American Commercial Lines Announces Results for Quarter and Six Months ended June 30, 2010
JEFFERSONVILLE, IN, July 29, 2010 American Commercial Lines Inc. (NASDAQ: ACLI) (ACL or the
Company) today announced results for the quarter and six months ended June 30, 2010.
Second Quarter 2010 Results
Revenues for the quarter were $164.3 million, a 24.8% decrease compared with $218.5 million for the
second quarter of 2009. Transportation revenues increased by $4.6 million or 3.2%, while
manufacturing revenue fell $59.0 million or 83.2% due to lower volumes. The Companys current
quarter loss from continuing operations of $1.4 million, or $0.11 per diluted share, was
approximately one-half of the loss of $2.9 million or $0.23 per diluted share for the second
quarter of 2009. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) from
continuing operations for the quarter was $19.0 million with an EBITDA margin of 11.6%, compared to
$20.9 million for the second quarter of 2009 with an EBITDA margin of 9.6%. The attachment to this
press release reconciles net income to EBITDA.
The improved year-over-year quarterly income from continuing operations was driven by stronger
transportation segment results and lower interest costs on lower outstanding debt balances, offset
by lower manufacturing segment results. Results for the second quarter of 2009 included after-tax
severance and Houston sales office closure expenses of $0.3 million or $0.03 per share.
Commenting on second quarter results, Michael P. Ryan, President and Chief Executive Officer,
stated, We continued to improve the fundamentals of our business despite the weak economy. These
fundamentals include executing our strategic initiatives and controlling costs. Our improved
income from continuing operations and current year cash flows from operations, boat sales and a
government grant allowed us to continue to reinvest in our fleet while reducing debt in the
quarter. We have seen some volume recovery in the liquids and metals transportation markets, but
volumes remain significantly below pre-recession levels. Pricing levels appear to have stabilized
as well, but are also well below levels achieved in periods of normal volume. With revenues down,
we focused primarily on cost control, a path that drove a $10.4 million improvement in the
transportation segments operating income compared to the prior year quarter. Our manufacturing
business volumes declined significantly as potential customers are delaying capital spending for
new barges. We have right-sized our manufacturing business during this downturn and were still able
to generate positive operating income in the first half, despite the negative impact of a
month-long labor strike in April.
In weak and strong economies, we remain focused on executing our strategic initiatives and
improving our business fundamentals. We believe our improved quarter-over-quarter transportation
segment financial performance is a key metric of our progress. Historically, we generate stronger
financial results the last half of each year, primarily driven by demand from the grain harvest.
Based upon USDA forecasts for the upcoming harvest, we believe this trend will