May 15, 2008
Trailer Bride reports Q1 results
Trailer Bridge, Inc. (NASDAQ Global Market: TRBR) today reported unaudited financial results for the first quarter ended March 31, 2008.
The company reported operating income of $692,000 in the first quarter of 2008, compared with operating income of $3.8 million in the first quarter of 2007 and a net loss of $1.8 million, or $0.15 per share, compared to net income of $1.3 million, or $0.11 per share, in the year earlier period.
Southbound container volume increased 15.1% with a southbound vessel utilization of 72.4% and total revenue increased 13.3% to reach $30.4 million. Those results were mitigated by the start up costs of a new Dominican Repubic/Puerto Rico service, continuing fuel price increases and other items.
Start up of the new service is estimated to have incrementally reduced net income by $1.6 million during the first quarter. Net fuel cost increased by $1.0 million.
John D. McCown, Chairman and CEO, said, “We were very pleased to deliver strong top-line growth driven by a 15.1% increase in southbound container volume and 14.1% rise in related revenue, especially in a soft Puerto Rico freight market. Our core business, our ongoing twice weekly Puerto Rico services, continued to be profitable."
"We were pushed into a loss due to increased fuel costs and investment in the new Dominican Republic/Puerto Rico service," he said. "However, March and April results as well as current trends in our new service are encouraging. Fuel increases continued to rise and outpaced fuel surcharge increases. To mitigate this loss we filed various additional fuel surcharges last week that are scheduled to go into effect June 1. We believe that our customers understand and will accept the surcharges.”
The company's deployed vessel capacity utilization during the first quarter was 72.4% southbound and 21.6% northbound, compared to 80.3% and 24.6%, respectively, during the first quarter of 2007. The decrease in utilization was largely related to the introduction of the fifth vessel in the company’s new service, which increased capacity by 22.1% southbound compared to the year earlier quarter.
Mr. McCown continued, “Trailer Bridge’s board and management are focused on delivering the exceptional actual results we demonstrated in the recent past. For the twelve months ended June 2007, the last twelve month period prior to commencement of the new service and consistently increasing fuel prices, Trailer Bridge achieved an operating ratio of 82.9% and earnings of $10.0 million. We remain confident in our proven system and in our ability to meet the challenges of a new startup and the reality of rising fuel costs, a challenge all carriers must meet.”
At March 31, 2008, the company had cash balances of $2.1 million and working capital of $4.6 million. The company is in compliance with its covenants and has the full amount available on its $10 million revolving credit facility.TRBR