Wednesday, July 25, 2012

RailAmerica 2Q profit rises on higher revenue

Written by  Luther S. Miller, Senior Consulting Editor

RailAmerica, Inc. has reported second-quarter 2012 net income of $11.4 million, or 23 cents per diluted share, compared to net income of $8.7 million, or 17 cents per diluted share, in the second quarter of 2011.

Second-quarter revenue increased 12% to $156.1 million from $139.2 million in the second quarter of 2011. Freight revenue rose 8% to $113.6 million. Non-freight revenue increased 26% to $42.5 million.

The company said "noteworthy items" impacting the second quarters of 2012 and 2011 include early retirement of debt. Second-quarter 2012 included $5.7 million of charges related to redemption of the remaining $74 million of 9.25% senior notes.

RailAmerica President and Chief Executive Officer John Giles said: "Exceptional execution by our team drove another strong quarter with operating income on a comparable basis up 28%. We remain well positioned for continued progress in the months ahead. During the second quarter we began integrating our two recent acquisitions. Additionally, our commercial and industrial development teams are pursuing a robust pipeline of opportunities."

Genesee & Wyoming Inc. announced Monday that it had entered into an agreement to acquire RailAmerica in a transaction valued at around $1.4 billion.