Revenue during the quarter plunged 34.91 percent to $114.68 million from $176.18 million in the previous year period. Gross margin for the quarter contracted 75 basis points over the previous year period to 26.77 percent. Total expenses were 80.89 percent of quarterly revenues, up from 76.90 percent for the same period last year. That has resulted in a contraction of 399 basis points in operating margin to 19.11 percent.

Operating income for the quarter was $21.92 million, compared with $40.70 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $36.09 million compared with $54.53 million in the prior year period. At the same time, adjusted EBITDA margin improved 52 basis points in the quarter to 31.47 percent from 30.95 percent in the last year period.

Jeff Hollister, president and chief executive officer of ARI, commented, "Despite lower production levels due to continued softness in the North American railcar market, our manufacturing facilities continue to operate efficiently, which we attribute to our skilled workforce, our vertically integrated supply chain, and our flexible operations. In addition, our railcar leasing and railcar services segments continue to complement our core manufacturing business and provide us with supplemental streams of revenue, helping to partially offset the impact and current challenges of operating in a soft market for new railcars.

The company has spent $55.81 million cash to meet investing activities during the quarter as against cash outgo of $22.87 million in the last year period. It has incurred capital expenditure of $57.29 million on net basis during the quarter, up 135.29 percent or $32.94 million from year ago period.

The company has spent $13.94 million cash to carry out financing activities during the quarter as against cash outgo of $124.97 million in the last year period.

Cash and cash equivalents stood at $151.25 million as on Mar. 31, 2017, down 27.31 percent or $56.83 million from $208.08 million on Mar. 31, 2016.

Working capital declines
American Railcar Industries has witnessed a decline in the working capital over the last year. It stood at $206.06 million as at Mar. 31, 2017, down 23.09 percent or $61.87 million from $267.93 million on Mar. 31, 2016. Current ratio was at 3.32 as on Mar. 31, 2017, down from 4.53 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 35 days for the quarter from 60 days for the last year period. Days sales outstanding went up to 29 days for the quarter compared with 20 days for the same period last year.

Days inventory outstanding has decreased to 42 days for the quarter compared with 61 days for the previous year period. At the same time, days payable outstanding went up to 36 days for the quarter from 22 for the same period last year.