Providence & Worcester Railroad (PWX) 10-Q 13 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	5-May-15
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	31-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Trading Symbol	PWX
Entity Registrant Name	PROVIDENCE & WORCESTER RAILROAD CO/RI/
Entity Central Index Key	831968
Current Fiscal Year End Date	-19
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		4,860,861

Condensed_Balance_Sheets_Unaud

Condensed Balance Sheets (Unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Current Assets:
Cash and cash equivalents	$6,687	$6,414
Accounts receivable, net of allowance for doubtful accounts of $160 in 2015 and 2014, respectively	4,761	5,007
Materials and supplies	1,057	1,067
Prepaid expenses and other current assets	294	634
Deferred income taxes	399	399
Total Current Assets	13,198	13,521
Property and Equipment, net	85,530	85,955
Land Held for Development	12,457	12,457
Total Assets	111,185	111,933
Current Liabilities:
Accounts payable	4,062	3,872
Current portion of deferred grant and other revenue	424	230
Accrued expenses	2,165	1,810
Total Current Liabilities	6,651	5,912
Deferred Income Taxes	13,176	13,623
Deferred Grant and Other Income	12,877	12,986
Shareholders' Equity:
Preferred stock, 10% noncumulative, $50 par value; authorized, issued and outstanding 640 shares in 2015 and 2014	32	32
Common stock, $.50 par value; authorized 15,000,000 shares; issued and outstanding 4,860,635 shares in 2015 and 4,859,871 shares in 2014	2,430	2,430
Additional paid-in capital	38,001	37,891
Retained earnings	38,018	39,059
Total Shareholders' Equity	78,481	79,412
Total Liabilities and Shareholders' Equity	$111,185	$111,933

Condensed_Balance_Sheets_Unaud1

Condensed Balance Sheets (Unaudited) (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, except Share data, unless otherwise specified
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$160	$160
Percentage of noncumulative preferred stock	10.00%	10.00%
Preferred stock, par value	$50	$50
Preferred stock, shares authorized	640	640
Preferred stock, shares issued	640	640
Preferred stock, shares outstanding	640	640
Common stock, par value	$0.50	$0.50
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	4,860,635	4,859,871
Common stock, shares outstanding	4,860,635	4,859,871

Condensed_Statements_of_Operat

Condensed Statements of Operations (Unaudited) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Operating Revenue	$7,261	$6,514
Operating Expenses:
Maintenance of way and structures	1,533	1,352
Maintenance of equipment	762	912
Transportation	2,792	2,471
General and administrative	1,382	1,238
Depreciation	876	900
Taxes, other than income taxes	733	657
Car hire, net	383	226
Employee retirement plans	57	57
Track usage fees	40	29
Total Operating Expenses	8,558	7,842
Loss from Operations	-1,297	-1,328
Other income	7	10
Loss from operations prior to income taxes	-1,290	-1,318
Provision from Income Tax (Benefit)	-447	-641
Net Loss	-843	-677
Preferred Stock Dividends	3	3
Net Loss Available to Common Shareholders	($846)	($680)
Basic and Diluted Loss Per Common Share	($0.17)	($0.14)
Weighted-Average Common Shares Outstanding
For basic	4,859,879	4,850,938
For diluted	4,859,879	4,850,938

Condensed_Statements_of_Cash_F

Condensed Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Cash Flows from Operating Activities:
Net loss	($843)	($677)
Adjustments to reconcile net loss to net cash flows provided by operating activities:
Depreciation	876	900
Amortization of deferred grant income	-235	-140
Deferred grant and other income	288	195
Deferred income taxes benefit	-447	-641
Share-based compensation	98	114
Increase (decrease) in cash from:
Accounts receivable	278	1,325
Materials and supplies	10	39
Prepaid expenses and other	340	249
Accounts payable and accrued expenses	444	-689
Net cash flows provided by operating activities	809	675
Cash flows from Investing Activities:
Purchase of property and equipment	-350	-275
Net cash flows used in investing activities	-350	-275
Cash Flows from Financing Activities:
Dividends paid	-198	-197
Issuance of common shares for stock options exercised and employee stock purchases	12	31
Net cash flows used in financing activities	-186	-166
Increase in Cash and Cash Equivalents	273	234
Cash and Cash Equivalents, Beginning of Period	6,414	2,614
Cash and Cash Equivalents, End of Period	6,687	2,848
Supplemental Disclosures:
Property and equipment included in accounts payable	217	61
Cash paid for income taxes	$385	$55

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Basis of Presentation	1	In the opinion of management, the accompanying interim condensed financial statements of the Providence and Worcester Railroad Company (the “Company”) contain all adjustments (consisting solely of normal and recurring adjustments) necessary to present fairly the financial position as of March 31, 2015 and the results of operations and cash flows for the three months ended March 31, 2015 and 2014 in accordance with accounting principles generally accepted in the United States. The accompanying condensed balance sheet as of December 31, 2014, has been derived from audited financial statements pursuant to the rules and regulations of the Securities and Exchange Commission. These interim financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission. Results for interim periods may not be necessarily indicative of the results to be expected for the full year.

Recent_Accounting_Pronouncemen

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2015
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	2	Recent Accounting Pronouncements:
	In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which supersedes previous revenue recognition guidance. The new standard requires that a company recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the company expects to receive in exchange for those goods or services. ASU 2014-09 anticipates companies using more judgment and estimates than under the current guidance. ASU 2014-09 permits the use of retrospective application to period presented or a cumulative effect transition adjustment. The Company is currently evaluating the impact of adopting this new guidance on its financial statements and related disclosures.

Changes_in_Shareholders_Equity

Changes in Shareholders' Equity	3 Months Ended
	Mar. 31, 2015
Equity [Abstract]
Changes in Shareholders' Equity	3	Changes in Shareholders’ Equity:
			Preferred		Common		Additional		Retained			Total
			Stock		Stock		Paid-in		Earnings			Shareholders’
							Capital					Equity
	Balance December 31, 2014		$	32	$	2,430	$	37,891	$	39,059		$	79,412
	Issuance of 764 common shares for employee stock purchases, stock options exercised and employee stock awards							14					14
	Share-based compensation, options granted							96					96
	Dividends
	Preferred stock, $5.00 per share									(3	)		(3	)
	Common stock, $.04 per share									(195	)		(195	)
	Net loss for the period									(843	)		(843	)
	Balance March 31, 2015		$	32	$	2,430	$	38,001	$	38,018		$	78,481

Debt

Debt	3 Months Ended
	Mar. 31, 2015
Debt Disclosure [Abstract]
Debt	4	Debt
	The Company has a revolving line of credit facility in the amount of $5,000 from a commercial bank expiring on June 25, 2015. Borrowings under this line of credit are unsecured, due on demand and bear interest at either the bank’s prime rate or one and three-quarters percent over the thirty, sixty or ninety day London Interbank Offered Rate (“LIBOR”) with a LIBOR floor of one and one-quarter percent. The Company pays no commitment fee on this line of credit and has no compensating balance requirements. It is subject to financial and non-financial covenants including maintenance of a minimum net worth and restrictions as to the incurrence of additional indebtedness, as well as the sale or encumbrance of its assets. At March 31, 2015 and December 31, 2014, no amounts were outstanding.

Loss_per_Common_Share

Loss per Common Share	3 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
Loss per Common Share	5	Loss per Common Share:
	Loss per common share is computed using the weighted average number of common shares outstanding during each quarter. Diluted income (loss) per common share reflects the effect of the Company’s outstanding convertible preferred stock (using the if-converted method) and options (using the treasury stock method), except where such items would be anti-dilutive.
	A reconciliation of weighted average shares used for the basic computation and that used for the diluted computation is as follows:
			2015								2014
			Net Loss			Shares		Per Share			Net Loss			Shares		Per Share
								Amount								Amount
	Basic Earnings per Share
	Net Loss available to Common Shareholders		$	(846	)						$	(680	)
	Basic loss per share		$	(846	)		4,860	$	(.17	)	$	(680	)		4,851	$	(.14	)
	Diluted Earnings per Share
	Net Loss available to Common Shareholders		$	(846	)						$	(680	)
	Effect of Dilutive Securities								—						—
	Diluted loss per Share		$	(846	)		4,860	$	(.17	)	$	(680	)		4,851	$	(.14	)
	Options to purchase 67,289 and 67,695 shares of common stock were outstanding at March 31, 2015 and 2014, respectively. No outstanding options were included in the computation of diluted loss per common share for 2015 and 2014 as the effect would be antidilutive. Shares of preferred stock convertible into 64,000 shares of common stock were outstanding at March 31, 2015 and 2014. These shares were not included in the computation of diluted (loss) earnings per common share for 2015 and 2014 because of the anti-dilutive effect.

Commitments_and_Contingent_Lia

Commitments and Contingent Liabilities	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingent Liabilities	6	Commitments and Contingent Liabilities:
	The Company is a defendant in certain lawsuits relating to casualty losses, many of which are covered by insurance subject to a deductible. The Company believes that adequate provision has been made in the condensed financial statements for any expected liabilities which may result from disposition of such lawsuits.
	On January 29, 2002, the Company received a “Notice of Potential Liability” from the United States Environmental Protection Agency (“EPA”) regarding an existing Superfund Site (the “Site”) that includes the J.M. Mills Landfill in Cumberland, Rhode Island. EPA sends these “Notice” letters to potentially responsible parties (“PRPs”) under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”). EPA identified the Company as a PRP based on its status as an owner and/or operator because its railroad property traverses the Site. Via these Notice letters, EPA demanded payment of past costs (identified in the letter as $762 thousand) and future costs associated with the response actions taken to address the contamination at the Site, and requests PRPs to indicate their willingness to participate and resolve their potential liability at the Site. The Company responded to EPA by stating that it does not believe it has any liability for this Site, but that it is interested in cooperating with EPA to address issues concerning liability at the Site. Two other parties have already committed via a consent order with EPA to pay for the Remedial Investigation/Feasibility Study (“RI/FS”) phase of the clean-up at the Site, which has not yet been completed. After that, EPA will likely seek to negotiate the cost of the Remedial Design and implementation of the remedy at the Site with the PRPs it has identified (which presently includes over sixty parties, and is likely to increase after EPA completes its investigation of the identity of PRPs). On December 15, 2003, the EPA issued a second “Notice of Potential Liability” letter to the Company regarding the Site. EPA again identified the Company as a PRP, this time because EPA “believes that [the Company] accepted hazardous substance for transport to disposal or treatment facilities and selected the site for disposal.” The Company responded again to EPA stating its interest in cooperating with EPA but that it does not believe it has engaged in any activities that caused contamination at the Site. The Company believes that none of its activities caused contamination at the Site, and will contest this claim by EPA and therefore no liability has been accrued for this matter.
	In connection with the EPA claim described above, on December 28, 2002 the two parties who have committed to conduct the RI/FS at the Site filed a complaint in the U.S. District Court of Rhode Island against the Company, in an action entitled CCL Custom Manufacturing, Inc. v. Arkwright Incorporated, et al (consolidated with Unilever Bestfoods v. American Steel & Aluminum Corp. et al), C.A. No. 01-496/L. The Company was one of about sixty parties named by Plaintiffs in this suit, to recover response costs incurred in investigating and responding to the releases of hazardous substances at the Site. Plaintiffs alleged that the Company is liable under 42 U.S.C. § 961(a) (3) of CERCLA as an “arranger” or “generator” of waste that ended up at the Site. The Company entered into a Generator Cooperation Agreement with other defendants to allocate costs in responding to this suit, and to share technical costs and information in evaluating the Plaintiffs’ claims. Although the Company does not believe it generated any waste that ended up at the Site, or that its activities caused contamination at the Site, the Company paid $45 thousand to settle this suit in March 2006.

Amtrak_Agreement

Amtrak Agreement	3 Months Ended
	Mar. 31, 2015
Text Block [Abstract]
Amtrak Agreement	7	Amtrak Agreement
	On April 4, 2012, the Company and National Railroad Passenger Corporation (“Amtrak”) entered into the 2012 Settlement and Amendment Agreement (the “2012 Agreement”) which settles certain disputes between the parties and amends, in part, both an Agreement dated January 3, 1978 (the “1978 Agreement”) and an Agreement dated July 9, 1979 by and between Amtrak and the Company. Under the 1978 Agreement, Amtrak obtained the right to remove certain Company trackage subject to the requirement of providing replacement facilities.
	Pursuant to the Agreement, the Company received a credit for mileage traveled along the Northeast Corridor. The Company recognizes the expense offset relative to Track Usage Fees as the expenses are incurred. As such, the Company did not record any related assets or liabilities relative to the mileage credit. The Company has recorded the following offsets to Track Usage expense and has the following track mileage credit remaining:
			Three Months Ended
			March 31,
			2015		2014
	Mileage credit available, beginning		$	418	$	1,219
	Operating rights offset			130		104
	Mileage credit remaining, ending		$	288	$	1,115

Subsequent_Events

Subsequent Events	3 Months Ended
	Mar. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	8	Subsequent Events:
	On April 29, 2015, the Company declared a dividend of $.04 per share on its outstanding Common Stock payable May 27, 2015 to shareholders of record on May 13, 2015.
	During May 2015, the Company entered into a loan agreement with its commercial bank for $5 million. The loan requires payment of interest only for twelve months whereupon it converts to a ten year term loan with payments based upon a twenty year amortization. The loan will bear interest at 4.11% per annum for the life of the loan. The loan will be unsecured but will subject the Company to certain financial and non-financial covenants, including the maintenance of certain tangible net worth levels. The Company and its commercial bank extended the revolving credit line through June 2017. Borrowings under this line of credit are unsecured, due on demand and bear interest at one and one half percent over the thirty, sixty or ninety day London Interbank Offered Rate (“LIBOR”). The Company pays no commitment fee on this line and has no compensating balance requirements.

Changes_in_Shareholders_Equity1

Changes in Shareholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2015
Equity [Abstract]
Changes in Shareholders' Equity
		Preferred		Common		Additional		Retained			Total
		Stock		Stock		Paid-in		Earnings			Shareholders’
						Capital					Equity
	Balance December 31, 2014	$	32	$	2,430	$	37,891	$	39,059		$	79,412
	Issuance of 764 common shares for employee stock purchases, stock options exercised and employee stock awards						14					14
	Share-based compensation, options granted						96					96
	Dividends
	Preferred stock, $5.00 per share								(3	)		(3	)
	Common stock, $.04 per share								(195	)		(195	)
	Net loss for the period								(843	)		(843	)
	Balance March 31, 2015	$	32	$	2,430	$	38,001	$	38,018		$	78,481

Loss_per_Common_Share_Tables

Loss per Common Share (Tables)	3 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
Reconciliation of Weighted Average Shares Used for the Basic Computation and that Used for the Diluted Computation	A reconciliation of weighted average shares used for the basic computation and that used for the diluted computation is as follows:
		2015								2014
		Net Loss			Shares		Per Share			Net Loss			Shares		Per Share
							Amount								Amount
	Basic Earnings per Share
	Net Loss available to Common Shareholders	$	(846	)						$	(680	)
	Basic loss per share	$	(846	)		4,860	$	(.17	)	$	(680	)		4,851	$	(.14	)
	Diluted Earnings per Share
	Net Loss available to Common Shareholders	$	(846	)						$	(680	)
	Effect of Dilutive Securities							—						—
	Diluted loss per Share	$	(846	)		4,860	$	(.17	)	$	(680	)		4,851	$	(.14	)

Amtrak_Agreement_Tables

Amtrak Agreement (Tables)	3 Months Ended
	Mar. 31, 2015
Text Block [Abstract]
Schedule of Remaining Track Mileage Credit	The Company has recorded the following offsets to Track Usage expense and has the following track mileage credit remaining:
		Three Months Ended
		March 31,
		2015		2014
	Mileage credit available, beginning	$	418	$	1,219
	Operating rights offset		130		104
	Mileage credit remaining, ending	$	288	$	1,115

Changes_in_Shareholders_Equity2

Changes in Shareholders' Equity - Changes in Shareholders' Equity (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Beginning Balance	$79,412
Issuance of 764 common shares for employee stock purchases, stock options exercised and employee stock awards	14
Share-based compensation, options granted	96
Dividends
Preferred stock, $5.00 per share	-3
Common stock, $.04 per share	-195
Net loss for the period	-843	-677
Ending Balance	78,481
Preferred Stock [Member]
Beginning Balance	32
Issuance of 764 common shares for employee stock purchases, stock options exercised and employee stock awards	0
Share-based compensation, options granted	0
Dividends
Preferred stock, $5.00 per share	0
Common stock, $.04 per share	0
Net loss for the period	0
Ending Balance	32
Common Stock [Member]
Beginning Balance	2,430
Issuance of 764 common shares for employee stock purchases, stock options exercised and employee stock awards	0
Share-based compensation, options granted	0
Dividends
Preferred stock, $5.00 per share	0
Common stock, $.04 per share	0
Net loss for the period	0
Ending Balance	2,430
Additional Paid-in Capital [Member]
Beginning Balance	37,891
Issuance of 764 common shares for employee stock purchases, stock options exercised and employee stock awards	14
Share-based compensation, options granted	96
Dividends
Ending Balance	38,001
Retained Earnings [Member]
Beginning Balance	39,059
Dividends
Preferred stock, $5.00 per share	-3
Common stock, $.04 per share	-195
Net loss for the period	-843
Ending Balance	$38,018

Changes_in_Shareholders_Equity3

Changes in Shareholders' Equity - Changes in Shareholders' Equity (Parenthetical) (Detail) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015
Issuance of common shares for stock options exercised	764
Preferred stock dividends per share	$5
Common stock dividends per share	$0.04
Common Stock [Member]
Issuance of common shares for stock options exercised	764
Additional Paid-in Capital [Member]
Issuance of common shares for stock options exercised	764
Retained Earnings [Member]
Preferred stock dividends per share	$5
Common stock dividends per share	$0.04

Debt_Additional_Information_De

Debt - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Compensating balance amount	$0
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Extended revolving line of credit facility	5,000,000
Line of credit facility maturity date	25-Jun-15
Variable rate interest	LIBOR
Variable rate interest Option 2	One and three-quarters percent over the thirty, sixty or ninety day London Interbank Offered Rate ("LIBOR") with a LIBOR floor of one and one-quarter percent.
Commitment fee amount	0
Outstanding line of credit	$0	$0

Loss_per_Common_Share_Reconcil

Loss per Common Share - Reconciliation of Weighted Average Shares Used for the Basic Computation and that Used for the Diluted Computation (Detail) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Basic Earnings per Share
Net Loss available to Common Shareholders	($846)	($680)
Number of basic shares	4,859,879	4,850,938
Basic Loss per share	($0.17)	($0.14)
Diluted Earnings per Share
Net Loss available to Common Shareholders	-846	-680
Effect of Dilutive Securities	0	0
Number of diluted shares	4,859,879	4,850,938
Diluted Loss per Share	($0.17)	($0.14)
Net Loss available to Common Shareholders	($846)	($680)

Loss_per_Common_Share_Addition

Loss per Common Share - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Earnings Per Share [Abstract]
Options outstanding for the purchase of common stock	67,289	67,695
Outstanding options included in the computation of diluted loss per common share	0	0
Preferred stock convertible into common stock at rate of shares of common stock	64,000	64,000
Shares excluded from computation of diluted (loss) earnings per common share	64,000	64,000

Commitments_and_Contingent_Lia1

Commitments and Contingent Liabilities - Additional Information (Detail) (USD $)	1 Months Ended	3 Months Ended
	Mar. 31, 2006	Mar. 31, 2015
		Plaintiff
Commitments and Contingencies Disclosure [Abstract]
Payment of past costs demand		$762,000
Number of parties named by Plaintiff		60
Accrued liability from United States Environmental Protection Agency		0
Amount paid to settle suit	$45,000

Amtrak_Agreement_Schedule_of_R

Amtrak Agreement - Schedule of Remaining Track Mileage Credit (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Agreement With Related Party [Abstract]
Mileage credit available, beginning	$418	$1,219
Operating rights offset	130	104
Mileage credit remaining, ending	$288	$1,115

Subsequent_Events_Additional_I

Subsequent Events - Additional Information (Detail) (USD $)	0 Months Ended	3 Months Ended	0 Months Ended
	Apr. 29, 2015	Mar. 31, 2015	13-May-15
Subsequent Event [Line Items]
Compensating balance amount		0
Subsequent Events [Member]
Subsequent Event [Line Items]
Dividend declared	$0.04
Dividend payable declared	29-Apr-15
Outstanding common stock payable date	27-May-15
Dividend payable date on record	13-May-15
Commercial Loan [Member]
Subsequent Event [Line Items]
Variable rate interest		LIBOR
Variable rate interest Option 2		One and one half percent over the thirty, sixty or ninety day London Interbank Offered Rate ("LIBOR").
Commercial Loan [Member] | Subsequent Events [Member]
Subsequent Event [Line Items]
Commercial bank loan			5,000,000
Debt instrument maturity term			10 years
Amortization period			20 years
Loan Interest rate			4.11%
Commitment fee amount			0
Compensating balance amount			$0