Horizon Lines Report Q1 2014 Container Volume Increase

Posted by George Backwell
Thursday, May 08, 2014
Image courtesy of Horizon Lines

Horizon Lines, Inc. has released its financial results for the fiscal first quarter ended March 23, 2014. Excerpts as follows:

First-Quarter 2014 Financial Highlights 
     

  • Volume, Rate & Fuel Cost – Container volume for the 2014 first quarter totaled 55,223 revenue loads, up 7.6% from 51,321 loads for the same period a year ago.  The increase was primarily due to improved volumes in our Hawaii and Puerto Rico markets, partially offset by a decline in volumes in our Alaska market. Unit revenue per container totaled $4,197 in the 2014 first quarter, compared with $4,363 a year ago. First-quarter unit revenue per container, net of fuel surcharges, was $3,221, down 2.0% from $3,286 a year ago. Vessel fuel costs averaged $638 per metric ton in the first quarter, 5.5% below the average price of $675 per ton in the same quarter a year ago.  
  • Operating Revenue – First-quarter operating revenue from continuing operations grew 3.0% to $251.9 million from $244.5 million a year ago. The factors driving the $7.4 million revenue improvement were a $12.9 million volume increase - driven by higher volumes in our Hawaii market, the addition of a bi-weekly Jacksonville sailing to our southbound service between Houston and San Juan, and market share gains in our service between Philadelphia and San Juan - and a $0.2 million rise in non-transportation services revenue. These were partially offset by a $3.3 million decrease in container revenue rates and a $2.4 million drop in bunker and intermodal fuel surcharges.
  • Operating Loss – The GAAP operating loss from continuing operations for the first quarter totaled $8.6 million, compared with an operating loss of $4.3 million a year ago. The $4.3 million decline was mainly due to higher fuel and labor costs associated with dry-docking transits and contractual cost increases that impacted marine, inland transportation and terminal expenses. The 2014 first-quarter GAAP operating loss includes charges totaling $1.9 million associated with employee severance and certain legal expenses. The 2013 first-quarter GAAP operating loss includes $5.4 million of costs associated with a restructuring charge, employee severance, and certain legal expenses. (See reconciliation tables for specific line-item amounts.) Adjusting for these items, the first-quarter 2014 adjusted operating loss from continuing operations totaled $6.6 million, compared with adjusted operating income of $1.1 million a year ago.
  • EBITDA – EBITDA from continuing operations totaled $4.9 million for the 2014 first quarter, compared with $8.4 million for the same period a year ago. Adjusted EBITDA from continuing operations for the first quarter of 2014 was $6.8 million versus $13.7 million for 2013. EBITDA and adjusted EBITDA for the 2014 and 2013 first quarters were impacted by the same factors affecting operating loss. Additionally, 2014 and 2013 first quarter adjusted EBITDA reflect the exclusion of $71 thousand and $45 thousand, respectively, of non-cash gains on marking the conversion feature in the company's convertible debt to fair value. (See reconciliation tables for specific line-item amounts.)

Outlook
Sam Woodward, President and Chief Executive Officer: "We expect 2014 revenue container loads to be above 2013 levels due to anticipated modest volume growth in all three markets we serve. This projected volume growth takes into consideration the estimated impacts of a new competitor that entered the Puerto Rico Gulf service in May 2013, as well as a second vessel being added by a competitor in our Hawaii service during the fourth quarter of 2014, partially offset by the full-year impact of adding a bi-weekly Jacksonville sailing to our southbound service between Houston, Texas and San Juan, Puerto Rico."

"Overall, container rates are expected to be below 2013 levels due to very competitive market conditions and a slight change in cargo mix. The new vessel capacity added in Puerto Rico in 2013 and expected to be added in Hawaii in 2014 will continue to impact rates as well."

"We expect 2014 financial results to approximate 2013 results, with 2014 adjusted EBITDA projected between $85.0 million and $95.0 million, compared with $95.2 million in fiscal 2013."
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

New Leadership at Alphatron Marine

Alphatron Marine announced that Arno Metzemakers will join the company's management team as General Manager responsible for all operational matters worldwide, effective June 1.

Damen's Oranjewerf Yard ISO 9001:2008 Certified

Damen Shiprepair Oranjewerf (DSO) has become the latest Damen ship repair yard to receive ISO 9001:2008 certification, demonstrating that the yard fulfils the requirements

The MN 100: Apply Now

The August 2016 edition of MarineNews, the leading voice in the North American workboat market, will feature 100 leaders and innovators, including workboat owners and operators,

Finance

Lower Large Dry Bulk Rates drag Baltic Index

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Thursday dragged down by lower demand for larger vessel segments.

EGAS: Egypt to tender for 10 LNG Cargoes

Egypt will tender next week to import 10 cargoes of liquefied natural gas (LNG) for delivery in July and August, an official from the state gas company, EGAS, said on Thursday.

Asia Dry Bulk-Capesize Rates Could Climb

More coal cargoes, rising oil prices could support rates. Freight rates for large capesize dry cargo ships on key Asian routes are likely to rise next week on

Container Ships

SOLAS Container Weight Requirements FAQ

With new rules regarding the declaration of the accurate gross mass of a packed containers due to enter force, the International Maritime Organization (IMO) answers

CMA CGM Proceeds with NOL Takeover after China Okay

CMA CGM, the world's third-largest container shipping firm, is to go ahead with its planned acquisition of Singapore's Neptune Orient Lines (NOL) after receiving regulatory clearance from China,

Singapore Exchange in Talks to buy Baltic Exchange

Baltic Exchange privately owned by 380 shareholders. The Singapore Exchange (SGX) is in exclusive talks to buy London's Baltic Exchange, which has been at the

Logistics

Lower Large Dry Bulk Rates drag Baltic Index

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Thursday dragged down by lower demand for larger vessel segments.

EGAS: Egypt to tender for 10 LNG Cargoes

Egypt will tender next week to import 10 cargoes of liquefied natural gas (LNG) for delivery in July and August, an official from the state gas company, EGAS, said on Thursday.

Asia Dry Bulk-Capesize Rates Could Climb

More coal cargoes, rising oil prices could support rates. Freight rates for large capesize dry cargo ships on key Asian routes are likely to rise next week on

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators
rss | archive | history | articles | privacy | 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: 0.1337 sec (7 req/sec)