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For the first six months of 2013,
Cox continued, "Amid these positive results, in late June our Board of Directors authorized an increase in our dividend, demonstrating confidence in our ability to continue to return cash to our shareholders while investing in and growing our businesses."
"As we look to the balance of this year, we expect overall results to modestly exceed the results achieved in the second half of 2012, reflecting a full year cycle of limited economic recovery in the markets we serve."
Second Half 2013 Outlook
Ocean Transportation: In the second 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 the balance of the year and lower outside transportation costs, both of which are the result of a lighter dry-dock schedule as compared to 2012.
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 second half of 2013 is expected to be flat to modestly better than the 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. Combined with continuing cost cutting measures, results improved and operating income margin reached 2.1 percent of revenues. Logistics' performance for the second half of 2013 is expected to significantly surpass the level achieved in 2012, driven by improved performance in warehousing operations, continued volume growth and expense control. In the fourth quarter of 2012, Logistics incurred
Other: In the second quarter, financial results improved in part due to a lower effective tax rate as compared to the second quarter of 2012. The effective tax rate was 38.9 percent versus 50.0 percent, respectively. In the second quarter of 2012, the Company incurred Separation costs that did not qualify for tax deduction, resulting in a higher than normal effective tax rate.
The Company expects capital expenditures for 2013 to be approximately
Results By Segment
Ocean Transportation — Three months ended
Three Months Ended | ||||||||||
(Dollars in millions) |
2013 |
2012 |
Change | |||||||
Revenue |
$ |
310.0 |
$ |
299.5 |
3.5 |
% | ||||
Operating income |
$ |
34.3 |
$ |
31.2 |
9.9 |
% | ||||
Operating income margin |
11.1 |
% |
10.4 |
% |
||||||
Volume (units) 1 |
||||||||||
|
35,700 |
33,900 |
5.3 |
% | ||||||
|
23,200 |
20,900 |
11.0 |
% | ||||||
|
15,400 |
15,200 |
1.3 |
% | ||||||
|
6,100 |
5,800 |
5.2 |
% | ||||||
|
2,400 |
1,300 |
84.6 |
% | ||||||
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 all of the trade lanes served by the Company in the second quarter:
Ocean transportation operating income increased
The Company's SSAT joint venture lost
Ocean Transportation — Six months ended
Six Months Ended | ||||||||||
(Dollars in millions) |
2013 |
2012 |
Change | |||||||
Revenue |
$ |
609.9 |
$ |
579.0 |
5.3 |
% | ||||
Operating income |
$ |
52.8 |
$ |
37.0 |
42.7 |
% | ||||
Operating income margin |
8.7 |
% |
6.4 |
% |
||||||
Volume (units) 1 |
||||||||||
|
70,000 |
66,400 |
5.4 |
% | ||||||
|
46,200 |
37,800 |
22.2 |
% | ||||||
|
29,600 |
28,900 |
2.4 |
% | ||||||
|
11,900 |
11,900 |
0.0 |
% | ||||||
|
4,800 |
2,800 |
71.4 |
% | ||||||
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 four of the trade lanes served by the Company in the first six months of the year:
Ocean transportation operating income increased
The Company's SSAT joint venture lost
Logistics — Three months ended
Three Months Ended | |||||||||||
(Dollars in millions) |
2013 |
2012 |
Change | ||||||||
Intermodal revenue |
$ |
65.4 |
$ |
59.2 |
10.5 |
% | |||||
Highway revenue |
41.2 |
35.5 |
16.1 |
% | |||||||
Total Revenue |
$ |
106.6 |
$ |
94.7 |
12.6 |
% | |||||
Operating income |
$ |
2.2 |
$ |
1.3 |
69.2 |
% | |||||
Operating income margin |
2.1 |
% |
1.4 |
% |
Logistics revenue increased
Logistics operating income increased
Logistics — Six months ended
Six Months Ended | |||||||||||
(Dollars in millions) |
2013 |
2012 |
Change | ||||||||
Intermodal revenue |
$ |
122.2 |
$ |
111.8 |
9.3 |
% | |||||
Highway revenue |
79.2 |
69.5 |
14.0 |
% | |||||||
Total Revenue |
$ |
201.4 |
$ |
181.3 |
11.1 |
% | |||||
Operating income |
$ |
2.4 |
$ |
1.6 |
50.0 |
% | |||||
Operating income margin |
1.2 |
% |
0.9 |
% |
Logistics revenue increased
Logistics operating income increased by
Cash Generation & Capital Allocation
Debt Levels
Total debt as of
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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
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Media inquiries: 510.628.4534 |
Consolidated Statements of Income (In millions, except per-share amounts) (Unaudited) | ||||||||||||
Three Months Ended |
Six Months Ended | |||||||||||
2013 |
2012 |
2013 |
2012 | |||||||||
Operating Revenue: |
||||||||||||
Ocean transportation |
$ |
310.0 |
$ |
299.5 |
$ |
609.9 |
$ |
579.0 | ||||
Logistics |
106.6 |
94.7 |
201.4 |
181.3 | ||||||||
Total operating revenue |
416.6 |
394.2 |
811.3 |
760.3 | ||||||||
Costs and Expenses: |
||||||||||||
Operating costs |
344.9 |
329.0 |
687.7 |
659.0 | ||||||||
Equity in loss (income) of terminal joint venture |
0.8 |
(1.6) |
0.6 |
(2.4) | ||||||||
Selling, general and administrative |
34.4 |
28.5 |
67.8 |
56.8 | ||||||||
Separation costs |
- |
5.8 |
- |
8.3 | ||||||||
Operating costs and expenses |
380.1 |
361.7 |
756.1 |
721.7 | ||||||||
Operating Income |
36.5 |
32.5 |
55.2 |
38.6 | ||||||||
Interest expense |
(3.6) |
(1.9) |
(7.3) |
(3.9) | ||||||||
Income from Continuing Operations Before Income Taxes |
32.9 |
30.6 |
47.9 |
34.7 | ||||||||
Income tax expense |
12.8 |
15.3 |
18.7 |
17.4 | ||||||||
Income From Continuing Operations |
20.1 |
15.3 |
29.2 |
17.3 | ||||||||
Loss from Discontinued Operations (net of |
- |
(7.5) |
- |
(6.1) | ||||||||
Net Income |
$ |
20.1 |
$ |
7.8 |
$ |
29.2 |
$ |
11.2 | ||||
Basic Earnings Per Share: |
||||||||||||
Continuing operations |
$ |
0.47 |
$ |
0.36 |
$ |
0.68 |
$ |
0.41 | ||||
Discontinued operations |
- |
(0.18) |
- |
(0.14) | ||||||||
Net income |
$ |
0.47 |
$ |
0.18 |
$ |
0.68 |
$ |
0.27 | ||||
Diluted Earnings Per Share: |
||||||||||||
Continuing operations |
$ |
0.47 |
$ |
0.36 |
$ |
0.68 |
$ |
0.41 | ||||
Discontinued operations |
- |
(0.18) |
- |
(0.15) | ||||||||
Net income |
$ |
0.47 |
$ |
0.18 |
$ |
0.68 |
$ |
0.26 | ||||
Weighted Average Number of Shares Outstanding: |
||||||||||||
Basic |
42.7 |
42.3 |
42.7 |
42.1 | ||||||||
Diluted |
43.0 |
42.8 |
43.0 |
42.5 | ||||||||
Cash Dividends Per Share |
$ |
0.15 |
$ |
0.315 |
$ |
0.30 |
$ |
0.63 | ||||
Condensed Consolidated Balance Sheets (In millions) (Unaudited) | |||||
|
| ||||
ASSETS |
|||||
Cash |
$ |
39.1 |
$ |
19.9 | |
Other current assets |
214.6 |
214.2 | |||
Total current assets |
253.7 |
234.1 | |||
Investment in terminal joint venture |
59.0 |
59.6 | |||
Property — net |
744.0 |
762.5 | |||
Other Assets |
111.8 |
118.1 | |||
Total |
$ |
1,168.5 |
$ |
1,174.3 | |
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||
Current portion of long-term debt |
$ |
12.4 |
$ |
16.4 | |
Other current liabilities |
193.7 |
177.0 | |||
Total current liabilities |
206.1 |
193.4 | |||
Long-term debt |
280.0 |
302.7 | |||
Deferred income taxes |
242.4 |
251.9 | |||
Employee benefit plans |
109.4 |
108.0 | |||
Other Liabilities |
38.2 |
38.4 | |||
Total long-term liabilities |
670.0 |
701.0 | |||
Total shareholders' equity |
292.4 |
279.9 | |||
Total |
$ |
1,168.5 |
$ |
1,174.3 |
Net Debt and EBITDA Reconciliation | |
As of | |
Total Debt: |
|
(Less) Total Cash |
(39.1) |
Net Debt |
|
Three Months Ended |
Last Twelve Months | ||||||||||
(in $ millions) |
2013 |
2012 |
Change |
||||||||
Net Income |
$ |
20.1 |
$ |
7.8 |
$ |
12.3 |
$ |
63.9 | |||
Subtract: Loss from discontinued operations |
- |
(7.5) |
7.5 |
- | |||||||
Add: Income tax expense |
12.8 |
15.3 |
(2.5) |
34.3 | |||||||
Add: Interest expense |
3.6 |
1.9 |
1.7 |
15.1 | |||||||
Add: Depreciation and amortization |
17.3 |
18.8 |
(1.5) |
69.4 | |||||||
EBITDA(1) |
$ |
53.8 |
$ |
51.3 |
$ |
2.5 |
$ |
182.7 | |||
(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. |
SOURCE
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