This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

FreightCar America, Inc. Reports Second Quarter 2012 Results

Stock quotes in this article: RAIL

Event URL: https://im.csgsystems.com/cgi-bin/confCast

Conference ID#: 255509

If you need technical assistance, call the toll-free AT&T Conference Casting Support Help Line at 1-888-793-6118. Please note that the webcast is listen-only and webcast participants will not be able to participate in the question and answer portion of the conference call. An audio replay of the conference call will be available beginning at 1:00 p.m. (Eastern Daylight Time) on August 6, 2012 until 11:59 p.m. (Eastern Daylight Time) on September 6, 2012. To access the replay, please dial (800) 475-6701. The replay pass code is 255509. An audio replay of the call will be available on the Company’s website within two days following the earnings call.

FreightCar America, Inc. manufactures railroad freight cars, supplies railcar parts, leases freight cars through its JAIX Leasing Company subsidiary, and provides railcar maintenance, repairs and management through its FreightCar Rail Services, LLC subsidiary. FreightCar America designs and builds coal cars, bulk commodity cars, flat cars, mill gondola cars, intermodal cars, coil steel cars and motor vehicle carriers. It is headquartered in Chicago, Illinois and has facilities in the following locations: Clinton, Indiana, Danville, Illinois, Lakewood, Colorado, Grand Island, Nebraska, Hastings, Nebraska, Johnstown, Pennsylvania, and Roanoke, Virginia. More information about FreightCar America is available on its website at www.freightcaramerica.com.

This press release may contain statements relating to our expected financial performance and/or future business prospects, events and plans that are “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. These potential risks and uncertainties include, among other things: the cyclical nature of our business; adverse economic and market conditions; fluctuating costs of raw materials, including steel and aluminum, and delays in the delivery of raw materials; our ability to maintain relationships with our suppliers of railcar components; our reliance upon a small number of customers that represent a large percentage of our sales; the variable purchase patterns of our customers and the timing of completion, delivery and customer acceptance of orders; the highly competitive nature of our industry; the risk of lack of acceptance of our new railcar offerings by our customers; and the additional risk factors described in our filings with the Securities and Exchange Commission. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.

                       

FreightCar America, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

 

 

June 30, 2012

         

December 31, 2011

(In thousands)
Assets
Current assets
Cash and cash equivalents $     107,442 $ 101,870
Restricted cash 17,004 1,815
Accounts receivable, net 7,249 10,125
Inventories 72,592 72,877
Inventory on lease 23,061
Other current assets 6,056 2,618
Deferred income taxes, net       10,982               10,982  
Total current assets 244,386 200,287
 
Property, plant and equipment, net 36,848 35,984
Railcars available for lease, net 44,042 54,746
Goodwill 22,128 22,128
Deferred income taxes, net 19,067 28,150
Other long-term assets       3,783               4,168  
Total assets $     370,254             $ 345,463  
 

Liabilities and Stockholders’ Equity

Current liabilities
Account and contractual payables $ 37,663 $ 28,110
Accrued payroll and employee benefits 5,152 5,611
Accrued postretirement benefits 5,174 5,174
Accrued warranty 7,773 7,795
Customer deposits 18,798 17,964
Other current liabilities       7,685               5,044  
Total current liabilities 82,245 69,698
Accrued pension costs 12,371 14,202
Accrued postretirement benefits, less current portion 58,894 59,887
Accrued taxes and other long-term liabilities       4,296               4,342  
Total liabilities       157,806               148,129  
 
Stockholders’ equity
Preferred stock
Common stock 127 127
Additional paid in capital 99,825 100,204
Treasury stock, at cost (34,616 ) (35,904 )
Accumulated other comprehensive loss (21,957 ) (22,302 )
Retained earnings       169,069               155,209  
Total stockholders’ equity       212,448               197,334  
Total liabilities and stockholders’ equity

$

    370,254             $ 345,463  
 
               

FreightCar America, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

 
Three Months Ended

June 30,

Six Months Ended

June 30,

  2012         2011         2012         2011  
(In thousands, except share and per share data)
       
Revenues $ 181,206 $ 97,583 $ 400,272 $ 169,823
Cost of sales   164,163         93,618     359,498         163,616  
Gross profit 17,043 3,965 40,774 6,207
Selling, general and administrative expense 7,642 6,870 16,335 12,867
Gain on sale of railcars available for lease   (14 )       (975 )   (962 )       (975 )
Operating income (loss) 9,415 (1,930 ) 25,401 (5,685 )
 
Interest expense, net   (96 )       (54 )   (186 )       (117 )
Income (loss) before income taxes 9,319 (1,984 ) 25,215 (5,802 )
Income tax provision (benefit)   3,756         (2,162 )   9,918         (4,708 )
Net income (loss) 5,563 178 15,297 (1,094 )

Less: Net (loss) income attributable tononcontrolling interest in JV

          (6 )           12  
Net income (loss) attributable to FreightCar America $ 5,563       $ 184   $ 15,297       $ (1,106 )
 

Net income (loss) per common share attributable  to FreightCar America – basic

$ 0.47       $ 0.02   $ 1.28       $ (0.09 )
 

Net income (loss) per common share attributable  to FreightCar America – diluted

$ 0.46       $ 0.02   $ 1.28       $ (0.09 )
 

Weighted average common shares outstanding -  basic

  11,931,565         11,914,883     11,927,992         11,911,469  
 

Weighted average common shares outstanding -  diluted

  11,983,901         11,994,460     11,992,808         11,911,469  
 
Dividends declared per common share $ 0.06       $   $ 0.12       $  
 
                         

FreightCar America, Inc.

Condensed Segment Data

(Unaudited)

 
Three Months Ended

June 30,

Six Months Ended

June 30,

    2012       2011       2012       2011
(In thousands)
Revenues:            
Manufacturing

 

$

 

171,771

$     88,291 $     382,220 $     151,460
Services     9,435               9,292               18,052               18,363  
Consolidated Total

 

$

 

181,206

        $     97,583         $     400,272         $     169,823  
 
Operating Income (Loss):
Manufacturing

 

$

 

15,253

$ 2,107 $ 37,942 $ 2,323
Services 726 1,161 1,379 2,256
Corporate     (6,564 )             (5,198 )             (13,920 )             (10,264 )
Consolidated Total

 

$

 

9,415

        $     (1,930 )       $     25,401         $     (5,685 )
 
     

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 
Six Months Ended

June 30,

2012           2011
(In thousands)
Cash flows from operating activities          
Net income (loss) $   15,297 $   (1,094 )
Adjustments to reconcile net income (loss) to net cashflows provided by (used in) operating activities:
Depreciation and amortization 4,165 4,458
Gain on sale of railcars available for lease (962 ) (975 )
Other non-cash items 609 303
Deferred income taxes 8,868 (4,827 )
Stock-based compensation expense recognized 952 1,093
Changes in operating assets and liabilities:
Accounts receivable 2,876 (73,514 )
Inventories 304 (6,900 )
Inventory on lease (23,061 ) (7,062 )
Other current assets (2,992 ) 2,685
Account and contractual payables 9,178 17,467
Accrued payroll and employee benefits (459 ) (55 )
Income taxes receivable (71 ) 416
Accrued warranty (22 ) (1,096 )
Customer deposits and other current liabilities 2,851 56,895
Deferred revenue, non-current (182 ) (272 )
Accrued pension costs and accrued postretirement benefits     (2,479 )               (4,285 )
Net cash flows provided by (used in) operating activities     14,872                 (16,763 )
Cash flows from investing activities
Restricted cash deposits (15,525 )
Restricted cash withdrawals 336 119

Proceeds from sale of property, plant and equipment, railcars availablefor lease and assets held for sale

10,526

6,531

Purchase price adjustment for business acquired (166 )
Purchases of property, plant and equipment     (3,157 )               (367 )
Net cash flows (used in) provided by investing activities     (7,820 )               6,117  
Cash flows from financing activities
Employee restricted stock settlement (43 ) (65 )
Cash dividends paid to stockholders     (1,437 )                
Net cash flows used in financing activities     (1,480 )               (65 )
 
Net increase (decrease) in cash and cash equivalents 5,572 (10,711 )
Cash and cash equivalents at beginning of period     101,870                 61,780  
Cash and cash equivalents at end of period $   107,442             $   51,069  
 




3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim 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
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David 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
Dividend Stock Advisor
Try it NOW

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
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs