Rand Logistics Purchases Three Vessels from Wisconsin and Michigan Steamship
14 2월 2008 - 11:08AM
Business Wire
Rand Logistics Inc. (Nasdaq: RLOG; RLOGW; RLOGU) (�Rand�) today
announced that its wholly-owned subsidiary, Grand River Navigation,
has exercised its option to purchase three vessels from Wisconsin
and Michigan Steamship (�WMS�), the David Z., the Earl W. and the
Wolverine, for an all-in cost of approximately $20 million in cash.
One of the three vessels purchased has subsequently been sold to
the Company�s Canadian subsidiary for Canadian registry and
deployment. Rand�s subsidiary, Lower Lakes Transportation, had been
operating the vessels under a long term charter agreement with WMS
since August 1, 2006. The time charter agreement provided Rand the
option of purchasing the vessels at any time during the charter
period. Laurence S. Levy, Chairman and CEO of Rand, said, �By
purchasing the three vessels, we will be able to eliminate both the
operating and accounting complexities associated with the time
charter. This acquisition represents a significant opportunity for
future profit growth through the elimination of duplicate overhead
and the full integration of the vessels into Rand�s fleet,
resulting in more cost efficient operations. By consolidating the
results of these vessels we are able to present a more transparent
financial picture for our business by eliminating the Variable
Interest Entity reporting line from our income statements.� Due to
Lower Lakes� time charter agreement with WMS, WMS was considered a
variable interest entity in accordance with FASB Interpretation
("FIN") 46R, which requires the Company to consolidate certain
entities even though the Company does not hold any ownership
interest in the entity. Following consummation of the acquisition,
financial results for the three vessels will now be consolidated
into Rand�s financial results. About Rand Logistics 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 ten self-unloading bulk carriers,
comprised of nine River Class vessels and one River Class
integrated tug/barge unit, and three conventional bulk carriers, of
which one is operated under a contract of affreightment. The
Company is the only carrier able to offer significant domestic
port-to-port services in both Canada and the U.S. on the Great
Lakes. The Company�s vessels operate under the U.S. Jones Act �
which dictates that only ships that are built, crewed and owned by
U.S. citizens can operate between U.S. ports � and the Canada
Marine Act � which requires Canadian commissioned ships to operate
between Canadian ports. Forward-Looking Statements This press
release may contain forward-looking statements (within the meaning
of the Private Securities Litigation Reform Act of 1995) concerning
the Company and its operating subsidiaries. Forward-looking
statements are statements that are not historical facts, but
instead statements based upon the current beliefs and expectations
of management of the Company. Such forward-looking statements are
subject to risks and uncertainties, which could cause actual
results to differ from the results included in such forward-looking
statements.
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