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American Commercial Lines Announces First Quarter Results
JEFFERSONVILLE, Ind., May 6 /PRNewswire-FirstCall/ -- American Commercial Lines Inc. NASDAQ: ACLI ("ACL" or the "Company") today announced results for the first quarter ended March 31, 2008. Revenues for the quarter were $270.5 million, an 18.5% increase compared with $228.2 million for the first quarter of 2007. Net income for the quarter was $2.3 million or $0.05 per diluted share, compared to a net loss of $1.1 million or $0.02 per diluted share for the first quarter of 2007. Results for the first quarter of 2008 included an after tax benefit of $1.3 million or $0.03 per diluted share related to the decision not to withdraw from a multi-employer pension plan for certain represented employees of the Company's terminal operations. Results for the first quarter of 2007 included after tax debt retirement expenses of $13.6 million on the retirement of the Company's 9.5% senior notes which reduced earnings per share by $0.22. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) for the first quarter of 2008 were $23.0 million with an EBITDA margin of 8.5% compared to $35.3 million for the first quarter of 2007 with an EBITDA margin of 15.5%. The attachment to this press release reconciles net income to EBITDA. Michael P. Ryan, President and Chief Executive Officer, stated, "We faced many challenges during the quarter. Unfavorable operating conditions due to inclement weather drove a 70% increase in idle barge days compared to the prior year and resulted in twice as many lost production days in our shipyard. This resulted in significant inefficiencies in our transportation business and lower than expected manufacturing output. In addition, our operating costs continued to escalate, largely driven by an almost 60% increase in fuel cost per gallon over the first quarter of 2007. Despite these factors and weaker import demand as a result of the falling U.S. dollar, we continued to see positive barge freight pricing. We achieved productivity-related improvements in our manufacturing margins during the quarter. We will continue to execute our strategy and manage the business through these challenges, while implementing strict discipline around cost control, including a reduction of SG&A expenses that will result in $3 million of annual savings." Transportation Results The transportation segment's revenues increased 16.3% over the prior year to $204.8 million in the first quarter. The revenue increase was driven by increases in outside towing and charter/day rate revenues combined with an overall 16.1% increase in affreightment rates, largely driven by fuel escalation, on 4.5% lower affreightment ton-miles. On average, compared to the first quarter of 2007, the fuel neutral rate on the dry freight business increased 5.1% and the liquid freight business increased 6.7%. Total volume measured in ton-miles declined in the first quarter to 10.0 billion from 10.2 billion in the same period of the prior year, a decrease of 1.9%. On average, 5.3% fewer barges operated in the first quarter of this year compared to the first quarter of last year. Operating income in the transportation segment decreased 68.1% or $13.6 million to $6.4 million in the quarter ended March 31, 2008 compared to the prior year. This decline was due primarily to significant increases in fuel prices and unfavorable weather-related operating conditions. The Company estimates it had approximately $9.4 million in direct and indirect unrecovered fuel price increases. High water conditions caused by abnormally high precipitation levels over the past six months along the inland waterway increased idle barge days and drove additional cost inefficiencies of approximately $4.7 million during the quarter compared to the prior year. Manufacturing Results ACL's manufacturing business, Jeffboat, completed 89 barges during each of the first quarters of 2008 and 2007. In 2008, Jeffboat sold 79 dry hopper barges, 9 liquid tank barges and one special vessel. This was three fewer dry cargo barges, two additional liquid tank barges and one blue water vessel compared to first quarter 2007. No barges were built during the quarter for internal use by ACL in 2008 or 2007. Manufacturing revenues were $64.1 million in the first quarter compared to $52.1 million during the same period last year. This increase was driven by higher steel price pass-throughs and the additional liquid barge sales, despite the loss of over twice as many production days due to weather compared to last year. Manufacturing operating margin increased quarter-over-quarter from 3.8% to 5.2%, or an increase of $1.3 million to $3.3 million, primarily driven by improved labor utilization in the shipyard and the reduction in build hours per barge. Cash Flow and Debt During the first quarter, ACL spent $12.1 million on capital expenditures to support its infrastructure. The Company made a deposit of $8.5 million to purchase the remaining 70% interest in Summit Contracting on the last day of the quarter. This transaction closed on April 1, 2008. Debt increased $33.1 million during the quarter to $472.9 million. First Quarter 2008 Earnings Conference Call The company will conduct a conference call to review and discuss its first quarter financial results on May 7, 2008, at 10:00 a.m. eastern daylight time. The telephone numbers to access the ACL Conference Call are: Domestic (800) 591-6945 and International (617) 614-4911. The Participant Passcode is 14211655. The call may also be accessed live on the Company's internet web site at http://www.aclines.com. For those unable to participate in the live call or webcast, the ACL Conference Call will be archived at http://www.aclines.com within three hours of the conclusion of the live call and will remain available through July 6, 2008. American Commercial Lines Inc., headquartered in Jeffersonville, Indiana, is an integrated marine transportation and service company operating in the United States Jones Act trades, with approximately $1.0 billion in annual revenues and approximately 3,300 employees as of December 31, 2007. For more information about American Commercial Lines Inc. generally, visit http://www.aclines.com. Forward-Looking Statements This release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's present expectations and beliefs about future events. As with any projection or forecast, these statements are inherently susceptible to risks, uncertainty and changes in circumstance. Important factors could cause actual results to differ materially from those expressed or implied by the forward-looking statements and should be considered in evaluating the outlook of American Commercial Lines Inc. Risks and uncertainties are detailed from time to time in American Commercial Lines Inc.'s and its subsidiaries' filings with the SEC, including the Form 10-K for the year ended December 31, 2007 and the Company's Form 10-Q for the most recent quarter. American Commercial Lines Inc. is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of changes, new information, subsequent events or otherwise.
AMERICAN COMMERCIAL LINES INC.
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Dollars in thousands, except shares and per share amounts)
(Unaudited)
Quarter Ended March 31,
2008 2007
Revenues
Transportation and Services $206,454 $176,129
Manufacturing 64,062 52,115
Revenues 270,516 228,244
Cost of Sales
Transportation Services 181,038 140,604
Manufacturing 59,845 49,213
Cost of Sales 240,883 189,817
Gross Profit 29,633 38,427
Selling, General and Administrative Expenses 20,073 16,431
Operating Income 9,560 21,996
Other Expense (Income)
Interest Expense 6,732 3,181
Debt Retirement Expenses - 21,749
Other, Net (850) (1,230)
Other Expenses 5,882 23,700
Income (Loss) from Continuing Operations
before Income Taxes 3,678 (1,704)
Income Taxes (Benefit) 1,375 (638)
Income (Loss) from Continuing Operations 2,303 (1,066)
Discontinued Operations, Net of Tax 12 (46)
Net Income (Loss) $2,315 $(1,112)
Basic Income (loss) per common share:
Income (loss) from continuing
operations $0.05 $(0.02)
Income (loss) from discontinued
operations, net of tax - -
Basic Income (loss) per common share $0.05 $(0.02)
Income (loss) per common share -
assuming dilution:
Income (loss) from continuing operations $0.05 $(0.02)
Income (loss) from discontinued
operations, net of tax - -
Income (loss) per common share -
assuming dilution $0.05 $(0.02)
Weighted Average Shares Outstanding (1):
Basic 50,078,434 61,348,811
Diluted 50,924,915 61,348,811
(1) Gives effect to the two-for-one stock split to shareholders of record
on February 6, 2007.
AMERICAN COMMERCIAL LINES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except shares and per share amounts)
March 31, December 31,
2008 2007 (1)
(Unaudited)
ASSETS
Current Assets
Cash and Cash Equivalents $6,859 $5,021
Accounts Receivable, Net 125,371 114,921
Inventory 96,888 70,890
Deferred Tax Asset 3,010 2,582
Prepaid and Other Current Assets 42,460 26,661
Total Current Assets 274,588 220,075
Properties, Net 510,774 511,832
Investment in Equity Investees 3,436 3,456
Other Assets 25,775 25,448
Total Assets $814,573 $760,811
LIABILITIES
Current Liabilities
Accounts Payable $57,984 $61,130
Accrued Payroll and Fringe Benefits 15,615 15,720
Deferred Revenue 24,254 17,824
Accrued Claims and Insurance Premiums 16,957 15,647
Accrued Interest 1,859 1,688
Current Portion of Long Term Debt 750 -
Customer Deposits 11,636 5,596
Other Liabilities 31,823 32,036
Total Current Liabilities 160,878 149,641
Long Term Debt 472,850 439,760
Pension Liability 6,704 5,252
Deferred Tax Liability 30,815 26,569
Other Long Term Liabilities 14,399 14,198
Total Liabilities 685,646 635,420
STOCKHOLDERS' EQUITY
Common stock; authorized 250,000,000
shares at $.01 par value;
63,013,825 and 62,549,666
shares issued and outstanding
as of March 31, 2008 and
December 31, 2007, respectively 630 626
Treasury Stock; 12,574,412 and
12,407,006 shares at March 31, 2008
and December 31, 2007, respectively (312,457) (309,517)
Other Capital 283,565 279,266
Retained Earnings 149,913 148,426
Accumulated Other Comprehensive Income 7,276 6,590
Total Stockholders' Equity 128,927 125,391
Total Liabilities and
Stockholders' Equity $814,573 $760,811
(1) The Condensed Consolidated Balance Sheet at December 31, 2007 has been
derived from the audited consolidated financial statements at that
date, but does not included all the information and footnotes required
by generally accepted accounting principles.
AMERICAN COMMERCIAL LINES INC.
NET INCOME TO EBITDA RECONCILIATION
(Dollars in thousands)
(Unaudited)
Quarter Ended March 31,
2008 2007
Net Income (Loss) from Continuing Operations $2,303 $(1,066)
Discontinued Operations, Net of Income Taxes 12 (46)
Consolidated Net Income (Loss) $2,315 $(1,112)
Adjustments from Continuing Operations:
Interest Income (50) (24)
Interest Expense 6,732 3,181
Debt Retirement Expenses - 21,749
Depreciation and Amortization 12,646 12,211
Taxes 1,375 (638)
Adjustments from Discontinued Operations:
Interest Income (19) (54)
Depreciation and Amortization - -
Taxes 7 (28)
EBITDA from Continuing Operations 23,006 35,413
EBITDA from Discontinued Operations - (128)
Consolidated EBITDA $23,006 $35,285
EBITDA from Continuing Operations by
Segment:
Transportation Net Loss $(1,010) $(3,360)
Interest Income (48) (24)
Interest Expense 6,732 3,181
Debt Retirement Expenses - 21,749
Depreciation and Amortization 11,907 11,631
Taxes 1,375 (638)
Transportation EBITDA $18,956 $32,539
Manufacturing Net Income $3,507 $2,446
Interest Income - -
Interest Expense - -
Depreciation and Amortization 654 580
Taxes - -
Total Manufacturing EBITDA 4,161 3,026
Intersegment Profit (147) (152)
External Manufacturing EBITDA $4,014 $2,874
Management considers EBITDA to be a meaningful indicator of operating
performance and uses it as a measure to assess the operating performance
of the Company's business segments. EBITDA provides us with an
understanding of one aspect of earnings before the impact of investing
and financing transactions and income taxes. EBITDA should not be
construed as a substitute for net income or as a better measure of
liquidity than cash flow from operating activities, which is determined
in accordance with generally accepted accounting principles ("GAAP").
EBITDA excludes components that are significant in understanding and
assessing our results of operations and cash flows. In addition, EBITDA
is not a term defined by GAAP and as a result our measure of EBITDA might
not be comparable to similarly titled measures used by other companies.
However, the Company believes that EBITDA is relevant and useful
information, which is often reported and widely used by analysts,
investors and other interested parties in our industry. Accordingly, the
Company is disclosing this information to permit a more comprehensive
analysis of its operating performance.
AMERICAN COMMERCIAL LINES INC.
Statement of Operating Income by Reportable Segment
(Dollars in thousands)
(Unaudited)
Inter-
Reportable Segments All segment
Transpor- Manu- Other Elimin-
tation facturing Segments ation Total
Quarter ended March 31, 2008
Total revenue $204,937 $64,553 $1,930 $(904) $270,516
Intersegment revenues 116 491 297 (904) -
Revenue from external
customers 204,821 64,062 1,633 - 270,516
Operating expense
Materials, supplies and
other 77,427 - - - 77,427
Rent 6,205 - - - 6,205
Labor and fringe benefits 27,049 - - - 27,049
Fuel 54,240 - - - 54,240
Depreciation and
amortization 11,907 - - - 11,907
Taxes, other than income
taxes 4,144 - - - 4,144
Gain on disposition of
equipment (359) - - - (359)
Cost of goods sold - 59,845 425 - 60,270
Total cost of sales 180,613 59,845 425 - 240,883
Selling, general &
administrative 17,820 888 1,365 - 20,073
Total operating expenses 198,433 60,733 1,790 - 260,956
Operating income (loss) $6,388 $3,329 $(157) $- $9,560
Inter-
Reportable Segments All segment
Transpor- Manu- Other Elimin-
tation facturing Segments ation Total
Quarter ended March 31, 2007
Total revenue $176,250 $52,680 $- $(686) $228,244
Intersegment revenues 121 565 - (686) -
Revenue from external
customers 176,129 52,115 - - 228,244
Operating expense
Materials, supplies and
other 61,783 - - - 61,783
Rent 5,973 - - - 5,973
Labor and fringe benefits 25,097 - - - 25,097
Fuel 34,019 - - - 34,019
Depreciation and
amortization 11,631 - - - 11,631
Taxes, other than income
taxes 3,726 - - - 3,726
Gain on disposition of
equipment (1,625) - - - (1,625)
Cost of goods sold - 49,213 - - 49,213
Total cost of sales 140,604 49,213 - - 189,817
Selling, general &
administrative 15,534 897 - - 16,431
Total operating expenses 156,138 50,110 - - 206,248
Operating income (loss) $19,991 $2,005 $- $- $21,996
AMERICAN COMMERCIAL LINES INC.
SELECTED FINANCIAL AND NONFINANCIAL DATA
(Dollars in thousands except where noted)
(Unaudited)
Quarter Ended March 31,
2008 2007
Consolidated EBITDA $23,006 $35,285
Transportation Revenue and EBITDA
Revenue $204,821 $176,129
EBITDA 18,956 32,539
Manufacturing Revenue and EBITDA
(External and Internal)
Revenue $64,553 $52,680
EBITDA 4,161 3,026
Manufacturing External Revenue and EBITDA
Revenue $64,062 $52,115
EBITDA 4,014 2,874
Average Domestic Barges Operated
Dry 2,410 2,581
Liquid 386 372
Total 2,796 2,953
Fuel Price (Average Dollars per gallon) $2.81 $1.77
Capital Expenditures (including software) $12,594 $20,088
Management considers EBITDA to be a meaningful indicator of operating
performance and uses it as a measure to assess the operating performance
of the Company's business segments. EBITDA provides us with an
understanding of the Company's revenues before the impact of investing
and financing transactions and income taxes. EBITDA should not be
construed as a substitute for net income or as a better measure of
liquidity than cash flow from operating activities, which is determined
in accordance with generally accepted accounting principles ("GAAP").
EBITDA excludes components that are significant in understanding and
assessing our results of operations and cash flows. In addition, EBITDA
is not a term defined by GAAP and as a result our measure of EBITDA might
not be comparable to similarly titled measures used by other companies.
However, the Company believes that EBITDA is relevant and useful
information, which is often reported and widely used by analysts,
investors and other interested parties in our industry. Accordingly, the
Company is disclosing this information to permit a more comprehensive
analysis of its operating performance.
Website: http://www.aclines.com/ |
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