JEFFERSONVILLE, Ind., Feb. 6 /PRNewswire-FirstCall/ -- American Commercial Lines Inc. ("ACL" or the "Company") today announced results for the fourth quarter and year ended December 31, 2006.
Revenues for the quarter were $265.9 million, an 18% increase compared with $225.6 million for the fourth quarter of 2005. Net income for the quarter was $35.0 million or $0.56 per diluted share (all per share data has been adjusted for the post-split share count), a 307% increase compared to $8.6 million or $0.14 per diluted share for the fourth quarter of 2005. Results for the fourth quarter of 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 related to the redemption of $10 million in face value of its 9 1/2% Senior Notes. Results for the fourth quarter of 2005 included charges for the early retirement of debt of $7.3 million (net of tax) or $0.12 per diluted share.
Revenues for the full year 2006 were $942.6 million, a 32% increase compared with the $714.9 million for the full year of 2005. Net income for the full year was $92.3 million or $1.47 per diluted share, a 681% increase compared to net income for the full year of 2005 of $11.8 million, or $0.24 per diluted share.
Mark R. Holden, President and Chief Executive Officer, stated: "This was a very good year for ACL. Revenues exceeded the Company's previous record high by 20% while EBITDA surpassed the previous record by 56%. Equally as important, our shareholders had a very good year as ACL stock increased in value by 116%, ranking it among the top 3% of approximately 5,100 companies that were listed on the NYSE and NASDAQ throughout 2006. Our employees also participated in the success of the Company as our annual cash bonus award totaled approximately $17 million, a 52% increase over the award for 2005. While we are pleased with our accomplishments during 2006, we are now positioned for the next phase of our strategy, growth. We have now begun to plot a course of organic growth as well as strategic moves to grow inorganically. Our strategic course has been developed over the past two years and is one in which we have been investing. It is now time to execute the balance of our strategy."
The transportation segment's revenues increased 26% over the prior year to $216.8 million in the fourth quarter, driven by average fuel neutral rate increases of 15% on the dry freight business and 11% on the liquid freight business compared to the fourth quarter of 2005. For the full year revenues increased 33% over the prior year to $781.3 million. Fuel neutral freight rates for the full year were up, on average, 24% and 12% respectively on the dry and liquid businesses. Additionally, the Company renewed $140 million of contracts that matured during 2006 for the benefit of 2007 and beyond at an average rate increase in excess of 20%. Increased revenues were also driven by year-over-year volume gains. In the fourth quarter, ACL moved approximately 11.4 billion ton-miles compared to 10.7 billion ton-miles in the same period of the prior year, an increase of 7.1% with 3% fewer barges. For the full year, ACL moved approximately 45.1 billion ton-miles of cargo compared to 42.7 billion ton-miles transported in 2005, an increase of 5.5% with 4% fewer barges.
The manufacturing segment's revenues, inclusive of barges manufactured for internal use by ACL, were $58.0 million in the fourth quarter compared to $53.2 million during the same period last year. Due to the higher level of internal builds in the fourth quarter of 2006, external revenues were down 10% from $52.6 million in the same period of the prior year to $47.4 million. For the full year, manufacturing revenues, inclusive of barges manufactured for the transportation segment, were $211.4 million, or 52.1% higher than prior year. Of the annual manufacturing revenues, $56.2 million were for internal sales to the transportation segment. Net of the internal builds, external revenues increased 28.5% to $155.2 million compared to $120.7 million in 2005.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) for the fourth quarter of 2006 were $70.0 million with an EBITDA margin of 25.9% compared to $42.9 million for the fourth quarter of 2005 for an EBITDA margin of 18.2%. For the full year 2006, EBITDA was $211.8 million for an EBITDA margin of 22.0% compared to $110.9 million for the full year 2005, an EBITDA margin of 15.0%. The attachment to this press release reconciles net income to EBITDA.
ACL also reduced debt by $80.5 million during the year, from $200 million at the end of 2005 to $119.5 million at the end of 2006. Debt reduction for the full year 2006 included repayment of $70 million in bank debt and early retirement of $10.5 million of the 9 1/2% Senior Notes.
Also, on January 16, 2007, the Company's Board of Directors approved a two-for-one stock split of the Company's common stock, par value $0.01 per share, in the form of a stock dividend. Stockholders of record on February 6, 2007, will receive one additional share of common stock for each share of common stock held on that day. The new shares will be distributed on February 20, 2007. All per share amounts reflect the effect of this stock split.
American Commercial Lines will conduct a conference call to review and discuss its fourth quarter and year end financial results on Wednesday, February 7, 2007, at 10:00 a.m. eastern time. The telephone numbers to access the ACL Conference Call are: Domestic (866) 362-4829; International (617) 597- 5346; and the Participant Passcode is 49713398. The call may also be accessed live on the Company's internet web site at http://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 8, 2007.
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 $940 million in revenues and approximately 2,750 employees as of December 31, 2006. For more information about ACL generally, visit http://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 the Form 10-K for the year ended December 31, 2005 and the most recently filed Form 10-Q. 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 Year Ended
December 31, December 31,
2006 2005 (1) 2006 2005 (1)
Revenues
Transportation
Services $218,528 $172,937 $787,348 $594,200
Manufacturing 47,370 52,639 155,204 120,741
Revenues 265,898 225,576 942,552 714,941
Cost of Sales
Transportation
Services 151,728 138,609 582,465 503,923
Manufacturing 42,464 49,110 141,589 112,218
Cost of Sales 194,192 187,719 724,054 616,141
Gross Profit 71,706 37,857 218,498 98,800
Selling, General and
Administrative Expenses 19,424 12,424 66,280 47,654
Operating Income 52,282 25,433 152,218 51,146
Other Expense (Income)
Interest Expense 3,834 5,967 18,354 31,590
Debt Retirement
Expenses 1,387 11,732 1,437 11,732
Other, Net (1,737) (1,372) (3,993) (6,324)
Other Expenses 3,484 16,327 15,798 36,998
Income from Continuing
Operations before
Income Taxes 48,798 9,106 136,420 14,148
Income Taxes 16,804 1,839 49,822 4,144
Income from Continuing
Operations 31,994 7,267 86,598 10,004
Discontinued Operations,
Net of Income Taxes 3,000 1,335 5,654 1,809
Net Income $34,994 $8,602 $92,252 $11,813
Basic earnings per common
share (2):
Income from continuing
operations $0.52 $0.12 $1.43 $0.21
Income from discontinued
operations, net of tax 0.05 0.02 0.09 0.04
Basic earnings per common
share $0.57 $0.14 $1.52 $0.25
Earnings per common share
- assuming dilution (2):
Income from continuing
operations $0.51 $0.12 $1.38 $0.20
Income from discontinued
operations, net of tax 0.05 0.02 0.09 0.04
Earnings per common share
- assuming dilution $0.56 $0.14 $1.47 $0.24
Weighted Average Shares
Outstanding (2):
Basic 60,952,370 59,331,684 60,742,980 47,594,218
Diluted 63,007,962 61,359,500 62,800,804 49,247,874
(1) Restated reflecting International Operations of the Company as
discontinued operations
(2) Gives effect to the announced two-for-one stock split to shareholders
of record 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,
2006 2005 (1)
ASSETS
Current Assets
Cash and Cash Equivalents $5,113 $13,959
Accounts Receivable, Net 102,228 96,526
Inventory 61,504 44,976
Deferred Tax Asset 2,173 4,644
Assets Held for Sale 406 1,042
Other Current Assets 25,579 15,745
Total Current Assets 197,003 176,892
Properties-Net 455,710 425,741
Investment in Equity Investees 3,527 5,532
Other Assets 14,581 15,119
Total Assets $670,821 $623,284
LIABILITIES
Current Liabilities
Accounts Payable $53,607 $47,517
Accrued Payroll and Fringe
Benefits 28,267 22,303
Deferred Revenue 16,803 16,631
Accrued Claims and Insurance
Premiums 15,754 13,361
Accrued Interest 4,466 5,179
Customer Deposits 9,145 1,147
Other Liabilities 24,710 24,550
Total Current Liabilities 152,752 130,688
Long Term Debt 119,500 200,000
Pension Liability 16,026 17,867
Deferred Tax Liability 14,014 4,644
Other Long Term Liabilities 9,876 16,384
Total Liabilities 312,168 369,583
STOCKHOLDERS' EQUITY
Common stock; authorized 250,000,000
shares at $.01 par value;
61,883,556 shares issued and
outstanding as of December
31, 2006 619 614
Treasury Stock 172,320 shares at
December 31, 2006 (3,207) -
Other Capital 259,409 250,623
Unearned Compensation - (3,495)
Retained Earnings 104,065 11,813
Accumulated Other Comprehensive
Loss (2,233) (5,854)
Total Stockholders'
Equity 358,653 253,701
Total Liabilities and
Stockholders' Equity $670,821 $623,284
(1) The Condensed Consolidated Balance Sheet at December 31, 2005 has
been derived from the audited consolidated financial statements at
that date, but does not include all the information and footnotes
required by generally accepted accounting principles for a complete
set of financial statements
AMERICAN COMMERCIAL LINES INC.
NET INCOME TO EBITDA RECONCILIATION
(Dollars in thousands)
(Unaudited)
Quarter Ended Dec. 31, Year Ended Dec. 31,
2006 2005 2006 2005
Net Income from Continuing
Operations $31,994 $7,267 $86,598 $10,004
Discontinued Operations, Net of
Income Taxes 3,000 1,335 5,654 1,809
Consolidated Net Income $34,994 $8,602 $92,252 $11,813
Adjustments from Continuing
Operations:
Interest Income (20) (271) (46) (545)
Interest Expense 5,221 17,698 19,791 43,322
Depreciation and Amortization 12,075 11,805 47,378 47,061
Taxes 16,804 1,839 49,822 4,144
Adjustments from Discontinued
Operations:
Interest Income (68) (113) (651) (492)
Depreciation and Amortization - 580 1,428 2,060
Taxes 956 2,802 1,837 3,586
EBITDA from Continuing Operations 66,074 38,338 203,543 103,986
EBITDA from Discontinued Operations 3,888 4,604 8,268 6,963
Consolidated EBITDA $69,962 $42,942 $211,811 $110,949
Selected Segment EBITDA
Calculations:
Transportation Net Income $28,163 $4,824 $78,162 $4,026
Interest Income (20) (272) (46) (545)
Interest Expense 5,221 17,699 19,791 43,322
Depreciation and Amortization 11,281 11,084 44,399 44,239
Taxes 16,804 1,839 49,822 4,144
Transportation EBITDA $61,449 $35,174 $192,128 $95,186
Manufacturing Net Income $5,696 $2,623 $19,116 $7,165
Interest Income - - - -
Interest Expense - - - -
Depreciation and Amortization 522 465 1,889 1,806
Taxes - - - -
Total Manufacturing EBITDA 6,218 3,088 21,005 8,971
Intersegment Profit (2,037) 31 (10,882) (1,446)
External Manufacturing EBITDA $4,181 $3,119 $10,123 $7,525
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)
Reportable Segments
Transpor- Manufac- All Intersegment
tation turing Other(1) Elimination Total
Quarter ended
December 31, 2006
Total Revenue $217,383 $58,045 $1,712 $(11,242) $265,898
Intersegment Revenue 551 10,675 16 (11,242) -
Revenue from External
Customers 216,832 47,370 1,696 - 265,898
Operating Expense
Materials, Supplies
and Other 66,521 - 576 - 67,097
Rent 5,869 - 24 - 5,893
Labor and Fringe
Benefits 23,875 - 422 - 24,297
Fuel 38,405 - - - 38,405
Depreciation and
Amortization 11,281 - 272 - 11,553
Taxes, Other Than
Income Taxes 4,476 - 7 - 4,483
Cost of Goods Sold - 42,464 - - 42,464
Total Cost of Sales 150,427 42,464 1,301 - 194,192
Selling, General &
Administrative 17,607 1,594 223 - 19,424
Total Operating
Expenses 168,034 44,058 1,524 - 213,616
Operating Income $48,798 $3,312 $172 $- $52,282
Quarter ended
December 31, 2005
Total Revenue $171,913 $53,165 $1,259 $(761) $225,576
Intersegment Revenue 204 526 31 (761) -
Revenue from External
Customers 171,709 52,639 1,228 - 225,576
Operating Expense
Materials, Supplies
and Other 56,725 - 571 - 57,296
Rent 5,102 - 25 - 5,127
Labor and Fringe
Benefits 20,788 - 446 - 21,234
Fuel 39,582 - - - 39,582
Depreciation and
Amortization 11,084 - 256 - 11,340
Taxes, Other Than
Income Taxes 4,016 - 15 - 4,031
Cost of Goods Sold - 49,109 - - 49,109
Total Cost of
Sales 137,297 49,109 1,313 - 187,719
Selling, General &
Administrative 11,446 793 185 - 12,424
Total Operating
Expenses 148,743 49,902 1,498 - 200,143
Operating Income
(Loss) $22,966 $2,737 $(270) $- $25,433
(1) Financial data below the reporting thresholds is attributable to a
segment that operates terminals along the U.S. inland waterways.
AMERICAN COMMERCIAL LINES INC.
Statement of Operating Income by Reportable Segment
(Dollars in thousands)
(Unaudited)
Reportable Segments
Transpor- Manufac- All Intersegment
tation turing Other(1) Elimination Total
Year ended
December 31, 2006
Total Revenue $782,319 $211,367 $6,159 $(57,293) $942,552
Intersegment Revenue 1,061 56,163 69 (57,293) -
Revenue from External
Customers 781,258 155,204 6,090 - 942,552
Operating Expense
Materials, Supplies
and Other 247,442 - 2,058 - 249,500
Rent 22,345 - 100 - 22,445
Labor and Fringe
Benefits 88,654 - 1,640 - 90,294
Fuel 157,070 - - - 157,070
Depreciation and
Amortization 44,399 - 1,090 - 45,489
Taxes, Other Than
Income Taxes 17,498 - 169 - 17,667
Cost of Goods Sold - 141,589 - - 141,589
Total Cost of Sales 577,408 141,589 5,057 - 724,054
Selling, General &
Administrative 59,766 5,647 867 - 66,280
Total Operating
Expenses 637,174 147,236 5,924 - 790,334
Operating Income $144,084 $7,968 $166 $- $152,218
Year ended
December 31, 2005
Total Revenue $588,733 $138,985 $6,188 $(18,965) $714,941
Intersegment Revenue 673 18,244 48 (18,965) -
Revenue from External
Customers 588,060 120,741 6,140 - 714,941
Operating Expense
Materials, Supplies
and Other 210,418 - 2,114 - 212,532
Rent 19,802 - 108 - 19,910
Labor and Fringe
Benefits 80,817 - 1,724 - 82,541
Fuel 126,893 - - - 126,893
Depreciation and
Amortization 44,239 - 1,016 - 45,255
Taxes, Other Than
Income Taxes 16,601 - 192 - 16,793
Cost of Goods Sold - 112,217 - - 112,217
Total Cost of Sales 498,770 112,217 5,154 - 616,141
Selling, General &
Administrative 44,097 2,767 790 - 47,654
Total Operating
Expenses 542,867 114,984 5,944 - 663,795
Operating Income $45,193 $5,757 $196 $- $51,146
(1) Financial data below the reporting thresholds is attributable to a
segment that operates terminals along the U.S. inland waterways.
AMERICAN COMMERCIAL LINES INC.
SELECTED FINANCIAL AND NONFINANCIAL DATA
(Dollars in thousands except where noted)
(Unaudited)
Quarter Ended Year Ended
Dec. 31, Dec. 31,
2006 2005 2006 2005
Consolidated EBITDA $69,962 $42,942 $211,811 $110,949
Transportation Revenue and EBITDA
Revenue $216,832 $171,709 $781,258 $588,060
EBITDA 61,449 35,174 192,128 95,186
Manufacturing Revenue and EBITDA
(External and Internal)
Revenue $58,045 $53,165 $211,367 $138,985
EBITDA 6,218 3,088 21,005 8,971
Manufacturing External Revenue and
EBITDA
Revenue $47,370 $52,639 $155,204 $120,741
EBITDA 4,181 3,119 10,123 7,525
Average Domestic Barges Operated
Dry 2,720 2,810 2,721 2,832
Liquid 373 372 371 375
Total 3,093 3,182 3,092 3,207
Fuel Price (Average Dollars per
gallon) $1.88 $2.01 $1.96 $1.67
Capital Expenditures (including
software) $31,721 $21,550 $92,222 $49,444
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.