- FreightCar America (NASDAQ:RAIL) has provided business update and outlook for the next year ahead of its special call with investors scheduled for later in the day.
- The company records its first positive Adjusted EBITDA in Q4 2021 at the Castaños facility with total railcar deliveries up 130% Y/Y for the year.
- During the quarter, FreightCar completed its transition of railcar manufacturing operations to Castaños, Mexico, making it the only railcar manufacturer serving the North American markets with production exclusively in Mexico.
- Booked 1,032 new railcar orders.
- Annual fixed cost savings of approximately $20M.
- The company ended the quarter with $26.2M in total cash and liquidity of over $40M.
- FY 2022 Outlook: FreightCar targets to achieve 2,350 – 2,650 railcars deliveries during the next year, an increase of over 44% Y/Y at the midpoint.
- To stay Adjusted EBITDA positive.
- Complete construction of additional production lines, doubling annual capacity to between 4,000 – 5,000 railcars by early 2023.
- Also, the company aims to add operational efficiencies through expansion scheduled for completion by mid of this year.
- "2022 will be the first year for which our operations and results will not be obscured by restructuring activities. As such, we believe that our performance this year will provide more clarity on the full potential of FreightCar America," said President and CEO Jim Meyer.
- The company has scheduled its fourth quarter and full year 2021 results to be released on March 22, 2022.
- Stock is up 2% in premarket trading.
- This FreightCar's investor call event was flagged in this week's Seeking Alpha Catalyst Watch; see what's coming next this week.
I like RAIL – I think there's a lot of growth potential there.
Thinly traded options but it looks like you can sell 2024 $5 puts for $2.50 to net $2.50 so you make 100% even in an IRA for promising to buy them for a 37.5% discount to the current price. Seems very reasonable. They don't make any money but don't lose much either and only $265M in sales and only $60M valuation means ANY profits going forward will make a huge difference. I say let's sell 40 of the 2024 $5 puts for $2.50 in the LTP and that's a nice $10,000 and worst case is we own 4,000 shares for net $10,000 – nothing wrong with either outcome there!
