FINANCIAL STATEMENTS

(in thousands)	Notes	2001		2000
REVENUES
Passenger		$234,939		$217,614
Other		18,889		23,037
		253,828		240,651
EXPENSES
Compensation and benefits		182,207		172,036
Train operations and fuel		92,199		83,259
Stations and property		28,292		29,177
Maintenance material		28,191		29,166
Marketing and sales		25,670		26,734
On-train product costs		15,760		15,548
Operating taxes		11,964		13,156
Employee future benefits	6	(62,127)		(55,673)
Amortization and losses on write-off and disposal of capital assets		47,147		52,216
Other		27,765		33,691
		397,068		399,310
Operating loss before funding from the Government of Canada and income tax		143,240		158,659
Operating funding from the Government of Canada		163,293		170,304
Amortization of deferred capital funding		46,980		50,200
Results of operations before income tax		67,033		61,845
Income tax expense	7	13,012		918
Net results of operations for the year		54,021		60,927
Retained earnings (deficit), beginning of year		19,976		(40,951)
Retained earnings, end of year		$73,997		$19,976

See accompanying notes to financial statements