American Railcar Industries, Inc. Reports Record Earnings for 2013 and Board Approves 60% Increase in Quarterly Dividend

American Railcar Industries, Inc. Reports Record Earnings for 2013 and Board
Approves 60% Increase in Quarterly Dividend

2013 Highlights

  *Adjusted EBITDA of $181.1 million vs. prior year of $149.5 million - up
    21%
  *Gross Margin of 23.8% vs. prior year of 20.8%
  *Revenues of $750.6 million vs. prior year of $711.7 million
  *6,900 railcars shipped in 2013
  *1,860 railcars added to lease fleet in 2013 - 27% of railcars shipped
  *Board increases quarterly dividend to $0.40 per share

ST. CHARLES, Mo., Feb. 19, 2014 (GLOBE NEWSWIRE) -- American Railcar
Industries, Inc. (ARI or the Company) (Nasdaq:ARII) today reported its fourth
quarter and full year 2013 financial results.

"We are pleased with another record performance during 2013. Operating
earnings improved 24% compared to 2012 as we continue to benefit from strong
tank railcar sales that have strong margins, and have generated operational
leverage and efficiencies throughout 2013. We believe the hopper railcar
market is beginning to recover, as demonstrated by orders we received during
the fourth quarter. As of December 31, 2013, we had a backlog of approximately
8,560 railcars, of which approximately 2,330 were orders for railcars that
will be subject to lease. During 2013, we increased our lease fleet by 1,860
railcars, to a total of 4,450 railcars. Our railcar leasing segment has become
a significant contributor to our results and we continue to invest in its
growth. We obtained additional financing in January 2014 to continue to grow
this business," said Jeff Hollister, President and Interim CEO of ARI.

Fourth Quarter Sales Summary

Total consolidated revenues for the fourth quarter of 2013 were $197.2
million, down 5% when compared to $207.7 million for the same period in 2012.
The decrease in consolidated revenues was due to a decrease in direct sale
railcar shipments in the fourth quarter of 2013 compared to the fourth quarter
of 2012, as a result of building more railcars for our lease fleet. This was
partially offset by increased revenues for the railcar services and railcar
leasing segments.

Total manufacturing segment revenues for the fourth quarter of 2013 were
$252.5 million, an increase of 7% over the $236.5 million for the same period
in 2012. The primary reason for the increase was a higher mix of tank railcars
sold, which generally sell at higher prices due to more material and labor
content, and at higher margins than covered hopper railcars. Manufacturing
segment revenues for the fourth quarter of 2013 included estimated revenues of
$82.6 million related to railcars built for the Company's lease fleet,
compared to estimated revenues of $49.2 million related to railcars built for
the Company's lease fleet in the fourth quarter of 2012. 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 railcar sales, but rather as lease revenues in
accordance with the terms of the contract over the life of the lease. During
the fourth quarter of 2013, ARI shipped approximately 2,050 railcars,
including approximately 670 railcars built for the Company's lease fleet,
compared to approximately 2,010 railcars for the same period of 2012,
including approximately 410 railcars built for the lease fleet. Railcars built
for the lease fleet represented approximately 33% of ARI's railcar shipments
during the fourth quarter of 2013 compared to approximately 20% for the same
period in 2012.

Total leasing segment revenues for the fourth quarter of 2013 were $9.5
million, an increase of 86% over the $5.1 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 and an increase in the average lease rate. ARI had
approximately 4,450 railcars in the Company's lease fleet at the end of 2013,
compared to approximately 2,590 railcars at the end of 2012.

Total railcar services segment revenues for the fourth quarter of 2013 were
$17.8 million, an increase of 16% over the $15.3 million for the same period
in 2012. The increase is largely a result of higher demand for paint and
lining work at our repair facilities and certain repair projects performed at
the Company's hopper railcar manufacturing facility.

Fourth Quarter Earnings Summary

Consolidated earnings from operations for the fourth quarter of 2013 were
$44.2 million, an increase of 3% over the $41.3 million for the same period in
2012. The increase was primarily due to increased earnings across all three of
the Company's segments, with the largest increase in the manufacturing
segment. Operating margin was 22.4% for the fourth quarter of 2013, up from
19.9% for the fourth quarter of 2012.

Manufacturing earnings from operations for the fourth quarter of 2013 were
$61.7 million, compared to $47.0 million for the same period in 2012. This
increase was due primarily to a higher mix of tank railcar shipments, as
discussed above, and strong general market conditions. Manufacturing earnings
from operations for the fourth quarter of 2013 included $25.1 million of
estimated profit on railcars built for the Company's lease fleet, compared to
$7.1 million for the same period in 2012. Profit on railcars built for the
Company's lease fleet 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.

The Company recorded a loss from the sale of its interest in its India joint
venture, Amtek Railcar Industries Private Limited (Amtek Railcar), of $5.9
million in the fourth quarter of 2013. Amtek Railcar experienced delays in the
initial start-up of the business, as well as delays in completing the rail
connection from the joint venture's plant to the mainline. These factors
contributed to Amtek Railcar delivering financial results weaker than
originally anticipated. After considering various strategic alternatives, the
Company decided to sell its interest in the joint venture, effective December
27, 2013. The Company's share of the operating loss from this joint venture
was $0.8 million for the fourth quarter, compared to $0.3 million for the same
period in 2012.

EBITDA, adjusted to exclude share-based compensation, other income on
short-term investments, and the loss from the sale of the Company's interest
in Amtek Railcar (Adjusted EBITDA), was $52.0 million for the fourth quarter
of 2013, compared to $48.0 million for the comparable quarter of 2012. The
increase was primarily driven by increased earnings from operations, as
discussed above. 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.

Interest expense was $1.5 million for the fourth quarter of 2013 compared to
$3.1 million in the same period in 2012. The decrease was the result of a more
favorable rate obtained on the Company's lease fleet financing and a lower
average debt balance as a result of the Company's early redemption of its 7.5%
senior unsecured notes (Notes).

Net earnings for the fourth quarter of 2013 were $24.4 million, or $1.14 per
share, equal to the comparable quarter of 2012. Net earnings were impacted by
the $5.9 million ($3.8 million after-tax), or $0.18 per share, loss from the
sale of the investment in Amtek Railcar. Excluding the loss on the sale of
Amtek Railcar, net earnings for the fourth quarter of 2013 would have been
$28.2 million, or $1.32 per share, an increase of 16% over the fourth quarter
of 2012, driven by increased earnings from operations, as discussed above, and
lower interest expense.

Year-to-Date Results

Consolidated revenues for 2013 were $750.6 million compared to $711.7 million
in 2012.

Total manufacturing segment revenues were $864.0 million for 2013 compared to
$853.0 million in 2012. This increase was primarily due to a higher mix of
tank railcars sold, which generally sell at higher prices, due to more
material and labor content, improved general market conditions, and higher
revenues from certain material cost changes that we generally pass through to
customers. Manufacturing segment revenues for 2013 included estimated revenues
of $217.9 million relating to railcars built for the lease fleet, compared to
estimated revenues of $219.5 million relating to railcars built for the lease
fleet in 2012. Such revenues are eliminated in consolidation, as discussed
above. The Company shipped approximately 6,900 railcars, including
approximately 1,860 railcars to leasing customers, during 2013, which was 12%
lower than the approximately 7,880 railcars shipped during 2012, of which
2,100 were to leasing customers. The lower 2013 shipments were the result of
weaker demand for hopper railcars during the first half of the year.

Consolidated earnings from operations for 2013 were $150.9 million, up 23%
from $121.4 million in 2012. Consolidated earnings from operations for 2013
and 2012 excluded $54.6 million and $35.4 million, respectively, of profit on
railcars built for the lease fleet, which is eliminated in consolidation, as
discussed above. Operating margins were 20.1% in 2013 compared to 17.1% in
2012 due to a higher mix of tank railcars sold, as discussed above.

Adjusted EBITDA was $181.1 million in 2013, up by 21% from $149.5 million in
2012. The increase was primarily driven by increased earnings from operations,
as discussed above.

The Company recorded a loss on the sale of its interest in Amtek Railcar of
$5.9 million in 2013.In addition, the Company's share of the operating loss
from this joint venture was $2.8 million for 2013, compared to $1.0 million
for 2012.

Net earnings in 2013 were $86.9 million, or $4.07 per share, compared to $63.8
million, or $2.99 per share in 2012.This increase was due to higher earnings
from operations as well as a 59% decrease in interest expense in 2013,
compared to 2012, as a result of the low interest rate on our lease fleet
financing and a lower debt balance due to the voluntary redemption of our
Notes.

Cash Flow and Liquidity

The Company's strong earnings have contributed to cash flow from operations of
$164.8 million in 2013, which helped to fund the growth of the Company's lease
fleet.In March 2013, the Company redeemed the remaining $175 million of its
Notes, which was partially funded by proceeds from the issuance of debt in
connection with our lease fleet financing.

The Company paid dividends totaling $21.4 million during 2013.At the board
meeting in February, the Company's board of directors declared a cash dividend
of $0.40 per share of common stock of the Company to shareholders of record as
ofMarch21, 2014 that will be paid on March27, 2014.

Backlog

ARI's backlog as of December31, 2013 was approximately 8,560 railcars, with
an estimated market value of $1,040.1 million. This backlog includes
approximately 2,330 railcars for lease with an estimated market value of
$326.7 million.

Conference Call and Webcast

ARI will host a webcast and conference call on Thursday, February20, 2014 at
10:00 am (Eastern Time) to discuss the Company's fourth 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,
anticipated 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; prospects in light of the
cyclical nature of ARI's business; the health of and prospects for the overall
railcar industry; the highly competitive nature of the manufacturing, railcar
leasing and railcar services industries; ARI's reliance upon a small number of
customers that represent a large percentage of revenues and backlog; 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 ongoing benefits and risks related to
ARI's relationship with Mr. Carl Icahn, the chairman of ARI's board of
directors and, through Icahn Enterprises L.P., ARI's principal beneficial
stockholder, and certain of his affiliates; the anticipated production
schedules for our products and the anticipated capital needs, and production
schedules of our joint ventures; the risks associated with the Company's
current joint ventures; the risks, impact and anticipated benefits associated
with potential joint ventures, acquisitions or new business endeavors; the
risk of the lack of acceptance of new railcar offerings by ARI's customers,
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; the risks associated with the Company's
on-going compliance with environmental, health, safety, and regulatory laws
and regulations, which may be subject to change; 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 implementation, integration with other systems
or ongoing management of the Company's new enterprise resource planning
system; risks related to our indebtedness and compliance with covenants
contained in the Company's financing arrangement; 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)               
                                                                
                                                    December31, December31,
                                                    2013         2012
                                                    (unaudited)  
Assets                                                           
Current assets:                                                  
Cash and cash equivalents                            $ 97,252     $ 205,045
Restricted cash                                      3,908        —
Short-term investments—available for sale securities —            12,557
Accounts receivable, net                             21,939       36,100
Accounts receivable, due from related parties        16,402       3,539
Income taxes receivable                              2,187        —
Inventories, net                                     90,185       110,075
Deferred tax assets                                  9,060        4,114
Prepaid expenses and other current assets            4,313        3,917
Total current assets                                 245,246      375,347
Property, plant and equipment, net                   159,375      155,893
Railcars on operating lease, net                     372,551      220,282
Deferred debt issuance costs                         2,026        2,374
Goodwill                                             7,169        7,169
Investment in and loans to joint ventures            31,430       44,536
                                                                
Other assets                                         7,812        4,157
Total assets                                         $ 825,609    $ 809,758
Liabilities and Stockholders' Equity                             
Current liabilities:                                             
Accounts payable                                     52,772       64,971
Accounts payable, due to related parties             1,410        2,831
Accrued expenses and taxes                           19,904       8,432
Accrued compensation                                 16,071       17,940
Accrued interest expense                             312          4,465
Short-term debt, including current portion of        6,655        2,755
long-term debt
Total current liabilities                            97,124       101,394
Long-term debt, net of current portion               188,103      272,245
Deferred tax liability                               99,212       53,466
Pension and post-retirement liabilities              4,718        9,518
Other liabilities                                    2,550        3,670
Total liabilities                                    391,707      440,293
Stockholders' equity:                                            
Common stock, $0.01 par value, 50,000,000 shares
authorized, 21,352,297 shares issued and outstanding 213          213
at both December31, 2013 and 2012
Additional paid-in capital                           239,609      239,609
Retained earnings                                    195,574      130,030
Accumulated other comprehensive loss                 (1,494)      (387)
Total stockholders' equity                           433,902      369,465
Total liabilities and stockholders' equity           $ 825,609    $ 809,758


AMERICAN RAILCAR INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts, unaudited)

                                      Three Months        Twelve Months Ended
                                       Ended
                                      December 31, 2013   December 31, 2013
                                      2013      2012      2013      2012
Revenues:                                                         
Manufacturing (including revenues from
affiliates of $101,795 and $250,455
for the three and twelve months ended
December 31, 2013, respectively;       $ 169,940 $ 187,274 $ 646,100 $ 633,547
$42,820 and $103,679 in 2012,
respectively; and $9 and $1,230 in
2011, respectively)
Railcar leasing                        9,500     5,129     31,871    13,444
Railcar services (including revenues
from affiliates of $3,706 and $17,167
for the three and twelve months ended
December 31, 2013, respectively;       17,739    15,277    72,621    64,732
$4,584 and $21,442 in 2012,
respectively; and $5,681 and $24,730
in 2011, respectively)
Total revenues                         197,179   207,680   750,592   711,723
Cost of revenues:                                                 
Manufacturing                          (131,372) (145,576) (503,178) (506,083)
Railcar leasing                        (3,665)   (1,710)   (13,394)  (5,906)
Railcar services                       (12,345)  (12,534)  (55,408)  (51,383)
Total cost of revenues                 (147,382) (159,820) (571,980) (563,372)
Gross profit                           49,797    47,860    178,612   148,351
Selling, general and administrative
(including costs from related parties
of $258 and $1,122 for the three and
twelve months ended December 31, 2013; (5,614)   (6,543)   (27,705)  (26,931)
$145 and $586 in 2012, respectively;
and $146 and $582 in 2011,
respectively)
Earnings from operations               44,183    41,317    150,907   121,420
Interest income (including income from
related parties of $652 and $2,678 for
the three and twelve months ended      674       706       2,716     3,003
December 31, 2013, respectively; $701
and $2,902 in 2012, respectively; and
$728 and $2,839 in 2011, respectively)
Interest expense                       (1,484)   (3,135)   (7,337)   (17,765)
Loss on debt extinguishment            —         —         (392)     (2,267)
Other income (loss) (including income
from a related party of $5 and $19 for
the three and nine months ended        13        1,868     2,037     1,905
December 31, 2013, respectively; $5
and $15 in 2012, respectively; and $5
and $16 in 2011, respectively)
Loss from joint ventures               (6,313)   (482)     (8,595)   (451)
Earnings before income taxes           37,073    40,274    139,336   105,845
Income tax expense                     (12,703)  (15,826)  (52,440)  (42,022)
Net earnings                           $ 24,370  $ 24,448  $ 86,896  $ 63,823
Net earnings per common share—basic    $ 1.14    $ 1.14    $ 4.07    $ 2.99
and diluted
Weighted average common shares         21,352    21,352    21,352    21,352
outstanding—basic and diluted


AMERICAN RAILCAR INDUSTRIES, INC. AND SUBSIDIARIES
SEGMENT DATA
(In thousands, unaudited)

                      Revenues                        Earnings (Loss) from
                                                       Operations
                      External Intersegment Total     External Intersegment Total
Three Months Ended                                                      
December 31, 2013
Manufacturing          $        $ 82,607     $ 252,547 $ 36,620 $ 25,080     $ 61,700
                       169,940
Railcar Leasing        9,500    —            9,500     4,873    23           4,896
Railcar Services       17,739   107          17,846    4,692    (36)         4,656
Corporate/Eliminations —        (82,714)     (82,714)  (2,002)  (25,067)     (27,069)
Total Consolidated     $        $ —          $ 197,179 $ 44,183 $ —          $ 44,183
                       197,179
Three Months Ended                                                      
December 31, 2012
Manufacturing          $        $ 49,232     $ 236,506 $ 39,931 $ 7,082      $ 47,013
                       187,274
Railcar Leasing        5,129    —            5,129     3,377    10           3,387
Railcar Services       15,277   54           15,331    2,024    (3)          2,021
Corporate/Eliminations —        (49,286)     (49,286)  (4,015)  (7,089)      (11,104)
Total Consolidated     $        $ —          $ 207,680 $ 41,317 $ —          $ 41,317
                       207,680
Twelve Months Ended                                                     
December 31, 2013
Manufacturing          $        $ 217,922    $ 864,022 $        $ 54,621     $
                       646,100                         135,454               190,075
Railcar Leasing        31,871   —            31,871    14,836   40           14,876
Railcar Services       72,621   233          72,854    14,372   (46.9)       14,325
Corporate/Eliminations —        (218,155)    (218,155) (13,755) (54,614)     (68,369)
Total Consolidated     $        —            $ 750,592 $        —            $
                       750,592                         150,907               150,907
Twelve Months Ended                                                     
December 31, 2012
Manufacturing          $        $ 219,499    $ 853,046 $        $ 35,362     $
                       633,547                         120,623               155,985
Railcar Leasing        13,444   —            13,444    7,371    29           7,400
Railcar Services       64,732   495          65,227    10,718   (99)         10,619
Corporate/Eliminations —        (219,994)    (219,994) (17,292) (35,292)     (52,584)
Total Consolidated     $        —            $ 711,723 $        —            $
                       711,723                         121,420               121,420


AMERICAN RAILCAR INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)

                                             Twelve Months Ended December 31,
                                             2013
                                             2013             2012
Operating activities:                                         
Net earnings                                  $ 86,896         $ 63,823
Adjustments to reconcile net earnings to net                  
cash provided by operating activities:
Depreciation                                  27,712           23,850
Amortization of deferred costs                633              605
Loss on disposal of property, plant and       24               37
equipment
Change in interest receivable, due from       —                292
affiliates
Loss from joint ventures                      8,595            451
Provision for deferred income taxes           39,707           37,113
Adjustment to provision for losses on         48               90
accounts receivable
Item related to investing activities:                         
Realized and unrealized gain on short-term    (141)            (3,730)
investments—available for sale securities
Item related to financing activities:                         
Loss on debt extinguishment                   392              2,267
Changes in operating assets and liabilities:                  
Accounts receivable, net                      14,077           (2,568)
Accounts receivable, due from affiliates      (12,904)         2,588
Income taxes receivable                       (2,316)          4,057
Inventories, net                              19,819           (14,224)
Prepaid expenses and other current assets     (398)            621
Accounts payable                              (12,184)         2,653
Accounts payable, due to affiliates           (1,421)          2,031
Accrued expenses and taxes                    5,468            3,633
Other                                         (9,241)          (2,211)
Net cash provided by operating activities     164,766          121,378
Investing activities:                                         
Purchases of property, plant and equipment    (22,025)         (19,962)
Capital expenditures—leased railcars          (162,068)        (185,918)
Proceeds from sale of property, plant and     54               259
equipment
Purchase of short-term investments—available  —                (40,334)
for sale securities
Proceeds from sale of short-term              12,699           31,506
investments—available for sale securities
Proceeds from repayments of loans by joint
ventures and sale of investment in joint      5,100            1,908
venture
Investments in and loans to joint ventures    (136)            (1,856)
Net cash used in investing activities         (166,376)        (214,397)
Financing activities:                                         
Repayment of long-term debt                   (180,083)        (100,000)
Proceeds from long-term debt                  99,841           100,000
Restricted cash                               (3,908)          —
Premium paid on debt redemption               —                (1,875)
Payment of common stock dividends             (21,352)         (5,338)
Debt issuance costs                           (543)            (1,917)
Proceeds from stock option exercises          —                —
Net cash (used in) provided by financing      (106,045)        (9,130)
activities
Effect of exchange rate changes on cash and   (138)            22
cash equivalents
Decrease in cash and cash equivalents         (107,793)        (102,127)
Cash and cash equivalents at beginning of     205,045          307,172
year
Cash and cash equivalents at end of year      $ 97,252         $ 205,045


AMERICAN RAILCAR INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF NET EARNINGS TO EBITDA AND ADJUSTED EBITDA
(In thousands, unaudited)

                                       Three Months Ended Twelve Months Ended
                                       December 31,       December 31,
                                       2013      2012     2013      2012
Net earnings                            $ 24,370  $ 24,448 $ 86,896  $ 63,823
Income tax expense                      12,703    15,826   52,440    42,022
Interest expense                        1,484     3,135    7,337     17,765
Loss on debt extinguishment             —         —        392       2,267
Interest income                         (674)     (706)    (2,716)   (3,003)
Depreciation                            7,279     6,344    27,712    23,850
EBITDA                                  $ 45,162  $ 49,047 $ 172,061 $ 146,724
Loss on sale of investment in India     5,917     —        5,917     —
joint venture
Other income related to short-term      —         (1,863)  (2,008)   (1,863)
investments
Expense related to stock appreciation   889       858      5,129     4,668
rights compensation
Adjusted EBITDA                         $ 51,968  $ 48,042 $ 181,099 $ 149,529


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), other income related to our
short-term investments and the loss on sale of the Company's investment in the
India joint venture. 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, income associated with short-term investments, and
other one-time, nonrecurring, unusual or infrequent charges, expenses or gains
that may not be indicative of the Company's core business results 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, short-term investments and certain non-recurring
events. 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 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
 
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