Greenbrier Companies, Inc. (the) · NYSE:GBX
Greenbrier Companies, Inc. (the) — The Greenbrier Companies — Q2 2021 Earnings Presentation
20 slides from Greenbrier Companies, Inc. (the)'s earnings presentation, Apr 6, 2021
Slide 1: 2Q21 Earnings Slides & Supplemental Information
NYSE: GBX 2Q21 Earnings Slides & Supplemental Information InvestorRelations@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 “adj
Slide 3: Q2 FY 2021 Highlights
Q2 FY 2021 Highlights • New railcar orders for 3,800 units valued at over $440 million, resulting in a 1.8x book-to-bill • Diversified new railcar backlog as of February 28, 2021 was 24,900 units with an estimated value of $2.5 billion • Immediate liquidity of $708 million, including $593 million in
Slide 4: Key Operational Metrics
Key Operational Metrics Backlog(1) Deliveries(1) Syndicated Deliveries 30,800 1,600 5,900 26,700 24,600 24,900 5,100 23,900 4,500 900 3,100 2,100 500 200 100 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21 Orders for 3,800 railcars valued at over $440 million received duri
Slide 5: Balance Sheet & Cash Flow Trends
Balance Sheet & Cash Flow Trends Operating Cash Flow Net Capex & Invest. in Net Funded Debt(2) Unconsolidated Affiliates(1) $222.2 $24.9 $183.2 $713.0 $9.1 $5.5 $520.1 $501.4 $376.7 $8.7 $351.8 $(3.6) $(62.9) $(22.2) $(103.4) 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21
Slide 6: Strong Balance Sheet and Liquidity Provide Flexibility
Strong Balance Sheet and Liquidity Provide Flexibility (1) (2) Net Funded Debt / Adjusted EBITDA Liquidity Summary ($ in millions) 5.0x $1,200 4.6x $981 $1,000 $950 4.0x $920 Increase due to $800 3.0x 2.8x $708 2.7x ARI acquisition $531 $641 financing $611 $573 $600 2.0x 1.9x $506 2.0x $441 $330 $83
Slide 7: Railcar Backlog Provides Earnings Visibility
Railcar Backlog Provides Earnings Visibility $5.00 $140 $4.50 $114 $116 $120 $112 Average Sales Price/Unit ($ in thousands) $4.00 $106 $106 $108 $100 $98 $101 $98 Balcklog Value ($ in billions) $3.50 $100 $3.00 $80 $80 $2.50 $4.71 $60 $2.00 $3.33 $3.19 $3.28 $1.50 $40 $2.80 $2.74 $2.42 $2.51 $1.00 $
Slide 8: Manufacturing Segment Update
Manufacturing Segment Update Revenue and Gross Margin % Recent Developments $3,000 25% • Fewer deliveries reflecting weak demand environment and $2,500 20% winter weather closures $ in Millions $2,000 15% • Reactivating and increasing production rates beginning in $1,500 10% Q3. $1,000 $500 5% $- 0%
Slide 9: Wheels, Repair and Parts
Wheels, Repair and Parts Revenue and Gross Margin %(1) Recent Developments $600 12% • Modestly increased wheel volumes from winter weather $500 10% $ in Millions and improved scrap pricing partially offset by continued $400 8% volume pressure in Repair $300 6% • Quarterly gross margin % reflects imp
Slide 10: Leasing & Services
Leasing & Services Revenue and Gross Margin % Recent Developments $300 70% • Prior quarter had externally sourced syndication activity $250 60% 50% $ in Millions which increases revenue but is dilutive to gross margin % $200 40% • Quarterly gross margin % reflects more normalized gross $150 30% marg
Slide 11: Unique Model Provides Maximum Flexibility
Unique Model Provides Maximum Flexibility DIRECT MANUFACTURING LEASING & SERVICES Cars temporarily reside on Greenbrier’s balance sheet Railcars ordered by HOLD (“Leased railcars for Syndication”), generating income customers or for syndication for Leasing & Services Unit Cars aggregated and sold to
Slide 12: GBX Leasing Enhances Potential Returns
GBX Leasing Enhances Potential Returns Complements Greenbrier’s integrated business model of railcar manufacturing and services Strengthens distribution and funding strategies allowing us to better serve our customers’ needs and deepen relationships Continues to grow a diverse lease portfolio,
Slide 13: Structure has Advantageous Tax Benefits
Structure has Advantageous Tax Benefits Depreciation for tax purposes allows for CAPEX (railcar purchases) to be depreciated on an accelerated 1 basis of up to 100% in the year it is incurred rather than GAAP depreciation, which occurs over the useful economic life of a railcar 2 This difference bet
Slide 14: Appendix
Appendix
Slide 15: Quarterly Segment Trends
Quarterly Segment Trends Manufacturing ($ in millions, except backlog and deliveries) 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 Footnotes Revenues $489.9 $653.0 $549.7 $308.7 $202.1 Gross Margin $67.6 $90.2 $51.5 $27.8 $0.32 (1) Excludes Brazil deliveries since they do not impact Manufacturing Revenue Gross Mar
Slide 16: Quarterly Adjusted EBITDA Reconciliation
Quarterly Adjusted EBITDA Reconciliation Supplemental Disclosure Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (In millions, unaudited) Quarter Ending Feb. 29, May 31, Aug. 31, Nov. 30, Feb. 28, 2020 2020 2020 2020 2021 Net earnings (loss) $20.0 $35.9 $7.7 ($6.6) (13.9) ARI acquisition an
Slide 17: Annual Adjusted EBITDA Reconciliation
Annual Adjusted EBITDA Reconciliation Supplemental Disclosure Reconciliation of Net Earnings (loss) to Adjusted EBITDA (In millions) Year Ending August 31, 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net earnings (loss) $8.4 $61.2 ($5.4) $149.8 $265.3 $284.8 $160.5 $172.1 $105.8 $87.6 Interest
Slide 18: 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) Year Ending August 31, 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net earnings (loss) att
Slide 19: Adjusted Financial Metric Definition
Adjusted Financial Metric Definition Adjusted EBITDA, Adjusted net earnings (loss) 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 G
Slide 20: 2Q21 Earnings Slides & Supplemental Information
NYSE: GBX 2Q21 Earnings Slides & Supplemental Information InvestorRelations@gbrx.com www.gbrx.com
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