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Previous: RAILAMERICA INC /DE, 10-Q/A, 1998-04-27 |
Next: FORENSIC TECHNOLOGIES INTERNATIONAL CORP, DEF 14A, 1998-04-27 |
<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q/A
(Amendment No. 2)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
-------------
Commission File No. 0-20618
-------
RAILAMERICA, INC.
----------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
DELAWARE 65-0328006
------------------------------- -------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
301 YAMATO ROAD, SUITE 1190, BOCA RATON, FLORIDA 33431
------------------------------------------------------
(Address of principal executive offices)
(Zip Code)
(561) 994-6015
---------------------------
(Issuer's telephone number)
Check whether the registrant (1) 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 XX No
--- ----
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date:
Common Stock, par value $.001 - 9,341,830 shares as of April 23, 1998
<PAGE> 2
RAILAMERICA, INC. AND SUBSIDIARIES
INDEX TO FORM 10-Q
QUARTER ENDED JUNE 30, 1997
PAGE NO.
PART I FINANCIAL INFORMATION
Item 1 Financial Statements
Consolidated Balance Sheets - June 30, 1997
and December 31, 1996 1
Consolidated Statements of Income -
For the six and three months ended
June 30, 1997 and 1996 2
Consolidated Statements of Cash Flows - For the
six months ended June 30, 1997 and 1996 3
Notes to Consolidated Financial Statements 4
Item 2 Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
PART II OTHER INFORMATION
Item 5 Other Information 20
Item 6 Exhibits and Reports on Form 8-K 21
Signatures
<PAGE> 3
RAILAMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, 1997 and December 31, 1996
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
----------- -----------
ASSETS (Unaudited)
<S> <C> <C>
Current assets:
Cash $ 1,614,565 $ 3,879,972
Accounts receivable 7,499,232 4,575,958
Inventories 3,465,239 3,104,555
Other current assets 809,910 462,867
----------- -----------
Total current assets 13,388,946 12,023,352
Property, plant and equipment net 72,932,251 54,148,966
Other, net 2,605,303 2,426,615
Excess of cost over net assets of companies acquired, net 2,875,835 2,965,853
----------- -----------
Total assets $91,802,335 $71,564,786
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 2,021,716 $ 1,752,926
Current maturities of subordinated debt 212,392 212,392
Accounts payable 7,237,460 3,162,953
Accrued expenses and income taxes payable 2,821,563 1,811,739
----------- -----------
Total current liabilites 12,293,131 6,940,010
----------- -----------
Long-term debt, less current maturities 39,819,843 38,401,119
----------- -----------
Subrodinated debt, less current maturities 3,371,686 3,477,882
----------- -----------
Deferred income taxes 6,906,763 6,753,668
----------- -----------
Minority interest in Consolidated Subsidiary 5,500,500 --
----------- -----------
Commitments and contingencies
Redeemable convertible preferred stock, $.001 par value, 1,000,000
shares authorized -- --
Stockholders' equity:
Common stock, $.01 par value, 30,000,000 shares authorized;
8,694,620 issued and 8,457,620 outstanding at June 30, 1997;
6,125,410 issued and 5,888,410 outstanding at December 31, 1996 8,694 6,125
Additional paid-in capital 21,700,023 11,773,036
Common stock subscribed -- 2,340,000
Retained earnings 3,332,319 2,944,774
Cumulative translation adjustment 8,645 67,441
Less treasury stock (237,000 sharess at cost) (1,139,269) (1,139,269)
----------- -----------
Total stockholders' equity 23,910,412 15,992,107
----------- -----------
Total liabilities and stockholders' equity $91,802,335 $71,564,786
=========== ===========
</TABLE>
The accompanying notes are an integral part of the
consolidated financial statements.
1
<PAGE> 4
RAILAMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the six and three months ended June 30, 1997 and 1996
(Unaudited)
<TABLE>
<CAPTION>
Three months ended June 30, Six months ended June 30,
---------------------------- -----------------------------
1997 1996 1997 1996
----------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
Operating revenues:
Transportation - railroads - domestic $ 3,717,649 $2,095,948 $ 7,349,320 $ 4,762,528
Transportation - railroad - international 1,649,000 - 2,326,000 -
Manufacturing 5,957,057 4,688,006 10,031,076 8,141,220
Other 272,597 744,892 624,219 841,876
----------- ---------- ----------- -----------
11,596,303 7,528,846 20,330,615 13,745,624
----------- ---------- ----------- -----------
Operating expenses:
Transportation - railroads - domestic 1,893,778 1,017,107 3,685,764 2,072,778
Transportation - railroad - international 1,060,000 - 1,507,821 -
Cost of goods sold - manufacturing 4,180,183 3,637,295 7,301,232 6,268,230
Selling, general and administrative 2,338,471 1,331,294 4,149,187 2,565,046
Depreciation and amortization 673,168 387,402 1,243,805 749,025
----------- ---------- ----------- -----------
10,145,600 6,373,098 17,887,809 11,655,079
----------- ---------- ----------- -----------
Operating income 1,450,703 1,155,748 2,442,806 2,090,545
Interest expense (823,739) (455,526) (1,533,173) (860,344)
Other expenses 1,420 (19,193) (92,328) (39,859)
Minority interest in consolidated subsidiary (66,060) - (85,500) -
----------- ---------- ----------- -----------
Income from continuing operations before
income taxes 562,324 681,029 731,805 1,190,342
Provision for income taxes 198,528 252,000 255,341 440,000
----------- ---------- ----------- -----------
Income from continuing operations 363,796 429,029 476,464 750,342
Discontinued operations
Loss from operations of discontinued Motor
Carrier segment (less applicable income tax
benefit of $31,000 and $61,000, respectively, and
benefit of $68,000 and $125,000, respectively) (49,406) (102,719) (111,086) (212,225)
----------- ---------- ----------- -----------
Net Income $ 314,390 $ 326,310 $ 365,378 $ 538,117
=========== ========== =========== ===========
=========================================================================================================================
Primary earnings per common share
Continuing operations $ 0.04 $ 0.09 $ 0.06 $ 0.15
Discontinued operations (0.00) (0.02) (0.01) (0.03)
----------- ---------- ----------- -----------
Net income $ 0.04 $ 0.07 $ 0.05 $ 0.12
=========== ========== =========== ===========
Fully diluted earnings per common share
Continuing operations $ 0.04 $ 0.09 $ 0.06 $ 0.14
Discontinued operations (0.00) (0.02) (0.01) (0.03)
----------- ---------- ----------- -----------
Net income $ 0.04 $ 0.07 $ 0.05 $ 0.11
=========== ========== =========== ===========
Weighted average common shares and common
share equivalents outstanding:
Primary 8,584,367 5,665,998 8,391,264 5,664,208
=========== ========== =========== ===========
Fully Diluted 9,393,768 6,475,399 9,200,665 6,473,609
=========== ========== =========== ===========
</TABLE>
The accompanying notes are an integral part of the
consolidated financial statements.
2
<PAGE> 5
RAILAMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the six months ended June 30, 1997 and 1996
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
----------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 365,378 $ 538,117
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 1,570,169 1,030,200
Minority interest 85,500 --
Gain on sale of properties (21,938) (605,545)
Employee stock grants -- 48,554
Deferred income taxes 175,261 291,780
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable (2,164,274) (1,460,631)
Inventories 254,316 95,560
Other current assets (172,043) (101,258)
Accounts payable 516,507 237,252
Income taxes payable (105,538) (400,000)
Accrued liabilities 257,362 (175,227)
Deposits and other 2,709 (64,429)
----------- -----------
Net cash provided by operating activities 763,409 (565,627)
----------- -----------
Cash flows from investing activities:
Purchase of property, plant and equipment (2,929,696) (3,267,213)
Acquisition of 55% of Ferronor (7,389,903) --
Proceeds from sales of properties 163,600 937,702
Deferred acquisition costs and other (147,248) (295,511)
----------- -----------
Net cash used in investing activities (10,303,247) (2,625,022)
----------- -----------
Cash flows from financing activities:
Proceeds from issuance of long-term debt and capital leases 17,299,269 6,793,680
Principal payments on debt and capital leases (17,248,495) (5,643,574)
Sale of common stock 7,589,345 --
Purchase of treasury stock -- (71,003)
Deferred financing costs (90,833) --
Deferred loan costs (274,855) (5,987)
----------- -----------
Net cash provided by financing activities 7,274,431 1,073,116
----------- -----------
Net decrease in cash (2,265,407) (2,117,533)
Cash, beginning of period 3,879,972 3,488,866
----------- -----------
Cash, end of period $ 1,614,565 $ 1,371,333
=========== ===========
</TABLE>
The accompanying notes are an integral part of the
consolidated financial statements.
3
<PAGE> 6
RAILAMERICA, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION:
The consolidated financial statements included herein have been
prepared by the Company, without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission. Certain
information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such rules and
regulations.
In the opinion of Management, the consolidated financial statements
contain all adjustments which are those of a recurring nature, and
disclosures necessary to present fairly the financial position of the
Company as of June 30, 1997 and December 31, 1996, and the results of
operations and cash flows for the six and three months ended June 30,
1997 and 1996.
The accounting principles which materially affect the financial
position, results of operations and cash flows of the Company are set
forth in Notes to the Consolidated Financial Statements which are
included in the Company's financial statements contained in the
Company's 1996 annual report on Form 10-KSB. Capitalized terms used but
not otherwise defined herein have the meanings set forth in the
Company's annual report on Form 10-KSB.
In February 1997, Statements of Financial Accounting Standards ("SFAS")
No. 128 "Earnings Per Share" was issued. SFAS No. 128 established new
standards for computing and presenting earnings per share ("EPS"). This
statement replaces the presentation of primary EPS and will require
dual presentation of basic and diluted EPS. SFAS No. 128 is effective
for financial statements issued for periods ended after December 15,
1997 and requires restatement of all prior-period EPS data presented.
The Company has not yet determined the impact, if any, the adoption of
SFAS No. 128 will have on the Company's financial statements.
2. EARNINGS PER SHARE:
For the six and three months ended June 30, 1997, primary and fully
diluted earnings per share are based on the weighted average number of
common and common equivalent shares outstanding under the modified
treasury stock method. Fully diluted earnings per share was computed,
in addition to the above computation, assuming the conversion of the
convertible subordinated notes payable and using the higher of the
average market price or the end of the quarter market price.
4
<PAGE> 1
EXHIBIT 11 - COMPUTATION OF PER SHARE EARNINGS FROM CONTINUING OPERATIONS
FULLY DILUTED EARNINGS PER SHARE FOR THE SIX MONTH PERIOD ENDED JUNE 30, 1997
<TABLE>
<CAPTION>
<S> <C>
Net income from continuing operations $ 476,464
Interest reduction on conversion of convertible debt 75,488
----------
Adjusted net income $ 551,952
==========
Weighted average common shares and common share equivalents 8,391,264
Conversion of convertible debt 809,401
----------
Adjusted shares outstanding 9,200,665
==========
Fully diluted earnings per share $ 0.06
======
</TABLE>
FULLY DILUTED EARNINGS PER SHARE FOR THE THREE MONTH PERIOD ENDED JUNE 30, 1997
<TABLE>
<CAPTION>
<S> <C>
Net income from continuing operations $ 363,796
Interest reduction on conversion of convertible debt 37,363
----------
Adjusted net income $ 401,159
==========
Weighted average common shares and common share equivalents 8,584,367
Conversion of convertible debt 809,401
----------
Adjusted shares outstanding 9,393,768
==========
Fully diluted earnings per share $ 0.04
======
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 1,614,565
<SECURITIES> 0
<RECEIVABLES> 7,499,232
<ALLOWANCES> 0
<INVENTORY> 3,465,239
<CURRENT-ASSETS> 13,388,946
<PP&E> 72,932,251
<DEPRECIATION> 0
<TOTAL-ASSETS> 91,802,335
<CURRENT-LIABILITIES> 12,293,131
<BONDS> 39,819,843
0
0
<COMMON> 8,694
<OTHER-SE> 23,901,718
<TOTAL-LIABILITY-AND-EQUITY> 91,802,335
<SALES> 10,031,076
<TOTAL-REVENUES> 20,330,615
<CGS> 7,301,232
<TOTAL-COSTS> 17,887,809
<OTHER-EXPENSES> 92,328
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,533,173
<INCOME-PRETAX> 731,805
<INCOME-TAX> 255,341
<INCOME-CONTINUING> 476,464
<DISCONTINUED> (111,086)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 365,378
<EPS-PRIMARY> 0.06
<EPS-DILUTED> 0.06
</TABLE>
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