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|
|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|
|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)|
|OTHER (INCOME) AND EXPENSES|
|Loss from a loss contingency on guaranty||--||--||1,280|
|Gain on interest rate swap contracts||(1,087)||(771)||(465)|
|Loss on extinguishment of debt||3,339||--||--|
|(LOSS) INCOME BEFORE INCOME TAXES||(4,312)||6,697||255|
|(RECOVERY) PROVISION FOR INCOME TAXES|
|NET (LOSS) INCOME BEFORE PREFERRED STOCK DIVIDENDS||(3,819)||8,123||115|
|PREFERRED STOCK DIVIDENDS||3,173||2,806||2,360|
|NET (LOSS) INCOME APPLICABLE TO COMMON STOCKHOLDERS||$ (6,992)||$ 5,317||$ (2,245)|
|Net (loss) income per share basic and diluted||$ (0.39)||$ 0.33||$ (0.16)|
|Weighted average shares basic and diluted||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|
|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|
|DEFERRED INCOME TAXES||2,203||1,318|
|DEFERRED DRYDOCK COSTS, NET||10,895||9,879|
|INTANGIBLE ASSETS, NET||12,612||16,101|
|Total assets||$ 270,838||$ 257,831|
|Bank indebtedness||$ 5,997||$ --|
|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|
|DEFERRED INCOME TAXES||3,532||3,091|
|COMMITMENTS AND CONTINGENCIES|
|Preferred stock, $.0001 par value,||14,900||14,900|
|Authorized 1,000,000 shares, Issued and outstanding 300,000 shares|
|Common stock, $.0001 par value,||1||1|
|Authorized 50,000,000 shares, Issuable and outstanding 17,860,266 shares|
|Additional paid-in capital||89,077||87,853|
|Accumulated other comprehensive income||781||1,940|
|Total stockholders' equity||72,418||79,345|
|Total liabilities and stockholders' equity||$ 270,838||$ 257,831|
CONTACT: Rand Logistics, Inc. Laurence S. Levy, Executive Chairman Edward Levy, President (212) 644-3450 INVESTOR RELATIONS COUNSEL: Cameron Associates Alison Ziegler and Kevin McGrath (212) 554-5469 email@example.comSource:Rand Logistics, Inc.