Trailer Bridge: modeFinace Credit Report

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modeFinanceTM HeadquarterBuilding A - AREA Science ParkPadriciano 99 - 34149 Trieste - ItalyPh.: +39 040 375 5337Fax: +39 040 375 [email protected]

askMORETM is a registered mark of modeFinanceTM

TRAILER BRIDGE INCFriday, 18 November 2011

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D C CC CCC B BB BBB A AA AAA

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D C CC CCC B BB BBB A AA AAAnot

available

non return extremlypathological

pathological highdanger

weak sufficient adequate good very

strongextremely

strong

Company name TRAILER BRIDGE INC

Identification number US133617986

Country United States of America

ZIP code and city 32226 - JACKSONVILLE

Address 10405, New Berlin Road East

+1 904 751 7100

www.trailerbridge.com

[email protected]

Legal form

Account Consolidated

Incorporation date 1991

NACE 2 Sector 5020 - Sea and coastal freight water transport

Listed

Status Active

MORE Credit limit Not eligible for credit on the base of the available informations

31/12/2010 31/12/2009 31/12/2008

Turnover (th e) 88,449 79,344 95,588

Rating CC B CCC

Probability of default 42.00% 3.80% 16.00%

Confidence Level 92% 92% 100%

Solvency ratios

Leverage ratio -368.57 93.13 -67.93

Total asset/Total liabilties 1.00 1.01 0.99

Liquidity ratios

Current Ratio 0.27 1.89 1.62

Quick Ratio - - 1.62

Profitability and economic equili-

brium ratios

Return on investement ROI (%) 6.62 10.96 5.78

Return on equity ROE (%) -731.65 206.98 -175.76

Asset turnover 1.02 0.96 1.08

Interest paid weight 1.29 0.80 1.45

Gross Profit/Operating revenue 0.46 0.49 0.40

Interest Coverage ratios

EBIT interest coverage ratio 0.77 1.24 0.67

Analysis and trend of financial

strength


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modeFinance TM srlVAT number [email protected]

Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741

Sector Analysis

Company Healthy Balanced Vulnerable Risky

Solvency ratios

Leverage ratio -368.57 0.47 1.95 3.77 -2.33

Total asset/Total liabilties 1.00 3.11 1.51 1.22 0.96

Liquidity ratios

Current Ratio 0.27 2.71 1.51 1.02 0.52

Quick Ratio - 2.65 1.47 0.99 0.50

Profitability and economic equilibrium ratios

Return on investement ROI (%) 6.62 18.61 6.74 0.14 -9.19

Return on equity ROE (%) -731.65 22.86 12.17 -6.68 -100.10

Asset turnover 1.02 1.14 0.62 0.65 0.70

Interest paid weight 1.29 0.01 0.17 0.03 -0.16

Gross Profit/Operating revenue 0.46 0.32 0.18 0.10 -0.01

Interest Coverage ratios

EBIT interest coverage ratio 0.77 105.10 3.27 -0.65 -4.03

Cash Conversion Cycle (days)

Days Sales Of Inventory (DIO) - 4 5 6 8

Days Sales Outstanding (DSO) 40 30 34 28 23

Days Payable Outstanding (DPO) 23 11 15 18 25

Cash Conversion Cycle (DIO + DSO - DPO) - 21 17 15 4

Numer of analyzed companies - 170 666 431 143

(Average) Rating CC A BB B CC

The sector has been chosen according to:

international companies in the sector NACE 2 5020 with financial data of year 2009.


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Sector Analysis - Graphs


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Balance Sheet

BALANCE SHEET (th e) 31/12/2010 31/12/2009 31/12/2008

Accounting practice Local GAAP Local GAAP Local GAAP

Exchange rate USD - EUR 0.74839 0.69416 0.71855

Total assets 87,114 82,270 88,619

Fixed assets 66,812 63,857 69,795

Intangible fixed assets 0 0 0

Tangible fixed assets 61,840 58,928 64,169

Other fixed assets 4,971 4,929 5,626

Current assets 20,302 18,413 18,824

Stocks - - 0

Debtors 9,746 8,895 12,085

Other current assets 10,556 9,517 6,739

Cash & cash equivalent 8,593 7,627 5,185

Shareholders funds -237 874 -1,324

Capital 91 84 86

Other shareholders funds -327 790 -1,409

Total liabilities 87,350 81,396 89,943

Non current liabilities 13,318 71,655 78,293

Long term debt 13,318 71,616 77,995

Other non-current liabilities 0 39 298

Current liabilities 74,032 9,741 11,651

Loans 63,894 2,690 2,066

Creditors 5,546 2,144 3,779

Other current liabilities 4,592 4,908 5,806

Total shareh. funds & liab. 87,114 82,270 88,620

NET DEBT (th e) 31/12/2010 31/12/2009 31/12/2008

Short term debts 63,894 2,690 2,066

Long term debt 13,318 71,616 77,995

Cash & cash equivalent 8,593 7,627 5,185

Net debt 68,619 66,679 74,875

31/12/2010 31/12/2009 31/12/2008

Working capital - - -

Net Current Assets -53,730 8,672 7,173

31/12/2010 31/12/2009 31/12/2008

Days Sales Of Inventory (DIO) - - 0

Days Sales Outstanding (DSO) 40 41 46

Days Payable Outstanding (DPO) 23 10 14

Cash Conversion Cycle (DIO + DSO - DPO) - - 32


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Income Statement

INCOME STATEMENT (th e) 31/12/2010 31/12/2009 31/12/2008

Accounting practice Local GAAP Local GAAP Local GAAP

Exchange rate USD - EUR 0.74839 0.69416 0.71855

Sales 88,449 79,344 95,588

Revenues growth (%) 11.5 -17.0 -

Other revenues +/- variation in inventories and contract in progress + Fixed assets

own construction capitalized0 0 0

Operating revenue / turnover 88,449 79,344 95,588

Total operating costs 82,712 70,415 90,586

Costs growth (%) 17 -22 -

Service costs - - -

Material costs - - -

Costs of employees - - -

EBITDA 10,379 13,249 9,428

Depreciation 4,643 4,320 4,426

EBIT 5,737 8,929 5,002

Financial P/L -7,409 -7,121 -7,322

Financial revenue 33 90 118

Financial expenses 7,443 7,211 7,440

Interest paid 7,443 7,211 7,440

P/L before tax -1,672 1,808 -2,320

Extr. and other P/L - - -

Extr. and other revenue - - -

Extr. and other expenses - - -

P/L before tax + Extr. and other P/L - - -

Taxation 62 -1 6

P/L for period -1,734 1,809 -2,327

31/12/2010 31/12/2009 31/12/2008

Costs of Good Sold 47,907 40,473 57,798

Gross Profit 40,542 38,871 37,790

Other Operating Expenses 34,805 29,942 32,788

31/12/2010 31/12/2009 31/12/2008

Cash flow 2,909 6,129 2,100

Added value - - -

31/12/2010 31/12/2009 31/12/2008

Number of employees 133 205 223


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Evolutions and trends


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Qualitative information

Full overview Trailer Bridge, Inc. is a publicly quoted company engaged in the provision of freight services. It was the first

company to provide a unique combination of over - the road and over - the - water transportation services. The

company was founded in 1991 by Malcom McLean, the transportation pioneer who invented containerization

more than forty years ago. It has its registered head office based in Jacksonville, Florida. The company’s common

stock is listed on NASDAQ Global Market under the ticker symbol “TRBR. “ Trailer Bridge operates as an integrated

trucking and marine freight carrier, which is focused in providing truckload freight transportation to and from

all points of the continental United States and Puerto Rico. The company offers highway transportation services

in the continental United States and marine transportation between Jacksonville, Florida, and San Juan, Puerto

Rico. It also provides southbound containers and trailers, as well as moves new automobiles, used automobiles,

non - containerized or freight not in trailers, and freight moving in shipper - owned or leased equipment. As of

December 2006, Trailer Bridge operated a fleet of 106 tractors, including 74 company owned units and 32 leased

and owner operator units; 2,880 53’ high cube containers; 2,171 53’ chassis; 305 53’ vehicle transport modules;

and 281 high - cube trailers. The company has signed a multi - year agreement with the world’s leading supplier

of security systems, Sensormatic Electronics Corporation to move hundreds of 53 - foot high cube container loads

from Puerto Rico to interior points on the U. S. mainland.

History Founded by Malcom McLean, the transportation pioneer who invented containerization more than forty years ago.

Primary business line Engaged in the provision of freight services.

Secondary business line Not available.

Main activity Services.

Secondary activity Not available.

Main products and services Not available.

Size estimate As of December 2006, it operated a fleet of 106 tractors, including 74 company owned units and 32 leased and

owner operator units; 2,880 53’ high cube containers; 2,171 53’ chassis; 305 53’ vehicle transport modules; and

281 high - cube trailer.

Strategy, organization and policy Not available.

Strategic alliances Sensormatic Electronics Corporation.

Membership of a network Not available.

Main brand names Not available.

Main domestic country United States Of America.

Main foreign countries or regions Puerto Rico.

Main production sites Not available.

Main distribution sites United States; Puerto Rico.


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Main sales representation sites Not available.

Main customers Not available.

Auditor/Advisor/Bank

name type address

BDO USA, LLP Auditor -

Computershare Transfer Agent -

Board

name date of birth nationality function

Mr Allen L. Stevens 1943 - -

Mr Douglas E Schimmel - - -

Mr Greggory B Mendenhall - - -

Mr Malcom P Mclean - - -

Mr Robert P Burke - - -

Sharehoders (the first twenty shareholders ordered by Direct %))

MCLEAN MALCOLM P. JR Rating: -

Country ISO code - Operating revenue (MIL $) -

NACE Rev. 2, Core code - Total Assets (MIL $) -

Direct % 12.73 Number of Employees -

Total % - Information date 2009/04

Address: Not available

MENDENHALL GREGGORY B. Rating: -







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MCLEAN PARKER NANCY Rating: -






MCCOWN JOHN D. Rating: -






MCLEAN CLARA L. Rating: -






MCLEAN IRENA Z. Rating: -






FAIRVIEW CAPITAL INVESTMENT MANAGEMENT via its funds Rating: -

Country ISO code US Operating revenue (MIL $) -


Direct % - Number of Employees -

Total % 4.92 Information date 2011/06


WHIPPOORWILL ASSOCIATES INC via its funds Rating: -

Country ISO code US Operating revenue (MIL $) 8


Direct % - Number of Employees 14



DIMENSIONAL FUND ADVISORS LP via its funds Rating: A


NACE Rev. 2, Core code - Total Assets (MIL $) 2,187





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SCHIMMEL DOUGLAS E Rating: -






THOMAS J. HERZFELD ADVISORS, INC. via its funds Rating: -






WILLIAM BLAIR & COMPANY LLC via its funds Rating: -


NACE Rev. 2, Core code - Total Assets (MIL $) 485




ARTIS CAPITAL MANAGEMENT LP via its funds Rating: -






STATE OF CALIFORNIA via its funds Rating: -






NORTHERN TRUST CORPORATION via its funds Rating: -

Country ISO code US Operating revenue (MIL $) 3,648

NACE Rev. 2, Core code - Total Assets (MIL $) 83,844

Direct % - Number of Employees 12,834



BANK OF AMERICA CORPORATION via its funds Rating: -

Country ISO code US Operating revenue (MIL $) 105,927

NACE Rev. 2, Core code - Total Assets (MIL $) 2,264,909

Direct % - Number of Employees 288,000




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Subsidiaries (the first twenty subsidiaries ordered by Direct %)

Not available.


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ASKMORE rating guide

General vision A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of

an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk

factors.

The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial

companies by using data included in financial statements.

The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy

model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the

model are obtained by applying newly developed numerical methodologies, drawing together financial theory,

data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective

algorithm that produces a classification of each company, by taking into account any attributes (such as sector and

country) characterizing a firm.

The model gives the opportunity to assign a rating to a company even without considering a complete data analysis

and allows to process quality information. It induces a better understanding of a company’s strength and weakness

thanks to sophisticated data mining tools and taking into account the analyst knowledge.

The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the

rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium

between the different aspects, better will be the final rating.

This is done studying, evaluating and aggregating the most important sections of the financial and economic

behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.


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Rating scale

Rating class Rating macro class Assessment

AAA

Healthy

The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent

economic and financial flow and fund equilibrium.

AAThe company has very strong creditworthiness. It also has a good capital structure and economic and financial

equilibrium. Difference from AAA is slight.

AThe company has a high solvency. The company is however more susceptible to the adverse effects of changes in

circumstances and economic conditions than companies in higher rated categories.

BBB

Balanced

Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial

commitments could be affected by serious unfavourable events.

BBA company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing

uncertainties or exposure to adverse business, financial, or economic conditions.

B

Vulnerable

The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic

conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments.

CCC

A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial

fundamentals. Adverse market events and an inadequate management could affect with high probability the

company’s solvency.

CC

Risky

The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the

company’s strong disequilibrium could increase.

CThe company shows considerable pathological situations. The company’s capacity to meet its financial

commitments is very low.

D The company has not any longer the capacity to meet its financial commitments.


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Fundamental Credit Rating Ratios

Analysis area Ratio Assessment

Solvency ratios

Leverage ratioThis measures the level of total liabilities of the company in comparison

with equity.

Assets to debtThis indicates company’s solvency. The company shows a level of deficit

when the value of this ratio is under one unit.

Financial ratios Fixed Assets coverage ratioThis is calculated only for holdings. It measures the capital structure i.e.

whether a company covers the fixed assets with long term capital.

Liquidity ratios

Current ratioThis measures whether a company has sufficient short-term assets to cover

its short-term liabilities.

Quick ratioThis compares current liabilities only to those assets that can be readily

turned into cash.

Profitability and economic ratios

Return on Investement(ROI)This measures the profitability of company investments without regard to

the way the investment is financed.

Return on Equity(ROE) This measures the profitability of the equity.

Asset turnover

This indicates the investments turnover with regards to sales. The level

assumed from the ratio depends on the sector in which the company

operates.

Profit margin This indicates the profitability of sales.

Interest coverage ratio Interest Paid coverage

This indicate the ability of the company to cover interest expenses through

the economic margins (Gross profit and EBIT) and through the cash flow

from operating activities.


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MORE Credit Limit, Probability of default and Confidence Level

MORE Credit Limit MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial

relationship with the analyzed company with an outlook of one year.

modeFinance used the following values associated with the company analyzed while computing the credit limit:

• Size;

• Years in Business;

• Average number of suppliers;

• Liquidity of the company and the comparison with its sector;

• The funds dedicated to be paid to suppliers;

• The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).

The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual

public data. This value should be reviewed by paying attention to the Confidence Level value and by using other

information such as other business information, news... etc; and private information such as the relationship with

client, history of payments, guarantees and the knowledge of the sector.

Probability of default e Confidence

Level

In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of

confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go

into default.

As the probability of default is strongly affected by the economic climate that the company is operating in,

companies in the same MORE class will not necessarily have the same probability of default.

The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:

Confidence =

∑Available Information∑

Total Information

The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in

availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the

MORE rating is able to take into account for each company.

For companies with fully populated records a confidence level of 100% would be applied: companies where no

financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.


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Notes and disclaimer

NOTES The present analysis was based on the company available financial statements as provided by Bureau Van Dijk

Electronic Publishing - ORBIS database (lack of both Notes to financial statements and Report on operations).

DISCLAIMER All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any

form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of

the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot

be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will

be based on information gathered in good faith from both primary and secondary sources, whose accuracy we

are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken

based on any information that may subsequently prove to be incorrect.

Contacts

Company modeFinance

Products MORE rating

Where AREA Science Park

34149 Trieste, via Padriciano 99 - ITALY

Info [email protected]

web www.modefinance.com

Phone +39 040 3755337

Trailer Bridge: modeFinace Credit Report

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