Trailer Bridge reports progress on note refinancings, posts 4Q net loss

user-gravatar

Trailer Bridge

Trailer Bridge Inc. announced significant progress on the refinancing of its $82.5 million notes due November 2011 and that it expects to accomplish this goal prior to the due date. Trailer Bridge says it is working actively with two lenders on a combined refinancing to redeem the notes and concurrently refinance other indebtedness of the company.

“We are pleased with the progress we have made on the refinancing of our notes due in November 2011, and we expect to give notice of redemption to the holders in the second quarter,” said Ivy Suter, chief executive officer. “We are also pleased with the completion of our new loading ramp in San Juan that will enhance our capabilities and the expected completion of our regulatory five-year dry docking on our two ro/ro vessels, both on schedule and on budget.”

The Jacksonville, Fla.-based company also posted financial results for the fourth quarter and 12 months both ended Dec. 31. For the fourth quarter, the company had revenue of $28.4 million, down 7.6 percent from the prior-year period and down 3.0 period sequentially from the third quarter of 2010. Excluding the effect of fuel surcharges, revenue decreased 11.3 percent from the prior-year period and 4.0 percent from the third quarter of 2010. The company reported an operating loss of $0.4 million versus operating income of $3.6 million in the prior-year period and $2.5 million in the third quarter of 2010. Net loss was $2.9 million compared to net income of $1.0 million in the prior-year period. Expenses related to the ro/ro dry docking were about $446,000, and there was a nonrecurring employment-related settlement charge of about $200,000.

For the year, Trailer Bridge reported revenue of $118.2 million, up 3.4 percent from $114.3 million in the prior-year period. Excluding the effect of fuel surcharges, revenue increased by 0.3 percent. Operating income was $7.7 million compared to $12.7 million. The company posted a net loss of $2.3 million compared to net income of $2.6 million.

Suter said the company also expects to report a loss in the first quarter of 2011 due to the expense of the ro/ro drydockings as well as the disruption associated with a ro/ro sailing only every other week. “With our dry-docking and ramp projects completed, we expect to return to our normal deployment in the second quarter,” Suter said.