Florida East Coast Industries Inc
Florida East Coast Industries — Q1 2007 Earnings Presentation
26 slides from Florida East Coast Industries's earnings presentation, May 9, 2007
Slide 1: First Quarter Earnings Review
Florida East Coast Industries, Inc. First Quarter Earnings Review May 9, Exhibit 99.1
Slide 2: Florida East Coast Industries: A Florida Railroad and Real Estate Company
RAILROAD REAL ESTATE Florida East Coast Industries A Florida Railroad and Real Estate Company Regional freight railroad that operates 351 miles of main line track with the most direct route from Jacksonville to Miami and provides intermodal drayage services in the Southeast U.S. Real estate developm
Slide 3: Forward-Looking Statements
Florida East Coast Industries, Inc. Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward- looking statements incl
Slide 4: Adolfo Henriques, Chairman, President & CEO
Adolfo Henriques Chairman, President & CEO FLORIDA EAST COAST INDUSTRIES, INC.
Slide 5: FECI announced a definitive merger agreement with Fortress funds
• Yesterday, FECI announced it had entered into a definitive merger agreement with certain private equity funds managed by affiliates of Fortress Investment Group, LLC under which Fortress will acquire FECI FECI will pay a special dividend in the amount of $21.50 in cash In the merger FECI sharehold
Slide 6: Financial Review
Daniel H. Popky Chief Financial Officer FINANCIAL REVIEW
Slide 7: Flagler Development Group
FLAGLER DEVELOPMENT GROUP Flagler Center, Jacksonville
Slide 8: First Quarter Overview - Real Estate
First Quarter Overview First Quarter 2007 - Real Estate • Realty rental revenues increased 18% to $26.9 million • Realty rental operating profit increased 18% to $8.5 million • Realty rental operating profit before depreciation & amortization increased $2.1 million, or 14%, to $16.5 million • Overal
Slide 9: Flagler Rental & Services Revenue Growth
Q1 Operating Properties Q1 First Quarter - in Millions Flagler Rental & Services Revenue Growth $46.6 +98.3% $4.0 $23.5 Realty Services (1) $19.1 (1) Includes construction, brokerage, property management and development revenues
Slide 10: Flagler Realty Rental Revenue Growth
Q1 New in ’05/’06/’07 Q1 First Quarter - in Millions Flagler Realty Rental Revenue Growth $26.9 +17.6% $2.4 $22.9 Same Store $1.6
Slide 11: Flagler Realty Rental Operating Profit Before D&A Growth
Q1 Same Store New in ’05/’06/’07 Q1 First Quarter - in Millions $16.5 +14.0% $1.6 $0.5 $14.4 Flagler Realty Rental Operating Profit Before Depreciation & Amortization* Growth * See page 24 for reconciliation of non-GAAP measures.
Slide 12: Realty Segment Operating Profit
Realty Segment Operating Profit $16.8 $6.0 Realty Operating Profit (4.9) (8.1) (1) Land and Overhead 0.5 0.5 Railway Realty Rental 13.8 0.4 Realty Sales 0.2 4.7 Realty Services $7.2 $8.5 Realty Rental Operating Profit: Quarter Ended March 31 First Quarter - in Millions (1) Includes $1.5 million of r
Slide 13: 2007 Flagler Outlook
Full Year – In Millions 2007 Flagler Outlook Realty Rental Revenues Realty Rental Operating Profit before Depreciation & Amortization* (1) Excludes Hurricane recoveries, net of expenses, of $1.8 million in 2006 * See page 24 for reconciliation of non-GAAP measures 8 - 18% $97.4 $105-$115 Realty Rent
Slide 14: Flagler Capital Investments
Flagler Capital Investments * Excludes land acquisitions $27.0 $75.0 $80.0 $132.7 $90-$115 (in millions) $118.6 Forecast* Existing Operating Properties Infrastructure Investments in Joint Ventures Acquisition New Building Construction
Slide 15: Florida East Coast Railway
FLORIDA EAST COAST RAILWAY
Slide 16: First Quarter Overview - Railway
First Quarter Overview First Quarter 2007 – Railway • Revenues decreased 11% to $59.8 million from $67.1 million • Operating profit decreased $4.4 million to $14.4 million • Continued softness in housing and automobile markets impacted Carload volumes • Cost cutting initiatives implemented
Slide 17: Railway Revenue
Railway Revenue $67.1 $59.8 ($6.0) ($1.0) ($0.3) Q1 Carload Intermodal All Other Q1 First Quarter - in Millions - 16.3% - 1.2% - 46.6% -10.8%
Slide 18: Railway Revenue Detail
$59.8 ($0.3) $2.4 ($8.4) ($1.0) $67.1 Railway Revenue Detail Q1 Volume Rate & Mix Fuel Recovery Q1 First Quarter - in Millions -12.5% +3.6% -0.5% -10.8% Ancillary -1.4%
Slide 19: Railway Profit
$18.8 $14.4 $24.3 $20.1 Railway Profit Operating Profit Operating Profit before Depreciation* * See page 24 for reconciliation of non-GAAP measures 23.7% 17.6% First Quarter – In Millions
Slide 20: 2007 Railway Outlook
2007 Railway Outlook Revenues Operating Profit (1) Excludes Hurricane recoveries, net of expenses, of $5.3 million Full Year – In Millions Flat - 6% 2% Decrease to 4% Increase $264.1 $265-$280 $73.1 (1) $72-$76
Slide 21: Railway Capital Expenditures Outlook
Outlook $30 $27 $30 $39 (1) $42-$47 Maintenance capital Productivity & growth capital * (in millions) $45 Railway Capital Expenditures *Before the purchase of any strategic land parcels to be used for industrial development (1)Productivity and growth capital includes $5.1 million of land purchased f
Slide 22: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows 0.5 Proceeds from exercise of options - 0.1 Other - 0.4 Investment by minority interest - (1.7) Investments in joint ventures $107.9 $ 4.0 Cash and cash equivalents at end of period 76.0 5.1 Cash and cash equivalents at beginning of period 31.9 (1.1) N
Slide 23: Looking Forward
Looking Forward . • Florida economy remains strong • Strategic position provides strong competitive advantage • Railway management team focused on quickly adapting to customers’ shifting needs • Real estate team focused on capturing demand and maximizing property values through entitlement process
Slide 24: Reconciliation of Non-GAAP to GAAP Measures
Reconciliation of Non-GAAP to GAAP Measures $62.6 30.1 $32.5 $100.9 22.4 $78.5 $14.5 7.3 7.2 $24.3 5.5 $18.8 Q106 $16.5 8.0 8.5 $20.1 5.7 $14.4 Q107 $85.5 $67.5 $62.6 Railway Segment’s operating profit before depreciation $65-$69 $55.8 $44.8 $40.1 Realty rental properties’ operating profit before D&
Slide 25: Important Additional Information Will Be Filed with the SEC
Important Additional Information Will be Filed with the SEC Florida East Coast Industries plans to file with the SEC a proxy statement in connection with the transaction with Fortress. FECI shareholders are urged to read the proxy statement and other relevant materials when they become available bec
Slide 26: First Quarter 2007 Earnings Review
Florida East Coast Industries, Inc. First Quarter 2007 Earnings Review May 9,
Florida East Coast Industries — Q1 2007 Earnings Presentation on 6ix