(Source: RailAmerica press release, October 11, 2012)
JACKSONVILLE, Fla. — On October 1, 2012, RailAmerica, Inc. (RailAmerica) was acquired by Genesee & Wyoming Inc. (GWI) and simultaneously deregistered its common stock and delisted from the New York Stock Exchange. Immediately following the closing of the acquisition, control of RailAmerica was placed into a voting trust with R. Lawrence McCaffrey appointed as trustee. The trust will remain in effect until the U.S. Surface Transportation Board (STB) issues its decision on GWI’s application to control RailAmerica and its railroads, which decision could be as early as the fourth quarter of 2012 or as late as the first quarter of 2013.
For the pendency of the trust, GWI will account for its ownership of RailAmerica under the equity method of accounting and RailAmerica will continue to report its carloadings independent of those of GWI. RailAmerica carloadings for September 2012 and for the third quarter of 2012 are for periods that GWI did not own RailAmerica and therefore will not be included in GWI’s carloadings and financial results for such periods. This press release will be posted on RailAmerica’s website http://www.railamerica.com/.
RailAmerica today reported that its total freight carloads for the month ended September 30, 2012 were 67,111, up 2.4% from 65,551 in September 2011.
The Company increased shipments in September 2012 in seven out of twelve commodity groups compared to September 2011. The largest increases were in Coal, Agricultural Products and Other. Coal volumes increased primarily due to greater shipment volumes in the Central region. Agricultural Products increased primarily due to higher shipments in the West region resulting from increased soybean shipments, which were partially offset by lower corn and wheat volumes in other regions. Shipments in the Other category were up primarily due to increased volumes in the Northeast and Southeast regions. The Other category includes crude oil, which accounted for a large portion of the increase compared to September 2011.
The largest declines were in Metallic Ores and Metals, Pulp, Paper & Allied Products and Food or Kindred Products. Metallic Ores and Metals shipments declined primarily due to reduced metals shipments in the Northeast region. Pulp, Paper & Allied Products decreased primarily due to lower shipments in the Northeast, Central and Southeast regions. Food or Kindred Products declined primarily due to lower volumes in the West region.
September 2012 carloads include 1,323 carloads from acquisitions. On a “same railroad” basis, carloads increased 0.4%.
RailAmerica, Inc. owns and operates short-line and regional freight railroads in North America, operating a portfolio of 45 individual railroads with approximately 7,500 miles of track in 28 U.S. states and three Canadian provinces.