Net income for the second quarter 2006 was $6.4 million or $.19 per share, compared to a net loss of $(4.1) million, or $(.21) per share in the 2005 second quarter. After adjustment to exclude non-recurring transaction-related expenses associated with a secondary stock offering in 2006 and an initial public stock offering in 2005, adjusted net income was $7.0 million or $.21 per share in the second quarter of 2006, compared to adjusted net income of $4.4 million or $.13 per share in the second quarter of 2005.
Operating revenue increased by $19.3 million or 7.1% to $289.8 million for the second quarter of 2006 versus $270.5 million in the 2005 second quarter. Freight rate and cargo mix improvements more than offset some modest volume softness in the second quarter of 2006 compared to 2005.
Operating income for the second quarter 2006 was $22.4 million compared to $12.0 million in the second quarter of 2005. Absent the non-recurring transaction-related expenses, second quarter 2006 operating income would have been $23.3 million, an increase of $5.1 million or 28.0% over $18.2 million in the second quarter of 2005.
Earnings before interest expense, taxes, depreciation and amortization (EBITDA) was $39.8 million for the second quarter of 2006 compared to $29.3 million for the 2005 second quarter. Excluding the non-recurring transaction-related expenses, EBITDA was $40.7 million in the 2006 second quarter versus $36.0 million in the second quarter of 2005, an improvement of $4.7 million or 13.1%. Please see attached reconciliation from net income to EBITDA.
'The second quarter 2006 was another great one for Horizon Lines,' said Chuck Raymond, President and Chief Executive Officer. 'We produced our 18th consecutive quarter of adjusted EBITDA growth and enjoyed double digit gains in all earnings measures. Our vessel fleet enhancement program is ahead of schedule and we have launched our customer focus and service efficiency program, Horizon Edge. Also, we continue to invest in our container fleet as part of our rolling stock replacement program, with the acquisition of 1,250 new containers in the second quarter. Horizon Lines was again recognized for service excellence, the fourth such customer award in 2006.'
