Horizon Lines has announced its financial results for the year ended December 21, 2014. It reported that operating revenue increased by 4.9% year-on-year to $1.08bn. The company also recorded EBITDA of $25.4m, a fall of 69.47% year-on-year. Accordingly Horizon Lines’ margin stood at 2.35%.
The increase in revenue was primarily the result of rising volumes and growth in non-transportation revenue, although this was slightly offset by lower fuel surcharges and declining container rates.
The fall in EBITDA was mainly due to restructuring charges transaction-related expense, an impairment charge, legal settlements and expenses. Adjusted EBITDA for 2014, which excluded these $77m of cots, totalled $102.5m versus $96.2m in the prior year. The $6.3m improvement was primarily due to higher volume, improved fuel recovery, increased space charter revenue and decreased workers compensation expense, partially offset by lower rates, net of fuel and higher vessel operating costs.
The company announced that it has entered into and executed an asset purchase agreement with Luis Ayala Colon Sucrs to sell certain San Juan, Puerto Rico, container terminal assets and assign its lease with the Puerto Rico Ports Authority.
The agreement follows Horizon Lines’ announcement on November 11, 2014, to cease providing liner service between the US and Puerto Rico by the end of 2014 and to terminate San Juan terminal services by the end of the first quarter of 2015.
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