EX-99.1 2 gw2058ex991.txt Exhibit 99.1 GENESEE & WYOMING REPORTS DILUTED EPS OF $0.26 FOR THE FOURTH QUARTER OF 2004; $0.34 EXCLUDING IMPACT OF REFINANCING AND TAX ADJUSTMENT GREENWICH, Conn., Feb. 15 /PRNewswire-FirstCall/ -- Genesee & Wyoming Inc. (GWI) (NYSE: GWR) reported today that net income in the fourth quarter of 2004 was $7.2 million, compared to net income of $7.9 million in the fourth quarter of 2003. GWI's fourth quarter 2004 results included a $1.1 million after-tax charge related to its November debt refinancing as well as a $1.0 million tax accrual related to an increase in its projected U.S. tax rate. GWI's diluted earnings per share in the fourth quarter of 2004 were $0.26 with 27.6 million shares outstanding, compared to diluted earnings per share of $0.28 with 27.3 million shares outstanding in the fourth quarter of 2003. Excluding the $0.04 impact of the debt refinancing and the $0.04 impact of the U.S. tax rate adjustment, GWI's diluted earnings per share were $0.34 in the fourth quarter of 2004. (Note that prior to GWI's adoption of Emerging Issues Task Force Bulletin Issue No. 03-06 under FASB Statement No. 128 which became effective June 30, 2004, GWI's diluted EPS for the fourth quarter of 2003 were $0.29.) Based on GWI's current and projected level of profitability, management has increased the tax rate used to compute its U.S. income tax expense to the highest corporate bracket of 35%. As a result, GWI increased its fourth quarter tax accrual by $1.0 million, of which $0.2 million relates to the first nine months of 2004 and $0.8 million relates to an increase in net U.S. deferred tax liabilities generated in 2003 and prior years. From 2005 through 2007, the increased tax provision will be more than offset by recent U.S. tax legislation which is expected to significantly reduce GWI's effective book tax rate because of a three-year tax credit for short line railroads. As previously announced, the $257 million refinancing of GWI's U.S. and Canadian credit facilities in the fourth quarter of 2004 resulted in a $1.1 million after-tax charge, of which $0.9 million was a non-cash write-off of deferred financing fees and $0.2 million was the cash cost of exiting certain interest rate swaps. North American Results In the fourth quarter of 2004, GWI's North American revenue increased 30.1% to $80.1 million, compared to $61.5 million in the fourth quarter of 2003. Of this $18.6 million increase in revenue, $9.6 million was same- railroad growth, $6.6 million was from the acquisition of rail lines from Georgia-Pacific Corp., $1.9 million was from the start-up of the Tazewell & Peoria Railroad in Illinois and $0.5 million was from the start-up of the Savannah Wharf rail line in Georgia. The 15.5% growth in same-railroad revenue was balanced across multiple commodity groups, with particular strength in metals shipments which increased by $1.5 million, or 33.1%; coal shipments which increased by $1.3 million, or 14.7%; and paper shipments which increased by $1.2 million, or 16.0%. GWI's North American operating income in the fourth quarter of 2004 increased 41.8% to $11.7 million, compared with $8.3 million in the fourth quarter of 2003. The North American operating ratio improved by 1.2% to 85.4% in the fourth quarter of 2004, compared with an operating ratio of 86.6% in the fourth quarter of 2003. Operating costs in the fourth quarter of 2004 were adversely affected by a 55.3% increase in the average price per gallon of diesel fuel compared to the same period last year. GWI also incurred $0.5 million in start up costs from the commencement of operations of the Tazewell & Peoria Railroad in November 2004. Australian Results In Australia, revenue at GWI's 50%-owned subsidiary, Australian Railroad Group (ARG), increased 15.1% to US$85.9 million in the fourth quarter of 2004, compared with US$74.6 million in the fourth quarter of 2003. This US$11.3 million increase in revenue was composed of US$3.2 million in grain, US$2.0 million in iron ores and US$6.1 million in all other revenues. In Australian dollars, ARG's revenue increased 12.0% in the fourth quarter of 2004 compared with the fourth quarter of 2003. ARG's operating income in the fourth quarter of 2004 was US$17.1 million, compared with operating income of US$18.6 million in the fourth quarter of 2003. ARG's operating ratio was 80.1% in the fourth quarter of 2004, compared with 75.0% in the fourth quarter of 2003. The operating ratio in the fourth quarter of 2004 was adversely impacted by higher contract driver costs due to a locomotive engineer shortage in Australia and a 49.8% increase in the price of diesel fuel. Equity income from ARG in the fourth quarter of 2004 was US$3.5 million, unchanged from the fourth quarter of 2003. Equity income in the fourth quarter of 2003 included a US$0.9 million charge from the write-off of unamortized financing fees in conjunction with ARG's debt refinancing and a US$0.6 million tax benefit from finalizing the tax base of assets acquired from the government of Western Australia. In comparing the fourth quarter of 2004 with the fourth quarter of 2003, the Australian dollar strengthened 4.0%. Annual Consolidated Results For the year ended December 31, 2004, GWI reported net income of $37.6 million, of which $22.7 million (60.4%) was from North America, $14.2 million (37.8%) was from Australia and $0.7 million (1.8%) was from South America. This represents a 31.0% increase over $28.7 million of net income reported in the year ended December 31, 2003. GWI's diluted earnings per share increased 32.0% to $1.36 in 2004 (with 27.4 million shares outstanding), compared with $1.03 in 2003 (with 26.8 million shares outstanding). For the year ended December 31, 2004, GWI's North American operations generated Free Cash Flow of $33.1 million (defined as Cash from Operations of $55.0 million less Cash used in Investing of $24.8 million excluding Cash used for Acquisitions of $2.9 million) compared with $26.0 million of Free Cash Flow (defined as Cash from Operations of $46.9 million less Cash used in Investing of $75.9 million excluding Cash used for Acquisitions of $55.0 million) in the same period of 2003. See the attached schedule for a description and discussion of Free Cash Flow. Mortimer B. Fuller III, Chairman and Chief Executive Officer of GWI, commented, "GWI's financial results for 2004 were excellent. In North America, our net income increased 25.6% and we generated record free cash flow of $33.1 million. Due to strong economic activity throughout our operating regions, we achieved 12.8% same railroad revenue growth, which more than offset a substantial increase in the price of diesel fuel. In addition, our Rail Link management team successfully integrated the acquisition of three railroads from Georgia-Pacific and one rail property from CSX, while our Illinois management team achieved a smooth start up of the Tazewell & Peoria Railroad." Mr. Fuller continued, "In Australia, ARG's net income increased 37.3%, as we hauled record tonnages of grain and experienced good growth in most of our ores and minerals traffic. Against a backdrop of high fuel prices and locomotive driver shortages for most of the year, this was a reasonably good outcome for ARG. Although we will be shipping a weaker grain harvest in 2005, we are focused on the strong fundamentals of our non-grain business and will be investing to support its growth. Due to major expansion plans at three of our iron ore customers and one of our alumina customers, we expect to benefit from traffic growth late in 2005 and into 2006." As previously announced, GWI's conference call to discuss financial results for the fourth quarter will be held today at 10:00AM (Eastern Time). The dial-in number for the teleconference is 800-288-8961 or the call may be accessed live over the Internet (listen only) directly at http://phx.corporate-ir.net/phoenix.zhtml?c=64426&p=irol-irhome or via the Investors tab of Genesee & Wyoming's website (http://www.gwrr.com). An audio replay of the conference call will be accessible via the Investors tab of Genesee & Wyoming's website starting this afternoon. GWI is a leading operator of short line and regional freight railroads in the United States, Canada, Mexico, Australia and Bolivia. The Company operates over 8,100 miles of owned and leased track and more than 3,000 additional miles under track access arrangements. This press release contains forward-looking statements regarding future events and the future performance of Genesee & Wyoming Inc. that involve risks and uncertainties that could cause actual results to differ materially from its current expectations including, but not limited to, economic conditions, customer demand, increased competition in relevant markets, and others. GWI refers you to the documents that it files from time to time with the Securities and Exchange Commission, such as GWI's Forms 10-Q and 10-K which contain additional important factors that could cause its actual results to differ from its current expectations and from the forward-looking statements contained in this press release. GENESEE & WYOMING INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited)
Three Months Ended Year Ended December 31, December 31, --------------------------- --------------------------- 2004 2003 2004 2003 ------------ ------------ ------------ ------------ REVENUES $ 80,076 $ 61,529 $ 303,784 $ 244,827 EQUITY ISSUANCE EXPENSE - - 542 - OPERATING EXPENSES 68,378 53,278 253,203 208,522 INCOME FROM OPERATIONS 11,698 8,251 50,039 36,305 INTEREST EXPENSE (4,072) (1,961) (11,142) (8,646) OTHER (EXPENSE) INCOME, NET (333) 219 (131) 986 INCOME BEFORE INCOME TAXES AND EQUITY EARNINGS 7,293 6,509 38,766 28,645 PROVISION FOR INCOME TAXES 3,791 2,308 16,059 10,567 INCOME BEFORE EQUITY EARNINGS 3,502 4,201 22,707 18,078 EQUITY IN NET INCOME OF INTERNATIONAL AFFILIATES: AUSTRALIAN RAILROAD GROUP 3,489 3,512 14,235 10,371 SOUTH AMERICA 181 158 677 270 NET INCOME 7,172 7,871 37,619 28,719 IMPACT OF PREFERRED STOCK OUTSTANDING - 301 479 1,270 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 7,172 $ 7,570 $ 37,140 $ 27,449 BASIC EARNINGS PER SHARE: NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 0.29 $ 0.32 $ 1.54 $ 1.16 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 24,328 23,838 24,138 23,659 DILUTED EARNINGS PER SHARE: NET INCOME $ 0.26 $ 0.28 $ 1.36 $ 1.03 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 27,644 27,255 27,402 26,768
GENESEE & WYOMING INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) December 31, December 31, 2004 2003 ------------- ------------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 14,451 $ 11,118 Accounts receivable, net 64,537 54,656 Materials and supplies 5,263 5,204 Prepaid expenses and other 7,784 6,204 Deferred income tax assets, net 3,190 3,010 Total current assets 95,225 80,192 PROPERTY AND EQUIPMENT, net 337,024 315,345 INVESTMENT IN UNCONSOLIDATED AFFILIATES 132,528 117,664 GOODWILL 24,682 24,522 INTANGIBLE ASSETS, net 77,778 79,357 OTHER ASSETS, net 10,014 10,093 Total assets $ 677,251 $ 627,173 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term debt $ 6,356 $ 6,589 Accounts payable 63,794 57,472 Accrued expenses 21,598 13,902 Total current liabilities 91,748 77,963 LONG-TERM DEBT, less current portion 125,881 151,433 DEFERRED INCOME TAX LIABILITIES, net 50,517 41,840 DEFERRED ITEMS - grants from governmental agencies 46,229 42,667 DEFERRED GAIN - sale/leaseback 3,495 3,982 OTHER LONG-TERM LIABILITIES 14,122 14,843 MINORITY INTEREST 3,559 3,365 REDEEMABLE CONVERTIBLE PREFERRED STOCK - 23,994 TOTAL STOCKHOLDERS' EQUITY 341,700 267,086 Total liabilities and stockholders' equity $ 677,251 $ 627,173 GENESEE & WYOMING INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Year Ended December 31, --------------------------- 2004 2003 ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 37,619 $ 28,719 Adjustments to reconcile net income to net cash provided by operating activities- Depreciation and amortization 19,243 15,471 Amortization of restricted stock 189 Deferred income taxes 7,856 9,659 Net gain on sale and impairment of assets (13) (87) Write off of deferred financing fees from early extinguishment of debt 1,611 - Equity earnings of unconsolidated international affiliates (14,911) (10,641) Minority interest expense 194 243 Tax benefit realized upon exercise of stock options 1,545 1,123 Valuation adjustment of split dollar life insurance asset (459) (367) Changes in assets and liabilities, net of effect of acquisitions - Accounts receivable (9,210) 3,267 Materials and supplies 9 325 Prepaid expenses and other (1,567) 999 Accounts payable and accrued expenses 12,846 (3,941) Other assets and liabilities, net 35 2,147 Net cash provided by operating activities 54,987 46,917 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment, net of proceeds from government grants (28,072) (18,934) Locomotive upgrade project - (4,076) Purchase of Pawnee Transloading Company Inc., net of cash received, Homer City and Savannah Wharf rail properties (2,909) - Purchase of Chattahoochee Industrial Railroad, Arkansas, Louisiana and Mississippi Railroad and Fordyce & Princeton Railroad Companies - (54,952) Cash received from unconsolidated international affiliates 5,757 132 Proceeds from disposition of property and equipment 448 1,941 Net cash used in investing activities (24,776) (75,889) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on long-term borrowings (283,579) (159,608) Proceeds from issuance of long-term debt 254,800 186,500 Payment of debt issuance costs (1,396) - Proceeds from employee stock purchases 3,046 2,546 Dividend on Redeemable Convertible Preferred Stock (411) (1,000) Net cash (used in) provided by financing activities (27,540) 28,438 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 662 624 INCREASE IN CASH AND CASH EQUIVALENTS 3,333 90 CASH AND CASH EQUIVALENTS, beginning of period 11,118 11,028 CASH AND CASH EQUIVALENTS, end of period $ 14,451 $ 11,118 GENESEE & WYOMING INC. AND SUBSIDIARIES Selected Consolidated Financial Information (dollars in thousands) (Unaudited)
Three Months Ended December 31, ------------------------------------------------- 2004 2003 ----------------------- ----------------------- % of % of Amount Revenue Amount Revenue ---------- ---------- ---------- ---------- Revenues: Freight $ 58,439 73.0% $ 45,848 74.5% Non-freight 21,637 27.0% 15,681 25.5% Total revenues $ 80,076 100.0% $ 61,529 100.0% Operating Expense Comparison: Natural Classification Labor and benefits $ 27,183 33.9% $ 22,447 36.5% Equipment rents 7,376 9.2% 5,247 8.5% Purchased services 5,086 6.4% 4,031 6.6% Depreciation and amortization 4,948 6.2% 4,033 6.6% Diesel fuel 7,919 9.9% 4,600 7.5% Casualties and insurance 3,752 4.7% 4,156 6.8% Materials 4,191 5.2% 3,367 5.5% Net gain on sale and impairment of assets - 0.0% (228) -0.4% Other expenses 7,923 9.9% 5,625 9.0% Total operating expenses $ 68,378 85.4% $ 53,278 86.6% Functional Classification Transportation $ 28,448 35.5% $ 22,263 36.2% Maintenance of ways and structures 7,344 9.2% 6,418 10.4% Maintenance of equipment 12,813 16.0% 9,514 15.5% General and administrative 14,825 18.5% 11,278 18.3% Net gain on sale and impairment of assets - 0.0% (228) -0.4% Depreciation and amortization 4,948 6.2% 4,033 6.6% Total operating expenses $ 68,378 85.4% $ 53,278 86.6%
GENESEE & WYOMING INC. AND SUBSIDIARIES Selected Consolidated Financial Information (dollars in thousands) (Unaudited)
Year Ended December 31, ------------------------------------------------- 2004 2003 ----------------------- ----------------------- % of % of Amount Revenue Amount Revenue ---------- ---------- ---------- ---------- Revenues: Freight $ 226,265 74.5% $ 182,567 74.6% Non-freight 77,519 25.5% 62,260 25.4% Total revenues $ 303,784 100.0% $ 244,827 100.0% Operating Expense Comparison: Natural Classification Labor and benefits $ 105,079 34.6% $ 87,315 35.7% Equipment rents 27,692 9.1% 18,409 7.5% Purchased services 18,358 6.0% 17,766 7.3% Depreciation and amortization 19,243 6.3% 15,471 6.3% Diesel fuel 25,432 8.4% 18,325 7.5% Casualties and insurance 15,710 5.2% 13,831 5.6% Materials 15,336 5.0% 15,189 6.2% Net gain on sale and impairment of assets (13) 0.0% (87) 0.0% Other expenses 26,908 8.9% 22,303 9.1% Total operating expenses $ 253,745 83.5% $ 208,522 85.2% Functional Classification Transportation $ 102,425 33.7% $ 84,268 34.4% Maintenance of ways and structures 29,346 9.7% 25,969 10.6% Maintenance of equipment 47,602 15.7% 36,695 15.0% General and administrative 55,142 18.1% 46,206 18.9% Net gain on sale and impairment of assets (13) 0.0% (87) 0.0% Depreciation and amortization 19,243 6.3% 15,471 6.3% Total operating expenses $ 253,745 83.5% $ 208,522 85.2%
GENESEE & WYOMING INC. AND SUBSIDIARIES North American Railroad Freight Revenue, Carloads and Average Revenue Per Carload Comparison by Commodity Group (dollars in thousands, except average revenue per carload)
Three Months Ended Three Months Ended December 31, 2004 December 31, 2003 --------------------------------- --------------------------------- Average Average Revenue Revenue Freight Per Freight Per Commodity Group Revenues Carloads Carload Revenues Carloads Carload ----------------------------------- --------- --------- --------- --------- --------- --------- Paper $ 10,776 24,169 446 $ 7,651 18,322 $ 418 Coal, Coke & Ores 10,686 46,987 227 8,962 41,945 214 Lumber & Forest Products 6,502 18,732 347 4,317 13,285 325 Metals 6,386 19,472 328 4,494 14,516 310 Petroleum Products 6,214 8,100 767 5,705 7,765 735 Minerals & Stone 5,599 14,347 390 5,462 13,880 394 Farm & Food Products 4,816 13,462 358 3,934 10,901 361 Chemicals-Plastics 4,274 8,487 504 2,858 5,886 486 Autos & Auto Parts 1,416 3,207 442 1,424 3,471 410 Intermodal 640 1,601 400 375 1,183 317 Other 1,130 4,323 261 666 2,827 236 Totals $ 58,439 162,887 359 $ 45,848 133,981 342
GENESEE & WYOMING INC. AND SUBSIDIARIES North American Railroad Freight Revenue, Carloads and Average Revenue Per Carload Comparison by Commodity Group (dollars in thousands, except average revenue per carload)
Year Ended Year Ended December 31, 2004 December 31, 2003 --------------------------------- --------------------------------- Average Average Revenue Revenue Freight Per Freight Per Commodity Group Revenues Carloads Carload Revenues Carloads Carload ----------------------------------- --------- --------- --------- --------- --------- --------- Coal, Coke & Ores $ 45,126 191,038 $ 236 $ 37,881 167,363 $ 226 Paper 40,486 94,340 429 30,939 74,662 414 Lumber & Forest Products 25,295 76,055 333 17,093 53,793 318 Petroleum Products 24,465 32,401 755 24,455 31,798 769 Metals 23,464 73,412 320 17,445 59,502 293 Minerals & Stone 22,294 59,197 377 21,983 56,484 389 Chemicals-Plastics 16,270 31,262 520 11,067 23,517 471 Farm & Food Products 16,203 40,520 400 12,133 32,589 372 Autos & Auto Parts 6,362 14,665 434 5,775 14,235 406 Intermodal 2,409 6,425 375 1,574 5,518 285 Other 3,891 14,034 277 2,222 10,292 216 Totals $ 226,265 633,349 357 $ 182,567 529,753 345
AUSTRALIAN RAILROAD GROUP PTY. LTD. CONSOLIDATED STATEMENTS OF INCOME (U.S. dollars in thousands) (Unaudited - U.S. GAAP)
Three Months Ended Year Ended December 31, December 31, --------------------------- --------------------------- 2004 2003 2004 2003 ------------ ------------ ------------ ------------ REVENUES $ 85,882 $ 74,583 $ 333,647 $ 249,571 OPERATING EXPENSES 68,773 55,936 265,702 194,089 RESTRUCTURING COSTS - - - 267 TOTAL OPERATING EXPENSES 68,773 55,936 265,702 194,356 INCOME FROM OPERATIONS 17,109 18,647 67,945 55,215 INTEREST EXPENSE (7,370) (11,120) (28,438) (33,877) INTEREST INCOME 265 857 1,227 3,271 INCOME BEFORE TAX 10,004 8,384 40,734 24,609 PROVISION FOR INCOME TAX 3,028 1,361 12,264 3,866 NET INCOME $ 6,976 $ 7,023 $ 28,470 $ 20,743
Australian Railroad Group Pty. Ltd. is 50%-owned by Genesee & Wyoming Inc. AUSTRALIAN RAILROAD GROUP PTY. LTD. CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) (Unaudited - U.S. GAAP) December 31, December 31, 2004 2003 ------------- ------------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 21,217 $ 26,618 Accounts receivable, net 49,085 47,764 Materials and supplies 11,580 10,033 Prepaid expenses and other 3,055 3,069 Total current assets 84,937 87,484 PROPERTY AND EQUIPMENT, net 541,470 478,808 DEFERRED INCOME TAX ASSETS, net 77,325 80,193 OTHER ASSETS, net 8,522 5,476 Total assets $ 712,254 $ 651,961 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term debt $ - $ - Accounts payable 19,832 7,199 Accrued expenses 31,989 35,111 Current income tax liabilities 364 - Total current liabilities 52,185 42,310 LONG-TERM DEBT 383,425 367,892 DEFERRED INCOME TAX LIABILITIES, net 21,207 14,271 OTHER LONG-TERM LIABILITIES 2,177 2,031 FAIR VALUE OF INTEREST RATE SWAPS 9,788 9,133 SUBORDINATED NOTES TO STOCKHOLDERS - 11,562 Total non-current liabilities 416,597 404,889 REDEEMABLE PREFERRED STOCK OF STOCKHOLDERS 16,897 16,212 TOTAL STOCKHOLDERS' EQUITY 226,575 188,550 Total liabilities and stockholders' equity $ 712,254 $ 651,961 Australian Railroad Group Pty. Ltd. is 50%-owned by Genesee & Wyoming Inc. AUSTRALIAN RAILROAD GROUP PTY. LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) (Unaudited - U.S. GAAP) Year Ended December 31, ----------------------------- 2004 2003 ------------- ------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 28,470 $ 20,743 Adjustments to reconcile net income to net cash provided by operating activities- Depreciation and amortization 27,346 23,443 Deferred income taxes 11,847 11,283 Net gain on sale and impairment of assets (336) (2,081) Changes in assets and liabilities 4,829 (8,095) Net cash provided by operating activities 72,156 45,293 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment (69,519) (35,774) Proceeds from disposition of property and equipment 2,570 6,924 Transfer from restricted funds on deposit - 69,978 Net cash (used in) provided by investing activities (66,949) 41,128 CASH FLOWS FROM FINANCING ACTIVITIES: Payments on subordinated notes (10,710) - Payments on borrowings - (430,385) Proceeds from borrowings - 360,493 Net cash used in financing activities (10,710) (69,892) EFFECT OF EXCHANGE RATE DIFFERENCES ON CASH AND CASH EQUIVALENTS 102 4,207 (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (5,401) 20,736 CASH AND CASH EQUIVALENTS, beginning of period 26,618 5,882 CASH AND CASH EQUIVALENTS, end of period $ 21,217 $ 26,618 Australian Railroad Group Pty. Ltd. is 50%-owned by Genesee & Wyoming Inc. AUSTRALIAN RAILROAD GROUP PTY. LTD. Selected Consolidated Financial Information (U.S. dollars in thousands) (Unaudited - U.S. GAAP)
Three Months Ended December 31, ---------------------------------------------------------- 2004 2003 --------------------------- --------------------------- % of % of Amount Revenue Amount Revenue ------------ ------------ ------------ ------------ Revenues: Freight $ 70,573 82.2% $ 63,748 85.5% Non-freight 15,309 17.8% 10,835 14.5% Total railroad revenues $ 85,882 100.0% $ 74,583 100.0% Operating Expenses: Natural Classification Labor and benefits $ 15,835 18.4% $ 14,304 19.2% Equipment rents 321 0.4% 529 0.7% Purchased services 18,610 21.7% 16,813 22.5% Depreciation and amortization 7,501 8.7% 6,503 8.7% Diesel fuel used in operations 7,776 9.1% 5,142 6.9% Diesel fuel for sales to third parties 6,395 7.4% 2,149 2.9% Casualties and insurance 3,152 3.7% 2,124 2.9% Materials 3,115 3.6% 3,231 4.3% Net gain on sale and impairment of assets (712) -0.8% (1,265) -1.7% Other expenses 6,780 7.9% 6,406 8.6% Total operating expenses $ 68,773 80.1% $ 55,936 75.0% Functional Classification Transportation $ 33,410 38.9% $ 23,951 32.1% Maintenance of ways and structures 7,070 8.2% 6,809 9.1% Maintenance of equipment 7,875 9.2% 6,927 9.3% General and administrative 13,629 15.9% 13,011 17.5% Net gain on sale and impairment of assets (712) -0.8% (1,265) -1.7% Depreciation and amortization 7,501 8.7% 6,503 8.7% Total operating expenses $ 68,773 80.1% $ 55,936 75.0%
Australian Railroad Group Pty. Ltd. is 50%-owned by Genesee & Wyoming Inc. AUSTRALIAN RAILROAD GROUP PTY. LTD. Selected Consolidated Financial Information (U.S. dollars in thousands) (Unaudited - U.S. GAAP)
Year Ended December 31, ---------------------------------------------------------- 2004 2003 --------------------------- --------------------------- % of % of Amount Revenue Amount Revenue ------------ ------------ ------------ ------------ Revenues: Freight $ 278,939 83.6% $ 206,923 82.9% Non-freight 54,708 16.4% 42,648 17.1% Total railroad revenues $ 333,647 100.0% $ 249,571 100.0% Operating Expenses: Natural Classification Labor and benefits $ 59,566 17.8% $ 47,337 19.0% Equipment rents 2,519 0.7% 1,733 0.7% Purchased services 78,775 23.6% 60,096 24.1% Depreciation and amortization 27,346 8.2% 23,443 9.4% Diesel fuel used in operations 26,671 8.0% 15,900 6.4% Diesel fuel for sales to third parties 19,944 6.0% 6,756 2.7% Casualties and insurance 9,570 2.9% 8,568 3.4% Materials 13,726 4.1% 11,635 4.6% Net gain on sale and impairment of assets (336) -0.1% (2,081) -0.8% Other expenses 27,921 8.4% 20,969 8.4% Total operating expenses $ 265,702 79.6% $ 194,356 77.9% Functional Classification Transportation $ 125,279 37.6% $ 76,747 30.8% Maintenance of ways and structures 39,097 11.7% 32,694 13.1% Maintenance of equipment 32,849 9.8% 26,057 10.4% General and administrative 41,467 12.4% 37,496 15.0% Net gain on sale and impairment of assets (336) -0.1% (2,081) -0.8% Depreciation and amortization 27,346 8.2% 23,443 9.4% Total operating expenses $ 265,702 79.6% $ 194,356 77.9%
Australian Railroad Group Pty. Ltd. is 50%-owned by Genesee & Wyoming Inc. AUSTRALIAN RAILROAD GROUP PTY. LTD. Australian Railroad Freight Revenue, Carloads and Average Revenue Per Carload Comparison by Commodity Group (U.S. dollars in thousands, except average revenue per carload) (Unaudited)
Three Months Ended Three Months Ended December 31, 2004 December 31, 2003 ------------------------------------------ ------------------------------------------ Average Average Revenue Revenue Freight Per Freight Per Commodity Group Revenues Carloads Carload Revenues Carloads Carload ------------------------------ ------------ ------------ ------------ ------------ ------------ ------------ Grain $ 23,661 60,303 $ 392 $ 20,416 54,093 $ 377 Other Ores and Minerals 14,587 27,385 533 14,813 28,680 516 Iron Ore 12,612 52,198 242 10,598 47,461 223 Alumina 5,076 39,247 129 4,779 39,026 122 Bauxite 3,487 33,441 104 3,295 30,435 108 Hook and Pull (Haulage) 434 1,075 404 2,412 7,191 335 Gypsum 1,003 12,807 78 788 11,066 71 Other 9,713 17,142 567 6,647 15,836 420 Total $ 70,573 243,598 290 $ 63,748 233,788 273
Australian Railroad Group Pty. Ltd. is 50%-owned by Genesee & Wyoming Inc. AUSTRALIAN RAILROAD GROUP PTY. LTD. Australian Railroad Freight Revenue, Carloads and Average Revenue Per Carload Comparison by Commodity Group (U.S. dollars in thousands, except average revenue per carload) (Unaudited)
Year Ended Year Ended December 31, 2004 December 31, 2003 ------------------------------------------ ------------------------------------------ Average Average Revenue Revenue Freight Per Freight Per Commodity Group Revenues Carloads Carload Revenues Carloads Carload ------------------------------ ------------ ------------ ------------ ------------ ------------ ------------ Grain $ 101,983 265,712 $ 384 $ 61,125 158,462 $ 386 Other Ores and Minerals 58,384 109,418 534 48,782 107,257 455 Iron Ore 45,534 201,612 226 36,238 179,711 202 Alumina 19,666 157,168 125 16,459 153,685 107 Bauxite 12,732 125,793 101 11,363 126,865 90 Hook and Pull (Haulage) 1,713 7,414 231 5,498 13,337 412 Gypsum 3,662 50,394 73 2,915 45,548 64 Other 35,265 67,810 520 24,543 62,865 390 Total $ 278,939 985,321 283 $ 206,923 847,730 244
Australian Railroad Group Pty. Ltd. is 50%-owned by Genesee & Wyoming Inc. Free Cash Flow Description and Discussion Management views Free Cash Flow as an important financial measure of how well GWI is managing its assets. Subject to the limitations discussed below, Free Cash Flow is a useful indicator of cash flow that may be available for discretionary use by GWI. Free Cash Flow is defined as Net Cash Provided by Operating Activities less Net Cash Used in Investing Activities, excluding the Cost of Acquisitions. Key limitations of the Free Cash Flow measure include the assumptions that GWI will be able to refinance its existing debt when it matures and meet other cash flow obligations from financing activities, such as required dividend payments and principal payments on debt. Free Cash Flow is not intended to represent, and should not be considered more meaningful than, or as an alternative to, measures of cash flow determined in accordance with Generally Accepted Accounting Principles. The following table sets forth a reconciliation of GWI's Net Cash Provided by Operating Activities to GWI's Free Cash Flow: Years Ended December 31, --------------------------- 2004 2003 ------------ ------------ Net cash provided by operating activities $ 54,987 $ 46,917 Net cash used in investing activities (24,776) (75,889) Cash used for acquisitions 2,909 54,952 Free cash flow $ 33,120 $ 25,980 SOURCE Genesee & Wyoming Inc. -0- 02/15/2005 /CONTACT: John C. Hellmann, Chief Financial Officer, Genesee & Wyoming Inc., +1-203-629-3722/ /Web site: http://www.gwrr.com / -