Company delivers 99% year-over-year revenue growth and record quarterly deliveries for new plant

Reaffirms revenue, Adjusted EBITDA, and delivery outlook for 2024

CHICAGO, May 08, 2024 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ: RAIL) (“FreightCar America” or the “Company”), a diversified manufacturer of railroad freight cars, today reported results for the first quarter ended March 31, 2024.

First Quarter 2024 Highlights

  • Revenues of $161.1 million on 1,223 railcar deliveries, an increase of 99% compared to revenues of $81.0 million on 738 railcar deliveries in the first quarter of 2023
  • Gross margin of 7.1% with gross profit of $11.4 million, compared to gross margin of 9.2% with gross profit of $7.5 million in the first quarter of 2023
  • Net loss of ($11.6) million, or ($0.54) per share and Adjusted net income of $4.9 million, or $0.02 per share, accounting primarily for non-cash items associated with a change in fair market value of warrant liability
  • Adjusted EBITDA of $6.1 million, compared to Adjusted EBITDA of $2.1 million in the first quarter of 2023

Nick Randall, President and Chief Executive Officer of FreightCar America, commented, “First quarter revenue grew 99% year-over-year and in line with our expectations. We were pleased by our ability to deliver another quarterly record number of railcars out of our Mexico facility, marking our second consecutive quarter of 1,000+ units of production.”

Randall concluded, “The health of the rail industry continued to improve during the first quarter, and as a result, we continue to maintain our view on industry demand for 35,000 to 40,000 new railcars for the year. As such, we remain confident in the year as we reiterate our stated guidance, with strong revenue and Adjusted EBITDA growth for 2024. With the factory now complete, we have the ability to produce 5,000+ railcars per year and are in our best position yet to efficiently execute. As I step into my new role as CEO, I am focused on our profitable growth through driving efficiencies, realizing the benefits of volume leverage, and improving margins as we flex the full capacity of our facility.”

Fiscal Year 2024 Outlook

The Company has reaffirmed outlook for fiscal year 2024 is as follows:

 Fiscal 2024 OutlookYear-over-Year Growth at Midpoint
Revenue$520 - $572 million52.5%
Adjusted EBITDA$32 - $38 million74.1%
Railcar Deliveries4,000 – 4,400 Railcars39.0%
   

Mike Riordan, Chief Financial Officer of FreightCar America, commented, “With the start of the year playing out in line with what we initially expected, we are reaffirming our full year guidance ranges. Furthermore, with the completion of the new manufacturing campus, and as we look ahead, we believe that we are extremely well positioned to enhance shareholder value by capturing incremental share, while remaining focused on margin, as industry demand improves.”

First Quarter 2024 Conference Call & Webcast Information

The Company will host a conference call and live webcast on Thursday, May 9 at 11:00 a.m. (Eastern Time) to discuss its first quarter 2024 financial results. FreightCar America invites shareholders and other interested parties to listen to its financial results conference call via the following live and recorded methods:

Live Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1663434&tp_key=081d332e65

Recorded Webcast: A recorded webcast will be available until Thursday, May 23, 2024, on FreightCar America’s website following the conference call date at: https://investors.freightcaramerica.com/news-events/event-calendar/

Teleconference: Dial-in numbers for the live Conference Call are (877) 407-0789 or (201) 689-8562. Please call in at least 10 minutes prior to the start time of the call. An audio replay may be accessed at (844) 512-2921 or (412) 317-6671; Passcode: 13745456.

About FreightCar America

FreightCar America, headquartered in Chicago, Illinois, is a leading designer, producer and supplier of railroad freight cars, railcar parts and components. We also specialize in railcar repairs, complete railcar rebody services and railcar conversions that repurpose idled rail assets back into revenue service. Since 1901, our customers have trusted us to build quality railcars that are critical to economic growth and instrumental to the North American supply chain. To learn more about FreightCar America, visit www.freightcaramerica.com.

Forward-Looking Statements

This press release contains statements relating to our expected financial performance, financial condition, and/or future business prospects, events and/or 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 risks and uncertainties relate to, among other things, the cyclical nature of our business; adverse economic and market conditions including inflation; material disruption in the movement of rail traffic for deliveries; fluctuating costs of raw materials including steel and aluminum; 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, and other competitive factors. The factors listed above are not exhaustive. New factors emerge from time to time that may cause our business not to develop as we expect, and it is not possible for us to predict all of them. 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.
Non-GAAP Financial Measures

This press release includes measures not derived in accordance with generally accepted accounting principles (“GAAP”), such as EBITDA, Adjusted EBITDA, Adjusted net loss and Adjusted EPS. These non-GAAP measures should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP and may also be inconsistent with similar measures presented by other companies. Reconciliations of these measures to the applicable most closely comparable GAAP measures, and reasons for the Company’s use of these measures, are presented in the attached pages.

Investor Contact:RAILIR@Riveron.com
  


FreightCar America, Inc.
Consolidated Balance Sheets
(In thousands, except for share data)
 
 March 31,
2024		  December 31,
2023		 
Assets  
Current assets     
Cash, cash equivalents and restricted cash equivalents$13,977  $40,560 
Accounts receivable, net of allowance for doubtful accounts of $82 and $18 respectively 35,040   6,408 
VAT receivable 3,959   2,926 
Inventories, net 109,778   125,022 
Assets held for sale 629   — 
Related party asset 902   638 
Prepaid expenses 6,533   4,867 
Total current assets 170,818   180,421 
Property, plant and equipment, net 30,673   31,258 
Railcars available for lease, net —   2,842 
Right of use asset operating lease 2,724   2,826 
Right of use asset finance lease 39,676   40,277 
Other long-term assets 4,778   1,835 
Total assets$248,669  $259,459 
        
Liabilities, Mezzanine Equity and Stockholders’ Deficit     
Current liabilities     
Accounts and contractual payables$75,918  $84,417 
Related party accounts payable 2,394   2,478 
Accrued payroll and other employee costs 4,975   5,738 
Accrued warranty 1,468   1,602 
Current portion of long-term debt 30,002   29,415 
Other current liabilities 7,309   13,711 
Total current liabilities 122,066   137,361 
Warrant liability 52,454   36,801 
Accrued pension costs 1,106   1,046 
Lease liability operating lease, long-term 3,038   3,164 
Lease liability finance lease, long-term 41,084   41,273 
Other long-term liabilities 2,278   2,562 
Total liabilities 222,026   222,207 
        
Commitments and contingencies     
Mezzanine equity     
Series C Preferred stock, $0.01 par value, 85,412 shares authorized, 85,412 shares issued and outstanding at each of March 31, 2024 and December 31, 2023, respectively. Liquidation value $99,285 and $95,048 at March 31, 2024 and December 31, 2023, respectively. 83,602   83,458 
        
Stockholders’ deficit     
Preferred stock, $0.01 par value, 2,500,000 shares authorized (100,000 shares each
designated as Series A voting and Series B non-voting, 0 shares issued and outstanding
at March 31, 2024 and December 31, 2023)		 —   — 
Common stock, $0.01 par value, 50,000,000 shares authorized, 18,345,488 and 17,903,437
shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively		 214   210 
Additional paid-in capital 94,783   94,067 
Accumulated other comprehensive income 2,607   2,365 
Accumulated deficit (154,563)  (142,848)
Total stockholders' deficit (56,959)  (46,206)
Total liabilities, mezzanine equity and stockholders’ deficit$248,669  $259,459 
        


FreightCar America, Inc.
Consolidated Statements of Operations
(In thousands, except for share and per share data)
 
 Three Months Ended 
 March 31, 
 2024  2023 
   
Revenues$161,058  $80,999 
Cost of sales 149,655   73,514 
Gross profit 11,403   7,485 
Selling, general and administrative expenses 7,493   6,388 
Operating income 3,910   1,097 
Interest expense (2,391)  (6,600)
(Loss) gain on change in fair market value of Warrant liability (15,653)  613 
Other expense (14)  (36)
Loss before income taxes (14,148)  (4,926)
Income tax (benefit) provision (2,577)  111 
Net loss$(11,571) $(5,037)
Net loss per common share – basic$(0.54) $(0.19)
Net loss per common share – diluted$(0.54) $(0.19)
Weighted average common shares outstanding – basic 29,580,182   26,545,463 
Weighted average common shares outstanding – diluted 29,580,182   26,545,463 
        


FreightCar America, Inc.
Segment Data
(In thousands)
 
 Three Months Ended 
 March 31, 
 2024  2023 
Revenues:     
Manufacturing$155,728  $77,599 
Corporate and Other 5,330   3,400 
Consolidated revenues$161,058  $80,999 
      
Operating income (loss):     
Manufacturing$8,279  $5,628 
Corporate and Other (4,369)  (4,531)
Consolidated operating income$3,910  $1,097 
        


FreightCar America, Inc.
Consolidated Statements of Cash Flows
(In thousands)
 
 Three Months Ended March 31, 
 2024  2023 
Cash flows from operating activities  
Net loss$(11,571) $(5,037)
Adjustments to reconcile net loss to net cash flows used in operating activities:     
Depreciation and amortization 1,396   1,072 
Non-cash lease expense on right-of-use assets 703   731 
Loss (gain) on change in fair market value for Warrant liability 15,633   (613)
Stock-based compensation recognized 760   (91)
Non-cash interest expense 1,539   4,264 
Other non-cash items, net 207   (1)
Changes in operating assets and liabilities:     
Accounts receivable (28,632)  904 
VAT receivable (999)  2,960 
Inventories 16,963   (19,698)
Related party asset, net (348)  (362)
Accounts and contractual payables (7,884)  9,695 
Income taxes payable, net (3,937)  (517)
Lease liability (1,057)  (1,191)
Other assets and liabilities (8,115)  180 
Net cash flows used in operating activities (25,322)  (7,704)
        
Cash flows from investing activities     
Purchase of property, plant and equipment (966)  (1,960)
Net cash flows used in investing activities (966)  (1,960)
      
Cash flows from financing activities     
Borrowings on revolving line of credit 13,037   31,688 
Repayments on revolving line of credit (12,450)  (31,884)
Employee stock settlement (40)  (106)
Financing lease payments (842)  (147)
Net cash flows used in financing activities (295)  (449)
Net decrease in cash and cash equivalents (26,583)  (10,113)
Cash, cash equivalents and restricted cash equivalents at beginning of period 40,560   37,912 
Cash, cash equivalents and restricted cash equivalents at end of period$13,977  $27,799 
        
Supplemental cash flow information     
Interest paid$852  $2,340 
Income taxes paid$403  $151 
Non-cash transactions     
Change in unpaid construction in process$(155) $539 
Accrued PIK interest paid through issuance of PIK Note$—  $1,658 
Issuance of equity fee$—  $535 
      


Non-GAAP Financial Measures (Unaudited)

FreightCar America, Inc.
Reconciliation of loss before taxes to EBITDA(1) and Adjusted EBITDA(2)
(In thousands)
(Unaudited)
      
 Three Months Ended
March 31,		 
 2024  2023 
      
Loss before income taxes$(14,148) $(4,926)
Depreciation & Amortization 1,396   1,072 
Interest Expense, net 2,391   6,600 
EBITDA (10,361)  2,746 
      
Change in Fair Value of Warrant (a) 15,653   (613)
Stock Based Compensation 760   (91)
Other, net 15   36 
Adjusted EBITDA$6,067  $2,078 


(1)EBITDA represents earnings before interest, taxes, depreciation and amortization. We believe EBITDA is useful to investors in evaluating our operating performance compared to that of other companies in our industry. In addition, our management uses EBITDA to evaluate our operating performance. The calculation of EBITDA eliminates the effects of financing, income taxes and the accounting effects of capital spending. These items may vary for different companies for reasons unrelated to the overall performance of the company’s business. EBITDA is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider EBITDA in isolation or as a substitute for net income, cash flows from operating activities or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of EBITDA is not necessarily comparable to that of other similar titled measures reported by other companies.
(2)Adjusted EBITDA represents EBITDA before the following charges:
 a)This adjustment removes the non-cash expense (income) associated with the change in fair market value of the Company’s warrant liability.
   

We believe that Adjusted EBITDA is useful to investors evaluating our operating performance compared to that of other companies in our industry because it eliminates the impact of certain non-cash charges and other special items that affect the comparability of results in past quarters. Adjusted EBITDA is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted EBITDA in isolation or as a substitute for net income, cash flows from operating activities or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Adjusted EBITDA is not necessarily comparable to that of other similarly titled measures reported by other companies.

FreightCar America, Inc.
Reconciliation of Net loss and Adjusted net income (loss) (1)
(Unaudited)
         
 Three Months Ended
March 31,		 
 2024  2023 
      
Net loss$(11,571) $(5,037)
      
Change in Fair Value of Warrant (a) 15,653   (613)
Stock Based Compensation 760   (91)
Other, net 15   36 
Total non-GAAP adjustments 16,428   (668)
Income tax impact on non-GAAP adjustments (b) -   - 
Adjusted net income (loss)$4,857  $(5,705)


(1)Adjusted net income (loss) represents net income (loss) before the following charges:
 a)This adjustment removes the non-cash expense (income) associated with the change in fair market value of the Company’s warrant liability.
 b)Income tax impact on non-GAAP adjustments per share represents the tax impact of adjustments specific to Mexico using the effective tax rate. Given the Company’s US based NOLs and Valuation Allowances, all US based adjustments above are not tax affected.
   

We believe that Adjusted net income (loss) is useful to investors evaluating our operating performance compared to that of other companies in our industry because it eliminates the impact of certain non-cash charges and other special items that affect the comparability of results in past quarters. Adjusted net income (loss) is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted net income (loss) in isolation or as a substitute for net income, cash flows from operating activities or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Adjusted net loss is not necessarily comparable to that of other similarly titled measures reported by other companies.

FreightCar America, Inc.
Reconciliation of EPS and Adjusted EPS(1)
(Unaudited)
      
 Three Months Ended
March 31,		 
 2024  2023 
      
EPS$(0.54) $(0.19)
      
Change in Fair Value of Warrant (a) 0.53   (0.02)
Stock Based Compensation 0.03   - 
Other, net -   - 
Total non-GAAP adjustments pre-tax per-share 0.56   (0.02)
Income tax impact on non-GAAP adjustments per share (b) -   - 
Adjusted EPS$0.02  $(0.21)


(1)Adjusted EPS represents basic EPS before the following charges:
 a)This adjustment removes the non-cash expense (income) associated with the change in fair market value of the Company’s warrant liability.
 b)Income tax impact on non-GAAP adjustments per share represents the tax impact of adjustments specific to Mexico using the effective tax rate. Given the Company’s US based NOLs and Valuation Allowances, all US based adjustments above are not tax affected.
   

We believe that Adjusted EPS is useful to investors evaluating our operating performance compared to that of other companies in our industry because it eliminates the impact of certain non-cash charges and other special items that affect the comparability of results in past quarters. Adjusted EPS is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted EPS in isolation or as a substitute for net income, cash flows from operating activities or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Adjusted EPS is not necessarily comparable to that of other similarly titled measures reported by other companies.


Primary Logo

Source: FreightCar America, Inc.

2024 GlobeNewswire, Inc., source Press Releases