Freightcar America, Inc. · NASDAQ:RAIL
Freightcar America — Q2 2024 Earnings Presentation
26 slides from Freightcar America's earnings presentation, Aug 12, 2024
Slide 1: Investor Presentation August 2024
Investor Presentation August 2024
Slide 2: Disclosures: Forward-Looking Statements
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: Storied History of Success with Runway for Growth
Storied History of Success with Runway for Growth 120-year Distinguished Legacy Industry Leading Pure Play Manufacturer of High-Quality Freight Railcars 2020 – 2024 Product, Footprint and Cost Transformation 1900s – 2000s Established Leadership Capturing Coal Car Demand 2010s – 2020s Pivot to a New
Slide 5: Business Model Built to Achieve Profitable Growth
Business Model Built to Achieve Profitable Growth $497M Revenue Up 29.3% YoY 1. See appendix for reconciliation of non-GAAP measures 3,906 Railcar Deliveries 175K+ Railcars in Service Today LTM as of 6/30/2024 10.3% Gross Margin Up 260 bps YoY 5,000+ Capacity $7,212 Adj. EBITDA1 / Railcar Up 91% YoY
Slide 6: Well Positioned Within Addressable Market
40K Units per Year Well Positioned Within Addressable Market Railcar Market Diverse product offering reducing cyclicality across portfolio, serving 60% of the railcar market with room to expand another 20% into tank cars Increased production Lower commodity price volatility Heightened replacement de
Slide 7: Diverse Product Portfolio Catering to a Strong Customer Base
Diverse Product Portfolio Catering to a Strong Customer Base Gondolas Flat Cars Conversions & Modifications Leading railroad, lessors, and shippers based in North America with an average tenure of 20+ Years VersaCoil – Coil Steel Gondolas Covered Hoppers Hoppers Mill Gondolas Woodchip Gondolas High-
Slide 8: 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 9: World-Class Manufacturer of Rail Equipment
WORLD-CLASS MANUFACTURER OF RAIL EQUIPMENT, GENERATING INDUSTRY LEADING MARGINS WITH SIGNIFICANT OPPORTUNITY FOR FURTHER EXPANSION Completed Transformation Driving Profitable Growth Minimized fixed costs to provide agility during cyclical downturns Breakeven Adj. EBITDA at extremely low volumes1 Fas
Slide 10: Premier Manufacturing Campus Castaños, Mexico
Premier Manufacturing Campus Castaños, Mexico Facility: Plant designed for efficient future expansion Castaños Railcar Capacity | Timing of Facility Expansion Line 4 Line 3 Line 2 Line 1 0.7M 2K 5K+ Sq. ft. employees Annual car capacity 2023 completion 4 Production lines Vertically integrated paint,
Slide 11: Vertically-Integrated Facility Driving Significant Margin Improvement
Vertically-Integrated Facility Driving Significant Margin Improvement Optimized operational efficiency and cost-effectiveness 11 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 12: 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 13: Pillars for Value Creation
Obtain a new working capital facility aligned with current business profile at lower cost Pillars for Value Creation GROWTH STRATEGY With continued profitability growth, FCA is positioned to recapitalize its debt structure Completed new state-of-the-art 0.7M ft2 campus Well trained, 2,000-person wor
Slide 14: Financial Overview
Financial Overview
Slide 15: 2Q24 Financial Results
2Q24 Financial Results Adjusted EBITDA1 Strong quarterly results realizing strong revenue growth with record profitability and orders at new facility 15 Revenue ($ in millions) Gross Profit See appendix for reconciliation of non-GAAP measures Revenues of $147.4M, up 66.4% YoY 1,159 railcar deliverie
Slide 16: Historical Financial Performance
Historical Financial Performance Adjusted EBITDA2 ($ in millions) 16 1. Reflects midpoint of FY24 guidance as of 8/12/2024 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 17: 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 17 1 1. Reflects product changeovers, plant construction and temporary closure of the US / Mexico border at year-
Slide 18: Raised Full Year 2024 Guidance
Raised Full Year 2024 Guidance 18 Metric 4,300 - 4,700 $560 -$600M $35 -$39M 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 quantifying th
Slide 19: 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 18.9 million Employee Options 0.7 million Public Warrants 13.8 million Fully Diluted Shares Outstanding 33.4 million
Slide 20: Appendix
Appendix
Slide 21: Common Stock and Dilutive Securities
Common Stock $ 3.49 $ 4.00 $ 4.50 $ 5.50 $ 6.50 $ 7.50 $ 8.50 $ 10.00 $ 15.00 $ 20.00 Shares held by Affiliates 6.47 6.47 6.47 6.47 6.47 6.47 6.47 6.47 6.47 6.47 Shares held by Other Shareholders 12.40 12.40 12.40 12.40 12.40 12.40 12.40 12.40 12.40 12.40 Subtotal 18.87 18.87 18.87 18.87 18.87 18.87
Slide 22: Reconciliation of Income (Loss) Before Taxes to EBITDA and Adjusted EBITDA
Reconciliation of Income (Loss) 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: Reconciliation of Loss Before Taxes to EBITDA and Adjusted EBITDA
Reconciliation of Loss 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 addition, our m
Slide 24: Adjustment Notes
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 25: Adjusted EBITDA Reconciliation
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 26: Thank you!
FREIGHTCAR AMERICA Thank you!