Trailer Bridge, Inc. (NASDAQ Global Market: TRBR) today
announced unaudited financial results for its first quarter ended
March 31, 2011 (see attached tables).
Operational Review The Company's deployed vessel capacity
utilization during the first quarter was 88.8% southbound and 22.6%
northbound, compared to 96.5% and 30.2%, respectively, during the
first quarter of 2010, and 97.5% and 22.2%, respectively,
sequentially from the fourth quarter of 2010.
Completion of Two Ro/Ro Vessel Five-Year Regulatory Dry
Docking / Resumes Weekly Service During the first quarter, each
of the Company’s two roll-on, roll-off vessels was sequentially out
of service as work related to five-year regulatory requirements was
being performed. The Company resumed its regular deployment in late
April. Trailer Bridge incurred $6.6 million of expense in the first
quarter of 2011 related to the dry-docking of this vessel as
compared to $445,000 in the fourth quarter of 2010 and no such
expense in the prior year period.
First Quarter Financial Review
- The Company had revenue of $24.8
million during the quarter, compared to $28.8 million in the prior
year. Charter revenues were lower during the period at $50,000,
compared to $1.3 million in the prior year period, and lower by
$0.05 million sequentially from the fourth quarter of 2010.
- The Company reported an operating loss
of $8.0 million in the first quarter of 2011, including dry-docking
expenses of $6.6 million, compared to operating income of $2.2
million in the prior year period and an operating loss of $0.4
million in the fourth quarter of 2010.
- Net loss for the first quarter of 2011
was $10.4 million, or $0.86 per basic and diluted share, compared
to a net loss of $0.3 million, or $0.03 per basic and diluted
share, in the prior-year period. Increased fuel prices drove the
net fuel expense to $2.7 million, up $1.2 million over the prior
period. Adjusted EBITDA, as detailed in the accompanying table, was
$0.4 million in the first quarter of 2011.
Refinancing Status The Company’s previously discussed
refinancing effort has not come to completion. The Company
continues actively working with interested lenders and its advisors
to refinance the $82.5 million in public notes due in November
2011. The Company is exploring a number of options and might
involve the private or public lending market and may include an
equity component. The interest rate the Company pays on its overall
debt may be higher under such refinancing than previously
anticipated.
Financial Position At March 31, 2011, the Company had
cash balances of $3.1 million and working capital deficit of $83.1
million due to the inclusion of the $82.5 million in Notes due in
November 2011. As of March 31, 2011, the Company had no outstanding
amount on its $10.0 million revolving credit facility, and, based
upon eligible receivables, had $6.6 million of availability under
this facility. During the twelve months ended March 31, 2011, net
cash used in operating activities was $5.6 million.
Conference Call The Company will discuss these results in
a conference call on Monday, May 16, 2011 at 10:00 AM ET.
Participant Dial-In Numbers:
(In the United States): 877-407-9210 (International):
201-689-8049
Webcast The call will also be simultaneously broadcast
over the Internet. To listen to the live webcast, please go to
www.trailerbridge.com and click on the conference call link, or go
directly to:
http://www.investorcalendar.com/IC/CEPage.asp?ID=164285
Phone Replay Information A recorded
replay of the call will be available until May 23, 2011. Listeners
may dial:
(In the United States):
877-660-6853
(International):
201-612-7415
The following replay passcodes are both required for
playback: Account #: 286 Conference ID #: 371511
About Trailer Bridge, Inc. Trailer Bridge provides
integrated trucking and marine freight service to and from all
points in the lower 48 states and Puerto Rico and Dominican
Republic, bringing efficiency, service, security and environmental
and safety benefits to domestic cargo in that traffic lane. This
total transportation system utilizes its own trucks, drivers,
trailers, containers and U.S. flag vessels to link the mainland
with Puerto Rico via marine facilities in Jacksonville, San Juan
and Puerto Plata. Additional information on Trailer Bridge is
available at the www.trailerbridge.com website.
This press release contains statements that constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. The matters discussed in
this press release include statements regarding the intent, belief
or current expectations of the Company, its directors or its
officers with respect to the future operating performance of the
Company and its asset utilization. Investors are cautioned that any
such forward looking statements are not guarantees of future
performance and involve risks and uncertainties, and that actual
results may differ materially from those in the forward looking
statements as a result of various factors. Without limitation,
these risks and uncertainties include the risks of changes in
demand for transportation services offered by the Company, the
Company’s ability to refinance its existing maturing debt,
maintenance of its revolving credit facility, changes in rate
levels for transportation services offered by the Company, changes
in the cost of fuel, unfavorable outcomes from the United States
Department of Justice (“DOJ”) investigation and related class or
individual actions, economic recessions, de-listing from the Nasdaq
stock exchange, equipment and driver condition and availability and
severe weather as well the ability to retain and/or attract the
necessary personnel and maintain necessary vendor
relationships.
TRAILER BRIDGE, INC.
CONDENSED STATEMENTS OF
OPERATIONS
(unaudited)
Three Months Ended March 31,
2011 2010 OPERATING REVENUES $ 24,813,947 $
28,844,964 OPERATING EXPENSES: Salaries, wages, and benefits
3,512,894 4,039,755 Purchased transportation and other rent
7,270,339 7,175,202 Fuel 5,077,919 4,293,654
Operating and maintenance (exclusive of
depreciation & dry-docking shown separately below)
6,305,477 6,558,082 Dry-Docking 6,610,263 - Taxes and licenses
138,299 178,824 Insurance and claims 768,314 771,933 Communications
and utilities 185,570 171,789 Depreciation and amortization
1,563,025 1,540,742 (Gain) loss on sale of property & equipment
(778 ) 21,344 Other operating expenses 1,397,767
1,862,933 32,829,089 26,614,258
OPERATING (LOSS) INCOME (8,015,142 ) 2,230,706
NONOPERATING (EXPENSE) INCOME: Interest expense (2,368,980 )
(2,535,191 ) Interest income 1,444
4,386 LOSS BEFORE PROVISION FOR INCOME TAXES
(10,382,678 ) (300,099 ) PROVISION FOR INCOME TAXES (7,200 )
(7,470 ) NET LOSS $ (10,389,878 ) $ (307,569 )
PER SHARE AMOUNTS: NET LOSS PER SHARE BASIC $ (0.86 ) $
(0.03 ) NET LOSS PER SHARE DILUTED $ (0.86 ) $ (0.03 )
WEIGHTED AVERAGE SHARES OUTSTANDING BASIC AND DILUTED
12,016,681 12,013,788
TRAILER BRIDGE, INC.
CONDENSED BALANCE SHEETS
March 31, December 31, 2011 2010
(uaudited) ASSETS Current Assets: Cash and cash equivalents $
3,125,474 $ 11,481,965 Trade receivables, less allowance for
doubtful accounts of $982,843 and $1,065,955 13,825,733 13,022,057
Prepaid and other current assets 2,558,185 2,397,948 Deferred
income taxes, net 225,645 225,645 Total
current assets 19,735,037 27,127,615 Property and equipment,
net 82,774,629 82,631,050 Reserve fund for long-term debt 4,639,479
4,638,215 Other assets 1,961,541 2,004,426
TOTAL ASSETS $ 109,110,686 $ 116,401,306
LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities:
Accounts payable $ 6,488,774 $ 7,411,181 Accrued liabilities
9,930,236 4,725,030 Unearned revenue 1,023,315 1,410,963 Current
portion of long-term debt 85,374,700
85,374,700 Total current liabilities 102,817,025 98,921,874
Long-term debt, less current portion 16,774,927
17,795,827 TOTAL LIABILITIES
119,591,952 116,717,701 Commitments and
Contingencies Stockholders' Deficit: Preferred stock, $.01
par value, 1,000,000, shares authorized; no shares issued or
outstanding - - Common stock, $.01 par value, 20,000,000 shares
authorized; 12,102,587 shares issued; 12,016,681 shares outstanding
at March 31, 2011 and December 31, 2010 121,026 121,026 Treasury
stock, at cost, 85,906 shares at March 31, 2011 and December 31,
2010 (318,140 ) (318,140 ) Additional paid-in capital 54,838,650
54,613,643 Capital deficit (65,122,802 ) (54,732,924
) TOTAL STOCKHOLDERS' DEFICIT (10,481,266 ) (316,395
) TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 109,110,686
$ 116,401,306
TRAILER BRIDGE, INC.
CONDENSED STATEMENTS OF CASH
FLOWS
THREE MONTHS ENDED MARCH 31,
2011 2010 (unaudited) (unaudited) Operating activities: Net
loss $ (10,389,878 ) $ (307,569 ) Adjustments to reconcile net loss
to net cash (used in) provided by operating activities:
Depreciation and amortization 1,563,025 1,540,742 Amortization of
loan costs 234,739 236,334 Non-cash stock compensation expense
225,007 226,071 Provision for doubtful accounts 114,734 194,024
(Gain) loss on sale of property and equipment (778 ) 21,344
(Increase) decrease in: Trade receivables (918,411 ) (2,179,429 )
Prepaid and other current assets (160,237 ) 486,778 Other assets
(199,153 ) 3,392 (Decrease) increase in: Accounts payable (922,407
) 870,140 Accrued liabilities 5,205,206 1,908,706 Unearned revenue
(387,648 ) 115,567 Net cash (used in) provided by
operating activities (5,635,801 ) 3,116,100
Investing activities: Purchases of property and equipment
(1,712,335 ) (290,660 ) Proceeds from sale of property and
equipment 12,546 46,600 Additions to other assets -
(385,999 ) Net cash used in investing activities
(1,699,789 ) (630,059 ) Financing activities:
Exercise of stock options - 12,999 Principal payments on notes
payable (1,020,901 ) (2,037,346 ) Net cash used in
financing activities (1,020,901 ) (2,024,347 )
Net (decrease) increase in cash and cash equivalents (8,356,491 )
461,694 Cash and cash equivalents, beginning of the period
11,481,965 10,987,379 Cash and cash
equivalents, end of period $ 3,125,474 $ 11,449,073
Supplemental cashflow information: Cash paid for interest $
738,756 $ 921,887
TRAILER BRIDGE, INC.
RECONCILIATION OF GAAP NET LOSS, TO
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION &
AMORTIZATION; AND ADJUSTED EARNINGS
BEFORE INTEREST, TAXES, DEPRECIATION &
AMORTIZATION (1)
(UNAUDITED)
Three months ended Three months ended
March 31, 2011 March 31, 2010
GAAP, Net loss $ (10,389,878 ) $ (307,569 ) Net interest expense
2,367,536 2,530,805 Depreciation and amortization 1,563,025
1,540,742 Provision for income taxes 7,200
7,470 Non-GAAP, EBITDA $ (6,452,117 ) $
3,771,448 Adjustments: Dry-docking 6,610,263 - Stock
compensation 225,007 226,071 Anti-trust related legal expense
25,260 379,902 (Gain) loss on asset sales (778 )
21,344 Total Adjustments 6,859,752
627,317 Non-GAAP, Adjusted EBITDA $ 407,635
$ 4,398,765 Other financial measures:
EBITDA margin (26.0 )% 13.1 % Adjusted EBITDA margin 1.6 % 15.2 %
Net debt to adjusted EBITDA
7.9
x
3.9
x
Adjusted EBITDA to interest expense
0.2
x
1.7
x
Use of Non-GAAP measures
(1) The Company reports its financial results in accordance with
U.S. generally accepted accounting principles (GAAP). The Company
also believes that the presentation of certain non-GAAP measures,
i.e., results excluding certain costs and expenses, provides useful
information for the understanding of its ongoing operations and
enables investors to focus on comparisons of operating performance
from period to period without the impact of significant special
items. Non-GAAP measures are reconciled in the accompanying
financial table. The Company cautions that non-GAAP measures should
be considered in addition to, but not as a substitute for the
Company’s reported GAAP results.
Adjusted EBITDA is calculated by adding back legal expenses
associated with the anti-trust litigation, dry-docking, non-cash
compensation charges, and loss/gain on asset sales. Adjusted EBITDA
was calculated on a twelve month trailing rate for purposes of
calculating net debt to adjusted EBITDA. Adjusted EBITDA for the
twelve months trailing March 31, 2011 and 2010 was $11,932,573 and
$23,062,368, respectively.
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