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Cox continued, "With this solid quarter behind us, our outlook for the full year has shifted slightly higher. We continue to expect mixed results in our ocean transportation trade lanes as compared to 2012, as evidenced by a decrease in
2013 Outlook
Ocean Transportation: In the first quarter of 2013,
The Company's terminal operations joint venture, SSAT, continues to be negatively impacted by significantly reduced lift volume due to customer losses from prior years. It is therefore expected that SSAT will operate at a breakeven level for the year.
In addition to the trade lane and terminal operations outlook, the Company expects to continue to benefit from operating a nine-ship fleet for most of 2013 and lower outside transportation costs, both of which are the result of a lighter dry-dock schedule.
As described above, operating income for the full year in the Ocean Transportation segment is expected to improve moderately from the prior year. Performance for the remaining three quarters of 2013 is expected to improve modestly from levels achieved in 2012, although some variance in comparative quarterly performance is anticipated.
Logistics: Volume in Logistics' intermodal and highway businesses grew at a healthy pace in the quarter, offset by declines in warehouse operations and international intermodal margins. However, meaningful cost cutting measures instituted in 2012 led to flat year-over-year operating income. Due to anticipated volume growth and expense control, operating income margin for Logistics is expected to be 1-2 percent of revenues in 2013, returning to a level similar to 2011.
Other: The Company expects capital expenditures for 2013 to be approximately
By Segment - All figures reported for three months ended
Ocean Transportation
Three Months Ended | ||||||||||
(Dollars in millions) |
2013 |
2012 |
Change | |||||||
Revenue |
$ |
299.9 |
$ |
279.5 |
7.3 |
% | ||||
Operating income |
$ |
18.5 |
$ |
5.8 |
219.0 |
% | ||||
Operating income margin |
6.2 |
% |
2.1 |
% |
||||||
Volume (units) 1 |
||||||||||
|
34,300 |
32,500 |
5.5 |
% | ||||||
|
23,000 |
16,900 |
36.1 |
% | ||||||
|
14,200 |
13,700 |
3.6 |
% | ||||||
|
5,800 |
6,100 |
(4.9%) |
|||||||
|
2,400 |
1,500 |
60.0 |
% | ||||||
1. Approximate container volumes included for the period are based on the voyage departure date, but revenue and operating income are adjusted to reflect the percentage of revenue and operating income earned during the reporting period for voyages that straddle the beginning or end of each reporting period.
2. In |
Ocean transportation revenue increased
Container volume increased in three of the trade lanes served by the Company in the first quarter:
Ocean transportation operating income increased
The Company's SSAT joint venture contributed
Logistics
Three Months Ended | ||||||||||||
(Dollars in millions) |
2013 |
2012 |
Change | |||||||||
Intermodal revenue |
$ |
56.8 |
$ |
52.6 |
8.0 |
% | ||||||
Highway revenue |
38.0 |
34.0 |
11.8 |
% | ||||||||
Total Revenue |
$ |
94.8 |
$ |
86.6 |
9.5 |
% | ||||||
Operating income |
$ |
0.2 |
$ |
0.3 |
(33.3%) |
|||||||
Operating income margin |
0.2 |
% |
0.3 |
% |
||||||||
Logistics revenue increased
Logistics operating income decreased modestly, by
Cash Generation & Capital Allocation
Debt Levels
Total debt as of
Teleconference and Webcast
About the Company
Founded in 1882,
GAAP to Non-GAAP Reconciliation
This press release, the Form 8-K and information to be discussed in the conference call include non-GAAP measures. While
Forward-Looking Statements
Statements in this news release that are not historical facts are "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement, including but not limited to risks and uncertainties relating to regional, national and international economic conditions; new or increased competition; fuel prices and our ability to collect fuel surcharges; our relationship with vendors, customers and partners and changes in related agreements; the actions of our competitors, including the timing of the entry of a competitor in the
| |||||
Three Months Ended | |||||
2013 |
2012 | ||||
Operating Revenue: |
|||||
Ocean transportation |
$ |
299.9 |
$ |
279.5 | |
Logistics |
94.8 |
86.6 | |||
Total operating revenue |
394.7 |
366.1 | |||
Costs and Expenses: |
|||||
Operating costs |
342.8 |
329.7 | |||
Equity in income of terminal joint venture |
(0.2) |
(0.8) | |||
Selling, general and administrative |
33.4 |
28.6 | |||
Separation costs |
- |
2.5 | |||
Operating costs and expenses |
376.0 |
360.0 | |||
Operating Income |
18.7 |
6.1 | |||
Interest expense |
3.7 |
2.0 | |||
Income from Continuing Operations Before |
15.0 |
4.1 | |||
Income tax expense |
5.9 |
2.1 | |||
Income From Continuing Operations |
9.1 |
2.0 | |||
Income from Discontinued Operations (net of |
- |
1.8 | |||
Net Income |
$ |
9.1 |
$ |
3.8 | |
Basic Earnings (Loss) Per Share: |
|||||
Continuing operations |
$ |
0.21 |
$ |
0.05 | |
Discontinued operations |
- |
0.04 | |||
Net income |
$ |
0.21 |
$ |
0.09 | |
Diluted Earnings (Loss) Per Share: |
|||||
Continuing operations |
$ |
0.21 |
$ |
0.05 | |
Discontinued operations |
- |
0.04 | |||
Net income |
$ |
0.21 |
$ |
0.09 | |
Weighted Average Number of Shares Outstanding:
|
|||||
Basic |
42.6 |
41.9 | |||
Diluted |
43.0 |
42.3 | |||
Cash Dividends Per Share |
$ |
0.15 |
$ |
0.315 |
| |||||
|
| ||||
ASSETS |
|||||
Cash |
$ |
11.0 |
$ |
19.9 | |
Other current assets |
204.4 |
214.2 | |||
Total current assets |
215.4 |
234.1 | |||
Investment in terminal joint venture |
59.7 |
59.6 | |||
Property — net |
759.0 |
762.5 | |||
Other Assets |
115.1 |
118.1 | |||
Total |
$ |
1,149.2 |
$ |
1,174.3 | |
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|||||
Current portion of long-term debt |
$ |
17.4 |
$ |
16.4 | |
Other current liabilities |
168.4 |
177.0 | |||
Total current liabilities |
185.8 |
193.4 | |||
Long-term debt |
283.7 |
302.7 | |||
Deferred income taxes |
249.1 |
251.9 | |||
Employee benefit plans |
108.3 |
108.0 | |||
Other Liabilities |
38.2 |
38.4 | |||
Total long-term liabilities |
679.3 |
701.0 | |||
Total shareholders' equity |
284.1 |
279.9 | |||
Total |
$ |
1,149.2 |
$ |
1,174.3 |
Net Debt and EBITDA Reconciliation
As of | |
Total Debt: |
|
(Less) Total Cash |
(11.0) |
Net Debt |
|
Three Months Ended |
Last Twelve Months | ||||||||||||
(in $ millions) |
2013 |
2012 |
Change |
||||||||||
Net Income |
$ |
9.1 |
$ |
3.8 |
$ |
5.3 |
$ |
51.2 | |||||
Subtract: Income from discontinued operations |
- |
1.8 |
(1.8) |
(7.9) | |||||||||
Add: Income tax expense |
5.9 |
2.1 |
3.8 |
36.8 | |||||||||
Add: Interest expense |
3.7 |
2.0 |
1.7 |
13.4 | |||||||||
Add: Depreciation and amortization |
17.3 |
18.7
|
(1.4) |
70.7 | |||||||||
EBITDA(1) |
$ |
36.0 |
$ |
24.8 |
$ |
11.2 |
$ |
180.0 | |||||
(1) EBITDA is defined as the sum of net income, less income or loss from discontinued operations, plus income tax expense, interest expense and depreciation and amortization. EBITDA should not be considered as an alternative to net income (as determined in accordance with GAAP), as an indicator of our operating performance, or to cash flows from operating activities (as determined in accordance with GAAP) as a measure of liquidity. Our calculation of EBITDA may not be comparable to EBITDA as calculated by other companies, nor is this calculation identical to the EBITDA used by our lenders to determine financial covenant compliance. | |||||||||||||
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SOURCE
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