Press Release
Trailer Bridge Reports Final Fourth Quarter and Audited 2006
Results
Friday March 30, 10:45 am ET
Tax
Credit Of $5.0 Million Increases Fourth Quarter Net Income To $8.9 Million
JACKSONVILLE, Fla.--(BUSINESS
WIRE)--Trailer Bridge, Inc. (NASDAQ: TRBR - News) 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 Trailer Bridge."
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
Puerto Rico compared to 88.9% and 22.9%, respectively, during 2005. For the
first six and a half months of 2006, one of the two roll-on, roll-off vessels
were sequentially out of service while being dry-docked and Triplestack
Box Carrier vessels acted as substitutes.
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
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
Three Months Twelve Months
Ended December 31, Ended December 31,
-------------------------
---------------------------
2006 2005 2006 2005
------------ ------------
------------- -------------
OPERATING
REVENUES
$31,113,429 $28,099,615 $110,249,949
$105,858,617
OPERATING
EXPENSES:
Salaries,
wages, and
benefits
3,948,056 4,001,960 15,135,860 16,084,332
Rent and
purchased
transportation:
Other 7,269,395 5,937,089
26,003,083 21,985,735
Fuel 3,724,507 3,951,998
14,704,320 13,830,796
Operating and
maintenance
(excluding
depreciation
below)
6,034,698 5,554,912 22,570,884 22,727,418
Dry-Docking 184,515 34,646
12,765,606 292,167
Taxes and
licenses
113,711 78,164 426,419 339,426
Insurance and
claims
1,016,665 842,963 3,685,332 3,213,150
Communications
and utilities
124,030 130,888 507,629 503,744
Depreciation
and
amortization
1,318,521 1,233,288 5,278,337 4,419,694
(Gain) loss on
sale of
assets
(194,489) 51,081 (113,067) 508,624
Other
operating
expenses
1,186,719 922,553 4,434,212 3,703,230
------------ ------------ -------------
-------------
24,726,328 22,739,542
105,398,615 87,608,316
------------ ------------
------------- -------------
OPERATING INCOME 6,387,101
5,360,073 4,851,334 18,250,301
NONOPERATING
(EXPENSE)
INCOME:
Interest
expense
(2,587,201) (2,655,082) (10,249,671)
(10,525,939)
Interest
income
82,980 83,691 412,876 227,535
-------------------------
---------------------------
INCOME (LOSS)
BEFORE BENEFIT
(PROVISION) FOR
INCOME TAXES 3,882,880 2,788,682
(4,985,461) 7,951,897
BENEFIT
(PROVISION) FOR
INCOME TAXES 4,975,496 (26,440) 4,967,368 (117,532)
------------ ------------
------------- -------------
NET INCOME
(LOSS)
ATTRIBUTABLE TO
COMMON SHARES $8,858,376
$2,762,242 $(18,093) $7,834,365
============ ============
============= =============
PER SHARE
AMOUNTS:
NET INCOME
(LOSS) PER
SHARE
BASIC $0.75 $0.23 $(0.00) $0.67
============ ============
============= =============
NET INCOME
(LOSS) PER
SHARE DILUTED $0.72 $0.22 $(0.00) $0.64
============ ============
============= =============
SHARES
OUTSTANDING
BASIC 11,786,997 11,771,156
11,782,771 11,769,037
============ ============
============= =============
SHARES
OUTSTANDING
DILUTED 12,290,946 12,306,321
11,782,771 12,312,948
============ ============
============= =============
Contact:
Trailer Bridge, Inc.
John D. McCown, 800-554-1589
Chairman & CEO
OR
TRBR Investor Relations Counsel:
The Equity Group Inc.
Adam Prior, 212-836-9606
Devin Sullivan, 212-836-9608