Global Ship Lease, Inc. (NYSE:GSL) (the “Company”, “Global Ship
Lease” or “GSL”), an owner of containerships, announced today its
unaudited results for the three and six month periods ended June
30, 2021.
Second Quarter 2021 and Year To Date
Highlights
- Reported operating revenue of $82.9 million
for the second quarter 2021. Operating revenue for the six months
ended June 30, 2021, was $155.9 million.
- Reported net income available to common
shareholders of $30.1 million for the second quarter 2021 after
$7.8 million net gain from sale of the 2,272 TEU 2001 built,
containership, La Tour and a prepayment fee of $1.4 million on the
completion of the refinancing of our Deutsche, CIT, HCOB, Entrust,
Blue Ocean Credit Facility (“Odyssia Credit Facilities”), giving
normalized net income(3) for the quarter of $23.7 million.
- For the six months ended June 30, 2021, net
income available to common shareholders was $34.2 million, after
$5.8 million premium paid on the full optional redemption of our
outstanding 9.875% Senior Secured Notes due 2022 (“2022 Notes”) on
January 20, 2021, an associated non-cash write off of deferred
financing charges of $3.7 million and of original issue discount of
$1.1 million, a non-cash charge of $1.3 million for accelerated
stock based compensation expense, a prepayment fee of $1.6 million
on the partial repayment of the Blue Ocean Junior Credit Facility,
the prepayment fee of $1.4 million on the completion of the
refinancing of our Odyssia Credit Facilities and the $7.8 million
net gain from sale of La Tour, giving normalized net income(3) for
the six months of $41.5 million.
- Generated $51.5 million of Adjusted EBITDA(3)
for the second quarter 2021. Adjusted EBITDA for the six months
ended June 30, 2021 was $96.2 million.
- Earnings per share for the second quarter of
2021 was $0.83. Earnings per share for the six months ended June
30, 2021 was $1.00.
- Declared a dividend of $0.25 per Class A
common share for the second quarter of 2021 to be paid on September
3, 2021 to common shareholders as of August 23, 2021. Paid a
dividend of $0.25 per Class A common share for the first quarter
2021 on June 3, 2021 to common shareholders of record as of May 24,
2021, more than double the $0.12 per Class A common share announced
on January 12, 2021, as a result of fleet growth and success in
rechartering.
- During the second quarter 2021, raised $23.6
million net proceeds under the ATM program for the 8.75% Series B
Preferred Shares (“Series B Preferred Shares”). During the period
from July 1, 2021 through August 4, 2021, a further $6.4 million
net proceeds was raised under this ATM program. Since the inception
of this ATM program a total of $60.8 million net proceeds has been
raised.
- During the second quarter 2021, raised a
further $7.6 million net proceeds under the ATM program for the
8.00% Senior Unsecured Notes due 2024 (“2024 Notes”). The total
outstanding 2024 Notes as at June 30, 2021 was $117.5 million,
which includes the issuance of $35.0 million of the 2024 Notes to
the sellers of 12 vessels, as part of the consideration. Since the
inception of this ATM program a total of $50.9 million net proceeds
has been raised.
- During the period from April 1, 2021 through
August 4, 2021, took delivery of seven 6,000 TEU Post-Panamax
containerships purchased for an aggregate price of $116.0 million,
and chartered them back to Maersk Line, as announced in the press
release of February 9, 2021. In April 2021, entered into a new
credit facility with HCOB for six of these seven ships and drew
down all tranches of $10.7 million each, amounting to a total of
$64.2 million. One tranche was drawn down in July. The seventh
vessel was financed by a sale and leaseback agreement with Neptune
for $14.7 million.
- On April 13, 2021, Kelso and Maas
Capital sold an aggregate of 5,175,000 Class A common shares
in an underwritten public offering at $12.50 per share.
Our free float increased, although we did not receive any proceeds
from the sale of these Class A common shares.
- On April 16, 2021, drew down in full on a new
$51.7 million secured credit facility to refinance one of the three
existing tranches of the Odyssia Credit Facilities that had a
maturity date on June 30, 2022. The second tranche was refinanced
on May 7, 2021 with a new $51.7 million secured credit facility.
The third tranche was refinanced on May 27, 2021, with a new $54.0
million sale and leaseback agreement with CMBFL.
- On June 8, 2021, announced agreement to
purchase from Borealis Finance LLC, 12 containerships with an
average size of approximately 3,000 TEU and a weighted average age
of 11 years for an aggregate purchase price of $233.9 million. All
12 vessels were delivered between July 15 and July 29, 2021. In
July 2021, entered into a new syndicated credit facility with HCOB
and Credit Agricole for a total of $140.0 million to part finance
the purchase price. The remaining purchase price was financed by
cash on hand and the issuance of $35.0 million of our existing 2024
Notes to the sellers of the ships.
- On June 16, 2021, announced agreement to
purchase four 5,470 TEU ultra-high reefer capacity Panamax
containerships with an average age of approximately 11 years for an
aggregate purchase price of $148.0 million. On delivery, the ships
will be chartered to a leading liner operator for a firm period of
three years each, with a charterer’s option for a period of an
additional three years. The ships are scheduled for delivery
during the third and fourth quarter of 2021. The purchase price is
expected to be covered by cash on hand and new senior secured
debt.
- On June 30, 2021, sold the 2,272 TEU 2001
built, La Tour, for net proceeds of $16.5 million resulting in a
net gain of $7.8 million.
- On July 12, 2021, Moody’s upgraded the
Corporate Family Rating to B1 / Stable from B2 / Positive.
- Between January 1 and August 4, 2021,
including the charters on the 23 ships we have either purchased or
contracted to purchase year to date, we have added 40 charters
(including extensions), representing approximately $906 million of
contracted revenues and $662 million of expected aggregate Adjusted
EBITDA - calculated on the basis of the median firm periods of the
respective charters. 18 charters were for 1,100 – 3,500 TEU feeder
ships, eight were for 4,250 – 5,470 TEU Panamax ships, and 14 were
for 5,900 – 6,800 TEU Post-Panamaxes. Charter durations ranged from
approximately 21 months to five years, with shorter durations for
the smaller ships and longer durations for the larger ships. Rates
were up significantly against those previously contracted.
George Youroukos, Executive Chairman of Global
Ship Lease, stated, “Moving into the summer months, the
containership charter market has continued to reach new heights,
driven by strong underlying containerized trade and an ongoing
tightness in the supply of ships. These strong fundamentals,
combined with continued port congestion and a generally
overburdened logistics supply chain, have resulted in effectively
full employment of the global fleet, which has, in turn, driven
charter rates to record highs and has led to extended charter
durations, now several times what they have been throughout the
last decade. Looking forward, we are very encouraged to see a
highly constrained supply of containerships through at least
2023/2024, particularly in the mid-sized asset classes where we
focus, and a prospective long tail of containership demand
supported by both high consumer demand for imported goods and
anticipated restocking simply to restore retail inventories to more
normalized levels. We also factor in the tougher environmental
regulations that are set to come into effect starting in January
2023. Compliance with these new regulations will not only have a
positive environmental impact by reducing emissions, but will also
require much of the global containership fleet to slow down
substantially, thus reducing effective capacity, with a one knot
reduction in speed equating to a reduction of approximately 5-6% in
fleet capacity.”
“Against this backdrop, we have remained very
active in acquiring high-quality containerships with strong return
profiles and minimal downside risk. Already in 2021, we have grown
our fleet by over 50% while adding over $900 million of contracted
revenues and over $660 million of contracted estimated Adjusted
EBITDA. Our ability to continuously engage in immediately accretive
growth throughout the mid-sized and smaller vessel classes, and to
unlock the full potential of vessels with best-in-class reefer
capacity, has proven the strength and scalability of the Global
Ship Lease platform while also dramatically expanding our earnings
and contracted revenues. Even as we continue to grow by taking
delivery of recently acquired vessels and pursuing further such
acquisitions as meet our criteria, we also expect to realize
meaningful earnings growth in the coming months as a number of our
ships renew charters in the hottest market in recent memory. This
combination of highly supportive fundamentals, a proven strategy,
and clear visibility on both contracted cashflows and attractive
growth opportunities puts GSL in a strong position to continue
generating excellent returns and ensuring a reliable and appealing
dividend for our shareholders.”
Ian Webber, Chief Executive Officer of Global
Ship Lease, commented, “In tandem with the commercial success that
we have achieved, with new multi-year charters ensuring that we
will benefit from the current market strength well into the future,
we have continually seized opportunities to optimize our balance
sheet and improve our long-term financial strength. In the first
seven months of 2021, by the full redemption of our restrictive
2022 Senior Secured Notes and our other refinancing initiatives, we
have refinanced $377.2 million of debt, removing all material
maturities through end 2022, and dramatically improved our debt
service and amortization profile while reducing our blended cost of
debt from 6.3% to 5.2%. With the enhanced financial capabilities
provided by these improved borrowing terms and affirmed by a
further credit rating upgrade from Moody’s early in the third
quarter, we remain continually active to ensure that the true
strength and long-term prospects of our business are fully
reflected throughout our balance sheet and capital structure.”
SELECTED FINANCIAL DATA – UNAUDITED
(thousands of U.S. dollars)
|
Three |
Three |
Six |
Six |
|
months ended |
months ended |
monthsended |
monthsended |
|
June 30, 2021 |
June 30, 2020 |
June 30, 2021 |
June 30, 2020 |
|
|
|
|
|
Operating Revenue
(1) |
82,871 |
71,376 |
155,851 |
142,323 |
Operating Income |
45,404 |
29,682 |
75,676 |
50,078 |
Net Income
(2) |
30,065 |
12,605 |
34,224 |
13,226 |
Adjusted EBITDA
(3) |
51,469 |
42,655 |
96,212 |
82,634 |
Normalized Net Income
(3) |
23,733 |
13,943 |
41,498 |
24,420 |
|
|
|
|
|
(1) Operating Revenue is net of address
commissions which represents a discount provided directly to a
charterer based on a fixed percentage of the agreed upon charter
rate. Brokerage commissions are included in “Time charter and
voyage expenses”.
(2) Net Income available to common
shareholders.
(3) Adjusted EBITDA and Normalized Net Income
are non-U.S. Generally Accepted Accounting Principles (“U.S. GAAP”)
financial measures, as explained further in this press release, and
are considered by Global Ship Lease to be a useful measure of its
performance. For reconciliations of these non-U.S. GAAP financial
measure to net income, the most directly comparable U.S. GAAP
financial measure, please see “Reconciliation of Non-U.S. GAAP
Financial Measures” below.
Revenue and Utilization
Revenue from fixed-rate, mainly long-term,
time-charters was $82.9 million in the three months ended June 30,
2021, up $11.5 million (or 16.1%) on revenue of $71.4 million for
the prior year period. The increase in revenue is principally due
to (i) a 3.9% increase in ownership days, due to the addition of
six vessels during the second quarter 2021, to 4,255 in the
quarter, compared to 4,095 in the second quarter 2020 (ii) a
reduction in planned offhire days from 210 in the second quarter of
2020 to 168, (iii) increased revenue on charter renewals at higher
rates from Maira, Nikolas, Dolphin II, Athena, Orca I, Ian H, GSL
Ningbo and Julie, partially offset by decreases in revenue on
renewals at lower rates from Maira XL, CMA CGM Alcazar, CMA CGM
Chateau d’If and MSC Tianjin and, (iv) less idle time, down to 12
days in the second quarter 2021 from 194 in the second quarter 2020
mainly due to GSL Matisse and Utrillo which were held for sale as
at June 30, 2020 and were sold in July 2020. The 168 days of
offhire for dry dockings in the second quarter 2021 were
attributable to five regulatory dry-docking. With 12 days idle time
and 36 days of unplanned offhire days, utilization for the second
quarter 2021 was 94.9%. In the comparative period of 2020, the 210
days of offhire for dry-dockings were mainly attributable to three
dry-dockings in progress as of June 30, 2020, one for regulatory
reasons and two for scrubber installation on Agios Dimitrios and
MSC Qingdao. With 161 days idle time for GSL Matisse and Utrillo
prior to their sale, 33 idle days for Julie and GSL Christen
between charters and 20 days of unplanned offhire days, utilization
was 89.6%.
For the six months ended June 30, 2021, revenue
was $155.9 million, up $13.6 million (or 9.6%) on revenue of $142.3
million in the comparative period, mainly due to the factors noted
above.
The table below shows fleet utilization for the
three and six months ended June 30, 2021 and 2020, and for the
years ended December 31, 2020, 2019, 2018 and 2017.
|
Three months ended |
Six months ended |
|
|
|
|
|
June 30, |
June 30, |
June 30, |
June 30, |
|
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Days |
2021 |
2020 |
2021 |
2020 |
|
2020 |
2019 |
2018 |
2017 |
|
|
|
|
|
|
|
|
|
|
Ownership days |
4,255 |
4,095 |
8,125 |
8,111 |
|
16,044 |
14,326 |
7,675 |
6,570 |
Planned offhire - scheduled
dry-dock |
(168) |
(210) |
(195) |
(434) |
|
(687) |
(537) |
(34) |
(62) |
Unplanned offhire |
(36) |
(20) |
(61) |
(59) |
|
(95) |
(105) |
(17) |
(40) |
Idle time |
(12) |
(194) |
(27) |
(250) |
|
(338) |
(164) |
(47) |
- |
Operating days |
4,039 |
3,671 |
7,842 |
7,368 |
|
14,924 |
13,520 |
7,577 |
6,468 |
|
|
|
|
|
|
|
|
|
|
Utilization |
94.9% |
89.6% |
96.5% |
90.8% |
|
93.0% |
94.4% |
98.7% |
98.4% |
Two dry-dockings for regulatory requirements
were completed in the quarter and as of June 30, 2021, three such
dry-docking were in progress. In 2021, we anticipate eight further
dry dockings for the existing fleet.
Vessel Operating Expenses
Vessel operating expenses, which primarily
include costs of crew, lubricating oil, repairs, maintenance,
insurance and technical management fees, were up 16.1% to $28.1
million for the second quarter 2021, compared to $24.2 million in
the comparative period. The increase of $3.9 million was mainly due
to 160 or 3.9% net additional ownership days in the second quarter
2021 as a result of the acquisition and delivery of six vessels
since April 1, 2021, all of which are Post-Panamax with on average
higher daily operating expenses, offset by the disposal of GSL
Matisse and Utrillo in July 2020 and due to crew replacement and
delivery of spares which were significantly reduced in prior year
periods as a result of COVID-19 restrictions and delays. The
average cost per ownership day in the quarter was $6,609, compared
to $5,902 for the prior year period, up $707 per day, or 12.0%.
For the six months ended June 30, 2021, vessel
operating expenses were $52.4 million, or an average of $6,450 per
day, compared to $49.7 million in the comparative period, or $6,125
per day, an increase of $325 per ownership day, or 5.3%.
Time Charter and Voyage Expenses
Time charter and voyage expenses comprise mainly
commission paid to ship brokers, the cost of bunker fuel for
owner’s account when a ship is off-hire or idle and miscellaneous
owner’s costs associated with a ship’s voyage. Time charter and
voyage expenses were $2.1 million for the second quarter 2021,
compared to $2.7 million in the second quarter of 2020. The
decrease is mainly due to the decrease in idle days and unplanned
off hire days resulting in lower costs for bunker fuel for owner’s
account.
For the six months ended June 30, 2021, time
charter and voyage expenses were $3.9 million, or an average of
$479 per day, compared to $6.2 million in the comparative period,
or $762 per day, a decrease of $283 per ownership day, or
37.1%.
Depreciation and AmortizationDepreciation and
amortization for the second quarter 2021 was $13.1 million,
compared to $11.6 million in the second quarter of 2020. The
increase in the amortization expense is due to the nine drydockings
that have been completed since July 1, 2020. Depreciation was
increased due to the acquisition of six vessels since April 1,
2021.
Depreciation for the six months ended June 30,
2021 was $25.5 million, compared to $23.1 million in the
comparative period, with the increase being due to the addition of
six vessels since July 1, 2020.
Gain on sale of vessel and impairment of vessels
The 2001-built, 2,272 TEU containership, La
Tour, was sold on June 30, 2021 for net proceeds of $16.5 million
resulting in a gain of $7.8 million. As of March 31, 2020, we had
an expectation that the 1999-built, 2,200 TEU feeder ships, GSL
Matisse and Utrillo, would be sold before the end of their
previously estimated useful life, and as a result performed an
impairment test of these two asset groups and an impairment charge
of $7.6 million was recognized. An additional impairment charge of
$0.9 million was recognized on these two vessels in the three
months ended June 30, 2020 for a total of $8.5 million in the six
month period ended June 30, 2020. The two vessels were sold in July
2020.
General and Administrative Expenses
General and administrative expenses were $1.9
million in the second quarter 2021, compared to $2.3 million in the
second quarter of 2020. The decrease was mainly due to the non-cash
effect of accelerated stock based compensation expense recognized
in the second quarter of 2020. The average general and
administrative expense per ownership day for the second quarter
2021 was $436, compared to $567 in the comparative period, a
decrease of $131 or 23.1%.
For the six months ended June 30, 2021, general
and administrative expenses were $6.1 million, compared to $4.8
million in the comparative period mainly due to the non-cash effect
of accelerated stock based compensation expense recognized in the
first quarter of 2021. The average general and administrative
expense per ownership day for the six-month period ended June 30,
2021 was $755, compared to $587 in the comparative period, an
increase of $168 or 28.6% mainly due to the non-cash effect of the
accelerated stock based compensation expense.
Adjusted EBITDA
Adjusted EBITDA was $51.5 million for the second
quarter 2021, up from $42.7 million for the second quarter of 2020,
with the net increase being mainly due to the increased operating
days and the addition of six vessels since July 1, 2020.
Adjusted EBITDA for the six months ended June
30, 2021 was $96.2 million, compared to $82.6 million for the
comparative period, with the increase being due to the addition of
six vessels since July 1, 2020.
Interest Expense and Interest Income
Debt as at June 30, 2021 totaled $835.4 million,
comprising $684.2 million secured debt collateralized by our
vessels, $68.7 million from sale and leaseback financing
transactions and $82.5 million of unsecured indebtedness on our
2024 Notes. As of June 30, 2021, none of our vessels were
unencumbered.
Debt as at June 30, 2020 totaled $845.0 million,
comprising $267.0 million of indebtedness on our 2022 Notes and
$4.7 million of indebtedness under a secured term loan, both cross
collateralized by 18 vessels in the legacy GSL fleet, $59.0 million
of unsecured indebtedness on our 2024 Notes, and $514.3 million
other secured debt collateralized by our other vessels. As of June
30, 2020, five of our vessels were unencumbered.
Interest and other finance expenses for the
second quarter 2021 were $14.0 million, a decrease of $2.0 million,
or 12.5%, on the interest and other finance expenses for the second
quarter of 2020 of $16.0 million. The decrease is mainly due to the
full repayment of our expensive 2022 Notes in January 2021 and the
partial repayment of our Blue Ocean Junior Credit Facility in
February 2021 offset by the prepayment fee of $1.4 million paid in
the second quarter on the repayment and completion of the
refinancing of our Odyssia Credit Facilities and the interest on
the new loan with HCOB and new sale and leaseback agreement with
Neptune.
Interest and other finance expenses for the six
months ended June 30, 2021 were $39.3 million, an increase of $3.8
million, or 10.7%, on the interest and other finance expenses for
the comparative period, of $35.5 million. The increase is mainly
due to $5.8 million premium paid on the redemption in full of our
2022 Notes in January 2021 compared to $2.3 million premium paid on
the redemption $46.0 million of the 2022 Notes in March 2020 plus
the acceleration of deferred financing charges of $3.7 million, and
the acceleration of amortization of original issue discount
associated with the redemption of the 2022 Notes of $1.1 million
plus the prepayment fee of $1.6 million paid on the partial
repayment of our Blue Ocean Junior Credit Facility, plus the
prepayment fee of $1.4 million paid on the repayment and completion
of the refinancing of our Odyssia Credit Facilities and the
interest on a new loan with HCOB and a new sale and leaseback
agreement with Neptune, offset by decrease in LIBOR.
Interest income for the second quarter 2021 was
$0.1 million, compared to $0.2 million for the second quarter of
2020.Interest income for the six months period ended June 30, 2021
was $0.3 million, compared to $0.8 million for the comparative
period.
Other Income/(Expenses), Net
Other income, net was $0.6 million in the three
months ended June 30, 2021, compared to an expense, net of $0.4
million in the second quarter of 2020.
Other income, net was $0.9 million in the six
months period ended June 30, 2021, compared to an other expense,
net of $0.4 million in the comparative period.
Taxation
Taxation for the three months ended June 30,
2021 was nil, compared to a credit of $3,000 in the second quarter
of 2020.
Taxation for the six months ended June 30, 2021
was nil, compared to a credit of $3,000 in the six months ended
June 30, 2020.
Earnings Allocated to Preferred Shares
Our Series B Preferred Shares carry a coupon of
8.75%, the cost of which for the second quarter 2021 was $2.0
million, compared to $0.9 million for the second quarter of 2020.
The increase is due to additional Series B Preferred Shares issued
under our ATM program since June 2020. The cost was $3.5 million in
the six months ended June 30, 2021, compared to $1.8 million for
the comparative period.
Net Income Available to Common ShareholdersNet
income available to common shareholders for the three months ended
June 30, 2021 was $30.1 million, including $7.8 million net gain on
the sale of La Tour and the prepayment fee of $1.4 million on the
completion of the refinancing of our Odyssia Credit Facilities. Net
income available to common shareholders for the prior period was
$12.6 million after $0.9 million impairment charges associated with
the decision to dispose of GSL Matisse and Utrillo and $0.4 million
for accelerated stock based compensation expense due to
vesting.
Net income available to common shareholders for
the six months ended June 30, 2021 was $34.2 million, after the
$7.8 million net gain on the sale of La Tour, the prepayment fee of
$1.6 million on the partial repayment of our Blue Ocean Junior
Credit Facility, the prepayment fee of $1.4 million on the
completion of the refinancing of our Odyssia Credit Facilities, the
non-cash effect of $1.3 million for accelerated stock based
compensation expense due to vesting and new awards of fully vested
incentive shares, $5.8 million premium paid on the redemption in
full of our 2022 Notes in January 2021, and associated accelerated
amortization of $3.7 million deferred financing charges and $1.1
million original issue discount. Net income available to common
shareholders for the prior period was $13.2 million after $8.5
million non-cash impairment charges associated with the decision to
dispose of GSL Matisse and Utrillo, the non-cash effect of $0.4
million for accelerated stock based compensation expense due to
vesting, and $2.3 million premium paid on the redemption of $46.0
million of our 2022 Notes in February 2020.
Normalized net income for the three months ended
June 30, 2021, was $23.7 million, before the $7.8 million net gain
on the sale of La Tour and the prepayment fee of $1.4 million paid
on the repayment of our Deutsche, CIT, HCOB, Entrust Blue Ocean
Credit Facility. Normalized net income for the three months ended
June 30, 2020, was $13.9 million, before the $0.9 million
impairment charges associated with the decision to dispose of GSL
Matisse and Utrillo and $0.4 million for accelerated stock based
compensation expense due to vesting.
Normalized net income for the six months period
ended June 30, 2021 was $41.5 million before the $7.8 million net
gain on the sale of La Tour, a prepayment fee of $1.6 million on
the partial repayment of our Blue Ocean Junior Credit Facility, the
prepayment fee of $1.4 million on the completion of the refinancing
of our Odyssia Credit Facilities, the non-cash effect of $1.3
million for accelerated stock based compensation expense, $5.8
million premium paid on the redemption in full of our 2022 Notes in
January 2021, and the associated accelerated amortization of $3.7
million deferred financing charges and $1.1 million original issue
discount. Normalized net income in the comparative period was $24.4
million, before the $8.5 million non-cash impairment charges
associated with the decision to dispose of GSL Matisse and Utrillo,
the non-cash effect of $0.4 million for accelerated stock based
compensation expense and $2.3 million premium paid on the
redemption of $46.0 million of our 2022 Notes in February 2020.
Fleet
Our fleet comprises 65 containerships, of which
- as at August 4, 2021 – four have yet to be delivered. The first
table below presents the fleet prior to the vessel acquisitions
announced year to date (the “Status Quo Fleet”); the second shows
the 23 ships purchased and contracted to be purchased year to date
(the “Purchased Fleet”).
Status Quo Fleet
Vessel Name |
Capacity in TEUs |
Lightweight (tons) |
Year Built |
Charterer |
Earliest Charter Expiry Date |
Latest Charter Expiry Date |
Daily Charter Rate $ |
|
|
|
|
|
|
|
|
CMA CGM Thalassa |
11,040 |
38,577 |
2008 |
CMA CGM |
4Q25 |
1Q26 |
47,200 |
UASC Al Khor(1) |
9,115 |
31,764 |
2015 |
Hapag-Lloyd |
1Q22 |
2Q22 |
34,000 |
Anthea Y(1) |
9,115 |
31,890 |
2015 |
COSCO |
3Q23 |
4Q23 |
38,000 |
Maira XL(1) |
9,115 |
31,820 |
2015 |
ONE |
2Q22 |
3Q22 |
31,650 |
MSC Tianjin |
8,603 |
34,325 |
2005 |
MSC |
2Q24 |
3Q24 |
19,000 (2) |
MSC Qingdao |
8,603 |
34,609 |
2004 |
MSC |
2Q24 |
3Q24 |
23,000 (2) |
GSL Ningbo |
8,603 |
34,340 |
2004 |
MSC |
1Q23 |
3Q23 |
22,500 |
GSL Eleni |
7,847 |
29,261 |
2004 |
Maersk |
3Q24 |
4Q24 (3) |
16,500 (3) |
GSL Kalliopi |
7,847 |
29,105 |
2004 |
Maersk |
4Q22 |
4Q24 (3) |
14,500 (3) |
GSL Grania |
7,847 |
29,190 |
2004 |
Maersk |
4Q22 |
4Q24 (3) |
14,500 (3) |
Mary(1) |
6,927 |
23,424 |
2013 |
CMA CGM |
3Q23 |
4Q23 |
25,910 |
Kristina(1) |
6,927 |
23,421 |
2013 |
CMA CGM |
2Q24 |
3Q24 |
25,910 |
Katherine (1) |
6,927 |
23,403 |
2013 |
CMA CGM |
1Q24 |
2Q24 |
25,910 |
Alexandra (1) |
6,927 |
23,348 |
2013 |
CMA CGM |
1Q24 |
2Q24 |
25,910 |
Alexis (1) |
6,882 |
23,919 |
2015 |
CMA CGM |
1Q24 |
2Q24 |
25,910 |
Olivia I (1) |
6,882 |
23,864 |
2015 |
CMA CGM |
1Q24 |
2Q24 |
25,910 |
GSL Christen |
6,840 |
27,954 |
2002 |
Maersk |
3Q23 |
4Q23 |
35,000 (4) |
GSL Nicoletta |
6,840 |
28,070 |
2002 |
MSC(5) |
3Q24 |
4Q24 |
13,500(5) |
CMA CGM Berlioz |
6,621 |
26,776 |
2001 |
CMA CGM |
4Q25 |
1Q26 |
34,000(6) |
Agios Dimitrios |
6,572 |
24,931 |
2011 |
MSC |
4Q23 |
1Q24 |
20,000 |
GSL Vinia |
6,080 |
23,737 |
2004 |
Maersk |
3Q24 |
1Q25 |
13,250 |
GSL Christel Elisabeth |
6,080 |
23,745 |
2004 |
Maersk |
2Q24 |
1Q25 |
13,250 |
Tasman |
5,936 |
25,010 |
2000 |
Maersk |
1Q22 |
3Q23(7) |
12,500(7) |
ZIM Europe |
5,936 |
25,010 |
2000 |
ZIM |
1Q24 |
2Q24 |
14,500(8) |
Ian H |
5,936 |
25,128 |
2000 |
ZIM |
2Q24 |
3Q24 |
32,500(8) |
Dolphin II |
5,095 |
20,596 |
2007 |
OOCL |
1Q22 |
2Q22 |
24,500 |
Orca I |
5,095 |
20,633 |
2006 |
Maersk |
2Q24 |
3Q25 |
21,000 (9) |
CMA CGM Alcazar |
5,089 |
20,087 |
2007 |
CMA CGM |
3Q26 |
4Q26 |
16,000 (10) |
GSL Château d’If |
5,089 |
19,994 |
2007 |
Hapag-Lloyd |
4Q26 |
1Q27 |
14,500 (10) |
CMA CGM Jamaica |
4,298 |
17,272 |
2006 |
CMA CGM |
3Q22 |
1Q23 |
25,350 |
CMA CGM Sambhar |
4,045 |
17,429 |
2006 |
CMA CGM |
3Q22 |
1Q23 |
25,350 |
CMA CGM America |
4,045 |
17,428 |
2006 |
CMA CGM |
3Q22 |
1Q23 |
25,350 |
GSL Valerie |
2,824 |
11,971 |
2005 |
ZIM |
3Q21 |
1Q22 |
13,250 |
Athena |
2,762 |
13,538 |
2003 |
MSC(11) |
2Q24 |
2Q24 |
21,500(11) |
Maira |
2,506 |
11,453 |
2000 |
Hapag-Lloyd |
1Q23 |
2Q23 |
14,450 |
Nikolas |
2,506 |
11,370 |
2000 |
CMA CGM |
1Q23 |
1Q23 |
16,000 |
Newyorker |
2,506 |
11,463 |
2001 |
CMA CGM |
1Q24 |
2Q24 |
20,700(12) |
Manet |
2,272 |
11,727 |
2001 |
Sea-Lead |
4Q21 |
4Q21 |
12,850 |
Keta |
2,207 |
11,731 |
2003 |
OOCL |
4Q24 |
1Q25 |
9,400 (13) |
Julie |
2,207 |
11,731 |
2002 |
Sea Consortium |
1Q23 |
2Q23 |
20,000(14) |
Kumasi |
2,207 |
11,791 |
2002 |
CMA CGM |
3Q21 |
4Q21 |
9,300 |
Marie Delmas |
2,207 |
11,731 |
2002 |
CMA CGM |
3Q21 |
4Q21 |
9,300 |
|
|
|
|
|
|
|
|
(1) Modern design, high reefer capacity,
fuel-efficient vessel.(2) MSC Tianjin.
Chartered at $23,000 per day through dry-docking in 2Q2021;
thereafter at $19,000 per day, due to cancellation of scrubber
installation. MSC Qingdao has a scrubber installed and will
continue to trade at a rate of $23,000 per
day.(3) GSL Eleni delivered 2Q2019 and is
chartered for five years; GSL Kalliopi (delivered 4Q2019) and GSL
Grania (delivered 3Q2019) are chartered for three years plus two
successive periods of one year at the option of the charterer.
During the option periods the charter rates for GSL Kalliopi and
GSL Grania are $18,900 per day and $17,750 per day
respectively.(4) GSL Christen. Chartered at
$15,000 per day through May 2021, at which time the rate increased
to $35,000 per day.(5) GSL Nicoletta. Chartered to MSC
at $13,500 per day to 3Q21; thereafter to be chartered to Maersk at
$35,750 per day.(6) CMA CGM Berlioz.
Chartered at $34,000 per day through December 2021, at which time
the rate will increase to $37,750 per
day.(7) Tasman. 12-month extension at
charterer’s option callable in 2Q2022, at an increased rate of
$20,000 per day.(8) A package agreement with
ZIM, for direct charter extensions on two 5,900 TEU ships: Ian H,
at a rate of $32,500 per day from May 2021, and ZIM Europe
(formerly Dimitris Y), at a rate of $24,250 per day, from May
2022.(9) Orca I. Chartered at $10,000 per
day through April 2021, at which time the rate increased to $21,000
per day through to the median expiry of the charter in 2Q2024;
thereafter the charterer has the option to charter the vessel for a
further 12-14 months at the same rate.(10) CMA CGM
Alcazar and GSL Chateau d’If. Both ships have been forward fixed to
CMA CGM for five years at $35,500 per day, with the new charters
due to commence in 4Q2021;(11) Athena. Chartered to
MSC at a rate of $9,000 per day through April 2021, at which time
the vessel was drydocked. Thereafter chartered to Hapag-Lloyd at
$21,500 per day;(12) Newyorker. Drydocked in 2Q2021;
thereafter chartered to CMA CGM at $20,700 per day;(13)
Keta. Chartered to OOCL at $9,400 per day through 3Q2021.
Thereafter forward fixed to CMA CGM at $25,000 per day;(14)
Julie. Chartered to Sea Consortium at a rate of $9,250 per
day through May 2021; thereafter extended at $20,000 per
day.Purchased Fleet |
|
|
Vessel Name |
Capacity in TEUs |
Lightweight (tons) |
Year Built |
Charterer |
Earliest
Charter Expiry Date |
Latest Charter Expiry Date |
Daily Charter Rate $ |
Actual/ Estimated Delivery date |
|
|
|
|
|
|
|
|
|
GSL Dorothea |
6,008 |
24,243 |
2001 |
Maersk |
2Q24 |
4Q26 |
Note(1) |
26/04/2021 |
GSL Arcadia |
6,008 |
24,858 |
2000 |
Maersk |
2Q24 |
1Q26 |
Note(1) |
26/04/2021 |
GSL Violetta |
6,008 |
24,873 |
2000 |
WHL/Maersk |
4Q24 |
2Q26 |
Note(1) |
28/04/2021 |
tbr GSL Maria |
6,008 |
24,414 |
2001 |
ONE/Maersk |
3Q24 |
2Q27 |
Note(1) |
28/04/2021 |
GSL Tegea |
6,008 |
24,308 |
2001 |
Maersk |
2Q24 |
4Q26 |
Note(1) |
17/05/2021 |
tbr GSL Melita |
6,008 |
24,848 |
2001 |
Maersk |
2Q24 |
4Q26 |
Note(1) |
25/05/2021 |
GSL MYNY |
6,008 |
24,873 |
2000 |
Maersk |
3Q24 |
4Q26 |
Note(1) |
28/07/2021 |
tbr GSL Tripoli |
5,470 |
22,259 |
2009 |
Maersk |
3Q24 |
4Q27 |
Note(2) |
3/4Q21 |
tbr GSL Kithira |
5,470 |
22,108 |
2009 |
Maersk |
3Q24 |
4Q27 |
Note(2) |
3/4Q21 |
tbr GSL Tinos |
5,470 |
22,067 |
2010 |
Maersk |
3Q24 |
4Q27 |
Note(2) |
3/4Q21 |
tbr GSL Syros |
5,470 |
22,098 |
2010 |
Maersk |
3Q24 |
4Q27 |
Note(2) |
3/4Q21 |
tbr GSL Susan |
4,363 |
17,309 |
2008 |
CMA CGM |
3Q22 |
4Q22 |
22,000 |
29/07/2021 |
tbr GSL Rossi |
3,421 |
16,309 |
2012 |
Gold Star |
1Q22 |
2Q22 |
20,000 |
29/07/2021 |
tbr GSL Alice |
3,421 |
16,209 |
2014 |
CMA CGM |
1Q23 |
2Q23 |
21,500 |
29/07/2021 |
tbr GSL Eleftheria |
3,405 |
16,209 |
2013 |
Maersk |
3Q25 |
4Q25 |
12,000(3) |
29/07/2021 |
tbr GSL Melina |
3,400 |
16,209 |
2013 |
Maersk |
2Q23 |
3Q23 |
24,500 |
29/07/2021 |
Matson Molokai |
2,824 |
12,032 |
2007 |
Matson |
2Q22 |
2Q22 |
20,250 |
15/07/2021 |
tbr GSL Lalo |
2,824 |
11,951 |
2006 |
ONE |
1Q23 |
2Q23 |
18,500 |
29/07/2021 |
tbr GSL Mercer |
2,824 |
11,970 |
2007 |
Hapag |
3Q21 |
4Q21 |
11,700 |
29/07/2021 |
tbr GSL Elizabeth |
2,742 |
11,507 |
2006 |
ONE |
4Q22 |
1Q23 |
18,500 |
28/07/2021 |
tbr GSL Chloe |
2,546 |
12,212 |
2012 |
ONE |
4Q21 |
4Q21 |
15,000 |
29/07/2021 |
tbr GSL Maren |
2,546 |
12,212 |
2014 |
Westwood |
4Q22 |
1Q23 |
19,250 |
29/07/2021 |
tbr GSL Amstel |
1,118 |
5,167 |
2008 |
CMA CGM |
3Q23 |
3Q23 |
11,900 |
29/07/2021 |
|
(1) On February 9, 2021 we announced that we
had contracted to purchase seven ships of approximately 6,000 TEU
each, which have now been delivered. Contract cover for each vessel
is for a firm period of at least three years from the date each
vessel is delivered, with charterers holding a one-year extension
option on each charter, followed by a second option with the period
determined by (and terminating prior to) each vessel’s 25th year
dry-docking & special survey. During the firm periods of cover
the seven charters are expected to generate aggregate annualized
Adjusted EBITDA of approximately $29.0 million. Five ships are
chartered to Maersk from delivery; the remaining two (GSL Maria
& GSL Violetta) will be chartered to Maersk upon completion of
short charters to Wan Hai and ONE,
respectively.(2) On June 16, 2021 we
announced that we had contracted to purchase four ultra-high reefer
ships of 5,470 TEU each. These ships are scheduled to deliver in
3/4Q21. Contract cover is for a firm period of three years, with a
period of an additional three years at charterers’ option. During
the firm periods of cover the four charters are expected to
generate aggregate annualized Adjusted EBITDA of approximately
$31.1 million.(3) GSL Eleftheria. Chartered
to Maersk at $12,000 per day through September 2021; thereafter
extended at $37,975 per day. |
Conference Call and Webcast
Global Ship Lease will hold a conference call to
discuss the Company's results for the three months ended June 30,
2021 today, Thursday August 5, 2021 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: 2096344
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 Saturday, August 21,
2021 at (855) 859-2056 or (404) 537-3406. Enter the code 2096344 to
access the audio replay. The webcast will also be archived on the
Company’s website: http://www.globalshiplease.co
Annual Report on Form 20-F
The Company’s Annual Report for 2020 was filed
with the Securities and Exchange Commission (the “Commission”) on
March 19, 2021. 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 or on the Commission’s
website at www.sec.gov. 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,
25 Wilton Road, London SW1V ILW.
About Global Ship Lease
Global Ship Lease is a leading independent owner
of containerships with a diversified fleet of mid-sized and smaller
containerships. Incorporated in the Marshall Islands, Global Ship
Lease commenced operations in December 2007 with a business of
owning and chartering out containerships under fixed-rate charters
to top tier container liner companies. It was listed on the New
York stock Exchange in August 2008.
As at August 5, 2021, Global Ship
Lease owns 61 containerships, ranging from 1,118 to 11,040
TEU, and has contracted to purchase a further four ships, for a
total fleet of 65 ships with an aggregate capacity of 342,378 TEU.
32 ships are wide-beam Post-Panamax.
Adjusted to include all charters agreed, and
ships contracted to be purchased, up to August 4, 2021, the
average remaining term of the Company’s charters as at June
30, 2021, to the mid-point of redelivery, including options under
the Company’s control and other than if a redelivery notice has
been received, was 2.5 years on a TEU-weighted basis. Contracted
revenue on the same basis was $1.37 billion. Contracted
revenue was $1.61 billion, including options under charterers’
control and with latest redelivery date, representing a weighted
average remaining term of 3.1 years.
Reconciliation of Non-U.S. GAAP
Financial Measures
A. Adjusted EBITDA
Adjusted EBITDA represents net income available
to common shareholders before interest income and expense, earnings
allocated to preferred shares, income taxes, depreciation and
amortization of drydocking net costs, gains or losses on the sale
of vessels, charges for share based compensation and impairment
losses. Adjusted EBITDA is a non-U.S. GAAP quantitative measure
used to assist in the assessment of our 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 U.S. GAAP and should not be considered to be an
alternative 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 is presented herein both on a historic basis and
on a forward-looking basis in certain instances. We have not
provided a reconciliation of such
forward looking non-U.S. GAAP financial measure
to the most directly comparable U.S. GAAP measure because such
U.S. GAAP financial measure on a forward-looking basis is not
available to us without unreasonable effort.
ADJUSTED EBITDA - UNAUDITED
(thousands of U.S.
dollars) |
|
|
|
Three |
Three |
Six |
Six |
|
|
months |
months |
Months |
Months |
|
|
ended |
ended |
Ended |
Ended |
|
|
June 30, |
June 30, |
June 30, |
June 30, |
|
|
2021 |
2020 |
2021 |
2020 |
|
|
|
|
|
|
Net income
available to Common Shareholders |
30,065 |
12,605 |
34,224 |
13,226 |
|
|
|
|
|
|
Adjust: |
Depreciation and
amortization |
13,136 |
11,578 |
25,519 |
23,126 |
|
Impairment of
vessels |
- |
912 |
- |
8,497 |
|
Gain on sale of
vessel |
(7,770) |
- |
(7,770) |
- |
|
Interest
income |
(121) |
(193) |
(364) |
(831) |
|
Interest
expense |
13,998 |
15,984 |
39,254 |
35,539 |
|
Share based
compensation |
150 |
855 |
1,854 |
1,284 |
|
Earnings allocated
to preferred shares |
2,011 |
911 |
3,495 |
1,790 |
|
Income tax |
- |
3 |
- |
3 |
|
|
|
|
|
|
Adjusted
EBITDA |
51,469 |
42,655 |
96,212 |
82,634 |
B. Normalized net income
Normalized net income represents net income
available to common shareholders adjusted for impairment charges,
the premium paid on redemption of our 2022 Notes together with the
associated accelerated amortization of deferred financing costs and
original issue discount, prepayment fees on repayment of credit
facilities, accelerated stock based compensation expense due to
vesting and new awards of fully vested incentive shares, and gains
or losses on sale of vessels. Normalized net income is a non-U.S.
GAAP quantitative measure which we believe will assist investors
and analysts who often adjust reported net income for items that do
not affect operating performance or operating cash generated.
Normalized net income is not defined in U.S. 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
(thousands of U.S.
dollars) |
|
|
|
Three |
Three |
Six |
Six |
|
|
months |
months |
months |
months |
|
|
ended |
ended |
Ended |
ended |
|
|
June 30, |
June 30, |
June 30, |
June 30, |
|
|
2021 |
2020 |
2021 |
2020 |
|
|
|
|
|
|
Net income
available to Common Shareholders |
30,065 |
12,605 |
34,224 |
13,226 |
|
|
|
|
|
|
Adjust: |
Gain on sale of
vessel |
(7,770) |
- |
(7,770) |
- |
|
Prepayment fee on
repayment of Odyssia Credit Facilities |
1,438 |
- |
1,438 |
- |
|
Prepayment fee on
partial repayment of Blue Ocean Credit Facility |
- |
- |
1,618 |
- |
|
Impairment of
vessels |
- |
912 |
- |
8,497 |
|
Accelerated stock
based compensation expense due to vesting and new awards of fully
vested incentive shares |
- |
426 |
1,346 |
426 |
|
Premium paid on
redemption of 2022 Notes |
- |
- |
5,764 |
2,271 |
|
Accelerated write
off of deferred financing charges related to redemption of 2022
Notes |
- |
- |
3,745 |
- |
|
Accelerated write
off of original issue discount related to redemption of 2022
Notes |
- |
- |
1,133 |
- |
|
|
|
|
|
|
Normalized net
income |
23,733 |
13,943 |
41,498 |
24,420 |
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," “should,” "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 future growth of the container
shipping industry, including the rates of annual demand and supply
growth;
- the length and severity of the ongoing outbreak of the novel
coronavirus (COVID-19) around the world and governmental responses
thereto;
- the financial condition of our charterers, particularly CMA
CGM, our principal charterer and main source of operating revenue,
and their ability to pay charterhire in accordance with the
charters;
- Global Ship Lease’s financial condition and liquidity,
including its level of indebtedness or ability to obtain additional
financing to fund capital expenditures, ship acquisitions and other
general corporate purposes;
- Global Ship Lease’s ability to meet its financial covenants and
repay its credit facilities;
- 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 credit
facilities;
- risks relating to the acquisition of Poseidon Containers and
Global Ship Lease’s ability to realize the anticipated benefits of
the acquisition;
- future acquisitions, business strategy and expected capital
spending;
- operating expenses, availability of crew, number of off-hire
days, drydocking and survey requirements and insurance costs;
- general market conditions and shipping industry trends,
including charter rates and factors affecting supply and
demand;
- assumptions regarding interest rates and inflation;
- changes in the rate of growth of global and various regional
economies;
- risks incidental to ship operation, including piracy, discharge
of pollutants and ship accidents and damage including total or
constructive total loss;
- estimated future capital expenditures needed to preserve its
capital base;
- Global Ship Lease’s expectations about the availability of
ships to purchase, the time that it may take to construct new
ships, or the useful lives of its ships;
- Global Ship Lease’s continued ability to enter into or renew
long-term, fixed-rate charters or other ship employment
arrangements;
- the continued performance of existing long-term, fixed-rate
time charters;
- Global Ship Lease’s ability to capitalize on its management’s
and board of 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 including
taxation;
- 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 U.S Securities and Exchange Commission (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 Condensed
Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars)
|
June 30, 2021 |
|
December 31, 2020 |
ASSETS |
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
Cash and cash
equivalents |
$ |
142,963 |
|
|
$ |
80,757 |
|
Restricted cash |
|
17,465 |
|
|
|
825 |
|
Accounts receivable, net |
|
2,872 |
|
|
|
2,532 |
|
Inventories |
|
6,455 |
|
|
|
6,316 |
|
Prepaid expenses and other current assets |
|
12,004 |
|
|
|
6,711 |
|
Due from related parties |
|
2,007 |
|
|
|
1,472 |
|
Total current assets |
$ |
183,766 |
|
|
$ |
98,613 |
|
NON - CURRENT ASSETS |
|
|
|
|
|
Vessels in operation |
$ |
1,212,642 |
|
|
$ |
1,140,583 |
|
Advances for vessels acquisitions and other additions |
|
27,645 |
|
|
|
1,364 |
|
Deferred charges, net |
|
23,605 |
|
|
|
22,951 |
|
Restricted cash, net of current portion |
|
5,076 |
|
|
|
10,680 |
|
Total non - current assets |
|
1,268,968 |
|
|
|
1,175,578 |
|
TOTAL ASSETS |
$ |
1,452,734 |
|
|
$ |
1,274,191 |
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
Accounts payable |
$ |
10,806 |
|
|
$ |
10,557 |
|
Accrued liabilities |
|
16,116 |
|
|
|
19,127 |
|
Current portion of long-term debt |
|
95,312 |
|
|
|
76,681 |
|
Deferred revenue |
|
6,243 |
|
|
|
5,623 |
|
Due to related parties |
|
312 |
|
|
|
225 |
|
Total current liabilities |
$ |
128,789 |
|
|
$ |
112,213 |
|
LONG-TERM LIABILITIES |
|
|
|
|
|
Long - term debt, net of current portion and deferred financing
costs |
$ |
726,008 |
|
|
$ |
692,775 |
|
Intangible liability-charter agreements |
|
4,571 |
|
|
|
4,462 |
|
Total non - current liabilities |
|
730,579 |
|
|
|
697,237 |
|
Total liabilities |
$ |
859,368 |
|
|
$ |
809,450 |
|
Commitments and Contingencies |
|
|
|
|
|
SHAREHOLDERS'
EQUITY |
|
|
|
|
|
Class A common shares - authorized214,000,000 shares with a
$0.01 par value36,283,468 shares issued and outstanding (2020 –
17,741,008 shares) |
|
362 |
|
|
|
177 |
|
Series B Preferred Shares - authorized44,000 shares with a
$0.01 par value36,772 shares issued and outstanding (2020 – 22,822
shares) |
|
- |
|
|
|
- |
|
Series C Preferred Shares - authorized250,000 shares with a
$0.01 par valueNil shares issued and outstanding (2020 - 250,000
shares) |
|
- |
|
|
|
3 |
|
Additional paid in capital |
|
689,921 |
|
|
|
586,355 |
|
Accumulated deficit |
|
(96,917 |
) |
|
|
(121,794 |
) |
Total shareholders' equity |
|
593,366 |
|
|
|
464,741 |
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ |
1,452,734 |
|
|
$ |
1,274,191 |
|
Global Ship Lease, Inc.
Interim Unaudited Condensed
Consolidated Statements of Operations
(Expressed in thousands of U.S. dollars except share data)
|
Three months ended June 30, |
|
Six months ended June 30, |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
OPERATING
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
Time charter revenue (includes related party revenues of $33,810
and $36,848 for each of the three month periods ended June 30, 2021
and 2020, respectively, and $66,005 and $74,524 for each of the six
month periods ended June 30, 2021 and 2020, respectively) |
$ |
82,871 |
|
|
$ |
71,376 |
|
|
$ |
155,851 |
|
|
$ |
142,323 |
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
Vessel operating expenses
(includes related party vessel operating expenses of $3,578 and
$3,068 for each of the three month periods ended June 30, 2021 and
2020, respectively, and $6,868 and $6,105 for each of the six month
periods ended June 30, 2021 and 2020, respectively) |
|
28,120 |
|
|
|
24,170 |
|
|
|
52,406 |
|
|
|
49,682 |
|
Time charter and voyage expenses
(includes related party brokerage commissions of $781 and $591 for
each of the three month periods ended June 30, 2021 and 2020,
respectively, and $1,470 and $1,201 for each of the six months
period ended June 30, 2021 and 2020, respectively) |
|
2,124 |
|
|
|
2,712 |
|
|
|
3,889 |
|
|
|
6,181 |
|
Depreciation and
amortization |
|
13,136 |
|
|
|
11,578 |
|
|
|
25,519 |
|
|
|
23,126 |
|
Impairment of vessels |
|
- |
|
|
|
912 |
|
|
|
- |
|
|
|
8,497 |
|
General and administrative
expenses |
|
1,857 |
|
|
|
2,322 |
|
|
|
6,131 |
|
|
|
4,759 |
|
Gain on sale of vessels |
|
(7,770 |
) |
|
|
- |
|
|
|
(7,770 |
) |
|
|
- |
|
Operating
Income |
|
45,404 |
|
|
|
29,682 |
|
|
|
75,676 |
|
|
|
50,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-OPERATING
INCOME/(EXPENSES) |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
121 |
|
|
|
193 |
|
|
|
364 |
|
|
|
831 |
|
Interest and other finance
expenses (include of $5,764 and $2,271 Notes premium for each of
the six months ended June 30, 2021 and 2020, respectively) |
|
(13,998 |
) |
|
|
(15,984 |
) |
|
|
(39,254 |
) |
|
|
(35,539 |
) |
Other income, net |
|
549 |
|
|
|
(372 |
) |
|
|
933 |
|
|
|
(351 |
) |
Total non-operating
expenses |
|
(13,328 |
) |
|
|
(16,163 |
) |
|
|
(37,957 |
) |
|
|
(35,059 |
) |
Income before income
taxes |
|
32,076 |
|
|
|
13,519 |
|
|
|
37,719 |
|
|
|
15,019 |
|
Income taxes |
|
- |
|
|
|
(3 |
) |
|
|
- |
|
|
|
(3 |
) |
Net
Income |
$ |
32,076 |
|
|
$ |
13,516 |
|
|
$ |
37,719 |
|
|
$ |
15,016 |
|
Earnings allocated to Series B
Preferred Shares |
|
(2,011 |
) |
|
|
(911 |
) |
|
|
(3,495 |
) |
|
|
(1,790 |
) |
Net Income available
to Common Shareholders |
$ |
30,065 |
|
|
$ |
12,605 |
|
|
$ |
34,224 |
|
|
$ |
13,226 |
|
Global Ship Lease, Inc.
Interim Unaudited Condensed Consolidated
Statements of Cash Flows
(Expressed in thousands of U.S. dollars)
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
32,076 |
|
|
$ |
13,516 |
|
|
$ |
37,719 |
|
|
$ |
15,016 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
$ |
13,136 |
|
|
$ |
11,578 |
|
|
$ |
25,519 |
|
|
$ |
23,126 |
|
Impairment of vessels |
|
- |
|
|
|
912 |
|
|
|
- |
|
|
|
8,497 |
|
Gain on sale of vessel |
|
(7,770 |
) |
|
|
- |
|
|
|
(7,770 |
) |
|
|
- |
|
Amortization of deferred
financing costs |
|
957 |
|
|
|
994 |
|
|
|
5,363 |
|
|
|
1,921 |
|
Amortization of original issue
discount/premium on repurchase of notes |
|
92 |
|
|
|
143 |
|
|
|
7,136 |
|
|
|
2,282 |
|
Amortization of intangible
liabilities/assets-charter agreements |
|
(1,959 |
) |
|
|
(124 |
) |
|
|
(2,461 |
) |
|
|
355 |
|
Share based compensation |
|
150 |
|
|
|
853 |
|
|
|
1,854 |
|
|
|
1,282 |
|
Changes in operating
assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Increase/(decrease) in
accounts receivable and other assets |
$ |
(1,768 |
) |
|
$ |
390 |
|
|
$ |
(5,633 |
) |
|
$ |
182 |
|
Increasse in inventories |
|
(476 |
) |
|
|
(80 |
) |
|
|
(139 |
) |
|
|
(476 |
) |
Increase/(decrease) in
accounts payable and other liabilities |
|
2,918 |
|
|
|
(11,749 |
) |
|
|
(3,148 |
) |
|
|
(5,154 |
) |
Increase/(decrease) in related
parties' balances, net |
|
788 |
|
|
|
(1,526 |
) |
|
|
(447 |
) |
|
|
(3,460 |
) |
Increase/(decrease) in
deferred revenue |
|
572 |
|
|
|
(1,659 |
) |
|
|
620 |
|
|
|
(4,968 |
) |
Unrealized foreign exchange
loss |
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
1 |
|
Net cash provided by
operating activities |
$ |
38,716 |
|
|
$ |
13,249 |
|
|
$ |
58,613 |
|
|
$ |
38,604 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
Acquisition of vessels and
intangibles |
$ |
(98,400 |
) |
|
$ |
- |
|
|
$ |
(98,400 |
) |
|
$ |
(23,060 |
) |
Cash paid for vessel
expenditures |
|
(328 |
) |
|
|
(277 |
) |
|
|
(2,233 |
) |
|
|
(1,385 |
) |
Advances for vessel
acquisitions and other additions |
|
(25,709 |
) |
|
|
(1,079 |
) |
|
|
(25,957 |
) |
|
|
(1,279 |
) |
Cash paid for drydockings |
|
(2,594 |
) |
|
|
(3,117 |
) |
|
|
(4,181 |
) |
|
|
(7,189 |
) |
Net proceeds from sale of
vessels |
|
16,514 |
|
|
|
4,119 |
|
|
|
16,514 |
|
|
|
4,119 |
|
Net cash used in
investing activities |
$ |
(110,517 |
) |
|
$ |
(354 |
) |
|
$ |
(114,257 |
) |
|
$ |
(28,794 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of 2024
Notes |
$ |
7,606 |
|
|
$ |
- |
|
|
$ |
22,702 |
|
|
$ |
19,193 |
|
Repurchase of 2022 Notes,
including premium |
|
- |
|
|
|
(625 |
) |
|
|
(239,183 |
) |
|
|
(57,822 |
) |
Proceeds from drawdown of
credit facilities |
|
225,605 |
|
|
|
- |
|
|
|
461,805 |
|
|
|
47,000 |
|
Repayment of credit
facilities |
|
(23,021 |
) |
|
|
(20,460 |
) |
|
|
(53,838 |
) |
|
|
(33,912 |
) |
Repayment of refinanced
debt |
|
(143,799 |
) |
|
|
- |
|
|
|
(143,799 |
) |
|
|
(44,366 |
) |
Deferred financing costs
paid |
|
(3,680 |
) |
|
|
(89 |
) |
|
|
(7,916 |
) |
|
|
(969 |
) |
Proceeds from offering of
Class A common shares, net of offering costs |
|
(372 |
) |
|
|
(37 |
) |
|
|
67,612 |
|
|
|
(76 |
) |
Proceeds from offering of
Series B preferred shares, net of offering costs |
|
23,649 |
|
|
|
1,179 |
|
|
|
34,345 |
|
|
|
4,982 |
|
Class A common shares-dividend
paid |
|
(9,347 |
) |
|
|
- |
|
|
|
(9,347 |
) |
|
|
- |
|
Series B Preferred
Shares-dividend paid |
|
(2,011 |
) |
|
|
(911 |
) |
|
|
(3,495 |
) |
|
|
(1,790 |
) |
Net cash provided by /
(used in) financing activities |
$ |
74,630 |
|
|
$ |
(20,943 |
) |
|
$ |
128,886 |
|
|
$ |
(67,760 |
) |
Increase/(decrease) in
cash and cash equivalents and restricted cash |
|
2,829 |
|
|
|
(8,048 |
) |
|
|
73,242 |
|
|
|
(57,950 |
) |
Cash and cash equivalents and
restricted cash at beginning of the period |
|
162,675 |
|
|
|
97,734 |
|
|
|
92,262 |
|
|
|
147,636 |
|
Cash and cash
equivalents and restricted cash at end of the period |
$ |
165,504 |
|
|
$ |
89,686 |
|
|
$ |
165,504 |
|
|
$ |
89,686 |
|
Supplementary Cash
Flow Information: |
|
|
|
|
|
|
|
|
|
|
|
Cash paid for interest |
$ |
10,078 |
|
|
$ |
21,909 |
|
|
$ |
24,547 |
|
|
$ |
33,098 |
|
Non-cash Investing
activities: |
|
|
|
|
|
|
|
|
|
|
|
Unpaid drydocking
expenses |
|
1,890 |
|
|
|
482 |
|
|
|
1,890 |
|
|
|
482 |
|
Unpaid vessel
expenditures |
|
3,474 |
|
|
|
2,823 |
|
|
|
3,474 |
|
|
|
2,823 |
|
Non-cash financing
activities: |
|
|
|
|
|
|
|
|
|
|
|
Unpaid offering costs |
|
63 |
|
|
|
- |
|
|
|
63 |
|
|
|
- |
|
Unpaid deferred financing
costs |
|
406 |
|
|
|
- |
|
|
|
406 |
|
|
|
- |
|
Investor and Media Contacts: The IGB GroupBryan
Degnan646-673-9701orLeon Berman 212-477-8438
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