Trailer Bridge, Inc. reported the financial results for the first quarter ended March 31, 2005, highlighted by net income of $975,801, a $616,643, or a 171.7% improvement compared to the first quarter of 2004.
Total revenue for the three months ended March 31, 2005 was $24,365,534, an increase of $1,456,804, or 6.4% compared to the first quarter of 2004. Total southbound volume decreased 4.0% compared to the year earlier period. This decrease was driven by reduced used car volume, while southbound container volume increased 0.4% compared to the year ago quarter. Northbound, total volume decreased 27.1% from the year ago period, driven by reduced used car and military shipments. The effective yield of all of the southbound cargo represented an increase of 7.8% from the year earlier period while southbound container revenue per load increased 6.9%. In the northbound lane, the effective yield of all cargo decreased 0.7% from the year ago period while northbound container revenue per load increased 8.0%.
The Company's Jacksonville-San Juan deployed vessel capacity utilization during the first quarter was 92.2% to Puerto Rico and 19.3% from Puerto Rico, compared to 91.8% and 27.0%, respectively, during the first quarter of 2004. The operating income for the first quarter ended March 31, 2005 was $3,529,791, an improvement of $2,488,772 compared to operating income of $1,041,019 in the prior year period. The operating ratio was 85.5% during the first quarter of 2005 compared to the 95.5% operating ratio reported during the year earlier period. The improvement in operating income and the resulting improved operating ratio are primarily due to significant reductions in rent expense on vessels and equipment, partially offset by the related increase in depreciation expense, both of which were the result of assets purchased in the December 2004 transaction with the proceeds from the $85 million note offering. Net interest expense of $2,577,477 was also up 278.0% from the year earlier period due the issuance of these fixed rate notes that funded the purchase of the previously leased vessels and equipment. Based upon the Company’s fully reserved deferred tax asset, which currently stands at $20.5 million, no provision for income taxes has been reflected in the first quarter income statement.
Net income for the first quarter of 2005 was $975,801, an improvement of $616,643 compared to net income of $359,158 in the same period last year. The Company recorded net income of $.08 per common share in the first quarter of 2005, an improvement of $.09 per common share compared to a net loss of $.01 in the year earlier period after the effect of preferred stock that is no longer outstanding as a result of the previously announced K. Corp. transaction.
John D. McCown, Chairman and CEO, said, “Our core southbound container business performed well both in terms of volume and yield. This is the eighth straight quarter where we’ve seen meaningful year over year improvement at the bottom line. We are pleased with the rates we are seeing in our contract renewals as the effect of the sector’s improved supply/demand dynamics continue to roll through the lane.”