Trailer Bridge Announces 2Q Results

Wednesday, August 15, 2001
Trailer Bridge, Inc. reported its financial results for the second quarter ended June 30, 2001. Total revenue for the three months ended June 30, 2001 was $21,659,184, as compared to $23,764,889 for the second quarter of 2000. Compared sequentially to the first quarter of 2001, total revenue increased $1,022,471 or 5 percent. Trailer Bridge had 14.4 percent more overall vessel capacity deployed between the mainland and Puerto Rico with weekly Northeast sailings compared to bi-weekly sailings in the second quarter of 2000. Compared sequentially to the first quarter, total deployed capacity was up 11.9% primarily due to missed sailings due to dry-docking in the first quarter.

The operating loss for the second quarter ended June 30, 2001 was $4,131,848, as compared to $1,302,714 operating income in the year earlier period. However, this marks an improvement of $400,328 from the operating loss in the first quarter of 2001. Operating income was lower compared to the year earlier period due to lower yields, lower vessel and tractor asset utilization and the effect of fully expensing a dry-docking charge early in the quarter. As a result, Trailer Bridge's operating ratio was 119.1 percent during the second quarter of 2001 compared to the 94.5 percent operating ratio during the year earlier period and the 122 percent during the first quarter of 2001.

As previously disclosed, the second quarter results include an accrual of more than $1.8 million of charter-hire to an affiliate, the payment of which has been deferred to next year. In addition, an equivalent amount of charter-hire that was accrued for in the first quarter results has been forgiven. These large non-cash accruals, the effect of the non-recurring dry-docking expenses in both the first and second quarter and the large non-cash depreciation charges underscore the importance of various cash flow measures as a further benchmark on the level and trend of Trailer Bridge's results. For instance, during the second quarter, EBITDA adjusted to exclude charter-hire, dry-docking and loss on sale of equipment resulted in a reduced operating cash flow deficit of $614,783. Another measure, the statement of cash flows as filed in Trailer Bridge's 10-Q financial statements, shows that net cash used in operating activities improved $1,272,663 in the second quarter compared sequentially to the first quarter of 2001. The net cash used in operating activities includes the effect of charter-hire that was deferred or forgiven, respectively, in the second and first quarters, as well as non-recurring dry-docking expenses. Excluding those amounts, adjusted net cash used in operating activities was approximately $1.0 million in the second quarter, or about one half of the $1.9 million adjusted net cash used in operating activities in the first quarter.

For the second quarter ended June 30, 2001, net interest expense was $810,678, down 1.7 percent from the year earlier period and down 7.2 percent sequentially from the first quarter due primarily to debt reductions. During the second quarter of 2001, Trailer Bridge also had a loss of $218,419 related to the sale of excess 48' trailer equipment. Loss before income taxes for the second quarter was $5,160,944, a decrease of $5,661,569 from the year earlier period but an improvement of $213,210 sequentially from the first quarter of 2001. As previously disclosed, income taxes will not be reflected until profitable operations resume. Net loss per share was $0.53 for the second quarter compared to net income per share of $.06 for the year earlier period and net loss per share of $.55 for the first quarter of 2001.

At June 30, 2001, cash amounted to $747,317, working capital was $3.2 million and stockholders equity was equal to $10.1 million. Trailer Bridge requested and received waivers for those financial covenants it was not in compliance with at June 30, 2001 under its revolving credit/term loan and the covenants have been reset at levels that Trailer Bridge anticipates it will be able to comply with in the future.

Comparing Trailer Bridge's segments for the second quarter of 2001 to the year earlier period, total southbound volume decreased 3.3 percent and total northbound volume decreased 26.2 percent.

Comparing total volume and total revenue by direction, Trailer Bridge's effective yield to and from Puerto Rico decreased 3.4 percent southbound and increased 0.2 percent northbound. The Company's Puerto Rico deployed vessel capacity utilization was 65.6 percent southbound and 19.5 percent northbound, well below the 79.9 percent and 29.3 percent, respectively, during the year earlier period when 12.6 percent less capacity was deployed. While core southbound trailer volume increased 3.6 percent, all other segments showed volume decreases, with new car volume down sharply at 25.8 percent. Trailer Bridge had an average of 200 tractor units operating on the mainland during the quarter, averaging 9,126 miles per month of which 77.8 percent were loaded.

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

People & Company News

London, Brazil Terminals Boost DP World Container Volumes

DP World , one of the world's biggest port operators, said on Thursday that its gross container volumes rose 10.7 percent from a year earlier in the first half of 2014.

Abu Dhabi Ports Shift Far More Breakbulk Cargo

Abu Dhabi Ports Company (ABPC) says that general cargo moving through Abu Dhabi’s commercial Ports has increased by 37% this year. ADPC’s commercial ports (Musaffah,

U.S. Naval Academy: New Superintendent

The U.S. Naval Academy (USNA) has held a change of command ceremony in Annapolis, Maryland, where Vice Adm. Walter E. "Ted" Carter Jr. relieved Vice Adm. Michael Miller,

Finance

Seadrill Bondholders: Majority Accept Conversion Offer

Seadrill Limited says that holders of approximately US$547 million of Seadrill's convertible bonds due 2017 (representing approx. 84.1% of the total outstanding

General Dynamics Reports 2Q 2014 Earnings

General Dynamics today reported 2014 second-quarter earnings from continuing operations of $646 million, or $1.88 per share on a diluted basis, compared to second-quarter

Trading Dutch Well Placed to Pursue Russia Sanctions

The seafaring Netherlands prides itself on being a trading nation, reluctant to let politics get in the way of a good deal. But since the downing, allegedly

 
 
Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Repair 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: 0.1347 sec (7 req/sec)