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):
JANUARY 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 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
EXHIBIT NO. DOCUMENT
(99) Additional Exhibits
99.1 Press Release issued by Kansas City
Southern dated January 30, 2003
entitled, "Kansas City Southern Reports
Higher Fourth Quarter and Year to Date
2002 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
Kansas City Southern ("KCS" or "Company") is furnishing under Item 9 of this
Current Report on Form 8-K the information included as Exhibit 99.1 and Exhibit
99.2 of this report. Exhibit 99.1 is the Company's press release, dated January
30, 2003, announcing KCS's fourth quarter and year to date 2002 earnings and
operating results. Included in Exhibit 99.2 are schedules regarding certain
financial information discussed at the Company's fourth quarter 2002 conference
call.
The information included in this Current Report on Form 8-K, including Exhibit
99.1 and Exhibit 99.2, is furnished pursuant to Item 9 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: February 3, 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
427 WEST 12TH STREET, KANSAS CITY, MISSOURI 64105 NYSE SYMBOL: KSU
Date: January 30, 2003
Media Contact: William H. Galligan 816/983-1551
william.h.galligan@kcsr.com
KANSAS CITY SOUTHERN REPORTS HIGHER FOURTH QUARTER AND
YEAR TO DATE 2002 EARNINGS
EARNINGS ANALYSIS & COMMENTARY
Kansas City Southern ("KCS" or the "Company") (NYSE:KSU) reported net income of
$17.4 million (28(cent) per diluTED share) for the fourth quarter of 2002, a
$6.3 million increase over net income of $11.1 million (18(cent) per diluted
share) for the fourth quarter of 2001. These results were driven by the strength
of equity in earnings from the Company's investment in Grupo Transportacion
Ferroviaria Mexicana, S.A. de C.V. ("Grupo TFM"), which contributed $15.2
million to the Company's quarterly earnings, a $10.2 million increase over the
fourth quarter of 2001. Other positive contributing factors during the quarter
included a decline in the income tax provision of $2.6 million, a $1.1 million
increase in other income and a $0.7 million improvement in equity in earnings
(losses) from other unconsolidated affiliates. These positive factors were
partially offset by a $3.8 million increase in operating expenses, a $2.7
million decline in revenues and a $1.8 million increase in interest expense.
For the year ended December 31, 2002, the Company's net income was $54.2 million
(87(cent) per diluted share) compared to $30.7 million (50(cent) per diluted
share) for 2001, an increase of $23.5 million. This improvement resulted from a
$14.3 million increase in equity in earnings from Grupo TFM, a $13.4 million
increase in other income, a $7.8 million decline in interest expense, and a $4.4
million gain realized on the sale of Mexrail, Inc. ("Mexrail") to KCS's
affiliate in Mexico, TFM, S.A. de C.V. ("TFM"). These items were partially
offset by a $7.4 million decline in operating income, a $4.1 million increase in
the income tax provision and a $1.0 million decline in the results from other
unconsolidated affiliates. Additionally, net income for the year ended December
31, 2002 includes $4.3 million of debt retirement costs associated with the
early retirement of term debt in June 2002. These costs were previously reported
net of income taxes as an extraordinary item, but have been reclassified in
accordance with the provisions of a new accounting standard. The related income
taxes are now reflected in the income tax provision. Equity in earnings for 2001
reflects the Company's proportionate share ($9.1 million) of the income recorded
by Grupo TFM relating to the reversion of certain concession assets to the
Mexican government. Additionally, net income for 2001 includes a $0.4 million
charge relating to the implementation of Statement of Financial Accounting
Standards No. 133, "Accounting for Derivative Instruments and Hedging
Activities." This charge was presented as a cumulative effect of an accounting
change, net of income taxes in 2001.
Diluted earnings per share information is as follows:
FOURTH QUARTER YEAR TO DATE
--------------------------- ----------------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
U.S. operations $ 0.10 $ 0.16 $ 0.45 $ 0.33
Grupo TFM and PCRC (includes allocated interest) 0.18 0.02 0.42 0.18
----------- ----------- ----------- -----------
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 0.28 0.18 0.87 0.51
Cumulative effect of accounting change, net of income taxes - - - (0.01)
----------- ----------- ----------- -----------
Diluted earnings per share - Net income $ 0.28 $ 0.18 $ 0.87 $ 0.50
----------- ----------- ----------- -----------
FOURTH QUARTER
During the fourth quarter of 2002, the Company's consolidated revenues decreased
$2.7 million and consolidated operating expenses rose $3.8 million compared to
the fourth quarter of 2001, resulting in a $6.5 million decline in operating
income quarter to quarter. The majority of the revenue decline related to the
Kansas City Southern Railway Company ("KCSR"), the Company's principal operating
subsidiary.
Although KCSR revenues declined $2.0 million during the fourth quarter of 2002
compared to the fourth quarter of 2001, KCSR continued to experience favorable
revenue trends in three of its five major commodity groups. On a comparative
basis, combined revenues for chemical and petroleum products, paper and forest
products and agriculture and mineral products increased over 4% during the
fourth quarter of 2002 driven by higher traffic volumes, increased length of
haul and price improvements in key traffic lanes. These quarter to quarter
revenue improvements were offset by lower revenues for coal and intermodal &
automotive business. Although overall net tons of coal delivered during the
fourth quarter increased 4% compared to the prior year quarter as a result of
increased customer demand, coal revenues declined $5.3 million quarter to
quarter primarily because of a contractual rate reduction at a major customer
that took effect on January 1, 2002. Also impacting quarterly coal revenue
comparisons was the expiration of a coal customer's contract effective April 1,
2002. Automotive revenues declined $2.3 million quarter to quarter due to the
loss of certain traffic effective May 2002.
Fourth quarter 2002 costs and expenses for KCSR increased $3.7 million compared
to the prior year quarter resulting from higher costs for compensation and
benefits, fuel, purchased services, car hire and depreciation. These cost
increases were partially offset by lower casualties and insurance expense.
Fringe benefits increased mostly as a result of higher health insurance costs
and an unfavorable adjustment for health care related post employment benefits
determined through a third-party actuarial analysis. The increase in fuel costs
was related to higher fuel prices partially offset by improved utilization and
purchased services rose as a result of higher car repair costs and an increase
to the reserve for environmental liabilities related to a specific site.
Compensation and car hire costs increased due mostly to the lingering effects
from the issues surrounding the third quarter 2002 implementation of the
Company's new transportation operating platform, Management Control System
("MCS"). By mid-November, however, the Company's operations began to experience
improved transit times and terminal activities as MCS capabilities began to be
fully integrated into KCS management processes. Depreciation expense also
increased due to the implementation of MCS. Casualties and insurance expense
declined substantially during the fourth quarter of 2002 compared to the fourth
quarter of 2001 due to a decline in personal injury expenses, lower derailment
expenses and the favorable settlement of an insurance claim. The net increase in
expenses contributed to a higher KCSR operating ratio of 88.6% in the fourth
quarter of 2002 compared to 84.8% for the same period in 2001, but an
improvement of 5.68 percentage points over the operating ratio from the third
quarter of 2002.
The Company's equity in earnings from Grupo TFM increased approximately $10.2
million quarter to quarter. Exclusive of the results from Mexrail, which was
acquired by TFM on March 27, 2002, fourth quarter 2002 Grupo TFM revenues
declined approximately 3% compared to the fourth quarter of 2001. Operating
expenses decreased approximately 7% quarter to quarter (under accounting
principles generally accepted in the United States of America - "U.S. GAAP").
Fourth quarter 2002 results for Grupo TFM include a $36.0 million deferred tax
benefit (calculated under U.S. GAAP) compared to a deferred tax benefit of $1.7
million in the fourth quarter of 2001. The variance in the deferred tax
calculation of Grupo TFM is mostly attributable to fluctuations in the peso
exchange rate and tax benefits derived from the impact of inflation in Mexico.
The Company reports its equity in Grupo TFM under U.S. GAAP, while Grupo TFM
reports under International Accounting Standards ("IAS").
Equity in losses from other unconsolidated affiliates was $0.5 million for the
fourth quarter of 2002 compared to losses of $1.2 million for the comparable
2001 quarter. This improvement partially relates to the sale of Mexrail in the
first quarter of 2002 as during the fourth quarter of 2001 the Company reported
equity in losses from Mexrail of $1.5 million. Also impacting this change was a
decline in equity in earnings from both Southern Capital Corporation ("Southern
Capital") and the Panama Canal Railway Company ("PCRC"). PCRC is currently not
operating at full capacity due to delays in the completion of the port of Balboa
expansion. The Balboa port expansion is expected to be complete by December of
2003 at which time the revenues of PCRC are anticipated to increase and the
financial performance of PCRC is expected to improve.
KCS's consolidated fourth quarter 2002 interest expense increased $1.8 million
from the prior year quarter as a result of a higher effective interest rate
partially offset by a lower debt balance.
YEAR TO DATE
For the year ended December 31, 2002, the Company's consolidated operating
income declined $7.4 million compared to 2001 as a result of a $17.0 million
decrease in revenues, partially offset by lower operating expenses, which
declined $9.6 million year over year. In 2002, KCSR revenues declined $12.7
million compared to 2001, primarily as a result of lower coal and automotive
revenue, partially offset by higher revenue for all other major commodity
groups. These revenue fluctuations resulted from trends similar to those
discussed in the fourth quarter analysis. Revenue from other subsidiaries
decreased approximately $4.3 million year over year due to demand driven volume
declines. KCSR's 2002 costs and expenses were $6.1 million lower than the prior
year due mostly to a decline in costs associated with fuel, casualties and
adjustments related to insurance settlements, partially offset by higher fringe
benefit costs, purchased services and depreciation expense. Year to date
operating results were adversely impacted by the MCS related congestion issues
that significantly impacted third quarter operations. The operating ratio for
KCSR was 89.2% for 2002 compared to 88.3% for 2001.
The Company's equity in earnings from Grupo TFM increased approximately $14.3
million year to year. In 2001, equity in earnings reflected the Company's
proportionate share ($9.1 million) of the income recorded by Grupo TFM relating
to the reversion of certain concession assets to the Mexican government.
Exclusive of this 2001 income, KCS's 2002 equity in earnings from Grupo TFM
increased $23.4 million compared to 2001. Exclusive of the results from Mexrail
for 2002, Grupo TFM's revenues decreased approximately 1% compared to 2001 and
operating expenses (under U.S. GAAP) were approximately 5% lower (exclusive of
the 2001 reversion income). For the year ended December 31, 2002, Grupo TFM's
results include an $84.8 million deferred tax benefit (calculated under U.S.
GAAP) compared to a deferred tax expense of $10.9 million in 2001. This variance
was caused by several factors, including a deferred tax expense recorded in 2001
related to the income from the line reversion, the weakening of the peso
relative to the U.S. dollar, as well as tax benefits derived from the impact of
Mexican inflation in 2002. The fluctuation in the peso exchange rate also
contributed to a $17.4 million exchange loss for 2002 compared to an exchange
loss of $2.8 million for 2001.
The Company reported equity in losses from other unconsolidated affiliates of
$2.4 million for 2002 compared to equity in losses of $1.4 million for 2001. In
2002, losses associated with PCRC were $3.8 million compared to $1.6 million in
2001. As mentioned in the fourth quarter analysis, in 2002 PCRC did not operate
at full capacity as initially planned due to the delay in completion of the port
expansion at Balboa. During 2001, losses were primarily related to the start-up
of operations at PCRC. Additionally, the Company reported equity losses from
Mexrail of $2.1 million in 2001 compared to essentially a break-even amount for
2002 prior to its sale to TFM. These losses were offset by equity earnings from
Southern Capital of $1.4 million and $2.4 million for the years ended December
31, 2002 and 2001, respectively.
KCS's consolidated 2002 interest expense decreased $7.8 million (15%) compared
to 2001 as a result of a lower effective interest rate for the first six months
of 2002 as well as substantially lower overall debt balances. The Company's debt
balance at December 31, 2002 was $582.6 million compared to $684.8 million at
September 30, 2001, a reduction of over $100 million during the past fifteen
months. Other items affecting the Company's year to date results include gains
totaling approximately $7.4 million related to the sale of certain non-operating
properties at a smaller subsidiary and a $4.9 million gain on the sale of
Wyandotte Garage Corporation, a former 80% owned subsidiary of the Company.
These items account for the majority of the increase noted in other income for
2002 compared to 2001. Additionally, the Company reported a $4.4 million gain on
the sale of Mexrail as a separate item in the accompanying consolidated
statements of income. Finally, as discussed in the earnings analysis and
commentary, the results for 2002 include $4.3 million of debt retirement costs
associated with the early retirement of term debt in June 2002. These costs were
previously reported as an extraordinary item, but have been reclassified in
accordance with Statement of Financial Accounting Standards No. 145, "Rescission
of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and
Technical Corrections" ("SFAS 145").
COMMENTS FROM THE CHAIRMAN
Michael R. Haverty, KCS's Chairman, President and Chief Executive Officer said,
"the operational performance of the Company continued to improve during the last
quarter of 2002 as KCSR adapts to the operational discipline required by MCS.
Key performance measurements for KCSR such as terminal dwell time, train speed
and average daily crew starts are starting to show improvements compared to
third quarter 2002 performance levels, which is evident in fourth quarter
operating income as it more than doubled compared to the third quarter of 2002.
In 2002, the chemical and petroleum products, agriculture and minerals and paper
and forest product commodity groups produced revenue increases for the fourth
quarter and the full year as compared to 2001 due to certain volume
improvements, longer hauls and targeted rate increases. Unfortunately however,
the strength in these commodity groups was offset by the significant declines in
coal and automotive revenues as discussed above. Our cost structure, although
certainly not at the level we expect, is continuing to rebound from the issues
surrounding MCS implementation. We now have the management tools to push
productivity initiatives and drive down costs.
During 2002, Grupo TFM provided a substantial contribution to our net income and
it continues to be a significant driver of the Company's profitability. During
the tough economic environment facing North America over the past several years,
Grupo TFM management has done a tremendous job of operating the strongest rail
franchise in Mexico and has been able to maintain its revenue base and control
its cost structure. When the economy begins to improve, Grupo TFM is poised to
take advantage of its leadership position in the NAFTA transportation
marketplace. We are continuing to await the resolution of the legal process with
respect to Grupo TFM's Value Added Tax ("VAT") claim and are optimistic about
the ultimate outcome of this matter.
As we look toward 2003 and beyond, we are confident that the Company's strategic
direction under its new MCS operating platform will provide opportunities for
continuous improvement in both operational effectiveness and efficiency. Our
focus is, and must be, firmly set on improving domestic operations and
generating stronger growth in our operating income. To accomplish this, we must
aggressively seek opportunities to expand our revenue base, effectively control
our cost structure through a more disciplined operating environment and strive
to provide award winning customer service. Management is committed to
accomplishing these objectives and believes that, in doing so, the Company will
be well prepared to take advantage of an economic recovery when it occurs. Our
commitment to the shareholders of KCS is to strive to maximize the value of our
rail franchise and build long-term shareholder value."
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. SUCH 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 YEAR ENDED
ENDED DECEMBER 31, DECEMBER 31,
----------------------- -------------------------
2002 2001 2002 2001
---------- ---------- ---------- ----------
REVENUES $ 144.2 $ 146.9 $ 566.2 $ 583.2
Costs and expenses 114.2 112.1 456.8 469.8
Depreciation and amortization 16.1 14.4 61.4 58.0
---------- ---------- ---------- ----------
OPERATING INCOME 13.9 20.4 48.0 55.4
Equity in net earnings (losses) of unconsolidated affiliates:
Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. (PRELIMINARY) 15.2 5.0 42.8 28.5
Other (0.5) (1.2) (2.4) (1.4)
Gain on sale of Mexrail, Inc. - - 4.4 -
Interest expense (11.7) (9.9) (45.0) (52.8)
Debt retirement costs - - (4.3) -
Other income 2.3 1.2 17.6 4.2
---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE 19.2 15.5 61.1 33.9
Income tax provision 1.8 4.4 6.9 2.8
---------- ---------- ---------- ----------
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 17.4 11.1 54.2 31.1
Cumulative effect of accounting change, net of income taxes - - - (0.4)
---------- ---------- ---------- ----------
NET INCOME $ 17.4 $ 11.1 $ 54.2 $ 30.7
PER SHARE DATA:
Basic Weighted Average Common shares outstanding (IN THOUSANDS) 60,987 59,035 60,336 58,598
Basic Earnings (Loss) per Common share
Income before cumulative effect of accounting change $ 0.28 $ 0.19 $ 0.89 $ 0.53
Cumulative effect of accounting change - - - (0.01)
---------- ---------- ---------- ----------
Net Income $ 0.28 $ 0.19 $ 0.89 $ 0.52
========== ========== ========== ==========
Diluted Weighted Average Common shares outstanding (IN THOUSANDS) 62,642 61,099 62,318 60,984
Diluted Earnings (Loss) per Common share
Income before cumulative effect of accounting change $ 0.28 $ 0.18 $ 0.87 $ 0.51
Cumulative effect of accounting change - - - (0.01)
---------- --------- --------- ---------
Net Income $ 0.28 $ 0.18 $ 0.87 $ 0.50
========== ========== ========== ==========
EXHIBIT 99.2
KANSAS CITY SOUTHERN
OPERATING STATEMENTS
DOLLARS IN MILLIONS
FOURTH QUARTER FOURTH QUARTER TWELVE MONTHS TWELVE MONTHS
2002 2001 2002 2001
-------------------- ------------------- ------------------- --------------------
Revenues
Freight Revenue $ 92.2 $ 88.3 $ 360.1 $ 346.2
Intermodal and Automotive
Revenue 13.6 16.0 59.9 69.0
Unit Coal Revenue 25.7 31.0 98.7 115.8
Haulage Revenue 2.5 2.5 10.0 10.0
Other Revenue 10.2 9.1 37.5 42.2
-------------------- ------------------- ------------------- --------------------
Total Revenues 144.2 146.9 566.2 583.2
-------------------- ------------------- ------------------- --------------------
Operating Expenses
Compensation 34.5 33.7 137.1 137.9
Fringe Benefits 16.2 13.8 60.7 55.0
Fuel 10.7 8.6 38.4 43.9
Material and Supplies 6.8 5.3 29.1 27.1
Car Hire 4.8 4.1 19.7 19.8
Purchased Services 16.1 15.2 59.6 57.0
Casualties & Insurance 3.2 13.7 25.2 42.1
Other 4.2 (0.4) 20.1 16.0
-------------------- ------------------- ------------------- --------------------
Net Operating Expenses 96.5 94.0 389.9 398.8
-------------------- ------------------- ------------------- --------------------
Fixed Expenses
Leases, Net 13.9 14.2 55.0 56.8
Depreciation 16.1 14.4 61.4 58.0
Taxes (Other Than Income) 3.8 3.9 11.9 14.2
-------------------- ------------------- ------------------- --------------------
Total Fixed Expenses 33.8 32.5 128.3 129.0
-------------------- ------------------- ------------------- --------------------
Total Expenses 130.3 126.5 518.2 527.8
-------------------- ------------------- ------------------- --------------------
Operating Income $ 13.9 $ 20.4 $ 48.0 $ 55.4
==================== =================== =================== ====================
Note:
Certain prior year amounts have been reclassified to conform to the current year presentation.
KANSAS CITY SOUTHERN RAILWAY
CARLOADINGS BY COMMODITY - YEAR ENDED DECEMBER 31, 2002
DOLLARS IN THOUSANDS
CARLOADINGS REVENUE
Year to Date % Year to Date %
------------------------------ ----------------------------
2002 2001 Change 2002 2001 Change
-------------- ------------- --------- ------------ ------------- -----------
COAL
205,543 197,166 4.2% Unit Coal $ 98,670 $ 115,825 (14.8)%
4,487 5,167 (13.2)% Other Coal 2,510 2,923 (14.1)%
-------------- ------------- ------------ -------------
210,030 202,333 3.8% Total 101,180 118,748 (14.8)%
-------------- ------------- ------------ -------------
CHEMICAL & PETROLEUM PRODUCTS
5,846 6,704 (12.8)% Agri Chemicals 4,213 5,304 (20.6)%
14,587 11,393 28.0% Gases 14,415 10,420 38.3%
22,110 22,138 (0.1)% Organic 23,318 22,554 3.4%
20,601 19,419 6.1% Inorganic 21,816 20,544 6.2%
53,306 61,158 (12.8)% Petroleum 37,894 39,117 (3.1)%
28,977 27,028 7.2% Plastics 29,056 26,904 8.0%
-------------- ------------- ------------ -------------
145,427 147,840 (1.6)% Total 130,712 124,843 4.7%
-------------- ------------- ------------ -------------
AGRICULTURE AND MINERALS
46,753 47,408 (1.4)% Domestic Grain 37,121 36,128 2.7%
13,933 13,309 4.7% Export Grain 11,268 11,118 1.3%
28,194 26,347 7.0% Food Products 24,190 22,875 5.7%
22,236 23,467 (5.2)% Ores and Minerals 12,569 12,434 1.1%
15,417 15,145 1.8% Stone, Clay & Glass 12,027 11,220 7.2%
-------------- ------------- ------------ -------------
126,533 125,676 0.7% Total 97,175 93,775 3.6%
-------------- ------------- ------------ -------------
PAPER & FOREST PRODUCTS
88,162 85,634 3.0% Pulp/Paper 67,556 61,195 10.4%
6,402 6,960 (8.0)% Scrap Paper 3,842 3,812 0.8%
31,215 36,184 (13.7)% Pulpwood/Logchips 13,448 15,037 (10.6)%
27,448 26,268 4.5% Lumber/Plywood 25,753 23,109 11.4%
18,066 19,831 (8.9)% Metal/Scrap 14,832 15,187 (2.3)%
6,897 7,265 (5.1)% Military/Other Carloads 9,358 10,799 (13.3)%
-------------- ------------- ------------ -------------
178,190 182,142 (2.2)% Total 134,789 129,139 4.4%
-------------- ------------- ------------ -------------
INTERMODAL & AUTOMOTIVE
12,899 34,710 (62.8)% Automotive 9,297 21,616 (57.0)%
274,473 265,101 3.5% Intermodal 50,641 47,506 6.6%
-------------- ------------- ------------ -------------
287,372 299,811 (4.1)% Total 59,938 69,122 (13.3)%
-------------- ------------- ------------ -------------
947,552 957,802 (1.1)% TOTAL FOR BUSINESS UNITS 523,794 535,627 (2.2)%
22,572 26,090 (13.5)% HAULAGE 10,025 10,025 0.0%
(6,079) (9,125) 33.4% Adjustments (5,090) (4,609) (10.4)%
-------------- ------------- ------------ -------------
964,045 974,767 (1.1)% TOTAL $ 528,729 $ 541,043 (2.3)%
============== ============= ============ =============
NOTE:
CERTAIN PRIOR YEAR AMOUNTS HAVE BEEN RECLASSIFIED TO CONFORM TO THE CURRENT YEAR PRESENTATION.
KANSAS CITY SOUTHERN RAILWAY
CARLOADINGS BY COMMODITY - FOURTH QUARTER 2002
DOLLARS IN THOUSANDS
CARLOADINGS REVENUE
Fourth Quarter % Fourth Quarter %
------------------------------ ----------------------------
2002 2001 Change 2002 2001 Change
-------------- ------------- --------- ------------ ------------- ----------
COAL
53,340 52,899 0.8% Unit Coal $ 25,763 $ 30,989 (16.9)%
1,334 1,441 (7.4)% Other Coal 762 803 (5.1)%
-------------- ------------- ------------ -------------
54,674 54,340 0.6% 26,525 31,792 (16.6)%
-------------- ------------- ------------ -------------
CHEMICAL & PETROLEUM PRODUCTS
1,442 1,777 (18.9)% Agri Chemicals 1,040 1,391 (25.2)%
3,916 2,989 31.0% Gases 3,946 2,746 43.7%
5,271 5,359 (1.6)% Organic 5,844 5,690 2.7
5,448 4,825 12.9% Inorganic 5,520 5,171 6.7%
13,054 14,179 (7.9)% Petroleum 8,931 9,375 (4.7)%
6,997 6,886 1.6% Plastics 7,298 6,647 9.8%
-------------- ------------- ------------ -------------
36,128 36,015 0.3% Total 32,579 31,020 5.0%
-------------- ------------- ------------ -------------
AGRICULTURE AND MINERALS
12,112 11,599 4.4% Domestic Grain 10,233 8,976 14.0%
4,151 4,838 (14.2)% Export Grain 3,213 4,344 (26.0)%
7,432 6,581 12.9% Food Products 6,412 5,845 9.7%
5,837 5,516 5.8% Ores and Minerals 3,336 2,864 16.5%
3,493 3,666 (4.7)% Stone, Clay & Glass 2,839 2,738 3.7%
-------------- ------------- ------------ -------------
33,025 32,200 2.6% Total 26,033 24,767 5.1%
-------------- ------------- ------------ -------------
PAPER & FOREST PRODUCTS
22,554 22,386 0.8% Pulp/Paper 17,858 16,530 8.0%
1,805 1,882 (4.1)% Scrap Paper 1,134 1,072 5.8%
6,791 9,238 (26.5)% Pulpwood/Logs/Chips 3,336 3,852 (13.4)%
6,579 6,301 4.4% Lumber/Plywood 6,570 5,745 14.4%
4,162 3,545 17.4% Metal/Scrap 3,345 2,565 30.4%
1,472 1,640 (10.2)% Military/Other carloads 1,789 2,978 (39.9)%
-------------- ------------- ------------ -------------
43,363 44,992 (3.6)% Total 34,032 32,742 3.9%
-------------- ------------- ------------ -------------
INTERMODAL & AUTOMOTIVE
1,722 6,068 (71.6)% Automotive 1,497 3,833 (60.9)%
63,078 67,222 (6.2)% Intermodal 12,110 12,249 (1.1)%
-------------- ------------- ------------ -------------
64,800 73,290 (11.6)% Total 13,607 16,082 (15.4)%
-------------- ------------- ------------ -------------
231,990 240,837 (3.7)% TOTAL FOR BUSINESS UNITS 132,776 136,403 (2.7)%
4,874 6,362 (23.4)% HAULAGE 2,480 2,501 (0.8)%
(1,145) (2,097) 45.4% Adjustments (1,275) (1,128) (13.0)%
-------------- ------------- ------------ -------------
235,719 245,102 (3.8)% TOTAL $ 133,981 $ 137,776 (2.8)%
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NOTE:
CERTAIN PRIOR YEAR AMOUNTS HAVE BEEN RECLASSIFIED TO CONFORM TO THE CURRENT YEAR PRESENTATION.
KANSAS CITY SOUTHERN
CONSOLIDATED BALANCE SHEETS PRELIMINARY
DECEMBER 31, 2002 DECEMBER 31, 2001
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(UNAUDITED)
ASSETS
Cash $ 19.0 $ 24.7
Accounts receivable 115.9 130.0
Inventories 34.2 27.9
Other current assets 44.5 71.8
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Total current assets 213.6 254.4
Investments 420.1 386.8
Properties, net of depreciation 1,337.4 1,327.4
Other assets 32.1 42.3
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Total assets $ 2,003.2 $ 2,010.9
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt $ 10.0 $ 46.7
Accounts payable 44.6 50.4
Accrued liabilities 128.6 150.0
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Total current liabilities 183.2 247.1
Long-term debt 572.6 611.7
Deferred income taxes 392.8 370.2
Other 104.2 101.6
Stockholders' equity 750.4 680.3
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Total liabilities and stockholders' equity $ 2,003.2 $ 2,010.9
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