Greenbrier Companies, Inc. (the) · NYSE:GBX
Greenbrier Companies, Inc. (the) — The Greenbrier Companies — Q2 2020 Earnings Presentation
23 slides from Greenbrier Companies, Inc. (the)'s earnings presentation, Apr 7, 2020
Slide 1: 2Q20 Earnings Slides & Supplemental Information
NYSE: GBX 2Q20 Earnings Slides & Supplemental Information Investor.Relations@gbrx.com www.gbrx.com
Slide 2: Safe Harbor Statement
Safe Harbor Statement “SAFE HARBOR” STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This presentation may contain forward-looking statements, including any statements that are not purely statements of historical fact. Greenbrier uses words, and variations of words, such as “aim
Slide 3: Q2 FY 2020 Highlights
Q2 FY 2020 Highlights • Adjusted net earnings attributable to Greenbrier for the quarter of $15.3 million, or $0.46 per diluted share, excluding $0.05 of ARI integration related expenses $623.8mn $3.2bn • Orders for 8,500 diversified railcars, with over 50% revenue generated backlog as of Feb. 29 or
Slide 4: Business Response to Market Conditions
Business Response to Market Conditions Ensure the safety of our Maintain operational Preserve our economic well- employees capabilities being • Policies meeting or exceeding CDC • Operations constitute “Essential • Taking swift action to achieve recommendations at all facilities Infrastructure” and
Slide 5: Strong Balance Sheet and Liquidity Provide Flexibility
Strong Balance Sheet and Liquidity Provide Flexibility (1) (2) Net Funded Debt / Adjusted EBITDA Liquidity Summary ($ in millions) 6.0x $1,200 5.5x 5.0x $981 4.6x $1,000 $950 4.0x Increase due to $800 ARI acquisition $339 $450 financing $641 $620 3.0x 2.7x $573 $600 $506 2.0x 2.1x $441 1.9x $401 $31
Slide 6: Railcar Backlog Provides Earnings Visibility
Railcar Backlog Provides Earnings Visibility $5.0 $140 $4.5 $114 $116 $120 $112 Average Sales Price/Unit ($ in thousands) $106 $108 $108 $4.0 $106 $103 $98 $100 Balcklog Value ($ in billions) $3.5 $100 $87 $3.0 $79 $80 $80 $2.5 $4.7 $60 $2.0 $3.3 $3.2 $3.3 $3.2 $1.5 $3.1 $2.8 $2.7 $40 $1.0 $1.5 $20
Slide 7: Focused on Liquidity and Cash Flow
Focused on Liquidity and Cash Flow Actions to Maximize Cash Flow Planned Reductions in Capex • Reduced 20% of manufacturing workforce, primarily in Mexico, in the last six months $198.2 • All non-essential capital expenditures have been $176.8 eliminated for FY 2020 $ in Millions $140.0 $95.0 • Elim
Slide 8: Strong Financial Performance
Strong Financial Performance Revenue Deliveries(1) $3,500 25 23.4 $3,034 Deliveries (in thousands) $3,000 20 $2,500 $2,000 15 $1,500 10 $1,000 5 $500 $- 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Adj. diluted EPS(2) Net Debt(3) / Adj. EBITDA
Slide 9: Key Operational Metrics
Key Operational Metrics Backlog Deliveries(1) Syndicated Deliveries 7,300 1,800 30,800 30,300 6,500 6,200 1,500 28,500 5,100 1,200 4,500 26,000 26,100 500 200 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 Orders for 8,500 railcars valued at $815 million re
Slide 10: Income Statement Highlights
Income Statement Highlights Revenue ($ millions) Adjusted EBITDA ($ millions)(1) Adjusted Diluted EPS(1) $914.2 $856.2 $109.4 $1.31 $769.4 $658.7 $84.4 $623.8 $74.2 $71.6 $0.89 $38.8 $0.46 $0.30 $0.11 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 Q2 FY 20
Slide 11: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow Operating Cash Flow(3) Net Capex & Invest. in Net Funded Debt(2) (3) Unconsolidated Affiliates(1) (3) $72.9 $39.9 $713.0 $52.5 $629.5 $23.5 $558.0 $14.9 $198.4 $180.2 $(2.7) $(8.1) $(49.5) $(62.9) $(70.3) 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 2Q 19 3Q
Slide 12: Manufacturing Segment Update
Manufacturing Segment Update Revenue and Gross Margin % Recent Developments $2.4 24% • Gross margin reflected improved product mix and customer $2.0 20% Gross margin $ in Billions payments related to contract modifications $1.6 16% • International diversification supports ongoing backlog visibility
Slide 13: Wheels, Repair and Parts
Wheels, Repair and Parts Revenue and Gross Margin %(1) Recent Developments $6.0 12% • Higher wheelset volume due to winter seasonality $5.0 Gross margin $ in Thousands $4.0 • Improved profitability from wheel volumes and repair network 8% $3.0 operational improvements $2.0 • Ongoing strategic evalua
Slide 14: Leasing & Services
Leasing & Services Revenue and Gross Margin % Recent Developments $3.0 70% 60% • Increase in revenue reflects higher volume of externally $2.5 Gross margin 50% $ in Thousands sourced railcars for syndication $2.0 40% • Lower margins on externally sourced railcar syndications; $1.5 30% excluding this
Slide 15: Unique Model Provides Maximum Flexibility
Unique Model Provides Maximum Flexibility Direct Manufacturing Leasing & Services Temporarily hold. Cars temporarily reside on Greenbrier’s 1 Customers order cars to lease for their own use A balance sheet (“Leased railcars for Syndication”), generating income for Leasing & Services Unit Syndicate.
Slide 16: Appendix
Appendix
Slide 17: Quarterly Trends by Segment
QUARTERLY TRENDS BY SEGMENT Manufacturing ($ in millions) 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 Footnotes Revenues $476.0 $681.6 $802.1 $657.4 $489.9 Gross Margin $33.0 $90.8 $116.1 $75.5 $67.6 (1) Excludes Brazil deliveries since they do not impact Manufacturing Revenue and Margins. Gross Margin % 6.9% 13.
Slide 18: Quarterly Adjusted EBITDA Reconciliation
Quarterly Adjusted EBITDA Reconciliation Supplemental Disclosure Reconciliation of Net Earnings to Adjusted EBITDA (In millions, unaudited) Quarter Ending Feb. 28, May 31, Aug. 31, Nov. 30, Fed. 29, 2019 2019 2019 2019 2020 Net earnings $5.8 $25.8 $50.8 $24.0 $20.0 Goodwill impairment - 10.0 - - - A
Slide 19: Annual Adjusted EBITDA Reconciliation
Annual Adjusted EBITDA Reconciliation Supplemental Disclosure Reconciliation of Net Earnings (loss) to Adjusted EBITDA (In millions, unaudited) Year Ending August 31, 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Net earnings (loss) $8.3 $8.4 $61.2 ($5.4) $149.8 $265.3 $284.8 $160.5 $172.1 $105.
Slide 20: Quarterly Adjusted Diluted EPS Reconciliation
Quarterly Adjusted Diluted EPS Reconciliation Supplemental Disclosure Reconciliation of Net Earnings Attributable to Greenbrier to Adjusted Net Earnings (In millions, except per share amounts, unaudited) Quarter Ending Feb. 28, May 31, Aug. 31, Nov. 30, Feb. 29, 2019 2019 2019 2019 2020 Net earnings
Slide 21: Annual Adjusted Diluted EPS Reconciliation
Annual Adjusted Diluted EPS Reconciliation Supplemental Disclosure Reconciliation of Net Earnings (loss) Attributable to Greenbrier to Adjusted Net Earnings (loss) (In millions, except per share amounts, unaudited) Year Ending August 31, 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Net earnings
Slide 22: Adjusted Financial Metric Definition
Adjusted Financial Metric Definition Adjusted EBITDA, Adjusted net earnings attributable to Greenbrier and Adjusted diluted EPS are not financial measures under generally accepted accounting principles (GAAP). These metrics are performance measurement tools used by rail supply companies and Greenbri
Slide 23: NYSE: GBX
NYSE: GBX 2Q20 Earnings Slides & Supplemental Information Investor.Relations@gbrx.com www.gbrx.com
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