“These results were fueled by our steadfast commitments to achieving the highest levels of customer satisfaction and operational excellence, and building a world-class manufacturing campus in Castaños, Mexico,” Meyer continued. “The multi-year project to construct the campus is scheduled to be completed this August, after which we will have four production lines available and even more opportunities to differentiate ourselves within the industry.” “Consistent with our commitments, we announced the addition of Nick Randall as FCA’s first COO during the quarter,” said Meyer, who will retire this year. “Nick brings a wealth of experience and will be a great asset as we continue to lay the groundwork for our future. Lastly, we completed the previously announced financing transaction during the quarter to replace our term loans with a preferred share offering. This transaction further strengthened our balance sheet and provides us with additional flexibility as we focus on the future and growth.” FreightCar America President and CEO Jim Meyer Second-Quarter 2023 Results For the six months ended June 3, 2023, FCR revenue came in at $88.6 million on deliveries of 760 railcars, representing a 56% jump from second-quarter 2022’s $56.8 million on deliveries of 468 railcars. Other second-quarter 2023 highlights: Gross margin of 14.6% with gross profit of $13.0 million, compared to gross margin of 11.6% with gross profit of $6.6 million in the second quarter of 2022. Net loss of ($18.9) million, or ($0.73) per share and Adjusted Net income of $2.7 million, or $0.02 per share, accounting primarily for non-cash items associated with the loss on debt extinguishment and change in fair market value of warrant liability. Adjusted EBITDA of $8.0 million, compared to Adjusted EBITDA of $2.3 million in the second quarter of 2022. Railcar orders of 381 in the second quarter and 2,341 for the first half of the year, with quarter-end backlog totaling 3,288 railcars for an aggregate value of approximately $382 million. FY23 Adjusted EBITDA guidance raised to $18 – $22 million from prior guidance of $15 – $20 million. Fiscal Year 2023 Outlook FCA has raised its outlook for FY23 as follows: FCR CFO Mike Riordan “Market demand for our railcars remains strong,” said FCR CFO Mike Riordan. “While new orders were lower than anticipated for the quarter, this was primarily a function of timing. With our order backlog fully booked for 2023, we are raising our previously stated full year Adjusted EBITDA guidance range from between $15 million and $20 million to between $18 million and $22 million. Despite foreign currency headwinds alongside the broader macro environment, we are making great progress in improving our margins. Increased profitability combined with our robust backlog and a stronger balance sheet, FCA is positioned to execute as we head into the second half of the fiscal year and beyond.” The post FreightCar America Posts ‘Impressive’ 2Q23 appeared first on Railway Age. Continue reading...
