Cargo volumes for both the BCL service from New Jersey and the SISL service from Florida showed healthy increases. The increases were in both containerized cargo and in Ro/Ro and breakbulk cargo. This increased cargo volume led to an increase in freight revenue. Gross freight revenue at $28,188,000 was up $1,364,000 or 5.08% over the amount generated in 2000 and total revenue at $28,837,000, up $1,528,000. The increase in revenue was all due to volume as BCL reduced a number of freight rates in the latter part of 2000.
Cost control action taken over the last few years bore fruit in 2001 with operating expenses in 2001 being on par with those in 2000 despite the increased cargo volume. Expenses totaled $24,310,000 in 2001 and $24,301,000 in 2000. Key areas where cost savings were achieved - New Jersey stevedoring costs; vessel operating costs and general and administrative expenses.
Dividends declared in 2001 were $2,580,000 up by $1,620,000 or 170%. The increase in dividends was due to a $120,000 or 12.50% increase in regular quarterly dividends and a special year-end dividend of $1,500,000. In addition, a further $2,500,000 was added to the newbuilding reserve bringing this amount to $7,500,000. The newbuilding reserve is to set aside funds for the eventual replacement of the Company's ship, the "Oleander".
Earnings per share for the year were $1.51 compared to $1.25 in 2000 and dividends per share were $0.86 compared to $0.32.
Turning to the outlook for 2002. At the beginning of the year the Company made the decision to reduce a broad range of freight rates. This action was taken because of the excellent financial position of the Company and because of the cost savings that were achieved and further cost savings anticipated in the future. Also, this action improves the competitive position of the Company. And, finally, it offers some relief to those importers feeling the financial impact of the downturn in tourism.
In addition, cargo volume for the first four months of 2002 has declined over the comparable period of 2001 and this was anticipated. Based on preliminary results to date the Company does expect healthy net earnings for 2002 but certainly below the record level recorded in 2001.