CHICAGO, May 02, 2018 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ:RAIL) today reported results for the first quarter ended March 31, 2018.

Financial Highlights

  • First quarter revenue of $83.0 million on deliveries of 1,094 units
  • First quarter net loss of $6.4 million, or $0.51 per diluted share
  • Total cash, cash equivalents, marketable securities and restricted certificates of deposit of $123.0 million at March 31, 2018
  • Backlog totaling 2,054 railcars at an aggregate value of approximately $143 million
  • Completed acquisition of Navistar, Inc.’s railcar operations at Shoals facility during the quarter
  • Full-year 2018 delivery outlook raised and now expected to range between 4,000 and 4,300 railcars

“The first quarter marked a step in the right direction for FreightCar America,” said Jim Meyer, President and Chief Executive Officer. “Last quarter, we introduced our ‘Back to Basics’ operational excellence initiative rooted in manufacturing best practices, meaningful efficiency improvements and instillation of a cultural change across the organization. This quarter, we began to implement many of these initiatives and are encouraged by our start. Our employees are engaged and excited about the work they are doing, and we remain confident in our ability to achieve our goal of reducing cost of goods sold by $3,000 to $4,000 per railcar on a run rate basis by the end of 2018.”

Meyer concluded, “While challenging industry dynamics continue to put pressure on pricing, FreightCar America is focusing its efforts on areas which we can control. During the first quarter, we delivered nearly 1,100 units, received orders totaling 756 new and rebuilt railcars and continued to have positive conversations across our client base. In particular, we’re seeing increased demand for our rebuild capabilities as it relates to coal car conversions, the large majority of which we were the original manufacturer. As a result, we have grown more confident in our ability to capitalize on that opportunity this year and we are raising the lower end of our delivery outlook by 500 railcars. We now expect to deliver between 4,000 and 4,300 railcars during fiscal 2018.”

First Quarter Results

  • Consolidated revenues were $83.0 million in the first quarter of 2018 compared to $139.5 million in the same quarter of 2017.

  • The Company delivered 1,094 railcars in the first quarter of 2018, which included 891 new railcars, 81 rebuilt railcars and 122 leased railcars. This compares to 1,525 railcars delivered in the first quarter of 2017, which included 1,425 new railcars and 100 leased railcars.

  • The Company had a diversified backlog totaling 2,054 railcars at March 31, 2018, valued at approximately $143 million.

  • Consolidated operating loss for the first quarter of 2018 was $8.6 million compared to operating income of $1.4 million for the first quarter of 2017.

  • Net loss in the first quarter of 2018 was $6.4 million, or $0.51 per diluted share, compared to net income of $0.6 million, or $0.05 per diluted share, in the first quarter of 2017.

  • Cash, cash equivalents, marketable securities and restricted certificates of deposit were $123.0 million as of March 31, 2018, compared to $136.4 million as of December 31, 2017. The decrease in cash was primarily driven by changes in working capital, including increases in accounts receivable that have substantially been collected and inventory on lease.

First Quarter 2018 Conference Call & Webcast Information

The Company will host a conference call and live webcast on Thursday, May 3, 2018 at 11:00 a.m. (Eastern Daylight Time) to discuss the Company’s first quarter 2018 financial results.  To participate in the conference call, please dial (800) 230-1096, Confirmation Number 448010.  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:

Event URL:

Conference ID#: 448010

If you need technical assistance, call the toll-free AT&T Conference Casting Support Help Line at (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 3, 2018 until 11:59 p.m. (Eastern Daylight Time) on June 3, 2018.  To access the replay, please dial (800) 475-6701.  The replay pass code is 448010.  An audio replay of the call will be available on the Company’s website within two days following the earnings call.

About FreightCar America, Inc.

FreightCar America, Inc. manufactures a wide range of railroad freight cars, supplies railcar parts and leases freight cars through its JAIX Leasing Company subsidiary. FreightCar America designs and builds high-quality railcars, including coal cars, bulk commodity cars, covered hopper cars, intermodal and non-intermodal flat cars, mill gondola cars, coil steel cars and boxcars. It is headquartered in Chicago, Illinois and has facilities in the following locations: Cherokee, Alabama; Danville, Illinois; Grand Island, Nebraska; Johnstown, Pennsylvania; Roanoke, Virginia; and Shanghai, People’s Republic of China. More information about FreightCar America is available on its website at

Forward Looking Statements

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: risks relating to the Shoals facility, including the facility not meeting internal assumptions or expectations and unforeseen liabilities from Navistar; 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

 March 31,December 31,
 (In thousands)
Current assets  
 Cash and cash equivalents$    65,255 $    87,788 
 Restricted certificates of deposit   5,452    5,720 
 Marketable securities    52,288    42,917 
 Accounts receivable, net   12,911    7,581 
 Inventories, net   46,685    45,292 
 Inventory on lease   14,736    5,550 
 Income taxes receivable   329    815 
 Other current assets   7,693    4,284 
Total current assets   205,349    199,947 
Property, plant and equipment, net   53,023    38,253 
  Railcars available for lease, net    23,140    23,434 
 Goodwill   21,521    21,521 
 Deferred income taxes, net   11,428    9,446 
 Other long-term assets   3,169    3,303 
 Total assets$    317,630 $    295,904 
Liabilities and Stockholders’ Equity  
Current liabilities  
 Accounts and contractual payables$    26,273 $    23,329 
 Accrued payroll and other employee costs   2,147    1,809 
 Reserve for workers’ compensation   3,749    3,394 
 Accrued warranty   9,041    8,062 
 Deferred income from state and local incentives, current   2,219    2,219 
 Deferred rent, current   5,215    178 
 Other current liabilities   2,747    1,326 
Total current liabilities   51,391     40,317 
Accrued pension costs   5,480    5,763 
Accrued postretirement benefits, less current portion   5,385    5,556 
Deferred income from state and local incentives, long-term   8,606    9,161 
Deferred rent, long-term   20,292    2,988 
Accrued taxes and other long-term liabilities   394    387 
Total liabilities   91,548    64,172 
Stockholders’ equity  
 Preferred stock   —    — 
 Common stock   127    127 
 Additional paid in capital   88,908    90,347 
 Treasury stock, at cost   (10,398)   (12,555)
 Accumulated other comprehensive loss   (7,531)   (7,567)
 Retained earnings   154,976    161,380 
Total stockholders’ equity   226,082    231,732 
Total liabilities and stockholders’ equity$    317,630 $    295,904 

FreightCar America, Inc.

Condensed Consolidated Statements of Operations

  Three Months Ended
March 31,
  (In thousands, except for share and per
share data)
Revenues $    82,973 $      139,536 
Cost of sales    83,569     129,730 
Gross (loss) profit    (596)   9,806 
Selling, general and administrative expenses    7,996    7,030 
Restructuring and impairment charges    —    1,357 
      Operating (loss) income    (8,592)   1,419 
Interest expense and deferred financing costs    (32)   (42)
Other income (expense)    381    (299)
(Loss) income before income taxes    (8,243)   1,078 
Income tax (benefit) provision    (1,839)   440 
Net (loss) income $    (6,404)$    638 
Net (loss) income per common share – basic $    (0.51)$    0.05 
Net (loss) income per common share – diluted $    (0.51)$    0.05 
Weighted average common shares outstanding -   
  basic    12,306,011      12,269,555 
Weighted average common shares outstanding -   
  diluted    12,306,011      12,269,555 
Dividends declared per common share $    — $    0.09 

FreightCar America, Inc.

Segment Data

   Three Months Ended
March 31,
  (In thousands)
Manufacturing $    79,733 $    137,740 
Corporate and Other    3,240    1,796 
   Consolidated revenues $    82,973 $    139,536 
Operating (loss) income:   
Manufacturing $    (3,816)$    7,249 
Corporate and Other    (4,776)   (5,830)
   Consolidated operating (loss) income $    (8,592)$    1,419 

FreightCar America, Inc.

Condensed Consolidated Statements of Cash Flows

 Three Months Ended
March 31,
 (In thousands)
Cash flows from operating activities  
Net (loss) income$   (6,404)$   638 
Adjustments to reconcile net (loss) income to net cash
flows (used in) provided by operating activities: 
Net proceeds from Shoals transaction   2,655    — 
Depreciation and amortization   2,550    2,337 
Recognition of deferred income from state and local incentives   (555)     (555)
Gain on sale of railcars available for lease   38      — 
Deferred income taxes   (1,992)   408 
Stock-based compensation recognized   836    214 
Other non-cash items, net   235    84 
Changes in operating assets and liabilities:  
    Accounts receivable   (5,330)   1,630 
Inventories   1,930    20,101 
Inventory on lease   (9,186)   (8,391)
Other assets   (3,323)   (1,481)
Accounts and contractual payables   2,284    (1,170)
Accrued payroll and employee benefits   338    1,098 
Income taxes receivable/payable    650    48 
Accrued warranty    979    267 
Other liabilities    1,223      547 
Accrued pension costs and accrued postretirement benefits   (418)   185 
Net cash flows (used in) provided by operating activities    (13,490)     15,960 
Cash flows from investing activities  
Purchase of restricted certificates of deposit    (1,040)    (4,668)
Maturity of restricted certificates of deposit    1,308    1,558 
Purchase of securities held to maturity    (41,244)   (10,995)
Proceeds from maturity of securities     32,005    — 
Purchases of property, plant and equipment     (182)   (296)
Proceeds from sale of property, plant and equipment and railcars available
for lease
     228    119 
State and local incentives received     —    1,410 
Net cash flows used in investing activities     (8,925)   (12,872)
Cash flows from financing activities  
Employee stock settlement   (118)   (14)
Cash dividends paid to stockholders    —    (1,117)
Net cash flows used in financing activities    

Net (decrease) increase in cash and cash equivalents     (22,533)   1,957 
Cash, cash equivalents and restricted cash equivalents at beginning of period     87,788    96,110 
Cash, cash equivalents and restricted cash equivalents at end of period$    65,255 $  98,067 

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