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.
ARI will host a webcast and conference call on Thursday, February 24, 2011 at 10:00 am (Eastern Time) to discuss the Company's fourth quarter and year end 2010 financial results. To participate in the webcast, please log on to ARI's investor relations page through the ARI website at www.americanrailcar.com . To participate in the conference call, please dial 877-745-9389 and use participant code 43595060. Participants are asked to logon to the ARI website or dial in to the conference call approximately 10 to 15 minutes prior to the start time.
An audio replay of the call will also be available on the Company's website promptly following the earnings call.
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 + 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