Greenbrier reports fourth quarter and fiscal year results
The Greenbrier Companies has reported its financial results for its fourth fiscal quarter and year ending August 31st, 2017.
Revenue for the quarter of $611.4m increased 39% from quarter ended May 31, 2017. Net earnings attributable to Greenbrier for the quarter were $23.7m. Adjusted EBITDA was $73.3m or 12% of revenue.
New railcar deliveries totaled 5,500 units for the quarter. Diversified orders of 2,500 railcars were received during the quarter, valued at $200m. In September, orders for another 1,400 units were received, valued at $120m. New railcar backlog as of August 31, 2017 was 28,600 units with an estimated value of $2.80bn.
Chairman and CEO, William A. Furman said: “Greenbrier delivered strong results for the fourth quarter and fiscal 2017. This positive financial performance was achieved by successfully executing on Greenbrier’s strategy to foster and grow its North American business, while simultaneously expanding to global markets. Greenbrier’s earnings exceeded our guidance range for fiscal 2017. Aggregate gross margin for the year remained healthy at 19.4%. Operationally, in a competitive North American freight railcar market, Greenbrier added market share during fiscal 2017, receiving orders exceeding 16,500 railcars valued at $1.5 billion – about double the number and value of railcar orders received in fiscal 2016. Management services added approximately 70,000 railcars to its managed fleet in the year and an additional 15,000 railcars post quarter end. Greenbrier now provides management services for over 20% of the North American fleet.
“Financially, we ended the year with a strong balance sheet and liquidity. The Board of Directors increased the quarterly dividend by 4.5% to $0.23 per share or an annualized rate of $0.92. We extended share repurchase authorization through March 2019, and improved the capital efficiency of Greenbrier through a newly formed lease warehouse facility. Greenbrier’s approach to capital deployment will continue to balance investing in internal projects, funding strategic growth, and returning capital to shareholders.
“The past year was transformative for Greenbrier, as we diversified our business with increased investments in Europe, Brazil and in the Gulf Cooperation Council region. Greenbrier will advance its international agenda further in fiscal 2018. Greenbrier’s backlog of over 28,600 units valued at $2.8 billion is higher now than at the beginning of fiscal 2017, providing visibility into fiscal 2018 and beyond. Backlog spans almost all railcar types and has grown both internationally and domestically. As we grow Greenbrier’s core North American business and see a larger contribution from international operations, we expect more deliveries to produce greater revenue and higher EPS in fiscal 2018 compared to fiscal 2017.”
For more information visit www.gbrx.com
20th Nov 2017
