1998 First Quarter ResultsTrailer Bridge, Inc. Press Release Contact: Mark A. Tanner Trailer Bridge Reports First Quarter Results JACKSONVILLE, Fla. -- Trailer Bridge, Inc. reported total revenue of $16,347,403 for the three months ended March 31, 1998, a decrease of $98,663 or .6% compared to the first quarter of 1997. While core trailer volume to Puerto Rico increased 16.7% compared to the year earlier period, total car and other vehicle volume was down 20.9% compared to the year earlier period. As a result, core trailer revenue to Puerto Rico increased $649,679 or 8.6% compared to the year earlier period and car and other vehicle revenue decreased $859,856 or 19.5% compared to the year earlier period. This reduction in vehicle revenue was due primarily to a 41.5% reduction in the level of used car shipments during the quarter as sales of used cars in Puerto Rico continued to be soft. New car shipments were 10.6% higher. During the first quarter, approximately 60% of Trailer Bridge’s car volume was represented by new cars. Compared to the fourth quarter of 1997, total car and other vehicle volume decreased 3.8%. Revenue from shipper owned or leased equipment moving to Puerto Rico increased $369,707 or 41.1% primarily due to an increase in flatbed volume. While trailer volume from Puerto Rico increased 6.5%, related revenue decreased $331,760 or 13.9% compared to the year earlier period due to continued rate pressure on the limited volumes moving inbound from Puerto Rico. Non-Puerto Rico revenue of $1,172,083 represented an increase of 9.8%. First quarter operating income was $286,042 a decrease of $1,461,857 or 83.6% from the $1,747,899 operating income in the year earlier period. Operating income was lower primarily because, while total revenue was flat, Trailer Bridge incurred approximately $900,000 in fixed marine costs related to the operation of the first new Triplestack Box CarrierÔ during most of the quarter. The continuing weakness in used car volume and increasing competitive pressures on overall freight rates were also contributing factors. As a result, Trailer Bridge’s operating ratio was 98.3% during the first quarter of 1998 compared to the 89.4% operating ratio during the year earlier quarter. Net interest expense of $185,597 was down $77,819 or 29.5% as a result of an increase in earnings from temporary investments. During the quarter, Trailer Bridge also had a gain of $28,510 related to the sale of older trailer equipment. Income before income taxes for the first quarter was $128,955, a decrease of $1,355,528 or 91.3% from the year earlier period. After income taxes, net income for the first quarter was $69,156, or 92.4% below proforma net income of $909,263 for the year earlier period during which Trailer Bridge operated as an S Corporation. After the increase in average shares outstanding, net income per share was .01 for the first quarter compared to .13 for the year earlier period. The Company's financial condition was strong at the end of the quarter. At March 31, 1997, available cash amounted to $6.6 million, working capital was $5.9 million and stockholders equity was equal to $33.9 million. Volume to Puerto Rico excluding cars and other vehicles grew 24.6% compared to last year, an increase in line with capacity growth. Heightened rate activity and continued weakness in the volume of used car shipments overshadowed this build-up in volume and led to a 10.9% reduction in the overall average yield per unit on Trailer Bridge’s Puerto Rico business compared to the same period last year. The Company’s overall vessel capacity utilization during the quarter was 52%, its lowest since 1992 and well below the 74% capacity utilization achieved in 1995. John D. McCown, Chairman and CEO, said: "As we build volume, we are mindful of the pitfalls of short-term strategies. Our focus will continue to be on the long term sustainable benefits our transportation system offers to customers. Our first Triplestack Box CarrierÔ , the CHICAGO BRIDGE, went into service in January and our second, the CHARLOTTE BRIDGE, was deployed two weeks ago. With full twice-weekly service to Puerto Rico, we remove the inefficiencies that existed as a result of an unbalanced schedule. We are pleased with the performance of this innovative transportation system – for which we have filed patent protection – and the progressive trend in our results within the quarter. These vessels represent 30 year assets, the benefits from which will accrue to Trailer Bridge well into the next century." 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, containers, 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.
|
||||||||||||||||||||||||||||||||||
|
