Revenue for the carrier was $28.4 million for the final quarter of 2010, compared to $30.7 million in the same 2009 period.
For the year, Trailer Bridge had a loss of $2.3 million in 2010, compared to a profit of $2.6 million in 2009. For 2010, revenue was $118.2 million, compared to $114.3 million in 2009.
A note in Trailer Bridge’s 10-K annual report said the company’s “continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its current debt obligations on a timely basis through refinancing, and ultimately to attain successful operations.”
The company said it has made “significant progress” on the re-financing of $82.5 million of 9.25 percent notes due November 2011, and expects to refinance the notes prior to their due date in November. The company also said it's working with two lenders on a combined refinancing to redeem the notes and concurrently refinance other indebtedness.
Ivy Suter, Trailer Bridge's chief executive office, said “we expect to give notice of redemption to the holders in the second quarter.”
Trailer Bridge's deployed vessel capacity use in the fourth quarter of 2010 was 97.5 percent southbound and 22.2 percent northbound, compared to 92 percent and 29.8 percent, respectively, during the fourth quarter of 2009 on one less sailing than the previous year.
The fourth-quarter sailing schedule was impacted by weather, which required additional expense of about $200,000 to insert an additional vessel and tug to return to normal schedule.
Suter said the company’s fourth quarter results were negatively impacted in two areas: its charter business and northbound liner accounts that are driven by payments from the Puerto Rico government.
“Shortfalls in these two areas account for the majority of the decline in earnings for the period, when combined with expenditures related to dry docking and an employment-related settlement.”
Trailer Bridge said it has installed new ramps on its vessels that will handle significantly heavier loads, allowing the company to attract new freight.
The company also said it had completed mandatory dry docking for two ro/ro barges it uses in its service. The company employs both ro/ro barges and barges to transport containers.
