FreightCar America (RAIL) 8-K FreightCar America, Inc. Reports Third Quarter 2009 Results

Exhibit 99.1

INVESTOR AND MEDIA CONTACT	Chris Nagel
TELEPHONE	(800) 458-2235

FOR IMMEDIATE RELEASE       November 6, 2009

FreightCar America, Inc. Reports Third Quarter 2009 Results

Chicago, IL, November 6, 2009 — FreightCar America, Inc. (NASDAQ: RAIL) today reported net income of $1.1 million, or $0.09 per diluted share, for the three months ended September 30, 2009 on revenues of $55.1 million. For the second quarter of 2009, the Company generated sales of $104.3 million and net income of $7.0 million, or $0.59 per diluted share. For the third quarter of 2008, the Company generated sales of $238 million and net income of $10.0 million, or $0.85 per diluted share.

There were no net orders for new railcars in the third quarter of 2009, compared to 694 units ordered in the second quarter of 2009, and 2,329 units ordered in the third quarter of 2008. Railcar deliveries totaled 695 units in the third quarter, compared to 1,207 units delivered in the second quarter of 2009 and 3,082 units delivered in the third quarter of 2008. Total backlog of unfilled orders was 777 units at the end of the third quarter, compared with 1,472 units at the end of the second quarter of 2009 and 4401 units at the end of the third quarter of 2008.

“The decline in order activity in the quarter illustrates that the market for new railcars remains very challenging. However, I believe we are performing well in a difficult environment,” said Chris Ragot, President and CEO.

“With little visibility to a recovery in the new car market, the preservation of cash and our strong balance sheet continues to be a high priority for us. Cash and investments on-hand at the end of the quarter were approximately $134 million. Additionally, our two credit facilities are still undrawn.”

Cash on-hand at the end of the second quarter of 2009 was $152 million. The decrease in cash during the quarter was due to an increase in inventory due to the timing of orders and a $12.1 million pension contribution.

Selling, general and administrative expenses for the third quarter of 2009 were $6.6 million, compared to $6.7 million in the second quarter of 2009 and $7.2 million in the third quarter of 2008. Mr. Ragot stated, “Given the difficult outlook for 2010, we are taking immediate steps to further reduce costs. These actions include additional headcount and salary reductions and limits on outside services, which will result in a further meaningful reduction in spending.”

The gross margin rate for the third quarter of 2009 was 12.5% compared to 15.3% for the second quarter of 2009 and 9.5% for the third quarter of 2008. The decrease in the rate from the previous quarter was due to lower margins on new car sales. The increase in gross margin rate compared to the prior year was due to an increase in parts sales and leasing revenues, which carry higher margins than new car sales.

As of September 30, 2009, the Company’s net investment in railcars under operating leases was $62 million, compared to $71 million at the end of the second quarter of 2009 and $36 million at the end of the third quarter of 2008. Year to date, the Company has invested $91 million in new railcars under leases and generated cash proceeds from the sale of leased railcars of $76 million.

Mr. Ragot closed by stating, “We continue to pursue several strategic initiatives to broaden and strengthen our revenue sources, including refurbishment, after-market parts and services and international expansion. We believe that patience will be rewarded as the railcar market continues to be soft, and we will be prudent in investing in opportunities as they present themselves.”

The Company will host a conference call on Friday, November 6, 2009 at 11:00 a.m. (Eastern Standard Time) to discuss the Company’s third quarter financial results. To participate in the conference call, please dial (800) 398-9379. Interested parties are asked to dial in approximately 10 to 15 minutes prior to the start time of the call.

An audio replay of the conference call will be available beginning at 1:00 p.m. (Eastern Standard Time) on November 6, 2009 until 11:59 p.m. (Eastern Standard Time) on December 4, 2009. To access the replay, please dial (800) 475-6701. The replay pass code is 121923. An audio replay of the call will be available on the Company’s website within two days following the earnings call.

FreightCar America, Inc. manufactures railroad freight cars, with particular expertise in coal-carrying railcars. In addition to coal cars, FreightCar America designs and builds bulk commodity cars, flat cars, mill gondola cars, intermodal cars, coil steel cars and motor vehicle carriers. It is headquartered in Chicago, Illinois and has manufacturing facilities in Danville, Illinois and Roanoke, Virginia. More information about FreightCar America is available on its website at www.freightcaramerica.com.

This press release contains statements that are “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. These potential risks and uncertainties include, among other things: the cyclical nature of our business; adverse economic and market conditions; fluctuating costs of raw materials, including steel and aluminum, and delays in the delivery of raw materials; our ability to maintain relationships with our suppliers of railcar components; our reliance upon a small number of customers that represent a large percentage of our sales; the variable purchase patterns of our customers and the timing of completion, delivery and acceptance of customer orders; the highly competitive nature of our industry; the risk of lack of acceptance of our new railcar offerings by our customers; and the additional risk factors described in our filings with the Securities and Exchange Commission. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise. More information about FreightCar America is available on its website at www.freightcaramerica.com.

FreightCar America, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)

	September 30,			December 31,
	2009			2008
				(as restated)
	(In thousands)
Assets
Current assets Cash and cash equivalents	$	113,691		$	129,192
Securities available for sale, at fair value		19,986			—
Accounts receivable, net		2,259			73,120
Inventories		56,191			31,096
Leased railcars held for sale		9,528			11,490
Property, plant and equipment held for sale		2,461			—
Other current assets		8,270			6,789
Deferred income taxes ,net		15,404			16,003
Total current assets		227,790			267,690
Property, plant and equipment, net		28,852			30,582
Railcars on operating leases		52,334			34,735
Goodwill		21,521			21,521
Deferred income taxes		11,923			23,281
Other long-term assets		4,843			5,484
Total assets	$	347,263		$	383,293
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	27,604		$	47,328
Accrued payroll and employee benefits		4,762			9,530
Accrued postretirement benefits		5,364			5,364
Accrued warranty		10,403			11,476
Customer deposits		2,590			7,367
Other current liabilities		5,719			7,939
Total current liabilities		56,442			89,004
Accrued pension costs		15,669			26,763
Accrued postretirement benefits, less current portion		53,805			55,293
Other long-term liabilities		6,431			7,407
Total liabilities		132,347			178,467
Stockholders’ equity
Preferred stock		—			—
Common stock		127			127
Additional paid in capital		97,603			98,253
Treasury stock, at cost		(36,926	)		(38,871	)
Accumulated other comprehensive loss		(16,086	)		(16,471	)
Retained earnings		170,027			161,687
Total FreightCar America stockholders’ equity		214,745			204,725
Noncontrolling interest in India JV		171			101
Total stockholders’ equity		214,916			204,826
Total liabilities and stockholders’ equity	$	347,263		$	383,293

FreightCar America, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2009			2008		2009			2008
				(as restated)					(as restated)
	(In thousands, except share and per share data)
Revenues	$	55,131		$	238,008	$	199,022		$	474,441
Cost of sales		48,252			215,420		165,865			435,234
Gross profit		6,879			22,588		33,157			39,207
Selling, general and administrative expense (including non-cash stock-based compensation expense of $563 $608, $1,654 and $2,301, respectively)		6,595			7,207		20,630			23,076
Plant closure charges (income)		—			268		(495	)		20,133
Operating income (loss)		284			15,113		13,022			(4,002	)
Interest (expense) income, net		(210	)		632		(505	)		2,523
Operating income (loss) before income taxes		74			15,745		12,517			(1,479	)
Income tax (benefit) provision		(971	)		5,702		2,101			(900	)
Net income (loss)		1,045			10,043		10,416			(579	)
Less: Net loss attributable to noncontrolling interest in India JV		(24	)		—		(72	)		—
Net income (loss) attributable to FreightCar America	$	1,069		$	10,043	$	10,488		$	(579	)
Net income (loss) per common share attributable to FreightCar America— basic	$	0.09		$	0.85	$	0.88		$	(0.05	)
Net income (loss) per common share attributable to FreightCar America— diluted	$	0.09		$	0.85	$	0.88		$	(0.05	)
Weighted average common shares outstanding - basic		11,867,314			11,809,024		11,859,361			11,776,503
Weighted average common shares outstanding - Diluted		11,875,748			11,841,236		11,864,161			11,776,503
Dividends declared per common share	$	0.06		$	0.06	$	0.18		$	0.18

FreightCar America, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)

	Nine Months Ended
	September 30,
	2009			2008
				(as restated)
	(In thousands)
Cash flows from operating activities
Net income (loss) attributable to FreightCar America	$	10,488		$	(579	)
Adjustments to reconcile net income to net cash flows used in operating activities:
Plant closure charges		—			20,133
Depreciation and amortization		4,024			3,215
Other non-cash items		2,359			(268	)
Deferred income taxes		11,722			(7,811	)
Compensation expense under stock option and restricted share award agreements		1,653			2,301
Noncontrolling interest in India JV		70			—
Changes in operating assets and liabilities:
Accounts receivable		70,861			(55,252	)
Inventories		(27,075	)		(65,669	)
Leased railcars held for sale		(7,948	)		(705	)
Other current assets		(197	)		(6,174	)
Accounts payable		(19,108	)		74,948
Accrued payroll and employee benefits		(4,768	)		(4,178	)
Income taxes receivable/payable		(1,789	)		7,398
Accrued warranty		(1,073	)		752
Other current liabilities and customer deposits		(6,964	)		10,910
Deferred revenue, non-current		(599	)		—
Accrued pension costs and accrued postretirement benefits		(12,204	)		(6,163	)
Net cash flows provided by (used in) operating activities		19,452			(27,142	)
Cash flows from investing activities
Purchase of securities available for sale		(19,967	)		—
Cost of railcars on operating leases produced or acquired		(8,758	)		(35,201	)
Purchases of property, plant and equipment		(4,047	)		(4,117	)
Net cash flows used in investing activities		(32,772	)		(39,318	)
Cash flows from financing activities
Payments on long-term debt		(28	)		(48	)
Deferred financing costs paid		(5	)		(969	)
Issuance of common stock		—			627
Cash dividends paid to stockholders		(2,148	)		(2,139	)
Net cash flows used in financing activities		(2,181	)		(2,529	)
Net decrease in cash and cash equivalents		(15,501	)		(68,989	)
Cash and cash equivalents at beginning of period		129,192			197,042
Cash and cash equivalents at end of period	$	113,691		$	128,053