* All Financial Data is Preliminary and Unaudited * MonthlyMonthly PerformancePerformance ReportReport forfor SeptemberSeptember 20112011 November 2, 2011 Table of Contents Page # A. Financial Results 1. Summary Performance Report versus Budget Operating Results - Month A-1.1 Operating Results - Year to Date A-1.2 Capital Spend Summary - Month A-1.3 Capital Spend Summary - Year to Date A-1.4 ARRA Capital Program Summary A-1.5 2. Metrics Metrics A-2.1 Inventory Turns / Balance A-2.9 3. Ridership and Revenue Ticket Revenue and Ridership Summary A-3.1 Ridership and Ticket Revenue by Route Current Month A-3.4 Year to Date A-3.5 Ridership and Revenue - Sleeper Class A-3.6 4. Actual and Forecast Results Income Statement by Business Lines Month, YTD vs. Budget and Prior Year A-4.1 Capital Project Overview Regular Projects A-4.8 ARRA Projects A-4.10 Mechanical Production Report A-4.13 Engineering Production Report A-4.15 5. Actual Analysis to Prior Year Consolidated Income Statement A-5.1 Consolidated Statements of Cash Flows A-5.4 Balance Sheet A-5.5 B. Legislative Report Legislative Updates B-1 C. Route Performance Report – Fully Allocated Summary YTD Route Results C-1 D. Workforce Statistics Headcount Data D-1 Other Employee Costs D-3 E. Performance Indicators Delay Minutes Summary Report E-1 Host Railroad Delay Minutes Report E-2 On-Time Performance E-7 i IINNAANNCCIIAALL EESSUULLTTSS Operating Results for the Month of September 2011 ($ millions) September September Fav/(Unfav) FY11 Budget to Budget Comments Revenues: Adjusted Ticket Revenue $150.7 $147.0 $3.7 Acela and Corridor routes partially offset by effects of weather and host railroad track work. Food & Beverage 12.8 8.4 4.4 Includes prior period adjustments. State Support 19.7 15.9 3.8 Includes payments for prior periods. Oregon and New York are unsigned. Total Passenger Related 183.2 171.3 11.9 Other Revenue 55.5 44.6 10.9 Timing of reimbursable operations and State capital amortization. Total Revenues $238.7 $215.9 $22.8 Expenses: Salaries, Wages & Benefits $168.7 $164.2 ($4.5) Higher accrued insurance costs and budgeted transfer credits now booked to Indirect Costs (below). Train Operations 23.1 22.1 (1.0) Increased Commissary and Bus costs partially offset by host railroad schedule adherence payments. Fuel, Power and Utilities 36.1 27.7 (8.4) Increased net diesel fuel costs partially offset by favorable power. Materials 3.2 18.9 15.7 Primarily an adjustment to the inventory reserve account and lower component overhauls. Facility & Communications 17.6 15.0 (2.6) Increase in security costs and building maintenance service fees. Advertising and Sales 13.9 9.8 (4.1) Timing of advertising programs (favorable YTD) and volume related credit card commissions. Casualty and Other Claims 5.8 5.1 (0.7) Increase in accrued FELA liability costs. Depreciation, net 52.7 59.4 6.7 Due to an adjustment to the group depreciation model. Other Expenses Professional Fees 16.4 9.8 (6.6) Unfavorable due to various Corporate initiatives. Data Processing Services 30.5 9.9 (20.6) Higher outsourced data center operations and PRJ related technology costs. Maintenance of Way Services 2.6 4.0 1.4 Favorable project related track roadway maintenance. Remaining Other Expenses 7.7 3.8 (3.9) Unfavorable due to accrued environmental costs and the disposal of certain assets. Indirect Cost Capitalized to P&E (29.1) (10.5) 18.6 Due to increased field overhead allocations. Total Expenses $349.2 $339.2 ($10.0) Net Loss from Operations $110.5 $123.3 $12.8 Interest Expense, net 5.4 6.3 0.9 Lower interest income due to defeased lease terminations. Net Loss $115.9 $129.6 $13.7 A - 1.1 Operating Results for the Year Ending September FY11 ($ millions) Year-End Year-End Fav/(Unfav) FY11 Budget (1) to Budget Comments Revenues: Adjusted Ticket Revenue $1,851.5 $1,767.2 $84.3 Primarily the Acela and Northeast Regional, with Long Distance trains up substantially as well. Food & Beverage 109.4 104.8 4.6 Volume related based on increased ridership. State Support 188.4 190.5 (2.1) Reflects higher ticket revenues on State supported services and unsigned contracts. Total Passenger Related 2,149.3 2,062.5 86.8 Other Revenue 565.0 563.6 1.4 Favorable Commercial rents partially offset by lower reimbursable work. Total Revenues $2,714.3 $2,626.1 $88.2 Expenses: Salaries, Wages & Benefits $1,962.8 $1,928.1 ($34.7) Reflects an increase in overtime and an adjustment to accrued OPEBs liability. Train Operations 253.7 269.0 15.3 Lower schedule adherence payments to host railroads partially offset by higher commissary costs. Fuel, Power and Utilities 337.8 332.4 (5.4) Increased net diesel fuel costs partially offset by lower purchased power and utility expenses. Materials 207.9 216.8 8.9 Reflects an adjustment to inventory reserve partially offset by higher component overhauls. Facility & Communications 188.9 177.6 (11.3) Increased data communications costs and project related security initiatives. Advertising and Sales 113.1 115.5 2.4 Lower advertising partially offset by volume related credit card commissions. Casualty and Other Claims 74.3 59.7 (14.6) Increase in accrued FELA liability costs. Depreciation, net 596.1 638.0 41.9 Due to an adjustment to the model used to calculate group depreciation. Other 399.8 318.7 (81.1) Due to an increase in outsourced technology services and project related M of W. Indirect Cost Capitalized to P&E (168.9) (134.6) 34.3 Due to increased overhead transfer rates and capitalization. Total Expenses $3,965.5 $3,921.2 ($44.3) Net Loss from Operations $1,251.2 $1,295.1 $43.9 Interest Expense, net 93.3 79.5 (13.8) Lower interest income partially offset by lower interest expense due to lease terminations. Net Loss $1,344.5 $1,374.6 $30.1 Adjustment (2) (887.0) (812.7) $74.3 Due to the variance in depreciation, project related costs and non-cash OPEBs. Operating Support excluding IG's office Requirement $457.5 Federal Operating Support $561.9 Variance - Fav / (Unfav) $104.4 (1) Reflects final FY11 budget based on appropriation level. (2) Adjustment to exclude Depreciation, Project related costs covered by Capital funding (PRJ), non-cash portion of OPEBs, State Capital Amortization, Net Interest Expense and the Inspector General's office. A - 1.2 Capital Spending for the Month of September 2011 Capital Spend September September Under/(Over) ($ millions) FY11 Authorized Authorized Comments Engineering $82.8 $18.6 ($64.2) Includes capital spending on ARRA projects with the expiration of ARRA program. - ADA 19.4 0.0 (19.4) Timing of spend versus authorized funds. Mechanical 23.7 18.3 (5.4) Timing of Acela and Superliner overhaul programs. All Else 64.1 38.1 (26.0) Timing of station upgrades, vehicle replacement program and Technology projects. Total $190.0 $75.0 ($115.0) A - 1.3 Capital Spending for the Year Ending September 2011 Capital Spend Total Authorized Under/(Over) ($ millions) FY11 FY11 Authorized Comments Engineering $470.0 $422.3 ($47.7) Facility and various wood tie and track replacement projects. - ADA 94.6 99.9 5.3 Authorization includes only FY10 funding. Mechanical 199.9 212.6 12.7 Reflects the timing of Superliner, Amfleet and Locomotive overhauls. All Else 250.0 277.9 27.9 Reflects underspend on joint commuter projects and station upgrades. Total $1,014.5 $1,012.7 ($1.8) Capital Spend ($ millions) Total Authorized Under/(Over) by Fund Source FY11 FY11 Authorized General Capital $704.4 $672.4 ($32.0) Primarily facility and various wood tie and track replacement projects. - ADA 94.6 99.9 5.3 Authorization includes only FY10 funding. All Else 215.5 240.4 24.9 Reflects underspend on joint commuter and host railroad projects. Total $1,014.5 $1,012.7 ($1.8) A - 1.4 ARRA Program Capital Spending as of September 2011 Capital Spend Forecast Program Program Under/(Over) ($ millions) Total (1) Authorized (1) Authorized Comments Non-Security Engineering $615.2 $607.2 ($8.0) Right of way clearing projects and Chicago Union Station Yard improvement project overspend covered with General Capital funding. Non-Security Mechanical 183.8 187.6 $3.8 Security & Life Safety 460.7 460.2 ($0.5) All Else (2) 63.7 74.2 $10.5 Total $1,323.4 $1,329.2 $5.8 (1) Includes all funding sources. (2) Excludes Inspector General amounts. Spend for the Month ($M) Spend for the Program to Date ($M) 1,400.0 1,400.0 1,200.0 1,200.0 1,000.0 1,000.0 800.0 800.0 600.0 600.0 400.0 400.0 200.0 200.0 - - Total N-S Eng N-S Mech Security All Else Total N-S Eng N-S Mech Security All Else Actual Authorized Actual Authorized A - 1.5 METRICS Key Performance Indicators For the Month Ended September 30, 2011 Budget Prior Year Actual Budget/Goal Prior Year (1) Fav / (Unfav) (2) Fav / (Unfav) (2) KPIs RASM - Core Revenue per Seat Mile (a) n/a $0.170 $0.145 n/a n/a CASM - Core Expenses per Seat Mile (b) n/a $0.227 $0.179 n/a n/a Core (NTS) Cost Recovery Ratio (c) n/a 74.7% 80.8% n/a n/a Ridership (000's) 2,389 2,383 2,286 6 103 Passenger Miles per total core employee (000's) (d) n/a 30 30 n/a n/a On-Time Performance (Endpoint) 78.4% 85.0% 82.5% -6.6% -4.1% Customer Satisfaction Index (e) 81 84 79 (3) 2 Host Railroad Performance (f) 1,149 n/a 952 n/a (197) Other Indicators Seat Miles (000's) 1,027,001 1,012,333 1,050,939 14,667 (23,938) Passenger Miles (000's) 505,975 521,885 495,239 (15,910) 10,736 Train Miles (000's) 3,024 3,123 3,109 (100) (85) Average Load Factor 49.3% 51.6% 47.1% -2.3% 2.1% Core diesel gallons per train mile (g) 2.3 2.3 2.2 0.0 -0.1 Seat Miles per total core employee (000's) (d) n/a 58 63 n/a n/a Customer Injuries 193 n/a 187