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RAIL

Freightcar America Inc. Nasdaq Global Select
$5.3
Open: $4.6 High: $5.8 Low: $4.6 Close: $4.98
Range: 2021-04-19 - 2021-04-20
Volume: 6,996,854
Market: Extended-hours
Powered by Finage Stock APIDelayed data
RAIL
Freightcar America Inc. Two North Riverside Plaza Chicago IL, 60606 http://www.freightcaramerica.com
FreightCar America Inc is a manufacturer of aluminum-bodied railcars in North America. The Company specializes in production of coal cars.
  • CEO: James R. Meyer
  • Employees: 985
  • Sector: Industrials
  • Industry: Transportation & Logistics
RAIL News
Latest news about the RAIL
  • FreightCar America's (RAIL) Shares March Higher, Can It Continue?

    As of late, it has definitely been a great time to be an investor in FreightCar America, Inc. (RAIL).

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  • If You Had Bought FreightCar America (NASDAQ:RAIL) Shares A Year Ago You'd Have Earned 375% Returns

    Active investing isn't easy, but for those that do it, the aim is to find the best companies to buy, and to profit...

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  • ROCE Insights For FreightCar America

    FreightCar America (NASDAQ:RAIL) reported Q4 sales of $60.59 million. Earnings fell to a loss of $9.21 million, resulting in a 77.72% decrease from last quarter. FreightCar America collected $25.20 million in revenue during Q3, but reported earnings showed a $41.34 million loss. What Is ROCE? Changes in earnings and sales indicate shifts in FreightCar America's Return on Capital Employed, a measure of yearly pre-tax profit relative to capital employed by a business. Generally, a higher ROCE suggests successful growth of a company and is a sign of higher earnings per share in the future. In Q4, FreightCar America posted an ROCE of -0.21%. View more earnings on RAIL It is important to keep in mind ROCE evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but several factors could affect earnings and sales in the near future. ROCE is an important metric for the comparison of similar companies. A relatively high ROCE shows FreightCar America is potentially operating at a higher level of efficiency than other companies in its industry. If the company is generating high profits with its current level of capital, some of that money can be reinvested in more capital which will generally lead to higher returns and earnings per share growth. In FreightCar America's case, the ROCE ratio shows the amount of assets may not be helping the company achieve higher returns. Investors may take this into account before making any long-term financial decisions. Q4 Earnings Insight FreightCar America reported Q4 earnings per share at $-0.07/share, which beat analyst predictions of $-0.67/share. See more from BenzingaClick here for options trades from BenzingaEarnings Scheduled For March 24, 2021Earnings Outlook for FreightCar America© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • FreightCar America, Inc. Reports Fourth Quarter and Full Year 2020 Results

    Fourth quarter revenues up 35% year-over-year and 140% sequentially 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, up 35% year-over-year, on deliveries of 477 railcarsAchieved revised 2020 delivery guidance of 750 railcars, despite transitioning manufacturing from Shoals to CastañosFourth 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-cashAdjusted EBITDA was $1.7 million, which excludes the previously mentioned adjustmentsCompleted the early termination of the lease and exited the Cherokee, Alabama (“Shoals”) manufacturing facility on February 28, 2021, as plannedSuccessfully 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 productionYear-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 CONTACTLisa Fortuna or Joe CaminitiE-MAILRAIL@alpha-ir.comTELEPHONE312-445-2870 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 $1,235 and $91, respectively 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, $0.01 par value, 2,500,000 shares authorized (100,000 shares each designated as Series A voting and Series B non-voting, 0 shares issued and outstanding at December 31, 2020 and December 31, 2019) - - Common stock, $0.01 par value, 50,000,000 shares authorized, 15,861,406 and 12,731,678 shares issued at 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 EndedDecember 31, Twelve Months EndedDecember 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 EndedDecember 31, Twelve Months EndedDecember 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.

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  • Earnings Outlook for FreightCar America

    FreightCar America (NASDAQ:RAIL) announces its next round of earnings this Wednesday, March 24. Here is Benzinga's look at FreightCar America's Q4 earnings report. What Are Earnings, Net Income, And Earnings Per Share? Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS. Earnings And Revenue Analysts covering FreightCar America have modeled for quarterly EPS loss of $0.67 on revenue of $51.20 million. FreightCar America reported a loss of $0.75 when it published results during the same quarter last year. Sales in that period totaled $44.94 million. What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter? Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values. View more earnings on RAIL If the company were to post earnings in line with the consensus estimate when it reports Wednesday, EPS would be up 10.67%. Revenue would be up 13.93% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past: Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020 EPS Estimate -0.75 -0.79 -0.81 -0.59 EPS Actual -0.82 -0.97 -1.29 -0.75 Revenue Estimate 39.85 M 29.80 M 28.50 M 45.40 M Revenue Actual 25.20 M 17.46 M 5.20 M 44.94 M Stock Performance Over the last 52-week period, shares are up 364.78%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release. Do not be surprised to see the stock move on comments made during its conference call. FreightCar America is scheduled to hold the call at 11:00:00 ET and can be accessed here. See more from BenzingaClick here for options trades from Benzinga12 Industrials Stocks Moving In Thursday's After-Market Session© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • FreightCar America, Inc. to Host Earnings Call

    NEW YORK, NY / ACCESSWIRE / March 24, 2021 / FreightCar America, Inc. (NASDAQ:RAIL) will be discussing their earnings results in their 2020 Fourth Quarter Earnings call to be held on March 24, 2021 at 11:00 AM Eastern Time.

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  • FreightCar America, Inc. to Release Fourth Quarter and Full Year 2020 Results on March 24, 2021

    CHICAGO, March 10, 2021 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (Nasdaq: RAIL) will host a conference call and live webcast on Wednesday, March 24, 2021 at 11:00 a.m. (Eastern Daylight Time) to discuss the Company’s fourth quarter and full year 2020 financial results. The Company’s earnings release for the fourth quarter and full year 2020 will be issued before the market opens on Wednesday, March 24, 2021 and will be available on the Investor Relations page of the Company’s website at www.freightcaramerica.com. Investors, analysts, and members of the media interested in listening to the live presentation are encouraged to join a webcast of the call which can be accessed 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) 689-8563 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 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. INVESTOR/MEDIA CONTACTJoseph Caminiti or Lisa FortunaTELEPHONE 312-445-2870

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  • FreightCar America, Inc. Appoints Terence Rogers as Chief Financial Officer

    New Financial Leader Brings Nearly 40 Years of Key Experience to the Company as it Completes its Repositioning and Looks Towards the FutureCHICAGO, Feb. 17, 2021 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ: RAIL) today announced that its Board of Directors has appointed Terence R. (Terry) Rogers as Vice President, Chief Financial Officer & Treasurer, effective February 15, 2021. Mr. Rogers has been serving as Interim Chief Financial Officer since January 2021, leading all the finance activities of the Company including business planning, budgeting, forecasting, treasury and information technology. Jim Meyer, President and Chief Executive Officer, commented, “We are thrilled to have a person of Terry’s caliber join the permanent team. He is an extremely experienced financial leader and brings invaluable experience as we complete the remaining steps of our strategic repositions and look to pivot to long-term growth. We are on track to complete the transition of our production to Mexico in early 2021 and remain focused on achieving our goals to become the highest quality, lowest cost producer in the industry and build a manufacturing platform well positioned for the future.” Terry Rogers, Chief Financial Officer of FreightCar America, added, “I am excited to be joining FreightCar America at such an important time in the Company’s history. Jim and the team have executed a comprehensive transformation of the business, which has significantly enhanced our competitive position. I look forward to the future of the Company, and believe we have the right strategy to complete the repositioning and return to long-term growth.” Mr. Rogers has nearly 40 years of experience in finance, accounting and operations with a proven track record in strategic planning, corporate restructuring, accounting and investor relations. Prior to joining FreightCar America, Mr. Rogers was Executive Vice President and Chief Financial Officer at Roadrunner Transportation Systems from 2017 to 2019. Prior to joining Roadrunner, Mr. Rogers served as Executive Vice President and Chief Financial Officer of the Heico Companies from 2012 to 2017. Mr. Rogers also held various executive management positions at Ryerson, including Executive Vice President and Chief Financial Officer, over a 17-year period. Mr. Rogers holds a Master’s Degree in Business Administration from the University of Michigan and a Bachelor’s Degree in Accounting from Illinois State University. 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: 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 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 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. INVESTOR & MEDIA CONTACTJoe Caminiti or Lisa FortunaTELEPHONE312-445-2870

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  • Is FreightCar America, Inc. (RAIL) A Good Stock To Buy?

    We know that hedge funds generate strong, risk-adjusted returns over the long run, therefore imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, smart money investors have to conduct complex analyses, spend many resources and use tools that are not always […]

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  • The President of FreightCar America, Inc. (NASDAQ:RAIL), James Meyer, Just Bought 15% More Shares

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  • 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

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  • 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.

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  • 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

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  • FreightCar America, Inc. Announces Date For Third Quarter 2020 Earnings Conference Call

    CHICAGO, Oct. 28, 2020 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (Nasdaq: RAIL) will host a conference call and live webcast on Tuesday November 10, 2020 at 11:00 a.m. (Eastern Standard Time) to discuss the Company’s third quarter 2020 financial results. The Company’s earnings release for the third quarter 2020 will be issued after the market closes on Monday, November 9, 2020 and will be available on the Investor Relations page of the Company’s website at www.freightcaramerica.com. To participate in the conference call, please dial (877) 407-0789 or (201) 689-8562, Conference ID 13712647. Interested parties are asked to dial in approximately 10 to 15 minutes prior to the start time of the call. The live audio-only webcast can be accessed at:Event URL: http://public.viavid.com/index.php?id=142262Please 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 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 Pin Number is 13712647. 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 a wide range of railroad freight cars, supplies railcar parts and leases freight cars through its FreightCar America Leasing Company subsidiaries. FreightCar America designs and builds high-quality railcars, including bulk commodity cars, covered hopper cars, intermodal and non-intermodal flat cars, mill gondola cars, coil steel cars, boxcars and coal cars. It is headquartered in Chicago, Illinois and has facilities in the following locations: Cherokee, Alabama; Johnstown, Pennsylvania; and Castaños, Mexico. More information about FreightCar America is available on its website at www.freightcaramerica.com.MEDIA CONTACTJoe Caminiti or Elizabeth Steckel TELEPHONE312-445-2870

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  • FreightCar America, Inc. Announces Final Repositioning Steps

    Acquires partner’s 50% interest in the Castaños, Mexico joint venture Announces recapitalization plan to bolster balance sheet, expand Castaños, Mexico manufacturing operation, and support future growthCHICAGO, Oct. 19, 2020 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ: RAIL) (“FreightCar America” or the “Company”) announced the final strategic steps to reposition its business for long-term growth.Highlights: * Completed transaction and now owns 100% of its new Castaños, Mexico manufacturing operation (“Castaños”), where all future railcar manufacturing is expected to be based by February 2021 * Enters into new $40 million secured term loan agreement with a global investment management firm (“Lender”), with funding subject to the satisfaction of certain conditions, to strengthen balance sheet and drive its growth strategy * Will welcome two new members to its board of directors including Jesus Gil, General Manager of the Castaños joint venture and an owner of Fabricaciones y Servicios de Mexico SA. de C.V. (“Fasemex”), who will also become the Company’s new Vice President of Operations, and a future representative from the Lender following the closing of the new capital plan * Announces plan to host a virtual special meeting of stockholders necessary to complete the term loan funding by late November * Will host a special call to review its go forward strategy at 8:30 a.m. (Eastern Daylight Time) tomorrow, October 20, 2020 “Today is an exciting day and new beginning for FreightCar America as we announce the last steps in our plan to reposition the business for long-term growth,” said Jim Meyer, President and Chief Executive Officer. “We exit a prolonged period when our business was hampered by high costs, sustained losses and a generally challenged competitive position. We now enter a new chapter, where our business will be supported by a single new production facility designed specific to our needs, a highly experienced and cost competitive workforce, and a significantly enhanced competitive profile that includes a $25 million reduction in annual fixed costs achieved through the closures of our two facilities in Cherokee, Alabama (“Shoals”) and Roanoke, Virginia.”Meyer added, “To support this new competitive positioning, we are announcing two critical transactions.   The first involved the completion of the previously announced plan to acquire the remaining portion of the Castaños joint venture and I’m happy to report that Fasemex and the Gil Family have sold us their 50% ownership in exchange for roughly 2.26 million shares of our common stock. Given their successful history in the industry, we are excited to welcome the Gils to our team, to our board and as stockholders of our company. Next, we need to bolster our balance sheet and build capital to support the next phase of our expansion plans at the Castaños facility. Thus, we are announcing a new $40 million secured term loan with a well-respected global investment management firm. As a part of this transaction, our new term loan lender will receive, subject to our stockholders’ approval, a warrant to purchase up to 23% of the Company’s outstanding common stock, after giving effect to such issuance, at a nominal price. Additionally, one of their representatives will join our board following stockholder approval of the warrant.”Meyer concluded, “We have announced a series of aggressive and proactive actions over the last few weeks to significantly change the competitive position of FreightCar America and emerge from the industry downturn and COVID-pandemic as a truly unique player in the railcar industry. While we had made significant progress in improving our business profile over the last few years, our financial and competitive path forward was uncertain. Today’s announcements mark the successful completion of many months of hard work and planning by our team, and most importantly, the repositioning of the business to thrive in the future. Our goal remains to become the lowest cost, highest quality producer of railcars in our industry. We will be resoundingly more competitive in 2021 and beyond, and we will be in one of the best positions that we’ve ever been in to grow and add value for all of our stakeholders following the completion of these last steps. I look forward to working with our stockholders to finalize this repositioning work, which will shift our investment thesis and long-term opportunity moving forward.”Castaños, Mexico Joint Venture Interest Acquisition Completed On October 16, 2020, FreightCar America acquired Fasemex’s 50% ownership in the Castaños, Mexico joint venture in exchange for 2,257,234 shares of FreightCar America’s common stock. FreightCar America now owns 100% of its new Castaños, Mexico operation, where all of FreightCar America’s railcar manufacturing is expected to be based by February 2021. FreightCar America and the Gil Family have previously invested over $35 million in Castaños, which is the newest purpose-built railcar manufacturing facility in North America. The plant currently has two production lines and additional lines will be added as industry demand ramps up.The Company continues to forecast a $25 million reduction in fixed costs as a result of reduced rent and other fixed overhead that it expects to achieve at Castaños compared to its manufacturing footprint at the start of this year.   In addition, the Company expects to have an improved labor and variable cost position with this facility. Lastly, FreightCar America has already hired a highly skilled, competitive workforce with substantial industry expertise at the plant.Jesus Gil, general manager of the new Castaños railcar manufacturing operation and an owner of Fasemex, will be retained as Vice President of Operations of the Company and will be responsible for overseeing operations of the Mexico facility. Mr. Gil will also join FreightCar America’s board of directors later this month. Mr. Gil has 30 years of experience in manufacturing, primarily in the railcar industry. He was previously part of the successful greenfield startups and managed operations for two of FreightCar America’s primary competitors. He was also the former Chief Executive Officer of Grupo Industrial Monclova, a leading industrial consortium that specializes in manufacturing for the industrial, energy, and mining industries.  Recapitalization Plan to Support Future Growth FreightCar America has entered a new $40 million secured term loan credit agreement with a global investment management firm, with funding subject to the satisfaction of certain conditions. Following the closing of the transaction, the Company expects to have a stronger balance sheet and ample liquidity to drive its growth strategy and complete the buildout of its Castaños production line expansion. The new credit agreement includes the issuance of a warrant to the Lender to purchase up to 23% of the Company’s outstanding common stock at a future date (after giving effect to such issuance), at a strike price equal to $0.01 per share. The term loan will be secured by a first lien on all assets other than working capital assets and will have a term ending five years following funding of the loan. Funding of the term loan is subject to the approval by FreightCar America’s stockholders of the issuance of the common stock issuable upon the Lender’s future exercise of the warrant. The secured loan agreement and the issuance of the warrant were unanimously approved by the Company’s board of directors.  FreightCar America will host a virtual special meeting of stockholders to consider and vote upon a proposal to approve the issuance of up to 23% of its issued and outstanding common stock issuable upon the exercise of the warrant in accordance with Nasdaq Listing Rules 5635(b) and 5635(d). That meeting will be held in a virtual format only, via live webcast on the Internet, by late November 2020. Following stockholder approval, a representative of the Lender will be added to FreightCar America’s board of directors.Special Call & Webcast InformationThe Company will host a conference call and live webcast on Tuesday, October 20, 2020 at 8:30 a.m. (Eastern Daylight Time) to discuss today’s announcements. 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=142096Interested parties may also participate in the call by dialing 877-407-0789 or 201-689-8562 and should use conference code 13712254. 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 11:30 a.m. (Eastern Daylight Time) on Tuesday, October 20, 2020 until 11:59 p.m. (Eastern Daylight Time) on Tuesday, November 3, 2020. To access the replay, please dial 844-512-2921 or 412-317-6671. The replay pass code is 13712254. 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. 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 risk that our stockholders may not approve the issuance of the warrant or that the term loan may not be funded; 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 in the near future. In connection with the special meeting, the Company will file a preliminary proxy statement with the United States Securities and Exchange Commission (the “SEC”) and will file a definitive proxy statement with the date and time of such meeting as soon as possible thereafter. BEFORE MAKING ANY VOTING OR INVESTMENT DECISIONS, INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PRELIMINARY PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE SPECIAL MEETING. The definitive proxy statement will be 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 will be made available free of charge at the SEC’s website, www.sec.gov.Investor & Media ContactAlpha IR Group Joe Caminiti or Elizabeth Steckel 312-445-2870 RAIL@alpha-ir.com

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  • FreightCar America, Inc. Completes Key Steps in Previously Announced Manufacturing Repositioning

    Company continues to reposition the business with the objective to become the lowest cost, highest quality producer of railcars in the industryCHICAGO, Oct. 12, 2020 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ: RAIL) (“FreightCar America” or the “Company”) announced today that it has made significant progress in its manufacturing repositioning and business transformation strategy. Highlights: * Successfully finalized early termination of the lease at Cherokee, Alabama (“Shoals”) manufacturing facility effective February 28, 2021 * Completed Association of American Railroads (“AAR”) certification audits for new joint venture facility in Castaños, Mexico (“Castaños”) and now awaiting approval to start shipping railcars * Castaños completed its first car in early September and continues to ready itself for full production in 2021 * Obtained new asset-backed credit facility to facilitate the business and repositioning process going forward“We are pleased to announce substantial progress in our recently announced plan to reposition FreightCar America to be a much stronger player in the railcar industry,” said Jim Meyer, President and Chief Executive Officer. “First, we have reached an agreement with the Shoals facility owner and landlord, the Retirement Systems of Alabama (“RSA”), to exit our lease as of the end of February 2021. We will exchange infrastructure-related equipment at the facility in consideration for the early termination of the lease. This agreement is consistent with our previous announcement and go forward planning. We will retain all tooling and other assets specific to manufacturing railcars, all of which will transfer to Castaños. Our agreement with the RSA solves the fundamental cost and capacity mismatch with Shoals and keeps us on track to reduce our fixed costs by approximately $20 million per year and to reduce our production breakeven to less than 2,000 cars per year when Castaños becomes fully operational.”Meyer added, “We are also providing updates on two other important steps related to our manufacturing repositioning. First, we secured new asset-based financing from Siena Lending Group. This financing replaced our former ABL facility with BMO Harris Bank N.A, and now provides us greater flexibility and the ability to complete the acquisition of the remaining 50% of our JV partnership. Second, the AAR audits were recently completed in Castaños and we are now awaiting final certification and approval to start shipping finished product.”  Meyer continued, “We are taking aggressive and proactive actions to reposition the business for enhanced long-term success. Castaños is not only the newest purpose-built railcar manufacturing facility in North America, but also has the flexibility to scale as market demand returns. When combined with our new and very experienced workforce at building railcars, we expect to achieve our goal of becoming the lowest cost, highest quality producer of railcars in the industry. We have more hard work to do before we realize these goals, but believe strongly in the strategy and the ability of our team to execute it.”Shoals Facility Lease TerminationFreightCar America completed an amendment to its Shoals manufacturing facility lease with the RSA. The amendment accelerates the expiration date of the lease from December 31, 2026 to February 28, 2021, which aligns with FreightCar America’s decision to close the Shoals facility by the end of the first quarter of 2021. In addition, the RSA has agreed to waive the base rent payable under the original lease for the months of October 2020 through February 2021. As consideration for the early termination and rent waiver, the Company agreed to sell and transfer certain basic infrastructure at the facility to the RSA. Under the amendment, FreightCar America has the ability to store railcars and other rolling stock from the end of the term through June 30, 2021 for no additional rent or other costs.Meyer concluded, “Lastly, I’d like to recognize and commend the continuing strong efforts by our Shoals manufacturing team for their ongoing hard work and professionalism.”Castaños, Mexico Certification ProcessIn September, AAR representatives visited Castaños as a part of the certification process for the new plant. The AAR is the world’s leading railroad policy, research, standard-setting and technology organization that focuses on safety and productivity.   The AAR representatives conducted two customary audits and, subject to the final documentation from the AAR, the Company expects to begin shipping railcars by the end of the year.New Asset-Based Credit FacilityFreightCar America recently obtained a new asset-backed credit facility (the “Credit Facility”) with a maximum aggregate principal amount of up to $20 million, subject to a borrowing base, with Siena Lending Group as lender. The Credit Facility was used to finance certain letter of credit obligations and will provide improved working capital flexibility for the Company. This new facility replaced the Company’s prior $50 million revolving credit facility with BMO Harris Bank N.A., which substantially limited the company’s ability to invest in its expanding Mexico operations. The agreement has a term of three years and carries an interest rate equivalent to the Base Rate plus 3.0% per annum, but not less than 6.25%.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.INVESTOR & MEDIA CONTACTJoe Caminiti or Elizabeth Steckel TELEPHONE312-445-2870

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  • FreightCar America, Inc. Announces Additional Steps in Manufacturing and Operational Realignment

    Company in discussions to acquire its partner’s 50% interest in the Castaños, Mexico joint venture Production expected to be fully consolidated at new Castaños, Mexico plant starting in January CHICAGO, Sept. 10, 2020 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ: RAIL) (“FreightCar America” or the “Company”) today announced additional steps in its manufacturing and operational realignment as it plans to acquire its partner’s 50% interest in the joint venture in Castaños, Mexico and consolidate all of its production there by January. As part of this decision, the Company has started the process to permanently close its manufacturing facility in Cherokee, Alabama (“Shoals”).Highlights: * Aggressive footprint consolidation will establish a much more flexible business structure, allowing the Company to realign costs to the near-term demand environment. * Company has initiated the process to permanently close the Shoals manufacturing facility with production to cease by approximately year-end. * The state-of-the-art Castaños, Mexico facility is scalable over time and will be able to accommodate significantly greater volume when industry conditions improve. * When completed, the Company expects to save more than $20 million in annual fixed costs, and further lower its production breakeven to less than 2,000 cars per annum. * The Company has signed a letter of intent and is engaged in negotiations to acquire the remaining 50% ownership in the Castaños, Mexico joint venture, and intends to complete the transaction later this year.Shoals Facility Closure The closure of the Shoals manufacturing facility will further align costs and manufacturing capacity with the current realities of depressed railcar demand, which have been magnified by the ongoing COVID-19 pandemic. Additionally, the closure of Shoals will accelerate the Company’s goal to achieve profitability on significantly lower railcar volumes. The Company will continue to produce railcars at Shoals through approximately the end of 2020, with the full closure expected by the end of the first quarter of 2021.Jim Meyer, President and Chief Executive Officer of FreightCar America said, “Today we have announced the difficult, but necessary, decision to exit our Shoals manufacturing facility by early 2021. As part of our ‘Back-to-Basics’ multi-year plan, we have taken significant cost out of our business, while making significant investments in our products, people and processes.  The efforts of our Shoals’ team helped us to reduce our breakeven production levels by roughly one-third since the start of the plan.  However, the ongoing impact of the industry downturn has been further intensified by the COVID-19 pandemic and required an additional and significant response to both protect our franchise and reposition the business for immediate success post-downturn.”Castaños, Mexico Joint VentureIn September 2019, the Company announced the formation of a 50-50 joint venture with Fabricaciones y Servicios de México, S.A. de C.V. (“Fasemex”), to manufacture new railcars and convert existing railcars at a new facility in Castaños, Mexico. This facility recently started production of its first order and is working to achieve AAR certification this fall. A second production line is expected to be operational by year-end and additional lines will be added as market conditions improve. Each production line has capacity of approximately 1,000 railcars per year. The Company is now engaged in negotiations to acquire Fasemex’s interest in the joint venture under a letter of intent and expects to complete the acquisition later this year.Meyer commented, “The Castaños plant is the newest purpose-built railcar manufacturing facility in Mexico and we have the ability to increase its scale as market demand rebounds. It is roughly one-fifth the size of Shoals and will lower our fixed costs by approximately $20 million per year. The consolidation will significantly reduce our breakeven production levels, from 6,000 railcars before our ‘Back-to-Basics’ plan was started, to under 2,000 railcars per year once the new plant is fully operational. To date, we have hired a very experienced workforce at Castaños, have started production on the first line and are preparing for certification.”Balance Sheet, Capital Considerations & Liquidity * FreightCar America maintains a strong balance sheet, with cash and cash equivalents including restricted cash and certificates of deposit of $52.4 million as of the end of the second fiscal quarter. * As a result of the footprint consolidation, the Company expects to incur pre-tax cash charges of approximately $6.0-to-$8.0 million by the end of the first quarter of 2021, consisting of employee-related costs and other cash shutdown costs. * FreightCar America is negotiating its exit with the Shoals facility owner and landlord, the Retirement Systems of Alabama (RSA). * The Company owns significant and valuable assets at the Shoals facility, some of which it expects to sell. * The Company expects annual fixed cost savings of approximately $20 million on a go-forward basis when the plan is complete, consisting of reduced rent, taxes, and other fixed overhead.Meyer concluded, “Today’s news is both a sad end and a new beginning for FreightCar America. We owe our Shoals’ team a great deal of gratitude and thank them for everything they have done for the Company. We will provide transition assistance for them as part of the planned shutdown. As we look forward, we do so with an eye to become the lowest cost and highest quality producer in our industry. We will operate from a new position of strength and our portfolio will not only be more competitive, it will be broader in scope and capability given our improved cost structure. We remain committed to completing the work against the 750-to-1,000 delivery goal we set for the second half of 2020.  Our customers have been very consistent on the importance of the Company as an alternative supplier, and we believe they will be highly supportive of these decisions as today’s announcement makes us a much stronger partner moving forward.  Lastly, we ended the second quarter with over $52 million in cash and cash equivalents and will continue to prioritize our balance sheet, while we invest prudently in our future through today’s strategic announcement.”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; risks to satisfactory execution of the Castaños consolidation plan including unexpected costs, charges or delays in the execution of the plan, 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 Contact        Joe Caminiti or Elizabeth Steckel Alpha IR Group 312-445-2870 RAIL@alpha-ir.com

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  • FreightCar America Sees 'Pockets Of Opportunity'

    FreightCar America, Inc. (NYSE: RAIL) anticipates improving market conditions in the second half of 2020 as it seeks to crawl out from under the pandemic-induced headwinds of 2020's first six months."I think you're going to see an increase of some activity...across the industry" in the next several quarters, said FreightCar America President and CEO Jim Meyer during the company's second-quarter earnings call on August 11. "We anticipate converting a number of these inquiries into orders without getting into specifics."Meyer continued, "You're going to see the rest of the industry where order volume is going to remain somewhat lumpy. And a lot of it will be tied to the return of the economy...on the return of various components of the economy, post-COVID."The railcar manufacturer is seeing some "pockets of opportunity" from potential customers, such as shippers seeking to acquire a smaller number of new railcar builds, according to FreightCar Chief Commercial Officer Matt Tonn. "Looking forward to the next few quarters, we will maintain production line flexibility to quickly answer customers' needs in an ever-changing environment where railcar sites are expected to fluctuate," Tonn said. "We will also continue to take a problem-solving customer engagement approach, which includes accepting multiple small lot orders with our strategic shipper customers."Inquiry activity has also been "very positive" lately, outpacing the rate of inquiries seen in the third quarter, Tonn said.Given its current production levels, FreightCar America expects railcar deliveries to total between 750 and 1,000 railcars in the second half of 2020. It also has 1,839 railcars in its backlog as of June 30, and it says it hasn't lost any orders throughout the pandemic.The company has been basing its assumptions on higher North American grain and intermodal traffic in the last few weeks. It also expects the fleet in storage to trend lower as parts of the economy reopen and rail volumes improve, according to Tonn. "We don't expect demand to snap back quickly as railcars and storage remain near record levels. However, as we monitor key demand indicators, the last several weeks have seen a flattening and the decline of North American rail volumes overall. We do believe we are at an inflection point and near the bottom of their trough," Tonn said.Meanwhile, the 50-50 joint venture in Mexico with Fasemex, in which Fasemex and FreightCar America manufacture railcars, has been going smoothly, executives said, The facility in Castaños, Mexico, officially started production in July.FreightCar America estimates the facility has the capacity to produce approximately 1,000 railcars per year, with opportunities to add additional production lines if needed. The company expects to have its first railcar order complete by early September.  "The order is for a strategically important customer that was already in our backlog and we are working hard to ensure a well-executed ramp-up. The team is simultaneously preparing for the certification process in the fall," Meyer said.Second-quarter financial resultsFreightCar America is still seeking to become profitable despite facing pandemic-induced market headwinds this spring."We've made significant strides in making our business more competitive. But our financial results are nowhere near where they need to be, pandemic or no pandemic. We know we need to do more. Cost and productivity are cornerstones of our culture now," Meyer said.Like other companies, FreightCar America experienced a higher rate of absenteeism in the second quarter because of the coronavirus pandemic, which caused a drag in the company's production ramp-up in the second quarter, according to Meyer. Railcar deliveries were 100 cars below company expectations in the second quarter, he said. Railcar deliveries in the second quarter totaled over 100 railcars, compared with 11 in the first quarter of 2020 and 759 in the second quarter of 2019. The order backlog in the second quarter was 1,839 railcars worth an estimated $207 million, compared with 1,939 railcars in the first quarter of 2019. The company sustained a second quarter net loss of $12.8 million, or $0.97 per diluted share, versus a net loss of $159 million, or $1.26 per diluted share, in the second quarter of 2019.Second-quarter revenue totaled $17.5 million on deliveries of 100 railcars, compared with $5.2 million in the first quarter of 2020 and $73.6 million in the second quarter of 2019.(FreightCar America)Click here for more FreightWaves articles by Joanna Marsh.Related articles:FreightCar America anticipates challenging headwindsFreightCar America temporarily suspends production at Alabama facilityRailcar depression evident in FreightCar America's 4Q resultsSee more from Benzinga * Trucking Insurance Startup Bets On Telematics * California Trucking Remains Exempt From AB5 For Now * Final-Mile Issues Hamstring 3PLs' E-Commerce Fulfillment Growth(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • FreightCar America, Inc. Reports Second Quarter 2020 Results

    Provides second half fiscal 2020 outlook to deliver 750 to 1,000 railcars Announces start of production at the Castaños, Mexico joint venture plantCHICAGO, Aug. 10, 2020 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ: RAIL) today reported results for the second quarter ended June 30, 2020.Business Highlights * Second quarter revenue of $17.5 million on deliveries of 100 railcars * Second quarter net loss of $12.8 million, or $0.97 per share * Total cash, cash equivalents, restricted cash equivalents, marketable securities and restricted certificates of deposit of $52.4 million as of June 30, 2020 * Second quarter backlog totaled 1,839 railcars, with an aggregate value of approximately $207 million * Started production at Castaños, Mexico joint venture facility in July * Second half 2020 delivery outlook forecasted to range between 750 and 1,000 railcars * Company continues to prioritize employee and community safety, and is strictly adhering to pre-established health and safety protocols including those necessary in response to the global pandemic“During the second quarter, FreightCar America restarted two of the four production lines in Shoals, and managed through the disruption brought on by the global COVID-19 pandemic. I am very proud of how our team responded, as we focused equally on health, safety and meeting customer expectations,” said Jim Meyer, President and Chief Executive Officer of FreightCar America. “In addition to these important undertakings, we continued to move forward with our vision to become the highest quality and lowest cost producer. In July, we started production at the new joint venture plant in Castaños, Mexico along with preparation for the certification process. We were able to hire an extremely experienced workforce and are happy to welcome them to the team.”Meyer added, “The pandemic-related disruption further contributed to a difficult demand environment across our industry, which was already in the midst of a cyclical downtown. This further challenged both railcar orders and production scheduling during the second quarter.  Of note, we had one additional week of operational downtime in our Shoals facility in the quarter as we halted production to protect the health and safety of our workforce. And while the recovery pattern remains opaque, we are encouraged by the recent improvement in order inquiries for car types that we are well suited to build.”Meyer concluded, “Our overall production ramped well through July, giving us confidence in our forecast for second half deliveries to range between 750 and 1,000 railcars. As we look forward, we remain equally focused on preserving our liquidity while also continuing to build the foundation for our future. We believe we are taking the right steps to navigate both the cyclical downturn and pandemic, while repositioning FreightCar America for future success.”Second Quarter Results * Consolidated revenues were $17.5 million in the second quarter of 2020, compared to $5.2 million in the first quarter of 2020 and $73.6 million in the second quarter of 2019. The Company delivered 100 railcars in the second quarter of 2020, compared to 11 in the first quarter of 2020 and 729 railcars in the second quarter of 2019. * The Company had a backlog totaling 1,839 railcars on June 30, 2020, valued at approximately $207 million. * Consolidated operating loss for the second quarter of 2020 was $12.9 million, compared to an operating loss of $15.8 million for the second quarter of 2019. * Net loss attributable to FreightCar America, Inc. (“FCA”) in the second quarter of 2020 was $12.8 million, or $0.97 per diluted share, compared to a net loss attributable to FCA of $15.9 million, or $1.26 per diluted share, in the second quarter of 2019. Second Quarter 2020 Conference Call & Webcast InformationThe Company will host a conference call and live webcast on Tuesday, August 11, 2020 at 11:00 a.m. (Eastern Daylight Time) to discuss its second 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=141184Interested parties may also participate in the call by dialing 877-407-0789 or 201-689-8562 and should use confirmation number 13708161.  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 Daylight Time) on August 11, 2020 until 11:59 p.m. (Eastern Daylight Time) on August 25, 2020.  To access the replay, please dial 844-512-2921 or 412-317-6671.  The replay pass code is 13708161.  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 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.FreightCar America, Inc. Condensed Consolidated Balance Sheets (Unaudited)        June 30, 2020 December 31, 2019      Assets(in thousands, except for share and per share data) Current assets      Cash, cash equivalents and restricted cash equivalents$48,540  $66,257  Restricted certificates of deposit 3,855   3,769  Accounts receivable, net 6,789   6,991  Inventories, net 47,116   25,092  Income tax receivable 1,027   535  Other current assets 14,265   7,035  Total current assets 121,592   109,679         Property, plant and equipment, net 39,469   38,564  Railcars available for lease, net 38,393   38,900  Right of use asset 53,442   56,507  Other long-term assets 888   1,552  Total assets$253,784  $245,202         Liabilities and Stockholders’ Equity      Current liabilities      Accounts and contractual payables$18,054  $11,713  Accrued payroll and other employee costs 306   1,389  Reserve for workers' compensation 3,344   3,210  Accrued warranty 7,903   8,388  Customer deposits 33,012   5,123  Deferred income state and local incentives, current 2,219   2,219  Lease liability, current 15,063   14,960  Current portion of long-term debt 13,950   -  Other current liabilities 5,626   2,428  Total current liabilities 99,477   49,430  Long-term debt, net of current portion 6,250   10,200  Accrued pension costs 6,006   6,510  Deferred income state and local incentives, long-term 3,612   4,722  Lease liability, long-term 48,306   53,766  Other long-term liabilities 2,833   3,420  Total liabilities 166,484   128,048         Stockholders’ equity      Preferred stock -   -  Common stock 136   127  Additional paid in capital 83,318   83,027  Treasury stock, at cost (1,281)  (989) Accumulated other comprehensive loss (10,499)  (10,780) Retained earnings 16,086   45,824  Total FreightCar America stockholders' equity 87,760   117,209  Noncontrolling interest in JV (460)  (55) Total stockholders' equity 87,300   117,154  Total liabilities and stockholders’ equity$253,784  $245,202         FreightCar America, Inc. Condensed Consolidated Statements of Operations (Unaudited)                Three Months Ended  Six Months Ended  June 30, June 30,  2020  2019  2020   2019                (In thousands, except for share and per share data)              Revenues$17,458  $73,661  $22,655  $144,369  Cost of sales 23,602   67,637   37,602   145,194  Gross (loss) profit (6,144)  6,024   (14,947)  (825) Selling, general and administrative expenses 6,537   15,352   13,947   23,019  Loss on sale of railcars available for lease -   5,196   -   5,196  Restructuring and impairment charges 267   1,319   1,147   1,319  Operating loss (12,948)  (15,843)  (30,041)  (30,359) Interest expense and deferred financing costs (167)  (115)  (463)  (151) Other income 134   83   358   402  Loss before income taxes (12,981)  (15,875)  (30,146)  (30,108) Income tax (benefit) provision (1)  12   (3)  (189) Net loss (12,980)  (15,887)  (30,143)  (29,919) Less: Net loss attributable to noncontrolling interest in JV (189)  -   (405)  -  Net loss attributable to FreightCar America$(12,791) $(15,887) $(29,738) $(29,919) Net loss per common share attributable to FreightCar America- basic and diluted$(0.97) $(1.26) $(2.26) $(2.37) Weighted average common shares outstanding  – basic and diluted 12,405,011   12,352,271   12,385,946   12,344,684  FreightCar America, Inc. Segment Data (Unaudited)   Three Months Ended Six Months Ended  June 30, June 30,  2020  2019  2020  2019 Revenues:            Manufacturing$15,129  $70,817  $18,069  $138,412  Corporate and Other 2,329   2,844   4,586   5,957  Consolidated revenues$17,458  $73,661  $22,655  $144,369               Operating loss:            Manufacturing$(8,348) $(3,019) $(20,148) $(12,656) Corporate and Other (4,600)  (12,824)  (9,893)  (17,703) Consolidated operating loss (12,948)  (15,843)  (30,041)  (30,359) FreightCar America, Inc.  Condensed Consolidated Statements of Cash Flows  (Unaudited)         Six Months Ended June 30,  2020 2019 Cash flows from operating activities (in thousands)     Net loss$(30,143) $(29,919) Adjustments to reconcile net loss to net cash flows used in operating activities:      Non-cash restructuring and impairment charges 352   1,319  Depreciation and amortization 5,884   6,471  Change in inventory reserve 5,052   (440) Amortization expense - right-of-use leased assets 3,065   5,662  Recognition of deferred income from state and local incentives (1,110)  (1,109) Loss on sale of railcars available for lease -   5,196  Stock-based compensation recognized 17   274  Other non-cash items, net 153   90  Changes in operating assets and liabilities, net of acquisitions:      Accounts receivable 202   5,338  Inventories (27,076)  3,214  Other assets (7,188)  (2,307) Accounts and contractual payables 6,456   (4,890) Accrued payroll and employee benefits (941)  910  Income taxes receivable/payable (13)  (197) Accrued warranty (485)  (1,516) Lease liability (5,391)  (9,091) Customer deposits 27,889   (1,719) Other liabilities 2,625   7,827  Accrued pension costs and accrued postretirement benefits (131)  (266) Net cash flows used in operating activities (20,783)  (15,153)        Cash flows from investing activities             Purchase of restricted certificates of deposit (3,855)  (1,117) Maturity of restricted certificates of deposit 3,769   4,400  Purchase of securities held to maturity -   (1,986) Proceeds from maturity of securities -   20,025  Purchase of property, plant and equipment (7,009)  (2,034) Proceeds from sale of property, plant and equipment and railcars available for lease 170   11,442  Net cash flows (used in) provided by investing activities (6,925)  30,730         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 (17,717)  24,789  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$48,540  $69,859  INVESTOR & MEDIA CONTACTJoe Caminiti or Elizabeth Steckel TELEPHONE312-445-2870

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