FreightCar America, Inc. Reports Second Quarter 2024 Results
FreightCar America, Inc. (NASDAQ: RAIL) reported strong Q2 2024 results, with 66% year-over-year revenue growth to $147.4 million on 1,159 railcar deliveries. The company achieved a gross margin of 12.5% and net income of $8.2 million, or $0.11 per diluted share. Adjusted EBITDA increased to $12.1 million. FreightCar America secured approximately 3,000 new orders, including its first tank car conversion order. The company raised its full-year 2024 guidance, projecting revenue between $560-$600 million and Adjusted EBITDA of $35-$39 million. The improved outlook reflects operational efficiencies and strong order activity, positioning FreightCar America for continued profitable growth.
FreightCar America, Inc. (NASDAQ: RAIL) ha riportato risultati solidi per il secondo trimestre del 2024, con una crescita del fatturato del 66% rispetto all'anno precedente, raggiungendo i 147,4 milioni di dollari grazie a 1.159 consegne di vagoni ferroviari. L'azienda ha registrato un margine lordo del 12,5% e un reddito netto di 8,2 milioni di dollari, corrispondente a 0,11 dollari per azione diluita. L'EBITDA rettificato è aumentato a 12,1 milioni di dollari. FreightCar America ha ottenuto circa 3.000 nuovi ordini, incluso il primo ordine di conversione per vagoni cisterna. L'azienda ha rivisto al rialzo le previsioni per l'intero anno 2024, stimando un fatturato compreso tra 560 e 600 milioni di dollari e un EBITDA rettificato di 35-39 milioni di dollari. Le prospettive migliorate riflettono efficienze operative e una forte attività degli ordini, posizionando FreightCar America per una continua crescita proficua.
FreightCar America, Inc. (NASDAQ: RAIL) informó resultados sólidos para el segundo trimestre de 2024, con un crecimiento de ingresos del 66% en comparación con el año anterior, alcanzando los 147,4 millones de dólares por 1.159 entregas de vagones ferroviarios. La empresa logró un margen bruto del 12,5% y ingresos netos de 8,2 millones de dólares, equivalente a 0,11 dólares por acción diluida. El EBITDA ajustado aumentó a 12,1 millones de dólares. FreightCar America aseguró aproximadamente 3.000 nuevos pedidos, incluyendo su primer pedido de conversión de vagones cisterna. La empresa elevó su guía para todo el año 2024, proyectando ingresos entre 560 y 600 millones de dólares y EBITDA ajustado de 35 a 39 millones de dólares. La mejora de las perspectivas refleja eficiencias operativas y una fuerte actividad de pedidos, posicionando a FreightCar America para un crecimiento rentable continuo.
프레이트카 아메리카 주식회사(FreightCar America, Inc.) (NASDAQ: RAIL)는 2024년 2분기 강력한 실적을 보고했습니다. 이 회사는 전년 대비 66%의 매출 성장을 기록하며 1,159개의 철도차량 전달로 1억 4,740만 달러에 달했습니다. 회사는 총 마진 12.5%와 세후 수익 820만 달러를 달성했으며, 희석 주당 0.11달러의 수익을 기록했습니다. 조정 EBITDA는 1,210만 달러로 증가했습니다. 프레이트카 아메리카는 약 3,000개의 새로운 주문을 확보했으며, 첫 번째 탱크카 변환 주문도 포함되어 있습니다. 이 회사는 2024년 전체 연간 가이던스를 상향 조정했으며, 5억 6천만 달러에서 6억 달러 사이의 매출과 3천5백만 달러에서 3천9백만 달러 사이의 조정 EBITDA를 예상하고 있습니다. 향상된 전망은 운영 효율성 및 강력한 주문 활동을 반영하여 프레이트카 아메리카가 지속적인 수익성 성장의 기틀을 마련하고 있습니다.
FreightCar America, Inc. (NASDAQ: RAIL) a annoncé des résultats solides pour le deuxième trimestre 2024, avec une croissance du chiffre d'affaires de 66 % par rapport à l'année précédente, atteignant 147,4 millions de dollars grâce à 1 159 livraisons de wagons. L'entreprise a atteint une marge brute de 12,5 % et un résultat net de 8,2 millions de dollars, soit 0,11 dollar par action diluée. L'EBITDA ajusté a augmenté pour atteindre 12,1 millions de dollars. FreightCar America a sécurisé environ 3 000 nouvelles commandes, y compris sa première commande de conversion de wagon-citerne. L'entreprise a relevé ses prévisions pour l'ensemble de l'année 2024, projetant un chiffre d'affaires compris entre 560 et 600 millions de dollars et un EBITDA ajusté de 35 à 39 millions de dollars. La perspective améliorée reflète des gains d'efficacité opérationnelle et une forte activité de commandes, positionnant FreightCar America pour une croissance rentable continue.
FreightCar America, Inc. (NASDAQ: RAIL) meldete starke Ergebnisse für das zweite Quartal 2024, mit einem Umsatzwachstum von 66% im Jahresvergleich auf 147,4 Millionen Dollar bei 1.159 gelieferten Güterwagen. Das Unternehmen erzielte eine Bruttomarge von 12,5% und Nettoeinkommen von 8,2 Millionen Dollar, was 0,11 Dollar pro verwässerter Aktie entspricht. Das bereinigte EBITDA stieg auf 12,1 Millionen Dollar. FreightCar America sicherte sich ungefähr 3.000 neue Aufträge, einschließlich des ersten Umwandlungsauftrags für Tankwagen. Das Unternehmen erhöhte die Jahresprognose 2024 und erwartet einen Umsatz von 560 bis 600 Millionen Dollar und ein bereinigtes EBITDA von 35 bis 39 Millionen Dollar. Die verbesserte Perspektive spiegelt operative Effizienzen und eine starke Auftragslage wider, was FreightCar America auf weiteres profitables Wachstum vorbereitet.
- 66% year-over-year revenue growth to $147.4 million in Q2 2024
- Net income of $8.2 million, or $0.11 per diluted share
- Secured approximately 3,000 new railcar orders, including first tank car conversion order
- Raised full-year 2024 guidance for revenue and Adjusted EBITDA
- Delivered 10,000th railcar from Castaños facility, demonstrating production capabilities
- Slight decrease in gross margin from 14.6% in Q2 2023 to 12.5% in Q2 2024
Insights
FreightCar America's Q2 2024 results show impressive 66% year-over-year revenue growth to
The company's outlook is bullish, with raised full-year guidance projecting revenue between
FreightCar America's Q2 performance and outlook reflect a robust recovery in the railcar manufacturing sector. The ~3,000 new orders secured in Q2, including a multi-year contract for over 1,000 tank car conversions, indicate strong market demand across diverse railcar types. This diversification into tank cars is strategically important, as it opens up new market segments and revenue streams.
The company's ability to ramp up production, evidenced by the 10,000th railcar milestone at the Castaños facility, demonstrates its operational capabilities. With all production lines now fully operational, FreightCar America is well-positioned to capitalize on the current market upturn and potentially gain market share. The raised guidance suggests management's confidence in sustaining this growth trajectory through 2024.
FreightCar America's turnaround strategy, centered on its state-of-the-art Castaños facility, is yielding impressive results. The record profitability and significant increase in deliveries showcase the efficiency gains from this new plant. The ability to secure large orders, including the strategic entry into tank car conversions, demonstrates the facility's flexibility and capability to adapt to diverse market demands.
The company's focus on maximizing efficiencies across value streams is important in a competitive manufacturing landscape. With full operational capacity now achieved, FreightCar America can leverage economies of scale to potentially improve margins further. The strong order backlog and increased guidance suggest that the company has successfully positioned itself to capitalize on the current market dynamics in the railcar industry.
Company delivers
Secured ~3,000 orders, including first tank car conversion order
CHICAGO, Aug. 12, 2024 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ: RAIL) (“FreightCar America” or the “Company”), a diversified manufacturer and supplier of railroad freight cars, railcar parts and components, today reported results for the second quarter ended June 30, 2024.
Second Quarter 2024 Highlights
- Revenues of
$147.4 million on 1,159 railcar deliveries, an increase of66% compared to revenues of$88.6 million on 760 railcar deliveries in the second quarter of 2023 - Gross margin of
12.5% with gross profit of$18.4 million , compared to gross margin of14.6% with gross profit of$13.0 million in the second quarter of 2023 - Net Income of
$8.2 million , or$0.11 per diluted share and Adjusted net income of$6.3 million , or$0.05 per diluted share, accounting primarily for a non-cash item associated with a change in fair market value of warrant liability and a cash item associated with a litigation settlement - Adjusted EBITDA of
$12.1 million , compared to Adjusted EBITDA of$8.0 million in the second quarter of 2023 - Delivered its 10,000th railcar manufactured at the Castaños facility
- Received net orders for approximately 3,000 railcars within the quarter, including a multi-year order to convert over 1,000 tanks cars
“We are very pleased to report our strongest performance yet for revenue, gross profit and Adjusted EBITDA since opening our state-of-the-art facility in 2020. Importantly, these results follow the previously reported
Randall continued, “We built a world-class manufacturing campus that is both efficient and flexible. Our customers see this as evidenced by our largest order intake since starting the facility and our recently announced milestone of shipping our 10,000th railcar manufactured at the campus. Furthermore, and consistent with our growth plans, we are pleased to also announce that our order backlog now includes tank cars. Tank cars represent a very important part of the market and are fully aligned with our growth strategy. In summary, we are pleased with the quarter, the year-to-date, and especially with where we see ourselves headed.”
Fiscal Year 2024 Outlook
The Company has updated its outlook for fiscal year 2024 as follows:
| Fiscal 2024 Outlook | Year-over-Year Growth at Midpoint | |
| Revenue | ||
| Adjusted EBITDA | ||
| Railcar Deliveries | 4,300 – 4,700 Railcars |
Mike Riordan, Chief Financial Officer of FreightCar America, commented, “With our facility complete and all production lines fully operational, we are well on track to achieve the operating performance we envisioned. Given this, combined with the significant order activity in the second quarter, we are raising our full year revenue and delivery guidance to between
Second Quarter 2024 Conference Call & Webcast Information
The Company will host a conference call and live webcast on Tuesday, August 13 at 11:00 a.m. (Eastern Time) to discuss its second quarter 2024 financial results. FreightCar America invites shareholders and other interested parties to listen to its financial results conference call via the following live and recorded methods:
Live Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1678919&tp_key=7f0a694b35
Recorded Webcast: A recorded webcast will be available until Tuesday, August 27, 2024, on FreightCar America’s website following the conference call date at: https://investors.freightcaramerica.com/news-events/event-calendar/
Teleconference: Dial-in numbers for the live Conference Call are (877) 407-0789 or (201) 689-8562. Please call in at least 10 minutes prior to the start time of the call. An audio replay may be accessed at (844) 512-2921 or (412) 317-6671; Passcode: 13747591.
About FreightCar America
FreightCar America, headquartered in Chicago, Illinois, is a leading designer, producer and supplier of railroad freight cars, railcar parts and components. We also specialize in railcar repairs, complete railcar rebody services and railcar conversions that repurpose idled rail assets back into revenue service. Since 1901, our customers have trusted us to build quality railcars that are critical to economic growth and instrumental to the North American supply chain. To learn more about FreightCar America, visit www.freightcaramerica.com.
Forward-Looking Statements
This press release contains statements relating to our expected financial performance, financial condition, and/or future business prospects, events and/or 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 risks and uncertainties relate to, among other things, the cyclical nature of our business; adverse economic and market conditions including inflation; material disruption in the movement of rail traffic for deliveries; fluctuating costs of raw materials including steel and aluminum; 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, and other competitive factors. The factors listed above are not exhaustive. New factors emerge from time to time that may cause our business not to develop as we expect, and it is not possible for us to predict all of them. 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.
Non-GAAP Financial Measures
This press release includes measures not derived in accordance with generally accepted accounting principles (“GAAP”), such as EBITDA, Adjusted EBITDA, Adjusted net loss and Adjusted EPS. These non-GAAP measures should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP and may also be inconsistent with similar measures presented by other companies. Reconciliations of these measures to the applicable most closely comparable GAAP measures, and reasons for the Company’s use of these measures, are presented in the attached pages.
| Investor Contact: | RAILIR@Riveron.com |
| FreightCar America, Inc. Consolidated Balance Sheets (In thousands, except for share data) | ||||||||
| June 30, 2024 | December 31, 2023 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash, cash equivalents and restricted cash equivalents | $ | 39,370 | $ | 40,560 | ||||
| Accounts receivable, net | 12,815 | 6,408 | ||||||
| VAT receivable | 2,895 | 2,926 | ||||||
| Inventories, net | 64,479 | 125,022 | ||||||
| Assets held for sale | 629 | — | ||||||
| Related party asset | 1,010 | 638 | ||||||
| Prepaid expenses | 5,915 | 4,867 | ||||||
| Total current assets | 127,113 | 180,421 | ||||||
| Property, plant and equipment, net | 30,489 | 31,258 | ||||||
| Railcars available for lease, net | — | 2,842 | ||||||
| Right of use asset operating lease | 2,620 | 2,826 | ||||||
| Right of use asset finance lease | 44,507 | 40,277 | ||||||
| Other long-term assets | 2,492 | 1,835 | ||||||
| Total assets | $ | 207,221 | $ | 259,459 | ||||
| Liabilities, Mezzanine Equity and Stockholders’ Deficit | ||||||||
| Current liabilities | ||||||||
| Accounts and contractual payables | $ | 45,102 | $ | 84,417 | ||||
| Related party accounts payable | 1,083 | 2,478 | ||||||
| Accrued payroll and other employee costs | 5,255 | 5,738 | ||||||
| Accrued warranty | 1,361 | 1,602 | ||||||
| Customer deposits | 8,709 | — | ||||||
| Current portion of long-term debt | — | 29,415 | ||||||
| Other current liabilities | 6,616 | 13,711 | ||||||
| Total current liabilities | 68,126 | 137,361 | ||||||
| Warrant liability | 52,342 | 36,801 | ||||||
| Accrued pension costs | 1,165 | 1,046 | ||||||
| Lease liability operating lease, long-term | 2,909 | 3,164 | ||||||
| Lease liability finance lease, long-term | 45,747 | 41,273 | ||||||
| Other long-term liabilities | 2,016 | 2,562 | ||||||
| Total liabilities | 172,305 | 222,207 | ||||||
| Commitments and contingencies | ||||||||
| Mezzanine equity | ||||||||
| Series C Preferred stock | 83,745 | 83,458 | ||||||
| Stockholders’ deficit | ||||||||
| Preferred stock | — | — | ||||||
| Common stock | 220 | 210 | ||||||
| Additional paid-in capital | 96,312 | 94,067 | ||||||
| Accumulated other comprehensive income | 1,168 | 2,365 | ||||||
| Accumulated deficit | (146,529 | ) | (142,848 | ) | ||||
| Total stockholders' deficit | (48,829 | ) | (46,206 | ) | ||||
| Total liabilities, mezzanine equity and stockholders’ deficit | $ | 207,221 | $ | 259,459 | ||||
| FreightCar America, Inc. Consolidated Statements of Operations (In thousands, except for share and per share data) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | $ | 147,416 | $ | 88,596 | $ | 308,474 | $ | 169,595 | ||||||||
| Cost of sales | 128,986 | 75,641 | 278,641 | 149,155 | ||||||||||||
| Gross profit | 18,430 | 12,955 | 29,833 | 20,440 | ||||||||||||
| Selling, general and administrative expenses | 8,510 | 5,851 | 16,003 | 12,239 | ||||||||||||
| Gain on sale of railcars available for lease | — | (622 | ) | — | (622 | ) | ||||||||||
| Litigation settlement | (3,214 | ) | — | (3,214 | ) | — | ||||||||||
| Operating income | 13,134 | 7,726 | 17,044 | 8,823 | ||||||||||||
| Interest expense | (1,847 | ) | (4,351 | ) | (4,238 | ) | (10,951 | ) | ||||||||
| Gain (loss) on change in fair market value of Warrant liability | 112 | (6,755 | ) | (15,541 | ) | (6,142 | ) | |||||||||
| Loss on extinguishment of debt | — | (14,880 | ) | — | (14,880 | ) | ||||||||||
| Other expense | (725 | ) | (69 | ) | (739 | ) | (105 | ) | ||||||||
| Income (loss) before income taxes | 10,674 | (18,329 | ) | (3,474 | ) | (23,255 | ) | |||||||||
| Income tax provision (benefit) | 2,497 | 560 | (80 | ) | 671 | |||||||||||
| Net income (loss) | $ | 8,177 | $ | (18,889 | ) | $ | (3,394 | ) | $ | (23,926 | ) | |||||
| Net income (loss) per common share – basic | $ | 0.12 | $ | (0.73 | ) | $ | (0.41 | ) | $ | (0.93 | ) | |||||
| Net income (loss) per common share – diluted | $ | 0.11 | $ | (0.73 | ) | $ | (0.41 | ) | $ | (0.93 | ) | |||||
| Weighted average common shares outstanding – basic | 30,641,193 | 28,113,825 | 30,235,876 | 27,552,297 | ||||||||||||
| Weighted average common shares outstanding – diluted | 32,277,506 | 28,113,825 | 30,235,876 | 27,552,297 | ||||||||||||
| FreightCar America, Inc. Segment Data (In thousands) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Revenues: | |||||||||||||||||
| Manufacturing | $ | 142,528 | $ | 85,724 | $ | 298,256 | $ | 163,323 | |||||||||
| Corporate and Other | 4,888 | 2,872 | 10,218 | 6,272 | |||||||||||||
| Consolidated revenues | $ | 147,416 | $ | 88,596 | $ | 308,474 | $ | 169,595 | |||||||||
| Operating income (loss): | |||||||||||||||||
| Manufacturing | $ | 18,714 | $ | 11,769 | $ | 26,993 | $ | 17,397 | |||||||||
| Corporate and Other | (5,580 | ) | (4,043 | ) | (9,949 | ) | (8,574 | ) | |||||||||
| Consolidated operating income | $ | 13,134 | $ | 7,726 | $ | 17,044 | $ | 8,823 | |||||||||
| FreightCar America, Inc. Consolidated Statements of Cash Flows (In thousands) | ||||||||
| Six Months Ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (3,394 | ) | $ | (23,926 | ) | ||
| Adjustments to reconcile net loss to net cash flows provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 2,810 | 2,105 | ||||||
| Non-cash lease expense on right-of-use assets | 1,436 | 1,307 | ||||||
| Loss on change in fair market value for Warrant liability | 15,541 | 6,142 | ||||||
| Stock-based compensation recognized | 1,526 | (191 | ) | |||||
| Non-cash interest expense | 2,315 | 7,593 | ||||||
| Loss on extinguishment of debt | — | 14,880 | ||||||
| Other non-cash items, net | (480 | ) | (472 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (6,407 | ) | (11,922 | ) | ||||
| Inventories | 63,723 | (25,110 | ) | |||||
| Accounts and contractual payables | (40,066 | ) | (6,050 | ) | ||||
| Income taxes payable, net | (4,949 | ) | (1,456 | ) | ||||
| Lease liability | (1,790 | ) | (1,991 | ) | ||||
| Customer deposits | 8,709 | 19,644 | ||||||
| Other assets and liabilities | (7,099 | ) | (6,129 | ) | ||||
| Net cash flows provided by (used in) operating activities | 31,875 | (25,576 | ) | |||||
| Cash flows from investing activities | ||||||||
| Purchase of property, plant and equipment | (2,269 | ) | (4,954 | ) | ||||
| Proceeds from sale of railcars available for lease, net of selling costs | — | 8,356 | ||||||
| Net cash flows (used in) provided by investing activities | (2,269 | ) | 3,402 | |||||
| Cash flows from financing activities | ||||||||
| Proceeds from issuance of preferred shares, net of issuance costs | — | 13,339 | ||||||
| Borrowings on revolving line of credit | 26,595 | 89,223 | ||||||
| Repayments on revolving line of credit | (56,010 | ) | (105,882 | ) | ||||
| Employee stock settlement | (40 | ) | (106 | ) | ||||
| Payment for stock appreciation rights exercised | — | (6 | ) | |||||
| Financing lease payments | (1,341 | ) | (307 | ) | ||||
| Net cash flows used in financing activities | (30,796 | ) | (3,739 | ) | ||||
| Net decrease in cash and cash equivalents | (1,190 | ) | (25,913 | ) | ||||
| Cash, cash equivalents and restricted cash equivalents at beginning of period | 40,560 | 37,912 | ||||||
| Cash, cash equivalents and restricted cash equivalents at end of period | $ | 39,370 | $ | 11,999 | ||||
| Supplemental cash flow information | ||||||||
| Interest paid | $ | 1,930 | $ | 3,319 | ||||
| Income taxes paid | $ | 4,207 | $ | 1,516 | ||||
| Non-cash transactions | ||||||||
| Change in unpaid construction in process | $ | (210 | ) | $ | 332 | |||
| Accrued PIK interest paid through issuance of PIK Note | $ | — | $ | 3,161 | ||||
| Issuance of preferred shares in exchange of term loan | $ | — | $ | 72,607 | ||||
| Issuance of warrants | $ | — | $ | 3,010 | ||||
| Issuance of equity fee | $ | — | $ | 685 | ||||
| Non-GAAP Financial Measures FreightCar America, Inc. Reconciliation of income (loss) before taxes to EBITDA(1) and Adjusted EBITDA(2) (In thousands) (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Income (Loss) before income taxes | $ | 10,674 | $ | (18,329 | ) | $ | (3,474 | ) | $ | (23,255 | ) | |||||
| Depreciation & Amortization | 1,414 | 1,033 | 2,810 | 2,105 | ||||||||||||
| Interest Expense, net | 1,847 | 4,351 | 4,238 | 10,951 | ||||||||||||
| EBITDA | 13,935 | (12,945 | ) | 3,574 | (10,199 | ) | ||||||||||
| Change in Fair Value of Warrant(a) | (112 | ) | 6,755 | 15,541 | 6,142 | |||||||||||
| Loss on Debt Extinguishment(b) | - | 14,880 | - | 14,880 | ||||||||||||
| Litigation Settlement(c) | (3,214 | ) | - | (3,214 | ) | - | ||||||||||
| Gain on Sale of Railcars Available for Lease(d) | - | (622 | ) | - | (622 | ) | ||||||||||
| Stock Based Compensation | 766 | (100 | ) | 1,526 | (191 | ) | ||||||||||
| Other, net | 725 | 69 | 739 | 105 | ||||||||||||
| Adjusted EBITDA | $ | 12,100 | $ | 8,037 | $ | 18,166 | $ | 10,115 | ||||||||
| (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 overall business performance. 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 similarly titled measures reported by other companies. |
| (2) | Adjusted EBITDA represents EBITDA before the following charges: |
| (a) This adjustment removes the non-cash (income) expense associated with the change in fair market value of the Company’s Warrant liability. | |
| (b) During the second quarter of 2023, the Company recorded a non-cash loss on debt extinguishment of its term loan. | |
| (c) During the second quarter of 2024, the Company recorded a litigation settlement related to a dispute with a former lessee of our railcars. | |
| (d) During the second quarter of 2023, the Company recorded a gain on sale of railcars available for lease related to its leased railcar fleet. |
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.
| FreightCar America, Inc. Reconciliation of Net income (loss) and Adjusted Net income (loss)(1) (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income (loss) | $ | 8,177 | $ | (18,889 | ) | $ | (3,394 | ) | $ | (23,926 | ) | |||||
| Change in Fair Value of Warrant(a) | (112 | ) | 6,755 | 15,541 | 6,142 | |||||||||||
| Loss on Debt Extinguishment(b) | - | 14,880 | - | 14,880 | ||||||||||||
| Litigation Settlement(c) | (3,214 | ) | - | (3,214 | ) | - | ||||||||||
| Gain on Sale of Railcars Available for Lease(d) | - | (622 | ) | - | (622 | ) | ||||||||||
| Stock Based Compensation | 766 | (100 | ) | 1,526 | (191 | ) | ||||||||||
| Other, net | 725 | 69 | 739 | 105 | ||||||||||||
| Total non-GAAP adjustments | (1,835 | ) | 20,982 | 14,592 | 20,314 | |||||||||||
| Income tax impact on non-GAAP adjustments(e) | - | - | - | - | ||||||||||||
| Adjusted net income (loss) | $ | 6,342 | $ | 2,093 | $ | 11,198 | $ | (3,612 | ) | |||||||
| (1) | Adjusted net income (loss) represents net loss before the following charges: |
| a) This adjustment removes the non-cash (income) expense associated with the change in fair market value of the Company’s warrant liability. | |
| b) During the second quarter of 2023, the Company recorded a non-cash loss on debt extinguishment of its term loan. | |
| c) During the second quarter of 2024, the Company recorded a litigation settlement related to a dispute with a former lessee of our railcars. | |
| d) During the second quarter of 2023, the Company recorded a gain on sale of railcars available for lease related to its leased railcar fleet. | |
| e) Income tax impact on non-GAAP adjustments per share represents the tax impact of adjustments specific to Mexico using the effective tax rate. Given the Company’s US based NOLs and Valuation Allowances, all US based adjustments above are not tax affected. |
We believe that Adjusted net income (loss) 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 net income (loss) is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted net income (loss) 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 net income (loss) is not necessarily comparable to that of other similarly titled measures reported by other companies.
| FreightCar America, Inc. Reconciliation of EPS and Adjusted EPS(1) (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Diluted EPS | $ | 0.11 | $ | (0.73 | ) | $ | (0.41 | ) | $ | (0.93 | ) | |||||
| Change in Fair Value of Warrant(a) | $ | - | $ | 0.24 | $ | 0.51 | $ | 0.22 | ||||||||
| Loss on Debt Extinguishment(b) | - | 0.54 | - | 0.54 | ||||||||||||
| Litigation Settlement(c) | (0.10 | ) | - | (0.11 | ) | - | ||||||||||
| Gain on Sale of Railcars Available for Lease(d) | - | (0.02 | ) | - | (0.02 | ) | ||||||||||
| Stock Based Compensation | 0.02 | (0.01 | ) | 0.05 | (0.01 | ) | ||||||||||
| Other, net | 0.02 | - | 0.02 | - | ||||||||||||
| Total non-GAAP adjustments pre-tax per-share | (0.06 | ) | 0.75 | 0.47 | 0.73 | |||||||||||
| Income tax impact on non-GAAP adjustments per share(e) | - | - | - | - | ||||||||||||
| Adjusted Diluted EPS | $ | 0.05 | $ | 0.02 | $ | 0.06 | $ | (0.20 | ) | |||||||
| (1) | Adjusted EPS represents basic and diluted EPS before the following charges: |
| a) This adjustment removes the non-cash (income) expense associated with the change in fair market value of the Company’s warrant liability. | |
| b) During the second quarter of 2023, the Company recorded a non-cash loss on debt extinguishment of its term loan. | |
| c) During the second quarter of 2024, the Company recorded a litigation settlement related to a dispute with a former lessee of our railcars. | |
| d) During the second quarter of 2023, the Company recorded a gain on sale of railcars available for lease related to its leased railcar fleet. | |
| e) Income tax impact on non-GAAP adjustments per share represents the tax impact of adjustments specific to Mexico using the effective tax rate. Given the Company’s US based NOLs and Valuation Allowances, all US based adjustments above are not tax affected. |
We believe that Adjusted EPS 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 EPS is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted EPS 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 EPS is not necessarily comparable to that of other similarly titled measures reported by other companies.
FAQ
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