Net earnings for the quarter were $32.8 million, or $1.01 per diluted share, on revenue of $495 million. Adjusted EBITDA for the quarter was $67.2 million, or 13.6% of revenue. The railcar backlog as of Nov. 30, 2014 was 41,200 units with an estimated value of $4.20 billion (average unit sale price of $102,000), compared to 31,500 units with an estimated value of $3.33 billion (average unit sale price of $106,000) as of Aug. 31, 2014. Orders for 14,100 new railcars valued at $1.24 billion were received during the quarter. After the quarter’s end, Greenbrier received orders for an additional 3,500 units valued at approximately $400 million.
New railcar deliveries totaled 4,000 units for the quarter, compared to 4,800 units for the quarter ended August 31, 2014. The company’s aggregate gross margin expanded to 17.8%, compared to 17.2% in the fourth quarter of fiscal 2014, moving closer to the goal of at least 20% gross margin by the second half of fiscal 2016. “We remain on track to the goal of at least 25% ROIC by the second half of fiscal 2016,” the company said. “First-quarter annualized ROIC of 11.1% is the result of working capital needs associated with higher production and syndication volumes, and planned capital expenditure programs. Our pursuit of new markets continues, including an equity investment in Brazil’s Amsted-Maxion Hortolândia, the leading railcar manufacturer in South America.”
“Our integrated business model continues to serve the wide-ranging transportation needs of our customers with each of our business units delivering enhanced performance beyond our own high expectations this quarter,” said Chairman and CEO William A. Furman. “Our strategy to diversify our product mix, add efficient, flexible capacity in low-cost facilities, and drive considerably more product through our leasing model is paying off with manufacturing and leasing continuing to lead the way. Our business has never been stronger, with continued robust earnings, a growing and diverse backlog and significantly increased earnings expectations for 2015.
“Since the beginning of our fiscal year on Sept. 1, 2014, we have received diverse orders for 17,600 new railcar units in North America and Europe, of which nearly 70% are for doublestack intermodal units, automobile carrying cars, and covered hopper cars. The quantity and value of our backlog increased for the fifth consecutive quarter, and is more than triple the size of just one year ago. This backlog is significantly more diverse as well, with over 10 different car types in North America alone. Today, tank cars comprise a little over one-fourth of our backlog compared to close to 50% a year ago, and close to 40% at the end of our last quarter.
“The leading indicator for our business is the condition of the U.S. economy, not energy prices. Macro-economic conditions indicate strength and expansion for the U.S. economy in 2015 and beyond, with lower energy prices creating a strong impetus for auto production, consumer spending and overall growth. We are also making investments toward the future, which includes our an equity investment in Brazil-based Amsted-Maxion Hortolândia, the leading manufacturer of railcars in South America.”