Operating Income for the Quarter
increased 67.7% to $5.2 million
Rand Logistics, Inc. (NASDAQ:RLOG) (“Rand”), a leading provider of
bulk freight shipping services throughout the Great Lakes region,
today announced its financial results for the fiscal year 2017
third quarter ended December 31, 2016.
Quarter Ended December 31, 2016 Versus Quarter Ended
December 31, 2015 Financial Results
- Total Sailing Days were 1,281 compared to 1,292 in the prior
year period.
- Freight and related revenue generated from Company-operated
vessels (which excludes fuel and other surcharges) remained
relatively flat at $35.9 million compared to $35.9 million during
the year ago period.
- Freight and related revenue per Sailing Day increased $190, or
0.7%, to $27,998 compared to $27,808 per Sailing Day in the year
ago period.
- Vessel operating expenses decreased $2.2 million, or 8.8%, to
$22.2 million compared to $24.4 million during the year ago period.
Vessel operating expenses per Sailing Day decreased $1,512, or
8.0%, to $17,350 from $18,862.
- Vessel Margin per day increased $2,108, or 21.0%, from $10,027
in the prior year period to $12,135 this quarter.
- EBITDA increased $2.4 million, or 26.7%, to $11.4 million from
$9.0 million during the year ago period.
- Net loss was $0.6 million, or $0.03 per share on a fully
diluted basis, compared to a net loss of $4.2 million, or $0.23 per
share, in the prior year period.
Nine Months Ended December 31, 2016
Versus Nine Months Ended December 31, 2015 Financial
Results
- Total Sailing Days were 3,435 compared to 3,798 in the prior
year period.
- Freight and related revenue generated from Company-operated
vessels (which excludes fuel and other surcharges) decreased $12.2
million, or 10.3%, to $106.5 million compared to $118.7 million
during the year ago period.
- Freight and related revenue per Sailing Day decreased $260, or
0.8%, to $31,001 compared to $31,261 during the nine-month period
ended December 31, 2015.
- Vessel operating expenses decreased $17.9 million, or 22.1%, to
$63.1 million compared to $81.0 million during the year ago period.
Vessel operating expenses per Sailing Day decreased $2,947, or
13.8%, to $18,368 from $21,315.
- Vessel margin per day increased $994, or 7.9%, from $12,586 in
the prior year period to $13,580 in the nine-month period ended
December 31, 2016.
- EBITDA, before restructuring charges and impairment charges on
a retired vessel, decreased $0.7 million, or 1.9%, to $36.4 million
from $37.1 million during the prior year period.
- Net loss was $1.0 million, or $0.05 per share on a fully
diluted basis, compared to net income of $10.0 million, or $0.54
per share, in the year ago period.
Management Comments:
"We were generally pleased with our operating and financial
performance in both our fiscal 2017 third quarter and the 2016
sailing season," commented Ed Levy, President and CEO of Rand.
"Improving demand conditions in the quarter ended December 31,
2016, including incremental business generated from both new and
existing customers, helped to drive a 26.7% increase in EBITDA,
bringing year to date EBITDA near to the prior year level. We
achieved our 2016 sailing season results while sailing 363, or
9.6%, fewer days and carrying 6.7% less tons versus the 2015
season. We successfully offset weak demand for certain of the
commodities we transport and the continued weakness in the Canadian
dollar through effective operating cost controls and aggressive
management of our vessel capacity. These initiatives resulted in an
increase in vessel margin per day of 7.9%, or $994, on a year over
year basis.”
In January 2017, we operated for approximately 125 sailing days,
which was an increase of 48.8% compared with 84 days sailed in
January 2016.
“We are finalizing our nominations for the upcoming sailing
season. Consistent with the last four months, we believe that
demand will be firmer this year versus last year at this time. Many
of our customers are expressing a higher confidence level in their
business and are indicating that their requirements for the
upcoming sailing season are based on orders that they have already
been awarded versus their expectation of demand.” Mr. Levy
concluded, “Our intention for the 2017 sailing season is to
continue to drive efficiencies by managing our capacity and
operating expenses. This will position us to leverage vessel margin
per day with improvements in the demand environment.”
Conference CallManagement will hold a
conference call at 8:30 a.m. EST on Tuesday, February 14, 2017.
Interested parties may participate in the conference call by
dialing 1-888-797-2982 (1-913-312-0859 for international callers),
and using Conference ID# 5837408. The conference call will be
webcast simultaneously on the Rand Logistics, Inc. website at
www.randlogisticsinc.com/presentations.html. A presentation file
related to the conference call will be posted to the same
website.
A replay of the conference call will be
available at www.randlogisticsinc.com/presentations.html and will
be archived for 12 months. A replay will also be available until
March 14, 2017 by dialing 1-844-512-2921 (1-412-317-6671 for
international callers), and using Conference ID# 5837408.
Non-GAAP Financial Measures/Financial Tables
This press release contains certain non-GAAP financial measures,
including, when applicable, (1) operating income plus depreciation,
amortization of drydock costs, amortization of intangibles, loss
(gain) on foreign exchange, certain one-time equity-based severance
costs and loss on termination of vessel lease, and (2) operating
income plus depreciation, amortization of drydock costs and
amortization of intangibles. Such measures are used internally when
evaluating our operating performance and, we believe, allow
investors to make a more meaningful comparison between our business
operating results over different periods of time, as well as with
those of other similar companies. Management believes that such
measures, when viewed with the Company's results GAAP and the
accompanying reconciliations, provide useful information about our
operating performance and period-over-period comparisons.
Additionally, management believes that (1) operating income plus
depreciation, amortization of drydock costs, amortization of
intangibles, loss (gain) on foreign exchange, restructuring charges
and impairment charges on retired asset and (2) operating income
plus depreciation, amortization of drydock costs and amortization
of intangibles permit investors to gain an understanding of the
factors and trends affecting our ongoing cash earnings. However,
the Company's definition of such measures may differ from other
companies reporting similarly named measures, and such measures are
not measures of financial performance or liquidity under GAAP and,
accordingly, should not be considered as an alternative to net
income or cash flow from operating activities as indicators of
operating performance or liquidity. Instead, such performance
measures should be viewed in addition to, and not in lieu of, or
superior to, our operating performance measures calculated in
accordance with GAAP. Reconciliations of these and other non-GAAP
measures to the comparable GAAP measures are included in the
attached financial tables.
About Rand Logistics Rand
Logistics, Inc. is a leading provider of bulk freight shipping
services throughout the Great Lakes region. Through its
subsidiaries, the Company operates a fleet of three conventional
bulk carriers and twelve self-unloading bulk carriers including
three tug/barge units. The Company is the only carrier able to
offer significant domestic port-to-port services in both Canada and
the U.S. on the Great Lakes. The Company's vessels operate under
the U.S. Jones Act – which reserves domestic waterborne commerce to
vessels that are U.S. owned, built and crewed – and the Canada
Coasting Trade Act – which reserves domestic waterborne commerce to
Canadian registered and crewed vessels that operate between
Canadian ports.
Forward-Looking Statements This press release
contains forward-looking statements which reflect management’s
current views with respect to certain future events and Rand’s
operations, performance and financial condition. Forward-looking
statements are made only as of the date of this press release.
Forward-looking statements include, but are not limited to: Rand’s
future operating or financial results; Rand’s anticipated plans,
goals or objectives of our management for operations and services,
including future cost reduction initiatives; Rand’s anticipated
financial position and liquidity, including Rand's ability to
remain in compliance with debt covenants, growth regulatory and
competitive outlook, investment and expenditure plans, investment
results, strategic alternatives, business strategies, and other
similar statements of expectations or objectives; and Rand’s
outlook and financial and other guidance. For all forward-looking
statements, we claim the protection of the Safe Harbor for
Forward-Looking Statements contained in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are
inherently subject to risks and uncertainties, many of which cannot
be predicted with accuracy or are otherwise beyond our control and
some of which might not even be anticipated. Future events and
actual results, affecting our strategic plan as well as our
financial position, results of operations and cash flows, could
differ materially from those described in or contemplated by the
forward-looking statements.
Important factors that contribute to such risks include, but are
not limited to, the effect of any economic downturn in certain of
our markets; the weather conditions on the Great Lakes; our ability
to maintain and replace our vessels as they age; changes in
customer demand; changes in shipping regulations; fluctuations in
currencies and interest rates; changes in fuel price and fuel
surcharges; adequacy of capital resources, including the ability to
refinance or obtain financing in the future; expectations of
vessels’ useful lives and the estimated obligations, and the timing
thereof, relating to vessel repair or maintenance work; expected
capital spending or operating expenses, including dry-docking and
insurance costs; the ability to comply with or regain compliance
with applicable regulations, Nasdaq listing requirements, and
Rand’s debt covenants; changes in laws, regulations or tax rates,
or the outcome of pending legislative or regulatory initiatives;
and potential liability from pending or future litigation.
The risks included are not exhaustive. For a
more detailed description of these uncertainties and other factors,
please see the "Risk Factors" section in Rand's Annual Report on
Form 10-K filed with the Securities and Exchange Commission on June
16, 2016 and in Rand’s Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on November 10, 2016.
― financial tables to follow ―
|
|
RAND LOGISTICS, INC. |
Consolidated Statements of Operations
(Unaudited) |
(U.S. Dollars 000’s except for Shares and Per
Share data) |
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Three months ended |
|
Nine months ended |
|
Nine months ended |
|
|
|
December 31, 2016 |
|
December 31, 2015 |
|
December 31, 2016 |
|
December 31, 2015 |
REVENUE |
|
|
|
|
|
|
|
|
|
|
|
|
Freight and related
revenue |
|
$ |
35,866 |
|
$ |
35,928 |
|
$ |
106,489 |
|
$ |
118,731 |
|
|
Fuel and other
surcharges |
|
|
1,930 |
|
|
1,617 |
|
|
4,364 |
|
|
11,144 |
|
|
Outside
voyage charter revenue |
|
|
— |
|
|
8,217 |
|
|
— |
|
|
12,647 |
|
TOTAL REVENUE |
|
|
37,796 |
|
|
45,762 |
|
|
110,853 |
|
|
142,522 |
|
|
|
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
|
|
|
|
Outside voyage charter
fees |
|
|
— |
|
|
8,250 |
|
|
— |
|
|
12,743 |
|
|
Vessel operating
expenses |
|
|
22,225 |
|
|
24,370 |
|
|
63,095 |
|
|
80,956 |
|
|
Repairs and
maintenance |
|
|
27 |
|
|
220 |
|
|
1,112 |
|
|
1,117 |
|
|
General and
administrative |
|
|
3,797 |
|
|
3,811 |
|
|
11,527 |
|
|
10,210 |
|
|
Depreciation |
|
|
5,185 |
|
|
4,782 |
|
|
15,686 |
|
|
14,092 |
|
|
Amortization of drydock
costs |
|
|
746 |
|
|
877 |
|
|
2,353 |
|
|
2,644 |
|
|
Amortization of
intangibles |
|
|
247 |
|
|
268 |
|
|
752 |
|
|
824 |
|
|
(Gain) Loss on foreign
exchange, net |
|
|
357 |
|
|
92 |
|
|
(1,306 |
) |
|
397 |
|
|
Restructuring
charges |
|
|
— |
|
|
— |
|
|
2,375 |
|
|
— |
|
|
Impairment charges on retired asset |
|
|
— |
|
|
— |
|
|
1,872 |
|
|
— |
|
TOTAL EXPENSES |
|
|
32,584 |
|
|
42,670 |
|
|
97,466 |
|
|
122,983 |
|
OPERATING INCOME |
|
|
5,212 |
|
|
3,092 |
|
|
13,387 |
|
|
19,539 |
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
(INCOME) AND EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
5,449 |
|
|
3,079 |
|
|
13,345 |
|
|
9,060 |
|
|
Interest and other income |
|
|
(15 |
) |
|
(2 |
) |
|
(19 |
) |
|
(6 |
) |
|
|
|
|
5,434 |
|
|
3,077 |
|
|
13,326 |
|
|
9,054 |
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE INCOME TAXES |
|
|
(222 |
) |
|
15 |
|
|
61 |
|
|
10,485 |
|
(RECOVERY)
PROVISION FOR INCOME TAXES |
|
|
|
|
|
|
|
|
|
|
|
Deferred |
|
|
(33 |
) |
|
3,862 |
|
|
(164 |
) |
|
(466 |
) |
|
|
|
|
(33 |
) |
|
3,862 |
|
|
(164 |
) |
|
(466 |
) |
NET INCOME (LOSS) BEFORE PREFERRED STOCK DIVIDENDS |
|
|
(189 |
) |
|
(3,847 |
) |
|
225 |
|
|
10,951 |
|
PREFERRED STOCK DIVIDENDS |
|
|
426 |
|
|
351 |
|
|
1,207 |
|
|
1,000 |
|
NET (LOSS) INCOME APPLICABLE TO COMMON
STOCKHOLDERS |
|
$ |
(615 |
) |
$ |
(4,198 |
) |
$ |
(982 |
) |
$ |
9,951 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income per share basic |
|
$ |
(0.03 |
) |
$ |
(0.23 |
) |
$ |
(0.05 |
) |
$ |
0.55 |
|
Net (loss)
income per share diluted |
|
|
(0.03 |
) |
|
(0.23 |
) |
|
(0.05 |
) |
|
0.54 |
|
Weighted
average shares basic |
|
|
18,445,350 |
|
|
18,091,303 |
|
|
18,381,880 |
|
|
17,984,278 |
|
Weighted
average shares diluted |
|
|
18,445,350 |
|
|
18,091,973 |
|
|
18,381,880 |
|
|
20,396,276 |
|
|
|
|
|
|
|
|
|
|
|
|
RAND LOGISTICS, INC. |
|
Consolidated Balance Sheets
(Unaudited) |
|
(U.S. Dollars 000’s except for Shares and Per
Share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
March 31, 2016 |
|
ASSETS |
|
|
|
|
|
|
CURRENT |
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
312 |
|
$ |
77 |
|
|
|
Accounts receivable,
net |
|
|
15,939 |
|
|
2,697 |
|
|
|
Income taxes
receivable |
|
|
38 |
|
|
47 |
|
|
|
Prepaid
expenses and other current assets |
|
|
5,894 |
|
|
6,320 |
|
|
Total
current assets |
|
|
22,183 |
|
|
9,141 |
|
|
|
|
|
|
|
|
|
|
PROPERTY
AND EQUIPMENT, NET |
|
|
211,270 |
|
|
228,504 |
|
|
OTHER
ASSETS |
|
|
52 |
|
|
102 |
|
|
DEFERRED
DRYDOCK COSTS, NET |
|
|
5,774 |
|
|
6,660 |
|
|
INTANGIBLE
ASSETS, NET |
|
|
5,046 |
|
|
5,904 |
|
|
GOODWILL |
|
|
10,193 |
|
|
10,193 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
254,518 |
|
$ |
260,504 |
|
|
LIABILITIES |
|
|
|
|
|
|
CURRENT |
|
|
|
|
|
|
|
Accounts payable |
|
|
7,535 |
|
|
17,822 |
|
|
|
Accrued
liabilities |
|
|
11,253 |
|
|
8,144 |
|
|
|
Other current
liability |
|
|
99 |
|
|
776 |
|
|
|
Income taxes
payable |
|
|
14 |
|
|
34 |
|
|
|
Current
portion of deferred payment liability |
|
|
135 |
|
|
564 |
|
|
Total
current liabilities |
|
|
19,036 |
|
|
27,340 |
|
|
LONG-TERM
DEBT |
|
|
114,138 |
|
|
112,426 |
|
|
SUBORDINATED DEBT |
|
|
77,907 |
|
|
75,317 |
|
|
DEFERRED INCOME TAXES |
|
|
5,464 |
|
|
5,825 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
216,545 |
|
|
220,908 |
|
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Preferred stock, $.0001
par value, |
|
|
|
|
|
|
|
Authorized 1,000,000
shares, Issued and outstanding 295,480 shares at December 31, 2016
and at March 31, 2016 |
|
|
14,674 |
|
|
14,674 |
|
|
|
Common stock, $.0001
par value, |
|
|
|
|
|
|
|
Authorized 50,000,000
shares, Issuable and outstanding 18,624,431 shares at December 31,
2016 and 18,359,397 shares at March 31, 2016 |
|
|
1 |
|
|
1 |
|
|
|
Additional paid-in
capital |
|
|
91,321 |
|
|
90,993 |
|
|
|
Accumulated
deficit |
|
|
(57,519 |
) |
|
(56,537 |
) |
|
|
Accumulated other comprehensive loss |
|
|
(10,504 |
) |
|
(9,535 |
) |
|
|
|
|
|
|
|
|
|
Total stockholders’ equity |
|
|
37,973 |
|
|
39,596 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
254,518 |
|
$ |
260,504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RAND LOGISTICS,
INC |
|
|
|
|
|
|
|
|
|
Non-GAAP
Financial Measures / Financial Tables |
|
FY2017 - Q3 |
|
(U.S. Dollars
000's except in "Per Day Statistics") |
|
|
|
|
|
|
|
|
|
|
|
FY2017 Actual |
FY2016 Actual |
Increase/(Decrease) |
FX Impact (Unfavorable)/Favorable |
Constant Currency Increase/(Decrease)
1 |
|
|
|
|
|
Change $ |
Change % |
Change $ |
Change $ |
Change % |
|
|
|
|
|
|
|
|
|
|
|
Average Fx Rate |
|
|
0.750 |
|
|
0.749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sailing Days |
|
|
1,281 |
|
|
1,292 |
|
|
(11 |
) |
-0.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Highlights (US$ '000s) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight and Related Revenue |
|
$ |
35,866 |
|
$ |
35,928 |
|
-$ |
62 |
|
-0.2 |
% |
-$ |
8 |
|
-$ |
54 |
-0.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel and Other Surcharges |
|
$ |
1,930 |
|
$ |
1,617 |
|
$ |
313 |
|
19.4 |
% |
$ |
2 |
|
$ |
311 |
19.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue |
|
$ |
37,796 |
|
$ |
45,762 |
|
-$ |
7,966 |
|
-17.4 |
% |
-$ |
6 |
|
-$ |
7,960 |
-17.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operation Expenses |
|
$ |
22,225 |
|
$ |
24,370 |
|
-$ |
2,145 |
|
-8.8 |
% |
$ |
3 |
|
-$ |
2,148 |
-8.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessel Margin |
|
$ |
15,544 |
|
$ |
12,955 |
|
$ |
2,590 |
|
20.0 |
% |
-$ |
9 |
|
$ |
2,598 |
20.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General & Admin Expense |
|
$ |
3,797 |
|
$ |
3,268 |
|
$ |
529 |
|
16.2 |
% |
$ |
1 |
|
$ |
528 |
16.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on foreign exchange |
|
$ |
357 |
|
$ |
92 |
|
$ |
265 |
|
287.7 |
% |
$ |
20 |
|
$ |
245 |
266.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA before Restructuring Charges |
|
$ |
11,747 |
|
$ |
9,111 |
|
$ |
2,636 |
|
28.9 |
% |
-$ |
12 |
|
$ |
2,648 |
29.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Day Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marine Freight Revenue/Day |
|
$ |
27,998 |
|
$ |
27,808 |
|
$ |
190 |
|
0.7 |
% |
-$ |
6 |
|
$ |
195 |
0.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue/Day |
|
$ |
29,505 |
|
$ |
35,420 |
|
-$ |
5,915 |
|
-16.7 |
% |
-$ |
4 |
|
-$ |
5,911 |
-16.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessel Margin/Day |
|
$ |
12,135 |
|
$ |
10,027 |
|
$ |
2,108 |
|
21.0 |
% |
-$ |
6 |
|
$ |
2,114 |
21.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Reconciliation (US$ '000s) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessel margin |
|
$ |
15,544 |
|
$ |
12,955 |
|
|
|
|
|
|
|
Outside Charter net margin |
|
$ |
0 |
|
-$ |
33 |
|
|
|
|
|
|
|
General & Admin Expense |
|
$ |
3,797 |
|
$ |
3,268 |
|
|
|
|
|
|
|
Adjusted EBITDA 3 |
|
$ |
11,747 |
|
$ |
9,654 |
|
|
|
|
|
|
|
Loss on foreign exchange 2 |
|
$ |
357 |
|
$ |
92 |
|
|
|
|
|
|
|
One-time equity based severance costs |
|
$ |
0 |
|
$ |
543 |
|
|
|
|
|
|
|
EBITDA |
|
$ |
11,390 |
|
$ |
9,019 |
|
|
|
|
|
|
|
Depreciation, Amortization of Dry-dock & Intangibles |
|
$ |
6,178 |
|
$ |
5,927 |
|
|
|
|
|
|
|
Operating Income |
|
$ |
5,212 |
|
$ |
3,092 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: |
|
|
|
|
|
|
|
|
|
1. The constant currency information presented is calculated
by translating current period results using prior period foreign
currency exchange rates. |
|
|
|
|
|
|
|
|
|
|
|
2. (Gain) Loss on foreign exchange during the three month
period ended December 31, 2016 includes a non-cash loss on
translation of approximately $40.3 million USD denominated debt
incurred in March 2014 and carried on the balance sheet of the
Canadian subsidiary. |
|
|
|
|
|
|
|
|
|
|
|
3. Adjusted EBITDA is defined as operating income plus
depreciation, amortization of drydock costs, amortization of
intangibles, (gain) loss on foreign exchange, restructuring charges
and impairment charges on retired vessel. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RAND LOGISTICS,
INC |
|
|
|
|
|
|
|
|
|
Non-GAAP
Financial Measures / Financial Tables |
|
FY2016 - December 2016 YTD |
|
(U.S. Dollars
000's except in "Per Day Statistics") |
|
|
|
|
|
|
|
|
|
|
|
FY2017 Actual |
FY2016 Actual |
Increase/(Decrease) |
FX Impact (Unfavorable)/Favorable |
Constant Currency Increase/(Decrease)
1 |
|
|
|
|
|
Change $ |
Change % |
Change $ |
Change $ |
Change % |
|
|
|
|
|
|
|
|
|
|
|
Average Fx Rate |
|
|
0.764 |
|
|
0.776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sailing Days |
|
|
3,435 |
|
|
3,798 |
|
|
(363 |
) |
-9.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Highlights (US$ '000s) |
|
|
|
|
|
|
|
|
|
|
|
Freight and Related Revenue |
|
$ |
106,489 |
|
$ |
118,731 |
|
-$ |
12,242 |
|
-10.3 |
% |
-$ |
843 |
|
-$ |
11,399 |
-9.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel and Other Surcharges |
|
$ |
4,364 |
|
$ |
11,144 |
|
-$ |
6,780 |
|
-60.8 |
% |
-$ |
48 |
|
-$ |
6,732 |
-60.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue |
|
$ |
110,853 |
|
$ |
142,522 |
|
-$ |
31,669 |
|
-22.2 |
% |
-$ |
891 |
|
-$ |
30,778 |
-21.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessel Operating Expenses |
|
$ |
63,095 |
|
$ |
80,956 |
|
-$ |
17,861 |
|
-22.1 |
% |
-$ |
505 |
|
-$ |
17,356 |
-21.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessel Margin |
|
$ |
46,646 |
|
$ |
47,802 |
|
-$ |
1,156 |
|
-2.4 |
% |
-$ |
360 |
|
-$ |
796 |
-1.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
General & Admin Expense |
|
$ |
11,527 |
|
$ |
9,652 |
|
$ |
1,875 |
|
19.4 |
% |
-$ |
59 |
|
$ |
1,934 |
20.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) Loss on foreign exchange |
|
-$ |
1,306 |
|
$ |
397 |
|
-$ |
1,703 |
|
-428.5 |
% |
$ |
64 |
|
-$ |
1,767 |
-444.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA before Restructuring Charges |
|
$ |
35,119 |
|
$ |
37,496 |
|
-$ |
2,377 |
|
-6.3 |
% |
-$ |
303 |
|
-$ |
2,074 |
-5.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Day Statistics |
|
|
|
|
|
|
|
|
|
|
|
Marine Freight Revenue/Day |
|
$ |
31,001 |
|
$ |
31,261 |
|
-$ |
260 |
|
-0.8 |
% |
-$ |
245 |
|
-$ |
15 |
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue/Day |
|
$ |
32,268 |
|
$ |
37,526 |
|
-$ |
5,258 |
|
-14.0 |
% |
-$ |
263 |
|
-$ |
4,995 |
-13.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessel Operating Expenses/Day |
|
$ |
18,368 |
|
$ |
21,315 |
|
-$ |
2,947 |
|
-13.8 |
% |
-$ |
147 |
|
-$ |
2,800 |
-13.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessel Margin/Day |
|
$ |
13,580 |
|
$ |
12,586 |
|
$ |
994 |
|
7.9 |
% |
-$ |
104 |
|
$ |
1,098 |
8.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Reconciliation (US$ '000s) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessel margin |
|
$ |
46,646 |
|
$ |
47,802 |
|
|
|
|
|
|
|
Outside Charter net margin |
|
$ |
0 |
|
-$ |
96 |
|
|
|
|
|
|
|
General & Admin Expense |
|
$ |
11,527 |
|
$ |
9,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA 3 |
|
$ |
35,119 |
|
$ |
38,054 |
|
|
|
|
|
|
|
(Gain) Loss on foreign exchange |
|
-$ |
1,306 |
|
$ |
397 |
|
|
|
|
|
|
|
One-time equity based severance costs |
|
$ |
0 |
|
$ |
558 |
|
|
|
|
|
|
|
EBITDA |
|
$ |
36,425 |
|
$ |
37,099 |
|
|
|
|
|
|
|
Impairment Charges on Assets held for Sale |
|
$ |
1,872 |
|
$ |
0 |
|
|
|
|
|
|
|
Restructuring Charges |
|
$ |
2,375 |
|
$ |
0 |
|
|
|
|
|
|
|
Depreciation, Amortization of Dry-dock & Intangibles |
|
$ |
18,791 |
|
$ |
17,560 |
|
|
|
|
|
|
|
Operating Income |
|
$ |
13,387 |
|
$ |
19,539 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: |
|
|
|
|
|
|
|
|
|
1. The constant currency information presented is calculated
by translating current period results using prior period foreign
currency exchange rates. |
|
|
|
|
|
|
|
|
|
|
|
2. (Gain) Loss on foreign exchange during the nine month
period ended December 31, 2016 includes a non-cash loss on
translation of approximately $40.3 million USD denominated debt
incurred in March 2014 and carried on the balance sheet of the
Canadian subsidiary. |
|
|
|
|
|
|
|
|
|
|
|
3. Adjusted EBITDA is defined as operating income plus
depreciation, amortization of drydock costs, amortization of
intangibles, (gain) loss on foreign exchange, restructuring charges
and impairment charges on retired vessel. |
|
|
|
CONTACT:
Rand Logistics, Inc.
Corporate Communications:
Annemarie Dobler
(212) 863-9429
apdobler@randlogisticsinc.com