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8-K - FORM 8-K - TRAILER BRIDGE INC | d8k.htm |
Exhibit 99.1
CONTACT: | -OR- | TRBR INVESTOR RELATIONS COUNSEL: | ||
Trailer Bridge, Inc. Ivy Barton Suter Chief Executive Officer (800) 554 -1589 www.trailerbridge.com |
The Equity Group Inc. www.theequitygroup.com Adam Prior (212) 836-9606 |
FOR IMMEDIATE RELEASE
TRAILER BRIDGE REPORTS FIRST QUARTER 2010
UNAUDITED FINANCIAL RESULTS
Company to Hold Conference Call on Tuesday May 18, 2010, at 10:00 AM ET
2010 First Quarter Financial Highlights Compared to the Year Earlier Period
| Revenue increased 13.8% to $28.8 million |
| Operating income increased 23.8% to $2.2 million |
| EBITDA rose 12.4% to $3.8 million |
| Net loss reduced to $308,000 from $768,000 |
Jacksonville, FL May 17, 2010 Trailer Bridge, Inc. (NASDAQ Global Market: TRBR) today reported unaudited financial results for the first quarter ended March 31, 2010 (see attached tables). The Company reported operating income of $2.2 million in the first quarter of 2010, a 23.8% increase vs. operating income of $1.8 million in the first quarter of 2009 on increased revenue and volume. Net loss for the first quarter of 2010 improved by $0.5 million to $0.3 million, or $0.03 per basic and diluted share, vs. $0.8 million, or $0.06 per basic and diluted share, in the prior-year period. The $0.3 million in net loss included $379,900 in legal and related expenses in connection with the ongoing Department of Justice investigation. EBITDA for the first quarter of 2010 was $3.8 million, a 12.4% improvement from $3.4 million in the prior-year period. Adjusted EBITDA, as detailed in the accompanying table, was $4.4 million in the first quarter of 2010.
The Company reported revenue of $28.8 million during the quarter, up 13.8% from the prior year period but a decrease of 6.1% sequentially from the fourth quarter of 2009. Excluding the effect of fuel surcharges, revenue increased by 11.4% from the prior year but decreased 8.3% from the fourth quarter of 2009.
Ivy Suter, Trailer Bridges Chief Executive Officer, said, Compared to the prior-year period we saw growth in both volume and revenue in all trade lanes. This resulted in improved operating and net results vs. the same period last year, and the Company generated $3.1 million in cash from operations. We increased our volume in the quarter with both new and existing accounts. Our strong capacity utilization has continued through April and into May.
Ms. Suter added, As previously noted, we purchased $1.0 million face amount of our outstanding Senior Secured Notes in January 2010.
Trailer Bridge, Inc. May 17, 2010 |
Page 2 |
The Companys deployed vessel capacity utilization during the first quarter was 96.5% southbound and 30.2% northbound, compared to 84.7% and 25.5%, respectively, during the first quarter of 2009, and 92.0% and 29.8%, respectively, sequentially from the fourth quarter of last year. Capacity utilization includes the effect of reduced sailings over the holiday periods. Utilization would have been 92.1% for southbound and 28.9% for northbound if sailings had not been reduced. Overall volume southbound increased 2.7% from the fourth quarter of 2009 and increased 17.0% from the same quarter last year.
As previously announced, in an April 30, 2010, ruling by non-final order, the United States District Court for the District of Puerto Rico granted Trailer Bridges motion to be dismissed with prejudice from a lawsuit seeking class-action status related to alleged anti-competitive activity in the Puerto Rico marine trade. William G. Gotimer, Jr., EVP & General Counsel, said, We are not currently a defendant in any lawsuit related to the anti-trust investigation into the Puerto Rico trade.
Financial Position
At March 31, 2010, the Company had cash balances of $11.4 million and working capital of $12.5 million. The Company has no outstanding amount on its $10.0 million revolving credit facility, and, based upon eligible receivables, currently has $8.7 million of availability under this facility. During the three months ended March 31, 2010, net cash from operating activities was $3.1 million. Trailer Bridges net debt to adjusted EBITDA ratio improved to 3.9x at March 31, 2010, from 5.3x at March 31, 2009.
Conference Call
The Company will discuss these results in a conference call on Tuesday, May 18, 2010, at 10:00 AM ET. The dial-in numbers are (888) 737-9834 (US) and (706) 643-9215 (International). To listen to the live webcast, please go to www.trailerbridge.com and click on the conference call link, or go directly to:
http://investor.shareholder.com/media/eventdetail.cfm?eventid=81371&CompanyID=TRBR&e=1&mediaKey=DF0A86A187AB6F9A610445BB4B897AC6.
The webcast will be archived and accessible for approximately 30 days if you are unable to listen to the live call.
Trailer Bridge provides integrated trucking and marine freight service to and from all points in the lower 48 states and Puerto Rico and Dominican Republic, bringing efficiency, service, security and environmental and safety benefits to domestic cargo in that traffic lane. This total transportation system utilizes its own trucks, drivers, trailers, containers and U.S. flag vessels to link the mainland with Puerto Rico via marine facilities in Jacksonville, San Juan and Puerto Plata. Additional information on Trailer Bridge is available at the www.trailerbridge.com website.
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The matters discussed in this press release include statements regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to the future operating performance of the Company and its asset utilization. Investors are cautioned that any such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward looking statements as a result of various factors. Without limitation, these risks and uncertainties include the risks of changes in demand for transportation services offered by the Company, changes in rate levels for transportation services offered by the Company, changes in the cost of fuel, unfavorable outcomes from the United States Department of Justice (DOJ) investigation and related actions, economic recessions and severe weather as well the ability to retain and/or attract the necessary personnel and maintain necessary vendor relationships.
(Tables to Follow)
###
Trailer Bridge, Inc. May 17, 2010 |
Page 3 |
TRAILER BRIDGE, INC.
CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended March 31, |
||||||||
2010 | 2009 | |||||||
(unaudited) | (unaudited) | |||||||
OPERATING REVENUES |
$ | 28,844,964 | $ | 25,340,915 | ||||
OPERATING EXPENSES: |
||||||||
Salaries, wages, and benefits |
4,039,755 | 4,205,798 | ||||||
Purchased transportation and other rent |
7,175,202 | 5,662,974 | ||||||
Fuel |
4,293,654 | 3,337,269 | ||||||
Operating and maintenance (exclusive of depreciation & dry-docking shown separately below) |
6,558,082 | 5,749,389 | ||||||
Dry-docking |
| 331,281 | ||||||
Taxes and licenses |
178,824 | 163,232 | ||||||
Insurance and claims |
771,933 | 808,041 | ||||||
Communications and utilities |
171,789 | 200,743 | ||||||
Depreciation and amortization |
1,540,742 | 1,553,126 | ||||||
Loss (gain) on sale of property and equipment |
21,344 | (6,272 | ) | |||||
Other operating expenses |
1,862,933 | 1,533,728 | ||||||
26,614,258 | 23,539,309 | |||||||
OPERATING INCOME |
2,230,706 | 1,801,606 | ||||||
NONOPERATING (EXPENSE) INCOME: |
||||||||
Interest expense |
(2,535,191 | ) | (2,642,836 | ) | ||||
Interest income |
4,386 | 79,739 | ||||||
LOSS BEFORE PROVISION FOR INCOME TAXES |
(300,099 | ) | (761,491 | ) | ||||
PROVISION FOR INCOME TAXES |
(7,470 | ) | (6,543 | ) | ||||
NET LOSS |
$ | (307,569 | ) | $ | (768,034 | ) | ||
PER SHARE AMOUNTS: |
||||||||
NET LOSS PER SHARE BASIC |
$ | (0.03 | ) | $ | (0.06 | ) | ||
NET LOSS PER SHARE DILUTED |
$ | (0.03 | ) | $ | (0.06 | ) | ||
WEIGHTED AVERAGE |
||||||||
SHARES OUTSTANDING BASIC AND DILUTED |
12,013,788 | 11,851,284 | ||||||
Trailer Bridge, Inc. May 17, 2010 |
Page 4 |
TRAILER BRIDGE, INC.
CONDENSED BALANCE SHEETS
March 31, 2010 |
December 31, 2009 |
|||||||
(unaudited) | ||||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash and cash equivalents |
$ | 11,449,073 | $ | 10,987,379 | ||||
Trade receivables, less allowance for doubtful accounts of $372,144 and $441,985 |
14,800,147 | 12,814,741 | ||||||
Prepaid and other current assets |
1,957,557 | 2,444,337 | ||||||
Deferred income taxes, net |
278,856 | 278,856 | ||||||
Total current assets |
28,485,633 | 26,525,313 | ||||||
Property and equipment, net |
83,579,932 | 84,891,922 | ||||||
Reserve fund for long-term debt |
4,627,483 | 4,237,385 | ||||||
Other assets |
2,613,051 | 2,862,911 | ||||||
TOTAL ASSETS |
$ | 119,306,099 | $ | 118,517,531 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current Liabilities: |
||||||||
Accounts payable |
$ | 3,958,264 | $ | 3,088,124 | ||||
Accrued liabilities |
8,394,079 | 6,458,760 | ||||||
Unearned revenue |
726,715 | 611,147 | ||||||
Current portion of long-term debt |
2,874,700 | 3,874,700 | ||||||
Total current liabilities |
15,953,758 | 14,032,731 | ||||||
Other accrued liabilities |
12,500 | 55,556 | ||||||
Long-term debt, less current portion |
102,149,627 | 103,170,528 | ||||||
TOTAL LIABILITIES |
118,115,885 | 117,258,815 | ||||||
Commitments and Contingencies |
||||||||
Stockholders Equity: |
||||||||
Preferred stock, $.01 par value, 1,000,000, shares authorized; no shares issued or outstanding |
| | ||||||
Common stock, $.01 par value, 20,000,000 shares authorized; 12,079,914 and 12,031,707 shares issued; 12,040,741 and 11,992,534 shares outstanding at March 31, 2010 and December 31, 2009, respectively |
120,799 | 120,317 | ||||||
Treasury stock, at cost, 39,173 shares at March 31, 2010 and December 31, 2009 |
(156,692 | ) | (156,692 | ) | ||||
Additional paid-in capital |
53,949,668 | 53,711,081 | ||||||
Capital deficit |
(52,723,561 | ) | (52,415,990 | ) | ||||
TOTAL STOCKHOLDERS EQUITY |
1,190,214 | 1,258,716 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY |
$ | 119,306,099 | $ | 118,517,531 | ||||
Trailer Bridge, Inc. May 17, 2010 |
Page 5 |
TRAILER BRIDGE, INC.
CONDENSED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31,
2010 | 2009 | |||||||
(unaudited) | (unaudited) | |||||||
Operating activities: |
||||||||
Net loss |
$ | (307,569 | ) | $ | (768,034 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
1,540,742 | 1,553,126 | ||||||
Amortization of loan costs |
236,334 | 198,800 | ||||||
Non-cash stock compensation expense |
226,071 | 89,923 | ||||||
Provision for doubtful accounts |
194,024 | 190,680 | ||||||
Loss (gain) on sale of property and equipment |
21,344 | (6,272 | ) | |||||
(Increase) decrease in: |
||||||||
Trade receivables |
(2,179,429 | ) | 3,191,742 | |||||
Prepaid and other current assets |
486,778 | 520,124 | ||||||
Other assets |
3,392 | (420,703 | ) | |||||
Increase (decrease) in: |
||||||||
Accounts payable |
870,140 | (1,325,741 | ) | |||||
Accrued liabilities |
1,908,706 | (940,662 | ) | |||||
Unearned revenue |
115,567 | 1,061,882 | ||||||
Net cash provided by operating activities |
3,116,100 | 3,344,865 | ||||||
Investing activities: |
||||||||
Purchases of property and equipment |
(290,660 | ) | (1,698,940 | ) | ||||
Proceeds from sale of property and equipment |
46,600 | 23,818 | ||||||
Additions to other assets |
(385,999 | ) | | |||||
Net cash used in investing activities |
(630,059 | ) | (1,675,122 | ) | ||||
Financing activities: |
||||||||
Exercise of stock options |
12,999 | 81,205 | ||||||
Principal payments on notes payable |
(2,037,346 | ) | (1,020,900 | ) | ||||
Net cash used in financing activities |
(2,024,347 | ) | (939,695 | ) | ||||
Net increase in cash and cash equivalents |
461,694 | 730,048 | ||||||
Cash and cash equivalents, beginning of the period |
10,987,379 | 7,216,283 | ||||||
Cash and cash equivalents, end of period |
$ | 11,449,073 | $ | 7,946,331 | ||||
Supplemental cashflow information: |
||||||||
Cash paid for interest |
$ | 921,887 | $ | 963,199 | ||||
Trailer Bridge, Inc. May 17, 2010 |
Page 6 |
TRAILER BRIDGE, INC.
RECONCILIATION OF GAAP NET LOSS, TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION & AMORTIZATION; AND ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION &
AMORTIZATION (1)
Three months ended March 31, 2010 |
Three months ended March 31, 2009 |
|||||||
GAAP, Net loss |
$ | (307,569 | ) | $ | (768,034 | ) | ||
Net interest expense |
2,530,805 | 2,563,097 | ||||||
Provision for income taxes |
7,470 | 6,543 | ||||||
Depreciation and amortization |
1,540,742 | 1,553,126 | ||||||
Non-GAAP, EBITDA |
$ | 3,771,448 | $ | 3,354,732 | ||||
Adjustments: |
||||||||
Anti-trust related legal expense |
379,902 | 296,778 | ||||||
Stock compensation |
226,071 | 89,923 | ||||||
Loss (gain) on asset sales |
21,344 | (6,272 | ) | |||||
Dry-docking |
| 331,281 | ||||||
Total Adjustments |
627,317 | 711,710 | ||||||
Non-GAAP, Adjusted EBITDA |
$ | 4,398,765 | $ | 4,066,442 | ||||
Other financial measures: |
||||||||
EBITDA margin |
13.1 | % | 13.2 | % | ||||
Adjusted EBITDA margin |
15.2 | % | 16.0 | % | ||||
Net debt to adjusted EBITDA |
3.9 | x | 5.3 | x | ||||
Adjusted EBITDA to interest expense |
1.7 | x | 1.5 | x |
Use of Non-GAAP measures
(1) The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). The Company also believes that the presentation of certain non-GAAP measures, i.e., results excluding certain costs and expenses, provides useful information for the understanding of its ongoing operations and enables investors to focus on comparisons of operating performance from period to period without the impact of significant special items. Non-GAAP measures are reconciled in the accompanying financial table. The Company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for the Companys reported GAAP results.
Adjusted EBITDA is calculated by adding back legal expenses associated with the anti-trust litigation, dry-docking, non-cash compensation charges, and loss/gain on asset sales. Adjusted EBITDA was calculated on a twelve month trailing rate for purposes of calculating net debt to adjusted EBITDA.