Guarantor Financial Statement Information

6 Months Ended

Jun. 30, 2011

Guarantor Financial Statement Information [Abstract]

GUARANTOR FINANCIAL STATEMENT INFORMATION

17. GUARANTOR FINANCIAL STATEMENT INFORMATION

In June 2009, the Company sold in a private offering $740.0 million aggregate principal amount of 9.25% senior secured notes which mature on July 1, 2017. In October 2009, the Company filed with the SEC a Form S-4 registration statement to exchange the privately placed notes with registered notes. The terms of the registered notes are substantially identical to those of the privately placed notes. The notes are jointly and severally guaranteed on a senior secured basis by all of the Company’s existing and future wholly-owned domestic restricted subsidiaries, with certain exceptions. All guarantor subsidiaries are 100% owned by the Company. All amounts in the following tables are in thousands.

RailAmerica, Inc.

Consolidating Balance Sheet
June 30, 2011

					Non
	Company		Guarantor		Guarantor
	(Parent)		Subsidiaries		Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	111,470	$	5,012	$	—		$	116,482
Accounts and notes receivable, net of allowance		3,502		80,249		14,992		—			98,743
Current deferred tax assets		27,499		—		—		—			27,499
Other current assets		317		21,786		3,208		—			25,311
Total current assets		31,318		213,505		23,212		—			268,035
Property, plant and equipment, net		725		912,836		85,396		—			998,957
Intangible Assets		—		102,120		37,912		—			140,032
Goodwill		—		204,679		8,093					212,772
Other assets		11,479		931		—		—			12,410
Investment in and advances to affiliates		1,267,114		1,120,542		46,999		(2,434,655	)		—
Total assets	$	1,310,636	$	2,554,613	$	201,612	$	(2,434,655	)	$	1,632,206
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Current maturities of long-term debt	$	—	$	290	$	—	$	—		$	290
Accounts payable		5,382		63,254		12,478		—			81,114
Accrued expenses		29,327		23,730		3,561		—			56,618
Total current liabilities		34,709		87,274		16,039		—			138,022
Long-term debt, less current maturities		—		1,996		—		—			1,996
Senior secured notes		572,338		—		—		—			572,338
Deferred income taxes		19,573		181,058		22,087		—			222,718
Other liabilities		5,513		12,640		476		—			18,629
Stockholders’ equity:
Common stock		522		1,493		—		(1,493	)		522
Additional paid-in capital		589,005		2,231,044		127,263		(2,358,307	)		589,005
Retained earnings		78,288		38,974		15,603		(54,577	)		78,288
Accumulated other comprehensive income		10,688		134		20,144		(20,278	)		10,688
Total stockholders’ equity		678,503		2,271,645		163,010		(2,434,655	)		678,503
Total liabilities and stockholders’ equity	$	1,310,636	$	2,554,613	$	201,612	$	(2,434,655	)	$	1,632,206

Consolidating Statement of Operations
For the three months ended June 30, 2011

							Non
	Company			Guarantor			Guarantor
	(Parent)			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Operating revenue	$	61		$	122,567		$	16,587		$	—		$	139,215
Operating expenses:
Labor and benefits		6,130			31,331			4,398			—			41,859
Equipment rents		27			8,343			519			—			8,889
Purchased services		1,478			9,233			616			—			11,327
Diesel fuel		—			12,301			2,277			—			14,578
Casualties and insurance		221			4,384			350			—			4,955
Materials		33			5,462			433			—			5,928
Joint facilities		—			2,543			7			—			2,550
Other expenses		913			8,650			1,109			—			10,672
Track maintenance expense reimbursement		(5,133	)		—			—			—			(5,133	)
Net gain on sale of assets		—			(58	)		(6	)		—			(64	)
Impairment of assets		—			3,193			27			—			3,220
Depreciation and amortization		5			10,791			940			—			11,736
Total operating expenses		3,674			96,173			10,670			—			110,517
Operating (loss) income		(3,613	)		26,394			5,917			—			28,698
Interest expense		(3,624	)		(13,509	)		(1,010	)		—			(18,143	)
Equity in earnings of subsidiaries		11,112			—			—			(11,112	)		—
Other income (loss)		7,175			(4,557	)		(2,123	)		—			495
Income from continuing operations before income taxes		11,050			8,328			2,784			(11,112	)		11,050
Provision for income taxes		2,350			—			—			—			2,350
Net income	$	8,700		$	8,328		$	2,784		$	(11,112	)	$	8,700

Consolidating Statement of Operations
For the six months ended June 30, 2011

							Non
	Company			Guarantor			Guarantor
	(Parent)			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Operating revenue	$	115		$	229,755		$	34,282		$	—		$	264,152
Operating expenses:
Labor and benefits		13,261			61,522			8,693			—			83,476
Equipment rents		50			16,345			1,160			—			17,555
Purchased services		3,618			15,551			1,264			—			20,433
Diesel fuel		—			23,883			4,862			—			28,745
Casualties and insurance		442			5,898			749			—			7,089
Materials		75			10,074			864			—			11,013
Joint facilities		—			4,740			15			—			4,755
Other expenses		1,694			16,306			2,605			—			20,605
Track maintenance expense reimbursement		(9,283	)		—			—			—			(9,283	)
Net loss (gain) on sale of assets		—			160			(17	)		—			143
Impairment of assets		—			3,193			27			—			3,220
Depreciation and amortization		9			21,629			1,862			—			23,500
Total operating expenses		9,866			179,301			22,084			—			211,251
Operating (loss) income		(9,751	)		50,454			12,198			—			52,901
Interest expense		(7,732	)		(26,999	)		(2,003	)		—			(36,734	)
Equity in earnings of subsidiaries		20,286			—			—			(20,286	)		—
Other income (loss)		14,399			(9,118	)		(4,246	)		—			1,035
Income from continuing operations before income taxes		17,202			14,337			5,949			(20,286	)		17,202
Provision for income taxes		4,417			—			—			—			4,417
Net income	$	12,785		$	14,337		$	5,949		$	(20,286	)	$	12,785

Consolidating Statement of Cash Flows
For the six months ended June 30, 2011

							Non
	Company			Guarantor			Guarantor
	(Parent)			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	12,785		$	14,337		$	5,949		$	(20,286	)	$	12,785
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including amortization costs classified in interest expense		2,152			21,861			1,851			—			25,864
Equity in earnings of subsidiaries		(20,286	)		—			—			20,286			—
Amortization of swap termination costs		6,878			—			—			—			6,878
Net loss (gain) on sale or disposal of properties		—			160			(17	)		—			143
Impairment of assets		—			3,193			27			—			3,220
Equity compensation costs		4,979			—			—			—			4,979
Deferred income taxes and other		1,532			—			1			—			1,533
Changes in operating assets and liabilities, net of acquisitions and dispositions:
Accounts receivable		(3,386	)		(14,329	)		(6,052	)		—			(23,767	)
Other current assets		(112	)		(7,844	)		(2,075	)		—			(10,031	)
Accounts payable		(4,588	)		9,096			7,406			—			11,914
Accrued expenses		25,388			(5,885	)		188			—			19,691
Other assets and liabilities		20			(456	)		(45	)		—			(481	)
Net cash provided by operating activities		25,362			20,133			7,233			—			52,728
Cash flows from investing activities:
Purchase of property, plant and equipment		(249	)		(34,405	)		(1,531	)		—			(36,185	)
NECR government grant reimbursements		—			6,954			—			—			6,954
Proceeds from sale of assets		—			2,552			236			—			2,788
Acquisitions, net of cash acquired		—			(12,706	)		—			—			(12,706	)
Deferred costs and other		(45	)		—			—			—			(45	)
Net cash used in investing activities		(294	)		(37,605	)		(1,295	)		—			(39,194	)
Cash flows from financing activities:
Principal payments on long-term debt		—			(263	)		—			—			(263	)
Receipts / (disbursements) on intercompany debt		25,023			(8,011	)		(17,012	)		—			—
Repurchase of common stock		(50,091	)		—			—			—			(50,091	)
Deferred financing costs paid		—			(119	)		—			—			(119	)
Net cash used in financing activities		(25,068	)		(8,393	)		(17,012	)		—			(50,473	)
Effect of exchange rates on cash		—			—			453			—			453
Net decrease in cash		—			(25,865	)		(10,621	)		—			(36,486	)
Cash, beginning of period		—			137,335			15,633			—			152,968
Cash, end of period	$	—		$	111,470		$	5,012		$	—		$	116,482

Consolidating Balance Sheet
December 31, 2010

						Non
	Company			Guarantor		Guarantor
	(Parent)			Subsidiaries		Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—		$	137,335	$	15,633	$	—		$	152,968
Accounts and notes receivable, net of allowance		116			65,920		8,632		—			74,668
Current deferred tax assets		12,769			—		—		—			12,769
Other current assets		205			13,976		1,019		—			15,200
Total current assets		13,090			217,231		25,284		—			255,605
Property, plant and equipment, net		485			898,155		82,982		—			981,622
Intangible assets		—			103,935		36,611		—			140,546
Goodwill		—			204,679		7,816		—			212,495
Other assets		12,401			984		—		—			13,385
Investment in and advances to affiliates		1,265,556			1,119,507		33,534		(2,418,597	)		—
Total assets	$	1,291,532		$	2,544,491	$	186,227	$	(2,418,597	)	$	1,603,653
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Current maturities of long-term debt	$	—		$	403	$	—	$	—		$	403
Accounts payable		7,311			54,150		4,797		—			66,258
Accrued expenses		3,939			29,362		3,612		—			36,913
Total current liabilities		11,250			83,915		8,409		—			103,574
Long-term debt, less current maturities		—			2,147		—		—			2,147
Senior secured notes		571,161			—		—		—			571,161
Deferred income taxes		(1,087	)		182,747		21,325		—			202,985
Other liabilities		5,459			13,113		465		—			19,037
Stockholders’ equity:
Common stock		549			1,493		—		(1,493	)		549
Additional paid-in capital		636,757			2,218,338		130,816		(2,349,154	)		636,757
Retained earnings		65,503			42,633		9,653		(52,286	)		65,503
Accumulated other comprehensive income		1,940			105		15,559		(15,664	)		1,940
Total stockholders’ equity		704,749			2,262,569		156,028		(2,418,597	)		704,749
Total liabilities and stockholders’ equity	$	1,291,532		$	2,544,491	$	186,227	$	(2,418,597	)	$	1,603,653

Consolidating Statement of Operations
For the three months ended June 30, 2010

							Non
	Company			Guarantor			Guarantor
	(Parent)			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Operating revenue	$	51		$	103,647		$	15,759		$	—		$	119,457
Operating expenses:
Labor and benefits		5,514			28,393			3,978			—			37,885
Equipment rents		28			8,144			465			—			8,637
Purchased services		1,907			7,041			725			—			9,673
Diesel fuel		—			8,859			1,659			—			10,518
Casualties and insurance		264			3,558			984			—			4,806
Materials		32			3,435			407			—			3,874
Joint facilities		—			1,938			7			—			1,945
Other expenses		816			6,714			749			—			8,279
Track maintenance expense reimbursement		—			—			—			—			—
Net loss (gain) on sale of assets		1			(34	)		58			—			25
Depreciation and amortization		2			9,975			778			—			10,755
Total operating expenses		8,564			78,023			9,810			—			96,397
Operating (loss) income		(8,513	)		25,624			5,949			—			23,060
Interest expense		(5,759	)		(15,276	)		(1,118	)		—			(22,153	)
Equity in earnings of subsidiaries		9,448			—			—			(9,448	)		—
Other loss		(2,003	)		(4,813	)		(1,084	)		—			(7,900	)
(Loss) income from continuing operations before income taxes		(6,827	)		5,535			3,747			(9,448	)		(6,993	)
Benefit from income taxes		(2,606	)		(28	)		(138	)		—			(2,772	)
Net (loss) income	$	(4,221	)	$	5,563		$	3,885		$	(9,448	)	$	(4,221	)

Consolidating Statement of Operations
For the six months ended June 30, 2010

							Non
	Company			Guarantor			Guarantor
	(Parent)			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Operating revenue	$	101		$	203,212		$	31,085		$	—		$	234,398
Operating expenses:
Labor and benefits		11,734			55,971			7,931			—			75,636
Equipment rents		62			16,279			795			—			17,136
Purchased services		3,675			13,287			1,266			—			18,228
Diesel fuel		—			18,152			3,610			—			21,762
Casualties and insurance		528			6,668			1,243			—			8,439
Materials		73			6,941			785			—			7,799
Joint facilities		—			4,071			20			—			4,091
Other expenses		1,646			14,143			1,588			—			17,377
Track maintenance expense reimbursement		—			—			—			—			—
Net loss (gain) on sale of assets		1			(65	)		55			—			(9	)
Depreciation and amortization		53			20,102			1,523			—			21,678
Total operating expenses		17,772			155,549			18,816			—			192,137
Operating (loss) income		(17,671	)		47,663			12,269			—			42,261
Interest expense		(12,030	)		(30,581	)		(2,246	)		—			(44,857	)
Equity in earnings of subsidiaries		15,104			—			—			(15,104	)		—
Other income (loss)		4,338			(9,612	)		(2,167	)		—			(7,441	)
(Loss) income from continuing operations before income taxes		(10,259	)		7,470			7,856			(15,104	)		(10,037	)
(Benefit from) provision for income taxes		(3,524	)		360			(138	)		—			(3,302	)
Net (loss) income	$	(6,735	)	$	7,110		$	7,994		$	(15,104	)	$	(6,735	)

Consolidating Statement of Cash Flows
For the six months ended June 30, 2010

							Non
	Company			Guarantor			Guarantor
	(Parent)			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(6,735	)	$	7,110		$	7,994		$	(15,104	)	$	(6,735	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization, including amortization costs classified in interest expense		2,330			20,285			1,524			—			24,139
Equity in earnings of subsidiaries		(15,104	)		—			—			15,104			—
Amortization of swap termination costs		11,708			—			—			—			11,708
Net (gain) loss on sale or disposal of properties		—			(67	)		58			—			(9	)
Loss on extinguishment of debt		8,357			—			—			—			8,357
Equity compensation costs		3,490			—			—			—			3,490
Deferred income taxes and other		(6,335	)		360			(19	)		—			(5,994	)
Changes in operating assets and liabilities, net of acquisitions and dispositions:
Accounts receivable		(62	)		(11,087	)		(1,250	)		—			(12,399	)
Other current assets		(245	)		6,380			1,286			—			7,421
Accounts payable		1,600			8,152			(3,075	)		—			6,677
Accrued expenses		27,137			(4,470	)		(783	)		—			21,884
Other assets and liabilities		13			21			157			—			191
Net cash provided by operating activities		26,154			26,684			5,892			—			58,730
Cash flows from investing activities:
Purchase of property, plant and equipment		(74	)		(28,008	)		(2,500	)		—			(30,582	)
Proceeds from sale of assets		—			546			106			—			652
Net cash used in investing activities		(74	)		(27,462	)		(2,394	)		—			(29,930	)
Cash flows from financing activities:
Principal payments on long-term debt		—			(380	)		—			—			(380	)
Repurchase of senior secured notes		(76,220	)		—			—			—			(76,220	)
(Disbursements)/receipts on intercompany debt		(71,700	)		77,107			(5,407	)		—			—
Costs associated with sale of common stock		(106	)		—			—			—			(106	)
Deferred financing costs paid		(95	)		(129	)		—			—			(224	)
Net cash (used in) provided by financing activities		(148,121	)		76,598			(5,407	)		—			(76,930	)
Effect of exchange rates on cash		—			—			(234	)		—			(234	)
Net (decrease) increase in cash		(122,041	)		75,820			(2,143	)		—			(48,364	)
Cash, beginning of period		122,041			54,828			13,349			—			190,218
Cash, end of period	$	—		$	130,648		$	11,206		$	—		$	141,854