Horizon Line reports $18.8 million loss
Jones Act carrier Horizon Lines Inc. reported a fourth quarter net loss of $18.8 million, compared to profit of $10.7 million in the same 2007 period.
The company said the results for the period ended Dec. 21 reflected an impairment charge, restructuring charge and antitrust related legal expenses totaling $32.4 million pre-tax.
Adjusted net income, which excludes these items on an after-tax basis, totaled $2.8 million for the quarter.
| Raymond |
During the quarter Horizon had revenue of $314.7 million compared to $316 million in the same 2007 period.
“Our company faced an extremely challenging environment in the fourth quarter, but we performed well under the circumstances,” said Chuck Raymond, chairman, president and chief executive officer. “We generated adjusted free cash flow totaling $47.9 million, paid down $37.5 million in debt, and achieved adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $24.7 million for the quarter and $130 million for the year. We completed the quarter with adequate corporate liquidity and in compliance with our credit facility financial covenants.
“Volumes during the quarter were negatively impacted by the continued sharp downturn of our Hawaii market, and ongoing weakness in Puerto Rico, which is in its third year of recession,” Raymond said. “Partially offsetting this was a slight volume increase in our Alaska market and modest revenue per container increases across all of our trade lanes. The overall rate increase of 2.3 percent, net of fuel, was due in part to our focus on refrigerated and other higher- value cargo.'
Raymond said Horizon believes “2009 will be a very challenging year for the ocean transport industry with the world economies likely sinking deeper into a recession and financial markets continuing in disarray.”
