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Reckson Associates Realty Corp Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: July 26, 2012 02:16PM

Reckson Associates Realty Corp (RA) filed Quarterly Report for the period ended 2012-06-30. Railamerica, Inc. has a market cap of $1.25 billion; its shares were traded at around $27.31 with a P/E ratio of 24.8 and P/S ratio of 2.3.



Highlight of Business Operations:

Each of our 45 railroads operates independently with its own customer base. Our railroads are spread out geographically and carry diverse commodities. The diversity in our customer base helps mitigate our exposure to severe downturns in local economies. For the three months ended June 30, 2012, agricultural products, coal and chemicals accounted for 17%, 15% and 11%, respectively, of our carloads. As a percentage of our freight revenue, agricultural products, chemicals, and metallic ores and metals generated 17%, 15%, and 10%, respectively, for the three months ended June 30, 2012. Freight revenue per carload is impacted by several factors including the length of haul.

Our operating ratio, defined as total operating expenses divided by total operating revenue, was 78.1% in the three months ended June 30, 2012 compared to 79.4% in the three months ended June 30, 2011. This decrease was primarily due to favorable operating leverage, improved efficiencies and the absence of impairment charges, partially offset by the absence of track maintenance credits in the second quarter of 2012. Operating expenses were $121.9 million in the three months ended June 30, 2012 compared with $110.5 million in the three months ended June 30, 2011 an increase of $11.4 million, or 10%.

Our operating ratio, defined as total operating expenses divided by total operating revenue, was 77.9% in the six months ended June 30, 2012 compared to 80.0% in the six months ended June 30, 2011. This decrease was primarily due to favorable operating leverage, improved efficiencies, lower depreciation expense and the absence of impairment charges, partially offset by the absence of track maintenance credits in the first six months of 2012. Operating expenses were $233.5 million in the six months ended June 30, 2012 compared with $211.3 million in the six months ended June 30, 2011 an increase of $22.2 million, or 11%. Operating expenses included an impairment charge of $3.2 million in 2011.

Operating revenue increased by $16.9 million, or 12%, to $156.1 million in the three months ended June 30, 2012 from $139.2 million in the three months ended June 30, 2011. The net increase in operating revenue was due to higher non-freight revenue, rate increases, change in commodity mix, an increase in fuel surcharge, which increased $2.2 million from prior year and increased carloads.

Operating revenue increased by $35.4 million, or 13%, to $299.5 million in the six months ended June 30, 2012 from $264.2 million in the six months ended June 30, 2011. Total carloads during the six months ended June 30, 2012 increased 3% to 435,507 from 421,137 in the six months ended June 30, 2011. The net increase in operating revenue was due to rate increases, change in commodity mix, an increase in fuel surcharge, which increased $5.9 million from prior year, higher non-freight revenue, and the increase in carload volume.

Read the The complete Report



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