QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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(State of Incorporation) |
(I.R.S. Employer Identification No.) | |
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(Address of principal executive offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
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☒ |
Accelerated filer |
☐ | |||
Non-accelerated filer |
☐ |
Smaller reporting company |
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Emerging growth company |
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• | the cyclical nature of our business, economic downturns and a rising interest rate environment; |
• | changes in our product mix due to shifts in demand or fluctuations in commodity and energy prices; |
• | a decline in performance or demand of the rail freight industry; |
• | an oversupply or increase in efficiency in the rail freight industry; |
• | difficulty integrating acquired businesses or joint ventures; |
• | our inability to convert backlog to future revenues; |
• | risks related to our operations outside of the U.S., including anti-bribery violations; |
• | governmental policy changes impacting international trade and corporate tax; |
• | the loss of or reduction of business from one or more of our of our limited number of customers; |
• | inability to lease railcars at satisfactory rates, or realize expected residual values on sale of railcars at the end of a lease; |
• | shortages of skilled labor, increased labor costs, or failure to maintain good relations with our workforce; |
• | equipment failures, technological failures, costs and inefficiencies associated with changing of production lines, or transfer of production between facilities; |
• | inability to compete successfully; |
• | suitable joint ventures, acquisition opportunities and new business endeavors may not be identified or concluded; |
• | inability to complete capital expenditure projects efficiently or to cause capital expenditure projects to operate as anticipated; |
• | inability to design or manufacture products or technologies or to achieve timely certification or market acceptance of new products or technologies; |
• | unsuccessful relationships with our joint venture partners; |
• | environmental liabilities, including the Portland Harbor Superfund Site; |
• | the timing of our asset sales and related revenue recognition may result in comparisons between fiscal periods not being accurate indicators of future performance; |
• | attrition within our management team or unsuccessful succession planning for members of our senior management team and other key employees who are at or nearing retirement age; |
• | changes in the credit markets and the financial services industry; |
• | volatility in the global financial markets; |
• | our actual results differing from our announced expectations; |
• | fluctuations in the availability and price of energy, freight transportation, steel and other raw materials; |
• | inability to procure specialty components or services on commercially reasonable terms or on a timely basis from a limited number of suppliers; |
• | existing indebtedness may limit our ability to borrow additional amounts in the future, may expose us to increasing interest rates, and may expose us to a material adverse effect on our business if we are unable to service our debt or obtain additional financing; |
• | train derailments or other accidents or claims; |
• | changes in or failure to comply with legal and regulatory requirements; |
• | an adverse outcome in any pending or future litigation or investigation; |
• | potential misconduct by employees; |
• | labor strikes or work stoppages; |
• | the volatility of our stock price; |
• | dilution to investors resulting from raising additional capital or due to other reasons; |
• | product and service warranty claims; |
• | misuse of our products by third parties; |
• | write-downs of goodwill or intangibles in future periods; |
• | conversion at our option of our outstanding convertible notes resulting in dilution to our then-current stockholders; |
• | as a holding company with no operations, our reliance on our subsidiaries and joint ventures and their ability to make distributions to us; |
• | governing documents, the terms of our convertible notes, and Oregon law could make a change of control or acquisition of our business by a third party difficult; |
• | the discretion of our Board of Directors to pay or not pay dividends on our common stock; |
• | fluctuations in foreign currency exchange rates; |
• | inability to raise additional capital to operate our business and achieve our business objectives; |
• | shareholder activism could cause us to incur significance expense, impact our stock price, and hinder execution of our business strategy; |
• | cybersecurity risks; |
• | updates or changes to our information technology systems resulting in problems; |
• | inability to protect our intellectual property and prevent its improper use by third parties; |
• | claims by third parties that our products or services infringe their intellectual property rights; |
• | liability for physical damage, business interruption or product liability claims that exceed our insurance coverage; |
• | inability to procure adequate insurance on a cost-effective basis; |
• | changes in accounting standards or inaccurate estimates or assumptions in the application of accounting policies; |
• | fires, natural disasters, severe weather conditions or public health crises; |
• | unusual weather conditions which reduce demand for our wheel-related parts and repair services; |
• | business, regulatory, and legal developments regarding climate change which may affect the demand for our products or the ability of our critical suppliers to meet our needs; |
• | repercussions from terrorist activities or armed conflict; |
• | unanticipated changes in our tax provisions or exposure to additional income tax liabilities; |
• | the inability of certain of our customers to utilize tax benefits or tax credits; and |
• | suspension or termination of our share repurchase program. |
Item 1. |
Condensed Financial Statements |
November 30, 2019 |
August 31, 2019 |
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Assets |
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Cash and cash equivalents |
$ | |
$ | |
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Restricted cash |
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Accounts receivable, net |
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Inventories |
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Leased railcars for syndication |
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Equipment on operating leases, net |
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Property, plant and equipment, net |
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Investment in unconsolidated affiliates |
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Intangibles and other assets, net |
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Goodwill |
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$ | |
$ | |
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Liabilities and Equity |
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Revolving notes |
$ | |
$ | |
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Accounts payable and accrued liabilities |
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Deferred income taxes |
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Deferred revenue |
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Notes payable, net |
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Commitments and contingencies (Note 15) |
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Contingently redeemable noncontrolling interest |
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Equity: |
||||||||
Greenbrier |
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Preferred stock |
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— |
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Common stock |
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— |
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Additional paid-in capital |
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Retained earnings |
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Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
Total equity – Greenbrier |
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Noncontrolling interest |
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Total equity |
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$ | |
$ | |
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Three Months Ended November 30, |
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2019 |
2018 |
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Revenue |
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Manufacturing |
$ | |
$ | |
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Wheels, Repair & Parts |
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Leasing & Services |
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Cost of revenue |
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Manufacturing |
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Wheels, Repair & Parts |
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Leasing & Services |
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Margin |
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Selling and administrative expense |
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Net gain on disposition of equipment |
( |
) | ( |
) | ||||
Earnings from operations |
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Other costs |
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Interest and foreign exchange |
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Earnings before income taxes and earnings from unconsolidated affiliates |
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Income tax expense |
( |
) | ( |
) | ||||
Earnings before earnings from unconsolidated affiliates |
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Earnings from unconsolidated affiliates |
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Net earnings |
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Net earnings attributable to noncontrolling interest |
( |
) | ( |
) | ||||
Net earnings attributable to Greenbrier |
$ | |
$ | |
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Basic earnings per common share |
$ | |
$ | |
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Diluted earnings per common share |
$ | |
$ | |
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Weighted average common shares: |
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Basic |
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Diluted |
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Dividends declared per common share |
$ | |
$ | |
Three Months Ended November 30, |
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2019 |
2018 |
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Net earnings |
$ | |
$ | |
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Other comprehensive income |
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Translation adjustment |
( |
) | ( |
) | ||||
Reclassification of derivative financial instruments recognized in net earnings 1 |
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Unrealized gain (loss) on derivative financial instruments 2 |
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( |
) | |||||
Other (net of tax effect) |
( |
) | ( |
) | ||||
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( |
) | ||||||
Comprehensive income |
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Comprehensive income attributable to noncontrolling interest |
( |
) | ( |
) | ||||
Comprehensive income attributable to Greenbrier |
$ | |
$ | |
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1 |
Net of tax effect of $ |
2 |
Net of tax effect of $ ( $) for the three months ended November 30, 2019 and 2018. |
Attributable to Greenbrier |
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Common Stock Shares |
Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Loss |
Total Equity - Greenbrier |
Noncontrolling Interest |
Total Equity |
Contingently Redeemable Noncontrolling Interest |
||||||||||||||||||||||||
Balance August 31, 2019 |
$ | $ | $ | ( |
) | $ | $ | $ | $ | |||||||||||||||||||||||
Cumulative effect adjustment due to adoption of ASU 2016-02 (See Note 1) |
— |
— |
— |
— |
— |
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Net earnings |
— |
— |
— |
|||||||||||||||||||||||||||||
Other comprehensive income (loss), net |
— |
— |
— |
( |
) | — |
||||||||||||||||||||||||||
Noncontrolling interest adjustments |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||
Joint venture partner distribution declared |
— |
— |
— |
— |
— |
( |
) | ( |
) | — |
||||||||||||||||||||||
Consolidation of joint venture |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||
Restricted stock awards (net of cancellations) |
— |
— |
— |
— |
||||||||||||||||||||||||||||
Unamortized restricted stock |
— |
( |
) | — |
— |
( |
) | — |
( |
) | — |
|||||||||||||||||||||
Restricted stock amortization |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||
Cash dividends ($ |
— |
— |
( |
) | — |
( |
) | — |
( |
) | — |
|||||||||||||||||||||
Balance November 30, 2019 |
$ | $ | $ | ( |
) | $ | $ | $ | $ | |||||||||||||||||||||||
Attributable to Greenbrier |
||||||||||||||||||||||||||||||||
Common Stock Shares |
Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Loss |
Total Equity - Greenbrier |
Noncontrolling Interest |
Total Equity |
Contingently Redeemable Noncontrolling Interest |
|||||||||||||||||||||||||
Balance August 31, 2018 |
$ | $ | $ | ( |
) | $ | $ | $ | $ | |||||||||||||||||||||||
Cumulative effect adjustment due to adoption ASU 2014-09 |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||
Net earnings |
— |
— |
— |
( |
) | |||||||||||||||||||||||||||
Other comprehensive loss , net |
— |
— |
— |
( |
) | ( |
) | ( |
) | ( |
) | — |
||||||||||||||||||||
Noncontrolling interest adjustments |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||
Joint venture partner distribution declared |
— |
— |
— |
— |
— |
( |
) | ( |
) | — |
||||||||||||||||||||||
Restricted stock awards (net of cancellations) |
— |
— |
— |
— |
||||||||||||||||||||||||||||
Unamortized restricted stock |
— |
( |
) | — |
— |
( |
) | — |
( |
) | — |
|||||||||||||||||||||
Restricted stock amortization |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||
Cash dividends ($ |
— |
— |
( |
) | — |
( |
) | — |
( |
) | — |
|||||||||||||||||||||
Balance November 30, 2018 |
$ | $ | $ | ( |
) | $ | $ | $ | $ | |||||||||||||||||||||||
Three Months Ended November 30, |
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2019 |
2018 |
|||||||
Cash flows from operating activities |
||||||||
Net earnings |
$ | $ | ||||||
Adjustments to reconcile net earnings to net cash used in operating activities: |
||||||||
Deferred income taxes |
( |
) | ( |
) | ||||
Depreciation and amortization |
||||||||
Net gain on disposition of equipment |
( |
) | ( |
) | ||||
Accretion of debt discount |
||||||||
Stock based compensation expense |
||||||||
Noncontrolling interest adjustments |
||||||||
Other |
( |
) | ||||||
Decrease (increase) in assets: |
||||||||
Accounts receivable, net |
||||||||
Inventories |
( |
) | ( |
) | ||||
Leased railcars for syndication |
( |
) | ( |
) | ||||
Other |
( |
) | ( |
) | ||||
Increase (decrease) in liabilities: |
||||||||
Accounts payable and accrued liabilities |
( |
) | ( |
) | ||||
Deferred revenue |
( |
) | ||||||
Net cash used in operating activities |
( |
) | ( |
) | ||||
Cash flows from investing activities |
||||||||
Proceeds from sales of assets |
||||||||
Capital expenditures |
( |
) | ( |
) | ||||
Investment in and advances to unconsolidated affiliates |
( |
) | ( |
) | ||||
Cash distribution from unconsolidated affiliates and other |
||||||||
Net cash provided by (used in) investing activities |
( |
) | ||||||
Cash flows from financing activities |
||||||||
Net change in revolving notes with maturities of 90 days or less |
( |
) | ||||||
Proceeds from issuance of notes payable |
— |
|||||||
Repayments of notes payable |
( |
) | ( |
) | ||||
Debt issuance costs |
( |
) | ( |
) | ||||
Dividends |
( |
) | ( |
) | ||||
Cash distribution to joint venture partner |
( |
) | ( |
) | ||||
Tax payments for net share settlement of restricted stock |
( |
) | ( |
) | ||||
Net cash provided by ( used in) financing activities |
( |
) | ||||||
Effect of exchange rate changes |
( |
) | ||||||
Decrease in cash and cash equivalents and restricted cash |
( |
) | ( |
) | ||||
Cash and cash equivalents and restricted cash |
||||||||
Beginning of period |
||||||||
End of period |
$ | $ | ||||||
Balance Sheet Reconciliation: |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Restricted cash |
||||||||
Total cash and cash equivalents and restricted cash as presented above |
$ | $ | ||||||
Interest |
$ | $ | ||||||
Income taxes, net |
$ | $ | ||||||
Non-cash activity |
||||||||
Transfer from Leased railcars for syndication and Inventories to Equipment on operating leases, net |
$ | $ | ||||||
Capital expenditures accrued in Accounts payable and accrued liabilities |
$ | $ | ||||||
Change in Accounts payable and accrued liabilities associated with dividends declared |
$ | $ | ||||||
Conversion of unconsolidated affiliate note receivable to Investment in unconsolidated affiliates |
$ |
$ |
— |
|||||
Change in Accounts payable and accrued liabilities associated with cash distributions to joint venture partner |
$ | $ | — |
(in thousands) |
Balance sheet |
November 30 , 2019 |
August 31 , 2019 |
$ change |
||||||||||||
Contract assets |
Inventories |
$ | $ | $ | ( |
) | ||||||||||
Contract liabilities 1 |
Deferred revenue |
$ | $ | $ | ( |
) |
1 |
Contract liabilities balance includes deferred revenue within the scope of Topic 606 . |
(in millions) |
November 30, 2019 |
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Revenue type : |
||||
Manufacturing – Railcar sales |
$ | |||
Manufacturing – Marine |
$ |
|||
Services |
$ | |||
Other |
$ | |||
Manufacturing – Railcars intended for syndication 1 |
$ |
1 |
Not a performance obligation as defined in Topic 606: Contracts with Customers |
(in thousands) |
||||
Accounts receivable, net |
|
|||
Inventories |
|
|||
Property, plant and equipment, net |
|
|||
Investments in unconsolidated affiliates |
|
|||
Intangibles and other assets, net |
|
|||
Goodwill |
|
|||
Total assets acquired |
|
|||
Total liabilities assumed |
|
|||
Net assets acquired |
$ | |
||
(in thousands) |
Fair value |
Weighted average estimated (in years) |
||||||
Trademarks and patents |
$ |
|
|
|||||
Customer and supplier relationships |
|
|
||||||
Identified intangible assets subject to amortization |
|
|||||||
Other identified intangible assets not subject to amortization |
|
|||||||
Total identified intangible assets |
$ |
|
||||||
(In thousands) |
November 30, 2019 |
August 31, 2019 |
||||||
Manufacturing supplies and raw materials |
$ | |
$ | |
||||
Work-in-process |
|
|
||||||
Finished goods |
|
|
||||||
Excess and obsolete adjustment |
( |
) | ( |
) | ||||
$ | |
$ | |
|||||
(In thousands) |
November 30, 2019 |
August 31, 2019 |
||||||
Intangible assets subject to amortization: |
||||||||
Customer relationships |
$ | |
$ | |
||||
Accumulated amortization |
( |
) | ( |
) | ||||
Other intangibles |
|
|
||||||
Accumulated amortization |
( |
) | ( |
) | ||||
|
|
|||||||
Intangible assets not subject to amortization |
|
|
||||||
Prepaid and other assets |
|
|
||||||
Operating lease ROU assets |
|
|
|
|
|
— |
| |
Nonqualified savings plan investments |
|
|
||||||
Revolving notes issuance costs, net |
|
|
||||||
Assets held for sale |
|
|
||||||
Total Intangible and other assets, net |
$ | |
$ | |
||||
(In thousands) |
November 30, 2019 |
August 31, 2019 |
||||||
Trade payables |
$ | |
$ | |
||||
Other accrued liabilities |
|
|
||||||
Operating lease liabilities |
|
|
|
|
|
|
— |
|
Accrued payroll and related liabilities |
|
|
||||||
Accrued warranty |
|
|
||||||
Income taxes payable |
|
|
||||||
$ | |
$ | |
|||||
Three Months Ended November 30, |
||||||||
(In thousands) |
2019 |
2018 |
||||||
Balance at beginning of period |
$ | |
$ | |
||||
Charged to cost of revenue, net |
|
|
||||||
Payments |
( |
) | ( |
) | ||||
Currency translation effect |
|
( |
) | |||||
Balance at end of period |
$ | |
$ | |
||||
(In thousands) |
Unrealized Gain ( L oss) onDerivative Financial Instruments |
Foreign Currency Translation Adjustment |
Other |
Accumulated Other Comprehensive Loss |
||||||||||||
Balance, August 31, 2019 |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Other comprehensive gain (loss) before reclassifications |
|
( |
) | ( |
) | |
||||||||||
Amounts reclassified from Accumulated other comprehensive loss |
|
— |
— |
|
||||||||||||
Balance, November 30, 2019 |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Three Months November 30, |
||||||||||
(In thousands) |
2019 |
2018 |
Financial Statement Caption | |||||||
(Gain) loss on derivative financial instruments: |
||||||||||
Foreign exchange contracts |
$ | |
$ |
|
Revenue and Cost | |||||
Interest rate swap contracts |
|
|
Interest and foreign exchange | |||||||
|
|
Total before tax | ||||||||
( |
) | ( |
) | Income tax expense | ||||||
$ |
|
$ |
|
Net of tax | ||||||
Three Months November 30, |
||||||||
(In thousands) |
2019 |
2018 |
||||||
Weighted average basic common shares outstanding (1) |
||||||||
Dilut i ve effect of 2.875% Convertible notes (2) |
||||||||
Dilutive effect of 2.25% Convertible notes (3) |
n/a |
|||||||
Dilutive effect of restricted stock units (4) |
||||||||
Weighted average diluted common shares outstanding |
||||||||
(1) |
Restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. |
(2) |
The dilutive effect of the |
(3) |
The 2.25 % Convertible notes were issued in July 2019. The dilutive effect of the |
(4) |
Restricted stock units that are not considered participating securities and restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position. |
Three Months Ended November 30, |
||||||||
2019 |
2018 |
|||||||
Net earnings attributable to Greenbrier |
$ | $ | ||||||
Weighted average diluted common shares outstanding |
||||||||
Diluted earnings per share |
$ |
$ |
Asset Derivatives |
Liability Derivatives |
|||||||||||||||||||
November 30, 2019 |
August 31, 2019 |
November 30, 2019 |
August 31, 2019 |
|||||||||||||||||
(In thousands) |
Balance sheet location |
Fair Value |
Fair Value |
Balance sheet location |
Fair Value |
Fair Value |
||||||||||||||
Derivatives designated as hedging instruments |
||||||||||||||||||||
Foreign forward exchange contracts |
Accounts receivable, net |
$ | $ | Accounts payable accrued liabilities |
$ | $ | ||||||||||||||
Interest rate swap contracts |
Accounts receivable, net |
Accounts payable and accrued liabilities |
||||||||||||||||||
$ | $ | $ | $ | |||||||||||||||||
Derivatives not designated as hedging instruments |
||||||||||||||||||||
Foreign forward exchange contracts |
Accounts receivable, net |
$ | $ | Accounts payable and accrued liabilities |
$ | $ |
Derivatives in cash flow hedging relationships |
Location of gain (loss) recognized in income on derivatives |
Gain (loss) recognized in income on derivatives three months ended November 30, |
||||||||
2019 |
2018 |
|||||||||
Foreign forward exchange contract |
Interest and foreign exchange |
$ | |
$ | |
Derivatives in cash flow hedging relationships |
Gain (loss) recognized in OCI on derivatives three months ended November 30, |
Location of gain (loss) reclassified from accumulated OCI into income |
Gain (loss) reclassified from accumulated OCI into income three months ended November 30, |
Location of gain (loss) on derivative (amount excluded from effectiveness testing) |
Gain (loss) recognized on derivative (amount excluded from effectiveness testing) three months ended November 30, |
|||||||||||||||||||||||
2019 |
2018 |
2019 |
2018 |
2019 |
2018 |
|||||||||||||||||||||||
Foreign forward exchange contracts |
$ | |
$ | |
Revenue |
$ | ( |
) | $ | ( |
Revenue |
$ | |
$ | |
|||||||||||||
Foreign forward exchange contracts |
( |
) | ( |
) | Cost of revenue |
( |
) | ( |
) | Cost of revenue |
|
|
||||||||||||||||
Interest rate swap contracts |
|
( |
) | Interest and foreign exchange |
( |
) | ( |
) | Interest and foreign exchange |
( |
) | ( |
) | |||||||||||||||
$ | |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | |
$ | |
||||||||||||||
For the Three Months Ended November 30, |
||||||||||||||||
2019 |
2018 |
|||||||||||||||
Total |
Amount of (loss) on cash flow hedge activity |
Total |
Amount of (loss) on cash flow hedge activity |
|||||||||||||
Revenue |
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) | ||||||
Cost of revenue |
|
( |
) |
|
( |
) | ||||||||||
Interest and foreign exchange |
|
( |
) |
|
( |
) |
Revenue |
Earnings (loss) from operations |
|||||||||||||||||||||||
(In thousands) |
External |
Intersegment |
Total |
External |
Intersegment |
Total |
||||||||||||||||||
Manufacturing |
$ | |
$ | |
$ | |
$ | |
$ | ( |
) | $ | |
|||||||||||
Wheels, Repair & Parts |
|
|
|
|
( |
) | |
|||||||||||||||||
Leasing & Services |
|
|
|
|
|
|
||||||||||||||||||
Eliminations |
— |
( |
) |
( |
) |
— |
( |
) |
( |
) | ||||||||||||||
Corporate |
|
— |
— |
( |
) | — |
( |
) | ||||||||||||||||
$ | |
$ | — |
$ | |
$ | |
$ | — |
$ | |
|||||||||||||
Revenue |
Earnings (loss) from operations |
|||||||||||||||||||||||
(In thousands) |
External |
Intersegment |
Total |
External |
Intersegment |
Total |
||||||||||||||||||
Manufacturing |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||
Wheels, Repair & Parts |
|
|
|
|
|
|
||||||||||||||||||
Leasing & Services |
|
|
|
|
|
|
||||||||||||||||||
Eliminations |
— |
( |
) | ( |
) | — |
( |
) | ( |
) | ||||||||||||||
Corporate |
|
— |
— |
( |
) | — |
( |
) | ||||||||||||||||
$ | |
$ | — |
$ | |
$ | |
$ | — |
$ | |
|||||||||||||
Total assets |
||||||||
(In thousands) |
November 30, |
August 31, |
||||||
Manufacturing |
$ | |
$ | |
||||
Wheels, Repair & Parts |
|
|
||||||
Leasing & Services |
|
|
||||||
Unallocated |
|
|
||||||
$ | |
$ | |
|||||
Three Months Ended November 30, |
||||||||
(In thousands) |
2019 |
2018 |
||||||
Earnings from operations |
$ | |
$ | |
||||
Interest and foreign exchange |
|
|
||||||
Earnings before income tax and earnings from unconsolidated affiliates |
$ | |
$ | |
||||
(in thousands) |
||||
Remaining nine months of 2020 |
|
|||
2021 |
|
|||
2022 |
|
|||
2023 |
|
|||
2024 |
|
|||
Thereafter |
|
|||
$ |
|
|||
(in thousands) |
Three months ended November 30, 2019 |
|||
Operating lease expense |
$ |
|
||
Short-term lease expense |
|
|||
Total |
$ |
|
||
(in thousands) |
||||
Remaining nine months of 2020 |
$ |
|
||
2021 |
|
|||
2022 |
|
|||
2023 |
|
|||
2024 |
|
|||
Thereafter |
|
|||
Total lease payments |
$ |
|
||
Less: Imputed interest |
( |
) | ||
Total lease obligations |
$ |
|
||
Weighted average remaining lease term |
||||
Operating leases |
||||
Weighted average discount rate |
||||
Operating leases |
% |
(in thousands) |
Three months ended November 30, 2019 |
|||
Cash paid for amounts included in the measurement of lease liabilities |
||||
Operating cash flows from operating leases |
$ |
(In thousands) |
Total |
Level 1 |
Level 2 (1) |
Level 3 |
||||||||||||
Assets: |
||||||||||||||||
Derivative financial instruments |
$ | |
$ | — |
$ | |
$ | — |
||||||||
Nonqualified savings plan investments |
|
|
— |
— |
||||||||||||
Cash equivalents |
|
|
— |
— |
||||||||||||
$ | |
$ | |
$ | |
$ | — |
|||||||||
Liabilities: |
||||||||||||||||
Derivative financial instruments |
$ | |
$ | — |
$ | |
$ | |
(1) |
Level 2 assets and liabilities include derivative financial instruments that are valued based on observable inputs. See Note 12 – Derivative Instruments for further discussion. |
(In thousands) |
Total |
Level 1 |
Level 2 |
Level 3 |
||||||||||||
Assets: |
||||||||||||||||
Derivative financial instruments |
$ | |
$ | — |
$ | |
$ | — |
||||||||
Nonqualified savings plan investments |
|
|
— |
— |
||||||||||||
Cash equivalents |
|
|
— |
— |
||||||||||||
$ | |
$ | |
$ | |
$ | — |
|||||||||
Liabilities: |
||||||||||||||||
Derivative financial instruments |
$ | |
$ | — |
$ | |
$ | — |
Three Months Ended November 30, |
||||||||
(In thousands) |
2019 |
2018 |
||||||
Revenue: |
||||||||
Manufacturing |
$ | 657,367 |
$ | 471,789 |
||||
Wheels, Repair & Parts |
86,608 |
108,543 |
||||||
Leasing & Services |
25,384 |
24,191 |
||||||
769,359 |
604,523 |
|||||||
Cost of revenue: |
||||||||
Manufacturing |
581,912 |
417,805 |
||||||
Wheels, Repair & Parts |
81,892 |
100,978 |
||||||
Leasing & Services |
13,366 |
13,207 |
||||||
677,170 |
531,990 |
|||||||
Margin: |
||||||||
Manufacturing |
75,455 |
53,984 |
||||||
Wheels, Repair & Parts |
4,716 |
7,565 |
||||||
Leasing & Services |
12,018 |
10,984 |
||||||
92,189 |
72,533 |
|||||||
Selling and administrative |
54,364 |
50,432 |
||||||
Net gain on disposition of equipment |
(3,959 |
) | (14,353 |
) | ||||
Earnings from operations |
41,784 |
36,454 |
||||||
Interest and foreign exchange |
12,852 |
4,404 |
||||||
Earnings before income taxes and earnings from unconsolidated affiliates |
28,932 |
32,050 |
||||||
Income tax expense |
(5,994 |
) | (9,135 |
) | ||||
Earnings before earnings from unconsolidated affiliates |
22,938 |
22,915 |
||||||
Earnings from unconsolidated affiliates |
1,073 |
467 |
||||||
Net earnings |
24,011 |
23,382 |
||||||
Net earnings attributable to noncontrolling interest |
(16,342 |
) | (5,426 |
) | ||||
Net earnings attributable to Greenbrier |
$ | 7,669 |
$ | 17,956 |
||||
Diluted earnings per common share |
$ | 0.23 |
$ | 0.54 |
Three Months Ended November 30, |
||||||||
(In thousands) |
2019 |
2018 |
||||||
Operating profit (loss): |
||||||||
Manufacturing |
$ | 53,143 |
$ | 36,855 |
||||
Wheels, Repair & Parts |
1,114 |
3,247 |
||||||
Leasing & Services |
9,777 |
17,513 |
||||||
Corporate |
(22,250 |
) | (21,161 |
) | ||||
$41,784 |
$36,454 |
|||||||
Three Months Ended November 30, |
Increase |
% |
||||||||||||||
(In thousands) |
2019 |
2018 |
(Decrease) |
Change |
||||||||||||
Revenue |
$ | 769,359 |
$ | 604,523 |
$ | 164,836 |
27.3 |
% | ||||||||
Cost of revenue |
$ | 677,170 |
$ | 531,990 |
$ | 145,180 |
27.3 |
% | ||||||||
Margin (%) |
12.0 |
% | 12.0 |
% | — |
* |
||||||||||
Net earnings attributable to Greenbrier |
$ | 7,669 |
$ | 17,956 |
$ | (10,287 |
) | (57.3 |
%) |
* | Not meaningful |
Three Months Ended November 30, |
Increase |
% |
||||||||||||||
(In thousands) |
2019 |
2018 |
(Decrease) |
Change |
||||||||||||
Revenue |
$ | 657,367 |
$ | 471,789 |
$ | 185,578 |
39.3 |
% | ||||||||
Cost of revenue |
$ | 581,912 |
$ | 417,805 |
$ | 164,107 |
39.3 |
% | ||||||||
Margin (%) |
11.5 |
% | 11.4 |
% | 0.1 |
% | * |
|||||||||
Operating profit ($) |
$ | 53,143 |
$ | 36,855 |
$ | 16,288 |
44.2 |
% | ||||||||
Operating profit (%) |
8.1 |
% | 7.8 |
% | 0.3 |
% | * |
|||||||||
Deliveries |
5,900 |
4,200 |
1,700 |
40.5 |
% |
* | Not meaningful |
Three Months Ended November 30, |
Increase (Decrease) |
% Change |
||||||||||||||
(In thousands) |
2019 |
2018 |
||||||||||||||
Revenue |
$ | 86,608 |
$ | 108,543 |
$ | (21,935 |
) | (20.2 |
%) | |||||||
Cost of revenue |
$ | 81,892 |
$ | 100,978 |
$ | (19,086 |
) | (18.9 |
%) | |||||||
Margin (%) |
5.4 |
% | 7.0 |
% | (1.6 |
%) | * |
|||||||||
Operating profit ($) |
$ | 1,114 |
$ | 3,247 |
$ | (2,133 |
) | (65.7 |
%) | |||||||
Operating profit (%) |
1.3 |
% | 3.0 |
% | (1.7 |
%) | * |
* | Not meaningful |
Three Months Ended November 30, |
Increase (Decrease) |
% Change |
||||||||||||||
(In thousands) |
2019 |
2018 |
||||||||||||||
Revenue |
$ | 25,384 |
$ | 24,191 |
$ | 1,193 |
4.9 |
% | ||||||||
Cost of revenue |
$ | 13,366 |
$ | 13,207 |
$ | 159 |
1.2 |
% | ||||||||
Margin (%) |
47.3 |
% | 45.4 |
% | 1.9 |
% | * |
|||||||||
Operating profit ($) |
$ | 9,777 |
$ | 17,513 |
$ | (7,736 |
) | (44.2 |
%) | |||||||
Operating profit (%) |
38.5 |
% | 72.4 |
% | (33.9 |
%) | * |
* | Not meaningful |
Three Months Ended November 30, |
Increase (Decrease) |
% Change |
||||||||||||||
(In thousands) |
2019 |
2018 |
||||||||||||||
Selling and administrative expense |
$ | 54,364 |
$ | 50,432 |
$ | 3,932 |
7.8 |
% |
Three Months Ended November 30, |
Increase (Decrease) |
|||||||||||
(In thousands) |
2019 |
2018 |
||||||||||
Interest and foreign exchange: |
||||||||||||
Interest and other expense |
$ | 10,239 |
$ | 7,165 |
$ | 3,074 |
||||||
Foreign exchange (gain) loss |
2,613 |
(2,761 |
) | 5,374 |
||||||||
$ | 12,852 |
$ | 4,404 |
$ | 8,448 |
|||||||
Three Months Ended November 30, |
||||||||
(In thousands) |
2019 |
2018 |
||||||
Net cash used in operating activities |
$ | (70,319 |
) | $ | (97,119 |
) | ||
Net cash provided by (used in) investing activities |
7,199 |
(3,789 |
) | |||||
Net cash provided by (used in) financing activities |
(14,098 |
) | 35,542 |
|||||
Effect of exchange rate changes |
981 |
(2,439 |
) | |||||
Decrease in cash and cash equivalents and restricted cash |
$ | (76,237 |
) | $ | (67,805 |
) | ||
Period |
Total Number of Shares Purchased |
Average Price Paid Per Share (Including Commissions) |
Total Number of Shares Purchased as Part of Publically Announced Plans or Programs |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs |
||||||||||||
September 1, 2019 – September 30, 2019 |
— |
— |
— |
$ | 100,000,000 |
|||||||||||
October 1, 2019 – October 31, 2019 |
— |
— |
— |
$ | 100,000,000 |
|||||||||||
November 1, 2019 – November 30, 2019 |
— |
— |
— |
$ | 100,000,000 |
|||||||||||
— |
— |
|||||||||||||||
(a) | List of Exhibits: |
31.1 |
||||
31.2 |
||||
32.1 |
||||
32.2 |
||||
101.INS |
Inline XBRL Instance Document. | |||
101.SCH |
Inline XBRL Taxonomy Extension Schema Document. | |||
101.CAL |
Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||
101.DEF |
Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||
101.LAB |
Inline XBRL Taxonomy Extension Label Linkbase Document. | |||
101.PRE |
Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||
104 |
Cover Page Interactive Data File (Formatted as inline XBRL and contained in Exhibit 101). |
THE GREENBRIER COMPANIES, INC. | ||||||||
Date: |
January 8, 2020 |
By: |
/s/ Adrian J. Downes | |||||
Adrian J. Downes | ||||||||
Senior Vice President, | ||||||||
Chief Financial Officer and Chief Accounting Officer | ||||||||
(Principal Financial Officer and Principal Accounting Officer) |