- Adjusted Full-Year EBITDA from Continuing Operations Totaled $96.4 Million
- Comparable Volume Down 1.1% from 2009; Rate, Net of Fuel, Slightly Lower
- Adjusted Free Cash Flow from Continuing Operations of $40.5 Million
- Company in Discussions with Lenders as it Moves Forward to Refinance Debt
CHARLOTTE, N.C., March 3, 2011 /PRNewswire via COMTEX/ -- Horizon Lines, Inc. (NYSE: HRZ) today reported financial results for its fiscal fourth quarter and year ended December 26, 2010.
As a result of the company's previously announced plans to divest its logistics business, financial results are being presented on a continuing operations basis, excluding the discontinued logistics operations.
On a GAAP basis, the fourth-quarter net loss from continuing operations totaled $46.4 million, or $1.50 per share, on revenue from continuing operations of $298.8 million. On an adjusted basis, the fourth-quarter net loss from continuing operations totaled $10.2 million, or $0.33 per diluted share, after excluding charges totaling $36.2 million after tax, or $1.17 per diluted share. The majority of these charges, $30.0 million, represents the net present value of a $45.0 million, non-interest bearing fine associated with the resolution of the Department of Justice's antitrust investigation. The remaining charges include a reduction in non-union workforce, antitrust-related legal fees, an agreement to settle indirect purchaser litigation in Puerto Rico, and equipment impairment charges.
In the year-ago fourth quarter, Horizon Lines reported net income from continuing operations of $1.6 million, or $0.05 per diluted share, on revenue of $286.7 million. On an adjusted basis, net income totaled $3.9 million, or $0.12 per diluted share, after excluding antitrust-related legal expenses, costs for early retirement of certain union employees, and tax adjustments totaling $2.3 million, or $0.07 per share.
Container volume for the 2010 fourth quarter totaled 69,427 loads, a 7.9% increase from 64,320 loads for the same period a year ago, due largely to the extra week and the contribution of the company's new China service, which began operations in December. Excluding these factors, fourth-quarter volume declined 1.1% from a year ago. Comparable container volume (excluding the extra week and international loads) for the year totaled 254,854 loads, down 1.1% from 257,625 loads a year ago.
Container rates, net of fuel, for the 2010 fourth quarter, eased to $3,229 from $3,251 for the fourth quarter a year ago, largely a result of continued pricing pressures in Puerto Rico. For the year, container rates, net of fuel, were $3,250, marginally below the rate of $3,262 a year ago.
"The fourth-quarter turned out to be very challenging, due to lower-than-anticipated volumes in Hawaii, particularly in the latter months of the quarter, increased fuel prices, continuing rate pressures in Puerto Rico, and anticipated start-up costs related to our new China service," said Brian W. Taylor, Executive Vice President and Chief Operating Officer. "Despite these challenges we delivered a decent financial performance for the year, including adjusted EBITDA from continuing operations of $96.4 million and adjusted free cash flow from continuing operations of $40.5 million.
"Our achievements for the quarter included the successful launch of our new Five Star Express service between the U.S. West Coast and China, which is operating according to management expectations," Mr. Taylor said. "In addition, we continued to demonstrate diligent cost management, maintained relatively consistent container rates in the face of continuing pricing pressures, and delivered excellent customer service and improved schedule integrity across our tradelanes."