UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
Date of Report: February 18, 2016
Commission file number 1-33867
TEEKAY
TANKERS LTD.
(Exact name of Registrant as specified in its charter)
4th Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08, Bermuda
(Address of principal executive offices)
Indicate by
check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1).
Yes ¨ No
x
Indicate by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(7).
Yes ¨ No
x
Item 1 Information Contained in this Form 6-K Report
Attached as Exhibit 1 is a copy of an announcement of Teekay Tankers Ltd. dated February 18, 2016.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
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TEEKAY TANKERS LTD. |
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Date: February 18, 2016 |
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By: |
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/s/ Vincent Lok |
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Vincent Lok |
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Chief Financial Officer |
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(Principal Financial and Accounting Officer) |
Exhibit 1
TEEKAY TANKERS LTD. REPORTS
FOURTH QUARTER AND ANNUAL 2015 RESULTS
Highlights
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Reported fourth quarter 2015 adjusted net income attributable to shareholders(1) of $48.5
million, or $0.31 per share, compared to $18.6 million, or $0.21 per share, in the same period of the prior year. |
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Reported fiscal year 2015 adjusted net income attributable to shareholders of $169.1 million, or $1.29 per share, compared to $33.9 million, or
$0.39 per share, in the same period of the prior year. |
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Generated fourth quarter 2015 free cash flow(2) of $74.0 million, or $0.48 per share, compared
to $31.7 million, or $0.35 per share, in the same period of the prior year. |
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Announced and implemented new variable dividend policy; declared and paid cash dividend of $0.12 per share for the fourth quarter of 2015, up from
$0.03 per share in the previous quarter. |
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Acquired two purpose-built Lightering Aframax tankers for an aggregate purchase price of approximately $80 million. |
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In January 2016, refinanced a majority of the Companys fleet with a new five-year $900 million debt facility. |
Hamilton, Bermuda, February 18, 2016 - Teekay Tankers Ltd. (Teekay Tankers or the Company) (NYSE: TNK) today
reported adjusted net income attributable to its shareholders(1) of $48.5 million, or $0.31 per share, for the quarter ended December 31, 2015, compared to $18.6 million, or $0.21 per share,
for the same period in the prior year. The increase is primarily due to stronger spot tanker rates in the fourth quarter of 2015 compared to the same period in the prior year and an increase in fleet size related to the acquisition of 17 modern,
mid-size tankers during 2015 and the expansion of the Companys chartered-in tanker portfolio in 2014 and 2015. Adjusted net income attributable to shareholders excludes a number of specific items that had the net effect of increasing net
income attributable to shareholders by $3.9 million, or $0.03 per share, and by $1.7 million, or $0.01 per share, for the three months ended December 31, 2015 and 2014, respectively, as detailed in Appendix A to this release. Including
these items, the Company reported, on a GAAP basis, net income attributable to its shareholders of $52.5 million, or $0.34 per share, and $20.3 million, or $0.22 per share, for the three months ended December 31, 2015 and 2014, respectively.
Net revenues(3) were $159.3 million and $77.4 million for the three months ended December 31, 2015 and 2014, respectively.
During the fourth quarter of 2015, the Company generated $74.0 million, or $0.48 per share, of free cash flow(2), compared to $31.7 million, or $0.35 per share, in the fourth quarter of 2014, with the increase due to higher average spot rates earned and an increase in the size of the Companys fleet. On
December 14, 2015, Teekay Tankers declared a dividend of $0.12 per share for the fourth quarter of 2015, which was paid on February 12, 2016 to all shareholders of record on February 2, 2016. Since the Companys inception, it has
declared dividends in 33 consecutive quarters.
(1) |
Adjusted net income attributable to shareholders of Teekay Tankers is a non-GAAP financial measure. Please refer to Appendix A to this
release for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable financial measure under United States generally accepted accounting principles (GAAP) and for information about specific items
affecting net income that are typically excluded by securities analysts in their published estimates of the Companys financial results. |
(2) |
Free cash flow (FCF) represents net income, plus depreciation and amortization, unrealized losses from derivatives, non-cash items, FCF from
the equity accounted investments and any write-offs or other non-recurring items, less unrealized gains from derivatives, equity income from the equity accounted investments, net income attributable to the Entities under Common Control and other
non-cash items. Please refer to Appendix B to this release for a reconciliation of free cash flow (a non-GAAP measure) as used in this release to the most directly comparable GAAP financial measure. |
(3) |
Net revenues is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. Please refer to
Appendix C included in this release for a reconciliation of this non-GAAP measure to the most directly comparable financial measure under GAAP. |
Teekay Tankers Ltd. Investor Relations Tel: +1 604 844-6654 www.teekaytankers.com
4th Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08, Bermuda
CEO Commentary
During the quarter, Teekay Tankers generated strong free cash flow of $74.0 million, or $0.48 per share, recording one of Teekay
Tankers strongest quarters ever, commented Kevin Mackay, Teekay Tankers Chief Executive Officer. In addition, we announced and implemented our new dividend policy, under which we intend to pay out to our shareholders 30
to 50 percent of the Companys quarterly adjusted net income, while maintaining a minimum quarterly dividend of $0.03 per share. This resulted in a 300 percent increase in our quarterly cash dividend to $0.12 per share for the fourth quarter of
2015. The new dividend policy provides long-term investors the opportunity to directly benefit from the Companys strong earnings while continuing to de-lever our balance sheet, which increases the Companys net asset value and
further strengthens our financial position.
We are also pleased to announce the acquisition of two modern purpose-built
Lightering Aframax tankers in December 2015, which complements our recent ship-to-ship transfer acquisition of SPT Inc. and further expands our strategic presence in the U.S. Gulf.
Mr. Mackay continued, We expect that many of the positive tanker market fundamentals in 2015 will remain in place during 2016,
including growing oil demand, high crude oil supply from OPEC, low oil prices, manageable tanker supply growth, ongoing strategic and commercial oil stockpiling, and high refinery throughput. In addition, we expect the recent approval of U.S.
crude exports will result in the development of new trade routes and positive demand growth for mid-sized tankers, directly benefiting Teekay Tankers as the worlds largest owner and operator in this segment. As well as the expected rise
over time of U.S. exports to Europe and Asia via the expanded Panama Canal, which is scheduled to be completed in June 2016, the lifting of the export ban and the resultant narrowing of the WTI/Brent crude oil spread could give rise to increased
imports into the U.S. An increase in both U.S. imports and exports of oil is expected to drive demand for mid-size tankers and ship-to-ship transfer services.
Mr. Mackay added With an owned and chartered-in fleet of approximately 55 modern mid-size tankers and the recent completion of two
key financial initiatives, including our new $900 million long-term debt facility and our new dividend policy, we believe Teekay Tankers and its shareholders are well-positioned to benefit from what we anticipate to be a continued strong tanker
market.
Summary of Recent Developments
New
Dividend Policy
In December 2015, Teekay Tankers announced a new dividend policy under which the Company intends to pay out 30 to 50
percent of its quarterly adjusted net income, with a minimum quarterly dividend of $0.03 per share, subject to any reserves determined to be required by the Companys Board of Directors. The new dividend policy will provide investors the
opportunity to participate in earnings from the tanker market while enabling the Company to continue to de-lever its balance sheet. Teekay Tankers implemented this new dividend policy for the fourth quarter of 2015, increasing its quarterly cash
dividend to $0.12 per share, which was paid on February 12, 2016.
Expanding Strategic Presence in U.S. Gulf
During the fourth quarter, Teekay Tankers built on its recent ship-to-ship transfer acquisition of SPT Inc. and expanded its U.S. Gulf presence
through the acquisition and chartering-in of three purpose-built Lightering Aframax tankers. On December 18, 2015, the Company acquired two Lightering Aframax tankers, the SPT Explorer and Navigator Spirit, from Teekay Offshore
Partners L.P. (Teekay Offshore) for an aggregate purchase price of $80 million and chartered-in for five years another Lightering Aframax tanker, which is scheduled to deliver between February and March 2016. The acquisition was fully
financed through the assumption of an approximately $50 million revolving credit facility from Teekay Offshore and the Companys existing liquidity. These transactions are expected to be immediately accretive to Teekay Tankers earnings
and free cash flow per share.
2
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New Debt Facility
In January 2016, Teekay Tankers completed a new five-year $900 million long-term debt facility, which was 1.4 times oversubscribed. The new
facility includes term loan and revolving credit facility components which were used to refinance 36 of the Companys existing vessels (including 17 vessels acquired during 2015 that were financed with two bridge loan facilities that matured in
early-2016, and other vessels previously financed with the Companys primary revolving credit facility which was scheduled to mature in 2017). This new facility extends the Companys debt maturity profile and provides financial flexibility
in the future.
Tanker Market
The tanker
market in 2015 was the strongest since 2008. The main catalyst for the market strength was continued high levels of global oil production, including an extra 1.0 million barrels per day (mb/d) of crude oil supply from OPEC. Global oil
demand was also robust in 2015, growing by 1.7 mb/d, the highest level of growth since the post-financial crisis rebound in 2010. Oil prices fell in 2015 to the lowest average price in 11 years, which was positive for the tanker market as it led to
higher refinery throughput to take advantage of strong refining margins, increased commercial and strategic stockpiling of oil, and lower bunker fuel costs for ship owners. Finally, tanker fleet growth remained low with just 2 percent growth in the
crude tanker fleet during 2015.
The fourth quarter of 2015 was particularly strong, led by the large crude tanker sectors. This strength
was driven by firm underlying fundamentals coupled with seasonal and one-off factors. The fourth quarter saw the onset of winter weather delays, including an increase in transit time through the Turkish Straits and fog in the US Gulf. Ullage-related
delays resulted in increased waiting times at discharge ports due to logistical constraints, which further added to rate volatility during the fourth quarter.
Looking ahead, the Company anticipates that many of the positive fundamentals which existed in 2015 will continue during 2016. Global oil
demand is forecast to grow by 1.3 mb/d in 2016 (based on the average of IEA, EIA, and OPEC forecasts). While this is a decrease from 2015 oil demand growth of 1.7 mb/d, it is above the average growth rate of 1.0 mb/d over the last decade. Global oil
production is anticipated to remain high with no change to OPEC policy expected in 2016. In addition, the return of Iranian production is projected to add up to 0.5 mb/d of supply in 2016, further increasing global crude oil exports and keeping oil
prices relatively low. Finally, while tanker fleet growth is set to increase in 2016, the tanker fleet growth is relatively modest for the mid-size sectors with anticipated tanker fleet growth of 4.5 percent and 4.0 percent in the Suezmax and
Aframax/LR2 fleets, respectively, which compares favorably to the average fleet growth in the last decade of approximately 5.0 percent per annum. Furthermore, the fleet growth is weighted towards the second half of the year and thus, the full impact
should be felt more in 2017 than in 2016.
In addition to positive supply and demand fundamentals, changing trade patterns are expected to
benefit the mid-size tanker sectors in 2016. Although it is not expected to immediately translate into an influx of U.S. crude oil into global markets, the relaxation of the U.S. crude oil export ban is already resulting in an increase in European
and West African imports to the U.S. Atlantic coast. The spread between the West Texas Intermediate (WTI) and Brent oil price has narrowed enough to make seaborne transportation of oil to the U.S. more economical than rail or truck
transportation within the U.S. from domestic producers. Mid-sized tanker markets could also benefit from the expansion of the Panama Canal, which is scheduled to be completed in June 2016, as it will facilitate trade movements between the Atlantic
and the Pacific, including crude and condensate exports from the U.S. Gulf to Asian markets.
Overall, the Company expects that 2016 will
be a strong year for crude tanker fundamentals driven by high levels of global oil supply, rising oil demand, low oil prices, changing trade routes, and a manageable level of fleet growth.
3
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Operating Results
The following table highlights the operating performance of the Companys time-charter vessels and spot vessels trading in pools measured
in net voyage revenue per revenue day, or time-charter equivalent (TCE) rates, before related-party pool management fees, related-party commissions and off-hire bunker expenses:
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Three Months Ended |
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December 31, 2015(v) |
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September 30, 2015(v) |
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December 31, 2014(v) |
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Time Charter-Out Fleet |
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Suezmax revenue days |
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350 |
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133 |
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130 |
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Suezmax TCE per revenue day(i) |
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$ |
28,035 |
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$ |
33,646 |
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$ |
20,326 |
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Aframax revenue days |
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645 |
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642 |
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658 |
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Aframax TCE per revenue day |
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$ |
20,409 |
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$ |
19,528 |
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$ |
17,662 |
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LR2 revenue days |
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92 |
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83 |
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LR2 TCE per revenue day |
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$ |
25,721 |
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$ |
25,515 |
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MR revenue days |
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92 |
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MR TCE per revenue day(ii) |
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$ |
37,352 |
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Spot Fleet |
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Suezmax revenue days |
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1,415 |
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818 |
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783 |
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Suezmax spot TCE per revenue day(iii) |
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$ |
41,430 |
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$ |
34,782 |
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$ |
26,627 |
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Aframax revenue days |
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1,399 |
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1,177 |
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789 |
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Aframax spot TCE per revenue day(iv) |
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$ |
31,575 |
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$ |
32,269 |
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$ |
25,677 |
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LR2 revenue days |
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522 |
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773 |
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644 |
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LR2 spot TCE per revenue day |
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$ |
26,468 |
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$ |
33,555 |
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$ |
21,884 |
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MR revenue days |
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233 |
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276 |
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184 |
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MR spot TCE per revenue day |
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$ |
19,391 |
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$ |
23,782 |
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$ |
17,109 |
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Total Fleet |
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Suezmax revenue days |
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1,765 |
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951 |
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913 |
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Suezmax TCE per revenue day |
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$ |
39,178 |
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$ |
34,617 |
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$ |
25,727 |
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Aframax revenue days |
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2,044 |
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1,819 |
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1,447 |
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Aframax TCE per revenue day |
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$ |
26,228 |
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$ |
25,926 |
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$ |
22,146 |
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LR2 revenue days |
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614 |
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856 |
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644 |
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LR2 TCE per revenue day |
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$ |
26,356 |
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$ |
32,777 |
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$ |
21,884 |
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MR revenue days |
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233 |
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276 |
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276 |
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MR TCE per revenue day(ii) |
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$ |
19,391 |
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$ |
23,782 |
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$ |
23,857 |
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(i) |
The fixed TCE rate for the Suezmax tankers excludes the amortization of in-process contracts which is recognized in revenue. For the three months
ended December 31, 2015, the fixed TCE rate including the amortization of in-process revenue contracts is $33,368 per day. |
(ii) |
The charter rate on the Medium Range (MR) tanker includes approximately $14,000 per day for the additional costs relating to Australian crew
versus international crew. |
(iii) |
The combined average spot TCE rates for the Suezmax tankers trading in both the Gemini Suezmax pool and non-pool voyage charters were $41,933 per
day and $34,774 per day for the three months ended December 31, 2015 and September 30, 2015, respectively. |
(iv) |
The combined average spot TCE rates for the Aframax tankers trading in both the Aframax Pools and non-pool voyage charters were $28,913 per day,
$29,417 per day and $25,881 day for the three months ended December 31, 2015, September 30, 2015 and December 31, 2014, respectively. |
(v) |
The TCE rates in the table above include the results of two conventional tankers acquired from Teekay Offshore from the date of their acquisition
in December 2015. |
4
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Teekay Tankers Fleet
The following table summarizes the Companys fleet as of February 5, 2016 (including a committed chartered-in vessel yet to be
delivered):
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Owned Vessels |
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Chartered-in Vessels |
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Total |
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Fixed-rate: |
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Suezmax Tankers |
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3 |
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3 |
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Aframax Tankers |
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7 |
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7 |
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LR2 Product Tankers |
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1 |
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1 |
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VLCC Tanker(i) |
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1 |
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1 |
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Total Fixed-Rate Fleet |
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11 |
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1 |
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12 |
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Spot-rate: |
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Suezmax Tankers |
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19 |
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19 |
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Aframax Tankers(ii) |
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7 |
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10 |
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17 |
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LR2 Product Tankers(iii) |
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7 |
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1 |
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8 |
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MR Product Tankers |
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2 |
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2 |
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Total Spot Fleet |
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35 |
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11 |
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46 |
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STS Support Vessels |
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6 |
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6 |
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Total Teekay Tankers Fleet |
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52 |
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12 |
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64 |
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(i) |
The Companys ownership interest in this vessel is 50 percent. |
(ii) |
Includes nine Aframax tankers with charter-in contracts that are scheduled to expire between March 2016 and September 2017 and one chartered-in
Aframax tanker that is scheduled to deliver between February and March 2016 under a contract that expires in March 2021; three of these charter-in vessel contracts include options to extend. |
(iii) |
Includes one LR2 product tanker with a charter-in contract that is scheduled to expire in May 2017. |
Liquidity and Continuous Offering Program Update
In November 2015, the Company implemented a new continuous offering program (COP) under which the Company may issue new common shares at
market prices up to a maximum aggregate amount of $80 million. During the fourth quarter of 2015, the Company sold an aggregate of 2,045,000 common shares under the COP at an average price of $7.14 per share, generating net proceeds of approximately
$14.3 million.
As of December 31, 2015, the Company had total liquidity of $111.0 million (comprised of $96.4 million in cash and
cash equivalents and $14.6 million in undrawn revolving credit facilities), compared to total liquidity of $206.2 million as at September 30, 2015. The decrease in the Companys liquidity position during the fourth quarter was primarily
due to vessel acquisitions, a scheduled amortization on one of the Companys corporate revolving credit facilities, drydocking costs, and working capital timing differences.
5
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Conference Call
The Company plans to host a conference call on Friday, February 19, 2016 at 11:00 a.m. (ET) to discuss its results for the fourth quarter
and fiscal year of 2015 and the Companys business outlook. An accompanying investor presentation will be available on Teekay Tankers website at www.teekaytankers.com prior to the start of the call. All shareholders and interested
parties are invited to listen to the live conference call by choosing from the following options:
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By dialing (800) 524-8850 or (416) 204-9702, if outside of North America, and quoting conference ID code 8972345. |
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By accessing the webcast, which will be available on Teekay Tankers website at www.teekaytankers.com (the archive will remain on the
website for a period of 30 days). |
The conference call will be recorded and available until Friday, March 4, 2016.
This recording can be accessed following the live call by dialing (888) 203-1112 or (647) 436-0148, if outside North America, and entering access code 8972345.
About Teekay Tankers
Teekay Tankers currently
owns a fleet of 45 double-hull tankers, including 22 Suezmax tankers, 14 Aframax tankers, 7 Long Range 2 (LR2) product tankers and 2 Medium-Range (MR) product tankers, and has 12 contracted time charter-in tankers. Teekay Tankers
vessels are employed through a mix of short- or medium-term fixed rate time charter contracts and spot tanker market trading. The Company also owns a Very Large Crude Carrier (VLCC) through a 50 percent-owned joint venture. In addition,
Teekay Tankers owns a ship-to-ship transfer business and a minority interest of approximately 10 percent in Tanker Investments Ltd. (OSE: TIL), which currently owns a fleet of 18 modern tankers. Teekay Tankers was formed in December 2007 by Teekay
Corporation as part of its strategy to expand its conventional oil tanker business.
Teekay Tankers common stock trades on the New
York Stock Exchange under the symbol TNK.
For Investor Relations
enquiries contact:
Ryan Hamilton
Tel: +1 (604) 844-6654
Website:
www.teekaytankers.com
6
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Teekay Tankers Ltd.
Summary Consolidated Statements of Income
(in thousands of U.S.
dollars, except share and per share data)
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Three Months Ended |
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Year Ended |
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December 31, |
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September 30, |
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December 31, |
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December 31, |
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December 31, |
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2015 |
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2015 |
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2014 |
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2015 |
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2014 |
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(unaudited)(1) |
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(unaudited)(1) |
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(unaudited)(1) |
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(unaudited)(1) |
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(unaudited)(1) |
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Net pool revenues |
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107,073 |
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92,022 |
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56,302 |
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370,583 |
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138,631 |
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Time charter revenues |
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26,988 |
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20,339 |
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21,434 |
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75,375 |
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94,213 |
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Voyage charter revenues |
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20,956 |
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5,502 |
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1,826 |
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41,283 |
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|
8,040 |
|
Interest income from investment in term loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,118 |
|
Other revenues(2) |
|
|
13,969 |
|
|
|
8,538 |
|
|
|
|
|
|
|
26,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
168,986 |
|
|
|
126,401 |
|
|
|
79,562 |
|
|
|
514,193 |
|
|
|
250,002 |
|
|
|
|
|
|
|
Voyage expenses |
|
|
(9,652 |
) |
|
|
(2,653 |
) |
|
|
(2,128 |
) |
|
|
(19,816 |
) |
|
|
(11,223 |
) |
Vessel operating expenses |
|
|
(50,079 |
) |
|
|
(35,267 |
) |
|
|
(25,279 |
) |
|
|
(137,164 |
) |
|
|
(98,403 |
) |
Time-charter hire expense |
|
|
(21,720 |
) |
|
|
(21,382 |
) |
|
|
(13,687 |
) |
|
|
(74,898 |
) |
|
|
(22,160 |
) |
Depreciation and amortization |
|
|
(25,414 |
) |
|
|
(17,878 |
) |
|
|
(13,559 |
) |
|
|
(73,760 |
) |
|
|
(53,292 |
) |
General and administrative expenses |
|
|
(6,362 |
) |
|
|
(4,310 |
) |
|
|
(2,932 |
) |
|
|
(17,354 |
) |
|
|
(12,821 |
) |
Gain on sale of vessels(3) |
|
|
771 |
|
|
|
|
|
|
|
|
|
|
|
771 |
|
|
|
9,955 |
|
Restructuring charges(2) |
|
|
|
|
|
|
(327 |
) |
|
|
|
|
|
|
(4,772 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
56,530 |
|
|
|
44,584 |
|
|
|
21,977 |
|
|
|
187,200 |
|
|
|
62,058 |
|
|
|
|
|
|
|
Interest expense |
|
|
(7,730 |
) |
|
|
(4,008 |
) |
|
|
(2,182 |
) |
|
|
(17,389 |
) |
|
|
(9,128 |
) |
Interest income |
|
|
40 |
|
|
|
28 |
|
|
|
40 |
|
|
|
107 |
|
|
|
287 |
|
Realized and unrealized gain (loss) on derivative instruments(4) |
|
|
498 |
|
|
|
(1,031 |
) |
|
|
(189 |
) |
|
|
(1,597 |
) |
|
|
(1,712 |
) |
Equity income(5) |
|
|
5,480 |
|
|
|
2,762 |
|
|
|
1,007 |
|
|
|
14,411 |
|
|
|
5,228 |
|
Other (expense) income |
|
|
(1,259 |
) |
|
|
(1,385 |
) |
|
|
492 |
|
|
|
(3,097 |
) |
|
|
3,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
53,559 |
|
|
|
40,950 |
|
|
|
21,145 |
|
|
|
179,635 |
|
|
|
60,538 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to shareholders of Teekay Tankers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic |
|
|
0.34 |
|
|
|
0.31 |
|
|
|
0.23 |
|
|
|
1.36 |
|
|
|
0.67 |
|
- Diluted |
|
|
0.34 |
|
|
|
0.30 |
|
|
|
0.22 |
|
|
|
1.35 |
|
|
|
0.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of total common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic |
|
|
154,477,604 |
|
|
|
134,630,768 |
|
|
|
89,736,138 |
|
|
|
130,136,228 |
|
|
|
85,882,685 |
|
- Diluted |
|
|
155,096,187 |
|
|
|
135,174,756 |
|
|
|
90,214,327 |
|
|
|
130,717,709 |
|
|
|
86,247,137 |
|
(1) |
The Company acquired two vessels on December 18, 2015 from Teekay Offshore, which is controlled by Teekay Corporation. Results for the two
conventional tankers for the periods prior to their acquisitions by the Company when they were owned and operating under the control of Teekay Corporation, are referred to as the Entities under Common Control and periods prior to their
acquisitions have been recast to include their results in accordance with Common Control accounting as required under GAAP. The Entities under Common Control amounts included in the financial results are summarized for the respective periods in
Appendix A. The amounts included in this release related to the Entities under Common Controls are preliminary, and will be finalized for inclusion in the Companys Annual Report on Form 20-F for the year ended December 31, 2015.
Any revisions to the preliminary Entities under Common Control figures are only expected to impact the accounting for the periods prior to the date the vessels were acquired by the Company, and therefore will have no effect on the adjusted net
income attributable to the shareholders or free cash flow of the Company for any period, including the fourth quarter of 2015. |
7
- more -
(2) |
Other revenues includes ship-to-ship transfer business revenue and the associated 100 percent reimbursement of the Hugli Spirit redundancy
cost from a customer. During the three months ended September 30, 2015, the Company incurred $0.3 million of restructuring costs related to the acquisition of the
ship-to-ship transfer business. During the year ended December 31, 2015, the Company incurred $4.7 million of restructuring charges, of which $4.4 million relates
to redundancy costs in connection with the termination of Australian seafarers of the Hugli Spirit upon the completion of the contract with its customer during the three months ended March 31, 2015. |
(3) |
In early-May 2014, the Company sold to Tanker Investments Ltd. (TIL) two wholly-owned subsidiaries, each of which owns one VLCC, for aggregate proceeds of $154.0 million plus related working capital on closing of $1.7 million, resulting in the recognition of a $10 million gain.
|
(4) |
Includes realized losses relating to interest rate swaps that relate to amounts actually paid by the Company of $2.3 million, $2.5 million and $2.5
million for the three months ended December 31, 2015, September 30, 2015 and December 31, 2014, respectively, and $9.7 million and $10.0 million for the years ended December 31, 2015 and December 31, 2014, respectively.
|
(5) |
Included in equity income are the Companys proportionate share of earnings from its investment in TIL, which owned 20 conventional tankers at
December 31, 2015, its 50 percent interest in the High-Q joint venture (High-Q), which owns one VLCC tanker, and its 50 percent interest in Teekay Tanker Operations Ltd (TTOL), which owns
Teekay Corporations conventional tanker commercial and technical management operations. |
Components
of equity income are detailed in the table below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year ended |
|
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
|
2015 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
High-Q Joint Venture |
|
|
1,182 |
|
|
|
663 |
|
|
|
929 |
|
|
|
3,218 |
|
|
|
2,702 |
|
Tanker Investments Ltd. |
|
|
2,783 |
|
|
|
1,083 |
|
|
|
250 |
|
|
|
7,280 |
|
|
|
(184 |
) |
Dilution gain in respect of the Initial Public Offering of Tanker Investments Ltd. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,054 |
|
Teekay Tanker Operations Ltd. |
|
|
1,515 |
|
|
|
1,016 |
|
|
|
(172 |
) |
|
|
3,913 |
|
|
|
656 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity income |
|
|
5,480 |
|
|
|
2,762 |
|
|
|
1,007 |
|
|
|
14,411 |
|
|
|
5,228 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
- more -
Teekay Tankers Ltd.
Summary Consolidated Balance Sheets
(in thousands of U.S.
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at |
|
|
As at |
|
|
As at |
|
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
|
2015 |
|
|
2015 |
|
|
2014 |
|
|
|
(unaudited)(1) |
|
|
(unaudited)(1) |
|
|
(unaudited)(1) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
96,417 |
|
|
|
80,579 |
|
|
|
162,797 |
|
Restricted cash |
|
|
870 |
|
|
|
915 |
|
|
|
|
|
Pool receivable from affiliates |
|
|
62,735 |
|
|
|
36,114 |
|
|
|
35,254 |
|
Accounts receivable |
|
|
28,313 |
|
|
|
22,791 |
|
|
|
4,475 |
|
Prepaid assets |
|
|
24,320 |
|
|
|
30,379 |
|
|
|
9,374 |
|
Due from affiliates |
|
|
67,159 |
|
|
|
50,214 |
|
|
|
50,279 |
|
Vessel held for sale |
|
|
|
|
|
|
10,092 |
|
|
|
|
|
Vessels and equipment - net |
|
|
1,767,925 |
|
|
|
1,656,084 |
|
|
|
897,237 |
|
Investment in and advances to equity accounted investments |
|
|
86,808 |
|
|
|
81,328 |
|
|
|
73,397 |
|
Derivative asset(2) |
|
|
5,164 |
|
|
|
5,421 |
|
|
|
4,657 |
|
Intangible assets - net |
|
|
29,619 |
|
|
|
30,391 |
|
|
|
|
|
Other non-current assets |
|
|
146 |
|
|
|
10,565 |
|
|
|
3,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
2,169,476 |
|
|
|
2,014,873 |
|
|
|
1,241,172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
|
78,746 |
|
|
|
55,267 |
|
|
|
20,220 |
|
Current portion of long-term debt |
|
|
163,776 |
|
|
|
479,133 |
|
|
|
46,605 |
|
Current portion of derivative liabilities |
|
|
6,330 |
|
|
|
6,034 |
|
|
|
7,263 |
|
Current portion of in-process revenue contracts |
|
|
1,223 |
|
|
|
2,143 |
|
|
|
|
|
Deferred revenue |
|
|
2,676 |
|
|
|
|
|
|
|
637 |
|
Due to affiliates |
|
|
26,630 |
|
|
|
4,679 |
|
|
|
10,395 |
|
Long-term debt |
|
|
1,000,829 |
|
|
|
589,334 |
|
|
|
661,960 |
|
Other long-term liabilities |
|
|
11,805 |
|
|
|
14,176 |
|
|
|
15,814 |
|
Equity |
|
|
877,461 |
|
|
|
864,107 |
|
|
|
478,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
|
2,169,476 |
|
|
|
2,014,873 |
|
|
|
1,241,172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
In accordance with GAAP, the balance sheets as at December 31, 2015, September 30, 2015 and December 31, 2014 include the
Entities under Common Control for the two vessels acquired from Teekay Offshore in December 2015 to reflect the ownership of the vessels from the time they were owned and operating under the control of Teekay Corporation. The amounts included in
this release related to the Entities under Common Controls are preliminary, and will be finalized for inclusion in the Companys Annual Report on Form 20-F for the year ended December 31, 2015. Any
revisions to the preliminary Entities under Common Control figures are expected to impact only the accounting for the periods prior to the dates the vessels were acquired by the Company, and therefore will have no effect on the adjusted net income
attributable to the shareholders or free cash flow of the Company for any period, including the fourth quarter of 2015. |
(2) |
Derivative asset reflects the fair value of a common stock purchase warrant issued by TIL to the Company in connection with the Companys
involvement in the formation of TIL. |
9
- more -
Teekay Tankers Ltd.
Summary Consolidated Statements of Cash Flows
(in thousands of
U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
December 31, 2015 |
|
|
December 31, 2014 |
|
|
|
(unaudited)(1) |
|
|
(unaudited)(1) |
|
Cash and cash equivalents provided by (used for) |
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating cash flow |
|
|
166,789 |
|
|
|
20,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Proceeds from long-term debt, net of issuance costs |
|
|
688,695 |
|
|
|
98,796 |
|
Repayments of long-term debt |
|
|
(40,029 |
) |
|
|
(20,367 |
) |
Prepayment of long-term debt |
|
|
(191,592 |
) |
|
|
(167,000 |
) |
Proceeds from long-term debt of Entities under Common Control |
|
|
|
|
|
|
10,368 |
|
Repayment of long-term debt of Entities under Common Control |
|
|
(4,632 |
) |
|
|
(3,309 |
) |
Net advances to affiliates |
|
|
(825 |
) |
|
|
(17,376 |
) |
Acquisition of SPT Explorer and Navigator Spirit |
|
|
(31,870 |
) |
|
|
|
|
Equity contribution from Teekay Corporation to Entities under Common Control |
|
|
1,928 |
|
|
|
3,001 |
|
Equity contribution from Teekay Corporation |
|
|
|
|
|
|
1,267 |
|
Cash dividends paid |
|
|
(15,139 |
) |
|
|
(10,165 |
) |
Proceeds from equity offerings, net of offering costs |
|
|
242,264 |
|
|
|
111,190 |
|
|
|
|
|
|
|
|
|
|
Net financing cash flow |
|
|
648,800 |
|
|
|
6,405 |
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Proceeds from sale of vessels |
|
|
11,080 |
|
|
|
154,000 |
|
Expenditures for vessels and equipment |
|
|
(236,229 |
) |
|
|
(5,784 |
) |
Expenditures for Principal Maritime vessel acquisitions |
|
|
(612,000 |
) |
|
|
|
|
Investment in and advances to Teekay Tankers Operations Ltd. |
|
|
(239 |
) |
|
|
(6,494 |
) |
Investment in and advances to Tanker Investments Ltd. |
|
|
|
|
|
|
(35,045 |
) |
Investment in and advances from High-Q |
|
|
1,000 |
|
|
|
1,950 |
|
Term loan advance recoveries |
|
|
|
|
|
|
1,179 |
|
Acquisition of SPT |
|
|
(45,581 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investing cash flow |
|
|
(881,969 |
) |
|
|
109,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease) increase in cash and cash equivalents |
|
|
(66,380 |
) |
|
|
137,151 |
|
Cash and cash equivalents, beginning of the year |
|
|
162,797 |
|
|
|
25,646 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of the year |
|
|
96,417 |
|
|
|
162,797 |
|
|
|
|
|
|
|
|
|
|
(1) |
In accordance with GAAP, the statements of cash flow for the years ended December 31, 2015 and 2014 include the Entities under Common Control
results for the two vessels acquired from Teekay Offshore in December 2015 to reflect the ownership of the vessels from the time they were owned and operating under the control of Teekay Corporation. The amounts included in this release related to
the Entities under Common Controls are preliminary, and will be finalized for inclusion in the Companys Annual Report on Form 20-F for the year ended December 31, 2015. Any revisions to the
preliminary Entities under Common Control figures are expected to impact only the accounting for the periods prior to the dates the vessels were acquired by the Company, and therefore will have no effect on the adjusted net income attributable to
the shareholders or free cash flow of the Company for any period, including the fourth quarter of 2015. |
10
- more -
Teekay Tankers Ltd.
Appendix A Specific Items Affecting Income
(in thousands
of U.S. dollars, except per share amounts)
Set forth below is a reconciliation of the Companys unaudited adjusted net income
attributable to the shareholders of Teekay Tankers, a non-GAAP financial measure, to net income as determined in accordance with GAAP. The Company believes that, in addition to conventional measures prepared
in accordance with GAAP, certain investors use this information to evaluate the Companys financial performance. The items below are also typically excluded by securities analysts in their published estimates of the Companys financial
results. Adjusted net income attributable to the shareholders of Teekay Tankers is intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
December 31, 2015 |
|
|
December 31, 2014 |
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
$ |
|
|
$ Per Share(1) |
|
|
$ |
|
|
$ Per Share(1) |
|
Net income - GAAP basis |
|
|
53,559 |
|
|
$ |
0.35 |
|
|
|
21,145 |
|
|
$ |
0.23 |
|
Subtract: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to the Entities under Common Control(2) |
|
|
(1,072 |
) |
|
($ |
0.01 |
) |
|
|
(886 |
) |
|
($ |
0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to shareholders of Teekay Tankers |
|
|
52,487 |
|
|
$ |
0.34 |
|
|
|
20,259 |
|
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Subtract) add specific items affecting net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain on derivative instruments(3) |
|
|
(2,896 |
) |
|
|
(0.02 |
) |
|
|
(2,335 |
) |
|
|
(0.02 |
) |
Gain on sale of vessels |
|
|
(771 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
Other(4) |
|
|
(278 |
) |
|
|
|
|
|
|
652 |
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total adjustments |
|
|
(3,945 |
) |
|
($ |
0.03 |
) |
|
|
(1,683 |
) |
|
($ |
0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income attributable to shareholders of Teekay Tankers |
|
|
48,542 |
|
|
$ |
0.31 |
|
|
|
18,576 |
|
|
$ |
0.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
December 31, 2015 |
|
|
December 31, 2014 |
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
$ |
|
|
$ Per Share(1) |
|
|
$ |
|
|
$ Per Share(1) |
|
Net income - GAAP basis |
|
|
179,635 |
|
|
$ |
1.37 |
|
|
|
60,538 |
|
|
$ |
0.70 |
|
Subtract: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to the Entities under Common Control(2) |
|
|
(2,708 |
) |
|
($ |
0.02 |
) |
|
|
(3,396 |
) |
|
($ |
0.04 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to shareholders of Teekay Tankers |
|
|
176,927 |
|
|
$ |
1.35 |
|
|
|
57,142 |
|
|
$ |
0.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Subtract) add specific items affecting net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain on derivative instruments(3) |
|
|
(8,193 |
) |
|
($ |
0.06 |
) |
|
|
(8,282 |
) |
|
($ |
0.10 |
) |
Gain on sale of vessels(5) |
|
|
(771 |
) |
|
($ |
0.01 |
) |
|
|
(9,955 |
) |
|
($ |
0.12 |
) |
Fair value on initial recognition of stock purchase warrant(6) |
|
|
|
|
|
|
|
|
|
|
(3,420 |
) |
|
($ |
0.04 |
) |
Dilution gain on equity accounted investment(7) |
|
|
|
|
|
|
|
|
|
|
(2,054 |
) |
|
($ |
0.02 |
) |
Other(4) |
|
|
1,132 |
|
|
$ |
0.01 |
|
|
|
487 |
|
|
$ |
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total adjustments |
|
|
(7,832 |
) |
|
($ |
0.06 |
) |
|
|
(23,224 |
) |
|
($ |
0.27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income attributable to shareholders of Teekay Tankers |
|
|
169,095 |
|
|
$ |
1.29 |
|
|
|
33,918 |
|
|
$ |
0.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11
- more -
(1) |
Fully diluted per share amounts. |
(2) |
The amounts included in this release related to the Entities under Common Controls are preliminary, and will be finalized for inclusion in the
Companys Annual Report on Form 20-F for the year ended December 31, 2015. Any revisions to the preliminary Entities under Common Control figures are only expected to impact the accounting for the
periods prior to the date the vessels were acquired by the Company, and therefore will have no effect on the adjusted net income attributable to the shareholders or free cash flow of the Company for any period, including the fourth quarter of 2015.
|
(3) |
Reflects the unrealized gain due to changes in the mark-to-market value of derivative instruments that are not designated as hedges for accounting
purposes, including unrealized gains or losses on interest rate swaps and the TIL common stock purchase warrant. |
(4) |
The amount recorded for the three months and year ended December 31, 2015 primarily relates to unrealized derivative losses in joint venture,
foreign exchange losses, severance payment related to the dissolution of the Gemini Pool and restructuring costs related to the acquisition of the ship-to-ship transfer
business. |
(5) |
In May 2014, the Company sold to TIL two wholly-owned subsidiaries, each of which owned one VLCC, for the aggregate proceeds of $154.0 million plus
related working capital on closing of $1.7 million. The Company recognized a $10.0 million gain on this transaction. |
(6) |
Reflects the fair value on the initial recognition of the common stock purchase warrant issued by TIL to the Company during the year ended
December 31, 2014, which was received in connection with the Companys involvement in the formation of TIL. |
(7) |
Reflects the dilution gain from the common share issuance completed as part of TILs initial public offering in March 2014.
|
12
- more -
Teekay Tankers Ltd.
Appendix B Reconciliation of Non-GAAP Financial Measure
Free Cash Flow
(in thousands of U.S. dollars, except share and
per share data)
Free cash flow (FCF) represents net income, plus depreciation and amortization, unrealized losses from derivatives,
non-cash items, FCF from the equity accounted investments and any write-offs or other non-recurring items, less unrealized gains
from derivatives, equity income from the equity accounted investments, net income attributable to the Entities under Common Control and other non-cash items.
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
December 31, 2015 |
|
|
|
(unaudited) |
|
|
|
Net income for the period |
|
|
53,559 |
|
|
|
Add: |
|
|
|
|
Depreciation and amortization, excluding Entities under Common Control |
|
|
25,130 |
|
Proportionate share of free cash flow from equity accounted investments |
|
|
6,761 |
|
Other(1) |
|
|
3,555 |
|
|
|
Less: |
|
|
|
|
Unrealized gain on derivative instruments |
|
|
(2,896 |
) |
Equity income |
|
|
(5,480 |
) |
Net income attributable to the Entities under Common Control |
|
|
(1,072 |
) |
Amortization of in-process revenue contracts |
|
|
(4,769 |
) |
Gain on sale of vessels |
|
|
(771 |
) |
|
|
|
|
|
Free cash flow |
|
|
74,017 |
|
|
|
|
|
|
|
|
Weighted-average number of common shares outstanding for the quarter |
|
|
154,477,604 |
|
|
|
|
|
|
Free cash flow per share (rounded) |
|
|
0.48 |
|
|
|
|
|
|
(1) |
Other includes termination fees received on the cancellation of two
in-the-money charter contracts relating to the acquisition of the SPT Explorer and Navigator Spirit conventional tankers. |
13
- more -
Teekay Tankers LTD.
Appendix C Reconciliation of Non-GAAP Financial Measure
Net Revenues
(in thousands of U.S. dollars)
Net revenues represents revenues less voyage expenses where voyage expenses are comprised of all expenses relating to certain voyages,
including bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions. Net revenues is a non-GAAP financial measure used by certain investors to measure the
financial performance of shipping companies; however, it is not required by GAAP and should not be considered as an alternative to revenues or any other indicator of the Companys performance required by GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31, 2015 |
|
|
December 31, 2014 |
|
|
December 31, 2015 |
|
|
December 31, 2014 |
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
Revenues |
|
|
168,986 |
|
|
|
79,562 |
|
|
|
514,193 |
|
|
|
250,002 |
|
Voyage expenses |
|
|
(9,652 |
) |
|
|
(2,128 |
) |
|
|
(19,816 |
) |
|
|
(11,223 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
159,334 |
|
|
|
77,434 |
|
|
|
494,377 |
|
|
|
238,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14
- more -
Forward Looking Statements
This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which
reflect managements current views with respect to certain future events and performance, including statements regarding: the Companys future dividend payout ratio and anticipated benefits of the new dividend policy; accretion to the
Companys earnings and free cash flow from the acquisition and chartering-in of lightering Aframax tankers; the impact of the U.S. governments decision to lift the ban on crude oil exports and of
the scheduled opening of the expanded Panama Canal, including the establishment of new trade routes for mid-size tankers; the crude oil and refined product tanker market fundamentals, including the balance of
supply and demand in the tanker market, estimated growth in the world tanker fleet, estimated growth in global oil demand, crude oil tanker demand and OPEC crude oil supply; tanker fleet utilization and spot tanker rates; the effect of lower global
oil prices, including the potential impact on oil stockpiling, refinery throughput and bunker fuel prices; the impact of the tanker market on the Companys earnings, free cash flow, net asset value and future dividends; the delivery date
of one chartered-in Aframax tanker; and the impact on the financial flexibility as a result of the new debt facility. The following factors are among those that could cause actual results to differ materially
from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: changes in the production of, or demand for, oil or refined products;
changes in trading patterns significantly affecting overall vessel tonnage requirements; greater or less than anticipated levels of tanker newbuilding orders and deliveries and greater or less than anticipated rates of tanker scrapping; changes in
global oil prices; market reactions to changes in the U.S. crude oil export positions and expansion of the Panama Canal; revenues and costs related to the Companys lightering Aframax tankers; changes in applicable industry laws and regulations
and the timing of implementation of new laws and regulations; the amount of cash reserves established by the Companys Board of Directors; actual dividend payout ratios determined by the Companys Board of Directors; increased costs; and
other factors discussed in Teekay Tankers filings from time to time with the United States Securities and Exchange Commission, including its Report on Form 20-F for the fiscal year ended
December 31, 2014 and on Form 6-K for the quarters ended March 31, 2015, June 30, 2015 and September 30, 2015. The Company expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Companys expectations with respect thereto or any change in events, conditions or
circumstances on which any such statement is based.
15
- end -
Teekay Tankers (NYSE:TNK)
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