Guarantor/Non Guarantor
Exhibit 99.2
Guarantor/Non Guarantor
On May 11, 2005, $175 million of Senior Notes due 2015 were issued by The Greenbrier Companies (Parent). The Senior Notes are fully and unconditionally and jointly and severally guaranteed by certain of Greenbrier’s wholly owned subsidiaries: Autostack Corporation, Greenbrier-Concarril, LLC, Greenbrier Leasing Corporation, Greenbrier Leasing Limited Partner, LLC, Greenbrier Management Services, LLC, Greenbrier Leasing, L.P., Greenbrier Railcar, Inc., Gunderson, Inc., Gunderson Marine, Inc., Xxxxxxxxx Rail Services, Inc., and Gunderson Specialty Products, LLC. No other subsidiaries guarantee the Senior Notes.
The following financial information presents condensed consolidated balance sheets, statements of operations and statements of cash flows for The Greenbrier Companies, its guarantor subsidiaries and non guarantor subsidiaries. The information is presented on the basis of Greenbrier accounting for its ownership of its wholly owned subsidiaries using the equity method of accounting. Intercompany transactions of goods and services between the guarantor and non guarantor subsidiaries are presented as if the sales or transfers were to third parties. The following represents the supplemental consolidated condensed financial information of The Greenbrier Companies, the issuer of the Senior Notes, and its guarantor and non guarantor subsidiaries, as of May 31, 2005 and for the nine months ended May 31, 2005.
The Greenbrier Companies, Inc.
Condensed Consolidated Balance Sheet
May 31, 2005
(In thousands, Unaudited)
Combined | Combined Non- | |||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Parent | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
ASSETS |
||||||||||||||||||||
Cash and cash equivalents |
$ | 49,937 | $ | 14,683 | $ | 2,668 | $ | — | $ | 67,288 | ||||||||||
Restricted cash and investments |
— | — | 499 | — | 499 | |||||||||||||||
Accounts and notes receivable |
35,025 | 69,034 | 20,669 | 407 | 125,135 | |||||||||||||||
Inventories |
— | 122,575 | 57,629 | (746 | ) | 179,458 | ||||||||||||||
Investment in direct finance leases |
— | 13,395 | — | — | 13,395 | |||||||||||||||
Equipment on operating leases |
— | 175,431 | — | (1,965 | ) | 173,466 | ||||||||||||||
Property, plant and equipment |
13 | 50,717 | 18,992 | — | 69,722 | |||||||||||||||
Other |
260,156 | 23,960 | 3,242 | (261,428 | ) | 25,930 | ||||||||||||||
$ | 345,131 | $ | 469,795 | $ | 103,699 | $ | (263,732 | ) | $ | 654,893 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||||||||||
Revolving notes |
— | $ | — | $ | 16,443 | $ | — | $ | 16,443 | |||||||||||
Accounts payable and accrued liabilities |
(9,841 | ) | 150,721 | 52,907 | 407 | 194,194 | ||||||||||||||
Participation |
— | 21,447 | — | — | 21,447 | |||||||||||||||
Deferred income taxes |
5,974 | 31,916 | (10,768 | ) | (459 | ) | 26,663 | |||||||||||||
Deferred revenue |
1,435 | 1,237 | 1,210 | — | 3,882 | |||||||||||||||
Notes payable |
183,343 | 18,643 | 13,753 | — | 215,739 | |||||||||||||||
Subordinated debt |
— | 9,785 | — | — | 9,785 | |||||||||||||||
Subsidiary
shares subject to mandatory redemption |
— | (129 | ) | — | 3,875 | 3,746 | ||||||||||||||
STOCKHOLDERS’ EQUITY |
164,220 | 236,175 | 30,154 | (267,555 | ) | 162,994 | ||||||||||||||
$ | 345,131 | $ | 469,795 | $ | 103,699 | $ | (263,732 | ) | $ | 654,893 | ||||||||||
The Greenbrier Companies, Inc.
Condensed Consolidated Statement of Operations
For the nine months ended May 31, 2005
(In thousands, unaudited)
Combined | Combined Non- | |||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Parent | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Revenue |
||||||||||||||||||||
Manufacturing |
$ | 62,065 | $ | 391,855 | $ | 258,417 | $ | (12,042 | ) | $ | 700,295 | |||||||||
Leasing and services |
416 | 57,943 | — | 342 | 58,701 | |||||||||||||||
Total revenues |
62,481 | 449,798 | 258,417 | (11,700 | ) | 758,996 | ||||||||||||||
Cost of revenue |
||||||||||||||||||||
Manufacturing |
57,686 | 352,736 | 243,029 | (11,302 | ) | 642,149 | ||||||||||||||
Leasing and services |
— | 30,564 | — | (52 | ) | 30,512 | ||||||||||||||
57,686 | 383,300 | 243,029 | (11,354 | ) | 672,661 | |||||||||||||||
Margin |
4,795 | 66,498 | 15,388 | (346 | ) | 86,335 | ||||||||||||||
Other costs |
||||||||||||||||||||
Selling and administrative expense |
10,635 | 23,597 | 7,160 | — | 41,392 | |||||||||||||||
Interest
expense and foreign exchange |
3,307 | 3,667 | 2,681 | (16 | ) | 9,639 | ||||||||||||||
Special charges |
— | 2,913 | — | — | 2,913 | |||||||||||||||
13,942 | 30,177 | 9,841 | (16 | ) | 53,944 | |||||||||||||||
Earnings (loss) before income taxes, minority interest
and equity in earnings (loss) of unconsolidated
subsidiaries |
(9,147 | ) | 36,321 | 5,547 | (330 | ) | 32,391 | |||||||||||||
Income tax expense |
3,689 | (15,304 | ) | (1,356 | ) | 138 | (12,833 | ) | ||||||||||||
(5,458 | ) | 21,017 | 4,191 | (192 | ) | 19,558 | ||||||||||||||
Minority interest |
— | (6 | ) | — | 6 | — | ||||||||||||||
Equity in earnings (loss) of
unconsolidated subsidiaries |
24,695 | 327 | — | (25,344 | ) | (322 | ) | |||||||||||||
Net earnings |
$ | 19,237 | $ | 21,338 | $ | 4,191 | $ | (25,530 | ) | $ | 19,236 | |||||||||
The Greenbrier Companies, Inc.
Condensed Consolidated Statement of Cash Flows
For the nine months ended May 31, 2005
(In thousands, unaudited)
Combined | Combined Non- | |||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Parent | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Cash flows from operating activities: |
||||||||||||||||||||
Net earnings |
$ | 19,237 | $ | 21,338 | $ | 4,191 | $ | (25,530 | ) | $ | 19,236 | |||||||||
Adjustments to reconcile net earnings to net cash
provided by (used in) operating activities: |
||||||||||||||||||||
Earnings from discontinued operations |
— | — | — | — | — | |||||||||||||||
Deferred income taxes |
2,176 | (198 | ) | (1,161 | ) | (138 | ) | 679 | ||||||||||||
Depreciation and amortization |
57 | 14,184 | 2,653 | (54 | ) | 16,840 | ||||||||||||||
Gain on sales of equipment |
— | (3,942 | ) | — | (358 | ) | (4,300 | ) | ||||||||||||
Special charges |
— | — | — | — | — | |||||||||||||||
Other |
— | 200 | 303 | (4 | ) | 499 | ||||||||||||||
Decrease (increase) in assets: |
— | — | — | |||||||||||||||||
Accounts and notes receivable |
(103,192 | ) | 61,541 | 7,219 | (103 | ) | (34,535 | ) | ||||||||||||
Inventories |
— | (17,749 | ) | (2,580 | ) | 740 | (19,589 | ) | ||||||||||||
Other |
(29,824 | ) | (3,255 | ) | (893 | ) | 25,344 | (8,628 | ) | |||||||||||
Increase (decrease) in liabilities: |
— | — | ||||||||||||||||||
Accounts payable and accrued liabilities |
(14,968 | ) | 27,562 | (12,702 | ) | 103 | (5 | ) | ||||||||||||
Participation |
— | (15,660 | ) | — | — | (15,660 | ) | |||||||||||||
Deferred revenue |
1,435 | (1,312 | ) | 1,025 | — | 1,148 | ||||||||||||||
Net cash provided by (used in) operating activities |
(125,079 | ) | 82,709 | (1,945 | ) | — | (44,315 | ) | ||||||||||||
Cash flows from investing activities: |
||||||||||||||||||||
Principal payments received under direct finance leases |
— | 4,524 | — | — | 4,524 | |||||||||||||||
Proceeds from sales of equipment |
— | 23,125 | — | — | 23,125 | |||||||||||||||
Investment in and advances to unconsolidated subsidiaries |
— | (49 | ) | — | — | (49 | ) | |||||||||||||
Decrease (increase) in restricted cash |
— | — | 624 | — | 624 | |||||||||||||||
Acquisition of joint venture interest |
— | 8,435 | 8,435 | |||||||||||||||||
Capital expenditures |
— | (47,129 | ) | (2,349 | ) | — | (49,478 | ) | ||||||||||||
Net cash used in investing activities |
— | (11,094 | ) | (1,725 | ) | — | (12,819 | ) | ||||||||||||
Cash flows from financing activities: |
||||||||||||||||||||
Changes in revolving notes |
— | — | 6,541 | — | 6,541 | |||||||||||||||
Proceeds from notes payable |
175,000 | — | — | — | 175,000 | |||||||||||||||
Repayments of notes payable |
(780 | ) | (64,880 | ) | (674 | ) | — | (66,334 | ) | |||||||||||
Repayments of subordinated debt |
— | (5,157 | ) | — | — | (5,157 | ) | |||||||||||||
Dividends |
(2,692 | ) | — | — | — | (2,692 | ) | |||||||||||||
Net proceeds from equity offering |
127,466 | — | 127,466 | |||||||||||||||||
Re-purchase and retirement stock |
(127,538 | ) | — | (127,538 | ) | |||||||||||||||
Proceeds from exercise of stock options |
3,668 | — | — | — | 3,668 | |||||||||||||||
Net cash provided by (used in) financing activities |
175,124 | (70,037 | ) | 5,867 | — | 110,954 | ||||||||||||||
Effect of exchange rate |
(108 | ) | 2,651 | (1,185 | ) | 1,358 | ||||||||||||||
Increase in cash and cash equivalents |
49,937 | 4,229 | 1,012 | — | 55,178 | |||||||||||||||
Cash and cash equivalents |
||||||||||||||||||||
Beginning of period |
— | 10,454 | 1,656 | — | 12,110 | |||||||||||||||
End of period |
$ | 49,937 | $ | 14,683 | $ | 2,668 | $ | — | $ | 67,288 | ||||||||||