Global Ship Lease, Inc. (NYSE:GSL) (the “Company”), a containership
charter owner, announced today its unaudited results for the three
months ended March 31, 2017.
First Quarter Highlights
- Reported operating revenues of $39.6 million for the first
quarter 2017
- Reported net income for common shareholders for the first
quarter 2017 of $6.8 million; normalized net income was also $6.8
million
- Generated $28.0 million of Adjusted EBITDA(1) for the first
quarter 2017
Ian Webber, Chief Executive Officer of Global Ship Lease,
stated, “During the first quarter of 2017, we continued to execute
our core strategy, maximizing the value of our long-term time
charters with high-quality counterparties, maintaining high levels
of vessel utilization and closely controlling costs. Our success in
this regard has enabled us to continue generating strong, stable
cashflows.”
Mr. Webber continued, “With high levels of scrapping and minimal
vessel ordering in the year-to-date, we have seen significant
improvement in spot market charter rates in the last few weeks.
This trend has been particularly pronounced for the mid-sized and
smaller vessel classes where we focus. While most of our vessels
continue on their current charters for multiple years, we are
encouraged by the improvement in the spot market, which, if
sustained, will benefit those vessels that are due to become open
later this year and early next. We believe that our established
relationships with strong counterparties, consistent cashflows, and
ongoing deleveraging of our balance sheet position Global Ship
Lease to benefit from market improvement.”
SELECTED FINANCIAL DATA – UNAUDITED
|
(thousands of U.S.
dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three |
|
Three |
|
|
|
|
months ended |
|
months
ended |
|
|
|
|
March 31, 2017 |
|
March
31, 2016 |
|
|
|
|
|
|
|
|
|
Operating
Revenues |
|
39,642 |
|
42,610 |
|
|
Operating Income |
|
18,434 |
|
18,385 |
|
|
Net Income for common
shareholders |
|
6,794 |
|
4,557 |
|
|
Adjusted EBITDA
(1) |
|
28,034 |
|
29,319 |
|
|
Normalized Net Income
(1) |
|
6,794 |
|
5,429 |
|
|
|
|
(1) Adjusted EBITDA and Normalized net income are non-US
Generally Accepted Accounting Principles (US GAAP) measures, as
explained further in this press release, and are considered by
Global Ship Lease to be useful measures of its performance.
Reconciliations of such non-GAAP measures to the most directly
comparable US GAAP measure are provided in this Earnings
Release.
Operating Revenues and Utilization The fleet generated operating
revenues from fixed-rate time charters of $39.6 million in the
three months ended March 31, 2017, down $3.0 million or 7.0% on
operating revenues of $42.6 million for the comparative quarter in
2016. The reduction in revenue is mainly due to 68 fewer operating
days, mainly as a result of three dry-dockings in the quarter,
compared to none in the prior period, and to the prior period being
a leap year, together with the effect of the amendments to the
charters of Marie Delmas and Kumasi, effective August 1, 2016,
whereby the previous charter rate of $18,465 per day was reduced to
$13,000 per day against the granting of options in our favor to
extend the charters at $9,800 per day in three periods, potentially
to end 2020. There were 1,620 ownership days in the quarter, down
on 1,638 ownership days in the comparative quarter, due to the leap
year. In the first quarter 2017, there were 50 days offhire, 47 of
which were for three scheduled dry-dockings, giving an overall
utilization of 96.9%. There was no offhire in the first quarter
2016, and consequently utilization was 100.0%.
The table below shows fleet utilization for the three months
ended March 31, 2017 and 2016, and for the years ended December 31,
2016, 2015, 2014, 2013 and 2012.
|
|
|
|
|
|
|
|
|
Three months ended |
Year ended |
|
|
Mar 31, |
Mar 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Days |
2017 |
|
2016 |
|
2016 |
|
2015 |
|
2014 |
|
2013 |
|
2012 |
|
|
|
|
|
|
|
|
|
Ownership days |
1,620 |
|
1,638 |
|
6,588 |
|
6,893 |
|
6,270 |
|
6,205 |
|
6,222 |
|
Planned offhire -
scheduled drydock |
(47 |
) |
0 |
|
(100 |
) |
(9 |
) |
(48 |
) |
(21 |
) |
(82 |
) |
Unplanned offhire |
(3 |
) |
0 |
|
(3 |
) |
(7 |
) |
(12 |
) |
(7 |
) |
(16 |
) |
Idle time |
0 |
|
0 |
|
0 |
|
(13 |
) |
(64 |
) |
0 |
|
0 |
|
Operating days |
1,570 |
|
1,638 |
|
6,485 |
|
6,864 |
|
6,146 |
|
6,177 |
|
6,124 |
|
|
|
|
|
|
|
|
|
Utilization |
96.9 |
% |
100.0 |
% |
98.4 |
% |
99.6 |
% |
98.0 |
% |
99.5 |
% |
98.4 |
% |
There were three regulatory dry-dockings in the three months
ended March 31, 2017; a total of five regulatory dry-dockings are
planned for the year. There were six regulatory drydockings in
2016.
Vessel Operating Expenses Vessel operating expenses, which
include costs of crew, lubricating oil, spares and insurance, were
$10.4 million for the three months ended March 31, 2017, down 8.7%
from $11.4 million for the three months ended March 31, 2016. The
average cost per ownership day fell $535 per day, or 7.7%, from
$6,961 in the three months ended March 31, 2016 to $6,426 for the
three months ended March 31, 2017. The reduction is due to lower
lubricating oil costs from unit price reductions and fewer steaming
days, and to lower repairs and maintenance, in part due to the
timing of purchases.
Depreciation Depreciation for the three months ended March 31,
2017 was $9.6 million, compared to $10.9 million in the three
months ended March 31, 2016, with the reduction due to the effect
of lower book values for a number of vessels following impairment
write downs in 2016.
General and Administrative Costs General and administrative
costs incurred were $1.2 million in the three months ended March
31, 2017, compared to $2.0 million in the three months ended March
31, 2016. The reduction is mainly due to lower legal and other
professional fees.
Other Operating Income
Other operating income in the three months ended March 31, 2017
was $42,000, compared to $81,000 for the three months ended March
31, 2016.
Adjusted EBITDA
As a result of the above, Adjusted EBITDA was $28.0 million for
the three months ended March 31, 2017, down from $29.3 million for
the three months ended March 31, 2016.
Interest Expense
Debt at March 31, 2017 comprises amounts outstanding on our 10%
Notes, the revolving credit facility which was drawn March 11,
2015, and the secured term loan which was drawn September 10,
2015.
Interest expense for the three months ended March 31, 2017 was
$11.0 million, down $2.1 million on the interest expense for the
three months ended March 31, 2016 of $13.1 million. The reduction
is mainly due to a lower principal amount outstanding on the Notes,
following the 2015 excess cashflow and sale proceeds tender offer
(relating to the sales of two vessels in late 2015), which closed
in March 2016, and open market purchases of Notes between April 1,
2016 and December 31, 2016, which in aggregate retired $53.9
million principal amount of the Notes. Further, the three months
ended March 31, 2016 included $0.9 million aggregate charge for the
premium paid in March 2016 in relation to the tender offer and
accelerated write off of the portion of the original issue discount
and deferred financing costs attributable to the Notes which were
retired.
The tender offer for 2016 excess cashflow closed in April 2017,
resulting in $19.5 million principal amount of the Notes being
purchased, at a purchase price of 102% plus accrued interest, and
subsequently retired. Interest income for the three months ended
March 31, 2017 and 2016 was not material. Taxation
Taxation for the three months ended March 31, 2017 and 2016 was
not material.
Earnings Allocated to Preferred Shares
The Series B preferred shares, issued on August 20, 2014, carry
a coupon of 8.75%, the cost of which for the three months ended
March 31, 2017 was $0.8 million.
Net Income Available to Common Shareholders and Normalized Net
Income Net income available to common shareholders for the three
months ended March 31, 2017 was $6.8 million. For the three months
ended March 31, 2016, net income was $4.6 million. This
year-over-year increase is mainly due to reduced interest expense,
depreciation and operating costs, partially offset by lower
operating revenues.
Normalized net income for the three months ended March 31, 2017
was the same as that reported.
Normalized net income for the three months ended March 31, 2016,
which excludes the charges associated with the excess cash flow
tender offer completed in the quarter, was $5.4 million.
Fleet
The following table provides information about the on-the-water
fleet of 18 vessels as at March 31, 2017. 15 vessels are chartered
to CMA CGM, and three are chartered to OOCL.
|
|
|
|
Remaining |
Earliest |
Daily |
|
|
|
|
Charter |
Charter |
Charter |
Vessel |
Capacity |
Year |
Purchase |
Term (2) |
Expiry |
Rate |
Name |
in TEUs (1) |
Built |
by GSL |
(years) |
Date |
$ |
CMA CGM Matisse |
2,262 |
1999 |
Dec
2007 |
2.75 |
Sept
21, 2019 |
15,300 |
CMA CGM Utrillo |
2,262 |
1999 |
Dec
2007 |
2.75 |
Sept
11, 2019 |
15,300 |
Delmas Keta |
2,207 |
2003 |
Dec
2007 |
0.75 |
Sept
20, 2017 |
18,465 |
Julie Delmas |
2,207 |
2002 |
Dec
2007 |
0.75 |
Sept
11, 2017 |
18,465 |
Kumasi
(3) |
2,207 |
2002 |
Dec
2007 |
0.75-3.75(3) |
August
6, 2017(3) |
13,000(3) |
Marie Delmas
(3) |
2,207 |
2002 |
Dec
2007 |
0.75-3.75(3) |
July
31, 2017(3) |
13,000(3) |
CMA CGM La Tour |
2,272 |
2001 |
Dec
2007 |
2.75 |
Sept
20, 2019 |
15,300 |
CMA CGM Manet |
2,272 |
2001 |
Dec
2007 |
2.75 |
Sept
7, 2019 |
15,300 |
CMA CGM Alcazar |
5,089 |
2007 |
Jan
2008 |
3.75 |
Oct
18, 2020 |
33,750 |
CMA CGM Château
d’If |
5,089 |
2007 |
Jan
2008 |
3.75 |
Oct
11, 2020 |
33,750 |
CMA CGM Thalassa |
11,040 |
2008 |
Dec
2008 |
8.75 |
Oct 1,
2025 |
47,200 |
CMA CGM Jamaica |
4,298 |
2006 |
Dec
2008 |
5.75 |
Sept
17, 2022 |
25,350 |
CMA CGM Sambhar |
4,045 |
2006 |
Dec
2008 |
5.75 |
Sept
16, 2022 |
25,350 |
CMA CGM America |
4,045 |
2006 |
Dec
2008 |
5.75 |
Sept
19, 2022 |
25,350 |
CMA CGM Berlioz |
6,621 |
2001 |
Aug
2009 |
4.50 |
May
28, 2021 |
34,000 |
OOCL Tianjin |
8,063 |
2005 |
Oct
2014 |
0.75 |
Oct
28, 2017 |
34,500 |
OOCL Qingdao |
8,063 |
2004 |
Mar
2015 |
1.00 |
Mar
11, 2018 |
34,500 |
OOCL Ningbo |
8,063 |
2004 |
Sep
2015 |
1.50 |
Sep
17, 2018 |
34,500 |
|
|
|
|
|
|
(1) Twenty-foot Equivalent Units. |
|
|
|
|
|
(2) As at March 31, 2017. Plus or minus 90 days,
other than (i) OOCL Tianjin which is between October 28, 2017 and
January 28, 2018, (ii) OOCL Qingdao which is between March 11, 2018
and June 11, 2018, and (iii) OOCL Ningbo which is between September
17, 2018 and December 17, 2018, all at charterer’s option. |
(3) The charters for Kumasi and Marie Delmas were
amended in July 2016. The earliest possible re-delivery date is
shown in the table. However, the Company may exercise three
consecutive options to extend the charters, at $9,800 per day,
which extend the earliest re-delivery date to October 2, 2020. |
|
Conference Call and Webcast Global Ship Lease
will hold a conference call to discuss the Company's results for
the three months ended March 31, 2017 today, Tuesday, May 2, 2017
at 10:30 a.m. Eastern Time. There are two ways to access the
conference call:
(1) Dial-in: (877) 445-2556 or
(908) 982-4670; Passcode: 6809621.
Please dial in at least 10 minutes prior to 10:30 a.m. Eastern
Time to ensure a prompt start to the call. (2) Live
Internet webcast and slide presentation:
http://www.globalshiplease.com
If you are unable to participate at this time, a
replay of the call will be available through Thursday, May 18, 2017
at (855) 859-2056 or (404) 537-3406. Enter the code 6809621 to
access the audio replay. The webcast will also be archived on the
Company's website: http://www.globalshiplease.com.
Annual Report on Form 20-F
Global Ship Lease, Inc. has filed its Annual Report for 2016
with the Securities and Exchange Commission. A copy of the report
can be found under the Investor Relations section (Annual Reports)
of the Company’s website at http://www.globalshiplease.com.
Shareholders may request a hard copy of the audited financial
statements free of charge by contacting the Company at
info@globalshiplease.com or by writing to Global Ship Lease, Inc.,
care of Global Ship Lease Services Limited, Portland House, Stag
Place, London SW1E 5RS or by telephoning +44 (0) 207 869 8006.
About Global Ship Lease
Global Ship Lease is a containership charter owner. Incorporated
in the Marshall Islands, Global Ship Lease commenced operations in
December 2007 with a business of owning and chartering out
containerships under long-term, fixed rate charters to top tier
container liner companies.
At March 31, 2017, Global Ship Lease owned 18 vessels with a
total capacity of 82,312 TEU and an average age, weighted by TEU
capacity, of 12.3 years. All vessels are currently fixed on time
charters, 15 with CMA CGM. The average remaining term of the
charters is 3.4 years or 3.7 years on a weighted basis.
Reconciliation of Non-U.S. GAAP Financial
Measure
A. ADJUSTED EBITDA
Adjusted EBITDA represents net income before interest income and
expense including amortization of deferred finance costs, earnings
allocated to preferred shares, income taxes, depreciation,
amortization and impairment. Adjusted EBITDA is a non-US GAAP
quantitative measure used to assist in the assessment of the
Company's ability to generate cash from its operations. We believe
that the presentation of Adjusted EBITDA is useful to investors
because it is frequently used by securities analysts, investors and
other interested parties in the evaluation of companies in our
industry. Adjusted EBITDA is not defined in US GAAP and should not
be considered to be an alternate to Net income or any other
financial metric required by such accounting principles. Our use of
Adjusted EBITDA may vary from the use of similarly titled measures
by others in our industry.
ADJUSTED EBITDA - UNAUDITED
|
(thousands
of U.S. dollars) |
|
|
|
|
|
|
Three |
Three |
|
|
|
months |
months |
|
|
|
ended |
ended |
|
|
|
Mar 31, |
Mar 31, |
|
|
|
2017 |
|
2016 |
|
|
|
|
|
|
|
Net income
available to common shareholders |
6,794 |
|
4,557 |
|
|
|
|
|
|
|
Adjust: |
Depreciation |
9,600 |
|
10,934 |
|
|
|
Interest income |
(93 |
) |
(44 |
) |
|
|
Interest expense |
10,957 |
|
13,100 |
|
|
|
Income tax |
10 |
|
6 |
|
|
|
Earnings allocated to
preferred shares |
766 |
|
766 |
|
|
Adjusted EBITDA |
|
28,034 |
|
29,319 |
|
B. Normalized net income Normalized net income represents net
income adjusted for the premium paid on the tender offer for the
Notes and the gain made on open market purchases of the Notes,
together with the related accelerated amortization of deferred
financing costs and original issue discount, and for impairment
charges. Normalized net income is a non-GAAP quantitative measure
which we believe will assist investors and analysts who often
adjust reported net income for non-operating items that do not
affect operating performance or operating cash generated.
Normalized net income is not defined in US GAAP and should not be
considered to be an alternate to net income or any other financial
metric required by such accounting principles. Our use of
Normalized net income may vary from the use of similarly titled
measures by others in our industry.
NORMALIZED NET INCOME -
UNAUDITED
|
(thousands
of U.S. dollars) |
|
|
|
|
|
Three |
Three |
|
|
|
months |
months |
|
|
|
ended |
ended |
|
|
|
Mar
31, |
Mar
31, |
|
|
|
2017 |
2016 |
|
|
|
|
|
|
Net income
available to common shareholders |
6,794 |
4,557 |
|
Adjust: |
Premium paid on tender
offer for bonds |
-- |
533 |
|
|
Accelerated write off
of deferred financing costs related to tender offer |
-- |
80 |
|
|
Accelerated write off
of original issue discount related to tender offer |
-- |
259 |
|
Normalized
net income |
6,794 |
5,429 |
Safe Harbor Statement This communication
contains forward-looking statements. Forward-looking statements
provide Global Ship Lease's current expectations or forecasts of
future events. Forward-looking statements include statements about
Global Ship Lease's expectations, beliefs, plans, objectives,
intentions, assumptions and other statements that are not
historical facts. Words or phrases such as "anticipate," "believe,"
"continue," "estimate," "expect," "intend," "may," "ongoing,"
"plan," "potential," "predict," "project," "will" or similar words
or phrases, or the negatives of those words or phrases, may
identify forward-looking statements, but the absence of these words
does not necessarily mean that a statement is not forward-looking.
These forward-looking statements are based on assumptions that may
be incorrect, and Global Ship Lease cannot assure you that these
projections included in these forward-looking statements will come
to pass. Actual results could differ materially from those
expressed or implied by the forward-looking statements as a result
of various factors. The risks and uncertainties include, but are
not limited to:
- future operating or financial results;
- expectations regarding the strength of future growth of the
container shipping industry, including the rates of annual demand
and supply growth;
- the financial condition of CMA CGM (the company’s principal
charterer and main source of operating revenues) and other
charterers and their ability to pay charterhire in accordance with
the charters;
- the overall health and condition of the U.S. and global
financial markets;
- Global Ship Lease’s financial condition and liquidity,
including its ability to obtain additional financing to fund
capital expenditures, vessel acquisitions and for other general
corporate purposes and its ability to meet its financial covenants
and repay its borrowings;
- Global Ship Lease’s expectations relating to dividend payments
and forecasts of its ability to make such payments including the
availability of cash and the impact of constraints under its first
priority secured notes;
- future acquisitions, business strategy and expected capital
spending;
- operating expenses, availability of key employees, crew, number
of off-hire days, drydocking and survey requirements, costs of
regulatory compliance, insurance costs and general and
administrative costs;
- general market conditions and shipping industry trends,
including charter rates and factors affecting supply and
demand;
- assumptions regarding interest rates and inflation;
- change in the rate of growth of global and various regional
economies;
- risks incidental to vessel operation, including piracy,
discharge of pollutants and vessel accidents and damage including
total or constructive total loss;
- estimated future capital expenditures needed to preserve Global
Ship Lease’s capital base;
- Global Ship Lease’s expectations about the availability of
vessels to purchase, the time that it may take to construct new
vessels, or the useful lives of its vessels;
- Global Ship Lease’s continued ability to enter into or renew
charters including the re-chartering of vessels on the expiry of
existing charters, or to secure profitable employment for its
vessels in the spot market;
- the continued performance of existing charters;
- Global Ship Lease’s ability to capitalize on management’s and
directors’ relationships and reputations in the containership
industry to its advantage;
- changes in governmental and classification societies’ rules and
regulations or actions taken by regulatory authorities;
- expectations about the availability of insurance on
commercially reasonable terms;
- unanticipated changes in laws and regulations; and
- potential liability from future litigation.
Forward-looking statements are subject to known and unknown
risks and uncertainties and are based on potentially inaccurate
assumptions that could cause actual results to differ materially
from those expected or implied by the forward-looking statements.
Global Ship Lease's actual results could differ materially from
those anticipated in forward-looking statements for many reasons
specifically as described in Global Ship Lease's filings with the
SEC. Accordingly, you should not unduly rely on these
forward-looking statements, which speak only as of the date of this
communication. Global Ship Lease undertakes no obligation to
publicly revise any forward-looking statement to reflect
circumstances or events after the date of this communication or to
reflect the occurrence of unanticipated events. You should,
however, review the factors and risks Global Ship Lease describes
in the reports it will file from time to time with the SEC after
the date of this communication.
Global Ship Lease, Inc. |
|
Interim Unaudited Consolidated Statements of
Cash Flows |
|
(Expressed in thousands of U.S. dollars except share
data) |
|
|
|
Three months ended |
|
|
|
March 31, |
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
Operating
Revenues |
|
|
|
Time charter
revenue |
|
$ |
9,238 |
|
$ |
9,338 |
|
Time charter revenue –
related party |
|
|
30,404 |
|
|
33,272 |
|
|
|
|
|
|
|
|
39,642 |
|
|
42,610 |
|
|
|
|
|
|
|
|
|
Operating
Expenses Vessel operating expenses |
|
|
10,010 |
|
|
11,002 |
|
Vessel operating
expenses – related party |
|
|
400 |
|
|
400 |
|
Depreciation |
|
|
9,600 |
|
|
10,934 |
|
General and
administrative |
|
|
1,240 |
|
|
1,970 |
|
Other operating
income |
|
|
(42 |
) |
|
(81 |
) |
|
|
|
|
Total operating
expenses |
|
|
21,208 |
|
|
24,225 |
|
|
|
|
|
|
|
|
|
Operating
Income |
|
|
18,434 |
|
|
18,385 |
|
|
|
|
|
Non Operating
Income (Expense) |
|
|
|
Interest income |
|
|
93 |
|
|
44 |
|
Interest expense |
|
|
(10,957 |
) |
|
(13,100 |
) |
|
|
|
|
|
|
|
|
Income before
Income Taxes |
|
|
7,570 |
|
|
5,329 |
|
|
|
|
|
Income taxes |
|
|
(10 |
) |
|
(6 |
) |
|
|
|
|
Net
Income |
|
$ |
7,560 |
|
$ |
5,323 |
|
|
|
|
|
Earnings allocated to
Series B Preferred Shares |
|
|
(766 |
) |
|
(766 |
) |
|
|
|
|
Net Income
available to Common Shareholders |
|
$ |
6,794 |
|
$ |
4,557 |
|
|
|
|
|
|
|
|
|
Earnings per
Share |
|
|
|
|
|
|
|
Weighted average number
of Class A common shares outstanding |
|
|
|
Basic
(including RSUs without service conditions) |
|
|
47,975,609 |
|
|
47,841,578 |
|
Diluted |
|
|
47,975,609 |
|
|
47,841,578 |
|
|
|
|
|
Net income per Class A
common share |
|
|
|
Basic
(including RSUs without service conditions) |
|
$ |
0.14 |
|
$ |
0.10 |
|
Diluted |
|
$ |
0.14 |
|
$ |
0.10 |
|
|
|
|
|
Weighted average number
of Class B common shares outstanding |
|
|
|
Basic and
diluted |
|
|
7,405,956 |
|
|
7,405,956 |
|
|
|
|
|
Net income per Class B
common share |
|
|
|
|
|
|
|
Basic and
diluted |
|
$ |
nil |
|
$ |
nil |
|
|
|
|
|
|
|
|
|
Global Ship Lease, Inc. |
|
Interim Unaudited Consolidated
Balance Sheets |
|
(Expressed in thousands of U.S. dollars except share
data) |
|
|
|
March 31, |
|
December 31, |
|
|
2017 |
|
2016 |
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
57,017 |
|
|
$ |
54,243 |
|
Accounts
receivable |
|
|
38 |
|
|
|
29 |
|
Due from related
party |
|
|
1,271 |
|
|
|
906 |
|
Prepaid expenses |
|
|
1,480 |
|
|
|
1,146 |
|
Other receivables |
|
|
72 |
|
|
|
52 |
|
Inventory |
|
|
601 |
|
|
|
553 |
|
|
|
|
|
|
Total current
assets |
|
|
60,479 |
|
|
|
56,929 |
|
|
|
|
|
|
|
|
|
|
|
Vessels in
operation |
|
|
712,695 |
|
|
|
719,110 |
|
Other fixed assets |
|
|
6 |
|
|
|
7 |
|
Intangible assets |
|
|
14 |
|
|
|
16 |
|
Other long term
assets |
|
|
168 |
|
|
|
195 |
|
|
|
|
|
|
Total non-current
assets |
|
|
712,883 |
|
|
|
719,328 |
|
|
|
|
|
|
Total
Assets |
|
$ |
773,362 |
|
|
$ |
776,257 |
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Current portion of long
term debt |
|
$ |
29,269 |
|
|
$ |
31,026 |
|
Intangible liability –
charter agreements |
|
|
1,797 |
|
|
|
1,807 |
|
Deferred revenue |
|
|
2,368 |
|
|
|
1,940 |
|
Accounts payable |
|
|
1,277 |
|
|
|
963 |
|
Due to related
party |
|
|
2,758 |
|
|
|
1,315 |
|
Accrued expenses |
|
|
2,023 |
|
|
|
11,664 |
|
|
|
|
|
|
Total current
liabilities |
|
|
39,492 |
|
|
|
48,715 |
|
|
|
|
|
|
|
|
|
|
|
Long term debt |
|
|
388,824 |
|
|
|
388,847 |
|
Intangible liability –
charter agreements |
|
|
9,340 |
|
|
|
9,782 |
|
Deferred tax
liability |
|
|
19 |
|
|
|
20 |
|
|
|
|
|
|
Total long-term
liabilities |
|
|
398,183 |
|
|
|
398,649 |
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities |
|
$ |
437,675 |
|
|
$ |
447,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
Equity |
|
|
|
|
|
|
|
|
|
Class A Common stock –
authorized |
|
|
|
|
|
|
|
|
214,000,000 shares with a $0.01 par value; |
|
|
|
|
|
|
|
|
47,575,609 shares issued and outstanding (2016 – 47,575,609) |
|
$ |
476 |
|
|
$ |
476 |
|
Class B Common stock –
authorized |
|
|
|
|
|
|
|
|
20,000,000 shares with a $0.01 par value; |
|
|
|
|
|
|
|
|
7,405,956
shares issued and outstanding (2016 – 7,405,956) |
|
|
74 |
|
|
|
74 |
|
Series B Preferred
shares – authorized |
|
|
|
|
|
|
|
|
16,100
shares with a $0.01 par value; |
|
|
|
|
|
|
|
|
14,000
shares issued and outstanding (2016 – 14,000) |
|
|
- |
|
|
|
- |
|
Additional paid in
capital |
|
|
386,708 |
|
|
|
386,708 |
|
(Accumulated
deficit) |
|
|
(51,571 |
) |
|
|
(58,365 |
) |
|
|
|
|
|
Total
Stockholders’ Equity |
|
|
335,687 |
|
|
|
328,893 |
|
|
|
|
|
|
Total
Liabilities and Stockholders’ Equity |
|
$ |
773,362 |
|
|
$ |
776,257 |
|
|
|
|
|
|
Global Ship Lease, Inc. |
|
Interim Unaudited Consolidated Statements of
Cash Flows |
|
(Expressed in thousands of U.S. dollars) |
|
|
|
Three months ended |
|
|
March 31, |
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
Cash Flows from
Operating Activities |
|
|
|
Net income |
|
$ |
7,560 |
|
$ |
5,323 |
|
|
|
|
|
Adjustments to
Reconcile Net Income to Net Cash Provided by Operating
Activities |
|
|
|
Depreciation |
|
|
9,600 |
|
|
10,934 |
|
Amortization of
deferred financing costs |
|
|
890 |
|
|
952 |
|
Amortization of
original issue discount |
|
|
282 |
|
|
582 |
|
Amortization of
intangible liability |
|
|
(452 |
) |
|
(529 |
) |
Share based
compensation |
|
|
- |
|
|
33 |
|
Increase in accounts
receivable and other assets |
|
|
(581 |
) |
|
(549 |
) |
(Increase) decrease in
inventory |
|
|
(48 |
) |
|
34 |
|
Decrease in accounts
payable and other liabilities |
|
|
(9,548 |
) |
|
(10,182 |
) |
Increase (decrease) in
unearned revenue |
|
|
428 |
|
|
(104 |
) |
Increase in related
party balances |
|
|
48 |
|
|
716 |
|
Unrealized foreign
exchange loss |
|
|
6 |
|
|
32 |
|
|
|
|
|
Net Cash
Provided by Operating Activities |
|
|
8,185 |
|
|
7,242 |
|
|
|
|
|
Cash Flows from
Investing Activities |
|
|
|
Costs paid in respect
of sale of vessels |
|
|
- |
|
|
(157 |
) |
Cash paid for other
assets |
|
|
- |
|
|
(1 |
) |
Cash paid for
drydockings |
|
|
(1,720 |
) |
|
- |
|
|
|
|
|
Net Cash Used
in Investing Activities |
|
|
(1,720 |
) |
|
(158 |
) |
|
|
|
|
Cash Flows from
Financing Activities |
|
|
|
Repurchase of secured
notes |
|
|
- |
|
|
(26,662 |
) |
Repayment of credit
facilities |
|
|
(2,925 |
) |
|
(2,725 |
) |
Series B Preferred
Shares – dividends paid |
|
|
(766 |
) |
|
(766 |
) |
|
|
|
|
Net Cash (Used
in) Provided by Financing Activities |
|
|
(3,691 |
) |
|
(30,153 |
) |
|
|
|
|
Net Increase
(Decrease) in Cash and Cash Equivalents |
|
|
2,774 |
|
|
(23,069 |
) |
Cash and Cash
Equivalents at Start of Period |
|
|
54,243 |
|
|
53,591 |
|
|
|
|
|
Cash and Cash
Equivalents at End of Period |
|
$ |
57,017 |
|
$ |
30,522 |
|
|
|
|
|
|
|
|
|
Supplemental
information |
|
|
|
Total interest
paid |
|
$ |
18,932 |
|
$ |
21,507 |
|
Income tax paid |
|
$ |
14 |
|
$ |
16 |
|
|
|
|
|
Investor and Media Contacts:
The IGB Group
Bryan Degnan
646-673-9701
or
Leon Berman
212-477-8438
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