Oregon | 93-0816972 | |
(State of Incorporation) | (I.R.S. Employer Identification No.) |
One Centerpointe Drive, Suite 200, Lake Oswego, OR | 97035 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
THE GREENBRIER COMPANIES, INC. |
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Date: April 7, 2011 | By: | /s/ Mark J. Rittenbaum | |||
Mark J. Rittenbaum | |||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
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News Release One Centerpointe Drive Suite 200 Lake Oswego, Oregon 97035 503-684-7000 |
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For release: April 7, 2011, 6:00 am EDT
|
Contact: | Mark Rittenbaum | ||
503-684-7000 |
| Revenues for the second quarter of 2011 were $286.3 million, up from $200.0 million in the prior years second quarter. | ||
| Adjusted EBITDA for the quarter was $19.4 million, or 6.8% of revenues, compared to $15.9 million, or 8.0% of revenues in the second quarter of 2010. | ||
| The Companys net loss for the quarter was $550 thousand or $.02 per diluted share, compared to a net loss of $4.8 million, or $.28 per diluted share, in the prior years second quarter. 1 |
| The Company ended the quarter with $99.1 million of cash and $108.6 million of committed additional borrowing capacity. | ||
| The Company enhanced its balance sheet, cash flow and liquidity through (i) the sale of 3,000,000 shares of common stock during the second quarter, which generated approximately $63 million in net proceeds, and (ii) the sale, subsequent to the quarter end, of $230 million of 3.5% senior convertible notes due 2018, which are convertible into shares of Greenbrier common stock at an initial conversion price of $38.05 per share. | ||
| The Company will reduce annual cash interest expense by over $10 million and extend its debt maturities by using the net proceeds from the sale of the senior convertible notes and cash on hand to retire all of Greenbriers outstanding $235 million aggregate principal amount of 8 3/8% senior notes due 2015. |
| New railcar deliveries in the second quarter of 2011 were 2,200 units, compared to 800 units in the second quarter of 2010. | ||
| Greenbriers new railcar manufacturing backlog as of February 28, 2011 was 9,500 units with an estimated value of $720 million. Subsequent to quarter end, the Company received orders for an additional 2,400 units. |
1 | Net earnings (loss) is now referred to in the Consolidated Statements of Operations, in accordance with GAAP, as Net earnings (loss) attributable to controlling interest. |
| Thursday, April 7, 2011 | ||
| 8:00 am Pacific Daylight Time | ||
| Phone : 1-630-395-0143, Password: Greenbrier | ||
| Real-time Audio Access: (Newsroom at http://www.gbrx.com) |
February 28, | August 31, | |||||||
2011 | 2010 | |||||||
Assets |
||||||||
Cash and cash equivalents |
$ | 99,089 | $ | 98,864 | ||||
Restricted cash |
1,927 | 2,525 | ||||||
Accounts receivable, net |
115,465 | 89,252 | ||||||
Inventories |
250,379 | 204,626 | ||||||
Assets held for sale |
62,566 | 12,804 | ||||||
Equipment on operating leases, net |
295,414 | 302,663 | ||||||
Investment in direct finance leases |
131 | 1,795 | ||||||
Property, plant and equipment, net |
144,163 | 132,614 | ||||||
Goodwill |
137,066 | 137,066 | ||||||
Intangibles and other assets |
84,837 | 90,679 | ||||||
$ | 1,191,037 | $ | 1,072,888 | |||||
Liabilities and Equity |
||||||||
Revolving notes |
$ | 10,000 | $ | 2,630 | ||||
Accounts payable and accrued liabilities |
226,285 | 181,638 | ||||||
Deferred income taxes |
85,805 | 81,136 | ||||||
Deferred revenue |
5,791 | 11,377 | ||||||
Notes payable |
499,997 | 498,700 | ||||||
Total equity Greenbrier |
351,181 | 285,938 | ||||||
Noncontrolling interest |
11,978 | 11,469 | ||||||
Total equity |
363,159 | 297,407 | ||||||
$ | 1,191,037 | $ | 1,072,888 | |||||
Three Months Ended | Six Months Ended | |||||||||||||||
February 28, | February 28, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenue |
||||||||||||||||
Manufacturing |
$ | 156,621 | $ | 88,065 | $ | 242,062 | $ | 148,143 | ||||||||
Wheel Services, Refurbishment & Parts |
112,015 | 94,329 | 209,160 | 187,310 | ||||||||||||
Leasing & Services |
17,665 | 17,556 | 36,523 | 36,189 | ||||||||||||
286,301 | 199,950 | 487,745 | 371,642 | |||||||||||||
Cost of revenue |
||||||||||||||||
Manufacturing |
147,552 | 81,608 | 227,300 | 137,455 | ||||||||||||
Wheel Services, Refurbishment & Parts |
101,413 | 83,387 | 187,824 | 166,673 | ||||||||||||
Leasing & Services |
8,725 | 10,789 | 17,845 | 21,707 | ||||||||||||
257,690 | 175,784 | 432,969 | 325,835 | |||||||||||||
Margin |
28,611 | 24,166 | 54,776 | 45,807 | ||||||||||||
Other costs |
||||||||||||||||
Selling and administrative |
17,693 | 16,958 | 35,632 | 33,166 | ||||||||||||
Interest and foreign exchange |
10,536 | 12,406 | 20,839 | 23,517 | ||||||||||||
28,229 | 29,364 | 56,471 | 56,683 | |||||||||||||
Earnings (loss) before income taxes and
loss from unconsolidated affiliates |
382 | (5,198 | ) | (1,695 | ) | (10,876 | ) | |||||||||
Income tax benefit (expense) |
(100 | ) | 944 | 512 | 3,444 | |||||||||||
Earnings (loss) before loss from
unconsolidated affiliates |
282 | (4,254 | ) | (1,183 | ) | (7,432 | ) | |||||||||
Loss from unconsolidated affiliates |
(575 | ) | (131 | ) | (1,162 | ) | (314 | ) | ||||||||
Net loss |
(293 | ) | (4,385 | ) | (2,345 | ) | (7,746 | ) | ||||||||
Net earnings attributable to
noncontrolling interest |
(257 | ) | (367 | ) | (509 | ) | (250 | ) | ||||||||
Net loss attributable to Greenbrier |
$ | (550 | ) | $ | (4,752 | ) | $ | (2,854 | ) | $ | (7,996 | ) | ||||
Basic loss per common share |
$ | (0.02 | ) | $ | (0.28 | ) | $ | (0.13 | ) | $ | (0.47 | ) | ||||
Diluted loss per common share |
$ | (0.02 | ) | $ | (0.28 | ) | $ | (0.13 | ) | $ | (0.47 | ) | ||||
Weighted average common shares: |
||||||||||||||||
Basic |
23,310 | 17,113 | 22,030 | 17,100 | ||||||||||||
Diluted |
23,310 | 17,113 | 22,030 | 17,100 |
Six Months Ended | ||||||||
February 28, | ||||||||
2011 | 2010 | |||||||
Cash flows from operating activities |
||||||||
Net loss |
$ | (2,345 | ) | $ | (7,746 | ) | ||
Adjustments to reconcile net loss to net cash provided by (used
in) operating activities: |
||||||||
Deferred income taxes |
4,669 | 7,727 | ||||||
Depreciation and amortization |
18,626 | 18,616 | ||||||
Gain on sales of equipment |
(2,594 | ) | (951 | ) | ||||
Accretion of debt discount |
3,620 | 4,263 | ||||||
Stock based compensation expense |
2,554 | 2,737 | ||||||
Other |
55 | (1,252 | ) | |||||
Decrease (increase) in assets: |
||||||||
Accounts receivable |
(24,360 | ) | (2,913 | ) | ||||
Inventories |
(44,563 | ) | (13,349 | ) | ||||
Assets held for sale |
(49,329 | ) | 10,610 | |||||
Other |
4,393 | 2,268 | ||||||
Increase (decrease) in liabilities: |
||||||||
Accounts payable and accrued liabilities |
43,006 | (6,810 | ) | |||||
Deferred revenue |
(5,477 | ) | (5,410 | ) | ||||
Net cash provided by (used in) operating activities |
(51,745 | ) | 7,790 | |||||
Cash flows from investing activities |
||||||||
Principal payments received under direct finance leases |
43 | 235 | ||||||
Proceeds from sales of equipment |
13,752 | 3,069 | ||||||
Investment in and advances to unconsolidated affiliates |
(279 | ) | (450 | ) | ||||
Decrease (increase) in restricted cash |
598 | (66 | ) | |||||
Capital expenditures |
(30,132 | ) | (19,616 | ) | ||||
Net cash used in investing activities |
(16,018 | ) | (16,828 | ) | ||||
Cash flows from financing activities |
||||||||
Net change in revolving notes with maturities of 90 days or less |
(2,888 | ) | 1,541 | |||||
Proceeds from revolving notes with maturities longer than 90 days |
10,000 | | ||||||
Net proceeds from issuance of notes payable |
| 1,712 | ||||||
Repayments of notes payable |
(2,323 | ) | (4,041 | ) | ||||
Gross proceeds from equity offering |
63,180 | | ||||||
Expenses from equity offering |
(405 | ) | | |||||
Other |
26 | | ||||||
Net cash provided by (used in) financing activities |
67,590 | (788 | ) | |||||
Effect of exchange rate changes |
398 | 1,546 | ||||||
Increase (decrease) in cash and cash equivalents |
225 | (8,280 | ) | |||||
Cash and cash equivalents |
||||||||
Beginning of period |
98,864 | 76,187 | ||||||
End of period |
$ | 99,089 | $ | 67,907 | ||||
Three Months Ended | Six Months Ended | |||||||||||||||
February 28, | February 28, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net loss
attributable to Greenbrier |
$ | (550 | ) | $ | (4,752 | ) | $ | (2,854 | ) | $ | (7,996 | ) | ||||
Interest and foreign exchange |
10,536 | 12,406 | 20,839 | 23,517 | ||||||||||||
Income tax expense (benefit) |
100 | (944 | ) | (512 | ) | (3,444 | ) | |||||||||
Depreciation and amortization |
9,307 | 9,224 | 18,626 | 18,616 | ||||||||||||
Adjusted EBITDA |
$ | 19,393 | $ | 15,934 | $ | 36,099 | $ | 30,693 | ||||||||
(1) | Adjusted EBITDA is not a financial measure under generally accepted accounting principles (GAAP). We define Adjusted EBITDA as earnings (loss) attributable to Greenbrier before interest and foreign exchange, income tax expense (benefit), 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. |
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