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 months ended March 31, 2023.
First Quarter 2023
Highlights
- Reported operating revenue of $159.3 million
for the first quarter 2023, an increase of 3.7% on operating
revenue of $153.6 million for the prior year period.
- Reported net income available to common
shareholders of $72.2 million for the first quarter of 2023, an
increase of 6.5% on net income of $67.8 million for the prior year
period. Normalized net income (a non-U.S. GAAP financial measure,
described below) for the same period was $75.6 million, up 12.3% on
Normalized net income of $67.3 million for the prior year
period.
- Generated $104.9 million of Adjusted EBITDA (a
non-U.S. GAAP financial measure, described below) for the first
quarter of 2023, up 16.0% on Adjusted EBITDA of $90.4 million for
the prior year period.
- Earnings per share for the first quarter of
2023 was $2.02, up 8.6% on earnings per share of $1.86 for the
prior year period. Normalized earnings per share (a non-U.S. GAAP
financial measure, described below) for the first quarter of 2023
was $2.12, up 14.6% on Normalized earnings per share of $1.85 for
the prior year period.
- Declared a dividend of $0.375 per Class A
common share for the first quarter of 2023 to be paid on June 2,
2023 to common shareholders of record as of May 24, 2023. Paid a
dividend of $0.375 per Class A common share for the fourth quarter
of 2022 on March 6, 2023.
- On May 8, 2023, announced an agreement to
purchase four post-panamax containerships, each with carrying
capacity of approximately 8,500 TEU ships for $123.3 million, and
charter them back to a leading liner operator. Contract cover for
each vessel is for a minimum firm period of 24 months from the date
each vessel is delivered, anticipated to be late second quarter /
early third quarter 2023, followed by a 12-month extension at the
charterer’s option. The vessels are expected to generate aggregate
Adjusted EBITDA of approximately $76.6 million over the minimum
firm period, implying an average Purchase Price/Annual Adjusted
EBITDA multiple of approximately 3.2x. If all options are
exercised, the vessels are expected to generate approximately $95.3
million of aggregate Adjusted EBITDA.
- Between January 1, 2023, and May 9, 2023,
including the four 8,500 TEU ships we have contracted to purchase,
added $188.8 million of firm contracted revenues to forward charter
cover, calculated on the basis of the median firm periods of the
respective charters. For vessels in our pre-existing fleet, new
charter fixtures or extensions were agreed on seven ships between
2,200 and 3,500 TEU, and a forward fixture was agreed for one ECO
9,100 TEU ship; charter terms range from a few months to two
years.
- Continued to utilize the $40.0 million
authorization (the “Buy-back Authorization”) for opportunistic
share repurchases, repurchasing a total of 582,178 Class A common
shares during January 2023 for a total investment of $10.0 million.
During April 2023 we repurchased a further 203,140 Class A common
shares for a total investment of $3.8 million. Re-purchase prices
in 2023 ranged between $16.12 and $18.69 per common share, with an
average price of $17.50. A total of 1,845,958 Class A common shares
have been repurchased under the Buy-back Authorization, for
approximately $33.8 million, with approximately $6.2 million of
capacity remaining.
- In March 2023, completed on the
previously-announced sale of GSL Amstel, a 1,100 TEU feeder and
non-core asset with imminent special survey and dry-docking
requirements, for net proceeds of approximately $5.9 million.
George Youroukos, Executive Chairman of Global
Ship Lease stated: “The ongoing normalization of charter rates and
asset values in the container shipping sector continued into early
2023, although the rate of change has moderated in recent months.
It remains to be seen whether this trend can be sustained, but
there have recently been signs of potential stabilization at rate
levels that, despite being well below recent peaks, are still
attractive by historical standards. The availability of tonnage,
and overall liquidity, within the charter market remains
comparatively limited, incentivizing liner companies to continue
securing tonnage on term charters, albeit for durations that rarely
extend beyond a year or two.
In this environment, and with a highly specified
fleet focused on the “workhorse” size segments, we have continued
to have success in agreeing new charters and extensions. We have
recently also returned to value-focused growth with the purchase
and charter back of four 8,500 TEU post-panamax containerships,
GSL’s first vessel acquisitions in nearly two years. These
high-specification, enhanced-efficiency vessels will provide GSL
with immediate cash flow from a top-tier counterparty and are being
acquired on attractive terms, reflecting the recent normalization
of asset values, while ensuring low residual value risk. All told,
we have added almost $190.0 million of contracted revenue so far
this year, bringing our forward charter cover to more than $2.1
billion over 2.5 years. Our strong contracted cash flows and
discipline throughout the recent period of sharply elevated asset
prices have put GSL in a strong position to selectively participate
in secondhand acquisition opportunities that meet our strict
criteria.”
Ian Webber, Chief Executive Officer, commented:
“By remaining disciplined, aggressively deleveraging, and
continually identifying opportunities to reduce our cost of debt,
including by hedging our interest rate exposure, and enhance our
overall financial flexibility, GSL is entering this new phase of
the cycle with both good forward visibility on contracted cash
flows and a robust balance sheet. This allows us to continue to be
nimble with our capital allocation, moving quickly on the right
growth opportunities while maintaining our well-supported dividend
and capitalizing on stock market volatility to improve shareholder
returns by buying back shares. Since third quarter of 2021, in
total we have invested almost $44 million in share buy-backs,
reducing our share count by nearly 7%. Our financial strength and
discipline enable us to create value in multiple ways, and we
intend to continue doing so in the manner that we believe best
serves the long-term interests of our shareholders.”
SELECTED FINANCIAL DATA – UNAUDITED
(thousands of U.S. dollars)
| |
Three months ended |
Three months ended |
| |
March 31, 2023 |
March 31, 2022 |
| |
|
|
| Operating Revenue
(1) |
159,291 |
153,631 |
| Operating Income |
85,098 |
83,740 |
| Net Income
(2) |
72,220 |
67,806 |
| Adjusted EBITDA
(3) |
104,906 |
90,380 |
| Normalized Net Income
(3) |
75,564 |
67,293 |
| |
|
|
(1) Operating Revenue is net of address
commissions which represent a discount provided directly to a
charterer based on a fixed percentage of the agreed upon charter
rate and also includes the amortization of intangible liabilities
and the effect of the straight lining of time charter
modifications. Brokerage commissions are included in “Time charter
and voyage expenses” (see below).
(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
measures 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
Operating revenue derived from fixed-rate,
mainly long-term, time-charters was $159.3 million in the three
months ended Μarch 31, 2023, up $5.7 million (or 3.7%) on revenue
of $153.6 million for the prior year period. The period-on-period
increase in revenue was principally due to charter renewals at
higher rates on nine vessels partially offset by (i) $9.5 million
reduction in the amortization of intangible liabilities arising on
below-market charters attached to certain vessel additions, and
(ii) $1.9 million reduction in the credit from straightlining the
effect of timecharter modifications. There were 302 days of offhire
in the first quarter of 2023 of which 200 were for scheduled
drydockings, compared to 309 days of offhire in the prior year
period of which 227 were for scheduled drydockings. Utilization for
the first quarter of 2023 was 94.8% compared to utilization of
94.7% in the same period of the prior year.
The table below shows fleet utilization for the
three months ended March 31, 2023 and 2022, and for the years ended
December 31, 2022, 2021, 2020 and 2019.
| |
Three months ended |
|
Year ended |
|
|
March 31, |
March 31, |
|
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
|
Days |
2023 |
|
2022 |
|
|
2022 |
|
2021 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
| Ownership days |
5,843 |
|
5,850 |
|
|
23,725 |
|
19,427 |
|
16,044 |
|
14,326 |
|
| Planned offhire - scheduled
drydock |
(200 |
) |
(227 |
) |
|
(581 |
) |
(752 |
) |
(687 |
) |
(537 |
) |
| Unplanned offhire |
(102 |
) |
(82 |
) |
|
(460 |
) |
(260 |
) |
(95 |
) |
(105 |
) |
| Idle time |
nil |
nil |
|
(30 |
) |
(88 |
) |
(338 |
) |
(164 |
) |
| Operating days |
5,541 |
|
5,541 |
|
|
22,654 |
|
18,327 |
|
14,924 |
|
13,520 |
|
|
|
|
|
|
|
|
|
|
| Utilization |
94.8 |
% |
94.7 |
% |
|
95.5 |
% |
94.3 |
% |
93.0 |
% |
94.4 |
% |
In 2023, we anticipate five further regulatory
drydockings.
Vessel Operating Expenses
Vessel operating expenses, which are primarily
the costs of crew, lubricating oil, repairs, maintenance, insurance
and technical management fees, were up 8.6% to $42.8 million for
the first quarter of 2023, compared to $39.4 million in the
comparative period. The increase of $3.4 million was mainly due to
(i) high inflation impact on all categories, ii) increase in
repairs, spares and maintenance expenses for planned main engine
maintenance and overhaul of diesel generators as well as main
engine annual spares delivery, (iii) increased crew expenses as
salaries were higher primarily due to limited crew supply as a
consequence of current container market conditions, worldwide
inflation and higher crew travel expenses due to increased number
of crew changes and higher airfare prices and (iv) increased cost
of lubricant consumption due to higher average prices. The average
cost per ownership day in the quarter was $7,319, compared to
$6,743 for the prior year period, up $576 per day, or 8.5%.
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 $5.5 million for the first quarter of 2023,
compared to $4.4 million in the first quarter of 2022. The increase
is mainly due to additional voyage administration costs and
increased commissions on charter renewals at higher rates.
Depreciation and AmortizationDepreciation and
amortization for the first quarter of 2023 was $21.2 million,
compared to $19.9 million in the first quarter of 2022. The
increase was mainly due to the 11 drydockings completed after March
31, 2022.
General and Administrative Expenses
General and administrative expenses were $4.8
million in the first quarter of 2023, compared to $6.2 million in
the first quarter of 2022. The decrease was mainly due to lower
stock-based compensation expense in the first quarter of 2023 and a
one-off expense that occurred in first quarter of 2022 due to
social security charges related to vesting of shares under the
stock-based compensation plan. The average general and
administrative expense per ownership day for the first quarter of
2023 was $820, compared to $1,066 in the comparative period, a
decrease of $246 or 23.1%.
Adjusted EBITDA
Adjusted EBITDA (a non-GAAP financial measure)
was $104.9 million for the first quarter of 2023, up from $90.4
million for the first quarter of 2022, with the net increase being
mainly due to decrease in amortization of intangible
liabilities.
Interest Expense and Interest Income
Debt as at March 31, 2023 totaled $896.5
million, comprising $440.2 million of secured bank debt
collateralized by vessels, $323.8 million of 2027 Secured Notes
collateralized by vessels, and $132.5 million under sale and
leaseback financing transactions. As of March 31, 2023, five
vessels were unencumbered.
Debt as at March 31, 2022 totaled $1,078.5
million, comprising $791.8 million of secured debt collateralized
by vessels, $169.2 million under sale and leaseback financing
transactions and $117.5 million of unsecured indebtedness on the
2024 Notes. As of March 31, 2022, no vessels were unencumbered.
Interest and other finance expenses for the
first quarter of 2023 was $11.1 million, down from $18.7 million
for the first quarter of 2022. The decrease in interest and other
finance expenses was mainly due to lower average amount of debt
outstanding and a $4.0 million prepayment fee on repayment of one
facility in first quarter 2022. Including the effect of the
interest rate caps and refinancing and repayment of certain of our
debt using the net proceeds of our 2027 Secured Notes which closed
in June 2022, the blended cost of our debt has decreased from
approximately 4.72% for the first quarter 2022 to 4.53% for the
first quarter 2023, despite an increase in three-month LIBOR/SOFR
in first quarter of 2023 to 4.92% as compared to 0.53% in the prior
year period.
Interest income for the first quarter of 2023
was $1.8 million, up from $0.3 million for the first quarter of
2022.
Other income, Net
Other income, net was $1.6 million in the first
quarter of 2023, compared to an income of $0.4 million in the first
quarter of 2022.
Fair value adjustment on derivatives
In December 2021, we entered into
a USD 1 month LIBOR interest rate cap of 0.75% through
fourth quarter of 2026 on $484.1 million of floating rate
debt, which reduces over time and represented approximately half of
the outstanding floating rate debt. In February 2022, we entered
into two additional USD 1 month LIBOR interest rate caps of 0.75%
through the fourth quarter of 2026 on the remaining balance
of $507.9 million of floating rate debt. One of these
interest rate caps was not designated as a cash flow hedge and
therefore the negative fair value adjustment of $2.8 million for
the first quarter of 2023 was recorded through the statement of
income as compared to the positive fair value adjustment of $4.6
million in the first quarter of 2022. Interest rate caps will
automatically transit to 1 month Compounded SOFR by June 30,
2023.
Earnings Allocated to Preferred Shares
The Series B Preferred Shares carry a coupon of
8.75%, the cost of which for the first quarter of 2023 was $2.4
million, the same as in first quarter 2022. The cost was $2.4
million in both quarters of 2023 and 2022 since there were no
additional Series B Preferred Shares issued under our at-the-market
program.
Net Income Available to Common ShareholdersNet
income available to common shareholders for the three months ended
March 31, 2023 was $72.2 million. Net income available to common
shareholders for the three months ended March 31, 2022 was $67.8
million.
Earnings per share for the three months ended
March 31, 2023 was $2.02, an increase of 8.6% from the earnings per
share for the comparative period, which was $1.86.
Normalized net income (a non-GAAP financial
measure) for the three months ended March 31, 2023, was $75.6
million. Normalized net income for the three months ended March 31,
2022 was $67.3 million.
Normalized earnings per share (a non-GAAP
financial measure) for the three months ended March 31, 2023 was
$2.12, an increase of 14.6% from Normalized earnings per share for
the comparative period, which was $1.85.
Fleet
As at May 9, 2023, we had 64 containerships in
our fleet.
|
Vessel Name |
Capacity in TEUs |
Lightweight (tons) |
Year Built |
Charterer |
Earliest Charter Expiry Date |
Latest Charter Expiry Date (2) |
Daily Charter Rate $ |
|
|
|
|
|
|
|
|
|
|
CMA CGM Thalassa |
11,040 |
38,577 |
2008 |
CMA CGM |
4Q25 |
2Q26 |
47,200 |
| ZIM Norfolk (ex UASC Al Khor)
(1) |
9,115 |
31,764 |
2015 |
ZIM |
2Q27 |
4Q27 |
65,000 |
|
Anthea Y (1) |
9,115 |
31,890 |
2015 |
COSCO |
3Q25 |
4Q25 |
38,000 (3) |
|
ZIM Xiamen (ex Maira XL)(1) |
9,115 |
31,820 |
2015 |
ZIM |
3Q27 |
4Q27 |
65,000 |
|
MSC Tianjin |
8,603 |
34,325 |
2005 |
MSC |
2Q24 |
3Q24 |
19,000 |
|
MSC Qingdao (4) |
8,603 |
34,609 |
2004 |
MSC |
2Q24 |
2Q25 |
23,000 |
|
GSL Ningbo |
8,603 |
34,340 |
2004 |
MSC |
3Q27 |
4Q27 (5) |
22,500 (5) |
|
GSL Eleni |
7,847 |
29,261 |
2004 |
Maersk |
3Q24 |
1Q25 (6) |
16,500 (6) |
|
GSL Kalliopi |
7,847 |
29,105 |
2004 |
Maersk |
3Q23 |
4Q24 (6) |
18,900 (6) |
|
GSL Grania |
7,847 |
29,190 |
2004 |
Maersk |
3Q23 |
1Q25 (6) |
17,750 (6) |
|
Mary (1) |
6,927 |
23,424 |
2013 |
CMA CGM (7) |
4Q28 |
1Q31 (7) |
25,910 (7) |
|
Kristina (1) |
6,927 |
23,421 |
2013 |
CMA CGM (7) |
3Q29 |
3Q31 (7) |
25,910 (7) |
|
Katherine (1) |
6,927 |
23,403 |
2013 |
CMA CGM (7) |
1Q29 |
2Q31 (7) |
25,910 (7) |
|
Alexandra (1) |
6,927 |
23,348 |
2013 |
CMA CGM (7) |
2Q29 |
3Q31 (7) |
25,910 (7) |
|
Alexis (1) |
6,882 |
23,919 |
2015 |
CMA CGM (7) |
2Q29 |
3Q31 (7) |
25,910 (7) |
|
Olivia I (1) |
6,882 |
23,864 |
2015 |
CMA CGM (7) |
2Q29 |
2Q31 (7) |
25,910 (7) |
|
GSL Christen |
6,840 |
27,954 |
2002 |
Maersk |
3Q23 |
1Q24 |
35,000 |
|
GSL Nicoletta |
6,840 |
28,070 |
2002 |
Maersk |
3Q24 |
1Q25 |
35,750 |
|
CMA CGM Berlioz |
6,621 |
26,776 |
2001 |
CMA CGM |
4Q25 |
2Q26 |
37,750 |
|
Agios Dimitrios (4) |
6,572 |
24,931 |
2011 |
MSC |
4Q23 |
3Q24 |
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 |
|
GSL Dorothea |
5,992 |
24,243 |
2001 |
Maersk |
3Q24 |
3Q26 |
18,600 (8) |
|
GSL Arcadia |
6,008 |
24,858 |
2000 |
Maersk |
2Q24 |
1Q26 |
18,600 (8) |
|
GSL Violetta |
6,008 |
24,873 |
2000 |
Maersk |
4Q24 |
4Q25 |
18,600 (8) |
|
GSL Maria |
6,008 |
24,414 |
2001 |
Maersk |
4Q24 |
1Q27 |
18,600 (8) |
|
GSL MYNY |
6,008 |
24,873 |
2000 |
Maersk |
3Q24 |
1Q26 |
18,600 (8) |
|
GSL Melita |
6,008 |
24,848 |
2001 |
Maersk |
3Q24 |
3Q26 |
18,600 (8) |
|
GSL Tegea |
5,992 |
24,308 |
2001 |
Maersk |
3Q24 |
3Q26 |
18,600 (8) |
|
Tasman |
5,936 |
25,010 |
2000 |
Maersk |
4Q23 |
2Q24 |
20,000 |
|
ZIM Europe |
5,936 |
25,010 |
2000 |
ZIM |
1Q24 |
2Q24 |
24,250 |
|
Ian H |
5,936 |
25,128 |
2000 |
ZIM |
2Q24 |
4Q24 |
32,500 |
|
GSL Tripoli |
5,470 |
22,259 |
2009 |
Maersk |
4Q24 |
4Q27 |
36,500 (9) |
|
GSL Kithira |
5,470 |
22,108 |
2009 |
Maersk |
4Q24 |
1Q28 |
36,500 (9) |
|
GSL Tinos |
5,470 |
22,067 |
2010 |
Maersk |
4Q24 |
4Q27 |
36,500 (9) |
|
GSL Syros |
5,470 |
22,098 |
2010 |
Maersk |
4Q24 |
4Q27 |
36,500 (9) |
|
Dolphin II |
5,095 |
20,596 |
2007 |
OOCL |
1Q25 |
3Q25 |
53,500 |
|
Orca I |
5,095 |
20,633 |
2006 |
Maersk |
2Q24 |
4Q25 |
21,000 (10) |
|
CMA CGM Alcazar |
5,089 |
20,087 |
2007 |
CMA CGM |
3Q26 |
1Q27 |
35,500 |
|
GSL Château d’If |
5,089 |
19,994 |
2007 |
CMA CGM |
4Q26 |
1Q27 |
35,500 |
|
GSL Susan |
4,363 |
17,309 |
2008 |
CMA CGM |
3Q27 |
1Q28 |
Confidential (11) |
|
CMA CGM Jamaica |
4,298 |
17,272 |
2006 |
CMA CGM |
1Q28 |
2Q28 |
Confidential (11) |
|
CMA CGM Sambhar |
4,045 |
17,429 |
2006 |
CMA CGM |
1Q28 |
2Q28 |
Confidential (11) |
|
CMA CGM America |
4,045 |
17,428 |
2006 |
CMA CGM |
1Q28 |
2Q28 |
Confidential (11) |
|
GSL Rossi |
3,421 |
16,420 |
2012 |
ZIM |
1Q26 |
3Q26 |
38,875 (12) |
|
GSL Alice |
3,421 |
16,543 |
2014 |
CMA CGM |
2Q25 |
2Q25 |
20,500 (13) |
|
GSL Eleftheria |
3,404 |
16,642 |
2013 |
Maersk |
3Q25 |
4Q25 |
37,975 |
|
GSL Melina |
3,404 |
16,703 |
2013 |
Maersk |
2Q23 |
2Q23 |
24,500 |
|
GSL Valerie |
2,824 |
11,971 |
2005 |
ZIM |
1Q25 |
3Q25 |
35,600 (14) |
|
Matson Molokai |
2,824 |
11,949 |
2007 |
Matson |
2Q25 |
3Q25 |
36,500 |
|
GSL Lalo |
2,824 |
11,950 |
2006 |
MSC (15) |
1Q24 |
2Q24 |
17,500 (15) |
|
GSL Mercer |
2,824 |
11,970 |
2007 |
ONE |
4Q24 |
2Q25 |
35,750 |
|
Athena |
2,762 |
13,538 |
2003 |
Hapag-Lloyd |
2Q24 |
2Q24 |
21,500 |
|
GSL Elizabeth |
2,741 |
11,507 |
2006 |
ONE |
2Q23 |
3Q23 |
18,750 (16) |
|
Beethoven tbr GSL Chloe |
2,546 |
12,212 |
2012 |
ONE |
4Q24 |
1Q25 |
33,000 |
|
GSL Maren |
2,546 |
12,243 |
2014 |
Westwood (Swire) |
1Q24 |
2Q24 |
17,200 (17) |
|
Maira |
2,506 |
11,453 |
2000 |
Hapag-Lloyd |
3Q23 |
4Q23 |
17,750 (18) |
|
Nikolas |
2,506 |
11,370 |
2000 |
CMA CGM |
1Q24 |
1Q24 |
16,750 (19) |
|
Newyorker |
2,506 |
11,463 |
2001 |
CMA CGM |
1Q24 |
3Q24 |
20,700 |
|
Manet |
2,272 |
11,727 |
2001 |
OOCL |
4Q24 |
2Q25 |
32,000 |
|
Keta |
2,207 |
11,731 |
2003 |
CMA CGM |
1Q25 |
1Q25 |
25,000 |
|
Julie |
2,207 |
11,731 |
2002 |
Footnote (20) |
2Q25 |
3Q25 |
Footnote (20) |
|
Kumasi |
2,207 |
11,791 |
2002 |
Wan Hai |
1Q25 |
2Q25 |
38,000 |
|
Akiteta |
2,207 |
11,731 |
2002 |
OOCL |
4Q24 |
1Q25 |
32,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Modern design, high reefer capacity,
fuel-efficient vessel. (2) In many instances
charterers have the option to extend a charter beyond the nominal
latest expiry date by the amount of time that the vessel was off
hire during the course of that charter. This additional charter
time (“Offhire Extension”) is computed at the end of the initially
contracted charter period. The Latest Charter Expiry Dates shown in
this table have been adjusted to reflect offhire accrued up to the
date of issuance of this release plus estimated offhire scheduled
to occur during the remaining lifetimes of the respective charters.
However, as actual offhire can only be calculated at the end of
each charter, in some cases actual Offhire Extensions – if invoked
by charterers – may exceed the Latest Charter Expiry Dates
indicated. (3) Anthea Y was forward fixed to
a leading liner operator for a period of 24 months +/- 30 days,
with the new charter to commence upon expiry of the existing
charter in 3Q or 4Q23. The new charter is expected to generate
annualized Adjusted EBITDA of approximately $11.9
million.(4) MSC Qingdao & Agios
Dimitrios are fitted with Exhaust Gas Cleaning Systems
(“scrubbers”). (5) GSL Ningbo chartered to
MSC at $22,500 per day to July 2023. Thereafter, the charter has
been extended by 48 to 52 months, at a rate expected to generate
annualized Adjusted EBITDA of approximately $16.5
million.(6) GSL Eleni (delivered 2Q 2019) is
chartered for five years; GSL Kalliopi (delivered 4Q 2019) and GSL
Grania (delivered 3Q 2019) are chartered for three years plus two
successive periods of one year each, at the option of the
charterer. For GSL Kalliopi and GSL Grania the first option periods
were exercised in May 2022. During the option periods the charter
rates for GSL Kalliopi and GSL Grania are $18,900 per day and
$17,750 per day respectively. (7) Mary,
Kristina, Katherine, Alexandra, Alexis, Olivia I were forward fixed
to Hapag-Lloyd for five years, followed by two periods of 12 months
each at the option of the charterer. The new charters are scheduled
to commence as each of the existing charters expire, on a staggered
basis, between approximately late 2023 and late 2024, following the
expiration of existing charters. The charters are expected to
generate average annualized Adjusted EBITDA of approximately $13.1
million per ship.(8) GSL Maria, GSL
Violetta, GSL Arcadia, GSL MYNY, GSL Melita, GSL Tegea and GSL
Dorothea. Contract cover for each ship is for a firm period of at
least three years from the date each vessel was delivered, with
charterers holding a one-year extension option on each charter (at
a rate of $12,900 per day), followed by a second option (at a rate
of $12,700 per day) with the period determined by – and terminating
prior to – each vessel’s 25th year drydocking & special survey.
(9) GSL Tripoli, GSL Kithira, GSL Tinos, and
GSL Syros. Ultra-high reefer ships of 5,470 TEU each. Contract
cover on each ship is for a firm period of three years, from their
delivery dates in 2021, at a rate of $36,500 per day, with a period
of an additional three years (at $17,250 per day) at charterers’
option.(10) Orca I. Chartered at $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.
(11) GSL Susan, CMA CGM Jamaica, CMA CGM
Sambhar and CMA CGM America. In July 2022, these four vessels were
each forward fixed for five years +/- 45 days at charter rates
expected to generate average annualized Adjusted EBITDA of
approximately $11.2 million per vessel. The new charter for GSL
Susan commenced in 4Q 2022, while the charters for the remaining
three vessels commenced in late 1Q 2023.
(12) GSL Rossi. Chartered at an average rate
of $38,875 per day-$42,750 for the first 18 months, $38,000 for the
next 18 months and $35,000 for the remaining
period.(13) GSL Alice. Chartered at $20,500
per day for a period of 24 months +/- 30 days at the option of
charterer. The new charter commenced in May 2023.
(14) GSL Valerie. Chartered at an average
rate of $35,600 per day-$40,000 for the first 12 months, $36,000
for the next 12 months and $32,000 for the remaining
period.(15) GSL Lalo. Chartered to MSC at
$17,500 per day for a period of 14 to 16 months, upon expiry of the
preceding charter in 1Q 2023.(16) GSL
Elizabeth. Charter extended to ONE at $18,750 per day for a period
of four to seven months, commenced in late 4Q
2022.(17) GSL Maren. Charter extended to
Westwood (Swire) for a period of 11 to 14 months, commenced at the
end of 1Q 2023 at a rate of $17,200 per day for the first 2 months
and for the remaining period at a rate of
$18,200.(18) Maira. Charter extended for
four to 6.5 months, commencing at the end of 2Q 2023 at a rate of
$17,750 per day.(19) Nikolas. Charter
extended for ten to 12 months, commenced at the end of 1Q 2023 at a
rate of $16,750 per day.(20) Julie was
forward fixed to a leading liner company for a period of 24 months
+/- 30 days at the option of the charterer. The new charter is
scheduled to commence in 3Q 2023, after the vessel’s scheduled
drydock. The new charter is expected to generate annualized
Adjusted EBITDA of approximately $2.0 million. |
On May 8, 2023, we announced that we had
contracted to purchase four ships for an aggregate purchase price
of $123.3 million. Contract cover for each vessel is for a minimum
firm period 24 months from the date each vessel is delivered, with
charterers holding one year extension options. The vessels are
expected to generate aggregate Adjusted EBITDA of approximately
$76.6 million over the minimum firm period. The vessels and their
expected delivery dates are shown in the table below.
|
Vessel Name |
Capacity in TEUs |
Lightweight (tons) |
Year Built |
Expected Delivery date |
| |
|
|
|
|
|
tbr GSL Alexandra |
8,544 |
37,777 |
2004 |
Late 2Q23/early 3Q23 |
|
tbr GSL Sofia |
8,544 |
37,777 |
2003 |
Late 2Q23/early 3Q23 |
|
tbr GSL Effie |
8,544 |
37,777 |
2003 |
Late2Q23/early 3Q23 |
|
tbr GSL Lydia |
8,544 |
37,777 |
2003 |
Late 2Q23/early 3Q23 |
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,
2023 today, Wednesday May 10, 2023 at 10:30 a.m. Eastern Time.
There are two ways to access the conference call:
(1) Dial-in: (800) 715-9871 or (646) 307-1963;
Passcode: 6275035
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
The webcast will also be archived on the
Company’s website: http://www.globalshiplease.com.
Annual Report on Form 20-F
The Company’s Annual Report for 2022 was filed
with the Securities and Exchange Commission (the “Commission”) on
March 23, 2023. 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 May 9, 2023, Global Ship Lease owned
64 containerships and had contracted to purchase a further four
ships, ranging from 2,207 to 11,040 TEU, with an aggregate capacity
(when fully delivered) of 375,406 TEU. 36 ships are wide-beam
Post-Panamax.
Adjusted to include all charters agreed up
to May 9, 2023, and the four ships to be acquired, the average
remaining term of the Company’s charters as at March 31, 2023,
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 $2.11 billion. Contracted revenue
was $2.54 billion, including options under charterers’ control
and with latest redelivery date, representing a weighted average
remaining term of 3.3 years.
Reconciliation of Non-U.S. GAAP Financial
Measures
To supplement our financial information
presented in accordance with U.S. GAAP, we use certain “non-GAAP
financial measures” as such term is defined in Regulation G
promulgated by the SEC. Generally, a non-GAAP financial measure is
a numerical measure of a company’s operating performance, financial
position or cash flows that excludes or includes amounts that are
included in, or excluded from, the most directly comparable measure
calculated and presented in accordance with U.S. GAAP. We believe
that the presentation of these measures provides investors with
greater transparency and supplemental data relating to our
financial condition and results of operations, and therefore a more
complete understanding of factors affecting our business than U.S.
GAAP measures alone. In addition, we believe that the presentation
of these matters is useful to investors for period-to-period
comparison of results as the items may reflect certain unique
and/or non-operating items such as impairment charges, contract
termination costs or items outside of our control.
We believe that the presentation of the
following non-U.S. GAAP financial measures is useful to investors
because they are frequently used by securities analysts, investors
and other interested parties in the evaluation of companies in our
industry.
A. Adjusted EBITDAAdjusted
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, amortization of
intangible liabilities, charges for stock-based compensation, fair
value adjustment on derivatives, the effect of the straight lining
of time charter modifications, 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 our 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 do not provide 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 months ended |
Three months ended |
| |
|
March 31, 2023 |
March 31, 2022 |
| |
|
|
|
| Net income
available to Common Shareholders |
72,220 |
|
67,806 |
|
| |
|
|
|
| Adjust: |
Depreciation and
amortization |
21,184 |
|
19,852 |
|
| |
Amortization of
intangible liabilities |
(3,364 |
) |
(12,855 |
) |
| |
Fair value
adjustment on derivative asset |
2,785 |
|
(4,564 |
) |
| |
Interest
income |
(1,812 |
) |
(250 |
) |
| |
Interest
expense |
11,103 |
|
18,735 |
|
| |
Stock-based
compensation |
2,674 |
|
3,430 |
|
| |
Earnings allocated
to preferred shares |
2,384 |
|
2,384 |
|
| |
Effect from
straight lining time charter modifications |
(2,268 |
) |
(4,158 |
) |
| Adjusted
EBITDA |
104,906 |
|
90,380 |
|
B. Normalized net income
Normalized net income represents net income
available to common shareholders after adjusting for certain
non-recurring items. 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 - UNAUDITED
| (thousands of U.S.
dollars) |
|
|
| |
|
Three months ended |
Three months ended |
| |
|
March 31, 2023 |
March 31, 2022 |
| |
|
|
|
| Net income
available to Common Shareholders |
72,220 |
67,806 |
|
| |
|
|
|
| Adjust: |
Fair value
adjustment on derivative asset |
2,785 |
(4,564 |
) |
| |
Accelerated write
off of deferred financing charges related to partial repayment of
HCOB-CACIB Credit Facility |
108 |
- |
|
| |
Prepayment fee on
repayment of Blue Ocean Credit Facility |
- |
3,968 |
|
| |
Accelerated write
off of deferred financing charges related to full repayment of Blue
Ocean Credit Facility |
- |
83 |
|
| |
Forfeit of certain
stock-based compensation awards |
451 |
- |
|
| Normalized net
income |
75,564 |
67,293 |
|
C. Normalized Earnings per
ShareNormalized Earnings per Share represents Earnings per Share
after adjusting for certain non-recurring items. Normalized
Earnings per Share is a non-U.S. GAAP quantitative measure which we
believe will assist investors and analysts who often adjust
reported Earnings per Share for items that do not affect operating
performance or operating cash generated. Normalized Earnings per
Share is not defined in U.S. GAAP and should not be considered to
be an alternate to Earnings per Share as reported or any other
financial metric required by such accounting principles. Our use of
Normalized Earnings per Share may vary from the use of similarly
titled measures by others in our industry.
NORMALIZED EARNINGS PER SHARE - UNAUDITED
| |
|
Three months ended |
Three months ended |
| |
|
March 31, 2023 |
March 31, 2022 |
| |
|
|
|
| EPS as reported
(USD) |
2.02 |
1.86 |
|
| Normalized net
income adjustments-Class A common shares (in thousands USD) |
3,344 |
(513 |
) |
| Weighted average
number of Class A Common shares |
35,696,225 |
36,401,764 |
|
| Adjustment on EPS
(USD) |
0.10 |
(0.01 |
) |
| Normalized EPS
(USD) |
2.12 |
1.85 |
|
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 strength of future growth of the
container shipping industry, including the rates of annual demand
and supply growth;
- geo-political events such as the conflict in Ukraine;
- 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 and their ability to
pay charterhire in accordance with the charters;
- the overall health and condition of the U.S. and global
financial markets;
- our financial condition and liquidity, including our ability to
obtain additional financing to fund capital expenditures, vessel
acquisitions and for other general corporate purposes and our
ability to meet our financial covenants and repay our
borrowings;
- our expectations relating to dividend payments and expectations
of our ability to make such payments including the availability of
cash and the impact of constraints under our credit
facilities;
- 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;
- 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 our
capital base;
- our expectations about the availability of vessels to purchase,
the time that it may take to construct new vessels, or the useful
lives of our vessels;
- our 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 our vessels in the spot
market;
- our ability to realize expected benefits from our acquisition
of secondhand vessels;
- our ability to capitalize on our 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;
- changes in laws and regulations (including environmental rules
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 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 except
share data)
| |
March 31, 2023 |
|
December 31, 2022 |
| ASSETS |
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
|
|
| Cash and cash equivalents |
$ |
125,157 |
|
$ |
120,130 |
| Time deposits |
|
9,600 |
|
|
8,550 |
| Restricted cash |
|
23,784 |
|
|
28,363 |
| Accounts receivable, net |
|
3,566 |
|
|
3,684 |
| Inventories |
|
11,544 |
|
|
12,237 |
| Prepaid expenses and other
current assets |
|
39,326 |
|
|
33,765 |
| Derivative asset |
|
27,420 |
|
|
29,645 |
| Due from related parties |
|
1,050 |
|
|
673 |
| Total current
assets |
$ |
241,447 |
|
$ |
237,047 |
| NON - CURRENT
ASSETS |
|
|
|
|
|
| Vessels in operation |
$ |
1,602,141 |
|
$ |
1,623,307 |
| Advances for vessels'
acquisitions and other additions |
|
7,126 |
|
|
4,881 |
| Deferred charges, net |
|
59,328 |
|
|
54,663 |
| Other non - current
assets |
|
31,934 |
|
|
31,022 |
| Derivative asset, net of
current portion |
|
25,264 |
|
|
33,858 |
| Restricted cash, net of
current portion |
|
129,418 |
|
|
121,437 |
| Total non - current
assets |
|
1,855,211 |
|
|
1,869,168 |
| TOTAL
ASSETS |
$ |
2,096,658 |
|
$ |
2,106,215 |
| LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
|
|
| Accounts payable |
$ |
22,248 |
|
$ |
22,755 |
| Accrued liabilities |
|
29,490 |
|
|
36,038 |
| Current portion of long-term
debt |
|
185,374 |
|
|
189,832 |
| Current portion of deferred
revenue |
|
13,126 |
|
|
12,569 |
| Due to related parties |
|
804 |
|
|
572 |
| Total current
liabilities |
$ |
251,042 |
|
$ |
261,766 |
| LONG-TERM
LIABILITIES |
|
|
|
|
|
| Long - term debt, net of
current portion and deferred financing costs |
$ |
697,434 |
|
$ |
744,557 |
| Intangible liabilities-charter
agreements |
|
10,378 |
|
|
14,218 |
| Deferred revenue, net of
current portion |
|
126,838 |
|
|
119,183 |
| Total non - current
liabilities |
|
834,650 |
|
|
877,958 |
| Total
liabilities |
$ |
1,085,692 |
|
$ |
1,139,724 |
| Commitments and
Contingencies |
|
- |
|
|
- |
| SHAREHOLDERS'
EQUITY |
|
|
|
|
|
| Class A common shares -
authorized214,000,000 shares with a $0.01 par value35,491,054
shares issued and outstanding (2022 – 35,990,288 shares) |
$ |
354 |
|
$ |
359 |
| Series B Preferred Shares -
authorized104,000 shares with a $0.01 par value43,592 shares issued
and outstanding (2022 – 43,592 shares) |
|
- |
|
|
- |
| Additional paid in
capital |
|
681,055 |
|
|
688,262 |
| Retained earnings |
|
305,259 |
|
|
246,390 |
| Accumulated other
comprehensive income |
|
24,298 |
|
|
31,480 |
| Total shareholders'
equity |
|
1,010,966 |
|
|
966,491 |
| TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
$ |
2,096,658 |
|
$ |
2,106,215 |
Global Ship Lease, Inc.
Interim Unaudited Condensed
Consolidated Statements of Income
(Expressed in thousands of U.S. dollars)
| |
Three months ended March 31, |
|
|
2023 |
|
|
2022 |
|
| OPERATING
REVENUES |
|
|
|
|
|
| Time charter revenue (includes
related party revenues of $nil and $39,663 for each of the
three-month periods ended March 31, 2023 and 2022,
respectively) |
$ |
155,927 |
|
|
$ |
140,776 |
|
| Amortization of intangible
liabilities-charter agreements (include related party amortization
of intangible liabilities-charter agreements of $nil and $3,291 for
the three-month periods ended March 31, 2023 and 2022,
respectively) |
|
3,364 |
|
|
|
12,855 |
|
| Total Operating
Revenues |
|
159,291 |
|
|
|
153,631 |
|
| |
|
|
|
|
|
| OPERATING
EXPENSES: |
|
|
|
|
|
| Vessel operating expenses
(include related party vessel operating expenses of $4,345 and
$4,379 for each of the three-month periods ended March 31, 2023 and
2022, respectively) |
|
42,762 |
|
|
|
39,444 |
|
| Time charter and voyage expenses
(include related party time charter and voyage expenses of $1,720
and $1,477 for the three-month periods ended March 31, 2023 and
2022, respectively) |
|
5,458 |
|
|
|
4,357 |
|
| Depreciation and
amortization |
|
21,184 |
|
|
|
19,852 |
|
| General and administrative
expenses |
|
4,789 |
|
|
|
6,238 |
|
| Operating
Income |
|
85,098 |
|
|
|
83,740 |
|
|
|
|
|
|
|
|
| NON-OPERATING
INCOME/(EXPENSES) |
|
|
|
|
|
| Interest income |
|
1,812 |
|
|
|
250 |
|
| Interest and other finance
expenses |
|
(11,103 |
) |
|
|
(18,735 |
) |
| Other income, net |
|
1,582 |
|
|
|
371 |
|
| Fair value adjustment on
derivative asset |
|
(2,785 |
) |
|
|
4,564 |
|
| Total non-operating
expenses |
|
(10,494 |
) |
|
|
(13,550 |
) |
| Income before income
taxes |
|
74,604 |
|
|
|
70,190 |
|
| Income taxes |
|
- |
|
|
|
- |
|
| Net
Income |
|
74,604 |
|
|
|
70,190 |
|
| Earnings allocated to Series B
Preferred Shares |
|
(2,384 |
) |
|
|
(2,384 |
) |
| Net Income available
to Common Shareholders |
$ |
72,220 |
|
|
$ |
67,806 |
|
Global Ship Lease, Inc.
Interim Unaudited Condensed Consolidated
Statements of Cash Flows
(Expressed in thousands of U.S. dollars)
| |
|
Three months ended March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
| Cash flows from
operating activities: |
|
|
|
|
|
| Net income |
$ |
74,604 |
|
|
$ |
70,190 |
|
| Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
| Depreciation and
amortization |
$ |
21,184 |
|
|
$ |
19,852 |
|
| Amounts reclassified from
other comprehensive income |
|
(39 |
) |
|
|
- |
|
| Amortization of derivative
asset’s premium |
|
891 |
|
|
|
1 |
|
| Amortization of deferred
financing costs |
|
1,475 |
|
|
|
1,579 |
|
| Amortization of original issue
premium on repurchase of notes |
|
- |
|
|
|
(120 |
) |
| Amortization of intangible
liabilities-charter agreements |
|
(3,364 |
) |
|
|
(12,855 |
) |
| Fair value adjustment on
derivative asset |
|
2,785 |
|
|
|
(4,564 |
) |
| Prepayment fees on debt
repayment |
|
- |
|
|
|
3,968 |
|
| Stock-based compensation
expense |
|
2,674 |
|
|
|
3,430 |
|
| Changes in operating
assets and liabilities: |
|
|
|
|
|
| Increase in accounts
receivable and other assets |
$ |
(6,355 |
) |
|
$ |
(1,835 |
) |
| Decrease in inventories |
|
693 |
|
|
|
425 |
|
| Increase in derivative
asset |
|
- |
|
|
|
(15,370 |
) |
| Decrease in accounts payable
and other liabilities |
|
(9,578 |
) |
|
|
(5,854 |
) |
| Increase in related parties'
balances, net |
|
(145 |
) |
|
|
(1,128 |
) |
| Increase/(decrease) in
deferred revenue |
|
8,212 |
|
|
|
(1,502 |
) |
| Unrealized foreign exchange
loss |
|
- |
|
|
|
3 |
|
| Net cash provided by
operating activities |
$ |
93,037 |
|
|
$ |
56,220 |
|
| Cash flows from
investing activities: |
|
|
|
|
|
| Cash paid for vessel
expenditures |
|
(1,182 |
) |
|
|
(1,987 |
) |
| Advances for vessel
acquisitions and other additions |
|
(3,232 |
) |
|
|
(1,122 |
) |
| Cash paid for drydockings |
|
(6,305 |
) |
|
|
(9,315 |
) |
| Net proceeds from sale of
vessel |
|
5,940 |
|
|
|
- |
|
| Time deposits acquired |
|
(1,050 |
) |
|
|
- |
|
| Net cash used in
investing activities |
$ |
(5,829 |
) |
|
$ |
(12,424 |
) |
| Cash flows from
financing activities: |
|
|
|
|
|
| Proceeds from drawdown of
credit facilities and sale and leaseback |
|
- |
|
|
|
60,000 |
|
| Repayment of credit facilities
and sale and leaseback |
|
(53,056 |
) |
|
|
(40,911 |
) |
| Repayment of refinanced debt,
including prepayment fees |
|
- |
|
|
|
(30,173 |
) |
| Deferred financing costs
paid |
|
- |
|
|
|
(2,246 |
) |
| Cancellation of Class A common
shares |
|
(9,988 |
) |
|
|
- |
|
| Class A common shares-dividend
paid |
|
(13,351 |
) |
|
|
(9,257 |
) |
| Series B preferred
shares-dividend paid |
|
(2,384 |
) |
|
|
(2,384 |
) |
| Net cash used in
financing activities |
$ |
(78,779 |
) |
|
$ |
(24,971 |
) |
| Net increase in cash
and cash equivalents and restricted cash |
|
8,429 |
|
|
|
18,825 |
|
| Cash and cash equivalents and
restricted cash at beginning of the period |
|
269,930 |
|
|
|
195,642 |
|
| Cash and cash
equivalents and restricted cash at end of the period |
$ |
278,359 |
|
|
$ |
214,467 |
|
| Supplementary Cash
Flow Information: |
|
|
|
|
|
| Cash paid for interest |
$ |
16,454 |
|
|
$ |
12,589 |
|
| Cash received from interest
rate caps |
|
7,077 |
|
|
|
- |
|
| Non-cash investing
activities: |
|
|
|
|
|
| Unpaid capitalized
expenses |
|
9,543 |
|
|
|
8,201 |
|
| Unpaid drydocking
expenses |
|
13,869 |
|
|
|
5,903 |
|
| Unpaid advances for vessels'
acquisitions and other additions |
|
- |
|
|
|
890 |
|
| Non-cash financing
activities: |
|
|
|
|
|
| Unrealized (loss)/gain on
derivative assets |
|
(8,034 |
) |
|
|
17,282 |
|
Investor and Media Contacts: The IGB GroupBryan
Degnan646-673-9701orLeon Berman 212-477-8438
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