Last10K.com

Freightcar America, Inc. (RAIL) SEC Filing 10-K Annual report for the fiscal year ending Saturday, December 31, 2016

Freightcar America, Inc.

CIK: 1320854 Ticker: RAIL

EXHIBIT 99.1

FreightCar America, Inc. Reports Fourth Quarter and Full Year 2016 Results

Highlights

  • Fourth quarter revenue of $135.5 million on deliveries of 1,364 units
  • Fourth quarter net income of $0.1 million, or $0.01 per diluted share
  • Full year 2016 net income of $12.3 million, or $1.00 per diluted share
  • Year-end backlog totaling 4,259 railcars valued at $419 million
  • Additional cost reductions enacted to reduce annual selling, general and administrative costs by approximately $3.0 million
  • Total cash, cash equivalents and restricted cash of $98.7 million at December 31, 2016

CHICAGO, Feb. 27, 2017 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ:RAIL) today reported results for the fourth quarter ended December 31, 2016, with net income of $0.1 million, or $0.01 per diluted share, compared to net income of $11.7 million, or $0.94 per diluted share, in the same period last year.

“In 2016, the rail industry experienced a second year of reduced car loadings and a large oversupply of railcars, which contributed to a 45% reduction in deliveries in the fourth quarter,” said Joe McNeely, President and Chief Executive Officer. “Additionally, in the fourth quarter, we continued to experience higher than expected manufacturing costs associated with certain first-time car builds. We continue to address our production processes and expect improvements in these builds going forward.”

“Our delivery outlook for 2017 reflects year-over-year volume reductions as lower industry order trends are expected to persist. In this period of weak demand, we are focused on maintaining a strong cash position which provides stability. Based upon our current production schedules and customer delivery requirements, we expect to deliver between 3,200 and 3,800 new railcars in 2017, including 100 leased railcars,” Mr. McNeely continued. “As a result of this outlook, we have implemented additional reductions in our salaried administrative workforce and discretionary spending, which are expected to yield an additional $3.0 million in annualized savings in addition to the $5.0 million of annualized savings we announced last year. Furthermore, we will be idling our Danville, Illinois, manufacturing facility for railcar production effective March 31, 2017.”

FOURTH QUARTER RESULTS

Consolidated revenues were $135.5 million in the fourth quarter of 2016 compared to $203.3 million in the same quarter of 2015. The Company delivered 1,364 railcars in the fourth quarter of 2016, which included 1,137 new railcars and 227 rebuilt railcars. This compares to 2,464 railcars delivered in the fourth quarter of 2015, which included 1,692 new railcars, 672 rebuilt railcars and 100 leased railcars.

Consolidated operating loss for the fourth quarter of 2016 was $3.1 million. Adjusted operating loss, which excludes restructuring and impairment charges totaling $0.7 million in the fourth quarter of 2016, was $2.4 million in the fourth quarter of 2016 compared to operating income of $16.1 million in the fourth quarter of 2015. Adjusted operating income (loss) is a non-GAAP financial measure. A reconciliation of adjusted operating income (loss) to operating income, the most directly comparable GAAP measure, is provided in the attached supplemental disclosure.

The income tax benefit of $3.2 million recorded in the fourth quarter of 2016 included a $2.7 million benefit from the reduction of a reserve for an uncertain tax position.

Cash, cash equivalents and restricted cash were $98.7 million as of December 31, 2016.

COST REDUCTION PLAN

In the first quarter of 2017, the Company has made further reductions to its salaried administrative workforce and other discretionary costs, which are expected to reduce its annual operating costs by approximately $3.0 million. The total estimated costs relating to this program are approximately $1.0 million of employee-related costs. 

Mr. McNeely concluded, “When the cost reduction plans are fully implemented, we will have eliminated approximately $8.0 million of costs on an annualized basis, allowing FreightCar America to be well-positioned when the freight car market recovers.” 

BACKLOG

Total manufacturing backlog was 4,259 units at December 31, 2016, compared to 9,840 units at December 31, 2015 and 5,613 units at September 30, 2016.

FULL YEAR RESULTS

Consolidated revenues for the fiscal year ended December 31, 2016 were $523.7 million compared to $772.9 million for the fiscal year ended December 31, 2015. The Company delivered 5,559 railcars in 2016, which included 5,332 new railcars and 227 rebuilt railcars. This compares to 8,980 railcars delivered in 2015, which included 6,280 new railcars, 2,600 rebuilt railcars and 100 railcars leased.

Consolidated operating income for 2016 was $15.8 million compared to $46.8 million in 2015. Adjusted operating income, which excludes restructuring and impairment charges, the gain on settlement of the retiree benefit plan obligation in 2016 and the gain on sale of the railcar repair and maintenance services business in 2015, was $3.8 million in 2016 compared to adjusted operating income of $42.2 million in 2015.

Net income in 2016 was $12.3 million, or $1.00 per diluted share, compared to $31.8 million, or $2.58 per diluted share, in 2015. 

The Company will host a conference call and live webcast on Tuesday, February 28, 2017 at 11:00 a.m. (Eastern Standard Time) to discuss the Company’s fourth quarter 2016 financial results. To participate in the conference call, please dial (800) 230-1085, Confirmation Number 418091.  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: https://im.csgsystems.com/cgi-bin/confCast 

Conference ID#: 418091

If you need technical assistance, call the toll-free AT&T Conference Casting Support Help Line at (888) 793-6118. Please note that the webcast is listen-only and webcast participants will not be able to participate in the question and answer portion of the conference call.  An audio replay of the conference call will be available beginning at 1:00 p.m. (Eastern Standard Time) on February 28, 2017 until 11:59 p.m. (Eastern Daylight Time) on March 28, 2017.  To access the replay, please dial (800) 475-6701.  The replay pass code is 418091.  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 JAIX Leasing Company subsidiary. FreightCar America designs and builds high-quality railcars, including coal cars, bulk commodity cars, covered hopper cars, intermodal and non-intermodal flat cars, mill gondola cars, coil steel cars and boxcars. It is headquartered in Chicago, Illinois and has facilities in the following locations: Cherokee, Alabama; Danville, Illinois; Grand Island, Nebraska; Johnstown, Pennsylvania; and Roanoke, Virginia. More information about FreightCar America is available on its website at www.freightcaramerica.com.

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

  
FreightCar America, Inc. 
Condensed Consolidated Balance Sheets 
(Unaudited) 
  
 December 31,
 December 31,
 
 2016  2015
 
 (In thousands)
 
Assets       
Current assets       
Cash and cash equivalents$92,750 $83,068 
Restricted cash and restricted certificates of deposit 5,970  6,896 
Marketable securities   26,951 
Accounts receivable, net 25,207  39,708 
Inventories, net 97,904  115,354 
Income taxes receivable 13,283   
Other current assets 6,056  8,704 
Total current assets 241,170  280,681 
   
Property, plant and equipment, net 46,347  42,596 
Railcars available for lease, net 24,018  24,729 
Goodwill 21,521  21,521 
Deferred income taxes, net 4,221  34,722 
Other long-term assets 1,978  2,655 
Total assets$339,255 $406,904 
   
Liabilities and Stockholders’ Equity  
Current liabilities  
Accounts and contractual payables$34,536 $34,304 
Accrued payroll and other employee costs 3,117  8,708 
Reserve for workers’ compensation 4,444  4,165 
Accrued warranty 8,324  9,239 
Customer deposits and deferred revenue 371  8,615 
Income taxes payable 9  4,180 
Other current liabilities 3,334  3,346 
Total current liabilities 54,135  72,557 
Accrued pension costs 6,821  6,673 
Accrued postretirement benefits, less current portion 5,769  72,497 
Deferred income state and local incentives, long-term 11,380  12,190 
Accrued taxes and other long-term liabilities 4,236  7,876 
Total liabilities 82,341  171,793 
   
Stockholders’ equity  
Preferred stock    
Common stock 127  127 
Additional paid in capital 92,025  93,939 
Treasury stock, at cost (14,583) (17,516)
Accumulated other comprehensive loss (8,163) (21,078)
Retained earnings 187,508  179,639 
Total stockholders’ equity 256,914  235,111 
Total liabilities and stockholders’ equity$339,255 $406,904 
       


FreightCar America, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
 
 Three Months Ended
December 31,
 Twelve Months Ended
December 31,
  2016  2015   2016  2015 
 (In thousands, except for share and per share data)
      
Revenues$135,523 $203,299  $523,731 $772,854 
Cost of sales 128,797  176,047   483,552  690,193 
Gross profit 6,726  27,252   40,179  82,661 
Selling, general and administrative expenses 9,090  11,190   36,376  41,663 
Gain on sale of railcars available for lease        (1,187)
Gain on sale of railcar repair and maintenance services business and facility        (4,578)
Gain on settlement of postretirement benefit obligation, net of plaintiffs’ attorneys’ fees      (14,306)  
Restructuring and impairment charges 730     2,261   
Operating (loss) income (3,094) 16,062   15,848  46,763 
Interest expense and deferred financing costs (56) (59)  (171) (243)
Other income 16  25   111  116 
(Loss) income before income taxes (3,134) 16,028   15,788  46,636 
Income tax (benefit) provision (3,208) 4,374   3,464  14,831 
Net income$74 $11,654  $12,324 $31,805 
      
Net income per common share - basic$0.01 $0.95  $1.00 $2.59 
      
Net income per common share - diluted$0.01 $0.94  $1.00 $2.58 
      
Weighted average common shares outstanding -     
basic 12,268,072  12,243,144   12,262,275  12,175,955 
      
Weighted average common shares outstanding -     
diluted 12,268,072  12,248,387   12,262,275  12,217,755 
      
Dividends declared per common share$0.09 $0.09  $0.36 $0.36 
      


FreightCar America, Inc.
Condensed Segment Data
(Unaudited)
 
  Three Months Ended
December 31,
 Twelve Months Ended
December 31,
  2016  2015   2016  2015 
 (In thousands)
Revenues:     
Manufacturing$133,805 $200,316  $516,063 $745,723 
Corporate and other (1) 1,718  2,983   7,668  27,131 
Consolidated revenues$135,523 $203,299  $523,731 $772,854 
      
Operating (Loss) Income:     
Manufacturing$3,833 $24,254  $29,012 $69,165 
Corporate and other (1)(2)(3) (6,927) (8,192)  (13,164) (22,402)
Consolidated operating (loss) income$(3,094)$16,062  $15,848 $46,763 
              

(1) Results for the twelve months ended December 31, 2015 included results from the Company’s railcar repair and maintenance services business that was sold on September 30, 2015.
(2) Results for the twelve months ended December 31, 2016 included a $14,306 gain on settlement of a postretirement benefit plan obligation, net of plaintiffs’ attorneys’ fees.
(3) Results for the three and twelve months ended December 31, 2016 included restructuring and impairment charges of $730 and $2,261, respectively.

 
 
FreightCar America, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 
 Twelve Months Ended
 December 31,
  2016  2015 
 (In thousands)
Cash flows from operating activities  
Net income$12,324 $31,805 
Adjustments to reconcile net income to net cash
flows provided by (used in) operating activities:
  
Depreciation and amortization 9,736  10,028 
Recognition of deferred income from state and local incentives (2,129) (1,415)
Gain on sale of railcars available for lease   (1,187)
Gain on sale of railcar repair and maintenance services business and facility   (4,578)
Gain on settlement of postretirement benefit plan obligation (15,606)  
Deferred income taxes 22,723  (2,679)
Stock-based compensation expense recognized 1,149  2,183 
Other non-cash items 1,800  1,465 
Changes in operating assets and liabilities:  
Accounts receivable 15,911  (38,398)
Inventories 17,056  (36,927)
Other assets 2,992  (1,642)
Accounts and contractual payables 260  137 
Accrued payroll and employee benefits (5,589) 2,033 
Income taxes receivable/payable (12,746) 6,374 
Accrued warranty (915) 497 
Customer deposits and other liabilities (8,690) (34,802)
Payment for settlement of postretirement benefit plan obligation (31,616)  
Accrued pension costs and accrued postretirement benefits (6,445) 1,421 
Net cash flows provided by (used in) operating activities 215  (65,685)
   
Cash flows from investing activities  
Purchase of restricted certificates of deposit (6,370) (2,165)
Maturity of restricted certificates of deposit 7,296  1,284 
Purchase of securities held to maturity   (32,944)
Proceeds from maturity of securities 27,001  54,004 
Proceeds from sale of property, plant and equipment and railcars
  available for lease
 2  7,654 
Proceeds from sale of railcar repair and maintenance services business
  and facility
   17,589 
Purchases of property, plant and equipment (13,846) (16,699)
Cost of railcars available for lease   (8,724)
State and local incentives received   15,733 
Net cash flows provided by investing activities 14,083  35,732 
   
Cash flows from financing activities  
Stock option exercise   4,925 
Employee stock settlement (78) (1,052)
Deferred financing costs (83)  
Excess tax benefit from stock-based compensation   35 
Cash dividends paid to stockholders (4,455) (4,419)
Net cash flows used in financing activities (4,616) (511)
   
Net increase (decrease) in cash and cash equivalents 9,682  (30,464)
Cash and cash equivalents at beginning of period 83,068  113,532 
Cash and cash equivalents at end of period$92,750 $83,068 
       

FreightCar America, Inc.
Reconciliation of Non-GAAP Measures
(Unaudited)

This press release contains non-GAAP measures which adjust operating income (loss) to exclude the impact of the following items:

  • For the twelve months ended December 31, 2015, a $4.6 million gain on sale of the railcar repair and maintenance services business;
  • For the twelve months ended December 31, 2016, a $14.3 million pre-tax gain on settlement of the retiree benefits litigation; and
  • For the three and twelve months ended December 31, 2016, $0.7 million and $2.3 million, respectively, of restructuring and impairment charges related to the Company’s cost reduction plan.

The Company believes that adjusted operating income (loss) information is useful to investors because it allows investors to more effectively compare the Company’s financial results prior to and after the impact of the items described above, which are unusual in nature. Adjusted operating income (loss) is not a financial measure presented in accordance with GAAP.

In addition, the presentation of this non-GAAP measure is intended to enhance the usefulness of the financial information by providing measures that the Company’s management uses internally to evaluate the Company’s baseline performance. Accordingly, when analyzing our operating performance, investors should not consider adjusted operating income (loss) in isolation or as a substitute for operating income (loss) in accordance with GAAP. Our calculation of such non-GAAP measures is not necessarily comparable to that of other similarly titled measures reported by other companies. A reconciliation of adjusted operating income (loss) to operating income (loss), the most directly comparable GAAP measure, follows:

 Three Months Ended
December 31,
Twelve Months Ended
December 31,
  2016  2015 2016  2015 
 (In thousands)(In thousands)
     
Operating income (loss), as reported$(3,094)$16,062$15,848 $46,763 
Less: Gain on sale of railcar repair and maintenance services business and facility -  - -  (4,578)
Less: Gain on settlement of retiree benefit plan obligations, net of plaintiffs’ attorneys’ fees -  - (14,306) - 
Add: Restructuring and impairment charges 730  - 2,261  - 
Adjusted operating income (loss)$(2,364)$16,062$3,803 $42,185 
            

MEDIA CONTACT Matthew S. Kohnke
TELEPHONE(800) 458-2235


The following information was filed by Freightcar America, Inc. (RAIL) on Monday, February 27, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one year to another to evaluate Freightcar America, Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Freightcar America, Inc..

Continue

Assess how Freightcar America, Inc.'s management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Freightcar America, Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2017 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

Tools

Rating

Learn More
Bullish Bearish Neutral
Filter by Sentiment:
All
Positive
Negative
Filter by Category:
All
Financial
Revenue
Other
Filter by Subcategory:
All
Earnings
Expense
Cash Flow
Product
Income
Other
Inside Freightcar America, Inc.'s 10-K Annual Report:

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Document And Entity Information
Valuation And Qualifying Accounts
Valuation And Qualifying Accounts (details)
Consolidated Balance Sheets
Consolidated Balance Sheets (parenthetical)
Consolidated Statements Of Cash Flows
Consolidated Statements Of Comprehensive Income (loss)
Consolidated Statements Of Operations
Consolidated Statements Of Stockholders' Equity
Accumulated Other Comprehensive Income (loss)
Accumulated Other Comprehensive Income (loss) (changes In Accumulated Other Comprehensive Income) (details)
Accumulated Other Comprehensive Income (loss) (components Of Aoci) (details)
Accumulated Other Comprehensive Income (loss) (reclassifications Out Of Accumulated Other Comprehensive Income) (details)
Accumulated Other Comprehensive Income (loss) (tables)
Description Of Business (details)
Description Of The Business
Earnings Per Share
Earnings Per Share (narrative) (details)
Earnings Per Share (tables)
Earnings Per Share (weighted Average Common Shares Outstanding) (details)
Employee Benefit Plans
Employee Benefit Plans (amounts Recognized In Accumulated Other Comprehensive Loss) (details)
Employee Benefit Plans (amounts Recognized In The Consolidated Balance Sheets) (details)
Employee Benefit Plans (asset Allocations) (details)
Employee Benefit Plans (assumptions Used In The Measurement Of Net Periodic Cost) (details)
Employee Benefit Plans (assumptions Used To Determine End Of Year Benefit Obligations) (details)
Employee Benefit Plans (change In Accumulated Other Comprehensive Loss) (details)
Employee Benefit Plans (change In Plan Assets And Funded Status) (details)
Employee Benefit Plans (components Of Net Periodic Benefit Cost (details)
Employee Benefit Plans (expected Future Benefit Payments) (details)
Employee Benefit Plans (fair Value Of Pension Plan Assets) (details)
Employee Benefit Plans (narrative) (details)
Employee Benefit Plans (tables)
Fair Value Measurements
Fair Value Measurements (financial Assets And Liabilities That Were Recorded At Fair Value On A Recurring Basis) (details)
Fair Value Measurements (tables)
Income Taxes
Income Taxes (components Of Deferred Tax Assets And Liabilities) (details)
Income Taxes (composition Of Income Tax Expense) (details)
Income Taxes (income Tax Years Subject To Examination) (details)
Income Taxes (narrative) (details)
Income Taxes (reconciliation Of Income Tax Rate) (details)
Income Taxes (reconciliation Of Unrecognized Tax Benefits) (details)
Income Taxes (tables)
Intangible Assets And Goodwill
Intangible Assets And Goodwill (intangible Assets) (details)
Intangible Assets And Goodwill (narrative) (details)
Intangible Assets And Goodwill (tables)
Inventories
Inventories (narrative) (details)
Inventories (schedule Of Inventory Current) (details)
Inventories (tables)
Labor Agreements
Labor Agreements (narrative) (details)
Leased Railcars
Leased Railcars (future Minimum Rental Revenues On Leases) (details)
Leased Railcars (narrative) (details)
Leased Railcars (tables)
Marketable Securities
Marketable Securities (details)
Other Commitments
Other Commitments (narrative) (details)
Other Commitments (operating Leases Of Lessee Disclosure) (details)
Other Commitments (tables)
Product Warranties
Product Warranties (changes In Warranty Reserve) (details)
Product Warranties (narrative) (details)
Product Warranties (tables)
Property, Plant And Equipment
Property, Plant And Equipment (narrative) (details)
Property, Plant And Equipment (schedule Of Property, Plant And Equipment) (details)
Property, Plant And Equipment (tables)
Restructuring And Impairment Charges
Restructuring And Impairment Charges (narrative) (details)
Revenue Sources And Concentration Of Sales
Revenue Sources And Concentration Of Sales (narrative) (details)
Revenue Sources And Concentration Of Sales (schedule Of Revenue Sources And Concentration Of Sales) (details)
Revenue Sources And Concentration Of Sales (tables)
Revolving Credit Facility
Revolving Credit Facility (narrative) (details)
Risks And Contingencies
Sale Of Repair And Maintenance Services Business
Sale Of Repair And Maintenance Services Business (narrative) (details)
Segment Information
Segment Information (narrative) (details)
Segment Information (reconciliation Of Assets From Segment To Consolidated) (details)
Segment Information (schedule Of Segment Reporting Information, By Segment) (details)
Segment Information (tables)
Selected Quarterly Financial Data (unaudited)
Selected Quarterly Financial Data (unaudited) (details)
Selected Quarterly Financial Data (unaudited) (tables)
State And Local Incentives
State And Local Incentives (changes In Deferred Income From State Incentives) (details)
State And Local Incentives (details)
State And Local Incentives (policy)
State And Local Incentives (tables)
Stock-based Compensation
Stock-based Compensation (narrative) (details)
Stock-based Compensation (nonvested Restricted Shares) (details)
Stock-based Compensation (option Activity) (details)
Stock-based Compensation (options Outstanding) (details)
Stock-based Compensation (stock Option Grants) (details)
Stock-based Compensation (tables)
Summary Of Significant Accounting Policies
Summary Of Significant Accounting Policies (narrative) (details)
Summary Of Significant Accounting Policies (policy)
Summary Of Significant Accounting Policies (useful Life Of Property, Plant And Equipment) (details)
Ticker: RAIL
CIK: 1320854
Form Type: 10-K Annual Report
Accession Number: 0001193125-17-069639
Submitted to the SEC: Fri Mar 03 2017 3:22:20 PM EST
Accepted by the SEC: Fri Mar 03 2017
Period: Saturday, December 31, 2016
Industry: Railroad Equipment

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/rail/0001193125-17-069639.htm