UNITED STATES SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
-------------------------------------------
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 1997
--------------
Commission File Number 0-19150
-------
WISCONSIN CENTRAL TRANSPORTATION
CORPORATION
--------------------------------
(Exact name of registrant as specified in its charter)
Delaware 36-3541743
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
6250 North River Road, Suite 9000
Rosemont, Illinois 60018
------------------ -----
(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code: (847) 318-4600
--------------
Indicate by check X 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.
X YES NO
--- ---
Indicate the number of shares outstanding of the
Issuer's common stock as of April 30, 1997: 50,835,879 shares
================================================================================
<PAGE>
WISCONSIN CENTRAL TRANSPORTATION CORPORATION
FORM 10-Q
Quarter Ended March 31, 1997
CONTENTS PAGE
----
Part I - Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets.............................. 1
Consolidated Statements of Income........................ 3
Consolidated Statements of Cash Flows.................... 4
Notes to Consolidated Financial Statements............... 5
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations............ 8
Part II - Other Information
Item 6. Exhibits and Reports on Form 8-K......................... 10
Signatures.............................................................. 11
Index to Exhibits....................................................... 12
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
WISCONSIN CENTRAL TRANSPORTATION CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
Assets
March 31, December 31,
1997 1996
--------- ---------
(Unaudited) (Audited)
<S> <C> <C>
Current assets:
Cash and cash equivalents ............................................................ $ 6,002 $ 5,637
Receivables, net of allowance for doubtful accounts of $2,323
and $2,256 at March 31, 1997 and December 31, 1996 ................................ 79,028 74,118
Receivables from insurance companies ................................................. 5,326 7,425
Income taxes receivable .............................................................. 2,804 2,804
Materials and supplies ............................................................... 21,504 17,530
Deferred income taxes ................................................................ 1,475 1,475
Other current assets ................................................................. 2,513 2,641
--------- ---------
Total current assets .............................................................. 118,652 111,630
Investment in affiliates ................................................................. 126,101 114,652
Properties:
Roadway and structures ............................................................... 524,994 438,101
Equipment ............................................................................ 102,666 90,683
--------- ---------
Total properties .................................................................. 627,660 528,784
Less accumulated depreciation ........................................................ (67,924) (63,791)
--------- ---------
Net properties .................................................................... 559,736 464,993
--------- ---------
Total assets ......................................................................... $ 804,489 $ 691,275
========= =========
The accompanying notes to consolidated financial statements
are an integral part of these financial statements.
</TABLE>
-1-
<PAGE>
<TABLE>
<CAPTION>
WISCONSIN CENTRAL TRANSPORTATION CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, except share amounts)
Liabilities and Stockholders' Equity
March 31, December 31,
1997 1996
--------- ---------
(Unaudited) (Audited)
<S> <C> <C>
Current liabilities:
Short-term debt ........................................................................ $ 979 $ 731
Accounts payable ....................................................................... 43,394 44,428
Accrued expenses ....................................................................... 85,499 74,442
Accrued disputed switching charges and associated interest ............................. 19,271 19,271
Interest payable ....................................................................... 1,312 731
--------- ---------
Total current liabilities ........................................................... 150,455 139,603
Long-term debt ............................................................................. 247,164 164,303
Other liabilities .......................................................................... 4,497 4,028
Deferred income taxes ...................................................................... 78,057 73,244
Deferred income ............................................................................ 10,671 10,951
--------- ---------
Total liabilities ................................................................... 490,844 392,129
Stockholders' equity:
Preferred stock, par value $1.00; authorized 1,000,000
shares; none issued or outstanding .................................................. -- --
Common stock, par value $0.01; authorized 150,000,000 shares;
issued and outstanding, 50,832,679 shares at March 31, 1997
and 50,778,867 shares at December 31, 1996 .......................................... 508 508
Paid in capital ........................................................................ 109,122 108,405
Cumulative translation adjustment ...................................................... 10,160 14,012
Retained earnings ...................................................................... 193,855 176,221
--------- ---------
Total stockholders' equity .......................................................... 313,645 299,146
--------- ---------
Total liabilities and stockholders' equity .......................................... $ 804,489 $ 691,275
========= =========
The accompanying notes to consolidated financial statements
are an integral part of these financial statements.
</TABLE>
-2-
<PAGE>
<TABLE>
<CAPTION>
WISCONSIN CENTRAL TRANSPORTATION CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
For the Quarter Ended
March 31,
------------------------------
1997 1996
--------- ---------
<S> <C> <C>
Operating revenues......................................................................... $ 80,261 $ 65,365
Operating expenses:
Roadway and structures................................................................ 12,269 9,933
Equipment ......................................................................... 19,141 18,452
Transportation........................................................................ 25,015 24,606
General and administrative............................................................ 8,751 7,622
--------- ---------
Operating expenses................................................................ 65,176 60,613
--------- ---------
Income from operations..................................................................... 15,085 4,752
Other income (expense):
Interest expense...................................................................... (3,179) (2,043)
Other, net ......................................................................... 278 592
--------- ---------
Total other income (expense), net................................................. (2,901) (1,451)
--------- ---------
Income before income taxes and equity in net income of affiliates.......................... 12,184 3,301
Provision for income taxes................................................................. 4,823 1,307
--------- ---------
Income before equity in net income of affiliates........................................... 7,361 1,994
Equity in net income of affiliates......................................................... 10,273 6,072
--------- ---------
Net income................................................................................. $ 17,634 $ 8,066
========= =========
Earnings per common share outstanding...................................................... $ .35 $ .16
========= =========
Average common shares outstanding.......................................................... 50,803 50,521
========= =========
The accompanying notes to consolidated financial statements
are an integral part of these financial statements.
</TABLE>
-3-
<PAGE>
<TABLE>
<CAPTION>
WISCONSIN CENTRAL TRANSPORTATION CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
For the Quarter Ended
March 31,
------------------------------
1997 1996
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net income .......................................................................... $ 17,634 $ 8,066
Reconciliation of net income to net cash
provided by operating activities:
Depreciation and amortization...................................................... 4,035 3,099
Deferred income taxes.............................................................. 4,813 361
Equity in net income of affiliates................................................. (10,273) (6,072)
Gains on property sales............................................................ (179) (283)
Net amortization of deferred gain on sale-leaseback of equipment................... (280) (285)
Changes in working capital:
Accounts receivable........................................................... (4,910) (8,045)
Receivables from insurance companies.......................................... 2,099 (25,000)
Note receivable............................................................... -- 13,213
Materials and supplies........................................................ (3,974) (1,121)
Other current assets, excluding deferred income taxes......................... 2 (186)
Accrued derailment claims..................................................... (812) 22,955
Current liabilities........................................................... 11,416 (2,675)
Other, net......................................................................... 469 (17)
--------- ---------
Net cash provided by operating activities.............................................. 20,040 4,010
--------- ---------
Cash flows from investing activities:
Property acquisition................................................................... (88,282) --
Property additions..................................................................... (11,028) (9,467)
Property sales and other transactions.................................................. 837 449
Investments in affiliate............................................................... (8,402) (30,676)
Dividend from affiliate................................................................ 3,374 --
--------- ---------
Net cash used for investing activities................................................. (103,501) (39,694)
--------- ---------
Cash flows from financing activities:
Long-term debt issued.................................................................. 83,109 33,282
Issuance of common stock under stock option plans...................................... 717 1,326
--------- ---------
Net cash provided by financing activities.............................................. 83,826 34,608
--------- ---------
Net increase (decrease) in cash and cash equivalents................................... 365 (1,076)
Cash and cash equivalents, beginning of period......................................... 5,637 5,303
--------- ---------
Cash and cash equivalents, end of period............................................... $ 6,002 $ 4,227
========= =========
Supplemental cash flow information: Cash paid during the period for:
Interest .......................................................................... $ 2,786 $ 1,768
Income taxes....................................................................... 10 46
The accompanying notes to consolidated financial statements
are an integral part of these financial statements.
</TABLE>
-4-
<PAGE>
WISCONSIN CENTRAL TRANSPORTATION CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
March 31, 1997
Basis of Presentation
The consolidated financial statements presented herein include the results
of operations of Wisconsin Central Transportation Corporation ("WCTC") and its
wholly owned subsidiaries, Wisconsin Central Ltd. ("WCL"), Fox Valley & Western
Ltd. ("FV&W"), WCL Railcars, Inc., Sault Ste. Marie Bridge Company ("SSM"),
Wisconsin Central International, Inc. ("WCI"), WC Canada Holdings, Inc. and
Algoma Central Railway Inc. ("ACRI"). WCTC, through WCI, also holds a 23% equity
interest in Tranz Rail Holdings Limited ("Tranz Rail"), which operates a
nationwide railway in New Zealand, and a 34% equity interest in English Welsh
and Scottish Railway Holdings Limited ("EW&S"), whose subsidiaries operate
railways in Great Britain. WCTC and its subsidiaries are hereinafter referred to
as the Company. Certain information and footnote disclosures normally included
in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. Accordingly, these
unaudited consolidated financial statements should be read in conjunction with
the Company's audited financial statements and the notes thereto for the year
ended December 31, 1996. In the opinion of management, the information provided
in these statements reflects all adjustments necessary to present fairly such
information. The results of operations for any interim period are not
necessarily indicative of the results of operations for the entire year.
Reclassifications
Certain amounts in the 1996 financial statements have been reclassified to
conform to the 1997 presentation. Included in these amounts were $1,465,000 and
$337,000, which were reclassified to operating revenues from non-operating
income for the quarters ended March 31, 1997 and 1996, respectively.
Stock Split
On May 16, 1996, the Company's Board of Directors announced a three-for-one
split of the Company's common stock in the form of a stock dividend to
stockholders of record as of May 17, 1996 which was effective May 31, 1996. The
stated par value of each share was not changed from $.01. All share and per
share amounts have been restated to reflect the common stock split.
Authorized Shares
On May 16, 1996, the Company's shareholders approved an amendment of the
Company's Certificate of Incorporation to increase to 150,000,000 the number of
authorized shares of common stock.
Duck Creek North Acquisition
On January 27, 1997, SSM completed the purchase of 207 route miles of
railroad track and trackage rights in Wisconsin and the Upper Peninsula of
Michigan from the Union Pacific Railroad Company. The rail lines, commonly known
as the "Duck Creek North" lines, extend from North Green Bay, Wisconsin to
-5-
<PAGE>
Ishpeming, Michigan; from Powers to Antoine, Michigan; from Quinnesec, Michigan
to Niagara, Wisconsin; and from Cascade to Palmer, Michigan. Freight shipments
over the lines consist of materials for the paper industry and high volumes of
iron ore used in steel-making which are shipped from the Marquette ore range to
Escanaba, Michigan for transloading to vessels. The rail lines, together with
contiguous property and associated facilities, were purchased for approximately
$85.0 million of cash plus provisions for labor protection and other reserves of
$2.6 million and deferred acquisition costs of $0.7 million. The purchase was
funded through borrowings under existing revolving credit facilities. This
acquisition is referred to herein as the "Duck Creek North Acquisition".
Safety Compliance Agreement with FRA
On February 7, 1997, WCL and FV&W entered into a voluntary cooperative
Safety Compliance Agreement with the Federal Railroad Administration ("FRA")
pursuant to the Safety Assurance and Compliance Program ("SACP"). The SACP is a
program, initiated by the FRA in March of 1995, to permit railroads and the FRA
to develop and monitor agreed upon programs to improve safety conditions on a
systematic basis throughout a railroad. The SACP will focus on improving track
conditions, inspection procedures and training for railroad employees. The
Company expects that, although the SACP will result in increased short-term
capital expenditures and operating expenses, it will realize long-term benefits
from these costs.
English Welsh & Scottish Railway Holdings Limited
WCI had invested approximately $45.0 million in EW&S for a 31% ownership
interest as of December 31, 1996. The Company has been granted performance-based
options to acquire additional shares in EW&S to compensate it for its leadership
of the consortium, and has entered into a management service agreement with
EW&S, under which the Company earned compensation of $0.8 million in the first
quarter of 1997. On February 21, 1997, the Company invested an additional $8.4
million to exercise a portion of these options, increasing its equity ownership
position from approximately 31% to approximately 34%. In addition, EW&S has
issued options to certain of its officers and directors, and warrants to the
investment banking firm that facilitated the acquisition of EW&S. Assuming that
all options and warrants are exercised, the Company's equity interest in EW&S
will be approximately 34%.
BOCT Arbitration
On June 10, 1996, an arbitration panel ruled against the Company in a
dispute with the Baltimore and Ohio Chicago Terminal Railroad Company ("BOCT")
regarding intermediate switching and car hire reclaim charges allegedly incurred
from July 1988 through February 1993. The arbitration panel awarded BOCT $16.8
million plus $2.5 million of interest. Based upon the arbitration panel's
ruling, the Company recorded pretax provisions of $15.8 million in the second
quarter of 1996, representing amounts awarded in excess of previously recorded
accruals. The litigation between BOCT and the Company continues. The U.S.
District Court has affirmed the arbitration award and also authorized WCL to
pursue the defenses that were not subject to arbitration, including claims to be
brought before the Surface Transportation Board.
Waukesha Environmental Matter
On April 2, 1996, WCL received a request for documents from the U.S.
Department of Justice ("DOJ") relating to the demolition of a foundry and
roundhouse on the Company's property in Waukesha, Wisconsin, performed by
contractors for WCL in 1993. A request for additional documents was received on
November 21, 1996. WCL has complied with the requests. Previously, in March
1994, WCL had received a notice of violation of the Clean Air Act (the "Act")
and the National Emission Standard for Asbestos (the "Asbestos NESHAP")
promulgated thereunder from the U.S. Environmental Protection Agency ("USEPA")
in
-6-
<PAGE>
connection with the demolition. The USEPA held a conference with WCL on April
11, 1994 to discuss the notice prior to a determination of any enforcement
action to be taken under section 113 of the Act. If the DOJ or the USEPA
determines that an action should be brought against the Company, the Company
will vigorously defend itself. If it were to be determined that WCL violated the
Asbestos NESHAP, WCL could be subject to criminal prosecution with fines of up
to $500 thousand per violation or civil enforcement with fines of up to $25
thousand per day for each violation.
Weyauwega Accident
On March 4, 1996, the Company had a derailment in Weyauwega, Wisconsin
involving thirty-five cars, fourteen of which contained propane or liquified
petroleum gas and two of which contained sodium hydroxide solution. The total
cost for the derailment is currently estimated at $27.0 million. The Company
believes that its insurance policies will cover substantially all these costs,
in excess of the $2.5 million of deductibles, due to the derailment. Through
March 31, 1997, the Company had funded $26.1 million in costs incurred as a
result of this derailment and received $19.2 million in reimbursements from
insurance companies. The Company's Consolidated Balance Sheet includes an
insurance receivable of $5.3 million as of March 31, 1997. During the first
quarter of 1996, the Company recorded a pretax provision of $2.5 million for the
combined deductibles under its property damage and liability insurance policies.
The Company has been successful in resolving the vast majority of claims
directly with the claimants. Through March 31, 1997, approximately 98% of
affected residents and 97% of affected businesses had resolved their claims
against the Company. A complaint was filed against the Company on March 26, 1996
by nine individuals seeking to represent the class of persons who suffered
damages as a result of this derailment. The complaint seeks punitive and treble
damages. Any punitive damages and treble damages may not be covered by the
Company's insurance. The Company does not believe there is any basis for an
award of such damages. On July 9, 1996, the court declined to certify a class
action lawsuit against the Company. The court did, however, indicate it would
appoint a guardian ad litem to review all settlements made on behalf of affected
minors and would notify all claimants who had not settled their claims of the
existence of the action so that these claimants would have the option of joining
the lawsuit should they desire. Since that date, the court has decided not to
appoint a guardian ad litem. All potential claimants were notified, and thirteen
families and two businesses joined the lawsuit which is in discovery phase. In
addition, one business has filed a separate suit for damages in the District
Court of Waupaca County. It is the opinion of management that the resolution of
these matters will not have a material adverse effect on the Company's financial
position.
National Mediation Board Notification
WCL has been notified by the National Mediation Board that it has received
applications filed on behalf of the Brotherhood of Locomotive Engineers and the
United Transportation Union to conduct a representation election for locomotive
engineers and conductors. The election would cover all United States operations.
-7-
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The following discussion should be read in conjunction with the unaudited
consolidated financial statements and related notes included herein.
Results of Operations: First Quarter 1997 Compared to First Quarter 1996
The Company's net income for the quarter ended March 31, 1997 was $17.6
million compared to $8.1 million for the same period in 1996. The first quarter
of 1996 was affected by the Weyauwega derailment discussed in the Notes to
Consolidated Financial Statements.
Operating revenues. Operating revenues during the quarter ended March 31,
1997 were $80.3 million compared with $65.4 million for the same period in 1996,
an increase of 23%. Gross revenues for the quarter ended March 31, 1997
increased in 14 of 15 commodity groups, compared with the same period in 1996.
Traffic volume, as measured by carloads handled (including as a carload each
loaded trailer or container), for the quarter ended March 31, 1997 approximated
137,500 carloads compared with approximately 114,800 carloads in 1996.
The metallic ore business added by the Duck Creek North lines, which were
acquired January 27, 1997, contributed to the Company's overall increases in
volume and gross revenues. Metallic ore increased by over 9,600 carloads, or
34%, from the same period in 1996. Other large increases in revenues occurred in
clay products, woodpulp, sand, stone and minerals, steel, and intermodal.
Volume and gross revenues for clay products increased by 22% and 35%,
respectively, due primarily to increased demand for raw materials used in the
production of roofing materials, as well as increased demand for coating clays
used in the paper industry. Woodpulp volume and gross revenues increased by 15%
and 30%, respectively, due primarily to increased demand by the paper industry.
Volume and gross revenues for sand, stone and minerals increased by 39% and 26%,
respectively, due primarily to increased demand for both construction aggregates
and cement. In addition, the Duck Creek North lines have contributed to an
increase in shipments of limestone. Volume and gross revenues for steel
increased by 15% and 21%, respectively, due to increased demand from a major
customer of ACRI. Intermodal volume and gross revenues increased by 54% and 70%,
respectively, due to the new joint rate intermodal service which the Company
together with Canadian National Railway began on April 1, 1996.
Also contributing to operating revenues during the quarter ended March 31,
1997 was an increase in management fees from affiliates of $0.6 million. In
addition, operating revenues during the first quarter of 1997 included rental
income of $0.5 million from Metra, the commuter rail system for Northeastern
Illinois, which commenced operations of a commuter service on the Company's
tracks between Chicago and Antioch, Illinois in August 1996.
Operating expenses. Operating expenses for the first quarter of 1997 were
$65.2 million, $4.6 million or 8% higher than last year. Increases in labor,
equipment rents, fuel and depreciation were primarily caused by increased
traffic levels, the cooperative SACP agreement entered into with the FRA as
discussed in the Notes to Consolidated Financial Statements, and the additional
operations of the Duck Creek North lines. The first quarter of 1996 included the
effects of the Weyauwega derailment as discussed in the Notes to Consolidated
Financial Statements. The Company's operating ratio (operating expenses as a
percentage of operating revenues) was 81.2% in the first quarter of 1997,
compared to 92.7% in the first quarter of 1996.
-8-
<PAGE>
Labor expense increased by $1.8 million or 7% in the first quarter of 1997
as compared to the same period in 1996 primarily due to a 2% increase in the
work force and an average 3.5% increase in wages and salaries granted to
employees at the beginning of the year, as well as a decrease in the amount of
labor related to infrastructure projects billable to others in the first quarter
of 1997 compared to the same period in 1996. Net equipment rent expense
increased by $1.0 million or 13% primarily due to increased car hire costs as a
result of overall increases in traffic congestion in the Company's operating
territory. Fuel expense increased by $0.7 million or 13% in the first quarter of
1997 as compared with the same period of 1996 primarily as a result of a 14%
increase in fuel prices. Depreciation increased by $0.9 million or 31% primarily
due to the addition of the Duck Creek North lines.
Interest expense and income taxes. Interest expense increased $1.1 million
in the first quarter of 1997 to $3.2 million, primarily due to the increased
borrowings to finance the acquisition of the Duck Creek North lines discussed in
the Notes to Consolidated Financial Statements.
The income tax provision for the first quarter of 1997 was $4.8 million, an
increase of $3.5 million from the first quarter of 1996, due to an increase in
pre-tax income.
Equity in net income of affiliates. The Company's 1997 first quarter
results included equity in net income of its affiliates of $10.3 million as
compared to $6.1 million for the same period of 1996. The Company's equity in
the net income of Tranz Rail for the first quarter of 1997 was $3.2 million,
versus $2.9 million in the same quarter a year ago. The Company received its
first dividend in March 1997 from Tranz Rail in the amount of $3.4 million. The
Company's equity in the net income of EW&S for the first quarter of 1997 was
$7.1 million versus $3.2 million in the same quarter a year ago. EW&S's
contribution to the first quarter of 1996 included less than a full quarter of
results for the three trainload freight companies which were acquired from
British Rail on February 24, 1996. On February 21, 1997, the Company invested an
additional $8.4 million in EW&S, increasing its equity ownership position from
approximately 31% to approximately 34%.
Financial Condition: March 31, 1997 Compared to December 31, 1996
The Company generated cash in the amount of $24.3 million during the first
three months of 1997 from operations, the cash dividend received from Tranz Rail
and the sale of assets and $83.8 million from financing activities. These
resources, as well as cash on hand, were used to finance the Company's
acquisition of the Duck Creek North lines of $88.3 million, the additional
investment in EW&S of $8.4 million and other capital-related expenditures of
$11.0 million. The Company expects that the SACP agreement entered into with the
FRA as discussed in the Notes to Consolidated Financial Statements will result
in an increase in its 1997 roadway and structures capital expenditures.
The Company had $248.1 million of total debt outstanding at March 31, 1997,
which constituted 44.2% of its total capitalization, compared to 35.6% at
December 31, 1996. At March 31, 1997, the Company's aggregate unused borrowing
availability under its loan facilities totaled $97.5 million.
-9-
<PAGE>
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
The exhibits set forth on the accompanying Index to Exhibits are filed as
part of this report.
The Company filed a report on Form 8-K dated January 27, 1997, reporting
the acquisition of the Duck Creek North lines from the Union Pacific Railroad
Company as indicated in the enclosed Notes to Consolidated Financial Statements
under "Duck Creek North Acquisition.".
-10-
<PAGE>
WISCONSIN CENTRAL TRANSPORTATION CORPORATION
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
WISCONSIN CENTRAL TRANSPORTATION
CORPORATION
Date: May 14, 1997 By: /s/ Walter C. Kelly
-----------------------
Walter C. Kelly
Vice President, Finance
Date: May 14, 1997 By: /s/ Walter C. Kelly
-----------------------
Walter C. Kelly
Chief Accounting Officer
-11-
<PAGE>
INDEX TO EXHIBITS
Sequentially
Numbered
Exhibit No. Description Page
- ----------- ----------- ----
11 Statement re Computation of
Per Share Earnings 15
27 Financial Data Schedule 16
-12-
EXHIBIT NO. 11
Statement re Computation of Per Share Earnings
WISCONSIN CENTRAL TRANSPORTATION CORPORATION
(in thousands, except per share amounts)
(Unaudited)
For the Quarter Ended
March 31,
----------------------
1997 1996
-------- --------
Net income .......................................... $ 17,634 $ 8,066
======== =======
Weighted average common shares outstanding:
Primary ........................................ 50,803 50,521
======== =======
Fully diluted .................................. 51,947 51,704
======== =======
Earnings per common share outstanding:
Primary ........................................ $ .35 $ .16
======== =======
Fully diluted .................................. $ .34 $ .16
======== =======
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Condensed Consolidated Balance Sheet at March 31, 1997 (unaudited) and the
Condensed Consolidated Statement of Income for the Three Months Ended March 31,
1997 (unaudited) and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 6,002
<SECURITIES> 0
<RECEIVABLES> 81,351
<ALLOWANCES> 2,323
<INVENTORY> 21,504
<CURRENT-ASSETS> 118,652
<PP&E> 627,660
<DEPRECIATION> 67,924
<TOTAL-ASSETS> 804,489
<CURRENT-LIABILITIES> 150,455
<BONDS> 247,164
0
0
<COMMON> 508
<OTHER-SE> 313,137
<TOTAL-LIABILITY-AND-EQUITY> 804,489
<SALES> 0
<TOTAL-REVENUES> 80,261
<CGS> 0
<TOTAL-COSTS> 65,176
<OTHER-EXPENSES> (278)
<LOSS-PROVISION> 117
<INTEREST-EXPENSE> 3,179
<INCOME-PRETAX> 12,184
<INCOME-TAX> 4,823
<INCOME-CONTINUING> 7,361
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 17,634
<EPS-PRIMARY> 0.35
<EPS-DILUTED> 0.34
</TABLE>
