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2023-11-06
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United
States
Securities
and Exchange Commission
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
November
6, 2023
Date
of Report (Date of earliest event reported)
Overseas
Shipholding Group, Inc.
(Exact
Name of Registrant as Specified in Charter)
Delaware |
|
001-06479 |
|
13-2637623 |
(State
of
Incorporation) |
|
(Commission
File
Number) |
|
(IRS
Employer
Identification
No.) |
Two
Harbor Place
302
Knights Run Avenue, Suite 1200
Tampa,
Florida 33602
(Address
of principal executive offices) (Zip Code)
Registrant’s
telephone number, including area code (813) 209-0600
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
|
☐ |
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
☐ |
Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
☐ |
Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
☐ |
Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities
registered pursuant to Section 12(b) of the Act:
Title
of each class |
|
Trading
Symbol(s) |
|
Name
of each exchange on which registered |
Class A Common Stock (par
value $0.01 per share) |
|
OSG |
|
NYSE |
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company ☐
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. ☐
OVERSEAS
SHIPHOLDING GROUP, INC.
FORM
8-K
CURRENT
REPORT
Section
2 – Financial Information
Item 2.02 |
Results of Operations and Financial
Condition. |
The
following information, including the Exhibit to this Form 8-K, is being furnished pursuant to Item 2.02 of Form 8-K – Results of
Operations and Financial Condition. This information is not deemed to be “filed” for the purposes of Section 18 of the Securities
Exchange Act of 1934 and is not incorporated by reference into any Securities Act of 1933 registration statements.
On
November 6, 2023, Overseas Shipholding Group, Inc. issued a press release, a copy of which is attached hereto as Exhibit 99.1, announcing
third quarter 2023 earnings.
Section
9 - Financial Statements and Exhibits.
Item 9.01 |
Financial Statements and Exhibits. |
(d)
Exhibits
Pursuant
to General Instruction B.2 of Form 8-K, the following exhibit is furnished with this Form 8-K.
SIGNATURES
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 hereunto duly authorized.
|
OVERSEAS SHIPHOLDING GROUP, INC. |
|
(Registrant) |
|
|
|
Date: November 6, 2023 |
By |
/s/ Richard
Trueblood |
|
Name: |
Richard Trueblood |
|
Title: |
Vice President and Chief Financial Officer |
EXHIBIT
INDEX
Exhibit
99.1
OVERSEAS
SHIPHOLDING GROUP REPORTS
THIRD
QUARTER 2023 RESULTS
Tampa,
FL – November 6, 2023 – Overseas Shipholding Group, Inc. (NYSE: OSG) (the “Company” or “OSG”),
a leading provider of liquid bulk transportation services in the energy industry for crude oil and petroleum products in the U.S. Flag
markets, today reported results for the third quarter of 2023.
| ● | Net
income for the third quarter of 2023 was $17.6 million, or $0.22 per diluted share, compared
with net income of $13.2 million, or $0.15 per diluted share, for the third quarter of 2022.
|
| | |
| ● | Third
quarter 2023 Adjusted EBITDA(A), a non-GAAP measure, was $48.1 million, an increase
of $5.8 million, or 13.7%, from the third quarter of 2022. |
| | |
| ● | Shipping
revenues for the third quarter of 2023 were $115.4 million, a decrease of $7.6, million,
or 6.2%, from the third quarter of 2022. |
| | |
| ● | Time
charter equivalent (TCE) revenues(B), a non-GAAP measure, for the third quarter
of 2023 were $108.6 million, a decrease of $6.5 million, or 5.6%, from the third quarter
of 2022. |
| | |
| ● | Total
cash and investments(C) were $112.5 million as of September 30, 2023. |
| | |
| ● | During
the third quarter of 2023, the Company repurchased 4,580,921 shares for total consideration
of $18.7 million. |
| | |
| ● | During
the quarter, the Company also purchased 13,851,382 warrants which were exercisable for 2,631,763
shares for total consideration of $11.4 million. |
Sam
Norton, OSG’s President and CEO, said. “We made progress on all of our key objectives since our report for the second quarter.
Adjusted EBITDA increased by more than 20% from the second quarter. We completed transactions to repurchase the equivalent of 7.2 million
shares, returning nearly $30 million to our shareholders. We took steps to add additional earning assets to our fleet through an agreement
to purchase the Alaskan Frontier, which we expect to be in operation within the next 12 months. And, after the quarter end, we
prepaid $6.7 million of interest-bearing liabilities at a discount, which will see us book a gain of $911,000 during the fourth quarter.”
Mr.
Norton added, “Cashflow from operations continues to meet or exceed our expectations, giving us continuing confidence that our
business plan is working. As has been the case for most of this year, healthy refining margins and strong international tanker rates
have supported better than expected performance from our TSP vessels and have boosted volumes lifted in our lightering operations. With
three-year charter extensions obtained during the quarter for both the Overseas Boston and OSG 204/Endurance, 90% of 2024
available trading days for the Jones Act fleet are now fixed at rates that will generate TCE from fixed contracts in excess of $30 million
per month through the end of 2024. Free cashflow above debt service and capital expenditures should thus be available to allow us to
make further progress in meeting our key capital allocation goals.”
A,
B, C Reconciliations of these non-GAAP financial measures are included in the financial tables attached to this press release
starting on Page 8.
Third
Quarter 2023 Results
Shipping
revenues were $115.4 million for the third quarter of 2023, a decrease of $7.6 million, or 6.2%, compared to the third quarter of 2022.
TCE revenues were $108.6 million for the third quarter of 2023, a decrease of $6.5 million, or 5.6%, from the third quarter of 2022.
The decreases primarily resulted from (a) fewer vessels in our fleet, as we redelivered three conventional tankers leased from American
Shipping Company in December 2022, (b) an 8-day increase in drydock days, and (c) a decrease in Delaware Bay lightering volumes. The
decrease was partially offset by an increase in average daily rates earned by our fleet and one full Government of Israel voyage and
one partial Government of Israel voyage that began during the third quarter of 2023 and continued in the fourth quarter compared to two
partial Government of Israel voyages in the third quarter of 2022.
Operating
income for the third quarter of 2023 was $28.2 million compared to operating income of $22.4 million for the third quarter of 2022. Net
income for the third quarter of 2023 was $17.6 million, or $0.22 per diluted share, compared with net income of $13.2 million, or $0.15
per diluted share, for the third quarter of 2022. The increases in operating and net income primarily reflected decreases in voyage,
vessel and charter hire expenses of $13.1 million when compared to the third quarter of 2022. The decrease in voyage expenses was primarily
due to a decrease in fuel expenses, as our vessels performed fewer voyage charters during the third quarter of 2023 compared to the third
quarter of 2022. The decreases in vessel and charter hire expenses were primarily due to the redelivery of three conventional tankers
leased from American Shipping Company in December 2022.
Adjusted
EBITDA was $48.1 million for the 2023 third quarter, an increase of $5.8 million compared with the third quarter of 2022, driven primarily
by the increases in operating and net income.
Conference
Call
The
Company will host a conference call to discuss its third quarter 2023 results at 9:30 a.m.
Eastern Time (“ET”) on Monday, November 6, 2023.
To
access the call, participants should dial (844) 850-0546 for U.S. callers and (412) 317-5203 for
international callers.
Participants
have an option of calling in to listen or watching a live audio webcast and slide presentation available at the Investors section of
the Company’s website located at www.osg.com/investors. A replay of the webcast will also be available on the website after
the completion of the call.
About
Overseas Shipholding Group, Inc.
Overseas
Shipholding Group, Inc. (NYSE:OSG) is a publicly traded company providing liquid bulk transportation services in the U.S. Flag markets.
OSG’s U.S. Flag fleet consists of Suezmax crude oil tankers doing business in Alaska, conventional and lightering ATBs, shuttle
and conventional MR tankers, and non-Jones Act MR tankers that participate in the U.S. Tanker Security Program.
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
fact 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 continued stability of our niche businesses,
the impact of our time charter contracts on our future financial performance, and external events including geopolitical conflicts such
as the Russia/Ukraine conflict and recent developments in the Middle East. Forward-looking statements are based on our current plans,
estimates and projections, and are subject to change based on a number of factors. Investors should carefully consider the risk factors
outlined in more detail in our filings with the SEC. 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.
Investor
Relations & Media Contact:
Susan
Allan, Overseas Shipholding Group, Inc.
(813)
209-0620
sallan@osg.com
Consolidated
Statements of Operations
($
in thousands, except per share amounts)
| |
Three Months Ended September
30, | | |
Nine Months Ended September
30, | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
(unaudited) | | |
(unaudited) | | |
(unaudited) | | |
(unaudited) | |
Shipping Revenues: | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | |
Time and bareboat charter revenues | |
$ | 93,224 | | |
$ | 92,730 | | |
$ | 264,621 | | |
$ | 232,934 | |
Voyage charter revenues | |
| 22,211 | | |
| 30,329 | | |
| 71,230 | | |
| 112,108 | |
| |
| 115,435 | | |
| 123,059 | | |
| 335,851 | | |
| 345,042 | |
Operating Expenses: | |
| | | |
| | | |
| | | |
| | |
Voyage expenses | |
| 6,858 | | |
| 7,997 | | |
| 22,413 | | |
| 32,813 | |
Vessel expenses | |
| 39,969 | | |
| 45,430 | | |
| 123,337 | | |
| 130,380 | |
Charter hire expenses | |
| 16,233 | | |
| 22,743 | | |
| 47,988 | | |
| 67,089 | |
Depreciation and amortization | |
| 17,003 | | |
| 17,902 | | |
| 49,500 | | |
| 51,058 | |
General and administrative | |
| 7,173 | | |
| 6,556 | | |
| 21,614 | | |
| 20,929 | |
Total operating expenses | |
| 87,236 | | |
| 100,628 | | |
| 264,852 | | |
| 302,269 | |
Operating income | |
| 28,199 | | |
| 22,431 | | |
| 70,999 | | |
| 42,773 | |
Other income, net | |
| 1,643 | | |
| 568 | | |
| 4,184 | | |
| 649 | |
Income before interest expense and income taxes | |
| 29,842 | | |
| 22,999 | | |
| 75,183 | | |
| 43,422 | |
Interest expense | |
| (7,779 | ) | |
| (8,229 | ) | |
| (24,019 | ) | |
| (24,869 | ) |
Income before income taxes | |
| 22,063 | | |
| 14,770 | | |
| 51,164 | | |
| 18,553 | |
Income tax expense | |
| (4,471 | ) | |
| (1,522 | ) | |
| (9,131 | ) | |
| (2,074 | ) |
Net income | |
$ | 17,592 | | |
$ | 13,248 | | |
$ | 42,033 | | |
$ | 16,479 | |
| |
| | | |
| | | |
| | | |
| | |
Weighted Average Number of Common Shares Outstanding: | |
| | | |
| | | |
| | | |
| | |
Basic - Class A | |
| 78,263,667 | | |
| 88,174,640 | | |
| 80,544,607 | | |
| 87,579,624 | |
Diluted - Class A | |
| 80,700,618 | | |
| 90,349,567 | | |
| 83,233,332 | | |
| 89,211,983 | |
Per Share Amounts: | |
| | | |
| | | |
| | | |
| | |
Basic net income - Class A | |
$ | 0.22 | | |
$ | 0.15 | | |
$ | 0.52 | | |
$ | 0.19 | |
Diluted net income - Class A | |
$ | 0.22 | | |
$ | 0.15 | | |
$ | 0.51 | | |
$ | 0.18 | |
Consolidated
Balance Sheets
($
in thousands)
| |
September 30, 2023 | | |
December 31, 2022 | |
| |
(unaudited) | | |
| |
ASSETS | |
| | | |
| | |
Current Assets: | |
| | | |
| | |
Cash and cash equivalents | |
$ | 97,598 | | |
$ | 78,732 | |
Investment security to be held to maturity | |
| 14,900 | | |
| — | |
Voyage receivables, including unbilled of $4,862 and $11,364, net of reserve for credit losses | |
| 12,522 | | |
| 19,698 | |
Income tax receivable | |
| 696 | | |
| 1,914 | |
Other receivables | |
| 2,227 | | |
| 5,334 | |
Inventories, prepaid expenses and other current assets | |
| 3,237 | | |
| 2,668 | |
Total Current Assets | |
| 131,180 | | |
| 108,346 | |
Vessels and other property, less accumulated depreciation | |
| 679,399 | | |
| 726,179 | |
Deferred drydock expenditures, net | |
| 41,703 | | |
| 38,976 | |
Total Vessels, Other Property and Deferred Drydock | |
| 721,102 | | |
| 765,155 | |
Intangible assets, less accumulated amortization | |
| 14,567 | | |
| 18,017 | |
Operating lease right-of-use assets, net | |
| 187,135 | | |
| 206,797 | |
Investment security to be held to maturity | |
| — | | |
| 14,803 | |
Other assets | |
| 27,188 | | |
| 25,945 | |
Total Assets | |
$ | 1,081,172 | | |
$ | 1,139,063 | |
LIABILITIES AND EQUITY | |
| | | |
| | |
Current Liabilities: | |
| | | |
| | |
Accounts payable, accrued expenses and other current liabilities | |
$ | 49,061 | | |
$ | 54,906 | |
Current portion of operating lease liabilities | |
| 67,320 | | |
| 63,288 | |
Current portion of finance lease liabilities | |
| — | | |
| 4,000 | |
Current installments of long-term debt | |
| 43,183 | | |
| 23,733 | |
Total Current Liabilities | |
| 159,564 | | |
| 145,927 | |
Reserve for uncertain tax positions | |
| 212 | | |
| 175 | |
Noncurrent operating lease liabilities | |
| 127,266 | | |
| 149,960 | |
Noncurrent finance lease liabilities | |
| — | | |
| 16,456 | |
Long-term debt | |
| 363,327 | | |
| 399,630 | |
Deferred income taxes, net | |
| 79,263 | | |
| 70,233 | |
Other liabilities | |
| 8,893 | | |
| 16,997 | |
Total Liabilities | |
| 738,525 | | |
| 799,378 | |
Equity: | |
| | | |
| | |
Common stock - Class A ($0.01 par value; 166,666,666 shares authorized; 89,496,512 and 88,297,439 shares issued; 72,322,453 and 78,297,439 shares outstanding) | |
| 895 | | |
| 883 | |
Paid-in additional capital | |
| 587,447 | | |
| 597,455 | |
Accumulated deficit | |
| (190,989 | ) | |
| (233,023 | ) |
Treasury stock, 17,174,059 and 10,000,000 shares, at cost | |
| (57,540 | ) | |
| (29,040 | ) |
| |
| 339,813 | | |
| 336,275 | |
Accumulated other comprehensive income | |
| 2,834 | | |
| 3,410 | |
Total Equity | |
| 342,647 | | |
| 339,685 | |
Total Liabilities and Equity | |
$ | 1,081,172 | | |
$ | 1,139,063 | |
Consolidated
Statements of Cash Flows
($
in thousands)
| |
Nine Months Ended September 30, | |
| |
2023 | | |
2022 | |
| |
(unaudited) | | |
(unaudited) | |
Cash Flows from Operating Activities: | |
| | | |
| | |
Net income | |
$ | 42,033 | | |
$ | 16,479 | |
Items included in net income not affecting cash flows: | |
| | | |
| | |
Depreciation and amortization | |
| 49,500 | | |
| 51,058 | |
Amortization of debt discount and other deferred financing costs | |
| 855 | | |
| 840 | |
Compensation relating to restricted stock awards and stock option grants | |
| 2,556 | | |
| 3,237 | |
Deferred income tax expense | |
| 9,068 | | |
| 1,998 | |
Interest on finance lease liabilities | |
| 917 | | |
| 1,228 | |
Non-cash operating lease expense | |
| 48,970 | | |
| 67,769 | |
Payments for drydocking | |
| (12,862 | ) | |
| (13,896 | ) |
Operating lease liabilities | |
| (50,257 | ) | |
| (69,368 | ) |
Changes in operating assets and liabilities, net | |
| (7,730 | ) | |
| (18,166 | ) |
Net cash provided by operating activities | |
| 83,050 | | |
| 41,179 | |
Cash Flows from Investing Activities: | |
| | | |
| | |
Expenditures for vessels and vessel improvements | |
| (2,593 | ) | |
| (4,519 | ) |
Purchase of investment security to be held to maturity | |
| — | | |
| (14,794 | ) |
Net cash used in investing activities | |
| (2,593 | ) | |
| (19,313 | ) |
Cash Flows from Financing Activities: | |
| | | |
| | |
Payments on debt | |
| (17,522 | ) | |
| (16,530 | ) |
Tax withholding on share-based awards | |
| (1,168 | ) | |
| (496 | ) |
Payments on principal portion of finance lease liabilities | |
| (2,964 | ) | |
| (3,124 | ) |
Deferred financing costs paid for debt amendments | |
| (53 | ) | |
| (261 | ) |
Purchases of treasury stock and Class A warrants | |
| (39,884 | ) | |
| (11,026 | ) |
Net cash used in financing activities | |
| (61,591 | ) | |
| (31,437 | ) |
Net increase/(decrease) in cash and cash equivalents | |
| 18,866 | | |
| (9,571 | ) |
Cash and cash equivalents at beginning of period | |
| 78,732 | | |
| 83,253 | |
Cash and cash equivalents at end of period | |
$ | 97,598 | | |
$ | 73,682 | |
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, 2023 and the comparable periods of 2022. Revenue days in the quarter ended September 30, 2023 totaled
1,747 compared with 2,035 in the prior year quarter. A summary fleet list by vessel class can be found later in this press release. Prior
period amounts have been updated to conform to current period presentation.
| |
2023 | | |
2022 | |
Three months ended September 30, | |
Spot Earnings | | |
Fixed Earnings | | |
Spot Earnings | | |
Fixed Earnings | |
Jones Act Handysize Product Carriers: | |
| | | |
| | | |
| | | |
| | |
Average rate | |
$ | — | | |
$ | 67,694 | | |
$ | 38,296 | | |
$ | 60,923 | |
Revenue days | |
| — | | |
| 903 | | |
| 55 | | |
| 1,086 | |
Non-Jones Act Handysize Product Carriers: | |
| | | |
| | | |
| | | |
| | |
Average rate | |
$ | 43,834 | | |
$ | 68,875 | | |
$ | 47,779 | | |
$ | 38,911 | |
Revenue days | |
| 189 | | |
| 60 | | |
| 184 | | |
| 92 | |
ATBs: | |
| | | |
| | | |
| | | |
| | |
Average rate | |
$ | — | | |
$ | 44,354 | | |
$ | 41,117 | | |
$ | 35,590 | |
Revenue days | |
| — | | |
| 247 | | |
| 85 | | |
| 99 | |
Lightering: | |
| | | |
| | | |
| | | |
| | |
Average rate | |
$ | 89,255 | | |
$ | — | | |
$ | 71,086 | | |
$ | 46,906 | |
Revenue days | |
| 94 | | |
| — | | |
| 135 | | |
| 49 | |
Alaska (a): | |
| | | |
| | | |
| | | |
| | |
Average rate | |
$ | — | | |
$ | 61,016 | | |
$ | — | | |
$ | 60,438 | |
Revenue days | |
| — | | |
| 254 | | |
| — | | |
| 250 | |
| |
2023 | | |
2022 | |
Nine months ended September 30, | |
Spot Earnings | | |
Fixed Earnings | | |
Spot Earnings | | |
Fixed Earnings | |
Jones Act Handysize Product Carriers: | |
| | | |
| | | |
| | | |
| | |
Average rate | |
$ | 60,505 | | |
$ | 65,807 | | |
$ | 53,710 | | |
$ | 60,067 | |
Revenue days | |
| 40 | | |
| 2,658 | | |
| 585 | | |
| 2,574 | |
Non-Jones Act Handysize Product Carriers: | |
| | | |
| | | |
| | | |
| | |
Average rate | |
$ | 36,622 | | |
$ | 63,239 | | |
$ | 44,720 | | |
$ | 29,632 | |
Revenue days | |
| 677 | | |
| 74 | | |
| 546 | | |
| 273 | |
ATBs: | |
| | | |
| | | |
| | | |
| | |
Average rate | |
$ | — | | |
$ | 43,511 | | |
$ | 41,048 | | |
$ | 35,059 | |
Revenue days | |
| — | | |
| 737 | | |
| 85 | | |
| 458 | |
Lightering: | |
| | | |
| | | |
| | | |
| | |
Average rate | |
$ | 91,900 | | |
$ | — | | |
$ | 65,758 | | |
$ | 46,906 | |
Revenue days | |
| 275 | | |
| — | | |
| 363 | | |
| 49 | |
Alaska (a): | |
| | | |
| | | |
| | | |
| | |
Average rate | |
$ | — | | |
$ | 60,355 | | |
$ | — | | |
$ | 59,799 | |
Revenue days | |
| — | | |
| 797 | | |
| — | | |
| 785 | |
(a)
Excludes one Alaska vessel currently in layup.
OSG
has realigned some of our vessels in the analytical tables to reflect their current employment. The tables affected in the press release
are the TCE Spot and Fixed Rate table and the Vessel Operating Contribution table. Prior year information has been revised to conform
with the current presentation.
Fleet
Information
As
of September 30, 2023, OSG’s operating fleet consisted of 21 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, 2023 | |
Vessel Type | |
Number | | |
Number | | |
Total Vessels | | |
Total dwt (3) | |
Handysize Product Carriers (1) | |
| 5 | | |
| 8 | | |
| 13 | | |
| 619,854 | |
Crude Oil Tankers (2) | |
| 3 | | |
| 1 | | |
| 4 | | |
| 772,194 | |
Refined Product ATBs | |
| 3 | | |
| — | | |
| 3 | | |
| 99,738 | |
Lightering ATBs | |
| 1 | | |
| — | | |
| 1 | | |
| 45,556 | |
Total Operating Fleet | |
| 12 | | |
| 9 | | |
| 21 | | |
| 1,537,342 | |
| (1) | Includes
two owned shuttle tankers, eight chartered-in tankers, and three non-Jones Act MR tankers
that participate in the U.S. Tanker Security Program or are on time charter to the U.S. Military
Sealift Command. |
| (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 September 30, | | |
Nine Months Ended September 30, | |
($ in thousands) | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Time charter equivalent revenues | |
$ | 108,577 | | |
$ | 115,062 | | |
$ | 313,438 | | |
$ | 312,229 | |
Add: Voyage expenses | |
| 6,858 | | |
| 7,997 | | |
| 22,413 | | |
| 32,813 | |
Shipping revenues | |
$ | 115,435 | | |
$ | 123,059 | | |
$ | 335,851 | | |
$ | 345,042 | |
Vessel
Operating Contribution
Vessel
operating contribution, a non-GAAP measure, is TCE revenues minus vessel expenses and charter hire expenses. The Company changed the
presentation of the table below to reflect the current business operations of the Company’s vessels. Accordingly, prior period
amounts have been updated to conform to current period presentation.
| |
Three Months Ended September 30, | | |
Nine Months Ended September 30, | |
($ in thousands) | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Specialized businesses | |
$ | 31,981 | | |
$ | 31,739 | | |
$ | 88,312 | | |
$ | 89,385 | |
Jones Act handysize tankers | |
| 12,709 | | |
| 8,046 | | |
| 32,868 | | |
| 10,166 | |
Jones Act ATBs | |
| 7,685 | | |
| 7,104 | | |
| 20,933 | | |
| 15,209 | |
Vessel operating contribution | |
| 52,375 | | |
| 46,889 | | |
| 142,113 | | |
| 114,760 | |
Depreciation and amortization | |
| 17,003 | | |
| 17,902 | | |
| 49,500 | | |
| 51,058 | |
General and administrative | |
| 7,173 | | |
| 6,556 | | |
| 21,614 | | |
| 20,929 | |
Operating income | |
$ | 28,199 | | |
$ | 22,431 | | |
$ | 70,999 | | |
$ | 42,773 | |
(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) | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Net income | |
$ | 17,592 | | |
$ | 13,248 | | |
$ | 42,033 | | |
$ | 16,479 | |
Income tax expense | |
| 4,471 | | |
| 1,522 | | |
| 9,131 | | |
| 2,074 | |
Interest expense, net | |
| 7,779 | | |
| 8,229 | | |
| 24,019 | | |
| 24,869 | |
Depreciation and amortization | |
| 17,003 | | |
| 17,902 | | |
| 49,500 | | |
| 51,058 | |
EBITDA | |
| 46,845 | | |
| 40,901 | | |
| 124,683 | | |
| 94,480 | |
Amortization classified in charter hire and vessel expenses | |
| 273 | | |
| 260 | | |
| 820 | | |
| 545 | |
Interest expense classified in charter hire expenses | |
| 104 | | |
| 308 | | |
| 426 | | |
| 935 | |
Non-cash stock based compensation expense | |
| 894 | | |
| 846 | | |
| 2,556 | | |
| 3,237 | |
Adjusted EBITDA | |
$ | 48,116 | | |
$ | 42,315 | | |
$ | 128,485 | | |
$ | 99,197 | |
(C)
Total Cash and Investments
($ in thousands) | |
September 30, 2023 | | |
December 31, 2022 | |
Cash and cash equivalents | |
$ | 97,575 | | |
$ | 78,680 | |
Restricted cash | |
| 23 | | |
| 52 | |
Investment security to be held to maturity | |
| 14,900 | | |
| 14,803 | |
Total cash and investments | |
$ | 112,498 | | |
$ | 93,535 | |
v3.23.3
Cover
|
Nov. 06, 2023 |
Cover [Abstract] |
|
Document Type |
8-K
|
Amendment Flag |
false
|
Document Period End Date |
Nov. 06, 2023
|
Entity File Number |
001-06479
|
Entity Registrant Name |
Overseas
Shipholding Group, Inc.
|
Entity Central Index Key |
0000075208
|
Entity Tax Identification Number |
13-2637623
|
Entity Incorporation, State or Country Code |
DE
|
Entity Address, Address Line One |
Two
Harbor Place
|
Entity Address, Address Line Two |
302
Knights Run Avenue
|
Entity Address, Address Line Three |
Suite 1200
|
Entity Address, City or Town |
Tampa
|
Entity Address, State or Province |
FL
|
Entity Address, Postal Zip Code |
33602
|
City Area Code |
(813)
|
Local Phone Number |
209-0600
|
Written Communications |
false
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Title of 12(b) Security |
Class A Common Stock (par
value $0.01 per share)
|
Trading Symbol |
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|
Security Exchange Name |
NYSE
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