Trailer Bridge Reports Record Revenue and a Return to Profitability For Immediate Release, Jacksonville, FL -- Trailer Bridge, Inc. (NASDAQ: TRBR) today reported the highest quarterly revenues in its history and a return to profitability for the three months ended June 30, 2000 (see attached table). The Company reported total revenue of $23,764,889 for the three months ended June 30, 2000, an increase of $1,078,472, or 4.8%, compared to total revenue of $22,686,417 reported in the second quarter of 1999. Increased revenue for the second quarter of 2000 was due to increased shipping volume. Compared sequentially to the first quarter of 2000, total revenue increased $2,431,484, or 11.4%. The Company also reported significant increases in income for the 2000 second quarter, highlighted by net income of $627,724, or $.06 per share, as compared to a net loss of $399,377, or $.04 per share, for the same period one year ago. Net income for the second quarter of 2000 included a benefit of $127,100 from the cumulative effect of change in accounting principle related to periodic vessel dry-docking. Compared to the first quarter of 2000, net income improved $1,778,652 while net income per share improved by $.18 from a first quarter loss of $.12. Operating income for the 2000 second quarter increased to $1,302,714, an improvement of $1,162,297, or 828%, from operating income of $140,417 in the year earlier period. Operating income was higher due to increased volume across most sectors, continuing improvement in costs and the absence of $709,335 of hurricane-related costs incurred last year related to the Company's operations in San Juan. Higher operating income resulted in an improved operating ratio (operating expenses/operating revenues) of 94.5% during the second quarter of 2000 compared to the 99.4% operating ratio during the year earlier period. Compared sequentially to the first quarter of 2000, operating income rose $2,205,745, resulting in a significant improvement in the first quarter 2000 operating ratio of 104.2%. Income before income taxes for the second quarter of 2000 was $824,551, an improvement of $1,451,963 from the year earlier period. Compared sequentially to the first quarter of 2000, income before income taxes improved by $2,660,817. Pre-tax income for the 2000 second quarter includes $45,717 in additional interest expense from the 1999 second quarter and $384,250 related to the sale of assets versus a gain of $48,866 in last year's second quarter. At June 30, 2000, cash amounted to $3.3 million and stockholders equity was $28.7 million. Trailer Bridge remained in full compliance with all financial covenants related to its revolving credit agreement and has sufficient capital resources and liquidity for its current and anticipated operations. For the second quarter of 2000, total southbound Puerto Rico volume increased 10.1% and total northbound volume increased 22.7% compared to the year earlier period. Comparing total volume and total revenue by direction, Trailer Bridge's effective yield to and from Puerto Rico decreased 8.5% and 13.0%, respectively, compared to the same period last year. Compared sequentially to the first quarter of 2000, volume in the second quarter of 2000 increased 9.9% southbound and 21.5% northbound, while yields decreased 1.3% southbound and 3.4% northbound. The Company's Puerto Rico deployed vessel capacity utilization overall during the second quarter was 79.9% to Puerto Rico and 29.3% from Puerto Rico. These were below capacity utilization figures of 90.6% to Puerto Rico and 30.6% from Puerto Rico during the second quarter of 1999 when Trailer Bridge had less effective capacity in the Puerto Rico lane prior to a change in itinerary involving the same number of overall deployed vessels. All of these 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, were $401,179 during the second quarter. When deployed, these two vessels will increase Trailer Bridge's in service fleet capacity by approximately 31%. Trailer Bridge's business model involves a high degree of operating leverage with changes in volume having a disproportionate effect on overall results. Based upon its cost structure and the fixed versus variable nature of those costs, Trailer Bridge believes that its present incremental cost to handle additional volume within its system is lower than that of any of its competitors. John D. McCown, Chairman and CEO, said, ``We are very pleased to report this substantial operating improvement and our return to profitability. We believe that the 94.5% operating ratio in the turbulent conditions still characterizing the Puerto Rico market demonstrates the meaningful edge in our superior, repeatable business model.'' Trailer Bridge will discuss second quarter results in a conference call at 10:00 A.M. (Eastern Time) on Wednesday, July 26 that will simultaneously be broadcast over the Internet through Investor Broadcast Networks' Vcall website, located at www.vcall.com. To listen to the live call please go to the website at least fifteen minutes early to register, download and install any necessary audio software. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days either through the www.vcall.com or www.trailerbridge.com website. Trailer Bridge provides integrated trucking and marine freight service to and from all points in the lower 48 states and Puerto Rico, bringing efficiency, environmental and safety benefits to domestic cargo in that traffic lane. This total transportation system utilizes its own trucks, drivers, trailers, containers, U.S. flag vessels and marine facilities in Jacksonville, New York and San Juan. Trailer Bridge's founder and majority stockholder is Malcom P. McLean, the transportation pioneer who invented containerization forty years ago. 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. 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 economic recessions, changes in demand for transportation
services offered by the Company, and changes in rate levels for
transportation services offered by the Company. Trailer Bridge, Inc.
Operating Statements
Three Months Six Months
Ended June 30 Ended June 30
---------------------- ----------------------
2000 1999 2000 1999
---------------------- ----------------------
OPERATING REVENUES 23,764,889 22,686,417 45,098,294 45,437,021
OPERATING EXPENSES:
Salaries, wages
& benefits 3,771,121 3,898,023 7,894,929 7,861,317
Rent and purchased
transportation:
Related Party 1,829,100 1,829,100 3,658,200 3,638,100
Other 6,132,911 6,694,947 11,743,325 13,768,185
Fuel 2,515,995 1,607,744 4,989,771 2,967,369
Operating &
Maintenance
(exclusive of
depreciation
shown separately
below) 5,229,909 5,353,351 10,352,592 12,757,183
Taxes & Licenses 98,159 174,587 258,260 389,305
Insurance & Claims 567,452 634,908 1,168,586 1,166,212
Communications and
utilities 145,174 206,156 309,155 415,457
Depreciation and
Amortization 1,207,764 1,156,611 2,417,994 2,249,056
Other Operating
Expenses 964,590 990,573 1,905,799 2,162,855
---------------------- ----------------------
22,462,175 22,546,000 44,698,612 47,375,039
---------------------- ----------------------
OPERATING INCOME (LOSS) 1,302,714 140,417 399,683 (1,938,018)
NONOPERATING (EXPENSE)
INCOME
Interest expense, net (862,412) (816,695) (1,806,408) (1,469,488)
Gain on sale
of property
and equipment 384,250 48,866 395,011 79,283
---------------------- ----------------------
(478,162) (767,829) (1,411,397) (1,390,205)
INCOME (LOSS) BEFORE
(PROVISION) BENEFIT
FOR INCOME TAXES 824,551 (627,412) (1,011,714) (3,328,223)
(PROVISION) BENEFIT
FOR INCOME TAXES (323,927) 228,035 361,411 1,245,167
---------------------- ----------------------
INCOME (LOSS) BEFORE
CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING
PRINCIPLE 500,624 (399,377) (650,303) (2,083,056)
CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING
PRINCIPLE, NET OF
TAXES OF $77,900 127,100 - 127,100 -
---------------------- ----------------------
NET INCOME (LOSS) 627,724 (399,377) (523,203) (2,083,056)
====================== ======================
NET INCOME (LOSS)
PER SHARE 0.06 (0.04) (0.05) (0.21)
WEIGHTED AVERAGE
SHARES OUTSTANDING 9,777,500 9,777,500 9,777,500 9,777,500
|
