Trailer Bridge, Inc. (TRBR)

Trailer Bridge, Inc., is an integrated trucking and marine freight carrier, providing truckload freight transportation primarily between the Continental United States and Puerto Rico. Trailer Bridge offers highway transportation between Jacksonville, Fl. and San Juan, Puerto Rico. The company provides southbound containers and trailers, as well as, moves new automobiles, used automobiles, non-containerized or freight not in containers, and freight moving in shipper-owned or leased equipment. Shipments from Puerto Rico include health care products, pharmaceuticals, electronics and recyclables.

TRBR operates a fleet of 106 tractors, including 74 company owned units and 32 leased and owner operator owned units; 2,171 53' trailers; 305 53' vehicle transport modules; and 281 high-cube trailers. TRBR also operates 5 triple deck, roll - on/ roll - off ocean going barges and 5 Triple Stack Box carriers. There are two sailings a week between Jacksonville and San Juan.TRBR was the first to use 53-foot high cube containers to Puerto Rico. This gives shippers over 50% more capacity than a standard 40-foot container.

Trailer Bridge introduced into service the TripleStack Box carriers. These are designed exclusively to carry 53-foot high cube containers. The TBC measures over 400 feet in length and 100 feet wide and can carry 272 containers and are the first vessels built exclusively for trips to Puerto Rico.

Trailer Bridge also uses the Vehicle Transport Module - these 53 - foot long shipping modules are uniquely designed for damage free vehicle transportation and offer multi-modal capability, including truck,rail and water. The VTM's are available in different heights to accomodate regular passenger vehicles , as well as, high profile trucks and sport utiltiy vehicles. Trailer Bridge is also the exclusive shipping for Ford Motor Company for its new car shipments.

Prior to 199, shippers couldn't use the same type of service to over-water destinations. Trailer Bridge uses one network that provides single - carrier service between the United States and Puerto Rico. Trailer Bridge has adapted what works best on the highway, and what works best on the water and linked the two together, allowing TRBR to lower shipping costs and sharing that value with customers.

In Q3 of 2007 Trailer Bridge expanded service into the Dominican Republic. Trailer Bridge is using its TripleStack Box Carrier vessels for this new service between Jacksonville, Fl. and San Juan to Puerto Plata, Dominican Republic. This service represents a 21% capacity increase for TRBR. The Dominican Republic has a $74 billion economy that grew 7.2% in 2006.

With the high cube 53 foot containers, Trailer Bridge has efficiency gains from loading on and off vessels, the largest efficiency gains result from inland transit. Additional efficiency comes through fewer loads resulting in:

Overall savings in local Puerto Rico dray costs
Overall savings in dock loading/unloading
Overall savings in fuel surcharges/accessorials

The difference between using a tug/barge versus a self-propelled vessel is;

Less than1/3 the crew
1/2 the fuel consumption per mile
Lighter environmental footprint
Lower construction and maintenance costs
More conducive to moving larger freight
Significantly lower overall cost per unit mile at sea
Tug/barges moved less than 1/3 of all freight 15 years ago. Today, tug/barges move more than 50%

Additional market opportunities for TRBR are;

Hawaii
Alaska
Cuba

Most recent financials;

Revenue (ttm): 115.7M
Gross profit (ttm) 14.96M
Qtrly Revenue Growth (yoy): 1.30%
Total cash (ttm): 1.93M
Total debt (ttm): 108.11M
Operating cash flow (ttm): 12.59M
Levered freecash (ttm): -5.62M
P/E: 14.39

The question is not whether Fidel Castro will die. Castro will die. It's only a question of when. Eventually, this will open the entire Cuban market to US suppliers of goods who will need to ship even the most basic of needs to Cuba which from neglect no longer has any fully functional deep water ports. TRBR is ideal for serving this market.