TRAILER BRIDGE EXTENDS LOSSES
Trailer Bridge Inc., the integrated trucking and U.S./Puerto Rico tug-and-barge service provider, reported deepening losses for its fourth quarter and full-year 2001 results.
The Jacksonville, Fla.-based company reported a fourth-quarter net loss of $13.3 million, compared to a deficit of $9.6 million in the fourth quarter of 2000. The company saw an operating loss of $12.6 million, compared to an operating loss of $5.1 million for the-year-earlier quarter. Revenue was $19.2 million, down from $23.5 million.
Southbound volumes decreased 15.1 percent and northbound volume fell 19.1 percent. Trailer Bridge's effective yield to and from Puerto Rico decreased 3.8 percent southbound and 5.0 percent northbound. The company's Puerto Rico deployed vessel capacity utilization was 66.1 percent southbound, down from 79.5 percent, while northbound utilization was 17.0 percent, down from 21.3 percent.
For 2001, Trailer Bridge reported a net loss of $29.4 million, compared to a loss of $10.3 million in 2000. The 2001 operating loss of $26.1 million, compared to an operating loss of $4.4 million in 2000. Revenue was $81.6 million, down from $91.7 million.
Trailer Bridge said it is seeing signs of a reduction in operating losses since the beginning of 2002, driven by the shutdown of its U.S. Northeast/Puerto Rico service, in addition to off-hiring leased equipment, headcount reductions, sold assets and other cost-reduction measures.
The company also expects to see stability in the volatile U.S./Puerto Rico trade, due to Sea Star Line's purchase of Navieras/NPR from the Holt Group Inc., which is under Chapter 11 bankruptcy protection.
'It is anticipated that this transaction will lead to a reduction in market capacity,' Trailer Bridge said.
The company said it has reached agreement with an affiliate to provide $4 million of new cash funds to be injected into the company. Trailer Bridge said the funds will be more than sufficient to meet operating and debt service needs.