Freightcar America, Inc. · NASDAQ:RAIL
Freightcar America — Planet MicroCap Showcase: VEGAS 2024
26 slides from Freightcar America's conference presentation, May 1, 2024
Slide 1: Investor Presentation May 2024
Investor Presentation May 2024
Slide 2: Disclosures
Disclosures Forward-Looking Statements This presentation contains statements relating to our expected financial performance, liquidity, future business prospects, events and plans that are “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995. Forward-loo
Slide 3: Company Overview
Company Overview 3
Slide 4: Re-engineered Business Model Built to Achieve Profitable Growth
Re-engineered Business Model Built to Achieve Profitable Growth INDUSTRY-LEADING PURE PLAY MANUFACTURER OF HIGH-QUALITY RAILCARS FY23 358M $ 11.7 % $ 6,658 Revenue Gross Margin Adj. EBITDA1 / Railcar Down 1.8% YoY Up 460 bps YoY Up 152% YoY 3,022 175K+ 5,000+ Railcar Deliveries Railcars in Service T
Slide 5: Transitioning From Over a Century of Coal Car Industry Dominance
Transitioning From Over a Century of Coal Car Industry Dominance To address industry-wide challenges, the new management team initiated a multi-year product, footprint, and cost transformation 1900s – 2000s 2010s – 2020s 2020 – 2024 Established Pivot to a New Product, Footprint and Cost Transformati
Slide 6: Company Leadership
Company Leadership Nicholas Randall Michael Riordan Matthew Tonn Celia Perez Chief Executive Officer Chief Financial Officer Chief Commercial Officer General Counsel • Joined FCA in 2023 to • Joined FCA in 2020 as part • Joined FCA in 2019 to lead • Joined FCA in 2022 to lead Legal prepare Company f
Slide 7: Evolution of Enhanced Earnings Quality
Evolution of Enhanced Earnings Quality Historical Company: FY19 Restructured FCA: FY23 2 manufacturing locations 1 manufacturing location # Manufacturing Locations 10,000+ railcar capacity 5,000+ railcar capacity 2,276 railcar deliveries 3,022 railcar deliveries ( 18,020) $ $ 6,658 Adj. EBITDA1 / Ra
Slide 8: Executing Strategic Pivot to Drive Profitable Growth
Executing Strategic Pivot to Drive Profitable Growth WORLD-CLASS MANUFACTURER OF RAIL EQUIPMENT, GENERATING INDUSTRY LEADING 2024 & Beyond MARGINS WITH SIGNIFICANT OPPORTUNITY FOR FURTHER EXPANSION Strategic focus – scaling the business at a higher margin Manufacturing Footprint / Cost Commercializa
Slide 9: Manufacturing Campus Positioned to Scale
Manufacturing Campus Positioned to Scale Castaños Railcar Capacity | Timing of Ramping Facility 6000 Line 4 5000 4000 3000 Line 3 2000 Line 2 Castaños, Mexico Facility: 1000 Line 1 2023 completion 0.7M 2K Sq. ft. employees Vertically integrated paint, fabrication, wheel & axle shops 0 FY20 FY21 FY22
Slide 10: Vertically-Integrated Facility Driving Significant Margin Improvement
Vertically-Integrated Facility Driving Significant Margin Improvement Gross Profit / RAILCAR Optimized operational efficiency and cost-effectiveness $20,000 $10,000 Ability to effectively manage supply chain challenges due to consolidated footprint and vertical integration $0 Proximity to low-cost r
Slide 11: Uniquely Positioned within Market
Uniquely Positioned within Market Pure Play Manufacturer That Does Niche Manufacturing Capability Optimized Backlog Not Compete with Its Customers FCA’s business is approximately FCA’s flexible manufacturing and By maintaining open capacity starting equally divided between Class I industry respected
Slide 12: Pillars for Value Creation
Pillars for Value Creation GROWTH STRATEGY Drive Profitable Growth in Recapitalize Debt Structure Future Product Expansion Railcar Manufacturing Completed new state-of-the- With the additional growth, FreightCar Facilities, people, proximity to the U.S. art 0.7M ft2 campus America will be positioned
Slide 13: Financial Overview
Financial Overview 13
Slide 14: 4Q23 Financial Results
4Q23 Financial Results Revenue ($ in millions) Solid quarterly results realizing continued gross margin expansion and Adj. EBITDA generation $129.0 $126.6 Revenues of $126.6M, down 1.9% YoY 4Q22 4Q23 • 1,021 railcar deliveries in 4Q23, down from 1,150 railcar deliveries in 4Q22 due to product change
Slide 15: Historical Financial Performance
Historical Financial Performance Revenue ($ in millions) / Railcar Deliveries (units) 2020-2023 CAGR Deliveries 42% | Revenue 35% $546 $365 $358 4,200 $230 $203 3,184 3,022 2,276 $108 1,731 751 FY19 FY20 FY21 FY22 FY23 FY24E1 Adjusted EBITDA2 ($ in millions) $35.0 $20.1 $8.4 ($7.2) ($29.5) ($41.0) 1
Slide 16: Cash Flow
Cash Flow Operating Cash Flow Key Metrics FY23 ($ in millions) $ 40.5M $11.5 1 $4.8 Cash ($19.0) FY19 ($58.9) FY20 ($55.4) FY21 FY22 FY23 $ 29.4M Total Debt $ 12.7M Delivered second consecutive year of positive operating cash flow Capital Expenditures 16 1. Reflects product changeovers, plant constr
Slide 17: Full Year 2024 Guidance
Full Year 2024 Guidance Metric Target YoY Growth at Midpoint Railcar Deliveries 4,000 - 4,400 Cars 39.0 % Revenue $ 520 - 572M $ 52.5 % Adj. EBITDA1 $ 32 - 38M $ 74 .1 % 17 1. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA due to the inherent difficulty in forecasti
Slide 18: Investment Highlights
Investment Highlights Strong Revenue Achieved FY23 Generation 5,000+ Annual revenue of $358M Revenue / Railcar Capacity at ~60% with Increased Capacity Capacity capacity Equity Capital (as of 12/31/23) Common Stock 17.9 million Employee Options 0.32 million Industry Leading 11.7% FY23 $6,658 FY23 Ad
Slide 19: Diluted Share Count at Various Prices
Diluted Share Count at Various Prices REPRESENTS SHARES AND DILUTED SECURITIES OUTSTANDING AT VARIOUS PRICE PER SHARE LEVELS (SHARES IN MILLIONS) Common Stock $ 2.70 $ 3.50 $ 4.50 $ 5.50 $ 6.50 $ 7.50 $ 8.50 $ 10.00 $ 15.00 $ 20.00 Shares held by Affiliates 6.11 6.11 6.11 6.11 6.11 6.11 6.11 6.11 6.
Slide 20: Appendix
Appendix
Slide 21: Reconciliation of (Loss) Income Before Taxes to EBITDA and Adjusted EBITDA
Reconciliation of (Loss) Income Before Taxes to EBITDA and Adjusted EBITDA Three Months Ended December 31 Year Ended December 31 2023 2022 2023 2022 Loss Before Income Taxes $(2,242) $(9,293) $(22,088) $(36,535) Depreciation & Amortization 1,416 1,025 4,606 4,135 Interest Expense, Net 2,043 7,874 15
Slide 22: Reconciliation of (Loss) Income Before Taxes to EBITDA and Adjusted EBITDA
Reconciliation of (Loss) Income Before Taxes to EBITDA and Adjusted EBITDA Adjusted EBITDA represents EBITDA before the following charges: A. This adjustment removes the non-cash (income) expense associated with the change in fair market value of the warrant liability. B. During the fourth quarters
Slide 23: Reconciliation of (Loss) Income Before Taxes to EBITDA and Adjusted EBITDA
Reconciliation of (Loss) Income Before Taxes to EBITDA and Adjusted EBITDA FY FY FY FY FY 2019 2020 2021 2022 2023 Loss Before Income Taxes $(75,353) $(85,899) $(40,034) $(36,535) $(22,088) Depreciation & Amortization 12,438 9,202 4,304 4,135 4,606 Interest Expense, Net 609 2,225 13,317 25,423 15,03
Slide 24: Reconciliation of (Loss) Income Before Taxes to EBITDA and Adjusted EBITDA
Reconciliation of (Loss) Income Before Taxes to EBITDA and Adjusted EBITDA Adjusted EBITDA represents EBITDA before the following charges: A. This adjustment removes the non-cash expense associated with the J. Incurred certain costs during 2022 related to new production line. change in fair market v
Slide 25: Reconciliation of (Loss) Income Before Taxes to EBITDA and Adjusted EBITDA
Reconciliation of (Loss) Income Before Taxes to EBITDA and Adjusted EBITDA We believe that Adjusted EBITDA is useful to investors evaluating our operating performance compared to that of other companies in our industry because it eliminates the impact of certain non-cash charges and other special it
Slide 26: Thank you!
FREIGHTCAR AMERICA Thank you!
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