FreightCar America, Inc. (RAIL)
Chart Events
Performance Outlook
| Previous Close | 1.7200 |
| Open | 1.7400 |
| Bid | 2.2000 x 900 |
| Ask | 2.2500 x 2200 |
| Day's Range | 1.7400 - 2.1900 |
| 52 Week Range | 0.7300 - 2.8700 |
| Volume | 2,040,439 |
| Avg. Volume | 264,893 |
| Market Cap | 31.225M |
| Beta (5Y Monthly) | 1.79 |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | -6.4240 |
| Earnings Date | Feb 24, 2021 - Mar 01, 2021 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | Aug 15, 2017 |
| 1y Target Est | 2.33 |
- GlobeNewswire
FreightCar America, Inc. Announces Receipt of Stockholder Approval for Issuance of Warrant and Funding of New Term Loan
New secured term loan will bolster balance sheet and provide necessary capital to drive strategic growthCHICAGO, Nov. 24, 2020 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ: RAIL) (“FreightCar America” or the “Company”) today announced that, at its Special Meeting of Stockholders (the “Special Meeting”), FreightCar America stockholders approved the issuance of a warrant under its previously announced new secured term loan facility with financing partner CO Finance LVS VI LLC (the “Lender”), as well as the funding of the term loan under the facility. “I want to express our gratitude to the stockholders of FreightCar America for voting today to approve the new term loan financing, effectively securing the future of our company and putting FreightCar America in a position to succeed and thrive going forward,” said Jim Meyer, Chief Executive Officer of FreightCar America. “The new financing arrangement, in partnership with our lender, marks the last essential step in the competitive repositioning of our business operations. This new secured term loan will not only help support our capital needs for production and future operational expansions at our single production facility in Castaños, Mexico, but it effectively enables the Company to execute on our strategic repositioning and growth strategy. We are thankful for the support of our stockholders as FreightCar America embarks on a path towards meaningful stockholder value creation.”About FreightCar AmericaFreightCar America, Inc. manufactures a wide range of railroad freight cars, supplies rail car parts and leases freight cars through its FreightCar America Leasing Company subsidiaries. FreightCar America designs and builds high-quality rail cars, including bulk commodity cars, covered hopper cars, intermodal and non-intermodal flat cars, mill gondola cars, coil steel cars, boxcars, coal cars and also specializes in the conversion of rail cars for repurposed use. It is headquartered in Chicago, Illinois and has facilities in the following locations: Cherokee, Alabama; Castaños, Mexico; Johnstown, Pennsylvania; and Shanghai, People’s Republic of China. More information about FreightCar America is available on its website at www.freightcaramerica.com.Forward-Looking StatementsThis 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: risks relating to the potential financial and operational impacts of the COVID-19 pandemic; the Shoals facility, including the facility not meeting internal assumptions or expectations and unforeseen liabilities from Navistar;; 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 other competitive factors. 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.Investor & Media ContactAlpha IR Group Joe Caminiti or Elizabeth Steckel 312-445-2870 RAIL@alpha-ir.com
- Benzinga
FreightCar America Justifies Production Move To Mexico
The COVID-19 pandemic, high number of railcars in storage and low rail volumes hastened FreightCar America (NASDAQ: RAIL) decision to move all of its railcar production to Mexico.In September, FreightCar America said it would close its Shoals facility in Alabama and move all of its railcar production to the Castaños facility in Mexico by 2021. It had previously taken part in a 50-50 joint venture (JV) for the facility but it acquired the other 50% from the JV partner this fall, meaning that FreightCar America now fully owns the facility. "We must change our cost structure and we must do so quickly. We cannot afford to sustain the current level of losses and we must put quarters like this one behind us once and for all. This move gets us to where we need to be," said FreightCar America Chief Commercial Officer Matt Tonn during his company's third-quarter earnings call Tuesday. The company reported that it sustained a net loss of $40.3 million, or $3.03 per diluted share, in the third quarter of 2020 compared with a net loss of $35.7 million, or $2.83 per diluted share, a year ago.Tonn explained further, "The bottom line is this was the best solution available to us. We will not find a better deal. And remember that we are in the middle of a pandemic, causing great uncertainty. We need to reposition this business and we need to do it now. We need this capital to complete the restructuring, reassure our customers that we have the same power, backstop the business through the pandemic and fund our future working capital and growth investment needs."By moving all of its railcar production to Mexico, FreightCar America hopes to solidify its role as a "pure-play manufacturer" as opposed to having a lease fleet to fall back on like its competitors, according to FreightCar America President and CEO Jim Meyer. "Many people know the majority of railcars purchased every year are purchased by leasing companies. Our built competitors, of course, compete in that space as well. We don't," Meyer said. "And so the idea that a leasing company can come and work with us and know that there's not a competitive or conflicting discussion potentially, it resonates very well with our customers."Meyer continued, "So our position is a pure-play manufacturer. But because that's our only business principally, we need to be, frankly, very, very good. We need to be the very best at it. And we think we can do that. And we think what we'll define best is a combination of cost and quality and on-time performance. So that's the position and....the ideas for the underlying structure behind it."The company expects its "break-even economics" to be less than 2,000 cars per year, and the facility will have the ability to scale quickly to increase production, Meyer said.The facility is now fully certified by the Association of American Railroads, and FreightCar America will begin shipping its first railcars from the facility this week, according to Meyer.View more earnings on RAILWith production moving to Castaños, FreightCar America is closing its Shoals facility in Cherokee, Alabama, and all railcar production will move to Castaños by early 2021. It has also negotiated the early termination of its lease at Shoals.The production of aftermarket parts will remain in Richland, Pennsylvania, according to Meyer.Third-quarter financial resultsFreightCar America expects the majority of its backlog of 2020 orders to be shipped in the second half of the year. The company shipped fewer cars in the third quarter so that it could shift some of its orders from Shoals to Castaños and take advantage of the certification timing and the improved economics of the new facility, said FreightCar America Chief Financial Officer Chris Eppel.The company expects to deliver between 750 and 850 railcars in the second half of 2020. FreightCar America's order backlog was 1,776 railcars at the end of the third quarter, compared with 1,839 railcars at the end of the second quarter. Backlog value is estimated at $195 million.Gross loss was $4.1 million in the third quarter, improving from a gross loss of $6.1 million in the second quarter of 2020 and a gross loss of $5.4 million in the third quarter of 2019 amid cost reductions and a mix of higher-margin railcars, offset by lower production volumes. Meanwhile, the third-quarter net loss of $40.3 million was partially attributable to $30.1 million in restructuring impairment charges that arose from FreightCar America's exit from its Shoals facility, Eppel said.(FreightCar America)Subscribe to FreightWaves' e-newsletters and get the latest insights on freight right in your inbox.Click here for more FreightWaves articles by Joanna Marsh.Related articles:FreightCar America closing Alabama facility, consolidating operations to MexicoFreightCar America sees ‘pockets of opportunity'FreightCar America temporarily suspends production at Alabama facilitySee more from Benzinga * Click here for options trades from Benzinga * The Impact Of COVID-19 On The Food And Beverage Supply Chain Could Be Long Lasting * J.B. Hunt Sees Elevated Demand Through At Least Q1(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
- GlobeNewswire
FreightCar America, Inc. Reports Third Quarter 2020 Results
Company remains focused on completing final steps to reposition businessCastaños, Mexico manufacturing operation received industry certifications and is now shipping railcarsSecond half delivery guidance narrowed to range between 750 and 850 railcars CHICAGO, Nov. 09, 2020 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ: RAIL) today reported results for the third quarter ended September 30, 2020.Business Highlights * Third quarter revenue of $25.2 million on deliveries of 163 railcars * Third quarter net loss attributed to Freight Car America. Inc. (“FCA”) of $40.3 million, or $3.03 per share, including $30.1 million, or $2.26 per share, of restructuring and impairment charges, $26.6 million of which is non-cash * Total cash, cash equivalents, restricted cash equivalents, marketable securities and restricted certificates of deposit of $32.9 million as of September 30, 2020 * Backlog on September 30, 2020 totaled 1,776 railcars, including 100 railcars ordered during the quarter, with an aggregate value of approximately $195 million * Finalized early termination of the lease at Cherokee, Alabama (“Shoals”) manufacturing facility effective February 28, 2021 * Now owns 100% of its new Castaños, Mexico manufacturing operation (“Castaños”), where all future railcar manufacturing is expected to be based by February 2021 * Obtained new asset-backed credit facility to support the business and repositioning * Entered into new $40 million secured term loan agreement with a global investment management firm (“Lender”), with funding subject to stockholder approval, to strengthen balance sheet and drive future growth strategy * Began shipping cars from Castaños, Mexico facility in early November and received several small orders for the new facility post quarter-end * Second half 2020 delivery outlook narrowed to range between 750 and 850 railcars“During the third quarter, FreightCar America made substantial progress towards the final steps of its business transformation. We completed the acquisition of the remaining portion of the Castaños joint venture, successfully started production, achieved our Association of American Railroads (“AAR”) plant certifications, and are starting to ship to customers this week. By moving all production to Mexico by early 2021, we have reset our cost-base and are multiple steps closer to reaching our goal to become the highest quality and lowest cost producer in the industry,” said Jim Meyer, President and Chief Executive Officer of FreightCar America. “Our former joint venture partners are among the best in the industry and we have solidified them as part of the team including an operational leadership role and as stockholders with board representation.”Meyer continued, “Our industry remains in a cyclical downturn, which was intensified by the pandemic. Accelerating our repositioning effort to the finish line now greatly improves our ability to outlast the pandemic and then re-emerge in a position of strength. Our new breakeven is less than 2,000 railcars per year, and the Castaños factory is quickly scalable once we see positive industry trends. To support the accelerated finish and new business structure, we have obtained a new asset-backed credit facility, and we will have a new $40 million secured term loan following successful completion of the related stockholder vote. This term loan is vital to backstop the business during the elongated industry downcycle, support the final few steps of the transformation, and fund future working capital and growth investment needs.”Meyer concluded, “Our team at the Shoals factory remains focused on completing our customer commitments at that facility before we close the plant in February 2021. Given our progress to date, we are narrowing our previous forecast for second half deliveries to range between 750 and 850 railcars. Finally, our business repositioning and transition to Castaños are being extremely well received by our customers and we anticipate no lost time as we complete the move. We look forward completing our repositioning and believe it will allow us to drive both higher levels growth and profitability as our industry enters its next upcycle.”Third Quarter Results * Consolidated revenues were $25.2 million in the third quarter of 2020, compared to $17.5 million in the second quarter of 2020 and $40.7 million in the third quarter of 2019. The Company delivered 163 railcars in the third quarter of 2020, compared to 100 in the second quarter of 2020 and 467 railcars in the third quarter of 2019. * The Company had a backlog totaling 1,776 railcars at September 30, 2020, valued at approximately $195 million. * Consolidated operating loss for the third quarter of 2020 was $41.3 million, compared to an operating loss of $36.3 million for the third quarter of 2019. Net loss attributable to FreightCar America, Inc. (“FCA”) in the third quarter of 2020 was $40.3 million, or $3.03 per diluted share, compared to a net loss attributable to FCA of $35.7 million, or $2.83 per diluted share, in the third quarter of 2019. Both consolidated operating loss and net loss attributable to FCA included restructuring and impairment charges of $30.1 million in the third quarter of 2020 and $23.0 million in the third quarter of 2019. * Inventories increased to $60.2 million, from $25.1 million as of December 31, 2019, to support expected deliveries in the second half of 2020. * Total cash, cash equivalents, restricted cash equivalents, marketable securities and restricted certificates of deposit were $32.9 million at the end of the third quarter, compared to $70.0 million as of December 31, 2019.Third Quarter 2020 Conference Call & Webcast InformationThe Company will host a conference call and live webcast on Tuesday, November 10, 2020 at 11:00 a.m. (Eastern Standard Time) to discuss its third quarter 2020 financial results. Investors, analysts, and members of the media interested in listening to the live presentation are encouraged to join a webcast of the call, available on the Company’s website at:Event URL: http://public.viavid.com/index.php?id=142262Interested parties may also participate in the call by dialing 877-407-0789 or 201-689-8562 and should use confirmation number 13712647. Please dial in approximately 10 to 15 minutes prior to the start time of the call to ensure your participation. An audio replay of the conference call will be available beginning at 2:00 p.m. (Eastern Standard Time) on November 10, 2020 until 11:59 p.m. (Eastern Standard Time) on November 24, 2020. To access the replay, please dial 844-512-2921 or 412-317-6671. The replay pass code is 13712647. An audio replay of the call will be available on the Company’s website within two days following the earnings call.About FreightCar AmericaFreightCar America, Inc. is a diversified manufacturer of railroad freight cars, that also supplies railcar parts and leases freight cars through its FreightCar America Leasing Company subsidiaries. FreightCar America designs and builds high-quality railcars, including open top hopper cars, covered hopper cars, intermodal and non-intermodal flat cars, mill gondola cars, coil steel cars, boxcars, coal cars, and also specializes in the conversion of railcars for repurposed use. It is headquartered in Chicago, Illinois and has facilities in the following locations: Cherokee, Alabama; Castaños, Mexico; Johnstown, Pennsylvania; and Shanghai, People’s Republic of China. More information about FreightCar America is available on its website at www.freightcaramerica.com.Forward-Looking StatementsThis 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: risks relating to the potential financial and operational impacts of the COVID-19 pandemic; the risk that our stockholders may not approve the issuance of the common stock underlying the warrant or that the term loan might not be funded; the Shoals facility, including the facility not meeting internal assumptions or expectations and unforeseen liabilities from Navistar; 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 other competitive factors. 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.Important InformationThis material may be deemed to be solicitation material in respect of the special meeting to be held on November 24, 2020. In connection with the special meeting, the Company has filed a definitive proxy statement with the United States Securities and Exchange Commission (the “SEC”). BEFORE MAKING ANY VOTING OR INVESTMENT DECISIONS, INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE SPECIAL MEETING. The definitive proxy statement has been mailed to stockholders who are entitled to vote at the special meeting. Stockholders will also be able to obtain a copy of the definitive proxy statement free of charge by directing a request to the Company’s Vice President Finance, Chief Financial Officer, Treasurer and Corporate Secretary. In addition, the definitive proxy statement is available free of charge at the SEC’s website, www.sec.gov.INVESTOR & MEDIA CONTACTJoe Caminiti or Elizabeth Steckel TELEPHONE312-445-2870 FreightCar America, Inc. Condensed Consolidated Balance Sheets (Unaudited) September 30, 2020 December 31, 2019 Assets(in thousands, except for share and per share data) Current assets Cash, cash equivalents and restricted cash equivalents$32,757 $66,257 Restricted certificates of deposit 182 3,769 Accounts receivable, net of allowance for doubtful accounts of $1,063 and $91, respectively 10,293 6,991 Inventories, net 60,186 25,092 Assets held for sale 10,383 - Income tax receivable 109 535 Other current assets 4,737 7,035 Total current assets 118,647 109,679 Property, plant and equipment, net 19,443 38,564 Railcars available for lease, net 38,139 38,900 Right of use asset 34,059 56,507 Other long-term assets 817 1,552 Total assets$211,105 $245,202 Liabilities and Stockholders’ Equity Current liabilities Accounts and contractual payables$20,606 $11,713 Accrued payroll and other employee costs 4,258 1,389 Reserve for workers' compensation 3,475 3,210 Accrued warranty 7,508 8,388 Customer deposits 29,775 5,123 Deferred income state and local incentives, current 2,219 2,219 Lease liability, current 15,102 14,960 Current portion of long-term debt 15,825 - Other current liabilities 4,750 2,428 Total current liabilities 103,518 49,430 Long-term debt, net of current portion 4,375 10,200 Accrued pension costs 5,754 6,510 Deferred income state and local incentives, long-term 3,058 4,722 Lease liability, long-term 44,548 53,766 Other long-term liabilities 3,446 3,420 Total liabilities 164,699 128,048 Stockholders’ equity Preferred stock - - Common stock 136 127 Additional paid in capital 83,657 83,027 Treasury stock, at cost (1,341) (989) Accumulated other comprehensive loss (10,359) (10,780) (Accumulated Deficit) Retained earnings (24,236) 45,824 Total FreightCar America stockholders' equity 47,857 117,209 Noncontrolling interest in JV (1,451) (55) Total stockholders' equity 46,406 117,154 Total liabilities and stockholders’ equity$211,105 $245,202 FreightCar America, Inc. Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (In thousands, except for share and per share data) Revenues$25,202 $40,651 $47,857 $185,020 Cost of sales 29,281 46,061 66,883 191,255 Gross loss (4,079) (5,410) (19,026) (6,235) Selling, general and administrative expenses 7,158 7,772 21,105 30,791 Loss on sale of railcars available for lease - 42 - 5,238 Restructuring and impairment charges 30,103 23,032 31,250 24,351 Operating loss (41,340) (36,256) (71,381) (66,615) Interest expense and deferred financing costs (208) (223) (671) (374) Other income 160 363 518 765 Loss before income taxes (41,388) (36,116) (71,534) (66,224) Income tax benefit (75) (387) (78) (576) Net loss (41,313) (35,729) (71,456) (65,648) Less: Net loss attributable to noncontrolling interest in JV (991) - (1,396) - Net loss attributable to FreightCar America$(40,322) $(35,729) $(70,060) $(65,648) Net loss per common share attributable to FreightCar America- basic and diluted$(3.03) $(2.83) $(5.30) $(5.20) Weighted average common shares outstanding – basic and diluted 12,426,872 12,359,478 12,399,687 12,349,670 FreightCar America, Inc. Segment Data (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Revenues: Manufacturing$22,589 $37,868 $40,658 $176,280 Corporate and Other 2,613 2,783 7,199 8,740 Consolidated revenues$25,202 $40,651 $47,857 $185,020 Operating (loss) income: Manufacturing$(36,786) $(30,788) $(56,934) $(43,444) Corporate and Other (4,554) (5,468) (14,447) (23,171) Consolidated operating loss (41,340) (36,256) (71,381) (66,615) FreightCar America, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended September 30, 2020 2019 Cash flows from operating activities (in thousands) Net loss $(71,456) $(65,648) Adjustments to reconcile net loss to net cash flows used in operating activities: Non-cash restructuring and impairment charges 26,868 24,351 Depreciation and amortization 7,954 9,487 Change in inventory reserve 6,206 (1,501) Amortization expense - right-of-use leased assets 4,910 8,168 Recognition of deferred income from state and local incentives (1,665) (1,665) Loss on sale of railcars available for lease - 5,131 Stock-based compensation recognized 296 754 Other non-cash items, net 277 (209) Changes in operating assets and liabilities, net of acquisitions: Accounts receivable (3,302) 9,483 Inventories (41,300) 10,407 Other assets 2,340 (1,706) Accounts and contractual payables 9,062 (11,206) Accrued payroll and employee benefits 3,011 1,254 Income taxes receivable/payable 909 (289) Accrued warranty (880) (1,643) Lease liability (9,110) (13,210) Customer deposits 24,652 (1,719) Other liabilities 2,489 4,625 Accrued pension costs and accrued postretirement benefits (242) (417) Net cash flows used in operating activities (38,981) (25,553) Cash flows from investing activities Purchase of restricted certificates of deposit (4,037) (1,416) Maturity of restricted certificates of deposit 7,624 5,862 Purchase of securities held to maturity - (1,986) Proceeds from maturity of securities - 20,025 Purchase of property, plant and equipment (8,267) (3,292) Proceeds from sale of property, plant and equipment and railcars available for lease 170 11,519 Net cash flows (used in) provided by investing activities (4,510) 30,712 Cash flows from financing activities Proceeds from issuance of long-term debt 10,000 10,200 Employee stock settlement (9) (59) Deferred financing costs - (929) Net cash flows provided by financing activities 9,991 9,212 Net (decrease) increase in cash and cash equivalents (33,500) 14,371 Cash, cash equivalents and restricted cash equivalents at beginning of period 66,257 45,070 Cash, cash equivalents and restricted cash equivalents at end of period $32,757 $59,441
