LAKE OSWEGO, Ore. - The Greenbrier Companies, Inc. (NYSE: GBX) today reported financial results for its second fiscal quarter ended February 28, 2018.

Second Quarter Highlights

  • Net earnings attributable to Greenbrier for the quarter were $61.6million, or $1.91 per diluted share, on revenue of $629.3 million. Quarterly results included $0.89 per diluted share related to the Tax Cuts and Jobs Act (Tax Act) enacted December 22, 2017.
  • Adjusted EBITDA for the quarter was $79.1 million, or 12.6% of revenue. 
  • Orders for 3,400 diversified railcars were received during this quarter, valued at over $265 million.
  • New railcar backlog as of February 28, 2018 was 24,100 units with an estimated value of $2.3 billion. 
  • New railcar deliveries totaled 4,900 units for the quarter. 
  • Board increases quarterly dividend 9% to $0.25 per share, payable on May 16, 2018 to shareholders as of April 25, 2018. 
  • Subsequent to quarter end, Greenbrier's $119 million of 3.5% convertible notes converted into equity. Under the "if-converted" method, the shares were already included in EPS calculations and guidance. If the conversion would have occurred in February, total equity would have been $1.4 billion with total assets of $2.4 billion.

William A. Furman, Chairman and CEO, said, "The North American railcar market is improving but remains competitive.  Greenbrier's performance reflects the creativity and flexibility of its people and the strength of our strategy in North America and around the world.  Greenbrier's international expansion now meaningfully contributes each quarter with new sources of revenue and diversification of backlog.  Nearly half of year-to-date order activity was generated in markets outside of North America.  We are replicating Greenbrier's core business model as part of the railcar renewal cycles in Brazil and parts of Europe."

Furman continued, "For the quarter we secured orders for 3,400 units globally, ending the quarter with 24,100 units in backlog, valued at $2.3 billion.  At the midpoint of the fiscal year we are confident of achieving full year guidance; a validation of the strength and value of Greenbrier's market approach.  Cash flow remains strong, enabling us to continue a balanced capital allocation strategy.  The Board of Directors approved a 9% increase in quarterly dividend to $0.25 per share, part of Greenbrier's ongoing commitment to returning capital to shareholders in a prudent and efficient manner."

Furman concluded, "Greenbrier's strong backlog, driven by a broad product line and innovative service offerings, allows discipline in the current competitive environment.  Growing customer confidence and increased utilization of the North American rail fleet is generating increased demand for Greenbrier products and services.  Greenbrier creates transactions tailored for customers' success.  Our strategy remains to grow the business, domestically and internationally, well beyond the current fiscal year."