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
Tax Credit Of $5.0 Million
Increases Fourth Quarter Net Income To $8.9 Million
Jacksonville, FL
– March 30, 2007 --
Trailer Bridge, Inc. (NASDAQ: TRBR)
today reported final fourth quarter as well as audited results for the year
ended December 31,
2006 (see attached table). The sole difference between these results and
the preliminary results previously reported on March 5, 2007 is the effect of an
income tax credit in the amount of $4,975,360 that was recorded in the fourth
quarter as a reduction of the Company’s deferred tax asset valuation allowance.
At December 31, 2006, after this adjustment, a valuation allowance of $6.7
million remains to further decrease income tax expense going forward.
John
D. McCown, Chairman and CEO, said, “In releasing the allowance, formal budgets
are given the most weight and this tax credit was calculated by applying a 38%
tax rate to our 2007 business plan. As
we utilize our deferred tax asset, we are evaluating the merits related to a
tonnage tax election, an alternative that appears to offer permanent income tax
benefits to
The
audited results for 2006 reflected total revenue of $110.2 million, an increase
of 4.1% compared to 2005. Higher revenues
were driven by an increase in average revenue per southbound container of 5.9%. The Company's Jacksonville-San Juan deployed
vessel capacity utilization during 2006 was 87.1% to Puerto Rico and 25.6% from
The
Company’s total operating income for 2006 was $4.9 million as compared with $18.3
million in 2005. The key driver of that
$13.4 million reduction was a $12.5 million increase in dry-docking costs. The Company’s Form 10-K is expected to be filed
today with the SEC and will contain a more detailed discussion of the
dry-docking costs and what results would have been if it was accounted for
under the defer and amortize method used by most shipping companies.
Trailer
Bridge’s 2006 results were markedly different in the second half compared to
the first half due to dry-docking expense and its related effect on the
Company’s normal vessel deployment. Total
revenue in the second half was $60.0 million or 19.5% above first half revenue
of $50.2 million. Second half operating
income of $10.9 million was $16.9 million higher than the $6.0 million
operating loss in the first half due primarily to both $12.4 million of
dry-docking expense in the first half and the beneficial effects of the return to
the normal vessel deployment. The
Company believes that the second half is a more relevant period and that it’s 81.9%
operating ratio performance is a more meaningful benchmark of the capability of
its transportation system going forward.
After application of the credit, for
all of 2006 Trailer Bridge reported a net loss of $18,093 compared to net
income of $7.8 million for 2005. Net loss
attributable to common shares for 2006 was $(.00), versus net income of $.64
for 2005.
Financial
Position
At
December 31, 2006, the Company had cash balances of $6.9 million and working
capital of $15.8 million and stockholders equity of
$0.9 million. There were no amounts
outstanding under a $10 million revolving credit facility.
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
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 and its asset utilization. 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 changes in the valuation allowance related to the
deferred tax asset that could cause material changes from audited financial
results, 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
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TRAILER BRIDGE, INC.
STATEMENTS OF OPERATIONS
