Greenbrier Companies, Inc. (the) · NYSE:GBX
Greenbrier Companies, Inc. (the) — The Greenbrier Companies — Q1 2020 Earnings Presentation
25 slides from Greenbrier Companies, Inc. (the)'s earnings presentation, Jan 8, 2020
Slide 1: 1Q20 Earnings Slides & Supplemental Information
NYSE: GBX 1Q20 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 “aff
Slide 3: Q1 FY 2020 Highlights
Q1 FY 2020 Highlights Q1 orders of 4,500 railcars valued at $450 million Revenue of $769.4 million Continued integration of ARI’s manufacturing assets Quarterly deliveries of 6,200 units, including Brazil Backlog of 28,500 units valued at $3.1 billion Quarterly dividend increase of 8% to $0.27 per s
Slide 4: Integrated Business Model
Integrated Business Model Greenbrier’s integrated business model delivers superior value to customers by creating customized freight car solutions over the entire life of a railcar. Our diversified portfolio of quality products and services enhances our financial performance across the business cycl
Slide 5: Four Pillar Strategy Leverages Core Skills
Four Pillar Strategy Leverages Core Skills Core North International Talent Increase American Diversification Pipeline Scale Market 4
Slide 6: Manufacturing Flexibility Vital as Demand Changes
Manufacturing Flexibility Vital as Demand Changes 90,000 80,000 70,000 Long-term average ~50,000 units Industry Deliveries 60,000 50,000 40,000 30,000 20,000 10,000 - 2010 2011 2012 2013 2014 2015 2016 2017A 2018A 2019F 2020F 2021F 2022F 2023F Box Cov. Hoppers Coal Gondolas Flat Intermodal Tanks Oth
Slide 7: Growing Revenues through Diversification
Growing Revenues through Diversification Revenue $3,500 $3,034 $3,000 $158 $445 $2,500 Revenue (in millions) $2,000 Car types produced: $1,500 Tank cars, covered hoppers, intermodal units, $943 $2,431 boxcars, automotive $1,000 $92 carrying railcars, and $102 gondolas $500 Car types produced: $749 I
Slide 8: Growing Our Addressable Market
Growing Our Addressable Market Since 2007, product diversification and geographic expansion has grown the GBX new railcar manufacturing market by ~420% Total Addressable Market North American Backlog 3,000,000 100% Others, 2,454,000 Others, 16% 2,500,000 22% 200,000 80% 130,000 23,000 2,000,000 1,59
Slide 9: Lease Syndication
Lease Syndication Order Build Temporarily Hold Cars temporarily reside on Greenbrier’s balance sheet Customers order cars to Greenbrier Manufacturing (i.e. “Leased railcars for lease for their own use builds ordered cars Syndication”), generating lease income for Leasing & Services Unit Syndicate Ma
Slide 10: Strong Financial Performance
Strong Financial Performance Revenue FY20 Guidance: Deliveries(1) $3,500 25 23.4 $3,034 • Revenue of Deliveries (in thousands) $3,000 ~$3.5 billion 20 $2,500 $2,000 • Deliveries of 15 $1,500 26,000 – 28,000 10 $1,000 units 5 $500 $- • Adj. diluted 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 11: Greenbrier's Railcar Backlog Provides Earnings Visibility
Greenbrier’s 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 $98 $100 Balcklog Value ($ in billions) $3.5 $100 $89 $87 $3.0 $79 $80 $80 $2.5 $4.7 $60 $2.0 $3.3 $3.2 $3.3 $1.5 $3.1 $2.8 $2.7 $40 $1.0 $1
Slide 12: 1Q FY 2020 Key Metric Highlights
1Q FY 2020 Key Metric Highlights Backlog • Backlog 28,500 units valued at $3.1 30,300 28,500 billion 27,500 26,000 26,100 – Diverse backlog includes tank cars, covered hoppers, gondolas, automotive & flats, 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 boxcars, and intermodal cars Deliveries(1) 7,300 6,500 6,200 •
Slide 13: 1Q FY 2020 Income Statement Highlights
1Q FY 2020 Income Statement Highlights Revenue ($ millions) • Revenue of $769.4 million $856.2 $914.2 $769.4 $604.5 $658.7 • Gross margin of 12.0% • Adjusted EBITDA of $74.2 million 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 Adjusted(1) EBITDA ($ millions) – Adjusted EBITDA margin of 9.6% $84.4 $109.4 $74.2 $58.
Slide 14: 1Q FY 2020 Balance Sheet & Cash Flow Highlights
1Q FY 2020 Balance Sheet & Cash Flow Highlights Operating Cash Flow ($ millions) • Quarterly dividend increase of 8% to $52.5 $72.9 $0.27 per share or an annualized rate of $1.08 $(97.1) $(49.5) $(70.3) 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 • Nearly $600 million of available liquidity Net Capex & Invest. in
Slide 15: Manufacturing Quarterly Trends
Manufacturing Quarterly Trends 1Q Business Conditions ($ in millions) 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 • Revenue and gross margin decline driven by Revenues $ 471.8 $ 476.0 $ 681.6 $ 802.1 $657.4 fewer deliveries due to production delays and Gross Margin $54.0 $33.0 $90.8 $116.1 $75.5 minimal syndicati
Slide 16: Wheels, Repair & Parts Quarterly Trends
Wheels, Repair & Parts Quarterly Trends 1Q Business Conditions ($ in millions) 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 • Lower volumes driven by decreased rail traffic Revenues $108.5 $125.3 $125.0 $85.7 $86.6 • Gross margin increase driven by management initiatives and improved Wheels and Parts Gross Margin
Slide 17: Leasing & Services Quarterly Trends
Leasing & Services Quarterly Trends 1Q Business Conditions ($ in millions, except managed fleet) 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 • More normalized margin levels reflecting less secondary market syndication activity Revenues $24.2 $57.4 $49.6 $26.4 $25.4 Gross Margin $11.0 $14.0 $10.6 $13.4 $12.0 Gross
Slide 18: Leasing & Services Supplemental Information
Leasing & Services Supplemental Information Lease Syndication Model Owned & Managed Fleet • Over $1.2 billion of Syndication volume during the last two years • Owned Equipment on operating lease ‘right-sized’ over last (reported in Manufacturing segment) few years • One of two channels to market, ex
Slide 19: Appendix
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Slide 20: Quarterly Adjusted EBITDA Reconciliation
Quarterly Adjusted EBITDA Reconciliation Supplemental Disclosure Reconciliation of Net Earnings to Adjusted EBITDA (In millions, unaudited) Quarter Ending Nov. 30, Feb. 28, May 31, Aug. 31, Nov. 30, 2018 2019 2019 2019 2019 Net earnings $23.4 $5.8 $25.8 $50.8 $24.0 Goodwill impairment - - 10.0 - - A
Slide 21: 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 22: 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 Nov. 30, Feb. 28, May 31, Aug. 31, Nov. 30, 2018 2019 2019 2019 2019 Net earnings
Slide 23: 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 24: Adjusted Financial Metric Definition
Adjusted Financial Metric Definition Adjusted EBITDA, Adjusted net earnings attributable to Greenbrier, Adjusted diluted EPS and Adjusted diluted EPS range excluding integration and acquisition-related expenses from the ARI acquisition are not financial measures under generally accepted accounting p
Slide 25: NYSE: GBX
NYSE: GBX 1Q20 Earnings Slides & Supplemental Information Investor.Relations@gbrx.com www.gbrx.com
The Greenbrier Companies — Q1 2020 Earnings Presentation on 6ix