The Greenbrier Companies, Inc. (NYSE:GBX) Q4 2020 Earnings Conference Call - Final Transcript

Oct 23, 2020 • 11:00 am ET

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The Greenbrier Companies, Inc. (NYSE:GBX) Q4 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
Adrian J. Downes

to continue for the foreseeable future that each is vital to ensuring the ongoing operation of our facilities and our strong liquidity position.

Turning to synergies, we successfully achieved $2.2 million of pretax cost synergies related to the ARI acquisition in the quarter and $14.9 million in the year meeting our previously announced goal. The integration team has done an excellent job in trying circumstances over the last 12 months. We are proud of what has been accomplished so far, but believe we still have significant incremental value to be realized as we identify and implement additional best practices across our manufacturing network. In the quarter, Greenbrier generated $183 million of operating cash flow reflecting continued syndication activity and efficient management of working capital.

For the full year, we generated operating cash flow of $272 million including $405 million in the last six months. Greenbrier's liquidity at August 31 was $920 million with cash of $834 million and available borrowing capacity of $86 million. With projects being concluded, we exceed our $1 billion liquidity and cost savings targets. While we have built a substantial cash balance over the last six months, we will continue to enhance Greenbrier's overall liquidity until we have better visibility on recovery. We have significant cushion in our debt covenants and no significant debt maturities until late calendar 2023.

Greenbrier's board of directors remains committed to a balanced deployment of capital designed to protect the business and simultaneously create long-term shareholder value. Our board believes our dividend programs, enhances shareholder value and attracts investors. Today, we are announcing a dividend of $0.27 per share, which is our 26th consecutive dividend. Based on yesterday's closing price, this represents a yield of approximately 3.3%. With all that has been accomplished across the company and continued vigilance, Greenbrier will emerge from the pandemic and downturn as a stronger company.

And we will now open it up for questions.