EX-99.1 2 v35204exv99w1.htm EXHIBIT 99.1 exv99w1
 

Exhibit 99.1
         
For release: November 6, 2007, 6:00 am EST
  Contact:   Mark Rittenbaum
503-684-7000
Greenbrier Reports Fiscal Fourth Quarter and Year-End 2007 Results
Fourth quarter EPS is $.82 on revenues of $351 million; results include special charges of $.14 per share
     Lake Oswego, Oregon, November 6, 2007 — The Greenbrier Companies [NYSE:GBX] today reported results for its fiscal fourth quarter and fiscal year ended August 31, 2007.
Financial Highlights
Fourth Quarter:
  •   Revenues for the quarter were up $85 million or 32% to $351 million vs. the prior year’s fourth quarter, driven by acquisition-related growth in refurbishment & parts.
 
  •   Net earnings for the quarter were $13.2 million, or $.82 per diluted share vs. $12.3 million, or $.76 per share, in the prior year’s fourth quarter. These results include a special charge of $2.3 million, or $.14 per diluted share, with no related tax benefit, associated with closure costs of the Company’s Canadian railcar manufacturing facility.
 
  •   Earnings before special charges for the quarter were $15.5 million, or $.96 per diluted share.
 
  •   EBITDA before special charges for the quarter was $43.0 million, or 12.3% of revenues.
Fiscal 2007:
  •   Revenues for the year were up 28%, to a record $1.224 billion, driven by acquisition-related growth in refurbishment & parts.
 
  •   Net earnings for the year were $22.0 million, or $1.37 per diluted share. These results include special charges net of a related tax benefit, of $13.7 million, or $.85 per diluted share, associated with closure costs and investment write-off for tax purposes of the Company’s Canadian railcar manufacturing facility.
 
  •   Earnings before special charges, net of a related tax benefit, for the year were $35.7 million, or $2.22 per diluted share.
 
  •   EBITDA before special charges for fiscal 2007 was $130 million, up 16% over 2006 EBITDA of $112 million.

 

 

Deliveries and Backlog:
  •   New railcar deliveries for the quarter were 2,400 units, compared to 3,200 units in the fourth quarter of 2006.
 
  •   Total new railcar deliveries were 8,600 units in fiscal 2007, compared to 11,400 units in fiscal 2006.
 
  •   Greenbrier’s new railcar manufacturing backlog as of August 31, 2007 was 12,100 units valued at $830 million, compared to 14,100 units valued at $970 million as of May 31, 2007.
 
  •   Subsequent to year end, a multi-year new railcar order was received from GE Equipment Services (“GE”) for 11,900 tank and covered hopper cars to be delivered over an eight-year period, commencing in the first quarter of fiscal 2009.
 
  •   Marine backlog as of August 31, 2007 was a record 12 vessels valued at approximately $110 million, compared to nine vessels valued at $90 million as of May 31, 2007.
Strategic Accomplishments:
  •   Revenues from the Company’s refurbishment & parts, leasing & services, and marine manufacturing businesses were a combined 44% of total revenues in 2007, compared to 26% of total revenues in 2006. The balance of revenues for each year was from new railcar manufacturing in North America and Europe. This change in mix in 2007 to a more stable revenue and earnings base is principally the result of strategic diversification and acquisition efforts completed during the year.
 
  •   The Company continued to strengthen its competitive position in the manufacturing of new railcars in North America. During the year, the Company closed its operations in Canada and expanded capacity in Mexico, through the start-up of the Company’s joint venture facility, Greenbrier-GIMSA. This facility is expected to be more cost-efficient, geographically advantaged, and flexible than the Canadian facility.
 
  •   Greenbrier continued to expand its new railcar offerings in North America into tank cars and to grow its market penetration in covered hopper cars, through the award of the GE multi-year order. Over 75% of new railcar industry backlog in North America as of September 30, 2007 is represented by these two car types, and future demand is anticipated to be strong.

 

 

Fourth Quarter Results:
     Revenues for the 2007 fiscal fourth quarter were $350.6 million, up from $265.2 million in the prior year’s fourth quarter. Gross margin for the quarter was 17.3% compared to 15.0% in the prior comparable period. EBITDA before special charges was $43.0 million, or 12.3% of revenues for the quarter, compared to $25.8 million, or 9.7% of revenues in the prior year’s fourth quarter. Net earnings were $13.2 million, or $.82 per diluted share for the quarter, compared to net earnings of $12.3 million, or $.76 per diluted share for the same period in 2006. Current period net earnings include a special charge of $2.3 million, or $.14 per diluted share, with no related tax benefit. This special charge is associated with severance and other closure costs of the Company’s Canadian railcar manufacturing facility. This facility’s last order was completed in early May 2007, and the disposition of the facility is in process.
     Greenbrier’s new railcar manufacturing backlog as of August 31, 2007 was 12,100 units valued at $830 million, compared to 14,100 units valued at $970 million as of May 31, 2007. Approximately 6,000 of the units included backlog as of August 31, 2007 are expected to be produced in 2008. Approximately 3,900 units included in the August 31, 2007 backlog that will be produced after 2008 are subject to Greenbrier’s fulfillment of certain competitive conditions.
     Subsequent to August 31, 2007, a multi-year order was received for 11,900 units to be delivered over an eight-year period commencing in the first quarter of 2009. Approximately 8,500 units under this contract are subject to the Company’s fulfillment of certain competitive conditions.
     In the manufacturing segment, fourth quarter revenues were $209.1 million, compared to $213.8 million in the fourth quarter of 2006. While current quarter new railcar deliveries of 2,400 units were down from the 3,200 units in the prior comparable period, revenues declined by only $4.7 million. The revenue per unit increased significantly due to a change in product mix. Marine manufacturing revenues also increased by nearly $10 million over the prior comparable period. For the full year, marine revenues were nearly $55 million, compared to about $40 million in 2006.
     Manufacturing margin for the quarter grew to 12.9% of revenues, compared to 10.7% of revenues into the fourth quarter of 2006. The operating momentum realized in the third quarter of 2007, where margins were 8.4%, continued in the current quarter. Margins benefitted from efficiencies of long production runs and a favorable product mix. Also, beginning in the fourth quarter of 2007, the Company’s Canadian operations, which are now shut down, no longer adversely impact manufacturing margins.

 

 

     The refurbishment & parts segment includes results for 35 shop locations across North America, which repair and refurbish railcars, provide wheel, axle and bearing services, and recondition and provide replacement railcar parts. Revenues for this segment in the current quarter were $116.9 million, compared to $28.0 million in the fourth quarter of 2006. This segment generated one-third of total Company revenues for the fourth quarter, on a revenue increase of $88.9 million over the same period of last year. About $80 million of this growth was from the acquisitions of Rail Car America (four repair shops and one parts location) and Meridian Rail Services (six wheel shops, one repair shop and one parts location) as well as the start-up of two new repair shops during the year. The remainder of the growth was principally due to higher volumes of refurbishment and retrofitting work.
     Gross margin for the refurbishment & parts segment grew to 17.7% of revenues, as compared to 15.1% of revenues in the prior comparable period. The margin growth is the result of increased railcar program maintenance volumes, favorable scrap prices, and a more favorable product mix.
     The leasing & services segment includes results from the Company’s owned lease fleet of approximately 9,000 railcars and from fleet management services provided for approximately 136,000 railcars. Revenues for this segment were $24.6 million, compared to $23.4 million in the same quarter last year. The revenue increase was principally due to a $2.3 million increase in gains on disposition of assets from the lease fleet, partially offset by a decrease in interest income from lower cash balances. Leasing & services margin for the quarter was 53.4% of revenues, compared to 54.2% of revenues in the same quarter last year.
     Selling and administrative expense for the quarter includes $2.3 million of overhead costs associated with the Canadian operation which was permanently closed in May 2007.
     William A. Furman, president and chief executive officer, said, “Fiscal 2007 was an exciting year for Greenbrier. We realized a number strategic accomplishments, including: 1) growth of our refurbishment & parts business through the acquisitions of Rail Car America and Meridian Rail Services; 2) expansion of our marine operations through capital expenditures; 3) enhancement of our manufacturing footprint by exiting our Canadian facility and expanding in Mexico; and 4) receipt of an 11,900 unit multi-year order for new tank and covered hopper cars, two car types where future demand is anticipated to be strong. These initiatives improve our

 

 

competitive positioning, enhance our integrated business model, and diversify our revenue and earnings base into higher margin, less cyclical businesses.”
Future Outlook
     Furman added, “We continue to be optimistic about the long term fundamentals of the railroad industry and our enhanced competitive position. In the near term, demand in the North American new railcar market, including demand for double stack intermodal railcars, is moderating as a result of softer rail loadings and supply/demand imbalances. As such, industry forecasts have been revised downward to 50,000 — 55,000 units to be built in 2008, compared to 65,000 units in 2007. We had anticipated these trends and have made changes to our new railcar production plans and rates. In addition, we are taking appropriate actions to reduce our costs. Our current outlook is for Greenbrier’s new railcar deliveries in fiscal 2008 to be down moderately from fiscal 2007 levels, with a product mix that is less favorable than 2007. Our past strategic decisions to grow our more stable marine manufacturing, refurbishment & parts, and leasing & services businesses were also made in anticipation of this operating environment, and we believe this business diversification should serve us well during this period, as well as in the future. Our strategic goals remain unchanged, and we continue to seek opportunities to grow these business units, both organically and through potential acquisitions.”
     Mark Rittenbaum, senior vice president and treasurer, said, “All three of our business segments performed well during the fourth quarter, particularly manufacturing, where operating momentum continued and our financial expectations for the quarter were exceeded. As we enter a challenging fiscal 2008, we will have the benefit of a new railcar backlog which includes approximately 6,000 railcars to be produced in 2008, a fully booked marine barge backlog, a full year of results from our Meridian and RCA acquisitions, and a lease fleet which is performing well. Our current lease fleet utilization is 98.1%, with an average remaining lease term of 3.1 years. These factors will help mitigate a downturn in the marketplace in 2008.”
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. The Company builds new railroad freight cars in its three manufacturing facilities in the U.S. and Mexico and marine barges at its U.S. facility. It also repairs and refurbishes freight cars and provides wheels and railcar parts at 35 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 9,000 railcars, and performs management services for approximately 136,000 railcars.

 

 

     “SAFE HARBOR” STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This release may contain forward-looking statements. Greenbrier uses words such as “anticipate,” “believe,” “plan,” “expect,” “future,” “intend” and similar expressions to identify forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, fluctuations in demand for newly manufactured railcars or failure to obtain orders as anticipated in developing forecasts; loss of one or more significant customers; 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 price increases 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 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” on page 8 of Part I , Item 1a and “Forward Looking Statements” on page 25 of Part II of our Annual Report on Form 10-K for the fiscal year ended August 31, 2006. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s opinions only as of the date hereof. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements.
     EBITDA is not a financial measure under GAAP. We define EBITDA as earnings from operations before special charges, interest and foreign exchange, taxes, depreciation and amortization. We consider net cash provided by operating activities to be the most directly comparable GAAP financial measure. EBITDA is a liquidity measurement tool commonly used by rail supply companies and we use EBITDA in that fashion. You should not consider EBITDA in isolation or as a substitute for cash flow from operations or other cash flow statement data determined in accordance with GAAP. In addition, because EBITDA is not a measure of financial performance under GAAP and is susceptible to varying calculations, the EBITDA measure presented may differ from and may not be comparable to similarly titled measures used by other companies.
     The Greenbrier Companies will host a teleconference to discuss fourth quarter and fiscal year end results. Teleconference details are as follows:
Tuesday, November 6, 2007
8:00 am Pacific Standard Time
Phone #: 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 replay will be available on the same website for 30 days. Telephone replay will be available through November 24, 2007 at 402-220-4085.

 

 

THE GREENBRIER COMPANIES, INC.
Consolidated Balance Sheets
August 31,
                 
(In thousands, except per share amounts)   2007     2006  
Assets
                
Cash and cash equivalents
   $ 20,808     $ 142,894  
Restricted cash
     2,693       2,056  
Accounts receivable
     157,038       115,565  
Inventories
     194,883       163,151  
Assets held for sale
     42,903       35,216  
Equipment on operating leases
     294,326       301,009  
Investment in direct finance leases
     9,040       6,511  
Property, plant and equipment
     112,813       80,034  
Goodwill
     168,987       2,896  
Intangibles and other assets
     69,258       27,982  
 
            
 
   $ 1,072,749     $ 877,314  
 
            
 
Liabilities and Stockholders’ Equity
                
Revolving notes
   $ 39,568     $ 22,429  
Accounts payable and accrued liabilities
     239,713       204,793  
Participation
     4,355       11,453  
Deferred income taxes
     61,410       37,472  
Deferred revenue
     18,052       17,481  
Notes payable
     460,915       362,314  
 
Subordinated debt
     —       2,091  
 
Minority interest
     5,146       —  
 
Stockholders’ equity:
     243,590       219,281  
 
            
 
   $ 1,072,749     $ 877,314  
 
            

 

 

THE GREENBRIER COMPANIES, INC.
Consolidated Statements of Operations
Years ended August 31,
                         
(In thousands, except per share amounts)   2007     2006     2005  
Revenue                        
Manufacturing
   $ 738,424     $ 748,818     $ 844,496  
Refurbishment & parts
     381,670       102,471       96,665  
Leasing & services
     103,734       102,534       83,061  
 
                  
 
     1,223,828       953,823       1,024,222  
 
Cost of revenue
                        
Manufacturing
     680,908       666,731       771,743  
Refurbishment & parts
     317,669       87,690       86,207  
Leasing & services
     45,818       42,023       41,099  
 
                  
 
     1,044,395       796,444       899,049  
 
                        
Margin
     179,433       157,379       125,173  
 
                        
Other costs                        
Selling and administrative
     83,414       70,918       57,425  
Interest and foreign exchange
     39,915       25,396       14,835  
Special charges
     21,899       —       2,913  
 
                  
 
     145,228       96,314       75,173  
Earnings before income tax, minority interest and equity in unconsolidated subsidiaries
     34,205       61,065       50,000  
Income tax expense
     (13,657 )     (21,698 )     (19,911 )
 
                  
Earnings before minority interest and equity in unconsolidated subsidiaries
     20,548       39,367       30,089  
Minority interest
     1,504       —       —  
Equity in earnings (loss) of unconsolidated subsidiaries
     (42 )     169       (267 )
 
                  
 
                        
Earnings from continuing operations
     22,010       39,536       29,822  
 
                        
Earnings from discontinued operations (net of tax)
     —       62       —  
 
                  
 
                        
Net earnings
   $ 22,010     $ 39,598     $ 29,822  
 
                  
 
                        
Basic earnings per common share:
                        
Continuing operations
   $ 1.37     $ 2.51     $ 1.99  
Discontinued operations
     —       —       —  
 
                  
 
   $ 1.37     $ 2.51     $ 1.99  
 
                  
Diluted earnings per common share:
                        
Continuing operations
   $ 1.37     $ 2.48     $ 1.92  
Discontinued operations
     —       —       —  
 
                  
 
   $ 1.37     $ 2.48     $ 1.92  
 
                  
Weighted average common shares:
                        
Basic
     16,056       15,751       15,000  
Diluted
     16,094       15,937       15,560  

 

 

THE GREENBRIER COMPANIES, INC.
Consolidated Statements of Cash Flows
Years ended August 31,
                         
(In thousands)   2007     2006     2005  
Cash flows from operating activities:
                        
Net earnings
   $ 22,010     $ 39,598     $ 29,822  
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
                        
Earnings from discontinued operations
     —       (62 )     —  
Deferred income taxes
     10,643       5,893       5,807  
Tax benefit of stock options exercised
     —       —       2,393  
Depreciation and amortization
     32,826       25,253       22,939  
Gain on sales of equipment
     (13,400 )     (10,948 )     (6,797 )
Special charges
     21,899       —       —  
Other
     (1,399 )     278       651  
Decrease (increase) in assets excluding acquisitions:
                        
Accounts and notes receivable
     (17,883 )     8,948       (32,328 )
Inventories
     14,260       (37,517 )     15,403  
Assets held for sale
     4,378       156       (38,495 )
Other
     (411 )     2,577       (5,167 )
Increase (decrease) in liabilities excluding acquisitions:
                        
Accounts payable and accrued liabilities
     (17,502 )     5,487       3  
Participation
     (7,098 )     (10,447 )     (15,207 )
Deferred revenue
     (1,996 )     10,326       4,285  
 
                  
Net cash provided by (used in) operating activities
     46,327       39,542       (16,691 )
 
                  
Cash flows from investing activities:
                        
Principal payments received under direct finance leases
     511       2,048       5,733  
Proceeds from sales of equipment
     119,695       28,863       32,528  
Investment in and net advances to unconsolidated subsidiaries
     (849 )     550       92  
Acquisitions, net of cash acquired
     (268,184 )     —       —  
Acquisition of joint venture interest
     —       —       8,435  
Decrease (increase) in restricted cash
     (454 )     (1,958 )     1,007  
Capital expenditures
     (137,294 )     (140,569 )     (69,123 )
 
                  
Net cash used in investing activities
     (286,575 )     (111,066 )     (21,328 )
 
                  
Cash flows from financing activities:
                        
Changes in revolving notes
     15,007       8,965       2,514  
Proceeds from issuance of notes payable
     99,441       154,567       169,752  
Repayments of notes payable
     (5,388 )     (13,191 )     (67,691 )
Repayment of subordinated debt
     (2,091 )     (6,526 )     (6,325 )
Investment by joint venture partner
     6,750       —       —  
Dividends paid
     (5,144 )     (5,042 )     (3,889 )
Net proceeds from equity offering
     —       —       127,462  
Repurchase and retirement of stock
     —       —       (127,538 )
Stock options and restricted stock awards exercised
     3,489       5,757       3,286  
Excess tax benefit of stock options exercised
     3,719       2,600       —  
Purchase of subsidiary’s shares subject to mandatory redemption
     —       (4,636 )     —  
 
                  
Net cash provided by financing activities
     115,783       142,494       97,571  
 
                  
Effect of exchange rate changes
     2,379       (1,280 )     1,542  
Increase (decrease) in cash and cash equivalents
     (122,086 )     69,690       61,094  
Cash and cash equivalents
                        
Beginning of period
     142,894       73,204       12,110  
 
                  
End of period
   $ 20,808     $ 142,894     $ 73,204  
 
                  

 

 

Supplemental Information
Quarterly Results of Operations (Unaudited)
     Operating results by quarter for 2007 and 2006 are as follows:
(In thousands, except per share amounts)
                                         
    First     Second     Third     Fourth     Total  
2007
                                        
Revenue
                                        
Manufacturing
   $ 168,692     $ 119,201     $ 241,399     $ 209,132     $ 738,424  
Refurbishment & parts
     51,236       95,311       118,213       116,910       381,670  
Leasing & services
     26,695       25,466       26,994       24,579       103,734  
 
                              
 
     246,623       239,978       386,606       350,621       1,223,828  
Cost of revenue
                                        
Manufacturing
     161,688       115,822       221,203       182,195       680,908  
Refurbishment & parts
     45,007       80,114       96,288       96,260       317,669  
Leasing & services
     10,811       12,220       11,339       11,448       45,818  
 
                              
 
     217,506       208,156       328,830       289,903       1,044,395  
 
                                        
Margin
     29,117       31,822       57,776       60,718       179,433  
 
                                        
Other costs
                                        
Selling and administrative
     17,124       18,800       20,092       27,398       83,414  
Interest and foreign exchange
     9,641       10,416       10,930       8,928       39,915  
Special charges
     —       16,485       3,091       2,323       21,899  
 
                              
 
     26,765       45,701       34,113       38,649       145,228  
 
                                        
Earnings (loss) before income tax, minority interest and equity in unconsolidated subsidiary
     2,352       (13,879 )     23,663       22,069       34,205  
 
                                        
Income tax benefit (expense)
     (580 )     8,229       (11,047 )     (10,259 )     (13,657 )
 
                                        
Minority interest
     (2 )     42       178       1,286       1,504  
 
                                        
Equity in earnings (loss) of unconsolidated subsidiary
     100       (463 )     223       98       (42 )
 
                                        
 
                              
Net earnings (loss)
   $ 1,870     $ (6,071 )   $ 13,017     $ 13,194     $ 22,010  
 
                              
 
                                        
Basic earnings per common share:
   $ 0.12     $ (0.38 )   $ 0.81     $ 0.82     $ 1.37  
Diluted earnings per common share:
   $ 0.12     $ (0.38 )   $ 0.81     $ 0.82     $ 1.37  

 

 

                                         
    First     Second     Third     Fourth     Total  
2006
                                        
Revenue
                                        
Manufacturing
   $ 141,835     $ 184,818     $ 208,405     $ 213,760     $ 748,818  
Refurbishment & parts
     22,761       24,104       27,647       27,959       102,471  
Leasing & services
     21,766       27,292       30,036       23,440       102,534  
 
                              
 
     186,362       236,214       266,088       265,159       953,823  
Cost of revenue
                                        
Manufacturing
     123,031       164,491       188,353       190,856       666,731  
Refurbishment & parts
     19,999       20,869       23,091       23,731       87,690  
Leasing & services
     10,439       10,671       10,172       10,741       42,023  
 
                              
 
     153,469       196,031       221,616       225,328       796,444  
 
                                        
Margin
     32,893       40,183       44,472       39,831       157,379  
 
                                        
Other costs
                                        
Selling and administrative
     15,541       17,092       17,896       20,389       70,918  
Interest and foreign exchange
     4,573       7,180       6,149       7,494       25,396  
 
                              
 
     20,114       24,272       24,045       27,883       96,314  
 
                                        
Earnings before income tax and equity in unconsolidated subsidiaries
     12,779       15,911       20,427       11,948       61,065  
 
                                        
Income tax benefit (expense)
     (4,934 )     (7,466 )     (9,866 )     568       (21,698 )
Equity in (loss) earnings of unconsolidated subsidiaries
     172       118       119       (240 )     169  
 
                              
 
                                        
Earnings from continuing operations
     8,017       8,563       10,680       12,276       39,536  
 
                                        
Earnings from discontinued operations (net of tax)
     —       —       —       62       62  
 
                                        
 
                              
Net earnings
   $ 8,017     $ 8,563     $ 10,680     $ 12,338     $ 39,598  
 
                              
 
                                        
Basic earnings per common share:
                                        
Continuing operations
   $ 0.52     $ 0.55     $ 0.67     $ 0.77     $ 2.51  
Discontinued operations
     —       —       —       —       —  
 
                              
 
   $ 0.52     $ 0.55     $ 0.67     $ 0.77     $ 2.51  
 
                              
Diluted earnings per common share:
                                        
Continuing operations
   $ 0.51     $ 0.54     $ 0.67     $ 0.76     $ 2.48  
Discontinued operations
     —       —       —       —       —  
 
                              
 
   $ 0.51     $ 0.54     $ 0.67     $ 0.76     $ 2.48  
 
                              

 

 

THE GREENBRIER COMPANIES, INC.
Supplemental Disclosure
Reconciliation of Net Cash Provided by (used in) Operating Activities to EBITDA
(In thousands, unaudited)
                 
    Year ending August 31,  
    2007     2006  
Net cash provided by operating activities
   $ 46,327     $ 39,542  
Earnings from discontinued operations
     —       62  
Changes in working capital
     26,252       20,470  
Deferred income taxes
     (10,643 )     (5,893 )
Gain on sales of equipment
     13,400       10,948  
Other
     1,399       (278 )
Income tax expense
     13,657       21,698  
Interest and foreign currency
     39,915       25,396  
 
            
EBITDA from continuing operations
   $ 130,307     $ 111,945  
 
            
                 
    Three months ending  
    August 31,     August 31,  
    2007     2006  
Net cash provided by operating activities
   $ 16,517     $ 33,849  
Earnings from discontinued operations
     —       62  
Changes in working capital
     11,415       (12,272 )
Deferred income taxes
     (7,955 )     (2,844 )
Gain on sales of equipment
     2,619       342  
Other
     1,251       (219 )
Income tax expense (benefit)
     10,259       (568 )
Interest and foreign currency
     8,929       7,493  
 
            
EBITDA from continuing operations
   $ 43,035     $ 25,843  
 
            
1 “EBITDA” (earnings from continuing operations before special charges, interest, taxes, depreciation and amortization) is a useful liquidity measurement tool commonly used by rail supply companies and Greenbrier. It should not be considered in isolation or as a substitute for cash flows from operating activities or cash flow statement data prepared in accordance with generally accepted accounting principles.