Adjusted EBITDA was $4.5 million for the year ended December 31, 2010 compared to $40.0 million in the year ended December 31, 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 expense. The Company's gross profit margin decline is primarily attributable to decreased railcar shipments, decreased overall average selling prices due to competitive pricing and the impact of fixed costs in a low production environment. The increase in joint venture losses was primarily driven by losses, due to weak demand, at the Company's axle joint venture, which did not begin production until the third quarter of 2009. The decrease in selling, administrative and other costs, exclusive of stock based compensation expense, 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.The Company's net loss for the year ended December 31, 2010 was affected by the factors discussed above, an increase in stock based compensation expense driven by the increase in the price of the Company's stock, an increase in net interest expense as a result of lower earnings on cash, 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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