Horizon Lines, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 22, 2013; Provides Earnings Guidance for the Full Year of 2014
Mar 21 14
Horizon Lines, Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 22, 2013. Fourth-quarter operating revenue declined 1.7% to $255.4 million from $259.8 million a year ago. The GAAP operating income for the fourth quarter totaled $1.8 million, compared with a loss of $3.9 million a year ago. The 2013 GAAP operating income reflects charges totaling $2.7 million associated with legal settlements, an equipment impairment charge and certain legal expenses. EBITDA totaled $14.7 million for the 2013 fourth quarter, compared with $8.2 million for the same period a year ago. Adjusted EBITDA for the fourth quarter of 2013 was $17.3 million, versus $13.0 million for 2012. EBITDA and adjusted EBITDA for the 2013 and 2012 fourth quarters were impacted by the same factors affecting operating income. On a GAAP basis, the fourth-quarter net loss totaled $14.0 million, or $0.36 per share on a weighted average of 39.4 million fully diluted shares outstanding. This compares with year-ago net loss of $17.9 million, or $0.52 per fully diluted share, based on a weighted average of 34.3 million fully diluted shares outstanding. On an adjusted basis, the 2013 fourth-quarter net loss totaled $11.5 million, or $0.29 per share, compared with a net loss of $12.8 million, or $0.38 per share, for the 2012 fourth quarter. Adjusted net income for the 2013 and 2012 fourth quarters reflects the same items that impacted adjusted EBITDA. Operating income was $1.778 million against loss of $3.913 million a year ago. Loss from continuing operations before income taxes was $15.353 million against $17.581 million a year ago. Net loss from continuing operations was $14.031 million against $17.904 million a year ago.
For the full fiscal year ended December 22, 2013, operating revenue decreased 3.8% to $1.03 billion from $1.07 billion for fiscal 2012. EBITDA totaled $83.2 million compared with $39.7 million a year ago. Adjusted EBITDA for 2013 totaled $95.2 million, versus $66.0 million a year ago. The $29.2 million improvement was principally due to a reduction in vessel lease expense, lower dry-dock transit and crew-related expenses, higher non-transportation revenue, lower overhead and cost efficiencies resulting from its 2012 and 2013 initiatives, partially offset by lower fuel recovery and lower rates, net of fuel. The net loss for 2013 totaled $33.4 million, or $0.91 per share, based on a weighted average of 36.5 million shares outstanding. This compares with a 2012 net loss of $74.4 million, or $3.26 per share, based on a weighted average of 22.8 million shares outstanding. The adjusted net loss for 2013 totaled $20.9 million, or $0.57 per share, compared with an adjusted net loss of $46.1 million, or $2.02 per share per share, for 2012. Operating income was $31.377 million against $4.252 million a year ago. Loss from continuing operations before income taxes was $35.279 million against $75.885 million a year ago. Net loss from continuing operations was $33.354 million against $74.403 million a year ago. Net cash provided by operating activities from continuing operations was $31.843 million against $8.323 million a year ago. Purchases of property and equipment were $113.846 million against $14.823 million a year ago.
The company expects 2014 revenue container loads to be above 2013 levels due to anticipated modest volume growth in all three markets serve. This projected volume growth takes into consideration the estimated impacts of a new competitor that entered the Puerto Rico Gulf service during 2013 for a full year in 2014, as well as a second vessel being added by a competitor in its Hawaii service during 2014, partially offset by the full-year impact of adding a bi-weekly Jacksonville sailing to its southbound service between Houston, Texas and San Juan, Puerto Rico. The company expects 2014 financial results to approximate 2013 results, with 2014 adjusted EBITDA projected between $82.0 million and $97.0 million, compared with $95.2 million in fiscal 2013. Net loss from continuing operations was $40.700 million- $25.700 million, interest expense, net was $71.050 million, depreciation and amortization was $49.700 million.
Sea Star Line LLC and Horizon Lines LLC to Pay $3.4 Million to Settle Claims of Price Fixing Government Cargo Transportation Contracts
Mar 7 14
Sea Star Line LLC and Horizon Lines LLC have agreed to resolve allegations that they violated the False Claims Act by fixing the price of government cargo transportation contracts between the continental United States and Puerto Rico. Under the settlement agreements, Sea Star Line has agreed to pay $1.9 million, and Horizon Lines has agreed to pay $1.5 million. The government alleged that former executives of the defendant ocean shippers used personal email accounts to communicate confidential bidding information, thereby enabling each of the shippers to know the transportation rates that its competitor intended to submit to federal agencies for specific routes. This information allowed the shippers to allocate specific routes between themselves at predetermined rates. Among the contracts affected were U.S. Postal Service contracts to transport mail and Department of Agriculture contracts to ship food. Both Sea Star Line and Horizon Lines previously pleaded guilty, in related criminal proceedings, to anticompetitive conduct in violation of the Sherman Act.
Horizon Lines Announces Senior Management Appointments
Nov 18 13
Horizon Lines, Inc. announced that Geoffrey Thurston is being named Senior Vice President and General Manager for the company's Puerto Rico trade. Mr. Thurston will succeed Richard Rodriguez, who will become the Vice President Terminal Services. The new appointments will take effect December 2, 2013. He most recently served as Vice President Commercial & Trades for Tropical Shipping, LTD, with commercial, operating and P&L responsibilities. Richard Rodriguez has accepted the newly created position of Vice President Terminal Services to oversee and optimize the value of the carrier's terminals throughout the company. Most recently, Richard served as Vice President and General Manager for Puerto Rico.