Rail Reports Earnings After Close.
Beats Estimate:RailAmerica Reports Earnings of $.14 Per Diluted Share For the First Quarter of 2001
Year 2001 Earnings on Track for $1.00 Per Share
BOCA RATON, Fla., May 15 /PRNewswire/ -- RailAmerica, Inc. (Nasdaq: RAIL - news), the world's largest operator of short line and regional freight railroads, today reported financial results for the first quarter ended March 31, 2001.
Income from continuing operations and net income for the first quarter of 2001 was $2.8 million, or $.14 per diluted share, on 21.4 million weighted average shares. In the first quarter of 2000, the Company reported a loss from continuing operations of $0.9 million, or $.06 per diluted share, on 16.5 million diluted shares, and a net loss of $3.2 million, or $.20 per diluted share.
The Company stated that the decline in the Australian and Canadian currencies relative to the U.S. dollar during the quarter, 13% and 5% respectively, had a significant impact on its first quarter 2001 results. On a constant currency basis using first quarter 2000 exchange rates and excluding acquisition-related costs of $0.2 million, or $.01 per diluted share, pro forma income from continuing operations for the first quarter of 2001 was $3.8 million, or $.18 per diluted share. Excluding acquisition- related costs, a non-cash foreign exchange loss and certain financing related costs, first quarter 2000 pro forma income from continuing operations was $3.0 million, or $.17 per diluted share.
First quarter 2001 consolidated revenues rose 14% to a first quarter record of $92.0 million and ``same railroad'' carloads increased 5% to 309,859. Operating income for 2001 was up 29% to a first quarter record of $17.9 million, while EBITDA rose 22% to $24.7 million. On a constant currency basis, revenues, operating income and EBITDA for the first quarter of 2001 were $97.3 million, $19.3 million and $26.3 million, respectively.
As compared with the first quarter of 2000, North American railroad revenues for 2001 rose 26% to $61.8 million, despite the negative impact of the decline in the Canadian exchange rate. ``Same railroad'' freight carloads increased 4% to 228,110. The operating ratio for North America improved to 77.2% from 78.3% in 2000. On a constant currency basis, international revenues were up 15%, achieving record results at the Company's Australian and Chilean railroads. However, due to the decline of the Australian dollar, reported revenues for the international properties decreased 4% to $30.0 million, while carloads for the quarter were up 10% to 81,749. The Company's international railroad operating ratio improved to 76.5% in the 2001 quarter, versus 81.7% in 2000.
``Our management team did an excellent job of increasing revenues and controlling costs in a tough business environment this quarter,'' said Gary O. Marino, Chairman, President and CEO of RailAmerica. ``Despite a slowing economy in North America, higher fuel costs worldwide and depreciating foreign currency values, we were able to significantly improve our operating performance in virtually every category of measurement over last year.''
Marino continued, ``We are continuing our asset rationalization program and have a number of transactions in process that should close during the balance of this year, with the proceeds to be used to further reduce debt. We are also working diligently on our rolling stock sale/leaseback program, where a major portion of the outstanding transactions remain to be completed in Australia. However, the present interest and currency exchange rate environment may affect the timing of these transactions.
``Over the past four years, our revenues, EBITDA, operating income and net income have all grown at a compound annual rate of more than 100 percent, and looking ahead we are confident that we can continue to substantially grow our business through solid internal growth and selective, strategic acquisitions. The environment for acquisitions in both North America and overseas is better now than ever, and future acquisitions completed should be accretive to earnings and improve our leverage and debt coverage ratios. Finally, based on the strength of our business this quarter, we are confident that we will meet current analysts consensus earnings estimates of approximately $1.00 per diluted share in 2001, exclusive of any new acquisitions.''
RailAmerica, Inc. (www.railamerica.com), the world's largest short line and regional railroad operator, owns 39 short line and regional railroads operating approximately 11,000 route miles in the United States, Canada, Australia and the Republic of Chile. In North America, the Company's railroads operate in 22 states and six Canadian provinces. Internationally, the Company operates an additional 4,300 route miles under track access arrangements in Australia and Argentina. In October 2000, RailAmerica was ranked 103rd on Forbes magazine's list of the 200 Best Small Companies in America.
Disclaimer Regarding Forward-Looking Statements: This press release contains statements about RailAmerica's future that are not statements of historical fact. The words ``believe,'' ``expect,'' ``anticipate,'' ``project,'' and similar expressions signify forward-looking statements. These statements are ``forward-looking statements'' for purposes of applicable securities laws, and are based on current information and/or management's good faith belief as to future events. Forward-looking statements speak only as of the date the statement was made. The Company assumes no obligation to update forward- looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. Forward- looking statements regarding future events and the performance of RailAmerica are subject to risks and uncertainties that could cause actual results to differ materially including, but not limited to: fuel costs, foreign currency risks, failure to successfully integrate acquisitions, failure to service debt, failure to successfully market and sell non-core/non-strategic properties and assets, failure to accomplish new marketing initiatives, economic conditions, customer demand, increased competition in the relevant market, and others. We refer you to the documents that RailAmerica files from time to time with the Securities and Exchange Commission, such as the Form 10-K, Form 10-Q and Form 8-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.
-- Tables to Follow --
RAILAMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)
(Amounts in thousands, except per share) Three Months Ended
March 31
2001 2000
Operating Revenue:
North America $61,818 $49,179
International 29,997 31,342
Other 140 286
Total Operating Revenue 91,955 80,807
Operating Expenses 67,282 60,600
Depreciation & Amortization 6,730 6,265
Total Operating Expenses 74,012 66,865
Operating Income 17,943 13,942
Interest Expense (including amortization
costs of $1.1 million in each period) (14,447) (12,754)
Minority Interest & Other Income (Expense) 105 (2,599)
Income Before Taxes 3,601 (1,411)
Income Taxes 813 (522)
Income (Loss) from Continuing Operations $2,788 ($889)
Discontinued Operations -- (77)
Extraordinary Loss from Early
Extinguishment of Debt -- (2,216)
Net Income (Loss) $2,788 ($3,182)
Diluted Earnings Per Share:
Continuing Operations $0.14 ($0.06)
Discontinued Operations -- (0.01)
Extraordinary Item -- (0.13)
Net Income (Loss) $0.14 ($0.20)
Wtd. Avg. Diluted Common Shares Outstanding 21,446 16,469
RAILAMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(Amounts in thousands) March 31, December 31,
2001 2000
ASSETS
Current Assets:
Cash & Cash Equivalents $7,094 $13,090
Cash in Escrow 2,918 4,539
Accounts and Notes Receivable, Net 59,345 62,864
Other Current Assets 18,681 19,551
Total Current Assets 88,038 100,044
Property, Plant and Equipment, Net 703,914 715,020
Other, Net 22,609 24,639
Total Assets $814,561 $839,703
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current Maturities of Long-term Debt $20,999 $20,558
Accounts Payable 40,326 39,752
Accrued Expenses 47,016 47,305
Total Current Liabilities 108,341 107,615
Long-term Debt, Less Current Maturities 335,987 338,298
Long-term Subordinated Debt 141,144 141,411
Deferred Income Taxes 83,030 87,288
Minority Interest & Other Liabilities 43,364 35,044
Redeemable Convertible Preferred Stock 6,642 6,613
Stockholders' Equity:
Common Stock 19 19
Additional Paid-in Capital 118,701 118,502
Retained Earnings 31,813 29,162
Accumulated Other Comprehensive Income (Loss) (54,480) (24,249)
Total Stockholders' Equity 96,053 123,434
Total Liabilities and Stockholders' Equity $814,561 $839,703
SOURCE: RailAmerica, Inc.
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