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 nine months ended September 30,
2023.
Third Quarter 2023 and Year to Date
Highlights
- Reported operating revenue of $174.5 million
for the third quarter 2023, up 1.2% from $172.5 million for the
prior year period. For the nine months ended September 30, 2023,
operating revenue was $495.9 million, up 3.2% from $480.6 million
in the prior year period.
- Reported net income available to common
shareholders of $82.7 million for the third quarter 2023, a
decrease of 7.7% on net income of $89.6 million for the prior year
period. Normalized net income (a non-U.S. GAAP financial measure,
described below) for the same period was $82.4 million, down 5.8%
on Normalized net income of $87.5 million for the prior year
period. For the nine months ended September 30, 2023, net income
available to common shareholders was $230.3 million, an increase of
9.3% on net income of $210.8 million for the prior year period.
Normalized net income for the nine months ended September 30, 2023
was $231.9 million, up 4.9% on Normalized net income for the prior
year period of $221.0 million.
- Generated $121.9 million of Adjusted EBITDA (a
non-U.S. GAAP financial measure, described below) for the third
quarter 2023, up 9.4% on Adjusted EBITDA of $111.4 million for the
prior year period. Adjusted EBITDA for the nine months ended
September 30, 2023 was $334.9 million, up 12.2% on Adjusted EBITDA
of $298.4 million for the prior year period.
- Earnings per share for the third quarter 2023
was $2.34, down 4.1% on the earnings per share of $2.44 for the
prior year period. Normalized earnings per share (a non-U.S. GAAP
financial measure, described below) for the third quarter 2023 was
$2.33, down 2.1% on the Normalized earnings per share of $2.38 for
the prior year period. Earnings per share for the nine months ended
September 30, 2023 was $6.49, up 12.9% on the earnings per share of
$5.75 for the prior year period. Normalized earnings per share for
the nine months ended September 30, 2023 was $6.54, up 8.5% on the
Normalized earnings per share of $6.03 for the prior year
period.
- Declared a dividend of $0.375 per Class A
common share for the third quarter 2023 to be paid on December 4,
2023 to common shareholders of record as of November 24, 2023. Paid
a dividend of $0.375 per Class A common share for the second
quarter 2023 on September 5, 2023.
- Between January 1, 2023 and September 30,
2023, added $224.7 million of contracted revenues to forward
charter cover, calculated on the basis of the median firm periods
of the respective charters. 18 new charter fixtures (including
short re-charters of the same vessel) or extensions were agreed on
eight ships between 2,200 and 3,500 TEU, charter extensions were
exercised for two 7,800 TEU ships, a forward fixture was agreed for
one ECO 9,100 TEU ship, and four 8,544 TEU vessels were purchased
with charters attached; with the exception of one very short
re-positioning charter, firm charter terms range from a few months
to two years. Contracted revenue as of September 30, 2023,
calculated on the same basis, was $1.81 billion.
- Expanded our relationship with Ascenz Marorka
to accelerate the implementation of their Smart Shipping solutions
across our containership fleet, in collaboration with our liner
customers, to provide real-time data and AI-supported live
performance management capabilities, facilitating operational
optimization, pro-active maintenance, and increasingly automated
fuel consumption and emissions monitoring, giving rise to expected
fleet-wide cost savings.
- Continued to opportunistically repurchase
Class A common shares under the $40.0 million buy-back
authorization approved by our Board of Directors, which was
established in March 2022 and replenished in July 2023 (the
“Buy-back Authorization”. During the nine months ended September
30, 2023, we repurchased an aggregate of 1,154,721 Class A common
shares, at repurchase prices ranging from between $16.12 and $18.69
per share, with an average price of $17.68. During the three months
ended September 30, 2023, we repurchased an aggregate of 187,479
Class A common shares, at repurchase prices ranging from between
$17.98 and $18.49, with an average price of $18.31. Since its
inception, a total of 2,303,303 Class A common shares have been
repurchased under the Buy-back Authorization, for approximately
$42.0 million, with approximately $38.0 million of authorized
capacity remaining.
George Youroukos, Executive Chairman of Global
Ship Lease, stated: “With over two years of forward contract cover,
and only a small number of ships coming open through end 2024, we
remained focused throughout the third quarter on optimizing our
operating performance and maintaining our disciplined approach to
capital allocation. Macro headwinds, geopolitical uncertainty, and
the size of the orderbook remain areas of concern for the overall
industry, but the GSL fleet continues to operate efficiently,
servicing fixed-rate term charters contracted to liner operators
that have built considerable financial resilience during the
all-time market highs of recent years. The combination of our
strong balance sheet and the continued normalization of asset
prices is making the prospect of selective, and increasingly
countercyclical, vessel acquisitions more interesting, with any
eventual purchase activity guided by our established strict
investment criteria focused on creating shareholder value.
“Moving forward, our fleet of well-specified,
mid-sized and smaller containerships is well supported by the
combination of a relatively modest orderbook for ships of a similar
size, the advanced age profile of the peer group against which our
ships compete, and the practical needs of the non-mainlane trades
for which our ship types remain the workhorses. By maintaining our
high level of operational performance, together with our
disciplined and dynamic approach to capital allocation, GSL is well
positioned to maintain our track record of success while
simultaneously providing our shareholders with an attractive
dividend, opportunistically buying back shares, and remaining
vigilant for accretive opportunities.”
Ian Webber, Chief Executive Officer, stated: “On
a firm foundation of attractive, fixed-rate time charters, we
continue to successfully execute our long-term strategy of
de-levering and de-risking GSL. Our prudent financial leverage of
below 2x, and highly competitive cost of debt at 4.55%, which
benefits from fully hedged interest rate risk through 2026, speak
to the extent of our continuing progress in that regard. Moreover,
our acquisition strategy over the last several years has
consistently focused on containerships that would re-enter the
charter market on the expiration of their initial GSL charters with
little or no remaining leverage, limiting downside exposure and
weighting their return profile to the upside. We have also
continued to make value-enhancing investments to maintain the
commercial attractiveness of our existing fleet, most recently with
the accelerated implementation of Ascenz Marorka’s real-time,
AI-supported Smart Shipping solution to help optimize vessel
performance, monitor fuel consumption and emissions, and facilitate
additional cost savings through pro-active maintenance. Our
industry has always been cyclical, and we believe that we have
taken good advantage of the 2021 - 2022 super upcycle to ensure
that we are well positioned to act prudently and countercyclically
moving forward for the long-term benefit of our shareholders.”
SELECTED FINANCIAL DATA – UNAUDITED
(thousands of U.S. dollars)
|
|
Three |
Three |
Nine |
Nine |
| |
months ended |
months ended |
months ended |
months ended |
| |
September 30, 2023 |
September 30, 2022 |
September 30, 2023 |
September 30, 2022 |
| |
|
|
|
|
| Operating Revenue
(1) |
174,530 |
172,536 |
495,901 |
480,623 |
| Operating Income |
94,157 |
101,725 |
264,364 |
269,051 |
| Net Income
(2) |
82,687 |
89,611 |
230,299 |
210,768 |
| Adjusted EBITDA
(3) |
121,850 |
111,406 |
334,922 |
298,363 |
| Normalized Net Income
(3) |
82,356 |
87,491 |
231,895 |
220,970 |
(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,
the effect of the straight lining of time charter modifications and
the compensation from charterers for drydock and other capitalized
expenses installation. 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.
Operating Revenue and Utilization
Operating revenue derived from fixed-rate,
mainly long-term, time-charters was $174.5 million in the third
quarter 2023, up $2.0 million (or 1.2%) on operating revenue of
$172.5 million in the prior year period. The period-on-period
increase in operating revenue was principally due to charter
renewals at higher rates on a number of vessels and the acquisition
of four vessels which were delivered to us in the second quarter
2023, partially offset by $7.8 million reduction in the
amortization of intangible liabilities arising on below-market
charters attached to certain vessel additions and $7.8 million
decrease in effect from straight lining time charter modifications.
There were 246 days of offhire and idle time in the third quarter
2023 of which 191 were for scheduled drydockings, compared to 149
days of offhire in the prior year period of which 47 were for
scheduled drydockings. Utilization for the third quarter 2023 was
96.1% compared to utilization of 97.5% in the prior year
period.
For the nine months ended September 30, 2023,
operating revenue was $495.9 million, up $15.3 million (or 3.2%) on
operating revenue of $480.6 million in the prior year period,
mainly due to the factors noted above.
The table below shows fleet utilization for the
three and nine months ended September 30, 2023 and 2022, and for
the years ended December 31, 2022, 2021, 2020 and 2019.
| |
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Nine months ended |
|
Year ended |
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|
Sep 30, |
Sep 30, |
|
Sep 30, |
Sep 30, |
|
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
|
Days |
2023 |
2022 |
|
2023 |
2022 |
|
2022 |
2021 |
2020 |
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
| Ownership days |
6,256 |
5,980 |
|
18,029 |
17,745 |
|
23,725 |
19,427 |
16,044 |
14,326 |
| Planned offhire - scheduled
drydock |
(191) |
(47) |
|
(627) |
(356) |
|
(581) |
(752) |
(687) |
(537) |
| Unplanned offhire |
(33) |
(102) |
|
(207) |
(338) |
|
(460) |
(260) |
(95) |
(105) |
| Idle time |
(22) |
nil |
|
(42) |
(30) |
|
(30) |
(88) |
(338) |
(164) |
| Operating days |
6,010 |
5,831 |
|
17,153 |
17,021 |
|
22,654 |
18,327 |
14,924 |
13,520 |
|
|
|
|
|
|
|
|
|
|
|
|
| Utilization |
96.1% |
97.5% |
|
95.1% |
95.9% |
|
95.5% |
94.3% |
93.0% |
94.4% |
As of September 30, 2023 one regulatory
drydocking was in progress and one further regulatory drydocking is
anticipated for the fourth quarter.
Vessel Operating Expenses
Vessel operating expenses, which are primarily
the costs of crew, lubricating oil, repairs, maintenance, insurance
and technical management fees, were up 12.4% to $46.1 million for
the third quarter 2023, compared to $41.0 million in the prior year
period. The increase of $5.1 million was mainly due to (i) our
acquisition of four vessels which were delivered to us during
second quarter 2023 (ii) increased crew expenses mainly due to
global inflation and the limited supply of crew and (iii) increased
cost of insurance due to increased premiums. The average cost per
ownership day in the quarter was $7,369, compared to $6,855 for the
prior year period, up $514 per day, or 7.5%. For the nine months
ended September 30, 2023, vessel operating expenses were $132.3
million, or an average of $7,337 per day, compared to $121.9
million in the prior year period, or $6,869 per day, an increase of
$468 per ownership day, or 6.8%.
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 $6.0 million for the third quarter 2023,
compared to $5.1 million in the prior year period. The increase was
mainly due to additional commissions, bunkers and voyage expenses
due to our acquisition of four vessels which were delivered to us
during second quarter 2023, increased commissions on charter
renewals at higher rates, additional voyage administration costs,
and additional operational requests from charterers.
For the nine months ended September 30, 2023,
time charter and voyage expenses were $18.2 million, or an average
of $1,009 per day, compared to $14.6 million in the prior year
period, or $822 per day, an increase of $187 per ownership day, or
22.7% mainly to the factors noted above.
Depreciation and Amortization
Depreciation and amortization for the third
quarter 2023 was $24.0 million, compared to $20.5 million in the
prior year period. The increase was mainly due to our acquisition
of four vessels which were delivered to us in second quarter 2023
and 16 drydockings completed after September 30, 2022.
Depreciation for the nine months ended September
30, 2023 was $67.3 million, compared to $60.6 million in the prior
year period, with the increase being due to the 16 drydockings
completed after September 30, 2022 and our acquisition of four
vessels which were delivered to us during the second quarter of
2023.
General and Administrative Expenses
General and administrative expenses were $4.2
million in the third quarter 2023, the same as in the prior year
period. The average general and administrative expense per
ownership day for the third quarter 2023 was $679, compared to $695
in the prior year period, a decrease of $16 or 2.3%.
For the nine months ended September 30, 2023,
general and administrative expenses were $13.7 million, compared to
$14.4 million in the prior year period, mainly due to lower
stock-based compensation expense in the first quarter 2023 and a
one-off expense in prior year period due to social security charges
related to settlement of shares under the Omnibus Incentive Plan,
and a decrease in the directors’ and officers’ insurance costs. The
average general and administrative expense per ownership day for
the nine-month period ended September 30, 2023 was $763, compared
to $814 in the prior year period, a decrease of $51 or 6.3%.
Adjusted EBITDA
Adjusted EBITDA (a non-GAAP financial measure)
was $121.9 million for the third quarter 2023, up from $111.4
million for the prior year period, with the net increase being
mainly due to increased revenue from charter renewals at higher
rates and the addition of four vessels which were delivered to us
during second quarter 2023.
Adjusted EBITDA for the nine months ended
September 30, 2023 was $334.9 million, compared to $298.4 million
for the prior year period, an increase of $36.5 million or
12.2%.
Interest Expense and Interest Income
Debt as of September 30, 2023 totaled $874.3
million, comprising $461.5 million of secured bank debt
collateralized by vessels, $297.5 million of 2027 Secured Notes
collateralized by vessels, and $115.3 million under sale and
leaseback financing transactions. As of September 30, 2023, five of
our vessels were unencumbered.
Debt as of September 30, 2022 totaled $999.5
million, comprising $498.7 million of secured bank debt
collateralized by vessels, $350.0 million of 2027 Secured Notes
collateralized by vessels, $150.8 million under sale and leaseback
financing transactions. As of September 30, 2022, five of our
vessels were unencumbered.
Interest and other finance expenses for the
third quarter 2023 was $11.6 million, down from $16.1 million for
the prior year period. The decrease is mainly due to the non-cash
write-off of deferred financing charges of $2.1 million plus $1.8
million premium paid following the full repayment of our 8.00%
Senior Unsecured Notes (“2024 Notes”) in July 2022, which was
partially offset by $1.3 million of accelerated amortization of
premium. The blended cost of debt, taking into account interest
rate caps, has marginally increased from approximately 4.53% for
the third quarter 2022 to 4.55% for the third quarter 2023 due to
variations in amortization schedules and the addition of a new
credit facility for the four additional vessels.
Interest and other finance expenses for the nine
months ended September 30, 2023 was $33.6 million, down from $64.9
million for the prior year period. The decrease is mainly due to
(i) the prepayment fee and the associated non-cash write off of
deferred financing charges of $14.1 million on the full repayment
of the Hayfin Credit Facility, (ii) the non-cash write off of
deferred financing charges of $0.3 million on the full repayment of
the Hellenic Credit Facility and (iii) the $2.4 million premium
paid on the redemption of the 2024 Notes, and the associated
non-cash write off of deferred financing charges of $2.1 million,
which was partially offset by $1.3 million of accelerated
amortization of premium and (iv) a prepayment fee and the
associated non-cash write off of deferred financing charges of $4.1
million on the full repayment of the Blue Ocean Junior Credit
Facility all of which took place in the nine months ended September
30, 2022, which was partially offset by increased interest expense
due to the addition of the new loan to finance the four additional
vessels.
Interest income for the third quarter 2023 was
$2.5 million, up from $0.7 million for the prior year period.
Interest income for the nine months ended
September 30, 2023 was $6.9 million, compared to $1.2 million for
the prior year period.
Other (expenses)/income, net
Other expenses, net was $0.3 million in the
third quarter 2023, compared to other income, net of $1.0 million
in the prior year period. Other income, net was $0.9 million for
the nine months ended September 30, 2023, compared to $1.2 million
for the prior year period.
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 2026 on $484.1 million of floating rate
debt, which reduces over time in line with anticipated debt
amortization 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 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. Interest rate caps have
automatically transited to 1 month Compounded SOFR on July 1, 2023
at a level of 0.64%. A positive fair value adjustment of $0.3
million for the third quarter 2023 was recorded through the
statement of income. The negative fair value adjustment for the
nine months ended September 30, 2023 amounted to $1.0 million.
Earnings Allocated to Preferred Shares
The Series B Preferred Shares carry a coupon of
8.75%, the cost of which for the third quarter 2023 was $2.4
million, the same as in the prior year period. The cost for the
nine months ended September 2023 was $7.2 million, the same as for
the prior year period.
Net Income Available to Common Shareholders
Net income available to common shareholders for
the third quarter 2023 was $82.7 million. Net income available to
common shareholders for the prior year period was $89.6
million.
Earnings per share for the third quarter 2023
was $2.34, a decrease of 4.1% from the earnings per share for the
prior year period, which was $2.44.
For the nine months ended September 30, 2023,
net income available to common shareholders was $230.3 million. Net
income available to common shareholders for the prior year period
was $210.8 million.
Earnings per share for the nine months ended
September 30, 2023 was $6.49, an increase of 12.9% from the
earnings per share for the prior year period, which was $5.75.
Normalized net income (a non-GAAP financial
measure) for the third quarter 2023, was $82.4 million. Normalized
net income for the prior year period was $87.5 million. Normalized
net income for the nine months ended September 30, 2023 was $231.9
million, as compared to $221.0 for the prior year period.
Normalized earnings per share (a non-GAAP
financial measure) for the third quarter 2023 was $2.33, a decrease
of 2.1% from Normalized earnings per share for the prior year
period, which was $2.38.
Normalized earnings per share for the nine
months ended September 30, 2023 was $6.54, an increase of 8.5% from
Normalized earnings per share for the prior year period, which was
$6.03.
Fleet
As of September 30, 2023, we had 68
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(3) |
3Q25 |
4Q25(3) |
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) |
Footnote(5) |
|
GSL Alexandra |
8,544 |
37,777 |
2004 |
Confidential |
3Q25 |
3Q26 |
Footnote(6) |
|
GSL Sofia |
8,544 |
37,777 |
2003 |
Confidential |
3Q25 |
3Q26 |
Footnote(6) |
|
GSL Effie |
8,544 |
37,777 |
2003 |
Confidential |
3Q25 |
4Q26 |
Footnote(6) |
|
GSL Lydia |
8,544 |
37,777 |
2003 |
Confidential |
2Q25 |
3Q26 |
Footnote(6) |
|
GSL Eleni |
7,847 |
29,261 |
2004 |
Maersk |
3Q24 |
1Q25(7) |
16,500(7) |
|
GSL Kalliopi |
7,847 |
29,105 |
2004 |
Maersk |
3Q24 |
4Q24(7) |
18,900(7) |
|
GSL Grania |
7,847 |
29,190 |
2004 |
Maersk |
3Q24 |
1Q25(7) |
17,750(7) |
|
Mary(1) |
6,927 |
23,424 |
2013 |
CMA CGM(8) |
4Q28 |
1Q31(8) |
25,910(8) |
|
Kristina(1) |
6,927 |
23,421 |
2013 |
CMA CGM(8) |
3Q29 |
4Q31(8) |
25,910(8) |
|
Katherine(1) |
6,927 |
23,403 |
2013 |
CMA CGM(8) |
1Q29 |
2Q31(8) |
25,910(8) |
|
Alexandra(1) |
6,927 |
23,348 |
2013 |
CMA CGM(8) |
2Q29 |
3Q31(8) |
25,910(8) |
|
Alexis(1) |
6,882 |
23,919 |
2015 |
CMA CGM(8) |
2Q29 |
3Q31(8) |
25,910(8) |
|
Olivia I(1) |
6,882 |
23,864 |
2015 |
CMA CGM(8) |
2Q29 |
2Q31(8) |
25,910(8) |
|
GSL Christen |
6,840 |
27,954 |
2002 |
Maersk |
4Q23 |
4Q23 |
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(9) |
|
GSL Arcadia |
6,008 |
24,858 |
2000 |
Maersk |
2Q24 |
1Q26 |
18,600(9) |
|
GSL Violetta |
6,008 |
24,873 |
2000 |
Maersk |
4Q24 |
4Q25 |
18,600(9) |
|
GSL Maria |
6,008 |
24,414 |
2001 |
Maersk |
4Q24 |
1Q27 |
18,600(9) |
|
GSL MYNY |
6,008 |
24,873 |
2000 |
Maersk |
3Q24 |
1Q26 |
18,600(9) |
|
GSL Melita |
6,008 |
24,848 |
2001 |
Maersk |
3Q24 |
3Q26 |
18,600(9) |
|
GSL Tegea |
5,992 |
24,308 |
2001 |
Maersk |
3Q24 |
3Q26 |
18,600(9) |
|
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(10) |
|
GSL Kithira |
5,470 |
22,108 |
2009 |
Maersk |
4Q24 |
1Q28 |
36,500(10) |
|
GSL Tinos |
5,470 |
22,067 |
2010 |
Maersk |
4Q24 |
4Q27 |
36,500(10) |
|
GSL Syros |
5,470 |
22,098 |
2010 |
Maersk |
4Q24 |
4Q27 |
36,500(10) |
|
Dolphin II |
5,095 |
20,596 |
2007 |
OOCL |
1Q25 |
3Q25 |
53,500 |
|
Orca I |
5,095 |
20,633 |
2006 |
Maersk |
2Q24 |
4Q25 |
21,000(11) |
|
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 |
Footnote(12) |
|
CMA CGM Jamaica |
4,298 |
17,272 |
2006 |
CMA CGM |
1Q28 |
2Q28 |
Footnote(12) |
|
CMA CGM Sambhar |
4,045 |
17,429 |
2006 |
CMA CGM |
1Q28 |
2Q28 |
Footnote(12) |
|
CMA CGM America |
4,045 |
17,428 |
2006 |
CMA CGM |
1Q28 |
2Q28 |
Footnote(12) |
|
GSL Rossi |
3,421 |
16,420 |
2012 |
ZIM |
1Q26 |
3Q26 |
38,875(13) |
|
GSL Alice |
3,421 |
16,543 |
2014 |
CMA CGM |
2Q25 |
2Q25 |
20,500(14) |
|
GSL Eleftheria |
3,404 |
16,642 |
2013 |
Maersk |
3Q25 |
4Q25 |
37,975 |
|
GSL Melina |
3,404 |
16,703 |
2013 |
Hapag-Lloyd |
2Q24 |
3Q24 |
21,000 |
|
GSL Valerie |
2,824 |
11,971 |
2005 |
ZIM |
1Q25 |
3Q25 |
35,600(15) |
|
Matson Molokai |
2,824 |
11,949 |
2007 |
Matson |
2Q25 |
3Q25 |
36,500 |
|
GSL Lalo |
2,824 |
11,950 |
2006 |
MSC |
1Q24 |
2Q24 |
17,500 |
|
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 |
Unifeeder |
1Q24 |
2Q24 |
15,250 |
|
Beethoven (tbr GSL Chloe) |
2,546 |
12,212 |
2012 |
ONE |
4Q24 |
1Q25 |
33,000 |
|
GSL Maren |
2,546 |
12,243 |
2014 |
Swire |
1Q24 |
2Q24 |
18,200(16) |
|
Maira |
2,506 |
11,453 |
2000 |
Hapag-Lloyd |
3Q24 |
4Q24 |
17,750(17) |
|
Nikolas |
2,506 |
11,370 |
2000 |
CMA CGM |
1Q24 |
1Q24 |
16,750 |
|
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 |
Confidential |
2Q25 |
3Q25 |
Footnote(18) |
|
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 September 30, 2023 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 scheduled to
commence upon expiry of the existing charter in 4Q 2023. 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 was chartered to MSC at $22,500 per day to 3Q 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 Alexandra, GSL Sofia, GSL Effie and GSL Lydia delivered in
2Q 2023. 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, increasing to $95.3
million if all options are exercised. |
| (7) |
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. The first of these extension
options was exercised for both vessels in 2Q 2022 and commenced for
GSL Grania and for GSL Kalliopi in 3Q and in 4Q 2022, respectively.
The second of these extension options was exercised for both
vessels in 2Q 2023 and commenced for both vessels in 3Q 2023.
During the option periods the charter rates for GSL Kalliopi and
GSL Grania are $18,900 per day and $17,750 per day
respectively. |
| (8) |
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. The charters are expected to generate average annualized
Adjusted EBITDA of approximately $13.1 million per ship. |
| (9) |
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. |
| (10) |
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. |
| (11) |
Orca I. Chartered at $21,000 per day through to the median
expiry of the charter in 2Q 2024; thereafter the charterer has the
option in 1Q 2024 to charter the vessel for a further 12-14 months
at the same rate from 3Q 2024. |
| (12) |
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. |
| (13) |
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. |
| (14) |
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. |
| (15) |
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. |
| (16) |
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 per day. |
| (17) |
Maira. Chartered to 4Q 2023 at $17,750 per day; thereafter,
extended at $16,000 per day to 3Q 2024 / 4Q 2024. |
| (18) |
Julie. Forward fixed to a leading liner company for a period of
24 months +/- 30 days at the option of the charterer. The new
charter commenced in 3Q 2023, after the vessel’s scheduled drydock.
The new charter is expected to generate annualized Adjusted EBITDA
of approximately $2.0 million. |
Conference Call and Webcast
Global Ship Lease will hold a conference call to
discuss the Company's results for the three and nine months ended
September 30, 2023 today, Thursday November 9, 2023 at 10:30 a.m.
Eastern Time. There are two ways to access the conference call:
(1) Dial-in: (646)
968-2525 or (888) 596-4144; Event ID: 9486690
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 of September 30, 2023, Global Ship
Lease owned 68 containerships ranging from 2,207 to 11,040
TEU, with an aggregate capacity of 375,406 TEU. 36 ships are
wide-beam Post-Panamax.
As of September 30, 2023, the average remaining
term of the Company’s charters, to the mid-point of redelivery,
including options under the Company’s control and other than if a
redelivery notice has been received, was 2.1 years on a
TEU-weighted basis. Contracted revenue on the same basis
was $1.81 billion. Contracted revenue was $2.23 billion,
including options under charterers’ control and with latest
redelivery date, representing a weighted average remaining term of
2.8 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 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, amortization of intangible liabilities, charges for
share 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 |
Three |
Nine |
Nine |
| |
|
months |
months |
months |
months |
| |
|
ended |
ended |
ended |
ended |
| |
|
September 30, |
September 30, |
September 30, |
September 30, |
| |
|
2023 |
2022 |
2023 |
2022 |
| |
|
|
|
|
|
| Net income
available to Common Shareholders |
82,687 |
89,611 |
230,299 |
210,768 |
| |
|
|
|
|
|
| Adjust: |
Depreciation and
amortization |
23,980 |
20,522 |
67,336 |
60,647 |
| |
Amortization of
intangible liabilities |
(1,518) |
(9,305) |
(6,563) |
(32,725) |
| |
Fair value
adjustment on derivative asset |
(331) |
(4,660) |
1,037 |
(11,308) |
| |
Interest
income |
(2,501) |
(680) |
(6,895) |
(1,195) |
| |
Interest
expense |
11,615 |
16,142 |
33,623 |
64,884 |
| |
Share based
compensation |
2,505 |
2,222 |
7,684 |
7,882 |
| |
Earnings allocated
to preferred shares |
2,384 |
2,384 |
7,152 |
7,152 |
| |
Income tax |
- |
(50) |
5 |
(50) |
| |
Effect from
straight lining time charter modifications |
3,029 |
(4,780) |
1,244 |
(7,692) |
| Adjusted
EBITDA |
121,850 |
111,406 |
334,922 |
298,363 |
B. Normalized net
incomeNormalized 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 |
Three |
Nine |
Nine |
| |
|
months |
months |
months |
months |
| |
|
ended |
ended |
ended |
ended |
| |
|
September 30, |
September 30, |
September 30, |
September 30, |
| |
|
2023 |
2022 |
2023 |
2022 |
| |
|
|
|
|
|
| Net income
available to Common Shareholders |
82,687 |
89,611 |
230,299 |
210,768 |
| |
|
|
|
|
|
| Adjust: |
Fair value
adjustment on derivative assets |
(331) |
(4,660) |
1,037 |
(11,308) |
| |
Premium paid on
redemption of 2024 Notes |
- |
1,780 |
- |
2,350 |
| |
Accelerated write
off of deferred financing charges related to redemption of 2024
Notes |
- |
2,104 |
- |
2,104 |
| |
Accelerated write
off of premium related to redemption of 2024 Notes |
- |
(1,344) |
- |
(1,344) |
| |
Accelerated write
off of deferred financing charges related to full repayment of
Hellenic Credit Facility |
- |
- |
- |
298 |
| |
Accelerated write
off of deferred financing charges related to full repayment of
Hayfin Credit Facility |
- |
- |
- |
2,822 |
| |
Prepayment fee on
repayment of Hayfin Credit Facility |
- |
- |
- |
11,229 |
| |
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 |
| |
Accelerated write
off of deferred financing charges related to partial repayment of
HCOB-CACIB Credit Facility |
- |
- |
108 |
- |
| |
Forfeit of certain
stock-based compensation awards |
- |
- |
451 |
- |
| Normalized net
income |
82,356 |
87,491 |
231,895 |
220,970 |
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 |
Three |
Nine |
Nine |
| |
months |
months |
months |
months |
| |
ended |
ended |
ended |
ended |
| |
September 30, |
September 30, |
September 30, |
September 30, |
| |
2023 |
2022 |
2023 |
2022 |
| |
|
|
|
|
| EPS as reported (USD) |
2.34 |
2.44 |
6.49 |
5.75 |
| Normalized net income
adjustments-Class A common shares (in thousands USD) |
(331) |
(2,120) |
1,596 |
10,202 |
| Weighted average number of
Class A Common shares |
35,355,554 |
36,790,836 |
35,473,382 |
36,649,874 |
| Adjustment on EPS (USD) |
(0.01) |
(0.06) |
0.05 |
0.28 |
| Normalized EPS (USD) |
2.33 |
2.38 |
6.54 |
6.03 |
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 and the
recent escalation of the Israel-Gaza conflict;
- 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 and
willingness to pay charterhire to us in accordance with the
charters and our expectations regarding the same;
- 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 loan agreements;
- 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 vessel operation, including piracy,
discharge of pollutants and vessel accidents and damage including
total or constructive total loss;
- estimated future capital expenditures needed to preserve 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);
- potential liability from future litigation; and
- other important factors described from time to time in the
reports we file with the U.S. Securities and Exchange Commission
(the “SEC”).
Forward-looking statements are subject to known
and unknown risks and uncertainties and are based on potentially
inaccurate assumptions that could cause actual results to differ
materially from those expected or implied by the forward-looking
statements. Global Ship Lease's actual results could differ
materially from those anticipated in forward-looking statements for
many reasons specifically as described in Global Ship Lease's
filings with the SEC. Accordingly, you should not unduly rely on
these forward-looking statements, which speak only as of the date
of this communication. Global Ship Lease undertakes no obligation
to publicly revise any forward-looking statement to reflect
circumstances or events after the date of this communication or to
reflect the occurrence of unanticipated events. You should,
however, review the factors and risks Global Ship Lease describes
in the reports it will file from time to time with the SEC after
the date of this communication.
|
Global Ship Lease, Inc. |
|
|
|
Interim Unaudited Condensed Consolidated
Balance Sheets |
|
|
|
(Expressed in thousands of U.S. dollars except share data) |
| |
| |
September 30, 2023 |
|
December 31, 2022 |
|
ASSETS |
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
|
|
| Cash and cash equivalents |
$ |
98,086 |
|
$ |
120,130 |
| Time deposits |
|
14,000 |
|
|
8,550 |
| Restricted cash |
|
62,208 |
|
|
28,363 |
| Accounts receivable, net |
|
3,737 |
|
|
3,684 |
| Inventories |
|
14,114 |
|
|
12,237 |
| Prepaid expenses and other
current assets |
|
42,025 |
|
|
33,765 |
| Derivative asset |
|
29,580 |
|
|
29,645 |
| Due from related parties |
|
617 |
|
|
673 |
| Total current
assets |
$ |
264,367 |
|
$ |
237,047 |
| NON - CURRENT
ASSETS |
|
|
|
|
|
| Vessels in operation |
$ |
1,700,935 |
|
$ |
1,623,307 |
| Advances for vessels'
acquisitions and other additions |
|
5,872 |
|
|
4,881 |
| Deferred charges, net |
|
73,468 |
|
|
54,663 |
| Other non - current
assets |
|
26,220 |
|
|
31,022 |
| Derivative asset, net of
current portion |
|
27,275 |
|
|
33,858 |
| Restricted cash, net of
current portion |
|
93,049 |
|
|
121,437 |
| Total non - current
assets |
|
1,926,819 |
|
|
1,869,168 |
| TOTAL
ASSETS |
$ |
2,191,186 |
|
$ |
2,106,215 |
| LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
|
|
| Accounts payable |
$ |
19,304 |
|
$ |
22,755 |
| Accrued liabilities |
|
29,248 |
|
|
36,038 |
| Current portion of long-term
debt |
|
200,626 |
|
|
189,832 |
| Current portion of deferred
revenue |
|
41,106 |
|
|
12,569 |
| Due to related parties |
|
516 |
|
|
572 |
| Total current
liabilities |
$ |
290,800 |
|
$ |
261,766 |
| LONG-TERM
LIABILITIES |
|
|
|
|
|
| Long - term debt, net of
current portion and deferred financing costs |
$ |
661,471 |
|
$ |
744,557 |
| Intangible liabilities-charter
agreements |
|
7,179 |
|
|
14,218 |
| Deferred revenue, net of
current portion |
|
90,178 |
|
|
119,183 |
| Total non - current
liabilities |
|
758,828 |
|
|
877,958 |
| Total
liabilities |
$ |
1,049,628 |
|
$ |
1,139,724 |
| Commitments and
Contingencies |
|
- |
|
|
- |
| SHAREHOLDERS'
EQUITY |
|
|
|
|
|
| Class A common shares -
authorized 214,000,000 shares with a $0.01 par value 35,192,029
shares issued and outstanding (2022 – 35,990,288 shares) |
$ |
351 |
|
$ |
359 |
| Series B Preferred Shares -
authorized 104,000 shares with a $0.01 par value 43,592 shares
issued and outstanding (2022 – 43,592 shares) |
|
- |
|
|
- |
| Additional paid in
capital |
|
675,635 |
|
|
688,262 |
| Retained earnings |
|
436,698 |
|
|
246,390 |
| Accumulated other
comprehensive income |
|
28,874 |
|
|
31,480 |
| Total shareholders'
equity |
|
1,141,558 |
|
|
966,491 |
| TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
$ |
2,191,186 |
|
$ |
2,106,215 |
|
Global Ship Lease, Inc. |
|
|
|
Interim Unaudited Condensed
ConsolidatedStatements of Income |
|
|
|
(Expressed in thousands of U.S. dollars) |
| |
| |
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
| OPERATING
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
Time charter revenue (include related party revenues of $nil and
$nil for each of the three month periods ended September 30, 2023
and 2022, respectively, and $nil and $66,929 for each of the nine
month periods ended September 30, 2023 and 2022, respectively) |
$ |
173,012 |
|
|
$ |
163,231 |
|
|
$ |
489,338 |
|
|
$ |
447,898 |
|
| Amortization of intangible
liabilities-charter agreements (includes related party amortization
of intangible liabilities-charter agreements of $nil and $nil for
the three month periods ended September 30, 2023 and 2022,
respectively, and $nil and $5,385 for each of the nine month
periods ended September 30, 2023 and 2022, respectively) |
|
1,518 |
|
|
|
9,305 |
|
|
|
6,563 |
|
|
|
32,725 |
|
| Total Operating
Revenues |
|
174,530 |
|
|
|
172,536 |
|
|
|
495,901 |
|
|
|
480,623 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
| Vessel operating expenses
(include related party vessel operating expenses of $5,171 and
$4,077 for each of the three month periods ended September 30, 2023
and 2022, respectively, and $14,072 and $12,686 for each of the
nine month periods ended September 30, 2023 and 2022,
respectively) |
|
46,099 |
|
|
|
40,997 |
|
|
|
132,268 |
|
|
|
121,883 |
|
| Time charter and voyage expenses
(includes related party time charter and voyage expenses of $2,139
and $1,696 for the three month periods ended September 30, 2023 and
2022, respectively, and $5,801 and $4,646 for each of the nine
month periods ended September 30, 2023 and 2022, respectively) |
|
6,046 |
|
|
|
5,136 |
|
|
|
18,185 |
|
|
|
14,594 |
|
| Depreciation and
amortization |
|
23,980 |
|
|
|
20,522 |
|
|
|
67,336 |
|
|
|
60,647 |
|
| General and administrative
expenses |
|
4,248 |
|
|
|
4,156 |
|
|
|
13,748 |
|
|
|
14,448 |
|
| Operating
Income |
|
94,157 |
|
|
|
101,725 |
|
|
|
264,364 |
|
|
|
269,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NON-OPERATING
INCOME/(EXPENSES) |
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
2,501 |
|
|
|
680 |
|
|
|
6,895 |
|
|
|
1,195 |
|
| Interest and other finance
expenses |
|
(11,615 |
) |
|
|
(16,142 |
) |
|
|
(33,623 |
) |
|
|
(64,884 |
) |
| Other (expenses)/income,
net |
|
(303 |
) |
|
|
1,022 |
|
|
|
857 |
|
|
|
1,200 |
|
| Fair value adjustment on
derivative asset |
|
331 |
|
|
|
4,660 |
|
|
|
(1,037 |
) |
|
|
11,308 |
|
| Total non-operating
expenses |
|
(9,086 |
) |
|
|
(9,780 |
) |
|
|
(26,908 |
) |
|
|
(51,181 |
) |
| Income before income
taxes |
|
85,071 |
|
|
|
91,945 |
|
|
|
237,456 |
|
|
|
217,870 |
|
| Income taxes |
|
- |
|
|
|
50 |
|
|
|
(5 |
) |
|
|
50 |
|
| Net
Income |
|
85,071 |
|
|
|
91,995 |
|
|
|
237,451 |
|
|
|
217,920 |
|
| Earnings allocated to Series B
Preferred Shares |
|
(2,384 |
) |
|
|
(2,384 |
) |
|
|
(7,152 |
) |
|
|
(7,152 |
) |
| Net Income available
to Common Shareholders |
$ |
82,687 |
|
|
$ |
89,611 |
|
|
$ |
230,299 |
|
|
$ |
210,768 |
|
|
Global Ship Lease, Inc. |
|
|
|
Interim Unaudited Condensed Consolidated Statements of Cash
Flows |
|
|
|
(Expressed in thousands of U.S. dollars) |
| |
| |
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
| Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
85,071 |
|
|
$ |
91,995 |
|
|
$ |
237,451 |
|
|
$ |
217,920 |
|
| Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and
amortization |
$ |
23,980 |
|
|
$ |
20,522 |
|
|
$ |
67,336 |
|
|
$ |
60,647 |
|
| Amounts reclassified from
other comprehensive income |
|
96 |
|
|
|
- |
|
|
|
(80 |
) |
|
|
- |
|
| Amortization of derivative
asset's premium |
|
1,149 |
|
|
|
370 |
|
|
|
3,085 |
|
|
|
499 |
|
| Amortization of deferred
financing costs |
|
1,279 |
|
|
|
3,658 |
|
|
|
4,115 |
|
|
|
9,751 |
|
| Amortization of original issue
premium on repurchase of notes |
|
- |
|
|
|
436 |
|
|
|
- |
|
|
|
762 |
|
| Amortization of intangible
liabilities-charter agreements |
|
(1,518 |
) |
|
|
(9,305 |
) |
|
|
(6,563 |
) |
|
|
(32,725 |
) |
| Fair value adjustment on
derivative asset |
|
(331 |
) |
|
|
(4,660 |
) |
|
|
1,037 |
|
|
|
(11,308 |
) |
| Prepayment fees on debt
repayment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
15,197 |
|
| Stock-based compensation
expense |
|
2,505 |
|
|
|
2,222 |
|
|
|
7,684 |
|
|
|
7,882 |
|
| Changes in operating
assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| Increase in accounts
receivable and other assets |
$ |
(1,049 |
) |
|
$ |
(7,821 |
) |
|
$ |
(3,511 |
) |
|
$ |
(14,005 |
) |
| (Increase)/decrease in
inventories |
|
(715 |
) |
|
|
398 |
|
|
|
(1,877 |
) |
|
|
(145 |
) |
| Increase in derivative
asset |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(15,370 |
) |
| Increase/(decrease) in
accounts payable and other liabilities |
|
5,394 |
|
|
|
(1,045 |
) |
|
|
(5,274 |
) |
|
|
(2,060 |
) |
| (Increase)/decrease in related
parties' balances, net |
|
(745 |
) |
|
|
364 |
|
|
|
- |
|
|
|
2,547 |
|
| (Decrease)/increase in
deferred revenue |
|
(12,708 |
) |
|
|
18,431 |
|
|
|
(468 |
) |
|
|
19,038 |
|
| Unrealized foreign exchange
(gain)/loss |
|
(1 |
) |
|
|
(2 |
) |
|
|
- |
|
|
|
3 |
|
| Net cash provided by
operating activities |
$ |
102,407 |
|
|
$ |
115,563 |
|
|
$ |
302,935 |
|
|
$ |
258,633 |
|
| Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
| Acquisition of vessels |
$ |
- |
|
|
$ |
- |
|
|
$ |
(123,300 |
) |
|
$ |
- |
|
| Cash paid for vessel
expenditures |
|
(8,018 |
) |
|
|
(1,204 |
) |
|
|
(12,569 |
) |
|
|
(4,429 |
) |
| Advances for vessel
acquisitions and other additions |
|
(841 |
) |
|
|
(511 |
) |
|
|
(6,786 |
) |
|
|
(2,835 |
) |
| Cash paid for drydockings |
|
(15,086 |
) |
|
|
(4,463 |
) |
|
|
(33,386 |
) |
|
|
(19,716 |
) |
| Net proceeds from sale of
vessel |
|
- |
|
|
|
- |
|
|
|
5,940 |
|
|
|
- |
|
| Time deposits acquired |
|
(1,400 |
) |
|
|
(9,600 |
) |
|
|
(5,450 |
) |
|
|
(9,500 |
) |
| Net cash used in
investing activities |
$ |
(25,345 |
) |
|
$ |
(15,778 |
) |
|
$ |
(175,551 |
) |
|
$ |
(36,480 |
) |
| Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
| Repurchase of 2024 Notes,
including premium |
$ |
- |
|
|
$ |
(90,801 |
) |
|
$ |
- |
|
|
$ |
(119,871 |
) |
| Proceeds from drawdown of
credit facilities |
|
- |
|
|
|
- |
|
|
|
76,000 |
|
|
|
60,000 |
|
| Proceeds from 2027 Secured
Notes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
350,000 |
|
| Repayment of credit
facilities/sale and leaseback |
|
(50,996 |
) |
|
|
(37,162 |
) |
|
|
(151,267 |
) |
|
|
(117,080 |
) |
| Repayment of refinanced debt,
including prepayment fees |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(276,671 |
) |
| Deferred financing costs
paid |
|
- |
|
|
|
(391 |
) |
|
|
(1,140 |
) |
|
|
(9,655 |
) |
| Cancellation of Class A common
shares |
|
(3,441 |
) |
|
|
(9,985 |
) |
|
|
(20,421 |
) |
|
|
(14,910 |
) |
| Class A common shares-dividend
paid |
|
(13,300 |
) |
|
|
(13,856 |
) |
|
|
(39,991 |
) |
|
|
(36,949 |
) |
| Series B preferred
shares-dividend paid |
|
(2,384 |
) |
|
|
(2,384 |
) |
|
|
(7,152 |
) |
|
|
(7,152 |
) |
| Net cash used in
financing activities |
$ |
(70,121 |
) |
|
$ |
(154,579 |
) |
|
$ |
(143,971 |
) |
|
$ |
(172,288 |
) |
| Net
increase/(decrease) in cash and cash equivalents and restricted
cash |
|
6,941 |
|
|
|
(54,794 |
) |
|
|
(16,587 |
) |
|
|
49,865 |
|
| Cash and cash equivalents and
restricted cash at beginning of the period |
|
246,402 |
|
|
|
300,301 |
|
|
|
269,930 |
|
|
|
195,642 |
|
| Cash and cash
equivalents and restricted cash at end of the period |
$ |
253,343 |
|
|
$ |
245,507 |
|
|
$ |
253,343 |
|
|
$ |
245,507 |
|
| Supplementary Cash
Flow Information: |
|
|
|
|
|
|
|
|
|
|
|
| Cash paid for interest |
|
17,683 |
|
|
|
9,173 |
|
|
|
51,012 |
|
|
|
34,470 |
|
| Cash received from interest
rate caps |
|
8,464 |
|
|
|
2,993 |
|
|
|
24,380 |
|
|
|
3,247 |
|
| Non-cash investing
activities: |
|
|
|
|
|
|
|
|
|
|
|
| Unpaid capitalized
expenses |
|
5,298 |
|
|
|
7,334 |
|
|
|
5,298 |
|
|
|
7,334 |
|
| Unpaid drydocking
expenses |
|
10,622 |
|
|
|
7,396 |
|
|
|
10,622 |
|
|
|
7,396 |
|
| Non-cash financing
activities: |
|
|
|
|
|
|
|
|
|
|
|
| Unrealized (loss)/gain on
derivative assets |
|
(380 |
) |
|
|
12,349 |
|
|
|
(5,611 |
) |
|
|
35,263 |
|
Investor and Media Contacts: The IGB GroupBryan
Degnan646-673-9701orLeon Berman 212-477-8438
Global Ship Lease (NYSE:GSL)
Historical Stock Chart
From Sep 2024 to Oct 2024
Global Ship Lease (NYSE:GSL)
Historical Stock Chart
From Oct 2023 to Oct 2024
