Restatement

6 Months Ended

Jun. 30, 2012

Restatement [Abstract]

Restatemen

13. Restatement

For the three and six-month periods ended June 30, 2012, the Company recorded $3.2 million, of other income from the Amtrak Agreement within revenues. The Company has determined that the other income should have been presented as a reduction of operating expenses. As a result, the Company is restating its financial statements and related disclosures to recognize a reduction of both revenue and operating expenses for the three and six-month periods ended June 30, 2012 for this item. Additionally, the Company reduced related accounts receivable and deferred revenue recorded in conjunction with the Amtrak Agreement in the amount of $2.4 million. As a result, in this Form 10-Q/A, the Company is restating its financial statements and related disclosures to recognize a reduction of both other income and operating expenses for the three and six-month periods ended June 30, 2012 for this item and its balance sheet at June 30, 2012. Such adjustments have no impact on operating income, net income or net cash flows.

In connection with this restatement, the Company also chose to correct classification errors within other income that were immaterial individually and in the aggregate. These other classification errors moved income previously included within revenues to other income below operating income for the three and six months ended June 30, 2012 and 2011. Such amounts were $23 thousand and $97 thousand for the three months ended June 30, 2012 and 2011, respectively and $26 thousand and $126 thousand for the six months ended June 30, 2012 and 2011, respectively.

The tables below present the effects of the restatement on the balance sheets (in thousands):

	June 30, 2012
	Previously Reported		Adjustments			Restated
Accounts receivable	$	4,029	$	(560	)	$	3,469
Total current assets		9,052		(560	)		8,492
Accounts receivable, less current portion		2,549		(2,549	)		—
Property and Equipment, net		85,344		685			86,029
Total assets		109,402		(2,424	)		106,978
Current portion of deferred grant and other revenue		890		(560	)		330
Total current liabilities		6,692		(560	)		6,132
Deferred Grant Income and Other Revenue		12,297		(1,864	)		10,433
Total liabilities and equity		109,402		(2,424	)		106,978

The tables below present the effects of the restatement on the statements of operations (in thousands):

	For the three months ended June 30, 2012									For the six months ended June 30, 2012
	Previously Reported			Adjustments			Restated			Previously Reported			Adjustments			Restated
Revenue
Operating Revenues	$	8,214		$	140		$	8,354		$	14,873		$	260		$	15,133
Other Income		3,316			(3,316	)		—			3,439			(3,439	)		—
Total revenues		11,530			(3,176	)		8,354			18,312			(3,179	)		15,133
Operating Expenses
Maintenance of Way		1,765			(3,006	)		(1,241	)		3,206			(3,006	)		200
Maintenance of Equipment		945			—			945			1,841			—			1,841
Transportation		2,557			—			2,557			5,106			—			5,106
General and Administrative		1,141			—			1,141			2,362			—			2,362
Depreciation		834			—			834			1,662			—			1,662
Taxes, other than income taxes		841			—			841			1,514			—			1,514
Car Hire, net		257			—			257			492			—			492
Employee retirement plans		54			—			54			108			—			108
Track usage		13			(147	)		(134	)		261			(147	)		114
Total Operating Expenses		8,407			(3,153	)		5,254			16,552			(3,153	)		13,399
Operating Income (Loss) before Interest Expense, Other Income and Income Taxes		3,123			(23	)		3,100			1,760			(26	)		1,734
Other Income		—			23			23			—			26			26
Interest Expense		53			—			53			106			—			106
Income (Loss) before Income Taxes		3,070			—			3,070			1,654			—			1,654
Income Tax Provision (Benefit)		(29	)		—			(29	)		(545	)		—			(545	)
Net Income		3,099			—			3,099			2,199			—			2,199

There were no changes to the statement of operations for the three or six months ended June 30, 2011 related to the restatement.

The tables below present the effects of the restatement on the statements of cash flows (in thousands):

	For the six months ended June 30, 2012
	Previously Reported			Adjustments			Restated
Cash flows from operating activities:
Net income	$	2,199		$	—		$	2,199
Adjustment to reconcile net income to net cash provided by operating activities:
Non-cash component of Amtrak Agreement		—			(1,108	)		(1,108	)
Accounts receivable		(762	)		863			101
Accounts payable and accrued expenses		(1,115	)		245			(870	)

There were no changes to the statement of cash flows for the six months ended June 30, 2011.

*                     *                     *