CONTACT: -OR- TRBR INVESTOR RELATIONS
COUNSEL:
Trailer Bridge, Inc. The
Equity Group Inc.
John D. McCown www.theequitygroup.com
Chairman & CEO Adam Prior (212) 836-9606
(800) 554-1589 Devin
Sullivan (212) 836-9608
FOR IMMEDIATE RELEASE
Trailer
Bridge Reports second QUARTER RESULTS
Will Hold Financial Community
Conference Call Today at 4:30 P.M.
Jacksonville,
FL – August 4, 2004 -- Trailer Bridge,
Inc. (NASDAQ: TRBR) today reported the financial results for the second
quarter ended June 30, 2004 (see attached table), highlighted by net income of
$988,823, a $1.7 million improvement compared to the second quarter of 2003,
and a 7.9% increase in total operating revenues.
Total
revenue for the three months ended June 30, 2004 was $24,102,899, an increase
of $1,769,672, or 7.9%, compared to the second quarter of 2003 and an increase
of $1,194,169, or 5.2%, sequentially compared to the first quarter. The
effective revenue per container equivalent of all of the southbound cargo
represented an increase of 6.0% from the year earlier period and an increase of
1.9% compared sequentially to the first quarter.
The
Company's Jacksonville-San Juan deployed vessel capacity utilization during the
second quarter was 91.5% to Puerto Rico and 30.8% from Puerto Rico compared to
94.9% and 26.5%, respectively, during the second quarter of 2003. The operating income for the second quarter
ended June 30, 2004 was $1,716,483, an improvement of $1,637,979 compared to
the operating income of $78,504 in the prior year period. The operating ratio was 92.9% during the
second quarter of 2004, compared to an operating ratio of 99.6% during the
second quarter of 2003 and 95.5% during the first quarter of 2004.
Based
upon the Company’s substantial net operating loss carryforward, no income tax
provision has been reflected in the second quarter income statement. At December 31, 2003, the deferred tax asset
was $22,687,373 but a 100% valuation allowance precluded it from appearing on
the balance sheet.
Net
income for the second quarter of 2004 was $988,823, an improvement of
$1,654,165 compared to a net loss of $665,342 in the same period last
year. After the effect of an undeclared
preferred stock dividend and accretion of preferred stock discount related to
the preferred stock held by its Kadampanattu Corp. (“K. Corp.”) affiliate, the
Company recorded net income per diluted common share of $.04 in the second
quarter of 2004 compared to a net loss per diluted common share of $.11 in the
second quarter of 2003 and a net loss per diluted common share of $.01 in the
first quarter.
Trailer
Bridge recently announced an agreement to purchase the stock of its
Kadampanattu Corp. affiliate, from which it presently charters the two roll-on,
roll-off vessels, for $32 million. The
closing of this transaction will cancel the charter as well as the $24 million
of preferred stock held by the affiliate.
The Company anticipates it will be successful in arranging satisfactory financing
to fund this transaction by the end of the year, although there can be no
assurance that this will happen. Upon
the closing of this transaction, there will be an immediate and sharp benefit
to both the Company’s earnings and cash flow, although the precise amount will
depend upon the final structure.
John D. McCown,
Chairman and CEO, said, “It’s an entirely different sector today as the effects
of an improving supply/demand equation continue to roll out. We are now beginning to experience the more
pronounced bottom line effect from increased rates and our net rate increases
are higher when you consider the shorter inland length of haul in the second
quarter. The underlying trends in our
business and the transforming opportunity in the form of closing the K Corp.
transaction have us well positioned for improved results in the future.”
Trailer
Bridge will discuss second quarter results in a conference call today,
Wednesday, August 4th at 4:30 P.M. (Eastern Time). The dial in number is 800-576-0821. 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 30
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, service,
security and environmental and safety benefits to domestic cargo in that
traffic lane. This total transportation system utilizes its own trucks,
drivers, trailers, containers and U.S. flag vessels to link the mainland with
Puerto Rico via 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 the inability
of the Company to obtain the necessary financing to complete the K. Corp.
transaction, the risks of economic recessions, severe weather, changes in the
price of fuel, changes in demand for transportation services offered by the
Company, capacity conditions in the Puerto Rico trade lane and changes in rate
levels for transportation services offered by the Company.
TRAILER BRIDGE, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
