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MEDIA CONTACT |
Kevin Bagby |
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TEL. |
(800) 458-2235 |
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FOR IMMEDIATE RELEASE |
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FreightCar America,
Inc. Reports Quarterly Net Income Per Diluted Share of
$1.80 on Sales of $322.5 Million
FreightCar America, Inc. (NASDAQ:RAIL) today reported financial results for the
three months ended March 31, 2007. For the first quarter of 2007, sales were
$322.5 million and net income was $23.0 million, or $1.80 per diluted share.
For the first quarter of 2006, the Company had sales of $292.8 million and net
income of $21.4 million, or $1.67 per diluted share.
The Company’s financial performance reflects increased sales volume of
railcar types other than coal-carrying railcars. For the first quarter of 2007,
22% of sales were for non-coal-carrying railcars, compared to sales in the
first quarter of 2006, which did not include any non-coal-carrying railcars.
EBITDA was $34.7 million in the first quarter of 2007, compared with EBITDA of
$34.9 million in the first quarter of 2006. EBITDA is a non-GAAP financial
measure. A reconciliation of the Company’s net income to EBITDA and information
on the use of EBITDA as a non-GAAP financial measure is set forth in the
supplemental disclosure attached to this press release.
“Profitability remained strong as we diversified our production mix to
include more non-coal-carrying railcar types. Once again this quarter, we
benefited from optimizing the production mix at low cost facilities. We will
continue to focus on cost controls to drive profitability,” said Chris Ragot, President and CEO.
“Orders for new railcars totaled 768 units in the first quarter of 2007,
compared with 2,199 units ordered in the fourth quarter of 2006 and 1,031 units
ordered in the first quarter of 2006. The backlog of unfilled orders was 6,006
units at March 31, 2007, compared with 9,315 units at December 31, 2006, and
17,794 units at March 31, 2006.”
“During this time, our cost reduction activities have significantly
increased, including our ongoing evaluation of manufacturing capacities. Our
strategic initiative to enhance revenue growth through development of other
railcar types is on schedule and we continue to explore other opportunities to
enhance shareholder value.”
During the first quarter of 2007, the Company repurchased 476,599 shares of
common stock under its share repurchase program for an aggregate of $23.5
million.
The Company will host a conference call on Tuesday, May 1, 2007, at 11:00
a.m. (Eastern Daylight Time) to discuss the Company's first quarter financial
results. To participate in the conference call, please dial (800) 230-1085.
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 2:30
p.m. (Eastern Daylight Time) on May 1, 2007, until 11:59 p.m. (Eastern Daylight
Time) on May 7, 2007. To access the replay, please dial (800) 475-6701. The
replay pass code is 870826. 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, with particular
expertise in coal-carrying railcars. In addition to coal cars, FreightCar
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 acceptance of
customer 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. More information about FreightCar
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FreightCar America, Inc. |
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Condensed Consolidated Balance Sheets |
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(Unaudited) |
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March 31, |
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December 31, |
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2007 |
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2006 |
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(In thousands) |
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Assets |
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Current assets |
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Cash and cash equivalents |
$ |
184,455 |
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$ |
212,026 |
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Accounts receivable, net |
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67,675 |
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11,369 |
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Inventories |
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79,281 |
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106,643 |
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Deferred income taxes and other current assets |
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14,831 |
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13,507 |
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Total current assets |
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346,242 |
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343,545 |
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Property, plant and equipment, net |
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27,148 |
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25,905 |
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Goodwill and intangible assets, net |
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27,046 |
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27,194 |
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Deferred income taxes and other assets |
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23,805 |
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23,337 |
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Total assets |
$ |
424,241 |
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$ |
419,981 |
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Liabilities and Stockholders’ Equity |
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Current liabilities |
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Accounts payable |
$ |
103,121 |
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$ |
103,038 |
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Income taxes payable |
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16,630 |
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9,816 |
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Accrued warranty |
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12,798 |
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12,051 |
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Other current liabilities |
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27,934 |
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32,083 |
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Total current liabilities |
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160,483 |
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156,988 |
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Accrued postretirement benefits, less current portion |
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50,283 |
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49,455 |
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Other long-term liabilities |
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12,049 |
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9,669 |
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Total liabilities |
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222,815 |
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216,112 |
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Commitments and contingencies |
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Stockholders’ equity |
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Preferred stock |
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— |
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— |
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Common stock |
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127 |
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127 |
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Additional paid in capital |
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100,649 |
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99,981 |
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Treasury stock, at cost |
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(23,457) |
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— |
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Accumulated other comprehensive loss |
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(26,680) |
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(26,774) |
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Retained earnings |
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150,787 |
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130,535 |
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Total stockholders’ equity |
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201,426 |
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203,869 |
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Total liabilities and stockholders’ equity |
$ |
424,241 |
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$ |
419,981 |
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FreightCar America, Inc. |
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Condensed Consolidated Statements of
Operations |
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(Unaudited) |
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Three Months Ended March 31, |
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2007 |
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2006 |
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(In thousands, except share and per share data) |
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Sales |
$ |
322,451 |
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$ |
292,793 |
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Cost of sales |
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278,318 |
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251,659 |
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Gross profit |
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44,133 |
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41,134 |
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Selling, general and administrative expense (including non-cash stock-based compensation
expense of $668 and $689, respectively) |
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10,286 |
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8,296 |
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Operating income |
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33,847 |
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32,838 |
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Interest income |
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(2,409) |
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(702) |
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Interest expense |
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106 |
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83 |
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Amortization of deferred financing costs |
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77 |
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76 |
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Income before income taxes |
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36,073 |
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33,381 |
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Income tax provision |
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13,121 |
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12,008 |
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Net income |
$ |
22,952 |
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$ |
21,373 |
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Net income per common share – basic |
$ |
1.82 |
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$ |
1.71 |
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Net income per common share – diluted |
$ |
1.80 |
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$ |
1.67 |
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Weighted average common shares
outstanding-basic |
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12,597,791 |
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12,534,188 |
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Weighted average common shares
outstanding-diluted |
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12,744,575 |
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12,772,000 |
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Dividends declared per common share |
$ |
0.06 |
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$ |
0.03 |
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FreightCar America, Inc. |
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Condensed Consolidated Statements of Cash
Flows |
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(Unaudited) |
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Three Months Ended March 31, |
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2007 |
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2006 |
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(In thousands) |
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Cash flows from operating activities |
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Net income |
$ |
22,952 |
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$ |
21,373 |
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Adjustments to reconcile net income to net
cash flows (used in) provided by operating activities: |
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Depreciation and amortization |
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868 |
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2,051 |
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Other non-cash items |
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635 |
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81 |
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Stock-based compensation expense |
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668 |
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689 |
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Changes in operating assets and liabilities: |
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Accounts receivable |
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(56,306) |
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(11,024) |
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Inventories |
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27,362 |
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(28,837) |
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Accounts payable |
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741 |
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31,182 |
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Income tax payable |
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7,005 |
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7,608 |
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Other accrued liabilities and current assets |
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(4,638) |
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(674) |
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Net cash flows (used in) provided by operating activities |
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(713) |
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22,449 |
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Cash flows from investing activities |
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Purchases of property, plant and equipment |
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(2,621) |
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(1,268) |
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Net cash flows used in investing activities |
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(2,621) |
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(1,268) |
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Cash flows from financing activities |
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Payments on long-term debt |
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(16) |
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(18) |
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Stock repurchases |
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(23,457) |
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— |
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Cash dividends paid to stockholders |
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(764) |
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(378) |
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Net cash flows used in financing activities |
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(24,237) |
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(396) |
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Net (decrease) increase in cash and cash equivalents |
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(27,571) |
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|
20,785 |
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Cash and cash equivalents at beginning of period |
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212,026 |
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|
61,737 |
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Cash and cash equivalents at end of period |
$ |
184,455 |
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$ |
82,522 |
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FreightCar America, Inc. |
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Supplemental Disclosure |
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Reconciliation of net income to EBITDA(1) |
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(Unaudited) |
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Three Months Ended |
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March 31, |
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2007 |
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2006 |
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(In thousands) |
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Net income |
$ |
22,952 |
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$ |
21,373 |
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Income tax provision |
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13,121 |
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|
12,008 |
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Interest income |
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(2,409) |
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(702) |
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Interest expense |
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106 |
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|
83 |
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Amortization of deferred financing costs |
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77 |
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|
76 |
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Amortization of intangible assets |
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148 |
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|
148 |
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Depreciation |
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720 |
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|
1,903 |
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EBITDA |
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34,715 |
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|
34,889 |
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(1) EBITDA represents
net income before income tax expense, interest income, interest expense,
amortization and depreciation of property and equipment. 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 operating performance of a 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 similarly titled measures reported by
other companies. |
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FreightCar America, Inc.
Kevin Bagby, 800-458-2235