TBS International plc (NASDAQ: TBSI) announced today its financial
and operating results for the second quarter and six months ended
June 30, 2011.
Second Quarter and Six Months 2011 Highlights:
---------- ---------- ---------- ----------
Metric Q2 2011 Q2 2010 6M 2011 6M 2010
---------- ---------- ---------- ----------
Revenue (thousands) $ 97,134 $ 111,240 $ 186,961 $ 211,309
Net loss attributable to
TBS International plc
(thousands) $ (14,441) $ (9,677) $ (31,108) $ (17,520)
Net loss per ordinary
share (basic and
diluted) $ (0.48) $ (0.32) $ (1.02) $ (0.59)
Weighted average
ordinary shares
outstanding (basic and
diluted) 30,451,341 29,973,420 30,433,962 29,930,634
EBITDA (thousands) (1) $ 13,409 $ 22,232 $ 24,750 $ 45,478
Drydock days 83 110 270 183
----------- ----------- ----------- -----------
Freight Voyages Q2 2011 Q2 2010 6M 2011 6M 2010
----------- ----------- ----------- -----------
Average daily voyage TCE $ 11,156 $ 14,463 $ 11,155 $ 14,491
Freight voyage days 2,890 2,556 5,649 5,360
Revenue tons carried for
all cargoes (thousands) 3,048 2,374 5,884 5,048
Average freight rate for
all cargoes $ 24.89 $ 29.76 $ 24.70 $ 28.72
Average freight rate for
other than aggregate
cargoes $ 48.88 $ 56.46 $ 49.30 $ 54.54
Time Charter Out Voyages
Average daily time
charter TCE $ 11,721 $ 18,532 $ 11,875 $ 17,587
Time charter days 1,691 1,838 3,181 3,175
(1) EBITDA is a non-GAAP financial measure. Please refer to "Non-GAAP
Reconciliations-EBITDA" following the financial statements included in this
press release for a reconciliation of EBITDA to Net Loss.
Management Commentary:
Joseph E. Royce, Chairman, Chief Executive Officer and President
stated: "TBS' financial results for the second quarter and first
six months of 2011 were negatively affected by three major
macroeconomic factors:
- continued deliveries of new build vessels in all drybulk
categories, which is increasing capacity as it outpaces scrapping
of tonnage;
- downward pressure on dry cargo freight rates; and
- the high cost of transportation fuel, which we have not been
able to pass on to our customers because of the downward pressure
on freight rates.
"So far in the third quarter of 2011, we see the same
macroeconomic factors continuing:
- deliveries of additional new build dry cargo vessels;
- continuing downward pressure on dry cargo freight rates, with
the Baltic Dry Index (or "BDI") at 1,264 on August 8, 2011,
compared to 1,348 on May 9, 2011. Correspondingly, the Baltic
Handysize Index (or "BHSI") was 657 on August 8, 2011, compared to
789 on May 9, 2011; and
- although the quoted price for a barrel of oil has come down in
the past two weeks, the reduction in the price of bunkers has been
at a much slower rate.
"Reflecting the continuous downturn in the BDI and the lack of
improvement in the TBS operating results, we are in discussions
with our lenders about our liquidity requirements. We have retained
the services of Lazard Freres to assist TBS in this process and to
address the liquidity requirements of the Company."
Ferdinand V. Lepere, Senior Executive Vice President and Chief
Financial Officer, commented: "TBS' results for the second quarter
2011 reflect the continuing downward pressure on dry cargo freight
and charter rates. During the second quarter, revenues decreased by
12.7%, compared to the same period in 2010, primarily due to a
40.5% decrease in charter hire rates.
"As at June 30, 2011, we were in compliance with all amended
financial covenants relating to our bank debt. During the second
quarter, we modified these agreements to reduce the minimum
consolidated interest charge coverage ratio for the quarter ended
June 30, 2011 and for the quarters ending through December 31, 2011
from 3.35 to 1.00 to 2.50 to 1.00. In addition, the modifications
increased the maximum consolidated leverage ratio for the same
periods from 4.00 to 1.00 to 5.10 to 1.00 and reduced the minimum
cash requirement from $15.0 million to $10.0 million. Beginning in
2012, the financial covenant requirements revert back to the levels
set in our January 2011 credit agreement amendments.
"TBS will need to raise additional funds to facilitate principal
repayments due September 30, 2011, and to remain in compliance with
the minimum cash liquidity covenant. Absent the ability to raise
additional capital and a significant near-term improvement in
freight and charter rates, we will need to enter into further
modifications or waivers to the financial covenants. Our inability
to meet any of the covenants, or to obtain waivers of such future
covenant violations, continues to raise substantial doubt about the
TBS's ability to continue as a going concern. As a result, in
compliance with US GAAP, we have classified the entire amount of
debt outstanding as a current liability in the consolidated balance
sheet at June 30, 2011.
"At the end of the second quarter 2011, our net debt to
capitalization ratio was 55%, and our cash balance was
approximately $13.1 million. During the first half of 2011, we made
$10.9 million of scheduled debt principal payments, and received
proceeds of $10.8 million from offerings of our preference
shares.
"In May 2011, we took delivery of the M/V Maya Princess, the
final delivery in the series of six 'Roymar Class' 34,000 dwt
multipurpose tweendecker vessels, and successfully concluded phase
one of our newbuilding program, which we initiated in March 2007.
The addition of these six multipurpose retractable tweendecker
vessels to our fleet is a significant milestone in the execution of
our business plan to modernize and expand our fleet.
"During the second quarter 2011, we continued our drydocking
program and drydocked five vessels, including two vessels which
entered into drydock during the first quarter of 2011, for a total
of 83 days."
Second Quarter 2011 Results: For the
second quarter ended June 30, 2011, total revenues were $97.1
million, a decrease of $14.1 million, or 12.7%, compared to $111.2
million for the same period in 2010. Net loss for the second
quarter 2011 was $14.4 million, after loss attributable to
non-controlling interests, which is an increase of $4.7 million
compared to $9.7 million loss for the same period in 2010. Loss per
share on a basic and diluted basis were $0.48 in the second quarter
of 2011, calculated based on 30,451,341 shares, compared to a loss
of $0.32 for the second quarter of 2010, calculated based on
29,973,420 shares.
EBITDA, which is a non-GAAP measure, decreased to $13.4 million
for the quarter ended June 30, 2011 from $22.2 million in 2010.
Please see "Non-GAAP Reconciliations - EBITDA" following the
financial statements in this press release for a reconciliation of
EBITDA to net loss.
Revenues: Total revenues for the second
quarter of 2011 were $97.1 million and include voyage revenues of
$75.9 million, time charter revenues of $20.6 million and logistics
and other revenues of $0.6 million.
An average of 50 vessels (excluding off-hire) were operated
during the second quarter 2011 compared to 48 vessels (excluding
off-hire) during the same period in 2010.
Voyage Revenues: Voyage revenues for the
quarter ended June 30, 2011 were $75.9 million, an increase of $5.3
million or 7.5% from $70.6 million for the same period in 2010.
Total cargo volume (including aggregates) increased 674,000 tons
or 28.4% to 3,048,000 tons for the quarter ended June 30, 2011,
from 2,374,000 tons for the same period in 2010. This increase is
mainly attributable to the increase in aggregates, bulk cargo and
fertilizers transported during the three months ended June 30,
2011. Non-aggregate revenue tons carried increased by 213,000 tons
for second quarter 2011 whereas aggregate revenue tons carried
increased by 461,000 tons for second quarter 2011 as compared to
second quarter 2010.
Average freight rates for all cargoes decreased $4.87 per ton,
or 16.4%, to $24.89 per ton for the three months ended June 30,
2011, as compared to $29.76 per ton in 2010. Average freight rates
for aggregate cargoes increased $0.01 per ton, or 0.1%, to $6.78
per ton for the three months ended June 30, 2011, as compared to
$6.77 per ton in 2010. Average freight rates for non-aggregate
cargoes decreased $7.58 per ton, or 13.4%, to $48.88 per ton for
second quarter 2011, as compared to $56.46 per ton in second
quarter 2010.
Average Daily Voyage Time Charter Equivalent, which is an
industry standard metric reflecting the daily net earnings of a
voyage after deducting all voyage expenses from voyage revenues,
was $11,156 per day for the second quarter of 2011, a decrease of
22.9% from $14,463 per day during the second quarter of 2010.
Time Charter Revenues: Time charter
revenues decreased by $17.0 million, or 45.2%, to $20.6 million for
the quarter ended June 30, 2011 from $37.6 million for the quarter
ended June 30, 2010. The decrease was primarily due to lower
average charter hire rates, which decreased $8,293 per day to
$12,196 for the three months ended June 30, 2011 from $20,489 in
2010.
Average Daily Time Charter Equivalent, which is an industry
standard metric reflecting time charter-out revenues during the
period reduced by commissions, was $11,721 per day for the second
quarter of 2011, a decrease of $6,811 from $18,532 per day during
the same period in 2010.
Expenses: Total operating expenses for the
quarter ended June 30, 2011 decreased by $10.8 million or 9.3% to
$104.8 million from $115.6 million for the same period in 2010.
Voyage expenses, which include fuel costs, commissions, port
call charges, stevedoring and other cargo-related expense increased
by $5.3 million or 14.3% to $42.6 million for the quarter ended
June 30, 2011. The rise was primarily due to an increase in fuel
expense, port call expense, and stevedore and other cargo-related
expense, offset partly by a decrease in commission and
miscellaneous voyage expense.
Vessel expenses, which consist of operating expenses relating to
owned and controlled vessels, such as crewing, stores, repairs and
maintenance, insurance and charter hire fees for vessels that are
chartered-in, decreased by $0.2 million, or 0.7%, to $31.4 million
for the second quarter 2011 as compared to the second quarter of
2010. Owned vessel expense for the three months ended June 30, 2011
were $25.4 million, a decrease of $3.3 million, or 11.6%, versus
2010. The decrease in vessel operating expense was principally due
to cost cutting measures. The average operating expense day rate
for the 52 non-Brazilian flagged vessels in the fleet of $4,874 per
day for the three months ending June 30, 2011 compared to $5,830
per day in 2010.
Depreciation and amortization for three months ended June 30,
2011 decreased by $5.6 million, or 21.8%, to $20.1 million compared
to $25.7 million for three months ended June 30, 2011. The decrease
was due to lower vessel depreciable values resulting from a $201.7
million impairment charge recorded at December 31, 2010.
General and administrative expenses for the three months ended
June 30, 2011 decreased by $3.7 million or 26.1% to $10.4 million,
primarily due lower compensation costs. Compensation costs for the
three months ended June 30, 2010 included stock based compensation
costs of $3.3 million for shares awarded as a noncash bonus to
employees. No similar share grant was made in 2011.
Interest expense increased by $1.5 million, or 24.2%, to $7.7
million for the three months ended June 30, 2011 from $6.2 million
for the same period in 2010. The increase was due to the inclusion
of interest on borrowings related to three new ships that was
previously capitalized while the ships were under construction.
Results for the Six Months ended June 30,
2011: For the six months ended June 30, 2011, total revenues
were $187.0 million, a decrease of 11.5% compared to the $211.3
million for the same period 2010. Net loss for the six months 2011
was $31.1 million, after loss attributable to the non-controlling
interests, an increase of 77.7% compared to $17.5 million loss for
the same period 2010. Loss per share on a basic and diluted basis
were $1.02 for the six months ended June 30, 2011, calculated based
on 30,433,962 shares, compared to a loss of $0.59 for the same
period of 2010, calculated based on 29,930,634 shares.
EBITDA, which is a non-GAAP measure, decreased to $24.7 million
for the six months ended June 30, 2011 from $45.5 million in 2010.
Please see "Non-GAAP Reconciliations - EBITDA" following the
financial statements included in this press release for a
reconciliation of EBITDA to net loss.
An average of 49 vessels (excluding off-hire) were operated
during the six months 2011 compared to 47 vessels (excluding
off-hire) during the same period of 2010.
Total revenues of $187.0 million for the six months 2011 include
voyage revenues of $145.3 million, time charter revenues of $39.8
million and logistic and other revenues of $1.9 million.
Financial Covenant Modification: As
previously announced, on April 18, 2011, the Company and its
various lender groups agreed to modify certain financial covenants
through December 31, 2011. Pursuant to these modifications, the
minimum consolidated interest charges coverage ratio has been
reduced for the fiscal quarters ending June 30, 2011 through
December 31, 2011 from 3.35 to 1.00 to 2.50 to 1.00. In addition,
the modifications increased the maximum consolidated leverage ratio
for the same periods from 4.00 to 1.00 to 5.10 to 1.00, and reduced
the minimum cash requirement from $15 million to $10 million for
the period July 1, 2011 to December 31, 2011. After December 31,
2011, financial covenant requirements will revert back to the
levels set in the January 28, 2011 credit agreement amendments.
Rights Offering: In May 2011, we conducted
a rights offering, which entitled holders of the Company's Class A
and Class B ordinary shares to one non-transferable subscription
right to purchase the Company's Series A Preference Shares for each
ordinary share held on the record date for the rights offering. As
an integral component of the rights offering, certain shareholders
who also are members of management were to act as standby
purchasers and purchase up to 70,000 Series A Preference Shares.
The Series A Preference Shares are identical to the Series B
Preference Shares described above, except that the Series A
Preference Shares are convertible only into Series A ordinary
shares at an initial conversion rate of 50 Class A ordinary shares
per Series A Preference Share and the Series B Preference Shares
are convertible only into Class B ordinary shares at an initial
conversion rate of 25 Class B ordinary shares per Series B
Preference Share.
On May 31, 2011, the rights offering concluded and, upon
exercise of 826,000 subscription rights, TBS issued 8,260 Series A
Preference Shares for aggregate consideration of $0.8 million. In
addition, the Management Shareholders purchased 70,000 Series A
preference Shares for aggregate consideration of $7.0 million.
During the first half of 2011, TBS received aggregate proceeds
of $10.8 million from the offerings of Series A and B preference
Shares.
Fleet Expansion and Newbuilding Program:
TBS successfully concluded phase one of its newbuilding program in
the second quarter of 2011 when it took delivery of the last of six
newbuilt Roymar Class multipurpose vessels with retractable
tweendecks. During 2011, three of those vessels, the Omaha Belle,
Comanche Maiden and the Maya Princess were delivered in January,
February and May, respectively.
Each of these vessels has box-shaped holds, open hatches and
fully retractable hydraulic tweendecks and is geared with 35-and
40-ton cranes combinable up to 80 tons. Each of these vessels also
has a modern fuel-efficient engine enabling the vessel to operate
effectively at 15 knots.
With the delivery of these vessels, TBS' current fleet expanded
to 52 vessels with an aggregate of 1.6 million dwt tons, consisting
of 30 tweendeckers and 22 handysize/handymax bulk carriers.
While TBS remains committed to expanding its fleet, pending a
significant change in global economic conditions, the Company has
temporarily suspended any further acquisitions of secondhand
vessels.
TBS 2011 Drydock Program and Vessel Upgrade
Program: For 2011, TBS' plan is to drydock 17 vessels,
including one vessel that entered into drydocking during the fourth
quarter of 2010, for approximately 573 drydocking days with a steel
renewal of about 1,522 metric tons at a total cost of approximately
$18.1 million.
Our anticipated 2011 drydocking schedule is as follows:
- During the first quarter 2011, one vessel that entered into
drydock during the fourth quarter of 2010 continued its drydock for
89 days into the first quarter of 2011, and four additional vessels
entered into drydock for 98 days. These vessels required about 328
metric tons of steel.
- During the second quarter 2011, two vessels that entered into
drydock during the first quarter of 2011 continued its drydock for
38 days into the second quarter of 2011, and three additional
vessels entered into drydock for 45 days. These vessels required
about 169 metric tons of steel.
- In the third quarter 2011, TBS plans to drydock six vessels,
including two vessels that entered into drydock in the second
quarter, for about 175 days requiring about 555 metric tons of
steel
- In the fourth quarter 2011, TBS plans to drydock five vessels,
requiring about 470 metric tons of steel and about 128 drydock
days.
Conference call and webcast: Tomorrow,
August 9, 2011 at 8:30 a.m. EDT, the Company's management will host
a conference call to discuss the results.
Conference call details: Participants
should dial into the call 10 minutes before the scheduled time
using the following numbers: 1-888-680-0894 (from the US) or
1-617-213-4860 (International Dial In). Participant Passcode:
66535312. Participants may pre-register for the call at
https://www.theconferencingservice.com/prereg/key.process?key=PQKDM4DDP.
Pre-registrants will be issued a PIN number to use when dialing
into the live call which will provide quick access to the
conference by bypassing the operator upon connection.
Webcast There will also be a live -- and
then archived -- slides and audio webcast of the conference call on
the company's website www.tbsship.com, which can be accessed by
clicking on the webcast link. As soon as practicable, the webcast
and the corresponding slides will be archived and will also be
accessible on our website.
Replay A telephonic replay of the
conference call will be available from 11:30 a.m. EDT on Tuesday,
August 9, 2011 until Tuesday, August 16, 2011 by dialing
1-888-286-8010 (from the US) or 1-617-801-6888 (International Dial
In). Access Code: 22115377. A replay of the webcast will be
available soon after the completion of the call.
Consolidated Statements of Operations
(In thousands, except per share data and outstanding shares)
Three Months Ended Six months ended
June 30, June 30,
------------------------ ------------------------
2011 2010 2011 2010
----------- ----------- ----------- -----------
Revenue
Voyage revenue $ 75,857 $ 70,640 $ 145,315 $ 144,998
Time charter revenue 20,624 37,658 39,795 60,561
Logistics Revenue (1) 344 2,931 558 5,583
Other revenue 309 11 1,293 167
----------- ----------- ----------- -----------
Total Revenue 97,134 111,240 186,961 211,309
----------- ----------- ----------- -----------
Operating expenses
Voyage 42,609 37,268 81,076 72,048
Logistics (1) 203 1,748 196 3,625
Vessel 31,447 31,668 63,131 59,439
Depreciation and
amortization of
vessels and other
fixed assets 20,153 25,733 39,436 51,230
General and
administrative 10,367 14,030 20,083 26,403
Net loss on vessel
held for sale - 5,154 - 5,154
----------- ----------- ----------- -----------
Total Operating
expenses 104,779 115,601 203,922 217,899
----------- ----------- ----------- -----------
Loss from operations (7,645) (4,361) (16,961) (6,590)
Other (expenses) and
income
Interest expense,
net (7,697) (6,172) (15,319) (11,568)
Loss on
extinguishment of
debt (2) 0 0 (1,103) (200)
Other income expense 188 42 265 24
----------- ----------- ----------- -----------
Total other expenses (7,509) (6,130) (16,157) (11,744)
----------- ----------- ----------- -----------
Net loss (15,154) (10,491) (33,118) (18,334)
=========== =========== =========== ===========
Less: Net loss
attributable to
noncontrolling interest
(3) (713) (814) (2,010) (814)
----------- ----------- ----------- -----------
Net loss attributable to
TBS International plc $ (14,441) $ (9,677) $ (31,108) $ (17,520)
=========== =========== =========== ===========
Net loss per ordinary
share:
Basic and Diluted $ (0.48) $ (0.32) $ (1.02) $ (0.59)
Weighted average
ordinary shares
outstanding
Basic and Diluted 30,451,341 29,973,420 30,433,962 29,930,634
Operating Data for the Three and Six Months Ended June 30, 2011 and 2010
Three Months Ended Six months ended
June 30, June 30,
--------------------------------------
2011 2010 2011 2010
-------- -------- -------- --------
Other Operating Data:
Controlled vessels (at end of
period) (4) 52 49 52 49
Chartered vessels (at end of period)
(5) 4 4 4 4
Freight voyage days (6) 2,890 2,556 5,649 5,360
Vessel days (7) 5,069 4,659 9,906 8,984
Revenue tons carried for all cargoes
(8) 3,048 2,374 5,884 5,048
Freight rates for all cargoes (9) $ 24.89 $ 29.76 $ 24.70 $ 28.72
Revenue tons carried other than
aggregate cargoes (8) (10) 1,311 1,098 2,500 2,337
Freight rates for other than
aggregate cargoes (9) (10) $ 48.88 $ 56.46 $ 49.30 $ 54.54
Time Charter days 1,691 1,838 3,181 3,175
Daily charter hire rates $ 12,196 $ 20,489 $ 12,510 $ 19,074
TCE per day-Freight Voyages (11) $ 11,156 $ 14,463 $ 11,155 $ 14,491
TCE per day-Time Charter-Out (12) $ 11,721 $ 18,532 $ 11,875 $ 17,587
(1) TBS Logistics represents revenue and related costs for cargo and
transportation management services.
(2) The loss on extinguishment of debt in 2011 and 2010 represents the
write-off of unamortized deferred finance costs for the Bank of America
Revolving Credit Facility in connection with the January 2011
restructuring and March 2010 loan amendments and waivers to our credit
facilities.
(3) Represents a 30% non controlling interest held by Log-In Logistica
Intermodal S.A.
(4) Controlled vessels are vessels that are owned or chartered-in with an
option to purchase. As of June 30, 2011, two vessels in the controlled
fleet were chartered-in with an option to purchase.
(5) Represents vessels that were both chartered-in under short-term
charters (less than one year at the start of the charter) and chartered
in under long-term charters without an option to purchase. Charter
vessel includes three Brazilian flagged vessels chartered-in under a
bareboat charter through our joint venture Log.Star Navegacao S.A.
(6) Represents the number of days controlled and time-chartered vessels
were operated by the Company performing freight voyages. Freight voyage
days exclude both off-hire days and time chartered out days.
(7) Represents the number of days that we operated our controlled and time-
chartered vessels. Vessel expense relating to controlled vessels is
based on a 365-day year. Vessel expense relating to chartered-in
vessels is based on the actual number of days the vessel is operated,
excluding off-hire days.
(8) In thousands.
(9) Freight rates are a measurement on which shipments are freighted.
Cargoes are rated as weight (based on metric tons) or measure (based on
cubic meters), whichever produces the higher revenue will be considered
the revenue ton.
(10) Aggregates represent high-volume, low-freighted cargo, which can
overstate the amount of tons that are carried on a regular basis and
accordingly reduces the revenue per ton. TBS believes that the
exclusion of aggregates better reflects their cargo shipping and
revenue per ton data for their principal services.
(11) Daily Time Charter Equivalent or "TCE" rates are defined as voyage
revenue less voyage expenses during the period divided by the number of
available freight voyage days during the period. Voyage expenses
include: fuel, port call, commissions, stevedore and other cargo
related and miscellaneous voyage expenses. No deduction is made for
vessel or general and administrative expenses. TCE includes the full
amount of any probable losses on voyages at the time such losses can be
estimated. TCE is a standard industry metric for measuring and
analyzing fluctuations between financial periods and as a method of
equating TCE revenue generated from a voyage charter to time charter
revenue.
(12) Daily Time Charter Equivalent or "TCE" rates for vessels that are time
chartered-out are defined as time charter revenue during the period
reduced principally by commissions and certain voyage costs (for which
we are responsible under some time charters) divided by the number of
available time charter days during the period.Voyage costs incurred
under some time charters were $0.1 million and $1.8 million and $0.4
million and $1.8 million for the three and six months ended June 30,
2011 and 2010, respectively. Voyage costs in 2010 relate to port costs
incurred in connection with the time charter out of vessels in the
Brazilian coastal trade.No deduction is made for vessel or general and
administrative expenses.Commission for vessels that were time chartered
out for the three and six months ended June 30, 2011 and 2010 were $0.7
million and $1.6 million and $1.6 million and $2.7 million,
respectively.
Balance Sheet Data
Please find below TBS' selected balance sheet data:
June 30, December 31,
2011 2010
------------- -------------
Balance Sheet Data (In thousands):
Cash and cash equivalents $ 13,053 $ 18,976
Restricted cash - 6,737
Working capital (deficit) (317,816) (299,616)
Total assets 662,841 686,321
Total debt 336,385 332,259
Total shareholders' equity 268,438 296,874
Non-GAAP Reconciliations
We use EBITDA as a liquidity measure. The following schedule reconciles
EBITDA and Adjusted EBITDA to Net Cash Provided by Operating Activities
for the three and six months ended June 30, 2011 and 2010 (in thousands):
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2011 2010 2011 2010
-------- -------- -------- --------
Net loss $(15,154) $(10,491) $(33,118) $(18,334)
Net loss attributable to
noncontrolling interest 713 814 2,010 814
Interest expense and extinguishment
losses 7,697 6,176 16,422 11,768
Depreciation and amortization 20,153 25,733 39,436 51,230
-------- -------- -------- --------
EBITDA 13,409 22,232 24,750 45,478
Stock based compensation 605 1,859 1,496 4,498
Loss on vessel held for sale 5,154 5,154
-------- -------- -------- --------
Adjusted EBITDA 14,014 29,245 26,246 55,130
Net changes in operating assets and
liabilities (3,024) 9,151 147 1,144
Drydocking expenses (3,719) (3,657) (6,553) (6,120)
Net interest expense, exclusive of
amortization of financing costs,
non cash changes in value of swap
contracts and non cash interest (5,918) (4,566) (12,346) (9,188)
Income from nonconsolidated joint
ventures - (56) - (56)
Net loss attributable to
noncontrolling interest (713) (814) (2,010) (814)
-------- -------- -------- --------
Net Cash Provided by Operating
Activities $ 640 $ 29,303 $ 5,484 $ 40,096
======== ======== ======== ========
Cash Used for Investing Activities $ (9,739) $(22,995) $(22,692) $(34,580)
======== ======== ======== ========
Cash Provided by (Used for)
Financing Activities $ 3,765 $(13,946) $ 11,201 $(26,364)
======== ======== ======== ========
Forward-Looking Statements "Safe Harbor"
Statement under the Private Securities Litigation Reform Act of
1995
This press release contains forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on management's current expectations and observations.
Included among the factors that, in the Company's view, could
cause actual results to differ materially from the forward-looking
statements contained in this press release are the following:
- the effects of continuing declines in industry conditions that
have required the Company to restructure its outstanding
indebtedness;
- the Company's ability to manage and repay its substantial
indebtedness;
- the Company's ability to maintain financial ratios and comply
with the financial covenants in its credit facilities; the
Company's ability to continue to operate as a going concern;
- the Company's ability to effectively operate its business and
manage its growth while complying with operating covenants in its
credit facilities;
- the Company's ability to generate the significant amounts of
cash necessary to service its debt obligations;
- very high volatility in the Company's revenues and costs,
including volatility caused by increasing oil prices;
- excess supplies of dry bulk vessels in all classes and
resulting heavy pressure on freight rates;
- adverse weather conditions that may significantly decrease the
volume of many dry bulk cargoes;
- the stability and continued growth of the Asian and Latin
American economies and rising inflation in China;
- the Company's vessels exceeding their economic useful life and
the risks associated with operating older vessels;
- the Company's ability to grow its vessel fleet and effectively
manage its growth;
- impairments of the Company's long lived assets;
- compliance with environmental laws and regulations and the
implementation of new environmental laws and regulations; and
- other factors that are described in the "Risk Factors" sections
of the Company's reports filed with the Securities and Exchange
Commission.
About TBS International plc TBS is a
fully-integrated transportation service company that provides
worldwide shipping solutions to a diverse client base of industrial
shippers. Through the TBS Five Star Service consisting of ocean
transportation, operations, logistics, port services, and strategic
planning, TBS offers total project coordination and door-to-door
supply chain management. The TBS shipping network operates liner,
parcel and dry bulk services, supported by a fleet of multipurpose
tweendeckers and handysize and handymax bulk carriers, including
specialized heavy-lift vessels and newbuild tonnage. TBS has
developed its business around key trade routes between Latin
America and China, Japan and South Korea, as well as select ports
in North America, Africa, the Caribbean and the Middle East. Visit
our website at www.tbsship.com
For more information, please contact: Company Contact: Ferdinand
V. Lepere Senior Executive Vice President and Chief Financial
Officer TBS International plc Tel. 914-961-1000
InvestorRequest@tbsship.com Investor Relations / Media: Nicolas
Bornozis Capital Link, Inc. New York Tel. 212-661-7566 E-mail:
tbs@capitallink.com
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