American Railcar Industries' CEO Discusses Q2 2012 Results - Earnings Call Transcript
This conference call includes forward-looking statements including statements such as estimates, expectations, intentions and predictions of future financial performance based on currently available information. Participants are directed to our SEC filings and press releases for a description of certain business issues and risks.
As a change in any one could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Also, please note that the company does not undertake any obligation to update any forward-looking statements made during the call.
EBITDA and adjusted EBITDA are non-GAAP financial measures we will discuss today that are reconciled through our net earnings in our press release which was issued yesterday. The press release is available through the Investor Relations page of our website.
Now it is my pleasure to introduce Jim Cowan.
Jim CowanThank you Dale and good morning. Demand for railcars in North America remained strong. The industry reported that approximately 17,900 railcars were delivered and 16,400 railcars were ordered during the second quarter of 2012, producing a book-to-build ratio or 0.92.Industry backlog was approximately 58,700 railcars at the end of June. Approximately 84% of the industry backlog is for tank and hopper railcars, which bodes well for ARI. Going forward, one industry forecast for North America expects new railcar deliveries to be approximately 62,000 cars in 2012 or a very strong year.Demand for tank railcars in North America continues to be very strong. The industry reported that approximately 4,170 tank railcars were delivered and 13,720 tank railcars were ordered during the second quarter of 2012 producing a book-to-build ratio of 3.3.Industry backlog for tank railcars was approximately 42,370 at the end of June or over 70% of the industry backlog. The strength in demand for tank railcars continues to be driven by the oil and gas markets.Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll 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.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
