Trailer Bridge focused on return to profitability, improving operations in 2009

By Jennifer Lanning Drey

Portland, Ore., March 26 - Trailer Bridge, Inc.'s current leadership team is focused on returning the company to profitability, which it views as a first step toward refinancing debt scheduled to mature in 2011, Ralph W. Heim, president and interim chief executive officer of Trailer Bridge, said during a Thursday conference call held to discuss the company's fourth-quarter results.

"Our fundamental service - what we do for a living here - works, and our goal is to have a 2009 that doesn't have some of the things we saw in 2008," Heim said.

Trailer Bridge's fourth-quarter revenues increased by 5.7% as compared to the prior-year period, but the company reported a $1.1 million net loss for the fourth quarter, which included a one-time $830,000 compensation charge related to the departure of its former chief executive officer.

As previously reported, Trailer Bridge is being investigated as part of an ongoing U.S. Department of Justice antitrust investigation into pricing practices among Puerto Rico carriers.

The company ended 2008 with cash and cash equivalents of $7.2 million and had $4.1 million in a cash reserve fund that secures long-term debt.

The new Trailer Bridge leadership is revisiting all spending activities in an effort to maximize cash generation, and the company finished 2008 with a sailing schedule and operating costs that were in line with expectations, Heim said.

Borrowing activity

Trailer Bridge had full availability under its $10 million revolving line of credit facility at Dec. 31.

During the fourth quarter, Trailer Bridge drew the remaining $4.1 million available under an existing capital expenditures term loan line to purchase 200 new roll-door containers and for general working capital.

The company drew a total of $9.1 million on the line during 2008. There are no financial covenants associated with the facility as long as the company maintains at least $3 million of availability on its revolving line of credit.

When asked whether the company has considered repurchasing its debt at a discount, Trailer Bridge's management said it has no current plans, as the company is more comfortable maintaining its liquidity.

Trailer Bridge is a Jacksonville, Fla., integrated trucking and marine freight service company.

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