Freightcar America, Inc. · NASDAQ:RAIL
Freightcar America — Investor Presentation (January 2024)
22 slides from Freightcar America's investor presentation, Jan 17, 2024
Slide 1: Investor Presentation
Investor Presentation January 2023
Slide 2: Disclosures: Forward-Looking Statements
Disclosures 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 1995. Forward-looki
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 $360M Revenue Up 16% YoY 1. See appendix for reconciliation of non-GAAP measures 3,151 Railcar Deliveries 175K+ Railcars in Service Today LTM as of 9/30/2023 9.5% Gross Ma
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 James R. Meyer Chief Executive Officer Joined FCA in 2017 to transform Company operations Pro
Slide 7: Evolution of Enhanced Earnings Quality
Historical Company: FY19 Restructured FCA: YTD 3Q23 Evolution of Enhanced Earnings Quality 7 ($18,020) Adj. EBITDA1 / Railcar 10,000+ railcar capacity $6,811 Adj. EBITDA / Railcar # Manufacturing Locations 2 manufacturing locations 1 manufacturing location 5,000+ railcar capacity 2,276 railcar deliv
Slide 8: World-Class Manufacturer of Rail Equipment, Executing Strategic Pivot
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 1250 6250 FY20 FY21 FY22 FY23 FY24E Castaños Railcar Capacity | Timing of Ramping Facility Line 4 5000 3750 Line 3 2500 Line 2 Line 1 0 2023 1M completion Sq. ft. 2K employees 5K+ Annual
Slide 10: Vertically-Integrated Facility Driving Significant Margin Improvement
Vertically-Integrated Facility Driving Significant Margin Improvement 10 Early stages of realizing benefits of operational efficiencies: Optimized operational efficiency and cost-effectiveness Proximity to low-cost regional supply base Achieved $6,811 in Adj. EBITDA / Railcar1 at ~50% capacity 1. YT
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 New state-of-the-art campus, 1M sq. ft. complete for start of 2024 Well trained, 2,000-person workforce with commitment to
Slide 13: Financial Overview
Financial Overview
Slide 14: 3Q23 Financial Results
3Q23 Financial Results $1.6 $3.5 3Q22 3Q23 Adjusted EBITDA1 $85.7 $61.9 3Q22 3Q23 Solid quarterly results realizing continued gross margin expansion and positive Adj. EBITDA generation Revenue ($ in millions) Gross Profit $4.6 $9.2 3Q22 3Q23 Revenues of $61.9M, down 28% YoY 503 railcar deliveries in
Slide 15: Historical Financial Performance
Historical Financial Performance $230 $108 $203 $365 2,276 751 1,731 3,184 FY19 FY20 FY21 FY22 ($29.5) ($7.2) $8.4 ($41.0) FY19 FY20 FY21 FY22 Adjusted EBITDA1 ($ in millions) Revenue ($ in millions) / Railcar Deliveries (units) 2020-2022 CAGR Deliveries 62% | Revenue 50% 1. See appendix for reconci
Slide 16: Cash Flow and Key Metrics
($55.4) $11.5 ($58.9) FY20 FY21 FY22 Cash Flow Operating Cash Flow ($ in millions) Key Metrics 3Q231 Improvements driven by operations ramping-up, debt restructuring, and reduced fees of ABL facility 1. For 3Q23 ending 9/30/23 $15.4M Cash $31.1M Total Debt $ 4.0M Capital Expenditures 16
Slide 17: Appendix
Appendix 17
Slide 18: 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 19: 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 20: Adjustment descriptions for Adjusted EBITDA
This adjustment removes the non-cash expense associated with the change in fair market value of warrant liability. The Company incurred certain restructuring costs related to severance and other costs related to its shutdown of the Shoals and Roanoke facilities. During the fourth quarters of 2020, 2
Slide 21: Adjusted EBITDA definition and 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 22: Thank you!
FREIGHTCAR AMERICA Thank you!
FreightCar America — Investor Presentation (January 2024) on 6ix