Horizon Lines Reduces Debt in Q4

Monday, January 18, 2010

Horizon Lines, Inc. (NYSE:HRZ) announced that it reduced funded debt by $38.1m during the fourth quarter and completed its fiscal year with $28m less in funded debt than a year ago.

The company achieved stronger-than-projected free cash flow during the fourth quarter ended December 20, 2009. Cash was deployed to voluntarily pay down $35.0 million on a revolving credit facility and $1.5m on a crane loan, as well as for a $1.6m scheduled term-loan amortization payment. The fourth-quarter voluntary payments followed voluntary payments of $10m in the third quarter and $5m in the second quarter. At December 20, 2009, funded debt totaled $542.5m, compared with $570.5 a year earlier. As is typical for Horizon Lines, it borrowed against its revolver in the first quarter of 2010 to fund vessel lease payments and for seasonal working capital needs. Typically, the company uses cash flow generated in the second half of the year to repay the borrowings and further reduce debt.

"In the face of a still challenging fourth-quarter business environment, we were able to produce very strong cash flow and voluntarily pay down debt," said Chuck Raymond, Chairman, President and Chief Executive Officer. "While our revenue continued to be negatively impacted by lower volumes relative to last year, the rate of the volume decline lessened, continuing the improvement that we first experienced in the third quarter. EBITDA was in line with our internal expectations. We believe we are well positioned both financially and operationally for 2010, and view the year with cautious optimism."

Horizon Lines will report fourth-quarter and full-year financial results on January 29, 2010, at which time management will conduct a conference call with investors to more fully discuss its financial and operating results and discuss the outlook for 2010.

(www.horizonlines.com)

Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Ship Broker Clarkson Looks to Acquire Platou

Top ship broker Clarkson is seeking to acquire Norwegian brokerage and investment bank RS Platou for 281.2 million pounds ($441 million) in a deal that would create

Russian Liftings for Western Options at 12-Year Low

By Gleb Gorodyankin MOSCOW, Nov 25 (Reuters) - Exports of Russian crude oil to Western markets are set to fall by almost a third in December and reach a 12-year

Frontline Disappoints with Deeper 3Q Loss

Frontline, once the world's biggest crude oil tanker company, reported a bigger than expected third-quarter loss on Tuesday and said it is still considering options

 
 
Maritime Contracts Maritime Standards Naval Architecture Offshore Oil Pipelines Pod Propulsion Port Authority Ship Electronics Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1689 sec (6 req/sec)