TRAILER BRIDGE INC (TRBR)
Quarterly Report (SEC form 10-Q)

RESULTS OF OPERATIONS:
Three Months Ended March 31, 2000 and 1999

Operating revenues for the three months ended March 31, 2000 were $21,333,405 a decrease of $1,417,199 or 6.2%, compared to the first quarter of 1999. The Company's monthly operating revenues grew consistently throughout the first quarter of 2000. Operating revenues for January, February and March 2000, were $5.5 million, $6.7 million and $9.1 million, respectively. Based primarily upon a change in itinerary involving the same number of deployed vessels, Trailer Bridge had 15.3% more overall vessel capacity deployed to Puerto Rico compared to the first quarter of 1999. For the three months ended March 31, 2000, total southbound volume decreased .4% and northbound volume increased by 12.1% compared to the year earlier period. The PIERS data indicates that the overall Puerto Rico market was down 7.8% for the three months ended March 31, 2000 as market volumes swelled during the first quarter of 1999 in the aftermath of Hurricane Georges. As the changes the Company experienced during the first quarter of 2000 were favorable compared to the respective changes in overall market volume, the Company's southbound market share excluding vehicles, improved for the three months ended March 31, 2000 to 12.2% from 11.9% for the year earlier period and the Company's northbound market share improved for the three months ended March 31, 2000 to 15.6% from 13.3% for the year earlier period.

Comparing total volume and total revenue by direction, effective yield to and from Puerto Rico for the three months ended March 31, 2000 decreased 9.2% and 10.9%, respectively, compared to the same period last year. Puerto Rico deployed vessel capacity utilization overall during the first quarter of 2000 was 74.7% to Puerto Rico and 26.8% from Puerto Rico compared to 88.8% to Puerto Rico and 26.8% from Puerto Rico for the same period last year. The Company's vessel capacity utilization grew consistently in both directions throughout the first quarter of 2000 as shown in the table below. The stated capacity utilization figures are based upon vessels deployed in service and exclude the effect of two Triplestack Box Carriers(TM) that are presently laid-up. Total net expenses related to these two vessels, consisting primarily of depreciation and interest and reduced by $259,090 of charter revenue from third parties in the early part of the quarter, was $98,848 for the three months ended March 31, 2000. When deployed, these two vessels will increase the Company's in service fleet capacity by approximately 31%.

For the three months ended March 31, 2000 operating loss was $903,031, an improvement of $1,175,404 from the $2,078,435 operating loss in the year earlier period. The Company's operating results improved consistently throughout the first quarter of 2000 with January and February producing operating losses of $1,387,795 and $452,787, respectively, with March producing operating income of $927,551. Compared to the first quarter of 1999, operating income for the three months ended March 31, 2000 was higher despite lower yields and revenue due to the absence of additional costs of $2,382,909 related to the disruption resulting from the loss of use of the San Juan ramp due to Hurricane Georges. As a result of the above, the operating ratio was 104.2% during the first quarter of 2000 compared to the 109.1% operating ratio during the year earlier period. Net interest expense for the three months ended March 31, 2000 of $943,996 was up $291,203 from the year earlier period that included less debt and lower interest rates.

Loss before income taxes for the three months ended March 31, 2000 was $1,836,265, an improvement of $864,546 from the year earlier period. After income taxes, net loss for the three months ended March 31, 2000 was $1,150,927 compared to the net loss of $1,683,679 for the year earlier period. Net loss per share was $.12 for the three months ended March 31, 2000 compared to net loss per share of $.17 for the year earlier period.

The following table highlights the actual operating results for the quarter by month along with related volume and utilization statistics.

                                                      January       February         March         1Q2000
Revenue                                             5,511,777      6,696,021     9,125,607     21,333,405
Operating (loss) income                           (1,387,795)      (452,787)       927,551      (903,031)
Net (loss) income before taxes                    (1,689,450)      (764,414)       617,599    (1,836,265)
Net (loss) income                                 (1,049,939)      (477,491)       376,503    (1,150,927)
Net (loss) income per share                            (0.11)         (0.05)          0.04         (0.12)
Operating ratio                                        125.1%         106.7%         89.7%         104.2%
Weeks Volume/Revenue                                        4              4             5             13
Southbound Puerto Rico volume                           1,950          2,400         3,078          7,428
Total Puerto Rico volume                                2,574          3,155         4,223          9,952
Southbound vessel capacity utilization                  66.8%          75.5%         80.0%          74.7%
Overall vessel capacity utilization                     46.1%          51.7%         54.9%          51.4%

LIQUIDITY AND CAPITAL RESOURCES
For the three months ended March 31, 2000, net cash provided by operating activities was $1,064,672, an improvement of approximately $3.5 million from the year earlier period. At March 31, 2000, cash amounted to $2.0 million and stockholders equity was $28.1 million. The Company was in compliance with all financial covenants related to its revolving credit at March 31, 2000. At March 31, 2000 the Company has negative working capital of $988,512. The Company believes that it presently has sufficient capital resources and liquidity for its anticipated debt service requirements, its anticipated capital expenditures, and to meet its working capital needs.

FORWARD-LOOKING STATEMENTS
This report may contain statements that may be considered as forward-looking or predictions concerning future operations. Such statements are based on management's belief or interpretation of information currently available. These statements and assumptions involve certain risks and uncertainties and management can give no assurance that such expectations will be realized. Among all the factors and events that are not within the Company's control and could have a material impact on future operating results are general economic conditions, cost and availability of diesel fuel, adverse weather conditions and competitive rate fluctuations.

©1998 Trailer Bridge, Inc.