-----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, NDUYZY6r0hgpVkeA+5SmjLIC3V/3SzlLyuOIez+yomSw/QHvLUmDtxg+ir3LzXVw ehuONl5CaXcS55gl/1BwPA== 0001275287-07-000685.txt : 20070213 0001275287-07-000685.hdr.sgml : 20070213 20070213064820 ACCESSION NUMBER: 0001275287-07-000685 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070213 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070213 DATE AS OF CHANGE: 20070213 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: 07605837 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 gw8928.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): February 13, 2007 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 Not Applicable ----------------------------------------------------------- Former name or former address, if changed since last report Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ================================================================================ ITEM 2.02. Results of Operations and Financial Condition On February 13, 2007, Genesee & Wyoming Inc. (GWI) issued a press release reporting financial results for the fourth 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 February 13, 2007, announcing results for the fourth quarter of 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. February 13, 2007 By: /s/ Timothy J. Gallagher ------------------------ Name: Timothy J. Gallagher Title: Chief Financial Officer EX-99.1 2 gw8928ex991.txt EXHIBIT 99.1 Exhibit 99.1 GENESEE & WYOMING REPORTS RESULTS FOR THE FOURTH QUARTER OF 2006; ANNOUNCES TWO MILLION SHARE REPURCHASE PROGRAM GREENWICH, Conn., Feb. 13, 2007 /PRNewswire-FirstCall/ -- Genesee & Wyoming Inc. (GWI) (NYSE: GWR) reported that net income in the fourth quarter of 2006 increased 32.5% to $14.3 million, compared with net income of $10.8 million in the fourth quarter of 2005. GWI's diluted earnings per share in the fourth quarter of 2006 increased 30.8% to $0.34 with 42.2 million shares outstanding, compared with diluted earnings per share of $0.26 with 42.1 million shares outstanding in the fourth quarter of 2005. GWI's results for the fourth quarter of 2006 included gains on the sale of assets totaling $3.2 million ($1.9 million after-tax, or $0.05 per share), non-cash expense related to the reassessment of accounting measurement dates for certain stock options granted in prior years of $1.2 million ($0.5 million after-tax, or $0.01 per share) (see "Review of Stock Option Practices" below) and $0.9 million ($0.6 million after-tax, or $0.01 per share) associated with an emergency bridge repair in Canada. GWI's results for the fourth quarter of 2006 also included a net tax benefit of $1.2 million ($0.03 per share), primarily associated with regulations issued in late 2006 clarifying the calculation of the short line tax credit. GWI also announced today that its Board of Directors has authorized the repurchase of up to two million shares of GWI common stock. The repurchases may occur from time to time in the open market or in privately negotiated transactions. The timing and amount of any repurchase of shares will be determined by GWI management based on its evaluation of market conditions and other factors. Operating Results In the fourth quarter of 2006, GWI's revenue increased 20.0% to $124.0 million, compared with $103.3 million in the fourth quarter of 2005. Of this $20.7 million increase in revenue, $20.1 million was due to acquisitions, primarily Genesee & Wyoming Australia Pty Ltd (GWA), and $1.4 million was same-railroad revenue growth in the U.S. and Canada. These gains were partially offset by a decrease of $0.9 million in revenue in Mexico. U.S. and Canada non-freight revenues increased $2.3 million primarily due to higher switching revenue from new industrial switching contracts and higher rates and volumes at GWI's port railroads. U.S. and Canada freight revenues decreased $0.9 million, as carloads decreased by 7.1%, partially offset by an increase in average revenue per car of 6.3%. The increase in average revenue per car was due to higher rates of 5.9% and higher fuel surcharges of 1.4%, partially offset by a 1.0% change in commodity mix. GWI's operating income in the fourth quarter of 2006 increased 8.4% to $18.0 million, compared with $16.6 million in the fourth quarter of 2005. The operating ratio was 85.5% in the fourth quarter of 2006, compared with an operating ratio of 84.0% in the fourth quarter of 2005. Operating income was impacted by a number of items in the fourth quarter of 2006, including (i) gains on the sale of assets ($3.2 million), (ii) non-cash expense related to the stock options adjustment ($1.2 million) and (iii) expenses associated with an emergency bridge repair in Canada ($0.9 million). GWI's Mexican business had an operating loss of $0.9 million in the fourth quarter of 2006, compared with an operating loss of $1.0 million in the fourth quarter of 2005. Annual Consolidated Results For the year ended December 31, 2006, GWI reported net income of $134.0 million, compared with $50.1 million for the year ended December 31, 2005. GWI's diluted earnings per share increased to $3.16 in 2006 (with 42.4 million shares outstanding), compared with $1.20 in 2005 (with 41.7 million shares outstanding). Excluding the net gain from the sale of GWI's 50-percent interest in the Western Australia operations and certain other assets of the Australian Railroad Group (ARG) (ARG Sale) of $196.9 million ($114.5 million after-tax, or $2.70 per share) and the non-cash impairments in Mexico and Bolivia, which totaled $39.0 million ($39.8 million after-tax, or $0.94 per share), GWI's adjusted net income was $59.3 million and its adjusted earnings per share- diluted was $1.40 per share.(1) Free Cash Flow(2) For the year ended December 31, 2006, GWI's operations generated net cash from operating activities of $83.3 million and free cash flow of $24.4 million. Items reducing free cash flow included (i) $7.1 million in capital expenditures to be funded by government grants and insurance for which GWI will be reimbursed in 2007, (ii) $5.5 million of expenses related to the ARG Sale, (iii) $4.0 million in locomotive lease buyouts on December 31, 2006 and (iv) $2.4 million in business development capital expenditures. Working capital decreased $75.3 million, including Australia income taxes payable of $86.4 million primarily associated with the ARG Sale, partially offset by $3.5 million as a result of the Mexico and Bolivia non-cash impairments. All other working capital items produced a net increase of $7.6 million. For the year ended December 31, 2005, GWI generated net cash from operating activities of $68.1 million and free cash flow of $41.0 million. Free cash flow for the year ending December 31, 2005, included an increase in working capital of $3.8 million and business development capital expenditures for 2005 totaled $1.4 million. Review of Stock Option Practices During the fourth quarter of 2006, GWI voluntarily initiated and completed a comprehensive internal review of its historical stock option practices for stock option grants made during the period from its initial public offering on June 24, 1996 through the third quarter of 2006. The review found no evidence of any intentional wrongdoing by GWI's Executive Officers, Board of Directors or other employees. The internal review identified certain administrative and procedural deficiencies that resulted in unintentional accounting errors. These errors principally related to situations where, as of the grant date approved by the Compensation Committee, an aggregate number of stock options to be granted were approved and the exercise price for the stock options was established, but the allocation of those stock options to certain individual employee recipients was not finalized until a later date. GWI therefore determined that later measurement dates for accounting purposes for those individual grants should have been used. As a result, GWI recorded non-cash stock-based compensation expense of $1.2 million ($0.5 million after-tax) in the fourth quarter of 2006, with $1.1 million related to grants to the general population of employees, none of whom were executive officers. Under the direction of the Audit Committee of the Board of Directors, the results of the internal review were evaluated by outside counsel, who concurred with the findings. Comments from the Chief Executive Officer Mortimer B. Fuller, Chairman and Chief Executive Officer of GWI, commented, "Our financial performance in the fourth quarter of 2006 was consistent with our expectations, apart from the emergency bridge repairs in Canada. Reduced shipments of paper and forest products due to economic softness and lower shipments of coal and salt due to warmer winter weather were more than offset by effective cost control. Despite a severe drought in South Australia affecting the 2006-07 grain harvest, our Australian business continues to perform in-line with our acquisition plan. Overall, we expect these trends to continue in 2007 and to maintain good growth in GWI's core earnings." "Meanwhile, GWI continues to invest in a number of growth initiatives which, while increasing our capital expenditures, will result in even stronger free cash flow in future years. In Mexico, we have initiated a dialogue with the Calderon administration to resolve the issues concerning our Mexican railroads. Because they only recently assumed office in December 2006, it is too early to determine the outcome of these discussions." "Our announcement of a share repurchase program reflects our strong long-term outlook for the value of GWI. Given our strong operating cash flow, its impact on our financial capacity to execute major transactions is not material. Using the strongest balance sheet in our history, we plan to continue an active acquisition program and are currently pursuing a number of international and domestic opportunities." Conference Call and Webcast Details As previously announced, GWI's conference call to discuss financial results for the fourth quarter will be held today at 11:00 a.m. (Eastern Time). The dial-in number for the teleconference is 800-230-1092; outside U.S., call 612-288-0337, 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 "Q4 2006 Genesee & Wyoming Earnings Conference Call." 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. Supplemental information is also available under the "Investors" tab of GWI's website by selecting "Supporting Materials" located under the "Q4 2006 Genesee & Wyoming Earnings Conference Call"link. 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. GWI railroads operate in 26 U.S. states and two Canadian provinces and serve 12 U.S. ports. GWI operates more than 5,900 miles of owned and leased track and approximately 3,700 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. Michael Williams, GWI Corporate Communications 1-203-629-3722 mwilliams@gwrr.com 1. Adjusted Net Income and Adjusted Earnings per Share - Diluted are non- GAAP measures and are not intended to replace Net Income or Earnings per Share - Diluted, their most directly comparable GAAP measures. The information required by Regulation G under the Securities Exchange Act of 1934, including reconciliation to Net Income and Earnings per Share - Diluted calculated using amounts determined in accordance with GAAP, are included in the tables attached to this press release. 2. Free cash flow is a non-GAAP measure and is not intended to replace net cash provided by operating activities, its most directly comparable GAAP measure. The information required by Regulation G under the Securities Exchange Act of 1934, including a reconciliation to net cash provided by operating activities, is included in the tables attached to this press release. GENESEE & WYOMING INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (unaudited)
Three Months Ended Year Ended December 31, December 31, --------------------------- --------------------------- 2006 2005 2006 2005 ------------ ------------ ------------ ------------ OPERATING REVENUES $ 123,970 $ 103,316 $ 478,846 $ 385,389 OPERATING EXPENSES 105,997 86,743 435,433 314,458 INCOME FROM OPERATIONS 17,973 16,573 43,413 70,931 GAIN ON SALE OF EQUITY INVESTMENT IN ARG - - 218,845 - INVESTMENT LOSS - BOLIVIA - - (5,878) - EQUITY INCOME (LOSS) OF UNCONSOLIDATED INTERNATIONAL AFFILIATES - 2,652 (10,752) 14,224 INTEREST INCOME 3,376 91 7,837 343 INTEREST EXPENSE (3,889) (5,025) (17,476) (14,900) OTHER INCOME (EXPENSE), NET 124 (13) 2,381 (561) INCOME BEFORE INCOME TAXES 17,584 14,278 238,370 70,037 PROVISION FOR INCOME TAXES 3,238 3,452 104,367 19,902 NET INCOME $ 14,346 $ 10,826 $ 134,003 $ 50,135 BASIC EARNINGS PER COMMON SHARE $ 0.38 $ 0.29 $ 3.56 $ 1.36 WEIGHTED AVERAGE SHARES - BASIC 37,618 37,139 37,609 36,907 DILUTED EARNINGS PER COMMON SHARE $ 0.34 $ 0.26 $ 3.16 $ 1.20 WEIGHTED AVERAGE SHARES - DILUTED 42,216 42,056 42,417 41,712
GENESEE & WYOMING INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (unaudited) December 31, December 31, 2006 2005 ------------ ------------ ASSETS CURRENT ASSETS: Cash and cash equivalents $ 240,206 $ 18,669 Accounts receivable, net 117,099 91,134 Materials and supplies 11,302 6,765 Prepaid expenses and other 14,695 8,298 Deferred income tax assets, net 7,617 4,230 Total current assets 390,919 129,096 PROPERTY AND EQUIPMENT, net 573,292 535,994 INVESTMENT IN UNCONSOLIDATED AFFILIATES 4,644 136,443 GOODWILL 37,788 31,233 INTANGIBLE ASSETS, net 120,669 135,444 DEFERRED INCOME TAX ASSETS, net 2,697 - OTHER ASSETS, net 11,055 12,388 Total assets $ 1,141,064 $ 980,598 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term debt $ 4,372 $ 4,726 Accounts payable 98,186 87,496 Accrued expenses 38,364 28,270 Income tax payable - Australia 91,925 - Deferred income tax liabilities, net 291 - Total current liabilities 233,138 120,492 LONG-TERM DEBT, less current portion 241,313 333,625 DEFERRED INCOME TAX LIABILITIES, net 72,876 59,891 DEFERRED ITEMS - grants from governmental agencies 56,588 48,242 OTHER LONG-TERM LIABILITIES 16,962 20,528 TOTAL STOCKHOLDERS' EQUITY 520,187 397,820 Total liabilities and stockholders' equity $ 1,141,064 $ 980,598 GENESEE & WYOMING INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (unaudited) Year Ended December 31, --------------------------- 2006 2005 ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 134,003 $ 50,135 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 29,846 24,575 Amortization of restricted stock and units 1,265 663 Compensation cost related to stock options 7,190 1,816 Excess tax benefits from share-based compensation (4,544) (758) Deferred income taxes 14,591 8,428 Tax benefit upon exercise of stock options - 363 Gain on insurance recovery (1,937) - Gain on sale of equity investment in ARG (218,845) - Net loss (gain) on sale and impairment of assets 33,102 (3,207) Investment loss - Bolivia 5,878 - Equity loss (income) of unconsolidated international affiliates, net of tax 7,500 (10,077) Changes in assets and liabilities which provided (used) cash, net of effect of acquisitions: Accounts receivable, net (7,603) (13,039) Materials and supplies (1,827) (245) Prepaid expenses and other (6,247) 149 Accounts payable and accrued expenses 10,046 9,184 Income tax payable - Australia 86,358 - Other assets and liabilities, net (5,438) 110 Net cash provided by operating activities 83,338 68,097 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment, net of government grants (62,997) (32,098) Proceeds from ARG Sale 306,746 - Cash paid for acquisitions, net (20,354) (244,704) Valuation adjustment of split dollar life insurance 39 47 Cash received from unconsolidated international affiliates 378 677 Proceeds from disposition of property and equipment 3,667 4,317 Net cash provided by (used in) investing activities 227,479 (271,761) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on long-term borrowings, including capital leases (185,189) (213,975) Proceeds from issuance of long-term debt 92,500 417,800 Debt issuance costs - (1,629) Net proceeds from employee stock purchases 6,857 3,805 Treasury stock purchases (11,334) (368) Excess tax benefits from share-based compensation 4,544 758 Net cash (used in) provided by financing activities (92,622) 206,391 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 3,342 1,491 INCREASE IN CASH AND CASH EQUIVALENTS 221,537 4,218 CASH AND CASH EQUIVALENTS, beginning of period 18,669 14,451 CASH AND CASH EQUIVALENTS, end of period $ 240,206 $ 18,669 GENESEE & WYOMING INC. AND SUBSIDIARIES SELECTED CONSOLIDATED FINANCIAL INFORMATION (dollars in thousands) (unaudited)
Three Months Ended December 31, ---------------------------------------------------------- 2006 2005 --------------------------- --------------------------- Amount % of Revenue Amount % of Revenue ------------ ------------ ------------ ------------ Revenues: Freight $ 80,455 64.9% $ 76,015 73.6% Non-freight 43,515 35.1% 27,301 26.4% Total revenues $ 123,970 100.0% $ 103,316 100.0% Operating Expense Comparison: Natural Classification Labor and benefits $ 41,869 33.8% $ 33,108 32.0% Equipment rents 11,228 9.1% 9,078 8.8% Purchased services 11,300 9.1% 7,472 7.2% Depreciation and amortization 7,708 6.2% 6,858 6.6% Diesel fuel used in operations 10,962 8.8% 10,892 10.5% Diesel fuel sold to third parties 5,404 4.4% - 0.0% Casualties and insurance 4,465 3.6% 4,022 3.9% Materials 6,038 4.9% 5,775 5.6% Net (gain) loss on sale and impairment of assets (3,162) -2.6% 159 0.2% Other expenses 10,185 8.2% 9,379 9.2% Total operating expenses $ 105,997 85.5% $ 86,743 84.0% Functional Classification Transportation $ 42,828 34.5% $ 36,237 35.1% Maintenance of ways and structures 11,419 9.2% 9,223 8.9% Maintenance of equipment 20,247 16.3% 15,550 15.1% Diesel fuel sold to third parties 5,404 4.4% - 0.0% General and administrative 21,553 17.5% 18,716 18.0% Net (gain) loss on sale and impairment of assets (3,162) -2.6% 159 0.2% Depreciation and amortization 7,708 6.2% 6,858 6.6% Total operating expenses $ 105,997 85.5% $ 86,743 84.0%
GENESEE & WYOMING INC. AND SUBSIDIARIES SELECTED CONSOLIDATED FINANCIAL INFORMATION (dollars in thousands) (unaudited)
Year Ended December 31, ------------------------------------------------------------ 2006 2005 ---------------------------- ---------------------------- Amount % of Revenue Amount % of Revenue ------------ ------------ ------------ ------------ Revenues: Freight $ 335,847 70.1% $ 285,999 74.2% Non-freight 142,999 29.9% 99,390 25.8% Total revenues $ 478,846 100.0% $ 385,389 100.0% Operating Expense Comparison: Natural Classification Labor and benefits $ 158,506 33.1% $ 122,941 31.9% Equipment rents 40,126 8.4% 34,364 8.9% Purchased services 37,873 7.9% 26,250 6.8% Depreciation and amortization 29,846 6.2% 24,575 6.4% Diesel fuel used in operations 45,171 9.4% 38,414 10.0% Diesel fuel sold to third parties 12,493 2.6% - 0.0% Casualties and insurance 17,472 3.6% 17,704 4.6% Materials 23,960 5.0% 19,933 5.2% Net loss (gain) on sale and impairment of assets 33,102 6.9% (3,207) -0.8% Gain on insurance recovery (1,937) -0.4% - 0.0% Other expenses 38,821 8.1% 33,484 8.6% Total operating expenses $ 435,433 90.8% $ 314,458 81.6% Functional Classification Transportation $ 162,301 33.9% $ 133,001 34.5% Maintenance of ways and structures 42,789 8.9% 34,360 8.9% Maintenance of equipment 70,340 14.7% 57,321 14.9% Diesel fuel sold to third parties 12,493 2.6% - 0.0% General and administrative 86,499 18.0% 68,408 17.7% Net loss (gain) on sale and impairment of assets 33,102 6.9% (3,207) -0.8% Gain on insurance recovery (1,937) -0.4% - 0.0% Depreciation and amortization 29,846 6.2% 24,575 6.4% Total operating expenses $ 435,433 90.8% $ 314,458 81.6%
GENESEE & WYOMING INC. AND SUBSIDIARIES RAILROAD FREIGHT REVENUE, CARLOADS AND AVERAGE REVENUE PER CARLOAD COMPARISON BY COMMODITY GROUP (dollars in thousands, except average revenue per carload) (unaudited)
Three Months Ended Three Months Ended December 31, 2006 December 31, 2005 ------------------------------------ ------------------------------------ Average Average Revenue Revenue Freight Per Freight Per Commodity Group Revenues Carloads Carload Revenues Carloads Carload - ---------------------- ---------- ---------- ---------- ---------- ---------- ---------- Pulp & Paper $ 17,121 31,918 $ 536 $ 17,117 36,445 $ 470 Coal, Coke & Ores 12,292 47,249 260 13,382 50,699 264 Minerals & Stone 8,754 30,537 287 7,660 20,023 383 Farm & Food Products 8,744 21,950 398 4,316 13,094 330 Metals 8,618 19,076 452 7,585 20,255 374 Lumber & Forest Products 7,461 19,658 380 9,317 25,582 364 Chemicals-Plastics 5,914 10,417 568 5,683 10,566 538 Petroleum Products 5,853 8,041 728 5,847 7,672 762 Autos & Auto Parts 1,569 2,857 549 1,337 2,734 489 Intermodal 341 878 388 590 1,228 480 Other 3,788 16,565 229 3,181 13,258 240 Totals $ 80,455 209,146 385 $ 76,015 201,556 377
GENESEE & WYOMING INC. AND SUBSIDIARIES RAILROAD FREIGHT REVENUE, CARLOADS AND AVERAGE REVENUE PER CARLOAD COMPARISON BY COMMODITY GROUP (dollars in thousands, except average revenue per carload) (unaudited)
Year Ended Year Ended December 31, 2006 December 31, 2005 ------------------------------------ ------------------------------------ Average Average Revenue Revenue Freight Per Freight Per Commodity Group Revenues Carloads Carload Revenues Carloads Carload - ---------------------- ---------- ---------- ---------- ---------- ---------- ---------- Pulp & Paper $ 69,486 136,649 $ 508 $ 59,401 129,807 $ 458 Coal, Coke & Ores 59,367 198,075 300 51,803 197,891 262 Metals 36,663 84,556 434 28,432 78,221 363 Minerals & Stone 36,236 110,454 328 29,050 73,307 396 Lumber & Forest Products 34,929 91,085 383 35,336 98,087 360 Farm & Food Products 30,048 79,385 379 17,842 52,501 340 Chemicals-Plastics 24,849 42,934 579 21,481 40,434 531 Petroleum Products 22,707 30,982 733 25,717 33,041 778 Autos & Auto Parts 7,033 13,387 525 6,584 13,600 484 Intermodal 1,651 3,936 419 2,151 4,805 448 Other 12,878 59,213 217 8,202 31,579 260 Totals $ 335,847 850,656 395 $ 285,999 753,273 380
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES This earnings release contains free cash flow and adjusted earnings per share, which are "non-GAAP financial measures" as this term is defined in Regulation G of the Securities Exchange Act of 1934. In accordance with Regulation G, GWI has reconciled these non-GAAP financial measures to their most directly comparable U.S. GAAP measures. Free Cash Flow Description and Discussion (dollars in millions) Management views Free Cash Flow, as reconciled within this earnings release, 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/Provided by Investing Activities, excluding the Cost of Acquisitions/Proceeds from Divestitures. 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 (GAAP). Year Ended December 31, --------------------------- 2006 2005 ------------ ------------ Net cash provided by operating activities $ 83.3 $ 68.1 Net cash provided by (used in) investing activities 227.5 (271.8) Cash proceeds from divestitures (306.7) - Cash used for acquisitions 20.4 244.7 Free cash flow $ 24.4 $ 41.0 Adjusted Net Income and Adjusted Earnings per Share - Diluted Description and Discussion (dollars in millions, except per share amounts) Management views the Earnings per Share - Diluted, calculated as Net Income divided by Weighted Average Shares - Diluted, as an important measure of GWI's operating performance. Management presents Adjusted Net Income and Adjusted Earnings per share - Diluted because it believes these measures are useful for investors to be able to assess GWI's financial results compared with the same period in the prior year. Adjusted Net Income and Adjusted Earnings per Share - Diluted exclude the effects of the ARG Sale and the non-cash impairments in Mexico and Bolivia in the year ended December 31, 2006, which makes this comparison possible. Adjusted Net Income and Adjusted Earnings per Share - Diluted are not intended to represent and should not be considered more meaningful than, or as an alternate to, Net Income or Earnings per Share calculations determined in accordance with GAAP. Year Ended December 31, 2006 --------------------------- Net Income Diluted EPS - ------------------------------ ------------ ------------ As Reported $ 134.0 $ 3.16 Impact of ARG Sale (114.5) (2.70) Mexico & Bolivia impairments 39.8 0.94 Excluding above items $ 59.3 $ 1.40 SOURCE Genesee & Wyoming Inc. -0- 02/13/2007 /CONTACT: Michael Williams, GWI Corporate Communications 1-203-629-3722 mwilliams@gwrr.com / /Web site: http://www.gwrr.com / (GWR) -----END PRIVACY-ENHANCED MESSAGE-----