Exhibit 99.1
Genesee & Wyoming Reports Results for the Second Quarter of 2015
DARIEN, Conn.--(BUSINESS WIRE)--August 3, 2015--Genesee & Wyoming Inc. (G&W) (NYSE:GWR)
Second Quarter Highlights
- Operating revenues increased 30.8% to $542.2 million from $414.6 million.
- Same railroad operating revenues, excluding the $18.3 million negative impact of foreign currency depreciation, declined 10.2%, primarily due to weakness in iron ore, utility coal and steel shipments.
- Adjusted income from operations (operating income) decreased 9.6% to $99.8 million; Reported income from operations decreased 9.7% to $99.5 million. (1)
- Adjusted diluted earnings per common share (EPS) decreased 17.0% to $0.93; Reported diluted EPS decreased 14.0% to $0.92. (1)
Jack Hellmann, President and CEO of G&W, commented, “Our financial results for the second quarter of 2015 were consistent with our updated guidance. However, our results were disappointing with second quarter adjusted diluted earnings per share declining 17% versus last year. At a high level, our North American operating income was down 10%, primarily due to significant weakness in utility coal and steel and scrap shipments in the United States, which more than overcame the benefits of the Pinsly Arkansas acquisition and Rapid City, Pierre & Eastern start-up. In addition, Australian operating income was down 40%, primarily due to the previously announced closures of several customer iron ore mines. Partially offsetting these declines was a positive earnings contribution from the newly-acquired Freightliner Group, which were included in our financial results for the first full period in the second quarter.”
“In North America, our same railroad revenue excluding the impact of foreign currency declined 8.2%, with the two largest areas of weakness being a 31% decline in coal revenue, primarily due to competition from low priced natural gas, and a 22% decline in steel and scrap revenue, primarily due to competition from imported steel. In response to the revenue shortfall, we aggressively reduced expenses, maintaining a North American operating ratio of 75.4%.”
“In Australia, our same railroad revenue excluding the impact of foreign currency decreased over 20% in the second quarter due to reduced iron ore shipments, while our management team continued to intensely manage costs. Meanwhile, the addition of Freightliner Australia in New South Wales is enhancing the scope of new business development opportunities outside of our existing Australian geographies.”
“In the United Kingdom and Europe, the integration of Freightliner is progressing well. Although U.K. coal shipments are expected to remain relatively low into the fourth quarter due to a combination of seasonal electricity consumption patterns and the gradual reduction of high coal stockpiles that preceded the new U.K. carbon tax, we are pleased with the overall trajectory and management of the business.”
“In the second half of 2015, we expect somewhat better financial results based on modest improvements in North American carloads, seasonal improvements in the U.K./Europe business including intermodal shipments, as well as a sharp focus on additional cost reductions. Meanwhile, we continue to generate strong free cash flow and to evaluate a range of acquisition and investment opportunities worldwide.” (1)
Financial Results
G&W reported net income in the second quarter of 2015 of $52.8 million, compared with net income of $60.7 million in the second quarter of 2014. Excluding the net impact of certain items affecting comparability between periods discussed below, G&W’s adjusted net income in the second quarter of 2015 was $53.0 million, compared with adjusted net income of $63.7 million in the second quarter of 2014. (1)
G&W’s reported diluted EPS in the second quarter of 2015 were $0.92 with 57.1 million weighted average shares outstanding, compared with reported diluted EPS in the second quarter of 2014 of $1.07 with 56.9 million weighted average shares outstanding. G&W’s adjusted diluted EPS in the second quarter of 2015 were $0.93 with 57.1 million weighted average shares outstanding, compared with adjusted diluted EPS in the second quarter of 2014 of $1.12 with 56.9 million weighted average shares outstanding. (1)
G&W’s effective income tax rate was 35.7% in the second quarter of 2015, compared with 34.9% in the second quarter of 2014.
Items Affecting Comparability
In the second quarter of 2015 and 2014, G&W’s results included certain items affecting comparability between the periods that are set forth in the following table (in millions, except per share amounts):
Income/(Loss) | After-Tax Net | Diluted | |||||||||||||||
Three Months Ended June 30, 2015 | |||||||||||||||||
Business development and related costs | $ | (0.8 | ) | $ | (0.5 | ) | $ | (0.01 | ) | ||||||||
Net gain on sale of assets | $ | 0.5 | $ | 0.3 | $ | 0.01 | |||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||
Credit facility refinancing-related costs | $ | (4.7 | ) | $ | (2.9 | ) | $ | (0.05 | ) | ||||||||
Business development and related costs | $ | (1.7 | ) | $ | (1.0 | ) | $ | (0.02 | ) | ||||||||
Net gain on sale of assets | $ | 1.4 | $ | 1.0 | $ | 0.02 | |||||||||||
In the second quarter of 2015, G&W’s results included business development and related costs of $0.8 million primarily related to the integration of Freightliner Group Limited (Freightliner) and a net gain on the sale of assets of $0.5 million. G&W’s second quarter of 2014 results included credit facility refinancing-related costs of $4.7 million, business development and related costs of $1.7 million and a net gain on the sale of assets of $1.4 million.
Second Quarter Results
In the second quarter of 2015, G&W’s operating revenues increased $127.7 million, or 30.8%, to $542.2 million, compared with $414.6 million in the second quarter of 2014. Excluding $186.2 million of revenues from new operations, including Freightliner, Rapid City, Pierre & Eastern Railroad, Inc. (RCP&E) and Pinsly’s Arkansas Division (Pinsly Arkansas), and an $18.3 million decrease due to the depreciation of foreign currencies relative to the U.S. dollar, G&W’s same railroad operating revenues decreased $40.3 million, or 10.2%. The decrease in G&W’s same railroad operating revenues was primarily driven by a decrease in freight revenues.
In the second quarter of 2015, G&W’s same railroad freight revenues decreased $51.8 million, or 16.4%, to $265.0 million, compared with $316.8 million in the second quarter of 2014. Excluding a $13.0 million decrease due to the depreciation of foreign currencies relative to the U.S. dollar, G&W’s same railroad freight revenues decreased $38.8 million, or 12.8%, primarily driven by decreases in iron ore, coal and metals traffic.
G&W’s traffic increased 241,256 carloads, or 47.3%, to 750,887 carloads in the second quarter of 2015. Excluding 304,177 carloads from new operations, same railroad traffic decreased 62,921 carloads, or 12.3%, in the second quarter of 2015 compared with the second quarter of 2014. The same railroad traffic decrease was principally due to decreases of 25,969 carloads of coal and coke (primarily in the Midwest, Central and Ohio Valley regions), 14,051 carloads of metals traffic (primarily in the Southern, Northeast and Ohio Valley regions), 6,786 carloads of Other traffic (primarily overhead Class I shipments), 6,642 carloads of metallic ores (primarily in the Australia Region) and 6,585 carloads of agricultural products traffic (primarily in the Midwest, Ohio Valley and Canada regions). All remaining traffic decreased by a net 2,888 carloads.
G&W’s income from operations in the second quarter of 2015 was $99.5 million, compared with $110.1 million in the second quarter of 2014. G&W’s operating ratio in the second quarter of 2015 was 81.7%, compared with an operating ratio of 73.4% in the second quarter of 2014. The increase in G&W’s operating ratio was primarily driven by lower operating margins from Freightliner as well as the decrease in iron ore and coal traffic.
Second Quarter Results by Segment
Prior to April 1, 2015, G&W presented its financial information as two reportable segments: North American & European Operations and Australian Operations. Based on G&W’s significant increase in operations in the U.K. and continental Europe resulting from the acquisition of Freightliner, the Company is now breaking out its North American & European Operations into North American Operations and U.K./European Operations and will now present its financial information as three reportable segments: North American Operations, Australian Operations and U.K./European Operations, based on the geographic regions in which the Company operates. G&W’s segment information for prior periods has been restated to reflect this change.
Operating revenues from North American Operations decreased $14.8 million, or 4.5%, to $311.0 million in the second quarter of 2015, compared with $325.7 million in the second quarter of 2014. Excluding $15.2 million of revenues from new operations and a $3.4 million decrease due to the impact of foreign currency depreciation, North American Operations same railroad revenues decreased by $26.6 million, or 8.2%, primarily due to declines in utility coal and steel shipments.
North American Operations traffic decreased 37,605 carloads, or 8.3%, to 413,888 carloads in the second quarter of 2015. Excluding 19,282 carloads from new operations, same railroad traffic decreased 56,887 carloads, or 12.6%, in the second quarter of 2015 compared with the second quarter of 2014. The same railroad traffic decrease was principally due to decreases of 25,969 carloads of coal and coke (primarily in the Midwest, Central and Ohio Valley regions), 14,051 carloads of metals traffic (primarily in the Southern, Northeast and Ohio Valley regions), 8,396 carloads of Other traffic (primarily overhead Class I shipments) and 5,727 carloads of agricultural products traffic (primarily in the Midwest, Ohio Valley and Canada regions). All remaining traffic decreased by a net 2,744 carloads.
Income from operations from North American Operations in the second quarter of 2015 was $76.6 million, compared with $85.4 million in the second quarter of 2014. North American Operations operating ratio was 75.4% in the second quarter of 2015, compared with an operating ratio of 73.8% in the second quarter of 2014.
Australian Operations operating revenues in the second quarter of 2015 decreased $16.3 million, or 19.6%, to $66.8 million, compared with $83.1 million in the second quarter of 2014. Excluding $11.6 million of revenues from the newly acquired Freightliner Australian operations and a $13.8 million decrease due to the impact of foreign currency depreciation, Australian Operations same railroad revenues decreased by $14.1 million, or 20.4%, primarily due to a decrease in freight revenues resulting from a decline in iron ore shipments.
Australian Operations traffic decreased 6,034 carloads, or 10.4%, to 52,104 carloads in the second quarter of 2015. The traffic decrease was principally due to a decrease of 7,416 carloads of metallic ores traffic, partially offset by a 2,542 carload increase in minerals and stone traffic. All remaining traffic decreased by a net 1,160 carloads.
Income from operations from Australian Operations in the second quarter of 2015 was $15.1 million, compared with $25.3 million in the second quarter of 2014. Australian Operations operating ratio was 77.4% in the second quarter of 2015, compared with an operating ratio of 69.5% in the second quarter of 2014. The increase in Australian Operations operating ratio was primarily driven by the decrease in iron ore traffic.
U.K./European Operations operating revenues in the second quarter of 2015 increased $158.7 million to $164.4 million, compared with $5.7 million in the second quarter of 2014. Excluding $159.4 million of revenues from the newly acquired Freightliner U.K./European operations and a $1.1 million decrease due to the impact of foreign currency depreciation, U.K./European Operations same railroad revenues increased by $0.4 million, or 8.4%. U.K./European Operations traffic consisted of 284,895 carloads in the second quarter of 2015, primarily related to intermodal traffic from G&W’s newly acquired Freightliner U.K./European operations.
Income from operations from U.K./European Operations in the second quarter of 2015 was $7.7 million with an operating ration of 95.3%. The prior year was not comparable because over 95% of the revenue and income from operations was generated from the recently acquired Freightliner business. As a reminder, our U.K./European Operations require substantially lower capital expenditures and generate at a higher operating ratio than our other segments. The loss in the second quarter of 2014 included costs associated with the start-up of a significant new long-term customer contract.
Free Cash Flow (1)
G&W’s free cash flow for the six months ended June 30, 2015 and 2014 was as follows (in millions):
Six Months Ended | ||||||||||||
June 30, | ||||||||||||
2015 | 2014 | |||||||||||
Net cash provided by operating activities | $ | 184.7 | $ | 200.1 | ||||||||
Net cash used in investing activities, excluding new business investments | (842.7 | ) | (302.3 | ) | ||||||||
Add back: net cash used for acquisitions (a) | 776.3 | 220.5 | ||||||||||
Free cash flow before new business investments | 118.3 | 118.3 | ||||||||||
New business investments | (37.0 | ) | (61.0 | ) | ||||||||
Free cash flow (1) | $ | 81.3 | $ | 57.3 | ||||||||
(a) | The 2015 period primarily consisted of net cash used for the acquisition of Freightliner and Pinsly Arkansas as well as $30.9 million in cash paid for incremental expenses related to the purchase and integration of the acquisition. The 2014 period primarily consisted of net cash used for the RCP&E acquisition. | |
Conference Call and Webcast Details
As previously announced, G&W’s conference call to discuss financial results for the second quarter of 2015 will be held on Monday, August 3, 2015, at 11 a.m. EDT. The dial-in number for the teleconference in the U.S. is (800) 230-1096; outside the U.S. is (612) 332-0802, or the call may be accessed live over the Internet (listen only) at www.gwrr.com/investors. Management will be referring to a slide presentation that will also be available at gwrr.com/investors. The webcast will be archived at www.gwrr.com/investors until the following quarter’s earnings press release. Telephone replay is available for 30 days beginning at 1 p.m. EDT on August 3, 2015, by dialing (800) 475-6701 (or outside the U.S., dial 320-365-3844). The access code is 345265.
About G&W
G&W owns or leases 120 freight railroads worldwide that are organized in 11 operating regions with 7,700 employees and more than 2,500 customers.
- G&W’s nine North American regions serve 41 U.S. states and four Canadian provinces and include 113 short line and regional freight railroads with more than 13,000 track-miles.
- G&W’s Australia Region provides rail freight services in New South Wales, the Northern Territory and South Australia and operates the 1,400-mile Tarcoola-to-Darwin rail line.
- G&W’s U.K./European Region is led by Freightliner, the U.K.’s largest rail maritime intermodal operator and second-largest rail freight company. Operations also include heavy-haul in Poland and Germany and cross-border intermodal services connecting Northern European seaports with key industrial regions throughout the continent.
G&W subsidiaries provide rail service at more than 40 major ports in North America, Australia 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,” “could,” “should,” “seeks,” “expects,” “will,” “estimates,” “trends,” “outlook,” 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 that are difficult to forecast, including the following: risks related to the operation of our railroads; severe weather conditions and other natural occurrences, which could result in shutdowns, derailments, railroad network congestion or other substantial disruption of operations; customer demand and changes in our operations; exposure to the credit risk of customers and counterparties; changes in commodity prices; consummation and integration of acquisitions; economic, political and industry conditions (including employee strikes or work stoppages); 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, including our ability to obtain government funding for capital projects; international complexities of operations, currency fluctuations, finance, tax and decentralized management; challenges of managing rapid growth including retention and development of senior leadership; unpredictability of fuel costs; susceptibility to various legal claims and lawsuits; increase in, or volatility associated with, expenses related to estimated claims, self-insured retention amounts, and insurance coverage limits; consummation of new business opportunities; decrease in revenues and/or increase in costs and expenses; susceptibility to the risks of doing business in foreign countries; our ability to realize the expected synergies associated with acquisitions; and others including, but not limited to, those noted in our 2014 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. G&W does not undertake, and expressly disclaims, any duty to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
1. | Adjusted income from operations, adjusted net income, adjusted diluted earnings per common share (EPS) and free cash flow are non-GAAP financial measures and are not intended to replace financial measures calculated in accordance with GAAP. 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 their most directly comparable financial measures calculated in accordance with GAAP, is included in the tables attached to this press release. | |
GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2015 AND 2014 | ||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||
(unaudited) | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, | June 30, | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
OPERATING REVENUES | $ | 542,219 | $ | 414,563 | $ | 939,249 | $ | 790,842 | ||||||||||
OPERATING EXPENSES | 442,768 | 304,454 | 767,178 | 605,858 | ||||||||||||||
INCOME FROM OPERATIONS | 99,451 | 110,109 | 172,071 | 184,984 | ||||||||||||||
INTEREST INCOME | 124 | 241 | 150 | 1,275 | ||||||||||||||
INTEREST EXPENSE | (17,772 | ) | (17,814 | ) | (31,280 | ) | (31,455 | ) | ||||||||||
LOSS ON SETTLEMENT OF FOREIGN CURRENCY FORWARD PURCHASE CONTRACTS | — | — | (18,686 | ) | — | |||||||||||||
OTHER INCOME, NET | 334 | 759 | 648 | 1,395 | ||||||||||||||
INCOME BEFORE INCOME TAXES | 82,137 | 93,295 | 122,903 | 156,199 | ||||||||||||||
PROVISION FOR INCOME TAXES | (29,300 | ) | (32,567 | ) | (46,162 | ) | (55,467 | ) | ||||||||||
NET INCOME | $ | 52,837 | $ | 60,728 | $ | 76,741 | $ | 100,732 | ||||||||||
BASIC EARNINGS PER COMMON SHARE | $ | 0.94 | $ | 1.10 | $ | 1.37 | $ | 1.83 | ||||||||||
WEIGHTED AVERAGE SHARES - BASIC | 55,976 | 55,054 | 55,902 | 54,949 | ||||||||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | 0.92 | $ | 1.07 | $ | 1.34 | $ | 1.77 | ||||||||||
WEIGHTED AVERAGE SHARES - DILUTED | 57,143 | 56,948 | 57,132 | 56,910 | ||||||||||||||
GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||
AS OF JUNE 30, 2015 AND DECEMBER 31, 2014 | ||||||||||||
(in thousands) | ||||||||||||
(unaudited) | ||||||||||||
June 30, | December 31, | |||||||||||
2015 | 2014 | |||||||||||
ASSETS | ||||||||||||
CURRENT ASSETS: | ||||||||||||
Cash and cash equivalents | $ | 30,337 | $ | 59,727 | ||||||||
Accounts receivable, net | 386,059 | 357,278 | ||||||||||
Materials and supplies | 44,936 | 30,251 | ||||||||||
Prepaid expenses and other | 43,448 | 24,176 | ||||||||||
Deferred income tax assets, net | 51,942 | 76,994 | ||||||||||
Total current assets | 556,722 | 548,426 | ||||||||||
PROPERTY AND EQUIPMENT, net | 4,104,092 | 3,788,482 | ||||||||||
GOODWILL | 964,882 | 628,815 | ||||||||||
INTANGIBLE ASSETS, net | 1,137,170 | 587,663 | ||||||||||
DEFERRED INCOME TAX ASSETS, net | 2,182 | 2,500 | ||||||||||
OTHER ASSETS, net | 41,318 | 39,867 | ||||||||||
Total assets | $ | 6,806,366 | $ | 5,595,753 | ||||||||
LIABILITIES AND EQUITY | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Current portion of long-term debt | $ | 25,507 | $ | 67,398 | ||||||||
Accounts payable | 317,554 | 290,746 | ||||||||||
Accrued expenses | 143,462 | 106,094 | ||||||||||
Total current liabilities | 486,523 | 464,238 | ||||||||||
LONG-TERM DEBT, less current portion | 2,341,778 | 1,548,051 | ||||||||||
DEFERRED INCOME TAX LIABILITIES, net | 1,086,808 | 908,852 | ||||||||||
DEFERRED ITEMS - grants from outside parties | 281,732 | 279,286 | ||||||||||
OTHER LONG-TERM LIABILITIES | 177,235 | 37,346 | ||||||||||
TOTAL EQUITY | 2,432,290 | 2,357,980 | ||||||||||
Total liabilities and equity | $ | 6,806,366 | $ | 5,595,753 | ||||||||
GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
FOR THE SIX MONTHS ENDED JUNE 30, 2015 AND 2014 | ||||||||||
(in thousands) | ||||||||||
(unaudited) | ||||||||||
Six Months Ended | ||||||||||
June 30, | ||||||||||
2015 | 2014 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
Net income | $ | 76,741 | $ | 100,732 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 90,265 | 75,853 | ||||||||
Stock-based compensation | 6,961 | 6,011 | ||||||||
Excess tax benefits from share-based compensation | (1,254 | ) | (4,182 | ) | ||||||
Deferred income taxes | 22,672 | 36,453 | ||||||||
Net gain on sale of assets | (807 | ) | (2,207 | ) | ||||||
Loss on settlement of foreign currency forward purchase contracts | 18,686 | — | ||||||||
Changes in assets and liabilities which provided/(used) cash, net of effect of acquisitions: | ||||||||||
Accounts receivable, net | 35,744 | (26,616 | ) | |||||||
Materials and supplies | (868 | ) | (1,288 | ) | ||||||
Prepaid expenses and other | 5,685 | 7,620 | ||||||||
Accounts payable and accrued expenses | (73,397 | ) | 6,454 | |||||||
Other assets and liabilities, net | 4,255 | 1,233 | ||||||||
Net cash provided by operating activities | 184,683 | 200,063 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
Purchase of property and equipment | (160,226 | ) | (174,921 | ) | ||||||
Grant proceeds from outside parties | 22,701 | 27,644 | ||||||||
Cash paid for acquisitions, net of cash acquired | (726,698 | ) | (220,542 | ) | ||||||
Net payment from settlement of foreign currency forward purchase contracts related to an acquisition | (18,686 | ) | — | |||||||
Insurance proceeds for the replacement of assets | 1,421 | 1,172 | ||||||||
Proceeds from disposition of property and equipment | 1,734 | 3,365 | ||||||||
Net cash used in investing activities | (879,754 | ) | (363,282 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Principal payments on long-term borrowings, including capital leases | (306,799 | ) | (187,945 | ) | ||||||
Proceeds from issuance of long-term debt | 977,867 | 318,171 | ||||||||
Debt amendment/issuance costs | (5,933 | ) | (3,880 | ) | ||||||
Proceeds from employee stock purchases | 4,183 | 6,928 | ||||||||
Excess tax benefits from share-based compensation | 1,254 | 4,182 | ||||||||
Treasury stock acquisitions | (2,992 | ) | (3,526 | ) | ||||||
Net cash provided by financing activities | 667,580 | 133,930 | ||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (1,899 | ) | (555 | ) | ||||||
DECREASE IN CASH AND CASH EQUIVALENTS | (29,390 | ) | (29,844 | ) | ||||||
CASH AND CASH EQUIVALENTS, beginning of period | 59,727 | 62,876 | ||||||||
CASH AND CASH EQUIVALENTS, end of period | $ | 30,337 | $ | 33,032 | ||||||
GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||||||||
SELECTED CONSOLIDATED FINANCIAL INFORMATION | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Amount | % of Revenue | Amount | % of Revenue | |||||||||||||
Operating revenues: | ||||||||||||||||
Freight revenues | $ | 375,666 | 69.3 | % | $ | 316,750 | 76.4 | % | ||||||||
Freight-related revenues | 142,843 | 26.3 | % | 73,371 | 17.7 | % | ||||||||||
All other revenues | 23,710 | 4.4 | % | 24,442 | 5.9 | % | ||||||||||
Total operating revenues | $ | 542,219 | 100.0 | % | $ | 414,563 | 100.0 | % | ||||||||
Operating expenses: | ||||||||||||||||
Labor and benefits | $ | 165,296 | 30.4 | % | $ | 115,871 | 27.9 | % | ||||||||
Equipment rents | 43,483 | 8.0 | % | 19,857 | 4.8 | % | ||||||||||
Purchased services | 56,177 | 10.4 | % | 24,257 | 5.8 | % | ||||||||||
Depreciation and amortization | 48,048 | 8.9 | % | 38,212 | 9.2 | % | ||||||||||
Diesel fuel used in train operations | 37,895 | 7.0 | % | 37,379 | 9.0 | % | ||||||||||
Electricity used in train operations | 4,977 | 0.9 | % | 404 | 0.1 | % | ||||||||||
Casualties and insurance | 10,038 | 1.9 | % | 12,737 | 3.1 | % | ||||||||||
Materials | 26,929 | 5.0 | % | 19,221 | 4.6 | % | ||||||||||
Trackage rights | 22,172 | 4.1 | % | 14,021 | 3.4 | % | ||||||||||
Net gain on sale of assets | (490 | ) | (0.1 | )% | (1,369 | ) | (0.3 | )% | ||||||||
Other expenses | 28,243 | 5.2 | % | 23,864 | 5.8 | % | ||||||||||
Total operating expenses | $ | 442,768 | 81.7 | % | $ | 304,454 | 73.4 | % | ||||||||
GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||
SELECTED CONSOLIDATED FINANCIAL INFORMATION | ||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2015 | North American | Australian | U.K./European | Total | ||||||||||||||||||||||||
Amount | % of | Amount | % of | Amount | % of | Amount | % of | |||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||
Freight revenues | $ | 238,153 | 76.6 | % | $ | 39,464 | 59.1 | % | $ | 98,049 | 59.6 | % | $ | 375,666 | 69.3 | % | ||||||||||||
Freight-related revenues | 55,989 | 18.0 | % | 25,881 | 38.7 | % | 60,973 | 37.1 | % | 142,843 | 26.3 | % | ||||||||||||||||
All other revenues | 16,838 | 5.4 | % | 1,463 | 2.2 | % | 5,409 | 3.3 | % | 23,710 | 4.4 | % | ||||||||||||||||
Total operating revenues | $ | 310,980 | 100.0 | % | $ | 66,808 | 100.0 | % | $ | 164,431 | 100.0 | % | $ | 542,219 | 100.0 | % | ||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Labor and benefits | $ | 100,297 | 32.3 | % | $ | 18,750 | 28.0 | % | $ | 46,249 | 28.1 | % | $ | 165,296 | 30.4 | % | ||||||||||||
Equipment rents | 16,485 | 5.3 | % | 4,020 | 6.0 | % | 22,978 | 14.0 | % | 43,483 | 8.0 | % | ||||||||||||||||
Purchased services | 15,220 | 4.9 | % | 5,718 | 8.6 | % | 35,239 | 21.4 | % | 56,177 | 10.4 | % | ||||||||||||||||
Depreciation and amortization | 34,936 | 11.2 | % | 7,394 | 11.1 | % | 5,718 | 3.5 | % | 48,048 | 8.9 | % | ||||||||||||||||
Diesel fuel used in train operations | 19,757 | 6.4 | % | 6,218 | 9.3 | % | 11,920 | 7.2 | % | 37,895 | 7.0 | % | ||||||||||||||||
Electricity used in train operations | — | — | % | — | — | % | 4,977 | 3.0 | % | 4,977 | 0.9 | % | ||||||||||||||||
Casualties and insurance | 6,659 | 2.1 | % | 1,886 | 2.8 | % | 1,493 | 0.9 | % | 10,038 | 1.9 | % | ||||||||||||||||
Materials | 15,675 | 5.0 | % | 2,709 | 4.1 | % | 8,545 | 5.2 | % | 26,929 | 5.0 | % | ||||||||||||||||
Trackage rights | 6,249 | 2.0 | % | 3,424 | 5.1 | % | 12,499 | 7.6 | % | 22,172 | 4.1 | % | ||||||||||||||||
Net gain on sale of assets | (402 | ) | (0.1 | )% | (32 | ) | — | % | (56 | ) | — | % | (490 | ) | (0.1 | )% | ||||||||||||
Other expenses | 19,483 | 6.3 | % | 1,590 | 2.4 | % | 7,170 | 4.4 | % | 28,243 | 5.2 | % | ||||||||||||||||
Total operating expenses | $ | 234,359 | 75.4 | % | $ | 51,677 | 77.4 | % | $ | 156,732 | 95.3 | % | $ | 442,768 | 81.7 | % | ||||||||||||
Income from operations | $ | 76,621 | $ | 15,131 | $ | 7,699 | $ | 99,451 | ||||||||||||||||||||
Net expenditures for additions to property & equipment | $ | 73,440 | $ | 9,159 | $ | 5,028 | $ | 87,627 | ||||||||||||||||||||
GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||
SELECTED CONSOLIDATED FINANCIAL INFORMATION | ||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | North American | Australian | U.K./European | Total | ||||||||||||||||||||||||
Amount | % of Revenue | Amount | % of Revenue | Amount | % of Revenue | Amount | % of Revenue | |||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||
Freight revenues | $ | 252,320 | 77.5 | % | $ | 64,430 | 77.5 | % | $ | — | — | % | $ | 316,750 | 76.4 | % | ||||||||||||
Freight-related revenues | 52,475 | 16.1 | % | 15,194 | 18.3 | % | 5,702 | 100.0 | % | 73,371 | 17.7 | % | ||||||||||||||||
All other revenues | 20,947 | 6.4 | % | 3,495 | 4.2 | % | — | — | % | 24,442 | 5.9 | % | ||||||||||||||||
Total operating revenues | $ | 325,742 | 100.0 | % | $ | 83,119 | 100.0 | % | $ | 5,702 | 100.0 | % | $ | 414,563 | 100.0 | % | ||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Labor and benefits | $ | 95,044 | 29.2 | % | $ | 18,882 | 22.7 | % | $ | 1,945 | 34.1 | % | $ | 115,871 | 27.9 | % | ||||||||||||
Equipment rents | 16,413 | 5.0 | % | 2,718 | 3.2 | % | 726 | 12.7 | % | 19,857 | 4.8 | % | ||||||||||||||||
Purchased services | 15,429 | 4.7 | % | 7,959 | 9.6 | % | 869 | 15.2 | % | 24,257 | 5.8 | % | ||||||||||||||||
Depreciation and amortization | 30,629 | 9.4 | % | 7,172 | 8.6 | % | 411 | 7.2 | % | 38,212 | 9.2 | % | ||||||||||||||||
Diesel fuel used in train operations | 29,302 | 9.0 | % | 7,523 | 9.1 | % | 554 | 9.7 | % | 37,379 | 9.0 | % | ||||||||||||||||
Electricity used in train operations | — | — | % | — | — | % |
| 404 | 7.1 | % | 404 | 0.1 | % | |||||||||||||||
Casualties and insurance | 10,413 | 3.2 | % | 2,240 | 2.7 | % | 84 | 1.5 | % | 12,737 | 3.1 | % | ||||||||||||||||
Materials | 17,508 | 5.4 | % | 1,463 | 1.8 | % | 250 | 4.4 | % | 19,221 | 4.6 | % | ||||||||||||||||
Trackage rights | 7,759 | 2.4 | % | 5,449 | 6.6 | % | 813 | 14.3 | % | 14,021 | 3.4 | % | ||||||||||||||||
Net gain on sale of assets | (1,292 | ) | (0.4 | )% | (44 | ) | (0.1 | )% | (33 | ) | (0.6 | )% | (1,369 | ) | (0.3 | )% | ||||||||||||
Other expenses | 19,150 | 5.9 | % | 4,426 | 5.3 | % | 288 | 5.1 | % | 23,864 | 5.8 | % | ||||||||||||||||
Total operating expenses | $ | 240,355 | 73.8 | % | $ | 57,788 | 69.5 | % | $ | 6,311 | 110.7 | % | $ | 304,454 | 73.4 | % | ||||||||||||
Income/(loss) from operations | $ | 85,387 | $ | 25,331 | $ | (609 | ) | $ | 110,109 | |||||||||||||||||||
Net expenditures for additions to property & equipment | $ | 85,315 | $ | 3,047 | $ | 97 | $ | 88,459 | ||||||||||||||||||||
GENESEE & WYOMING INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||
FREIGHT REVENUES, CARLOADS AND AVERAGE REVENUES PER CARLOAD | |||||||||||||||||||||||||||||||||||||||||||
COMPARISON BY COMMODITY GROUP | |||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands, except average revenues per carload) | |||||||||||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2015 | North American Operations | Australian Operations | U.K./European Operations | Total Operations | |||||||||||||||||||||||||||||||||||||||
Commodity Group | Freight | Carloads* | Average | Freight | Carloads* | Average | Freight | Carloads* | Average | Freight | Carloads* | Average | |||||||||||||||||||||||||||||||
Agricultural Products | $ | 30,742 | 53,690 | $ | 573 | $ | 6,658 | 14,816 | $ | 449 | $ | 129 | 190 | $ | 679 | $ | 37,529 | 68,696 | $ | 546 | |||||||||||||||||||||||
Autos & Auto Parts | 4,749 | 7,450 | 637 | — | — | — | — | — | — | 4,749 | 7,450 | 637 | |||||||||||||||||||||||||||||||
Chemicals & Plastics | 35,354 | 45,637 | 775 | — | — | — | — | — | — | 35,354 | 45,637 | 775 | |||||||||||||||||||||||||||||||
Coal & Coke | 22,136 | 63,445 | 349 | — | — | — | 9,039 | 23,380 | 387 | 31,175 | 86,825 | 359 | |||||||||||||||||||||||||||||||
Food & Kindred Products | 8,280 | 14,726 | 562 | — | — | — | — | — | — | 8,280 | 14,726 | 562 | |||||||||||||||||||||||||||||||
Intermodal | — | — | — | 18,917 | 15,657 | 1,208 | 69,999 | 214,227 | 327 | 88,916 | 229,884 | 387 | |||||||||||||||||||||||||||||||
Lumber & Forest Products | 20,496 | 34,966 | 586 | — | — | — | — | — | — | 20,496 | 34,966 | 586 | |||||||||||||||||||||||||||||||
Metallic Ores | 4,910 | 6,114 | 803 | 11,865 | 7,137 | 1,662 | — | — | — | 16,775 | 13,251 | 1,266 | |||||||||||||||||||||||||||||||
Metals | 27,015 | 35,136 | 769 | — | — | — | — | — | — | 27,015 | 35,136 | 769 | |||||||||||||||||||||||||||||||
Minerals & Stone | 30,653 | 55,872 | 549 | 1,716 | 14,424 | 119 | 17,435 | 44,083 | 396 | 49,804 | 114,379 | 435 | |||||||||||||||||||||||||||||||
Petroleum Products | 15,194 | 23,855 | 637 | 308 | 70 | 4,400 | — | — | — | 15,502 | 23,925 | 648 | |||||||||||||||||||||||||||||||
Pulp & Paper | 28,952 | 45,302 | 639 | — | — | — | — | — | — | 28,952 | 45,302 | 639 | |||||||||||||||||||||||||||||||
Waste | 4,709 | 10,224 | 461 | — | — | — | — | — | — | 4,709 | 10,224 | 461 | |||||||||||||||||||||||||||||||
Other | 4,963 | 17,471 | 284 | — | — | — | 1,447 | 3,015 | 480 | 6,410 | 20,486 | 313 | |||||||||||||||||||||||||||||||
Totals | $ | 238,153 | 413,888 | $ | 575 | $ | 39,464 | 52,104 | $ | 757 | $ | 98,049 | 284,895 | $ | 344 | $ | 375,666 | 750,887 | $ | 500 | |||||||||||||||||||||||
Three Months Ended June 30, 2014 | North American Operations | Australian Operations | U.K./European Operations | Total Operations | |||||||||||||||||||||||||||||||||||||||
Commodity Group | Freight | Carloads* | Average | Freight | Carloads* | Average | Freight | Carloads* | Average | Freight | Carloads* | Average | |||||||||||||||||||||||||||||||
Agricultural Products | $ | 28,699 | 53,312 | $ | 538 | $ | 9,403 | 15,674 | $ | 600 | $ | — | — | $ | — | $ | 38,102 | 68,986 | $ | 552 | |||||||||||||||||||||||
Autos & Auto Parts | 5,889 | 7,969 | 739 | — | — | — | — | — | — | 5,889 | 7,969 | 739 | |||||||||||||||||||||||||||||||
Chemicals & Plastics | 34,393 | 42,443 | 810 | — | — | — | — | — | — | 34,393 | 42,443 | 810 | |||||||||||||||||||||||||||||||
Coal & Coke | 31,887 | 89,401 | 357 | — | — | — | — | — | — | 31,887 | 89,401 | 357 | |||||||||||||||||||||||||||||||
Food & Kindred Products | 8,981 | 15,463 | 581 | — | — | — | — | — | — | 8,981 | 15,463 | 581 | |||||||||||||||||||||||||||||||
Intermodal | — | — | — | 24,138 | 15,953 | 1,513 | — | — | — | 24,138 | 15,953 | 1,513 | |||||||||||||||||||||||||||||||
Lumber & Forest Products | 21,313 | 35,296 | 604 | — | — | — | — | — | — | 21,313 | 35,296 | 604 | |||||||||||||||||||||||||||||||
Metallic Ores | 4,302 | 5,287 | 814 | 28,418 | 14,553 | 1,953 | — | — | — | 32,720 | 19,840 | 1,649 | |||||||||||||||||||||||||||||||
Metals | 34,445 | 48,484 | 710 | — | — | — | — | — | — | 34,445 | 48,484 | 710 | |||||||||||||||||||||||||||||||
Minerals & Stone | 28,117 | 50,584 | 556 | 2,078 | 11,882 | 175 | — | — | — | 30,195 | 62,466 | 483 | |||||||||||||||||||||||||||||||
Petroleum Products | 15,353 | 24,912 | 616 | 393 | 76 | 5,171 | — | — | — | 15,746 | 24,988 | 630 | |||||||||||||||||||||||||||||||
Pulp & Paper | 29,144 | 42,916 | 679 | — | — | — | — | — | — | 29,144 | 42,916 | 679 | |||||||||||||||||||||||||||||||
Waste | 4,069 | 9,633 | 422 | — | — | — | — | — | — | 4,069 | 9,633 | 422 | |||||||||||||||||||||||||||||||
Other | 5,728 | 25,793 | 222 | — | — | — | — | — | — | 5,728 | 25,793 | 222 | |||||||||||||||||||||||||||||||
Totals | $ | 252,320 | 451,493 | $ | 559 | $ | 64,430 | 58,138 | $ | 1,108 | $ | — | — | $ | — | $ | 316,750 | 509,631 | $ | 622 |
* Represents physical railcars and the estimated railcar equivalents of commodities transported by metric ton or other measure, as well as intermodal units.
GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||||||||||
SELECTED CONSOLIDATED FINANCIAL INFORMATION | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||
(unaudited) | ||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||
2015 | 2014 | |||||||||||||||||
Amount | % of | Amount | % of | |||||||||||||||
Operating revenues: | ||||||||||||||||||
Freight revenues | $ | 673,875 | 71.7 | % | $ | 604,484 | 76.4 | % | ||||||||||
Freight-related revenues | 222,524 | 23.7 | % | 140,664 | 17.8 | % | ||||||||||||
All other revenues | 42,850 | 4.6 | % | 45,694 | 5.8 | % | ||||||||||||
Total operating revenues | $ | 939,249 | 100.0 | % | $ | 790,842 | 100.0 | % | ||||||||||
Operating expenses: | ||||||||||||||||||
Labor and benefits | $ | 297,414 | 31.6 | % | $ | 232,027 | 29.4 | % | ||||||||||
Equipment rents | 65,515 | 6.9 | % | 38,932 | 4.9 | % | ||||||||||||
Purchased services | 80,558 | 8.6 | % | 52,396 | 6.6 | % | ||||||||||||
Depreciation and amortization | 90,265 | 9.6 | % | 75,853 | 9.6 | % | ||||||||||||
Diesel fuel used in train operations | 67,592 | 7.2 | % | 79,314 | 10.0 | % | ||||||||||||
Electricity used in train operations | 5,366 | 0.6 | % | 472 | 0.1 | % | ||||||||||||
Casualties and insurance | 18,561 | 2.0 | % | 22,369 | 2.8 | % | ||||||||||||
Materials | 45,624 | 4.9 | % | 35,515 | 4.5 | % | ||||||||||||
Trackage rights | 35,505 | 3.8 | % | 26,287 | 3.3 | % | ||||||||||||
Net gain on sale of assets | (807 | ) | (0.1 | )% | (2,207 | ) | (0.3 | )% | ||||||||||
Other expenses | 61,585 | 6.6 | % | 44,900 | 5.7 | % | ||||||||||||
Total operating expenses | $ | 767,178 | 81.7 | % | $ | 605,858 | 76.6 | % | ||||||||||
GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||
SELECTED CONSOLIDATED FINANCIAL INFORMATION | ||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||
Six Months Ended June 30, 2015 | North American | Australian | U.K./European | Total | ||||||||||||||||||||||||
Amount | % of | Amount | % of | Amount | % of | Amount | % of | |||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||
Freight revenues | $ | 481,183 | 76.5 | % | $ | 85,822 | 67.7 | % | $ | 106,870 | 58.1 | % | $ | 673,875 | 71.7 | % | ||||||||||||
Freight-related revenues | 114,323 | 18.2 | % | 37,072 | 29.3 | % | 71,129 | 38.7 | % | 222,524 | 23.7 | % | ||||||||||||||||
All other revenues | 33,098 | 5.3 | % | 3,856 | 3.0 | % | 5,896 | 3.2 | % | 42,850 | 4.6 | % | ||||||||||||||||
Total operating revenues | $ | 628,604 | 100.0 | % | $ | 126,750 | 100.0 | % | $ | 183,895 | 100.0 | % | $ | 939,249 | 100.0 | % | ||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Labor and benefits | $ | 209,748 | 33.3 | % | $ | 36,134 | 28.5 | % | $ | 51,532 | 27.9 | % | $ | 297,414 | 31.6 | % | ||||||||||||
Equipment rents | 34,271 | 5.4 | % | 6,206 | 4.9 | % | 25,038 | 13.6 | % | 65,515 | 6.9 | % | ||||||||||||||||
Purchased services | 29,349 | 4.7 | % | 10,758 | 8.5 | % | 40,451 | 22.0 | % | 80,558 | 8.6 | % | ||||||||||||||||
Depreciation and amortization | 70,241 | 11.2 | % | 13,620 | 10.7 | % | 6,404 | 3.5 | % | 90,265 | 9.6 | % | ||||||||||||||||
Diesel fuel used in train operations | 43,782 | 7.0 | % | 9,899 | 7.8 | % | 13,911 | 7.6 | % | 67,592 | 7.2 | % | ||||||||||||||||
Electricity used in train operations | — | — | % | — | — | % | 5,366 | 2.9 | % | 5,366 | 0.6 | % | ||||||||||||||||
Casualties and insurance | 13,114 | 2.1 | % | 3,767 | 3.0 | % | 1,680 | 0.9 | % | 18,561 | 2.0 | % | ||||||||||||||||
Materials | 31,685 | 5.0 | % | 4,934 | 3.9 | % | 9,005 | 4.9 | % | 45,624 | 4.9 | % | ||||||||||||||||
Trackage rights | 12,793 | 2.0 | % | 8,420 | 6.6 | % | 14,292 | 7.8 | % | 35,505 | 3.8 | % | ||||||||||||||||
Net gain on sale of assets | (699 | ) | (0.1 | )% | (38 | ) | — | % | (70 | ) | — | % | (807 | ) | (0.1 | )% | ||||||||||||
Other expenses | 50,618 | 8.1 | % | 3,683 | 2.9 | % | 7,284 | 4.0 | % | 61,585 | 6.6 | % | ||||||||||||||||
Total operating expenses | $ | 494,902 | 78.7 | % | $ | 97,383 | 76.8 | % | $ | 174,893 | 95.1 | % | $ | 767,178 | 81.7 | % | ||||||||||||
Income from operations | $ | 133,702 | $ | 29,367 | $ | 9,002 | $ | 172,071 | ||||||||||||||||||||
Net expenditures for additions to property & equipment | $ | 118,710 | $ | 13,774 | $ | 5,041 | $ | 137,525 | ||||||||||||||||||||
GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||
SELECTED CONSOLIDATED FINANCIAL INFORMATION | ||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | North American | Australian | U.K./European | Total | ||||||||||||||||||||||||
Amount | % of | Amount | % of | Amount | % of | Amount | % of | |||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||
Freight revenues | $ | 481,307 | 77.5 | % | $ | 123,177 | 77.3 | % | $ | — | — | % | $ | 604,484 | 76.4 | % | ||||||||||||
Freight-related revenues | 100,816 | 16.2 | % | 29,801 | 18.7 | % | 10,047 | 100.0 | % | 140,664 | 17.8 | % | ||||||||||||||||
All other revenues | 39,261 | 6.3 | % | 6,433 | 4.0 | % | — | — | % | 45,694 | 5.8 | % | ||||||||||||||||
Total operating revenues | $ | 621,384 | 100.0 | % | $ | 159,411 | 100.0 | % | $ | 10,047 | 100.0 | % | $ | 790,842 | 100.0 | % | ||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Labor and benefits | $ | 193,147 | 31.1 | % | $ | 35,017 | 22.0 | % | $ | 3,863 | 38.5 | % | $ | 232,027 | 29.4 | % | ||||||||||||
Equipment rents | 32,699 | 5.3 | % | 5,021 | 3.2 | % | 1,212 | 12.1 | % | 38,932 | 4.9 | % | ||||||||||||||||
Purchased services | 30,546 | 4.9 | % | 20,151 | 12.6 | % | 1,699 | 16.9 | % | 52,396 | 6.6 | % | ||||||||||||||||
Depreciation and amortization | 60,824 | 9.8 | % | 14,234 | 8.9 | % | 795 | 7.9 | % | 75,853 | 9.6 | % | ||||||||||||||||
Diesel fuel used in train operations | 63,645 | 10.2 | % | 14,724 | 9.2 | % | 945 | 9.4 | % | 79,314 | 10.0 | % | ||||||||||||||||
Electricity used in train operations | — | — | % | — | — | % | 472 | 4.7 | % | 472 | 0.1 | % | ||||||||||||||||
Casualties and insurance | 17,477 | 2.8 | % | 4,741 | 3.0 | % | 151 | 1.5 | % | 22,369 | 2.8 | % | ||||||||||||||||
Materials | 32,919 | 5.3 | % | 2,120 | 1.3 | % | 476 | 4.7 | % | 35,515 | 4.5 | % | ||||||||||||||||
Trackage rights | 14,135 | 2.3 | % | 10,958 | 6.9 | % | 1,194 | 11.9 | % | 26,287 | 3.3 | % | ||||||||||||||||
Net gain on sale of assets | (2,014 | ) | (0.3 | )% | (162 | ) | (0.1 | )% | (31 | ) | (0.3 | )% | (2,207 | ) | (0.3 | )% | ||||||||||||
Other expenses | 36,027 | 5.8 | % | 8,341 | 5.2 | % | 532 | 5.3 | % | 44,900 | 5.7 | % | ||||||||||||||||
Total operating expenses | $ | 479,405 | 77.2 | % | $ | 115,145 | 72.2 | % | $ | 11,308 | 112.6 | % | $ | 605,858 | 76.6 | % | ||||||||||||
Income/(loss) from operations | $ | 141,979 | $ | 44,266 | $ | (1,261 | ) | $ | 184,984 | |||||||||||||||||||
Net expenditures for additions to property & equipment | $ | 138,899 | $ | 7,880 | $ | 498 | $ | 147,277 | ||||||||||||||||||||
GENESEE & WYOMING INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||
FREIGHT REVENUES, CARLOADS AND AVERAGE REVENUES PER CARLOAD | |||||||||||||||||||||||||||||||||||||||||||
COMPARISON BY COMMODITY GROUP | |||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands, except average revenues per carload) | |||||||||||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2015 | North American Operations | Australian Operations | U.K./European Operations | Total Operations | |||||||||||||||||||||||||||||||||||||||
Commodity Group | Freight | Carloads* | Average | Freight | Carloads* | Average | Freight | Carloads* | Average | Freight | Carloads* | Average | |||||||||||||||||||||||||||||||
Agricultural Products | $ | 65,119 | 112,027 | $ | 581 | $ | 13,426 | 29,412 | $ | 456 | $ | 141 | 207 | $ | 681 | $ | 78,686 | 141,646 | $ | 556 | |||||||||||||||||||||||
Autos & Auto Parts | 9,373 | 14,673 | 639 | — | — | — | — | — | — | 9,373 | 14,673 | 639 | |||||||||||||||||||||||||||||||
Chemicals & Plastics | 71,239 | 91,680 | 777 | — | — | — | — | — | — | 71,239 | 91,680 | 777 | |||||||||||||||||||||||||||||||
Coal & Coke | 49,104 | 143,057 | 343 | — | — | — | 9,852 | 25,484 | 387 | 58,956 | 168,541 | 350 | |||||||||||||||||||||||||||||||
Food & Kindred Products | 17,523 | 30,614 | 572 | — | — | — | — | — | — | 17,523 | 30,614 | 572 | |||||||||||||||||||||||||||||||
Intermodal | — | — | — | 36,160 | 30,006 | 1,205 | 76,296 | 233,499 | 327 | 112,456 | 263,505 | 427 | |||||||||||||||||||||||||||||||
Lumber & Forest Products | 39,993 | 67,555 | 592 | — | — | — | — | — | — | 39,993 | 67,555 | 592 | |||||||||||||||||||||||||||||||
Metallic Ores | 10,121 | 12,479 | 811 | 31,980 | 17,883 | 1,788 | — | — | — | 42,101 | 30,362 | 1,387 | |||||||||||||||||||||||||||||||
Metals | 53,413 | 69,725 | 766 | — | — | — | — | — | — | 53,413 | 69,725 | 766 | |||||||||||||||||||||||||||||||
Minerals & Stone | 58,130 | 103,256 | 563 | 3,665 | 28,694 | 128 | 19,004 | 48,046 | 396 | 80,799 | 179,996 | 449 | |||||||||||||||||||||||||||||||
Petroleum Products | 33,052 | 50,912 | 649 | 591 | 133 | 4,444 | — | — | — | 33,643 | 51,045 | 659 | |||||||||||||||||||||||||||||||
Pulp & Paper | 56,374 | 88,067 | 640 | — | — | — | — | — | — | 56,374 | 88,067 | 640 | |||||||||||||||||||||||||||||||
Waste | 8,004 | 17,517 | 457 | — | — | — | — | — | — | 8,004 | 17,517 | 457 | |||||||||||||||||||||||||||||||
Other | 9,738 | 35,039 | 278 | — | — | — | 1,577 | 3,286 | 480 | 11,315 | 38,325 | 295 | |||||||||||||||||||||||||||||||
Totals | $ | 481,183 | 836,601 | $ | 575 | $ | 85,822 | 106,128 | $ | 809 | $ | 106,870 | 310,522 | $ | 344 | $ | 673,875 | 1,253,251 | $ | 538 | |||||||||||||||||||||||
Six Months Ended June 30, 2014 | North American Operations | Australian Operations | U.K./European Operations | Total Operations | |||||||||||||||||||||||||||||||||||||||
Commodity Group | Freight | Carloads* | Average | Freight | Carloads* | Average | Freight | Carloads* | Average | Freight | Carloads* | Average | |||||||||||||||||||||||||||||||
Agricultural Products | $ | 54,601 | 101,367 | $ | 539 | $ | 19,168 | 32,653 | $ | 587 | $ | — | — | $ | — | $ | 73,769 | 134,020 | $ | 550 | |||||||||||||||||||||||
Autos & Auto Parts | 11,347 | 15,705 | 723 | — | — | — | — | — | — | 11,347 | 15,705 | 723 | |||||||||||||||||||||||||||||||
Chemicals & Plastics | 67,142 | 82,715 | 812 | — | — | — | — | — | — | 67,142 | 82,715 | 812 | |||||||||||||||||||||||||||||||
Coal & Coke | 63,137 | 175,704 | 359 | — | — | — | — | — | — | 63,137 | 175,704 | 359 | |||||||||||||||||||||||||||||||
Food & Kindred Products | 17,042 | 29,310 | 581 | — | — | — | — | — | — | 17,042 | 29,310 | 581 | |||||||||||||||||||||||||||||||
Intermodal | — | — | — | 45,509 | 30,665 | 1,484 | — | — | — | 45,509 | 30,665 | 1,484 | |||||||||||||||||||||||||||||||
Lumber & Forest Products | 40,492 | 67,843 | 597 | — | — | — | — | — | — | 40,492 | 67,843 | 597 | |||||||||||||||||||||||||||||||
Metallic Ores | 8,796 | 10,866 | 809 | 53,597 | 27,848 | 1,925 | — | — | — | 62,393 | 38,714 | 1,612 | |||||||||||||||||||||||||||||||
Metals | 64,027 | 89,813 | 713 | — | — | — | — | — | — | 64,027 | 89,813 | 713 | |||||||||||||||||||||||||||||||
Minerals & Stone | 47,637 | 86,824 | 549 | 4,218 | 24,679 | 171 | — | — | — | 51,855 | 111,503 | 465 | |||||||||||||||||||||||||||||||
Petroleum Products | 31,647 | 52,688 | 601 | 685 | 135 | 5,074 | — | — | — | 32,332 | 52,823 | 612 | |||||||||||||||||||||||||||||||
Pulp & Paper | 56,806 | 85,127 | 667 | — | — | — | — | — | — | 56,806 | 85,127 | 667 | |||||||||||||||||||||||||||||||
Waste | 8,402 | 19,079 | 440 | — | — | — | — | — | — | 8,402 | 19,079 | 440 | |||||||||||||||||||||||||||||||
Other | 10,231 | 43,989 | 233 | — | — | — | — | — | — | 10,231 | 43,989 | 233 | |||||||||||||||||||||||||||||||
Totals | $ | 481,307 | 861,030 | $ | 559 | $ | 123,177 | 115,980 | $ | 1,062 | $ | — | — | $ | — | $ | 604,484 | 977,010 | $ | 619 |
* Represents physical railcars and the estimated railcar equivalents of commodities transported by metric ton or other measure, as well as intermodal units.
Non-GAAP Financial Measures
This earnings release contains references to adjusted income from operations, adjusted net income, adjusted diluted earnings per common share (EPS) and free cash flow, which are “non-GAAP financial measures” as this term is defined in 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. In accordance with these rules, G&W has reconciled these non-GAAP financial measures to their most directly comparable U.S. GAAP measures.
Management views these non-GAAP financial measures as important measures of G&W’s operating performance or, in the case of free cash flow, an important financial measure of how well G&W is managing its assets and a useful indicator of cash flow that may be available for discretionary use by G&W. Management also views these non-GAAP financial measures as a way to assess comparability between periods. Key limitations of the free cash flow measure include the assumptions that G&W 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.
These non-GAAP financial measures are not intended to represent, and should not be considered more meaningful than, or as an alternative to, their most directly comparable GAAP measures. These non-GAAP financial measures may be different from similarly-titled non-GAAP financial measures used by other companies.
The following tables set forth reconciliations of each of these non-GAAP financial measures to their most directly comparable GAAP measure (in millions, except percentages and per share amounts).
Reconciliations of Non-GAAP Financial Measures
Adjusted Income from Operations | |||||||||
Three Months Ended | |||||||||
June 30, | |||||||||
2015 | 2014 | ||||||||
Operating revenues | $ | 542.2 | $ | 414.6 | |||||
Operating expenses | 442.8 | 304.5 | |||||||
Income from operations (a) | $ | 99.5 | $ | 110.1 | |||||
Operating expenses | $ | 442.8 | $ | 304.5 | |||||
Business development and related costs | (0.8 | ) | (1.7 | ) | |||||
Net gain on sale of assets | 0.5 | 1.4 | |||||||
Adjusted operating expenses | $ | 442.5 | $ | 304.2 | |||||
Adjusted income from operations | $ | 99.8 | $ | 110.4 | |||||
(a) Income from operations is calculated as operating revenues less operating expenses. | |||||||||
Adjusted Net Income and Adjusted Diluted Earnings Per Common Share | |||||||||
Three Months Ended June 30, 2015 | Net Income | Diluted | |||||||
As reported | $ | 52.8 | $ | 0.92 | |||||
Add back certain items, net of tax: | |||||||||
Business development and related costs | 0.5 | 0.01 | |||||||
Net gain on sale of assets | (0.3 | ) | (0.01 | ) | |||||
As adjusted | $ | 53.0 | $ | 0.93 | |||||
Three Months Ended June 30, 2014 | Net Income | Diluted | |||||||
As reported | $ | 60.7 | $ | 1.07 | |||||
Add back certain items, net of tax: | |||||||||
Credit facility refinancing-related costs | 2.9 | 0.05 | |||||||
Business development and related costs | 1.0 | 0.02 | |||||||
Net gain on sale of assets | (1.0 | ) | (0.02 | ) | |||||
As adjusted | $ | 63.7 | $ | 1.12 | |||||
Free Cash Flow | |||||||||
Six Months Ended | |||||||||
June 30, | |||||||||
2015 | 2014 | ||||||||
Net cash provided by operating activities | $ | 184.7 | $ | 200.1 | |||||
Net cash used in investing activities | (879.8 | ) | (363.3 | ) | |||||
Net cash used for acquisitions | 776.3 | 220.5 | |||||||
Free cash flow | $ | 81.3 | $ | 57.3 | |||||
New business investments | 37.0 | 61.0 | |||||||
Free cash flow before new business investments | $ | 118.3 | $ | 118.3 |
CONTACT:
G&W Corporate Communications
Michael Williams, 1-203-202-8900
mwilliams@gwrr.com