Freightcar America, Inc. · NASDAQ:RAIL
Freightcar America — Investor Presentation (May 2024)
25 slides from Freightcar America's investor presentation, May 8, 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, financial condition, and/or future business prospects, events and/or plans that are “forward-looking statements” as defined under the Private Securities Litigation Reform Act
Slide 3: Company Overview
Company Overview
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 $438M Revenue Up 24.3% YoY 1. See appendix for reconciliation of non-GAAP measures 3,507 Railcar Deliveries 175K+ Railcars in Service Today LTM as of 3/31/2024 10.4% Gross
Slide 5: 2020–2024 Product, Footprint and Cost Transformation
2020 – 2024 Product, Footprint and Cost Transformation Completed closures of all legacy, US manufacturing plants 1000th railcar produced at Castaños, Mexico facility Achieving industry leading margins 5000th railcar produced at Castaños, Mexico facility 1900s – 2000s Established Leadership Capturing
Slide 6: Company Leadership
Company Leadership Michael Riordan Chief Financial Officer Joined FCA in 2020 as part of turn-around team Focused on strategic planning and capital management 17+ years in finance, accounting and operations Matthew Tonn Chief Commercial Officer Joined FCA in 2019 to lead Company’s realignment in the
Slide 7: Evolution of Enhanced Earnings Quality
Historical Company: FY19 Transformed FCA: FY23 Evolution of Enhanced Earnings Quality 7 ($18,020) Adj. EBITDA1 / Railcar 10,000+ railcar capacity $6,658 Adj. EBITDA1 / Railcar # Manufacturing Locations 2 manufacturing locations 1 manufacturing location 5,000+ railcar capacity 2,276 railcar deliverie
Slide 8: World-Class Manufacturer of Rail Equipment
WORLD-CLASS MANUFACTURER OF RAIL EQUIPMENT, GENERATING INDUSTRY LEADING MARGINS WITH SIGNIFICANT OPPORTUNITY FOR FURTHER EXPANSION Executing Strategic Pivot to Drive Profitable Growth Minimized fixed costs to provide agility during cyclical downturns Breakeven Adj. EBITDA at extremely low volumes Fa
Slide 9: Manufacturing Campus Positioned to Scale
Manufacturing Campus Positioned to Scale Castaños, Mexico Facility: Plant designed for efficient future expansion Castaños Railcar Capacity | Timing of Ramping Facility Line 4 Line 3 Line 2 Line 1 0.7M 2K 5K+ Sq. ft. employees Annual car capacity 2023 completion 4 Production lines Vertically integra
Slide 10: Vertically-Integrated Facility Driving Significant Margin Improvement
Vertically-Integrated Facility Driving Significant Margin Improvement Optimized operational efficiency and cost-effectiveness 10 Proximity to low-cost regional supply base Gross Profit / RAILCAR Ability to effectively manage supply chain challenges due to consolidated footprint and vertical integrat
Slide 11: Uniquely Positioned within Market
Uniquely Positioned within Market FCA’s flexible manufacturing and industry respected technical team allow for product run sizes and order customization considered undesirable by the competition By maintaining open capacity starting in months 8 – 9, combined with flexibility designed into its manufa
Slide 12: Pillars for Value Creation Growth Strategy
2020 PIMCO $40M secured term loan Pillars for Value Creation GROWTH STRATEGY With the additional growth, FreightCar America will be positioned to recapitalize its debt structure Completed new state-of-the-art 0.7M ft2 campus Well trained, 2,000-person workforce with commitment to lean manufacturing
Slide 13: Financial Overview
Financial Overview
Slide 14: 1Q24 Financial Results
1Q24 Financial Results Adjusted EBITDA1 Solid quarterly results realizing strong revenue growth and record quarterly deliveries 14 Revenue ($ in millions) Gross Profit See appendix for reconciliation of non-GAAP measures Revenues of $161.1M, up 98.8% YoY 1,223 railcar deliveries in 1Q24, up from 738
Slide 15: Historical Financial Performance
Historical Financial Performance Adjusted EBITDA2 ($ in millions) 15 1. Reflects midpoint of FY24 guidance as of 3/18/2024 2. See appendix for reconciliation of non-GAAP measures Revenue ($ in millions) / Railcar Deliveries (units) 2020-2023 CAGR Deliveries 42% | Revenue 35% 1 1
Slide 16: Cash Flow
Cash Flow Operating Cash Flow ($ in millions) Key Metrics FY23 Delivered second consecutive year of positive operating cash flow $40.5M Cash $29.4M Total Debt $12.7M Capital Expenditures 16 1 1. Reflects product changeovers, plant construction and temporary closure of the US / Mexico border at year-
Slide 17: Full Year 2024 Guidance
Full Year 2024 Guidance 17 Metric 4,000 - 4,400 $520 -$572M $32 -$38M 39.0% 52 .5% 74 .1% Railcar Deliveries Revenue Adj. EBITDA1 Target YoY Growth at Midpoint Cars 1. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA due to the inherent difficulty in forecasting and q
Slide 18: Revenue / Capacity and Equity Capital
Revenue / Capacity Strong Revenue Generation with Increased Capacity 5,000+ Annual Railcar Capacity Achieved FY23 revenue of $358M at ~60% capacity Investment Highlights Common Stock 18.3 million Employee Options 0.91 million Public Warrants 12.4 million Fully Diluted Shares Outstanding 31.2 million
Slide 19: Fully Diluted Shares at Various Prices
Common Stock $ 3.85 $ 4.00 $ 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 6.11 6.11 Shares held by Other Shareholders 11.79 11.79 11.79 11.79 11.79 11.79 11.79 11.79 11.79 11.79 Subtotal 17.90 17.90 17.90 17.90 17.90 17.90
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 EBITDA represents earnings before interest, taxes, depreciation and amortization. We believe EBITDA is useful to investors in evaluating our operating performance compared to that of other companies in our industry. In additi
Slide 22: Reconciliation of (Loss) Income Before Taxes to EBITDA and Adjusted EBITDA
Reconciliation of (Loss) Income Before Taxes to EBITDA and Adjusted EBITDA EBITDA represents earnings before interest, taxes, depreciation and amortization. We believe EBITDA is useful to investors in evaluating our operating performance compared to that of other companies in our industry. In additi
Slide 23: Adjustment Footnotes
This adjustment removes the non-cash expense associated with the change in fair market value of warrant liability. Incurred certain restructuring costs related to severance and other costs related to shutdown of the Shoals and Roanoke facilities. During the fourth quarters of 2020, 2021, 2022 and 20
Slide 24: 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 items that affect the comparability of results in past quarters. Adjusted EBI
Slide 25: Thank you!
FREIGHTCAR AMERICA Thank you!
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