PR Newswire | Oct 26, 2021 06:01AM EDT

10/26 05:00 CDT

Greenbrier Reports Fourth Quarter and Fiscal Year ResultsGreenbrier Board designates next CEO and sets transition timelineOrders for 6,700 new railcars valued at $665 million - book-to-bill of 1.5x in the quarterGenerated over $80 million of operating cash flow in the quarter LAKE OSWEGO, Ore., Oct. 26, 2021

LAKE OSWEGO, Ore., Oct. 26, 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 fourth fiscal quarter and year ended August 31, 2021.

Today, Greenbrier separately announced the appointment of Lorie Tekorius as the Company's next CEO and President, effective March 1, 2022. Bill Furman will step into the newly created position of Executive Chair on the same date, and as earlier announced, will retire in September 2022, while remaining a member of the Board of Directors into 2024.

Fourth Quarter Highlights

* New railcar orders for 6,700 units valued at $665 million and deliveries of 4,500 units, resulted in a 1.5x book-to-bill, the third consecutive quarter with a book-to-bill over 1.0x. * Diversified new railcar backlog as of August 31, 2021 was 26,600 units with an estimated value of $2.8 billion. * Ended the quarter with liquidity of $835 million, including $647 million in cash and $188 million of available borrowing capacity. * Operating cash flow exceeded $80 million. * Net earnings attributable to Greenbrier for the quarter were $32 million, or $0.95 per diluted share, on revenue of nearly $600 million. Net earnings included $1.2 million ($0.03 per share), of loss on extinguishment of debt, net of tax. * Adjusted net earnings attributable to Greenbrier were $33 million, or $0.98 per diluted share, and EBITDA for the quarter was $70 million. * Contributed nearly $70 million of assets into GBX Leasing. GBX Leasing is funded with a combination of equity and non-recourse debt. It is consolidated in Greenbrier's financial statements; see supplemental information in this release. * Board declares a quarterly dividend of $0.27 per share, payable on December 2, 2021 to shareholders of record as of November 11, 2021 representing Greenbrier's 30th consecutive quarterly dividend.

Fiscal Year 2021 Highlights

* Diversified new railcar orders of 17,200 units valued at $1.8 billion and deliveries of 13,000 units resulted in 1.3x book-to-bill. * COVID-19 related expenses for the year totaled nearly $10 million (pre-tax). * Net earnings attributable to Greenbrier for the year were $32 million, or $0.96 per diluted share, on revenue of $1.7 billion. Net earnings included $5 million ($0.14 per share), of loss on extinguishment of debt, net of tax, associated with refinancing of the Company's debt. * Completed nearly $1.5 billion of debt refinancing effectively doubling the maturity profile of Greenbrier's debt. * Adjusted net earnings attributable to Greenbrier were $37 million, or $1.10 per diluted share, excluding the loss on extinguishment of debt. * GBX Leasing was formed in April 2021 to create stable, tax-advantaged cash flows. Nearly $200 million of railcars were contributed in fiscal 2021 which were levered 3:1 utilizing a $300 million non-recourse warehouse credit facility secured at formation. Subsequent to year end, Greenbrier acquired a portfolio of 3,600 railcars, accelerating its enhanced railcar leasing strategy. * Under a provision of the CARES Act, Greenbrier invested in our lease fleets which created net operating losses for tax purposes that were carried back to prior years with higher federal tax rates. This activity resulted in tax benefits that generated $1.09 per diluted share of earnings over the course of fiscal 2021. * EBITDA was $145 million, or 8.3% of revenue.

William A. Furman, Chairman & CEO commented, "Greenbrier continued to build momentum during our fourth fiscal quarter as the recovery in the North American railcar market progresses. We achieved our fifth sequential quarterly increase in new orders during the quarter with new orders totaling 6,700 units valued at $665 million. Greenbrier also completed a comprehensive $1.5 billion refinancing plan that extended maturities into 2026 and beyond. Combined with the $300 million GBX Leasing warehouse credit facility, Greenbrier completed $1.8 billion of financings in fiscal 2021. Our strong financial position and $2.8 billion backlog supports Greenbrier's proven ability to adjust production capacity in response to growing demand. It also uniquely positions Greenbrier to participate meaningfully in the post-pandemic recovery. Momentum continues to build in our international markets with approximately 30% of our backlog for delivery in Europe and Brazil."

Furman added, "Our strategic focus remains unchanged as we enter fiscal 2022, particularly given challenges brought about by inflationary pressures, labor shortages and supply chain issues. The market recovery will not be linear, and for this reason, we are pleased to have recently increased the scale of our lease fleet through our GBX Leasing joint venture. Our lease fleet investment provides Greenbrier tax-advantaged cash flows and reduces our exposure to the inherent cyclicality of freight transportation equipment manufacturing. All factors considered, Greenbrier is extremely well-positioned to continue to grow and deliver value to our shareholders."

Business Update & Outlook

Greenbrier's strategy during the fourth fiscal quarter produced strong operating performance while balancing economic and labor volatility. Since March 2020, Greenbrier has practiced disciplined management to meet the challenges created by the COVID-19 pandemic. Greenbrier's near-term strategic focus continues to be:

* Maintain a strong liquidity base and balance sheet. * Navigate the COVID-19 pandemic and economic crisis by safely operating our factories while generating cash. * Prepare for economic recovery and forward momentum in our markets. Greenbrier is well-positioned to navigate the challenges of increasing production rates safely, while ensuring labor and supply chain continuity. Based on current trends and production schedules, Greenbrier expects:

* Deliveries will be 16,000 - 18,000 units including approximately 1,500 units in Greenbrier-Maxion (Brazil). * Selling & administrative expense to be $200 - $210 million. * Capital expenditures will consist of $275 million in Leasing & Service, $55 million in Manufacturing and $10 million in Wheels, Repair & Parts.

We will provide additional operating color during the earnings call.

Financial Summary

Q4 FY21Q3 FY21Sequential Comparison - Main Drivers

Revenue $599.2M$450.1M46% higher deliveries reflecting increased production levels and syndication activity

Strong operating performance reflects increased production rates and syndication Gross margin 16.4% 16.7% activity in Manufacturing, and lease modification fees while the prior quarter benefited from favorable international warranty resolution

Selling and $55.4M $49.2M Increased employee-related costs including administrative performance-based compensation expense

Higher operating earnings reflecting EBITDA $70.4M $52.9M increased deliveries; See reconciliation on page 12

Net earnings attributable to($3.9M)($0.3M)Increased operating activity at GIMSA joint noncontrolling venture interest

Adjusted net earnings $32.9M^$23.3M^Primarily from increased deliveries and tax attributable to(1) (2) benefit from the CARES Act Greenbrier

Adjusted $0.98^ $0.69^ diluted EPS (1) (2)

(1) Excludes $1.2 million ($0.03 per share), net of tax, of loss on debt extinguishment.

(2) Excludes $3.6 million ($0.10 per share), net of tax, of loss on debt extinguishment.

Segment Summary

Q4 FY21Q3 FY21Sequential Comparison - Main Drivers

Manufacturing

Revenue $477.2M$341.9MHigher deliveries including increased syndication activity

Gross Strong operating performance and increased margin 13.2% 14.5% syndication activity while prior quarter benefited from a favorable warranty resolution

Operating9.1% 9.2% margin ^(1)

Higher production rates and increased syndicationDeliveries 4,100 2,800 activity ^(2)

Wheels, Repair & Parts

Revenue $80.3M $80.9M Lower volumes partially offset by higher scrap revenue

Gross 4.0% 8.9% Repair operations negatively impacted by labor margin shortages and inventory adjustments

Operating0.1% 5.2% margin^ (1)

Leasing & Services (including GBX Leasing)

Revenue $41.7M $27.3M Gross 76.2% 67.6% margin Revenue and margin reflect higher interim rent and the benefit of lease modification fees Operating margin^ (1)61.0% 44.9% (3)

Fleet 94.1% 93.8% utilization

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

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

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

Conference Call

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

* October 26, 2021 * 8:00 a.m. Pacific Daylight Time * Phone: 1-888-317-6003 (Toll Free) 1-412-317-6061 (International), Entry Number "1560183" * 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, maintenance and retrofitting services in North America through our rail services business unit. Greenbrier manages 444,000 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. As of September 30, 2021, GBXL and Greenbrier own a lease fleet of nearly 12,500 railcars. Learn more about Greenbrier at www.gbrx.com.

THE GREENBRIER COMPANIES, INC.

Consolidated Balance Sheets

(In thousands, unaudited)

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

Assets

Cash and cash $ 646,769 $ 628,200 $ 593,499 $ 724,547 $ 833,745equivalents

Restricted cash 24,627 8,689 8,614 8,547 8,342

Accounts receivable, 306,407 274,792 236,171 216,220 230,488net

Income tax 112,135 75,135 62,103 24,448 9,109receivable

Inventories 573,594 553,137 522,984 490,282 529,529

Leased railcars for 51,647 154,017 109,287 51,087 107,671syndication

Equipment on 609,812 446,888 445,451 445,542 350,442operating leases, net

Property, plant and 670,221 676,010 687,468 696,333 711,524equipment, net

Investment inunconsolidated 79,898 79,420 70,820 72,254 72,354affiliates

Intangibles and 183,448 180,829 190,283 186,509 190,322other assets, net

Goodwill 132,110 133,050 132,685 130,315 130,308

$ 3,390,668 $ 3,210,167 $ 3,059,365 $ 3,046,084 $ 3,173,834

Liabilities and Equity

Revolving notes $ 372,176 $ 325,150 $ 275,839 $ 276,248 $ 351,526

Accounts payable and 569,805 480,373 448,571 434,138 463,880accrued liabilities

Deferred income 73,249 44,900 24,798 10,120 7,701taxes

Deferred revenue 42,797 43,676 42,572 36,916 42,467

Notes payable, net 826,506 835,027 793,189 797,089 804,088

Contingently redeemable 29,708 30,323 30,037 30,711 31,117noncontrolling interest

Total equity - 1,307,748 1,286,763 1,268,502 1,280,407 1,293,043Greenbrier

Noncontrolling 168,679 163,955 175,857 180,455 180,012interest

Total equity 1,476,427 1,450,718 1,444,359 1,460,862 1,473,055

$ 3,390,668 $ 3,210,167 $ 3,059,365 $ 3,046,084 $ 3,173,834

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Income

(In thousands, except per share amounts, unaudited)

Years Ended

August 31,

2021 2020 2019

Revenue

$ 1,329,987 $ 2,349,971 $ 2,431,499Manufacturing

Wheels, Repair 298,330 324,670 444,502& Parts

Leasing & 119,664 117,548 157,590Services

1,747,981 2,792,189 3,033,591

Cost ofrevenue

1,189,246 2,065,169 2,137,625Manufacturing

Wheels, Repair 280,391 302,189 420,890& Parts

Leasing & 46,737 71,700 108,590Services

1,516,374 2,439,058 2,667,105

Margin 231,607 353,131 366,486

Selling andadministrative 191,813 204,706 213,308expense

Net gain ondisposition of (1,176) (20,004) (40,963)equipment

Goodwill - - 10,025impairment

Earnings from 40,970 168,429 184,116operations

Other costs

Interest andforeign 43,263 43,619 30,912exchange

Net loss onextinguishment 6,287 - -of debt

Earnings(loss) beforeincome tax andearnings (8,580) 124,810 153,204(loss) fromunconsolidatedaffiliates

Income taxbenefit 40,223 (40,184) (41,588)(expense)

Earningsbeforeearnings(loss) from 31,643 84,626 111,616

unconsolidatedaffiliates

Earnings(loss) from 3,491 2,960 (5,805)unconsolidatedaffiliates

Net earnings 35,134 87,586 105,811

Net earningsattributableto (2,657) (38,619) (34,735)noncontrollinginterest

Net earningsattributable $ 32,477 $ 48,967 $ 71,076to Greenbrier

Basic earningsper common $ 0.99 $ 1.50 $ 2.18share:

Dilutedearnings per $ 0.96 $ 1.46 $ 2.14common share:

Weightedaverage commonshares:

Basic 32,648 32,670 32,615

Diluted 33,665 33,441 33,165

Dividends per $ 1.08 $ 1.06 $ 1.00common share

THE GREENBRIER COMPANIES, INC.

Consolidated Statements of Cash Flows

(In thousands, unaudited)

Years Ended August 31,

Cash flows from operating 2021 2020 2019activities

Net earnings $ 35,134 $ 87,586 $ 105,811

Adjustments to reconcile netearnings to net cash providedby (used in) operatingactivities:

Deferred income taxes 51,100 (9,489) (20,225)

Depreciation and 100,717 109,850 83,731amortization

Net gain on disposition (1,176) (20,004) (40,963)of equipment

Accretion of debt 7,075 5,504 4,458discount

Stock based 14,704 8,997 11,153compensation expense

Net loss on 6,287 - -extinguishment of debt

Noncontrolling interest 2,259 1,436 7,402adjustments

Goodwill impairment - - 10,025

Other 2,363 1,142 145

Decrease (increase) inassets:

Accounts (82,117) 144,435 13,022receivable, net

Income tax (103,026) (9,109) -receivable

Inventories (166,488) 166,607 (143,168)

Leased railcars for (11,904) (12,942) (96,110)syndication

Other assets (5,813) (64,995) 6,843

Increase (decrease) inliabilities:

Accounts payable 109,922 (108,837) 55,910and accrued liabilities

Deferred revenue 438 (27,920) (19,275)

Net cash provided by(used in) operating (40,525) 272,261 (21,241)activities

Cash flows from investingactivities

Acquisitions, net of cash - - (361,878)acquired

Proceeds from sales of 15,927 83,484 125,427assets

Capital expenditures (139,011) (66,879) (198,233)

Investments in andadvances to unconsolidated (26) (1,815) (11,393)affiliates

Cash distribution fromunconsolidated affiliates and 5,350 12,693 2,096other

Net cash provided by(used in) investing (117,760) 27,483 (443,981)activities

Cash flows from financingactivities

Net change in revolvingnotes with maturities of 90 197,382 146,542 (105)days or less

Proceeds from revolvingnotes with maturities longer 112,000 176,500 -than 90 days

Repayments of revolvingnotes with maturities long (287,000) - -than 90 days

Proceeds from issuance of 391,890 - 525,000notes payable

Repayments of notes (337,754) (30,179) (182,971)payable

Debt issuance costs (21,997) - (8,630)

Repurchase of stock (20,000) - -

Dividends (35,663) (35,173) (33,193)

Cash distribution to joint (25,292) (38,969) (16,879)venture partner

Investment by joint 7,000 - -venture partner

Tax payments for net sharesettlement of restricted (3,308) (2,266) (6,321)stock

Net cash provided by (used (22,742) 216,455 276,901in) financing activities

Effect of exchange rate 10,336 (12,599) (12,666)changes

Increase (decrease) incash, cash equivalents and (170,691) 503,600 (200,987)restricted cash

Cash and cash equivalents andrestricted cash

Beginning of period 842,087 338,487 539,474

End of period $ 671,396 $ 842,087 $ 338,487

Balance Sheet Reconciliation:

Cash and cash equivalents $ 646,769 $ 833,745 $ 329,684

Restricted cash 24,627 8,342 8,803

Total cash and cashequivalents and restricted $ 671,396 $ 842,087 $ 338,487cash

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 95% of GBXL and consolidates it in Greenbrier's financial statements in the Leasing & Services segment. GBXL provides 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. GBX Leasing will observe Greenbrier's established portfolio standards including investing in strong credits with a diverse equipment mix and staggered maturity ladders.

During fiscal 2021, $197 million in fair market value of assets were acquired from Greenbrier's transaction flow and $147 million was drawn on the $300 million non-recourse railcar credit facility. Subsequent to year end, Greenbrier acquired a portfolio of 3,600 railcars, a portion of which will be held in GBX Leasing. Combined with Greenbrier built cars from lease originations, GBX Leasing's portfolio's value is $350 million as of September 30. 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. Reflecting the strong momentum achieved since inception, GBX Leasing expects to use the asset-backed securities market to refinance the warehouse facility and to convert to long term financing in fiscal 2022. Investing in leasing assets reduces Greenbrier's Manufacturing revenue and margin in the short-term but provides considerable tax benefits and longer-term earnings and cash flow stability.

Key information for the consolidated Leasing & Services segment

August 31, May 31, (In Units) 2021 2021

Owned fleet^(1) 8,800 8,700

Managed fleet 444,000 445,000

Owned fleet utilization^(1) 94% 94%

August 31, May 31, 2021 2021

Equipment on operating lease^(2)$ $ 609,812 446,888



GBX Leasing non-recourse $ $ warehouse 146,985 96,576

Leasing non-recourse term loan 200,000 202,815

Total Leasing non-recourse debt $ $ 346,985 299,391



Fleet leverage %^(3) 57% 67%

(1) Owned fleet includes Leased railcars for syndication

(2) Equipment on operating lease assets not securing Leasing non-recourse term loan support the $600 million U.S. revolver

(3) 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 Fourth Total

Revenue

Manufacturing $ 308,722 $ 202,094 $ 341,939 $ 477,232 $ 1,329,987

Wheels, 65,556 71,623 80,871 80,280 298,330Repair & Parts

Leasing & 28,711 21,905 27,333 41,715 119,664Services

402,989 295,622 450,143 599,227 1,747,981

Cost of revenue

Manufacturing 280,890 201,771 292,464 414,121 1,189,246

Wheels, 62,984 66,667 73,690 77,050 280,391Repair & Parts

Leasing & 18,444 9,513 8,857 9,923 46,737Services

362,318 277,951 375,011 501,094 1,516,374

Margin 40,671 17,671 75,132 98,133 231,607

Selling andadministrative 43,707 43,425 49,239 55,442 191,813expense

Net (gain) losson disposition (922) (27) 184 (411) (1,176)of equipment

Earnings (loss) (2,114) (25,727) 25,709 43,102 40,970from operations

Other costs

Interest and 11,103 9,568 10,204 12,388 43,263foreign exchange

Net loss onextinguishment - - 4,763 1,524 6,287of debt

Earnings (loss)before incometax and earnings (13,217) (35,295) 10,742 29,190 (8,580)(loss) fromunconsolidatedaffiliates

Income tax 7,332 21,752 6,914 4,225 40,223benefit

Earnings (loss)before earnings(loss) from (5,885) (13,543) 17,656 33,415 31,643unconsolidatedaffiliates

Earnings (loss)from (744) (378) 2,379 2,234 3,491unconsolidatedaffiliates

Net earnings (6,629) (13,921) 20,035 35,649 35,134(loss)

Net (earnings)lossattributable to (3,343) 4,856 (298) (3,872) (2,657) noncontrollinginterest

Net earnings(loss) $ (9,972) $ (9,065) $ 19,737 $ 31,777 $ 32,477attributable toGreenbrier

Basic earnings(loss) per $ (0.30) $ (0.28) $ 0.61 $ 0.98 $ 0.99common share ^(1)

Diluted earnings(loss) per $ (0.30) $ (0.28) $ 0.59 $ 0.95 $ 0.96common share ^(1)

Dividends per $ 0.27 $ 0.27 $ 0.27 $ 0.27 $ 1.08common share

^(1) Quarterly amounts may not total to the year to date amount as eachperiod 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)noncontrolling interest

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 eachperiod is calculated discretely.

THE GREENBRIER COMPANIES, INC.

Supplemental Information

(In thousands, unaudited)

Segment Information

Three months ended August 31, 2021:

Revenue Earnings (loss) from operations

External Intersegment Total External Intersegment Total

Manufacturing $ 477,232 $ 61,957 $ 539,189 $ 43,313 $ 3,802 $ 47,115

Wheels, Repair & Parts 80,280 4,922 85,202 46 51 97

Leasing & Services 41,715 11,883 53,598 25,431 11,817 37,248

Eliminations - (78,762) (78,762) - (15,670) (15,670)

Corporate - - - (25,688) - (25,688)

$ 599,227 $ - $ 599,227 $ 43,102 $ - $ 43,102

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

Total assets

August 31, May 31, 2021 2021

Manufacturing $ 1,493,467 $ 1,413,590

Wheels, Repair & Parts 260,904 265,847

Leasing & Services 949,380 878,743

Unallocated, including cash 686,917 651,987

$ 3,390,668 $ 3,210,167

Supplemental Backlog and Delivery Information

(Unaudited)

Three Months Ended Year Ended

August 31, 2021 August 31, 2021

Backlog Activity (units) ^(1)

Beginning backlog 24,800 24,600

Orders received 6,700 17,200

Production held on the Balance Sheet (1,400) (3,700)

Production sold directly to third parties (3,500) (11,500)

Ending backlog 26,600 26,600

Delivery Information (units) ^(1)

Production sold directly to third parties 3,500 11,500

Sales of Leased railcars for syndication 1,000 1,500

Total deliveries 4,500 13,000

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

THE GREENBRIER COMPANIES, INC.

Supplemental Information

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

Reconciliation of Net earnings to EBITDA

Three Months Ended Year Ended

August 31, May 31, August 31, 2021 2021 2021

Net earnings $ 35,649 $ 20,035 $ 35,134

Interest and foreign exchange 12,388 10,204 43,263

Income tax benefit (4,225) (6,914) (40,223)

Depreciation and amortization 25,080 24,769 100,717

Net loss on extinguishment of debt 1,524 4,763 6,287

EBITDA $ 70,416 $ 52,857 $ 145,178

Reconciliation of Net earnings attributable to Greenbrier to Adjusted netearnings attributable to Greenbrier

Three Months Ended Year Ended

August 31, May 31, August 31, 2021 2021 2021

Net earnings attributable to Greenbrier $ 31,777 $ 19,737 $ 32,477

Net loss on extinguishment of debt, net of tax 1,151 ^(1) 3,596 ^(2) 4,747

Adjusted net earnings attributable to Greenbrier $ 32,928 $ 23,333 $ 37,224

^(1) Net of tax of $373

^(2) Net of tax of $1,167

Reconciliation of Diluted earnings per share to Adjusted diluted earnings pershare

Three Months Ended Year Ended

August 31, May 31, August 31, 2021 2021 2021

Diluted earnings per share $ 0.95 $ 0.59 $ 0.96

Net loss on extinguishment of debt, net of tax 0.03 0.10 0.14 ^(1)

Adjusted diluted earnings per share $ 0.98 $ 0.69 $ 1.10

33,420 33,605 33,665Diluted weighted average shares outstanding

^(1) May not sum due to rounding

"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," "believe", "continue," "expect," "goal," "maintain," "outlook," "position," "reduce," "will," and similar expressions to identify forward-looking statements. These forward-looking statements include, without limitation, statements about backlog, leasing performance, financing, future liquidity, cash flow, our ability to grow market share and deliver future value to our shareholders and other information regarding future performance and strategies and appear throughout this press release including in the headlines and the sections titled "Fourth Quarter Highlights," "Fiscal Year 2021 Highlights" and "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: We are unable to predict when, how, or with what magnitude COVID-19, variants thereof, and governmental reaction thereto, and related economic disruptions (including, among other factors, supply disruptions and sectoral inflation) will negatively impact our business 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. 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

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 EBITDA as Net earnings (loss) before Interest and foreign exchange, Income tax benefit (expense), Depreciation and amortization and Net loss on extinguishment of debt. We believe the presentation of 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.