(Source: Genesee & Wyoming press release, May 1, 2012)
GREENWICH, Conn. — Genesee & Wyoming Inc. (GWI) reported net income in the first quarter of 2012 of $22.2 million, compared with net income of $22.1 million in the first quarter of 2011. GWI’s diluted earnings per share (EPS) in the first quarter of 2012 were $0.52 with 43.1 million weighted average shares outstanding, compared with diluted EPS of $0.52 with 42.5 million weighted average shares outstanding in the first quarter of 2011.
GWI’s effective tax rate was 35.6% in the first quarter of 2012, as compared to 27.7% in the first quarter of 2011. The higher tax rate in the first quarter of the current year was driven primarily by the expiration of the Short Line Tax Credit on December 31, 2011.
Results from Continuing Operations
In the first quarter of 2012, GWI’s total operating revenues increased $15.5 million, or 8.1%, to $207.4 million, compared with $191.9 million in the first quarter of 2011. The increase included $6.7 million in revenues from new operations and an $8.8 million, or 4.6%, increase in same railroad operating revenues. Same railroad operating revenues were negatively impacted by an estimated $7 million from the Edith River Bridge closure and by approximately $5 million from lower coal and coal-related haulage traffic. During the first quarter of 2012, the net appreciation of foreign currencies increased same railroad operating revenues by $2.3 million. Excluding the net impact from foreign currency, GWI’s same railroad operating revenues increased $6.5 million, or 3.4%.
Same railroad freight revenues in the first quarter of 2012 increased by $5.4 million, or 4.1%, to $138.2 million, compared with $132.8 million in the first quarter of 2011. Excluding a $1.9 million increase from the net impact of foreign currency appreciation, GWI’s same railroad freight revenues increased by $3.6 million, or 2.7%.
GWI’s traffic in the first quarter of 2012 was 222,178 carloads, a decrease of 22,378 carloads, or 9.2%, compared with the first quarter of 2011. Traffic in the first quarter of 2012 included 4,785 carloads from new operations. Same railroad traffic decreased 27,163 carloads, or 11.1%, in the first quarter of 2012. The same railroad traffic decrease was principally due to decreases of 22,205 carloads of coal traffic and 8,638 carloads of other commodity traffic, primarily related to coal haulage, partially offset by an increase of 3,188 carloads of metals traffic. All remaining traffic increased by a net 492 carloads.
Average same railroad freight revenues per carload increased 17.1% in the first quarter of 2012. The net appreciation of the Australian and Canadian dollars versus the U.S. dollar, higher fuel surcharges and changes in commodity mix increased average revenues per carload by 1.7%, 1.7% and 3.8%, respectively. Other than these factors, same railroad average freight revenues per carload increased 9.9%. Average freight revenues per carload were impacted by changes in the mix of customers within certain commodity groups, primarily coal, metals and other commodities.
GWI’s same railroad non-freight revenues in the first quarter of 2012 increased by $3.4 million, or 5.7%, to $62.5 million compared with $59.1 million in the first quarter of 2011. Excluding a $0.5 million increase from the net impact from foreign currency appreciation, GWI’s same railroad non-freight revenues increased by $2.9 million, or 5.0%, primarily due to higher railcar switching revenues in Europe, Australia and Canada.
GWI’s operating income in the first quarter of 2012 was $41.3 million, an increase of $2.1 million, compared with $39.2 million in the first quarter of 2011. The estimated impact of the Edith River Bridge outage in the Northern Territory of Australia was a net reduction in operating income of $5 million in the first quarter of 2012. The decline in coal and coal haulage traffic reduced operating income in the first quarter of 2012 by approximately $3 million.
About Genesee & Wyoming Inc.
GWI owns and operates short line and regional freight railroads and provides railcar switching services in the United States, Australia, Canada, the Netherlands and Belgium. In addition, we operate the Tarcoola to Darwin rail line, which links the Port of Darwin with the Australian interstate rail network in South Australia. Operations currently include 65 railroads organized in 10 regions, with more than 7,600 miles of owned and leased track and approximately 1,400 additional miles under track access arrangements. We provide rail service at 17 ports in North America and Europe and perform contract coal loading and railcar switching for industrial customers.