Genesee & Wyoming Inc. has a market cap of $1.91 billion; its shares were traded at around $46.2 with a P/E ratio of 25.11 and P/S ratio of 3.51. Genesee & Wyoming Inc. had an annual average earning growth of 13.4% over the past 10 years.GWR is in the portfolios of John Keeley of Keeley Fund Management, Ron Baron of Baron Funds, David Dreman of Dreman Value Management, Third Avenue Management, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations: Freight revenues increased $12.7 million, or 15.3%, to $95.9 million in the three months ended September 30, 2010, compared with $83.2 million in the three months ended September 30, 2009. The increase in freight revenues included a benefit of $0.9 million due to the appreciation of the Australian and Canadian dollars relative to the United States dollar. Excluding the impact from foreign currency appreciation, freight revenues increased by $11.8 million, or 14.2%.
Operating income in the three months ended September 30, 2010, was $38.5 million, compared with $31.1 million in the three months ended September 30, 2009, an increase of $7.4 million. Our operating ratio, defined as operating expenses divided by operating revenues, was 75.4% in the three months ended September 30, 2010, compared with 77.2% in the three months ended September 30, 2009. Operating income in the three months ended September 30, 2010, benefited from $2.4 million in gains on the sale of assets and the reversal of $2.3 million of previously accrued restructuring charges associated with Huron Central Railway, Inc. (HCRY), partially offset by FreightLink acquisition-related expenses of $3.0 million. For the three months ended September 30, 2009, operating income benefited from a $2.6 million gain on insurance recoveries and a $0.6 million gain on the sale of assets, partially offset by a $0.7 million impairment of assets.
During the nine months ended September 30, 2010, we generated $127.2 million in cash flow from operating activities from continuing operations. We purchased $57.6 million of property and equipment, received $11.0 million in cash from outside parties for capital spending completed in 2010 and $14.2 million in cash from outside parties for capital spending completed in prior years. We also received $4.1 million in proceeds from the disposition of property and equipment and $0.2 million in proceeds from the sale of an investment.
rate), which represents the present value of a A$50 million (or $48 million at the September 30, 2010 exchange rate) non-interest bearing loan due in 2054. On January 1, 2009, we adopted certain changes in United States Generally Accepted Accounting Principles for the accounting for mergers and acquisitions. Under the new accounting standards, transaction costs associated with acquisitions will be expensed as incurred, rather than capitalized. We expect to incur FreightLink acquisition-related expenses totaling approximately A$23 million (or $22 million at the September 30, 2010 exchange rate), in the quarter in which the acquisition closes, principally related to the payment of stamp duty (an Australian asset transfer tax). Through the nine months ended September 30, 2010, we incurred $4.2 million of expenses related to the pending FreightLink acquisition. The acquisition is contingent upon customary closing conditions, including the receipt of certain government approvals. We expect to close the acquisition and to commence operations in the fourth quarter of 2010.
Huron Central Railway Inc: In June 2009, we announced that our subsidiary, HCRY, intended to cease its operations in the third quarter of 2009. As a result, in the second quarter of 2009, we recorded charges of $5.4 million after-tax associated with HCRY, reflecting a non-cash write-down of non-current assets of $6.7 million and restructuring charges of $2.3 million, partially offset by a tax benefit of $3.6 million. In September 2010, the governments of Canada and Ontario agreed to provide C$30 million (or $29 million at the September 30, 2010 exchange rate) to fund infrastructure improvements that will enable HCRY to continue operations on a long-term basis. In addition, HCRY expects to fund approximately $3 million for infrastructure improvements. As a result, we reversed $2.3 million ($1.5 million after-tax) of accrued restructuring charges related to HCRY in September 2010, as HCRY no longer intends to cease its operations.
Operating revenues were $156.5 million in the three months ended September 30, 2010, compared with $136.4 million in the three months ended September 30, 2009, an increase of $20.0 million, or 14.7%. The increase in operating revenues included increases of $12.7 million in freight revenues and $7.3 million in non-freight revenues. The $20.0 million increase in operating revenues included a net benefit of $1.9 million from the change in foreign currency exchange rates.
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