufacturing segments into a single reportable segment, Manufacturing, to better reflect the Company’s comprehensive operations that allow it to streamline production processes and resources to better serve customers. Additionally, the Company renamed the Leasing & Management Services reportable segment to Leasing & Fleet Management to reflect the realignment of the Company’s organizational and reporting structure. These changes had no impact on the Company’s consolidated results of operations or financial position. Prior period segment results have been recast to reflect the Company’s new reportable segments.

Based on current trends and production schedules, Greenbrier is affirming its Operating Metric guidance and updating Capital Expenditure guidance for fiscal 2025:

 

		FY 2024 Actuals		FY 2025 Guidance
Operating Metrics
Deliveries(1)		23,700 units		22,500 - 25,000 units
Revenue		$3.54B		$3.35B - $3.65B
Aggregate Gross Margin %		15.8%		16.0% - 16.5%
Operating Margin %(2)		9.2%		9.2% - 9.7%
Capital Expenditures
Manufacturing		$122M		$120M
Leasing & Fleet Management(3)		343M		360M
Gross Capital Expenditures		465M		480M
Equipment Sales Proceeds		75M		60M
Net Capital Expenditures		$390M		$420M

 

(1)	Includes approximately 1,400 units and 1,600 units of deliveries for FY2024 and FY2025 guidance, respectively, associated with Brazil.

(2)	Earnings from operations divided by revenue.

(3)	Included in FY2024 and FY2025 guidance are capital expenditures and transfers for railcars into the lease fleet that were manufactured and subsequently held on the balance sheet in 2023 and 2024, respectively.

 

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Greenbrier Reports First Quarter Results (Cont.)		Page 3

 

Financial Summary

 

		Q1 FY25		Q4 FY24		Sequential Comparison – Main Drivers
Revenue		$875.9M		$1,053.0M		Primarily fewer deliveries including timing of syndication activity
Aggregate Gross margin		$173.6M		$191.2M		Strong operating performance and beneficial product mix in Manufacturing partially offset by lower revenue
Aggregate Gross margin %		19.8%		18.2%
Selling and administrative expense		$62.0M		$67.9M		Lower employee-related costs including incentive compensation expense
Earnings from operations		$111.8M		$123.8M		Improved profitability and lower Selling & Administrative expense partially offsetting lower revenue
Operating margin %		12.8%		11.8%
EBITDA(1)		$145.1M		$158.9M
Effective tax rate		37.8%		33.5%		Impact of discrete tax items and geographic mix of earnings
Earnings from unconsolidated affiliates		$4.1M		$1.8M		Higher deliveries and improved operating efficiencies from Brazil JV’s
Net earnings attributable to Greenbrier		$55.3M		$61.6M		Strong operating performance partially impacted by lower revenue and higher tax rate
Diluted EPS		$1.72		$1.92

 

(1)	See reconciliation at conclusion of Supplemental Information.

Segment Summary

 

		Q1 FY25		Q4 FY24		Sequential Comparison – Main Drivers
Manufacturing
Revenue		$820.4M		$986.7M		Fewer deliveries including less railcars delivered for syndication
Gross margin %		17.1%		14.6%		Robust operating performance and beneficial product mix
Earnings from operations		$116.1M		$120.3M		Strong margin performance partially offset by lower revenue
Operating margin % (1)		14.2%		12.2%
Deliveries (units) (2)		5,600		6,800		Fewer deliveries including less railcars delivered for syndication
Leasing & Fleet Management
Revenue		$55.5M		$66.3M		Less syndication activity partially offset by growing recurring revenue
Gross margin %		60.5%		71.5%		Primarily reflects syndication of fewer internally produced railcars and impact of externally sourced syndication activity that generated margin dollars at a lower margin %
Earnings from operations		$26.7M		$39.0M
Operating margin % (1)		48.1%		58.8%
Owned fleet (units)		16,700		15,500
Fleet utilization		98.6%		98.5%

 

(1)	See supplemental segment information in Supplemental Information.

(2)	Excludes Brazil deliveries which are not consolidated into Manufacturing revenue and margins.

 

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Greenbrier Reports First Quarter Results (Cont.)		Page 4

 

Conference Call

Greenbrier will host a teleconference to discuss its first quarter 2025 results. In conjunction with this release, Greenbrier has posted a supplemental earnings presentation to our website. Teleconference details are as follows:

 

•

January 8, 2025

 

•

2:00 p.m. Pacific Standard Time

 

•

Phone: [phone] (Toll Free), 1-412-317-6061 (International), Entry Number “0218896”

 

•

Webcast access at http://www.gbrx.com

 

•

Please access the site 10-15 minutes prior to the start time.

About Greenbrier

Greenbrier, headquartered in Lake Oswego, Oregon, is a leading international supplier of equipment and services to global freight transportation markets. Through its wholly-owned subsidiaries and joint ventures, Greenbrier designs, builds and markets freight railcars in North America, Europe and Brazil. We are a leading provider of freight railcar wheel services, parts, maintenance and retrofitting services in North America. Greenbrier owns a lease fleet of approximately 16,700 railcars that originate primarily from Greenbrier’s manufacturing operations. Greenbrier offers railcar management, regulatory compliance services and leasing services to railroads and other railcar owners in North America. Learn more about Greenbrier at www.gbrx.com.

 

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Greenbrier Reports First Quarter Results (Cont.)		Page 5

 

THE GREENBRIER COMPANIES, INC.

CONSOLIDATED BALANCE SHEETS

(In millions, unaudited)

 

		November 30, 2024				August 31, 2024				May 31, 2024				February 29, 2024				November 30, 2023
Assets
Cash and cash equivalents		$	300.0			$	351.8			$	271.6			$	252.0			$	307.3
Restricted cash			12.9				16.8				20.2				20.0				14.0
Accounts receivable, net			583.0				523.8				488.5				519.1				458.7
Income tax receivable			26.7				45.1				20.0				20.9				10.5
Inventories			753.8				770.9				812.4				827.0				883.6
Leased railcars for syndication			228.1				130.7				155.3				134.4				159.8
Equipment on operating leases, net			1,234.1				1,243.5				1,226.9				1,160.5				1,095.8
Property, plant and equipment, net			695.5				711.7				648.3				636.1				618.1
Investment in unconsolidated affiliates			83.9				87.3				90.3				90.0				89.4
Intangibles and other assets, net			242.1				244.4				254.3				255.6				248.9
Goodwill			127.4				128.5				128.0				128.0				128.6
		$	4,287.5			$	4,254.5			$	4,115.8			$	4,043.6			$	4,014.7
Liabilities and Equity
Revolving notes		$	444.9			$	351.6			$	348.4			$	300.8			$	279.4
Accounts payable and accrued liabilities			653.1				731.4				652.9				649.3				640.9
Deferred income taxes			131.4				130.1				82.9				79.7				85.2
Deferred revenue			45.5				58.9				74.0				81.5				42.2
Notes payable, net			1,394.5				1,404.2				1,413.9				1,421.8				1,479.4
Contingently redeemable noncontrolling interest			43.1				41.7				56.3				56.0				56.5
Total equity – Greenbrier			1,412.7				1,376.1				1,329.1				1,299.9				1,274.0
Noncontrolling interest			162.3				160.5				158.3				154.6				157.1
Total equity			1,575.0				1,536.6				1,487.4				1,454.5				1,431.1
		$	4,287.5			$	4,254.5			$	4,115.8			$	4,043.6			$	4,014.7

 

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Greenbrier Reports First Quarter Results (Cont.)		Page 6

 

THE GREENBRIER COMPANIES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In millions, except number of shares which are reflected in thousands and per share amounts, unaudited)

 

		Three Months Ended November 30,
		2024				2023
Revenue
Manufacturing		$	820.4			$	759.7
Leasing & Fleet Management			55.5				49.1
			875.9				808.8
Cost of revenue
Manufacturing			680.4				672.5
Leasing & Fleet Management			21.9				15.0
			702.3				687.5
Margin			173.6				121.3
Selling and administrative expense			62.0				56.3
Net (gain) loss on disposition of equipment			(0.2	)			0.1
Earnings from operations			111.8				64.9
Interest and foreign exchange			23.4				23.2
Earnings before income tax and earnings from unconsolidated affiliates			88.4				41.7
Income tax expense			(33.4	)			(10.0	)
Earnings before earnings from unconsolidated affiliates			55.0				31.7
Earnings from unconsolidated affiliates			4.1				1.5
Net earnings			59.1				33.2
Net earnings attributable to noncontrolling interest			(3.8	)			(2.0	)
Net earnings attributable to Greenbrier		$	55.3			$	31.2
Basic earnings per common share:		$	1.77			$	1.00
Diluted earnings per common share:		$	1.72			$	0.96
Weighted average common shares:
Basic			31,246				31,025
Diluted			32,223				32,782
Dividends per common share		$	0.30			$	0.30

 

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Greenbrier Reports First Quarter Results (Cont.)		Page 7

THE GREENBRIER COMPANIES, INC.

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions, unaudited)

 

		Three Months Ended November 30,
		2024				2023
Cash flows from operating activities
Net earnings		$	59.1			$	33.2
Adjustments to reconcile net earnings to net cash used in operating activities:
Deferred income taxes			(1.4	)			(29.3	)
Depreciation and amortization			29.2				26.8
Net (gain) loss on disposition of equipment			(0.2	)			0.1
Stock based compensation expense			4.2				3.4
Noncontrolling interest adjustments			4.4				0.4
Other			0.9				0.9
Decrease (increase) in assets:
Accounts receivable, net			(65.3	)			72.6
Income tax receivable			18.4				31.7
Inventories			(0.4	)			(61.6	)
Leased railcars for syndication			(83.3	)			(20.0	)
Other assets			1.9				4.9
Increase (decrease) in liabilities:
Accounts payable and accrued liabilities			(20.8	)			(103.2	)
Deferred revenue			(11.8	)			(4.6	)
Net cash used in operating activities			(65.1	)			(44.7	)
Cash flows from investing activities
Proceeds from sales of assets			0.6				0.4
Capital expenditures			(59.1	)			(68.3	)
Cash distribution from unconsolidated affiliates and other			4.8				0.6
Net cash used in investing activities			(53.7	)			(67.3	)
Cash flows from financing activities
Net change in revolving notes with maturities of 90 days or less			122.0				31.0
Proceeds from revolving notes with maturities longer than 90 days			5.0				90.1
Repayments of revolving notes with maturities longer than 90 days			(31.2	)			(139.9	)
Proceeds from issuance of notes payable			0.2				178.6
Repayments of notes payable			(10.8	)			(9.7	)
Debt issuance costs			(0.9	)			(2.5	)
Repurchase of stock			—				(1.3	)
Dividends			(10.4	)			(10.3	)
Cash distribution to joint venture partner			(5.0	)			—
Tax payments for net share settlement of restricted stock			(5.5	)			(5.2	)
Net cash provided by financing activities			63.4				130.8
Effect of exchange rate changes			(0.3	)			(0.2	)
Increase (decrease) in cash, cash equivalents and restricted cash			(55.7	)			18.6
Cash and cash equivalents and restricted cash
Beginning of period			368.6				302.7
End of period		$	312.9			$	321.3
Balance Sheet Reconciliation:
Cash and cash equivalents		$	300.0			$	307.3
Restricted cash			12.9				14.0
Total cash and cash equivalents and restricted cash		$	312.9			$	321.3

 

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Greenbrier Reports First Quarter Results (Cont.)		Page 8

THE GREENBRIER COMPANIES, INC.

 

SUPPLEMENTAL LEASING INFORMATION

(In millions, except owned fleet, unaudited)

Greenbrier’s leasing strategy provides an additional “go to market” element to Greenbrier’s Commercial strategy of direct sales, partnerships with operating leasing companies, and origination of leases for syndication partners as well as providing a platform for further growth at scale. Investing in leasing assets also provides a recurring stream of revenue and tax-advantaged cash flows, however in the short-term it reduces Greenbrier’s Manufacturing revenue and margin as a result of deferring revenue recognition.

During the April 2023 Investor Day, Greenbrier provided a long-term target to more than double recurring revenue from leasing and management fees by investing up to $300 million net annually for the next five years. Recurring revenue is defined as Leasing & Fleet Management revenue excluding the impact of syndication activity, which is more transactional in nature.

Key information for the Leasing & Fleet Management segment:

 

		Three Months Ended
		November 30, 2024				August 31, 2024
Greenbrier Lease Fleet (Units)(1)
Beginning balance			15,500				15,200
Railcars added			1,800				1,700
Railcars sold / scrapped			(600	)			(1,400	)
Ending balance			16,700				15,500
		November 30, 2024				August 31, 2024
Equipment on operating lease(2)		$	1,234.1			$	1,243.5
Non-recourse warehouse		$	193.6			$	194.9
ABS non-recourse notes			467.7				471.6
Non-recourse term loan			317.4				320.5
Total Leasing non-recourse debt		$	978.7			$	987.0
Fleet leverage %(3)(4)			79	%			79	%

 

(1)	Owned fleet includes Leased railcars for syndication

(2)	The $600 million U.S. corporate revolver borrowing base includes Equipment on operating lease assets that do not currently secure the Leasing non-recourse term loan

(3)	Total Leasing non-recourse debt / Equipment on operating lease

(4)	Fleet assets are leveraged at Fair Market Value based on independent appraisals while they are shown at net book value on Greenbrier’s Consolidated Balance Sheet

 

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Greenbrier Reports First Quarter Results (Cont.)		Page 9

THE GREENBRIER COMPANIES, INC.

 

SUPPLEMENTAL INFORMATION

(In millions, except per share amounts, unaudited)

Operating Results by Quarter for Fiscal 2024 are as follows:

 

		First				Second				Third				Fourth				Total
Revenue
Manufacturing		$	759.7			$	811.0			$	755.0			$	986.7			$	3,312.4
Leasing & Fleet Management			49.1				51.7				65.2				66.3				232.3
			808.8				862.7				820.2				1,053.0				3,544.7
Cost of revenue
Manufacturing			672.5				725.4				672.2				842.9				2,913.0
Leasing & Fleet Management			15.0				15.1				24.2				18.9				73.2
			687.5				740.5				696.4				861.8				2,986.2
Margin			121.3				122.2				123.8				191.2				558.5
Selling and administrative expense			56.3				63.6				59.3				67.9				247.1
Net loss (gain) on disposition of equipment			0.1				(4.9	)			(7.8	)			(0.5	)			(13.1	)
Earnings from operations			64.9				63.5				72.3				123.8				324.5
Interest and foreign exchange			23.2				24.6				24.7				28.3				100.8
Earnings before income tax and earnings from unconsolidated affiliates			41.7				38.9				47.6				95.5				223.7
Income tax expense			(10.0	)			(9.3	)			(10.7	)			(32.0	)			(62.0	)
Earnings before earnings from unconsolidated affiliates			31.7				29.6				36.9				63.5				161.7
Earnings from unconsolidated affiliates			1.5				4.0				3.7				1.8				11.0
Net earnings			33.2				33.6				40.6				65.3				172.7
Net earnings attributable to noncontrolling interest			(2.0	)			(0.2	)			(6.7	)			(3.7	)			(12.6	)
Net earnings attributable to Greenbrier		$	31.2			$	33.4			$	33.9			$	61.6			$	160.1
Basic earnings per common share (1)		$	1.00			$	1.08			$	1.09			$	1.98			$	5.15
Diluted earnings per common share (1)		$	0.96			$	1.03			$	1.06			$	1.92			$	4.96
Dividends per common share		$	0.30			$	0.30			$	0.30			$	0.30			$	1.20

 

(1)	Quarterly amounts may not total to the year-to-date amount as each period is calculated discretely.

 

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Greenbrier Reports First Quarter Results (Cont.)		Page 10

THE GREENBRIER COMPANIES, INC.

 

SUPPLEMENTAL INFORMATION

(In millions, unaudited)

Segment Information

 

Three months ended November 30, 2024:
		Revenue												Earnings (loss) from operations
		External				Intersegment				Total				External				Intersegment				Total
Manufacturing		$	820.4			$	2.8			$	823.2			$	116.1			$	—			$	116.1
Leasing & Fleet Management			55.5				0.2				55.7				26.7				—				26.7
Eliminations			—				(3.0	)			(3.0	)			—				—				—
Corporate			—				—				—				(31.0	)			—				(31.0	)
		$	875.9			$	—			$	875.9			$	111.8			$	—			$	111.8

 

Three months ended August 31, 2024:
		Revenue												Earnings (loss) from operations
		External				Intersegment				Total				External				Intersegment				Total
Manufacturing		$	986.7			$	40.1			$	1,026.8			$	120.3			$	4.6			$	124.9
Leasing & Fleet Management			66.3				0.3				66.6				39.0				—				39.0
Eliminations			—				(40.4	)			(40.4	)			—				(4.6	)			(4.6	)
Corporate			—				—				—				(35.5	)			—				(35.5	)
		$	1,053.0			$	—			$	1,053.0			$	123.8			$	—			$	123.8

 

		Total assets
		November 30, 2024				August 31, 2024
Manufacturing		$	2,134.7			$	2,172.4
Leasing & Fleet Management			1,775.3				1,633.6
Unallocated, including cash			377.5				448.5
		$	4,287.5			$	4,254.5

BACKLOG AND DELIVERY INFORMATION

(Unaudited)

 

		Three Months Ended
		November 30, 2024
Backlog Activity (units) (1)
Beginning backlog			26,700
Orders received			3,800
Production held on the Balance Sheet			(1,900	)
Production sold to third parties			(5,200	)
Ending backlog			23,400
Delivery Information (units) (1)
Direct sales			5,200
Sale of Leased railcars for syndication			800
Total deliveries			6,000

 

(1)	Includes Greenbrier-Maxion, our Brazilian railcar manufacturer, which is accounted for under the equity method

 

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Greenbrier Reports First Quarter Results (Cont.)		Page 11

THE GREENBRIER COMPANIES, INC.

 

SUPPLEMENTAL INFORMATION

(In millions, unaudited)

Reconciliation of Net earnings to EBITDA

 

		Three Months Ended
		November 30, 2024				August 31, 2024
Net earnings		$	59.1			$	65.3
Interest and foreign exchange			23.4				28.3
Income tax expense			33.4				32.0
Depreciation and amortization			29.2				33.3
EBITDA		$	145.1			$	158.9

Debt Summary

 

		November 30, 2024				August 31, 2024
Total Leasing non-recourse debt		$	978.7			$	987.0
Total other debt			876.5				785.5
			1,855.2				1,772.5
Debt discount and issuance costs			(15.8	)			(16.7	)
Total consolidated debt		$	1,839.4			$	1,755.8

 

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Greenbrier Reports First Quarter Results (Cont.)		Page 12

 

Forward-Looking Statements

This press release may contain forward-looking statements, including statements that are not purely statements of historical fact. Greenbrier uses words, and variations of words, such as “affect,” “anticipate,” “approximately,” “are,” “backlog,” “believe,” “drive,” “estimate,” “expect,” “grow,” “may,” “ongoing,” “position,” “recurring,” “result,” “schedule,” “strategy,” “strong,” “sustainable,” “target,” and similar expressions to identify forward-looking statements. These forward-looking statements include, without limitation, statements about our guidance and outlook, backlog and other orders, leasing performance, leasing strategy, financing, cash flow, tax treatment, and other information regarding future performance and strategies and appear throughout this press release. These forward-looking statements are not guarantees of future performance and are subject to certain risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements. Factors that might cause such a difference include, but are not limited to, the following: an economic downturn and economic uncertainty; inflation (including rising energy prices, interest rates, wages and other escalators) and policy reactions thereto (including actions by central banks); disruptions in the supply of materials and components used in the production of our products; increased tariffs or import duties; labor disputes; loss of market share to other modes of freight shipment; and the war in Ukraine and related events. Our backlog of railcar units and other orders not included in backlog are not necessarily indicative of future results of operations. Certain orders in backlog are subject to customary documentation which may not occur. More information on potential factors that could cause our results to differ from our forward-looking statements is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Except as otherwise required by law, the Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s opinions only as of the date hereof.

Financial Metric Definitions

EBITDA is not a financial measure under generally accepted accounting principles (GAAP). This metric is a performance measurement tool used by rail supply companies and Greenbrier. You should not consider this metric in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because this metric is not a measure of financial performance under GAAP and is susceptible to varying calculations, the measure presented may differ from and may not be comparable to similarly titled measures used by other companies.

We define EBITDA as Net earnings before Interest and foreign exchange, Income tax expense, Depreciation and amortization. We believe the presentation of 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.

ROIC is calculated by dividing the trailing four quarters of net operating profit after tax by the average trailing five quarters of total invested capital. Net operating profit after tax is defined as Earnings from operations, plus Earnings from unconsolidated affiliates, excluding the impact associated with items we do not believe are indicative of our core business or which affect comparability, less cash paid for income taxes, net. Total invested capital is defined as Revolving notes, plus Notes payable, plus Total equity, less cash in excess of $40 million. We believe ROIC is useful to investors as it quantifies how efficiently we generated operating income relative to the capital we have invested in the business.

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.

 

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Document and Entity Information	Jan. 08, 2025
Cover [Abstract]
Entity Registrant Name	GREENBRIER COMPANIES INC
Amendment Flag	false
Entity Central Index Key	0000923120
Document Type	8-K
Document Period End Date	Jan. 08, 2025
Entity Incorporation State Country Code	OR
Entity File Number	001-13146
Entity Tax Identification Number	93-0816972
Entity Address, Address Line One	One Centerpointe Drive
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	Lake Oswego
Entity Address, State or Province	OR
Entity Address, Postal Zip Code	97035
City Area Code	(503)
Local Phone Number	684-7000
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Common Stock without par value
Trading Symbol	GBX
Security Exchange Name	NYSE
Entity Emerging Growth Company	false

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