FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: June 18, 1998
PIONEER RAILCORP
(Exact name of registrant as specified in its charter)
IOWA 33-6658-C 37-116131
(State of Incorporation) (Commission File No.) (IRS Employer ID No.)
1318 S. JOHANSON ROAD, PEORIA, ILLINOIS 61607
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code: (309) 697-1400
Item 5. Other Events.
The City of Rochelle, Illinois, which owns the mainline trackage operated by
Rochelle Railroad Co. (RRCO), has obtained common carrier authority to
operate the line. The City began joint operations on June 9, 1998, using
Total Logistics Control, one of the on-line shippers, as its contractor.
It is anticipated that within a short period of time rail shipments to and
from the Total Logistics Control facility will be handled by the city and
not RRCO. TLC's traffic represents approximately 75% of the business on the
line. The RRCO anticipates it will continue to handle traffic for the other
two customers on the line. The loss of the Total Logistics Control business
will have a significant negative impact on RRCO revenue and operating income
and subsequently the operating revenue, operating income and net income of
the consolidated operating results of Pioneer Railcorp, the parent company
of the RRCO.
In 1997, the Rochelle Railroad Co. generated $408,000 in revenue and $250,000
of operating income. In the first quarter 1998, the Rochelle Railroad Co.
generated $155,000 of operating revenue and $95,000 of operating income.
SIGNATURES
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.
PIONEER RAILCORP
(Registrant)
06/18/98 /S/Guy L. Brenkman
DATE GUY L. BRENKMAN
PRESIDENT & CEO
06/18/98 /s/J. Michael Carr
DATE J. MICHAEL CARR
TREASURER & CHIEF
FINANCIAL OFFICER
