American Railcar Industries Inc
American Railcar Industries — Q2 2018 Earnings Presentation
19 slides from American Railcar Industries's earnings presentation, Aug 1, 2018
Slide 1: Q2 2018 Supplemental Information
Exhibit 99.2 Q2 2018 Supplemental Information 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains statements relating to our expected financial performance, objectives, long-term strategies and/or future business prospects, events and plans that are forward-looking statements. Forward-looking statements represent our estimates and assumptions only
Slide 3: Vision and Strategic Drivers
Atl EXCELLENCE # ACCOUNTABILITY TEAMWORK VISION WORLD-CLASS RESULTS To be the best railcar solutions provider in North America! + Safety, Quality, Service + Profitability Preferred Supplier + Employer of Choice STRATEGIC DRIVERS
Slide 4: ARI Successful Diversified Business Model
ARI Successful Manufacturing and Diversified Railcars Components Business Model Railcar Repair Railcar Services Leasing Complete life cycle solutions for the railcar industry 4
Slide 5: Nort Kr
Nort Kr Samia, ON Tenn,
Slide 6: ARI Key Railcar Markets
ARI Key Railcar Markets - Two Largest Product Segments in the Railcar Industry* HOPPER RAILCARS TANK RAILCARS • Product offerings include general service • Product offerings include general service, and specialty carbon steel or stainless steel pressurized, coiled, lined and insulated railcars that
Slide 7: ARI's Railcar Backlog
ARI’s Railcar Backlog 14,000 12,000 11,732 10,000 8,560 8,000 7,060 7,081 6,530 6,000 Total Railcar Backlog Railcar Total 4,240 3,813 4,000 3,387 1,940 2,000 1,050 550 - Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Jun 2018 Railcar backlog for lease - - -
Slide 8: Manufacturing Segment
Manufacturing Segment ManufacturingBroad manufacturing core competency base allows allows ARI ARI to to be be competitive competitive and and provide provide low quality cost, railcarsquality railcarsand components and components (millions) Revenue Operating Margin % ^ • Flexible and labor efficient
Slide 9: Railcar Leasing Segment
Railcar Leasing Segment Diversifying and supplementing our business with revenue streams generated over the life of the railcar (millions) Revenue Lease Fleet • Disciplined lease strategy balancing mix of customers, commodities, acceptable market $160 16,000 rates, and staggered lease terms $140 14,
Slide 10: Railcar Services Segment
Railcar Services Segment SupportingSupporting both both ARI’s ARI’s lease lease fleet fleet and and customers' customers' railcar railcar needs, needs, while while gaining gaining valuable valuable industry industry insight insight Revenue Operating Margin % TRADITIONAL REPAIR (millions) $90 25% • R
Slide 11: Our Financial History
Our Financial History Consolidated Revenue ($ mil) ^ $1,000.0 $889.3 $808.8 $750.6 $800.0 $711.7 $733.0 $639.1 $519.4 $515.9 $600.0 $476.8 $423.4 $400.0 $273.6 $200.0 $0.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q2 2018 ^ Revenues related to railcars built for the Company's lease fleet are
Slide 12: Our Financial History (continued)
Our Financial History (continued) Operational CAPEX ($ mil) $50.0 $42.0 $40.0 $36.6 $30.0 $23.0 $20.0 $22.0 $20.1 $20.0 $15.0 $8.4 $10.0 $6.1 $6.2 $7.2 $0.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q2 2018 TTM Lease Railcar CAPEX ($ mil) # $350.0 $307.7 $300.0 $250.0 $211.6 $185.9 $200.0 $1
Slide 13: Quarterly Financial Comparison
Quarterly Financial Comparison Consolidated Revenue ($ mil) ^ $200.0 $176.2 $167.5 $150.5 $145.0 $146.5 $150.0 $132.4 $120.7 $114.7 $109.0 $116.2 $100.0 $50.0 $0.0 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 ^ Revenues related to railcars built for the Company's l
Slide 14: Quarterly Financial Comparison (continued)
Quarterly Financial Comparison (continued) Operational CAPEX ($ mil) $8.0 $6.7 $7.1 $6.0 $4.4 $4.8 $3.7 $4.0 $2.3 $1.8 $2.0 $1.6 $1.4 $0.8 $0.0 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Lease Railcar CAPEX ($ mil) # $60.0 $55.9 $47.9 $40.0 $36.0 $28.6 $31.4 $20.
Slide 15: Exhibit A – Adj. EBITDA Reconciliation
Exhibit A – Adj. EBITDA Reconciliation In Thousands, unaudited 15
Slide 16: Exhibit A – Adj. EBITDA Reconciliation
Exhibit A – Adj. EBITDA Reconciliation 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 compani
Slide 17: Exhibit B – Impact of 2017 Tax Act Reconciliation
Exhibit B – Impact of 2017 Tax Act Reconciliation In Thousands, except per share amounts, unaudited 17
Slide 18: Exhibit B – Impact of 2017 Tax Act Reconciliation
Exhibit B – Impact of 2017 Tax Act Reconciliation Net earnings excluding tax adjustments represents net earnings before a one-time adjustment related to the impact of the new Tax Cuts and Jobs Act of 2017 (the "2017 Tax Act"). The Company believes that net earnings excluding tax adjustments is a use
Slide 19: A Tradition of Industry Leadership
A Tradition of Industry Leadership
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