FreightCar America, Inc. : Reports First Quarter 2012 Results
05/08/2012| 06:35am US/Eastern
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Highlights
Sixth consecutive quarter of improved railcar deliveries, revenues,
operating income and gross margin
Revenues of $219.1 million and earnings per share of $0.81
Coal demand under pressure from low natural gas prices, high coal
stockpiles and reduced electrical power consumption
FreightCar America, Inc. (NASDAQ: RAIL) today reported results for the
first quarter ended March 31, 2012, with revenues of $219.1 million and
net income of $9.7 million, or $0.81 per diluted share. For the same
quarter in 2011, the Company reported revenues of $72.2 million and a
net loss of $1.3 million, or $(0.11) per diluted share. Revenues were
$187.1 million and net income was $8.5 million, or $0.71 per diluted
share, in the fourth quarter of 2011.
The Company delivered 2,613 railcars to customers in the first quarter
of 2012, of which 2,146 were new cars, 80 were used cars and 387 were
leased cars. This compares to 875 railcars delivered in the first
quarter of 2011 and 2,489 railcars delivered in the fourth quarter of
2011. There were 1,244 units ordered in the first quarter of 2012. This
compares to 4,027 units ordered in the first quarter of 2011 and 4,481
units ordered in the fourth quarter of 2011. Total manufacturing backlog
was 6,934 units at March 31, 2012 compared to 5,206 units at March 31,
2011 and 8,303 units at December 31, 2011.
"I am pleased with the first quarter's strong results," said Ed Whalen,
President and Chief Executive Officer. "We were able to produce railcars
at an efficient rate, meeting customers' delivery requirements while
lowering manufacturing costs. We received orders for coal and other
types of railcars despite the weak demand for coal. Coal demand was
negatively impacted by the mild winter, lower electrical power
consumption and low natural gas prices. We expect coal demand to remain
under pressure in the near term," Whalen concluded.
The Manufacturing segment had revenues of $210.4 million in the first
quarter of 2012 compared to $63.2 million for the first quarter of 2011.
Manufacturing segment revenues were $179.2 million in the fourth quarter
of 2011. Operating income for the Manufacturing segment was $22.7
million in the first quarter of 2012 compared to $0.2 million in the
first quarter of 2011 and $16.5 million in the fourth quarter of 2011.
Revenues for the Services segment were $8.6 million in the first quarter
of 2012 compared to $9.1 million in the first quarter of 2011 and $7.8
million in the fourth quarter of 2011. Services segment operating income
was $0.7 million for the first quarter of 2012 compared to $1.1 million
in the first quarter of 2011 and $0.5 million in the fourth quarter of
2011.
Corporate costs were $7.4 million for the quarter ended March 31, 2012,
which were $2.3 million higher than in the same quarter in 2011 and $0.2
million lower than in the fourth quarter of 2011.
The Company's effective tax rate for the first quarter of 2012 was
38.8%. The effective tax rate was 66.7% in the first quarter of 2011 and
9.1% in the fourth quarter of 2011.
Cash and cash equivalents and restricted cash as of March 31, 2012 were
$144.6 million, compared to $103.7 million as of December 31, 2011. The
increase in cash reflects the proceeds from the sale of railcars and
other working capital changes. The Company's $30.0 million revolving
credit facility remains undrawn.
Railcars under lease totaled $44.4 million at the end of the first
quarter of 2012 compared to $54.7 million at the end of the fourth
quarter of 2011 and $64.9 million at the end of the first quarter of
2011. The decrease in railcars under lease reflects sales of leased
railcars.
* * * * *
The Company will host a conference call and live webcast on Tuesday, May
8, 2012 at 11:00 a.m. (Eastern Daylight Time) to discuss the Company's
first quarter 2012 financial results. To participate in the conference
call, please dial (800) 230-1074, Confirmation Number 246557. Interested
parties are asked to dial in approximately 10 to 15 minutes prior to the
start time of the call. The live audio-only webcast can be accessed at:
If you need technical assistance, call the toll-free AT&T Conference
Casting Support Help Line at 1-888-793-6118. Please note that the
webcast is listen-only and webcast participants will not be able to
participate in the question and answer portion of the conference call.
An audio replay of the conference call will be available beginning at
1:00 p.m. (Eastern Daylight Time) on May 8, 2012 until 11:59 p.m.
(Eastern Daylight Time) on June 8, 2012. To access the replay, please
dial (800) 475-6701. The replay pass code is 246557. An audio replay of
the call will be available on the Company's website within two days
following the earnings call.
* * * * *
FreightCar America, Inc. manufactures railroad freight cars, supplies
railcar parts, leases freight cars through its JAIX Leasing Company
subsidiary, and provides railcar maintenance, repairs and management
through its FreightCar Rail Services, LLC subsidiary. FreightCar America
designs and builds coal cars, bulk commodity cars, flat cars, mill
gondola cars, intermodal cars, coil steel cars and motor vehicle
carriers. It is headquartered in Chicago, Illinois and has facilities in
the following locations: Clinton, Indiana, Danville, Illinois, Lakewood,
Colorado, Grand Island, Nebraska, Hastings, Nebraska, Johnstown,
Pennsylvania, and Roanoke, Virginia. More information about FreightCar
America is available on its website at www.freightcaramerica.com.
This press release may contain statements relating to our expected
financial performance and/or future business prospects, events and plans
that are "forward-looking statements" as defined under the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
represent our estimates and assumptions only as of the date of this
press release. Our actual results may differ materially from the results
described in or anticipated by our forward-looking statements due to
certain risks and uncertainties. These potential risks and uncertainties
include, among other things: the cyclical nature of our business;
adverse economic and market conditions; fluctuating costs of raw
materials, including steel and aluminum, and delays in the delivery of
raw materials; our ability to maintain relationships with our suppliers
of railcar components; our reliance upon a small number of customers
that represent a large percentage of our sales; the variable purchase
patterns of our customers and the timing of completion, delivery and
customer acceptance of orders; the highly competitive nature of our
industry; the risk of lack of acceptance of our new railcar offerings by
our customers; and the additional risk factors described in our filings
with the Securities and Exchange Commission. We expressly disclaim any
duty to provide updates to any forward-looking statements made in this
press release, whether as a result of new information, future events or
otherwise.
FreightCar America, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
March 31,
December 31,
2012
2011
(In thousands)
Assets
Current assets
Cash and cash equivalents
$
128,389
$
101,870
Restricted cash
16,194
1,815
Accounts receivable, net
12,326
10,125
Inventories
77,753
72,877
Other current assets
7,328
2,618
Deferred income taxes, net
10,982
10,982
Total current assets
252,972
200,287
Property, plant and equipment, net
35,743
35,984
Railcars available for lease, net
44,361
54,746
Goodwill
22,128
22,128
Deferred income taxes, net
21,574
28,150
Other long-term assets
3,975
4,168
Total assets
$
380,753
$
345,463
Liabilities and Stockholders' Equity
Current liabilities
Account and contractual payables
$
51,947
$
28,110
Accrued payroll and employee benefits
7,171
5,611
Accrued postretirement benefits
5,174
5,174
Accrued warranty
7,757
7,795
Customer deposits
18,291
17,964
Other current liabilities
6,796
5,044
Total current liabilities
97,136
69,698
Accrued pension costs
13,021
14,202
Accrued postretirement benefits
59,346
59,887
Other long-term liabilities
4,286
4,342
Total liabilities
173,789
148,129
Stockholders' equity
Preferred stock
--
--
Common stock
127
127
Additional paid in capital
100,011
100,204
Treasury stock, at cost
(35,270
)
(35,904
)
Accumulated other comprehensive loss
(22,129
)
(22,302
)
Retained earnings
164,225
155,209
Total FreightCar America stockholders' equity
206,964
197,334
Noncontrolling interest in JV
--
--
Total stockholders' equity
206,964
197,334
Total liabilities and stockholders' equity
$
380,753
$
345,463
FreightCar America, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended March 31,
2012
2011
(In thousands except shares and per share data)
Revenues
$
219,066
$
72,240
Cost of sales
195,335
69,998
Gross profit
23,731
2,242
Selling, general and administrative expense
8,693
5,997
Gain on sale of railcars available for lease
(948
)
--
Operating income (loss)
15,986
(3,755
)
Interest expense, net
(90
)
(63
)
Operating income (loss) before income taxes
15,896
(3,818
)
Income tax provision (benefit)
6,162
(2,546
)
Net income (loss)
9,734
(1,272
)
Less: Net income (loss) attributable to noncontrolling interest in JV
--
18
Net income (loss) attributable to FreightCar America
$
9,734
$
(1,290
)
Net income (loss) per common share attributable to FreightCar
America- basic
$
0.82
$
(0.11
)
Net income (loss) per common share attributable to FreightCar
America- diluted
$
0.81
$
(0.11
)
Weighted average common shares outstanding -
Basic
11,924,418
11,908,017
Weighted average common shares outstanding -
Diluted
11,979,727
11,908,017
Dividends declared per common share
$
0.06
$
--
FreightCar America, Inc.
Condensed Segment Data
(Unaudited)
Three Months Ended March 31,
2012
2011
(In thousands)
Revenues:
Manufacturing
$
210,449
$
63,173
Services
8,617
9,067
Consolidated Total
$
219,066
$
72,240
Operating Income (Loss):
Manufacturing
$
22,690
$
219
Services
653
1,092
Corporate
(7,357
)
(5,066
)
Consolidated Total
$
15,986
$
(3,755
)
FreightCar America, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended March 31,
2012
2011
(In thousands)
Cash flows from operating activities
Net income (loss)
$
9,734
$
(1,272
)
Adjustments to reconcile net income (loss) to net cash flows
provided by (used in) operating activities:
Depreciation and amortization
2,097
2,125
Gain on sale of railcars available for lease
(948
)
--
Other non-cash items
209
118
Deferred income taxes
6,468
(2,605
)
Compensation expense under stock option and restricted share award
agreements
458
556
Changes in operating assets and liabilities:
Accounts receivable
(2,201
)
(9,766
)
Inventories
(4,491
)
(9,800
)
Other current assets
(4,283
)
1,121
Account and contractual payables
23,686
14,612
Accrued payroll and employee benefits
1,560
(659
)
Income taxes receivable
(237
)
271
Accrued warranty
(38
)
(847
)
Customer deposits and other current liabilities
2,079
(1,180
)
Deferred revenue, non-current
(124
)
(117
)
Accrued pension costs and accrued postretirement benefits
(1,549
)
(3,489
)
Net cash flows provided by (used in) operating activities
32,420
(10,932
)
Cash flows from investing activities
Restricted cash deposits
(14,475
)
--
Restricted cash withdrawals
96
18
Proceeds from sale of property plant and equipment, railcars
available for lease and assets held for sale
10,377
73
Purchase price adjustment for business acquired
--
(166
)
Purchases of property, plant and equipment
(1,164
)
(185
)
Net cash flows used in investing activities
(5,166
)
(260
)
Cash flows from financing activities
Employee restricted stock settlement
(17
)
(21
)
Cash dividends paid to stockholders
(718
)
--
Net cash flows used in financing activities
(735
)
(21
)
Net increase (decrease) in cash and cash equivalents
26,519
(11,213
)
Cash and cash equivalents at beginning of period
101,870
61,780
Cash and cash equivalents at end of period
$
128,389
$
50,567
FreightCar America, Inc. Joe McNeely, 800-458-2235
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