Highlights:
- Adjusted EBITDA increased 3.5% to $33.7 million, up 6.1% on a constant currency basis
- Reduction in net debt of $4.9 million year-over-year
- 2015 sailing season off to a solid start
NEW YORK, June 10, 2015 (GLOBE NEWSWIRE) -- Rand Logistics, Inc. (Nasdaq:RLOG) ("Rand") today announced its financial results for the fiscal year ended March 31, 2015. Despite the impact of weather related delays at the beginning and end of the 2014 sailing season, Adjusted EBITDA for fiscal 2015 increased year-over-year. Improvements in controllable operational measurements as well as our commodity mix enabled the Company to partially offset the delays that were experienced as a result of the weather.
Fiscal Year Ended March 31, 2015 Versus
Fiscal Year Ended March 31, 2014 Financial Results
Please note that full year results include the Company's fiscal fourth quarter during which the Company's fleet operates on a limited basis due to the normal closing schedule of the locks system and winter weather conditions on the Great Lakes. 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 the results for the first three quarters of our fiscal year.
- Freight and other related revenue (which excludes fuel and other surcharges) increased by 0.8% to $129.1 million from $128.1 million. On a constant currency basis, freight and other related revenue increased by 4.3% or $5.5 million. This increase was primarily attributable to an increase in tonnage carried, price increases, improvements in commodity mix and water levels and a higher percentage of time in revenue loaded condition, offset by a weaker Canadian dollar.
- Total Sailing Days were 4,106 compared to 4,166 and a theoretical maximum of 4,125. The year-over-year decline was primarily due to adverse weather conditions on the Great Lakes in April 2014 that caused the loss of 162 Sailing Days. Delay Days which comprise lost time due to inclement weather, dock delays, traffic congestion and mechanical issues declined a further 6.2% to 10.6% of Sailing Days compared to 11.3% of Sailing Days.
- Freight and related revenue per Sailing Day increased by 2.2% to $31,443 compared to $30,760. On a constant currency basis, freight and related revenue per Sailing Day increased 5.8% or $1,784.
- Total revenue decreased by 1.8% to $153.0 million from $155.8 million.
- Vessel operating expenses decreased by 4.8% to $97.8 million compared to $102.8 million. This decrease was primarily due to improvements in certain of our operating metrics, fewer Sailing Days, reduced fuel prices and the weaker Canadian dollar, partially offset by increased costs due to inefficient operations at the start of the 2014 sailing season. Vessel operating expenses per Sailing Day declined by 3.5%, or $853, to $23,824 from $24,677.
- Adjusted EBITDA increased by 3.5%, or $1.1 million, to $33.7 million from $32.6 million. On a constant currency basis, this measure increased by 6.1% or $2.0 million. A reconciliation of operating income to Adjusted EBITDA is attached to this release.
- Net loss per share on a fully diluted basis was $0.59 compared to $0.44 in the year ago period.
Management Comments
"We were generally pleased with our operating performance in fiscal 2015, which was achieved despite severe weather conditions in both April 2014 and January 2015 and a 7.3% decline in the average value of the Canadian dollar, which negatively impacted Adjusted EBITDA by approximately $0.9 million," commented Ed Levy, President and CEO of Rand. "We were able to offset these factors that were beyond our control by improving both the operating reliability of our fleet and the mix of commodities that we carried. We believe that we have the opportunity to realize further improvements in certain of our key operating metrics in the year ahead."
"Because of weather and ice conditions on the Great Lakes, we did not operate any of our vessels in March 2015 and, while conditions at the start of the 2015 sailing season were not optimal, they were much improved in comparison to 2014. For the month of April 2015 we sailed for 318 days compared to 223 days in April 2014. We are also pleased with our preliminary May revenues, having sailed for 459 Sailing Days in May, equal to 98.7% of our theoretical maximum. The current demand environment is generally good with organic growth across certain of the commodities that we carry, supplementing new business that we have been able to capture over the last several years. This is creating efficient trade patterns and is maximizing the percentage of time that our vessels are in revenue generating condition."
Ed Levy concluded, "Looking ahead, our recently completed refinancing will reduce our interest expense by approximately $1.5 million in our current fiscal year and provide us with cash flow flexibility to further invest in our business. We are anticipating the introduction of our newest vessel in the fourth calendar quarter of 2015, which will allow for future organic growth and will be accretive to our profitability and earnings per share. We have also recently added to our management team, with a new Chief Financial Officer and new Chief Human Resources Officer over the last three months. We are confident that both will be instrumental in driving improved return on invested capital, which is management's primary financial objective."
Conference Call
Management will host a conference call to discuss these results at 8:30 a.m. ET on Thursday, June 11, 2015. Interested parties may participate in the conference call by dialing 888-572-7025 (719-325-2420 for international callers), and using Conference ID# 8523828. 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 August 11, 2015 by dialing 877-870-5176 (858-384-5517 for international callers), and using Conference ID# 8523828.
Non-GAAP Financial Measures/Financial Tables
This press release contains certain non-GAAP financial measures. Reconciliations of these and other non-GAAP measures to the comparable GAAP measures are included in the attached financial tables.
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 eleven self-unloading bulk carriers including three 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 an economic downturn in certain of 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 11, 2015.
| 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, 2015 | March 31, 2014 | March 31, 2013 | |
| REVENUE | |||
| Freight and related revenue | $ 129,107 | $ 128,145 | $ 117,797 |
| Fuel and other surcharges | 22,110 | 26,475 | 37,404 |
| Outside voyage charter revenue | 1,743 | 1,184 | 1,437 |
| TOTAL REVENUE | 152,960 | 155,804 | 156,638 |
| EXPENSES | |||
| Outside voyage charter fees | 1,711 | 1,086 | 1,447 |
| Vessel operating expenses | 97,821 | 102,804 | 104,896 |
| Repairs and maintenance | 6,463 | 7,191 | 8,350 |
| General and administrative | 13,275 | 12,159 | 13,477 |
| Depreciation | 18,292 | 16,994 | 15,373 |
| Amortization of drydock costs | 3,343 | 3,290 | 3,497 |
| Amortization of intangibles | 1,198 | 1,263 | 1,310 |
| Loss on foreign exchange | 873 | 68 | 186 |
| Loss on termination of vessel lease | 2,660 | — | — |
| 145,636 | 144,855 | 148,536 | |
| OPERATING INCOME | 7,324 | 10,949 | 8,102 |
| OTHER (INCOME) AND EXPENSES | |||
| Interest expense | 14,007 | 9,373 | 10,171 |
| Interest income | (18) | (7) | (9) |
| Gain on interest rate swap contracts | — | — | (1,087) |
| Loss on extinguishment of debt | 2,331 | 1,267 | 3,339 |
| 16,320 | 10,633 | 12,414 | |
| (LOSS) INCOME BEFORE INCOME TAXES | (8,996) | 316 | (4,312) |
| PROVISION (BENEFIT) FOR INCOME TAXES | |||
| Current | 7 | 117 | (134) |
| Deferred | 417 | 4,706 | (359) |
| 424 | 4,823 | (493) | |
| NET LOSS BEFORE PREFERRED STOCK DIVIDENDS | (9,420) | (4,507) | (3,819) |
| PREFERRED STOCK DIVIDENDS | 1,168 | 3,429 | 3,173 |
| NET LOSS APPLICABLE TO COMMON STOCKHOLDERS | $ (10,588) | $ (7,936) | $ (6,992) |
| Net loss per share basic and diluted | $ (0.59) | $ (0.44) | $ (0.39) |
| Weighted average shares basic and diluted | 17,847,939 | 17,912,647 | 17,740,372 |
| RAND LOGISTICS, INC. | ||
| Consolidated Balance Sheets | ||
| (U.S. Dollars 000's except for Shares and Per Share data) | ||
| March 31, 2015 | March 31, 2014 | |
| ASSETS | ||
| CURRENT | ||
| Cash and cash equivalents | $ 3,298 | $ 2,602 |
| Accounts receivable, net | 2,764 | 2,629 |
| Income taxes receivable | 91 | 96 |
| Loan to employee | — | 250 |
| Prepaid expenses and other current assets | 5,957 | 7,344 |
| Deferred income taxes | 347 | 121 |
| Total current assets | 12,457 | 13,042 |
| PROPERTY AND EQUIPMENT, NET | 206,276 | 215,487 |
| OTHER ASSETS | 569 | 730 |
| DEFERRED DRYDOCK COSTS, NET | 7,590 | 9,321 |
| INTANGIBLE ASSETS, NET | 13,205 | 16,233 |
| GOODWILL | 10,193 | 10,193 |
| Total assets | $ 250,290 | $ 265,006 |
| LIABILITIES | ||
| CURRENT | ||
| Accounts payable | $ 15,350 | $ 11,792 |
| Accrued liabilities | 7,628 | 7,956 |
| Other current liability | 166 | — |
| Income taxes payable | — | 100 |
| Deferred income taxes | — | 35 |
| Current portion of deferred payment liability | 536 | 499 |
| Current portion of long-term debt | — | 787 |
| Total current liabilities | 23,680 | 21,169 |
| LONG-TERM PORTION OF DEFERRED PAYMENT LIABILITY | 564 | 1,100 |
| LONG-TERM DEBT, NET OF CURRENT PORTION | 101,213 | 104,103 |
| SUBORDINATED DEBT | 72,500 | 72,500 |
| OTHER LIABILITIES | 479 | 253 |
| DEFERRED INCOME TAXES | 5,607 | 5,134 |
| Total liabilities | 204,043 | 204,259 |
| COMMITMENTS AND CONTINGENCIES | ||
| STOCKHOLDERS' EQUITY | ||
| Preferred stock, $.0001 par value, | ||
| Authorized 1,000,000 shares, Issued and outstanding 300,000 shares | 14,900 | 14,900 |
| Common stock, $.0001 par value, | ||
| Authorized 50,000,000 shares, Issuable and outstanding 18,035,427 shares at March 31, 2015 and 17,933,859 shares at March 31, 2014 | 1 | 1 |
| Additional paid-in capital | 90,130 | 89,486 |
| Accumulated deficit | (50,972) | (40,277) |
| Accumulated other comprehensive income | (7,812) | (3,363) |
| Total stockholders' equity | 46,247 | 60,747 |
| Total liabilities and stockholders' equity | $ 250,290 | $ 265,006 |
| RAND LOGISTICS, INC. | |||||||
| Non-GAPP Financial Measures / Financial Tables | |||||||
| (U.S. Dollars 000's except per day statistics) | |||||||
| FY2015 - Mar 2015 YTD | |||||||
| FX Impact | |||||||
| FY2015 | FY2014 | (Unfavorable)/ | Constant Currency | ||||
| Actual | Actual | Increase/(Decrease) | Favorable | Increase/(Decrease) | |||
| Change $ | Change % | Change $ | Change $ | Change % | |||
| Average Fx Rate | 0.880 | 0.950 | |||||
| Sailing Days | 4,106 | 4,166 | (60) | -1.4% | |||
| Financial Highlights (US$ '000s) | |||||||
| Freight and Related Revenue | $129,107 | $128,145 | $962 | 0.8% | ($4,518) | $5,480 | 4.3% |
| Fuel and Other Surcharges | $22,110 | $26,475 | ($4,365) | -16.5% | ($1,020) | ($3,345) | -12.6% |
| Total Revenue | $152,960 | $155,804 | ($2,844) | -1.8% | ($5,710) | $2,866 | 1.8% |
| Vessel Operating Expenses | $97,821 | $102,804 | ($4,983) | -4.8% | ($3,707) | ($1,276) | -1.2% |
| Vessel Margin | $46,933 | $44,625 | $2,308 | 5.2% | ($1,404) | $3,712 | 8.3% |
| General & Admin Expense | $13,275 | $12,159 | $1,116 | 9.2% | ($556) | $1,672 | 13.8% |
| Loss on foreign exchange | $873 | $68 | $805 | NM | ($42) | $847 | NM |
| Adjusted EBITDA | $33,690 | $32,564 | $1,126 | 3.5% | ($848) | $1,974 | 6.1% |
| Per Day Statistics | |||||||
| Marine Freight Revenue/Day | $31,443 | $30,760 | $683 | 2.2% | ($1,101) | $1,784 | 5.8% |
| Total Revenue/Day | $37,253 | $37,399 | ($146) | -0.4% | ($1,391) | $1,245 | 3.3% |
| Vessel Operating Expenses/Day | $23,824 | $24,677 | ($853) | -3.5% | ($902) | $49 | 0.2% |
| Vessel Margin/Day | $11,430 | $10,712 | $718 | 6.7% | ($342) | $1,060 | 9.9% |
| Non-GAAP Reconciliation (US$ '000s) | |||||||
| Vessel margin | $46,933 | $44,625 | |||||
| Outside Voyage Charter (net) | $32 | $98 | |||||
| General & Admin Expense | $13,275 | $12,159 | |||||
| Adjusted EBITDA | $33,690 | $32,564 | |||||
| Loss on foreign exchange | $873 | $68 | |||||
| Loss on termination of vessel lease | $2,660 | $0 | |||||
| Depreciation, Amortization of Drydock & Intangibles | $22,833 | $21,547 | |||||
| Operating Income | $7,324 | $10,949 | |||||
| Note: | |||||||
| 1. The constant currency information presented is calculated by translating current period results using prior period foreign currency exchange rates. | |||||||
| 2. Our results for FY2015 reflect the effects of the harshest winter experienced on the Great Lakes in approximately thirty years and the resultant late start of the 2014 sailing season. Adjusted EBITDA was $3.0 million lower in April 2014 than in April 2013. | |||||||
| 3. NM - Not Meaningful | |||||||