FreightCar America: ‘Improved Results’ for 1Q22; Meyer to Retire

The FreightCar America Board of Directors “has initiated a search process for the new CEO, for which Meyer is actively involved,” the company said. Meyer will step down after the appointment of his successor “to ensure a smooth transition,” and will remain a Board member following that transition, according to the railcar builder.

First-Quarter 2022 Results


For the three months ended March 31, 2022, FreightCar America revenue came in at $93.2 million on deliveries of 783 railcars, representing a 188% jump from first-quarter 2021’s $32.4 million on deliveries of 309 railcars, and a 24% increase from fourth-quarter 2021’s $75.0 million on deliveries of 604 railcars.

Quarter-end backlog totaled 2,395 railcars with an aggregate value of about $250 million. FreightCar America said its 2022 delivery outlook has been revised from between 2,600 and 2,900 railcars to between 2,800 and 3,000 railcars, “an increase of approximately 68% vs. 2021 at the mid-point of the range.”


FreightCar America Castaños, Mexico manufacturing facility.

Gross profit for first-quarter 2022 was $10.1 million with gross margin of 10.8%, “positive for the sixth consecutive quarter,” the company reported. Manufacturing operating income came in at $8.5 million, “positive for the fourth consecutive quarter.”

FreightCar America reported a first-quarter 2022 net loss of ($25.8) million, or ($1.11) per share, which was “primarily driven by a $20.7 million non-cash charge related to the change in fair market value of warrant liability and $4.2 million of stock compensation.” This compares with first-quarter 2021’s net loss of ($39.1) million, or ($1.96) per share; and with four-quarter 2021’s net income of $1.2 million, or $0.06 per share.

First-quarter 2022 adjusted EBITDA was $3.3 million. This compares with the prior-year period’s adjusted EBITDA loss of ($1.8) million, and with fourth-quarter 2021’s adjusted EBITDA of $1.2 million.


Mike Riordan, Chief Financial Officer, FreightCar America

FreightCar America’s performance is expected “to only get better as industry conditions improve and we continue to scale the company,” Meyer said. “Our efforts to take FreightCar America to the next stage of growth, with equal focus on cost discipline and manufacturing excellence, are starting to pay off.”

“We remain on track to achieve our strategic priorities for 2022, which include positive adjusted EBITDA, [and] the completion of the fabrication shop and the expansion of the wheel and axle shop by mid-year,” added Mike Riordan, who was promoted to Chief Financial Officer in March. “The construction of additional production lines, which will double our annual railcar capacity to between 4,000 and 6,000, is expected to be completed by early 2023. Finally, we expect to deliver annual revenue between $320 million and $340 million, an increase of approximately 63% year-over-year at the mid-point of the range.”

FreightCar America provides more details on its Investors’ webpage.

Also, for more on Meyer’s efforts to turn around the historic, 120-plus-year-old company by consolidating manufacturing in Mexico and positioning it to meet the needs of the market, read the May 2021 Railway Age Q&A.

The post FreightCar America: ‘Improved Results’ for 1Q22; Meyer to Retire appeared first on Railway Age.

Continue reading...