Payment Brings 4th-Quarter Voluntary Debt Reduction to $17.5 Million
CHARLOTTE, N.C., Nov. 21 /PRNewswire-FirstCall/ -- Horizon Lines, Inc. (NYSE: HRZ), today announced that it has made another voluntary debt reduction payment of $7.5 million on its revolving credit facility. The payment is the third made by Horizon Lines in its fiscal fourth quarter and brings the total voluntary debt reduction to $17.5 million for the quarter and to $40 million since the second quarter. The principal payment reduces borrowings on its $250 million revolving credit facility to $140.0 million, and total debt outstanding to $590.5 million.
"Cash flow in the fourth quarter remains strong, even more so than we expected, and as a result we are repaying another $7.5 million of debt today, which is more than we previously planned," said Mike Avara, Senior Vice President and Chief Financial Officer. "Our stated objective in these unsettled economic times is to use free cash flow to pay down debt, which further strengthens our ability to operate in this environment. We hope to make additional voluntary principal reductions before fiscal year-end, and we continue to expect to generate adjusted EBITDA at or above the midpoint of our guidance range of $120 million to $130 million for the year."
About Horizon Lines
Horizon Lines, Inc. is the nation's leading domestic ocean shipping and integrated logistics company comprised of two primary operating subsidiaries. Horizon Lines, LLC owns or leases a fleet of 21 U.S.-flag containerships and 5 port terminals linking the continental United States with Alaska, Hawaii, Guam, Micronesia and Puerto Rico. Horizon Logistics, LLC offers customized logistics solutions to shippers from a suite of transportation and distribution management services designed by Aero Logistics, information technology developed by Horizon Services Group and intermodal trucking and warehousing services provided by Sea-Logix. Horizon Lines, Inc. is based in Charlotte, NC, and trades on the New York Stock Exchange under the ticker symbol HRZ.
Forward Looking Statements
The information contained in this press release should be read in conjunction with our filings made with the Securities and Exchange Commission. This press release contains "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that do not relate solely to historical fact. They include, but are not limited to, any statement that may predict, forecast, indicate or imply future results, performance, achievements or events. Words such as, but not limited to, "believe," "expect," "anticipate," "estimate," "intend," "plan," "target," "projects," "likely," "will," "would," "could," and similar expressions or phrases identify forward-looking statements.
All forward-looking statements involve risk and uncertainties. In light of these risks and uncertainties, expected results or other anticipated events or circumstances discussed in this press release might not occur. We undertake no obligation, and specifically decline any obligation, to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. See the section entitled "Risk Factors" in our Form 10-K filed with the SEC on February 6, 2008, and in subsequent Form 10-Qs, for a more complete discussion of these risks and uncertainties and for other risks and uncertainties. Those factors and the other risk factors described therein are not necessarily all of the important factors that could cause actual results or developments to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could harm our results. Consequently, there can be no assurance that actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences.
SOURCE Horizon Lines, Inc.
For further information: Jim Storey, Director of Investor Relations & Corporate Communications of Horizon Lines, Inc., +1-704-973-7107, jstorey@horizonlines.com
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