American Railcar Industries Inc
American Railcar Industries — Q1 2018 Earnings Presentation
18 slides from American Railcar Industries's earnings presentation, May 1, 2018
Slide 1: Q1 2018 Supplemental Information
Q1 2018 Supplemental Information Investor Contact: 636.940.6000 Website: americanrailcar.com American Railcar Industries, Inc. Exhibit 99.2
Slide 2: Forward Looking Disclaimer
Forward Looking Disclaimer Safe Harbor Statement This presentation contains statements relating to our expected financial performance, objectives, long-term strategies and/or future business prospects, events and plans that are forward-looking statements. Forward-looking statements represent our est
Slide 3: ARI – Successful and Diversified Business Model
ARI – Successful and Diversified Business Model Complete life cycle solutions for the railcar industry. Railcars Components Manufacturing Railcar Repair Services Railcar Leasing 3
Slide 4: ARI Locations
ARI Locations Added to strategically placed sales force to cover our customers’ needs 4
Slide 5: ARI Key Railcar Markets - Two Largest Product Segments
ARI Key Railcar Markets - Two Largest Product Segments in the Railcar Industry* TANK RAILCARS • Product offerings include general service, pressurized, coiled, lined and insulated carbon steel or stainless steel railcars that are capable of transporting: • Chemicals • Ethanol • Food Products • Natur
Slide 6: ARI's Railcar Backlog
6 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Mar 2018 Railcar backlog for lease - - - 2,200 1,810 2,330 2,844 1,452 1,637 389 259 Railcar backlog for direct sale 4,240 550 1,050 4,330 5,250 6,230 8,888 5,629 2,176 1,551 2,885 - 2,000 4,000 6,000 8,000 1
Slide 7: Railcar Manufacturing Segment
7 • Flexible and labor efficient manufacturing facilities able to respond to customer delivery demands • Strategic locations near customers and major rail lines • Vertical integration from joint ventures and component manufacturing helps us to be cost competitive • Experienced team striving for exce
Slide 8: Railcar Leasing Segment
8 - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 $- $20 $40 $60 $80 $100 $120 $140 $160 2012 2013 2014 2015 2016 2017 Q1-18 TTM Revenue Lease Fleet(millions)• Disciplined lease strategy balancing mix of customers, commodities, acceptable market rates, and staggered lease terms • Relatively young lea
Slide 9: Railcar Services Segment
9 0% 5% 10% 15% 20% 25% $- $10 $20 $30 $40 $50 $60 $70 $80 $90 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1-18 TTM Revenue Operating Margin % (millions) Supporting both ARI’s lease fleet and customers' railcar needs, while gaining valuable industry insight Railcar Services Segment Supporting
Slide 10: Our Financial History
10 $808.8 $423.4 $273.6 $519.4 $711.7 $750.6 $733.0 $889.3 $639.1 $476.8 $478.4 $0.0 $200.0 $400.0 $600.0 $800.0 $1,000.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 2018 TTM^ Revenues related to railcars built for the Company's lease fleet are not recognized in consolidated revenues as rai
Slide 11: Our Financial History (continued)
11 $10.4 $0.0 $0.0 $29.4 $185.9 $162.1 $307.7 $211.6 $90.3 $163.8 $125.9 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 2018 TTM Lease Railcar CAPEX ($ mil) # Operational CAPEX ($ mil) $42.0 $15.0 $6.1 $6.2 $20.0 $22.0 $20.1 $36.6 $23.0 $7.2
Slide 12: Quarterly Financial Comparison
12 $192.0 $172.7 $260.9 $176.2 $150.5 $145.0 $167.5 $114.7 $109.0 $120.7 $132.4 $116.2 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 ^ Revenues related to railcars built for the Company's lease fleet are
Slide 13: Quarterly Financial Comparison (continued)
13 $5.0 $10.4 $11.1 $10.1 $4.4 $6.7 $4.8 $7.1 $1.6 $1.8 $1.4 $2.3 $0.8 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 $48.1 $84.5 $77.7 $1.3 $20.6 $12.8 $36.0 $20.9 $55.9 $47.9 $28.6 $31.4 $18.1 $0.0 $20.0
Slide 14: Exhibit A – Adj. EBITDA Reconciliation
14 In Thousands, unaudited Exhibit A – Adj. EBITDA Reconciliation
Slide 15: Exhibit A – Adj. EBITDA Reconciliation
Exhibit A – Adj. EBITDA Reconciliation EBITDA represents net earnings before income tax expense, interest expense (income) and depreciation of property, plant and equipment. The Company believes EBITDA is useful to investors in evaluating ARI’s operating performance compared to that of other compani
Slide 16: Exhibit B – Impact of 2017 Tax Act Reconciliation
16 In Thousands, except per share amounts, unaudited Exhibit B – Impact of 2017 Tax Act Reconciliation
Slide 17: Exhibit B – Impact of 2017 Tax Act Reconciliation
Exhibit B –Impact of 2017 Tax Act Reconciliation Net earnings excluding tax adjustments represents net earnings before a one-time adjustment related to the impact of the new Tax Cuts and Jobs Act of 2017 (the "2017 Tax Act"). The Company believes that net earnings excluding tax adjustments is a usef
Slide 18: A Tradition of Industry Leadership
A Tradition of Industry Leadership 18
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