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8-K - FORM 8-K - ACL I Corpd490900d8k.htm

Exhibit 99.1

COMMERCIAL BARGE LINE COMPANY ANNOUNCES RESULTS

FOR QUARTER AND YEAR ENDED

DECEMBER 31, 2012

Highlights

 

   

Adjusted EBITDAR of $232.1 million for the year – a 33% increase over prior year

 

   

Operating income of $61.1 million for the year - an increase of $57.4 million compared to prior year

 

   

Cash generated from operating activities of $65.8 million during the quarter

 

   

Net Funded Debt to Adjusted EBITDAR ratio of 2.0 times at year-end

 

   

Strong liquidity with $176.6 million in available borrowing capacity as of December 31, 2012

 

   

Company announces offering of $650 million senior secured term loan. Proceeds to redeem ACL I Notes and Senior Notes of the Company and pay distribution to shareholders

February 25, 2013 - Commercial Barge Line Company (the “Company,”) today announced results for the quarter and year ended December 31, 2012. For the year, the Company reported total revenues of $811.6 million and Adjusted EBITDAR of $232.1 million. Compared to 2011 results, revenues declined $41.4 million, or 4.9%, while Adjusted EBITDAR improved by $57.8 million, or 33.2%. For the quarter, total revenues were $207.9 million compared to $244.5 million in 2011 and Adjusted EBITDAR was $62.8 million compared to $60.3 million in 2011.

Commenting on the results, Mark Knoy, President and Chief Executive Officer, stated, “We are quite pleased with the continued strong operating performance we experienced, despite the challenges we faced due to the drought-related operating conditions as well as its impact on the US grain harvest. While we experienced a decline in transportation segment revenue of over $26 million in the quarter compared to last year, driven by a 27% reduction in grain ton-mile volume, our EBITDAR margin was essentially flat with what we achieved in the prior year and our Adjusted EBITDAR, which adjusts for non-comparable items including our estimate of drought-impact, exceeded last year by $2.5 million, resulting in a 5.6 percentage point increase in our Adjusted EBITDAR margin. For the year, this trend was even more marked, with an improvement in Adjusted EBITDAR of $57.8 million on a transportation revenue base that was nearly $34 million lower, for an Adjusted EBITDAR margin improvement of over 8%. Our ability to continue to deliver improved operating performance and earnings is the direct result of our execution of the operating priorities that we have been driving for the past two years – maintaining a focused distribution footprint within our core operating network, reducing non-value miles, investing wisely to improve the reliability of our equipment and providing a safe environment for our teammates to deliver on our productivity initiatives.”

As previously announced, the Company entered into new contractual agreements with MEG Energy (US) Inc. and SeaRiver Maritime Inc. (a marine affiliate of Exxon Mobil Corporation) (“Exxon”) during the fourth quarter, further extending the Company’s scope within the fast growing petroleum distribution market. Mr. Knoy stated, “We have identified the petroleum market as a significant growth opportunity for the Company, and have aggressively pursued new opportunities in this space. We are excited about working with MEG Energy and Exxon on these new contracts. Bolstered by these new relationships and the anticipated additions of tank barges to our fleet during 2013, we will move more than 60 million barrels of crude oil, refined petroleum products, chemicals and other liquid products on an annualized basis, greatly increasing our market position in this fast-growing sector, and thereby strengthening our business mix and improving our quality of earnings. As we continue to expand in this space, we expect that our liquids business will contribute approximately 60% of our consolidated EBITDAR in the future.”


During the fourth quarter, the Company continued to experience adverse operating conditions associated with the severe drought which began during the late second quarter of 2012. Commenting on operating conditions during the quarter, Mr. Knoy stated, “Operating conditions on the inland waterways gradually improved as we moved through the fourth quarter. We saw some much needed precipitation through the Ohio River Valley and Lower Mississippi River area at key points during that time. These improved weather patterns resulted in river conditions in these regions that allowed us to begin operating at near-normal barge drafts and tow sizes as we entered 2013. Conditions on the Mississippi River between St. Louis and Cairo, Illinois continued to disrupt operations in that area as well as at our St. Louis coal transfer terminal; however, we have seen these conditions improve as well with some late-January precipitation and today, operating conditions are back to normal. As a result, we believe that we will no longer experience drought-related operating constraints by the end of the first quarter of 2013 and the negative financial impact of these challenges will then be behind us.”

Senior Secured Term Loan Offering Announced

The Company today announced that it has launched a financing whereby it intends to raise $650 million through a new senior secured term loan (the “Term Loan Financing”) with Merrill Lynch, Pierce, Fenner & Smith Incorporated, Goldman Sachs & Co., UBS Investment Bank and Wells Fargo Securities as Joint Lead Arrangers and Joint-Bookrunners, together with PNC Capital Markets LLC, Royal Bank of Scotland and SunTrust Robinson Humphrey, Inc. as Co-Managers. The Company also announced that, concurrent with the Term Loan Financing, it expects to increase the overall commitment of its asset-based revolving line of credit from $475 million to $550 million (together with the Term Loan Financing, the “Financing”). The net proceeds from the Financing, if consummated, are expected to be used to discharge and then subsequently redeem the outstanding principal amount of: (i) ACL I Corporation’s 10.625%/11.375% Senior PIK Toggle Notes due 2016 at a redemption price of 105% of the principal amount and (ii) the Company’s 12 1/2% Senior Secured Notes due 2017 at a redemption price of 106.25% of the principal amount, in each case, plus accrued and unpaid interest to the date of redemption. The proceeds for the redemption will be deposited with the trustee of each series of notes upon the closing of the Financing, at which time the respective obligations under the related indentures will be discharged. It is expected that the redemption payments will be received by the holders of ACL I Corporation’s notes in mid-April and by the holders of the Company’s notes in mid-July. In addition, proceeds of the Financing will fund a $207 million dividend to the shareholders of the Company’s ultimate Parent, Finn Holding Corporation.

2013 Outlook

Commenting on the Company’s outlook, Mr. Knoy said, “We continue to see opportunities in the energy sector, as North American oil production continues to rise. Tank barge capacity in the industry continues to be in tight supply, so we are confident that we will be able to quickly realize the earnings benefit of the new tank barges that will be completed by Jeffboat during the first half of 2013. We estimate that the strength of this market segment coupled with our significant investment in equipment to serve it will provide the Company with approximately $20 million in improved annual EBITDAR performance when fully deployed. North American production of natural gas will continue to support a pricing environment that will support growing chemical production in the US, further increasing the demand for tank barge capacity. While low natural gas prices will pressure domestic coal volumes as domestic utilities increase their use of gas powered generation, we believe that our exposure to this is mitigated as our sole domestic coal contract is dependent upon Powder River Basin coal, which is the most cost competitive coal versus natural gas. We do, however, remain cautious on our opportunities in the export coal market in the near term due to negative volume pressure resulting from high coal inventories in Europe and continued downward pricing pressure on open barge capacity in the US. A significant majority of our dry bulk cargo business is contracted, and as such, will be relatively stable, subject to some nearby variation as the US economy continues to gain its footing.”


“Although river conditions are now back to pre-drought conditions, we will continue to suffer market related effects of the 2012 drought through the first half of 2013, as grain stockpiles available for export have fallen off significantly from historic levels. This reduction in available product has also driven domestic prices to levels that are not competitive in the international export markets, thereby putting further downward pressure on export volumes. We do expect that domestic plantings will again be at historically high levels in 2013, and that we may see improved dynamics in this sector when the first harvested acres reach market in the early third quarter.”

Mr. Knoy went on to say, “We entered 2013 positioned very well to respond to improved operating and market conditions as a result of the investments made in our fleet assets over the past 18 months. We have eliminated nearly 450 of our poorest performing barges from our fleet and have invested over $90 million in our fleet of tow boats, greatly improving their reliability, towing capacity and fuel efficiency. We countered the impact of these barge retirements through the addition of 95 new covered hopper barges during the year. In addition, we invested $69 million in new tank barges to take advantage of the strong market fundamentals in that sector and similarly expect to invest an additional $38 million in 2013 to support contracted business in this space. With these actions, we have improved the age of our covered hopper fleet to approximately 12 years and the age of our 30,000 barrel tank barge fleet will be approximately the same level as we complete our current construction program in 2013. Despite the magnitude of these investments, we entered 2013 with significant liquidity, with $177 million of total availability on our line of credit.” The Company estimates that capital spending for 2013 will be in the range of $40 million to $45 million, excluding the $38 million that will be spent to complete the new barge construction referred to above.

Adjusted EBITDAR

For the year ended December 31, 2012, Adjusted EBITDAR was $232.1 million, a 33.2% increase over $174.3 million for the prior year. The improvement in Adjusted EBITDAR over prior year was driven by a $26.4 million reduction in repairs and claims costs, $16.0 million in improved boat productivity resulting from fewer boats in service, $5.3 million in reduced compensation and selling, general and administrative expenses, $1.2 million improvement in fuel efficiency and price and $2.0 million higher manufacturing margin resulting from higher sales and improved efficiency. The year’s gains were partially offset by $5.5 million in pricing softness, where pricing strength in the Company’s liquids business was more than offset by weakness in the grain and export coal markets. Gains on the sale of excess assets contributed $17.3 million to the current year improvement.

Adjusted EBITDAR for the three months ended December 31, 2012 was $62.8 million compared to $60.3 million in the prior year quarter. The change in Adjusted EBITDAR included $9.6 million lower repairs and claims, $3.8 million in reduced compensation costs and selling, general and administrative expenses, $1.1 million improvement in boat productivity, $0.9 million improvement in fuel efficiency and price, and $1.2 million as the pricing of liquids and coal more than offset negative grain pricing during the quarter. These positive factors were partially offset by $5.6 million in margin impact of reduced volumes and lower gains on the sale of excess assets of $4.4 million.

Adjusted EBITDAR includes an add-back totaling $43.9 million for the year and $17.2 million for the fourth quarter related to the estimated impact of the adverse operating conditions experienced by the Company as a result of this year’s extraordinary drought. These adjustments were estimated by comparing the Company’s actual operating performance metrics to those that were achieved during the months leading up to the drought period. The impact related to the drought is attributable to the following factors:

 

   

Reduction in Tons per Load: Extremely low Mississippi River levels limited the amount of cargo that could be carried due to reduced drafts. This decline in tons transported resulted in a reduction in Adjusted EBITDAR of $10.1 million for the quarter and $20.9 million for the year.

 

   

Reduction in Barges per Tow: The number of barges per tow was reduced at various times during the drought to facilitate safe operations. As a result, the Company required more tow boats in service to deliver the equivalent number of barges based upon number of barges per tow. The cost of this excess towing capacity during the fourth quarter was $4.3 million and $10.3 million for the year.


   

Reduction in Asset Turns: River conditions led to more traffic disruptions on the Mississippi River south of St. Louis, resulting in a reduced turn of fleet assets. As a result, the Company was required to use more tow boat power to deliver booked freight during the quarter and the slower turn also impacted the number of revenue earning days on the barge fleet. The impact of these incremental costs and lost margin totaled $2.8 million during the quarter and $12.7 million year-to-date.

Revenues

Revenues for the year ended December 31, 2012 decreased 4.9% over prior year revenues to $811.6 million. Transportation segment revenues and ton-mile volumes were negatively impacted by the persistent, severe drought conditions experienced over the second half of the year, resulting in a decrease in revenues of 4.7% to $687.2 million and a decrease in ton-mile volumes of 8.6% to 31.8 billion ton-miles when compared to the prior year. We estimate the drought impact on load drafts, tow size, and equipment turns reduced our ton-mile volume by approximately 1.7 billion ton-miles and our revenues by $43.9 million. On a fuel-neutral basis, transportation revenues were down 6.5% for the year driven by the drought-related decline in ton-miles in the second half of the year.

Revenues for the quarter ended December 31, 2012 decreased 15.0% to $207.9 million. Drought-impacted transportation segment revenues decreased by 13.1% to $174.1 million while ton-mile volumes decreased by 20.0% to 7.4 billion. On a fuel-neutral basis, transportation revenues were down 14.0% for the quarter driven by the drought-related decline in ton-miles. Additionally, grain export shipments were significantly lower due to a smaller harvest and drought operating restrictions. Shipments of steel, salt and other bulk cargoes were also impacted by the drought operating conditions.

Manufacturing segment revenues decreased $7.5 million, or 5.7% for the year ended December 31, 2012 to $124.4 million, with 220 total barges produced for external customers in 2012 compared to 239 in the prior year. The manufacturing segment produced 80 total barges for the transportation segment, or 13 more barges in 2012 than in 2011. Current year internal production included 45 covered dry hopper barges, 21 liquid tank barges and 14 oversized tank barges. In the prior year only 2 oversized tank barges and 65 covered dry hopper barges were produced for the transportation segment. Manufacturing segment revenue decreased $10.5 million, or 23.7%, in the quarter, reflecting the delivery of 58 barges to third-parties compared to 77 in the prior year period. The manufacturing segment’s external revenue backlog at the end of 2012 was $52.4 million, representing 2013 production backlog compared to a backlog of $101.2 million as of December 31, 2011. More recently, the external revenue backlog has increased to approximately $140 million as the remainder of 2013 production capacity, beyond the completion of the oversize tank barges currently in production for the transportation segment, has been committed for sale to third parties. The manufacturing segment’s backlog fluctuates based on the Company’s decisions regarding the balance of internal and external production slots.

Operating Results

As a result of the magnitude of non-comparable items, operating results of the Company are discussed herein based on Adjusted EBITDAR, which is a non-GAAP financial measure that the Company believes provides investors with a useful tool for analyzing its operating results as it eliminates the impact of certain non-comparable items. The Company has included a reconciliation of its financial results to Adjusted EBITDAR elsewhere in this release.

For the year ended December 31, 2012, the Company generated operating income of $61.1 million compared to operating income of $3.7 million for the same period in the prior year. This increase in operating income of $57.4 million between periods was driven primarily by lower repairs and claims; lower consulting, restructuring and acquisition expenses; an insurance gain related to the 2011 flooding; lower depreciation and amortization and higher gains on asset disposals. These positive items more than offset the negative margin impact of drought related operating conditions and lower volumes.


For the quarter ended December 31, 2012, operating income was $20.7 million as compared to $22.9 million for the same period of the prior year.

Liquidity and Debt Position

As of December 31, 2012, our outstanding debt totaled $435.7 million, including the unamortized purchase accounting debt premium of $23.6 million. The Company was in compliance with all debt covenants on December 31, 2012 and had $176.6 million in remaining total availability under its credit facility. The credit facility has no maintenance financial covenants unless borrowing availability is generally less than $48.8 million. As of December 31, 2012, the present value of lease payments associated with revenue generating equipment was $42.8 million. Including the present value of these lease payments and excluding the unamortized premium on the 2017 Notes, the Company’s total funded net debt was $454.9 million, or 2.0 times Adjusted EBITDAR as of December 31, 2012 compared to 2.3 times as of December 31, 2011.

Updated Fleet Appraisal

The Company received an updated appraisal of its fleet in February of 2013 stating that fair market value of its towboats is $447.6 million and of barges is $852.4 million for a total fleet value of over $1.3 billion.

About the Company

Commercial Barge Line Company, headquartered in Jeffersonville, Indiana, is an integrated marine transportation and service company operating in the United States Jones Act trades. For more information about the Company, visit the Company’s website at 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 Commercial Barge Line Company. Risks and uncertainties are detailed from time to time in Commercial Barge Line Company’s filings with the SEC, including our report on Form 10-K for the year ended December 31, 2011 and our most recent Form 10-Q. Commercial Barge Line Company 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.


COMMERCIAL BARGE LINE COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands)

(Unaudited)

 

     Quarter Ended December 31,  
     2012     2011  

Revenues

    

Transportation and Services

   $ 174,121      $ 200,302   

Manufacturing

     33,743        44,202   
  

 

 

   

 

 

 

Revenues

     207,864        244,504   
  

 

 

   

 

 

 

Cost of Sales

    

Transportation and Services

     148,022        166,964   

Manufacturing

     30,096        41,494   
  

 

 

   

 

 

 

Cost of Sales

     178,118        208,458   
  

 

 

   

 

 

 

Gross Profit

     29,746        36,046   

Selling, General and Administrative Expenses

     9,040        13,129   
  

 

 

   

 

 

 

Operating Income

     20,706        22,917   
  

 

 

   

 

 

 

Other Expense (Income)

    

Interest Expense

     8,093        7,318   

Debt Retirement Expenses

     —          —     

Other, Net

     (380     (436
  

 

 

   

 

 

 

Other Expenses

     7,713        6,882   
  

 

 

   

 

 

 

Income from Continuing Operations before Income Taxes

     12,993        16,035   

Income Taxes

     3,327        6,174   
  

 

 

   

 

 

 

Income from Continuing Operations

     9,666        9,861   

Discontinued Operations, Net of Tax

     —          367   
  

 

 

   

 

 

 

Net Income

   $ 9,666      $ 10,228   
  

 

 

   

 

 

 


COMMERCIAL BARGE LINE COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands)

 

     Year Ended December 31,  
     2012     2011  
     (Unaudited)        

Revenues

    

Transportation and Services

   $ 687,178      $ 721,095   

Manufacturing

     124,379        131,842   
  

 

 

   

 

 

 

Revenues

     811,557        852,937   
  

 

 

   

 

 

 

Cost of Sales

    

Transportation and Services

     595,411        665,266   

Manufacturing

     111,343        127,871   
  

 

 

   

 

 

 

Cost of Sales

     706,754        793,137   
  

 

 

   

 

 

 

Gross Profit

     104,803        59,800   

Selling, General and Administrative Expenses

     43,663        56,095   
  

 

 

   

 

 

 

Operating Income

     61,140        3,705   
  

 

 

   

 

 

 

Other Expense (Income)

    

Interest Expense

     31,278        29,963   

Debt Retirement Expenses

     —          —     

Other, Net

     (864     (968
  

 

 

   

 

 

 

Other Expenses

     30,414        28,995   
  

 

 

   

 

 

 

Income (Loss) from Continuing Operations before Income Taxes

     30,726        (25,290

Income Tax (Benefit) Expense

     9,986        (10,610
  

 

 

   

 

 

 

Income (Loss) from Continuing Operations

     20,740        (14,680

Discontinued Operations, Net of Tax

     26        489   
  

 

 

   

 

 

 

Net Income (Loss)

   $ 20,766      $ (14,191
  

 

 

   

 

 

 


COMMERCIAL BARGE LINE COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

     December 31,     December 31,  
     2012     2011  
     (Unaudited)        
ASSETS     

Current Assets

    

Cash and Cash Equivalents

   $ 2,956      $ 938   

Accounts Receivable, Net

     76,859        87,368   

Inventory

     50,930        62,483   

Deferred Tax Asset

     4,407        6,390   

Assets Held for Sale

     1,311        1,612   

Prepaid and Other Current Assets

     18,180        19,308   
  

 

 

   

 

 

 

Total Current Assets

     154,643        178,099   

Properties, Net

     1,035,367        935,576   

Investment in Equity Investees

     4,340        6,470   

Accounts Receivable, Related Party, Net

     12,140        12,021   

Goodwill

     17,692        17,692   

Other Assets

     38,384        45,521   
  

 

 

   

 

 

 

Total Assets

   $ 1,262,566      $ 1,195,379   
  

 

 

   

 

 

 
LIABILITIES     

Current Liabilities

    

Accounts Payable

   $ 39,427      $ 48,653   

Accrued Payroll and Fringe Benefits

     16,457        20,035   

Deferred Revenue

     11,906        15,251   

Accrued Claims and Insurance Premiums

     12,396        13,823   

Accrued Interest

     13,540        11,708   

Customer Deposits

     —          1,165   

Other Liabilities

     50,748        29,104   
  

 

 

   

 

 

 

Total Current Liabilities

     144,474        139,739   

Long Term Debt

     435,718        384,225   

Pension and Post Retirement Liabilities

     77,761        67,531   

Deferred Tax Liability

     182,014        178,602   

Other Long Term Liabilities

     32,216        46,335   
  

 

 

   

 

 

 

Total Liabilities

     872,183        816,432   
  

 

 

   

 

 

 
SHAREHOLDER’S EQUITY     

Other Capital

     423,977        424,932   

Retained Deficit

     (60     (20,826

Accumulated Other Comprehensive Loss

     (33,534     (25,159
  

 

 

   

 

 

 

Total Stockholder’s Equity

     390,383        378,947   
  

 

 

   

 

 

 

Total Liabilities and Stockholder’s Equity

   $ 1,262,566      $ 1,195,379   
  

 

 

   

 

 

 


COMMERCIAL BARGE LINE COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

 

     CBL Successor              CBL Predecessor  
     Year Ended     Year Ended     December 22 to              January 1 to  
     December 31,     December 31,     December 31,              December 21,  
     2012     2011     2010              2010  
     (Unaudited)                             

OPERATING ACTIVITIES

             

Net Income (Loss)

   $ 20,766      $ (14,191   $ (6,635        $ 3,750   

Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:

             

Depreciation and Amortization

     101,351        109,018        2,860             45,253   

Debt Retirement Costs

     —          —          —               8,701   

Debt Issuance Cost Amortization

     (2,365     (2,624     (76          5,162   

Deferred Taxes

     (51     (14,408     (1,600          27,644   

Gain on Property Dispositions

     (9,040     (2,048     —               (9,019

Contribution to Pension Plan

     (7,330     (8,831     —               —     

Share-Based Compensation

     131        2,319        41             7,423   

Gain on Insurance Claim

     (11,442     —          —               —     

Other Operating Activities

     (9,196     (4,973     59             (585

Changes in Operating Assets and Liabilities

     39,785        (1,045     13,383             (32,957
  

 

 

   

 

 

   

 

 

        

 

 

 

Net Cash Provided by Operating Activities

     122,609        63,217        8,032             55,372   
  

 

 

   

 

 

   

 

 

        

 

 

 

INVESTING ACTIVITIES

             

Property Additions

     (242,968     (70,414     —               (57,798

Impact of Barge Scrapping Operations

     34,565        6,556        —               7,753   

Proceeds from Property Dispositions

     18,734        3,860        —               7,337   

Proceeds from Settlement Insurance Claim

     14,450        —          —               —     

Proceeds from Sale of Elliott Bay

     —          1,629        —               —     

Other Investing Activities

     (836     (7,397     (1,735          3,513   
  

 

 

   

 

 

   

 

 

        

 

 

 

Net Cash Used in Investing Activities

     (176,055     (65,766     (1,735          (39,195
  

 

 

   

 

 

   

 

 

        

 

 

 

FINANCING ACTIVITIES

             

Revolving Credit Facility Borrowings

     256,551        245,649        500             169,204   

Revolving Credit Facility Repayments

     (199,501     (240,880     (19,394          (154,518

Bank Overdrafts on Operating Accounts

     2,022        2,963        (9,090          6,356   

Debt Issuance/Refinancing Costs

     (360     (323     —               (15,402

Short Term Debt Repayments

     (2,293     —          —               —     

Dividends Paid

     (978     (7,842     —               —     

Excess Tax Benefit of Share-based Compensation

     23        213        2,926             (15

Other Financing Activities

     —          —          —               (532
  

 

 

   

 

 

   

 

 

        

 

 

 

Net Cash Provided by (Used in) Financing Activities

     55,464        (220     (25,058          5,093   
  

 

 

   

 

 

   

 

 

        

 

 

 

Net Increase (Decrease) in Cash and Cash Equivalents

     2,018        (2,769     (18,761          21,270   

Cash and Cash Equivalents at Beginning of Period

     938        3,707        22,468             1,198   
  

 

 

   

 

 

   

 

 

        

 

 

 

Cash and Cash Equivalents at End of Period

   $ 2,956      $ 938      $ 3,707           $ 22,468   
  

 

 

   

 

 

   

 

 

        

 

 

 


COMMERCIAL BARGE LINE COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS SUPPLEMENTAL INFORMATION

(In thousands)

 

     CBL Successor              CBL Predecessor  
     Year Ended     Year Ended     December 22 to              January 1 to  
     December 31,     December 31,     December 31,              December 21,  
     2012     2011     2010              2010  
     (Unaudited)                             

Changes in Operating Assets and Liabilities:

             

Accounts Receivable

     10,509        (4,715     1,661             (8,896

Inventory

     11,553        (11,649     1,802             (9,850

Other Current Assets

     16,225        16,757        5,070             (20,267

Accounts Payable

     (11,248     1,035        2,593             10,759   

Accrued Interest

     1,832        41        881             (2,246

Other Current Liabilities

     10,914        (2,514     1,376             (2,457
  

 

 

   

 

 

   

 

 

        

 

 

 

Total Changes in Operating Assets and Liabilities

     39,785        (1,045     13,383             (32,957
  

 

 

   

 

 

   

 

 

        

 

 

 

Cash Paid for:

             

Interest Paid

   $ 30,253      $ 31,149      $ —             $ 32,852   

Tax Refunds Received - Net

     (6     (11,111     —               (4,859


COMMERCIAL BARGE LINE COMPANY

INCOME FROM CONTINUING OPERATIONS TO ADJUSTED EBITDAR FROM CONTINUING OPERATIONS RECONCILIATION

(In thousands)

(Unaudited)

 

     Quarter Ended Dec. 31,     Year Ended Dec. 31,  
     2012     2011     2012     2011  

Net Income (Loss) from Continuing Operations

   $ 9,666      $ 9,861      $ 20,740      $ (14,680

Adjustments from Continuing Operations:

        

Interest Income

     (14     (1     (19     (163

Interest Expense

     8,093        7,318        31,278        29,963   

Depreciation and Amortization

     20,998        26,924        101,351        108,944   

Long-term Boat and Barge Rents

     3,791        3,892        15,383        15,442   

Taxes

     3,327        6,174        9,986        (10,610
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDAR from Continuing Operations

     45,861        54,168        178,719        128,896   

Other Non-cash or Non-comparable Charges Included in Net Income:

        

Share Based Compensation

   $ 26      $ 444      $ 260      $ 5,030   

Other restructuring/acquisition-related costs and consulting

     (272     3,120        3,315        16,162   

Purchase accounting impact on boat/barge gains

     1,252        2,127        29,563        5,815   

Gain on excess boat sales

     (2,297     —          (13,240     —     

Insurance gain on 2011 flood claims

     —          —          (11,442     —     

Drought, flood and other costs

     18,193        408        44,907        18,351   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total non-comparable/non-cash charges

   $ 16,902      $ 6,099      $ 53,363      $ 45,358   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDAR from Continuing Operations

   $ 62,763      $ 60,267      $ 232,082      $ 174,254   
  

 

 

   

 

 

   

 

 

   

 

 

 

Management considers EBITDAR 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. EBITDAR provides us with an understanding of one aspect of earnings before the impact of investing and financing transactions and income taxes. EBITDAR 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”). EBITDAR excludes components that are significant in understanding and assessing our results of operations and cash flows. In addition, EBITDAR is not a term defined by GAAP and as a result our measure of EBITDAR might not be comparable to similarly titled measures used by other companies.

However, the Company believes that EBITDAR 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.


COMMERCIAL BARGE LINE COMPANY

TRANSPORTATION SEGMENT

INCOME FROM CONTINUING OPERATIONS TO ADJUSTED EBITDAR FROM CONTINUING OPERATIONS RECONCILIATION

(In thousands)

(Unaudited)

 

     Quarter Ended Dec. 31,     Year Ended Dec. 31,  
     2012     2011     2012     2011  

Income (Loss) from Continuing Operations

   $ 6,620      $ 7,547      $ 11,415      $ (16,862

Adjustments from Continuing Operations:

        

Interest Income

     (14     (1     (19     (163

Interest Expense

     8,093        7,318        31,278        29,963   

Depreciation and Amortization

     20,328        24,944        96,347        101,016   

Long-term Boat and Barge Rents

     3,791        3,892        15,383        15,442   

Taxes

     3,327        6,174        9,986        (10,610
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDAR from Continuing Operations

     42,145        49,874        164,390        118,786   

Other Non-cash or Non-comparable Charges Included in Net Income:

        

Share Based Compensation

   $ 26      $ 444      $ 260      $ 5,030   

Other restructuring/acquisition-related costs and consulting

     (272     3,120        3,315        15,345   

Purchase accounting impact on boat/barge gains

     1,251        2,127        29,562        5,815   

Gain on excess boat sales

     (2,297     —          (13,240     —     

Insurance gain on 2011 flood claims

     —          —          (11,442     —     

Drought, flood and other costs

     17,227        —          43,941        15,994   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total non-comparable/non-cash charges

   $ 15,935      $ 5,691      $ 52,396      $ 42,184   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDAR from Continuing Operations

   $ 58,080      $ 55,565      $ 216,786      $ 160,970   
  

 

 

   

 

 

   

 

 

   

 

 

 

Management considers EBITDAR 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. EBITDAR provides us with an understanding of one aspect of earnings before the impact of investing and financing transactions and income taxes. EBITDAR 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”). EBITDAR excludes components that are significant in understanding and assessing our results of operations and cash flows. In addition, EBITDAR is not a term defined by GAAP and as a result our measure of EBITDAR might not be comparable to similarly titled measures used by other companies.

However, the Company believes that EBITDAR 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.


COMMERCIAL BARGE LINE COMPANY

MANUFACTURING SEGMENT

INCOME FROM CONTINUING OPERATIONS TO ADJUSTED EBITDAR FROM CONTINUING OPERATIONS RECONCILIATION

(In thousands)

(Unaudited)

 

     Quarter Ended Dec. 31,      Year Ended Dec. 31,  
     2012      2011      2012      2011  

Income (Loss) from Continuing Operations

   $ 3,046       $ 2,317       $ 9,325       $ 2,187   

Adjustments from Continuing Operations:

           

Depreciation and Amortization

     670         1,980         5,004         7,928   
  

 

 

    

 

 

    

 

 

    

 

 

 

EBITDAR from Continuing Operations

     3,716         4,297         14,329         10,115   
  

 

 

    

 

 

    

 

 

    

 

 

 

Other restructuring/acquisition-related costs and consulting

   $ —         $ —         $ —         $ 817   

Purchase accounting impact on boat/barge gains

     1         —           1         —     

Drought, flood and other costs

     966         408         966         2,357   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total non-comparable/non-cash charges

   $ 967       $ 408       $ 967       $ 3,174   
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDAR from Continuing Operations

   $ 4,683       $ 4,705       $ 15,296       $ 13,289   
  

 

 

    

 

 

    

 

 

    

 

 

 

Management considers EBITDAR 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. EBITDAR provides us with an understanding of one aspect of earnings before the impact of investing and financing transactions and income taxes. EBITDAR 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”). EBITDAR excludes components that are significant in understanding and assessing our results of operations and cash flows. In addition, EBITDAR is not a term defined by GAAP and as a result our measure of EBITDAR might not be comparable to similarly titled measures used by other companies.

However, the Company believes that EBITDAR 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.


COMMERCIAL BARGE LINE COMPANY

Statement of Operating Income by Reportable Segment

(In thousands)

(Unaudited)

 

     Reportable Segments      Intersegment        
     Transportation     Manufacturing      Elimination     Total  

Successor Company

         

Three Months ended December 31, 2012

         

Total revenue

   $ 174,193      $ 56,226       $ (22,555   $ 207,864   

Intersegment revenues

     72        22,483         (22,555     —     
  

 

 

   

 

 

    

 

 

   

 

 

 

Revenue from external customers

     174,121        33,743         —          207,864   

Operating expense

         

Materials, supplies and other

     46,764        —           —          46,764   

Rent

     6,585        —           —          6,585   

Labor and fringe benefits

     28,348        —           —          28,348   

Fuel

     42,738        —           —          42,738   

Depreciation and amortization

     20,328        —           —          20,328   

Taxes, other than income taxes

     2,771        —           —          2,771   

Gain on disposition of equipment

     488        —           —          488   

Cost of goods sold

     —          30,096         —          30,096   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total cost of sales

     148,022        30,096         —          178,118   

Selling, general & administrative

     8,290        750         —          9,040   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total operating expenses

     156,312        30,846         —          187,158   
  

 

 

   

 

 

    

 

 

   

 

 

 

Operating Income

   $ 17,809      $ 2,897       $ —        $ 20,706   
  

 

 

   

 

 

    

 

 

   

 

 

 

Three Months ended December 31, 2011

         

Total revenue

   $ 200,570      $ 49,989       $ (6,055   $ 244,504   

Intersegment revenues

     268        5,787         (6,055     —     
  

 

 

   

 

 

    

 

 

   

 

 

 

Revenue from external customers

     200,302        44,202         —          244,504   

Operating expense

         

Materials, supplies and other

     58,006        —           —          58,006   

Rent

     6,932        —           —          6,932   

Labor and fringe benefits

     30,011        —           —          30,011   

Fuel

     44,688        —           —          44,688   

Depreciation and amortization

     24,944        —           —          24,944   

Taxes, other than income taxes

     3,137        —           —          3,137   

Gain on disposition of equipment

     (754     —           —          (754

Cost of goods sold

     —          41,494         —          41,494   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total cost of sales

     166,964        41,494         —          208,458   

Selling, general & administrative

     12,650        479         —          13,129   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total operating expenses

     179,614        41,973         —          221,587   
  

 

 

   

 

 

    

 

 

   

 

 

 

Operating Income

   $ 20,688      $ 2,229       $ —        $ 22,917   
  

 

 

   

 

 

    

 

 

   

 

 

 


COMMERCIAL BARGE LINE COMPANY

Statement of Operating Income by Reportable Segment

(In thousands)

(Unaudited)

 

     Reportable Segments      Intersegment        
     Transportation     Manufacturing      Elimination     Total  

Successor Company

         

Year ended December 31, 2012

         

Total revenue

   $ 687,682      $ 209,459       $ (85,584   $ 811,557   

Intersegment revenues

     504        85,080         (85,584     —     
  

 

 

   

 

 

    

 

 

   

 

 

 

Revenue from external customers

     687,178        124,379         —          811,557   

Operating expense

         

Materials, supplies and other

     192,973        —           —          192,973   

Rent

     26,658        —           —          26,658   

Labor and fringe benefits

     113,432        —           —          113,432   

Fuel

     163,698        —           —          163,698   

Depreciation and amortization

     96,347        —           —          96,347   

Taxes, other than income taxes

     11,316        —           —          11,316   

Gain on disposition of equipment

     (9,013     —           —          (9,013

Cost of goods sold

     —          111,343         —          111,343   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total cost of sales

     595,411        111,343         —          706,754   

Selling, general & administrative

     39,881        3,782         —          43,663   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total operating expenses

     635,292        115,125         —          750,417   
  

 

 

   

 

 

    

 

 

   

 

 

 

Operating Income

   $ 51,886      $ 9,254       $ —        $ 61,140   
  

 

 

   

 

 

    

 

 

   

 

 

 

Year ended December 31, 2011

         

Total revenue

   $ 722,244      $ 171,477       $ (40,784   $ 852,937   

Intersegment revenues

     1,149        39,635         (40,784     —     
  

 

 

   

 

 

    

 

 

   

 

 

 

Revenue from external customers

     721,095        131,842         —          852,937   

Operating expense

         

Materials, supplies and other

     239,653        —           —          239,653   

Rent

     27,856        —           —          27,856   

Labor and fringe benefits

     114,812        —           —          114,812   

Fuel

     171,607        —           —          171,607   

Depreciation and amortization

     101,016        —           —          101,016   

Taxes, other than income taxes

     12,344        —           —          12,344   

Gain on disposition of equipment

     (2,022     —           —          (2,022

Cost of goods sold

     —          127,871         —          127,871   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total cost of sales

     665,266        127,871         —          793,137   

Selling, general & administrative

     54,155        1,940         —          56,095   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total operating expenses

     719,421        129,811         —          849,232   
  

 

 

   

 

 

    

 

 

   

 

 

 

Operating Income

   $ 1,674      $ 2,031       $ —        $ 3,705