Trailer Bridge continues turnaround
Jacksonville, Fla.-based operator Trailer Bridge Inc. moved into the black in the fourth quarter and year ended Dec. 31, as freight rates and ship utilization increased on its U.S. mainland/Puerto Rico services.
For the quarter, Trailer Bridge earned a net income of $1.9 million, as compared to a net loss of a $1.4 million in the fourth quarter of 2003. For the year, the carrier reported a net income of $4.4 million, compared to a deficit of $5.5 million in 2003.
Preferred stock adjustments totaling $676,279 reduced net income attributable to common shares for the fourth quarter to $1.3 million. Based on the completed Kadampanattu Corp. purchase, the preferred stock of Trailer Bridge has now been extinguished.
Revenue for the three months ended Dec. 31 rose 26 percent to $27.8 million. Revenue per load for containers moved southbound increased 7 percent. The company said its vessel capacity utilization to Puerto Rico increased to 104 percent, from 91 percent in the fourth quarter of 2003.
“The effects of an improving supply/demand equation are evident in our actual fourth quarter results,” said John D. McCown, chairman and chief executive officer of Trailer Bridge.
Trailer Bridge’s operating result for the fourth quarter was a profit of $3.9 million, whereas it had an operating deficit of about $700,000 a year earlier.
“The company was able to consistently achieve higher utilization on its Triplestack Box Carrier vessels during the quarter as high load volume allowed it to optimize its cargo mix and have container stack heights above previous experienced capacity,” Trailer Bridge said.
Trailer Bridge boosted its total revenue 14 percent to $98.8 million last year, from $86.4 million in 2003. Its operating income for 2004 was $8.6 million — or 8.7 percent of revenue — whereas the company suffered an operating loss of $2.6 million in 2003.
The company’s profit for 2004 follows more than six years of losses.
