EX-99.1 2 d432502dex991.htm PRESS RELEASE, DATED NOVEMBER 1, 2012, ISSUED BY COMMERCIAL BARGE LINE COMPANY. Press Release, dated November 1, 2012, issued by Commercial Barge Line Company.

Exhibit 99.1

Commercial Barge Line Company Announces Results for Third Quarter 2012

Highlights

 

   

Adjusted EBITDAR for the trailing twelve month period ended September 30, 2012 was $229.5 million, including a year-to-date adjustment of $26.7 million for weather-related costs — a 31.7% increase over Adjusted EBITDAR for the year ended December 31, 2011.

 

   

Adjusted EBITDAR of $55.1 million for the current quarter, including an adjustment of $24.2 million for weather-related costs, increased 14.5% from prior year quarter.

 

   

Operating income of $7.1 million in the current quarter was down $4.7 million but up $59.6 million for the nine months ended September 30, 2012 compared to the comparable prior year periods.

 

   

Strong liquidity with $169.7 million in available borrowing capacity.

JEFFERSONVILLE, IN November 1, 2012 Commercial Barge Line Company (the “Company,”) today announced results for the quarter and nine months ended September 30, 2012. Revenues for the current quarter decreased 27.9% over the prior year’s third quarter to $166.9 million reflecting the challenging operating conditions on the Mississippi River resulting from the current year’s extraordinary drought. Revenues for the current nine month period were relatively flat versus the prior nine month period at $603.7 million. For the current quarter, Adjusted EBITDAR, which reflects adjustments for losses associated with the current operating conditions, was $55.1 million, a 14.5% increase from $48.1 million for the prior quarter. Adjusted EBITDAR for the third quarter 2012 reflects $24.2 million of the adjustment related to lower revenue and higher costs incurred as a result of the drought. On a trailing-twelve month basis, Adjusted EBITDAR was $229.5 million, an increase of 31.7% over Adjusted EBITDAR of $174.3 million for the year ended December 31, 2011.

Commenting on the results, Mark Knoy, President and Chief Executive Officer, stated, “The low water levels on the Mississippi River and the extreme drought conditions during the third quarter have resulted in some of the most challenging conditions our industry has experienced in nearly a half century in terms of severity, duration and the impact on the agriculture industry. Current operating conditions and the drought’s impact on what had previously been expected to be an all-time record US corn harvest have led to lower revenues and higher costs in the short-term. Initial USDA forecasts, had suggested harvest levels that would have resulted in corn exports through the Gulf at levels nearly twice what we currently expect them to be. In those conditions, the $21 million of revenue we actually realized in grain transport during the third quarter would have been significantly improved.”

Mr. Knoy went on to say, “While the current quarter’s events have set the industry back in the near-term, transportation of commodities via the inland waterways continues to be the most cost effective and environmentally friendly mode of transport and we believe the fundamentals of our business are strong. Industry sources project an increase in demand for covered hopper transport


during 2013, after adjusting for the effect of the 2012 drought, increasing pressure on barge availability and rates. In addition, we remain optimistic that the operating improvements we achieved over the past several quarters will continue to drive sustainable positive momentum in our financial performance when river conditions return to more normal levels. We are also pleased with the continued opportunities that we are experiencing in the liquid market. In the near-term, we are maintaining our focus on operating efficiencies and taking additional actions to mitigate the impact of the current environment on our liquidity and financial performance.”

Segment Revenues

Transportation segment revenues decreased 20.3% to $156.6 million while total affreightment ton-mile volume decreased 25.2% to 6.2 billion ton-miles in the current quarter. The average number of barges in affreightment service declined by 19.5% from prior year, accounting for a significant portion of this reduction. Low water conditions during the quarter also led to reduced loading drafts and increases in transit delays, resulting in fewer tons per barge loading and a reduced fleet turn in our dry cargo sector. These conditions directly resulted in a reduction in Transportation segment revenues of approximately $19.2 million and a decline of 842 million ton-miles, or approximately 10%, during the quarter. Export coal volumes increased approximately 70% for the quarter compared to prior year; however, rates somewhat offset this improvement as they declined 10.6% from prior year. The reduced grain harvest and drought related operating conditions led to fewer dry hopper barges deployed and lower tons per barge loaded. As a result, grain shipments declined from prior year by 32.6% and rates on grain shipments were down 11.3% from prior year.

Total liquid revenues increased by $2.3 million driven by a 30% increase in our dedicated petroleum services in the Gulf coast region, partially offset by a slight decline in chemical transportation services up river. Operating conditions had less negative impact on the Company’s liquid transportation sector as these barges normally operate at much lower drafts than is required by dry cargo barges. Rates on liquid transport increased by 3.7% for the quarter compared to prior year.

Manufacturing segment revenues decreased 70.7% to $10.3 million, as 18 barges were sold to third-parties compared to 63 sold in the prior year quarter. This decline is attributable to the shift of a significant portion of the manufacturing segment’s capacity to the production of barges for the transportation segment during the third quarter, as 15 new liquid barges and 35 new dry hopper barges were placed in service in the current quarter compared to two oversize liquid tank barges and 30 dry hopper barges in the prior year quarter.

Transportation segment revenues were down slightly at $513.1 million for the nine month period, with the third quarter revenue losses associated with the drought diminishing an otherwise solid year-over-year performance despite a difficult pricing environment. Total affreightment ton-mile volume decreased 4.6% to 21.7 billion ton-miles, produced with an affreightment barge fleet that was 17.3% smaller. After giving consideration to the estimated impact of the third quarter drought conditions discussed above, total ton-miles declined less than 1% for the year-to-date period.


Manufacturing segment revenues for the current nine month period increased 3.4% to $90.6 million, with 162 total barges sold to third parties in both the current and prior year nine month periods.

Operating Results

Operating income decreased by $4.7 million compared to the prior year quarter, reflecting the degradation in Mississippi River operating conditions experienced during the quarter. These losses were partially offset by a one-time gain of $11.4 million recognized on the resolution of an insurance claim related to a terminal damaged in the 2011 flood. For the quarter, the Company reported a net loss of $0.3 million. For the nine month period, operating income and net income rose $59.6 million and $35.6 million, respectively.

Adjusted EBITDAR for the three and nine months ended September 30, 2012 includes adjustments to reflect the impact of the challenging operating conditions on the Mississippi River experienced as a result of the current drought. These adjustments were estimated by comparing the Company’s actual operating performance metrics to those that were achieved during the months leading up to the drought period. The impact related to the drought is attributable to the following factors:

 

   

Reduction in Tons per Load: Extremely low Mississippi River levels limited the amount of cargo that could be carried due to reduced drafts. On average, the Company’s dry cargo tons per barge declined by nearly 7% during the quarter compared to levels that were achieved prior to the drought. This decline in tons transported resulted in a reduction in EBITDAR of $9.8 million for the quarter and $10.9 million year-to-date.

 

   

Reduction in Barges per Tow: The number of barges per tow was reduced along the Mississippi River in the most seriously impacted river segments between St. Louis and Vicksburg as part of an industry-wide agreement aimed at controlling disruptions to the flow of traffic on the river. As a result, the Company required more tow boats in service to deliver the same equivalent amount of freight based upon number of barges per tow. The cost of this excess towing capacity during the third quarter was $5.9 million and $6.0 million year-to-date.

 

   

Reduction in Asset Turns: River conditions led to more traffic disruptions on the Mississippi River south of St. Louis, resulting in a reduced turn of fleet assets. As a result, the Company was required to use more tow boat power to deliver booked freight during the quarter and the slower turn also impacted the number of revenue earning days on the barge fleet. The impact of these incremental costs and lost margin totaled $8.5 million during the quarter and $9.8 million year-to-date.

In addition, Adjusted EBITDAR for the quarter has been adjusted to eliminate the gain realized on the insurance settlement discussed earlier of $11.4 million given its non-recurring nature.


After consideration of the adjustments discussed above, Adjusted EBITDAR was $55.1 million, a 14.5% increase over $48.1 million for the prior quarter. This increase over prior year can be attributed to improved boat productivity and other operating costs of $2.3 million, reduced repairs and maintenance costs of $6.7 million, increased gains on the sale of barges of $4.3 million and reduced compensation costs of $1.5 million, partially offset by lost margin on lower net affreightment volumes of $2.6 million and pricing of $1.8 million.

For the current nine month period, Adjusted EBITDAR was $169.3 million, a 48.5% increase over $114.0 million for the prior nine month period. On a trailing-twelve month basis, Adjusted EBITDAR was $229.5 million, an increase of 31.7% over Adjusted EBITDAR of $174.3 million for the year ended December 31, 2011.

Outlook

Commenting on the Company’s outlook, Mr. Knoy said, “Operating conditions on the Mississippi River below St. Louis continue to impact our operating efficiencies at levels comparable to what we experienced during the third quarter. We cannot predict how long we will face these conditions but we will continue to tightly control expenses and maintain the safety of our employees, our equipment, the environment and our customers’ cargoes until conditions improve.

“We continue to see opportunities in the energy sector, as US coal exports are strong and North American oil production continues to rise. Tank barge capacity in the industry continues to be in tight supply and we are exploring a number of strategies that we believe will take advantage of these market dynamics. However, a number of factors will impact the dry cargo market for the remainder of 2012 and into next year. Coal demand at domestic utilities remains sluggish as a result of high inventories and coal’s recent competitive disadvantage to natural gas and increased emissions regulations. This reduced demand has led to pricing pressure for open-top barge freight in the US and we expect that dynamic to continue. In addition, the drought had a significant negative impact on this year’s grain harvest, which is reducing projected grain exports to levels not seen since the mid-1990s. As a result, we expect that demand for grain transport in the coming months will be significantly reduced from demand in the prior year. Finally, the overall economic conditions in the United States have resulted in reduced industrial demand for our dry cargo services.”

Mr. Knoy went on to say, “We are responding to these conditions by remaining very focused on operating efficiencies, including maintaining our network density and tight coordination of multiple freight movements to minimize non-revenue generating activities. In addition, we continue to review our previously announced capital spending plan to ensure that we are deploying our new investments to those opportunities that present the best returns.”


Liquidity and Debt Position

At September 30, 2012, we had total long-term debt of $444.0 million, including $200.0 million related to the 2017 Notes, $25.0 million in unamortized premium recorded at the Acquisition-date to recognize their fair value, and $219.0 million drawn on our Credit Facility. At this level of debt, we had $169.7 million in remaining availability under our Credit Facility. The Credit Facility has no maintenance financial covenants unless borrowing availability is less than $48.8 million. At September 30, 2012, debt levels were $120.9 million above this threshold.

As of September 30, 2012, the present value of lease payments associated with revenue generating equipment was $45.5 million. Including the present value of these lease payments and excluding the unamortized premium on the 2017 Notes, the Company’s total funded net long-term debt was $464.5 million as of September 30, 2012. The ratio of funded net debt to Adjusted EBITDAR for the trailing twelve months ended September 30, 2012 was 2.0 times, reflecting an improvement from 2.3 times as of December 31, 2011.

About the Company

Commercial Barge Line Company, headquartered in Jeffersonville, Indiana, is an integrated marine transportation and service company operating in the United States Jones Act trades. For more information about the Company, visit the Company’s website at http://www.aclines.com/.

Non-GAAP Measures

Adjusted EBITDAR is a non-GAAP financial measure that the Company believes provides investors with a useful tool for analyzing its operating results as it eliminates the impact of certain non-comparable items and discontinued operations. The Company has included a reconciliation of its financial results to Adjusted EBITDAR elsewhere in this release.

Forward-Looking Statements

This release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s present expectations and beliefs about future events. As with any projection or forecast, these statements are inherently susceptible to risks, uncertainty and changes in circumstance. Important factors could cause actual results to differ materially from those expressed or implied by the forward-looking statements and should be considered in evaluating the outlook of Commercial Barge Line Company. Risks and uncertainties are detailed from time to time in Commercial Barge Line Company’s filings with the SEC, including our report on Form 10-K for the year ended December 31, 2011. Commercial Barge Line Company is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of changes, new information, subsequent events or otherwise.


COMMERCIAL BARGE LINE COMPANY

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited - In thousands)

 

      Three Months
Ended
September 30,
2012
    Three Months
Ended
September 30,
2011
    Nine Months
Ended
September 30,
2012
    Nine Months
Ended
September 30,
2011
 

Revenues

        

Transportation and Services

   $ 156,588      $ 196,350      $ 513,057      $ 520,793   

Manufacturing

     10,297        35,086        90,636        87,640   
  

 

 

   

 

 

   

 

 

   

 

 

 

Revenues

     166,885        231,436        603,693        608,433   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cost of Sales

        

Transportation and Services

     138,232        172,372        447,389        498,302   

Manufacturing

     9,607        34,932        81,247        86,377   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cost of Sales

     147,839        207,304        528,636        584,679   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross Profit

     19,046        24,132        75,057        23,754   

Selling, General and Administrative Expenses

     11,923        12,276        34,623        42,966   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Income (Loss)

     7,123        11,856        40,434        (19,212
  

 

 

   

 

 

   

 

 

   

 

 

 

Other Expense (Income)

        

Interest Expense

     7,874        7,553        23,185        22,645   

Other, Net

     (181     (188     (484     (532
  

 

 

   

 

 

   

 

 

   

 

 

 

Other Expense

     7,693        7,365        22,701        22,113   
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) Income from Continuing Operations Before Income Taxes

     (570     4,491        17,733        (41,325

Income Taxes (Benefit)

     (273     (486     6,659        (16,784
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) Income from Continuing Operations

     (297     4,977        11,074        (24,541

Discontinued Operations, Net of Tax

     —          85        26        122   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (Loss) Income

   $ (297   $ 5,062      $ 11,100      $ (24,419
  

 

 

   

 

 

   

 

 

   

 

 

 


COMMERCIAL BARGE LINE COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

     September 30,
2012
    December 31,
2011
 
     (Unaudited)        
ASSETS     

Current Assets

    

Cash and Cash Equivalents

   $ 2,667      $ 938   

Accounts Receivable, Net

     77,700        87,368   

Inventory

     62,318        62,483   

Prepaid and Other Current Assets

     37,299        27,310   
  

 

 

   

 

 

 

Total Current Assets

     179,984        178,099   

Properties, Net

     982,060        935,576   

Investment in Equity Investees

     6,619        6,470   

Accounts Receivable, Related Parties, Net

     12,558        12,021   

Goodwill

     17,692        17,692   

Other Assets

     37,590        45,521   
  

 

 

   

 

 

 

Total Assets

   $ 1,236,503      $ 1,195,379   
  

 

 

   

 

 

 
LIABILITIES     

Current Liabilities

    

Accounts Payable

   $ 39,123      $ 48,653   

Accrued Payroll and Fringe Benefits

     14,273        20,035   

Deferred Revenue

     15,252        15,251   

Accrued Claims and Insurance Premiums

     12,340        13,823   

Other Current Liabilities

     41,840        41,977   
  

 

 

   

 

 

 

Total Current Liabilities

     122,828        139,739   

Long Term Debt

     443,979        384,225   

Pension and Post Retirement Liabilities

     62,526        67,531   

Deferred Tax Liability

     180,665        178,602   

Other Long Term Liabilities

     35,746        46,335   
  

 

 

   

 

 

 

Total Liabilities

     845,744        816,432   
  

 

 

   

 

 

 
SHAREHOLDER’S EQUITY     

Other Capital

     424,432        424,932   

Retained Deficit

     (9,727     (20,826

Accumulated Other Comprehensive Loss

     (23,946     (25,159
  

 

 

   

 

 

 

Total Shareholder’s Equity

     390,759        378,947   
  

 

 

   

 

 

 

Total Liabilities and Shareholder’s Equity

   $ 1,236,503      $ 1,195,379   
  

 

 

   

 

 

 


COMMERCIAL BARGE LINE COMPANY

NET INCOME (LOSS) TO ADJUSTED EBITDA AND EBITDAR RECONCILIATION

( Unaudited - Dollars in thousands)

 

     For the Three Months Ended
September 30,
    For the Nine Months Ended
September 30,
 
     2012     2011     2012     2011  

Consolidated Net Income (Loss)

   $ (297   $ 5,062      $ 11,100      $ (24,419

Less Discontinued Operations, Net of Income Taxes

     —          85        26        122   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (Loss) Income from Continuing Operations

     (297     4,977        11,074        (24,541

Adjustments from Continuing Operations:

        

Interest Income

     —          (4     (5     (162

Interest Expense

     7,874        7,553        23,185        22,645   

Depreciation and Amortization

     26,148        26,626        80,353        82,020   

Taxes

     (273     (486     6,659        (16,784
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA from Continuing Operations

     33,452        38,666        121,266        63,178   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjustments from Continuing Operations for EBITDAR:

        

Long-term Boat and Barge Rents

     3,822        3,873        11,592        11,550   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDAR from Continuing Operations

     37,274        42,539        132,858        74,728   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjustments from Discontinued Operations:

        

Interest Income

     —          —          —          (18

Depreciation and Amortization

     —          23        —          61   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA from Discontinued Operations

     —          108        26        165   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjustments from Discontinued Operations for EBITDAR:

        
        
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDAR from Discontinued Operations

     —          108        26        165   
  

 

 

   

 

 

   

 

 

   

 

 

 

Consolidated EBITDAR

   $ 37,274      $ 42,647      $ 132,884      $ 74,893   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other Adjustments to EBITDAR

        

Other Non-cash or Non-comparable charges included in net income:

        

Continuing Ops

        

Share based compensation and restructuring

   $ 21      $ 943      $ 234      $ 4,586   

Other restructuring/acqusition-related costs and consulting

     3,887        3,455        9,671        14,994   

Other non-cash impacts of purchase accounting

     (2,028     (730     (6,084     (1,952

Purchase accounting impact on boat/barge gains

     2,866        559        28,311        3,688   

Gain on excess boat sales

     335        —          (10,943     —     

Insurance gain on 2011 flood claims

     (11,442     —          (11,442     —     

Drought, flood and other costs

     24,164        1,325        26,714 (A)      17,943   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Continuing Ops

     17,803        5,552        36,461        39,259   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDAR from Continuing Ops

     55,077        48,091        169,319        113,987   
  

 

 

   

 

 

   

 

 

   

 

 

 

Discontinued Ops

        

Merger Related and Consulting Expenses

     —          —          —          20   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Discontinued

     —          —          —          20   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDAR form Discontinued Ops

     —          108        26        185   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Consolidated EBITDAR

   $ 55,077      $ 48,199      $ 169,345      $ 114,172   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(A) In order to provide a comprehensive estimate of the total drought effect, we have included $2,550 of drought related impact, incurred in June, in the nine months ended September 30, 2012. This amount was not included in adjusted EBITDAR in the second quarter 10Q filed on August 14, 2012 as materiality and duration of the drought were not known at that time.


COMMERCIAL BARGE LINE COMPANY

Statement of Operating Income by Reportable Segment

(Dollars in thousands)

(Unaudited)

 

     Reportable Segments     Intersegment        
     Transportation     Manufacturing     Eliminations     Total  

Three Months ended September 30, 2012

        

Total revenue

   $ 156,727      $ 47,182      $ (37,024   $ 166,885   

Less Intersegment revenues

     139        36,885        (37,024     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Revenue from external customers

     156,588        10,297        —          166,885   

Operating expense

        

Materials, supplies and other

     38,374        —          —          38,374   

Rent

     6,646        —          —          6,646   

Labor and fringe benefits

     28,262        —          —          28,262   

Fuel

     38,161        —          —          38,161   

Depreciation and amortization

     25,719        —          —          25,719   

Taxes, other than income taxes

     2,684        —          —          2,684   

Gain on disposition of equipment

     (1,614     —          —          (1,614

Cost of goods sold

     —          9,607        —          9,607   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of sales

     138,232        9,607        —          147,839   

Selling, general & administrative

     11,059        864        —          11,923   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     149,291        10,471        —          159,762   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

   $ 7,297      $ (174   $ —        $ 7,123   
  

 

 

   

 

 

   

 

 

   

 

 

 

Three Months ended September 30, 2011

        

Total revenue

   $ 196,694      $ 56,907      $ (22,165   $ 231,436   

Less Intersegment revenues

     344        21,821        (22,165     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Revenue from external customers

     196,350        35,086        —          231,436   

Operating expense

        

Materials, supplies and other

     63,391        —          —          63,391   

Rent

     6,960        —          —          6,960   

Labor and fringe benefits

     28,875        —          —          28,875   

Fuel

     45,347        —          —          45,347   

Depreciation and amortization

     24,645        —          —          24,645   

Taxes, other than income taxes

     3,094        —          —          3,094   

Gain on disposition of equipment

     60        —          —          60   

Cost of goods sold

     —          34,932        —          34,932   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of sales

     172,372        34,932        —          207,304   

Selling, general & administrative

     11,823        453        —          12,276   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     184,195        35,385        —          219,580   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

   $ 12,155      $ (299   $ —        $ 11,856   
  

 

 

   

 

 

   

 

 

   

 

 

 


COMMERCIAL BARGE LINE COMPANY

Statement of Operating Income by Reportable Segment

(Dollars in thousands)

(Unaudited)

 

     Reportable Segments     Intersegment
Eliminations
    Total  
     Transportation     Manufacturing      

Nine Months ended September 30, 2012

        

Total revenue

   $ 513,489      $ 153,233      $ (63,029   $ 603,693   

Less Intersegment revenues

     432        62,597        (63,029     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Revenue from external customers

     513,057        90,636        —          603,693   

Operating expense

        

Materials, supplies and other

     146,209        —          —          146,209   

Rent

     20,073        —          —          20,073   

Labor and fringe benefits

     85,084        —          —          85,084   

Fuel

     120,960        —          —          120,960   

Depreciation and amortization

     76,019        —          —          76,019   

Taxes, other than income taxes

     8,545        —          —          8,545   

Gain on disposition of equipment

     (9,501     —          —          (9,501

Cost of goods sold

     —          81,247        —          81,247   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of sales

     447,389        81,247        —          528,636   

Selling, general & administrative

     31,591        3,032        —          34,623   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     478,980        84,279        —          563,259   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

   $ 34,077      $ 6,357      $ —        $ 40,434   
  

 

 

   

 

 

   

 

 

   

 

 

 

Nine Months ended September 30, 2011

        

Total revenue

   $ 521,674      $ 121,488      $ (34,729   $ 608,433   

Less Intersegment revenues

     881        33,848        (34,729     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Revenue from external customers

     520,793        87,640        —          608,433   

Operating expense

        

Materials, supplies and other

     181,647        —          —          181,647   

Rent

     20,924        —          —          20,924   

Labor and fringe benefits

     84,801        —          —          84,801   

Fuel

     126,919        —          —          126,919   

Depreciation and amortization

     76,072        —          —          76,072   

Taxes, other than income taxes

     9,207        —          —          9,207   

Gain on disposition of equipment

     (1,268     —          —          (1,268

Cost of goods sold

     —          86,377        —          86,377   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of sales

     498,302        86,377        —          584,679   

Selling, general & administrative

     41,505        1,461        —          42,966   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     539,807        87,838        —          627,645   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

   $ (19,014   $ (198   $ —        $ (19,212