The Greenbrier Companies Inc. (GBX, Financial) filed Quarterly Report for the period ended 2009-02-28.
Greenbrier Companies Inc. is a leading supplier of transportation equipment and services to the railroad and related industries. The manufacturing segment produces double-stack intermodal railcars conventional railcars and marine vessels and performs repair and refurbishment activities for both intermodal and conventional railcars. In addition to manufacturing they are engaged in complementary leasing and services activities. The Greenbrier Companies Inc. has a market cap of $77.6 million; its shares were traded at around $4.65 with a P/E ratio of 4.4 and P/S ratio of 0.1. The dividend yield of The Greenbrier Companies Inc. stocks is 3.4%. The Greenbrier Companies Inc. had an annual average earning growth of 3.4% over the past 10 years.
Selling and administrative costs were $32.2 million for the six months ended February 28, 2009 compared to $41.2 million for the comparable prior period, a decrease of $9.0 million. The decrease was primarily due to lower employee related costs, continued cost reduction efforts in the current economic environment and reversal of $2.1 million of certain accruals. The decrease was partially offset by severance costs of $0.8 million related to reductions in work force.
Interest and foreign exchange decreased $1.3 million to $19.0 million for the six months ended February 28, 2009, compared to $20.3 million in the prior comparable period. Interest expense decreased $0.4 million to $18.5 million due to lower debt levels and more favorable interest rates on our variable rate debt. Current period results include foreign exchange losses of $0.5 million compared to foreign exchange losses of $1.4 million in the prior comparable period principally due to the continued fluctuations in the Polish Zloty and Mexican Peso relative to other currencies. Included in the $0.5 million foreign exchange loss is a $2.6 million foreign exchange loss that was recorded in association with foreign currency forward exchange contracts that did not qualify for hedge accounting treatment under SFAS 133. These contracts became eligible for hedge accounting treatment at the end of January 2009.
Capital expenditures totaled $15.1 million and $16.0 million for the six months ended February 28, 2009 and February 29, 2008. Of these capital expenditures, approximately $6.6 million and $3.5 million were attributable to Leasing & Services operations for the six months ended February 28, 2009 and February 29, 2008. We regularly sell assets from our lease fleet, some of which may have been purchased within the current year and included in capital expenditures. Depending on market conditions and fleet management objectives, Leasing & Services capital expenditures for 2009, net of proceeds from sales of equipment, are expected to be nominal. Proceeds from the sale of equipment were $1.4 million and $6.4 million for the six months ended February 28, 2009 and February 29, 2008.
All amounts originating in foreign currency have been translated at the February 28, 2009 exchange rate for the following discussion. Senior secured revolving credit facilities, consisting of two components, aggregated $315.2 million as of February 28, 2009. A $290.0 million revolving line of credit is available through November 2011 to provide working capital and interim financing of equipment, principally for the United States and Mexican operations. Advances under this facility bear interest at variable rates that depend on the type of borrowing and the defined ratio of debt to total capitalization. In addition, current lines of credit totaling $25.2 million, with various variable rates, are available for working capital needs of the European manufacturing operation. Currently these European credit facilities have maturities that range from April 30, 2009 through August 2009. European credit facility renewals are continually under negotiation and the Company expects the available credit facilities to be approximately $25.0 million through August 31, 2009, but dependent on the outcome of negotiations, these amounts could be reduced to approximately $20.0 million as of May 31, 2009 and $15.0 million as of August 31, 2009.
As of February 28, 2009 outstanding borrowings under our facilities aggregated $101.5 million in revolving notes and $3.6 million in letters of credit. This consists of $80.0 million in revolving notes and $3.6 million in letters of credit outstanding under the United States credit facility and $21.5 million in revolving notes outstanding under the European credit facilities. Available borrowings for all 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 February 28, 2009 levels would provide for maximum additional borrowing of $84.0 million.
Read the The complete ReportGBX is in the portfolios of John Keeley of Keeley Fund Management.
Greenbrier Companies Inc. is a leading supplier of transportation equipment and services to the railroad and related industries. The manufacturing segment produces double-stack intermodal railcars conventional railcars and marine vessels and performs repair and refurbishment activities for both intermodal and conventional railcars. In addition to manufacturing they are engaged in complementary leasing and services activities. The Greenbrier Companies Inc. has a market cap of $77.6 million; its shares were traded at around $4.65 with a P/E ratio of 4.4 and P/S ratio of 0.1. The dividend yield of The Greenbrier Companies Inc. stocks is 3.4%. The Greenbrier Companies Inc. had an annual average earning growth of 3.4% over the past 10 years.
Highlight of Business Operations:
Interest and foreign exchange decreased $1.7 million to $8.2 million for the three months ended February 28, 2009, compared to $9.9 million in the prior comparable period. Interest expense decreased $0.8 million to $8.9 million due to lower debt levels and more favorable interest rates on our variable rate debt. Current period results include foreign exchange gains of $0.7 million compared to foreign exchange losses of $0.2 million in the prior comparable period principally due to the continued fluctuations in the Polish Zloty and Mexican Peso relative to other currencies. Included in the $0.7 million foreign exchange gain is a $1.4 million foreign exchange loss that was recorded in association with foreign currency forward exchange contracts that did not qualify for hedge accounting treatment under SFAS 133. These contracts became eligible for hedge accounting treatment at the end of January 2009.Selling and administrative costs were $32.2 million for the six months ended February 28, 2009 compared to $41.2 million for the comparable prior period, a decrease of $9.0 million. The decrease was primarily due to lower employee related costs, continued cost reduction efforts in the current economic environment and reversal of $2.1 million of certain accruals. The decrease was partially offset by severance costs of $0.8 million related to reductions in work force.
Interest and foreign exchange decreased $1.3 million to $19.0 million for the six months ended February 28, 2009, compared to $20.3 million in the prior comparable period. Interest expense decreased $0.4 million to $18.5 million due to lower debt levels and more favorable interest rates on our variable rate debt. Current period results include foreign exchange losses of $0.5 million compared to foreign exchange losses of $1.4 million in the prior comparable period principally due to the continued fluctuations in the Polish Zloty and Mexican Peso relative to other currencies. Included in the $0.5 million foreign exchange loss is a $2.6 million foreign exchange loss that was recorded in association with foreign currency forward exchange contracts that did not qualify for hedge accounting treatment under SFAS 133. These contracts became eligible for hedge accounting treatment at the end of January 2009.
Capital expenditures totaled $15.1 million and $16.0 million for the six months ended February 28, 2009 and February 29, 2008. Of these capital expenditures, approximately $6.6 million and $3.5 million were attributable to Leasing & Services operations for the six months ended February 28, 2009 and February 29, 2008. We regularly sell assets from our lease fleet, some of which may have been purchased within the current year and included in capital expenditures. Depending on market conditions and fleet management objectives, Leasing & Services capital expenditures for 2009, net of proceeds from sales of equipment, are expected to be nominal. Proceeds from the sale of equipment were $1.4 million and $6.4 million for the six months ended February 28, 2009 and February 29, 2008.
All amounts originating in foreign currency have been translated at the February 28, 2009 exchange rate for the following discussion. Senior secured revolving credit facilities, consisting of two components, aggregated $315.2 million as of February 28, 2009. A $290.0 million revolving line of credit is available through November 2011 to provide working capital and interim financing of equipment, principally for the United States and Mexican operations. Advances under this facility bear interest at variable rates that depend on the type of borrowing and the defined ratio of debt to total capitalization. In addition, current lines of credit totaling $25.2 million, with various variable rates, are available for working capital needs of the European manufacturing operation. Currently these European credit facilities have maturities that range from April 30, 2009 through August 2009. European credit facility renewals are continually under negotiation and the Company expects the available credit facilities to be approximately $25.0 million through August 31, 2009, but dependent on the outcome of negotiations, these amounts could be reduced to approximately $20.0 million as of May 31, 2009 and $15.0 million as of August 31, 2009.
As of February 28, 2009 outstanding borrowings under our facilities aggregated $101.5 million in revolving notes and $3.6 million in letters of credit. This consists of $80.0 million in revolving notes and $3.6 million in letters of credit outstanding under the United States credit facility and $21.5 million in revolving notes outstanding under the European credit facilities. Available borrowings for all 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 February 28, 2009 levels would provide for maximum additional borrowing of $84.0 million.
Read the The complete ReportGBX is in the portfolios of John Keeley of Keeley Fund Management.
