Freightcar America, Inc. · NASDAQ:RAIL
Freightcar America — Corporate Update (October 2020)
15 slides from Freightcar America's corporate update, Oct 20, 2020
Slide 1: Special Call: Business Repositioning October 2020
Special Call: Business Repositioning October 2020 On October 20, 2020, the following communication was made available at FreightCar America, Inc.’s website (https://investors.freightcaramerica.com/corporate - profile/default.aspx)
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 Forward - Looking Statements This presentation may contain statements relating to our expected financial performance and/or future business prospects, events and plans that are “forward - looking statements” as defined under the Private Securities Litigation Reform Act of 199
Slide 3: Today's Agenda
Today’s Agenda 3 I. Executive Summary II. Overview of Transactions I II . FreightCar America (“FCA”) History & New Competitive Positioning IV. Final Steps & New Investment Thesis On October 20, 2020, the following communication was made available at FreightCar America, Inc.’s website (https://invest
Slide 4: Executive Summary: FCA Vision
Executive Summary: FCA Vision Strategic Business Repositioning to Significantly Enhance Competitive Profile • Closed 2 legacy plants • Closing Cherokee, AL plant (“Shoals”) by February 2021 • Completed acquisition of JV partner’s interest in Castaños, Mexico operation (“Castaños”) • New fixed cost s
Slide 5: Our Path: More Change Still Required
2016 2017 2018 2019 ($ 1 5 ) $5 $ 25 $ 45 Our Path: More Change Still Required 2017 - 2019 2020 Q4’17 Laun c he s “Back to Ba s i cs ”(B2B) Operational Excellence Program Q2’18 Sells Danville, IL production facility Q2’19 Announces closure of Roanoke Facility by end of 2019 . Q3’19 Announces 50/50 j
Slide 6: Overview of Transactions
Overview of Transactions Two Strategic Transactions to Transform the Company and its Growth Strategy 1 Castaños, Mexico Joint Venture Acquisition Structure Purchase Agreement Rationale Gives FCA full control of the newest purpose - built manufacturing plant in North America Pricing Gil Family (the o
Slide 7: Iconic Brand and Industry Pioneer
Iconic Brand and Industry Pioneer FCA has been a premier railcar manufacturer and aftermarket parts supplier to the North American railcar industry for 119 years Company Summary • Founded in 1901 and headquartered in Chicago, IL • Deep railcar engineering and design expertise • 160,000+ FCA railcars
Slide 8: Transition to Mexico
Transition to Mexico Transition will deliver an additional $25 million in fixed cost savings annually, plus significant labor and overhead reductions Facility Designed Specific to FCA’s Business Needs Financial & Strategic Rationale • Leased manufacturing space with 2 production lines and Paint Shop
Slide 9: New low-cost footprint lowers breakeven railcar volumes
0 1,0 0 0 2,0 0 0 3,0 0 0 4,0 0 0 5,0 0 0 New low - cost footprint will enable FCA to generate positive EBITDA at annual railcar volumes of less than 2,000 railcars 6,000 Historical 20 1 9 20 2 1+ Breakeven Levels (per year) Breakeven at Significantly Lower Volumes ▪ Product Redesigns ▪ Closed Danvi
Slide 10: FCA Railcar Portfolio
FCA Railcar Portfolio FCA’s new facility in Mexico will allow the Company to fully compete across its full, diverse product portfolio Box Cars Pulp & Paper, Food Grain Cars Farm Products Coal Con v ers i ons - Legacy Expertise - Coil Cars Finished Steel Coils Non - I nter m o d al Flat Cars Lumber &
Slide 11: Why Does FCA Need Capital Today?
26 35 53 61 58 50 76 75 56 34 18 32 46 69 75 63 60 22 17 47 59 53 67 82 62 45 51 58 31 21 44 90 80 70 60 50 40 30 20 10 0 Annual Rail Car Deliveries Historical Average To remake the Company & build a true growth engine to drive long - term value To leverage next upcycle and be better positioned for
Slide 12: Capital Summary: Sources & Uses of Cash
Capital Summary: Sources & Uses of Cash Cash as of September 30, 2020 $33.9 New asset - backed credit facility $20.0 New senior secured term loan $40.0 Potential available liquidity ~ $90 million ($ in millions) Sources of Capital • Shoals Closing Costs (by end Q1’21) • Castaños Facility 3 rd and 4
Slide 13: Virtual Special Meeting of Stockholders and Steps to Complete
Virtual Special Meeting of Stockholders to be held: 13 Late November 2020 (Proxy Information to be mailed soon) Steps to Complete the Process in 2020 • Complete last orders at Shoals manufacturing facility in Alabama and close plant by the end of February 2021 • Receive official AAR certification do
Slide 14: FCA's New Investment Thesis
FCA’s New Investment Thesis • 119 - year - old brand, 160K+ cars in North American fleet, fundamental part of U.S. industrial commerce • Product engineering leadership in multiple car types, high barriers to entry • Customers desire/value credible competition to larger competitors • Uniquely positio
Slide 15: IR Contacts: Alpha IR Group
IR Contacts: Alpha IR Group Joe Caminiti or Elizabeth Steckel 312 - 445 - 2870 RAIL@alpha - ir.com On October 20, 2020, the following communication was made available at FreightCar America, Inc.’s website (https://investors.freightcaramerica.com/corporate - profile/default.aspx)