Greenbrier Companies, Inc. (the) · NYSE:GBX
Greenbrier Companies, Inc. (the) — The Greenbrier Companies — Q3 2020 Earnings Presentation
23 slides from Greenbrier Companies, Inc. (the)'s earnings presentation, Jul 10, 2020
Slide 1: 3Q20 Earnings Slides & Supplemental Information
NYSE: GBX 3Q20 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 “ach
Slide 3: Q3 FY 2020 Highlights
Q3 FY 2020 Highlights • Adjusted net earnings attributable to Greenbrier for the quarter of $35.1 million, or $1.05 per diluted share, excluding $0.08 of ARI integration related expenses and $0.14 of severance expenses. $762.6mn $2.7bn revenue generated backlog as of May 31 • Achieved $1 billion liq
Slide 4: Business Response to Market Conditions
Business Response to Market Conditions Ensure the safety of our Maintain operational Preserve our economic well- employees capabilities being • Policies meeting or exceeding CDC • Operations constitute “Essential • Taking swift action to achieve recommendations at all facilities Infrastructure” and
Slide 5: Strong Balance Sheet and Liquidity Provide Flexibility
Strong Balance Sheet and Liquidity Provide Flexibility Net Funded Debt(1) / Adjusted EBITDA(2) Liquidity Summary ($ in millions) 6.0x $1,200 5.5x 5.0x $981 4.6x $1,000 $950 $872 4.0x $800 $137 $339 $450 Increase due to ARI acquisition $641 3.0x 2.7x $573 financing $600 $506 2.0x 1.9x $441 $312 2.0x
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 $100 Balcklog Value ($ in billions) $3.5 $100 $3.0 $79 $80 $80 $2.5 $4.7 $60 $2.0 $3.3 $3.2 $3.3 $3.2 $1.5 $3.1 $40 $2.8 $2.7 $2.7 $1.0 $1.
Slide 7: Focused on Liquidity and Cash Flow
Focused on Liquidity and Cash Flow Actions to Maximize Cash Flow Planned Reductions in Capex • Reduced staff and production employees by about 40%, or about 5,300 employees, through first nine months of fiscal year $198.2 $176.8 • $50 million reduction in capital expenditures from $140.0 elimination
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(1) Deliveries(1) Syndicated Deliveries 7,300 1,800 30,800 30,300 6,500 1,600 6,200 5,900 1,500 28,500 4,500 26,700 26,100 500 200 3Q 19 4Q 19 1Q 20 2Q 20 3Q20 3Q 19 4Q 19 1Q 20 2Q 20 3Q20 3Q 19 4Q 19 1Q 20 2Q 20 3Q20 Orders for 800 railcars valued over $65.0 million r
Slide 10: Income Statement Highlights
Income Statement Highlights Revenue ($ millions) Adjusted EBITDA ($ millions)(1) Adjusted Diluted EPS(1) $914.2 $856.2 $109.4 $1.31 $769.4 $762.6 $99.9 $1.05 $84.4 $623.8 $74.2 $71.6 $0.89 $0.46 $0.30 3Q 19 4Q 19 1Q 20 2Q 20 3Q20 3Q 19 4Q 19 1Q 20 2Q 20 3Q20 3Q 19 4Q 19 1Q 20 2Q 20 3Q20 Q3 FY 20 gro
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) $222.2 $23.5 $713.0 $14.9 $629.5 $8.1 $558.0 $520.1 $72.9 $52.5 $(2.7) $180.2 $(22.2) $(70.3) $(62.9) 3Q 19 4Q 19 1Q 20 2Q 20 3Q20 3Q 19 4Q 19 1Q 20 2Q 20 3Q20 3Q 19 4Q 19
Slide 12: Manufacturing Segment Update
Manufacturing Segment Update Revenue and Gross Margin % Recent Developments $2.4 24% • Higher deliveries reflecting strong syndication activity $2.0 20% Gross margin $ in Billions • Increased syndication activity generates higher gross margin $1.6 16% partially offset by $4.5 million of severance ex
Slide 13: Wheels, Repair and Parts
Wheels, Repair and Parts Revenue and Gross Margin %(1) Recent Developments $600 • Revenue decrease reflects reduced volume of wheelsets and $500 12% Gross margin $ in Thousands parts $400 8% • Gross margin increase reflects improved railcar repair network $300 operating efficiencies $200 4% • Capex
Slide 14: Leasing & Services
Leasing & Services Revenue and Gross Margin % Recent Developments $300 70% • Revenue in prior quarter reflected higher volume of externally $250 60% Gross margin 50% $ in Thousands sourced railcar syndications; Activity is opportunistic and non- $200 linear 40% $150 30% • Gross margin in previous qu
Slide 15: Unique Model Provides Maximum Flexibility
Unique Model Provides Maximum Flexibility Direct Manufacturing Leasing & Services Temporarily hold. Cars temporarily reside on Greenbrier’s 1 Customers order cars to lease for their own use A balance sheet (“Leased railcars for Syndication”), generating income for Leasing & Services Unit Syndicate.
Slide 16: Appendix
as xe} c o 2. Q <x
Slide 17: Quarterly Trends by Segment
QUARTERLY TRENDS BY SEGMENT Manufacturing ($ in millions) 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 Footnotes Revenues $681.6 $802.1 $657.4 $489.9 $653.0 Gross Margin $90.8 $116.1 $75.5 $67.6 $90.2 (1) Excludes Brazil deliveries since they do not impact Manufacturing Revenue and Margins. Gross Margin % 13.3% 14
Slide 18: Quarterly Adjusted EBITDA Reconciliation
Quarterly Adjusted EBITDA Reconciliation Supplemental Disclosure Reconciliation of Net Earnings to Adjusted EBITDA (In millions, unaudited) Quarter Ending May 31, Aug. 31, Nov. 30, Fed. 29, May 31, 2019 2019 2019 2020 2020 Net earnings $25.8 $50.8 $24.0 $20.0 $35.9 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 May 31, Aug. 31, Nov. 30, Feb. 29, May 31, 2019 2019 2019 2020 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 3Q20 Earnings Slides & Supplemental Information Investor.Relations@gbrx.com www.gbrx.com
The Greenbrier Companies — Q3 2020 Earnings Presentation on 6ix