The Company’s net loss for the third quarter of 2010 was affected by the factors discussed above, an increase in net interest expense, a decrease in other income and an increase in income tax benefit.
For the nine months ended September 30, 2010, revenues were $178.3 million and net losses were $19.2 million or $0.90 per share. In comparison, for the nine months ended September 30, 2009, revenues were $345.0 million and net earnings were $5.0 million or $0.23 per share. Revenues were lower in the nine months ended September 30, 2010 when compared to the same period of 2009 primarily due to a decrease in railcar shipments, an overall decrease in average selling prices due to pricing pressures and a change in product mix. These decreases were partially offset by increased railcar repair volumes. During the nine months ended September 30, 2010, the Company shipped approximately 1,130 new railcars as compared to approximately 3,080 new railcars in the same period of 2009.
Adjusted EBITDA was $2.0 million for the nine months ended September 30, 2010 compared to $32.1 million in the nine months ended September 30, 2009. This decrease resulted primarily from decreased railcar shipment volume, a decrease in gross profit margin and an increase in joint venture losses, all partially offset by a decrease in selling, administrative and other costs, exclusive of stock based compensation. The Company’s gross profit margin decline is primarily attributable to decreased railcar shipments, decreased overall average selling prices due to competitive pricing pressures and the impact of fixed costs in a low production environment. The increase in joint venture losses was primarily driven by losses at the Company’s axle joint venture, which did not begin production until July 2009. The decrease in selling, administrative and other costs was primarily attributable to a decrease in incentive compensation and outside services along with a non-recurring legal settlement recorded in the first quarter of 2009.