Greenbrier Companies, Inc. (the) · NYSE:GBX
Greenbrier Companies, Inc. (the) — The Greenbrier Companies — Q4 2020 Earnings Presentation
19 slides from Greenbrier Companies, Inc. (the)'s earnings presentation, Oct 23, 2020
Slide 1: 4Q20 Earnings Slides & Supplemental Information
NYSE: GBX 4Q20 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: Q4 FY 2020 Highlights
Q4 FY 2020 Highlights Financial Results for Q4 FY 2020 • Liquidity of $919.6 million, including $833.7 million in cash and $85.9 million of available borrowing capacity. Combined with nearly $200 of additional initiatives in progress, exceeded the $1 billion liquidity and cost $636.4mn $2.4bn saving
Slide 4: Business Response to Market Conditions
Business Response to Market Conditions Ensure the safety of our Maintain operational Preserve our economic well- employees capabilities being • Policies meeting or exceeding CDC • Operations constitute “Essential • Taking swift action to achieve recommendations at all facilities Infrastructure” and
Slide 5: Strong Balance Sheet and Liquidity Provide Flexibility
Strong Balance Sheet and Liquidity Provide Flexibility (1) (2) Net Funded Debt / Adjusted EBITDA Liquidity Summary ($ in millions) 6.0x $1,200 5.5x $981 5.0x $1,000 $950 4.6x $920 $86 4.0x $800 $339 $450 Increase due to ARI acquisition $641 financing $573 $600 3.0x 2.7x $506 $441 $312 $401 2.0x $400
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) $4.0 $106 $106 $108 $98 $100 $98 Balcklog Value ($ in billions) $3.5 $100 $3.0 $79 $80 $80 $2.5 $4.7 $60 $2.0 $3.3 $3.2 $3.3 $1.5 $40 $2.8 $2.7 $2.4 $1.0 $1.5 $20 $0.5 $1.2 $1.2
Slide 7: Strong Financial Performance
Strong Financial Performance Revenue Deliveries(1) $3,500 25 21.7 Deliveries (in thousands) $3,000 $2,792 20 $2,500 $2,000 15 $1,500 10 $1,000 5 $500 $- 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Adj. diluted EPS(2) Net Funded Debt
Slide 8: Key Operational Metrics
Key Operational Metrics Backlog(1) Deliveries(1) Syndicated Deliveries 7,300 1,800 30,300 30,800 28,500 1,600 26,700 6,200 5,900 24,600 5,100 4,500 900 500 200 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q20 Orders for 2,800 railcars valued at approximately $250.0 million
Slide 9: 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 $23.5 $713.0 $183.2 $629.5 $558.0 $5.5 $520.1 $72.9 $351.8 $(2.7) $(3.6) $(22.2) $(70.3) $(62.9) 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q
Slide 10: Manufacturing Segment Update
Manufacturing Segment Update Revenue and Gross Margin % Recent Developments $2.4 24% • Revenue for the quarter reflects lower production rates $2.0 20% Gross margin % and less syndication activity resulting in fewer deliveries $ in Billions $1.6 16% • Gross margin % in the quarter reflects operating
Slide 11: Wheels, Repair and Parts
Wheels, Repair and Parts Revenue and Gross Margin %(1) Recent Developments $600 • Quarterly revenue decrease reflects reduced wheel $500 12% Gross margin % $ in Millions volumes and activity repair $400 8% • Quarterly gross margin % decrease reflects operating $300 inefficiencies due to lower busine
Slide 12: Leasing & Services
Leasing & Services Revenue and Gross Margin % Recent Developments $300 70% • Revenue decrease in the quarter reflects less interim rent $250 60% Gross margin % 50% $ in Millions on leased railcars for syndication and no externally $200 40% sourced syndication sales $150 30% • Quarterly gross margin
Slide 13: Unique Model Provides Maximum Flexibility
Unique Model Provides Maximum Flexibility DIRECT MANUFACTURING LEASING & SERVICES Cars temporarily reside on Greenbrier’s balance sheet Railcars orders by HOLD (“Leased railcars for Syndication”), generating income customers or for syndication for Leasing & Services Unit Cars aggregated and sold to
Slide 14: Appendix
Appendix
Slide 15: Quarterly Trends by Segment
QUARTERLY TRENDS BY SEGMENT Manufacturing ($ in millions) 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 Footnotes Revenues $802.1 $657.4 $489.9 $653.0 $549.7 Gross Margin $116.1 $75.5 $67.6 $90.2 $51.5 (1) Excludes Brazil deliveries since they do not impact Manufacturing Revenue and Margins. Gross Margin % 14.5% 11
Slide 16: Annual Adjusted EBITDA Reconciliation
Annual Adjusted EBITDA Reconciliation Supplemental Disclosure Reconciliation of Net Earnings (loss) to Adjusted EBITDA (In millions) Year Ending August 31, 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net earnings (loss) $8.3 $8.4 $61.2 ($5.4) $149.8 $265.3 $284.8 $160.5 $172.1 $105.8 $87.
Slide 17: 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, 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net earnings (loss
Slide 18: 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 19: NYSE: GBX
NYSE: GBX 4Q20 Earnings Slides & Supplemental Information Investor.Relations@gbrx.com www.gbrx.com
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