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Section 1: 8-K (FORM 8-K)

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________

Form 8-K
_____________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): May 1, 2019  

FREIGHTCAR AMERICA, INC.
(Exact Name of Registrant as Specified in Charter)

Delaware000-5123725-1837219
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification Number)

 

Two North Riverside Plaza, Suite 1300, Chicago, Illinois 60606
(Address of Principal Executive Offices) (Zip Code)

(800) 458-2235
(Registrant's telephone number, including area code)

N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 [   ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 [   ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 [   ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 [   ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [   ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [   ]

 
 

Section 2 — Financial Information

Item 2.02. Results of Operations and Financial Condition.

On May 1, 2019, FreightCar America, Inc. issued a press release announcing its financial results for the first quarter of 2019. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information contained in Exhibit 99.1 is being furnished under Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Section 9 — Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit 99.1 Press release of FreightCar America, Inc., dated May 1, 2019.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 FREIGHTCAR AMERICA, INC.
   
  
Date: May 1, 2019By: /s/ Christopher J. Eppel        
  Christopher J. Eppel
  Vice President, Finance, Chief Financial Officer and Treasurer
  


EXHIBIT INDEX

 

Exhibit Number Description
   
Exhibit 99.1 Press release of FreightCar America, Inc., dated May 1, 2019.



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Section 2: EX-99.1 (PRESS RELEASE)

EdgarFiling

EXHIBIT 99.1

FreightCar America, Inc. Reports First Quarter 2019 Results

Company continues to execute its ‘Back to Basics’ initiatives; reaffirms full-year delivery and material cost 
savings guidance; product development now a top priority

CHICAGO, May 01, 2019 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ: RAIL) today reported results for the first quarter ended March 31, 2019.

Business Highlights

"We have made tremendous progress on our strategic initiatives to revamp our operations and reduce material and labor costs. As this work continues, we are also now accelerating efforts to strengthen our product portfolio to better align with market needs and drive top-line growth,” said Jim Meyer, President and Chief Executive Officer of FreightCar America. "Our results were in line with our expectations for the quarter and as we have said previously, our goal is to be substantially retooled as a company within the year and to have FreightCar America well positioned for long-term growth and success, beginning in 2020.”

First Quarter Results

First Quarter 2019 Conference Call & Webcast Information

The Company will host a conference call and live webcast on Thursday, May 2, 2019 at 11:00 a.m. (Eastern Daylight Time) to discuss the Company’s first quarter 2019 financial results. To participate in the conference call, please dial (800) 288-8960, Confirmation Number 466777.  Interested parties are asked to dial in approximately 10 to 15 minutes prior to the start time of the call. The live audio-only webcast can be accessed at:

Event URL: https://im.csgsystems.com/cgi-bin/confCast

Conference ID#: 466777

If you need technical assistance, call the toll-free AT&T Conference Casting Support Help Line at (888) 793-6118. Please note that the webcast is listen-only and webcast participants will not be able to participate in the question and answer portion of the conference call.  An audio replay of the conference call will be available beginning at 1:00 p.m. (Eastern Daylight Time) on May 2, 2019 until 11:59 p.m. (Eastern Daylight Time) on June 2, 2019.  To access the replay, please dial (800) 475-6701.  The replay pass code is 466777.  An audio replay of the call will be available on the Company’s website within two days following the earnings call.

About FreightCar America, Inc.

FreightCar America, Inc. manufactures a wide range of railroad freight cars, supplies railcar parts and leases freight cars through its JAIX Leasing Company subsidiary. FreightCar America designs and builds high-quality railcars, including coal cars, bulk commodity cars, covered hopper cars, intermodal and non-intermodal flat cars, mill gondola cars, coil steel cars and boxcars. It is headquartered in Chicago, Illinois and has facilities in the following locations: Cherokee, Alabama; Grand Island, Nebraska; Johnstown, Pennsylvania; Roanoke, Virginia; and Shanghai, People’s Republic of China. More information about FreightCar America is available on its website at www.freightcaramerica.com.

Forward Looking Statements

This press release 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-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. These potential risks and uncertainties include, among other things: risks relating to the Shoals facility, including the facility not meeting internal assumptions or expectations and unforeseen liabilities from Navistar; the cyclical nature of our business; adverse economic and market conditions; fluctuating costs of raw materials, including steel and aluminum, and delays in the delivery of raw materials; our ability to maintain relationships with our suppliers of railcar components; our reliance upon a small number of customers that represent a large percentage of our sales; the variable purchase patterns of our customers and the timing of completion, delivery and customer acceptance of orders; the highly competitive nature of our industry; the risk of lack of acceptance of our new railcar offerings by our customers; and other competitive factors. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.

FreightCar America, Inc.
Condensed Consolidated Balance Sheets 
(Unaudited)
   
 March 31,December 31,
 20192018
 (In thousands)
Assets  
Current assets  
Cash, cash equivalents and restricted cash equivalents$65,000 $45,070 
Restricted certificates of deposit 1,668  4,952 
Marketable securities 1,998  18,019 
Accounts receivable, net 9,290  18,218 
Inventories, net 52,700  64,562 
Other current assets 7,373  5,012 
Total current assets 138,029  155,833 
   
Property, plant and equipment, net 43,406  45,317 
Railcars available for lease, net 64,370  64,755 
Right of use asset 74,174  - 
Goodwill 21,521  21,521 
Other long-term assets 2,583  2,311 
Total assets$344,083 $289,737 
   

Liabilities and Stockholders’ Equity
  
Current liabilities  
Accounts and contractual payables$30,586 $34,749 
Accrued payroll and other employee costs 1,998  1,639 
Reserve for workers’ compensation 3,527  3,344 
Accrued warranty 11,045  9,309 
Customer deposits 1,281  3,000 
Deferred income state and local incentives, current 2,219  2,219 
Deferred rent, current -  6,466 
Lease liability, current 16,840  - 
Other current liabilities 1,325  1,324 
Total current liabilities 68,821  62,050 
Accrued pension costs 5,752  5,841 
Accrued postretirement benefits, less current portion 4,907  4,975 
Deferred income state and local incentives, long-term 6,387  6,941 
Deferred rent, long-term -  15,519 
Lease liability, long-term 77,281  - 
Accrued taxes and other long-term liabilities 476  801 
Total liabilities 163,624  96,127 
   
Stockholders’ equity  
Preferred stock    
Common stock 127  127 
Additional paid in capital 86,074  90,593 
Treasury stock, at cost (4,572) (9,721)
Accumulated other comprehensive loss (8,145) (8,188)
Retained earnings 106,975  120,799 
       
Total stockholders’ equity 180,459  193,610 
Total liabilities and stockholders’ equity$344,083 $289,737 
       


FreightCar America, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
   
  Three Months Ended
March 31,
  20192018
  (In thousands, except for share
and per 
share data)
    
Revenues $70,708  $82,973 
Cost of sales  77,557   83,569 
Gross loss  (6,849)  (596)
Selling, general and administrative expenses  7,667   7,996 
Restructuring and impairment charges      
Operating loss  (14,516)  (8,592)
    
Interest expense and deferred financing costs  (36)  (32)
Other income (expense)  319   381 
Loss before income taxes  (14,233)  (8,243)
Income tax (benefit) provision  (201)  (1,839)
Net loss $(14,032) $(6,404)
    
Net loss per common share – basic $(1.12) $(0.51)
    
Net loss per common share – diluted $(1.12) $(0.51)
    
Weighted average common shares outstanding -   
basic  12,337,013   12,306,011 
    
Weighted average common shares outstanding -   
diluted  12,337,013   12,306,011 
    
Dividends declared per common share $  $ 
    


FreightCar America, Inc.
Segment Data
(Unaudited)
   
  Three Months Ended
March 31,
  20192018
  (In thousands)
Revenues:   
Manufacturing $67,595  $79,733 
Corporate and Other  3,113   3,240 
Consolidated revenues $70,708  $82,973 
    
Operating loss:   
Manufacturing $(9,637) $(3,816)
Corporate and Other  (4,879)  (4,776)
Consolidated operating loss $(14,516) $(8,592)
         


FreightCar America, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
  
 Three Months Ended
March 31,
 2019 2018
 (In thousands)
Cash flows from operating activities  
   
Net loss$(14,032) $(6,404)
Adjustments to reconcile net loss to net cash
flows provided by (used in) operating activities:
  
Net proceeds from Shoals transaction    2,655 
Depreciation and amortization 3,206   2,550 
Amortization expense – right-of-use leased assets 3,202    
Recognition of deferred income from state and local incentives (554)  (555)
Deferred income taxes    (1,992)
Stock-based compensation recognized 689   836 
Other non-cash items, net (736)  273 
Changes in operating assets and liabilities, net of acquisitions:  
Accounts receivable 8,928   (5,330)
Inventories 12,591   1,930 
Inventories on lease    (9,186)
Other assets (2,355)  (3,323)
Accounts and contractual payables (4,516)  2,284 
Accrued payroll and employee benefits 359   338 
Income taxes receivable/payable (200)  650 
Accrued warranty 1,736   979 
Lease liability (5,037)   
Other liabilities (1,460)  1,223 
Accrued pension costs and accrued postretirement benefits (114)  (418)
Net cash flows provided by (used in) operating activities 1,707   (13,490)
   
Cash flows from investing activities  
   
Purchase of restricted certificates of deposit (1,117)  (1,040)
Maturity of restricted certificates of deposit 4,400   1,308 
Purchase of securities held to maturity (1,986)  (41,244)
Proceeds from maturity of securities 18,025   32,005 
Purchases of property, plant and equipment (760)  (182)
Proceeds from sale of property, plant and equipment and railcars available for lease    228 
Net cash flows provided by (used in) investing activities 18,562   (8,925)
   
Cash flows from financing activities  
   
Employee stock settlement (59)  (118)
Deferred financing costs (280)   
Net cash flows used in financing activities (339)  (118)
   
Net decrease in cash and cash equivalents$(19,930) $(22,533)
Cash, cash equivalents and restricted cash equivalents at beginning of period$45,070  $87,788 
Cash, cash equivalents and restricted cash equivalents at end of period$65,000  $65,255 


INVESTOR & MEDIA CONTACTChristopher J. Eppel
TELEPHONE(800) 458-2235

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