-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MHNPN9lzPF8Ar5/fHV2nBDicbO8C4jp0gzOZfD3xv/bnidvj19rn4InFh1fZF179 BWVH0Y8YC/CHWNPTJ4aNbw== 0000891092-04-000643.txt : 20040211 0000891092-04-000643.hdr.sgml : 20040211 20040211062942 ACCESSION NUMBER: 0000891092-04-000643 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040211 ITEM INFORMATION: FILED AS OF DATE: 20040211 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENESEE & WYOMING INC CENTRAL INDEX KEY: 0001012620 STANDARD INDUSTRIAL CLASSIFICATION: RAILROADS, LINE-HAUL OPERATING [4011] IRS NUMBER: 060984624 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31456 FILM NUMBER: 04583726 BUSINESS ADDRESS: STREET 1: 66 FIELD POINT ROAD CITY: GREENWICH STATE: CT ZIP: 06830 BUSINESS PHONE: 2036293722 MAIL ADDRESS: STREET 1: 66 FIELD POINT ROAD CITY: GREENWICH STATE: CT ZIP: 06830 8-K 1 e16882_8k.txt FORM 8-K ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 11, 2004 GENESEE & WYOMING INC. (Exact name of registrant as specified in its charter) DELAWARE (State or other jurisdiction of incorporation) 001-31456 06-0984624 (Commission File Number) (I.R.S. Employer Identification No.) 66 FIELD POINT ROAD, GREENWICH, CONNECTICUT 06830 (Address of principal executive offices) (Zip Code) (203) 629-3722 (Registrant's telephone number, including area code) (NOT APPLICABLE) (Former name or former address, if changed since last report) ================================================================================ ITEM 12. Results of Operations and Financial Condition The following Press Release, filed as Exhibit 99, and the information set forth therein is furnished under Item 12, Disclosure of Results of Operations and Financial Condition. The Press Release was issued by Genesee & Wyoming Inc. on February 11, 2004, announcing Genesee & Wyoming Inc.'s financial results for the fourth quarter and year of 2003, which is incorporated herein by reference. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized. GENESEE & WYOMING INC. February 11, 2004 By: /s/ John C. Hellmann -------------------------------------------- John C. Hellmann Chief Financial Officer EX-99 3 e16882ex99.txt PRESS RELEASE Exhibit 99 Genesee & Wyoming Reports Diluted EPS of $0.43 for the Fourth Quarter of 2003; Announces Three for Two Split of Common Stock GREENWICH, Conn., February 11, 2004 /PRNewswire-FirstCall/ -- Genesee & Wyoming Inc. (GWI) (NYSE: GWR) reported today that net income in the fourth quarter of 2003 increased 36.7% to $7.9 million, compared to net income of $5.8 million in the fourth quarter of 2002. GWI's diluted earnings per share in the fourth quarter of 2003 increased 30.3% to $0.43 with 18.2 million shares outstanding, compared to diluted earnings per share of $0.33 with 17.7 million shares outstanding in the fourth quarter of 2002. As previously announced, the fourth quarter of 2003 included a $0.05 per share non-cash charge due to the write-off of unamortized financing fees at the Company's 50%-owned subsidiary, Australian Railroad Group (ARG), in conjunction with the refinancing of ARG's senior credit facilities. For the year ended December 31, 2003, GWI reported record net income of $28.7 million, a 12.2% increase over $25.6 million of net income in 2002. Net income for 2003 was composed of $18.1 million (62.9%) from North America, $10.4 million (36.1%) from Australia, and $0.3 million (1.0%) from South America. Diluted earnings per share increased 10.3% to $1.61 in 2003, with 17.8 million shares outstanding, compared to $1.46 per share in 2002, with 17.6 million shares outstanding. GWI also announced that its Board of Directors has approved a three for two split of the Company's common stock. The stock split will be effected in the form of a 50% common stock dividend, payable March 18, 2004, to shareholders of record as of February 27, 2004. The number of shares of GWI's Convertible Preferred Stock will automatically adjust due to its anti-dilution provisions. (Per share amounts have not been adjusted for the stock split.) In the fourth quarter of 2003, GWI's North American revenue increased 9.5% to $61.5 million compared with $56.2 million in the fourth quarter of 2002. Of this $5.4 million increase in revenue, $3.4 million was same-railroad growth, $1.8 million was due to the appreciation of the Canadian dollar, $0.9 million was from the start-up of a new rail line in Oregon, offset by a decline of $0.7 million from the depreciation of the Mexican peso. North American operating income was $8.3 million in the fourth quarter of 2003 compared with $9.8 million of operating income in the fourth quarter of 2002. Operating income in the fourth quarter of 2003 included a net gain of $0.2 million on the sale of rail assets, compared with a net gain of $2.8 million on the sale of rail assets in the fourth quarter of 2002. GWI's North American operating ratio was 86.6% in the fourth quarter of 2003, which includes the 0.4% impact of asset sales, compared with an operating ratio of 82.6% in the fourth quarter of 2002, which includes the 4.9% impact of asset sales. In Australia, ARG's revenue increased 45.8% to US$74.6 million in the fourth quarter of 2003 compared with US$51.2 million in the fourth quarter of 2002. ARG's operating income in the fourth quarter of 2003 was US$18.6 million compared with operating income of US$7.5 million in the fourth quarter of 2002, which includes a US$2.0 million charge for restructuring its workforce. ARG's operating ratio was 75.0% in the fourth quarter of 2003 compared with 85.3% in the fourth quarter of 2002, which includes a negative 3.9% impact from the restructuring charge. Equity income from ARG in the fourth quarter of 2003 was US$3.5 million, which includes a $0.9 million charge from the write-off of unamortized financing fees and a US$0.6 million tax benefit. This compares with equity income of US$1.2 in the fourth quarter of 2002, which includes a US$0.7 million cost from the workforce restructuring and a US$0.9 million tax benefit. In comparing the fourth quarter of 2003 with the fourth quarter of 2002, the Australian dollar appreciated 31.3%. For the twelve months ended December 31, 2003, GWI's North American operations generated Free Cash Flow of $26.7 million (defined as Cash from Operations of $47.6 million less Cash used in Investing, net of the Cost of Acquisitions of $20.9 million) compared with $9.7 million of Free Cash Flow (defined as Cash from Operations of $27.6 million less Cash used in Investing, net of the Cost of Acquisitions of $17.9 million) in 2002. Mortimer B. Fuller III, Chairman and Chief Executive Officer of GWI, commented, "Our fourth quarter results were in-line with expectations, although earnings were stronger than expected in Australia and slightly weaker in North America. In Australia, grain trains for the 2003-04 harvest began operating at full capacity in December, we successfully started up operations for a major new contract in New South Wales, and nickel-related shipments were strong. In North America, maintenance at two power plant customers, one in Illinois and one in Mexico, temporarily affected shipments of coal and petroleum products. Meanwhile shipments of metals and autos remained weak in New York-Pennsylvania, although we have seen some improvement in the early part of 2004." Mr. Fuller continued, "The acquisition of the Georgia-Pacific railroads was completed on December 31st and we are successfully integrating those operations. When our outlook for these new properties is combined with our positive outlook for Australia, we are optimistic about GWI's results for 2004. The stock split underscores our favorable long term view and highlights our ongoing effort to improve the liquidity of our common stock." As previously announced, GWI's conference call to discuss financial results for the fourth quarter will be held today at 11:00AM (Eastern Standard Time). The dial-in number for the teleconference is (888) 428-4473 or the call may be accessed live over the Internet (listen only) at http://www.firstcallevents.com/service/ajwz397983151gf12.html. An audio replay of the conference call will be accessible at Genesee & Wyoming's website (www.gwrr.com) starting this afternoon. To access the replay, click on the Investors tab. 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 8,000 miles of owned and leased track and over an additional 3,000 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, 2003 2002 2003 2002 REVENUES $61,529 $56,167 $244,827 $209,540 OPERATING EXPENSES 53,278 46,386 208,522 177,533 INCOME FROM OPERATIONS 8,251 9,781 36,305 32,007 INTEREST EXPENSE (1,961) (2,987) (8,646) (8,139) OTHER INCOME, NET 219 221 986 726 INCOME BEFORE INCOME TAXES AND EQUITY EARNINGS 6,509 7,015 28,645 24,594 PROVISION FOR INCOME TAXES 2,308 2,766 10,567 8,761 INCOME BEFORE EQUITY EARNINGS 4,201 4,249 18,078 15,833 EQUITY IN NET INCOME OF INTERNATIONAL AFFILIATES: AUSTRALIAN RAILROAD GROUP 3,512 1,246 10,371 8,487 SOUTH AMERICA 158 264 270 1,287 NET INCOME 7,871 5,759 28,719 25,607 IMPACT OF PREFERRED STOCK OUTSTANDING 301 293 1,270 1,172 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $7,570 $5,466 $27,449 $24,435 BASIC EARNINGS PER SHARE: NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $0.50 $0.37 $1.81 $1.66 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 15,251 14,850 15,133 14,704 DILUTED EARNINGS PER SHARE: NET INCOME $0.43 $0.33 $1.61 $1.46 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 18,170 17,661 17,845 17,585 GENESEE & WYOMING INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) December 31, December 31, ASSETS 2003 2002 CURRENT ASSETS: Cash and cash equivalents $11,118 $11,028 Accounts receivable, net 53,897 54,527 Materials and supplies 5,204 5,468 Prepaid expenses and other 6,204 7,447 Deferred income tax assets, net 3,010 2,484 Total current assets 79,433 80,954 PROPERTY AND EQUIPMENT, net 320,668 264,728 INVESTMENT IN UNCONSOLIDATED AFFILIATES 119,866 81,287 GOODWILL 24,522 24,174 INTANGIBLE ASSETS, net 74,913 53,504 OTHER ASSETS, net 10,093 10,212 Total assets $629,495 $514,859 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term debt $6,589 $6,116 Accounts payable 57,587 49,482 Accrued expenses 13,907 11,555 Total current liabilities 78,083 67,153 LONG-TERM DEBT, less current portion 151,433 119,301 DEFERRED INCOME TAX LIABILITIES, net 41,840 31,686 DEFERRED ITEMS - grants from governmental agencies 42,667 42,509 DEFERRED GAIN - sale/leaseback 3,982 4,448 OTHER LONG-TERM LIABILITIES 14,843 13,039 MINORITY INTEREST 3,365 3,122 REDEEMABLE CONVERTIBLE PREFERRED STOCK 23,994 23,980 TOTAL STOCKHOLDERS' EQUITY 269,288 209,621 Total liabilities and stockholders' equity $629,495 $514,859 GENESEE & WYOMING INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Year Ended December 31, 2003 2002 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $28,719 $25,607 Adjustments to reconcile net income to net cash provided by operating activities- Depreciation and amortization 15,471 13,569 Deferred income taxes 9,660 6,430 Net gain on sale and impairment of assets (87) (3,140) Write off of deferred financing fees from early extinguishment of debt -- 597 Equity earnings of unconsolidated international affiliates (10,641) (9,774) Minority interest expense 243 278 Tax benefit realized upon exercise of stock options 1,123 1,058 Valuation adjustment of split dollar life insurance asset (366) 555 Changes in assets and liabilities, net of effect of acquisitions - Accounts receivable 3,986 (8,270) Materials and supplies 325 241 Prepaid expenses and other 999 (581) Accounts payable and accrued expenses (4,886) (1,178) Other assets and liabilities, net 3,055 2,176 Net cash provided by operating activities 47,601 27,568 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment, net of proceeds from government grants (18,934) (20,272) Locomotive upgrade project (4,076) (2,015) Purchase of Chattahoochee Industrial Railroad, Arkansas, Louisiana and Mississippi Railroad and Fordyce & Princeton Railroad Companies (55,636) - Purchase of Utah Railway Company - (55,680) Purchase of Emons Transportation Group, Inc., net of cash received - (29,449) Cash received from unconsolidated international affiliates 132 263 Proceeds from disposition of property and equipment 1,941 4,113 Net cash used in investing activities (76,573) (103,040) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on long-term borrowings (159,608) (214,438) Proceeds from issuance of long-term debt 186,500 276,081 Payment of debt issuance costs -- (4,578) Proceeds from employee stock purchases 2,862 3,089 Purchase of treasury stock (316) (36) Dividend on Redeemable Convertible Preferred Stock (1,000) (1,000) Net cash provided by financing activities 28,438 59,118 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 624 (1,350) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 90 (17,704) CASH AND CASH EQUIVALENTS, beginning of period 11,028 28,732 CASH AND CASH EQUIVALENTS, end of period $11,118 $11,028 GENESEE & WYOMING INC. AND SUBSIDIARIES Selected Consolidated Financial Information Three Months Ended December 31, 2003 and 2002 (dollars in thousands) (Unaudited) Three Months Ended December 31, 2003 2002 % of % of Amount Revenue Amount Revenue Revenues: Freight $45,848 74.5% $41,364 73.6% Non-freight 15,681 25.5% 14,803 26.4% Total revenues $61,529 100.0% $56,167 100.0% Operating Expense Comparison: Natural Classification Labor and benefits $22,447 36.5% $20,704 36.9% Equipment rents 5,247 8.5% 4,837 8.6% Purchased services 4,031 6.6% 4,535 8.1% Depreciation and amortization 4,033 6.6% 3,657 6.5% Diesel fuel 4,600 7.5% 4,311 7.7% Casualties and insurance 4,156 6.8% 2,539 4.5% Materials 3,367 5.5% 3,769 6.7% Net gain on sale and impairment of assets (228) -0.4% (2,760) -4.9% Other expenses 5,625 9.0% 4,794 8.5% Total operating expenses $53,278 86.6% $46,386 82.6% Functional Classification Transportation $22,263 36.2% $19,040 33.9% Maintenance of ways and structures 6,418 10.4% 5,653 10.1% Maintenance of equipment 9,514 15.5% 9,673 17.2% General and administrative 11,278 18.3% 11,123 19.8% Net gain on sale and impairment of assets (228) -0.4% (2,760) -4.9% Depreciation and amortization 4,033 6.6% 3,657 6.5% Total operating expenses $53,278 86.6% $46,386 82.6% GENESEE & WYOMING INC. AND SUBSIDIARIES Selected Consolidated Financial Information Years Ended December 31, 2003 and 2002 (dollars in thousands) (Unaudited) Year Ended December 31, 2003 2002 % of % of Amount Revenue Amount Revenue Revenues: Freight $182,567 74.6% $157,289 75.1% Non-freight 62,260 25.4% 52,251 24.9% Total revenues $244,827 100.0% $209,540 100.0% Operating Expense Comparison: Natural Classification Labor and benefits $87,315 35.7% $77,778 37.1% Equipment rents 18,409 7.5% 17,776 8.5% Purchased services 17,766 7.3% 15,471 7.4% Depreciation and amortization 15,471 6.3% 13,569 6.5% Diesel fuel 18,325 7.5% 13,368 6.4% Casualties and insurance 13,831 5.6% 10,592 5.1% Materials 15,189 6.2% 13,047 6.2% Net gain on sale and impairment of assets (87) 0.0% (3,140) -1.5% Other expenses 22,303 9.1% 19,072 9.0% Total operating expenses $208,522 85.2% $177,533 84.7% Functional Classification Transportation $84,268 34.4% $63,612 30.4% Maintenance of ways and structures 25,969 10.6% 22,950 11.0% Maintenance of equipment 36,695 15.0% 38,236 18.2% General and administrative 46,206 18.9% 42,306 20.1% Net gain on sale and impairment of assets (87) 0.0% (3,140) -1.5% Depreciation and amortization 15,471 6.3% 13,569 6.5% Total operating expenses $208,522 85.2% $177,533 84.7% GENESEE & WYOMING INC. AND SUBSIDIARIES North American Railroad Freight Revenue, Carloads and Average Revenue Per Carload Comparison by Commodity Group Three Months Ended December 31, 2003 and 2002 (dollars in thousands, except average revenue per carload) Three Months Ended Three Months Ended December 31, 2003 December 31, 2002 Average Average Revenue Revenue Freight Per Freight Per Commodity Group Revenues Carloads Carload Revenues Carloads Carload Coal, Coke & Ores $8,962 41,945 $214 $9,302 43,996 $211 Paper 7,651 18,322 418 6,790 16,917 401 Petroleum Products 5,705 7,765 735 4,987 7,172 695 Minerals & Stone 5,462 13,880 394 4,492 12,032 373 Metals 4,494 14,516 310 3,986 14,684 271 Lumber & Forest Products 4,317 13,285 325 3,438 9,724 354 Farm & Food Products 3,934 10,901 361 3,031 8,312 365 Chemicals-Plastics 2,858 5,886 486 2,465 5,575 442 Autos & Auto Parts 1,424 3,471 410 1,596 4,018 397 Intermodal 375 1,183 317 339 1,300 261 Other 666 2,827 236 938 3,411 275 Totals $45,848 133,981 342 $41,364 127,141 325 GENESEE & WYOMING INC. AND SUBSIDIARIES North American Railroad Freight Revenue, Carloads and Average Revenue Per Carload Comparison by Commodity Group Years Ended December 31, 2003 and 2002 (dollars in thousands, except average revenue per carload) Year Ended Year Ended December 31, 2003 December 31, 2002 Average Average Revenue Revenue Freight Per Freight Per Commodity Group Revenues Carloads Carload Revenues Carloads Carload Coal, Coke & Ores $37,881 167,363 $226 $28,685 136,044 $211 Paper 30,939 74,662 414 25,711 64,494 399 Petroleum Products 24,455 31,798 769 20,655 29,479 701 Minerals & Stone 22,350 57,841 386 21,236 50,844 418 Metals 17,078 58,145 294 15,993 57,846 276 Lumber & Forest Products 17,093 53,793 318 12,828 36,265 354 Farm & Food Products 12,133 32,589 372 10,158 27,378 371 Chemicals-Plastics 11,067 23,517 471 9,523 19,949 477 Autos & Auto Parts 5,775 14,235 406 6,996 17,130 408 Intermodal 1,574 5,518 285 1,302 5,387 242 Other 2,222 10,292 216 4,202 15,527 271 Totals $182,567 529,753 345 $157,289 460,343 342 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, 2003 2002 2003 2002 REVENUES $74,583 $51,159 $249,571 $210,575 OPERATING EXPENSES 55,936 41,614 194,089 160,654 RESTRUCTURING COSTS - 2,010 267 2,583 BID COSTS - - - 867 TOTAL OPERATING EXPENSES 55,936 43,624 194,356 164,104 INCOME FROM OPERATIONS 18,647 7,535 55,215 46,471 INTEREST EXPENSE (11,120) (6,207) (33,877) (24,859) OTHER INCOME, NET 857 321 3,271 886 INCOME BEFORE TAX 8,384 1,649 24,609 22,498 PROVISION (BENEFIT) FOR INCOME TAX 1,361 (844) 3,866 5,524 NET INCOME $7,023 $2,493 $20,743 $16,974 Australian Railroad Group Pty. Ltd. is a 50%-owned joint venture of Genesee & Wyoming Inc. AUSTRALIAN RAILROAD GROUP PTY. LTD. CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) (Unaudited - U.S. GAAP) December 31, 2003 December 31, 2002 ASSETS CURRENT ASSETS: Cash and cash equivalents $26,618 $5,882 Accounts receivable, net 47,764 30,315 Materials and supplies 10,033 7,985 Prepaid expenses and other 3,069 2,061 Total current assets 87,484 46,243 PROPERTY AND EQUIPMENT, net 478,808 402,286 DEFERRED INCOME TAX ASSETS, net 80,193 10,592 RESTRICTED CASH - 53,380 OTHER ASSETS, net 5,476 4,224 Total assets $651,961 $516,725 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term debt $- $133,263 Accounts payable 32,299 25,202 Accrued expenses 10,011 4,161 Current income tax liabilities - 1,672 Total current liabilities 42,310 164,298 LONG-TERM DEBT 367,892 195,039 DEFERRED INCOME TAX LIABILITIES, net 14,271 2,498 OTHER LONG-TERM LIABILITIES 2,031 1,031 FAIR VALUE OF INTEREST RATE SWAPS 9,133 16,621 SUBORDINATED NOTES 11,562 8,642 Total liabilities 447,199 388,129 TOTAL STOCKHOLDERS' EQUITY 204,762 128,596 Total liabilities and stockholders' equity $651,961 $516,725 Australian Railroad Group Pty. Ltd. is a 50%-owned joint venture of 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, 2003 2002 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $20,743 $16,974 Adjustments to reconcile net income to net cash provided by operating activities- Depreciation and amortization 23,443 17,191 Deferred income taxes 11,282 3,665 Gain on disposition of property (2,081) (314) Changes in assets and liabilities (8,093) (7,743) Net cash provided by operating activities 45,294 29,773 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment (35,775) (28,423) Proceeds from disposition of property and equipment 6,924 1,752 Transfer from (to)restricted funds on deposit 69,978 (46,957) Net cash provided by (used in) investing activities 41,127 (73,628) CASH FLOWS FROM FINANCING ACTIVITIES: Payments on borrowings (430,385) Proceeds from borrowings 360,493 38,990 Net cash (used in) provided by financing activities (69,892) 38,990 EFFECT OF EXCHANGE RATE DIFFERENCES ON CASH AND CASH EQUIVALENTS 4,207 839 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 20,736 (4,026) CASH AND CASH EQUIVALENTS, beginning of period 5,882 9,908 CASH AND CASH EQUIVALENTS, end of period $26,618 $5,882 Australian Railroad Group Pty. Ltd. is a 50%-owned joint venture of Genesee & Wyoming Inc. AUSTRALIAN RAILROAD GROUP PTY. LTD. Selected Consolidated Financial Information Three Months Ended December 31, 2003 and 2002 (U.S. dollars in thousands) (Unaudited - U.S. GAAP) Three Months Ended December 31, 2003 2002 % of % of Amount Revenue Amount Revenue Revenues: Freight $63,748 85.5% $41,942 82.0% Non-freight and Alice Springs construction 10,835 14.5% 9,217 18.0% Total railroad revenues $74,583 100.0% $51,159 100.0% Operating Expenses: Natural Classification Labor and benefits $14,304 19.2% $10,616 20.8% Equipment rents 529 0.7% 311 0.6% Purchased services 16,813 22.5% 13,581 26.5% Depreciation and amortization 6,503 8.7% 5,038 9.9% Diesel fuel 7,291 9.8% 4,726 9.2% Casualties and insurance 2,124 2.9% 1,548 3.0% Materials 3,231 4.3% 2,441 4.8% Net gain on sale and impairment of assets (1,265) -1.7% (55) -0.1% Other expenses 6,406 8.6% 5,418 10.6% Total operating expenses $55,936 75.0% $43,624 85.3% Functional Classification Transportation $23,951 32.1% $15,717 30.7% Maintenance of ways and structures 9,629 12.9% 9,024 17.6% Maintenance of equipment 6,927 9.3% 7,162 14.0% General and administrative 10,191 13.7% 6,738 13.2% Net gain on sale and impairment of assets (1,265) -1.7% (55) -0.1% Depreciation and amortization 6,503 8.7% 5,038 9.9% Total operating expenses $55,936 75.0% $43,624 85.3% Australian Railroad Group Pty. Ltd. is a 50%-owned joint venture of Genesee & Wyoming Inc. AUSTRALIAN RAILROAD GROUP PTY. LTD. Selected Consolidated Financial Information Years Ended December 31, 2003 and 2002 (U.S. dollars in thousands) (Unaudited - U.S. GAAP) Year Ended December 31, 2003 2002 % of % of Amount Revenue Amount Revenue Revenues: Freight $206,923 82.9% $175,440 83.3% Non-freight and Alice Springs construction 42,648 17.1% 35,135 16.7% Total railroad revenues $249,571 100.0% $210,575 100.0% Operating Expenses: Natural Classification Labor and benefits $47,337 19.0% $39,320 18.7% Equipment rents 1,733 0.7% 1,118 0.5% Purchased services 60,096 24.1% 49,386 23.4% Depreciation and amortization 23,443 9.4% 17,191 8.2% Diesel fuel 22,656 9.1% 17,038 8.1% Casualties and insurance 8,568 3.4% 10,541 5.0% Materials 11,635 4.6% 7,530 3.6% Net gain on sale and impairment of assets (2,081) -0.8% (314) -0.2% Other expenses 20,969 8.4% 22,294 10.6% Total operating expenses $194,356 77.9% $164,104 77.9% Functional Classification Transportation $76,747 30.8% $63,254 30.0% Maintenance of ways and structures 35,514 14.2% 27,680 13.2% Maintenance of equipment 26,057 10.4% 23,187 11.0% General and administrative 34,676 13.9% 33,106 15.7% Net gain on sale and impairment of assets (2,081) -0.8% (314) -0.2% Depreciation and amortization 23,443 9.4% 17,191 8.2% Total operating expenses $194,356 77.9% $164,104 77.9% Australian Railroad Group Pty. Ltd. is a 50%-owned joint venture of Genesee & Wyoming Inc. AUSTRALIAN RAILROAD GROUP PTY. LTD. Australian Railroad Freight Revenue, Carloads and Average Revenue Per Carload Comparison by Commodity Group Three Months Ended December 31, 2003 and 2002 (U.S. dollars in thousands, except average revenue per carload) (Unaudited) Three Months Ended Three Months Ended December 31, 2003 December 31, 2002 Average Average Revenue Revenue Freight Per Freight Per Commodity Group Revenues Carloads Carload Revenues Carloads Carload Grain $20,416 54,093 $377 $11,560 38,053 $304 Other Ores and Minerals 14,813 28,680 516 10,020 25,489 393 Iron Ore 10,598 47,461 223 5,940 43,093 138 Alumina 4,779 39,026 122 3,529 37,574 94 Bauxite 3,295 30,435 108 2,596 32,503 80 Hook and Pull (Haulage) 2,412 7,191 335 2,458 5,527 445 Gypsum 788 11,066 71 505 10,055 50 Other 6,647 15,836 420 5,334 15,497 344 Total $63,748 233,788 273 $41,942 207,791 202 Australian Railroad Group Pty. Ltd. is a 50%-owned joint venture of Genesee & Wyoming Inc. AUSTRALIAN RAILROAD GROUP PTY. LTD. Australian Railroad Freight Revenue, Carloads and Average Revenue Per Carload Comparison by Commodity Group Years Ended December 31, 2003 and 2002 (U.S. dollars in thousands, except average revenue per carload) (Unaudited) Year Ended Year Ended December 31, 2003 December 31, 2002 Average Average Revenue Revenue Freight Per Freight Per Commodity Group Revenues Carloads Carload Revenues Carloads Carload Grain $61,125 158,462 $386 $53,590 177,651 $302 Other Ores and Minerals 48,782 107,257 455 38,075 99,816 381 Iron Ore 36,238 179,711 202 27,038 177,619 152 Alumina 16,459 153,685 107 13,828 151,756 91 Bauxite 11,363 126,865 90 10,125 127,892 79 Hook and Pull (Haulage) 5,498 13,337 412 8,343 24,628 339 Gypsum 2,915 45,548 64 2,327 42,389 55 Other 24,543 62,865 390 22,114 63,724 347 Total $206,923 847,730 244 $175,440 865,475 203 Australian Railroad Group Pty. Ltd. is a 50%-owned joint venture of Genesee & Wyoming Inc. SOURCE Genesee & Wyoming Inc. -0- 02/11/2004 /CONTACT: John C. Hellmann, Chief Financial Officer, Genesee & Wyoming Inc., 203-629-3722/ /Web site: http://www.gwrr.com / (GWR) CO: Genesee & Wyoming Inc. ST: Connecticut IN: TRN SU: ERN CCA -----END PRIVACY-ENHANCED MESSAGE-----