Trailer Bridge today, Nov. 14, reported financial results for the third quarter ended Sept. 30, summarized by revenue of $28.2 million, an operating ratio of 90.2 percent and net income of $0.4 million.
The Jacksonville, Fla.-based provider of intermodal trucking and marine shipping services said its third-quarter results were impacted negatively by the startup of its new service, which is estimated to have incrementally reduced net income by $0.9 million during the third quarter, largely through the charter and fuel costs associated with the tug for the new service.
“Our new service started slow, both in terms of the Dominican Republic startup and putting the additional Puerto Rico capacity to work,” said John D. McCown, chairman and chief executive officer of Trailer Bridge. “While we did not meet our expectations in the third quarter, we believe it is related to the ramp-up in volume in the new service, which will continue to accelerate in coming quarters, and we anticipate achieving the goals that were behind our expansion.”
Total revenue for the three months ended Sept. 30 was down 2.4 percent compared to the $28.9 million reported in the third quarter of 2006 and a decrease of 4.5 percent sequentially compared to the second quarter of 2007. During the third quarter, southbound container volume declined 0.8 percent, and average revenue per load for containers moved southbound increased 1.2 percent from the year-earlier period.
Trailer Bridge reported operating income of $2.8 million in the third quarter of 2007, a decrease of 38.5 percent compared with operating income of $4.5 million in the third quarter of 2006. The company’s 2007 third-quarter net income was down 81.2 percent compared to net income of $1.9 million in the year-earlier period.
“We believe we can do better than that, and we’re striving to demonstrate that as soon as possible,” McCown said. “We have a lower-cost transportation system with demonstrated relative competitive advantages. We operate in markets with major entry barriers, and our prospects going forward remain bright.”