Guarantor/Non Guarantor | 12 Months Ended |
Aug. 31, 2013 |
Guarantor/Non Guarantor | ' |
Note 28 - Guarantor/Non Guarantor |
The convertible senior notes due 2026 (the Notes) issued on May 22, 2006 are fully and unconditionally and jointly and severally guaranteed by substantially all of Greenbrier’s material 100% owned U.S. subsidiaries: Autostack Company LLC, Greenbrier-Concarril, LLC, Greenbrier Leasing Company LLC, Greenbrier Leasing Limited Partner, LLC, Greenbrier Management Services, LLC, Greenbrier Leasing, L.P., Greenbrier Railcar LLC, Gunderson LLC, Gunderson Marine LLC, Gunderson Rail Services LLC, Meridian Rail Holding Corp., Meridian Rail Acquisition Corp., Meridian Rail Mexico City Corp., Brandon Railroad LLC, Gunderson Specialty Products, LLC and Greenbrier Railcar Leasing, Inc. No other subsidiaries guarantee the Notes including Greenbrier Union Holdings I LLC, Greenbrier MUL Holdings I LLC, Greenbrier Leasing Limited, Greenbrier Europe B.V., Greenbrier Germany GmbH, WagonySwidnica S.A., Zaklad Naprawczy Taboru Kolejowego Olawa sp. z o.o., Zaklad Transportu Kolejowego SIARKOPOL sp. z o.o., Gunderson-Concarril, S.A. de C.V., Greenbrier Rail Services Canada, Inc., Mexico Meridianrail Services, S.A. de C.V., Greenbrier Railcar Services – Tierra Blanca S.A. de C.V., YSD Doors, S.A. de C.V., Gunderson-Gimsa S.A. de C.V., Greenbrier, S.A. de C.V. and Greenbrier-Gimsa, LLC. |
The following represents the supplemental consolidating condensed financial information of Greenbrier and its guarantor and non guarantor subsidiaries, as of August 31, 2013 and 2012 and for the years ended August 31, 2013, 2012 and 2011. The information is presented on the basis of Greenbrier accounting for its ownership of its wholly owned subsidiaries using the equity method of accounting. The equity method investment for each subsidiary is recorded by the parent in intangibles and other assets. Intercompany transactions of goods and services between the guarantor and non guarantor subsidiaries are presented as if the sales or transfers were at fair value to third parties and eliminated in consolidation. |
|
The Greenbrier Companies, Inc. |
Condensed Consolidating Balance Sheet |
As of August 31, 2013 |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Combined | | | Combined | | | Eliminations | | | Consolidated | |
Guarantor | Non-Guarantor |
Subsidiaries | Subsidiaries |
Assets | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 63,173 | | | $ | 25 | | | $ | 34,237 | | | $ | – | | | $ | 97,435 | |
Restricted cash | | | – | | | | 1,907 | | | | 6,900 | | | | – | | | | 8,807 | |
Accounts receivable, net | | | 37,623 | | | | 217,268 | | | | 54,412 | | | | (154,455 | ) | | | 154,848 | |
Inventories | | | – | | | | 151,023 | | | | 165,855 | | | | (95 | ) | | | 316,783 | |
Leased railcars for syndication | | | – | | | | 68,827 | | | | – | | | | (347 | ) | | | 68,480 | |
Equipment on operating leases, net | | | – | | | | 304,234 | | | | 3,809 | | | | (2,575 | ) | | | 305,468 | |
Property, plant and equipment, net | | | 2,112 | | | | 103,315 | | | | 96,106 | | | | – | | | | 201,533 | |
Goodwill | | | – | | | | 57,416 | | | | – | | | | – | | | | 57,416 | |
Intangibles and other assets, net | | | 716,029 | | | | 118,541 | | | | 13,515 | | | | (769,114 | ) | | | 78,971 | |
| |
| | $ | 818,937 | | | $ | 1,022,556 | | | $ | 374,834 | | | $ | (926,586 | ) | | $ | 1,289,741 | |
| |
Liabilities and Equity | | | | | | | | | | | | | | | | | | | | |
Revolving notes | | $ | – | | | $ | – | | | $ | 48,209 | | | $ | – | | | $ | 48,209 | |
Accounts payable and accrued liabilities | | | 137,631 | | | | 178,662 | | | | 154,096 | | | | (154,451 | ) | | | 315,938 | |
Deferred income taxes | | | 8,093 | | | | 86,610 | | | | – | | | | (8,663 | ) | | | 86,040 | |
Deferred revenue | | | 155 | | | | 8,546 | | | | 98 | | | | 39 | | | | 8,838 | |
Notes payable | | | 244,856 | | | | 126,863 | | | | 2,170 | | | | – | | | | 373,889 | |
Total equity-Greenbrier | | | 428,202 | | | | 621,875 | | | | 141,945 | | | | (763,820 | ) | | | 428,202 | |
Noncontrolling interest | | | – | | | | – | | | | 28,316 | | | | 309 | | | | 28,625 | |
| |
Total equity | | | 428,202 | | | | 621,875 | | | | 170,261 | | | | (763,511 | ) | | | 456,827 | |
| |
| | $ | 818,937 | | | $ | 1,022,556 | | | $ | 374,834 | | | $ | (926,586 | ) | | $ | 1,289,741 | |
| |
|
The Greenbrier Companies, Inc. |
Condensed Consolidating Statement of Operations |
For the year ended August 31, 2013 |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Combined | | | Combined | | | Eliminations | | | Consolidated | |
Guarantor | Non-Guarantor |
Subsidiaries | Subsidiaries |
Revenue | | | | | | | | | | | | | | | | | | | | |
Manufacturing | | $ | – | | | $ | 666,171 | | | $ | 1,001,017 | | | $ | (451,454 | ) | | $ | 1,215,734 | |
Wheels, Repair & Parts | | | – | | | | 480,849 | | | | – | | | | (11,627 | ) | | | 469,222 | |
Leasing & Services | | | 806 | | | | 70,672 | | | | 1 | | | | (17 | ) | | | 71,462 | |
| |
| | | 806 | | | | 1,217,692 | | | | 1,001,018 | | | | (463,098 | ) | | | 1,756,418 | |
Cost of revenue | | | | | | | | | | | | | | | | | | | | |
Manufacturing | | | – | | | | 610,379 | | | | 928,461 | | | | (455,951 | ) | | | 1,082,889 | |
Wheels, Repair & Parts | | | – | | | | 443,337 | | | | – | | | | (11,836 | ) | | | 431,501 | |
Leasing & Services | | | – | | | | 35,754 | | | | – | | | | (99 | ) | | | 35,655 | |
| |
| | | – | | | | 1,089,470 | | | | 928,461 | | | | (467,886 | ) | | | 1,550,045 | |
Margin | | | 806 | | | | 128,222 | | | | 72,557 | | | | 4,788 | | | | 206,373 | |
Selling and administrative | | | 38,636 | | | | 30,937 | | | | 33,602 | | | | – | | | | 103,175 | |
Net gain on disposition of equipment | | | – | | | | (16,238 | ) | | | (1,276 | ) | | | (558 | ) | | | (18,072 | ) |
Goodwill impairment | | | – | | | | 76,900 | | | | – | | | | – | | | | 76,900 | |
Restructuring charges | | | – | | | | 2,719 | | | | – | | | | – | | | | 2,719 | |
| |
Earnings (loss) from operations | | | (37,830 | ) | | | 33,904 | | | | 40,231 | | | | 5,346 | | | | 41,651 | |
Other costs | | | | | | | | | | | | | | | | | | | | |
Interest and foreign exchange | | | 15,358 | | | | 3,901 | | | | 3,100 | | | | (201 | ) | | | 22,158 | |
| |
Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates | | | (53,188 | ) | | | 30,003 | | | | 37,131 | | | | 5,547 | | | | 19,493 | |
Income tax (expense) benefit | | | 21,367 | | | | (36,202 | ) | | | (9,067 | ) | | | (1,158 | ) | | | (25,060 | ) |
| |
Earnings (loss) before earnings (loss) from unconsolidated affiliates | | | (31,821 | ) | | | (6,199 | ) | | | 28,064 | | | | 4,389 | | | | (5,567 | ) |
Earnings (loss) from unconsolidated affiliates | | | 20,773 | | | | 11,532 | | | | 45 | | | | (32,164 | ) | | | 186 | |
| |
Net earnings (loss) | | | (11,048 | ) | | | 5,333 | | | | 28,109 | | | | (27,775 | ) | | | (5,381 | ) |
Net (earnings) loss attributable to noncontrolling interest | | | – | | | | – | | | | (3,946 | ) | | | (1,721 | ) | | | (5,667 | ) |
| |
Net earnings (loss) attributable to Greenbrier | | $ | (11,048 | ) | | $ | 5,333 | | | $ | 24,163 | | | $ | (29,496 | ) | | $ | (11,048 | ) |
| |
|
The Greenbrier Companies, Inc. |
Consolidating Statement of Comprehensive Income (Loss) |
For the year ended August 31, 2013 |
|
| | | | | | | | | | | | | | | | | | | | |
(In thousands) | | Parent | | | Combined | | | Combined | | | Eliminations | | | Consolidated | |
Guarantor | Non- |
Subsidiaries | Guarantor |
| Subsidiaries |
Net earnings (loss) | | $ | (11,048 | ) | | $ | 5,333 | | | $ | 28,109 | | | $ | (27,775 | ) | | $ | (5,381 | ) |
Other comprehensive income (loss) | | | | | | | | | | | | | | | | | | | | |
Translation adjustment | | | – | | | | (34 | ) | | | 1,090 | | | | – | | | | 1,056 | |
Reclassification of derivative financial instruments recognized in net earnings (loss) | | | – | | | | 1,197 | | | | (1,758 | ) | | | – | | | | (561 | ) |
Unrealized loss on derivative financial instruments | | | – | | | | (202 | ) | | | (197 | ) | | | – | | | | (399 | ) |
Other (net of tax effect) | | | – | | | | – | | | | (203 | ) | | | – | | | | (203 | ) |
| |
| | | – | | | | 961 | | | | (1,068 | ) | | | – | | | | (107 | ) |
| |
Comprehensive income (loss) | | | (11,048 | ) | | | 6,294 | | | | 27,041 | | | | (27,775 | ) | | | (5,488 | ) |
Comprehensive (income) loss attributable to noncontrolling interest | | | – | | | | – | | | | (3,974 | ) | | | (1,721 | ) | | | (5,695 | ) |
| |
Comprehensive income (loss) attributable to Greenbrier | | $ | (11,048 | ) | | $ | 6,294 | | | $ | 23,067 | | | $ | (29,496 | ) | | $ | (11,183 | ) |
| |
|
The Greenbrier Companies, Inc. |
Condensed Consolidating Statement of Cash Flows |
For the year ended August 31, 2013 |
|
| | | | | | | | | | | | | | | | | | | | |
(In thousands) | | Parent | | | Combined | | | Combined | | | Eliminations | | | Consolidated | |
Guarantor | Non-Guarantor |
Subsidiaries | Subsidiaries |
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | | |
Net earnings (loss) | | $ | (11,048 | ) | | $ | 5,333 | | | $ | 28,109 | | | $ | (27,775 | ) | | $ | (5,381 | ) |
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: | | | | | | | | | | | | | | | | | | | | |
Deferred income taxes | | | (1,005 | ) | | | (9,983 | ) | | | (611 | ) | | | 1,937 | | | | (9,662 | ) |
Depreciation and amortization | | | 2,124 | | | | 29,688 | | | | 9,734 | | | | (99 | ) | | | 41,447 | |
Net gain on disposition of equipment | | | – | | | | (16,238 | ) | | | (1,276 | ) | | | (558 | ) | | | (18,072 | ) |
Accretion of debt discount | | | 2,455 | | | | – | | | | – | | | | – | | | | 2,455 | |
Stock based compensation expense | | | 6,196 | | | | 106 | | | | – | | | | – | | | | 6,302 | |
Goodwill impairment | | | – | | | | 76,900 | | | | – | | | | – | | | | 76,900 | |
Other | | | – | | | | 1,160 | | | | (70 | ) | | | (2,145 | ) | | | (1,055 | ) |
Decrease (increase) in assets: | | | | | | | | | | | | | | | | | | | | |
Accounts receivable | | | 15,704 | | | | (360 | ) | | | (6,140 | ) | | | (16,527 | ) | | | (7,323 | ) |
Inventories | | | – | | | | 4,975 | | | | 14,280 | | | | (210 | ) | | | 19,045 | |
Leased railcars for syndication | | | – | | | | 25,325 | | | | – | | | | (2,444 | ) | | | 22,881 | |
Other | | | 272 | | | | 416 | | | | 28,400 | | | | (28,119 | ) | | | 969 | |
Increase (decrease) in liabilities: | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued liabilities | | | (626 | ) | | | (27,742 | ) | | | (3,200 | ) | | | 16,139 | | | | (15,429 | ) |
Deferred revenue | | | (154 | ) | | | (7,505 | ) | | | (836 | ) | | | 10 | | | | (8,485 | ) |
| |
Net cash provided by (used in) operating activities | | | 13,918 | | | | 82,075 | | | | 68,390 | | | | (59,791 | ) | | | 104,592 | |
| |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | | |
Proceeds from sales of assets | | | – | | | | 74,545 | | | | 793 | | | | – | | | | 75,338 | |
Capital expenditures | | | (515 | ) | | | (28,586 | ) | | | (32,017 | ) | | | 291 | | | | (60,827 | ) |
Decrease (increase) in restricted cash | | | – | | | | 139 | | | | (2,669 | ) | | | – | | | | (2,530 | ) |
Investment in and advances to unconsolidated affiliates | | | (28,175 | ) | | | (31,325 | ) | | | (2,240 | ) | | | 59,500 | | | | (2,240 | ) |
Other | | | – | | | | – | | | | (3,582 | ) | | | – | | | | (3,582 | ) |
| |
Net cash provided by (used in) investing activities | | | (28,690 | ) | | | 14,773 | | | | (39,715 | ) | | | 59,791 | | | | 6,159 | |
| |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | | |
Net changes in revolving notes with maturities of 90 days or less | | | – | | | | – | | | | (16,396 | ) | | | – | | | | (16,396 | ) |
Proceeds from revolving notes with maturities longer than 90 days | | | – | | | | – | | | | 38,177 | | | | – | | | | 38,177 | |
Repayment of revolving notes with maturities longer than 90 days | | | – | | | | – | | | | (34,966 | ) | | | – | | | | (34,966 | ) |
Intercompany advances | | | 95,598 | | | | (93,991 | ) | | | (1,607 | ) | | | – | | | | – | |
Proceeds from issuance of notes payable | | | – | | | | – | | | | 2,186 | | | | – | | | | 2,186 | |
Repayments of notes payable | | | (52,868 | ) | | | (4,090 | ) | | | (1,873 | ) | | | – | | | | (58,831 | ) |
Excess tax benefit from restricted stock awards | | | 900 | | | | – | | | | – | | | | – | | | | 900 | |
Investment by joint venture partner | | | – | | | | – | | | | 3,206 | | | | – | | | | 3,206 | |
Other | | | (8 | ) | | | – | | | | – | | | | – | | | | (8 | ) |
| |
Net cash provided by (used in) financing activities | | | 43,622 | | | | (98,081 | ) | | | (11,273 | ) | | | – | | | | (65,732 | ) |
| |
Effect of exchange rate changes | | | – | | | | 964 | | | | (2,119 | ) | | | – | | | | (1,155 | ) |
Increase (decrease) in cash and cash equivalents | | | 28,850 | | | | (269 | ) | | | 15,283 | | | | – | | | | 43,864 | |
Cash and cash equivalents | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | 34,323 | | | | 294 | | | | 18,954 | | | | – | | | | 53,571 | |
| |
End of period | | $ | 63,173 | | | $ | 25 | | | $ | 34,237 | | | $ | – | | | $ | 97,435 | |
| |
|
The Greenbrier Companies, Inc. |
Condensed Consolidating Balance Sheet |
As of August 31, 2012 |
|
| | | | | | | | | | | | | | | | | | | | |
(In thousands) | | Parent | | | Combined | | | Combined | | | Eliminations | | | Consolidated | |
Guarantor | Non-Guarantor |
Subsidiaries | Subsidiaries |
Assets | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 34,323 | | | $ | 294 | | | $ | 18,954 | | | $ | – | | | $ | 53,571 | |
Restricted cash | | | – | | | | 2,047 | | | | 4,230 | | | | – | | | | 6,277 | |
Accounts receivable, net | | | 53,326 | | | | 122,917 | | | | 45,467 | | | | (75,384 | ) | | | 146,326 | |
Inventories | | | – | | | | 138,236 | | | | 178,810 | | | | (305 | ) | | | 316,741 | |
Leased railcars for syndication | | | – | | | | 100,590 | | | | – | | | | (2,792 | ) | | | 97,798 | |
Equipment on operating leases, net | | | – | | | | 365,925 | | | | – | | | | (2,957 | ) | | | 362,968 | |
Property, plant and equipment, net | | | 3,721 | | | | 106,219 | | | | 72,489 | | | | – | | | | 182,429 | |
Goodwill | | | – | | | | 137,066 | | | | – | | | | – | | | | 137,066 | |
Intangibles and other assets, net | | | 688,261 | | | | 91,278 | | | | 11,304 | | | | (709,475 | ) | | | 81,368 | |
| |
| | $ | 779,631 | | | $ | 1,064,572 | | | $ | 331,254 | | | $ | (790,913 | ) | | $ | 1,384,544 | |
| |
Liabilities and Equity | | | | | | | | | | | | | | | | | | | | |
Revolving notes | | $ | – | | | $ | – | | | $ | 60,755 | | | $ | – | | | $ | 60,755 | |
Accounts payable and accrued liabilities | | | 43,178 | | | | 205,477 | | | | 155,844 | | | | (74,991 | ) | | | 329,508 | |
Deferred income taxes | | | 9,097 | | | | 96,593 | | | | – | | | | (10,327 | ) | | | 95,363 | |
Deferred revenue | | | 310 | | | | 15,970 | | | | 901 | | | | 13 | | | | 17,194 | |
Notes payable | | | 295,269 | | | | 130,953 | | | | 1,857 | | | | – | | | | 428,079 | |
Total equity Greenbrier | | | 431,777 | | | | 615,579 | | | | 90,761 | | | | (706,340 | ) | | | 431,777 | |
Noncontrolling interest | | | – | | | | – | | | | 21,136 | | | | 732 | | | | 21,868 | |
| |
Total equity | | | 431,777 | | | | 615,579 | | | | 111,897 | | | | (705,608 | ) | | | 453,645 | |
| |
| | $ | 779,631 | | | $ | 1,064,572 | | | $ | 331,254 | | | $ | (790,913 | ) | | $ | 1,384,544 | |
| |
|
The Greenbrier Companies, Inc. |
Condensed Consolidating Statement of Operations |
For the year ended August 31, 2012 |
|
| | | | | | | | | | | | | | | | | | | | |
(In thousands) | | Parent | | | Combined | | | Combined | | | Eliminations | | | Consolidated | |
Guarantor | Non-Guarantor |
Subsidiaries | Subsidiaries |
Revenue | | | | | | | | | | | | | | | | | | | | |
Manufacturing | | $ | – | | | $ | 809,629 | | | $ | 1,057,996 | | | $ | (613,661 | ) | | $ | 1,253,964 | |
Wheels, Repair & Parts | | | – | | | | 494,359 | | | | – | | | | (12,494 | ) | | | 481,865 | |
Leasing & Services | | | 1,102 | | | | 71,382 | | | | – | | | | (597 | ) | | | 71,887 | |
| |
| | | 1,102 | | | | 1,375,370 | | | | 1,057,996 | | | | (626,752 | ) | | | 1,807,716 | |
Cost of revenue | | | | | | | | | | | | | | | | | | | | |
Manufacturing | | | – | | | | 730,850 | | | | 996,591 | | | | (605,057 | ) | | | 1,122,384 | |
Wheels, Repair & Parts | | | – | | | | 446,034 | | | | – | | | | (12,493 | ) | | | 433,541 | |
Leasing & Services | | | – | | | | 37,450 | | | | – | | | | (79 | ) | | | 37,371 | |
| |
| | | – | | | | 1,214,334 | | | | 996,591 | | | | (617,629 | ) | | | 1,593,296 | |
Margin | | | 1,102 | | | | 161,036 | | | | 61,405 | | | | (9,123 | ) | | | 214,420 | |
Selling and administrative | | | 42,486 | | | | 29,383 | | | | 32,727 | | | | – | | | | 104,596 | |
Net gain on disposition of equipment | | | – | | | | (8,963 | ) | | | – | | | | (1 | ) | | | (8,964 | ) |
| |
Earnings (loss) from operations | | | (41,384 | ) | | | 140,616 | | | | 28,678 | | | | (9,122 | ) | | | 118,788 | |
Other costs | | | | | | | | | | | | | | | | | | | | |
Interest and foreign exchange | | | 18,839 | | | | 3,754 | | | | 3,336 | | | | (1,120 | ) | | | 24,809 | |
| |
Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates | | | (60,223 | ) | | | 136,862 | | | | 25,342 | | | | (8,002 | ) | | | 93,979 | |
Income tax (expense) benefit | | | 21,560 | | | | (51,655 | ) | | | (4,362 | ) | | | 2,064 | | | | (32,393 | ) |
| |
| | | (38,663 | ) | | | 85,207 | | | | 20,980 | | | | (5,938 | ) | | | 61,586 | |
Earnings (loss) from unconsolidated affiliates | | | 97,371 | | | | (537 | ) | | | (1 | ) | | | (97,249 | ) | | | (416 | ) |
| |
Net earnings (loss) | | | 58,708 | | | | 84,670 | | | | 20,979 | | | | (103,187 | ) | | | 61,170 | |
Net loss (earnings) attributable to noncontrolling interest | | | – | | | | – | | | | (5,574 | ) | | | 3,112 | | | | (2,462 | ) |
| |
Net earnings (loss) attributable to Greenbrier | | $ | 58,708 | | | $ | 84,670 | | | $ | 15,405 | | | $ | (100,075 | ) | | $ | 58,708 | |
| |
|
The Greenbrier Companies, Inc. |
Consolidating Statement of Comprehensive Income (Loss) |
For the year ended August 31, 2012 |
|
| | | | | | | | | | | | | | | | | | | | |
(In thousands) | | Parent | | | Combined | | | Combined | | | Eliminations | | | Consolidated | |
Guarantor | Non-Guarantor |
Subsidiaries | Subsidiaries |
Net earnings (loss) | | $ | 58,708 | | | $ | 84,670 | | | $ | 20,979 | | | $ | (103,187 | ) | | $ | 61,170 | |
Other comprehensive income (loss) | | | | | | | | | | | | | | | | | | | | |
Translation adjustment | | | 11 | | | | (367 | ) | | | (3,812 | ) | | | – | | | | (4,168 | ) |
Reclassification of derivative financial instruments recognized in net earnings (loss) | | | – | | | | 1,025 | | | | 3,963 | | | | – | | | | 4,988 | |
Unrealized gain (loss) on derivative financial instruments | | | – | | | | (122 | ) | | | 830 | | | | – | | | | 708 | |
Other (net of tax effect) | | | – | | | | – | | | | (130 | ) | | | – | | | | (130 | ) |
| |
| | | 11 | | | | 536 | | | | 851 | | | | – | | | | 1,398 | |
| |
Comprehensive income (loss) | | | 58,719 | | | | 85,206 | | | | 21,830 | | | | (103,187 | ) | | | 62,568 | |
Comprehensive (income) loss attributable to noncontrolling interest | | | – | | | | – | | | | (5,446 | ) | | | 3,112 | | | | (2,334 | ) |
| |
Comprehensive income (loss) attributable to Greenbrier | | $ | 58,719 | | | $ | 85,206 | | | $ | 16,384 | | | $ | (100,075 | ) | | $ | 60,234 | |
| |
|
The Greenbrier Companies, Inc. |
Condensed Consolidating Statement of Cash Flows |
For the year ended August 31, 2012 |
|
| | | | | | | | | | | | | | | | | | | | |
(In thousands) | | Parent | | | Combined | | | Combined | | | Eliminations | | | Consolidated | |
Guarantor | Non-Guarantor |
Subsidiaries | Subsidiaries |
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | | |
Net earnings (loss) | | $ | 58,708 | | | $ | 84,670 | | | $ | 20,979 | | | $ | (103,187 | ) | | $ | 61,170 | |
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: | | | | | | | | | | | | | | | | | | | | |
Deferred income taxes | | | 23,749 | | | | (7,548 | ) | | | (2,520 | ) | | | (2,064 | ) | | | 11,617 | |
Depreciation and amortization | | | 2,596 | | | | 31,618 | | | | 8,236 | | | | (79 | ) | | | 42,371 | |
Gain on sales of leased equipment | | | – | | | | (8,963 | ) | | | – | | | | (1 | ) | | | (8,964 | ) |
Accretion of debt discount | | | 3,259 | | | | – | | | | – | | | | – | | | | 3,259 | |
Stock based compensation expense | | | 8,757 | | | | – | | | | – | | | | – | | | | 8,757 | |
Other | | | – | | | | 1,024 | | | | 37 | | | | 3,844 | | | | 4,905 | |
Decrease (increase) in assets: | | | | | | | | | | | | | | | | | | | | |
Accounts receivable | | | 13,197 | | | | 44,373 | | | | (20,223 | ) | | | 416 | | | | 37,763 | |
Inventories | | | – | | | | 3,395 | | | | 313 | | | | 1 | | | | 3,709 | |
Leased railcars for syndication | | | – | | | | (78,863 | ) | | | – | | | | 2,792 | | | | (76,071 | ) |
Other | | | 1,847 | | | | (393 | ) | | | 4,878 | | | | (6,332 | ) | | | – | |
Increase (decrease) in liabilities: | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued liabilities | | | (43,798 | ) | | | 55,609 | | | | 4,448 | | | | (23 | ) | | | 16,236 | |
Deferred revenue | | | (155 | ) | | | 10,711 | | | | 735 | | | | 13 | | | | 11,304 | |
| |
Net cash provided by (used in) operating activities | | | 68,160 | | | | 135,633 | | | | 16,883 | | | | (104,620 | ) | | | 116,056 | |
| |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | | |
Proceeds from sales of equipment | | | – | | | | 33,560 | | | | – | | | | – | | | | 33,560 | |
Capital expenditures | | | (709 | ) | | | (89,531 | ) | | | (28,684 | ) | | | 1,039 | | | | (117,885 | ) |
Decrease (increase) in restricted cash | | | – | | | | 66 | | | | (4,230 | ) | | | – | | | | (4,164 | ) |
Investment in and net advances to unconsolidated affiliates | | | (103,703 | ) | | | 230 | | | | (614 | ) | | | 103,581 | | | | (506 | ) |
Intercompany advances | | | 19,092 | | | | – | | | | – | | | | (19,092 | ) | | | – | |
Other | | | – | | | | 48 | | | | – | | | | – | | | | 48 | |
| |
Net cash provided by (used in) investing Activities | | | (85,320 | ) | | | (55,627 | ) | | | (33,528 | ) | | | 85,528 | | | | (88,947 | ) |
| |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | | |
Net changes in revolving notes with maturities of 90 days or less | | | (60,000 | ) | | | – | | | | 2,698 | | | | – | | | | (57,302 | ) |
Proceeds from revolving notes with maturities longer than 90 days | | | – | | | | – | | | | 63,773 | | | | – | | | | 63,773 | |
Repayment of revolving notes with maturities longer than 90 days | | | – | | | | – | | | | (33,934 | ) | | | – | | | | (33,934 | ) |
Intercompany advances | | | 76,476 | | | | (76,936 | ) | | | (18,632 | ) | | | 19,092 | | | | – | |
Proceeds from issuance of notes Payable | | | – | | | | 250 | | | | 2,500 | | | | – | | | | 2,750 | |
Repayments of notes payable | | | – | | | | (4,166 | ) | | | (2,904 | ) | | | – | | | | (7,070 | ) |
Excess tax benefit from restricted stock awards | | | 1,627 | | | | – | | | | – | | | | – | | | | 1,627 | |
Investment by joint venture partner | | | – | | | | – | | | | 1,362 | | | | – | | | | 1,362 | |
| |
Net cash provided by (used in) financing activities | | | 18,103 | | | | (80,852 | ) | | | 14,863 | | | | 19,092 | | | | (28,794 | ) |
| |
Effect of exchange rate changes | | | 12 | | | | 611 | | | | 4,411 | | | | – | | | | 5,034 | |
Increase (decrease) in cash and cash equivalents | | | 955 | | | | (235 | ) | | | 2,629 | | | | – | | | | 3,349 | |
Cash and cash equivalents | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | 33,368 | | | | 529 | | | | 16,325 | | | | – | | | | 50,222 | |
| |
End of period | | $ | 34,323 | | | $ | 294 | | | $ | 18,954 | | | $ | – | | | $ | 53,571 | |
| |
|
The Greenbrier Companies, Inc. |
Condensed Consolidating Statement of Operations |
For the year ended August 31, 2011 |
|
| | | | | | | | | | | | | | | | | | | | |
(In thousands) | | Parent | | | Combined | | | Combined | | | Eliminations | | | Consolidated | |
Guarantor | Non-Guarantor |
Subsidiaries | Subsidiaries |
Revenue | | | | | | | | | | | | | | | | | | | | |
Manufacturing | | $ | 1,429 | | | $ | 413,608 | | | $ | 532,444 | | | $ | (226,379 | ) | | $ | 721,102 | |
Wheels, Repair & Parts | | | – | | | | 467,544 | | | | – | | | | (14,679 | ) | | | 452,865 | |
Leasing & Services | | | 1,833 | | | | 68,646 | | | | – | | | | (1,156 | ) | | | 69,323 | |
| |
| | | 3,262 | | | | 949,798 | | | | 532,444 | | | | (242,214 | ) | | | 1,243,290 | |
Cost of revenue | | | | | | | | | | | | | | | | | | | | |
Manufacturing | | | – | | | | 394,638 | | | | 492,855 | | | | (226,366 | ) | | | 661,127 | |
Wheels, Repair & Parts | | | – | | | | 419,824 | | | | – | | | | (14,375 | ) | | | 405,449 | |
Leasing & Services | | | – | | | | 37,253 | | | | – | | | | (70 | ) | | | 37,183 | |
| |
| | | – | | | | 851,715 | | | | 492,855 | | | | (240,811 | ) | | | 1,103,759 | |
Margin | | | 3,262 | | | | 98,083 | | | | 39,589 | | | | (1,403 | ) | | | 139,531 | |
Selling and administrative | | | 37,450 | | | | 22,256 | | | | 20,620 | | | | – | | | | 80,326 | |
Gain on disposition of equipment | | | – | | | | (8,227 | ) | | | – | | | | (142 | ) | | | (8,369 | ) |
| |
Earnings (loss) from operations | | | (34,188 | ) | | | 84,054 | | | | 18,969 | | | | (1,261 | ) | | | 67,574 | |
Other costs | | | | | | | | | | | | | | | | | | | | |
Interest and foreign exchange | | | 32,002 | | | | 4,022 | | | | 2,134 | | | | (1,166 | ) | | | 36,992 | |
Loss on extinguishment of debt | | | 15,657 | | | | – | | | | – | | | | – | | | | 15,657 | |
| |
Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates | | | (81,847 | ) | | | 80,032 | | | | 16,835 | | | | (95 | ) | | | 14,925 | |
Income tax (expense) benefit | | | 30,940 | | | | (32,953 | ) | | | (1,642 | ) | | | 91 | | | | (3,564 | ) |
| |
| | | (50,907 | ) | | | 47,079 | | | | 15,193 | | | | (4 | ) | | | 11,361 | |
Earnings (loss) from unconsolidated affiliates | | | 57,373 | | | | 4,196 | | | | – | | | | (64,543 | ) | | | (2,974 | ) |
| |
Net earnings (loss) | | | 6,466 | | | | 51,275 | | | | 15,193 | | | | (64,547 | ) | | | 8,387 | |
Net loss (earnings) attributable to noncontrolling interest | | | – | | | | – | | | | (1,923 | ) | | | 2 | | | | (1,921 | ) |
| |
Net earnings (loss) attributable to Greenbrier | | $ | 6,466 | | | $ | 51,275 | | | $ | 13,270 | | | $ | (64,545 | ) | | $ | 6,466 | |
| |
|
The Greenbrier Companies, Inc. |
Consolidating Statement of Comprehensive Income (Loss) |
For the year ended August 31, 2011 |
|
| | | | | | | | | | | | | | | | | | | | |
(In thousands) | | Parent | | | Combined | | | Combined | | | Eliminations | | | Consolidated | |
Guarantor | Non-Guarantor |
Subsidiaries | Subsidiaries |
Net earnings (loss) | | $ | 6,466 | | | $ | 51,275 | | | $ | 15,193 | | | $ | (64,547 | ) | | $ | 8,387 | |
Other comprehensive income (loss) | | | | | | | | | | | | | | | | | | | | |
Translation adjustment | | | – | | | | 390 | | | | 1,815 | | | | – | | | | 2,205 | |
Reclassification of derivative financial instruments recognized in net earnings (loss) | | | – | | | | (1,100 | ) | | | 71 | | | | – | | | | (1,029 | ) |
Unrealized gain (loss) on derivative financial instruments | | | – | | | | 1,560 | | | | (3,421 | ) | | | – | | | | (1,861 | ) |
Other (net of tax effect) | | | – | | | | – | | | | (6 | ) | | | – | | | | (6 | ) |
| |
| | | – | | | | 850 | | | | (1,541 | ) | | | – | | | | (691 | ) |
| |
Comprehensive income (loss) | | | 6,466 | | | | 52,125 | | | | 13,652 | | | | (64,547 | ) | | | 7,696 | |
Comprehensive (income) loss attributable to noncontrolling interest | | | – | | | | – | | | | (1,923 | ) | | | 2 | | | | (1,921 | ) |
| |
Comprehensive income (loss) attributable to Greenbrier | | $ | 6,466 | | | $ | 52,125 | | | $ | 11,729 | | | $ | (64,545 | ) | | $ | 5,775 | |
| |
|
The Greenbrier Companies, Inc. |
Condensed Consolidating Statement of Cash Flows |
For the year ended August 31, 2011 |
|
| | | | | | | | | | | | | | | | | | | | |
(In thousands) | | Parent | | | Combined | | | Combined | | | Eliminations | | | Consolidated | |
Guarantor | Non-Guarantor |
Subsidiaries | Subsidiaries |
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | | |
Net earnings (loss) | | $ | 6,466 | | | $ | 51,275 | | | $ | 15,193 | | | $ | (64,547 | ) | | $ | 8,387 | |
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: | | | | | | | | | | | | | | | | | | | | |
Deferred income taxes | | | (15,380 | ) | | | 16,560 | | | | 1,311 | | | | (92 | ) | | | 2,399 | |
Depreciation and amortization | | | 2,701 | | | | 29,413 | | | | 6,250 | | | | (71 | ) | | | 38,293 | |
Gain on sales of leased equipment | | | – | | | | (4,979 | ) | | | – | | | | (142 | ) | | | (5,121 | ) |
Accretion of debt discount | | | 6,583 | | | | – | | | | – | | | | – | | | | 6,583 | |
Stock based compensation expense | | | 7,073 | | | | – | | | | – | | | | – | | | | 7,073 | |
Loss on extinguishment of debt (non-cash portion) | | | 8,453 | | | | – | | | | – | | | | – | | | | 8,453 | |
Other | | | – | | | | 151 | | | | (465 | ) | | | 3 | | | | (311 | ) |
Decrease (increase) in assets: | | | | | | | | | | | | | | | | | | | | |
Accounts receivable | | | 3,033 | | | | (97,572 | ) | | | (1,992 | ) | | | (21 | ) | | | (96,552 | ) |
Inventories | | | – | | | | (3,503 | ) | | | (113,667 | ) | | | 304 | | | | (116,866 | ) |
Leased railcars for syndication | | | – | | | | (21,857 | ) | | | 1,018 | | | | – | | | | (20,839 | ) |
Other | | | 4,265 | | | | 3,181 | | | | 338 | | | | 1,079 | | | | 8,863 | |
Increase (decrease) in liabilities: | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued liabilities | | | 394 | | | | 36,161 | | | | 94,096 | | | | 22 | | | | 130,673 | |
Deferred revenue | | | (155 | ) | | | (4,154 | ) | | | (978 | ) | | | – | | | | (5,287 | ) |
| |
Net cash provided by (used in) operating activities | | | 23,433 | | | | 4,676 | | | | 1,104 | | | | (63,465 | ) | | | (34,252 | ) |
| |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | | |
Proceeds from sales of equipment | | | – | | | | 18,730 | | | | – | | | | – | | | | 18,730 | |
Capital expenditures | | | (1,996 | ) | | | (65,140 | ) | | | (17,168 | ) | | | 2 | | | | (84,302 | ) |
Decrease (increase) in restricted cash | | | – | | | | 412 | | | | – | | | | – | | | | 412 | |
Investment in and net advances to unconsolidated affiliates | | | (57,373 | ) | | | (8,420 | ) | | | – | | | | 63,463 | | | | (2,330 | ) |
Intercompany advances | | | (1,334 | ) | | | – | | | | – | | | | 1,334 | | | | – | |
Other | | | – | | | | 61 | | | | (1,835 | ) | | | – | | | | (1,774 | ) |
| |
Net cash provided by (used in) investing activities | | | (60,703 | ) | | | (54,357 | ) | | | (19,003 | ) | | | 64,799 | | | | (69,264 | ) |
| |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | | |
Net changes in revolving notes with maturities of 90 days or less | | | 60,000 | | | | – | | | | 11,625 | | | | – | | | | 71,625 | |
Proceeds from revolving notes with maturities longer than 90 days | | | – | | | | – | | | | 25,159 | | | | – | | | | 25,159 | |
Repayment of revolving notes with maturities longer than 90 days | | | – | | | | – | | | | (10,000 | ) | | | – | | | | (10,000 | ) |
Intercompany advances | | | (55,401 | ) | | | 52,806 | | | | 3,929 | | | | (1,334 | ) | | | – | |
Proceeds from issuance of notes payable | | | 230,000 | | | | – | | | | 1,250 | | | | – | | | | 231,250 | |
Debt issuance costs | | | (11,469 | ) | | | – | | | | – | | | | | | | | (11,469 | ) |
Repayments of notes payable | | | (306,750 | ) | | | (4,206 | ) | | | (404 | ) | | | – | | | | (311,360 | ) |
Proceeds from equity offering | | | 63,180 | | | | – | | | | – | | | | – | | | | 63,180 | |
Expenses from equity offering | | | (420 | ) | | | – | | | | – | | | | – | | | | (420 | ) |
Other | | | 26 | | | | – | | | | – | | | | – | | | | 26 | |
| |
Net cash provided by (used in) financing activities | | | (20,834 | ) | | | 48,600 | | | | 31,559 | | | | (1,334 | ) | | | 57,991 | |
| |
Effect of exchange rate changes | | | – | | | | 751 | | | | (3,868 | ) | | | – | | | | (3,117 | ) |
Increase (decrease) in cash and cash equivalents | | | (58,104 | ) | | | (330 | ) | | | 9,792 | | | | – | | | | (48,642 | ) |
Cash and cash equivalents | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | 91,472 | | | | 859 | | | | 6,533 | | | | – | | | | 98,864 | |
| |
End of period | | $ | 33,368 | | | $ | 529 | | | $ | 16,325 | | | $ | – | | | $ | 50,222 | |
| |