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.
For the year ended December 31, 2010, revenues were $273.6 million and net losses were $27.0 million or $1.27 per share. In comparison, for the year ended December 31, 2009, revenues were $423.4 million and net earnings were $15.5 million or $0.73 per share. Net earnings for the year ended December 31, 2009 included a pre-tax gain on the sale of corporate bonds of $23.9 million. Revenues were lower in the year ended December 31, 2010 when compared to the same period of 2009 primarily due to a decrease in railcar shipments and an overall decrease in average selling prices due to competitive pricing and a change in product mix. These decreases were partially offset by increased railcar repair volumes. During the year ended December 31, 2010, the Company shipped approximately 2,090 new railcars as compared to approximately 3,690 new railcars in the same period of 2009.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV