Horizon Lines reported a profit of $1.4 million in the third quarter ending Sept. 23, compared to a $111.7 million loss in the same 2011 period.
Revenue was $279.6 million for the third quarter this year, compared to $267.6 million in the same 2011 period. Results, the company noted, were presented on a continuing operations basis, excluding its discontinued transpacific FSX service and logistics operations
Sam Woodward, president and chief executive officer, said the company had a 3.4 percent improvement in container volume and a 2.9 percent increase in container revenue, net of fuel surcharges, for the third quarter, relative to the same period a year ago.
"Volume increases in Hawaii and Alaska offset volume weakness in Puerto Rico. However, third-quarter adjusted EBITDA of $27.0 million declined by $6.0 million from a year ago, largely due to $4.6 million of incremental transit and crew costs associated with dry-docking three Puerto Rico vessels in China," he said. "We are doing this to facilitate extensive maintenance and high quality enhancements in the most cost-efficient manner possible iorder to improve vessel reliability and service integrity in Puerto Rico."
For the full fiscal year, Horizon projects container volumes will increase slightly from 2011 levels, due to modestly improving economic conditions and consumer sentiment in certain markets.
The company said container rates, net of fuel surcharges, are expected to rise slightly, mitigating much of the contractual rate increases the company is incurring this year from union members, transportation service providers and for other marine services.
Fuel prices are projected to remain at historically high levels, averaging $700 per ton in the fourth quarter and $690-$695 per ton for the full year.
The company said it expects cash flow from operations and available cash will be adequate to meet liquidity needs over the next 12 months, and projects total liquidity to about $40 million at the end of the current fiscal year. - Chris Dupin