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Genesee & Wyoming Reports Results for the Fourth Quarter of 2016
Genesee & Wyoming Inc. (G&W) (NYSE:GWR)
Fourth Quarter Consolidated Highlights
-
Completed the acquisition of Providence and Worcester Railroad Company
(P&W), a Class III regional freight railroad operating in
Massachusetts, Rhode Island, Connecticut and New York, on November 1,
2016.
-
Completed the acquisition of Glencore Rail (NSW) Pty Limited (GRail),
the third largest coal haulage business in Australia, and concurrently
issued a 48.9% equity stake in G&W’s Australian subsidiary, G&W
Australia Holdings LP (GWA), the holding company for all of G&W's
Australian businesses, to Macquarie Infrastructure and Real Assets
(MIRA) on December 1, 2016.
-
Announced agreement to purchase Pentalver Transport Limited
(Pentalver), a U.K. based maritime container terminal and
transportation business, on December 12, 2016.
-
Completed 4,000,000 share offering of Class A Common Stock at $75.00
per share on December 13, 2016. The offering increased G&W's weighted
average shares outstanding in the fourth quarter by approximately
522,000 shares, which reduced G&W's diluted earnings per common share
(EPS) by approximately $0.01.
-
Recorded impairment and related charges of $32.0 million in
U.K./Europe in the fourth quarter of 2016 in conjunction with G&W’s
annual assessment of goodwill combined with previously discussed
efforts to address challenges with the U.K. coal and European
intermodal businesses.
-
Operating revenues increased 0.3% to $516.5 million from $514.9
million, including the recognition of $10.0 million of revenues from a
multi-year take-or-pay volume shortfall under a crude-by-rail contract.
-
Same railroad operating revenues, excluding a $19.4 million negative
impact of foreign currency depreciation, increased 1.8%, including the
revenue from the take-or-pay contract.(1)
-
Reported operating income decreased 43.4% to $53.6 million; Adjusted
operating income increased 10.9% to $104.5 million.(2)
-
Reported diluted EPS attributable to G&W decreased from $1.47 to
$0.15; Adjusted diluted EPS attributable to G&W increased 1% to $0.99.(2)
-
The decrease in reported diluted EPS was primarily due to a $0.52
impact from U.K./Europe impairment and related charges in the
fourth quarter of 2016 and $0.28 of corporate development and
related costs in the fourth quarter of 2016, primarily associated
with the GRail, P&W and Pentalver transactions, as well as a $0.34
impact from the full year 2015 Short Line Tax Credit being
included in the fourth quarter of 2015 and a $0.17 impact from a
reduction in U.K. tax rates in the fourth quarter of 2015,
partially offset by a $0.10 benefit recognized in 2016 from a
multi-year take-or-pay contract.
Fourth Quarter Segment Highlights
-
North America: Operating revenues from G&W's North American Operations
increased 7.9% to $322.2 million from $298.6 million, primarily due to
a $17.6 million increase in freight-related revenues, as well as $5.2
million of revenues from new operations. Freight-related revenues in
the fourth quarter of 2016 included the recognition of $10.0 million
of revenues from a multi-year take-or-pay volume shortfall under a
crude-by-rail contract. Reported operating income from G&W's North
American Operations increased 13.9% to $83.4 million; Adjusted
operating income from G&W's North American Operations increased 18.9%
to $88.1 million.(2)
-
Australia: Operating revenues from G&W's Australian Operations
increased 11.2% to $61.4 million from $55.2 million, primarily due to
new operations. Reported operating income from G&W's Australian
Operations decreased from $10.5 million to $2.8 million, primarily due
to the loss of the Southern Iron Ore fixed payment and corporate
development and related costs associated with the GRail transaction;
Adjusted operating income from G&W's Australian Operations increased
26.4% from $11.0 million to $13.9 million.(2)
-
U.K./Europe: Operating revenues from G&W's U.K./European Operations
decreased 17.4% to $133.0 million from $161.0 million, or 4.5%
excluding a $21.7 million impact from foreign currency depreciation,
primarily due to port congestion at certain U.K. ports, as well as
lower Continental Europe intermodal volumes. Reported operating loss
from G&W's U.K./European Operations was $32.6 million, compared with
operating income of $10.9 million last year. The operating loss in the
U.K./Europe primarily resulted from impairment and related charges of
$32.0 million, including $21.5 million of charges related to ERS
Railways (ERS) and $10.5 million of charges related to leases of idle
excess U.K. coal railcars; Adjusted operating income from G&W's
U.K./European Operations decreased from $9.1 million to $2.5 million.(1)(2)
Comments on Fourth Quarter
Jack Hellmann, President and CEO of G&W, commented, “The fourth quarter
of 2016 was extraordinarily active at G&W as we closed on the
acquisition of GRail in Australia, we closed on the acquisition of the
P&W in the United States, we signed an agreement to acquire Pentalver in
the U.K., and we raised $287 million of equity to position ourselves for
additional acquisition and investment opportunities. Our reported
diluted EPS for the fourth quarter of 2016 were $0.15 which included
expenses related to the above transactions as well as impairment and
related charges in the U.K./Europe. At the same time, our adjusted
diluted EPS of $0.99 included a $0.10 diluted EPS benefit from a
multi-year take-or-pay contract. Excluding this benefit, our fourth
quarter results were consistent with our outlook as our business
performed as expected.” (2)
“In North America, a modest increase in same railroad traffic of 2% and
good expense management at each of our eight operating regions resulted
in 14% growth in operating income in the fourth quarter of 2016, or 5%
excluding the take-or-pay contract and corporate development costs. We
held the shares of the newly-acquired P&W in a voting trust for November
and December and, upon receipt of Surface Transportation Board approval,
the P&W came out of trust on December 31st and our
integration team has completed a series of initiatives that are
consistent with our acquisition plan.”(2)
“In Australia, the fourth quarter of 2016 was a transition period that
included two months of 100% G&W ownership and one month of 51% G&W
ownership following the December 1st formation of our partnership with
MIRA and the concurrent acquisition of GRail. The transition has been
smooth and our Australian operations performed as expected throughout
the fourth quarter. With improving commodity prices, a record harvest in
South Australia and our expanded presence in the Hunter Valley coal
supply chain, our outlook for Australia is promising as we enter 2017.”
“In the U.K./Europe, our financial results continued to underperform in
the fourth quarter of 2016, although we expect significant improvement
as 2017 unfolds, led by the U.K. and Poland. In the fourth quarter, the
efficiency of our U.K. intermodal operations suffered due to congestion
and irregular shipping patterns in the ports which masked positive
changes to the cost structure of our U.K. heavy haul business. Also in
the fourth quarter, we recorded impairment and related charges of US$32
million, which included US$10.5 million of charges related to leases of
idle U.K. coal railcars and US$21.5 million of charges related to our
ERS operations in Continental Europe. For context, at the time of
acquisition, ERS net assets represented approximately 1% of the
Freightliner acquisition price. By discontinuing most ERS routes and
dramatically shrinking the operations, we expect to bring our remaining
business on the continent (port switching and maritime intermodal) back
to profitability by mid-2017.”
“Meanwhile we continue to evaluate multiple acquisition and investment
opportunities across G&W’s global footprint and have over $500 million
of borrowing capacity under our revolving credit facility.”
Financial Results
G&W's operating revenues increased $1.7 million, or 0.3%, to $516.5
million, in the fourth quarter of 2016, compared with $514.9 million in
the fourth quarter of 2015. G&W's operating income in the fourth quarter
of 2016 was $53.6 million, compared with $94.6 million in the fourth
quarter of 2015. G&W's adjusted operating income in the fourth quarter
of 2016 was $104.5 million, compared with $94.2 million in the fourth
quarter of 2015.(2)
Reported net income attributable to G&W in the fourth quarter of 2016
was $8.9 million, compared with $84.9 million in the fourth quarter of
2015. Excluding the net impact of certain items affecting comparability
between periods as discussed below, adjusted net income attributable to
G&W in the fourth quarter of 2016 was $58.3 million, compared with $56.8
million in the fourth quarter of 2015.(2)
Reported diluted EPS attributable to G&W in the fourth quarter of 2016
were $0.15 with 58.8 million weighted average shares outstanding,
compared with reported diluted EPS in the fourth quarter of 2015 of
$1.47 with 57.9 million weighted average shares outstanding. Excluding
the net impact of certain items affecting comparability discussed below,
adjusted diluted EPS attributable to G&W in the fourth quarter of 2016
were $0.99 with 58.8 million weighted average shares outstanding,
compared with adjusted diluted EPS in the fourth quarter of 2015 of
$0.98 with 57.9 million weighted average shares outstanding.(2)
Impact of GRail Acquisition on G&W Financial Presentation
In conjunction with the GRail transaction that closed on December 1,
2016, G&W issued a 48.9% equity stake in GWA to MIRA and retained a
51.1% interest. G&W continues to consolidate 100% of GWA in its
financial statements and now reports a noncontrolling interest for
MIRA’s 48.9% equity ownership.
Also, prior to the GRail acquisition, G&W’s Australian Operations
provided freight-related services to GRail which were recorded as
freight-related revenues. These freight-related services continued post
acquisition, but are now eliminated in consolidation. Revenues from the
GRail acquisition are now included in G&W’s consolidated freight
revenues from new operations.
Items Affecting Comparability
In the fourth quarter of 2016 and 2015, G&W’s results included certain
items affecting comparability between the periods that are set forth in
the following table (in millions, except per share amounts).
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Income/(Loss)
Before Taxes
Impact
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After-Tax Net
Income/(Loss)
Attributable
to G&W
Impact
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Diluted EPS
Attributable
to G&W
Impact
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Three Months Ended December 31, 2016
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ERS impairment and related charges
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$
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(21.5
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)
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$
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(21.5
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)
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$
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(0.37
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)
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U.K. coal railcar leases
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$
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(10.5
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)
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$
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(8.6
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)
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$
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(0.15
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)
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Corporate development and related costs
|
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$
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(19.2
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)
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$
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(16.2
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)
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$
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(0.28
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)
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Net loss on sale and impairment of assets
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$
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(1.1
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)
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$
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(0.8
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)
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$
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(0.01
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)
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Restructuring costs
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$
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(1.9
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)
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$
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(1.4
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)
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$
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(0.02
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)
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Write-off of debt issuance costs
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$
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(2.2
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)
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$
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(0.8
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)
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$
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(0.01
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)
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Three Months Ended December 31, 2015
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Corporate development and related costs
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$
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(1.3
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)
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$
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(0.8
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)
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$
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(0.01
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)
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Net gain on sale of assets
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$
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0.3
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$
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0.2
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$
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—
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Freightliner acquisition/integration related costs
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$
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(1.2
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)
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$
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(0.9
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)
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$
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(0.02
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)
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Out of period benefit of final allocation of fair values to
Freightliner's
assets & liabilities
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$
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2.0
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$
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1.6
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$
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0.03
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Q1-Q3 2015 Short Line Tax Credit
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$
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—
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$
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19.7
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$
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0.34
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Impact of reduction in U.K. effective tax rate
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$
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—
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$
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9.7
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$
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0.17
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Application of full year effective tax rate to Q1 - Q3
2015
results
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$
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—
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$
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(1.3
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)
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$
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(0.02
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)
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In the fourth quarter of 2016, G&W’s results included U.K./Europe
impairment and related charges of $32.0 million, which included $21.5
million of charges related to ERS and $10.5 million of charges related
to leases of idle excess U.K. coal railcars. The fourth quarter of 2016
also included corporate development and related costs of $19.2 million,
primarily related to the GRail, P&W and Pentalver transactions,
write-off of debt issuance costs of $2.2 million related to the
termination of Australia's term loan as a result of the entry into a new
Australian credit facility in conjunction with the GRail acquisition,
restructuring costs of $1.9 million and net loss on the sale and
impairment of assets of $1.1 million.
In the fourth quarter of 2015, G&W finalized its allocation of fair
values to assets and liabilities associated with the acquisition of
Freightliner in March of 2015, which resulted in a decrease in operating
expenses of $3.9 million and an increase in interest expense of $1.0
million. Of the $3.9 million decrease in operating expenses and the $1.0
million increase in interest expense recorded in the fourth quarter of
2015, $2.6 million and $0.7 million, respectively, did not relate to
that period, but were included as adjustments to G&W's fourth quarter
2015 results. In the fourth quarter of 2015, G&W’s results also included
corporate development and related costs of $1.3 million, Freightliner
acquisition/integration costs of $1.2 million and net gain on the sale
of assets of $0.3 million.
In December 2015, the U.S. Short Line Tax Credit (which had previously
expired on December 31, 2014), was extended for fiscal years 2015 and
2016. In the fourth quarter of 2015, G&W recorded a full year tax
benefit of $27.4 million associated with the extension of the Short Line
Tax Credit, of which $19.7 million related to the first three quarters
of 2015, as well as an income tax benefit of $9.7 million associated
with a prospective change in U.K. tax rates enacted during the fourth
quarter of 2015. In addition, net income for the fourth quarter of 2015
was reduced by $1.3 million due to the application of the full year
effective income tax rate to the results of the first three quarters of
2015.
Fourth Quarter Results by Segment
Operating revenues from G&W's North American Operations increased $23.6
million, or 7.9%, to $322.2 million in the fourth quarter of 2016,
compared with $298.6 million in the fourth quarter of 2015. Excluding
$5.2 million of revenues from new operations, North American Operations
same railroad revenues increased by $18.3 million, or 6.1%, primarily
due to an increase in freight-related revenues. The increase in
freight-related revenues included $10.0 million of revenue recognized in
the fourth quarter of 2016 associated with a 4-year take-or-pay volume
commitment contract.
North American Operations traffic increased 14,711 carloads, or 3.8%, to
402,939 carloads in the fourth quarter of 2016. Excluding 6,389 carloads
from new operations, same railroad traffic increased 8,322 carloads, or
2.1%, in the fourth quarter of 2016 compared with the fourth quarter of
2015. The same railroad traffic increase was principally due to
increases of 10,054 carloads of coal and coke traffic (primarily in the
Midwest and Central regions), 4,146 carloads of metals traffic
(primarily in the Northeast and Midwest regions), 4,000 carloads of
agricultural products traffic (primarily in the Central, Mountain West
and Pacific regions), partially offset by decreases of 3,843 carloads of
pulp and paper traffic (primarily in the Southern, Northeast and Canada
regions), 3,020 carloads of minerals and stone traffic (primarily in the
Northeast and Coastal regions) and 2,918 carloads of other traffic
(primarily in the Canada, Central and Southern regions). All remaining
traffic decreased by a net 97 carloads.
Operating income from G&W's North American Operations in the fourth
quarter of 2016 was $83.4 million, compared with $73.2 million in the
fourth quarter of 2015. The operating ratio for North American
Operations was 74.1% in the fourth quarter of 2016, compared with an
operating ratio of 75.5% in the fourth quarter of 2015.
Operating revenues from G&W's Australian Operations increased $6.2
million, or 11.2%, to $61.4 million in the fourth quarter of 2016,
compared with $55.2 million in the fourth quarter of 2015. When
comparing our non-freight revenues from existing operations in the
fourth quarter of 2016 to our non-freight revenues in the fourth quarter
of 2015, note that the 2016 existing operations included $4.1 million of
revenue for services provided to GRail for the month of December 2016,
which were eliminated in G&W's consolidated freight-related revenues.
Excluding a net increase of $7.0 million of revenues from new operations
and a $2.3 million increase due to the impact of foreign currency
appreciation, Australian Operations same railroad revenues decreased by
$3.1 million, or 5.3%, primarily due to a decrease in freight-related
revenues resulting from the loss of the Southern Iron fixed fee payment.(1)
Australian Operations traffic increased 36,144 carloads, or 78.2%, to
82,389 carloads in the fourth quarter of 2016. Excluding 35,203 carloads
from new operations, same railroad traffic increased 941 carloads, or
2.0%, in the fourth quarter of 2016 compared with the fourth quarter of
2015.
Operating income from G&W's Australian Operations in the fourth quarter
of 2016 was $2.8 million, compared with $10.5 million in the fourth
quarter of 2015. The decrease in the Australian Operations operating
income was primarily due to $10.7 million of corporate development and
related costs in the fourth quarter of 2016 related to the GRail
acquisition. The operating ratio for Australian Operations was 95.4% in
the fourth quarter of 2016, compared with an operating ratio of 81.0% in
the fourth quarter of 2015.
Operating revenues from G&W's U.K./European Operations decreased $28.1
million, or 17.4% to $133.0 million in the fourth quarter of 2016,
compared with $161.0 million in the fourth quarter of 2015. Excluding a
$21.7 million decrease due to the impact of foreign currency
depreciation, operating revenues decreased $6.3 million, or 4.5%,
primarily due to a decrease in Continental Europe intermodal revenues
and U.K. coal revenues.(1)
U.K./European Operations traffic increased 5,562 carloads, or 2.0%, to
281,222 carloads in the fourth quarter of 2016. The traffic increase was
principally due to an increase of 9,446 carloads of intermodal traffic
(primarily in the U.K.), partially offset by a decrease of 4,183
carloads of coal and coke traffic (primarily in the U.K.).
Operating loss from G&W's U.K./European Operations in the fourth quarter
of 2016 was $32.6 million, compared with operating income of $10.9
million in the fourth quarter of 2015. The operating loss in the
U.K./Europe primarily resulted from impairment and related charges of
$32.0 million, including $21.5 million of charges related to our ERS
business and $10.5 million of charges related to leases of idle excess
U.K. coal railcars, as well as $1.8 million of restructuring expenses
and $1.3 million of corporate development expenses, primarily related to
the previously announced Pentalver acquisition.
Consolidated Annual Results
2016 Segment Highlights
-
North America: Operating revenues from G&W's North American Operations
decreased 0.4% to $1,236.8 million from $1,241.8 million. Reported
operating income from G&W's North American Operations increased 7.4%
to $319.6 million; Adjusted operating income from G&W's North American
Operations increased 5.2% to $327.4 million .(2)
-
Australia: Operating revenues from G&W's Australian Operations
decreased 8.4% to $222.6 million from $243.0 million. Reported
operating income from G&W's Australian Operations decreased 91.2% to
$4.8 million, primarily due to the loss of the Southern Iron Ore fixed
payment and corporate development and related costs associated with
the GRail transaction; Adjusted operating income from G&W's Australian
Operations decreased 27.4% to $41.8 million.(2)
-
U.K./Europe: Operating revenues from G&W's U.K./European Operations
increased 5.1% to $542.2 million from $515.6 million, or increased
15.8% excluding a $47.3 million impact from foreign currency
depreciation, primarily due to the full year of operation of
Freightliner in 2016 versus nine months in 2015. Reported operating
income from G&W's U.K./European Operations decreased from operating
income of $31.9 million to an operating loss of $34.7 million;
Adjusted operating income from G&W's U.K./European Operations
decreased 84.3% to $5.1 million.(1)(2)
Reported net income attributable to G&W for the year ended December 31,
2016 was $141.1 million ($215.5 million pre-tax), compared with $225.0
million ($300.9 million pre-tax) for the year ended December 31, 2015.
Excluding the impact of certain items affecting comparability listed
below, adjusted net income attributable to G&W for the year ended
December 31, 2016 was $212.4 million ($305.7 million adjusted pre-tax),
compared with $240.7 million ($339.0 million adjusted pre-tax) for the
year ended December 31, 2015.(2)
G&W’s diluted EPS for the year ended December 31, 2016 were $2.42 with
58.3 million weighted average shares outstanding, compared with diluted
EPS of $3.89 with 57.8 million weighted average shares outstanding for
the year ended December 31, 2015. Excluding certain items affecting
comparability listed below, G&W’s adjusted diluted EPS for the year
ended December 31, 2016 were $3.65 with 58.3 million weighted average
shares outstanding, compared with adjusted diluted EPS of $4.16 with
57.8 million weighted average shares outstanding for the year ended
December 31, 2015.(2)
G&W’s 2016 and 2015 annual results included certain items affecting
comparability between the periods that are set forth in the following
table (in millions, except per share amounts).
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Income/(Loss)
Before Taxes
Impact
|
|
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After-Tax Net
Income/(Loss)
Attributable
to G&W
Impact
|
|
|
Diluted EPS
Attributable
to G&W
Impact
|
|
Year Ended December 31, 2016
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|
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Corporate development and related costs
|
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$
|
(26.6
|
)
|
|
|
$
|
(21.4
|
)
|
|
|
$
|
(0.37
|
)
|
|
Net loss on sale and impairment of assets
|
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|
|
$
|
(0.1
|
)
|
|
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$
|
—
|
|
|
|
$
|
—
|
|
|
Australia impairment and related costs
|
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$
|
(21.1
|
)
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$
|
(16.8
|
)
|
|
|
$
|
(0.29
|
)
|
|
ERS impairment and related costs
|
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|
|
$
|
(21.5
|
)
|
|
|
$
|
(21.5
|
)
|
|
|
$
|
(0.37
|
)
|
|
U.K. coal railcar leases
|
|
|
|
$
|
(10.5
|
)
|
|
|
$
|
(8.6
|
)
|
|
|
$
|
(0.15
|
)
|
|
Restructuring costs
|
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|
|
$
|
(8.2
|
)
|
|
|
$
|
(6.5
|
)
|
|
|
$
|
(0.11
|
)
|
|
Write-off of debt issuance costs
|
|
|
|
$
|
(2.2
|
)
|
|
|
$
|
(0.8
|
)
|
|
|
$
|
(0.01
|
)
|
|
Impact of reduction in U.K. effective tax rate
|
|
|
|
$
|
—
|
|
|
|
$
|
4.3
|
|
|
|
$
|
0.07
|
|
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Year Ended December 31, 2015
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Corporate development and related costs
|
|
|
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$
|
(6.4
|
)
|
|
|
$
|
(4.3
|
)
|
|
|
$
|
(0.07
|
)
|
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Net gain on sale of assets
|
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$
|
2.3
|
|
|
|
$
|
1.7
|
|
|
|
$
|
0.03
|
|
|
Freightliner acquisition/integration related costs
|
|
|
|
$
|
(15.3
|
)
|
|
|
$
|
(11.2
|
)
|
|
|
$
|
(0.19
|
)
|
|
Loss on settlement of Freightliner acquisition-related
foreign
currency forward purchase contracts
|
|
|
|
$
|
(18.7
|
)
|
|
|
$
|
(11.6
|
)
|
|
|
$
|
(0.20
|
)
|
|
Impact of reduction in U.K. effective tax rate
|
|
|
|
$
|
—
|
|
|
|
$
|
9.7
|
|
|
|
$
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow (2)
G&W’s free cash flow for the twelve months ended December 31, 2016 and
2015 was as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
2016
|
|
|
2015
|
|
Net cash provided by operating activities
|
|
|
|
$
|
407.0
|
|
|
|
$
|
475.1
|
|
Net cash used in investing activities, excluding new business
investments
|
|
|
|
(1,110.5
|
)
|
|
|
(1,008.6
|
)
|
|
Net cash used for acquisitions (a)
|
|
|
|
987.3
|
|
|
|
792.2
|
|
|
Free cash flow before new business investments
|
|
|
|
283.8
|
|
|
|
258.7
|
|
|
New business investments
|
|
|
|
(24.5
|
)
|
|
|
(65.6
|
)
|
|
Free cash flow (2)
|
|
|
|
$
|
259.3
|
|
|
|
$
|
193.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
|
The 2016 period consisted primarily of net cash used for the
acquisitions of GRail and P&W as well as $17.8 million in cash paid
for incremental expenses related to the purchase and integration of
GRail, P&W and Freightliner. The 2015 period consisted primarily of
net cash used for the acquisition of Freightliner and Pinsly
Arkansas as well as $33.2 million in cash paid for incremental
expenses related to the purchase and integration of Freightliner.
|
|
|
|
|
|
Conference Call and Webcast Details
As previously announced, G&W’s conference call to discuss financial
results for the fourth quarter of 2016 will be held on Wednesday,
February 8, 2017, at 11 a.m. EST. The dial-in number for the
teleconference in the U.S. is (800) 230-1059; outside the U.S. is (612)
234-9959, or the call may be accessed live over the Internet (listen
only) at www.gwrr.com/investors.
Management will be referring to a slide presentation that will also be
available at gwrr.com/investors. The webcast will be archived at www.gwrr.com/investors
until the following quarter’s earnings press release. Telephone replay
is available for 30 days beginning at 1 p.m. EST on February 8, 2017 by
dialing (800) 475-6701 (or outside the U.S., dial 320-365-3844). The
access code is 405456.
About G&W
G&W owns or leases 122 freight railroads worldwide that are organized in
10 operating regions with approximately 7,300 employees and 3,000
customers.
-
G&W's eight North American regions serve 41 U.S. states and four
Canadian provinces and include 115 short line and regional freight
railroads, with more than 13,000 track-miles.
-
G&W's Australia Region provides rail freight services in New South
Wales, including in the Hunter Valley coal supply chain, and in the
Northern Territory and South Australia, including operating the
1,400-mile Tarcoola-to-Darwin rail line. As of December 1, 2016, G&W's
Australia Region was 51.1% owned by G&W and 48.9% owned by a
consortium of funds and clients managed by Macquarie Infrastructure
and Real Assets.
-
G&W's U.K./European Region is led by Freightliner, the U.K.'s largest
rail maritime intermodal operator and second-largest rail freight
company. Operations also include heavy-haul in Poland and Germany and
cross-border intermodal services connecting Northern Europe seaports
with key industrial regions throughout the continent.
G&W subsidiaries provide rail service at more than 40 major ports in
North America, Australia and Europe and perform contract coal loading
and railcar switching for industrial customers.
From time to time, we may use our website as a channel of distribution
of material company information. Financial and other material
information regarding G&W is routinely posted on and accessible at www.gwrr.com/investors.
In addition, you may automatically receive email alerts and other
information about us by enrolling your email address in the "Email
Alerts" section of www.gwrr.com/investors.
The information contained on or connected to our Internet website is not
deemed to be incorporated by reference in this press release or filed
with the SEC.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains forward-looking statements regarding future
events and the future performance of Genesee & Wyoming Inc. that are
based on current expectations, estimates and projections about our
industry, management’s beliefs, and assumptions made by management.
Words such as “anticipates,” “intends,” “plans,” “believes,” “could,”
“should,” “seeks,” “expects,” “will,” “estimates,” “trends,” “outlook,”
variations of these words and similar expressions are intended to
identify these forward-looking statements. These statements are not
guarantees of future performance and are subject to certain risks,
uncertainties and assumptions that are difficult to forecast, including
the following: risks related to the operation of our railroads; severe
weather conditions and other natural occurrences, which could result in
shutdowns, derailments, railroad network congestion or other substantial
disruption of operations; customer demand and changes in our operations;
exposure to the credit risk of customers and counterparties; changes in
commodity prices; consummation and integration of acquisitions;
economic, political and industry conditions (including employee strikes
or work stoppages); retention and contract continuation; legislative and
regulatory developments, including changes in environmental and other
laws and regulations to which we are subject; increased competition in
relevant markets; funding needs and financing sources, including our
ability to obtain government funding for capital projects; international
complexities of operations, currency fluctuations, finance, tax and
decentralized management; challenges of managing rapid growth including
retention and development of senior leadership; unpredictability of fuel
costs; susceptibility to various legal claims and lawsuits; increase in,
or volatility associated with, expenses related to estimated claims,
self-insured retention amounts, and insurance coverage limits;
consummation of new business opportunities; decrease in revenues and/or
increase in costs and expenses; susceptibility to the risks of doing
business in foreign countries; our ability to realize the expected
synergies associated with acquisitions; and others including, but not
limited to, those noted in our 2015 Annual Report on Form 10-K and our
Quarterly Reports on Form 10-Q under “Risk Factors.” Therefore, actual
results may differ materially from those expressed or forecasted in any
such forward-looking statements. Forward-looking statements speak only
as of the date of this press release or as of the date they were made.
G&W does not undertake, and expressly disclaims, any duty to publicly
update any forward-looking statement, whether as a result of new
information, future events, or otherwise, except as required by law.
1. Foreign exchange impact is calculated by comparing the prior year
period results translated from local currency to U.S. dollars using
current period exchange rates to the prior period results in U.S.
dollars as reported.
2. Adjusted operating income, adjusted net income attributable to G&W,
adjusted diluted earnings per common share attributable to G&W (EPS) and
free cash flow are non-GAAP financial measures and are not intended to
replace financial measures calculated in accordance with GAAP. The
information required by Item 10(e) of Regulation S-K under the
Securities Act of 1933 and the Securities Exchange Act of 1934 and
Regulation G under the Securities Exchange Act of 1934, including a
reconciliation to their most directly comparable financial measures
calculated in accordance with GAAP, is included in the tables attached
to this press release.
|
|
GENESEE & WYOMING INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
FOR THE THREE AND TWELVE MONTHS
ENDED DECEMBER 31, 2016 AND 2015
(in thousands, except
per share amounts)
(unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Twelve Months Ended
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
OPERATING REVENUES
|
|
|
|
$
|
516,534
|
|
|
|
$
|
514,853
|
|
|
|
$
|
2,001,527
|
|
|
|
$
|
2,000,401
|
|
|
OPERATING EXPENSES
|
|
|
|
462,963
|
|
|
|
420,222
|
|
|
|
1,711,915
|
|
|
|
1,616,140
|
|
|
OPERATING INCOME
|
|
|
|
53,571
|
|
|
|
94,631
|
|
|
|
289,612
|
|
|
|
384,261
|
|
|
INTEREST INCOME
|
|
|
|
280
|
|
|
|
106
|
|
|
|
1,107
|
|
|
|
481
|
|
|
INTEREST EXPENSE
|
|
|
|
(22,592
|
)
|
|
|
(18,329
|
)
|
|
|
(75,641
|
)
|
|
|
(67,073
|
)
|
|
LOSS ON SETTLEMENT OF FOREIGN CURRENCY
FORWARD PURCHASE
CONTRACTS
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(18,686
|
)
|
|
OTHER (EXPENSE)/INCOME, NET
|
|
|
|
(2,534
|
)
|
|
|
1,403
|
|
|
|
413
|
|
|
|
1,948
|
|
|
INCOME BEFORE INCOME TAXES
|
|
|
|
28,725
|
|
|
|
77,811
|
|
|
|
215,491
|
|
|
|
300,931
|
|
|
(PROVISION FOR)/BENEFIT FROM INCOME TAXES
|
|
|
|
(19,832
|
)
|
|
|
7,123
|
|
|
|
(74,395
|
)
|
|
|
(75,894
|
)
|
|
NET INCOME
|
|
|
|
8,893
|
|
|
|
84,934
|
|
|
|
141,096
|
|
|
|
225,037
|
|
|
LESS: NET LOSS ATTRIBUTABLE TO
NONCONTROLLING
INTEREST
|
|
|
|
(41
|
)
|
|
|
—
|
|
|
|
(41
|
)
|
|
|
—
|
|
|
NET INCOME ATTRIBUTABLE TO GENESEE &
WYOMING INC.
|
|
|
|
$
|
8,934
|
|
|
|
$
|
84,934
|
|
|
|
$
|
141,137
|
|
|
|
$
|
225,037
|
|
|
BASIC EARNINGS PER COMMON SHARE
ATTRIBUTABLE TO GENESEE &
WYOMING INC.
COMMON STOCKHOLDERS
|
|
|
|
$
|
0.15
|
|
|
|
$
|
1.49
|
|
|
|
$
|
2.46
|
|
|
|
$
|
3.97
|
|
|
WEIGHTED AVERAGE SHARES - BASIC
|
|
|
|
57,832
|
|
|
|
56,915
|
|
|
|
57,324
|
|
|
|
56,734
|
|
|
DILUTED EARNINGS PER COMMON SHARE
ATTRIBUTABLE TO GENESEE &
WYOMING INC.
COMMON STOCKHOLDERS
|
|
|
|
$
|
0.15
|
|
|
|
$
|
1.47
|
|
|
|
$
|
2.42
|
|
|
|
$
|
3.89
|
|
|
WEIGHTED AVERAGE SHARES - DILUTED
|
|
|
|
58,785
|
|
|
|
57,886
|
|
|
|
58,256
|
|
|
|
57,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENESEE & WYOMING INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
AS OF DECEMBER 31, 2016 AND 2015
(in
thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
ASSETS
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
32,319
|
|
|
|
$
|
35,941
|
|
Accounts receivable, net
|
|
|
|
363,923
|
|
|
|
382,458
|
|
Materials and supplies
|
|
|
|
43,621
|
|
|
|
45,790
|
|
Prepaid expenses and other
|
|
|
|
45,475
|
|
|
|
43,197
|
|
Total current assets
|
|
|
|
485,338
|
|
|
|
507,386
|
|
PROPERTY AND EQUIPMENT, net
|
|
|
|
4,503,319
|
|
|
|
4,215,063
|
|
GOODWILL
|
|
|
|
1,125,596
|
|
|
|
826,575
|
|
INTANGIBLE ASSETS, net
|
|
|
|
1,472,376
|
|
|
|
1,128,952
|
|
DEFERRED INCOME TAX ASSETS, net
|
|
|
|
2,671
|
|
|
|
2,270
|
|
OTHER ASSETS, net
|
|
|
|
45,658
|
|
|
|
22,836
|
|
Total assets
|
|
|
|
$
|
7,634,958
|
|
|
|
$
|
6,703,082
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
|
|
$
|
52,538
|
|
|
|
$
|
75,966
|
|
Accounts payable
|
|
|
|
266,867
|
|
|
|
282,275
|
|
Accrued expenses
|
|
|
|
159,705
|
|
|
|
169,586
|
|
Total current liabilities
|
|
|
|
479,110
|
|
|
|
527,827
|
|
LONG-TERM DEBT, less current portion
|
|
|
|
2,306,915
|
|
|
|
2,205,785
|
|
DEFERRED INCOME TAX LIABILITIES, net
|
|
|
|
1,162,221
|
|
|
|
983,136
|
|
DEFERRED ITEMS - grants from outside parties
|
|
|
|
301,383
|
|
|
|
292,198
|
|
OTHER LONG-TERM LIABILITIES
|
|
|
|
198,208
|
|
|
|
174,675
|
|
TOTAL EQUITY
|
|
|
|
3,187,121
|
|
|
|
2,519,461
|
|
Total liabilities and equity
|
|
|
|
$
|
7,634,958
|
|
|
|
$
|
6,703,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENESEE & WYOMING INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED
DECEMBER 31, 2016 AND 2015
(in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31,
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
141,096
|
|
|
|
$
|
225,037
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
205,188
|
|
|
|
188,535
|
|
|
Stock-based compensation
|
|
|
|
17,976
|
|
|
|
14,649
|
|
|
Excess tax benefits from share-based compensation
|
|
|
|
(28
|
)
|
|
|
(1,477
|
)
|
|
Deferred income taxes
|
|
|
|
33,442
|
|
|
|
40,477
|
|
|
Net loss/(gain) on sale and impairment of assets
|
|
|
|
32,485
|
|
|
|
(2,291
|
)
|
|
Loss on settlement of foreign currency forward purchase contracts
|
|
|
|
—
|
|
|
|
18,686
|
|
|
Changes in assets and liabilities which (used) provided cash, net
of effect of
acquisitions:
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
(15,953
|
)
|
|
|
28,905
|
|
|
Materials and supplies
|
|
|
|
750
|
|
|
|
(4,073
|
)
|
|
Prepaid expenses and other
|
|
|
|
836
|
|
|
|
7,462
|
|
|
Accounts payable and accrued expenses
|
|
|
|
(20,468
|
)
|
|
|
(39,881
|
)
|
|
Other assets and liabilities, net
|
|
|
|
11,715
|
|
|
|
(882
|
)
|
|
Net cash provided by operating activities
|
|
|
|
407,039
|
|
|
|
475,147
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
|
(219,544
|
)
|
|
|
(371,504
|
)
|
|
Grant proceeds from outside parties
|
|
|
|
36,094
|
|
|
|
41,742
|
|
|
Cash paid for acquisitions, net of cash acquired
|
|
|
|
(969,476
|
)
|
|
|
(740,237
|
)
|
|
Net payment from settlement of foreign currency forward purchase
contracts related
to an acquisition
|
|
|
|
—
|
|
|
|
(18,686
|
)
|
|
Insurance proceeds for the replacement of assets
|
|
|
|
15,201
|
|
|
|
10,394
|
|
|
Proceeds from disposition of property and equipment
|
|
|
|
2,691
|
|
|
|
4,018
|
|
|
Net cash used in investing activities
|
|
|
|
(1,135,034
|
)
|
|
|
(1,074,273
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Principal payments on revolving line-of-credit, long-term debt and
capital lease
obligations
|
|
|
|
(1,104,222
|
)
|
|
|
(675,430
|
)
|
|
Proceeds from revolving line-of-credit and long-term borrowings
|
|
|
|
1,074,516
|
|
|
|
1,261,640
|
|
|
Proceeds from noncontrolling interest
|
|
|
|
476,828
|
|
|
|
—
|
|
|
Proceeds from Class A common stock issuance
|
|
|
|
300,000
|
|
|
|
—
|
|
|
Stock issuance costs
|
|
|
|
(14,243
|
)
|
|
|
—
|
|
|
Debt amendment/issuance costs
|
|
|
|
(17,731
|
)
|
|
|
(9,622
|
)
|
|
Proceeds from employee stock purchases
|
|
|
|
9,317
|
|
|
|
6,829
|
|
|
Excess tax benefits from share-based compensation
|
|
|
|
28
|
|
|
|
1,477
|
|
|
Treasury stock acquisitions
|
|
|
|
(4,541
|
)
|
|
|
(3,261
|
)
|
|
Net cash provided by financing activities
|
|
|
|
719,952
|
|
|
|
581,633
|
|
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
|
|
|
4,421
|
|
|
|
(6,293
|
)
|
|
DECREASE IN CASH AND CASH EQUIVALENTS
|
|
|
|
(3,622
|
)
|
|
|
(23,786
|
)
|
|
CASH AND CASH EQUIVALENTS, beginning of period
|
|
|
|
35,941
|
|
|
|
59,727
|
|
|
CASH AND CASH EQUIVALENTS, end of period
|
|
|
|
$
|
32,319
|
|
|
|
$
|
35,941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENESEE & WYOMING INC. AND SUBSIDIARIES
SELECTED
CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
Amount
|
|
|
% of
Revenue
|
|
|
Amount
|
|
|
% of
Revenue
|
|
|
Amount
|
|
|
% of
Revenue
|
|
|
Amount
|
|
|
% of
Revenue
|
|
Operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight revenues
|
|
|
|
$
|
354,563
|
|
|
|
68.7
|
%
|
|
|
$
|
348,787
|
|
|
|
67.8
|
%
|
|
|
$
|
1,371,566
|
|
|
|
68.5
|
%
|
|
|
$
|
1,400,547
|
|
|
|
70.0
|
%
|
|
Freight-related revenues
|
|
|
|
139,693
|
|
|
|
27.0
|
%
|
|
|
140,559
|
|
|
|
27.3
|
%
|
|
|
536,359
|
|
|
|
26.8
|
%
|
|
|
502,083
|
|
|
|
25.1
|
%
|
|
All other revenues
|
|
|
|
22,278
|
|
|
|
4.3
|
%
|
|
|
25,507
|
|
|
|
4.9
|
%
|
|
|
93,602
|
|
|
|
4.7
|
%
|
|
|
97,771
|
|
|
|
4.9
|
%
|
|
Total operating revenues
|
|
|
|
$
|
516,534
|
|
|
|
100.0
|
%
|
|
|
$
|
514,853
|
|
|
|
100.0
|
%
|
|
|
$
|
2,001,527
|
|
|
|
100.0
|
%
|
|
|
$
|
2,000,401
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Labor and benefits(a)
|
|
|
|
$
|
157,817
|
|
|
|
30.5
|
%
|
|
|
$
|
158,878
|
|
|
|
30.8
|
%
|
|
|
$
|
633,114
|
|
|
|
31.5
|
%
|
|
|
$
|
614,967
|
|
|
|
30.7
|
%
|
|
Equipment rents(b)
|
|
|
|
45,738
|
|
|
|
8.8
|
%
|
|
|
39,680
|
|
|
|
7.7
|
%
|
|
|
159,372
|
|
|
|
8.0
|
%
|
|
|
149,825
|
|
|
|
7.5
|
%
|
|
Purchased services(c)
|
|
|
|
48,921
|
|
|
|
9.5
|
%
|
|
|
51,056
|
|
|
|
9.9
|
%
|
|
|
198,046
|
|
|
|
9.9
|
%
|
|
|
186,905
|
|
|
|
9.3
|
%
|
|
Depreciation and
amortization(d)
|
|
|
|
54,093
|
|
|
|
10.5
|
%
|
|
|
49,967
|
|
|
|
9.7
|
%
|
|
|
205,188
|
|
|
|
10.3
|
%
|
|
|
188,535
|
|
|
|
9.4
|
%
|
|
Diesel fuel used in
train operations
|
|
|
|
34,352
|
|
|
|
6.7
|
%
|
|
|
30,293
|
|
|
|
5.9
|
%
|
|
|
118,203
|
|
|
|
5.9
|
%
|
|
|
132,149
|
|
|
|
6.6
|
%
|
|
Electricity used in
train operations
|
|
|
|
3,451
|
|
|
|
0.7
|
%
|
|
|
3,184
|
|
|
|
0.6
|
%
|
|
|
13,346
|
|
|
|
0.7
|
%
|
|
|
13,714
|
|
|
|
0.7
|
%
|
|
Casualties
and insurance
|
|
|
|
10,070
|
|
|
|
1.9
|
%
|
|
|
12,467
|
|
|
|
2.4
|
%
|
|
|
38,884
|
|
|
|
1.9
|
%
|
|
|
42,494
|
|
|
|
2.1
|
%
|
|
Materials
|
|
|
|
19,860
|
|
|
|
3.8
|
%
|
|
|
24,484
|
|
|
|
4.8
|
%
|
|
|
82,522
|
|
|
|
4.1
|
%
|
|
|
95,248
|
|
|
|
4.9
|
%
|
|
Trackage rights
|
|
|
|
22,685
|
|
|
|
4.4
|
%
|
|
|
20,870
|
|
|
|
4.1
|
%
|
|
|
87,194
|
|
|
|
4.4
|
%
|
|
|
78,140
|
|
|
|
3.9
|
%
|
|
Net loss/(gain) on
sale and impairment
of assets(e)
|
|
|
|
20,491
|
|
|
|
4.0
|
%
|
|
|
(310
|
)
|
|
|
(0.1
|
)%
|
|
|
32,484
|
|
|
|
1.6
|
%
|
|
|
(2,291
|
)
|
|
|
(0.1
|
)%
|
|
Restructuring costs
|
|
|
|
1,862
|
|
|
|
0.4
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
|
8,182
|
|
|
|
0.4
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
Other expenses(f)
|
|
|
|
43,623
|
|
|
|
8.4
|
%
|
|
|
29,653
|
|
|
|
5.8
|
%
|
|
|
135,380
|
|
|
|
6.8
|
%
|
|
|
116,454
|
|
|
|
5.8
|
%
|
|
Total operating expenses
|
|
|
|
$
|
462,963
|
|
|
|
89.6
|
%
|
|
|
$
|
420,222
|
|
|
|
81.6
|
%
|
|
|
$
|
1,711,915
|
|
|
|
85.5
|
%
|
|
|
$
|
1,616,140
|
|
|
|
80.8
|
%
|
|
Operating income
|
|
|
|
$
|
53,571
|
|
|
|
|
|
|
$
|
94,631
|
|
|
|
|
|
|
$
|
289,612
|
|
|
|
|
|
|
$
|
384,261
|
|
|
|
|
|
Expenditures for
additions to property &
equipment,
net of grants
from outside parties
|
|
|
|
$
|
53,879
|
|
|
|
|
|
|
$
|
85,068
|
|
|
|
|
|
|
$
|
183,450
|
|
|
|
|
|
|
$
|
329,762
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
|
Includes $2.4 million and $2.8 million corporate development and
related costs for the three and twelve months ended December 31,
2016, respectively. Includes $2.3 million of corporate development
and related costs for twelve months ended December 31, 2015.
Includes $0.7 million and $0.9 million Freightliner
acquisition/integration related costs for the three and twelve
months ended December, 2015, respectively.
|
|
(b)
|
|
|
Includes $9.9 million related to leases of idle excess U.K. coal
railcars for both the three and twelve months ended December 31,
2016.
|
|
(c)
|
|
|
Includes $0.2 million and $0.4 million Freightliner
acquisition/integration related costs for the three and twelve
months ended December 31, 2015, respectively.
|
|
(d)
|
|
|
Includes $2.6 million out of period impact of final allocation of
fair values to Freightliner's assets and liabilities for the three
months ended December 31, 2015.
|
|
(e)
|
|
|
Includes an impairment charge of $18.9 million associated with our
ERS business and $0.5 million related to leasehold improvements
associated with leases of idle excess U.K. coal railcars for both
the three and twelve months ended December 31, 2016. Includes an
impairment charge of $13.0 million associated with an Australia iron
ore customer entering into voluntary administration for the twelve
months ended December 31, 2016.
|
|
(f)
|
|
|
Includes $2.6 million write-down of accounts receivable associated
with our ERS business for both the three and twelve months ended
December 31, 2016. Includes the write-down of accounts receivable
of $8.1 million associated with an Australia iron ore customer for
the twelve months ended December 31, 2016, respectively. Includes
$13.6 million and $20.5 million corporate development and related
costs for the three and twelve months ended December 31, 2016,
respectively. Includes $1.3 million and $2.1 million corporate
development and related costs for the three and twelve months
ended December 31, 2015, respectively. Includes $0.3 million and
$14.0 million Freightliner acquisition/integration costs for the
three and twelve months ended December 31, 2015, respectively.
|
|
|
|
|
|
|
|
GENESEE & WYOMING INC. AND SUBSIDIARIES
NORTH
AMERICAN OPERATIONS SELECTED CONSOLIDATED FINANCIAL INFORMATION
(dollars
in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
Amount
|
|
|
% of
Revenue
|
|
|
Amount
|
|
|
% of
Revenue
|
|
|
Amount
|
|
|
% of
Revenue
|
|
|
Amount
|
|
|
% of
Revenue
|
|
Operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight revenues
|
|
|
|
$
|
232,465
|
|
|
|
72.1
|
%
|
|
|
$
|
226,435
|
|
|
|
75.8
|
%
|
|
|
$
|
913,619
|
|
|
|
73.9
|
%
|
|
|
$
|
949,028
|
|
|
|
76.4
|
%
|
|
Freight-related revenues
|
|
|
|
74,295
|
|
|
|
23.1
|
%
|
|
|
56,681
|
|
|
|
19.0
|
%
|
|
|
258,922
|
|
|
|
20.9
|
%
|
|
|
227,154
|
|
|
|
18.3
|
%
|
|
All other revenues
|
|
|
|
15,457
|
|
|
|
4.8
|
%
|
|
|
15,532
|
|
|
|
5.2
|
%
|
|
|
64,223
|
|
|
|
5.2
|
%
|
|
|
65,633
|
|
|
|
5.3
|
%
|
|
Total operating revenues
|
|
|
|
$
|
322,217
|
|
|
|
100.0
|
%
|
|
|
$
|
298,648
|
|
|
|
100.0
|
%
|
|
|
$
|
1,236,764
|
|
|
|
100.0
|
%
|
|
|
$
|
1,241,815
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Labor and benefits(a)
|
|
|
|
$
|
101,526
|
|
|
|
31.5
|
%
|
|
|
$
|
94,276
|
|
|
|
31.6
|
%
|
|
|
$
|
397,129
|
|
|
|
32.1
|
%
|
|
|
$
|
397,911
|
|
|
|
32.0
|
%
|
|
Equipment rents
|
|
|
|
14,199
|
|
|
|
4.4
|
%
|
|
|
14,978
|
|
|
|
5.0
|
%
|
|
|
57,680
|
|
|
|
4.7
|
%
|
|
|
65,918
|
|
|
|
5.3
|
%
|
|
Purchased services(b)
|
|
|
|
15,198
|
|
|
|
4.7
|
%
|
|
|
17,374
|
|
|
|
5.8
|
%
|
|
|
62,369
|
|
|
|
5.0
|
%
|
|
|
63,986
|
|
|
|
5.1
|
%
|
|
Depreciation
and amortization
|
|
|
|
37,129
|
|
|
|
11.5
|
%
|
|
|
36,415
|
|
|
|
12.2
|
%
|
|
|
147,527
|
|
|
|
11.9
|
%
|
|
|
141,814
|
|
|
|
11.4
|
%
|
|
Diesel fuel used in
train operations
|
|
|
|
17,445
|
|
|
|
5.4
|
%
|
|
|
15,404
|
|
|
|
5.2
|
%
|
|
|
59,023
|
|
|
|
4.8
|
%
|
|
|
75,630
|
|
|
|
6.1
|
%
|
|
Casualties and
insurance
|
|
|
|
8,705
|
|
|
|
2.7
|
%
|
|
|
8,913
|
|
|
|
3.0
|
%
|
|
|
29,103
|
|
|
|
2.4
|
%
|
|
|
29,574
|
|
|
|
2.4
|
%
|
|
Materials
|
|
|
|
11,927
|
|
|
|
3.7
|
%
|
|
|
12,419
|
|
|
|
4.2
|
%
|
|
|
50,095
|
|
|
|
4.0
|
%
|
|
|
57,808
|
|
|
|
4.7
|
%
|
|
Trackage rights
|
|
|
|
9,846
|
|
|
|
3.1
|
%
|
|
|
5,785
|
|
|
|
1.9
|
%
|
|
|
36,645
|
|
|
|
3.0
|
%
|
|
|
24,601
|
|
|
|
2.0
|
%
|
|
Net loss/(gain) on sale
and impairment of
assets
|
|
|
|
642
|
|
|
|
0.2
|
%
|
|
|
(277
|
)
|
|
|
(0.1
|
)%
|
|
|
(209
|
)
|
|
|
—
|
%
|
|
|
(2,001
|
)
|
|
|
(0.2
|
)%
|
|
Restructuring costs
|
|
|
|
79
|
|
|
|
—
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
|
884
|
|
|
|
0.1
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
Other expenses(c)
|
|
|
|
22,124
|
|
|
|
6.9
|
%
|
|
|
20,141
|
|
|
|
6.7
|
%
|
|
|
76,967
|
|
|
|
6.2
|
%
|
|
|
89,088
|
|
|
|
7.2
|
%
|
|
Total operating expenses
|
|
|
|
$
|
238,820
|
|
|
|
74.1
|
%
|
|
|
$
|
225,428
|
|
|
|
75.5
|
%
|
|
|
$
|
917,213
|
|
|
|
74.2
|
%
|
|
|
$
|
944,329
|
|
|
|
76.0
|
%
|
|
Operating income
|
|
|
|
$
|
83,397
|
|
|
|
|
|
|
$
|
73,220
|
|
|
|
|
|
|
$
|
319,551
|
|
|
|
|
|
|
$
|
297,486
|
|
|
|
|
|
Expenditures for
additions to property &
equipment,
net of grants
from outside parties
|
|
|
|
$
|
42,052
|
|
|
|
|
|
|
$
|
61,218
|
|
|
|
|
|
|
$
|
137,334
|
|
|
|
|
|
|
$
|
266,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
|
Includes $1.7 million and $1.9 million corporate development and
related costs for the three and twelve months ended December 31,
2016, respectively. Includes $0.1 million and $0.2 million
Freightliner acquisition/integration related costs for the three and
twelve months ended December 31, 2015, respectively.
|
|
(b)
|
|
|
Includes $0.2 million and $0.4 million Freightliner
acquisition/integration related costs for the three and twelve
months ended December 31, 2015, respectively.
|
|
(c)
|
|
|
Includes $2.3 million and $5.3 million corporate development and
related costs for the three and twelve months ended December 31,
2016, respectively. Includes $0.6 million and $1.4 million corporate
development and related costs for the three and twelve months ended
December 31, 2015, respectively. Includes $0.2 million and $13.9
million of Freightliner acquisition/integration costs for the three
and twelve months ended December 31, 2015, respectively.
|
|
|
GENESEE & WYOMING INC. AND SUBSIDIARIES
AUSTRALIAN
OPERATIONS SELECTED CONSOLIDATED FINANCIAL INFORMATION*
(dollars
in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
Amount
|
|
|
% of
Revenue
|
|
|
Amount
|
|
|
% of
Revenue
|
|
|
Amount
|
|
|
% of
Revenue
|
|
|
Amount
|
|
|
% of
Revenue
|
|
Operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight revenues
|
|
|
|
$
|
40,232
|
|
|
|
65.6
|
%
|
|
|
$
|
28,248
|
|
|
|
51.2
|
%
|
|
|
$
|
120,622
|
|
|
|
54.2
|
%
|
|
|
$
|
146,850
|
|
|
|
60.4
|
%
|
|
Freight-related revenues
|
|
|
|
19,634
|
|
|
|
32.0
|
%
|
|
|
25,373
|
|
|
|
46.0
|
%
|
|
|
95,776
|
|
|
|
43.0
|
%
|
|
|
87,616
|
|
|
|
36.1
|
%
|
|
All other revenues
|
|
|
|
1,489
|
|
|
|
2.4
|
%
|
|
|
1,568
|
|
|
|
2.8
|
%
|
|
|
6,188
|
|
|
|
2.8
|
%
|
|
|
8,486
|
|
|
|
3.5
|
%
|
|
Total operating revenues
|
|
|
|
$
|
61,355
|
|
|
|
100.0
|
%
|
|
|
$
|
55,189
|
|
|
|
100.0
|
%
|
|
|
$
|
222,586
|
|
|
|
100.0
|
%
|
|
|
$
|
242,952
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Labor and benefits(a)
|
|
|
|
$
|
17,226
|
|
|
|
28.1
|
%
|
|
|
$
|
15,735
|
|
|
|
28.5
|
%
|
|
|
$
|
66,547
|
|
|
|
29.9
|
%
|
|
|
$
|
67,947
|
|
|
|
28.0
|
%
|
|
Equipment rents
|
|
|
|
1,630
|
|
|
|
2.7
|
%
|
|
|
3,009
|
|
|
|
5.5
|
%
|
|
|
6,514
|
|
|
|
2.9
|
%
|
|
|
12,298
|
|
|
|
5.1
|
%
|
|
Purchased services
|
|
|
|
5,997
|
|
|
|
9.8
|
%
|
|
|
3,722
|
|
|
|
6.7
|
%
|
|
|
23,429
|
|
|
|
10.5
|
%
|
|
|
19,560
|
|
|
|
8.0
|
%
|
|
Depreciation and
amortization
|
|
|
|
9,845
|
|
|
|
16.0
|
%
|
|
|
6,654
|
|
|
|
12.1
|
%
|
|
|
30,863
|
|
|
|
13.9
|
%
|
|
|
27,425
|
|
|
|
11.3
|
%
|
|
Diesel fuel used in
train operations
|
|
|
|
5,701
|
|
|
|
9.3
|
%
|
|
|
5,247
|
|
|
|
9.5
|
%
|
|
|
19,743
|
|
|
|
8.9
|
%
|
|
|
21,150
|
|
|
|
8.7
|
%
|
|
Casualties and
insurance
|
|
|
|
347
|
|
|
|
0.6
|
%
|
|
|
3,035
|
|
|
|
5.5
|
%
|
|
|
5,373
|
|
|
|
2.4
|
%
|
|
|
8,498
|
|
|
|
3.5
|
%
|
|
Materials
|
|
|
|
2,526
|
|
|
|
4.1
|
%
|
|
|
3,510
|
|
|
|
6.4
|
%
|
|
|
10,559
|
|
|
|
4.7
|
%
|
|
|
11,408
|
|
|
|
4.7
|
%
|
|
Trackage rights
|
|
|
|
2,846
|
|
|
|
4.6
|
%
|
|
|
2,357
|
|
|
|
4.3
|
%
|
|
|
10,047
|
|
|
|
4.5
|
%
|
|
|
13,234
|
|
|
|
5.4
|
%
|
|
Net loss/(gain) on
sale and impairment
of assets(b)
|
|
|
|
349
|
|
|
|
0.6
|
%
|
|
|
(3
|
)
|
|
|
—
|
%
|
|
|
13,341
|
|
|
|
6.0
|
%
|
|
|
(48
|
)
|
|
|
—
|
%
|
|
Restructuring costs
|
|
|
|
—
|
|
|
|
—
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
|
789
|
|
|
|
0.4
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
Other expenses(c)
|
|
|
|
12,080
|
|
|
|
19.6
|
%
|
|
|
1,414
|
|
|
|
2.5
|
%
|
|
|
30,571
|
|
|
|
13.7
|
%
|
|
|
6,638
|
|
|
|
2.7
|
%
|
|
Total operating expenses
|
|
|
|
$
|
58,547
|
|
|
|
95.4
|
%
|
|
|
$
|
44,680
|
|
|
|
81.0
|
%
|
|
|
$
|
217,776
|
|
|
|
97.8
|
%
|
|
|
$
|
188,110
|
|
|
|
77.4
|
%
|
|
Operating income
|
|
|
|
$
|
2,808
|
|
|
|
|
|
|
$
|
10,509
|
|
|
|
|
|
|
$
|
4,810
|
|
|
|
|
|
|
$
|
54,842
|
|
|
|
|
|
Expenditures for
additions to property &
equipment,
net of grants
from outside parties
|
|
|
|
$
|
3,191
|
|
|
|
|
|
|
$
|
11,051
|
|
|
|
|
|
|
$
|
11,285
|
|
|
|
|
|
|
$
|
31,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
|
Amounts shown represent 100% of our Australian Operations, which is
51.1% owned by G&W as of December 1, 2016.
|
|
(a)
|
|
|
Includes $0.7 million and $0.8 million corporate development and
related costs for the three and twelve months ended December 31,
2016, respectively. Includes $2.3 million corporate development and
related costs for the twelve months ended December 31, 2015.
|
|
(b)
|
|
|
Includes an impairment charge of $13.0 million associated with an
iron ore customer entering into voluntary administration for the
twelve months ended December 31, 2016.
|
|
(c)
|
|
|
Includes $10.0 million and $13.9 million corporate development and
related costs for the three and twelve months ended December 31,
2016, respectively. Includes the write-down of accounts receivable
of $8.1 million associated with an iron ore customer entering into
voluntary administration for the twelve months ended December 31,
2016 (included as impairment and related costs). Includes $0.5
million and $0.4 million corporate development and related costs for
the three and twelve months ended December 31, 2015, respectively.
|
|
|
|
|
|
|
|
GENESEE & WYOMING INC. AND SUBSIDIARIES
U.K./EUROPEAN
OPERATIONS SELECTED CONSOLIDATED FINANCIAL INFORMATION
(dollars
in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
Amount
|
|
|
% of
Revenue
|
|
|
Amount
|
|
|
% of
Revenue
|
|
|
Amount
|
|
|
% of
Revenue
|
|
|
Amount
|
|
|
% of
Revenue
|
|
Operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight revenues
|
|
|
|
$
|
81,866
|
|
|
|
61.6
|
%
|
|
|
$
|
94,104
|
|
|
|
58.5
|
%
|
|
|
$
|
337,325
|
|
|
|
62.2
|
%
|
|
|
$
|
304,669
|
|
|
|
59.1
|
%
|
|
Freight-related revenues
|
|
|
|
45,764
|
|
|
|
34.4
|
%
|
|
|
58,505
|
|
|
|
36.3
|
%
|
|
|
181,661
|
|
|
|
33.5
|
%
|
|
|
187,313
|
|
|
|
36.3
|
%
|
|
All other revenues
|
|
|
|
5,332
|
|
|
|
4.0
|
%
|
|
|
8,407
|
|
|
|
5.2
|
%
|
|
|
23,191
|
|
|
|
4.3
|
%
|
|
|
23,652
|
|
|
|
4.6
|
%
|
|
Total operating revenues
|
|
|
|
$
|
132,962
|
|
|
|
100.0
|
%
|
|
|
$
|
161,016
|
|
|
|
100.0
|
%
|
|
|
$
|
542,177
|
|
|
|
100.0
|
%
|
|
|
$
|
515,634
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Labor and benefits(a)
|
|
|
|
$
|
39,065
|
|
|
|
29.4
|
%
|
|
|
$
|
48,867
|
|
|
|
30.3
|
%
|
|
|
$
|
169,438
|
|
|
|
31.3
|
%
|
|
|
$
|
149,109
|
|
|
|
28.9
|
%
|
|
Equipment rents (b)
|
|
|
|
29,909
|
|
|
|
22.4
|
%
|
|
|
21,693
|
|
|
|
13.5
|
%
|
|
|
95,178
|
|
|
|
17.5
|
%
|
|
|
71,609
|
|
|
|
13.9
|
%
|
|
Purchased services
|
|
|
|
27,726
|
|
|
|
20.8
|
%
|
|
|
29,960
|
|
|
|
18.6
|
%
|
|
|
112,248
|
|
|
|
20.7
|
%
|
|
|
103,359
|
|
|
|
20.0
|
%
|
|
Depreciation and
amortization (c)
|
|
|
|
7,119
|
|
|
|
5.4
|
%
|
|
|
6,898
|
|
|
|
4.3
|
%
|
|
|
26,798
|
|
|
|
4.9
|
%
|
|
|
19,296
|
|
|
|
3.7
|
%
|
|
Diesel fuel used in
train operations
|
|
|
|
11,206
|
|
|
|
8.4
|
%
|
|
|
9,642
|
|
|
|
6.0
|
%
|
|
|
39,437
|
|
|
|
7.3
|
%
|
|
|
35,369
|
|
|
|
6.9
|
%
|
|
Electricity used in
train operations
|
|
|
|
3,451
|
|
|
|
2.6
|
%
|
|
|
3,184
|
|
|
|
2.0
|
%
|
|
|
13,346
|
|
|
|
2.5
|
%
|
|
|
13,714
|
|
|
|
2.7
|
%
|
|
Casualties and
insurance
|
|
|
|
1,018
|
|
|
|
0.8
|
%
|
|
|
519
|
|
|
|
0.3
|
%
|
|
|
4,408
|
|
|
|
0.8
|
%
|
|
|
4,422
|
|
|
|
0.9
|
%
|
|
Materials
|
|
|
|
5,407
|
|
|
|
4.1
|
%
|
|
|
8,555
|
|
|
|
5.3
|
%
|
|
|
21,868
|
|
|
|
4.0
|
%
|
|
|
26,032
|
|
|
|
5.0
|
%
|
|
Trackage rights
|
|
|
|
9,993
|
|
|
|
7.5
|
%
|
|
|
12,728
|
|
|
|
7.9
|
%
|
|
|
40,502
|
|
|
|
7.5
|
%
|
|
|
40,305
|
|
|
|
7.8
|
%
|
|
Net loss/(gain) on
sale and impairment
of assets (d)
|
|
|
|
19,500
|
|
|
|
14.7
|
%
|
|
|
(30
|
)
|
|
|
—
|
%
|
|
|
19,352
|
|
|
|
3.6
|
%
|
|
|
(242
|
)
|
|
|
—
|
%
|
|
Restructuring costs
|
|
|
|
1,783
|
|
|
|
1.3
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
|
6,509
|
|
|
|
1.2
|
%
|
|
|
—
|
|
|
|
—
|
%
|
|
Other expenses (e)
|
|
|
|
9,419
|
|
|
|
7.1
|
%
|
|
|
8,098
|
|
|
|
5.0
|
%
|
|
|
27,842
|
|
|
|
5.1
|
%
|
|
|
20,728
|
|
|
|
4.0
|
%
|
|
Total operating expenses
|
|
|
|
$
|
165,596
|
|
|
|
124.5
|
%
|
|
|
$
|
150,114
|
|
|
|
93.2
|
%
|
|
|
$
|
576,926
|
|
|
|
106.4
|
%
|
|
|
$
|
483,701
|
|
|
|
93.8
|
%
|
|
Operating (loss)/income
|
|
|
|
$
|
(32,634
|
)
|
|
|
|
|
|
$
|
10,902
|
|
|
|
|
|
|
$
|
(34,749
|
)
|
|
|
|
|
|
$
|
31,933
|
|
|
|
|
|
Expenditures for
additions to property &
equipment,
net of grants
from outside parties
|
|
|
|
$
|
8,636
|
|
|
|
|
|
|
$
|
12,799
|
|
|
|
|
|
|
$
|
34,831
|
|
|
|
|
|
|
$
|
32,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
|
Includes $0.2 million corporate development and related costs for
the twelve months ended December 31, 2016. Includes $0.7 million
Freightliner acquisition/integration related costs for both the
three and twelve months ended December 31, 2015.
|
|
(b)
|
|
|
Includes $9.9 million related to leases of idle excess U.K. coal
railcars for both the three and twelve months ended December 31,
2016.
|
|
(c)
|
|
|
Includes $2.6 million out of period impact of final allocation of
fair values to Freightliner's assets and liabilities for the three
months ended December 31, 2015.
|
|
(d)
|
|
|
Includes an impairment charge of $18.9 million associated with our
ERS business and $0.5 million related to leasehold improvements
associated with leases of idle excess U.K. coal railcars for both
the three and twelve months ended December 31, 2016.
|
|
(e)
|
|
|
Includes $2.6 million write-down of accounts receivable associated
with our ERS business for both the three and twelve months ended
December 31, 2016. Includes $1.3 million corporate development and
related costs for the both the three and twelve months ended
December 31, 2016. Includes $0.2 million and $0.3 million corporate
development and related costs for the three and twelve months ended
December 31, 2015, respectively.
|
|
|
|
|
|
|
|
GENESEE & WYOMING INC. AND SUBSIDIARIES
FREIGHT
REVENUES, CARLOADS AND AVERAGE REVENUES PER CARLOAD
COMPARISON
BY COMMODITY GROUP
(dollars in thousands, except average
revenues per carload)
(unaudited)
|
|
|
|
Three Months Ended
December 31, 2016
|
|
|
|
North American Operations
|
|
|
Australian Operations*
|
|
|
U.K./European Operations
|
|
|
Total Operations
|
|
Commodity Group
|
|
|
|
Freight
Revenues
|
|
|
Carloads**
|
|
|
Average
Revenues
Per
Carload
|
|
|
Freight
Revenues
|
|
|
Carloads**
|
|
|
Average
Revenues
Per
Carload
|
|
|
Freight
Revenues
|
|
|
Carloads**
|
|
|
Average
Revenues
Per
Carload
|
|
|
Freight
Revenues
|
|
|
Carloads**
|
|
|
Average
Revenues
Per
Carload
|
|
Agricultural Products
|
|
|
|
$
|
31,026
|
|
|
|
57,669
|
|
|
|
$
|
538
|
|
|
|
$
|
4,192
|
|
|
|
10,661
|
|
|
|
$
|
393
|
|
|
|
$
|
1,101
|
|
|
|
1,058
|
|
|
|
$
|
1,041
|
|
|
|
$
|
36,319
|
|
|
|
69,388
|
|
|
|
$
|
523
|
|
Autos & Auto Parts
|
|
|
|
4,886
|
|
|
|
8,321
|
|
|
|
587
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,886
|
|
|
|
8,321
|
|
|
|
587
|
|
Chemicals & Plastics
|
|
|
|
34,143
|
|
|
|
43,680
|
|
|
|
782
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
34,143
|
|
|
|
43,680
|
|
|
|
782
|
|
Coal & Coke
|
|
|
|
21,353
|
|
|
|
63,058
|
|
|
|
339
|
|
|
|
11,112
|
|
|
|
35,203
|
|
|
|
316
|
|
|
|
4,031
|
|
|
|
13,528
|
|
|
|
298
|
|
|
|
36,496
|
|
|
|
111,789
|
|
|
|
326
|
|
Food & Kindred Products
|
|
|
|
8,593
|
|
|
|
15,905
|
|
|
|
540
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8,593
|
|
|
|
15,905
|
|
|
|
540
|
|
Intermodal
|
|
|
|
87
|
|
|
|
1,246
|
|
|
|
70
|
|
|
|
17,456
|
|
|
|
15,328
|
|
|
|
1,139
|
|
|
|
61,976
|
|
|
|
225,090
|
|
|
|
275
|
|
|
|
79,519
|
|
|
|
241,664
|
|
|
|
329
|
|
Lumber & Forest Products
|
|
|
|
20,496
|
|
|
|
33,450
|
|
|
|
613
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
44
|
|
|
|
158
|
|
|
|
278
|
|
|
|
20,540
|
|
|
|
33,608
|
|
|
|
611
|
|
Metallic Ores
|
|
|
|
3,741
|
|
|
|
4,814
|
|
|
|
777
|
|
|
|
5,384
|
|
|
|
4,625
|
|
|
|
1,164
|
|
|
|
60
|
|
|
|
108
|
|
|
|
556
|
|
|
|
9,185
|
|
|
|
9,547
|
|
|
|
962
|
|
Metals
|
|
|
|
25,472
|
|
|
|
34,134
|
|
|
|
746
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
25,472
|
|
|
|
34,134
|
|
|
|
746
|
|
Minerals & Stone
|
|
|
|
28,745
|
|
|
|
48,756
|
|
|
|
590
|
|
|
|
1,936
|
|
|
|
16,508
|
|
|
|
117
|
|
|
|
14,654
|
|
|
|
41,280
|
|
|
|
355
|
|
|
|
45,335
|
|
|
|
106,544
|
|
|
|
426
|
|
Petroleum Products
|
|
|
|
18,184
|
|
|
|
26,308
|
|
|
|
691
|
|
|
|
152
|
|
|
|
64
|
|
|
|
2,375
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18,336
|
|
|
|
26,372
|
|
|
|
695
|
|
Pulp & Paper
|
|
|
|
25,436
|
|
|
|
39,578
|
|
|
|
643
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
25,436
|
|
|
|
39,578
|
|
|
|
643
|
|
Waste
|
|
|
|
5,283
|
|
|
|
11,696
|
|
|
|
452
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,283
|
|
|
|
11,696
|
|
|
|
452
|
|
Other
|
|
|
|
5,020
|
|
|
|
14,324
|
|
|
|
350
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,020
|
|
|
|
14,324
|
|
|
|
350
|
|
Totals
|
|
|
|
$
|
232,465
|
|
|
|
402,939
|
|
|
|
$
|
577
|
|
|
|
$
|
40,232
|
|
|
|
82,389
|
|
|
|
$
|
488
|
|
|
|
$
|
81,866
|
|
|
|
281,222
|
|
|
|
$
|
291
|
|
|
|
$
|
354,563
|
|
|
|
766,550
|
|
|
|
$
|
463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2015
|
|
|
|
North American Operations
|
|
|
Australian Operations*
|
|
|
U.K./European Operations
|
|
|
Total Operations
|
|
Commodity Group
|
|
|
|
Freight
Revenues
|
|
|
Carloads**
|
|
|
Average
Revenues
Per
Carload
|
|
|
Freight
Revenues
|
|
|
Carloads**
|
|
|
Average
Revenues
Per
Carload
|
|
|
Freight
Revenues
|
|
|
Carloads**
|
|
|
Average
Revenues
Per
Carload
|
|
|
Freight
Revenues
|
|
|
Carloads**
|
|
|
Average
Revenues
Per
Carload
|
|
Agricultural Products
|
|
|
|
$
|
28,354
|
|
|
|
53,463
|
|
|
|
$
|
530
|
|
|
|
$
|
4,392
|
|
|
|
10,680
|
|
|
|
$
|
411
|
|
|
|
$
|
248
|
|
|
|
234
|
|
|
|
$
|
1,060
|
|
|
|
$
|
32,994
|
|
|
|
64,377
|
|
|
|
$
|
513
|
|
Autos & Auto Parts
|
|
|
|
3,638
|
|
|
|
6,068
|
|
|
|
600
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,638
|
|
|
|
6,068
|
|
|
|
600
|
|
Chemicals & Plastics
|
|
|
|
34,219
|
|
|
|
43,493
|
|
|
|
787
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
34,219
|
|
|
|
43,493
|
|
|
|
787
|
|
Coal & Coke
|
|
|
|
19,828
|
|
|
|
53,004
|
|
|
|
374
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,428
|
|
|
|
17,711
|
|
|
|
419
|
|
|
|
27,256
|
|
|
|
70,715
|
|
|
|
385
|
|
Food & Kindred Products
|
|
|
|
8,664
|
|
|
|
15,270
|
|
|
|
567
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8,664
|
|
|
|
15,270
|
|
|
|
567
|
|
Intermodal
|
|
|
|
2
|
|
|
|
29
|
|
|
|
69
|
|
|
|
17,136
|
|
|
|
15,608
|
|
|
|
1,098
|
|
|
|
70,955
|
|
|
|
215,644
|
|
|
|
329
|
|
|
|
88,093
|
|
|
|
231,281
|
|
|
|
381
|
|
Lumber & Forest Products
|
|
|
|
20,062
|
|
|
|
34,684
|
|
|
|
578
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
20,062
|
|
|
|
34,684
|
|
|
|
578
|
|
Metallic Ores
|
|
|
|
4,738
|
|
|
|
6,042
|
|
|
|
784
|
|
|
|
4,538
|
|
|
|
3,308
|
|
|
|
1,372
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9,276
|
|
|
|
9,350
|
|
|
|
992
|
|
Metals
|
|
|
|
23,963
|
|
|
|
29,683
|
|
|
|
807
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
23,963
|
|
|
|
29,683
|
|
|
|
807
|
|
Minerals & Stone
|
|
|
|
26,996
|
|
|
|
49,724
|
|
|
|
543
|
|
|
|
1,870
|
|
|
|
16,572
|
|
|
|
113
|
|
|
|
15,473
|
|
|
|
42,071
|
|
|
|
368
|
|
|
|
44,339
|
|
|
|
108,367
|
|
|
|
409
|
|
Petroleum Products
|
|
|
|
18,167
|
|
|
|
26,605
|
|
|
|
683
|
|
|
|
312
|
|
|
|
77
|
|
|
|
4,052
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18,479
|
|
|
|
26,682
|
|
|
|
693
|
|
Pulp & Paper
|
|
|
|
28,108
|
|
|
|
43,206
|
|
|
|
651
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
28,108
|
|
|
|
43,206
|
|
|
|
651
|
|
Waste
|
|
|
|
4,688
|
|
|
|
9,957
|
|
|
|
471
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,688
|
|
|
|
9,957
|
|
|
|
471
|
|
Other
|
|
|
|
5,008
|
|
|
|
17,000
|
|
|
|
295
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,008
|
|
|
|
17,000
|
|
|
|
295
|
|
Totals
|
|
|
|
$
|
226,435
|
|
|
|
388,228
|
|
|
|
$
|
583
|
|
|
|
$
|
28,248
|
|
|
|
46,245
|
|
|
|
$
|
611
|
|
|
|
$
|
94,104
|
|
|
|
275,660
|
|
|
|
$
|
341
|
|
|
|
$
|
348,787
|
|
|
|
710,133
|
|
|
|
$
|
491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
|
Australian Operations is 51.1% owned by G&W as of December 1, 2016.
|
|
**
|
|
|
Represents physical railcars and the estimated railcar equivalents
of commodities transported by metric ton or other measure, as well
as intermodal units.
|
|
|
|
|
|
|
|
GENESEE & WYOMING INC. AND SUBSIDIARIES
FREIGHT
REVENUES, CARLOADS AND AVERAGE REVENUES PER CARLOAD
COMPARISON
BY COMMODITY GROUP
(dollars in thousands, except average
revenues per carload)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31, 2016
|
|
|
|
North American Operations
|
|
|
Australian Operations*
|
|
|
U.K./European Operations
|
|
|
Total Operations
|
|
Commodity Group
|
|
|
|
Freight
Revenues
|
|
|
Carloads**
|
|
|
Average
Revenues
Per
Carload
|
|
|
Freight
Revenues
|
|
|
Carloads**
|
|
|
Average
Revenues
Per
Carload
|
|
|
Freight
Revenues
|
|
|
Carloads**
|
|
|
Average
Revenues
Per
Carload
|
|
|
Freight
Revenues
|
|
|
Carloads**
|
|
|
Average
Revenues
Per
Carload
|
|
Agricultural Products
|
|
|
|
$
|
115,627
|
|
|
|
217,038
|
|
|
|
$
|
533
|
|
|
|
$
|
17,511
|
|
|
|
43,362
|
|
|
|
$
|
404
|
|
|
|
$
|
2,465
|
|
|
|
2,552
|
|
|
|
$
|
966
|
|
|
|
$
|
135,603
|
|
|
|
262,952
|
|
|
|
$
|
516
|
|
Autos & Auto Parts
|
|
|
|
18,259
|
|
|
|
30,308
|
|
|
|
602
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18,259
|
|
|
|
30,308
|
|
|
|
602
|
|
Chemicals & Plastics
|
|
|
|
137,712
|
|
|
|
175,316
|
|
|
|
786
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
137,712
|
|
|
|
175,316
|
|
|
|
786
|
|
Coal & Coke
|
|
|
|
74,664
|
|
|
|
221,001
|
|
|
|
338
|
|
|
|
11,112
|
|
|
|
35,203
|
|
|
|
316
|
|
|
|
14,982
|
|
|
|
40,117
|
|
|
|
373
|
|
|
|
100,758
|
|
|
|
296,321
|
|
|
|
340
|
|
Food & Kindred Products
|
|
|
|
33,549
|
|
|
|
60,874
|
|
|
|
551
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
33,549
|
|
|
|
60,874
|
|
|
|
551
|
|
Intermodal
|
|
|
|
99
|
|
|
|
1,382
|
|
|
|
72
|
|
|
|
66,761
|
|
|
|
59,688
|
|
|
|
1,118
|
|
|
|
262,977
|
|
|
|
904,783
|
|
|
|
291
|
|
|
|
329,837
|
|
|
|
965,853
|
|
|
|
341
|
|
Lumber & Forest Products
|
|
|
|
83,509
|
|
|
|
138,096
|
|
|
|
605
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
170
|
|
|
|
473
|
|
|
|
359
|
|
|
|
83,679
|
|
|
|
138,569
|
|
|
|
604
|
|
Metallic Ores
|
|
|
|
16,819
|
|
|
|
21,697
|
|
|
|
775
|
|
|
|
16,874
|
|
|
|
13,807
|
|
|
|
1,222
|
|
|
|
100
|
|
|
|
201
|
|
|
|
498
|
|
|
|
33,793
|
|
|
|
35,705
|
|
|
|
946
|
|
Metals
|
|
|
|
103,799
|
|
|
|
137,898
|
|
|
|
753
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
103,799
|
|
|
|
137,898
|
|
|
|
753
|
|
Minerals & Stone
|
|
|
|
114,185
|
|
|
|
197,849
|
|
|
|
577
|
|
|
|
7,634
|
|
|
|
64,060
|
|
|
|
119
|
|
|
|
56,631
|
|
|
|
155,890
|
|
|
|
363
|
|
|
|
178,450
|
|
|
|
417,799
|
|
|
|
427
|
|
Petroleum Products
|
|
|
|
70,519
|
|
|
|
102,718
|
|
|
|
687
|
|
|
|
730
|
|
|
|
275
|
|
|
|
2,655
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
71,249
|
|
|
|
102,993
|
|
|
|
692
|
|
Pulp & Paper
|
|
|
|
104,523
|
|
|
|
163,595
|
|
|
|
639
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
104,523
|
|
|
|
163,595
|
|
|
|
639
|
|
Waste
|
|
|
|
20,835
|
|
|
|
44,922
|
|
|
|
464
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
20,835
|
|
|
|
44,922
|
|
|
|
464
|
|
Other
|
|
|
|
19,520
|
|
|
|
61,559
|
|
|
|
317
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
19,520
|
|
|
|
61,559
|
|
|
|
317
|
|
Totals
|
|
|
|
$
|
913,619
|
|
|
|
1,574,253
|
|
|
|
$
|
580
|
|
|
|
$
|
120,622
|
|
|
|
216,395
|
|
|
|
$
|
557
|
|
|
|
$
|
337,325
|
|
|
|
1,104,016
|
|
|
|
$
|
306
|
|
|
|
$
|
1,371,566
|
|
|
|
2,894,664
|
|
|
|
$
|
474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31, 2015
|
|
|
|
North American Operations
|
|
|
Australian Operations*
|
|
|
U.K./European Operations
|
|
|
Total Operations
|
|
Commodity Group
|
|
|
|
Freight
Revenues
|
|
|
Carloads**
|
|
|
Average
Revenues
Per
Carload
|
|
|
Freight
Revenues
|
|
|
Carloads**
|
|
|
Average
Revenues
Per
Carload
|
|
|
Freight
Revenues
|
|
|
Carloads**
|
|
|
Average
Revenues
Per
Carload
|
|
|
Freight
Revenues
|
|
|
Carloads**
|
|
|
Average
Revenues
Per
Carload
|
|
Agricultural Products
|
|
|
|
$
|
123,116
|
|
|
|
216,500
|
|
|
|
$
|
569
|
|
|
|
$
|
22,614
|
|
|
|
51,534
|
|
|
|
$
|
439
|
|
|
|
$
|
520
|
|
|
|
610
|
|
|
|
$
|
852
|
|
|
|
$
|
146,250
|
|
|
|
268,644
|
|
|
|
$
|
544
|
|
Autos & Auto Parts
|
|
|
|
17,313
|
|
|
|
27,738
|
|
|
|
624
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17,313
|
|
|
|
27,738
|
|
|
|
624
|
|
Chemicals & Plastics
|
|
|
|
140,400
|
|
|
|
179,002
|
|
|
|
784
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
140,400
|
|
|
|
179,002
|
|
|
|
784
|
|
Coal & Coke
|
|
|
|
93,541
|
|
|
|
267,258
|
|
|
|
350
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
24,026
|
|
|
|
61,144
|
|
|
|
393
|
|
|
|
117,567
|
|
|
|
328,402
|
|
|
|
358
|
|
Food & Kindred Products
|
|
|
|
34,899
|
|
|
|
61,145
|
|
|
|
571
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
34,899
|
|
|
|
61,145
|
|
|
|
571
|
|
Intermodal
|
|
|
|
9
|
|
|
|
107
|
|
|
|
84
|
|
|
|
71,429
|
|
|
|
61,659
|
|
|
|
1,158
|
|
|
|
227,527
|
|
|
|
692,304
|
|
|
|
329
|
|
|
|
298,965
|
|
|
|
754,070
|
|
|
|
396
|
|
Lumber & Forest Products
|
|
|
|
80,209
|
|
|
|
137,009
|
|
|
|
585
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
80,209
|
|
|
|
137,009
|
|
|
|
585
|
|
Metallic Ores
|
|
|
|
19,756
|
|
|
|
24,812
|
|
|
|
796
|
|
|
|
44,204
|
|
|
|
26,915
|
|
|
|
1,642
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
63,960
|
|
|
|
51,727
|
|
|
|
1,236
|
|
Metals
|
|
|
|
103,898
|
|
|
|
133,915
|
|
|
|
776
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
103,898
|
|
|
|
133,915
|
|
|
|
776
|
|
Minerals & Stone
|
|
|
|
116,537
|
|
|
|
209,957
|
|
|
|
555
|
|
|
|
7,306
|
|
|
|
60,490
|
|
|
|
121
|
|
|
|
52,596
|
|
|
|
133,656
|
|
|
|
394
|
|
|
|
176,439
|
|
|
|
404,103
|
|
|
|
437
|
|
Petroleum Products
|
|
|
|
67,584
|
|
|
|
102,759
|
|
|
|
658
|
|
|
|
1,297
|
|
|
|
307
|
|
|
|
4,225
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
68,881
|
|
|
|
103,066
|
|
|
|
668
|
|
Pulp & Paper
|
|
|
|
113,830
|
|
|
|
176,543
|
|
|
|
645
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
113,830
|
|
|
|
176,543
|
|
|
|
645
|
|
Waste
|
|
|
|
18,078
|
|
|
|
38,927
|
|
|
|
464
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18,078
|
|
|
|
38,927
|
|
|
|
464
|
|
Other
|
|
|
|
19,858
|
|
|
|
68,728
|
|
|
|
289
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
19,858
|
|
|
|
68,728
|
|
|
|
289
|
|
Totals
|
|
|
|
$
|
949,028
|
|
|
|
1,644,400
|
|
|
|
$
|
577
|
|
|
|
$
|
146,850
|
|
|
|
200,905
|
|
|
|
$
|
731
|
|
|
|
$
|
304,669
|
|
|
|
887,714
|
|
|
|
$
|
343
|
|
|
|
$
|
1,400,547
|
|
|
|
2,733,019
|
|
|
|
$
|
512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
|
Australian Operations is 51.1% owned by G&W as of December 1, 2016.
|
|
**
|
|
|
Represents physical railcars and the estimated railcar equivalents
of commodities transported by metric ton or other measure, as well
as intermodal units.
|
|
|
|
|
|
Non-GAAP Financial Measures
This earnings release contains references to adjusted operating income,
adjusted net income attributable to G&W, adjusted diluted earnings per
common share attributable to G&W and free cash flow, which are “non-GAAP
financial measures” as this term is defined in Item 10(e) of Regulation
S-K under the Securities Act of 1933 and the Securities Exchange Act of
1934 and Regulation G under the Securities Exchange Act of 1934. In
accordance with these rules, G&W has reconciled these non-GAAP financial
measures to their most directly comparable U.S. GAAP measures.
Management views these non-GAAP financial measures as important measures
of G&W’s operating performance or, in the case of free cash flow, an
important financial measure of how well G&W is managing its assets and a
useful indicator of cash flow that may be available for discretionary
use by G&W. Management also views these non-GAAP financial measures as a
way to assess comparability between periods. Key limitations of the free
cash flow measure include the assumptions that G&W will be able to
refinance its existing debt when it matures and meet other cash flow
obligations from financing activities, such as principal payments on
debt.
These non-GAAP financial measures are not intended to represent, and
should not be considered more meaningful than, or as an alternative to,
their most directly comparable GAAP measures. These non-GAAP financial
measures may be different from similarly-titled non-GAAP financial
measures used by other companies.
The following tables set forth reconciliations of each of these non-GAAP
financial measures to their most directly comparable GAAP measure (in
millions, except percentages and per share amounts).
Reconciliations of Non-GAAP Financial Measures
|
|
|
|
|
|
|
Adjusted Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
North
American
Operations
|
|
|
Australian
Operations
|
|
|
U.K./
European
Operations
|
|
|
Total
Operations
|
|
Operating revenues
|
|
|
|
$
|
322.2
|
|
|
|
$
|
61.4
|
|
|
|
$
|
133.0
|
|
|
|
$
|
516.5
|
|
|
Operating expenses
|
|
|
|
238.8
|
|
|
|
58.5
|
|
|
|
165.6
|
|
|
|
463.0
|
|
|
Operating income/(loss)(a)
|
|
|
|
$
|
83.4
|
|
|
|
$
|
2.8
|
|
|
|
$
|
(32.6
|
)
|
|
|
$
|
53.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
$
|
238.8
|
|
|
|
$
|
58.5
|
|
|
|
$
|
165.6
|
|
|
|
$
|
463.0
|
|
|
ERS impairment and related costs
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(21.5
|
)
|
|
|
(21.5
|
)
|
|
U.K. coal railcar leases
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(10.5
|
)
|
|
|
(10.5
|
)
|
|
Corporate development and related
costs
|
|
|
|
(4.0
|
)
|
|
|
(10.7
|
)
|
|
|
(1.3
|
)
|
|
|
(16.0
|
)
|
|
Net loss on sale and impairment of
assets
|
|
|
|
(0.6
|
)
|
|
|
(0.3
|
)
|
|
|
(0.1
|
)
|
|
|
(1.1
|
)
|
|
Restructuring costs
|
|
|
|
(0.1
|
)
|
|
|
—
|
|
|
|
(1.8
|
)
|
|
|
(1.9
|
)
|
|
Adjusted operating expenses
|
|
|
|
$
|
234.1
|
|
|
|
$
|
47.5
|
|
|
|
$
|
130.5
|
|
|
|
$
|
412.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income
|
|
|
|
$
|
88.1
|
|
|
|
$
|
13.9
|
|
|
|
$
|
2.5
|
|
|
|
$
|
104.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income from take-or-pay contract
|
|
|
|
$
|
(10.0
|
)
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income, excluding
take-or-pay contract
|
|
|
|
$
|
78.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
North
American
Operations
|
|
|
Australian
Operations
|
|
|
U.K./
European
Operations
|
|
|
Total
Operations
|
|
Operating revenues
|
|
|
|
$
|
298.6
|
|
|
|
$
|
55.2
|
|
|
|
$
|
161.0
|
|
|
|
$
|
514.9
|
|
|
Operating expenses
|
|
|
|
225.4
|
|
|
|
44.7
|
|
|
|
150.1
|
|
|
|
420.2
|
|
|
Operating income(a)
|
|
|
|
$
|
73.2
|
|
|
|
$
|
10.5
|
|
|
|
$
|
10.9
|
|
|
|
$
|
94.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
$
|
225.4
|
|
|
|
$
|
44.7
|
|
|
|
$
|
150.1
|
|
|
|
$
|
420.2
|
|
|
Corporate development and related
costs
|
|
|
|
(0.6
|
)
|
|
|
(0.5
|
)
|
|
|
(0.2
|
)
|
|
|
(1.3
|
)
|
|
Net gain on sale of assets
|
|
|
|
0.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.3
|
|
|
Freightliner acquisition/integration costs
|
|
|
|
(0.5
|
)
|
|
|
—
|
|
|
|
(0.7
|
)
|
|
|
(1.2
|
)
|
|
Out of period benefit of final allocation
of fair values to
Freightliner's assets & liabilities
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.6
|
|
|
|
2.6
|
|
|
Adjusted operating expenses
|
|
|
|
$
|
224.6
|
|
|
|
$
|
44.2
|
|
|
|
$
|
151.9
|
|
|
|
$
|
420.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income
|
|
|
|
$
|
74.1
|
|
|
|
$
|
11.0
|
|
|
|
$
|
9.1
|
|
|
|
$
|
94.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
North
American
Operations
|
|
|
Australian
Operations
|
|
|
U.K./
European
Operations
|
|
|
Total
Operations
|
|
Operating revenues
|
|
|
|
$
|
1,236.8
|
|
|
|
$
|
222.6
|
|
|
|
$
|
542.2
|
|
|
|
$
|
2,001.5
|
|
|
Operating expenses
|
|
|
|
917.2
|
|
|
|
217.8
|
|
|
|
576.9
|
|
|
|
1,711.9
|
|
|
Operating income/(loss)(a)
|
|
|
|
$
|
319.6
|
|
|
|
$
|
4.8
|
|
|
|
$
|
(34.7
|
)
|
|
|
$
|
289.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
$
|
917.2
|
|
|
|
$
|
217.8
|
|
|
|
$
|
576.9
|
|
|
|
$
|
1,711.9
|
|
|
Corporate development and related
costs
|
|
|
|
(7.2
|
)
|
|
|
(14.7
|
)
|
|
|
(1.5
|
)
|
|
|
(23.3
|
)
|
|
Australia impairment and related costs
|
|
|
|
—
|
|
|
|
(21.1
|
)
|
|
|
—
|
|
|
|
(21.1
|
)
|
|
ERS impairment and related costs
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(21.5
|
)
|
|
|
(21.5
|
)
|
|
U.K. coal railcar leases
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(10.5
|
)
|
|
|
(10.5
|
)
|
|
Restructuring costs
|
|
|
|
(0.9
|
)
|
|
|
(0.8
|
)
|
|
|
(6.5
|
)
|
|
|
(8.2
|
)
|
|
Net gain/(loss) on sale and impairment
of assets
|
|
|
|
0.2
|
|
|
|
(0.3
|
)
|
|
|
0.1
|
|
|
|
(0.1
|
)
|
|
Adjusted operating expenses
|
|
|
|
$
|
909.3
|
|
|
|
$
|
180.8
|
|
|
|
$
|
537.0
|
|
|
|
$
|
1,627.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income
|
|
|
|
$
|
327.4
|
|
|
|
$
|
41.8
|
|
|
|
$
|
5.1
|
|
|
|
$
|
374.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
North
American
Operations
|
|
|
Australian
Operations
|
|
|
U.K./
European
Operations
|
|
|
Total
Operations
|
|
Operating revenues
|
|
|
|
$
|
1,241.8
|
|
|
|
$
|
243.0
|
|
|
|
$
|
515.6
|
|
|
|
$
|
2,000.4
|
|
|
Operating expenses
|
|
|
|
944.3
|
|
|
|
188.1
|
|
|
|
483.7
|
|
|
|
1,616.1
|
|
|
Operating income(a)
|
|
|
|
$
|
297.5
|
|
|
|
$
|
54.8
|
|
|
|
$
|
31.9
|
|
|
|
$
|
384.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
$
|
944.3
|
|
|
|
$
|
188.1
|
|
|
|
$
|
483.7
|
|
|
|
$
|
1,616.1
|
|
|
Corporate development and related
costs
|
|
|
|
(1.4
|
)
|
|
|
(2.7
|
)
|
|
|
(0.3
|
)
|
|
|
(4.4
|
)
|
|
Freightliner acquisition/integration costs
|
|
|
|
(14.5
|
)
|
|
|
—
|
|
|
|
(0.7
|
)
|
|
|
(15.3
|
)
|
|
Net gain on sale of assets
|
|
|
|
2.0
|
|
|
|
—
|
|
|
|
0.2
|
|
|
|
2.3
|
|
|
Adjusted operating expenses
|
|
|
|
$
|
930.5
|
|
|
|
$
|
185.4
|
|
|
|
$
|
482.9
|
|
|
|
$
|
1,598.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income
|
|
|
|
$
|
311.3
|
|
|
|
$
|
57.5
|
|
|
|
$
|
32.7
|
|
|
|
$
|
401.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
|
Operating income is calculated as operating revenues less operating
expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income and Adjusted Diluted Earnings Per Common
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2016
|
|
|
|
Income Before
Income Taxes
|
|
|
Provision for
Income Taxes
|
|
|
Net Income
Attributable
to G&W
|
|
|
Diluted EPS
Attributable
to G&W
|
|
As reported
|
|
|
|
$
|
28.7
|
|
|
|
$
|
(19.8
|
)
|
|
|
$
|
8.9
|
|
|
|
$
|
0.15
|
|
Add back certain items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ERS impairment and related charges
|
|
|
|
21.5
|
|
|
|
—
|
|
|
|
21.5
|
|
|
|
0.37
|
|
U.K. coal railcar leases
|
|
|
|
10.5
|
|
|
|
(1.9
|
)
|
|
|
8.6
|
|
|
|
0.15
|
|
Corporate development and related costs
|
|
|
|
19.2
|
|
|
|
(3.0
|
)
|
|
|
16.2
|
|
|
|
0.28
|
|
Net loss on sale and impairment of
assets
|
|
|
|
1.1
|
|
|
|
(0.3
|
)
|
|
|
0.8
|
|
|
|
0.01
|
|
Restructuring costs
|
|
|
|
1.9
|
|
|
|
(0.4
|
)
|
|
|
1.4
|
|
|
|
0.02
|
|
Write-off of debt issuance costs
|
|
|
|
2.2
|
|
|
|
(0.7
|
)
|
|
|
0.8
|
|
|
|
0.01
|
|
As adjusted
|
|
|
|
$
|
85.1
|
|
|
|
$
|
(26.1
|
)
|
|
|
$
|
58.3
|
|
|
|
$
|
0.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2015
|
|
|
|
Income Before
Income Taxes
|
|
|
Provision for
Income Taxes
|
|
|
Net Income
|
|
|
Diluted EPS
|
|
As reported
|
|
|
|
$
|
77.8
|
|
|
|
$
|
7.1
|
|
|
|
$
|
84.9
|
|
|
|
$
|
1.47
|
|
|
Add back certain items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate development and related costs
|
|
|
|
1.3
|
|
|
|
(0.4
|
)
|
|
|
0.8
|
|
|
|
0.01
|
|
|
Net gain on sale of assets
|
|
|
|
(0.3
|
)
|
|
|
0.1
|
|
|
|
(0.2
|
)
|
|
|
—
|
|
|
Freightliner acquisition/integration
related costs
|
|
|
|
1.2
|
|
|
|
(0.4
|
)
|
|
|
0.9
|
|
|
|
0.02
|
|
|
Out of period benefit of final allocation
of fair values to
Freightliner's assets &
liabilities
|
|
|
|
(2.0
|
)
|
|
|
0.4
|
|
|
|
(1.6
|
)
|
|
|
(0.03
|
)
|
|
Q1-Q3 2015 Short Line Tax Credit
|
|
|
|
—
|
|
|
|
(19.7
|
)
|
|
|
(19.7
|
)
|
|
|
(0.34
|
)
|
|
Impact of reduction in U.K. effective tax
rate
|
|
|
|
—
|
|
|
|
(9.7
|
)
|
|
|
(9.7
|
)
|
|
|
(0.17
|
)
|
|
Application of full year effective tax rate
to Q1 - Q3 2015
results
|
|
|
|
—
|
|
|
|
1.3
|
|
|
|
1.3
|
|
|
|
0.02
|
|
|
As adjusted
|
|
|
|
$
|
78.1
|
|
|
|
$
|
(21.3
|
)
|
|
|
$
|
56.8
|
|
|
|
$
|
0.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2016
|
|
|
|
Income Before
Income Taxes
|
|
|
Provision for
Income Taxes
|
|
|
Net Income
Attributable
to G&W
|
|
|
Diluted EPS
Attributable
to G&W
|
|
As reported
|
|
|
|
$
|
215.5
|
|
|
|
$
|
(74.4
|
)
|
|
|
$
|
141.1
|
|
|
|
$
|
2.42
|
|
|
Add back certain items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate development and related costs
|
|
|
|
26.6
|
|
|
|
(5.2
|
)
|
|
|
21.4
|
|
|
|
0.37
|
|
|
Net loss on sale and impairment of
assets
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Australia impairment and related costs
|
|
|
|
21.1
|
|
|
|
(4.4
|
)
|
|
|
16.8
|
|
|
|
0.29
|
|
|
ERS impairment and related costs
|
|
|
|
21.5
|
|
|
|
—
|
|
|
|
21.5
|
|
|
|
0.37
|
|
|
U.K. coal railcar leases
|
|
|
|
10.5
|
|
|
|
(1.9
|
)
|
|
|
8.6
|
|
|
|
0.15
|
|
|
Restructuring costs
|
|
|
|
8.2
|
|
|
|
(1.7
|
)
|
|
|
6.5
|
|
|
|
0.11
|
|
|
Write-off of debt issuance costs
|
|
|
|
2.2
|
|
|
|
(0.7
|
)
|
|
|
0.8
|
|
|
|
0.01
|
|
|
Impact of reduction in U.K. effective tax
rate
|
|
|
|
—
|
|
|
|
(4.3
|
)
|
|
|
(4.3
|
)
|
|
|
(0.07
|
)
|
|
As adjusted
|
|
|
|
$
|
305.7
|
|
|
|
$
|
(92.5
|
)
|
|
|
$
|
212.4
|
|
|
|
$
|
3.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2015
|
|
|
|
Income Before
Income Taxes
|
|
|
Provision for
Income Taxes
|
|
|
Net Income
|
|
|
Diluted EPS
|
|
As reported
|
|
|
|
$
|
300.9
|
|
|
|
$
|
(75.9
|
)
|
|
|
$
|
225.0
|
|
|
|
$
|
3.89
|
|
|
Add back certain items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate development and related costs
|
|
|
|
6.4
|
|
|
|
(2.2
|
)
|
|
|
4.3
|
|
|
|
0.07
|
|
|
Freightliner acquisition/integration
related costs
|
|
|
|
15.3
|
|
|
|
(4.0
|
)
|
|
|
11.2
|
|
|
|
0.19
|
|
|
Net gain on sale of assets
|
|
|
|
(2.3
|
)
|
|
|
0.6
|
|
|
|
(1.7
|
)
|
|
|
(0.03
|
)
|
|
Loss on settlement of Freightliner
acquisition-related
foreign currency
forward purchase contracts
|
|
|
|
18.7
|
|
|
|
(7.1
|
)
|
|
|
11.6
|
|
|
|
0.20
|
|
|
Impact of reduction in U.K. effective tax
rate
|
|
|
|
—
|
|
|
|
(9.7
|
)
|
|
|
(9.7
|
)
|
|
|
(0.17
|
)
|
|
As adjusted
|
|
|
|
$
|
339.0
|
|
|
|
$
|
(98.3
|
)
|
|
|
$
|
240.7
|
|
|
|
$
|
4.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
Net cash provided by operating activities
|
|
|
|
$
|
407.0
|
|
|
|
$
|
475.1
|
|
|
Net cash used in investing activities(a)
|
|
|
|
(1,135.0
|
)
|
|
|
(1,074.3
|
)
|
|
Net cash used for acquisitions
|
|
|
|
987.3
|
|
|
|
792.2
|
|
|
Free cash flow
|
|
|
|
$
|
259.3
|
|
|
|
$
|
193.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
|
The twelve months ended December 31, 2016 and 2015 included $24.5
million and $65.6 million, respectively, of new business investments.
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170208005328/en/
Copyright Business Wire 2017
Source: Business Wire
(February 8, 2017 - 6:00 AM EST)
News by QuoteMedia
www.quotemedia.com |
