JACKSONVILLE, Fla.--(BUSINESS WIRE)--November 9, 2005--Trailer Bridge, Inc. (NASDAQ National Market: TRBR - news)--
Q3 2005 Highlights
Trailer Bridge, Inc. (NASDAQ: TRBR - News) today reported the financial results for the third quarter ended September 30, 2005 (see attached table), highlighted by net income attributable to common shares of $1,586,030, a $931,499 improvement compared to the third quarter of 2004, and a 9.5% increase in revenue.
Total revenue for the three months ended September 30, 2005 was $26,213,734, an increase of $2,274,885, or 9.5%, compared to the third quarter of 2004. The average revenue per load for core southbound containers moving southbound represented an increase of 8.0% from the year earlier period and an increase of 0.6% compared sequentially to the second quarter.
The Company's Jacksonville-San Juan deployed vessel capacity utilization during the second quarter was 84.1% to Puerto Rico and 22.9% from Puerto Rico compared to 94.9% and 28.6%, respectively, during the third quarter of 2004. The reduction in southbound utilization was driven by a 30.6% decline in car volume and a 20.7% decrease in movements of shipper owned equipment, primarily flatbeds. Conversely, core southbound container volume increased 1.2% compared to the year earlier period.
The operating income for the third quarter ended September 30, 2005 was $4,265,371, an improvement of $2,288,446 compared to operating income of $1,976,925 in the prior year period. The operating ratio improved to 83.7% during the third quarter of 2005, compared to an operating ratio of 91.7% during the year earlier period. Operating expenses during the third quarter included a $180,480 loss on the sale of assets, consisting primarily of used tractors as part of the upgrade of the Company's tractors to lower maintenance and more fuel-efficient 2003 models. Net interest expense was $2,586,926 during the third quarter of 2005, compared to $825,453 in the year earlier quarter, and reflects the $85 million public bond offering at the end of 2004 that funded the acquisition of affiliate K Corp. and various assets.
Income before provision for income taxes increased $527,973 from the year earlier period. The third quarter income statement does reflect a $92,415 tax provision which is primarily related to alternative minimum tax against which the Company's substantial net operating loss carryforward cannot be utilized. At December 31, 2004, the deferred tax asset was $20,954,047 but a 100% valuation allowance precluded it from appearing on the balance sheet.
Net income for the third quarter of 2005 was $1,586,030, an improvement of $431,825, or 37.4%, compared to net income of $1,154,205 in the same period last year. After the effect of the prior year's preferred stock items that were redeemed as part of the K. Corp. acquisition, net income attributable to common shares of $1,586,030 increased $931,499 or 142% compared to the year earlier period. The Company recorded net income per diluted share of $.13 in the third quarter of 2005 compared to $.06 in the third quarter of 2004.
At September 30, 2005, Trailer Bridge's balance sheet reflected cash of $10.7 million, working capital of $12 million and a current ratio of 1.83:1.
John D. McCown, Chairman and CEO, said, "We were pleased with our growth on both the top and bottom line, having achieved our tenth consecutive quarter of year-over-year improvement in net income. However, our earnings were adversely affected by a decline in car and other specialized shipments and the spike in fuel prices prior to our increased fuel surcharge going into effect. We are addressing each of those areas and do not find the third quarter's vessel utilization figures acceptable or indicative of what we'll report going forward. Meanwhile, pricing in our core southbound container business continues to improve and the underlying trends within the trade lane remain favorable. We continue to feel that our superior business model and differentiated assets provide tangible competitive advantage, and look forward to the future with confidence."
Trailer Bridge will discuss third quarter results in a conference call today, Wednesday, November 9th, 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, or go directly to http://audioevent.mshow.com/254406/. 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, environmental and safety benefits to cargo in those traffic lanes. 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.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
------------------------- -------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
OPERATING REVENUES 26,213,734 23,938,849 77,759,002 70,950,478
OPERATING EXPENSES:
Salaries, wages,
and benefits 3,877,486 3,718,282 12,082,373 11,380,660
Rent and
purchased
transportation:
Related Party - 1,849,200 - 5,507,400
Other 5,458,797 5,905,275 16,048,646 17,194,071
Fuel 3,786,714 2,484,525 9,878,799 7,156,918
Operating and
maintenance
(exclusive of
depreciation
shown
separately
below) 5,692,677 5,514,750 17,430,029 17,125,726
Taxes and
licenses 14,812 50,819 261,262 136,538
Insurance and
claims 785,906 818,549 2,370,187 2,398,131
Communications
and utilities 113,237 120,830 372,856 371,979
Depreciation and
amortization 1,119,793 598,874 3,186,406 2,276,564
Loss (Gain) on
sale of assets 180,480 (25,529) 457,543 (8,370)
Other operating
expenses 918,461 926,349 2,780,674 2,720,924
------------ ------------ ------------ ------------
21,948,363 21,961,924 64,868,775 66,260,541
------------ ------------ ------------ ------------
OPERATING INCOME 4,265,371 1,976,925 12,890,227 4,689,937
NONOPERATING
EXPENSE:
Interest expense (2,647,267) (825,453) (7,870,855) (2,190,483)
Interest income 60,341 - 143,844 -
------------ ------------ ------------ ------------
INCOME BEFORE
BENEFIT
(PROVISION) FOR
INCOME TAXES 1,678,445 1,151,472 5,163,216 2,499,454
(PROVISION) BENEFIT
FOR INCOME TAXES (92,415) 2,733 (91,092) 2,733
------------ ------------ ------------ ------------
NET INCOME 1,586,030 1,154,205 5,072,124 2,502,187
ACCRETION OF
PREFERRED STOCK
DISCOUNT - (131,991) - (437,235)
UNDECLARED DIVIDEND - (367,683) - (974,426)
------------ ------------ ------------ ------------
NET INCOME
ATTRIBUTABLE TO
COMMON SHARES $ 1,586,030 $ 654,531 $ 5,072,124 $ 1,090,526
============ ============ ============ ============
PER SHARE AMOUNTS:
NET INCOME PER
SHARE BASIC $ 0.13 $ 0.06 $ 0.43 $ 0.09
============ ============ ============ ============
NET INCOME PER
SHARE DILUTED $ 0.13 $ 0.06 $ 0.41 $ 0.09
============ ============ ============ ============
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
Devin Sullivan, 212-836-9608
www.theequitygroup.com