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Rail News Home Financials

2/15/2006



Rail News: Financials

Florida East Coast Railway sets full-year operating ratio record, registers revenue and profit gains



Yesterday, Florida East Coast Industries (FECI) reported a record full-year operating ratio for Florida East Coast Railway L.L.C. (FECR) at 73.2, a 3.2-point improvement compared with 2004. In addition, the 351-mile regional’s 2005 revenue totaling $237.9 million increased 18 percent and operating profit of $63.7 million rose 35 percent.

However, the railroad’s 2005 operating expenses totaling $174.1 million increased 13 percent compared with 2004.

“While operating costs have increased as a result of higher fuel prices, to date we have been able to offset these increased expenses through the management of fuel surcharges and by advanced purchases of fuel,” said FECI Chairman, President and Chief Executive Officer Adolfo Henriques in a prepared statement. “The full-year operating ratio… reflects our continued focus on the management of expenses.”

During the fourth quarter, FECR generated revenue of $62.5 million, a 12 percent increase compared with fourth-quarter 2004. Operating profit of $16.3 million rose 3.5 percent and the railroad’s operating ratio of 74.0 improved 2.2 points. Quarterly operating expenses of $46.3 million increased 15 percent compared with the same 2004 period.

“Despite the impact of Hurricane Wilma, railway revenues increased 12 percent against a very strong period last year when the Florida economy was rebounding from the three hurricanes it suffered in September 2004,” said Henriques.

Looking ahead, FECI officials expect the railroad’s full-year 2006 revenue to range between $252 million and $262 million, increasing between 6 percent and 10 percent compared with 2005. Operating profit will range between $70 million and $73 million, a 10 percent to 15 percent rise. Capital expenditures will total about $53 million, including $14 million to purchase four locomotives and build an additional 11 miles of sidings between Indian River and Frontenac.


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