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Rand Logistics Reports Third Quarter Fiscal Year 2014 Financial Results



Rand Logistics Reports Third Quarter Fiscal Year 2014 Financial Results

Operating Income Plus Depreciation and Amortization Increased by 15.3% to
$13.1 Million

NEW YORK, Feb. 5, 2014 (GLOBE NEWSWIRE) -- February 5, 2014 - Rand Logistics,
Inc. (Nasdaq:RLOG) ("Rand") today announced its financial results for its
fiscal year 2014 third quarter ended December 31, 2013.

Quarter Ended December 31, 2013

Versus Quarter Ended December 31, 2012 Financial Results

  * Marine freight revenue (excluding fuel and other surcharges) increased by
    6.8% to $39.9 million from $37.3 million. Excluding the impact of
    currency, marine freight revenue increased 10.4%. This increase was
    primarily attributable to a 3.4% increase in tonnage carried, 11
    additional Sailing Days and contractual price increases. In addition,
    certain customer contract renewals included a reset of the base fuel price
    to reflect prevailing market conditions for fuel, resulting in an increase
    in marine freight revenue and an equivalent reduction in fuel surcharges.
  * Marine freight revenue per Sailing Day increased by 5.9% to $29,101 from
    $27,480. This increase was somewhat offset by a weaker Canadian dollar and
    a shift in commodity mix.
  * Total revenue was up marginally to $49.9 million from $49.5 million.
    Reduced fuel surcharges, the effect of the weaker Canadian dollar and a
    mix shift to lower revenue generating commodities were offset by increased
    tonnage carried and increased prices.
  * Vessel operating expenses decreased by 5.6% to $32.7 million from $34.7
    million. This decrease was primarily attributable to a weaker Canadian
    dollar, reduced fuel prices and a reduction in vessel incident costs,
    partially offset by a greater number of Sailing Days. Due in part to
    improved cost controls, vessel operating expenses per Sailing Day declined
    by 6.4%, or $1,629 per day, to $23,901 from $25,530.
  * Operating income plus depreciation and amortization increased by 15.3% to
    $13.1 million from $11.3 million. The weaker Canadian dollar negatively
    impacted operating income plus depreciation and amortization by $497,000.

Nine Months Ended December 31, 2013

Versus Nine Months Ended December 31, 2012 Financial Results

  * Marine freight revenue (excluding fuel and other surcharges) increased by
    8.6% to $122.4 million from $112.7 million. Excluding the impact of
    currency, marine freight revenue increased 11.0%. Total Sailing Days were
    3,918 compared to 3,718 in the prior year.
  * Marine freight revenue per Sailing Day increased by 3.1% to $31,248
    compared to $30,315 per Sailing Day.
  * Total revenue declined by 0.6% to $148.8 million from $149.7 million.
    Reduced fuel surcharges, the effect of the weaker Canadian dollar and a
    mix shift to lower revenue generating commodities were partially offset by
    increased tonnage carried and increased prices. A 6.7% increase in tonnage
    carried and a 5.4% increase in Sailing Days helped to mitigate the impact
    of the mix shift.
  * Vessel operating expenses decreased by 2.8% to $97.0 million from $99.8
    million. This decrease was primarily attributable to a weaker Canadian
    dollar, reduced fuel prices and a reduction in vessel incident costs,
    partially offset by a greater number of Sailing Days. Due in part to
    improved cost controls, vessel operating expenses per Sailing Day declined
    by 7.8%, or $2,087 per day, to $24,766 from $26,853.
  * Operating income plus depreciation and amortization increased by 6.0% to
    $40.7 million from $38.3 million. The weaker Canadian dollar negatively
    impacted operating income plus depreciation and amortization by $1.0
    million.

Management Comments

Scott Bravener, President of Lower Lakes, commented, "We were pleased with our
execution of the controllable aspects of our business during the 2013 sailing
season. Investments that we made over the last two years are having a positive
impact on vessel performance. Year over year, we increased our tonnage carried
by 6.7%, reduced lost Sailing Days due to incidents by approximately 85%,
reduced lost time due to mechanical delays by 33%, and fully integrated into
our fleet network the new vessel that we introduced into service in October
2012."

Bravener continued, "While demand was adequate, we knew at the commencement of
the 2013 sailing season that our commodity mix would not be optimal from a
profitability standpoint. In addition, we experienced softness in the
aggregates markets, poor weather conditions both at the start and the end of
the sailing season, erratic customer order patterns and a slowdown in salt
shipments due to a seismic event experienced by one of our customers. While we
were not able to optimize our trade patterns or maximize the percentage of
time that our vessels operated in revenue-loaded condition, we achieved vessel
margin per day of $12,927 for the nine month period ended December 31, 2013
versus $13,031 for the comparable period last year. With recent new business
wins, we look forward to rebalancing our commodity mix to be more consistent
with historic levels and improving our profitability for the 2014 sailing
season."

Laurence Levy, Executive Chairman of Rand, added, "Over the last several
months we have substantially renewed existing material customer contracts up
for renewal and have successfully leveraged the benefits of our customer
network to capture market share. We have been awarded several new business
opportunities for the 2014 sailing season that will enable us to rebalance our
commodity mix and further solidify our position as the leader in the river
class market. The new business wins should allow us to better optimize our
trade patterns and improve scheduling efficiencies thereby increasing the
percentage of time our vessels are in revenue loaded condition. While we are
experiencing an improved demand climate, at the present time we are not
planning to reintroduce our 16^th vessel back into service for the 2014
sailing season. We are confident that by sailing 15 vessels we can accommodate
our customers' forecasted demand and further drive operating efficiencies. We
believe this should enhance vessel margin per day in the 2014 sailing season."

Conference Call

Management will host a conference call to discuss the results at 8:30 a.m. ET
on Thursday, February 6, 2014. Interested parties may participate in the
conference call by dialing 888-587-0615 (719-325-2448 for international
callers), and using Conference ID# 6916133. The conference call will be
webcast simultaneously on the Rand Logistics, Inc. website at
www.randlogisticsinc.com/presentations.html

A replay of the conference call will be available at
www.randlogisticsinc.com/presentations.html and will be archived for 12
months. A replay will also be available until June 6, 2014 by dialing
877-870-5176 (858-384-5517 for international callers), and using Conference
ID# 6916133.

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.

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
filed with the Securities and Exchange Commission on June 12, 2013.

                        --financial tables to follow--

 
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,
                           2013         2012         2013         2012
REVENUE                                                            
Freight and related         $ 39,868     $ 37,345     $ 122,428    $ 112,712
revenue
Fuel and other surcharges   8,871        11,994      25,253        35,576
Outside voyage charter      1,160        203         1,160         1,437
revenue
TOTAL REVENUE               49,899       49,542       148,841      149,725
                                                                   
EXPENSES                                                           
Outside voyage charter      1,060        202         1,060         1,447
fees
Vessel operating expenses   32,744       34,695      97,035        99,838
Repairs and maintenance     77           110         1,012         767
General and administrative  2,947        3,145       9,023         9,290
Depreciation                4,264        4,075       12,844        11,186
Amortization of drydock     822          878         2,489         2,630
costs
Amortization of             317          330         958           984
intangibles
(Gain) loss on foreign      (6)          48          54            34
exchange
                            42,225       43,483       124,475      126,176
OPERATING INCOME            7,674        6,059        24,366       23,549
                                                                   
OTHER (INCOME) AND                                                 
EXPENSES
Interest expense            2,215        2,705       6,949         7,645
Interest income             (3)          (1)          (6)          (7)
Gain on interest rate swap  --           (282)        --           (824)
contracts
Loss on extinguishment of   --           --           --           3,339
debt
                            2,212        2,422        6,943        10,153
                                                                   
INCOME BEFORE INCOME TAXES  5,462        3,637        17,423       13,396
PROVISION (RECOVERY) FOR                                           
INCOME TAXES
Current                     --           (49)         --           (49)
Deferred                    3,781        270          11,949       4,052
                            3,781        221          11,949       4,003
NET INCOME BEFORE           1,681        3,416        5,474        9,393
PREFERRED STOCK DIVIDENDS
PREFERRED STOCK DIVIDENDS   906          804          2,639        2,344
NET INCOME APPLICABLE TO    $ 775        $ 2,612      $ 2,835      $ 7,049
COMMON STOCKHOLDERS
                                                                   
Net income per share basic  $ 0.04       $ 0.15       $ 0.16       $ 0.40
and diluted
Weighted average shares     17,925,180   17,726,879   17,906,998   17,723,793
basic and diluted
 

RAND LOGISTICS, INC.
Consolidated Balance Sheets (Unaudited)
(U.S. Dollars 000's except for Shares and Per Share data)
 
                                              December 31, 2013 March 31, 2013
                                                                 
ASSETS                                                           
CURRENT                                                          
Cash and cash equivalents                      $ 2,550          $ 848
Accounts receivable, net                       17,848            5,486
Income tax receivable                          113               113
Loan to employee                               250               250
Prepaid expenses and other current assets      8,006             7,842
Deferred income taxes                          262               262
Total current assets                           29,029            14,801
                                                                 
PROPERTY AND EQUIPMENT, NET                    204,107           219,084
OTHER ASSETS                                   828               1,050
DEFERRED INCOME TAXES                          --                2,203
DEFERRED DRYDOCK COSTS, NET                    9,564             10,895
INTANGIBLE ASSETS, NET                         10,916            12,612
GOODWILL                                       10,193            10,193
                                                                 
Total assets                                  $ 264,637         $ 270,838
LIABILITIES                                                      
CURRENT                                                          
Bank indebtedness                              $ 4,380          $ 5,997
Accounts payable                               11,154            21,697
Accrued liabilities                            22,389            21,316
Deferred income taxes                          --                173
Current portion of deferred payment            431               431
liability 
Current portion of long-term debt              4,465             3,630
Total current liabilities                      42,819            53,244
LONG-TERM PORTION OF DEFERRED PAYMENT          1,287             1,631
LIABILITY 
LONG-TERM DEBT                                 133,942           139,760
OTHER LIABILITIES                              253               253
DEFERRED INCOME TAXES                          12,761            3,532
                                                                 
Total liabilities                              191,062           198,420
                                                                 
COMMITMENTS AND CONTINGENCIES                                    
STOCKHOLDERS' EQUITY                                             
Preferred stock, $.0001 par value, Authorized
1,000,000 shares, Issued and outstanding       14,900            14,900
300,000 shares 
Common stock, $.0001 par value, Authorized
50,000,000 shares, Issuable and outstanding    1                 1
17,929,864 shares 
Additional paid-in capital                     89,459            89,077
Accumulated deficit                            (29,506)          (32,341)
Accumulated other comprehensive (loss)         (1,279)           781
income 
                                                                 
Total stockholders' equity                     73,575            72,418
                                                                 
Total liabilities and stockholders' equity     $ 264,637         $ 270,838

CONTACT: Rand Logistics, Inc.
         Laurence S. Levy, Executive Chairman
         Edward Levy, President
         (212) 644-3450
        
         -OR-
        
         INVESTOR RELATIONS COUNSEL:
         Cameron Associates
         Alison Ziegler and Kevin McGrath
         (212) 554-5469
         alison@cameronassoc.com
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