Trailer Bridge’s profits soar in first quarter
U.S. mainland/Puerto Rico operator Trailer Bridge boosted its first quarter net income to $1 million from a loss of about $90,000 in the same quarter of 2004.
“This is the eighth straight quarter where we’ve seen meaningful year-over-year improvement at the bottom line,” said John D. McCown, chairman and chief executive officer of Trailer Bridge. “We are pleased with the rates we are seeing in our contract renewals as the effect of the sector’s improved supply/demand dynamics continue to roll through the lane.”
The company’s operating income more than tripled to $3.5 million in the latest quarter from $1 million in the first quarter of 2004. Operating income as a percentage of revenue jumped to 14 percent from 4 percent.
“The improvement in operating income and the resulting improved operating ratio are primarily due to significant reductions in rent expense on vessels and equipment, partially offset by the related increase in depreciation expense,” Trailer Bridge said.
The shipping company’s first quarter revenue rose 6 percent to $24.4 million, due largely to higher southbound rates. Southbound volume decreased 4 percent and northbound volume decreased 27 percent. But the yield of all of the southbound cargo increased about 8 percent, including a 7 percent increase in revenue per load for southbound containers. Revenue per northbound container rose 8 percent in the first quarter.
The company’s Jacksonville/San Juan deployed vessel capacity utilization during the first quarter was 92 percent to Puerto Rico and 19 percent from Puerto Rico, compared to 92 percent and 27 percent, respectively, during the first quarter of 2004.