SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
JULY 30, 2003
KANSAS CITY SOUTHERN
(Exact name of company as specified in its charter)
DELAWARE 1-4717 44-0663509
---------------------------- ------------------ ----------------------
(State or other jurisdiction (Commission file (IRS Employer
of incorporation) number) Identification Number)
427 WEST 12TH STREET, KANSAS CITY, MISSOURI 64105
-------------------------------------------------
(Address of principal executive offices) (Zip Code)
COMPANY'S TELEPHONE NUMBER, INCLUDING AREA CODE:
(816) 983 - 1303
NOT APPLICABLE
(Former name or former address if changed since last report)
ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE
Kansas City Southern ("KCS" or "Company") is filing under Item 5 of this Current
Report on Form 8-K the information included as Exhibit 99.1 of this report.
Exhibit 99.1 is the Company's press release, dated July 30, 2003, announcing
KCS's second quarter 2003 earnings and operating results.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
EXHIBIT NO. DOCUMENT
(99) Additional Exhibits
99.1 Press Release issued by Kansas City Southern dated
July 30, 2003 entitled, "Kansas City Southern
Reports Second Quarter 2003 Earnings," is attached
hereto as Exhibit 99.1
99.2 The following schedules are attached hereto as
Exhibit 99.2 - Kansas City Southern Operating
Statements, Kansas City Southern Railway Carloadings
by Commodity, Kansas City Southern Consolidated
Balance Sheets
ITEM 9. REGULATION FD DISCLOSURE (RESULTS OF OPERATIONS AND
FINANCIAL CONDITION UNDER ITEM 12)
Kansas City Southern ("KCS" or "Company") is filing under Item 9 and Item 12 of
this Current Report on Form 8-K the information included as Exhibit 99.2 of this
report in accordance with interim procedures promulgated by the Securities and
Exchange Commission in Release No. 33-8216. Included in Exhibit 99.2 are
schedules regarding certain financial information discussed at the Company's
second quarter 2003 analyst presentation and conference call.
The information included in this Current Report on Form 8-K, including Exhibit
99.2, is required by Item 12 of Form 8-K furnished pursuant to Item 9 and Item
12 and shall not be deemed to be "filed" for the purposes of Section 18 of the
Securities Exchange Act of 1934 or otherwise subject to the liabilities of that
Section.
SIGNATURE
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
hereunto duly authorized.
Kansas City
Southern
Date: August 1, 2003 By: /S/ LOUIS G. VAN HORN
----------------------------
Louis G. Van Horn
Vice President and Comptroller
(Principal Accounting Officer)
EXHIBIT 99.1
KANSAS CITY SOUTHERN PRESS RELEASE
Cathedral Square - 427 West 12TH Street - P.O. Box 219335
Kansas City, Missouri 64121-9335 NYSE SYMBOL: KSU
Date: July 30, 2003
Media Contact: William H. Galligan Phone: 816/983-1551
william.h.galligan@kcsr.com
KANSAS CITY SOUTHERN REPORTS SECOND QUARTER 2003 EARNINGS
EARNINGS ANALYSIS & COMMENTARY
Kansas City Southern (KCS or Company) (NYSE: KSU) reported a net loss of $0.5
million for the second quarter of 2003 compared to net income of $14.5 million
($0.23 per diluted share) for the second quarter of 2002. Results for the second
quarter of 2003 were negatively affected by lower earnings from Grupo
Transportacion Ferroviaria Mexicana, S.A. de C.V. (Grupo TFM), which reported to
KCS, under the equity method, a loss of $2.3 million for the quarter. Grupo
TFM's net income was impacted by deferred tax expense (as calculated under U.S.
GAAP) primarily tied to the strengthened Mexican peso versus the U.S. dollar and
the impact of lower future Mexican corporate tax rates on Grupo TFM's deferred
tax assets. Grupo TFM reported a deferred tax provision of $8.9 million for
second quarter 2003 compared with a $33.6 million deferred tax benefit for the
comparable 2002 period. KCS consolidated second quarter revenues were $146.3
million, a 5% increase over second quarter 2002. KCS earnings per share for the
quarter ended June 30, 2003 were impacted by the accumulated dividends for the
4.25% Redeemable Cumulative Convertible Perpetual Preferred Stock issued on
April 29, 2003. These preferred dividends reduced earnings per share by two
cents.
For the six months ended June 30, 2003, consolidated net income was $13.1
million ($0.19 per diluted share) compared with $26.2 million ($0.42 per diluted
share) for the six months ended June 30, 2002. This $13.1 million decrease was
the result of a $12.1 million decline in equity in net earnings of
unconsolidated affiliates, a $10.3 million increase in costs and expenses, and a
$6.0 million decline in other income. Partially offsetting these charges was a
one-time $8.9 million benefit (net of tax) booked in first quarter 2003 relating
to the cumulative effect of a required change in accounting for removal costs of
certain track structure assets. The first six months of 2002 included a $4.4
million gain from the sale of Mexrail, Inc. (Mexrail) to TFM, S.A. de C.V. (TFM)
and debt retirement costs of $4.3 million.
Diluted earnings per share information (1):
SECOND QUARTER YTD THROUGH 6/30
-------------- ----------------
2003 2002 2003 2002
------ ------ ------ ------
U.S. Operations 0.07 0.09 0.10 0.27
Grupo TFM and PCRC (including allocated
interest) (0.10) 0.14 (0.05) 0.15
------ ------ ------ ------
INCOME BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE (0.03 ) 0.23 0.05 0.42
Cumulative effect of accounting change,
net of income taxes - - 0.14 -
------ ------ ------ ------
NET INCOME (0.03 ) 0.23 0.19 0.42
SECOND QUARTER
Consolidated operating income was $14.2 million for the second quarter of 2003
compared to $14.5 million for the second quarter of 2002. Second quarter 2003
consolidated revenues increased $7.1 million compared to second quarter 2002.
Consolidated costs and expenses increased by $7.4 million quarter-to-quarter due
principally to increases in fuel, casualties and insurance, purchased services,
and depreciation. Other income declined $2.9 million quarter-to-quarter
primarily resulting from lower gains recorded on the sales of property in second
quarter.
Second quarter 2003 revenues from the Company's principal operating subsidiary,
The Kansas City Southern Railway Company (KCSR) were $144.6 million, an increase
of $7.1 million over second quarter 2002. Revenues improved throughout most
commodity groups at KCSR, including agriculture & minerals, paper & forest
products, intermodal and coal. Agriculture & mineral revenues increased
approximately $3.4 million due to growth in food products, ores and minerals,
and domestic grain. Paper & forest product revenues increased approximately $4.3
million propelled by significant increases in pulp and paper, and lumber.
Intermodal revenues increased approximately $0.4 million based on continued
growth in intermodal traffic with Norfolk Southern and CSX, and coal revenues
were approximately $0.5 million higher quarter to quarter on increased volumes.
The only commodity group to experience a decline in the second quarter of 2003
was chemical & petroleum products with revenues approximately $3.2 million off
those of second quarter 2002. Plastics and petroleum were responsible for
virtually the entire decrease quarter-to-quarter. Persistently high natural gas
prices contributed to the shortfall in those two commodity areas.
----------------------------------------
(1) The components of the diluted earnings per share information include
measurements that are not presented under accounting principles generally
accepted in the United States of America ("U.S. GAAP"). This presentation
includes an internal allocation of interest expense from U.S. operations to
Grupo TFM. Management believes this interest expense allocation results in a
more accurate reflection of the diluted earnings per share relating to the
contribution of Grupo TFM to the consolidated net income of KCS. The interest
expense allocation is based upon the initial amount of capital invested by KCS
in Grupo TFM and is calculated utilizing a blended interest rate applicable to
the Company's indebtedness composition. This measurement is presented to provide
the reader of these financial statements with a better understanding of the
impact of financing costs on the earnings per share related to KCS's investment
in Grupo TFM. The nearest GAAP measurement is net income, which is included in
the consolidated statements of income included in this press release.
Second quarter 2003 KCSR expenses increased $6.4 million compared with second
quarter 2002 due primarily to higher expenses for depreciation ($2.2 million),
fuel ($2.0 million), purchased services ($1.5 million), and casualties and
insurance ($0.6 million). KCSR fuel costs rose quarter-to-quarter due to a 24%
increase in the average price per gallon. KCSR's fuel conservation program
achieved a 1% decrease in fuel consumption quarter-to-quarter despite a 4%
increase in carloadings. Depreciation expense increased principally from the
company- wide installation of the Management Control System (MCS) computer
operating system in July 2002. KCSR's second quarter 2003 operating ratio was
86.9% compared with 86.7% for second quarter 2002, and was improved from the
93.3% operating ratio in first quarter 2003.
Equity in earnings from Grupo TFM decreased approximately $15.3 million
quarter-to-quarter, primarily due to the $42.5 million increase in the U.S. GAAP
deferred tax expense reported at Grupo TFM resulting from the impact to the tax
provisions of a strengthened Mexican peso versus the U.S. dollar, and lower
future Mexican corporate tax rates. Grupo TFM's second quarter 2003 revenues
decreased $9.7 million (5%) compared with second quarter of last year in part
the result of a shift in the U.S. dollar/Mexican peso exchange rate (estimated
impact of $4.2 million of $9.7 million decrease). Grupo TFM's revenues increased
5% compared to the first quarter of 2003. As calculated under U.S. GAAP, Grupo
TFM's operating expenses were approximately $11.2 million (12%) higher
quarter-to-quarter primarily due to a $11.0 million increase in a deferred
profit-sharing charge, and a $4 million, or 33%, increase in fuel expense.
Also affecting equity in earnings was the impact of the Company's increased
ownership of Grupo TFM to 46.6% from 36.9%, which the Company obtained
indirectly in July 2002 through the purchase by TFM of the Mexican government's
24.6% ownership of Grupo TFM. Interest expense at Grupo TFM increased
approximately $7.2 million in second quarter 2003 compared with second quarter
2002 primarily due to increased financing costs related to the acquisition of
the Mexican government's ownership share. The Company reports its equity in
Grupo TFM under U.S. GAAP while Grupo TFM reports under International Accounting
Standards (IAS).
Year-to-Date
KCS's consolidated revenues of $286.5 million for the first six months of 2003
improved by $3.4 million over the prior year's six-month period. Consolidated
operating income was $21.0 million, compared with $27.9 million for the 2002
period. Year-to-date 2003 revenues for KCSR were $283.4 million, an increase of
$4.2 million from the previous year's six-month period. KCSR's year-to-date 2003
costs and expenses were $12.1 million higher compared to the prior year
resulting primarily from increases in fuel costs ($5.3 million), depreciation
($4.0 million), purchased services ($3.9 million), and compensation and fringes
($2.4 million). Partially offsetting these increases was a $4.2 million
reduction in car hire and equipment lease costs for the first six months of 2003
compared to prior year six-month period.
The Company's equity in earnings from Grupo TFM for the six-month period ending
June 30, 2003, decreased by approximately $13.2 million, principally due to a
reduction of $24.8 million of deferred tax benefits (calculated under U.S. GAAP)
recorded by Grupo TFM. Also affecting the six-month period were a $12 million
decrease in revenues, and a $15.0 million increase in operating expenses. Grupo
TFM revenues were affected by the approximately $21.9 million impact of the
shift in peso/dollar exchange rates, and a 23% decrease in automobile volume
related to lower North American automobile sales. Also impacting equity in
earnings from Grupo TFM were the Company's increased ownership percentage of
Grupo TFM, and higher interest expense at Grupo TFM due to the July 2002
acquisition of the Mexican government's 24.6% ownership share.
KCS's consolidated year-to-date interest expense increased $1.4 million (6%)
from the same prior year period as a result of higher interest rates caused by a
shift to fixed-rate debt. Other income for the first six months of 2003 was $2.8
million, $6 million less than comparable 2002, due to a decline on sales of
non-operating property. In the first half of 2002, the Company recorded a charge
of $4.3 million related to debt retirement costs.
Comments from the Chairman
Michael R. Haverty, KCS's Chairman, President and Chief Executive Officer
stated, "We are encouraged that during the second quarter, a number of KCSR's
operating and business metrics showed significant improvement. Train operating
performance showed steady improvement and we are making headway with our asset
utilization. Revenues in almost all of our business groups improved and we are
cautiously optimistic that the national economy is strengthening, which we
believe will allow us to build on this positive trend. Two items of concern are
stubbornly high fuel prices and the current high price of natural gas that is
having a negative impact on the plastics and petroleum industries, key
components of our chemical & petroleum business.
"While it is clear that Grupo TFM revenues have been impacted by the North
American economy, the increase in revenues in the second quarter over the first
quarter is an indicator that business is picking up there as well. The reduction
in equity earnings from Grupo TFM in the second quarter of 2003 is almost
totally the product of U.S. GAAP tax calculations and is not tied to any
underlying weakness in the franchise. Grupo TFM continues to strengthen its
infrastructure and improve its operations and customer service. We believe it is
still the railroad with the greatest growth potential in North America.
"The NAFTA Rail transaction continues to move ahead. During the second quarter,
Mexico's Competition Commission ruled that the change in majority ownership
would not adversely affect competition. In August, we expect a ruling from the
Foreign Investment Commission, the other Mexican regulatory entity that must
endorse the transaction. We were also pleased with the decision of the Court of
the First Circuit in Mexico reaffirming TFM's right to the Value Added Tax (VAT)
refund and remanding the case back to the Fiscal Court. We will continue to
monitor closely the regulatory, legal and financial developments in the United
States and Mexico that have bearing on the proposed NAFTA Rail transaction.
"With MCS now fully integrated into KCSR rail operations and having a
significantly positive impact on service and operating efficiencies throughout
our system, and with an economy beginning to pick up some steam, KCS looks
forward to attaining financial and operational improvements during the second
half of 2003."
KCS is comprised of, among others, The Kansas City Southern Railway Company
("KCSR") and equity investments in Grupo TFM, Southern Capital Corporation
("Southern Capital") and Panama Canal Railway Company ("PCRC").
This press release includes statements concerning potential future events
involving the Company, which could materially differ from the events that
actually occur. The differences could be caused by a number of factors including
those factors identified in a Current Report on Form 8-K dated December 11, 2001
filed by the Company with the Securities and Exchange Commission ("SEC")
(Commission file no. 1-4717). The Company will not update any forward-looking
statements in this press release to reflect future events or developments.
(Financial Information Attached)
KANSAS CITY SOUTHERN
CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
(Unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
------------------------------- -----------------------------
2003 2002 2003 2002
------------ ------------- ------------- -----------
Revenues $ 146.3 $ 139.2 $ 286.5 $ 283.1
Costs and expenses 116.1 110.1 233.6 225.7
Depreciation and amortization 16.0 14.6 31.9 29.5
------------ ------------- ------------- -----------
Operating income 14.2 14.5 21.0 27.9
Equity in net earnings (losses) of unconsolidated affiliates:
Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. (2.3) 13.0 4.6 17.8
Other (0.2) (1.3) (0.1) (1.2)
Gain on sale of Mexrail, Inc. - - - 4.4
Interest Expense (11.7) (10.5) (23.2) (21.8)
Debt retirement costs - (4.3) - (4.3)
Other income 1.5 4.4 2.8 8.8
------------ ------------- ------------- -----------
Income before income taxes and
cumulative effect of accounting change 1.5 15.8 5.1 31.6
Income tax provision 2.0 1.3 0.9 5.4
------------ ------------- ------------- -----------
Income (loss) before cumulative effect of accounting change (0.5) 14.5 4.2 26.2
Cumulative effect of accounting change, net of income taxes - - 8.9 -
------------ ------------- ------------- -----------
Net income (loss) $ (0.5) $ 14.5 $ 13.1 $ 26.2
Preferred stock dividends 1.3 0.1 1.4 0.1
------------ ------------- ------------- -----------
Net income (loss) available to Common shareholders $ (1.8) $ 14.4 $ 11.7 $ 26.1
============ ============= ============= ===========
Per Share Data:
Basic Weighted Average Common shares outstanding (in thousands) 61,649 60,095 61,525 59,918
Basic Earnings (Loss) per Common share
Income (loss) before cumulative effect of accounting change $ (0.03) $ 0.24 $ 0.05 $ 0.44
Cumulative effect of accounting change - - 0.14 -
------------ ------------- ------------- -----------
Net income (loss) $ (0.03) $ 0.24 $ 0.19 $ 0.44
Diluted Weighted Average Common shares outstanding (in thousands) 61,649 62,327 62,922 62,066
Diluted Earnings (Loss) per Common share
Income (loss) before cumulative effect of accounting change $ (0.03) $ 0.23 $ 0.05 $ 0.42
Cumulative effect of accounting change - - 0.14 -
------------ ------------- ------------- -----------
Net income (loss) $ (0.03) $ 0.23 $ 0.19 $ 0.42
GRUPO TRANSPORTACION FERROVIARIA MEXICANA
CONSOLIDATED INCOME STATEMENT
U.S. GAAP BASIS
($ in Thousands)
Second Qtr Ended June 30, Year to Date June 30,
---------------------------------------- ----------------------------------
2003 2002 2003 2002
---------------------------------------- ----------------------------------
OPERATING REVENUE 176,594 186,315 345,118 357,098
OPERATING EXPENSES 143,786 131,637 280,534 266,650
---------------------------------------- ----------------------------------
OPERATING PROFIT 32,808 54,678 64,584 90,448
INTEREST EXPENSE (28,136) (20,947) (55,618) (40,244)
EXCHANGE GAIN/(LOSS) 2,113 (12,127) (2,951) (11,312)
OTHER INCOME (EXPENSE) (3,588) (151) (7,138) (4,403)
---------------------------------------- ----------------------------------
Pre Tax Income 3,197 21,453 (1,123) 34,489
INCOME TAX PROVISION (BENEFIT) 8,871 (33,638) (14,132) (38,890)
---------------------------------------- ----------------------------------
INCOME BEFORE MINORITY INTEREST (5,674) 55,091 13,009 73,379
MINORITY INTEREST 981 (10,606) (2,704) (14,428)
---------------------------------------- ----------------------------------
NET INCOME $ (4,693) $ 44,485 $ 10,305 $ 58,951
======================================== ==================================
U.S. GAAP OPERATING RATIO 81.42% 70.65% 81.29% 74.67%
---------------------------------------- ----------------------------------
KCS EQUITY IN NET EARNINGS OF GRUPO TFM $ (2,272) $ 12,956 $ 4,624 $ 17,762
LESS: ALLOCATION OF INTEREST (3,776) (3,550) (7,545) (7,055)
ADJUSTED CONTRIBUTION TO NET INCOME OF KCS (2) $ (6,048) $ 9,406 $ (2,921) $ 10,707
(2) This schedule includes a measurement that is not presented under U.S. GAAP.
The adjusted contribution of Grupo TFM to the net income of KCS includes an
internal allocation of interest expense applied against the equity in net
earnings of the Company's investment in Grupo TFM. Management believes this
interest expense allocation results in a more accurate reflection of the
contribution of Grupo TFM to the consolidated net income of KCS. The interest
expense allocation is based upon the initial amount of capital invested by KCS
in Grupo TFM and is calculated utilizing a blended interest Rate applicable to
the Company's indebtedness composition. This measurement is presented to provide
the reader of these financial statements with a better understanding of the
impact of financing costs on the contribution of Grupo TFM to the consolidated
net income of KCS. The nearest GAAP measurement is included in the consolidated
statements of income included in this press release.
EXHIBIT 99.2
Kansas City Southern
Operating Statements
Dollars in Millions
Second Quarter Second Quarter Year to Date Year to Date
2003 2002 2003 2002
-------------------- -------------------- -------------------- --------------------
Revenues
Freight Revenue $ 96.2 $ 90.8 $ 185.1 $ 178.6
Intermodal and Automotive Revenue 14.9 15.8 28.4 30.8
Unit Coal Revenue 21.2 20.9 45.5 49.2
Haulage Revenue 2.7 2.6 5.2 5.0
Other Revenue 11.3 9.1 22.3 19.5
-------------------- -------------------- -------------------- --------------------
Total Revenues 146.3 139.2 286.5 283.1
-------------------- -------------------- -------------------- --------------------
Operating Expenses
Compensation 33.0 32.2 67.6 66.5
Fringe Benefits 14.5 14.3 30.4 29.4
Fuel 11.3 9.3 24.1 18.8
Material and Supplies 7.2 7.8 14.6 16.2
Car Hire 3.5 4.1 5.7 9.3
Purchased Services 15.2 13.9 30.3 27.9
Casualties & Insurance 8.4 7.2 16.5 15.1
Other 5.0 3.5 8.6 7.2
-------------------- -------------------- -------------------- --------------------
Net Operating Expenses 98.1 92.3 197.8 190.4
-------------------- -------------------- -------------------- --------------------
Fixed Expenses
Leases, Net 14.2 13.8 28.5 27.3
Depreciation 16.0 14.6 31.9 29.5
Taxes (Other Than Income) 3.8 4.0 7.3 8.0
-------------------- -------------------- -------------------- --------------------
Total Fixed Expenses 34.0 32.4 67.7 64.8
-------------------- -------------------- -------------------- --------------------
Total Expenses 132.1 124.7 265.5 255.2
-------------------- -------------------- -------------------- --------------------
Operating Income $ 14.2 $ 14.5 $ 21.0 $ 27.9
==================== ==================== ==================== ====================
Note:
Certain prior year amounts have been reclassified to conform to the current year presentation.
Kansas City Southern Railway
Carloadings By Commodity - Year to Date June 30, 2003
Dollars in Thousands
Carloadings Revenue
Year to Date % Year to Date %
------------------------------ ------------------------------
2003 2002 Change 2003 2002 Change
-------------- -------------- --------- -------------- -------------- ---------
Coal
91,366 103,095 (11.4)% Unit Coal $ 45,501 $ 49,206 (7.5)%
1,528 2,012 (24.1)% Other Coal 813 1,082 (24.9)%
-------------- -------------- -------------- --------------
92,894 105,107 (11.6)% Total 46,314 50,288 (7.9)%
-------------- -------------- -------------- --------------
Chemical & Petroleum Products
2,833 3,213 (11.8)% Agri Chemicals 1,883 2,337 (19.4)%
7,479 6,828 9.5% Gases 7,359 6,707 9.7%
10,758 11,392 (5.6)% Organic 11,364 11,530 (1.4)%
11,186 10,236 9.3% Inorganic 11,660 10,865 7.3%
27,739 27,153 2.2% Petroleum 18,629 19,654 (5.2)%
10,309 14,879 (30.7)% Plastics 10,899 14,579 (25.2)%
-------------- -------------- -------------- --------------
70,304 73,701 (4.6)% Total 61,794 65,672 (5.9)%
-------------- -------------- -------------- --------------
Agriculture and Minerals
23,228 24,265 (4.3)% Domestic Grain 18,878 18,644 1.3%
8,227 7,446 10.5% Export Grain 6,610 6,247 5.8%
16,576 13,855 19.6% Food Products 13,381 11,868 12.7%
12,690 11,047 14.9% Ores and Minerals 7,232 6,181 17.0%
7,988 7,801 2.4% Stone, Clay & Glass 6,256 6,034 3.7%
-------------- -------------- -------------- --------------
68,709 64,414 6.7% Total 52,357 48,974 6.9%
-------------- -------------- -------------- --------------
Paper & Forest Products
46,400 42,629 8.8% Pulp/Paper 36,311 31,966 13.6%
3,387 2,926 15.8% Scrap Paper 2,099 1,730 21.3%
15,248 17,104 (10.9)% Pulpwood/Logchips 6,999 6,961 0.5%
14,911 13,766 8.3% Lumber/Plywood 14,483 12,606 14.9%
9,038 8,944 1.1% Metal/Scrap 7,603 7,542 0.8%
3,266 3,499 (6.7)% Military/Other Carloads 4,791 5,275 (9.2)%
-------------- -------------- -------------- --------------
92,250 88,868 3.8% Total 72,286 66,080 9.4%
-------------- -------------- -------------- --------------
Intermodal & Automotive
3,145 9,481 (66.8)% Automotive 2,613 6,328 (58.7)%
146,508 134,213 9.2% Intermodal 25,815 24,510 5.3%
-------------- -------------- -------------- --------------
149,653 143,694 4.1% Total 28,428 30,838 (7.8)%
-------------- -------------- -------------- --------------
473,810 475,784 (0.4)% TOTAL FOR BUSINESS UNITS 261,179 261,852 (0.3)%
17,866 12,705 40.6% Haulage 5,198 4,962 4.8%
(1,735) (3,523) 50.8% Adjustments (1,025) (2,540) 59.6%
-------------- -------------- -------------- --------------
489,941 484,966 1.0% TOTAL $ 265,352 $ 264,274 0.4%
============== ============== ============== ==============
Note:
Certain prior year amounts have been reclassified to conform to the current year presentation.
Kansas City Southern Railway
Carloadings By Commodity - Second Quarter 2003
Dollars in Thousands
Carloadings Revenue
Second Quarter % Second Quarter %
------------------------------ ----------------------------
2003 2002 Change 2003 2002 Change
-------------- ------------ ------- ------------ ------------- -------
Coal
44,886 45,503 (1.4)% Unit Coal $ 21,610 $ 20,925 3.3%
870 1,131 (23.1)% Other Coal 471 623 (24.4)%
-------------- ------------ ------------ -------------
45,756 46,634 (1.9)% Total 22,081 21,548 2.5%
-------------- ------------ ------------ -------------
Chemical & Petroleum Products
1,419 1,392 1.9% Agri Chemicals 930 933 (0.3)%
3,815 3,588 6.3% Gases 3,796 3,588 5.8%
5,451 5,978 (8.8)% Organic 5,934 6,106 (2.8)%
5,552 5,372 3.4% Inorganic 5,837 5,707 2.3%
13,299 14,066 (5.5)% Petroleum 9,164 10,004 (8.4)%
4,757 7,425 (35.9)% Plastics 4,980 7,463 (33.3)%
-------------- ------------ ------------ -------------
34,293 37,821 (9.3)% Total 30,641 33,801 (9.3)%
-------------- ------------ ------------ -------------
Agriculture and Minerals
11,937 12,141 (1.7)% Domestic Grain 10,205 9,508 7.3%
2,949 2,531 16.5% Export Grain 2,220 2,094 6.0%
8,961 6,572 36.4% Food Products 7,269 5,646 28.7%
7,012 5,991 17.0% Ores and Minerals 4,060 3,353 21.1%
4,405 4,139 6.4% Stone, Clay & Glass 3,487 3,222 8.2%
-------------- ------------ ------------ -------------
35,264 31,374 12.4% Total 27,241 23,823 14.3%
-------------- ------------ ------------ -------------
Paper & Forest Products
23,715 22,060 7.5% Pulp/Paper 19,105 16,813 13.6%
1,693 1,383 22.4% Scrap Paper 1,074 833 28.9%
8,089 8,318 (2.8)% Pulpwood/Logs/Chips 3,645 3,262 11.7%
7,920 6,968 13.7% Lumber/Plywood 7,764 6,491 19.6%
4,390 4,695 (6.5)% Metal/Scrap 4,034 4,076 (1.0)%
1,645 1,611 2.1% Military/Other carloads 2,781 2,669 4.2%
-------------- ------------ ------------ -------------
47,452 45,035 5.4% Total 38,403 34,144 12.5%
-------------- ------------ ------------ -------------
Intermodal & Automotive
1,750 3,710 (52.8)% Automotive 1,457 2,823 (48.4)%
76,119 70,502 8.0% Intermodal 13,458 13,051 3.1%
-------------- ------------ ------------ -------------
77,869 74,212 4.9% Total 14,915 15,874 (6.0)%
-------------- ------------ ------------ -------------
240,634 235,076 2.4% TOTAL FOR BUSINESS UNITS 133,281 129,190 3.2%
10,191 6,924 47.2% Haulage 2,711 2,520 7.6%
(918) (1,461) 37.2% Adjustments - (1,275) 100.0%
-------------- ------------ ------------ -------------
249,907 240,539 3.9% TOTAL $ 135,992 $ 130,435 4.3%
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Note:
Certain prior year amounts have been reclassified to conform to the current year presentation.
Kansas City Southern
June 30, 2003 December 31, 2002
(Unaudited)
Assets
Cash $ 191.9 $ 19.0
Accounts receivable 116.8 118.5
Inventories 35.6 34.2
Other current assets 31.9 44.5
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Total current assets 376.2 216.2
Investments 460.8 423.1
Properties, net of depreciation 1,344.3 1,337.4
Other assets 35.2 32.1
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Total assets $ 2,216.5 $ 2,008.8
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Liabilities and Stockholders' Equity
Current portion of long-term debt $ 10.0 $ 10.0
Accounts payable 35.7 47.7
Accrued liabilities 141.9 128.6
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Total current liabilities 187.6 186.3
Long-term debt 570.1 572.6
Deferred income taxes 396.6 392.8
Other 97.3 104.2
Stockholders' equity 964.9 752.9
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Total liabilities and stockholders'
equity $ 2,216.5 $ 2,008.8
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