Trailer Bridge Swings to Q4 Profit

Trailer Bridge swung to a profit of $1 million in the fourth quarter ended Dec. 31 from a loss of $1.1 million in the same quarter of 2008.

The Jones Act carrier said it earned the profit even after charges of $690,000 in severance payments as part of a reduction in force and $676,000 in legal and related expenses in connection with an ongoing Department of Justice investigation.

The Jacksonville-based company reported revenue of $30.7 million during the quarter, down 7.7 percent from the prior year period but an increase of 1.3 percent sequentially from the third quarter of 2009. Excluding the effect of fuel surcharges, revenue decreased by 0.8 percent from the prior year but increased 2.4 percent from the third quarter of 2009.

For full-year 2009, Trailer Bridge reported a profit of $2.6 million, compared to net loss of $3.2 million in 2008. It said the $2.6 million profit includes $690,000 in severance payments as part of a reduction in force and $1.7 million in legal and related expenses in connection with the ongoing Department of Justice investigation.

“We saw continued high capacity utilization in the (fourth) quarter with the exception of the seasonally slower last week of the year,” said Ivy Suter, Trailer Bridge’s CEO.

“Capacity utilization and revenue compared favorably to the third quarter of 2009 on one less sailing. Our operating and EBITDA margins expanded significantly vs. prior year, and we operated profitably for the third consecutive quarter,” she said in a statement.

“We expect capacity utilization to remain high in the first quarter of 2010 and beyond based on what we’re seeing in January,” Suter said.

The Company's deployed vessel capacity utilization during the fourth quarter was 92 percent southbound and 29.8 percent northbound, compared to 92.9 percent and 23.7 percent, respectively, during the fourth quarter of 2008, and 90.2 percent and 30.6 percent, respectively, sequentially.

Trailer Bridge’s overall volume southbound decreased 4.3 percent from the third quarter of 2009 and decreased 2.8 percent from the same quarter last year each on one less sailing.

Contact Peter T. Leach at pleach@joc.com.