PR Newswire | Jul 9, 2021 06:01AM EDT

07/09 05:00 CDT

Greenbrier Reports Third Quarter Results~ GAAP diluted EPS of $0.59; Adjusted diluted EPS of $0.69~~ Orders for 3,800 new railcars valued at $400 million - book-to-bill of 1.2x in the quarter~~ Formation and funding of GBX Leasing finalized in the quarter~~ Robust liquidity supports increasing operating momentum LAKE OSWEGO, Ore., July 9, 2021

LAKE OSWEGO, Ore., July 9, 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 third fiscal quarter ended May 31, 2021.

Third Quarter Highlights

* New railcar orders for 3,800 units valued at $400 million and deliveries of 3,300 units, resulted in a 1.2x book-to-bill. This is the second consecutive quarter that book-to-bill exceeded 1.0x. Orders included intermodal units, tank cars, boxcars and covered hoppers. * Diversified new railcar backlog as of May 31, 2021 was 24,800 units with an estimated value of $2.6 billion. * Liquidity of approximately $850 million, including $628 million in cash and $221 million of available borrowing capacity. Liquidity and $149 million of initiatives in progress total nearly $1 billion. * COVID-19 related expenses for the quarter were $1.9 million (pre-tax) and $8.3 million (pre-tax) for the nine months ended May 31, 2021. * Net earnings attributable to Greenbrier for the quarter were $19.7 million, or $0.59 per diluted share, on revenue of $450 million. Net earnings included $3.6 million ($0.10 per share), of loss on extinguishment of debt, net of tax. * Adjusted net earnings attributable to Greenbrier for the quarter were $23.3 million or $0.69 per diluted share and adjusted EBITDA for the quarter was $53 million. * GBX Leasing was formed in the quarter to create stable, tax-advantaged cash flows with initial railcar funding of nearly $100 million, under a $300 million non-recourse warehouse credit facility. GBX Leasing is consolidated in Greenbrier's financial statements, see supplemental information in this release. * Debt maturities were extended in the quarter with the issuance of $374 million of senior convertible notes due in 2028 and retirement of $257 million of 2024 senior convertible notes. * Repurchased $20 million of common stock in connection with the convertible note issuance. $100 million remains authorized under the share repurchase plan. * Board declares a quarterly dividend of $0.27 per share, payable on August 18, 2021 to shareholders of record as of July 28, 2021 representing Greenbrier's 29th consecutive quarterly dividend.

William A. Furman, Chairman & CEO commented, "Greenbrier's financial results for the third fiscal quarter reflect the steady recovery in our markets that we forecasted would occur in the second half of our fiscal year. Our COVID strategy launched in March 2020 has been very successful. We are executing well on plans to maintain a liquidity base and strong balance sheet as well as safely operate each of our facilities. All of this has been necessary to prepare for the now emerging recovery. As positive momentum continues, we are seizing opportunities to resume the pursuit of scale we began during the two years prior to the pandemic. In the third fiscal quarter this included the formation of GBX Leasing and completion of a strategic debt refinancing that extended maturities on convertible notes by four years."

Furman added, "We are benefiting from the economic recovery in railcar manufacturing and leasing as expected. This is playing out through sequential monthly increases in manufacturing revenues and a meaningful increase in new order activity in our core North American markets. The ability to ramp production capacity is integral to protecting Greenbrier's leadership position in the market. New orders will not increase linearly, but we expect commercial activity to remain strong as our $2.6 billion backlog provides a baseload of orders to support the expanded operation of production lines and our leasing business."

Business Update & Outlook

Greenbrier's adherence to its core COVID strategy during the third fiscal quarter produced the best quarterly performance to date in fiscal 2021. Since March 2020, Greenbrier has practiced disciplined management to meet the realities of this once in 100 years pandemic. Operating and commercial momentum is building. In our domestic and international markets, Greenbrier's core COVID strategy was 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 flow * Prepare for emerging economic recovery and forward momentum in our markets. Greenbrier is currently operating in this phase. Greenbrier is well-positioned to navigate the immediate challenges of increasing production rates safely amidst the emerging COVID variants, while ensuring labor and supply chain continuity. Looking ahead, Greenbrier expects the fourth quarter to be the strongest performance of the year. A full quarter of increased production rates and business activity creates positive momentum into fiscal 2022.

Financial Summary

Q3 FY21 Q2 FY21Sequential Comparison - Main Drivers

65% higher deliveries reflecting increased Revenue $450.1M $295.6Mproduction levels and overall improving demand environment

Primarily increased production rates in Gross margin 16.7% 6.0% Manufacturing and favorable resolution of warranty & other contingencies in international operations

Selling and $49.2M $43.4M Increased consulting and employee-related costs administrative including performance-based compensation expense

Adjusted $52.9M ($1.3M)Higher operating earnings reflecting improving EBITDA demand environment; See reconciliation on page 12

Net (earnings) loss attributable ($0.3M) $4.9M Increased operating activity at GIMSA joint ventureto noncontrolling interest

Adjusted net Primarily increased activity across all business earnings units and tax benefit from lease fleet investments (loss) $23.3M^(1)($9.1M)and operating losses carried back to prior years attributable with higher tax rates allowable under the CARES Actto Greenbrier

Adjusted $0.69^(1) ($0.28) diluted EPS

^(1) Excludes $3.6 million ($0.10 per share), net of tax, of loss on debtextinguishment.

Segment Summary

Q3 FY21Q2 FY21Sequential Comparison - Main Drivers

Manufacturing

Revenue $341.9M$202.1MHigher deliveries reflecting improving demand levels

Higher production & delivery and favorable Gross 14.5% 0.2% resolution of warranty and other contingencies; margin Excluding these items, gross margin would be in the low double digits

Operating9.2% (8.5%) margin ^(1)

Deliveries 2,800 1,700 Higher production rates ^(2)

Wheels, Repair & Parts

Revenue $80.9M $71.6M Increased demand levels across the network

Gross 8.9% 6.9% Higher volumes driving improved performance margin

Operating5.2% 3.4% margin^ (1)

Leasing & Services (including GBX Leasing)

Revenue $27.3M $21.9M Gross 67.6% 56.6% margin Revenue and margin include enhanced syndication financing activity Operating margin^ (1)44.9% 29.3% (3)

Fleet 93.8% 94.8% utilization

^(1) See supplemental segment information on page 11 for additionalinformation.

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

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

Conference Call

Greenbrier will host a teleconference to discuss its third quarter 2021 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. Teleconference details are as follows:

* July 9, 2021 * 8:00 a.m. Pacific Daylight Time * Phone: 1-888-317-6003 (Toll Free) 1-412-317-6061 (International), Entry Number "2776228" * Real-time Audio Access: ("Newsroom" at http://www.gbrx.com)

Please access the site 10-15 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. Through its wholly-owned subsidiaries and joint ventures, Greenbrier designs, builds and markets freight railcars and marine barges in North America, Europe and Brazil. 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 manages 445,000 railcars and offers railcar management, regulatory compliance services and leasing services to railroads and other railcars owners in North America. GBX Leasing (GBXL) is a special purpose subsidiary that owns and manages a portfolio of leased railcars that originate primarily from Greenbrier's manufacturing operations. Together, GBXL and Greenbrier own a lease fleet of 8,700 railcars. Learn more about Greenbrier at www.gbrx.com.

THE GREENBRIER COMPANIES, INC.

Consolidated Balance Sheets

(In thousands, unaudited)

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

Assets

Cash and cash equivalents $ 628,200 $ 593,499 $ 724,547 $ 833,745 $ 735,258

Restricted cash 8,689 8,614 8,547 8,342 8,704

Accounts receivable, net 274,792 236,171 216,220 230,488 261,629

Income tax receivable 75,135 62,103 24,448 9,109 -

Inventories 553,137 522,984 490,282 529,529 675,442

Leased railcars for syndication 154,017 109,287 51,087 107,671 136,144

Equipment on operating leases, 446,888 445,451 445,542 350,442 355,841net

Property, plant and equipment, 676,010 687,468 696,333 711,524 719,155net

Investment in unconsolidated 79,420 70,820 72,254 72,354 75,508affiliates

Intangibles and other assets, net 180,829 190,283 186,509 190,322 181,315

Goodwill 133,050 132,685 130,315 130,308 130,035

$ 3,210,167 $ 3,059,365 $ 3,046,084 $ 3,173,834 $ 3,279,031

Liabilities and Equity

Revolving notes $ 325,150 $ 275,839 $ 276,248 $ 351,526 $ 416,535

Accounts payable and accrued 480,373 448,571 434,138 463,880 488,969liabilities

Deferred income taxes 44,900 24,798 10,120 7,701 4,354

Deferred revenue 43,676 42,572 36,916 42,467 63,536

Notes payable, net 835,027 793,189 797,089 804,088 806,919

Contingently redeemable 30,323 30,037 30,711 31,117 30,611noncontrolling interest

Total equity - Greenbrier 1,286,763 1,268,502 1,280,407 1,293,043 1,291,221

Noncontrolling interest 163,955 175,857 180,455 180,012 176,886

Total equity 1,450,718 1,444,359 1,460,862 1,473,055 1,468,107

$ 3,210,167 $ 3,059,365 $ 3,046,084 $ 3,173,834 $ 3,279,031

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Income

(In thousands, except per share amounts, unaudited)

Three Months Ended Nine Months Ended May 31, May 31,

2021 2020 2021 2020

Revenue

$ 341,939 $ 653,007 $ 852,755 $ 1,800,317Manufacturing

Wheels, Repair 80,871 82,024 218,050 259,857& Parts

Leasing & 27,333 27,526 77,949 95,590Services

450,143 762,557 1,148,754 2,155,764

Cost ofrevenue

292,464 562,793 775,125 1,567,014Manufacturing

Wheels, Repair 73,690 75,001 203,341 241,266& Parts

Leasing & 8,857 17,232 36,814 61,428Services

375,011 655,026 1,015,280 1,869,708

Margin 75,132 107,531 133,474 286,056

Selling andadministrative 49,239 49,494 136,371 158,455expense

Net (gain)loss on 184 (8,775) (765) (19,431)disposition ofequipment

Earnings(loss) from 25,709 66,812 (2,132) 147,032operations

Other costs

Interest andforeign 10,204 7,562 30,875 33,023exchange

Net loss onextinguishment 4,763 - 4,763 -of debt

Earnings(loss) beforeincome tax and 10,742 59,250 (37,770) 114,009earnings fromunconsolidatedaffiliates

Income taxbenefit 6,914 (24,421) 35,998 (37,878)(expense)

Earnings(loss) beforeearnings from 17,656 34,829 (1,772) 76,131 unconsolidatedaffiliates

Earnings fromunconsolidated 2,379 1,040 1,257 3,764affiliates

20,035 35,869 (515) 79,895Net earnings(loss)

Net (earnings)lossattributable (298) (8,097) 1,215 (30,825)tononcontrollinginterest

Net earningsattributable $ 19,737 $ 27,772 $ 700 $ 49,070to Greenbrier

Basic earningsper common $ 0.61 $ 0.85 $ 0.02 $ 1.50share:

Dilutedearnings per $ 0.59 $ 0.83 $ 0.02 $ 1.47common share:

Weightedaverage commonshares:

Basic 32,573 32,690 32,726 32,660

Diluted 33,605 33,478 33,747 33,414

Dividends per $ 0.27 $ 0.27 $ 0.81 $ 0.79common share

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Cash Flows

(In thousands, unaudited)

Nine Months Ended

May 31,

2021 2020

Cash flows from operating activities

Net earnings (loss) $ (515) $ 79,895

Adjustments to reconcile net earnings (loss)provided by (used in)

operating activities:

Deferred income taxes 20,197 (11,450)

Depreciation and amortization 75,637 82,452

Net gain on disposition of equipment (765) (19,431)

Accretion of debt discount 4,639 4,102

Stock based compensation expense 12,468 8,265

Net loss on extinguishment of debt 4,763 -

Noncontrolling interest adjustments 343 2,826

Other 1,729 568

Decrease (increase) in assets:

Accounts receivable, net (49,160) 110,431

Income tax receivable (66,026) -

Inventories (92,294) 12,555

Leased railcars for syndication (55,532) (38,826)

Other assets 863 (59,212)

Increase (decrease) in liabilities:

Accounts payable and accrued liabilities 18,626 (77,243)

Deferred revenue 1,189 (5,900)

Net cash provided by (used in) operating activities (123,838) 89,032

Cash flows from investing activities

Proceeds from sales of assets 12,156 78,521

Capital expenditures (62,774) (55,326)

Investments in and advances to/repayments from 674 (1,500)unconsolidated affiliates

Cash distribution from unconsolidated affiliates and 652 11,273other

Net cash provided by (used in) investing activities (49,292) 32,968

Cash flows from financing activities

Net change in revolving notes with maturities of 90 147,571 214,932days or less

Proceeds from revolving notes with maturities 112,000 175,000longer than 90 days

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

Proceeds from issuance of notes payable 373,750 -

Repayments of notes payable (308,468) (24,002)

Debt issuance costs (14,067) -

Repurchase of stock (20,000) -

Dividends (26,882) (26,344)

Investment by joint venture partner 7,000 -

Cash distribution to joint venture partner (24,055) (36,152)

Tax payments for net share settlement of restricted (2,802) (2,266)stock

Net cash provided by (used in) financing activities (41,953) 301,168

Effect of exchange rate changes 9,885 (17,693)

Increase (decrease) in cash, cash equivalents and (205,198) 405,475restricted cash

Cash and cash equivalents and restricted cash

Beginning of period 842,087 338,487

End of period $ 636,889 $ 743,962

Balance Sheet Reconciliation

Cash and cash equivalents $ 628,200 $ 735,258

Restricted cash 8,689 8,704

Total cash and cash equivalents and restricted cash $ 636,889 $ 743,962as presented above

THE GREENBRIER COMPANIES, INC.

Supplemental Backlog and Delivery Information

Three Months Ended

May 31, 2021

Backlog Activity (units) ^(1)

Beginning backlog 24,900

Orders received 3,800

Production held as Leased railcars for syndication (800)

Production sold directly to third parties (3,100)

Ending backlog 24,800

Delivery Information (units) ^(1)

Production sold directly to third parties 3,100

Sales of Leased railcars for syndication 200

Total deliveries 3,300

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

Supplemental Leasing Information

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

GBX Leasing (GBXL) was formed in April 2021 as a joint venture with The Longwood Group to own and manage a portfolio of leased railcars primarily built by Greenbrier. Greenbrier owns approximately 90% of GBXL and consolidates it in Greenbrier's financial statements in the Leasing & Services segment. Longwood was formed in 2018 by D. Stephen Menzies to pursue a range of commercial investments in equipment transportation markets following his successful growth of Trinity Rail's leasing business over many years. GBXL adds an additional "go to market" element to Greenbrier's Commercial strategy of direct sales, partnerships with operating leasing companies, origination of leases for syndication partners as well as providing a platform for further growth at scale. GBXL will produce strong tax-advantaged cash flows. The goal is to add at least $200 million in railcar assets annually at about 3:1 debt to equity (or 75%) based on the fair market value of assets. During the quarter, an initial $300 million non-recourse warehouse credit facility was secured, and $129 million in fair market value of assets were acquired from Greenbrier's transaction flow. Over time the entity is expected to grow by at least $200 million in assets annually with a five year target of $1 billion of assets. The intent is to use the asset-backed securities market to refinance the warehouse facility and to convert to permanent financing before 2025 as scale and portfolio balance are achieved. Considerable tax benefits are generated from these investments, which are included in the consolidated financial results this year.

Key information for the consolidated Leasing & Services segment

May 31, February 28, (In Units) 2021 2021

Owned fleet 8,700 8,700

Managed fleet 445,000 445,000

Owned fleet utilization 94% 95%

May 31, February 28, 2021 2021

Equipment on operating $ $ lease 446,888 445,451



GBX Leasing non-recourse $ $ warehouse 96,576 -

Leasing non-recourse debt 202,815 204,722

Total Leasing non-recourse $ $ debt 299,391 204,722



Fleet leverage %^(1) 67% 46%

^(1) Total Leasing non-recourse debt / Equipment on operating lease

THE GREENBRIER COMPANIES, INC.

Supplemental Information

(In thousands, except per share amounts, unaudited)

Operating Results by Quarter for 2021 are as follows:

First Second Third Total

Revenue

$ 308,722 $ 202,094 $ 341,939 $ 852,755Manufacturing

Wheels, 65,556 71,623 80,871 218,050Repair & Parts

Leasing & 28,711 21,905 27,333 77,949Services

402,989 295,622 450,143 1,148,754

Cost ofrevenue

280,890 201,771 292,464 775,125Manufacturing

Wheels, 62,984 66,667 73,690 203,341Repair & Parts

Leasing & 18,444 9,513 8,857 36,814Services

362,318 277,951 375,011 1,015,280

Margin 40,671 17,671 75,132 133,474

Selling andadministrative 43,707 43,425 49,239 136,371expense

Net (gain)loss on (922) (27) 184 (765)disposition ofequipment

Earnings(loss) from (2,114) (25,727) 25,709 (2,132)operations

Other costs

Interest andforeign 11,103 9,568 10,204 30,875exchange

Net loss onextinguishment - - 4,763 4,763of debt

Earnings(loss) beforeincome tax andearnings (13,217) (35,295) 10,742 (37,770)(loss) fromunconsolidatedaffiliates

Income tax 7,332 21,752 6,914 35,998benefit

Earnings(loss) beforeearnings (5,885) (13,543) 17,656 (1,772)(loss) fromunconsolidatedaffiliates

Earnings(loss) from (744) (378) 2,379 1,257unconsolidatedaffiliates

Net earnings (6,629) (13,921) 20,035 (515)(loss)

Net (earnings)lossattributable (3,343) 4,856 (298) 1,215tononcontrollinginterest

Net earnings(loss) $ (9,972) $ (9,065) $ 19,737 $ 700attributableto Greenbrier

Basic earnings(loss) per $ (0.30) $ (0.28) $ 0.61 $ 0.02common share ^(1)

Dilutedearnings(loss) per $ (0.30) $ (0.28) $ 0.59 $ 0.02common share ^(1)

Dividends per $ 0.27 $ 0.27 $ 0.27 $ 0.81common share

^(1) Quarterly amounts may not total to the year to date amount as each period is calculated discretely.

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 earnings(loss) per $ 0.24 $ 0.42 $ 0.85 $ (0.00) $ 1.50common share ^(1)

Dilutedearnings(loss) 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

^(1) Quarterly amounts may not total to the year to date amount as each period is calculated discretely.

THE GREENBRIER COMPANIES, INC.

Supplemental Information

(In thousands, unaudited)

Segment Information

Three months ended May 31, 2021:

Revenue Earnings (loss) from operations

External Intersegment Total External Intersegment Total

Manufacturing $ 341,939 $ 7,451 $ 349,390 $ 31,341 $ 492 $ 31,833

Wheels, Repair & Parts 80,871 2,292 83,163 4,173 75 4,248

Leasing & Services 27,333 2,286 29,619 12,280 2,272 14,552

Eliminations - (12,029) (12,029) - (2,839) (2,839)

Corporate - - - (22,085) - (22,085)

$ 450,143 $ - $ 450,143 $ 25,709 $ - $ 25,709

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

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

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

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

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

Total assets

May 31, February 28, 2021 2021

Manufacturing $ 1,413,590 $ 1,313,819

Wheels, Repair & Parts 265,847 277,788

Leasing & Services 878,743 851,546

Unallocated, including cash 651,987 616,212

$ 3,210,167 $ 3,059,365

THE GREENBRIER COMPANIES, INC.

Supplemental Information

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

Reconciliation of Net earnings (loss) to Adjusted EBITDA

Three Months Ended

May 31, February 28,

2021 2021

Net earnings (loss) $ $ (13,921) 20,035

Interest and foreign 10,204 9,568exchange

Income tax benefit (6,914) (21,752)

Depreciation and 24,769 24,822amortization

Net loss on extinguishment 4,763 -of debt

Adjusted EBITDA $ 52,857 $ (1,283)

Reconciliation of Net earnings (loss) attributable to Greenbrier to Adjustednet earnings (loss) attributable to Greenbrier

Three Months Ended

May 31, February 28, 2021 2021

$ $ Net earnings (loss) attributable to Greenbrier 19,737 (9,065)

Net loss on extinguishment of debt, net of tax ^(1) 3,596 -

Adjusted net earnings (loss) attributable to $ $ Greenbrier 23,333 (9,065)

^(1) Net of tax of $1,167

Reconciliation of Diluted earnings (loss) per share to Adjusted dilutedearnings (loss) per share

Three Months Ended

May 31, February 28, 2021 2021

Diluted earnings (loss) per share $ $ 0.59 (0.28)

Net loss on extinguishment of debt, 0.10 -net of tax

Adjusted diluted earnings (loss) $ $ per share 0.69 (0.28)

33,605 32,810Weighted average shares outstanding

"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," "allow," "anticipate," "continue," "estimate" "expect," "goal," "intend," "maintain," "outlook," "position," "prepare," "reduce," "will," and similar expressions to identify forward-looking statements. These forward-looking statements include, without limitation, statements about backlog, leasing performance, financing, 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 sections titled "Third Quarter Highlights," "Business Update & Outlook" and "Supplemental Leasing Information." 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, variants thereof, and governmental reaction thereto, 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. We may not be able to effectively participate in the economic recovery following the pandemic, if any. 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 reports 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 Greenbrier Companies, Inc.