Overseas Shipholding Group Reports Third Quarter 2020 Results
Overseas Shipholding Group (NYSE: OSG) reported its Q3 2020 results, showing significant improvement in shipping revenues, which reached $105.7 million, up 30.7% from Q3 2019. Net loss narrowed to $0.7 million or $(0.01) per diluted share, compared to a loss of $3.8 million or $(0.04) per share last year. Adjusted EBITDA was $21.8 million, a 35.7% increase. However, a 193-day increase in drydocking led to a $9.9 million revenue loss. The company strengthened its balance sheet, repaying a $24 million term loan, and highlighted confidence in a recovery for 2021.
- Shipping revenues increased to $105.7 million, up 30.7% YoY.
- Net loss narrowed to $0.7 million from $3.8 million YoY.
- Adjusted EBITDA rose to $21.8 million, a 35.7% increase YoY.
- Operating income improved to $5.2 million, compared to $1.2 million YoY.
- Cash total at $54.1 million as of September 30, 2020.
- Successfully repaid $24 million term loan.
- 193-day increase in off hire days due to drydock activities led to $9.9 million revenue loss.
- Decrease in Delaware Bay lightering volumes compared to Q3 2019.
TAMPA, Fla.--(BUSINESS WIRE)--Overseas Shipholding Group, Inc. (NYSE: OSG) (the “Company” or “OSG”), a provider of energy transportation services for crude oil and petroleum products in the U.S. Flag markets, today reported results for the third quarter of 2020.
Highlights
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Net loss for the third quarter 2020 was |
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Shipping revenues for the third quarter 2020 were |
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● |
Time charter equivalent (TCE) revenues(A), a non-GAAP measure, for the third quarter 2020 were |
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● |
Third quarter 2020 Adjusted EBITDA(B), a non-GAAP measure, was |
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● |
Third quarter 2020 193 day increase in off hire days due to drydock activities, resulting in a |
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Total cash(C) was |
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On July 30, 2020, the Company repaid, using cash on hand, its |
Sam Norton, President and CEO, stated, “OSG delivered solid financial results in the quarter just completed. We continued to benefit from a high percentage of fixed revenue streams and we have continued to manage pandemic related logistical, health, safety and other costs in line with expectations. As a result, cashflow from operations continued to be strong, particularly when considering the nearly 200 days of revenue lost during the quarter to drydock operations. We have taken steps to preserve value and to strengthen our liquidity in anticipation of heightened volatility in the months ahead. With a strengthened balance sheet and the good prospects for a sustained recovery in 2021, we remain confident in our long-term strategy and the fundamentals of our business.
Mr. Norton added, “The sense of responsibility shared by OSG’s mariners and shore-based support team in meeting the essential need to supply transportation fuels to the markets that we serve is commendable. We are managing our operations very much aware that the systems within which we operate are under stress, with risks and vulnerabilities that have previously not affected our performance. The contribution made by all of our employees, and in particular our seafarers, in realizing the strong financial results reported this morning should thus be applauded by all who benefit from their service.”
A, B, C Reconciliations of these non-GAAP financial measures are included in the financial tables within this press release below
Third Quarter 2020 Results
Shipping revenues were
Operating income for the third quarter of 2020 was
Net loss for the third quarter 2020 was
Adjusted EBITDA was
Conference Call
The Company will host a conference call to discuss its third quarter 2020 results at 9:30 a.m. Eastern Time (“ET”) on Friday, November 6, 2020.
To access the call, participants should dial (844) 850-0546 for domestic callers and (412) 317-5203 for international callers. 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 http://www.osg.com/
An audio replay of the conference call will be available starting at 11:30 a.m. ET on Friday, November 6, 2020 through 10:59 p.m. ET on Friday, November 20, 2020 by dialing (877) 344-7529 for domestic callers and (412) 317-0088 for international callers, and entering Access Code 10149303.
About Overseas Shipholding Group, Inc.
Overseas Shipholding Group, Inc. (NYSE:OSG) is a publicly traded company providing energy transportation services for crude oil and petroleum products in the U.S. Flag markets. OSG is a major operator of tankers and ATBs in the Jones Act industry. OSG’s 21 vessel U.S. Flag fleet consists of three crude oil tankers doing business in Alaska, one conventional ATB, two lightering ATBs, three shuttle tankers, ten MR tankers, and two non-Jones Act MR tankers that participate in the U.S. Maritime Security Program. OSG also currently owns and operates two Marshall Islands flagged MR tankers which trade internationally. In addition to the currently operating fleet, OSG has on order one Jones Act compliant barge which is scheduled for delivery in late 2020.
OSG is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world’s most customer-focused marine transportation companies and is headquartered in Tampa, FL. More information is available at www.osg.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, the Company may make or approve certain forward-looking statements in future filings with the Securities and Exchange Commission (SEC), in press releases, or in oral or written presentations by representatives of the Company. All statements other than statements of historical facts should be considered forward-looking statements. These matters or statements may relate to our prospects, supply and demand for vessels in the markets in which we operate and the impact on market rates and vessel earnings, the expected delivery schedule of our two new barges under construction and their expected participation in the Jones Act trade, the continued stability of our niche businesses, and the impact of our time charter contracts on our future financial performance. Forward-looking statements are based on our current plans, estimates and projections, and are subject to change based on a number of factors. COVID-19 has had, and will have in the future, a profound impact on our workforce, and many aspects of our business and industry. Investors should carefully consider the risk factors outlined in more detail in our Annual Report on Form 10-K for the year ended December 31, 2019, in our upcoming Form 10-Q filing, and in similar sections of other filings we make with the SEC from time to time. We do not assume any obligation to update or revise any forward-looking statements except as may be required by applicable law. Forward-looking statements and written and oral forward-looking statements attributable to us or our representatives after the date of this press release are qualified in their entirety by the cautionary statements contained in this paragraph and in other reports previously or hereafter filed by us with the SEC.
Consolidated Balance Sheets |
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($ in thousands) |
||||||||
|
|
September 30,
|
|
|
December 31,
|
|
||
|
|
(unaudited) |
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
54,018 |
|
|
$ |
41,503 |
|
Restricted cash |
|
|
49 |
|
|
|
60 |
|
Voyage receivables, including unbilled of of reserve for doubtful accounts |
|
|
12,366 |
|
|
|
9,247 |
|
Income tax receivable |
|
|
454 |
|
|
|
1,192 |
|
Other receivables |
|
|
1,780 |
|
|
|
3,037 |
|
Inventories, prepaid expenses and other current assets |
|
|
2,929 |
|
|
|
2,470 |
|
Total Current Assets |
|
|
71,596 |
|
|
|
57,509 |
|
Vessels and other property, less accumulated depreciation |
|
|
834,857 |
|
|
|
737,212 |
|
Deferred drydock expenditures, net |
|
|
39,358 |
|
|
|
23,734 |
|
Total Vessels, Other Property and Deferred Drydock |
|
|
874,215 |
|
|
|
760,946 |
|
Restricted cash - non current |
|
|
73 |
|
|
|
114 |
|
Investments in and advances to affiliated companies |
|
|
— |
|
|
|
3,599 |
|
Intangible assets, less accumulated amortization |
|
|
28,367 |
|
|
|
31,817 |
|
Operating lease right-of-use assets |
|
|
234,756 |
|
|
|
286,469 |
|
Other assets |
|
|
21,342 |
|
|
|
35,013 |
|
Total Assets |
|
$ |
1,230,349 |
|
|
$ |
1,175,467 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
Accounts payable, accrued expenses and other current liabilities |
|
$ |
50,789 |
|
|
$ |
35,876 |
|
Current portion of operating lease liabilities |
|
|
90,656 |
|
|
|
90,145 |
|
Current portion of finance lease liabilities |
|
|
4,001 |
|
|
|
4,011 |
|
Current installments of long-term debt |
|
|
36,795 |
|
|
|
31,512 |
|
Total Current Liabilities |
|
|
182,241 |
|
|
|
161,544 |
|
Reserve for uncertain tax positions |
|
|
902 |
|
|
|
864 |
|
Noncurrent operating lease liabilities |
|
|
166,411 |
|
|
|
219,501 |
|
Noncurrent finance lease liabilities |
|
|
21,916 |
|
|
|
23,548 |
|
Long-term debt |
|
|
367,746 |
|
|
|
336,535 |
|
Deferred income taxes, net |
|
|
80,032 |
|
|
|
72,833 |
|
Other liabilities |
|
|
37,046 |
|
|
|
19,097 |
|
Total Liabilities |
|
|
856,294 |
|
|
|
833,922 |
|
Equity: |
|
|
|
|
|
|
|
|
Common stock - Class A ( authorized; 86,337,072 and 85,713,610 shares issued and outstanding) |
|
|
863 |
|
|
|
857 |
|
Paid-in additional capital |
|
|
591,916 |
|
|
|
590,436 |
|
Accumulated deficit |
|
|
(212,491 |
) |
|
|
(243,339 |
) |
|
|
|
380,288 |
|
|
|
347,954 |
|
Accumulated other comprehensive loss |
|
|
(6,233 |
) |
|
|
(6,409 |
) |
Total Equity |
|
|
374,055 |
|
|
|
341,545 |
|
Total Liabilities and Equity |
|
$ |
1,230,349 |
|
|
$ |
1,175,467 |
|
Consolidated Statements of Operations ($ in thousands, except per share amounts) |
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Three Months Ended September 30, |
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|
Nine Months Ended September 30, |
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|
|
2020 |
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|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
||||
Shipping Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time and bareboat charter revenues |
|
$ |
89,273 |
|
|
$ |
63,491 |
|
|
$ |
264,085 |
|
|
$ |
188,619 |
|
Voyage charter revenues |
|
|
16,475 |
|
|
|
17,435 |
|
|
|
57,061 |
|
|
|
68,503 |
|
|
|
|
105,748 |
|
|
|
80,926 |
|
|
|
321,146 |
|
|
|
257,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
|
13,467 |
|
|
|
4,424 |
|
|
|
31,364 |
|
|
|
15,762 |
|
Vessel expenses |
|
|
43,044 |
|
|
|
33,993 |
|
|
|
120,456 |
|
|
|
98,960 |
|
Charter hire expenses |
|
|
22,782 |
|
|
|
22,802 |
|
|
|
67,746 |
|
|
|
67,645 |
|
Depreciation and amortization |
|
|
15,253 |
|
|
|
13,324 |
|
|
|
43,488 |
|
|
|
38,922 |
|
General and administrative |
|
|
6,140 |
|
|
|
5,288 |
|
|
|
19,915 |
|
|
|
16,917 |
|
Bad debt expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,300 |
|
(Gain)/loss on disposal of vessels and other property, including impairments, net |
|
|
(151 |
) |
|
|
36 |
|
|
|
959 |
|
|
|
87 |
|
Total operating expenses |
|
|
100,535 |
|
|
|
79,867 |
|
|
|
283,928 |
|
|
|
242,593 |
|
Income from vessel operations |
|
|
5,213 |
|
|
|
1,059 |
|
|
|
37,218 |
|
|
|
14,529 |
|
Equity in income of affiliated companies |
|
|
— |
|
|
|
156 |
|
|
|
— |
|
|
|
224 |
|
Gain on termination of pre-existing arrangement |
|
|
— |
|
|
|
— |
|
|
|
19,172 |
|
|
|
— |
|
Operating income |
|
|
5,213 |
|
|
|
1,215 |
|
|
|
56,390 |
|
|
|
14,753 |
|
Other (expense)/income, net |
|
|
(160 |
) |
|
|
375 |
|
|
|
(187 |
) |
|
|
992 |
|
Income before interest expense and income taxes |
|
|
5,053 |
|
|
|
1,590 |
|
|
|
56,203 |
|
|
|
15,745 |
|
Interest expense |
|
|
(5,902 |
) |
|
|
(6,047 |
) |
|
|
(18,143 |
) |
|
|
(19,124 |
) |
(Loss)/income before income taxes |
|
|
(849 |
) |
|
|
(4,457 |
) |
|
|
38,060 |
|
|
|
(3,379 |
) |
Income tax benefit/(expense) |
|
|
192 |
|
|
|
694 |
|
|
|
(7,212 |
) |
|
|
1,075 |
|
Net (loss)/income |
|
$ |
(657 |
) |
|
$ |
(3,763 |
) |
|
$ |
30,848 |
|
|
$ |
(2,304 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number of Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic - Class A |
|
|
89,998,301 |
|
|
|
89,375,668 |
|
|
|
89,723,751 |
|
|
|
89,210,136 |
|
Diluted - Class A |
|
|
89,998,301 |
|
|
|
89,375,668 |
|
|
|
90,727,485 |
|
|
|
89,210,136 |
|
Per Share Amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net (loss)/income - Class A |
|
$ |
(0.01 |
) |
|
$ |
(0.04 |
) |
|
$ |
0.34 |
|
|
$ |
(0.03 |
) |
Consolidated Statements of Cash Flows ($ in thousands) |
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|
|
Nine Months Ended September 30, |
|
|||||
|
|
2020 |
|
|
2019 |
|
||
|
|
(unaudited) |
|
|
(unaudited) |
|
||
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
Net income/(loss) |
|
$ |
30,848 |
|
|
$ |
(2,304 |
) |
Items included in net income not affecting cash flows: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
43,488 |
|
|
|
38,922 |
|
Bad debt expense |
|
|
— |
|
|
|
4,300 |
|
Gain on termination of pre-existing arrangement |
|
|
(19,172 |
) |
|
|
— |
|
Loss on disposal of vessels and other property, including impairments, net |
|
|
959 |
|
|
|
87 |
|
Amortization of debt discount and other deferred financing costs |
|
|
1,714 |
|
|
|
1,477 |
|
Compensation relating to restricted stock awards and stock option grants |
|
|
1,685 |
|
|
|
1,212 |
|
Deferred income tax expense/(benefit) |
|
|
7,237 |
|
|
|
(1,851 |
) |
Interest on finance lease liabilities |
|
|
1,493 |
|
|
|
941 |
|
Non-cash operating lease expense |
|
|
68,706 |
|
|
|
68,057 |
|
Loss on extinguishment of debt, net |
|
|
503 |
|
|
|
72 |
|
Distributed earnings of affiliated companies |
|
|
3,562 |
|
|
|
3,314 |
|
Payments for drydocking |
|
|
(20,819 |
) |
|
|
(11,477 |
) |
Operating lease liabilities |
|
|
(69,263 |
) |
|
|
(61,366 |
) |
Changes in operating assets and liabilities, net |
|
|
1,329 |
|
|
|
4,368 |
|
Net cash provided by operating activities |
|
|
52,270 |
|
|
|
45,752 |
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
Acquisition, net of cash acquired |
|
|
(16,973 |
) |
|
|
— |
|
Proceeds from disposals of vessels and other property |
|
|
1,407 |
|
|
|
3,404 |
|
Expenditures for vessels and vessel improvements |
|
|
(55,197 |
) |
|
|
(105,244 |
) |
Expenditures for other property |
|
|
— |
|
|
|
(1,399 |
) |
Net cash used in investing activities |
|
|
(70,763 |
) |
|
|
(103,239 |
) |
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
Payments on debt |
|
|
(35,844 |
) |
|
|
(16,667 |
) |
Extinguishment of debt |
|
|
(25,249 |
) |
|
|
(3,271 |
) |
Tax withholding on share-based awards |
|
|
(197 |
) |
|
|
(294 |
) |
Issuance of debt, net of issuance and deferred financing costs |
|
|
95,370 |
|
|
|
48,583 |
|
Payments on principal portion of finance lease liabilities |
|
|
(3,124 |
) |
|
|
(1,847 |
) |
Net cash provided by financing activities |
|
|
30,956 |
|
|
|
26,504 |
|
Net increase/(decrease) in cash, cash equivalents and restricted cash |
|
|
12,463 |
|
|
|
(30,983 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
|
41,677 |
|
|
|
80,641 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
54,140 |
|
|
$ |
49,658 |
|
Spot and Fixed TCE Rates Achieved and Revenue Days
The following tables provide a breakdown of TCE rates achieved for spot and fixed charters and the related revenue days for the three and nine months ended September 30, 2020 and the comparable period of 2019. Revenue days in the quarter ended September 30, 2020 totaled 1,874 compared with 1,735 in the prior year quarter. A summary fleet list by vessel class can be found later in this press release.
|
|
2020 |
|
|
2019 |
|
||||||||||
Three Months Ended September 30, |
|
Spot Earnings |
|
|
Fixed Earnings |
|
|
Spot Earnings |
|
|
Fixed Earnings |
|
||||
Jones Act Handysize Product Carriers: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate |
|
$ |
2,437 |
|
|
$ |
61,418 |
|
|
$ |
2,825 |
|
|
$ |
57,494 |
|
Revenue days |
|
|
67 |
|
|
|
922 |
|
|
|
184 |
|
|
|
1,009 |
|
Non-Jones Act Handysize Product Carriers: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate |
|
$ |
32,089 |
|
|
$ |
15,778 |
|
|
$ |
32,809 |
|
|
$ |
12,810 |
|
Revenue days |
|
|
184 |
|
|
|
185 |
|
|
|
92 |
|
|
|
91 |
|
ATBs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate |
|
$ |
2,786 |
|
|
$ |
29,616 |
|
|
$ |
938 |
|
|
$ |
21,507 |
|
Revenue days |
|
|
60 |
|
|
|
86 |
|
|
|
14 |
|
|
|
166 |
|
Lightering: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate |
|
$ |
79,214 |
|
|
$ |
— |
|
|
$ |
56,923 |
|
|
$ |
— |
|
Revenue days |
|
|
94 |
|
|
|
— |
|
|
|
179 |
|
|
|
— |
|
Alaska (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate |
|
$ |
— |
|
|
$ |
58,669 |
|
|
$ |
— |
|
|
$ |
— |
|
Revenue days |
|
|
— |
|
|
|
276 |
|
|
|
— |
|
|
|
— |
|
|
|
2020 |
|
|
2019 |
|
||||||||||
Nine Months Ended September 30, |
|
Spot Earnings |
|
|
Fixed Earnings |
|
|
Spot Earnings |
|
|
Fixed Earnings |
|
||||
Jones Act Handysize Product Carriers: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate |
|
$ |
34,806 |
|
|
$ |
60,999 |
|
|
$ |
20,635 |
|
|
$ |
57,192 |
|
Revenue days |
|
|
248 |
|
|
|
3,061 |
|
|
|
431 |
|
|
|
2,950 |
|
Non-Jones Act Handysize Product Carriers: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate |
|
$ |
29,137 |
|
|
|
16,434 |
|
|
$ |
25,213 |
|
|
$ |
12,319 |
|
Revenue days |
|
|
494 |
|
|
|
548 |
|
|
|
303 |
|
|
|
242 |
|
ATBs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate |
|
$ |
17,244 |
|
|
$ |
27,119 |
|
|
$ |
18,573 |
|
|
$ |
21,565 |
|
Revenue days |
|
|
277 |
|
|
|
175 |
|
|
|
188 |
|
|
|
685 |
|
Lightering: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate |
|
$ |
59,145 |
|
|
$ |
61,012 |
|
|
$ |
65,984 |
|
|
$ |
— |
|
Revenue days |
|
|
337 |
|
|
|
87 |
|
|
|
529 |
|
|
|
— |
|
Alaska (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate |
|
$ |
— |
|
|
$ |
58,643 |
|
|
$ |
— |
|
|
$ |
— |
|
Revenue days |
|
|
— |
|
|
|
605 |
|
|
|
— |
|
|
|
— |
|
(a) Excludes one Alaska vessel currently in layup.
Fleet Information
As of September 30, 2020, OSG’s operating fleet consisted of 24 vessels, 12 of which were owned, with the remaining vessels chartered-in. Vessels chartered-in are on Bareboat Charters.
|
|
Vessels Owned |
|
|
Vessels Chartered- In |
|
|
Total at September 30, 2020 |
|
|||||||
Vessel Type |
|
Number |
|
|
Number |
|
|
Total Vessels |
|
|
Total dwt (3) |
|
||||
Handysize Product Carriers (1) |
|
|
6 |
|
|
|
11 |
|
|
|
17 |
|
|
|
810,825 |
|
Crude Oil Tankers (2) |
|
|
3 |
|
|
|
1 |
|
|
|
4 |
|
|
|
772,194 |
|
Refined Product ATBs |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
27,091 |
|
Lightering ATBs |
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
|
|
91,112 |
|
Total Operating Fleet |
|
|
12 |
|
|
|
12 |
|
|
|
24 |
|
|
|
1,701,222 |
|
|
(1) |
Includes two owned shuttle tankers, 11 chartered-in tankers, two non-Jones Act MR tankers that participate in the U.S. Maritime Security Program, all of which are U.S. flagged, as well as two owned Marshall Island flagged non-Jones Act MR tankers trading in international markets. |
|
|
(2) |
Includes three crude oil tankers doing business in Alaska and one crude oil tanker bareboat chartered-in and in layup. |
|
|
(3) |
Total dwt is defined as aggregate deadweight tons for all vessels of that type. |
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 provide 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) 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. TCE 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 follows:
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Time charter equivalent revenues |
|
$ |
92,281 |
|
|
$ |
76,502 |
|
|
$ |
289,782 |
|
|
$ |
241,360 |
|
Add: Voyage expenses |
|
|
13,467 |
|
|
|
4,424 |
|
|
|
31,364 |
|
|
|
15,762 |
|
Shipping revenues |
|
$ |
105,748 |
|
|
$ |
80,926 |
|
|
$ |
321,146 |
|
|
$ |
257,122 |
|
Vessel Operating Contribution
Vessel operating contribution, a non-GAAP measure, is TCE revenues minus vessel expenses and charter hire expenses.
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
($ in thousands) |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Niche Market Activities |
|
$ |
22,091 |
|
|
$ |
20,435 |
|
|
$ |
61,513 |
|
|
$ |
63,786 |
|
Jones Act Handysize Tankers |
|
|
(4,178 |
) |
|
|
(1,590 |
) |
|
|
18,134 |
|
|
|
3,555 |
|
ATBs |
|
|
343 |
|
|
|
862 |
|
|
|
3,323 |
|
|
|
7,414 |
|
Alaska Crude Oil Tankers |
|
|
8,199 |
|
|
|
— |
|
|
|
18,610 |
|
|
|
— |
|
Vessel Operating Contribution |
|
|
26,455 |
|
|
|
19,707 |
|
|
|
101,580 |
|
|
|
74,755 |
|
Depreciation and amortization |
|
|
15,253 |
|
|
|
13,324 |
|
|
|
43,488 |
|
|
|
38,922 |
|
General and administrative |
|
|
6,140 |
|
|
|
5,288 |
|
|
|
19,915 |
|
|
|
16,917 |
|
Bad debt expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,300 |
|
(Gain)/loss on disposal of vessels and other property, including impairments, net |
|
|
(151 |
) |
|
|
36 |
|
|
|
959 |
|
|
|
87 |
|
Equity in income of affiliated companies |
|
|
— |
|
|
|
156 |
|
|
|
— |
|
|
|
224 |
|
Gain on termination of pre-existing arrangement |
|
|
— |
|
|
|
— |
|
|
|
19,172 |
|
|
|
— |
|
Operating income |
|
$ |
5,213 |
|
|
$ |
1,215 |
|
|
$ |
56,390 |
|
|
$ |
14,753 |
|
(B) EBITDA and Adjusted EBITDA
EBITDA represents net income/(loss) before interest expense, income taxes and depreciation and amortization expense. Adjusted EBITDA consists of EBITDA adjusted to exclude amortization classified in charter hire expenses, interest expense classified in charter hire expenses, loss/(gain) on disposal of vessels and other property, including impairments, net, non-cash stock based compensation expense and loss on repurchases and extinguishment of debt and the impact of other 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/(loss) 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 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 measures used by other companies due to differences in methods of calculation. The following table reconciles net income/(loss) as reflected in the consolidated statements of operations, to EBITDA and Adjusted EBITDA.
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
($ in thousands) |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Net (loss)/income |
|
$ |
(657 |
) |
|
$ |
(3,763 |
) |
|
$ |
30,848 |
|
|
$ |
(2,304 |
) |
Income tax (benefit)/expense |
|
|
(192 |
) |
|
|
(694 |
) |
|
|
7,212 |
|
|
|
(1,075 |
) |
Interest expense |
|
|
5,902 |
|
|
|
6,047 |
|
|
|
18,143 |
|
|
|
19,124 |
|
Depreciation and amortization |
|
|
15,253 |
|
|
|
13,324 |
|
|
|
43,488 |
|
|
|
38,922 |
|
EBITDA |
|
|
20,306 |
|
|
|
14,914 |
|
|
|
99,691 |
|
|
|
54,667 |
|
Amortization classified in charter hire expenses |
|
|
143 |
|
|
|
231 |
|
|
|
428 |
|
|
|
692 |
|
Interest expense classified in charter hire expenses |
|
|
368 |
|
|
|
398 |
|
|
|
1,117 |
|
|
|
1,202 |
|
Non-cash stock based compensation expense |
|
|
631 |
|
|
|
450 |
|
|
|
1,685 |
|
|
|
1,212 |
|
(Gain)/loss on disposal of vessels and other property, including impairments, net |
|
|
(151 |
) |
|
|
36 |
|
|
|
959 |
|
|
|
87 |
|
Loss on extinguishment of debt, net |
|
|
488 |
|
|
|
24 |
|
|
|
503 |
|
|
|
72 |
|
Adjusted EBITDA |
|
$ |
21,785 |
|
|
$ |
16,053 |
|
|
$ |
104,383 |
|
|
$ |
57,932 |
|
(C) Total Cash
($ in thousands) |
|
September 30, 2020 |
|
|
December 31, 2019 |
|
||
Cash and cash equivalents |
|
$ |
54,018 |
|
|
$ |
41,503 |
|
Restricted cash - current |
|
|
49 |
|
|
|
60 |
|
Restricted cash – non-current |
|
|
73 |
|
|
|
114 |
|
Total Cash |
|
$ |
54,140 |
|
|
$ |
41,677 |
|
Category: Earnings.
