Indiana-based marine transportation and services company American Commercial Lines has reported income from continuing operations of $23.5 million, or $0.47 per diluted share for the fourth quarter of 2008, compared to income from continuing operations of $23.6 million or $0.46 per diluted share for the same quarter of 2007.
The company has recorded revenues of $289.9 million, a 4.2% decrease for the fourth quarter of 2008, compared with revenues of $302.5 million in 2007. EBITDA from continuing operations for the fourth quarter of 2008 was $56 million with an EBITDA margin of 19.3%, compared to $54.5 million for the fourth quarter of 2007 with an EBITDA margin of 18%.
Results for the fourth quarter 2008 included after-tax expenses of $1 million related to refinancing costs incurred not related to the company's extension of its credit facility and after tax expenses of $0.7 million related to impairment of goodwill on acquired businesses.
The company reported revenues of $1,196.8 million, a 13.9% increase for the full year of 2008, compared with $1,050.4 million for 2007, due primarily to higher transportation and manufacturing revenues. The increase is also due to revenues from companies acquired in late 2007 and early 2008.
Income from continuing operations for the year ended December 31, 2008 was $47.5 million or $0.93 per diluted share, compared to $44.4 million or $0.77 per diluted share for 2007. For the year ended December 31, 2008, EBITDA from continuing operations was $155.8 million compared to $159.9 million for the year ended December 31, 2007.
During the fourth quarter 2008, the company had $42.5 million of capital expenditures, generated $47.4 million in cash from operations, and reduced its revolver by $14.2 million to $418.6 million.
For the year ended December 31, 2008, ACL had $97.9 million of capital expenditures, used $8.5 million to complete the acquisition of Summit Contracting, received proceeds of $4 million on asset sales and reduced its revolver by $20.5 million.
Michael Ryan, President and CEO of American Commercial, said: "In 2008 we faced multiple challenges from many different fronts, including economic uncertainty, fuel price volatility, and operational disruptions due to weather events. We recognize that the economic environment is going to remain difficult, so we remain cautious about our 2009 outlook.
"As a consequence, we are continuing and accelerating efforts to drive costs out of the business in every area. We have frozen salaries for 2009. Last week we implemented a reduction of approximately 15% of our land-based salaried headcount which is expected to generate annualized savings of $9.1 million, and approximately $3.3 million in 2009 after related severance and other costs.
“With the amendment of our credit facility, extending the term through March 31, 2011, we believe we have the flexibility and liquidity to operate strategically through today's challenging economic conditions, allowing us to concentrate on achieving our business objectives."
