Rand Logistics Reports Third Quarter Fiscal Year 2013 Financial Results

Rand Logistics Reports Third Quarter Fiscal Year 2013 Financial Results

Operating Income Plus Depreciation and Amortization Increased by 1.3% on a
Year-To-Date Basis

NEW YORK, Feb. 7, 2013 (GLOBE NEWSWIRE) -- Rand Logistics, Inc. (Nasdaq:RLOG)
("Rand") today announced financial and operational results for its fiscal year
2013 third quarter ended December 31, 2012.

Three Months Ended December 31, 2012 Financial Highlights
Versus Three Months Ended December 31, 2011

  *Marine freight revenue (excluding fuel and other surcharges, and outside
    charter revenue) increased by $1.4 million, or 4.0%, to $37.3 million from
    $35.9 million. This increase was primarily attributable to a stronger
    Canadian dollar and contractual price increases.
  *Total revenue increased by $0.2 million, or 0.4%, to $49.5 million from
    $49.3. This increase was primarily attributable to a stronger Canadian
    dollar and higher freight revenue, offset by reduced fuel surcharges.
  *Marine freight revenue per Sailing Day decreased by $2,203, or 7.4%, to
    $27,480 per Sailing Day compared to $29,683 per Sailing Day. This decrease
    was attributable to unfavorable weather conditions, including Hurricane
    Sandy (resulting in a cumulative loss of 30 Sailing Days), low water
    levels, uneven customer demand, and a reduction in salt tonnage due to an
    abnormally dry winter in the Great Lakes region. These events impacted the
    efficiency of our trade patterns.
  *Vessel operating expenses increased by $2.6 million, or 8.2%, to $34.7
    million from $32.1 million. This increase was primarily due to increased
    Sailing Days attributable to two additional vessels sailed in the quarter
    but not sailed in the comparable quarter last year and to operating
    inefficiencies associated with the start up of a vessel introduced into
    service during the quarter. These cost increases were partially offset by
    lower fuel prices.
  *Operating income decreased by $3.9 million to $6.1 million from $10.0
    million.
  *Operating income plus depreciation and amortization decreased by $2.7
    million, or 19.2%, to $11.3 million from $14.0 million.

Nine Months Ended December 31, 2012 Financial Highlights
Versus Nine Months Ended December 31, 2011

  *Marine freight revenue (excluding fuel and other surcharges, and outside
    charter revenue) increased by $10.9 million, or 10.7%, to $112.7 million
    from $101.8 million. This increase in revenue was attributable to
    contractual price increases and 253 net additional Sailing Days. The net
    additional Sailing Days were comprised of the addition of 267 Sailing Days
    from the two vessels acquired during the nine month period ended December
    31, 2011, offset by a loss of 14 Sailing Days on the balance of the fleet.
  *Marine freight revenue per Sailing Day increased by $943, or 3.2%, to
    $30,315 per Sailing Day compared to $29,372 per Sailing Day. This increase
    was somewhat offset by unfavorable weather conditions, including Hurricane
    Sandy and low water levels, a weaker Canadian dollar, an approximately 29%
    year-to-date decrease in salt tonnage hauled versus the same year-ago
    period due to an abnormally dry winter in the Great Lakes region, and
    inconsistent customer demand which impacted the efficiency of our trade
    patterns.
  *Operating income decreased by $2.4 million, or 9.3%, to $23.5 million
    compared to $25.9 million.
  *Operating income plus depreciation and amortization increased by $0.5
    million, or 1.3%, or to $38.3 million from $37.8 million.

Management Comments

Scott Bravener, President of Lower Lakes, stated, "As we have previously
described, we experienced significant incidents on two of our vessels during
the 2012 sailing season – one in the first fiscal quarter and one at the end
of the second fiscal quarter. Combined, these incidents resulted in 123 lost
Sailing Days. In total, these two incidents resulted in a decline in our
reported results for the nine months ended December 31, 2012 of approximately
$4.0 million as compared to the nine month period ended December 31, 2011."

"Overall, we would characterize demand in the 2012 sailing season as adequate
but not optimal. While we operated all of our vessels in the 2012 sailing
season, we were not able to optimize our trade patterns for a number of
reasons, including weather conditions, a reduction in salt and grain tonnage,
erratic order patterns by our customers, softness in the stone markets,
particularly in the July through December period, and unexpected events
experienced by our customers including a work stoppage and an extended plant
maintenance shutdown. As a result of these factors, we were not able to
maximize the percentage of time that our vessels operated in revenue-loaded
condition."

"Additionally, one of the two vessels that we acquired in September 2011 was
delayed in being introduced into service until October 23, 2012 instead of our
projected introduction date of August 1, 2012. This sailing delay was caused
by the modifications necessary for the vessel to meet Great Lakes standards,
taking longer than anticipated. In addition, the second acquired vessel
encountered a series of start-up issues, and lost approximately 77 Sailing
Days during the season due to weakness in the grain market and an early layup
for further modifications. We remain enthusiastic about the prospects for both
of these vessels and expect them both to be fully operational for the 2013
sailing season. Aside from the aforementioned four vessels that encountered
operating incidents and start up issues, the combined results from our
remaining 12 vessels exceeded our 2012 sailing season earnings guidance."

Laurence S. Levy, Chairman and CEO of Rand, commented, "We are continuing to
evaluate our customers' capacity needs for the 2013 sailing season. We are
targeting key business opportunities that are well suited to our fleet, allow
for future growth, and will be accretive to our profitability. At the present
time, the demand environment in our markets looks very similar to the 2012
sailing season. We do not anticipate integrating any new vessels into our
fleet or managing any major vessel modification projects during the 2013
sailing season, and therefore our sole focus will be to execute our business
plan. Notwithstanding the challenges that we faced over the last nine months,
the fundamentals of our business remain intact, including our low cost
operating structure, our non-duplicatable asset portfolio, and our extensive
customer network. We believe that these attributes will allow us to continue
to create long term shareholder value."

Rand Logistics, Inc.
Summary Statements of Operations (Unaudited)
(U.S. Dollars 000's except for Shares and Per Share data)
                                                              
                                                              
                       Three months ended December Nine months ended December
                        31,                         31,
                       2012          2011          2012          2011
Revenue                                                        
Freight and related     $37,345     $35,917     $112,712    $101,775
revenue
Fuel and other          11,994       12,800       35,576       36,972
surcharges
Outside voyage charter  203          619          1,437        1,321
revenue
                       49,542        49,336        149,725       140,068
Expenses                                                       
Outside voyage charter  202           615           1,447         1,312
fees
Vessel operating        34,695        32,076        99,838        91,907
expenses
Repairs and maintenance 110           36            767           1,068
General and             3,145         2,558         9,290         7,987
administrative
Depreciation and
amortization of drydock 5,283         4,017         14,800        11,890
costs and intangibles
Loss (gain) on foreign  48            16            34            (51)
exchange
                       43,483        39,318        126,176       114,113
Operating Income        $6,059      $10,018     $23,549     $25,955
                                                              
Net income applicable   $2,612      $6,643      $7,049      $15,096
to common stockholders
Net income per share –  $0.15       $0.38       $0.40       $0.95
basic
Net income per share –  $0.15       $0.37       $0.40       $0.93
diluted

Management will host a conference call to discuss the results at 8:30 a.m. ET
on Thursday, February 7, 2013. Interested parties may participate in the
conference call by dialing 877-218-9317 (706-758-6006 for international
callers), Conference ID#88681802. Please dial in 10 minutes before the call is
scheduled to begin.

A telephonic replay of the conference call may be accessed approximately two
hours after the completion of the call through April 7, 2013. Dial
855-859-2056 (404-537-3406 for international callers), Conference ID#88681802
to access the phone replay.

The conference call will be webcast simultaneously on the Rand Logistics, Inc.
website at www.randlogisticsinc.com/presentations.html.The webcast replay
will be archived for 12 months.

Forward-Looking Statements

This press release contains forward-looking statements. For all
forward-looking statements, we claim the protection of the Safe Harbor for
Forward-Looking Statements contained in the Private Securities Litigation
Reform Act of 1995.Forward-looking statements are inherently subject to
risks and uncertainties, many of which cannot be predicted with accuracy or
are otherwise beyond our control and some of which might not even be
anticipated.Future events and actual results, affecting our strategic plan
as well as our financial position, results of operations and cash flows, could
differ materially from those described in or contemplated by the
forward-looking statements.Important factors that contribute to such risks
include, but are not limited to, the effect of the economic downturn in our
markets; the weather conditions on the Great Lakes; and our ability to
maintain and replace our vessels as they age.

For a more detailed description of these uncertainties and other factors,
please see the "Risk Factors" section in Rand's Annual Report on Form 10-K to
be filed with the Securities and Exchange Commission on June 8, 2012.

About Rand Logistics

Rand Logistics, Inc. is a leading provider of bulk freight shipping services
throughout the Great Lakes region. Through its subsidiaries, the Company
operates a fleet of four conventional bulk carriers and twelve self-unloading
bulk carriers including four tug/barge units. The Company is the only carrier
able to offer significant domestic port-to-port services in both Canada and
the U.S. on the Great Lakes. The Company's vessels operate under the U.S.
Jones Act – which reserves domestic waterborne commerce to vessels that are
U.S. owned, built and crewed, – and the Canada Coasting Trade Act – which
reserves domestic waterborne commerce to Canadian registered and crewed
vessels that operate between Canadian ports.


RAND LOGISTICS, INC.
Consolidated Statements of Operations (Unaudited)
(U.S. Dollars 000's except for Shares and Per Share data)
                                                              
                                                              
                          Three months Three months Nine months  Nine months
                           ended        ended        ended        ended
                          December 31, December 31, December 31, December 31,
                           2012         2011         2012         2011
REVENUE                                                       
Freight and related        $37,345    $35,917    $112,712   $101,775
revenue
Fuel and other surcharges  11,994      12,800      35,576      36,972
Outside voyage charter     203         619         1,437       1,321
revenue
TOTAL REVENUE              49,542      49,336      149,725     140,068
                                                              
EXPENSES                                                       
Outside voyage charter     202         615         1,447       1,312
fees
Vessel operating expenses  34,695      32,076      99,838      91,907
Repairs and maintenance    110         36          767         1,068
General and                3,145       2,558       9,290       7,987
administrative
Depreciation               4,075       2,903       11,186      8,636
Amortization of drydock    878         792         2,630       2,263
costs
Amortization of            330         322         984         991
intangibles
Loss (gain) on foreign     48          16          34          (51)
exchange
                          43,483      39,318      126,176     114,113
OPERATING INCOME           6,059       10,018      23,549      25,955
                                                              
OTHER (INCOME) AND                                             
EXPENSES
Interest expense          2,705       2,346       7,645       6,786
Interest income            (1)         (2)         (7)         (4)
Gain on interest rate swap (282)       (397)       (824)       (488)
contracts
Loss on extinguishment of  --         --         3,339       --
debt
                          2,422       1,947       10,153      6,294
                                                              
INCOME BEFORE INCOME       3,637       8,071       13,396      19,661
TAXES
PROVISION (RECOVERY) FOR                                       
INCOME TAXES
Current                    (49)        95          (49)        417
Deferred                   270         618         4,052       2,079
                          221         713         4,003       2,496
NET INCOME BEFORE          3,416       7,358       9,393       17,165
PREFERRED STOCK DIVIDENDS
PREFERRED STOCK DIVIDENDS  804         715         2,344       2,069
NET INCOME APPLICABLE TO   $2,612     $6,643     $7,049     $15,096
COMMON STOCKHOLDERS
                                                              
Net income per share basic $0.15      $0.38      $0.40      $0.95
Net income per share       $0.15      $0.37      $0.40      $0.93
diluted
Weighted average shares    17,726,879  17,671,114  17,723,793  15,894,463
basic
Weighted average shares    17,726,879  20,141,349  17,723,793  18,399,571
diluted



RAND LOGISTICS, INC.
Consolidated Balance Sheets (Unaudited)
(U.S. Dollars 000's except for Shares and Per Share data)
                                                                  
                                                                  
                                                      December 31, March 31,
                                                      2012         2012
ASSETS                                                             
CURRENT                                                            
Cash and cash equivalents                              $4,737     $5,563
Accounts receivable                                   23,850      5,343
Income tax receivable                                 33          --
Prepaid expenses and other current assets              6,782       6,510
Deferred income taxes                                 265         284
Total current assets                                   35,667      17,700
                                                                  
PROPERTY AND EQUIPMENT, NET                           216,320     200,862
LOAN TO EMPLOYEE                                       250         250
OTHER ASSETS                                           1,003       1,528
DEFERRED INCOME TAXES                                 448         1,318
DEFERRED DRYDOCK COSTS, NET                           9,675       9,879
INTANGIBLE ASSETS, NET                                13,248      16,101
GOODWILL                                              10,193      10,193
                                                                  
Total assets                                          $286,804   $257,831
LIABILITIES                                                        
CURRENT                                                            
Bank indebtedness                                     $10,021    $ --
Accounts payable                                       15,459      19,301
Accrued liabilities                                   19,893      18,175
Interest rate swap contracts                          264         1,088
Income taxes payable                                   3           76
Deferred income taxes                                 354         418
Current portion of deferred payment liability          431         431
Current portion of long-term debt                     3,658       9,686
Total current liabilities                              50,083      49,175
LONG-TERM PORTION OF DEFERRED PAYMENT LIABILITY        1,742       2,063
LONG-TERM DEBT                                        141,739     123,915
OTHER LIABILITIES                                      242         242
DEFERRED INCOME TAXES                                 6,337       3,091
                                                                  
Total liabilities                                      200,143     178,486
                                                                  
COMMITMENTS AND CONTINGENCIES                                     
STOCKHOLDERS' EQUITY                                               
Preferred stock, $.0001 par value,                    14,900      14,900
Authorized 1,000,000 shares, Issued and outstanding                
300,000 shares
Common stock, $.0001 par value,                       1           1
Authorized 50,000,000 shares, Issuable and outstanding             
17,729,826 shares
Additional paid-in capital                             88,306      87,853
Accumulated deficit                                    (18,300)    (25,349)
Accumulated other comprehensive income                1,754       1,940
                                                                  
Total stockholders' equity                             86,661      79,345
                                                                  
Total liabilities and stockholders' equity             $286,804   $257,831

CONTACT: Rand Logistics, Inc.
         Laurence S. Levy, Chairman & CEO
         Edward Levy, President
         (212) 644-3450
        
         -OR-
        
         INVESTOR RELATIONS COUNSEL:
         Lesley Snyder
         (212) 863-9413
         LSnyder@randlogisticsinc.com