RailAmerica Reports Second 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 second 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 $9.3 million, or $0.24 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 a loss of $13,000 in the 2004 comparable quarter. The 2005 results include a $0.01 per share benefit from a change in the State of Ohio's tax laws. The 2004 results include a $6.7 million ($5.6 million net-of-tax, or $0.16 per share) charge for the former CEO's retirement. 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 second quarter of 2005 increased $14.7 million, or 15.3%, to $110.8 million, from $96.1 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 second quarter of 2005 increased $9.6 million, or 10.0%, from the second quarter of 2004. "Same railroad" totals exclude revenue associated with 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. , or portions of railroads, sold or acquired by the Company after January January: see month. 1, 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 second quarter of 2005 was $15.0 million, compared to $10.7 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 second quarter of 2005 was 86.4% compared to 88.9% in the 2004 quarter. For the six months ended June June: see month. 30, 2005, the Company reported earnings from continuing operations of $15.5 million, or $0.40 per diluted share, compared to earnings from continuing operations of $4.7 million, or $0.14 per diluted share for the 2004 quarter. The 2005 results include a $0.01 per share charge from the sale of the LaHarpe - Hollis HOLLIS Harvard Online Library Information System (Harvard University Libraries' online catalog) line of the Toledo Toledo, city, Spain 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 ), and a $0.01 per share benefit from a change in the State of Ohio's tax laws. The 2004 results include the $0.16 per share charge for the former CEO's retirement. Consolidated revenue from continuing operations for the six months ended June 30, 2005 increased $28.8 million, or 15.0%, to $220.9 million, from $192.1 million in 2004. On a "same railroad" basis, revenue for the six months ended June 30, 2005 increased $18.3 million, or 9.5%, from the six months ended June 30, 2004. Consolidated operating income for the six months ended June 30, 2005 was $26.7 million, compared to $26.5 million for the six months ended June 30, 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 in the second quarter for four reasons. First, our earnings were in line with our forecast. Second, and more importantly, we are now seeing the results of the safety and training initiatives that we began late last year. Our casualty and insurance expense decreased to $4.6 million in the second quarter of 2005, from $5.1 million in the same quarter of 2004, and from $6.2 million in the first quarter of this year. Third, we have noticeably no·tice·a·ble adj. 1. Evident; observable: noticeable changes in temperature; a noticeable lack of friendliness. 2. Worthy of notice; significant. improved the operations of the Ohio Midland Subdivision. Finally, the operating ratio improvement from the first quarter of 2005 to the second quarter was significant, and was in large part due to our accomplishments regarding safety and the Ohio operations." 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, "Earlier this year, we provided 2005 guidance in the range of $0.94 to $1.02 per share. We are taking a cautious outlook for the second half of the year because of the possible negative effects of Class I congestion The condition of a network when there is not enough bandwidth to support the current traffic load. congestion - When the offered load of a data communication path exceeds the capacity. , equipment supply issues and decreases in traffic from the Powder River Basin The Powder River Basin is a region in southeast Montana and northeast Wyoming about 120 miles east to west and 200 miles north to south known for its coal deposits. It is both a topographic drainage and geologic structural basin. . On the positive side, this may be partially offset by an increase in our expected benefit from the track maintenance tax credit. On balance, we now anticipate that our annual earnings will be $0.93 per share, plus or minus 3 cents." RailAmerica, Inc. (NYSE:RRA) is a leading short line and regional rail service provider with 43 railroads 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 and six months ended June 30, 2005 and 2004
(in thousands, except earnings per share)
(unaudited)
Three Months Ended Six Months Ended
June 30 June 30
----------------------------------------------------------------------
2005 2004 2005 2004
----------------------------------------------------------------------
Operating revenue $110,816 $ 96,149 $220,873 $192,092
----------------------------------------------------------------------
Operating expenses:
Transportation 66,322 52,518 134,795 104,059
Selling, general and
administrative 21,724 26,997 44,356 49,316
Net loss (gain) on sale of
assets 313 (921) 208 (1,299)
Depreciation and amortization 7,426 6,884 14,840 13,527
----------------------------------------------------------------------
Total operating expenses 95,785 85,478 194,199 165,603
----------------------------------------------------------------------
Operating income 15,031 10,671 26,674 26,489
Interest and other expense (4,754) (8,249) (9,196) (16,453)
----------------------------------------------------------------------
Income from continuing
operations before income
taxes 10,277 2,422 17,478 10,036
Provision for income taxes 999 2,435 2,223 5,334
----------------------------------------------------------------------
Income (loss) from
continuing operations 9,278 (13) 15,255 4,702
Gain (loss) from sale of
discontinued operations, net
of income taxes -- 1,625 239 (2,326)
Income from discontinued
operations, net of income
taxes -- -- -- 511
----------------------------------------------------------------------
Net income $ 9,278 $ 1,612 $ 15,494 $ 2,887
======================================================================
Basic earnings (loss) per
common share:
Continuing operations $ 0.25 $ -- $ 0.41 $ 0.14
Discontinued operations -- 0.05 -- (0.05)
----------------------------------------------------------------------
Net income $ 0.25 $ 0.05 $ 0.41 $ 0.09
======================================================================
Diluted earnings (loss) per
common share:
Continuing operations $ 0.24 $ -- $ 0.40 $ 0.14
Discontinued operations -- 0.05 -- (0.05)
----------------------------------------------------------------------
Net income $ 0.24 $ 0.05 $ 0.40 $ 0.09
======================================================================
Weighted average common shares
outstanding:
Basic 37,691 33,963 37,568 33,350
Diluted 38,302 33,963 38,261 34,623
RAILAMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, 2005 and December 31, 2004
(in thousands, except share data)
(unaudited)
June 30, December 31,
2005 2004
----------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $ 24,864 $ 24,331
Accounts and notes receivable, net 63,361 63,414
Other current assets 11,786 14,935
----------------------------------------------------------------------
Total current assets 100,011 102,680
Property, plant and equipment, net 882,662 875,883
Other assets 37,358 37,580
----------------------------------------------------------------------
Total assets $1,020,031 $1,016,143
======================================================================
Liabilities and Stockholders' Equity
Current liabilities:
Current maturities of long-term debt $ 4,404 $ 6,097
Accounts payable 47,784 61,276
Accrued expenses 41,192 41,950
----------------------------------------------------------------------
Total current liabilities 93,380 109,323
Long-term debt, less current maturities 355,290 357,253
Subordinated debt 4,049 4,028
Deferred income taxes 150,347 149,306
Other liabilities 15,531 15,307
----------------------------------------------------------------------
Total liabilities 618,597 635,217
----------------------------------------------------------------------
Commitments and contingencies
Stockholders' equity:
Common stock 38 37
Additional paid-in capital and other 324,446 319,417
Retained earnings 52,300 36,806
Accumulated other comprehensive income 24,650 24,666
----------------------------------------------------------------------
Total stockholders' equity 401,434 380,926
----------------------------------------------------------------------
Total liabilities and stockholders' equity $1,020,031 $1,016,143
======================================================================
RAILAMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended June 30, 2005 and 2004
(in thousands)
(unaudited)
Six months ended
June 30,
2005 2004
----------------------------------------------------------------------
Cash flows from operating activities:
Net income $ 15,494 $ 2,887
Adjustments to reconcile net income to net cash
provided (used in) by operating activities:
Depreciation and amortization, including
amortization of deferred loan costs 15,461 24,291
Net gain on sale or disposal of properties (33) (1,954)
Non-cash CEO retirement costs -- 3,600
Deferred income taxes and other 834 10,274
Changes in operating assets and liabilities,
net of acquisitions and dispositions:
Accounts receivable 1,647 (4,868)
Other current assets 3,837 (1,389)
Accounts payable (13,556) (6,566)
Accrued expenses (903) 1,886
Other assets and liabilities 496 2,719
----------------------------------------------------------------------
Net cash provided by operating activities 23,277 30,880
----------------------------------------------------------------------
Cash flows from investing activities:
Purchase of property, plant and equipment (29,509) (41,887)
Proceeds from sale of assets, net of cash
on-hand 6,253 12,855
Acquisitions, net of cash acquired -- (24,645)
Deferred transaction costs and other (19) (2,602)
----------------------------------------------------------------------
Net cash used in investing activities (23,275) (56,279)
----------------------------------------------------------------------
Cash flows from financing activities:
Proceeds from issuance of long-term debt 7,800 78,256
Principal payments on long-term debt (11,455) (77,758)
Proceeds from exercise of stock options and
warrants 4,220 19,590
Deferred financing costs -- (26)
----------------------------------------------------------------------
Net cash provided by financing activities 565 20,062
----------------------------------------------------------------------
Effect of exchange rates on cash (34) (316)
----------------------------------------------------------------------
Net increase (decrease) in cash 533 (5,653)
Cash, beginning of period 24,331 13,714
----------------------------------------------------------------------
Cash, end of period $ 24,864 $ 8,061
======================================================================
RAILAMERICA, INC. AND SUBSIDIARIES
Selected Financial Information
(amounts in thousands)
(unaudited)
Three Months June 30,
% of % of
2005 Rev. 2004 Rev.
------ ------ ------ ------
Functional Classification
Operating revenue $ 110,816 100.0% $ 96,149 100.0%
----------------- -----------------
Operating expenses:
Maintenance of way 13,634 12.3% 10,999 11.4%
Maintenance of equipment 4,288 3.9% 3,491 3.6%
Transportation 35,952 32.4% 28,669 29.8%
Equipment rental 12,448 11.2% 9,359 9.7%
SG&A 21,724 19.6% 26,997 28.1%
Net gain on sale of assets 313 0.3% (921) -0.9%
Depreciation and amortization 7,426 6.7% 6,884 7.2%
----------------- -----------------
Total operating expenses 95,785 86.4% 85,478 88.9%
----------------- -----------------
Operating income $ 15,031 13.6% $ 10,671 11.1%
================= =================
Natural Classification
Operating revenue $ 110,816 100.0% $ 96,149 100.0%
Operating expenses:
Labor 34,651 31.3% 37,347 38.8%
Equipment rent 13,192 11.9% 9,729 10.1%
Purchased services 8,262 7.5% 6,720 7.0%
Diesel fuel 11,979 10.8% 8,370 8.7%
Casualties and insurance 4,645 4.2% 5,092 5.3%
Materials 2,807 2.5% 2,234 2.3%
Joint facilities 3,192 2.9% 2,869 3.0%
Other expense 9,318 8.4% 7,154 7.4%
Net gain on sale of assets 313 0.3% (921) -0.9%
Depreciation 7,426 6.7% 6,884 7.2%
----------------- -----------------
Total operating expenses 95,785 86.4% 85,478 88.9%
----------------- -----------------
Operating income $ 15,031 13.6% $ 10,671 11.1%
================= =================
RAILAMERICA, INC. AND SUBSIDIARIES
Selected Financial Information
(amounts in thousands)
(unaudited)
Six Months June 30,
% of % of
2005 Rev. 2004 Rev.
------ ------ ------ ------
Functional Classification
Operating revenue $ 220,873 100.0% $ 192,092 100.0%
----------------- -----------------
Operating expenses:
Maintenance of way 28,859 13.1% 21,808 11.4%
Maintenance of equipment 8,288 3.7% 7,009 3.6%
Transportation 72,290 32.7% 56,543 29.4%
Equipment rental 25,358 11.5% 18,699 9.7%
SG&A 44,356 20.1% 49,316 25.7%
Net (gain) loss on sale of
assets 208 0.1% (1,299) -0.7%
Depreciation and amortization 14,840 6.7% 13,527 7.1%
----------------- -----------------
Total operating expenses 194,199 87.9% 165,603 86.2%
----------------- -----------------
Operating income $ 26,674 12.1% $ 26,489 13.8%
================= =================
Natural Classification
Operating revenue $ 220,873 100.0% $ 192,092 100.0%
Operating expenses:
Labor 70,399 31.9% 69,801 36.3%
Equipment rent 26,707 12.1% 19,474 10.1%
Purchased services 15,978 7.2% 13,050 6.8%
Diesel fuel 24,654 11.2% 17,080 8.9%
Casualties and insurance 10,857 4.9% 8,873 4.6%
Materials 5,586 2.5% 4,391 2.3%
Joint facilities 6,381 2.9% 5,655 3.0%
Other expense 18,589 8.4% 15,049 7.8%
Net (gain) loss on sale of
assets 208 0.1% (1,299) -0.7%
Depreciation 14,840 6.7% 13,529 7.1%
----------------- -----------------
Total operating expenses 194,199 87.9% 165,603 86.2%
----------------- -----------------
Operating income $ 26,674 12.1% $ 26,489 13.8%
================= =================
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 June 30, Three months ended June 30,
2005 2004
--------------------------- ---------------------------
Average Average
Revenue Revenue
Freight Per Freight Per
Commodity Group Revenue Carloads Carload Revenue Carloads Carload
--------------- ------- -------- ------- ------- -------- -------
Lumber & Forest
Products $ 16,155 36,072 $ 448 $13,797 34,051 $ 405
Chemicals 11,911 29,060 410 10,142 26,196 387
Metal 9,893 25,900 382 8,233 22,285 369
Paper Products 9,502 26,889 353 8,182 26,275 311
Agricultural and
Farm Products 9,020 28,505 316 7,973 25,205 316
Coal 8,158 36,335 225 7,245 38,081 190
Food Products 7,130 21,408 333 5,810 17,544 331
Railroad
Equipment/Bridge
Traffic 6,096 50,181 121 5,660 44,397 127
Minerals 5,949 15,327 388 4,846 13,346 363
Petroleum
Products 5,483 14,193 386 4,302 11,973 359
Metallic/
Non-metallic
Ores 5,070 18,072 281 5,474 16,484 332
Other 3,278 11,045 297 2,223 9,032 246
Autos 1,547 5,946 260 1,744 7,772 224
Intermodal 918 8,137 113 886 8,206 108
-------------------------- -------------------------
Totals $100,110 327,070 $ 306 $86,518 300,847 $ 288
======== ======= ====== ======= ======= ======
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)
Six months ended June 30, Six months ended June 30,
2005 2004
--------------------------- ---------------------------
Average Average
Revenue Revenue
Freight Per Freight Per
Commodity Group Revenue Carloads Carload Revenue Carloads Carload
--------------- ------- -------- ------- ------- -------- -------
Lumber & Forest
Products $ 30,997 69,470 $ 446 $ 26,296 64,515 $ 408
Chemicals 24,296 59,599 408 20,044 51,448 390
Agricultural &
Farm Products 18,749 59,027 318 16,738 51,669 324
Paper Products 18,725 53,492 350 16,117 51,185 315
Metal 18,483 49,486 373 16,237 45,851 354
Coal 16,190 74,447 217 13,961 73,314 190
Food Products 14,575 44,282 329 11,908 35,921 332
Railroad
Equipment/Bridge
Traffic 12,743 105,805 120 11,879 94,841 125
Petroleum
Products 12,733 29,607 430 10,061 25,560 394
Minerals 10,995 28,986 379 9,170 25,472 360
Metallic/
Non-metallic
Ores 9,640 32,870 293 9,952 31,437 317
Other 5,971 19,551 305 4,513 17,221 262
Autos 3,074 12,690 242 3,640 15,838 230
Intermodal 1,963 17,636 111 1,782 16,763 106
-------------------------- -------------------------
Totals $199,134 656,948 $ 303 $172,299 601,035 $ 287
======== ======= ====== ======= ======= ======
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion