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): November
1, 2016
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) |
(IRS 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 November 1, 2016, Genesee & Wyoming Inc. issued a press release reporting financial results for the third quarter of 2016. 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 November 1, 2016, announcing results for the third quarter of 2016. |
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: |
November 1, 2016 |
By: |
/s/ Timothy J. Gallagher |
Name: |
Timothy J. Gallagher |
||
Title: |
Chief Financial Officer |
EXHIBIT INDEX
Exhibit No. |
Exhibit |
|
Exhibit 99.1 |
Press release, dated November 1, 2016, announcing results for the third quarter of 2016. |
Exhibit 99.1
Genesee & Wyoming Reports Results for the Third Quarter of 2016
DARIEN, Conn.--(BUSINESS WIRE)--November 1, 2016--Genesee & Wyoming Inc. (G&W) (NYSE:GWR)
Third Quarter Consolidated Highlights
Third Quarter Segment Highlights
Jack Hellmann, President and CEO of G&W, commented, "Our financial results for the third quarter of 2016 were consistent with our expectations with reported diluted EPS of $0.98 and adjusted diluted EPS of $0.95. In North America, better than expected steam coal shipments combined with strong cost controls yielded a better than expected operating ratio of 71.9%. In Australia, financial results were in-line with our outlook as we continued to effectively manage costs in the weak commodity environment. In the U.K./Europe, our financial results in the first full quarter since we restructured the U.K. coal business were below our expectations for three reasons: congestion in the port of Felixstowe which weakened U.K. intermodal shipments; unscheduled reductions in U.K. infrastructure services; and weak performance from continental European intermodal."(1)
"Looking to year-end, our priorities by region are threefold. In North America, we remain focused on maximizing cost efficiency amidst an uneven economic environment. In Australia, we expect to close on the recently announced acquisition of Glencore Rail and the concurrent issuance of a 49% equity stake in our Australian subsidiary to Macquarie, in a transaction that yields a highly competitive Australian growth platform going forward. In the U.K./Europe, we continue to restructure the continental European business and to reduce costs in the U.K. Despite the weak third quarter, we see a clear path to improvement in the U.K./European segment as we finish the year and enter 2017."
"Over the past three months we have announced two important acquisitions, one in Australia, Glencore Rail (expected to close December 1), and one in North America, the Providence and Worcester (expected to close into a voting trust later today). In addition, we continue to be active with a significant pipeline of acquisition opportunities in multiple geographies for which we are maintaining close working relationships with potential financial partners. The broad reach of our global rail footprint is yielding an increasing number of contiguous or adjacent investment opportunities."
Financial Results
G&W's operating revenues decreased $45.3 million, or 8.3%, to $501.0 million in the third quarter of 2016, compared with $546.3 million in the third quarter of 2015. G&W's operating income in the third quarter of 2016 was $91.9 million, compared with $117.6 million in the third quarter of 2015. G&W's adjusted operating income in the third quarter of 2016 was $95.8 million, compared with $118.3 million in the third quarter of 2015.(1)
G&W's reported net income in the third quarter of 2016 was $56.8 million, compared with reported net income of $63.4 million in the third quarter of 2015. Excluding the net impact of certain items affecting comparability between periods discussed below, G&W's adjusted net income in the third quarter of 2016 was $55.4 million, compared with $63.7 million in the third quarter of 2015.(1)
G&W's reported diluted EPS in the third quarter of 2016 were $0.98 with 58.2 million weighted average shares outstanding, compared with reported diluted EPS in the third quarter of 2015 of $1.10 with 57.8 million weighted average shares outstanding. G&W's adjusted diluted EPS in the third quarter of 2016 were $0.95 with 58.2 million weighted average shares outstanding, compared with adjusted diluted EPS in the third quarter of 2015 of $1.10 with 57.8 million weighted average shares outstanding. G&W's adjusted diluted EPS excluding the Short Line Tax Credit in the third quarter of 2016 were $0.82 with 58.2 million weighted average shares outstanding, compared with adjusted diluted EPS in the third quarter of 2015 of $1.10 with 57.8 million weighted average shares outstanding.(1)
Items Affecting Comparability
In the third quarter of 2016 and 2015, G&W's results included certain items affecting comparability between the periods that are set forth in the following table (in millions, except per share amounts):
Income/(Loss) |
After-Tax Net |
Diluted |
|||||||||||||
Three Months Ended September 30, 2016 |
|||||||||||||||
Corporate development and related costs | $ | (4.3 | ) | $ | (3.1 | ) | $ | (0.05 | ) | ||||||
Restructuring costs | $ | (0.2 | ) | $ | (0.2 | ) | $ | — | |||||||
Net gain on sale of assets | $ | 0.5 | $ | 0.4 | $ | 0.01 | |||||||||
Impact of reduction in U.K. income tax rate | $ | — | $ | 4.3 | $ | 0.07 | |||||||||
Short Line Tax Credit | $ | — | $ | 7.8 | $ | 0.13 | |||||||||
Three Months Ended September 30, 2015 |
|||||||||||||||
Corporate development and related costs | $ | (2.0 | ) | $ | (1.3 | ) | $ | (0.02 | ) | ||||||
Net gain on sale of assets | $ | 1.2 | $ | 0.9 | $ | 0.02 | |||||||||
In the third quarter of 2016, G&W's results included corporate development and related costs of $4.3 million, primarily associated with the Glencore Rail and Providence and Worcester transactions, restructuring costs of $0.2 million and a net gain on the sale of assets of $0.5 million. The third quarter of 2016 also included an income tax benefit of $7.8 million associated with the U.S. Short Line Tax Credit, which was not in effect during the third quarter of 2015, as well as a tax benefit of $4.3 million associated with a reduction in the U.K. income tax rate, which was enacted in September 2016. The Short Line Tax Credit was extended retroactively in the fourth quarter of 2015 for calendar years 2015 and 2016.
In the third quarter of 2015, G&W's results included corporate development and related costs of $2.0 million, primarily related to the integration of Freightliner, and a net gain on the sale of assets of $1.2 million.
Third Quarter Results by Segment
Operating revenues from G&W's North American Operations decreased $4.4 million, or 1.4%, to $310.2 million in the third quarter of 2016, compared with $314.6 million in the third quarter of 2015. North American Operations revenues decreased primarily due to lower fuel surcharges and a decline in coal shipments.
North American Operations traffic decreased 17,572 carloads, or 4.2%, to 401,999 carloads in the third quarter of 2016. The traffic decrease was principally due to decreases of 8,169 carloads of coal and coke traffic (primarily in the Central, Northeast and Midwest regions), 3,549 carloads of pulp and paper traffic (primarily in the Southern, Canada and Northeast regions), 3,447 carloads of minerals and stone traffic (primarily in the Northeast Region), 2,529 carloads of metals traffic (primarily in the Southern, Coastal and Canada regions) and 2,257 carloads of other traffic (primarily in the Southern and Canada regions), partially offset by an increase of 3,014 carloads of agricultural products traffic (primarily in the Central and Pacific regions). All remaining traffic decreased by a net 635 carloads.
G&W's North American Operations had operating income of $87.2 million in the third quarter of 2016, compared with $90.6 million in the third quarter of 2015. The operating ratio for North American Operations was 71.9% in the third quarter of 2016, compared with an operating ratio of 71.2% in the third quarter of 2015. Adjusted operating income from G&W's North American Operations in the third quarter of 2016 was $87.8 million, compared with adjusted operating income of $90.7 million in the third quarter of 2015. The adjusted operating ratio for North American Operations was 71.7% in the third quarter of 2016, compared with an adjusted operating ratio of 71.2% in the third quarter of 2015.(1)
Operating revenues from G&W's Australian Operations decreased $6.9 million, or 11.2%, to $54.2 million in the third quarter of 2016, compared with $61.0 million in the third quarter of 2015. Excluding a $2.7 million increase due to the impact of foreign currency appreciation, Australian Operations revenues decreased $9.6 million, or 15.0%, primarily due to the loss of a fixed fee payment associated with a now closed iron ore mine that we previously served and lower metallic ores shipments.(2)
Australian Operations traffic decreased 5,000 carloads, or 10.3%, to 43,532 carloads in the third quarter of 2016. The traffic decrease was principally due to decreases of 2,818 carloads of agricultural product traffic, 878 carloads of metallic ores traffic, 657 carloads of minerals and stone traffic and 628 carloads of intermodal traffic.
G&W's Australian Operations had operating income of $4.4 million in the third quarter of 2016, compared with $15.0 million in the third quarter of 2015. The operating ratio for Australian Operations was 91.9% in the third quarter of 2016, compared with an operating ratio of 75.5% in the third quarter of 2015. Adjusted operating income from G&W's Australian Operations was $7.4 million in the third quarter of 2016, compared with adjusted operating income of $15.6 million in the third quarter of 2015. The adjusted operating ratio for Australian Operations was 86.3% in the third quarter of 2016, compared with an adjusted operating ratio of 74.4% in the third quarter of 2015.(1)
Operating revenues from G&W's U.K./European Operations decreased $34.1 million, or 20.0%, to $136.7 million in the third quarter of 2016, compared with $170.7 million in the third quarter of 2015. Excluding an $18.1 million decrease due to the impact of foreign currency depreciation, U.K./European revenues decreased $16.0 million, or 10.5%, primarily due to lower intermodal services and coal shipments.(2)
U.K./European Operations traffic decreased 10,264 carloads, or 3.4%, to 294,283 carloads in the third quarter of 2016. The traffic decrease was principally due to decreases of 8,402 carloads of coal and coke traffic (primarily in the U.K. and Poland) and 4,106 carloads of intermodal traffic (primarily in the U.K.), partially offset by an increase of 1,761 carloads of minerals and stone traffic.
G&W's U.K./European Operations had operating income of $0.3 million in the third quarter of 2016, compared with $12.0 million in the third quarter of 2015. The operating ratio for U.K./European Operations was 99.8% in the third quarter of 2016, compared with an operating ratio of 93.0% in the third quarter of 2015. Adjusted operating income from G&W's U.K./European Operations was $0.6 million in the third quarter of 2016, compared with adjusted operating income of $12.0 million in the third quarter of 2015. The adjusted operating ratio for U.K./European Operations was 99.5% in the third quarter of 2016, compared with an adjusted operating ratio of 93.0% in the third quarter of 2015.(1)
Free Cash Flow (1)
G&W's free cash flow for the nine months ended September 30, 2016 and 2015 was as follows (in millions):
Nine Months Ended | |||||||||||
September 30, | |||||||||||
2016 | 2015 | ||||||||||
Net cash provided by operating activities | $ | 303.6 | $ | 344.3 | |||||||
Net cash used in investing activities, excluding new business |
(108.7 | ) | (927.4 | ) | |||||||
Net cash used for acquisitions (a) | 1.3 | 786.3 | |||||||||
Free cash flow before new business investments | 196.1 | 203.1 | |||||||||
New business investments, net of grants from outside parties | (8.6 | ) | (58.6 | ) | |||||||
Free cash flow (1) | $ | 187.6 | $ | 144.5 | |||||||
(a) | The 2015 period primarily consisted of net cash used for the acquisition of Freightliner and Pinsly Arkansas as well as $32.0 million in cash paid for incremental expenses related to the purchase and integration of the acquisitions. | |
Conference Call and Webcast Details
As previously announced, G&W's conference call to discuss financial results for the third quarter of 2016 will be held on Tuesday, November 1, 2016, at 11 a.m. EDT. The dial-in number for the teleconference in the U.S. is (800) 230-1074; outside the U.S. is (612) 288-0337, or the call may be accessed live over the Internet (listen only) at www.gwrr.com/investors. Management will be referring to a slide presentation that will also be available at gwrr.com/investors. The webcast will be archived at www.gwrr.com/investors until the following quarter's earnings press release. Telephone replay is available for 30 days beginning at 1 p.m. EDT on November 1, 2016, by dialing (800) 475-6701 (or outside the U.S., dial 320-365-3844). The access code is 372822.
About G&W
G&W owns or leases 121 freight railroads worldwide that are organized in 10 operating regions with approximately 7,200 employees and more than 2,800 customers.
G&W subsidiaries provide rail service at more than 40 major ports in North America, Australia and Europe and perform contract coal loading and railcar switching for industrial customers.
From time to time, we may use our website as a channel of distribution of material company information. Financial and other material information regarding G&W is routinely posted on and accessible at www.gwrr.com/investors. In addition, you may automatically receive email alerts and other information about us by enrolling your email address in the "Email Alerts" section of www.gwrr.com/investors. The information contained on or connected to our Internet website is not deemed to be incorporated by reference in this press release or filed with the SEC.
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 integrate acquired businesses successfully or to realize the expected synergies associated with acquisitions; and others including, but not limited to, those noted in our 2015 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 operating income, adjusted operating ratio, adjusted net income, adjusted diluted earnings per common share (EPS) and free cash flow are non-GAAP financial measures and are not intended to replace financial measures calculated in accordance with GAAP. The information required by Item 10(e) of Regulation S-K under the Securities Act of 1933 and the Securities Exchange Act of 1934 and Regulation G under the Securities Exchange Act of 1934, including a reconciliation to their most directly comparable financial measures calculated in accordance with GAAP, is included in the tables attached to this press release. | |
2. | Foreign exchange impact is calculated by comparing the prior period results translated from local currency to U.S. dollars using current period exchange rates to the prior period results in U.S. dollars as reported. | |
GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015 | ||||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||
OPERATING REVENUES | $ | 501,002 | $ | 546,299 | $ | 1,484,993 | $ | 1,485,548 | ||||||||||||
OPERATING EXPENSES | 409,151 | 428,740 | 1,248,952 | 1,195,918 | ||||||||||||||||
OPERATING INCOME | 91,851 | 117,559 | 236,041 | 289,630 | ||||||||||||||||
INTEREST INCOME | 416 | 225 | 827 | 375 | ||||||||||||||||
INTEREST EXPENSE | (17,333 | ) | (17,464 | ) | (53,049 | ) | (48,744 | ) | ||||||||||||
LOSS ON SETTLEMENT OF FOREIGN CURRENCY |
— | — | — | (18,686 | ) | |||||||||||||||
OTHER INCOME/(LOSS), NET | 1,494 | (103 | ) | 2,947 | 545 | |||||||||||||||
INCOME BEFORE INCOME TAXES | 76,428 | 100,217 | 186,766 | 223,120 | ||||||||||||||||
PROVISION FOR INCOME TAXES | (19,643 | ) | (36,855 | ) | (54,563 | ) | (83,017 | ) | ||||||||||||
NET INCOME | $ | 56,785 | $ | 63,362 | $ | 132,203 | $ | 140,103 | ||||||||||||
BASIC EARNINGS PER COMMON SHARE |
||||||||||||||||||||
BASIC EARNINGS PER COMMON SHARE | $ | 0.99 | $ | 1.12 | $ | 2.31 | $ | 2.47 | ||||||||||||
WEIGHTED AVERAGE SHARES - BASIC | 57,266 | 56,819 | 57,160 | 56,673 | ||||||||||||||||
DILUTED EARNINGS PER COMMON SHARE |
||||||||||||||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | 0.98 | $ | 1.10 | $ | 2.28 | $ | 2.42 | ||||||||||||
WEIGHTED AVERAGE SHARES - DILUTED | 58,180 | 57,846 | 58,083 | 57,833 | ||||||||||||||||
GENESEE & WYOMING INC. AND SUBSIDIARIES | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||
AS OF SEPTEMBER 30, 2016 AND DECEMBER 31, 2015 | |||||||||
(in thousands) | |||||||||
(unaudited) | |||||||||
September 30, | December 31, | ||||||||
2016 | 2015 | ||||||||
ASSETS | |||||||||
CURRENT ASSETS: | |||||||||
Cash and cash equivalents | $ | 26,366 | $ | 35,941 | |||||
Accounts receivable, net | 366,121 | 382,458 | |||||||
Materials and supplies | 47,626 | 45,790 | |||||||
Prepaid expenses and other | 47,018 | 43,197 | |||||||
Total current assets | 487,131 | 507,386 | |||||||
PROPERTY AND EQUIPMENT, net | 4,209,583 | 4,215,063 | |||||||
GOODWILL | 824,957 | 826,575 | |||||||
INTANGIBLE ASSETS, net | 1,053,664 | 1,128,952 | |||||||
DEFERRED INCOME TAX ASSETS, net | 2,623 | 2,270 | |||||||
OTHER ASSETS, net | 37,928 | 22,836 | |||||||
Total assets | $ | 6,615,886 | $ | 6,703,082 | |||||
LIABILITIES AND EQUITY | |||||||||
CURRENT LIABILITIES: | |||||||||
Current portion of long-term debt | $ | 85,841 | $ | 75,966 | |||||
Accounts payable | 246,171 | 282,275 | |||||||
Accrued expenses | 163,893 | 169,586 | |||||||
Total current liabilities | 495,905 | 527,827 | |||||||
LONG-TERM DEBT, less current portion | 1,977,649 | 2,205,785 | |||||||
DEFERRED INCOME TAX LIABILITIES, net | 994,670 | 983,136 | |||||||
DEFERRED ITEMS - grants from outside parties | 302,223 | 292,198 | |||||||
OTHER LONG-TERM LIABILITIES | 185,749 | 174,675 | |||||||
TOTAL EQUITY | 2,659,690 | 2,519,461 | |||||||
Total liabilities and equity | $ | 6,615,886 | $ | 6,703,082 | |||||
GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015 | ||||||||||
(in thousands) | ||||||||||
(unaudited) | ||||||||||
Nine Months Ended | ||||||||||
September 30, | ||||||||||
2016 | 2015 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
Net income | $ | 132,203 | $ | 140,103 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 151,095 | 138,568 | ||||||||
Stock-based compensation | 13,835 | 10,341 | ||||||||
Excess tax benefits from share-based compensation | (25 | ) | (1,393 | ) | ||||||
Deferred income taxes | 25,088 | 46,795 | ||||||||
Net loss/(gain) on sale and impairment of assets | 11,993 | (1,981 | ) | |||||||
Insurance proceeds received | — | 103 | ||||||||
Loss on settlement of foreign currency forward purchase contracts | — | 18,686 | ||||||||
Changes in assets and liabilities which provided/(used) cash, net
of effect of |
||||||||||
Accounts receivable, net | (10,731 | ) | 52,847 | |||||||
Materials and supplies | (2,642 | ) | (2,325 | ) | ||||||
Prepaid expenses and other | (1,930 | ) | 14,929 | |||||||
Accounts payable and accrued expenses | (29,484 | ) | (71,446 | ) | ||||||
Other assets and liabilities, net | 14,156 | (970 | ) | |||||||
Net cash provided by operating activities from continuing operations | 303,558 | 344,257 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
Purchase of property and equipment | (159,523 | ) | (276,150 | ) | ||||||
Grant proceeds from outside parties | 29,952 | 31,456 | ||||||||
Cash paid for acquisitions, net of cash acquired | — | (735,556 | ) | |||||||
Net payment from settlement of foreign currency forward purchase
contracts related |
— | (18,686 | ) | |||||||
Insurance proceeds for the replacement of assets | 10,319 | 9,658 | ||||||||
Proceeds from disposition of property and equipment | 2,003 | 3,223 | ||||||||
Net cash used in investing activities | (117,249 | ) | (986,055 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Principal payments on revolving line-of-credit, long-term debt and
capital lease |
(501,087 | ) | (502,839 | ) | ||||||
Proceeds from revolving line-of-credit and long-term borrowings | 300,495 | 1,139,511 | ||||||||
Debt amendment/issuance costs | — | (9,622 | ) | |||||||
Proceeds from employee stock purchases | 5,969 | 5,478 | ||||||||
Excess tax benefits from share-based compensation | 25 | 1,393 | ||||||||
Treasury stock purchases | (3,065 | ) | (3,245 | ) | ||||||
Net cash (used in)/provided by financing activities | (197,663 | ) | 630,676 | |||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 1,779 | (9,632 | ) | |||||||
DECREASE IN CASH AND CASH EQUIVALENTS | (9,575 | ) | (20,754 | ) | ||||||
CASH AND CASH EQUIVALENTS, beginning of period | 35,941 | 59,727 | ||||||||
CASH AND CASH EQUIVALENTS, end of period | $ | 26,366 | $ | 38,973 | ||||||
GENESEE & WYOMING INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||
SELECTED CONSOLIDATED FINANCIAL INFORMATION | |||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||||||||||||||
Amount | % of Revenue | Amount | % of Revenue | Amount | % of Revenue | Amount | % of Revenue | ||||||||||||||||||||||||||||||||
Operating revenues: |
|||||||||||||||||||||||||||||||||||||||
Freight revenues | $ | 349,807 | 69.8 | % | $ | 378,936 | 69.4 | % | $ | 1,017,003 | 68.5 | % | $ | 1,051,760 | 70.8 | % | |||||||||||||||||||||||
Freight-related |
129,520 | 25.9 | % | 145,508 | 26.6 | % | 396,666 | 26.7 | % | 361,524 | 24.3 | % | |||||||||||||||||||||||||||
All other revenues | 21,675 | 4.3 | % | 21,855 | 4.0 | % | 71,324 | 4.8 | % | 72,264 | 4.9 | % | |||||||||||||||||||||||||||
Total operating revenues | $ | 501,002 | 100.0 | % | $ | 546,299 | 100.0 | % | $ | 1,484,993 | 100.0 | % | $ | 1,485,548 | 100.0 | % | |||||||||||||||||||||||
Operating expenses: |
|||||||||||||||||||||||||||||||||||||||
Labor and benefits(a) |
$ | 156,235 | 31.2 | % | $ | 158,675 | 29.1 | % | $ | 475,297 | 32.0 | % | $ | 456,089 | 30.7 | % | |||||||||||||||||||||||
Equipment rents | 36,778 | 7.3 | % | 44,630 | 8.2 | % | 113,634 | 7.7 | % | 110,145 | 7.3 | % | |||||||||||||||||||||||||||
Purchased services(b) | 50,991 | 10.2 | % | 55,291 | 10.1 | % | 149,125 | 10.0 | % | 135,849 | 9.2 | % | |||||||||||||||||||||||||||
Depreciation and |
50,841 | 10.2 | % | 48,303 | 8.8 | % | 151,095 | 10.2 | % | 138,568 | 9.3 | % | |||||||||||||||||||||||||||
Diesel fuel used in |
30,134 | 6.1 | % | 34,264 | 6.3 | % | 83,851 | 5.7 | % | 101,856 | 6.9 | % | |||||||||||||||||||||||||||
Electricity used in |
3,226 | 0.6 | % | 5,164 | 0.9 | % | 9,895 | 0.7 | % | 10,530 | 0.7 | % | |||||||||||||||||||||||||||
Casualties and |
9,252 | 1.9 | % | 11,466 | 2.1 | % | 28,814 | 1.9 | % | 30,027 | 2.0 | % | |||||||||||||||||||||||||||
Materials | 19,678 | 3.9 | % | 25,140 | 4.6 | % | 62,662 | 4.2 | % | 70,764 | 4.8 | % | |||||||||||||||||||||||||||
Trackage rights | 22,781 | 4.5 | % | 21,765 | 4.0 | % | 64,509 | 4.3 | % | 57,270 | 3.9 | % | |||||||||||||||||||||||||||
Net (gain)/loss on sale |
(524 | ) | (0.1 |
) |
% |
(1,174 | ) | (0.2 |
) |
% |
11,993 | 0.8 | % | (1,981 | ) | (0.1 |
) |
% |
|||||||||||||||||||||
Restructuring costs | 223 | — | % | — | — | % | 6,320 | 0.4 | % | — | — | % | |||||||||||||||||||||||||||
Other expenses(d) | 29,536 | 5.9 | % | 25,216 | 4.6 | % | 91,757 | 6.2 | % | 86,801 | 5.8 | % | |||||||||||||||||||||||||||
Total operating expenses | $ | 409,151 | 81.7 | % | $ | 428,740 | 78.5 | % | $ | 1,248,952 | 84.1 | % | $ | 1,195,918 | 80.5 | % | |||||||||||||||||||||||
(a) | Includes $0.3 million and $0.4 million corporate development and related costs for the three and nine months ended September 30, 2016, respectively. Includes $0.6 million and $2.3 million of severance costs for the three and nine months ended September 30, 2015, respectively. Includes $0.1 million corporate development and related costs for both the three and nine months ended September 30, 2015. | |
(b) | Includes $0.2 million corporate development and related costs for both the three and nine months ended September 30, 2015. | |
(c) | Includes an impairment charge of $13.0 million associated with an Australia iron ore customer entering into voluntary administration for the nine months ended September 30, 2016. | |
(d) | Includes the write-off of accounts receivable of $8.1 million associated with an Australia iron ore customer entering into voluntary administration for the nine months ended September 30, 2016. Includes $4.0 million and $6.9 million corporate development and related costs for the three and nine months ended September 30, 2016, respectively. Includes $1.0 million and $1.9 million corporate development and related costs for the three and nine months ended September 30, 2015, respectively. Includes $12.6 million in Freightliner acquisition costs for the nine months ended September 30, 2015. | |
GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||
NORTH AMERICAN OPERATIONS SELECTED CONSOLIDATED FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||||||||||
Amount |
% of |
Amount |
% of |
Amount |
% of |
Amount |
% of |
|||||||||||||||||||||||||||||
Operating revenues: |
||||||||||||||||||||||||||||||||||||
Freight revenues | $ | 232,247 | 74.9 | % | $ | 241,410 | 76.7 | % | $ | 681,154 | 74.5 | % | $ | 722,593 | 76.6 | % | ||||||||||||||||||||
Freight-related |
62,124 | 20.0 | % | 56,823 | 18.1 | % | 184,627 | 20.2 | % | 170,473 | 18.1 | % | ||||||||||||||||||||||||
All other revenues | 15,823 | 5.1 | % | 16,330 | 5.2 | % | 48,766 | 5.3 | % | 50,101 | 5.3 | % | ||||||||||||||||||||||||
Total operating revenues | $ | 310,194 | 100.0 | % | $ | 314,563 | 100.0 | % | $ | 914,547 | 100.0 | % | $ | 943,167 | 100.0 | % | ||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||||||||
Labor and benefits(a) | $ | 97,426 | 31.4 | % | $ | 93,887 | 29.8 | % | $ | 295,603 | 32.3 | % | $ | 303,635 | 32.2 | % | ||||||||||||||||||||
Equipment rents | 14,207 | 4.6 | % | 16,669 | 5.3 | % | 43,481 | 4.8 | % | 50,940 | 5.4 | % | ||||||||||||||||||||||||
Purchased services(b) | 15,207 | 4.9 | % | 17,263 | 5.5 | % | 47,171 | 5.2 | % | 46,612 | 4.9 | % | ||||||||||||||||||||||||
Depreciation and |
37,085 | 12.0 | % | 35,158 | 11.2 | % | 110,398 | 12.1 | % | 105,399 | 11.2 | % | ||||||||||||||||||||||||
Diesel fuel used in |
14,217 | 4.6 | % | 16,444 | 5.2 | % | 41,578 | 4.5 | % | 60,226 | 6.4 | % | ||||||||||||||||||||||||
Casualties and |
6,145 | 2.0 | % | 7,547 | 2.4 | % | 20,398 | 2.2 | % | 20,661 | 2.2 | % | ||||||||||||||||||||||||
Materials | 12,222 | 3.9 | % | 13,704 | 4.4 | % | 38,168 | 4.2 | % | 45,389 | 4.8 | % | ||||||||||||||||||||||||
Trackage rights | 9,047 | 2.9 | % | 6,023 | 1.9 | % | 26,799 | 2.9 | % | 18,816 | 2.0 | % | ||||||||||||||||||||||||
Net gain on sale |
(456 | ) | (0.1 | )% | (1,025 | ) | (0.3 | )% | (851 | ) | (0.1 | )% | (1,724 | ) | (0.2 | )% | ||||||||||||||||||||
Restructuring costs | 111 | — | % | — | — | % | 805 | 0.1 | % | — | — | % | ||||||||||||||||||||||||
Other expenses(c) | 17,830 | 5.7 | % | 18,329 | 5.8 | % | 54,843 | 6.0 | % | 68,947 | 7.3 | % | ||||||||||||||||||||||||
Total operating expenses | $ | 223,041 | 71.9 | % | $ | 223,999 | 71.2 | % | $ | 678,393 | 74.2 | % | $ | 718,901 | 76.2 | % | ||||||||||||||||||||
Operating income | $ | 87,153 | $ | 90,564 | $ | 236,154 | $ | 224,266 | ||||||||||||||||||||||||||||
Expenditures for |
$ | 30,343 | $ | 86,620 | $ | 95,282 | $ | 205,330 | ||||||||||||||||||||||||||||
(a) | Includes $0.1 million and $0.2 million corporate development and related costs for the three and nine months ended September 30, 2016, respectively. Includes $0.1 million corporate development and related costs for both the three and nine months ended September 30, 2015. | |
(b) | Includes $0.2 million corporate development and related costs for both the three and nine months ended September 30, 2015. | |
(c) |
Includes $1.0 million and $3.0 million corporate development and related costs for the three and nine months ended September 30, 2016, respectively. Includes $1.0 million and $1.9 million corporate development and related costs for the three and nine months ended September 30, 2015, respectively. Includes $12.6 million of Freightliner acquisition costs for the nine months ended September 30, 2015. |
|
GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||
AUSTRALIAN OPERATIONS SELECTED CONSOLIDATED FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||||||||||
Amount | % of Revenue | Amount |
% of |
Amount | % of Revenue | Amount |
% of |
|||||||||||||||||||||||||||||
Operating revenues: |
||||||||||||||||||||||||||||||||||||
Freight revenues | $ | 29,219 | 54.0 | % | $ | 32,780 | 53.7 | % | $ | 80,390 | 49.9 | % | $ | 118,602 | 63.2 | % | ||||||||||||||||||||
Freight-related |
23,523 | 43.4 | % | 26,206 | 43.0 | % | 76,142 | 47.2 | % | 62,243 | 33.1 | % | ||||||||||||||||||||||||
All other revenues | 1,408 | 2.6 | % | 2,027 | 3.3 | % | 4,699 | 2.9 | % | 6,918 | 3.7 | % | ||||||||||||||||||||||||
Total operating revenues | $ | 54,150 | 100.0 | % | $ | 61,013 | 100.0 | % | $ | 161,231 | 100.0 | % | $ | 187,763 | 100.0 | % | ||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||||||||
Labor and benefits(a) | $ | 16,753 | 30.9 | % | $ | 16,078 | 26.4 | % | $ | 49,321 | 30.6 | % | $ | 52,212 | 27.8 | % | ||||||||||||||||||||
Equipment rents | 1,559 | 2.9 | % | 3,083 | 5.1 | % | 4,884 | 3.0 | % | 9,289 | 4.9 | % | ||||||||||||||||||||||||
Purchased services | 6,083 | 11.2 | % | 5,080 | 8.3 | % | 17,432 | 10.8 | % | 15,838 | 8.4 | % | ||||||||||||||||||||||||
Depreciation and |
7,129 | 13.2 | % | 7,151 | 11.7 | % | 21,018 | 13.0 | % | 20,771 | 11.1 | % | ||||||||||||||||||||||||
Diesel fuel used in |
5,467 | 10.1 | % | 6,004 | 9.8 | % | 14,042 | 8.7 | % | 15,903 | 8.5 | % | ||||||||||||||||||||||||
Casualties and |
1,938 | 3.6 | % | 1,696 | 2.8 | % | 5,026 | 3.1 | % | 5,463 | 2.9 | % | ||||||||||||||||||||||||
Materials | 2,744 | 5.1 | % | 2,964 | 4.9 | % | 8,033 | 5.0 | % | 7,898 | 4.2 | % | ||||||||||||||||||||||||
Trackage rights | 2,884 | 5.3 | % | 2,457 | 4.0 | % | 7,201 | 4.5 | % | 10,877 | 5.8 | % | ||||||||||||||||||||||||
Net loss/(gain) on sale |
10 | — | % | (7 | ) | — | % | 12,992 | 8.1 | % | (45 | ) | — | % | ||||||||||||||||||||||
Restructuring costs | 73 | 0.1 | % | — | — | % | 789 | 0.5 | % | — | — | % | ||||||||||||||||||||||||
Other expenses(c) | 5,138 | 9.5 | % | 1,541 | 2.5 | % | 18,491 | 11.5 | % | 5,224 | 2.8 | % | ||||||||||||||||||||||||
Total operating expenses | $ | 49,778 | 91.9 | % | $ | 46,047 | 75.5 | % | $ | 159,229 | 98.8 | % | $ | 143,430 | 76.4 | % | ||||||||||||||||||||
Operating income |
$ | 4,372 | $ | 14,966 | $ | 2,002 | $ | 44,333 | ||||||||||||||||||||||||||||
Expenditures for |
$ | 2,440 | $ | 6,354 | $ | 8,094 | $ | 20,128 | ||||||||||||||||||||||||||||
(a) | Includes $0.6 million and $2.3 million of severance costs for the three and nine months ended nine September 30, 2015, respectively. | |
(b) | Includes an impairment charge of $13.0 million associated with an iron ore customer entering into voluntary administration for the nine months ended September 30, 2016. | |
(c) | Includes $3.0 million and $3.9 million corporate development and related costs for the three and nine months ended September 30, 2016, respectively. Includes the write-off of accounts receivable of $8.1 million associated with an iron ore customer entering into voluntary administration for the nine months ended September 30, 2016. | |
GENESEE & WYOMING INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||
U.K./EUROPEAN OPERATIONS SELECTED CONSOLIDATED FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||||||||||
Amount |
% of |
Amount |
% of |
Amount |
% of |
Amount |
% of |
|||||||||||||||||||||||||||||
Operating revenues: |
||||||||||||||||||||||||||||||||||||
Freight revenues | $ | 88,341 | 64.6 | % | $ | 104,746 | 61.4 | % | $ | 255,459 | 62.4 | % | $ | 210,565 | 59.4 | % | ||||||||||||||||||||
Freight-related |
43,873 | 32.1 | % | 62,479 | 36.6 | % | 135,897 | 33.2 | % | 128,808 | 36.3 | % | ||||||||||||||||||||||||
All other revenues | 4,444 | 3.3 | % | 3,498 | 2.0 | % | 17,859 | 4.4 | % | 15,245 | 4.3 | % | ||||||||||||||||||||||||
Total operating revenues | $ | 136,658 | 100.0 | % | $ | 170,723 | 100.0 | % | $ | 409,215 | 100.0 | % | $ | 354,618 | 100.0 | % | ||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||||||||
Labor and benefits(a) | $ | 42,056 | 30.8 | % | $ | 48,710 | 28.6 | % | $ | 130,373 | 31.8 | % | $ | 100,242 | 28.2 | % | ||||||||||||||||||||
Equipment rents | 21,012 | 15.4 | % | 24,878 | 14.6 | % | 65,269 | 15.9 | % | 49,916 | 14.1 | % | ||||||||||||||||||||||||
Purchased services | 29,701 | 21.7 | % | 32,948 | 19.3 | % | 84,522 | 20.7 | % | 73,399 | 20.7 | % | ||||||||||||||||||||||||
Depreciation and |
6,627 | 4.9 | % | 5,994 | 3.5 | % | 19,679 | 4.8 | % | 12,398 | 3.5 | % | ||||||||||||||||||||||||
Diesel fuel used in |
10,450 | 7.7 | % | 11,816 | 6.9 | % | 28,231 | 6.9 | % | 25,727 | 7.3 | % | ||||||||||||||||||||||||
Electricity used in |
3,226 | 2.4 | % | 5,164 | 3.0 | % | 9,895 | 2.4 | % | 10,530 | 3.0 | % | ||||||||||||||||||||||||
Casualties |
1,169 | 0.9 | % | 2,223 | 1.3 | % | 3,390 | 0.8 | % | 3,903 | 1.1 | % | ||||||||||||||||||||||||
Materials | 4,712 | 3.4 | % | 8,472 | 5.0 | % | 16,461 | 4.0 | % | 17,477 | 4.9 | % | ||||||||||||||||||||||||
Trackage rights | 10,850 | 7.9 | % | 13,285 | 7.8 | % | 30,509 | 7.5 | % | 27,577 | 7.8 | % | ||||||||||||||||||||||||
Net gain on sale and |
(78 | ) | (0.1 | )% | (142 | ) | (0.1 | )% | (148 | ) | — | % | (212 | ) | (0.1 | )% | ||||||||||||||||||||
Restructuring costs | 39 | — | % | — | — | % | 4,726 | 1.2 | % | — | — | % | ||||||||||||||||||||||||
Other expenses | 6,568 | 4.8 | % | 5,346 | 3.1 | % | 18,423 | 4.5 | % | 12,630 | 3.6 | % | ||||||||||||||||||||||||
Total operating expenses | $ | 136,332 | 99.8 | % | $ | 158,694 | 93.0 | % | $ | 411,330 | 100.5 | % | $ | 333,587 | 94.1 | % | ||||||||||||||||||||
Operating income/(loss) |
$ | 326 | $ | 12,029 | $ | (2,115 | ) | $ | 21,031 | |||||||||||||||||||||||||||
Expenditures for |
$ | 9,457 | $ | 14,195 | $ | 26,195 | $ | 19,236 | ||||||||||||||||||||||||||||
(a) | Includes $0.2 million corporate development and related costs for both the three and nine months ended September 30, 2016. | |
GENESEE & WYOMING INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
FREIGHT REVENUES, CARLOADS AND AVERAGE REVENUES PER CARLOAD | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPARISON BY COMMODITY GROUP | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands, except average revenues per carload) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, |
North American Operations | Australian Operations | U.K./European Operations | Total Operations | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity Group |
Freight |
Carloads* |
Average |
Freight |
Carloads* |
Average |
Freight |
Carloads* |
Average |
Freight |
Carloads* |
Average |
|||||||||||||||||||||||||||||||||||||||||||
Agricultural Products | $ | 29,367 | 54,024 | $ | 544 | $ | 3,909 | 8,624 | $ | 453 | $ | 628 | 652 | $ | 963 | $ | 33,904 | 63,300 | $ | 536 | |||||||||||||||||||||||||||||||||||
Autos & Auto Parts | 4,358 | 7,035 | 619 | — | — | — | — | — | — | 4,358 | 7,035 | 619 | |||||||||||||||||||||||||||||||||||||||||||
Chemicals & Plastics | 34,078 | 42,402 | 804 | — | — | — | — | — | — | 34,078 | 42,402 | 804 | |||||||||||||||||||||||||||||||||||||||||||
Coal & Coke | 21,434 | 63,028 | 340 | — | — | — | 3,199 | 9,276 | 345 | 24,633 | 72,304 | 341 | |||||||||||||||||||||||||||||||||||||||||||
Food & Kindred Products | 8,549 | 15,557 | 550 | — | — | — | — | — | — | 8,549 | 15,557 | 550 | |||||||||||||||||||||||||||||||||||||||||||
Intermodal | 10 | 112 | 89 | 17,688 | 15,417 | 1,147 | 67,553 | 239,055 | 283 | 85,251 | 254,584 | 335 | |||||||||||||||||||||||||||||||||||||||||||
Lumber & Forest Products | 21,301 | 35,253 | 604 | — | — | — | — | — | — | 21,301 | 35,253 | 604 | |||||||||||||||||||||||||||||||||||||||||||
Metallic Ores | 3,401 | 4,536 | 750 | 5,516 | 4,846 | 1,138 | — | — | — | 8,917 | 9,382 | 950 | |||||||||||||||||||||||||||||||||||||||||||
Metals | 24,127 | 31,978 | 754 | — | — | — | — | — | — | 24,127 | 31,978 | 754 | |||||||||||||||||||||||||||||||||||||||||||
Minerals & Stone | 31,144 | 53,530 | 582 | 1,918 | 14,567 | 132 | 16,961 | 45,300 | 374 | 50,023 | 113,397 | 441 | |||||||||||||||||||||||||||||||||||||||||||
Petroleum Products | 16,882 | 24,959 | 676 | 188 | 78 | 2,410 | — | — | — | 17,070 | 25,037 | 682 | |||||||||||||||||||||||||||||||||||||||||||
Pulp & Paper | 26,897 | 41,721 | 645 | — | — | — | — | — | — | 26,897 | 41,721 | 645 | |||||||||||||||||||||||||||||||||||||||||||
Waste | 6,213 | 13,420 | 463 | — | — | — | — | — | — | 6,213 | 13,420 | 463 | |||||||||||||||||||||||||||||||||||||||||||
Other | 4,486 | 14,444 | 311 | — | — | — | — | — | — | 4,486 | 14,444 | 311 | |||||||||||||||||||||||||||||||||||||||||||
Totals | $ | 232,247 | 401,999 | $ | 578 | $ | 29,219 | 43,532 | $ | 671 | $ | 88,341 | 294,283 | $ | 300 | $ | 349,807 | 739,814 | $ | 473 |
Three Months Ended September 30, |
North American Operations | Australian Operations | U.K./European Operations | Total Operations | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity Group |
Freight |
Carloads* |
Average |
Freight |
Carloads* |
Average |
Freight |
Carloads* |
Average |
Freight |
Carloads* |
Average |
|||||||||||||||||||||||||||||||||||||||||||
Agricultural Products | $ | 29,643 | 51,010 | $ | 581 | $ | 4,796 | 11,442 | $ | 419 | $ | 131 | 169 | $ | 775 | $ | 34,570 | 62,621 | $ | 552 | |||||||||||||||||||||||||||||||||||
Autos & Auto Parts | 4,302 | 6,997 | 615 | — | — | — | — | — | — | 4,302 | 6,997 | 615 | |||||||||||||||||||||||||||||||||||||||||||
Chemicals & Plastics | 34,942 | 43,829 | 797 | — | — | — | — | — | — | 34,942 | 43,829 | 797 | |||||||||||||||||||||||||||||||||||||||||||
Coal & Coke | 24,609 | 71,197 | 346 | — | — | — | 6,616 | 17,678 | 374 | 31,225 | 88,875 | 351 | |||||||||||||||||||||||||||||||||||||||||||
Food & Kindred Products | 8,712 | 15,261 | 571 | — | — | — | — | — | — | 8,712 | 15,261 | 571 | |||||||||||||||||||||||||||||||||||||||||||
Intermodal | 6 | 66 | 91 | 18,133 | 16,045 | 1,130 | 79,880 | 243,161 | 329 | 98,019 | 259,272 | 378 | |||||||||||||||||||||||||||||||||||||||||||
Lumber & Forest Products | 20,154 | 34,770 | 580 | — | — | — | — | — | — | 20,154 | 34,770 | 580 | |||||||||||||||||||||||||||||||||||||||||||
Metallic Ores | 4,897 | 6,291 | 778 | 7,686 | 5,724 | 1,343 | — | — | — | 12,583 | 12,015 | 1,047 | |||||||||||||||||||||||||||||||||||||||||||
Metals | 26,522 | 34,507 | 769 | — | — | — | — | — | — | 26,522 | 34,507 | 769 | |||||||||||||||||||||||||||||||||||||||||||
Minerals & Stone | 31,411 | 56,977 | 551 | 1,771 | 15,224 | 116 | 18,119 | 43,539 | 416 | 51,301 | 115,740 | 443 | |||||||||||||||||||||||||||||||||||||||||||
Petroleum Products | 16,365 | 25,242 | 648 | 394 | 97 | 4,062 | — | — | — | 16,759 | 25,339 | 661 | |||||||||||||||||||||||||||||||||||||||||||
Pulp & Paper | 29,348 | 45,270 | 648 | — | — | — | — | — | — | 29,348 | 45,270 | 648 | |||||||||||||||||||||||||||||||||||||||||||
Waste | 5,386 | 11,453 | 470 | — | — | — | — | — | — | 5,386 | 11,453 | 470 | |||||||||||||||||||||||||||||||||||||||||||
Other | 5,113 | 16,701 | 306 | — | — | — | — | — | — | 5,113 | 16,701 | 306 | |||||||||||||||||||||||||||||||||||||||||||
Totals | $ | 241,410 | 419,571 | $ | 575 | $ | 32,780 | 48,532 | $ | 675 | $ | 104,746 | 304,547 | $ | 344 | $ | 378,936 | 772,650 | $ | 490 | |||||||||||||||||||||||||||||||||||
* Represents physical railcars and the estimated railcar equivalents of commodities transported by metric ton or other measure, as well as intermodal units
.
GENESEE & WYOMING INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
FREIGHT REVENUES, CARLOADS AND AVERAGE REVENUES PER CARLOAD | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPARISON BY COMMODITY GROUP | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands, except average revenues per carload) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, |
North American Operations | Australian Operations | U.K./European Operations | Total Operations | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity Group |
Freight |
Carloads* |
Average |
Freight |
Carloads* |
Average |
Freight |
Carloads* |
Average |
Freight |
Carloads* |
Average |
|||||||||||||||||||||||||||||||||||||||||||
Agricultural Products | $ | 84,601 | 159,369 | $ | 531 | $ | 13,319 | 32,701 | $ | 407 | $ | 1,364 | 1,494 | $ | 913 | $ | 99,284 | 193,564 | $ | 513 | |||||||||||||||||||||||||||||||||||
Autos & Auto Parts | 13,373 | 21,987 | 608 | — | — | — | — | — | — | 13,373 | 21,987 | 608 | |||||||||||||||||||||||||||||||||||||||||||
Chemicals & Plastics | 103,569 | 131,636 | 787 | — | — | — | — | — | — | 103,569 | 131,636 | 787 | |||||||||||||||||||||||||||||||||||||||||||
Coal & Coke | 53,311 | 157,943 | 338 | — | — | — | 10,951 | 26,589 | 412 | 64,262 | 184,532 | 348 | |||||||||||||||||||||||||||||||||||||||||||
Food & Kindred Products | 24,956 | 44,969 | 555 | — | — | — | — | — | — | 24,956 | 44,969 | 555 | |||||||||||||||||||||||||||||||||||||||||||
Intermodal | 12 | 136 | 88 | 49,305 | 44,360 | 1,111 | 201,001 | 679,693 | 296 | 250,318 | 724,189 | 346 | |||||||||||||||||||||||||||||||||||||||||||
Lumber & Forest Products | 63,013 | 104,646 | 602 | — | — | — | 126 | 315 | 400 | 63,139 | 104,961 | 602 | |||||||||||||||||||||||||||||||||||||||||||
Metallic Ores | 13,078 | 16,883 | 775 | 11,490 | 9,182 | 1,251 | 40 | 93 | 430 | 24,608 | 26,158 | 941 | |||||||||||||||||||||||||||||||||||||||||||
Metals | 78,327 | 103,764 | 755 | — | — | — | — | — | — | 78,327 | 103,764 | 755 | |||||||||||||||||||||||||||||||||||||||||||
Minerals & Stone | 85,440 | 149,093 | 573 | 5,698 | 47,552 | 120 | 41,977 | 114,610 | 366 | 133,115 | 311,255 | 428 | |||||||||||||||||||||||||||||||||||||||||||
Petroleum Products | 52,335 | 76,410 | 685 | 578 | 211 | 2,739 | — | — | — | 52,913 | 76,621 | 691 | |||||||||||||||||||||||||||||||||||||||||||
Pulp & Paper | 79,087 | 124,017 | 638 | — | — | — | — | — | — | 79,087 | 124,017 | 638 | |||||||||||||||||||||||||||||||||||||||||||
Waste | 15,552 | 33,226 | 468 | — | — | — | — | — | — | 15,552 | 33,226 | 468 | |||||||||||||||||||||||||||||||||||||||||||
Other | 14,500 | 47,235 | 307 | — | — | — | — | — | — | 14,500 | 47,235 | 307 | |||||||||||||||||||||||||||||||||||||||||||
Totals | $ | 681,154 | 1,171,314 | $ | 582 | $ | 80,390 | 134,006 | $ | 600 | $ | 255,459 | 822,794 | $ | 310 | $ | 1,017,003 | 2,128,114 | $ | 478 |
Nine Months Ended September 30, |
North American Operations | Australian Operations | U.K./European Operations | Total Operations | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity Group |
Freight |
Carloads* |
Average |
Freight |
Carloads* |
Average |
Freight |
Carloads* |
Average |
Freight |
Carloads* |
Average |
|||||||||||||||||||||||||||||||||||||||||||
Agricultural Products | $ | 94,762 | 163,037 | $ | 581 | $ | 18,222 | 40,854 | $ | 446 | $ | 272 | 376 | $ | 723 | $ | 113,256 | 204,267 | $ | 554 | |||||||||||||||||||||||||||||||||||
Autos & Auto Parts | 13,675 | 21,670 | 631 | — | — | — | — | — | — | 13,675 | 21,670 | 631 | |||||||||||||||||||||||||||||||||||||||||||
Chemicals & Plastics | 106,181 | 135,509 | 784 | — | — | — | — | — | — | 106,181 | 135,509 | 784 | |||||||||||||||||||||||||||||||||||||||||||
Coal & Coke | 73,713 | 214,254 | 344 | — | — | — | 16,598 | 43,433 | 382 | 90,311 | 257,687 | 350 | |||||||||||||||||||||||||||||||||||||||||||
Food & Kindred Products | 26,235 | 45,875 | 572 | — | — | — | — | — | — | 26,235 | 45,875 | 572 | |||||||||||||||||||||||||||||||||||||||||||
Intermodal | 7 | 78 | 90 | 54,293 | 46,051 | 1,179 | 156,572 | 476,660 | 328 | 210,872 | 522,789 | 403 | |||||||||||||||||||||||||||||||||||||||||||
Lumber & Forest Products | 60,147 | 102,325 | 588 | — | — | — | — | — | — | 60,147 | 102,325 | 588 | |||||||||||||||||||||||||||||||||||||||||||
Metallic Ores | 15,018 | 18,770 | 800 | 39,666 | 23,607 | 1,680 | — | — | — | 54,684 | 42,377 | 1,290 | |||||||||||||||||||||||||||||||||||||||||||
Metals | 79,935 | 104,232 | 767 | — | — | — | — | — | — | 79,935 | 104,232 | 767 | |||||||||||||||||||||||||||||||||||||||||||
Minerals & Stone | 89,541 | 160,233 | 559 | 5,436 | 43,918 | 124 | 37,123 | 91,585 | 405 | 132,100 | 295,736 | 447 | |||||||||||||||||||||||||||||||||||||||||||
Petroleum Products | 49,417 | 76,154 | 649 | 985 | 230 | 4,283 | — | — | — | 50,402 | 76,384 | 660 | |||||||||||||||||||||||||||||||||||||||||||
Pulp & Paper | 85,722 | 133,337 | 643 | — | — | — | — | — | — | 85,722 | 133,337 | 643 | |||||||||||||||||||||||||||||||||||||||||||
Waste | 13,390 | 28,970 | 462 | — | — | — | — | — | — | 13,390 | 28,970 | 462 | |||||||||||||||||||||||||||||||||||||||||||
Other | 14,850 | 51,728 | 287 | — | — | — | — | — | — | 14,850 | 51,728 | 287 | |||||||||||||||||||||||||||||||||||||||||||
Totals | $ | 722,593 | 1,256,172 | $ | 575 | $ | 118,602 | 154,660 | $ | 767 | $ | 210,565 | 612,054 | $ | 344 | $ | 1,051,760 | 2,022,886 | $ | 520 | |||||||||||||||||||||||||||||||||||
* Represents physical railcars and the estimated railcar equivalents of commodities transported by metric ton or other measure, as well as intermodal units.
Non-GAAP Financial Measures
This earnings release contains references to adjusted operating income, adjusted operating ratio, adjusted net income, adjusted diluted earnings per common share (EPS) and free cash flow, which are "non-GAAP financial measures" as this term is defined in Item 10(e) of Regulation S-K under the Securities Act of 1933 and the Securities Exchange Act of 1934 and Regulation G under the Securities Exchange Act of 1934. In accordance with these rules, G&W has reconciled these non-GAAP financial measures to their most directly comparable U.S. GAAP measures.
Management views these non-GAAP financial measures as important measures of G&W's operating performance or, in the case of free cash flow, an important financial measure of how well G&W is managing its assets and a useful indicator of cash flow that may be available for discretionary use by G&W. Management also views these non-GAAP financial measures as a way to assess comparability between periods. Key limitations of the free cash flow measure include the assumptions that G&W will be able to refinance its existing debt when it matures and meet other cash flow obligations from financing activities, such as principal payments on debt.
These non-GAAP financial measures are not intended to represent, and should not be considered more meaningful than, or as an alternative to, their most directly comparable GAAP measures. These non-GAAP financial measures may be different from similarly-titled non-GAAP financial measures used by other companies.
The following tables set forth reconciliations of each of these non-GAAP financial measures to their most directly comparable GAAP measure ($ in millions, except per share amounts).
Reconciliations of Non-GAAP Financial Measures
Adjusted Operating Income and Adjusted Operating Ratio
Three Months Ended | ||||||||||||||||||||
September 30, 2016 | ||||||||||||||||||||
North |
Australian |
U.K./European |
Total |
|||||||||||||||||
Operating revenues | $ | 310.2 | $ | 54.2 | $ | 136.7 | $ | 501.0 | ||||||||||||
Operating expenses | 223.0 | 49.8 | 136.3 | 409.2 | ||||||||||||||||
Operating income(a) |
$ | 87.2 | $ | 4.4 | $ | 0.3 | $ | 91.9 | ||||||||||||
Operating ratio (b) | 71.9 | % | 91.9 | % | 99.8 | % | 81.7 | % | ||||||||||||
Operating expenses | $ | 223.0 | $ | 49.8 | $ | 136.3 | $ | 409.2 | ||||||||||||
Corporate development and related costs | (1.0 | ) | (2.9 | ) | (0.3 | ) | (4.3 | ) | ||||||||||||
Restructuring costs | (0.1 | ) | (0.1 | ) | — | (0.2 | ) | |||||||||||||
Net gain on sale of assets | 0.5 | — | 0.1 | 0.5 | ||||||||||||||||
Adjusted operating expenses | $ | 222.4 | $ | 46.8 | $ | 136.0 | $ | 405.2 | ||||||||||||
Adjusted operating income | $ | 87.8 | $ | 7.4 | $ | 0.6 | $ | 95.8 | ||||||||||||
Adjusted operating ratio | 71.7 | % | 86.3 | % | 99.5 | % | 80.9 | % | ||||||||||||
Three Months Ended | ||||||||||||||||||||
September 30, 2015 | ||||||||||||||||||||
North |
Australian |
U.K./European |
Total |
|||||||||||||||||
Operating revenues | $ | 314.6 | $ | 61.0 | $ | 170.7 | $ | 546.3 | ||||||||||||
Operating expenses | 224.0 | 46.0 | 158.7 | 428.7 | ||||||||||||||||
Operating income (a) | $ | 90.6 | $ | 15.0 | $ | 12.0 | $ | 117.6 | ||||||||||||
Operating ratio (b) | 71.2 | % | 75.5 | % | 93.0 | % | 78.5 | % | ||||||||||||
Operating expenses | $ | 224.0 | $ | 46.0 | $ | 158.7 | $ | 428.7 | ||||||||||||
Corporate development and related costs | (1.2 | ) | (0.7 | ) | (0.1 | ) | (2.0 | ) | ||||||||||||
Net gain on sale of assets | 1.0 | — | 0.1 | 1.2 | ||||||||||||||||
Adjusted operating expenses | $ | 223.9 | $ | 45.4 | $ | 158.7 | $ | 428.0 | ||||||||||||
Adjusted operating income | $ | 90.7 | $ | 15.6 | $ | 12.0 | $ | 118.3 | ||||||||||||
Adjusted operating ratio | 71.2 | % | 74.4 | % | 93.0 | % | 78.3 | % | ||||||||||||
(a) | Operating income is calculated as operating revenues less operating expenses. | |
(b) | Operating ratio is calculated as operating expenses divided by operating revenues. | |
Adjusted Net Income and Adjusted Diluted Earnings Per Common Share
Three Months Ended September 30, 2016 |
Income |
Provision for
|
Net Income |
Diluted |
||||||||||||||||
As reported | $ | 76.4 | $ | (19.6 | ) | $ | 56.8 | $ | 0.98 | |||||||||||
Add back certain items: | ||||||||||||||||||||
Corporate development and related costs | 4.3 | (1.2 | ) | 3.1 | 0.05 | |||||||||||||||
Restructuring costs | 0.2 | (0.1 | ) | 0.2 | — | |||||||||||||||
Impact of reduction in U.K. income tax rate | — | (4.3 | ) | (4.3 | ) | (0.07 | ) | |||||||||||||
Net gain on sale of assets | (0.5 | ) | 0.1 | (0.4 | ) | (0.01 | ) | |||||||||||||
Adjusted | $ | 80.4 | $ | (25.0 | ) | $ | 55.4 | $ | 0.95 | |||||||||||
Short Line Tax Credit | — | (7.8 | ) | (7.8 | ) | (0.13 | ) | |||||||||||||
Adjusted (excluding Short Line Tax Credit) | $ | 80.4 | $ | (32.8 | ) | $ | 47.6 | $ | 0.82 | |||||||||||
Three Months Ended September 30, 2015 |
Income |
Provision for |
Net Income |
Diluted |
||||||||||||||||
As reported | $ | 100.2 | $ | (36.9 | ) | $ | 63.4 | $ | 1.10 | |||||||||||
Add back certain items: | ||||||||||||||||||||
Corporate development and related costs | 2.0 | (0.7 | ) | 1.3 | 0.02 | |||||||||||||||
Net gain on sale of assets | (1.2 | ) | 0.2 | (0.9 | ) | (0.02 | ) | |||||||||||||
As adjusted | $ | 101.0 | $ | (37.3 | ) | $ | 63.7 | $ | 1.10 | |||||||||||
Free Cash Flow
Nine Months Ended | ||||||||||
September 30, | ||||||||||
2016 | 2015 | |||||||||
Net cash provided by operating activities | $ | 303.6 | $ | 344.3 | ||||||
Net cash used in investing activities | (117.2 | ) | (986.1 | ) | ||||||
Net cash used for acquisitions | 1.3 | 786.3 | ||||||||
Free cash flow | $ | 187.6 | $ | 144.5 | ||||||
New business investments, net of grants from outside parties | 8.6 | 58.6 | ||||||||
Free cash flow before new business investments | $ | 196.1 | $ | 203.1 |
CONTACT:
G&W Corporate Communications
Michael
Williams, 1-203-202-8900
mwilliams@gwrr.com