American Railcar Industries, Inc.
May 2, 2007

American Railcar Industries, Inc. Reports Record Revenue - Net Earnings to Common Shareholders Double versus First Quarter 2006

ST. CHARLES, Mo.--(BUSINESS WIRE)--May 2, 2007--American Railcar Industries, Inc. ("ARI" or the "Company") (NASDAQ: ARII) today reported its first quarter 2007 financial results.

For the three months ended March 31, 2007, revenues were $187.3 million and the net earnings attributable to common shareholders were $13.5 million or $0.63 per diluted share. In comparison, for the three months ended March 31, 2006, the Company had revenues of $178.7 million and net earnings attributable to common shareholders of $6.7 million or $0.35 per diluted share. Net earnings attributable to common shareholders for the first quarter of 2007 increased 102% over the same quarter in 2006.

EBITDA was $24.9 million in the first quarter of 2007 compared to $14.3 million in the first quarter of 2006. Adjusted EBITDA was $25.5 million in the first quarter of 2007 compared to $17.9 million in the first quarter of 2006. The adjustment to EBITDA in the first quarter reflects $0.6 million of stock based compensation expense in 2007 compared to $3.6 million of stock based compensation expense in the first quarter of 2006.

The increases in net earnings, EBITDA and Adjusted EBITDA in 2007 compared to 2006 resulted primarily from increased gross profit for our manufacturing operations, a decrease in selling, administrative and other expenses and a decrease in net interest expense. A reconciliation of the Company's net earnings to EBITDA and Adjusted EBITDA (both non-GAAP financial measures) is set forth in the supplemental disclosure attached to this press release.

Revenues increased in the first quarter of 2007 compared to the same period in 2006 primarily due to overall price increases and a shift in mix towards more expensive railcars. ARI shipped 1,921 railcars in the first quarter of 2007 compared to 1,980 in the first quarter of 2006. First quarter 2007 shipments were comprised of 1,177 covered hopper railcars and 744 tank railcars. In the first quarter of 2006, shipments were comprised of 1,527 covered hopper railcars and 453 tank railcars. The Company's increase in tank railcar shipments in the first quarter of 2007 was primarily due to an increase in capacity at the Company's Marmaduke tank railcar production complex as a result of a recently completed expansion. The Company experienced a decrease in covered hopper railcar shipments in the first quarter of 2007 primarily because of an increase in finished goods inventory of covered hopper railcars built against firm orders. These railcars are expected to ship in the second quarter of 2007.

"The Company had a very strong quarter, achieving record financial results," said James J. Unger, President and CEO of ARI. "Our substantial backlog of unfilled orders for new railcars totaled 14,623 railcars at March 31, 2007, which is approximately even with the backlog of 14,596 railcars we had at March 31, 2006, but down from the backlog of 16,473 railcars at December 31, 2006. Our tank railcar lines are fully booked into early 2009 but we currently have capacity available to satisfy covered hopper railcar demand in the second half of 2007."

ARI will host a webcast and conference call on Thursday May 3, 2007 at 10:00 am (Eastern Time) to discuss the Company's first quarter financial results. To participate in the webcast, please log on to ARI's investor relations page through the ARI website at www.americanrailcar.com. To participate in the conference call dial 1-800-299-7928 and use participant code 79441019. Participants are asked to logon to the ARI website or dial in to the conference call approximately 10 to 15 minutes prior to the start time.

An audio replay of the call will also be available on the Company's website promptly following the earnings call.

About American Railcar Industries, Inc.

American Railcar Industries, Inc. is a leading North American manufacturer of covered hopper and tank railcars. ARI also repairs and refurbishes railcars, provides fleet management services and designs and manufactures certain railcar and industrial components used in the production of its railcars as well as railcars and non-railcar industrial products produced by others. ARI provides its railcar customers with integrated solutions through a comprehensive set of high quality products and related services.

Forward Looking Statement Disclaimer

This press release contains 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 the Company's estimates and assumptions only as of the date of this press release. Such statements include, without limitation, statements regarding estimated future production rates, estimated future manufacturing capacity and statements regarding any implication that the Company's backlog may be indicative of future sales. These forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from the results described in or anticipated by our forward-looking statements. Estimated backlog reflects the total sales attributable to the backlog reported at the end of the particular period as if such backlog were converted to actual sales. Estimated backlog does not reflect potential price increases or decreases under our customer contracts that provide for variable pricing based on changes in the cost of certain raw materials and railcar components or the possibility that contracts may be canceled or railcar delivery dates delayed, and does not reflect the effects of any cancellation or delay of railcar orders that may occur. Other potential risks and uncertainties include, among other things: the cyclical nature of the railcar manufacturing business; adverse economic and market conditions; fluctuating costs of raw materials, including steel and railcar components, and delays in the delivery of such raw materials and components; ARI's ability to maintain relationships with its suppliers of railcar components and raw materials; ARI's ability to complete construction of its new flexible railcar plant in Marmaduke on a timely basis and with budget; fluctuations in the supply of components and raw materials ARI uses in railcar manufacturing; the highly competitive nature of the railcar manufacturing industry; the risk of further damage to our primary railcar manufacturing facilities or equipment; our reliance upon a small number of customers that represent a large percentage of our revenues; the variable purchase patterns of our customers and the timing of completion, delivery and acceptance of customer orders; our dependence on key personnel; the risks of labor shortage in light of our recent growth; the risk of lack of acceptance of our new railcar offerings by our customers; and the additional risk factors described in our filings with the Securities and Exchange Commission. 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.

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts, unaudited)

                                         March 31,  December 31,
                                        ------------------------
                                           2007        2006
----------------------------------------------------------------
Assets
Current assets:
  Cash                                     $323,433     $40,922
  Accounts receivable, net                   40,273      34,868
  Accounts receivable, due from
   affiliates                                 9,982       9,632
  Inventories, net                          111,157     103,510
  Prepaid expenses                            5,152       5,853
  Deferred tax assets                         2,072       2,089
                                        ------------------------
    Total current assets                    492,069     196,874

Property, plant and equipment, net          134,469     130,293
Deferred debt issuance costs                  4,200         235
Goodwill                                      7,169       7,169
Other assets                                     37          37
Investment in joint venture                   4,542       4,318
                                        ------------------------
    Total assets                           $642,486    $338,926
                                        ========================

Liabilities and Stockholders' Equity
Current liabilities:
  Current portion of long-term debt             $75         $88
  Accounts payable                           59,687      54,962
  Accounts payable, due to affiliates         1,727       1,689
  Accrued expenses and taxes                 13,460       3,131
  Accrued compensation                        9,969      10,282
  Accrued dividends                             637         636
                                        ------------------------
    Total current liabilities                85,555      70,788

Long-term debt, net of current portion            -           8
Senior unsecured notes                      275,000           -
Deferred tax liability                        5,035       7,042
Pension and post-retirement liabilities      10,465      10,859
Other liabilities                             2,201          49
                                        ------------------------
    Total liabilities                       378,256      88,746

Commitments and contingencies                     -           -

Stockholders' equity:
Common stock, $.01 par value, 50,000,000
 shares authorized, 21,235,186 and
 21,207,773 shares issued and
 outstanding at March 31, 2007 and
 December 31, 2006, respectively                212         212
Additional paid-in capital                  236,986     235,768
Retained earnings                            29,474      16,649
Accumulated other comprehensive loss         (2,442)     (2,449)
                                        ------------------------
    Total stockholders' equity              264,230     250,180
                                        ------------------------
    Total liabilities and stockholders'
     equity                                $642,486    $338,926
                                        ========================
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)

                                                     For the Three
                                                      Months Ended,
                                                   March 31, March 31,
                                                   --------- ---------
                                                     2007      2006
                                                   --------- ---------
Revenues:
Manufacturing operations (including revenues from
 affiliates of $16,018 and $15,027 for the three
 months ended March 31, 2007 and 2006,
 respectively)                                     $175,127  $166,490

Railcar services (including revenues from
 affiliates of $3,934 and $5,982 for the three
 months ended March 31, 2007 and 2006,
 respectively)                                       12,216    12,239
                                                   --------- ---------
   Total revenues                                   187,343   178,729

Cost of goods sold:
Manufacturing operations (including costs related
 to affiliates of $14,520 and $14,068 for the
 three months ended March 31, 2007 and 2006,
 respectively)                                     (149,439) (148,256)

Railcar services (including costs related to
 affiliates of $3,093 and $4,571 for the three
 months ended March 31, 2007 and 2006,
 respectively)                                       (9,923)  (10,213)
                                                   --------- ---------
Total cost of goods sold                           (159,362) (158,469)
    Gross profit                                     27,981    20,260

Selling, administrative and other                    (6,703)   (8,695)
                                                   --------- ---------
    Earnings from operations                         21,278    11,565

Interest income                                       1,881       486
Interest expense (including interest expense to
 affiliates of zero and $98 for the three months
 ended March 31, 2007 and 2006, respectively)        (1,938)   (1,030)
Earnings from joint venture                             227       475
                                                   --------- ---------
    Earnings before income tax expense               21,448    11,496
Income tax expense                                   (7,941)    4,235
                                                   --------- ---------
  Net earnings                                      $13,507    $7,261
                                                   ========= =========
  Less preferred dividends                                -      (568)
                                                   --------- ---------
  Earnings (loss) available to common shareholders  $13,507    $6,693

Net earnings (loss) per common share - basic          $0.64     $0.35
Net earnings (loss) per common share - diluted        $0.63     $0.35
Weighted average common shares outstanding - basic   21,220    19,013
Weighted average common shares outstanding -
 diluted                                             21,310    19,139

Dividends declared per common share                   $0.03     $0.03
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
                                                     For the Three
                                                       Months Ended
                                                   March 31, March 31,
                                                   --------- ---------
                                                     2007      2006
                                                   --------- ---------
Operating activities:
  Net earnings                                      $13,507    $7,261
Adjustments to reconcile net earnings to net cash
 provided by (used in)
   operating activities:
   Depreciation                                       3,364     2,261
   Amortization                                          87        29
   Long lived asset impairment charges                    -       401
   Loss on disposal of property, plant and
    equipment                                            22         -
   Write-off of deferred financing costs                  -       565
   Stock based compensation                             632     3,550
   Excess tax benefits from stock option exercises      (10)        -
   Change in joint venture investment as a result
    of earnings                                        (227)     (475)
   Provision for deferred income taxes               (1,990)      709
   Provision for losses on accounts receivable          (79)       39
   Changes in operating assets and liabilities:
    Accounts receivable, net                         (5,326)   (5,779)
    Accounts receivable, due from affiliate            (350)   (8,078)
    Inventories                                      (7,647)   (6,626)
    Prepaid expenses                                    701    (2,443)
    Accounts payable                                  4,725    (4,293)
    Accounts payable, due to affiliate                   38       240
    Accrued expenses and taxes                        9,981     3,208
    Other                                             1,769      (181)
                                                   --------- ---------
Net cash provided by (used in) operating activities  19,197    (9,612)

Investing activities:
   Purchases of property, plant and equipment        (7,558)   (9,915)
   Repayment of note receivable for affiliate
    (Castings LLC)                                        -       146
   Acquisitions                                           -   (17,061)
                                                   --------- ---------
Net cash used in investing activities                (7,558)  (26,830)

Financing activities:
   Proceeds from sale of common stock                     -   205,275
   Offering costs - initial public offering               -   (14,667)
   Preferred stock redemption                             -   (82,056)
   Preferred stock dividends                              -   (11,904)
   Common stock dividends                              (636)        -
   Decrease in amounts due to affiliate                  (4)  (20,482)
   Proceeds from stock option exercises                 576         -
   Excess tax benefits from stock option exercises       10         -
   Proceeds from issuance of senior unsecured
    notes, gross                                    275,000         -
   Offering costs - senior unsecured notes, gross    (4,013)
   Finance fees related to credit facility              (40)     (265)
   Repayment of debt                                    (21)  (40,213)
                                                   --------- ---------
Net cash provided by financing activities           270,872    35,688
                                                   --------- ---------
Increase (decrease) in cash                         282,511      (754)
Cash at beginning of period                          40,922    28,692
                                                   --------- ---------
Cash at end of period                              $323,433   $27,938
                                                   ========= =========
RECONCILIATION OF NET EARNINGS TO EBITDA AND ADJUSTED EBITDA
(In thousands)

                                                       Three months
                                                           ended
                                                    ------------------
                                                         March 31
                                                    ------------------
                                                      2007     2006
----------------------------------------------------------------------


Net earnings                                         $13,507   $7,261
Income tax expense                                     7,941    4,235
Interest expense                                       1,938    1,030
Interest income                                       (1,881)    (486)
Depreciation                                           3,364    2,261
                                                     -------- --------
EBITDA                                               $24,869  $14,301
                                                     ======== ========
Stock based compensation expense                         632    3,550
                                                     -------- --------
Adjusted EBITDA                                      $25,501  $17,851
                                                     ======== ========

EBITDA represents net earnings before income tax expense, interest expense (income), net of depreciation of property, plant and equipment. We believe EBITDA is useful to investors in evaluating our operating performance compared to that of other companies in our industry. In addition, our management uses EBITDA to evaluate our operating performance. The calculation of EBITDA eliminates the effects of financing, income taxes and the accounting effects of capital spending. These items may vary for different companies for reasons unrelated to the overall operating performance of a company's business. EBITDA is not a financial measure presented in accordance with U.S. generally accepted accounting principles, or U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider EBITDA in isolation or as a substitute for net earnings, cash flows from operating activities or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of EBITDA is not necessarily comparable to that of other similarly titled measures reported by other companies.

Adjusted EBITDA represents EBITDA before elimination of stock based compensation expense related to a restricted stock grant and stock options. We believe that Adjusted EBITDA is useful to investors evaluating our operating performance compared to that of other companies in our industry. In addition, these charges are excluded from our calculation of EBITDA under our unsecured senior notes. Management also uses Adjusted EBITDA in evaluating our operating performance. Adjusted EBITDA is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted EBITDA in isolation or as a substitute for net earnings, cash flows from operating activities or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Adjusted EBITDA is not necessarily comparable to that of other similarly titled measures reported by other companies.

CONTACT: American Railcar Industries, Inc.
William P. Benac or Michael Obertop, 636-940-6000

SOURCE: American Railcar Industries, Inc.