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09:00 AM BW RailAmerica, Inc. Reports Record Second Quarter And Six Months 1998 Results...
RailAmerica, Inc. Reports Record Second Quarter And Six Months 1998 Results; Net Income Up 344 Percent in Quarter
August 5, 1998 09:00 AM
BOCA RATON, Fla.--(BUSINESS WIRE)--Aug. 5, 1998--RailAmerica, Inc. RAIL today announced its financial results for the second quarter and six months ended June 30, 1998. For the second quarter and six month periods, the Company achieved record revenues, carloadings, operating income and net income.
Compared with the second quarter of 1997, operating revenues increased 74% to a record $20.2 million, while operating income increased 125% to $3.3 million. Net income soared 344% to $1.4 million, or $.15 per basic share, on 9.6 million weighted average common shares, compared with $0.3 million, or $.04 per basic share, on 8.4 million weighted average common shares in the 1997 quarter.
For the six months ended June 30, 1998, operating revenues reached an all-time high of $34.6 million, a 70% increase when compared with the same period of 1997, and operating income was $5.3 million, a 116% increase over 1997. Income from continuing operations rose 333% to $2.1 million, or $.22 per basic share, on 9.4 million common shares, versus $0.5 million, or $.06 per basic share, on 8.0 million common shares in the first half of 1997. Net income for the 1998 six month period, after the loss from discontinued operations, increased 447% to $2.0 million, or $.21 per basic share, from $0.4 million, or $.05 per basic share, in the comparable 1997 period.
Gary O. Marino, RailAmerica, Inc. Chairman, President and Chief Executive Officer, said, "I am delighted with our Company's outstanding second quarter and six month results. Driven by superb performances at Ferronor, our Chilean railroad, and our trailer manufacturing group, these results exceeded the Company's business plan. Looking ahead, the commencement in July of two large mining transportation contracts at Ferronor, combined with increased production at the trailer manufacturing group due to expanded facilities and higher carloadings at our core domestic railroads, should allow the Company to continue generating solid results for the remainder of this year and beyond."
Revenues from rail operations increased 29% to $6.9 million in the quarter, and through the first six months increased 29% to $12.5 million, as compared with the same period of 1997. Rail freight carloadings for the second quarter were 35,574, an increase of 115% over the prior year's quarter. Year-to-date carloadings increased 81% to 55,452. The growth in carloadings was primarily attributable to new business at the Company's railroad in Chile.
Compared with the same periods of 1997, revenues at Kalyn/Siebert, Inc., RailAmerica's wholly-owned specialty truck trailer manufacturing subsidiary, were up 86% to $11.1 million in the second quarter, and up 96% to $19.7 million through the first half of 1998. Trailer production for the second quarter was 326 units, an increase of 85% over the prior year's quarter. Year-to-date trailer production rose 74% to 557 units. The increased revenues and number of trailer units were primarily due to the commencement of business under several new government contracts and the inclusion of the newly-acquired Canadian manufacturer, Kalyn/Siebert Canada.
Added Marino, "Furthermore, we will continue to pursue strategic acquisitions both domestically and internationally, and currently anticipate closure on several such transactions prior to year-end 1998. We also anticipate that our domestic railroads will benefit from increasing service levels which should result in higher traffic for the balance of the year, especially in grain carloadings, which were depressed in the first six months due to lower grain prices. We believe that the strength of our existing businesses, combined with our growth through acquisitions, should lead to increased profitability for RailAmerica for the foreseeable future."
RailAmerica, Inc. is a diversified international transportat
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