American Railcar Industries, Inc. Reports Strong First Quarter 2013

American Railcar Industries, Inc. Reports Strong First Quarter 2013

First Quarter 2013 Highlights

  *Consolidated Revenues totaled $195.1 million
  *Adjusted EBITDA of $42.8 million
  *Net earnings of $0.84 per share
  *Railcar shipments of approximately 1,900 railcars

ST. CHARLES, Mo., April 24, 2013 (GLOBE NEWSWIRE) -- American Railcar
Industries, Inc. (ARI or the Company) (Nasdaq:ARII) today reported its first
quarter 2013 financial results. "We are pleased with another strong quarter of
operating results, driven by strong shipments of tank railcars, which provided
us with a favorable sales mix and good earnings," said James Cowan, President
and CEO of ARI.

First Quarter Summary

Total consolidated revenues were $195.1 million for the first quarter of 2013,
up 7% when compared to $181.6 million for the same period in 2012. Revenues
increased primarily due to an increase in revenues for the manufacturing and
leasing segments.

Manufacturing segment revenues were $228.4 million for the first quarter of
2013, an increase of 8% over the $211.9 million for the same period in 2012.
The primary reason for the increase was a shift in the sales mix to more tank
railcars, partially offset by a decrease in the volume of hopper railcar
shipments. Manufacturing segment revenues for the first quarter of 2013
included estimated revenues of $55.4 million related to railcars built for the
Company's lease fleet, compared to estimated revenues of $47.5 million in the
first quarter of 2012 related to railcars built for the lease fleet. Such
revenues are based on an estimated fair market value of the leased railcars as
if they had been sold to a third party, and are eliminated in consolidation.
Revenues for railcars built for the Company's lease fleet are not recognized
in consolidated revenues as a railcar sale, but are recognized over the term
of the lease in accordance with the monthly lease revenues. Railcars built for
the lease fleet represented 28% of ARI's railcar shipments during the first
quarter of 2013 compared to 21% for the same period in 2012.

Leasing segment revenues were $6.5 million for the first quarter of 2013, an
increase of $5.1 million over the $1.4 million for the same period in 2012.
The primary reason for the increase in revenue was an increase in the number
of railcars on lease. We had approximately 3,120 railcars in the Company's
lease fleet at the end of the first quarter of 2013, compared to approximately
950 railcars at the end of the same period in 2012.

Consolidated earnings from operations for the first quarter of 2013 were $31.2
million, an increase of 31% over the $23.8 million for the same period in
2012. Operating margins were 16% for the first quarter of 2013 compared to 13%
for the comparable quarter of 2012. The increase in consolidated earnings was
primarily due to an increase in the Company's manufacturing earnings from
operations, partially offset by an increase in the Company's selling, general
and administrative expenses driven by an increase in our share-based
compensation expense, as a result of a significant increase in our stock
price. The Company's share-based compensation fluctuates with our stock price.
In the first quarter of 2013, our stock price increased approximately $15 per
share compared to the stock price remaining flat during the same period in
2012.

Manufacturing earnings from operations were $43.8 million for the first
quarter of 2013 compared to $34.1 million for the same period in 2012. This
increase was due primarily to a higher mix of tank railcars as well as
operating leverage and efficiencies achieved as a result of strong tank
railcar production volumes, partially offset by lower hopper railcar
shipments. The Company also continued to benefit from cost savings achieved by
the vertical integration projects put in place during the past several years.
Manufacturing earnings from operations for the first quarter of 2013 included
$9.8 million of estimated profit on railcars built for the Company's lease
fleet, which is eliminated in consolidation and is based on an estimated fair
market value of revenues as if the railcars had been sold to a third party,
less the cost to manufacture.

EBITDA, adjusted to exclude share-based compensation and other income on short
term investments (Adjusted EBITDA), was $42.8 million for the first quarter of
2013 compared to $30.3 million for the comparable quarter of 2012. The
increase resulted primarily from increased earnings from operations, partially
offset by losses incurred by the Company's joint ventures. The joint venture
loss is largely due to softer railcar demand for railcar types other than tank
railcars, which adversely impacted demand for the Company's domestic joint
venture products. A reconciliation of the Company's net earnings to EBITDA and
Adjusted EBITDA (both non-GAAP financial measures) is set forth in the
supplemental disclosure attached to this press release.

Cash Flow and Liquidity

The Company's strong earnings have contributed to cash flow from operations in
the first quarter of 2013 of $18.6 million. As a result of continued growth of
the Company's lease fleet and redemption of the remaining $175 million of
senior unsecured notes during the first quarter of 2013, the Company's cash
balance was $56.0 million at March 31, 2013. The Company anticipates making
the final draw of $50 million in May 2013 under the lease fleet financing put
in place in December 2012.

At the board meeting in April, the Company's board of directors declared a
cash dividend of $0.25 per share of common stock of the Company to
shareholders of record as of June 17, 2013 that will be paid on June 27, 2013.

Backlog

ARI's backlog as of March 31, 2013 was approximately 6,400 railcars, including
approximately 2,080 railcars for lease. ARI had approximately 7,060 railcars
in its backlog as of December 31, 2012, including approximately 1,810 railcars
for lease.

Conference Call and Webcast

ARI will host a webcast and conference call on Thursday, April 25, 2013 at
10:00 am (Eastern Time) to discuss the Company's first quarter 2013 financial
results. To participate in the webcast, please log-on to ARI's investor
relations page through the ARI website at www.americanrailcar.com. To
participate in the conference call, please dial 877-745-9389. Participants are
asked to log-on to the ARI website or dial in to the conference call
approximately 10 to 15 minutes prior to the start time. An audio replay of the
call will also be available on the Company's website promptly following the
earnings call.

About ARI

ARI is a leading North American designer and manufacturer of hopper and tank
railcars. ARI and its subsidiaries sell and lease railcars manufactured by the
Company to certain markets. In addition, ARI repairs and refurbishes railcars,
provides fleet management services and designs and manufactures certain
railcar and industrial components. ARI provides its railcar customers with
integrated solutions through a comprehensive set of high quality products and
related services. More information about American Railcar Industries, Inc. is
available on its website at www.americanrailcar.com.

Forward Looking Statement Disclaimer

This press release contains statements relating to expected financial
performance and/or future business prospects, events and plans that are
forward-looking statements. Forward-looking statements represent the Company's
estimates and assumptions only as of the date of this press release. Such
statements include, without limitation, statements regarding industry trends,
customer demand for the Company's products, the Company's strategic objectives
and long-term strategies, the growth of the Company's leasing business,
anticipated future production rates, the Company's plans regarding future
dividends, the Company's joint ventures, the Company's backlog and any
implication that the Company's backlog may be indicative of future revenues.
These forward-looking statements are subject to known and unknown risks and
uncertainties that could cause actual results to differ materially from the
results described in or anticipated by the Company's forward-looking
statements. The payment of future dividends, if any, and the amount thereof,
will be at the discretion of ARI's board of directors and will depend upon the
Company's operating results, strategic plans, capital requirements, financial
condition, provisions of its borrowing arrangements, applicable law and other
factors the Company's board of directors considers relevant. Other potential
risks and uncertainties include, among other things: basing financial or other
information on judgments or estimates based on future performance or events;
the impact of an economic downturn, adverse market conditions and restricted
credit markets; ARI's reliance upon a small number of customers that represent
a large percentage of revenues and backlog; the health of and prospects for
the overall railcar industry; prospects in light of the cyclical nature of the
railcar manufacturing business; the highly competitive nature of the railcar
manufacturing industry; the conversion of ARI's railcar backlog into revenues;
anticipated trends relating to shipments, leasing, railcar services, revenues,
financial condition or results of operations; the Company's ability to manage
overhead and variations in production rates; fluctuating costs of raw
materials, including steel and railcar components and delays in the delivery
of such raw materials and components; fluctuations in the supply of components
and raw materials that ARI uses in railcar manufacturing; the risk of being
unable to market or remarket railcars for sale or lease at favorable prices or
on favorable terms or at all; the anticipated financing needs, the ongoing
benefits and risks related to the Company's relationship with Mr.Carl Icahn
(the chairman of the Company's board of directors and, through his holdings of
Icahn Enterprises L.P., the Company's principal beneficial stockholder) and
certain of his affiliates; the anticipated production schedules for our
products and the anticipated financing needs, construction and production
schedules of our joint ventures; the risks associated with potential joint
ventures, potential acquisitions or new business endeavors; the
implementation, integration with other systems or ongoing management of the
Company's new enterprise resource planning system; the international economic
and political risks related to ARI's joint ventures' current and potential
international operations; the risk of the lack of acceptance of new railcar
offerings by ARI's customers and the risk of initial production costs for the
Company's new railcar offerings being significantly higher than expected; the
sufficiency of the Company's liquidity and capital resources; compliance with
covenants contained in the Company's Lease Fleet Financing; the impact and
anticipated benefits of any acquisitions ARI may complete; the impact and
costs and expenses of any litigation ARI may be subject to now or in the
future; and the additional risk factors described in ARI's filings with the
Securities and Exchange Commission. The Company expressly disclaims 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. 

AMERICAN RAILCAR INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
                                                                
                                                     March 31,   December 31,
                                                     2013        2012
                                                     (unaudited) 
Assets                                                           
Current assets:                                                  
Cash and cash equivalents                            $56,004   $205,045
Short-term investments - available for sale          --         12,557
securities
Accounts receivable, net                             32,348     36,100
Accounts receivable, due from related parties        13,659     3,539
Income taxes receivable                              1,581      --
Inventories, net                                     86,263     110,075
Deferred tax assets                                  9,126      4,114
Prepaid expenses and other current assets            5,149      3,917
Total current assets                                  204,130    375,347
                                                                
Property, plant and equipment, net                    157,376    155,893
Railcars on operating lease, net                      261,845    220,282
Deferred debt issuance costs                          2,032      2,374
Goodwill                                              7,169      7,169
Investments in and loans to joint ventures            43,179     44,536
Other assets                                          7,774      4,157
Total assets                                          $683,505  $809,758
                                                                
Liabilities and Stockholders' Equity                             
Current liabilities:                                             
Accounts payable                                     $44,526   $64,971
Accounts payable, due to related parties             770        2,831
Accrued expenses and taxes                           8,728      8,432
Accrued compensation                                 17,261     17,940
Accrued interest expense                             271        4,465
Short-term debt, including current portion of        4,995      2,755
long-term debt
Total current liabilities                             76,551     101,394
                                                                
Long-term debt, net of current portion                144,677    272,245
Deferred tax liability                                68,141     53,466
Pension and post-retirement liabilities               9,151      9,518
Other liabilities                                     4,335      3,670
Total liabilities                                     302,855    440,293
                                                                
Commitments and contingencies                                    
                                                                
Stockholders' equity:                                            
Common stock, $0.01 par value, 50,000,000 shares
authorized, 21,352,297 shares issued and outstanding  213        213
as of both March 31, 2013 and December 31, 2012
Additional paid-in capital                            239,609    239,609
Retained earnings                                     142,629    130,030
Accumulated other comprehensive loss                  (1,801)    (387)
Total stockholders' equity                            380,650    369,465
Total liabilities and stockholders' equity            $683,505  $809,758


AMERICAN RAILCAR INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts, unaudited)
                                                                
                                                   For the Three Months Ended
                                                   March 31,
                                                   2013          2012
                                                   
Revenues:                                                        
Manufacturing (including revenues from affiliates
of $63,078 and $0 for the three months ended March  $172,975    $164,313
31, 2013 and 2012, respectively)
Railcar leasing                                     6,543        1,380
Railcar services (including revenues from
affiliates of $4,608 and $5,171 for the three       15,592       15,906
months ended March 31, 2013 and 2012, respectively)
Total revenues                                     195,110      181,599
                                                                
Cost of revenues:                                                
Manufacturing                                      (137,123)    (137,561)
Railcar leasing                                     (2,904)      (741)
Railcar services                                    (12,589)     (12,928)
Total cost of revenues                             (152,616)    (151,230)
Gross profit                                       42,494       30,369
                                                                
Selling, general and administrative (including
costs to related parties of $380 and $145 for the   (11,265)     (6,564)
three months ended March 31, 2013 and 2012,
respectively)
Earnings from operations                           31,229       23,805
                                                                
Interest income (including income from related
parties of $681 and $745 for the three months ended 691          778
March 31, 2013 and 2012, respectively)
Interest expense                                    (3,000)      (5,126)
Loss on debt extinguishment                         (392)        --
Other income (including income from a related party
of $4 and $3 for the three months ended March 31,   1,996        3
2013 and 2012, respectively)
Earnings (loss) from joint ventures                 (973)        414
Earnings before income taxes                       29,551       19,874
Income tax expense                                  (11,614)     (7,870)
Net earnings                                       $17,937     $12,004
                                                                
Net earnings per common share - basic and diluted   $0.84       $0.56
Weighted average common shares outstanding - basic  21,352       21,352
and diluted
                                                                
Cash dividends paid per common share                $0.25       $--


AMERICAN RAILCAR INDUSTRIES, INC. AND SUBSIDIARIES
SEGMENT DATA
(In thousands, unaudited)
                                                                     
              Revenues                            Earnings (Loss) from Operations
              External  Intersegment Total      External Intersegment Total
For the Three
Months Ended                                                          
March 31, 2013
Manufacturing $172,975 $55,408     $228,383 $33,979 $9,782      $43,761
Railcar        6,543     --          6,543     2,163    4            2,167
Leasing
Railcar        15,592    49           15,641    2,305    43           2,348
Services
Corporate      --       --          --       (7,218)  --          (7,218)
Eliminations   --       (55,457)     (55,457)  --      (9,829)      (9,829)
Total          $195,110 $--        $195,110 $31,229 $--        $31,229
Consolidated
For the Three
Months Ended                                                          
March 31, 2012
Manufacturing $164,313 $47,549     $211,862 $25,152 $8,922      $34,074
Railcar        1,380     --          1,380     596      6            602
Leasing
Railcar        15,906    29           15,935    2,343    (6)          2,337
Services
Corporate      --       --          --       (4,286)  --          (4,286)
Eliminations   --       (47,578)     (47,578)  --      (8,922)      (8,922)
Total          $181,599 $--        $181,599 $23,805 $--        $23,805
Consolidated


AMERICAN RAILCAR INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
                                                                
                                                   For the Three Months Ended
                                                   March 31,
                                                   2013          2012
                                                   
Operating activities:                                            
Net earnings                                        $17,937     $12,004
Adjustments to reconcile net earnings to net cash                
provided by operating activities:
Depreciation                                        6,535        5,402
Amortization of deferred costs                      183          175
Gain on disposal of property, plant and equipment   --           (34)
Share-based compensation                            6,008        696
(Earnings) loss from joint ventures                 973          (414)
Provision for deferred income taxes                 10,287       7,705
Adjustment to provision for losses on accounts      (12)         (17)
receivable
Items related to investing activities:                           
Realized again on sale of short-term investments -  (2,008)      --
availablefor sale securities
Items related to financing activities:                           
Loss on debt extinguishment                         392          --
Changes in operating assets and liabilities:                     
Accounts receivable, net                            3,754        (11,184)
Accounts receivable, due from related parties       (10,128)     1,651
Income taxes receivable                             (1,645)      --
Inventories, net                                    23,793       (9,153)
Prepaid expenses and other current assets           (1,232)      (633)
Accounts payable                                    (20,441)     4,571
Accounts payable, due to related parties            (2,061)      (329)
Accrued expenses and taxes                          (9,939)      (2,225)
Other                                               (3,820)      (566)
Net cash provided by operating activities           18,576       7,649
Investing activities:                                            
Purchases of property, plant and equipment          (6,141)      (1,337)
Capital expenditures - leased railcars              (43,619)     (40,072)
Proceeds from the sale of property, plant and       --           38
equipment
Proceeds from the sale of short-term investments -  12,699       --
available for sale securities
Proceeds from repayments of loans by joint ventures 500          --
Investments in and loans to joint ventures          (136)        (583)
Net cash used in investing activities               (36,697)     (41,954)
Financing activities:                                            
Repayment of long-term debt                         (175,328)    --
Proceeds from long-term debt                        50,000       --
Payment of common stock dividends                   (5,338)      --
Debt issuance costs                                 (212)        --
Net cash used in financing activities               (130,878)    --
Effect of exchange rate changes on cash and cash    (42)         20
equivalents
Decrease in cash and cash equivalents               (149,041)    (34,285)
Cash and cash equivalents at beginning of period    205,045      307,172
Cash and cash equivalents at end of period          $56,004     $272,887


AMERICAN RAILCAR INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF NET EARNINGS TO EBITDA AND ADJUSTED EBITDA
(In thousands, unaudited)
                                                               
                                                  For the Three Months Ended
                                                  March 31,
                                                  2013          2012
                                                               
                                                               
Net earnings                                       $17,937     $12,004
Income tax expense                                 11,614       7,870
Interest expense                                   3,000        5,126
Loss on debt extinguishment                        392          --
Interest income                                    (691)        (778)
Depreciation                                       6,535        5,402
EBITDA                                            $38,787     $29,624
Other income related to short-term investments     (2,008)      --
Expense related to stock appreciation rights       6,008        696
compensation ^1
Adjusted EBITDA                                    $42,787     $30,320
                                                               
^1 SARs are cash settled at time of exercise                    

EBITDA represents net earnings before income tax expense, interest expense
(income), loss on debt extinguishment 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 companies in the same
industry. In addition, ARI's management uses EBITDA to evaluate operating
performance. The calculation of EBITDA eliminates the effects of financing,
income taxes and the accounting effects of capital spending. These items may
vary for different companies for reasons unrelated to the overall operating
performance of a company's business. EBITDA is not a financial measure
presented in accordance with U.S. generally accepted accounting principles
(U.S. GAAP). Accordingly, when analyzing the Company's operating performance,
investors should not consider EBITDA in isolation or as a substitute for net
earnings, cash flows provided by operating activities or other statement of
operations or cash flow data prepared in accordance with U.S. GAAP. The
calculation of EBITDA is not necessarily comparable to that of other similarly
titled measures reported by other companies.

Adjusted EBITDA represents EBITDA before share-based compensation expense
related to stock appreciation rights (SARs) and other income related to our
short-term investments. Management believes that Adjusted EBITDA is useful to
investors in evaluating the Company's operating performance, and therefore
uses Adjusted EBITDA for that purpose. The Company's SARs, which settle in
cash, are revalued each period based primarily upon changes in ARI's stock
price. Management believes that eliminating the expense associated with
share-based compensation and income associated with short-term investments
allows management and ARI's investors to understand better the operating
results independent of financial changes caused by the fluctuating price and
value of the Company's common stock and short-term investments.Adjusted
EBITDA is not a financial measure presented in accordance with U.S. GAAP.
Accordingly, when analyzing operating performance, investors should not
consider Adjusted EBITDA in isolation or as a substitute for net earnings,
cash flows provided by (used in) operating activities or other statements of
operations or cash flow data prepared in accordance with U.S. GAAP. The
Company's calculation of Adjusted EBITDA is not necessarily comparable to that
of other similarly titled measures reported by other companies.

CONTACT: Dale C. Davies
         Michael Obertop
         636.940.6000