"Overall, we would characterize demand in the 2012 sailing season as adequate but not optimal. While we operated all of our vessels in the 2012 sailing season, we were not able to optimize our trade patterns for a number of reasons, including weather conditions, a reduction in salt and grain tonnage, erratic order patterns by our customers, softness in the stone markets, particularly in the July through December period, and unexpected events experienced by our customers including a work stoppage and an extended plant maintenance shutdown. As a result of these factors, we were not able to maximize the percentage of time that our vessels operated in revenue-loaded condition."

"Additionally, one of the two vessels that we acquired in September 2011 was delayed in being introduced into service until October 23, 2012 instead of our projected introduction date of August 1, 2012. This sailing delay was caused by the modifications necessary for the vessel to meet Great Lakes standards, taking longer than anticipated. In addition, the second acquired vessel encountered a series of start-up issues, and lost approximately 77 Sailing Days during the season due to weakness in the grain market and an early layup for further modifications. We remain enthusiastic about the prospects for both of these vessels and expect them both to be fully operational for the 2013 sailing season. Aside from the aforementioned four vessels that encountered operating incidents and start up issues, the combined results from our remaining 12 vessels exceeded our 2012 sailing season earnings guidance."

Laurence S. Levy, Chairman and CEO of Rand, commented, "We are continuing to evaluate our customers' capacity needs for the 2013 sailing season. We are targeting key business opportunities that are well suited to our fleet, allow for future growth, and will be accretive to our profitability. At the present time, the demand environment in our markets looks very similar to the 2012 sailing season. We do not anticipate integrating any new vessels into our fleet or managing any major vessel modification projects during the 2013 sailing season, and therefore our sole focus will be to execute our business plan. Notwithstanding the challenges that we faced over the last nine months, the fundamentals of our business remain intact, including our low cost operating structure, our non-duplicatable asset portfolio, and our extensive customer network. We believe that these attributes will allow us to continue to create long term shareholder value."
Rand Logistics, Inc.
Summary Statements of Operations (Unaudited)
(U.S. Dollars 000's except for Shares and Per Share data)
  Three months ended December 31, Nine months ended December 31,
  2012 2011 2012 2011
Freight and related revenue  $ 37,345  $ 35,917  $ 112,712  $ 101,775
Fuel and other surcharges  11,994  12,800  35,576  36,972
Outside voyage charter revenue  203  619  1,437  1,321
  49,542 49,336 149,725 140,068
Outside voyage charter fees 202 615 1,447 1,312
Vessel operating expenses 34,695 32,076 99,838 91,907
Repairs and maintenance 110 36 767 1,068
General and administrative 3,145 2,558 9,290 7,987
Depreciation and amortization of drydock costs and intangibles 5,283 4,017 14,800 11,890
Loss (gain) on foreign exchange 48 16 34  (51)
  43,483 39,318 126,176 114,113
Operating Income  $ 6,059  $ 10,018  $ 23,549  $ 25,955
Net income applicable to common stockholders  $ 2,612  $ 6,643  $ 7,049  $ 15,096
Net income per share – basic   $ 0.15  $ 0.38  $ 0.40  $ 0.95
Net income per share – diluted  $ 0.15  $ 0.37  $ 0.40  $ 0.93

Management will host a conference call to discuss the results at 8:30 a.m. ET on Thursday, February 7, 2013. Interested parties may participate in the conference call by dialing 877-218-9317 (706-758-6006 for international callers), Conference ID#88681802. Please dial in 10 minutes before the call is scheduled to begin.

A telephonic replay of the conference call may be accessed approximately two hours after the completion of the call through April 7, 2013. Dial 855-859-2056 (404-537-3406 for international callers), Conference ID#88681802 to access the phone replay.

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