Second Quarter 2018 Highlights
American Railcar Industries, Inc. (ARI or the Company) (NASDAQ:
ARII) today reported its second quarter 2018 financial results.
John O'Bryan, President and CEO of ARI, commented, "The North
American railcar market has shown signs of recovery, including
carload growth driven by a wide array of commodity types and a
decline in railcars in storage over the first half of 2018. Our
inquiry activity has remained strong during the second quarter of
2018, and the industry reported quarterly orders of over 23,000
railcars, its highest point since the fourth quarter of 2014.
"However, an oversupply remains in the marketplace of most
railcar types, including covered hoppers and tanks, which continues
to drive a competitive pricing environment. We continue to align
our production with market conditions and industry demand to meet
customers' short term and long term needs. We are committed to our
vision of aligning people, processes and tools to deliver world
class results in safety, quality and service. We remain disciplined
in investing in railcars for lease by strategically partnering with
our customers. With ARI's diversified lease fleet of over 13,300
railcars and our railcar services network, we are well-positioned
to identify and deliver solutions for the railcar industry.”
Second Quarter Revenue Summary
Total consolidated revenues were $146.5 million for the second
quarter of 2018, an increase of 34% when compared to $109.0 million
for the same period in 2017. This increase was primarily
driven by increased revenues in the manufacturing segment and
slight increases in the railcar leasing and railcar services
segments.
Manufacturing revenues were $89.4 million for the second quarter
of 2018, an increase of 62% compared to $55.1 million in the second
quarter of 2017. This increase was primarily driven by
increased railcar shipments for direct sale for both hopper and
tank railcars, partially offset by lower selling prices due to the
mix of types of hopper and tank railcars shipped during the second
quarter of 2018 compared to the second quarter of 2017 and more
competitive pricing across the North American railcar market.
During the second quarter of 2018, ARI shipped 914 railcars for
direct sale and 19 railcars for lease compared to 531 railcars for
direct sale and 545 railcars for lease during the same period in
2017. Railcars built for the lease fleet represented 2% of
ARI’s railcar shipments during the second quarter of 2018 compared
to 51% for the same period in 2017. Due to the prevalence of
lower lease rates in today's North American railcar market, the
Company continues to maintain a disciplined approach to investing
in its lease fleet. This approach, coupled with lower demand and
the timing of customers placing orders for railcars for direct
sale, led to a lower rate of shipments of railcars for lease during
the second quarter of 2018 compared to the same period of 2017.
Because revenues and earnings related to leased railcars are
recognized over the life of the lease based on the terms of the
contract, the Company's quarterly and annual results may vary
depending on the mix of lease versus direct sale railcars that the
Company ships during a given period.
Manufacturing revenues for the second quarter of 2018, on a
consolidated basis, exclude $1.9 million of revenues related to
railcars built for the Company's lease fleet compared to $54.6
million for the same period in 2017. This decrease in
revenues related to railcars built for our lease fleet was due to
lower quantities of both tank and hopper railcars shipped for
lease, as discussed above. These revenues are based on an estimated
fair market value of the leased railcars as if they had been sold
to a third party, and are not recognized in consolidated revenues
as railcar sales.
Railcar leasing revenues were $34.8 million for the second
quarter of 2018, an increase of 3% compared to $33.7 million for
the same period of 2017. The primary reason for the increase in
revenue was an increase in the number of railcars on lease,
partially offset by a decline in weighted average lease rates for
new railcars for lease, leased railcars being reassigned to other
customers, and lease renewals compared to the same period in
2017. ARI had 13,341 railcars in its lease fleet as of
June 30, 2018 compared to 12,414 railcars as of June 30,
2017.
Railcar services revenues were $22.3 million for the second
quarter of 2018, an increase of 10% compared to $20.2 million for
the same period in 2017. This increase was primarily due to revenue
generated from retrofit projects, partially offset by lower demand
for traditional repair services.
Consolidated earnings from operations were $17.4 million for the
second quarter of 2018, a decrease of 22% from $22.2 million for
the same period in 2017. Consolidated operating margins decreased
to 11.8% for the second quarter of 2018 compared to 20.3% for the
same period in 2017. These decreases were primarily driven by
slightly lower earnings from operations in each of the operating
segments and a $3.6 million impairment loss recorded on certain of
the Company's leased railcars.
Manufacturing earnings from operations on a consolidated basis
were $2.2 million for the second quarter of 2018 compared to $2.5
million for the same period in 2017. The decrease in these earnings
was primarily due to more competitive pricing and higher costs
associated with lower production volumes, both partially offset by
an increase in railcar shipments for direct sale. Profit on
railcars built for the Company’s lease fleet was $0.1 million and
$4.8 million for the second quarter of 2018 and 2017, respectively,
and is excluded from consolidated manufacturing earnings from
operations. Profit on railcars built for the Company's lease
fleet is based on an estimated fair market value of revenues as if
the railcars had been sold to a third party, less the cost to
manufacture. Profit on railcars built for the Company’s lease fleet
decreased due to fewer railcars built for the Company's lease fleet
during the second quarter of 2018.
Railcar leasing earnings from operations on a consolidated basis
were $17.1 million for the second quarter of 2018 compared to $21.6
million for the same period in 2017. This decrease was primarily
due to a $3.6 million impairment loss recorded on certain of the
Company's leased railcars, as well as increased maintenance costs
and lower lease rates on certain renewals and reassignments.
Without the impact of this impairment loss, railcar leasing
earnings from operations on a consolidated basis would have been
$20.7 million.
Railcar services earnings from operations on a consolidated
basis were $2.6 million for the second quarter of 2018 compared to
$3.0 million for the same period in 2017. This decrease was
primarily due to an unfavorable mix of work and costs incurred as
we ramp up retrofit projects.
Selling, general and administrative expenses were $9.7 million
for the second quarter of 2018 compared to $9.0 million for the
same period in 2017. These increases were primarily due to
increased compensation costs relating to additional personnel hired
to increase our sales and marketing team and other supporting
groups in connection with transitioning our lease fleet management
in-house and higher share-based compensation expense, driven by
fluctuations in our stock price, partially offset by decreased
legal expenses.
Net earnings for the second quarter of 2018 were $9.2 million,
or $0.48 per share, compared to $10.9 million, or $0.57 per share,
in the same period in 2017. This decrease was driven largely
by an impairment loss recorded on certain of the Company's leased
railcars, which had a negative impact of $0.13 per share, and a
decrease in earnings from operations, as discussed above, partially
offset by lower income tax expense as a result of the Tax Cuts and
Jobs Act, which was enacted in December 2017 and decreased the
federal income tax rate from 35% to 21%.
EBITDA, adjusted to exclude share-based compensation expense,
other income related to short-term investment activity, and the
impact of impairment losses recorded on certain of the Company's
leased railcars (Adjusted EBITDA), was $37.5 million for the second
quarter of 2018 compared to $37.0 million for the same period in
2017. The increase was primarily the result of an increase of
railcar shipments for direct sale partially offset by lower
earnings from operations. A reconciliation of the Company’s net
earnings to EBITDA and Adjusted EBITDA (both non-GAAP financial
measures) is set forth in the supplemental disclosure attached to
this press release.
Year-to-Date Results
Consolidated revenues for the first six months
of 2018 were $262.8 million compared
to $223.7 million for the comparable period in 2017.
The Company shipped 1,530 direct sale railcars
and 214 railcars built for the Company's lease fleet
during the first six months of 2018 compared
to 1,080 direct sale railcars
and 1,147 railcars built for the lease fleet during the
same period in 2017. Railcars built for the lease fleet
represented 12% of ARI's railcar shipments in the
first six months of 2018 compared
to 52% for the same period in 2017.
Consolidated earnings from operations for the
first six months of 2018 were $38.4
million, a decrease of 13% from $44.1
million for the comparable period in 2017. Consolidated
earnings from operations for the first six months
of 2018 and 2017 excluded $1.5
million and $10.9 million, respectively, of profit on
railcars built for the lease fleet that is eliminated in
consolidation. The decrease in consolidated earnings from
operations was primarily driven by slightly lower earnings from
operations in each of the Company's operating segments, including
the $3.6 million impact of an impairment loss to the leasing
segment, representing an impairment loss recorded on certain of the
Company's leased railcars, and increased selling, general, and
administrative expenses.
Operating margins were 14.6% for the
first six months of 2018 compared
to 19.7% for the same period of 2017. This decrease
was primarily due to more competitive pricing for hopper and tank
railcars, increased costs as a result of operating at lower
production levels, and the $3.6 million impact of an impairment
loss recorded on certain of the Company's leased railcars.
Net earnings for the first six months
of 2018 were $22.2 million, or $1.16 per
share compared to $21.5 million, or $1.12 per share,
for the comparable period in 2017. This increase was primarily
driven by lower income tax expense as a result of the Tax Cuts and
Jobs Act, which was enacted in December 2017 and decreased the
federal income tax rate from 35% to 21%, partially offset by lower
earnings from operations and the impact of an impairment loss
recorded on certain of the Company's leased railcars, which reduced
earnings per share by $0.13.
Adjusted EBITDA was $74.4 million for the
first six months of 2018, an increase of $1.2
million from $73.1 million for the comparable period
in 2017. The increase was primarily the result of increased
railcar shipments for direct sale partially offset by lower
earnings from operations. A reconciliation of the Company’s net
earnings to EBITDA and Adjusted EBITDA (both non-GAAP financial
measures) is set forth in the supplemental disclosure attached to
this press release.
Cash Flow and Liquidity
The Company’s earnings have contributed to cash
flow from operations in the first six months of 2018 of $51.4
million. As of June 30, 2018, ARI had working capital of
$182.1 million, including $103.8 million of cash and cash
equivalents.
As of June 30, 2018, the Company had $533.0
million of debt outstanding, net of unamortized debt issuance costs
of $4.5 million. The Company had borrowing availability of $200.0
million under a revolving loan.
The Company paid dividends totaling $15.3
million during the first six months of 2018. On July 27,
2018, the Company’s board of directors declared a cash dividend of
$0.40 per share of common stock of the Company to shareholders of
record as of September 7, 2018 that will be paid on
September 21, 2018.
The Company has not repurchased any shares of its common stock
thus far in 2018 under its stock repurchase program. Board
authorization for approximately $164.0 million remains available
for further stock repurchases.
Backlog
ARI's backlog as of June 30, 2018 was 3,387
railcars with an estimated market value of $335.8 million. Of
the total backlog, we currently expect 1,041 railcars, or 30.7%,
having an estimated market value of $121.9 million, will be placed
into the Company's lease fleet.
Conference Call and Webcast
ARI will host a webcast and conference call on
Wednesday, August 1, 2018 at 10:00 am (Eastern Time) to
discuss the Company’s second quarter 2018 financial results. In
conjunction with this press release, ARI has posted a supplemental
information presentation to its website. To participate in the
webcast, please log-on to ARI’s investor relations page through the
ARI website at americanrailcar.com. To participate in the
conference call, please dial 877-745-9389. Participants are asked
to log-on to the ARI website or dial in to the conference call
approximately 10 to 15 minutes prior to the start time. An audio
replay of the call will also be available on the Company’s website
promptly following the earnings call.
About ARI
ARI is a prominent North American designer and
manufacturer of hopper and tank railcars. ARI provides its railcar
customers with integrated solutions through a comprehensive set of
high quality products and related services. ARI manufactures and
sells railcars, custom designed railcar parts, and other industrial
products. ARI and its subsidiaries also lease railcars manufactured
by the Company to certain markets, and ARI has begun managing these
lease railcars in-house. In addition, ARI and its subsidiaries
provide railcar repair services through its various repair
facilities, including mini-shops and mobile units, offering a range
of services from full to light repair. More information about
American Railcar Industries, Inc. is available on its website at
americanrailcar.com or call the Investor Relations Department,
636.940.6000.
Forward Looking Statement
DisclaimerThis press release contains statements relating
to the Company's expected financial performance, objectives,
long-term strategies and/or future business prospects, events and
plans that are forward-looking statements. Forward-looking
statements represent the Company’s estimates and assumptions only
as of the date of this press release. Such statements include,
without limitation, statements regarding: various estimates we have
made in preparing our financial statements, expected future trends
relating to our industry, products and markets, anticipated
customer demand for our products and services, trends relating to
our shipments, leasing business, railcar services, revenues, profit
margin, capacity, financial condition, and results of operations,
trends related to shipments for direct sale versus lease, our
backlog and any implication that our backlog may be indicative of
our future revenues, our vision, strategic objectives and long-term
strategies, our results of operations, financial condition and the
sufficiency of our capital resources, our capital expenditure plans
and their anticipated benefits, short- and long-term liquidity
needs, ability to service our current debt obligations and future
financing plans, our Stock Repurchase Program, anticipated benefits
regarding the growth of our leasing business, the mix of railcars
in our lease fleet and our lease fleet financings, anticipated
production schedules for our products and the anticipated
production schedules of our joint ventures, our plans regarding
future dividends and the anticipated performance and capital
requirements of our joint ventures. These forward-looking
statements are subject to known and unknown risks and uncertainties
that could cause actual results to differ materially from those
anticipated. Investors should not place undue reliance on
forward-looking statements, which speak only as of the date they
are made and are not guarantees of future performance. The
payment of future dividends, if any, and the amount thereof, will
be at the discretion of ARI’s board of directors and will depend
upon the Company’s operating results, strategic plans, capital
requirements, financial condition, provisions of its borrowing
arrangements, applicable law and other factors the Company’s board
of directors considers relevant. Other potential risks and
uncertainties that could adversely affect our business and
prospects include without limitation: our ability to meet our
vision, strategic objectives and long-term strategies; our
prospects in light of the cyclical nature of our business; the
health of and prospects for the overall railcar industry; the risk
of being unable to market or remarket railcars for sale or lease at
favorable prices or on favorable terms or at all; the highly
competitive nature of the manufacturing, railcar leasing and
railcar services industries; the risks associated with ongoing
compliance with transportation, environmental, health, safety, and
regulatory laws and regulations, which may be subject to change;
the impact, costs and expenses of any warranty claims or impairment
losses we may be subject to now or in the future; our ability to
recruit, retain and train qualified personnel; risks relating to
our compliance with the FRA directive released September 30, 2016
and subsequently revised and superseded on November 18, 2016 (the
Revised Directive) and the settlement agreement related thereto,
any developments related to the Revised Directive and the
settlement agreement related thereto and any costs or loss of
revenue related thereto; the impact of policies and priorities of
certain governments or other issues that may cause trade and market
conditions that result in fluctuations in the supply and costs of
raw materials, including steel and railcar components, and delays
in the delivery of such raw materials and components and their
impact on demand and margin; the variable purchase patterns of our
railcar customers and the timing of completion, customer acceptance
and shipment of orders, as well as the mix of railcars for lease
versus direct sale; our ability to manage overhead and variations
in production rates; our reliance upon a small number of customers
that represent a large percentage of our revenues and backlog;
fluctuations in commodity prices, including oil and gas; the risks
associated with our current joint ventures and anticipated capital
needs of, and production capabilities at our joint ventures;
uncertainties regarding the Tax Cuts and Jobs Act of 2017 or other
changes in our tax provisions or positions; the ongoing risks
related to our relationship with Mr. Carl Icahn, our principal
beneficial stockholder through Icahn Enterprises L.P. (IELP), and
certain of his affiliates; the impact, costs and expenses of any
litigation we may be subject to now or in the future; risks
relating to the transition of the management of our railcar leasing
business from ARL to in-house management following completion of
the sale of ARL; risks related to the loss of executive officers;
the sufficiency of our liquidity and capital resources, including
long-term capital needs to support the growth of our lease fleet;
the risks related to our and our subsidiaries' indebtedness and
compliance with covenants contained in our and our subsidiaries'
financing arrangements; the impact of repurchases pursuant to our
Stock Repurchase Program on our current liquidity and the ownership
percentage of our principal beneficial stockholder through IELP,
Mr. Carl Icahn; the conversion of our railcar backlog into revenues
equal to our reported estimated backlog value; the risks and impact
associated with any potential joint ventures, acquisitions,
strategic opportunities, dispositions or new business endeavors;
the integration with other systems and ongoing management of our
new enterprise resource planning system; and the additional risk
factors described in ARI’s filings with the Securities and Exchange
Commission. The Company expressly disclaims 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.
AMERICAN RAILCAR INDUSTRIES, INC.100 Clark
Street, St. Charles, Missouri
63301americanrailcar.com636.940.6000
AMERICAN RAILCAR INDUSTRIES, INC.
AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In thousands, except share and per share
amounts) |
|
|
|
|
|
June 30, 2018 |
|
December 31, 2017 |
|
(unaudited) |
|
|
Assets |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
103,765 |
|
|
$ |
100,244 |
|
Restricted cash |
16,606 |
|
|
16,640 |
|
Accounts receivable, net |
38,249 |
|
|
43,804 |
|
Accounts receivable, due from related parties |
370 |
|
|
778 |
|
Income taxes receivable |
18,151 |
|
|
19,115 |
|
Inventories, net |
77,972 |
|
|
54,147 |
|
Prepaid expenses and other current assets |
6,283 |
|
|
6,464 |
|
Total current assets |
261,396 |
|
|
241,192 |
|
Property,
plant and equipment, net |
155,487 |
|
|
162,535 |
|
Railcars on
lease, net |
1,034,331 |
|
|
1,036,414 |
|
Income tax
receivable |
|
|
|
Goodwill |
7,169 |
|
|
7,169 |
|
Investments
in and loans to joint ventures |
21,454 |
|
|
22,571 |
|
Other
assets |
970 |
|
|
3,545 |
|
Total assets |
$ |
1,480,807 |
|
|
$ |
1,473,426 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
27,536 |
|
|
$ |
21,275 |
|
Accounts payable, due to related parties |
— |
|
|
41 |
|
Accrued expenses, including loss contingency of $6,407 and
$6,548 at June 30, 2018 and December 31, 2017, respectively |
14,738 |
|
|
12,787 |
|
Accrued compensation |
11,617 |
|
|
12,874 |
|
Short-term debt, including current portion of long-term
debt |
25,388 |
|
|
25,590 |
|
Total current
liabilities |
79,279 |
|
|
72,567 |
|
Long-term
debt, net of unamortized debt issuance costs of $4,539 and $4,647
at June 30, 2018 and December 31, 2017, respectively |
507,574 |
|
|
520,024 |
|
Deferred
tax liability |
201,682 |
|
|
194,084 |
|
Pension and
post-retirement liabilities |
7,811 |
|
|
8,099 |
|
Other
liabilities, including loss contingency of $2,237 and $2,283 at
June 30, 2018 and December 31, 2017, respectively |
14,164 |
|
|
15,118 |
|
Total liabilities |
810,510 |
|
|
809,892 |
|
Stockholders’ equity: |
|
|
|
Common
stock, $0.01 par value, 50,000,000 shares authorized, 19,083,878
shares outstanding as of both June 30, 2018 and December 31,
2017 |
213 |
|
|
213 |
|
Additional
paid-in capital |
239,609 |
|
|
239,609 |
|
Retained
Earnings |
522,037 |
|
|
514,453 |
|
Accumulated
other comprehensive loss |
(5,531 |
) |
|
(4,710 |
) |
Treasury
Stock |
(86,031 |
) |
|
(86,031 |
) |
Total stockholders’ equity |
670,297 |
|
|
663,534 |
|
Total liabilities and
stockholders’ equity |
$ |
1,480,807 |
|
|
$ |
1,473,426 |
|
AMERICAN RAILCAR INDUSTRIES, INC.
AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS |
(In thousands, except per share amounts,
unaudited) |
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Revenues: |
|
|
|
|
|
|
|
Manufacturing (including revenues from affiliates of zero for both
the three and six months ended June 30, 2018 and $137 for both of
the same periods in 2017) |
$ |
89,440 |
|
|
$ |
55,087 |
|
|
$ |
153,581 |
|
|
$ |
115,813 |
|
Railcar
leasing (including revenues from affiliates of $404 and $816 for
the three and six months ended June 30, 2018, respectively, and
$223 and $447 for the same periods in 2017) |
34,804 |
|
|
33,717 |
|
|
68,925 |
|
|
67,552 |
|
Railcar
services (including revenues from affiliates of $15 and $17 for the
three and six months ended June 30, 2018, respectively, and $4,425
and $10,572 for the same periods in 2017) |
22,284 |
|
|
20,216 |
|
|
40,260 |
|
|
40,336 |
|
Total revenues |
146,528 |
|
|
109,020 |
|
|
262,766 |
|
|
223,701 |
|
Cost of revenues: |
|
|
|
|
|
|
|
Manufacturing |
(84,207 |
) |
|
(51,121 |
) |
|
(142,390 |
) |
|
(105,680 |
) |
Other operating (loss) income |
57 |
|
|
1,033 |
|
|
44 |
|
|
1,064 |
|
Railcar
leasing |
(13,387 |
) |
|
(11,617 |
) |
|
(26,380 |
) |
|
(23,676 |
) |
Railcar
services |
(18,429 |
) |
|
(16,146 |
) |
|
(34,005 |
) |
|
(33,536 |
) |
Total cost of revenues |
(115,966 |
) |
|
(77,851 |
) |
|
(202,731 |
) |
|
(161,828 |
) |
Gross profit |
30,562 |
|
|
31,169 |
|
|
60,035 |
|
|
61,873 |
|
Selling,
general and administrative |
(9,743 |
) |
|
(9,019 |
) |
|
(18,356 |
) |
|
(17,821 |
) |
Net gains
on disposition of leased railcars |
96 |
|
|
— |
|
|
277 |
|
|
13 |
|
Loss on
asset impairment |
(3,554 |
) |
|
— |
|
|
(3,554 |
) |
|
— |
|
Earnings from operations |
17,361 |
|
|
22,150 |
|
|
38,402 |
|
|
44,065 |
|
Interest
income (including income from related parties of $192 and $412 for
the three and six months ended June 30, 2018, respectively, and
$306 and $642 for the same periods in 2017) |
496 |
|
|
368 |
|
|
915 |
|
|
741 |
|
Interest
expense |
(5,296 |
) |
|
(5,488 |
) |
|
(10,636 |
) |
|
(11,019 |
) |
Other
income |
1 |
|
|
1,867 |
|
|
1 |
|
|
1,921 |
|
Earnings
from joint ventures |
535 |
|
|
796 |
|
|
1,878 |
|
|
1,346 |
|
Earnings before income taxes |
13,097 |
|
|
19,693 |
|
|
30,560 |
|
|
37,054 |
|
Income tax
expense |
(3,905 |
) |
|
(8,794 |
) |
|
(8,377 |
) |
|
(15,587 |
) |
Net earnings |
$ |
9,192 |
|
|
$ |
10,899 |
|
|
$ |
22,183 |
|
|
$ |
21,467 |
|
Net
earnings per common share—basic and diluted |
$ |
0.48 |
|
|
$ |
0.57 |
|
|
$ |
1.16 |
|
|
$ |
1.12 |
|
Weighted
average common shares outstanding—basic and diluted |
19,084 |
|
|
19,084 |
|
|
19,084 |
|
|
19,084 |
|
Cash
dividends declared per common share |
$ |
0.40 |
|
|
$ |
0.40 |
|
|
$ |
0.80 |
|
|
$ |
0.80 |
|
AMERICAN RAILCAR INDUSTRIES, INC.
AND SUBSIDIARIES |
SEGMENT DATA |
(In thousands, unaudited) |
|
|
Three Months Ended June 30,
2018 |
|
Revenues |
|
|
|
External |
|
Intersegment |
|
Total |
|
Earnings (Loss) from
Operations |
|
(in thousands) |
Manufacturing |
$ |
89,440 |
|
|
$ |
2,279 |
|
|
$ |
91,719 |
|
|
$ |
2,269 |
|
Railcar
leasing (1) |
34,804 |
|
|
— |
|
|
34,804 |
|
|
13,991 |
|
Railcar
services |
22,284 |
|
|
2,107 |
|
|
24,391 |
|
|
2,985 |
|
Corporate |
— |
|
|
— |
|
|
— |
|
|
(4,534 |
) |
Eliminations |
— |
|
|
(4,386 |
) |
|
(4,386 |
) |
|
2,650 |
|
Total
Consolidated |
$ |
146,528 |
|
|
$ |
— |
|
|
$ |
146,528 |
|
|
$ |
17,361 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
2017 |
|
Revenues |
|
|
|
External |
|
Intersegment |
|
Total |
|
Earnings (Loss) from
Operations |
|
(in thousands) |
Manufacturing |
$ |
55,087 |
|
|
$ |
55,442 |
|
|
$ |
110,529 |
|
|
$ |
7,299 |
|
Railcar
leasing |
33,717 |
|
|
— |
|
|
33,717 |
|
|
18,690 |
|
Railcar
services |
20,216 |
|
|
1,883 |
|
|
22,099 |
|
|
3,329 |
|
Corporate |
— |
|
|
— |
|
|
— |
|
|
(4,953 |
) |
Eliminations |
— |
|
|
(57,325 |
) |
|
(57,325 |
) |
|
(2,215 |
) |
Total
Consolidated |
$ |
109,020 |
|
|
$ |
— |
|
|
$ |
109,020 |
|
|
$ |
22,150 |
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
2018 |
|
Revenues |
|
|
|
External |
|
Intersegment |
|
Total |
|
Earnings (Loss) from
Operations |
|
(in thousands) |
Manufacturing |
$ |
153,581 |
|
|
$ |
23,054 |
|
|
$ |
176,635 |
|
|
$ |
6,677 |
|
Railcar
leasing (1) |
68,925 |
|
|
— |
|
|
68,925 |
|
|
31,414 |
|
Railcar
services |
40,260 |
|
|
4,211 |
|
|
44,471 |
|
|
4,681 |
|
Corporate |
— |
|
|
— |
|
|
— |
|
|
(8,312 |
) |
Eliminations |
— |
|
|
(27,265 |
) |
|
(27,265 |
) |
|
3,942 |
|
Total
Consolidated |
$ |
262,766 |
|
|
$ |
— |
|
|
$ |
262,766 |
|
|
$ |
38,402 |
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
2017 |
|
Revenues |
|
|
|
External |
|
Intersegment |
|
Total |
|
Earnings (Loss) from
Operations |
|
(in thousands) |
Manufacturing |
$ |
115,813 |
|
|
$ |
115,546 |
|
|
$ |
231,359 |
|
|
$ |
16,450 |
|
Railcar
leasing |
67,552 |
|
|
— |
|
|
67,552 |
|
|
37,500 |
|
Railcar
services |
40,336 |
|
|
2,215 |
|
|
42,551 |
|
|
5,045 |
|
Corporate |
— |
|
|
— |
|
|
— |
|
|
(9,225 |
) |
Eliminations |
— |
|
|
(117,761 |
) |
|
(117,761 |
) |
|
(5,705 |
) |
Total
Consolidated |
$ |
223,701 |
|
|
$ |
— |
|
|
$ |
223,701 |
|
|
$ |
44,065 |
|
(1)— The earnings from operations for the
leasing segment include the impact of an impairment loss recognized
on certain railcars within the Company's lease fleet. The impact of
the impairment loss was $(3.6) million, net of an intercompany
elimination of $8.0 million, for both the three and six months
ended June 30, 2018 and zero for the same periods in 2017. |
AMERICAN RAILCAR INDUSTRIES, INC.
AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS |
(In thousands, unaudited) |
|
|
|
Six Months Ended |
|
June 30, |
|
2018 |
|
2017 |
Operating activities: |
|
|
|
Net earnings |
$ |
22,183 |
|
|
$ |
21,467 |
|
Adjustments
to reconcile net earnings to net cash provided by operating
activities: |
|
|
|
Depreciation |
30,573 |
|
|
28,174 |
|
Amortization of deferred costs |
251 |
|
|
250 |
|
Gain on disposal of property, plant, equipment and leased
railcars |
(267 |
) |
|
(12 |
) |
Non-cash impairment on leased railcars |
3,554 |
|
|
— |
|
Earnings from joint ventures |
(1,878 |
) |
|
(1,346 |
) |
Provision for deferred income taxes |
7,365 |
|
|
26,720 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable, net |
9,188 |
|
|
(393 |
) |
Accounts receivable, due from
related parties |
388 |
|
|
2,357 |
|
Income taxes receivable |
957 |
|
|
(12,248 |
) |
Inventories, net |
(26,703 |
) |
|
4,264 |
|
Prepaid expenses and other
current assets |
(503 |
) |
|
235 |
|
Accounts payable |
6,281 |
|
|
(4,983 |
) |
Accounts payable, due to related
parties |
(41 |
) |
|
(3,065 |
) |
Accrued expenses and taxes |
707 |
|
|
(8,401 |
) |
Other |
(688 |
) |
|
956 |
|
Net cash
provided by operating activities |
51,367 |
|
|
52,152 |
|
Investing activities: |
|
|
|
Purchases of property, plant and equipment |
(4,542 |
) |
|
(3,422 |
) |
Grant Proceeds |
— |
|
|
— |
|
Capital expenditures - leased railcars |
(19,269 |
) |
|
(103,765 |
) |
Proceeds from the disposal of property, plant, equipment and
leased railcars |
1,157 |
|
|
73 |
|
Proceeds from repayments of loans by joint ventures |
2,953 |
|
|
2,953 |
|
Net cash
used in investing activities |
(19,701 |
) |
|
(100,075 |
) |
Financing activities: |
|
|
|
Repayments of debt |
(12,762 |
) |
|
(12,669 |
) |
Payment of common stock dividends |
(15,267 |
) |
|
(15,267 |
) |
Net cash
used in financing activities |
(28,029 |
) |
|
(27,936 |
) |
Effect of
exchange rate changes on cash |
(150 |
) |
|
69 |
|
Net
increase (decrease) in cash, cash equivalents, and restricted
cash |
3,487 |
|
|
(75,790 |
) |
Cash, cash
equivalents, and restricted cash at beginning of period |
116,884 |
|
|
195,285 |
|
Cash, cash
equivalents, and restricted cash at end of period |
$ |
120,371 |
|
|
$ |
119,495 |
|
|
|
|
|
Balance Sheet Reconciliation: |
|
|
|
Cash and
cash equivalents |
$ |
103,765 |
|
|
$ |
102,811 |
|
Restricted
cash |
16,606 |
|
|
16,684 |
|
Total cash,
cash equivalents and restricted cash as presented above |
$ |
120,371 |
|
|
$ |
119,495 |
|
AMERICAN RAILCAR INDUSTRIES, INC.
AND SUBSIDIARIES |
RECONCILIATION OF NET EARNINGS TO
EBITDA AND ADJUSTED EBITDA |
(In thousands, unaudited) |
|
|
|
|
|
Three Months Ended June
30, |
|
Six Months Ended June
30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Net
earnings |
$ |
9,192 |
|
|
$ |
10,899 |
|
|
$ |
22,183 |
|
|
$ |
21,467 |
|
Income tax
expense |
3,905 |
|
|
8,794 |
|
|
8,377 |
|
|
15,587 |
|
Interest
expense |
5,296 |
|
|
5,488 |
|
|
10,636 |
|
|
11,019 |
|
Interest
income |
(496 |
) |
|
(368 |
) |
|
(915 |
) |
|
(741 |
) |
Depreciation |
15,642 |
|
|
14,301 |
|
|
30,573 |
|
|
28,174 |
|
EBITDA |
$ |
33,539 |
|
|
$ |
39,114 |
|
|
$ |
70,854 |
|
|
$ |
75,506 |
|
Expense
(income) related to stock appreciation rights compensation |
366 |
|
|
(225 |
) |
|
(46 |
) |
|
(472 |
) |
Other
income on short-term investment activity |
$ |
— |
|
|
(1,867 |
) |
|
$ |
— |
|
|
(1,921 |
) |
Loss on
impairment of leased railcars |
$ |
3,554 |
|
|
— |
|
|
3,554 |
|
|
— |
|
Adjusted
EBITDA |
$ |
37,459 |
|
|
$ |
37,022 |
|
|
$ |
74,362 |
|
|
$ |
73,113 |
|
EBITDA represents net earnings before income tax
expense, interest expense (income) and depreciation of property,
plant and equipment. The Company believes EBITDA is useful to
investors in evaluating ARI’s operating performance compared to
that of other companies in the same industry. In addition, ARI’s
management uses EBITDA to evaluate operating performance. The
calculation of EBITDA eliminates the effects of financing, income
taxes and the accounting effects of capital spending. These items
may vary for different companies for reasons unrelated to the
overall operating performance of a company’s business. EBITDA is
not a financial measure presented in accordance with U.S. generally
accepted accounting principles (U.S. GAAP). Accordingly, when
analyzing the Company’s operating performance, investors should not
consider EBITDA in isolation or as a substitute for net earnings,
cash flows provided by operating activities or other statement of
operations or cash flow data prepared in accordance with U.S. GAAP.
The calculation of EBITDA is not necessarily comparable to that of
other similarly titled measures reported by other companies.
Adjusted EBITDA represents EBITDA before
share-based compensation expense (income) related to stock
appreciation rights (SARs), other income related to our short-term
investments, and losses from the impairment of long-lived assets.
Management believes that Adjusted EBITDA is useful to investors in
evaluating the Company’s operating performance, and therefore uses
Adjusted EBITDA for that purpose. The Company’s SARs, which settle
in cash, are revalued each period based primarily upon changes in
ARI’s stock price. Management believes that eliminating the expense
(income) associated with share-based compensation and income
associated with short-term investments allows management and ARI’s
investors to understand better the operating results independent of
financial changes caused by the fluctuating price and value of the
Company’s common stock and short-term investments. Adjusted EBITDA
is not a financial measure presented in accordance with U.S. GAAP.
Accordingly, when analyzing operating performance, investors should
not consider Adjusted EBITDA in isolation or as a substitute for
net earnings, cash flows provided by operating activities or other
statements of operations or cash flow data prepared in accordance
with U.S. GAAP. The Company’s calculation of Adjusted EBITDA is not
necessarily comparable to that of other similarly titled measures
reported by other companies.
American Railcar (NASDAQ:ARII)
과거 데이터 주식 차트
부터 8월(8) 2024 으로 9월(9) 2024
American Railcar (NASDAQ:ARII)
과거 데이터 주식 차트
부터 9월(9) 2023 으로 9월(9) 2024