Thursday, July 29, 2010

RailAmerica revenue up 18% in quarter

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Jacskonville, Fla.-based RailAmerica, Inc. reported late Wednesday that its second-quarter 2010 revenue increased 18% to $117.3 million from $99.7 million. With carloads up 11%, freight revenue increased 17% to $96.5 million. Non-freight revenue rose 22% to $20.8 million.

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Including charges totaling $8.5 million after tax, or $0.15 per share, for the early retirement of debt and interest rate swap termination costs, RailAmerica reported a second-quarter 2010 loss from continuing operations of $4.6 million, or $0.08 per diluted share.

John Giles, RailAmerica’s president and CEO, said: “During the second quarter, we made progress on each of our strategic priorities of organic growth, balance sheet strength, and external growth. Our solid operating performance was driven by significantly higher revenue and further improvements in our underlying cost structure. Despite higher fuel prices, operating income was up 20% versus a year ago excluding theimpact of 45G tax credit monetization recognized in the second quarter of 2009. Late in the second quarter of 2010 we redeemed an additional $74 million of our senior notes, further strengthening our balance sheet. With the acquisition of Atlas Railroad Construction Company early in the third quarter, we expanded our presence in growing rail-related markets.”