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  4. Rand Logistics reports financial results from fiscal year 2Q17

Rand Logistics reports financial results from fiscal year 2Q17

Published by , Editorial Assistant
Dry Bulk,

Quarter ended September 30, 2016 vs quarter ended 30 September, 2015, financial results.
  • Freight and other related revenue from company operated vessels (which excludes fuel and other surcharges) decreased US$6.3 million, or 14.4%, to US$37.5 million during the three-month period compared to US$43.8 million in the year ago period.
  • Total Sailing Days was 1185 compared to 1278 in the prior year period, primarily as a result of operating two fewer vessels in the quarter.
  • Delay Days increased to 73 from 68. Delay Days as a percentage of total Sailing Days was 6.2% compared to 5.3% in the same period last year.
  • Freight and related revenue per Sailing Day decreased US$2639, or 7.7%, to US$31 661 compared to US$34 300 per Sailing Day in the year ago period.
  • Vessel operating expenses decreased US$8.0 million, or 26.7%, to US$22.0 million compared to US$30.0 million during the year ago period. Vessel operating expenses per Sailing Day decreased US$4,909, or 20.9%, to US$18,589 from US$23 498 during the year ago period.
  • Vessel margin per day decreased US$669, or 4.4%, from US$15 110 in the prior year period to US$14 441 this quarter.
  • Debt reduction equalled US$10.7 million during the quarter with long term debt, before deferred financing costs, declining from US$207.7 million as of June 30, 2016 to $197.0 million as of 30 September, 2016.
  • EBITDA decreased US$2.3 million, or 14.3%, to US$13.8 million from US$16.1 million during the prior year period.

    • Six months ended 30 September, 2016 vs six months ended 30 September, 2015 financial results

  • Freight and other related revenue (which excludes fuel and other surcharges) decreased US$12.2 million, or 14.7%, to US$70.6 million compared to US$82.8 million during the prior year period.
  • Total sailing days was 2154 compared to 2506 in the prior year period.
  • Delay days decreased to 134 from 177. Delay days as a percentage of total sailing days was 6.3% compared to 7.1% in the same period last year.
  • Freight and related revenue per Sailing Day decreased US$255, or 0.8%, to US$32 787 compared to US$33 042 during the prior six-month period.
  • Vessel operating expenses decreased US$15.7 million, or 27.7%, to US$40.9 million compared to US$56.6 million during the year ago period. Vessel operating expenses per Sailing Day decreased US$3606, or 16.0%, to US$18 974 from US$22 580 in the prior year period.
  • Vessel margin per day increased US$534, or 3.8%, from US$13 905 in the prior year period to US$14 439 in the six months ended 30 September, 2016.
  • EBITDA decreased US$3.1 million, or 11.0%, to US$25.0 million from US$28.1 million during the prior year period.

    • Management commented:

    “Our results in the second quarter of fiscal year 2017 reflected an unexpected decline in demand from our aggregates customers, particularly as it related to materials for use in public infrastructure projects,” commented Ed Levy, President and CEO of Rand. “According to the Lake Carriers’ Association, overall lakes-wide stone demand declined 13.9% versus the comparable quarter last year. Our stone tonnage declined by 12.1%. This, combined with lower salt tonnage due to higher than normal inventories resulting from last year’s unusually dry and mild winter in the Great Lakes region, resulted in inefficiencies in our trade network and caused our vessel margin per day to decline by approximately 4.4% versus the comparable quarter last year.”

    “To address market conditions, we elected to reduce capacity by approximately 28 sailing days in July, which represented 2.4% of total sailing days in the quarter,” added Mr. Levy. “Beginning in mid-August, we began to experience a steady improvement in demand for certain of the commodities that we carry. In addition, we were awarded several new pieces of business that were not part of our annual forecast, which resulted in our reintroducing one of our vessels back into service in mid-September. Based on our October results, as well as our book of business for the remainder of the sailing season and assuming normal weather conditions, we expect to sail approximately 3500 days, an increase from the initial projection of approximately 3405 days. We also anticipate that our earnings for the quarter ended 31 December, 2016 will exceed the same quarter last year. Given our current business conditions, we believe we will be sailing certain of our vessels in January 2017.”

    Read the article online at: https://www.drybulkmagazine.com/shipping/10012017/rand-logistics-reports-financial-results-from-fiscal-year-2q17/

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