Greenbrier on Oct. 25 reported results for its fourth quarter and fiscal year ending Aug. 31, 2016, as well as orders for 2,300 railcars valued at $200 million.
Greenbrier reported these Fourth Quarter Highlights:
* Net earnings attributable to Greenbrier for the quarter were $33.6 million, or $1.06 per diluted share, on revenue of $595.2 million.
* Adjusted EBITDA for the quarter was $104.4 million, or 17.5% of revenue.
* Diversified orders for 2,300 new railcars were received during this quarter, valued at over $200 million, or an average price of approximately $87,000 per railcar.
* New railcar backlog as of August 31, 2016 was 27,500 units with an estimated value of $3.19 billion (average unit sale price of $116,000). Backlog reflects a 1,200 unit reduction resulting from customer settlements that yield favorable economic and other considerations.
* New railcar deliveries totaled 4,600 units for the quarter, compared to 4,300 units for the quarter ended May 31, 2016.
*Marine backlog as of August 31, 2016 was approximately $114 million.
* Board declared a quarterly dividend of $0.21 per share, payable on December 1, 2016 to shareholders as of November 10, 2016.
Greenbrier also reported Fiscal Year 2016 Highlights:
* Net earnings were $183.2 million, or $5.73 per diluted share, on record revenue of $2.68 billion.
* Record Adjusted EBITDA was $474.0 million, or 17.7% of revenue, compared to 16.7% of revenue in fiscal 2015.
* New railcar deliveries totaled 20,300 units.
* Orders totaled 7,500 units valued over $700 million across a broad range of railcar types.
* Cash provided by operating activities increased 72% to over $330 million.
* Net Funded Debt : LTM EBITDA ratio improved to 0.2x from 0.5x in fiscal 2015.
* Nearly $57 million returned to shareholders through dividend and share repurchases.
Greenbrier further outlined progress on longer term financial goals:
* Fourth quarter aggregate gross margin, was 20.1%, consistent with our goal of at least 20% gross margin by the second half of fiscal 2016.
* We achieved an ROIC of 24.8% in fiscal 2016, in line with our target of 25.0%, and an improvement from the 23.7% achieved in fiscal 2015. William A. Furman, Chairman and CEO, said, “We delivered strong results for the fourth quarter and fiscal 2016. We ended the year with a strong balance sheet, ample liquidity and very little net debt. This positions Greenbrier to continue to invest internationally in high ROIC markets, as well as successfully navigate through less robust North American market conditions. We addressed industry challenges during fiscal 2016 as we encountered a weaker market in North America. Our employees successfully executed our plan for the year. We appreciate their hard work along with the confidence and trust of our customers as we have diversified and grown internationally.”
Furman continued, “Entering fiscal 2017, our diversified backlog provides us with strong visibility, while we remain adaptable and prepared for market recovery and growth. Recently, we worked with customers to resolve commercial terms related to 1,200 sand cars. Under these arrangements, Greenbrier received meaningful monetary and other valuable economic consideration. Our deep customer relationships are advantageous in the current market conditions as we work to achieve mutually beneficial solutions.”