FreightCar America, Inc. Reports First Quarter 2016 Results
CHICAGO--(BUSINESS WIRE)--FreightCar America, Inc. (NASDAQ: RAIL) today reported results for the first quarter ended March 31, 2016, with net income of $12.7 million, or $1.03 per diluted share, compared to a net loss of $2.1 million, or $(0.17) per diluted share, in the same period last year. First quarter results in 2016 included an after-tax gain of $9.2 million, or $0.75 per diluted share, related to the settlement of the retiree benefits litigation.
“I am pleased with first quarter results. We achieved a double-digit gross margin for the third consecutive quarter and now have the retiree benefits litigation behind us, which will result in annual pre-tax savings of $3.7 million”
“I am pleased with first quarter results. We achieved a double-digit gross margin for the third consecutive quarter and now have the retiree benefits litigation behind us, which will result in annual pre-tax savings of $3.7 million,” said Joe McNeely, President and Chief Executive Officer. “As we enter a more competitive environment, we will manage our business by continuing to focus on ways to become more productive and gain operational efficiencies. We now expect to deliver between 6,000 and 6,500 railcars in 2016.”
Consolidated revenues were $148.6 million in the first quarter of 2016 compared to $92.8 million in the same quarter of 2015. The Company delivered 1,609 railcars in the first quarter of 2016, all of which were new railcars. This compares to 1,059 railcars delivered in the first quarter of 2015, which included 651 new and 408 rebuilt railcars. The Company had a diversified backlog totaling 7,735 railcars at March 31, 2016, valued at $759 million.
Consolidated operating income for the first quarter of 2016 was $19.6 million. Adjusted consolidated operating income, which excludes the gain on the settlement of the retiree benefits litigation, was $5.3 million in the first quarter of 2016 compared to an operating loss of $3.1 million in the first quarter of 2015. This increase was driven by higher gross profit, partially offset by higher selling, general and administrative expenses. Adjusted consolidated operating income is a non-GAAP financial measure. A reconciliation of adjusted consolidated operating income to consolidated operating income, the most directly comparable GAAP measure, is provided in the attached supplemental disclosure. Gross profit increased as a result of higher deliveries, a reduction in Shoals start-up costs and improved operating efficiency compared to the prior year period. Higher selling, general and administrative expenses, which increased to $10.6 million in the first quarter of 2016 from $8.8 million in the first quarter of 2015, reflected higher personnel-related expenses, including severance, and legal costs associated with the ongoing patent litigation.
Cash, cash equivalents, marketable securities and restricted cash were $96.4 million as of March 31, 2016, compared to $116.9 million as of December 31, 2015. The decrease reflected the $32.9 million settlement payment, including interest and plaintiffs’ attorneys’ fees, made in the first quarter of 2016 related to the retiree benefits litigation. Excluding the settlement payment, cash, cash equivalents, marketable securities and restricted cash increased by $12.4 million from December 31, 2015.
The Company will host a conference call and live webcast on Tuesday, May 3, 2016 at 11:00 a.m. (Eastern Daylight Time) to discuss the Company’s first quarter 2016 financial results. To participate in the conference call, please dial (800) 230-1092, Confirmation Number 392000. 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:
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 May 3, 2016 until 11:59 p.m. (Eastern Daylight Time) on June 3, 2016. To access the replay, please dial (800) 475-6701. The replay pass code is 392000. 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...