Delicious
Digg
Facebook
LinkedIn
Twitter
Fourth Quarter 2012 Highlights
Fourth Quarter Results
Consolidated revenues for the fourth quarter of 2012 were
Manufacturing segment revenues were
Leasing segment revenues were
Consolidated earnings from operations for the fourth quarter of 2012 set a quarterly record of
Adjusted EBITDA, which excludes stock based compensation and other income on short-term investments, was a quarterly record of
Interest expense was
The effective tax rate for the fourth quarter of 2012 was 39.3% compared to 46.2% for the same period in 2011. The effective tax rate decrease in 2012 compared to 2011 was primarily attributable to significantly higher earnings before income taxes in 2012.
Net earnings for the fourth quarter of 2012 were a quarterly record of
2012 Full Year Highlights
2012 Results
Consolidated revenues for 2012 were
Manufacturing segment revenues were
Leasing segment revenues were
Consolidated earnings from operations for 2012 were
The Company recorded a
Adjusted EBITDA was
Net earnings in 2012 were
Backlog
At
The Company's record earnings have contributed to strong cash flow from operations. Cash flow from operations for 2012 was
The Company also paid a dividend of
Segment and Non-GAAP Financial Measures
A reconciliation of the Company's segment revenues and earnings (loss) from operations, used for corporate management and resource allocation purposes, to the consolidated revenues and earnings (loss) from operations is set forth in the supplemental disclosure attached to this press release. 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.
Conference Call and Webcast
ARI will host a webcast and conference call on
About ARI
ARI is a leading North American designer and manufacturer of hopper and tank railcars. ARI and its subsidiaries lease railcars manufactured by the Company to certain markets. In addition, ARI repairs and refurbishes railcars, provides fleet management services and designs and manufactures certain railcar and industrial components. ARI provides its railcar customers with integrated solutions through a comprehensive set of high quality products and related services. More information about
Forward Looking Statement Disclaimer
This press release contains statements relating to expected financial performance and/or future business prospects, events and plans that are forward-looking statements. 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 customer demand for the Company's products, the Company's strategic objectives and long-term strategies, the growth of the Company's leasing business, anticipated future production rates, the Company's plans regarding future dividends, the Company's joint ventures, the Company's backlog and any implication that the Company's backlog may be indicative of future revenues. 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 the Company's forward-looking statements. The payment of future dividends, if any, and the amount thereof, will be at the discretion of ARI's board of directors and will depend upon the Company's operating results, strategic plans, capital requirements, financial condition, provisions of its borrowing arrangements, applicable law and other factors the Company's board of directors considers relevant. Other potential risks and uncertainties include, among other things: the impact of an economic downturn, adverse market conditions and restricted credit markets; ARI's reliance upon a small number of customers that represent a large percentage of revenues and backlog; the health of and prospects for the overall railcar industry; prospects in light of the cyclical nature of the railcar manufacturing business and the current economic environment; anticipated trends relating
to shipments, leasing, railcar services, revenues, financial condition or results of operations; the Company's ability to manage overhead and variations in production rates; the highly competitive nature of the railcar manufacturing industry; fluctuating costs of raw materials, including steel and railcar components and delays in the delivery of such raw materials and components; fluctuations in the supply of components and raw materials that ARI uses in railcar manufacturing; anticipated production schedules for products and the anticipated financing needs, construction and production schedules of ARI's joint ventures; the risks associated with potential joint ventures, potential acquisitions or new business endeavors; the implementation, integration with other systems or ongoing management of the Company's new enterprise resource planning system; the international economic and
political risks related to ARI's joint ventures' current and potential international operations; the risk of the lack of acceptance of new railcar offerings by ARI's customers and the risk of initial production costs for the Company's new railcar offerings being significantly higher than expected; the sufficiency of the Company's liquidity and capital resources; the conversion of ARI's railcar backlog into revenues; compliance with covenants contained in the Company's Lease Fleet Financing; the impact and anticipated benefits of any acquisitions ARI may complete; the impact and costs and expenses of any litigation ARI may be subject to now or in the future; the ongoing benefits and risks related to the Company's relationship with Mr.
|
|
||
| CONSOLIDATED BALANCE SHEETS | ||
| (In thousands, except share and per share amounts) | ||
|
|
||
| 2012 | 2011 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 205,045 | $ 307,172 |
| Short-term investments - available for sale securities | 12,557 | -- |
| Accounts receivable, net | 36,100 | 33,626 |
| Accounts receivable, due from related parties | 3,539 | 6,106 |
| Income taxes receivable | -- | 4,074 |
| Inventories, net | 110,075 | 95,827 |
| Deferred tax assets | 4,114 | 3,203 |
| Prepaid expenses and other current assets | 3,917 | 4,539 |
| Total current assets | 375,347 | 454,547 |
| Property, plant and equipment, net | 155,893 | 155,643 |
| Railcars on operating lease, net | 220,282 | 38,599 |
| Deferred debt issuance costs | 2,374 | 1,335 |
| Interest receivable, due from related parties | -- | 292 |
| Goodwill | 7,169 | 7,169 |
| Investments in and loans to joint ventures | 44,536 | 45,122 |
| Other assets | 4,157 | 1,063 |
| Total assets | $ 809,758 | $ 703,770 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Accounts payable | $ 64,971 | $ 62,318 |
| Accounts payable, due to related parties | 2,831 | 800 |
| Accrued expenses and taxes | 8,432 | 5,879 |
| Accrued compensation | 17,940 | 14,446 |
| Accrued interest expense | 4,465 | 6,875 |
| Short-term debt, including current portion of long-term debt | 2,755 | -- |
| Total current liabilities | 101,394 | 90,318 |
| Long-term debt, net of current portion | 272,245 | 275,000 |
| Deferred tax liability | 53,466 | 14,923 |
| Pension and post-retirement liabilities | 9,518 | 9,280 |
| Other liabilities | 3,670 | 4,080 |
| Total liabilities | 440,293 | 393,601 |
| Stockholders' equity: | ||
|
Common stock, |
213 | 213 |
| Additional paid-in capital | 239,609 | 239,609 |
| Retained earnings | 130,030 | 71,545 |
| Accumulated other comprehensive loss | (387) | (1,198) |
| Total stockholders' equity | 369,465 | 310,169 |
| Total liabilities and stockholders' equity | $ 809,758 | $ 703,770 |
|
|
||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (In thousands, except per share amounts, unaudited) | ||
| For the Three Months Ended | ||
|
|
||
| 2012 | 2011 | |
| Revenues: | ||
|
Manufacturing (including revenues from affiliates of |
$ 187,274 | $ 181,832 |
| Railcar leasing | 5,129 | 427 |
|
Railcar services (including revenues from affiliates of |
15,277 | 14,586 |
| Total revenues | 207,680 | 196,845 |
| Cost of revenues: | ||
| Manufacturing | (145,576) | (159,762) |
| Railcar leasing | (1,710) | (336) |
| Railcar services | (12,534) | (12,106) |
| Total cost of revenues | (159,820) | (172,204) |
| Gross profit | 47,860 | 24,641 |
|
Selling, general and administrative (including costs to a related party of |
(6,543) | (10,169) |
| Earnings from operations | 41,317 | 14,472 |
|
Interest income (including income from related parties of |
706 | 789 |
| Interest expense | (3,135) | (5,148) |
|
Other income (loss) (including income from a related party of |
1,868 | (34) |
| Loss from joint ventures | (482) | (659) |
| Earnings before income taxes | 40,274 | 9,420 |
| Income tax expense | (15,826) | (4,350) |
| Net earnings | $ 24,448 | $ 5,070 |
| Net earnings per common share - basic and diluted | $ 1.14 | $ 0.24 |
| Weighted average common shares outstanding - basic and diluted | 21,352 | 21,352 |
|
|
||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (In thousands, except per share amounts) | ||
| For the Year Ended | ||
|
|
||
| 2012 | 2011 | |
| Revenues: | ||
|
Manufacturing (including revenues from affiliates of |
$ 633,547 | $ 453,092 |
| Railcar leasing | 13,444 | 1,075 |
|
Railcar services (including revenues from affiliates of |
64,732 | 65,218 |
| Total revenues | 711,723 | 519,385 |
| Cost of revenues: | ||
| Manufacturing | (506,083) | (410,308) |
| Railcar leasing | (5,906) | (682) |
| Railcar services | (51,383) | (50,599) |
| Total cost of revenues | (563,372) | (461,589) |
| Gross profit | 148,351 | 57,796 |
|
Selling, general and administrative (including costs to a related party of |
(26,931) | (25,047) |
| Earnings from operations | 121,420 | 32,749 |
|
Interest income (including income from related parties of |
3,003 | 3,654 |
| Interest expense | (17,765) | (20,291) |
| Loss on debt extinguishment | (2,267) | -- |
|
Other income (loss) (including income from a related party of |
1,905 | (10) |
| Loss from joint ventures | (451) | (7,900) |
| Earnings before income taxes | 105,845 | 8,202 |
| Income tax expense | (42,022) | (3,866) |
| Net earnings | $ 63,823 | $ 4,336 |
| Net earnings per common share - basic and diluted | $ 2.99 | $ 0.20 |
| Weighted average common shares outstanding - basic and diluted | 21,352 | 21,352 |
|
|
||||||
| SEGMENT DATA | ||||||
| (In thousands, unaudited) | ||||||
| Revenues | Earnings (Loss) from Operations | |||||
| External | Intersegment | Total | External | Intersegment | Total | |
|
For the Three Months Ended |
||||||
| Manufacturing | $ 187,274 | $ 49,232 | $ 236,506 | $ 39,931 | $ 7,082 | $ 47,013 |
|
|
5,129 | -- | 5,129 | 3,377 | 10 | 3,387 |
| Railcar Services | 15,277 | 54 | 15,331 | 2,024 | (3) | 2,021 |
| Corporate | -- | -- | -- | (4,015) | -- | (4,015) |
| Eliminations | -- | (49,286) | (49,286) | -- | (7,089) | (7,089) |
| Total Consolidated | $ 207,680 | $ -- | $ 207,680 | $ 41,317 | $ -- | $ 41,317 |
|
For the Three Months Ended |
||||||
| Manufacturing | $ 181,832 | $ 26,041 | $ 207,873 | $ 19,820 | $ 4,633 | $ 24,453 |
|
|
427 | -- | 427 | 51 | 20 | 71 |
| Railcar Services | 14,586 | 68 | 14,654 | 1,841 | 29 | 1,870 |
| Corporate | -- | -- | -- | (7,240) | -- | (7,240) |
| Eliminations | -- | (26,109) | (26,109) | -- | (4,682) | (4,682) |
| Total Consolidated | $ 196,845 | $ -- | $ 196,845 | $ 14,472 | $ -- | $ 14,472 |
|
For the Year Ended |
||||||
| Manufacturing | $ 633,547 | $ 219,499 | $ 853,046 | $ 120,623 | $ 35,362 | $ 155,985 |
|
|
13,444 | -- | 13,444 | 7,371 | 29 | 7,400 |
| Railcar Services | 64,732 | 495 | 65,227 | 10,718 | (99) | 10,619 |
| Corporate | -- | -- | -- | (17,292) | -- | (17,292) |
| Eliminations | -- | (219,994) | (219,994) | -- | (35,292) | (35,292) |
| Total Consolidated | $ 711,723 | $ -- | $ 711,723 | $ 121,420 | $ -- | $ 121,420 |
|
For the Year Ended |
||||||
| Manufacturing | $ 453,092 | $ 35,658 | $ 488,750 | $ 36,075 | $ 4,860 | $ 40,935 |
|
|
1,075 | -- | 1,075 | 239 | 20 | 259 |
| Railcar Services | 65,218 | 285 | 65,503 | 12,476 | 19 | 12,495 |
| Corporate | -- | -- | -- | (16,041) | -- | (16,041) |
| Eliminations | -- | (35,943) | (35,943) | -- | (4,899) | (4,899) |
| Total Consolidated | $ 519,385 | $ -- | $ 519,385 | $ 32,749 | $ -- | $ 32,749 |
|
|
||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (In thousands) | ||
| For the Year Ended | ||
|
|
||
| 2012 | 2011 | |
| Operating activities: | ||
| Net earnings | $ 63,823 | $ 4,336 |
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
| Depreciation | 23,850 | 22,167 |
| Amortization of deferred costs | 605 | 699 |
| Loss on disposal of property, plant and equipment | 37 | 171 |
| Stock-based compensation | 4,668 | 3,537 |
| Change in interest receivable, due from related parties | 292 | (105) |
| Loss from joint ventures | 451 | 7,900 |
| Provision for deferred income taxes | 37,113 | 6,533 |
| Adjustment to provision for losses on accounts receivable | 90 | (22) |
| Item related to investing activities: | ||
| Realized gain on sale of short-term investments - available for sale securities | (1,863) | -- |
| Item related to financing activities: | ||
| Loss on debt extinguishment | 2,267 | -- |
| Changes in operating assets and liabilities: | ||
| Accounts receivable, net | (2,568) | (12,616) |
| Accounts receivable, due from related parties | 2,588 | (1,170) |
| Income taxes receivable | 4,057 | 10,590 |
| Inventories, net | (14,224) | (45,813) |
| Prepaid expenses and other current assets | 621 | (1,885) |
| Accounts payable | 2,653 | 32,988 |
| Accounts payable, due to related parties | 2,031 | 525 |
| Accrued expenses and taxes | (2,135) | 207 |
| Other | (2,978) | 81 |
| Net cash provided by operating activities | 121,378 | 28,123 |
| Investing activities: | ||
| Purchases of property, plant and equipment | (19,962) | (6,202) |
| Capital expenditures - leased railcars | (185,918) | (29,444) |
| Proceeds from the sale of property, plant and equipment | 259 | 122 |
| Purchase of short-term investments - available for sale securities | (40,334) | -- |
| Proceeds from sale of short-term investments - available for sale securities | 31,506 | -- |
| Proceeds from the repayments of loans by joint ventures | 1,908 | 775 |
| Investments in and loans to joint ventures | (1,856) | (5,711) |
| Net cash used in investing activities | (214,397) | (40,460) |
| Financing activities: | ||
| Repayment of long-term debt | (100,000) | -- |
| Proceeds from long-term debt | 100,000 | -- |
| Premium on debt redemption | (1,875) | -- |
| Payment of common stock dividends | (5,338) | -- |
| Debt issuance costs | (1,917) | -- |
| Proceeds from stock option exercises | -- | 756 |
| Net cash (used in) provided by financing activities | (9,130) | 756 |
| Effect of exchange rate changes on cash and cash equivalents | 22 | (5) |
| Decrease in cash and cash equivalents | (102,127) | (11,586) |
| Cash and cash equivalents at beginning of period | 307,172 | 318,758 |
| Cash and cash equivalents at end of period | $ 205,045 | $ 307,172 |
|
|
||||
| RECONCILIATION OF NET EARNINGS TO EBITDA AND ADJUSTED EBITDA | ||||
| (In thousands, unaudited) | ||||
| For the Three Months Ended | For the Year Ended | |||
|
|
|
|||
| 2012 | 2011 | 2012 | 2011 | |
| Net earnings | $ 24,448 | $ 5,070 | $ 63,823 | $ 4,336 |
| Income tax expense | 15,826 | 4,350 | 42,022 | 3,866 |
| Interest expense | 3,135 | 5,148 | 17,765 | 20,291 |
| Loss on debt extinguishment | -- | -- | 2,267 | -- |
| Interest income | (706) | (789) | (3,003) | (3,654) |
| Depreciation | 6,344 | 5,295 | 23,850 | 22,167 |
| EBITDA | $ 49,047 | $ 19,074 | $ 146,724 | $ 47,006 |
| Other income related to our short-term investments | (1,863) | -- | (1,863) | -- |
| Expense related to stock appreciation rights compensation 1 | 858 | 4,665 | 4,668 | 3,537 |
| Adjusted EBITDA | $ 48,042 | $ 23,739 | $ 149,529 | $ 50,543 |
| 1 SARs are cash settled at time of exercise | ||||
EBITDA represents net earnings before income tax expense, interest expense (income), loss on debt extinguishment and depreciation of property, plant and equipment. The Company believes EBITDA is useful to investors in evaluating ARI's operating performance compared to that of other companies in the same industry. In addition, ARI's management uses EBITDA to evaluate 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 (U.S. GAAP). Accordingly, when analyzing the Company's operating performance, investors should not consider EBITDA in isolation or as a substitute for net earnings, cash flows provided by operating activities or other statement of operations or cash flow data prepared in accordance with U.S. GAAP. The calculation of EBITDA is not necessarily comparable to that of other similarly titled measures reported by other companies.
Adjusted EBITDA represents EBITDA before stock based compensation related to stock appreciation rights (SARs) and other income related to our short-term investments. Management believes that Adjusted EBITDA is useful to investors in evaluating the Company's operating performance, and therefore uses Adjusted EBITDA for that purpose. The Company's SARs, which settle in cash, are revalued each period based primarily upon changes in ARI's stock price. Management believes that eliminating the expense associated with stock-based compensation and income associated with short-term investments allows management and ARI's investors to understand better the operating results independent of financial changes caused by the fluctuating price and value of the Company's common stock and short-term investments. Adjusted EBITDA is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing operating performance, investors should not consider Adjusted EBITDA in isolation or as a substitute for net earnings, cash flows provided by (used in) operating activities or other statements of operations or cash flow data prepared in accordance with U.S. GAAP. The Company's calculation of Adjusted EBITDA is not necessarily comparable to that of other similarly titled measures reported by other companies.
CONTACT:Source:Dale C. Davies Michael Obertop 636.940.6000
News Provided by Acquire Media
Mixx
Yahoo! Buzz