FreightCar America (NASDAQ: RAIL) reported Q1 EPS of ($1.92), versus ($0.26) reported last year. Revenue for the quarter came in at $32.4 million versus the consensus estimate of $38.2 million.

Business Highlights

• First quarter revenue of $32.4 million, up 523% year-over-year, on deliveries of 309 railcars
• Gross margin of $1.8 million, positive for the second consecutive quarter despite the operational complexities of completing the transition from Shoals to Castaños
• First quarter net loss of $38.4 million, or $1.92 per share, which included $6.7 million of restructuring charges and a $22.1 million non-cash charge related to the change in fair market value of warrant liability
• Adjusted EBITDA loss was $1.3 million, which excludes the previously mentioned adjustments
• Quarter-end backlog totaled 1,380 railcars with an aggregate value of approximately $137 million
• 2021 delivery outlook raised to between 1,600 and 1,750 railcars, up from between 1,400 and 1,600 railcars
• Subsequent to quarter end, entered into amendment to an existing term loan, providing an additional $16 million in short-term financing to fund working capital required for growth

“We are already seeing the early benefits of moving our manufacturing footprint to Castaños, which drove the improved year-over-year performance and resulted in our second consecutive quarter of positive gross margin,” said Jim Meyer, President and Chief Executive Officer of FreightCar America. “We continue to be impressed with the ramp-up of the Castaños facility and the dedication and talent of the new team.”

Meyer added, “We are also seeing encouraging signs of momentum building across the end-markets we serve. We expect this momentum to translate positively to FreightCar’s business with sales inquiries and new order activity proving to be stronger than we initially anticipated. As a result, we have raised our 2021 outlook to between 1,600 and 1,750 railcar deliveries, up from our initial expectations of between 1,400 and 1,600 railcars. We are simply thrilled by what has been accomplished at FreightCar in the last 6 – 12 months and believe the leverage from our new operations and cost structure will serve us well in the improving market.”

Meyer concluded, “Given the pace of progress and in anticipation of higher demand, we have increased our term loan with our financial partner to bring in $16 million of additional liquidity. These funds will bolster our balance sheet and fund working capital needs. We are thankful to have a strong financial partner that is able to provide this flexible financing.”

For earnings history and earnings-related data on FreightCar America (RAIL) click here.