June 25, 2009
ACL says second quarter EBITDA will be lower
American Commercial Lines Inc. (Nasdaq: ACLI) has announced some expected financial results for the quarter ended June 30, 2009. EBITDA for the second quarter is expected to be in the range of $15.5 million to $18.5 million, compared to $27.7 million in the prior year quarter. EBITDA in the current quarter is expected to include the expense for non cash stock compensation of $1.9 million compared to $3.0 million in the prior year. ACL also expects total debt (exclusive of any proposed financing activities) to be in the range of $405 million to $415 million at June 30, 2009, compared to $446.5 million at June 30, 2008.
Continuing softness in barge demand for higher margin metals and refined liquid petrochemical products is expected to be a primary contributor to the lower EBITDA results in the second quarter. Barge demand for lower margin grain and domestic coal shipments continues to be strong, although barge shipping rates for grain products are lower in the current quarter as compared to the prior year.
ACL also announced that it has received an independent appraisal of its fleet in connection with its intention to refinance its current credit facility. The estimated fair market value of ACL's fleet reflected in the June 2009 appraisal report is slightly over $1 billion.
Separately, Commercial Barge Line Company, a direct wholly owned subsidiary of American Commercial Lines Inc. announced yesterday that it intends to offer $200 million aggregate principal amount of senior secured second lien notes due in 2017 in a private placement. The notes will be guaranteed by ACL and by certain of ACL's existing and future domestic subsidiaries. Net proceeds from the offering, together with borrowings under a proposed new four year $350 million senior secured first lien asset-based revolving credit facility, will be used to repay ACL's existing credit facility, to pay certain related transaction costs and expenses and for general corporate purposes.