Summary
Norfolk Southern Corporation (NSC) filed an 8-K on January 26, 2005, to announce its fourth quarter and full-year 2004 financial results. The report highlights the use of non-GAAP financial measures to provide a clearer comparison of operational performance by excluding certain one-time charges and gains. Specifically, the company adjusted 2003 fourth-quarter net income by removing costs associated with a voluntary separation program and an asset impairment charge. Furthermore, for year-end comparisons, 2004 net income excludes a noncash gain from the Conrail corporate reorganization that occurred in the third quarter. Management believes these adjusted figures offer a more indicative view of ongoing operational results and are intended for use in future comparisons and at analyst meetings. Investors should pay close attention to these adjustments when evaluating the company's performance trends and comparing them to industry peers.
Key Highlights
- 1NSC announced its Q4 and full-year 2004 financial results on January 26, 2005.
- 2The company utilized non-GAAP financial measures in its earnings release, as permitted by SEC Regulation G.
- 3Adjustments were made to exclude costs from a voluntary separation program and an asset impairment charge in Q4 2003.
- 4A noncash gain from the Conrail corporate reorganization in Q3 2004 was excluded from full-year 2004 net income for comparative purposes.
- 5Management believes these non-GAAP measures provide a better indication of operating results for comparison to future periods and other companies.
- 6These adjusted financial metrics will be discussed at NSC's analyst meeting scheduled for January 26, 2005.