FreightCar America, Inc. Reports Fourth Quarter and Full Year 2020 Results
March 24 2021 - 8:00AM
FreightCar America, Inc. (NASDAQ: RAIL) today reported results for
the fourth quarter and full year ended December 31, 2020.
Business
Highlights
- Fourth quarter
revenue of $60.6 million, up 35% year-over-year, on deliveries of
477 railcars
- Achieved revised
2020 delivery guidance of 750 railcars, despite transitioning
manufacturing from Shoals to Castaños
- Fourth quarter net
loss of $14.4 million, or $0.87 per share, which included $13.3
million of impairment, restructuring and other charges, the
majority of which were non-cash
- Adjusted EBITDA was
$1.7 million, which excludes the previously mentioned
adjustments
- Completed the early
termination of the lease and exited the Cherokee, Alabama
(“Shoals”) manufacturing facility on February 28, 2021, as
planned
- Successfully ramping
up the new manufacturing footprint in Castaños which will support a
2021 delivery outlook of between 1,400 to 1,600 railcars, or nearly
double last year’s total production
- Year-end backlog
totaled 1,389 railcars with an aggregate value of approximately
$146 million
“In spite of the ongoing pandemic which brought
additional economic and operational challenges to our business,
2020 was a transformative year for FreightCar America. We moved our
manufacturing footprint to Castaños and into the newest
purpose-built railcar manufacturing facility in North America and
began shipping product from there in the fourth quarter. We hired a
highly experienced workforce and strengthened our balance sheet to
provide both growth capital and a better overall financial
foundation for the business,” said Jim Meyer, President and Chief
Executive Officer of FreightCar America, Inc. “While there were a
lot of moving parts in the fourth quarter, we delivered sequential
and year-over-year improvement in revenues as well as positive
gross margin during the period.”
Meyer concluded, “We believe that we are
fundamentally transforming FreightCar America’s ability to compete
and win, and are now preparing the business to pivot from
restructuring to growing. Our customers are very pleased by the
progress and are providing us with highly favorable feedback on the
new facility and team. Lastly, even with the ongoing pandemic, we
are seeing encouraging signs of stabilization in the market and
possibly even the early stages of recovery. As a result, we believe
we can more than double our total deliveries in 2021 and begin to
scale the footprint for 2022 assuming conditions warrant. Towards
that end, our Board of Directors recently approved the first
expansion of the new facility, which includes a large fabrication
shop and additional wheel and axle capability. We continue to
believe that we have the right strategy, and the right collection
of assets and talent, to return the business to long-term growth
and prosperity.”
Fourth Quarter Results
- Consolidated
revenues were $60.6 million in the fourth quarter of 2020, compared
to $25.2 million in the third quarter of 2020 and $44.9 million in
the fourth quarter of 2019. The Company delivered 477 railcars in
the fourth quarter of 2020, compared to 163 railcars in the third
quarter of 2020 and 439 railcars in the fourth quarter of
2019.
- Consolidated
operating loss for the fourth quarter of 2020 was $9.2 million,
compared to an operating loss of $9.0 million for the fourth
quarter of 2019.
- Net loss
attributable to FreightCar America, Inc. (“FCA”) in the fourth
quarter of 2020 was $14.4 million, or $0.87 per share, compared to
net loss of $9.5 million, or $0.75 per share, in the fourth quarter
of 2019.
- Both consolidated
operating loss and net loss attributable to FCA for the fourth
quarter of 2020 included $19.0 million of non-cash impairment
charges related to leased railcars, partially offset by $12.9
million of non-cash restructuring gains, largely related to the
termination of the lease at Shoals in the fourth quarter of 2020,
among other items. In the fourth quarter of 2019, consolidated
operating loss and net loss included a $2.0 million charge from the
loss on a sale of 100 railcars previously held in the leasing
fleet, a $6.6 million non-cash gain related to the termination of a
postretirement benefit plan and a net $2.0 million restructuring
gain largely attributed to a $2.4 million non-cash gain on our
Roanoke, VA facility related to the termination of the lease.
- Fourth quarter net
loss also included a non-cash loss on change in fair market value
of the warrant of $3.7 million.
- EBITDA loss for
the fourth quarter was $11.6 million and Adjusted EBITDA was
positive $1.7 million. Adjusted EBITDA excludes the adjustments
mentioned above and those reflected in the table below. EBITDA loss
for the fourth quarter of 2019 was $5.9 million and Adjusted EBITDA
loss was $12.6 million. EBITDA and Adjusted EBITDA are non-GAAP
financial measures. A reconciliation of EBITDA and Adjusted EBITDA
to income before taxes, the most directly comparable GAAP measure,
is provided in the attached supplemental disclosure.
Full Year 2020 Results
- Consolidated
revenues were $108.4 million for fiscal year 2020, compared to
$230.0 million for fiscal year 2019.
- The Company
delivered 751 railcars in 2020, which included 600 new railcars and
151 rebuilt railcars. This compares to 2,276 railcars in 2019,
which included 1,728 new railcars and 548 rebuilt railcars.
- Consolidated
operating loss for 2020 was $80.6 million, which included $18.3
million relating to restructuring and impairment charges and $19.0
million relating to impairment on leased railcars. Consolidated
operating loss for 2019 was $75.6 million, which included a net
$22.4 million of restructuring and impairment charges, $7.3 million
in charges from the loss on sale of railcars previously held in the
leasing fleet, and a $6.6 million non-cash gain related to the
termination of a postretirement benefit plan.
- Net loss
attributable to FCA for 2020 was $84.4 million, or $6.29 per share,
compared to net loss attributable to FCA of $75.2 million, or $5.95
per share, in 2019.
- Inventories
increased to $38.8 million from $25.1 million as of December 31,
2019, due to higher required inventory levels to support the
transition from the Cherokee, Alabama facility to the new
manufacturing operation in Castaños, Mexico.
- Total cash, cash
equivalents, restricted cash equivalents, marketable securities and
restricted certificates of deposit (“total cash”) was $54.2 million
as of December 31, 2020, compared to $70.0 million as of December
31, 2019. Total cash included $40 million in proceeds from the new
secured term loan that was completed in November 2020.
Fourth Quarter 2020 Conference Call & Webcast
Information
The Company will host a conference call and live
webcast on Wednesday, March 24, 2021 at 11:00 a.m. (Eastern
Daylight Time) to discuss its fourth quarter and year end 2020
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 on the Company’s website
at:
Event URL:
http://public.viavid.com/index.php?id=143797
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 13717108. 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 Daylight Time) on
Wednesday, March 24, 2021 until 12:00 a.m. (Eastern Daylight Time)
on Wednesday, April 7, 2021. To access the replay, please dial
(844) 512-2921 or (412) 317-6671. The replay pass code is 13717108.
An audio replay of the call will be available on the Company’s
website within two days following the earnings call.
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, coal cars, and also specializes in
the conversion of railcars for repurposed use. It 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
CONTACT |
Lisa Fortuna or Joe
Caminiti |
E-MAIL |
RAIL@alpha-ir.com |
TELEPHONE |
312-445-2870 |
FreightCar America,
Inc.Condensed Consolidated Balance
Sheets(Unaudited)
(in thousands, except for
share and per share data) |
|
|
|
|
|
|
|
|
|
December 31, 2020 |
|
|
|
December 31, 2019 |
|
Assets |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash equivalents |
$ |
54,047 |
|
|
$ |
66,257 |
|
Restricted certificates of deposit |
|
182 |
|
|
|
3,769 |
|
Accounts receivable, net of allowance for doubtful accounts of
$1,235 and $91, respectively |
|
13,883 |
|
|
|
6,991 |
|
Inventories, net |
|
38,831 |
|
|
|
25,092 |
|
Assets held for sale |
|
10,383 |
|
|
|
- |
|
Income tax receivable |
|
27 |
|
|
|
535 |
|
Prepaid expenses |
|
3,625 |
|
|
|
7,035 |
|
Total current assets |
|
120,978 |
|
|
|
109,679 |
|
Property, plant and equipment,
net |
|
19,642 |
|
|
|
38,564 |
|
Railcars available for lease,
net |
|
20,933 |
|
|
|
38,900 |
|
Right of use asset |
|
18,152 |
|
|
|
56,507 |
|
Other long-term assets |
|
3,037 |
|
|
|
1,552 |
|
Total assets |
$ |
182,742 |
|
|
$ |
245,202 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts and contractual payables |
$ |
18,654 |
|
|
$ |
11,713 |
|
Accrued payroll and other employee costs |
|
2,505 |
|
|
|
1,389 |
|
Reserve for workers' compensation |
|
2,645 |
|
|
|
3,210 |
|
Accrued warranty |
|
5,216 |
|
|
|
8,388 |
|
Customer deposits |
|
4,351 |
|
|
|
5,123 |
|
Deferred income state and local incentives, current |
|
2,219 |
|
|
|
2,219 |
|
Lease liability, current |
|
11,635 |
|
|
|
14,960 |
|
Current portion of long-term debt |
|
17,605 |
|
|
|
- |
|
Other current liabilities |
|
6,319 |
|
|
|
2,428 |
|
Total current liabilities |
|
71,149 |
|
|
|
49,430 |
|
Long-term debt, net of current
portion |
|
37,668 |
|
|
|
10,200 |
|
Warrant liability |
|
12,730 |
|
|
|
- |
|
Accrued pension costs |
|
7,046 |
|
|
|
6,510 |
|
Deferred income state and
local incentives, long-term |
|
2,503 |
|
|
|
4,722 |
|
Lease liability,
long-term |
|
18,549 |
|
|
|
53,766 |
|
Other long-term
liabilities |
|
2,600 |
|
|
|
3,420 |
|
Total liabilities |
|
152,245 |
|
|
|
128,048 |
|
Stockholders’ equity |
|
|
|
|
|
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 December
31, 2020 and December 31, 2019) |
|
- |
|
|
|
- |
|
Common stock, $0.01 par value, 50,000,000 shares authorized,
15,861,406 and 12,731,678 shares issued at December 31,
2020 and December 31, 2019, respectively |
|
159 |
|
|
|
127 |
|
Additional paid in capital |
|
82,064 |
|
|
|
83,027 |
|
Treasury stock, at cost, 327,577 and 44,855 shares at December 31,
2020 and December 31, 2019, respectively |
|
(1,344 |
) |
|
|
(989 |
) |
Accumulated other comprehensive loss |
|
(11,763 |
) |
|
|
(10,780 |
) |
(Accumulated deficit)
retained earnings |
|
(38,619 |
) |
|
|
45,824 |
|
Total FreightCar America
stockholders' equity |
|
30,497 |
|
|
|
117,209 |
|
Noncontrolling interest in
JV |
|
- |
|
|
|
(55 |
) |
Total stockholders'
equity |
|
30,497 |
|
|
|
117,154 |
|
Total liabilities and
stockholders’ equity |
$ |
182,742 |
|
|
$ |
245,202 |
|
FreightCar America, Inc.
Condensed Consolidated Statements of
Operations(Unaudited)
|
|
Three Months EndedDecember
31, |
|
|
|
Twelve Months EndedDecember
31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
(In thousands, except for share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
60,590 |
|
|
$ |
44,938 |
|
|
$ |
108,447 |
|
|
$ |
229,958 |
|
Cost of sales |
|
55,066 |
|
|
|
53,003 |
|
|
|
121,949 |
|
|
|
244,258 |
|
Gross margin
(loss) |
|
5,524 |
|
|
|
(8,065 |
) |
|
|
(13,502 |
) |
|
|
(14,300 |
) |
Selling, general
and administrative expenses |
|
8,710 |
|
|
|
7,511 |
|
|
|
29,815 |
|
|
|
38,302 |
|
Loss on sale of
railcars available for lease |
|
- |
|
|
|
2,028 |
|
|
|
- |
|
|
|
7,266 |
|
Impairment on
leased railcars |
|
18,951 |
|
|
|
- |
|
|
|
18,951 |
|
|
|
- |
|
Gain on
termination of postretirement benefit plan |
|
- |
|
|
|
(6,637 |
) |
|
|
- |
|
|
|
(6,637 |
) |
Restructuring and
impairment charges |
|
(12,925 |
) |
|
|
(1,980 |
) |
|
|
18,325 |
|
|
|
22,371 |
|
Operating
loss |
|
(9,212 |
) |
|
|
(8,987 |
) |
|
|
(80,593 |
) |
|
|
(75,602 |
) |
Interest
expense |
|
(1,554 |
) |
|
|
(235 |
) |
|
|
(2,225 |
) |
|
|
(609 |
) |
Loss on change in
fair market value of warrant liability |
|
(3,657 |
) |
|
|
- |
|
|
|
(3,657 |
) |
|
|
- |
|
Other income |
|
58 |
|
|
|
93 |
|
|
|
576 |
|
|
|
858 |
|
Loss before income
taxes |
|
(14,365 |
) |
|
|
(9,129 |
) |
|
|
(85,899 |
) |
|
|
(75,353 |
) |
Income tax
(benefit) provision |
|
277 |
|
|
|
461 |
|
|
|
199 |
|
|
|
(115 |
) |
Net loss |
|
(14,642 |
) |
|
|
(9,590 |
) |
|
|
(86,098 |
) |
|
|
(75,238 |
) |
Less Net loss
attributable to noncontrolling interest in JV |
|
(259 |
) |
|
|
(55 |
) |
|
|
(1,655 |
) |
|
|
(55 |
) |
|
|
|
|
|
|
|
|
Net loss
attributable to FreightCar America |
$ |
(14,383 |
) |
|
$ |
(9,535 |
) |
|
$ |
(84,443 |
) |
|
$ |
(75,183 |
) |
Net loss per
common share attributable to FreightCar America- basic |
$ |
(0.87 |
) |
|
$ |
(0.75 |
) |
|
$ |
(6.29 |
) |
|
$ |
(5.95 |
) |
Net loss per
common share attributable to FreightCar America- diluted |
$ |
(0.87 |
) |
|
$ |
(0.75 |
) |
|
$ |
(6.29 |
) |
|
$ |
(5.95 |
) |
Weighted average
common shares outstanding - basic |
|
16,508,200 |
|
|
|
12,359,478 |
|
|
|
13,432,428 |
|
|
|
12,352,142 |
|
Weighted average
common shares outstanding - diluted |
|
16,508,200 |
|
|
|
12,359,478 |
|
|
|
13,432,428 |
|
|
|
12,352,142 |
|
Dividends declared
per common share |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
FreightCar America,
Inc.Segment
Data(Unaudited)
|
|
|
|
|
|
|
|
Three Months EndedDecember
31, |
|
Twelve Months EndedDecember
31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
(In thousands) |
|
(In thousands) |
Revenues: |
|
|
|
|
|
|
|
Manufacturing |
$ |
58,048 |
|
|
$ |
42,784 |
|
|
$ |
98,706 |
|
|
$ |
219,064 |
|
Corporate and
Other |
|
2,542 |
|
|
|
2,154 |
|
|
|
9,741 |
|
|
|
10,894 |
|
Consolidated Revenues |
$ |
60,590 |
|
|
$ |
44,938 |
|
|
$ |
108,447 |
|
|
$ |
229,958 |
|
|
|
|
|
|
|
|
|
Operating
(Loss) Income: |
|
|
|
|
|
|
|
Manufacturing |
$ |
(2,097 |
) |
|
$ |
(10,057 |
) |
|
$ |
(59,031 |
) |
|
$ |
(53,501 |
) |
Corporate and
Other |
|
(7,115 |
) |
|
|
1,070 |
|
|
|
(21,562 |
) |
|
|
(22,101 |
) |
Consolidated
Operating (Loss) Income |
$ |
(9,212 |
) |
|
$ |
(8,987 |
) |
|
$ |
(80,593 |
) |
|
$ |
(75,602 |
) |
FreightCar America, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
|
|
|
|
(in
thousands) |
|
|
Year Ended December 31, |
|
|
|
2020 |
|
|
|
2019 |
|
Cash flows from
operating activities |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(86,098 |
) |
|
$ |
(75,238 |
) |
Adjustments to reconcile net
loss to net cash flows used in operating activities: |
|
|
|
|
|
|
Restructuring and impairment charges |
|
|
18,325 |
|
|
|
22,371 |
|
Depreciation and amortization |
|
|
9,202 |
|
|
|
12,438 |
|
Non-cash lease expense on right-of-use assets |
|
|
7,063 |
|
|
|
10,485 |
|
Recognition of deferred income from state and local incentives |
|
|
(2,219 |
) |
|
|
(2,219 |
) |
Loss on change in fair market value for warrant liability |
|
|
3,657 |
|
|
|
- |
|
Loss on sale of railcars available for lease |
|
|
- |
|
|
|
7,197 |
|
Impairment on leased railcars |
|
|
18,951 |
|
|
|
- |
|
Gain on termination of postretirement benefit plan |
|
|
- |
|
|
|
(6,637 |
) |
Deferred income taxes |
|
|
136 |
|
|
|
176 |
|
Stock-based compensation recognized |
|
|
1,034 |
|
|
|
1,225 |
|
Non-cash interest expense |
|
|
1,023 |
|
|
|
225 |
|
Other non-cash items, net |
|
|
4,192 |
|
|
|
(1,200 |
) |
Changes in operating assets and liabilities, net of
acquisitions: |
|
|
|
|
|
|
Accounts receivable |
|
|
(6,892 |
) |
|
|
11,227 |
|
Inventories |
|
|
(17,942 |
) |
|
|
40,649 |
|
Other assets |
|
|
1,763 |
|
|
|
(2,127 |
) |
Accounts and contractual payables |
|
|
3,975 |
|
|
|
(23,961 |
) |
Accrued payroll and employee benefits |
|
|
(2,027 |
) |
|
|
(1,368 |
) |
Income taxes receivable/payable |
|
|
991 |
|
|
|
155 |
|
Accrued warranty |
|
|
(3,172 |
) |
|
|
(921 |
) |
Lease liability |
|
|
(11,553 |
) |
|
|
(17,602 |
) |
Other liabilities |
|
|
1,040 |
|
|
|
6,201 |
|
Accrued pension costs and accrued postretirement benefits |
|
|
(354 |
) |
|
|
(55 |
) |
Net cash flows used in operating activities |
|
|
(58,905 |
) |
|
|
(18,979 |
) |
Cash flows from
investing activities |
|
|
|
|
|
|
Purchase of restricted
certificates of deposit |
|
|
(4,219 |
) |
|
|
(4,981 |
) |
Maturity of restricted
certificates of deposit |
|
|
7,806 |
|
|
|
6,164 |
|
Purchase of securities held to
maturity |
|
|
- |
|
|
|
(1,986 |
) |
Proceeds from maturity of
securities |
|
|
- |
|
|
|
20,025 |
|
Purchase of property, plant
and equipment |
|
|
(9,849 |
) |
|
|
(5,573 |
) |
Proceeds from sale of
property, plant and equipment and railcars available for lease |
|
|
170 |
|
|
|
17,305 |
|
Net cash flows (used in) provided by investing
activities |
|
|
(6,092 |
) |
|
|
30,954 |
|
Cash flows from
financing activities |
|
|
|
|
|
|
Proceeds from issuance of
long-term debt |
|
|
50,000 |
|
|
|
10,200 |
|
Borrowings on revolving line
of credit |
|
|
6,874 |
|
|
|
- |
|
Repayments on revolving line
of credit |
|
|
(95 |
) |
|
|
- |
|
Cash paid to acquire JV
non-controlling interest |
|
|
(172 |
) |
|
|
- |
|
Employee stock settlement |
|
|
(9 |
) |
|
|
(59 |
) |
Deferred financing costs |
|
|
(3,811 |
) |
|
|
(929 |
) |
Net cash flows provided by financing activities |
|
|
52,787 |
|
|
|
9,212 |
|
Net (decrease) increase in
cash and cash equivalents |
|
|
(12,210 |
) |
|
|
21,187 |
|
Cash, cash equivalents and
restricted cash equivalents at beginning of year |
|
|
66,257 |
|
|
|
45,070 |
|
Cash, cash equivalents and
restricted cash equivalents at end of year |
|
$ |
54,047 |
|
|
$ |
66,257 |
|
Supplemental cash flow
information |
|
|
|
|
|
|
Interest paid |
|
$ |
421 |
|
|
$ |
196 |
|
Income tax refunds received,
net of payments |
|
$ |
938 |
|
|
$ |
978 |
|
Stock issued for
acquisition |
|
$ |
3,237 |
|
|
$ |
- |
|
FreightCar America,
Inc.Reconciliation of income before taxes to
EBITDA(1) and Adjusted
EBITDA(2)(Unaudited)
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
December 31, |
|
2020 |
|
|
|
|
2019 |
|
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
$ |
(14,365 |
) |
|
$ |
(9,129 |
) |
|
$ |
(85,899 |
) |
|
$ |
(75,353 |
) |
Depreciation and
amortization |
|
1,248 |
|
|
|
2,951 |
|
|
|
9,202 |
|
|
|
12,438 |
|
Interest expense, net |
|
1,553 |
|
|
|
235 |
|
|
|
2,225 |
|
|
|
609 |
|
EBITDA |
|
(11,564 |
) |
|
|
(5,943 |
) |
|
|
(74,472 |
) |
|
|
(62,306 |
) |
|
|
|
|
|
|
|
|
Change in fair value of
warrant (a) |
|
3,657 |
|
|
|
- |
|
|
|
3,657 |
|
|
|
- |
|
Restructuring and impairment
charges (b) |
|
(12,925 |
) |
|
|
(1,980 |
) |
|
|
18,325 |
|
|
|
22,371 |
|
Impairment of leased railcars
(c) |
|
18,951 |
|
|
|
- |
|
|
|
18,951 |
|
|
|
- |
|
Gain on OPEB settlement
(d) |
|
- |
|
|
|
(6,637 |
) |
|
|
- |
|
|
|
(6,637 |
) |
Loss on railcars available for
lease (e) |
|
- |
|
|
|
2,028 |
|
|
|
- |
|
|
|
7,266 |
|
Alabama grant amortization
(f) |
|
(555 |
) |
|
|
(555 |
) |
|
|
(2,219 |
) |
|
|
(2,219 |
) |
Transaction costs (g) |
|
322 |
|
|
|
- |
|
|
|
465 |
|
|
|
- |
|
Retention and success bonuses
(h) |
|
2,211 |
|
|
|
144 |
|
|
|
3,130 |
|
|
|
144 |
|
Plant transition costs
(i) |
|
1,252 |
|
|
|
- |
|
|
|
2,239 |
|
|
|
- |
|
Stock based compensation
(j) |
|
455 |
|
|
|
471 |
|
|
|
1,034 |
|
|
|
1,225 |
|
Other income |
|
(58 |
) |
|
|
(93 |
) |
|
|
(576 |
) |
|
|
(858 |
) |
Adjusted EBITDA |
$ |
1,746 |
|
|
$ |
(12,565 |
) |
|
$ |
(29,466 |
) |
|
$ |
(41,014 |
) |
(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 associated with the change in fair
market value of warrant liability. |
|
b) |
The Company incurred
certain restructuring costs related to severance and other costs
related to its shutdown of the Shoals and Roanoke facilities during
2019 and 2020. |
|
c) |
During the fourth
quarter of 2020, the Company recorded a non-cash impairment charge
on its leased railcar fleet. |
|
d) |
During the fourth
quarter of 2019, the Company recognized a non-cash gain on the
settlement of its OPEB plan. |
|
e) |
During 2019, the
Company recognized losses on its sale of railcars available for
loss. |
|
f) |
The Company amortizes
deferred grant income to cost of goods sold that represent a
non-cash reduction to its gross margin (loss). |
|
g) |
The Company incurred
certain costs in the fourth quarter of 2020 for nonrecurring
professional services associated with the acquisition of its
Castaños joint venture. |
|
h) |
During 2019, the
Company implemented retention and success bonus programs for
certain employees during its restructuring. |
|
i) |
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. |
|
j) |
This adjustment
removes the non-cash expense associated with the stock-based
compensation. |
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.
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