March 5, 2007
Trailer Bridge reports soaring income
Trailer Bridge, Inc. (NASDAQ: TRBR) today reported preliminary, unaudited financial results for the fourth quarter ended December 31, 2006. The preliminary results do not include the effect of an income tax credit likely to be shown in the audited financial statements. Any such credit will increase net income above the results reported today and will be reported in the audited financial statements contained in the company's filing in Form 10-K.
John D. McCown, Chairman and CEO, said, "These are the best quarterly financial results that Trailer Bridge has reported in its history. Compared to last year, our 10.7 percent revenue increase drove a 40.6 percent rise in net income. That resulted in earnings of $.32 per share, or twice what we earned in a sequential comparison to the third quarter of 2006. I believe our performance during the fourth quarter demonstrates the cost efficiency and significant operating leverage of our business model. These results precede additional revenue improvements in the first quarter of 2007, including our announced contract with Ford Motor Company. Our demonstrated results have us embracing the future with great optimism."
Total revenue for the three months ended December 31, 2006 was $31.1 million, an increase of 10.7 percent compared to the fourth quarter of 2005. Higher revenues were driven by an increase in southbound container volume of 6.3 percent, an increase in average revenue per southbound container of 5.5 percent, and increased fuel surcharges. The company's Jacksonville-San Juan deployed vessel capacity utilization during the fourth quarter was 90.4 percent to Puerto Rico and 24.3 percent from Puerto Rico compared to 88.9 percent and 24.0 percent, respectively, during the fourth quarter of 2005.
In a sequential comparison to the third quarter, total revenue in the fourth quarter increased 7.6 percent, due primarily to an increase in southbound container volume of 2.8 percent and an increase in average revenue per southbound container of 1.7 percent.
Operating income was $6.4 million in the fourth quarter of 2006, as compared with $5.4 million in the fourth quarter of 2005. That operating income produced an operating ratio of 79.5 percent for the fourth quarter of 2006 compared to 80.9% during the year earlier quarter. This is the best operating ratio in the company's history.
Net income for the fourth quarter of 2006 rose to $3.9 million from $2.8 million in the year earlier period. Net income attributable to common shares for the fourth quarter of 2006 was $.32, versus $.22 for the fourth quarter of 2005.
Trailer Bridge provides integrated trucking and marine freight service to and from all points in the lower 48 states and Puerto Rico, using 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.