Exhibit 99.1
GENESEE & WYOMING REPORTS DILUTED EPS OF $0.26 FOR THE FOURTH QUARTER OF 2004;
$0.34 EXCLUDING IMPACT OF REFINANCING AND TAX ADJUSTMENT
GREENWICH, Conn., Feb. 15 /PRNewswire-FirstCall/ -- Genesee & Wyoming Inc.
(GWI) (NYSE: GWR) reported today that net income in the fourth quarter of 2004
was $7.2 million, compared to net income of $7.9 million in the fourth quarter
of 2003. GWI's fourth quarter 2004 results included a
$1.1 million after-tax charge related to its November debt refinancing as well
as a $1.0 million tax accrual related to an increase in its projected U.S. tax
rate.
GWI's diluted earnings per share in the fourth quarter of 2004 were $0.26
with 27.6 million shares outstanding, compared to diluted earnings per share of
$0.28 with 27.3 million shares outstanding in the fourth quarter of 2003.
Excluding the $0.04 impact of the debt refinancing and the $0.04 impact of the
U.S. tax rate adjustment, GWI's diluted earnings per share were $0.34 in the
fourth quarter of 2004. (Note that prior to GWI's adoption of Emerging Issues
Task Force Bulletin Issue No. 03-06 under FASB Statement No. 128 which became
effective June 30, 2004, GWI's diluted EPS for the fourth quarter of 2003 were
$0.29.)
Based on GWI's current and projected level of profitability, management has
increased the tax rate used to compute its U.S. income tax expense to the
highest corporate bracket of 35%. As a result, GWI increased its fourth quarter
tax accrual by $1.0 million, of which $0.2 million relates to the first nine
months of 2004 and $0.8 million relates to an increase in net U.S. deferred tax
liabilities generated in 2003 and prior years. From 2005 through 2007, the
increased tax provision will be more than offset by recent U.S. tax legislation
which is expected to significantly reduce GWI's effective book tax rate because
of a three-year tax credit for short line railroads.
As previously announced, the $257 million refinancing of GWI's U.S. and
Canadian credit facilities in the fourth quarter of 2004 resulted in a $1.1
million after-tax charge, of which $0.9 million was a non-cash write-off of
deferred financing fees and $0.2 million was the cash cost of exiting certain
interest rate swaps.
North American Results
In the fourth quarter of 2004, GWI's North American revenue increased 30.1%
to $80.1 million, compared to $61.5 million in the fourth quarter of 2003. Of
this $18.6 million increase in revenue, $9.6 million was same- railroad growth,
$6.6 million was from the acquisition of rail lines from Georgia-Pacific Corp.,
$1.9 million was from the start-up of the Tazewell & Peoria Railroad in Illinois
and $0.5 million was from the start-up of the Savannah Wharf rail line in
Georgia. The 15.5% growth in same-railroad revenue was balanced across multiple
commodity groups, with particular strength in metals shipments which increased
by $1.5 million, or 33.1%; coal shipments which increased by $1.3 million, or
14.7%; and paper shipments which increased by $1.2 million, or 16.0%.
GWI's North American operating income in the fourth quarter of 2004
increased 41.8% to $11.7 million, compared with $8.3 million in the fourth
quarter of 2003. The North American operating ratio improved by 1.2% to 85.4% in
the fourth quarter of 2004, compared with an operating ratio of 86.6% in the
fourth quarter of 2003. Operating costs in the fourth quarter of 2004 were
adversely affected by a 55.3% increase in the average price per gallon of diesel
fuel compared to the same period last year. GWI also incurred $0.5 million in
start up costs from the commencement of operations of the Tazewell & Peoria
Railroad in November 2004.
Australian Results
In Australia, revenue at GWI's 50%-owned subsidiary, Australian Railroad
Group (ARG), increased 15.1% to US$85.9 million in the fourth quarter of 2004,
compared with US$74.6 million in the fourth quarter of 2003. This US$11.3
million increase in revenue was composed of US$3.2 million in grain, US$2.0
million in iron ores and US$6.1 million in all other revenues. In Australian
dollars, ARG's revenue increased 12.0% in the fourth quarter of 2004 compared
with the fourth quarter of 2003.
ARG's operating income in the fourth quarter of 2004 was US$17.1 million,
compared with operating income of US$18.6 million in the fourth quarter of 2003.
ARG's operating ratio was 80.1% in the fourth quarter of 2004, compared with
75.0% in the fourth quarter of 2003. The operating ratio in the fourth quarter
of 2004 was adversely impacted by higher contract driver costs due to a
locomotive engineer shortage in Australia and a 49.8% increase in the price of
diesel fuel.
Equity income from ARG in the fourth quarter of 2004 was US$3.5 million,
unchanged from the fourth quarter of 2003. Equity income in the fourth quarter
of 2003 included a US$0.9 million charge from the write-off of unamortized
financing fees in conjunction with ARG's debt refinancing and a US$0.6 million
tax benefit from finalizing the tax base of assets acquired from the government
of Western Australia. In comparing the fourth quarter of 2004 with the fourth
quarter of 2003, the Australian dollar strengthened 4.0%.
Annual Consolidated Results
For the year ended December 31, 2004, GWI reported net income of $37.6
million, of which $22.7 million (60.4%) was from North America, $14.2 million
(37.8%) was from Australia and $0.7 million (1.8%) was from South America. This
represents a 31.0% increase over $28.7 million of net income reported in the
year ended December 31, 2003. GWI's diluted earnings per share increased 32.0%
to $1.36 in 2004 (with 27.4 million shares outstanding), compared with $1.03 in
2003 (with 26.8 million shares outstanding).
For the year ended December 31, 2004, GWI's North American operations
generated Free Cash Flow of $33.1 million (defined as Cash from Operations of
$55.0 million less Cash used in Investing of $24.8 million excluding Cash used
for Acquisitions of $2.9 million) compared with $26.0 million of Free Cash Flow
(defined as Cash from Operations of $46.9 million less Cash used in Investing of
$75.9 million excluding Cash used for Acquisitions of $55.0 million) in the same
period of 2003. See the attached schedule for a description and discussion of
Free Cash Flow.
Mortimer B. Fuller III, Chairman and Chief Executive Officer of GWI,
commented, "GWI's financial results for 2004 were excellent. In North America,
our net income increased 25.6% and we generated record free cash flow of $33.1
million. Due to strong economic activity throughout our operating regions, we
achieved 12.8% same railroad revenue growth, which more than offset a
substantial increase in the price of diesel fuel. In addition, our Rail Link
management team successfully integrated the acquisition of three railroads from
Georgia-Pacific and one rail property from CSX, while our Illinois management
team achieved a smooth start up of the Tazewell & Peoria Railroad."
Mr. Fuller continued, "In Australia, ARG's net income increased 37.3%, as we
hauled record tonnages of grain and experienced good growth in most of our ores
and minerals traffic. Against a backdrop of high fuel prices and locomotive
driver shortages for most of the year, this was a reasonably good outcome for
ARG. Although we will be shipping a weaker grain harvest in 2005, we are focused
on the strong fundamentals of our non-grain business and will be investing to
support its growth. Due to major expansion plans at three of our iron ore
customers and one of our alumina customers, we expect to benefit from traffic
growth late in 2005 and into 2006."
As previously announced, GWI's conference call to discuss financial results
for the fourth quarter will be held today at 10:00AM (Eastern Time). The dial-in
number for the teleconference is 800-288-8961 or the call may be accessed live
over the Internet (listen only) directly at
http://phx.corporate-ir.net/phoenix.zhtml?c=64426&p=irol-irhome or via the
Investors tab of Genesee & Wyoming's website (http://www.gwrr.com). An audio
replay of the conference call will be accessible via the Investors tab of
Genesee & Wyoming's website starting this afternoon.
GWI is a leading operator of short line and regional freight railroads in
the United States, Canada, Mexico, Australia and Bolivia. The Company operates
over 8,100 miles of owned and leased track and more than 3,000 additional miles
under track access arrangements.
This press release contains forward-looking statements regarding future
events and the future performance of Genesee & Wyoming Inc. that involve risks
and uncertainties that could cause actual results to differ materially from its
current expectations including, but not limited to, economic conditions,
customer demand, increased competition in relevant markets, and others. GWI
refers you to the documents that it files from time to time with the Securities
and Exchange Commission, such as GWI's Forms 10-Q and 10-K which contain
additional important factors that could cause its actual results to differ from
its current expectations and from the forward-looking statements contained in
this press release.
GENESEE & WYOMING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
--------------------------- ---------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
REVENUES $ 80,076 $ 61,529 $ 303,784 $ 244,827
EQUITY ISSUANCE EXPENSE - - 542 -
OPERATING EXPENSES 68,378 53,278 253,203 208,522
INCOME FROM OPERATIONS 11,698 8,251 50,039 36,305
INTEREST EXPENSE (4,072) (1,961) (11,142) (8,646)
OTHER (EXPENSE) INCOME, NET (333) 219 (131) 986
INCOME BEFORE INCOME TAXES AND
EQUITY EARNINGS 7,293 6,509 38,766 28,645
PROVISION FOR INCOME TAXES 3,791 2,308 16,059 10,567
INCOME BEFORE EQUITY EARNINGS 3,502 4,201 22,707 18,078
EQUITY IN NET INCOME OF
INTERNATIONAL AFFILIATES:
AUSTRALIAN RAILROAD GROUP 3,489 3,512 14,235 10,371
SOUTH AMERICA 181 158 677 270
NET INCOME 7,172 7,871 37,619 28,719
IMPACT OF PREFERRED STOCK
OUTSTANDING - 301 479 1,270
NET INCOME AVAILABLE TO COMMON
SHAREHOLDERS $ 7,172 $ 7,570 $ 37,140 $ 27,449
BASIC EARNINGS PER SHARE:
NET INCOME AVAILABLE TO COMMON
SHAREHOLDERS $ 0.29 $ 0.32 $ 1.54 $ 1.16
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING 24,328 23,838 24,138 23,659
DILUTED EARNINGS PER SHARE:
NET INCOME $ 0.26 $ 0.28 $ 1.36 $ 1.03
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING 27,644 27,255 27,402 26,768
GENESEE & WYOMING INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
December 31, December 31,
2004 2003
------------- -------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 14,451 $ 11,118
Accounts receivable, net 64,537 54,656
Materials and supplies 5,263 5,204
Prepaid expenses and other 7,784 6,204
Deferred income tax assets, net 3,190 3,010
Total current assets 95,225 80,192
PROPERTY AND EQUIPMENT, net 337,024 315,345
INVESTMENT IN UNCONSOLIDATED
AFFILIATES 132,528 117,664
GOODWILL 24,682 24,522
INTANGIBLE ASSETS, net 77,778 79,357
OTHER ASSETS, net 10,014 10,093
Total assets $ 677,251 $ 627,173
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 6,356 $ 6,589
Accounts payable 63,794 57,472
Accrued expenses 21,598 13,902
Total current liabilities 91,748 77,963
LONG-TERM DEBT, less current portion 125,881 151,433
DEFERRED INCOME TAX LIABILITIES, net 50,517 41,840
DEFERRED ITEMS - grants from
governmental agencies 46,229 42,667
DEFERRED GAIN - sale/leaseback 3,495 3,982
OTHER LONG-TERM LIABILITIES 14,122 14,843
MINORITY INTEREST 3,559 3,365
REDEEMABLE CONVERTIBLE PREFERRED
STOCK - 23,994
TOTAL STOCKHOLDERS' EQUITY 341,700 267,086
Total liabilities and
stockholders' equity $ 677,251 $ 627,173
GENESEE & WYOMING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Year Ended
December 31,
---------------------------
2004 2003
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 37,619 $ 28,719
Adjustments to reconcile net income
to net cash provided by operating
activities-
Depreciation and amortization 19,243 15,471
Amortization of restricted stock 189
Deferred income taxes 7,856 9,659
Net gain on sale and impairment of assets (13) (87)
Write off of deferred financing fees
from early extinguishment of debt 1,611 -
Equity earnings of unconsolidated
international affiliates (14,911) (10,641)
Minority interest expense 194 243
Tax benefit realized upon exercise
of stock options 1,545 1,123
Valuation adjustment of split dollar
life insurance asset (459) (367)
Changes in assets and liabilities,
net of effect of acquisitions -
Accounts receivable (9,210) 3,267
Materials and supplies 9 325
Prepaid expenses and other (1,567) 999
Accounts payable and accrued
expenses 12,846 (3,941)
Other assets and liabilities, net 35 2,147
Net cash provided by
operating activities 54,987 46,917
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment,
net of proceeds from government grants (28,072) (18,934)
Locomotive upgrade project - (4,076)
Purchase of Pawnee Transloading Company
Inc., net of cash received, Homer City
and Savannah Wharf rail properties (2,909) -
Purchase of Chattahoochee Industrial
Railroad, Arkansas, Louisiana and
Mississippi Railroad and Fordyce &
Princeton Railroad Companies - (54,952)
Cash received from unconsolidated
international affiliates 5,757 132
Proceeds from disposition of
property and equipment 448 1,941
Net cash used in investing
activities (24,776) (75,889)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term borrowings (283,579) (159,608)
Proceeds from issuance of long-term debt 254,800 186,500
Payment of debt issuance costs (1,396) -
Proceeds from employee stock purchases 3,046 2,546
Dividend on Redeemable Convertible
Preferred Stock (411) (1,000)
Net cash (used in) provided
by financing activities (27,540) 28,438
EFFECT OF EXCHANGE RATE CHANGES ON
CASH AND CASH EQUIVALENTS 662 624
INCREASE IN CASH AND CASH EQUIVALENTS 3,333 90
CASH AND CASH EQUIVALENTS, beginning
of period 11,118 11,028
CASH AND CASH EQUIVALENTS, end of
period $ 14,451 $ 11,118
GENESEE & WYOMING INC. AND SUBSIDIARIES
Selected Consolidated Financial Information
(dollars in thousands)
(Unaudited)
Three Months Ended
December 31,
-------------------------------------------------
2004 2003
----------------------- -----------------------
% of % of
Amount Revenue Amount Revenue
---------- ---------- ---------- ----------
Revenues:
Freight $ 58,439 73.0% $ 45,848 74.5%
Non-freight 21,637 27.0% 15,681 25.5%
Total revenues $ 80,076 100.0% $ 61,529 100.0%
Operating Expense Comparison:
Natural Classification
Labor and benefits $ 27,183 33.9% $ 22,447 36.5%
Equipment rents 7,376 9.2% 5,247 8.5%
Purchased services 5,086 6.4% 4,031 6.6%
Depreciation and amortization 4,948 6.2% 4,033 6.6%
Diesel fuel 7,919 9.9% 4,600 7.5%
Casualties and insurance 3,752 4.7% 4,156 6.8%
Materials 4,191 5.2% 3,367 5.5%
Net gain on sale and impairment of
assets - 0.0% (228) -0.4%
Other expenses 7,923 9.9% 5,625 9.0%
Total operating expenses $ 68,378 85.4% $ 53,278 86.6%
Functional Classification
Transportation $ 28,448 35.5% $ 22,263 36.2%
Maintenance of ways and structures 7,344 9.2% 6,418 10.4%
Maintenance of equipment 12,813 16.0% 9,514 15.5%
General and administrative 14,825 18.5% 11,278 18.3%
Net gain on sale and impairment of
assets - 0.0% (228) -0.4%
Depreciation and amortization 4,948 6.2% 4,033 6.6%
Total operating expenses $ 68,378 85.4% $ 53,278 86.6%
GENESEE & WYOMING INC. AND SUBSIDIARIES
Selected Consolidated Financial Information
(dollars in thousands)
(Unaudited)
Year Ended
December 31,
-------------------------------------------------
2004 2003
----------------------- -----------------------
% of % of
Amount Revenue Amount Revenue
---------- ---------- ---------- ----------
Revenues:
Freight $ 226,265 74.5% $ 182,567 74.6%
Non-freight 77,519 25.5% 62,260 25.4%
Total revenues $ 303,784 100.0% $ 244,827 100.0%
Operating Expense Comparison:
Natural Classification
Labor and benefits $ 105,079 34.6% $ 87,315 35.7%
Equipment rents 27,692 9.1% 18,409 7.5%
Purchased services 18,358 6.0% 17,766 7.3%
Depreciation and amortization 19,243 6.3% 15,471 6.3%
Diesel fuel 25,432 8.4% 18,325 7.5%
Casualties and insurance 15,710 5.2% 13,831 5.6%
Materials 15,336 5.0% 15,189 6.2%
Net gain on sale and impairment of
assets (13) 0.0% (87) 0.0%
Other expenses 26,908 8.9% 22,303 9.1%
Total operating expenses $ 253,745 83.5% $ 208,522 85.2%
Functional Classification
Transportation $ 102,425 33.7% $ 84,268 34.4%
Maintenance of ways and structures 29,346 9.7% 25,969 10.6%
Maintenance of equipment 47,602 15.7% 36,695 15.0%
General and administrative 55,142 18.1% 46,206 18.9%
Net gain on sale and impairment of
assets (13) 0.0% (87) 0.0%
Depreciation and amortization 19,243 6.3% 15,471 6.3%
Total operating expenses $ 253,745 83.5% $ 208,522 85.2%
GENESEE & WYOMING INC. AND SUBSIDIARIES
North American Railroad Freight Revenue, Carloads and Average Revenue
Per Carload
Comparison by Commodity Group
(dollars in thousands, except average revenue per carload)
Three Months Ended Three Months Ended
December 31, 2004 December 31, 2003
--------------------------------- ---------------------------------
Average Average
Revenue Revenue
Freight Per Freight Per
Commodity Group Revenues Carloads Carload Revenues Carloads Carload
- ----------------------------------- --------- --------- --------- --------- --------- ---------
Paper $ 10,776 24,169 446 $ 7,651 18,322 $ 418
Coal, Coke & Ores 10,686 46,987 227 8,962 41,945 214
Lumber & Forest Products 6,502 18,732 347 4,317 13,285 325
Metals 6,386 19,472 328 4,494 14,516 310
Petroleum Products 6,214 8,100 767 5,705 7,765 735
Minerals & Stone 5,599 14,347 390 5,462 13,880 394
Farm & Food Products 4,816 13,462 358 3,934 10,901 361
Chemicals-Plastics 4,274 8,487 504 2,858 5,886 486
Autos & Auto Parts 1,416 3,207 442 1,424 3,471 410
Intermodal 640 1,601 400 375 1,183 317
Other 1,130 4,323 261 666 2,827 236
Totals $ 58,439 162,887 359 $ 45,848 133,981 342
GENESEE & WYOMING INC. AND SUBSIDIARIES
North American Railroad Freight Revenue, Carloads and Average Revenue
Per Carload
Comparison by Commodity Group
(dollars in thousands, except average revenue per carload)
Year Ended Year Ended
December 31, 2004 December 31, 2003
--------------------------------- ---------------------------------
Average Average
Revenue Revenue
Freight Per Freight Per
Commodity Group Revenues Carloads Carload Revenues Carloads Carload
- ----------------------------------- --------- --------- --------- --------- --------- ---------
Coal, Coke & Ores $ 45,126 191,038 $ 236 $ 37,881 167,363 $ 226
Paper 40,486 94,340 429 30,939 74,662 414
Lumber & Forest
Products 25,295 76,055 333 17,093 53,793 318
Petroleum Products 24,465 32,401 755 24,455 31,798 769
Metals 23,464 73,412 320 17,445 59,502 293
Minerals & Stone 22,294 59,197 377 21,983 56,484 389
Chemicals-Plastics 16,270 31,262 520 11,067 23,517 471
Farm & Food Products 16,203 40,520 400 12,133 32,589 372
Autos & Auto Parts 6,362 14,665 434 5,775 14,235 406
Intermodal 2,409 6,425 375 1,574 5,518 285
Other 3,891 14,034 277 2,222 10,292 216
Totals $ 226,265 633,349 357 $ 182,567 529,753 345
AUSTRALIAN RAILROAD GROUP PTY. LTD.
CONSOLIDATED STATEMENTS OF INCOME
(U.S. dollars in thousands)
(Unaudited - U.S. GAAP)
Three Months Ended Year Ended
December 31, December 31,
--------------------------- ---------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
REVENUES $ 85,882 $ 74,583 $ 333,647 $ 249,571
OPERATING EXPENSES 68,773 55,936 265,702 194,089
RESTRUCTURING COSTS - - - 267
TOTAL OPERATING EXPENSES 68,773 55,936 265,702 194,356
INCOME FROM OPERATIONS 17,109 18,647 67,945 55,215
INTEREST EXPENSE (7,370) (11,120) (28,438) (33,877)
INTEREST INCOME 265 857 1,227 3,271
INCOME BEFORE TAX 10,004 8,384 40,734 24,609
PROVISION FOR INCOME TAX 3,028 1,361 12,264 3,866
NET INCOME $ 6,976 $ 7,023 $ 28,470 $ 20,743
Australian Railroad Group Pty. Ltd. is 50%-owned by Genesee & Wyoming Inc.
AUSTRALIAN RAILROAD GROUP PTY. LTD.
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
(Unaudited - U.S. GAAP)
December 31, December 31,
2004 2003
------------- -------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 21,217 $ 26,618
Accounts receivable, net 49,085 47,764
Materials and supplies 11,580 10,033
Prepaid expenses and other 3,055 3,069
Total current assets 84,937 87,484
PROPERTY AND EQUIPMENT, net 541,470 478,808
DEFERRED INCOME TAX ASSETS, net 77,325 80,193
OTHER ASSETS, net 8,522 5,476
Total assets $ 712,254 $ 651,961
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ - $ -
Accounts payable 19,832 7,199
Accrued expenses 31,989 35,111
Current income tax liabilities 364 -
Total current liabilities 52,185 42,310
LONG-TERM DEBT 383,425 367,892
DEFERRED INCOME TAX LIABILITIES, net 21,207 14,271
OTHER LONG-TERM LIABILITIES 2,177 2,031
FAIR VALUE OF INTEREST RATE SWAPS 9,788 9,133
SUBORDINATED NOTES TO STOCKHOLDERS - 11,562
Total non-current liabilities 416,597 404,889
REDEEMABLE PREFERRED STOCK OF
STOCKHOLDERS 16,897 16,212
TOTAL STOCKHOLDERS' EQUITY 226,575 188,550
Total liabilities and
stockholders' equity $ 712,254 $ 651,961
Australian Railroad Group Pty. Ltd. is 50%-owned by Genesee & Wyoming Inc.
AUSTRALIAN RAILROAD GROUP PTY. LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
(Unaudited - U.S. GAAP)
Year Ended
December 31,
-----------------------------
2004 2003
------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 28,470 $ 20,743
Adjustments to reconcile net income
to net cash provided by operating
activities-
Depreciation and amortization 27,346 23,443
Deferred income taxes 11,847 11,283
Net gain on sale and impairment
of assets (336) (2,081)
Changes in assets and liabilities 4,829 (8,095)
Net cash provided by
operating activities 72,156 45,293
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (69,519) (35,774)
Proceeds from disposition of
property and equipment 2,570 6,924
Transfer from restricted funds
on deposit - 69,978
Net cash (used in) provided by
investing activities (66,949) 41,128
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on subordinated notes (10,710) -
Payments on borrowings - (430,385)
Proceeds from borrowings - 360,493
Net cash used in
financing activities (10,710) (69,892)
EFFECT OF EXCHANGE RATE DIFFERENCES
ON CASH AND CASH EQUIVALENTS 102 4,207
(DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS (5,401) 20,736
CASH AND CASH EQUIVALENTS, beginning
of period 26,618 5,882
CASH AND CASH EQUIVALENTS, end of
period $ 21,217 $ 26,618
Australian Railroad Group Pty. Ltd. is 50%-owned by Genesee & Wyoming Inc.
AUSTRALIAN RAILROAD GROUP PTY. LTD.
Selected Consolidated Financial Information
(U.S. dollars in thousands)
(Unaudited - U.S. GAAP)
Three Months Ended
December 31,
----------------------------------------------------------
2004 2003
--------------------------- ---------------------------
% of % of
Amount Revenue Amount Revenue
------------ ------------ ------------ ------------
Revenues:
Freight $ 70,573 82.2% $ 63,748 85.5%
Non-freight 15,309 17.8% 10,835 14.5%
Total railroad revenues $ 85,882 100.0% $ 74,583 100.0%
Operating Expenses:
Natural Classification
Labor and benefits $ 15,835 18.4% $ 14,304 19.2%
Equipment rents 321 0.4% 529 0.7%
Purchased services 18,610 21.7% 16,813 22.5%
Depreciation and amortization 7,501 8.7% 6,503 8.7%
Diesel fuel used in operations 7,776 9.1% 5,142 6.9%
Diesel fuel for sales to third
parties 6,395 7.4% 2,149 2.9%
Casualties and insurance 3,152 3.7% 2,124 2.9%
Materials 3,115 3.6% 3,231 4.3%
Net gain on sale and impairment
of assets (712) -0.8% (1,265) -1.7%
Other expenses 6,780 7.9% 6,406 8.6%
Total operating expenses $ 68,773 80.1% $ 55,936 75.0%
Functional Classification
Transportation $ 33,410 38.9% $ 23,951 32.1%
Maintenance of ways and structures 7,070 8.2% 6,809 9.1%
Maintenance of equipment 7,875 9.2% 6,927 9.3%
General and administrative 13,629 15.9% 13,011 17.5%
Net gain on sale and impairment of
assets (712) -0.8% (1,265) -1.7%
Depreciation and amortization 7,501 8.7% 6,503 8.7%
Total operating expenses $ 68,773 80.1% $ 55,936 75.0%
Australian Railroad Group Pty. Ltd. is 50%-owned by Genesee & Wyoming Inc.
AUSTRALIAN RAILROAD GROUP PTY. LTD.
Selected Consolidated Financial Information
(U.S. dollars in thousands)
(Unaudited - U.S. GAAP)
Year Ended
December 31,
----------------------------------------------------------
2004 2003
--------------------------- ---------------------------
% of % of
Amount Revenue Amount Revenue
------------ ------------ ------------ ------------
Revenues:
Freight $ 278,939 83.6% $ 206,923 82.9%
Non-freight 54,708 16.4% 42,648 17.1%
Total railroad revenues $ 333,647 100.0% $ 249,571 100.0%
Operating Expenses:
Natural Classification
Labor and benefits $ 59,566 17.8% $ 47,337 19.0%
Equipment rents 2,519 0.7% 1,733 0.7%
Purchased services 78,775 23.6% 60,096 24.1%
Depreciation and amortization 27,346 8.2% 23,443 9.4%
Diesel fuel used in operations 26,671 8.0% 15,900 6.4%
Diesel fuel for sales to third
parties 19,944 6.0% 6,756 2.7%
Casualties and insurance 9,570 2.9% 8,568 3.4%
Materials 13,726 4.1% 11,635 4.6%
Net gain on sale and impairment
of assets (336) -0.1% (2,081) -0.8%
Other expenses 27,921 8.4% 20,969 8.4%
Total operating expenses $ 265,702 79.6% $ 194,356 77.9%
Functional Classification
Transportation $ 125,279 37.6% $ 76,747 30.8%
Maintenance of ways and structures 39,097 11.7% 32,694 13.1%
Maintenance of equipment 32,849 9.8% 26,057 10.4%
General and administrative 41,467 12.4% 37,496 15.0%
Net gain on sale and impairment of
assets (336) -0.1% (2,081) -0.8%
Depreciation and amortization 27,346 8.2% 23,443 9.4%
Total operating expenses $ 265,702 79.6% $ 194,356 77.9%
Australian Railroad Group Pty. Ltd. is 50%-owned by Genesee & Wyoming Inc.
AUSTRALIAN RAILROAD GROUP PTY. LTD.
Australian Railroad Freight Revenue, Carloads and Average Revenue
Per Carload
Comparison by Commodity Group
(U.S. dollars in thousands, except average revenue per carload)
(Unaudited)
Three Months Ended Three Months Ended
December 31, 2004 December 31, 2003
------------------------------------------ ------------------------------------------
Average Average
Revenue Revenue
Freight Per Freight Per
Commodity Group Revenues Carloads Carload Revenues Carloads Carload
- ------------------------------ ------------ ------------ ------------ ------------ ------------ ------------
Grain $ 23,661 60,303 $ 392 $ 20,416 54,093 $ 377
Other Ores and Minerals 14,587 27,385 533 14,813 28,680 516
Iron Ore 12,612 52,198 242 10,598 47,461 223
Alumina 5,076 39,247 129 4,779 39,026 122
Bauxite 3,487 33,441 104 3,295 30,435 108
Hook and Pull (Haulage) 434 1,075 404 2,412 7,191 335
Gypsum 1,003 12,807 78 788 11,066 71
Other 9,713 17,142 567 6,647 15,836 420
Total $ 70,573 243,598 290 $ 63,748 233,788 273
Australian Railroad Group Pty. Ltd. is 50%-owned by Genesee & Wyoming Inc.
AUSTRALIAN RAILROAD GROUP PTY. LTD.
Australian Railroad Freight Revenue, Carloads and Average Revenue
Per Carload
Comparison by Commodity Group
(U.S. dollars in thousands, except average revenue per carload)
(Unaudited)
Year Ended Year Ended
December 31, 2004 December 31, 2003
------------------------------------------ ------------------------------------------
Average Average
Revenue Revenue
Freight Per Freight Per
Commodity Group Revenues Carloads Carload Revenues Carloads Carload
- ------------------------------ ------------ ------------ ------------ ------------ ------------ ------------
Grain $ 101,983 265,712 $ 384 $ 61,125 158,462 $ 386
Other Ores and
Minerals 58,384 109,418 534 48,782 107,257 455
Iron Ore 45,534 201,612 226 36,238 179,711 202
Alumina 19,666 157,168 125 16,459 153,685 107
Bauxite 12,732 125,793 101 11,363 126,865 90
Hook and Pull (Haulage) 1,713 7,414 231 5,498 13,337 412
Gypsum 3,662 50,394 73 2,915 45,548 64
Other 35,265 67,810 520 24,543 62,865 390
Total $ 278,939 985,321 283 $ 206,923 847,730 244
Australian Railroad Group Pty. Ltd. is 50%-owned by Genesee & Wyoming Inc.
Free Cash Flow Description and Discussion
Management views Free Cash Flow as an important financial measure of how
well GWI is managing its assets. Subject to the limitations discussed below,
Free Cash Flow is a useful indicator of cash flow that may be available for
discretionary use by GWI. Free Cash Flow is defined as Net Cash Provided by
Operating Activities less Net Cash Used in Investing Activities, excluding the
Cost of Acquisitions. Key limitations of the Free Cash Flow measure include the
assumptions that GWI will be able to refinance its existing debt when it matures
and meet other cash flow obligations from financing activities, such as required
dividend payments and principal payments on debt. Free Cash Flow is not intended
to represent, and should not be considered more meaningful than, or as an
alternative to, measures of cash flow determined in accordance with Generally
Accepted Accounting Principles.
The following table sets forth a reconciliation of GWI's Net Cash Provided
by Operating Activities to GWI's Free Cash Flow:
Years Ended December 31,
---------------------------
2004 2003
------------ ------------
Net cash provided by operating activities $ 54,987 $ 46,917
Net cash used in investing activities (24,776) (75,889)
Cash used for acquisitions 2,909 54,952
Free cash flow $ 33,120 $ 25,980
SOURCE Genesee & Wyoming Inc.
-0- 02/15/2005
/CONTACT: John C. Hellmann, Chief Financial Officer, Genesee & Wyoming
Inc., +1-203-629-3722/
/Web site: http://www.gwrr.com /
- -