Industry Review: Railroads
The last couple of weeks we have looked at eight different companies within the railroad industry. Here, we look to present a summary of those reviews and directly compare the companies through common-sized statements.
Specifically, we looked at:
Monday, January 8 - Jon - Burlington Northern Santa Fe (BNI)
Tuesday, January 9 - Ben - Union Pacific Corporation (UNP)
Wednesday, January 10 - Jon - Kansas City Southern (KSU)
Thursday, January 11 - Ben - Providence & Worcester Railroad Co (PWX)
Monday, January 15 - Jon - The Greenbriar Companies (GBX)
Tuesday, January 16 - Ben - Genesee & Wyoming Inc. (GWR)
Wednesday, January 17 - Jon - Canadian National Railway (CNI)
Thursday, January 18 - Ben - Norfolk Southern Corporation (NSC)
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| BNI | UNP | KSU | PWX | GBX | GWR | CNI | NSC |
| Defensive? | No | No | No | No | No | No | No | No |
| Enterprising? | Yes | Yes | No | Yes | Yes | No | Yes | Yes |
| Valuation | $67 | $95 | $26 | $18 | $31 | $34 | $71 | $47 |
| Current Price | $77.25 | $95.25 | $30 | $19 | $26.50 | $26.50 | $44 | $52 |
Here is a look at the common-sized Interim Balance Sheet for all of the companies:
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| BNI | UNP | KSU | PWX | GBX | GWR | CNI | NSC |
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| 9/30/2006 | 9/30/2006 | 9/30/2006 | 9/30/2006 | 11/30/2006 | 9/30/2006 | 9/30/2006 | 9/30/2006 |
| Assets |
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| Cash & ST Investments | 0.27 | 1.98 | 2.64 | 2.08 | 1.57 | 21.78 | 0.25 | 3.09 |
| Receivables (Net) | 2.53 | 2.12 | 7.64 | 4.04 | 13.43 | 10.23 | 4.56 | 3.95 |
| Total Inventories | 1.47 | 1.17 | 1.78 | 1.79 | 25.59 | 1.06 | 0.9 | 0.61 |
| Prepaid Expenses | - | - | - | - | - | - | - | - |
| Other Current Assets | 1.91 | 4.53 | 0.83 | 0.35 | 0 | 1.7 | 0.82 | 0.88 |
| Current Assets - Total | 6.18 | 6.5 | 12.89 | 8.27 | 40.59 | 34.77 | 6.54 | 8.53 |
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| Investment In Unconsolidated Subsidiaries | - | 2.33 | - | 0 | - | 0.41 | - | 5.03 |
| Property Plant & Equipment - Net | 87.13 | 89.75 | 53.77 | 91.73 | 38.66 | 49.53 | 89.16 | 80.72 |
| Property Plant & Equipment - Gross | - | 118.23 | - | - | - | - | - | - |
| Less: Accumulated Depreciation | - | 28.48 | - | - | - | - | - | - |
| Other Assets | 6.69 | 3.75 | 33.35 | 0 | 20.76 | 15.29 | 4.3 | 10.75 |
| Intangible Assets | - | - | 30.29 | 0 | 17.37 | 14.35 | 4.3 | - |
| Total Assets | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| Liabilities |
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| Accounts Payable | 9.14 | 1.83 | 4.06 | 2.84 | 20.29 | 9.15 | - | 4.5 |
| ST Debt & Current Portion of LT Debt | 2.37 | 1.08 | 4.24 | 0 | 19.43 | 1.49 | 0.67 | 1.86 |
| Other Accrued Expense | - | 2.33 | 7 | 1.02 | 1.02 | 3.04 | - | - |
| Income Tax | - | 0.74 | - | 0 | - | 7.75 | - | 1.05 |
| Other Current Liabilities | 0 | 2.56 | 1.15 | 0 | 0 | 0 | 7.67 | 1.02 |
| Current Liabilities - Total | 11.51 | 8.53 | 16.46 | 3.86 | 40.75 | 21.42 | 8.34 | 8.43 |
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| Long Term Debt | 21.02 | 18.3 | 33.98 | 0 | 33.78 | 20.87 | 22.77 | 23.64 |
| LT Debt Excl Capitalized Leases | 21.02 | 18.3 | 33.98 | 0 | 33.78 | 20.87 | 18.97 | 23.64 |
| Capitalized Lease Obligations | - | 0 | - | 0 | 0 | 0 | 3.81 | - |
| Deferred Taxes | 25.71 | 26.34 | 6.44 | 12.56 | 3.8 | 6.51 | 21.54 | 25.33 |
| Deferred Taxes - Credit | 25.71 | 26.34 | 9.6 | 12.56 | 3.8 | 6.51 | 21.54 | 25.33 |
| Deferred Taxes - Debit | - | - | 3.16 | - | - | - | - | - |
| Other Liabilities | 9.57 | 6.21 | 5.97 | 8.7 | 1.09 | 6.03 | 6.5 | 5.73 |
| Liabilities - Total | 67.8 | 59.39 | 62.85 | 25.12 | 79.42 | 54.83 | 59.15 | 63.13 |
| Shareholders' Equity |
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| Non-Equity Reserves | 0 | 0 | 0 | 0 | 0 | 0 | - | 0 |
| Minority Interest | 0 | 0 | 2.28 | 0 | 0.11 | 0 | 0 | 0 |
| Preferred Stock | 0 | 0 | 9.49 | 0.03 | 0 | 0 | 0 | 0 |
| Preferred Stock Non-Redeemable | 0 | 0 | 9.48 | 0.03 | 0 | 0 | - | 0 |
| Preferred Stock Redeemable | 0 | 0 | 0.01 | 0 | 0 | 0 | - | 0 |
| Common Equity | 32.2 | 40.61 | 25.39 | 74.84 | 20.47 | 45.17 | 40.85 | 36.87 |
| Common Stock | 0.02 | 1.9 | 0.02 | 2.39 | 0 | 0.04 | - | 1.61 |
| Capital Surplus | 22.05 | 10.82 | 2.58 | 32.34 | 6.73 | 16.63 | - | 4.77 |
| Other Appropriated Reserves | - | - | - | - | - | - | - | - |
| Retained Earnings | 29.17 | 29.72 | 22.79 | 40.11 | 13.78 | 30.36 | - | 30.9 |
| Less: Treasury Stock | 18.38 | 1.2 | - | 0 | 0 | 2.19 | - | 0.08 |
| Total Shareholders Equity | 32.2 | 40.61 | 34.87 | 74.88 | - | 45.17 | 40.85 | 36.87 |
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| Total Liabilities & Shareholders Equity | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
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| Common Shares Outstanding | 359,060,000.00 | 275,962,961.00 | 75,832,354.00 | 4,531,072.00 | 15,971,000.00 | 41,536,943.00 | 517,700,000.00 | 396,891,872.00 |
And the common-sized Income Statement of all the companies:
| | BNI | UNP | KSU | PWX | GBX | GWR | CNI | NSC |
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| 9/30/2006 | 9/30/2006 | 9/30/2006 | 9/30/2006 | 11/30/2006 | 9/30/2006 | 9/30/2006 | 9/30/2006 |
| Income Statement |
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| Net Sales or Revenues | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| Operating Expenses - Total | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 44.68 | 29.15 | 40.68 | 49.23 | 85.14 | 55.19 | 45.63 | 25.99 |
| Selling, General & Admin Expenses | 24.75 | 29.15 | 23.36 | 15.07 | 6.94 | 16.15 | - | 47.05 |
| Depreciation, Depletion & Amortization | 7.21 | 7.81 | 9.07 | 8.86 | 3.05 | 6.15 | 8.03 | 7.86 |
| Other Operating Expenses | 0 | 15.01 | 8.3 | 15.89 | 0 | 4.25 | 3.74 | -10.78 |
| Operating Income | 23.36 | 18.88 | 18.6 | 10.96 | 4.86 | 18.26 | 42.6 | 29.88 |
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| Non-Operating Interest Income | - | - | - | - | - | - | - | - |
| Interest Expense On Debt | 3.17 | 2.99 | 10.18 | 0 | 3.22 | 3.03 | 4.14 | 5.01 |
| Pretax Equity In Earnings | 0 | 0 | 0 | - | - | 0 | 0 | 0 |
| Other Income/Expense - Net | -0.25 | 0.55 | 1.92 | 6.54 | -0.2 | 11.28 | -0.5 | 1.71 |
| Interest Capitalized | - | - | - | - | - | - | - | - |
| Pretax Income | 19.93 | 16.44 | 10.34 | 17.49 | 0.95 | -1.85 | 37.96 | 26.58 |
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| Income Taxes | 7.54 | 5.9 | 3.54 | 5.59 | 0.24 | -7.58 | 12.87 | 9.19 |
| Minority Interest | 0 | 0 | 0.05 | 0 | 0 | 0 | 0 | 0 |
| Equity In Earnings | 0 | 0 | 0.77 | 0 | 0.04 | 0 | 0 | 0 |
| Income Before Extraordinary Items & Discont'd Ops | 12.39 | 10.54 | 7.58 | 11.91 | 0.76 | -9.44 | - | 17.38 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Income Before Extra Items/Preferred Div | 12.39 | 10.54 | 7.53 | 11.91 | 0.76 | -9.44 | 25.09 | 17.38 |
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| Extr Items & Gain(Loss) Sale of Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Income Before Preferred Dividends | 12.39 | 10.54 | 7.53 | 11.91 | 0.76 | -9.44 | 25.09 | 17.38 |
| Preferred Dividend Require | 0 | 0 | 1.18 | 0 | 0 | 0 | 0 | 0 |
| Net Income to Common Shareholders | 12.39 | 10.54 | 6.95 | 11.91 | 0.76 | -9.44 | 25.09 | 17.38 |
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| EPS Incl Extraordinary Items | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS - Continuing Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Per Share | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Common Shares Used to Calc Diluted EPS | 9.31 | 6.83 | 22.03 | 59.21 | 6.49 | 29.41 | 26.76 | 17.13 |
In the next couple weeks, we will look at the Department Stores Sector. Please come back for the following articles:
Monday, January 22 – Jon – Bon-Ton Stores, Inc. (BONT)
Tuesday, January 23 – Ben – Dillard’s, Inc. (DDS)
Wednesday, January 24 – Jon – Federated Dept. Stores, Inc (FD)
Thursday, January 25 – Ben – Gottschalks, Inc – (GOT)
Monday, January 29 – Jon – J.C. Penny Company – (JCP)
Tuesday, January 30 – Ben – Kohl’s Corporation (KSS)
Wednesday, January 31 – Jon – Saks Inc (SKS)
Thursday, February 1 – Ben – TJX Companies, Inc (TJX)
Monday, February 5 – Ben – Industry Review & Introduction of Next Industry