FORM 10-Q/A-1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from__________ to __________
Commission file number: 33-82624
MORAN TRANSPORTATION COMPANY
(Exact name of registrant as specified in its charter)
Delaware 04-1299280
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Two Greenwich Plaza
Greenwich, Connecticut 06830
(Address of principal executive offices)
(Zip Code)
(203) 625-7800
(Registrant's telephone number, including area code)
Not Applicable
____________________________
(Former name, former address and former fiscal year, if changed since
last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
________________
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable data.
As of August 11, 1997, 44,600 shares of the common stock, par value
$0.01 per share, of Moran Transportation Company, were issued and
outstanding.
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This amendment to the Quarterly Report on Form 10-Q of Moran
Transportation Company for the fiscal quarter ended June 30, 1997 (the
"Original Form 10-Q) amends and modifies the Original Form 10-Q as follows:
Item 2 of Part I, Management's Discussion and Analysis of Financial
Condition and Results of Operations, is amended by the amendment of the
first paragraph under the caption "Three months ended June 30, 1996
compared to three months ended June 30, 1997" in the section entitled
"RESULTS OF OPERATIONS."
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
RESULTS OF OPERATIONS
Six months ended June 30, 1996 compared to six months ended June 30, 1997
Operating Revenues: Operating revenues increased 18.9% during the first six
months of 1997 as compared to the comparable period in 1996. Tug services
revenues increased by 16.1% to $29.3 million, primarily due to increased
coastwise towing and revenues from the New York City Department of Sanitation
contract which began on July 1, 1996. Marine transportation revenues
increased by 22.9% to $20.7 million reflecting a general improvement in the
barge markets served by the Company, as well as the revenues generated by two
new barges operated by the Company, the barge Portsmouth (placed in service
November, 1996) and the barge Massachusetts (acquired in February, 1997).
Operating Expenses: Operating expenses increased by $7.1 million, or 28.2%,
to $32.1 million in the first six months of 1997. The increase is primarily
due to increased costs for labor, fuel and outside towing due to the
increased activity discussed above. In addition, operating expenses include
lease payments for the barge Portsmouth, which was placed in service in
November 1996. The Company also had higher drydocking amortization expense,
compared to the first half of 1996.
Depreciation: Depreciation expense increased by $0.1 million, to $3.9
million, in the first six months of 1997. This increase was due to additional
depreciation arising from improvements made to assets.
General and Administrative Expenses: General and administrative expenses
increased by $0.3 million, or 3.8%, to $7.3 million in the first six months of
1997. No individual expense categories have increased or decreased materially.
Operating Income: Operating income increased by $0.5 million, or 5.6% to
$6.7 million in the first six months of 1997. This improvement is primarily
due to the increased revenues described above, partially offset by higher
operating and general and administrative costs.
Interest Expense: Interest expense decreased modestly due to the December,
1996 repayment of a term loan entered into in December, 1994.
Equity in income/(loss) in joint venture - Equity income/(loss) from the
Company's joint venture decreased from income of $17,000 in the first half of
1996 to a loss of $268,000 in the first half of 1997. This decrease was due
to lower rates as well as a drydocking of the vessel, which began in the
second quarter of 1997.
Net Income: Net income increased by $0.2 million, to $1.0 million in the
first six months. The improvement in overall profitability was principally
driven by higher operating profit.
Three months ended June 30, 1996 compared to three months ended June 30, 1997
Operating Revenues: Operating revenues increased 18.4% during the second
quarter of 1997 as compared to the comparable period in 1996. Tug services
revenues increased by 11.1%, to $13.9 million, primarily due to revenue from
the New York City Department of Sanitation contract which began on July 1,
1996. Marine transportation revenues increased by 28.9% to $11.3 million
reflecting a general improvement in the barge markets served by the Company,
as well as the revenues generated by two new barges operated by the Company,
the barge Portsmouth (placed in service November, 1996) and the barge
Massachusetts (acquired in February, 1997).
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Operating Expenses: Operating expenses increased by $3.8 million, or 30.3%,
to $16.1 million in the second quarter of 1997. The increase is primarily due
to increased costs for labor, fuel and outside towing due to the increased
activity discussed above. In addition, operating expenses contain the lease
payments for the barge Portsmouth, which was placed in service in November
1996.
General and Administrative Expenses: General and administrative expenses
increased by $0.1 million, or 2.7%, to $3.7 million in the second quarter of
1997. No individual expense categories have increased or decreased materially.
Operating Income: Operating income increased slightly ($30,000), due to the
increased revenues described above, partially offset by higher operating and
general and administrative costs.
Interest Expense: Interest expense decreased modestly due to the December,
1996 repayment of a term loan entered into in December, 1994.
Equity in income/(loss) in joint ventures - Equity income/(loss) from the
Company's joint venture decreased from income of $54,000 in the second
quarter of 1996 to a loss of $171,000 in the second quarter of 1997. This
decrease was due to lower rates as well as a drydocking of the vessel, which
began in the second quarter of 1997.
Net Income: Net income decreased by $0.2 million in the second quarter as
the result of lower equity in income/(loss) in joint venture, partially offset
by slightly higher operating income and lower interest expense.
LIQUIDITY AND CAPITAL RESOURCES
_______________________________
Cash and cash equivalents for the six months ended June 30, 1997 increased by
$0.7 million. This increase was attributable to the factors discussed below:
In the six months ending June 30, 1997, net cash provided by operating
activities was $3.8 million. This was used to fund capital expenditures of
$3.1 million, (including the purchase of the barge Massachusetts), resulting
in a net increase of cash and cash equivalents of $0.7 million.
The Company believes that cash flow from current levels of operations and, to
a lesser extent, availability under the Senior Credit Facility, will be
adequate to make required payments of interest on the Company's indebtedness,
as well as to fund ongoing capital expenditures. The Company renewed its
Senior Credit Facility during the second quarter. It now expires in July,
2000. In connection with this renewal, the parties agreed to certain interest
rate reductions and the addition of a new net worth covenant, among other
changes.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MORAN TRANSPORTATION COMPANY
Date: 8/11/97 By: /s/ Jeffrey J. McAuley
------- ----------------------
Name: Jeffrey J. McAuley
Title: Vice President, Finance
and Administration
(principal financial officer)
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