The Greenbrier panies(GBX) - 2024 Q3 - Quarterly Results

Financial Performance - Diluted EPS reached $1.06, the highest level in over 4.5 years, with net earnings of $34 million on revenue of $820 million[2] - EBITDA for the quarter was $104 million, representing 13% of revenue and the highest level in over 4.5 years[2] - Net earnings for the three months ended May 31, 2024, were $40.6 million, compared to $33.6 million for the previous period[30] - Net earnings for the nine months ended May 31, 2024, increased to $107.4 million, compared to $46.2 million for the same period in 2023, representing a 132.3% increase[16] - Basic earnings per common share for the three months ended May 31, 2024, were $1.09, compared to $0.67 for the same period in 2023[14] - The company reported a net cash provided by operating activities of $138.4 million for the nine months ended May 31, 2024, significantly up from $1.2 million in the prior year[16] - The company declared a quarterly dividend of $0.30 per share, marking its 41st consecutive quarterly dividend[2] - Dividends per common share increased to $0.30 for the three months ended May 31, 2024, compared to $0.27 for the same period in 2023[14] Revenue and Orders - Total revenue for the third quarter was $820.2 million, with manufacturing revenue at $685.1 million, maintenance services at $69.9 million, and leasing & management services at $65.2 million[22] - New railcar orders totaled 6,300 units valued at $830 million, contributing to a backlog of 29,400 units worth an estimated $3.7 billion[2] - The ending backlog increased to 29,400 units, up from a beginning backlog of 29,200 units, with orders received totaling 6,300 units during the three months ended May 31, 2024[28] - Total deliveries for the period were 5,400 units, which included 3,700 direct sales and 1,700 leased railcars sold for syndication[28] - Revenue from Leasing & Management Services increased to $65.2 million, driven by increased syndication activity[7] Operational Efficiency - Gross margin improved to 15.1%, up from 14.2% in the previous quarter, driven by better operating performance in Manufacturing and Maintenance Services[5] - Operating cash flow generated was $84 million, reflecting strong operational efficiency[2] - Earnings from operations for the third quarter were $72.3 million, with selling and administrative expenses totaling $59.3 million[22] Leasing and Fleet Growth - The lease fleet grew by 600 units to 15,200 units, with a fleet utilization rate of nearly 99%[1] - Greenbrier's leasing strategy aims to double recurring revenue from leasing and management fees by investing up to $300 million net annually over the next five years[18] - The Greenbrier lease fleet increased to 15,200 units as of May 31, 2024, up from 14,600 units at the end of February 2024[19] - Equipment on operating lease increased to $1,226.9 million as of May 31, 2024, compared to $1,160.5 million at the end of February 2024[19] Financial Position - The total cash and cash equivalents and restricted cash at the end of the period was $291.8 million, down from $341.5 million at the end of the previous year[16] - Total assets as of May 31, 2024, were $4,115.8 million, compared to $4,043.6 million as of February 29, 2024[27] - Total consolidated debt as of May 31, 2024, was $1,762.3 million, up from $1,722.6 million as of February 29, 2024[31] - The company reported a total leasing non-recourse debt of $944.9 million as of May 31, 2024, up from $895.2 million at the end of February 2024[19] Future Outlook - Greenbrier updated its fiscal 2024 guidance, projecting revenue between $3.5 billion and $3.6 billion and deliveries of 23,500 to 24,000 units[4] - Capital expenditures are expected to be approximately $150 million in Manufacturing and $15 million in Maintenance Services[4] - Greenbrier's management remains optimistic about future orders and backlog, although they caution that not all orders are guaranteed[32] Risks and Considerations - The company highlighted potential risks including economic downturns, inflation, and supply chain disruptions that could impact future performance[32] - Greenbrier emphasizes that EBITDA is not a GAAP measure and should not be considered in isolation from other financial metrics[33] - The company defines EBITDA as net earnings before interest, foreign exchange, income tax expense, and depreciation and amortization, providing a clearer view of operational performance[34]