(The Associated Press circulated the following article on February 16.)
BOCA RATON, Fla. — RailAmerica Inc. on Wednesday said earnings rose sharply in the fourth quarter from the year-ago period, which was weighed down by a tax-related charge and a loss from discontinued operations.
Quarterly income jumped to $4.3 million, or 11 cents per share, from $1.4 million, or 5 cents, in the year-ago period. Income from ongoing business was $4.5 million, or 12 cents per share, down from $4.8 million, or 15 cents, the year before. The year-ago period included a charge of 5 cents per share related to the December 2003 change in the tax rate in Ontario, Canada.
RailAmerica’s results just missed the mean estimate of 13 cents from analysts polled by Thomson First Call.
Revenue for the period was $103.5 million, a gain of 12 percent from $92.5 million a year earlier. For comparable railroad lines, revenue increased 4.5 percent, the company said.
In the latest quarter, RailAmerica said its operating expenses were 23 percent greater at $91.1 million, as the average price of fuel soared to $1.62 per gallon from 98 cents the year before.
The company, however, dropped to a full-year loss of $25.9 million, or 74 cents per share, from income of $14.7 million, or 46 cents, in 2003. After excluding refinancing costs, adjusted earnings were $19.8 million, or 57 cents per share, in 2004. Yearly revenue gained 12 percent to $395.6 million.
Analysts expected a profit of 58 cents per share and revenue of $393.5 million.
Looking forward, RailAmerica backed its first-quarter forecast for earnings of 16 cents to 19 cents per share and its yearly estimate of 94 cents to $1.02 per share. Currently, analysts see quarterly income of 17 cents per share, and a profit of $1 per share for the year.
RailAmerica earned 14 cents per share on revenue of $97 million in last year’s first quarter.