8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 23, 2009

HORIZON LINES, INC.

(Exact name of registrant as specified in its Charter)

Delaware	001-32627	74-3123672
(State or Other Jurisdiction of Organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

4064 Colony Road, Suite 200
Charlotte, North Carolina 28211
(Address of Principal Executive Offices, including Zip Code)

(704) 973-7000
(Registrant’s telephone number, including area code)

N/A
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 2.02. Results of Operations and Financial Condition.
	Item 7.01. Regulation FD Disclosure.
	Item 8.01. Other Events.
	Item 9.01 Financial Statements and Exhibits.
SIGNATURES
Exhibit Index
EX-99.1
EX-99.2
EX-99.3
EX-99.4

Item 2.02. Results of Operations and Financial Condition.

     On July 24, 2009, Horizon Lines, Inc. (the “Company”) issued a press release announcing its financial results for the second fiscal quarter ended June 21, 2009 and held a conference call to discuss its financial results and outlook for the remainder of fiscal 2009. A copy of the press release is filed as Exhibit 99.1 hereto, a copy of the transcript of the conference call is filed as Exhibit 99.2 hereto and a copy of the second quarter 2009 earnings release presentation is attached as Exhibit 99.3 hereto. Each of these exhibits is incorporated herein by reference.

     The information under Items 2.02 and 7.01 in this Current Report, and Exhibits 99.1, 99.2 and 99.3 hereto, are being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall this information be deemed incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 7.01. Regulation FD Disclosure.

     The disclosure under Item 2.02 of this Current Report on Form 8-K is incorporated herein by reference.

Item 8.01. Other Events.

     On July 23, 2009, the Company issued a press release announcing that its Board of Directors has voted to declare a cash dividend on its outstanding shares of common stock of $0.11 per share, payable on September 15, 2009 to all stockholders of record as of the close of business on September 1, 2009. A copy of this press release is attached as Exhibit 99.4 hereto and incorporated by reference.

SAFE HARBOR STATEMENT

     The information contained in this Current Report on Form 8-K (including the exhibits hereto) should be read in conjunction with our filings made with the Securities and Exchange Commission. This Current Report on Form 8-K (including the exhibits hereto) 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,” “targets,” “projects,” “likely,” “will,” “would,” “could” and similar expressions or phrases identify forward-looking statements.

     All forward-looking statements involve risk and uncertainties. The occurrence of the events described, and the achievement of the expected results, depend on many events, some or all of which are not predictable or within our control. Actual results may differ materially from expected results.

     Factors that may cause actual results to differ from expected results include: decreases in shipping volumes; final approval by the court of the settlement agreement with the plaintiffs in the Puerto Rico MDL litigation; legal or other proceedings to which we are or may become subject, including the Department of Justice antitrust investigation and related legal proceedings; changes in tax laws or in their interpretation or application (including the repeal of the application of the tonnage tax to our trade in any one of our applicable shipping routes); rising fuel prices; our substantial debt; restrictive covenants under our debt agreements; our failure to renew our commercial agreements with Maersk; labor interruptions or strikes; job related claims, liability under multi-employer pension plans; compliance with safety and environmental protection and other governmental requirements; new statutory and regulatory directives in the United States addressing homeland security concerns; the successful start-up of any Jones-Act competitor; increased inspection procedures and tighter import and export controls; restrictions on foreign ownership of our vessels; repeal or substantial amendment of the coastwise laws of the United States, also known as the Jones Act; escalation of insurance costs, catastrophic losses and other liabilities; the arrest of our vessels by maritime claimants; severe weather and natural disasters; our inability to exercise our purchase options for our chartered vessels; the aging of our vessels; unexpected substantial dry-docking costs for our vessels; the loss of our key management personnel; actions by our stockholders; and adverse tax audits and other tax matters.

     In light of these risks and uncertainties, expected results or other anticipated events or circumstances discussed in this Form 8-K might not occur. We undertake no obligation, and specifically decline any obligation, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

     See the section entitled “Risk Factors” in our Form 10-K for the fiscal year ended December 21, 2008, as filed with the SEC for a more complete discussion of the above mentioned 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 to, or effects on, us. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements.

NON-GAAP FINANCIAL MEASURES

     Item 2.02 and 7.01, and Exhibits 99.1, 99.2 and 99.3 hereto, contain the following financial measures: adjusted net income, adjusted net income per diluted share, adjusted operating income, free cash flow, adjusted free cash flow, adjusted operating expense, adjusted

other expense, adjusted income tax expense, adjusted pretax income, adjusted earnings per share, adjusted earnings per diluted share and adjusted operating ratio, as well as EBITDA and adjusted EBITDA on a consolidated basis and for the Company’s shipping and logistics business segments. These are non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission.

     The Company uses adjusted net income, adjusted net income per diluted share, adjusted operating income, adjusted operating expense, adjusted other expense, adjusted income tax expense, adjusted pretax income and adjusted earnings per diluted share to exclude unusual items. The Company defines free cash flow as EBITDA adjusted to exclude certain non-cash items less working capital changes, capital expenditures, interest, and drydock expenditures, EBITDA as net income plus net interest expense, income taxes, depreciation and amortization and adjusted EBITDA as net income plus net interest expense, income taxes, depreciation and amortization adjusted to exclude unusual items.

     The Company believes that these non-GAAP financial measures provide information that is useful to the Company’s investors. The Company believes that this information is helpful in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportional positive or negative impact on the Company’s results of operations in any particular period. Additionally, the Company uses these non-GAAP measures to evaluate its past performance and prospects for future performance. The Company also utilizes certain of these measures to compensate certain personnel of the Company.

     The Company believes that EBITDA is a meaningful measure for investors as (i) EBITDA is a component of the measure used by the Company’s board of directors and management team to evaluate the Company’s operating performance, (ii) the senior credit facility contains covenants that require the Company to maintain certain interest expense coverage and leverage ratios, which contain EBITDA, and (iii) EBITDA is a measure used by the Company’s management team to make day-to-day operating decisions. EBITDA for the Company’s business segments is used by the Company’s internal decision makers to evaluate segment operating performance. The Company believes adjusted free cash flow provides supplemental information about the Company’s ability to service debt and pay dividends to its investors.

     The Company also uses a non-GAAP net income measure on a per diluted share basis. The Company believes that it is important to provide per share information, in addition to absolute dollar measures, when describing its business, including when presenting non-GAAP measures.

     The Company uses adjusted financial measures to exclude certain items in order to illustrate the affect of those items on the financial performance of the Company. Adjusted financial measures are the measures used by management to compare operating results and to evaluate operating performance.

     The financial measures adjusted net income, adjusted net income per diluted share, adjusted operating income, free cash flow, adjusted free cash flow, adjusted operating expense, adjusted other expense,

adjusted income tax expense, adjusted pretax income, adjusted earnings per share, adjusted earnings per diluted share, adjusted operating ratio, EBITDA and Adjusted EBITDA are not recognized terms under GAAP and do not purport to be alternatives to net income or earnings per share as a measure of earnings or free cash flow as a measure of cash flow for management’s discretionary use, as they do not consider certain cash requirements such as dividend payments and debt service requirements. Because all companies do not use identical calculations, these presentations of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.

     Reconciliations of the non-GAAP measures to the most directly comparable GAAP measures are provided in the press release and the Earnings Release Presentation filed as Exhibits 99.1 and 99.3, respectively.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1	Press Release of Horizon Lines, Inc., dated July 24, 2009.
99.2	Transcript of conference call held on July 24, 2009.
99.3	Earnings Release Presentation for the Second Fiscal Quarter Ended June 21, 2009.
99.4	Press Release of Horizon Lines, Inc., dated July 23, 2009.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	HORIZON LINES, INC. (Registrant)
Date: July 29, 2009	By:	/s/ Michael T. Avara
		Michael T. Avara
		Senior Vice President and Chief Financial Officer

Exhibit Index

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1	Press Release of Horizon Lines, Inc., dated July 24, 2009.
99.2	Transcript of conference call held on July 24, 2009.
99.3	Earnings Release Presentation for the Second Fiscal Quarter Ended June 21, 2009.
99.4	Press Release of Horizon Lines, Inc., dated July 23, 2009.

EX-99.1

Exhibit 99.1

PRESS RELEASE

For information contact:
Jim Storey
Director of Investor Relations & Corporate Communications
704.973.7107
jstorey@horizonlines.com

HORIZON LINES REPORTS SECOND-QUARTER FINANCIAL RESULTS

• Container Volumes Down 9.8%; Container Rates Net of Fuel up 2.5%

• Adjusted EBITDA of $28.5 Million

CHARLOTTE, NC, July 24, 2009 — Horizon Lines, Inc. (NYSE: HRZ), today reported results for its fiscal second quarter ended June 21, 2009.

On a GAAP basis, the company reported a net loss of $(31.1) million, or $(1.02) per share, on revenue of $278.5 million. The results reflect certain items, including a $20 million charge related to the previously disclosed class-action legal settlement in Puerto Rico, and a $10.5 million tax valuation allowance. After excluding these and other charges totaling $35.2 million, or $1.15 per share after tax, adjusted net income was $4.1 million, or $0.13 per fully diluted share.

The company recorded the valuation allowance for book tax purposes against its deferred tax assets due to projected cumulative pre-tax GAAP losses for the three-year period ending in 2009. However, the previous years’ pre-tax book losses include significant loss on debt extinguishment in connection with the August 2007 refinancing and recent expenses related to the anti-trust investigation. The valuation allowance has no cash impact and does not affect the company’s ability to utilize its deferred tax assets to offset taxable income in future years as the company’s net operating losses do not begin to expire until 2019 and 2024 for state and federal purposes, respectively.

In addition to the items related to the Puerto Rico class-action settlement and the tax valuation allowance, adjusted 2009 second-quarter results exclude antitrust-related legal expenses of $4.1million, and $0.9 million for impairment and restructuring charges, as well as a loss on debt modification.

Net income for the second quarter of 2008 totaled $5.8 million, or $0.19 per diluted share, on revenue of $331.0 million. Adjusted 2008 second-quarter net income totaled $8.5 million, or $0.28 per fully diluted share, after excluding anti-trust related legal expenses and a severance charge totaling $3.2 million pretax, or $0.09 per share after tax.

Horizon Lines 2nd Quarter 2009 Page 2 of 14

Comparison of GAAP and Non-GAAP Earnings (in millions, except per share data)*

	Quarters Ended					Six Months Ended
	6/21/09			6/22/08		6/21/09			6/22/08
GAAP:
Operating revenue	$	278.5		$	331.0	$	550.8		$	636.9
Net (loss) income (1)	$	(31.1	)	$	5.8	$	(41.0	)	$	6.6
Net (loss) income per diluted share (1)	$	(1.02	)	$	0.19	$	(1.35	)	$	0.21
Non-GAAP:
EBITDA	$	3.5		$	32.6	$	17.5		$	59.9
Adjusted EBITDA*	$	28.5		$	35.8	$	47.7		$	63.1
Adjusted Net income*	$	4.1		$	8.5	$	(0.6	)	$	9.2
Adjusted Net income per diluted share*	$	0.13		$	0.28	$	(0.02	)	$	0.30

*	See attached schedules for reconciliation of second-quarter 2009 and 2008 reported GAAP results to Non-GAAP results.
(1)	Net income for the 2008 second-quarter and six-month period is adjusted for retrospective application of changes in accounting for convertible notes; and restricted stock share-based payment awards as participating securities.

“Our company experienced weak volumes in all tradelanes during the second quarter, as the unabated global recession continued to dampen consumer sentiment and spending throughout our markets,” said Chuck Raymond, Chairman, President and Chief Executive Officer. “We combated these challenges through continued focus on customer service excellence, schedule integrity, and cost reductions throughout the organization. While revenue and adjusted EBITDA for the quarter were below internal expectations, we achieved better-than-expected cash flow relative to EBITDA, earned a 2.5% container rate increase, net of fuel, and estimate that market share in each of our tradelanes held steady and in some cases improved slightly. We finished the second quarter with adequate corporate liquidity and in compliance with our credit facility financial covenants.

“Our volume levels compare very favorably to other transportation segments and reflect our focus on U.S. domestic ocean markets, where we play a primary role in delivering cargo that is vital to the basic needs of our tradelanes,” Mr. Raymond said. “We serve these markets with operational excellence and devotion to our customers, who include diverse, large, brand-name companies.

“The company’s logistics business continued to be adversely impacted by the economic recession,” Mr. Raymond noted. “Our ongoing strategy is to organically position this business to be able to capitalize on targeted growth opportunities when the economy rebounds. In the meantime, we are focused on accelerating revenue growth and more fully leveraging our Liner sales force in the logistics sales process.

Horizon Lines 2nd Quarter 2009 Page 3 of 14

“During the quarter, we reached an agreement to settle class action antitrust litigation in Puerto Rico and at the same time executed an amended credit agreement with our lender group, as we previously disclosed” Mr. Raymond said. “We also continue to fully cooperate with the Department of Justice in its investigation into pricing practices in domestic ocean shipping.”

Second-Quarter 2009 Financial Highlights

• Operating Revenue — Operating revenue declined 15.9% to $278.5 million from $331.0 million a year ago. The largest factors in the $52.5 million revenue decline were a $27.8 million reduction in fuel surcharges, and a $27.7 million decrease from a 9.8% reduction in volume. The volume decline was due to weak market conditions across all tradelanes; specifically, a decline in visitors and construction in Hawaii, the ongoing recession in Puerto Rico, and recessionary worries that curbed consumer spending in Alaska. The volume decline was partially offset by increased revenue per container, which was driven by both rate and mix improvements. Second-quarter revenue per container, net of fuel, increased 2.5% to $3,293 from the prior year.

• Operating (Loss) Income — The GAAP operating loss for the second quarter of 2009 totaled $(11.2) million, compared with operating income of $16.7 million for the second quarter of 2008. The 2009 GAAP operating loss includes expenses of $24.9 million that are excluded from adjusted operating income. These consist of $20 million for the settlement of class action litigation in Puerto Rico, $4.1 million for antitrust-related legal expenses, and $0.9 million for additional impairment and restructuring charges. The 2008 GAAP operating loss includes expenses of $3.2 million that are excluded from adjusted operating income. These consist of $2.4 million in antitrust-related legal expenses and $0.8 million in severance costs related to early retirement for certain union employees. Excluding these items, adjusted operating income totaled $13.7 million for the second quarter of 2009, and $19.9 million for the prior year’s second quarter. The decline from last year was largely due to reduced volumes and lower non-transportation revenue, which were partially offset by reduced fuel costs and non-union workforce reductions.

• EBITDA — EBITDA totaled $3.5 million for the 2009 second quarter, compared with $32.6 million for the same period a year ago. Adjusted EBITDA for the 2009 second quarter was $28.5 million, compared with $35.8 million for 2008. EBITDA and adjusted EBITDA for the 2009 and 2008 second quarters were impacted by the same factors affecting operating income.

• Shares Outstanding — The company had a weighted daily average of 30.4 million shares outstanding for the second quarter of 2009, compared with 30.3 million for the second quarter of 2008.

• Six-Month Results — For the six months ended June 21, 2009, operating revenue decreased 13.5% to $550.8 million from $636.9 million for the same period in 2008.

Horizon Lines 2nd Quarter 2009 Page 4 of 14

EBITDA totaled $17.5 million compared with $59.9 million a year ago. Adjusted EBITDA, excluding the items previously mentioned as well as a 2009 first -quarter restructuring charge of $0.8 million and antitrust legal expenses of $4.4 million, totaled $47.7 million versus $63.1 million for 2008. The 2009 six-month net loss totaled $(41.0) million, or $(1.35) per share, compared with net income of $6.6 million, or $0.21 per diluted share for the same period a year earlier. The 2009 adjusted net loss totaled $(0.6) million, or $(0.02) per share, compared with adjusted net income of $9.2 million, or $0.30 per diluted share, a year ago.

Please see attached schedules for reconciliation of second-quarter 2009 and 2009 reported GAAP results and Non-GAAP adjusted results.

Outlook

“Challenges continue across our markets, which all have been impacted in varying degrees by the global recession,” Mr. Raymond said. “Horizon Lines remains well positioned to continue operating successfully in this extended recessionary environment. Our 2009 business plan contemplated a deep and protracted recession. We implemented necessary cost-reduction measures early on and have other measures that we can execute quickly if the economy worsens appreciably in future months. We are intensely focused on serving our customers while continuing to remove costs from the organization. While we have somewhat tempered our EBITDA expectations relative to last year, we believe our markets are stabilizing modestly and we anticipate that adjusted EBITDA for 2009 will remain above levels that would jeopardize our compliance with financial covenants in our credit agreement. As we move through the second half of the year and beyond, we are confident that Horizon Lines is operating on a foundation of financial stability and with adequate liquidity.”

Webcast & Conference Call Information

Company executives will provide additional perspective on the company’s earnings during a conference call beginning at 11:00 a.m. Eastern Time today. Those interested in participating in the call may do so by dialing 1-866-394-6819, and providing the operator with conference number 18881354. A hardcopy of the presentation materials may be printed from the Horizon Lines website, http://www.horizonlines.com, shortly before the start of the call. Alternatively, a live audio webcast of the call may be accessed at http://www.horizonlines.com. In order to access the live audio webcast, please allow at least 15 minutes before the start of the call to visit Horizon Lines’ website and download and install any necessary audio/video software for the webcast.

Use of Non-GAAP Measures

Horizon Lines reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). The company also believes that the presentation of certain non-GAAP measures, i.e., results excluding certain costs and expenses, provides useful information for the understanding of its ongoing operations and enables investors to focus on period-over-period operating performance without the impact of significant special items, and thereby enhances the user’s overall understanding of the company’s current financial performance relative to past performance and provides a better baseline for

Horizon Lines 2nd Quarter 2009 Page 5 of 14

modeling future earnings expectations. Non-GAAP measures are reconciled in the financial tables accompanying this news release. The company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for, the company’s reported GAAP results.

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 operates five 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, 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 5, 2009, 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.

(Tables Follow)

Horizon Lines 2nd Quarter 2009 Page 6 of 14

Horizon Lines, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands, except per share data)

				December 21,
	June 21,			2008
	2009			(As Adjusted) (1)
Assets
Current assets
Cash	$	3,678		$	5,487
Accounts receivable, net of allowance of $7,879 and $8,217 at June 21, 2009 and December 21, 2008, respectively		134,636			135,299
Deferred tax asset		2,558			7,450
Prepaid vessel rent		10,575			4,471
Materials and supplies		26,464			23,644
Other current assets		10,060			10,424
Total current assets		187,971			186,775
Property and equipment, net		202,013			208,453
Goodwill		317,068			317,068
Intangible assets, net		117,372			125,542
Deferred tax asset		—			10,669
Other long-term assets		26,360			24,122
Total assets	$	850,784		$	872,629
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	38,841		$	41,947
Current portion of long-term debt		12,802			6,552
Accrued vessel rent		—			5,421
Other accrued liabilities		111,104			97,720
Total current liabilities		162,747			151,640
Long-term debt, net of current		546,640			526,259
Deferred rent		24,821			27,058
Deferred tax liability		3,696			—
Other long-term liabilities		19,884			30,836
Total liabilities		757,788			735,793
Stockholders’ equity
Preferred stock, $.01 par value, 30,500 shares authorized; no shares issued or outstanding		—			—
Common stock, $.01 par value, 100,000 shares authorized, 34,024 shares issued and 30,224 shares outstanding as of June 21, 2009 and 33,808 shares issued and 30,008 shares outstanding as of December 21, 2008		340			338
Treasury stock, 3,800 shares at cost		(78,538	)		(78,538	)
Additional paid in capital		202,257			199,644
(Accumulated deficit) retained earnings		(25,635	)		22,094
Accumulated other comprehensive loss		(5,428	)		(6,702	)
Total stockholders’ equity		92,996			136,836
Total liabilities and stockholders’ equity	$	850,784		$	872,629

(1) Results are adjusted for retrospective application of changes in accounting for convertible notes and restricted stock share-based payment awards as participating securities.

Horizon Lines 2nd Quarter 2009 Page 7 of 14

Horizon Lines, Inc.
Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)

	Quarters Ended					Six Months Ended
				June 22,					June 22,
	June 21,			2008		June 21,			2008
	2009			(As Adjusted) (1)		2009			(As Adjusted) (1)
Operating revenue	$	278,484		$	330,958	$	550,835		$	636,905
Operating expense:
Cost of services (excluding depreciation expense)		226,339			268,699		455,998			521,669
Depreciation and amortization		11,165			11,550		22,140			22,875
Amortization of vessel dry-docking		3,609			4,400		7,407			8,775
Selling, general and administrative		28,006			28,873		55,774			54,004
Settlement of class action lawsuit		20,000			—		20,000			—
Restructuring charge		213			—		1,001			—
Impairment charge		659					659
Miscellaneous (income) expense, net		(300	)		752		(119	)		1,297
Total operating expense		289,691			314,274		562,860			608,620
Operating (loss) income		(11,207	)		16,684		(12,025	)		28,285
Other expense:
Interest expense, net		9,254			10,353		18,686			21,513
Loss on modification of debt		50			—		50			—
Other income, net		11			4		10			1
(Loss) income before income tax expense		(20,522	)		6,327		(30,771	)		6,771
Income tax expense		10,561			493		10,264			212
Net (loss) income	$	(31,083	)	$	5,834	$	(41,035	)	$	6,559
Net (loss) income per share:
Basic	$	(1.02	)	$	0.19	$	(1.35	)	$	0.21
Diluted
	$	(1.02	)	$	0.19	$	(1.35	)	$	0.21
Number of shares used in calculation:
Basic		30,438			30,193		30,431			30,343
Diluted		30,438			30,273		30,431			30,582
Dividends declared per common share	$	0.11		$	0.11	$	0.22		$	0.22

(1) Results are adjusted for retrospective application of changes in accounting for convertible notes and restricted stock share-based payment awards as participating securities.

Horizon Lines 2nd Quarter 2009 Page 8 of 14

Horizon Lines, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)

	Six Months
				June 22,
	June 21,			2008
	2009			(As Adjusted)(1)
Cash flows from operating activities:
Net (loss) income	$	(41,035	)	$	6,559
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation		11,824			12,211
Amortization of other intangible assets		10,316			10,664
Amortization of vessel dry-docking		7,407			8,775
Restructuring charge		1,001			—
Impairment charge		659			—
Loss on modification of debt		50			—
Amortization of deferred financing costs		1,209			1,347
Deferred income taxes		10,357			382
Gain on equipment disposals		(291	)		(23	)
Stock-based compensation		1,919			2,377
Accretion of interest on 4.25% convertible notes		4,905			4,357
Changes in operating assets and liabilities:
Accounts receivable		663			(18,425	)
Materials and supplies		(3,070	)		(4,118	)
Other current assets		150			435
Accounts payable		(3,106	)		(11,913	)
Accrued liabilities		12,780			22,786
Vessel rent		(13,361	)		(12,670	)
Vessel dry-docking payments		(8,593	)		(6,544	)
Other assets/liabilities		(992	)		362
Net cash (used in) provided by operating activities		(7,208	)		16,562
Cash flows from investing activities:
Purchases of property and equipment		(7,154	)		(7,462	)
Purchase of business		—			(198	)
Proceeds from the sale of property and equipment		853			208
Net cash used in investing activities		(6,301	)		(7,452	)
Cash flows from financing activities:
Borrowing under revolving credit facility		45,000			73,000
Payments on revolving credit facility		(20,000	)		(25,000	)
Payments on long-term debt		(3,275	)		(3,267	)
Dividends to stockholders		(6,694	)		(6,649	)
Payments of financing costs		(3,406	)		(137	)
Common stock issued under employee stock purchase plan		75			10
Purchase of treasury stock		—			(29,330	)
Payments on capital lease obligation		—			(60	)
Net cash provided by financing activities		11,700			8,567
Net decrease in cash		(1,809	)		17,677
Cash at beginning of year		5,487			6,276
Cash at end of year	$	3,678		$	23,953

(1) Results are adjusted for retrospective application of changes in accounting for convertible notes and restricted stock share-based payment awards as participating securities.

Horizon Lines 2nd Quarter 2009 Page 9 of 14

Horizon Lines, Inc.
Adjusted Operating Income
($ in Millions)

	Quarter Ended			Quarter Ended		Six Months Ended			Six Months Ended
	June 21, 2009			June 22, 2008		June 21, 2009			June 22, 2008
Operating (Loss) Income	$	(11.2	)	$	16.7	$	(12.0	)	$	28.3
Adjustments:
Legal Settlement		20.0			—		20.0			—
Anti-Trust Legal Expenses		4.1			2.4		8.5			2.4
Impairment Charge		0.6			—		0.6			—
Restructuring Charge		0.2			—		1.0			—
OPEIU Severance		—			0.8		—			0.8
Total Adjustments		24.9			3.2		30.1			3.2
Adjusted Operating Income	$	13.7		$	19.9	$	18.1		$	31.5

Horizon Lines 2nd Quarter 2009 Page 10 of 14

Horizon Lines, Inc.
Adjusted Net (Loss) Income
($ in Millions)

	Quarter Ended			Quarter Ended			Six Months Ended			Six Months Ended
	June 21, 2009			June 22, 2008			June 21, 2009			June 22, 2008
Net (Loss) Income (1)	$	(31.1	)	$	5.8		$	(41.0	)	$	6.6
Adjustments:
Legal Settlement		20.0			—			20.0			—
Anti-Trust Legal Expenses		4.1			2.4			8.5			2.4
Impairment Charge		0.6			—			0.6			—
Restructuring Charge		0.2			—			1.0			—
Loss on Modification of Debt		0.1			—			0.1			—
OPEIU Severance		—			0.8			—			0.8
Tax Valuation Allowance		10.5			—			10.5			—
Tax Impact of Adjustments		(0.3	)		(0.5	)		(0.3	)		(0.6	)
Total Adjustments		35.2			2.7			40.4			2.6
Adjusted Net (Loss) Income	$	4.1		$	8.5		$	(0.6	)	$	9.2

(1) 2008 results are adjusted for retrospective application of changes in accounting.

Horizon Lines 2nd Quarter 2009 Page 11 of 14

Horizon Lines, Inc.
Adjusted Net (Loss) Income Per Diluted Share

	Quarter Ended			Quarter Ended			Six Months Ended			Six Months Ended
	June 21, 2009			June 22, 2008			June 21, 2009			June 22, 2008
Net (Loss) Income Per Diluted Share (1)	$	(1.02	)	$	0.19		$	(1.35	)	$	0.21
Adjustments Per Share:
Legal Settlement		0.65			—			0.66			—
Anti-Trust Legal Expenses		0.14			0.08			0.29			0.08
Impairment Charge		0.02			—			0.02			—
Restructuring Charge		0.01			—			0.03			—
Loss on Modification of Debt		—			—			—			—
OPEIU Severance		—			0.03			—			0.03
Tax Valuation Allowance		0.34			—			0.34			—
Tax Impact of Adjustments		(0.01	)		(0.02	)		(0.01	)		(0.02	)
Total Adjustments		1.15			0.09			1.33			0.09
Adjusted Net (Loss) Income	$	0.13		$	0.28		$	(0.02	)	$	0.30

(1) 2008 results are adjusted for retrospective application of changes in accounting for convertible notes and restricted stock share-based payment awards as participating securities.

Horizon Lines 2nd Quarter 2009 Page 12 of 14

Horizon Lines, Inc.
Net Income / EBITDA / Adjusted EBITDA Reconciliation
($ in Millions)

	Quarter Ended			Quarter Ended		Six Months Ended			Six Months Ended
	June 21, 2009			June 22, 2008		June 21, 2009			June 22, 2008
Net (Loss) Income (1)	$	(31.1	)	$	5.8	$	(41.0	)	$	6.6
Interest Expense, Net		9.2			10.4		18.7			21.5
Tax Expense		10.6			0.5		10.3			0.2
Depreciation and Amortization		14.8			15.9		29.5			31.6
EBITDA		3.5			32.6		17.5			59.9
Legal Settlement		20.0			—		20.0			—
Anti-Trust Legal Fees		4.1			2.4		8.5			2.4
Impairment Charge		0.6			—		0.6			—
Restructuring Charge		0.2			—		1.0			—
Loss on Modification of Debt		0.1			—		0.1			—
OPEIU Severance		—			0.8		—			0.8
Adjusted EBITDA	$	28.5		$	35.8	$	47.7		$	63.1

(1) 2008 results are adjusted for retrospective application of changes in accounting for convertible notes and restricted stock share-based payment awards as participating securities.

Note: EBITDA is defined as net income plus net interest expense, income taxes, depreciation and amortization. We believe that EBITDA is a meaningful measure for investors as (i) EBITDA is a component of the measure used by our board of directors and management team to evaluate our operating performance, (ii) the senior credit facility contains covenants that require the Company to maintain certain interest expense coverage and leverage ratios, which contain EBITDA, and (iii) EBITDA is a measure used by our management team to make day-to-day operating decisions. Adjusted EBITDA excludes certain charges in order to evaluate our operating performance, for making day-to-day operating decisions and when determining the payment of discretionary bonuses.

Horizon Lines 2nd Quarter 2009 Page 13 of 14

Horizon Lines, Inc.
Operating Income to Adjusted EBITDA Segment Reconciliation
($ in Millions)

Second Quarter 2009

	Liner			Logistics			Consolidated
Operating Loss	$	(8.8	)	$	(2.4	)	$	(11.2	)
Depreciation and Amortization		11.0			0.1			11.1
Amortization of Vessel Dry-docking		3.6			—			3.6
EBITDA		5.8			(2.3	)		3.5
Legal Settlement		20.0			—			20.0
Anti-Trust Legal Expenses		4.1			—			4.1
Impairment Charge		0.6			—			0.6
Restructuring Charge		—			0.2			0.2
Loss on Modification of Debt		0.1			—			0.1
Adjusted EBITDA	$	30.6		$	(2.1	)	$	28.5

Horizon Lines 2nd Quarter 2009 Page 14 of 14

Horizon Lines, Inc.
Operating Income to Adjusted EBITDA Segment Reconciliation
($ in Millions)

Six Months 2009

	Liner			Logistics			Consolidated
Operating Loss	$	(7.2	)	$	(4.8	)	$	(12.0	)
Depreciation and Amortization		21.9			0.2			22.1
Amortization of Vessel Dry-docking		7.4			—			7.4
EBITDA		22.1			(4.6	)		17.5
Legal Settlement		20.0			—			20.0
Anti-Trust Legal Expenses		8.5			—			8.5
Impairment Charge		0.6			—			0.6
Restructuring Charge		0.8			0.2			1.0
Loss on Modification of Debt		0.1			—			0.1
Adjusted EBITDA	$	52.1		$	(4.4	)	$	47.7

# # #

EX-99.2

Exhibit 99.2

On July 24, 2009, Horizon Lines, Inc. hosted a conference call to discuss financial results for the second quarter ended June 21, 2009. The following transcript is an interpretation of the statements made on the call. The actual conference call may have differed slightly.

Operator	Good morning. My name is Michael and I will be your conference operator today. At this time, I would like to welcome everyone to the Horizon Lines second-quarter earnings release conference call. All lines have been placed on mute to prevent any background noise. After the speakers’ presentation, there will be a question-and-answer session. Thank you. I would now like to introduce Mr. Jim Storey, Director of Investor Relations for Horizon Lines. Mr. Storey, you may begin your conference.
Jim Storey	Thank you, Michael and good morning, everyone and welcome to Horizon Lines’ second-quarter 2009 conference call. Our speakers this morning are Chuck Raymond, Chairman, President and Chief Executive Officer; John Keenan, President of our liner company; Brian Taylor, President of our logistics company; and Mike Avara, our Chief Financial Officer. Also on hand today is Catherine Walsh, our Vice President and Controller.
	Before we get started, I want to remind everyone that copies of our press release and the slide presentation accompanying this conference call are available in the Investor Relations section of our website at horizonlines.com. We will be referring to these slides during our remarks.
	I also want to remind everyone that management’s comments this morning contain certain forward-looking statements and that actual results could differ materially from those projected today. A discussion of factors that might affect future results is provided in our filings with the SEC and we encourage you to review them. Now let me turn the call over to Chuck Raymond.
Chuck Raymond	Well, thanks, Jim and good morning. Earlier today, we reported second-quarter financial results that we believe reflect a respectable performance in the face of this challenging global recession. We have done this by focusing relentlessly on our customers’ needs, stepping up service in our markets and carefully managing our spending.
	Revenues for the quarter fell 15.9% to $278.5 million and this reflects reduced fuel surcharges and a 9.8% decline in overall volume. Horizon’s estimated market shares held steady or improved slightly across our tradelanes. We achieved a revenue increase of 2.5% per container unit net of fuel, adjusted EBITDA of $28.5 million and adjusted earnings of $0.13 per share.
	Free cash flow also outperformed our own expectations despite the decline in adjusted EBITDA from a year ago. And we ended the quarter with

adequate liquidity.

In short, we managed our business well in what we would call a deep, ongoing recession that continues to impact most of our customers. While across all tradelanes, quarterly volumes were shy of our own expectations. I think it is instructive to view our volume performance in the context of the broader transportation industry. We have all heard of over 20% volume shortfalls in some of the major international ocean shipping tradelanes, a 23% decrease in overall US freight from a year ago and a 12% tonnage fall off in the US trucking industry.

So our Jones Act volumes decline of less than 10% are significant, but more manageable than other sectors. We believe our relative performance shows not only the ongoing resilience of our business model, but also our Company’s ability to become more productive in these challenging times.

Once again, it is worthwhile to review what we think are the key attributes that differentiate Horizon Lines in this environment. First, we serve primarily as a US domestic ocean carrier, managing and delivering cargo that is vital to the basic needs of businesses and people in our unique tradelanes.

We have strong roots and we are deeply invested in these markets, which we have been serving, in some cases, for more than 50 years. Understandably, we enjoy long-term relationships with our customers and we operate with a solid capital structure that enables us to withstand prolonged periods of economic uncertainty.

Supporting this, we have the infrastructure and assets in place that give us tremendous operating leverage. In other words, we will be able to capitalize on renewed growth opportunities when economic expansion resumes and without having to make additional major investments.

Those of you who have been following the Company for the last few years will understand this is exactly what you saw during the first seven years of this decade, adding throughput to an already efficient delivery structure.

Looking at our young logistics business, we continue to grow organically piece by piece in a very challenging economic environment during the quarter. Understandably, in some areas of our broad logistics offerings, progress has been slow. Part of this is because we have, for the time being at least, suspended our earlier acquisition strategy. But again, I am confident that we are putting the building blocks in place that will lead to accelerated growth in our logistics business as economic conditions improve.

	As we have previously disclosed, during the second quarter, we also concluded an agreement to settle class-action antitrust litigation in Puerto Rico and at the same time, we executed an amended credit agreement with our lenders. We view the antitrust settlement as a good-faith effort to address and resolve the issues that have been raised in the Puerto Rico class-action litigation.
	Also, as we previously stated, we intend to vigorously defend ourselves against several purported class-action lawsuits in the other tradelanes that have been filed against Horizon Lines. Meanwhile, we are cooperating fully with the Department of Justice in its ongoing investigation into pricing practices of domestic ocean shipping.
	Turning to our outlook for the remainder of the year, we saw some positive signs at the end of the second quarter. Of course, business levels in our markets remain dependent on the broader economic recovery. Historically, however, you will probably recall that our shipping is generally strongest in the third quarter, extending into the first part of the fourth quarter. Our current view is that full-year adjusted EBITDA will be further below last year’s $130 million level than we may have previously expected, but continue to remain above levels that would jeopardize compliance with the financial covenants in our credit agreements. And we are projecting full-year adjusted free cash flows to be in the same general range as the $59.9 million we generated in 2008.
	Finally, we announced late yesterday that our Board of Directors approved payment of our regular $0.11 quarterly dividend, making this our 16th consecutive cash dividend payment at that level since going public in 2005. Now with that, let me turn the call over to John Keenan. John?
John Keenan	Thank you, Chuck and good morning, everyone. This morning, I will provide you with an update on our liner business, starting with Alaska on page 9. Our second-quarter volumes were below internal expectations. Economically, the state remains relatively healthy when compared to the lower 48 and oil prices have firmed somewhat in recent weeks.
	During the quarter, however, consumers appeared reluctant to spend given the overall concern about the spread of the recession. On the positive side, business conditions firmed modestly late in the quarter. The state ended its four-month hiring freeze on July 1 and the government’s budget reserve remained healthy at approximately $12 billion.
	In October, Alaska residents are also expected to receive their permanent fund dividend payout. While this year’s payment is expected to be less than half the record $3269 paid to each resident last year, it is still a

substantial amount. In addition, 33,000 Alaska residents are in the process of receiving their portions of the Exxon Valdez settlement. This is estimated to be nearly $1 billion after Exxon late last month agreed to pay nearly $500 million in interest payment in addition to the punitive damages.

Our business in Alaska remains well aligned with major big-box retailers and long-term customers. This helped offset some of the second-quarter volume softness, and we expect these partnerships to remain a positive influence in the second half as key customers continue with their expansion plans.

In addition, our seasonal southbound seafood business firmed in the late part of the second quarter. This trend has continued through July thanks in part to stronger-than-expected pollock and salmon runs and has helped drive positive growth in our reefer business.

We remain keenly focused on cost efficiencies in Alaska and similar to last year, we do not plan to add a peak season vessel this summer as we see no need for additional capacity in this environment. As for the longer term, Alaska’s prospects remain very positive. The energy rich state is supporting development of a massive natural gas pipeline that would bring in tens of thousands of jobs over an estimated 10-year construction period. While the project itself is still years off and many hurdles remain, developers are moving ahead next year to solicit firm commitments from the gas producers. This is a critical milestone known as open season.

Looking at Hawaii on page 10, the tourist mecca remains in the grip of recession. Tourism and construction dropped off sharply in the second half of last year and are showing no signs of recovery through 2009. The projected gross state product for the year has been revised downward to a deficit of 1.6% from the April forecasted deficit of 0.2%. The 2009 forecast for visitor arrivals, a key measure of tourism, has been revised downward to negative 6.8%, largely due to Asian concerns related to the H1N1 flu pandemic.

As we expected, our volumes in Hawaii are down from last year. During the quarter, we experienced a decline in the retail, auto and building materials segment, although improved volume from some of our big-box retail customers helped mitigate the overall decline. As in Alaska, we believe we are well aligned with strong growing customers.

In addition, consumable commodities such as groceries and beverages held fairly steady during the quarter and our focus on higher value cargo is also helping to soften the impact of the recession.

Our Guam market also continues to be adversely impacted by the recession-driven decline in discretionary purchases and a drop in tourism from Asia. This is being partially mitigated by ongoing military construction projects. These projects are expected to accelerate in earnest in 2011 to support the island’s projected 24% population increase by 2014. That is when the US military is scheduled to move more than 8000 marines, their dependants and support personnel to Guam from Okinawa. We plan to aggressively pursue the cargo that will be required to support this buildup.

Earlier this year, we installed three refurbished cranes in Guam to handle the anticipated volume increase as Guam remains a strategically crucial location for our military.

Turning to Puerto Rico on page 11, volumes fell in the second quarter from a year ago as the recession continues in its fourth year. GDP for the fiscal year, which ended in June, is projected to have declined 3.4% from the prior year. Some economists are projecting a more moderate decline for the fiscal year just started, but the island remains mired in recession. The Commonwealth’s unemployment rate is well into the double digits, construction spending is down 11.5% from a year ago and commercial bankruptcies have climbed 29% this year.

Our Puerto Rico volumes have declined somewhat from a year ago, but our estimated marketshare remains steady to slightly improved at approximately 34%. In addition, despite some rate pressures, our customer relationships remain strong and we are working to continually improve our cargo mix, focusing on time-sensitive perishables where we can differentiate Horizon Lines through customer service and schedule integrity.

And despite the ongoing recession, the business climate in Puerto Rico remains cautiously optimistic. The new Governor has launched an economic stimulus plan to reduce the $3.2 billion deficit and accelerate economic growth. Governor Fortuno’s swift actions, which include reducing government payrolls by 30,000 workers this year, are said to be a key reason the Commonwealth successfully refinanced $5.8 billion in bonds at lower interest rates. The transaction is helping the Puerto Rico government fund its economic stimulus plan.

Meanwhile, anticipation is growing in each of our markets over the funds expected from the federal economic stimulus program. Page 12 provides the latest estimates of these funds and their anticipated impact on each of our tradelanes. As you can see, the two-year program is expected to inject about $1 billion each into Alaska and Hawaii, creating some 23,000 jobs. Guam expects $178 million from the program and another $800 million in

military spending in 2010. In addition, the Japanese government has agreed to contribute $1 billion in 2010 to support the military relocation.

In comparison, over the two-year period, Puerto Rico alone is anticipating $5.7 billion in federal economic stimulus funds. It is expected to generate 13,000 jobs and $1.2 billion in spending before the end of this year, including $594 million in direct cash payments to workers. The federal economic stimulus program has not yet translated to volume increases for us. However, we expect to generate our fair share of volume as the program gains traction in our tradelanes.

Turning to page 13, you can see that overall container volume declined 9.8% for the quarter, which is sharper than we expected. Volume in each tradelane contracted relative to last year.

Unit revenues on page 14. During the quarter, we achieved a 2.5% increase in revenue per container to $3293, excluding fuel surcharges. In this environment, we continue to experience some rate pressures associated with declining market volumes. Our strategy remains to differentiate Horizon Lines through intense focus on customer service excellence, schedule integrity, key attributes that we believe translate to increased business from higher value cargo.

Investment performance metrics that support our emphasis on schedule integrity are on page 15. Our vessel on-time arrival in the second quarter was 94% compared with 90.3% last year. This improvement was due both to excellent maintenance on our vessels and to process improvements focused on ensuring that our ships depart on schedule. If you recall, we are very proud of this. We measure our vessels on time to the minute.

Our vessel availability was excellent at 100% during the quarter while capacity utilization was 60%, down from 67% last year, reflecting the recession-induced volume declines.

On page 16, you can see some of the process initiatives we are undertaking to reduce costs. Our fuel initiative has already conserved approximately 2000 metric tons year-to-date relative to a year ago. This equates to approximately $580,000 in savings. We are achieving this through a number of ways, including focusing on on-time departures and better voyage planning.

Lastly, we continue to position our Company for long-term efficiencies as our tradelane economies rebound and volumes improve. We have significant operating leverage in our current vessel network, for instance, enabling a 50% volume increase from current levels before requiring the addition of any vessels.

	As you can see on page 17, our focus on increased efficiencies includes both processes and assets. Over the past year, we have invested in larger, more efficient cranes, new gates in our San Juan terminal, fuel-efficient tractors on the West Coast and so on. The message here is that we have invested in the future and we are positioned to rapidly leverage those assets when our tradelane economies improve. In the meantime, we do not foresee any further major investments over the next year or so.
	Before turning the call over to Brian, I want to spend just a minute on page 18 because the awards shown here speak to the confidence that our major customers have in us. This year, we received the Platinum Carrier Award from Lowes for 100% on-time delivery. We also were named the Jones Act Carrier of the Year from Wal-Mart and we just learned that we have won the Quest for Quality award in the ocean carrier category from Logistics Management Magazine. These awards are difficult to win and Horizon Lines has won awards like these on a consistent basis over the years.
	We are very proud of the focus we place on customer service excellence, an honor that major customers and industry experts acknowledge us for successfully executing on this promise. In the long run, this focus provides lasting value to our customers, timely and consistent service to the tradelanes we serve and a solid foundation for long-term growth for our Company. With that, I will hand this over to Brian.
Brian Taylor	Thank you, John and good morning, everyone. As you can see on slide 20, we generated just over $8 million in revenue during the second quarter with $10.4 million in operating expenses resulting in a negative adjusted EBITDA contribution of $2.1 million. As we have previously discussed, logistics is still in the early stages of evolution, investing in the people and technology we need to support our organic growth strategy during these challenging economic times.
	We expect and have planned for an operating loss in 2009, but we continue to position the Company with a growing pipeline of potential business that will allow us to capitalize on these opportunities as the economy begins to rebound.
	Despite this challenging economic climate, we continue to see new accounts moving cargo in our network. As we make further progress in gauging and integrating the liner sales team and the broader logistics sales effort, we expect revenue growth to accelerate bringing us closer to breakeven status.
	Turning to slide 21, one of our primary strategic objectives for 2009 is to

grow and diversify our account base and we are aggressively pursuing this initiative. We have seen a pronounced shift within the expedited segment towards lower cost transportation alternatives and as such, we are sharpening our focus on two key market verticals that continue to show longer-term promise.

Specifically, we are aligning some of our sales and operating resources around alternative energy companies and the healthcare segment, both of which may have upside potential based on the current administration’s focus.

Our pipeline of business leads is strong and we continue to see success, particularly in our drayage, freight brokerage and international ocean segments. As an example, in the second quarter, we secured new big-box retail business from two customers that will utilize our West Coast drayage service. Income from this business will begin in the current quarter resulting in new revenue for logistics and because of the existing relationship these customers have with the liner operation, we also anticipate reduced empty mileage cost for Horizon Lines.

The freight brokerage business is one of our two key growth areas for logistics contributing solid revenue expansion year-to-date. Compared to quarter one, we more than doubled the number of shipments handled through our brokerage unit this quarter and we also achieved a 21% increase in our cross-border truck shipments processed through our Laredo facility.

Within our brokerage, the second quarter also marked the launch of our new LTL transportation management system, which automates the LTL booking process and leverages route optimization technology. In just eight weeks, our shipment count has increased fivefold and we expect solid growth to continue throughout the balance of 2009.

The other area delivering solid growth during this past quarter is our international NVOCC operation. Despite the ongoing volatility in the international freight markets, we have seen continued growth in the volume of leads, quotes and shipments.

With a solid foothold in place in Asia, we are now selectively expanding to serve export business opportunities to Europe based on requests from our existing customers. Our European agency network is now in place and will contribute to our growth in the second half of this year. Moving forward, you can expect to see us focus our resources and a lot of our energy on the development of our freight brokerage and NVOCC lines of business.

	Finally, our West Coast warehouse operation delivered new crossdock and transload business in the second quarter. We recently began two new programs for existing customers and we also finalized a new warehouse venture in our LA facility that positions us to handle new distribution programs for several other retailers. These initiatives will add new revenue to the warehouse in the months ahead and create drayage opportunities for our trucking operation.
	Looking out further into 2009 and even into 2010, we see continued expansion in our operations related to Mexico. Volatile energy prices and in some cases, global instability have many companies seeking manufacturing operations that are closer to their North American markets. Our cross-border infrastructure in Laredo and our experience handling in-country trucking in Mexico strongly position Horizon to serve companies with Mexican manufacturing operations.
	Like many other businesses, we expect the ongoing economic challenges to moderate our volume growth and profitability for the near term. However, we believe the successful execution of our strategy will solidly position Horizon Logistics for accelerated growth once the economy begins to recover. Now let me turn the call back over to Mike for the financial review.
Mike Avara	Brian, thank you and good morning, everyone. I’m pleased to report that we delivered good financial results in the second quarter despite a still very difficult economic environment. We accomplished this by doing three things. First, we focused on high-value cargo that helped us achieve improved rates in the face of reduced volumes, which obviously is no easy accomplishment. Second, we maintained or increased our marketshare in all three tradelanes and third, we continued to aggressively manage costs. As a result, we were able to deliver adjusted EBITDA of $28.5 million. We maintained adequate liquidity and we remain in compliance with our two financial covenants.
	So when other transportation modes are still experiencing volume declines around 20% and significant rate declines, our second-quarter performance stacks up pretty well in comparison with volumes down 9.8% and rates net of fuel up 2.5%.
	Starting on page 23, I want to first discuss certain items that impacted our second-quarter results. We are excluding these items as we typically do from our adjusted results to give you an apples-to-apples comparison with 2008.
	The first item was the $20 million charge related to the settlement of our class-action litigation in Puerto Rico. Now this settlement is being paid

out in three installments, most likely by the end of the year and in fact, we made the first $5 million payment on July 15.

Second, legal expenses and related antitrust matters totaled $4.1 million as we incurred expenses around the settlement of our Puerto Rico case. Additional vessel impairment and restructuring charges totaled $0.8 million. We also recorded a $10.5 million tax valuation allowance associated with our net operating loss carryforwards. The accounting rules generally require a valuation allowance be recorded on NOLs if cumulative pretax GAAP losses are projected over a three-year period. We will incur a cumulative pretax GAAP loss for the period 2007 through 2009 due to a number of charges including those from our refinancing that took place back in 2007. However, it is important to note that, first, this book tax adjustment has no cash impact. It does not impact our ability to utilize NOLs to offset taxable income in future years and our NOLs do not begin to expire until 2019 for state purposes and 2024 for federal purposes. Turning to page 24, second-quarter operating revenue fell $52.5 million, or 15.9% from the second quarter of 2008. Page 25 shows the major factors that drove the change in revenue. The largest component of the $52.5 million decline was reduced fuel surcharges, which fell nearly $28 million due to lower fuel prices. However, our fuel cost recovery for the quarter continued to be about 90% as it typically is.

The volume decline of nearly 10% caused revenue to fall by about $28 million, which was due largely to the continuing now multiyear recession in Puerto Rico, the ongoing decline in Hawaii Guam and a delayed recession-related slowdown in Alaska. These declines were partially offset by continued rate and mix improvement totaling $9.2 million, again as rates net of fuel improved 2.5% despite some rate pressures.

Turning to page 26, adjusted operating income fell 31.2% to $13.7 million for the second quarter versus $19.9 million a year earlier. Now this decline of $6.2 million was due to a number of factors, the volume decline — the margin impact for that volume decline was $15.6 million negative, and lower non-transportation revenue, the associated margin impact of which was approximately $1.8 million. However, these negative factors were partially offset by the rate net of fuel improvement, which added $4.3 million to operating income, a reduction in our fuel recovery shortfall due to better management of our fuel surcharge program added nearly $3 million and fuel consumption savings also, of course, helped there. And our nonunion workforce reduction savings that we completed in January added $2.8 million to operating income.

Adjusted EBITDA reflected on page 27 again totaled $28.5 million for the second quarter, a decline of $7.3 million from last year. And really the same factors that I discussed for operating income also impacted adjusted

EBITDA.

Now turning to page 28, our second-quarter adjusted net income totaled $4.1 million versus $8.5 million in 2008. We were able to reduce our interest expense $1.1 million from a year ago. We are carefully managing our debt levels and opportunistically capturing lower interest rates on the short end of the yield curve. But this was overshadowed by the $6.2 million decline in adjusted operating income that I just discussed.

Adjusted diluted EPS on page 29 totaled $0.13 for the second quarter compared to $0.28 in 2008. The decrease of $0.15 was due to the reduction in net income of $7.3 million on a nearly identical share base at the end of each period.

Page 30 provides a segment breakdown of our 2009 second-quarter results, reflecting, as you see here, liner adjusted EBITDA of $30.6 million and logistics adjusted EBITDA of a negative $2.1 million and of course, intercompany transactions have been eliminated from these results.

Cash flow is presented on page 31 and this really remains a very positive story. Adjusted free cash flow was negative $0.7 million June year-to-date. This compares to free cash flow of $9.5 million a year ago, but I should point out that the $10.2 million year decline in adjusted free cash flow really compares very favorably to a corresponding $15.4 million decline in adjusted EBITDA. So in other words, we were able to offset $5.2 million of the EBITDA shortfall in other means. This is due primarily to a continued very strong focus on working capital.

You will see here working capital was $6.4 million better than a year ago and this working capital gain was mainly driven by an improvement in accounts receivable. So despite the difficult economy, our cash collections remain very strong and we have seen no deterioration in our accounts receivable aging. We also continue to focus on cash collections and really broader working capital management in areas outside of accounts receivable and accounts payable and have captured about $1 million of savings thus far on that initiative and hope to get another $1 million or so from the working capital initiative in the second half of the year.

Page 32 provides the major terms of our credit agreement amendment. I won’t read those to you, but I do want to point out the major takeaways. First, we did secure favorable terms given the difficult environment for refinancing debt. We maintain adequate liquidity to withstand a prolonged recession. Our combined interest rate still remains at a low 4.48% and we expect to remain in compliance with our financial covenants.

	Turning to page 33, you can see that we continue to operate with adequate liquidity, are in compliance with our credit facility financial covenants, have a very low weighted average interest rate on our debt and no recapitalization needs anticipated until 2012.
	In addition, I would note that we paid down $5 million on our revolver during the quarter. So pretty good performance despite EBITDA declines and we ended the quarter with $31.5 million less funded debt than we had just a year ago.
	So to wrap up, our second-quarter financial results were solid despite volume shortfalls associated with the ongoing global recession. We managed our business well considering these challenges. We controlled what we could. As we indicated in both January and April, we expected that our first-half 2009 results would be down versus the first half of 2008 due to a relatively better economic environment in the first six months of last year. And we believe our second-half 2009 results will begin to improve versus 2008 as economic conditions stabilize and begin to improve slightly.
	Although we do not know when this historic recession will come to an end, we are at least seeing some hopeful signs that it may be approaching a bottom. We believe we remain soundly positioned in the current environment and are ready to capitalize on growth opportunities when the economy improves. Michael, we are now ready to open the call up for questions.
George Pickral	Hey, guys. Thanks for taking my call. John, I think the first question might be for you in the liner business. The volumes were down 10% in the quarter. Can you tell me what those trends were month by month throughout the quarter and then can you break it down by tradelane as well?
John Keenan	Yes, George, welcome to the call. Let me take you through month by month. Each of the tradelanes were a little bit different starting with Alaska. If you recall the first quarter in Alaska, the first several periods were very strong so we started to see a consistent drop-off starting in the third and the fourth and fifth periods. And as I mentioned, we are starting to see, some improvement in Alaska, especially with the fifth period.
	Hawaii and Guam was fairly consistent. The volumes were what we anticipated and in Puerto Rico, going back to the first quarter, the first two periods were strong and the volume drop-off has been really not as significant as what we have seen in Hawaii or Alaska.
George Pickral	Okay. So Puerto Rico, I guess relatively speaking, could be getting a little

	worse, but Hawaii and Alaska aren’t? Is that a fair assessment?
John Keenan	No, I don’t see it that way, George. I think that what we have seen in Puerto Rico, as I mentioned, in the first quarter was what we anticipated, basically on our plan and we saw some slight decrease and then we have seen Puerto Rico come back up. So we don’t see Puerto Rico really getting worse. We tend to feel that Puerto Rico has hit its bottom.
George Pickral	Okay, okay, good. Just want to make sure on that. I guess staying on the liner side here, you said the seasonal uptick is normal from Q2 to Q3. What sort of uptick are you expecting this year or is it going to kind of stay flat, if that makes any sense?
John Keenan	Yes, I said typically our third quarter is our strongest quarter, due to seasonality. That is really the way our business has been trending over the years and we expect that to be fairly consistent year-over-year.
George Pickral	Okay. So even though volumes are still going to be down year-over-year sequentially, you should see the normal seasonal uptick.
John Keenan	That’s correct.
Mike Avara	George, it’s Mike. I would just add that in the third quarter we typically see about 35% of our EBITDA. As I mentioned in my comments, we expected from the very beginning the first half of this year to be difficult because the first half of last year was actually pretty good in comparison. We expect to do better in relative terms in the second half of the year than we did in the first half of 2009.
George Pickral	Okay, thank you. And Brian, switching over to the logistics division, that new drayage business you mentioned, are there going to be any startup costs that impact the profitability in Q3 that we need to pay attention to or is this something that can be profitable or a bottom-line contributor from the start?
Brian Taylor	George, we do not anticipate any incremental costs or investment in assets in order to serve the business. As you may recall, we’ve just invested in a fleet of new green tractors out on the West Coast earlier this year. That is actually part of the reason that we have been successful in securing this business. So at this point, we’d look at this new business being incremental revenue and growth going forward with no additional investment or cost.
George Pickral	Great. And last question before I turn it over. Earlier this month, there was a hearing in the Senate on the Maritime Administration Authorization Act. I guess along the lines of the Marine Highway. Chuck, I know you

	have all been talking about that for the past few years. Is this something that was kind of a major step going forward that could allow this Marine Highway to happen sooner rather than later? Or is this something that may not happen until fuel gets back up to $4 or $5 a gallon and people start to realize it is significantly cheaper to move it via water then on a road or rail?
Chuck Raymond	Yes, George, I think both the administration and the Congress ultimately respond to what is hurting the most. And right now, of course, they are focused on healthcare and some other things. I would say that you are probably right that, until fuel starts to really hurt people again, that the public support for any major investment on the Marine Highway is going to be low.
	That being said, if unemployment continues to ratchet up towards 10% in the nation, I think we are going to see more focus on stimulus and on stimulus spending that would generate immediate jobs and that might then go to better port structures, perhaps better intermodal interchanges and things of that nature that would support us in that business going forward.
George Pickral	Great. Thanks for the time, everybody.
Chaz Jones	Hey, guys. Nice quarter. Normally, you guys give your assumptions for volume rate and fuel and obviously, I understand that visibility is still very challenging here. I guess, one, have those assumptions changed materially and two, are you not going to provide those moving forward?
Chuck Raymond	We have provided those in the past, Chaz. As we look out for the rest of the year, the volume assumptions have been tempered a little bit as we mentioned. Fortunately, we have been able to do it on the other lever. Rate net of fuel was up, I think, 3.3% in the first quarter, 2.5% in the second quarter. So I think you’re going to see us come at it a little bit differently with more help from rate than volume.
Chaz Jones	Okay. And then any sense for timing as far as the court approval on the settlement, when you might have some resolution, whether that is going to get approved or not? In the Puerto Rico settlement, I’m sorry.
Chuck Raymond	This is Chuck. You know that we went ahead and filed our settlement proposal as did the litigants that we entered into the agreement with. That has to be reviewed by the court. We anticipate that the court will approve that after they have done their review, maybe a month more. Then they have to go through the process of mailing out the settlement details to the class. And they will have to get the responses back. So that will be maybe another six to eight weeks, couple months maybe. I would say probably sometime maybe early in the fourth quarter.

Chaz Jones	Okay. And then do you have a sense yet for what percentage of the customer base and Puerto Rico has opted to take the rate freeze versus participating in the settlement payment?
Chuck Raymond	They will indicate that when they mail their responses back into the judge, then we will have kind of a reading on that. At this point, we don’t.
Chaz Jones	Okay. But maybe by the end of the year, you will have a better sense of that?
Chuck Raymond	Yes, I am sure by the end of the year, we should have it.
Chaz Jones	Okay, great. And then assuming that we are at a bottom here, not that there is a V-shaped recovery in the economy, but assuming we are at the bottom, just trying to get a sense for — assuming the volumes start to improve at some point out in the next couple quarters, what typically is the incremental contribution margin you get to the bottom line from volume improvement?
Chuck Raymond	At a high level, based upon our cost structure, 50% fixed 50% variable, we get about 45%, 50%. Obviously, there are some steep variable costs with ships and equipment. So on average I would say about a 45% contribution margin.
Chaz Jones	Okay. No, that is helpful. I think, obviously, everybody knows there is tremendous earnings leverage in the model. And then I guess another just kind of housecleaning question, the $900,000 impairment and restructuring charge that you took in the quarter, what exactly was that for?
Mike Avara	It was a true-up of some of our vessel impairment charges that we made in the fourth quarter of 2008 and an additional restructuring charge relating to our logistics business.
Chaz Jones	Okay. And then just on that TP1 service, I know that’s somewhat of a unique contract, but — and I don’t know if you can disclose this. If you can’t, I understand. But can you talk about maybe the utilization on those vessels currently in this environment?
John Keenan	This is John Keenan. As you know, we have an international partner on that service where we have a take-or-pay from Asia back to the US West Coast. We’ve modified that service. The inbound call is into LA. It used to be in Tacoma. So on that leg, which is important, that is where we provide space to Maersk as the international carrier.
	Outbound, obviously, the utilization is lower from a loaded container

	perspective because that is how we service Guam. We service our Guam cargo with loaded containers. We also use that to reposition empties for our international partner back out to Asia.
Chaz Jones	Right. And I am just trying to get a sense — I mean obviously vessel utilization is down in the Jones Act trade. I guess what I am getting at is — I know that contract comes up for renewal at some point and obviously, there is a significant amount of excess capacity in the international shipping market. And just kind of curious where that contract stands in terms of if there is a lot of spare capacity on that contract, is there foreseeable risk as it comes up for renewal?
John Keenan	Well, Chaz, again, as you know, we have had that arrangement with Maersk for about nine and half years, since ‘99. Where it is today, it is a lot more than just the capacity on the ship. Remember we have the equipment interchange agreement where we utilize Maersk boxes. There are about 14 agreements co-mingled with that one TP1 agreement. And the net slot cost to the international carrier is very, very good because of the fact that we handle the empty back out for them. We use that empty for a load into Hawaii and we also, at the same time, reposition that box out for the international carrier to become a head haul load for them. We are evaluating our replacement strategy and if we should choose to change the existing agreement. As you know, that agreement expires in December 2010. I think that is the date you are looking for. And we are in the process of doing some evaluation in each and every one of those agreements.
Chaz Jones	But to your point, it is a little bit more customized. There is probably some high changeover costs associated with it. It is not just kind of a wholesale, move-the-box service.
John Keenan	That’s a good way to look at it, but you are right. As I’ve said earlier, it is a relationship we have enjoyed for nine and half years and there is a lot of value transferred between both companies, which goes well beyond the TP1.
Mike Avara	Chaz, just building on John’s comment, that is one of 14 agreements. Although it is sort of a tough time maybe to have a space charter agreement renewal coming up; it is a very good time to have a terminal renewal agreement coming up and we basically pay twice as much on terminal services with APM terminal, sister company Maersk line, as we do Maersk line. So it is a pretty balanced relationship even with some of the Trans-Pacific issues.
Chaz Jones	Okay. And then maybe one last question here. I know pricing has stayed positive. Certainly hopefully volumes are stabilizing here. But I guess,

	how much do volumes have to go up for pricing to, I guess, reaccelerate would be the first question? If volumes continue to maybe just stabilize here, is there potential for further kind of incremental pricing deterioration?
John Keenan	Chaz, let me start with that and then I know Chuck has a comment. I think that, in a difficult economic environment that we are in, we expect rate pressures to continue. But that being said, we have proven quarter-over-quarter that our ability to get higher margin cargo, higher mix cargo, different commodities, even when you have softness in our markets, we are able to get some rate increases. And we don’t have a real good way to correlate — if your volume goes up, your rate goes up X. As you know, there are some competitive pressures there, but I think that historically we have been able to improve our reefer business, which we have focused on. And at one point it was 21% of our cargo mix, which is now almost 25% of our cargo mix and aligning with the customers that do value our high level of service.
Chaz Jones	Okay, great. Well, guys, I appreciate all the commentary. It is always helpful.
Sherwin Prior	Good afternoon, gentlemen. Great quarter. I have got a couple questions here. First, in the past, you have discussed potentially selling some vessels. Can you kind of comment on where you stand on that? That would be the first question.
John Keenan	Okay, yes, this is John Keenan. We have one vessel, which is in the process of being sold, which is the Horizon Crusader. It is one of our C7 class vessels and we intend to scrap that vessel by year-end.
Sherwin Prior	Okay. On the second question here, related to the bunker fuel prices, what are you seeing there and how are you expecting to manage those costs for the back half of the year?
John Keenan	Okay. Again, I will take that. This is John. If you go back in history and look at the first quarter of ‘08 versus ‘09, our fuel prices in the first quarter in ‘08 were about $475 per ton. That is an average number. As you know, we bunker our ships East Coast and West Coast. So we have seen a nice improvement ‘08 versus ‘09 from that $475 down to $252. But there are a couple of components to it. We are also focusing on our consumption. And I mentioned earlier about our on-time arrivals.
	When we have a good departure, our ability to conserve fuel and do better voyage planning allows us to see a reduction in the consumption on board the vessel. It has been a key area of focus for us. And what we are trying to do is, in certain port locations whether it is Tacoma, Oakland or LA, try

	to bundle our purchases on a monthly basis and maybe buy a month forward, which gives us a favorable treatment at that time because, as you know, we do not hedge our fuel. We buy our fuel based on the spot market.
Sherwin Prior	All right. Okay. The last question really — discuss a little bit more color on the second-half free cash flow outlook and what should we expect for any incremental debt paydown?
Mike Avara	Sherwin, hi, it’s Mike. As Chuck mentioned in his opening comments, we expect to be around the $60 million of adjusted free cash flow that we did last year. As you might recall, really our free cash flow generation and our debt repayment as a result is really a third and fourth-quarter phenomena. As we grow receivables through the first half of the year, the higher cash collections really show themselves in the third and fourth quarter. So we expect, even with the decline, a little bit in the EBITDA projections we had maybe in the first quarter, to still be right at free cash flow levels near last year.
	In terms of debt repayment, I suspect we will probably be able to pay down about $20 million of debt or so during the course of the year. We did pay down $5 million, as I mentioned, right before the end of the second quarter. And I think we have another $15 million or so maybe $20 million that we might be able to pay down during the rest of the year.
Sherwin Prior	Okay. Well, just last comment. You guys have done a really phenomenal job managing through the tough environment. We appreciate that. Have a good one.
Chuck Raymond	Thank you, Sherwin.
Operator	We have no further questions in queue.
Chuck Raymond	Okay, well, Michael, thank you very much again as moderator and thank you everyone for joining us today. Before we close the call up, let me just try to summarize a couple of things that we talked about. First, the economic downturn has created the most difficult business environment since the Great Depression. We all know that. Yet, here at Horizon, we have continued to, I think, demonstrate the resilience that we’ve talked about many times. We are well-positioned to ride this out. Our customer relationships are strong. Our dedication to the well-being of our tradelanes and the customers in those trade lines is constant.
	And as Mike just pointed out, financially, we have got the right liquidity, we’ve continued to generate cash, remain in compliance with our debt covenants and really don’t have any recapitalization needs or frankly

	major capital expenditure needs at least until 2012 as we look at the business today.
	The second point is one on operating leverage. We can accelerate cash flows as business improves. We have the ability to handle a significant increase in volume without the step-up costs that others might be exposed to as the economy comes back. We do have the existing infrastructure, which we put up very nicely for the last couple of years through selective investments in all of our tradelanes and have the vessel capacity to accomplish that.
	And then finally, just one last thought on logistics. It is tough times. Logistics companies are suffering right now, but I believe that Brian and the rest of the Company are doing the right thing to position us for future growth in that sector.
	So with that, thank you and we look forward to talking to you again on our third-quarter conference call scheduled for the 23rd of October.
Operator	Thank you, ladies and gentlemen. This does conclude your conference call for today. We ask that you please disconnect your lines.

EX-99.3

July 24, 2009 Horizon Lines, Inc. Second Quarter 2009 Earnings Release

Agenda Introduction Jim Storey Director, Investor Relations & Corporate Communications, Horizon Lines, Inc. Overview Chuck Raymond Chairman, President & Chief Executive Officer, Horizon Lines, Inc. Shipping Review John Keenan President & Chief Operating Officer, Horizon Lines, LLC Logistics Review Brian Taylor President & Chief Operating Officer, Horizon Logistics, LLC Financial Review Mike Avara Senior Vice President & Chief Financial Officer, Horizon Lines, Inc. Questions and Answers - -2-

Forward-Looking Statements Risks, Uncertainties, Other Factors with Respect to "Forward- Looking Statements": Certain statements contained in this presentation constitute "forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements that are not of historical fact constitute "forward-looking statements" and, accordingly, involve estimates, assumptions, judgments and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those addressed in the "forward-looking statements". Such factors are detailed in the Horizon Lines, Inc.'s Form 10-K filed with the Securities and Exchange Commission on February 5, 2009, and updated as necessary in subsequent Form 10-Qs. - -3-

Second Quarter 2009 Earnings Release Chuck Raymond Chairman, President & Chief Executive Officer Horizon Lines, Inc. Overview - -4-

Second Quarter Highlights In the face of a very difficult environment, we managed our business well Estimated market share held steady or improved Rate per container, net of fuel, increased 2.5% Customer alignment remained strong Cost containment efforts continue to yield benefits Free cash flow outperformed, relative to EBITDA decline Adequate liquidity maintained However, challenges continued unabated Global recession drags on Volumes were below our expectations across all tradelanes Some rate pressures emerged And as a result, financial performance was below 2008 results and internal expectations Revenue at $278.5 million Volume down 9.8% from year ago Adjusted EBITDA of $28.5 million - -5-

Antitrust Litigation Update Reached settlement agreement on June 11th in Puerto Rico class action antitrust litigation Agreed to pay $20 million for distribution to all eligible class members Agreed to two-year, base-rate freeze option for Horizon Lines customers who are under contract at the time agreement becomes effective, and who do not choose the cash alternative Agreement is subject to court approval Department of Justice investigation is ongoing and Horizon Lines is cooperating fully Horizon Lines intends to vigorously defend purported class action lawsuits in Hawaii/Guam and Alaska tradelanes, as well as the shareholder class action lawsuit - -6-

2009 Outlook Recession is expected to continue throughout 2009 Overall GDP contraction seen moderating slightly in second half Economic recovery likely to be gradual, muted and disparate However, HRZ is well positioned in this environment Domestic trade remains much more stable than international trade Recession resistant - Serve the basic needs of our tradelanes Aligned with the right customers and intensely focused on service excellence Cost controls working well Operating from a stable financial platform In compliance with financial covenants No recapitalization needs anticipated until 2012 - -7-

Second Quarter 2009 Earnings Release John Keenan President and Chief Operating Officer Horizon Lines, LLC Liner Review - -8-

2009 Forecast* July April January Average Oil Price $60/bbl $53/bbl $51/bbl Employment (0.6)% (0.6)% (0.6)% Economy slowed in Q2, but impact less severe than in lower 48 Oil prices down sharply from year ago, but had rebounded until decline in recent weeks 2009 Anchorage port volumes expected to decline 5% from year ago Tourism has dropped 15%-30% from 2008 levels, and consumer spending slowdown has curtailed air-cargo shipments, which are down 39% YTD Unemployment rose to 8.4% in May, but Alaska's 4-month hiring freeze ended July 1st State continues to have strong budget reserves and its Permanent Fund remains healthy - - rose above $30 billion in May after hitting low of $26 billion early in the year Horizon Lines remains well aligned with appropriate customers Improved reefer, big-box retail and seafood business, partially offsetting slowdown in vehicles, construction materials, and consolidators business Keen focus on expense control initiatives Alaska Economic Update * Government, industry projections - -9-

Hawaii/Guam Economic Update HAWAII 2009 Forecast* July April January GSP (1.6)% (0.2)% (0.0)% Visitor Arrivals (6.8)% (5.2)% (5.7)% Employment (2.9)% (2.4)% (1.4)% Real Personal Income (2.7)% (2.5)% (0.7)% Economy feeling the impact of tourism slowdown and construction decline Tourism rebound seen delayed in part due to Asia's reaction to H1N1 influenza concerns Commercial, resort and residential construction remain down sharply Horizon Lines remains partnered with strong customers, despite slowdown in new store openings and renovations Steady growth in higher-value cargo continues despite economic slowdown Consumable commodities volumes holding steady Aggressive focus on cost controls GUAM Market hurt by recession-driven decline in discretionary purchases and drop in tourism from Asia 2011 seen as launch of massive infrastructure construction projects as island prepares for military relocation from Okinawa *University of Hawaii Economic Research Organization, Hawaii Department of Business, Economic Development & Tourism, Guam Visitors Bureau - -10-

Puerto Rico Economic Update FY 2009 Forecast* July April January GDP (3.4)% (3.4)% (2.9)% Unemployment Rate 13.0 % 12.7 % 11.9 % Inflation 7.5 % 7.5 % 7.5 % Continues in fourth year of economic decline - Commercial bankruptcies up 29% and construction spending down 11.5% from year ago Limited disposable income adversely impacted by fuel price increases New government acting swiftly to reduce $3.2 billion budget deficit and stimulate economy Plans to cut annual spending by $2 billion, reduce government payrolls by 30,000 this year Refinanced $5.8 billion of bonds at lower interest rates; will help fund economic stimulus Federal stimulus money flowing into economy expected to increase by September, creating an estimated 13,000 private-sector jobs by year end Horizon Lines experiencing rate pressure in reduced-volume market Estimated overall market share remains stable to slightly improved at approximately 34% Focusing on improved cargo mix - time-sensitive perishable segments Customer relationships, service excellence, and cost containment remain key priorities *Puerto Rico Planning Board, Department of Labor and Human Resources, Government Development Bank; Unemployment rate represents average rate through May for fiscal year beginning in July '08. - -11-

American Recovery and Reinvestment Act expected to provide relief Tax benefits and credits Projects in infrastructure, transportation, education, healthcare, law enforcement, energy and agriculture Flow of funds expected to accelerate later this year and into 2010 Estimated Funding Alaska - $1.0 billion Hawaii - $936 million Guam - $178 million Puerto Rico - $ 5.7 billion Economic Stimulus - -12-

Volume Update - Second Quarter - -13- 9.8% Second quarter 9.8% volume decline was somewhat larger than expected... Alaska Impacted by economic slowdown Hawaii/Guam Tourism, construction decline continued Puerto Rico Ongoing recession Estimated market share remained stable or slightly higher in each tradelane

Unit Revenue Update - Second Quarter Unit revenue declined across all tradelanes, due to lower fuel surcharges However, revenue per container, net of fuel, rose 2.5% Experienced rate pressure as industry volumes weakened Largely offset rate pressures by continued focus on higher-value cargo, including reefer and foodstuffs 2008 2009 East 3959 3686 6.9% Net of Fuel 2.5% Total - -14-

Vessel Performance - Second Quarter 3.7% 7.0% 0.1% Vessel availability and on-time arrivals very strong Vessel utilization decline due to softening market volumes - -15-

Cost Containment Initiatives - -16- Achieving additional fuel efficiencies 1,956 metric tons saved YTD Equals $577,000 of cost savings at YTD average of $295/ton Reducing vessel crew overtime Lowering costs of "virtual" containers Number of "rented" containers down by 86% YTD Positioning company for long-term efficiencies as volumes improve Vessel network leverage Terminal infrastructure improvements

Major Infrastructure Investments Largely Completed Well positioned for economic rebound $40 million in 2008 investments Anchorage cranes under construction Hawaii port improvements completed and rubber tire gantry cranes installed Guam cranes installed and operating New terminal and gates in San Juan open and in operation Horizon "Green" tractors in place on West Coast New warehouse facility in Los Angeles Specialty equipment and reefers in place No further major infrastructure investments currently anticipated Ship-replacement program not envisioned until mid-next decade - -17-

18 2009 awards in recognition of customer service excellence Walmart Jones Act Carrier of the Year for 2008 - 7th consecutive year Lowes Platinum Carrier of the Year for 2008 - 8th consecutive year of gold or platinum Logistics Management Quest for Quality 2009 Award in Ocean Carriers category Continued Focus on Service Excellence

Second Quarter 2009 Earnings Release Brian Taylor President and Chief Operating Officer Horizon Logistics, LLC Logistics Review - -19-

Logistics Results & Strategy ($ in Millions) Revenue $ 8.3 Operating Expense 10.4 Adjusted EBITDA $ (2.1) 2ND QUARTER RESULTS Second-quarter performance adversely impacted by economic recession Positioning the business through organic growth, with focus on ability to capitalize on targeted opportunities when economy rebounds Near-term focus on accelerating revenue growth, reaching break-even status, and more fully integrating the Liner sales force - -20-

Logistics Lines of Business - Action Steps Expedited Service Revenue adversely impacted as customers continue to trade down the service spectrum Sharpening focus on key market verticals Re-aligning sales resources Drayage Lower import volumes negatively affecting volume and revenue New retail start-up programs expected to benefit second half volume Warehouse New LA warehouse venture completed and operational Transload and consolidation programs beginning to build Freight Brokerage Mexico corridor continues to show excellent results, growing 21% during quarter LTL platform launched and gaining traction - shipment count up fivefold Non-Vessel Operating Common Carrier (NVOCC) International volumes increased by over 50% versus first quarter Rate compression having a big impact on total revenue and margin European agency network now in place and expected to help growth in second half - -21-

Second Quarter 2009 Earnings Release Mike Avara Senior Vice President & Chief Financial Officer Horizon Lines, Inc. Financial Review - -22-

Second Quarter Items - -23- ($ in Millions) Item Impact Impact Impact Operating Income Income Tax Puerto Rico Class-Action Legal Settlement $ 20.0 $ (0.3) Anti-Trust Related Legal Expense 4.1 -- Impairment & Restructuring Charges 0.8 -- Tax Valuation Allowance -- 10.5 Total $ 24.9 $ 10.2

Operating Revenue - -24- ($ in Millions) 15.9% 13.5%

Operating Revenue Change Second Quarter 2009 Six Months 2009 Fuel Surcharges $ (27.8) $ (48.0) Volume Variance (27.7) (46.2) Other / Non-Transportation Revenue (6.4) (15.0) Rate / Mix Improvement 9.2 22.3 Other Horizon Logistics 0.2 0.8 Total Revenue Decrease $ (52.5) $ (86.1) - -25- ($ in Millions)

Adjusted Operating Income (1) - -26- ($ in Millions) 31.2% 42.5% (1) See reconciliation of Operating (Loss) Income to Adjusted Operating Income on page 38.

Adjusted EBITDA (1) - -27- (1)See reconciliation of Net (Loss) Income to Adjusted EBITDA on page 41. ($ in Millions) 20.4% 24.4%

Adjusted Net Income (1,2) - -28- ($ in Millions) 51.8% 106.5% (1) See reconciliation of Net (Loss) Income to Adjusted Net Income (Loss) on page 39. (2) 2008 results are adjusted for retrospective application of changes in accounting. See impact of change in accounting for convertible notes and change in accounting for restricted stock share-based payment awards on page 44. $(0.6) 2008 2009

Adjusted Diluted EPS (1,2) - -29- ($) 106.7% 53.6% (1) See reconciliation of Net (Loss) Income Per Diluted Share to Adjusted Net Income (Loss) Per Diluted Share on page 40. (2) 2008 results are adjusted for retrospective application of changes in accounting. See impact of change in accounting for convertible notes and change in accounting for restricted stock share-based payment awards on page 44. 2008 2009

Segment Results (1) Liner Logistics Consolidated Revenue $ 270.2 $ 8.3 $ 278.5 Adjusted EBITDA $ 30.6 $ (2.1) $ 28.5 ($ in Millions) Second Quarter Liner Logistics Consolidated Revenue $ 534.5 $ 16.3 $ 550.8 Adjusted EBITDA $ 52.1 $ (4.4) $ 47.7 Six Months - -30- (1) Intercompany transactions have been eliminated

Free Cash Flow - June YTD - -31- ($ in Millions)

Credit Agreement Amendment - -32- Amended credit agreement allows Horizon Lines to: Add back to EBITDA up to $25 million in settlement payments Add back to EBITDA antitrust legal and other professional expenses not to exceed $25 million in the aggregate and $15 million over a 12-month period For this consideration, Horizon Lines agreed to: An increase of 150bps on its revolving loan facility and term loan A $25 million reduction in the size of the revolving facility - to $225 million Other structural enhancements, including a step-down in the secured leverage ratio and further limitation on the ability to make certain restricted payments

Liquidity, Credit Facility Compliance & Debt Structure ($ in Millions) Corporate Liquidity Cash Balance $ 3.7 Revolver Availability 71.9 Total Liquidity $ 75.6 Credit Facility Compliance Q2 LTM 2009 Covenant Interest Coverage Ratio 4.25 >3.50 Senior Secured Leverage Ratio 2.28 <3.00 Debt Structure GAAP Amount Funded Amount Rate Formula Interest Rate Maturity Revolver $ 145.0 $ 145.0 LIBOR+3.25% *3.56% (1) 08/08/12 Term Loan 115.6 115.6 3.02%+3.25% 6.27% (1) 08/08/12 Note Payable 1.6 1.6 5.26% 2/24/14 Total Senior Debt 262.2 262.2 Convertible Notes 297.2 330.0 4.25% 08/15/12 Total Long-Term Debt $ 559.4 $ 592.2 *4.48% *weighted average (1) Maturity will accelerate to February 15, 2012, if convertible notes are not refinanced by that date - -33-

Second Quarter 2009 Earnings Release Questions & Answers - -34-

Financial Appendix - -35-

Income Statement Summary - Second Quarter Actual Actual Actual Adjusted Adjusted Adjusted Quarter Ended June 21, 2009 Quarter Ended June 22, 2008 (1) Quarter Ended June 21, 2009 (2) Quarter Ended June 22, 2008 (1,2) Operating Revenue $ 278.5 $ 331.0 $ 278.5 $ 331.0 Operating Expense 289.7 314.3 264.8 311.1 Operating (Loss) Income (11.2) 16.7 13.7 19.9 Other Expense 9.3 10.4 9.2 10.4 Pretax (Loss) Income (20.5) 6.3 4.5 9.5 Income Tax Expense 10.6 0.5 0.4 1.0 Net (Loss) Income $ (31.1) $ 5.8 $ 4.1 $ 8.5 Earnings (Loss) Per Share - Basic $ (1.02) $ .19 $ .14 $ .28 Earnings (Loss) Per Share - Diluted $ (1.02) $ .19 $ .13 $ .28 Shares Outstanding - Basic 30,438,403 30,193,161 30,438,403 30,193,161 Shares Outstanding - Diluted 30,438,403 30,273,499 30,881,097 30,273,499 EBITDA $ 3.5 $ 32.6 $ 28.5 $ 35.8 Operating Ratio 104.0% 95.0% 95.1% 94.0% 2008 results are adjusted for retrospective application of changes in accounting. See page 44 for impact of change in accounting for convertible notes and restricted stock share-based payments awards as participating securities Adjustments exclude the impact of items as noted on pages 38, 39, and 40. ($ in Millions, Except per Share Amounts) - -36-

Income Statement Summary - Six Months Actual Actual Actual Adjusted Adjusted Adjusted Six Months Ended June 21, 2009 Six Months Ended June 22, 2008 (1) Six Months Ended June 21, 2009 (2) Six Months Ended June 22, 2008 (1,2) Operating Revenue $ 550.8 $ 636.9 $ 550.8 $ 636.9 Operating Expense 562.8 608.6 532.7 605.4 Operating (Loss) Income (12.0) 28.3 18.1 31.5 Other Expense 18.8 21.5 18.7 21.5 Pretax (Loss) Income (30.8) 6.8 (0.6) 10.0 Income Tax Expense 10.3 0.2 -- 0.8 Net (Loss) Income $ (41.0) $ 6.6 $ (0.6) $ 9.2 Earnings (Loss) Per Share - Basic $ (1.35) $ .21 $ (.02) $ .30 Earnings (Loss) Per Share - Diluted $ (1.35) $ .21 $ (.02) $ .30 Shares Outstanding - Basic 30,431,178 30,342,824 30,431,178 30,342,824 Shares Outstanding - Diluted 30,431,178 30,581,666 30,431,178 30,581,666 EBITDA $ 17.5 $ 59.9 $ 47.7 $ 63.1 Operating Ratio 102.2% 95.6% 96.7% 95.1% 2008 results are adjusted for retrospective application of changes in accounting. See page 44 for impact of change in accounting for convertible notes and restricted stock share-based payments awards as participating securities Adjustments exclude the impact of items as noted on pages 38, 39, and 40. ($ in Millions, Except per Share Amounts) - -37-

Adjusted Operating Income Results Quarter Ended June 21, 2009 Quarter Ended June 22, 2008 Six Months Ended June 21, 2009 Six Months Ended June 22, 2008 Operating (Loss) Income $ (11.2) $ 16.7 $ (12.0) $ 28.3 Adjustments: Legal Settlement 20.0 - 20.0 - Anti-Trust Related Legal Expenses 4.1 2.4 8.5 2.4 Impairment Charge 0.6 - 0.6 - Restructuring Charge 0.2 - 1.0 - OPEIU Severance - 0.8 - 0.8 Total Adjustments 24.9 3.2 30.1 3.2 Adjusted Operating Income $ 13.7 $ 19.9 $ 18.1 $ 31.5 - -38- ($ in Millions)

Adjusted Net Income (loss) Results Quarter Ended June 21, 2009 Quarter Ended June 22, 2008 Six Months Ended June 21, 2009 Six Months Ended June 22, 2008 Net (Loss) Income (1) $ (31.1) $ 5.8 $ (41.0) $ 6.6 Adjustments: Legal Settlement 20.0 -- 20.0 -- Anti-Trust Related Legal Expenses 4.1 2.4 8.5 2.4 Impairment Charge 0.6 -- 0.6 -- Restructuring Charge 0.2 -- 1.0 -- Loss on Modification of Debt 0.1 -- 0.1 -- OPEIU Severance -- 0.8 -- 0.8 Tax Valuation Allowance 10.5 -- 10.5 -- Tax Impact of Adjustments (0.3) (0.5) (0.3) (0.6) Total Adjustments 35.2 2.7 40.4 2.6 Adjusted Net Income (Loss) $ 4.1 $ 8.5 $ (0.6) $ 9.2 - -39- ($ in Millions) (1) 2008 results are adjusted for retrospective application of changes in accounting. See impact of change in accounting for convertible notes and change in accounting for restricted stock share-based payment awards on page 44.

Adjusted Net Income (Loss) Per Diluted Share Quarter Ended June 21, 2009 Quarter Ended June 22, 2008 Six Months Ended June 21, 2009 Six Months Ended June 22, 2008 Net (Loss) Income, Per Diluted Share (1) $ (1.02) $ 0.19 $ (1.35) $ 0.21 Adjustments Per Share: Legal Settlement 0.65 -- 0.66 -- Anti-Trust Related Legal Expenses 0.14 0.08 0.29 0.08 Impairment Charge 0.02 -- 0.02 -- Restructuring Charge 0.01 -- 0.03 -- OPEIU Severance -- 0.03 -- 0.03 Tax Valuation Allowance 0.34 -- 0.34 -- Tax Impact of Adjustments (0.01) (0.02) (0.01) (0.02) Total Adjustments 1.15 0.09 1.33 0.09 Adjusted Net Income (Loss), Per Diluted Share $ 0.13 $ 0.28 $ (0.02) $ 0.30 - -40- ($) (1) 2008 results are adjusted for retrospective application of changes in accounting. See impact of change in accounting for convertible notes and change in accounting for restricted stock share-based payment awards on page 44.

Net (Loss) Income / Adjusted EBITDA Reconciliation Quarter Ended June 21, 2009 Quarter Ended June 22, 2008 Six Months Ended June 21, 2009 Six Months Ended June 22, 2008 Net (Loss) Income (1) $ (31.1) $ 5.8 $ (41.0) $ 6.6 Interest Expense, Net 9.2 10.4 18.7 21.5 Tax Expense 10.6 0.5 10.3 0.2 Depreciation and Amortization 14.8 15.9 29.5 31.6 EBITDA 3.5 32.6 17.5 59.9 Legal Settlement 20.0 -- 20.0 -- Anti-Trust Related Legal Expenses 4.1 2.4 8.5 2.4 Impairment Charge 0.6 -- 0.6 -- Restructuring Charge 0.2 -- 1.0 -- Loss on Modification of Debt 0.1 -- 0.1 -- OPEIU Severance -- 0.8 -- 0.8 Adjusted EBITDA $ 28.5 $ 35.8 $ 47.7 $ 63.1 - -41- ($ in Millions) Note: EBITDA is defined as net income plus net interest expense, income taxes, depreciation and amortization. We believe that EBITDA is a meaningful measure for investors as (i) EBITDA is a component of the measure used by our board of directors and management team to evaluate our operating performance, (ii) the senior credit facility contains covenants that require Horizon Lines, Inc. to maintain certain interest expense coverage and leverage ratios, which contain EBITDA and (iii) EBITDA is a measure used by our management team to make day-to-day operating decisions. (1) 2008 results are adjusted for retrospective application of changes in accounting. See impact of change in accounting for convertible notes and change in accounting for restricted stock share-based payment awards on page 44.

Operating Loss to Adjusted EBITDA Segment Reconciliation - -42- Second Quarter 2009 Second Quarter 2009 Second Quarter 2009 Second Quarter 2009 Second Quarter 2009 Second Quarter 2009 Liner Logistics Consolidated Operating Loss $ (8.8) $ (2.4) $ (11.2) Depreciation and Amortization 11.0 0.1 11.1 Amortization of Vessel Dry-docking 3.6 -- 3.6 EBITDA 5.8 (2.3) 3.5 Legal Settlement 20.0 -- 20.0 Anti-Trust Related Legal Expense 4.1 -- 4.1 Impairment Charge 0.6 -- 0.6 Restructuring Charge -- 0.2 0.2 Loss on Modification of Debt 0.1 -- 0.1 Adjusted EBITDA $ 30.6 $ (2.1) $ 28.5 ($ in Millions)

Operating Loss to Adjusted EBITDA Segment Reconciliation - -43- Six Months 2009 Six Months 2009 Six Months 2009 Six Months 2009 Six Months 2009 Six Months 2009 Liner Logistics Consolidated Operating Loss $ (7.2) $ (4.8) $ (12.0) Depreciation and Amortization 21.9 0.2 22.1 Amortization of Vessel Dry-docking 7.4 -- 7.4 EBITDA 22.1 (4.6) 17.5 Legal Settlement 20.0 -- 20.0 Anti-Trust Related Legal Expense 8.5 -- 8.5 Impairment Charge 0.6 -- 0.6 Restructuring Charge 0.8 0.2 1.0 Loss on Modification of Debt 0.1 -- 0.1 Adjusted EBITDA $ 52.1 $ (4.4) $ 47.7 ($ in Millions)

Changes In Accounting Additional non-cash interest expense with adoption of FSP APB 14-1 and impact of change in accounting for share based payment awards ($) * See Adjusted Net Income and Adjusted Net Income Per Diluted Share reconciliations on pages 39 and 40. 2008 and 2009 Quarterly Impact 2008 and 2009 Quarterly Impact 2008 and 2009 Quarterly Impact 2008 and 2009 Quarterly Impact 2008 and 2009 Quarterly Impact 2008 and 2009 Quarterly Impact Q1 Q2 Q3 Q4 Year As reported 2008 Adjusted* Net Income Per Diluted Share $ 0.07 $ 0.33 $ 0.53 $ 0.09 $ 1.02 Impact of Change in Accounting for Convertible Notes and Participating Securities (0.05) (0.05) (0.05) (0.05) (0.20) 2008 Adjusted Net Income Per Diluted Share, After Retrospective Application $ 0.02 $ 0.28 $ 0.48 $ 0.04 $ 0.82 2009 Adjustments to Net Income Per Share $ (0.05) $ (0.05) $ (0.05) $ (0.06) $ (0.21) - -44-

EX-99.4

Exhibit 99.4

PRESS RELEASE

For information contact:
Jim Storey
Director of Investor Relations & Corporate Communications
704.973.7107
jstorey@horizonlines.com

HORIZON LINES INC. DECLARES REGULAR DIVIDEND

CHARLOTTE, NC, July 23, 2009 — Horizon Lines, Inc. (NYSE: HRZ), today announced that its Board of Directors has voted to declare a regular quarterly cash dividend of $0.11 per share, payable on September 15, 2009, to stockholders of record on September 1, 2009. The dividend was approved during the regularly scheduled quarterly meeting of the Board of Directors, which was held today.

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 operates five 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, 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.