NEW YORK, Aug. 6, 2012 (GLOBE NEWSWIRE) -- Rand Logistics, Inc. (Nasdaq:RLOG) ("Rand") today announced financial and operational results for its fiscal year 2013 first quarter ended June 30, 2012.
Quarter Ended June 30, 2012 Financial Highlights
Versus Quarter Ended June 30, 2011
- Marine freight revenue (excluding fuel and other surcharges, and outside charter revenue) increased by $5.6 million, or 18.4%, to $36.3 million from $30.7 million. This increase was attributable to 109 additional Sailing Days and contractual price increases.
- Marine freight revenue per Sailing Day increased by $2,122, or 7.4%, to $30,943 per Sailing Day compared to $28,821 per Sailing Day. This increase was somewhat offset by slightly reduced backhauls and a weaker Canadian dollar.
- Vessel operating expenses per Sailing Day increased by $1,411, or 5.3%, to $28,243 per Sailing Day from $26,832 per Sailing Day. This increase was attributable in part to higher fuel costs.
- Operating income increased by $1.8 million, or 30.3%, to $7.6 million compared to $5.8 million.
- Operating income plus depreciation and amortization increased by $2.6 million, or 26.8%, to $12.3 million from $9.7 million.
Management Comments
Scott Bravener, President of Lower Lakes, stated, "Overall, we are pleased with our first quarter results. Our improvement was driven in part by a full quarter of operation from the vessel that was repowered last year that we only operated for 30 days in the first quarter of fiscal year 2012. Overall, our fleet, with the exception of one vessel, performed close to or surpassed expectations for the quarter. We expect that the vessel that performed below expectations will return to budgeted contribution levels by mid-August. Our business visibility remains solid and demand for our services in our markets continues to be strong. Based on current market conditions, we do not believe that the tonnage that we carry in the 2012 sailing season will deviate materially from the levels that our earnings guidance was predicated on."
Laurence S. Levy, Chairman and CEO of Rand, commented, "Our operating income plus depreciation and amortization continues to benefit from increased scheduling efficiencies due to the growth of the fleet. This improvement validates the assumptions upon which our recent acquisitions were predicated. Our results for the quarter exclude any benefit from the self unloading ATB unit we acquired in December 2011, which we expect to introduce into service later this quarter. Based on customer contracts in hand, we expect that this vessel will be fully utilized as soon as it commences sailing."
"We continue to believe that we are well positioned to accelerate stockholder value creation given our non-duplicatable asset portfolio, the long-term nature of our customer contracts, attractive market supply/demand dynamics, and our favorable cost structure."
| Rand Logistics, Inc. | ||
| Summary Statements of Operations (Unaudited) | ||
| (U.S. Dollars 000's except for Shares and Per Share data) | ||
| Three months ended | Three months ended | |
| June 30, 2012 | June 30, 2011 | |
| Revenue | ||
| Freight and related revenue | $ 36,327 | $ 30,694 |
| Fuel and other surcharges | 12,475 | 11,332 |
| Outside voyage charter revenue | 810 | 310 |
| 49,612 | 42,336 | |
| Expenses | ||
| Outside voyage charter fees | 822 | 307 |
| Vessel operating expenses | 33,157 | 28,576 |
| Repairs and maintenance | 387 | 826 |
| General and administrative | 2,970 | 2,976 |
| Depreciation and amortization of drydock costs and intangibles | 4,693 | 3,867 |
| Loss (gain) on foreign exchange | 4 | (31) |
| 42,033 | 36,521 | |
| Operating Income | 7,579 | 5,815 |
| Net income applicable to common stockholders | $ 2,337 | $ 2,669 |
| Net income per share – basic and diluted | $ 0.13 | $ 0.18 |
Management will host a conference call to discuss the results at 8:30 a.m. ET on Tuesday, August 7, 2012. Interested parties may participate in the conference call by dialing 877-218-9317 (706-758-6006 for international callers), Conference ID# 12399827. 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 through October 7, 2012. Dial 855-859-2056 (404-537-3406 for international callers), Conference ID# 12399827, to access the phone replay.
The conference call will be webcast simultaneously on the Rand Logistics, Inc. website at www.randlogisticsinc.com/presentations.html. The webcast replay will be archived for 12 months.
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 to be filed with the Securities and Exchange Commission on June 8, 2012.
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 four conventional bulk carriers and twelve self-unloading bulk carriers including four tug/barge units. 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 reserves domestic waterborne commerce to vessels that are U.S. owned, built and crewed, – and the Canada Coasting Trade Act – which reserves domestic waterborne commerce to Canadian registered and crewed vessels that operate between Canadian ports.
| Rand Logistics, Inc. | ||
| Consolidated Statements of Operations (Unaudited) | ||
| (U.S. Dollars 000's except for Shares and Per Share data) | ||
| Three months ended | Three months ended | |
| June 30, 2012 | June 30, 2011 | |
| REVENUE | ||
| Freight and related revenue | $ 36,327 | $ 30,694 |
| Fuel and other surcharges | 12,475 | 11,332 |
| Outside voyage charter revenue | 810 | 310 |
| TOTAL REVENUE | 49,612 | 42,336 |
| EXPENSES | ||
| Outside voyage charter fees | 822 | 307 |
| Vessel operating expenses | 33,157 | 28,576 |
| Repairs and maintenance | 387 | 826 |
| General and administrative | 2,970 | 2,976 |
| Depreciation | 3,488 | 2,791 |
| Amortization of drydock costs | 879 | 739 |
| Amortization of intangibles | 326 | 337 |
| Loss (gain) on foreign exchange | 4 | (31) |
| 42,033 | 36,521 | |
| OPERATING INCOME | 7,579 | 5,815 |
| OTHER (INCOME) AND EXPENSES | ||
| Interest expense | 2,704 | 2,001 |
| Interest income | (4) | (1) |
| Gain on interest rate swap contracts | (270) | (45) |
| 2,430 | 1,955 | |
| INCOME BEFORE INCOME TAXES | 5,149 | 3,860 |
| PROVISION FOR INCOME TAXES | ||
| Current | -- | 57 |
| Deferred | 2,054 | 474 |
| 2,054 | 531 | |
| NET INCOME BEFORE PREFERRED STOCK DIVIDENDS | 3,095 | 3,329 |
| PREFERRED STOCK DIVIDENDS | 758 | 660 |
| NET INCOME APPLICABLE TO COMMON STOCKHOLDERS | $ 2,337 | $ 2,669 |
| Net income per share basic and diluted | $ 0.13 | $ 0.18 |
| Weighted average shares basic and diluted | 17,720,071 | 14,858,952 |
| Rand Logistics, Inc. | ||
| Consolidated Balance Sheets (Unaudited) | ||
| (U.S. Dollars 000's except for Shares and Per Share data) | ||
| June 30, | March 31, | |
| 2012 | 2012 | |
| ASSETS | ||
| CURRENT | ||
| Cash and cash equivalents | $ 4,157 | $ 5,563 |
| Accounts receivable | 25,551 | 5,343 |
| Prepaid expenses and other current assets | 7,449 | 6,510 |
| Deferred income taxes | 286 | 284 |
| Total current assets | 37,443 | 17,700 |
| PROPERTY AND EQUIPMENT, NET | 204,271 | 200,862 |
| LOAN TO EMPLOYEE | 250 | 250 |
| OTHER ASSETS | 1,360 | 1,528 |
| DEFERRED INCOME TAXES | 760 | 1,318 |
| DEFERRED DRYDOCK COSTS, NET | 11,309 | 9,879 |
| INTANGIBLE ASSETS, NET | 15,229 | 16,101 |
| GOODWILL | 10,193 | 10,193 |
| Total assets | $ 280,815 | $ 257,831 |
| LIABILITIES | ||
| CURRENT | ||
| Bank indebtedness | $ 23,804 | $ -- |
| Accounts payable | 20,340 | 19,301 |
| Accrued liabilities | 17,811 | 18,175 |
| Interest rate swap contracts | 809 | 1,088 |
| Income taxes payable | 32 | 76 |
| Deferred income taxes | 237 | 418 |
| Current portion of deferred payment liability | 431 | 431 |
| Current portion of long-term debt | 9,599 | 9,686 |
| Total current liabilities | 73,063 | 49,175 |
| LONG-TERM PORTION OF DEFERRED PAYMENT LIABILITY | 1,958 | 2,063 |
| LONG-TERM DEBT | 119,972 | 123,915 |
| OTHER LIABILITIES | 242 | 242 |
| DEFERRED INCOME TAXES | 4,543 | 3,091 |
| Total liabilities | 199,778 | 178,486 |
| 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, Issuable and outstanding 17,724,306 shares | ||
| Additional paid-in capital | 88,269 | 87,853 |
| Accumulated deficit | (23,012) | (25,349) |
| Accumulated other comprehensive income | 879 | 1,940 |
| Total stockholders' equity | 81,037 | 79,345 |
| Total liabilities and stockholders' equity | $ 280,815 | $ 257,831 |