Rand Logistics Reports Fiscal Year 2013 Financial Results
2013 Sailing Season Off to a Solid Start
NEW YORK, June 12, 2013 (GLOBE NEWSWIRE) -- Rand Logistics, Inc. (Nasdaq:RLOG)
("Rand") today announced its financial results for the fiscal year ended March
31, 2013. This includes results for the Company's fiscal fourth quarter, in
which, due to the closing of the canal system and winter weather conditions on
the Great Lakes, the majority of the Company's fleet does not operate. In
addition, repair and maintenance costs are incurred in the fiscal fourth
quarter to prepare the fleet for the upcoming sailing season. As a result,
fiscal fourth quarter operating results are significantly lower than for the
first three quarters of our fiscal year.
Fiscal Year Ended March 31, 2013
Versus Fiscal Year Ended March 31, 2012 Financial Results
*Total revenue increased by 6.0% to $156.6 million from $147.8 million.
This increase was primarily attributable to higher freight revenue,
partially offset by reduced fuel surcharges and the effect of the slightly
weaker Canadian dollar.
*Marine freight revenue (excluding fuel and other surcharges, and outside
charter revenue) increased by 9.5% to $117.8 million from $107.6 million.
This increase was primarily attributable to contractual price increases
and 201 net additional sailing days primarily due to the two vessels
introduced in the 2012 sailing season.
*Marine freight revenue per Sailing Day increased by 3.8% to $30,035 from
$28,922.This increase was offset by certain delivery pattern
inefficiencies and an approximately 34% decrease in salt tonnage hauled
due to an abnormally dry 2012 winter in the Great Lakes region.
*Vessel operating expenses increased by 7.8% to $104.9 million from $97.3
million.This increase was attributable to three additional vessels
acquired in fiscal 2012.
*Operating income plus depreciation and amortization decreased by 9.3% to
$28.3 million from $31.2 million.
Laurence Levy, Executive Chairman of Rand, commented, "As we have previously
discussed, operating incidents on two of our vessels in addition to a nominal
contribution from the two vessels we acquired in the third quarter of fiscal
2012 adversely impacted fiscal 2013 results.In the aggregate, however, the
operating results of our remaining 12 vessels exceeded their budget and vessel
margin per day on all 16 vessels equaled $10,697, the second highest in the
Company's history.During fiscal 2013, management has implemented certain
action items which included completing the rebuild and expansion of the
engineering team in response to the growth of the fleet, implementing and
reinforcing a number of best practice operating protocols and designing an
incentive program tied to minimizing operating incidents.In light of the
disappointing performance, no bonuses were payable for fiscal 2013,
compensation for the senior executive team was reduced and base salary
increases were capped at no more than 2% in fiscal 2014."
Scott Bravener, President of Lower Lakes, stated, "We have begun to see marked
improvements in the operating performance of our fleet in the current sailing
season, which we believe is the result of many of the changes in operating
procedures that have been implemented over the past couple of years.For the
period ended May 31, 2013, we have not lost any sailing days due to incidents
compared to 49 lost days for the comparable period last season.Vessel
operating delays due to mechanical issues declined by 49%, or 16.3 days,
versus the comparable period last year.The decrease in vessel operating
delays, however, has been offset by higher than anticipated weather and
traffic delays versus the same period one year ago."
Laurence Levy concluded, "We believe that fiscal 2014 is off to a solid
start.Looking ahead, we are targeting key business opportunities that are
well suited to our fleet, allow for future growth, and will be accretive to
our profitability. Notwithstanding the challenges that we faced over the past
year, the fundamentals of our business remain intact, including our efficient
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 stockholder value."
Management will host a conference call to discuss these results at 8:30 a.m.
ET on Wednesday, June 12, 2013. Interested parties may participate in the
conference call by dialing 877-218-9317 (706-758-6006 for international
callers), Conference ID#78583843. 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 August 12, 2013. Dial
855-859-2056 (404-537-3406 for international callers), Conference ID#78583843
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.
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.
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
filed with the Securities and Exchange Commission on June 12, 2013.
RAND LOGISTICS, INC.
Consolidated Statements of Operations
(U.S. Dollars 000's except for Shares and Per Share data)
Year ended Year ended Year ended
March 31, 2013 March 31, 2012 March 31, 2011
Freight and related revenue $ 117,797 $ 107,618 $ 90,433
Fuel and other surcharges 37,404 38,886 20,471
Outside voyage charter revenue 1,437 1,321 7,074
TOTAL REVENUE 156,638 147,825 117,978
Outside voyage charter fees 1,447 1,312 7,052
Vessel operating expenses 104,896 97,274 77,177
Repairs and maintenance 8,350 7,179 5,456
General and administrative 13,477 11,024 9,892
Depreciation 15,373 11,581 7,684
Amortization of drydock costs 3,497 3,048 2,779
Amortization of intangibles 1,310 1,319 1,192
Loss (gain) on foreign exchange 186 (159) (18)
148,536 132,578 111,214
OPERATING INCOME 8,102 15,247 6,764
OTHER (INCOME) AND EXPENSES
Interest expense 10,171 9,327 5,737
Interest income (9) (6) (43)
Loss from a loss contingency on -- -- 1,280
Gain on interest rate swap (1,087) (771) (465)
Loss on extinguishment of debt 3,339 -- --
12,414 8,550 6,509
(LOSS) INCOME BEFORE INCOME (4,312) 6,697 255
(RECOVERY) PROVISION FOR INCOME
Current (134) 208 (14)
Deferred (359) (1,634) 154
(493) (1,426) 140
NET (LOSS) INCOME BEFORE (3,819) 8,123 115
PREFERRED STOCK DIVIDENDS
PREFERRED STOCK DIVIDENDS 3,173 2,806 2,360
NET (LOSS) INCOME APPLICABLE TO $(6,992) $5,317 $(2,245)
Net (loss) income per share basic $(0.39) $0.33 $(0.16)
Weighted average shares basic and 17,740,372 16,336,930 13,632,961
RAND LOGISTICS, INC.
Consolidated Balance Sheets
(U.S. Dollars 000's except for Shares and Per Share data)
March 31, March 31,
Cash and cash equivalents $ 848 $5,563
Accounts receivable 5,486 5,343
Income tax receivable 113 --
Loan to employee 250 --
Prepaid expenses and other current assets 7,842 6,510
Deferred income taxes 262 284
Total current assets 14,801 17,700
PROPERTY AND EQUIPMENT, NET 219,084 200,862
LOAN TO EMPLOYEE -- 250
OTHER ASSETS 1,050 1,528
DEFERRED INCOME TAXES 2,203 1,318
DEFERRED DRYDOCK COSTS, NET 10,895 9,879
INTANGIBLE ASSETS, NET 12,612 16,101
GOODWILL 10,193 10,193
Total assets $ 270,838 $ 257,831
Bank indebtedness $ 5,997 $--
Accounts payable 21,697 19,301
Accrued liabilities 21,316 18,175
Interest rate swap contracts -- 1,088
Income taxes payable -- 76
Deferred income taxes 173 418
Current portion of deferred payment liability 431 431
Current portion of long-term debt 3,630 9,686
Total current liabilities 53,244 49,175
LONG-TERM PORTION OF DEFERRED PAYMENT LIABILITY 1,631 2,063
LONG-TERM DEBT 139,760 123,915
OTHER LIABILITIES 253 242
DEFERRED INCOME TAXES 3,532 3,091
Total liabilities 198,420 178,486
COMMITMENTS AND CONTINGENCIES
Preferred stock, $.0001 par value, 14,900 14,900
Authorized 1,000,000 shares, Issued and outstanding 300,000
Common stock, $.0001 par value, 1 1
Authorized 50,000,000 shares, Issuable and outstanding
Additional paid-in capital 89,077 87,853
Accumulated deficit (32,341) (25,349)
Accumulated other comprehensive income 781 1,940
Total stockholders' equity 72,418 79,345
Total liabilities and stockholders' equity $270,838 $257,831
CONTACT: Rand Logistics, Inc.
Laurence S. Levy, Executive Chairman
Edward Levy, President
INVESTOR RELATIONS COUNSEL:
Alison Ziegler and Kevin McGrath
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