1997 Third Quarter Results

Trailer Bridge, Inc. Press Release
For Immediate Release, October 29, 1997

Contact: Mark A. Tanner
Vice President & C.F.O.
Trailer Bridge, Inc.
(800)-554-1589

Trailer Bridge Reports Third Quarter Results

JACKSONVILLE, Fla. -- Trailer Bridge, Inc. reported total revenue of $16,676,100 for the three months ended September 30, 1997, an increase of 2.4% compared to the third quarter of 1996. Puerto Rico revenue of $15,460,675 represented an overall increase of 5.1% from the year earlier period. While core trailer revenue to Puerto Rico increased $2.4 million or 28.4% compared to the year earlier period, car and other vehicle revenue decreased $1.4 million or approximately one-third compared to the year earlier period. This sharp reduction in vehicle revenue was due to an unusually low level of new and used car shipments during the quarter for reasons that are believed to be temporary. Trailer revenue from Puerto Rico decreased $240,329 or 11.3% compared to the year earlier period primarily due to increased rate pressure on the limited volumes moving inbound from Puerto Rico. Non-Puerto Rico revenue of $1,215,425 represented a decrease of 23.3% as available tractor capacity was targeted further towards growing mainland to Puerto Rico revenue requirements.

Third quarter operating income was $1,516,502, an increase of $185,632 or 13.9% from the $1,330,870 operating income in the year earlier period. As a result, Trailer Bridge's operating ratio was 90.9% during the third quarter of 1997, a slight improvement over the 91.8% operating ratio during the year earlier quarter. Interest expense of $240,045 represented a decrease of 18.0% as a result of a reduction in debt following the July 24, 1997 initial public offering. Interest income of $171,976 represented a significant increase from the year earlier period as proceeds from the initial public offering were placed in temporary investments prior to planned capital expenditures. During the third quarter, a $83,577 loss on sale of equipment was recorded related to the sale of telephone equipment and other leasehold improvements resulting from the consolidation of office facilities in a new office building adjacent to the Jacksonville truck terminal.

Income before income taxes for the third quarter was $1,364,856, an increase of $320,270 or 30.7% from the year earlier period. After a net credit for federal and state income taxes of $1.1 million related to a non-recurring, non-cash compensation charge during the second quarter of 1997 (Trailer Bridge operated as an S Corporation until its initial public offering), net income was $2,445,963 or $.28 per share compared to proforma net income of $635,904 or $.10 per share.

The Company's financial condition improved as a result of the initial public offering. At September 30, 1997, cash amounted to $16.9 million, working capital was $18.3 million and stockholders equity amounted to $32.8 million. During the quarter, the Company utilized part of the escrowed proceeds of its $10.5 million Title XI bond offering completed in June, 1997. This obligation, which has a fixed interest rate of 7.07% over a 25 year term, is financing 87.5% of the construction cost of two Triplestack Box Carriers^TM now being built at Halter Marine, Inc. Trailer Bridge began taking delivery of 53' container and chassis equipment related to these vessels late in the third quarter and this equipment is being paid for from available cash balances.

On October 22, 1997, the Maritime Administration issued a commitment letter approving Trailer Bridge's application for issuance of a Title XI guarantee related to the construction of three additional Triplestack Box Carriers^TM which will also be built at Halter Marine, Inc. under fixed priced contracts. The construction of the two Triplestack Box Carriers^TM now being built by Halter Marine, Inc. is proceeding as planned and the delivery of the first vessel will occur in mid-November.

John D. McCown, Chairman and CEO, said: "The growth in our core trailer revenue to Puerto Rico is indicative of the competitive strengths of our unique integrated truckload and vessel system. The sharp reduction in vehicle revenue adversely affected third quarter results but we believe this reduction to be temporary. Our newbuilding plans are proceeding and the initial public offering has positioned the Company well to grow it's superior transportation system in both current and new traffic lanes."

Trailer Bridge provides truckload service to and from all points in the lower 48 states and Puerto Rico. This total transportation system utilizes its own trucks, drivers, trailers, vessels and marine facilities in Jacksonville and San Juan. Trailer Bridge's founder and majority stockholder is Malcom P. McLean, the transportation pioneer who invented containerization forty years ago.

©1998 Trailer Bridge, Inc.