Genesee & Wyoming posts earnings growth in Q4 2016
Genesee & Wyoming Inc.'s (G&W) fourth-quarter 2016 operating revenue rose 0.3 percent to $516.5 million compared with the same quarter a year ago, the company reported yesterday. The Q4 2016 operating revenue included the recognition of $10 million in revenue from a multi-year take-or-pay volume shortfall under a crude-by-rail contract. Adjusted earnings per share in the quarter rose 1 percent to 99 cents compared with 98 cents in the previous year's quarter, G&W said in a press release. The company wrapped up 2016 with a busy fourth quarter, which included the acquisitions of Providence and Worcester Railroad (P&W) in New England and Glencore Rail Pty Ltd. in Australia, and the announcement of an agreement to acquire Pentalver Transport Ltd. in the United Kingdom. "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," said President and Chief Executive Officer Jack Hellmann. "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," Hellmann said. "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." In G&W's North American operations, the company's same railroad traffic increase of 2 percent and "good expense management" at each of its eight operating regions helped boost operating income 14 percent to $83.4 million, or 5 percent excluding the take-or-pay contract and corporate development costs, Hellmann said.