October 2023 Amtrak Financial Report

• The October Report was dated November 30, 2023, and posted on December 8 , 2023.  

• The NEC generated for the year to date, a cash operating surplus of $27.1 million (as determined by their accounting system), and the remainder of the system had an operating cash loss of $712.0 million. Combined, the entire system had a cash operating deficit of $44.9 million.

• The year to date, the NEC made debt service payments totaling $0.1 million and capital expenditures of $146.8 million. Counting all capital sources, the NEC Account has a positive balance of $26.8 million. It also has cash reserves remaining from previous years.

• For the rest of the National System $0.007 million was needed for Debt service, and $86.8 million was spent on Capital Expenditures. The National Network Account Balance now has a negative balance of $71.8 million. It 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 $128.6 million. Amtrak has also received from other capital sources $105.0 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 is $3.3 billion. The current ratio (Current Assets divided by Current Liabilities) was 1.894, making Amtrak quite credit-worthy for any fresh borrowings even though it is slightly down from last year.

• In October 2023, Amtrak’s burn rate (Operating Revenues-Minus Operating Expense-Minus Debt Service-Capital Expenditures) was $278.6 million.

• In Amtrak’s tradition of changing reporting of Capital Spending for the year to date several categories were renamed and gathered into larger categories:

  • Capital Renewal (formerly Engineering) $87.8 million

  • Mechanical $30.6 million

  • Operations $0.6 million

  • Digital Technology $20.4 million

  • Commercial and Marketing $0.0 million

  • ADA $10.1 million

  • Real Estate Stations & Facilities $6.5 million

  • Amtrak Police & Emergency Management a negative $0.1 million

  • Safety $0.1 million

  • Environmental $0.1 million

  • Procurement $0.2 million

  • Acela 21 $9.8 million

  • Gateway $37.5 million

  • Strategy & Planning $8.9 million

  • B&P Tunnel $7.3 million

  • Intercity Trainsets $3.3 million

  • Total was $233.6 million, which is $62.7 million more than the same period last year.

• The GAAP Loss for the year to date appears to be $233.6 million which is $8.4 million worse than FY2023. The cash operating earnings for the year was $5.7 million worse than in FY2023.

• For cash operating earnings, the corporation is $4.8 million behind its Forecast. The GAAP figure is $29.0 million better than the Forecast.

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

  • Acela $14.9 million

  • Northeast Regional $13.3 million

  • Auto Train $2.0 million

  • The Hoosier State (which has not run for several years) is still shown as profitable to the tune of $2.0 million and listed as one of those six.  This was the same procedure as last year when it was listed as a positive $0.9 million for the first eleven months of FY2023 and then as a negative $2.0 million for the year. I expect a similar accounting procedure in FY 2024.

  • The four Virginia product lines generated a total loss of $2.1 million.

• 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 were all of the long-distance trains, not including the Auto train, Silver Meteor, Lake Shore Ltd., Capitol Ltd., Crescent, and Palmetto. The Gulf Coast Ltd., which has not started running, is shown as not meeting its variable costs.

  • The capacity of most long-distance trains remains constrained. The Capitol Ltd.,, though, is back to two coaches, two sleepers, and the Cross Country Diner.

• Ridership for the Fiscal Year is more than 517,100 from FY2023. For the year, it stands at 2,892.000 (Amtrak reports ridership to the nearest 100). The total number of riders in August was 2,892.000. The situation with the long-distance trains shows a gain of riders across most product lines, except the Coast Starlight and Capitol Ltd and Auto Train. The starvation level of its consist can explain the Capitol and now a slow recovery. The Coast Starlight was annulled because of wildfires. The Auto Train had record ridership in FY2023, so it has reverted to previous levels. The Silver Meteor was the biggest winner at a +104.3% gain in the new fiscal year so far. The Palmetto was second at a 26.8% gain. The lines that showed the smallest ridership gains after the Starlight, Capitol. Ltd, Auto Train, and Lake Shore, Ltd. was the Sunset reporting the same level of ridership. The Acela gained 19.5%.

• Congress passed a continuous resolution at FY2023 levels through mid-January for all twelve budget bills. It maintains the FY2023 through early February for all budget bills except MILCON, THUD, Agriculture, and Energy & Water. In the six weeks since, neither the House nor the Senate has passed any further appropriation bills.

• President Biden has announced a huge number of grants benefiting passenger rail. Regrettably, none of these include an order for new cars. The grants primarily benefit studies and construction on the NEC and some high-speed rail projects.

Steve Musen, Representative from Rhode Island to NARP’s Council of Representatives