JACKSONVILLE, Fla., May 12, 2009 (GLOBE NEWSWIRE) -- Trailer Bridge, Inc. (Nasdaq:TRBR) today reported unaudited financial results for the first quarter ended March 31, 2009 (see attached table). The Company reported operating income of $1.8 million in the first quarter of 2009, compared with operating income of $0.7 million in the first quarter of 2008 and a net loss of $0.8 million, or $0.06 per share, for the first quarter of 2009 compared to a net loss of $1.8 million, or $0.15 per share, in the year earlier period. EBITDA for the first quarter of 2009 is $3.4 million, a 50.4% improvement compared to the $2.2 million in the year earlier period (See attached table).
Revenue of $25.3 million decreased 16.7% from the first quarter ended March 31, 2008 and decreased 23.9% sequentially. Excluding the effect of fuel surcharges, revenue decreased 10.1% from the prior year and 18.3% from the fourth quarter of 2008. Dominican Republic revenue was approximately $2.0 million, up from $0.6 million in prior year but a 29.2% decrease sequentially. Legal fees associated with the Department of Justice anti-trust investigation and related class action lawsuits were $0.3 million.
Ralph W. Heim, Interim CEO, said, "Our first quarter results were impacted by the softened Puerto Rico market conditions that began in the 4th quarter and continued through the first quarter. However, during the first six weeks of the second quarter we have seen stronger volume and revenue than the first quarter despite continuing overall market weakness. We believe our low cost model provides cost benefits to shippers to and from Puerto Rico and the Dominican Republic that can enhance their competitiveness in these market conditions. Our focus during this period remains on building additional volume, meeting customer needs and managing our costs. We are generating cash and remain liquid as we seek to grow volume and return to profitability."
The Company's deployed vessel capacity utilization during the first quarter was 84.7% southbound and 25.5% northbound, compared to 72.4% and 20.3%, respectively, during the first quarter of 2008. The utilization figures for 2009 are with only four vessels in liner service compared to five vessels in the year earlier quarter. Capacity utilization in the seasonally stronger fourth quarter of 2008 was 92.9% southbound and 23.7% northbound. Overall volume southbound decreased 11% from the same quarter last year and 15% sequentially.
Financial Position
At March 31, 2009, the Company had cash balances of $7.9 million and working capital of $7.9 million. The Company is in compliance with its covenants, has no outstanding amount and, based upon eligible receivables, currently has $9.2 million available on its $10 million revolving credit facility (see Balance Sheet attached). During the quarter net cash from operating activities was $3.5 million (see Cash Flow Statement attached).
Conference Call
Trailer Bridge will discuss first quarter results in a conference call today at 11:00 AM (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 click: http://investor.shareholder.com/media/eventdetail.cfm?mediaid=36676&c=TRBR&mediakey=06EDBAA575599C4C9E05EB010F3B7E20&e=0. The webcast 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 and Dominican Republic, 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, San Juan and Puerto Plata. 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 the risks of economic recessions, the risk of an ongoing Department of Justice investigation into the pricing practices in the Puerto Rico trade, the outcome of related class action lawsuits 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.
CONDENSED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31,
(Unaudited)
2009 2008
------------ ------------
OPERATING REVENUES $ 25,340,915 $ 30,409,242
OPERATING EXPENSES:
Salaries, wages, and benefits 4,205,798 4,204,153
Purchased transportation and other rent 5,662,974 7,770,914
Fuel 3,337,269 7,155,954
Operating and maintenance (exclusive
of depreciation & dry-docking shown
separately below) 5,749,389 6,113,927
Dry-docking 331,281 298,226
Taxes and licenses 163,232 136,432
Insurance and claims 808,041 721,477
Communications and utilities 200,743 182,481
Depreciation and amortization 1,553,126 1,538,919
(Gain) loss on sale of assets (6,272) 67,348
Other operating expenses 1,533,728 1,527,331
------------ ------------
23,539,309 29,717,162
------------ ------------
OPERATING INCOME 1,801,606 692,080
NONOPERATING (EXPENSE) INCOME:
Interest expense (2,642,836) (2,596,909)
Interest income 79,739 46,613
--------------------------
LOSS BEFORE (PROVISION) BENEFIT FOR
INCOME TAXES (761,491) (1,858,216)
(PROVISION) BENEFIT FOR INCOME TAXES (6,543) 35,660
------------ ------------
NET LOSS $ (768,034) $ (1,822,556)
============ ============
PER SHARE AMOUNTS:
NET LOSS PER SHARE BASIC $ (0.06) $ (0.15)
============ ============
NET LOSS PER SHARE DILUTED $ (0.06) $ (0.15)
============ ============
WEIGHTED AVERAGE
SHARES OUTSTANDING BASIC AND DILUTED 11,851,284 11,937,369
============ ============
TRAILER BRIDGE, INC.
CONDENSED BALANCE SHEETS
(Unaudited)
March 31, December 31,
2009 2008
------------- -------------
ASSETS
Current Assets:
Cash and cash equivalents $ 7,946,331 $ 7,216,283
Trade receivables, less allowance
for doubtful accounts of $661,306
and $599,017 13,435,838 16,818,259
Prepaid and other current assets 1,363,818 1,883,942
Deferred income taxes, net 278,856 278,856
------------- -------------
Total current assets 23,024,843 26,197,340
Property and equipment, net 89,439,126 89,304,822
Reserve fund for long-term debt 4,193,548 4,125,995
Other assets 3,852,805 3,704,490
------------- -------------
TOTAL ASSETS $ 120,510,322 $ 123,332,647
============= =============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Accounts payable 3,933,614 $ 5,259,355
Accrued liabilities 6,857,757 7,694,690
Unearned revenue 1,447,340 385,458
Current portion of long-term debt 2,874,700 2,874,700
------------- -------------
Total current liabilities 15,113,411 16,214,203
Other accrued liabilities 311,184 414,910
Long-term debt, less current portion 107,524,327 108,545,228
------------- -------------
TOTAL LIABILITIES 122,948,922 125,174,341
------------- -------------
Commitments and Contingencies
Stockholders' Deficit:
Preferred stock, $.01 par value,
1,000,000, shares authorized;
no shares issued or outstanding -- --
Common stock, $.01 par value,
20,000,000 shares authorized;
11,975,012 and 11,938,921 shares
issued; 11,875,012 and 11,838,921
shares outstanding 119,750 119,389
Treasury stock, at cost, 100,000
shares (400,000) (400,000)
Additional paid-in capital 53,631,550 53,460,783
Capital deficit (55,789,900) (55,021,866)
------------- -------------
TOTAL STOCKHOLDERS' DEFICIT (2,438,600) (1,841,694)
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS'
DEFICIT $ 120,510,322 $ 123,332,647
============= =============
TRAILER BRIDGE, INC.
CONDENSED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31,
(Unaudited)
2009 2008
------------- -------------
Operating activities:
Net loss $ (768,034) $ (1,822,556)
Adjustments to reconcile net loss to
net cash provided by operating
activities:
Depreciation and amortization 1,553,126 1,538,919
Amortization of loan costs 198,800 181,853
Non-cash stock compensation expense 89,923 99,900
Provision for doubtful accounts 190,680 120,294
Deferred tax expense (benefit) -- (42,972)
(Gain) loss on sale of fixed assets (6,272) 67,348
Decrease (increase) in:
Trade receivables 3,191,742 (392,123)
Prepaid and other current assets 520,124 (1,091,382)
Other assets (251,184) (34,219)
Increase (decrease) in:
Accounts payable (1,325,741) (1,193,886)
Accrued liabilities (940,662) 2,723,125
Unearned revenue 1,061,882 749,420
------------- -------------
Net cash provided by operating
activities 3,514,384 903,721
------------- -------------
Investing activities:
Purchases of property and equipment (1,698,940) (22,330)
Proceeds from sale of property and
equipment 23,818 105,991
Additions to other assets (169,519) (26,711)
------------- -------------
Net cash (used in) provided by
investing activities (1,844,641) 56,950
------------- -------------
Financing activities:
Exercise of stock options 81,205 (19,213)
Principal payments on notes payable (1,020,900) (794,524)
------------- -------------
Net cash used in financing
activities (939,695) (813,737)
------------- -------------
Net increase in cash and cash
equivalents 730,048 146,934
Cash and cash equivalents, beginning
of the period 7,216,283 1,932,535
------------- -------------
Cash and cash equivalents, end
of period $ 7,946,331 $ 2,079,469
============= =============
Supplemental cashflow information
and non-cash investing and financing
activities:
Cash paid for interest $ 963,199 $ 949,376
============= =============
TRAILER BRIDGE, INC.
RECONCILIATION OF GAAP NET LOSS, TO EARNINGS BEFORE INTEREST TAXES
DEPRECIATION & AMORTIZATION AND ADJUSTED
EARNINGS BEFORE INTEREST TAXES DEPRECIATION & AMORTIZATION (1)
Three months Three months
ended ended
March 31, 2009 March 31, 2008
------------- -------------
GAAP, Net loss $ (768,034) $ (1,822,556)
Net interest expense 2,563,097 2,550,296
Provision for income taxes 6,543 (35,660)
Depreciation and amortization 1,553,126 1,538,919
----------------------------
Non-GAAP, EBITDA $ 3,354,732 $ 2,230,999
----------------------------
Adjustments:
Stock compensation 89,923 99,900
Strategic alternative fees -- 297,859
Loss (gain) on asset sales (6,272) 67,348
Anti-trust related legal expense 296,778 --
----------------------------
Total Adjustments 380,429 465,107
----------------------------
Non-GAAP, Adjusted EBITDA $ 3,735,161 $ 2,696,106
============================
Other financial measures:
EBITDA margin 13.2% 7.3%
Adjusted EBITDA margin 14.7% 8.9%
Net debt to adjusted EBITDA 5.6x 5.7x
Adjusted EBITDA to interest expense 1.41 1.04
Use of Non-GAAP measures
(1) The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). The Company also believes that the presentation of certain non-GAAP measures, i.e., results excluding certain costs and expenses, provides useful information for the understanding of its ongoing operations and enables investors to focus on comparisons of operating performance from period to period without the impact of significant special items. Non-GAAP measures are reconciled in the accompanying financial table. The Company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for the Company's reported GAAP results. Adjusted EBITDA was calculated on a twelve month trailing rate for purposes of calculating net debt to adjusted EBITDA.