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    Mark La Reichman • Noble Capital Markets

    Mark La Reichman's questions to FreightCar America Inc (RAIL) leadership

    Mark La Reichman's questions to FreightCar America Inc (RAIL) leadership • Q1 2025

    Question

    Mark La Reichman of NOBLE Capital Markets asked about the specific product segments driving sales and market share. He also inquired about the conditions for activating a fifth production line, the potential costs to make it tank-car-ready, and whether the recent high gross margin represents a new normalized range for the company.

    Answer

    CEO Nicholas Randall explained that orders were a healthy mix across all product types, not concentrated in one area. He stated a fifth line could be commissioned for under $1 million in less than 90 days if sustained demand exceeded 5,200 cars annually. CFO Michael Riordan declined to specify the CapEx for making a line tank-car-ready but confirmed the company expects gross margin expansion for the full year 2025 over 2024, driven by a better product mix and operational efficiencies.

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    Mark La Reichman's questions to FreightCar America Inc (RAIL) leadership • Q4 2024

    Question

    Mark La Reichman of NOBLE Capital Markets inquired about the fourth-quarter product mix, its effect on the 2025 quarterly cadence, FreightCar's competitive positioning regarding potential tariffs, and the implications of the recent S-3 registration statement.

    Answer

    Executive Nicholas Randall and Executive Michael Riordan explained that while Q4 2024 benefited from a high-ASP product mix, 2025 will see a different mix, leading to modest revenue growth but strong EBITDA growth. They detailed a slower Q1 2025 due to producing spare parts, with a ramp-up in the second half. Regarding tariffs, they stated that guidance accounts for this uncertainty, emphasizing industry resilience and FreightCar's agility as a competitive advantage. Riordan clarified the S-3 filing is a renewal and that PIMCO registering as a selling shareholder will not cause new dilution, as the warrant shares were already included in the EPS calculation.

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    Mark La Reichman's questions to FreightCar America Inc (RAIL) leadership • Q3 2024

    Question

    Mark La Reichman of Noble Capital Markets inquired about the drivers of the strong Q3 gross margin, its sustainability ahead of new tank car production, the potential impacts of a new political administration on demand and tariffs, and the company's balance sheet recapitalization plans. He later followed up on the growth drivers for the parts business, particularly concerning coal cars, and the outlook for Q4 gross margins.

    Answer

    Executive Michael Riordan attributed the 14.3% gross margin to operating four lines at full capacity with minimal changeovers, focusing on gondolas, open-top hoppers, and flat cars. Executive Matthew Tonn stated that demand is expected to remain tied to the 40,000-car annual replacement cycle. Riordan confirmed no current or expected impact from tariffs and noted that recapitalizing the balance sheet remains a key objective. Regarding parts sales, Riordan explained that a delay in coal plant retirements would positively impact the business and that the company is expanding its aftermarket parts offerings. He also indicated that Q4 gross margins are expected to decrease sequentially from Q3 due to the timing of changeovers and product mix shifts.

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    Mark La Reichman's questions to AZZ Inc (AZZ) leadership

    Mark La Reichman's questions to AZZ Inc (AZZ) leadership • Q4 2025

    Question

    Mark La Reichman of NOBLE Capital Markets sought clarity on debt reduction goals following the Avail JV sale, specifically asking if a $300 million paydown was realistic, and inquired about the FY2026 CapEx split between segments.

    Answer

    Executive Tom Ferguson confirmed that a $300 million debt repayment in fiscal 2026 is "very realistic." Executive Jason Crawford added that this level of debt reduction would still leave room for other capital allocation priorities like share buybacks. Regarding the $60-$80 million CapEx budget, Crawford explained it's roughly a 50-50 split between Metal Coatings and Precoat Metals, with the higher end of the range accounting for growth projects and carryover spending for the new Washington facility.

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    Mark La Reichman's questions to Alliance Resource Partners LP (ARLP) leadership

    Mark La Reichman's questions to Alliance Resource Partners LP (ARLP) leadership • Q4 2024

    Question

    Mark La Reichman from Noble Capital Markets, Inc. asked for an update on the operational status of the Mettiki and Tunnel Ridge mines, questioning if geological issues would extend into Q1 2025. He also sought clarification on the drivers for the 2025 segment adjusted EBITDA expense guidance and inquired about the company's oil and gas acquisition strategy, specifically whether it would shift towards more gas-weighted assets.

    Answer

    Joseph Craft, Chairman, President, and CEO, explained that longwall moves are scheduled for February. He anticipates improvement at Mettiki but noted that significant improvement at Tunnel Ridge is not expected until a move to a new district in May 2025, causing Q1 costs to be higher. Mr. Craft and Cary Marshall, SVP & CFO, clarified that achieving the lower end of the cost guidance depends on hitting the higher end of sales volume guidance, with costs expected to decline sequentially throughout 2025. Regarding M&A, Mr. Craft affirmed the strategy remains focused on oil-weighted assets in the Permian Basin for their predictable cash flow, though they will not shy away from opportunities with gas exposure.

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    Mark La Reichman's questions to Alliance Resource Partners LP (ARLP) leadership • Q4 2024

    Question

    Mark La Reichman from Noble Capital Markets inquired about the operational status in Appalachia, asking if the geologic issues at Mettiki and Tunnel Ridge were resolved, and questioned the factors that would drive costs to the low versus high end of the 2025 guidance range.

    Answer

    Joseph Craft, Chairman, President and CEO, explained that longwall moves are scheduled for February, with significant improvement at Tunnel Ridge expected from May onward after moving to a new district. He noted Mettiki remains harder to predict. Both Craft and Executive Cary Marshall clarified that cost performance depends on sales volume, with higher volumes potentially lowering the average cost. They emphasized that Q1 costs will be the highest in 2025 due to the longwall moves, with sequential improvement expected thereafter.

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