January 2023 Amtrak Financial Report

• The January Report was dated February 28, 2023, and posted around March 15, 2023.

• The NEC generated for the year to date, a cash operating surplus of $63.6 million (as determined by their accounting system) and the remainder of the system had an operating cash loss of $306.4 million. Combined, the entire system had for the period a cash operating deficit of $242.8 million.

• Year to date, the NEC made debt service payments totaling $97.6 million and capital expenditures of $412.1 million. Counting all capital sources, the NEC Account had a negative balance of $65.161 million. But it has the cash reserves remaining from previous years.

• For the rest of the National System, $6.1 million was needed for Debt service and $298.6 million was spent on Capital Expenditures. The National Network Account Balance now has a negative balance of $327.8 million. It also has the accumulated surplus from previous years. 

• The appropriated money for the combined NEC and National Network received for the year to date was $229.3 million. Amtrak has also received from other capital sources $435.0 million for the entire system.

• The combined 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, to $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.

• 6. In October 2022 Amtrak’s burn rate (Operating Revenues-Minus Operating Expense-Minus Debt Service-Capital Expenditures) was $210.3 million, November the burn rate was $318.8 million, December the burn rate was $256.4 million, and January the burn rate was $271.7 million.

• Capital Spending for the year to date was: Infrastructure Services (formerly Engineering) $288.5 million, Mechanical $103.2 million, Operations $3.0 million, Digital Technology $81.6 million, Commercial and Marketing $0.0, ADA $36.7 million, Real Estate Stations & Facilities $40.9 million, Amtrak Police & Emergency Management $3.2 million, Safety $7.0 million, Environmental $0.7. million, Procurement $1.0 million, Acela 21 $37.7 million, Gateway $52.0 million, Planning & Strategy $23.5 million, B&P Tunnel $19.2 million, and Intercity Trainsets $14.4 million. The total was $710.8 million which is $79.5 million more than the same period last year.

• The GAAP Loss for the year so far appears to be $576.9 million which is $1.5 million better than FY2022.  The cash operating earnings for the year was $29.1 million better than in FY2022.

• For cash operating earnings, the corporation is $19.1 million ahead of it Forecast. The GAAP figure is $49.0 million worse than the Forecast.

• The number of product lines showing a measurable operating surplus for the period was 4. The three with a surplus over $1 million were:

  • Northeast Regional $41.7 million

  • Acela $36.2 million

  • Auto Train $5.9 million

• The Hoosier State (which has not run for several years) is shown as profitable to the tune of $0.9 million.

• The four Virginia product lines generated a total loss of $11.9 million.

• Amtrak is now 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, Capitol, Ltd. 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 have been reports of four car or less Texas Eagle, Southwest Chief and Capitol, Ltd. on various occasions.

• Ridership for the Fiscal Year to date rose more than 2,194,100 from FY2022. For the year, it stands at 8,837.000 (Amtrak reports ridership to the nearest 100). The total number of riders in January was 1,885,600. The situation with the long-distance trains shows a gain of riders across the product lines with the obvious exception of the Silver Meteor. The City of New Orleans was the biggest winner at +36.7% gain in the new fiscal year, The Sunset was second at 30.5% gain. The lines that showed smallest ridership gains after the Silver Meteor which lost 2.0%, the Cardinal with a gain of 0.3%, and The Capitol. Ltd at +2.0%. The Acela gained 64.1%.

• Amtrak released its 2024 Legislative Request. While advocating for the full authorized amount, it wants the share going to the NEC to be increased at the expense of the remaining system. It claims that Acela Ridership is off of previous levels.

• The amount of appropriated funds Amtrak has actually received is much less than expected. This is probably due to the late signing of the omnibus bill and the quantitative easing of accounts to delay the Federal Government from exceeding the debt level.

• Traditional Dining has been extended to coach passengers on the Sunset, Chief, Zephyr, Builder and Starlight. Traditional Dining for sleeping car passengers is scheduled in April for the Silver Star.

• The Adirondack will return to Montreal on April 3, 2023. Unfortunately, all passengers crossing the US/Canadian Border in both directions will need to debark with all of their luggage at the border and the time at the border and Montreal will be excruciatingly slow.

Steve Musen