RailAmerica, Inc. Reports Third Quarter 2010 Results
JACKSONVILLE, Fla., Oct. 27 /PRNewswire-FirstCall/ --
Third Quarter Highlights
- Carloads up 5% and revenue up 16% versus third quarter 2009.
- Operating income of $28.5 million.
- Adjusted income from continuing operations(1) of $0.18 per share.
- Income from continuing operations of $0.15 per share.
RailAmerica, Inc. (NYSE: RA) today reported financial results for the quarter ended September 30, 2010. Third quarter 2010 revenue increased 16% to $128.3 million from $110.1 million in the third quarter of 2009. Freight revenue increased 11% to $97.7 million with carloads up 5%. Non-freight revenue increased 38% to $30.6 million. Excluding the acquisition of Atlas Railroad Construction Company and the new Ottawa Valley Railway operating agreement, non-freight revenue increased 11% versus third quarter 2009.
John Giles, RailAmerica's President and Chief Executive Officer, said, "Operating income was up 35% versus a year ago excluding the impact of 45G tax credits. These strong results were driven by our continued focus on operating efficiency and solid revenue growth. From a strategic standpoint, we made significant progress by completing the acquisition of Atlas and entering into the new long-term agreement with Ottawa Valley Railway. Pursuing additional, value enhancing acquisitions and investments remains a strategic priority for our team."
RailAmerica reported third quarter 2010 income from continuing operations of $8.0 million, or $0.15 per diluted share. This compares to income from continuing operations of $3.5 million, or $0.08 per diluted share, for the third of quarter 2009. Third quarter 2010 results include expenses of $0.05 per diluted share for interest rate swap termination costs partially offset by a benefit of $0.02 per diluted share from a transaction break-up fee (net of acquisition expenses). Third quarter 2009 results include charges of $0.12 per diluted share for interest rate swap termination costs. Both third quarter 2010 and 2009 had favorable adjustments to income taxes.
Operating income increased 11% to $28.5 million in third quarter 2010 from $25.6 million in the third quarter of 2009. For third quarter 2010 the increase in freight revenue was due to higher volume and average revenue per car. Non-freight revenue was up mainly due to the Atlas acquisition. Third quarter operating expenses increased $15.2 million due to higher volume, the inclusion of Atlas Railroad Construction Company and the absence of 45G tax credit benefits in third quarter 2010. Third quarter 2009 results include a $4.5 million 45G tax credit. Results that exclude the impact of the 45G tax benefit are shown below.
For the Three Months Ended
($ in thousands) September 30,
--------------------------
2010 2009
-------- --------
Operating revenue $128,257 $110,137
Operating expense (99,766) (84,529)
--------- ---------
Operating income, reported 28,491 25,608
Less: Benefit from 45G tax credit
monetization - (4,539)
--------- ---------
Operating income before 45G benefit (1) $28,491 $21,069
(1) See schedule at the end of press release for a reconciliation of
non-GAAP financial measure
As previously announced, RailAmerica, Inc. will present its third quarter earnings on Thursday, October 28, 2010 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 14939140. 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 November 11, 2010 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 14939140.
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 filed with the Commission on March 26, 2010. 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 the end of press release for a reconciliation of non-GAAP financial measure
RAILAMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three For the Nine
Months Ended Months Ended
September 30, September 30,
------------------ ------------------
2010 2009 2010 2009
-------- -------- -------- --------
(In thousands, except per share data)
Operating revenue $128,257 $110,137 $362,655 $316,620
Operating expenses:
Transportation 54,497 47,524 164,779 138,974
Selling, general and
administrative 29,721 26,799 89,907 74,943
Other 5,675 - 5,675 -
Net (gain) loss on sale of
assets (1,708) (159) (1,717) 855
Depreciation and
amortization 11,581 10,365 33,259 30,931
-------- -------- -------- --------
Total operating expenses 99,766 84,529 291,903 245,703
-------- -------- -------- --------
Operating income 28,491 25,608 70,752 70,917
Interest expense (including
amortization costs of
$6,020, $10,398, $20,194
and $18,990, respectively) (19,735) (27,507) (64,592) (62,770)
Other income (loss) 2,264 24 (5,177) (1,396)
-------- -------- -------- --------
Income (loss) from
continuing operations
before income taxes 11,020 (1,875) 983 6,751
Provision for (benefit from)
income taxes 3,052 (5,378) (250) (3,028)
-------- -------- -------- --------
Income from continuing
operations 7,968 3,503 1,233 9,779
Discontinued operations:
Gain (loss) on disposal of
discontinued business (net
of income taxes (benefit)
of $(11) and $12,005,
respectively) - (20) - 12,931
-------- -------- -------- --------
Net income $7,968 $3,483 $1,233 $22,710
======== ======== ======== ========
Dividends declared and paid
per common share $- $- $- $0.46
Basic earnings per common share:
Continuing operations $0.15 $0.08 $0.02 $0.23
Discontinued operations 0.00 0.00 0.00 0.30
-------- -------- -------- --------
Net income $0.15 $0.08 $0.02 $0.53
Diluted earnings per common share:
Continuing operations $0.15 $0.08 $0.02 $0.23
Discontinued operations 0.00 0.00 0.00 0.30
-------- -------- -------- --------
Net income $0.15 $0.08 $0.02 $0.53
Weighted Average common shares
outstanding:
Basic 54,872 43,721 54,769 43,688
Diluted 54,872 43,721 54,769 43,688
RAILAMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, December 31,
2010 2009
------------- ------------
(In thousands, except share data)
ASSETS
Current assets:
Cash and cash equivalents $113,898 $190,218
Accounts and notes receivable, net of
allowance of $5,427 and $4,557, respectively 81,661 66,619
Current deferred tax assets 12,697 12,697
Other current assets 13,691 21,958
---------- ----------
Total current assets 221,947 291,492
Property, plant and equipment, net 978,310 952,527
Intangible assets 141,401 136,654
Goodwill 212,258 200,769
Other assets 13,971 17,187
---------- ----------
Total assets $1,567,887 $1,598,629
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $466 $669
Accounts payable 56,002 53,948
Accrued expenses 45,844 34,675
---------- ----------
Total current liabilities 102,312 89,292
Long-term debt, less current maturities 2,759 3,013
Senior secured notes 570,601 640,096
Deferred income taxes 194,503 185,002
Other liabilities 19,749 21,895
---------- ----------
Total liabilities 889,924 939,298
---------- ----------
Commitments and contingencies
Stockholders' equity:
Common stock, $0.01 par value, 400,000,000
shares authorized; 54,877,105 shares issued
and outstanding at September 30, 2010; and
54,364,306 shares issued and outstanding at
December 31, 2009 549 544
Additional paid in capital and other 634,836 630,653
Retained earnings 47,619 46,386
Accumulated other comprehensive loss (5,041) (18,252)
---------- ----------
Total stockholders' equity 677,963 659,331
---------- ----------
Total liabilities and stockholders' equity $1,567,887 $1,598,629
========== ==========
RAILAMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Nine Months Ended
September 30,
-------------------------
2010 2009
-------- -------
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,233 $22,710
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 36,863 39,858
Amortization of swap termination costs 16,582 10,026
Net gain on sale or disposal of properties (1,717) (70)
Foreign exchange gain on debt - (1,160)
Swap termination costs - (55,750)
Loss on extinguishment of debt 8,357 2,593
Equity compensation costs 5,525 3,146
Deferred income taxes and other (3,770) 3,336
Changes in operating assets and liabilities,
net of acquisitions and dispositions:
Accounts receivable (9,565) 1,906
Other current assets 9,056 1,315
Accounts payable (2,808) (605)
Accrued expenses 10,326 (1,841)
Other assets and liabilities (2,210) (20,336)
-------- -------
Net cash provided by operating activities 67,872 5,128
-------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment (46,771) (34,451)
Proceeds from sale of assets 3,251 20,071
Acquisitions, net of cash acquired (23,926) -
Deferred disposition costs and other - (355)
-------- -------
Net cash used in investing activities (67,446) (14,735)
-------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of senior secured notes - 709,830
Principal payments on long-term debt (391) (625,677)
Repurchase of senior secured notes (76,220) -
Costs associated with sale of common stock (106) -
Dividends paid to common stockholders - (19,485)
Deferred financing costs paid (224) (20,018)
-------- -------
Net cash provided by (used in) financing
activities (76,941) 44,650
-------- -------
Effect of exchange rates on cash 195 214
-------- -------
Net increase (decrease) in cash (76,320) 35,257
Cash, beginning of period 190,218 26,951
-------- -------
Cash, end of period $113,898 $62,208
======== =======
RAILAMERICA, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(amounts in thousands)
(unaudited)
Three Months Ended September 30,
------------------------------------
2010 2009
----------------- -----------------
Operating revenue $128,257 100.0% $110,137 100.0%
Operating expenses:
Labor and benefits 38,745 30.2% 35,755 32.4%
Equipment rents 8,721 6.8% 8,900 8.1%
Purchased services 9,830 7.7% 7,430 6.7%
Diesel fuel 9,760 7.6% 8,373 7.6%
Casualties and insurance 4,816 3.8% 4,593 4.2%
Materials 6,782 5.3% 2,977 2.7%
Joint facilities 2,454 1.9% 2,497 2.3%
Other expenses 8,785 6.8% 8,337 7.5%
Track maintenance credit (45G) - 0.0% (4,539) (4.1)%
Net gain on sale of assets (1,708) (1.3)% (159) (0.1)%
Depreciation and amortization 11,581 9.0% 10,365 9.4%
-------- ----- -------- -----
Total operating expenses 99,766 77.8% 84,529 76.7%
-------- ----- -------- -----
Operating income $28,491 22.2% $25,608 23.3%
======== ===== ======== =====
Nine Months Ended September 30,
------------------------------------
2010 2009
----------------- -----------------
Operating revenue $362,655 100.0% $316,620 100.0%
Operating expenses:
Labor and benefits 114,381 31.5% 101,216 32.0%
Equipment rents 25,857 7.1% 27,327 8.6%
Purchased services 28,058 7.8% 23,123 7.3%
Diesel fuel 31,522 8.7% 23,285 7.3%
Casualties and insurance 13,255 3.7% 13,965 4.4%
Materials 14,581 4.0% 8,138 2.6%
Joint facilities 6,545 1.8% 4,822 1.5%
Other expenses 26,162 7.2% 24,833 7.8%
Track maintenance credit (45G) - 0.0% (12,792) (4.0)%
Net (gain) loss on sale of assets (1,717) (0.5)% 855 0.3%
Depreciation and amortization 33,259 9.2% 30,931 9.8%
------- ----- -------- -----
Total operating expenses 291,903 80.5% 245,703 77.6%
-------- ----- -------- -----
Operating income $70,752 19.5% $70,917 22.4%
======== ===== ======== =====
RAILAMERICA, INC. AND SUBSIDIARIES
Railroad Freight Revenue, Carloads and Average Freight Revenue
Per Carload
Comparison by Commodity Group
(unaudited)
Three Months Ended Three Months Ended
September 30, 2010 September 30, 2009
---------------------------- ----------------------------
Average Average
Freight Freight
Freight Revenue per Freight Revenue per
Revenue Carloads Carload Revenue Carloads Carload
------- -------- ---------- ------- -------- -----------
(Amounts in thousands, except carloads and average
freight revenue per carload)
Agricultural
Products $16,690 32,730 $510 $15,370 31,405 $489
Chemicals 14,639 23,947 611 12,112 20,946 578
Coal 10,303 47,176 218 9,381 46,806 200
Metallic Ores
and Metals 10,136 18,145 559 6,049 10,382 583
Pulp, Paper
and Allied
Products 9,582 17,565 546 8,162 16,267 502
Non-Metallic
Minerals and
Products 8,819 21,421 412 8,562 20,081 426
Forest Products 6,709 11,780 570 6,748 12,078 559
Food or Kindred
Products 6,642 13,660 486 6,061 13,042 465
Waste and Scrap
Materials 5,934 14,231 417 5,468 14,350 381
Petroleum 4,165 9,027 461 4,648 9,909 469
Other 2,492 7,175 347 3,957 8,958 442
Motor Vehicles 1,554 2,642 588 1,483 4,047 366
------- ------- ---- ------- ------- ----
Total $97,665 219,499 $445 $88,001 208,271 $423
======= ======= ==== ======= ======= ====
Nine Months Ended Nine Months Ended
September 30, 2010 September 30, 2009
---------------------------- ----------------------------
Average Average
Freight Freight
Freight Revenue per Freight Revenue per
Revenue Carloads Carload Revenue Carloads Carload
------- -------- ---------- ------- -------- -----------
(Amounts in thousands, except carloads and average
freight revenue per carload)
Agricultural
Products $46,580 97,704 $477 $39,916 88,484 $451
Chemicals 43,928 71,908 611 35,135 60,977 576
Coal 29,662 134,142 221 28,339 136,341 208
Metallic Ores
and Metals 29,198 51,214 570 16,854 29,919 563
Pulp, Paper
and Allied
Products 27,809 49,050 567 24,105 47,177 511
Non-Metallic
Minerals and
Products 26,005 60,624 429 24,620 58,870 418
Food or Kindred
Products 20,821 42,617 489 19,219 39,196 490
Forest Products 20,685 36,091 573 20,559 36,004 571
Waste and Scrap
Materials 17,921 43,361 413 14,791 39,762 372
Petroleum 14,492 31,006 467 14,388 31,260 460
Other 8,335 22,098 377 15,527 43,179 360
Motor Vehicles 5,326 9,202 579 4,154 11,405 364
-------- ------- ---- ------- ------- ----
Total $290,762 649,017 $448 $257,607 622,574 $414
======== ======= ==== ======== ======= ====
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES
Adjusted income (loss) 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 (loss) 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 (loss) 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 (loss) from continuing operations.
2010
----------------------------------
(In thousands, except per
share data) Q1 Q2
After Per After Per
Tax Share Tax Share
----------------------------------
Income (loss) from continuing
operations ($2,514) ($0.05) ($4,221) ($0.08)
Add:
Amortization of swap termination
costs 3,644 0.07 3,437 0.06
Loss on extinguishment of debt - - 5,098 0.09
Acquisition (income) expense - - 159 0.00
Adjusted income (loss) from
continuing operations $1,130 $0.02 $4,473 $0.08
Weighted Average common shares
outstanding (diluted) 54,568 54,869
2010
----------------------------------
(In thousands, except per
share data) Q3 Q3 YTD
After Per After Per
Tax Share Tax Share
----------------------------------
Income (loss) from continuing
operations $7,968 $0.15 $1,233 $0.02
Add:
Amortization of swap termination
costs 2,973 0.05 10,054 0.18
Loss on extinguishment of debt - - 5,098 0.09
Acquisition (income) expense (1,043) (0.02) (884) (0.02)
Adjusted income (loss) from
continuing operations $9,898 $0.18 $15,501 $0.28
Weighted Average common shares
outstanding (diluted) 54,872 54,769
2009
----------------------------------
(In thousands, except per
share data) Q1 Q2
After Per After Per
Tax Share Tax Share
----------------------------------
Income from continuing operations $809 $0.02 $5,467 $0.13
Add:
Amortization of swap termination
costs - - 583 0.01
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 (loss) from
continuing operations $1,507 $0.03 $6,212 $0.15
Weighted Average common shares
outstanding (diluted) 43,604 43,740
2009
----------------------------------
(In thousands, except per
share data) Q3 Q3 YTD
After Per After Per
Tax Share Tax Share
-----------------------------------
Income from continuing operations $3,503 $0.08 $9,779 $0.23
Add:
Amortization of swap termination
costs 5,432 0.12 6,015 0.14
Foreign exchange loss (gain) on
debt - - (696) (0.02)
Loss on extinguishment of debt - - 1,556 0.04
Acquisition costs - - - -
Adjusted income (loss) from
continuing operations $8,935 $0.20 $16,654 $0.39
Weighted Average common shares
outstanding (diluted) 43,721 43,688
Note: Numbers may not add due to rounding
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES
Operating Income Before 45G Benefit and Operating Ratio Before 45G Benefit are supplemental measures of profitability that are not calculated or presented in accordance with U.S. generally accepted accounting principles ("GAAP"). We use non-GAAP financial measures as a supplement to our GAAP results in order to provide a more complete understanding of the factors and trends affecting our business. However, Operating Income Before 45G Benefit and Operating Ratio Before 45G Benefit have limitations as an analytical tool. They are not measurements of our profitability under GAAP and should not be considered as an alternative to Operating Income or Operating Ratio as a measure of profitability.
Operating Income Before 45G Benefit and Operating Ratio Before 45G Benefit assists us in measuring our performance and profitability of our operations without the impact of monetizing the 45G Tax Benefit. The following table sets forth the reconciliation of Operating Income Before 45G Benefit from our Operating Income and Operating Ratio Before 45G Benefit from our Operating Ratio.
Quarter Ended September 30,
------------------------------------------
($ in thousands) 2010 2009
------------------ -----------------
Operating revenue $128,257 $110,137
Operating expense (99,766) (84,529)
-------- --------
Operating income, reported $28,491 $25,608
Operating ratio, reported 77.8% 76.7%
Less: Benefit from 45G tax
credit monetization - 0.0% (4,539) (4.1%)
------------------ -----------------
Operating income, before 45G
benefit $28,491 $21,069
Operating ratio, before 45G
benefit 77.8% 80.9%
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES
Adjusted EBITDA, is a supplemental measure of liquidity 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 EBITDA has limitations as an analytical tool. It is not a measurement of our cash flows from operating activities under GAAP and should not be considered as an alternative to cash flow from operating activities as a measure of liquidity.
Adjusted EBITDA assists us in monitoring our ability to undertake key investing and financing functions such as making investments, transferring property, paying dividends, and incurring additional indebtedness, which are generally prohibited by the covenants under our senior secured notes unless we met certain financial ratios and tests. Adjusted EBITDA represents EBITDA before impairment of assets, equity compensation costs, gain (loss) on foreign currency exchange, acquisition costs and non-recurring headquarter relocation costs. EBITDA, also a non-GAAP financial measure, is defined as net income (loss) before interest expense, provision for (benefit from) income taxes and depreciation and amortization.
The following tables set forth the reconciliation of Adjusted EBITDA from our cash flow from operating activities (in thousands):
Q1 2010 Q2 2010 Q3 2010 YTD 2010
------- ------- ------- --------
Cash flows from operating
activities to Adjusted
EBITDA Reconciliation:
Net cash provided by
operating activities $25,440 $33,290 $9,142 $67,872
Changes in working
capital accounts (10,191) (13,583) 18,975 (4,799)
Depreciation and
amortization, including
amortization of debt
issuance costs classified
in interest expense (12,151) (11,988) (12,724) (36,863)
Amortization of swap
termination costs (6,073) (5,635) (4,874) (16,582)
Net gain (loss) on sale
or disposal of
properties 34 (25) 1,708 1,717
Loss on debt
extinguishment - (8,357) - (8,357)
Equity compensation costs (1,525) (1,965) (2,035) (5,525)
Deferred income taxes 1,952 4,042 (2,224) 3,770
------- ------- ------- --------
Net income (loss) (2,514) (4,221) 7,968 1,233
------- ------- ------- --------
Add: Discontinued
operations (gain)/loss - - - -
------- ------- ------- --------
Income (loss) from
continuing operations (2,514) (4,221) 7,968 1,233
Add:
Benefit from income taxes (530) (2,772) 3,052 (250)
Interest expense, Including
amortization costs 22,704 22,153 19,735 64,592
Depreciation and
amortization 10,923 10,755 11,581 33,259
------- ------- ------- --------
EBITDA 30,583 25,915 42,336 98,834
Add:
Equity compensation costs 1,525 1,965 2,035 5,525
Loss on debt
extinguishment - 8,357 - 8,357
Acquisition income, net
of expense - 261 (1,710) (1,449)
------- ------- ------- --------
Adjusted EBITDA $32,108 $36,498 $42,661 $111,267
======= ======= ======= ========
Q1 2009 Q2 2009 Q3 2009 YTD 2009
------- ------- ------- --------
Cash flows from
operating activities
to Adjusted EBITDA
Reconciliation:
Net cash provided by
(used in) operating
activities $(6,335) $(37,023) $48,486 $5,128
Changes in working
capital accounts 25,308 23,423 (29,170) 19,561
Depreciation and
amortization, including
amortization of debt
issuance costs
classified in
interest expense (15,432) (12,718) (11,708) (39,858)
Amortization of swap
termination costs -- (972) (9,054) (10,026)
Net gain (loss) on
sale or disposal of
properties 728 (787) 129 70
Foreign exchange gain
(loss) on debt (1,164) 2,324 -- 1,160
Swap termination costs -- 55,750 -- 55,750
Loss on debt extinguishment -- (2,593) -- (2,593)
Equity compensation costs (790) (1,152) (1,204) (3,146)
Deferred income taxes (1,322) (8,018) 6,004 (3,336)
------- ------- ------- --------
Net income 993 18,234 3,483 22,710
------- ------- ------- --------
Add: Discontinued
operations (income/
gain) loss (184) (12,767) 20 (12,931)
------- ------- ------- --------
Income from continuing
operations 809 5,467 3,503 9,779
Add:
Provision for (benefit
from) income taxes 1,232 1,118 (5,378) (3,028)
Interest expense,
including
amortization costs 18,590 16,673 27,507 62,770
Depreciation and
amortization 10,319 10,247 10,365 30,931
------- ------- ------- --------
EBITDA 30,950 33,505 35,997 100,452
Add:
Equity compensation costs 790 1,152 1,204 3,146
Foreign exchange
(gain) loss on debt 1,164 (2,324) - (1,160)
Loss on debt
extinguishment -- 2,593 - 2,593
Non-recurring headquarter
relocation costs 509 127 408 1,044
------- ------- ------- --------
Adjusted EBITDA $33,413 $35,053 $37,609 $106,075
======= ======= ======= ========
SOURCE RailAmerica
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