bnsf 1Q 2001 Investors Report

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bnsf 1Q 2001 Investors Report

  1. 1. 1st Quarter 2001 Investors’ Report
  2. 2. BURLINGTON NORTHERN SANTA FE CORPORATION INVESTORS' REPORT - UNAUDITED 1st Quarter 2001 INDEX Page Earnings Press Release 1-2 Consolidated Income Information 3 Consolidated Balance Sheet Information 4 Consolidated Cash Flow Information 5 Operating Statistics 6 Revenue Statistics by Commodity - 1st Quarter 2001 7 - 2000 by Quarter 8 Capital Expenditures and Track Maintenance 9
  3. 3. NEWS Contact: Richard Russack FOR IMMEDIATE RELEASE (817) 352-6425 Burlington Northern Santa Fe Reports First Quarter 2001 Results • Earnings of $0.36 per diluted share, before extraordinary charge, compared with first quarter 2000 earnings of $0.55 per diluted share. First quarter 2001 earnings include $40 million or $0.10 per diluted share of previously announced non- recurring losses related to non-rail investments. • Freight revenues were $2.26 billion, up slightly on 4 percent higher ton-miles, despite continued softness in the U.S. economy. • Fuel expenses were $46 million higher than 2000. • Winter weather and higher other energy-related costs were estimated at $25 million more than 2000. • First quarter operating income of $419 million is $91 million lower than first quarter 2000 operating income of $510 million. FORT WORTH, Texas, April 24, 2001 - - Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported first quarter 2001 earnings of $0.36 per diluted share, before an extraordinary charge, compared with first quarter 2000 earnings of $0.55 per diluted share. First quarter 2001 earnings include $40 million or $0.10 per diluted share of previously announced non-recurring losses related to non-rail investments. “BNSF’s well-balanced business portfolio allowed us to achieve a slight increase in revenue despite the continued softness of the U.S. economy,” said Matt Rose, BNSF President and Chief Executive Officer. “However, an additional $46 million in fuel expenses, more severe winter weather and higher electricity and other energy costs contributed to a 7 percent increase in expenses as compared with a year ago.” 1
  4. 4. Freight revenues for the 2001 first quarter were $2.26 billion, up slightly on 4 percent higher ton-miles compared with the same 2000 period. Agricultural Commodities revenues increased $36 million, or 11 percent, to $361 million, primarily due to increased demand for soybeans moving through the Pacific Northwest to China and increased northern spring wheat moving to the upper Midwest and eastern domestic markets. Consumer revenues increased $6 million, or 1 percent, to $807 million reflecting new truckload business and higher international volumes for intermodal, offset by decreased automotive shipments. Coal revenues declined $3 million, or 1 percent, to $526 million as a result of lower revenue per unit on certain contract renewals; this was partially offset by increased demand for western coal due to colder weather, tight eastern coal supplies and high natural gas prices. Industrial revenues fell $18 million or 3 percent, to $569 million because of production cutbacks affecting most sectors. Operating expenses of $1.87 billion were $119 million higher than the 2000 first quarter. Expenses increased primarily from the impact of more severe winter weather conditions, higher electricity and other energy costs, increased compensation and benefit rates, and higher ton- miles. Fuel expense was $46 million higher than 2000 as the average cost of diesel fuel per gallon increased 14 cents. Operating income was $419 million for the first quarter 2001 compared with $510 million a year ago. The operating ratio increased to 81.5 percent for the first quarter 2001 compared with 77.3 percent in 2000. Common Stock Repurchases During the first quarter, BNSF repurchased 2.2 million shares at an average price of $28.86 per share, bringing total repurchases under BNSF’s 120 million share-repurchase program to 93.9 million shares at an average price of $25.57 per share since the program was announced in July 1997. Through The Burlington Northern and Santa Fe Railway Company, BNSF operates one of the largest railroad networks in the United States, with 33,500 route miles covering 28 states and two Canadian provinces. Consolidated financial statements follow. 2
  5. 5. Burlington Northern Santa Fe Corporation Consolidated Income Information * (in millions, except per share data) Three Months Ended March 31, 2001 2000 Operating revenues Freight revenues $ 2,263 $ 2,242 Other revenues 29 22 Total operating revenues 2,292 2,264 Operating expenses Compensation and benefits 729 698 Purchased services 261 258 Depreciation and amortization 228 222 Equipment rents 187 179 Fuel 257 211 Materials and other 211 186 Total operating expenses 1,873 1,754 Operating income 419 510 Interest expense 120 104 Other income (expense) - net (73) (15) Income before income taxes 226 391 Income tax expense 86 148 Income before extraordinary charge 140 243 Extraordinary charge, net of tax (6) - Net income $ 134 $ 243 Earnings per share Diluted Before extraordinary charge $ 0.36 $ 0.55 After extraordinary charge $ 0.34 $ 0.55 Diluted average shares outstanding 394.1 445.5 Operating ratio 81.5% 77.3% * Other income (expense) - net in 2001 includes $64 million pre-tax ($40 million after-tax or $0.10 per diluted share) of previously announced non-recurring losses related to non-rail investments. The extraordinary charge reflects a loss on early extinguishment of debt. 3
  6. 6. Burlington Northern Santa Fe Corporation Consolidated Balance Sheet Information (in millions, except per share amounts) March 31, December 31, 2001 2000 Assets Current assets Cash and cash equivalents $ 15 $ 11 Accounts receivable, net 281 314 Materials and supplies 209 220 Current portion of deferred income taxes 297 299 Other current assets 128 132 Total current assets 930 976 Property and equipment, net 22,376 22,369 Other assets 1,099 1,030 Total assets $ 24,405 $ 24,375 Liabilities and Stockholders' Equity Current liabilities Accounts payable and other current liabilities $ 1,826 $ 1,954 Long-term debt due within one year 235 232 Total current liabilities 2,061 2,186 Long-term debt and commercial paper 6,636 6,614 Deferred income taxes 6,480 6,422 Casualty and environmental liabilities 409 430 Employee merger and separation costs 247 262 Other liabilities 977 981 Total liabilities 16,810 16,895 Stockholders' equity Common stock and additional paid-in capital 5,507 5,433 Retained earnings 4,591 4,505 Treasury stock (2,482) (2,413) Unearned compensation (47) (35) Other 26 (10) Total stockholders' equity 7,595 7,480 Total liabilities and stockholders' equity $ 24,405 $ 24,375 Total debt to total capital 47.5% 47.8% Book value per share $ 19.38 $ 19.10 Common shares outstanding 391.8 391.6 4
  7. 7. Burlington Northern Santa Fe Corporation Consolidated Cash Flow Information (in millions) Three Months Ended March 31, 2001 2000 Operating Activities Net income $ 134 $ 243 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 228 222 Deferred income taxes 39 56 Employee merger and separation costs paid (17) (20) Other - net 67 18 Changes in working capital (91) 21 Net cash provided by operating activities 360 540 Investing Activities and Dividends Paid Capital expenditures (234) (252) Other - net (66) (240) Dividends paid (48) (55) Free cash flow (deficit) after dividends paid 12 (7) Financing Activities Purchase of BNSF common stock (65) (583) Proceeds from stock options exercised 45 1 Other - net (9) - Net debt incurred $ (17) $ (589) 5
  8. 8. Burlington Northern Santa Fe Corporation Operating Statistics Three Months Ended March 31, 2001 2000 Cars/units (thousands) 1,986 1,988 Average revenue per car/unit $ 1,139 $ 1,128 Revenue ton miles (millions) 125,727 121,004 Gross ton miles (millions) 223,206 215,165 RTM/GTM 0.56 0.56 Freight revenue/thousand RTM $ 18.00 $ 18.53 Operating expense/thousand RTM $ 14.90 $ 14.50 Freight revenue/thousand GTM $ 10.14 $ 10.42 Operating expense/thousand GTM $ 8.39 $ 8.15 Compensation and benefits/thousand GTM $ 3.27 $ 3.24 Employees (a) 38,270 39,241 Thousand RTM/average employee 3,285 3,084 Gallons of fuel used (millions) 297 292 Average price per gallon of fuel (cents) (b) 86.5 72.3 GTM/gallon of fuel 752 737 Freight train miles (millions) 36 35 GTM/freight train hours (thousands) 146 155 (a) Represents average mid-month count for the period. (b) Includes handling, taxes and hedge effect. 6
  9. 9. Burlington Northern Santa Fe Corporation Revenue Statistics by Commodity * Three Months Ended March 31, Percent Revenues (in millions) 2001 2000 Change Intermodal $ 631 $ 619 1.9 % Automotive 110 124 (11.3) Other Consumer 66 58 13.8 Total Consumer 807 801 0.7 Industrial 569 587 (3.1) Coal 526 529 (0.6) Agricultural Commodities 361 325 11.1 Total freight revenue 2,263 2,242 0.9 Other revenue 29 22 31.8 Total revenues $ 2,292 $ 2,264 1.2 % Cars/Units (in thousands) Intermodal 807 800 0.9 % Automotive 53 67 (20.9) Other Consumer 40 36 11.1 Total Consumer 900 903 (0.3) Industrial 379 403 (6.0) Coal 516 507 1.8 Agricultural Commodities 191 175 9.1 Total cars/units 1,986 1,988 (0.1) % Average Revenue Per Car/Unit Intermodal $ 782 $ 774 1.0 % Automotive 2,075 1,851 12.1 Other Consumer 1,650 1,611 2.4 Total Consumer 897 887 1.1 Industrial 1,501 1,457 3.0 Coal 1,019 1,043 (2.3) Agricultural Commodities 1,890 1,857 1.8 Average revenue per car/unit $ 1,139 $ 1,128 1.0 % Revenue Ton-Miles (in millions) Intermodal 21,903 21,618 1.3 % Automotive 1,518 2,027 (25.1) Other Consumer 3,034 3,007 0.9 Total Consumer 26,455 26,652 (0.7) Industrial 26,652 26,708 (0.2) Coal 51,470 48,622 5.9 Agricultural Commodities 21,150 19,022 11.2 Total revenue ton-miles 125,727 121,004 3.9 % Freight Revenue Per Thousand Ton-Miles Intermodal $ 28.81 $ 28.63 0.6 % Automotive 72.46 61.17 18.5 Other Consumer 21.75 19.29 12.8 Total Consumer 30.50 30.05 1.5 Industrial 21.35 21.98 (2.9) Coal 10.22 10.88 (6.1) Agricultural Commodities 17.07 17.09 (0.1) Freight revenue per thousand ton-miles $ 18.00 $ 18.53 (2.9) % * Certain prior-period amounts have been reclassified to conform with current-period presentation. 7
  10. 10. Burlington Northern Santa Fe Corporation Revenue Statistics by Commodity * 2000 by Quarter 2000 1st 2nd 3rd 4th Full Revenues (in millions) Quarter Quarter Quarter Quarter Year Intermodal $ 619 $ 654 $ 689 $ 692 $ 2,654 Automotive 124 134 107 128 493 Other Consumer 58 65 70 68 261 Total Consumer 801 853 866 888 3,408 Industrial 587 594 583 552 2,316 Coal 529 525 549 528 2,131 Agricultural Commodities 325 265 320 347 1,257 Total freight revenue 2,242 2,237 2,318 2,315 9,112 Other revenue 22 23 24 24 93 Total revenues $ 2,264 $ 2,260 $ 2,342 $ 2,339 $ 9,205 Cars/Units (in thousands) Intermodal 800 855 906 880 3,441 Automotive 67 70 54 58 249 Other Consumer 36 41 44 40 161 Total Consumer 903 966 1,004 978 3,851 Industrial 403 409 415 386 1,613 Coal 507 487 518 511 2,023 Agricultural Commodities 175 150 176 179 680 Total cars/units 1,988 2,012 2,113 2,054 8,167 Average Revenue Per Car/Unit Intermodal $ 774 $ 765 $ 760 $ 786 $ 771 Automotive 1,851 1,914 1,981 2,207 1,980 Other Consumer 1,611 1,585 1,591 1,700 1,621 Total Consumer 887 883 863 908 885 Industrial 1,457 1,452 1,405 1,430 1,436 Coal 1,043 1,078 1,060 1,033 1,053 Agricultural Commodities 1,857 1,767 1,818 1,939 1,849 Average revenue per car/unit $ 1,128 $ 1,112 $ 1,097 $ 1,127 $ 1,116 Revenue Ton-Miles (in millions) Intermodal 21,618 23,122 24,885 23,371 92,996 Automotive 2,027 2,086 1,650 1,860 7,623 Other Consumer 3,007 2,753 3,093 3,017 11,870 Total Consumer 26,652 27,961 29,628 28,248 112,489 Industrial 26,708 27,811 27,247 24,998 106,764 Coal 48,622 50,187 53,530 51,964 204,303 Agricultural Commodities 19,022 13,721 17,079 18,581 68,403 Total revenue ton-miles 121,004 119,680 127,484 123,791 491,959 Revenue Per Thousand Ton-Miles Intermodal $ 28.63 $ 28.28 $ 27.69 $ 29.61 $ 28.54 Automotive 61.17 64.24 64.85 68.82 64.67 Other Consumer 19.29 23.61 22.63 22.54 21.99 Total Consumer 30.05 30.51 29.23 31.44 30.30 Industrial 21.98 21.36 21.40 22.08 21.69 Coal 10.88 10.46 10.26 10.16 10.43 Agricultural Commodities 17.09 19.31 18.74 18.67 18.38 Revenue per thousand ton-miles $ 18.53 $ 18.69 $ 18.18 $ 18.70 $ 18.52 * Certain prior-period amounts have been reclassified to conform with current-period presentation. 8
  11. 11. Burlington Northern Santa Fe Corporation Capital Expenditures and Track Maintenance Three Months Ended March 31, 2001 2000 Capital Expenditures (in millions) Maintenance of way Rail $ 40 $ 40 Ties 43 41 Surfacing 16 27 Other 63 57 Total maintenance of way 162 165 Mechanical 26 42 Information services 9 13 Other 9 22 Total maintenance of business 206 242 Terminal and line expansion 23 8 Other 5 2 Total capital expenditures $ 234 $ 252 Operating lease commitments $ - $ 142 Track Maintenance Track miles of rail laid Maintenance of business 82 112 Expansion projects - - Total 82 112 Cross ties inserted (thousands) Maintenance of business 330 414 Expansion projects 1 2 Total 331 416 Track resurfaced (miles) 1,252 1,676 9

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