Thursday, April 26, 2012

RailAmerica: Operating income up 57%

Written by  Luther S. Miller, Senior Consulting Editor

RailAmerica, Inc. reported late Wednesday that first-quarter revenue increased 15% to $143.4 million from $124.9 million in the first quarter last year. 2011. Freight revenue increased 10% to $107.8 million with average revenue per car up 7% and carloads up 3%. Non-freight revenue increased 30% to $35.6 million.

"Our positive momentum continues to build as reflected in our record first-quarter revenue and operating income excluding 45G benefits and asset sales," RailAmerica President and Chief Executive Officer John Giles said. "On a comparable basis, operating income was up 57% as we leveraged strong revenue growth and productivity gains. During the quarter, we completed our senior notes tender/refinancing, which will reduce our interest expense sharply while providing additional financial flexibility."

He said RailAmerica remains active "in the corporate development area, closing on the Wellsboro & Corning and its affiliated transload operations, TransRail North America, investment in early April. We expect to close on the Marquette Railroad acquisition in May, and our pipeline of additional opportunities remains promising."

RailAmerica reported a first-quarter 2012 net loss of $40.2 million, or 80 cents per diluted share, including $51.9 million after tax, or $1.03 per diluted share, of refinancing charges. This compares to net income of $4.1 million, or 7 cents per diluted share, in the first quarter of 2011. The company had adjusted net income of $13.0 million and $6.4 million for the first quarters of 2012 and 2011, respectively.