Revenue during the quarter dropped 6.09 percent to $139.54 million from $148.59 million in the previous year period. Gross margin for the quarter contracted 360 basis points over the previous year period to 7.09 percent. Total expenses were 99.21 percent of quarterly revenues, up from 86.81 percent for the same period last year. That has resulted in a contraction of 1240 basis points in operating margin to 0.79 percent.

Operating income for the quarter was $1.10 million, compared with $19.60 million in the previous year period.

However, the adjusted operating income for the quarter stood at $2.88 million compared to $5.29 million in the prior year period. At the same time, adjusted operating margin contracted 150 basis points in the quarter to 2.06 percent from 3.56 percent in the last year period.

“Our cost reduction efforts and operational improvements are beginning to positively impact our results as deliveries and net income exceeded fourth quarter 2016 results. However, overall market conditions remain challenging as demonstrated by continued weakness in orders for new railcars,” said Joe McNeely, President and Chief Executive Officer. “While near term uncertainty still exists, we are confident that the cost reduction initiatives that we have implemented, our diversified product offering and our strong balance sheet have positioned the Company to manage through the downturn. Finally, deliveries for 2017, including the cars delivered in the first quarter and orders received to date in the second quarter, are now expected to range between 4,200 and 4,400 railcars.”

The company has spent $9.51 million cash to meet investing activities during the quarter as against cash inflow of $5.28 million in the last year period.

The company has spent $1.13 million cash to carry out financing activities during the quarter as against cash outgo of $1.18 million in the last year period.

Cash and cash equivalents stood at $98.07 million as on Mar. 31, 2017, up 39.65 percent or $27.84 million from $70.22 million on Mar. 31, 2016.

Working capital remains almost stable
FreightCar America, Inc has recorded an increase in the working capital over the last year. It stood at $189.21 million as at Mar. 31, 2017, up 0.82 percent or $1.54 million from $187.67 million on Mar. 31, 2016. Current ratio was at 4.47 as on Mar. 31, 2017, up from 3.22 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 23 days for the quarter from 78 days for the last year period. Days sales outstanding went up to 20 days for the quarter compared with 18 days for the same period last year.

Days inventory outstanding has decreased to 27 days for the quarter compared with 86 days for the previous year period. At the same time, days payable outstanding went down to 23 days for the quarter from 26 for the same period last year.