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8-K - FORM 8-K - TRAILER BRIDGE INCd8k.htm

Exhibit 99.1

LOGO

 

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 Bridge’s 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 Company’s 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 Bridge’s 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 Bridge’s 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     5.3

Adjusted EBITDA to interest expense

     1.7     1.5

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 Company’s 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.