2001 Third Quarter ResultsTrailer Bridge, Inc. Press Release Trailer Bridge Reports Third Quarter Results JACKSONVILLE, Fla. --
Trailer Bridge,
Inc. (TRBR)
today reported financial results for the third quarter ended September 30, 2001.
Total revenue for the three months ended September 30, 2001 was
$20,052,136, as compared to $23,151,664 for the third quarter of 2000.
Compared sequentially to the second quarter of 2001, total revenue decreased
$1,607,048 or 7.4%. In the early part of the third quarter, Trailer Bridge
experienced higher vessel utilization both southbound and northbound. Based
upon anticipated volume and revenue levels, Trailer Bridge had anticipated
that its third quarter operating results would show a meaningful improvement
over the second quarter results. Instead of higher volume and revenue that
would have driven improved results, the latter part of the third quarter saw
decreases in vessel utilization of a magnitude that produced these
sequential declines in revenue and operating income. Trailer Bridge had 5.0%
more overall vessel capacity deployed between the mainland and Puerto Rico
with weekly Northeast sailings compared to bi-weekly sailings in the third
quarter of 2000. Compared sequentially to the second quarter of 2001, total
deployed capacity was down 8.2%, primarily due to selective reductions in
Northeast sailings during the third quarter of 2001.
The operating loss for the third quarter ended September 30, 2001 was
$4,851,420, as compared to operating income of $340,337 in the year earlier
period. The operating loss was due to lower volume and asset utilization,
lower yields, and additional costs associated with weekly Northeast
sailings. As a result, Trailer Bridge's operating ratio was 124.1% during
the third quarter of 2001 compared to the 98.5% operating ratio during the
year earlier period.
The third quarter results include an accrual of more than $1.8 million of
charter-hire to an affiliate, the payment of which has been deferred. In
addition, charter-hire was accrued but deferred in the second quarter and
the charter-hire that was accrued for in the first quarter results has been
forgiven. These large non-cash accruals, the effect of the non-recurring
dry-docking expenses in both the first and second quarter and the large
non-cash depreciation charges underscore the importance of various cash flow
measures as a further benchmark on the level and trend of Trailer Bridge's
results. For example, the statement of cash flows as filed in Trailer
Bridge's 10-Q financial statements shows that net cash used in operating
activities was $1,035,099 during the third quarter, an improvement of $2.2
million compared sequentially to the second quarter of 2001.
For the third quarter ended September 30, 2001, net interest expense was
$807,284, down slightly from the year earlier period and sequentially from
the first quarter due to debt reductions. During the third quarter of 2001,
Trailer Bridge also had a gain of $38,157 related to the sale of excess 48'
trailer equipment. Loss before income taxes for the third quarter was
$5,620,547, a decrease of $5,179,947 from the year earlier period and a
decrease of $459,474 sequentially from the second quarter of 2001. As
previously disclosed, the effect of income taxes will not be reflected until
profitable operations resume. Net loss per share was $.57 for the third
quarter compared to net loss per share of $.02 for the year earlier period
and net loss per share of $.53 for the second quarter of 2001.
At September 30, 2001, cash amounted to $1,313,665 and stockholders
equity was equal to $4.5 million. Current liabilities increased by $16.4
million at September 30, 2001 because the Company was not in full compliance
with the terms of its revolving credit/term loan. As a result, Trailer
Bridge had negative working capital of $16.1 million. The lender is
continuing to provide funding to Trailer Bridge under the revolving credit
facility while the Company works to address the non-compliance. To that end,
the Company has reached an agreement in principle with an affiliate to
provide an additional $3 million of liquidity in the fourth quarter. Trailer
Bridge believes that this new facility, along with various other liquidity
initiatives that the Company intends to implement, will provide it with the
necessary liquidity to meet all obligations.
Comparing Trailer Bridge's segments for the third quarter of 2001 to the
year earlier period, total southbound volume decreased 10.2% and total
northbound volume decreased 23.0%. Comparing total volume and total revenue
by direction, Trailer Bridge's effective yield to and from Puerto Rico
decreased 5.3% southbound and increased 4.3% northbound. Core southbound
trailer yield was down 4.9% and the largest yield compression occurred in
the used car sector. The Company's Puerto Rico deployed vessel capacity
utilization was 69.5% southbound and 19.1% northbound, well below the 81.2%
and 28.1%, respectively, during the year earlier period when 5.0% less
capacity was deployed. While core southbound trailer volume decreased 4.8%,
all other sectors showed more pronounced volume decreases, with total car
volume down at 16.5%. Trailer Bridge had an average of 204 tractor units
operating on the mainland during the quarter, averaging 8,829 miles per
month of which 79.0% were loaded.
Comparing segments sequentially to the second quarter, total southbound
volume decreased 3.3% and total northbound volume decreased 9.5%. Trailer
Bridge's effective yield to and from Puerto Rico decreased 4.5% and 0.9%,
respectively, in a sequential comparison with the southbound yield reduction
driven by a significant decrease in the used car rates. Core southbound
trailer yield was down 0.6% sequentially from the second quarter. Deployed
vessel capacity utilization was up 3.8 percentage points southbound and down
0.4 percentage points northbound. Tractor performance in terms of loaded
mile utilization figures represented an increase of 1.2 percentage points
sequentially from the second quarter and a continuation of a favorable trend
since the fourth quarter of 2000.
John D. McCown, Chairman and CEO, said, ``We are analyzing an array of
operational actions to put us on the best footing to prevail in this
over-capacity market, however long and hard the path may be. We are grateful
for the continuing efforts of employees and the further financial support of
affiliates who recognize that our relatively low-cost freight system will
ultimately prevail in this necessary freight market.''
Trailer Bridge will discuss its third quarter results in a conference
call at 10:00 A.M. (Eastern Time) on Thursday, November 15th. The dial in
number is 212-346-7479. The call will simultaneously be broadcast over the
Internet. To listen to the live webcast, please go to www.trailerbridge.com
and click on the conference call link. The conference call will be archived
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. 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. Contact Information: Contact: Trailer Bridge, Inc., Jacksonville
Ralph W. Heim, 800/554-1589
or
(TRBR INVESTOR RELATIONS COUNSEL)
The Equity Group Inc., New York
Devin Sullivan, 212/836-9608
Adam Prior, 212/836-9606
www.theequitygroup.com
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