Trailer Bridge Reports 2009 Third Quarter Financial Results

Company to Hold Conference Call on November 11, 2009 at 11:00 AM ET

2009 Third Quarter Financial Highlights

• Operating income increases 57.8% to $4.1 million
• Net income improves to $1.7 million, or $0.14 per share
• EBITDA improves 36.9% to $5.7 million

• Press Release
• Source: Trailer Bridge, Inc.
• On 4:15 pm EST, Tuesday November 10, 2009

JACKSONVILLE, Fla.--(BUSINESS WIRE)--Trailer Bridge, Inc. (NASDAQ Global Market: TRBR) today reported unaudited financial results for the third quarter ended September 30, 2009 (see attached tables). The Company reported operating income of $4.1 million in the third quarter of 2009, compared to operating income of $2.6 million in the third quarter of 2008; and net income of $1.7 million, or $0.14 per basic and diluted share, for the third quarter of 2009, compared to net income of approximately $34,000, or $0.00 per basic and diluted share, in the year earlier period. EBITDA for the third quarter of 2009 was $5.7 million, a 36.9% improvement from $4.1 million in the year earlier period, and a $0.9 million improvement sequentially from Q2 2009. Adjusted EBITDA, as detailed in the accompanying table, was $6.3 million in the third quarter of 2009.

Related Quotes

Symbol	Price	Change
TRBR	4.94	-0.09

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The Company reported revenue of $30.3 million during the quarter, down 14.4% from the prior year period but an increase of 8.7% sequentially from the second quarter of 2009. Excluding the effect of fuel surcharges, revenue decreased by 4.1% from the prior year but increased 6.6% from the second quarter of 2009.

Ivy Suter, Trailer Bridge’s Chief Executive Officer, said, “We saw increased capacity utilization in the quarter with a favorable trend of growth throughout the period. Our increased capacity utilization and revenue compared to the second quarter of 2009 produced profitable operations. The flexibility of our system has permitted us to better utilize our assets and transportation system. We continue to focus on asset utilization, operational excellence and streamlined costs to best position ourselves in our respective markets and offer a cost-efficient service. Our robust cash generation and strong financial position permitted us to purchase $1.5 million face amount of our outstanding public debt at attractive rates. We will continue to focus on free cash flow through revenue generation and cost reduction.”

The Company's deployed vessel capacity utilization during the third quarter was 90.2% southbound and 30.6% northbound, compared to 81.9% and 23.0%, respectively, during the third quarter of 2008, and 82.8% and 31.4%, respectively, sequentially. Overall volume southbound increased 12.4% from the second quarter of 2009 and decreased 6.9% from the same quarter last year.

Financial Position

At September 30, 2009, the Company had cash balances of $10.3 million and working capital of $11.3 million. The Company has no outstanding amount on its $10.0 million revolving credit facility, and, based upon eligible receivables, currently has $9.5 million of availability under this facility. During the nine months ended September 30, 2009 net cash from operating activities was $8.6 million.

During the three months ended September 30, 2009 the Company paid approximately $1.4 million to purchase $1.5 million (face amount) of its 9.25% Senior Secured Notes in open market transactions. The aggregate principal outstanding on the 9.25% Senior Secured Notes following the Company’s purchases was $83.5 million. This partial retirement resulted in a gain on extinguishment of debt of $132,500 in the third quarter of 2009.

Conference Call

The Company will discuss these results in a conference call on Wednesday, November 11, 2009 at 11:00 AM ET. The dial in numbers are (888) 737-9834 (US) and (706) 643-9215 (International).

The call will also be simultaneously broadcast over the Internet. To listen to the live webcast, please go to www.trailerbridge.com and click on the conference call link, or go directly to: http://investor.shareholder.com/media/eventdetail.cfm?mediaid=39407&c=TRBR&mediakey=EF9F878C6DAC3C7B4841B50067B5EB8F&e=0.

The webcast will be archived and accessible for approximately 30 days if you are unable to listen to the live call.

Trailer Bridge provides integrated trucking and marine freight service to and from all points in the lower 48 states and Puerto Rico and Dominican Republic, bringing efficiency, service, security and environmental and safety benefits to domestic cargo in that traffic lane. This total transportation system utilizes its own trucks, drivers, trailers, containers and U.S. flag vessels to link the mainland with Puerto Rico via marine facilities in Jacksonville, San Juan and Puerto Plata. Additional information on Trailer Bridge is available at the www.trailerbridge.com website.

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The matters discussed in this press release include statements regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to the future operating performance of the Company and its asset utilization. Investors are cautioned that any such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward looking statements as a result of various factors. Without limitation, these risks and uncertainties include the risks of economic recessions, the risk of an ongoing Department of Justice investigation into the pricing practices in the Puerto Rico trade, the outcome of related class action lawsuits, severe weather, changes in the price of fuel, changes in demand for transportation services offered by the Company, capacity conditions in the Puerto Rico trade lane and changes in rate levels for transportation services offered by the Company.

Use of Non-GAAP measures

(1) The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). The Company also believes that the presentation of certain non-GAAP measures, i.e., results excluding certain costs and expenses, provides useful information for the understanding of its ongoing operations and enables investors to focus on comparisons of operating performance from period to period without the impact of significant special items. Non-GAAP measures are reconciled in the accompanying financial table. The Company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for the Company’s reported GAAP results.

Adjusted EBITDA is calculated by adding back legal expenses associated with the anti-trust litigation, dry-docking, non-cash compensation charges, loss on asset sales, and strategic alternative fees. Adjusted EBITDA was calculated on a twelve month trailing rate for purposes of calculating net debt to adjusted EBITDA.

Trailer Bridge, Inc.
Ivy Barton Suter, 800-554-1589
Chief Executive Officer
www.trailerbridge.com
or
TRBR Investor Relations Counsel:
The Equity Group Inc.
Adam Prior, 212-836-9606
www.theequitygroup.com