PR Newswire | Apr 6, 2021 06:01AM EDT

04/06 05:00 CDT

Greenbrier Reports Second Quarter Results~ Strong liquidity positions Greenbrier for upcoming recovery~~ Orders for 3,800 new railcars valued at over $440 million - book-to-bill of 1.8x in the quarter~~ Backlog expanded to 24,900 units with estimated value of $2.5 billion~~ Trailing effects of COVID-19 and inclement weather produced a net loss attributable to Greenbrier of $9 million~~ Completed formation of GBX Leasing joint venture LAKE OSWEGO, Ore., April 6, 2021

LAKE OSWEGO, Ore., April 6, 2021 /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE: GBX) ("Greenbrier"), a leading international supplier of equipment and services to global freight transportation markets, today reported financial results for its second fiscal quarter ended February 28, 2021.

Second Quarter Highlights

* New railcar orders for 3,800 units valued at over $440 million during the quarter. Deliveries in the quarter were 2,100 units, 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, includes $593 million in cash and $115 million of available borrowing capacity. Combined with nearly $100 million of liquidity initiatives in progress totals over $800 million. * Operating cash flow in the quarter included inventory accumulation of $48 million to support manufacturing production increases beginning in fiscal Q3 and a $44 million increase in leased railcars for syndication. * COVID-19 related expenses for the quarter were $2.5 million (pre-tax) and $6.4 million (pre-tax) for the first half of fiscal 2021. * Net loss attributable to Greenbrier for the quarter was $9 million, or $0.28 per diluted share, on revenue of $296 million. The net loss included $16 million in anticipated federal income tax benefit resulting from loss carryback provisions. * Adjusted EBITDA for the quarter was negative $1 million. * Subsequent to quarter-end, completed the earlier announced formation of GBX Leasing joint venture, including initial funding of nearly $100 million from a new $300 million non-recourse railcar warehouse credit facility. * Board declares a quarterly dividend of $0.27 per share, payable on May 12, 2021 to shareholders as of April 21, 2021 representing Greenbrier's 28th consecutive quarterly dividend.

William A. Furman, Chairman & CEO commented, "Greenbrier navigated what we expect will be our most challenging quarter of the fiscal year. Operating challenges emerged from a range of sources, including winter weather, impacting deliveries and production. Our near-term outlook is becoming increasingly optimistic as rail fundamentals improve. Rail loadings are up year-to-date, driven by increased traffic in grain, intermodal and other categories. Railroad velocity has slowed by nearly two miles per hour. Railcars in storage have decreased by more than 148,000 units from the 2020 peak storage level. Proposed environmental and other regulations in both North America and Europe should support secular demand for rail as a growing mode for freight transport. Fiscal stimulus and proposed infrastructure legislation are expected to further add to demand."

Furman concluded, "Greenbrier is well-positioned for an economic recovery. Our pipeline of new business inquiries in North America has expanded dramatically in the last 30 days. Greenbrier's ability to adjust production capacity to meet our market outlook enables us to rapidly ramp manufacturing as we earn new railcar orders. We have already restarted several production lines supported by firm orders to meet increased demand."

Business Update & Outlook

Greenbrier has practiced disciplined management to meet the realities of this historic time. Our core strategy since March 2020 has been and continues to be:

* Maintain a strong liquidity base and balance sheet * Navigate the COVID-19 pandemic and the related economic crisis by safely operating our factories while generating cash * Prepare for emerging economic recovery and forward momentum in our markets, which we expect to expand during the latter half of calendar 2021. Greenbrier is currently operating in this phase. Looking ahead, Greenbrier expects the second half of fiscal 2021 to be stronger than the first half, reflecting increased production rates and stronger activity across the business. Greenbrier's ability to achieve more than $700 million of total liquidity, with another $100 million of initiatives in process, allows us to weather unanticipated setbacks in the emerging economic recovery. Our $2.5 billion backlog provides a baseload of orders to support continuous production lines. These factors position us to deploy our balance sheet opportunistically, as we have done with GBX Leasing. The recently-announced joint venture complements Greenbrier's existing commercial platform and will create stable, tax-advantaged cash flows, reducing our exposure to the new railcar order and delivery cycle.

Financial Summary

Q2 FY21Q1 FY21 Sequential Comparison - Main Drivers

Revenue $295.6M$403.0M 37% fewer deliveries reflecting weak demand environment and extreme winter weather Gross margin 6.0% 10.1%

Selling and administrative $43.4M $43.7M Maintaining cost discipline

Adjusted EBITDA ($1.3M)$23.2M Low new railcar deliveries and weak NA environment

Tax benefit from lease fleet investments and operating Effective tax rate 61.6% 55.5% losses carried back to prior years with higher tax rates under the CARES Act

Net (earnings) loss attributable to4.9M ($3.3M) Operating loss from fewer deliveries at GIMSA joint noncontrolling interest venture

Net loss attributable to ($9.1M)($10.0M)Lower operating activity reflecting fewer deliveries Greenbrier partially offset by income tax benefit

Diluted EPS ($0.28)($0.30)

Segment Summary

Q2 FY21Q1 FY21Sequential Comparison - Main Drivers

Manufacturing

Revenue $202.1M$308.7M Gross 0.2% 9.0% Fewer deliveries reflecting weak demand environment margin and winter weather closures Operating(8.5%) 3.1% margin ^(1)

Deliveries 1,700 2,700 ^(2)

Wheels, Repair & Parts

Modestly increased wheel volumes from winter Revenue $71.6M $65.6M weather and improved scrap pricing partially offset by continued decreased Repair volumes

Gross 6.9% 3.9% Improved volume in Wheel Services partially offset margin by weak Repair activity

Operating3.4% (0.3%) margin^ (1)

Leasing & Services

Prior quarter had externally sourced syndication Revenue $21.9M $28.7M activity which increases revenue but is dilutive to gross margin %

Gross 56.6% 35.8% More normalized gross margin activity margin

Operating margin^ (1)29.3% 20.5% Strong gross margin performance (3)

Fleet 94.8% 93.3% utilization

^(1) See supplemental segment information on page 12 for additional information.

^(2) Excludes Brazil deliveries which are not consolidated into manufacturing revenue and margins.

^(3) Includes Net gain on disposition of equipment, which is excluded from gross margin.

Conference Call

Greenbrier will host a teleconference to discuss its second quarter 2021 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website.

Teleconference details are as follows:

* April 6, 2021 * 8:00 a.m. Pacific Daylight Time * Phone: 1-888-317-6003 (Toll Free) 1-412-317-6061 (International), Entry Number "7592105" * Real-time Audio Access: ("Newsroom" at http://www.gbrx.com)

Please access the site 10 minutes prior to the start time.

About Greenbrier

Greenbrier, headquartered in Lake Oswego, Oregon, is a leading international supplier of equipment and services to global freight transportation markets. Greenbrier designs, builds and markets freight railcars and marine barges in North America. Greenbrier Europe is an end-to-end freight railcar manufacturing, engineering and repair business with operations in Poland, Romania and Turkey that serves customers across Europe and in the nations of the Gulf Cooperation Council. Greenbrier builds freight railcars and rail castings in Brazil through two separate strategic partnerships. We are a leading provider of freight railcar wheel services, parts, repair, refurbishment and retrofitting services in North America through our wheels, repair & parts business unit. Greenbrier offers railcar management, regulatory compliance services and leasing services to railroads and related transportation industries in North America. Through unconsolidated joint ventures, we produce industrial and rail castings, and other components. Greenbrier owns a lease fleet of 8,700 railcars and performs management services for 445,000 railcars. Learn more about Greenbrier at www.gbrx.com.

THE GREENBRIER COMPANIES, INC.

Consolidated Balance Sheets

(In thousands, unaudited)

February 28, November 30, August 31, May 31, February 29, 2021 2020 2020 2020 2020

Assets

Cash and cash $ 593,499 $ $ 833,745 $ 735,258 $ 169,899equivalents 724,547

Restricted 8,614 8,547 8,342 8,704 8,569cash

Accounts 236,171 216,220 230,488 261,629 325,056receivable, net

Income tax 62,103 24,448 9,109 - 1,173receivable

Inventories 522,984 490,282 529,529 675,442 709,115

Leasedrailcars for 109,287 51,087 107,671 136,144 255,073syndication

Equipment onoperating leases, 445,451 445,542 350,442 355,841 385,974net

Property,plant and 687,468 696,333 711,524 719,155 723,326equipment, net

Investment inunconsolidated 70,820 72,254 72,354 75,508 79,082affiliates

Intangiblesand other assets, 190,283 186,509 190,322 181,315 160,709net

Goodwill 132,685 130,315 130,308 130,035 129,684

$ 3,059,365 $ $ 3,173,834 $ 3,279,031 $ 2,947,660 3,046,084

Liabilities andEquity

Revolving $ 275,839 $ $ 351,526 $ 416,535 $ 37,196notes 276,248

Accountspayable and 448,571 434,138 463,880 488,969 499,898accruedliabilities

Deferred 24,798 10,120 7,701 4,354 9,173income taxes

Deferred 42,572 36,916 42,467 63,536 70,869revenue

Notes payable, 793,189 797,089 804,088 806,919 811,860net

Contingentlyredeemable 30,037 30,711 31,117 30,611 30,782noncontrolling interest

Total equity - 1,268,502 1,280,407 1,293,043 1,291,221 1,286,472Greenbrier

Noncontrolling 175,857 180,455 180,012 176,886 201,410interest

Total equity 1,444,359 1,460,862 1,473,055 1,468,107 1,487,882

$ 3,059,365 $ $ 3,173,834 $ 3,279,031 $ 2,947,660 3,046,084

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Operations

(In thousands, except per share amounts, unaudited)

Three Months Ended Six Months Ended

February 28, February 29, February 28, February 29,

2021 2020 2021 2020

Revenue

$ 202,094 $ 489,943 $ 510,816 $ 1,147,310Manufacturing

Wheels, Repair 71,623 91,225 137,179 177,833& Parts

Leasing & 21,905 42,680 50,616 68,064Services

295,622 623,848 698,611 1,393,207

Cost ofrevenue

201,771 422,309 482,661 1,004,221Manufacturing

Wheels, Repair 66,667 84,373 129,651 166,265& Parts

Leasing & 9,513 30,830 27,957 44,196Services

277,951 537,512 640,269 1,214,682

Margin 17,671 86,336 58,342 178,525

Selling andadministrative 43,425 54,597 87,132 108,961expense

Net gain ondisposition of (27) (6,697) (949) (10,656)equipment

Earnings(loss) from (25,727) 38,436 (27,841) 80,220operations

Other costs

Interest andforeign 9,568 12,609 20,671 25,461exchange

Earnings(loss) beforeincome tax andearnings (35,295) 25,827 (48,512) 54,759(loss) fromunconsolidatedaffiliates

Income taxbenefit 21,752 (7,463) 29,084 (13,457)(expense)

Earnings(loss) beforeearnings(loss) from (13,543) 18,364 (19,428) 41,302

unconsolidatedaffiliates

Earnings(loss) from (378) 1,651 (1,122) 2,724unconsolidatedaffiliates

Net earnings (13,921) 20,015 (20,550) 44,026(loss)

Net (earnings)lossattributable 4,856 (6,386) 1,513 (22,728)tononcontrollinginterest

Net earnings(loss) $ (9,065) $ 13,629 $ (19,037) $ 21,298attributableto Greenbrier

Basic earnings(loss) per $ (0.28) $ 0.42 $ (0.58) $ 0.65common share:

Dilutedearnings $ $ 0.41 $ (0.58) $ 0.64(loss) per (0.28)common share:

Weightedaverage commonshares:

Basic 32,810 32,661 32,766 32,645

Diluted 32,810 33,482 32,766 33,382

Dividends per $ 0.27 $ 0.27 $ 0.54 $ 0.52common share

THE GREENBRIER COMPANIES, INC.

Supplemental Information

(In thousands, except per share amounts, unaudited)

Operating Results by Quarter for 2021 are as follows:

First Second Total

Revenue

Manufacturing $ 308,722 $ 202,094 $ 510,816

Wheels, Repair & 65,556 71,623 137,179Parts

Leasing & Services 28,711 21,905 50,616

402,989 295,622 698,611

Cost of revenue

Manufacturing 280,890 201,771 482,661

Wheels, Repair & 62,984 66,667 129,651Parts

Leasing & Services 18,444 9,513 27,957

362,318 277,951 640,269

Margin 40,671 17,671 58,342

Selling and 43,707 43,425 87,132administrative expense

Net gain on disposition (922) (27) (949)of equipment

Loss from operations (2,114) (25,727) (27,841)

Other costs

Interest and foreign 11,103 9,568 20,671exchange

Loss before income taxand loss fromunconsolidated (13,217) (35,295) (48,512)

affiliates

Income tax benefit 7,332 21,752 29,084

Loss before loss fromunconsolidated (5,885) (13,543) (19,428)affiliates

Loss from unconsolidated (744) (378) (1,122)affiliates

Net Loss (6,629) (13,921) (20,550)

Net (earnings) lossattributable to (3,343) 4,856 1,513noncontrolling interest

Net Loss attributable to $ (9,972) $ (9,065) $ (19,037)Greenbrier

Basic loss per common $ $ $ (0.58)share ^(1) (0.30) (0.28)

Diluted loss per common $ $ $ (0.58)share ^(1) (0.30) (0.28)

Dividends per common $ 0.27 $ 0.27 $ 0.54share

Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated by including the^ dilutive effect, using the treasury stock method, associated with shares(1) underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved.

THE GREENBRIER COMPANIES, INC.

Supplemental Information

(In thousands, except per share amounts, unaudited)

Operating Results by Quarter for 2020 are as follows:

First Second Third Fourth Total

Revenue

$ 657,367 $ 489,943 $ 653,007 $ 549,654 $ 2,349,971Manufacturing

Wheels, 86,608 91,225 82,024 64,813 324,670Repair & Parts

Leasing & 25,384 42,680 27,526 21,958 117,548Services

769,359 623,848 762,557 636,425 2,792,189

Cost ofrevenue

581,912 422,309 562,793 498,155 2,065,169Manufacturing

Wheels, 81,892 84,373 75,001 60,923 302,189Repair & Parts

Leasing & 13,366 30,830 17,232 10,272 71,700Services

677,170 537,512 655,026 569,350 2,439,058

Margin 92,189 86,336 107,531 67,075 353,131

Selling andadministrative 54,364 54,597 49,494 46,251 204,706expense

Net gain ondisposition of (3,959) (6,697) (8,775) (573) (20,004)equipment

Earnings from 41,784 38,436 66,812 21,397 168,429operations

Other costs

Interest andforeign 12,852 12,609 7,562 10,596 43,619exchange

Earningsbefore incometax andearnings 28,932 25,827 59,250 10,801 124,810(loss) fromunconsolidatedaffiliates

Income tax (5,994) (7,463) (24,421) (2,306) (40,184)expense

Earningsbeforeearnings 22,938 18,364 34,829 8,495 84,626(loss) fromunconsolidatedaffiliates

Earnings(loss) from 1,073 1,651 1,040 (804) 2,960unconsolidatedaffiliates

Net earnings 24,011 20,015 35,869 7,691 87,586

Net earningsattributableto (16,342) (6,386) (8,097) (7,794) (38,619)noncontrollinginterest

Net earnings(loss) $ 7,669 $ 13,629 $ 27,772 $ (103) $ 48,967attributableto Greenbrier

Basic earningsper common $ 0.24 $ 0.42 $ 0.85 $ (0.00) $ 1.50share ^(1)

Dilutedearnings per $ 0.23 $ 0.41 $ 0.83 $ (0.00) $ 1.46common share ^(1)

Dividends per $ 0.25 $ 0.27 $ 0.27 $ 0.27 $ 1.06common share

Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated by including the^ dilutive effect, using the treasury stock method, associated with shares(1) underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved.

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Cash Flows

(In thousands, unaudited)

Six Months Ended

February 28, February 29,

2021 2020

Cash flows from operating activities

Net earnings (loss) $ (20,550) $ 44,026

Adjustments to reconcile net earnings(loss) to net cash used in

operating activities:

Deferred income taxes 16,969 (6,714)

Depreciation and amortization 50,868 59,338

Net gain on disposition of equipment (949) (10,656)

Accretion of debt discount 2,857 2,718

Stock based compensation expense 8,951 7,237

Noncontrolling interest adjustments (1,285) 9,038

Other 1,135 (39)

Decrease (increase) in assets:

Accounts receivable, net (10,735) 47,282

Income tax receivable (52,994) (1,173)

Inventories (35,005) (55,158)

Leased railcars for syndication (37,988) (123,033)

Other assets (2,895) (39,433)

Increase (decrease) in liabilities:

Accounts payable and accrued (13,257) (67,988)liabilities

Deferred revenue 104 1,381

Net cash used in operating activities (94,774) (133,174)

Cash flows from investing activities

Proceeds from sales of assets 11,336 41,827

Capital expenditures (50,353) (40,834)

Investments in and advances to/repayments 4,523 (1,500)from unconsolidated affiliates

Cash distribution from unconsolidated 488 11,273affiliates and other

Net cash provided by (used in) investing (34,006) 10,766activities

Cash flows from financing activities

Net change in revolving notes with 98,442 10,246maturities of 90 days or less

Proceeds from revolving notes with 112,000 -maturities longer than 90 days

Repayments of revolving notes with (286,000) -maturities longer than 90 days

Repayments of notes payable (14,990) (17,120)

Dividends (18,046) (17,312)

Cash distribution to joint venture partner (3,646) (8,706)

Tax payments for net share settlement of (2,357) (1,895)restricted stock

Net cash used in financing activities (114,597) (34,787)

Effect of exchange rate changes 3,403 (2,824)

Decrease in cash, cash equivalents and (239,974) (160,019)restricted cash

Cash and cash equivalents and restricted cash

Beginning of period 842,087 338,487

End of period $ 602,113 $ 178,468

Balance Sheet Reconciliation

Cash and cash equivalents $ 593,499 $ 169,899

Restricted cash 8,614 8,569

Total cash and cash equivalents and $ 602,113 $ 178,468restricted cash as presented above

THE GREENBRIER COMPANIES, INC.

Supplemental Information

(In thousands, excluding backlog and delivery units, unaudited)

Reconciliation of Net loss to Adjusted EBITDA

Three Months Ended

February 28, November 30,

2021 2020

Net loss $ (13,921) $ (6,629)

Interest and foreign exchange 9,568 11,103

Income tax benefit (21,752) (7,332)

Depreciation and amortization 24,822 26,046

Adjusted EBITDA $ (1,283) $ 23,188

Three Months Ended

February 28,

2021

Backlog Activity (units) ^(1)

Beginning backlog 23,900

Orders received 3,800

Production held as Leased railcars for syndication (800)

Production sold directly to third parties (2,000)

Ending backlog 24,900

Delivery Information (units) ^(1)

Production sold directly to third parties 2,000

Sales of Leased railcars for syndication 100

Total deliveries 2,100

(1) Includes Greenbrier-Maxion, our Brazilian railcar manufacturer, which is accounted for under the equity method

THE GREENBRIER COMPANIES, INC.

Supplemental Leasing Information

(In thousands, except owned and managed fleet, unaudited)



February 28, November 30, 2021 2020

Owned fleet 8,700 8,400

Managed fleet 445,000 407,000

Owned fleet utilization 95% 93%



February 28, November 30, 2021 2020

Leased railcars for $ $ syndications 109,287 51,087

Equipment on operating 445,451 445,542 lease

Total $ $ 554,738 496,629



Leasing non-recourse debt $ $ 206, 204,722 629

Recourse debt 588,467 590,460

Total debt $ $ 793,189 797,089



Fleet leverage %^(1) 37% 42%

(1) Leasing non-recourse debt / Sum of leased railcars for syndication and equipment on operating lease

THE GREENBRIER COMPANIES, INC.

Supplemental Information

(In thousands, unaudited)

Segment Information

Three months ended February 28, 2021:

Revenue Earnings (loss) from operations

External Intersegment Total External Intersegment Total

Manufacturing $ 202,094 $ 2,425 $ 204,519 $ (17,216) $ 100 $ (17,116)

Wheels,Repair & 71,623 1,603 73,226 2,433 (14) 2,419Parts

Leasing & 21,905 1,113 23,018 6,420 634 7,054Services

Eliminations - (5,141) (5,141) - (720) (720)

Corporate - - - (17,364) - (17,364)

$ 295,622 $ $ 295,622 $ (25,727) $ $ (25,727) - -

Three months ended November 30, 2020:

Revenue Earnings (loss) from operations

External Intersegment Total External Intersegment Total

Manufacturing $ 308,722 $ 20,591 $ 329,313 $ 9,686 $ 2,505 $ 12,191

Wheels,Repair & 65,556 301 65,857 (200) (9) (209)Parts

Leasing & 28,711 4,665 33,376 5,890 4,285 10,175Services

Eliminations - (25,557) (25,557) - (6,781) (6,781)

Corporate - - - (17,490) - (17,490)

$ 402,989 $ $ 402,989 $ $ $ (2,114) - (2,114) -

Total assets

February 28, November 30, 2021 2020

Manufacturing $ 1,313,819 $ 1,264,616

Wheels, Repair & Parts 277,788 274,534

Leasing & Services 851,546 758,820

Unallocated 616,212 748,114

$ 3,059,365 $ 3,046,084

"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This press release 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 "adjust," "become," "continue," "expect," "maintain," "outlook," "position," "should," "will," and similar expressions to identify forward-looking statements. These forward-looking statements include, without limitation, statements about backlog, and future liquidity and cash flow as well as other information regarding future performance and strategies and appear throughout this press release including in the headlines and the section "Business Update & Outlook." These forward-looking statements are not guarantees of future performance and are subject to certain risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements. Factors that might cause such a difference include, but are not limited to, the following. (1) We are unable to predict when, how, or with what magnitude COVID-19 governmental reaction to the pandemic, and related economic disruptions will negatively impact our business: we may be prevented from operating our facilities; the operations of our customers may be disrupted increasing the likelihood that our customers may attempt to delay, defer or cancel orders, or cease to operate as going concerns; the operations of our suppliers may be disrupted; our indebtedness may increase; we may breach the covenants in our credit agreement; the market price of our common stock may drop or remain volatile; we may incur significant employee health care costs under our self-insurance programs. The longer the pandemic continues, the more likely that negative impacts on our business will occur, some of which we cannot now foresee. (2) Our backlog of railcar units and marine vessels is not necessarily indicative of future results of operations. Certain orders in backlog are subject to customary documentation which may not occur. Customers may attempt to cancel or modify orders or refuse to accept and pay for products. The likelihood of cancellations, modifications, rejection and non-payment for our products generally increases during periods of market weakness. The timing of converting backlog to revenue is also materially impacted by our decision whether to lease railcars, sell railcars, or syndicate railcars with a lease attached to an investor. (3) Our joint ventures, including our leasing joint venture, may not perform as anticipated or expected. More information on potential factors that could cause our results to differ from our forward-looking statements is included in the Company's filings with the SEC, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's most recently filed periodic report on Form 10-K and subsequent report on 10-Q. Except as otherwise required by law, the Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date hereof.

Adjusted Financial Metric Definitions

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 Greenbrier. You should not consider these metrics in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because these metrics are not a measure of financial performance under GAAP and are susceptible to varying calculations, the measures presented may differ from and may not be comparable to similarly titled measures used by other companies.

We define Adjusted EBITDA as Net earnings (loss) before Interest and foreign exchange, Income tax benefit (expense), Depreciation and amortization and excluding the impact associated with items we do not believe are indicative of our core business or which affect comparability. We believe the presentation of Adjusted EBITDA provides useful information as it excludes the impact of financing, foreign exchange, income taxes and the accounting effects of capital spending. These items may vary for different companies for reasons unrelated to the overall operating performance of a company's core business. We believe this assists in comparing our performance across reporting periods.

Adjusted net earnings (loss) attributable to Greenbrier and Adjusted diluted EPS excludes the impact associated with items we do not believe are indicative of our core business or which affect comparability. We believe this assists in comparing our performance across reporting periods.

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SOURCE The Greenbrier Companies, Inc.