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, 2019.
The following financial review discusses the
results for the three and twelve months ended December 31, 2019 and
December 31, 2018.
Fourth Quarter 2019 and
Year-to-Date Highlights
- Announced a regular quarterly cash dividend of $0.175 per share
for the fourth quarter of 2019 -- Payable on or about March
16, 2020 to all shareholders of record as of March 6, 2020
- Completed our exhaust gas cleaning systems (“scrubbers”)
installation program for our 17 Capesize vessels
- Recorded net income of $0.9 million for the fourth quarter of
2019 -- Basic and diluted earnings per share of
$0.02 -- Adjusted net income of $3.0 million or basic and
diluted earnings per share of $0.07, excluding $1.3 million in
non-cash vessel impairment charges and a $0.8 million loss on sale
of vessels
- Recorded adjusted EBITDA of $27.9 million during Q4 20191
- In Q4 2019 and the year-to-date, we have completed the sale of
our three oldest Handysize vessels, as well as one of our two
remaining Panamaxes -- Genco Challenger, 2003-built
Handysize, delivered to buyers on October 10,
2019 -- Genco Champion, 2006-built Handysize, delivered
to buyers on October 21, 2019 -- Genco Raptor, 2007-built
Panamax, delivered to buyers on December 11,
2019 -- Genco Charger, 2005-built Handysize, delivered to
buyers on February 24, 2020 -- We have also agreed to
sell the Genco Thunder, 2007-built Panamax, which is expected to be
delivered to buyers in Q1 2020
John C. Wobensmith, Chief Executive Officer,
commented, “During 2019, we executed several key initiatives to
further strengthen Genco’s drybulk platform, enhance the fleet’s
earnings power and return capital to shareholders. Specifically, we
implemented a regular quarterly cash dividend policy as a part of
our broader capital allocation strategy, highlighting Genco’s solid
balance sheet, strong liquidity position and compelling long-term
prospects. Including a one-time special dividend, we have now
declared total dividends of $0.675 per share over the past two
quarters. Despite an unprecedented period of disruption at
shipyards in the Far East, we are pleased to have completed our 17
Capesize vessel scrubber program on time, which is a testament to
the hard work and dedication of our entire team. Importantly, we
have complied with IMO 2020 regulations in a manner that
significantly reduces sulfur emissions and improves air quality,
while enabling Genco to capitalize on higher rates for
scrubber-installed Capesize vessels. During the year, we also took
steps to continue to optimize our asset base through the sale of
older, less fuel-efficient vessels, creating a more modern and
focused fleet that closely aligns with the strengths of our active
commercial strategy.”
Mr. Wobensmith continued, “We are currently
experiencing a short-term, seasonal decline in overall drybulk
freight rates, which has been further impacted by the onset of the
Covid-19 novel coronavirus. In anticipation of the seasonal freight
rate pullback in the first quarter, we have fixed vessel
revenues for a portion of the quarter, providing Genco with a
degree of insulation from current market conditions. As the year
progresses, we expect our strong liquidity position and industry
leading balance sheet will continue to serve us well. With a
sizeable, diverse fleet and leading drybulk platform, we believe we
are well positioned to take advantage of an expected increase in
demand for both major and minor bulk commodities once current
market pressures subside, against a backdrop of low net fleet
growth.”
1 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.
Completion of our Scrubber
Installation Program
In January 2020, we completed our exhaust gas
cleaning systems (“scrubbers”) program which consisted of
installing scrubbers on Genco’s 17 Capesize vessels. This
represents a key pillar of our previously announced comprehensive
plan towards compliance with International Maritime Organization
(“IMO”) regulations that limit sulfur emissions from vessels to
0.5% down from 3.5% on a global basis to improve air quality.
Specifically, given the timely nature of our
scrubber retrofits on our Capesize vessels, we have been able to
capture the differentials between compliant and high sulfur fuel so
far in the early stages of compliance, significantly de-risking the
initial investment. With no scheduled drydockings for our Capesize
vessels for the balance of 2020, we plan to maximize utilization
for these vessels while re-implementing our active chartering
approach. As such, we strategically repositioned select Capesize
vessels after the completion of their scrubber installations
towards the Atlantic Basin during the end of 2019 and beginning of
2020 to better capture market fundamentals.
In addition to the installation of scrubbers on
our 17 Capesize vessels, the balance of our fleet consisting of
minor bulk vessels is consuming ultra-low sulfur compliant
fuel.
|
|
|
|
|
|
|
| |
Timing of Scrubber Installations (Number of
Vessels) |
|
| |
Scrubbers Installed By: |
Scrubbers Installed (Cumulative) |
Capesize Fleet |
Completion Rate |
|
| |
September 30, 2019 |
8 |
17 |
47% |
|
| |
December 31, 2019 |
16 |
17 |
94% |
|
| |
January 17, 2020 |
17 |
17 |
100% |
|
| |
|
|
|
|
|
With our entire Capesize fleet of 17 vessels entering the
shipyard last year for scrubber fitting in addition to any
scheduled special surveys and ballast water treatment system
installations, 2019 represented a year of substantial capital
expenditure for this core portion of our fleet. This also limited
our commercial trading capabilities in the short-term. This
resulted in our Capesize fleet trading in the Pacific basin, a
region that saw rates trade at a discount to the Atlantic basin,
notwithstanding our long-term commercial strategy that utilizes a
more dynamic approach to vessel positioning to better capture
market fundamentals. We view this as an investment in our Capesize
fleet as we look to maximize Capesize utilization in 2020, since we
will have no scheduled drydockings for these vessels, positioning
Genco to capture market upside potential going forward.
In the early stages of compliance in Q1 2020 to
date, we are experiencing the economic benefits of the differential
between high sulfur fuel (“HSFO”) and very low sulfur fuel
(“VLSFO”). According to Platts, the quoted fuel spread in the
year-to-date is approximately $255 per ton which equates to an
estimated TCE of $7,000 to $9,000 per day on a Capesize vessel
depending on sailing days and daily fuel consumption. In an effort
to increase TCEs over the longer term, from time-to-time we ballast
select vessels from the Pacific to the Atlantic.
Based on current fixtures to date, we estimate
the following to be our TCE to date for the first quarter of
2020.
- Capesize: $17,080 for 78% of the owned available Q1 2020
days
- Ultramax and Supramax: $8,654 for 81% of the owned available Q1
2020 days
- Handysize: $6,796 for 75% of the owned available Q1 2020
days
- Fleet average: $10,938 for 79% of the owned available Q1 2020
days
Regular Quarterly Cash Dividend
Policy
For the fourth quarter of 2019, Genco declared a
regular quarterly cash dividend of $0.175 per share, utilizing its
industry leading balance sheet to return cash to shareholders. This
dividend is payable on or about March 16, 2020, to all shareholders
of record as of March 6, 2020.
Management and the Board of Directors took into
account several considerations with regard to the declaration of a
quarterly dividend. These include Genco’s solid balance sheet and
strong liquidity position as well as positive long-term drybulk
market fundamentals. Following the payment of the fourth quarter
dividend, Genco expects to continue to have one of the lowest net
leverage positions among its peer group.
Dividends going forward remain subject to
approval of our Board of Directors each quarter after its review of
our financial performance and will depend upon various factors,
including limitations under our credit agreements and applicable
provisions of Marshall Islands law.
For U.S. federal income tax purposes, we
currently estimate that the recently declared quarterly dividend
will first be treated as a nontaxable return of capital to
stockholders to the extent of their basis in our common stock and
then as capital gain, although the tax treatment of the dividends
will be based in part on our earnings and profits for the year
ending December 31, 2019, which will not be determined until after
the end of this year. For further details, please refer to our
current report on Form 8-K filed with the U.S. Securities and
Exchange Commission on November 11, 2019.
Financial Review: 2019 Fourth
Quarter
The Company recorded net income for the fourth
quarter of 2019 of $0.9 million, or $0.02 basic and diluted net
earnings per share. Comparatively, for the three months ended
December 31, 2018, the Company recorded net income of $18.3
million, or $0.44 basic and diluted net earnings per share.
The Company’s revenues decreased to $108.7
million for the three months ended December 31, 2019, as compared
to the $112.2 million recorded for the three months ended December
31, 2018. The decrease in revenues was primarily due to the effect
of trading our Capesize vessels primarily in the Pacific basin and
offhire related to scrubber installations, ballast water treatment
system installations and special surveys as noted above. The
average daily time charter equivalent, or TCE, rates obtained by
the Company’s fleet was $12,619 per day for the three months ended
December 31, 2019 as compared to $13,237 per day for the three
months ended December 31, 2018. In the second half of 2019, the
drybulk market improved significantly, reaching multi-year highs in
the process. Specifically, the Baltic Capesize Index was supported
by record steel production in China and increased Brazilian iron
ore shipments under a backdrop of constrained vessel capacity due
to the global fleet’s preparation ahead of IMO 2020. Subsequently,
during the first quarter of 2020, the market has come under
significant pressure due to seasonal factors including increased
newbuilding deliveries, the timing of the Lunar New Year in China
and weather-related cargo disruptions primarily in Brazil and
Australia. These seasonal factors have been accentuated by the
onset of the Covid-19 novel coronavirus. The coronavirus has
impacted industrial activity with temporary closures of factories
and other facilities leading to lower demand for some of the
cargoes we carry, including iron ore and coal. The duration and
impact of the coronavirus epidemic will depend on future
developments, which are uncertain and cannot be predicted,
including the severity of the coronavirus and actions to contain
the coronavirus or treat its impact.
Total operating expenses were $101.1 million for
the three months ended December 31, 2019 compared to $86.2 million
for the three months ended December 31, 2018. During the three
months ended December 31, 2019, the company recorded $1.3 million
in non-cash impairment charges as well as a $0.8 million loss on
sale of vessels. During the three months ended December 31, 2018, a
$2.0 million gain on sale of vessels was recorded. Voyage expenses
rose to $45.3 million for the three months ended December 31, 2019
versus $36.3 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 decreased to $23.9 million for the three months
ended December 31, 2019, from $24.8 million for the three months
ended December 31, 2018 primarily due to fewer owned vessels,
partially offset by higher drydocking related expenses. General and
administrative expenses decreased to $6.3 million for the fourth
quarter of 2019 compared to $6.4 million for the fourth quarter of
2018. Depreciation and amortization expenses decreased to $18.3
million for the three months ended December 31, 2019 from $18.4
million for the three months ended December 31, 2018, primarily due
to a decrease in depreciation expense for the five vessels that
were impaired during 2019. Depreciation expenses also increased for
vessels that completed their drydocking and installations for
ballast water treatment systems and scrubbers.
Daily vessel operating expenses, or DVOE,
amounted to $4,640 per vessel per day for the fourth quarter of
2019 compared to $4,336 per vessel per day for the fourth quarter
of 2018. The increase in DVOE was predominantly due to higher
drydocking 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, our DVOE budget
for 2020 is $4,590.
Apostolos Zafolias, Chief Financial Officer,
commented, “We ended 2019 by returning to profitability during the
fourth quarter. Our success generating adjusted EBITDA of
$27.9 million has further solidified our industry leading balance
sheet. With the busiest drydocking year in Company history behind
us and our Capesize fleet fully scrubber-fitted, we plan to
maximize fleet-wide utilization and our earnings potential. We are
pleased to have closed the year with over $160 million of
cash, highlighting Genco's balance sheet strength. This was
achieved during a year that marked the highest capex period in our
history and a return of $0.50 per share in dividends.”
Financial Review: Twelve Months
2019
The Company recorded a net loss of $56.0 million
or $1.34 basic and diluted net loss per share for the twelve months
ended December 31, 2019. This compares to 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. Net loss for the twelve
months ended December 31, 2019 includes $27.4 million in non-cash
vessel impairment charges, a $0.2 million non-cash impairment of
the operating lease right-of-use asset, as well as a loss on sale
of vessels totaling $0.2 million. Net loss for the twelve months
ended December 31, 2018, includes non-cash vessel impairment
charges of $56.6 million, a $3.5 million gain on sale of vessels as
well as a loss on debt extinguishment in the amount of $4.5
million. Revenues increased to $389.5 million for the twelve months
ended December 31, 2019 compared to $367.5 million for the twelve
months ended December 31, 2018 primarily due to increased
employment of vessels on spot market voyage charters, partially
offset by the effect of trading our Capesize vessels primarily in
the Pacific basin and offhire related to scrubber installations,
ballast water treatment system installations and special surveys as
noted above during the fourth quarter of 2019. Voyage expenses
increased to $173.0 million for the twelve months ended December
31, 2019 from $114.9 million for the same period in 2018.
This was primarily due to the increase of employment of vessels on
spot market voyage charters during 2019 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 decreased to
$10,182 per day for the twelve months ended December 31, 2019 from
$11,364 per day for the twelve months ended December 31, 2018, due
to lower rates achieved by the majority of the vessels in our
fleet. Total operating expenses for the twelve months ended
December 31, 2019 and 2018 were $417.9 million and $367.0 million,
respectively. Total operating expenses include $27.4 million in
non-cash vessel impairment charges, as well as a loss on sale of
vessels of $0.2 million for the twelve months ending December 31,
2019. For the twelve months ended December 31, 2018, 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 as
well as a gain on the sale of vessels of $3.5 million. General and
administrative expenses for the twelve months ended December 31,
2019 increased to $24.5 million as compared to the $23.1 million in
the same period of 2018, due to an increase in compensation related
expenses. DVOE was $4,576 versus $4,379 in 2018. The increase in
DVOE was predominantly due to higher drydocking related expenses
and lubricant expenses. EBITDA for the twelve months ended December
31, 2019 amounted to $44.7 million compared to $65.3 million during
the prior period. During the twelve months of 2019 and 2018, EBITDA
included non-cash impairment charges, an operating lease
right-of-use asset non-cash impairment, gains and losses on sale of
vessels, and loss on debt extinguishment as mentioned above.
Excluding these items, our adjusted EBITDA would have amounted to
$72.5 million and $122.9 million, for the respective periods.
Liquidity and Capital
Resources
Cash Flow
Net cash provided by operating activities for
the year ended December 31, 2019 was $59.5 million as compared to
$65.9 million for the year ended December 31, 2018. Included
in the net loss during the year ended December 31, 2019 were $27.4
million of non-cash impairment charges, $0.2 million net loss
arising from the sale of four vessels, $1.2 million of non-cash
lease expense and a loss of $0.2 million related to the non-cash
impairment of our right-of-use operating lease asset.
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. Depreciation
and amortization expense for the year ended December 31, 2019
increased by $3.8 million primarily due to depreciation expense for
the six vessels delivered during the third quarter of 2018,
partially offset by a decrease in depreciation expense for the
eleven vessels that were sold during the second half of 2018 and
2019. Additionally, there was an $18.7 million increase in
the fluctuation in due from charterers due to the timing of
payments received from charterers and a $5.8 million increase in
the fluctuation in prepaid expenses and other current assets due to
the timing of payments. There was also a $16.6 million
increase in the fluctuation in inventories primarily associated
with vessels on spot market voyage charters. Lastly,
there was a $10.6 million increase in the fluctuation of accounts
payable and accrued expenses due to the timing of payments
made. These increases were partially offset by a $12.4
million increase in deferred drydocking costs as there
were more vessels that completed drydocking during 2019 as
compared to 2018.
Net cash used in investing activities was $22.8
million and $195.4 million during the years ended December 31, 2019
and 2018, respectively. Net cash used in investing activities
during the year ended December 31, 2019 consisted primarily of
$31.8 million purchase of scrubbers for our vessels, $14.0 million
purchase of vessels related primarily to ballast water treatment
systems and $4.7 million for the purchase of other fixed assets due
to the purchase of vessel equipment. These cash outflows
during the year ended December 31, 2019 were partially offset by
$27.0 million of proceeds from the sale of four vessels during
2019. 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 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 used in financing activities during the
year ended December 31, 2019 was $77.2 million as compared to net
cash provided by financing activities of $127.3 million during the
year ended December 31, 2018. Net cash used in financing
activities of $77.2 million for the year ended December 31, 2019
consisted primarily of the following: $70.8 million
repayment of debt under the $495 Million Credit Facility; $20.9
million of dividends paid; $6.3 million repayment of debt under the
$108 Million Credit Facility; $0.6 million payment of deferred
financing costs; and $0.1 million payment of common stock issuance
costs. These cash outflows were partially offset by total
drawdowns of $21.5 million under the $495 Million Credit Facility
during the year ended December 31, 2019. Net cash provided by
financing activities of $127.3 million during 2018 consisted
primarily of the $460.0 million drawdown on the $495 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 $495 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 June 5, 2018, the $495
Million Credit Facility refinanced the following three existing
credit facilities with its original $460 million tranche; the $400
Million Credit Facility, the $98 Million Credit Facility and the
2014 Term Loan Facilities. Additionally, on February 28,
2019, the $495 Million Credit Facility was amended to add a tranche
of $35 million for the purchase of scrubbers in addition to the
original $460 million tranche used for the refinancing on June 5,
2018.
Capital Expenditures
We make capital expenditures from time to time
in connection with vessel acquisitions. As of February 25, 2020,
Genco Shipping & Trading Limited’s fleet consists of 17
Capesize, one Panamax, six Ultramax, 20 Supramax and 10 Handysize
vessels with an aggregate capacity of approximately 4,914,000 dwt
and an average age of 9.7 years.
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.
Through December 31, 2019, we have paid $31.8 million in cash
installments towards our scrubber program and have drawn down $21.5
million under the scrubber tranche under our $495 Million Credit
Facility. While we completed 16 scrubber retrofits before year-end,
due to the timing of cash flows, we have approximately $9.5 million
relating to our scrubber program currently recorded in accounts
payable as of December 31, 2019, which we plan to pay in 2020, as
well as any residual costs incurred during the first quarter of
2020. We also plan to draw down the remaining capacity under our
scrubber facility of approximately $11 million to fund these
remaining cash outflows.
2019 marked our busiest year of drydocking in
the history of the Company. We had 30 vessels enter the shipyard
for scrubber installations, ballast water treatment system
installations, scheduled special surveys and other repairs. Of
these vessels, 29 vessels completed their respective drydockings in
2019. One vessel began its drydocking during the fourth quarter and
did not complete until the first quarter of 2020. In addition to
this vessel, we estimate that 16 additional vessels will be
drydocked during the 2020.
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 for 2020 to be:
| |
Q1 2020 |
Q2 2020 |
Q3 2020 |
Q4 2020 |
| Estimated Drydock Costs (1) |
$4.3 million |
$6.2 million |
$1.4 million |
- |
| Estimated BWTS Costs (2) |
$1.2 million |
$2.9 million |
$0.4 million |
- |
| Estimated Offhire Days (3) |
136 |
170 |
40 |
- |
| |
|
|
|
|
(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. (2) Estimated costs associated with the
installation of ballast water treatment systems is expected to be
funded with cash on hand. (3) Actual length will vary based on the
condition of the vessel, yard schedules and other factors.
Fleet
Update
We continue to divest our older, less efficient
tonnage as part of our efforts to modernize our fleet and create a
more focused asset base while reducing our carbon footprint. In the
fourth quarter of 2019, we completed the sales of two Handysize
vessels and one Panamax vessel. Specifically, we sold the Genco
Challenger, a 2003-built Handysize vessel, on October 10, 2019, the
Genco Champion, a 2006-built Handysize vessel, on October 21, 2019,
for gross prices of $5.3 million and $6.6 million, respectively.
Following these two sales, we paid down associated debt of $6.9
million in aggregate.
Also in Q4 2019, we delivered the Genco Raptor,
a 2007-built Panamax vessel, to buyers on December 11, 2019 at a
gross price of $10.2 million. Furthermore, in the first quarter of
2020, we sold the Genco Charger, a 2005-built Handysize, on
February 24, 2020 for a gross price of $5.2 million.
We have also agreed to sell the Genco Thunder, a
2007-built Panamax which we expect to deliver to buyers in Q1 2020.
Following the completion of this sale, the Company will have fully
exited the Panamax sector as we continue to execute our barbell
approach to fleet composition and create a more focused fleet.
The Company has determined to expand its
previously announced fleet optimization and renewal plan aimed at
modernizing its fleet. In addition to the fifteen original
vessels designated to be sold under this plan, the Company has
determined to pursue the sale of ten Handysize vessels that were
not already part of the plan and are viewed as non-core
vessels within our fleet. This is consistent with our focus on
implementing our barbell approach towards fleet composition
primarily weighted towards Capesize and Ultramax/Supramax vessels.
Given this decision, as the estimated future undiscounted cash
flows for each of these vessels did not exceed their net book
values, we will be adjusting the values of these vessels to their
respective fair market values during the first quarter of 2020.
We therefore anticipate a non-cash impairment charge in the
range of $79 million to $85 million in the first quarter of 2020,
in addition to any potential impairments that may occur as part of
our on-going vessel impairment testing. If and when we sell each of
these vessels, we will determine how to deploy the net proceeds,
which may include repayment of debt, the purchase of modern, high
specification vessels that complement our commercial strategy and
management’s view of drybulk supply and demand fundamentals, and
dividends and share
repurchases.
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 Ended December 31, 2019 |
|
Three Months Ended December 31, 2018 |
|
Twelve Months Ended December 31, 2019 |
|
Twelve Months Ended December 31, 2018 |
|
| |
|
|
|
(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 |
$ |
108,705 |
|
|
$ |
112,185 |
|
|
$ |
389,496 |
|
|
$ |
367,522 |
|
|
|
|
|
Total revenues |
|
108,705 |
|
|
|
112,185 |
|
|
|
389,496 |
|
|
|
367,522 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Operating
expenses: |
|
|
|
|
|
|
|
|
| |
Voyage
expenses |
|
45,254 |
|
|
|
36,305 |
|
|
|
173,043 |
|
|
|
114,855 |
|
|
| |
Vessel operating
expenses |
|
23,949 |
|
|
|
24,785 |
|
|
|
96,209 |
|
|
|
97,427 |
|
|
| |
Charter hire
expenses |
|
3,436 |
|
|
|
302 |
|
|
|
16,179 |
|
|
|
1,534 |
|
|
| |
General
and administrative expenses (inclusive of nonvested stock
amortization |
|
6,263 |
|
|
|
6,380 |
|
|
|
24,516 |
|
|
|
23,141 |
|
|
| |
expense
of $0.5 million, $0.5 million, $2.1 million and $2.2 million,
respectively) |
|
|
|
|
|
|
|
|
| |
Technical
management fees |
|
1,857 |
|
|
|
2,075 |
|
|
|
7,567 |
|
|
|
8,000 |
|
|
| |
Depreciation and
amortization |
|
18,292 |
|
|
|
18,370 |
|
|
|
72,824 |
|
|
|
68,976 |
|
|
| |
Impairment of
vessel assets |
|
1,315 |
|
|
|
- |
|
|
|
27,393 |
|
|
|
56,586 |
|
|
| |
Loss (gain) on
sale of vessels |
|
779 |
|
|
|
(2,004 |
) |
|
|
168 |
|
|
|
(3,513 |
) |
|
| |
|
Total operating
expenses |
|
101,145 |
|
|
|
86,213 |
|
|
|
417,899 |
|
|
|
367,006 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Operating income
(loss) |
|
7,560 |
|
|
|
25,972 |
|
|
|
(28,403 |
) |
|
|
516 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Other (expense)
income: |
|
|
|
|
|
|
|
|
| |
Other (expense)
income |
|
(22 |
) |
|
|
95 |
|
|
|
501 |
|
|
|
367 |
|
|
| |
Interest
income |
|
803 |
|
|
|
1,058 |
|
|
|
4,095 |
|
|
|
3,801 |
|
|
| |
Interest
expense |
|
(7,459 |
) |
|
|
(8,842 |
) |
|
|
(31,955 |
) |
|
|
(33,091 |
) |
|
| |
Impairment of
right-of-use asset |
|
- |
|
|
|
- |
|
|
|
(223 |
) |
|
|
- |
|
|
| |
Loss on debt
extinguishment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,533 |
) |
|
| |
|
Other expense |
|
(6,678 |
) |
|
|
(7,689 |
) |
|
|
(27,582 |
) |
|
|
(33,456 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net income
(loss) |
$ |
882 |
|
|
$ |
18,283 |
|
|
$ |
(55,985 |
) |
|
$ |
(32,940 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net earnings
(loss) per share - basic |
$ |
0.02 |
|
|
$ |
0.44 |
|
|
$ |
(1.34 |
) |
|
$ |
(0.86 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net earnings
(loss) per share - diluted |
$ |
0.02 |
|
|
$ |
0.44 |
|
|
$ |
(1.34 |
) |
|
$ |
(0.86 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Weighted average
common shares outstanding - basic |
|
41,832,942 |
|
|
|
41,704,296 |
|
|
|
41,762,893 |
|
|
|
38,382,599 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Weighted average
common shares outstanding - diluted |
|
41,989,553 |
|
|
|
41,792,956 |
|
|
|
41,762,893 |
|
|
|
38,382,599 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
December 31, 2019 |
|
December 31, 2018 |
|
|
| BALANCE
SHEET DATA (Dollars in thousands): |
|
|
(unaudited) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
| |
Current
assets: |
|
|
|
|
|
|
|
| |
|
Cash and cash
equivalents |
|
|
$ |
155,889 |
|
|
$ |
197,499 |
|
|
|
| |
|
Restricted
cash |
|
|
|
6,045 |
|
|
|
4,947 |
|
|
|
| |
|
Due from
charterers, net |
|
|
|
13,701 |
|
|
|
22,306 |
|
|
|
| |
|
Prepaid expenses
and other current assets |
|
|
|
10,049 |
|
|
|
10,449 |
|
|
|
| |
|
Inventories |
|
|
|
27,208 |
|
|
|
29,548 |
|
|
|
| |
|
Vessels held for
sale |
|
|
|
10,303 |
|
|
|
5,702 |
|
|
|
| |
Total current
assets |
|
|
|
223,195 |
|
|
|
270,451 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Noncurrent
assets: |
|
|
|
|
|
|
|
| |
|
Vessels, net of
accumulated depreciation of $288,373 and $244,529,
respectively |
|
|
|
1,273,861 |
|
|
|
1,344,870 |
|
|
|
| |
|
Deferred drydock,
net |
|
|
|
17,304 |
|
|
|
9,544 |
|
|
|
| |
|
Fixed assets,
net |
|
|
|
5,976 |
|
|
|
2,290 |
|
|
|
| |
|
Operating lease
right-of-use assets |
|
|
|
8,241 |
|
|
|
- |
|
|
|
| |
|
Restricted
cash |
|
|
|
315 |
|
|
|
315 |
|
|
|
| |
Total noncurrent
assets |
|
|
|
1,305,697 |
|
|
|
1,357,019 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Total assets |
|
|
$ |
1,528,892 |
|
|
$ |
1,627,470 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
| |
Current
liabilities: |
|
|
|
|
|
|
|
| |
|
Accounts payable
and accrued expenses |
|
|
$ |
49,604 |
|
|
$ |
29,143 |
|
|
|
| |
|
Current portion of
long-term debt |
|
|
|
69,747 |
|
|
|
66,320 |
|
|
|
| |
|
Deferred
revenue |
|
|
|
6,627 |
|
|
|
6,404 |
|
|
|
| |
|
Current operating
lease liabilities |
|
|
|
1,677 |
|
|
|
- |
|
|
|
| |
Total current
liabilities |
|
|
|
127,655 |
|
|
|
101,867 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Noncurrent
liabilities |
|
|
|
|
|
|
|
| |
|
Long-term
operating lease liabilities |
|
|
|
9,826 |
|
|
|
- |
|
|
|
| |
|
Deferred rent |
|
|
|
- |
|
|
|
3,468 |
|
|
|
| |
|
Long-term debt,
net of deferred financing costs of $13,094 and $16,272,
respectively |
|
|
|
412,983 |
|
|
|
468,828 |
|
|
|
| |
Total noncurrent
liabilities |
|
|
|
422,809 |
|
|
|
472,296 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Total
liabilities |
|
|
|
550,464 |
|
|
|
574,163 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Commitments and
contingencies |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Equity: |
|
|
|
|
|
|
|
| |
|
Common stock |
|
|
|
417 |
|
|
|
416 |
|
|
|
| |
|
Additional paid-in
capital |
|
|
|
1,721,268 |
|
|
|
1,740,163 |
|
|
|
| |
|
Retained
deficit |
|
|
|
(743,257 |
) |
|
|
(687,272 |
) |
|
|
| |
|
Total equity |
|
|
|
978,428 |
|
|
|
1,053,307 |
|
|
|
| |
Total liabilities
and equity |
|
|
$ |
1,528,892 |
|
|
$ |
1,627,470 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
Twelve Months Ended December 31, 2019 |
|
Twelve Months Ended December 31, 2018 |
|
|
| STATEMENT
OF CASH FLOWS (Dollars in thousands): |
|
|
(unaudited) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Cash flows
from operating activities |
|
|
|
|
|
|
|
| |
|
Net loss |
|
|
$ |
(55,985 |
) |
|
$ |
(32,940 |
) |
|
|
| |
|
Adjustments to
reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
|
|
|
| |
|
Depreciation and
amortization |
|
|
|
72,824 |
|
|
|
68,976 |
|
|
|
| |
|
Amortization of
deferred financing costs |
|
|
|
3,788 |
|
|
|
3,035 |
|
|
|
| |
|
Payment of PIK
interest |
|
|
|
- |
|
|
|
(5,341 |
) |
|
|
| |
|
Noncash operating
lease expense |
|
|
|
1,246 |
|
|
|
- |
|
|
|
| |
|
Amortization of
nonvested stock compensation expense |
|
|
|
2,057 |
|
|
|
2,231 |
|
|
|
| |
|
Impairment of
right-of-use asset |
|
|
|
223 |
|
|
|
- |
|
|
|
| |
|
Impairment of
vessel assets |
|
|
|
27,393 |
|
|
|
56,586 |
|
|
|
| |
|
Loss (gain) on
sale of vessels |
|
|
|
168 |
|
|
|
(3,513 |
) |
|
|
| |
|
Loss on debt
extinguishment |
|
|
|
- |
|
|
|
4,533 |
|
|
|
| |
|
Insurance proceeds
for protection and indemnity claims |
|
|
|
494 |
|
|
|
303 |
|
|
|
| |
|
Insurance proceeds
for loss of hire claims |
|
|
|
- |
|
|
|
58 |
|
|
|
| |
|
Change in assets
and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Decrease (increase) in due from charterers |
|
|
|
8,605 |
|
|
|
(10,099 |
) |
|
|
| |
|
|
Increase in prepaid expenses
and other current assets |
|
|
|
(789 |
) |
|
|
(6,626 |
) |
|
|
| |
|
|
Decrease (increase) in
inventories |
|
|
|
2,340 |
|
|
|
(14,215 |
) |
|
|
| |
|
|
Decrease in other noncurrent
assets |
|
|
|
- |
|
|
|
514 |
|
|
|
| |
|
|
Increase in accounts payable
and accrued expenses |
|
|
|
13,172 |
|
|
|
2,571 |
|
|
|
| |
|
|
Increase in deferred
revenue |
|
|
|
223 |
|
|
|
1,190 |
|
|
|
| |
|
|
Decrease in operating lease
liabilities |
|
|
|
(1,592 |
) |
|
|
- |
|
|
|
| |
|
|
Increase in deferred rent |
|
|
|
- |
|
|
|
880 |
|
|
|
| |
|
|
Deferred drydock costs
incurred |
|
|
|
(14,641 |
) |
|
|
(2,236 |
) |
|
|
| |
|
Net cash provided
by operating activities |
|
|
|
59,526 |
|
|
|
65,907 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Cash flows
from investing activities |
|
|
|
|
|
|
|
| |
|
Purchase of
vessels and ballast water treatment systems, including
deposits |
|
|
|
(13,960 |
) |
|
|
(241,872 |
) |
|
|
| |
|
Purchase of
scrubbers (capitalized in Vessels) |
|
|
|
(31,750 |
) |
|
|
- |
|
|
|
| |
|
Purchase of other
fixed assets |
|
|
|
(4,714 |
) |
|
|
(1,462 |
) |
|
|
| |
|
Net proceeds from
sale of vessels |
|
|
|
26,963 |
|
|
|
44,330 |
|
|
|
| |
|
Insurance proceeds
for hull and machinery claims |
|
|
|
612 |
|
|
|
3,629 |
|
|
|
| |
|
Net cash used in
investing activities |
|
|
|
(22,849 |
) |
|
|
(195,375 |
) |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Cash flows
from financing activities |
|
|
|
|
|
|
|
| |
|
Proceeds from the
$108 Million Credit Facility |
|
|
|
- |
|
|
|
108,000 |
|
|
|
| |
|
Repayments on the
$108 Million Credit Facility |
|
|
|
(6,320 |
) |
|
|
(1,580 |
) |
|
|
| |
|
Proceeds from the
$495 Million Credit Facility |
|
|
|
21,500 |
|
|
|
460,000 |
|
|
|
| |
|
Repayments on the
$495 Million Credit Facility |
|
|
|
(70,776 |
) |
|
|
(15,000 |
) |
|
|
| |
|
Repayments on the
$400 Million Credit Facility |
|
|
|
- |
|
|
|
(399,600 |
) |
|
|
| |
|
Repayments on the
$98 Million Credit Facility |
|
|
|
- |
|
|
|
(93,939 |
) |
|
|
| |
|
Repayments on the
2014 Term Loan Facilities |
|
|
|
- |
|
|
|
(25,544 |
) |
|
|
| |
|
Payment of debt
extinguishment costs |
|
|
|
- |
|
|
|
(2,962 |
) |
|
|
| |
|
Proceeds from
issuance of common stock |
|
|
|
- |
|
|
|
110,249 |
|
|
|
| |
|
Payment of common
stock issuance costs |
|
|
|
(105 |
) |
|
|
(496 |
) |
|
|
| |
|
Cash dividends
paid |
|
|
|
(20,877 |
) |
|
|
- |
|
|
|
| |
|
Payment of
deferred financing costs |
|
|
|
(611 |
) |
|
|
(11,845 |
) |
|
|
| |
|
Net cash (used in)
provided by financing activities |
|
|
|
(77,189 |
) |
|
|
127,283 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Net decrease in
cash, cash equivalents and restricted cash |
|
|
|
(40,512 |
) |
|
|
(2,185 |
) |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Cash, cash
equivalents and restricted cash at beginning of period |
|
|
|
202,761 |
|
|
|
204,946 |
|
|
|
| Cash, cash
equivalents and restricted cash at end of period |
|
|
$ |
162,249 |
|
|
$ |
202,761 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
Three Months Ended December 31, 2019 |
|
|
| Adjusted
Net Income Reconciliation |
(unaudited) |
|
|
| Net income |
$ |
882 |
|
|
|
|
+ |
Impairment of vessel assets |
|
1,315 |
|
|
| |
+ |
Loss on sale of vessels |
|
779 |
|
|
| |
|
Adjusted net
income |
$ |
2,976 |
|
|
| |
|
|
|
|
|
| |
|
Adjusted net income per share
- basic |
$ |
0.07 |
|
|
| |
|
Adjusted net income per share
- diluted |
$ |
0.07 |
|
|
| |
|
|
|
|
|
| |
|
Weighted average common shares
outstanding - basic |
|
41,832,942 |
|
|
| |
|
Weighted average common shares
outstanding - diluted |
|
41,989,553 |
|
|
| |
|
|
|
|
|
| |
|
Weighted average common shares
outstanding - basic as per financial statements |
|
41,832,942 |
|
|
| |
|
Dilutive effect of stock
options |
|
52,252 |
|
|
| |
|
Dilutive effect of restricted
stock awards |
|
104,359 |
|
|
| |
|
Weighted average common shares
outstanding - diluted as adjusted |
|
41,989,553 |
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three Months Ended December 31, 2019 |
|
Three Months Ended December 31, 2018 |
|
Twelve Months Ended December 31, 2019 |
|
Twelve Months Ended December 31, 2018 |
|
| |
|
|
(Dollars in thousands) |
|
(Dollars in thousands) |
|
| EBITDA
Reconciliation: |
(unaudited) |
|
(unaudited) |
|
| |
Net income
(loss) |
$ |
882 |
|
|
$ |
18,283 |
|
|
$ |
(55,985 |
) |
|
$ |
(32,940 |
) |
|
|
|
+ |
Net interest expense |
|
6,656 |
|
|
|
7,784 |
|
|
|
27,860 |
|
|
|
29,290 |
|
|
| |
+ |
Depreciation and
amortization |
|
18,292 |
|
|
|
18,370 |
|
|
|
72,824 |
|
|
|
68,976 |
|
|
| |
|
EBITDA(1) |
$ |
25,830 |
|
|
$ |
44,437 |
|
|
$ |
44,699 |
|
|
$ |
65,326 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
+ |
Impairment of vessel
assets |
|
1,315 |
|
|
|
- |
|
|
|
27,393 |
|
|
|
56,586 |
|
|
| |
+ |
Impairment of right-of-use
asset |
|
- |
|
|
|
- |
|
|
|
223 |
|
|
|
- |
|
|
| |
+ |
Loss (gain) on sale of
vessels |
|
779 |
|
|
|
(2,004 |
) |
|
|
168 |
|
|
|
(3,513 |
) |
|
| |
+ |
Loss on debt
extinguishment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,533 |
|
|
| |
|
Adjusted
EBITDA |
$ |
27,924 |
|
|
$ |
42,433 |
|
|
$ |
72,483 |
|
|
$ |
122,932 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three Months Ended |
|
Twelve Months Ended |
|
| |
|
|
December 31, 2019 |
|
December 31, 2018 |
|
December 31, 2019 |
|
December 31, 2018 |
|
| FLEET
DATA: |
(unaudited) |
|
(unaudited) |
|
| Total number of
vessels at end of period |
|
55 |
|
|
|
59 |
|
|
|
55 |
|
|
|
59 |
|
|
| Average number of
vessels (2) |
|
56.1 |
|
|
|
62.1 |
|
|
|
57.6 |
|
|
|
61.0 |
|
|
| Total ownership
days for fleet (3) |
|
5,161 |
|
|
|
5,716 |
|
|
|
21,023 |
|
|
|
22,249 |
|
|
| Total chartered-in
days (4) |
|
255 |
|
|
|
19 |
|
|
|
1,326 |
|
|
|
132 |
|
|
| Total available
days for fleet (5) |
|
5,011 |
|
|
|
5,728 |
|
|
|
20,995 |
|
|
|
22,231 |
|
|
| Total available
days for owned fleet (6) |
|
4,756 |
|
|
|
5,710 |
|
|
|
19,669 |
|
|
|
22,099 |
|
|
| Total operating
days for fleet (7) |
|
4,864 |
|
|
|
5,661 |
|
|
|
20,589 |
|
|
|
21,975 |
|
|
| Fleet utilization
(8) |
|
96.4 |
% |
|
|
98.7 |
% |
|
|
97.5 |
% |
|
|
98.5 |
% |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| AVERAGE
DAILY RESULTS: |
|
|
|
|
|
|
|
|
| Time charter
equivalent (9) |
$ |
12,619 |
|
|
$ |
13,237 |
|
|
$ |
10,182 |
|
|
$ |
11,364 |
|
|
| Daily vessel
operating expenses per vessel (10) |
|
4,640 |
|
|
|
4,336 |
|
|
|
4,576 |
|
|
|
4,379 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three Months Ended |
|
Twelve Months Ended |
|
| |
|
|
December 31, 2019 |
|
December 31, 2018 |
|
December 31, 2019 |
|
December 31, 2018 |
|
| FLEET
DATA: |
(unaudited) |
|
(unaudited) |
|
| Ownership
days |
|
|
|
|
|
|
|
|
| Capesize |
|
1,564.0 |
|
|
|
1,564.0 |
|
|
|
6,205.0 |
|
|
|
5,251.5 |
|
|
| Panamax |
|
163.4 |
|
|
|
439.5 |
|
|
|
736.6 |
|
|
|
2,022.7 |
|
|
| Ultramax |
|
552.0 |
|
|
|
552.0 |
|
|
|
2,190.0 |
|
|
|
1,731.2 |
|
|
| Supramax |
|
1,840.0 |
|
|
|
1,855.4 |
|
|
|
7,300.0 |
|
|
|
7,588.4 |
|
|
| Handymax |
|
- |
|
|
|
65.4 |
|
|
|
- |
|
|
|
338.4 |
|
|
| Handysize |
|
1,041.9 |
|
|
|
1,239.2 |
|
|
|
4,590.9 |
|
|
|
5,316.4 |
|
|
| Total |
|
5,161.3 |
|
|
|
5,715.6 |
|
|
|
21,022.5 |
|
|
|
22,248.6 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Chartered-in
days |
|
|
|
|
|
|
|
|
| Capesize |
|
44.4 |
|
|
|
- |
|
|
|
227.3 |
|
|
|
- |
|
|
| Panamax |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
| Ultramax |
|
32.2 |
|
|
|
- |
|
|
|
128.5 |
|
|
|
- |
|
|
| Supramax |
|
129.4 |
|
|
|
- |
|
|
|
658.7 |
|
|
|
49.4 |
|
|
| Handymax |
|
- |
|
|
|
0.3 |
|
|
|
17.4 |
|
|
|
37.3 |
|
|
| Handysize |
|
49.1 |
|
|
|
18.2 |
|
|
|
293.9 |
|
|
|
45.8 |
|
|
| Total |
|
255.1 |
|
|
|
18.6 |
|
|
|
1,325.8 |
|
|
|
132.5 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Available days
(owned & chartered-in fleet) |
|
|
|
|
|
|
|
|
| Capesize |
|
1,315.0 |
|
|
|
1,563.7 |
|
|
|
5,573.9 |
|
|
|
5,171.7 |
|
|
| Panamax |
|
159.1 |
|
|
|
439.5 |
|
|
|
732.0 |
|
|
|
2,021.7 |
|
|
| Ultramax |
|
584.2 |
|
|
|
552.0 |
|
|
|
2,299.3 |
|
|
|
1,724.0 |
|
|
| Supramax |
|
1,861.9 |
|
|
|
1,850.2 |
|
|
|
7,547.4 |
|
|
|
7,624.4 |
|
|
| Handymax |
|
- |
|
|
|
65.8 |
|
|
|
17.4 |
|
|
|
365.7 |
|
|
| Handysize |
|
1,091.1 |
|
|
|
1,256.9 |
|
|
|
4,824.9 |
|
|
|
5,323.8 |
|
|
| Total |
|
5,011.3 |
|
|
|
5,728.1 |
|
|
|
20,994.9 |
|
|
|
22,231.3 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Available days
(owned fleet) |
|
|
|
|
|
|
|
|
| Capesize |
|
1,270.6 |
|
|
|
1,563.7 |
|
|
|
5,346.6 |
|
|
|
5,171.7 |
|
|
| Panamax |
|
159.1 |
|
|
|
439.5 |
|
|
|
732.0 |
|
|
|
2,021.7 |
|
|
| Ultramax |
|
552.0 |
|
|
|
552.0 |
|
|
|
2,170.8 |
|
|
|
1,724.0 |
|
|
| Supramax |
|
1,732.5 |
|
|
|
1,850.2 |
|
|
|
6,888.7 |
|
|
|
7,575.0 |
|
|
| Handymax |
|
- |
|
|
|
65.4 |
|
|
|
- |
|
|
|
328.4 |
|
|
| Handysize |
|
1,042.0 |
|
|
|
1,238.7 |
|
|
|
4,531.0 |
|
|
|
5,278.0 |
|
|
| Total |
|
4,756.1 |
|
|
|
5,709.5 |
|
|
|
19,669.1 |
|
|
|
22,098.8 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Operating
days |
|
|
|
|
|
|
|
|
| Capesize |
|
1,308.4 |
|
|
|
1,563.5 |
|
|
|
5,525.4 |
|
|
|
5,169.5 |
|
|
| Panamax |
|
132.1 |
|
|
|
420.9 |
|
|
|
697.0 |
|
|
|
1,970.9 |
|
|
| Ultramax |
|
568.8 |
|
|
|
549.6 |
|
|
|
2,240.1 |
|
|
|
1,700.4 |
|
|
| Supramax |
|
1,810.9 |
|
|
|
1,823.8 |
|
|
|
7,413.2 |
|
|
|
7,528.4 |
|
|
| Handymax |
|
- |
|
|
|
61.0 |
|
|
|
17.4 |
|
|
|
351.8 |
|
|
| Handysize |
|
1,043.4 |
|
|
|
1,242.5 |
|
|
|
4,695.8 |
|
|
|
5,253.8 |
|
|
| Total |
|
4,863.6 |
|
|
|
5,661.3 |
|
|
|
20,588.9 |
|
|
|
21,974.7 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Fleet
utilization |
|
|
|
|
|
|
|
|
| Capesize |
|
99.1 |
% |
|
|
100.0 |
% |
|
|
98.4 |
% |
|
|
99.4 |
% |
|
| Panamax |
|
80.8 |
% |
|
|
95.8 |
% |
|
|
94.6 |
% |
|
|
97.4 |
% |
|
| Ultramax |
|
97.4 |
% |
|
|
99.6 |
% |
|
|
97.4 |
% |
|
|
98.2 |
% |
|
| Supramax |
|
96.0 |
% |
|
|
98.3 |
% |
|
|
97.3 |
% |
|
|
98.6 |
% |
|
| Handymax |
|
- |
|
|
|
92.7 |
% |
|
|
100.0 |
% |
|
|
93.6 |
% |
|
| Handysize |
|
95.6 |
% |
|
|
98.8 |
% |
|
|
97.3 |
% |
|
|
98.4 |
% |
|
| Fleet average |
|
96.4 |
% |
|
|
98.7 |
% |
|
|
97.5 |
% |
|
|
98.5 |
% |
|
| |
|
|
|
|
|
|
|
|
|
|
| Average
Daily Results: |
|
|
|
|
|
|
|
|
| Time Charter
Equivalent |
|
|
|
|
|
|
|
|
| Capesize |
$ |
18,415 |
|
|
$ |
17,052 |
|
|
$ |
13,181 |
|
|
$ |
15,422 |
|
|
| Panamax |
|
8,458 |
|
|
|
10,134 |
|
|
|
10,397 |
|
|
|
9,648 |
|
|
| Ultramax |
|
13,037 |
|
|
|
11,452 |
|
|
|
10,994 |
|
|
|
10,420 |
|
|
| Supramax |
|
9,983 |
|
|
|
12,977 |
|
|
|
8,939 |
|
|
|
10,816 |
|
|
| Handymax |
|
- |
|
|
|
16,313 |
|
|
|
- |
|
|
|
12,031 |
|
|
| Handysize |
|
10,396 |
|
|
|
10,545 |
|
|
|
8,157 |
|
|
|
9,099 |
|
|
| Fleet average |
|
12,619 |
|
|
|
13,237 |
|
|
|
10,182 |
|
|
|
11,364 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Daily vessel
operating expenses |
|
|
|
|
|
|
|
|
| Capesize |
$ |
5,108 |
|
|
$ |
4,868 |
|
|
$ |
5,076 |
|
|
$ |
4,855 |
|
|
| Panamax |
|
4,913 |
|
|
|
4,094 |
|
|
|
4,621 |
|
|
|
4,137 |
|
|
| Ultramax |
|
4,775 |
|
|
|
4,557 |
|
|
|
4,665 |
|
|
|
4,531 |
|
|
| Supramax |
|
4,616 |
|
|
|
4,195 |
|
|
|
4,474 |
|
|
|
4,303 |
|
|
| Handymax |
|
- |
|
|
|
3,745 |
|
|
|
- |
|
|
|
4,767 |
|
|
| Handysize |
|
3,865 |
|
|
|
3,896 |
|
|
|
4,016 |
|
|
|
4,035 |
|
|
| Fleet average |
|
4,640 |
|
|
|
4,336 |
|
|
|
4,576 |
|
|
|
4,379 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
1) 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. 2) 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. 3) 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. 4) We define chartered-in days as the
aggregate number of days in a period during which we chartered-in
third-party vessels. 5) We define available days 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. 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. 6) We define available days for the owned fleet as
available days less chartered-in days. 7) 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. 8) We calculate fleet
utilization as the number of our operating days during a period
divided by the number of ownership days plus chartered-in days less
drydocking days. 9) 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. Our
estimated TCE for the fourth quarter of 2019 is based on fixtures
booked to date. Actual results may vary based on the actual
duration of voyages and other factors. Accordingly, we are unable
to provide, without unreasonable efforts, a reconciliation of
estimated TCE for the fourth quarter to the most comparable
financial measures presented in accordance with GAAP.
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Three Months Ended December 31, 2019 |
|
Three Months Ended December 31, 2018 |
|
Twelve Months Ended December 31, 2019 |
|
Twelve Months Ended December 31, 2018 |
|
| Total
Fleet |
(unaudited) |
|
(unaudited) |
|
| Voyage revenues
(in thousands) |
$ |
108,705 |
|
$ |
112,185 |
|
$ |
389,496 |
|
$ |
367,522 |
|
| Voyage expenses
(in thousands) |
|
45,254 |
|
|
36,305 |
|
|
173,043 |
|
|
114,855 |
|
| Charter hire
expenses (in thousands) |
|
3,436 |
|
|
302 |
|
|
16,179 |
|
|
1,534 |
|
|
|
|
|
|
|
60,015 |
|
|
75,578 |
|
|
200,274 |
|
|
251,133 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Total available
days for owned fleet |
|
4,756 |
|
|
5,710 |
|
|
19,669 |
|
|
22,099 |
|
| Total TCE
rate |
$ |
12,619 |
|
$ |
13,237 |
|
$ |
10,182 |
|
$ |
11,364 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
10) 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.
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 February 25, 2020, Genco
Shipping & Trading Limited’s fleet consists of 17 Capesize, one
Panamax, six Ultramax, 20 Supramax and 10 Handysize vessels with an
aggregate capacity of approximately 4,914,000 dwt and an average
age of 9.7 years.
The following table reflects Genco’s fleet list
as of February 25, 2020:
|
|
|
|
|
|
|
| |
|
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 |
|
| |
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 |
|
| |
|
|
|
|
|
Conference Call Announcement
Genco Shipping & Trading Limited will hold a
conference call on Wednesday, February 26, 2020 at 8:30 a.m.
Eastern Time to discuss its 2019 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)
777-6978 or (800) 367-2403 and enter passcode 7774363. 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 7774363.
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
maintenance, repairs, and installation of equipment to comply with
applicable regulations 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
relative cost and availability of low sulfur and high sulfur fuel
or any additional scrubbers we may seek to install; (xix) our
ability to realize the economic benefits or recover the cost of the
scrubbers we have installed; (xx) worldwide compliance with IMO
2020 regulations; (xxi) our financial results the year ending
December 31, 2019 and other factors relating to determination of
the tax treatment of dividends we have declared; (xxii) the
duration and impact of the Covid-19 novel coronavirus epidemic; 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, 2018 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
