AMERICAN COMMERCIAL LINES INC.
||Christopher A. Black
Sr. Vice President; Chief Financial Officer
FOR IMMEDIATE RELEASE
Commercial Lines Inc. Announces Fourth Quarter and Year-End Results
Indiana (February 8, 2006)
American Commercial Lines Inc.
(ACL or the Company) (NASDAQ:ACLI)
today announced results for the fourth quarter and year ended December 31, 2005. Net sales for the
quarter were $236.2 million, a 31% increase compared with $180.3 million for the fourth quarter of
2004. Net income for the quarter was $8.6 million or $0.28 per diluted share which included charges
for the early retirement of debt of $7.3 million (net of tax) as
a result of the Companys initial public offering during the
quarter, or $0.24 per diluted share, compared
to net income of $78.3 million for the fourth quarter last year, which included an extraordinary
gain on the discharge of debt of $155.4 million and bankruptcy related charges of $88.7 million.
Net income for the fourth quarter of 2004 excluding these two items (a non-GAAP financial measure),
would have been $11.6 million. ACLs predecessor company was not a taxable entity in 2004.
Commenting on the results, Mark R. Holden, President and Chief Executive Officer, stated: We are
very pleased with our accomplishments during 2005. ACL is strong financially, operationally, and
perhaps most importantly, talent-wise. Industry fundamentals continue to strengthen with 2005
representing the seventh consecutive year of a net decline in barge capacity in the U.S. Freight
demand is stable and improving and we believe is likely to accelerate as we broaden our markets.
While we are encouraged by our performance during 2005, we are committed to aggressively improving
our performance during 2006 and beyond, ensuring that we achieve our potential.
ACL also reported net income for the full year of 2005 of $11.8 million, or $0.48 per diluted share
which included charges for the early retirement of debt of $7.3 million (net of tax), or $0.30 per
diluted share compared to net income of $4.4 million for 2004, which included an extraordinary gain
on the discharge of debt of $155.4 million and bankruptcy related charges of $140.0 million. Net
loss for the year 2004 excluding these two items (a non-GAAP financial measure), would have been
$11.0 million. Revenues for the year 2005 were $741.4 million, a 17% increase compared with
revenues of $632.3 million for the year 2004.
Increased revenues for the fourth quarter were driven within the transportation segment by average
fuel neutral rate increases of 25% on the dry freight business and 16% on the liquid freight
business compared to the fourth quarter of 2004. Fuel neutral freight rates were up, on average,
24% and 10% respectively on the dry and liquid business for the full year in 2005 compared to 2004.
Increased revenues for the fourth quarter were also driven by a 101% increase in Jeffboat revenues,
which were $52.6 million, excluding revenue from vessels manufactured for our transportation
segment, in the fourth quarter of 2005 compared to $26.2 million for