FreightCar America, Inc. Reports Quarterly Net Income Per Diluted Share of $1.67 on Sales of $292.8 Million

Business Wire, April 27, 2006

CHICAGO -- FreightCar America, Inc. (NASDAQ:RAIL) today reported financial results for the three months ended March 31, 2006. For the first quarter of 2006, sales were $292.8 million and net income attributable to common stockholders was $21.4 million, or $1.67 per diluted share. In comparison, for the first quarter of 2005, the Company had sales of $165.8 million and net income attributable to common stockholders of $1.6 million, or $0.22 per diluted share.

E[acute accent]After giving effect to the Company's initial public offering and the related transactions, pro forma earnings per share were $1.67 on a fully diluted basis for the three months ended March 31, 2006, compared to pro forma earnings per share of $0.38 on a fully diluted basis for the same period in 2005. Pro forma earnings per share is a non-GAAP financial measure. A reconciliation of the Company's net income per common share attributable to common stockholders to pro forma earnings per share is set forth in the supplemental disclosure attached to this press release. E[acute accent]Net income for the first quarter of 2006 was $21.4 million, compared to net income of $1.9 million for the first quarter of 2005. EBITDA was $34.9 million in the first quarter of 2006, compared with EBITDA of $8.7 million in the first quarter of 2005. The improvement in EBITDA reflects increased sales volume, operating leverage attributable to higher volume, improved productivity, and the impact of pass-through of increases in material costs to our customers with respect to all of our railcar deliveries. EBITDA is a non-GAAP financial measure. A reconciliation of the Company's net income to EBITDA is set forth in the supplemental disclosure attached to this press release. E[acute accent]"We are pleased with our operating results in the first quarter. Our management team did a spectacular job of, first, providing the level of business needed to expand production, then executing on our commitments by obtaining timely deliveries of raw materials and components, and increasing production rates while maintaining excellent quality and productivity," said John E. Carroll, Jr., President and CEO. E[acute accent]"Orders for new railcars totaled 1,031 units in the first quarter of 2006, compared with orders of 5,070 units for the same period in 2005. The backlog of unfilled orders was 17,794 units at March 31, 2006, compared with 14,146 units at March 31, 2005. While our backlog declined during the first quarter of 2006, orders in the railcar industry tend to be uneven and our business prospects remain strong." E[acute accent]Carroll continued, "We continue to explore strategic initiatives to further enhance shareholder value through organic growth opportunities, driving cost reduction programs to improve our competitive position, and continuing to assess our manufacturing structure." E[acute accent]The Company will host a conference call on Thursday, April 27, 2006 at 10:00 a.m. (Eastern Daylight Time) to discuss the Company's first quarter financial results. To participate in the conference call, please dial (877) 209-0397. Interested parties are asked to dial in approximately 10 minutes prior to the start time of the call. E[acute accent]An audio replay of the conference call will be available beginning at 1:30 p.m. (Eastern Daylight Time) on Thursday, April 27, 2006 until 11:59 p.m. (Eastern Daylight Time) on May 4, 2006. To access the replay, please dial (800) 475-6701. The replay pass code is 825192. An audio replay of the call will also be available on the Company's website for at least one week following the earnings call. E[acute accent]FreightCar America, Inc. manufactures railroad freight cars, with particular expertise in coal-carrying railcars. In addition to coal cars, FreightCar America designs and builds flat cars, mill gondola cars, intermodal cars, coil steel cars and motor vehicle carriers. It is headquartered in Chicago, Illinois and has manufacturing facilities in Danville, Illinois, Roanoke, Virginia and Johnstown, Pennsylvania. E[acute accent]This press release may contain statements relating to our expected financial performance and/or future business prospects, events and plans that are "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. These potential risks and uncertainties include, among other things: the cyclical nature of our business; adverse economic and market conditions; fluctuating costs of raw materials, including steel and aluminum, and delays in the delivery of raw materials; our ability to maintain relationships with our suppliers of railcar components; our reliance upon a small number of customers that represent a large percentage of our sales; the variable purchase patterns of our customers and the timing of completion, delivery and acceptance of customer orders; the highly competitive nature of our industry; the risk of lack of acceptance of our new railcar offerings by our customers; and the additional risk factors described in our filings with the Securities and Exchange Commission. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise. More information about FreightCar America is available on its website at www.freightcaramerica.com.