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


Washington, D.C. 20549

Form 8-K


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

Date of Report (Date of earliest event Reported): August 10, 2020  

(Exact Name of Registrant as Specified in Charter)

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


125 S. Wacker Drive, Suite 1500, Chicago, Illinois 60606
(Address of Principal Executive Offices) (Zip Code)

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

(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))


Securities registered pursuant to Section 12(b) of the Act:


Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.01 per shareRAILNasdaq Global Market


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 August 10, 2020, FreightCar America, Inc. issued a press release announcing its financial results for the second quarter of 2020. 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 August 10, 2020.


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.

Date: August 10, 2020By: /s/ Christopher J. Eppel        
  Christopher J. Eppel
  Vice President, Finance, Chief Financial Officer and Treasurer



Exhibit Number Description
Exhibit 99.1 Press release of FreightCar America, Inc., dated August 10, 2020.

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Section 2: EX-99.1 (PRESS RELEASE)



FreightCar America, Inc. Reports Second Quarter 2020 Results

Provides second half fiscal 2020 outlook to deliver 750 to 1,000 railcars

Announces start of production at the Castaños, Mexico joint venture plant

CHICAGO, Aug. 10, 2020 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ: RAIL) today reported results for the second quarter ended June 30, 2020.

Business Highlights

“During the second quarter, FreightCar America restarted two of the four production lines in Shoals, and managed through the disruption brought on by the global COVID-19 pandemic. I am very proud of how our team responded, as we focused equally on health, safety and meeting customer expectations,” said Jim Meyer, President and Chief Executive Officer of FreightCar America. “In addition to these important undertakings, we continued to move forward with our vision to become the highest quality and lowest cost producer. In July, we started production at the new joint venture plant in Castaños, Mexico along with preparation for the certification process. We were able to hire an extremely experienced workforce and are happy to welcome them to the team.”

Meyer added, “The pandemic-related disruption further contributed to a difficult demand environment across our industry, which was already in the midst of a cyclical downtown. This further challenged both railcar orders and production scheduling during the second quarter.  Of note, we had one additional week of operational downtime in our Shoals facility in the quarter as we halted production to protect the health and safety of our workforce. And while the recovery pattern remains opaque, we are encouraged by the recent improvement in order inquiries for car types that we are well suited to build.”

Meyer concluded, “Our overall production ramped well through July, giving us confidence in our forecast for second half deliveries to range between 750 and 1,000 railcars. As we look forward, we remain equally focused on preserving our liquidity while also continuing to build the foundation for our future. We believe we are taking the right steps to navigate both the cyclical downturn and pandemic, while repositioning FreightCar America for future success.”

Second Quarter Results

Second Quarter 2020 Conference Call & Webcast Information

The Company will host a conference call and live webcast on Tuesday, August 11, 2020 at 11:00 a.m. (Eastern Daylight Time) to discuss its second quarter 2020 financial results. Investors, analysts, and members of the media interested in listening to the live presentation are encouraged to join a webcast of the call, available on the Company’s website at:

Event URL:

Interested parties may also participate in the call by dialing 877-407-0789 or 201-689-8562 and should use confirmation number 13708161.  Please dial in approximately 10 to 15 minutes prior to the start time of the call to ensure your participation. An audio replay of the conference call will be available beginning at 2:00 p.m. (Eastern Daylight Time) on August 11, 2020 until 11:59 p.m. (Eastern Daylight Time) on August 25, 2020.  To access the replay, please dial 844-512-2921 or 412-317-6671.  The replay pass code is 13708161.  An audio replay of the call will be available on the Company’s website within two days following the earnings call.

About FreightCar America

FreightCar America, Inc. is a diversified manufacturer of railroad freight cars, that also supplies railcar parts and leases freight cars through its FreightCar America Leasing Company subsidiaries. FreightCar America designs and builds high-quality railcars, including open top hopper cars, covered hopper cars, intermodal and non-intermodal flat cars, mill gondola cars, coil steel cars, boxcars, coal cars, and also specializes in the conversion of railcars for repurposed use. It is headquartered in Chicago, Illinois and has facilities in the following locations: Cherokee, Alabama; Castaños, Mexico; Johnstown, Pennsylvania; and Shanghai, People’s Republic of China. More information about FreightCar America is available on its website at

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 potential financial and operational impacts of the COVID-19 pandemic; 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)

 June 30, 2020 December 31, 2019
Assets(in thousands, except for share and per share data)
Current assets     
Cash, cash equivalents and restricted cash equivalents$48,540  $66,257 
Restricted certificates of deposit 3,855   3,769 
Accounts receivable, net 6,789   6,991 
Inventories, net 47,116   25,092 
Income tax receivable 1,027   535 
Other current assets 14,265   7,035 
Total current assets 121,592   109,679 
Property, plant and equipment, net 39,469   38,564 
Railcars available for lease, net 38,393   38,900 
Right of use asset 53,442   56,507 
Other long-term assets 888   1,552 
Total assets$253,784  $245,202 
Liabilities and Stockholders’ Equity     
Current liabilities     
Accounts and contractual payables$18,054  $11,713 
Accrued payroll and other employee costs 306   1,389 
Reserve for workers' compensation 3,344   3,210 
Accrued warranty 7,903   8,388 
Customer deposits 33,012   5,123 
Deferred income state and local incentives, current 2,219   2,219 
Lease liability, current 15,063   14,960 
Current portion of long-term debt 13,950   - 
Other current liabilities 5,626   2,428 
Total current liabilities 99,477   49,430 
Long-term debt, net of current portion 6,250   10,200 
Accrued pension costs 6,006   6,510 
Deferred income state and local incentives, long-term 3,612   4,722 
Lease liability, long-term 48,306   53,766 
Other long-term liabilities 2,833   3,420 
Total liabilities 166,484   128,048 
Stockholders’ equity     
Preferred stock -   - 
Common stock 136   127 
Additional paid in capital 83,318   83,027 
Treasury stock, at cost (1,281)  (989)
Accumulated other comprehensive loss (10,499)  (10,780)
Retained earnings 16,086   45,824 
Total FreightCar America stockholders' equity 87,760   117,209 
Noncontrolling interest in JV (460)  (55)
Total stockholders' equity 87,300   117,154 
Total liabilities and stockholders’ equity$253,784  $245,202 

FreightCar America, Inc.
Condensed Consolidated Statements of Operations

  Three Months Ended  Six Months Ended
 June 30, June 30,
 (In thousands, except for share and per share data)
Revenues$17,458  $73,661  $22,655  $144,369 
Cost of sales 23,602   67,637   37,602   145,194 
Gross (loss) profit (6,144)  6,024   (14,947)  (825)
Selling, general and administrative expenses 6,537   15,352   13,947   23,019 
Loss on sale of railcars available for lease -   5,196   -   5,196 
Restructuring and impairment charges 267   1,319   1,147   1,319 
Operating loss (12,948)  (15,843)  (30,041)  (30,359)
Interest expense and deferred financing costs (167)  (115)  (463)  (151)
Other income 134   83   358   402 
Loss before income taxes (12,981)  (15,875)  (30,146)  (30,108)
Income tax (benefit) provision (1)  12   (3)  (189)
Net loss (12,980)  (15,887)  (30,143)  (29,919)
Less: Net loss attributable to noncontrolling interest in JV (189)  -   (405)  - 
Net loss attributable to FreightCar America$(12,791) $(15,887) $(29,738) $(29,919)
Net loss per common share attributable to FreightCar America- basic and diluted$(0.97) $(1.26) $(2.26) $(2.37)
Weighted average common shares outstanding  – basic and diluted 12,405,011   12,352,271   12,385,946   12,344,684 

FreightCar America, Inc.
Segment Data

 Three Months Ended Six Months Ended
 June 30, June 30,
Manufacturing$15,129  $70,817  $18,069  $138,412 
Corporate and Other 2,329   2,844   4,586   5,957 
Consolidated revenues$17,458  $73,661  $22,655  $144,369 
Operating loss:           
Manufacturing$(8,348) $(3,019) $(20,148) $(12,656)
Corporate and Other (4,600)  (12,824)  (9,893)  (17,703)
Consolidated operating loss (12,948)  (15,843)  (30,041)  (30,359)

FreightCar America, Inc. 
Condensed Consolidated Statements of Cash Flows 

  Six Months Ended June 30,
 2020 2019
Cash flows from operating activities (in thousands)
Net loss$(30,143) $(29,919)
Adjustments to reconcile net loss to net cash flows used in operating activities:     
Non-cash restructuring and impairment charges 352   1,319 
Depreciation and amortization 5,884   6,471 
Change in inventory reserve 5,052   (440)
Amortization expense - right-of-use leased assets 3,065   5,662 
Recognition of deferred income from state and local incentives (1,110)  (1,109)
Loss on sale of railcars available for lease -   5,196 
Stock-based compensation recognized 17   274 
Other non-cash items, net 153   90 
Changes in operating assets and liabilities, net of acquisitions:     
Accounts receivable 202   5,338 
Inventories (27,076)  3,214 
Other assets (7,188)  (2,307)
Accounts and contractual payables 6,456   (4,890)
Accrued payroll and employee benefits (941)  910 
Income taxes receivable/payable (13)  (197)
Accrued warranty (485)  (1,516)
Lease liability (5,391)  (9,091)
Customer deposits 27,889   (1,719)
Other liabilities 2,625   7,827 
Accrued pension costs and accrued postretirement benefits (131)  (266)
Net cash flows used in operating activities (20,783)  (15,153)
Cash flows from investing activities     
Purchase of restricted certificates of deposit (3,855)  (1,117)
Maturity of restricted certificates of deposit 3,769   4,400 
Purchase of securities held to maturity -   (1,986)
Proceeds from maturity of securities -   20,025 
Purchase of property, plant and equipment (7,009)  (2,034)
Proceeds from sale of property, plant and equipment and railcars available for lease 170   11,442 
Net cash flows (used in) provided by investing activities (6,925)  30,730 
Cash flows from financing activities     
Proceeds from issuance of long-term debt 10,000   10,200 
Employee stock settlement (9)  (59)
Deferred financing costs -   (929)
Net cash flows provided by financing activities 9,991   9,212 
Net (decrease) increase in cash and cash equivalents (17,717)  24,789 
Cash, cash equivalents and restricted cash equivalents at beginning of period 66,257   45,070 
Cash, cash equivalents and restricted cash equivalents at end of period$48,540  $69,859 

INVESTOR & MEDIA CONTACTJoe Caminiti or Elizabeth Steckel

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