International Seaways Reports Third Quarter 2024 Results
International Seaways (INSW) reported Q3 2024 net income of $92 million ($1.84 per diluted share), compared to $98 million in Q3 2023. The company achieved Adjusted EBITDA of $130 million and shipping revenues of $225 million. Total liquidity stood at $694 million, including $153 million in cash. The company declared a combined dividend of $1.20 per share for December 2024, representing 75% of adjusted net income. During Q3, INSW repurchased 501,646 shares for approximately $25 million and sold a 2008-built MR tanker for $24 million. The company maintains a strong balance sheet with a historically low net loan-to-value of 13.5%.
International Seaways (INSW) ha riportato un reddito netto per il terzo trimestre del 2024 di 92 milioni di dollari (1,84 dollari per azione diluita), rispetto ai 98 milioni di dollari nel terzo trimestre del 2023. L'azienda ha raggiunto un EBITDA rettificato di 130 milioni di dollari e ricavi da trasporto di 225 milioni di dollari. La liquidità totale è stata di 694 milioni di dollari, di cui 153 milioni in contante. La società ha dichiarato un dividendo complessivo di 1,20 dollari per azione per dicembre 2024, che rappresenta il 75% del reddito netto rettificato. Durante il terzo trimestre, INSW ha riacquistato 501.646 azioni per circa 25 milioni di dollari e ha venduto una petroliera MR costruita nel 2008 per 24 milioni di dollari. L'azienda mantiene un solido bilancio con un rapporto di prestito netto su valore storicamente basso del 13,5%.
International Seaways (INSW) reportó un ingreso neto de 92 millones de dólares (1,84 dólares por acción diluida) para el tercer trimestre de 2024, en comparación con 98 millones de dólares en el tercer trimestre de 2023. La compañía logró un EBITDA ajustado de 130 millones de dólares y ingresos por transporte de 225 millones de dólares. La liquidez total fue de 694 millones de dólares, incluyendo 153 millones en efectivo. La empresa declaró un dividendo combinado de 1,20 dólares por acción para diciembre de 2024, lo que representa el 75% del ingreso neto ajustado. Durante el tercer trimestre, INSW recompró 501.646 acciones por aproximadamente 25 millones de dólares y vendió un tanque MR construido en 2008 por 24 millones de dólares. La compañía mantiene un sólido balance con un índice de préstamo neto sobre valor históricamente bajo del 13,5%.
International Seaways (INSW)는 2024년 3분기 순이익이 9,200만 달러(희석 주당 1.84달러)에 달했다고 발표했으며, 이는 2023년 3분기의 9,800만 달러에 비해 감소한 수치입니다. 회사는 조정된 EBITDA가 1억 3천만 달러에 성과를 올렸으며, 운송 수익은 2억 2,500만 달러를 기록했습니다. 총 유동성은 6억 9,400만 달러이며, 현금으로는 1억 5천 3백만 달러가 포함되어 있습니다. 회사는 2024년 12월에 주당 1.20달러의 배당금을 선언했으며, 이는 조정된 순이익의 75%에 해당합니다. 3분기 동안 INSW는 약 2,500만 달러에 501,646주를 재매입하고, 2008년에 건조된 MR 유조선을 2,400만 달러에 매각했습니다. 회사는 역사적으로 낮은 13.5%의 순대출 대비 가치를 유지하며 안정적인 재무 구조를 유지하고 있습니다.
International Seaways (INSW) a rapporté un revenu net de 92 millions de dollars pour le troisième trimestre 2024 (1,84 dollar par action diluée), contre 98 millions de dollars au troisième trimestre 2023. La société a réalisé un EBITDA ajusté de 130 millions de dollars et des revenus de transport de 225 millions de dollars. La liquidité totale s'élevait à 694 millions de dollars, dont 153 millions en espèces. La société a déclaré un dividende total de 1,20 dollar par action pour décembre 2024, représentant 75 % du revenu net ajusté. Au cours du troisième trimestre, INSW a racheté 501 646 actions pour environ 25 millions de dollars et a vendu un pétrolier MR construit en 2008 pour 24 millions de dollars. L'entreprise maintient un bilan solide avec un ratio de prêt net par rapport à la valeur historiquement bas de 13,5 %.
International Seaways (INSW) berichtete für das 3. Quartal 2024 einen Nettogewinn von 92 Millionen USD (1,84 USD pro verwässerter Aktie), verglichen mit 98 Millionen USD im 3. Quartal 2023. Das Unternehmen erzielte ein bereinigtes EBITDA von 130 Millionen USD und Versanderlöse von 225 Millionen USD. Die gesamte Liquidität betrug 694 Millionen USD, einschließlich 153 Millionen USD in bar. Das Unternehmen erklärte eine Gesamtdividende von 1,20 USD pro Aktie für Dezember 2024, was 75% des bereinigten Nettogewinns entspricht. Im 3. Quartal erwarb INSW 501.646 Aktien für etwa 25 Millionen USD zurück und verkaufte einen 2008 gebauten MR-Tanker für 24 Millionen USD. Das Unternehmen weist eine starke Bilanz mit einem historisch niedrigen Nettokredit-zu-Wert-Verhältnis von 13,5% auf.
- Strong liquidity position of $694 million
- Net income of $92 million ($1.84 per diluted share)
- Adjusted EBITDA of $130 million
- Low net loan-to-value ratio of 13.5%
- Significant shareholder returns through $1.20 per share dividend
- $24 million proceeds from vessel sale
- $41 million in aggregate gains from vessel sales in 2024
- Decrease in net income compared to Q3 2023 ($98 million)
- Decline in shipping revenues from $242M in Q3 2023 to $225M
- Lower TCE revenues ($220M vs $236M in Q3 2023)
- Decreased VLCC spot earnings ($29,700 vs $41,000 per day in Q3 2023)
Insights
Strong Q3 results showcase INSW's robust financial performance with
The strategic fleet optimization through vessel sales generated
The tanker market outlook remains positive despite some rate moderation. VLCC rates averaged
HIGHLIGHTS & RECENT DEVELOPMENTS
Quarterly Results:
-
Net income for the third quarter of 2024 was
$92 million $1.84 -
Adjusted net income(1) for the third quarter of 2024 was
$78 million $1.57 -
Adjusted EBITDA(1) for the third quarter of 2024 was
$130 million
Robust Balance Sheet:
-
Total liquidity was approximately
$694 million $153 million $541 million -
Repaid
$50 million $500 million -
Net loan-to-value remained historically low at approximately
13.5% as of September 30, 2024.
Fleet Optimization Program:
-
Sold a 2008-built MR for net proceeds of approximately
$24 million
Returns to Shareholders:
-
Repurchased 501,646 shares for a total cost of approximately
$25 million $49.81 -
Paid a combined
$1.50 -
Declared a combined dividend of
$1.20 75% of adjusted net income(1) for the third quarter.
“We continue to execute on our balanced capital allocation strategy, utilizing our strong cash generation in third quarter to deliver double-digit returns to our shareholders,” said Lois K. Zabrocky, International Seaways President and CEO. “Including the combined dividend of
Ms. Zabrocky added, “Market fundamentals remain strong for tankers in the near term, supported by global oil demand growth, which is expected to be at or above historical growth rates. Ton-mile demand remains elevated due to geopolitical events that could take significant time to unwind. While newbuilding orders have risen to about
Jeff Pribor, the Company’s CFO stated, “We returned nearly
THIRD QUARTER 2024 RESULTS
Net income for the third quarter of 2024 was
Shipping revenues for the third quarter were
Adjusted EBITDA(1) for the third quarter was
Crude Tankers
Shipping revenues for the Crude Tankers segment were
Product Carriers
Shipping revenues for the Product Carriers segment were
YEAR-TO-DATE 2024 RESULTS
Net income for the nine months ended September 30, 2024 was
Shipping revenues for the nine months ended September 30, 2024 were
Adjusted EBITDA(1) for the nine months ended September 30, 2024 was
Crude Tankers
Shipping revenues for the Crude Tankers segment were
Product Carriers
Shipping revenues for the Product Carriers segment were
BALANCE SHEET ENHANCEMENTS
During the third quarter of 2024, the Company repaid
In April 2024, the Company amended and extended the
In June 2024, the Company borrowed
FLEET OPTIMIZATION PROGRAM
In July 2024, the Company sold a 2008-built MR for net proceeds of approximately
During the nine months ended September 30, 2024, the Company took delivery of six modern MR vessels for an aggregate consideration of
During 2024, the Company entered into three time charter agreements on two 2009-built MRs and a 2014-built LR2. The charters have durations of around three years and were delivered to the charterers during the third quarter. From October 1, 2024 through expiry, total future contracted revenues aggregate to approximately
The Company has contracts to build six scrubber-fitted, dual-fuel (LNG) ready, LR1 vessels in
RETURNS TO SHAREHOLDERS
In September 2024, the Company paid a combined dividend of
On November 6, 2024, the Company’s Board of Directors declared a combined dividend of
During the third quarter of 2024, the Company repurchased and retired 501,646 shares of its common stock in open market purchases, at an average price of
(1) This is a non-GAAP financial measure used throughout this press release; please refer to the section “Reconciliation to Non-GAAP Financial Information” for explanations of our non-GAAP financial measures and the reconciliations of reported GAAP to non-GAAP financial measures.
CONFERENCE CALL
The Company will host a conference call to discuss its third quarter 2024 results at 9:00 a.m. Eastern Time on Thursday, November 7, 2024. To access the call, participants should dial (833) 470-1428 for domestic callers and (929) 526-1599 for international callers and entering 730934. Please dial in ten minutes prior to the start of the call. A live webcast of the conference call will be available from the Investor Relations section of the Company’s website at https://www.intlseas.com.
An audio replay of the conference call will be available until November 14, 2024, by dialing (866) 813-9403 for domestic callers and +44 204 525 0658 for international callers, and entering Access Code 826562.
ABOUT INTERNATIONAL SEAWAYS, INC.
International Seaways, Inc. (NYSE: INSW) is one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets. International Seaways owns and operates a fleet of 83 vessels, including 13 VLCCs, 13 Suezmaxes, five Aframaxes/LR2s, 14 LR1s (including six newbuildings), and 38 MR tankers. International Seaways has an experienced team committed to the very best operating practices and the highest levels of customer service and operational efficiency. International Seaways is headquartered in
Forward-Looking Statements
This release contains forward-looking statements. In addition, the Company may make or approve certain statements in future filings with the
Category: Earnings
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Consolidated Statements of Operations |
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($ in thousands, except per share amounts) |
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
Shipping Revenues: |
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Pool revenues |
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$ |
170,007 |
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$ |
194,465 |
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$ |
603,970 |
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$ |
701,634 |
Time and bareboat charter revenues |
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36,842 |
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27,587 |
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99,030 |
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|
66,849 |
Voyage charter revenues |
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18,341 |
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19,656 |
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54,000 |
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|
52,558 |
Total Shipping Revenues |
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225,190 |
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241,708 |
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757,000 |
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821,041 |
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Operating Expenses: |
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Voyage expenses |
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5,503 |
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5,756 |
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14,537 |
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|
13,434 |
Vessel expenses |
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71,269 |
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64,596 |
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202,490 |
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|
188,516 |
Charter hire expenses |
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7,245 |
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11,297 |
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20,841 |
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|
30,599 |
Depreciation and amortization |
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39,304 |
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33,363 |
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109,974 |
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95,356 |
General and administrative |
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13,411 |
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12,314 |
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37,494 |
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|
35,082 |
Other operating expenses |
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|
985 |
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|
— |
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2,715 |
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— |
Third-party debt modification fees |
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- |
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148 |
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168 |
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|
568 |
(Gain)/loss on disposal of vessels and other assets, net |
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(13,499) |
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74 |
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(41,402) |
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(10,648) |
Total operating expenses |
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124,218 |
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127,548 |
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346,817 |
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352,907 |
Income from vessel operations |
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100,972 |
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114,160 |
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410,183 |
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468,134 |
Other income |
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3,211 |
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|
646 |
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|
8,525 |
|
|
8,308 |
Income before interest expense and income taxes |
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|
104,183 |
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114,806 |
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418,708 |
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|
476,442 |
Interest expense |
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(12,496) |
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(16,817) |
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(37,808) |
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(51,678) |
Income before income taxes |
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|
91,687 |
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97,989 |
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380,900 |
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|
424,764 |
Income tax benefit/(provision) |
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1 |
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(52) |
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1 |
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(432) |
Net income |
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$ |
91,688 |
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$ |
97,937 |
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$ |
380,901 |
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$ |
424,332 |
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Weighted Average Number of Common Shares Outstanding: |
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Basic |
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49,544,412 |
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48,861,356 |
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49,302,367 |
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49,008,901 |
Diluted |
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49,881,317 |
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49,275,022 |
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49,677,238 |
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49,442,825 |
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Per Share Amounts: |
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Basic net income per share |
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$ |
1.85 |
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$ |
2.00 |
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$ |
7.72 |
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$ |
8.65 |
Diluted net income per share |
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$ |
1.84 |
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$ |
1.99 |
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$ |
7.66 |
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$ |
8.58 |
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Consolidated Balance Sheets |
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($ in thousands) |
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September 30, |
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December 31, |
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2024 |
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2023 |
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(Unaudited) |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
103,309 |
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$ |
126,760 |
Short-term investments |
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50,000 |
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60,000 |
Voyage receivables |
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191,093 |
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247,165 |
Other receivables |
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15,682 |
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14,303 |
Inventories |
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378 |
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1,329 |
Prepaid expenses and other current assets |
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9,721 |
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10,342 |
Current portion of derivative asset |
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2,087 |
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5,081 |
Total Current Assets |
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372,270 |
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464,980 |
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Vessels and other property, less accumulated depreciation |
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2,045,331 |
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1,914,426 |
Vessels construction in progress |
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24,401 |
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11,670 |
Deferred drydock expenditures, net |
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82,628 |
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70,880 |
Operating lease right-of-use assets |
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12,295 |
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20,391 |
Pool working capital deposits |
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33,794 |
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31,748 |
Long-term derivative asset |
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214 |
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1,153 |
Other assets |
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16,913 |
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6,571 |
Total Assets |
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$ |
2,587,846 |
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$ |
2,521,819 |
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LIABILITIES AND EQUITY |
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Current Liabilities: |
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Accounts payable, accrued expenses and other current liabilities |
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$ |
45,796 |
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$ |
57,904 |
Current portion of operating lease liabilities |
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7,673 |
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10,223 |
Current installments of long-term debt |
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49,823 |
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127,447 |
Total Current Liabilities |
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103,292 |
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195,574 |
Long-term operating lease liabilities |
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6,773 |
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11,631 |
Long-term debt |
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600,689 |
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595,229 |
Other liabilities |
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2,462 |
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2,628 |
Total Liabilities |
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713,216 |
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805,062 |
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Equity: |
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Total Equity |
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1,874,630 |
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1,716,757 |
Total Liabilities and Equity |
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$ |
2,587,846 |
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$ |
2,521,819 |
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Consolidated Statements of Cash Flows |
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($ in thousands) |
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Nine Months Ended September 30, |
|||
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2024 |
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2023 |
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(Unaudited) |
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(Unaudited) |
Cash Flows from Operating Activities: |
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Net income |
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$ |
380,901 |
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$ |
424,332 |
Items included in net income not affecting cash flows: |
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Depreciation and amortization |
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109,974 |
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95,356 |
Amortization of debt discount and other deferred financing costs |
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3,093 |
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|
4,491 |
Deferred financing costs write-off |
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— |
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1,952 |
Stock compensation |
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5,736 |
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|
5,912 |
Earnings of affiliated companies |
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(42) |
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20 |
Other – net |
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(519) |
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(2,140) |
Items included in net income related to investing and financing activities: |
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Gain on disposal of vessels and other assets, net |
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(41,402) |
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(10,648) |
Loss on extinguishment of debt |
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— |
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1,323 |
Payments for drydocking |
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(43,855) |
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(27,622) |
Insurance claims proceeds related to vessel operations |
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1,004 |
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|
2,858 |
Changes in operating assets and liabilities |
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38,626 |
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|
67,085 |
Net cash provided by operating activities |
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453,516 |
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|
562,919 |
Cash Flows from Investing Activities: |
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Expenditures for vessels, vessel improvements and vessels under construction |
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(216,589) |
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(192,218) |
Proceeds from disposal of vessels and other assets |
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|
71,915 |
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|
20,036 |
Expenditures for other property |
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(880) |
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(1,035) |
Investments in short-term time deposits |
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(125,000) |
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(210,000) |
Proceeds from maturities of short-term time deposits |
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|
135,000 |
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|
215,000 |
Pool working capital deposits |
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(1,532) |
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|
(1,334) |
Net cash used in investing activities |
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|
(137,086) |
|
|
(169,551) |
Cash Flows from Financing Activities: |
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|
Borrowing on revolving credit facilities |
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50,000 |
|
|
50,000 |
Repayments on revolving credit facilities |
|
|
(50,000) |
|
|
— |
Repayments of debt |
|
|
(39,851) |
|
|
(323,685) |
Proceeds from sale and leaseback financing, net of issuance and deferred financing costs |
|
|
— |
|
|
169,717 |
Payments on sale and leaseback financing and finance lease |
|
|
(36,831) |
|
|
(123,732) |
Payments of deferred financing costs |
|
|
(5,759) |
|
|
(3,006) |
Premium and fees on extinguishment of debt |
|
|
— |
|
|
(1,323) |
Repurchase of common stock |
|
|
(25,000) |
|
|
(13,948) |
Cash dividends paid |
|
|
(225,385) |
|
|
(247,001) |
Cash paid to tax authority upon vesting or exercise of stock-based compensation |
|
|
(7,055) |
|
|
(5,158) |
Net cash used in financing activities |
|
|
(339,881) |
|
|
(498,136) |
Net decrease in cash and cash equivalents |
|
|
(23,451) |
|
|
(104,768) |
Cash and cash equivalents at beginning of year |
|
|
126,760 |
|
|
243,744 |
Cash and cash equivalents at end of period |
|
$ |
103,309 |
|
$ |
138,976 |
Spot and Fixed TCE Rates Achieved and Revenue Days
The following tables provides a breakdown of TCE rates achieved for spot and fixed charters and the related revenue days for the three months ended September 30, 2024 and the comparable period of 2023. Revenue days in the quarter ended September 30, 2024 totaled 6,671 compared with 6,663 in the prior year quarter. A summary fleet list by vessel class can be found later in this press release. The information in these tables excludes commercial pool fees/commissions averaging approximately
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2024 |
|
|
Three Months Ended September 30, 2023 |
||||||||||||
|
|
|
Spot |
|
|
Fixed |
|
|
Total |
|
|
Spot |
|
|
Fixed |
|
|
Total |
Crude Tankers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VLCC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
29,711 |
|
$ |
31,903 |
|
|
|
|
$ |
40,961 |
|
$ |
35,319 |
|
|
|
Number of Revenue Days |
|
|
881 |
|
|
276 |
|
|
1,157 |
|
|
870 |
|
|
297 |
|
|
1,167 |
Suezmax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
38,044 |
|
$ |
30,979 |
|
|
|
|
$ |
38,708 |
|
$ |
30,973 |
|
|
|
Number of Revenue Days |
|
|
1,014 |
|
|
183 |
|
|
1,197 |
|
|
1,012 |
|
|
184 |
|
|
1,196 |
Aframax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
25,119 |
|
$ |
38,574 |
|
|
|
|
$ |
34,046 |
|
$ |
38,652 |
|
|
|
Number of Revenue Days |
|
|
186 |
|
|
91 |
|
|
277 |
|
|
232 |
|
|
73 |
|
|
305 |
Total Crude Tankers Revenue Days |
|
|
2,081 |
|
|
550 |
|
|
2,631 |
|
|
2,114 |
|
|
554 |
|
|
2,668 |
Product Carriers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aframax (LR2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
- |
|
$ |
39,498 |
|
|
|
|
$ |
32,603 |
|
$ |
- |
|
|
|
Number of Revenue Days |
|
|
- |
|
|
69 |
|
|
69 |
|
|
92 |
|
|
- |
|
|
92 |
Panamax (LR1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
46,899 |
|
$ |
- |
|
|
|
|
$ |
56,295 |
|
$ |
- |
|
|
|
Number of Revenue Days |
|
|
594 |
|
|
- |
|
|
594 |
|
|
685 |
|
|
- |
|
|
685 |
MR |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
29,006 |
|
$ |
21,920 |
|
|
|
|
$ |
26,563 |
|
$ |
21,200 |
|
|
|
Number of Revenue Days |
|
|
2,685 |
|
|
692 |
|
|
3,377 |
|
|
2,836 |
|
|
382 |
|
|
3,218 |
Total Product Carriers Revenue Days |
|
|
3,279 |
|
|
761 |
|
|
4,040 |
|
|
3,613 |
|
|
382 |
|
|
3,995 |
Total Revenue Days |
|
|
5,360 |
|
|
1,311 |
|
|
6,671 |
|
|
5,727 |
|
|
936 |
|
|
6,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue days in the above table exclude days related to full service lighterings. In addition, during 2024 and 2023, certain of the Company’s vessels were employed on transitional voyages, which are excluded from the table above.
During the 2024 and 2023 periods, each of the Company’s LR1s participated in the Panamax International Pool and transported crude oil cargoes exclusively.
Fleet Information
As of September 30, 2024, INSW’s fleet totaled 82 vessels, of which 62 were owned, 14 were chartered in and six contracted newbuildings.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total at September 30, 2024 |
|||
Vessel Fleet and Type |
|
Vessels Owned |
|
|
Vessels Chartered-in1 |
|
|
Total Vessels |
|
|
Total Dwt |
Operating Fleet |
|
|
|
|
|
|
|
|
|
|
|
VLCC |
|
4 |
|
|
9 |
|
|
13 |
|
|
3,910,572 |
Suezmax |
|
13 |
|
|
- |
|
|
13 |
|
|
2,061,754 |
Aframax |
|
4 |
|
|
- |
|
|
4 |
|
|
452,375 |
Crude Tankers |
|
21 |
|
|
9 |
|
|
30 |
|
|
6,424,701 |
|
|
|
|
|
|
|
|
|
|
|
|
LR2 |
|
1 |
|
|
- |
|
|
1 |
|
|
112,691 |
LR1 |
|
6 |
|
|
1 |
|
|
7 |
|
|
522,698 |
MR |
|
34 |
|
|
4 |
|
|
38 |
|
|
1,901,526 |
Product Carriers |
|
41 |
|
|
5 |
|
|
46 |
|
|
2,536,915 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Fleet |
|
62 |
|
|
14 |
|
|
76 |
|
|
8,961,616 |
|
|
|
|
|
|
|
|
|
|
|
|
Newbuild Fleet |
|
|
|
|
|
|
|
|
|
|
|
LR1 |
|
6 |
|
|
- |
|
|
6 |
|
|
441,600 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Newbuild Fleet |
|
6 |
|
|
- |
|
|
6 |
|
|
441,600 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating and Newbuild Fleet |
|
68 |
|
|
14 |
|
|
82 |
|
|
9,403,216 |
(1) Includes bareboat charters, but excludes vessels chartered in where the duration of the charter was one year or less at inception. |
Reconciliation to Non-GAAP Financial Information
The Company believes that, in addition to conventional measures prepared in accordance with GAAP, the following non-GAAP measures may provide certain investors with additional information that will better enable them to evaluate the Company’s performance. Accordingly, these non-GAAP measures are intended to provide supplemental information, and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP.
(A) Adjusted Net Income
Adjusted net income consists of net income adjusted for the impact of certain items that we do not consider indicative of our ongoing operating performance. This measure does not represent or substitute net income or any other financial item that is determined in accordance with GAAP. While adjusted net income is frequently used as a measure of operating results and performance, it may not be necessarily comparable with other similarly titled captions of other companies due to differences in methods of calculation. The following table reconciles net income, as reflected in the consolidated statement of operations, to adjusted net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
||||||
($ in thousands) |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Net income |
|
$ |
91,688 |
|
$ |
97,937 |
|
$ |
380,901 |
|
$ |
424,332 |
Third-party debt modification fees |
|
|
- |
|
|
148 |
|
|
168 |
|
|
568 |
Write-off of deferred financing costs |
|
|
- |
|
|
1,343 |
|
|
- |
|
|
1,952 |
(Gain)/loss on disposal of vessels and other assets, net of impairments |
|
|
(13,499) |
|
|
74 |
|
|
(41,402) |
|
|
(10,648) |
Provision for settlement of multi-employer pension plan obligations |
|
|
44 |
|
|
- |
|
|
1,019 |
|
|
- |
Loss on extinguishment of debt |
|
|
- |
|
|
1,211 |
|
|
- |
|
|
1,323 |
Adjusted Net Income |
|
$ |
78,233 |
|
$ |
100,713 |
|
$ |
340,686 |
|
$ |
417,527 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (diluted) |
|
|
49,881,317 |
|
|
49,275,022 |
|
|
49,677,238 |
|
|
49,442,825 |
Adjusted Net Income per diluted share |
|
$ |
1.57 |
|
$ |
2.04 |
|
$ |
6.85 |
|
$ |
8.44 |
(B) EBITDA and Adjusted EBITDA
EBITDA represents net income before interest expense, income taxes, and depreciation and amortization expense. Adjusted EBITDA consists of EBITDA adjusted for the impact of certain items that we do not consider indicative of our ongoing operating performance. EBITDA and Adjusted EBITDA do not represent, and should not be a substitute for, net income or cash flows from operations as determined in accordance with GAAP. Some of the limitations are: (i) EBITDA and Adjusted EBITDA do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments; (ii) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs; and (iii) EBITDA and Adjusted EBITDA do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debt. While EBITDA and Adjusted EBITDA are frequently used as a measure of operating results and performance, neither of them is necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. The following table reconciles net income as reflected in the condensed consolidated statements of operations, to EBITDA and Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
||||||
($ in thousands) |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Net income |
|
$ |
91,688 |
|
$ |
97,937 |
|
$ |
380,901 |
|
$ |
424,332 |
Income tax (benefit)/provision |
|
|
(1) |
|
|
52 |
|
|
(1) |
|
|
432 |
Interest expense |
|
|
12,496 |
|
|
16,817 |
|
|
37,808 |
|
|
51,678 |
Depreciation and amortization |
|
|
39,304 |
|
|
33,363 |
|
|
109,974 |
|
|
95,356 |
EBITDA |
|
|
143,487 |
|
|
148,169 |
|
|
528,682 |
|
|
571,798 |
Third-party debt modification fees |
|
|
- |
|
|
148 |
|
|
168 |
|
|
568 |
Write-off of deferred financing costs |
|
|
- |
|
|
1,343 |
|
|
- |
|
|
1,952 |
(Gain)/loss on disposal of vessels and other assets, net of impairments |
|
|
(13,499) |
|
|
74 |
|
|
(41,402) |
|
|
(10,648) |
Provision for settlement of multi-employer pension plan obligations |
|
|
44 |
|
|
- |
|
|
1,019 |
|
|
- |
Loss on extinguishment of debt |
|
|
- |
|
|
1,211 |
|
|
- |
|
|
1,323 |
Adjusted EBITDA |
|
$ |
130,032 |
|
$ |
150,945 |
|
$ |
488,467 |
|
$ |
564,993 |
(C) Cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
December 31, |
($ in thousands) |
|
2024 |
|
|
2023 |
Cash and cash equivalents |
$ |
103,309 |
|
$ |
126,760 |
Short-term investments |
|
50,000 |
|
|
60,000 |
Total Cash |
$ |
153,309 |
|
$ |
186,760 |
(D) Free Cash Flow
Free cash flow represents cash flows from operating activities, less mandatory repayments of debt (including those under sale and leaseback agreements) less capital expenditures excluding payments made to acquire a vessel or vessels, which the Company believes is useful to investors in understanding the net cash generated from its core business activities after certain mandatory obligations.
($ in thousands) |
|
2023 |
|
2024 |
|||||||||||
For the three months ended: |
September 30 |
December 31 |
|
March 31 |
|
June 30 |
September 30 |
||||||||
Net cash provided by operating activities (1) |
$ |
148,463 |
$ |
125,483 |
$ |
156,442 |
$ |
167,939 |
$ |
129,135 |
|||||
Repayments of debt (1) |
(132,152) |
(108,365) |
(19,538) |
- |
- |
||||||||||
Payments on sale and leaseback (1) |
(10,946) |
(12,233) |
(12,146) |
(12,179) |
(12,506) |
||||||||||
Less: optional prepayments (2) |
104,312 |
(3) |
88,382 |
- |
- |
- |
|||||||||
Expenditures for vessels (1) |
(4,150) |
(12,941) |
(26,420) |
(176,455) |
(13,714) |
||||||||||
Expenditures for other property (1) |
(449) |
(436) |
(701) |
(100) |
(79) |
||||||||||
Less: payments for acquiring vessels (2) |
|
- |
|
11,548 |
|
23,200 |
174,896 |
|
11,854 |
||||||
Free Cash Flow |
$ |
105,078 |
$ |
91,438 |
$ |
120,837 |
$ |
154,101 |
$ |
114,690 |
|||||
(1) |
|
Reflects current period balance on the face of the Consolidated Statement of Cash Flows, less the prior quarter’s balance on the face of the Consolidated Statement of Cash Flows. The captions have been adjusted for summary purposes; the complete list of captions are as follows, in order as in the table above: Net cash provided by operating activities, Repayments of debt, Payments and advance payment on sale and leaseback financing and finance lease, Expenditures for vessels, vessel improvements and vessels under construction, and Expenditures for other property. For the period ended September 30, 2023, Repayments of Debt include the line item Premium and fees on extinguishment of debt. |
(2) |
|
Payments for acquiring vessels include the contractual payments for the LR1 newbuildings. In addition, during the three months ended March 31, 2024, the Company announced the acquisition of six MRs for a total contract price of |
(3) |
|
In connection with the execution of the revolving credit facility (“ |
(E) Time Charter Equivalent (TCE) Revenues
Consistent with general practice in the shipping industry, the Company uses TCE revenues, which represents shipping revenues less voyage expenses, as a measure to compare revenue generated from a voyage charter to revenue generated from a time charter. Time charter equivalent revenues, a non-GAAP measure, provides additional meaningful information in conjunction with shipping revenues, the most directly comparable GAAP measure, because it assists Company management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. Reconciliation of TCE revenues of the segments to shipping revenues as reported in the consolidated statements of operations follow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
||||||||
($ in thousands) |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Time charter equivalent revenues |
|
$ |
219,687 |
|
$ |
235,952 |
|
$ |
742,463 |
|
$ |
807,607 |
|
Add: Voyage expenses |
|
|
5,503 |
|
|
5,756 |
|
|
14,537 |
|
|
13,434 |
|
Shipping revenues |
|
$ |
225,190 |
|
$ |
241,708 |
|
$ |
757,000 |
|
$ |
821,041 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106146002/en/
Investor Relations & Media:
Tom Trovato, International Seaways, Inc.
(212) 578-1602
ttrovato@intlseas.com
Source: International Seaways, Inc.
FAQ
What was International Seaways (INSW) earnings per share in Q3 2024?
How much dividend did INSW declare for December 2024?
What was INSW's total liquidity as of September 30, 2024?
How many shares did INSW repurchase in Q3 2024?
