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LAKE OSWEGO, Oregon, July 10, 2020 / PRNewswire / – The Board of Directors of The Greenbrier Companies, Inc. (NYSE: GBX) (“Greenbrier”), a leading foreign supplier of gadgets and for the global cargo markets, announced today that president and CEO, Bill Furman, agreed to remain in his current position for another two years, retiring in 2022. As a component of the company’s ongoing succession plans process, Furman will leave all control positions in September 2022.
The Board has taken this and other similar steps described below to ensure the continuity of a control team experienced two fiscal years plus fiscal year 2022. These measures also allow for effective succession and control transitions, as well as the continuous progression of Greenbrier’s control capability group. The existing COVID-19 crisis and the accompanying economic uncertainty environment require an experienced industry and a control team to lead Greenbrier in ordinary times. All of Greenbrier’s most sensible executives have an ongoing commitment to leadership progression and succession planning. Effective control of the pandemic and existing economic uncertainty is the company’s top priority.
As a component of a modified agreement signed this week, Furman volunteered to continue his role on a reduced overall salary and to increase voluntary relief in his base salary. In addition, Furman agreed to waive any annual restructuring-based bonuses for the 2020 and 2021 monetary years in the form of money and will obtain company inventories. Furman does not get any refunds on inventories or money as a component of your revised agreement. You will be eligible for inventory awards in the general course of annual inventory reimbursement programs. The publication of Furman’s equity grants will focus heavily on achieving the company’s signs of persuasion, as well as the CEO’s succession objectives. For more key points on the agreement, see the company’s existing report on Form 8-K.
On May 15, Furman increased his stake in Greenbrier with a 100,000-share acquisition with a general charge of $1.6 million. By adding limited equity sets (RSUs) that are loose for target performance, Furman now owns more than 600,000 shares or RSUs.
“In my opinion, Greenbrier’s percentage value is undervalued,” Furman said. “We have particularly complex our strategic position in the market and our products for more than 18 months in North America and have done the same on 3 other continents. I take a look before running with our Board of Directors and senior executives during this era of uncertainty to continue Greenbrier construction. I expect greater monetary functionality, as it has an effect on the decline of COVID-19 and the economy improves over time, allowing the market dynamics of our industry to normalize.”
On Furman’s recommendation, the Board’s Compensation Committee granted an exclusive special allocation of shares to the Chairman and Chief Operating Officer, Lorie Tekorius. She entered her new role last year without a base salary increase, while she particularly assumed the creation of day-to-day jobs in unprecedented periods.
Furman said: “Lorie has behaved incredibly well, whether it’s operational and advertising leadership, and leading our groups to respond to the COVID-19 crisis. Greenbrier achieved timely and specific charge reductions, and aggressively controlled liquidity and proper business. A third of Lorie’s actions will be connected to express the business objectives that will be carried out within 12 months and the rest will be acquired in proportion to the anniversaries of two and three years of its concession.”
About Greenbrier
Headquartered in Lake Oswego, Oregon, Greenbrier is a leading company in the transportation of appliances abroad and in global cargo markets. Greenbrier designs, builds and markets shipping cars and marine barges in North America. Greenbrier Europe is an end-to-end cargo car manufacturing, engineering and repair company with operations in Poland, Romania and Turkey serving consumers throughout Europe and in Gulf Cooperation Council countries. Greenbrier builds cargo cars and molded portions in Brazil through two separate strategic partnerships. We are a leading company in the transportation of wheels, portions, arrangements, repairs and modernization of cargo cars in North America through our wheel, arrangement and portion business unit. Greenbrier supplies auto management, regulatory compliance and leasing to similar railroads and transportation industries in North America. Through unconsolated joint ventures, we produce commercial and molded portions of rails and other components. Greenbrier has a rental fleet of 8,800 cars and manages 391,000 cars. Learn more about Greenbrier in www.gbrx.com.
STATEMENT OF “SAFE PORT” IN VERTU OF 1995 ON THE REFORM OF PRIVATE VALUES: This press release would possibly involve forward-looking statements, adding statements that are not purely old facts. Greenbrier uses words and word diversifications, such as “authorize,” “continue,” “guarantee,” “wait,” “have,” “is,” “plan,” “provide,” “target,” “go” “and similar expressions to identify forward-looking statements.” These forward-looking statements include, but are not limited to, statements regarding succession control and other data related to functionality and long-term methods, and are included in this press release. These forward-looking statements are not promises of long-term functionality and are a matter of ensuring dangers and insecurities that can also cause actual effects to differ materially from expected through forward-looking statements.
Factors that might cause such a difference include, but are not limited to, the COVID-19 coronavirus pandemic, the governmental reaction to COVID-19 and the related significant global decline in general economic activity having a materially negative impact on our business, liquidity and financial position, results of operations, stock price, and our ability to convert backlog to revenue; our inability to increase our liquidity and borrowing base as we anticipate or being delayed in doing so; inability to implement cost savings in the amounts or timelines that we have planned; the cyclical nature of our business, economic downturns and a rising interest rate environment; changes in our product mix due to shifts in demand or fluctuations in commodity and energy prices; a decline in performance or demand of the rail freight industry; an oversupply or increase in efficiency in the rail freight industry; difficulty integrating acquired businesses or joint ventures; inability to convert backlog to future revenues; risks related to our operations outside of the U.S., including anti-bribery violations; governmental policy changes impacting international trade and corporate tax; the loss of or reduction of business from one or more of our limited number of customers; inability to lease railcars at satisfactory rates, or realize expected residual values on sale of railcars at the end of a lease; shortages of skilled labor, increased labor costs, or failure to maintain good relations with our workforce; equipment failures, technological failures, costs and inefficiencies associated with changing of production lines, or transfer of production between facilities; inability to compete successfully; suitable joint ventures, acquisition opportunities and new business endeavors may not be identified or concluded; inability to complete capital expenditure projects efficiently, or to cause capital expenditure projects to operate as anticipated; inability to design or manufacture products or technologies, or to achieve timely certification or market acceptance of new products or technologies; unsuccessful relationships with our joint venture partners; environmental liabilities, including the Portland Harbor Superfund Site; the timing of our asset sales and related revenue recognition may result in comparisons between fiscal periods not being accurate indicators of future performance; attrition within our management team or unsuccessful succession planning for members of our senior management team and other key employees who are at or nearing retirement age; changes in the credit markets and the financial services industry; volatility in the global financial markets; our actual results differing from our announced expectations; fluctuations in the availability and price of energy, freight transportation, steel and other raw materials; inability to procure specialty components or services on commercially reasonable terms or on a timely basis from a limited number of suppliers; our existing indebtedness may limit our ability to borrow additional amounts in the future, may expose us to increasing interest rates, and may expose us to a material adverse effect on our business if we are unable to service our debt or obtain additional financing; train derailments or other accidents or claims; changes in or failure to comply with legal and regulatory requirements; an adverse outcome in any pending or future litigation or investigation; potential misconduct by employees; labor strikes or work stoppages; the volatility of our stock price; dilution to investors resulting from raising additional capital or due to other reasons; product and service warranty claims; misuse of our products by third parties; write-downs of goodwill or intangibles in future periods; conversion at our option of our outstanding convertible notes resulting in dilution to our then-current stockholders; as a holding company with no operations, our reliance on our subsidiaries and joint ventures and their ability to make distributions to us; our governing documents, the terms of our convertible notes, and Oregon law could make a change of control or acquisition of our business by a third party difficult; the discretion of our Board of Directors to pay or not pay dividends on our common stock; fluctuations in foreign currency exchange rates; inability to raise additional capital to operate our business and achieve our business objectives; shareholder activism could cause us to incur significance expense, impact our stock price, and hinder execution of our business strategy; cybersecurity risks; updates or changes to our information technology systems resulting in problems; inability to protect our intellectual property and prevent its improper use by third parties; claims by third parties that our products or services infringe their intellectual property rights; liability for physical damage, business interruption or product liability claims that exceed our insurance coverage; inability to procure adequate insurance on a cost-effective basis; changes in accounting standards or inaccurate estimates or assumptions in the application of accounting policies; fires, natural disasters, severe weather conditions or public health crises; unusual weather conditions which reduce demand for our wheel-related parts and repair services; business, regulatory, and legal developments regarding climate change which may affect the demand for our products or the ability of our critical suppliers to meet our needs; repercussions from terrorist activities or armed conflict; unanticipated changes in our tax provisions or exposure to additional income tax liabilities; the inability of certain of our customers to utilize tax benefits or tax credits; and suspension or termination of our share repurchase program. More information on these risks and other 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 reports on Form 10-K and subsequent Form 10-Q filings. 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.
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SOURCE The Greenbrier Companies, Inc.