EBITDA, adjusted to exclude investment activity and stock based compensation expense (Adjusted EBITDA), was $2.5 million in the fourth quarter of 2010 compared to $7.9 million in the fourth quarter of 2009. This decrease was primarily due to lower gross profit margin, partially offset by an increase in railcar shipments and a decrease in selling, administrative and other costs, exclusive of stock based compensation expense. The Company's gross profit margin decline is primarily attributable to competitive pricing. The decrease in selling, administrative and other costs, exclusive of stock based compensation expense, was primarily attributable to decreased incentive compensation and outside services. A reconciliation of the Company's net loss to EBITDA and Adjusted EBITDA (both non-GAAP financial measures) is set forth in the supplemental disclosure attached to this press release.The Company's net loss for the fourth quarter of 2010 was affected by the factors discussed above, an increase in stock based compensation expense driven by the increases in the price of the Company's stock, an increase in net interest expense, a decrease in other income due to the sale of corporate bonds in 2009 and a change to income tax benefit in 2010 from income tax expense in 2009.
American Railcar Industries, Inc. Reports Results For The Fourth Quarter And The Year Ended December 31, 2010
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