Greenbrier Companies, Inc. (the) · NYSE:GBX
Greenbrier Companies, Inc. (the) — Merger or Acquisition (October 2006)
12 slides from Greenbrier Companies, Inc. (the)'s merger presentation, Oct 16, 2006
Slide 1: Investor Conference Call October 16th 2006
Investor Conference Call October 16th 2006
Slide 2: Forward Looking Statements
Forward Looking Statements "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-
Slide 3: Regulation G
Regulation G 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
Slide 4: Greenbrier Strategic Initiatives
Greenbrier Strategic Initiatives Meridian Rail Holdings Wheel Maintenance $227.5 October 16, 2006 Repair & Maintenance Rail Car America Repair & Maintenance $35.0 September 12, 2006 Greenbrier - GIMSA New Railcar Manufacturing $10.0 October 16, 2006 Joint Venture Purchase Price / Strategic Initiativ
Slide 5: Meridian Rail Services - $227.5 Million Acquisition
Six strategically located wheel shops Component reconditioning business Repair operation in Mexico City Scale efficiencies and synergies from combined network Expected to be accretive to earnings Estimated LTM 8/31/2006 : Revenues: $225 m EBITDA: $38 m Meridian Rail Services-$227.5 million Acquisiti
Slide 6: Rail Car America - $35.0 Million Acquisition
California Nevada Oregon Idaho Washington Montana Wyoming Colorado New Mexico Arizona Utah Kansas Texas Oklahoma Louisiana Mississippi Arkansas Missouri Iowa Minnesota South Dakota North Dakota Wisconsin Michigan Illinois Indiana Ohio Kentucky Virginia West Virginia Tennessee Alabama Georgia Florida
Slide 7: Greenbrier/GIMSA Manufacturing JV - $10 Million Investment
50/50 Joint Venture - Greenbrier operating control Capacity expected to grow to 3,000 railcars annually First production expected in spring 2007 Low cost manufacturing operation Close to US border Close to low cost supply base Capitalize on existing plant and equipment Access to skilled low cost lab
Slide 8: Strategic Initiatives Strengthen Greenbrier
New Railcar Manufacturing Leasing Railcar Management Services Repair & Maintenance Transforms business mix and diversifies earnings to balance new railcar cycle Leverages synergies between business units Improved cost structure in new railcar manufacturing Increases scale in higher margin Repair & M
Slide 9: Impact of Initiatives on Revenue and Margin Mix
1st Qtr 2nd Qtr 3rd Qtr East 79 10.8 10.1 1st Qtr 2nd Qtr 3rd Qtr East 60 10 30 1st Qtr 2nd Qtr 3rd Qtr East 52.6 39.4 8 1st Qtr 2nd Qtr 3rd Qtr East 40 30 30 Impact of Initiatives on Revenue and Margin Mix Greenbrier LTM 5/31/2006 Illustrative impact of Strategic Initiatives Revenue Revenue Gross M
Slide 10: Sources and Uses of Funds - RCA and Meridian
Sources and Uses of Funds - RCA and Meridian ($ millions) Sources 1 Estimated drawn portion of $275.0 million Senior Credit Facilities to be put in place in connection with these strategic initiatives. Estimated Cash on Hand $123.0 Senior Credit Facilities1 144.5 Total Sources $267.5 Purchase of Mer
Slide 11: Credit Profile and Liquidity Remains Strong
Credit Profile and Liquidity Remains Strong Greenbrier LTM 5-31-06 Pro-forma LTM 5-31-06** EBITDA ($millions) $115* $157 Total Debt/ EBITDA 3.44 x 3.45 x EBITDA/ Interest Expense 5.09 x 4.66 x Supported by New $275 million Revolving Credit Facility **Includes estimated full year of Meridian and Rail
Slide 12: Questions?
Questions?
Greenbrier Companies — Merger or Acquisition (October 2006) on 6ix