EX-99.1 2 gw3266ex991.txt Exhibit 99.1 GENESEE & WYOMING REPORTS SECOND QUARTER RESULTS GREENWICH, Conn., Aug. 2, 2005 /PRNewswire-FirstCall/ -- Genesee & Wyoming Inc. (GWI) (NYSE: GWR) reported today that net income in the second quarter of 2005 increased 4.9% to $11.4 million, compared to net income of $10.8 million in the second quarter of 2004. GWI's diluted earnings per share in the second quarter of 2005 increased 5.1% to $0.41 with 27.7 million shares outstanding, compared to diluted earnings per share of $0.39 with 27.5 million shares outstanding in the second quarter of 2004. GWI's results in the second quarter of 2005 include a $0.7 million non-cash foreign currency translation adjustment on intercompany debt in Mexico, which reduced GWI's diluted EPS by approximately $0.02. North American Results In the second quarter of 2005, North American revenue increased 25.2% to $92.7 million, compared to $74.1 million in the second quarter of 2004. This $18.7 million increase in revenue included $9.5 million in same-railroad growth, $5.0 million from railroads acquired from Rail Management Corporation on June 1, 2005, $2.7 million from the Tazewell & Peoria Railroad, and $1.5 million from two short-lines recently acquired from CSX Corp. The 12.9% growth in same-railroad freight revenue was balanced across multiple commodity groups, with particular strength in paper, which increased by $1.8 million, or 18.7%; lumber and forest products, which increased by $1.7 million, or 26.8%; minerals and stone, which increased by $1.0 million, or 18.0%; and metals, which increased by $1.0 million, or 17.9%. In addition, same-railroad non-freight revenue increased by $2.3 million, or 12.9%. North American operating income in the second quarter of 2005 increased 18.0% to $16.0 million, compared with $13.6 million in the second quarter of 2004. The North American operating ratio was 82.7% in the second quarter of 2005, compared with 81.7% in the second quarter of 2004. GWI's results in the second quarter of 2005 included $0.6 million of legal expense related to the settlement of a commercial dispute, while results for the second quarter of 2004 included $0.5 million of equity issuance expense associated with last year's secondary offering. The Company's operating results for the second quarter of 2005 were also unfavorably impacted by a 35.7% increase in the price of diesel fuel, as the average price per gallon reached $1.71. North American traffic in the second quarter of 2005 increased 24,181 carloads, or 15.4%, to 181,643 carloads. Same-railroad traffic in the second quarter of 2005 increased 5,210 carloads, or 3.3%. Revenue per carload in the second quarter of 2005 increased 7.0% to $380. Same-railroad revenue per carload increased 9.3% in the second quarter of 2005 due to a combination of rate increases, fuel escalation provisions and shipments of certain higher yielding traffic. GWI's North American Free Cash Flow for the six months ended June 30, was $28.8 million (defined as Cash from Operations of $39.4 million less Cash used in Investing of $248.8 million, excluding the Cost of Acquisitions of $238.2 million) compared with $19.4 million of Free Cash Flow (defined as Cash from Operations of $30.7 million less Cash used in Investing of $11.3 million) for the six months ended June 30, 2004. See the attached schedule for a description and discussion of Free Cash Flow. Australian Results (Equity Accounting) In Australia, revenue at GWI's 50%-owned subsidiary, Australian Railroad Group (ARG), increased 5.3% to US$86.0 million in the second quarter of 2005, compared with US$81.7 million in the second quarter of 2004. The US$4.3 million increase in revenue was principally due to a 30.5% increase in non-freight revenue resulting from higher third-party fuel sales and an increase in track and crossing work for third parties. ARG's freight revenue for the quarter was unchanged year over year, although the mix of business was significantly altered. A US$7.4 million reduction in grain shipments was offset by a US$3.7 million increase in iron ore shipments, a US$1.5 million increase in alumina and bauxite shipments and an approximately US$2.3 million increase in all other shipments, including a new intermodal service between Melbourne and Adelaide which commenced in June 2005. In Australian dollars, ARG's total revenue declined 2.1% in the second quarter of 2005 compared with the second quarter of 2004. In comparing the second quarter of 2005 with the second quarter of 2004, the Australian dollar strengthened 6.6%. ARG's operating income in the second quarter of 2005 was US$13.6 million, compared with operating income of US$16.5 million in the second quarter of 2004. The operating ratio was 84.2% in the second quarter of 2005, compared with 79.9% in the second quarter of 2004. ARG's operating results for the second quarter of 2005 were adversely impacted by a 39.9% increase in the price of diesel fuel compared to the second quarter of 2004. In addition, ARG continues to incur significant hiring and training costs for new locomotive drivers in preparation for increasing rail shipments in the second half of 2005 and into 2006. Equity income from ARG was US$2.3 million in the second quarter of 2005, compared with US$3.5 million of equity income in the second quarter of 2004. Mortimer B. Fuller III, Chairman and Chief Executive Officer of GWI, commented, "We enter the second half of 2005 with our business in excellent condition and our free cash flow generation at record levels. As demonstrated by the second quarter, our North American operations are performing well and are more than offsetting the high price of diesel fuel. Meanwhile, the integration of the Rail Management railroads is proceeding according to plan and we expect a significant contribution for the rest of the year. This smooth transition is thanks to the strength of our management team which has been working tirelessly to achieve a successful outcome." Mr. Fuller continued, "In Australia, while ARG's results for the second quarter have suffered from higher fuel prices, lower grain shipments and delays in new iron ore and alumina traffic, ARG's outlook has never been brighter. Much of the fuel cost increase is being gradually recovered through escalation provisions, the number of contract drivers has been significantly reduced from a year ago and equipment maintenance in Western Australia has been brought in house. Grain shipments have recently improved to provide storage capacity for this year's harvest which begins in the fourth quarter. Although delayed, iron ore and alumina shipments will come. A significant new intermodal contract from Melbourne to Adelaide has begun. ARG will see these benefits in part in the second half of 2005 and in full in 2006. After a series of major capital expenditure projects to support the expansion of its business, ARG's free cash flow generation is expected to strengthen substantially in 2006." Earnings Call Information As previously announced, GWI's conference call to discuss financial results for the first quarter will be held today at 10:00AM (Eastern Daylight Time). The dial-in number for the teleconference is 877-209-0397 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. About GWI 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 9,100 miles of owned and leased track and more than 3,000 additional miles under track access arrangements. Disclaimer Regarding Forward Looking Statements 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 Six Months Ended June 30, June 30, ---------------------------- ---------------------------- 2005 2004 2005 2004 ------------ ------------ ------------ ------------ REVENUES $ 92,742 $ 74,062 $ 176,824 $ 146,464 EQUITY ISSUANCE EXPENSE - 523 - 523 OPERATING EXPENSES 76,722 59,958 146,544 120,801 TOTAL OPERATING EXPENSES 76,722 60,481 146,544 121,324 INCOME FROM OPERATIONS 16,020 13,581 30,280 25,140 INTEREST EXPENSE (2,837) (2,283) (4,956) (4,718) OTHER INCOME, NET (475) 231 (380) 425 INCOME BEFORE INCOME TAXES AND EQUITY EARNINGS 12,708 11,529 24,944 20,847 PROVISION FOR INCOME TAXES 3,842 4,351 7,556 7,984 INCOME BEFORE EQUITY EARNINGS 8,866 7,178 17,388 12,863 EQUITY IN NET INCOME OF INTERNATIONAL AFFILIATES: AUSTRALIAN RAILROAD GROUP 2,280 3,475 4,571 7,217 SOUTH AMERICA 219 183 306 223 NET INCOME 11,365 10,836 22,265 20,303 IMPACT OF PREFERRED STOCK OUTSTANDING - 178 - 479 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 11,365 $ 10,658 $ 22,265 $ 19,824 BASIC EARNINGS PER SHARE: NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 0.46 $ 0.44 $ 0.91 $ 0.82 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 24,534 24,171 24,476 24,108 DILUTED EARNINGS PER SHARE: NET INCOME $ 0.41 $ 0.39 $ 0.80 $ 0.72 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 27,713 27,544 27,683 27,490
GENESEE & WYOMING INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) June 30, December 31, 2005 2004 ------------ ------------ ASSETS CURRENT ASSETS: Cash and cash equivalents $ 19,254 $ 14,451 Accounts receivable, net 83,125 64,537 Materials and supplies 6,240 5,263 Prepaid expenses and other 5,441 7,784 Deferred income tax assets, net 3,191 3,190 Total current assets 117,251 95,225 PROPERTY AND EQUIPMENT, net 525,477 337,024 INVESTMENT IN UNCONSOLIDATED AFFILIATES 134,215 132,528 GOODWILL 24,829 24,682 INTANGIBLE ASSETS, net 137,442 77,778 OTHER ASSETS, net 11,246 10,014 Total assets $ 950,460 $ 677,251 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term debt $ 4,471 $ 6,356 Accounts payable 86,983 63,794 Accrued expenses 27,299 21,598 Total current liabilities 118,753 91,748 LONG-TERM DEBT, less current portion 342,080 125,881 DEFERRED INCOME TAX LIABILITIES, net 54,189 50,517 DEFERRED ITEMS - grants from governmental agencies 48,305 46,229 DEFERRED GAIN - sale/leaseback 3,359 3,495 OTHER LONG-TERM LIABILITIES 15,273 14,122 MINORITY INTEREST 3,329 3,559 REDEEMABLE CONVERTIBLE PREFERRED STOCK TOTAL STOCKHOLDERS' EQUITY 365,172 341,700 Total liabilities and stockholders' equity $ 950,460 $ 677,251 GENESEE & WYOMING INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
Six Months Ended ---------------------------- June 30, June 30, 2005 2004 ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 22,265 $ 20,303 Adjustments to reconcile net income to net cash provided by operating activities- Depreciation and amortization 10,659 9,484 Amortization of restricted stock 178 - Deferred income taxes 3,503 2,929 Net loss (gain) on sale and impairment of assets 2 (94) Equity earnings of unconsolidated international affiliates (4,877) (7,440) Minority interest (income) expense (103) 102 Tax benefit realized upon exercise of stock options 309 956 Valuation adjustment of split dollar life insurance 74 - Changes in assets and liabilities, net of effect of acquisitions -- Accounts receivable (5,499) (605) Materials and supplies 231 (744) Prepaid expenses and other 2,993 (1,138) Accounts payable and accrued expenses 7,867 7,263 Other assets and liabilities, net 1,755 (305) Net cash provided by operating activities 39,357 30,711 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment, net of proceeds from government grants (11,475) (11,561) Purchase of Rail Partners, net of cash received (238,204) - Cash received from unconsolidated international affiliates 606 - Proceeds from disposition of property and equipment, including sale/leasebacks 281 294 Net cash used in investing activities (248,792) (11,267) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on long-term borrowings, including capital leases (89,129) (99,407) Proceeds from issuance of long-term debt 302,800 76,300 Debt issuance costs (1,629) - Proceeds from employee stock purchases 1,473 1,937 Dividend paid on Redeemable Convertible Preferred Stock - (411) Net cash used in financing activities 213,515 (21,581) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 723 (531) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 4,803 (2,668) CASH AND CASH EQUIVALENTS, beginning of period 14,451 11,118 CASH AND CASH EQUIVALENTS, end of period $ 19,254 $ 8,450
GENESEE & WYOMING INC. AND SUBSIDIARIES Selected Consolidated Financial Information (dollars in thousands) (Unaudited)
Three Months Ended June 30, ------------------------------------------------------------ 2005 2004 ---------------------------- ---------------------------- % of % of Amount Revenue Amount Revenue ------------ ------------ ------------ ------------ Revenues: Freight $ 69,030 74.4% $ 55,907 75.5% Non-freight 23,712 25.6% 18,155 24.5% Total revenues $ 92,742 100.0% $ 74,062 100.0% Operating Expense Comparison: Natural Classification Labor and benefits $ 29,570 31.9% $ 24,950 33.7% Equipment rents 8,115 8.8% 6,334 8.6% Purchased services 6,065 6.5% 4,498 6.1% Depreciation and amortization 5,669 6.1% 4,754 6.4% Diesel fuel 8,877 9.6% 5,646 7.6% Casualties and insurance 5,502 5.9% 3,653 4.9% Materials 4,820 5.2% 3,611 4.9% Net loss on sale and impairment of assets 68 0.1% - 0.0% Other expenses 8,036 8.6% 7,035 9.5% Total operating expenses $ 76,722 82.7% $ 60,481 81.7% Functional Classification Transportation $ 31,827 34.3% $ 23,360 31.5% Maintenance of ways and structures 8,558 9.2% 7,599 10.3% Maintenance of equipment 13,675 14.7% 11,048 14.9% General and administrative 16,925 18.3% 13,720 18.6% Net loss on sale and impairment of assets 68 0.1% - 0.0% Depreciation and amortization 5,669 6.1% 4,754 6.4% Total operating expenses $ 76,722 82.7% $ 60,481 81.7%
GENESEE & WYOMING INC. AND SUBSIDIARIES Selected Consolidated Financial Information (dollars in thousands) (Unaudited)
Six Months Ended June 30, ------------------------------------------------------------ 2005 2004 ---------------------------- ---------------------------- % of % of Amount Revenue Amount Revenue ------------ ------------ ------------ ------------ Revenues: Freight $ 132,164 74.7% $ 110,717 75.6% Non-freight 44,660 25.3% 35,747 24.4% Total revenues $ 176,824 100.0% $ 146,464 100.0% Operating Expense Comparison: Natural Classification Labor and benefits $ 58,454 33.1% $ 51,346 35.1% Equipment rents 16,005 9.1% 13,215 9.0% Purchased services 11,195 6.3% 8,779 6.0% Depreciation and amortization 10,659 6.0% 9,484 6.5% Diesel fuel 16,814 9.5% 11,291 7.7% Casualties and insurance 9,134 5.2% 7,360 5.0% Materials 9,028 5.1% 7,319 5.0% Net (gain) loss on sale and impairment of assets 2 0.0% (94) -0.1% Other expenses 15,253 8.6% 12,624 8.6% Total operating expenses $ 146,544 82.9% $ 121,324 82.8% Functional Classification Transportation $ 60,713 34.3% $ 48,026 32.8% Maintenance of ways and structures 16,450 9.3% 14,486 9.9% Maintenance of equipment 26,780 15.1% 22,729 15.5% General and administrative 31,940 18.2% 26,693 18.2% Net (gain) loss on sale and impairment of assets 2 0.0% (94) -0.1% Depreciation and amortization 10,659 6.0% 9,484 6.5% Total operating expenses $ 146,544 82.9% $ 121,324 82.8%
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 June 30, 2005 June 30, 2004 ------------------------------------------ ------------------------------------------ Average Average Revenue Revenue Freight Per Freight Per Commodity Group Revenues Carloads Carload Revenues Carloads Carload ------------------------------ ------------ ------------ ------------ ------------ ------------ ------------ Paper $ 13,310 30,686 $ 434 $ 9,770 23,206 $ 421 Coal, Coke & Ores 13,144 49,786 264 12,062 49,259 245 Lumber & Forest Products 8,801 24,536 359 6,327 19,428 326 Minerals & Stone 7,225 17,724 408 5,693 15,728 362 Metals 6,988 19,754 354 5,450 17,530 311 Petroleum Products 6,835 8,730 783 6,134 8,185 749 Chemicals-Plastics 5,249 9,768 537 4,103 7,808 525 Farm & Food Products 3,689 11,035 334 2,947 6,914 426 Autos & Auto Parts 2,053 4,254 483 1,854 4,213 440 Intermodal 497 1,155 430 630 1,736 363 Other 1,239 4,215 294 937 3,455 271 Totals $ 69,030 181,643 380 $ 55,907 157,462 355
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)
Six Months Ended Six Months Ended June 30, 2005 June 30, 2004 ------------------------------------------ ------------------------------------------ Average Average Revenue Revenue Freight Per Freight Per Commodity Group Revenues Carloads Carload Revenues Carloads Carload ------------------------------ ------------ ------------ ------------ ------------ ------------ ------------ Coal, Coke & Ores $ 25,412 95,644 $ 266 $ 22,799 93,301 $ 244 Paper 25,011 56,095 446 19,290 46,190 418 Lumber & Forest Products 16,352 45,487 359 12,165 37,462 325 Petroleum Products 13,706 17,513 783 12,448 16,495 755 Metals 13,342 37,919 352 11,105 35,368 314 Minerals & Stone 12,826 31,789 403 10,829 28,393 381 Chemicals-Plastics 9,922 19,073 520 7,975 15,276 522 Farm & Food Products 8,448 24,407 346 7,739 18,366 421 Autos & Auto Parts 3,883 8,208 473 3,596 8,410 428 Intermodal 998 2,298 434 1,182 3,100 381 Other 2,264 7,996 283 1,589 6,309 252 Totals $ 132,164 346,429 382 $ 110,717 308,670 359
AUSTRALIAN RAILROAD GROUP PTY. LTD. CONSOLIDATED STATEMENTS OF INCOME (U.S. dollars in thousands) (Unaudited - U.S. GAAP)
Three Months Ended Six Months Ended June 30, June 30, ---------------------------- ---------------------------- 2005 2004 2005 2004 ------------ ------------ ------------ ------------ REVENUES $ 86,041 $ 81,717 $ 170,420 $ 164,070 OPERATING EXPENSES 72,452 65,257 143,029 129,970 INCOME FROM OPERATIONS 13,589 16,460 27,391 34,100 INTEREST EXPENSE (7,284) (6,855) (14,696) (14,203) OTHER INCOME, NET 228 338 407 741 INCOME BEFORE TAX 6,533 9,943 13,102 20,638 PROVISION FOR INCOME TAX 1,976 2,994 3,959 6,206 NET INCOME $ 4,557 $ 6,949 $ 9,143 $ 14,432
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)
June 30, December 31, 2005 2004 ------------ ------------ ASSETS CURRENT ASSETS: Cash and cash equivalents $ 14,663 $ 21,217 Accounts receivable, net 51,794 49,085 Materials and supplies 12,301 11,580 Prepaid expenses and other 5,312 3,055 Total current assets 84,070 84,937 PROPERTY AND EQUIPMENT, net 539,699 541,470 DEFERRED INCOME TAX ASSETS, net 73,076 77,325 OTHER ASSETS, net 8,133 8,522 Total assets $ 704,978 $ 712,254 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 15,767 $ 19,832 Accrued expenses 25,655 31,989 Current income tax liabilities 285 364 Total current liabilities 41,707 52,185 LONG-TERM DEBT 380,650 383,425 DEFERRED INCOME TAX LIABILITIES, net 23,054 21,207 OTHER LONG-TERM LIABILITIES 4,733 2,177 FAIR VALUE OF INTEREST RATE SWAPS 7,538 9,788 Total non-current liabilities 415,975 416,597 REDEEMABLE PREFERRED STOCK OF STOCKHOLDERS 16,439 16,897 TOTAL STOCKHOLDERS' EQUITY 230,857 226,575 Total liabilities and stockholders' equity $ 704,978 $ 712,254
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)
Six Months Ended ---------------------------- June 30, June 30, 2005 2004 ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 9,143 $ 14,432 Adjustments to reconcile net income to net cash provided by operating activities- Depreciation and amortization 15,922 13,097 Deferred income taxes 4,631 6,367 Net (gain) loss on sale and impairment of assets (319) 471 Changes in assets and liabilities (14,476) (3,675) Net cash provided by operating activities 14,901 30,692 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment (30,301) (22,883) Proceeds from disposition of property and equipment 1,692 835 Transfer to restricted funds on deposit - - Net cash used in investing activities (28,609) (22,048) CASH FLOWS FROM FINANCING ACTIVITIES: Payments on borrowings - - Proceeds from borrowings 7,707 - Net cash provided by financing activities 7,707 - EFFECT OF EXCHANGE RATE DIFFERENCES ON CASH AND CASH EQUIVALENTS (553) (2,285) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (6,554) 6,359 CASH AND CASH EQUIVALENTS, beginning of period 21,217 26,618 CASH AND CASH EQUIVALENTS, end of period $ 14,663 $ 32,977
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 June 30, ------------------------------------------------------------ 2005 2004 ---------------------------- ---------------------------- % of % of Amount Revenue Amount Revenue ------------ ------------ ------------ ------------ Revenues: Freight $ 67,849 78.9% $ 67,773 82.9% Non-freight 18,192 21.1% 13,944 17.1% Total railroad revenues $ 86,041 100.0% $ 81,717 100.0% Operating Expenses: Natural Classification Labor and benefits $ 17,657 20.5% $ 14,945 18.3% Equipment rents 640 0.7% 821 1.0% Purchased services 16,528 19.2% 20,263 24.8% Depreciation and amortization 8,320 9.7% 6,383 7.8% Diesel fuel used in operations 8,126 9.5% 5,871 7.2% Diesel fuel for sales to third parties 6,046 7.0% 4,666 5.7% Casualties and insurance 2,237 2.6% 1,339 1.6% Materials 3,499 4.1% 3,549 4.3% Net loss (gain) on sale and impairment of assets 8 0.0% (13) 0.0% Other expenses 9,391 10.9% 7,433 9.2% Total operating expenses $ 72,452 84.2% $ 65,257 79.9% Functional Classification Transportation $ 34,560 40.2% $ 30,454 37.3% Maintenance of ways and structures 9,925 11.5% 10,587 13.0% Maintenance of equipment 7,003 8.1% 7,864 9.6% General and administrative 12,636 14.7% 9,982 12.2% Net loss (gain) on sale and impairment of assets 8 0.0% (13) 0.0% Depreciation and amortization 8,320 9.7% 6,383 7.8% Total operating expenses $ 72,452 84.2% $ 65,257 79.9%
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)
Six Months Ended June 30, ------------------------------------------------- 2005 2004 ----------------------- ----------------------- % of % of Amount Revenue Amount Revenue ---------- ---------- ---------- ---------- Revenues: Freight $ 137,188 80.5% $ 138,7 84.5% Non-freight 33,232 19.5% 25,357 15.5% Total railroad revenues $ 170,420 100.0% $ 164,070 100.0% Operating Expenses: Natural Classification Labor and benefits $ 34,761 20.4% $ 29,201 17.8% Equipment rents 1,523 0.9% 1,531 0.9% Purchased services 33,898 19.9% 39,325 24.0% Depreciation and amortization 15,922 9.3% 13,097 8.0% Diesel fuel used in operations 15,345 9.0% 12,026 7.3% Diesel fuel for sales to third parties 11,756 6.9% 8,164 5.0% Casualties and insurance 6,866 4.0% 4,798 2.9% Materials 7,150 4.2% 6,852 4.2% Net (gain) loss on sale and impairment of assets (319) -0.2% 471 0.3% Other expenses 16,127 9.5% 14,505 8.8% Total operating expenses $ 143,029 83.9% $ 129,970 79.2% Functional Classification Transportation $ 67,129 39.4% $ 60,807 37.1% Maintenance of ways and structures 19,352 11.4% 19,643 12.0% Maintenance of equipment 15,009 8.8% 15,104 9.2% General and administrative 25,936 15.2% 20,848 12.6% Net (gain) loss on sale and impairment of assets (319) -0.2% 471 0.3% Depreciation and amortization 15,922 9.3% 13,097 8.0% Total operating expenses $ 143,029 83.9% $ 129,970 79.2%
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) (Unaudited)
Three Months Ended Three Months Ended June 30, 2005 June 30, 2004 ------------------------------------ ------------------------------------ Average Average Revenue Revenue Freight Per Freight Per Revenues Carloads Carload Revenues Carloads Carload ---------- ---------- ---------- ---------- ---------- ---------- Commodity Group Grain $ 18,248 45,549 $ 401 $ 25,670 69,661 $ 368 Other Ores and Minerals 15,070 26,225 575 14,055 25,657 548 Iron Ore 14,587 56,944 256 10,872 51,050 213 Alumina 5,400 39,309 137 4,733 39,720 119 Bauxite 3,767 36,232 104 2,920 30,034 97 Hook and Pull (Haulage) 1,147 1,544 743 451 2,521 179 Gypsum 1,188 12,563 95 903 12,614 72 Other 8,442 18,987 445 8,169 16,629 491 Total $ 67,849 237,353 286 $ 67,773 247,886 273
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) (Unaudited)
Six Months Ended Six Months Ended June 30, 2005 June 30, 2004 ------------------------------------ ------------------------------------ Average Average Revenue Revenue Freight Per Freight Per Revenues Carloads Carload Revenues Carloads Carload ---------- ---------- ---------- ---------- ---------- ---------- Commodity Group Grain $ 40,362 100,169 $ 403 $ 51,931 136,224 $ 381 Other Ores and Minerals 30,647 52,905 579 29,133 53,815 541 Iron Ore 27,220 109,933 248 22,334 101,529 220 Alumina 10,960 79,370 138 9,752 79,136 123 Bauxite 7,429 70,202 106 6,132 60,251 102 Hook and Pull (Haulage) 1,485 2,229 666 915 5,297 173 Gypsum 2,176 23,719 92 1,911 25,407 75 Other 16,909 36,795 460 16,605 33,822 491 Total $ 137,188 475,322 289 $ 138,713 495,481 280
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: Six Months Ended June 30, --------------------------- 2005 2004 ------------ ------------ Net cash provided by operating activities $ 19,724 $ 30,711 Net cash used in investing activities (248,792) (11,267) Net cash used for acquisitions 238,204 - Free cash flow $ 28,769 $ 19,444 SOURCE Genesee & Wyoming Inc. -0- 08/02/2005 /CONTACT: T.J. Gallagher, CFO of Genesee & Wyoming Inc., +1-203-629-3722, tjgallagher@gwrr.com/ /Web site: http://www.gwrr.com / (GWR)