Genesee & Wyoming Reports Results for the Fourth Quarter of 2009
GREENWICH, Conn., Feb. 8, 2010 /PRNewswire-FirstCall/ -- Genesee & Wyoming Inc. (GWI) (NYSE: GWR) reported net income in the fourth quarter of 2009 of $18.3 million, compared with net income of $25.3 million in the fourth quarter of 2008. GWI's diluted earnings per share (EPS) in the fourth quarter of 2009 were $0.44 with 41.3 million weighted average shares outstanding, compared with diluted EPS of $0.70 with 36.4 million weighted average shares outstanding in the fourth quarter of 2008.
GWI's results for the fourth quarter of 2009 included gains on the sale of assets of $0.8 million ($0.5 million after-tax, or $0.01 per diluted share). Fourth quarter results also included a tax benefit of approximately $1.0 million, or $0.03 per diluted share, as a result of applying GWI's full year effective income tax rate to results for the first nine months of 2009. Results for the fourth quarter of 2008 included gains on the sale of assets of $3.9 million ($2.7 million after-tax, or $0.07 per diluted share), $2.0 million of acquisition-related expenses ($1.3 million after-tax, or $0.03 per diluted share) and certain net tax benefits of $9.3 million, or $0.26 per diluted share, primarily related to the extension of the short line tax credit.
The table below summarizes the financial impact of the significant items in the fourth quarter of 2009 and 2008 ($ millions, except per share amounts).
Pre-Tax After-Tax
Amount Amount (a) EPS Impact
-------- ---------- -----------
Q4 2009 -Gains on the
sale of assets $0.8 $0.5 $0.01
-Net tax benefits - $1.0 $0.03
-----------------------------------------------------------------
Q4 2008 -Gains on the
sale of assets $3.9 $2.7 $0.07
-Acquisition-related
expense ($2.0) ($1.3) ($0.03)
-Certain net tax
benefits (b) - $9.3 $0.26
(a) Other than tax credits and deferred tax valuation allowances, all
after-tax amounts presented are calculated using the marginal
effective income tax rate for the appropriate jurisdictions where
the transactions occurred.
(b) Includes a net tax benefit of $6.5 million related to the impact
of the retroactive extension of the U.S. short line tax credit
for the first nine months of 2008 and a net tax benefit of $4.8
million related to the impact of acquisitions on GWI's
consolidated U.S. tax position, partially offset by deferred tax
valuation allowances of $2.0 million in Australia and Canada.
Results from Continuing Operations
In the fourth quarter of 2009, GWI's total revenues decreased $9.2 million, or 6.2%, to $139.9 million, compared with $149.2 million in the fourth quarter of 2008. During the fourth quarter of 2009, the appreciation of the Australian and Canadian dollars and the Euro versus the U.S. dollar increased revenues by $7.6 million, partially offset by a $1.3 million decrease due to a decline in third-party fuel sales. Excluding currency and fuel sales, GWI's revenues declined $15.5 million, or 10.4%.
Freight revenues in the fourth quarter of 2009 decreased by $13.1 million, or 13.8%, to $82.1 million, compared with $95.2 million in the fourth quarter of 2008. Freight revenues were increased by $3.2 million due to the appreciation of the Australian and Canadian dollars. Excluding currency, GWI's freight revenues decreased by $16.3 million, or 17.2%.
Average freight revenues per carload increased 3.5% in the fourth quarter of 2009. During the fourth quarter of 2009, average revenues per carload were negatively impacted by lower fuel surcharges, which reduced average revenues per carload by 5.3%, and positively impacted by the appreciation of the Canadian and Australian dollars and changes in commodity mix that increased average revenue per carload by 3.5% and 0.6%, respectively. Excluding these factors, average revenues per carload increased 4.7%.
In the United States and Canada, excluding currency effects, changes in commodity mix and changes in fuel surcharges, average revenues per carload increased 4.4% in the fourth quarter of 2009 compared with the fourth quarter of 2008. Decreases in the rail cost adjustment factor (RCAF), a measure of railroad inflation published by the Association of American Railroads to which certain contract freight rates are indexed, had the impact of reducing U.S. and Canada average revenues per carload by approximately 1%.
GWI's non-freight revenues in the fourth quarter of 2009 increased $3.9 million, or 7.1%, to $57.8 million compared with $54.0 million in the fourth quarter of 2008. The increase in non-freight revenues included a $4.4 million increase due to the appreciation of the Australian and Canadian dollars and the Euro versus the U.S. dollar, partially offset by a $1.3 million decrease due to a decline in third-party fuel sales. Excluding currency and fuel sales, GWI's non-freight revenues increased $0.8 million, or 1.5%.
GWI's operating income in the fourth quarter of 2009 decreased $2.9 million, or 9.6%, to $27.5 million, compared with $30.4 million in the fourth quarter of 2008. The operating ratio was 80.4% in the fourth quarter of 2009, compared with an operating ratio of 79.6% in the fourth quarter of 2008. Operating income in the fourth quarter of 2009 included $0.8 million of net gains on the sale of assets, compared with $3.9 million of net gains on the sale of assets and $2.0 million of acquisition-related expenses in the fourth quarter of 2008. Excluding net gains on asset sales and acquisition-related expenses, GWI's operating ratio was 80.9% in the fourth quarter of 2009 and 2008. (1)
Comments from the Chief Executive Officer
John C. Hellmann, President and CEO of GWI, commented, "Our revenues in the fourth quarter decreased 6% compared to the fourth quarter of 2008, but were stable compared to the third quarter of 2009. Despite the revenue decline from last year, we continued to manage our costs well and maintained an operating ratio of 81%. We also experienced a few areas of unexpected revenue strength in the fourth quarter of 2009, including grain shipments on the Gulf Coast and steel pipe in the Southeastern United States."
Mr. Hellmann continued, "In 2009, we generated $75 million of free cash flow, which was the second best performance in Company history. In the context of the recession, we think this is an important accomplishment. With $106 million of cash on our balance sheet and an undrawn revolving credit facility, we continue to actively evaluate acquisition and investment opportunities in both North America and Australia."
Free Cash Flow from Continuing Operations (2)
($ in millions) Year Ended
December 31,
2009 2008
---- ----
$126.9 $128.7
Net cash provided by
operating activities
Net cash used in investing
activities (58.3) (413.8)
Net cash paid/(received)
for acquisitions/
divestitures (a) 6.4 345.5
Contingent consideration
held in escrow (b) - 7.5
--- ---
Free cash flow (2) $75.0 $67.9
===== =====
(a) The 2009 period includes: 1) $4.8 million in net cash paid for
final working capital adjustments related to the acquisition of
the Ohio Central Railroad System (OCR), 2) $1.0 million in net
cash paid in contingent consideration related to the Rotterdam
Rail Feeding B.V. (RRF) acquisition, 3) $4.4 million in cash paid
to purchase the remaining 12.6% interest in Maryland Midland
Railway, Inc. (Maryland Midland) and 4) $3.8 million in cash
received from the sale of Bolivia. The 2008 period includes 1)
$212.6 million in net cash paid for the acquisition of the OCR,
2) $16.7 million in net cash paid for the acquisition of Georgia
Southwestern Railroad, Inc. (Georgia Southwestern), 3) $89.9
million in net cash paid for the acquisition of CAGY Industries
Inc. (CAGY), 4) $22.6 million in net cash paid for the
acquisition of RRF and 5) $3.7 million for final working capital
adjustments related to the December 2007 acquisition of Maryland
Midland.
(b) Includes $7.5 million of contingent consideration placed into
escrow by GWI that was paid to the seller of OCR in 2009 upon
satisfaction of certain conditions.
GWI's continuing operations generated free cash flow of $75.0 million and $67.9 million for the years ended December 31, 2009 and 2008, respectively. For the year ended December 31, 2009, changes in working capital increased net cash flow from operating activities by $3.8 million. For the year ended December 31, 2008, changes in working capital increased net cash flow from operating activities by $7.3 million.
Net cash used in investing activities for the year ended December 31, 2009, included $88.9 million in purchases of property and equipment, partially offset by $24.6 million in grant proceeds received from outside parties for the funding of capital projects and $12.3 million from sales of assets and insurance proceeds. Net cash used in investing activities in the year ended December 31, 2008, included $97.9 million in purchases of property and equipment, partially offset by $28.6 million in cash received from government grants and $8.5 million from sales of assets and insurance proceeds.
Conference Call and Webcast Details
As previously announced, GWI's conference call to discuss financial results for the fourth quarter will be held Monday, February 8, 2010, at 11 a.m. EST. The dial-in number for the teleconference is (800) 288-8960; outside U.S., call (612) 332-0107, 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 "Q4 2009 Earnings Announcement 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. EST on February 8, 2010, until the following quarter's results are posted. Telephone replay is available for 30 days beginning at 1 p.m. EST on February 8, 2010, by dialing (800) 475-6701 (or outside U.S., dial 320-365-3844). The access code is 121468.
About Genesee & Wyoming Inc.
GWI owns and operates short line and regional freight railroads in the United States, Canada, Australia and the Netherlands. Operations currently include 62 railroads organized in nine regions, with approximately 6,000 miles of owned and leased track and approximately 3,400 additional miles under track access arrangements. GWI provides rail service at 16 ports in North America and Europe and performs 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 involve risks and uncertainties that could cause actual results to differ materially from its current expectations including, but not limited to, economic, political and industry conditions; customer demand, retention and contract continuation; legislative and regulatory developments; increased competition in relevant markets; funding needs and financing sources; susceptibility to various legal claims and lawsuits; strikes or work stoppages; severe weather conditions and other natural occurrences; and others. Words such as "anticipates," "intends," "plans," "believes," "seeks," "expects," "estimates," variations of these words and similar expressions are intended to identify these forward-looking statements. GWI refers you to the documents that it files from time to time with the Securities and Exchange Commission, such as GWI's Forms 10-Q and 10-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. GWI disclaims any intention to update the current expectations or forward looking statements contained in this press release.
(1) The operating ratios that exclude the items described above are non GAAP financial measures and are not intended to replace the operating ratios calculated using total operating expenses and total revenues, calculated on a basis consistent with GAAP. The information required by Regulation G under the Securities Exchange Act of 1934, including reconciliation to the operating ratios calculated using amounts determined in accordance with GAAP, is included in the tables attached to this press release.
(2) 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 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.
SOURCE: Genesee & Wyoming Inc. |
|
Michael Williams of GWI Corporate Communications |
|
1-203-629-3722 |
|
GENESEE & WYOMING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2009 AND 2008
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------- --------------
2009 2008 2009 2008
---- ---- ---- ----
OPERATING REVENUES $139,907 $149,156 $544,866 $601,984
OPERATING EXPENSES 112,440 118,772 445,544 486,053
------- ------- ------- -------
INCOME FROM OPERATIONS 27,467 30,384 99,322 115,931
GAIN ON SALE OF INVESTMENT
IN BOLIVIA (36) - 391 -
INTEREST INCOME 388 340 1,065 2,093
INTEREST EXPENSE (6,252) (8,406) (26,902) (20,610)
OTHER INCOME/(EXPENSE), NET 206 (90) 2,115 470
--- --- ----- ---
INCOME FROM CONTINUING
OPERATIONS BEFORE
INCOME TAXES 21,773 22,228 75,991 97,884
PROVISION (BENEFIT) FOR
INCOME TAXES 3,519 (3,172) 15,916 24,909
----- ------ ------ ------
INCOME FROM CONTINUING
OPERATIONS 18,254 25,400 60,075 72,975
INCOME/(LOSS) FROM
DISCONTINUED
OPERATIONS, NET OF TAX 50 (14) 1,398 (501)
-- --- ----- ----
NET INCOME 18,304 25,386 61,473 72,474
LESS: NET INCOME
ATTRIBUTABLE TO
NONCONTROLLING INTEREST - (97) (146) (243)
--- --- ---- ----
NET INCOME ATTRIBUTABLE TO
GENESEE & WYOMING INC. $18,304 $25,289 $61,327 $72,231
======= ======= ======= =======
BASIC EARNINGS PER SHARE
ATTRIBUTABLE TO GENESEE &
WYOMING INC. COMMON
STOCKHOLDERS:
BASIC EARNINGS PER
COMMON SHARE FROM
CONTINUING OPERATIONS $0.47 $0.78 $1.66 $2.28
BASIC EARNINGS/(LOSS) PER
COMMON SHARE FROM
DISCONTINUED OPERATIONS - - 0.04 (0.02)
--- --- ---- -----
BASIC EARNINGS PER
COMMON SHARE $0.48 $0.78 $1.70 $2.26
===== ===== ===== =====
WEIGHTED AVERAGE SHARES
- BASIC 38,444 32,404 36,146 31,922
====== ====== ====== ======
DILUTED EARNINGS PER SHARE
ATTRIBUTABLE TO GENESEE &
WYOMING INC. COMMON
STOCKHOLDERS:
DILUTED EARNINGS PER
COMMON SHARE FROM
CONTINUING OPERATIONS $0.44 $0.70 $1.54 $2.00
DILUTED EARNINGS/(LOSS) PER
COMMON SHARE FROM
DISCONTINUED OPERATIONS - - 0.04 (0.01)
--- --- ---- -----
DILUTED EARNINGS PER
COMMON SHARE $0.44 $0.70 $1.57 $1.99
===== ===== ===== =====
WEIGHTED AVERAGE SHARES -
DILUTED 41,338 36,371 38,974 36,348
====== ====== ====== ======
GENESEE & WYOMING INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2009 AND 2008
(In thousands)
(unaudited)
December 31,
---------------
ASSETS 2009 2008
---- ----
CURRENT ASSETS:
Cash and cash equivalents $105,707 $31,693
Accounts receivable, net 109,931 120,874
Materials and supplies 8,939 7,708
Prepaid expenses and other 13,223 12,270
Deferred income tax assets, net 15,161 18,101
Current assets of discontinued operations 282 1,676
--- -----
Total current assets 253,243 192,322
------- -------
PROPERTY AND EQUIPMENT, net 1,024,297 998,995
GOODWILL 161,208 150,958
INTANGIBLE ASSETS, net 244,464 223,442
DEFERRED INCOME TAX ASSETS, net 3,122 -
OTHER ASSETS, net 10,698 21,564
------ ------
Total assets $1,697,032 $1,587,281
========== ==========
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $27,818 $26,034
Accounts payable 104,813 124,162
Accrued expenses 38,181 37,903
Deferred income tax liabilities, net 971 192
Current liabilities of discontinued
operations 11 1,121
-- -----
Total current liabilities 171,794 189,412
------- -------
LONG-TERM DEBT, less current portion 421,616 535,231
DEFERRED INCOME TAX LIABILITIES, net 244,924 234,979
DEFERRED ITEMS - grants from outside parties 146,345 113,302
OTHER LONG-TERM LIABILITIES 23,476 34,943
TOTAL EQUITY 688,877 479,414
------- -------
Total liabilities and equity $1,697,032 $1,587,281
========== ==========
GENESEE & WYOMING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2009 AND 2008
(In thousands)
(unaudited)
Twelve Months Ended
December 31,
-------------------
2009 2008
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $61,473 $72,474
Adjustments to reconcile net income to
net cash provided by operating activities:
(Income)/loss from discontinued operations,
net of tax (1,398) 501
Depreciation and amortization 48,110 40,507
Compensation cost related to equity awards 6,031 5,734
Excess tax benefits from share-based
compensation (1,234) (1,829)
Deferred income taxes 7,558 12,205
Net loss/(gain) on sale and impairment of assets 3,953 (7,708)
Gain on insurance recoveries (3,143) (399)
Insurance proceeds received 2,175 -
Gain on sale of investment in Bolivia (391) -
Changes in assets and liabilities which
provided (used) cash, net of effect of
acquisitions:
Accounts receivable, net 16,082 11,541
Materials and supplies (170) (812)
Prepaid expenses and other (622) 6,597
Accounts payable and accrued expenses (10,940) (18,089)
Other assets and liabilities, net (550) 8,024
---- -----
Net cash provided by
operating activities from
continuing operations 126,934 128,746
Net cash used in operating
activities from discontinued
operations (746) (3,484)
---- ------
Net cash provided by operating activities 126,188 125,262
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (88,865) (97,853)
Grant proceeds from outside parties 24,575 28,551
Cash paid for acquisitions, net (10,141) (345,477)
Contingent consideration held in escrow - (7,500)
Insurance proceeds for the replacement of assets 3,996 419
Proceeds from sale of investment in Bolivia 3,778 -
Proceeds from disposition of property and
equipment 8,313 8,081
----- -----
Net cash used in investing
activities from continuing operations (58,344) (413,779)
------- --------
Net cash provided by investing activities
from discontinued operations 1,774 450
----- ---
Net cash used in investing activities (56,570) (413,329)
------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term borrowings,
including capital leases (214,153) (193,051)
Proceeds from issuance of long-term debt 98,000 468,076
Debt issuance costs - (4,340)
Net proceeds from employee stock purchases 5,765 9,314
Treasury stock purchases (434) (2,355)
Stock issuance proceeds, net of stock issuance
costs 106,614 -
Excess tax benefits from share-based
compensation 1,234 1,829
----- -----
Net cash (used in)/provided by financing
activities from continuing operations (2,974) 279,473
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH
EQUIVALENTS 6,832 (5,973)
----- ------
CHANGE IN CASH BALANCES INCLUDED IN CURRENT
ASSETS OF DISCONTINUED OPERATIONS 538 (424)
--- ----
INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 74,014 (14,991)
CASH AND CASH EQUIVALENTS, beginning of period 31,693 46,684
------ ------
CASH AND CASH EQUIVALENTS, end of period $105,707 $31,693
GENESEE & WYOMING INC. AND SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands)
(unaudited)
Three Months Ended
December 31,
------------------------------------
2009 2008
---------------- ----------------
% of % of
Amount Revenue Amount Revenue
------ ------- ------ -------
Revenues:
---------
Freight $82,089 58.7% $95,188 63.8%
Non-freight 57,818 41.3% 53,968 36.2%
------ ---- ------ ----
Total revenues $139,907 100.0% $149,156 100.0%
======== ===== ======== =====
Operating Expense Comparison:
-----------------------------
Natural Classification
----------------------
Labor and benefits $47,366 33.9% $50,288 33.7%
Equipment rents 7,032 5.0% 8,908 6.0%
Purchased services 12,119 8.7% 10,567 7.1%
Depreciation and
amortization 12,637 9.0% 11,636 7.8%
Diesel fuel used in
operations 9,273 6.6% 11,702 7.8%
Diesel fuel sold to third
parties 4,304 3.1% 5,731 3.8%
Casualties and insurance 4,135 3.0% 3,295 2.2%
Materials 5,283 3.8% 7,330 4.9%
Net (gain)/loss on sale
and impairment of assets (793) (0.6%) (3,891) (2.6%)
Gain on insurance
recoveries 1 0.0% - 0.0%
Other expenses 11,083 7.9% 13,206 8.9%
------ --- ------ ---
Total operating expenses $112,440 80.4% $118,772 79.6%
======== ==== ======== ====
Functional Classification
-------------------------
Transportation $42,912 30.7% $47,073 31.6%
Maintenance of ways and
structures 12,133 8.7% 14,831 9.9%
Maintenance of equipment 16,951 12.1% 18,232 12.2%
Diesel fuel sold to third
parties 4,304 3.1% 5,731 3.8%
General and administrative 24,295 17.4% 25,160 16.9%
Net (gain)/loss on sale
and impairment of assets (793) (0.6%) (3,891) (2.6%)
Gain on insurance
recoveries 1 0.0% - 0.0%
Depreciation and
amortization 12,637 9.0% 11,636 7.8%
------ --- ------ ---
Total operating expenses $112,440 80.4% $118,772 79.6%
======== ==== ======== ====
GENESEE & WYOMING INC. AND SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands)
(unaudited)
Twelve Months Ended
December 31,
------------------------------------
2009 2008
---------------- ----------------
% of % of
Amount Revenue Amount Revenue
------ ------- ------ -------
Revenues:
---------
Freight $333,711 61.2% $369,937 61.5%
Non-freight 211,155 38.8% 232,047 38.5%
------- ---- ------- ----
Total revenues $544,866 100.0% $601,984 100.0%
======== ===== ======== =====
Operating Expense Comparison:
-----------------------------
Natural Classification
----------------------
Labor and benefits $191,479 35.1% $191,108 31.7%
Equipment rents 29,272 5.4% 35,170 5.8%
Purchased services 42,435 7.8% 46,169 7.7%
Depreciation and
amortization 48,110 8.8% 40,507 6.7%
Diesel fuel used in
operations 33,538 6.2% 61,013 10.1%
Diesel fuel sold to third
parties 14,400 2.7% 34,624 5.8%
Casualties and insurance 14,842 2.7% 15,136 2.5%
Materials 21,835 4.0% 26,138 4.3%
Net (gain)/loss on sale
and impairment of assets 3,953 0.7% (7,708) (1.2%)
Gain on insurance
recoveries (3,143) (0.6%) (399) (0.1%)
Restructuring charges 2,288 0.4% - 0.0%
Other expenses 46,535 8.6% 44,295 7.4%
------ --- ------ ---
Total operating expenses $445,544 81.8% $486,053 80.7%
======== ==== ======== ====
Functional Classification
-------------------------
Transportation $167,413 30.8% $199,702 33.1%
Maintenance of ways and
structures 51,713 9.5% 53,529 8.9%
Maintenance of equipment 66,655 12.2% 72,186 12.0%
Diesel fuel sold to third
parties 14,400 2.7% 34,624 5.8%
General and administrative 94,155 17.3% 93,612 15.5%
Net (gain)/loss on sale
and impairment of assets 3,953 0.7% (7,708) (1.2%)
Gain on insurance
recoveries (3,143) (0.6%) (399) (0.1%)
Restructuring charges 2,288 0.4% - 0.0%
Depreciation and
amortization 48,110 8.8% 40,507 6.7%
------ --- ------ ---
Total operating expenses $445,544 81.8% $486,053 80.7%
======== ==== ======== ====
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 Three Months Ended
December 31, 2009 December 31, 2008
-------------------------- --------------------------
Average Average
Revenues Revenues
Freight Per Freight Per
Commodity Group Revenues Carloads Carload Revenues Carloads Carload
-------- -------- ------- -------- -------- -------
Coal, Coke & Ores $16,982 46,892 $362 $22,171 58,490 $379
Pulp & Paper 12,542 20,869 601 16,362 27,988 585
Minerals & Stone 10,484 31,969 328 11,217 37,500 299
Farm & Food
Products 8,886 17,628 504 9,720 21,903 444
Chemicals-Plastics 8,469 12,079 701 8,417 12,328 683
Metals 7,493 15,424 486 9,353 19,206 487
Lumber & Forest
Products 6,171 14,518 425 7,257 16,486 440
Petroleum Products 5,158 7,233 713 4,873 7,123 684
Autos & Auto Parts 1,484 2,352 631 1,109 1,912 580
Other 4,420 18,507 239 4,709 21,872 215
------- ------- ------- -------
Totals $82,089 187,471 $438 $95,188 224,808 $423
======= ======= ======= =======
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)
Twelve Months Ended Twelve Months Ended
December 31, 2009 December 31, 2008
-------------------------- --------------------------
Average Average
Revenues Revenues
Freight Per Freight Per
Commodity Group Revenues Carloads Carload Revenues Carloads Carload
-------- -------- ------- -------- -------- -------
Coal, Coke & Ores $70,944 197,164 $360 $71,628 193,703 $370
Pulp & Paper 50,882 89,217 570 72,353 119,613 605
Minerals & Stone 40,031 134,999 297 45,126 143,991 313
Farm & Food
Products 37,489 83,299 450 39,011 73,432 531
Metals 33,137 68,410 484 42,076 84,817 496
Chemicals-Plastics 32,956 49,008 672 32,538 48,501 671
Lumber & Forest
Products 27,181 61,245 444 33,215 74,665 445
Petroleum Products 19,804 28,553 694 18,503 27,344 677
Autos & Auto Parts 4,967 8,036 618 6,731 11,112 606
Other 16,320 67,255 243 8,756 37,666 232
-------- ------- -------- -------
Totals $333,711 787,186 $424 $369,937 814,844 $454
======== ======= ======== =======
Reconciliation of non-GAAP Financial Measures
This earnings release contains adjusted operating ratios and free cash flow, which are "non-GAAP financial measures" as this term is defined in Regulation G of the Securities Exchange Act of 1934. In accordance with Regulation G, GWI has reconciled these non-GAAP financial measures to its most directly comparable U.S. GAAP measure.
Adjusted Operating Ratios Description and Discussion
Management views its Operating Ratio, calculated as total Operating Expenses divided by total Revenues, as an important measure of GWI's operating performance. Because management believes this is useful for investors in assessing GWI's financial results compared with the same period in the prior year, the Adjusted Operating Ratio for the three months ended December 31, 2009, is presented excluding net gain on sale of assets and for the three months ended December 31, 2008, is presented excluding net gain on the sale of assets and acquisition-related expense. The Adjusted Operating Ratios presented excluding these effects are not intended to represent, and should not be considered more meaningful than, or as an alternative to, the Operating Ratios calculated using amounts in accordance with GAAP.
The following table sets forth a reconciliation of GWI's Operating Ratios calculated using amounts determined in accordance with GAAP to the Adjusted Operating Ratios described above for the three months ended December 31, 2009 and 2008 ($ in millions):
Total
Total Operating Operating Operating
2009 Revenues Expenses Income Ratio
-------- -------- ------ -----
As Reported $139.9 $112.4 $27.5 80.4%
Net gain on sale of
assets - 0.8 (0.8)
--- --- ---
Adjusted $139.9 $113.2 $26.7 80.9%
====== ====== ===== ====
Total
Total Operating Operating Operating
2008 Revenues Expenses Income Ratio
-------- -------- ------ -----
As Reported $149.2 $118.8 $30.4 79.6%
Net gain on sale of
assets - 3.9 (3.9)
Acquisition-related
expense - (2.0) 2.0
--- --- ---
Adjusted $149.2 $120.6 $28.5 80.9%
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Free Cash Flow Description and Discussion
Management views Free Cash Flow as an important financial measure of how well GWI is managing its assets. Subject to the limitations discussed below, Free Cash Flow is a useful indicator of cash flow that may be available for discretionary use by GWI. Free Cash Flow is defined as Net Cash Provided by Operating Activities from Continuing Operations less Net Cash Used in Investing Activities from Continuing Operations, excluding the cost of acquisitions and proceeds from divestitures and contingent consideration held in escrow. Key limitations of the Free Cash Flow measure include the assumptions that GWI will be able to refinance its existing debt when it matures and meet other cash flow obligations from financing activities, such as principal payments on debt. Free Cash Flow is not intended to represent, and should not be considered more meaningful than, or as an alternative to, measures of cash flow determined in accordance with GAAP.
The following table sets forth a reconciliation of GWI's Net Cash Provided by Operating Activities from Continuing Operations to GWI's Free Cash Flow ($ in millions):
Year Ended
December 31,
2009 2008
---- ----
Net cash provided by operating
activities from continuing
operations $126.9 $128.7
Net cash used in investing
activities from continuing
operations (58.3) (413.8)
Net cash paid/(received) for
acquisitions/divestitures 6.4 345.5
Contingent consideration held
in escrow - 7.5
--- ---
Free cash flow $75.0 $67.9
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SOURCE Genesee & Wyoming Inc.
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