Rand Logistics, Inc. is a leading provider of bulk freight
shipping services throughout the Great Lakes region. Through its subsidiaries,
the company operates a fleet of four conventional bulk carriers and 11
self-unloading bulk carriers – including three integrated tug/barge units.
Despite the growing national and international presence of logistics giants
such as Old Dominion Freight Line (NASDAQ: ODFL) and FedEx (NYSE: FDX), Rand
has established a viable presence in the shipping industry as the only carrier
able to offer significant domestic port-to-port services in both Canada and the
United States on the Great Lakes. As a result, the company has built a strong
client list that includes global brands such as Koch Industries, Anheuser-Busch
(NYSE: BUD) and Kraft Foods (NASDAQ: KHC).
In recent months, Rand has successfully leveraged its
strategic presence in the logistics market in order to achieve strong financial
growth. During its fiscal quarter ended June 30, the company reported net
income of $2.6 million, realizing a year-over-year increase of 47.6 percent.
This performance was attributable to a collection of factors – including a 19
percent increase in tonnage carried over the previous year, a 5.2 percent
decrease in vessel operating expenses related to a reduction in fuel costs and
an overall increase in total sailing days.
“We were generally pleased with our first quarter results,”
Ed Levy, president and chief executive officer of Rand, stated in a news
release. “Business conditions for the primary commodities that we carry remain
satisfactory, particularly in the river class market where we compete.”
Building on these results, Rand plans to introduce its
newest vessel into service during the fourth quarter of this calendar year.
This new vessel will carry the tonnage currently being handled by a chartered
third-party vessel, providing the company with an opportunity to achieve levels
of profitability that greatly exceed its current benchmarks.
“We remain focused on developing and executing initiatives
to improve our return on invested capital,” continued Levy. “Specifically these
initiatives are intended to drive operational excellence, leverage our market
position, capture cost savings opportunities and improve the efficiency of our
capital spending.”
According to a report by market research firm Kentley
Insights, the coastal and Great Lakes freight transportation industry in the
United States accounted for approximately $7.5 billion in total sales in 2011,
and the industry has achieved an annual growth rate of 6.8 percent in recent
years. For prospective shareholders, this favorable market performance is
expected to provide Rand with a strong platform upon which to promote
sustainable growth. Look for the company to lean on the experience of its
management team in order to capitalize on this opportunity moving forward.
For more information, visit www.randlogisticsinc.com
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Sign up for “The Mission Report” at www.MissionIR.com
Please see disclaimer on the MissionIR website http://www.missionir.com/disclaimer.html
