Horizon Lines Reaches Agreement in Principle to Reduce Debt
Charlotte, N.C. --- Horizon Lines Inc. announced that it has signed a restructuring support agreement with more than 96 percent of its note holders to further deleverage the Company's balance sheet in connection with, and contingent upon, a restructuring of the vessel charter obligations related to the Company's discontinued trans-Pacific service. "We greatly appreciate the support of our note holders to help facilitate this potential restructuring to reduce the company's indebtedness, and also thank our employees for their continued dedication and hard work," said Stephen H. Fraser, President and Chief Executive Officer. "Over the past year, Horizon Lines has taken a number of actions to restructure our business, reduce debt and improve liquidity.
Horizon Lines Reports Weak 3Q Financials
Quarter Negatively Impacted by Goodwill Impairment Charge, FSX Losses, Volume and Rate Pressures. Horizon Lines, Inc. (OTCQB: HRZL) has reported financial results for the fiscal third quarter ended September 25, 2011. Financial results are being presented on a continuing operations basis, excluding discontinued logistics operations. On a GAAP basis, the third-quarter net loss from continuing operations totaled $126.5 million, or $4.09 per diluted share, on revenue from continuing operations of $321.9 million. On an adjusted basis, the company recorded a third-quarter net loss from continuing operations of $5.6 million, or $0.18 per diluted share, after excluding charges totaling $120.9 million, after tax, or $3.91 per share.
Horizon Lines Discontinuing Trans-Pacific FSX Service
Company Will Conduct Orderly Transition to Minimize Supply Chain Disruptions. Last Voyage of FSX Service from China Expected on November 2; Final Sailings to Guam on November 8 and 10. Horizon Lines, Inc. (OTCQB: HRZL), the nation's leading domestic ocean shipping company, today announced it will discontinue its Five Star Express (FSX) trans-Pacific container shipping service between the U.S. West Coast, Guam and China. Horizon is implementing an orderly transition plan, beginning October 31, 2011, and will work aggressively to mitigate any supply chain disruptions for its customers. Discontinuation of the FSX Guam and China services will have no impact on the company's domestic ocean services in Alaska, Hawaii, or Puerto Rico.
Horizon Lines Promotes Alherd Kazura to VP International Services
Horizon Lines, Inc. (NYSE: HRZ), the nation's leading domestic ocean shipping company, today announced that Alherd Kazura has been appointed to the new position of Vice President of International Services. Mr. Kazura will report to Brian Taylor, Executive Vice President, Chief Operating Officer and Chief Commercial Officer of Horizon Lines, Inc. Mr. Kazura was previously Vice President International Planning and Development at Horizon, where among other responsibilities he led the transition team that established the carrier's Five Star Express (FSX) trans-Pacific service in December 2010.
Horizon Lines Q1 2011 Results
Horizon Lines, Inc. (NYSE: HRZ) reported financial results for the fiscal first quarter ended March 27, 2011. As a result of previously announced plans to discontinue the logistics business, financial results are being presented on a continuing operations basis, excluding the discontinued logistics operations. On a GAAP basis, the first-quarter net loss from continuing operations totaled $33.3 million, or $1.08 per diluted share, on revenue from continuing operations of $285.4 million. On an adjusted basis, the first-quarter net loss from continuing operations totaled $28.0 million, or $0.90 per diluted share, after excluding charges totaling $5.4 million after tax, or $0.18 per diluted share.
Horizon Lines 15-Day Transit Time for Cargo
Horizon Lines (NYSE:HRZ) announced it has instituted a 15-day transit schedule for containerized cargo shipped from Shanghai to Kansas City with its new International service. The company launched the Five-Star Express (FSX) trans-Pacific ocean service between China and the United States in December, and selected Kansas City as a key hub for its express ocean-rail intermodal package. "Our goal is to offer the fastest weekly deliveries by using scheduled intermodal rail service from Los Angeles," said Brian Taylor, Senior Vice President, Chief Commercial Officer, for Horizon Lines. "We believe the 15-day Shanghai-to-Kansas City schedule is the best in our industry. The ocean carrier commenced the FSX service with a sailing from Ningbo, China, on December 14 and Shanghai on December 15.
