Industry Review: Railroads

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)

 

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:

 

BNI

UNP

KSU

PWX

GBX

GWR

CNI

NSC

 

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

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Total Liabilities & Shareholders Equity

100

100

100

100

100

100

100

100

 

 

 

 

 

 

 

 

 

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

 

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

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

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


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