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 29, 2004
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 29,
2004 entitled, "Kansas City
Southern Reports Year-to-Date
and Fourth 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 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
Kansas City Southern ("KCS" or "Company") is filing under Item 12 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
29, 2004, announcing KCS's fourth quarter and year to date 2003 earnings and
operating results. Included in Exhibit 99.2 are schedules regarding certain
financial information discussed at the Company's fourth quarter 2003 analyst
presentation and conference call.
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: January 30, 2004 By: /S/ RONALD G. RUSS
----------------------------
Ronald G. Russ
Executive Vice President and Chief Financial 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: January 29, 2004
Media Contact: William H. Galligan Phone: 816/983-1551
william.h.galligan@kcsr.com
KANSAS CITY SOUTHERN REPORTS YEAR-TO-DATE
AND FOURTH QUARTER 2003 EARNINGS
EARNINGS ANALYSIS & COMMENTARY
Kansas City Southern (KCS or Company) (NYSE: KSU) reported net income of $11.2
million ($0.08 per diluted share) for the year ended December 31, 2003 compared
to $57.2 million ($0.91 per diluted share) for the year ended December 31, 2002.
The Company's domestic business, excluding an adjustment in claims reserves of
$21.1 million, improved its operating income from $48.0 million in 2002 to $50.2
million in 2003. The Company experienced positive effects year over year from
revenue growth, which increased $15.1 million (2.7%) to $581.3 million in 2003.
Additionally, The Kansas City Southern Railway Company (KCSR) car hire costs
declined ($9.7 million) as did consolidated other operating expenses ($5.5
million). These improvements were partially offset by higher KCSR fuel costs,
which rose $9.0 million in 2003 compared to 2002, and increases in certain other
volume-related operating costs.
Based on preliminary results, equity in earnings from Grupo Transportacion
Ferroviaria Mexicana, S.A. de. C.V. (Grupo TFM) were $11.3 million in 2003
compared to $45.8 million in 2002. This decline resulted primarily from a $19.0
million reduction in the deferred tax benefit during 2003 compared to 2002
(calculated under U.S GAAP) and the devaluation of the peso, which resulted in
an approximate $34 million decline in Grupo TFM revenues year over year. In
2002, equity earnings from Grupo TFM included a $39.2 million deferred tax
benefit compared to $20.2 million in 2003.
For the fourth quarter of 2003, KCS reported a net loss of $6.2 million (loss
per diluted share of $0.12) compared to net income of $20.4 million for the same
2002 period. The decrease in net income was primarily attributable to an
increase in claims reserves of $13.5 million (after tax). The increase in these
reserves was necessary to better reflect the claims risk in the U.S. rail
sector, which includes occupational illness, third party liability, Federal
Employers Liability Act (FELA) and property damage. The earnings per share
impact of this increase to claims reserves was $0.22 per diluted share in the
fourth quarter of 2003. Excluding this adjustment, net income for the fourth
quarter 2003 would have been $7.3 million ($0.10 per diluted share) and
operating income would have been 2.9% higher than the fourth quarter of 2002.
This increase in ongoing operating income was driven by higher consolidated
fourth quarter revenue, which rose to $148.5 million, a 3% increase over fourth
quarter 2002. Preliminary results from Grupo TFM yielded a $13.1 million decline
in equity earnings to $5.1 million in fourth quarter 2003 compared to $18.2
million in fourth quarter 2002.
EARNINGS (LOSS) PER SHARE INFORMATION1:
FOURTH QUARTER YTD THROUGH 12/31
--------------- -----------------
2003 2002 2003 2002
-------- ------- ------- -------
U.S. Operations $ (0.13) $ 0.10 $ 0.03 $ 0.45
Grupo TFM and PCRC (including allocated
interest), PRELIMINARY 0.01 0.22 (0.09) 0.46
------- ------- ------- -------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE (0.12) 0.32 (0.06) 0.91
Cumulative effect of accounting change, net
of income taxes 0.14
------- ------- ------- -------
NET INCOME (LOSS) $ (0.12) $ 0.32 $ 0.08 $ 0.91
YEAR-TO-DATE HIGHLIGHTS
KCSR revenues for the year ended December 31, 2003 increased by 2.8% to $575.3
million compared to $559.6 million in 2002. Revenue increases in the agriculture
and minerals ($11.3 million), and paper and forest products ($11.3 million)
commodity groups reflected a strong resurgence in carload traffic that took
place in the second half of 2003 on KCSR. Traffic volume for all of 2003
increased approximately 2% year over year. Excluding unit train coal traffic,
traffic volume increased approximately 5%. Coal revenues declined by $8.5
million from 2002, which had been a record tonnage year for KCSR. Chemical and
petroleum product revenues were down $6.9 million compared to the prior year
with continued weakness in its plastics business due to the higher costs of
natural gas throughout 2003.
Operationally, KCSR realized lower car hire costs and other expenses, which were
driven by KCSR's new information technology platform, MCS, installed in 2002.
These cost reductions helped to offset volume-related increases for certain
other 2003 operating costs. For instance, even though KCS realized a $15.1
million increase in revenues during 2003, employee compensation and related
costs were approximately the same as 2002 with an average staffing level of
2,612 compared to 2,649 in 2002. Fuel costs for 2003 rose due to a $0.17
increase in the average price per gallon over the prior year.
Casualties and insurance costs for 2003 increased by $31.2 million related to
the increase in claims reserves discussed above, as well as the impact of
favorable insurance settlements in 2002.
As part of the same comprehensive review leading to the increase in the reserves
for claims, KCSR retained the services of an international consulting
engineering firm to undertake a depreciation study of the Company's property,
plant and equipment. While there can be no assurance that the results will be
--------------------------------------------------
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.
attained, the study, which will soon be filed with the U.S. Surface
Transportation Board and will require its approval, finds that, beginning in
2004, depreciation expense on KCSR can be reduced by $10 million to $12 million
per annum.
Grupo TFM overall freight volumes in 2003 increased 3.3% over 2002. Revenues
declined 1.9% primarily due to the impact of the devaluation of the Mexican peso
against the U.S. dollar. In 2003, 59.7% of Grupo TFM's revenues were U.S. dollar
denominated, and the Mexican peso suffered an approximate 12% devaluation
against the U.S. dollar.
Consolidated other income declined $10.8 million year over year due to lower
sales of non-operating assets in 2003.
Also contributing to KCS net income during 2003 was a one-time $8.9 million
benefit (net of tax) recorded in the first quarter of 2003 relating to the
cumulative effect of a required change in accounting for removal costs of
certain track structure assets. In addition, in 2002, the Company recorded a
charge of $4.3 million related to debt retirement and a $4.4 million gain on the
sale of its ownership interest in Mexrail to Grupo TFM.
FOURTH QUARTER HIGHLIGHTS
Fourth quarter 2003 KCSR revenues increased by 3%, to $147.0 million, compared
with $142.7 million for the fourth quarter 2002. All major commodities showed
increases in revenue and freight volume except for plastics and coal.
Agriculture and minerals revenues increased by $4.4 million, led principally by
strong export grain movements. Paper and forest products revenues grew $2.2
million, attributable to a 9% increase in pulp and paper revenues, and a 9% gain
in lumber revenues. Intermodal and automotive revenues increased $1.7 million in
the fourth quarter 2003 compared with fourth quarter 2002. Coal revenues
declined by $3.7 million due to lower demand related to excess coal stockpiles
and some minor unloading disruptions at plants served by KCSR. Chemical and
petroleum products revenues were off $1.3 million due to continued weakness in
plastics. Overall, KCSR volume increased 8% quarter to quarter. Excluding coal
movements, volume increased 13% over the prior year period.
KCS reported an operating loss of $6.8 million in the fourth quarter of 2003
compared to operating income of $13.9 million in the same 2002 period. This
$20.7 decline resulted from a $27.0 million increase in casualties and insurance
costs (partially attributed to favorable insurance settlements during the fourth
quarter 2002 of $5.6 million) and higher fuel expense at KCSR of $1.4 million.
These declines were partially offset by higher revenues and service quality and
productivity improvements in the fourth quarter of 2003. In particular, a $3.3
million decrease in car hire, and a $2.1 million decrease in other costs helped
offset increases in other operating expenses.
The Company's preliminary equity in earnings from Grupo TFM decreased $13.1
million quarter-to-quarter. Grupo TFM fourth quarter revenues declined 2.5% to
$175 million. The decline was driven by the Mexican peso devaluation against the
U.S. dollar, down approximately 10% and lower automotive
shipments, down 8.3%. Fourth quarter 2002 equity in earnings from Grupo TFM
included a $19.9 million deferred tax benefit (calculated under U.S. GAAP). In
the fourth quarter of 2003, the deferred tax benefit reported in Grupo TFM's
equity earnings was $ 6.0 million, a reduction of $13.9 million from the
comparable 2002 period. 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
Financial Reporting Standards (IFRS).
COMMENTS FROM THE CHAIRMAN
Michael R. Haverty, KCS's Chairman, President and Chief Executive Officer stated
"We are pleased with the continued revenue and operating performance
improvements at KCSR which will carry into 2004 and result in bottom line
improvements. KCSR's success has been somewhat masked by the necessity of taking
a substantial charge in the fourth quarter related to claims reserves.
"KCSR is no different from some of the other North American Class I railroads
that have recently adjusted claims reserves to protect themselves from the
realities of the tort litigation environment in the U.S. in which we operate.
The claims adjustment is not a reflection of KCSR's safety record. In nearly
every measurement, KCSR has consistently been judged as one of the safest
railroad operations in the industry. Nevertheless, in order to adequately
protect our Company, we made the hard but correct decision to increase our
claims reserves by $13.5 million, after-tax, in the fourth quarter of 2003.
"With respect to the pending NAFTA Rail transaction, KCS remains committed to
its efforts to complete the transaction. Currently, the dispute between KCS and
Grupo TMM involving the validity of the acquisition contract is in binding
arbitration governed by Delaware law under the auspices of the American
Arbitration Association.
"Recently, there have been important developments concerning TFM's Value Added
Tax (VAT) Refund Claim. On January 19, 2004, the Mexican Treasury, a branch of
the Mexican Finance Ministry, delivered to TFM a VAT refund certificate in the
amount of over $2.1 billion pesos, the same amount as the refund originally
claimed by TFM in 1997. The next day, another branch of the Mexican Finance
Ministry, the Tax Administration Service (SAT) delivered to TFM its preliminary
results of its audit of TFM's 1997 tax returns. SAT has preliminarily concluded
that the documentation used by TFM to support the VAT receivable and
depreciation shown on its 1997 tax return did not meet the requirements of
applicable law. As a result of its preliminary findings, the SAT has
administratively attached the VAT refund certificate delivered to TFM. TFM has
20 business days to supply the requested documentation to SAT, and it has other
remedies available to it under Mexican law to protect its rights. We expect TFM
to respond to the SAT's preliminary audit conclusions and to take all other
legal actions necessary to protect the rights of its shareholders.
"We at KCS are looking ahead to 2004 with a high degree of confidence in our
growth prospects. The year has begun well for the railroad industry in general
and KCSR in particular. The North American economy is strengthening and our MCS
computer platform, as advertised, is resulting in better management of every
aspect of the railroad. MCS will soon be implemented on Tex-Mex Railway, a
subsidiary of TFM. Our marketing and operations teams are simultaneously growing
our business and improving our customer service -- a winning combination. We are
fully committed to continuing to grow traffic routed via KCS to and from Mexico.
Last year we saw a 25% increase in our KCS/TFM carloads and with a robust
economy, we expect to see a continued positive trend throughout 2004."
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.
KANSAS CITY SOUTHERN
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA)
(UNAUDITED)
THREE MONTHS YEAR ENDED
ENDED DECEMBER 31, DECEMBER 31,
2003 2002 2003 2002
------ ------ ------ ------
REVENUES $148.5 $144.2 $581.3 $566.2
COSTS AND EXPENSES
Compensation and benefits 51.4 50.7 197.8 197.8
Depreciation and amortization 16.2 16.1 64.3 61.4
Purchased services 17.4 16.1 63.5 59.6
Casualties and insurance 30.2 3.2 56.4 25.2
Operating leases 13.8 13.9 57.2 55.0
Fuel 12.1 10.7 47.4 38.4
Car hire 1.5 4.8 10.0 19.7
Other 12.7 14.8 55.6 61.1
------ ------ ------ ------
TOTAL COSTS AND EXPENSES 155.3 130.3 552.2 518.2
OPERATING INCOME (LOSS) (6.8) 13.9 29.1 48.0
Equity in net earnings (losses) of
unconsolidated affiliates
Grupo Transportacion Ferroviaria Mexicana,
S.A. de C.V. (PRELIMINARY) 5.1 18.2 11.3 45.8
Other (0.3) (0.5) (1.3) (2.4)
Gain on sale of Mexrail, Inc. (11.6) (11.7) (46.4) (45.0)
Debt retirement costs - - - (4.3)
Other income 2.0 2.3 6.8 17.6
------ ------ ------ ------
INCOME (LOSS) BEFORE INCOME TAXES AND
CUMULATIVE EFFECT OF ACCOUNTING CHANGE (11.6) 22.2 (0.5) 64.1
Income tax provision (benefit) (5.4) 1.8 (2.8) 6.9
------ ------ ------ ------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE (6.2) 20.4 2.3 57.2
Cumulative effect of accounting change, net
of income taxes - - 8.9 -
------ ------ ------ ------
(6.2) 20.4 11.2 57.2
PREFERRED STOCK DIVIDENDS 1.2 0.1 5.9 0.2
------ ------ ------ ------
NET INCOME (LOSS) AVAILABLE TO COMMON
SHAREHOLDERS $ (7.4) $ 20.3 $ 5.3 $ 57.0
====== ====== ====== ======
PER SHARE DATA
--------------
Basic weighted average Common shares
outstanding (IN THOUSANDS) 62,053 60,987 61,725 60,336
Basic earnings (loss) per Common share
Income (loss) before cumulative effect
of accounting change $ (0.12) $ 0.33 $ 0.06 $ 0.94
Cumulative effect of accounting change - - 0.14 -
------ ------ ------ ------
Net income (loss) $ (0.12) 0.33 0.08 0.94
Diluted weighted average Common shares
outstanding (IN THOUSANDS) 62,053 62,642 61,725 62,318
Diluted earnings (loss) per Common share
Income (loss) before cumulative effect $ (0.12) 0.32 (0.06) 0.91
Cumulative effect of accounting change - - 0.14 -
------ ------ ------ ------
Net income (loss) $ (0.12) 0.32 0.08 0.91
EXHIBIT 99.1
KANSAS CITY SOUTHERN
OPERATING STATEMENTS
DOLLARS IN MILLIONS
FOURTH QUARTER FOURTH QUARTER YEAR TO DATE YEAR TO DATE
2003 2002 2003 2002
------------ ------------ ------------- -------------
Revenues
Freight Revenue $ 100.0 $ 93.3 $ 379.2 $ 360.1
Intermodal and
Automotive Revenue 15.4 13.6 59.1 59.9
Unit Coal Revenue 22.4 25.8 90.9 98.7
Haulage Revenue 2.6 2.5 10.5 10.0
Other Revenue 8.1 9.0 41.6 37.5
------------ ------------ ------------- -------------
Total Revenues 148.5 144.2 581.3 566.2
------------ ------------ ------------- -------------
Operating Expenses
Compensation and Benefits 51.4 50.7 197.8 197.8
Fuel 12.1 10.7 47.4 38.4
Material and Supplies 5.6 6.8 26.9 29.1
Car Hire 1.5 4.8 10.0 19.7
Purchased Services 17.4 16.1 63.5 59.6
Casualties & Insurance 30.2 3.2 56.4 25.2
Other 3.4 8.1 13.9 20.1
------------ ------------ ------------- -------------
Net Operating Expenses 121.6 100.4 415.9 389.9
------------ ------------ ------------- -------------
Fixed Expenses
Leases, Net 13.8 13.9 57.2 55.0
Depreciation 16.2 16.1 64.3 61.4
Taxes (Other Than Income) 3.7 (0.1) 14.8 11.9
------------ ------------ ------------- -------------
Total Fixed Expenses 33.7 29.9 136.3 128.3
------------ ------------ ------------- -------------
Total Expenses 155.3 130.3 552.2 518.2
------------ ------------ ------------- -------------
Operating Income $ (6.8) $ 13.9 $ 29.1 $ 48.0
============ ============ ============= =============
Kansas City Southern Railway
Carloadings By Commodity - Year Ended December 31, 2003
Dollars in Thousands
Carloadings Revenue
Year to Date Year to Date
----------------------------------- % ----------------------------------- %
2003 2002 Change 2003 2002 Change
------------ ------------ ------------ ------------
Coal
188,227 205,543 (8.4)% Unit Coal $ 90,918 $ 98,670 (7.9)%
3,141 4,487 (30.0)% Other Coal 1,756 2,510 (30.0)%
------------ ------------ ------------ ------------
191,368 210,030 (8.9)% Total 92,674 101,180 (8.4)%
------------ ------------ ------------ ------------
Chemical & Petroleum
Products
5,931 5,846 1.5% Agri Chemicals 3,911 4,213 (7.2)%
15,052 14,587 3.2% Gases 15,031 14,415 4.3%
23,589 22,110 6.7% Organic 23,800 23,318 2.1%
21,845 20,601 6.0% Inorganic 23,048 21,816 5.6%
54,610 53,306 2.4% Petroleum 37,169 37,894 (1.9)%
18,955 28,977 (34.6)% Plastics 20,883 29,056 (28.1)%
------------ ------------ ------------ ------------
139,982 145,427 (3.7)% Total 123,842 130,712 (5.3)%
------------ ------------ ------------ ------------
Agriculture and Minerals
45,002 46,753 (3.7)% Domestic Grain 36,742 37,121 (1.0)%
21,279 13,933 52.7% Export Grain 17,682 11,268 56.9%
31,979 28,194 13.4% Food Products 26,387 24,190 9.1%
25,755 22,236 15.8% Ores and Minerals 14,764 12,569 17.5%
16,571 15,417 7.5% Stone, Clay & Glass 12,916 12,027 7.4%
------------ ------------ ------------ ------------
140,586 126,533 11.1% Total 108,491 97,175 11.6%
------------ ------------ ------------ ------------
Paper & Forest Products
94,824 88,162 7.6% Pulp/Paper 75,784 67,556 12.2%
7,224 6,402 12.8% Scrap Paper 4,445 3,842 15.7%
30,009 31,215 (3.9)% Pulpwood/Logchips 13,816 13,448 2.7%
30,241 27,448 10.2% Lumber/Plywood 29,330 25,753 13.9%
17,987 18,066 (0.4)% Metal/Scrap 15,192 14,832 2.4%
5,974 6,897 (13.4)% Military/Other Carloads 7,570 9,358 (19.1)%
------------ ------------ ------------ ------------
186,259 178,190 4.5% Total 146,137 134,789 8.4%
------------ ------------ ------------ ------------
Intermodal & Automotive
6,980 12,899 (45.9)% Automotive 5,595 9,297 (39.8)%
303,507 274,473 10.6% Intermodal 53,474 50,641 5.6%
------------ ------------ ------------ ------------
310,487 287,372 8.0% Total 59,069 59,938 (1.4)%
------------ ------------ ------------ ------------
968,682 947,552 2.2% TOTAL FOR BUSINESS UNITS 530,213 523,794 1.2%
39,342 39,929 (1.5)% Haulage 10,518 10,025 4.9%
(3,544) (6,079) 41.7% Adjustments (1,025) (5,090) 79.9%
------------ ------------ ------------ ------------
1,004,480 981,402 2.4% TOTAL $ 539,706 $ 528,729 2.1%
============ ============ ============ ============
Kansas City Southern Railway
Carloadings By Commodity - Fourth Quarter 2003
Dollars in Thousands
Carloadings Revenue
Fourth Quarter Fourth Quarter
--------------------------- % --------------------------- %
2003 2002 Change 2003 2002 Change
------------ ------------ ------------ ------------
Coal
49,110 53,340 (7.9)% Unit Coal $ 22,368 $ 25,763 (13.2)%
766 1,334 (42.6)% Other Coal 436 762 (42.8)%
------------ ------------ ------------ ------------
49,876 54,674 (8.8)% Total 22,804 26,525 (14.0)%
------------ ------------ ------------ ------------
Chemical & Petroleum Products
1,643 1,442 13.9% Agri Chemicals 1,053 1,040 1.3%
3,936 3,916 0.5% Gases 4,015 3,946 1.7%
7,029 5,271 33.4% Organic 6,268 5,844 7.3%
5,354 5,448 (1.7)% Inorganic 5,866 5,520 6.3%
13,334 13,054 2.1% Petroleum 9,172 8,931 2.7%
4,283 6,997 (38.8)% Plastics 4,918 7,298 (32.6)%
------------ ------------ ------------ ------------
35,579 36,128 (1.5)% Total 31,292 32,579 (4.0)%
------------ ------------ ------------ ------------
Agriculture and Minerals
12,130 12,112 0.1% Domestic Grain 9,984 10,233 (2.4)%
8,059 4,151 94.1% Export Grain 7,143 3,213 122.3%
7,036 7,432 (5.3)% Food Products 6,137 6,412 (4.3)%
6,641 5,837 13.8% Ores and Minerals 3,810 3,336 14.2%
4,211 3,493 20.6% Stone, Clay & Glass 3,328 2,839 17.2%
------------ ------------ ------------ ------------
38,077 33,025 15.3% Total 30,402 26,033 16.8%
------------ ------------ ------------ ------------
Paper & Forest Products
23,985 22,554 6.3% Pulp/Paper 19,541 17,858 9.4%
2,040 1,805 13.0% Scrap Paper 1,227 1,134 8.2%
7,258 6,791 6.9% Pulpwood/Logs/Chips 3,380 3,336 1.3%
7,380 6,579 12.2% Lumber/Plywood 7,148 6,570 8.8%
4,405 4,162 5.8% Metal/Scrap 3,536 3,345 5.7%
1,249 1,472 (15.1)% Military/Other carloads 1,411 1,789 (21.1)%
------------ ------------ ------------ ------------
46,317 43,363 6.8% Total 36,243 34,032 6.5%
------------ ------------ ------------ ------------
Intermodal & Automotive
1,755 1,722 1.9% Automotive 1,450 1,497 (3.1)%
79,200 63,078 25.6% Intermodal 13,885 12,110 14.7%
------------ ------------ ------------ ------------
80,955 64,800 24.9% Total 15,335 13,607 12.7%
------------ ------------ ------------ ------------
250,804 231,990 8.1% TOTAL FOR BUSINESS UNITS 136,076 132,776 2.5%
9,573 9,715 (1.5)% Haulage 2,574 2,480 3.8%
(735) (1,145) 35.8% Adjustments - (1,275) 100.0%
------------ ------------ ------------ -----------
259,642 240,560 7.9% TOTAL $ 138,650 $ 133,981 3.5%
============ ============ ============ ===========
KANSAS CITY SOUTHERN
CONSOLIDATED BALANCE SHEETS PRELIMINARY
(DOLLARS IN MILLIONS)
DECEMBER 31, DECEMBER 31,
2003 2002
---- ----
(UNAUDITED)
ASSETS
Cash $ 135.4 $ 19.0
Accounts receivable 114.6 118.5
Inventories 36.8 34.2
Other current assets 21.3 44.5
---------------- ----------------
Total current assets 308.1 216.2
Investments 441.7 423.1
Properties, net of depreciation 1,362.5 1,337.4
Other assets 39.6 32.1
---------------- ----------------
Total assets $ 2,151.9 $ 2,008.8
================ ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt $ 9.9 $ 10.0
Accounts payable 36.7 47.7
Accrued liabilities 128.2 128.6
---------------- ----------------
Total current liabilities 174.8 186.3
Long-term debt 513.5 572.6
Deferred income taxes 391.5 392.8
Other 109.4 104.2
Stockholders' equity 962.7 752.9
---------------- ----------------
Total liabilities and stockholders'
equity $ 2,151.9 $ 2,008.8
================ ================