EX-99.1 2 gw4795ex991.txt EXHIBIT 99.1 Exhibit 99.1 GENESEE & WYOMING REPORTS 50.0 PERCENT INCREASE IN EARNINGS PER SHARE FOR THE FOURTH QUARTER OF 2005; ANNOUNCES THREE FOR TWO SPLIT OF COMMON STOCK GREENWICH, Conn., February 14, 2006 /PRNewswire-FirstCall/ -- Genesee & Wyoming Inc. (GWI) (NYSE: GWR) reported that net income in the fourth quarter of 2005 increased 50.9 percent to $10.8 million, compared to net income of $7.2 million in the fourth quarter of 2004. GWI's diluted earnings per share in the fourth quarter of 2005 increased 50.0 percent to $0.39 with 28.0 million shares outstanding, compared to diluted earnings per share of $0.26 with 27.6 million shares outstanding in the fourth quarter of 2004. GWI's results for the fourth quarter of 2005 included: (i) $0.7 million of after-tax expense (or $0.03 per share) for the cost of stock options due to the early adoption of FAS123R (ii) $0.9 million of after-tax expense (or $0.03 per share) related to an accrual for historical land tax liabilities at the Australian Railroad Group (ARG) and (iii) $0.5 million of after-tax expense (or $0.02 per share) associated with the sale of GWI's Western Australian operations. In addition, the adverse impact of Hurricane Stan on GWI's Mexican operations was $1.4 million after-tax (or $0.05 per share) in comparing the fourth quarter of 2005 with the fourth quarter of 2004. GWI's results for the fourth quarter of 2004 included: (i) a $1.1 million after-tax charge (or $0.04 per share) related to its debt refinancing, and (ii) a $1.0 million tax accrual (or $0.04 per share) related to an increase in its projected U.S. tax rate. GWI also announced today that its Board of Directors approved a three for two split of Class A and Class B common stock. The stock split will be effected in the form of a 50 percent common stock dividend, payable March 14, 2006, to shareholders of record as of February 28, 2006. (Per share amounts reflected herein have not been adjusted for the stock split.) North American Results In the fourth quarter of 2005, GWI's North American revenue increased 29.0 percent to $103.3 million, compared to $80.1 million in the fourth quarter of 2004. Of this $23.2 million increase in revenue, $4.6 million was same-railroad revenue growth in the U.S. and Canada, $18.0 million was from the acquisition of rail lines from Rail Management Corporation, $1.4 million was from a railroad acquired from CSX and $1.5 million was from a full quarter of operations from the Tazewell and Peoria Railroad, partially offset by a $2.3 million decrease in revenue in Mexico due to Hurricane Stan. The 6.6 percent growth in same-railroad revenue in the U.S. and Canada was spread across multiple commodity groups, with particular strength in coal shipments, which increased $1.9 million, or 17.9 percent, and pulp and paper, which increased $1.1 million, or 10.1 percent. GWI's North American operating income in the fourth quarter of 2005 increased 41.7 percent to $16.6 million, compared with $11.7 million in the fourth quarter of 2004. The North American operating ratio improved by 1.4 percent to 84.0 percent in the fourth quarter of 2005, compared to an operating ratio of 85.4 percent in the fourth quarter of 2004. GWI's Mexican business had an operating loss of $0.9 million in the fourth quarter of 2005 compared to operating income of $1.1 million in the fourth quarter of 2004. Excluding Mexico, GWI's North American operating ratio improved from 85.0 percent in the fourth quarter of 2004 to 81.8 percent in the fourth quarter of 2005. Australian Results Revenue at GWI's 50 percent-owned subsidiary, Australian Railroad Group, increased 1.1 percent to US$86.8 million in the fourth quarter of 2005, compared to US$85.9 million in the fourth quarter of 2004. This US$0.9 million improvement in revenue was composed of a US$2.7 million increase in iron ores and a US$1.8 million increase in all other revenues, partially offset by a decline of US$3.6 million in grain shipments. In Australian dollars, ARG's revenue increased 3.0 percent in the fourth quarter of 2005 compared to the fourth quarter of 2004. ARG's operating income in the fourth quarter of 2005 was US$14.6 million, compared to operating income of US$17.1 million in the fourth quarter of 2004. ARG's operating ratio was 83.2 percent in the fourth quarter of 2005, compared to 80.1 percent in the fourth quarter of 2004. The operating ratio in the fourth quarter of 2005 was adversely impacted by 2.9 percent due to a US$2.5 million accrual related to historical land tax liabilities. Equity income from ARG in the fourth quarter of 2005 was US$2.5 million, including the US$0.9 million impact of the land tax accrual, compared to US$3.5 million in the fourth quarter of 2004. In comparing the fourth quarter of 2005 to the fourth quarter of 2004, the Australian dollar weakened 0.9 percent. Annual Consolidated Results For the year ended December 31, 2005, GWI reported net income of $50.1 million, of which $40.1 million (79.9 percent) was from North America, $9.5 million (18.9 percent) was from Australia and $0.6 million (1.2 percent) was from South America. This represents a 33.3 percent increase over $37.6 million of net income reported in the year ended December 31, 2004. GWI's diluted earnings per share increased 32.4 percent to $1.80 in 2005 (with 27.8 million shares outstanding), compared to $1.36 in 2004 (with 27.4 million shares outstanding). For the year ended December 31, 2005, GWI's North American operations generated Free Cash Flow of $41.0 million (defined as Cash from Operations of $68.1 million less Cash used in Investing of $271.8 million, excluding Cash used for Acquisitions of $ 244.7 million) compared with $33.1 million (defined as Cash from Operations of $55.4 million less Cash used in Investing of $25.2 million, excluding Cash used for Acquisitions of $2.9 million) in the same period of 2004. 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, "Our U.S. and Canada businesses performed well in the quarter and generated record results for the tenth consecutive year since our IPO in 1996. Most importantly, this performance increased our free cash flow to a record level for the full year 2005. The stock split continues our ongoing efforts to improve the liquidity of our common stock and highlights the strong momentum of our business." Mr. Fuller continued, "In Australia, grain traffic from a better than average harvest started moving in December and the iron ore traffic continued to grow. As a result, sequential operating performance improvement from the third quarter was even better than expected." Fuller added, "As a result of Hurricane Stan in October 2005, 1.6 miles of track were washed out and 25 bridges were either damaged or destroyed. We have recently completed and submitted to the Mexican authorities a plan for the reconstruction of the line damaged last October by Hurricane Stan. This plan contemplates that reconstruction would take five to seven months once agreement on funding has been finalized with the government." 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 [888-428-4478] 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 Genesee & Wyoming Inc. 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 9,300 miles of owned and leased track and more than 3,000 additional miles under track access arrangements. 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 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. GWI disclaims any intention to update the current expectations or 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, ---------------------------- ---------------------------- 2005 2004 2005 2004 ------------ ------------ ------------ ------------ REVENUES $ 103,316 $ 80,076 $ 385,389 $ 303,784 EQUITY ISSUANCE EXPENSE - - - 542 OPERATING EXPENSES 86,743 68,378 314,458 253,203 INCOME FROM OPERATIONS 16,573 11,698 70,931 50,039 INTEREST EXPENSE (5,025) (4,072) (14,900) (11,142) OTHER INCOME (EXPENSE), NET 78 (333) (218) (131) INCOME BEFORE INCOME TAXES AND EQUITY EARNINGS 11,626 7,293 55,813 38,766 PROVISION FOR INCOME TAXES 3,452 3,791 15,756 16,059 INCOME BEFORE EQUITY EARNINGS 8,174 3,502 40,057 22,707 EQUITY IN NET INCOME OF INTERNATIONAL AFFILIATES: AUSTRALIAN RAILROAD GROUP 2,511 3,489 9,468 14,235 SOUTH AMERICA 141 181 610 677 NET INCOME 10,826 7,172 50,135 37,619 IMPACT OF PREFERRED STOCK OUTSTANDING - - - 479 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 10,826 $ 7,172 $ 50,135 $ 37,140 BASIC EARNINGS PER SHARE: NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 0.44 $ 0.29 $ 2.04 $ 1.54 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 24,759 24,328 24,605 24,138 DILUTED EARNINGS PER SHARE: NET INCOME $ 0.39 $ 0.26 $ 1.80 $ 1.36 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 28,037 27,644 27,808 27,402
GENESEE & WYOMING INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) December 31, December 31, 2005 2004 ------------ ------------ ASSETS CURRENT ASSETS: Cash and cash equivalents $ 18,669 $ 14,451 Accounts receivable, net 91,134 64,537 Materials and supplies 6,765 5,263 Prepaid expenses and other 8,298 7,784 Deferred income tax assets, net 4,230 3,190 Total current assets 129,096 95,225 PROPERTY AND EQUIPMENT, net 535,994 337,024 INVESTMENT IN UNCONSOLIDATED AFFILIATES 136,443 132,528 GOODWILL 31,233 24,682 INTANGIBLE ASSETS, net 135,444 77,778 OTHER ASSETS, net 12,388 10,014 Total assets $ 980,598 $ 677,251 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term debt $ 4,726 $ 6,356 Accounts payable 87,496 63,794 Accrued expenses 28,270 21,598 Total current liabilities 120,492 91,748 LONG-TERM DEBT, less current portion 333,625 125,881 DEFERRED INCOME TAX LIABILITIES, net 59,891 50,517 DEFERRED ITEMS - grants from governmental agencies 48,242 46,229 DEFERRED GAIN - sale/leaseback 3,217 3,495 OTHER LONG-TERM LIABILITIES 13,982 14,122 MINORITY INTEREST 3,329 3,559 TOTAL STOCKHOLDERS' EQUITY 397,820 341,700 Total liabilities and stockholders' equity $ 980,598 $ 677,251 GENESEE & WYOMING INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
Year Ended December 31, ---------------------------- 2005 2004 ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 50,135 $ 37,619 Adjustments to reconcile net income to net cash provided by operating activities- Depreciation and amortization 24,575 19,243 Amortization of restricted stock 663 189 Compensation cost related to stock options 1,816 - Excess tax benefit from share-based payment arrangements (758) - Deferred income taxes 8,428 7,856 Tax benefit realized upon exercise of stock options 363 1,545 Net gain on sale and impairment of assets (3,207) (13) Write off of deferred financing fees from early extinguishment of debt - 1,611 Equity earnings of unconsolidated international affiliates (10,077) (14,911) Minority interest (income) expense (31) 194 Changes in assets and liabilities, net of effect of acquisitions - Accounts receivable (13,039) (9,210) Materials and supplies (245) 9 Prepaid expenses and other 149 (1,567) Accounts payable and accrued expenses 9,184 12,846 Other assets and liabilities, net 141 35 Net cash provided by operating activities 68,097 55,446 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment, net of proceeds from government grants (32,098) (28,072) Purchase of rail properties from Rail Management Corporation, net of $4.9 million cash received (238,204) - Additional purchase price for Genesee Rail-One (6,500) - Purchase of Pawnee Transloading Company Inc., net of cash received, Homer City and Savannah Wharf rail properties - (2,909) Valuation adjustment of split dollar life insurance asset 47 (459) Cash received from unconsolidated international affiliates 677 5,757 Proceeds from disposition of property and equipment 4,317 448 Net cash used in investing activities (271,761) (25,235) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on long-term borrowings (213,975) (283,579) Proceeds from issuance of long-term debt 417,800 254,800 Payment of debt issuance costs (1,629) (1,396) Proceeds from employee stock purchases 3,805 3,046 Treasury Stock purchases (368) - Excess tax benefit from share-based payment arrangements 758 - Dividend on Redeemable Convertible Preferred Stock - (411) Net cash provided by (used in) financing activities 206,391 (27,540) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 1,491 662 INCREASE IN CASH AND CASH EQUIVALENTS 4,218 3,333 CASH AND CASH EQUIVALENTS, beginning of period 14,451 11,118 CASH AND CASH EQUIVALENTS, end of period $ 18,669 $ 14,451
GENESEE & WYOMING INC. AND SUBSIDIARIES Selected Consolidated Financial Information (dollars in thousands) (Unaudited)
Three Months Ended December 31, ---------------------------------------------------------- 2005 2004 --------------------------- --------------------------- % of % of Amount Revenue Amount Revenue ------------ ------------ ------------ ------------ Revenues: Freight $ 74,232 71.8% $ 58,439 73.0% Non-freight 29,084 28.2% 21,637 27.0% Total revenues $ 103,316 100.0% $ 80,076 100.0% Operating Expense Comparison: Natural Classification Labor and benefits $ 33,108 32.0% $ 27,183 33.9% Equipment rents 9,078 8.8% 7,376 9.2% Purchased services 7,472 7.2% 5,086 6.4% Depreciation and amortization 6,858 6.6% 4,948 6.2% Diesel fuel 10,892 10.5% 7,919 9.9% Casualties and insurance 4,022 3.9% 3,752 4.7% Materials 5,775 5.6% 4,191 5.2% Net loss on sale and impairment of assets 159 0.2% - 0.0% Other expenses 9,379 9.2% 7,923 9.9% Total operating expenses $ 86,743 84.0% $ 68,378 85.4% Functional Classification Transportation $ 36,237 35.1% $ 28,448 35.5% Maintenance of ways and structures 9,223 8.9% 7,344 9.2% Maintenance of equipment 15,550 15.1% 12,813 16.0% General and administrative 18,716 18.1% 14,825 18.5% Net loss on sale and impairment of assets 159 0.2% - 0.0% Depreciation and amortization 6,858 6.6% 4,948 6.2% Total operating expenses $ 86,743 84.0% $ 68,378 85.4%
GENESEE & WYOMING INC. AND SUBSIDIARIES Selected Consolidated Financial Information (dollars in thousands) (Unaudited)
Year Ended December 31, ------------------------------------------------------------ 2005 2004 ---------------------------- ---------------------------- % of % of Amount Revenue Amount Revenue ------------ ------------ ------------ ------------ Revenues: Freight $ 282,891 73.4% $ 226,265 74.5% Non-freight 102,498 26.6% 77,519 25.5% Total revenues $ 385,389 100.0% $ 303,784 100.0% Operating Expense Comparison: Natural Classification Labor and benefits $ 122,941 31.9% $ 105,079 34.6% Equipment rents 34,364 8.9% 27,692 9.1% Purchased services 26,250 6.8% 18,358 6.0% Depreciation and amortization 24,575 6.4% 19,243 6.3% Diesel fuel 38,414 10.0% 25,432 8.4% Casualties and insurance 17,704 4.6% 15,710 5.2% Materials 19,933 5.2% 15,336 5.0% Net gain on sale and impairment of assets (3,207) -0.8% (13) 0.0% Other expenses 33,484 8.6% 26,908 8.9% Total operating expenses $ 314,458 81.6% $ 253,745 83.5% Functional Classification Transportation $ 133,001 34.5% $ 102,424 33.7% Maintenance of ways and structures 34,360 8.9% 29,347 9.7% Maintenance of equipment 57,321 14.9% 47,602 15.7% General and administrative 68,408 17.7% 55,142 18.1% Net gain on sale and impairment of assets (3,207) -0.8% (13) 0.0% Depreciation and amortization 24,575 6.4% 19,243 6.3% Total operating expenses $ 314,458 81.6% $ 253,745 83.5%
GENESEE & WYOMING INC. AND SUBSIDIARIES North American 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, 2005 December 31, 2004 ------------------------------------------ ------------------------------------------ Average Average Revenue Revenue Freight Per Freight Per Commodity Group Revenues Carloads Carload Revenues Carloads Carload ------------------------------ ------------ ------------ ------------ ------------ ------------ ------------ Paper $ 17,117 36,445 $ 470 $ 10,776 24,169 $ 446 Coal, Coke & Ores 13,382 50,699 264 10,686 46,987 227 Lumber & Forest Products 9,317 25,582 364 6,502 18,732 347 Minerals & Stone 7,660 20,023 383 5,599 14,347 390 Metals 7,585 20,255 374 6,386 19,472 328 Petroleum Products 5,847 7,672 762 6,214 8,100 767 Chemicals-Plastics 5,683 10,566 538 4,274 8,487 504 Farm & Food Products 4,316 13,094 330 4,816 13,462 358 Autos & Auto Parts 1,337 2,734 489 1,416 3,207 442 Intermodal 590 1,228 480 640 1,601 400 Other 1,398 4,207 332 1,130 4,323 261 Totals $ 74,232 192,505 386 $ 58,439 162,887 359
GENESEE & WYOMING INC. AND SUBSIDIARIES North American 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, 2005 December 31, 2004 ------------------------------------------ ------------------------------------------ Average Average Revenue Revenue Freight Per Freight Per Commodity Group Revenues Carloads Carload Revenues Carloads Carload ------------------------------ ------------ ------------ ------------ ------------ ------------ ------------ Paper $ 59,401 129,807 $ 458 40,486 94,340 $ 429 Coal, Coke & Ores 51,803 197,891 262 45,126 191,038 236 Lumber & Forest Products 35,336 98,087 360 25,295 76,055 333 Minerals & Stone 29,050 73,307 396 22,294 59,197 377 Metals 28,432 78,221 363 23,464 73,412 320 Petroleum Products 25,717 33,041 778 24,465 32,401 755 Chemicals-Plastics 21,481 40,434 531 16,270 31,262 520 Farm & Food Products 17,842 52,501 340 16,203 40,520 400 Autos & Auto Parts 6,584 13,600 484 6,362 14,665 434 Intermodal 2,151 4,805 448 2,409 6,425 375 Other 5,094 16,328 312 3,891 14,034 277 Totals $ 282,891 738,022 383 $ 226,265 633,349 357
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, ---------------------------- ---------------------------- 2005 2004 2005 2004 ------------ ------------ ------------ ------------ REVENUES $ 86,807 $ 85,882 $ 344,546 $ 333,647 OPERATING EXPENSES 72,232 68,773 288,488 265,702 INCOME FROM OPERATIONS 14,575 17,109 56,058 67,945 INTEREST EXPENSE (7,308) (7,370) (29,430) (28,438) INTEREST INCOME 17 265 600 1,227 INCOME BEFORE TAX 7,284 10,004 27,228 40,734 PROVISION FOR INCOME TAX 2,261 3,028 8,292 12,264 NET INCOME $ 5,023 $ 6,976 $ 18,936 $ 28,470
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, 2005 2004 ------------ ------------ ASSETS CURRENT ASSETS: Cash and cash equivalents $ 12,515 $ 21,217 Accounts receivable, net 54,257 49,085 Materials and supplies 11,226 11,580 Prepaid expenses and other 2,323 3,055 Total current assets 80,321 84,937 PROPERTY AND EQUIPMENT, net 551,849 541,470 DEFERRED INCOME TAX ASSETS, net 67,834 77,325 OTHER ASSETS, net 7,799 8,522 Total assets $ 707,803 $ 712,254 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term debt $ - $ - Accounts payable 25,473 19,832 Accrued expenses 32,890 31,989 Current income tax liabilities 10 364 Total current liabilities 58,373 52,185 LONG-TERM DEBT 359,415 383,425 DEFERRED INCOME TAX LIABILITIES, net 24,599 21,207 OTHER LONG-TERM LIABILITIES 11,121 2,177 FAIR VALUE OF INTEREST RATE SWAPS 4,735 9,788 Total non-current liabilities 399,870 416,597 REDEEMABLE PREFERRED STOCK OF STOCKHOLDERS 15,838 16,897 TOTAL STOCKHOLDERS' EQUITY 233,722 226,575 Total liabilities and stockholders' equity $ 707,803 $ 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)
Year Ended December 31, ---------------------------- 2005 2004 ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 18,936 $ 28,470 Adjustments to reconcile net income to net cash provided by operating activities- Depreciation and amortization 32,127 27,346 Deferred income taxes 9,726 11,847 Net gain on sale and impairment of assets (229) (336) Changes in assets and liabilities 9,675 4,829 Net cash provided by operating activities 70,235 72,156 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment (80,038) (69,519) Proceeds from disposition of property and equipment 2,147 2,570 Net cash used in investing activities (77,891) (66,949) CASH FLOWS FROM FINANCING ACTIVITIES: Payments on subordinated notes - (10,710) Payments on borrowings (7,424) - Proceeds from borrowings 7,665 - Net cash used in financing activities 241 (10,710) EFFECT OF EXCHANGE RATE DIFFERENCES ON CASH AND CASH EQUIVALENTS (1,287) 102 DECREASE IN CASH AND CASH EQUIVALENTS (8,702) (5,401) CASH AND CASH EQUIVALENTS, beginning of period 21,217 26,618 CASH AND CASH EQUIVALENTS, end of period $ 12,515 $ 21,217
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, ------------------------------------------------------------ 2005 2004 ---------------------------- ---------------------------- % of % of Amount Revenue Amount Revenue ------------ ------------ ------------ ------------ Revenues: Freight $ 72,372 83.4% $ 70,573 82.2% Non-freight 14,435 16.6% 15,309 17.8% Total revenues $ 86,807 100.0% $ 85,882 100.0% Operating Expenses: Natural Classification Labor and benefits $ 17,546 20.2% $ 15,835 18.4% Equipment rents 1,036 1.2% 321 0.4% Purchased services 13,785 15.9% 18,610 21.7% Depreciation and amortization 8,215 9.5% 7,501 8.7% Diesel fuel used in operations 9,366 10.8% 7,776 9.1% Diesel fuel for sales to third parties 4,738 5.5% 6,395 7.4% Casualties and insurance 1,817 2.1% 3,152 3.7% Materials 4,921 5.6% 3,115 3.6% Net loss (gain) on sale and impairment of assets 68 0.1% (712) -0.8% Other expenses 10,740 12.3% 6,780 7.9% Total operating expenses $ 72,232 83.2% $ 68,773 80.1% Functional Classification Transportation $ 33,566 38.7% $ 33,410 38.9% Maintenance of ways and structures 9,799 11.3% 7,070 8.2% Maintenance of equipment 7,198 8.3% 7,875 9.2% General and administrative 13,386 15.3% 13,629 15.9% Net loss (gain) on sale and impairment of assets 68 0.1% (712) -0.8% Depreciation and amortization 8,215 9.5% 7,501 8.7% Total operating expenses $ 72,232 83.2% $ 68,773 80.1%
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, ------------------------------------------------------------ 2005 2004 ---------------------------- ---------------------------- % of % of Amount Revenue Amount Revenue ------------ ------------ ------------ ------------ Revenues: Freight $ 281,455 81.7% $ 278,939 83.6% Non-freight 63,091 18.3% 54,708 16.4% Total revenues $ 344,546 100.0% $ 333,647 100.0% Operating Expenses: Natural Classification Labor and benefits $ 70,280 20.4% $ 59,566 17.8% Equipment rents 3,392 1.0% 2,519 0.7% Purchased services 65,067 18.9% 78,775 23.6% Depreciation and amortization 32,127 9.3% 27,346 8.2% Diesel fuel used in operations 33,974 9.9% 26,671 8.0% Diesel fuel for sales to third parties 22,139 6.4% 19,944 6.0% Casualties and insurance 10,949 3.2% 9,570 2.9% Materials 16,178 4.7% 13,726 4.1% Net gain on sale and impairment of assets (229) -0.1% (336) -0.1% Other expenses 34,611 10.0% 27,921 8.4% Total operating expenses $ 288,488 83.7% $ 265,702 79.6% Functional Classification Transportation $ 136,002 39.5% $ 127,595 38.2% Maintenance of ways and structures 41,230 12.0% 36,901 11.1% Maintenance of equipment 29,312 8.5% 30,539 9.1% General and administrative 50,046 14.5% 43,657 13.1% Net gain on sale and impairment of assets (229) -0.1% (336) -0.1% Depreciation and amortization 32,127 9.3% 27,346 8.2% Total operating expenses $ 288,488 83.7% $ 265,702 79.6%
Australian Railroad Group Pty. Ltd. is 50%-owned by Genesee & Wyoming Inc. AUSTRALIAN RAILROAD GROUP PTY. LTD. Australian 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, 2005 December 31, 2004 ------------------------------------------ ------------------------------------------ Average Average Revenue Revenue Freight Per Freight Per Commodity Group Revenues Carloads Carload Revenues Carloads Carload ------------------------------ ------------ ------------ ------------ ------------ ------------ ------------ Grain $ 20,032 48,241 $ 415 $ 23,665 60,303 $ 392 Other Ores and Minerals 15,846 26,708 593 14,589 27,385 533 Iron Ore 15,280 55,898 273 12,614 52,198 242 Alumina 5,577 40,417 138 5,077 39,247 129 Bauxite 3,618 35,017 103 3,488 33,441 104 Hook and Pull (Haulage) 2,470 3,746 659 434 1,075 404 Gypsum 840 10,255 82 1,003 12,807 78 Other 8,709 19,681 443 9,703 17,142 566 Total $ 72,372 239,963 302 $ 70,573 243,598 290
Australian Railroad Group Pty. Ltd. is 50%-owned by Genesee & Wyoming Inc. AUSTRALIAN RAILROAD GROUP PTY. LTD. Australian 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, 2005 December 31, 2004 ------------------------------------------ ------------------------------------------ Average Average Revenue Revenue Freight Per Freight Per Commodity Group Revenues Carloads Carload Revenues Carloads Carload ------------------------------ ------------ ------------ ------------ ------------ ------------ ------------ Grain $ 80,974 196,938 $ 411 $ 101,987 265,712 $ 384 Other Ores and Minerals 61,072 104,067 587 58,386 109,418 534 Iron Ore 57,806 222,357 260 45,536 201,613 226 Alumina 21,913 159,689 137 19,666 157,168 125 Bauxite 14,749 140,034 105 12,733 125,793 101 Hook and Pull (Haulage) 6,474 9,753 664 1,713 7,332 234 Gypsum 3,961 46,679 85 3,662 50,394 73 Other 34,506 76,194 453 35,256 67,891 519 Total $ 281,455 955,711 294 $ 278,939 985,321 283
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, ---------------------------- 2005 2004 ------------ ------------ Net cash provided by operating activities $ 68,097 $ 55,446 Net cash used in investing activities (271,761) (25,235) Cash used for acquisitions 244,704 2,909 Free cash flow $ 41,040 $ 33,120 SOURCE Genesee & Wyoming Inc. -0- 02/14/2006 CONTACT: Christopher Capot, Director - Corporate Communications, Genesee & Wyoming Inc., +1-203-629-3722, cell, +1-203-379-8019/ /FCMN Contact: JSattora@gwrr.com / /INVESTOR CONTACT: T. J. Gallagher, CFO, Genesee & Wyoming Inc., +1-203-629-3722/ /Web site: http://www.gwrr.com / (GWR)