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Rand Logistics Reports Second Quarter Fiscal Year 2014 Financial Results

Operating Income plus Depreciation and Amortization increased by 6.0% to $15.6 million;

Vessel Operating Expense per Sailing Day Declined 8.9% and Tonnage Hauled Increased by 9.0%

NEW YORK, Nov. 6, 2013 (GLOBE NEWSWIRE) -- Rand Logistics, Inc. (Nasdaq:RLOG) ("Rand") today announced its financial results for its fiscal year 2014 second quarter ended September 30, 2013.

Quarter Ended September 30, 2013

Versus Quarter Ended September 30, 2012 Financial Results
  • Marine freight revenue (excluding fuel and other surcharges) increased by 10.0% to $43.0 million from $39.0 million. Excluding the impact of currency, marine freight revenue increased 12.7%. This increase was primarily attributable to contractual price increases and 101 additional Sailing Days. In addition, certain customer contract renewals included a reset of the base fuel price to reflect prevailing market conditions for fuel, resulting in an increase in marine freight revenue and an equivalent reduction in fuel surcharges.
  • Marine freight revenue per Sailing Day increased by 1.4% to $33,402 from $32,945. This increase was somewhat offset by a weaker Canadian dollar and a shift in commodity mix.
  • Total revenue was flat at $50.5 million. Reduced fuel surcharges, the effect of the weaker Canadian dollar and a mix shift from iron ore and coal to lower revenue generating commodities was offset by increased tonnage carried and increased prices. A 9.0% increase in tons hauled and an 8.5% increase in Sailing Days helped to mitigate the impact of the mix shift.
  • Vessel operating expenses decreased by 1.2% to $31.6 million from $32.0 million. This decrease was primarily attributable to reduced fuel pricing and a reduction in vessel incident costs, partially offset by a greater number of Sailing Days. Due in part to improved cost control, vessel operating expenses per Sailing Day declined by 8.9%, or $2,413 per day, to $24,579 from $26,992.
  • Operating income plus depreciation and amortization increased by 6.0% to $15.6 million from $14.7 million. The weaker Canadian dollar negatively impacted operating income plus depreciation and amortization by $0.4 million.

Six Months Ended September 30, 2013

Versus Six Months Ended September 30, 2012 Financial Results
  • Marine freight revenue (excluding fuel and other surcharges) increased by 9.5% to $82.6 million from $75.4 million. Excluding the impact of currency, marine freight revenue increased 11.3%. Total Sailing Days in the six month period were 2,548 compared to 2,359 in the prior year and a theoretical maximum of 2,745.
  • Marine freight revenue per Sailing Day increased by 1.4%, to $32,402 compared to $31,949 per Sailing Day.
  • Total revenue declined by 1.2% to $98.9 million from $100.2 million. Reduced fuel surcharges, the effect of the weaker Canadian dollar and a mix shift from iron ore and coal to lower revenue generating commodities were partially offset by increased tonnage carried and increased prices. An 8.2% increase in tons hauled and an 8.0% increase in Sailing Days helped to mitigate the impact of the mix shift.
  • Vessel operating expenses decreased by 1.3% to $64.3 million from $65.1 million. This decrease was primarily attributable to reduced fuel pricing and a reduction in vessel incident costs, partially offset by a greater number of Sailing Days. Due in part to improved cost control, vessel operating expenses per Sailing Day declined by 8.6%, or $2,383 per day, to $25,232 from $27,615.
  • Operating income plus depreciation and amortization increased by 2.1% to $27.6 million from $27.0 million.

Management Comments

Scott Bravener, President of Lower Lakes, commented, "We are pleased with the operating performance of all of our vessels, including the five vessels that we acquired in 2011, which are now fully integrated into our fleet. Despite the challenging economic environment, vessel operating expenses per day declined by 8.6% for the six months ended September 2013 compared to last year's comparable period. As a result, we achieved a vessel margin per day of $14,631 and $13,232 for the three month and six month periods ended September 30, 2013, respectively. Delays due to inclement weather, dock delays and traffic thus far in the 2013 sailing season have been consistent with our long-term historical experience. The investments that we made over the last two years are yielding a reduction in downtime due to incidents and mechanical delays."

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