Financial Analysis

RII is skilled at the special financial analyses related to railroads. RII has the experience to assess performance, optimize costs and revenues, see between the lines on financial statements from one company to another, identify trends, concerns and opportunities.

+Revenue projections based on carloads, shipper facilities and capacities, commodities and growth in those industries, individual shipper plans+Detailed operations analysis for costing, profitability, operating margins, capital cost recovery, inflation and rail cost adjustment factors+Pro forma financial statements for prospective and projected operations for short or long term+Rate analysis for revenue to cost ratios, rate escalation and sensitivity, and testing rates for affects on overall revenueIncome valuations, Going Concern, Net Present Values, Discounted +Cash Flows, Internal Rates of Return and EBITDA projections+Review of Financial Statements for transparency, concerns, performance measurements and condition+Commodity and service demand forecasting based on end uses+Analysis operations of a railroad, a specific facility or combined financial picture of multiple facilities

Projects

Central Utah Short Line Analysis
This project entailed modeling the operation of a new prospective rail line to be constructed for 44 miles through central Utah, connecting several shippers to direct rail access, including a large coal mine. Financial modeling examined the profitability and return on investment for 6 different operational scenarios for the line, including fully private ownership, fully public ownership and a combination of public-private partnership, as well as the costs using Union Pacific locomotives versus using short line owned locomotives. Each scenario implemented the differences in costs, expected internal rates of return and return on initial investment to compare the benefits and costs. RII developed the traffic independently through interviews with each potential shipper and model the operational costs with its proprietary short line railroad costing model. Pro forma financial statements projected for the next 10 years were developed for each scenario, including personnel and labor detail, balance sheets and profit and loss, detailed equipment and right of way maintenance and transportation costs.
Delta Southern Railroad Going Concern Value with Revenue Projections
This project analyzed the benefits of reopening a portion of the line, allowing traffic from the Port of Providence to flow southward on the Delta Southern Railroad. The project analyzed the traffic that would likely move southward more economically and then developed the carload and revenue projections for the next 10 years. The revenue was measured against the operational costs and capital costs to determine the internal rate of return and profitability. The traffic and revenue projections included additional traffic that could then move northward over the newly opened portion from Delta Southern connecting branch at Monroe, making those moves more economical.