Trailer Bridge, Inc. reported the financial results for the first quarter ended March 31, 2003,highlighted by positive net cash provided by operating activities and a significant increase in volume and revenue from mid-March that has continued into the second quarter of 2003.
Recent Increase in Vessel Capacity Utilization an Indicator that Long Awaited Market Turnaround has Arrived
As previously disclosed, as a result of the effect on new volume commitments kicking in, the Company has experienced a significant increase in volume and revenue since early March. This volume pick-up had been anticipated based upon new commitments and indications of commitments that the Company’s sales force was getting from shippers, primarily starting after Labor Day 2002. The Company believes that this recent robust volume is being driven by the reduction in trade lane capacity as discussed in detail in previous releases and conference calls and the superior service and on-time performance delivered by the Company.
Most recently, for the six-week period ending May 9, 2003, a period representing almost half of the second quarter, deployed vessel capacity utilization was 98.3% southbound and 27.7% northbound, which resulted in average weekly revenue of $1,696,030. This average actual weekly revenue level is 16.1% above the overall average weekly revenues for the first quarter of 2003. The Company believes that with a continuation of this revenue level it will be profitable in the second quarter of 2003. Furthermore, based upon increased volume from specific existing accounts, increased customer commitments and actual growing booking trends, the Company believes that these actual volume and revenue levels are sustainable and therefore more indicative of what to expect going forward than any recent actual historical period.
Revenues Increase; Higher Fuel Costs Affect Operating Results
Total revenue for the three months ended March 31, 2003 was $18,986,074, an increase of $1,505,948 or 8.6% compared to the first quarter of 2002. Total southbound volume increased 11.4% compared to the year earlier period. Northbound, total volume increased 24.7% from the year ago period. The effective yield of all of the southbound cargo represented a decrease of 1.4% from the year earlier period. In the northbound lane, the effective yield of all cargo decreased 6.0% from the year ago period.
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