FreightCar America, Inc. (NASDAQ:RAIL) Q1 2022 Earnings Conference Call May 10, 2022 11:00 AM ET Company Participants Lisa Fortuna - Investor James Meyer - President, CEO & Director Michael Riordan - VP, Finance, CFO & Treasurer Matthew Tonn - Chief Commercial Officer Conference Call Participants George Sellers - Stephens Inc. Matthew Elkott - Cowen and Company Operator Greetings, and welcome to FreightCar America's First Quarter Fiscal 2022 Conference Call. [Operator Instructions]. I would now like to turn ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly period ended March 31, 2022 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 000-51237 FREIGHTCAR AMERICA, INC. (Exact name of registrant as specified in its charter) Delaware 25-1837219 (State or other jurisdiction of incorporation or organization) (I.R.S. ...

Financial Data and Key Metrics Changes - Revenue for Q4 2021 was $75 million, up 23.8% year-over-year from $60.6 million in Q4 2020 and $58.3 million in Q3 2021 [17] - Gross margin for Q4 2021 was $6.6 million, significantly higher than $1.5 million in Q3 2021 and $5.5 million in Q4 2020, marking the fifth consecutive quarter of positive gross margin [18] - Operating income for Q4 2021 was $63,000, a recovery from operating losses of $4.2 million in Q3 2021 and $9.2 million in Q4 2020 [19] Business Line Data and Key Metrics Changes - The company delivered 604 rail cars in Q4 2021, compared to 477 in Q4 2020 and 505 in Q3 2021, indicating improved manufacturing capabilities [11][17] - Manufacturing operating income for Q4 2021 was $4.9 million, up from $0.2 million in Q3 2021 and a loss of $2.1 million in Q4 2020 [20] Market Data and Key Metrics Changes - Railcar orders booked in Q4 2021 were 1,032, a significant increase from 90 in Q4 2020, indicating strong demand recovery [31] - The rail industry is experiencing improved fundamentals, with railcar scrapping rates outpacing deliveries, leading to a strengthening demand cycle [29] Company Strategy and Development Direction - The company has completed the transition of manufacturing operations to Castaños, resulting in approximately $20 million in annual fixed cost savings [11] - Future plans include expanding the Castaños facility and entering the tank car market, with expectations to double production capacity to 4,000-5,000 units per year by 2023 [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth, anticipating 2022 to be a year of strong performance despite inflationary challenges [15] - The demand environment is strengthening, with expectations of ongoing recovery in the railcar market supported by increased traffic and reduced storage [13] Other Important Information - The company achieved positive adjusted EBITDA of $1.2 million in Q4 2021 [23] - Cash and cash equivalents at the end of Q4 2021 were $26.2 million, slightly down from $27.5 million at the end of Q3 2021 [24] Q&A Session Summary Question: Inquiry levels improving year-over-year - Management confirmed that inquiry levels have improved from quarter-to-quarter, with increased order activity expected in Q1 2022 [38] Question: Revenue per rail car increase - The increase in revenue per rail car was attributed to product mix and efficiencies in the plant rather than a sudden change in pricing dynamics [40][41] Question: Cadence of deliveries for 2022 - Management indicated that while the trend is upward, specific quarter-by-quarter delivery guidance would be clearer in future calls [53] Question: Orders source and demand - Orders are coming from a mix of shippers, railroads, and lessors, with demand extending into future years [57] Question: Shortages in specific car types - Demand for boxcars, mill gondolas, and certain flat cars is high, indicating a shortage in supply [60] Question: Long-term demand from the automotive industry - Management acknowledged potential increased demand for automotive cars as the industry recovers from semiconductor shortages [64] Question: Utilization rates improvement - Management speculated that utilization rates could improve further, potentially reaching the high 80s by the end of the year [66]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Exact name of registrant as specified in its charter) Delaware 25-1837219 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 125 S. Wacker Drive, Suite 1500, Chicago, Illinois 60606 (Address of principal executive offices) (Zip Code) (800) 458-2235 FORM 10-K (Registrant's telephone number, including area code) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT ...

FreightCar America, Inc. (NASDAQ:RAIL) Q3 2021 Earnings Conference Call November 15, 2021 11:00 AM ET Company Participants Lisa Fortuna - Investor Relations Jim Meyer - President and Chief Executive Officer Terry Rogers - Chief Financial Officer Matt Tonn - Chief Commercial Officer Conference Call Participants Justin Long - Stephens Matt Elkott - Cowen Operator Greetings. Welcome to the FreightCar America’s Third Quarter 2021 Conference Call. [Operator Instructions] Please note this conference is being reco ...

Financial Performance - Total revenues for the three months ended September 30, 2021, were $58.3 million, a significant increase from $25.2 million in the same period of 2020, representing a growth of 131.5%[13] - The company reported a net income of $731,000 for the three months ended September 30, 2021, compared to a net loss of $41.3 million in the same period of 2020[13] - For the nine months ended September 30, 2021, FreightCar America reported a net loss of $42,612 thousand, an improvement from a net loss of $71,456 thousand for the same period in 2020, representing a 40.5% reduction in losses[24] - Total revenues for the nine months ended September 30, 2021, were $128,031 thousand, a significant increase of 68.5% compared to $47,857 thousand for the same period in 2020[33] - The company reported a comprehensive income of $886,000 for the three months ended September 30, 2021, compared to a comprehensive loss of $41.2 million in the same period of 2020[16] Profitability and Losses - Gross profit for the nine months ended September 30, 2021, was $4.9 million, compared to a gross loss of $19.0 million for the same period in 2020, indicating a turnaround in profitability[13] - The accumulated deficit increased to $81.2 million as of September 30, 2021, from $38.6 million as of December 31, 2020, highlighting ongoing challenges in achieving sustained profitability[11] - The consolidated operating loss for the three months ended September 30, 2021, was $4,163, significantly improved from a loss of $41,340 in the same period of 2020[39] Assets and Liabilities - Total assets increased to $184.1 million as of September 30, 2021, up from $182.7 million as of December 31, 2020[11] - Current liabilities decreased to $62.7 million as of September 30, 2021, from $71.1 million as of December 31, 2020, reflecting improved liquidity management[11] - The company’s long-term debt increased to $70.7 million as of September 30, 2021, compared to $37.7 million as of December 31, 2020, indicating a strategic shift in financing[11] - The total debt as of September 30, 2021, was $91,239, an increase from $66,979 as of December 31, 2020, reflecting a growth of approximately 36.3%[89] Cash Flow and Expenses - The company experienced a net cash flow used in operating activities of $56,958 thousand for the nine months ended September 30, 2021, compared to $38,981 thousand for the same period in 2020, reflecting a 46.1% increase in cash outflow[24] - Selling, general and administrative expenses for the nine months ended September 30, 2021, were $21.1 million, slightly up from $21.1 million in the same period of 2020, indicating stable operational costs[13] - The company incurred restructuring and impairment charges of $6,530 thousand for the nine months ended September 30, 2021, compared to $26,868 thousand for the same period in 2020, reflecting a 75.7% decrease[24] Shareholder Information - The weighted average common shares outstanding for the three months ended September 30, 2021, were 20,485,438, compared to 12,426,872 for the same period in 2020, reflecting an increase in share issuance[13] - The Company computed diluted earnings per share for Q3 2021 using 22.112 million weighted average common shares outstanding[106] Production and Operations - The company has moved all production to its Castaños facility as of March 2021, following the acquisition of a joint venture partner's interest in the operation[28] - Total inventories as of September 30, 2021, were $44,635, up from $38,831 as of December 31, 2020, indicating a 15.5% increase[48] Debt and Financing - The principal amount of the term loan credit facility was increased by $16,000 to a total of $56,000, with the additional loan funded on May 17, 2021[52] - The interest rate on outstanding debt under the Amended and Restated Loan and Security Agreement was 5.26% as of September 30, 2021[75] - The company recognized a gain on extinguishment of debt of $10,129 related to PPP Loan forgiveness during the third quarter of 2021[79] Legal and Compliance - The Company has reserved $0.5 million for probable and estimable liabilities related to pending legal proceedings[105] - The Company paid a total of $7.500 million to settle claims from a commercial dispute, with $1.000 million paid during the nine months ended September 30, 2021[104]

PART I – FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents FreightCar America, Inc.'s unaudited condensed consolidated financial statements for Q2 and H1 2021, including balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$170.1 million** by June 30, 2021, while total liabilities increased to **$179.5 million**, resulting in a **$9.4 million** stockholders' deficit, primarily due to warrant liability growth Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2021 (in thousands) | December 31, 2020 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$170,058** | **$182,742** | | Cash, cash equivalents and restricted cash | $20,730 | $54,047 | | Inventories, net | $48,783 | $38,831 | | **Total Liabilities** | **$179,496** | **$152,245** | | Total long-term debt (net) | $68,705 | $55,273 | | Warrant liability | $31,406 | $12,730 | | **Total Stockholders' (Deficit) Equity** | **($9,438)** | **$30,497** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2021 revenues more than doubled to **$37.4 million**, achieving a **$3.6 million** gross profit and narrowing net loss to **$2.6 million**, while H1 2021 saw tripled revenues but a higher net loss of **$40.4 million** due to warrant liability changes Statement of Operations Highlights (in thousands, except per share data) | Metric | Q2 2021 (in thousands) | Q2 2020 (in thousands) | YTD 2021 (in thousands) | YTD 2020 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Revenues | $37,354 | $17,458 | $69,724 | $22,655 | | Gross Profit (Loss) | $3,638 | ($6,144) | $6,228 | ($14,947) | | Operating Loss | ($2,536) | ($12,948) | ($15,747) | ($30,041) | | Net Loss Attributable to FreightCar America | ($2,570) | ($12,791) | ($40,428) | ($29,738) | | Net Loss Per Share (basic & diluted) | ($0.13) | ($0.97) | ($2.01) | ($2.26) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities significantly increased to **$44.1 million** for H1 2021, driven by higher net loss and working capital changes, resulting in a **$33.3 million** net decrease in cash and cash equivalents Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2021 (in thousands) | 2020 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | ($44,109) | ($20,783) | | Net cash used in investing activities | ($818) | ($6,925) | | Net cash provided by financing activities | $11,610 | $9,991 | | **Net decrease in cash and cash equivalents** | **($33,317)** | **($17,717)** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue recognition, debt financing, restructuring, the **$10 million** PPP loan forgiveness, and a revision of prior period financial statements due to inventory accounting errors - The company has consolidated all its production into its Castaños, Mexico facility as of March 2021, after closing its Shoals, Alabama facility in February 2021 and its Roanoke, Virginia facility in 2020[27](index=27&type=chunk)[28](index=28&type=chunk) Revenue by Source for Six Months Ended June 30 (in thousands) | Revenue Source | 2021 (in thousands) | 2020 (in thousands) | | :--- | :--- | :--- | | Railcar sales | $63,300 | $15,272 | | Parts sales | $4,496 | $4,510 | | Leasing revenues | $1,890 | $2,872 | | **Total revenues** | **$69,724** | **$22,655** | Total Debt Summary (in thousands) | Debt Instrument | June 30, 2021 (in thousands) | December 31, 2020 (in thousands) | | :--- | :--- | :--- | | M&T Credit Agreement | $10,518 | $10,105 | | SBA PPP Loan | $10,000 | $10,000 | | Siena Loan Agreement | $2,613 | $6,874 | | Term Loan Credit Agreement | $56,552 | $40,000 | | **Total debt, net of discount/costs** | **$68,705** | **$55,273** | - Subsequent to the quarter end, on July 14, 2021, the company received full forgiveness for its **$10.0 million** SBA Paycheck Protection Program (PPP) Loan, which will be recognized in Q3 2021[103](index=103&type=chunk) - The company revised its Q1 2021 financial statements to correct immaterial errors related to inventory transactions, which increased gross profit by **$0.8 million** and reduced net loss by **$0.5 million** for that period[115](index=115&type=chunk)[117](index=117&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses improved financial performance, increased revenues, and gross profit driven by higher railcar deliveries and restructuring, alongside the operational shift to Mexico, growing order backlog, and financing activities [Overview](index=33&type=section&id=Overview) The company completed manufacturing consolidation in Castaños, Mexico by March 2021, leading to a significant increase in new orders to **1,433 units** and a backlog of **2,200 units** valued at **$224 million** - All production was moved to the Castaños, Mexico facility as of March 2021, following the closure of the Shoals, AL facility in February 2021[122](index=122&type=chunk)[123](index=123&type=chunk) Order and Backlog Summary | Metric | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Total Backlog (units) | 2,200 | 1,389 | | Estimated Backlog Value | $224 million | $146 million | - New orders for the first six months of 2021 were **1,433 units** (800 new, 633 rebuilt), compared to **300 rebuilt units** in the same period of 2020, indicating market improvement[124](index=124&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) H1 2021 results improved significantly, with Q2 revenues more than doubling to **$37.4 million** and achieving a **$3.6 million** gross profit, while H1 revenues tripled to **$69.7 million**, though net loss increased due to non-cash warrant liability charges Q2 2021 vs Q2 2020 Performance (in millions) | Metric | Q2 2021 (in millions) | Q2 2020 (in millions) | Change (in millions) | | :--- | :--- | :--- | :--- | | Revenues | $37.4 | $17.5 | +$19.9 | | Gross Profit (Loss) | $3.6 | ($6.1) | +$9.7 | | Operating Loss | ($2.5) | ($12.9) | +$10.4 | | Net Loss | ($2.6) | ($12.8) | +$10.2 | | Railcar Deliveries (units) | 313 | 100 | +213 | YTD 2021 vs YTD 2020 Performance (in millions) | Metric | YTD 2021 (in millions) | YTD 2020 (in millions) | Change (in millions) | | :--- | :--- | :--- | :--- | | Revenues | $69.7 | $22.7 | +$47.0 | | Gross Profit (Loss) | $6.2 | ($14.9) | +$21.1 | | Operating Loss | ($15.7) | ($30.0) | +$14.3 | | Net Loss | ($40.4) | ($29.7) | -$10.7 | | Railcar Deliveries (units) | 622 | 111 | +511 | - Restructuring and impairment charges for the six months ended June 30, 2021 were **$6.5 million**, primarily related to relocating equipment from the closed Shoals facility to Castaños[138](index=138&type=chunk)[139](index=139&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) Primary liquidity sources include cash and credit facilities, with the Term Loan increasing by **$16.0 million** and the **$10.0 million** PPP loan forgiven, while net cash used in operating activities was **$44.1 million** for H1 2021 - The company's **$10.0 million** PPP Loan was fully forgiven on July 14, 2021, subsequent to the reporting period[148](index=148&type=chunk) - On May 14, 2021, the Term Loan Credit Agreement was amended to increase the principal amount by **$16.0 million** to a total of **$56.0 million**[162](index=162&type=chunk) - Subsequent to quarter end, on July 30, 2021, the Siena Loan Agreement was amended, increasing the maximum revolving facility amount from **$20.0 million** to **$25.0 million**[155](index=155&type=chunk)[156](index=156&type=chunk) Cash Flow Summary for Six Months Ended June 30 (in millions) | Activity | 2021 (in millions) | 2020 (in millions) | | :--- | :--- | :--- | | Net cash used in operating activities | ($44.1) | ($20.8) | | Net cash used in investing activities | ($0.8) | ($6.9) | | Net cash provided by financing activities | $11.6 | $10.0 | - Capital expenditures for 2021 are anticipated to be in the range of **$2 million to $3 million**, primarily for the Mexico facility[190](index=190&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2021, with no material changes to internal control over financial reporting during Q2 - The Chief Executive Officer and Principal Financial Officer concluded that as of the evaluation date, the company's disclosure controls and procedures were effective[192](index=192&type=chunk) - No changes in internal control over financial reporting occurred during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, internal controls[193](index=193&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is provided in Note 12 to the condensed consolidated financial statements - The company refers to Note 12 – Contingencies for information on legal proceedings[196](index=196&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[197](index=197&type=chunk) [Defaults Upon Senior Securities](index=50&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[198](index=198&type=chunk) [Mine Safety Disclosures](index=50&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[199](index=199&type=chunk) [Other Information](index=50&type=section&id=Item%205.%20Other%20Information) The company reported no other information - None[200](index=200&type=chunk) [Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including an amendment to the Term Loan Credit Agreement, officer certifications required by the Sarbanes-Oxley Act, and Inline XBRL documents - Exhibits filed include Amendment No. 2 to the Term Loan Credit Agreement, CEO and CFO certifications (Sections 302 and 906), and various XBRL files[203](index=203&type=chunk) [Signatures](index=51&type=section&id=Signatures)

FreightCar America, Inc. (NASDAQ:RAIL) Q2 2021 Earnings Conference Call August 16, 2021 11:00 AM ET Company Participants Lisa Fortuna - IR James Meyer - President and CEO Terence Rogers - CFO Matthew Tonn - Chief Commercial Officer Conference Call Participants Justin Long - Stephen Inc Operator Greetings. Welcome to FreightCar America's Second Quarter 2021 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator I ...

FreightCar America, Inc. (NASDAQ:RAIL) Q1 2021 Earnings Conference Call May 17, 2021 11:00 AM ET Company Participants Lisa Fortuna - IR James Meyer - President and CEO Terence Rogers - CFO Matthew Tonn - Chief Commercial Officer Conference Call Participants Justin Long - Stephens Matthew Elkott - Cowen Bascome Majors - Susquehanna Financial Group Operator Greetings, and welcome to FreightCar America's First Quarter 2021 Conference Call. At this time, all participants are in a listen-only mode. A question-an ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly period ended March 31, 2021 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 000-51237 FREIGHTCAR AMERICA, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identifica ...