PAGE 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 29, 1996
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OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For transition period from to
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Commission File Number 1-1543
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DAYTON AND MICHIGAN RAILROAD COMPANY
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(Exact name of registrant as specified in its charter)
Ohio 31-6005583
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
500 Water Street, Jacksonville, FL. 32202
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (904) 359-3100
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No Change
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(Former name, former address and former fiscal year, if changed since last
report.)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes (X) No ( )
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of April 26, 1996: 48,066.18 shares
REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H (1) (a) AND
(b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE
FORMAT.
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DAYTON AND MICHIGAN RAILROAD COMPANY
INDEX
PART I. FINANCIAL INFORMATION Page Number
Item 1. Financial Statements.
1. Statement of Earnings -
Quarters Ended March 29, 1996 and March 31, 1995 3
2. Statement of Cash Flows -
Quarters Ended March 29, 1996 and March 31, 1995 4
3. Statement of Financial Position -
At March 29, 1996 and December 31, 1995 5
Notes to Financial Statements 6
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 7
Signature 7
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DAYTON AND MICHIGAN RAILROAD COMPANY
STATEMENT OF EARNINGS
(Unaudited)
Quarters Ended
----------------------
March 29, March 31,
1996 1995
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Income
Rental Income $28,851 $21,935
Interest Income 17,635 15,835
Gain on Disposition of Properties 17,783 ---
------- -------
Earnings before Income Taxes 64,269 37,770
Income Tax Expense 16,662 9,792
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Net Earnings 47,607 27,978
Dividends on Preferred Stock 8,068 8,068
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Earnings Available to Common Shareholders $39,539 $19,910
======= =======
Average Common Shares Outstanding 9,420 9,420
======= =======
Earnings Per Common Share $ 4.20 $ 2.11
======= =======
Dividends Per Common Share $ .875 $ .875
======= =======
See accompanying Notes to Financial Statements.
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DAYTON AND MICHIGAN RAILROAD COMPANY
STATEMENT OF CASH FLOWS
(Unaudited)
Quarters Ended
----------------------
March 29, March 31,
1996 1995
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OPERATING ACTIVITIES
Net Earnings $ 47,607 $ 27,978
Gain on Disposition of Properties (17,783) ---
-------- --------
Cash Provided by Operating Activities 29,824 27,978
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INVESTING ACTIVITIES
Proceeds from Property Dispositions 17,783 ---
Advances to CSX Transportation, Inc. (31,296) (11,667)
-------- --------
Cash Used by Investing Activities (13,513) (11,667)
-------- --------
FINANCING ACTIVITIES
Cash Dividends Paid - Preferred (8,068) (8,068)
- Common (8,243) (8,243)
-------- --------
Cash Used by Financing Activities (16,311) (16,311)
-------- --------
Change in Cash and Cash Equivalents --- ---
CASH AND CASH EQUIVALENTS
Cash and Cash Equivalents at
Beginning of Period --- ---
-------- --------
Cash and Cash Equivalents at
End of Period $ --- $ ---
======== ========
See accompanying Notes to Financial Statements.
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PAGE 5
DAYTON AND MICHIGAN RAILROAD COMPANY
STATEMENT OF FINANCIAL POSITION
(Unaudited)
March 29, December 31,
1996 1995
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ASSETS
Land and Improvements $ 679,682 $ 681,006
Advances to CSXT 1,201,837 1,169,216
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Total Assets $ 1,881,519 $ 1,850,222
=========== ===========
SHAREHOLDERS' EQUITY
Preferred Stock, Non Voting Par
Value $50; Authorized 74,000 Shares;
Issued and Outstanding
24,225 Shares $ 1,211,250 $ 1,211,250
Common Stock, Par Value $50;
Authorized 60,000 Shares; Issued
and Outstanding 48,066.18 Shares 2,403,309 2,403,309
Retained Deficit (1,733,040) (1,764,337)
----------- -----------
Total Shareholders' Equity $ 1,881,519 $ 1,850,222
=========== ===========
See accompanying Notes to Financial Statements.
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PAGE 6
DAYTON AND MICHIGAN RAILROAD COMPANY
NOTES TO FINANCIAL STATEMENTS
NOTE 1. BASIS OF PRESENTATION
In the opinion of management, the accompanying financial statements
contain all adjustments necessary to present fairly the company's financial
position as of March 29, 1996 and December 31, 1995, and the results of its
operations and its cash flows for the quarters ended March 29, 1996 and March
31, 1995, such adjustments being of a normal recurring nature.
While management believes that the disclosures presented are adequate
to make the information not misleading, it is suggested that these financial
statements be read in conjunction with the financial statements and the notes
included in the company's latest Form 10-K.
NOTE 2. LEASE AGREEMENT
The company has no operations. Its property is leased in perpetuity
to CSX Transportation, Inc. (CSXT) and is maintained and operated by, for and
in the name of CSXT. As rent, CSXT pays the company's income taxes,
administrative expenses, and guaranteed dividends on the company's 3-1/2%
common and 8% preferred stock on shares held by other than CSXT. Interest
income is earned on amounts due from CSXT based on returns earned by CSX
Corporation, parent company of CSXT, on its short-term investment portfolio.
NOTE 3. EARNINGS PER SHARE
Earnings per common share are computed after giving effect to
preferred stock dividend requirements and are based on the weighted average
number of common shares outstanding, excluding shares held by CSXT.
NOTE 4. CASH AND CASH EQUIVALENTS
All of the company's cash has been advanced to CSXT for investment
purposes. Future cash requirements of the company will be funded by CSXT.
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DAYTON AND MICHIGAN RAILROAD COMPANY
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(b) Reports on Form 8-K
1. None.
SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
DAYTON AND MICHIGAN RAILROAD COMPANY
(Registrant)
/s/ JAMES L. ROSS
------------------------------------
James L. Ross
(Principal Accounting Officer)
Dated: May 13, 1996
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<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
EPS is computed after dividends on preferred stock of $8,068.
Earnings
available to common shareholders is $39,539.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-27-1996
<PERIOD-END> MAR-29-1996
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 679,682
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,881,519
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 2,403,309
0
1,211,250
<OTHER-SE> (1,733,040)
<TOTAL-LIABILITY-AND-EQUITY> 1,881,519
<SALES> 0
<TOTAL-REVENUES> 64,269
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 64,269
<INCOME-TAX> 16,662
<INCOME-CONTINUING> 47,607
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 47,607
<EPS-PRIMARY> 4.20
<EPS-DILUTED> 0
</TABLE>
