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Rail News Home Financials

10/31/2006



Rail News: Financials

RailAmerica registers revenue, income gains despite traffic losses in third quarter



During the third quarter, RailAmerica Inc.’s revenue increased 12 percent to $117.3 million and operating income rose 7 percent to $13.5 million compared with similar 2005 data.

However, the short-line holding company’s quarterly net income of $6.9 million fell 10 percent, earnings from continuing operations of $7 million dropped 8 percent and operating ratio of 88.5 worsened 0.7 points. In addition, “same railroad” carloads — which exclude carloads associated with railroads or portions of railroads sold or acquired after Jan. 1, 2005 — decreased 2 percent compared with third-quarter 2005.

“Despite declines in our carloads, caused in significant part by the slowdown in the housing market — which resulted in a 12 percent decline in our lumber carloads — and the continued work stoppage at a paper facility in Nova Scotia … we continued to improve our operating results,” said RailAmerica Chief Executive Officer Charles Swinburn in a prepared statement.

During 2006’s first nine months, the company’s revenue totaled $348.5 million, up 13 percent compared with similar 2005 data. But operating income fell slightly to $36.9 million and RailAmerica’s operating ratio worsened 1.4 points to 89.4.

RailAmerica owns 42 regionals and short lines in the United States and Canada.


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