GREENWICH, Conn., Feb. 8, 2010 /PRNewswire-FirstCall/ -- Genesee
& Wyoming Inc. (GWI) (NYSE:GWR) reported net income in the
fourth quarter of 2009 of $18.3 million, compared with net income
of $25.3 million in the fourth quarter of 2008. GWI's diluted
earnings per share (EPS) in the fourth quarter of 2009 were $0.44
with 41.3 million weighted average shares outstanding, compared
with diluted EPS of $0.70 with 36.4 million weighted average shares
outstanding in the fourth quarter of 2008. GWI's results for the
fourth quarter of 2009 included gains on the sale of assets of $0.8
million ($0.5 million after-tax, or $0.01 per diluted share).
Fourth quarter results also included a tax benefit of approximately
$1.0 million, or $0.03 per diluted share, as a result of applying
GWI's full year effective income tax rate to results for the first
nine months of 2009. Results for the fourth quarter of 2008
included gains on the sale of assets of $3.9 million ($2.7 million
after-tax, or $0.07 per diluted share), $2.0 million of
acquisition-related expenses ($1.3 million after-tax, or $0.03 per
diluted share) and certain net tax benefits of $9.3 million, or
$0.26 per diluted share, primarily related to the extension of the
short line tax credit. The table below summarizes the financial
impact of the significant items in the fourth quarter of 2009 and
2008 ($ millions, except per share amounts). Pre-Tax After-Tax
Amount Amount (a) EPS Impact -------- ---------- ----------- Q4
2009 -Gains on the sale of assets $0.8 $0.5 $0.01 -Net tax benefits
- $1.0 $0.03
-----------------------------------------------------------------
Q4 2008 -Gains on the sale of assets $3.9 $2.7 $0.07
-Acquisition-related expense ($2.0) ($1.3) ($0.03) -Certain net tax
benefits (b) - $9.3 $0.26 (a) Other than tax credits and deferred
tax valuation allowances, all after-tax amounts presented are
calculated using the marginal effective income tax rate for the
appropriate jurisdictions where the transactions occurred. (b)
Includes a net tax benefit of $6.5 million related to the impact of
the retroactive extension of the U.S. short line tax credit for the
first nine months of 2008 and a net tax benefit of $4.8 million
related to the impact of acquisitions on GWI's consolidated U.S.
tax position, partially offset by deferred tax valuation allowances
of $2.0 million in Australia and Canada. Results from Continuing
Operations In the fourth quarter of 2009, GWI's total revenues
decreased $9.2 million, or 6.2%, to $139.9 million, compared with
$149.2 million in the fourth quarter of 2008. During the fourth
quarter of 2009, the appreciation of the Australian and Canadian
dollars and the Euro versus the U.S. dollar increased revenues by
$7.6 million, partially offset by a $1.3 million decrease due to a
decline in third-party fuel sales. Excluding currency and fuel
sales, GWI's revenues declined $15.5 million, or 10.4%. Freight
revenues in the fourth quarter of 2009 decreased by $13.1 million,
or 13.8%, to $82.1 million, compared with $95.2 million in the
fourth quarter of 2008. Freight revenues were increased by $3.2
million due to the appreciation of the Australian and Canadian
dollars. Excluding currency, GWI's freight revenues decreased by
$16.3 million, or 17.2%. Average freight revenues per carload
increased 3.5% in the fourth quarter of 2009. During the fourth
quarter of 2009, average revenues per carload were negatively
impacted by lower fuel surcharges, which reduced average revenues
per carload by 5.3%, and positively impacted by the appreciation of
the Canadian and Australian dollars and changes in commodity mix
that increased average revenue per carload by 3.5% and 0.6%,
respectively. Excluding these factors, average revenues per carload
increased 4.7%. In the United States and Canada, excluding currency
effects, changes in commodity mix and changes in fuel surcharges,
average revenues per carload increased 4.4% in the fourth quarter
of 2009 compared with the fourth quarter of 2008. Decreases in the
rail cost adjustment factor (RCAF), a measure of railroad inflation
published by the Association of American Railroads to which certain
contract freight rates are indexed, had the impact of reducing U.S.
and Canada average revenues per carload by approximately 1%. GWI's
non-freight revenues in the fourth quarter of 2009 increased $3.9
million, or 7.1%, to $57.8 million compared with $54.0 million in
the fourth quarter of 2008. The increase in non-freight revenues
included a $4.4 million increase due to the appreciation of the
Australian and Canadian dollars and the Euro versus the U.S.
dollar, partially offset by a $1.3 million decrease due to a
decline in third-party fuel sales. Excluding currency and fuel
sales, GWI's non-freight revenues increased $0.8 million, or 1.5%.
GWI's operating income in the fourth quarter of 2009 decreased $2.9
million, or 9.6%, to $27.5 million, compared with $30.4 million in
the fourth quarter of 2008. The operating ratio was 80.4% in the
fourth quarter of 2009, compared with an operating ratio of 79.6%
in the fourth quarter of 2008. Operating income in the fourth
quarter of 2009 included $0.8 million of net gains on the sale of
assets, compared with $3.9 million of net gains on the sale of
assets and $2.0 million of acquisition-related expenses in the
fourth quarter of 2008. Excluding net gains on asset sales and
acquisition-related expenses, GWI's operating ratio was 80.9% in
the fourth quarter of 2009 and 2008. (1) Comments from the Chief
Executive Officer John C. Hellmann, President and CEO of GWI,
commented, "Our revenues in the fourth quarter decreased 6%
compared to the fourth quarter of 2008, but were stable compared to
the third quarter of 2009. Despite the revenue decline from last
year, we continued to manage our costs well and maintained an
operating ratio of 81%. We also experienced a few areas of
unexpected revenue strength in the fourth quarter of 2009,
including grain shipments on the Gulf Coast and steel pipe in the
Southeastern United States." Mr. Hellmann continued, "In 2009, we
generated $75 million of free cash flow, which was the second best
performance in Company history. In the context of the recession, we
think this is an important accomplishment. With $106 million of
cash on our balance sheet and an undrawn revolving credit facility,
we continue to actively evaluate acquisition and investment
opportunities in both North America and Australia." Free Cash Flow
from Continuing Operations (2) ($ in millions) Year Ended December
31, 2009 2008 ---- ---- $126.9 $128.7 Net cash provided by
operating activities Net cash used in investing activities (58.3)
(413.8) Net cash paid/(received) for acquisitions/ divestitures (a)
6.4 345.5 Contingent consideration held in escrow (b) - 7.5 --- ---
Free cash flow (2) $75.0 $67.9 ===== ===== (a) The 2009 period
includes: 1) $4.8 million in net cash paid for final working
capital adjustments related to the acquisition of the Ohio Central
Railroad System (OCR), 2) $1.0 million in net cash paid in
contingent consideration related to the Rotterdam Rail Feeding B.V.
(RRF) acquisition, 3) $4.4 million in cash paid to purchase the
remaining 12.6% interest in Maryland Midland Railway, Inc.
(Maryland Midland) and 4) $3.8 million in cash received from the
sale of Bolivia. The 2008 period includes 1) $212.6 million in net
cash paid for the acquisition of the OCR, 2) $16.7 million in net
cash paid for the acquisition of Georgia Southwestern Railroad,
Inc. (Georgia Southwestern), 3) $89.9 million in net cash paid for
the acquisition of CAGY Industries Inc. (CAGY), 4) $22.6 million in
net cash paid for the acquisition of RRF and 5) $3.7 million for
final working capital adjustments related to the December 2007
acquisition of Maryland Midland. (b) Includes $7.5 million of
contingent consideration placed into escrow by GWI that was paid to
the seller of OCR in 2009 upon satisfaction of certain conditions.
GWI's continuing operations generated free cash flow of $75.0
million and $67.9 million for the years ended December 31, 2009 and
2008, respectively. For the year ended December 31, 2009, changes
in working capital increased net cash flow from operating
activities by $3.8 million. For the year ended December 31, 2008,
changes in working capital increased net cash flow from operating
activities by $7.3 million. Net cash used in investing activities
for the year ended December 31, 2009, included $88.9 million in
purchases of property and equipment, partially offset by $24.6
million in grant proceeds received from outside parties for the
funding of capital projects and $12.3 million from sales of assets
and insurance proceeds. Net cash used in investing activities in
the year ended December 31, 2008, included $97.9 million in
purchases of property and equipment, partially offset by $28.6
million in cash received from government grants and $8.5 million
from sales of assets and insurance proceeds. Conference Call and
Webcast Details As previously announced, GWI's conference call to
discuss financial results for the fourth quarter will be held
Monday, February 8, 2010, at 11 a.m. EST. The dial-in number for
the teleconference is (800) 288-8960; outside U.S., call (612)
332-0107, 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 2009 Earnings Announcement
Webcast." Management will be referring to a slide presentation that
will also be available under the "Investors" tab of GWI's website
prior to the conference call. An audio replay of the conference
call will be accessible via the "Investors" tab of GWI's website
starting at 1 p.m. EST on February 8, 2010, until the following
quarter's results are posted. Telephone replay is available for 30
days beginning at 1 p.m. EST on February 8, 2010, by dialing (800)
475-6701 (or outside U.S., dial 320-365-3844). The access code is
121468. About Genesee & Wyoming Inc. GWI owns and operates
short line and regional freight railroads in the United States,
Canada, Australia and the Netherlands. Operations currently include
62 railroads organized in nine regions, with approximately 6,000
miles of owned and leased track and approximately 3,400 additional
miles under track access arrangements. GWI provides rail service at
16 ports in North America and Europe and performs contract coal
loading and railcar switching for industrial customers. 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, political and industry conditions; customer demand,
retention and contract continuation; legislative and regulatory
developments; increased competition in relevant markets; funding
needs and financing sources; susceptibility to various legal claims
and lawsuits; strikes or work stoppages; severe weather conditions
and other natural occurrences; and others. Words such as
"anticipates," "intends," "plans," "believes," "seeks," "expects,"
"estimates," variations of these words and similar expressions are
intended to identify these forward-looking statements. 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. (1) The
operating ratios that exclude the items described above are non
GAAP financial measures and are not intended to replace the
operating ratios calculated using total operating expenses and
total revenues, calculated on a basis consistent with GAAP. The
information required by Regulation G under the Securities Exchange
Act of 1934, including reconciliation to the operating ratios
calculated using amounts determined in accordance with GAAP, is
included in the tables attached to this press release. (2) Free
Cash Flow is a non-GAAP financial 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. SOURCE:
Genesee & Wyoming Inc. Michael Williams of GWI Corporate
Communications 1-203-629-3722 GENESEE & WYOMING INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE
AND TWELVE MONTHS ENDED DECEMBER 31, 2009 AND 2008 (In thousands,
except per share amounts) (unaudited) Three Months Ended Twelve
Months Ended December 31, December 31, --------------
-------------- 2009 2008 2009 2008 ---- ---- ---- ---- OPERATING
REVENUES $139,907 $149,156 $544,866 $601,984 OPERATING EXPENSES
112,440 118,772 445,544 486,053 ------- ------- ------- -------
INCOME FROM OPERATIONS 27,467 30,384 99,322 115,931 GAIN ON SALE OF
INVESTMENT IN BOLIVIA (36) - 391 - INTEREST INCOME 388 340 1,065
2,093 INTEREST EXPENSE (6,252) (8,406) (26,902) (20,610) OTHER
INCOME/(EXPENSE), NET 206 (90) 2,115 470 --- --- ----- --- INCOME
FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 21,773 22,228 75,991
97,884 PROVISION (BENEFIT) FOR INCOME TAXES 3,519 (3,172) 15,916
24,909 ----- ------ ------ ------ INCOME FROM CONTINUING OPERATIONS
18,254 25,400 60,075 72,975 INCOME/(LOSS) FROM DISCONTINUED
OPERATIONS, NET OF TAX 50 (14) 1,398 (501) -- --- ----- ---- NET
INCOME 18,304 25,386 61,473 72,474 LESS: NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTEREST - (97) (146) (243) --- --- ---- ---- NET
INCOME ATTRIBUTABLE TO GENESEE & WYOMING INC. $18,304 $25,289
$61,327 $72,231 ======= ======= ======= ======= BASIC EARNINGS PER
SHARE ATTRIBUTABLE TO GENESEE & WYOMING INC. COMMON
STOCKHOLDERS: BASIC EARNINGS PER COMMON SHARE FROM CONTINUING
OPERATIONS $0.47 $0.78 $1.66 $2.28 BASIC EARNINGS/(LOSS) PER COMMON
SHARE FROM DISCONTINUED OPERATIONS - - 0.04 (0.02) --- --- ----
----- BASIC EARNINGS PER COMMON SHARE $0.48 $0.78 $1.70 $2.26 =====
===== ===== ===== WEIGHTED AVERAGE SHARES - BASIC 38,444 32,404
36,146 31,922 ====== ====== ====== ====== DILUTED EARNINGS PER
SHARE ATTRIBUTABLE TO GENESEE & WYOMING INC. COMMON
STOCKHOLDERS: DILUTED EARNINGS PER COMMON SHARE FROM CONTINUING
OPERATIONS $0.44 $0.70 $1.54 $2.00 DILUTED EARNINGS/(LOSS) PER
COMMON SHARE FROM DISCONTINUED OPERATIONS - - 0.04 (0.01) --- ---
---- ----- DILUTED EARNINGS PER COMMON SHARE $0.44 $0.70 $1.57
$1.99 ===== ===== ===== ===== WEIGHTED AVERAGE SHARES - DILUTED
41,338 36,371 38,974 36,348 ====== ====== ====== ====== GENESEE
& WYOMING INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS
OF DECEMBER 31, 2009 AND 2008 (In thousands) (unaudited) December
31, --------------- ASSETS 2009 2008 ---- ---- CURRENT ASSETS: Cash
and cash equivalents $105,707 $31,693 Accounts receivable, net
109,931 120,874 Materials and supplies 8,939 7,708 Prepaid expenses
and other 13,223 12,270 Deferred income tax assets, net 15,161
18,101 Current assets of discontinued operations 282 1,676 ---
----- Total current assets 253,243 192,322 ------- ------- PROPERTY
AND EQUIPMENT, net 1,024,297 998,995 GOODWILL 161,208 150,958
INTANGIBLE ASSETS, net 244,464 223,442 DEFERRED INCOME TAX ASSETS,
net 3,122 - OTHER ASSETS, net 10,698 21,564 ------ ------ Total
assets $1,697,032 $1,587,281 ========== ========== LIABILITIES AND
EQUITY CURRENT LIABILITIES: Current portion of long-term debt
$27,818 $26,034 Accounts payable 104,813 124,162 Accrued expenses
38,181 37,903 Deferred income tax liabilities, net 971 192 Current
liabilities of discontinued operations 11 1,121 -- ----- Total
current liabilities 171,794 189,412 ------- ------- LONG-TERM DEBT,
less current portion 421,616 535,231 DEFERRED INCOME TAX
LIABILITIES, net 244,924 234,979 DEFERRED ITEMS - grants from
outside parties 146,345 113,302 OTHER LONG-TERM LIABILITIES 23,476
34,943 TOTAL EQUITY 688,877 479,414 ------- ------- Total
liabilities and equity $1,697,032 $1,587,281 ========== ==========
GENESEE & WYOMING INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS
OF CASH FLOWS FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2009 AND
2008 (In thousands) (unaudited) Twelve Months Ended December 31,
------------------- 2009 2008 ---- ---- CASH FLOWS FROM OPERATING
ACTIVITIES: Net income $61,473 $72,474 Adjustments to reconcile net
income to net cash provided by operating activities: (Income)/loss
from discontinued operations, net of tax (1,398) 501 Depreciation
and amortization 48,110 40,507 Compensation cost related to equity
awards 6,031 5,734 Excess tax benefits from share-based
compensation (1,234) (1,829) Deferred income taxes 7,558 12,205 Net
loss/(gain) on sale and impairment of assets 3,953 (7,708) Gain on
insurance recoveries (3,143) (399) Insurance proceeds received
2,175 - Gain on sale of investment in Bolivia (391) - Changes in
assets and liabilities which provided (used) cash, net of effect of
acquisitions: Accounts receivable, net 16,082 11,541 Materials and
supplies (170) (812) Prepaid expenses and other (622) 6,597
Accounts payable and accrued expenses (10,940) (18,089) Other
assets and liabilities, net (550) 8,024 ---- ----- Net cash
provided by operating activities from continuing operations 126,934
128,746 Net cash used in operating activities from discontinued
operations (746) (3,484) ---- ------ Net cash provided by operating
activities 126,188 125,262 CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (88,865) (97,853) Grant proceeds
from outside parties 24,575 28,551 Cash paid for acquisitions, net
(10,141) (345,477) Contingent consideration held in escrow -
(7,500) Insurance proceeds for the replacement of assets 3,996 419
Proceeds from sale of investment in Bolivia 3,778 - Proceeds from
disposition of property and equipment 8,313 8,081 ----- ----- Net
cash used in investing activities from continuing operations
(58,344) (413,779) ------- -------- Net cash provided by investing
activities from discontinued operations 1,774 450 ----- --- Net
cash used in investing activities (56,570) (413,329) -------
-------- CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments
on long-term borrowings, including capital leases (214,153)
(193,051) Proceeds from issuance of long-term debt 98,000 468,076
Debt issuance costs - (4,340) Net proceeds from employee stock
purchases 5,765 9,314 Treasury stock purchases (434) (2,355) Stock
issuance proceeds, net of stock issuance costs 106,614 - Excess tax
benefits from share-based compensation 1,234 1,829 ----- ----- Net
cash (used in)/provided by financing activities from continuing
operations (2,974) 279,473 EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS 6,832 (5,973) ----- ------ CHANGE IN CASH
BALANCES INCLUDED IN CURRENT ASSETS OF DISCONTINUED OPERATIONS 538
(424) --- ---- INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
74,014 (14,991) CASH AND CASH EQUIVALENTS, beginning of period
31,693 46,684 ------ ------ CASH AND CASH EQUIVALENTS, end of
period $105,707 $31,693 GENESEE & WYOMING INC. AND SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL INFORMATION (dollars in thousands)
(unaudited) Three Months Ended December 31,
------------------------------------ 2009 2008 ----------------
---------------- % of % of Amount Revenue Amount Revenue ------
------- ------ ------- Revenues: --------- Freight $82,089 58.7%
$95,188 63.8% Non-freight 57,818 41.3% 53,968 36.2% ------ ----
------ ---- Total revenues $139,907 100.0% $149,156 100.0% ========
===== ======== ===== Operating Expense Comparison:
----------------------------- Natural Classification
---------------------- Labor and benefits $47,366 33.9% $50,288
33.7% Equipment rents 7,032 5.0% 8,908 6.0% Purchased services
12,119 8.7% 10,567 7.1% Depreciation and amortization 12,637 9.0%
11,636 7.8% Diesel fuel used in operations 9,273 6.6% 11,702 7.8%
Diesel fuel sold to third parties 4,304 3.1% 5,731 3.8% Casualties
and insurance 4,135 3.0% 3,295 2.2% Materials 5,283 3.8% 7,330 4.9%
Net (gain)/loss on sale and impairment of assets (793) (0.6%)
(3,891) (2.6%) Gain on insurance recoveries 1 0.0% - 0.0% Other
expenses 11,083 7.9% 13,206 8.9% ------ --- ------ --- Total
operating expenses $112,440 80.4% $118,772 79.6% ======== ====
======== ==== Functional Classification -------------------------
Transportation $42,912 30.7% $47,073 31.6% Maintenance of ways and
structures 12,133 8.7% 14,831 9.9% Maintenance of equipment 16,951
12.1% 18,232 12.2% Diesel fuel sold to third parties 4,304 3.1%
5,731 3.8% General and administrative 24,295 17.4% 25,160 16.9% Net
(gain)/loss on sale and impairment of assets (793) (0.6%) (3,891)
(2.6%) Gain on insurance recoveries 1 0.0% - 0.0% Depreciation and
amortization 12,637 9.0% 11,636 7.8% ------ --- ------ --- Total
operating expenses $112,440 80.4% $118,772 79.6% ======== ====
======== ==== GENESEE & WYOMING INC. AND SUBSIDIARIES SELECTED
CONSOLIDATED FINANCIAL INFORMATION (dollars in thousands)
(unaudited) Twelve Months Ended December 31,
------------------------------------ 2009 2008 ----------------
---------------- % of % of Amount Revenue Amount Revenue ------
------- ------ ------- Revenues: --------- Freight $333,711 61.2%
$369,937 61.5% Non-freight 211,155 38.8% 232,047 38.5% ------- ----
------- ---- Total revenues $544,866 100.0% $601,984 100.0%
======== ===== ======== ===== Operating Expense Comparison:
----------------------------- Natural Classification
---------------------- Labor and benefits $191,479 35.1% $191,108
31.7% Equipment rents 29,272 5.4% 35,170 5.8% Purchased services
42,435 7.8% 46,169 7.7% Depreciation and amortization 48,110 8.8%
40,507 6.7% Diesel fuel used in operations 33,538 6.2% 61,013 10.1%
Diesel fuel sold to third parties 14,400 2.7% 34,624 5.8%
Casualties and insurance 14,842 2.7% 15,136 2.5% Materials 21,835
4.0% 26,138 4.3% Net (gain)/loss on sale and impairment of assets
3,953 0.7% (7,708) (1.2%) Gain on insurance recoveries (3,143)
(0.6%) (399) (0.1%) Restructuring charges 2,288 0.4% - 0.0% Other
expenses 46,535 8.6% 44,295 7.4% ------ --- ------ --- Total
operating expenses $445,544 81.8% $486,053 80.7% ======== ====
======== ==== Functional Classification -------------------------
Transportation $167,413 30.8% $199,702 33.1% Maintenance of ways
and structures 51,713 9.5% 53,529 8.9% Maintenance of equipment
66,655 12.2% 72,186 12.0% Diesel fuel sold to third parties 14,400
2.7% 34,624 5.8% General and administrative 94,155 17.3% 93,612
15.5% Net (gain)/loss on sale and impairment of assets 3,953 0.7%
(7,708) (1.2%) Gain on insurance recoveries (3,143) (0.6%) (399)
(0.1%) Restructuring charges 2,288 0.4% - 0.0% Depreciation and
amortization 48,110 8.8% 40,507 6.7% ------ --- ------ --- Total
operating expenses $445,544 81.8% $486,053 80.7% ======== ====
======== ==== GENESEE & WYOMING INC. AND SUBSIDIARIES RAILROAD
FREIGHT REVENUES, CARLOADS AND AVERAGE REVENUES PER CARLOAD
COMPARISON BY COMMODITY GROUP (dollars in thousands, except average
revenues per carload) (unaudited) Three Months Ended Three Months
Ended December 31, 2009 December 31, 2008
-------------------------- -------------------------- Average
Average Revenues Revenues Freight Per Freight Per Commodity Group
Revenues Carloads Carload Revenues Carloads Carload --------
-------- ------- -------- -------- ------- Coal, Coke & Ores
$16,982 46,892 $362 $22,171 58,490 $379 Pulp & Paper 12,542
20,869 601 16,362 27,988 585 Minerals & Stone 10,484 31,969 328
11,217 37,500 299 Farm & Food Products 8,886 17,628 504 9,720
21,903 444 Chemicals-Plastics 8,469 12,079 701 8,417 12,328 683
Metals 7,493 15,424 486 9,353 19,206 487 Lumber & Forest
Products 6,171 14,518 425 7,257 16,486 440 Petroleum Products 5,158
7,233 713 4,873 7,123 684 Autos & Auto Parts 1,484 2,352 631
1,109 1,912 580 Other 4,420 18,507 239 4,709 21,872 215 -------
------- ------- ------- Totals $82,089 187,471 $438 $95,188 224,808
$423 ======= ======= ======= ======= GENESEE & WYOMING INC. AND
SUBSIDIARIES RAILROAD FREIGHT REVENUES, CARLOADS AND AVERAGE
REVENUES PER CARLOAD COMPARISON BY COMMODITY GROUP (dollars in
thousands, except average revenues per carload) (unaudited) Twelve
Months Ended Twelve Months Ended December 31, 2009 December 31,
2008 -------------------------- -------------------------- Average
Average Revenues Revenues Freight Per Freight Per Commodity Group
Revenues Carloads Carload Revenues Carloads Carload --------
-------- ------- -------- -------- ------- Coal, Coke & Ores
$70,944 197,164 $360 $71,628 193,703 $370 Pulp & Paper 50,882
89,217 570 72,353 119,613 605 Minerals & Stone 40,031 134,999
297 45,126 143,991 313 Farm & Food Products 37,489 83,299 450
39,011 73,432 531 Metals 33,137 68,410 484 42,076 84,817 496
Chemicals-Plastics 32,956 49,008 672 32,538 48,501 671 Lumber &
Forest Products 27,181 61,245 444 33,215 74,665 445 Petroleum
Products 19,804 28,553 694 18,503 27,344 677 Autos & Auto Parts
4,967 8,036 618 6,731 11,112 606 Other 16,320 67,255 243 8,756
37,666 232 -------- ------- -------- ------- Totals $333,711
787,186 $424 $369,937 814,844 $454 ======== ======= ========
======= Reconciliation of non-GAAP Financial Measures This earnings
release contains adjusted operating ratios and free cash flow,
which are "non-GAAP financial measures" as this term is defined in
Regulation G of the Securities Exchange Act of 1934. In accordance
with Regulation G, GWI has reconciled these non-GAAP financial
measures to its most directly comparable U.S. GAAP measure.
Adjusted Operating Ratios Description and Discussion Management
views its Operating Ratio, calculated as total Operating Expenses
divided by total Revenues, as an important measure of GWI's
operating performance. Because management believes this is useful
for investors in assessing GWI's financial results compared with
the same period in the prior year, the Adjusted Operating Ratio for
the three months ended December 31, 2009, is presented excluding
net gain on sale of assets and for the three months ended December
31, 2008, is presented excluding net gain on the sale of assets and
acquisition-related expense. The Adjusted Operating Ratios
presented excluding these effects are not intended to represent,
and should not be considered more meaningful than, or as an
alternative to, the Operating Ratios calculated using amounts in
accordance with GAAP. The following table sets forth a
reconciliation of GWI's Operating Ratios calculated using amounts
determined in accordance with GAAP to the Adjusted Operating Ratios
described above for the three months ended December 31, 2009 and
2008 ($ in millions): Total Total Operating Operating Operating
2009 Revenues Expenses Income Ratio -------- -------- ------ -----
As Reported $139.9 $112.4 $27.5 80.4% Net gain on sale of assets -
0.8 (0.8) --- --- --- Adjusted $139.9 $113.2 $26.7 80.9% ======
====== ===== ==== Total Total Operating Operating Operating 2008
Revenues Expenses Income Ratio -------- -------- ------ ----- As
Reported $149.2 $118.8 $30.4 79.6% Net gain on sale of assets - 3.9
(3.9) Acquisition-related expense - (2.0) 2.0 --- --- --- Adjusted
$149.2 $120.6 $28.5 80.9% ====== ====== ===== ==== Free Cash Flow
Description and Discussion Management views Free Cash Flow as an
important financial measure of how well GWI is managing its assets.
Subject to the limitations discussed below, Free Cash Flow is a
useful indicator of cash flow that may be available for
discretionary use by GWI. Free Cash Flow is defined as Net Cash
Provided by Operating Activities from Continuing Operations less
Net Cash Used in Investing Activities from Continuing Operations,
excluding the cost of acquisitions and proceeds from divestitures
and contingent consideration held in escrow. Key limitations of the
Free Cash Flow measure include the assumptions that GWI will be
able to refinance its existing debt when it matures and meet other
cash flow obligations from financing activities, such as principal
payments on debt. Free Cash Flow is not intended to represent, and
should not be considered more meaningful than, or as an alternative
to, measures of cash flow determined in accordance with GAAP. The
following table sets forth a reconciliation of GWI's Net Cash
Provided by Operating Activities from Continuing Operations to
GWI's Free Cash Flow ($ in millions): Year Ended December 31, 2009
2008 ---- ---- Net cash provided by operating activities from
continuing operations $126.9 $128.7 Net cash used in investing
activities from continuing operations (58.3) (413.8) Net cash
paid/(received) for acquisitions/divestitures 6.4 345.5 Contingent
consideration held in escrow - 7.5 --- --- Free cash flow $75.0
$67.9 ===== ===== DATASOURCE: Genesee & Wyoming Inc. CONTACT:
Michael Williams of GWI Corporate Communications, +1-203-629-3722,
Web Site: http://www.gwrr.com/
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