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

Exhibit 99.1

News Release

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

For release: January 6, 2021 6:00 a.m. EST Contact:         Lorie Tekorius, Investor Relations                       Justin Roberts, Investor Relations                       Ph: 503-684-7000

Greenbrier Reports First Quarter Results

~ Strong liquidity position ~

~ $80 million reduction of debt in Q1 ~

~ Orders for 2,900 railcars results in diversified backlog with estimated value of $2.35 billion ~

~ Challenging market environment produced a net loss attributable to Greenbrier of $10 million ~

Lake Oswego, Oregon, January 6, 2021 – The Greenbrier Companies, Inc. (NYSE: GBX) (“Greenbrier”), a leading international supplier of equipment and services to global freight transportation markets, today reported financial results for its first fiscal quarter ended November 30, 2020.

First Quarter Highlights

• Liquidity of $810 million, including $725 million in cash and $85 million of available borrowing capacity. Combined with $150 million of additional initiatives in progress totals $960 million.

• Diversified new railcar backlog as of November 30, 2020 was 23,900 units with an estimated value of $2.35 billion, including orders for 2,900 railcars valued at approximately $260 million received during the quarter. Deliveries in the quarter were 3,100 units, representing a nearly 1.0x book-to-bill.

• Net loss attributable to Greenbrier for the quarter was $10 million, or $0.30 per diluted share, on revenue of $403 million.

• Adjusted EBITDA for the quarter was $23 million, or 5.8% of revenue.

• Board declares a quarterly dividend of $0.27 per share, payable on February 16, 2021 to shareholders as of January 26, 2021 representing Greenbrier’s 27^th consecutive dividend.

• Board extends $100 million share repurchase program through January 2023.

William A. Furman, Chairman & CEO commented, “Greenbrier remains focused on sustaining a high level of liquidity and carefully managing our manufacturing footprint in order to continue to generate operating cash flow. Consistent with these goals, we ended the quarter with a strong cash position while meaningfully lowering our debt during the quarter. Our prior cost reduction initiatives, combined with inventory and syndication activity, produced solid cash flow in the quarter. Although a challenging operating environment persists at least through the first half of fiscal 2021, our $2.35 billion backlog provides a baseload for our manufacturing operations and visibility into forward production requirements. We will continue to adjust our manufacturing footprint based on our outlook, while also ensuring we do not constrain our ability to scale capacity as demand increases. New order inquiries continue as rail traffic increases and velocity declines.

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Greenbrier Reports First Quarter Results (Cont.) Page 2

This positions us well for the market improvements we expect later in calendar 2021. Finally, our strategic actions over the past two years, particularly the acquisition of ARI in the U.S., have delivered results. We have reduced our costs and secured our positon as a market leader on three continents, especially in our core North American market.”

Business Update & Outlook

Greenbrier continues to operate safely and efficiently as we execute our COVID-19 response plan. Protecting employees within the work environment remains our top priority. Community spread is increasing in many areas requiring continued vigilance. Greenbrier maintains a low incident rate of COVID-19 among our employees by adhering to CDC-recommended preventative and remedial actions across the company. We also take instant action to prevent spread at the first signs of any infection.

In light of the consequences of the pandemic and an associated economic downturn, preserving the financial health of Greenbrier is imperative. Maintaining cash flow and liquidity are essential components of Greenbrier’s current operating strategy. We have been very successful in this regard. Our diversified $2.35 billion backlog provides a baseload of activity as we gain greater visibility into customer needs as the year unfolds.

Greenbrier’s scale and capabilities have significantly broadened since the Great Recession, a little more than a decade ago. Our backlog today is more than five times larger than it was as of the end of 2010. Our stronger market position is reflected in our share of North American industry railcar orders in the first nine months of calendar year 2020 and in the diverse types of railcars we are building. In Europe, broad macroeconomic reforms to address climate change are ushering in an era of modal shift for freight as the continent moves from polluting and congested road travel to clean and efficient rail service. This should generate significant market growth in the years to come. Regulatory-driven freight wagon demand in Europe supplements the increase in commodity-driven and replacement freight wagon demand that typically gathers momentum in a recovering economy. On three continents, Greenbrier is well-positioned for both the present and the future with a strong balance sheet and a streamlined manufacturing footprint that we can scale as our markets return to higher demand levels.

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Greenbrier Reports First Quarter Results (Cont.) Page 3

Financial Summary

	Q1 FY21			Q4 FY20			Sequential Comparison – Main Drivers
Revenue	$	403.0M		$	636.4M		45% fewer deliveries due to weak demand environment
Gross margin		10.1	%		10.5	%	Fewer deliveries partially offset by operating efficiencies in NA Manufacturing
Selling and administrative	$	43.7M		$	46.3M		Continuing cost reduction initiatives result in lower employee-related and discretionary expenses
Adjusted EBITDA	$	23.2M		$	55.7M		Lower operating earnings
Effective tax rate		(55.5	%)		21.3	%	Tax benefit from favorable discrete items related to foreign currency fluctuations
Net earnings attributable to noncontrolling interest	($	3.3M	)	($	7.8M	)	Lower profitability because of fewer deliveries at GIMSA joint venture
Adjusted net earnings (loss) attributable to Greenbrier	($	10.0M	)	$	5.5M	(1)	Lower gross margin reflecting fewer deliveries partially offset by income tax benefit and lower selling & administrative expense
Adjusted diluted EPS	($	0.30	)	$	0.16	(1)

⁽¹⁾  Excludes expense of $5.6 million ($0.16 per share), net of tax and noncontrolling interest, associated with ARI integration related expenses and severance expenses.

Segment Summary

	Q1 FY21			Q4 FY20			Sequential Comparison – Main Drivers
Manufacturing
Revenue	$	308.7M		$	549.7M		Fewer deliveries reflecting weak demand environment
Gross margin		9.0	%		9.4	%	Operating efficiencies from cost reduction initiatives partially mitigate lower production rates
Operating margin (1)		3.1	%		5.4	%	Lower gross margin partially offset by lower selling & administrative expense
Deliveries (2)		2,700			4,900
Wheels, Repair & Parts
Revenue	$	65.6M		$	64.8M		Increased scrap pricing partially offset by continued volume pressure
Gross margin		3.9	%		6.0	%	Volume pressure and operating inefficiencies from weak demand environment
Operating margin (1)		(0.3	)%		1.3	%
Leasing & Services
Revenue	$	28.7M		$	22.0M		Higher externally sourced syndication activity and lease income
Gross margin		35.8	%		53.2	%	Externally sourced syndication activity reduces gross margin % although generating positive gross margin dollars; Excluding this activity, gross margin % was 47.5%
Operating margin (1) (3)		20.5	%		29.7	%	Lower gross margin partially offset by lower selling & administrative expense
Fleet utilization		93.3	%		90.4	%

⁽¹⁾  See supplemental segment information on page 10 for additional information.

⁽²⁾  Excludes Brazil deliveries which are not consolidated into manufacturing revenue and margins.

⁽³⁾  Includes Net gain on disposition of equipment, which is excluded from gross margin.

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Greenbrier Reports First Quarter Results (Cont.) Page 4

Conference Call

Greenbrier will host a teleconference to discuss its first quarter 2021 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. Teleconference details are as follows:

• January 6, 2021

• 8:00 a.m. Pacific Standard Time

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

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

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

About Greenbrier

Greenbrier, headquartered in Lake Oswego, Oregon, is a leading international supplier of equipment and services to global freight transportation markets. Greenbrier designs, builds and markets freight railcars and marine barges in North America. Greenbrier Europe is an end-to-end freight railcar manufacturing, engineering and repair business with operations in Poland, Romania and Turkey that serves customers across Europe and in the nations of the Gulf Cooperation Council. Greenbrier builds freight railcars and rail castings in Brazil through two separate strategic partnerships. We are a leading provider of freight railcar wheel services, parts, repair, refurbishment and retrofitting services in North America through our wheels, repair & parts business unit. Greenbrier offers railcar management, regulatory compliance services and leasing services to railroads and related transportation industries in North America. Through unconsolidated joint ventures, we produce industrial and rail castings, and other components. Greenbrier owns a lease fleet of 8,400 railcars and performs management services for 407,000 railcars. Learn more about Greenbrier at www.gbrx.com.

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Greenbrier Reports First Quarter Results (Cont.) Page 5

THE GREENBRIER COMPANIES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, unaudited)

	November 30, 2020		August 31, 2020		May 31, 2020		February 29, 2020		November 30, 2019
Assets
Cash and cash equivalents	$	724,547	$	833,745	$	735,258	$	169,899	$	253,602
Restricted cash		8,547		8,342		8,704		8,569		8,648
Accounts receivable, net		240,668		239,597		261,629		326,229		313,786
Inventories		490,282		529,529		675,442		709,115		733,806
Leased railcars for syndication		51,087		107,671		136,144		255,073		135,319
Equipment on operating leases, net		445,542		350,442		355,841		385,974		396,187
Property, plant and equipment, net		696,333		711,524		719,155		723,326		730,730
Investment in unconsolidated affiliates		72,254		72,354		75,508		79,082		85,141
Intangibles and other assets, net		186,509		190,322		181,315		160,709		162,089
Goodwill		130,315		130,308		130,035		129,684		129,468
	$	3,046,084	$	3,173,834	$	3,279,031	$	2,974,660	$	2,948,776
Liabilities and Equity
Revolving notes	$	276,248	$	351,526	$	416,535	$	37,196	$	29,502
Accounts payable and accrued liabilities		434,138		463,880		488,969		499,898		527,789
Deferred income taxes		10,120		7,701		4,354		9,173		9,417
Deferred revenue		36,916		42,467		63,536		70,869		59,657
Notes payable, net		797,089		804,088		806,919		811,860		817,830
Contingently redeemable noncontrolling interest		30,711		31,117		30,611		30,782		31,723
Total equity – Greenbrier		1,280,407		1,293,043		1,291,221		1,286,472		1,281,808
Noncontrolling interest		180,455		180,012		176,886		201,410		191,050
Total equity		1,460,862		1,473,055		1,468,107		1,487,882		1,472,858
	$	3,046,084	$	3,173,834	$	3,279,031	$	2,947,660	$	2,948,776

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Greenbrier Reports First Quarter Results (Cont.) Page 6

THE GREENBRIER COMPANIES, INC.

CONSOLIDATED STATEMENTSOF OPERATIONS

(In thousands, except per share amounts, unaudited)

	Three Months Ended November 30,
	2020			2019
Revenue
Manufacturing	$	308,722		$	657,367
Wheels, Repair & Parts		65,556			86,608
Leasing & Services		28,711			25,384
		402,989			769,359
Cost of revenue
Manufacturing		280,890			581,912
Wheels, Repair & Parts		62,984			81,892
Leasing & Services		18,444			13,366
		362,318			677,170
Margin		40,671			92,189
Selling and administrative		43,707			54,364
Net gain on disposition of equipment		(922	)		(3,959	)
Earnings (loss) from operations		(2,114	)		41,784
Other costs
Interest and foreign exchange		11,103			12,852
Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates		(13,217	)		28,932
Income tax benefit (expense)		7,332			(5,994	)
Earnings (loss) before earnings (loss) from unconsolidated affiliates		(5,885	)		22,938
Earnings (loss) from unconsolidated affiliates		(744	)		1,073
Net earnings (loss)		(6,629	)		24,011
Net earnings attributable to noncontrolling interest		(3,343	)		(16,342	)
Net earnings (loss) attributable to Greenbrier	$	(9,972	)	$	7,669
Basic earnings (loss) per common share	$	(0.30	)	$	0.24
Diluted earnings (loss) per common share	$	(0.30	)	$	0.23
Weighted average common shares
Basic		32,723			32,629
Diluted		32,723			33,284
Dividends declared per common share	$	0.27		$	0.25

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Greenbrier Reports First Quarter Results (Cont.) Page 7

THE GREENBRIER COMPANIES, INC.

CONSOLIDATED STATEMENTSOF CASH FLOWS

(In thousands, unaudited)

	Three Months Ended November 30,
	2020			2019
Cash flows from operating activities:
Net earnings (loss)	$	(6,629	)	$	24,011
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:
Deferred income taxes		2,338			(6,515	)
Depreciation and amortization		26,046			29,335
Net gain on disposition of equipment		(922	)		(3,959	)
Accretion of debt discount		1,419			1,350
Stock based compensation expense		4,435			3,157
Noncontrolling interest adjustments		(1,271	)		1,736
Other		560			(391	)
Decrease (increase) in assets:
Accounts receivable, net		(6,377	)		58,488
Inventories		13,404			(69,662	)
Leased railcars for syndication		6,222			(13,132	)
Other assets		2,224			(37,304	)
Increase (decrease) in liabilities:
Accounts payable and accrued liabilities		(27,257	)		(47,421	)
Deferred revenue		(5,521	)		(10,012	)
Net cash provided by (used in) operating activities		8,671			(70,319	)
Cash flows from investing activities:
Proceeds from sales of assets		8,691			27,463
Capital expenditures		(38,604	)		(23,216	)
Investment in and advances to/repayments from unconsolidated affiliates		4,526			(1,500	)
Cash distribution from unconsolidated affiliates and other		488			4,452
Net cash provided by (used in) investing activities		(24,899	)		7,199
Cash flows from financing activities:
Net changes in revolving notes with maturities of 90 days or less		(9,738	)		2,399
Proceeds from revolving notes with maturities longer than 90 days		110,000			—
Repayments of revolving notes with maturities longer than 90 days		(175,000	)		—
Repayments of notes payable		(8,908	)		(9,749	)
Debt issuance costs		—			(4	)
Dividends		(9,180	)		(343	)
Cash distribution to joint venture partner		(2,810	)		(4,531	)
Tax payments for net share settlement of restricted stock		(2,337	)		(1,870	)
Net cash used in financing activities		(97,973	)		(14,098	)
Effect of exchange rate changes		5,208			981
Decrease in cash and cash equivalents and restricted cash		(108,993	)		(76,237	)
Cash and cash equivalents and restricted cash
Beginning of period		842,087			338,487
End of period	$	733,094		$	262,250
Balance Sheet Reconciliation:	$	724,547 8,547		$	253,602 8,648
Cash and cash equivalents
Restricted cash
Total cash and cash equivalents and restricted cash as presented above	$	733,094		$	262,250

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Greenbrier Reports First Quarter Results (Cont.) Page 8

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

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

Reconciliation of Net earnings (loss) to Adjusted EBITDA

	Three Months Ended
	November 30, 2020			August 31, 2020
Net earnings (loss)	$	(6,629	)	$	7,691
Interest and foreign exchange		11,103			10,596
Income tax expense (benefit)		(7,332	)		2,306
Depreciation and amortization		26,046			27,398
Severance expense		—			5,919
ARI integration related costs		—			1,750
Adjusted EBITDA	$	23,188		$	55,660

	Three Months Ended
	November 30, 2020
Backlog Activity (units) (1)
Beginning backlog		24,600
Orders received		2,900
Production held as Leased railcars for syndication		(700	)
Production sold directly to third parties		(2,900	)
Ending backlog		23,900
Delivery Information (units) (1)
Production sold directly to third parties		2,900
Sales of Leased railcars for syndication		200
Total deliveries		3,100

⁽¹⁾  Includes Greenbrier-Maxion, our Brazilian railcar manufacturer, which is accounted for under the equity method

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Greenbrier Reports First Quarter Results (Cont.) Page 9

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

(In thousands, except per share amounts, unaudited)

Operating Results by Quarter for 2020 are as follows:

	First			Second			Third			Fourth			Total
Revenue
Manufacturing	$	657,367		$	489,943		$	653,007		$	549,654		$	2,349,971
Wheels, Repair & Parts		86,608			91,225			82,024			64,813			324,670
Leasing & Services		25,384			42,680			27,526			21,958			117,548
		769,359			623,848			762,557			636,425			2,792,189
Cost of revenue
Manufacturing		581,912			422,309			562,793			498,155			2,065,169
Wheels, Repair & Parts		81,892			84,373			75,001			60,923			302,189
Leasing & Services		13,366			30,830			17,232			10,272			71,700
		677,170			537,512			655,026			569,350			2,439,058
Margin		92,189			86,336			107,531			67,075			353,131
Selling and administrative expense		54,364			54,597			49,494			46,251			204,706
Net gain on disposition of equipment		(3,959	)		(6,697	)		(8,775	)		(573	)		(20,004	)
Earnings from operations		41,784			38,436			66,812			21,397			168,429
Other costs
Interest and foreign exchange		12,852			12,609			7,562			10,596			43,619
Earnings before income tax and earnings (loss) from unconsolidated affiliates		28,932			25,827			59,250			10,801			124,810
Income tax expense		(5,994	)		(7,463	)		(24,421	)		(2,306	)		(40,184	)
Earnings before earnings (loss) from unconsolidated affiliates		22,938			18,364			34,829			8,495			84,626
Earnings (loss) from unconsolidated affiliates		1,073			1,651			1,040			(804	)		2,960
Net earnings		24,011			20,015			35,869			7,691			87,586
Net earnings attributable to noncontrolling interest		(16,342	)		(6,386	)		(8,097	)		(7,794	)		(38,619	)
Net earnings (loss) attributable to Greenbrier	$	7,669		$	13,629		$	27,772		$	(103	)	$	48,967
Basic earnings per common share (1)	$	0.24		$	0.42		$	0.85		$	(0.00	)	$	1.50
Diluted earnings per common share (1)	$	0.23		$	0.41		$	0.83		$	(0.00	)	$	1.46
Dividends declared per common share	$	0.25		$	0.27		$	0.27		$	0.27		$	1.06

⁽¹⁾  Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated by including the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved.

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Greenbrier Reports First Quarter Results (Cont.) Page 10

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

(In thousands, unaudited)

Segment Information

Three months ended November 30, 2020:

	Revenue								Earnings (loss) from operations
	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	308,722	$	20,591		$	329,313		$	9,686		$	2,505		$	12,191
Wheels, Repair & Parts		65,556		301			65,857			(200	)		(9	)		(209	)
Leasing & Services		28,711		4,665			33,376			5,890			4,285			10,175
Eliminations		—		(25,557	)		(25,557	)		—			(6,781	)		(6,781	)
Corporate		—		—			—			(17,490	)		—			(17,490	)
	$	402,989	$	—		$	402,989		$	(2,114	)	$	—		$	(2,114	)

Three months ended August 31, 2020:

	Revenue								Earnings (loss) from operations
	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	549,654	$	1,683		$	551,337		$	29,695		$	(19	)	$	29,676
Wheels, Repair & Parts		64,813		95			64,908			813			3			816
Leasing & Services		21,958		10,898			32,856			6,520			10,528			17,048
Eliminations		—		(12,676	)		(12,676	)		—			(10,512	)		(10,512	)
Corporate		—		—			—			(15,631	)		—			(15,631	)
	$	636,425	$	—		$	636,425		$	21,397		$	—		$	21,397

	Total assets
	November 30, 2020		August 31, 2020
Manufacturing	$	1,264,616	$	1,301,715
Wheels, Repair & Parts		274,534		271,862
Leasing & Services		758,820		739,025
Unallocated		748,114		861,232
	$	3,046,084	$	3,173,834

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Greenbrier Reports First Quarter Results (Cont.) Page 11

THE GREENBRIER COMPANIES, INC.

SUPPLEMENTAL INFORMATION

(In thousands, except per share amounts, unaudited)

Reconciliation of common shares outstanding

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

	Three Months Ended
	November 30, 2020		August 31, 2020
Weighted average basic common shares outstanding (1)		32,723		32,658
Dilutive effect of convertible notes (2)		—		—
Dilutive effect of restricted stock units (3)		—		—
Weighted average diluted common shares outstanding		32,723		32,658

⁽¹⁾ Restricted stock grants and restricted stock units that are considered participating securities, 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 2.875% Convertible notes issued in February 2017 and the 2.25% Convertible notes issued in July 2019 were excluded from the share calculations due to a net loss in each period.

⁽³⁾ Restricted stock units that are not considered participating securities and restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position.

Reconciliation of Net earnings (loss) attributable to Greenbrier to Adjusted net earnings (loss) attributable to Greenbrier

	Three Months Ended
	November 30, 2020			August 31, 2020
Net earnings (loss) attributable to Greenbrier	$	(9,972	)	$	(103	)
ARI integration related costs, net of tax (1)		—			1,936
Severance expense, net of tax & noncontrolling interest (2)		—			3,636
Adjusted net earnings (loss) attributable to Greenbrier	$	(9,972	)	$	5,469

⁽¹⁾ Net of tax of $620.

⁽²⁾ Net of tax and noncontrolling interest of $2,283.

Reconciliation of Diluted earnings (loss) per share to Adjusted diluted earnings (loss) per share

	Three Months Ended
	November 30, 2020			August 31, 2020
Diluted earnings (loss) per share	$	(0.30	)	$	0.00
ARI integration related costs, net of tax		—			0.06
Severance expense, net of tax & noncontrolling interest		—			0.10
Adjusted diluted earnings (loss) per share	$	(0.30	)	$	0.16
Weighted average diluted shares used to calculate Adjusted diluted earnings (loss) per share		32,723			33,519

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Greenbrier Reports First Quarter Results (Cont.) Page 12

“SAFE HARBOR” STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This press release may contain forward-looking statements, including any statements that are not purely statements of historical fact. Greenbrier uses words, and variations of words, such as “adjust,” “align,” “believe,” “continue,” “ensure,” “focus,” “maintain,” “managing,” “target,” “will,” “working,” and similar expressions to identify forward-looking statements. These forward-looking statements include, without limitation, statements about backlog, and future liquidity and cash flow as well as other information regarding future performance and strategies and appear throughout this press release including in the headlines and the section “Business Update & Outlook.” 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 the results contemplated by the forward-looking statements. Factors that might cause such a difference include, but are not limited to, the following. (1) We are unable to predict when, how, or with what magnitude COVID-19 governmental reaction to the pandemic, and related economic disruptions will negatively impact our business: we may be prevented from operating our facilities; the operations of our customers may be disrupted increasing the likelihood that our customers may attempt to delay, defer or cancel orders, or cease to operate as going concerns; the operations of our suppliers may be disrupted; our indebtedness may increase; we may breach the covenants in our credit agreement; the market price of our common stock may drop or remain volatile; we may incur significant employee health care costs under our self-insurance programs. The longer the pandemic continues, the more likely that negative impacts on our business will occur, some of which we cannot now foresee. (2) Our backlog of railcar units and marine vessels is not necessarily indicative of future results of operations. Certain orders in backlog are subject to customary documentation which may not occur. Customers may attempt to cancel or modify orders or refuse to accept and pay for products. The likelihood of cancellations, modifications, rejection and non-payment for our products generally increases during periods of market weakness. The timing of converting backlog to revenue is also materially impacted by our decision whether to lease railcars, sell railcars, or syndicate railcars with a lease attached to an investor. More information on potential factors that could cause our results to differ from our forward-looking statements is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic report on Form 10-K and subsequent report on 10-Q. Except as otherwise required by law, the Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s opinions only as of the date hereof.

Adjusted Financial Metric Definitions

Adjusted EBITDA, Adjusted net earnings (loss) attributable to Greenbrier and Adjusted diluted EPS are not financial measures under generally accepted accounting principles (GAAP). These metrics are performance measurement tools used by rail supply companies and Greenbrier. You should not consider these metrics in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because these metrics are not a measure of financial performance under GAAP and are susceptible to varying calculations, the measures presented may differ from and may not be comparable to similarly titled measures used by other companies.

We define Adjusted EBITDA as Net earnings (loss) before Interest and foreign exchange, Income tax benefit (expense), Depreciation and amortization and excluding the impact associated with items we do not believe are indicative of our core business or which affect comparability. We believe the presentation of Adjusted EBITDA provides useful information as it excludes the impact of financing, foreign exchange, income taxes and the accounting effects of capital spending. These items may vary for different companies for reasons unrelated to the overall operating performance of a company’s core business. We believe this assists in comparing our performance across reporting periods.

Adjusted net earnings (loss) attributable to Greenbrier and Adjusted diluted EPS excludes the impact associated with items we do not believe are indicative of our core business or which affect comparability. We believe this assists in comparing our performance across reporting periods.

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