Courtesy of Benzinga.
The Greenbrier Companies (NYSE: GBX) today reported results for its fiscal second quarter ended February 29, 2012.
Second Quarter Highlights
Revenues for the second quarter of 2012 were $458.2 million, up over 60% from $284.3 million in the prior year’s second quarter. Adjusted EBITDA for the quarter was $40.1 million, or 8.7% of revenue, compared to $19.4 million, or 6.8% of revenue in the second quarter of 2011. Net earnings attributable to Greenbrier (“net earnings”) for the quarter were $17.7 million, or $.57 per diluted share, compared to a net loss of $550,000, or $.02 per diluted share, in the same period last year. New railcar deliveries in the second quarter of 2012 were 3,700 units, compared to 2,200 units in the second quarter of 2011. During the second quarter of 2012, the Company received orders for 3,600 new railcars, over double the 1,600 orders received in the first quarter. Subsequent to quarter end, orders were received for 2,300 additional units valued at $270 million. Greenbrier’s new railcar manufacturing backlog as of February 29, 2012 was 12,500 units with an estimated value of $1.1 billion, compared to 13,300 units with an estimated value of $1.1 billion as of November 30, 2011. Discussion of Quarterly Results and Outlook
William A. Furman, President and Chief Executive Officer, said, “Our strong quarterly results were driven by revenue and margin growth in all of our business segments, as compared to both the second quarter of fiscal 2011 and the first quarter of fiscal 2012. We expect to continue to benefit from efficiencies of operating at higher volumes.”
Furman continued, “Manufacturing orders increased during the second quarter and remained robust during the first part of our current quarter. As a result of momentum across multiple railcar types, we continue to diversify our product mix. We remain optimistic that we are in the early phases of a broad-based recovery in the rail markets we serve.”
Segment Details
The Manufacturing segment consists of marine and new railcar production in Europe and North America. Manufacturing segment revenue for the second quarter was $320.2 million, compared to $156.6 million in the second fiscal quarter of 2011. This revenue increase was primarily due to increased new railcar demand which drove higher railcar deliveries. Current quarter deliveries totaled 3,700 units, compared to 2,200 units in the prior comparable period, as the Company added production lines and increased production rates on existing lines. Manufacturing gross margin for the second quarter was 9.2% of revenue, compared to 5.8% in the second quarter of 2011. The increase in margin is attributable to efficiencies gained by operating at higher production rates and more favorable customer pricing in the current period. As well, there were inefficiencies in the prior year associated with the ramping up of production at some of our facilities that were previously idle.
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