Trailer Bridge Reports 2011 Third Quarter and Nine Month Financial Results
Monday 21 November 2011
Trailer Bridge, Inc. (Nasdaq: TRBR) today announced unaudited financial results for its third quarter and nine months ended September 30, 2011 (see attached tables).
Operational Review
The Company’s primary business is to transport freight from its origination point in the continental United States to San Juan, Puerto Rico and Puerto Plata, Dominican Republic (“Southbound”) and from San Juan, Puerto Rico and Puerto Plata, Dominican Republic to its destination point in the continental United States (“Northbound”).
The Company’s Southbound vessel capacity utilization improved to 93.6% for the three months ended September 30, 2011, compared to 90.3% for the three months ended September 30, 2010 and 91.2% for the three months ended June 30, 2011. Southbound vessel capacity thus far in the fourth quarter is 103.2% with the past 5 weeks above the 100% mark.
The Company operates in an unbalanced trade lane, with the majority of freight moving Southbound from the continental United States to its two island destinations. Vessel capacity utilization Northbound to the United States was 24.8% for the three months ended September 30, 2011, compared to 25.6% for the three months ended September 30, 2010 and 24.1% for the three months ended June 30, 2011.
Comments from Management
William G. Gotimer, Jr. and Mark A. Tanner, the Company’s co-Chief Executive Officers, jointly stated, “Trailer Bridge remains committed to our employees and our shipping customers. Our recent decision to restructure the balance sheet of the Company will strengthen our ability to provide consistent service between the mainland, Puerto Rico, and the Dominican Republic. We are also seeing operating trends moving in the right direction. Through the first seven weeks in the current fourth quarter, we have seen marked improvement in all aspects of our operations, including higher revenues, and volume increases. We have achieved this in what has been a period of perceived uncertainty regarding our refinancing efforts. Our entire Company is focusing on what has made Trailer Bridge successful since its founding 20 years ago; reliably and efficiently moving freight for our customers. We have the most modern fleet in the Caribbean, and believe our value proposition to shippers provides cost-efficiencies that are valued in this economic climate. Upon the completion of this process, we expect to emerge a stronger company financially. Thanks to the support of our employees, vendors, and customers, we had no disruptions of any kind in the past week and expect to continue providing quality service to our shipper clientele.”
2011 Third Quarter Financial Review
•The Company had revenue of $31.1 million during the quarter, a 6.1% increase compared to $29.3 million in the prior year period, and up approximately 7.2% sequentially from the second quarter of 2011.
•Trailer Bridge’s operating income for the three month period ended September 30, 2011, was $0.7 million compared to $2.5 million in the same period of the previous year. The decrease was largely due to higher inland purchased transportation, fuel, and operating and maintenance expenses during the period.
•The Company reported a net loss of $1.9 million, or $0.16 per basic share and diluted share for the three months ended September 30, 2011, compared to net income of approximately $6,900, or $0.00 per basic share and diluted share, in the same period in 2010. However, this was a substantial improvement over a net loss of $3.6 million reported sequentially in the second quarter of 2011.
•Adjusted EBITDA, as detailed in the accompanying table, was $2.4 million in the third quarter of 2011.
Strategic Restructuring
As announced on November 16, 2011, the Company filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code upon its $82.5 million 9.25% Senior Secured Notes (“Notes”) becoming due. The Company hopes to complete this reorganization by the end of the first quarter of 2012. The Company believes that this action is the quickest and most efficient way to restructure its balance sheet and ensure the long-term strength of its operations.
Trailer Bridge has received approval from the bankruptcy court to receive $15 million in debtor-in-possession, or DIP, financing to meet its post filing obligations, and will continue operating under its usual course of business throughout the process. Trailer Bridge management again reiterates that it does not expect any reduction in its workforce or vessel deployment and will continue to provide its reliable weekly sailings between Jacksonville, Florida, and San Juan, Puerto Rico, weekly sailings between Jacksonville, Florida, and the Dominican Republic, as well as weekly inter-island service between Puerto Rico and the Dominican Republic.
The petition was filed in the U.S. Bankruptcy Court for the Middle District of Florida. Additional information and court documents related to the bankruptcy can be located at www.kccllc.net/TrailerBridge. Throughout this process, the Company is available to answer any questions that its shareholders, employees, or customers may have throughout this process.
As previously announced, the Company expects to cease trading on the Nasdaq Stock Market as of the opening of the stock market on November 28, 2011. With the filing of these financial reports, the Company now believes that it will begin trading on the OTC Bulletin Board (“OTC BB”) under the ticker symbol “TRBR”.
The Company will continue to file periodic reports with the SEC pursuant to the requirements of the Securities Exchange Act of 1934 as amended.
About Trailer Bridge, Inc.
Trailer Bridge provides integrated trucking and marine freight service to and from all points in the lower 48 states and Puerto Rico and Dominican Republic, bringing efficiency, service, security and environmental and safety benefits to domestic cargo in that traffic lane. This total transportation system utilizes its own trucks, drivers, trailers, containers and U.S. flag vessels to link the mainland with Puerto Rico via marine facilities in Jacksonville, San Juan and Puerto Plata. Additional information on Trailer Bridge is available at the www.trailerbridge.com website.
