Press Release, Thursday, March 31, 7:58 AM ET Trailer Bridge Announces Fourth Quarter Results JACKSONVILLE, Fla.--(BUSINESS WIRE)--Nov. 9, 2004--Trailer Bridge, Inc. (NASDAQ: TRBR - News)Q4 '04 Highlights Versus Q4 '03
Trailer Bridge, Inc. (NASDAQ: TRBR - News) today reported financial results for the fourth quarter ended December 31, 2004 (see attached table), highlighted by net income of $1.9 million, a $3.3 million improvement compared to the fourth quarter of 2003. Total revenue for the three months ended December 31, 2004 was $27.8 million, an increase of $5.8 million, or 26.1%, compared to the fourth quarter of 2003. The effective revenue per load for containers moved southbound increased 7.4% from the year earlier period. The Company's Jacksonville-San Juan deployed vessel capacity utilization during the fourth quarter was 103.8% to Puerto Rico and 24.5% from Puerto Rico compared to 91.0% and 21.9%, respectively, during the fourth quarter of 2003. The Company was able to consistently achieve higher utilization on its Triplestack Box Carrier® vessels during the quarter as high load volume allowed it to optimize its cargo mix and have container stack heights above previous experienced capacity. The operating income for the fourth quarter ended December 31, 2004 rose to $3.9 million, an improvement of $4.6 million compared to the operating loss of $0.7 million in the prior year period. The operating ratio improved to 86.0% during the fourth quarter of 2004, compared to an operating ratio of 103.2% during the year earlier period. Net income for the fourth quarter of $1.9 million represented an improvement of $3.3 million compared to the net loss of $1.4 million in the year earlier period. Accounting conventions require preferred stock adjustments totaling $676,279 that reduced net income attributable to common shares. Based upon the completed K Corp. purchase, the preferred stock has now been extinguished. Net income attributable to common shares for the fourth quarter of 2004 was $1.3 million, an improvement of $3.1 million compared to a net loss attributable to common shares of $1.9 million in the same period last year. The Company recorded net income per diluted common share of $.10 in the fourth quarter of 2004, an improvement of $.29 per share, compared to a net loss per diluted common share of $.19 in the year earlier period. On a pro forma basis, excluding the preferred stock adjustments related to the preferred stock that no longer exist, net income per diluted common share would have been $.16 in the fourth quarter of 2004, a $.30 improvement compared to the fourth quarter of 2003. Q4 2004 Q4 2003
(amounts in thousands,
except per share data)
Net Income attributable to common shares
(as reported) $ 1,262 $ (1,865)
Add back: All Preferred Stock Adjustments 676 455
------------ ------------
Pro Forma Net income attributable to common
shares $ 1,938 $ (1,410)
Pro Forma Net income attributable to common
shares per diluted share $ 0.16 $ (0.14)
John D. McCown, Chairman and CEO, said, "The effects of an improving supply/demand equation are evident in our actual fourth quarter results. The sequentially ever-larger improvement in bottom line performance throughout each quarter this year was driven by the factors we have discussed in the past. In the fourth quarter, we also began to experience benefits from the transforming events related to the acquisition of our K Corp. affiliate and previously leased assets along with the bond offering that funded those series of transactions. We believe that the microeconomic trends in our sector will benefit us further and are buoyed by what our actual fourth quarter performance says about our future potential." Mr. McCown participated in an in-depth interview that was recently published in The Wall Street Transcript where he talked at length about Trailer Bridge and its prospects for the future. The interview is available on the Company's website and can be accessed with the following link: Wall Street Transcript Interview. Trailer Bridge will discuss fourth quarter results in a conference call today, March 31, 2005, at 11:00 AM (Eastern Time). The dial in number is 888-737-9834. 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 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.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Twelve Months
Ended December 31, Ended December 31,
------------------------- -------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
OPERATING REVENUES $27,824,188 $22,061,980 $98,774,666 $86,433,985
OPERATING EXPENSES:
Salaries, wages,
and benefits 3,896,786 4,023,757 15,277,446 15,835,917
Rent and purchased
transportation:
Related Party 1,207,463 1,849,200 6,714,863 7,336,500
Other 6,146,685 6,048,075 23,340,757 24,435,491
Fuel 3,045,289 2,302,186 10,202,207 8,965,680
Operating and
maintenance
(exclusive of
depreciation
shown separately
below) 6,431,325 5,849,670 23,557,052 21,743,396
Taxes and licenses 145,945 171,744 282,483 706,303
Insurance and claims 900,329 748,719 3,298,460 2,988,770
Communications
and utilities 152,064 126,123 524,044 508,228
Depreciation and
amortization 805,353 834,944 3,081,916 3,392,742
Loss (Gain) on
sale of equipment (17,113) (7,896) (25,482) (27,961)
Other operating
expenses 1,203,338 818,346 3,924,260 3,144,385
------------ ------------ ------------ ------------
23,917,464 22,764,868 90,178,006 89,029,451
------------ ------------ ------------ ------------
OPERATING INCOME
(LOSS) 3,906,724 (702,888) 8,596,660 (2,595,466)
NONOPERATING EXPENSE:
Interest (Expense) (1,983,809) (707,793) (4,174,300) (2,859,816)
Interest Income 7,235 40 7,244 192
Miscellaneous
Income/(Expense) - - - -
------------ ------------ ------------ ------------
INCOME (LOSS)
BEFORE (PROVISION)
BENEFIT FOR INCOME
TAXES 1,930,150 (1,410,641) 4,429,604 (5,455,090)
BENEFIT (PROVISION)
FOR INCOME TAXES 8,274 11,006
------------ ------------ ------------ ------------
NET INCOME (LOSS) 1,938,424 (1,410,641) 4,440,610 (5,455,090)
ACCRETION OF PREFERRED
STOCK DISCOUNT (78,610) (172,709) (515,845) (980,745)
UNDECLARED CUMULATIVE
DIVIDEND (141,371) (282,129) (1,115,796) (846,385)
EXCESS OF CONSIDERATION
TRANSFERRED TO HOLDERS
OF THE PREFERRED STOCK
OVER THE CARRYING
AMOUNT (456,298) (456,298)
------------ ------------ ------------ ------------
NET INCOME (LOSS)
ATTRIBUTABLE TO
COMMON SHARES 1,262,145 (1,865,479) 2,352,671 (7,282,220)
PER SHARE AMOUNTS:
NET INCOME (LOSS)
PER SHARE BASIC $ 0.11 $ (0.19) $ 0.20 $ (0.74)
============ ============ ============ ============
NET INCOME (LOSS)
PER SHARE DILUTED $ 0.10 $ (0.19) $ 0.19 $ (0.74)
============ ============ ============ ============
Contact: Trailer Bridge, Inc.
John D. McCown, 800-554-1589
www.trailerbridge.com
or
TRBR Investor Relations Counsel:
The Equity Group Inc.
Adam Prior, 212-836-9606
or
Devin Sullivan, 212-836-9608
www.theequitygroup.com
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