TheChek News Flow

Reports Q4 (Dec) earnings of $1.14 per share, $0.14 better than the Capital IQ Consensus Estimate of $1.00; revenues fell 5.1% year/year to $197.2 mln vs the $196.86 mln consensus. 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.

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.
  

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.
  

Backlog

• ARI's backlog as of December 31, 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.