The Greenbrier Companies, Inc. (NYSE:GBX) Q1 2020 Earnings Conference Call - Final Transcript

Jan 08, 2020 • 08:00 am ET


The Greenbrier Companies, Inc. (NYSE:GBX) Q1 2020 Earnings Conference Call - Final Transcript


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Hello and welcome to The Greenbrier Companies First Quarter Fiscal Year 2020 Earnings Conference Call. Following today's presentation, we will conduct a question-and-answer session. [Operator Instructions] At the request of Greenbrier Companies, this conference call is being recorded for instant replay purposes.

At this time, I would like to turn the conference over to Mr. Justin Roberts, Vice President and Treasurer. Mr. Roberts, you may begin.

Justin M. Roberts

Thank you, Sarah. Good morning everyone and welcome to our first quarter of fiscal 2020 conference call. On today's call, I'm joined by Greenbrier's Chairman and CEO, Bill Furman; Lorie Tekorius, President and COO; and Adrian Downes, Senior Vice President and CFO. They will discuss the results for the first quarter and fiscal 2020. Following our introductory remarks, we will open up the call for questions.

In addition to the press release issued this morning, which includes supplemental data additional financial information and key metrics can be found in a slide presentation posted today on the IR section of our website. Also, if you're in Portland today, our Annual Meeting will be occurring today at 2:00 PM Pacific at The Benson Hotel. A link to a webcast of the meeting is also live on our website and you can follow along to the activities and events as well.

Matters discussed on today's conference call include forward-looking statements within the meaning of the Private Securities and Litigation Reform Act of 1995. Throughout our discussion today, we will describe some of the important factors that could cause Greenbrier's actual results in 2020 and beyond to differ materially from those expressed in any forward-looking statement made by or on behalf of Greenbrier.

And with that, I'll hand it over to Bill.

William A. Furman

Thank you, Justin, and good morning everyone. As we enter 2020, Greenbrier enters its fifth decade of operations and we're operating at a much larger scale in the very small leasing company founded nearly 40 years ago with only 300 railcars in Huntington, West Virginia. Just in the last year, we've achieved much greater scale through the acquisition of the ARI manufacturing assets, building on our various initiatives in international markets.

In normalized markets, Greenbrier with its present platform should be capable of reaching $4 billion in annual revenue and perhaps more. Of course, we have to get margin and financial performance to match that revenue, but we believe we are firmly on the right track to do so. Our top objectives for calendar 2020 is to continue to integrate and extract value from the growth over the last two years. In its early stages, growth often results in uneven short-term financial performance. We ask our shareholders to be patient, while we go through this process. And all of this can be expected, we are dedicated with an action plan to improve operating performance and align financial metrics to our increased scale, all to produce shareholder value.

Greenbrier, as you know, has a four-part strategy. First, we are strengthening our North American core markets. Setting aside ARI