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Genesee & Wyoming reports Q4 2008

By: | at 07:00 PM | Channel(s): Intermodal  

Genesee & Wyoming Inc. (GWI) reported net income in the fourth quarter of 2008 of $25.3 million, compared with net income of $13.9 million in the fourth quarter of 2007. GWI’s diluted earnings per share (EPS) in the fourth quarter of 2008 were $0.70 with 36.4 million weighted average shares outstanding, compared with diluted EPS of $0.39 with 35.9 million weighted average shares outstanding in the fourth quarter of 2007.

GWI’s income from continuing operations in the fourth quarter of 2008 was $25.3 million, or $0.70 per diluted share, compared with income from continuing operations of $14.5 million, or $0.40 per diluted share in the fourth quarter of 2007.

In the fourth quarter of 2008, GWI’s results included a tax benefit of $6.5 million, or $0.18 per diluted share, for the retroactive impact of the extension of the US short line tax credit for the first nine months of 2008. Also in the fourth quarter of 2008, GWI received a net tax benefit of $2.8 million (or $0.08 per diluted share), with $4.8 million related to the impact of acquisitions on GWI’s consolidated US tax position, partially offset by deferred tax valuation allowances of $2.0 million in Australia and Canada. In the fourth quarter of 2007, GWI received a tax benefit of $0.6 million (or $0.02 per diluted share) due to a change in Canadian tax laws.

GWI’s 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) and $2.0 million of acquisition-related expenses ($1.3 million after-tax, or $0.03 per diluted share), compared with gains on the sale of assets of $0.8 million ($0.5 million after-tax, or $0.01 per diluted share) and acquisition-related expenses of $0.7 million ($0.4 million after tax, or $0.01 per diluted share) in the fourth quarter of 2007.

In the fourth quarter of 2008, GWI’s revenues increased $14.6 million, or 10.9%, to $149.2 million, compared with $134.5 million in the fourth quarter of 2007. Of the revenue increase, $26.3 million was from acquisitions offset by a decrease of $11.7 million in same railroad revenues. The same railroad revenue decrease was composed of $7.2 million due to the depreciation of the Australian and Canadian dollars and $3.5 million due to a decline in revenues from third-party fuel sales. Excluding currency and fuel sales, GWI’s same railroad revenues declined $1.0 million.

Freight revenues in the fourth quarter of 2008 increased by $13.1 million, or 15.9%, to $95.2 million, compared with $82.1 million in the fourth quarter of 2007. Of the freight revenue increase, $19.8 million was from acquisitions offset by a decrease of $6.7 million in same railroad freight revenues. Same railroad freight revenues were reduced $3.9 million by the depreciation of the Australian and Canadian dollars. Excluding currency, GWI’s same railroad freight revenues decreased by $2.8 million.

GWI’s traffic in the fourth quarter of 2008 increased 32,949 carloads, or 17.2%, compared with the fourth quarter of 2007. Same-railroad traffic decreased by 16,814 carloads, or 8.8%. The decrease was principally due to declines of 6,286 carloads of metals traffic, 5,007 carloads of coal, coke & ores traffic, 3,903 carloads of lumber & forest products traffic and 3,712 carloads of pulp & paper traffic. The decline in fourth quarter 2008 coal, coke & ores traffic was primarily due to reduced shipments in GWI’s Rocky Mountain Region where a mine closed in February 2008.

Average freight revenues per carload declined 1.1% in the fourth quarter of 2008. The impact of acquisitions and the depreciation of the Canadian and Australian dollars reduced average freight revenues per carload by 2.9% and 4.1%, respectively. Excluding currency, same railroad average revenues per carload increased 5.9% in the fourth quarter of 2008.

GWI’s non-freight revenues in the fourth quarter of 2008 increased $1.6 million, or 3.0%, compared with the fourth quarter of 2007. Of the non-freight revenue increase, $6.5 million was from acquisitions offset by a decreas