Freightcar America, Inc. (RAIL) SEC Filing 10-Q Quarterly report for the period ending Tuesday, June 30, 2020

EXHIBIT 99.1

FreightCar America, Inc. Reports First Quarter 2020 Results

‘Back to Basics’ transformational actions and focus on protecting liquidity position Company to navigate pandemic

CHICAGO, May 11, 2020 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ: RAIL) today reported results for the first quarter ended March 31, 2020.

Business Highlights

• First quarter revenue of $5.2 million on deliveries of 11 units
• First quarter net loss of $16.9 million, or $1.29 per diluted share, compared to a net loss of $1.12 per diluted share in the first quarter of 2019
• Total cash, cash equivalents, restricted cash equivalents, marketable securities and restricted certificates of deposit of $60.5 million at March 31, 2020
• First quarter backlog totaled 1,939 railcars, up from 1,650 railcars at year-end 2019, with an aggregate value of approximately $221 million
• Company continues to prioritize employee and community safety, and adhere to pre-established safety protocols
• Company is still planning to be in production at its Castaños, Mexico facility by the end of 2020
• Due to the increased uncertainty caused by the COVID-19 pandemic, the Company is withdrawing its guidance for fiscal 2020

“First and foremost, I would like to thank all of our employees for their commitment to health and safety in these unprecedented times. Safety has always been our number one priority, and I am extremely proud of the team’s ability to respond in this environment, while continuing to meet the needs of our customers,” said Jim Meyer, President and Chief Executive Officer of FreightCar America. “There are a number of unknowns as we move through the challenges of this pandemic, but there are several items that give our team comfort right now. The ‘Back to Basics’ transformational strategy we have adhered to over the last two-and-a-half years is proving critical in this environment. We significantly improved our cost structure and manufacturing footprint, both of which position our business to capitalize on market upcycles and, just as importantly, compete and survive during tough industry conditions.”

Meyer added, “We were obviously disappointed with our delivery figures for the quarter, a result of timing and weakness in the backlog, line startups in the quarter and lost production days at the end of the quarter due to COVID-19. However, our Shoals facility is back in production, and based on what we know today, we expect deliveries to ramp up as we move through the year. Our backlog increased sequentially, and we’ve seen no order cancellations to date. We understand we are in a very uncertain world, and we are planning for a number of possible scenarios as we move forward. We are also on track with the build-out of our Mexico facility, and our goal remains to be in production by the end of 2020. We expect industry conditions to be very competitive over the next few years, and being able to produce cars in Mexico will be more important than ever. Finally, we will continue to balance the needs of transforming our company and navigating difficult industry conditions in order to preserve capital and protect our franchise.”

First Quarter Results

• Consolidated revenues were $5.2 million in the first quarter of 2020 compared to $70.7 million in the same quarter of 2019. The Company delivered 11 railcars in the first quarter of 2020, compared to 641 railcars delivered in the first quarter of 2019.
  
  
• The Company had a backlog totaling 1,939 railcars on March 31, 2020, valued at approximately $221 million.
  
  
• Consolidated operating loss for the first quarter of 2020 was $17.1 million, compared to an operating loss of $14.5 million for the first quarter of 2019. This quarter’s operating loss included a $0.9 million restructuring charge related to the closure of the Roanoke facility.
  
  
• Net loss in the first quarter of 2020 was $16.9 million, or $1.29 per diluted share, compared to net loss of $14.0 million, or $1.12 per diluted share, in the first quarter of 2019.

First Quarter 2020 Conference Call & Webcast Information

The Company will host a conference call and live webcast on Monday, May 11, 2020 at 11:00 a.m. (Eastern Daylight Time) to discuss its first 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:

https://attevent.webcasts.com/starthere.jsp?ei=1316290&tp_key=c25bd24d9c

Interested parties may also participate in the call by dialing (877) 692-8957, and using confirmation number 8606324.  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 May 11, 2020 until 12:00 a.m. (Eastern Daylight Time) on June 12, 2020.  To access the replay, please dial (866) 207-1041 or (402) 970-0847.  The replay pass code is 8676330.  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. 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; Grand Island, Nebraska; 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 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.

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