RailAmerica, Inc. Reports Fourth Quarter and Full Year 2010 Results and Announces Share Repurchase Program
JACKSONVILLE, Fla., Feb. 23, 2011 /PRNewswire/ --
Fourth Quarter Highlights
- Carloads up 4% and revenue up 17% versus fourth quarter 2009.
- Income from continuing operations of $0.33 per share.
- Adjusted income from continuing operations(1) of $0.38 per share.
- 45G tax credits contribute $0.20 per share.
- Board of Directors approves $50 million stock repurchase program.
RailAmerica, Inc. (NYSE: RA) today reported financial results for the quarter and year ended December 31, 2010. Fourth quarter 2010 revenue increased 17% to $127.6 million from $109.2 million in the fourth quarter of 2009. Freight revenue increased 13% to $98.0 million with carloads up 4%. Non-freight revenue increased 34% to $29.6 million. Excluding the acquisition of Atlas Railroad Construction Company and the new Ottawa Valley Railway operating agreement, non-freight revenue increased 18% versus fourth quarter 2009.
John Giles, RailAmerica's President and Chief Executive Officer, said "We had a strong finish to 2010 and are well positioned for further progress as we move into 2011. Our fourth quarter operating income was up 35% excluding the impacts of 45G tax credits, asset sales and last year's IPO-related charges. We intend to build on this solid base during 2011 as we continue to leverage a slow, but improving economy, continuous improvements in productivity, and the effective deployment of capital.”
"Given our strong cash position and cash flow, we have announced a $50 million share repurchase program. We see repurchasing our shares as an excellent investment, which complements our focus on building shareholder value through organic growth and acquisitions."
RailAmerica reported fourth quarter 2010 income from continuing operations of $17.9 million, or $0.33 per diluted share. This compares to a loss from continuing operations of $6.9 million, or $0.13 per diluted share in the fourth quarter of 2009. Noteworthy items impacting the fourth quarters of 2010 and 2009 include:
- 45G tax credits: Congress extended the credits in December 2010 resulting in the full-year income statement amount of $17.6 million benefiting the fourth quarter of 2010. In 2009, credits totaling $16.7 million were recognized in the income statement throughout the year with $3.9 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 2009.
- Gain on asset sales: The Company recorded a $26.8 million pre-tax gain in the fourth quarter of 2009 for the termination of the Ottawa Valley Railway lease. Income tax expense included a provision for the gain and repatriation of proceeds.
- Amortization of swap termination costs: Non-cash charges of $4.3 million and $6.6 million were recorded in interest expense during the fourth quarter of 2010 and 2009, respectively, due to the June 2009 termination of an interest rate swap agreement.
- Debt retirement costs: The early retirement of $74.0 million of senior notes in the fourth quarter of 2009 resulted in charges of $6.9 million, which are reflected in other income (loss) for that quarter.
- IPO-related charges: In connection with the fourth quarter 2009 initial public offering (IPO), the company recorded for that quarter a $6.3 million non-cash charge in labor and benefits for the expiration of a restricted stock repurchase feature.
For the Three Months Ended
December 31,
($ in thousands except EPS) 2010 2009
------------------ ------------------
Pre Tax EPS Pre Tax EPS
------------------ ------------------
45G tax credits $17,589 $0.20 $3,864 $0.05
Net gain on asset sales / lease
termination 474 0.01 26,694 0.08
Amortization of swap termination
costs (4,309) (0.05) (6,590) (0.08)
Debt retirement costs - - (6,906) (0.08)
IPO costs - - (6,261) (0.08)
Note: Effective tax rates of 39% and 35% for 2010 and 2009
respectively. OVRR pre tax gain of $26.8 million resulted in
$22.7 million of tax expense for the gain and earnings repatriation.
The company reported operating income of $43.8 million in the fourth quarter of 2010 compared to $43.3 million in the fourth quarter of 2009. Fourth quarter operating income and expenses were impacted by 45G tax credits, gains on asset sales and the IPO-related charge discussed above. Other fourth quarter 2010 operating expenses were up due to increased business levels, higher fuel prices and the inclusion of Atlas Railroad Construction Company. Operating income excluding the impact of the 45G tax credits, asset sales and IPO-related charges is shown below.
For the Three Months Ended
December 31,
--------------------------
2010 2009
-------- --------
($ in thousands)
Operating revenue $127,636 $109,154
Operating expense 83,881 65,866
-------- --------
Operating income, reported 43,755 43,288
Less: Benefit from 45G tax credit monetization (17,589) (3,864)
-------- --------
Operating income before 45G Benefit(1) 26,166 39,424
Less net gain on sale of assets (474) (26,694)
Addback IPO charge - 6,261
-------- --------
Operating income before 45G Benefit,
Asset sales & IPO Charge(1) $25,692 $18,991
(1) See schedule at the end of press release for a reconciliation of
non-GAAP financial measure
For the full year of 2010, operating revenue increased 15% to $490.3 million from $425.8 million in 2009. Full year 2010 income from continuing operations was $19.1 million, or $0.35 per diluted share. This compares to income from continuing operations of $2.9 million, or $0.07 per diluted share for the full year of 2009.
RailAmerica announced today that its board of directors authorized the repurchase of up to $50 million of the Company's common stock. Under the program, the Company may purchase common stock from time to time in the open market or in privately negotiated transactions. The amount and timing of the purchase will depend on a number of factors including the price and availability of the Company's shares, trading volume and general market conditions.
As previously announced, RailAmerica, Inc. will present its fourth quarter earnings on Thursday, February 24, 2011 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 (574) 941-1456. The conference ID number is 37000651. 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 March 10, 2011 beginning approximately two hours after the call. The recording can be accessed by dialing (800) 642-1687 or (706) 645-9291. The conference ID number is 37000651.
RailAmerica, Inc. owns and operates short line and regional freight railroads in North America, operating a portfolio of 40 individual railroads with approximately 7,300 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 For the
quarters ended years ended
December 31, December 31,
2010 2009 2010 2009
-------- -------- -------- --------
(In thousands, except per share data)
Operating revenue $127,636 $109,154 $490,291 $425,774
Operating expenses:
Labor and benefits 39,612 42,388 153,993 143,604
Equipment rents 8,262 8,651 34,119 35,978
Purchased services 9,913 7,791 37,971 30,914
Diesel fuel 11,794 10,005 43,316 33,290
Casualties and insurance 4,319 2,830 17,574 16,795
Materials 5,026 3,261 19,607 11,399
Joint facilities 2,122 2,120 8,667 6,942
Other expenses 9,064 8,204 35,226 33,037
Track maintenance expense
reimbursement (17,589) (3,864) (17,589) (16,656)
Net gain on sale of assets (474) (26,694) (2,191) (25,839)
Depreciation and amortization 11,832 11,174 45,091 42,105
-------- -------- -------- --------
Total operating expenses 83,881 65,866 375,784 311,569
-------- -------- -------- --------
Operating income 43,755 43,288 114,507 114,205
Interest expense, including
amortization costs (19,183) (24,108) (83,775) (86,878)
Other income (loss) 418 (6,721) (4,759) (8,117)
-------- -------- -------- --------
Income from continuing
operations before income taxes 24,990 12,459 25,973 19,210
Provision for income taxes 7,106 19,327 6,856 16,299
-------- -------- -------- --------
Income (loss) from continuing
operations 17,884 (6,868) 19,117 2,911
Discontinued operations:
Gain on disposal of discontinued
business (net of income taxes
of $0, $0, $0, and $12,006,
respectively) --- --- --- 12,931
-------- -------- -------- --------
Net income (loss) $17,884 $(6,868) $19,117 $15,842
======== ======== ======== ========
Dividends declared and paid
per common share $--- $--- $--- $0.46
Basic earnings (loss) per
common share:
Continuing operations $0.33 $(0.13) $0.35 $0.07
Discontinued operations --- --- --- 0.28
-------- -------- -------- --------
Net income (loss) $0.33 $(0.13) $0.35 $0.35
Diluted earnings (loss) per
common share:
Continuing operations $0.33 $(0.13) $0.35 $0.07
Discontinued
operations --- --- --- 0.28
-------- -------- -------- --------
Net income (loss) $0.33 $(0.13) $0.35 $0.35
Weighted average common shares
outstanding:
Basic 54,864 52,849 54,793 45,979
Diluted 54,864 52,849 54,793 45,979
RAILAMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31,
----------------------
2010 2009
---------- ----------
(In thousands, except share data)
ASSETS
Current assets:
Cash and cash equivalents $152,968 $190,218
Accounts and notes receivable, net of
allowance of $6,767 and $4,557, respectively 74,668 66,619
Current deferred tax assets 12,769 12,697
Other current assets 15,200 21,958
---------- ----------
Total current assets 255,605 291,492
Property, plant and equipment, net 981,622 952,527
Intangible assets 140,546 136,654
Goodwill 212,495 200,769
Other assets 13,385 17,187
---------- ----------
Total assets $1,603,653 $1,598,629
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $403 $669
Accounts payable 66,258 53,948
Accrued expenses 36,913 34,675
---------- ----------
Total current liabilities 103,574 89,292
Long-term debt, less current maturities 2,147 3,013
Senior secured notes 571,161 640,096
Deferred income taxes 202,985 185,002
Other liabilities 19,037 21,895
---------- ----------
Total liabilities 898,904 939,298
---------- ----------
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
54,364,306 shares issued and outstanding at
December 31, 2009 549 544
Additional paid in capital and other 636,757 630,653
Retained earnings 65,503 46,386
Accumulated other comprehensive income (loss) 1,940 (18,252)
---------- ----------
Total stockholders' equity 704,749 659,331
---------- ----------
Total liabilities and stockholders' equity $1,603,653 $1,598,629
========== ==========
RAILAMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Year Ended Year Ended
December 31, December 31,
2010 2009
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $19,117 $15,842
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 52,340
Amortization of swap termination costs 20,891 16,616
Net gain on sale or disposal of properties (2,191) (26,765)
Foreign exchange gain on debt --- (1,160)
Swap termination costs --- (55,750)
Loss on extinguishment of debt 8,357 9,499
Equity compensation costs 7,534 10,712
Deferred income taxes and other 2,765 21,057
Changes in operating assets and liabilities,
net of acquisitions and dispositions:
Accounts receivable (2,435) 10,873
Other current assets 7,512 (3,093)
Accounts payable 7,574 (3,183)
Accrued expenses 1,268 (16,677)
Other assets and liabilities (3,070) (20,771)
---------- ----------
Net cash provided by operating
activities 117,169 9,540
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment (62,710) (47,789)
NECR government grant reimbursements 4,884 -
Proceeds from sale/disposition of assets 4,108 90,340
Deferred acquisition/disposition costs
and other --- (355)
Acquisition, net of cash acquired (23,926) -
---------- ----------
Net cash (used in) provided by
investing activities (77,644) 42,196
---------- ----------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from issuance of senior secured notes --- 709,830
Principal payments on long-term debt (622) (625,898)
Repurchase of senior secured notes (76,220) (76,220)
Sale of common stock (106) 143,123
Dividends paid to common stockholders --- (19,485)
Deferred financing costs paid (224) (20,175)
---------- ----------
Net cash (used in) provided by
financing activities (77,172) 111,175
---------- ----------
Effect of exchange rates on cash 397 356
Net (decrease) increase in cash (37,250) 163,267
Cash, beginning of period 190,218 26,951
---------- ----------
Cash, end of period $152,968 $190,218
========== ==========
RAILAMERICA, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(Amounts in thousands)
(Unaudited)
Years Ended December 31,
-------------------------------------
2010 2009
----------------- -----------------
Operating revenue $490,291 100.0% $425,774 100.0%
Operating expenses:
Labor and benefits 153,993 31.4% 143,604 33.7%
Equipment rent 34,119 7.0% 35,978 8.5%
Purchased services 37,971 7.7% 30,914 7.3%
Diesel fuel 43,316 8.8% 33,290 7.8%
Casualties and insurance 17,574 3.6% 16,795 3.9%
Materials 19,607 4.0% 11,399 2.7%
Joint facilities 8,667 1.8% 6,942 1.6%
Other expenses 35,226 7.2% 33,037 7.8%
Track maintenance expense
reimbursement (17,589) -3.6% (16,656) -3.9%
Net gain on sale of assets (2,191) -0.5% (25,839) -6.1%
Depreciation and amortization 45,091 9.2% 42,105 9.9%
-------- -------- -------- --------
Total operating expenses 375,784 76.6% 311,569 73.2%
-------- -------- -------- --------
Operating income 114,507 23.4% 114,205 26.8%
======== ======== ======== ========
Quarters Ended December 31,
-------------------------------------
2010 2009
----------------- -----------------
Operating revenue $127,636 100.0% $109,154 100.0%
Operating expenses:
Labor and benefits 39,612 31.0% 42,388 38.8%
Equipment rent 8,262 6.5% 8,651 7.9%
Purchased services 9,913 7.8% 7,791 7.1%
Diesel fuel 11,794 9.2% 10,005 9.2%
Casualties and insurance 4,319 3.4% 2,830 2.6%
Materials 5,026 3.9% 3,261 3.0%
Joint facilities 2,122 1.7% 2,120 2.0%
Other expenses 9,064 7.1% 8,204 7.5%
Track maintenance expense
reimbursement (17,589) -13.8% (3,864) -3.5%
Net gain on sale of assets (474) -0.4% (26,694) -24.5%
Depreciation and amortization 11,832 9.3% 11,174 10.2%
-------- -------- -------- --------
Total operating expenses 83,881 65.7% 65,866 60.3%
-------- -------- -------- --------
Operating income 43,755 34.3% 43,288 39.7%
======== ======== ======== ========
RAILAMERICA, INC. AND SUBSIDIARIES
Railroad Freight Revenue, Carloads and Average Freight Revenue
Per Carload
Comparison by Commodity Group
(Unaudited)
Year ended Year ended
December 31, 2010 December 31, 2009
------------------------- -------------------------
Average Average
Freight Freight
Revenue Revenue
Freight per Freight per
Revenue Carloads Carload Revenue Carloads Carload
-------- -------- -------- -------- -------- --------
(In thousands, except carloads and average freight
revenue per carload)
Agricultural
Products $63,999 132,952 $481 $56,458 126,683 $446
Chemicals 59,038 96,105 614 47,475 82,083 578
Coal 39,880 178,735 223 36,914 178,028 207
Metallic Ores
and Metals 37,825 66,626 568 23,819 41,602 573
Pulp, Paper and
Allied Products 37,379 65,308 572 32,339 62,816 515
Non-Metallic
Minerals and
Products 34,646 80,376 431 31,622 75,766 417
Food or Kindred
Products 28,027 56,812 493 25,386 52,298 485
Forest Products 27,017 47,048 574 26,698 46,999 568
Waste and Scrap
Materials 23,765 57,121 416 20,232 53,706 377
Petroleum 19,542 41,952 466 19,433 41,960 463
Other 10,937 29,883 366 17,737 49,613 358
Motor Vehicles 6,694 11,553 579 6,454 17,458 370
-------- -------- -------- -------- -------- --------
Total $388,749 864,471 $450 $344,567 829,012 $416
======== ======== ======== ======== ======== ========
Quarter Ended Quarter Ended
December 31, 2010 December 31, 2009
------------------------- -------------------------
Average Average
Freight Freight
Revenue Revenue
Freight per Freight per
Revenue Carloads Carload Revenue Carloads Carload
-------- -------- -------- -------- -------- --------
(In thousands, except carloads and average freight
revenue per carload)
Agricultural
Products $17,418 35,248 $494 $16,542 38,199 $433
Chemicals 15,109 24,197 624 12,339 21,106 585
Coal 10,219 44,593 229 8,576 41,687 206
Pulp, Paper and
Allied Products 9,571 16,258 589 8,233 15,639 526
Non-Metallic
Minerals and
Products 8,641 19,752 437 7,002 16,896 414
Metallic Ores
and Metals 8,627 15,412 560 6,964 11,683 596
Food or Kindred
Products 7,206 14,195 508 6,168 13,102 471
Forest Products 6,331 10,957 578 6,139 10,995 558
Waste and Scrap
Materials 5,844 13,760 425 5,441 13,944 390
Petroleum 5,051 10,946 461 5,045 10,700 471
Other 2,602 7,785 334 2,211 6,434 344
Motor Vehicles 1,368 2,351 582 2,300 6,053 380
-------- -------- -------- -------- -------- --------
Total $97,987 215,454 $455 $86,960 206,438 $421
======== ======== ======== ======== ======== ========
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES
Adjusted income from continuing operations 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 income from continuing operations 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 Income (loss) from continuing operations as a measure of profitability.
Adjusted income from continuing operations assists us in measuring our performance and profitability of our operations without the impact of foreign exchange loss (gain) on debt and transaction costs related to debt extinguishment, acquisitions and swap termination. The following table sets forth the reconciliation of Adjusted income from continuing operations.
2010
-----------------------------------------------------
(In thousands,
except per share
data) Q1 Q2 Q3
After Per After Per After Per
Tax Share Tax Share Tax Share
-------- -------- -------- -------- -------- --------
Income (loss)
from continuing
operations ($2,514) ($0.05) ($4,221) ($0.08) $7,968 $0.15
Add:
Amortization of
swap termination
costs 3,644 0.07 3,437 0.06 2,973 0.05
Loss on
extinguishment
of debt --- --- 5,098 0.09 --- ---
Acquisition (income)
expense --- --- 159 --- (1,043) (0.02)
Adjusted income
from continuing
operations $1,130 $0.02 $4,473 $0.08 $9,898 $0.18
Weighted Average
common shares
outstanding
(diluted) 54,568 54,869 54,872
2010
----------------------------------
(In thousands, except
per share data) Q4 Q4 YTD
After Per After Per
Tax Share Tax Share
-------- -------- -------- --------
Income (loss) from continuing
operations $17,884 $0.33 $19,117 $0.35
Add:
Amortization of swap termination
costs 2,628 0.05 12,683 0.23
Loss on extinguishment of debt --- --- 5,098 0.09
Acquisition (income) expense 91 --- (793) (0.01)
Adjusted income from continuing
operations $20,603 $0.38 $36,104 $0.66
Weighted Average common shares
outstanding (diluted) 54,864 54,793
Note: Numbers may not add due to rounding
2009
-----------------------------------------------------
(In thousands,
except per share
data) Q1 Q2 Q3
After Per After Per After Per
Tax Share Tax Share Tax Share
-------- -------- -------- -------- -------- --------
Income (loss)
from continuing
operations $809 $0.02 $5,467 $0.13 $3,503 $0.08
Add:
Amortization of
swap termination
costs --- --- 583 0.01 5,432 0.12
Foreign exchange
loss (gain) on debt 698 0.02 (1,394) (0.03) --- ---
Loss on extinguishment
of debt --- --- 1 ,556 0.04 --- ---
Acquisition costs --- --- --- --- --- ---
Adjusted income
from continuing
operations $1,507 $0.03 $6,212 $0.15 $8,935 $0.20
Weighted Average
common shares
outstanding
(diluted) 43,604 43,740 43,721
2009
----------------------------------
(In thousands, except
per share data) Q4 Q4 YTD
After Per After Per
Tax Share Tax Share
-------- -------- -------- --------
Income (loss) from continuing
operations ($6,868) ($0.13) $2,911 $0.07
Add:
Amortization of swap termination
costs 4,284 0.08 10,299 0.22
Foreign exchange loss (gain) on debt --- --- (696) (0.02)
Loss on extinguishment of debt 4,489 0.08 6,045 0.13
Acquisition costs --- --- --- ---
Adjusted income from continuing
operations $1,904 $0.04 $18,559 $0.41
Weighted Average common shares
outstanding (diluted) 52,849 45,979
Note: Numbers may not add due to rounding
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES
Operating Income Before 45G Benefit, Operating Ratio Before 45G Benefit, Operating Income Before 45G Benefit, Asset sales and IPO Charge and Operating Ratio Before 45G Benefit, Asset sales and IPO Charge 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 Before 45G Benefit, Operating Ratio Before 45G Benefit, Operating Income Before 45G Benefit, Asset sales and IPO Charge and Operating Ratio Before 45G Benefit, Asset sales and IPO Charge have limitations as an analytical tool. They are not measurements of our profitability under GAAP and should not be considered as an alternative to Operating Income or Operating Ratio as a measure of profitability.
Operating Income Before 45G Benefit and Operating Ratio Before 45G Benefit assists us in measuring our performance and profitability of our operations without the impact of monetizing the 45G Tax Benefit. Operating Income Before 45G Benefit, Asset sales and IPO Charge and Operating Ratio Before 45G Benefit, Asset sales and IPO Charge assists us in measuring our performance and profitability of our operations without the impact of monetizing the 45G Tax Benefit, asset sales and IPO charges. The following table sets forth the reconciliation of Operating Income Before 45G Benefit from our Operating Income, Operating Ratio Before 45G Benefit from our Operating Ratio, Operating Income Before 45G Benefit, Asset sales and IPO Charge from our Operating Income and Operating Ratio Before 45G Benefit, Asset sales and IPO charge from our Operating Ratio.
2010
-----------------------------------------------------
($ in thousands) Q1 Q2 Q3
----------------- ----------------- -----------------
Operating revenue $114,941 $119,457 $128,257
Operating expense 95,740 96,397 99,766
----------------- ----------------- -----------------
Operating income,
reported 19,201 23,060 28,491
Operating ratio
Reported 83.3% 80.7% 77.8%
Less: Benefit from
45G tax credit
monetization - 0.0% - 0.0% - 0.0%
----------------- ----------------- -----------------
Operating income
before 45G
Benefit 19,201 23,060 28,491
Operating ratio
before 45G
Benefit 83.3% 80.7% 77.8%
Net (gain) loss
on sale of assets (34) 0.0% 25 0.0% (1,708) 1.3%
Addback IPO charge --- 0.0% --- 0.0% --- 0.0%
----------------- ----------------- -----------------
Operating income
before 45G
Benefit, Asset
sales & IPO
Charge $19,167 $23,085 $26,783
Operating ratio,
before 45G
Benefit, Asset
sales & IPO
Charge 83.3% 80.7% 79.1%
2010
-----------------------------------
($ in thousands) Q4 FY
----------------- -----------------
Operating revenue $127,636 $490,291
Operating expense 83,881 375,784
----------------- -----------------
Operating income, reported 43,755 114,507
Operating ratio Reported 65.7% 76.6%
Less: Benefit from 45G tax credit
monetization (17,589) 13.8% (17,589) 3.6%
----------------- -----------------
Operating income before 45G Benefit 26,166 96,918
Operating ratio before 45G Benefit 79.5% 80.2%
Net (gain) loss on sale of assets (474) 0.4% (2,191) 0.4%
Addback IPO charge --- 0.0% --- 0.0%
----------------- -----------------
Operating income before 45G
Benefit, Asset sales & IPO Charge $25,692 $94,727
Operating ratio, before 45G
Benefit, Asset sales & IPO Charge 79.9% 80.7%
Note: Numbers may not add due to rounding
2009
-----------------------------------------------------
($ in thousands) Q1 Q2 Q3
----------------- ----------------- -----------------
Operating revenue $103,218 $103,265 $110,137
Operating expense 81,423 79,751 84,529
----------------- ----------------- -----------------
Operating income,
reported 21,795 23,514 25,608
Operating ratio
Reported 78.9% 77.2% 76.7%
Less: Benefit from
45G tax credit
monetization (4,124) 4.0% (4,129) 4.0% (4,539) 4.1%
----------------- ----------------- -----------------
Operating income
before 45G
Benefit 17,671 19,385 21,069
Operating ratio
before 45G
Benefit 82.9% 81.2% 80.9%
Net (gain) loss
on sale of
assets (454) 0.4% 1,468 -1.4% (159) 0.1%
Addback IPO charge --- 0.0% --- 0.0% --- 0.0%
----------------- ----------------- -----------------
Operating income
before 45G Benefit,
Asset sales & IPO
Charge $17,217 $20,853 $20,910
Operating ratio,
before 45G Benefit,
Asset sales & IPO
Charge 83.3% 79.8% 81.0%
2009
-----------------------------------
($ in thousands) Q4 FY
----------------- -----------------
Operating revenue $109,154 $425,774
Operating expense 65,866 311,569
----------------- -----------------
Operating income, reported 43,288 114,205
Operating ratio Reported 60.3% 73.2%
Less: Benefit from 45G tax credit
monetization (3,864) 3.5% (16,656) 3.9%
----------------- -----------------
Operating income before 45G Benefit 39,424 97,549
Operating ratio before 45G Benefit 63.9% 77.1%
Net (gain) loss on sale of assets (26,694) 24.5% (25,839) 6.1%
Addback IPO charge 6,261 -5.7% 6,261 -1.5%
----------------- -----------------
Operating income before 45G
Benefit, Asset sales & IPO Charge $18,991 $77,971
Operating ratio, before 45G
Benefit, Asset sales & IPO Charge 82.6% 81.7%
Note: Numbers may not add due to rounding
SOURCE RailAmerica, Inc.
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