The Greenbrier Companies, Inc. (GBX) 8-K Greenbrier Reports Third Quarter Results

Exhibit 99.1

News Release

One Centerpointe Drive Suite 200 Lake Oswego, Oregon 97035 503-684-7000                             www.gbrx.com

For release: July 1, 2015, 6:00 a.m. EDT	Contact:	Mark Rittenbaum
		Lorie Tekorius
		503-684-7000

Greenbrier Reports Third Quarter Results

~ Posts EPS of $1.33, which includes $0.16 of non-recurring costs ~

~ Aggregate gross margin expands to 20.9% ~

~ Backlog grows to $4.86 billion; sixth consecutive quarter of backlog growth ~

Lake Oswego, Oregon, July 1, 2015 –The Greenbrier Companies, Inc. (NYSE: GBX) today reported financial results for its third fiscal quarter ended May 31, 2015.

Third Quarter Highlights

• Net earnings attributable to Greenbrier for the quarter were $42.8 million, or $1.33 per diluted share, on record revenue of $714.6 million.

• Results for the third quarter include non-recurring costs of approximately $5.2 million after-tax, or $0.16 per diluted share. These costs include professional fees and other transaction costs associated with a potential acquisition, for which discussions terminated in June, and our advocacy of new tank car safety regulations. In addition, a significant decline in scrap metal prices adversely affected our wheel services business by $1.1 million after-tax, or $0.03 per diluted share.

• Adjusted EBITDA for the quarter was a record $116.3 million, or 16.3% of revenue.

• New railcar backlog as of May 31, 2015 was 45,100 units with an estimated value of $4.86 billion (average unit sale price of $108,000), compared to 46,000 units with an estimated value of $4.78 billion (average unit sale price of $104,000) as of February 28, 2015.

• Diversified orders for 5,300 new railcars valued at $640 million were received during the quarter.

• New railcar deliveries totaled 5,700 units for the quarter, compared to 5,200 units for the quarter ended February 28, 2015.

• Marine backlog as of May 31, 2015 was approximately $70 million.

• Board declares a quarterly dividend of $0.15 per share payable on August 5, 2015 to shareholders of record as of July 15, 2015.

• Repurchased 28,363 shares of common stock at a cost of $1.5 million during the quarter.

Progress on Longer Term Financial Goals

• Aggregate gross margin expanded to 20.9%, compared to 19.9% in the prior quarter, reaching the goal of at least 20% gross margin by the second half of fiscal 2016.

• We remain on track to reach the goal of at least 25% ROIC by the second half of fiscal 2016. Annualized ROIC of 21.3% reflects record operating results tempered by working capital needs associated with higher production and syndication volumes, and planned capital expenditure programs.

• Our Net Funded Debt : LTM EBITDA continued to improve to 0.9 times.

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Greenbrier Reports Third Quarter. . .(Cont.) Page 2

William A. Furman, Chairman and CEO, said, “Our diversified and integrated business model continues to pay off, with record revenue, adjusted EBITDA and deliveries this quarter. Aggregate gross margin grew to 20.9%, led by execution from our manufacturing and lease syndication businesses. We achieved our goal of at least 20% aggregate margin a full year ahead of plan despite an abrupt decline in scrap metal prices which adversely affected our wheel services business. Results for the quarter include non-recurring costs of about $5.2 million after-tax, or $0.16 per diluted share, associated with a potential acquisition, for which discussions terminated in June, and advocacy of new tank car safety regulations. Our financial outlook for the year, excluding these non-recurring items, remains within previous guidance.”

“Since the beginning of our fiscal year on September 1, 2014, we have received orders for 29,500 new railcar units valued at $3.0 billion, with approximately 80% of these orders being non-energy related. Our railcar backlog value has grown every quarter since the first quarter of fiscal 2014. The most recent industry data reported for North America is as of March 31, 2015. Our book-to-bill ratio in North America for the 12 months ended March 31, 2015 was 2.6x, nearly 50% higher than 1.8x for the industry as a whole. Our strong commercial performance and diversified product offerings allowed us to capture 43% of all orders placed across the railcar industry in the most recently reported calendar quarter. With deliveries that stretch into 2018, we have a long runway ahead to deliver robust earnings and free cash flow, driving shareholder value. We will continue our balanced approach of reinvesting free cash flow into projects that generate high rates of return, seeking acquisitions in our core competencies and returning capital to shareholders. We remain confident in the long-term strength of our strategy and integrated business model.”

Share Repurchases

We repurchased 28,363 shares of common stock at a cost of $1.5 million during the quarter. Cumulative repurchases from October 31, 2013 through May 31, 2015 aggregate 1,655,587 shares at a cost of $82.9 million, or an average price of $50.05 per share. We have $42.1 million available under our share repurchase program.

Business Outlook

Based on current business trends and industry forecasts, and excluding non-recurring costs of $7.5 million pre-tax, or $0.16 per diluted share from the third quarter, Greenbrier reaffirms previously provided fiscal 2015 annual guidance for Revenue ($2.6 to $2.7 billion), Adjusted EBITDA ($420 to $435 million) and Deliveries (~21,500). Guidance for annual diluted EPS is narrowed to $5.70 to $5.85, excluding non-recurring costs in the third quarter of $0.16 per diluted share.

While gross margins continue to increase overall, management does not believe this track will be linear.

As noted in the “Safe Harbor” statement, there are risks to achieving this guidance. Certain orders and backlog in this release are subject to customary documentation and completion of terms.

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Greenbrier Reports Third Quarter. . .(Cont.) Page 3

Financial Summary

	Q3 FY15	Q2 FY15	Sequential Comparison – Main Drivers
Revenue	$714.6M	$630.1M	Up 13.4% primarily due to increased deliveries
Gross margin	20.9%	19.9%	Up 100 bps due to favorable product mix and pricing and improved production efficiencies in the manufacturing segment
Selling and administrative expense	$45.6M	$32.9M	Up 38.6% primarily due to fees and transaction costs associated with a potential acquisition, advocacy of new tank car regulations, and other costs as a result of operating at higher levels of activity
Gain on disposition of equipment	$0.7M	$0.1M	Timing of sales fluctuates and is opportunistic, typically may range from $1.0M to $3.0M per quarter
Adjusted EBITDA	$116.3M	$102.7M	Up 13.2% driven by higher deliveries and margins
Effective tax rate	30.7%	32.4%	Reflects a change in the geographic mix of earnings and in GIMSA JV earnings as well as an update to the annual effective rate to 31.5%
Net earnings attributable to noncontrolling interest	$27.5M	$10.7M	Driven by an increase in deliveries and higher margin from our GIMSA JV
Net earnings	$42.8M	$50.4M
Diluted EPS	$1.33	$1.57

Segment Summary

	Q3 FY15			Q2 FY15			Sequential Comparison – Main Drivers
Manufacturing
Revenue	$	593.4M		$	505.2M		Up 17.5% primarily due to higher deliveries
Gross margin		21.5	%		20.2	%	Up 130 bps due to favorable product mix and pricing, and improved efficiencies
Operating margin (1)		19.5	%		18.0	%
Deliveries		5,700			5,200
Wheels & Parts
Revenue	$	97.4M		$	102.6M		Down 5.1% primarily attributable to lower wheel and component volumes
Gross margin		8.0	%		9.6	%	Down 160 bps primarily due to an adverse effect of lower scrap metal prices in our wheels business
Operating margin (1)		5.2	%		7.8	%
Leasing & Services
Revenue	$	23.8M		$	22.3M		Up 6.7% primarily due to higher volume of rent-producing leased railcars for syndication
Gross margin		58.0	%		60.3	%	Down 230 bps due to certain maintenance and transportation costs
Operating margin (1) (2)		45.4	%		44.1	%
Lease fleet utilization		97.6	%		99.5	%

⁽¹⁾  See supplemental segment information on page 11 for additional information.

⁽²⁾  Includes Net gain on disposition of equipment, which is excluded from gross margin.

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Greenbrier Reports Third Quarter. . .(Cont.) Page 4

Conference Call

Greenbrier will host a teleconference to discuss its third quarter 2015 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. Teleconference details are as follows:

• July 1, 2015

• 8:00 a.m. Pacific Daylight Time

• Phone: 1-630-395-0143, Password: “Greenbrier”

• Real-time Audio Access: (“Newsroom” athttp://www.gbrx.com)

Please access the site 10 minutes prior to the start time.

About Greenbrier

Greenbrier, (www.gbrx.com), headquartered in Lake Oswego, Oregon, is a leading supplier of transportation equipment and services to the railroad industry. Greenbrier builds new railroad freight cars in our 4 manufacturing facilities in the U.S. and Mexico and marine barges at our U.S. manufacturing facility. Greenbrier also sells reconditioned wheel sets and provides wheel services at 9 locations throughout the U.S. We recondition, manufacture and sell railcar parts at 4 U.S. sites. Greenbrier is a 50/50 joint venture partner with Watco Companies, LLC in GBW Railcar Services, LLC which repairs and refurbishes freight cars at 33 locations across North America, including 12 tank car repair and maintenance facilities certified by the Association of American Railroads. Greenbrier builds new railroad freight cars and refurbishes freight cars for the European market through our operations in Poland. Greenbrier owns approximately 8,800 railcars, and performs management services for approximately 245,000 railcars.

“SAFE HARBOR” STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This press release may contain forward-looking statements, including statements regarding expected new railcar production volumes and schedules, expected customer demand for the Company’s products and services, plans to increase manufacturing capacity, restructuring plans, new railcar delivery volumes and schedules, growth in demand for the Company’s railcar services and parts business, and the Company’s future financial performance. Greenbrier uses words such as “anticipates,” “believes,” “forecast,” “potential,” “goal,” “contemplates,” “expects,” “intends,” “plans,” “projects,” “hopes,” “seeks,” “estimates,” “strategy,” “could,” “would,” “should,” “likely,” “will,” “may,” “can,” “designed to,” “future,” “foreseeable future” and similar expressions to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to certain risks and uncertainties that could cause actual results to differ materially from in the results contemplated by the forward-looking statements. Factors that might cause such a difference include, but are not limited to, reported backlog and awards are not indicative of our financial results; uncertainty or changes in the credit markets and financial services industry; high levels of indebtedness and compliance with the terms of our indebtedness; write-downs of goodwill, intangibles and other assets in future periods; sufficient availability of borrowing capacity; fluctuations in demand for newly manufactured railcars or failure to obtain orders as anticipated in developing forecasts; loss of one or more significant customers; customer payment defaults or related issues; sovereign risk to contracts, exchange rates or property rights; actual future costs and the availability of materials and a trained workforce; failure to design or manufacture new products or technologies or to achieve certification or market acceptance of new products or technologies; steel or specialty component price fluctuations and availability and scrap surcharges; changes in product mix and the mix between segments; labor disputes, energy shortages or operating difficulties that might disrupt manufacturing operations or the flow of cargo; production difficulties and product delivery delays as a result of, among other matters, inefficiencies associated with expansion or start-up of production lines or increased production rates, changing technologies, transfer of production between facilities or non-performance of alliance partners, subcontractors or

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Greenbrier Reports Third Quarter. . .(Cont.) Page 5

suppliers; ability to obtain suitable contracts for the sale of leased equipment and risks related to car hire and residual values; integration of current or future acquisitions and establishment of joint ventures; succession planning; discovery of defects in railcars or services resulting in increased warranty costs or litigation; physical damage or product or service liability claims that exceed our insurance coverage; train derailments or other accidents or claims that could subject us to legal claims; actions or inactions by various regulatory agencies including potential environmental remediation obligations or changing tank car or other rail car or railroad regulation; and issues arising from investigations of whistleblower complaints; all as may be discussed in more detail under the headings “Risk Factors” and “Forward Looking Statements” in our Annual Report on Form 10-K for the fiscal year ended August 31, 2014, and our other reports on file with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s opinions only as of the date hereof. Except as otherwise required by law, we do not assume any obligation to update any forward-looking statements.

Adjusted EBITDA is not a financial measure under generally accepted accounting principles (GAAP). We define Adjusted EBITDA as Net earnings before Interest and foreign exchange, Income tax expense, Depreciation and amortization. Adjusted EBITDA is a performance measurement tool commonly used by rail supply companies and Greenbrier. You should not consider Adjusted EBITDA in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because Adjusted EBITDA is not a measure of financial performance under GAAP and is susceptible to varying calculations, this measure presented may differ from and may not be comparable to similarly titled measures used by other companies.

Annualized ROIC is calculated by taking year to date Earnings from operations, less cash paid for income taxes, net, which is then annualized and divided by the average balance of the sum of the Revolving notes, plus Notes payable, plus Total equity, less cash in excess of $40 million. The average is calculated based on the quarterly ending balances.

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Greenbrier Reports Third Quarter. . .(Cont.) Page 6

THE GREENBRIER COMPANIES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, unaudited)

	May 31, 2015		February 28, 2015		November 30, 2014		August 31, 2014		May 31, 2014
Assets
Cash and cash equivalents	$	122,783	$	145,512	$	118,958	$	184,916	$	198,492
Restricted cash		8,912		8,722		9,170		20,140		9,468
Accounts receivable, net		214,890		207,488		191,532		199,679		181,850
Inventories		426,655		418,590		372,039		305,656		337,197
Leased railcars for syndication		213,197		198,010		177,221		125,850		96,332
Equipment on operating leases, net		257,962		261,234		264,615		258,848		274,863
Property, plant and equipment, net		285,570		271,977		258,303		243,698		215,942
Investment in unconsolidated affiliates		91,217		71,225		72,342		69,359		12,129
Goodwill		43,265		43,265		43,265		43,265		57,416
Intangibles and other assets, net		62,664		64,386		61,937		65,757		66,883
	$	1,727,115	$	1,690,409	$	1,569,382	$	1,517,168	$	1,450,572
Liabilities and Equity
Revolving notes	$	92,507	$	90,563	$	46,527	$	13,081	$	18,082
Accounts payable and accrued liabilities		405,544		417,844		374,509		383,289		356,541
Deferred income taxes		75,572		77,632		81,808		81,383		79,526
Deferred revenue		24,209		28,287		27,067		20,603		21,153
Notes payable		346,279		441,326		443,303		445,091		447,068
Total equity - Greenbrier		672,396		541,491		519,884		511,390		476,145
Noncontrolling interest		110,608		93,266		76,284		62,331		52,057
Total equity		783,004		634,757		596,168		573,721		528,202
	$	1,727,115	$	1,690,409	$	1,569,382	$	1,517,168	$	1,450,572

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Greenbrier Reports Third Quarter. . .(Cont.) Page 7

THE GREENBRIER COMPANIES, INC.

CONSOLIDATED STATEMENTSOF INCOME

(In thousands, except per share amounts, unaudited)

	Three Months Ended May 31,						Nine Months Ended May 31,
	2015			2014			2015			2014
Revenue
Manufacturing	$	593,376		$	425,583		$	1,478,566		$	1,132,811
Wheels & Parts		97,407			140,663			286,671			390,604
Leasing & Services		23,823			27,039			74,576			62,441
		714,606			593,285			1,839,813			1,585,856
Cost of revenue
Manufacturing		465,658			351,829			1,184,922			969,841
Wheels & Parts		89,645			129,825			259,285			365,740
Leasing & Services		10,017			14,856			32,942			34,090
		565,320			496,510			1,477,149			1,369,671
Margin		149,286			96,775			362,664			216,185
Selling and administrative expense		45,595			34,800			112,223			89,034
Net gain on disposition of equipment		(720	)		(5,619	)		(924	)		(14,686	)
Restructuring charges		—			56			—			1,475
Earnings from operations		104,411			67,538			251,365			140,362
Other costs
Interest and foreign exchange		4,285			5,437			9,355			14,280
Earnings before income tax and earnings from unconsolidated affiliates		100,126			62,101			242,010			126,082
Income tax expense		(30,783	)		(16,303	)		(76,209	)		(36,708	)
Earnings before earnings from unconsolidated affiliates		69,343			45,798			165,801			89,374
Earnings from unconsolidated affiliates		982			298			1,552			272
Net earnings		70,325			46,096			167,353			89,646
Net earnings attributable to noncontrolling interest		(27,514	)		(12,508	)		(41,405	)		(25,083	)
Net earnings attributable to Greenbrier	$	42,811		$	33,588		$	125,948		$	64,563
Basic earnings per common share:	$	1.54		$	1.20		$	4.58		$	2.29
Diluted earnings per common share:	$	1.33		$	1.03		$	3.91		$	2.01
Weighted average common shares:
Basic		27,842			27,956			27,514			28,223
Diluted		33,000			34,001			33,262			34,268
Dividends declared per common share:	$	0.15		$	—		$	0.45		$	—

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Greenbrier Reports Third Quarter. . .(Cont.) Page 8

THE GREENBRIER COMPANIES, INC.

CONSOLIDATED STATEMENTSOF CASH FLOWS

(In thousands, unaudited)

	Nine Months Ended May 31,
	2015			2014
Cash flows from operating activities:
Net earnings	$	167,353		$	89,646
Adjustments to reconcile net earnings to net cash provided by operating activities:
Deferred income taxes		(5,245	)		(6,745	)
Depreciation and amortization		33,258			30,824
Net gain on disposition of equipment		(924	)		(14,686	)
Stock based compensation expense		13,176			6,454
Noncontrolling interest adjustments		20,371			2,953
Other		1,008			388
Increase in assets:
Accounts receivable, net		(8,769	)		(26,226	)
Inventories		(124,906	)		(21,722	)
Leased railcars for syndication		(90,914	)		(25,420	)
Other		(1,666	)		(2,491	)
Increase in liabilities:
Accounts payable and accrued liabilities		23,135			36,507
Deferred revenue		3,680			12,258
Net cash provided by operating activities		29,557			81,740
Cash flows from investing activities:
Proceeds from sales of assets		4,628			39,515
Capital expenditures		(75,892	)		(34,522	)
Decrease (increase) in restricted cash		228			(661	)
Investment in and advances to unconsolidated affiliates		(29,923	)		(1,253	)
Other		715			—
Net cash provided by (used in) investing activities		(100,244	)		3,079
Cash flows from financing activities:
Net change in revolving notes with maturities of 90 days or less		73,000			—
Proceeds from revolving notes with maturities longer than 90 days		42,563			34,674
Repayments of revolving notes with maturities longer than 90 days		(36,137	)		(64,801	)
Proceeds from issuance of notes payable		—			200,000
Repayments of notes payable		(5,504	)		(126,821	)
Debt issuance costs		—			(382	)
Repurchase of stock		(48,451	)		(26,293	)
Dividends		(12,069	)		—
Decrease in restricted cash		11,000			—
Cash distribution to joint venture partner		(12,489	)		(3,109	)
Investment by joint venture partner		—			419
Excess tax benefit from restricted stock awards		2,964			109
Other		(248	)		—
Net cash provided by financing activities		14,629			13,796
Effect of exchange rate changes		(6,075	)		2,442
Increase (decrease) in cash and cash equivalents		(62,133	)		101,057
Cash and cash equivalents
Beginning of period		184,916			97,435
End of period	$	122,783		$	198,492

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Greenbrier Reports Third Quarter. . .(Cont.) Page 9

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

(In thousands, except per share amounts, unaudited)

Operating Results by Quarter for 2015 are as follows:

	First			Second			Third			Total
Revenue
Manufacturing	$	379,949		$	505,241		$	593,376		$	1,478,566
Wheels & Parts		86,624			102,640			97,407			286,671
Leasing & Services		28,485			22,268			23,823			74,576
		495,058			630,149			714,606			1,839,813
Cost of revenue
Manufacturing		316,037			403,227			465,658			1,184,922
Wheels & Parts		76,872			92,768			89,645			259,285
Leasing & Services		14,081			8,844			10,017			32,942
		406,990			504,839			565,320			1,477,149
Margin		88,068			125,310			149,286			362,664
Selling and administrative expense		33,729			32,899			45,595			112,223
Net gain on disposition of equipment		(83	)		(121	)		(720	)		(924	)
Earnings from operations		54,422			92,532			104,411			251,365
Other costs
Interest and foreign exchange		3,141			1,929			4,285			9,355
Earnings before income tax and earnings (loss) from unconsolidated affiliates		51,281			90,603			100,126			242,010
Income tax expense		(16,054	)		(29,372	)		(30,783	)		(76,209	)
Earnings before earnings (loss) from unconsolidated affiliates		35,227			61,231			69,343			165,801
Earnings (loss) from unconsolidated affiliates		755			(185	)		982			1,552
Net earnings		35,982			61,046			70,325			167,353
Net earnings attributable to noncontrolling interest		(3,196	)		(10,695	)		(27,514	)		(41,405	)
Net earnings attributable to Greenbrier	$	32,786		$	50,351		$	42,811		$	125,948
Basic earnings per common share(1)	$	1.19		$	1.86		$	1.54		$	4.58
Diluted earnings per common share(1)	$	1.01		$	1.57		$	1.33		$	3.91

(1) Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes using the treasury stock method when dilutive and the dilutive effect of shares underlying the 2018 Convertible Notes using the “if converted” method in which debt issuance and interest costs, net of tax, were added back to net earnings.

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Greenbrier Reports Third Quarter. . .(Cont.) Page 10

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

(In thousands, except per share amounts, unaudited)

Operating Results by Quarter for 2014 are as follows:

	First			Second			Third			Fourth			Total
Revenue
Manufacturing	$	359,473		$	347,755		$	425,583		$	492,105		$	1,624,916
Wheels & Parts(1)		113,401			136,540			140,663			105,023			495,627
Leasing & Services		17,481			17,921			27,039			20,978			83,419
		490,355			502,216			593,285			618,106			2,203,962
Cost of revenue
Manufacturing		311,440			306,572			351,829			404,167			1,374,008
Wheels & Parts(1)		107,975			127,940			129,825			98,198			463,938
Leasing & Services		9,381			9,853			14,856			9,706			43,796
		428,796			444,365			496,510			512,071			1,881,742
Margin		61,559			57,851			96,775			106,035			322,220
Selling and administrative expense		26,109			28,125			34,800			36,236			125,270
Net gain on disposition of equipment		(3,651	)��		(5,416	)		(5,619	)		(353	)		(15,039	)
Restructuring charges		879			540			56			—			1,475
Gain on contribution to joint venture		—			—			—			(29,006	)		(29,006	)
Earnings from operations		38,222			34,602			67,538			99,158			239,520
Other costs
Interest and foreign exchange		4,744			4,099			5,437			4,415			18,695
Earnings before income tax and earnings (loss) from unconsolidated affiliates		33,478			30,503			62,101			94,743			220,825
Income tax expense		(10,522	)		(9,883	)		(16,303	)		(35,693	)		(72,401	)
Earnings before earnings (loss) from unconsolidated affiliates		22,956			20,620			45,798			59,050			148,424
Earnings (loss) from unconsolidated affiliates		41			(67	)		298			1,083			1,355
Net earnings		22,997			20,553			46,096			60,133			149,779
Net earnings attributable to noncontrolling interest		(7,609	)		(4,966	)		(12,508	)		(12,777	)		(37,860	)
Net earnings attributable to Greenbrier	$	15,388		$	15,587		$	33,588		$	47,356		$	111,919
Basic earnings per common share(2)	$	0.54		$	0.55		$	1.20		$	1.69		$	3.97
Diluted earnings per common share(2)	$	0.49		$	0.50		$	1.03		$	1.43		$	3.44

(1) Wheels & Parts (previously known as Wheels, Repair & Parts) included our repair operations through July 18, 2014, at which time we and Watco, our joint venture partner, contributed our respective repair operations to GBW, an unconsolidated 50/50 joint venture. After July 18, 2014, the results of GBW are included in Earnings (loss) from unconsolidated affiliates as we account for our interest in GBW under the equity method of accounting.

(2) Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes using the treasury stock method when dilutive and the dilutive effect of shares underlying the 2018 Convertible Notes using the “if converted” method in which debt issuance and interest costs, net of tax, were added back to net earnings.

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Greenbrier Reports Third Quarter. . .(Cont.) Page 11

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

(In thousands, unaudited)

Segment Information

Three months ended May 31, 2015:

	Revenue								Earnings (loss) from operations
	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	593,376	$	33		$	593,409		$	115,675		$	—		$	115,675
Wheels & Parts		97,407		7,605			105,012			5,078			607			5,685
Leasing & Services		23,823		11,722			35,545			10,824			11,722			22,546
Eliminations		—		(19,360	)		(19,360	)		—			(12,329	)		(12,329	)
Corporate		—		—			—			(27,166	)		—			(27,166	)
	$	714,606	$	—		$	714,606		$	104,411		$	—		$	104,411

Three months ended February 28, 2015:

	Revenue								Earnings (loss) from operations
	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	505,241	$	81		$	505,322		$	90,876		$	9		$	90,885
Wheels & Parts		102,640		5,934			108,574			7,976			653			8,629
Leasing & Services		22,268		18,627			40,895			9,811			18,627			28,438
Eliminations		—		(24,642	)		(24,642	)		—			(19,289	)		(19,289	)
Corporate		—		—			—			(16,131	)		—			(16,131	)
	$	630,149	$	—		$	630,149		$	92,532		$	—		$	92,532

	Total assets
	May 31, 2015		February 28 2015
Manufacturing	$	697,342	$	663,567
Wheels & Parts		290,363		291,358
Leasing & Services		538,896		516,835
Unallocated		200,514		218,649
	$	1,727,115	$	1,690,409

The results of operations for GBW, which are shown below, are not reflected in the above tables as the investment is accounted for under the equity method of accounting.

	As of and for the Three Months Ended
	May 31, 2015		February 28, 2015
Revenue	$	88,800	$	83,300
Earnings (loss) from operations	$	200	$	(2,000	)
Total assets	$	230,100	$	217,400

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Greenbrier Reports Third Quarter. . .(Cont.) Page 12

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

(In thousands, excluding backlog and delivery units, unaudited)

Reconciliation of Net earnings to Adjusted EBITDA

	Three Months Ended
	May 31, 2015		February 28, 2015
Net earnings	$	70,325	$	61,046
Interest and foreign exchange		4,285		1,929
Income tax expense		30,783		29,372
Depreciation and amortization		10,860		10,348
Adjusted EBITDA	$	116,253	$	102,695

Adjusted EBITDA is not a financial measure under generally accepted accounting principles (GAAP). We define Adjusted EBITDA as Net earnings before interest and foreign exchange, income tax expense, depreciation and amortization. Adjusted EBITDA is a performance measurement tool commonly used by rail supply companies and Greenbrier. You should not consider Adjusted EBITDA in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because Adjusted EBITDA is not a measure of financial performance under GAAP and is susceptible to varying calculations, the Adjusted EBITDA measure presented may differ from and may not be comparable to similarly titled measures used by other companies.

	Three Months Ended May 31, 2015
Backlog Activity (units)
Beginning backlog		46,000
Orders received		5,300
Production held as Leased railcars for syndication		(1,500	)
Production sold directly to third parties		(4,700	)
Ending backlog		45,100
Delivery Information (units)
Production sold directly to third parties		4,700
Sales of Leased railcars for syndication		1,000
Total deliveries		5,700

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Greenbrier Reports Third Quarter. . .(Cont.) Page 13

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

(In thousands, except per share amounts, unaudited)

Reconciliation of common shares outstanding and diluted earnings per share

The shares used in the computation of the Company’s basic and diluted earnings per common share are reconciled as follows:

	Three Months Ended
	May 31, 2015		February 28, 2015
Weighted average basic common shares outstanding(1)		27,842		27,028
Dilutive effect of convertible notes(2)		5,158		6,045
Weighted average diluted common shares outstanding		33,000		33,073

(1) Restricted stock grants and restricted stock units, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position.

(2) The dilutive effect of the 2018 Convertible notes are included in the Weighted average diluted common shares outstanding as they were considered dilutive under the “if converted” method as further discussed below. The dilutive effect of the 2026 Convertible notes are included in the Weighted average diluted common shares outstanding as the average stock price during the period exceeded the conversion price of $48.05.

Diluted earnings per share was calculated using the more dilutive of two approaches. The first approach includes the dilutive effect of shares underlying the 2026 Convertible notes in the share count using the treasury stock method. The second approach supplements the first by including the “if converted” effect of the 2018 Convertible notes issued in March 2011. Under the “if converted method” debt issuance and interest costs, both net of tax, associated with the convertible notes are added back to net earnings and the share count is increased by the shares underlying the convertible notes.

	Three Months Ended
	May 31, 2015		February 28, 2015
Net earnings attributable to Greenbrier	$	42,811	$	50,351
Add back:
Interest and debt issuance costs on the 2018 Convertible notes, net of tax		1,234		1,416
Earnings before interest and debt issuance costs on convertible notes	$	44,045	$	51,767
Weighted average diluted common shares outstanding		33,000		33,073
Diluted earnings per share	$	1.33	$	1.57

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