RailAmerica Reports First Quarter 2005 Results.BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla. -- RailAmerica RailAmerica, Inc. (NYSE: RRA), based in Boca Raton, Florida, is a holding company of several short-line railroads in the United States and Canada, as well as overseas. , Inc. (NYSE NYSE See: New York Stock Exchange :RRA RRA Registered Record Administrator. ) today reported first quarter 2005 earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $6.0 million, or $0.16 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $4.7 million, or $0.14 per diluted share, for the first quarter of 2004. These results include the $0.8 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta , or $0.6 million net of tax, $0.01 per diluted share charge for the previously announced Surface Transportation Board ordered sale of the La Harpe La Harpe is the name of several people in French history, among whom:
Toledo, city (1990 pop. 60,671), capital of Toledo province, central Spain, in Castile–La Mancha, on a granite hill surrounded on three sides by a gorge of the Tagus River. , Peoria Peoria (pēôr`ēə). 1 City (1990 pop. 50,618), Maricopa co., central Ariz., a suburb of Phoenix; settled 1897, inc. 1954. & Western Railway (TPW TPW The Perfect World (website) TPW Texas Parks & Wildlife TPW Total Precipitable Water TPW Turbo Pascal for Windows (Borland) TPW Toscana Photographic Workshops TPW Technical & Professional Writing ). Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenue from continuing operations for the first quarter of 2005 increased $14.1 million, or 14.7%, to $110.1 million, from $95.9 million in 2004. On a "same railroad railroad or railway, form of transportation most commonly consisting of steel rails, called tracks, on which freight cars, passenger cars, and other rolling stock are drawn by one locomotive or more. " basis, revenue for the first quarter of 2005 increased $8.7 million, or 9.1%, from the first quarter of 2004. Consolidated operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the first quarter of 2005 was $11.6 million compared to $15.8 million in 2004. The operating ratio Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: for the first quarter of 2005 was 89.4% compared to 83.5% in the 2004 quarter. The increase in the operating ratio was due to higher fuel and casualty expenses as well as higher operating costs operating costs npl → gastos mpl operacionales related to the recently acquired Midland Subdivision. Net income for the first quarter of 2005, which includes discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , was $6.2 million, or $0.16 per share, compared to $1.3 million, or $0.04 per share in 2004. Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by Swinburn, RailAmerica's Chief Executive Officer, said, "Overall, we are pleased with our results this quarter. A robust economy and high demand for rail services led to strong revenue and our first quarter earnings were in line with our forecast. We feel we are making good progress in improving our operations. Importantly, the training and safety initiatives that we previously announced are well underway, and we anticipate seeing the benefit of these programs throughout the remainder of the year." Michael Howe Michael Howe was a bushranger in Van Diemen's Land (now Tasmania). Howe was born at Pontefract, Yorkshire, England, in 1787. He served two years on a merchant vessel at Hull before deserting to join the navy as a seaman. , RailAmerica's Executive Vice President and Chief Financial Officer said, "While fuel remains a challenge, 60% of our consumption is protected, 30% by hedges and 30% by fuel surcharges. As a result of the pay down of debt and the refinancing Refinancing An extension and/or increase in amount of existing debt. of our credit facility in third quarter 2004, our interest expense in the first quarter of 2005 declined to $4.4 million from $8.1 million in the 2004 quarter. We are pleased that our net debt to capital remains at 47.4%. Additionally, our effective tax rate for the first quarter was 17% due to the maintenance tax credit provision of the 2004 JOBS Act." RailAmerica, Inc. (NYSE:RRA) is a leading short line and regional rail service provider with 44 railroads rail·road n. 1. A road composed of parallel steel rails supported by ties and providing a track for locomotive-drawn trains or other wheeled vehicles. 2. operating approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 8,800 miles in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . The Company is a member of the Russell Russell, English noble family. It first appeared prominently in the reign of Henry VIII when John Russell, 1st earl of Bedford, 1486?–1555, rose to military and diplomatic importance. 2000(R) Index. Its website may be found at http://www.railamerica.com. DISCLAIMER (networking) disclaimer - Statement ritually appended to many Usenet postings (sometimes automatically, by the posting software) reiterating the fact (which should be obvious, but is easily forgotten) that the article reflects its author's opinions and not necessarily those of the REGARDING FORWARD-LOOKING STATEMENTS forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : This press release contains forward-looking statements regarding future events that involve risks and uncertainties that could cause actual results to differ materially. Forward-looking statements speak only as of the date the statement was made. The Company assumes no obligation to update forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. If the Company does update any forward-looking statement, no inference (logic) inference - The logical process by which new facts are derived from known facts by the application of inference rules. See also symbolic inference, type inference. should be drawn that the Company will make additional updates with respect to that statement or any other forward-looking statements. We refer you to the documents that RailAmerica files from time to time with the Securities and Exchange Commission, such as the Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , Form 10-Q Form 10-Q See 10-Q. and Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. , which contain additional important factors that could cause its actual results to differ from its current expectations and from the forward-looking statements contained in this press release.
RAILAMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the three months ended March 31, 2005 and 2004
(in thousands, except earnings per share)
(unaudited)
Three months ended
March 31,
2005 2004
----------------------------------------------------------------------
Operating revenue $110,057 $95,943
----------------------------------------------------------------------
Operating expenses:
Transportation 68,473 51,541
Selling, general and administrative 22,632 22,319
Net gain on sale of assets (105) (378)
Depreciation and amortization 7,414 6,643
----------------------------------------------------------------------
Total operating expenses 98,414 80,125
----------------------------------------------------------------------
Operating income 11,643 15,818
Interest and other expense (4,442) (8,204)
----------------------------------------------------------------------
Income from continuing operations before income
taxes 7,201 7,614
Provision for income taxes 1,224 2,899
----------------------------------------------------------------------
Income from continuing operations 5,977 4,715
Gain (loss) from sale of discontinued operations,
net of income taxes 239 (3,951)
Income from discontinued operations, net of income
taxes -- 511
----------------------------------------------------------------------
Net income $6,216 $1,275
======================================================================
Basic earnings (loss) per common share:
Continuing operations $0.16 $0.14
Discontinued operations 0.01 (0.10)
----------------------------------------------------------------------
Net income $0.17 $0.04
======================================================================
Diluted earnings (loss) per common share:
Continuing operations $0.16 $0.14
Discontinued operations 0.00 (0.10)
----------------------------------------------------------------------
Net income $0.16 $0.04
======================================================================
Weighted average common shares outstanding:
Basic 37,445 32,737
====================
Diluted 38,266 33,894
====================
RAILAMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 2005 and December 31, 2004
(in thousands, except share data)
(unaudited)
March 31, Dec. 31,
2005 2004
----------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $9,777 $24,331
Accounts and notes receivable, net 74,660 63,414
Other current assets 14,424 14,935
----------------------------------------------------------------------
Total current assets 98,861 102,680
Property, plant and equipment, net 877,012 875,883
Other assets 37,749 37,580
----------------------------------------------------------------------
Total assets $1,013,622 $1,016,143
======================================================================
Liabilities and Stockholders' Equity
Current liabilities:
Current maturities of long-term debt $5,926 $6,097
Accounts payable 43,846 61,276
Accrued expenses 42,579 41,950
----------------------------------------------------------------------
Total current liabilities 92,351 109,323
Long-term debt, less current maturities 355,422 357,253
Subordinated debt 4,039 4,028
Deferred income taxes 151,893 149,306
Other liabilities 14,984 15,307
----------------------------------------------------------------------
Total liabilities 618,689 635,217
----------------------------------------------------------------------
Commitments and contingencies
Stockholders' equity:
Common stock 38 37
Additional paid-in capital and other 323,466 319,417
Retained earnings 43,022 36,806
Accumulated other comprehensive income 28,407 24,666
----------------------------------------------------------------------
Total stockholders' equity 394,933 380,926
----------------------------------------------------------------------
Total liabilities and stockholders' equity $1,013,622 $1,016,143
======================================================================
RAILAMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended March 31, 2005 and 2004
(in thousands)
(unaudited)
2005 2004
----------------------------------------------------------------------
Cash flows from operating activities:
Net income $6,216 $1,275
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization, including
amortization of deferred loan costs 7,784 11,849
Net gain on sale or disposal of properties (345) (378)
Deferred income taxes and other 1,430 6,768
Changes in operating assets and liabilities,
net of acquisitions and dispositions:
Accounts receivable (7,640) (4,517)
Other current assets 1,078 (554)
Accounts payable (17,488) (8,254)
Accrued expenses 422 (1,425)
Other assets and liabilities (146) 3,971
----------------------------------------------------------------------
Net cash provided by (used in) operating
activities (8,689) 8,735
----------------------------------------------------------------------
Cash flows from investing activities:
Purchase of property, plant and equipment (13,518) (18,926)
Proceeds from sale of assets, net of cash
on-hand 6,054 9,501
Acquisitions, net of cash acquired -- (24,645)
Deferred transaction costs and other -- (864)
----------------------------------------------------------------------
Net cash used in investing activities (7,464) (34,934)
----------------------------------------------------------------------
Cash flows from financing activities:
Proceeds from issuance of long-term debt -- 57,274
Principal payments on long-term debt (2,000) (41,494)
Proceeds from exercise of stock options and
warrants 3,695 4,671
Deferred financing costs -- (26)
----------------------------------------------------------------------
Net cash provided by financing activities 1,695 20,425
----------------------------------------------------------------------
Effect of exchange rates on cash (96) (121)
----------------------------------------------------------------------
Net decrease in cash (14,554) (5,895)
Cash, beginning of period 24,331 13,714
----------------------------------------------------------------------
Cash, end of period $9,777 $7,819
----------------------------------------------------------------------
RAILAMERICA, INC. AND SUBSIDIARIES
Selected Financial Information
(amounts in thousands)
(unaudited)
Three Months March 31,
% of % of
2005 Rev. 2004 Rev.
---------- ------- ---------- -------
Functional Classification
Operating revenue $110,057 100.0% $ 95,943 100.0%
------------------ ------------------
Operating expenses:
Maintenance of way 15,225 13.8% 10,810 11.3%
Maintenance of equipment 4,000 3.6% 3,516 3.7%
Transportation 36,338 33.0% 27,874 29.0%
Equipment rental 12,910 11.7% 9,341 9.7%
SG&A 22,632 20.6% 22,319 23.3%
Net gain on sale of assets (105) -0.1% (378) -0.4%
Depreciation and amortization 7,414 6.8% 6,643 6.9%
------------------ ------------------
Total operating expenses 98,414 89.4% 80,125 83.5%
------------------ ------------------
Operating income $ 11,643 10.6% $ 15,818 16.5%
================== ==================
Natural Classification
Operating revenue $110,057 100.0% $95,943 100.0%
Operating expenses:
Labor 35,749 32.5% 32,453 33.8%
Equipment rent 13,514 12.3% 9,746 10.2%
Purchased services 7,716 7.0% 6,330 6.6%
Diesel fuel 12,675 11.5% 8,710 9.1%
Casualties and insurance 6,212 5.6% 3,781 3.9%
Materials 2,779 2.5% 2,158 2.3%
Joint facilities 3,189 2.9% 2,786 2.9%
Other expense 9,271 8.4% 7,896 8.2%
Net gain on sale of assets (105) -0.1% (378) -0.4%
Depreciation 7,414 6.8% 6,643 6.9%
------------------ ------------------
Total operating expenses 98,414 89.4% 80,125 83.5%
------------------ ------------------
Operating income
$ 11,643 10.6% $15,818 16.5%
================== ==================
RAILAMERICA, INC. AND SUBSIDIARIES
Railroad Freight Revenue, Carloads And Average Revenue
Per Carload
Comparison by Commodity Group
(dollars in thousands, except average revenue per carload)
(unaudited)
Three months ended Three months ended
March 31, March 31,
2005 2004
-------------------------- --------------------------
Average Average
Revenue Revenue
Commodity Freight Per Freight Per
Group Revenue Carloads Carload Revenue Carloads Carload
-------------- -------- -------- -------- -------- -------- --------
Lumber &
Forest
Products $14,842 33,398 $444 $12,499 30,464 $410
Chemicals 12,385 30,539 406 9,902 25,252 392
Agricultural &
Farm Products 9,729 30,522 319 8,765 26,464 331
Paper Products 9,223 26,603 347 7,935 24,910 319
Metal 8,590 23,586 364 8,004 23,566 340
Coal 8,032 38,112 211 6,716 35,233 191
Food Products 7,445 22,874 325 6,098 18,377 332
Petroleum
Products 7,250 15,414 470 5,759 13,587 424
Railroad
Equipment/
Bridge
Traffic 6,647 55,624 119 6,219 50,444 123
Minerals 5,046 13,659 369 4,324 12,126 357
Metallic/Non-
metallic Ores 4,570 14,798 309 4,478 14,953 299
Other 2,693 8,506 317 2,290 8,189 280
Autos 1,527 6,744 226 1,896 8,066 235
Intermodal 1,045 9,499 110 896 8,557 105
Totals $99,024 329,878 $300 $85,781 300,188 $286
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