1999 First Quarter ResultsTrailer Bridge, Inc. Press Release Contact: Mark A. Tanner Trailer Bridge Reports First Quarter Results JACKSONVILLE, Fla. -- Trailer Bridge,
Inc. (TRBR)
reported total revenue of $22,750,604 for the three months ended March 31, 1999,
an increase of $6,403,201 or 39.2% compared to the first quarter of 1998. Based upon the
deployment of an additional vessel, Trailer Bridge had 29.8% more overall vessel capacity
deployed to Puerto Rico compared to the first quarter of 1998. Core trailer volume to Puerto
Rico increased 71.8% compared to the year earlier period and total car and other vehicle
volume was up 35.8% compared to the year earlier period. As a result, core trailer revenue
to Puerto Rico increased $5,454,116 or 63.8% compared to the year earlier period and car and
other vehicle revenue increased $875,464 or 24.7% compared to the year earlier period.
Compared to the fourth quarter of 1998, core trailer volume to Puerto Rico decreased 7.6%
and total car and other vehicle volume decreased 17.9%. Trailer Bridge had 4.8% less overall
vessel capacity deployed to Puerto Rico compared to the fourth quarter. For the first quarter,
revenue from shipper owned or leased equipment moving to Puerto Rico increased $201,512 or
15.9% from the year earlier period. Volume from Puerto Rico increased 14.2% while related
revenue increased $222,116 or 10.8% compared to the first quarter of 1998. Compared to the
fourth quarter of 1998, volume from Puerto Rico increased 2.7%. Non-Puerto Rico revenue of
$1,087,689 represented a decrease of 12.1% from the first quarter of 1998 and an increase of
15.7% from the fourth quarter of 1998.
First quarter operating loss was $2,078,435 a decrease of $2,364,477 from the $286,042
operating income in the year earlier period and an improvement of $1,266,336 from the
operating loss in the fourth quarter of 1998. Operating income was lower compared to the
year earlier period primarily due to approximately $2.4 million of additional costs related
to the disruption resulting from the loss of use of the San Juan ramp structure due to
Hurricane Georges. The favorable impact of the increased volume was offset by reduced rate
levels and the impact of the new coastwise service. Compared to the fourth quarter of 1998,
operating income was higher primarily due to $1.0 million less of costs related to the
disruption resulting from the loss of use of the San Juan ramp structure. As a result,
Trailer Bridge’s operating ratio was 109.1% during the first quarter of 1999 compared to the
98.3% operating ratio during the year earlier period and the 114.2% during the fourth quarter
of 1998. Net interest expense of $652,793 was up $467,196 from the year earlier period that
included significant interest income on short-term investments. During the first quarter of
1999, Trailer Bridge also had a gain of $30,417 related to the sale of older trailer
equipment. The $2,382,910 of estimated additional costs related to the hurricane situation included
$1,176,823 in operating and maintenance costs (comprised primarily of stevedoring and port
related items), $1,005,230 in rent and purchased transportation (comprised primarily of
terminal equipment rental, trucking expense in San Juan and the U.S. and revenue equipment
rental), $121,523 in salaries and wages, $17,448 in insurance and claims and $61,886 in
communications and other operating expenses. The inability to utilize the San Juan ramp necessitated alternative methods of discharging
and re-loading the two roll-on, roll-off vessels that quadrupled cargo operations time while
at the same time reducing available vessel space. The resulting schedule tightness and
uncertainty exacerbated costs beyond those directly related to San Juan cargo operations,
including trucking costs on the mainland. The Company's goal during this period of
disruption was to continue to provide a high level of service to customers despite
certain adverse cost consequences. The new Triplestack Box Carriers™ now deployed
in Puerto Rico do not utilize the floating ramp structure and were not adversely
affected by Hurricane Georges. The ramp structure was re-floated on January 11.
Following repairs, including filling tanks with permanent flotation foam, it was
utilized for partial cargo operations on March 19 and full cargo operations in
mid-April. Loss before income taxes for the first quarter was $2,700,811, a decrease of $2,829,766
from the year earlier period. After income taxes, net loss for the first quarter was
$1,683,679, which was well below net income of $69,156 for the year earlier period. Basic
net loss per share was $.17 for the first quarter compared to basic net income per share of
$.01 for the year earlier period and net loss per share of $.24 for the fourth quarter of
1998. As of March 31, 1999 and 1998, there were no common shares issuable which were
potentially dilutive. At March 31, 1999, available cash amounted to $3.9 million, working capital was $2.6
million and stockholders equity was equal to $29.7 million. For the first quarter of 1999, total volume to Puerto Rico including cars and other
vehicles grew 55.5% compared to the same period last year, well above the 29.8% increase
in deployed vessel capacity. Total volume from Puerto Rico grew only 14.2% or less than
half the growth in deployed vessel capacity. During that period, total revenue to and from
Puerto Rico increased 48.5% and 10.8%, respectively, implying reductions 4.5% and 3.0%,
respectively, in the overall average yield on Trailer Bridge's Puerto Rico business compared
to the same period last year. Compared to the fourth quarter of 1998, the overall average
yield on Trailer Bridge's business to Puerto Rico increased 1.4% and the overall average
yield on business from Puerto Rico increased 2.2%. The Company's Puerto Rico deployed
vessel capacity utilization during the first quarter was 88.1% to Puerto Rico and 26.8%
from Puerto Rico. These were generally above comparable figures of 73.5% and 87.8% to
Puerto Rico and 30.5% and 25.5% from Puerto Rico during the first and fourth quarters
of 1998, respectively. They are, however, well below the benchmark utilization of 96.0%
and 51.6% to and from Puerto Rico achieved during all of 1995. John D. McCown, Chairman and CEO, said: "Our ramp trauma is now behind us. We encourage
you to measure our progress as we move towards a future that we optimistically
embrace." Trailer Bridge provides integrated trucking and marine freight service to and from all
points in the lower 48 states and Puerto Rico as well as a coastwise service connecting
the Northeast and the Southeast. This total transportation system utilizes its own trucks,
drivers, trailers, containers, vessels and marine facilities in Jacksonville, New York and
San Juan. Trailer Bridge's founder and majority stockholder is Malcom P. McLean, the
transportation pioneer who invented containerization forty years ago. 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, changes in demand for transportation services offered by the Company, and changes
in rate levels for transportation services offered by the Company. |
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