Company expects to finish its 24-month ‘Back to Basics’ initiative at year-end with more than $5,000 savings in material cost per average railcar on a run-rate basis, $12 million in future cash savings from fixed cost reductions, and four key new or redesigned products. Focus now shifts to completing the Company’s recently announced joint venture plant in Mexico and weathering industry headwinds.CHICAGO, Oct. 30, 2019 (GLOBE NEWSWIRE) — FreightCar America, Inc. (NASDAQ: RAIL) today reported results for the third quarter ended September 30, 2019.Business HighlightsThird quarter revenue of $40.7 million on deliveries of 467 unitsThird quarter net loss of $35.7 million, or $2.83 per diluted share, which includes a non-cash goodwill impairment charge of $21.5 million, or $1.74 per shareTotal cash, cash equivalents, restricted cash equivalents, marketable securities and restricted certificates of deposit of $59.9 million at September 30, 2019Backlog as of September 30, 2019 totaled 1,704 railcars with an aggregate value of approximately $188 millionCompany reaffirmed 2019 delivery guidance of between 2,200 and 2,500 railcarsDuring the quarter, the Company announced the formation of a joint venture with Fabricaciones y Servicios de México, S.A. de C.V. (“Fasemex”) to manufacture railcars in Castaños, MexicoThe Company also announced during the quarter the closure of its Roanoke, Virginia manufacturing facility which, when combined with the new lease agreement for its Shoals facility, is expected to result in $12 million per year in future cash savingsThe Company also reaffirmed material cost savings guidance of between $2,000 and $3,000 per railcar, on a run-rate basis which, when combined with savings achieved in 2018, yields more than $5,000 per railcar, excluding commodity price movements“We are pleased with the foundational improvements achieved over the prior 24 months and our ability to more successfully compete than in the recent past,” said Jim Meyer, President and Chief Executive Office of FreightCar America. “At the same time, continued industry headwinds have delayed the impact of our improvements and our potential to demonstrate results, as indicated by our third quarter performance. Nevertheless, we remain committed to completing our new product plans and to the recently announced new footprint in Mexico. When the new plant is finished, FreightCar America will have the most modern railcar plants in both the U.S. and Mexico.”Third Quarter ResultsConsolidated revenues were $40.7 million in the third quarter of 2019 compared to $79.0 million in the same quarter of 2018. The Company delivered 467 railcars in the third quarter of 2019, which included 255 new railcars and 212 rebuilds. This compares to 888 railcars delivered in the third quarter of 2018, which included 498 new railcars and 390 rebuilt railcars.Consolidated operating loss for the third quarter of 2019 was $36.3 million, compared to an operating loss of $8.7 million for the third quarter of 2018.The Company recorded a $21.5 million impairment charge after completing its annual review of goodwill and intangible assets. The charge is related to the decline of the Company’s common stock price, the Company’s most recent financial results and the current condition of the freight car market.Net loss in the third quarter of 2019 was $35.7 million, or $2.83 per diluted share, compared to net loss of $6.2 million, or $0.50 per diluted share, in the third quarter of 2018.Cash, cash equivalents, restricted cash equivalents, marketable securities and restricted certificates of deposit were $59.9 million as of September 30, 2019, compared to $68.0 million at December 31, 2018.Third Quarter 2019 Conference Call & Webcast InformationThe Company will host a conference call and live webcast on Thursday, October 31, 2019 at 11:00 a.m. (Eastern Daylight Time) to discuss the Company’s third quarter 2019 financial results. To participate in the conference call, please dial (800) 230-1093, Confirmation Number 473325.  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#: 473325If 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 Daylight Time) on October 31, 2019 until 11:59 p.m. (Eastern Standard Time) on December 1, 2019.  To access the replay, please dial (800) 475-6701.  The replay pass code is 473325.  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 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; Roanoke, Virginia; 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 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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