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):
OCTOBER 29, 2003
KANSAS CITY SOUTHERN
(Exact name of company as specified in its charter)
DELAWARE 1-4717 44-0663509
--------------------------- ------------------------ ----------------------
State or other jurisdiction (Commission file number) (IRS Employer
of incorporation) 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
October 29, 2003 entitled,
"Kansas City Southern
Reports Third 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 furnishing under Item 12 of this
Current Report on Form 8-K the information included as Exhibit 99.1 and 99.2
of this report. Exhibit 99.1 is the Company's press release, dated October 29,
2003, announcing KCS's third 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 third quarter 2003 analyst
presentation and conference call.
The information in this Current Report on Form 8-K, including the exhibits,
shall not be deemed "filed" for the purposes of or otherwise subject to the
liabilities under Section 18 of the Securities Exchange Act of 1934, and shall
not be deemed to be incorporated by reference into the fillings of the
registrant under the Securities Act of 1933.
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: November 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
Cathedral Square - 427 West 12TH Street - P.O. Box 219335
Kansas City, Missouri 64121-9335 NYSE SYMBOL: KSU
Date: October 29, 2003
Media Contact: William H. Galligan Phone: 816/983-1551
william.h.galligan@kcsr.com
KANSAS CITY SOUTHERN REPORTS THIRD QUARTER 2003 EARNINGS
EARNINGS ANALYSIS & COMMENTARY
Kansas City Southern (KCS or Company) (NYSE: KSU) reported net income of $4.3
million ($0.02 per diluted share) for the third quarter of 2003, compared to net
income of $10.6 million ($0.17 per diluted share) for the third quarter of 2002.
Consolidated revenues for the third quarter of 2003 were $146.3 million,
compared to $138.9 million for the comparable 2002 period, a 5% increase.
Operating income more than doubled to $14.9 million compared to $6.2 million
during the third quarter last year. Consolidated KCS results were negatively
affected by lower earnings from Grupo Transportacion Ferroviaria Mexicana, S.A.
de C.V. (Grupo TFM) and a reduction in other income. In addition, KCS earnings
per share for the third quarter of 2003 were impacted by the accumulated
dividends for the 4.25% Redeemable Cumulative Convertible Perpetual Preferred
Stock issued April 29, 2003. These preferred dividends reduced earnings per
share by five cents in the third quarter of 2003.
For the nine months ended September 30, 2003, consolidated net income was $17.4
million ($0.20 per diluted share) compared to $36.8 million ($0.59 per diluted
share). This $19.4 million decrease was the result of a $20.5 million decline in
equity in net earnings of unconsolidated affiliates, a $10.5 million decline in
other income, and a $9.0 increase in costs and expenses. Partially offsetting
was a one-time $8.9 million benefit (net of tax) booked 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.
Diluted earnings per share information1:
THIRD QUARTER YTD THROUGH 9/30
------------- ----------------
2003 2002 2003 2002
---- ---- ---- ----
U.S. Operations 0.06 0.08 0.16 0.35
Grupo TFM and PCRC
(including allocated interest) (0.04) 0.09 (0.10) 0.24
----- -------- ----- -----
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE 0.02 0.17 0.06 0.59
Cumulative effect of accounting
change, net of income taxes - - 0.14 -
----- -------- ----- -----
NET INCOME 0.02 0.17 0.20 0.59
----- -------- ----- -----
-----------------------------------
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 U.S. GAAP measurement is net income, which is included
in the consolidated statements of income included in this press release.
THIRD QUARTER
Consolidated operating income for the third quarter of 2003 was $14.9 million,
compared to $6.2 million for comparable 2002, an $8.7 million increase. Third
quarter 2003 revenues increased by $7.4 million compared to third quarter of
2002. Consolidated costs and expenses decreased by $1.3 million
quarter-to-quarter, principally due to decreases in car hire and compensation
expenses, and further boosted by operating gains on property sales of $4.1
million compared to $2.7 million for the third quarter of 2002. Other income
declined $4.5 million primarily due to lower gains recorded on the sales of
non-operating properties compared to the third quarter of 2002.
Third quarter 2003 revenues from the Company's principal operating subsidiary,
The Kansas City Southern Railway (KCSR) were $144.9 million compared to $137.6
million for third quarter of 2002, a $7.3 million (5%) increase. Agriculture &
minerals revenues increased by $3.5 million, with strong gains in export
grain, food products, and ores and minerals. Paper & forest products revenues
grew $2.8 million, attributable to a 12% increase in pulp and paper revenues,
and a 17% gain in lumber revenues. Chemical & petroleum products revenues
declined $1.8 million quarter-to-quarter attributable to a $2.1 million
decline in its plastics business which was due in part to the continued high
price of natural gas. Coal revenues declined $0.8 million coming off record
volume levels in 2002. Intermodal & automotive revenues were relatively
unchanged versus corresponding 2002.
Third quarter 2003 KCSR expenses decreased $3.1 million (2%) compared with
third quarter of 2002 primarily due to lower car hire ($2.8 million) and
compensation ($2.2 million) expenses. KCSR casualty and insurance costs
increased $2.3 million, and fuel costs increased by $2.2 million attributable
to a 19% increase in the average price per gallon. KCSR's third quarter of
2003 operating ratio was 87.5% compared with 94.3% for the comparable 2002
period.
The Company's equity in earnings from Grupo TFM decreased approximately $8.2
million quarter-to-quarter. Grupo TFM's third quarter revenues increased $2.9
million (2%) from third quarter of 2002. Operating income decreased $4.6
million quarter-to-quarter. As calculated under U.S. GAAP, Grupo TFM's
operating expenses increased approximately $7.5 million, primarily due to
higher car hire, fuel, and purchased services expenses. 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 $432.8 million for the first nine months of
2003 improved by $10.8 million over the prior year's nine-month period, a 3%
increase. Consolidated operating income was $35.9 million, compared with $34.1
million for the 2002 period. KCS's other income for the first nine months of
2003 was $4.8 million, $10.5 million less than comparable 2002, due to a
decline on sales of non-operating property. In the first nine months of 2002,
the Company recorded a charge of $4.3 million related to debt retirement
costs, and a gain of $4.4 million related to the sale to Grupo TFM of the
Company's ownership interest in Mexrail. Consolidated year-to-date interest
expense increased $1.5 million (5%) from the same prior year period as a
result of higher interest rates caused by a shift to fixed-rate debt.
Year-to-date 2003 revenues for KCSR were $428.3 million, an increase of $11.4
million (3%) from the previous year's nine-month period. KCSR's year-to-date
2003 costs and expenses were $9.1 million higher compared to the prior year
primarily due to increased fuel ($7.5 million), purchased services ($4.3
million), and casualty and
insurance ($2.8 million) expenses. Partially offsetting these increases was a
$6.4 million reduction in car hire expense over the corresponding 2002 period.
The Company's equity in earnings from Grupo TFM for the nine-month period
ended September 30, 2003, decreased by approximately $21.4 million, in part
caused by a period to period reduction of $18.4 million related to deferred
tax benefits (calculated under U.S. GAAP) recorded by Grupo TFM. Also
affecting the nine-month period was a $9.0 million decrease in Grupo TFM
revenues, an $11.6 million increase in fuel costs, and a $7.7 million
reduction in deferred employee profit sharing credits.
COMMENTS FROM THE CHAIRMAN
Michael R. Haverty, KCS's Chairman, President and Chief Executive Officer
stated, "We are encouraged with KCSR's improved operating performance during
the third quarter. Train velocity and on-time performance statistics rank KCSR
at the forefront of the rail industry, which is a tribute to both KCSR's
operating personnel and to the substantial benefits achieved through the
integration of MCS, the new computer operating platform, throughout the KCSR
system.
"We are also cautiously optimistic that KCSR's 5% percent revenue growth
during the quarter is indicative of a strengthening economy and that it can
continue to experience top line growth, especially in 2004. A combination of
revenue growth and stringent cost controls resulted in KCSR operating income
more than doubling over the previous year's quarter, an acceptable achievement
given a 25% increase in fuel costs, and continued high natural gas prices that
affected plastics commodity group shipments.
"While Grupo TFM results were not as strong as we have experienced in so many
past quarters, we were encouraged that its third quarter of 2003 revenues
increased over the corresponding 2002 period, another sign that the North
American economy may be gaining strength. We look forward to continued revenue
growth at Grupo TFM along with a strong commitment by TFM management to
control operating expenses.
"The ruling of the Court of Chancery of the State of Delaware granting KCS's
motion seeking a preliminary injunction preserves the status quo pending
resolution of our dispute with Grupo TMM, S.A. (TMM). KCS remains committed to
pursuing NAFTA Rail and will continue to aggressively pursue the integration
of the three rail franchises.
"During the second quarter of 2003, we saw signs of an improving economy as,
simultaneously, our U.S. rail operations were improving. Both of these trends
continued during the third quarter, which gives rise to expectations that 2004
may very well be an improved year for KCS."
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 NINE MONTHS
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
------------------------- ------------------------
2003 2002 2003 2002
--------- ----------- ---------- ---------
REVENUES $ 146.3 $ 138.9 $ 432.8 $ 422.0
Costs and expenses 115.2 116.9 348.8 342.6
Depreciation and amortization 16.2 15.8 48.1 45.3
--------- ----------- ---------- ---------
OPERATING INCOME 14.9 6.2 35.9 34.1
Equity in net earnings (losses) of unconsolidated
affiliates:
Grupo Transportacion Ferroviaria Mexicana, S.A.
de C.V. (PRELIMINARY) 1.6 9.8 6.2 27.6
Other (0.9) (0.7) (1.0) (1.9)
Gain on sale of Mexrail, Inc. - - - 4.4
Interest expense (11.6) (11.5) (34.8) (33.3)
Debt retirement costs - - - (4.3)
Other income 2.0 6.5 4.8 15.3
--------- ----------- ---------- ---------
INCOME BEFORE INCOME TAXES AND
CUMULATIVE EFFECT OF ACCOUNTING CHANGE 6.0 10.3 11.1 41.9
Income tax provision (benefit) 1.7 (0.3) 2.6 5.1
--------- ----------- ---------- ---------
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING
CHANGE 4.3 10.6 8.5 36.8
Cumulative effect of accounting change, net of
income taxes - - 8.9 -
--------- ----------- ---------- ---------
NET INCOME $ 4.3 $ 10.6 $ 17.4 $ 36.8
PREFERRED STOCK DIVIDENDS 3.3 0.1 4.7 0.2
--------- ----------- ---------- ---------
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 1.0 $ 10.5 $ 12.7 $ 36.6
========= =========== ========== =========
PER SHARE DATA:
Basic Weighted Average Common shares outstanding
(IN THOUSANDS) 61,765 60,481 61,607 60,123
Basic Earnings per Common share
Income before cumulative effect of
accounting change $ 0.02 $ 0.17 $ 0.06 $ 0.61
Cumulative effect of accounting change - - 0.15 -
--------- ----------- ---------- ---------
Net income $ 0.02 $ 0.17 $ 0.21 $ 0.61
Diluted Weighted Average Common shares
OUTSTANDING (IN THOUSANDS) 63,143 62,453 62,998 62,213
Diluted Earnings per Common share
Income before cumulative effect of
accounting change $ 0.02 0.17 0.06 0.59
Cumulative effect of accounting change - - 0.14 -
--------- ----------- ---------- ---------
Net income $ 0.02 $ 0.17 $ 0.20 $ 0.59
GRUPO TRANSPORTACION FERROVIARIA MEXICANA
CONSOLIDATED INCOME STATEMENT - UNAUDITED
U.S. GAAP BASIS
($ IN THOUSANDS)
THIRD QTR ENDED SEPTEMBER 30, YEAR TO DATE SEPTEMBER 30,
----------------------------- --------------------------
2003 2002 2003 2002
---- ---- ---- ----
OPERATING REVENUE $ 178,247 $ 175,304 $ 523,365 $ 532,402
OPERATING EXPENSES 139,691 132,059 420,214 398,709
-------------------------------- ----------------------------
OPERATING PROFIT 38,556 43,245 103,151 133,693
INTEREST EXPENSE (27,785) (27,130) (83,403) 67,374)
EXCHANGE GAIN/(LOSS) (7,168) (3,085) (10,119) (14,397)
OTHER INCOME (EXPENSE) (15,972) (2,339) (23,121) (6,742)
-------------------------------- ----------------------------
PRE TAX INCOME (12,369) 10,691 (13,492) 45,180
INCOME TAX PROVISION (BENEFIT) (16,263) (9,937) (30,395) (48,827)
-------------------------------- ----------------------------
INCOME BEFORE MINORITY INTEREST 3,894 20,628 16,903 94,007
MINORITY INTEREST (691) (4,143) (3,395) (18,571)
-------------------------------- ----------------------------
NET INCOME $ 3,203 $ 16,485 $ 13,508 $ 75,436
================================ ============================
U.S. GAAP OPERATING RATIO 78.37% 75.33% 80.29% 74.89%
-------------------------------- ----------------------------
KCS EQUITY IN NET EARNINGS OF GRUPO TFM $ 1,656 $ 9,841 $ 6,454 $ 27,594
LESS: ALLOCATION OF INTEREST (3,864) (3,819) (11,583) (10,865)
ADJUSTED CONTRIBUTION TO NET INCOME OF KCS1 $ (2,208) $ 6,022 $ (5,129) $ 16,729
1 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 U.S. 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
THIRD QUARTER THIRD QUARTER YEAR TO DATE YEAR TO DATE
2003 2002 2003 2002
----------------- ---------------- ----------------- ----------------
Revenues
Freight Revenue $ 93.7 $ 88.2 $ 278.8 $ 266.8
Intermodal and Automotive
Revenue 15.3 15.5 43.7 46.3
Unit Coal Revenue 23.0 23.7 68.5 72.9
Haulage Revenue 2.7 2.5 7.9 7.5
Other Revenue 11.6 9.0 33.9 28.5
----------------- ---------------- ----------------- ----------------
Total Revenues 146.3 138.9 432.8 422.0
----------------- ---------------- ----------------- ----------------
Operating Expenses
Compensation 34.0 36.1 101.6 102.6
Fringe Benefits 14.4 15.1 44.8 44.5
Fuel 11.2 8.9 35.3 27.7
Material and Supplies 6.7 6.1 21.3 22.3
Car Hire 2.8 5.6 8.5 14.9
Purchased Services 15.8 15.6 46.1 43.5
Casualties & Insurance 9.7 6.9 26.2 22.0
Other 1.9 4.8 10.5 12.0
----------------- ---------------- ----------------- ----------------
Net Operating Expenses 96.5 99.1 294.3 289.5
----------------- ---------------- ----------------- ----------------
Fixed Expenses
Leases, Net 14.9 13.8 43.4 41.1
Depreciation 16.2 15.8 48.1 45.3
Taxes (Other Than Income) 3.8 4.0 11.1 12.0
----------------- ---------------- ----------------- ----------------
Total Fixed Expenses 34.9 33.6 102.6 98.4
----------------- ---------------- ----------------- ----------------
Total Expenses 131.4 132.7 396.9 387.9
----------------- ---------------- ----------------- ----------------
Operating Income $ 14.9 $ 6.2 $ 35.9 $ 34.1
================= ================ ================= ================
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 SEPTEMBER 30, 2003
DOLLARS IN THOUSANDS
CARLOADINGS REVENUE
Year to Date % Year to Date %
------------------------- -----------------------
2003 2002 Change 2003 2002 Change
------------ ---------- ------- ---------- ---------- -------
COAL
139,117 152,203 (8.6)% Unit Coal $ 68,550 $ 72,907 (6.0)%
2,375 3,153 (24.7)% Other Coal 1,318 1,748 (24.6)%
------------ ---------- ---------- ----------
141,492 155,356 (8.9)% Total 69,868 74,655 (6.4)%
------------ ---------- ---------- ----------
CHEMICAL & PETROLEUM PRODUCTS
4,288 4,404 (2.6)% Agri Chemicals 2,854 3,173 (10.1)%
11,116 10,671 4.2% Gases 11,001 10,469 5.1%
16,560 16,839 (1.7)% Organic 17,510 17,474 0.2%
16,491 15,153 8.8% Inorganic 17,160 16,296 5.3%
41,276 40,252 2.5% Petroleum 27,961 28,963 (3.5)%
14,672 21,980 (33.2)% Plastics 15,944 21,758 (26.7)%
------------ ---------- ---------- ----------
104,403 109,299 (4.5)% Total 92,430 98,133 (5.8)%
------------ ---------- ---------- ----------
AGRICULTURE AND MINERALS
32,872 34,641 (5.1)% Domestic Grain 26,732 26,888 (0.6)%
13,220 9,782 35.1% Export Grain 10,524 8,055 30.7%
24,943 20,762 20.1% Food Products 20,224 17,778 13.8%
19,114 16,399 16.6% Ores and Minerals 10,939 9,233 18.5%
12,360 11,924 3.7% Stone, Clay & Glass 9,576 9,188 4.2%
------------ ---------- ---------- ----------
102,509 93,508 9.6% Total 77,995 71,142 9.6%
------------ ---------- ---------- ----------
PAPER & FOREST PRODUCTS
70,839 65,608 8.0% Pulp/Paper 56,164 49,698 13.0%
5,184 4,597 12.8% Scrap Paper 3,214 2,708 18.7%
22,751 24,424 (6.8)% Pulpwood/Logchips 10,423 10,112 3.1%
22,861 20,869 9.5% Lumber/Plywood 22,153 19,183 15.5%
13,582 13,904 (2.3)% Metal/Scrap 11,640 11,487 1.3%
4,725 5,425 (12.9)% Military/Other Carloads 6,154 7,569 (18.7)%
------------ ---------- ---------- ----------
139,942 134,827 3.8% Total 109,748 100,757 8.9%
------------ ---------- ---------- ----------
INTERMODAL & AUTOMOTIVE
5,225 11,177 (53.3)% Automotive 4,137 7,800 (47.0)%
224,307 211,395 6.1% Intermodal 39,559 38,531 2.7%
------------ ---------- ---------- ----------
229,532 222,572 3.1% Total 43,696 46,331 (5.7)%
------------ ---------- ---------- ----------
717,878 715,562 0.3% TOTAL FOR BUSINESS UNITS 393,737 391,018 0.7%
27,106 17,698 53.2% HAULAGE 7,944 7,545 5.3%
(2,809) (4,934) 43.1% Adjustments (1,025) (3,815) 73.1%
------------ ---------- ---------- ----------
742,175 728,326 1.9% TOTAL $ 400,656 $ 394,748 1.5%
============ ========== ========== ==========
NOTE:
CERTAIN PRIOR YEAR AMOUNTS HAVE BEEN RECLASSIFIED TO CONFORM TO THE CURRENT YEAR
PRESENTATION.
KANSAS CITY SOUTHERN RAILWAY
CARLOADINGS BY COMMODITY - THIRD QUARTER 2003
DOLLARS IN THOUSANDS
CARLOADINGS REVENUE
Third Quarter % Third Quarter %
------------------------- -----------------------
2003 2002 Change 2003 2002 Change
------------ ---------- ------- ---------- ---------- -------
Coal
47,751 49,108 (2.8)% Unit Coal $ 23,049 $ 23,701 (2.8)%
847 1,141 (25.8)% Other Coal 505 666 (24.2)%
------------ ---------- ---------- ----------
48,598 50,249 (3.3)% Total 23,554 24,367 (3.3)%
------------ ---------- ---------- ----------
CHEMICAL & PETROLEUM PRODUCTS
1,455 1,191 22.2% Agri Chemicals 971 836 16.1%
3,637 3,843 (5.4)% Gases 3,642 3,762 (3.2)%
5,802 5,447 6.5% Organic 6,146 5,944 3.4%
5,305 4,917 7.9% Inorganic 5,500 5,431 1.3%
13,537 13,099 3.3% Petroleum 9,332 9,309 0.2%
4,363 7,101 (38.6)% Plastics 5,045 7,179 (29.7)%
------------ ---------- ---------- ----------
34,099 35,598 (4.2)% Total 30,636 32,461 (5.6)%
------------ ---------- ---------- ----------
AGRICULTURE AND MINERALS
9,644 10,376 (7.1)% Domestic Grain 7,854 8,244 (4.7)%
4,993 2,336 113.7% Export Grain 3,914 1,808 116.5%
8,367 6,907 21.1% Food Products 6,843 5,910 15.8%
6,424 5,352 20.0% Ores and Minerals 3,707 3,052 21.5%
4,372 4,123 6.0% Stone, Clay & Glass 3,320 3,154 5.3%
------------ ---------- ---------- ----------
33,800 29,094 16.2% Total 25,638 22,168 15.7%
------------ ---------- ---------- ----------
PAPER & FOREST PRODUCTS
24,439 22,979 6.4% Pulp/Paper 19,853 17,732 12.0%
1,797 1,671 7.5% Scrap Paper 1,115 978 14.0%
7,503 7,320 2.5% Pulpwood/Logs/Chips 3,424 3,151 8.7%
7,950 7,103 11.9% Lumber/Plywood 7,670 6,577 16.6%
4,544 4,960 (8.4)% Metal/Scrap 4,037 3,945 2.3%
1,459 1,926 (24.2)% Military/Other carloads 1,363 2,294 (40.6)%
------------ ---------- ---------- ----------
47,692 45,959 3.8% Total 37,462 34,677 8.0%
------------ ---------- ---------- ----------
INTERMODAL & AUTOMOTIVE
2,080 1,696 22.6% Automotive 1,524 1,472 3.5%
77,799 77,182 0.8% Intermodal 13,744 14,021 (2.0)%
------------ ---------- ---------- ----------
79,879 78,878 1.3% Total 15,268 15,493 (1.5)%
------------ ---------- ---------- ----------
244,068 239,778 1.8% TOTAL FOR BUSINESS UNITS 132,558 129,166 2.6%
9,240 4,993 85.1% HAULAGE 2,746 2,583 6.3%
(1,074) (1,411) 23.9% Adjustments - (1,275) 100.0%
------------ ---------- ---------- ----------
252,234 243,360 3.6% TOTAL $ 135,304 $ 130,474 3.7%
============ ========== ========== ==========
NOTE:
CERTAIN PRIOR YEAR AMOUNTS HAVE BEEN RECLASSIFIED TO CONFORM TO THE CURRENT YEAR
PRESENTATION.
KANSAS CITY SOUTHERN ---------------------
CONSOLIDATED BALANCE SHEETS PRELIMINARY
(DOLLARS IN MILLIONS) ---------------------
SEPTEMBER 30, 2003 DECEMBER 31, 2002
------------------ -----------------
(UNAUDITED)
ASSETS
Cash $ 227.4 $ 19.0
Accounts receivable 113.0 118.5
Inventories 36.2 34.2
Other current assets 18.0 44.5
--------------------- ---------------------
Total current assets 394.6 216.2
Investments 433.8 423.1
Properties, net of depreciation 1,348.9 1,337.4
Other assets 37.9 32.1
--------------------- ---------------------
Total assets $ 2,215.2 $ 2,008.8
===================== =====================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt $ 10.0 $ 10.0
Accounts payable 43.8 47.7
Accrued liabilities 139.7 128.6
--------------------- ---------------------
Total current liabilities 193.5 186.3
Long-term debt 568.7 572.6
Deferred income taxes 393.9 392.8
Other 92.9 104.2
Stockholders' equity 966.2 752.9
--------------------- ---------------------
Total liabilities and stockholders' equity $ 2,215.2 $ 2,008.8
===================== =====================