February 2023 Amtrak Financial Report

• The February Report was dated March 31, 2023, and posted on April 4, 2023.

• The NEC generated for the year to date, a cash operating surplus of $55.2 million (as determined by their accounting system), and the remainder of the system had an operating cash loss of $391.0 million. Combined, the entire system had for the period a cash operating deficit of $335.6 million.

• Year to date, the NEC made debt service payments totaling $97.6 million and capital expenditures of $527.3 million.  Counting all capital sources, the NEC Account had a negative balance of $44.0 million; and also has cash reserves remaining from previous years.

• For the rest of the National System, $6.1 million was needed for Debt service, and $385.8 million was spent on Capital Expenditures. The National Network Account Balance now has a negative balance of $164.4 million and also has the accumulated surplus from previous years. 

• The amount of appropriated money for the combined NEC and National Network received year to date was $841.9 million. Amtrak has also received from other capital sources $302.2 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, making Amtrak quite creditworthy 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) for October 2022 was $210.269 million, November’s burn rate was $318.8 million, December’s burn rate was $256.4 million, January’s burn rate was $271.7 million, and February’s burn rate was $295.2 million.

• Capital Spending for the year to date was: Infrastructure Service $389.8 million, Mechanical $130.0 million, Operations $3.5 million, Digital Technology $110.9 million, Commercial and Marketing $0, ADA $45.9 million, Real Estate Stations & Facilities $20.4 million, Amtrak Police & Emergency Management $3.9 million, Safety $2.6 million, Environmental $0.8 million, Procurement $1.2 million, Acela 21 $50.7 million, Gateway $77.3 million, Planning & Strategy $34.2 million, B&P Tunnel $27.2 million, and Intercity Trainsets $16.3 million. The total was $913.1 million, which is $162.0 million more than the same period last year.

• The figure that stands out the most is the vast amount spent on Digital Technology. Considering that the Amtrak website remains a disaster, and no actual updates to the reservation system, it begs the question of where this money is spent. The most logical answer is that Amtrak is leasing the lousy software that it is using, and much of this money is rental payments. Planning & Strategy falls much more into operating rather than a capital expense.

• The GAAP Loss for the year to date appears to be $755.9 million, which is $0.5 million better than FY2022.  The cash operating earnings for the year was $35.1 million, better than in FY2022.

• For operating cash earnings, the corporation is $9.1 million ahead of its forecast. The GAAP figure is $3.8 million better than the forecast.

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

  • Northeast Regional $37.9 million

  • Acela $36.2 million

  • Auto Train $6.5 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 $13.2 million. The methodology used to compute the profitability of these trains has been changed. Most likely, the high dollar fares for connecting with points north of Washington, DC, is either being prorated between the Virginia Trains and the NEC or have been appropriated to income for the NEC. Ridership has recovered from the depressed Covid levels of the previous years.

• Amtrak is now showing costs based on Frequency Variable Costs, Route Variable Costs, and System Fixed Costs. Most trains covered their Frequency Variable Costs. The exception was all of the long-distance trains except for the Auto train, Silver Meteor, and Palmetto. The capacity of most long-distance trains remains constrained.

• Ridership for the Fiscal Year to date rose more than 2,755,000 from FY2022. For the year, it stands at 10,688,100 (Amtrak reports ridership to the nearest 100). The total number of riders in February was 1,831,100. The situation with the long-distance trains shows a gain in riders across all product lines. The City of New Orleans was the biggest winner at a +43.4% gain in the new fiscal year so far. The Texas Eagle was second at a 33.2% gain. The lines that showed the smallest ridership gains after the Capitol. Ltd at +2.0%, with the Cardinal at +4.8%. The Acela gained 62.6%.

• Amtrak intends to return 40 cars from storage in FY2024 if it gets its complete request for appropriations.  Rhode Island has applied for a CRISI Grant to study the electrification of the MBTA Commuter Train running to Wickford Jct.

Steve Musen, Representative from Rhode Island to the NARP Council of Representatives.