Freightcar America (RAIL) has reported 99.37 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $0.07 million, or $0.01 a share in the quarter, compared with $11.65 million, or $0.94 a share for the same period last year.

Revenue during the quarter plunged 33.34 percent to $135.52 million from $203.30 million in the previous year period. Gross margin for the quarter contracted 844 basis points over the previous year period to 4.96 percent. Operating margin for the quarter stood at negative 2.28 percent as compared to a positive 7.90 percent for the previous year period.

Operating loss for the quarter was $3.09 million, compared with an operating income of $16.06 million in the previous year period.

However, the adjusted operating loss for the quarter stood at $2.36 million compared to operating profit of $16.06 million in prior year period.

"In 2016, the rail industry experienced a second year of reduced car loadings and a large oversupply of railcars, which contributed to a 45% reduction in deliveries in the fourth quarter," said Joe McNeely, president and chief executive officer. "Additionally, in the fourth quarter, we continued to experience higher than expected manufacturing costs associated with certain first-time car builds. We continue to address our production processes and expect improvements in these builds going forward."

Cash flow from investing activities was $14.08 million for the year, down 60.59 percent or $21.65 million, when compared with the last year. It has incurred net capital expenditure of $13.84 million on net basis during the year, up 53.06 percent or $4.80 million from year ago.

The company has spent $4.62 million cash to carry out financing activities during the year as against cash outgo of $0.51 million in the last year period.

Cash and cash equivalents stood at $92.75 million as on Dec. 31, 2016, up 11.66 percent or $9.68 million from $83.07 million on Dec. 31, 2015.

Working capital declines
Freightcar America has witnessed a decline in the working capital over the last year. It stood at $187.04 million as at Dec. 31, 2016, down 10.13 percent or $21.09 million from $208.12 million on Dec. 31, 2015. Current ratio was at 4.45 as on Dec. 31, 2016, up from 3.87 on Dec. 31, 2015.

Cash conversion cycle (CCC) has increased to 31 days for the quarter from 30 days for the last year period. Days sales outstanding were almost stable at 9 days for the quarter, when compared with the last year period.

Days inventory outstanding has increased to 35 days for the quarter compared with 30 days for the previous year period. At the same time, days payable outstanding went up to 12 days for the quarter from 9 for the same period last year.