RAIL - Earnings call transcript Q3 2018 | FreightCar America, Inc.

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Operator

Welcome to FreightCar America's Third Quarter 2018 Earnings Conference Call and Webcast. At this time all participants are in a listen only mode. [Operator Instructions] Please note this conference is being recorded. An audio replay of this conference call will be available from roughly 1 p.m. Eastern Time today until 11:59 p.m. X, December on Time XXXX. Eastern replay, To XXX-XXX-XXXX. dial access the please XXXXXX. The is replay passcode earnings the An within company's this the audio two call following also replay of will be available on days call. website the call now Financial of America. FreightCar to I'd over Officer like Matt Kohnke, to Chief turn

Matt Kohnke

welcome. Thank you, and

of future Ted remind call Joining me company disclaim which directed new of performance, to expressed be everyone Securities the events to to may events expected made this XXXX control may XXXX. from conference materially and statements. of of of that to future that We may America's Meyer, Commercial the Officer. future expressly future Participants Chief any Executive Reform a as President Litigation XX-K as statements description Form of prospects today some Chief and I'd FreightCar outside relating otherwise. or company's forward-looking the are actual a the or are result forward-looking Act information, include those differ Private Officer our whether duty defined for Jim results or Baun, cause in forward-looking to business statements, updates like certain risks, provide to during the under business plans statements

opening turn and now XX-K Jim? the the XXXX are call company's the to earnings posted remarks. Form XXXX me third over Our for on that, With website for release quarter few a let of at Jim www.freightcaramerica.com.

Jim Meyer

everyone, morning, Good thank joining you and today. for us

the the the of of discussion spend discussing over pushes most time, financial I to data, standard call, we some each pulls business recent Before that our and get top the would our on quarter. impacted and FreightCar commercial quarterly performance America's into at like the

pace. on well QX was solid our with a our and to continue the driving our we to quarter right broader most focused stay the quality into so result industry. performance performance reposition standpoint, third at transformation on highlights from agenda highest a a critical, Basics important and must why our to Clearly, forward in team and continues array items is Back the expectations on-time While of structure, our and our the why products business cost below in

comes However, willing our we do two with and of operational to to our take some only quarter. own this challenges. Not issues size we sell, requisite There continue of a were its accept need also customers we proceed, transform ourselves. that we bill be must transformation to impacted risk as care but primary as

environment. integration was felt by First, meet we pricing This the was further part in related This integration materials for alternate the caused from material the requirements than the steel need issue in to the our the $X.X quarter. by volatile purchase The now million function. behind us. higher Navistar is exacerbated approximately to one-time to latter pain costs sourcing a of delivery of expected and sources resulted and issue

efficiently. our key was with The the closely I relates Basics, specifically it Back second and our transformation, of to to and business to the that part as impacted issue categorize investment related quarter would it productivity associated more manufacture to a executed This an quarter. was in better changeover lost tooling much necessary we more model resulted enable important during processing, in engineering, type the car changeover us additional investment to and but

best-in-class that going opportunity is need are for our first this quality, to we the rate clarify build not As new creating changeovers all to model. a be impactful this and changeover our production results, now our want investment, productivity put time result under processing we of to I the capabilities. meeting but tooling planned on and to are each benchmarks

product gears discuss where shift portfolio and our to stands. like I'd Now

coal cars to discussed previously, our and allow expand years much shift our diversified a of in put important As work to product to from more portfolio engineering we have have us portfolio. teams to

right car and why achieve once to have the cases, fixture the are Back Basics meaningfully more, are right reasons to the Basics manufacturing the cost share the one plan. produce trend. to in positive defined in either or processes exceed not And the in This participated about is the are seeing uncompetitive designs economics Back designs in several insufficiently the uptick is offering structure. While why the products to market tooled the on of our in we expectations; market a cost not too recent customers' meet and slow we or

and modest underlying to XX an time, finishing the over This We work cost a the estimated have portfolio effort and relatively process the will market share as industry. supplier extremely backlog, to our definition tooling. be this strengthen lead our including to realignment. but solidify portfolio, fully economics, in our We months to gains best-in-class of complete expect left reputation to important

news. different to Moving

to that, that announce I quarter, as on serves who Dan recall business. business. will and Manager Leasing You our General plans Vice hired last we've of briefly Leasing to touched our President happy our Wallace, I'm expand

strategy of a in are leasing conclude, steps this you process look through initiative we we we of XXXX leader to develop. updating now setting marketplace right lot We progress together. working the Our issues business of the back-office by we to operational, in making. in but we the are the To way to the working along about is how forward fully are the systemic be hired need encouraged and years foundation. are to be that are and originate We coming to established deals. There are continues

will structure challenge a share. ups and Ted? That and downs product of will greater portfolio market over is our more and plan cost and the a I we third not discuss transformation as said, our a this is commercial will Our certainly for few the the to right be expand create we continue to quarter. there proceed. that, Ted one, to will With we simple call turn aspects competitive

Ted Baun

Jim. Thanks,

cars, new received new during down compared same is This XXX compared the received the orders for the and rebuilt XXX cars rebuilds. new built deliveries were XXXX to orders XXX to the railcars. to orders quarter, of of Sequentially, quarter same X,XXX This of all were quarter to the comprised We in third X,XXX in the new for which down XXX figures commercial Deliveries of deliveries in of railcars, railcars. were cars. third quarter. compares deliveries our previous railcars XXXX. XXX and all totaled sequentially of railcars leased which cars, in railcar XXX received quarter which the the the and newly compared we quarter new XXX during year, were delivered XXXX, XXX to these were of last down railcar XXX second Moving

compared $XXX our Our order September the estimated backlog approximately estimated total of value of consisted of with the quarter, end an backlog million, consisted XX, at to total an as value sales $XXX of which of railcars, sales XXXX with X,XXX million. approximately second down sequentially X,XXX of railcars,

Our last and railcars car quarter-end quarter last X,XXX year. compares third XX,XXX increased of XX. cars backlog for for the the figure to to September received orders and consists sale. ending railcars Industry-wide quarter rebuilt XXX car non-tank of non-tank new X,XXX manufactured to quarter orders in orders direct be XX,XXX This

the tank mostly term involving agreement for single leasing XX% industry While below attributable of order and cars. company by expectations orders, worth to non-tank our placed a all cars was long it tank were noting quarter, railcar substantially level is cars, that a

quarter, within non-tank these were of Looking a units few car specifically or orders concentrated at XX% X,XXX the the roughly among orders customers.

boxcars. stone, traffic existing commodities and freight such and intermodal strong Inquiry small-cube in in we XX% going product uncompetitive part levels of specific initiative recently, quarter facilities and addition, as remained excess covered but other open-top not of in supply orders important XXXX. To car of levels cars, covered plan subside with to as the us product for of the another moderating concentration hoppers, in within industry have confident cars railcars associated hopper to namely we a are summarize, In in been the medium-cube many types were commercial have gravel. of covered hoppers, flats, mix FreightCar type Several order while an that an sand car for forward. certain gondolas strong due hopper currently us, quarter orders non-intermodal the saw one segment, level rail large-cube segments remain combination third where and the were favorable such and planned and

important are categories and fine leasing business the We the soon tuning a have in to product portfolio car us become fully to those complement competitive products. will to

will It detail buyers of organization, have we to rate, our customers as right that, addition, third right as call financial the With so a that quarter over products cycle, he throughout customers Matt, to or on earlier. we the them I especially price railcars Jim In that our continue customer be obtain large as lease to like at turn those expectation will and interface the the would with improve results. these our base touched daily. is

Matt Kohnke

quarter. for XXXX in attributable Consolidated The compared million revenues delivered to Thanks, for second railcars larger the second quarter $XX increase and million compared to in quarter. in is third a of sale revenue $XX.X year quarter of quarter Ted. million last the the number to new direct totaled the third the $XX third

negative gross fell quarter third three due margin to factors. the X.X%, for to Our main

half during our favorably to year. by not we First, were which railcars second call, delivered, on as the mentioned previous the recur results on pricing we did the quarter impacted expect second of the

made investment accelerated incremental Second, than And associated labor processing we higher steel, transition. to with in higher prior encountered for and associated constraints material supply of integration the third, engineering, particular a costs, with primarily production as issue the we experienced Navistar result a the and tooling car type. much costs anticipated

this had on quarter. As the million Jim one-time $X.X mentioned, impact unfavorable a issue

material savings the The approximately in against the quarter. or us side $X.X mentioned In the line labor quarter, terms targeted associated cost earlier, extra with million, through third recognized worked per on cost were the P&L. $X,XXX railcar during the that changeover, of of I labor went

operating the between operating in quarter our expect we rate compares our per quarter. prior totaled $XXX,XXX $X.X of SG&A realize of $X.X to the consolidated second $XX.X gain commodity million, savings for the run The Danville the the compared the year. targeted and year continue of $X.X consolidated to of million to operating on for an million and period However, a included loss loss $X,XXX by price $XX.X to in still the approximately $X,XXX, the totaled million in which and of movements XXXX. facility. loss This sale the exclusive quarter of year-ago $X.X quarter ago end million million third period in car

result Our compensation SG&A as accrual. the a of of a both on elimination basis sequential and was year-over-year our lower incentive

contingency transition $XXX,XXX. CEO costs. $X.X of a patent Capital litigation, as a in for million SG&A charge quarter as related to million included expenditures XXXX totaled As $X.X reminder, the well

million $X between the $X.X For total and anticipate we figures full our CapEx million. year, to

with form Our financial was in of strong, cash as $XX.X securities of and equivalents, cash, certificates deposit XX. for first of restricted cash the million decrease debt position quarters marketable remains of and no The factors. September in position main XXXX of our restricted result X equivalents, outstanding the the three cash

short fleet we investment XXXX. lease our with million First, term $XX in railcars an delivered to of

will to when [attached assets sell to them] for related sense. opportunities We economics these the leases to look make continue and

third end an as Second, for on up ensure as new was on on the which material delays inventory of production well for orders material steps existing effective levels hand. hand to necessary took have orders, were we we already the elevated as at adequate the start on quarter

year-end levels. inventory to closer We to levels expect XXXX be year-end

of of timing the the to deliveries near due increased quarter. end the receivable accounts Finally,

back Although to for delivery almost to be I some levels closing receivable in would end similar remarks. quarter like were turn we accounts brief all October, XXXX With the year to levels based current third to plans. that, call [monies] expect these Jim the upon collected

Jim Meyer

little to Back me to to that right turn once producing the we are yet investors to you products cost. more We today. a in see where questions, and to our is so recall to the progress not right the through our are walk line and made we outline want transformation. let as where further about stand the Basics Before know at Basics that strategy able being the over Please I we Back more

shifted about business, and to steps we our Shoals fixing were year, assessing plans focus factory. people the with our initial of on board. our the starting Then Our bringing right formulating deployment, at new beginning this

this is productivity. things most recordable and tremendous a intended on significant some our that the progress is every We we reducing foundation in a at safety, reduction very and cost time, get our the manufacturing a that on efforts in consistent a progress to quality far three for push seen have have The in produce will made Shoals in quality and hours a efficiency, work hit have made from factory: enormous done, defects matter Shoals which has our [indiscernible] benefit our XX% line unit operational we in on reduction substantial to right. accidents build forward rates. bellwether once but

our is car getting As ramped cost overall and ramping the up portfolio reduction year, targeted the remain savings I akin but started year, of component cost bit the to a per year goal. next our in Basics being more our More delivery fact for still $X,XXX, reduction enhance to pace And Getting is very efforts. at recently, next another and product our you well the is Back seat This relatively to $X,XXX know, we bedrock of early for factory run able right Basics. run sourcing a to to target having to the mentioned to a we to not. $X,XXX to will competitively to portfolio while year allowed earlier. provide too us in Getting it's the effort and that Back by this difference the early recently, expectations on to attain right between be original we manufacturing rate cost up strategic table raise to important or price that efficiencies.

table. year heavy-lifting when at let of a Next our complete, Basics many Back piece us will this of full to be engineering for But more the will seats team. year

and to asset large too this will our that We mismatch cost. our We our fixed that operational the facility at and purchase fact rail involving reduce as made are efficiencies have that want shareholders is Shoals. to measures sale further are we of additional Danville of the the of footprint know Today, Navistar's working only improve. increase critical our we operations plant and also our decisions on manufacturing very cognizant closure

we growing We cost structure, of be are product in railcar that operator under With transformed and XX another the now a expect much months to months. At transformation prepared competitive you. turn improved lifting XX remarks our arm, Q&A. over that, conclude platform Thank I'd and like heavy business have our our between significantly the through will company's the provider. be point, the to we and fuller for leasing operations, to portfolio call to

Operator

question first King. CL from the [Operator line Michael of with Instructions] And our come will Gallo

Michael Gallo

not, that your Jim, or just basis on to it delve some out really have XXX in And if on you another that do current environment? that, get enough you cost don't to take plan need be have competitive price with comments. competitive? or further through is when points you're you'll in to to product? to take look think what and sit to competitive get a guess the little you Or you well Obviously, make do control you reduction, be target some you a points cars some of year the will you bit pieces additional moving refinement back of basis the and you as you at on really have, to think, costs other things. I XXX as to steps what some

Jim Meyer

a come which where lots Mike, between between we started, more our the that much do. were Is we and $X,XXX work where to reduction start I to that the And we No. a a difference year, we we to when that then where to We've announced was as cost ultimate expect is very want presented at we start. never that could which believe, was It of the was competitiveness? to $X,XXX we we $X,XXX difference start this was be. achieve a year. year. target got car, believe originally, ultimately realistically as to out raised this target $X,XXX, got It

labor said is very year as really and Next and of important cost comments, reduction material I productivity going to to then reduction, product another gains. cost my be, that's referring in year

addressed. cost fixed manufacturing have be also need We to that

to So, quickly piece right cost the about no having the products it priced business. than right It's else's translates which no, the our at right anyone the is of and structure. business price, different

we're X rest again But period certainly it work at months next to going much over the we're achieved I'm So, amount it with -- of being cost very this of pleased now. be of the we've about at after really all very very reduction year. the and time, next year for of

Operator

go to we Long Next, line Justin the of with Stephens.

Justin Long

Are quarters in the of to market, can visibility in you XXXX? rate. the So, backlog, as thinking about two current a you rate fourth the Or production similar keep to enter about increase there's at down planning based the you're there chance ramp resources build like do production levels we looks and a are at you expecting think quarter? on the what it run

MattKohnke

cars those at we order continue XXXX, be out. in some the there's the we'll forward production available. needed set backlog, I'll operation as yes, level delivered spaces for build related in and and let backlog other on say, you to as As to that look look requirements the the comment resource to Ted to rates the,

Ted Baun

positive Ted Justin. the see the of here. Sure, with remain marketplace. number inquiries We we in

continues. still railcars. on I inquiries quarters those lot those the past finish to inquiries, reported hesitant line? of the couple think can we've them we rise; to meaning have quality of any over get been The the make folks of are decisions that A that on

get us, it customers a to just at to with them do and day we're table. to every of that we're the got and want we've lot So trying business

Justin Long

there's do how you balance expect in gave year of balance and changes that to on kind or double where see today, of to year? all we the look And before sheet towards end? Do end. you time you back if beginning at to year that it could you expect of the But a by chance that we was some some think meet helpful the get you equivalents color trend this balance cash

Matt Kohnke

uses at to out increase of We'll play, see puts from cash of I again, levels. come of the -- in timing of would we'll it not and components the see could it expect see deliveries certainly cash -- some end the receipts of third quarter expect that double, called especially takes I to the but always it into the fourth of main and and But backlog, year. the the quarter.

Justin Long

mentioned about you in just give you can of the I'll that? and We've question around from Has gotten manufacturers, back some pricing competition from here continued would little it me color a you heard the more hop last competitive us other And the last pricing months? environment. more How but competitive extremely and was queue, still just an bit then the Is it in environment characterize it? few competitive? but stable

Ted Baun

competitive. here, say It's been been to I not all, lines. if most, any last the product gotten XX would pricing on competitive that time it's competitive during Ted that or Justin. don't quite has less I more for think XX months.

keep a So by on close deal it's that something that basis. we deal on and a eye evaluate

Operator

have we next a Cowen. line from of the Matt with question And Elkott coming

Matt Elkott

at cars over manufacturer seeing in hearing get some evidence the cars lead to or guys non-tank other lines any escalating? inquiries manufacturers car to on are to probably guys, XXXX, you tank manufacturers of coming times months. Ted, any that you orders ready car as switch to the seeing we're X to to -- tank Are of are you ballooning tank evidence up XX

Ted Baun

We've the here. good cars. heard tank it. the Ted things seen question. on It's Matt, same a We've

well that be there only As product we're product then those to there quarter But non-tank types there market. the might are that out. certain are or in to a with not types know, tank and cars, as the respect out stretch levels, you two car

is up opportunities. it's appear capacity a filling does case-by-case should it basis. that and overall that So present Ideally,

Matt Elkott

cycle time had helps Because, were that lot manufacturers if making cars build in other and energy busy was a you a for you even cycle frac the you I sand last participate correctly, good are at guys that of car tank non-energy tank busy the orders equipment remember lot a you tank car market, don't during we you. a -- guys the for got -- cars, but the boom, crude-by-rail though and orders and

it's guess possible car around, time would I build this So happen that this cycle. another we tank if have

Ted Baun

to possible. certainly see how have We'll Yes, all just wait to out. it's plays that

Matt Elkott

cost as this is Or -- that to maybe you well guys you more on behind on business? you that the this the side. for think think Jim, efforts, upturn? longer this rationale does as new term, to do one leasing that you do a is have that conventional encouraging And see there But sustainable And are appointing model is enough side? think it's all -- efforts Jim. with leasing a downturn is an the the these making component be to leadership in the

Jim Meyer

A couple of comments.

when cost only cycle turn the work cost for is is structure in the through and making believe in in all, not earn position we're we around down what down to get to cycle, to not good where a in good we that's a the no business, to back here, keep have of this goal the lets First there's goal cycles, money that's possible. in cycle complete a be reason and our a a then relatively it around structure unhurt give not that and us

it what your Matt, that's -- sort part my on sorry, comments quick second sustainable. is of what So of I'm I question? And guess the was

Matt Elkott

to if cyclicality the I more was just a needs offset there conventional to of of component asking manufacturing. kind leasing be

Jim Meyer

Yes.

more a very at know, that'll what proportionate expectation we're one us. no on go we'll it approach. you ramp from to bring to here, the provides been a our leasing, us, be competitors. is time, We've trying [indiscernible] of to being means lot size step down business supplier the So and well as benefits a right now, as economics of to believe, is internally we got objectives leasing see step it to both least takes just volume. to more to to in well But overall for the manufacturing at from at That's business for one some and And competitors that the get it targeted we're going give kind by and to of operations. all of overall have to as some process It's as our the where smoothing now conventional a time basis we've -- picking the at of as up accretive not moment. a and of manufacturing do our as

So which why everybody there it. is is doing out

So we're going step and a see to at it one takes go time us. where

Matt Elkott

quick And went one backlog I believe, in up, The ASP quarter. just the last question.

So was that all steel? like And if so, is ASP there any steel? way have would to for gauge what looked the adjusted

Ted Baun

Matt, a factor product. a or it it's result of mix of is just

Operator

come Global. Next with Milby ahead. Seaport question will from Willard go Please

Willard Milby

Wanted maybe to offerings? the portfolio quarter, front. it more that cost there. in reducing is your the kind cars Is sounds you of the, competitiveness increasing It restructuring talk talk maybe broadening of about the car hit like in specialized the kind about specialization? portfolio Can you restructuring changing on mix I and what some guess, the of

Jim Meyer

Jim, This Willard. is Yes.

product some clarifications the to me put about portfolio. we're what Let around exactly try talking with

family that were clearly FreightCar a we to positioned. to want where we have take be We designs how us from

we or and Basics. cars our designs We to our cars. we expectation customer other But can't. to under can expectations, that good we competitive and have some In produce those economic produce those exceed cases, cases, satisfaction in meet Back can

the expectations engineering investing to so the paint facility to designs a we when cost we're enhancements we them they're and talking fixturing about to talking on you that we good us competitive to instance, getting what business. in to so the efficient, to our and can going process in or about repeatable in improvements in we're tooling the portfolio enhancement for, where really enable further in pellet want term the plastic basis, further lining be have however engineering, about better cases, And We're the get some We factories. to competitive it, complete facilities. car be process, talk

taking products to making we Back them have and it's produce can So, and Basics umbrella. to expectations about targets so under the our our we that

Willard Milby

be the leased maybe of sell remarks, little that this assets for was levels are balance remain on your thought flat expected you this a to sold? that those the quarter? touched leased in think prepared getting what your remaining on to plans something but kind on Or you'd quarter-over-quarter, I you those sheet is And while? at cars in able

Matt Kohnke

sale. Thanks to have made for Matt. this found have question. We in just at for point it's Willard, be the and our lease the made short continue term economics sell railcars transaction to where The we sense marketed haven't the that portfolio available it.

railcars out rental However, continue when us And we'll for in those trigger the consistent do leased generating to makes pull sense a economics that income and stream, the to sell, are we'll and future. revenue so there the at time.

Willard Milby

all on on And those any future that And production steel help pass-throughs able thing was And at you are be this from help to headwinds there is kind as there me, front? the coming quarter, steel I'm assuming contracts during look deliveries? had moderated sourcing Or last those -- been built at you're -- for all any QX? have in. order your of largely,

Jim Meyer

can but cost place, or and variation to a a are is standpoint. from Jim is long tough very, in also to in produces situation fluctuation every in steel we the in and I through. it's cost aluminum, be so that U.S. XXX the tariff macro know from challenging. from is with level, challenging this, And again. the the have lift and in going manufacturer best even U.S. quite It's On standpoint, day-to-day tariffs overall that as a with something competitors -- America probably like and as the North and we're the This an like so our steel going standpoint, knows availability environment and it's And more we, very us, and it's do a frankly, very particular. everybody to challenging

could would the that acquisition. as us. large, thing always us was The was go, we associated more it, is and it event about had worth to emphasize, us. issue top to that any and piece with there asset Unfortunately, and And that they a on quarter was and for caught on quarter, this want Navistar this as that it again one-time acquisition nature it just difficult. it the of that the it, other of of of well is to unique And thing [indiscernible] truly was By hoped tied went I specific a one-time it that of as was million giving was mentioned, in that $X.X issue about everything do. piece of steel truly Matt kind

Willard Milby

what's SG&A about? Actually, in, housekeeping forward, a sneak if number think could just run rate going I one more good to

Matt Kohnke

the incentive we take been that that most year. compensation it's for and add rate. back reduction of you that Yes. really had and to that hit about this I gets close that SG&A now And existing level probably probably the

Operator

the Stifel. And the Mike last with line question comes from Baudendistel of

Mike Baudendistel

trying FreightCar why OEMs? have you of where full niche ask would have times mean, a that industry. Just does be orders context were that bit quicker? Just situation a little but the those wanted the about your a up understand America get do car? lead under I And get of to lot in just car trying you the with for, quarter. and competitors can someone specific come certain to the of larger there understand a you and you're deals would of a And in orders circumstances are I one to do to in to long the some versus Or it have what set not candidate things. better the a

Ted Baun

received we orders categories. the the comprised broad it at car X look type in you actually quarter, different When

were not the beating mentioned, that. though. quantity pleased that I or much a below we of a at beyond order -- our So base happened. up basis. was We're were have I what well ourselves the sideline. mean, a X look number was cars. we that X, with large Obviously large There as that, but on There's X placed X, X,XXX And broader multi-year interested is there been customer a customers expectations. that on placed

just across very products. now day. customers. we're customers matter dialog them. So relationships every getting and we good with active have at We're in a like the it finish those our Those It's with of line,

as quarter-to-quarter, in the nothing in So has reported that it's past, we've changed regard.

matter a haven't getting folks to of want, the here. customers products, that and good We that ordered those have just the table it's products

Jim Meyer

Mike, Jim. this is

wanted all to little And have be perform going bit, intake in right we're back dialed we bad. But a a to add on think said, took the third to until that the our to at wasn't approximately order a than second XXX% business I products cost, is especially tougher quarter. right you that the with look we in we to be. at clearly that orders, it's the quarter where that X,XXX disappointed in Just

to we our place to to get Back it can, so our to it -- for do have but quickly Basics have is again, to as, the very as So term. we And QX say, lumpy on we right do business when sound cost going goal as in and the that products right will as the we we're -- a through QX intake. won't structure, order right have it long be

Mike Baudendistel

you've just because to is lost you mean, you able party a wanted thinking been leasing. like it there. on to of shop not just like go not past? the being I third sort the place Am capability as have you of think have sort any wants a right? greater that in than -- that wanted about customer in if to that and then making sales sales for tool, I to, a one-stop leasing? a the And And I to leasing because have ask effort of seems you're

Jim Meyer

customers principally This is are ways. want to to offering are look a both Jim, that a I'll customers jump business, out let deficits to a want seller comes that as obviously a that there lease, there that it. Ted out and some seller There want not out are leaser as to and being at compared there past known in a again, the a with there then customers there second. and and somebody both. we're leasing not in why deal Being That's doing purchase,

of about whole Ted, do the bring an the whole we table. at to manufacturing. revenue leasing table, management success that? at incremental just not seats as benefits about you and one forward, want portfolio going it's the this is, add online, creating company the of here the incremental It's it's So way it's more benefits about also idea more more to stream, home

Ted Baun

we respect say just have lost with I'll Yes. deals. to

aggressive to Typically originated put where if liked deals basis, them. we would historically, past, lost we lease. look had the sole our as -- the cases we on would able it's think, quarter-over-quarter a as I there get have been have railcars certainly, we have to weren't we with several in deals because of in these flipping purpose

conservatism there's a longer into model. that that, different a with So term outlook. more have we'll approach, of with And built level a now

Operator

there queue. in time, this further the questions at no are And

Jim Meyer

support company. Thank you, day. your your time and for for our a Have great you. Thank continued again, today in

Operator

conclude you for will for that for and gentlemen, Teleconference. participation AT&T conference using your our and today. Ladies Thank

You disconnect. may now

FreightCar America (RAIL) 3 Nov 182018 Q3 Earnings call transcript