DELAWARE | 1-4717 | 44-0663509 |
(State or other jurisdiction | (Commission | (IRS Employer |
of incorporation) | file number) | Identification Number) |
By: | /s/ Mary K. Stadler |
Name: Mary K. Stadler | |
Title: Senior Vice President & Chief Accounting Officer | |
(Principal Accounting Officer) |
Exhibit No | Description | ||
99.1 | Press Release dated October 21, 2011 issued by Kansas City Southern entitled “Kansas City Southern Reports Record Third Quarter 2011 Carloadings and Revenue; Operating Income Increases 57%”. |
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• | Record revenues of $545 million, up 24% from prior year or 16%, adjusted for the 2010 hurricane impact |
• | Operating income of $182 million, an increase of 57%, or 19% adjusted for hurricane-related impacts and a 2010 post-employment expense benefit |
• | Reported operating ratio of 66.6% or 71.3% adjusted for the hurricane-related impact |
• | Reported diluted earnings per share were $0.91 for the third quarter 2011 up from $0.48 in the third quarter 2010. Adjusted for hurricane-related impacts, a 2010 post-employment expense benefit, and debt retirement costs, diluted earnings per share were $0.78 and $0.59 respectively. |
GAAP RECONCILIATIONS ($ in millions, except per share amounts) | |||||||
Reconciliation of Diluted Earnings per Share to Adjusted Diluted Earnings per Share | Three Months Ended September 30, | ||||||
2011 | 2010 | ||||||
Diluted earnings per share | $ | 0.91 | $ | 0.48 | |||
Adjustment for debt retirement costs | 0.02 | 0.01 | |||||
Adjustment for gain on insurance recoveries | (0.15 | ) | — | ||||
Adjustment for estimated impact from Hurricane Alex | — | 0.14 | |||||
Adjustment for post-employment expense benefit | — | (0.04 | ) | ||||
Adjusted diluted earnings per share - see (a) below | $ | 0.78 | $ | 0.59 |
Reconciliation of Revenues to Adjusted Revenues | Three Months Ended September 30, | ||||||
2011 | 2010 | ||||||
Revenues as reported | $ | 544.5 | $ | 438.3 | |||
Adjustment for estimated impact from Hurricane Alex | — | 33.0 | |||||
Adjusted revenues - see (a) below | $ | 544.5 | $ | 471.3 |
Reconciliation of Operating Expenses to Adjusted Operating Expenses | Three Months Ended September 30, | ||||||
2011 | 2010 | ||||||
Operating expenses as reported | $ | 362.7 | $ | 322.3 | |||
Adjustment for estimated impact from Hurricane Alex | — | 11.0 | |||||
Adjustment for gain on insurance recoveries | 25.6 | — | |||||
Adjustment for post-employment expense benefit | — | 6.2 | |||||
Adjusted operating expenses - see (a) below | $ | 388.3 | $ | 339.5 |
Operating income as reported | $ | 181.8 | $ | 116.0 | |||
Adjusted operating income | $ | 156.2 | $ | 131.8 | |||
Operating ratio (b) as reported | 66.6 | % | 73.5 | % | |||
Adjusted operating ratio - see (a) below | 71.3 | % | 72.0 | % |
(a) | The Company believes adjusted diluted earnings per share, revenues, operating expenses and operating ratio are meaningful as it allows investors to evaluate the Company's performance for different periods on a more comparable basis by excluding items that do not relate to the ongoing operations of the Company. |
(b) | Operating ratio is operating expense as a percentage of revenues. |
Kansas City Southern | |||||||||||||||
Consolidated Statements of Income | |||||||||||||||
(In millions, except share and per share amounts) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues | $ | 544.5 | $ | 438.3 | $ | 1,568.0 | $ | 1,336.2 | |||||||
Operating expenses: | |||||||||||||||
Compensation and benefits | 109.3 | 87.3 | 314.1 | 271.7 | |||||||||||
Purchased services | 50.6 | 48.0 | 153.5 | 140.9 | |||||||||||
Fuel | 86.5 | 61.8 | 258.0 | 191.7 | |||||||||||
Equipment costs | 41.4 | 37.5 | 125.5 | 117.5 | |||||||||||
Depreciation and amortization | 47.9 | 46.1 | 139.1 | 138.8 | |||||||||||
Gain on insurance recoveries related to hurricane damage | (25.6 | ) | — | (25.6 | ) | — | |||||||||
Materials and other | 52.6 | 41.6 | 142.2 | 124.2 | |||||||||||
Total operating expenses | 362.7 | 322.3 | 1,106.8 | 984.8 | |||||||||||
Operating income | 181.8 | 116.0 | 461.2 | 351.4 | |||||||||||
Equity in net earnings of unconsolidated affiliates | 4.7 | 5.2 | 13.6 | 16.2 | |||||||||||
Interest expense | (32.2 | ) | (36.2 | ) | (97.7 | ) | (122.5 | ) | |||||||
Debt retirement costs | (3.9 | ) | (1.9 | ) | (14.2 | ) | (49.3 | ) | |||||||
Foreign exchange gain (loss) | (7.2 | ) | 2.0 | (6.9 | ) | 3.2 | |||||||||
Other income, net | 0.6 | 2.4 | 2.3 | 3.9 | |||||||||||
Income before income taxes | 143.8 | 87.5 | 358.3 | 202.9 | |||||||||||
Income tax expense | 43.7 | 34.7 | 122.4 | 78.5 | |||||||||||
Net income | 100.1 | 52.8 | 235.9 | 124.4 | |||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 0.3 | (0.1 | ) | 1.3 | (1.2 | ) | |||||||||
Net income attributable to Kansas City Southern and subsidiaries | 99.8 | 52.9 | 234.6 | 125.6 | |||||||||||
Preferred stock dividends | — | 2.7 | 1.5 | 8.2 | |||||||||||
Net income available to common stockholders | $ | 99.8 | $ | 50.2 | $ | 233.1 | $ | 117.4 | |||||||
Earnings per share: | |||||||||||||||
Basic earnings per share | $ | 0.91 | $ | 0.49 | $ | 2.16 | $ | 1.18 | |||||||
Diluted earnings per share | $ | 0.91 | $ | 0.48 | $ | 2.13 | $ | 1.17 | |||||||
Average shares outstanding (in thousands): | |||||||||||||||
Basic | 109,515 | 102,082 | 107,752 | 99,337 | |||||||||||
Potentially dilutive common shares | 347 | 7,428 | 2,052 | 7,485 | |||||||||||
Diluted | 109,862 | 109,510 | 109,804 | 106,822 |
Kansas City Southern | ||||||||||||||||||||||||||||||
Revenue & Carloads/Units by Commodity - Third Quarter 2011 and 2010 | ||||||||||||||||||||||||||||||
Revenues | Carloads and Units | Revenue per | ||||||||||||||||||||||||||||
(in millions) | (in thousands) | Carload/Unit | ||||||||||||||||||||||||||||
Third Quarter | % | Third Quarter | % | Third Quarter | % | |||||||||||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | 2011 | 2010 | Change | ||||||||||||||||||||||
Chemical & Petroleum | ||||||||||||||||||||||||||||||
Agri Chemicals | $ | 4.9 | $ | 5.2 | (6 | %) | 3.5 | 3.3 | 6 | % | $ | 1,400 | $ | 1,576 | (11 | %) | ||||||||||||||
Other Chemicals | 45.2 | 37.2 | 22 | % | 26.1 | 25.2 | 4 | % | 1,732 | 1,476 | 17 | % | ||||||||||||||||||
Petroleum | 27.6 | 24.5 | 13 | % | 19.1 | 17.3 | 10 | % | 1,445 | 1,416 | 2 | % | ||||||||||||||||||
Plastics | 26.0 | 19.9 | 31 | % | 16.6 | 15.0 | 11 | % | 1,566 | 1,327 | 18 | % | ||||||||||||||||||
Total | 103.7 | 86.8 | 19 | % | 65.3 | 60.8 | 7 | % | 1,588 | 1,428 | 11 | % | ||||||||||||||||||
Industrial & Consumer Products | ||||||||||||||||||||||||||||||
Forest Products | 62.5 | 50.2 | 25 | % | 33.3 | 32.2 | 3 | % | 1,877 | 1,559 | 20 | % | ||||||||||||||||||
Metals & Scrap | 54.2 | 37.6 | 44 | % | 32.5 | 24.8 | 31 | % | 1,668 | 1,516 | 10 | % | ||||||||||||||||||
Other | 20.1 | 16.1 | 25 | % | 21.0 | 18.0 | 17 | % | 957 | 894 | 7 | % | ||||||||||||||||||
Total | 136.8 | 103.9 | 32 | % | 86.8 | 75.0 | 16 | % | 1,576 | 1,385 | 14 | % | ||||||||||||||||||
Agriculture & Minerals | ||||||||||||||||||||||||||||||
Grain | 48.2 | 49.9 | (3 | %) | 29.4 | 31.2 | (6 | %) | 1,639 | 1,599 | 3 | % | ||||||||||||||||||
Food Products | 38.5 | 30.1 | 28 | % | 17.3 | 16.4 | 5 | % | 2,225 | 1,835 | 21 | % | ||||||||||||||||||
Ores & Minerals | 14.8 | 12.2 | 21 | % | 11.9 | 11.7 | 2 | % | 1,244 | 1,043 | 19 | % | ||||||||||||||||||
Stone, Clay & Glass | 6.6 | 5.0 | 32 | % | 3.6 | 2.9 | 24 | % | 1,833 | 1,724 | 6 | % | ||||||||||||||||||
Total | 108.1 | 97.2 | 11 | % | 62.2 | 62.2 | — | 1,738 | 1,563 | 11 | % | |||||||||||||||||||
Coal | ||||||||||||||||||||||||||||||
Unit Coal | 64.6 | 55.7 | 16 | % | 63.1 | 64.1 | (2 | %) | 1,024 | 869 | 18 | % | ||||||||||||||||||
Other Coal | 9.8 | 7.9 | 24 | % | 11.2 | 10.1 | 11 | % | 875 | 782 | 12 | % | ||||||||||||||||||
Total | 74.4 | 63.6 | 17 | % | 74.3 | 74.2 | — | 1,001 | 857 | 17 | % | |||||||||||||||||||
Intermodal | 65.7 | 47.7 | 38 | % | 208.0 | 170.3 | 22 | % | 316 | 280 | 13 | % | ||||||||||||||||||
Automotive | 36.7 | 23.3 | 58 | % | 21.4 | 16.5 | 30 | % | 1,715 | 1,412 | 21 | % | ||||||||||||||||||
TOTAL FOR COMMODITY GROUPS | 525.4 | 422.5 | 24 | % | 518.0 | 459.0 | 13 | % | $ | 1,014 | $ | 920 | 10 | % | ||||||||||||||||
Other Revenue | 19.1 | 15.8 | 21 | % | ||||||||||||||||||||||||||
TOTAL | $ | 544.5 | $ | 438.3 | 24 | % |
Kansas City Southern | ||||||||||||||||||||||||||||||
Revenue & Carload/Units by Commodity - Year to Date September 30, 2011 and 2010 | ||||||||||||||||||||||||||||||
Revenues | Carloads and Units | Revenue per | ||||||||||||||||||||||||||||
(in millions) | (in thousands) | Carload/Unit | ||||||||||||||||||||||||||||
Year to Date | % | Year to Date | % | Year to Date | % | |||||||||||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | 2011 | 2010 | Change | ||||||||||||||||||||||
Chemical & Petroleum | ||||||||||||||||||||||||||||||
Agri Chemicals | $ | 16.5 | $ | 17.4 | (5 | %) | 11.0 | 11.1 | (1 | %) | $ | 1,500 | $ | 1,568 | (4 | %) | ||||||||||||||
Other Chemicals | 131.4 | 114.2 | 15 | % | 78.2 | 75.5 | 4 | % | 1,680 | 1,513 | 11 | % | ||||||||||||||||||
Petroleum | 86.0 | 75.6 | 14 | % | 57.4 | 55.0 | 4 | % | 1,498 | 1,375 | 9 | % | ||||||||||||||||||
Plastics | 73.6 | 62.6 | 18 | % | 48.7 | 45.9 | 6 | % | 1,511 | 1,364 | 11 | % | ||||||||||||||||||
Total | 307.5 | 269.8 | 14 | % | 195.3 | 187.5 | 4 | % | 1,575 | 1,439 | 9 | % | ||||||||||||||||||
Industrial & Consumer Products | ||||||||||||||||||||||||||||||
Forest Products | 174.0 | 148.4 | 17 | % | 96.8 | 95.8 | 1 | % | 1,798 | 1,549 | 16 | % | ||||||||||||||||||
Metals & Scrap | 149.1 | 115.0 | 30 | % | 90.4 | 76.7 | 18 | % | 1,649 | 1,499 | 10 | % | ||||||||||||||||||
Other | 57.2 | 49.5 | 16 | % | 62.3 | 54.2 | 15 | % | 918 | 913 | 1 | % | ||||||||||||||||||
Total | 380.3 | 312.9 | 22 | % | 249.5 | 226.7 | 10 | % | 1,524 | 1,380 | 10 | % | ||||||||||||||||||
Agriculture & Minerals | ||||||||||||||||||||||||||||||
Grain | 158.1 | 164.9 | (4 | %) | 95.0 | 102.5 | (7 | %) | 1,664 | 1,609 | 3 | % | ||||||||||||||||||
Food Products | 113.6 | 98.7 | 15 | % | 53.0 | 52.5 | 1 | % | 2,143 | 1,880 | 14 | % | ||||||||||||||||||
Ores & Minerals | 43.9 | 39.7 | 11 | % | 37.0 | 36.1 | 2 | % | 1,186 | 1,100 | 8 | % | ||||||||||||||||||
Stone, Clay & Glass | 19.1 | 15.8 | 21 | % | 10.3 | 9.8 | 5 | % | 1,854 | 1,612 | 15 | % | ||||||||||||||||||
Total | 334.7 | 319.1 | 5 | % | 195.3 | 200.9 | (3 | %) | 1,714 | 1,588 | 8 | % | ||||||||||||||||||
Coal | ||||||||||||||||||||||||||||||
Unit Coal | 178.6 | 152.6 | 17 | % | 179.1 | 180.6 | (1 | %) | 997 | 845 | 18 | % | ||||||||||||||||||
Other Coal | 28.4 | 23.3 | 22 | % | 32.2 | 30.7 | 5 | % | 882 | 759 | 16 | % | ||||||||||||||||||
Total | 207.0 | 175.9 | 18 | % | 211.3 | 211.3 | — | 980 | 832 | 18 | % | |||||||||||||||||||
Intermodal | 181.9 | 139.9 | 30 | % | 578.5 | 492.4 | 17 | % | 314 | 284 | 11 | % | ||||||||||||||||||
Automotive | 102.2 | 69.3 | 47 | % | 62.0 | 51.8 | 20 | % | 1,648 | 1,338 | 23 | % | ||||||||||||||||||
TOTAL FOR COMMODITY GROUPS | 1,513.6 | 1,286.9 | 18 | % | 1,491.9 | 1,370.6 | 9 | % | $ | 1,015 | $ | 939 | 8 | % | ||||||||||||||||
Other Revenue | 54.4 | 49.3 | 10 | % | ||||||||||||||||||||||||||
TOTAL | $ | 1,568.0 | $ | 1,336.2 | 17 | % |
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