NEW YORK, Nov. 12, 2009 (GLOBE NEWSWIRE) -- Rand Logistics, Inc. (Nasdaq:RLOG) ("Rand") today announced financial and operational results for the second quarter of fiscal 2010 ended September 30, 2009 and provided an update on recent business developments.
Quarter Ended September 30, 2009 Financial Highlights Versus Quarter Ended September 30, 2008
* Marine freight revenue (excluding fuel and other surcharges,
and outside charter revenue) was $28.1 million, a decrease
of 13.0% from $32.3 million. The decline in marine freight
revenue was due in large part to fewer vessel sailing days
and operating inefficiencies attributable to a reduction
in customer demand versus the prior year, as well as a
weaker Canadian dollar as compared to last year.
* Marine freight revenue per sailing day decreased by $1,466
or 5.0%, to $28,136 from $29,602.
* Vessel operating expenses per sailing day decreased by
$8,191, or 29.5%, to $19,608 from $27,799. The decrease
was primarily attributable to reduced fuel costs, improved
cost management, the realization of operating efficiencies
resulting from capital improvements and a decrease in vessel
sailing days.
* Net income before taxes was $7.6 million, a decrease of
5.1% from $8.0 million.
Six Months Ended September 30, 2009 Financial Highlights Versus Six Months Ended September 30, 2008
* Marine freight revenue (excluding fuel and other surcharges,
and outside charter revenue) was $52.3 million, a decrease
of 12.3% from $59.6 million.
* Marine freight revenue per sailing day decreased by $1,784
or 6.1%, to $27,344 from $29,128. Vessel operating expenses
per sailing day decreased by $7,704, or 28.2%, to $19,610
from $27,314.
* Net income before taxes was $10.9 million, a decrease of
17.2% from $13.2 million.
Scott Bravener, President of Lower Lakes stated, "Given the challenging macroeconomic environment, there was a reduction in demand for bulk freight shipping services on the Great Lakes during the second fiscal quarter compared to the prior year. Specifically, the major commodities that are transported on the Great Lakes experienced lakes-wide tonnage declines of up to 60%. Notwithstanding the decline in demand, we were pleased with our vessel utilization, which equaled 91% of the theoretical maximum during the quarter, as well as our tonnage volumes which were only down 14% versus the prior year, excluding outside voyage charter. Despite a decline in marine freight revenue per day, vessel operating margins approached prior year record levels, as a direct result of continued realization of operating efficiencies and cost reductions."
"While there is still uncertainty in our end markets, we are more confident about our business entering the third fiscal quarter. Demand for our services appears to be stabilizing and we have adequate visibility into shipments through the end of the 2009 sailing season. We have carefully managed our vessels throughout the 2009 sailing season in anticipation of some of our major customers closing their facilities for the winter earlier than normal. As such, during our current fiscal quarter, while we anticipate operating inefficiencies stemming from these early shutdowns, we are better prepared for the impact to our operations and have planned accordingly. Finally, we believe that we have capitalized on our cost-efficient operating model, the size and configuration of our fleet and the market downturn to gain further market share, which gives us a high degree of confidence that once market demand recovers, we will be able to restore vessel efficiencies, providing the potential for substantial operating leverage and profit improvement," Mr. Bravener concluded.
Laurence S. Levy, Chairman and CEO of Rand commented, "As a result of the steps taken thus far this fiscal year to reduce costs, coupled with improved customer visibility, we believe that consistent with prior years, our operating income, before depreciation and amortization, for the first half of fiscal 2010 will be reflective of our full year results, barring significant weather delays or an operational incident over the next 60 days. As a result, our operating income before depreciation and amortization for fiscal 2010 is likely to only be marginally lower than fiscal 2009 results, which were the highest in the Company's history, notwithstanding a weaker Canadian dollar and significant operating inefficiencies caused by a reduction in customer demand."
"We continue to be well positioned to weather this downturn and feel that our expected fiscal 2010 performance clearly illustrates the benefit of our diverse end markets served, targeted market focus, our efficient cost structure and the size and configuration of our fleet. The severity of the downturn in our markets has tested our business model and our operating performance for the first half of our fiscal year underscores our position as one of the most efficient providers of bulk freight shipping services throughout the Great Lakes region," concluded Mr. Levy.
Rand Logistics, Inc.
Summary Statement of Operations (Unaudited)
(U.S. Dollars 000's except for Shares and Per Share data)
Three months ended Six months ended
September 30 September 30
2009 2008 2009 2008
--------------------------- ------- ------- ------- -------
Revenue
Freight and related
revenue $28,136 $32,325 $52,281 $59,626
Fuel and other surcharges 5,467 13,161 8,776 22,579
Outside voyage charter
revenue 2,640 6,803 4,437 13,490
--------------------------- ------- ------- ------- -------
36,243 52,289 65,494 95,695
Expenses
Outside voyage charter
fees 2,634 6,062 4,420 12,308
Vessel operating expenses 19,608 30,356 37,494 55,911
Repairs and maintenance 63 -- 717 888
General and administrative 1,796 2,662 4,193 5,131
Depreciation and
amortization of drydock
costs and intangibles 3,404 2,792 6,399 5,408
(Gain) loss on foreign
exchange (39) (43) 8 (41)
--------------------------- ------- ------- ------- -------
27,466 41,829 53,231 79,605
--------------------------- ------- ------- ------- -------
Operating income 8,777 10,460 12,263 16,090
--------------------------- ------- ------- ------- -------
Net income applicable to
common stockholders $ 5,420 $ 4,782 $ 7,262 $ 7,098
--------------------------- ------- ------- ------- -------
Net income per share basic $ 0.42 $ 0.38 $ 0.56 $ 0.58
Net income per share
diluted $ 0.38 $ 0.34 $ 0.53 $ 0.52
Management will host a conference call to discuss the results at 8:30 a.m. ET on Thursday, November 12, 2009. Interested parties may participate in the conference call by dialing 877-218-9317 (706-758-6006 for international callers), Conference ID# 39127863. Please dial in 10 minutes before the call is scheduled to begin.
A telephonic replay of the conference call may be accessed approximately two hours after the completion of the call. Dial 800-642-1687 (706-645-9291 for international callers), Conference ID# 39127863 to access the phone replay.
The conference call will be webcast simultaneously on the Rand Logistics, Inc. website at www.randlogisticsinc.com/presentations.html.
Forward-Looking Statements
This press release contains forward-looking statements. For all forward-looking statements, we claim the protection of the Safe Harbor for Forward-Looking Statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy or are otherwise beyond our control and some of which might not even be anticipated. Future events and actual results, affecting our strategic plan as well as our financial position, results of operations and cash flows, could differ materially from those described in or contemplated by the forward-looking statements. Important factors that contribute to such risks include, but are not limited to, the effect of the economic downturn in our markets; the weather conditions on the Great Lakes; and our ability to maintain and replace our vessels as they age.
For a more detailed description of these uncertainties and other factors, please see the "Risk Factors" section in Rand's Annual Report on Form 10-K as filed with the Securities and Exchange Commission on June 25, 2009.
About Rand Logistics
Rand Logistics, Inc. is a leading provider of bulk freight shipping services throughout the Great Lakes region. Through its subsidiaries, the Company operates a fleet of ten self-unloading bulk carriers, including eight River Class vessels and one River Class integrated tug/barge unit, and three conventional bulk carriers, of which one is operated under a contract of affreightment. The Company is the only carrier able to offer significant domestic port-to-port services in both Canada and the U.S. on the Great Lakes. The Company's vessels operate under the U.S. Jones Act - which dictates that only ships that are built, crewed and owned by U.S. citizens can operate between U.S. ports - and the Canada Marine Act - which requires only Canadian commissioned ships to operate between Canadian ports.
RAND LOGISTICS, INC.
Consolidated Balance Sheets (Unaudited)
(U.S. Dollars 000's except for Shares and Per Share data)
---------------------------------------------------------------------
Sept. 30, March 31,
2009 2009
-------------------------
ASSETS
CURRENT
Cash and cash equivalents $ 7,171 $ 1,953
Accounts receivable 17,386 1,166
Prepaid expenses and other current
assets 3,516 3,008
Income taxes receivable -- 22
Deferred income taxes 419 418
--------------------------------------------------------------------
Total current assets 28,492 6,567
PROPERTY AND
EQUIPMENT, NET 93,629 86,233
DEFERRED INCOME
TAXES 10,721 12,140
DEFERRED DRYDOCK
COSTS, NET 6,969 7,274
INTANGIBLE ASSETS,
NET 14,212 13,497
GOODWILL 10,193 10,193
--------------------------------------------------------------------
Total assets $ 164,216 $ 135,904
--------------------------------------------------------------------
LIABILITIES
CURRENT
Bank indebtedness $ 11,424 $ 2,786
Accounts payable 6,543 4,131
Accrued liabilities 10,806 11,087
Interest rate swap contracts 2,714 3,899
Income taxes payable 46 --
Deferred income taxes 582 480
Current portion of long-term debt 4,561 4,094
--------------------------------------------------------------------
Total current liabilities 36,676 26,477
LONG-TERM DEBT 58,156 54,240
OTHER LIABILITIES 232 232
DEFERRED INCOME TAXES 14,683 13,185
--------------------------------------------------------------------
Total liabilities 109,747 94,134
--------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, $.0001 par value, 14,900 14,900
Authorized 1,000,000 shares, Issued
and outstanding 300,000 shares
Common stock, $.0001 par value 1 1
Authorized 50,000,000 shares, Issued
and outstanding 12,950,357 shares
Additional paid-in capital 62,107 61,675
Accumulated deficit (21,966) (29,228)
Accumulated other comprehensive loss (573) (5,578)
--------------------------------------------------------------------
Total stockholders' equity 54,469 41,770
--------------------------------------------------------------------
Total liabilities and stockholders'
equity $ 164,216 $ 135,904
--------------------------------------------------------------------
RAND LOGISTICS, INC.
Consolidated Statements of Operations (Unaudited)
(U.S. Dollars 000's except for Shares and Per Share data)
-------------------- --------------------- ---------------------
Three months ended Six months ended
September 30 September 30
2009 2008 2009 2008
--------------------- ---------------------
REVENUE
Freight and
related revenue $ 28,136 $ 32,325 $ 52,281 $ 59,626
Fuel and other
surcharges 5,467 13,161 8,776 22,579
Outside voyage
charter revenue 2,640 6,803 4,437 13,490
-------------------- --------------------- ---------------------
TOTAL REVENUE 36,243 52,289 65,494 95,695
-------------------- --------------------- ---------------------
EXPENSES
Outside voyage
charter fees 2,634 6,062 4,420 12,308
Vessel operating
expenses 19,608 30,356 37,494 55,911
Repairs and
maintenance 63 -- 717 888
General and
administrative 1,796 2,662 4,193 5,131
Depreciation 2,373 1,785 4,381 3,403
Amortization of
drydock costs 602 567 1,180 1,134
Amortization
of intangibles 429 440 838 871
(Gain) loss on
foreign exchange (39) (43) 8 (41)
-------------------- --------------------- ---------------------
27,466 41,829 53,231 79,605
-------------------- --------------------- ---------------------
OPERATING INCOME 8,777 10,460 12,263 16,090
-------------------- --------------------- ---------------------
OTHER (INCOME) AND
EXPENSES
Interest expense 1,482 1,799 2,911 3,473
Interest income (4) (1) (5) (6)
(Gain) loss on
interest rate
swap contracts (296) 662 (1,569) (572)
-------------------- --------------------- ---------------------
1,182 2,460 1,337 2,895
-------------------- --------------------- ---------------------
INCOME BEFORE
INCOME TAXES 7,595 8,000 10,926 13,195
-------------------- --------------------- ---------------------
PROVISION FOR INCOME
TAXES
Current 69 -- 69 --
Deferred 1,629 2,807 2,675 5,323
-------------------- --------------------- ---------------------
1,698 2,807 2,744 5,323
-------------------- --------------------- ---------------------
NET INCOME 5,897 5,193 8,182 7,872
-------------------- --------------------- ---------------------
PREFERRED
STOCK DIVIDENDS 477 411 920 774
-------------------- --------------------- ---------------------
NET INCOME
APPLICABLE TO
COMMON STOCKHOLDERS $ 5,420 $ 4,782 $ 7,262 $ 7,098
-------------------- --------------------- ---------------------
Net income per share
basic $ 0.42 $ 0.38 $ 0.56 $ 0.58
Net income per share
diluted $ 0.38 $ 0.34 $ 0.53 $ 0.52
Weighted
average
shares basic 12,909,014 12,436,508 12,900,020 12,271,685
Weighted
average
shares
diluted 15,328,369 15,345,199 15,319,375 15,075,817