AUGUST 7, 2012 — Rand Logistics, Inc. (Nasdaq: RLOG), which operates U.S. and Canadian flag Great Lakes bulk carriers, yesterday announced financial and operational results for its FY 2013 first quarter ended June 30, 2012.
- Net income applicable to common stockholders was $2.34 million compared to $2.67 million in the same quarter of the prior year.
- Marine freight revenue (excluding fuel and other surcharges, and outside charter revenue) increased by $5.6 million, or 18.4 percent, 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 percent, 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 percent, 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 percent, to $7.6 million compared to $5.8 million. Operating income plus depreciation and amortization increased by $2.6 million, or 26.8 percent, to $12.3 million from $9.7 million.
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."