May 2023 Amtrak Financial Report
The April Report was dated July 24, 2023, and posted on July 25 , 2023.
2. The NEC generated for the year to date, a cash operating surplus of $110.7 million (as determined by their accounting system). The remainder of the system had an operating cash loss of $678.5 million. Combined the entire system had for the period a cash operating deficit of $517.8 million.
Year to date, the NEC made debt service payments totaling $126.1 million and capital expenditures of $975.71 million. Accounting for all capital sources, the NEC Account has a positive balance of $900.9 million, and cash reserves remaining from previous years.
The rest of the National System, $6.2 million was needed for debt service and $670.0 million was spent on capital expenditures. The National Network Account Balance now has a positive balance of $458.0 million, and has accumulated surpluses from previous years.
Appropriated money for the combined NEC and National Network received year to date was $3,041.5 million. Amtrak has also received $608.1 million for the entire system from other capital sources. The federal grants received in May totaled $2,00603 BILLION, most likely as a result of the Federal Debt Limit Resolution that took place freeing up money that had been held back, and is the primary reason why the NEC and National System accounts are now positive.
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.
Amtrak’s burn rate for October 2022 (Operating Revenues-Minus Operating Expense-Minus Debt Service-Capital Expenditures) was $210.3 million, November’s was $318.8 million, December’s was $256.4 million, January’s was $271.7 million, February’s was $295.2 million, March’s was $324.2 million, April’s was $273.9 million, and May’s was $345.2 million.
Capital Spending for the year to date was: Infrastructure Services $686.7 million, Mechanical $219.6 million, Operations $6.7 million, Digital Technology $180.3 million, Commercial and Marketing $1.0 million, ADA $83.4 million, Real Estate Stations & Facilities $40.2 million Amtrak Police & Emergency Management $5.6 million, Safety $4.1 million Environmental $4.2 million, Procurement $1.2 million, Acela 21 $114.8 million. Gateway $134.6 million, Planning & Strategy $53.8 million, B&P Tunnel $61.6 million, and Intercity Trainsets $34.0 million. The total was $1.6 billion, which is $344.0 million more than the same period last year.
The GAAP Loss for the year to date appears to be $1.2 billion, which is $55.9 million better than FY2022. The cash operating earnings for the year was $98.0 million better than in FY2022.
For cash operating earnings, the corporation is $4.3 million ahead of it Forecast. The GAAP figure is $10.2 million better than the Forecast.
The number of product lines showing a measurable operating surplus for the period was five. The three with a surplus over $1 million were:
Northeast Regional $74.4 million
Acela $67.1 million
Auto Train $14.7 million
The Hoosier State (which has not run for several years) is shown as profitable to the tune of $0.9 million and listed as one of those five.
The four Virginia product lines generated a total loss of $20.8 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. The exception were the Illinois Zephyr and all of the long distance trains, not including the Auto train, Silver Meteor, and Palmetto. The capacity of most long-distance trains remains constrained. This extremely acute on the Superliner Fleet. The Capitol Ltd. is still running with only one coach and one sleeper and a cross-country diner.
Ridership for the Fiscal Year to date is more than 3,663,700 from FY2022. For the year, it stands at 17,754.600 (Amtrak reports ridership to the nearest 100). The total number of riders in May was 2, 459.800. This was slightly less than the number of riders in May 2022. The long-distance trains show a gain of riders across most product lines, except the Silver Star, and Capitol Ltd. The Star has lost riders to the Silver Meteor now that it has been restored. The Capitol can be explained by the starvation level of its consist. The Silver Meteor was the biggest winner at +120.8% gain in the new fiscal year to date. The City of New Orleans was second at 46.8% gain. The lines that showed smallest ridership gains after the Star and the Capitol. Ltd was the Auto Train at 2.2% and the Cardinal with +4.4% . The Acela gained 49.4%.
The House THUD Bill is a disaster cutting Amtrak funding for the NEC to $99,231,000 which is only 7.9% of the money appropriated for the current Fiscal Year. The amount for the National System was $776,376,000 or 64.7% of the money appropriated in FY2023. Most of the grant programs were zeroed out. This was the work of the merry men and women of the Freedom Caucus (slashing with their swords at everything including each other, while pursuing their mission of robbing the poor to give to the rich!!).
The Senate THUD Bill is much more to our liking even if it does not fund the full authorized limits (again!!). The NEC gets $1,141,442,000 and the National Network gets $1,313,033,000.
Both bills will not reach their respective floors until September. Most likely they will end up as part of a minibus late in the year. There is a serious question of whether the House Freedom Caucus will permit the passage of any continuing resolution as they would rather shut the government down. They will also object and try to defeat a minibus containing multiple budget bills.
Amtrak will be spending considerable money on the tracks between New York City and Washington and on upgrading maintenance facilities on the NEC and Seattle.
Steve Musen, Representative from Rhode Island to NARP’s Council of Representatives.