• FreightCar America, Inc. Reports Second Quarter 2022 Results

    Источник: Nasdaq GlobeNewswire / 08 авг 2022 15:15:01   America/Chicago

    Second quarter 2022 revenue up 52% year-over-year and gross margin of 11.6%

    Company raises revenue and delivery outlook for fiscal year 2022

    CHICAGO, Aug. 08, 2022 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ: RAIL) (“FCA” or the “Company”), a diversified manufacturer of railroad freight cars, today reported results for the second quarter ended June 30, 2022.

    Second Quarter 2022 Highlights        

    • Revenues of $56.8 million, up 52.0% year-over-year, on deliveries of 468 railcars
    • Gross margin of 11.6% with gross profit of $6.6 million and manufacturing operating income of $4.9 million
    • Net income of $14.5 million, or $0.58 per share
    • Adjusted EBITDA of $2.3 million
    • Quarter-end backlog totaled 2,972 railcars with an aggregate value of approximately $320 million
    • 2022 revenue outlook raised to between $340 million and $360 million and delivery outlook raised to between 3,000 and 3,200 railcars

    Jim Meyer, President and Chief Executive Officer of FreightCar America, commented, “FreightCar America reported solid results in the second quarter, recording positive Adjusted EBITDA on just 468 railcars due to planned line changeovers which temporarily curtailed production. The changeovers went smoothly and according to plan, and these results demonstrate our ability to generate superior margins even while producing far fewer units and against the continuing backdrop of high steel costs. For the balance of the year, we expect to produce upwards of 2,000 railcars.”

    Meyer continued, “Our work to expand the Castaños facility continues, and we believe that we are well on our way to building a world class manufacturing footprint in Northern Mexico with equal focus on product flexibility, quality, and low cost. At the same time, our commercial team remains focused on growing our business in a margin-accretive manner.”

    Second Quarter 2022 Results

    • Consolidated revenues were $56.8 million in the second quarter of 2022, compared to $37.4 million in the second quarter of 2021. The Company delivered 468 railcars in the second quarter of 2022, compared to 313 railcars in the second quarter of 2021.
    • Net income in the second quarter of 2022 was $14.5 million, or $0.58 per share, compared to net loss of ($4.2) million, or ($0.24) per share, in the second quarter of 2021. Net income/loss for the current and prior periods included non-operating items that impacted results, including:
      • $18.7 million non-cash gain related to the change in fair market value of warrant liability and a $2.8 million non-cash gain for stock-based compensation in the second quarter of 2022. In the second quarter of 2021, there was a non-cash gain of $3.5 million related to the change in fair market value of warrant liability.
    • Adjusted EBITDA for the second quarter of 2022 was $2.3 million, compared to Adjusted EBITDA loss of ($3.1) million for the second quarter of 2021.

    Fiscal Year 2022 Outlook

    • The Company has raised its outlook for fiscal year 2022 as follows:
    Fiscal Year 2022
    RevenueBetween $340 million and $360 million
    Railcar DeliveriesBetween 3,000 and 3,200 railcars

    Mike Riordan, Chief Financial Officer, added, “We executed on our strategic and financial objectives in the second quarter, and while our production year-to-date was largely in line with our internal expectations, we are expecting a significant uptick in units delivered for the balance of fiscal 2022. Due to stronger levels of order activity, and a robust backlog, we are raising our previously stated 2022 outlook.”

    Second Quarter 2022 Conference Call & Webcast Information

    The Company will host a conference call and live webcast on Tuesday, August 9, 2022 at 11:00 a.m. (Eastern Time) to discuss its second quarter 2022 financial results. Investors, analysts, and members of the media interested in listening to the live presentation are encouraged to join a webcast of the call, available at:

    Event URL: https://viavid.webcasts.com/starthere.jsp?ei=1558577&tp_key=e146d97490

    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. Interested parties may also participate in the call by dialing (877) 407-0789 or (201) 689-8562 and entering the passcode 13731238. Interested parties are asked to dial in approximately 10 to 15 minutes prior to the start time of the call.

    An audio replay of the conference call will be available beginning at 2:00 p.m. (Eastern Time) on August 9, 2022, until 12:00 a.m. (Eastern Time) on Wednesday August 23, 2022. To access the replay, please dial (844) 512-2921 or (412) 317-6671. The replay passcode is 13731238. An archived version of the webcast will also be available on the Company’s website.

    About FreightCar America

    FreightCar America, Inc. is a diversified manufacturer of railroad freight cars that also supplies railcar parts and leases freight cars through its FreightCar America Leasing Company subsidiaries. FreightCar America designs and builds high-quality railcars, including open top hopper cars, covered hopper cars, intermodal and non-intermodal flat cars, mill gondola cars, coil steel cars, boxcars and coal cars, and also specializes in the conversion of railcars for repurposed use. FreightCar America is headquartered in Chicago, Illinois and has facilities in the following locations: Castaños, Mexico; Johnstown, Pennsylvania; and Shanghai, People’s Republic of China. More information about FreightCar America is available on its website at www.freightcaramerica.com.

    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 potential financial and operational impacts of the COVID-19 pandemic; 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 other competitive factors. 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.

    INVESTOR & MEDIA CONTACTLisa Fortuna or Stephen Poe
    E-MAILRAIL@alpha-ir.com
    TELEPHONE312-445-2870

    FreightCar America, Inc.

    Condensed Consolidated Balance Sheets
    (Unaudited)

      June 30,
    2022
      December 31,
    2021
     
        
    Assets (in thousands) 
    Current assets      
    Cash, cash equivalents and restricted cash equivalents $21,531  $26,240 
    Accounts receivable, net  23,488   9,571 
    VAT receivable  13,307   31,136 
    Inventories, net  75,845   56,012 
    Related party asset  5,121   8,680 
    Prepaid expenses  11,188   5,087 
    Total current assets  150,480   136,726 
    Property, plant and equipment, net  19,284   18,236 
    Railcars available for lease, net  19,852   20,160 
    Right of use asset  16,033   16,669 
    Other long-term assets  6,705   8,873 
    Total assets $212,354  $200,664 
             
    Liabilities and Stockholders’ Equity      
    Current liabilities      
    Accounts and contractual payables $46,767  $41,185 
    Related party accounts payable  5,454   8,870 
    Accrued payroll and other employee costs  1,883   2,912 
    Reserve for workers' compensation  1,271   1,563 
    Accrued warranty  4,788   2,533 
    Customer deposits  18,706   3,300 
    Deferred income state and local incentives, current     1,291 
    Lease liability, current  1,623   1,955 
    Other current liabilities  5,626   5,711 
    Total current liabilities  86,118   69,320 
    Long-term debt, net of current portion  81,960   79,484 
    Warrant liability  34,498   32,514 
    Accrued pension costs     35 
    Deferred income state and local incentives, long-term     1,216 
    Lease liability, long-term  15,995   16,617 
    Other long-term liabilities  3,934   3,134 
    Total liabilities  222,505   202,320 
    Stockholders’ deficit      
    Preferred stock -  - 
    Common stock  198   190 
    Additional paid-in capital  86,380   83,742 
    Accumulated other comprehensive loss  (5,355)  (5,522)
    Accumulated deficit  (91,374)  (80,066)
    Total stockholders' deficit  (10,151)  (1,656)
    Total liabilities and stockholders’ deficit $212,354  $200,664 
             

    FreightCar America, Inc.
    Condensed Consolidated Statements of Operations
    (Unaudited)

      Three Months Ended  Six Months Ended 
      June 30,  June 30, 
      2022  2021  2022  2021 
        
      (In thousands, except for share and per share data) 
        
    Revenues $56,786  $37,354  $150,022  $69,724 
    Cost of sales  50,197   35,357   133,375   66,411 
    Gross profit  6,589   1,997   16,647   3,313 
    Selling, general and administrative expenses  4,053   6,294   14,766   15,445 
    Restructuring and impairment charges     (120)     6,530 
    Operating income (loss)  2,536   (4,177)  1,881   (18,662)
    Interest expense  (5,757)  (3,212)  (11,462)  (5,714)
    Gain (loss) on change in fair market value of warrant liability  18,746   3,452   (1,984)  (18,676)
    Other income  661   230   2,157   345 
    Income (loss) before income taxes  16,186   (3,707)  (9,408)  (42,707)
    Income tax provision  1,647   504   1,900   636 
    Net income (loss) $14,539  $(4,211) $(11,308) $(43,343)
    Net income (loss) per common share- basic $0.58  $(0.24) $(0.47) $(2.19)
    Net income (loss) per common share - diluted $0.58  $(0.24) $(0.47) $(2.19)
    Weighted average common shares outstanding – basic  24,499,784   20,160,410   23,994,327   20,084,199 
    Weighted average common shares outstanding – diluted  24,499,784   20,160,410   23,994,327   20,084,199 
                     

    FreightCar America, Inc.
    Segment Data
    (Unaudited)

      Three Months Ended  Six Months Ended 
      June 30,  June 30, 
      2022  2021  2022  2021 
    Revenues:            
    Manufacturing $53,606  $35,158  $143,731  $65,177 
    Corporate and Other  3,180   2,196   6,291   4,547 
    Consolidated revenues $56,786  $37,354  $150,022  $69,724 
                 
    Operating income (loss):            
    Manufacturing $4,900  $237  $13,416  $(5,781)
    Corporate and Other  (2,364)  (4,414)  (11,535)  (12,881)
    Consolidated operating income (loss) $2,536  $(4,177) $1,881  $(18,662)
                     

    FreightCar America, Inc.
    Condensed Consolidated Statements of Cash Flows
    (Unaudited)

      Six Months Ended June 30, 
      2022  2021 
        
    Cash flows from operating activities (in thousands) 
        
    Net loss $(11,308) $(43,343)
    Adjustments to reconcile net loss to net cash flows used in operating activities:      
    Restructuring and impairment charges     6,530 
    Depreciation and amortization  2,060   2,196 
    Non-cash lease expense on right-of-use assets  636   887 
    Recognition of deferred income from state and local incentives  (2,507)  (1,110)
    Loss on change in fair market value for warrant liability  1,984   18,676 
    Stock-based compensation recognized  1,490   2,961 
    Non-cash interest expense  7,472   1,981 
    Other non-cash items, net     96 
    Changes in operating assets and liabilities, net of acquisitions:      
    Accounts receivable  (13,917)  916 
    VAT receivable  16,940   (16,814)
    Inventories  (16,926)  (6,814)
    Other assets  (7,281)  (6,263)
    Related party asset, net  143   (2,769)
    Accounts and contractual payables  3,525   10,633 
    Accrued payroll and employee benefits  (1,028)  (802)
    Income taxes payable  1,036   (360)
    Accrued warranty  2,255   (2,366)
    Lease liability  (954)  (1,180)
    Customer deposits  15,406    
    Other liabilities  (1,527)  (6,749)
    Accrued pension costs and accrued postretirement benefits  105   (415)
    Net cash flows used in operating activities  (2,396)  (44,109)
             
    Cash flows from investing activities      
    Maturity of restricted certificates of deposit     182 
    Purchase of property, plant and equipment  (2,808)  (1,433)
    Proceeds from sale of property, plant and equipment and railcars available for lease     433 
    Net cash flows used in investing activities  (2,808)  (818)
             
    Cash flows from financing activities      
    Proceeds from issuance of long-term debt     16,000 
    Deferred financing costs     (480)
    Borrowings on revolving line of credit  49,282   7,220 
    Repayments on revolving line of credit  (48,770)  (11,068)
    Employee stock settlement  (13)  (7)
    Payment for stock appreciation rights exercised  (4)  (55)
    Net cash flows provided by financing activities  495   11,610 
             
    Net decrease in cash and cash equivalents  (4,709)  (33,317)
    Cash, cash equivalents and restricted cash equivalents at beginning of period  26,240   54,047 
    Cash, cash equivalents and restricted cash equivalents at end of period $21,531  $20,730 
             
    Supplemental cash flow information      
    Interest paid $3,990  $2,813 
    Income tax refunds received, net of payments $  $5 
    Non-cash transactions      
    Change in unpaid construction in process $(8) $530 
    Accrued PIK interest paid through issuance of PIK Note $722  $553 
    Issuance of warrants $8,560  $ 
    Issuance of equity fee $2,000  $ 
           

    FreightCar America, Inc.
    Reconciliation of income before taxes to EBITDA(1) and Adjusted EBITDA(2)
    (Unaudited)

     Three Months Ended
    June 30,
      Six Months Ended
    June 30,
      2022  2021    2022  2021 
               
    Loss before income taxes$16,186 $(3,707)  $(9,408)$(42,707)
    Depreciation & Amortization 1,036  999    2,060  2,196 
    Interest Expense, net 5,757  3,212    11,462  5,714 
    EBITDA 22,979  504    4,114  (34,797)
               
    Change in Fair Value of Warrant(a) (18,746) (3,452)   1,984  18,676 
    Restructuring and impairment charges(b) -  (120)   -  6,530 
    Alabama Grant Amortization(c) -  (555)   (1,857) (1,110)
    Transaction Costs(d) -  296    -  296 
    Consulting Costs(e) 412  -    762  - 
    Corporate Realignment(f) 1,075  -    1,260  - 
    Legal Reserve(g) -  -    -  500 
    Plant Transition Costs(h) -  140    -  2,386 
    Stock Based Compensation (2,754) 299    1,490  2,961 
    Other, net (661) (230)   (2,157) (345)
    Adjusted EBITDA$2,305 $(3,118)  $5,596 $(4,903)

    (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 (income) expense associated with the change in fair market value of the Company’s warrant liability.
    b)   The Company incurred certain restructuring costs related to severance and other costs related to its shut-down of the Shoals and Roanoke facilities.
    c)   The Company amortizes deferred grant income to cost of goods sold that represents a non-cash reduction to its gross margin (loss).
    d)   The Company incurred certain costs during 2021 for nonrecurring professional services associated with its financing arrangements.
    e)   The Company incurred certain non-recurring consulting costs during the fourth quarter of 2021 and first quarter of 2022.
    f)   The Company incurred certain non-recurring corporate realignment costs in the first quarter of 2022.
    g)   During the first and fourth quarters of 2021, the Company recognized charges related to a legal dispute.
    h)   During 2020, the Company implemented a program to shift production originally planned for its U.S. plants to its Castaños facility. This adjustment represents non-recurring costs associated with moving inventory and equipment to its Castaños facility.

    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.


    Primary Logo

Опубликовать