Exhibit 99.1
Genesee & Wyoming Inc. Announces Completion of
Investment in Bolivian Railroad
Greenwich, CT, November 6, 2000 /PRNewswire/-- Genesee & Wyoming Inc. ("GWI")
(Nasdaq:GNWR) announced today that the Company has completed its previously
announced investment in Empresa Ferroviaria Oriental, S.A. (the "Oriental"),
a railroad serving eastern Bolivia and connecting to railroads in Argentina
and Brazil. For the nine months ended September 30, 2000, Oriental reported
revenue of $23.6 million, earnings before interest, taxes, depreciation and
amortization of $12.3 million and net income of $6.2 million under local
accounting standards.
The investment provides GWI with an indirect 22.55% equity interest in the
Oriental and was made through a 90% owned subsidiary, Genesee & Wyoming
Bolivia SRL ("GWB"), which is 10% owned by UniRail, LLC. GWI's portion of
the Oriental investment is composed of $6.66 million in cash, the assumption
of non-recourse debt of $10.8 million at an interest rate of 7.67%, and a
non-interest bearing contingent payment of $450,000 due in 3 years if certain
financial results are achieved. GWB will also be entitled to its portion of
Oriental's annual cash dividend for the fiscal year ending December 31, 2000,
which will be distributed early in 2001. GWB will account for its investment
in Oriental under the equity method of accounting.
GWI is a leading operator of short line and regional freight railroads in the
United States, Canada, Australia, Mexico and Bolivia, and provides freight
car switching and related services to industrial companies that have
extensive railroad facilities within their complexes. In 1999, GWI marked
the one-hundredth anniversary of its founding as a 14-mile railroad in
upstate New York. The Company today operates in five countries on three
continents over 4,495 miles of owned and leased track. It also operates over
an additional 2,700 miles under track access arrangements. In October 2000,
the Company was ranked 99th on Forbes magazine's list of the 200 best small
companies in America.
This press release contains forward-looking statements regarding future
events and the future performance of Genesee & Wyoming Inc. that involve
risks and uncertainties that could cause actual results to differ materially
including, but not limited to, economic conditions, customer demand,
increased competition in relevant markets, and others. We refer you to the
documents that Genesee & Wyoming Inc. files from time to time with the
Securities and Exchange Commission, such as the Company's Forms 10-Q and 10-K
which contain additional important factors that could cause its actual
results to differ from its current expectations and from the forward-looking
statements contained in this press release.
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SOURCE Genesee & Wyoming Inc. 11/6/2000
/CONTACT: John C. Hellmann, Chief Financial Officer of Genesee & Wyoming
Inc., 203-629-3722/
/Web site: http://www.gwrr.com/
(GNWR)
