PROSPECTUS SUMMARY
The following summary is qualified in its entirety by the more detailed
information and the financial statements and notes thereto appearing
elsewhere in this Prospectus. Except as otherwise specified, all
information in this Prospectus assumes (i) a 20,000-for-one split of the
shares of Common Stock and (ii) no exercise of the Underwriters' over-
allotment option. See "Underwriting."
The Company
Trailer Bridge, headquartered in Jacksonville, Florida, is an
integrated trucking and marine freight carrier that currently provides
truckload freight transportation primarily between the continental U.S.
and Puerto Rico. Founded in 1991 by transportation pioneer Malcom P.
McLean, the Company combines an efficient and dedicated motor carrier with
a low cost barge and tug marine transportation system. Trailer Bridge is
the only company to operate marine vessels fully configured to carry 48'
and 53' long, 102" wide, "high-cube" trailers. This configuration enables
the Company to achieve equipment utilization rates and other operating
efficiencies not readily available to traditional ocean carriers that
primarily use smaller capacity equipment, such as 40' containers. The
Company believes that as a result of these and other efficiencies, its
total unit costs per mile are the lowest of any carrier operating between
the U.S. and Puerto Rico.
Trailer Bridge intends to achieve significant growth by providing the
lowest cost freight transportation service to markets well suited to its
high-cube integrated truckload and marine freight system. Based on volume
and pricing data, the Company believes there are a number of markets in
which the Company's unique transportation system can provide superior full
load service at a significant cost advantage over existing modes of
truckload and rail intermodal transportation.
Trailer Bridge's differentiated service quickly gained the acceptance
of U.S. to Puerto Rico shippers, leading to rapid growth and high
equipment utilization. In 1993, the Company's first full year of
operation, Trailer Bridge achieved a 93% outbound (U.S. to Puerto Rico)
vessel utilization rate and captured 5% of the U.S. to Puerto Rico marine
freight market. In response to the rapid market share gains experienced
by Trailer Bridge, in 1996 the Company increased its vessel capacity by
56% by inserting midsections ("mid-bodies") into its two existing barges,
increasing the capacity of each barge from 266 to 416 48' equivalent
truckload units.
Trailer Bridge will increase its vessel capacity by an additional 56%
in late 1997 and early 1998 when it takes delivery of two 408' long
container carrying barges designed specifically for the Company's
integrated truckload marine transportation system and bearing the
Company's "Triplestack Box Carrier/TM/" trade name. The Triplestack Box
Carriers/TM/ are versatile, low-draft vessels that have a capacity of 213
53' containers, stacked three-high on a single deck. Construction of
these two vessels began in March 1997 and, upon their completion, they are
expected to be deployed in the Company's existing Puerto Rico freight
operation. Trailer Bridge also intends to contract for the construction
of three additional Triplestack Box Carriers/TM/ which it intends to
deploy in coastwise service between New York and Florida. The Company
also intends to investigate other marine markets which are well suited for
its unique, cost-efficient transportation service, such as from the
continental U.S. to Hawaii or Alaska. Management believes that shippers'
ongoing attempts to reduce distribution costs have resulted in a number of
trends that provide significant growth opportunities for low-cost freight
cargo companies such as Trailer Bridge. These trends include (i) core
carrier consolidation in which shippers "partner" with a small base of
carriers, (ii) intermodalism, as shippers shift between transport sectors,
and (iii) logistics outsourcing.
Management believes that the Company's principal competitive strengths
are:
Significant Operating Cost Advantage. Trailer Bridge believes it is
the lowest cost provider of freight transportation between the U.S. and
Puerto Rico. Lower overall operating costs are achieved through
significantly higher equipment utilization and lower marine linehaul costs
than those of traditional ocean carriers. The Company's inland trucking
operation achieves significantly higher equipment utilization and lower
unit trucking costs by using 48' and 53' high-cube trailers. These
trailers provide customers with over 50% more interior capacity than 40'
marine containers but with similar inland trucking costs. The Company's
marine system uses towed ocean-going barges instead of self-propelled
container ships to deliver equivalent units of capacity at significantly
lower capital and operating costs.
Domestic Truckload Operations. The Company is the only carrier using a
fleet of company-owned and leased tractors and high-cube dry van trailers
to provide transportation services between the continental U.S. and Puerto
Rico. By using high-cube equipment, the mainstay of the domestic
truckload industry, and a centralized dispatch system, the Company can
more effectively compete for and obtain domestic non-Puerto Rico truckload
freight while repositioning equipment for Puerto Rico shipments. As a
result, the Company operates with lower empty miles and higher equipment
utilization than its competitors in the Puerto Rico trade.
Centralized Operation in Strategic Location. Trailer Bridge operates a
centralized truckload operation from its headquarters in Jacksonville.
Because approximately 70% of the Company's truckload freight is dispatched
through Jacksonville on a regular schedule to meet weekly barge sailings
to Puerto Rico, the Company is able to achieve maintenance and other
operating efficiencies and higher driver retention. Additionally, the
Company's centralized Jacksonville headquarters is strategically located
near key southern rail and highway endpoints which connect U.S. cities to
Puerto Rico and other Caribbean points.
Emphasis on U.S. Domestic Ocean Trade. The Company will continue to
concentrate its marine operations in markets protected by the Jones Act.
The Jones Act prevents foreign-built or foreign-crewed vessels from
competing in ocean trade between ports in the U.S., including the non-
contiguous areas of Puerto Rico, Alaska, Hawaii and Guam.
Experienced Management Team. The Company's officers and directors have
extensive experience in the transportation industry, including an average
of over five years with the Company. The scope of management experience
at Trailer Bridge is well balanced between both trucking and marine
transportation.
Trailer Bridge's strategy for continuing its profitable growth includes
(i) increasing capacity in its Puerto Rico service by 56% with the
addition of two new barges called Triplestack Box Carriers/TM/ designed
specifically for the Company to carry 53' containers, (ii) initiating a
new coastwise marine transportation system offering twice-weekly service
from New York to Florida utilizing three Triplestack Box Carriers/TM/ to
be built in 1998, and (iii) initiating marine service to other Jones Act
protected markets such as Hawaii and Alaska and other offshore markets.
Trailer Bridge was incorporated under the laws of Delaware in August
1991. The Company's headquarters is located at 9550 Regency Square Blvd,
Jacksonville, Florida 32225, and its telephone number is (800) 554-1589.
The Offering
Common Stock offered hereby . . . . . . . . . . . ____________ shares
Common Stock to be outstanding
after the offering . . . . . . . . . . . . . . . ____________ shares (1)
Use of Proceeds . . . . . . . . . . . . . . . . . To purchase revenue
equipment, fund a
dividend to existing
stockholders, reduce
indebtedness and
increase working
capital. See "Use of
Proceeds."
Proposed Nasdaq National Market Symbol . . . . . TRBR
(1) Excludes 1,000,000 shares of Common Stock reserved for issuance to
employees under the Company's Incentive Stock Plan (of which options
to purchase 600,000 shares at the initial public offering price have
been granted, subject to consummation of the offering). See
"Management - Incentive Stock Plan."