In This Article:
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Revenue: $113.3 million for Q3 2024, up from $61.9 million in Q3 2023.
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Railcar Deliveries: 961 railcars delivered in Q3 2024, compared to 503 in Q3 2023.
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Gross Profit: $16.2 million in Q3 2024.
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Gross Margin: 14.3% in Q3 2024, compared to 14.9% in Q3 2023.
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SG&A Expenses: $7.5 million in Q3 2024, flat compared to Q3 2023.
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Adjusted EBITDA: $10.9 million in Q3 2024, up from $3.5 million in Q3 2023.
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Adjusted Net Income: $7.3 million or $0.08 per diluted share in Q3 2024, compared to $0.8 million or a loss of $0.12 per share in Q3 2023.
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Operating Cash Flow: $7.2 million in Q3 2024.
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Cash Position: $44.8 million in cash with no outstanding borrowings on the revolving credit facility.
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Capital Expenditures: Approximately $1.5 million in Q3 2024, with full-year forecasted range of $5 million to $6 million.
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Backlog: 3,611 railcars valued at approximately $372 million.
Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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FreightCar America Inc (NASDAQ:RAIL) reported a significant 83% increase in top-line sales over the prior year period.
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The company delivered 961 railcars in the quarter, maintaining strong operational output.
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FreightCar America Inc (NASDAQ:RAIL) achieved a solid gross margin of 14.3% for the quarter.
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The company captured 22% of industry orders on a trailing 12-month basis, indicating strong market presence.
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FreightCar America Inc (NASDAQ:RAIL) has a strong cash position of $44.8 million with no outstanding borrowings, enhancing financial stability.
Negative Points
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The gross margin of 14.3% was slightly lower than the previous year's 14.9%, due to a mix shift in railcars delivered.
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The company anticipates a sequential decrease in gross margins from Q3 to Q4 due to timing of changeovers and mix shifts.
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FreightCar America Inc (NASDAQ:RAIL) faces industry-wide challenges with overall orders down roughly 20%.
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The company recognized a $110 million noncash charge for warrant liability due to share price appreciation.
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FreightCar America Inc (NASDAQ:RAIL) is still working towards recapitalizing its balance sheet, with no definitive updates provided.
Q & A Highlights
Q: Could you discuss the key ingredients for achieving a 14% plus gross margin this quarter, and the sustainability of these margins ahead of future product introductions? A: Michael Riordan, CFO, explained that the healthy mix of gondolas, open-top hoppers, and flat cars, along with four production lines operating at full capacity with minimal changeovers, optimized financial results. This setup is expected to sustain margins until new products like tank car conversions and production begin.