Revenue during the quarter plunged 35.80 percent to $167.51 million from $260.90 million in the previous year period. Gross margin for the quarter expanded 104 basis points over the previous year period to 28.54 percent. Total expenses were 77.70 percent of quarterly revenues, up from 76.37 percent for the same period last year. That has resulted in a contraction of 133 basis points in operating margin to 22.30 percent.

Operating income for the quarter was $37.35 million, compared with $61.64 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $51.80 million compared with $75.75 million in the prior year period. At the same time, adjusted EBITDA margin improved 189 basis points in the quarter to 30.92 percent from 29.04 percent in the last year period.

Jeff Hollister, president and chief executive officer of ARI, commented, "As we navigate through this current down cycle, we rely on revenues from our lease fleet and railcar services business to partially offset the softness in the market for new railcars. Given the strategic growth of our railcar leasing segment over the past five years, we are better positioned to weather the current market than we were during the previous downturn as we now have a lease fleet of 11,268 railcars that provide a steady stream of revenues. We remain committed to manufacturing quality hopper and tank railcars and continue to adjust our production rates as needed in an effort to align them with industry demand. In addition, we continue to monitor the FRA directive closely. After actively cooperating with the FRA and expressing our concerns with the Original Directive issued on September 30, 2016, the FRA issued a Revised Directive on November 18, 2016 that both changes and supersedes the Original Directive. While significant uncertainty in the industry still exists in connection with the Revised Directive and its implementation, we continue working with the FRA, our customers and industry groups to comply with the Revised Directive, as it is currently stated."

The company has spent $114.74 million cash to meet investing activities during the year as against cash outgo of $240.64 million in the last year. It has incurred net capital expenditure of $112.40 million on net basis during the year, down 54.70 percent or $135.74 million from year ago.

The company has spent $185.21 million cash to carry out financing activities during the year as against cash inflow of $186.40 million in the last year period.

Cash and cash equivalents stood at $178.57 million as on Dec. 31, 2016, down 40.09 percent or $119.49 million from $298.06 million on Dec. 31, 2015.

Working capital declines
American Railcar Industries, Inc. has witnessed a decline in the working capital over the last year. It stood at $239.56 million as at Dec. 31, 2016, down 12.36 percent or $33.78 million from $273.34 million on Dec. 31, 2015. Current ratio was at 3.58 as on Dec. 31, 2016, up from 2.48 on Dec. 31, 2015.