Company delivers 83% year-over-year revenue growth with strong gross margin
Raises mid-point of full year Adjusted EBITDA guidance
CHICAGO, Nov. 12, 2024 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ: RAIL) ("FreightCar America” or the "Company”), a diversified manufacturer and supplier of railroad freight cars, railcar parts and components, today reported results for the third quarter ended September 30, 2024.
Third Quarter 2024 Highlights
- Revenues of $113.3 million on 961 railcar deliveries, compared to revenues of $61.9 million on 503 railcar deliveries in the third quarter of 2023, up 83% and 91% respectively
- Gross margin of 14.3% with gross profit of $16.2 million, compared to gross margin of 14.9% with gross profit of $9.2 million in the third quarter of 2023
- Net loss of ($107.0) million, or ($3.57) per share and Adjusted net income of $7.3 million, or $0.08 per share, driven by a ($110.0) million non-cash loss on warrant liability due to a significant appreciation in share price
- Adjusted EBITDA of $10.9 million, compared to Adjusted EBITDA of $3.5 million in the third quarter of 2023, up 211%
- Ended the quarter with a backlog of 3,611 units valued at $372 million
Randall continued, "Our pipeline is invigorated, with consistent demand across a broad range of railcar types. As we head into the fourth quarter, we are well positioned to sustain this momentum through our differentiated offerings and unique market approach. Our commitment to innovation and operational flexibility sets us apart in the industry, ensuring that we deliver long-term value for our customers and shareholders.”
Fiscal Year 2024 Outlook
The Company has updated its outlook for fiscal year 2024 as follows:
| Fiscal 2024 Outlook | Year-over-Year
Growth at Midpoint | |
| Revenue | $560 - $600 million | 62.0% |
| Adjusted EBITDA1 | $37 - $39 million | 89.0% |
| Railcar Deliveries | 4,300 - 4,700 Railcars | 48.9% |
1. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA due to the inherent difficulty in forecasting and quantifying the adjustments that are necessary to calculate such non-GAAP measure without unreasonable effort. Material changes to any one of these items could have a significant effect on future GAAP results.
Mike Riordan, Chief Financial Officer of FreightCar America, commented, "Given our strong order activity and delivery performance year to date, we are narrowing and raising the mid-point of our previously issued full-year EBITDA guidance to between $37 million and $39 million while reaffirming our previously stated revenue and delivery guidance. As we move forward, I am confident in our ability to achieve profitable growth and cash generation across the enterprise with an even stronger financial profile.”
Third Quarter 2024 Conference Call & Webcast Information
The Company will host a conference call and live webcast on Tuesday, November 12 at 11:00 a.m. (Eastern Time) to discuss its third quarter 2024 financial results. FreightCar America invites shareholders and other interested parties to listen to its financial results conference call via the following live and recorded methods:
Live Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1693396&tp_key=feca4932b6
Recorded Webcast: A recorded webcast will be available until Tuesday, November 26, 2024, on FreightCar America's website following the conference call date at: https://investors.freightcaramerica.com/news-events/event-calendar/
Teleconference: Dial-in numbers for the live Conference Call are (877) 407-0789 or (201) 689-8562. Please call in at least 10 minutes prior to the start time of the call. An audio replay may be accessed at (844) 512-2921 or (412) 317-6671; Passcode: 13749627.
About FreightCar America
FreightCar America, headquartered in Chicago, Illinois, is a leading designer, producer and supplier of railroad freight cars, railcar parts and components. We also specialize in railcar repairs, complete railcar rebody services and railcar conversions that repurpose idled rail assets back into revenue service. Since 1901, our customers have trusted us to build quality railcars that are critical to economic growth and instrumental to the North American supply chain. To learn more about FreightCar America, visit www.freightcaramerica.com.
Forward-Looking Statements
This press release contains statements relating to our expected financial performance, financial condition, and/or future business prospects, events and/or 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 risks and uncertainties relate to, among other things, the cyclical nature of our business; adverse geopolitical, economic and market conditions, including inflation; material disruption in the movement of rail traffic for deliveries; fluctuating costs of raw materials including steel and aluminum; future changes in U.S. tax laws and regulations or interpretations thereof; 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, and other competitive factors. The factors listed above are not exhaustive. New factors emerge from time to time that may cause our business not to develop as we expect, and it is not possible for us to predict all of them. 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.
Non-GAAP Financial Measures
This press release includes measures not derived in accordance with generally accepted accounting principles ("GAAP”), such as EBITDA, Adjusted EBITDA, Adjusted net income (loss) and Adjusted EPS. These non-GAAP measures should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP and may also be inconsistent with similar measures presented by other companies. Reconciliations of these measures to the applicable most closely comparable GAAP measures, and reasons for the Company's use of these measures, are presented in the attached pages.
| Investor Contact: | [email protected] |
| FreightCar America, Inc.Consolidated Balance Sheets(In thousands, except for share data) | ||||||||
| September 30, 2024 | December 31, 2023 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash, cash equivalents and restricted cash equivalents | $ | 44,830 | $ | 40,560 | ||||
| Accounts receivable, net of allowance for credit losses of $74 and $18 respectively | 24,319 | 6,408 | ||||||
| VAT receivable | 2,489 | 2,926 | ||||||
| Inventories, net | 84,812 | 125,022 | ||||||
| Assets held for sale | 629 | - | ||||||
| Related party asset | 936 | 638 | ||||||
| Prepaid expenses | 10,100 | 4,867 | ||||||
| Total current assets | 168,115 | 180,421 | ||||||
| Property, plant and equipment, net | 30,461 | 31,258 | ||||||
| Railcars available for lease, net | - | 2,842 | ||||||
| Right of use asset operating lease | 2,514 | 2,826 | ||||||
| Right of use asset finance lease | 43,823 | 40,277 | ||||||
| Other long-term assets | 1,036 | 1,835 | ||||||
| Total assets | $ | 245,949 | $ | 259,459 | ||||
| Liabilities, Mezzanine Equity and Stockholders' Deficit | ||||||||
| Current liabilities | ||||||||
| Accounts and contractual payables | $ | 74,355 | $ | 84,417 | ||||
| Related party accounts payable | 2,493 | 2,478 | ||||||
| Accrued payroll and other employee costs | 7,447 | 5,738 | ||||||
| Accrued warranty | 1,493 | 1,602 | ||||||
| Customer deposits | 8,865 | - | ||||||
| Current portion of long-term debt | - | 29,415 | ||||||
| Other current liabilities | 10,196 | 13,711 | ||||||
| Total current liabilities | 104,849 | 137,361 | ||||||
| Warrant liability | 162,382 | 36,801 | ||||||
| Accrued pension costs | 1,226 | 1,046 | ||||||
| Lease liability operating lease, long-term | 2,778 | 3,164 | ||||||
| Lease liability finance lease, long-term | 45,482 | 41,273 | ||||||
| Other long-term liabilities | 1,660 | 2,562 | ||||||
| Total liabilities | 318,377 | 222,207 | ||||||
| Commitments and contingencies | ||||||||
| Mezzanine equity | ||||||||
| Series C Preferred stock, $0.01 par value, 85,412 shares authorized, 85,412 shares issued and outstanding at each of September 30, 2024 and December 31, 2023, respectively. Liquidation value $108,388 and $95,048 at September 30, 2024 and December 31, 2023, respectively. | 83,889 | 83,458 | ||||||
| Stockholders' deficit | ||||||||
| 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 September 30, 2024 and December 31, 2023) | - | - | ||||||
| Common stock, $0.01 par value, 50,000,000 shares authorized, 18,884,838 and 17,903,437 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively | 220 | 210 | ||||||
| Additional paid-in capital | 97,098 | 94,067 | ||||||
| Accumulated other comprehensive income | 84 | 2,365 | ||||||
| Accumulated deficit | (253,719 | ) | (142,848 | ) | ||||
| Total stockholders' deficit | (156,317 | ) | (46,206 | ) | ||||
| Total liabilities, mezzanine equity and stockholders' deficit | $ | 245,949 | $ | 259,459 | ||||
| FreightCar America, Inc. Consolidated Statements of Operations (In thousands, except for share and per share data) | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| September 30, | September 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Revenues | $ | 113,255 | $ | 61,894 | $ | 421,729 | $ | 231,489 | |||||||||
| Cost of sales | 97,059 | 52,669 | 375,700 | 201,824 | |||||||||||||
| Gross profit | 16,196 | 9,225 | 46,029 | 29,665 | |||||||||||||
| Selling, general and administrative expenses | 7,538 | 7,511 | 23,541 | 19,750 | |||||||||||||
| Gain on sale of railcars available for lease | - | - | - | (622 | ) | ||||||||||||
| Loss on pension settlement | - | 313 | 313 | ||||||||||||||
| Litigation settlement | - | - | (3,214 | ) | - | ||||||||||||
| Operating income | 8,658 | 1,401 | 25,702 | 10,224 | |||||||||||||
| Interest expense | (1,577 | ) | (2,037 | ) | (5,815 | ) | (12,988 | ) | |||||||||
| (Loss) gain on change in fair market value of Warrant liability | (110,040 | ) | 4,273 | (125,581 | ) | (1,869 | ) | ||||||||||
| Loss on extinguishment of debt | - | - | - | (14,880 | ) | ||||||||||||
| Other expense | (680 | ) | (228 | ) | (1,419 | ) | (333 | ) | |||||||||
| (Loss) income before income taxes | (103,639 | ) | 3,409 | (107,113 | ) | (19,846 | ) | ||||||||||
| Income tax provision | 3,407 | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
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