Recorded Net Income of $18.3 Million in
Q4 2018 Marking a Strong End to 2018
Genco Shipping & Trading Limited (NYSE:GNK) (“Genco” or the
“Company”), the largest U.S. headquartered drybulk shipowner
focused on the transportation of major and minor bulk commodities
globally, today reported its financial results for the three months
and twelve months ended December 31, 2018.
The following financial review discusses the
results for the three and twelve months ended December 31, 2018 and
December 31, 2017.
Fourth Quarter 2018 and
Year-to-Date Highlights
- Recorded net income of $18.3 million for the fourth quarter of
2018
- Basic and diluted earnings per share of $0.44
- Adjusted net income of $16.3 million or adjusted basic and
diluted earnings per share of $0.39, excluding a $2.0 million gain
on sale of vessels
- Net revenue (voyage revenues minus voyage expenses and charter
hire expenses) totaled $75.6 million during Q4 2018, 27% higher
than the same period of 2017
- TCE increased to $13,237 for Q4 2018, marking a year-over-year
improvement of 23%
- TCE for 2018 reached $11,364, the Company’s highest level since
2011
- Our 2018 TCE outperformed the relevant Baltic Exchange
benchmark sub-indices as adjusted for our owned fleet profile by
approximately $500 per vessel per day, highlighting the importance
of our expanded commercial platform1
- Maintained low daily vessel operating expenses (“DVOE”) of
$4,336 per vessel per day during Q4 2018, as a result of our
industry leading cost efficient structure
- During 2018, DVOE was $4,379 per vessel per day, which is below
our 2018 budget without sacrificing our high safety and maintenance
standards
- Our cash position as of December 31, 2018 was $202.8
million
- Recorded EBITDA of $44.4 million during Q4 2018 and $65.3
million for the full year of 2018
- Adjusted EBITDA of $42.4 million for Q4 2018, after excluding a
$2.0 million of gain on sale of vessels2
- Adjusted EBITDA of $122.9 million for 2018, after excluding
$56.6 million for impairment of vessels assets, $4.5 million for a
loss on debt extinguishment and $3.5 million for gain on sale of
vessels2
- Entered into an amendment to our $460 Million Credit Facility
in February 2019 providing an additional tranche of up to $35
million to cover up to 90% of the expenses related to the
acquisition and installation of exhaust gas cleaning systems
(“scrubbers”) on our 17 Capesize vessels
- Completed the sales of a total of eight vessels as part of our
fleet renewal program during 2018, including:
- The sales of five vessels during the fourth quarter of 2018 for
a cumulative gain of $2.0 million
- These sales were in addition to the two vessels sold in Q3
2018, the Genco Surprise and Genco Progress, for a cumulative gain
of $1.5 million
- In January 2019, we sold the Genco Vigour, which was our last
remaining unencumbered vessel
________________________1 TCE relative
performance is benchmarked against the weighted average of the
relevant sub-indices of the Baltic Dry Index as published by the
Baltic Exchange (BCI 5TC, BPI, BSI 58 and BHSI) net of 5% for
commissions, adjusted for our owned fleet composition as well as
the characteristics of our vessels.2 We believe the non-GAAP
measure presented provides investors with a means of better
evaluating and understanding the Company’s operating performance.
Please see Summary Consolidated Financial and Other Data below for
a further reconciliation.
John C. Wobensmith, Chief Executive Officer,
commented, “During 2018, we continued to execute upon the Company’s
strategic plan as we further developed our active commercial
platform, took steps to optimize our fleet composition and enhanced
our capital structure. Specifically, under the first full year of
our revamped commercial operation, we outperformed our benchmarks
meaningfully which, together with firm market conditions, led Genco
to generate significant operating cash flows while reinforcing an
already strong balance sheet. So far in 2019, seasonal factors
coupled with events such as the Vale dam tragedy have led to
volatility in freight rates in the short-term. We believe such
short-term volatility highlights the importance of our solid
liquidity position as well as our approach of deploying a fleet
with direct exposure to the major and minor drybulk commodities
both of which present strong long-term demand prospects underpinned
by a backdrop of low net fleet growth.”
Our Commercial Strategy Continues to
Actively Drive Revenue and Margin Growth
Overall, our fleet deployment strategy remains
weighted towards short-term fixtures, which provides optionality
for the Company. We believe that our active commercial strategy,
together with our efficient cost structure, provides continuing
potential for increased margins. Furthermore, our barbell approach
to fleet composition provides direct exposure to both major and
minor bulk commodities enabling our fleet’s cargo carrying
capabilities to closely mirror those of global commodity trade
flows.
Our fourth quarter of 2018 TCE results by class
are listed below. During the fourth quarter, we took advantage of
our prior strategic positioning of select vessels to key designated
regions to drive TCE on our minor bulk fleet. Additionally, fixed
rate coverage at near 2018 peak levels on our Capesize fleet ahead
of a volatile quarter minimized exposure to a counter-seasonal
decline in freight rates. During the quarter, Genco’s approach to
fleet composition described above proved beneficial, as earnings on
the smaller vessels remained resilient despite the volatility in
the Capesize segment. Our TCE performance during the fourth quarter
of 2018 improved by 23% as compared to the same period the year
before.
- Capesize: $17,052
- Panamax: $10,134
- Ultramax, Supramax and Handymax: $12,724
- Handysize: $10,545
- Fleet average: $13,237
We currently have the following net TCE fixed
for the first quarter of 2019. We continue to take a portfolio
approach to the deployment of our Capesize fleet as we have fixed
several vessels on West Australian round voyages in the Pacific
while booking fronthaul voyages during Q4 2018 with our Atlantic
positions. For the minor bulk fleet, we continue benefiting from
scale in designated key regions where we have established a
critical mass.
- Capesize: $13,739 for 84% of the available Q1 2019 days
- Panamax: $7,140 for 70% of the available Q1 2019 days
- Ultramax and Supramax: $9,421 for 84% of the available Q1 2019
days
- Handysize: $7,056 for 89% of the available Q1 2019 days
- Fleet average: $10,042 for 85% of the available Q1 2019
days
Scrubber Facility
On February 28, 2019, we entered into an
amendment to our $460 Million Credit Facility to provide an
additional tranche of up to $35 million to cover up to 90% of the
expenses related to the acquisition and installation of scrubbers
on our 17 Capesize vessels. Borrowings under the $35 million
tranche will bear interest at LIBOR plus 250 basis points through
September 30, 2019 and LIBOR plus a range of 225 to 275 basis
points thereafter, dependent upon total net indebtedness to
consolidated EBITDA for the preceding four calendar quarters.
Nordea Bank ABP, New York Branch, Skandinaviska Enskilda
Banken AB (publ), Crédit Agricole Corporate and Investment Bank,
and Danish Ship Finance A/S are the lenders for the additional
tranche.
Fleet Renewal Program
During the second half of the year, the Company
agreed to sell eight vessels as part of our previously announced
fleet renewal program, achieving total gross proceeds of $52.5
million. Seven of these vessels were delivered to their respective
buyers in 2018, while the remaining vessel delivered in January
2019. Specifically, in Q3 2018, we delivered two vessels to their
respective buyers, namely: the Genco Surprise, a 1998-built Panamax
vessel, on August 7, 2018, and the Genco Progress, a 1999-built
Handysize vessel, on September 13, 2018. In Q4 2018, we delivered
five vessels to their respective buyers, namely: the Genco
Cavalier, a 2007-built Supramax vessel, on October 16, 2018; the
Genco Explorer, a 1999-built Handysize vessel, on November 13,
2018; the Genco Muse, a 2001-built Handymax vessel, on December 5,
2018; the Genco Beauty, a 1999-built Panamax vessel, on December
17, 2018; and the Genco Knight, a 1999-built Panamax vessel, on
December 26, 2018. Furthermore, we completed the sale of the Genco
Vigour, a 1999-built Panamax vessel, on January 28, 2019. As a
result of the sales, Genco will save anticipated drydocking and
ballast water treatment system installation costs of approximately
$11.5 million previously scheduled for 2018 and 2019.
Our fleet now consists of 58 vessels with a
carrying capacity of 5,075,000 dwt. On a per sector basis, the
fleet currently consists of 17 Capesize, two Panamax, six Ultramax,
20 Supramax, and 13 Handysize vessels with an average age of 9.0
years, representing reduction in average age of almost two years
from our prior fleet composition of 60 vessels before any of the
2018 and 2019 vessel sale and purchase activity.
Financial Review: 2018 Fourth
Quarter
The Company recorded net income for the fourth
quarter of 2018 of $18.3 million, or $0.44 basic and diluted net
earnings per share. Comparatively, for the three months ended
December 31, 2017, the Company recorded net income of $2.6 million,
or $0.07 basic and diluted net earnings per share.
The Company’s revenues increased to $112.2
million for the three months ended December 31, 2018, 50% higher
than the $74.9 million recorded for the three months ended December
31, 2017. The increase in revenues was primarily due to the
employment of vessels on spot market voyage charters as well as
higher spot market rates achieved by the majority of our
vessels.
The average daily time charter equivalent, or
TCE, rates obtained by the Company’s fleet was $13,237 per day for
the three months ended December 31, 2018 as compared to $10,761 for
the three months ended December 31, 2017. The increase in TCE was
primarily due to higher rates achieved by the majority of the
vessels in our fleet during the fourth quarter of 2018 versus the
fourth quarter of 2017. During the fourth quarter of 2018, the
drybulk freight market remained at healthy levels despite pockets
of volatility in the middle of the quarter for Capesize vessel
earnings. For the full year of 2018, the Baltic Dry Index averaged
1,353, its highest level since 2011 led by strong global steel
production and firm growth in imports of raw materials from
developing economies met with the backdrop of low net fleet growth
on the supply side. Subsequently, in the first quarter of 2019,
seasonal factors such as frontloaded newbuilding deliveries, the
Lunar New Year celebration and weather-related disruptions
hampering cargo availability have been exacerbated by the tragic
Vale dam breach, further coal restrictions in China as well as the
overhang of the U.S.-China trade dispute. All of these factors have
affected the market since the beginning of the year. Nonetheless,
the Company has fixed approximately 85% of its Q1 2019 days at a
fleet-wide average TCE of $10,042.
Total operating expenses were $86.2 million for
the three months ended December 31, 2018 compared to $64.9 million
for the three months ended December 31, 2017. Included in the three
months ended December 31, 2018 was a gain on sale of vessels
totaling $2.0 million. Voyage expenses rose to $36.3 million for
the three months ended December 31, 2018 versus $15.6 million
during the prior year period primarily due to the increased
employment of vessels on spot market voyage charters as part of our
commercial strategy, in which we incur significantly higher voyage
expenses as compared to time charters, spot market-related time
charters and pool arrangements. Vessel operating expenses
marginally increased to $24.8 million for the three months ended
December 31, 2018, from $24.2 million for the three months ended
December 31, 2017. General and administrative expenses were $6.4
million for the fourth quarter of 2018 compared to $5.6 million for
the fourth quarter of 2017. Depreciation and amortization expenses
increased to $18.4 million for the three months ended December 31,
2018 from $17.6 million for the three months ended December 31,
2017.
Daily vessel operating expenses, or DVOE,
amounted to $4,336 per vessel per day for the fourth quarter of
2018, and $4,379 for the twelve months ended December 31, 2018,
below our budget of $4,440 per vessel per day and compared to
$4,387 per vessel per day for the fourth quarter of 2017. The
decrease in DVOE was predominantly due to lower maintenance related
expenses, and partially offset by higher crew related expenses. We
believe daily vessel operating expenses are best measured for
comparative purposes over a 12‑month period in order to take into
account all of the expenses that each vessel in our fleet will
incur over a full year of operation. Based on estimates provided by
our technical managers and management’s views, our DVOE budget for
2019 is $4,525 per vessel per day on a weighted average basis for
the entire year for our fleet.
Apostolos Zafolias, Chief Financial Officer,
commented, “We ended 2018 with a sizeable cash balance, as we
benefited from a stronger rate environment, a strengthened
commercial strategy and low direct vessel operating expenses.
During the year, we also continued to access capital under
favorable terms, serving to strengthen our balance sheet and
support our ability to grow and invest in the fleet. In addition to
our $108 million acquisition credit facility, we closed on an
oversubscribed $460 million credit facility and subsequently
upsized it to provide an additional tranche of up to $35 million to
support our comprehensive IMO 2020 strategy.”
Financial Review: Twelve Months
2018
The Company recorded a net loss of $32.9 million
or $0.86 basic and diluted net loss per share for the twelve months
ended December 31, 2018. This compares to a net loss of $58.7
million or $1.71 basic and diluted net loss per share for the
twelve months ended December 31, 2017. Net loss for the twelve
months ended December 31, 2018 and 2017, includes non-cash vessel
impairment charges of $56.6 million and $22.0 million,
respectively. Net loss for the twelve months ended December 31,
2018 also includes a loss on debt extinguishment in the amount of
$4.5 million as well as a gain from sale of vessels totaling $3.5
million. Net loss for the twelve months ended December 31, 2017
includes a gain on sale of vessels in the amount of $7.7 million.
Revenues increased to $367.5 million for the twelve months ended
December 31, 2018 compared to $209.7 million for the twelve months
ended December 31, 2017. The increase in revenues was primarily due
to the employment of vessels on spot market voyage charters as well
as higher spot market rates achieved by the majority of our
vessels. Voyage expenses increased to $114.9 million for the
twelve months ended December 31, 2018 from $25.3 million for the
same period in 2017. This increase was primarily due to the
employment of vessels on spot market voyage charters during the
2018 as part of our commercial strategy, in which we incur
significantly higher voyage expenses as compared to time charters,
spot market-related time charters and pool arrangements. TCE rates
obtained by the Company increased to $11,364 per day for the twelve
months ended December 31, 2018 from $8,474 per day for the twelve
months ended December 31, 2017, due to higher rates achieved by the
majority of the vessels in our fleet. Total operating expenses for
the twelve months ended December 31, 2018 and 2017 were $367.0
million and $239.3 million, respectively. Total operating expenses
include non-cash vessel impairment charges of $56.6 million
relating to the revaluation of certain vessels that comprise our
fleet renewal plan to their respective fair values for the twelve
months ended December 31, 2018, as well as a $3.5 million gain from
sale of vessels. For the twelve months ended December 31, 2017,
total operating expenses include non-cash vessel impairment charges
totaling $22.0 million and a gain on sale of vessels of $7.7
million. General and administrative expenses for the twelve months
ended December 31, 2018 increased to $23.1 million as compared to
the $22.2 million in the same period of 2017. Daily vessel
operating expenses per vessel were $4,379 versus $4,417 in the
comparative periods. The decrease in DVOE was predominantly due to
lower drydocking related expenses, partially offset by higher
expenses crew related expenses. EBITDA for the twelve months ended
December 31, 2018 amounted to $65.3 million compared to $42.0
million during the prior period. During the twelve months of 2018
and 2017, EBITDA included non-cash impairment charges, loss on debt
extinguishment and gains on sale of vessels as mentioned above.
Excluding these non-cash charges, our adjusted EBTIDA would have
amounted to $122.9 million and $56.3 million, for the respective
periods.
Liquidity and Capital
Resources
Cash Flow
Net cash provided by operating activities for
the year ended December 31, 2018 was $65.9 million as compared to
$24.1 million for the year ended December 31, 2017. Included
in the net loss during the year ended December 31, 2018 were $56.6
million of non-cash impairment charges, as well as a $4.5 million
loss on the extinguishment of debt, a $5.3 million payment on the
$400 Million Credit Facility and gains totaling $3.5 million
arising from the sale of seven vessels. Included in the net
loss during the year ended December 31, 2017 were $22.0 million of
non-cash impairment charges, paid in kind interest incurred of $4.5
million related to the $400 Million Credit Facility, as well as a
gain on sale of vessels in the amount of $7.7 million due to the
sale of five vessels. Depreciation and amortization expense for the
year ended December 31, 2018 decreased by $2.8 million primarily
due to the revaluation of nine of our vessels that were written
down to their estimated fair market value during the first quarter
of 2018, as well as the revaluation of six of our vessels that were
written down to their estimated fair market value during the second
and third quarters of 2017. These decreases in depreciation
were partially offset by an increase in depreciation expense for
the six vessels delivered during the third quarter of 2018.
Additionally, the fluctuation in inventories increased by $7.7
million due to additional fuel inventory for our vessels as the
result of the employment of our vessels on spot market voyage
charters. There was also a $7.6 million increase in the fluctuation
in due from charterers due to the timing of payments received from
charterers. These changes were offset by a $5.5 million
decrease in deferred drydocking costs incurred because there were
less vessels that completed drydocking during 2018 as compared to
2017.
Net cash used in investing activities was $195.4
million during the year ended December 31, 2018 as compared to net
cash provided by investing activities of $17.4 million during the
year ended December 31, 2017. Net cash used in investing
activities during 2018 consisted primarily of $241.9 million
purchase of vessels related primarily to the six vessels that
delivered to us during the third quarter of 2018. This cash
outflow during 2018 was partially offset by $44.3 million of
proceeds from the sale of seven vessels during the second half of
2018 and $3.6 million of proceeds received for hull and machinery
claims related primarily to the receipt of the remaining insurance
settlement for the main engine repair claim for the Genco
Tiger. Net cash provided by investing activities during 2017
consisted primarily of $15.5 million of proceeds from the sale of
five vessels during 2017 and $2.4 million of proceeds received for
hull and machinery claims related primarily to the receipt of the
remaining insurance settlement for the main engine repair claims
for the Baltic Lion and the Genco Tiger.
Net cash provided by financing activities during
the year ended December 31, 2018 was $127.3 million as compared to
net cash used in financing activities of $5.6 million during the
year ended December 31, 2017. Net cash provided by financing
activities of $127.3 million during 2018 consisted primarily of the
$460.0 million drawdown on the $460 Million Credit Facility, the
$108.0 million drawdown on the $108 Million Credit Facility and the
net proceeds from the issuance of common stock on June 19, 2018 of
$109.8 million partially offset by the following: $399.6
million repayment of debt under the $400 Million Credit Facility;
$93.9 million repayment of debt under the $98 Million Credit
Facility; $25.5 million repayment of debt under the 2014 Term Loan
Facilities; $15.0 million repayment of debt under the $460 Million
Credit Facility; $11.8 million payment of deferred financing costs;
$3.0 million payment of debt extinguishment costs and $1.6 million
repayment of debt under the $108 Million Credit Facility. On
August 14, 2018, we entered into the $108 Million Credit Facility
to finance a portion of the purchase price for the six vessels
acquired during the three months ended September 30, 2018. On
June 5, 2018, the $460 Million Credit Facility refinanced the
following three existing credit facilities; the $400 Million Credit
Facility, the $98 Million Credit Facility and the 2014 Term Loan
Facilities. Net cash used in financing activities of $5.6
million for the year ended December 31, 2017 consisted of the
following: $2.8 million repayment of debt under the 2014 Term Loan
Facilities; $1.3 million repayment of debt under the $98 Million
Credit Facility; $1.1 million payment of Series A Preferred Stock
issuance costs; and $0.4 million repayment of debt under the
$400 Million Credit Facility.
Capital Expenditures
We make capital expenditures from time to time
in connection with vessel acquisitions. We completed installment
payment obligations relating to vessels we agreed to acquire in
2018 during the third quarter of 2018 using a combination of cash
on hand and commercial bank financing as previously
reported.
In addition to acquisitions that we may
undertake in future periods, we will incur additional capital
expenditures due to special surveys and drydockings for our fleet.
We did not drydock any of our vessels during the fourth quarter of
2018. We currently expect two vessels to drydock during the first
quarter of 2019, and an additional 33 vessels to drydock during the
remainder of the year.
We also anticipate incurring capital
expenditures with respect to the installation of ballast water
treatment systems, which we intend to fund with cash on hand.
In addition, we expect to incur capital expenditures for the
installation of scrubbers on our 17 Capesize vessels and are
considering options to install scrubbers on an additional 15 minor
bulk vessels. We expect the cost for our Capesize vessels,
including installation, to be approximately $2.25 million per
vessel, which may vary according to the specifications of our
vessels and technical aspects of the installation, among other
variables. We anticipate funding the acquisition and installation
of scrubbers on our 17 Capesize vessels through a combination of
commercial bank debt from an additional tranche of up to $35
million under our $460 Million Credit Facility and cash on
hand.
We estimate our capital expenditures related to
drydocking, including capitalized costs incurred during drydocking
related to vessel assets and vessel equipment, ballast water
treatment system costs, scrubber costs and scheduled off-hire days
for our fleet through 2019 to be:
|
Q1
2019 |
Q2
2019 |
Q3
2019 |
Q4
2019 |
Estimated Drydock Costs
(1) |
$2.5
million |
$19.2
million |
$8.7
million |
$3.2
million |
Estimated Scrubber Costs
(2) |
$0.0
million |
$22.5
million |
$15.8
million |
$0.0
million |
Estimated Offhire Days
(3) |
40 |
480 |
295 |
60 |
|
|
|
|
|
(1) Estimates are based on our budgeted cost of
drydocking our vessels in China. Actual costs will vary based on
various factors, including where the drydockings are actually
performed. We expect to fund these costs with cash on hand. These
costs do not include drydock expense items that are reflected in
vessel operating expenses. Included are estimated costs associated
with the installation of ballast water treatment systems. Estimated
costs presented include approximately $7.5 million of costs
associated with 6 vessels that could potentially be sold based on
our fleet renewal program.
(2) We anticipate funding the acquisition and
installation of scrubbers on our 17 Capesize vessels through a
combination of commercial bank debt from an additional tranche of
up to $35 million under our $460 Million Credit Facility and cash
on hand. Assumes expenditures on date of installation.
(3) Actual length will vary based on the
condition of the vessel, yard schedules and other factors.
Estimated offhire presented includes approximately 120 days
associated with 6 vessels that could potentially be sold based on
our fleet renewal program.
Summary Consolidated Financial
and Other Data
The following table summarizes Genco Shipping &
Trading Limited’s selected consolidated financial and other data
for the periods indicated below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedDecember 31,
2018 |
|
Three Months EndedDecember 31,
2017 |
|
Twelve Months EndedDecember 31,
2018 |
|
Twelve Months EndedDecember 31,
2017 |
|
|
|
|
(Dollars in thousands, except share and per share
data) |
|
(Dollars in thousands, except share and per share
data) |
|
|
|
|
(unaudited) |
|
(unaudited) |
|
|
INCOME STATEMENT DATA: |
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
Voyage
revenues |
$ |
112,185 |
|
|
$ |
74,918 |
|
|
$ |
367,522 |
|
|
$ |
209,698 |
|
|
|
Total
revenues |
|
112,185 |
|
|
|
74,918 |
|
|
|
367,522 |
|
|
|
209,698 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Voyage
expenses |
|
36,305 |
|
|
|
15,579 |
|
|
|
114,855 |
|
|
|
25,321 |
|
|
Vessel
operating expenses |
|
24,785 |
|
|
|
24,219 |
|
|
|
97,427 |
|
|
|
98,086 |
|
|
Charter
hire expenses |
|
302 |
|
|
|
- |
|
|
|
1,534 |
|
|
|
- |
|
|
General and administrative expenses (inclusive of
nonvested stock amortization |
|
6,380 |
|
|
|
5,640 |
|
|
|
23,141 |
|
|
|
22,190 |
|
|
expense of $0.5 million, $0.5 million, $2.2 million and
$4.1 million, respectively) |
|
|
|
|
|
|
|
|
Technical
management fees |
|
2,075 |
|
|
|
1,925 |
|
|
|
8,000 |
|
|
|
7,659 |
|
|
Depreciation and amortization |
|
18,370 |
|
|
|
17,582 |
|
|
|
68,976 |
|
|
|
71,776 |
|
|
Impairment
of vessel assets |
|
- |
|
|
|
- |
|
|
|
56,586 |
|
|
|
21,993 |
|
|
Gain on
sale of vessels |
|
(2,004 |
) |
|
|
- |
|
|
|
(3,513 |
) |
|
|
(7,712 |
) |
|
|
Total
operating expenses |
|
86,213 |
|
|
|
64,945 |
|
|
|
367,006 |
|
|
|
239,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss) |
|
25,972 |
|
|
|
9,973 |
|
|
|
516 |
|
|
|
(29,615 |
) |
|
|
|
|
|
|
|
|
|
|
|
Other
(expense) income: |
|
|
|
|
|
|
|
|
Other
income (expense) |
|
95 |
|
|
|
(12 |
) |
|
|
367 |
|
|
|
(164 |
) |
|
Interest
income |
|
1,058 |
|
|
|
546 |
|
|
|
3,801 |
|
|
|
1,551 |
|
|
Interest
expense |
|
(8,842 |
) |
|
|
(7,938 |
) |
|
|
(33,091 |
) |
|
|
(30,497 |
) |
|
Loss on
debt extinguishment |
|
- |
|
|
|
- |
|
|
|
(4,533 |
) |
|
|
- |
|
|
|
Other
expense |
|
(7,689 |
) |
|
|
(7,404 |
) |
|
|
(33,456 |
) |
|
|
(29,110 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes |
|
18,283 |
|
|
|
2,569 |
|
|
|
(32,940 |
) |
|
|
(58,725 |
) |
|
Income tax
expense |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
$ |
18,283 |
|
|
$ |
2,569 |
|
|
$ |
(32,940 |
) |
|
$ |
(58,725 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net
earnings (loss) per share - basic |
$ |
0.44 |
|
|
$ |
0.07 |
|
|
$ |
(0.86 |
) |
|
$ |
(1.71 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net
earnings (loss) per share - diluted |
$ |
0.44 |
|
|
$ |
0.07 |
|
|
$ |
(0.86 |
) |
|
$ |
(1.71 |
) |
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding - basic |
|
41,704,296 |
|
|
|
34,559,830 |
|
|
|
38,382,599 |
|
|
|
34,242,631 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding - diluted |
|
41,792,956 |
|
|
|
34,682,302 |
|
|
|
38,382,599 |
|
|
|
34,242,631 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2018 |
|
December 31, 2017 |
|
|
BALANCE SHEET DATA (Dollars in thousands): |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
|
$ |
197,499 |
|
|
$ |
174,479 |
|
|
|
|
|
Restricted
cash |
|
|
|
4,947 |
|
|
|
7,234 |
|
|
|
|
|
Due from
charterers, net |
|
|
|
22,306 |
|
|
|
12,855 |
|
|
|
|
|
Prepaid
expenses and other current assets |
|
|
|
10,449 |
|
|
|
7,338 |
|
|
|
|
|
Inventories |
|
|
|
29,548 |
|
|
|
15,333 |
|
|
|
|
|
Vessels
held for sale |
|
|
|
5,702 |
|
|
|
- |
|
|
|
|
Total
current assets |
|
|
|
270,451 |
|
|
|
217,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncurrent
assets: |
|
|
|
|
|
|
|
|
|
Vessels,
net of accumulated depreciation of $244,529 and $213,431,
respectively |
|
|
|
1,344,870 |
|
|
$ |
1,265,577 |
|
|
|
|
|
Deferred
drydock, net |
|
|
|
9,544 |
|
|
|
13,382 |
|
|
|
|
|
Fixed
assets, net |
|
|
|
2,290 |
|
|
|
1,014 |
|
|
|
|
|
Other
noncurrent assets |
|
|
|
- |
|
|
|
514 |
|
|
|
|
|
Restricted
cash |
|
|
|
315 |
|
|
|
23,233 |
|
|
|
|
Total
noncurrent assets |
|
|
|
1,357,019 |
|
|
|
1,303,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
|
$ |
1,627,470 |
|
|
$ |
1,520,959 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
|
Accounts
payable and accrued expenses |
|
|
$ |
29,143 |
|
|
|
23,230 |
|
|
|
|
|
Current
portion of long-term debt |
|
|
|
66,320 |
|
|
|
24,497 |
|
|
|
|
|
Deferred
revenue |
|
|
|
6,404 |
|
|
|
4,722 |
|
|
|
|
Total
current liabilities |
|
|
|
101,867 |
|
|
|
52,449 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncurrent
liabilities |
|
|
|
|
|
|
|
|
|
Long-term
lease obligations |
|
|
|
3,468 |
|
|
|
2,588 |
|
|
|
|
|
Long-term
debt, net of deferred financing costs of $16,272 and $9,032,
respectively |
|
|
|
468,828 |
|
|
|
490,895 |
|
|
|
|
Total
noncurrent liabilities |
|
|
|
472,296 |
|
|
|
493,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities |
|
|
|
574,163 |
|
|
|
545,932 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments
and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
|
Common
stock |
|
|
|
416 |
|
|
|
345 |
|
|
|
|
|
Additional
paid-in capital |
|
|
|
1,740,163 |
|
|
|
1,628,355 |
|
|
|
|
|
Retained
deficit |
|
|
|
(687,272 |
) |
|
|
(653,673 |
) |
|
|
|
|
Total
equity |
|
|
|
1,053,307 |
|
|
|
975,027 |
|
|
|
|
Total
liabilities and equity |
|
|
$ |
1,627,470 |
|
|
$ |
1,520,959 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31,
2018 |
|
Twelve Months Ended December 31,
2017 |
|
|
STATEMENT OF CASH FLOWS (Dollars in
thousands): |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
Net
loss |
|
|
$ |
(32,940 |
) |
|
$ |
(58,725 |
) |
|
|
|
|
Adjustments
to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
68,976 |
|
|
|
71,776 |
|
|
|
|
|
Amortization of deferred financing costs |
|
|
|
3,035 |
|
|
|
2,325 |
|
|
|
|
|
PIK
interest, net |
|
|
|
- |
|
|
|
4,542 |
|
|
|
|
|
Payment of
PIK interest |
|
|
|
(5,341 |
) |
|
|
- |
|
|
|
|
|
Amortization of nonvested stock compensation expense |
|
|
|
2,231 |
|
|
|
4,053 |
|
|
|
|
|
Impairment
of vessel assets |
|
|
|
56,586 |
|
|
|
21,993 |
|
|
|
|
|
Gain on
sale of vessels |
|
|
|
(3,513 |
) |
|
|
(7,712 |
) |
|
|
|
|
Loss on
debt extinguishment |
|
|
|
4,533 |
|
|
|
- |
|
|
|
|
|
Insurance
proceeds for protection and indemnity claims |
|
|
|
303 |
|
|
|
765 |
|
|
|
|
|
Insurance
proceeds for loss of hire claims |
|
|
|
58 |
|
|
|
2,230 |
|
|
|
|
|
Change in
assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
Increase in due from
charterers |
|
|
|
(10,099 |
) |
|
|
(2,482 |
) |
|
|
|
|
|
Increase in prepaid
expenses and other current assets |
|
|
|
(6,626 |
) |
|
|
(5,875 |
) |
|
|
|
|
|
Increase in
inventories |
|
|
|
(14,215 |
) |
|
|
(6,485 |
) |
|
|
|
|
|
Decrease in other
noncurrent assets |
|
|
|
514 |
|
|
|
- |
|
|
|
|
|
|
Increase in accounts
payable and accrued expenses |
|
|
|
2,571 |
|
|
|
1,494 |
|
|
|
|
|
|
Increase in deferred
revenue |
|
|
|
1,190 |
|
|
|
3,234 |
|
|
|
|
|
|
Increase in lease
obligations |
|
|
|
880 |
|
|
|
720 |
|
|
|
|
|
|
Deferred drydock costs
incurred |
|
|
|
(2,236 |
) |
|
|
(7,782 |
) |
|
|
|
|
Net cash
provided by operating activities |
|
|
|
65,907 |
|
|
|
24,071 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
Purchase of
vessels, including deposits |
|
|
|
(241,872 |
) |
|
|
(262 |
) |
|
|
|
|
Purchase of
other fixed assets |
|
|
|
(1,462 |
) |
|
|
(290 |
) |
|
|
|
|
Net
proceeds from sale of vessels |
|
|
|
44,330 |
|
|
|
15,513 |
|
|
|
|
|
Insurance
proceeds for hull and machinery claims |
|
|
|
3,629 |
|
|
|
2,444 |
|
|
|
|
|
Net cash
(used in) provided by investing activities |
|
|
|
(195,375 |
) |
|
|
17,405 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
Proceeds
from the $108 Million Credit Facility |
|
|
|
108,000 |
|
|
|
- |
|
|
|
|
|
Repayments
on the $108 Million Credit Facility |
|
|
|
(1,580 |
) |
|
|
- |
|
|
|
|
|
Proceeds
from the $460 Million Credit Facility |
|
|
|
460,000 |
|
|
|
- |
|
|
|
|
|
Repayments
on the $460 Million Credit Facility |
|
|
|
(15,000 |
) |
|
|
- |
|
|
|
|
|
Repayments
on the $400 Million Credit Facility |
|
|
|
(399,600 |
) |
|
|
(400 |
) |
|
|
|
|
Repayments
on the $98 Million Credit Facility |
|
|
|
(93,939 |
) |
|
|
(1,332 |
) |
|
|
|
|
Repayments
on the 2014 Term Loan Facilities |
|
|
|
(25,544 |
) |
|
|
(2,763 |
) |
|
|
|
|
Payment of
debt extinguishment costs |
|
|
|
(2,962 |
) |
|
|
- |
|
|
|
|
|
Proceeds
from issuance of common stock |
|
|
|
110,249 |
|
|
|
- |
|
|
|
|
|
Payment of
common stock issuance costs |
|
|
|
(496 |
) |
|
|
- |
|
|
|
|
|
Payment of
Series A Preferred Stock issuance costs |
|
|
|
- |
|
|
|
(1,103 |
) |
|
|
|
|
Payment of
deferred financing costs |
|
|
|
(11,845 |
) |
|
|
- |
|
|
|
|
|
Net cash
provided by (used in) financing activities |
|
|
|
127,283 |
|
|
|
(5,598 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(decrease) increase in cash, cash equivalents and restricted
cash |
|
|
|
(2,185 |
) |
|
|
35,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of period |
|
|
|
204,946 |
|
|
|
169,068 |
|
|
|
Cash, cash
equivalents and restricted cash at end of period |
|
|
$ |
202,761 |
|
|
$ |
204,946 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
2018 |
|
|
|
|
|
|
Adjusted Net Income Reconciliation |
(unaudited) |
|
|
|
|
|
|
Net
Income |
$ |
18,283 |
|
|
|
|
|
|
|
|
- |
|
Gain on sale of
vessels |
|
(2,004 |
) |
|
|
|
|
|
|
|
|
|
Adjusted net
income |
$ |
16,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net earnings
per share - basic |
$ |
0.39 |
|
|
|
|
|
|
|
|
|
|
Adjusted net earnings
per share - diluted |
$ |
0.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding - basic |
|
41,704,296 |
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding - diluted |
|
41,792,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding - basic as per financial statements |
|
41,704,296 |
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
stock options |
|
- |
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
restricted stock awards |
|
88,660 |
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding - diluted as adjusted |
|
41,792,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
2018 |
|
Three Months Ended December 31,
2017 |
|
Twelve Months Ended December 31,
2018 |
|
Twelve Months Ended December 31,
2017 |
|
|
|
|
(Dollars in thousands) |
|
(Dollars in thousands) |
EBITDA Reconciliation: |
(unaudited) |
|
(unaudited) |
|
Net
Income (loss) |
$ |
18,283 |
|
|
$ |
2,569 |
|
|
$ |
(32,940 |
) |
|
$ |
(58,725 |
) |
|
+ |
Net interest
expense |
|
7,784 |
|
|
|
7,392 |
|
|
|
29,290 |
|
|
|
28,946 |
|
|
+ |
Depreciation and
amortization |
|
18,370 |
|
|
|
17,582 |
|
|
|
68,976 |
|
|
|
71,776 |
|
|
|
|
EBITDA(1) |
$ |
44,437 |
|
|
$ |
27,543 |
|
|
$ |
65,326 |
|
|
$ |
41,997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
+ |
Impairment of vessel
assets |
|
- |
|
|
|
- |
|
|
|
56,586 |
|
|
|
21,993 |
|
|
- |
|
Gain on sale of
vessels |
|
(2,004 |
) |
|
|
- |
|
|
|
(3,513 |
) |
|
|
(7,712 |
) |
|
+ |
Loss on debt
extinguishment |
|
- |
|
|
|
- |
|
|
|
4,533 |
|
|
|
- |
|
|
|
|
Adjusted
EBITDA |
$ |
42,433 |
|
|
$ |
27,543 |
|
|
$ |
122,932 |
|
|
$ |
56,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
|
December 31, 2018 |
|
December 31, 2017 |
|
December 31, 2018 |
|
December 31, 2017 |
FLEET DATA: |
(unaudited) |
|
(unaudited) |
Total
number of vessels at end of period |
|
59 |
|
|
|
60 |
|
|
|
59 |
|
|
|
60 |
|
Average
number of vessels (2) |
|
62.1 |
|
|
|
60.0 |
|
|
|
61.0 |
|
|
|
60.8 |
|
Total
ownership days for fleet (3) |
|
5,716 |
|
|
|
5,520 |
|
|
|
22,249 |
|
|
|
22,207 |
|
Total
chartered-in days (4) |
|
19 |
|
|
|
- |
|
|
|
132 |
|
|
|
- |
|
Total
available days for fleet (5) |
|
5,728 |
|
|
|
5,514 |
|
|
|
22,231 |
|
|
|
21,759 |
|
Total
available days for owned fleet (6) |
|
5,710 |
|
|
|
5,514 |
|
|
|
22,099 |
|
|
|
21,759 |
|
Total
operating days for fleet (7) |
|
5,661 |
|
|
|
5,468 |
|
|
|
21,975 |
|
|
|
21,466 |
|
Fleet
utilization (8) |
|
98.7 |
% |
|
|
99.1 |
% |
|
|
98.5 |
% |
|
|
98.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE DAILY RESULTS: |
|
|
|
|
|
|
|
Time
charter equivalent (9) |
$ |
13,237 |
|
|
$ |
10,761 |
|
|
$ |
11,364 |
|
|
$ |
8,474 |
|
Daily
vessel operating expenses per vessel (10) |
|
4,336 |
|
|
|
4,387 |
|
|
|
4,379 |
|
|
|
4,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
|
December 31, 2018 |
|
December 31, 2017 |
|
December 31, 2018 |
|
December 31, 2017 |
FLEET DATA: |
(unaudited) |
|
(unaudited) |
Ownership
days |
|
|
|
|
|
|
|
Capesize |
|
1,564.0 |
|
|
|
1,196.0 |
|
|
|
5,251.5 |
|
|
|
4,745.0 |
|
Panamax |
|
439.5 |
|
|
|
552.0 |
|
|
|
2,022.7 |
|
|
|
2,190.0 |
|
Ultramax |
|
552.0 |
|
|
|
368.0 |
|
|
|
1,731.2 |
|
|
|
1,460.0 |
|
Supramax |
|
1,855.4 |
|
|
|
1,932.0 |
|
|
|
7,588.4 |
|
|
|
7,665.0 |
|
Handymax |
|
65.4 |
|
|
|
92.0 |
|
|
|
338.4 |
|
|
|
632.8 |
|
Handysize |
|
1,239.2 |
|
|
|
1,380.0 |
|
|
|
5,316.4 |
|
|
|
5,514.6 |
|
Total |
|
5,715.6 |
|
|
|
5,520.0 |
|
|
|
22,248.5 |
|
|
|
22,207.4 |
|
|
|
|
|
|
|
|
|
|
|
|
Chartered-in days |
|
|
|
|
|
|
|
Capesize |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Panamax |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Ultramax |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Supramax |
|
- |
|
|
|
- |
|
|
|
49.4 |
|
|
|
- |
|
Handymax |
|
0.3 |
|
|
|
- |
|
|
|
37.3 |
|
|
|
- |
|
Handysize |
|
18.2 |
|
|
|
- |
|
|
|
45.8 |
|
|
|
- |
|
Total |
|
18.6 |
|
|
|
- |
|
|
|
132.5 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Available
days (owned & chartered-in fleet) |
|
|
|
|
|
|
|
Capesize |
|
1,563.7 |
|
|
|
1,195.0 |
|
|
|
5,171.7 |
|
|
|
4,651.3 |
|
Panamax |
|
439.5 |
|
|
|
552.0 |
|
|
|
2,021.7 |
|
|
|
2,020.5 |
|
Ultramax |
|
552.0 |
|
|
|
368.0 |
|
|
|
1,724.0 |
|
|
|
1,455.7 |
|
Supramax |
|
1,850.2 |
|
|
|
1,928.9 |
|
|
|
7,624.4 |
|
|
|
7,555.2 |
|
Handymax |
|
65.8 |
|
|
|
92.0 |
|
|
|
365.7 |
|
|
|
609.3 |
|
Handysize |
|
1,256.9 |
|
|
|
1,378.3 |
|
|
|
5,323.8 |
|
|
|
5,466.5 |
|
Total |
|
5,728.1 |
|
|
|
5,514.3 |
|
|
|
22,231.3 |
|
|
|
21,758.5 |
|
|
|
|
|
|
|
|
|
|
|
|
Available
days (owned fleet) |
|
|
|
|
|
|
|
Capesize |
|
1,563.7 |
|
|
|
1,195.0 |
|
|
|
5,171.7 |
|
|
|
4,651.3 |
|
Panamax |
|
439.5 |
|
|
|
552.0 |
|
|
|
2,021.7 |
|
|
|
2,020.5 |
|
Ultramax |
|
552.0 |
|
|
|
368.0 |
|
|
|
1,724.0 |
|
|
|
1,455.7 |
|
Supramax |
|
1,850.2 |
|
|
|
1,928.9 |
|
|
|
7,575.0 |
|
|
|
7,555.2 |
|
Handymax |
|
65.4 |
|
|
|
92.0 |
|
|
|
328.4 |
|
|
|
609.3 |
|
Handysize |
|
1,238.7 |
|
|
|
1,378.3 |
|
|
|
5,278.1 |
|
|
|
5,466.5 |
|
Total |
|
5,709.5 |
|
|
|
5,514.3 |
|
|
|
22,098.9 |
|
|
|
21,758.5 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
days |
|
|
|
|
|
|
|
Capesize |
|
1,563.5 |
|
|
|
1,192.0 |
|
|
|
5,169.5 |
|
|
|
4,519.4 |
|
Panamax |
|
420.9 |
|
|
|
547.5 |
|
|
|
1,970.9 |
|
|
|
2,009.6 |
|
Ultramax |
|
549.6 |
|
|
|
361.4 |
|
|
|
1,700.4 |
|
|
|
1,443.8 |
|
Supramax |
|
1,823.8 |
|
|
|
1,917.1 |
|
|
|
7,528.4 |
|
|
|
7,499.9 |
|
Handymax |
|
61.0 |
|
|
|
91.0 |
|
|
|
351.8 |
|
|
|
583.6 |
|
Handysize |
|
1,242.5 |
|
|
|
1,359.2 |
|
|
|
5,253.8 |
|
|
|
5,410.1 |
|
Total |
|
5,661.3 |
|
|
|
5,468.3 |
|
|
|
21,974.8 |
|
|
|
21,466.4 |
|
|
|
|
|
|
|
|
|
|
|
|
Fleet
utilization |
|
|
|
|
|
|
|
Capesize |
|
100.0 |
% |
|
|
99.7 |
% |
|
|
99.4 |
% |
|
|
96.4 |
% |
Panamax |
|
95.8 |
% |
|
|
99.2 |
% |
|
|
97.4 |
% |
|
|
98.6 |
% |
Ultramax |
|
99.6 |
% |
|
|
98.2 |
% |
|
|
98.2 |
% |
|
|
98.9 |
% |
Supramax |
|
98.3 |
% |
|
|
99.2 |
% |
|
|
98.6 |
% |
|
|
98.8 |
% |
Handymax |
|
92.7 |
% |
|
|
98.9 |
% |
|
|
93.6 |
% |
|
|
92.2 |
% |
Handysize |
|
98.8 |
% |
|
|
98.5 |
% |
|
|
98.4 |
% |
|
|
98.8 |
% |
Fleet
average |
|
98.7 |
% |
|
|
99.1 |
% |
|
|
98.5 |
% |
|
|
98.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
Average Daily Results: |
|
|
|
|
|
|
|
Time
Charter Equivalent |
|
|
|
|
|
|
|
Capesize |
$ |
17,052 |
|
|
$ |
16,749 |
|
|
$ |
15,422 |
|
|
$ |
12,017 |
|
Panamax |
|
10,134 |
|
|
|
9,474 |
|
|
|
9,648 |
|
|
|
7,974 |
|
Ultramax |
|
11,452 |
|
|
|
12,250 |
|
|
|
10,420 |
|
|
|
9,203 |
|
Supramax |
|
12,977 |
|
|
|
9,019 |
|
|
|
10,816 |
|
|
|
7,466 |
|
Handymax |
|
16,313 |
|
|
|
7,976 |
|
|
|
12,031 |
|
|
|
7,421 |
|
Handysize |
|
10,545 |
|
|
|
8,310 |
|
|
|
9,099 |
|
|
|
6,960 |
|
Fleet
average |
|
13,237 |
|
|
|
10,761 |
|
|
|
11,364 |
|
|
|
8,474 |
|
|
|
|
|
|
|
|
|
|
|
|
Daily
vessel operating expenses |
|
|
|
|
|
|
|
Capesize |
$ |
4,868 |
|
|
$ |
4,895 |
|
|
$ |
4,855 |
|
|
$ |
4,816 |
|
Panamax |
|
4,094 |
|
|
|
3,861 |
|
|
|
4,137 |
|
|
|
4,334 |
|
Ultramax |
|
4,557 |
|
|
|
4,659 |
|
|
|
4,531 |
|
|
|
4,511 |
|
Supramax |
|
4,195 |
|
|
|
4,505 |
|
|
|
4,303 |
|
|
|
4,517 |
|
Handymax |
|
3,745 |
|
|
|
3,690 |
|
|
|
4,767 |
|
|
|
4,160 |
|
Handysize |
|
3,896 |
|
|
|
3,967 |
|
|
|
4,035 |
|
|
|
3,972 |
|
Fleet
average |
|
4,336 |
|
|
|
4,387 |
|
|
|
4,379 |
|
|
|
4,417 |
|
|
|
|
|
|
|
|
|
|
|
|
- EBITDA represents net income (loss) plus net interest expense,
taxes, and depreciation and amortization. EBITDA is included
because it is used by management and certain investors as a measure
of operating performance. EBITDA is used by analysts in the
shipping industry as a common performance measure to compare
results across peers. Our management uses EBITDA as a performance
measure in consolidating internal financial statements and it is
presented for review at our board meetings. We believe that EBITDA
is useful to investors as the shipping industry is capital
intensive which often results in significant depreciation and cost
of financing. EBITDA presents investors with a measure in addition
to net income to evaluate our performance prior to these costs.
EBITDA is not an item recognized by U.S. GAAP (i.e. non-GAAP
measure) and should not be considered as an alternative to net
income, operating income or any other indicator of a company's
operating performance required by U.S. GAAP. EBITDA is not a
measure of liquidity or cash flows as shown in our consolidated
statement of cash flows. The definition of EBITDA used here may not
be comparable to that used by other companies.
- Average number of vessels is the number of vessels that
constituted our fleet for the relevant period, as measured by the
sum of the number of days each vessel was part of our fleet during
the period divided by the number of calendar days in that
period.
- We define ownership days as the aggregate number of days in a
period during which each vessel in our fleet has been owned by us.
Ownership days are an indicator of the size of our fleet over a
period and affect both the amount of revenues and the amount of
expenses that we record during a period.
- We define chartered-in days as the aggregate number of days in
a period during which we chartered-in third-party vessels.
- We define available days, which Genco has recently updated and
incorporated in the table above to better demonstrate the manner in
which Genco evaluates its business, as the number of our ownership
days and chartered-in days less the aggregate number of days that
our vessels are off-hire due to familiarization upon acquisition,
repairs or repairs under guarantee, vessel upgrades or special
surveys. Amounts for available days in the table above for
the periods ended December 31, 2017 have been adjusted for our
updated method of calculating available days. Companies in
the shipping industry generally use available days to measure the
number of days in a period during which vessels should be capable
of generating revenues.
- We define available days for the owned fleet as available days
less chartered-in days.
- We define operating days as the number of our total available
days in a period less the aggregate number of days that the vessels
are off-hire due to unforeseen circumstances. The shipping industry
uses operating days to measure the aggregate number of days in a
period during which vessels actually generate revenues. Amounts for
operating days in the table above for the periods ended December
31, 2017 have been adjusted for our updated method of calculating
available days.
- We calculate fleet utilization, which Genco has recently
updated and incorporated in the table above to better demonstrate
the manner in which Genco evaluates its business, as the number of
our operating days during a period divided by the number of
ownership days plus chartered-in days less drydocking days. Amounts
for fleet utilization in the table above for the periods ended
December 31, 2017 have been adjusted for our updated method of
calculating fleet utilization.
- We define TCE rates as our voyage revenues less voyage expenses
and charter hire expenses, divided by the number of the available
days of our owned fleet during the period, which is consistent with
industry standards. TCE rate is a common shipping industry
performance measure used primarily to compare daily earnings
generated by vessels on time charters with daily earnings generated
by vessels on voyage charters, because charterhire rates for
vessels on voyage charters are generally not expressed in per-day
amounts while charterhire rates for vessels on time charters
generally are expressed in such amounts.
|
Three Months Ended December 31,
2018 |
|
Three Months Ended December 31,
2017 |
|
Twelve Months Ended December 31,
2018 |
|
Twelve Months Ended December 31,
2017 |
Total Fleet |
(unaudited) |
|
(unaudited) |
Voyage revenues (in
thousands) |
$ |
112,185 |
|
|
$ |
74,918 |
|
|
$ |
367,522 |
|
|
$ |
209,698 |
|
Voyage expenses (in
thousands) |
|
36,305 |
|
|
|
15,579 |
|
|
|
114,855 |
|
|
|
25,321 |
|
Charter hire expenses
(in thousands) |
|
302 |
|
|
|
- |
|
|
|
1,534 |
|
|
|
- |
|
|
|
75,578 |
|
|
|
59,339 |
|
|
|
251,133 |
|
|
|
184,377 |
|
|
|
|
|
|
|
|
|
Total available days
for owned fleet |
|
5,710 |
|
|
|
5,514 |
|
|
|
22,099 |
|
|
|
21,759 |
|
Total TCE rate |
$ |
13,237 |
|
|
$ |
10,761 |
|
|
$ |
11,364 |
|
|
$ |
8,474 |
|
|
|
|
|
|
|
|
|
- We define daily vessel operating expenses to include
crew wages and related costs, the cost of insurance expenses
relating to repairs and maintenance (excluding drydocking), the
costs of spares and consumable stores, tonnage taxes and other
miscellaneous expenses. Daily vessel operating expenses are
calculated by dividing vessel operating expenses by ownership days
for the relevant period.
Debt Overview
Debt outstanding as of December 31, 2018, gross
of unamortized debt issuance costs and inclusive of the current
portion of long-term debt, amounted to $551 million. On February
28, 2019, we entered into an amendment to our $460 Million Credit
Facility providing an additional tranche of up to $35 million to
cover up to 90% of the expenses related to the acquisition and
installation of scrubbers on our 17 Capesize vessels. Borrowings
under the $35 million tranche will bear interest at LIBOR plus 250
basis points through September 30, 2019 and LIBOR plus a range of
225 to 275 basis points thereafter.
|
|
|
December 31, 2018 |
|
December 31, 2017 |
|
|
Long-term debt,
net consists of the following: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal amount |
|
|
$ |
551,420 |
|
|
$ |
519,083 |
|
|
|
PIK interest |
|
|
|
- |
|
|
|
5,341 |
|
|
|
Less: Unamortized debt
issuance costs |
|
|
|
(16,272 |
) |
|
|
(9,032 |
) |
|
|
Less: Current
portion |
|
|
|
(66,320 |
) |
|
|
(24,497 |
) |
|
|
Long-term debt,
net |
|
|
$ |
468,828 |
|
|
$ |
490,895 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2018 |
|
December 31, 2017 |
|
Principal |
|
Unamortized Debt Issuance
Cost |
|
Principal |
|
Unamortized Debt Issuance
Cost |
|
|
|
|
|
|
$460 Million Credit
Facility |
$ |
445,000 |
|
|
$ |
14,423 |
|
|
$ |
- |
|
|
$ |
- |
|
$108 Million Credit
Facility |
|
106,420 |
|
|
|
1,849 |
|
|
|
- |
|
|
|
- |
|
$400 Million Credit
Facility |
|
- |
|
|
|
- |
|
|
|
399,600 |
|
|
|
6,332 |
|
$98 Million Credit
Facility |
|
- |
|
|
|
- |
|
|
|
93,939 |
|
|
|
1,370 |
|
2014 Term Loan
Facilities |
|
- |
|
|
|
- |
|
|
|
25,544 |
|
|
|
1,330 |
|
PIK interest |
|
- |
|
|
|
- |
|
|
|
5,341 |
|
|
|
- |
|
|
$ |
551,420 |
|
|
$ |
16,272 |
|
|
$ |
524,424 |
|
|
$ |
9,032 |
|
|
|
|
|
|
|
|
|
About Genco Shipping & Trading
Limited
Genco Shipping & Trading Limited transports
iron ore, coal, grain, steel products and other drybulk cargoes
along worldwide shipping routes. As of March 5, 2019, Genco
Shipping & Trading Limited’s fleet consists of 17 Capesize, two
Panamax, six Ultramax, 20 Supramax and 13 Handysize vessels with an
aggregate capacity of approximately 5,075,000 dwt.
The following table reflects Genco’s fleet list
as of March 5, 2019:
|
|
Vessel |
DWT |
Year
Built |
Capesize |
|
|
1 |
|
Genco Resolute |
181,060 |
2015 |
2 |
|
Genco Endeavour |
181,060 |
2015 |
3 |
|
Genco Constantine |
180,183 |
2008 |
4 |
|
Genco Augustus |
180,151 |
2007 |
5 |
|
Genco Liberty |
180,032 |
2016 |
6 |
|
Genco Defender |
180,021 |
2016 |
7 |
|
Baltic Lion |
179,185 |
2012 |
8 |
|
Genco Tiger |
179,185 |
2011 |
9 |
|
Genco London |
177,833 |
2007 |
10 |
|
Baltic Wolf |
177,752 |
2010 |
11 |
|
Genco Titus |
177,729 |
2007 |
12 |
|
Baltic Bear |
177,717 |
2010 |
13 |
|
Genco Tiberius |
175,874 |
2007 |
14 |
|
Genco Commodus |
169,098 |
2009 |
15 |
|
Genco Hadrian |
169,025 |
2008 |
16 |
|
Genco Maximus |
169,025 |
2009 |
17 |
|
Genco Claudius |
169,001 |
2010 |
Panamax |
|
|
1 |
|
Genco Thunder |
76,588 |
2007 |
2 |
|
Genco Raptor |
76,499 |
2007 |
Ultramax |
|
|
1 |
|
Baltic
Hornet |
63,574 |
2014 |
2 |
|
Baltic
Mantis |
63,470 |
2015 |
3 |
|
Baltic
Scorpion |
63,462 |
2015 |
4 |
|
Baltic
Wasp |
63,389 |
2015 |
5 |
|
Genco
Weatherly |
61,556 |
2014 |
6 |
|
Genco
Columbia |
60,294 |
2016 |
|
|
|
Supramax |
|
|
1 |
|
Genco Hunter |
58,729 |
2007 |
2 |
|
Genco
Auvergne |
58,020 |
2009 |
3 |
|
Genco
Rhone |
58,018 |
2011 |
4 |
|
Genco
Ardennes |
58,018 |
2009 |
5 |
|
Genco
Brittany |
58,018 |
2010 |
6 |
|
Genco
Languedoc |
58,018 |
2010 |
7 |
|
Genco
Pyrenees |
58,018 |
2010 |
8 |
|
Genco
Bourgogne |
58,018 |
2010 |
9 |
|
Genco
Aquitaine |
57,981 |
2009 |
10 |
|
Genco Warrior |
55,435 |
2005 |
11 |
|
Genco Predator |
55,407 |
2005 |
12 |
|
Genco
Provence |
55,317 |
2004 |
13 |
|
Genco
Picardy |
55,257 |
2005 |
14 |
|
Genco
Normandy |
53,596 |
2007 |
15 |
|
Baltic
Jaguar |
53,474 |
2009 |
16 |
|
Baltic
Leopard |
53,447 |
2009 |
17 |
|
Baltic
Cougar |
53,432 |
2009 |
18 |
|
Genco
Loire |
53,430 |
2009 |
19 |
|
Genco
Lorraine |
53,417 |
2009 |
20 |
|
Baltic
Panther |
53,351 |
2009 |
Handysize |
|
|
1 |
|
Genco Spirit |
34,432 |
2011 |
2 |
|
Genco Mare |
34,428 |
2011 |
3 |
|
Genco Ocean |
34,409 |
2010 |
4 |
|
Baltic
Wind |
34,409 |
2009 |
5 |
|
Baltic
Cove |
34,403 |
2010 |
6 |
|
Genco Avra |
34,391 |
2011 |
7 |
|
Baltic
Breeze |
34,386 |
2010 |
8 |
|
Genco Bay |
34,296 |
2010 |
9 |
|
Baltic
Hare |
31,887 |
2009 |
10 |
|
Baltic
Fox |
31,883 |
2010 |
11 |
|
Genco Champion |
28,445 |
2006 |
12 |
|
Genco Challenger |
28,428 |
2003 |
13 |
|
Genco
Charger |
28,398 |
2005 |
Conference Call Announcement
Genco Shipping & Trading Limited will hold a
conference call on Tuesday, March 5, 2019 at 10:00 a.m. Eastern
Time to discuss its 2018 fourth quarter financial results. The
conference call and a presentation will be simultaneously webcast
and will be available on the Company’s website,
www.GencoShipping.com. To access the conference call, dial (334)
323-0522 or (877) 260-1479 and enter passcode 6651935. A replay of
the conference call can also be accessed for two weeks by dialing
(888) 203-1112 or (719) 457-0820 and entering the passcode 6651935.
The Company intends to place additional materials related to the
earnings announcement, including a slide presentation, on its
website prior to the conference call.
Website Information
We intend to use our website,
www.GencoShipping.com, as a means of disclosing material non-public
information and for complying with our disclosure obligations under
Regulation FD. Such disclosures will be included in our website’s
Investor Relations section. Accordingly, investors should monitor
the Investor Relations portion of our website, in addition to
following our press releases, SEC filings, public conference calls,
and webcasts. To subscribe to our e-mail alert service, please
click the “Receive E-mail Alerts” link in the Investor Relations
section of our website and submit your email address. The
information contained in, or that may be accessed through, our
website is not incorporated by reference into or a part of this
document or any other report or document we file with or furnish to
the SEC, and any references to our website are intended to be
inactive textual references only.
"Safe Harbor" Statement Under the
Private Securities Litigation Reform Act of 1995
This presentation contains forward-looking
statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements use words such as “anticipate,”
“budget,” “estimate,” “expect,” “project,” “intend,” “plan,”
“believe,” and other words and terms of similar meaning in
connection with a discussion of potential future events,
circumstances or future operating or financial performance. These
forward-looking statements are based on management’s current
expectations and observations. Included among the factors that, in
our view, could cause actual results to differ materially from the
forward looking statements contained in this report are the
following: (i) declines or sustained weakness in demand in the
drybulk shipping industry; (ii) continuation of weakness or
declines in drybulk shipping rates; (iii) changes in the supply of
or demand for drybulk products, generally or in particular regions;
(iv) changes in the supply of drybulk carriers including
newbuilding of vessels or lower than anticipated scrapping of older
vessels; (v) changes in rules and regulations applicable to the
cargo industry, including, without limitation, legislation adopted
by international organizations or by individual countries and
actions taken by regulatory authorities; (vi) increases in costs
and expenses including but not limited to: crew wages, insurance,
provisions, lube, oil, bunkers, repairs, maintenance and general,
administrative, and management fee expenses; (vii) whether our
insurance arrangements are adequate; (viii) changes in general
domestic and international political conditions; (ix) acts of war,
terrorism, or piracy; (x) changes in the condition of the Company’s
vessels or applicable maintenance or regulatory standards (which
may affect, among other things, our anticipated drydocking or
maintenance and repair costs) and unanticipated drydock
expenditures; (xi) the Company’s acquisition or disposition of
vessels; (xii) the amount of offhire time needed to complete
repairs on vessels and the timing and amount of any reimbursement
by our insurance carriers for insurance claims, including offhire
days; (xiii) the completion of definitive documentation with
respect to charters; (xiv) charterers’ compliance with the terms of
their charters in the current market environment; (xv) the extent
to which our operating results continue to be affected by weakness
in market conditions and charter rates; (xvi) our ability to
maintain contracts that are critical to our operation, to obtain
and maintain acceptable terms with our vendors, customers and
service providers and to retain key executives, managers and
employees; (xvii) the completion of documentation for vessel
transactions and the performance of the terms thereof by buyers or
sellers of vessels and us; (xviii) the terms of definitive
documentation for the purchase and installation of scrubbers and
our ability to have scrubbers installed within the price range and
time frame anticipated; (xix) our ability to obtain any additional
financing we may seek for scrubbers on acceptable terms; (xx) the
relative cost and availability of low sulfur and high sulfur fuel
or any additional scrubbers we may seek to install; (xxi) our
ability to realize the economic benefits or recover the cost of the
scrubbers we plan to install; (xxii) worldwide compliance with IMO
2020 regulations and other factors listed from time to time in our
public filings with the Securities and Exchange Commission
including, without limitation, the Company’s Annual Report on Form
10-K for the year ended December 31, 2017 and our subsequent
reports on Form 10-Q and Form 8-K. Our ability to pay dividends in
any period will depend upon various factors, including the
limitations under any credit agreements to which we may be a party,
applicable provisions of Marshall Islands law and the final
determination by the Board of Directors each quarter after its
review of our financial performance. The timing and amount of
dividends, if any, could also be affected by factors affecting cash
flows, results of operations, required capital expenditures, or
reserves. As a result, the amount of dividends actually paid
may vary. We do not undertake any obligation to update or
revise any forward‑looking statements, whether as a result of new
information, future events or otherwise.
CONTACT:Apostolos ZafoliasChief
Financial OfficerGenco Shipping & Trading Limited(646)
443-8550
Genco Shipping and Trading (NYSE:GNK)
Historical Stock Chart
From Mar 2024 to Apr 2024
Genco Shipping and Trading (NYSE:GNK)
Historical Stock Chart
From Apr 2023 to Apr 2024