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Articles 

American Railcar Industries Inc. Reports Operating Results (10-Q)

August 03, 2012 | About:

American Railcar Industries Inc. (NASDAQ:ARII) filed Quarterly Report for the period ended 2012-06-30.

American Railcar Industries, Inc. has a market cap of $631.5 million; its shares were traded at around $29.31 with a P/E ratio of 18.3 and P/S ratio of 1.2.

Highlight of Business Operations:

Our railcar services revenues for the three months ended June 30, 2012 decreased to $17.0 million compared to $17.4 million for the three months ended June 30, 2011. The decrease was primarily attributable to decreased railcar repair projects at the manufacturing facilities, as this capacity was returned to new railcar manufacturing. For the three months ended June 30, 2012, our railcar services revenues included transactions with ARL totaling $5.8 million, or 3.8% of our total consolidated revenues, compared to $6.6 million, or 5.9% of our total consolidated revenues, for the three months ended June 30, 2011.

Our total consolidated earnings from operations increased to a record $26.0 million for the three months ended June 30, 2012 from $8.2 million for the three months ended June 30, 2011. Our operating margins increased to 16.8% for the three months ended June 30, 2012 from 7.3% for the three months ended June 30, 2011. These increases were due primarily to an increase in earnings from operations for manufacturing. Our total selling, general and administrative costs increased to $7.5 million for the second quarter of 2012 compared to $5.1 million for the second quarter of 2011. The increase of $2.4 million was primarily attributable to increases in incentive compensation and stock-based compensation, which fluctuates with our stock price.

Our railcar services revenues for the six months ended June 30, 2012 decreased to $32.9 million compared to $33.6 million for the six months ended June 30, 2011. The decrease was primarily attributable to decreased railcar repair projects at the manufacturing facilities, as this capacity was returned to new railcar manufacturing. For the six months ended June 30, 2012, our railcar services revenues included transactions with ARL totaling $11.0 million, or 3.3% of our total consolidated revenues, compared to $12.1 million, or 6.2% of our total consolidated revenues, for the six months ended June 30, 2011.

Our total consolidated earnings from operations increased to $49.8 million for the six months ended June 30, 2012 from $6.3 million for the six months ended June 30, 2011. Our operating margins increased to 14.8% for the six months ended June 30, 2012 from 3.2% for the six months ended June 30, 2011. These increases were due primarily to an increase in earnings from operations for manufacturing. Our total selling, general and administrative costs increased to $14.0 million for the six months ended June 30, 2012 compared to $11.9 million for the six months ended June 30, 2011. The increase of $2.1 million was primarily attributable to increases in incentive compensation and stock-based compensation, which fluctuates with our stock price.

Our net cash provided by operating activities for the six months ended June 30, 2012 was $61.4 million. Our net earnings of $25.4 million were impacted by non-cash items including depreciation expense of $11.3 million, provision for deferred income taxes of $15.9 million, stock-based compensation expense of $2.8 million and other smaller items.

Read the The complete Report

About the author:

10qk
Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

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