American Railcar Industries Inc. (ARII, Financial) filed Quarterly Report for the period ended 2009-03-31.
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 railcar and industrial components used in the production of its railcars as well as railcars and non-railcar industrial products produced by others. American Railcar Industries Inc. has a market cap of $179.6 million; its shares were traded at around $8.43 with a P/E ratio of 6.2 and P/S ratio of 0.2. The dividend yield of American Railcar Industries Inc. stocks is 1.4%.
Net interest expense for the three months ended March 31, 2009 was $4.0 million, representing $5.1 million of interest expense and $1.1 million of interest income, as compared to $2.5 million of net interest expense for the three months ended March 31, 2008, representing $5.0 million of interest expense and $2.5 million of interest income.
Earnings from joint venture decreased to a loss of $0.8 million for the three months ended March 31, 2009 from earnings of $0.3 million for the three months ended March 31, 2008. This was partially attributable to our share of Ohio Castings profits and losses decreasing approximately $0.5 million for the three months ended March 31, 2009 as compared to the three months ended March 31, 2008. The decrease was also attributable to our share of Axis losses increasing approximately $0.6 million for the three months ended March 31, 2009 as compared to the three months ended March 31, 2008.
Our primary source of liquidity for the three months ended March 31, 2009 was cash generated from operations and cash we have on hand from the senior unsecured notes we sold in February 2007, offset by cash used for capital expenditures and cash used to purchase our short-term investments. As of March 31, 2009, we had working capital of $370.9 million, including $261.1 million of cash and cash equivalents. We also have a $100.0 million revolving credit facility. This facility is described in further detail in Note 11 of our condensed consolidated financial statement, and provides for relief from certain financial covenants described in that Note so long as we maintain excess availability of at least $30.0 million. At March 31, 2009, we had no borrowings outstanding under this facility and $64.6 million of availability based upon the amount of our eligible accounts receivable and inventory (and without regard to any financial covenants). The revolving credit facility expires on October 5, 2009, and provided commercially favorable terms are available, we plan on entering into a new agreement upon expiration.
Our net cash provided by operating activities for the three months ended March 31, 2009 was $12.5 million. Net earnings of $2.7 million were impacted by non-cash items including but not limited to: depreciation expense of $5.6 million, joint venture loss of $0.8 million and other smaller adjustments. Cash provided by operating activities attributable to changes in our current assets and current liabilities included a decrease in total accounts receivable, including from affiliates of $5.7 million and a decrease in inventory of $15.9 million. Cash used in operating activities attributable to changes in our current assets and liabilities included a decrease in total accounts payable, including to affiliates of $10.9 million and a decrease in accrued expenses and taxes of $7.4 million.
Net cash used in investing activities was $42.5 million for the three months ended March 31, 2009, including $4.9 million of capital expenditures for the purchase of property, plant and equipment, $36.8 million of purchases of short-term investments of available-for-sale securities and $1.3 million equity contribution to one of our joint ventures. The capital expenditures were for the purchase of equipment at multiple locations to increase capacity and operating efficiencies. Some of these purchases are described in further detail below under Capital Expenditures. The short-term investments purchased were corporate bonds that we classified as available-for-sale.
Read the The complete ReportARII is in the portfolios of John Keeley of Keeley Fund Management, Ron Baron of Baron Funds.
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 railcar and industrial components used in the production of its railcars as well as railcars and non-railcar industrial products produced by others. American Railcar Industries Inc. has a market cap of $179.6 million; its shares were traded at around $8.43 with a P/E ratio of 6.2 and P/S ratio of 0.2. The dividend yield of American Railcar Industries Inc. stocks is 1.4%.
Highlight of Business Operations:
Our railcar services revenues in the three months ended March 31, 2009 decreased to $12.3 million compared to $13.3 million for the three months ended March 31, 2008. In the first quarter of 2009, we experienced lower average billings on railcars needing repair. For the first quarter of 2009, our railcar services revenues included $3.5 million, or 2.3% of our total consolidated revenues, from transactions with affiliates, compared to $4.1 million, or 2.2% of our total revenues, in the first quarter of 2008.Net interest expense for the three months ended March 31, 2009 was $4.0 million, representing $5.1 million of interest expense and $1.1 million of interest income, as compared to $2.5 million of net interest expense for the three months ended March 31, 2008, representing $5.0 million of interest expense and $2.5 million of interest income.
Earnings from joint venture decreased to a loss of $0.8 million for the three months ended March 31, 2009 from earnings of $0.3 million for the three months ended March 31, 2008. This was partially attributable to our share of Ohio Castings profits and losses decreasing approximately $0.5 million for the three months ended March 31, 2009 as compared to the three months ended March 31, 2008. The decrease was also attributable to our share of Axis losses increasing approximately $0.6 million for the three months ended March 31, 2009 as compared to the three months ended March 31, 2008.
Our primary source of liquidity for the three months ended March 31, 2009 was cash generated from operations and cash we have on hand from the senior unsecured notes we sold in February 2007, offset by cash used for capital expenditures and cash used to purchase our short-term investments. As of March 31, 2009, we had working capital of $370.9 million, including $261.1 million of cash and cash equivalents. We also have a $100.0 million revolving credit facility. This facility is described in further detail in Note 11 of our condensed consolidated financial statement, and provides for relief from certain financial covenants described in that Note so long as we maintain excess availability of at least $30.0 million. At March 31, 2009, we had no borrowings outstanding under this facility and $64.6 million of availability based upon the amount of our eligible accounts receivable and inventory (and without regard to any financial covenants). The revolving credit facility expires on October 5, 2009, and provided commercially favorable terms are available, we plan on entering into a new agreement upon expiration.
Our net cash provided by operating activities for the three months ended March 31, 2009 was $12.5 million. Net earnings of $2.7 million were impacted by non-cash items including but not limited to: depreciation expense of $5.6 million, joint venture loss of $0.8 million and other smaller adjustments. Cash provided by operating activities attributable to changes in our current assets and current liabilities included a decrease in total accounts receivable, including from affiliates of $5.7 million and a decrease in inventory of $15.9 million. Cash used in operating activities attributable to changes in our current assets and liabilities included a decrease in total accounts payable, including to affiliates of $10.9 million and a decrease in accrued expenses and taxes of $7.4 million.
Net cash used in investing activities was $42.5 million for the three months ended March 31, 2009, including $4.9 million of capital expenditures for the purchase of property, plant and equipment, $36.8 million of purchases of short-term investments of available-for-sale securities and $1.3 million equity contribution to one of our joint ventures. The capital expenditures were for the purchase of equipment at multiple locations to increase capacity and operating efficiencies. Some of these purchases are described in further detail below under Capital Expenditures. The short-term investments purchased were corporate bonds that we classified as available-for-sale.
Read the The complete ReportARII is in the portfolios of John Keeley of Keeley Fund Management, Ron Baron of Baron Funds.
