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
10, 2015
Genesee & Wyoming Inc.
(Exact
name of registrant as specified in its charter)
Delaware |
001-31456 |
06-0984624 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
20 West Avenue, Darien, Connecticut |
06820 |
(Address of principal executive offices) |
(Zip Code) |
Registrant's telephone number, including area code: (203) 202-8900
Not
Applicable
(Former name or former address, if changed since
last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02 Results of Operations and Financial Condition.
On February 10, 2015, Genesee & Wyoming Inc. issued a press release reporting financial results for the fourth quarter of 2014. A copy of the press release is attached hereto as Exhibit 99.1. The attached Exhibit 99.1 is furnished in its entirety pursuant to this Item 2.02 and is incorporated into this Item 2.02 by reference.
ITEM 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. | Exhibit | |
Exhibit 99.1 | Press release, dated February 10, 2015, announcing results for the fourth quarter of 2014. |
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. |
||||
|
||||
Date: |
February 10, 2015 |
By: |
/s/ Timothy J. Gallagher |
|
Name: |
Timothy J. Gallagher |
|||
Title: |
Chief Financial Officer |
EXHIBIT INDEX
Exhibit No. |
Exhibit |
|
Exhibit 99.1 |
Press release, dated February 10, 2015, announcing results for the fourth quarter of 2014. |
Exhibit 99.1
Genesee & Wyoming Reports Results for the Fourth Quarter of 2014
DARIEN, Conn.--(BUSINESS WIRE)--February 10, 2015--Genesee & Wyoming Inc. (G&W) (NYSE:GWR)
Fourth Quarter Highlights
Comments on Fourth Quarter
Jack Hellmann, President and CEO of G&W, commented, “Our financial results for the fourth quarter of 2014 were solid, as our North American operations performed well thanks to a good U.S. economy, which more than offset weakness in our Australian operations. In the fourth quarter, G&W’s revenues increased 6%, our operating ratio improved 3.1 percentage points to 72.7%, and our adjusted diluted EPS increased 19.1%.” (1)
“In North America, our operating income increased 28% in the fourth quarter despite weaker than expected petroleum products shipments, and our North American operating ratio improved 3.4 percentage points to 74%. In Australia, our operating income declined 4% due to weaker shipments from both iron ore and intermodal customers, although effective cost controls resulted in an Australian operating ratio of 67%.”
Comments on Full Year 2014 and 2015
Jack Hellmann continued, “After a slow start to 2014 due to severe winter weather, G&W’s pre-tax income increased approximately 17% for the final nine months of 2014 led by the relative strength of the U.S. economy and the successful integration of the Rapid City, Pierre & Eastern Railroad (RCP&E). In addition, our cash flow was at record levels in 2014 as we generated free cash flow before business investments of $296 million.” (1)
“In 2015, we expect continued growth from our North American operations, which represents approximately 80% of our revenue, partially offset by a contraction in our Australian operations, which represents approximately 20% of our revenue, due to the closure of several iron ore mines. Overall we expect mid-teens growth in G&W’s pre-tax income in 2015, and we also continue to evaluate acquisition and investment opportunities worldwide.”
Fourth Quarter Financial Results
G&W reported net income in the fourth quarter of 2014 of $87.6 million, compared with net income of $58.1 million in the fourth quarter of 2013. Excluding the net impact of certain items affecting comparability between periods as discussed below, G&W’s adjusted net income in the fourth quarter of 2014 was $64.0 million, compared with adjusted net income of $53.0 million in the fourth quarter of 2013. (1)
G&W’s reported diluted EPS in the fourth quarter of 2014 were $1.53 with 57.1 million weighted average shares outstanding, compared with diluted EPS in the fourth quarter of 2013 of $1.03 with 56.8 million weighted average shares outstanding. Excluding the net impact of certain items affecting comparability discussed below, G&W’s adjusted diluted EPS in the fourth quarter of 2014 were $1.12 with 57.1 million weighted average shares outstanding, compared with adjusted diluted EPS in the fourth quarter of 2013 of $0.94 with 56.8 million weighted average shares outstanding. (1)
In the fourth quarter of 2014 and 2013, 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).
Diluted | ||||||||||||||||||
Income/(Loss) | After-Tax Net | Earnings/(Loss) | ||||||||||||||||
Before Taxes | Income/(Loss) | Per Common | ||||||||||||||||
Impact | Impact | Share Impact | ||||||||||||||||
Three Months Ended December 31, 2014 |
||||||||||||||||||
Business development and related costs | $ | (1.6 | ) | $ | (1.0 | ) | $ | (0.02 | ) | |||||||||
Net gain on sale of assets | $ | 1.7 | $ | 1.0 | $ | 0.02 | ||||||||||||
2014 Short Line Tax Credit | $ | — | $ | 27.0 | $ | 0.47 | ||||||||||||
Application of full year effective tax rate to Q1 - Q3 2014 results |
$ | — | $ | (3.5 | ) | $ | (0.06 | ) | ||||||||||
|
||||||||||||||||||
Three Months Ended December 31, 2013 |
||||||||||||||||||
Business development and related costs | $ | (1.2 | ) | $ | (0.7 | ) | $ | (0.01 | ) | |||||||||
RailAmerica integration/acquisition costs | $ | (1.0 | ) | $ | (0.6 | ) | $ | (0.01 | ) | |||||||||
Net gain on sale of assets | $ | 1.3 | $ | 0.8 | $ | 0.01 | ||||||||||||
Valuation allowance on FTC | $ | — | $ | (2.0 | ) | $ | (0.03 | ) | ||||||||||
2013 Short Line Tax Credit | $ | — | $ | 7.6 | $ | 0.13 | ||||||||||||
Explanation of Items Affecting Comparability
In December 2014, the U.S. Short Line Tax Credit (which had previously expired on December 31, 2013) was extended for fiscal year 2014. In the fourth quarter of 2014, G&W recorded a tax benefit of $27.0 million associated with the extension of the Short Line Tax Credit, which included $19.6 million for the first three quarters of 2014 and $7.4 million for the fourth quarter of 2014. In addition, net income and diluted EPS for the fourth quarter of 2014 were reduced by approximately $3.5 million and $0.06 per share, respectively, due to the application of the full year 2014 effective tax rate to the results of the first three quarters of 2014.
In the fourth quarter of 2014, G&W’s results also included business development and related costs of $1.6 million and net gain on sale of assets of $1.7 million. In the fourth quarter of 2013, G&W results included $1.2 million of business development and related costs, $1.0 million of RailAmerica integration and acquisition-related costs, net gain on asset sales of $1.3 million, a valuation allowance on foreign tax credits (FTC) generated in prior years of $2.0 million and a $7.6 million benefit associated with the Short Line Tax Credit.
Results
In the fourth quarter of 2014, G&W’s total operating revenues increased $24.0 million, or 6.1%, to $415.6 million, compared with $391.7 million in the fourth quarter of 2013. The increase included $20.7 million in revenues from the newly established RCP&E. These revenues were partially offset by a $9.2 million decrease from the net depreciation of foreign currencies relative to the U.S. dollar. Excluding the net impact from foreign currency depreciation, G&W’s same railroad operating revenues, which exclude revenues from RCP&E, increased $12.5 million, or 3.3%.
G&W’s same railroad freight revenues in the fourth quarter of 2014 were $298.1 million, compared with $297.5 million in the fourth quarter of 2013. Excluding a $6.8 million decrease from the impact of foreign currency depreciation, G&W’s same railroad freight revenues increased by $7.4 million, or 2.6%.
G&W’s same railroad non-freight revenues in the fourth quarter of 2014 were $96.8 million, compared with $94.2 million in the fourth quarter of 2013. Excluding a $2.4 million decrease from the impact of foreign currency depreciation, G&W’s same railroad non-freight revenues increased by $5.0 million, or 5.5%.
G&W’s traffic in the fourth quarter of 2014 increased 38,235 carloads, or 8.1%, to 510,141 carloads. Excluding 16,542 carloads from RCP&E, same railroad traffic in the fourth quarter of 2014 increased 21,693 carloads, or 4.6%. The same railroad traffic increase was principally due to increases of 11,303 carloads of minerals and stone traffic (across most of G&W’s regions), 10,073 carloads of coal and coke traffic (primarily in the Midwest and Ohio Valley regions) and 4,321 carloads from G&W’s other commodity group (primarily in overhead Class I shipments), partially offset by a 6,023 carload decrease in agricultural products traffic (primarily due to decreased shipments in the Australia, Ohio Valley and Midwest regions, partially offset by increased shipments in the Central Region). All remaining traffic increased by a net 2,019 carloads.
G&W’s income from operations in the fourth quarter of 2014 was $113.5 million, compared with $94.8 million in the fourth quarter of 2013. G&W’s operating ratio in the fourth quarter of 2014 was 72.7%, compared with an operating ratio of 75.8% in the fourth quarter of 2013. Income from operations in the fourth quarter of 2014 included a net gain on sale of assets of $1.7 million, partially offset by business development and related costs of $1.6 million. Income from operations in the fourth quarter of 2013 included business development and related costs of $1.2 million as well as $1.0 million of RailAmerica integration and acquisition-related costs, partially offset by net gain on sale of assets of $1.3 million. Excluding these items, G&W’s adjusted income from operations increased $17.7 million, or 18.4%, to $113.4 million. G&W’s adjusted operating ratio improved 2.9 percentage points to 72.7% in the fourth quarter of 2014, compared with 75.6% in the fourth quarter of 2013. (1)
Consolidated Annual Results
G&W reported net income for the year ended December 31, 2014 of $261.0 million ($368.1 million pre-tax), compared with net income of $272.1 million ($318.4 million pre-tax) for the year ended December 31, 2013. Excluding the impact of certain items affecting comparability listed below, G&W’s adjusted net income for the year ended December 31, 2014 was $233.5 million ($372.8 million adjusted pre-tax), compared with adjusted net income of $214.7 million ($332.9 million adjusted pre-tax) for the year ended December 31, 2013. (1)
G&W’s diluted EPS for the year ended December 31, 2014 were $4.58 with 57.0 million weighted average shares outstanding, compared with diluted EPS of $4.79 with 56.7 million weighted average shares outstanding for the year ended December 31, 2013. Excluding certain items affecting comparability listed below, G&W’s adjusted diluted EPS for the year ended December 31, 2014 were $4.10 with 57.0 million weighted average shares outstanding, compared with adjusted diluted EPS of $3.78 with 56.7 million weighted average shares outstanding for the year ended December 31, 2013. (1)
G&W’s 2014 and 2013 annual results included certain items affecting comparability between the periods that are set forth in the following table (in millions, except per share amounts).
Diluted | ||||||||||||||||||
Income/(Loss) | After-Tax Net | Earnings/(Loss) | ||||||||||||||||
Before Taxes | Income/(Loss) | Per Common | ||||||||||||||||
Impact | Impact | Share Impact | ||||||||||||||||
Twelve Months Ended December 31, 2014 |
||||||||||||||||||
Business development and related costs | $ | (5.2 | ) | $ | (3.2 | ) | $ | (0.06 | ) | |||||||||
Credit facility refinancing-related costs | $ | (4.7 | ) | $ | (2.9 | ) | $ | (0.05 | ) | |||||||||
Net gain on sale of assets | $ | 5.1 | $ | 3.5 | $ | 0.06 | ||||||||||||
2014 Short Line Tax Credit | $ | — | $ | 27.0 | $ | 0.47 | ||||||||||||
RailAmerica-related tax benefit | $ | — | $ | 3.9 | $ | 0.07 | ||||||||||||
Adjustments for tax returns from previous fiscal year | $ | — | $ | (0.7 | ) | $ | (0.01 | ) | ||||||||||
Twelve Months Ended December 31, 2013 |
||||||||||||||||||
Business development and related costs | $ | (2.2 | ) | $ | (1.4 | ) | $ | (0.03 | ) | |||||||||
RailAmerica integration/acquisition costs | $ | (17.0 | ) | $ | (10.7 | ) | $ | (0.19 | ) | |||||||||
Net gain on sale of assets | $ | 4.7 | $ | 3.2 | $ | 0.06 | ||||||||||||
Retroactive Short Line Tax Credit for 2012 | $ | — | $ | 41.0 | $ | 0.72 | ||||||||||||
2013 Short Line Tax Credit | $ | — | $ | 25.9 | $ | 0.46 | ||||||||||||
Valuation allowance on FTC | $ | — | $ | (2.0 | ) | $ | (0.03 | ) | ||||||||||
Adjustment for tax returns from previous fiscal year | $ | — | $ | 1.4 | $ | 0.02 | ||||||||||||
Free Cash Flow (1) |
|||||||||||||
G&W’s free cash flow for the twelve months ended December 31, 2014 and 2013 was as follows (in millions): |
|||||||||||||
Twelve Months Ended | |||||||||||||
2014 | 2013 | ||||||||||||
Net cash provided by operating activities | $ | 491.5 | $ | 413.5 | |||||||||
Net cash used in investing activities, excluding new business investments |
(417.0 | ) | (174.5 | ) | |||||||||
Net cash used for acquisitions (a) |
221.5 | 12.9 | |||||||||||
Free cash flow before new business investments | 295.9 | 251.8 | |||||||||||
New business investments | (92.9 | ) | (34.2 | ) | |||||||||
Free cash flow (1) | $ | 203.1 | $ | 217.6 | |||||||||
(a) | The 2014 period primarily consisted of cash paid for the RCP&E acquisition. The 2013 period consisted of cash paid for expenses related to the integration of RailAmerica. |
Conference Call and Webcast Details
As previously announced, G&W’s conference call to discuss financial results for the fourth quarter of 2014 will be held on Tuesday, February 10, 2015, at 11 a.m. ET. 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, by selecting “Q4 2014 Genesee & Wyoming Earnings Conference Call Webcast.” 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. ET on February 10, 2015 by dialing (800) 475-6701 (or outside the U.S., dial 320-365-3844). The access code is 345263.
About G&W
G&W owns and operates short line and regional freight railroads in the United States, Australia, Canada, the Netherlands and Belgium. In addition, G&W operates the 1,400-mile Tarcoola to Darwin rail line, which links the Port of Darwin with the Australian interstate rail network in South Australia. Operations currently include 116 railroads organized in 11 regions, with more than 15,000 miles of owned and leased track, 5,200 employees and over 2,000 customers. We provide rail service at 37 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 2013 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 operating ratio, adjusted income before income taxes, adjusted net income, adjusted diluted earnings per common share 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 TWELVE MONTHS ENDED DECEMBER 31, 2014 AND 2013 | |||||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
OPERATING REVENUES | $ | 415,627 | $ | 391,668 | $ | 1,639,012 | $ | 1,568,643 | |||||||||||||||
OPERATING EXPENSES | 302,156 | 296,838 | 1,217,441 | 1,188,455 | |||||||||||||||||||
INCOME FROM OPERATIONS | 113,471 | 94,830 | 421,571 | 380,188 | |||||||||||||||||||
INTEREST INCOME | 88 | 986 | 1,445 | 3,971 | |||||||||||||||||||
INTEREST EXPENSE | (12,053 | ) | (14,542 | ) | (56,162 | ) | (67,894 | ) | |||||||||||||||
OTHER INCOME, NET | 820 | 592 | 1,259 | 2,122 | |||||||||||||||||||
INCOME BEFORE INCOME TAXES | 102,326 | 81,866 | 368,113 | 318,387 | |||||||||||||||||||
PROVISION FOR INCOME TAXES | (14,695 | ) | (23,778 | ) | (107,107 | ) | (46,296 | ) | |||||||||||||||
NET INCOME | 87,631 | 58,088 | 261,006 | 272,091 | |||||||||||||||||||
LESS: NET INCOME/(LOSS) ATTRIBUTABLE TO | |||||||||||||||||||||||
NONCONTROLLING INTEREST | 258 | (189 | ) | 251 | 795 | ||||||||||||||||||
LESS: SERIES A-1 PREFERRED STOCK DIVIDEND |
— | — | — | 2,139 | |||||||||||||||||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS |
$ | 87,373 | $ | 58,277 | $ | 260,755 | $ | 269,157 | |||||||||||||||
BASIC EARNINGS PER COMMON SHARE ATTRIBUTABLE TO GENESEE & WYOMING INC. COMMON STOCKHOLDERS |
$ | 1.57 | $ | 1.07 | $ | 4.71 | $ | 5.00 | |||||||||||||||
WEIGHTED AVERAGE SHARES - BASIC | 55,715 | 54,727 | 55,305 | 53,788 | |||||||||||||||||||
DILUTED EARNINGS PER COMMON SHARE ATTRIBUTABLE TO GENESEE & WYOMING INC. COMMON STOCKHOLDERS |
$ | 1.53 | $ | 1.03 | $ | 4.58 | $ | 4.79 | |||||||||||||||
WEIGHTED AVERAGE SHARES - DILUTED | 57,062 | 56,808 | 56,972 | 56,679 | |||||||||||||||||||
GENESEE & WYOMING INC. AND SUBSIDIARIES | |||||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||
AS OF DECEMBER 31, 2014 AND DECEMBER 31, 2013 | |||||||||||||
(in thousands) | |||||||||||||
(unaudited) | |||||||||||||
December 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
ASSETS | |||||||||||||
CURRENT ASSETS: | |||||||||||||
Cash and cash equivalents | $ | 59,727 | $ | 62,876 | |||||||||
Accounts receivable, net | 357,278 | 336,271 | |||||||||||
Materials and supplies | 30,251 | 31,295 | |||||||||||
Prepaid expenses and other | 24,176 | 41,766 | |||||||||||
Deferred income tax assets, net | 76,994 | 76,122 | |||||||||||
Total current assets | 548,426 | 548,330 | |||||||||||
PROPERTY AND EQUIPMENT, net | 3,788,482 | 3,440,744 | |||||||||||
GOODWILL | 628,815 | 630,462 | |||||||||||
INTANGIBLE ASSETS, net | 587,663 | 613,933 | |||||||||||
DEFERRED INCOME TAX ASSETS, net | 2,500 | 2,405 | |||||||||||
OTHER ASSETS, net | 39,867 | 83,947 | |||||||||||
Total assets | $ | 5,595,753 | $ | 5,319,821 | |||||||||
LIABILITIES AND EQUITY | |||||||||||||
CURRENT LIABILITIES: | |||||||||||||
Current portion of long-term debt | $ | 67,398 | $ | 84,366 | |||||||||
Accounts payable | 290,746 | 242,010 | |||||||||||
Accrued expenses | 106,094 | 130,132 | |||||||||||
Total current liabilities | 464,238 | 456,508 | |||||||||||
LONG-TERM DEBT, less current portion | 1,548,051 | 1,540,346 | |||||||||||
DEFERRED INCOME TAX LIABILITIES, net | 908,852 | 863,051 | |||||||||||
DEFERRED ITEMS - grants from outside parties | 279,286 | 267,098 | |||||||||||
OTHER LONG-TERM LIABILITIES | 37,346 | 43,748 | |||||||||||
TOTAL EQUITY | 2,357,980 | 2,149,070 | |||||||||||
Total liabilities and equity | $ | 5,595,753 | $ | 5,319,821 | |||||||||
GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2014 AND 2013 | ||||||||||||||
(in thousands) | ||||||||||||||
(unaudited) | ||||||||||||||
Twelve Months Ended | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||
Net income | $ | 261,006 | $ | 272,091 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 157,081 | 141,644 | ||||||||||||
Stock-based compensation | 12,858 | 16,951 | ||||||||||||
Excess tax benefits from share-based compensation | (6,221 | ) | (6,861 | ) | ||||||||||
Deferred income taxes | 70,131 | 10,229 | ||||||||||||
Net gain on sale of assets | (5,100 | ) | (4,677 | ) | ||||||||||
Insurance proceeds received | 5,527 | 11,053 | ||||||||||||
Changes in assets and liabilities which (used) provided cash, net of effect of acquisitions: |
||||||||||||||
Accounts receivable, net | (39,107 | ) | (47,780 | ) | ||||||||||
Materials and supplies | 2,600 | (1,839 | ) | |||||||||||
Prepaid expenses and other | 17,451 | 3,304 | ||||||||||||
Accounts payable and accrued expenses | 14,703 | 16,383 | ||||||||||||
Other assets and liabilities, net | 535 | 3,006 | ||||||||||||
Net cash provided by operating activities | 491,464 | 413,504 | ||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||
Purchase of property and equipment | (331,499 | ) | (249,318 | ) | ||||||||||
Grant proceeds from outside parties | 27,980 | 33,913 | ||||||||||||
Cash paid for acquisitions, net of cash acquired | (221,451 | ) | — | |||||||||||
Insurance proceeds for the replacement of assets | 8,029 | — | ||||||||||||
Proceeds from disposition of property and equipment | 7,096 | 6,687 | ||||||||||||
Net cash used in investing activities | (509,845 | ) | (208,718 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||
Principal payments on long-term borrowings, including capital leases | (538,035 | ) | (471,957 | ) | ||||||||||
Proceeds from issuance of long-term debt | 543,300 | 262,651 | ||||||||||||
Debt amendment costs | (3,880 | ) | (2,773 | ) | ||||||||||
Dividends paid on Series A-1 Preferred Stock | — | (2,139 | ) | |||||||||||
Proceeds from employee stock purchases | 11,819 | 12,510 | ||||||||||||
Excess tax benefits from share-based compensation | 6,221 | 6,861 | ||||||||||||
Treasury stock acquisitions | (4,186 | ) | (11,095 | ) | ||||||||||
Net cash provided by/(used in) financing activities | 15,239 | (205,942 | ) | |||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (7 | ) | (740 | ) | ||||||||||
DECREASE IN CASH AND CASH EQUIVALENTS | (3,149 | ) | (1,896 | ) | ||||||||||
CASH AND CASH EQUIVALENTS, beginning of period | 62,876 | 64,772 | ||||||||||||
CASH AND CASH EQUIVALENTS, end of period | $ | 59,727 | $ | 62,876 | ||||||||||
GENESEE & WYOMING INC. AND SUBSIDIARIES | |||||||||||||||||||||
SELECTED CONSOLIDATED FINANCIAL INFORMATION | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||
Three Months Ended December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Amount | % of Revenue | Amount | % of Revenue | ||||||||||||||||||
Revenues: |
|||||||||||||||||||||
Freight | $ | 316,415 | 76.1 | % | $ | 297,500 | 76.0 | % | |||||||||||||
Non-freight | 99,212 | 23.9 | % | 94,168 | 24.0 | % | |||||||||||||||
Total revenues | $ | 415,627 | 100.0 | % | $ | 391,668 | 100.0 | % | |||||||||||||
Operating Expense Comparison: |
|||||||||||||||||||||
Natural Classification |
|||||||||||||||||||||
Labor and benefits | $ | 116,826 | 28.1 | % | $ | 111,622 | 28.5 | % | |||||||||||||
Equipment rents | 20,864 | 5.0 | % | 19,609 | 5.0 | % | |||||||||||||||
Purchased services | 22,530 | 5.4 | % | 29,428 | 7.5 | % | |||||||||||||||
Depreciation and amortization | 40,951 | 9.9 | % | 35,926 | 9.2 | % | |||||||||||||||
Diesel fuel used in operations | 33,644 | 8.1 | % | 37,633 | 9.6 | % | |||||||||||||||
Casualties and insurance | 10,481 | 2.5 | % | 11,596 | 3.0 | % | |||||||||||||||
Materials | 21,629 | 5.2 | % | 15,728 | 4.0 | % | |||||||||||||||
Trackage rights | 13,322 | 3.2 | % | 13,854 | 3.5 | % | |||||||||||||||
Net gain on sale of assets | (1,656 | ) | (0.4 | )% | (1,258 | ) | (0.3 | )% | |||||||||||||
Other expenses | 23,565 | 5.7 | % | 22,700 | 5.8 | % | |||||||||||||||
Total operating expenses | $ | 302,156 | 72.7 | % | $ | 296,838 | 75.8 | % | |||||||||||||
Functional Classification |
|||||||||||||||||||||
Transportation | $ | 110,426 | 26.5 | % | $ | 116,126 | 29.6 | % | |||||||||||||
Maintenance of ways and structures | 43,555 | 10.5 | % | 41,114 | 10.5 | % | |||||||||||||||
Maintenance of equipment | 41,728 | 10.0 | % | 40,762 | 10.4 | % | |||||||||||||||
General and administrative | 59,258 | 14.3 | % | 56,496 | 14.4 | % | |||||||||||||||
Construction costs | 7,894 | 1.9 | % | 7,672 | 2.0 | % | |||||||||||||||
Net gain on sale of assets | (1,656 | ) | (0.4 | )% | (1,258 | ) | (0.3 | )% | |||||||||||||
Depreciation and amortization | 40,951 | 9.9 | % | 35,926 | 9.2 | % | |||||||||||||||
Total operating expenses | $ | 302,156 | 72.7 | % | $ | 296,838 | 75.8 | % | |||||||||||||
GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
SELECTED CONSOLIDATED FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||
Three Months Ended December 31, 2014 |
North American & European Operations |
Australian Operations | Total Operations | |||||||||||||||||||||||||||
Amount | % of Revenue | Amount | % of Revenue | Amount | % of Revenue | |||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||||||||
Freight | $ | 259,345 | 75.5 | % | $ | 57,070 | 78.9 | % | $ | 316,415 | 76.1 | % | ||||||||||||||||||
Non-freight | 83,989 | 24.5 | % | 15,223 | 21.1 | % | 99,212 | 23.9 | % | |||||||||||||||||||||
Total revenues | 343,334 | 100.0 | % | 72,293 | 100.0 | % | 415,627 | 100.0 | % | |||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||
Labor and benefits | 100,310 | 29.1 | % | 16,516 | 22.8 | % | 116,826 | 28.1 | % | |||||||||||||||||||||
Equipment rents | 18,433 | 5.4 | % | 2,431 | 3.4 | % | 20,864 | 5.0 | % | |||||||||||||||||||||
Purchased services | 16,264 | 4.7 | % | 6,266 | 8.7 | % | 22,530 | 5.4 | % | |||||||||||||||||||||
Depreciation and amortization | 34,162 | 10.0 | % | 6,789 | 9.4 | % | 40,951 | 9.9 | % | |||||||||||||||||||||
Diesel fuel used in operations | 28,497 | 8.3 | % | 5,147 | 7.1 | % | 33,644 | 8.1 | % | |||||||||||||||||||||
Casualties and insurance | 8,797 | 2.6 | % | 1,684 | 2.3 | % | 10,481 | 2.5 | % | |||||||||||||||||||||
Materials | 18,974 | 5.5 | % | 2,655 | 3.7 | % | 21,629 | 5.2 | % | |||||||||||||||||||||
Trackage rights | 8,138 | 2.4 | % | 5,184 | 7.2 | % | 13,322 | 3.2 | % | |||||||||||||||||||||
Net gain on sale of assets | (1,461 | ) | (0.4 | )% | (195 | ) | (0.3 | )% | (1,656 | ) | (0.4 | )% | ||||||||||||||||||
Other expenses | 21,385 | 6.2 | % | 2,180 | 3.0 | % | 23,565 | 5.7 | % | |||||||||||||||||||||
Total operating expenses | 253,499 | 73.8 | % | 48,657 | 67.3 | % | 302,156 | 72.7 | % | |||||||||||||||||||||
Income from operations | $ | 89,835 | $ | 23,636 | $ | 113,471 | ||||||||||||||||||||||||
Carloads | 455,785 | 54,356 | 510,141 | |||||||||||||||||||||||||||
Net expenditures for additions to property & equipment |
$ | 68,020 | $ | 9,523 | $ | 77,543 | ||||||||||||||||||||||||
Three Months Ended December 31, 2013 |
North American & European Operations |
Australian Operations | Total Operations | |||||||||||||||||||||||||||
Amount | % of Revenue | Amount | % of Revenue | Amount | % of Revenue | |||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||||||||
Freight | $ | 230,844 | 74.8 | % | $ | 66,656 | 80.1 | % | $ | 297,500 | 76.0 | % | ||||||||||||||||||
Non-freight | 77,613 | 25.2 | % | 16,555 | 19.9 | % | 94,168 | 24.0 | % | |||||||||||||||||||||
Total revenues | 308,457 | 100.0 | % | 83,211 | 100.0 | % | 391,668 | 100.0 | % | |||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||
Labor and benefits | 95,840 | 31.1 | % | 15,782 | 18.9 | % | 111,622 | 28.5 | % | |||||||||||||||||||||
Equipment rents | 17,122 | 5.5 | % | 2,487 | 3.0 | % | 19,609 | 5.0 | % | |||||||||||||||||||||
Purchased services | 16,131 | 5.2 | % | 13,297 | 16.0 | % | 29,428 | 7.5 | % | |||||||||||||||||||||
Depreciation and amortization | 29,039 | 9.4 | % | 6,887 | 8.3 | % | 35,926 | 9.2 | % | |||||||||||||||||||||
Diesel fuel used in operations | 29,923 | 9.7 | % | 7,710 | 9.3 | % | 37,633 | 9.6 | % | |||||||||||||||||||||
Casualties and insurance | 7,939 | 2.6 | % | 3,657 | 4.4 | % | 11,596 | 3.0 | % | |||||||||||||||||||||
Materials | 14,897 | 4.8 | % | 831 | 1.0 | % | 15,728 | 4.0 | % | |||||||||||||||||||||
Trackage rights | 8,216 | 2.7 | % | 5,638 | 6.8 | % | 13,854 | 3.5 | % | |||||||||||||||||||||
Net gain on sale of assets | (1,462 | ) | (0.5 | )% | 204 | 0.2 | % | (1,258 | ) | (0.3 | )% | |||||||||||||||||||
Other expenses | 20,630 | 6.7 | % | 2,070 | 2.5 | % | 22,700 | 5.8 | % | |||||||||||||||||||||
Total operating expenses | 238,275 | 77.2 | % | 58,563 | 70.4 | % | 296,838 | 75.8 | % | |||||||||||||||||||||
Income from operations | $ | 70,182 | $ | 24,648 | $ | 94,830 | ||||||||||||||||||||||||
Carloads | 415,067 | 56,839 | 471,906 | |||||||||||||||||||||||||||
Net expenditures for additions to property & equipment |
$ | 58,342 | $ | 10,506 | $ | 68,848 |
GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
RAILROAD FREIGHT REVENUES, CARLOADS AND AVERAGE REVENUES PER CARLOAD | ||||||||||||||||||||||||||||||||
COMPARISON BY COMMODITY GROUP | ||||||||||||||||||||||||||||||||
(dollars in thousands, except average revenues per carload) | ||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended December 31, 2014 | North American & European Operations | Australian Operations | Total Operations | |||||||||||||||||||||||||||||
Commodity Group | Freight Revenues | Carloads |
Average Revenues Per Carload |
Freight Revenues | Carloads |
Average Revenues Per Carload |
Freight Revenues | Carloads |
Average Revenues Per Carload |
|||||||||||||||||||||||
Agricultural Products | $ | 34,511 | 56,612 | $ | 610 | $ | 5,657 | 9,312 | $ | 607 | $ | 40,168 | 65,924 | $ | 609 | |||||||||||||||||
Chemicals & Plastics | 34,461 | 43,153 | 799 | — | — | — | 34,461 | 43,153 | 799 | |||||||||||||||||||||||
Metals | 31,744 | 45,122 | 704 | — | — | — | 31,744 | 45,122 | 704 | |||||||||||||||||||||||
Metallic Ores* | 4,414 | 5,619 | 786 | 26,581 | 14,347 | 1,853 | 30,995 | 19,966 | 1,552 | |||||||||||||||||||||||
Coal & Coke | 31,469 | 93,047 | 338 | — | — | — | 31,469 | 93,047 | 338 | |||||||||||||||||||||||
Minerals & Stone | 31,273 | 51,231 | 610 | 2,141 | 14,047 | 152 | 33,414 | 65,278 | 512 | |||||||||||||||||||||||
Pulp & Paper | 29,854 | 44,447 | 672 | — | — | — | 29,854 | 44,447 | 672 | |||||||||||||||||||||||
Intermodal** | 57 | 542 | 105 | 22,323 | 16,575 | 1,347 | 22,380 | 17,117 | 1,307 | |||||||||||||||||||||||
Lumber & Forest Products | 20,334 | 33,549 | 606 | — | — | — | 20,334 | 33,549 | 606 | |||||||||||||||||||||||
Petroleum Products | 15,694 | 26,249 | 598 | 368 | 75 | 4,907 | 16,062 | 26,324 | 610 | |||||||||||||||||||||||
Food or Kindred Products | 9,383 | 15,937 | 589 | — | — | — | 9,383 | 15,937 | 589 | |||||||||||||||||||||||
Autos & Auto Parts | 5,883 | 9,432 | 624 | — | — | — | 5,883 | 9,432 | 624 | |||||||||||||||||||||||
Waste | 4,793 | 10,076 | 476 | — | — | — | 4,793 | 10,076 | 476 | |||||||||||||||||||||||
Other | 5,475 | 20,769 | 264 | — | — | — | 5,475 | 20,769 | 264 | |||||||||||||||||||||||
Totals | $ | 259,345 | 455,785 | $ | 569 | $ | 57,070 | 54,356 | $ | 1,050 | $ | 316,415 | 510,141 | $ | 620 | |||||||||||||||||
Three Months Ended December 31, 2013 | North American & European Operations | Australian Operations | Total Operations | |||||||||||||||||||||||||||||
Commodity Group | Freight Revenues | Carloads | Average Revenues Per Carload | Freight Revenues | Carloads |
Average Revenues Per Carload |
Freight Revenues | Carloads |
Average Revenues Per Carload |
|||||||||||||||||||||||
Agricultural Products | $ | 24,075 | 48,361 | $ | 498 | $ | 8,652 | 13,466 | $ | 643 | $ | 32,727 | 61,827 | $ | 529 | |||||||||||||||||
Chemicals & Plastics | 30,668 | 39,088 | 785 | — | — | — | 30,668 | 39,088 | 785 | |||||||||||||||||||||||
Metals | 31,517 | 42,636 | 739 | — | — | — | 31,517 | 42,636 | 739 | |||||||||||||||||||||||
Metallic Ores* | 4,669 | 5,333 | 875 | 29,817 | 15,430 | 1,932 | 34,486 | 20,763 | 1,661 | |||||||||||||||||||||||
Coal & Coke | 28,880 | 82,960 | 348 | — | — | — | 28,880 | 82,960 | 348 | |||||||||||||||||||||||
Minerals & Stone | 21,122 | 39,463 | 535 | 1,819 | 10,624 | 171 | 22,941 | 50,087 | 458 | |||||||||||||||||||||||
Pulp & Paper | 29,066 | 42,928 | 677 | — | — | — | 29,066 | 42,928 | 677 | |||||||||||||||||||||||
Intermodal** | 218 | 2,404 | 91 | 25,980 | 17,243 | 1,507 | 26,198 | 19,647 | 1,333 | |||||||||||||||||||||||
Lumber & Forest Products | 19,200 | 32,375 | 593 | — | — | — | 19,200 | 32,375 | 593 | |||||||||||||||||||||||
Petroleum Products | 16,069 | 27,677 | 581 | 388 | 76 | 5,105 | 16,457 | 27,753 | 593 | |||||||||||||||||||||||
Food or Kindred Products | 8,607 | 14,916 | 577 | — | — | — | 8,607 | 14,916 | 577 | |||||||||||||||||||||||
Autos & Auto Parts | 6,748 | 9,512 | 709 | — | — | — | 6,748 | 9,512 | 709 | |||||||||||||||||||||||
Waste | 5,546 | 10,999 | 504 | — | — | — | 5,546 | 10,999 | 504 | |||||||||||||||||||||||
Other | 4,459 | 16,415 | 272 | — | — | — | 4,459 | 16,415 | 272 | |||||||||||||||||||||||
Totals | $ | 230,844 | 415,067 | $ | 556 | $ | 66,656 | 56,839 | $ | 1,173 | $ | 297,500 | 471,906 | $ | 630 | |||||||||||||||||
* Includes carload and intermodal units |
||||||||||||||||||||||||||||||||
** Represents intermodal units |
GENESEE & WYOMING INC. AND SUBSIDIARIES | |||||||||||||||||||||
SELECTED CONSOLIDATED FINANCIAL INFORMATION | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||
Twelve Months Ended December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Amount | % of Revenue | Amount | % of Revenue | ||||||||||||||||||
Revenues: |
|||||||||||||||||||||
Freight | $ | 1,251,941 | 76.4 | % | $ | 1,177,364 | 75.1 | % | |||||||||||||
Non-freight | 387,071 | 23.6 | % | 391,279 | 24.9 | % | |||||||||||||||
Total revenues | $ | 1,639,012 | 100.0 | % | $ | 1,568,643 | 100.0 | % | |||||||||||||
Operating Expense Comparison: |
|||||||||||||||||||||
Natural Classification |
|||||||||||||||||||||
Labor and benefits | $ | 471,713 | 28.8 | % | $ | 441,312 | 28.1 | % | |||||||||||||
Equipment rents | 82,730 | 5.0 | % | 77,595 | 4.9 | % | |||||||||||||||
Purchased services | 98,704 | 6.0 | % | 122,584 | 7.8 | % | |||||||||||||||
Depreciation and amortization | 157,081 | 9.6 | % | 141,644 | 9.0 | % | |||||||||||||||
Diesel fuel used in operations | 149,047 | 9.1 | % | 147,172 | 9.4 | % | |||||||||||||||
Casualties and insurance | 41,568 | 2.5 | % | 38,564 | 2.5 | % | |||||||||||||||
Materials | 78,624 | 4.8 | % | 76,454 | 4.9 | % | |||||||||||||||
Trackage rights | 53,783 | 3.3 | % | 50,911 | 3.2 | % | |||||||||||||||
Net gain on sale of assets | (5,100 | ) | (0.3 | )% | (4,677 | ) | (0.3 | )% | |||||||||||||
Other expenses | 89,291 | 5.5 | % | 96,896 | 6.3 | % | |||||||||||||||
Total operating expenses | $ | 1,217,441 | 74.3 | % | $ | 1,188,455 | 75.8 | % | |||||||||||||
Functional Classification |
|||||||||||||||||||||
Transportation | $ | 462,272 | 28.2 | % | $ | 443,552 | 28.3 | % | |||||||||||||
Maintenance of ways and structures | 174,716 | 10.7 | % | 164,641 | 10.5 | % | |||||||||||||||
Maintenance of equipment | 173,212 | 10.6 | % | 164,349 | 10.5 | % | |||||||||||||||
General and administrative | 231,725 | 14.1 | % | 239,927 | 15.3 | % | |||||||||||||||
Construction costs | 23,535 | 1.4 | % | 39,019 | 2.5 | % | |||||||||||||||
Net gain on sale of assets | (5,100 | ) | (0.3 | )% | (4,677 | ) | (0.3 | )% | |||||||||||||
Depreciation and amortization | 157,081 | 9.6 | % | 141,644 | 9.0 | % | |||||||||||||||
Total operating expenses | $ | 1,217,441 | 74.3 | % | $ | 1,188,455 | 75.8 | % | |||||||||||||
GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
SELECTED CONSOLIDATED FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||
Twelve Months Ended December 31, 2014 |
North American & European Operations |
Australian Operations | Total Operations | |||||||||||||||||||||||||||
Amount | % of Revenue | Amount | % of Revenue | Amount | % of Revenue | |||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||||||||
Freight | $ | 1,008,236 | 76.0 | % | $ | 243,705 | 77.8 | % | $ | 1,251,941 | 76.4 | % | ||||||||||||||||||
Non-freight | 317,594 | 24.0 | % | 69,477 | 22.2 | % | 387,071 | 23.6 | % | |||||||||||||||||||||
Total revenues | 1,325,830 | 100.0 | % | 313,182 | 100.0 | % | 1,639,012 | 100.0 | % | |||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||
Labor and benefits | 400,497 | 30.2 | % | 71,216 | 22.7 | % | 471,713 | 28.8 | % | |||||||||||||||||||||
Equipment rents | 72,757 | 5.5 | % | 9,973 | 3.2 | % | 82,730 | 5.0 | % | |||||||||||||||||||||
Purchased services | 64,696 | 4.9 | % | 34,008 | 10.9 | % | 98,704 | 6.0 | % | |||||||||||||||||||||
Depreciation and amortization | 128,986 | 9.7 | % | 28,095 | 8.9 | % | 157,081 | 9.6 | % | |||||||||||||||||||||
Diesel fuel used in operations | 122,701 | 9.3 | % | 26,346 | 8.4 | % | 149,047 | 9.1 | % | |||||||||||||||||||||
Casualties and insurance | 30,669 | 2.3 | % | 10,899 | 3.5 | % | 41,568 | 2.5 | % | |||||||||||||||||||||
Materials | 70,968 | 5.4 | % | 7,656 | 2.4 | % | 78,624 | 4.8 | % | |||||||||||||||||||||
Trackage rights | 31,688 | 2.4 | % | 22,095 | 7.1 | % | 53,783 | 3.3 | % | |||||||||||||||||||||
Net gain on sale of assets | (4,668 | ) | (0.4 | )% | (432 | ) | (0.1 | )% | (5,100 | ) | (0.3 | )% | ||||||||||||||||||
Other expenses | 76,976 | 5.8 | % | 12,315 | 3.9 | % | 89,291 | 5.5 | % | |||||||||||||||||||||
Total operating expenses | 995,270 | 75.1 | % | 222,171 | 70.9 | % | 1,217,441 | 74.3 | % | |||||||||||||||||||||
Income from operations | $ | 330,560 | $ | 91,011 | $ | 421,571 | ||||||||||||||||||||||||
Carloads | 1,779,157 | 227,894 | 2,007,051 | |||||||||||||||||||||||||||
Net expenditures for additions to property & equipment |
$ | 280,657 | $ | 25,064 | $ | 305,721 | ||||||||||||||||||||||||
Twelve Months Ended December 31, 2013 |
North American & European Operations |
Australian Operations | Total Operations | |||||||||||||||||||||||||||
Amount | % of Revenue | Amount | % of Revenue | Amount | % of Revenue | |||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||||||||
Freight | $ | 917,971 | 73.8 | % | $ | 259,393 | 79.9 | % | $ | 1,177,364 | 75.1 | % | ||||||||||||||||||
Non-freight | 325,876 | 26.2 | % | 65,403 | 20.1 | % | 391,279 | 24.9 | % | |||||||||||||||||||||
Total revenues | 1,243,847 | 100.0 | % | 324,796 | 100.0 | % | 1,568,643 | 100.0 | % | |||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||
Labor and benefits | 374,935 | 30.1 | % | 66,377 | 20.4 | % | 441,312 | 28.1 | % | |||||||||||||||||||||
Equipment rents | 67,296 | 5.4 | % | 10,299 | 3.2 | % | 77,595 | 4.9 | % | |||||||||||||||||||||
Purchased services | 70,339 | 5.7 | % | 52,245 | 16.1 | % | 122,584 | 7.8 | % | |||||||||||||||||||||
Depreciation and amortization | 114,542 | 9.2 | % | 27,102 | 8.4 | % | 141,644 | 9.0 | % | |||||||||||||||||||||
Diesel fuel used in operations | 116,204 | 9.3 | % | 30,968 | 9.5 | % | 147,172 | 9.4 | % | |||||||||||||||||||||
Casualties and insurance | 28,185 | 2.3 | % | 10,379 | 3.2 | % | 38,564 | 2.5 | % | |||||||||||||||||||||
Materials | 73,724 | 5.9 | % | 2,730 | 0.8 | % | 76,454 | 4.9 | % | |||||||||||||||||||||
Trackage rights | 29,595 | 2.4 | % | 21,316 | 6.6 | % | 50,911 | 3.2 | % | |||||||||||||||||||||
Net gain on sale of assets | (4,491 | ) | (0.4 | )% | (186 | ) | (0.1 | )% | (4,677 | ) | (0.3 | )% | ||||||||||||||||||
Other expenses | 89,396 | 7.3 | % | 7,500 | 2.3 | % | 96,896 | 6.3 | % | |||||||||||||||||||||
Total operating expenses | 959,725 | 77.2 | % | 228,730 | 70.4 | % | 1,188,455 | 75.8 | % | |||||||||||||||||||||
Income from operations | $ | 284,122 | $ | 96,066 | $ | 380,188 | ||||||||||||||||||||||||
Carloads | 1,649,914 | 236,098 | 1,886,012 | |||||||||||||||||||||||||||
Net expenditures for additions to property & equipment |
$ | 163,545 | $ | 51,860 | $ | 215,405 | ||||||||||||||||||||||||
GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
RAILROAD FREIGHT REVENUES, CARLOADS AND AVERAGE REVENUES PER CARLOAD | ||||||||||||||||||||||||||||||||
COMPARISON BY COMMODITY GROUP | ||||||||||||||||||||||||||||||||
(dollars in thousands, except average revenues per carload) | ||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||
Twelve Months Ended December 31, 2014 | North American & European Operations | Australian Operations | Total Operations | |||||||||||||||||||||||||||||
Commodity Group | Freight Revenues | Carloads | Average Revenues Per Carload | Freight Revenues | Carloads | Average Revenues Per Carload | Freight Revenues | Carloads | Average Revenues Per Carload | |||||||||||||||||||||||
Agricultural Products | $ | 121,265 | 210,316 | $ | 577 | $ | 32,003 | 54,184 | $ | 591 | $ | 153,268 | 264,500 | $ | 579 | |||||||||||||||||
Chemicals & Plastics | 136,492 | 169,160 | 807 | — | — | — | 136,492 | 169,160 | 807 | |||||||||||||||||||||||
Metals | 131,161 | 184,264 | 712 | — | — | — | 131,161 | 184,264 | 712 | |||||||||||||||||||||||
Metallic Ores* | 17,795 | 22,123 | 804 | 109,439 | 56,542 | 1,936 | 127,234 | 78,665 | 1,617 | |||||||||||||||||||||||
Coal & Coke | 126,377 | 355,762 | 355 | — | — | — | 126,377 | 355,762 | 355 | |||||||||||||||||||||||
Minerals & Stone | 112,999 | 194,335 | 581 | 8,921 | 53,407 | 167 | 121,920 | 247,742 | 492 | |||||||||||||||||||||||
Pulp & Paper | 117,299 | 174,942 | 671 | — | — | — | 117,299 | 174,942 | 671 | |||||||||||||||||||||||
Intermodal** | 390 | 3,442 | 113 | 91,895 | 63,475 | 1,448 | 92,285 | 66,917 | 1,379 | |||||||||||||||||||||||
Lumber & Forest Products | 82,271 | 136,768 | 602 | — | — | — | 82,271 | 136,768 | 602 | |||||||||||||||||||||||
Petroleum Products | 63,051 | 104,672 | 602 | 1,447 | 286 | 5,059 | 64,498 | 104,958 | 615 | |||||||||||||||||||||||
Food or Kindred Products | 35,534 | 60,741 | 585 | — | — | — | 35,534 | 60,741 | 585 | |||||||||||||||||||||||
Autos & Auto Parts | 23,619 | 34,470 | 685 | — | — | — | 23,619 | 34,470 | 685 | |||||||||||||||||||||||
Waste | 18,449 | 39,994 | 461 | — | — | — | 18,449 | 39,994 | 461 | |||||||||||||||||||||||
Other | 21,534 | 88,168 | 244 | — | — | — | 21,534 | 88,168 | 244 | |||||||||||||||||||||||
Totals | $ | 1,008,236 | 1,779,157 | $ | 567 | $ | 243,705 | 227,894 | $ | 1,069 | $ | 1,251,941 | 2,007,051 | $ | 624 | |||||||||||||||||
Twelve Months Ended December 31, 2013 | North American & European Operations | Australian Operations | Total Operations | |||||||||||||||||||||||||||||
Commodity Group | Freight Revenues | Carloads | Average Revenues Per Carload | Freight Revenues | Carloads | Average Revenues Per Carload | Freight Revenues | Carloads | Average Revenues Per Carload | |||||||||||||||||||||||
Agricultural Products | $ | 90,272 | 179,083 | $ | 504 | $ | 40,305 | 61,757 | $ | 653 | $ | 130,577 | 240,840 | $ | 542 | |||||||||||||||||
Chemicals & Plastics | 128,935 | 163,123 | 790 | — | — | — | 128,935 | 163,123 | 790 | |||||||||||||||||||||||
Metals | 127,769 | 175,636 | 727 | — | — | — | 127,769 | 175,636 | 727 | |||||||||||||||||||||||
Metallic Ores* | 16,602 | 20,231 | 821 | 109,326 | 52,135 | 2,097 | 125,928 | 72,366 | 1,740 | |||||||||||||||||||||||
Coal & Coke | 110,836 | 323,500 | 343 | — | — | — | 110,836 | 323,500 | 343 | |||||||||||||||||||||||
Minerals & Stone | 86,627 | 162,401 | 533 | 10,144 | 56,762 | 179 | 96,771 | 219,163 | 442 | |||||||||||||||||||||||
Pulp & Paper | 112,663 | 169,708 | 664 | — | — | — | 112,663 | 169,708 | 664 | |||||||||||||||||||||||
Intermodal** | 871 | 8,518 | 102 | 97,888 | 65,148 | 1,503 | 98,759 | 73,666 | 1,341 | |||||||||||||||||||||||
Lumber & Forest Products | 79,035 | 133,649 | 591 | — | — | — | 79,035 | 133,649 | 591 | |||||||||||||||||||||||
Petroleum Products | 63,493 | 108,605 | 585 | 1,730 | 296 | 5,845 | 65,223 | 108,901 | 599 | |||||||||||||||||||||||
Food or Kindred Products | 31,982 | 55,084 | 581 | — | — | — | 31,982 | 55,084 | 581 | |||||||||||||||||||||||
Autos & Auto Parts | 26,415 | 36,510 | 724 | — | — | — | 26,415 | 36,510 | 724 | |||||||||||||||||||||||
Waste | 22,750 | 43,166 | 527 | — | — | — | 22,750 | 43,166 | 527 | |||||||||||||||||||||||
Other | 19,721 | 70,700 | 279 | — | — | — | 19,721 | 70,700 | 279 | |||||||||||||||||||||||
Totals | $ | 917,971 | 1,649,914 | $ | 556 | $ | 259,393 | 236,098 | $ | 1,099 | $ | 1,177,364 | 1,886,012 | $ | 624 | |||||||||||||||||
* Includes carload and intermodal units |
||||||||||||||||||||||||||||||||
** Represents intermodal units |
||||||||||||||||||||||||||||||||
Non-GAAP Financial Measures
This earnings release contains references to adjusted income from operations, adjusted operating ratio, adjusted income before income taxes, adjusted net income, adjusted diluted earnings per common share, 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 and Adjusted Operating Ratios |
|||||||||||||
Three Months Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Operating revenues | $ | 415.6 | $ | 391.7 | |||||||||
Operating expenses | 302.2 | 296.8 | |||||||||||
Income from operations (a) | $ | 113.5 | $ | 94.8 | |||||||||
Operating ratio (b) | 72.7 | % | 75.8 | % | |||||||||
Operating expenses | $ | 302.2 | $ | 296.8 | |||||||||
Business development and related costs | (1.6 | ) | (1.2 | ) | |||||||||
RailAmerica integration/acquisition costs | — | (1.0 | ) | ||||||||||
Net gain on sale of assets | 1.7 | 1.3 | |||||||||||
Adjusted operating expenses | $ | 302.2 | $ | 295.9 | |||||||||
Adjusted income from operations | $ | 113.4 | $ | 95.7 | |||||||||
Adjusted operating ratio | 72.7 | % | 75.6 | % | |||||||||
(a) | Income from operations is calculated as operating revenues less operating expenses. |
(b) | Operating ratio is calculated as operating expenses divided by operating revenues. |
Adjusted Income Before Income Taxes, Adjusted Net Income and Adjusted Diluted Earnings Per Common Share |
||||||||||||||||
Three Months Ended December 31, 2014 |
Income Before Income Taxes |
Net Income |
Diluted Earnings Per Common Share |
|||||||||||||
As reported | $ | 102.3 | $ | 87.6 | $ | 1.53 | ||||||||||
Add back certain items: |
||||||||||||||||
Business development and related costs | 1.6 | 1.0 | 0.02 | |||||||||||||
Net gain on sale of assets | (1.7 | ) | (1.0 | ) | (0.02 | ) | ||||||||||
2014 Short Line Tax Credit | — | (27.0 | ) | (0.47 | ) | |||||||||||
Application of full year effective tax rate to Q1 - Q3 2014 results |
— | 3.5 | 0.06 | |||||||||||||
As adjusted | $ | 102.3 | $ | 64.0 | $ | 1.12 | ||||||||||
Three Months Ended December 31, 2013 |
Income Before Income Taxes |
Net Income |
Diluted Earnings Per Common Share |
|||||||||||||
As reported | $ | 81.9 | $ | 58.1 | $ | 1.03 | ||||||||||
Add back certain items: |
||||||||||||||||
Business development and related costs | 1.2 | 0.7 | 0.01 | |||||||||||||
RailAmerica integration/acquisition costs | 1.0 | 0.6 | 0.01 | |||||||||||||
Net gain on sale of assets | (1.3 | ) | (0.8 | ) | (0.01 | ) | ||||||||||
Valuation allowance on FTC | — | 2.0 | 0.03 | |||||||||||||
2013 Short Line Tax Credit | — | (7.6 | ) | (0.13 | ) | |||||||||||
As adjusted | $ | 82.8 | $ | 53.0 | $ | 0.94 | ||||||||||
Twelve Months Ended December 31, 2014 |
Income Before Income Taxes |
Net Income |
Diluted Earnings Per Common Share |
|||||||||||||
As reported | $ | 368.1 | $ | 261.0 | $ | 4.58 | ||||||||||
Add back certain items: |
||||||||||||||||
Business development and related costs | 5.2 | 3.2 | 0.06 | |||||||||||||
Credit facility refinancing-related costs | 4.7 | 2.9 | 0.05 | |||||||||||||
Net gain on sale of assets | (5.1 | ) | (3.5 | ) | (0.06 | ) | ||||||||||
2014 Short Line Tax Credit | — | (27.0 | ) | (0.47 | ) | |||||||||||
RailAmerica-related tax benefit | — | (3.9 | ) | (0.07 | ) | |||||||||||
Adjustments for tax returns from previous fiscal year | — | 0.7 | 0.01 | |||||||||||||
As adjusted | $ | 372.8 | $ | 233.5 | $ | 4.10 | ||||||||||
Twelve Months Ended December 31, 2013 |
Income Before Income Taxes |
Net Income |
Diluted Earnings/(Loss) Per Common Share |
||||||||||||||
As reported | $ | 318.4 | $ | 272.1 | $ | 4.79 | |||||||||||
Add back certain items: |
|||||||||||||||||
Business development and related costs | 2.2 | 1.4 | 0.03 | ||||||||||||||
RailAmerica integration/acquisition costs | 17.0 | 10.7 | 0.19 | ||||||||||||||
Net gain on sale of assets | (4.7 | ) |
(3.2 |
) | (0.06 | ) | |||||||||||
Retroactive Short Line Tax Credit for 2012 | — |
(41.0 |
) | (0.72 | ) | ||||||||||||
2013 Short Line Tax Credit | — |
(25.9 |
) | (0.46 | ) | ||||||||||||
Valuation allowance on FTC | — |
2.0 |
0.03 | ||||||||||||||
Adjustment for tax returns from previous fiscal year | — |
(1.4 |
) | (0.02 | ) | ||||||||||||
As adjusted | $ | 332.9 | $ | 214.7 | $ | 3.78 | |||||||||||
Free Cash Flow |
|||||||||||||||||
Twelve Months Ended December 31, |
|||||||||||||||||
2014 | 2013 | ||||||||||||||||
Net cash provided by operating activities |
$ |
491.5 |
$ |
413.5 | |||||||||||||
Net cash used in investing activities (a) | (509.8 | ) | (208.7 | ) | |||||||||||||
Net cash used for acquisitions | 221.5 | 12.9 | |||||||||||||||
Free cash flow |
$ |
203.1 |
|
$ |
217.6 | ||||||||||||
(a) | The twelve months ended December 31, 2014 and 2013 includes $92.9 million and $34.2 million, respectively, of new business investments. |
CONTACT:
G&W Corporate Communications
Michael
Williams, 1-203-202-8900
mwilliams@gwrr.com