Railamerica (NYSE:RRA)
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From Jun 2019 to Jun 2024
RailAmerica, Inc. (NYSE:RRA), announced today that it
will transfer ownership of the right of way corridors of the 181-mile
E&N Railway to the Island Corridor Foundation on Friday, March 24,
2006. The Island Corridor Foundation is a non-profit organization
which anticipates using the railroad for passenger service. The Island
Corridor Foundation is managed by 13 First Nations Groups and 6
municipalities on Vancouver Island. RailAmerica will receive
approximately 850,000 ($1 million CAD) in cash and a promissory note
for approximately $300,000 ($350,000 CAD) from the sale of contract
and regulatory rights associated with the rail operation. RailAmerica
anticipates being able to utilize approximately $4.3 million ($5
million CAD) in tax benefits in Canada from the charitable gift
donation.
A transition agreement between the parties provides that
RailAmerica's subsidiary, E&N Railway, will continue to operate the
railroad until operations are transferred to a new railway operator,
on or before June 30, 2006.
RailAmerica recognized a $12.6 million pre-tax or ($8.7 million
after-tax) impairment charge in the third quarter of 2004 at which
time it announced plans to dispose of the railroad. This transaction
will have no material impact on RailAmerica's 2006 financial results.
RailAmerica, Inc. (NYSE:RRA) is a leading short line and regional
rail service provider with 42 railroads operating approximately 7,800
miles in the United States and Canada. The Company is a member of the
Russell 2000(R) Index. Its website may be found at
http://www.railamerica.com.
DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS: This press
release contains forward-looking statements regarding future events
that involve risks and uncertainties that could cause actual results
to differ materially. Forward-looking statements speak only as of the
date the statement was made. The Company assumes no obligation to
update forward-looking information to reflect actual results, changes
in assumptions or changes in other factors affecting forward-looking
information. If the Company does update any forward-looking statement,
no inference should be drawn that the Company will make additional
updates with respect to that statement or any other forward-looking
statements. We refer you to the documents that RailAmerica files from
time to time with the Securities and Exchange Commission, such as the
Form 10-K, Form 10-Q and Form 8-K, which contain additional important
factors that could cause its actual results to differ from its current
expectations and from the forward-looking statements contained in this
press release.