(RailAmerica issued the following news release on November 20.)
BOCA RATON, Fla. — RailAmerica, Inc. today reported its freight carloads for the month ended October 31, 2006.
Total carloads for October 2006 were 102,031, down 10,103 carloads, or 9.0%, from 112,134 in October 2005. The sale of the San Luis and Rio Grande Railroad, the E&N Railway and the three Alberta properties accounted for a decrease of 4,903 carloads. On a “same railroad” basis, October 2006 carloads decreased 5,200 carloads, or 4.8%, from 107,231 in October 2005. The October 2006 carloads were primarily affected by lower shipments of lumber and forest products, coal, minerals, and autos. Lumber and forest products carloads were impacted by the continued slow down in the housing market.
For the ten months ended October 31, 2006, total carloads decreased 3.6% to 1,048,913 from 1,088,096 in 2005. On a “same railroad” basis for the same period, carloads were 1,021,500, down 1.9% from 1,041,137 in 2005. “Same railroad” totals exclude carloads associated with railroads, or portions of railroads, sold or acquired by the Company after January 1, 2005.
Historically, the Company has found that carload information may be indicative of freight revenue on its railroads, but may not be indicative of total revenue, operating expenses, operating income or net income. Attached is a comparison of carloads by commodity group for the periods ended October 31, 2006 and 2005.
The Company also announced that, in light of its announcement on November 15, 2006, of its agreement to be acquired by an affiliate of Fortress Investment Group LLC, it will discontinue providing monthly carload announcements.
RailAmerica, Inc. (NYSE:RRA) is a leading short line and regional rail service provider with 42 railroads operating approximately 7,800 track miles in the United States and Canada. The Company is a member of the Russell 2000® Index. Its website may be found at http://www.railamerica.com.