G&W Posted Gains in 4th Quarter 2017

Genesee & Wyoming had fourth-quarter 2017 operating revenue of $571.6 million, an increase of 10.7 percent over the fourth quarter of 2016.

Operating income rose 101.9 percent to $108.2 million, while adjusted operating income increased by 2.2 percent to $105.7 million.

Net income for the quarter was $426.6 million compared with $8.9 million in the fourth quarter of 2016.

Diluted earnings per share were $6.81 with 62.7 million weighted average shares outstanding, compared with reported diluted earnings per share of 15 cents with 58.8 million weighted average shares outstanding in the fourth quarter of 2016. The adjusted diluted EPS fell 8.3 percent to 77 cents.

The income and diluted EPS for the period include a $371.9 million, or $5.94 per share, income tax benefit associated with the U.S. Tax Cuts & Jobs Act that became law in December.

In a statement, G&W President and Chief Executive Officer Jack Hellmann said revenue in each of the company’s geographic segments — North America, Australia and U.K./Europe — finished the year in line with expectations.

“In 2017, we generated adjusted free cash flow attributable to G&W of $250 million, a 3.6 percent increase over 2016, as we effectively managed both expenses and capital expenditures to more than offset flat revenue,” he said.

In a news release, G&W said it sees an improving business outlook in each operating region and thus expects double-digit growth in adjusted EPS and adjusted free cash flow.

“At the same time, we continue to evaluate acquisition and investment opportunities across G&W’s global footprint and have approximately $400 million of borrowing capacity under our revolving credit facility,” Hellmann added.

For all of 2017, G&W posted net income of $549.1 million, compared with $141.1 million in 2016. Adjusted net income in 2017 was $182.0 million, compared with $182.4 million in 2016.

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