Trailer Bridge Reports 2003 Fourth Quarter and Year-End Financial Results Press Release, Friday, May 7, 6:43 pm ET Company Expects Profitable First Quarter Jacksonville, FL -- .--(BUSINESS WIRE)--May 7, 2004--Trailer Bridge, Inc. (NASDAQ: TRBRE - News) Fourth Quarter Highlights
Trailer Bridge, Inc. (NASDAQ: TRBRE - News) today reported financial results for the fourth quarter and year ended December 31, 2003 (see attached tables), highlighted by increased operating revenue and significantly reduced losses. Continuing Market Improvement Expected To Result In Profitable 2004 First Quarter The Company anticipates that it will report net income for the first quarter of 2004, its first quarterly net income in 15 quarters. Since the beginning of 2004, the Company has experienced higher volume and net pricing consistent with what it anticipated in its profit plan for 2004. Trailer Bridge believes that these higher volume and rate levels are sustainable and are being driven by the reduction in trade lane capacity as discussed in detail in previous releases and conference calls along with the superior service and on-time performance delivered by the Company. 2003 Fourth Quarter Results Total revenue for the three months ended December 31, 2003 was $22,061,980, an increase of $1,851,727, or 9.2%, compared to the fourth quarter of 2002. For the quarter, total southbound volume increased 6.3% compared to the year earlier period and total northbound volume increased 7.2%. Core southbound trailer volume increased 9.7% while new and used car volume declined 7.1% and 10.0% compared to the year earlier period. The effective yield of all of the southbound cargo represented an increase of 1.2% from the year earlier period. Northbound, the effective yield increased 9.5% from the year ago period. The Company's Jacksonville-San Juan deployed vessel capacity utilization overall during the fourth quarter was 89.4% to Puerto Rico and 21.9% from Puerto Rico compared to 86.6% and 19.9%, respectively, during the year earlier period. The Company had an average of 175 tractor units operating on the mainland during the quarter, generating an average of 8,593 miles per month of which 72.6% were loaded. Losses Narrow Trailer Bridge's operating loss for the fourth quarter ended December 31, 2003 was $702,888, an improvement of $926,392 from an operating loss of $1,629,280 in the prior year period. Included in fourth quarter expenses was a $243,611 expenditure related to the full dry-docking costs of one of the Company's Triplestack Box Carrier® vessels that will not require another dry-docking for five years. It is the Company's policy to fully expense all dry-docking costs during the period in which they are incurred. The operating ratio was 103.2% during the fourth quarter of 2003 compared to the 108.0% operating ratio during the year earlier period. Net interest expense of $707,754 decreased 7.7% from the year earlier period due to less debt and lower interest rates. The Company's loss before income taxes for the fourth quarter ended December 31, 2003 was $1,410,642 compared to a pre-tax loss of $2,396,164 in the year earlier period. The effect of income taxes will not be reflected until full profitable results resume. After accretion of preferred stock discount and undeclared cumulative dividend, the net loss attributable to common shares for the fourth quarter of 2003 narrowed to $1,865,480, or $.19 per diluted share, from a net loss to common shares of $2,818,260, or $.29 per diluted share, in the year earlier period. On April 23rd, the Company finalized all documents related to its $20 million refinancing with Congress Financial Corporation as agent. Trailer Bridge is current with all of its debt obligations, including the Title XI debt where Trailer Bridge has made a $1.4 million payment which fully addresses the interest and principal due on March 31, 2004. At December 31, 2003, Trailer Bridge had total cash of $424,961, current assets of $13.3 million and stockholders' equity of $4.6 million. Trailer Bridge's current assets of $13.3 million were below total current liabilities of $15.4 million that included $.4 million in obligations that come due in early 2004. John D. McCown, Chairman and CEO, said, "Volume at the end of last year was lower than we expected, but since mid-January our volume level has been very robust. This strength is accompanied by continuing rate increases as contracts are renewed. I believe we have resolutely turned the corner and this will be underscored by the Company's actual performance going forward in this now rapidly improving market in 2004." Trailer Bridge will issue its first quarter financial results on Friday, May 14th prior to the opening of the stock market. The Company will discuss these results in a conference call later that morning at 10:00 A.M. (Eastern Time). The dial in number is 800-915-4836. The call will also be simultaneously 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 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 that the Company will be granted a favorable outcome regarding its request for continued listing on the Nasdaq Small Cap Market, economic recessions, the generation and maintenance of sufficient liquidity, severe weather, changes in demand for transportation services offered by the Company, capacity conditions in the Puerto Rico lane and changes in rate levels for transportation services offered by the Company. TRAILER BRIDGE, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months
Ended December 31,
-------------------------
2003 2002
------------ ------------
OPERATING REVENUES $22,061,980 $20,210,253
OPERATING EXPENSES:
Salaries wages, and benefits 4,023,757 3,879,600
Rent and purchased transportation:
Related Party 1,849,200 1,849,200
Other 6,048,075 6,211,293
Fuel 2,302,186 2,070,882
Operating and maintenance (exclusive of
depreciation shown
separately below) 5,849,670 4,942,195
Taxes and licenses 171,744 205,779
Insurance and claims 748,719 821,643
Communications and utilities 126,123 109,968
Depreciation and amortization 834,944 815,581
(Gain) loss on sale of equipment (7,896) (8,596)
Other operating expenses 818,346 941,988
------------ ------------
22,764,868 21,839,533
------------ ------------
OPERATING INCOME (LOSS) (702,888) (1,629,280)
NONOPERATING INCOME (EXPENSE):
Interest expense and other, net (707,754) (766,884)
------------ ------------
LOSS BEFORE BENEFIT FOR INCOME TAXES (1,410,642) (2,396,164)
BENEFIT FOR INCOME TAXES - -
------------ ------------
NET LOSS (1,410,642) (2,396,164)
ACCRETION OF PREFERRED STOCK DISCOUNT (172,709) (422,096)
UNDECLARED CUMULATIVE DIVIDEND (282,129) -
------------ ------------
NET LOSS ATTRIBUTABLE TO
COMMON SHARES $(1,865,480) $(2,818,260)
============ ============
PER SHARE AMOUNTS:
NET LOSS PER SHARE (BASIC AND DILUTED) $ (0.19) $ (0.29)
============ ============
WEIGHTED AVERAGE
SHARES OUTSTANDING 9,781,266 9,777,500
============ ============
Twelve Months
Ended December 31,
-------------------------
2003 2002
------------ ------------
OPERATING REVENUES $86,433,985 $75,953,616
OPERATING EXPENSES:
Salaries wages, and benefits 15,835,917 15,218,526
Rent and purchased transportation:
Related Party 7,336,500 7,336,500
Other 24,435,491 21,587,340
Fuel 8,965,680 7,396,815
Operating and maintenance (exclusive of
depreciation shown
separately below) 21,743,396 17,840,809
Taxes and licenses 706,303 602,742
Insurance and claims 2,988,770 3,036,622
Communications and utilities 508,228 577,320
Depreciation and amortization 3,392,742 3,383,002
(Gain) loss on sale of equipment (27,961) (101,862)
Other operating expenses 3,144,385 3,112,174
------------ ------------
89,029,451 79,989,988
------------ ------------
OPERATING INCOME (LOSS) (2,595,466) (4,036,372)
NONOPERATING INCOME (EXPENSE):
Interest expense and other, net (2,859,624) (3,063,096)
------------ ------------
LOSS BEFORE BENEFIT FOR INCOME TAXES (5,455,090) (7,099,468)
BENEFIT FOR INCOME TAXES - (3,305)
------------ ------------
NET LOSS (5,455,090) (7,102,773)
ACCRETION OF PREFERRED STOCK DISCOUNT (980,745) $ (643,871)
UNDECLARED CUMULATIVE DIVIDEND (846,385)
------------ ------------
NET LOSS ATTRIBUTABLE TO
COMMON SHARES $(7,282,220) $(7,746,644)
============ ============
PER SHARE AMOUNTS:
NET LOSS PER SHARE (BASIC AND DILUTED) $ (0.74) $ (0.79)
============ ============
WEIGHTED AVERAGE
SHARES OUTSTANDING 9,778,391 9,777,500
============ ============
Contact: Trailer Bridge, Inc.
Ralph W. Heim,
President & C.O.O.
800/554-1589
or
TRBR Investor Relations Counsel:
The Equity Group Inc.
Adam Prior, 212/836-9606
Devin Sullivan, 212/836-9608
www.theequitygroup.com
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