Server: Microsoft-IIS/3.0 Date: Thu, 20 Nov 1997 16:08:27 GMT Content-Type: text/html Accept-Ranges: bytes Last-Modified: Sun, 21 Sep 1997 13:48:31 GMT Set-Cookie: EGSOFT_ID=128.2.206.74-2298860640.29160910; expires=Fri, 31-Dec-2010 00:00:00 GMT; path=/ Content-Length: 13670 RAILAMERICA

RAILAMERICA ANNOUNCES RECORD REVENUES AND INCOME FOR SECOND QUARTER OF 1996

HIGHLIGHTS

Boca Raton, FL -- August 8, 1996 -- RailAmerica, Inc. (NASDAQ: RAIL) today announced its financial results for the second quarter and six months ended June 30, 1996.

Revenues increased 18% for the 1996 second quarter to $9.4 million compared with $8.0 million for the second quarter of 1995. Net income increased 10% to $326,310, or $.07 per share on 5.7 million common shares and common share equivalents compared to $297,295, or $.06 per share on 6.2 million common shares and common share equivalents.

Revenues for the six month period ended June 30, 1996 increased 19% to $17.4 million compared with revenues of $14.7 million for the comparable 1995 period. Net income for the six month period decreased to $538,117 or $.12 per share on 5.7 million common shares and common share equivalents compared to $727,846 or $.14 per share on 6.2 million common shares and common share equivalents.

The Company also noted that its rail freight carloadings increased 20% for the second quarter of 1996 to 4,853 vs. 4,038 for the second quarter of 1995. For the first six months of 1996, carloadings increased 39% to 11,419 vs. 8,239 for the same period in 1995. The increases in carloadings for the second quarter and six month periods are primarily attributable to the inclusion of the results of the Company's two Texas railroads and its Minnesota railroad which were acquired during the second half of 1995.

The Company also stated that its working capital at June 30, 1996 had increased to $4.2 million from $3.0 million at fiscal year end 1995. Operating cash flow for the 1996 six month period increased 34% to $2.9 million from the $2.2 million achieved in the comparable 1995 six month period.

Gary O. Marino, President and CEO, stated, "We are pleased to note that our Company's performance during the second quarter represents a record for that quarter for RailAmerica. It exceeded our internal projections and reflects the strengthening of our business which, we believe, should continue throughout the second half of 1996. Our Kalyn/Siebert truck trailer manufacturing subsidiary has not yet begun production of the M129A4 twelve ton tactical semi-trailer van for the U.S. Army Tank Automotive Command (TACOM) in connection with its $27 million TACOM contract received last November. The prototype vehicles for the contract were produced and are being tested by the Army. Full production under that contract should begin during the latter part of this year.

"Our railroads continued to perform very well during the first half of 1996 and we expect that performance to continue. Railroad revenues and income should trend upward during the second half of the year. Moreover, our recent management realignment should enable RailAmerica to better implement its acquisition strategy as well as to enhance the performance of its existing operations."

RailAmerica, Inc. is a diversified, publicly-held, multi-modal transportation company with two business groups -- (1) transportation and distribution, and (2) manufacturing and financial services. The Company owns and develops short-line and regional freight railroads and operates eight railroads with approximately 500 miles of rail lines in Indiana, Michigan, Minnesota, Tennessee, Pennsylvania, Delaware and Texas. The Company also owns a third party logistics management services company, an intermodal services company, a transportation equipment and finance company, and a specialty regional motor carrier based in Sault Ste. Marie, Ontario, Canada. Also, through its subsidiary, Kalyn/Siebert, Inc., the Company manufactures a broad line of heavy duty specialty truck trailers marketed throughout the U.S., Mexico and Canada.

RAILAMERICA, INC.
SECOND QUARTER 1996 FINANCIAL HIGHLIGHTS
     
  For the Three Months Ended
  June 30
  1996 1995
     
Revenues $9,441,507 $7,993,106
Net Income $326,310 $297,295
Net Income Per Common Share and Dilutive Common Share Equivalents $0.07 $0.06
Wtd. Avg. Common Shares and Common Share Equivalents 5,665,998 6,233,270
     
     
  For the Six Months Ended
  June 30
  1996 1995
     
Revenues $17,377,076 $14,658,384
Net Income $538,117 $727,846
Net Income Per Common Share and Dilutive Common Share Equivalents $0.12 $0.14
Wtd. Avg. Common Shares and Common Share Equivalents 5,664,208 6,233,767
     
     
  Consolidated Balance Sheet
     
  June 30, 1996 December 31, 1995
     
Working Capital $4,154,301 $3,040,661
Total Assets $43,101,995 $40,063,962
Stockholders' Equity $9,665,600 $9,148,659
Common Shares Outstanding 4,652,910 4,658,991