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RailAmerica Inc.'s fourth-quarter financial results mirrored those of other holding companies and railroads: more dollars coming in on a year-over-year basis, but more dollars going out because of higher fuel costs.

Today, RailAmerica reported quarterly consolidated revenue of $103.5 million, a 12 percent increase compared with fourth-quarter 2003. Quarterly net income — including discontinued operations — more than tripled to $4.3 million.

However, quarterly income from continuing operations dipped slightly to $4.5 million compared with $4.8 million in fourth-quarter 2003, and consolidated operating income fell more than 30 percent to $12.4 million. Quarterly operating expenses rose 24 percent to $91.1 million compared with the same 2003 period primarily because fuel costs increased $3.5 million. During the quarter, RailAmerica paid an average per gallon price of $1.62 compared with 98 cents in fourth-quarter 2003.

"In the midst of a difficult business environment — steep fuel price increases, increasing health insurance costs and congestion at some of our Class I partners — we achieved many of our strategic goals for the year," said RailAmerica Chief Executive Officer Charles Swinburn in a prepared statement.

For the full year, the company increased revenue from continuing operations 12.3 percent to $395.6 million compared with 2003. However, RailAmerica reported a loss from continuing operations of $21.4 million because of charges associated with the impairment of the E&N Railway, debt refinancing and the former CEO's retirement. Annual operating expenses rose 28 percent to $353.2 million compared with 2003.