Greenbrier Companies, Inc. (the) · NYSE:GBX
Greenbrier Companies, Inc. (the) — Stifel 2024 Transportation & Logistics Conference
46 slides from Greenbrier Companies, Inc. (the)'s conference presentation, Feb 13, 2024
Slide 1: Stifel 2024 Transportation & Logistics Conference
NYSE: GBX Stifel 2024 Transportation & Logistics Conference February 2024 Exhibit 99.1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation and the accompanying oral presentation contain forward-looking statements, including statements that are not purely statements of historical fact. The Greenbrier Companies, Inc. (the “Company,” “we,” “us” or “our”) uses words, and variations of words, suc
Slide 3: An Established Industry Leader
An Established Industry Leader Proven history of delivering strong performance Strategically positioned for growth
Slide 4: The Greenbrier Companies is a Leading Railcar Manufacturer and Lessor
26,900 LTM railcar deliveries $3.8bn Revenue visibility backlog ~14,100 Railcars in lease fleet 15% Recurring revenue(1) growth ~$663mn Strong financially available liquidity The Greenbrier Companies is a Leading Railcar Manufacturer and Lessor Note: Figures as of November 30, 2023 (1) Measured agai
Slide 5: Delivering Value to Our Customers Throughout Railcar Life Cycle
Delivering Value to Our Customers Throughout Railcar Life Cycle Railcar Manufacturing Railcar Leasing Railcar Management Maintenance Services Greenbrier has a fleet of ~14,100 (1) railcars in North America, covering numerous car types which serve multiple market segments. One of North America’s most
Slide 6: Illustrative Example of How We Act as a Complete Solutions Provider
An Illustrative Example of How We Act as a Complete Solutions Provider to Our Customers Depth of customer relationship Adds revenue Wheels & Parts + Manufacturing Management Services Maintenance Services Legacy 2016 to Present New railcar orders have grown across car types over the years, totaling n
Slide 7: Leading Position in Each of its Geographic End Markets
Greenbrier Has a Leading Position in Each of its Geographic End Markets Share of Brazilian Production European Wagon Building Capacity North American Backlog Sources: ARCI, Public filings, ANTT, Internal estimates
Slide 8: Leadership Position Across All Major Product Types in North America
Greenbrier Has a Leadership Position Across All Major Product Types in North America Secondary Position Primary Position GBX RAIL TRN NSC UTLX Description Auto Rack Tank Car Covered Hopper Open-Top Hopper Flatcar Gondola Intermodal Boxcar Refrigerated
Slide 9: Management Services Business Delivers Comprehensive Service to Lessor Customers
Moves railcars from point A to B Manages the per diem rent paid and received for railcars Keep asset within repair & maintenance rules and fit for service Manages railcar administration, contracts, registration and taxes Training and program design targeting full compliance with tank car rules and r
Slide 10: Maintenance Services Network Provides Strategic Services to Railcar Owners
Maintenance Services Network Provides Strategic Services to Railcar Owners 19 Production Facilities 491,000 maintenance hours annually 310,000 wheelsets and 90,000 axles annually 42,000 parts/units annually
Slide 11: Leasing is Integral to the Ongoing Success of Our Business
Greenbrier Manufacturing builds railcars for leased fleet or for syndication Manufacture Railcars reside on the balance sheet, generating income from leases, or are capitalized into leased fleet Hold Railcars aggregated and sold to third party investors, creating sales price premium due to attached
Slide 12: Our Integrated Business Model Leads to Multiple Client Touchpoints
Our Integrated Business Model Leads to Multiple Client Touchpoints and Revenue Opportunities Deliveries Direct Buyers Greenbrier Balance Sheet (owned by Greenbrier) Railcar Orders Direct Buyers Manufacturing Capacity Lessees Supports base load manufacturing capacity and fills gaps in production Capi
Slide 13: Superior Lease Origination Capability is a Key Enabler
Manufacturing Order Breakdown(1) Greenbrier’s Superior Lease Origination Capability is a Key Enabler to Our Business (1) North American activity. 2024 represents 3 months of activity through November 30, 2023
Slide 14: Solid Foundation for Continued Growth of Lease Fleet
Lease Types 14,100 railcars 4.1 Yrs avg. remaining term ~$1.3Bn(1) net book value 133 # of customers 98.2% fleet utilization 7.3 Yrs avg. railcar age (1) Total Net book value is the sum of equipment on operating leases, net and leased railcars from syndication, as presented on the consolidated balan
Slide 15: A High-quality Portfolio of Railcars With Diversification
A High-quality Portfolio of Railcars With Diversification Across Car Types and Commodities Lease Fleet Railcars by Age (1) Lease Fleet Railcar Types (1) (1) As of November 30, 2023 Lease Expirations by Fiscal Year (1)
Slide 16: An Established Industry Leader
An Established Industry Leader Proven history of delivering strong performance Strategically positioned for growth
Slide 17: Proven History of Growing EBITDA Through Cycles
Proven History of Growing EBITDA Through Cycles; Recent Trough is 2.7x Higher than Prior Trough Average Adjusted EBITDA(1) ($ millions) Average: $111 Average: $70 2.7x higher than ’09 – ’10 trough average EBITDA Peak Trough Transition Average: $142 Average: $309 Average: $188 Average: $387 See Appen
Slide 18: Railcar Backlog Continues to Provide Excellent Near-term Revenue Visibility
Greenbrier New Railcar Backlog Railcar Backlog Continues to Provide Excellent Near-term Revenue Visibility 41,300 27,500 28,600 27,400 30,300 24,600 26,600 29,500 30,900 29,700 Units in Backlog Backlog value remains near its highest level in years.
Slide 19: Generating Higher Revenue and Margin Dollars
Generating Higher Revenue and Margin Dollars Consolidated Revenue ($ millions) Consolidated Margin ($ millions)
Slide 20: Leasing & Management Services Financial Performance
Segment Margin Segment Margin % Leasing & Management Services Financial Performance Reflect Consistently Improving Results
Slide 21: Actions to Improve Performance of Maintenance Services
Actions We Have Undertaken to Improve Performance of Maintenance Services Rationalizing network capacity to eliminate underperformers Standardizing operating processes Investing in training and workforce development Investing in locations to minimize downtime and maximize throughput / efficiency Cen
Slide 22: Strategically positioned for growth
An Established Industry Leader Proven history of delivering strong performance Strategically positioned for growth
Slide 23: Strategic Initiatives
Strategic Initiatives Capitalize on healthy market demand 1 4 Growth of recurring revenue 3 Balanced approach to capital allocation 2 Continued manufacturing excellence
Slide 24: Conservative Railcar Demand Forecast
Conservative Railcar Demand Forecast North American Railcar Deliveries Source: FTR, RSI, November 2023
Slide 25: Business Strategy Aligns With Evolving Nature of Railcar Ownership
RAILROADS Overall ownership continues to decline Virtually no tank car ownership Focuses capital investment on infrastructure LESSORS Shift from RR and shipper-owned railcars to lessors Lessors dominate tank car ownership due to complex regulations SHIPPERS Shipper ownership share has declined sligh
Slide 26: Strong Demand From Europe Due to Aging Fleet
European Fleet Age vs NA Strong Demand From Europe Due to Aging Fleet and Requirements to Meet Green Deal Targets 1,600,000 678,000 Source: NA – AAR; Europe - SCI Estimated Annual Freight Wagon Demand (# of wagons) 12,000 10,000 22,000 Estimated 2023 deliveries
Slide 27: Achieved Capacity Rationalization Creating $20 Million in Annual Savings
Achieved Capacity Rationalization Creating $20 Million in Annual Savings on an Ongoing Basis We took steps to optimize our manufacturing footprint. Adjusted production footprint and capacity optimization for more stable demand environment Continue to evaluate additional activity as demand environmen
Slide 28: Cost Optimization Leverage the Vertical Integration Gained Through ARI
Cost Optimization Leverage the Vertical Integration Gained Through the ARI Acquisition Equates to ~170 - 180 bps of margin improvement on a $3 billion revenue base Optimizations create $50 - $55 million of annual savings We are leveraging our vertical integration…. Making vs buying components will s
Slide 29: Disciplined Approach to Capital Allocation
Disciplined Approach to Capital Allocation Preserve strong liquidity position Structure debt facilities to align with business Reduce non-leasing debt Continued dividend growth over time Repurchase shares opportunistically Investing in our long-term lease fleet to increase recurring revenue and smoo
Slide 30: Strong Liquidity Supported Through Syndications and Leased Railcar Sales
Strong Liquidity Supported Through Syndications and Leased Railcar Sales Total Liquidity ($ millions) Fleet Proceeds & Syndication Liquidity ($ millions)
Slide 31: No Significant Near-term Debt Maturities
No Significant Near-term Debt Maturities & ~84%(1) of Debt is Fixed at an Average Rate of 3.8% As of November 30, 2023 Represents remaining principal balance at maturity ($ in millions) Debt Maturities(2)
Slide 32: Recourse Debt is Expected to Decrease Over the Next Several Years
Recourse Debt is Expected to Decrease Over the Next Several Years Recourse vs. Non-Recourse Debt(1) Leasing Fleet Debt & Leverage(2) (1) Excludes capitalized debt discount and issuance costs (2) Fleet assets are leveraged at Fair Market Value, based on independent appraisals, but carried at net book
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Slide 34: Driven by Our Values and Commitments to Stakeholders
Greenbrier’s ESG goals can be found on page four of the 2023 ESG Report We are Driven by Our Values and Commitments We Have Made to Our Stakeholders 2023 ESG Report highlights: Advances ESG strategy which is built on a five-pillar foundation based on 2021’s materiality assessment Focuses on Safety &
Slide 35: 2023 ESG Report Highlights
One railcar manufacturing facility and eight GRS facilities achieved one year or more without a recordable incident See other highlights in our 2023 ESG Report 2023 ESG Report Highlights Introduced Scope 2 greenhouse gas (GHG) emissions reduction pilot project at Greenbrier Tlaxcala: Installation of
Slide 36: We Strive to be the Standard Setter in the Freight Transportation Industry
We Strive to be the Standard Setter in the Freight Transportation Industry
Slide 37: Human Capital Management Integrates with Our Broader Objectives
* Source: Association of American Railroads * Source: Association of American Railroads 1.05 Safety Incident Rate .79 DART Rate 72% 95% Employee Engagement Survey Completion Rate 100% Participation Rate of DEI Training at U.S. Production Sites Employee Resource Groups 8 Greenbrier’s Human Capital Ma
Slide 38: Policy Advocacy to Protect & Promote Model Growth of Freight Rail
Policy Advocacy to Protect & Promote Model Growth of Freight Rail Regulatory Agencies, Trade Associations & Coalitions AAR AAR Interchange Agreement are the “rules of the railroad.” Both regulator and trade association. 25 AAR Committees on rail safety: wheels, braking systems equipment engineering.
Slide 39: Income Statement Highlights
Income Statement Highlights Revenue ($ millions) (1) See Reconciliation in on slide 43 and 44 Adjusted EBITDA ($ millions)(1) Adjusted Diluted EPS(1) Improved profitability reduced the impact of lower deliveries and revenues. Strong Adjusted EBITDA and Adjusted EPS reflect sequential margin enhancem
Slide 40: Key Operational Metrics
Backlog(1) Deliveries(1) Syndicated Deliveries Key Operational Metrics (1) Results include syndicated deliveries and Greenbrier-Maxion, our Brazilian railcar manufacturer, which is accounted for under the equity method Orders for 5,100 railcars valued at nearly $710 million received during Q1 FY24 c
Slide 41: Balance Sheet & Cash Flow Trends
Operating Cash Flow Net Capex & Invest. in Unconsolidated Affiliates(1) Net Funded Debt(2) Balance Sheet & Cash Flow Trends (1) Investment in Unconsolidated Affiliates included to reflect investments in unconsolidated joint ventures (2) Excludes capitalized debt discount and issuance costs ($ in mil
Slide 42: Annual Adjusted EBITDA Reconciliation
Annual Adjusted EBITDA Reconciliation Reconciliation of Net Earnings (loss) to Adjusted EBITDA (In millions) Year Ending 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 LTM 11/30/2023 Net earnings (loss) $29.8 $39.0 $18.5 $14.2 ($57.9) $8.3 $8.4 $61.2 (
Slide 43: Quarterly Adjusted EBITDA Reconciliation
Quarterly Adjusted EBITDA Reconciliation Supplemental Disclosure Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (In millions, unaudited) Quarter Ending Nov. 30, 2022 Feb. 28, 2023 May. 31, 2023 Aug. 31, 2023 Nov. 30, 2023 Net earnings (loss) ($17.3) $36.8 $26.7 $29.4 $33.2 Interest and for
Slide 44: Quarterly Adjusted Diluted EPS Reconciliation
Quarterly Adjusted Diluted EPS Reconciliation Supplemental Disclosure Reconciliation of Net Earnings (Loss) Attributable to Greenbrier to Adjusted Net Earnings Attributable to Greenbrier (In millions, except per share amounts, unaudited) Quarter Ending Nov. 30, 2022 Feb. 28, 2023 May. 31, 2023 Aug.
Slide 45: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Net Earnings Attributable to Greenbrier This presentation includes certain financial measures that were not prepared in accordance with generally accepted accounting principles (GAAP) because we believe they help investors understand our performance. Adjusted EBI
Slide 46: Stifel 2024 Transportation & Logistics Conference
NYSE: GBX Stifel 2024 Transportation & Logistics Conference February 2024
Greenbrier Companies — Stifel 2024 Transportation & Logistics Conference on 6ix