ARII American Railcar Industries, Inc. (delisted)

American Railcar Industries, Inc. (ARI or the Company) (NASDAQ: ARII) today reported its first quarter 2010 financial results.

“The railcar industry, while still at a low point of the economic cycle, appears to be picking up momentum with reports showing that railcar loadings have increased and many stored railcars are returning to service. Along with this modest improvement, which may or may not continue, we have received an increased number of requests for quotations and have been successful in securing several orders in 2010. Both of our railcar manufacturing facilities have maintained production through the downturn, albeit at low levels. In spite of the weakness in new railcar manufacturing, our railcar services segment has been strong with 36% growth in revenues, year-over-year, to $16.7 million for the first quarter of 2010. This growth resulted from higher volumes driven by repair plant expansions and repair work performed at our railcar manufacturing plants,” said James Cowan, President and CEO of ARI. “We are also pleased to announce that the financing for Amtek Railcar Industries Private Limited, our Indian joint venture, was completed and a facility is currently under construction to manufacture railcars to service the Indian markets.”

For the three months ended March 31, 2010, revenues were $52.3 million and net losses were $7.0 million or $0.33 per share. In comparison, for the three months ended March 31, 2009, revenues were $156.9 million and net earnings were $2.7 million or $0.13 per share. Revenues were lower in the first quarter of 2010 when compared to the same period of 2009 primarily due to lower railcar shipments and decreased overall average railcar selling prices due to pricing pressures and a change in product mix. These decreases were partially offset by increased railcar repair volumes due to completed facility expansions and the utilization of our railcar manufacturing facilities for railcar repair projects. During the three months ended March 31, 2010, the Company shipped approximately 340 railcars as compared to approximately 1,490 railcars in the same period of 2009. Our backlog was approximately 500 railcars as of March 31, 2010.

EBITDA loss, adjusted to exclude investment activity and stock based compensation expense (Adjusted EBITDA), was $0.3 million in the first quarter of 2010 compared to positive Adjusted EBITDA of $14.1 million in the first quarter of 2009. This decrease resulted primarily from decreased railcar shipment volume, a decrease in gross profit margin and an increase in joint venture losses that was primarily driven by losses at the Company’s axle joint venture. These decreases were partially offset by a decrease in selling, administrative and other costs. The Company’s gross profit margin decline is primarily attributable to decreased overall average selling prices and the impact of fixed costs in a low production environment. Management has and will continue to monitor costs and control discretionary spending. A reconciliation of the Company’s net loss to EBITDA loss and Adjusted EBITDA (both non-GAAP financial measures) is set forth in the supplemental disclosure attached to this press release.

The Company’s net loss for the first quarter of 2010 was affected by lower revenues and gross profit margins, as discussed above, an increase in net interest expense and increased losses from joint ventures all partially offset by a decrease in our selling, administrative and other costs.

ARI will host a webcast and conference call on Thursday, April 29, 2010 at 10:00 am (Eastern Time) to discuss the Company’s first quarter 2010 financial results. To participate in the webcast, please log on to ARI’s investor relations page through the ARI website at www.americanrailcar.com. To participate in the conference call, please dial 800-447-0521 and use participant code 26857596. Participants are asked to logon to the ARI website or dial in to the conference call approximately 10 to 15 minutes prior to the start time.

An audio replay of the call will also be available on the Company’s website promptly following the earnings call.

About American Railcar Industries, Inc.

American Railcar Industries, Inc. is a leading North American designer and manufacturer of hopper and tank railcars. ARI also repairs and refurbishes railcars, provides fleet management services and designs and manufactures certain railcar and industrial components. ARI provides its railcar customers with integrated solutions through a comprehensive set of high quality products and related services.

Forward Looking Statement Disclaimer

This press release contains statements relating to our expected financial performance and/or future business prospects, events and plans that are forward-looking statements. Forward-looking statements represent the Company’s estimates and assumptions only as of the date of this press release. Such statements include, without limitation, statements regarding potential improvements in the railcar industry, the potential for increased order activity, anticipated future production rates and any implication that the Company’s backlog may be indicative of future sales. These forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from the results described in or anticipated by our forward-looking statements. Other potential risks and uncertainties include, among other things: the impact of the current economic downturn, adverse market conditions and restricted credit markets, and the impact of the continuation of these conditions; our reliance upon a small number of customers that represent a large percentage of our revenues and backlog; the health of and prospects for the overall railcar industry; our prospects in light of the cyclical nature of the railcar manufacturing business and the current economic environment; anticipated trends relating to our shipments, revenues, financial condition or results of operations; our ability to manage overhead and production slowdowns; the highly competitive nature of the railcar manufacturing industry; fluctuating costs of raw materials, including steel and railcar components and delays in the delivery of such raw materials and components; fluctuations in the supply of components and raw materials ARI uses in railcar manufacturing; anticipated production schedules for our products and the anticipated financing needs, construction and production schedules of our joint ventures; risks associated with potential joint ventures or acquisitions; the risk of lack of acceptance of our new railcar offerings by our customers; the sufficiency of our liquidity and capital resources; the conversion of our railcar backlog into revenues; compliance with covenants contained in our unsecured senior notes; the impact and anticipated benefits of any acquisitions we may complete; the impact and costs and expenses of any litigation we may be subject to now or in the future; the ongoing benefits and risks related to our relationship with Mr. Carl C. Icahn (the chairman of our board of directors and, through his holdings of Icahn Enterprises LP, our principal beneficial stockholder) and certain of his affiliates; 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.

            CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts)   As of March 31,   December 31, 2010   2009 (unaudited) Assets Current assets: Cash and cash equivalents $ 323,723 $ 347,290 Short-term investments - available-for-sale securities 2,176 3,802 Accounts receivable, net 12,903 11,409 Accounts receivable, due from affiliates 4,102 1,356 Income taxes receivable 1,464 1,768 Inventories, net 41,703 40,063 Deferred tax assets 2,812 2,018 Prepaid expenses and other current assets   4,943     4,898 Total current assets 393,826 412,604   Property, plant and equipment, net 194,611 199,349 Deferred debt issuance costs 2,413 2,568 Interest receivable, due from affiliates 1,590 982 Goodwill 7,169 7,169 Investments in and loans to joint ventures 49,554 41,155 Other assets   1,037     537 Total assets $ 650,200   $ 664,364   Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 18,141 $ 16,874 Accounts payable, due to affiliates 457 576 Accrued expenses and taxes 5,584 4,515 Accrued compensation 8,560 8,799 Accrued interest expense   1,719     6,875 Total current liabilities 34,461 37,639   Senior unsecured notes 275,000 275,000 Deferred tax liability 3,536 7,120 Pension and post-retirement liabilities 6,261 6,279 Other liabilities   2,751     2,686 Total liabilities 322,009 328,724   Commitments and contingencies   Stockholders' equity: Common stock, $.01 par value, 50,000,000 shares authorized, 21,302,296 shares issued and outstanding at March 31, 2010 and December 31, 2009 213 213 Additional paid-in capital 238,789 239,617 Retained earnings 87,192 94,215 Accumulated other comprehensive income   1,997     1,595 Total stockholders' equity   328,191     335,640 Total liabilities and stockholders' equity $ 650,200   $ 664,364               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts, unaudited) For the Three Months Ended March 31, 2010   2009   Revenues: Manufacturing operations (including revenues from affiliates of $12,575 and $48,405 for the three months ended March 31, 2010 and 2009, respectively) $ 35,635 $ 144,670   Railcar services (including revenues from affiliates of $2,841 and $3,533 for the three months ended March 31, 2010 and 2009, respectively)   16,676       12,277   Total revenues 52,311 156,947   Cost of revenue: Manufacturing operations (37,387 ) (130,098 ) Railcar services   (13,968 )     (10,472 ) Total cost of revenue (51,355 ) (140,570 ) Gross profit 956 16,377   Selling, administrative and other (including costs related to affiliates of $154 for both the three months ended March 31, 2010 and 2009, respectively)   (6,087 )     (7,013 ) (Loss) earnings from operations (5,131 ) 9,364   Interest income (including income related to affiliates of $607 and $5 for the three months ended March 31, 2010 and 2009, respectively) 730 1,183 Interest expense (5,321 ) (5,140 ) Other income (loss) (including income related to affiliates of $4 and $0 for the three months ended March 31, 2010 and 2009, respectively) 85 (96 ) Loss from joint ventures   (1,782 )     (842 ) (Loss) earnings before income taxes (11,419 ) 4,469 Income tax benefit (expense)   4,396       (1,743 ) Net (loss) earnings $ (7,023 )   $ 2,726     Net (loss) earnings per common share - basic and diluted $ (0.33 ) $ 0.13 Weighted average common shares outstanding - basic and diluted 21,302 21,302   Dividends declared per common share $ - $ 0.03              

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, unaudited)     For the Three Months Ended March 31, 2010   2009   Operating activities: Net earnings $ (7,023 ) $ 2,726 Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: Depreciation 5,915 5,644 Amortization of deferred costs 175 171 Loss on disposal of property, plant and equipment - 71 Stock based compensation 700 (35 ) Change in interest receivable, due from affiliates (608 ) - Change in investments in joint ventures as a result of loss 1,782 842 Realized gain on short-term investments - available-for-sale securities (81 ) - Unrealized loss on derivatives - 91 (Benefit) provision for deferred income taxes (4,423 ) 712 Recovery for doubtful accounts receivable (26 ) (37 ) Investing activities reclassified from operating activities: Interest income on short-term investments - available-for-sale securities - (647 ) Realized loss on derivatives - 20 Dividends received from short-term investments - available-for-sale securities - (15 ) Changes in operating assets and liabilities: Accounts receivable, net (1,442 ) 10,563 Accounts receivable, due from affiliate (2,746 ) (4,831 ) Income taxes receivable 304 - Inventories, net (1,617 ) 15,867 Prepaid expenses (54 ) (344 ) Accounts payable 1,259 (9,440 ) Accounts payable, due to affiliate (119 ) (1,464 ) Accrued expenses and taxes (4,960 ) (7,368 ) Other   (744 )     (135 ) Net cash (used in) provided by operating activities (13,708 ) 12,391 Investing activities: Purchases of property, plant and equipment (1,491 ) (4,949 ) Sale (purchase) of short-term investments - available-for-sale securities 1,832 (36,841 ) Interest income on short-term investments - available-for-sale securities - 647 Realized loss on derivatives - (20 ) Dividends received from short-term investments - available-for-sale securities - 15 Investments in and loans to joint ventures   (10,205 )     (1,324 ) Net cash used in investing activities (9,864 ) (42,472 ) Financing activities: Common stock dividends   -       (639 ) Net cash used in financing activities   -       (639 ) Effect of exchange rate changes on cash and cash equivalents   5       23   Decrease in cash and cash equivalents (23,567 ) (30,697 ) Cash and cash equivalents at beginning of period   347,290       291,788   Cash and cash equivalents at end of period $ 323,723     $ 261,091              

RECONCILIATION OF NET EARNINGS TO EBITDA AND ADJUSTED EBITDA

(In thousands, unaudited)

    Three months ended March 31,     2010   2009     Net (loss) earnings $ (7,023 ) $ 2,726 Income tax (benefit) expense (4,396 ) 1,743 Interest expense 5,321 5,140 Interest income (730 ) (1,183 ) Depreciation   5,915     5,644   EBITDA $ (913 ) $ 14,070   Expense (income) related to stock appreciation rights compensation 1 700 (35 ) Other (income) loss on short-term investment activity   (81 )   96   Adjusted EBITDA $ (294 ) $ 14,131     1 SARs are cash settled at time of exercise    

EBITDA represents net earnings (loss) before income tax expense, interest expense (income), net of depreciation of property, plant and equipment. The Company believes EBITDA is useful to investors in evaluating ARI’s operating performance compared to that of other companies in the same industry. In addition, ARI’s management uses EBITDA to evaluate 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 operating performance of a company’s business. EBITDA is not a financial measure presented in accordance with U.S. generally accepted accounting principles (U.S. GAAP). Accordingly, when analyzing the Company’s operating performance, investors should not consider EBITDA in isolation or as a substitute for net earnings (loss), 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 similarly titled measures reported by other companies.

Adjusted EBITDA represents EBITDA before share based compensation expense (income) related to stock appreciation rights (SARs), and before gains or losses on investments and derivative instruments. We believe that Adjusted EBITDA is useful to investors evaluating our operating performance, and management also uses Adjusted EBITDA for that purpose. Our SARs (which settle in cash) are revalued each quarter based upon changes in our stock price. Management believes that eliminating the expense (income) associated with our stock based compensation, investments and derivates allows us and our investors to understand better our operating results independent of financial changes caused by the fluctuating price and value of our common stock, investments and derivative instruments. 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 earnings (loss), 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.