SOURCE: American Commercial Lines Inc.

American Commercial Lines Inc.

April 28, 2010 08:00 ET

American Commercial Lines Announces First Quarter 2010 Results

JEFFERSONVILLE, IN--(Marketwire - April 28, 2010) - American Commercial Lines Inc. (NASDAQ: ACLI) ("ACL" or the "Company") today announced results for the first quarter ended March 31, 2010. Revenues for the quarter were $148.3 million, a 23.0% decrease compared with $192.7 million for the first quarter of 2009. Transportation revenue declined by 13.2% and manufacturing revenue fell 67.5% on fewer units sold. The Company had a loss from continuing operations of $3.5 million or $0.27 per diluted share, compared to a loss from continuing operations of $4.5 million or $0.35 per diluted share for the first quarter of 2009. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) from continuing operations for the quarter was $15.1 million with an EBITDA margin of 10.2%, compared to $14.2 million for the first quarter of 2009 with an EBITDA margin of 7.4%. The attachment to this press release reconciles net income to EBITDA.

Results for the first quarter of 2009 included after-tax severance and Houston sales office closure expenses of $2.4 million or $0.19 per share and an after tax charge of $0.4 million or $0.03 per share related to a customer's bankruptcy filing.

Commenting on first quarter results, Michael P. Ryan, President and Chief Executive Officer, stated, "The difficult economic conditions continue to impact demand for our transportation services and our new barge manufacturing. The excess barge capacity which exists as a result of this lower demand continues to negatively impact pricing strength in our industry. Despite these factors, strong cost controls and higher gains from asset management actions increased our transportation segment's operating income by $6.2 million. Our heightened focus on safety, as well as early results of our strategic initiatives to improve the cost structure and the fundamentals of our business through realignment of personnel and the sale of non-essential assets are driving our positive year-over-year direction. Transportation SG&A costs decreased by $4.9 million due to lower salaries, benefits, claims and marketing spending in the current quarter and by an additional $4.7 million due to the non-comparable reorganization charges in 2009.

"Our manufacturing segment's operating income decreased by $3.9 million compared to the prior year driven by 25 weather-related lost production days and an increased focus on building dry barges for ACL to improve our transportation fleet. With the economic recovery beyond our control, we remain focused on improving our business fundamentals, aggressively controlling costs and pursuing our strategy of business mix improvement to prepare our Company to generate maximum financial returns when post recession transportation and manufacturing volumes return to our system."

Transportation Results

The transportation segment's revenues were $134.9 million in the first quarter of 2010 compared to $155.5 million in the first quarter of 2009, a decrease of $20.6 million or 13.2% over the first quarter of the prior year. Affreightment revenues decreased $12.0 million or 11.4% driven by a 16.5% decline in ton-mile volume, partially offset by 5.1% higher fuel-neutral pricing due to the improved mix of products transported. Higher margin liquid affreightment volumes increased 20.1% from the prior year and dry bulk volumes decreased by 6.1% due primarily to lower salt shipments. Lower margin grain and coal volumes decreased by 13.5% and 37.3%, respectively from the prior year. Total affreightment volume measured in ton-miles declined in the first quarter of 2010 to 7.5 billion compared to 8.9 billion in the same period of the prior year. Non-affreightment revenues decreased by $8.6 million or 17.2% primarily due to $4.6 million lower demurrage revenue and $3.9 million lower towing revenue. The average number of liquid barges in charter/day rate service decreased in the first quarter by 35 barges over the prior year quarter.

The transportation segment's operating income in the first quarter of 2010 was $2.8 million compared to a transportation segment operating loss in the first quarter of 2009 of $3.4 million. Included in the transportation segment 2009 first quarter operating income results are $4.0 million in SG&A costs for the 2009 salaried workforce reduction and the Houston sales office closure and $0.7 million related to the bankruptcy filing of a customer.

The improvement in the operating income between years was primarily attributable to the prior year non-comparable charges, other SG&A reductions, gains resulting from asset management actions and improved revenue mix. These were partially offset by the impact of lower overall revenue in relation to fixed and semi-variable expenses.

Manufacturing Results

Manufacturing revenues were $11.4 million in the first quarter of 2010 compared to $35.2 million in the first quarter of 2009. In the first quarter of 2010, Jeffboat, our manufacturing segment, sold three liquid tank barges and one ocean-going liquid tank barge and delivered 33 covered dry barges for internal use. In the first quarter of 2009, Jeffboat sold 11 liquid tank barges and delivered one liquid tank barge for internal use. Manufacturing operating margin was 2.1% or $0.2 million in the first quarter of 2010 compared to 11.7% or $4.1 million in the first quarter of 2009. The decrease in margin is primarily attributable to the significantly lower level of external production and lower margin contracts, reflective of reduced customer demand and competitive pricing pressure. Manufacturing productivity was also negatively impacted by weather with 12 more lost production days in 2010 than in 2009. The first quarter was not impacted by the labor strike at Jeffboat that began on April 2, 2010. The Company does not expect the strike to have a material impact to the Company's operations or financial results in 2010.

Cash Flow and Debt

Long term debt increased by $11.3 million in the quarter to $356.8 million at March 31, 2010 primarily due to the changes in working capital and the net cash used in investing activities in the quarter. Total availability under the Company's revolving facility was approximately $223 million at March 31, 2010.

During the first quarter the Company had $15.5 million of capital expenditures primarily related to $14 million in costs of new dry covered barges. The Company also generated $7.2 million in proceeds from asset management actions in the quarter, primarily from the sale of surplus boats. The Company generated $0.3 million in cash from operations during the quarter compared to a $25.1 million in the prior year. Approximately three-quarters of the current year decline in cash from operations were driven by unfavorable changes in working capital. The working capital changes were attributable to a difference in the timing of the payment of interest on our existing outstanding debt when compared to the prior year, higher inventory levels driven by our internal barge build program and weather-delayed delivery of several external tank barges combined with the impact of reduced other current liabilities.

First Quarter 2009 Earnings Conference Call

ACL will conduct a conference call to discuss the Company's first quarter 2010 earnings on April 28, 2010 at 10:00 a.m. Eastern time. ACL's live webcast, featuring a slide presentation, may be accessed at www.aclines.com. The telephone numbers to access the conference call are: Domestic 800-573-4754; International 617-224-4325; and the Participant Passcode is 12803984. 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 June 28, 2010. Following this date, the slide presentation will remain archived at www.aclines.com.

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 $850 million in revenues and approximately 2,570 employees as of December 31, 2009. For more information about American Commercial Lines Inc. visit 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 our report on Form 10-K. 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 STATEMENTS OF OPERATIONS
        (Dollars in thousands, except shares and per share amounts)
                                (Unaudited)

                                                    Quarter Ended March 31,
                                                    ----------------------
                                                       2010        2009
                                                    ----------  ----------

Revenues
     Transportation and Services                    $  136,854  $  157,471
     Manufacturing                                      11,442      35,234
                                                    ----------  ----------
          Revenues                                     148,296     192,705
                                                    ----------  ----------

Cost of Sales
     Transportation and Services                       123,052     140,066
     Manufacturing                                      10,532      30,436
                                                    ----------  ----------
          Cost of Sales                                133,584     170,502
                                                    ----------  ----------

Gross Profit                                            14,712      22,203

Selling, General  and Administrative Expenses           11,620      21,313

                                                    ----------  ----------
Operating Income                                         3,092         890
                                                    ----------  ----------

Other Expense (Income)
     Interest Expense                                    9,853       8,531
     Other, Net                                            (54)       (276)
                                                    ----------  ----------
          Other Expenses                                 9,799       8,255
                                                    ----------  ----------

Loss from Continuing Operations before Income Taxes     (6,707)     (7,365)

Income Tax Benefit                                      (3,227)     (2,891)
                                                    ----------  ----------

Loss from Continuing Operations                         (3,480)     (4,474)

Discontinued Operations, Net of  Tax                         -        (984)

                                                    ----------  ----------
Net Loss                                            $   (3,480) $   (5,458)
                                                    ==========  ==========

Basic loss per common share:
    Loss from continuing operations                 $    (0.27) $    (0.35)
    Loss from discontinued operations, net of tax            -       (0.08)
                                                    ----------  ----------
Basic loss per common share                         $    (0.27) $    (0.43)
                                                    ==========  ==========
Loss per common share - assuming dilution:
    Loss from continuing operations                 $    (0.27) $    (0.35)
    Loss from discontinued operations, net of tax            -       (0.08)
                                                    ----------  ----------
Loss per common share - assuming dilution           $    (0.27) $    (0.43)
                                                    ==========  ==========
Weighted Average Shares Outstanding:
Basic                                               12,761,816  12,687,820
Diluted                                             12,761,816  12,687,820





                      AMERICAN COMMERCIAL LINES INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS
        (Dollars in thousands, except shares and per share amounts)

                                                    March 31,  December 31,
                                                       2010      2009 (1)
                                                    ----------  ----------

                      ASSETS
Current Assets
     Cash and Cash Equivalents                      $    1,329  $    1,198
     Accounts Receivable, Net                           67,028      93,295
     Inventory                                          42,796      39,070
     Deferred Tax Asset                                  3,640       3,791
     Assets Held for Sale                                    -       3,531
     Prepaid and Other Current Assets                   22,718      23,879
                                                    ----------  ----------
        Total Current Assets                           137,511     164,764
Properties, Net                                        525,481     521,068
Investment in Equity Investees                           4,484       4,522
Other Assets                                            31,555      33,536
                                                    ----------  ----------
        Total Assets                                $  699,031  $  723,890
                                                    ==========  ==========

                    LIABILITIES
Current Liabilities
     Accounts Payable                               $   28,705  $   34,163
     Accrued Payroll and Fringe Benefits                11,486      18,283
     Deferred Revenue                                   13,201      13,928
     Accrued Claims and Insurance Premiums              12,459      16,947
     Accrued Interest                                    6,055      13,098
     Current Portion of Long Term Debt                     114         114
     Customer Deposits                                   1,000       1,309
     Other Liabilities                                  27,089      31,825
                                                    ----------  ----------
        Total Current Liabilities                      100,109     129,667
Long Term Debt                                         356,749     345,419
Pension and Post Retirement Liabilities                 31,967      31,514
Deferred Tax Liability                                  37,879      40,133
Other Long Term Liabilities                              6,385       6,567
                                                    ----------  ----------
        Total Liabilities                              533,089     553,300
                                                    ----------  ----------

               STOCKHOLDERS' EQUITY
Common stock; authorized 50,000,000 shares at $.01
 par value; 16,017,110 and 15,898,596 shares issued
 and outstanding as of March 31, 2010 and December
 31, 2009, respectively                                    160         159
Treasury Stock; 3,210,897 and 3,179,274 shares at
 March 31, 2010 and December 31, 2009, respectively   (314,049)   (313,328)
Other Capital                                          299,213     299,486
Retained Earnings                                      180,382     183,862
Accumulated Other Comprehensive Income                     236         411
                                                    ----------  ----------
             Total Stockholders' Equity                165,942     170,590
                                                    ----------  ----------
             Total Liabilities and Stockholders'
              Equity                                $  699,031  $  723,890
                                                    ==========  ==========

(1) The Consolidated Balance Sheet at December 31, 2009 has been derived
from the audited consolidated financial statements at that date, but does
not included all the information and footnotes required by generally
accepted accounting principles.




                      AMERICAN COMMERCIAL LINES INC.
                    NET INCOME TO EBITDA RECONCILIATION
                          (Dollars in thousands)
                                (Unaudited)

                                                          Quarter Ended
                                                            March 31,
                                                        ------------------
                                                          2010      2009
                                                        --------  --------

Net Loss from Continuing Operations                     $ (3,480) $ (4,474)
Discontinued Operations, Net of Income Taxes                   -      (984)
                                                        --------  --------
Consolidated Net Loss                                   $ (3,480) $ (5,458)
                                                        --------  --------
Adjustments from Continuing Operations:
   Interest Income                                            (1)       (6)
   Interest Expense                                        9,853     8,531
   Depreciation and Amortization                          11,999    13,084
   Taxes                                                  (3,227)   (2,891)
Adjustments from Discontinued Operations:
   Interest Income                                             -        (1)
   Interest Expense                                            -        10
   Depreciation and Amortization                               -       456
   Taxes                                                       -      (613)

EBITDA from Continuing Operations                         15,144    14,244
EBITDA from Discontinued Operations                            -    (1,132)
                                                        --------  --------
Consolidated EBITDA                                     $ 15,144  $ 13,112
                                                        ========  ========

EBITDA from Continuing Operations by Segment:
Transportation Net Loss                                 $ (3,745) $ (8,727)
   Interest Income                                            (1)       (6)
   Interest Expense                                        9,853     8,531
   Depreciation and Amortization                          11,074    12,135
   Taxes                                                  (3,227)   (2,912)
                                                        --------  --------
Transportation EBITDA                                   $ 13,954  $  9,021
                                                        ========  ========

Manufacturing Net Income                                $    228  $  4,152
   Depreciation and Amortization                             841       866
                                                        --------  --------
Total Manufacturing EBITDA                                 1,069     5,018
   Intersegment Profit                                         -         -
                                                        --------  --------
External Manufacturing EBITDA                           $  1,069  $  5,018
                                                        ========  ========



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
                 ----------------------   All Other Intersegment
             Transportation Manufacturing Segments  Elimination    Total
                 ---------  ------------ ---------- -----------  ---------
Quarter ended
 March 31, 2010
Total revenue    $ 135,064  $     25,485 $    1,932 $   (14,185) $ 148,296
Intersegment
 revenues              142        14,043          -     (14,185)         -
                 ---------  ------------ ---------- -----------  ---------
Revenue from
 external
 customers         134,922        11,442      1,932           -    148,296
Operating expense
  Materials,
   supplies and
   other            49,821             -          -           -     49,821
  Rent               5,238             -          -           -      5,238
  Labor and fringe
   benefits         29,039             -          -           -     29,039
  Fuel              27,887             -          -           -     27,887
  Depreciation and
   amortization     11,074             -          -           -     11,074
  Taxes, other
   than income
   taxes             3,118             -          -           -      3,118
  Gain on
   disposition
   of equipment     (3,871)            -          -           -     (3,871)
  Cost of goods
   sold                  -        10,532        746           -     11,278
                 ---------  ------------ ---------- -----------  ---------
    Total cost
     of sales      122,306        10,532        746           -    133,584
  Selling,
   general &
   administrative    9,807           664      1,149           -     11,620
                 ---------  ------------ ---------- -----------  ---------
    Total
     operating
     expenses      132,113        11,196      1,895           -    145,204
                 ---------  ------------ ---------- -----------  ---------
Operating income $   2,809  $        246 $       37 $         -  $   3,092
                 =========  ============ ========== ===========  =========

Quarter ended
 March 31, 2009
Total revenue    $ 155,487  $     36,868 $    2,049 $    (1,699) $ 192,705
Intersegment
 revenues                -         1,634         65      (1,699)         -
                 ---------  ------------ ---------- -----------  ---------
Revenue from
 external
 customers         155,487        35,234      1,984           -    192,705
Operating expense
  Materials,
   supplies and
   other            56,823             -          -           -     56,823
  Rent               5,575             -          -           -      5,575
  Labor and fringe
   benefits         31,153             -          -           -     31,153
  Fuel              32,316             -          -           -     32,316
  Depreciation
   and
   amortization     12,135             -          -           -     12,135
  Taxes, other
   than income
   taxes             3,511             -          -           -      3,511
  Gain on
   disposition
   of equipment     (2,104)            -          -           -     (2,104)
  Cost of goods
   sold                  -        30,436        657           -     31,093
                 ---------  ------------ ---------- -----------  ---------
    Total cost
     of sales      139,409        30,436        657           -    170,502
  Selling,
   general &
   administrative   19,435           672      1,206           -     21,313
                 ---------  ------------ ---------- -----------  ---------
    Total
     operating
     expenses      158,844        31,108      1,863           -    191,815
                 ---------  ------------ ---------- -----------  ---------
Operating (loss)
 income          $  (3,357) $      4,126 $      121 $         -  $     890
                 =========  ============ ========== ===========  =========




                      AMERICAN COMMERCIAL LINES INC.
                 SELECTED FINANCIAL AND NONFINANCIAL DATA
                (Dollars in thousands except where noted)
                                (Unaudited)

                                                     Quarter Ended Dec. 31,
                                                      ---------------------
                                                         2010       2009
                                                      ---------- ----------

Consolidated EBITDA                                   $   15,144 $   13,112


Transportation Revenue and EBITDA
Revenue                                               $  134,922 $  155,487
EBITDA                                                    13,954      9,021


Manufacturing Revenue and EBITDA
 (External and Internal)
Revenue                                               $   25,485 $   36,868
EBITDA                                                     1,069      5,018


Manufacturing External Revenue and EBITDA
Revenue                                               $   11,442 $   35,234
EBITDA                                                     1,069      5,018




Average Domestic Barges Operated
    Dry                                                    2,147      2,231
    Liquid                                                   354        385
                                                      ---------- ----------
    Total                                                  2,501      2,616
                                                      ========== ==========

Fuel Price (Average Dollars per gallon)               $     2.07 $     1.98

Capital Expenditures (including software)             $   15,676 $    8,848


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 the Company's revenues 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.

Contact Information


  • Contact:
    David T. Parker
    Vice President, Investor Relations
    and Corporate Communications
    (800) 842-5491