The Greenbrier Companies, Inc. has reported financial results for its fourth fiscal quarter and full year ending August 31, 2016, with net earnings for the quarter at $33.6 million, or $1.06 per diluted share. Revenue for the quarter was $595.2 million. Adjusted EBITDA for the quarter was $104.4 million, or 17.5 percent of revenue.
“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,” said Greenbrier Chairman and CEO William A. Furman. “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,” added Furman. “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."
As of August 31, 2016, Greenbrier’s railcar backlog was 27,500 units with an estimated value of $3.19 billion (average unit sale price of $116,000). The backlog reflects a 1,200 unit reduction resulting from customer settlements.
During the fourth fiscal quarter, Greenbrier received orders for 2,300 new railcars with a value of more than $200 million, or an average price of approximately $87,000 per railcar. New railcar deliveries for the quarter totaled 4,600 units, compared to 4,300 units for the quarter ending May 31, 2016.
"Entering fiscal 2017, our diversified backlog provides us with strong visibility, while we remain adaptable and prepared for market recovery and growth,” continued Furman. “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.”
For the full fiscal year, Greenbrier reported net earnings of $183.2 million, or $5.73 per diluted share, on a record revenue of $2.68 billion and adjusted EBITDA was a record $474 million or 17.7 percent of revenue. New railcar deliveries totaled 20,300 units, and orders totaled 7,500 units valued at $700 million across a broad range of railcar types.
“In the year ahead, a moderating railcar replacement cycle in North America will favorably position well-capitalized companies like Greenbrier to seize opportunities in the market, which often emerge suddenly,” concluded Furman. “We remain committed to our overall strategy of investing for future growth and generating long-term value for our shareholders with an emphasis on solid ROIC.”
Greenbrier believes that, based on current business trends, industry forecasts and production schedules, 2017 revenue will be $2 to $2.4 billion, diluted EPS will be in the range of $3.25 to $3.75, and deliveries will be approximately 14,000 to 16,000 units.