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): October 22, 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

EX-99.1

EX-99.2

EX-99.3

EX-99.4

Item 2.02. Results of Operations and Financial Condition.

     On October 23, 2009, Horizon Lines, Inc. (the “Company”) issued a press release announcing its financial results for the third fiscal quarter ended September 20, 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 third quarter 2009 earnings release and 2009 outlook 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 October 22, 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 December 15, 2009 to all stockholders of record as of the close of business on December 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 include certain unusual and certain non-cash items and net proceeds from sale of fixed assets and to exclude certain uses of cash flow; 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 management 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 free cash flow provides supplemental information about the Company’s ability to fund its working capital needs and capital expenditures, and to pay interest and service debt.

     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 October 23, 2009.
99.2	Transcript of conference call held on October 23, 2009.
99.3	Earnings Release Presentation for the Third Fiscal Quarter September 20, 2009.
99.4	Press Release of Horizon Lines, Inc., dated October 22, 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: October 28, 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. October 23, 2009.
99.2	Transcript of conference call held on October 23, 2009.
99.3	Earnings Release Presentation for the Third Fiscal Quarter Ended September 20, 2009.
99.4	Press Release of Horizon Lines, Inc., dated October 22, 2009.

EX-99.1

Exhibit 99.1

PRESS RELEASE

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

HORIZON LINES REPORTS THIRD-QUARTER FINANCIAL RESULTS

• Volumes Down 5.7%; Rates Flat From Year Ago, Net of Fuel

• Adjusted EBITDA Totals $36.9 Million

• Adjusted Free Cash Flow of $23.8 million

CHARLOTTE, NC, October 23, 2009 — Horizon Lines, Inc. (NYSE: HRZ), today reported results for its fiscal third quarter ended September 20, 2009.

On a GAAP basis, net income totaled $8.4 million, or $0.27 per diluted share, on revenue of $308.0 million. This compares with net income of $11.1 million, or $0.37 per diluted share on revenue of $352.6 million for the same period a year ago. Adjusted third-quarter 2009 net income totaled $11.4 million, or $0.37per diluted share, after excluding antitrust-related legal expenses and vessel impairment charges totaling $3.0 million, or $0.10 per share after tax. Adjusted net income for the 2008 third quarter totaled $14.7 million, or $0.48 per diluted share, which excludes antitrust-related legal fees totaling $3.6 million, or $0.11 per share after tax.

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

	Quarters Ended				Nine Months Ended
	9/20/09		9/21/08		9/20/09			9/21/08
GAAP:
Operating revenue	$	308.0	$	352.6	$	858.8		$	989.5
Net income (loss)(1)	$	8.4	$	11.1	$	(32.6	)	$	17.7
Net income (loss) per diluted share(1)	$	0.27	$	0.37	$	(1.07	)	$	0.57
Non-GAAP:
EBITDA	$	33.8	$	37.6	$	51.2		$	97.6
Adjusted EBITDA*	$	36.9	$	42.2	$	84.6		$	105.4
Adjusted net income*	$	11.4	$	14.7	$	10.8		$	23.9
Adjusted net income per diluted share*	$	0.37	$	0.48	$	0.35		$	0.78

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

Horizon Lines 3rd Quarter 2009 Page 2 of 14

“During the third quarter, we continued to successfully battle the economic turbulence that gripped our markets, focusing on cost containment, customer service and schedule integrity,” said Chuck Raymond, Chairman, President and Chief Executive Officer. “The 5.7% volume decline from the third quarter of 2008 was an improvement over the past three quarters. We maintained stable margins relative to a year ago, although revenue-per-container rates were flat. More than half of the 12.6% revenue decline was due to reduced fuel surcharges, as fuel prices were significantly lower than 2008.

“Cash flow was relatively strong, and we voluntarily made debt payments of $10 million during the quarter.” Mr. Raymond said. “We completed the quarter well-positioned to withstand an ongoing weak environment, and to capitalize quickly on even a mild recovery.

“In our liner business, our third-quarter cargo volumes continued to compare very favorably with other transportation segments, reflecting 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. “Our logistics business continued to face the challenges of building a business through organic growth in the worst recession since the Great Depression. We expect our logistics business to continue to operate below breakeven levels for the foreseeable future, but we continue to believe that it remains an engine for the long-term growth of our company.”

Third-Quarter 2009 Financial Highlights

	Operating Revenue — Operating revenue declined 12.6% to $308.0 million from $352.6 million a year ago. The largest factors in the $44.6 million revenue decline were a $23.4 million reduction in fuel surcharges, followed by $13.4 million decrease from a 5.7% reduction in volume. The volume decline was due to a continuing weak macroeconomic environment that impacted discretionary consumer spending across all tradelanes; specifically, flattening economic growth and cautious consumer sentiment in Alaska, a decline in visitors and construction in Hawaii, and the ongoing recession in Puerto Rico.
	Operating Income — GAAP operating income for the third quarter totaled $19.0 million, compared with $21.8 million for the third quarter of 2008. The 2009 GAAP operating income includes expenses of $3.1 million consisting of $1.9 million in antitrust-related legal expenses and $1.2 million in impairment charges for vessels. The 2008 GAAP operating income includes $4.6 million in antitrust-related legal expenses. Excluding these items, adjusted operating income totaled $22.1 million for the third quarter of 2009, and $26.4 million for the prior year’s third quarter. The decline from last year was largely due to reduced volumes, lower non-transportation revenue, and reduced logistics revenue, which were partially offset by non-union workforce reduction savings.
	EBITDA — EBITDA totaled $33.8 million for the 2009 third quarter, compared with $37.6 million for the same period a year ago. Adjusted EBITDA for the 2009 third quarter was $36.9 million, compared with $42.2 million for 2008. EBITDA and adjusted EBITDA for the 2009 and 2008 third quarters were impacted by the same factors affecting operating income.

Horizon Lines 3rd Quarter 2009 Page 3 of 14

Shares Outstanding — The company had a weighted daily average of 30.9 million diluted shares outstanding for the third quarter of 2009, compared with 30.4 million for the third quarter of 2008.

Nine-Month Results — For the nine months ended September 20, 2009, operating revenue decreased 13.2% to $858.8 million from $989.5 million for the same period in 2008. EBITDA totaled $51.2 million compared with $97.6 million a year ago. Adjusted EBITDA was $84.6 million compared with $105.4 million a year ago. The net loss for the nine-month period totaled $(32.6) million, or $(1.07) per share, while adjusted net income totaled $10.8 million, or $0.35 per diluted share. In the same period a year ago, net income totaled $17.7 million, or $0.57 per diluted share, while adjusted net income was $23.9 million, or $0.78 per diluted share. Adjusted EBITDA and adjusted net income for the 2009 nine-month period exclude a $20.0 million charge related to the previously disclosed class-action legal settlement in Puerto Rico, a $10.5 million tax valuation allowance, $10.4 million in antitrust-related legal expenses, $1.9 million in impairment charges, $1.0 million in restructuring costs and a $0.1 million loss on the previously disclosed modification of the company’s credit agreement. Adjusted EBITDA and net income for the 2008 nine-month period exclude $7.0 million in antitrust-related legal expenses and $0.8 million related to early retirement for certain union employees.

Please see attached schedules for reconciliation of third-quarter and nine-month 2009 and 2008 reported GAAP results and Non-GAAP adjusted results.

Outlook

“We face a challenging fourth quarter, which we expect to be characterized by lingering economic weakness that will continue to impact volumes to varying degrees across all of our tradelanes, as well as in our logistics business,” Mr. Raymond said. “While our third-quarter volume performance indicates we might be coming off the bottom, we expect the recovery to be slow, muted and disparate.

“Horizon Lines remains well positioned in this environment,” Mr. Raymond continued. “We are intensely focused on both customer service and cost containment, and are targeting selective revenue growth opportunities even in these challenging times. We recently added a Tampa call on our Houston-to-San Juan sailing, an addition that provides new options for our customers, and new revenue potential for Horizon Lines at little incremental cost.

“Despite the ongoing economic challenges, our outlook for 2009 remains consistent with our second-quarter observations,” Mr. Raymond said. “We anticipate that 2009 adjusted EBITDA will be below the $130.0 million reported last year, but remain above levels that would jeopardize compliance with the financial covenants in our credit agreement. We also currently expect adjusted free cash flow for the year to approximate the level of $59.9 million reached last year, despite a decline in EBITDA. As we move through the fourth quarter and into 2010, we believe Horizon Lines possesses the financial resources and operational strength to endure a protracted economic recovery and to quickly capitalize on even modest recoveries in our tradelane economies.”

Horizon Lines 3rd Quarter 2009 Page 4 of 14

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 34382121. A copy 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 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, one of which is classified as held for sale, 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

Horizon Lines 3rd Quarter 2009 Page 5 of 14

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 3rd Quarter 2009 Page 6 of 14

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

				December 21,
	September 20,			2008
	2009			(As Adjusted) (1)
Assets
Current assets
Cash	$	4,390		$	5,487
Accounts receivable, net of allowance of $7,788 and $8,217 at September 20, 2009 and December 21, 2008, respectively		137,850			135,020
Prepaid vessel rent		5,940			4,471
Materials and supplies		27,940			23,644
Deferred tax asset		4,366			7,450
Other current assets		12,620			10,703
Total current assets		193,106			186,775
Property and equipment, net		195,198			208,453
Goodwill		317,068			317,068
Intangible assets, net		111,409			125,542
Deferred tax asset		—			10,669
Other long-term assets		22,809			24,122
Total assets	$	839,590		$	872,629
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	34,897		$	41,947
Current portion of long-term debt		15,939			6,552
Accrued vessel rent		—			5,421
Other accrued liabilities		106,194			97,720
Total current liabilities		157,030			151,640
Long-term debt, net of current		534,387			526,259
Deferred rent		23,703			27,058
Deferred tax liability		5,458			—
Other long-term liabilities		20,694			30,836
Total liabilities		741,272			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, 34,029 shares issued and 30,229 shares outstanding as of September 20, 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		199,454			199,644
(Accumulated deficit) retained earnings		(17,198	)		22,094
Accumulated other comprehensive loss		(5,740	)		(6,702	)
Total stockholders’ equity		98,318			136,836
Total liabilities and stockholders’ equity	$	839,590		$	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 3rd Quarter 2009 Page 7 of 14

Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)

	Quarters Ended						Nine Months Ended
				September 21,						September 21,
	September 20,			2008			September 20,			2008
	2009			(As Adjusted) (1)			2009			(As Adjusted) (1)
Operating revenue	$	307,972		$	352,638		$	858,807		$	989,544
Operating expense:
Cost of services (excluding depreciation expense)		248,364			287,400			704,362			809,069
Depreciation and amortization		11,285			11,449			33,425			34,325
Amortization of vessel dry-docking		3,530			4,393			10,936			13,168
Selling, general and administrative		23,739			26,513			79,512			80,517
Settlement of class action lawsuit		—			—			20,000			—
Restructuring charge		—			—			1,001			—
Impairment charge		1,208			—			1,867			—
Miscellaneous expense, net		890			1,095			773			2,392
Total operating expense		289,016			330,850			851,876			939,471
Operating income		18,956			21,788			6,931			50,073
Other expense:
Interest expense, net		10,563			10,016			29,249			31,528
Loss on modification of debt		—			—			50			—
Other expense (income), net		1			(4	)		11			(2	)
Income (loss) before income tax expense		8,392			11,776			(22,379	)		18,547
Income tax (benefit) expense		(46	)		673			10,219			885
Net income (loss)	$	8,438		$	11,103		$	(32,598	)	$	17,662
Net income (loss) per share:
Basic	$	0.28		$	0.37		$	(1.07	)	$	0.58
Diluted	$	0.27		$	0.37		$	(1.07	)	$	0.57
Number of shares used in calculation:
Basic		30,430			30,304			30,431			30,330
Diluted		30,914			30,393			30,431			30,583
Dividends declared per common share	$	0.11		$	0.11		$	0.33		$	0.33

(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 3rd Quarter 2009 Page 8 of 14

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

	Nine Months
				September 21,
	September 20,			2008
	2009			(As Adjusted) (1)
Cash flows from operating activities:
Net (loss) income	$	(32,598	)	$	17,662
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation		17,950			18,339
Amortization of other intangible assets		15,475			15,986
Amortization of vessel dry-docking		10,936			13,168
Restructuring charge		1,001			—
Impairment charge		1,867			—
Loss on modification of debt		50			—
Amortization of deferred financing costs		2,081			2,022
Deferred income taxes		10,312			(732	)
Gain on equipment disposals		(45	)		(7	)
Stock-based compensation		2,464			3,532
Accretion of interest on 4.25% convertible notes		7,428			6,601
Changes in operating assets and liabilities:
Accounts receivable		(2,551	)		(28,521	)
Materials and supplies		(4,425	)		(1,655	)
Other current assets		(2,349	)		(593	)
Accounts payable		(7,050	)		(13,054	)
Accrued liabilities		10,466			17,590
Vessel rent		(9,650	)		(9,657	)
Vessel dry-docking payments		(11,269	)		(9,291	)
Other assets/liabilities		(664	)		1,613
Net cash provided by operating activities		9,429			33,003
Cash flows from investing activities:
Purchases of property and equipment		(8,181	)		(26,351	)
Purchase of business		—			(198	)
Proceeds from the sale of property and equipment		1,009			350
Net cash used in investing activities		(7,172	)		(26,199	)
Cash flows from financing activities:
Borrowing under revolving credit facility		64,000			73,000
Payments on revolving credit facility		(49,000	)		(37,500	)
Payments on long-term debt		(4,913	)		(4,902	)
Dividends to stockholders		(10,041	)		(9,985	)
Payments of financing costs		(3,475	)		(139	)
Common stock issued under employee stock purchase plan		75			38
Proceeds from exercise of stock options		—			13
Purchase of treasury stock		—			(29,330	)
Payments on capital lease obligation		—			(81	)
Net cash provided by financing activities		(3,354	)		(8,886	)
Net decrease in cash		(1,097	)		(2,082	)
Cash at beginning of period		5,487			6,276
Cash at end of period	$	4,390		$	4,194

(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 3rd Quarter 2009 Page 9 of 14

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

	Quarter Ended		Quarter Ended		Nine Months Ended		Nine Months Ended
	September 20, 2009		September 21, 2008		September 20, 2009		September 21, 2008
Operating Income	$	19.0	$	21.8	$	6.9	$	50.1
Adjustments:
Legal Settlement		—		—		20.0		—
Anti-Trust Legal Expenses		1.9		4.6		10.4		7.0
Impairment Charge		1.2		—		1.9		—
Restructuring Charge		—		—		1.0		—
OPEIU Severance		—		—		—		0.8
Total Adjustments		3.1		4.6		33.3		7.8
Adjusted Operating Income	$	22.1	$	26.4	$	40.2	$	57.9

Horizon Lines 3rd Quarter 2009 Page 10 of 14

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

	Quarter Ended			Quarter Ended			Nine Months Ended			Nine Months Ended
	September 20, 2009			September 21, 2008			September 20, 2009			September 21, 2008
Net Income (Loss) (1)	$	8.4		$	11.1		$	(32.6	)	$	17.7
Adjustments:
Legal Settlement					—			20.0			—
Anti-Trust Legal Expenses		1.9			4.6			10.4			7.0
Impairment Charge		1.2			—			1.9			—
Restructuring Charge		—			—			1.0			—
Loss on Modification of Debt		—			—			0.1			—
OPEIU Severance		—			—			—			0.8
Tax Valuation Allowance		—			—			10.5			—
Tax Impact of Adjustments		(0.1	)		(1.0	)		(0.5	)		(1.6	)
Total Adjustments		3.0			3.6			43.4			6.2
Adjusted Net Income	$	11.4		$	14.7		$	10.8		$	23.9

(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 3rd Quarter 2009 Page 11 of 14

Horizon Lines, Inc.
Adjusted Net Income Per Diluted Share

	Quarter Ended		Quarter Ended			Nine Months Ended			Nine Months Ended
	September 20, 2009		September 21, 2008			September 20, 2009			September 21, 2008
Net Income (Loss) Per Diluted Share (1)	$	0.27	$	0.37		$	(1.07	)	$	0.57
Adjustments Per Share:
Legal Settlement		—		—			0.66			—
Anti-Trust Legal Expenses		0.06		0.14			0.34			0.23
Impairment Charge		0.04		—			0.06			—
Restructuring Charge		—		—			0.03			—
OPEIU Severance		—		—			—			0.02
Tax Valuation Allowance		—		—			0.35			—
Tax Impact of Adjustments		—		(0.03	)		(0.02	)		(0.04	)
Total Adjustments		0.10		0.11			1.42			0.21
Adjusted Net Income	$	0.37	$	0.48		$	0.35		$	0.78

(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 3rd Quarter 2009 Page 12 of 14

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

	Quarter Ended		Quarter Ended		Nine Months Ended			Nine Months Ended
	September 20, 2009		September 21, 2008		September 20, 2009			September 21, 2008
Net Income (Loss) (1)	$	8.4	$	11.1	$	(32.6	)	$	17.7
Interest Expense, Net		10.6		10.0		29.2			31.5
Tax Expense		—		0.7		10.2			0.9
Depreciation and Amortization		14.8		15.8		44.4			47.5
EBITDA		33.8		37.6		51.2			97.6
Legal Settlement		—		—		20.0			—
Anti-Trust Legal Fees		1.9		4.6		10.4			7.0
Impairment Charge		1.2		—		1.9			—
Restructuring Charge		—		—		1.0			—
Loss on Modification of Debt		—		—		0.1			—
OPEIU Severance		—		—		—			0.8
Adjusted EBITDA	$	36.9	$	42.2	$	84.6		$	105.4

(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 3rd Quarter 2009 Page 13 of 14

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

Third Quarter 2009

	Liner		Logistics			Consolidated
Operating Income (Loss)	$	21.2	$	(2.2	)	$	19.0
Depreciation and Amortization		11.1		0.2			11.3
Amortization of Vessel Dry-docking		3.5		—			3.5
EBITDA		35.8		(2.0	)		33.8
Anti-Trust Legal Expenses		1.9		—			1.9
Impairment Charge		1.2		—			1.2
Adjusted EBITDA	$	38.9	$	(2.0	)	$	36.9

Horizon Lines 3rd Quarter 2009 Page 14 of 14

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

Nine Months 2009

	Liner		Logistics			Consolidated
Operating Income (Loss)	$	14.0	$	(7.1	)	$	6.9
Depreciation and Amortization		33.0		0.4			33.4
Amortization of Vessel Dry-docking		10.9		—			10.9
EBITDA		57.9		(6.7	)		51.2
Legal Settlement		20.0		—			20.0
Anti-Trust Legal Expenses		10.4		—			10.4
Impairment Charge		1.9		—			1.9
Restructuring Charge		0.8		0.2			1.0
Loss on Modification of Debt		0.1		—			0.1
Adjusted EBITDA	$	91.1	$	(6.5	)	$	84.6

# # #

EX-99.2

Exhibit 99.2

On October 23, 2009, Horizon Lines, Inc. hosted a conference call to discuss financial results for the third quarter ended September 20, 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 Ashley, and I will be your conference operator today. At this time, I would like to welcome everyone to the Horizon Lines third-quarter earnings release conference call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer period. (Operator Instructions). As a reminder, ladies and gentlemen, this conference is being recorded today, Friday, October 23, 2009. 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, Ashley, and good morning, everyone, and welcome to Horizon Lines third-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. Before we get started, I want to remind everyone that copies of our press release and 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 remarks this morning contain certain forward-looking statements and that actual results could differ materially from those projected today. These forward-looking statements speak as of today and we undertake no obligation to update them. Factors that might affect future results are discussed in our filings with the SEC and we encourage you to review these detailed Safe Harbor and risk factor disclosures. Please also note that where appropriate we will continue to refer to non-GAAP financial measures such as EBITDA to evaluate our business. Reconciliations of non-GAAP financial measures to GAAP financial measures are included in our earnings release and the accompanying materials. Now, let me turn the call over to Chuck Raymond.
Chuck Raymond	Thank you, Jim, and welcome, everyone. This morning we reported a solid third-quarter performance in the face of some very stiff ongoing economic headwinds. We successfully battled a persistently soft volume environment through an intense focus on customer service and cost

containment. Revenue and volumes continued to contract during the quarter, but at a somewhat improving pace, and while we did experience some pressure on rates, our margins continued to hold up well and cash flow was strong.

Throughout the quarter, the schedule integrity of our vessels remained high and that was despite some challenging weather. We also planned, and just a few weeks ago launched, a new service enhancement on our Puerto Rico tradelane, adding a call in the Port of Tampa to our Houston to San Juan Gulf express route.

So even in this difficult environment, we continue to identify opportunities to enhance customer service and provide a cost-effective solution with the potential to improve EBITDA in this service.

Our logistics arm continued to refine its focus on fewer segments of the business that offer the best potential for long-term growth opportunities. This has been a challenging environment in which to start a business, and while we don’t expect logistics to contribute to earnings in the foreseeable future, we firmly believe that it holds promise as a long-term growth engine for Horizon Lines and that the steps logistics is taking now will begin yielding greater benefits as the economy moves back on track.

To summarize, we managed our business well in the face of a challenging economic environment and we ended the quarter adequately capitalized and with a stable financial foundation.

Turning for a moment to the ongoing Department of Justice antitrust investigation. All I can say is that we continue to cooperate fully in that process. However, we can offer no timing of when this issue will be finally resolved. Looking at the remainder of the year, we expect economic challenges to continue through the fourth quarter and probably into 2010. The weaknesses in our markets appear to be bottoming out. The economic stimulus funds from the American Recovery and Reinvestment Act offer promise for all four of our liner markets. The Puerto Rico tradelane is where we are seeing the most positive signals, and the $6.1 billion infusion to Puerto Rico has already started and is coming at a very fortunate time as the Commonwealth Administration is restructuring the balance between the public and private sectors.

There are notable benefits in our other markets as well though not quite as large as in Puerto Rico. So on balance and based on the general economic outlook for 2010, we see something in the range of 2% GDP growth in the overall US economy and real consumer spending growth close to 1%.

With that, we think the recovery will be slow and somewhat uneven.

Let me try to put our review this morning in perspective. We are operating in the wake of the most destructive recession since the Great Depression. It is kind of like the aftermath of a powerful hurricane. The worst has passed, but the winds have not completely died down and a lot of destruction remains. It is obvious that a return to any normalcy could take more time and possibly a very long time.

Now picture the transportation industry against this backdrop. Volumes that took years to build have evaporated over the past year. International container volumes to the US remained down significantly and even on the West Coast down about 20% year-to-date, and also at rates well below where they were a year ago. Intermodal rail volumes in the US were off more than 16% in the third quarter, while US truck tonnage was down about 9%. These volume levels are improving from earlier in the year, by the way.

So, from our perspective, a return to normal for this industry remains a very slow climb back. Now how does Horizon Lines fit into this scenario? Overall, we are uniquely positioned as a domestic ocean carrier to continue to make progress. We have the resources, the customer base and the cost control measures in place to endure a flat environment and to make significant progress and even a mild recovery. More specifically, as primarily a US domestic ocean carrier, we manage and deliver cargo that is vital to the basic needs of businesses and people in our unique tradelanes.

So our business, while still impacted by the economic uncertainties in each of our tradelanes, is relatively stable. I think this is particularly apparent when you compare the extent of our volume declines with those of other transportation sectors that we’ve seen over the last year or so.

Financially, we are fortunate to be operating in this environment with a solid capital structure that enables us to endure periods of economic uncertainty. So regardless of the pace and scope of the recovery, we are confident that Horizon Lines is well positioned. We have not changed our financial outlook for the remainder of 2009, and Mike Avara will cover that with you in a few minutes.

Finally, we announced late yesterday that our Board of Directors has again approved payment of our regular $0.11 quarterly dividend. We believe paying this dividend is consistent with our policy of providing cash back to investors in appropriate proportion to our long-term earnings and free cash flow expectations.

	Before I take questions or turn this over to John, there is one final comment I will make. In San Juan, Puerto Rico this morning, shortly after midnight, there was an explosion at a fuel storage facility owned and operated by the Caribbean Gulf Refinery Corporation. As a caution, the port was closed by the Coast Guard earlier in the day, but is now reopening and our vessels are on time. Our local terminal land operations have been operating normally since seven o’clock this morning.
	This was highlighted on CNN just a short while ago, so we want to let you know that to the best of our knowledge, the local refining capacity really isn’t affected. It’s really storage, so the short-term needs are able to be replaced. We have offered local authorities our full cooperation in moving materials immediately from Florida to the Northeast of Puerto Rico. We have high-speed sailings from both origins this evening and another from Jacksonville next Tuesday. We’ve got plenty of fuel on our ships to maintain services without the need to tap local sources.
	Actually, the diesel, the jet fuel, and gasoline stored there mainly serve local needs, so there will probably be tight supplies for a while. Historically, Horizon Lines has not been a purchaser of residual fuels there, and we just wanted to make you aware of this to give clarity to the situation.
	So with that, let me turn it over to John.
John Keenan	Thank you, Chuck, and good morning, everyone. This morning I will provide you with an update on our line of business. I will start by reviewing our tradelane economies.
	Starting with Alaska on page 8, the state’s economic slowdown has been muted relative to the lower 48, but overall, predictions are for a fairly flat economy through next year. The unemployment rate has been climbing slowly and job losses are occurring in the retail and wholesale sectors, as well as in tourism and construction, all of which are important to our business.
	Consumers continue to be cautious in this environment, given the impact of the recession on their investments, their retirement funds and their overall confidence. On the positive side, Alaskans this month have received their permanent fund dividend totaling just over $1300 for each resident. This is down from last year’s payout of just over $2000. You will also recall that last year residents received an additional $1200 for a special one-time energy dividend.
	The permanent fund dividend is based on a five-year rolling average tied to the fund’s investment returns. The fund stood at $34 billion at

mid-October, so we expect sizable annual payouts to continue for the foreseeable future. Looking at our business in Alaska, we remain well aligned with the big-box retailers, which as a group have fared better in the recession than many other retail segments. We in turn have benefited as a steady supplier of the basic goods that they sell.

Looking at Hawaii, on page 9, the worst of the recession appears to be behind us, although unemployment rates are still edging higher and expected to hover at 30-year highs for the next several months. So consumers understandably are in a reluctant mood.

However, some of the island’s other key indicators show signs of stabilizing. Visitor arrivals for the year are now projected to be down 4.4% compared with July’s forecast of down 6.8% although visitor spending is projected to fall 12% from last year due to widespread discounts.

Construction remains weak, while the military spending is stable. Projected declines for real personal income and gross state product have also moderated somewhat from last quarter. Relative to last year, our volumes are down about as expected against this backdrop, although the year-over-year percentage decline has moderated relative to the first and second quarters. As in Alaska, we believe we are aligned with strong, growing customers and have seen some improvement from key big-box retail accounts.

Looking at Guam, plans continue to take shape to fund the infrastructure buildout that will be necessary to support Guam’s projected population surge in 2014. That is when US Marines, dependents, and support personnel will relocate to Guam from Okinawa.

A key funding milestone for this project, the National Defense Authorization Act, is the approved $800 million in spending for 2010. Much of this will go to planning, but we expect to see some positive impact on volumes as early as the fourth quarter of 2010, accelerating into 2011.

Turning to Puerto Rico on page 10, the economy remains in its fourth year of deep recession with unemployment projected to hit 17% after the latest round of public worker layoffs. However, the new administration is making some tough decisions to foster long-term economic growth and is now projecting a modest rise in GNP for the fiscal year ending next June. We think this is making the business climate hopeful.

The Fortuno Administration has also aggressively pursued, and is in line to receive, federal economic stimulus funds totaling about $6.1 billion and is putting a good portion of that money immediately to work by placing it in the hands of its worker population. This year, $1.2 billion of this funding is being paid out in checks to an estimated 85% of the island’s workforce. This equates to about $400 per worker by year-end and another $400 is slated to be paid to each worker next July on top of the other stimulus money that is earmarked for local capital improvements and economic development projects.

According to the Commonwealth’s estimates, Puerto Rico’s economic stimulus plan is expected to create 125,000 jobs over the next four years and help stabilize unemployment. The Administration is taking some difficult steps to accomplish this and recently announced a layoff of nearly 17,000 public workers, which comes on top of a public workforce reduction of 8,000 earlier this year.

The move is designed to cut annual spending this fiscal year by some $2 billion, which will help reduce the island’s $3.2 billion budget deficit and protect Puerto Rico’s credit rating, which in turn should ensure continued access to future funding.

Looking at our business in this tradelane, our volume declines in the third quarter were at a significantly reduced rate from the second quarter. We also have been very successful with our annual reefer contract renewals during this quarter, so our customer relationships remain strong.

Also as you know, we recently added a Tampa call to our Houston to San Juan service, which is providing numerous opportunities for new business. We believe this service has potential to add approximately $1 million in earnings annually.

On page 11, you can see the estimates for funds expected from the federal economic stimulus program. We have not experienced any impact yet in our Alaska and Hawaii markets. Although off to a slow start, the program should benefit volumes to some degree in 2010 and we continue to search out and to track these opportunities in each tradelane. As I just noted, federal stimulus money already is flowing into Puerto Rico and we expect it to accelerate next year.

Turning to page 12, you can see that the overall container volume declined 5.7% for the quarter, which is an improvement from the 9.8% decline in the second quarter. Volume declines in each tradelane also showed an improving trend.

Unit revenue on page 13 shows that revenue per container decreased 7.5%

from a year ago due to lower fuel surcharges. Revenue per container excluding fuel was basically flat at $3,229 per container. This was due partly to increased rate pressures as short volumes persisted across our markets, and partly due to a jump in lower margin automobile volumes as a result of the cash for clunkers program.

Year to date, we are averaging a 2% rate increase per container, net of fuel. We expect rate pressures to continue until overall volumes begin showing more recovery.

The vessel performance metrics that support our emphasis on schedule integrity are on page 14. Vessel on-time arrival in the third quarter was 90% compared with 92% last year. We experienced rough weather in all three of our tradelanes, but our arrival percentage which we measure to the minute held up well.

Our excellence in vessel operations was recognized early in the third quarter when we learned that we were ranked number one in the survey of on-time performance among worldwide carriers. The Drury Survey measured 1,700 vessels in the second quarter and Horizon Lines topped the list. We think this helps demonstrate that we do an excellent job maintaining our vessels and providing on-time service to our customers and that newer vessels don’t necessarily equate to better service.

Our capacity utilization was 61%, down from 66% last year but up slightly from 60% in the second quarter. Our decline in capacity utilization continues to reflect a soft volume environment. The good news is that our capacity will be there when the markets rebound.

As we have been saying, cost containment and revenue enhancement initiatives are crucial in this reduced volume environment, and on page 15, we provide some examples of our ongoing initiatives. As I already have discussed, we added the Tampa service, which presents additional revenue opportunities at very little incremental costs. In the third quarter, we also continued to aggressively and successfully pursue our fuel conservation initiatives. We continued with our efforts to reduce vessel crew overtime, improve vessel and equipment maintenance expenses and productivity, and reduce costs related to our corporate suppliers.

Looking forward, I think it is important to point out that our vessel network has significant operating leverage in even a mild economic recovery. We are positioned with the ability to increase cargo volumes by 50% from current levels without requiring the addition of any vessels or any other significant fixed costs.

With that, I’ll hand the call over to Brian.

Brian Taylor	Thank you, John. Good morning, everyone. As I discussed on previous calls, logistics remains in the developmental stages of our expansion, primarily continuing to invest in the people and technology needed to support our organic growth strategy. Implementing an organic strategy takes time, but developing a robust pipeline of potential business with some key Horizon Lines customers should really allow the acceleration of our growth as the economy begins to rebound.
	Our expansion has been slow during these difficult times, but a long-term position in logistics remains a key strategic initiative for the entire Horizon organization.
	During this past quarter, we continued to focus on the realignment of our direct logistics sales force around the business segments with the most significant upside opportunities. This has also recently been expanded to include further engagement and integration of the liner sales team in the broader logistics sales process. Simultaneously, we have continued to make operational investments in our domestic LTL transportation platform, which resulted in a 200% increase in shipment growth in the last three months.
	Our NVO business continues to expand, but, with sluggish overall import volumes, the rates and margins have been lower than what we anticipated. These two business lines are really showing good promise and will be a source of continued focus for the organization going forward.
	Turning to slide 18, one of the primary objectives in 2009 has been to seek expansion within our core lines of business and we are pursuing this aggressively each and every quarter. Within our freight brokerage business, the cross-border Mexico sector has shown solid performance again as the volumes of raw materials and finished goods flowing to and from the Golden Triangle was up 15%.
	As I noted on the previous slide, the expansion of our LTL platform has really grown nicely. We are now seeing the integration of this application within the supply chain of our existing Horizon Lines customers.
	The line haul trucking industry however remains in a continued overcapacity situation and this has been a drag on revenue and margin growth in our full truckload division. The empty mile reduction initiative managed by the brokerage team does remain a critical focus that also helps support the liner company. This effort really continued to ramp up in this past quarter with over 45,000 empty miles eliminated, bringing the year-to-date total close to 200,000.

	We are continuing to see growth in the volume of leads and shipments moving through our NVOCC network, but as I had mentioned previously, rate and margin compression, particularly in the Pacific, has hampered overall growth in revenue. We have been able to partially offset this with a growing volume of export shipments fueled primarily by our weak US dollar and we expect to see a continuation of this trend moving forward.
	In the drayage and warehouse sector, the LA warehouse venture, which we finalized in May, really put logistics in a great position to pick up new distribution programs. We are now handling incremental cross dock and trans loading volumes in the high-tech and retail sectors, and we expect these programs will add new drayage business to the West Coast trucking operation in the future.
	The big-box drayage business that I mentioned on our last quarterly call has ramped up in the past three months and the existing relationships that these two customers have with the liner operation has really helped us facilitate the reduction of empty mileage costs for Horizon Lines.
	Within the expedited line of business, the high-tech and alternative energy verticals have continued to grow, and we have actually seen some crossover integration now into our NVO business and warehouse and brokerage lines. The focus on these segments clearly will yield further expansion going forward.
	While we have seen growth in the international air freight volumes we are handling, the domestic land side of our expedited business remains a challenge for us in the quarter. This recessionary environment has forced many customers to trade down the service spectrum, really looking for more cost-effective methods to move cargo with less emphasis on the shortest transit times.
	Like many other businesses, we clearly expect the ongoing economic challenges to pressure volume growth and profitability until economic growth returns. However, we believe the successful integration or execution of our strategy now will position logistics and our partners at Horizon Lines for solid growth once the economy begins to recover.
	With that, I will turn the call over to Mike.
Mike Avara	Brian, thank you and good morning, everyone. I am pleased to report that we delivered solid third-quarter results despite the ongoing weak economic environment both globally and in our tradelanes. In this challenging environment, we experienced a decline in volume of 5.7% but I would note it is at a reduced level from each of the past three quarters. Thereby resulting in the best relative performance since the third quarter of 2008.

We also faced increased pricing pressure due to the continued recession and soft volume environment, which resulted in flat container rates net of fuel. In this environment, we focused on more aggressive cost containment to combat both the recession and contractual expense increases. We did this a couple of ways: by building on our EDGE process improvement initiative that we launched back in 2006 and supplemented this by our other cost reduction opportunities we identified in 2008 and 2009 as signs of economic weakness increased.

We also concentrated on select initiatives to generate additional revenue, as well as high-value cargo that to some extent helped mitigate increased rate pressure and a surge in lower volume or lower margin automobiles. As a result, we delivered adjusted EBITDA of nearly $37 million, maintained stable EBITDA margins at 12%, and generated strong adjusted free cash flow of nearly $24 million.

We were also able to voluntarily repay $10 million of our debt in the third quarter and we will make another payment of $5 million on Monday. And while we see no quick recovery from this recession, we believe we remain well positioned financially in this still challenging environment.

So starting on page 20, I will walk you through the financials in a bit more detail. Third-quarter operating revenue declined $44.6 million or 12.6% from the third quarter of 2008. However again, we were able to maintain our margins at 12%, which were unchanged from a year ago.

As you can see on page 21, the largest component of the revenue decline was reduced fuel surcharges which fell $23.4 million due to lower fuel prices. Next, a 5.7% decline in volume, that John referenced, for the quarter resulted in a $13.4 million drop in revenue. Rounding out the decline in revenue would be the non-transportation and logistics revenue shortfall.

Turning to adjusted operating income on page 22, we have excluded $1.9 million of antitrust legal fees and $1.2 million in additional impairment charges on our idle vessels. We do this to put the results on a comparable apples-to-apples basis with 2008. So with these adjustments, adjusted operating income fell 16.3% to $22.1 million for the third quarter, down from $26.4 million a year earlier.

The major components of the $4.3 million decline were the margin impact of the 5.7% volume decrease, and this had an $8.6 million impact partially offset by savings from our workforce reductions of $2.5 million.

Adjusted EBITDA, on page 23, totaled $36.9 million for the third quarter. This represents a decline of $5.3 million from the third quarter of 2008. Now the 12.6% decrease was due to the same factors impacting adjusted operating income that I just discussed.

Turning to page 34, our third-quarter adjusted net income totaled $11.4 million, a decline of $3.3 million from the same period a year ago. The net income decline was largely a result of the $4.3 million decrease in adjusted operating income. Interest expense also rose by about $500,000, reflecting the interest rate increase of 150 basis points on our bank debt under the amended credit agreement that we negotiated back in June.

I would also point out we presently are not reporting any GAAP federal income tax expense as a result of our tax valuation allowances that I explained in June.

Page 26 provides a segment breakdown of our 2009 third-quarter results, reflecting liner adjusted EBITDA of $38.9 million and logistics adjusted EBITDA of negative $2 million. Intercompany transactions have been eliminated as required.

Cash flow is presented on page 27 and continues to really remain a very good story for us. Adjusted free cash flow for the nine months totaled $23.1 million compared to $11.9 million a year ago. The $11.2 million improvement in adjusted free cash flow compares very favorably with the corresponding $20.8 million decline in adjusted EBITDA.

So how did we accomplish this? Capital spending was $18.2 million lower than a year ago as we aligned our capital needs this year with reduced business volumes. You might recall that last year, we spent about $15 million on cranes through September of 2008, and that compares to only $3.3 million in 2009.

The real story is working capital, which was $12.9 million better than a year ago. The working capital gain was driven largely by improvements 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 continue to focus intensely on both cash collections as well as broader working capital management initiatives, and these other initiatives have allowed us to capture $1.9 million in additional working capital improvements.

Turning to page 28, you can see at the end of the third quarter we continued to operate with adequate liquidity totaling $80 million, and we

are in compliance with our two credit facility financial covenants. Nearly 77% of our funded debt is fixed through maturity in 2012, and we have no refinancing needs until 2012. Finally, we enjoy a very low weighted average interest rate of 4.48%.

In addition, we ended the quarter with $29 million less in funded debt than a year ago. Our effective revolver availability was $75.6 million. That is based on the amount we could have borrowed without exceeding the senior secured leverage ratio threshold.

In comparison, total revolver availability was $81 million based on unconstrained borrowing capacity, the total amount available on the revolver.

In summary on page 29, we managed our business well in the third quarter, given the significant economic challenges. Adjusted EBITDA reached $36.9 million. Our margins held at 12%, unchanged from a year ago, despite the volume decline and rate pressures.

Adjusted free cash flow was very solid at $23.8 million for the quarter and $23.1 million for the nine months. And again, we made voluntary debt repayments of $10 million on our revolver in the third quarter and have paid $15 million for the nine-month period. We will also be making an additional $5 million voluntary payment this Monday.

Our rates were flat and we expect them to remain under pressure until the economy improves.

I will wrap up by reviewing our outlook for the fourth quarter. We think the worst could be behind us in terms the recession and corresponding volume declines, but we also expect economic recovery in our markets to be mild and protracted, in line with forecasts for the overall economy. So our fourth quarter will continue to be challenging. Full-year adjusted EBITDA will be below last year’s $130 million, but we do expect it to be above the levels that would threaten our financial covenants.

We continue to expect to deliver full-year adjusted free cash flow in the same general range as last year’s $60 million. And again, I would note this would be despite a decline in EBITDA that we are expecting this year.

In closing, we continue to be well positioned in this environment. We remain financially stable. We are proving to be somewhat more recession-resistant as our volumes have been less impacted than other transportation modes and our rates, although flat in the third quarter, have held up relatively well. And, we do have the operating leverage to quickly drive EBITDA growth in even a mild economic recovery.

	I will now turn the call back to the operator for Q&A.
George Pickral	Good morning, guys. I know it has only been two weeks, but in your sailing to Tampa, do you have any customers there yet or any kind of positive updates you can give us there?
John Keenan	George, this is John. We have had our second sailing through Tampa and the volumes are as we anticipated, and the important point is the volumes that we are seeing coming out of Tampa are new volumes for us. So we’re not compromising our Jacksonville sailing. We are acquiring some of the heavy freight that would have previously had to transit from the West Coast to Jacksonville, which is now better served by a local ship. So the volumes have been in line with what we expected and we expect to see it continue to grow.
George Pickral	Sounds great. John, along those lines, can you maybe talk about your volume trends overall throughout the quarter?
John Keenan	Sure, George. As I mentioned, we’ve seen the volume decline that we had seen in the first two quarters start to moderate. We are seeing, based on the upcoming holiday season and everything we hear from major retailers, they are trying to keep inventories tight. They expect a challenging sales environment, so we are not seeing any significant ramp up as you enter into the holiday volumes yet, but we do expect some in the coming weeks.
George Pickral	Okay, but that down 6, was it pretty consistently down 6 throughout the quarter?
John Keenan	Yes, that’s a good way to describe it.
George Pickral	Okay. Just one more quick question. Brian, in the logistics segment, can you maybe tell me what specific sectors are losing money or making money? And Chuck had mentioned something about steps you are taking to mitigate the losses. Can you maybe give a little color on that?
Brian Taylor	Let me just comment on the first part of your question, which segments are the most challenging for us. Clearly the expedited delivery segment has been a challenge for us throughout the year and has continued as a challenge in the third quarter. As I mentioned earlier in my remarks, what we have seen is a significant transition from customers looking for the fastest mode of service to a more cost-efficient delivery method. And as a result, we have actually seen a little bit of run off in that business in the third quarter.
	The things that we are doing to get the business turned around is to actually take resources away from the expedited segment. In fact, earlier

	this year, we had a restructuring to eliminate some of those resources and we have repositioned some of our people and our technology to places that are better able to support the businesses we see growing in the future. Clearly our LTL platform as well as our growing international business are businesses, we see as real growth drivers for us going forward.
George Pickral	Great. Thanks for the time and good quarter.
Chaz Jones	Good morning, everyone. Sorry if I missed this. Did you comment on what the impairment charge in the quarter was related to?
Mike Avara	Yes, an additional charge on some of our idle vessels, as we looked at reduced price to dispose and some additional costs.
Chaz Jones	Is that one-time or is that something you are going to be evaluating from time to time on a go-forward basis?
Mike Avara	No, I would hope that we have it captured at this point, Chaz.
Chaz Jones	And then on the antitrust legal expense, that seemed to come down quite a bit from what we saw in the first half of the year. Is that more of a go-forward number from here or has something changed in terms of how much you are having to pay out on the legal expense?
Mike Avara	We had a flurry of activity around the Puerto Rico settlement in June. So we incurred a lot of costs there. We’re also trying to aggressively maintain and constrain that cost to the extent we can.
Chaz Jones	So it sounds like that $4 million per quarter earlier in the first half of the year may trend down some moving forward?
Mike Avara	That’s our expectation. A lot of it obviously would be dependent on the level of activity that occurs around trying to resolve the broad antitrust matters. But we certainly think the run rate should be less.
Chaz Jones	Okay. G&A had a really good quarter here. Certainly I know you guys did a lot of cost reductions at the beginning of the year and maybe some of that is showing up now, but you are looking at $4 million plus range in terms of year-over-year and sequential improvement in G&A. Are those permanent cost reductions or was it just a really good quarter?
Mike Avara	What we really have done is put an increased focus on G&A costs across all the spectrum, vendor purchase, travel, entertainment, really trying to attack all the central levers. And we would hope that most of this will be sustainable as we take these costs out. We will certainly try and we will be successful in keeping the vast majority out as we go into 2010.

Chaz Jones	Okay, and then I wanted to shift over to pricing because that seems to be my main concern here with vessel utilization in the last three quarters, hovering around 60%, and with the expectation for a slow, gradual improvement in the economy.
	Can you give us any sense on pricing pressure coming down the pipe here?
John Keenan	This is John. Certainly we have experienced pricing pressure as the volumes in our various tradelanes have been reduced. As I said, third quarter, our rates were generally flat. Our market share has held very steady, but the pie as you know is getting smaller. Everybody is fighting to maintain their share. So fourth quarter, I would say we are probably going to be flat to down slightly on some of our rates as the economy continues to find its footing. But we expect the pressures to continue in the fourth quarter and hopefully moderate at the beginning of 2010.
	So we see rates as flat to up slightly for the year, but given the current expectations with a modest recovery, we’re going to continue to experience some pricing pressure for 2010.
Chaz Jones	Sure, and a follow-up to that and I am not sure if you can answer this or not. Does this at all, given the changes in the pricing environment, have any impact on your Puerto Rico settlement in terms of the piece on the base rate freeze for two years? I guess what I’m getting at is if pricing is starting to go negative, are people going to be willing to go to a two-year base rate freeze?
John Keenan	Right now, Chaz, we are not seeing any direct correlation. As you know, that settlement that we outlined in Puerto Rico has not yet been approved. But, we expect rates within the Puerto Rico market to remain under pressure until the economy starts to improve.
Chaz Jones	Okay, that’s all I had. Good job on the quarter, guys.
Operator	There are no further questions at this time. I will now turn today’s conference call over to Chuck Raymond.
Chuck Raymond	Okay, thank you, Ashley. Thanks, everyone for joining us today. Before I sign off, and our management team leaves the call, let’s summarize. We continue to demonstrate resilience in this very difficult economic environment. And while we expect challenges to continue into 2010, we really are well positioned both financially and operationally to ride this out. We’ve done the right things in terms of using our EDGE tools, focusing on the expenses we can control and capitalizing on these firming

	trends as they come along. So that’s a good picture for us.
	We appreciate your interest and look forward to talking with you again in January as we go over our full-year performance and talk to you about the new year’s business environment. Thank you.
Operator	This concludes today’s Horizon Lines third-quarter earnings release conference call. You may now disconnect.

EX-99.3

Exhibit 99.3

October 23, 2009 Horizon Lines, Inc. Third 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 & Use of Non-GAAP Measures Risks, Uncertainties, Other Factors with Respect to "Forward-Looking Statements": The information contained in this presentation should be read in conjunction with our filings made with the Securities and Exchange Commission. This presentation 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 presentation 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. 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 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. - -3-

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

Performed well in a very challenging environment Volume declines abated and remained less severe than larger transport sector Margins were stable, benefiting from cost-containment efforts Cash flow was relatively strong Schedule integrity remained high despite challenging weather However, revenue per container, net of fuel, came under increased pressure Completed the quarter with Stable financial position Adequate liquidity (CHART) Third-Quarter Highlights - -5-

Fourth Quarter Outlook Economic turbulence continues Fourth quarter remains challenging due to stagnant tradelane economies Tradelane economies appear to be bottoming, but process is slow and recovery expected to be sluggish and uneven American Recovery and Reinvestment Act providing some stimulus in Puerto Rico Horizon Lines remains well positioned Recession resistant - serving the basic needs of our tradelanes Aligned with the right customers and focused on service excellence Aggressively pursuing additional cost containment initiatives and select revenue growth opportunities Liquidity, debt structure and credit facility compliance remain adequate to withstand stagnant or slow-growth economy - -6-

Third Quarter 2009 Earnings Release John Keenan President and Chief Operating Officer Horizon Lines, LLC Liner Review - -7-

2009 Full-Year Forecast* October July April January Average Oil Price $60/bbl $60/bbl $53/bbl $51/bbl Unemployment Rate(1) 8.4%(1) 8.2% 7.9% 7.8% Economy relatively stable compared to lower 48, but outlook is cautious Flat economy seen extending through 2010 Retail and wholesale jobs declining Weak tourism continues No new retail construction in Anchorage expected in 2010 Permanent Fund Dividend of $1,305 compared with $2,069 last year(2) Horizon Lines remains well aligned with appropriate customers "Big Box" retailers faring better than other retail segments in current recession Volume decline partially offset by mix, rate and expense controls Alaska Economic Update - -8- * Energy Information Administration Unemployment is actual rate for month indicated, except October, in which case rate is for the latest month available - September 2008 Permanent Fund Dividend was accompanied by a one-time special energy dividend of $1,200; total payout was $3,269 per resident

Hawaii/Guam Economic Update HAWAII 2009 Full-Year Forecast* October July April January GSP (1.1)% (1.6)% (0.2)% (0.0)% Visitor Arrivals (4.4)% (6.8)% (5.2)% (5.7)% Real Personal Income (1.1)% (2.7)% (2.5)% (0.7)% Unemployment Rate(1) 7.2%(1) 7.0% 6.9% 6.1% Economic decline appears to be moderating, but bottoming process continues Visitor numbers stabilizing, but tourist spending expected to fall12% this year due to widespread discounting September unemployment rate of 7.2% hovering at levels not seen in 30 years Horizon Lines focused on partnering with strong customers, and on aggressive cost controls GUAM Launch of massive infrastructure rebuilding now expected to begin around 4th quarter of 2010 to accommodate military relocation from Okinawa *University of Hawaii Economic Research Organization, Hawaii Department of Business, Economic Development & Tourism - -9- (1) Unemployment is actual rate for month indicated, except October, in which case rate is for the latest month available - September

Puerto Rico Economic Update Forecast* FY 2009 - 2010 FY 2008-2009 GNP 0.7% (5.5)% Unemployment Rate 17.0%(1) 13.4% Economy seen in bottoming phase with projections for modest growth in FY2010 Unemployment at 16.7% in September; Bankruptcies up 29% from a year ago Swift action by Fortuno Administration to reduce $3.2 billion budget deficit and cultivate economic growth Economy stimulus package totaling $6.1 billion expected to fund local capital improvements and economic development plans Federal stimulus money already flowing into economy Customer relationships remain strong Successful reefer contract renewals Continued focusing on cost containment and schedule integrity *Fiscal year is July-June. Puerto Rico Planning Board; Government Development Bank; News reports. - -10- (1) Unemployment rate expected to peak at 17% after November public worker layoffs.

American Recovery and Reinvestment Act having slow impact Positive impact commencing in Puerto Rico, but not yet benefiting Hawaii or Alaska Opportunities expected to accelerate in 2010 as consumers benefit more from stimulus Estimated Funding Puerto Rico - $ 6.1 billion Alaska - $1.0 billion Hawaii - $936 million Guam - $178 million Economic Stimulus - -11-

Volume Update - Third Quarter - -12- 5.7% Third-quarter 5.7% volume decline moderated from previous three quarters, possibly reflecting bottoming economy Tradelane economies remained weak Volume declines improved in all three tradelanes

Unit Revenue Update - Third Quarter Total unit revenue declined across all tradelanes, due to lower fuel surcharges Revenue per container, net of fuel, was flat, as rate pressures increased on continued volume softness Partially offset rate pressures and above-normal automobile volumes by continued focus on higher-value cargo mix 7.5% Net of Fuel 0.1% Total - -13- $4,126 (CHART) Unit Revenue Per Container

Vessel Performance - third Quarter 2.0% 5.0% 0.1% Vessel availability and on-time arrivals remained strong, despite weather challenges Vessel utilization decline reflects softer market volumes Ranked #1 in Drewry second-quarter worldwide ocean carrier schedule integrity survey of 1,700 vessels - -14-

Cost Containment and Revenue Enhancement Initiatives Continue - -15- Remain intensely focused on driving costs out of the business while pursuing select revenue growth opportunities Added Tampa call to Houston-San Juan service Aggressively pursuing fuel cost efficiencies Experiencing continued success with reduction of vessel crew overtime Working with both vessel maintenance and landside suppliers to reduce costs Targeting offshore equipment maintenance productivity and expenses Company well positioned for long-term efficiencies when economy rebounds Vessel network leverage Terminal infrastructure and process improvements

Third Quarter 2009 Earnings Release Brian Taylor President and Chief Operating Officer Horizon Logistics, LLC Logistics Review - -16-

Logistics Third Quarter Results & Strategy Third-quarter performance continued to be adversely impacted by economic recession and significant reductions in import volume Overcapacity in the domestic trucking sector is a drag on revenue and margins in the brokerage sector While current growth is slow, a long-term position in Logistics remains a key strategic initiative Maintained strategy of expanding the business through organic growth in targeted areas Narrowed focus and realigned sales force to areas that offer greatest growth opportunity Operational investments in domestic Less-Than-Truckload (LTL) and Non-Vessel Operating Common Carrier (NVOCC) - -17- Overview

Logistics Lines of Business - Review - -18- Freight Brokerage Positive growth trend in cross border Mexico shipments continues Domestic LTL initiative becoming integrated into the Horizon customer base Non-Vessel Operating Common Carrier International volumes grow with our Liner customers Rate compression has a big impact on total revenue and margin Weak US dollar is fueling export volume growth Drayage & Warehousing New retail start-up programs expected to benefit future drayage volume, but growth is slower than expected New Los Angeles warehouse venture completed and operational Import and Export consolidation programs expanding in high-tech and retail sectors Expedited Service Challenged as customers trade down the service spectrum in recessionary environment High-tech and alternative energy verticals continue to show promise

Third Quarter 2009 Earnings Release Mike Avara Senior Vice President & Chief Financial Officer Horizon Lines, Inc. Financial Review - -19-

Operating Revenue Operating Revenue - -20- ($ in Millions) 12.6% 13.2% (CHART)

Operating Revenue Change Operating Revenue Change - -21- ($ in Millions)

Adjusted Operating Income (1) Adjusted Operating Income (1) - -22- ($ in Millions) 16.3% 30.6% (1) See reconciliation of Operating Income to Adjusted Operating Income on page 35. (CHART)

Adjusted EBITDA (1) - -23- (1)See reconciliation of Net Income (Loss) to Adjusted EBITDA on page 38. ($ in Millions) (CHART) 12.6% 19.7% (CHART)

(CHART) Adjusted Net Income (1,2) - -24- ($ in Millions) 22.5% 54.8% (1) See reconciliation of Net Income (Loss) to Adjusted Net Income on page 36. (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 41. (CHART)

(CHART) (CHART) Adjusted Diluted EPS (1,2) - -25- ($) 55.1% 22.9% (1) See reconciliation of Net Income (Loss) Per Diluted Share to Adjusted Net Income Per Diluted Share on page 37. (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 41.

Segment Results (1) Liner Logistics Consolidated Revenue $ 300.6 $ 7.4 $ 308.0 Adjusted EBITDA $ 38.9 $ (2.0) $ 36.9 ($ in Millions) 2009 Third Quarter Liner Logistics Consolidated Revenue $ 835.0 $ 23.8 $ 858.8 Adjusted EBITDA $ 91.1 $ (6.5) $ 84.6 2009 Nine Months - -26- (1) Intercompany transactions have been eliminated

Free Cash Flow - Nine Months - -27- ($ in Millions)

Liquidity, Credit Facility Compliance & Debt Structure ($ in Millions) Corporate Liquidity Cash Balance $ 4.4 Effective Revolver Availability 75.6 Total Liquidity $ 80.0 Credit Facility Compliance Q3 LTM 2009 Covenant Interest Coverage Ratio 4.01 >3.50 Senior Secured Leverage Ratio 2.30 <3.00 *weighted average (1) Maturity will accelerate to February 15, 2012, if convertible notes are not refinanced by that date - -28- September 20, 2009

Performed well despite economic challenges that continued to pressure volumes Margins holding up well from year ago, despite volume and rate pressures - - Adjusted EBITDA margin at 12%, unchanged from a year ago Cash flow remains strong Made voluntary debt payments of $10 million in third quarter, and $15 million for nine months Debt payments continue despite Puerto Rico class-action settlement payment of $5 million and corresponding credit agreement amendment cost of $3.5 million Summary - -29-

Fourth quarter will be challenging Tradelane economies appear close to - or at - bottom, but economic recovery expected to be slow, muted and uneven Horizon Lines remains well positioned Intensely focused on cost controls and selective growth opportunities Recession resistant - serve the basic needs of our tradelanes Operating leverage is significant even in a mild recovery Operating from a stable financial platform Adjusted 2009 EBITDA will be below year ago $130 million, but remain above levels that would threaten financial covenants Adjusted 2009 Cash flow expected to approximate last year's $59.9 million Adequate liquidity to withstand ongoing recession Relative low combined interest rate of 4.48% No recapitalization needs until 2012 Financial Outlook - -30-

third Quarter 2009 Earnings Release Questions & Answers - -31-

Financial Appendix - -32-

Income Statement Summary - Third Quarter Income Statement Summary - Third Quarter 2008 results are adjusted for retrospective application of changes in accounting. See page 41 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 35, 36, 37, and 38. ($ in Millions, Except per Share Amounts) - -33-

Income Statement Summary - Nine Months Income Statement Summary - Nine Months 2008 results are adjusted for retrospective application of changes in accounting. See page 41 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 35, 36, 37, and 38. ($ in Millions, Except per Share Amounts) - -34-

Adjusted Operating Income Results Adjusted Operating Income Results - -35- ($ in Millions)

Adjusted Net Income Results Adjusted Net Income Results - -36- ($ 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 41.

Adjusted Net Income Per Diluted Share Adjusted Net Income Per Diluted Share - -37- ($) (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 41.

Net Income (Loss) / Adjusted EBITDA Reconciliation Net Income (Loss) / Adjusted EBITDA Reconciliation - -38- ($ 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 41.

Operating Income (Loss )to Adjusted EBITDA Segment Reconciliation - -39- - -39- ($ in Millions)

Operating Income (Loss) to Adjusted EBITDA Segment Reconciliation - -40- - -40- ($ 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 36 and 37. 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) - -41-

EX-99.4

Exhibit 99.4

PRESS RELEASE

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

HORIZON LINES, INC. DECLARES REGULAR DIVIDEND

CHARLOTTE, NC, October 22, 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 December 15, 2009, to stockholders of record on December 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, one of which is classified as held for sale, 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.

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