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Tuesday April 3, 2001
Trailer Bridge Reports Fourth Quarter Results JACKSONVILLE, Fla.--(BUSINESS WIRE)--April 3, 2001--Trailer Bridge, Inc. (NASDAQ National Market: TRBR) today reported financial results for the fourth quarter and year ended December 31, 2000 (see attached table). Total revenue for the three months ended December 31, 2000 increased $966,937, or 4.3%, to $23,456,206 from the fourth quarter of 1999. Revenue for the fourth quarter of 2000 also increased $304,542, or 1.3%, from the third quarter of 2000. Core trailer volume to Puerto Rico increased 17.5% compared to the year earlier period while total car and other vehicle volume was down 16.8% compared to the year earlier period. As a result, core trailer revenue increased $1,318,804, or 9.8%, compared to the year earlier period; conversely, car and other vehicle revenue decreased 22.3% compared to the year earlier period. For the fourth quarter, revenue from shipper owned or leased equipment moving to Puerto Rico decreased $204,567, or 24.2%, from the year earlier period. Trailer volume from Puerto Rico decreased 2.9%, while related revenue decreased $541,105, or 23.1%, compared to the fourth quarter of 1999. Total domestic revenue of $1,341,504 represented an increase of $317,426, or 31.0%, from the year earlier period. Based on the deployment of an additional vessel in the New York to San Juan trade lane, Trailer Bridge had 9.0% more overall vessel capacity deployed to Puerto Rico compared to the fourth quarter of 1999. The operating loss for the fourth quarter of 2000 was $5,131,721 compared to operating income of $353,494 in the year earlier period prior to the recognition of a $3,710,000 non-recurring benefit. The fourth quarter of 2000 was adversely impacted by two delayed voyages that would have generated revenue of $1,168,846; these voyages departed on January 1, 2001 and will, therefore, be included in revenue for the first quarter of 2001. Other voyages in the fourth quarter of 2000, representing estimated revenue of $857,519, were cancelled due to inclement weather. Furthermore, during the fourth quarter trucking costs were unexpectedly high due to a regional driver program that has since been discontinued, as well as below normal utilization levels. The operating ratio was 121.9% during the fourth quarter of 2000 compared to an operating ratio of 98.5% for the same period last year, prior to the non-recurring benefit. Net interest expense of $731,210 was down $249,061 from the year earlier period. The pre-tax loss for the fourth quarter of 2000 was $5,867,108 compared to a pre-tax loss of $628,769 in the year earlier period, prior to the recognition of the non-recurring benefit. This loss per share was equal to $.60 in the fourth quarter. Because Trailer Bridge has had a cumulative loss over a three year period, under generally accepted accounting principles prescribed by the provisions of SFAS No. 109, ``Accounting for Income Taxes'', it essentially is required to establish a 100% valuation allowance on deferred tax assets of $6.8 million as of December 31, 2000. As a result of the establishment of such valuation allowance, Trailer Bridge fully reversed previous tax credits and recorded a non-cash tax provision of $3,741,186 in the fourth quarter of 2000. Management still expects that Trailer Bridge will utilize its entire deferred tax asset. As Trailer Bridge re-establishes profitable operations, this valuation allowance will be re-evaluated and brought back into the income statement as and when appropriate under SFAS No. 109. Until the valuation reserve is reduced below 100%, Trailer Bridge will not record either tax charges or tax credits. After giving effect to this non-cash tax provision, the net loss for the fourth quarter of 2000 was $9,608,294, or $.98 per share. At December 31, 2000, cash amounted to $865,165 and working capital was $3.1 million. In late December, Trailer Bridge finalized a $29 million financing agreement with General Electric Capital Corporation. The three-year facility includes a term loan, a revolving credit facility and a capital expenditure line of credit. At the closing, approximately $17 million of the facility was drawn down, with $13 million utilized to re-finance existing debt and the balance utilized to purchase new 53' container and chassis equipment. Trailer Bridge is in compliance with all financial covenants related to this agreement. Trailer Bridge's projected cash flows from operations indicate that there is sufficient available liquidity to meet all of its present and anticipated obligations and requirements. Furthermore, to augment its own cash flow, Trailer Bridge has certain agreements with an affiliate to provide further assistance. During the first quarter of 2001, Trailer Bridge received $3,172,135 in advances from an affiliate. The advance is payable in April 2002. Trailer Bridge was also provided $1,809,000 in charter hire relief from an affiliate during the first quarter of 2001. In addition, Trailer Bridge has entered into an agreement with an affiliate to defer the second quarter of 2001 charter hire payments and defer one-half of the third quarter of 2001 charter hire payments. In total, these charter hire deferrals until next year total $2,753,700. For the fourth quarter of 2000, comparing total volume and total revenue by direction, Trailer Bridge's effective yield to and from Puerto Rico decreased 15.6% and 20.9%, respectively, compared to the same period last year. Compared to the third quarter of 2000, the effective average yield on Trailer Bridge's business to and from Puerto Rico decreased 1.7% and increased 0.9%. Trailer Bridge had an average of 235 tractor units operating on the mainland during the quarter, generating 8,815 miles per month of which 72.7% were loaded. Those later figures are below historical levels but represent a slight improvement from the third quarter of 2000 that showed 8,782 miles per month of which 69.7% were loaded miles. The Company's Puerto Rico deployed vessel capacity utilization during the fourth quarter was 79.5% to Puerto Rico and 21.3% from Puerto Rico. These were above the 73.2% to Puerto Rico and below the 24.4% from Puerto Rico during the fourth quarter of 1999. Compared to third quarter of 2000 capacity utilization of 81.2% to Puerto Rico and 26.1% from Puerto Rico, the fourth quarter represented a decrease in both the southbound and northbound lanes. All of these capacity utilization figures are based upon vessels deployed in service and exclude the effect in the fourth quarter of a Triplestack Box Carrier(TM) that was chartered out for much of the quarter. Total revenue related to that vessel was $83,075 in excess of depreciation, interest and other costs during the fourth quarter. During the fourth quarter of 2000, total volume on the direct Northeast to Puerto Rico lane increased 52.5% and 59.1% southbound and northbound, respectively, compared sequentially to the third quarter. At the beginning of the fourth quarter, the Port Newark to San Juan service was expanded to weekly frequency from its prior bi-weekly frequency. Overall vessel capacity utilization on the Northeast segment was 70.7% and 7.9% southbound and northbound, respectively, in the fourth quarter compared to 62.2% and 9.1% in the third quarter. Total revenue of $3,828,839 on the Northeast lane was 37.2% more in the fourth quarter than in the third quarter. Trailer Bridge estimates that the loss related to the Northeast service was $1,644,361 during the fourth quarter. Throughout 2000, the market to and from Puerto Rico has been characterized by increasing competitive activity. The excess vessel capacity in the market was exacerbated by market volume reductions that resulted in overall market volume declining 4.0% for all of 2000, with the fourth quarter more pronounced at 4.7%. While Trailer Bridge increased its overall market share of freight moving in trailers or containers to 13.6% in 2000 from 11.6% in 1999, the highly competitive market conditions resulted in an 11.0% reduction in yield. On March 21, 2001, the largest participant in the Puerto Rico market, NPR/Navieras, which had a 29.0% share of market in 2000, in conjunction with its parent and affiliates filed for Chapter 11 bankruptcy protection in the Delaware Bankruptcy Court in Wilmington, Delaware. John D. McCown, Chairman and CEO, said, ``Even excluding schedule related revenue distortions, Trailer Bridge's results were a major departure from anticipated results. Market participants are in a brutal price war and are experiencing extraordinary losses in the endgame of the long overdue market shakeout. We remain confident in the competitive attributes of our system relative to those of higher cost competitors. We have taken additional steps to assure our own staying power. Our efficiency and stamina are a powerful combination that will serve us well in this competitive battle.'' Trailer Bridge will discuss fourth quarter results in a conference call at 4:00 P.M. (Eastern Time) on Thursday, April 5, 2001 that will simultaneously be broadcast over the Internet through ccbn.com. In order to listen to the live webcast, please go to either the www.trailerbridge.com website and click on the conference call link, or go to the www.ccbn.com website, click on ``Services'' and search for TRBR. The conference call will be archived at either site and accessible for approximately 90 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, 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, severe weather, 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.
STATEMENT OF OPERATIONS
Three Months 12 Months
Ended December 31, Ended December 31,
------------------ ------------------
Unaudited Audited
------------------ ------------------
2000 1999 2000 1999
------------------- ------------------
OPERATING REVENUES $23,456,206 $22,489,268 $91,706,164 $88,552,088
OPERATING EXPENSES:
Salaries wages, and
benefits 4,683,036 4,251,480 16,648,581 16,222,059
Rent and purchased
transportation:
Related Party 1,849,200 1,849,200 7,356,600 7,336,500
Other 8,174,844 6,103,173 26,487,467 26,148,311
Fuel 3,519,897 1,915,188 11,157,500 6,659,189
Operating and
maintenance
(exclusive of
depreciation shown
separately below) 6,638,850 (1,450,988) 21,503,909 17,230,798
Taxes and licenses 121,306 45,387 497,016 596,241
Insurance and claims 685,365 564,974 2,373,186 1,962,541
Communications and
utilities 191,487 144,644 662,026 820,735
Depreciation and
amortization 1,211,523 1,267,600 4,840,965 4,731,153
Other operating
expenses 1,512,420 3,735,115 4,570,617 6,964,911
--------- --------- --------- ---------
28,587,927 18,425,773 96,097,866 88,672,437
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OPERATING (LOSS)
INCOME (5,131,721) 4,063,494 (4,391,702) (120,350)
NONOPERATING INCOME
(EXPENSE):
Interest expense,
net (731,211) (980,470) (3,357,936) (3,339,382)
Gain on sale of
equipment, (4,177) (1,792) 430,216 81,499
------ ------ ------- ------
(735,387) (982,263) (2,927,720) (3,257,883)
-------- ------- --------- ---------
(LOSS) INCOME BEFORE
BENEFIT
(PROVISION) FOR INCOME
TAXES (5,867,108) 3,081,232 (7,319,422) (3,378,233)
BENEFIT (PROVISION)
FOR INCOME TAXES (3,741,186) (1,180,012) (3,149,432) 1,241,814
Income Before Cumulative
Effect of
--------- --------- --------- ----------
Accounting Changes (9,608,294) 1,901,220 (10,468,854) (2,136,419)
Cumulative Effect of
Accounting Changes
(Net of Income Taxes) - - 127,100 -
---------- --------- ------- -------
NET (LOSS) INCOME $(9,608,294) $1,901,220 $(10,341,754)$(2,136,419)
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NET (LOSS) INCOME PER
SHARE $(0.98) $0.19 $(1.06) $(0.22)
====== ===== ====== =====
WEIGHTED AVERAGE
SHARES OUTSTANDING 9,777,500 9,777,500 9,777,500 9,777,500
========= ========= ========= =========
FORWARD-LOOKING STATEMENTS This report contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The matters discussed in this report 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 weather, economic recessions, changes in demand for transportation services offered by the Company, and changes in rate levels for transportation services offered by the Company. ______________________ Contact:
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