Rand Logistics said it expects to report a drop in first-quarter losses in the as the New York-listed laker owner makes good on cost cutting efforts.
The company, which runs a fleet of bulkers on the Great Lakes, said it expects to report a $5.1m loss in earnings before interest, taxes, depreciation and amortisation (ebitda), compared to $10.1m in the same period of last year.
And that's even though the company's fleet sailed just 113 days during the period, down from 256 in the first quarter of last year. Rand Logistics typically posts a loss in the first quarter because of winter ice on the Great Lakes between the US and Canada.
"We were pleased that on a comparable quarter basis we were able to reduce our fiscal fourth quarter ebitda loss by approximately 49.5%," said chief executive Ed Levy. "The improvement in our operating results reflects in part our focus on cost controls and a disciplined operating approach."
The estimated result brings the full fiscal year, which ended 31 March, to ebitda of $32m, which was just a 2.4% decline despite a 13.3% decrease in the value of the Canadian dollar.
Interest expense shrinks
New York-headquartered Rand said its full-year interest expense will decrease by 12% to $11.2m in for the full year.
Levy said the company has found $2m to $4m in annual cost savings.
He added that Rand will operate 13 of its 16 vessels in the 2016 sailing season.
