FreightCar America, Inc. Reports Fourth Quarter and Full Year 2020 Results
FreightCar America (NASDAQ: RAIL) reported 4Q 2020 revenues of $60.6 million, a 35% increase year-over-year and 140% sequentially on deliveries of 477 railcars. The company aims for 1,400 to 1,600 railcar deliveries in 2021, nearly double from 2020. Despite a net loss of $14.4 million for 4Q, adjusted EBITDA was $1.7 million. FreightCar exited the Shoals facility and transitioned to a new manufacturing site in Castaños, Mexico, strengthening its operational foundation despite facing pandemic challenges.
- 4Q 2020 revenues increased 35% year-over-year to $60.6 million.
- Achieved delivery guidance of 750 railcars for 2020.
- Adjusted EBITDA turned positive at $1.7 million in 4Q 2020.
- Year-end backlog reached 1,389 railcars valued at approximately $146 million.
- Plans to double deliveries in 2021 to 1,400 to 1,600 railcars.
- 4Q 2020 net loss of $14.4 million, or $0.87 per share.
- Full year 2020 net loss of $84.4 million, or $6.29 per share, wider than 2019's loss.
- Consolidated operating loss for 2020 was $80.6 million.
Fourth quarter revenues up
Potential of new operating structure exemplified by positive gross margin in fourth quarter
CHICAGO, March 24, 2021 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ: RAIL) today reported results for the fourth quarter and full year ended December 31, 2020.
Business Highlights
- Fourth quarter revenue of
$60.6 million , up35% year-over-year, on deliveries of 477 railcars - Achieved revised 2020 delivery guidance of 750 railcars, despite transitioning manufacturing from Shoals to Castaños
- Fourth quarter net loss of
$14.4 million , or$0.87 per share, which included$13.3 million of impairment, restructuring and other charges, the majority of which were non-cash - Adjusted EBITDA was
$1.7 million , which excludes the previously mentioned adjustments - Completed the early termination of the lease and exited the Cherokee, Alabama (“Shoals”) manufacturing facility on February 28, 2021, as planned
- Successfully ramping up the new manufacturing footprint in Castaños which will support a 2021 delivery outlook of between 1,400 to 1,600 railcars, or nearly double last year’s total production
- Year-end backlog totaled 1,389 railcars with an aggregate value of approximately
$146 million
“In spite of the ongoing pandemic which brought additional economic and operational challenges to our business, 2020 was a transformative year for FreightCar America. We moved our manufacturing footprint to Castaños and into the newest purpose-built railcar manufacturing facility in North America and began shipping product from there in the fourth quarter. We hired a highly experienced workforce and strengthened our balance sheet to provide both growth capital and a better overall financial foundation for the business,” said Jim Meyer, President and Chief Executive Officer of FreightCar America, Inc. “While there were a lot of moving parts in the fourth quarter, we delivered sequential and year-over-year improvement in revenues as well as positive gross margin during the period.”
Meyer concluded, “We believe that we are fundamentally transforming FreightCar America’s ability to compete and win, and are now preparing the business to pivot from restructuring to growing. Our customers are very pleased by the progress and are providing us with highly favorable feedback on the new facility and team. Lastly, even with the ongoing pandemic, we are seeing encouraging signs of stabilization in the market and possibly even the early stages of recovery. As a result, we believe we can more than double our total deliveries in 2021 and begin to scale the footprint for 2022 assuming conditions warrant. Towards that end, our Board of Directors recently approved the first expansion of the new facility, which includes a large fabrication shop and additional wheel and axle capability. We continue to believe that we have the right strategy, and the right collection of assets and talent, to return the business to long-term growth and prosperity.”
Fourth Quarter Results
- Consolidated revenues were
$60.6 million in the fourth quarter of 2020, compared to$25.2 million in the third quarter of 2020 and$44.9 million in the fourth quarter of 2019. The Company delivered 477 railcars in the fourth quarter of 2020, compared to 163 railcars in the third quarter of 2020 and 439 railcars in the fourth quarter of 2019. - Consolidated operating loss for the fourth quarter of 2020 was
$9.2 million , compared to an operating loss of$9.0 million for the fourth quarter of 2019. - Net loss attributable to FreightCar America, Inc. (“FCA”) in the fourth quarter of 2020 was
$14.4 million , or$0.87 per share, compared to net loss of$9.5 million , or$0.75 per share, in the fourth quarter of 2019. - Both consolidated operating loss and net loss attributable to FCA for the fourth quarter of 2020 included
$19.0 million of non-cash impairment charges related to leased railcars, partially offset by$12.9 million of non-cash restructuring gains, largely related to the termination of the lease at Shoals in the fourth quarter of 2020, among other items. In the fourth quarter of 2019, consolidated operating loss and net loss included a$2.0 million charge from the loss on a sale of 100 railcars previously held in the leasing fleet, a$6.6 million non-cash gain related to the termination of a postretirement benefit plan and a net$2.0 million restructuring gain largely attributed to a$2.4 million non-cash gain on our Roanoke, VA facility related to the termination of the lease. - Fourth quarter net loss also included a non-cash loss on change in fair market value of the warrant of
$3.7 million . - EBITDA loss for the fourth quarter was
$11.6 million and Adjusted EBITDA was positive$1.7 million . Adjusted EBITDA excludes the adjustments mentioned above and those reflected in the table below. EBITDA loss for the fourth quarter of 2019 was$5.9 million and Adjusted EBITDA loss was$12.6 million . EBITDA and Adjusted EBITDA are non-GAAP financial measures. A reconciliation of EBITDA and Adjusted EBITDA to income before taxes, the most directly comparable GAAP measure, is provided in the attached supplemental disclosure.
Full Year 2020 Results
- Consolidated revenues were
$108.4 million for fiscal year 2020, compared to$230.0 million for fiscal year 2019. - The Company delivered 751 railcars in 2020, which included 600 new railcars and 151 rebuilt railcars. This compares to 2,276 railcars in 2019, which included 1,728 new railcars and 548 rebuilt railcars.
- Consolidated operating loss for 2020 was
$80.6 million , which included$18.3 million relating to restructuring and impairment charges and$19.0 million relating to impairment on leased railcars. Consolidated operating loss for 2019 was$75.6 million , which included a net$22.4 million of restructuring and impairment charges,$7.3 million in charges from the loss on sale of railcars previously held in the leasing fleet, and a$6.6 million non-cash gain related to the termination of a postretirement benefit plan. - Net loss attributable to FCA for 2020 was
$84.4 million , or$6.29 per share, compared to net loss attributable to FCA of$75.2 million , or$5.95 per share, in 2019. - Inventories increased to
$38.8 million from$25.1 million as of December 31, 2019, due to higher required inventory levels to support the transition from the Cherokee, Alabama facility to the new manufacturing operation in Castaños, Mexico. - Total cash, cash equivalents, restricted cash equivalents, marketable securities and restricted certificates of deposit (“total cash”) was
$54.2 million as of December 31, 2020, compared to$70.0 million as of December 31, 2019. Total cash included$40 million in proceeds from the new secured term loan that was completed in November 2020.
Fourth Quarter 2020 Conference Call & Webcast Information
The Company will host a conference call and live webcast on Wednesday, March 24, 2021 at 11:00 a.m. (Eastern Daylight Time) to discuss its fourth quarter and year end 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=143797
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. Interested parties may also participate in the call by dialing (877) 407-0789 or (201) 689-8562 and entering the passcode 13717108. Interested parties are asked to dial in approximately 10 to 15 minutes prior to the start time of the call.
An audio replay of the conference call will be available beginning at 2:00 p.m. (Eastern Daylight Time) on Wednesday, March 24, 2021 until 12:00 a.m. (Eastern Daylight Time) on Wednesday, April 7, 2021. To access the replay, please dial (844) 512-2921 or (412) 317-6671. The replay pass code is 13717108. An audio replay of the call will be available on the Company’s website within two days following the earnings call.
About FreightCar America
FreightCar 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: 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 Statements
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: risks relating to the potential financial and operational impacts of the COVID-19 pandemic; 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 CONTACT | Lisa Fortuna or Joe Caminiti |
| RAIL@alpha-ir.com | |
| TELEPHONE | 312-445-2870 |
FreightCar America, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
| (in thousands, except for share and per share data) | |||||||
| December 31, 2020 | December 31, 2019 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash, cash equivalents and restricted cash equivalents | $ | 54,047 | $ | 66,257 | |||
| Restricted certificates of deposit | 182 | 3,769 | |||||
| Accounts receivable, net of allowance for doubtful accounts of | 13,883 | 6,991 | |||||
| Inventories, net | 38,831 | 25,092 | |||||
| Assets held for sale | 10,383 | - | |||||
| Income tax receivable | 27 | 535 | |||||
| Prepaid expenses | 3,625 | 7,035 | |||||
| Total current assets | 120,978 | 109,679 | |||||
| Property, plant and equipment, net | 19,642 | 38,564 | |||||
| Railcars available for lease, net | 20,933 | 38,900 | |||||
| Right of use asset | 18,152 | 56,507 | |||||
| Other long-term assets | 3,037 | 1,552 | |||||
| Total assets | $ | 182,742 | $ | 245,202 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities | |||||||
| Accounts and contractual payables | $ | 18,654 | $ | 11,713 | |||
| Accrued payroll and other employee costs | 2,505 | 1,389 | |||||
| Reserve for workers' compensation | 2,645 | 3,210 | |||||
| Accrued warranty | 5,216 | 8,388 | |||||
| Customer deposits | 4,351 | 5,123 | |||||
| Deferred income state and local incentives, current | 2,219 | 2,219 | |||||
| Lease liability, current | 11,635 | 14,960 | |||||
| Current portion of long-term debt | 17,605 | - | |||||
| Other current liabilities | 6,319 | 2,428 | |||||
| Total current liabilities | 71,149 | 49,430 | |||||
| Long-term debt, net of current portion | 37,668 | 10,200 | |||||
| Warrant liability | 12,730 | - | |||||
| Accrued pension costs | 7,046 | 6,510 | |||||
| Deferred income state and local incentives, long-term | 2,503 | 4,722 | |||||
| Lease liability, long-term | 18,549 | 53,766 | |||||
| Other long-term liabilities | 2,600 | 3,420 | |||||
| Total liabilities | 152,245 | 128,048 | |||||
| Stockholders’ equity | |||||||
| Preferred stock, voting and Series B non-voting, 0 shares issued and outstanding at December 31, 2020 and December 31, 2019) | - | - | |||||
| Common stock, December 31, 2020 and December 31, 2019, respectively | 159 | 127 | |||||
| Additional paid in capital | 82,064 | 83,027 | |||||
| Treasury stock, at cost, 327,577 and 44,855 shares at December 31, 2020 and December 31, 2019, respectively | (1,344 | ) | (989 | ) | |||
| Accumulated other comprehensive loss | (11,763 | ) | (10,780 | ) | |||
| (Accumulated deficit) retained earnings | (38,619 | ) | 45,824 | ||||
| Total FreightCar America stockholders' equity | 30,497 | 117,209 | |||||
| Noncontrolling interest in JV | - | (55 | ) | ||||
| Total stockholders' equity | 30,497 | 117,154 | |||||
| Total liabilities and stockholders’ equity | $ | 182,742 | $ | 245,202 | |||
FreightCar America, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||
| (In thousands, except for share and per share data) | |||||||||||||||||||||||||||
| Revenues | $ | 60,590 | $ | 44,938 | $ | 108,447 | $ | 229,958 | |||||||||||||||||||
| Cost of sales | 55,066 | 53,003 | 121,949 | 244,258 | |||||||||||||||||||||||
| Gross margin (loss) | 5,524 | (8,065 | ) | (13,502 | ) | (14,300 | ) | ||||||||||||||||||||
| Selling, general and administrative expenses | 8,710 | 7,511 | 29,815 | 38,302 | |||||||||||||||||||||||
| Loss on sale of railcars available for lease | - | 2,028 | - | 7,266 | |||||||||||||||||||||||
| Impairment on leased railcars | 18,951 | - | 18,951 | - | |||||||||||||||||||||||
| Gain on termination of postretirement benefit plan | - | (6,637 | ) | - | (6,637 | ) | |||||||||||||||||||||
| Restructuring and impairment charges | (12,925 | ) | (1,980 | ) | 18,325 | 22,371 | |||||||||||||||||||||
| Operating loss | (9,212 | ) | (8,987 | ) | (80,593 | ) | (75,602 | ) | |||||||||||||||||||
| Interest expense | (1,554 | ) | (235 | ) | (2,225 | ) | (609 | ) | |||||||||||||||||||
| Loss on change in fair market value of warrant liability | (3,657 | ) | - | (3,657 | ) | - | |||||||||||||||||||||
| Other income | 58 | 93 | 576 | 858 | |||||||||||||||||||||||
| Loss before income taxes | (14,365 | ) | (9,129 | ) | (85,899 | ) | (75,353 | ) | |||||||||||||||||||
| Income tax (benefit) provision | 277 | 461 | 199 | (115 | ) | ||||||||||||||||||||||
| Net loss | (14,642 | ) | (9,590 | ) | (86,098 | ) | (75,238 | ) | |||||||||||||||||||
| Less Net loss attributable to noncontrolling interest in JV | (259 | ) | (55 | ) | (1,655 | ) | (55 | ) | |||||||||||||||||||
| Net loss attributable to FreightCar America | $ | (14,383 | ) | $ | (9,535 | ) | $ | (84,443 | ) | $ | (75,183 | ) | |||||||||||||||
| Net loss per common share attributable to FreightCar America- basic | $ | (0.87 | ) | $ | (0.75 | ) | $ | (6.29 | ) | $ | (5.95 | ) | |||||||||||||||
| Net loss per common share attributable to FreightCar America- diluted | $ | (0.87 | ) | $ | (0.75 | ) | $ | (6.29 | ) | $ | (5.95 | ) | |||||||||||||||
| Weighted average common shares outstanding - basic | 16,508,200 | 12,359,478 | 13,432,428 | 12,352,142 | |||||||||||||||||||||||
| Weighted average common shares outstanding - diluted | 16,508,200 | 12,359,478 | 13,432,428 | 12,352,142 | |||||||||||||||||||||||
| Dividends declared per common share | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||
FreightCar America, Inc.
Segment Data
(Unaudited)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||
| (In thousands) | (In thousands) | ||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||
| Manufacturing | $ | 58,048 | $ | 42,784 | $ | 98,706 | $ | 219,064 | |||||||||||||||||||||
| Corporate and Other | 2,542 | 2,154 | 9,741 | 10,894 | |||||||||||||||||||||||||
| Consolidated Revenues | $ | 60,590 | $ | 44,938 | $ | 108,447 | $ | 229,958 | |||||||||||||||||||||
| Operating (Loss) Income: | |||||||||||||||||||||||||||||
| Manufacturing | $ | (2,097 | ) | $ | (10,057 | ) | $ | (59,031 | ) | $ | (53,501 | ) | |||||||||||||||||
| Corporate and Other | (7,115 | ) | 1,070 | (21,562 | ) | (22,101 | ) | ||||||||||||||||||||||
| Consolidated Operating (Loss) Income | $ | (9,212 | ) | $ | (8,987 | ) | $ | (80,593 | ) | $ | (75,602 | ) | |||||||||||||||||
FreightCar America, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| (in thousands) | Year Ended December 31, | |||||||
| 2020 | 2019 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (86,098 | ) | $ | (75,238 | ) | ||
| Adjustments to reconcile net loss to net cash flows used in operating activities: | ||||||||
| Restructuring and impairment charges | 18,325 | 22,371 | ||||||
| Depreciation and amortization | 9,202 | 12,438 | ||||||
| Non-cash lease expense on right-of-use assets | 7,063 | 10,485 | ||||||
| Recognition of deferred income from state and local incentives | (2,219 | ) | (2,219 | ) | ||||
| Loss on change in fair market value for warrant liability | 3,657 | - | ||||||
| Loss on sale of railcars available for lease | - | 7,197 | ||||||
| Impairment on leased railcars | 18,951 | - | ||||||
| Gain on termination of postretirement benefit plan | - | (6,637 | ) | |||||
| Deferred income taxes | 136 | 176 | ||||||
| Stock-based compensation recognized | 1,034 | 1,225 | ||||||
| Non-cash interest expense | 1,023 | 225 | ||||||
| Other non-cash items, net | 4,192 | (1,200 | ) | |||||
| Changes in operating assets and liabilities, net of acquisitions: | ||||||||
| Accounts receivable | (6,892 | ) | 11,227 | |||||
| Inventories | (17,942 | ) | 40,649 | |||||
| Other assets | 1,763 | (2,127 | ) | |||||
| Accounts and contractual payables | 3,975 | (23,961 | ) | |||||
| Accrued payroll and employee benefits | (2,027 | ) | (1,368 | ) | ||||
| Income taxes receivable/payable | 991 | 155 | ||||||
| Accrued warranty | (3,172 | ) | (921 | ) | ||||
| Lease liability | (11,553 | ) | (17,602 | ) | ||||
| Other liabilities | 1,040 | 6,201 | ||||||
| Accrued pension costs and accrued postretirement benefits | (354 | ) | (55 | ) | ||||
| Net cash flows used in operating activities | (58,905 | ) | (18,979 | ) | ||||
| Cash flows from investing activities | ||||||||
| Purchase of restricted certificates of deposit | (4,219 | ) | (4,981 | ) | ||||
| Maturity of restricted certificates of deposit | 7,806 | 6,164 | ||||||
| Purchase of securities held to maturity | - | (1,986 | ) | |||||
| Proceeds from maturity of securities | - | 20,025 | ||||||
| Purchase of property, plant and equipment | (9,849 | ) | (5,573 | ) | ||||
| Proceeds from sale of property, plant and equipment and railcars available for lease | 170 | 17,305 | ||||||
| Net cash flows (used in) provided by investing activities | (6,092 | ) | 30,954 | |||||
| Cash flows from financing activities | ||||||||
| Proceeds from issuance of long-term debt | 50,000 | 10,200 | ||||||
| Borrowings on revolving line of credit | 6,874 | - | ||||||
| Repayments on revolving line of credit | (95 | ) | - | |||||
| Cash paid to acquire JV non-controlling interest | (172 | ) | - | |||||
| Employee stock settlement | (9 | ) | (59 | ) | ||||
| Deferred financing costs | (3,811 | ) | (929 | ) | ||||
| Net cash flows provided by financing activities | 52,787 | 9,212 | ||||||
| Net (decrease) increase in cash and cash equivalents | (12,210 | ) | 21,187 | |||||
| Cash, cash equivalents and restricted cash equivalents at beginning of year | 66,257 | 45,070 | ||||||
| Cash, cash equivalents and restricted cash equivalents at end of year | $ | 54,047 | $ | 66,257 | ||||
| Supplemental cash flow information | ||||||||
| Interest paid | $ | 421 | $ | 196 | ||||
| Income tax refunds received, net of payments | $ | 938 | $ | 978 | ||||
| Stock issued for acquisition | $ | 3,237 | $ | - | ||||
FreightCar America, Inc.
Reconciliation of income before taxes to EBITDA(1) and Adjusted EBITDA(2)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||
| 2020 | 2019 | | 2020 | 2019 | ||||||||||||||||||||
| Loss before income taxes | $ | (14,365 | ) | $ | (9,129 | ) | $ | (85,899 | ) | $ | (75,353 | ) | ||||||||||||
| Depreciation and amortization | 1,248 | 2,951 | 9,202 | 12,438 | ||||||||||||||||||||
| Interest expense, net | 1,553 | 235 | 2,225 | 609 | ||||||||||||||||||||
| EBITDA | (11,564 | ) | (5,943 | ) | (74,472 | ) | (62,306 | ) | ||||||||||||||||
| Change in fair value of warrant (a) | 3,657 | - | 3,657 | - | ||||||||||||||||||||
| Restructuring and impairment charges (b) | (12,925 | ) | (1,980 | ) | 18,325 | 22,371 | ||||||||||||||||||
| Impairment of leased railcars (c) | 18,951 | - | 18,951 | - | ||||||||||||||||||||
| Gain on OPEB settlement (d) | - | (6,637 | ) | - | (6,637 | ) | ||||||||||||||||||
| Loss on railcars available for lease (e) | - | 2,028 | - | 7,266 | ||||||||||||||||||||
| Alabama grant amortization (f) | (555 | ) | (555 | ) | (2,219 | ) | (2,219 | ) | ||||||||||||||||
| Transaction costs (g) | 322 | - | 465 | - | ||||||||||||||||||||
| Retention and success bonuses (h) | 2,211 | 144 | 3,130 | 144 | ||||||||||||||||||||
| Plant transition costs (i) | 1,252 | - | 2,239 | - | ||||||||||||||||||||
| Stock based compensation (j) | 455 | 471 | 1,034 | 1,225 | ||||||||||||||||||||
| Other income | (58 | ) | (93 | ) | (576 | ) | (858 | ) | ||||||||||||||||
| Adjusted EBITDA | $ | 1,746 | $ | (12,565 | ) | $ | (29,466 | ) | $ | (41,014 | ) | |||||||||||||
| (1) | EBITDA represents earnings before interest, taxes, depreciation and amortization. We believe EBITDA is useful to investors in evaluating our operating performance compared to that of other companies in our industry. In addition, our management uses EBITDA to evaluate our operating performance. The calculation of EBITDA eliminates the effects of financing, income taxes and the accounting effects of capital spending. These items may vary for different companies for reasons unrelated to the overall performance of the company’s business. EBITDA is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider EBITDA in isolation or as a substitute for net income, cash flows from operating activities or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of EBITDA is not necessarily comparable to that of other similar titled measures reported by other companies. | |||||
| (2) | Adjusted EBITDA represents EBITDA before the following charges: | |||||
| a) | This adjustment removes the non-cash expense associated with the change in fair market value of warrant liability. | |||||
| b) | The Company incurred certain restructuring costs related to severance and other costs related to its shutdown of the Shoals and Roanoke facilities during 2019 and 2020. | |||||
| c) | During the fourth quarter of 2020, the Company recorded a non-cash impairment charge on its leased railcar fleet. | |||||
| d) | During the fourth quarter of 2019, the Company recognized a non-cash gain on the settlement of its OPEB plan. | |||||
| e) | During 2019, the Company recognized losses on its sale of railcars available for loss. | |||||
| f) | The Company amortizes deferred grant income to cost of goods sold that represent a non-cash reduction to its gross margin (loss). | |||||
| g) | The Company incurred certain costs in the fourth quarter of 2020 for nonrecurring professional services associated with the acquisition of its Castaños joint venture. | |||||
| h) | During 2019, the Company implemented retention and success bonus programs for certain employees during its restructuring. | |||||
| i) | During 2020, the Company implemented a program to shift production originally planned for its U.S. plants to its Castaños facility. This adjustment represents non-recurring costs associated with moving inventory and equipment to its Castaños facility. | |||||
| j) | This adjustment removes the non-cash expense associated with the stock-based compensation. | |||||
We believe that Adjusted EBITDA is useful to investors evaluating our operating performance compared to that of other companies in our industry because it eliminates the impact of certain non-cash charges and other special items that affect the comparability of results in past quarters. Adjusted EBITDA is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted EBITDA in isolation or as a substitute for net income, cash flows from operating activities or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Adjusted EBITDA is not necessarily comparable to that of other similarly titled measures reported by other companies.
FAQ
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