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Reckson Associates Realty Corp Reports Operating Results (10-Q)

August 05, 2010 | About:
10qk

10qk

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Reckson

Associates Realty Corp (RA) filed Quarterly Report for the period ended 2010-06-30.

Reckson

Associates Realty Corp has a market cap of $617.8 million; its shares were traded at around $11.26 with a P/E ratio of 66.3 and P/S ratio of 1.5. RA is in the portfolios of George Soros of Soros Fund Management LLC, John Keeley of Keeley Fund Management, Ron Baron of Baron Funds, Steven Cohen of SAC Capital Advisors, Manning & Napier Advisors, Inc.

Highlight of Business Operations:

Net loss in the three months ended June 30, 2010, was $4.2 million, compared with net income of $18.2 million in the three months ended June 30, 2009. Loss from continuing operations in the three months ended June 30, 2010, was $4.6 million, compared with income from continuing operations of $5.1 million in the three months ended June 30, 2009. Loss from continuing operations for the three months ended June 30, 2010 included $8.4 million of charges related to the extinguishment of $74 million of senior secured notes.

Our operating ratio, defined as total operating expenses divided by total operating revenue, was 82.1% in the six months ended June 30, 2010, compared with an operating ratio of 78.2% in the six months ended June 30, 2009. This increase was primarily due to an increase in labor and benefit expense, diesel fuel prices and the lack of track maintenance credits in 2010. Operating expenses were $188.8 million in the six months ended June 30, 2010, compared with $155.6 million in the six months ended June 30, 2009, an increase of $33.2 million, or 21%.

Net loss in the six months ended June 30, 2010, was $6.7 million, compared with net income of $19.2 million in the six months ended June 30, 2009. Loss from continuing operations in the six months ended June 30, 2010, was $7.4 million, compared with income from continuing operations of $4.9 million in the six months ended June 30, 2009. Loss from continuing operations for the six months ended June 30, 2010 included $8.4 million of charges related to the extinguishment of $74 million of senior secured notes.

Operating revenue increased by $17.6 million, or 18%, to $117.3 million in the three months ended June 30, 2010, from $99.7 million in the three months ended June 30, 2009. Total carloads during the three month period ending June 30, 2010 increased 11% to 216,113 in 2010 from 195,545 in the three months ended June 30, 2009. The increase in operating revenue was due to an increase in carloads, negotiated rate increases, change in commodity mix, the strengthening of the Canadian dollar and an increase in fuel surcharge, which increased $0.8 million from prior year.

Non-freight revenue increased by $3.7 million, or 22%, to $20.8 million in the three months ended June 30, 2010 from $17.1 million in the three months ended June 30, 2009, primarily due to an increase in car repair income, storage revenue and real estate revenue, partially offset by a decrease in demurrage revenue.

Freight revenue was $96.5 million in the three months ended June 30, 2010, compared to $82.6 million in the three months ended June 30, 2009, an increase of $13.9 million or 17%. This increase was primarily due to the net effect of the following:

Read the The complete Report

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