Attached files
| file | filename |
|---|---|
| 8-K - GENESEE & WYOMING INC. 8-K - GENESEE & WYOMING INC | a50257069.htm |
Exhibit 99.1
Genesee & Wyoming Reports Results for the First Quarter of 2012
GREENWICH, Conn.--(BUSINESS WIRE)--May 1, 2012--Genesee & Wyoming Inc. (GWI) (NYSE: GWR) reported net income in the first quarter of 2012 of $22.2 million, compared with net income of $22.1 million in the first quarter of 2011. GWI's diluted earnings per share (EPS) in the first quarter of 2012 were $0.52 with 43.1 million weighted average shares outstanding, compared with diluted EPS of $0.52 with 42.5 million weighted average shares outstanding in the first quarter of 2011.
GWI’s effective tax rate was 35.6% in the first quarter of 2012, as compared to 27.7% in the first quarter of 2011. The higher tax rate in the first quarter of the current year was driven primarily by the expiration of the Short Line Tax Credit on December 31, 2011.
Comments from Jack Hellmann, our Chief Executive Officer
Jack Hellmann, President and CEO commented, “Our financial results for the first quarter of 2012 were consistent with our expectations. While revenues increased 8% to $207 million, our net income was unchanged for three main reasons: the expiration of the U.S. short line tax credit; weak coal shipments in the United States; and a 60-day outage on a portion of our main line in Australia due to the washout of our Edith River Bridge. For our North American & European Operations, despite a 20% drop in coal revenues, our first quarter revenues still increased 9% and our operating income increased 16%.”
“As we look ahead to the remainder of 2012, we expect improving business trends. In North America, our non-coal traffic continues to grow and our newly acquired Arizona Eastern Railway and Hilton & Albany Railroad are performing well. Although our U.S. coal traffic is weak, primarily due to warm winter weather and low natural gas prices, we expect some improvement in the second quarter as shipments resume at two power plants. The fact that our North American & European Operations operating ratio improved 1.3 percentage points to 78.3% in the first quarter of 2012 despite the decline in our coal traffic also means that we are well positioned to benefit from any future improvement in shipments.”
“In Australia, the Edith River Bridge has reopened and the entirety of our operations are running well, supported by the delivery of seven new high horsepower locomotives. In addition, we plan to begin serving a new iron ore mine in South Australia in the fourth quarter of this year.”
“Finally, we continue to evaluate multiple acquisition and investment opportunities in both North America and Australia and have significant financial capacity to execute on the right transactions.”
Results from Continuing Operations
In the first quarter of 2012, GWI's total operating revenues increased $15.5 million, or 8.1%, to $207.4 million, compared with $191.9 million in the first quarter of 2011. The increase included $6.7 million in revenues from new operations and an $8.8 million, or 4.6%, increase in same railroad operating revenues. Same railroad operating revenues were negatively impacted by an estimated $7 million from the Edith River Bridge closure and by approximately $5 million from lower coal and coal-related haulage traffic. During the first quarter of 2012, the net appreciation of foreign currencies increased same railroad operating revenues by $2.3 million. Excluding the net impact from foreign currency, GWI’s same railroad operating revenues increased $6.5 million, or 3.4%.
Same railroad freight revenues in the first quarter of 2012 increased by $5.4 million, or 4.1%, to $138.2 million, compared with $132.8 million in the first quarter of 2011. Excluding a $1.9 million increase from the net impact of foreign currency appreciation, GWI’s same railroad freight revenues increased by $3.6 million, or 2.7%.
GWI's traffic in the first quarter of 2012 was 222,178 carloads, a decrease of 22,378 carloads, or 9.2%, compared with the first quarter of 2011. Traffic in the first quarter of 2012 included 4,785 carloads from new operations. Same railroad traffic decreased 27,163 carloads, or 11.1%, in the first quarter of 2012. The same railroad traffic decrease was principally due to decreases of 22,205 carloads of coal traffic and 8,638 carloads of other commodity traffic, primarily related to coal haulage, partially offset by an increase of 3,188 carloads of metals traffic. All remaining traffic increased by a net 492 carloads.
Average same railroad freight revenues per carload increased 17.1% in the first quarter of 2012. The net appreciation of the Australian and Canadian dollars versus the U.S. dollar, higher fuel surcharges and changes in commodity mix increased average revenues per carload by 1.7%, 1.7% and 3.8%, respectively. Other than these factors, same railroad average freight revenues per carload increased 9.9%. Average freight revenues per carload were impacted by changes in the mix of customers within certain commodity groups, primarily coal, metals and other commodities.
GWI’s same railroad non-freight revenues in the first quarter of 2012 increased by $3.4 million, or 5.7%, to $62.5 million compared with $59.1 million in the first quarter of 2011. Excluding a $0.5 million increase from the net impact from foreign currency appreciation, GWI’s same railroad non-freight revenues increased by $2.9 million, or 5.0%, primarily due to higher railcar switching revenues in Europe, Australia and Canada.
GWI's operating income in the first quarter of 2012 was $41.3 million, an increase of $2.1 million, compared with $39.2 million in the first quarter of 2011. The estimated impact of the Edith River Bridge outage in the Northern Territory of Australia was a net reduction in operating income of $5 million in the first quarter of 2012. The decline in coal and coal haulage traffic reduced operating income in the first quarter of 2012 by approximately $3 million.
Free Cash Flow from Continuing Operations (1)
| (in millions) |
Three Months Ended
March 31, |
||||||||||
| 2012 | 2011 | ||||||||||
| Net cash provided by operating activities | $ | 27.7 | $ | 7.3 | |||||||
|
Net cash used in investing activities, excluding new Australian equipment investments |
(16.5 |
) |
(7.6 |
) |
|||||||
|
|
|
|
|||||||||
| Net cash paid for acquisitions | 0.8 | 0.4 | |||||||||
| Cash paid for acquisition-related expenses (a) | - | 13.0 | |||||||||
|
Free cash flow before new Australian equipment investments |
12.0 |
13.1 |
|||||||||
|
|
|
|
|||||||||
| New Australian equipment investments | (24.5 | ) | - | ||||||||
| Free cash flow (1) | $ | (12.5 | ) | $ | 13.1 | ||||||
|
(a) |
The 2011 period included the payment of Australian stamp duty related to the acquisition of FreightLink in Australia, which was accrued as of December 31, 2010, but paid in 2011. |
|||
GWI’s free cash outflow from continuing operations for the three months ended March 31, 2012 was $12.5 million. GWI’s continuing operations generated free cash flow of $13.1 million for the three months ended March 31, 2011. The net use of cash due to the repairs and other incremental costs associated with the Edith River derailment in Australia was approximately $3.0 million in the three months ended March 31, 2012.
Conference Call and Webcast Details
As previously announced, GWI's conference call to discuss financial results for the first quarter will be held Tuesday, May 1, 2012, at 11 a.m. EDT. The dial-in number for the teleconference is (800) 230-1059; outside U.S., call (612) 234-9960, or the call may be accessed live over the Internet (listen only) under the "Investors" tab of GWI's website (http://www.gwrr.com), by selecting "First Quarter Earnings Conference Call Webcast." Management will be referring to a slide presentation that will also be available under the “Investors” tab of GWI’s website prior to the conference call. An audio replay of the conference call will be accessible via the “Investors” tab of GWI's website starting at 1 p.m. EDT on May 1, 2012, until the following quarter’s earnings press release. Telephone replay is available for 30 days beginning at 1 p.m. EDT on May 1 by dialing (800) 475-6701 (or outside U.S., dial 320-365-3844). The access code is 222298.
About Genesee & Wyoming Inc.
GWI owns and operates short line and regional freight railroads and provides railcar switching services in the United States, Australia, Canada, the Netherlands and Belgium. In addition, we operate the Tarcoola to Darwin rail line, which links the Port of Darwin with the Australian interstate rail network in South Australia. Operations currently include 65 railroads organized in 10 regions, with more than 7,600 miles of owned and leased track and approximately 1,400 additional miles under track access arrangements. We provide rail service at 17 ports in North America and Europe and perform contract coal loading and railcar switching for industrial customers.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains forward-looking statements regarding future events and the future performance of Genesee & Wyoming Inc. that are based on current expectations, estimates and projections about our industry, management's beliefs, and assumptions made by management. Words such as "anticipates," "intends," "plans," "believes," “will,” "seeks," "expects," "estimates," variations of these words and similar expressions are intended to identify these forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions, including the following risks applicable to all of our operations: risks related to the acquisition and integration of railroads; economic, political and industry conditions; customer demand, retention and contract continuation; legislative and regulatory developments, including changes in environmental and other laws and regulations to which we are subject; increased competition in relevant markets; funding needs and financing sources; unpredictability of fuel costs; susceptibility to various legal claims and lawsuits; strikes or work stoppages; severe weather conditions and other natural occurrences; susceptibility to the risks of doing business in foreign countries; and others including but not limited to, those noted in our 2011 Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q under “Risk Factors.” Therefore, actual results may differ materially from those expressed or forecasted in any such forward-looking statements. Forward-looking statements speak only as of the date of this press release or as of the date they were made. GWI disclaims any intention to update the current expectations or forward-looking statements contained in this press release.
(1) Free cash flow is a non-GAAP financial measure and is not intended to replace net cash provided by operating activities, its most directly comparable GAAP measure. The information required by Item 10(e) of Regulation S-K under the Securities Act of 1933 and the Securities Exchange Act of 1934 and Regulation G under the Securities Exchange Act of 1934, including a reconciliation to net cash provided by operating activities, is included in the tables attached to this press release.
| GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
| FOR THE THREE MONTHS ENDED MARCH 31, 2012 AND 2011 | ||||||||||
| (in thousands, except per share amounts) | ||||||||||
| (unaudited) | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2012 | 2011 | |||||||||
| OPERATING REVENUES | $ | 207,436 | $ | 191,911 | ||||||
| OPERATING EXPENSES | 166,122 | 152,708 | ||||||||
| INCOME FROM OPERATIONS | 41,314 | 39,203 | ||||||||
| INTEREST INCOME | 867 | 775 | ||||||||
| INTEREST EXPENSE | (8,616 | ) | (9,939 | ) | ||||||
| OTHER INCOME, NET | 984 | 568 | ||||||||
| INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 34,549 | 30,607 | ||||||||
| PROVISION FOR INCOME TAXES | 12,305 | 8,485 | ||||||||
| INCOME FROM CONTINUING OPERATIONS | 22,244 | 22,122 | ||||||||
| LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX | (3 | ) | - | |||||||
| NET INCOME | $ | 22,241 | $ | 22,122 | ||||||
| BASIC EARNINGS PER SHARE: | ||||||||||
| BASIC EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS | $ | 0.55 | $ | 0.56 | ||||||
| BASIC LOSS PER COMMON SHARE FROM DISCONTINUED OPERATIONS | - | - | ||||||||
| BASIC EARNINGS PER COMMON SHARE | $ | 0.55 | $ | 0.56 | ||||||
| WEIGHTED AVERAGE SHARES - BASIC | 40,360 | 39,484 | ||||||||
| DILUTED EARNINGS PER SHARE: | ||||||||||
| DILUTED EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS | $ | 0.52 | $ | 0.52 | ||||||
| DILUTED LOSS PER COMMON SHARE FROM DISCONTINUED OPERATIONS | - | - | ||||||||
| DILUTED EARNINGS PER COMMON SHARE | $ | 0.52 | $ | 0.52 | ||||||
| WEIGHTED AVERAGE SHARES - DILUTED | 43,081 | 42,545 | ||||||||
| GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| AS OF MARCH 31, 2012 AND DECEMBER 31, 2011 | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
| March 31, | December 31, | |||||||
| ASSETS | 2012 | 2011 | ||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 28,738 | $ | 27,269 | ||||
| Accounts receivable, net | 163,151 | 165,768 | ||||||
| Materials and supplies | 16,011 | 14,445 | ||||||
| Prepaid expenses and other | 15,844 | 13,332 | ||||||
| Deferred income tax assets, net | 19,231 | 19,385 | ||||||
| Total current assets | 242,975 | 240,199 | ||||||
| PROPERTY AND EQUIPMENT, net | 1,680,034 | 1,643,589 | ||||||
| GOODWILL | 160,964 | 160,277 | ||||||
| INTANGIBLE ASSETS, net | 229,029 | 230,628 | ||||||
| DEFERRED INCOME TAX ASSETS, net | 2,389 | 2,342 | ||||||
| OTHER ASSETS, net | 17,984 | 17,122 | ||||||
| Total assets | $ | 2,333,375 | $ | 2,294,157 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Current portion of long-term debt | $ | 59,340 | $ | 57,168 | ||||
| Accounts payable | 121,549 | 134,081 | ||||||
| Accrued expenses | 58,446 | 69,097 | ||||||
| Deferred income tax liabilities, net | 104 | 925 | ||||||
|
Total current liabilities |
239,439 | 261,271 | ||||||
| LONG-TERM DEBT, less current portion | 577,692 | 569,026 | ||||||
| DEFERRED INCOME TAX LIABILITIES, net | 295,922 | 285,780 | ||||||
| DEFERRED ITEMS - grants from outside parties | 203,001 | 198,824 | ||||||
| OTHER LONG-TERM LIABILITIES | 19,676 | 18,622 | ||||||
| TOTAL STOCKHOLDERS' EQUITY | 997,645 | 960,634 | ||||||
| Total liabilities and stockholders' equity | $ | 2,333,375 | $ | 2,294,157 | ||||
| GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
| FOR THE THREE MONTHS ENDED MARCH 31, 2012 AND 2011 | ||||||||||
| (in thousands) | ||||||||||
| (unaudited) | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2012 | 2011 | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
| Net income | $ | 22,241 | $ | 22,122 | ||||||
| Adjustments to reconcile net income to net cash provided | ||||||||||
| by operating activities: | ||||||||||
| Loss from discontinued operations, net of tax | 3 | - | ||||||||
| Depreciation and amortization | 17,633 | 15,861 | ||||||||
| Compensation cost related to equity awards | 2,290 | 2,148 | ||||||||
| Excess tax benefits from share-based compensation | (1,746 | ) | (900 | ) | ||||||
| Deferred income taxes | 9,977 | 3,311 | ||||||||
| Net gain on sale of assets | (1,230 | ) | (1,010 | ) | ||||||
| Insurance proceeds received | 12,521 | - | ||||||||
| Changes in assets and liabilities, net of effect of acquisitions: | ||||||||||
| Accounts receivable, net | (2,526 | ) | (13,837 | ) | ||||||
| Materials and supplies | (1,418 | ) | (656 | ) | ||||||
| Prepaid expenses and other | (2,496 | ) | (1,535 | ) | ||||||
| Accounts payable and accrued expenses | (27,491 | ) | (20,039 | ) | ||||||
| Other assets and liabilities, net | (9 | ) | 1,819 | |||||||
| Net cash provided by operating activities from continuing operations | 27,749 | 7,284 | ||||||||
| Net cash used in discontinued operations | (3 | ) | (4 | ) | ||||||
| Net cash provided by operating activities | 27,746 | 7,280 | ||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
| Purchase of property and equipment, gross | (50,318 | ) | (15,725 | ) | ||||||
| Proceeds from outside parties | 8,437 | 7,514 | ||||||||
| Cash paid for acquisitions, net of cash acquired | (837 | ) | (440 | ) | ||||||
| Proceeds from disposition of property and equipment | 1,626 | 1,031 | ||||||||
| Net cash used in investing activities from continuing operations | (41,092 | ) | (7,620 | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
| Principal payments on long-term borrowings, including capital leases | (56,461 | ) | (55,981 | ) | ||||||
| Proceeds from issuance of long-term debt | 64,716 | 52,967 | ||||||||
| Proceeds from employee stock purchases | 6,210 | 4,006 | ||||||||
| Treasury stock purchases | (1,757 | ) | (1,029 | ) | ||||||
| Excess tax benefits from share-based compensation | 1,746 | 900 | ||||||||
| Net cash provided by financing activities from continuing operations | 14,454 | 863 | ||||||||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 361 | (897 | ) | |||||||
| CHANGE IN CASH BALANCES INCLUDED IN CURRENT ASSETS OF DISCONTINUED OPERATIONS | - | 1 | ||||||||
| INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 1,469 | (373 | ) | |||||||
| CASH AND CASH EQUIVALENTS, beginning of period | 27,269 | 27,417 | ||||||||
| CASH AND CASH EQUIVALENTS, end of period | $ | 28,738 | $ | 27,044 | ||||||
| GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||||||||||
| SELECTED CONSOLIDATED FINANCIAL INFORMATION | ||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||
| (unaudited) | ||||||||||||||||||
| Three Months Ended | ||||||||||||||||||
| March 31, | ||||||||||||||||||
| 2012 | 2011 | |||||||||||||||||
| % of | % of | |||||||||||||||||
| Amount | Revenue | Amount | Revenue | |||||||||||||||
|
Revenues: |
||||||||||||||||||
| Freight | $ | 144,584 | 69.7 | % | $ | 132,805 | 69.2 | % | ||||||||||
| Non-freight | 62,852 | 30.3 | % | 59,106 | 30.8 | % | ||||||||||||
| Total revenues | $ | 207,436 | 100.0 | % | $ | 191,911 | 100.0 | % | ||||||||||
|
Operating Expense Comparison: |
||||||||||||||||||
|
Natural Classification |
||||||||||||||||||
| Labor and benefits | $ | 65,757 | 31.7 | % | $ | 58,082 | 30.3 | % | ||||||||||
| Equipment rents | 9,817 | 4.8 | % | 10,544 | 5.4 | % | ||||||||||||
| Purchased services | 18,031 | 8.7 | % | 17,442 | 9.1 | % | ||||||||||||
| Depreciation and amortization | 17,633 | 8.5 | % | 15,861 | 8.3 | % | ||||||||||||
| Diesel fuel used in operations | 21,998 | 10.6 | % | 21,421 | 11.2 | % | ||||||||||||
| Diesel fuel sold to third parties | 4,990 | 2.4 | % | 4,079 | 2.1 | % | ||||||||||||
| Casualties and insurance | 5,547 | 2.7 | % | 5,438 | 2.8 | % | ||||||||||||
| Materials | 6,107 | 2.9 | % | 6,583 | 3.4 | % | ||||||||||||
| Net gain on sale of assets | (1,230 | ) | (0.6 | %) | ( 1,010 | ) | (0.5 | %) | ||||||||||
| Other expenses | 17,472 | 8.4 | % | 14,268 | 7.5 | % | ||||||||||||
| Total operating expenses | $ | 166,122 | 80.1 | % | $ | 152,708 | 79.6 | % | ||||||||||
|
Functional Classification |
||||||||||||||||||
| Transportation | $ | 68,164 | 32.9 | % | $ | 61,971 | 32.3 | % | ||||||||||
| Maintenance of ways and structures | 21,293 | 10.3 | % | 17,863 | 9.3 | % | ||||||||||||
| Maintenance of equipment | 22,701 | 10.9 | % | 23,507 | 12.2 | % | ||||||||||||
| Diesel fuel sold to third parties | 4,990 | 2.4 | % | 4,079 | 2.1 | % | ||||||||||||
| General and administrative | 32,571 | 15.7 | % | 30,437 | 15.8 | % | ||||||||||||
| Net gain on sale of assets | (1,230 | ) | (0.6 | %) | ( 1,010 | ) | (0.5 | %) | ||||||||||
| Depreciation and amortization | 17,633 | 8.5 | % | 15,861 | 8.3 | % | ||||||||||||
| Total operating expenses | $ | 166,122 | 80.1 | % | $ | 152,708 | 79.6 | % | ||||||||||
| GENESEE & WYOMING INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||
| SELECTED CONSOLIDATED FINANCIAL INFORMATION | |||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||
|
|
North American & European |
|
|||||||||||||||||||||||||
|
Three Months Ended March 31, 2012 |
Operations |
Australian Operations |
Total Operations | ||||||||||||||||||||||||
|
|
% of Total | % of Total |
% of Total |
||||||||||||||||||||||||
|
Revenues: |
Amount | Revenues | Amount | Revenues | Amount |
Revenues |
|||||||||||||||||||||
| Freight | $ | 102,048 | 70.8 | % | $ | 42,536 | 67.1 | % | $ | 144,584 | 69.7 | % | |||||||||||||||
| Non-freight (excluding fuel sales) | 42,025 | 29.2 | % | 15,541 | 24.5 | % | 57,566 | 27.8 | % | ||||||||||||||||||
| Fuel sales to third parties | - | 0.0 | % | 5,286 | 8.3 | % | 5,286 | 2.5 | % | ||||||||||||||||||
|
Total revenues |
144,073 | 100.0 | % | 63,363 | 100.0 | % | 207,436 | 100.0 | % | ||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||
| Labor and benefits | 51,090 | 35.5 | % |
14,667 |
23.0 | % | 65,757 | 31.7 | % | ||||||||||||||||||
| Equipment rents | 6,726 | 4.7 | % | 3,091 | 4.9 | % | 9,817 | 4.7 | % | ||||||||||||||||||
| Purchased services | 6,259 | 4.3 | % | 11,772 | 18.6 | % | 18,031 | 8.7 | % | ||||||||||||||||||
| Depreciation and amortization | 12,318 | 8.5 | % | 5,315 | 8.4 | % | 17,633 | 8.5 | % | ||||||||||||||||||
| Diesel fuel used in operations | 15,209 | 10.6 | % | 6,789 | 10.7 | % | 21,998 | 10.6 | % | ||||||||||||||||||
| Diesel fuel sold to third parties | - | 0.0 | % | 4,990 | 7.9 | % | 4,990 | 2.4 | % | ||||||||||||||||||
| Casualties and insurance | 3,412 | 2.4 | % | 2,135 | 3.4 | % | 5,547 | 2.7 | % | ||||||||||||||||||
| Materials | 5,884 | 4.1 | % | 223 | 0.4 | % | 6,107 | 2.9 | % | ||||||||||||||||||
| Net gain on sale of assets | (1,111 | ) | (0.8 | %) | (119 | ) | (0.2 | %) | (1,230 | ) | (0.6 | %) | |||||||||||||||
| Other expenses | 12,973 | 9.0 | % | 4,499 | 7.1 | % | 17,472 | 8.4 | % | ||||||||||||||||||
| Total operating expenses | 112,760 | 78.3 | % | 53,362 | 84.2 | % | 166,122 | 80.1 | % | ||||||||||||||||||
| Income from Operations | $ | 31,313 | $ | 10,001 | $ | 41,314 | |||||||||||||||||||||
| Carloads | 174,256 | 47,922 | 222,178 | ||||||||||||||||||||||||
| Net expenditures for additions to property & equipment | $ | 12,804 | $ | 31,322 | $ | 44,126 | |||||||||||||||||||||
|
|
North American & European | ||||||||||||||||||||||||||
|
Three Months Ended March 31, 2011 |
Operations | Australian Operations | Total Operations | ||||||||||||||||||||||||
|
|
% of Total | % of Total |
% of Total |
||||||||||||||||||||||||
|
Revenues: |
Amount | Revenues | Amount | Revenues | Amount |
Revenues |
|||||||||||||||||||||
| Freight | $ | 90,729 | 68.6 | % | $ | 42,076 | 70.6 | % | $ | 132,805 | 69.2 | % | |||||||||||||||
| Non-freight (excluding fuel sales) | 41,578 | 31.4 | % | 13,109 | 22.0 | % | 54,687 | 28.5 | % | ||||||||||||||||||
| Fuel sales to third parties | - | 0.0 | % | 4,419 | 7.4 | % | 4,419 | 2.3 | % | ||||||||||||||||||
| Total revenues | 132,307 | 100.0 | % | 59,604 | 100.0 | % | 191,911 | 100.0 | % | ||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||
| Labor and benefits | 46,459 | 35.2 | % | 11,623 | 19.5 | % | 58,082 | 30.4 | % | ||||||||||||||||||
| Equipment rents | 6,493 | 4.9 | % | 4,051 | 6.8 | % | 10,544 | 5.5 | % | ||||||||||||||||||
| Purchased services | 6,365 | 4.8 | % | 11,077 | 18.6 | % | 17,442 | 9.1 | % | ||||||||||||||||||
| Depreciation and amortization | 11,346 | 8.6 | % | 4,515 | 7.6 | % | 15,861 | 8.3 | % | ||||||||||||||||||
| Diesel fuel used in operations | 14,977 | 11.3 | % | 6,444 | 10.8 | % | 21,421 | 11.2 | % | ||||||||||||||||||
| Diesel fuel sold to third parties | - | 0.0 | % | 4,079 | 6.8 | % | 4,079 | 2.1 | % | ||||||||||||||||||
| Casualties and insurance | 3,323 | 2.5 | % | 2,115 | 3.5 | % | 5,438 | 2.8 | % | ||||||||||||||||||
| Materials | 6,262 | 4.7 | % | 321 | 0.5 | % | 6,583 | 3.4 | % | ||||||||||||||||||
| Net gain on sale of assets | (1,008 | ) | (0.8 | %) | (2 | ) | (0.0 | %) | (1,010 | ) | (0.5 | %) | |||||||||||||||
| Other expenses | 11,155 | 8.4 | % | 3,113 | 5.2 | % | 14,268 | 7.4 | % | ||||||||||||||||||
| Total operating expenses | 105,372 | 79.6 | % | 47,336 | 79.4 | % | 152,708 | 79.6 | % | ||||||||||||||||||
| Income from Operations | $ | 26,935 | $ | 12,268 | $ | 39,203 | |||||||||||||||||||||
| Carloads | 194,230 | 50,326 | 244,556 | ||||||||||||||||||||||||
| Net expenditures for additions to property & equipment | $ | 7,069 | $ | 1,142 | $ | 8,211 | |||||||||||||||||||||
| GENESEE & WYOMING INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
| RAILROAD FREIGHT REVENUES, CARLOADS AND AVERAGE REVENUES PER CARLOAD | |||||||||||||||||||||||||||||||||
| COMPARISON BY COMMODITY GROUP | |||||||||||||||||||||||||||||||||
| (dollars in thousands, except average revenues per carload) | |||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 2012 | |||||||||||||||||||||||||||||||||
| North American & European Operations | Australian Operations | Total Operations | |||||||||||||||||||||||||||||||
| Freight | Average Revenues | Freight | Average Revenues | Freight | Average Revenues | ||||||||||||||||||||||||||||
| Commodity Group | Revenues | Carloads | Per Carload | Revenues | Carloads | Per Carload | Revenues | Carloads | Per Carload | ||||||||||||||||||||||||
| Intermodal* | $ | 92 | 720 | $ | 128 | $ | 18,610 | 12,736 | $ | 1,461 | $ | 18,702 | 13,456 | $ | 1,390 | ||||||||||||||||||
| Coal & Coke | 15,062 | 31,999 | 471 | - | - | - | 15,062 | 31,999 | 471 | ||||||||||||||||||||||||
| Farm & Food Products | 8,270 | 16,059 | 515 | 11,122 | 16,668 | 667 | 19,392 | 32,727 | 593 | ||||||||||||||||||||||||
| Pulp & Paper | 15,959 | 24,776 | 644 | - | - | - | 15,959 | 24,776 | 644 | ||||||||||||||||||||||||
| Metallic Ores** | 2,225 | 2,529 | 880 | 9,590 | 4,558 | 2,104 | 11,815 | 7,087 | 1,667 | ||||||||||||||||||||||||
| Metals | 16,756 | 26,671 | 628 | - | - | - | 16,756 | 26,671 | 628 | ||||||||||||||||||||||||
| Minerals & Stone | 8,257 | 16,280 | 507 | 2,472 | 13,836 | 179 | 10,729 | 30,116 | 356 | ||||||||||||||||||||||||
| Chemicals & Plastics | 14,240 | 17,046 | 835 | - | - | - | 14,240 | 17,046 | 835 | ||||||||||||||||||||||||
| Lumber & Forest Products | 7,827 | 15,838 | 494 | - | - | - | 7,827 | 15,838 | 494 | ||||||||||||||||||||||||
| Petroleum Products | 6,836 | 7,907 | 865 | 742 | 124 | 5,984 | 7,578 | 8,031 | 944 | ||||||||||||||||||||||||
| Autos & Auto Parts | 2,060 | 2,406 | 856 | - | - | - | 2,060 | 2,406 | 856 | ||||||||||||||||||||||||
| Other | 4,464 | 12,025 | 371 | - | - | - | 4,464 | 12,025 | 371 | ||||||||||||||||||||||||
| Totals | $ | 102,048 | 174,256 | $ | 586 | $ | 42,536 | 47,922 | $ | 888 | $ | 144,584 | 222,178 | $ | 651 | ||||||||||||||||||
| * Represents intermodal units | |||||||||||||||||||||||||||||||||
| ** Includes carloads and intermodal units | |||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 2011 | |||||||||||||||||||||||||||||||||
| North American & European Operations | Australian Operations | Total Operations | |||||||||||||||||||||||||||||||
| Freight | Average Revenues | Freight | Average Revenues | Freight | Average Revenues | ||||||||||||||||||||||||||||
| Commodity Group | Revenues | Carloads | Per Carload | Revenues | Carloads | Per Carload | Revenues | Carloads | Per Carload | ||||||||||||||||||||||||
| Intermodal* | $ | 98 | 846 | $ | 116 | $ | 17,833 | 12,872 | 1,385 | $ | 17,931 | 13,718 | $ | 1,307 | |||||||||||||||||||
| Coal & Coke | 18,871 | 54,204 | 348 | - | - | - | 18,871 | 54,204 | 348 | ||||||||||||||||||||||||
| Farm & Food Products | 6,850 | 14,280 | 480 | 9,804 | 16,602 | 591 | 16,654 | 30,882 | 539 | ||||||||||||||||||||||||
| Pulp & Paper | 14,779 | 24,309 | 608 | - | - | - | 14,779 | 24,309 | 608 | ||||||||||||||||||||||||
| Metallic Ores | 1,525 | 2,778 | 549 | 10,665 | 4,191 | 2,545 | 12,190 | 6,969 | 1,749 | ||||||||||||||||||||||||
| Metals | 11,337 | 22,540 | 503 | - | - | - | 11,337 | 22,540 | 503 | ||||||||||||||||||||||||
| Minerals & Stone | 6,294 | 14,149 | 445 | 3,372 | 16,578 | 203 | 9,666 | 30,727 | 315 | ||||||||||||||||||||||||
| Chemicals & Plastics | 10,464 | 14,349 | 729 | - | - | - | 10,464 | 14,349 | 729 | ||||||||||||||||||||||||
| Lumber & Forest Products | 7,389 | 15,575 | 474 | - | - | - | 7,389 | 15,575 | 474 | ||||||||||||||||||||||||
| Petroleum Products | 6,048 | 7,705 | 785 | 402 | 83 | 4,843 | 6,450 | 7,788 | 828 | ||||||||||||||||||||||||
| Autos & Auto Parts | 2,146 | 2,890 | 743 | - | - | - | 2,146 | 2,890 | 743 | ||||||||||||||||||||||||
| Other | 4,928 | 20,605 | 239 | - | - | - | 4,928 | 20,605 | 239 | ||||||||||||||||||||||||
| Totals | $ | 90,729 | 194,230 | $ | 467 | $ | 42,076 | 50,326 | $ | 836 | $ | 132,805 | 244,556 | $ | 543 | ||||||||||||||||||
| * Represents intermodal units | |||||||||||||||||||||||||||||||||
Reconciliation of non-GAAP Financial Measures
This earnings release contains references to free cash flow, which is a "non-GAAP financial measure" as this term is defined in Regulation G of the Securities Exchange Act of 1934. In accordance with Regulation G, GWI has reconciled this non-GAAP financial measure to its most directly comparable U.S. GAAP measure.
Free Cash Flow Description and Discussion
Management views Free Cash Flow as an important financial measure of how well GWI is managing its assets. Subject to the limitations discussed below, Free Cash Flow is a useful indicator of cash flow that may be available for discretionary use by GWI. Free Cash Flow is defined as Net Cash Provided by Operating Activities from Continuing Operations less Net Cash Used in Investing Activities from Continuing Operations, excluding the cost of acquisitions and the cash paid for acquisition-related expenses. Key limitations of the Free Cash Flow measure include the assumptions that GWI will be able to refinance its existing debt when it matures and meet other cash flow obligations from financing activities, such as principal payments on debt. Free Cash Flow is not intended to represent, and should not be considered more meaningful than, or as an alternative to, measures of cash flow determined in accordance with GAAP. Free Cash Flow may be different from similarly-titled non-GAAP financial measures used by other companies.
The following table sets forth a reconciliation of GWI's Net Cash Provided by Operating Activities from Continuing Operations to GWI's Free Cash Flow ($ in millions):
|
Three Months Ended
March 31, |
||||||||||
| 2012 | 2011 | |||||||||
| Net cash provided by operating activities from continuing operations | $ | 27.7 | $ | 7.3 | ||||||
| Net cash used in investing activities from continuing operations (a) | (41.1 | ) | (7.6 | ) | ||||||
| Net cash paid for acquisitions | 0.8 | 0.4 | ||||||||
| Cash paid for acquisition-related expenses (b) | - | 13.0 | ||||||||
| Free cash flow | $ | (12.5 | ) | $ | 13.1 | |||||
|
(a) |
The 2012 period includes $24.5 million in Australian equipment investments. |
|
|
(b) |
The 2011 period includes Australian stamp duty expenses accrued as of December 31, 2010, but paid in 2011. |
CONTACT:
GWI Corporate Communications
Michael Williams,
1-203-629-3722
mwilliams@gwrr.com