FreightCar America Inc

Previous wording

We are a diversified manufacturer of railcars and railcar components. We design and manufacture a broad variety of railcar types for transportation of bulk commodities and containerized freight products primarily in North America. We also provide railcar rebody services and railcar conversions that repurpose idled rail assets back into revenue service, supply railcar parts, and service freight cars. We have been manufacturing railcars since 1901.

Current wording

We are a diversified manufacturer of railcars and railcar components. We design and manufacture a broad variety of railcar types for transportation of bulk commodities and containerized freight products primarily in North America. We also provide railcar rebody and repair services, railcar conversion services that repurpose idled rail assets back into revenue service, and supply railcar parts. We have been manufacturing railcars since 1901.

Previous wording

Total net railcar orders received for the six months ended June 30, 2024 were 3,301 units, consisting of 1,906 new railcars and 1,395 rebuilt railcars, compared to orders for 2,341 units, consisting of 2,151 new railcars and 190 rebuilt railcars for the six months ended June 30, 2023. Total backlog of unfilled orders was 3,833 units at June 30, 2024, compared to 2,914 railcars as of December 31, 2023. The estimated sales value of the backlog was $382 million and $348 million as of June 30, 2024 and December 31, 2023, respectively. The increase in the number of net railcar orders received for the six months ended June 30, 2024 compared to the prior year period is primarily a reflection of improvement in the railcar equipment market.

Current wording

Total net railcar orders received for the nine months ended September 30, 2024 were 4,040 units, consisting of 2,645 new railcars and 1,395 rebuilt railcars, compared to orders for 3,356 units, consisting of 3,166 new railcars and 190 rebuilt railcars for the nine months ended September 30, 2023. Total backlog of unfilled orders was 3,611 units at September 30, 2024, compared to 2,914 railcars as of December 31, 2023. The estimated sales value of the backlog was $372 million and $348 million as of September 30, 2024 and December 31, 2023, respectively. The increase in the number of net railcar orders received for the nine months ended September 30, 2024 compared to the prior year period is primarily a reflection of the Company’s increased production capacity year-over-year.

Previous wording

Our consolidated revenues for the three months ended June 30, 2024 were $147.4 million compared to $88.6 million for the three months ended June 30, 2023. Manufacturing segment revenues for the three months ended June 30, 2024 were $142.5 million compared to $85.7 million for the corresponding prior year period. The $56.8 million increase in Manufacturing segment revenues was primarily driven by an increase in the volume of railcar units delivered during the quarter. Railcar deliveries in the three months ended June 30, 2024 totaled 1,159 units, consisting of 1,049 new railcars and 110 rebuilt railcars, compared to 760 units in the same period of 2023, consisting of 665 new railcars and 95 rebuilt railcars. Corporate and Other revenues were $4.9 million for the three months ended June 30, 2024 compared to $2.9 million for the three months ended June 30, 2023.

Current wording

Our consolidated revenues for the three months ended September 30, 2024 were $113.3 million compared to $61.9 million for the three months ended September 30, 2023. Manufacturing segment revenues for the three months ended September 30, 2024 were $109.1 million compared to $58.6 million for the corresponding prior year period. The $50.5 million increase in Manufacturing segment revenues was primarily driven by an increase in the volume of railcar units delivered during the quarter. Railcar deliveries in the three months ended September 30, 2024 totaled 961 units, consisting entirely of new railcars, compared to 503 units in the same period of 2023, consisting of 382 new railcars and 121 rebuilt railcars. Corporate and Other revenues were $4.2 million for the three months ended September 30, 2024 compared to $3.3 million for the three months ended September 30, 2023.

Previous wording

Our consolidated gross profit was $18.4 million for the three months ended June 30, 2024 compared to $13.0 million for the three months ended June 30, 2023. Manufacturing segment gross profit was $16.0 million for the three months ended June 30, 2024 compared to $11.7 million for the three months ended June 30, 2023. The $5.4 million increase in consolidated gross profit and $4.3 million increase in Manufacturing segment gross profit primarily reflects a favorable volume variance.

Current wording

Our consolidated gross profit was $16.2 million for the three months ended September 30, 2024 compared to $9.2 million for the three months ended September 30, 2023. Manufacturing segment gross profit was $14.3 million for the three months ended September 30, 2024 compared to $7.9 million for the three months ended September 30, 2023. The $7.0 million increase in consolidated gross profit and $6.4 million increase in Manufacturing segment gross profit reflects a favorable volume variance. Corporate and Other gross profit was $1.9 million for the three months ended September 30, 2024 compared to $1.3 million for the three months ended September 30, 2023.

Previous wording

Consolidated selling, general and administrative expenses for the three months ended June 30, 2024 were $8.5 million compared to $5.9 million for the three months ended June 30, 2023. The $2.7 million increase in consolidated selling, general and administrative expenses for the three months ended June 30, 2024 was primarily due to increases in stock-based compensation expenses of $0.9 million and legal expenses of $1.0 million. Manufacturing segment selling, general and administrative expenses were $0.5 million for each of the three months ended June 30, 2024 and 2023. Manufacturing segment selling, general and administrative expenses for the three months ended June 30, 2024 were 0.4% of revenue, compared to 0.6% of revenue for the three months ended June 30, 2023. Corporate and Other selling, general and administrative expenses were $8.0 million for the three months ended June 30, 2024 compared to $5.3 million for the three months ended June 30, 2023. The $2.7 million increase in Corporate and Other selling, general and administrative expenses is primarily a result of the previously mentioned increases in stock-based compensation expenses and legal expenses in the current year.

Current wording

Consolidated selling, general and administrative expenses were $7.5 million for each of the three months ended September 30, 2024 and 2023. Manufacturing segment selling, general and administrative expenses were $0.5 million for the three months ended September 30, 2024, compared to $0.6 million for the three months ended September 30, 2023. Manufacturing segment selling, general and administrative expenses for the three months ended September 30, 2024 were 0.5% of revenue, compared to 1.0% of revenue for the three months ended September 30, 2023. Corporate and Other selling, general and administrative expenses were $7.0 million for the three months ended September 30, 2024 compared to $6.9 million for the three months ended September 30, 2023.

Previous wording

Our consolidated operating income for the six months ended June 30, 2024 was $17.0 million compared to a $8.8 million consolidated operating income for the six months ended June 30, 2023 driven primarily by the previously mentioned gross profit, partially offset by the previously mentioned increase in selling, general and administrative expenses. Operating income for the Manufacturing segment was $26.9 million for the six months ended June 30, 2024 compared to an operating income of $17.4 million for the six months ended June 30, 2023, reflecting the increase in railcars delivered during the six months ended June 30, 2024 compared to the three months ended June 30, 2023. Corporate and Other operating loss was $9.9 million for the six months ended June 30, 2024 compared to $8.6 million for the six months ended June 30, 2023. The $1.3 million increase in operating loss is primarily a result of the previously mentioned increases in selling, general and administrative expenses.

Current wording

Our consolidated operating income for the three months ended September 30, 2024 was $8.7 million compared to $1.4 million for the three months ended September 30, 2023 driven primarily by the previously mentioned favorable volume variance, partially offset by the previously mentioned loss on pension settlement. Operating income for the Manufacturing segment was $13.8 million for the three months ended September 30, 2024 compared to $7.4 million for the three months ended September 30, 2023, reflecting the increase in railcars delivered during the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Corporate and Other operating loss was $5.2 million for the three months ended September 30, 2024 compared to $6.0 million for the three months ended September 30, 2023.

Previous wording

Our income tax provision was $2.5 million for the three months ended June 30, 2024 compared to our income tax provision of $0.6 million for the three months ended June 30, 2023 primarily due to an increase in the mix of forecasted earnings and permanent items generated mainly in jurisdictions with higher tax rates.

Current wording

Our income tax provision was $3.4 million for the three months ended September 30, 2024 compared to our income tax provision of $0.2 million for the three months ended September 30, 2023. The increase in income tax expense is primarily explained by the mix of forecasted earnings in the U.S. and Mexico, as well as the impact of permanent and discrete items predominantly in Mexico.

Previous wording

As a result of the changes and results discussed above, as well as the change in fair value of the Warrant liability, net income was $8.2 million for the three months ended June 30, 2024 compared to net loss of $18.9 million for the three months ended June 30, 2023. For the three months ended June 30, 2024, basic net income per share was $0.12 and diluted net income per share was $0.11 compared to basic and diluted net loss per share of $0.73 for the three months ended June 30, 2023.

Current wording

As a result of the changes discussed above, net loss was $107.0 million for the three months ended September 30, 2024 compared to net income of $3.2 million for the three months ended September 30, 2023. For the three months ended September 30, 2024, basic and diluted net loss per share was $3.57, compared to basic and diluted net loss per share of $0.03 for the three months ended September 30, 2023.

Previous wording

Our consolidated revenues for the six months ended June 30, 2024 were $308.5 million compared to $169.6 million for the six months ended June 30, 2023. Manufacturing segment revenues for the six months ended June 30, 2024 were $298.3 million compared to $163.3 million for the corresponding prior year period. The $135 million increase in Manufacturing segment revenues was primarily driven by an increase in the volume of railcar units delivered during the current period, which includes the railcars impacted by the closure of the U.S.-Mexico border in December 2023. Railcar deliveries in the six months ended June 30, 2024 totaled 2,382 units, consisting of 2,272 new railcars and 110 rebuilt railcars, compared to 1,498 units in the same period of 2023, consisting of 1,304 new railcars and 194 rebuilt railcars. Corporate and Other revenues were $10.2 million for the six months ended June 30, 2024 compared to $6.3 million for the six months ended June 30, 2023.

Current wording

Our consolidated revenues for the nine months ended September 30, 2024 were $421.7 million compared to $231.5 million for the nine months ended September 30, 2023. Manufacturing segment revenues for the nine months ended September 30, 2024 were $407.3 million compared to $221.9 million for the corresponding prior year period. The $185.4 million increase in Manufacturing segment revenues was primarily driven by an increase in the volume of railcar units delivered during the current period, which includes delivery in the first quarter of 2024 of railcars that had been temporarily impacted by the closure of the U.S.-Mexico border in December 2023. Railcar deliveries in the nine months ended September 30, 2024 totaled 3,343 units, consisting of 3,233 new railcars and 110 rebuilt railcars, compared to 2,001 units in the same period of 2023, consisting of 1,686 new railcars and 315 rebuilt railcars. Corporate and Other revenues were $14.4 million for the nine months ended September 30, 2024 compared to $9.6 million for the nine months ended September 30, 2023.

Previous wording

Our consolidated gross profit was $29.8 million for the six months ended June 30, 2024 compared to $20.4 million for the six months ended June 30, 2023. Manufacturing segment gross profit was $24.7 million for the six months ended June 30, 2024 compared to $18.1 million for the six months ended June 30, 2023. The $9.4 million increase in consolidated gross profit and $6.6 million increase in Manufacturing segment gross profit primarily reflects a favorable volume variance.

Current wording

Our consolidated gross profit was $46.0 million for the nine months ended September 30, 2024 compared to $29.7 million for the nine months ended September 30, 2023. Manufacturing segment gross profit was $39.0 million for the nine months ended September 30, 2024 compared to $26.0 million for the nine months ended September 30, 2023. The $16.3 million increase in consolidated gross profit and $13.0 million increase in Manufacturing segment gross profit primarily reflects a favorable volume variance. Corporate and Other gross profit was $7.0 million for the nine months ended September 30, 2024 compared to $3.7 million for the nine months ended September 30, 2023.

Previous wording

Consolidated selling, general and administrative expenses for the six months ended June 30, 2024 were $16.0 million compared to $12.2 million for the six months ended June 30, 2023. The $3.8 million increase in consolidated selling, general and administrative expenses for the six months ended June 30, 2024 was primarily due to a increases in stock-based compensation expenses of $1.7 million and legal expenses of $1.0 million. Manufacturing segment selling, general and administrative expenses were $0.9 million for the six months ended June 30, 2024 compared to $1.3 million for the six months ended June 30, 2023. The $0.4 million decrease in Manufacturing selling, general and administrative expenses for the six months ended June 30, 2024 was primarily due to a $0.3 million decrease in consulting expenses. Manufacturing segment selling, general and administrative expenses for the six months ended June 30, 2024 were 0.3% of revenue, compared to 0.8% of revenue for the six months ended June 30, 2023. Corporate and Other selling, general and administrative expenses were $15.1 million for the six months ended June 30, 2024 compared to $10.9 million for the six months ended June 30, 2023. The $4.2 million increase in Corporate and Other selling, general and administrative expenses is primarily a result of the previously mentioned increases in stock-based compensation expenses and legal expenses in the current year.

Current wording

Consolidated selling, general and administrative expenses for the nine months ended September 30, 2024 were $23.5 million compared to $19.8 million for the nine months ended September 30, 2023. The $3.7 million increase in consolidated selling, general and administrative expenses for the nine months ended September 30, 2024 was primarily due to increases in stock-based compensation expenses of $1.8 million and legal expenses of $1.8 million. Manufacturing segment selling, general and administrative expenses were $1.4 million for the nine months ended September 30, 2024 compared to $1.9 million for the nine months ended September 30, 2023. The $0.5 million decrease in Manufacturing selling, general and administrative expenses for the nine months ended September 30, 2024 was primarily due to a $0.4 million decrease in consulting expenses. Manufacturing segment selling, general and administrative expenses for the nine months ended September 30, 2024 were 0.3% of revenue, compared to 0.9% of revenue for the nine months ended September 30, 2023. Corporate and Other selling, general and administrative expenses were $22.1 million for the nine months ended September 30, 2024 compared to $17.9 million for the nine months ended September 30, 2023. The $4.2 million increase in Corporate and Other selling, general and administrative expenses is primarily a result of the previously mentioned increases in stock-based compensation expenses and legal expenses in the current year.

Previous wording

During the three months ended June 30, 2024, we recorded a pre-tax litigation settlement of $3.2 million related to a dispute with a former lessee of our railcars. During the three months ended June 30, 2023, we did not record any litigation settlements.

Current wording

During the nine months ended September 30, 2024, we recorded a pre-tax litigation settlement of $3.2 million related to a dispute with a former lessee of our railcars. During the nine months ended September 30, 2023, we did not record any litigation settlements.

Previous wording

Our consolidated operating income for the three months ended June 30, 2024 was $13.1 million compared to a $7.7 million consolidated operating income for the three months ended June 30, 2023 driven primarily by the previously mentioned gross profit, partially offset by the previously mentioned increase in selling, general and administrative expenses. Operating income for the Manufacturing segment was $18.7 million for the three months ended June 30, 2024 compared to an operating income of $11.7 million for the three months ended June 30, 2023, reflecting the increase in railcars delivered during the three months ended June 30, 2024 compared to the three months ended June 30, 2023. Corporate and Other operating loss was $5.6 million for the three months ended June 30, 2024 compared to $4.0 million for the three months ended June 30, 2023. The $1.6 million increase in operating loss is primarily a result of the previously mentioned increases in selling, general and administrative expenses.

Current wording

Our consolidated operating income for the nine months ended September 30, 2024 was $25.7 million compared to a $10.2 million consolidated operating income for the nine months ended September 30, 2023 driven primarily by the previously mentioned favorable volume variance, partially offset by the previously mentioned increase in selling, general and administrative expenses. Operating income for the Manufacturing segment was $40.8 million for the nine months ended September 30, 2024 compared to an operating income of $24.8 million for the nine months ended September 30, 2023, reflecting the increase in railcars delivered during the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. Corporate and Other operating loss was $15.1 million for the nine months ended September 30, 2024 compared to $14.6 million for the nine months ended September 30, 2023. The $0.5 million increase in operating loss is primarily a result of the previously mentioned increases in selling, general and administrative expenses.

Previous wording

There was no loss on extinguishment of debt for the three months ended June 30, 2024. Loss on extinguishment of debt for the three months ended June 30, 2023 was $14.9 million due to the settlement of the Term Loan Credit Agreement through the issuance of Series C Preferred Stock and the termination of the M&T Credit Agreement and Forbearance Agreement.

Current wording

There was no loss on extinguishment of debt for the nine months ended September 30, 2024. Loss on extinguishment of debt for the nine months ended September 30, 2023 was $14.9 million due to the settlement of the Credit Agreement through the issuance of Series C Preferred Stock and the termination of the M&T Credit Agreement and Forbearance Agreement (refer to our Annual Report on Form 10-K issued on March 18, 2024 for defined terms).

Previous wording

Our income tax benefit was $0.1 million for the six months ended June 30, 2024 compared to our income tax provision of $0.7 million for the six months ended June 30, 2023 primarily due to an increase in the mix of forecasted earnings and permanent items generated mainly in jurisdictions with higher tax rates.

Current wording

Our income tax benefit was $3.3 million for the nine months ended September 30, 2024 compared to our income tax provision of $0.9 million for the nine months ended September 30, 2023. The increase in income tax expense is primarily explained by the mix of forecasted earnings in the U.S. and Mexico, as well as the impact of permanent and discrete items predominantly in Mexico.

Previous wording

As a result of the changes and results discussed above, as well as the change in fair value of the Warrant liability, net loss was $3.4 million for the six months ended June 30, 2024 compared to $23.9 million for the six months ended June 30, 2023. For the six months ended June 30, 2024, basic and diluted net loss per share was $0.41 compared to $0.93 for the six months ended June 30, 2023.

Current wording

As a result of the changes discussed above, net loss was $110.4 million for the nine months ended September 30, 2024 compared to $20.7 million for the nine months ended September 30, 2023. For the nine months ended September 30, 2024, basic and diluted net loss per share was $4.07, compared to basic and diluted net loss per share of $0.94 for the nine months ended September 30, 2023.

Previous wording

As of June 30, 2024, a revolving line of credit maturing on October 31, 2024 existed in the maximum aggregate principal amount of up to $45,000, secured by a standby letter of credit in the principal amount of $25,000 and the Company’s accounts receivable. In connection with the standby letter of credit, the Company has agreed to pay an affiliate of OCI III LFE (as defined below) a fee due and payable in cash of $375 per quarter.

Current wording

As of September 30, 2024, a revolving line of credit maturing on October 31, 2024 exists in the maximum aggregate principal amount of up to $45,000, secured by a standby letter of credit in the principal amount of $25,000 and the Company’s accounts receivable. In connection with the standby letter of credit, the Company has agreed to pay an affiliate of OC III LFE (as defined below) a fee due and payable in cash of $375 per quarter.

Previous wording

The Company had no outstanding debt and remaining availability of $39,586 under the Company’s revolving credit facility as of June 30, 2024. As of December 31, 2023, the Company had $29,415 in outstanding debt and remaining availability of $10,853 under the revolving credit facility.

Current wording

The Company had no outstanding debt and remaining availability of $41,373 under this facility as of September 30, 2024. As of December 31, 2023, the Company had $29,415 in outstanding debt and remaining availability of $10,853 under this facility.

Previous wording

The standby letter of credit bears interest at the prime rate of interest (“Prime”) plus 1.5%, or 10% as of June 30, 2024. Advances secured by the Company’s accounts receivable bear interest at Prime plus 2%, or 10.5% as of June 30, 2024.

Current wording

The standby letter of credit bears interest at the prime rate of interest (“Prime”) plus 1.5%, or 9.5% as of September 30, 2024. Advances secured by the Company’s accounts receivable bear interest at Prime plus 2%, or 10% as of September 30, 2024.

Previous wording

Our restricted cash, restricted cash equivalents and restricted certificates of deposit balances were $2.5 million and $0.7 million as of June 30, 2024 and December 31, 2023, respectively. Restricted deposits of $0.3 million as of each of June 30, 2024 and December 31, 2023 relate to a customer deposit for the purchase of railcars. Restricted deposits of $0.1 million as of each of June 30, 2024 and December 31, 2023 are used to collateralize standby letters of credit with respect to performance guarantees. The standby letters of credit outstanding as of June 30, 2024 are a requirement as long as the performance guarantees are in place. Restricted deposits of $2.1 million and $0.3 million as of June 30, 2024 and December 31, 2023, respectively, are used to collateralize foreign currency derivatives.

Current wording

Our restricted cash, restricted cash equivalents and restricted certificates of deposit balances were $3.7 million and $0.7 million as of September 30, 2024 and December 31, 2023, respectively. Restricted deposits of $0.3 million as of each of September 30, 2024 and December 31, 2023 relate to a customer deposit for the purchase of railcars. Restricted deposits of $0.1 million as of each of September 30, 2024 and December 31, 2023 are used to collateralize standby letters of credit with respect to performance guarantees. The standby letters of credit outstanding as of September 30, 2024 are a requirement as long as the performance guarantees are in place. Restricted deposits of $3.3 million and $0.3 million as of September 30, 2024 and December 31, 2023, respectively, are used to collateralize foreign currency derivatives.

Previous wording

Based on our current level of operations and known changes in planned volume based on our backlog, we believe that our cash balances will be sufficient to meet our expected liquidity needs for at least the next twelve months. Our long-term liquidity is contingent upon future operating performance and our ability to continue to meet financial covenants under our revolving credit facilities, any other indebtedness and the availability of additional financing if needed. We may also require additional capital in the future to fund working capital for future railcar demand, payments for contractual obligations, organic growth opportunities, including new plant and equipment and development of railcars, joint ventures, international expansion and acquisitions, and these capital requirements could be substantial.

Current wording

Based on our current level of operations and known changes in planned volume based on our backlog, we believe that our cash balances will be sufficient to meet our expected liquidity needs for at least the next twelve months. Our long-term liquidity is contingent upon future operating performance and our ability to continue to meet financial covenants under our revolving credit facilities, any other indebtedness and the availability of additional financing if needed. We may also require additional capital in the future to fund working capital for various reasons, such as future railcar demand; payments for contractual obligations; organic growth opportunities, including new plant and equipment and development of railcars; joint ventures; international expansion; and acquisitions, and these capital requirements could be substantial.

Previous wording

The following table summarizes our cash flow activities for the six months ended June 30, 2024 and 2023:

Current wording

The following table summarizes our cash flow activities for the nine months ended September 30, 2024 and 2023:

Previous wording

Our net cash provided by operating activities for the six months ended June 30, 2024 was $31.9 million compared to net cash used in operating activities of $25.6 million for the six months ended June 30, 2023. Our net cash provided by operating activities for the six months ended June 30, 2024 reflects changes in working capital, including a decrease in inventory of $63.7 million, offset by an increase in accounts receivable of $6.4 million. The decrease in inventory relates to inventory on hand at December 31, 2023 used in production of railcars delivered in the first half of 2024. The increase in accounts receivable relates to the timing of collections with current railcar builds based on contractual payment terms. Our net cash used in operating activities for the six months ended June 30, 2023 reflects changes in working capital, primarily an increase in inventory of $25.1 million related to inventory to be used in production of railcars to be delivered during the second half of 2023. VAT receivable decreased $3.0 million as a result of recovering VAT refunds during the six months ended June 30, 2023.

Current wording

Our net cash provided by operating activities for the nine months ended September 30, 2024 was $39.0 million compared to net cash used in operating activities of $26.4 million for the nine months ended September 30, 2023. Our net cash provided by operating activities for the nine months ended September 30, 2024 reflects changes in working capital, including a decrease in inventory of $40.9 million, offset by an increase in accounts receivable of $17.9 million. The decrease in inventory relates to raw materials on hand at December 31, 2023 used in production of railcars delivered in 2024, as well as finished goods on hand at December 31, 2023 delivered in 2024 due to the closure of the US-Mexico border in December 2023. The increase in accounts receivable relates to the timing of collections with current railcar builds based on contractual payment terms. Our net cash used in operating activities for the nine months ended September 30, 2023 reflects changes in working capital, primarily an increase in inventory of $57.2 million related to inventory to be used in production of railcars to be delivered during the fourth quarter of 2023, offset by an increase of $19.6 million customer deposits received during the nine months ended September 30, 2023.

Previous wording

Investing Activities. Net cash used in investing activities for the six months ended June 30, 2024 was $2.3 million and consisted of capital expenditures related to maintenance of current production lines of the Castaños Facility. Net cash provided by investing activities for the six months ended June 30, 2023 was $3.4 million and consisted of $8.4 million proceeds from the sale of railcars available for lease, net of selling costs, offset by capital expenditures of $5.0 million related to the expansion of the Castaños Facility.

Current wording

Investing Activities. Net cash used in investing activities for the nine months ended September 30, 2024 was $3.7 million and consisted of capital expenditures related to the enhancement of machinery and equipment on current production lines of our facility in Castaños, Coahuila, Mexico (the “Castaños Facility”). Net cash used in investing activities for the nine months ended September 30, 2023 was $0.6 million and consisted of $8.4 million proceeds from the sale of railcars available for lease, net of selling costs, offset by capital expenditures of $9.0 million related to the expansion of the Castaños Facility.

Previous wording

Financing Activities. Net cash used in financing activities for the six months ended June 30, 2024 was $30.8 million which included net repayments on revolving line of credit of $29.4 million and principal payments on the finance lease of $1.3 million. Net cash used in financing activities for the six months ended June 30, 2023 was $3.7 million which primarily included net repayments on revolving line of credit of $16.7 million and $13.3 million proceeds from the issuance of Series C Preferred Stock, net of issuance costs.

Current wording

Financing Activities. Net cash used in financing activities for the nine months ended September 30, 2024 was $31.0 million which included net repayments on revolving line of credit of $29.4 million and principal payments on the finance lease of $1.6 million. Net cash provided by financing activities for the nine months ended September 30, 2023 was $4.5 million which primarily included $13.3 million proceeds from the issuance of Series C Preferred Stock, net of issuance costs, partially offset by net repayments on revolving line of credit of $7.9 million.

Previous wording

Our capital expenditures were $2.3 million in the six months ended June 30, 2024, compared to $5.0 million in the six months ended June 30, 2023, a decrease primarily due to the completion of the Castaños Facility expansion in 2023. We anticipate capital expenditures during 2024 to be in the range of $5.0 million to $7.0 million, primarily related to maintenance of current production lines at the Castaños Facility.

Current wording

Our capital expenditures were $3.7 million in the nine months ended September 30, 2024, compared to $9.0 million in the nine months ended September 30, 2023, a decrease primarily due to the completion of the Castaños Facility expansion in 2023. We anticipate capital expenditures during 2024 to be in the range of $5.0 million to $6.0 million, primarily related to the enhancement of machinery and equipment on current production lines at the Castaños Facility.