Rand Logistics Announces Expectations for 2017 Sailing Season
March 27 2017 - 5:59PM
Rand Logistics, Inc. (NASDAQ:RLOG) (“Rand”), a leading provider of
bulk freight shipping services throughout the Great Lakes region,
today announced its outlook for the 2017 Sailing Season. In
summary, the Company anticipates improved financial performance
over the 2016 Sailing Season based on recent contract wins,
improved customer demand and continued cost savings initiatives.
“We are projecting to sail approximately 3,600 days with 14
vessels in the 2017 season, including all six of our Canadian
flagged self-unloaders, our three Canadian flagged bulkers, and
five of our six U.S. flagged self-unloaders. For comparison
purposes, we sailed 3,560 days in the 2016 Sailing Season and we
operated 14 of our vessels. We do not expect to utilize any
third-party vessels to haul our customer tonnage in the 2017
Sailing Season, and we are presently evaluating several
return-generating alternatives for our sixth U.S. flagged
self-unloader," stated Ed Levy, Rand's President and Chief
Executive Officer.
"Based on the current market environment and assuming no change
in the U.S./Canadian foreign exchange rate, we are projecting
vessel margin per day for our fiscal year ending March 31, 2018 to
be approximately $13,400, or 12% greater than preliminary vessel
margin per day for our fiscal year ended March 31, 2017,” continued
Mr. Levy.
"Market conditions for the commodities that we carry have
improved compared to this time last year. There still remains
leftover grain tonnage from 2016's record setting Canadian harvest,
and, at current prices, iron ore exporting is economically
attractive and causing tighter capacity in our market. We were
successful in increasing market share with certain of our customers
whose contracts we renewed over the last 120 days, and we are
pleased with our tonnage nominations for the upcoming sailing
season. Based on current market conditions and customer nominations
received to date, we are expecting our tonnage hauled to increase
7% in the 2017 Sailing Season compared the 2016 Sailing Season,”
Mr. Levy concluded.
“We are well on our way to achieving an additional $1 million of
annual cost savings, which will result in approximately $5 million
of aggregate cost savings since we commenced a comprehensive
evaluation of our cost structure at the beginning of 2016. These
reductions have been realized in a number of areas, including
insurance, provisions, spare parts, and general and administration
expenses. Our cost savings program is part of an initiative to
improve return on invested capital,” stated Mark Hiltwein, Rand's
Chief Financial Officer.
“Our 2017 operational initiatives include continuing to
rationalize our cost structure, managing capital expenses,
continuing to improve our operational efficiencies and achieving a
higher value-added revenue. We are also actively focused on
strategies to refinance our debt,” Mr. Hiltwein concluded.
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 StatementsThis
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; Rand's views on growth opportunities, the 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. Our actual results and
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 February 14, 2017.
CONTACT:
Rand Logistics, Inc.
Corporate Communications:
Annemarie Dobler
(212) 863-9429
apdobler@randlogisticsinc.com