American Railcar Industries, Inc. (ARI or the Company) (NASDAQ: ARII) reported its fourth quarter and year end 2009 financial results.
For the three months ended December 31, 2009, revenues were $78.5 million and net earnings were $10.5 million or $0.50 per share. In comparison, for the three months ended December 31, 2008, revenues were $203.0 million and net earnings were $7.6 million or $0.35 per share. Net earnings in the fourth quarter of 2009 were positively impacted by the Company’s short-term investment activity, which resulted in a net gain of $17.8 million for the quarter, $11.6 million after-tax or $0.54 per share.
Revenues were lower in the fourth quarter of 2009 compared to the same period of 2008, primarily due to a decrease in the number of railcars shipped and a decrease in surcharges reflected in selling prices, partially offset by a change in product mix and an increase in revenues from the railcar services segment. During the three months ended December 31, 2009, the Company shipped approximately 610 railcars compared to approximately 1,870 railcars in the same period of 2008.
EBITDA, adjusted to exclude investment activity and stock based compensation expense, was $7.9 million in the fourth quarter of 2009 as compared to $20.2 million in the fourth quarter of 2008. This decrease resulted primarily from decreased railcar shipments, as discussed above, and an increase in joint venture losses, all partially offset by lower selling, administrative and other costs. Losses from joint ventures were $1.6 million higher in the fourth quarter of 2009 than in the fourth quarter of 2008, primarily due to temporarily idling the Company’s castings joint venture and losses from its axle joint venture.
In the fourth quarter of 2009, net earnings benefited from higher other income partially offset by joint venture losses and decreased railcar shipments, as discussed above. Other income of $17.8 million, as mentioned above, related to net gains on the Company’s short-term investment activity in the fourth quarter of 2009 as compared to $0.2 million, $0.1 million after-tax or $0.01 per share of other income in the fourth quarter of 2008 related to short-term investment activity. A reconciliation of the Company’s net earnings to EBITDA (a non-GAAP financial measure) is set forth in the supplemental disclosure attached to this press release.
For the year ended December 31, 2009, revenues were $423.4 million and net earnings were $15.5 million or $0.73 per share. In comparison, for the year ended December 31, 2008, revenues were $808.8 million and net earnings were $31.4 million or $1.47 per share. Net earnings for 2009 were positively impacted by the Company’s short-term investment activity, which resulted in a net gain of $20.9 million for the year, $13.6 million after-tax or $0.64 per share.
Revenues were lower in 2009 compared to 2008 primarily due to decreased railcar shipments and a decrease in surcharges reflected in selling prices, partially offset by a change in product mix and an increase in revenues from the railcar services segment. During the year ended December 31, 2009, the Company shipped approximately 3,690 railcars compared to approximately 7,970 railcars in the same period of 2008.
EBITDA, adjusted to exclude investment activity and stock based compensation expense, was $40.0 million for the year ended December 31, 2009 compared to $78.8 million for the year ended December 31, 2008. This decrease resulted primarily from decreased railcar shipments, as discussed above, and an increase in joint venture losses, partially offset by an increase in earnings from the railcar services segment and lower selling, administrative and other costs. Losses from joint ventures were $7.5 million higher in 2009, as compared to the same period in 2008, resulting in a decrease to earnings of $5.3 million after-tax or $0.25 per share, primarily due to temporarily idling the Company’s castings joint venture and losses from its axle joint venture.
During 2009, net earnings were negatively impacted by decreased railcar shipments and joint venture losses, as discussed above, partially offset by an increase in other income. Other income of $20.9 million as discussed above, related to net gains on the Company’s short-term investment activity in 2009 as compared to $3.7 million, $2.4 million after-tax or $0.11 per share of other income in 2008 related to short-term investment activity. Net earnings benefited from a one-time $1.0 million adjustment to accrued taxes due to certain tax benefits becoming recognizable during 2009. Net earnings were negatively impacted by net interest expense, which increased $1.3 million after-tax or $0.06 per share primarily due to lower interest rates negatively affecting interest income and a decrease in capitalized interest.
Tags: American Railcar Industries, Financial
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