RailAmerica, Inc. Reports Fourth Quarter and Full Year 2011 Results
JACKSONVILLE, Fla., Feb. 8, 2012 /PRNewswire/ --
Fourth Quarter Highlights
- Revenue increased 15% versus fourth quarter 2010.
- Net income of $0.29 per share.
- Adjusted net income(1) of $0.33 per share.
RailAmerica, Inc. (NYSE: RA) today reported financial results for the quarter ended December 31, 2011. Fourth quarter 2011 revenue increased 15% to $147.3 million from $127.6 million in the fourth quarter of 2010. Freight revenue increased 5% to $103.3 million with average revenue per car up 7% and carloads down 2%. Non-freight revenue increased 48% to $44 million.
RailAmerica President and Chief Executive Officer John Giles, said, "Our solid finish to 2011 gives us significant momentum as we move into the new year. Operating income excluding 45G credits, impairments and asset sales increased 30% in the fourth quarter. This strong increase was driven by continued execution of our pricing and productivity initiatives combined with excellent non-freight revenue growth led by Atlas."
Giles continued, "Adding to the strong foundation of our core operations, we have achieved excellent traction in corporate development and continue making strides in reducing our debt costs. Last week we announced three investments - the acquisition of the Marquette Railroad and controlling investments in both the Wellsboro & Corning Railroad and the Industrial Waste Group, a transloading operation. In addition, we completed another $74 million redemption of our 9.25% senior notes and announced a tender offer for a substantial portion of the remaining senior notes."
RailAmerica reported fourth quarter 2011 net income of $15.0 million, or $0.29 per diluted share. This compares to $17.9 million, or $0.33 per diluted share in the fourth quarter of 2010. Noteworthy items impacting the fourth quarters of 2011 and 2010 include:
- 45G tax credits: Congress extended the credits in December 2010 (for 2010 and 2011) resulting in the full-year income statement amount of $17.6 million benefiting the fourth quarter of 2010. In 2011, credits totaling $16.7 million were recognized in the income statement throughout the year with $3.6 million occurring in the fourth quarter. In addition to the income statement impact, a portion of the 45G tax credit was recognized as credits to capital expenditures in 2010 and 2011.
- Amortization of swap termination costs: Non-cash charges of $2.3 million and $4.3 million were recorded in interest expense during the fourth quarters of 2011 and 2010, respectively, due to the June 2009 termination of an interest rate swap agreement.
- Severance costs: Fourth quarter 2011 labor and benefits costs include $1.6 million in executive severance expense.
- Taxes: Cash taxes paid in the fourth quarter of 2011 were $1.0 million compared to the financial statement provision for income tax expense of $5.3 million.
For the Three Months Ended December 31, |
|||||||
($ in thousands except EPS) |
2010 |
2011 |
|||||
Pre Tax |
EPS |
Pre Tax |
EPS |
||||
45G benefit |
$17,589 |
$0.20 |
$3,552 |
$0.04 |
|||
Amortization of swap termination costs |
(4,309) |
(0.05) |
(2,283) |
(0.03) |
|||
Severance |
- |
- |
(1,552) |
(0.02) |
|||
Note: Effective tax rate of 39%. |
|||||||
The Company reported operating income of $37.2 million in the fourth quarter of 2011 compared to $43.8 million in the fourth quarter of 2010. Fourth quarter 2010 and 2011 operating income and expenses were impacted by 45G credits and severance as discussed above. In addition, fourth quarter 2011 operating expenses reflect higher purchased services and materials expenses largely due to growth in engineering services. Reductions in personal injury reserves and derailment costs resulted in lower casualty and insurance expense. Operating income excluding the impact of 45G benefit, asset sales and impairments is shown below.
For the Three Months Ended |
||||
December 31, |
||||
2010 |
2011 |
|||
($ in thousands) |
||||
Operating revenue |
$127,636 |
$147,306 |
||
Operating expense |
83,881 |
110,073 |
||
Operating income, reported |
43,755 |
37,233 |
||
Less: Benefit from 45G credits |
(17,589) |
(3,552) |
||
Operating income excluding 45G Benefit (1) |
26,166 |
33,681 |
||
Net (gain) on sale of assets |
(474) |
(201) |
||
Operating income excluding 45G Benefit, Asset Sales and Impairments (1) |
$25,692 |
$33,480 |
||
(1) See schedule at the end of press release for a reconciliation of non-GAAP financial measure |
||||
For the full year of 2011, operating revenue increased 12% to $551.1 million from $490.3 million in 2010. Full year 2011 net income was $36.9 million, or $0.70 per diluted share. This compares to net income of $19.1 million, or $0.35 per diluted share for full year 2010.
As previously announced, RailAmerica, Inc. will present its fourth quarter earnings on Thursday, February 9, 2012 at 8:30 a.m. Eastern Time via live teleconference and webcast. Those interested in participating via teleconference may dial (877) 756-2088. Callers outside the U.S. may dial (706) 643-9763. The conference ID number is 38755724. Participants should dial in no later than 10 minutes prior to the call. Presentation materials and access to the live webcast will be available in the Investors section of RailAmerica's website (www.railamerica.com). Following the earnings call, a webcast replay will be archived on the Company's website. A telephone replay will be available through February 16, 2012 beginning approximately two hours after the call. The recording can be accessed by dialing (800) 585-8367 or (404) 537-3406. The conference ID number is 38755724.
RailAmerica, Inc. owns and operates short-line and regional freight railroads in North America, operating a portfolio of 43 individual railroads with approximately 7,400 miles of track in 27 U.S. states and three Canadian provinces.
Cautionary Note Regarding Forward-Looking Statements
Certain items in this press release and other information we provide from time to time may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not necessarily limited to, statements relating to future events and financial performance. Words such as "anticipates," "expects," "intends," "plans," "projects," "believes," "appears," "may," "will," "would," "could," "should," "seeks," "estimates" and variations on these words and similar expressions are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of factors that could lead to actual results materially different from those described in the forward-looking statements. RailAmerica, Inc. can give no assurance that its expectations will be attained. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. Factors that could have a material adverse effect on our operations and future prospects or that could cause actual results to differ materially from RailAmerica, Inc.'s expectations include, but are not limited to, prolonged capital markets disruption and volatility, general economic conditions and business conditions, our relationships with Class I railroads and other connecting carriers, our ability to obtain railcars and locomotives from other providers on which we are currently dependent, legislative and regulatory developments including rulings by the Surface Transportation Board or the Railroad Retirement Board, strikes or work stoppages by our employees, our transportation of hazardous materials by rail, rising fuel costs, goodwill assessment risks, acquisition risks, competitive pressures within the industry, risks related to the geographic markets in which we operate; and other risks detailed in RailAmerica, Inc.'s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. In addition, new risks and uncertainties emerge from time to time, and it is not possible for RailAmerica, Inc. to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. RailAmerica, Inc. expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.
(1) See schedule at end of press release for a reconciliation of non-GAAP financial measure.
RAILAMERICA, INC. AND SUBSIDIARIES |
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
(Unaudited) |
||||||||
For the Quarters Ended |
For the Years Ended |
|||||||
December 31, |
December 31, |
|||||||
2010 |
2011 |
2010 |
2011 |
|||||
(In thousands, except per share data) |
||||||||
Operating revenue |
$ 127,636 |
$ 147,306 |
$ 490,291 |
$ 551,123 |
||||
Operating expenses: |
||||||||
Labor and benefits |
39,612 |
39,819 |
153,993 |
164,674 |
||||
Equipment rents |
8,262 |
8,215 |
34,119 |
34,816 |
||||
Purchased services |
9,913 |
16,646 |
37,971 |
48,075 |
||||
Diesel fuel |
11,794 |
12,974 |
43,316 |
54,861 |
||||
Casualties and insurance |
4,319 |
2,749 |
17,574 |
13,844 |
||||
Materials |
5,026 |
9,004 |
19,607 |
27,896 |
||||
Joint facilities |
2,122 |
2,453 |
8,667 |
9,667 |
||||
Other expenses |
9,064 |
9,538 |
35,226 |
39,414 |
||||
Track maintenance expense reimbursement |
(17,589) |
(3,552) |
(17,589) |
(16,714) |
||||
Net gain on sale of assets |
(474) |
(201) |
(2,191) |
(50) |
||||
Impairment of assets |
- |
- |
- |
5,169 |
||||
Depreciation and amortization |
11,832 |
12,428 |
45,091 |
47,849 |
||||
Total operating expenses |
83,881 |
110,073 |
375,784 |
429,501 |
||||
Operating income |
43,755 |
37,233 |
114,507 |
121,622 |
||||
Interest expense, including amortization costs |
(19,183) |
(17,397) |
(83,775) |
(71,923) |
||||
Other income (loss) |
418 |
527 |
(4,759) |
1,331 |
||||
Income before income taxes |
24,990 |
20,363 |
25,973 |
51,030 |
||||
Provision for income taxes |
7,106 |
5,338 |
6,856 |
14,162 |
||||
Net income |
$ 17,884 |
$ 15,025 |
$ 19,117 |
$ 36,868 |
||||
Basic earnings per common share: |
||||||||
Net income |
$ 0.33 |
$ 0.29 |
$ 0.35 |
$ 0.70 |
||||
Diluted earnings per common share: |
||||||||
Net income |
$ 0.33 |
$ 0.29 |
$ 0.35 |
$ 0.70 |
||||
Weighted Average common shares outstanding: |
||||||||
Basic |
54,864 |
51,059 |
54,793 |
52,519 |
||||
Diluted |
54,864 |
51,059 |
54,793 |
52,519 |
||||
RAILAMERICA, INC. AND SUBSIDIARIES |
||||
CONSOLIDATED BALANCE SHEETS |
||||
(Unaudited) |
||||
December 31, |
December 31, |
|||
(In thousands, except share data) |
||||
ASSETS |
||||
Current assets: |
||||
Cash and cash equivalents |
$ 152,968 |
$ 90,999 |
||
Accounts and notes receivable, net of allowance of $6,767 and $7,291, respectively |
74,668 |
96,813 |
||
Current deferred tax assets |
12,769 |
9,886 |
||
Other current assets |
15,200 |
17,967 |
||
Total current assets |
255,605 |
215,665 |
||
Property, plant and equipment, net |
981,622 |
1,021,545 |
||
Intangible assets |
140,546 |
134,851 |
||
Goodwill |
212,495 |
211,841 |
||
Other assets |
13,385 |
13,478 |
||
Total assets |
$ 1,603,653 |
$ 1,597,380 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
Current liabilities: |
||||
Current maturities of long-term debt |
$ 403 |
$ 71,991 |
||
Accounts payable |
66,258 |
78,844 |
||
Accrued expenses |
36,913 |
28,616 |
||
Total current liabilities |
103,574 |
179,451 |
||
Long-term debt, less current maturities |
2,147 |
1,827 |
||
Senior secured notes |
571,161 |
501,876 |
||
Deferred income taxes |
202,985 |
213,421 |
||
Other liabilities |
19,037 |
20,680 |
||
Total liabilities |
898,904 |
917,255 |
||
Commitments and contingencies |
||||
Stockholders' equity: |
||||
Common stock, $0.01 par value, 400,000,000 shares authorized; 54,859,261 shares issued and outstanding at December 31, 2010; and 50,605,440 shares issued and outstanding at December 31, 2011 |
549 |
506 |
||
Additional paid in capital and other |
636,757 |
591,341 |
||
Retained earnings |
65,503 |
84,272 |
||
Accumulated other comprehensive income |
1,940 |
4,006 |
||
Total stockholders' equity |
704,749 |
680,125 |
||
Total liabilities and stockholders' equity |
$ 1,603,653 |
$ 1,597,380 |
||
RAILAMERICA, INC. AND SUBSIDIARIES |
||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||
(Unaudited) |
||||
For the Years Ended |
||||
December 31, |
||||
2010 |
2011 |
|||
(In thousands) |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||
Net income |
$ 19,117 |
$ 36,868 |
||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||
Depreciation and amortization, including amortization of debt issuance costs classified in interest expense |
49,847 |
52,702 |
||
Amortization of swap termination costs |
20,891 |
11,908 |
||
Net gain on sale or disposal of properties |
(2,191) |
(50) |
||
Impairment of assets |
- |
5,169 |
||
Loss on extinguishment of debt |
8,357 |
- |
||
Recognition of deferred financing costs |
- |
719 |
||
Equity compensation costs |
7,534 |
10,219 |
||
Deferred income taxes and other |
2,765 |
10,524 |
||
Changes in operating assets and liabilities, net of acquisitions and dispositions: |
||||
Accounts receivable |
(2,435) |
(22,283) |
||
Other current assets |
7,512 |
(2,778) |
||
Accounts payable |
7,574 |
9,465 |
||
Accrued expenses |
1,268 |
(8,125) |
||
Other assets and liabilities |
(3,070) |
(2,049) |
||
Net cash provided by operating activities |
117,169 |
102,289 |
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||
Purchase of property, plant and equipment |
(60,281) |
(130,779) |
||
NECR government grant reimbursements |
2,455 |
37,212 |
||
Proceeds from sale of assets |
4,108 |
16,353 |
||
Acquisitions, net of cash acquired |
(23,926) |
(12,716) |
||
Deferred costs and other |
- |
(144) |
||
Net cash used in investing activities |
(77,644) |
(90,074) |
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||
Principal payments on long-term debt |
(622) |
(428) |
||
Repurchase of senior secured notes |
(76,220) |
- |
||
Other |
- |
12 |
||
Repurchase of common stock |
- |
(70,574) |
||
Costs associated with sale of common stock |
(106) |
- |
||
Deferred financing costs paid |
(224) |
(3,028) |
||
Net cash used in financing activities |
(77,172) |
(74,018) |
||
Effect of exchange rates on cash |
397 |
(166) |
||
Net decrease in cash |
(37,250) |
(61,969) |
||
Cash, beginning of period |
190,218 |
152,968 |
||
Cash, end of period |
$ 152,968 |
$ 90,999 |
||
RAILAMERICA, INC. AND SUBSIDIARIES SELECTED FINANCIAL INFORMATION (Dollars in thousands) (Unaudited) |
||||||||
Quarters Ended December 31, |
||||||||
2010 |
2011 |
|||||||
Operating revenue |
$ 127,636 |
100.0% |
$ 147,306 |
100.0% |
||||
Operating expenses: |
||||||||
Labor and benefits |
39,612 |
31.0% |
39,819 |
27.0% |
||||
Equipment rents |
8,262 |
6.5% |
8,215 |
5.5% |
||||
Purchased services |
9,913 |
7.8% |
16,646 |
11.3% |
||||
Diesel fuel |
11,794 |
9.2% |
12,974 |
8.8% |
||||
Casualties and insurance |
4,319 |
3.4% |
2,749 |
1.9% |
||||
Materials |
5,026 |
3.9% |
9,004 |
6.1% |
||||
Joint facilities |
2,122 |
1.7% |
2,453 |
1.7% |
||||
Other expenses |
9,064 |
7.1% |
9,538 |
6.5% |
||||
Track maintenance expense reimbursement |
(17,589) |
-13.8% |
(3,552) |
-2.4% |
||||
Net gain on sale of assets |
(474) |
-0.4% |
(201) |
-0.1% |
||||
Depreciation and amortization |
11,832 |
9.3% |
12,428 |
8.4% |
||||
Total operating expenses |
83,881 |
65.7% |
110,073 |
74.7% |
||||
Operating income |
$ 43,755 |
34.3% |
$ 37,233 |
25.3% |
||||
Years Ended December 31, |
||||||||
2010 |
2011 |
|||||||
Operating revenue |
$ 490,291 |
100.0% |
$ 551,123 |
100.0% |
||||
Operating expenses: |
||||||||
Labor and benefits |
153,993 |
31.4% |
164,674 |
29.9% |
||||
Equipment rents |
34,119 |
7.0% |
34,816 |
6.3% |
||||
Purchased services |
37,971 |
7.7% |
48,075 |
8.7% |
||||
Diesel fuel |
43,316 |
8.8% |
54,861 |
10.0% |
||||
Casualties and insurance |
17,574 |
3.6% |
13,844 |
2.5% |
||||
Materials |
19,607 |
4.0% |
27,896 |
5.0% |
||||
Joint facilities |
8,667 |
1.8% |
9,667 |
1.8% |
||||
Other expenses |
35,226 |
7.2% |
39,414 |
7.1% |
||||
Track maintenance expense reimbursement |
(17,589) |
-3.6% |
(16,714) |
-3.0% |
||||
Net gain on sale of assets |
(2,191) |
-0.5% |
(50) |
0.0% |
||||
Impairment of assets |
- |
0.0% |
5,169 |
0.9% |
||||
Depreciation and amortization |
45,091 |
9.2% |
47,849 |
8.7% |
||||
Total operating expenses |
375,784 |
76.6% |
429,501 |
77.9% |
||||
Operating income |
$ 114,507 |
23.4% |
$ 121,622 |
22.1% |
||||
RAILAMERICA, INC. AND SUBSIDIARIES Railroad Freight Revenue, Carloads and Average Freight Revenue Per Carload Comparison by Commodity Group (Unaudited) |
|||||||||||||
Quarter Ended |
Quarter Ended |
||||||||||||
December 31, 2010 |
December 31, 2011 |
||||||||||||
Average Freight |
Average Freight |
||||||||||||
Freight |
Revenue per |
Freight |
Revenue per |
||||||||||
Revenue |
Carloads |
Carload |
Revenue |
Carloads |
Carload |
||||||||
(Dollars in thousands, except average freight revenue per carload) |
|||||||||||||
Agricultural Products |
$ 17,418 |
35,248 |
$ 494 |
$ 16,289 |
32,827 |
$ 496 |
|||||||
Chemicals |
15,109 |
24,197 |
624 |
14,666 |
21,180 |
692 |
|||||||
Metallic Ores and Metals |
8,627 |
15,412 |
560 |
11,155 |
17,436 |
640 |
|||||||
Non-Metallic Minerals and Products |
8,641 |
19,752 |
437 |
9,696 |
20,482 |
473 |
|||||||
Coal |
10,219 |
44,593 |
229 |
9,333 |
40,925 |
228 |
|||||||
Pulp, Paper and Allied Products |
9,571 |
16,258 |
589 |
8,353 |
14,878 |
561 |
|||||||
Food or Kindred Products |
7,206 |
14,195 |
508 |
8,014 |
14,680 |
546 |
|||||||
Forest Products |
6,331 |
10,957 |
578 |
7,821 |
12,149 |
644 |
|||||||
Waste and Scrap Materials |
5,844 |
13,760 |
425 |
6,809 |
14,884 |
457 |
|||||||
Petroleum |
5,051 |
10,946 |
461 |
4,771 |
9,776 |
488 |
|||||||
Other |
2,602 |
7,785 |
334 |
3,589 |
8,021 |
447 |
|||||||
Motor Vehicles |
1,368 |
2,351 |
582 |
2,793 |
4,610 |
606 |
|||||||
Total |
$ 97,987 |
215,454 |
$ 455 |
$ 103,289 |
211,848 |
$ 488 |
|||||||
Year Ended |
Year Ended |
||||||||||||
December 31, 2010 |
December 31, 2011 |
||||||||||||
Average Freight |
Average Freight |
||||||||||||
Freight |
Revenue per |
Freight |
Revenue per |
||||||||||
Revenue |
Carloads |
Carload |
Revenue |
Carloads |
Carload |
||||||||
(Dollars in thousands, except average freight revenue per carload) |
|||||||||||||
Agricultural Products |
$ 63,999 |
132,952 |
$ 481 |
$ 65,177 |
126,727 |
$ 514 |
|||||||
Chemicals |
59,038 |
96,105 |
614 |
63,374 |
94,615 |
670 |
|||||||
Metallic Ores and Metals |
37,825 |
66,626 |
568 |
43,431 |
70,251 |
618 |
|||||||
Pulp, Paper and Allied Products |
37,379 |
65,308 |
572 |
39,609 |
67,678 |
585 |
|||||||
Non-Metallic Minerals and Products |
34,646 |
80,376 |
431 |
39,329 |
84,614 |
465 |
|||||||
Coal |
39,880 |
178,735 |
223 |
34,460 |
151,687 |
227 |
|||||||
Forest Products |
27,017 |
47,048 |
574 |
30,516 |
48,884 |
624 |
|||||||
Food or Kindred Products |
28,027 |
56,812 |
493 |
30,161 |
56,601 |
533 |
|||||||
Waste and Scrap Materials |
23,765 |
57,121 |
416 |
24,914 |
58,459 |
426 |
|||||||
Petroleum |
19,542 |
41,952 |
466 |
18,470 |
37,712 |
490 |
|||||||
Other |
10,937 |
29,883 |
366 |
14,118 |
30,001 |
471 |
|||||||
Motor Vehicles |
6,694 |
11,553 |
579 |
7,591 |
12,731 |
596 |
|||||||
Total |
$ 388,749 |
864,471 |
$ 450 |
$ 411,150 |
839,960 |
$ 489 |
|||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES
Adjusted net income (loss) is a supplemental measure of profitability that is not calculated or presented in accordance with U.S. generally accepted accounting principles ("GAAP"). We use non-GAAP financial measures as a supplement to our GAAP results in order to provide a more complete understanding of the factors and trends affecting our business. However, Adjusted net income (loss) has limitations as an analytical tool. It is not a measurement of our profitability under GAAP and should not be considered as an alternative to Net income (loss) as a measure of profitability.
Adjusted net income (loss) assists us in measuring our performance and profitability of our operations without the impact of transaction costs related to debt and credit facility extinguishment, acquisitions, impairment of assets and swap termination. The following table sets forth the reconciliation of Adjusted net income (loss).
2011 |
||||||||||||
(In thousands, except per share data) |
Q1 |
Q2 |
Q3 |
Q4 |
Q4 YTD |
|||||||
After Tax |
Per Share |
After Tax |
Per Share |
After Tax |
Per Share |
After Tax |
Per Share |
After Tax |
Per Share |
|||
Net income (loss) |
$4,085 |
$0.07 |
$8,700 |
$0.17 |
$9,058 |
$0.17 |
$15,025 |
$0.29 |
$36,868 |
$0.70 |
||
Add: |
||||||||||||
Amortization of swap termination costs |
2,243 |
0.04 |
1,953 |
0.04 |
1,675 |
0.03 |
1,393 |
0.03 |
7,264 |
0.14 |
||
Impairment of assets |
- |
- |
1,964 |
0.04 |
1,189 |
0.02 |
- |
- |
3,153 |
0.06 |
||
Loss on extinguishment of credit facility |
- |
- |
- |
- |
439 |
0.01 |
- |
- |
439 |
0.01 |
||
Acquisition expense |
44 |
0.00 |
148 |
0.00 |
124 |
0.00 |
332 |
0.01 |
648 |
0.01 |
||
Adjusted net income (loss) |
$6,372 |
$0.12 |
$12,765 |
$0.24 |
$12,485 |
$0.24 |
$16,750 |
$0.33 |
$48,372 |
$0.92 |
||
Weighted Average common shares outstanding (diluted) |
54,651 |
52,282 |
52,083 |
51,059 |
52,519 |
|||||||
2010 |
||||||||||||
(In thousands, except per share data) |
Q1 |
Q2 |
Q3 |
Q4 |
Q4 YTD |
|||||||
After Tax |
Per Share |
After Tax |
Per Share |
After Tax |
Per Share |
After Tax |
Per Share |
After Tax |
Per Share |
|||
Net income (loss) |
($2,514) |
($0.05) |
($4,221) |
($0.08) |
$7,968 |
$0.15 |
$17,884 |
$0.33 |
$19,117 |
$0.35 |
||
Add: |
||||||||||||
Amortization of swap termination costs |
3,644 |
0.07 |
3,437 |
0.06 |
2,973 |
0.05 |
2,628 |
0.05 |
12,682 |
0.23 |
||
Loss on extinguishment of debt |
- |
- |
5,098 |
0.09 |
- |
- |
- |
- |
5,098 |
0.09 |
||
Acquisition (income) expense |
- |
- |
159 |
0.00 |
(1,043) |
(0.02) |
91 |
0.00 |
(793) |
(0.01) |
||
Adjusted net income (loss) |
$1,130 |
$0.02 |
$4,473 |
$0.08 |
$9,898 |
$0.18 |
$20,603 |
$0.38 |
$36,104 |
$0.66 |
||
Weighted Average common shares outstanding (diluted) |
54,568 |
54,869 |
54,872 |
54,864 |
54,793 |
|||||||
Note: Numbers may not add due to rounding
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES
Operating Income Excluding 45G Benefit, Operating Ratio Excluding 45G Benefit, Operating Income Excluding 45G Benefit, Asset Sales & Impairments and Operating Ratio Excluding 45G Benefit, Asset Sales & Impairments are supplemental measures of profitability that are not calculated or presented in accordance with U.S. generally accepted accounting principles ("GAAP"). We use non-GAAP financial measures as a supplement to our GAAP results in order to provide a more complete understanding of the factors and trends affecting our business. However, Operating Income Excluding 45G Benefit, Operating Ratio Excluding 45G Benefit, Operating Income Excluding 45G Benefit, Asset Sales & Impairments and Operating Ratio Excluding 45G Benefit, Asset Sales & Impairments have limitations as analytical tools. They are not measurements of our profitability under GAAP and should not be considered as alternatives to Operating Income or Operating Ratio as measures of profitability.
Operating Income Excluding 45G Benefit and Operating Ratio Excluding 45G Benefit assist us in measuring our performance and profitability of our operations without the impact of monetizing the 45G tax benefit. Operating Income Excluding 45G Benefit, Asset Sales & Impairments and Operating Ratio Excluding 45G Benefit, Asset Sales & Impairments assist us in measuring our performance and profitability of our operations without the impact of monetizing the 45G tax benefit, Asset Sales and Impairments. The following table sets forth the reconciliation of Operating Income Excluding 45G Benefit from our Operating Income, Operating Ratio Excluding 45G Benefit from our Operating Ratio, Operating Income Excluding 45G Benefit, Asset Sales & Impairments from our Operating Income and Operating Ratio Excluding 45G Benefit, Asset Sales & Impairments from our Operating Ratio.
2011 |
||||||||||||
($ in thousands) |
Q1 |
Q2 |
Q3 |
Q4 |
FY |
|||||||
Operating revenue |
$124,937 |
$139,215 |
$139,665 |
$147,306 |
$551,123 |
|||||||
Operating expense |
100,734 |
110,517 |
108,177 |
110,073 |
429,501 |
|||||||
Operating Income, reported |
24,203 |
28,698 |
31,488 |
37,233 |
121,622 |
|||||||
Operating ratio Reported |
80.6% |
79.4% |
77.5% |
74.7% |
77.9% |
|||||||
Less: Benefit from 45G credits |
(4,150) |
3.3% |
(5,133) |
3.7% |
(3,879) |
2.8% |
(3,552) |
2.4% |
(16,714) |
3.0% |
||
Operating income excluding 45G Benefit |
20,053 |
23,565 |
27,609 |
33,681 |
104,908 |
|||||||
Operating ratio excluding 45G Benefit |
83.9% |
83.1% |
80.3% |
77.1% |
81.0% |
|||||||
Net (gain) loss on sale of assets |
207 |
-0.2% |
(64) |
0.0% |
8 |
0.0% |
(201) |
0.1% |
(50) |
0.0% |
||
Impairment of assets |
- |
0.0% |
3,220 |
-2.3% |
1,949 |
-1.4% |
- |
0.0% |
5,169 |
-0.9% |
||
Operating income excluding 45G Benefit, Asset Sales & Impairments |
$20,260 |
$26,721 |
$29,566 |
$33,480 |
$110,027 |
|||||||
Operating ratio, excluding 45G Benefit, Asset Sales & Impairments |
83.8% |
80.8% |
78.9% |
77.3% |
80.0% |
|||||||
2010 |
||||||||||||
($ in thousands) |
Q1 |
Q2 |
Q3 |
Q4 |
FY |
|||||||
Operating revenue |
$114,941 |
$119,457 |
$128,257 |
$127,636 |
$490,291 |
|||||||
Operating expense |
95,740 |
96,397 |
99,766 |
83,881 |
375,784 |
|||||||
Operating Income, reported |
19,201 |
23,060 |
28,491 |
43,755 |
114,507 |
|||||||
Operating ratio Reported |
83.3% |
80.7% |
77.8% |
65.7% |
76.6% |
|||||||
Less: Benefit from 45G credits |
- |
0.0% |
- |
0.0% |
- |
0.0% |
(17,589) |
13.8% |
(17,589) |
3.6% |
||
Operating income excluding 45G Benefit |
19,201 |
23,060 |
28,491 |
26,166 |
96,918 |
|||||||
Operating ratio excluding 45G Benefit |
83.3% |
80.7% |
77.8% |
79.5% |
80.2% |
|||||||
Net (gain) loss on sale of assets |
(34) |
0.0% |
25 |
0.0% |
(1,708) |
1.3% |
(474) |
0.4% |
(2,191) |
0.4% |
||
Addback IPO charge |
- |
0.0% |
- |
0.0% |
- |
0.0% |
- |
0.0% |
- |
0.0% |
||
Operating income excluding 45G Benefit, Asset Sales & Impairments |
$19,167 |
$23,085 |
$26,783 |
$25,692 |
$94,727 |
|||||||
Operating ratio, excluding 45G Benefit, Asset Sales & Impairments |
83.3% |
80.7% |
79.1% |
79.9% |
80.7% |
|||||||
Note: Numbers may not add due to rounding
SOURCE RailAmerica, Inc.
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