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Press release from Business Wire

FreightCar America, Inc. Reports Fourth Quarter and Full Year 2012 Results

<p> <b>Highlights</b> </p> <ul> <li class='bwlistitemmargb'> Revenues of $677.4 million, net income of $19.1 million, or $1.60 per share, for the full year 2012 </li> <li class='bwlistitemmargb'> Revenues of $116.6 million, net loss of $1.0 million, or $(0.08) per share, for the fourth quarter of 2012 </li> <li class='bwlistitemmargb'> Coal car demand remains under pressure from low natural gas prices, high coal inventories and reduced electricity demand </li> <li class='bwlistitemmargb'> Cash and short- term investments increased to $155.2 million as of December 31, 2012 </li> <li class='bwlistitemmargb'> Announced sub-lease of Shoals Alabama facility to support strategic non-coal car manufacturing efforts </li> </ul>

Tuesday, February 19, 2013

FreightCar America, Inc. Reports Fourth Quarter and Full Year 2012 Results20:15 EST Tuesday, February 19, 2013 CHICAGO (Business Wire) -- FreightCar America, Inc. (NASDAQ: RAIL) today reported results for the fourth quarter ended December 31, 2012, with revenues of $116.6 million and a net loss of $1.0 million, or $(0.08) per diluted share. For the same quarter in 2011, the Company reported revenues of $187.1 million and net income of $8.5 million, or $0.71 per diluted share. Revenues were $160.6 million and net income was $4.8 million, or $0.40 per diluted share, in the third quarter of last year. “2012 was a good year for FreightCar despite the fact that fourth quarter results were impacted by a decrease in coal car demand and product line change-over costs at both our manufacturing plants,” said Ed Whalen, President and Chief Executive Officer. “As we look forward, 2013 will be a challenging year for our traditional coal car business, but the long term need to replace the Eastern coal car fleet remains. In the near term, we will focus closely on the factors within our control, including improving production efficiency, improving the results of our services business and controlling costs throughout the Company. I am encouraged by the prospects for our non-coal railcar products and the value that our new Shoals facility will bring to our bottom line when operational,” Whalen concluded. FOURTH QUARTER RESULTS In line with Company's expectations, deliveries decreased to 1,308 railcars in the fourth quarter of 2012, which included 528 new railcars and 780 rebuilt railcars. This compares to 2,489 railcars delivered in the fourth quarter of 2011 and 1,618 railcars delivered in the third quarter of 2012. There were 473 units ordered in the fourth quarter of 2012. This compares to 4,481 units ordered in the fourth quarter of 2011 and 225 units ordered in the third quarter of 2012. Total manufacturing backlog was 2,881 units at December 31, 2012, compared to 8,303 units at December 31, 2011 and 3,716 units at September 30, 2012. The Manufacturing segment had revenues of $109.3 million in the fourth quarter of 2012, compared to $179.2 million in the fourth quarter of 2011 and $152.5 million in the third quarter of 2012. Operating income for the Manufacturing segment was $6.5 million in the fourth quarter of 2012, compared to $16.5 million in the fourth quarter of 2011 and $13.9 million in the third quarter of 2012. Revenues for the Services segment were $7.3 million in the fourth quarter of 2012, compared to $7.8 million in the fourth quarter of 2011 and $8.1 million in the third quarter of 2012. Services segment operating income was $0.1 million in the fourth quarter of 2012, compared to $0.5 million in the fourth quarter of 2011 and $0.6 million in the third quarter of 2012. Corporate costs were $6.6 million for the quarter ended December 31, 2012, compared to $7.6 million in the same quarter of 2011 and $6.6 million in the third quarter of 2012. The Company's income tax expense of $0.8 million for the fourth quarter of 2012 included a provision to adjust deferred tax balances due to enacted changes in certain states' statutory tax rates and to reflect a reduction of the blended effective state rate. Cash, cash equivalents, marketable securities and restricted cash as of December 31, 2012 increased to $155.2 million from $144.2 million as of September 30, 2012. The Company's $30.0 million revolving credit facility remains undrawn. Railcars under lease totaled $43.4 million at the end of the fourth quarter of 2012, compared to $51.0 million at the end of the third quarter of 2012. The decrease in railcars under lease reflects sales of leased railcars. FULL YEAR RESULTS Revenues for the fiscal year ended December 31, 2012 were $677.4 million compared to $487.0 million in 2011. Net income in 2012 was $19.1 million, or $1.60 per share, compared to net income of $4.9 million, or $0.41 per diluted share in 2011. The Manufacturing segment revenues increased to $644.0 million in 2012 from $453.1 million in 2011. The increase in revenues reflects higher railcar deliveries and higher average revenue per car. Operating income in 2012 for the Manufacturing segment was $58.3 million, compared to $25.9 million in 2011. Railcar deliveries totaled 8,325 (6,484 new, 441 used and 1,400 rebuilt) for 2012, up 35% from 6,188 railcars delivered in 2011 (5,824 sold and 364 leased). The Services segment had revenues of $33.4 million, down slightly from $33.9 million in 2011. Operating income for the Services segment was $2.1 million in 2012 compared to $3.7 million in 2011, reflecting lower repair volumes and unfavorable work and parts sales mix. Corporate costs of $27.2 million for 2012 were $3.1 million higher than in 2011 due to increased consulting related expenses. The Company's effective tax rate was 41.9% for the full year 2012. The effective tax rate for 2011 was 6.7%, which included a $1.7 million benefit resulting from a change in statutory tax rates and a change in estimated state tax apportionment on deferred tax balances. * * * * * The Company will host a conference call and live webcast on Wednesday, February 20, 2013 at 11:00 a.m. (Eastern Standard Time) to discuss the Company's fourth quarter 2012 financial results and lease of the Shoals facility, which was announced in a separate press release. To participate in the conference call, please dial (800) 230-1093, Confirmation Number 281877. 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: https://im.csgsystems.com/cgi-bin/confCast Conference ID#: 281877 If you need technical assistance, call the toll-free AT&T Conference Casting Support Help Line at 1-888-793-6118. 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 Standard Time) on February 20, 2013 until 11:59 p.m. (Eastern Daylight Time) on March 20, 2013. To access the replay, please dial (800) 475-6701. The replay pass code is 281877. An audio replay of the call will be available on the Company's website within two days following the earnings call. * * * * * FreightCar America, Inc. manufactures railroad freight cars, supplies railcar parts, leases freight cars through its JAIX Leasing Company subsidiary, and provides railcar maintenance, repairs and management through its FreightCar Rail Services, LLC subsidiary. FreightCar America designs and builds coal cars, bulk commodity cars, flat cars, mill gondola cars, intermodal cars, coil steel cars and motor vehicle carriers. It is headquartered in Chicago, Illinois and has facilities in the following locations: Clinton, Indiana, Cherokee, Alabama, Danville, Illinois, Lakewood, Colorado, Grand Island, Nebraska, Hastings, Nebraska, Johnstown, Pennsylvania, and Roanoke, Virginia. More information about FreightCar America is available on its website at www.freightcaramerica.com. 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: 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(Unaudited)   December 31,December 31,2012   2011(In thousands)Assets Current assets Cash and cash equivalents $ 98,509 $ 101,870 Restricted cash 14,700 1,815 Marketable securities 41,978 — Accounts receivable, net 12,987 10,125 Inventories, net 73,842 72,877 Other current assets 7,130 2,618 Deferred income taxes, net   12,079       10,982   Total current assets 261,225 200,287   Property, plant and equipment, net 39,343 35,984 Railcars available for lease, net 43,435 54,746 Goodwill 22,128 22,128 Deferred income taxes, net 18,940 28,150 Other long-term assets   3,494       4,168   Total assets $ 388,565     $ 345,463     Liabilities and Stockholders' Equity Current liabilities Account and contractual payables $ 33,453 $ 28,110 Accrued payroll and employee benefits 6,548 5,611 Accrued postretirement benefits 4,978 5,174 Accrued warranty 7,625 7,795 Customer deposits 36,087 17,964 Other current liabilities   7,885       5,044   Total current liabilities 96,576 69,698 Accrued pension costs 12,193 14,202 Accrued postretirement benefits, less current portion 64,322 59,887 Accrued taxes and other long-term liabilities   4,143       4,342   Total liabilities   177,234       148,129     Stockholders' equity Preferred stock — — Common stock 127 127 Additional paid in capital 100,402 100,204 Treasury stock, at cost (34,488 ) (35,904 ) Accumulated other comprehensive loss (26,139 ) (22,302 ) Retained earnings   171,429       155,209   Total stockholders' equity   211,331       197,334   Total liabilities and stockholders' equity $ 388,565     $ 345,463         FreightCar America, Inc.Condensed Consolidated Statements of Operations(Unaudited)   Three Months Ended December 31,Year Ended December 31,2012   2011   2012   2011(In thousands, except share and per share data)     Revenues $ 116,579 $ 187,060 $ 677,449 $ 486,986 Cost of sales   108,459       170,438     612,463       455,040   Gross profit 8,120 16,622 64,986 31,946 Selling, general and administrative expense 8,171 8,487 32,736 28,660 Gain on sale of railcars available for lease   (13 )     (1,252 )   (989 )     (2,227 ) Operating income (loss) (38 ) 9,387 33,239 5,513   Interest expense, net   (88 )     (54 )   (373 )     (220 ) Income (loss) before income taxes (126 ) 9,333 32,866 5,293 Income tax provision (benefit)   833       851     13,771       354   Net income (loss) (959 ) 8,482 19,095 4,939 Less: Net (loss) income attributable to noncontrolling interest in JV   —       —     —       4   Net income (loss) attributable to FreightCar America $ (959 )   $ 8,482   $ 19,095     $ 4,935     Net income (loss) per common share attributable to FreightCar America – basic $ (0.08 )   $ 0.71   $ 1.60     $ 0.41     Net income (loss) per common share attributable to FreightCar America – diluted $ (0.08 )   $ 0.71   $ 1.60     $ 0.41     Weighted average common shares outstanding - basic   11,938,833       11,922,267     11,932,926       11,916,292     Weighted average common shares outstanding - Diluted   11,938,833       11,931,084     11,969,367       11,962,196     Dividends declared per common share $ 0.06     $ —   $ 0.24     $ —         FreightCar America, Inc.Condensed Segment Data(Unaudited)   Three Months Ended December 31,Year Ended December 31,2012   2011   2012   2011(In thousands)Revenues:     Manufacturing $ 109,306 $ 179,217 $ 644,012 $ 453,060 Services   7,273       7,843       33,437       33,926   Consolidated Total $ 116,579     $ 187,060     $ 677,449     $ 486,986     Operating Income (Loss): Manufacturing $ 6,526 $ 16,513 $ 58,272 $ 25,912 Services 73 457 2,123 3,651 Corporate   (6,637 )     (7,583 )     (27,156 )     (24,050 ) Consolidated Total $ (38 )   $ 9,387     $ 33,239     $ 5,513       Condensed Consolidated Statements of Cash Flows(Unaudited)   Twelve Months EndedDecember 31,2012   2011(In thousands)Cash flows from operating activities   Net income $ 19,095 4,939 Adjustments to reconcile net income to net cash flows provided by operating activities: Depreciation and amortization 8,398 8,821 Gain on sale of railcars available for lease (989 ) (2,227 ) Other non-cash items 381 3 Change in deferred income taxes 10,420 (682 ) Stock-based compensation expense recognized 1,703 2,189 Changes in operating assets and liabilities: Accounts receivable (2,862 ) (5,841 ) Inventories (700 ) (7,945 ) Inventory on lease — — Other assets (4,531 ) 4,203 Accounts and contractual payables 5,144 15,395 Customer deposits and other current liabilities 20,277 14,414 Other changes in working capital (1,855 ) 673 Accrued pension costs and accrued postretirement benefits   (1,482 )     (3,973 ) Net cash flows provided by operating activities   52,999       29,969     Cash flows from investing activities Restricted cash deposits (15,525 ) (1,115 ) Restricted cash withdrawals 2,640 1,622 Purchase of securities held to maturity (41,978 ) — Proceeds from sale of property, plant and equipment and railcars available for lease 10,526 11,682 Purchase price adjustment for business acquired — (166 ) Purchases of property, plant and equipment   (9,085 )     (1,830 ) Net cash flows (used in) provided by investing activities   (53,422 )     10,193     Cash flows from financing activities Employee restricted stock settlement (63 ) (88 ) Cash dividends paid to stockholders (2,875 ) — Excess tax benefit from stock-based compensation   —       16   Net cash flows used in financing activities   (2,938 )     (72 )   Net (decrease) increase in cash and cash equivalents (3,361 ) 40,090 Cash and cash equivalents at beginning of period   101,870       61,780   Cash and cash equivalents at end of period $ 98,509     $ 101,870   FreightCar America, Inc.Joe McNeely, 800-458-2235