Tax credit boosts Trailer BridgeÆs earnings
Trailer Bridge Inc., which had released preliminary earnings in early March, on Friday reporting final and audited results that reflect a $5.0 million income tax credit for the fourth quarter and year.
After the income tax credit, recorded in the fourth quarter as a reduction of the company’s deferred tax asset valuation allowance, the company reported net income of $8.9 million, compared to $2.8 million in the fourth quarter of 2005.
The Jacksonville, Fla.-based carrier saw revenue increase to $31.11 million, from $28.10 million in the year-earlier quarter. Operating income rose to $6.4 million, from $5.4 million.
For the year, Trailer Bridge reported a loss of $18,093 after the income tax credit, compared to a net profit of $7.8 million in 2005. Revenue increased 4.1 percent in 2006 to $110.2 million from $105.9 million in 2005.
At yearend, the company said it had a valuation allowance of $6.7 million remaining to further decrease income tax expense going forward.
'In releasing the allowance, formal budgets are given the most weight and this tax credit was calculated by applying a 38 percent tax rate to our 2007 business plan,' said John D. McCown, chief executive officer. 'As we utilize our deferred tax asset, we are evaluating the merits related to a tonnage tax election, an alternative that appears to offer permanent income tax benefits to Trailer Bridge.”
The carrier reported that the 2006 revenue increase was fueled by an increase in average revenue per southbound container of 5.9 percent. The company's Jacksonville/San Juan service deployed vessel capacity utilization in 2006 was 87.1 percent to Puerto Rico, and 25.6 percent from Puerto Rico, compared to 88.9 percent and 22.9 percent, respectively, in 2005. One of the company's two roll-on/roll off vessels was dry-docked during the first half of 2006, and triple-stack box carrier vessels were used as substitutes.
Tax credit boosts Trailer Bridge’s earnings
