Operating results by quarter for 2012 are as follows:


(In thousands, except per share amount)	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		23,235			24,979			28,784			27,598			104,596
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. Dilutive 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.

Quarterly Results of Operations (Unaudited)

Operating results by quarter for 2011 are as follows:


(In thousands, except per share amount)	First			Second			Third			Fourth			Total
2011
Revenue
Manufacturing	$	85,440		$	156,621		$	173,487		$	305,554		$	721,102
Wheel Services, Refurbishment & Parts		95,268			112,015			126,317			119,265			452,865
Leasing & Services		18,226			15,704			17,476			17,917			69,323

		198,934			284,340			317,280			442,736			1,243,290

Cost of revenue
Manufacturing		79,747			147,552			158,674			275,154			661,127
Wheel Services, Refurbishment & Parts		86,411			101,413			111,202			106,423			405,449
Leasing & Services		9,120			8,725			9,254			10,084			37,183

		175,278			257,690			279,130			391,661			1,103,759

Margin		23,656			26,650			38,150			51,075			139,531
Selling and administrative		17,938			17,693			22,580			22,115			80,326
Gain on disposition of equipment		(2,510	)		(1,961	)		(1,678	)		(2,220	)		(8,369	)

Earnings from operations		8,228			10,918			17,248			31,180			67,574

Other costs
Interest and foreign exchange		10,304			10,536			9,807			6,345			36,992
Loss on extinguishment of debt		–			–			10,007			5,650			15,657

Earnings before income tax and loss from unconsolidated affiliates		(2,076	)		382			(2,566	)		19,185			14,925
Income tax benefit (expense)		611			(100	)		301			(4,376	)		(3,564	)
Loss from unconsolidated affiliates		(587	)		(575	)		(539	)		(1,273	)		(2,974	)

Net earnings (loss)		(2,052	)		(293	)		(2,804	)		13,536			8,387
Net earnings attributable to Noncontrolling interest		(252	)		(257	)		(510	)		(902	)		(1,921	)

Net earnings (loss) attributable to Greenbrier	$	(2,304	)	$	(550	)	$	(3,314	)	$	12,634		$	6,466

Basic earnings (loss) per common share: ⁽¹⁾	$	(0.11	)	$	(0.02	)	$	(0.14	)	$	0.50		$	0.27
Diluted earnings (loss) per common share: ⁽²⁾	$	(0.11	)	$	(0.02	)	$	(0.14	)	$	0.42		$	0.24

(1)

Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Unvested restricted stock awards are excluded from the per share calculation for the first, second and third quarters due to a net loss in each of those periods.

(2)

Quarterly amounts do not total to the year to date amount as each period is calculated discretely. The dilutive effect of warrants is excluded from per share calculations for the first, second and third quarters due to net loss for those periods. The fourth quarter dilutive earnings per common share includes the outstanding warrants using the treasury stock method, which equates to 2.3 million shares, and the dilutive effect of 6.0 million shares underlying the 2018 Convertible Notes using the “if converted” method under which $1.4 million of debt issuance and interest costs, net of tax, were added back to net earnings.