Genesee & Wyoming (GWR) Reports Q1 EPS of $0.70, Beats on Revenues

Genesee & Wyoming (NYSE: GWR) reported Q1 EPS of $0.70, versus $0.73 reported last year. Revenue for the quarter came in at $574.7 million versus the consensus estimate of $572.55 million.

Jack Hellmann, Chairman, President and CEO of G&W, commented, “G&W reported diluted earnings per share of $1.19 in the first quarter of 2018, or $0.70 per diluted share excluding the retroactive benefit from the U.S. Short Line Tax Credit for 2017. Although our adjusted diluted EPS increased 32%, our financial results in North America were adversely impacted by congestion at several connecting Class I railroads that limited car supply as well as by lower utility coal shipments in the Midwest. Meanwhile, our results in Australia and the U.K./Europe were consistent with our expectations.”

“Our North American business strengthened in March and we see a favorable outlook for rates and volume for the remainder of 2018, despite ongoing pockets of rail system congestion. In Australia, we continue to see an uplift in our business in the second half of 2018 as we take delivery of new rail cars for spot coal movements in the Hunter Valley of New South Wales.”

First Quarter 2018 Consolidated Highlights Compared with First Quarter 2017

• Operating revenues increased 10.7% to $574.7 million from $519.1 million.
• Reported operating income increased 14.5% to $86.9 million; Adjusted operating income increased 2.7% to $87.4 million.(1)
• Reported diluted earnings per common share (EPS) increased to $1.19 with 62.9 million weighted average shares outstanding, compared with reported diluted EPS in the first quarter of 2017 of $0.42 with 62.4 million weighted average shares outstanding; Adjusted diluted EPS increased 32.1% to $0.70.(1)
• Reported net income and diluted EPS included a $31.6 million, or $0.50 per share, income tax benefit associated with the U.S. Short Line Tax Credit for fiscal year 2017 that was enacted in February 2018.
• Net cash provided by operating activities increased $16.3 million to $101.4 million; Adjusted free cash flow attributable to G&W decreased $7.9 million to $43.1 million, primarily due to the timing of core capital expenditures.(1)
• G&W repurchased 792,921 shares of its Class A Common Stock for $57.4 million during the first quarter of 2018.

For earnings history and earnings-related data on Genesee & Wyoming (GWR) click here.

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