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The Greenbrier Companies Inc. Reports Operating Results (10-Q)

January 07, 2011 | About:

10qk

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The Greenbrier Companies Inc. (GBX) filed Quarterly Report for the period ended 2010-11-30.

The Greenbrier Companies Inc. has a market cap of $441.4 million; its shares were traded at around $20.17 with and P/S ratio of 0.6. GBX is in the portfolios of John Keeley of Keeley Fund Management, Mario Gabelli of GAMCO Investors, Manning & Napier Advisors, Inc, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors.

Highlight of Business Operations:

Total revenue for the three months ended November 30, 2010 was $201.4 million, an increase of $29.7 million from revenues of $171.7 million in the prior comparable period. Net loss attributable to Greenbrier for the three months ended November 30, 2010 was $2.3 million or $0.11 per diluted common share compared to net loss attributable to Greenbrier of $3.2 million or $0.19 per diluted common share for the three months ended November 30, 2009.

Capital expenditures totaled $11.5 million and $11.9 million for the three months ended November 30, 2010 and 2009. Of these capital expenditures, approximately $1.4 million and $8.4 million were attributable to Leasing & Services operations. Leasing & Services capital expenditures for 2011, net of proceeds from sales of equipment, are expected to be approximately $40.0 million. We regularly sell assets from our lease fleet, some of which may have been purchased within the current year and included in capital expenditures. Proceeds from sales of equipment were $4.1 million and $2.7 million for the three months ended November 30, 2010 and 2009.

Cash provided by financing activities was $6.0 million for the three months ended November 30, 2010 compared to cash used in financing activities of $3.4 million for the three months ended November 30, 2009. During the three months ended November 30, 2010 we received $7.2 million in net proceeds from revolving notes borrowings and repaid $1.2 million in term debt. During the three months ended November 30, 2009 we repaid $3.9 million in net revolving credit lines and $1.2 million in term debt. This was partially offset by $1.7 million received in net proceeds from a new term loan borrowing.

type of borrowing and the defined ratio of debt to total capitalization. In addition, current lines of credit totaling $11.2 million secured by substantially all of our European assets, with various variable rates, are available for working capital needs of the European manufacturing operation. European credit facilities are continually being renewed. Currently these European credit facilities have maturities that range from April 2011 through June 2011. The Mexican joint venture line of credit for up to $10.0 million is secured by certain of the joint ventures accounts receivable and inventory. Advances under this facility bear interest at LIBOR plus 2.5% and are due 180 days after the date of borrowing. Currently the Mexican joint venture can borrow on this facility through August 2011. As of November 30, 2010 outstanding borrowings under our facilities consists of $3.6 million in letters of credit outstanding under the North American credit facility, $3.7 million in revolving notes outstanding under the European credit facilities and $6.2 million outstanding under the joint venture credit facility.

Available borrowings under our credit facilities are generally based on defined levels of inventory, receivables, property, plant and equipment and leased equipment, as well as total debt to consolidated capitalization and interest coverage ratios which, as of November 30, 2010 would allow for maximum additional borrowing of $123.9 million. The Company has an aggregate of $107.7 million available to draw down under the committed credit facilities as of November 30, 2010. This amount consists of $96.4 million available on the North American credit facility, $7.5 million on the European credit facilities and $3.8 million on the Mexican joint venture credit facility.

We have $0.5 million in long-term advances to an unconsolidated affiliate which are secured by accounts receivable and inventory. As of November 30, 2010, this same unconsolidated affiliate had $0.2 million in third party debt for which we have guaranteed 33% or approximately $70 thousand. The facility has been idled and expects to restart production when demand returns. We, along with our partners, have made an additional equity investment during the first quarter of 2011, of which our share was $0.2 million. Additional investments may be required.

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