-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MrwlDOxaP11HbU3sXMIww8C1eSEcZe+AzJNj7Jq4ZrR5GvmtCMzzmhYJt9mTzohn DNmoRye59qNu9qembWtEWg== 0001275287-06-002396.txt : 20060502 0001275287-06-002396.hdr.sgml : 20060502 20060502083155 ACCESSION NUMBER: 0001275287-06-002396 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060502 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060502 DATE AS OF CHANGE: 20060502 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENESEE & WYOMING INC CENTRAL INDEX KEY: 0001012620 STANDARD INDUSTRIAL CLASSIFICATION: RAILROADS, LINE-HAUL OPERATING [4011] IRS NUMBER: 060984624 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31456 FILM NUMBER: 06797253 BUSINESS ADDRESS: STREET 1: 66 FIELD POINT ROAD CITY: GREENWICH STATE: CT ZIP: 06830 BUSINESS PHONE: 2036293722 MAIL ADDRESS: STREET 1: 66 FIELD POINT ROAD CITY: GREENWICH STATE: CT ZIP: 06830 8-K 1 gw5638.txt FORM 8-K ================================================================================ 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) May 2, 2006 GENESEE & WYOMING INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) DELAWARE 001-31456 06-0984624 ---------------------------- ------------ ------------------- (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 66 FIELD POINT ROAD, GREENWICH, CONNECTICUT 06830 ------------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (203) 629-3722 -------------------------------------------------------------- (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 (see General Instruction A.2. below): [ ] 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 May 2, 2006, Genesee & Wyoming Inc. issued a press release reporting financial results for the first quarter of 2006. 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 herein by reference. ITEM 9.01 Financial Statements and Exhibits (d) Exhibit. 99.1 Press release, dated May 2, 2006. 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. May 2, 2006 By: /s/ Timothy J. Gallagher ------------------------- Timothy J. Gallagher Chief Financial Officer EX-99.1 2 gw5638ex991.txt EXHIBIT 99.1 Exhibit 99.1 GENESEE & WYOMING REPORTS 28.6 PERCENT INCREASE IN NET INCOME FOR THE FIRST QUARTER OF 2006; NORTH AMERICAN NET INCOME INCREASES 47.8 PERCENT GREENWICH, Conn., May 2, 2006 /PRNewswire-FirstCall/ -- Genesee & Wyoming Inc. (GWI) (NYSE: GWR) reported that net income in the first quarter of 2006 increased 28.6 percent to $14.0 million, compared to net income of $10.9 million in the first quarter of 2005. Net income from GWI's North American operations increased 47.8 percent to $12.6 million in the first quarter of 2006 compared with $8.5 million in the first quarter of 2005. GWI's diluted earnings per share in the first quarter of 2006 increased 26.9 percent to $0.33 with 42.4 million shares outstanding, compared to diluted earnings per share of $0.26 with 41.5 million shares outstanding in the first quarter of 2005. On February 13, 2006, GWI and its 50-percent joint venture partner, Wesfarmers Limited, entered into a definitive agreement to sell the Western Australia operations and certain other assets of the Australian Railroad Group (ARG) to Queensland Rail and Babcock & Brown Limited for approximately $956.0 million, plus certain closing adjustments (ARG Sale). The ARG Sale is subject to closing conditions, including certain Australian government approvals, and is targeted to close in the second quarter of 2006. Simultaneous with the ARG Sale, GWI entered into an agreement to purchase Wesfarmers' 50-percent ownership of the remaining ARG operations, which are principally located in South Australia and the Northern Territory for approximately $15.0 million. In the first quarter of 2006, ARG contributed US$1.4 million to GWI's net income, or 10 percent of the total net income. GWI's results for the first quarter of 2006 included: (i) $1.0 million of after-tax expense (or $0.02 per share) from transaction costs associated with the ARG Sale (of which approximately 60 percent was incurred by GWI and reflected in North American net income and 40 percent was incurred by ARG and reflected in equity income), (ii) $0.8 million of after-tax expense (or $0.02 per share) from track washouts due to Cyclone Clare in Western Australia and (iii) $0.7 million of after-tax expense (or $0.02 per share) for the cost of stock options due to the adoption of FAS123R. North American Results In the first quarter of 2006, GWI's North American revenue increased 34.4 percent to $113.0 million, compared to $84.1 million in the first quarter of 2005. Of this $28.9 million increase in revenue, $8.9 million was same- railroad revenue growth in the U.S. and Canada, $20.0 million was from the acquisition of rail lines from Rail Management Corporation and $0.9 million was from a rail property acquired from CSX. These gains were partially offset by a $0.9 million decrease in revenue in Mexico, where a portion of track has remained inoperable since Hurricane Stan in October 2005. The 11.8 percent growth in same-railroad revenue in the U.S. and Canada was primarily due to freight revenue increases of $4.1 million in coal, $1.5 million in metals and $0.9 million in pulp and paper. GWI's North American operating income in the first quarter of 2006 increased 54.7 percent to $22.1 million, compared with $14.3 million in the first quarter of 2005. The North American operating ratio improved by 2.5 percent to 80.5 percent in the first quarter of 2006, compared to an operating ratio of 83.0 percent in the first quarter of 2005. GWI's Mexico operations had an operating loss of $0.3 million in the first quarter of 2006 compared to operating income of $0.6 million in the first quarter of 2005. Excluding Mexico, GWI's North American operating ratio improved from 82.0 percent in the first quarter of 2005 to 78.8 percent in the first quarter of 2006. Australian Results (Equity Accounting) Revenue at GWI's 50 percent-owned subsidiary, ARG, decreased 0.8 percent to US$83.7 million in the first quarter of 2006, compared to US$84.4 million in the first quarter of 2005. This US$0.7 million decrease in revenue was primarily due to a 4.8 percent weakening of the Australian dollar. In Australian dollars, ARG's revenue increased 4.4 percent in the first quarter of 2006 compared to the first quarter of 2005 due to higher average revenue per carload, particularly from grain and iron ore, and the addition of the intermodal business between Adelaide and Melbourne. This increase was partially offset by a temporary weakness in iron ore traffic due to two mine shutdowns in Western Australia in the first quarter of 2006. ARG's operating income in the first quarter of 2006 was US$10.5 million, compared to operating income of US$13.8 million in the first quarter of 2005. ARG's operating ratio was 87.4 percent in the first quarter of 2006, compared to 83.6 percent in the first quarter of 2005. Operating income from ARG in the first quarter included US$1.1 million of transaction expenses related to the ARG Sale and US$2.2 million of expenses related to Cyclone Clare, which caused track washouts in Western Australia in January. ARG's operating results in the first quarter of 2005 were adversely impacted by two derailments by a third party operator on ARG's track in Western Australia, which cost approximately US$1.8 million. Equity income from ARG in the first quarter of 2006 was US$1.4 million, compared to US$2.3 million in the first quarter of 2005. Free Cash Flow For the quarter ended March 31, 2006, GWI's North American operations generated Free Cash Flow of $21.2 million (defined as Cash from Operations of $27.5 million less Cash used in Investing of $6.3 million, excluding Cash used for Acquisitions of $0) compared with $15.9 million (defined as Cash from Operations of $19.7 million less Cash used in Investing of $3.8 million, excluding Cash used for Acquisitions of $0) in the same period of 2005. See the attached schedule for a description and discussion of Free Cash Flow. Comments from the Chief Executive Mortimer B. Fuller III, Chairman and Chief Executive Officer of GWI, commented, "Our U.S. and Canada operations performed well ahead of our expectations for the first quarter, continuing to benefit from favorable industry conditions and good acquisition results. In contrast, our Mexico operations continue to struggle as we reconfigure traffic flows and maintain our dialogue with the Mexican authorities regarding rebuilding the washed out segment of the line. Overall, we are pleased with our North American results as earnings increased 47.8 percent in the first quarter." Mr. Fuller continued, "In Australia, ARG's operating performance was negatively impacted by expense related to the impact of Cyclone Clare, which struck Western Australia earlier this year. Additionally, ARG's first quarter results include transaction expenses related to the ARG Sale. We continue to expect that the sale of the Western Australia business and related assets, as well as our purchase of the remaining portion of the South Australia business, will close in the second quarter of 2006." As previously announced, GWI's conference call to discuss financial results for the first quarter will be held today at 11:00 a.m. (Eastern Time). The dial-in number for the teleconference is 800-230-1059 (if outside U.S., call 612-332-1213) or the call may be accessed live over the Internet (listen only) under the "Investors" tab of GWI's website (http://www.gwrr.com), by selecting "First Quarter Earnings Audio Webcast." An audio replay of the conference call will be accessible via the Investors tab of GWI's website starting at 2:30 p.m. 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 March 31, ----------------------- 2006 2005 ---------- ---------- REVENUES $ 112,982 $ 84,081 OPERATING EXPENSES 90,922 69,821 INCOME FROM OPERATIONS 22,060 14,260 INTEREST EXPENSE (5,008) (2,119) OTHER INCOME, NET 545 97 INCOME BEFORE INCOME TAXES AND EQUITY EARNINGS 17,597 12,238 PROVISION FOR INCOME TAXES 4,998 3,716 INCOME BEFORE EQUITY EARNINGS 12,599 8,522 EQUITY IN NET INCOME OF INTERNATIONAL AFFILIATES: AUSTRALIAN RAILROAD GROUP 1,353 2,291 SOUTH AMERICA 62 87 NET INCOME 14,014 10,900 BASIC EARNINGS PER SHARE: NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 0.38 $ 0.30 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 37,326 36,627 DILUTED EARNINGS PER SHARE: NET INCOME $ 0.33 $ 0.26 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 42,411 41,489 GENESEE & WYOMING INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) March 31, December 31, 2006 2005 ---------- ------------ ASSETS CURRENT ASSETS: Cash and cash equivalents $ 20,306 $ 18,669 Accounts receivable, net 89,733 91,134 Materials and supplies 6,706 6,765 Prepaid expenses and other 15,176 8,298 Deferred income tax assets, net 1,995 4,230 Total current assets 133,916 129,096 PROPERTY AND EQUIPMENT, net 535,256 535,994 INVESTMENT IN UNCONSOLIDATED AFFILIATES 135,473 136,443 GOODWILL 31,208 31,233 INTANGIBLE ASSETS, net 134,313 135,444 OTHER ASSETS, net 12,649 12,388 Total assets $ 982,815 $ 980,598 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term debt $ 4,699 $ 4,726 Accounts payable 95,120 87,496 Accrued expenses 24,398 28,270 Total current liabilities 124,217 120,492 LONG-TERM DEBT, less current portion 309,854 333,625 DEFERRED INCOME TAX LIABILITIES, net 62,017 59,891 DEFERRED ITEMS - grants from governmental agencies 47,710 48,242 DEFERRED GAIN - sale/leaseback 3,140 3,217 OTHER LONG-TERM LIABILITIES 14,536 13,982 MINORITY INTEREST 3,320 3,329 TOTAL STOCKHOLDERS' EQUITY 418,021 397,820 Total liabilities and stockholders' equity $ 982,815 $ 980,598 GENESEE & WYOMING INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
Three Months Ended ------------------------------- March 31, 2006 March 31, 2005 -------------- -------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 14,014 $ 10,900 Adjustments to reconcile net income to net cash provided by operating activities- Depreciation and amortization 7,311 4,990 Amortization of restricted stock 143 94 Compensation cost related to stock options 877 - Excess tax benefit from share-based payment arrangements (2,341) - Deferred income taxes 4,547 1,616 Tax benefit realized upon exercise of stock options - 111 Net gain on sale and impairment of assets (94) (67) Equity earnings of unconsolidated international affiliates (1,415) (2,378) Minority interest expense (9) 8 Changes in assets and liabilities, net of effect of acquisitions - Accounts receivable 1,216 (3,452) Materials and supplies 22 458 Prepaid expenses and other (520) (184) Accounts payable and accrued expenses 4,004 6,396 Other assets and liabilities, net (299) 1,232 Net cash provided by operating activities 27,456 19,724 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment, net of proceeds from government grants (6,592) (4,047) Proceeds from disposition of property and equipment, including sale/leasebacks 306 85 Valuation adjustment of split dollar life insurance 12 114 Net cash used in investing activities (6,274) (3,848) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on long-term borrowings, including capital leases (77,208) (54,235) Proceeds from issuance of long-term debt 53,500 48,000 Proceeds from employee stock purchases 2,365 437 Purchase of treasury stock - (270) Excess tax benefit from share-based payment arrangements 2,341 - Net cash used in financing activities (19,002) (6,068) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (543) (51) INCREASE IN CASH AND CASH EQUIVALENTS 1,637 9,757 CASH AND CASH EQUIVALENTS, beginning of period 18,669 14,451 CASH AND CASH EQUIVALENTS, end of period $ 20,306 $ 24,208
GENESEE & WYOMING INC. AND SUBSIDIARIES Selected Consolidated Financial Information (dollars in thousands) (Unaudited)
Three Months Ended March 31, -------------------------------------------------- 2006 2005 ----------------------- ----------------------- % of % of Amount Revenue Amount Revenue ---------- ---------- ---------- ---------- Revenues: Freight $ 85,514 75.7% $ 63,133 75.1% Non-freight 27,468 24.3% 20,948 24.9% Total revenues $ 112,982 100.0% $ 84,081 100.0% Operating Expense Comparison: Natural Classification Labor and benefits $ 37,191 32.9% $ 28,884 34.4% Equipment rents 9,906 8.8% 7,890 9.4% Purchased services 7,351 6.5% 5,130 6.1% Depreciation and amortization 7,311 6.5% 4,990 5.9% Diesel fuel 11,276 10.0% 7,937 9.4% Casualties and insurance 2,783 2.5% 3,632 4.3% Materials 5,795 5.1% 4,208 5.0% Net gain on sale and impairment of assets (94) (0.1)% (67) (0.1)% Other expenses 9,403 8.3% 7,217 8.6% Total operating expenses $ 90,922 80.5% $ 69,821 83.0% Functional Classification Transportation $ 38,400 34.0% $ 28,886 34.4% Maintenance of ways and structures 9,926 8.8% 7,892 9.4% Maintenance of equipment 16,432 14.5% 13,105 15.6% General and administrative 18,947 16.8% 15,015 17.8% Net gain on sale and impairment of assets (94) (0.1)% (67) (0.1)% Depreciation and amortization 7,311 6.5% 4,990 5.9% Total operating expenses $ 90,922 80.5% $ 69,821 83.0%
GENESEE & WYOMING INC. AND SUBSIDIARIES North America Railroad Freight Revenues, Carloads and Average Revenue Per Carload Comparison by Commodity Group (dollars in thousands, except average revenue per carload)
Three Months Ended Three Months Ended March 31, 2006 March 31, 2005 ---------------------------------- ---------------------------------- Average Average Revenue Revenue ---------------------------------- ---------------------------------- Freight Per Freight Per Commodity Group Revenues Carloads Carload Revenues Carloads Carload ------------------------------ ---------- ---------- ---------- ---------- ---------- ---------- Paper $ 17,399 35,362 $ 492 $ 11,700 25,409 $ 460 Coal, Coke & Ores 17,024 51,695 329 12,269 45,858 268 Lumber & Forest Products 9,529 25,432 375 7,552 20,951 360 Metals 9,401 22,392 420 6,354 18,165 350 Minerals & Stone 8,199 20,039 409 5,601 14,065 398 Petroleum Products 6,451 8,562 753 6,871 8,783 782 Chemicals-Plastics 6,239 10,999 567 4,673 9,305 502 Farm & Food Products 6,136 16,210 379 4,759 13,372 356 Autos & Auto Parts 1,666 3,434 485 1,830 3,954 463 Intermodal 451 1,035 436 501 1,143 438 Other 3,019 13,614 222 1,023 3,781 271 Totals $ 85,514 208,774 410 $ 63,133 164,786 383
AUSTRALIAN RAILROAD GROUP PTY LTD CONSOLIDATED STATEMENTS OF INCOME (U.S. dollars in thousands) (Unaudited - U.S. GAAP) Three Months Ended ------------------------------- March 31, 2006 March 31, 2005 -------------- -------------- REVENUES $ 83,719 $ 84,379 OPERATING EXPENSES 73,179 70,577 INCOME FROM OPERATIONS 10,540 13,802 INTEREST EXPENSE (6,750) (7,412) OTHER INCOME, NET 98 179 INCOME BEFORE TAX 3,888 6,569 PROVISION FOR INCOME TAX 1,184 1,983 NET INCOME $ 2,704 $ 4,586 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) March 31, 2006 December 31, 2005 -------------- ----------------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 17,654 $ 12,515 Accounts receivable, net 41,382 54,257 Materials and supplies 11,956 11,226 Prepaid expenses and other 747 2,323 Total current assets 71,739 80,321 PROPERTY AND EQUIPMENT, net 548,002 551,849 DEFERRED INCOME TAX ASSETS, net 64,794 67,834 OTHER ASSETS, net 7,661 7,799 Total assets $ 692,196 $ 707,803 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable 18,419 25,473 Accrued expenses 28,542 32,890 Current income tax liabilities 83 10 Total current liabilities 47,044 58,373 LONG-TERM DEBT 358,350 359,415 DEFERRED INCOME TAX LIABILITIES, net 23,892 24,599 OTHER LONG-TERM LIABILITIES 12,076 11,121 FAIR VALUE OF INTEREST RATE SWAPS 3,744 4,735 Total non-current liabilities 398,062 399,870 REDEEMABLE PREFERRED STOCK OF STOCKHOLDERS 15,476 15,838 TOTAL STOCKHOLDERS' EQUITY 231,614 233,722 Total liabilities and stockholders' equity $ 692,196 $ 707,803 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)
Three Months Ended ------------------------------- March 31, 2006 March 31, 2005 -------------- -------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 2,704 $ 4,586 Adjustments to reconcile net income to net cash provided by operating activities- Depreciation and amortization 8,468 7,602 Deferred income taxes 1,381 3,392 Net gain on sale and impairment of assets (22) (327) Changes in assets and liabilities 3,166 (9,629) Net cash provided by operating activities 15,697 5,624 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment (17,975) (14,664) Proceeds from disposition of property and equipment 524 661 Net cash used in investing activities (17,451) (14,003) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from borrowings 7,272 - Net cash provided by financing activities 7,272 - EFFECT OF EXCHANGE RATE DIFFERENCES ON CASH AND CASH EQUIVALENTS (379) (285) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 5,139 (8,664) CASH AND CASH EQUIVALENTS, beginning of period 12,515 21,217 CASH AND CASH EQUIVALENTS, end of period $ 17,654 $ 12,553
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 March 31, -------------------------------------------------- 2006 2005 ----------------------- ----------------------- % of % of Amount Revenue Amount Revenue ---------- ---------- ---------- ---------- Revenues: Freight $ 69,618 83.2% $ 69,339 82.2% Non-freight 14,101 16.8% 15,040 17.8% Total railroad revenues $ 83,719 100.0% $ 84,379 100.0% Operating Expenses: Natural Classification Labor and benefits $ 19,295 23.0% $ 17,104 20.3% Equipment rents 916 1.1% 883 1.0% Purchased services 13,428 16.0% 17,370 20.6% Depreciation and amortization 8,468 10.1% 7,602 9.0% Diesel fuel used in operations 8,983 10.7% 7,219 8.6% Diesel fuel for sales to third parties 3,905 4.7% 5,710 6.8% Casualties and insurance 5,770 6.9% 4,629 5.5% Materials 4,368 5.2% 3,651 4.3% Net gain on sale and impairment of assets (22) 0.0% (327) (0.4)% Other expenses 8,068 9.7% 6,736 7.9% Total operating expenses $ 73,179 87.4% $ 70,577 83.6% Functional Classification Transportation $ 32,835 39.2% $ 32,569 38.6% Maintenance of ways and structures 8,995 10.7% 9,427 11.2% Maintenance of equipment 6,927 8.3% 8,006 9.5% General and administrative 15,976 19.1% 13,300 15.7% Net gain on sale and impairment of assets (22) 0.0% (327) (0.4)% Depreciation and amortization 8,468 10.1% 7,602 9.0% Total operating expenses $ 73,179 87.4% $ 70,577 83.6%
Australian Railroad Group Pty Ltd is 50%-owned by Genesee & Wyoming Inc. AUSTRALIAN RAILROAD GROUP PTY LTD Australian Railroad Freight Revenues, Carloads and Average Revenue Per Carload Comparison by Commodity Group (U.S. dollars in thousands) (Unaudited)
Three Months Ended Three Months Ended March 31, 2006 March 31, 2005 ---------------------------------- ---------------------------------- Average Average Revenue Revenue ---------------------------------- ---------------------------------- Freight Per Freight Per Commodity Group Revenues Carloads Carload Revenues Carloads Carload ------------------------------ ---------- ---------- ---------- ---------- ---------- ---------- Grain $ 21,641 53,455 $ 405 $ 22,115 54,620 $ 405 Other Ores and Minerals 13,890 25,844 537 15,576 26,680 584 Iron Ore 13,049 45,332 288 12,633 52,989 238 Alumina 5,626 40,128 140 5,560 40,061 139 Bauxite 3,617 35,302 102 3,662 33,970 108 Hook and Pull (Haulage) 2,051 3,218 637 338 685 493 Gypsum 1,360 13,637 100 988 11,156 89 Other 8,384 19,808 423 8,467 17,808 475 Total $ 69,618 236,724 294 $ 69,339 237,969 291
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 March 31, ----------------------- 2006 2005 ---------- ---------- Net cash provided by operating activities $ 27,456 $ 19,724 Net cash used in investing activities (6,274) (3,848) Cash used for acquisitions - - Free cash flow $ 21,182 $ 15,876 CONTACT: Christopher Capot, Director - Corporate Communications, +1-203-629-3722, cell: +1-203-379-8019, or Investors: T. J. Gallagher, CFO, +1-203-629-3722, both of Genesee & Wyoming Inc. SOURCE Genesee & Wyoming Inc. -0- 05/02/2006 /CONTACT: Christopher Capot, Director - Corporate Communications, +1-203-629-3722, cell: +1-203-379-8019, or Investors: T. J. Gallagher, CFO, +1-203-629-3722, both of Genesee & Wyoming Inc./ /Web site: http://www.gwrr.com / -----END PRIVACY-ENHANCED MESSAGE-----