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Reckson Associates Realty Corp Reports Operating Results (10-K)
Posted by: gurufocus (IP Logged)
Date: February 23, 2012 10:00PM
Reckson Associates Realty Corp (RA) filed Annual Report for the period ended 2011-12-31. Railamerica Inc has a market cap of $1 billion; its shares were traded at around $20.79 with a P/E ratio of 22.8 and P/S ratio of 1.8.
Highlight of Business Operations:Each of our 43 railroads operates independently with its own customer base. Our railroads are spread out geographically and carry diverse commodities. For the year ended December 31, 2011, coal, agricultural products and chemicals accounted for 18%, 15% and 11%, respectively, of our carloads. As a percentage of our freight revenue, which is impacted by several factors including the length of the haul, agricultural products, chemicals and metallic ores and metals generated 16%, 15% and 11%, respectively, for the year ended December 31, 2011.
Freight revenue was $411.2 million in the year ended December 31, 2011, compared to $388.7 million in the year ended December 31, 2010, an increase of $22.4 million, or 6%. This increase was primarily due to the net effect of the following:
Asset sales and a lease termination resulted in net gains of $2.2 million and $25.8 million in the years ended December 31, 2010 and 2009, respectively. The gains on sales of assets in 2010 are primarily due to land and easement sales along our corridor of track. In 2009, we terminated the lease of the OVRR line, which resulted in a gain on disposal of $26.8 million and we sold a portion of track owned by the Central Railroad of Indianapolis at a price set by the STB of $0.4 million, which resulted in a loss on disposition of $1.5 million. We also sold a portion of track owned by the Central Oregon and Pacific Railroad, known as the Coos Bay Line, to the Port of Coos Bay for $16.6 million. The carrying value of this line approximated the sale price; and
rates and other adjustments ($1.2 million) and by an expense relating to stock-based compensation plans ($0.7 million). The overall effective tax rate for continuing operations for the year ended December 31, 2009 was unfavorably impacted by the repatriation of OVRRs Canadian earnings ($15.0 million) and by an increase in the valuation allowance ($4.0 million). These unfavorable adjustments were partially offset by the resolution of the Australian tax audit ($2.5 million), the conversion of certain operating subsidiaries to single member limited liability companies ($1.0 million) and the adjustment of deferred tax balances resulting from a change in tax laws and a change in estimates of the apportioned state rates ($2.3 million). For the years ended December 31, 2010 and 2009 we paid cash taxes of $7.4 million and $3.4 million, respectively.
Cash used in investing activities was $90.1 million for the year ended December 31, 2011, compared to $77.6 million for the year ended December 31, 2010. Cash used in investing activities included cash used for the acquisition of three short line railroads for $12.7 million in 2011 and Atlas Railroad Construction Company for $23.9 million in 2010. Capital expenditures were $130.8 million in the year ended December 31, 2011, compared to $60.3 million in the year ended December 31, 2010. The capital expenditures were partially offset by $37.2 million and $2.5 million of NECR government grant reimbursements in the years ended December 31, 2011 and 2010, respectively. Asset sale/disposition proceeds were $16.4 million, primarily due to scrap sales related to the NECR project for the year ended December 31, 2011 compared to $4.1 million for the year ended December 31, 2010.
Stocks Discussed: RA,