Published:
American Commercial Lines Names Michael P. Ryan As President and CEO; Company Also Announces 2007 Fourth Quarter and Year-End Results
JEFFERSONVILLE, Ind., Feb. 18 /PRNewswire-FirstCall/ -- The Board of
Directors of American Commercial Lines Inc. (Nasdaq: ACLI) ("ACL" or the
"Company") today announced the appointment of Michael P. Ryan, the Company's
Senior Vice President of Sales and Marketing, to President and Chief Executive
Officer. ACL also announced its fourth quarter and year-end financial results
for 2007.
Effective March 1, 2008, Ryan will succeed Mark Holden in the role of
President and Chief Executive Officer. Mr. Ryan will also fill Mr. Holden's
seat on the Company's Board of Directors. Holden, who has led the Company
since January, 2005, informed the Board of his desire to pursue other
opportunities. Chairman of the Board, Clayton Yeutter, commented on the
transition by saying, "Mike has been an instrumental member of ACL's senior
management team, and has taken an active role in developing and executing the
Company's strategy. We are confident that under his leadership the Company
will continue to grow and improve. Yeutter added, "On behalf of the Board and
ACL we thank Mark for his dedication and service, and for putting a strong
management team in place. We wish him well in his future endeavors."
Ryan has 27 years of experience in the transportation industry, with
assignments in the truck, Class 1 rail and barge sectors. He has held senior
leadership positions in all of these units, including top positions directing
several commercial business units with CSX Transportation. Since joining ACL
in 2005, he has designed the Company's shift toward a stronger, more reliable
portfolio base. Ryan built a new Sales and Customer Service Program over the
past two years, which is focusing on business retention and organic growth,
expanding ACL's market share in more ratable lines of business. Ryan
successfully built and led similar programs in the LTL truck and Class 1 rail
venues.
Mr. Ryan stated, "We will maintain our current strategy of taking every
opportunity, both in transportation and in manufacturing, to stabilize our
revenue stream with more predictable, ratable and profitable business. We
launched this effort in 2006 with new contract agreements in our
transportation segment, and we will continue this initiative in transportation
as well as manufacturing. Our industry is subject to external forces, and we
will continue to take aggressive steps to neutralize those effects on our
revenue base and profitability."
Financial Results
Fourth Quarter 2007 Results
Revenues for the quarter were $302.5 million, a 13.8% increase compared
with $265.9 million for the fourth quarter of 2006. Net income for the quarter
was $23.7 million or $0.46 per diluted share, a 32.3% decrease compared to
$35.0 million or $0.56 per diluted share for the fourth quarter of 2006.
Results for the fourth quarter 2007 included an after-tax charge of $1.4
million or $0.03 per diluted share for the withdrawal from a multi-employer
pension plan for represented employees of the Company's terminal operations
and a $1.8 million or $0.04 per diluted share favorable tax adjustment related
to realization of certain deferred tax assets. Results for the fourth quarter
2006 included a gain of $4.8 million (net of tax) or $0.08 per diluted share
on the sale of the Company's Venezuelan operations and a charge for the early
retirement of debt of $0.9 million (net of tax) or $0.01 per diluted share.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) for
the fourth quarter 2007 were $54.4 million, an EBITDA margin of 18.0% compared
to $70.0 million for the fourth quarter 2006, an EBITDA margin of 25.9%. The
attachment to this press release reconciles net income to EBITDA.
Full-Year 2007 Results
Revenues for the full year 2007 were $1.05 billion, an 11.4% increase
compared with the $942.6 million for the full year 2006. Net income for the
full year was $44.4 million or $0.77 per diluted share, a 51.9% decrease
compared to net income for the full year 2006 of $92.3 million, or $1.47 per
diluted share. Results for 2007 included after-tax charges of $16.0 million or
$0.28 per diluted share for debt retirement expenses related to the retirement
of the Company's Senior Notes and the replacement of its credit facility.
Results for 2006 included a gain of $4.8 million (net of tax) or $0.08 per
diluted share on the sale of the Company's Venezuelan operations and a charge
for the early retirement of debt of $0.9 million (net of tax) or $0.01 per
diluted share. For the full year 2007, EBITDA was $159.8 million, an EBITDA
margin of 15.2% compared to $211.8 million for the full year 2006, an EBITDA
margin of 22.0%.
Transportation Results
In the fourth quarter 2007, revenues in transportation, which comprise
almost 80% of ACL's business, were $228.8 million, an increase of 4.7% from
the fourth quarter 2006. The increase was driven by an average fuel-neutral
rate increase of 16.4% on the liquid freight business, which more than offset
an average fuel-neutral rate decrease of 0.3% on the dry freight business,
compared to fourth quarter 2006. Excluding grain, the average fuel-neutral
rate for the dry business increased 8.0% in the fourth quarter 2007 compared
to the fourth quarter 2006.
For the full year, 2007 transportation revenues increased 2.7% over the
prior year to $808.6 million. Average fuel-neutral freight rates for the full
year were up 13.4% on the liquid business and were down 1.2% on the dry
freight business. Excluding grain, the average fuel-neutral rate for the dry
business increased 4.9% over 2006.
In the fourth quarter 2007, ACL generated approximately 11.0 billion ton-
miles compared to 11.4 billion ton-miles in the same period of the prior year,
a decrease of 3.6% with 8.0% fewer barges. For the full year 2007, ACL moved
approximately 43.6 billion ton-miles of cargo compared to 45.1 billion ton-
miles transported in 2006, a decrease of 3.4% with 5.6% fewer barges.
Revenues per barge increased 13.8% in the fourth quarter 2007 and 8.8% for the
full year 2007 compared to 2006.
Ryan commented, "Our value proposition continues to position us with price
strength from our services. In 2007, we repriced 33% of our contract
business, renewing agreements with an average 15% increase over prior year
levels. We also improved our contract protection against fuel, labor and
inflation increases to coverage in 85% of our contracts."
Manufacturing Results
ACL's manufacturing business, Jeffboat, completed 404 barges during 2007,
a 28% increase in production volume. Jeffboat sold 361 dry hopper barges, 41
liquid tank barges and two ocean-going vessels.
Manufacturing revenues, inclusive of barges manufactured for internal use
by ACL, were $76.9 million in the fourth quarter 2007 compared to $58.0
million during the same period in 2006. External revenues in the fourth
quarter 2007 increased 51.8% to $71.9 million from $47.4 million in the same
period of the prior year due to the higher level of internal builds in the
fourth quarter of 2006.
For the full year 2007, manufacturing revenues, inclusive of barges
manufactured for internal use, were $290.1 million, a 37.2% increase over the
prior year. Jeffboat had $50.1 million in internal sales to ACL's
transportation segment. Net of the internal builds, external revenues
increased 54.6% to $239.9 million for the full year 2007, compared to $155.2
million in 2006. Manufacturing operating margins declined over the prior year
due primarily to higher labor costs, reduced productivity associated with a
larger and less experienced work force, and the continuing impact of ongoing
production of barges that were bid at lower margins in 2005 and prior.
Cash Flow and Debt
In 2007, ACL generated cash from operations of $115.8 million. The
Company spent $109.3 million on capital expenditures to support its
infrastructure and growth, and invested: $15.6 million for the acquisition of
towboats and certain assets from the McKinney companies; $6.2 million for
Summit Contracting; and $4.3 million for the acquisition of Elliott Bay Design
Group. Debt increased by $320.3 million during the year to $439.8 million at
the end of 2007. The increased borrowing in 2007 was primarily the result of
$300 million used to fund the repurchase of 12 million shares of ACL common
stock. ACL had approximately 50 million shares outstanding at December 31,
2007.
Other
Separately, Christopher Black, the Company's Senior Vice President and
Chief Financial Officer, who previously announced that he would leave the
Company following the expiration of his employment agreement on February 22,
2008, has agreed to remain with the Company in his current capacity through
March 1, 2008. Thereafter, Black will serve in a consulting capacity with the
Company for a two month period to assist with the transition to a new Chief
Financial Officer.
Guidance
Due to a number of factors, ACL is suspending earnings guidance for 2008.
"The volatility in the transportation industry as a whole and grain
shipping in particular, along with a weak economy, escalating fuel costs and
unpredictable weather patterns, obscure our visibility to accurately predict
financial results at this time," said Ryan. "We will revisit this decision
later in the year, but cannot commit to reinstating guidance."
"Looking forward, we will be providing quarterly updates on reliable
metrics, which will enable investors and analysts to track our progress toward
increasing our transportation business based on a stronger customer and
contract base, and toward improving efficient production at Jeffboat."
Fourth Quarter 2007 Earnings Conference Call
American Commercial Lines management will conduct a conference call to
discuss the Company's fourth quarter and year-end financial results on
Tuesday, February 19, 2008, at 10:00 a.m. eastern time. The telephone numbers
to access the ACL Conference Call are: Domestic (866) 362-5158; International
(617) 597-5397; and the Participant Passcode is 68092740.
The call may also be accessed live on the Company's internet web site at
www.aclines.com. For those unable to participate in the live call or webcast,
the ACL Conference Call will be archived at http://www.aclines.com within
three hours of the conclusion of the live call and will remain available
through April 19, 2008.
American Commercial Lines Inc., headquartered in Jeffersonville, Indiana,
is an integrated marine transportation and service company operating in the
United States Jones Act trades, with approximately $1 billion in revenues and
approximately 3,300 employees as of December 31, 2007. For more information
about American Commercial Lines Inc. visit www.aclines.com.
Forward-Looking Statements
This release includes certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on management's present expectations and
beliefs about future events. As with any projection or forecast, these
statements are inherently susceptible to risks, uncertainty and changes in
circumstance. Important factors could cause actual results to differ
materially from those expressed or implied by the forward-looking statements
and should be considered in evaluating the outlook of American Commercial
Lines Inc. Risks and uncertainties are detailed from time to time in American
Commercial Lines Inc.'s filings with the SEC, including our most recent 10-K.
American Commercial Lines Inc. is under no obligation to, and expressly
disclaims any obligation to, update or alter its forward-looking statements,
whether as a result of changes, new information, subsequent events or
otherwise.
AMERICAN COMMERCIAL LINES INC.
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Dollars in thousands, except shares and per share amounts)
(Unaudited)
Quarter Ended Dec. 31, Year Ended Dec. 31,
2007 2006 2007 2006
Revenues
Transportation and
Services $230,647 $218,528 $810,443 $787,348
Manufacturing 71,888 47,370 239,917 155,204
Revenues 302,535 265,898 1,050,360 942,552
Cost of Sales
Transportation and
Services 175,937 151,578 645,237 582,271
Manufacturing 66,952 42,463 228,190 141,589
Cost of Sales 242,889 194,041 873,427 723,860
Gross Profit 59,646 71,857 176,933 218,692
Selling, General and
Administrative Expenses 18,268 19,424 68,727 66,280
Operating Income 41,378 52,433 108,206 152,412
Other Expense (Income)
Interest Expense 8,093 3,834 20,578 18,354
Debt Retirement
Expenses - 1,387 23,938 1,437
Other, Net (486) (1,586) (2,532) (3,799)
Other Expenses 7,607 3,635 41,984 15,992
Income from Continuing
Operations before
Income Taxes 33,771 48,798 66,222 136,420
Income Taxes 10,126 16,804 21,855 49,822
Income from Continuing
Operations 23,645 31,994 44,367 86,598
Discontinued Operations,
Net of Tax 40 3,000 (6) 5,654
Net Income $23,685 $34,994 $44,361 $92,252
Basic earnings per common
share:
Income from continuing
operations $0.48 $0.52 $0.79 $1.43
Income from
discontinued
operations, net of
tax - 0.05 - 0.09
Basic earnings per common
share $0.48 $0.57 $0.79 $1.52
Earnings per common share
- assuming dilution:
Income from continuing
operations $0.46 $0.51 $0.77 $1.38
Income from
discontinued
operations, net of
tax - 0.05 - 0.09
Earnings per common share
- assuming dilution $0.46 $0.56 $0.77 $1.47
Weighted Average Shares
Outstanding (1):
Basic 49,780,080 60,952,370 56,245,368 60,742,980
Diluted 51,212,682 63,007,962 57,679,406 62,800,804
(1) Gives effect to the two-for-one stock split to shareholders of record
on February 6, 2007.
AMERICAN COMMERCIAL LINES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except shares and per share amounts)
(Unaudited)
December 31, December 31,
2007 2006 (1)
ASSETS
Current Assets
Cash and Cash Equivalents $5,021 $5,113
Accounts Receivable, Net 114,921 102,228
Inventory 70,890 61,504
Deferred Tax Asset 2,582 2,173
Other Current Assets 26,661 26,167
Total Current Assets 220,075 197,185
Properties-Net 511,832 455,710
Investment in Equity Investees 3,456 3,527
Other Assets 25,448 14,581
Total Assets $760,811 $671,003
LIABILITIES
Current Liabilities
Accounts Payable $61,130 $53,607
Accrued Payroll and Fringe
Benefits 15,720 28,267
Deferred Revenue 17,824 16,803
Accrued Claims and Insurance
Premiums 15,647 15,754
Accrued Interest 1,688 4,466
Customer Deposits 5,596 9,145
Other Liabilities 32,036 24,892
Total Current Liabilities 149,641 152,934
Long Term Debt 439,760 119,500
Pension Liability 5,252 16,026
Deferred Tax Liability 26,569 14,014
Other Long Term Liabilities 14,198 9,876
Total Liabilities 635,420 312,350
STOCKHOLDERS' EQUITY
Common stock; authorized 250,000,000
shares at $.01 par value;
62,549,666 and 61,883,556
shares issued and outstanding
as of December 31, 2007 and
December 31, 2006, respectively 626 619
Treasury Stock; 12,407,006 and
172,320 shares at December 31, 2007
and December 31, 2006, respectively (309,517) (3,207)
Other Capital 279,266 259,409
Retained Earnings 148,426 104,065
Accumulated Other Comprehensive
Income (Loss) 6,590 (2,233)
Total Stockholders' Equity 125,391 358,653
Total Liabilities and
Stockholders' Equity $760,811 $671,003
(1) The Condensed Consolidated Balance Sheets at December 31, 2007 and
December 31, 2006 have been derived from the audited consolidated
financial statements at that date, but does not included all the
information and footnotes required by generally accepted accounting
principles.
AMERICAN COMMERCIAL LINES INC.
NET INCOME TO EBITDA RECONCILIATION
(Dollars in thousands)
(Unaudited)
Quarter Ended Dec. 31, Year Ended Dec. 31,
2007 2006 2007 2006
Net Income from Continuing
Operations $23,645 $31,994 $44,367 $86,598
Discontinued Operations, Net of
Income Taxes 40 3,000 (6) 5,654
Consolidated Net Income $23,685 $34,994 $44,361 $92,252
Adjustments from Continuing
Operations:
Interest Income (19) (20) (161) (46)
Interest Expense 8,093 3,834 20,578 18,354
Debt Retirement Expenses - 1,387 23,938 1,437
Depreciation and Amortization 12,606 12,075 49,371 47,378
Taxes 10,126 16,804 21,855 49,822
Adjustments from Discontinued
Operations:
Interest Income (23) (68) (134) (651)
Depreciation and Amortization - - - 1,428
Taxes (22) 956 (50) 1,837
EBITDA from Continuing Operations 54,451 66,074 159,948 203,543
EBITDA from Discontinued Operations (5) 3,888 (190) 8,268
Consolidated EBITDA $54,446 $69,962 $159,758 $211,811
EBITDA from Continuing Operations by
Segment:
Transportation Services Net Income $19,913 $28,335 $36,389 $78,364
Interest Income (18) (20) (160) (46)
Interest Expense 8,093 3,834 20,578 18,354
Debt Retirement Expenses - 1,387 23,938 1,437
Depreciation and Amortization 11,800 11,553 46,694 45,489
Taxes 10,126 16,804 21,855 49,822
Transportation Services EBITDA $49,914 $61,893 $149,294 $193,420
Manufacturing Net Income $4,630 $5,696 $18,850 $19,116
Interest Income - - - -
Interest Expense - - - -
Depreciation and Amortization 724 522 2,595 1,889
Taxes - - - -
Total Manufacturing EBITDA 5,354 6,218 21,445 21,005
Intersegment Profit (1,083) (2,037) (11,057) (10,882)
External Manufacturing EBITDA $4,271 $4,181 $10,388 $10,123
Management considers EBITDA to be a meaningful indicator of operating
performance and uses it as a measure to assess the operating performance
of the Company's business segments. EBITDA provides us with an
understanding of one aspect of earnings before the impact of investing and
financing transactions and income taxes. EBITDA should not be construed as
a substitute for net income or as a better measure of liquidity than cash
flow from operating activities, which is determined in accordance with
generally accepted accounting principles ("GAAP"). EBITDA excludes
components that are significant in understanding and assessing our results
of operations and cash flows. In addition, EBITDA is not a term defined by
GAAP and as a result our measure of EBITDA might not be comparable to
similarly titled measures used by other companies.
However, the Company believes that EBITDA is relevant and useful
information, which is often reported and widely used by analysts,
investors and other interested parties in our industry. Accordingly, the
Company is disclosing this information to permit a more comprehensive
analysis of its operating performance.
AMERICAN COMMERCIAL LINES INC.
Statement of Operating Income by Reportable Segment
(Dollars in thousands)
(Unaudited)
All
Reportable Segments Other Inter-
Transporta- Manufactur- Segments segment
tion ing (1) Elimination Total
Quarter ended
December 31, 2007
Total revenue $229,027 $76,860 $1,929 $(5,281) $302,535
Intersegment revenues 206 4,972 103 (5,281) -
Revenue from
external customers 228,821 71,888 1,826 - 302,535
Operating expense
Materials,
supplies and
other 73,707 - - - 73,707
Rent 6,045 - - - 6,045
Labor and fringe
benefits 30,724 - - - 30,724
Fuel 50,446 - - - 50,446
Depreciation and
amortization 11,800 - - - 11,800
Taxes, other
than income
taxes 4,534 - - - 4,534
Gain on
disposition of
equipment (1,909) - - - (1,909)
Cost of goods
sold - 66,952 590 - 67,542
Total cost
of sales 175,347 66,952 590 - 242,889
Selling, general
& administrative 16,002 1,224 1,042 - 18,268
Total
operating
expenses 191,349 68,176 1,632 - 261,157
Operating income $37,472 $3,712 $194 $- $41,378
Quarter ended
December 31, 2006
Total revenue $219,068 $58,045 $- $(11,215) $265,898
Intersegment revenues 540 10,675 - (11,215) -
Revenue from
external customers 218,528 47,370 - - 265,898
Operating expense
Materials,
supplies and
other 67,097 - - - 67,097
Rent 5,893 - - - 5,893
Labor and fringe
benefits 24,297 - - - 24,297
Fuel 38,405 - - - 38,405
Depreciation and
amortization 11,553 - - - 11,553
Taxes, other
than income
taxes 4,483 - - - 4,483
Gain on
disposition of
equipment (150) - - - (150)
Cost of goods
sold - 42,463 - - 42,463
Total cost
of sales 151,578 42,463 - - 194,041
Selling, general
& administrative 17,830 1,594 - - 19,424
Total
operating
expenses 169,408 44,057 - - 213,465
Operating income $49,120 $3,313 $- $- $52,433
(1) Financial data below the reporting thresholds is attributable to a
segment that provides professional services.
AMERICAN COMMERCIAL LINES INC.
Statement of Operating Income by Reportable Segment
(Dollars in thousands)
(Unaudited)
All
Reportable Segments Other Inter-
Transporta- Manufactur- Segments segment
tion ing (1) Elimination Total
Year ended December
31, 2007
Total revenue $809,499 $290,053 $1,929 $(51,121)$1,050,360
Intersegment revenues 882 50,136 103 (51,121) -
Revenue from
external customers 808,617 239,917 1,826 - 1,050,360
Operating expense
Materials,
supplies and
other 279,359 - - - 279,359
Rent 24,595 - - - 24,595
Labor and fringe
benefits 111,617 - - - 111,617
Fuel 169,178 - - - 169,178
Depreciation and
amortization 46,694 - - - 46,694
Taxes, other
than income
taxes 16,594 - - - 16,594
Gain on
disposition of
equipment (3,390) - - - (3,390)
Cost of goods
sold - 228,190 590 - 228,780
Total cost
of sales 644,647 228,190 590 - 873,427
Selling, general
& administrative 63,627 4,058 1,042 - 68,727
Total
operating
expenses 708,274 232,248 1,632 - 942,154
Operating income $100,343 $7,669 $194 $- $108,206
Year ended December
31, 2006
Total revenue $788,376 $211,367 $- $(57,191) $942,552
Intersegment revenues 1,028 56,163 - (57,191) -
Revenue from
external customers 787,348 155,204 - - 942,552
Operating expense
Materials,
supplies and
other 249,500 - - - 249,500
Rent 22,445 - - - 22,445
Labor and fringe
benefits 90,294 - - - 90,294
Fuel 157,070 - - - 157,070
Depreciation and
amortization 45,489 - - - 45,489
Taxes, other
than income
taxes 17,667 - - - 17,667
Gain on
disposition of
equipment (194) - - - (194)
Cost of goods
sold - 141,589 - - 141,589
Total cost
of sales 582,271 141,589 - - 723,860
Selling, general
& administrative 60,633 5,647 - - 66,280
Total
operating
expenses 642,904 147,236 - - 790,140
Operating income $144,444 $7,968 $- $- $152,412
(1) Financial data below the reporting thresholds is attributable to a
segment that provides professional services.
AMERICAN COMMERCIAL LINES INC.
SELECTED FINANCIAL AND NONFINANCIAL DATA
(Dollars in thousands except where noted)
(Unaudited)
Quarter Ended Dec. 31, Year Ended Dec. 31,
2007 2006 2007 2006
Consolidated EBITDA $54,446 $69,962 $159,758 $211,811
Transportation Revenue and EBITDA
Revenue $228,821 $218,528 $808,617 $787,348
EBITDA 49,914 61,893 149,294 193,420
Manufacturing Revenue and EBITDA
(External and Internal)
Revenue $76,860 $58,045 $290,053 $211,367
EBITDA 5,354 6,218 21,445 21,005
Manufacturing External Revenue and
EBITDA
Revenue $71,888 $47,370 $239,917 $155,204
EBITDA 4,271 4,181 10,388 10,123
Average Domestic Barges Operated
Dry 2,457 2,719 2,539 2,721
Liquid 387 373 380 371
Total 2,844 3,092 2,919 3,092
Fuel Price (Average Dollars per
gallon) $2.52 $1.88 $2.13 $1.96
Capital Expenditures (including
software) $28,116 $31,721 $112,704 $92,222
Management considers EBITDA to be a meaningful indicator of operating
performance and uses it as a measure to assess the operating performance
of the Company's business segments. EBITDA provides us with an
understanding of the Company's revenues before the impact of investing and
financing transactions and income taxes. EBITDA should not be construed as
a substitute for net income or as a better measure of liquidity than cash
flow from operating activities, which is determined in accordance with
generally accepted accounting principles ("GAAP"). EBITDA excludes
components that are significant in understanding and assessing our results
of operations and cash flows. In addition, EBITDA is not a term defined by
GAAP and as a result our measure of EBITDA might not be comparable to
similarly titled measures used by other companies.
However, the Company believes that EBITDA is relevant and useful
information, which is often reported and widely used by analysts,
investors and other interested parties in our industry. Accordingly, the
Company is disclosing this information to permit a more comprehensive
analysis of its operating performance.
SOURCE American Commercial Lines Inc.
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
Daily NewsTags: ,TRN,MAR,ERN,CCA,PER,IN-AmerCommLines-ERN
_ _Is your favorite bookmark site missing?
Ask for it.
Search News
Daily News
