December 2022 Amtrak Financial Report
The December Report was dated January 31, 2023 and posted February 2, 2023.
The NEC generated year to date a cash operating surplus of $49.2 million (as determined by their accounting system) and the remainder of the system had an operating cash loss of $136.2 million. Combined the entire system had a cash operating deficit of $87.0million.
Year to date, the NEC made debt service payments totaling $97.5 million and capital expenditures of $311.0 million. Counting all capital sources, the NEC Account had a negative balance of $48.3 million. Amtrak also has cash reserves remaining from previous years.
The rest of the National System needed $6.1 million for Debt service and $234.3 million for Capital Expenditures. The National Network Account Balance is now a negative balance of $238.4 million. Amtrak has the accumulated surplus from previous years.
Appropriated money for the combined NEC and National Network received year to date was $159.4 million. Amtrak also received $339.343 million for the entire system rom other capital sources.
The accumulated reserves at the beginning of the 2023 fiscal year totaled $299.1 million in cash and cash equivalents, $123.9 million in short term investments, and $2.9 billion in available for sale securities. The total cash reserves as of October 1, 2022 is $3.3 billion. The current ratio (Current Assets divided by Current Liabilities) was 1.894 which would make Amtrak quite credit worthy for any fresh borrowings even though it is slightly down from last year.
Amtrak’s burn rate (Operating Revenues-Minus Operating Expense-Minus Debt Service-Capital Expenditures) was $210.269 million in October 2022, the November burn rate was $318.8 million, and the December burn rate was $256.4 million.
Capital Spending for the year to date is: Infrastructure Services (formerly known as Engineering) $220.5 million, Mechanical $73.3 million, Operations $2.6 million, Digital Technology $58.6 million, Commercial and Marketing $0.0, ADA $28.8 million, Real Estate Stations & Facilities $32.6 million, Amtrak Police & Emergency Management $2.3 million, Safety $13.1 million, Environmental $0.0 million, Procurement $0.9 million, Acela 21 $26.0 million, Gateway $44.3 million, Planning & Strategy $18.4 million, B&P Tunnel $13.6 million, and Intercity Trainsets $12.1 million. The total was $545.3 million which is $85.9 million more than the same period last year. Capital Spending is noticeably increased during the month of December.
The GAAP Loss for the year to date is $383.0 million, which is $4.9 million worse than FY2022. The cash operating earnings for the year was $14.5 million better than in FY2022.
Cash operating earnings, the corporation is $17.3 million ahead of its forecast. The GAAP figure is $11.7 million better than the forecast.
The number of product lines showing a measurable operating surplus for the period was eight. The three with a surplus over $1 million were:
Northeast Regional $51.5 million
Acela $38.4 million
Auto Train $4.2 million
The four Virginia product lines generated a total loss of $7.7 million.
Amtrak is showing costs based as Frequency Variable Costs, Route Variable Costs, and System Fixed Costs. Most trains covered their Frequency Variable Costs with the exception of the Silver Star, Coast Starlight, Sunset, Southwest Chief, California Zephyr, Empire Builder, Texas Eagle, City of New Orleans, Lake Shore, and the Cardinal. Most likely the constrained consists from Amtrak mismanagement of its personnel and equipment repairs contributed to these trains not meeting their Frequency Variable Costs. There are reports of four cars or less for the Texas Eagle, Southwest Chief and Capitol, Ltd. on various occasions. In one case, a sleeper on the Lake Shore needed some minor repairs, but Chicago Maintenance said that it was Boston Maintenance’s responsibility. So the passengers who would have been in that sleeper were put into coach, and the difference was refunded to them. To compound the situation, that sleeper was carried on the same train as the dispossessed passengers.
Ridership for the Fiscal Year to date rose more than 1,421,400 from FY2022. For the year, it stands at 6,951.400 (Amtrak reports ridership to the nearest 100). The total number of riders in November was 2, 337.500. The situation with the long-distance trains shows a gain of riders across the product lines with the obvious exception of the Silver Meteor and the Cardinal. The City of New Orleans was the biggest winner at +33.4% gain in the new fiscal year to date, and the Sunset was second at a 27.2% gain. The lines that showed smallest ridership gains after the Silver Meteor which lost 16.6%, are the Cardinal with a loss of 8.5%, The Capitol. Ltd at +1.2%, and The Acela gained 52.2%.
The Pawtucket/Central Falls MBTA Station opened in grand fashion on Monday, January 23, 2023. By Thursday, ridership was over 400 riders. It appears that the station will exceed its initial planning goal of 520 boarding. The good frequency of 20 trains a weekday in each direction, free parking, and a bus hub created next to the station are helping considerably. Additional parking is being planned to serve the bus passengers.
President Biden has announced additional funding (from the Mega Projects) towards the first phase of the new B&P Tunnel Replacement in Baltimore, and the Concrete Casing (3rd Phase) under the Hudson Yards in New York City. Why the Concrete Casing was not completed years ago, is pretty shameful as Amtrak waited for additional specific funds to be authorized before beginning actual construction. This is at a time when Anderson was squirreling away all the excess funds that Congress was appropriating. The cost of the project has risen from $400 million to $600 million. The project is needed as part of the new Hudson River Tubes. The B&P EIS was completed over 4 years ago and could have been started earlier. Both the Hudson Tubes and B&P Tunnel Replacement will take the rest of the decade to complete if no delays are incurred.
Steve Musen, Representative from Rhode Island to Narp’s Council of Representatives