SOURCE: American Commercial Lines Inc.

American Commercial Lines Inc.

October 28, 2009 16:42 ET

American Commercial Lines Announces Third Quarter Results

JEFFERSONVILLE, IN--(Marketwire - October 28, 2009) - American Commercial Lines Inc. (NASDAQ: ACLI) ("ACL" or the "Company") today announced results for the quarter and nine months ended September 30, 2009.

Revenues for the quarter ended September 30, 2009 were $216.0 million, a 31.1% decrease compared with $313.7 million for the quarter ended September 30, 2008. The decrease in revenue was primarily due to changes in the mix of commodities shipped by our customers in the respective quarters into lower revenue commodities and to lower volume in the current year. The impact of lower fuel prices which contractually is passed through to our customers in the current year quarter also contributed to the decline in revenue and was partially offset by the increase in manufacturing segment's revenues in the quarter. For the quarter ended September 30, 2009, the Company's net loss was $12.2 million or $0.96 per diluted share, compared to net income of $18.3 million or $1.44 per diluted share for the comparable quarter of 2008. Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") for the third quarter of 2009 was $22.4 million, with an EBITDA margin of 10.4%, compared to $49.6 million for the third quarter of 2008 with an EBITDA margin of 15.8%. The attachment to this press release reconciles net income to EBITDA.

Results for the quarter ended September 30, 2009 were impacted by three significant non-comparable charges: (i) after-tax debt retirement expenses of $11.2 million or $0.88 per diluted share related to the Company's third quarter debt refinancing, (ii) an after-tax charge of $2.8 million or $0.22 per diluted share related to an impairment charge on the intangible assets of the Company's Summit engineering business and (iii) an after-tax charge of $1.5 million or $0.11 per diluted share related to a customer contract dispute in its manufacturing segment. In the third quarter 2009, though average outstanding debt declined from the prior year's third quarter, after-tax interest expenses were $2.0 million higher, negatively impacting the quarter by $0.16 per diluted share. The current quarter also benefitted from higher after-tax net gains from asset management actions of $7.7 million or $0.61 per diluted share.

Commenting on results, Michael P. Ryan, President and Chief Executive Officer, stated, "We have not seen a recovery in our most profitable markets, and we have been negatively impacted by the late grain harvest, which deferred any anticipated benefit from the harvest activity to the fourth quarter and early 2010. We continue to aggressively manage all of our costs, having completed additional reductions in force both at the shipyard and through our transportation operations realignment during the third quarter. We have now reduced total annualized salaried compensation costs by approximately $25 million since May 2008, establishing a more efficient organizational structure through the recent realignment of our barging operations. Additionally, we have reduced our shipyard production headcount by over 10% in the quarter and 30% overall, right sizing the manufacturing workforce. We have succeeded in producing positive cash flow and EBITDA for the quarter and nine months ended September 30, 2009 and have continued to judiciously manage our capital expenditures to position us for improved performance when the transportation markets begin to recover."

Revenues for the nine months ended September 30, 2009 were $637.5 million, a 29.7% decrease compared with $906.9 million for the same period during 2008. Transportation revenues declined by 33.4% while manufacturing revenues fell 21.5%. For the nine months ended September 30, 2009, the Company's net loss was $21.4 million, or $1.68 per diluted share, compared to net income of $24.3 million or $1.91 per diluted share for the same period of 2008. EBITDA for the nine months ended September 30, 2009 was $55.7 million, with an EBITDA margin of 8.7%, compared to $100.3 million for the same period of 2008 with an EBITDA margin of 11.1%.

In addition to the significant non-comparable charges in the quarter, comparison of the nine months ended September 30, 2009 to the comparable period of the prior year is impacted by severance related to current year reductions in force and expenses for the closure of the Houston office that exceeded the severance related to prior year actions by $1.9 million after-tax or $0.15 per diluted share, current year after-tax charges of $0.4 million or $0.03 per diluted share related to a customer's bankruptcy filing and a prior year after-tax benefit of $1.3 million or $0.10 per diluted share related to a pension reversal. Results for the nine months ended September 30, 2009 included after-tax interest expense that was $7.0 million higher than the comparable prior year period, negatively impacting income by $0.55 per diluted share. The nine months ended September 30, 2009 benefitted from higher after-tax net gains from asset management actions of $5.1 million or $0.41 per diluted share.

Transportation Results

The higher margin metals and refined liquid petrochemical products markets remained weak in the third quarter, impacting year-over-year comparisons. While the transportation segment had strong grain and legacy coal volumes, grain rates are significantly lower than the prior year due primarily to the lateness of the 2009 harvest.

The segment's revenues were $142.1 million in the third quarter and $443.4 million in the nine months ended September 30, 2009, a decrease of 41.7% from the third quarter of 2008 and 33.4% from the first nine months of the prior year or 35.3% and 28.1%, respectively, on a fuel-neutral basis. Ton-mile volumes decreased approximately 12% from the prior year quarter to 8.7 billion ton-miles and 7.5% from the prior year for the first nine months. During the quarter ended September 30, 2009, three boats that did not fit within the Company's new strategic power model were sold producing $23 million of cash proceeds. Also in the quarter impairment charges were incurred for certain other boats that have been identified as surplus. The net gain from the sale and the additional impairment was partially offset by $2.7 million and $9.4 million in lower margins from scrapping of surplus barges when compared to the prior year third quarter and nine months ended September 30, 2008, respectively.

The mix shift into lower margin commodities and lower grain pricing drove total dry portfolio fuel-neutral pricing down 25% from the prior year quarter and down 24% for the three quarters. The grain revenue price variance of negative $19.0 million in the quarter and negative $37.6 million in the first three quarters drove much of the dry portfolio decline. Liquid portfolio fuel-neutral pricing was down 8% for the quarter and up 3% from the prior year's first nine months. Higher margin liquid and bulk affreightment volumes decreased 35% and 26% in the quarter and 41% and 27% for the first nine months, respectively, from the prior year levels. Lower margin grain and legacy coal volumes increased 25% and 27% in the quarter and 41% and 39% in the first three quarters over the prior year periods.

For the current quarter and first nine months, the negative impact of volume, price, and mix significantly impacted margins. Operating income was negatively impacted by higher costs of relocating empty barges due to the current year imbalance of north and south bound freight, estimated at $6.4 million in the quarter and $16.1 million in the nine month period, and lower scrapping activity. These items were only partially offset by higher boat productivity, net gains on asset management described above and favorable SG&A. Additionally, the delayed harvest in 2009 significantly lowered normal September grain volumes. The average number of liquid barges in charter/day rate service decreased in the third quarter by 38 barges or 25% from the prior year quarter. The transportation segment's operating income in the quarter was $9.9 million compared to operating income of $34.0 million in the third quarter of 2008. The operating ratios for the third quarter of 2009 and 2008 were 93.0% and 86.1%, respectively.

Manufacturing Results

Manufacturing segment revenues of $64.2 million in the quarter ended September 30, 2009 were $7.0 million higher, or 12.2% above the prior-year, primarily due to the number of barges built and relative steel pricing, with 53 dry hoppers produced in the current year compared to 19 in the prior year. Nine liquid tankers and one special vessel were sold this quarter versus 12 tankers and 10 hybrid barges in last year's quarter. In the nine months ended September 30, 2009, manufacturing segment revenues were $46.5 million lower on fewer barges produced for external customers, with 72 dry hoppers produced in the current year compared to 191 in the prior year. In the first nine months of 2009 39 liquid tankers and three special vessels were sold versus 38 tankers, three special vessels and 10 hybrid barges in last year's first nine months.

The manufacturing segment's EBITDA increased 34.5% for the quarter and 41.9% for the nine months ended September 30, 2009, despite a $2.3 million charge related to a contract dispute. This improvement resulted from a better mix of higher margin barges sold year-to-date and improved productivity. EBITDA margin for the quarter was 8.0% and for the nine months ended September 30, 2009 was 12.7%.

Manufacturing operating profit improved by $1.1 million quarter-over-quarter and $5.8 million for the first nine months on the better mix of barges, improved productivity and safe operations, as the shipyard is approaching two million hours worked without a lost time injury in the fourth quarter of 2009. The higher provision for the customer dispute negatively impacted quarterly performance.

The manufacturing backlog has not been robust, though relatively low steel prices are stimulating a higher level of quote activity. In July, in order to right size the workforce, the shipyard headcount was reduced by approximately 10% in response to reduced demand. New orders for 25 dry cargo barges and five liquid tank barges were added to our manufacturing backlog during the quarter and 50 new dry cargo barges will be built in 2010 for our transportation segment.

Cash Flow and Debt

At September 30, 2009, the Company had $413.8 million in total debt outstanding. In the nine months ended September 30, 2009, the Company generated $83.8 million of cash flow from operations, compared to $75.4 million in the prior year. The increase, on lower net income, was primarily due to working capital changes, mainly lower accounts receivable. At September 30, 2009, the Company had approximately $196 million in available liquidity under its revolver, considering quarter-end temporarily restricted cash of $23 million which was used in October to reduce outstanding debt balances. During the first nine months of 2009 the Company had $20.1 million of capital expenditures primarily related to costs of new tank barges begun in the fourth quarter of 2008, boat and barge maintenance, improvements to the shipyard and software.

Quarter and Nine Months Ended September 30, 2009 Earnings Conference Call

ACL will conduct a conference call to discuss the Company's quarter and nine months ended September 30, 2009 earnings on October 29, 2009 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 (866) 700-6979; International (617) 213-8836; and the Participant Passcode is 32576935. For those unable to participate in the live call or webcast, the ACL Conference Call will be archived at www.aclines.com within three hours of the conclusion of the live call and will remain available through December 29, 2009. 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 $1.2 billion in revenues and approximately 3,400 employees as of December 31, 2008. 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 the Form 10-K, as amended, for the year ended December 31, 2008 and our most recent 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         Nine Months Ended
                                   Sept. 30,               Sept. 30,
                            ----------------------  ----------------------
                               2009        2008        2009        2008
                            ----------  ----------  ----------  ----------

Revenues
  Transportation and
   Services                 $  151,769  $  256,456  $  467,159  $  689,995
  Manufacturing                 64,198      57,219     170,348     216,890
                            ----------  ----------  ----------  ----------
     Revenues                  215,967     313,675     637,507     906,885
                            ----------  ----------  ----------  ----------

Cost of Sales
  Transportation and
   Services                    130,562     203,469     416,316     585,205
  Manufacturing                 57,172      53,537     147,497     201,441
                            ----------  ----------  ----------  ----------
     Cost of Sales             187,734     257,006     563,813     786,646
                            ----------  ----------  ----------  ----------

Gross Profit                    28,233      56,669      73,694     120,239

Selling, General  and
 Administrative Expenses        19,580      20,110      59,434      60,614

                            ----------  ----------  ----------  ----------
Operating Income                 8,653      36,559      14,260      59,625
                            ----------  ----------  ----------  ----------

Other Expense (Income)
  Interest Expense              10,480       7,469      30,833      20,189
  Debt Retirement Expenses      17,659           -      17,659       2,379
  Other, Net                      (328)       (401)       (809)     (1,547)
                            ----------  ----------  ----------  ----------
     Other Expenses             27,811       7,068      47,683      21,021
                            ----------  ----------  ----------  ----------

(Loss) Income from
 Continuing Operations
 before Income Taxes           (19,158)     29,491     (33,423)     38,604

Income Taxes (Benefit)          (6,991)     11,136     (12,202)     14,582
                            ----------  ----------  ----------  ----------

(Loss) Income from
 Continuing Operations         (12,167)     18,355     (21,221)     24,022

Discontinued Operations,
 Net of Tax                         (5)         (7)       (177)        296

                            ----------  ----------  ----------  ----------
Net (Loss) Income           $  (12,172) $   18,348  $  (21,398) $   24,318
                            ==========  ==========  ==========  ==========
Basic (loss) earnings per
 common share:
  (Loss) income from
   continuing operations    $    (0.96) $     1.45  $    (1.67) $     1.91
  (Loss) income from
   discontinued operations,
   net of tax                        -           -       (0.01)       0.02
                            ----------  ----------  ----------  ----------
Basic (loss) earnings per
 common share               $    (0.96) $     1.45  $    (1.68) $     1.93
                            ==========  ==========  ==========  ==========
(Loss) earnings per common
 share - assuming dilution:
  (Loss) income from
   continuing operations    $    (0.96) $     1.44  $    (1.67) $     1.89
  (Loss) income from
   discontinued operations,
   net of tax                        -           -       (0.01)       0.02
                            ----------  ----------  ----------  ----------
(Loss) earnings per common
 share - assuming dilution  $    (0.96) $     1.44  $    (1.68) $     1.91
                            ==========  ==========  ==========  ==========
Weighted Average Shares
 Outstanding:
Basic                       12,715,120  12,657,771  12,705,308  12,598,909
Diluted                     12,715,120  12,714,207  12,705,308  12,723,276






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

                                                    September    December
                                                        30,         31,
                                                       2009      2008 (1)
                                                    ----------  ----------
                             ASSETS
Current Assets
   Cash and Cash Equivalents                        $    1,824  $    1,217
   Cash, Restricted                                     23,000           -
   Accounts Receivable, Net                             91,986     138,695
   Inventory                                            46,658      69,635
   Deferred Tax Asset                                    3,829       5,173
   Assets Held for Sale                                  2,222       4,577
   Prepaid and Other Current Assets                     22,847      39,002
                                                    ----------  ----------
      Total Current Assets                             192,366     258,299
Properties, Net                                        525,157     554,580
Investment in Equity Investees                           4,251       4,039
Other Assets                                            45,086      22,333
                                                    ----------  ----------
      Total Assets                                  $  766,860  $  839,251
                                                    ==========  ==========


                            LIABILITIES
Current Liabilities
   Accounts Payable                                 $   36,241  $   67,719
   Accrued Payroll and Fringe Benefits                  17,094      25,179
   Deferred Revenue                                     14,796      13,986
   Accrued Claims and Insurance Premiums                17,647      22,819
   Accrued Interest                                      6,910       1,237
   Current Portion of Long Term Debt                       784       1,420
   Customer Deposits                                     3,731       6,682
   Other Liabilities                                    29,128      43,522
                                                    ----------  ----------
      Total Current Liabilities                        126,331     182,564
Long Term Debt                                         412,994     418,550
Pension & Post Retirement Liabilities                   44,450      44,140
Deferred Tax Liability                                  27,393      30,389
Other Long Term Liabilities                              4,403       4,899
                                                    ----------  ----------
      Total Liabilities                                615,571     680,542
                                                    ----------  ----------



                        STOCKHOLDERS' EQUITY
Common stock; authorized 50,000,000 shares at $.01
 par value; 15,894,908 and 15,813,746 shares issued
 and outstanding as of September 30, 2009 and
 December 31, 2008, respectively                           159         158
Treasury Stock; 3,178,087 and 3,150,906 shares at
 September 30, 2009 and December 31, 2008,
 respectively                                         (313,302)   (312,886)
Other Capital                                          298,071     293,493
Retained Earnings                                      174,522     195,920
Accumulated Other Comprehensive Loss                    (8,161)    (17,976)
                                                    ----------  ----------
         Total Stockholders' Equity                    151,289     158,709
                                                    ----------  ----------
         Total Liabilities and Stockholders'
          Equity                                    $  766,860  $  839,251
                                                    ==========  ==========


(1) The Consolidated Balance Sheet at December 31, 2008 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        Nine Months Ended
                                     Sept. 30,             Sept. 30,
                                --------------------  --------------------
                                  2009       2008       2009       2008
                                ---------  ---------  ---------  ---------

Net (Loss) Income from
 Continuing Operations          $ (12,167) $  18,355  $ (21,221) $  24,022
Discontinued Operations, Net of
 Income Taxes                          (5)        (7)      (177)       296
                                ---------  ---------  ---------  ---------
Consolidated Net (Loss) Income  $ (12,172) $  18,348  $ (21,398) $  24,318
                                ---------  ---------  ---------  ---------
Adjustments from Continuing
 Operations:
   Interest Income                     (1)       (30)       (13)       (92)
   Interest Expense                10,480      7,469     30,833     20,189
   Debt Retirement Expenses        17,659          -     17,659      2,379
   Depreciation and
    Amortization                   13,390     12,626     40,664     38,760
   Taxes                           (6,991)    11,136    (12,202)    14,582
Adjustments from Discontinued
 Operations:
   Interest Income                      -         (6)         -        (38)
   Taxes                                -         13        170        178

EBITDA from Continuing
 Operations                        22,370     49,556     55,720     99,840
EBITDA from Discontinued
 Operations                            (5)         -         (7)       436
                                ---------  ---------  ---------  ---------
Consolidated EBITDA             $  22,365  $  49,556  $  55,713  $ 100,276
                                =========  =========  =========  =========

EBITDA from Continuing
 Operations by Segment:
Transportation Net (Loss)
 Income                         $ (10,909) $  15,756  $ (32,176) $  11,298
   Interest Income                     (1)       (27)       (12)       (85)
   Interest Expense                10,470      7,414     30,803     20,134
   Debt Retirement Expenses        17,659          -     17,659      2,379
   Depreciation and
    Amortization                   12,068     11,338     36,622     35,477
   Taxes                           (6,991)    11,136    (12,223)    14,582
                                ---------  ---------  ---------  ---------
Transportation EBITDA           $  22,296  $  45,617  $  40,673  $  83,785
                                =========  =========  =========  =========

Manufacturing Net Income        $   4,224  $   3,384  $  18,972  $  13,698
   Depreciation and
    Amortization                      891        725      2,642      2,073
                                ---------  ---------  ---------  ---------
Total Manufacturing EBITDA          5,115      4,109     21,614     15,771
   Intersegment Profit                  -       (306)         -       (540)
                                ---------  ---------  ---------  ---------
External Manufacturing EBITDA   $   5,115  $   3,803  $  21,614  $  15,231
                                =========  =========  =========  =========



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-  Manufactu- All Other Intersegment
                      tation      ring     Segments  Elimination   Total
                     ---------  ---------- ---------  ---------  ---------
Quarter ended
 September 30, 2009
Total revenue        $ 142,231  $   68,304 $   9,656  $  (4,224) $ 215,967
Intersegment
 revenues                  106       4,106        12     (4,224)         -
                     ---------  ---------- ---------  ---------  ---------
Revenue  from
 external customers    142,125      64,198     9,644          -    215,967
Operating expense
  Materials, supplies
   and other            58,939           -         -          -     58,939
  Rent                   5,379           -         -          -      5,379
  Labor and fringe
   benefits             28,249           -         -          -     28,249
  Fuel                  28,134           -         -          -     28,134
  Depreciation and
   amortization         12,068           -         -          -     12,068
  Taxes, other than
   income taxes          3,329           -         -          -      3,329
  Gain on
   disposition of
   equipment           (18,333)          -         -          -    (18,333)
  Cost of goods sold         -      57,172    12,797          -     69,969
                     ---------  ---------- ---------  ---------  ---------
     Total cost of
      sales            117,765      57,172    12,797          -    187,734
  Selling, general &
   administrative       14,444       2,853     2,283          -     19,580
                     ---------  ---------- ---------  ---------  ---------
     Total operating
      expenses         132,209      60,025    15,080          -    207,314
                     ---------  ---------- ---------  ---------  ---------
Operating income
 (loss)              $   9,916  $    4,173 $  (5,436) $       -  $   8,653
                     =========  ========== =========  =========  =========

Quarter ended
 September 30, 2008
Total revenue        $ 244,100  $   58,426 $  13,181  $  (2,032) $ 313,675
Intersegment
 revenues                  117       1,207       708     (2,032)         -
                     ---------  ---------- ---------  ---------  ---------
Revenue  from
 external customers    243,983      57,219    12,473          -    313,675
Operating expense
  Materials,
   supplies and
   other                83,087           -         -          -     83,087
  Rent                   5,772           -         -          -      5,772
  Labor and fringe
   benefits             30,306           -         -          -     30,306
  Fuel                  59,590           -         -          -     59,590
  Depreciation and
   amortization         11,338           -         -          -     11,338
  Taxes, other than
   income taxes          3,473           -         -          -      3,473
  Gain on
   disposition of
   equipment              (360)          -         -          -       (360)
  Cost of goods sold         -      53,537    10,263          -     63,800
                     ---------  ---------- ---------  ---------  ---------
     Total cost of
      sales            193,206      53,537    10,263          -    257,006
  Selling, general &
   administrative       16,757         649     2,704          -     20,110
                     ---------  ---------- ---------  ---------  ---------
     Total operating
      expenses         209,963      54,186    12,967          -    277,116
                     ---------  ---------- ---------  ---------  ---------
Operating income
 (loss)              $  34,020  $    3,033 $    (494) $       -  $  36,559
                     =========  ========== =========  =========  =========



                      AMERICAN COMMERCIAL LINES INC.
            Statement of Operating Income by Reportable Segment
                          (Dollars in thousands)
                                (Unaudited)


                     Reportable Segments
                     --------------------
                     Transpor-  Manufactu- All Other Intersegment
                      tation      ring     Segments  Elimination   Total
                     ---------  ---------- ---------  ---------  ---------
Nine Months ended
 September 30, 2009
Total revenue        $ 443,690  $  184,159 $  23,878  $ (14,220) $ 637,507
Intersegment
 revenues                  297      13,811       112    (14,220)         -
                     ---------  ---------- ---------  ---------  ---------
Revenue  from
 external customers    443,393     170,348    23,766          -    637,507
Operating expense
  Materials, supplies
   and other           170,440           -         -          -    170,440
  Rent                  16,334           -         -          -     16,334
  Labor and fringe
   benefits             86,492           -         -          -     86,492
  Fuel                  92,052           -         -          -     92,052
  Depreciation and
   amortization         36,622           -         -          -     36,622
  Taxes, other than
   income taxes         10,508           -         -          -     10,508
  Gain on
   disposition of
   equipment           (20,630)          -         -          -    (20,630)
  Cost of goods
   sold                      -     147,497    24,498          -    171,995
                     ---------  ---------- ---------  ---------  ---------
     Total cost of
      sales            391,818     147,497    24,498          -    563,813
  Selling, general
   & administrative     48,233       4,008     7,193          -     59,434
                     ---------  ---------- ---------  ---------  ---------
     Total operating
      expenses         440,051     151,505    31,691          -    623,247
                     ---------  ---------- ---------  ---------  ---------
Operating income
 (loss)              $   3,342  $   18,843 $  (7,925) $       -  $  14,260
                     =========  ========== =========  =========  =========

Nine Months ended
 September 30, 2008
Total revenue        $ 666,564  $  219,083 $  25,272  $  (4,034) $ 906,885
Intersegment
 revenues                  573       2,193     1,268     (4,034)         -
                     ---------  ---------- ---------  ---------  ---------
Revenue  from
 external customers    665,991     216,890    24,004          -    906,885
Operating expense
  Materials, supplies
   and other           237,906           -         -          -    237,906
  Rent                  17,708           -         -          -     17,708
  Labor and fringe
   benefits             86,343           -         -          -     86,343
  Fuel                 179,100           -         -          -    179,100
  Depreciation and
   amortization         35,477           -         -          -     35,477
  Taxes, other than
   income taxes         11,382           -         -          -     11,382
  Gain on
   disposition of
   equipment              (644)          -         -          -       (644)
  Cost of goods
   sold                      -     201,441    17,933          -    219,374
                     ---------  ---------- ---------  ---------  ---------
     Total cost of
      sales            567,272     201,441    17,933          -    786,646
  Selling, general
   & administrative     51,597       2,409     6,608          -     60,614
                     ---------  ---------- ---------  ---------  ---------
     Total operating
      expenses         618,869     203,850    24,541          -    847,260
                     ---------  ---------- ---------  ---------  ---------
Operating income
 (loss)              $  47,122  $   13,040 $    (537) $       -  $  59,625
                     =========  ========== =========  =========  =========



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

                                      Quarter Ended      Nine Months Ended
                                         Sept. 30,          Sept. 30,
                                    ------------------- -------------------
                                      2009      2008      2009      2008
                                    --------- --------- --------- ---------

Consolidated EBITDA                 $  22,365 $  49,556 $  55,713 $ 100,276


Transportation Revenue and EBITDA
Revenue                             $ 142,125 $ 243,983 $ 443,393 $ 665,991
EBITDA                                 22,296    45,617    40,673    83,785


Manufacturing Revenue and EBITDA
 (External and Internal)
Revenue                             $  68,304 $  58,426 $ 184,159 $ 219,083
EBITDA                                  5,115     4,109    21,614    15,771


Manufacturing External Revenue and
 EBITDA
Revenue                             $  64,198 $  57,219 $ 170,348 $ 216,890
EBITDA                                  5,115     3,803    21,614    15,231




Average Domestic Barges Operated
  Dry                                   2,173     2,321     2,209     2,372
  Liquid                                  367       382       376       384
                                    --------- --------- --------- ---------
  Total                                 2,540     2,703     2,585     2,756
                                    ========= ========= ========= =========

Fuel Price (Average Dollars per
 gallon)                            $    2.01 $    3.60 $    1.95 $    3.27

Capital Expenditures (including
 software)                          $   6,754 $  30,903 $  20,160 $  56,952


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 & Corp. Communications
    (800) 842-5491