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Press Release
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Trailer Bridge Reports First Quarter Results |
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Quarterly
Revenues Increase 6.2% to $26.8 Million; Net Income Rises to $1.3 Million, or
$0.11 Per Share |
Company to Conduct Conference Call Today at 4:30 PM ET
JACKSONVILLE, Fla.--(BUSINESS WIRE)--Trailer Bridge, Inc. (NASDAQ: TRBR - News) today reported financial results for the first quarter ended March 31, 2007 (see attached table). These results include the expected effect of the tonnage tax election that will be utilized by the Company for 2007 and future tax periods.
John D.
McCown, Chairman and CEO, said, "We achieved improved quarterly results
even with transition delays related to a couple of key new contract awards. For
14 out of the last 16 quarterly periods, our year-over-year net income has
increased. We've announced an expansion that we're very enthusiastic about
which includes a further investment in differentiated assets. Investment in
hard assets will always be a priority and we aim to be in a continuous process
of building on our competitive advantages. Trailer Bridge has a unique
operating model and is well placed for further expansion and progress."
Total
revenue for the three months ended March 31, 2007 was $26.8 million, an increase
of 6.2% from the first quarter of 2006. Higher revenues were driven by
increases in southbound car volume and specialized shipments along with
increases in northbound container volume. The Company's Jacksonville-San Juan
deployed vessel capacity utilization during the first quarter was 80.3% to
Puerto Rico and 24.6% from Puerto Rico
The
Company's operating income was $3.8 million in the first quarter of 2007, as
compared with $0.5 million in the first quarter of 2006 which was burdened with
$3.1 million of dry-docking costs. The operating ratio was 86.0% for the first
quarter compared to 98.1% during the year earlier quarter.
Net
income for the first quarter of 2007 rose $3.1 million
to $1.3 million from a net loss of $1.8 million in the year earlier period. Net
income attributable to common shares for the first quarter of 2007 was $.11,
versus a $.15 loss per share for the first quarter of 2006.
Trailer
Bridge intends to make a tonnage tax election for 2007 that it believes will
result in a significant and permanent reduction in the Company's effective
federal tax rate. The Company's effective federal tax rate during the first
quarter of 2007 was less than 1%. Trailer Bridge anticipates that its effective
tax rate on a run rate basis will be less than 1% going forward.
Financial
Position
At March
31, 2007, the Company had cash balances of $10.7 million and working capital of
$16.4 million. Compared to December 31, 2006, cash increased $3.8 million
during the quarter. This cash increase was driven by cash from operations
during the quarter of $6.4 million, which was $2.3 million above cash from
operations in the year earlier period.
Conference
Call
Trailer
Bridge will discuss first quarter results in a conference call today, May 15,
2007, at 4:30 PM (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://investor.shareholder.com/media/eventdetail.cfm?mediaid=25590&c=
TRBR&mediakey=52FB9ED0D7DDB9C98DBE3BD9D5AAF39C&e=0.
(Due to length, this URL may need to be copied/pasted into your Internet
browser's address field. Remove the extra space if one exists.) 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 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 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
Ended March 31,
--------------------------
2007 2006
------------ ------------
OPERATING REVENUES $26,840,504 $25,275,197
OPERATING EXPENSES:
Salaries, wages, and benefits 3,981,655 3,690,611
Rent and purchased transportation 6,350,839 5,771,995
Fuel
3,608,450 3,442,653
Operating and maintenance (exclusive of
depreciation & dry-docking shown
separately below) 5,444,733 5,414,569
Dry-Docking 4,544 3,121,962
Taxes and licenses 43,835 81,184
Insurance and claims 840,769 817,487
Communications and utilities 176,453 116,747
Depreciation and amortization 1,375,761 1,319,831
Loss on sale of assets 51,164 22,732
Other operating expenses 1,202,406 984,588
------------ ------------
23,080,609 24,784,359
------------ ------------
OPERATING INCOME 3,759,895 490,838
NONOPERATING (EXPENSE) INCOME:
Interest expense
(2,619,678) (2,442,074)
Interest income 191,826 135,155
--------------------------
INCOME (LOSS) BEFORE (PROVISION) FOR INCOME
TAXES
1,332,043 (1,816,081)
(PROVISION) FOR INCOME TAXES (6,454) (8,010)
------------ ------------
NET INCOME (LOSS) $ 1,325,589 $(1,824,091)
============ ============
PER SHARE AMOUNTS:
NET INCOME (LOSS) PER SHARE BASIC $ 0.11
$ (0.15)
============ ============
NET INCOME (LOSS) PER SHARE DILUTED $
0.11 $ (0.15)
============ ============
WEIGHTED AVERAGE
SHARES OUTSTANDING BASIC 11,788,466
11,779,259
============ ============
SHARES OUTSTANDING DILUTED 12,309,778 11,779,259
============ ============
Contact:
Trailer Bridge, Inc.
John D. McCown
Chairman & CEO
800-554-1589
or
TRBR Investor Relations Counsel:
The Equity Group Inc.
Adam Prior, 212-836-9606
Devin Sullivan, 212-836-9608