Fourth Quarter 2018 and Full Year Highlights
- Reported operating revenues of
- Reported net loss(1) of
- Generated
- Normalized net income (1)(2), excluding costs and charges associated with the strategic combination, the non-cash impairment charge and the premium paid for amortization of our high yield notes, was
- On
- On
- On
- On
SELECTED FINANCIAL DATA – UNAUDITED (thousands of U.S. dollars)
Three months ended |
Three months ended |
|||||||||||
Year ended |
Year ended |
|||||||||||
December 31, 2018 |
December 31, 2017 |
December 31, 2018 |
December 31, 2017 |
|||||||||
Operating Revenues (3) | 50,021 | 37,927 | 157,097 | 159,278 | ||||||||
Operating (Loss) | (56,205) | (72,178) | (10,261) | (15,353) | ||||||||
Net (Loss) (1) | (72,503) | (99,824) | (60,426) | (77,328) | ||||||||
Adjusted EBITDA (2) | 26,577 | 24,841 | 97,241 | 110,303 | ||||||||
Normalized Net Income (1)(2) | 1,698 | 2,190 | 13,775 | 25,206 | ||||||||
The results for the three months and year ended
(2) Adjusted EBITDA and Normalized net income are non-US Generally Accepted Accounting Principles (US GAAP) financial measures, as explained further in this press release, and are considered by
(3) Operating Revenues are net of address commissions. Brokerage commissions are included in Time charter and voyage expenses.
Following the Poseidon Transaction, minor reclassifications of expenses and balance sheet items have taken place.
Operating Revenues and Utilization
The Company’s fleet generated operating revenues from fixed-rate time charters of
For the year ended
The table below shows our fleet utilization for the three months and years ended
Three months ended | Year ended | |||||||||||||
Dec 31, | Dec 31, | Dec 31, | Dec 31, | Dec 31, | Dec 31, | Dec 31, | ||||||||
Days | 2018 | 2017 | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||
Ownership days | 2,656 | 1,656 | 7,675 | 6,570 | 6,588 | 6,893 | 6,270 | |||||||
Planned offhire - scheduled drydock | 0 | 0 | (34 | ) | (62 | ) | (100 | ) | (9 | ) | (48 | ) | ||
Unplanned offhire | (7 | ) | (10 | ) | (17 | ) | (40 | ) | (3 | ) | (7 | ) | (12 | ) |
Idle time | (30 | ) | 0 | (47 | ) | 0 | 0 | (13 | ) | (64 | ) | |||
Operating days | 2,619 | 1,646 | 7.577 | 6,468 | 6,485 | 6,864 | 6,146 | |||||||
Utilization | 98.6 | % | 99.4 | % | 98.7 | % | 98.4 | % | 98.4 | % | 99.6 | % | 98.0 | % |
There were two regulatory drydockings in 2018 and four in 2017. Two regulatory drydockings are due in 2019.
Vessel Operating Expenses
Vessel operating expenses, which include costs of crew, lubricating oil, repairs, maintenance, insurance and management fees, were
For the year ended
Time Charter and Voyage Expenses
Time charter and voyage expenses comprise mainly commission paid to third party ship brokers, the cost of bunker fuel for owner’s account when a vessel is off-hire or idle and miscellaneous costs associated with a vessel’s voyage. Time charter and voyage expenses were
Time charter and voyage costs were
Depreciation and amortization
Depreciation and amortization for the three months ended
Depreciation and amortization for the year ended
Impairment
The Company’s accounting policies require that tangible fixed assets, such as vessels, are reviewed for impairment when events or changes in circumstances indicate that their carrying amounts may not be recoverable.
Charter rates in the spot market and asset values improved through the first half of 2018 but softened towards the end of the year. While overall market developments are encouraging, taking into account the seasonal as well as cyclical nature of the container shipping industry, we determined that it would nonetheless be appropriate under US GAAP to review our legacy vessels for impairment as at
At
General and Administrative Expenses
General and administrative expenses were
For the year ended
Adjusted EBITDA
As a result of the above, Adjusted EBITDA was
Adjusted EBITDA for the year ended
Interest Expense
Debt at
Debt at
Interest expense for the three months ended
For the year ended
Interest income for the three months ended
Other income, net
Other income, net is mainly comprised of gains in bunkers following deliveries and redeliveries of vessels from charterers and passenger income. Other income, net was
For the year ended
Taxation
Taxation for the three months ended
Taxation for the year ended
Earnings Allocated to Preferred Shares
The Series B Preferred Shares carry a coupon of 8.75%, the cost of which for the three months ended
The cost in the year ended
Net (Loss) Available to Common Shareholders and Normalized Net Income
Net loss for the three months ended
Normalized net income for the three months ended
Net loss was
Normalized net income for the year ended
Fleet
The following table provides information about our on-the-water fleet of 38 vessels as at
Vessel Name | TEUs | Lightweight (tons) | Year Built | Charterer | Earliest Charter Expiry Date |
Latest Charter Expiry Date |
Daily Charter Rate $ |
|||||||||
CMA CGM Thalassa | 11,040 | 38,577 | 2008 | CMA CGM | 4Q25 | 1Q26 | 47,200 | |||||||||
UASC Al Khor(1) | 9,115 | 31,764 | 2015 | Hapag-Lloyd | 1Q19 | 2Q19 | 40,000 | |||||||||
Anthea Y(1) | 9,115 | 31,890 | 2015 | COSCO | 2Q20 | 3Q20 | 39,200 | |||||||||
Maira XL(1) | 9,115 | 31,820 | 2015 | COSCO | 2Q20 | 3Q20 | 39,200 | |||||||||
GSL Tianjin | 8.063(12) | 34,243 | 2005 | CMA CGM | 2Q19 | 3Q19 | 11,900(2) | |||||||||
OOCL Qingdao | 8,063(12) | 34,305 | 2004 | OOCL | 1Q19 | 2Q19 | 14,000 | |||||||||
GSL Ningbo | 8,063(12) | 34,243 | 2004 | Maersk | 2Q19 | 4Q20 | 12,100(3) | |||||||||
Mary(1) | 6,927 | 23,424 | 2013 | CMA CGM | 3Q23 | 4Q23 | 25,910 | |||||||||
Kristina (1) | 6,927 | 23,424 | 2013 | Wan Hai | 2Q19 | 3Q19(4) | 19,500(4) | |||||||||
Katherine(1) | 6,927 | 23,424 | 2013 | MSC | 1Q19 | 1Q19(4) | 13,500(4) | |||||||||
Alexandra(1) | 6,927 | 23,424 | 2013 | ONE | 1Q19 | 2Q19(4) | 20,750(4) | |||||||||
UASC Bubiyan(1) | 6,882 | 23,919 | 2015 | Hapag-Lloyd | 1Q19 | 2Q19(4) | 20,000(4) | |||||||||
UASC Yas(1)(11) | 6,882 | 23,864 | 2015 | Hapag-Lloyd | 1Q19 | 2Q19(4) | 20,000(4) | |||||||||
CMA CGM Berlioz | 6,621 | 26,776 | 2001 | CMA CGM | 2Q21 | 4Q21 | 34,000 | |||||||||
Agios Dimitrios | 6,572 | 24,746 | 2011 | MSC | 3Q19 | 4Q19(5) | 12,500(5) | |||||||||
Tasman | 5,936 | 25,010 | 2000 | ZIM | 1Q19 | 3Q19(6) | 16,350(6) | |||||||||
Dimitris Y | 5,936 | 25,010 | 2000 | ZIM | 2Q19 | 3Q19 | 16,750 | |||||||||
Ian H | 5,936 | 25,128 | 2000 | ZIM | 2Q19 | 3Q19 | 17,000 | |||||||||
Dolphin II | 5,095 | 20,596 | 2007 | HMM | 2Q19 | 4Q19(7) | 7,700(7) | |||||||||
Orca I | 5,095 | 20,696 | 2006 | ZIM | 2Q19 | 3Q19 | 11,750 | |||||||||
CMA CGM Alcazar | 5,089 | 20,087 | 2007 | CMA CGM | 4Q20 | 2Q21 | 33,750 | |||||||||
CMA CGM Château d’If | 5,089 | 20,100 | 2007 | CMA CGM | 4Q20 | 2Q21 | 33,750 | |||||||||
CMA CGM Jamaica | 4,298 | 17,272 | 2006 | CMA CGM | 3Q22 | 1Q23 | 25,350 | |||||||||
CMA CGM Sambhar | 4,045 | 17,355 | 2006 | CMA CGM | 3Q22 | 1Q23 | 25,350 | |||||||||
CMA CGM America | 4,045 | 17,355 | 2006 | CMA CGM | 3Q22 | 1Q23 | 25,350 | |||||||||
GSL Valerie | 2,824 | 11,971 | 2005 | CMA CGM | 2Q19 | 3Q19 | 9,000 | |||||||||
Athena | 2,762 | 13,538 | 2003 | MSC | 1Q19 | 2Q19 | 9,000 | |||||||||
Maira | 2,506 | 11,453 | 2000 | MSC | 1Q19 | 1Q19(8) | 9,000(8) | |||||||||
Nikolas | 2,506 | 11,370 | 2000 | MSC | 1Q19 | 2Q19 | 9,000 | |||||||||
New Yorker | 2,506 | 11,463 | 2001 | MSC | 1Q19 | 2Q19 | 9,000 | |||||||||
CMA CGM La Tour | 2,272 | 11,742 | 2001 | CMA CGM | 3Q19 | 1Q20 | 15,300 | |||||||||
CMA CGM Manet | 2,272 | 11,742 | 2001 | CMA CGM | 3Q19 | 1Q20 | 15,300 | |||||||||
CMA CGM Matisse | 2,262 | 11,676 | 1999 | CMA CGM | 3Q19 | 1Q20 | 15,300 | |||||||||
CMA CGM Utrillo | 2,262 | 11,676 | 1999 | CMA CGM | 3Q19 | 1Q20 | 15,300 | |||||||||
GSL Keta | 2,207 | 11,731 | 2003 | ANL | 2Q19 | 3Q19 | 8,450 | |||||||||
GSL Julie | 2,207 | 11,731 | 2002 | CMA CGM | 1Q19 | 1Q19(9) | 7,800(9) | |||||||||
Kumasi | 2,207 | 11,731 | 2002 | CMA CGM | 4Q19 | 1Q21(10) | 9,800(10) | |||||||||
Marie Delmas | 2,207 | 11,731 | 2002 | CMA CGM | 4Q19 | 1Q21(10) | 9,800(10) | |||||||||
- Modern design, high reefer capacity, fuel efficient vessels.
- Rate increased to
$13,000 per day fromJanuary 26, 2019 . - Rate increases to
$12,400 per day fromApril 21, 2019 and to$18,000 per day fromSeptember 21, 2019 . - Thereafter, five years to
CMA CGM at$25,910 per day. - Thereafter, option for four years at
$20,000 per day, callable by us. - Extended after
December 31, 2018 at$11,500 per day toJuly 17, 2019 plus or minus 30 days. - Rate increases to
$11,500 per day fromAugust 15, 2019 . - Extended after
December 31, 2018 at$8,500 per day toAugust 17, 2020 plus or minus 30 days. - Rate
$7,800 per day and, agreed afterDecember 31, 2018 ,$7,200 per day fromMarch 16, 2019 to betweenAugust 16, 2019 andOctober 16, 2019 , at charterer’s option, with an option in favour of charterer to extend fromOctober 16, 2019 at$8,500 per day for six months plus or minus 30 days. - Option at
$9,800 per day toDecember 31, 2020 plus or minus 90 days, callable by us. - To be renamed as M/V Olivia I effective
March 19, 2019 . - These vessels’ capacity is targeted to be upgraded to 8,600 TEU (subject class approval).
Conference Call and Webcast
(1) Dial-in: (877) 445-2556 or (908) 982-4670; Passcode: 5749817
Please dial in at least 10 minutes prior to
(2) Live Internet webcast and slide presentation: http://www.globalshiplease.com
If you are unable to participate at this time, a replay of the call will be available through
Annual Report on Form 20-F
The Company’s Annual Report for 2017 is on file with the
About
The average remaining term of the charters at
Reconciliation of Non-U.S. GAAP Financial Measures
A. Adjusted EBITDA
Adjusted EBITDA represents net loss before interest income and expense including amortization of deferred finance costs, earnings allocated to preferred shares, income taxes, depreciation, amortization of drydocking costs and impairment. Adjusted EBITDA is a non-US GAAP quantitative measure used to assist in the assessment of the Company's ability to generate cash from its operations. We believe that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. Adjusted EBITDA is not defined in US GAAP and should not be considered to be an alternate to Net income or any other financial metric required by such accounting principles. Our use of Adjusted EBITDA may vary from the use of similarly titled measures by others in our industry.
ADJUSTED EBITDA - UNAUDITED
(thousands of U.S. dollars) |
Three | Three | |||||||||
months | months | Year | Year | |||||||
ended | ended | ended | ended | |||||||
Dec 31, | Dec 31, | Dec 31, | Dec 31, | |||||||
2018 | 2017 | 2018 | 2017 | |||||||
Net (loss) available to common shareholders | (72,503 | ) | (99,824 | ) | (60,426 | ) | (77,328 | ) | ||
Adjust: | Depreciation and amortization | 10,752 | 9,394 | 35,455 | 37,981 | |||||
Impairment | 71,834 | 87,624 | 71,834 | 87,624 | ||||||
Interest income | (441 | ) | (154 | ) | (1,425 | ) | (489 | ) | ||
Interest expense | 16,174 | 27,027 | 48,686 | 59,413 | ||||||
Earnings allocated to preferred shares | 765 | 765 | 3,062 | 3,062 | ||||||
Income taxes | (4 | ) | 9 | 55 | 40 | |||||
Adjusted EBITDA | 26,577 | 24,841 | 97,241 | 110,303 | ||||||
B. Normalized net income
Normalized net income represents net loss adjusted for the premium paid on redemption of notes, together with the related write-off of deferred financing charges and original issue discount, for impairment charges and the staff retention and severance costs associated with the Poseidon Transaction. Normalized net loss is a non-GAAP quantitative measure which we believe will assist investors and analysts who often adjust reported net loss for items that do not affect operating performance or operating cash generated. Normalized net income is not defined in US GAAP and should not be considered to be an alternate to net income or any other financial metric required by such accounting principles. Our use of Normalized net income may vary from the use of similarly titled measures by others in our industry.
NORMALIZED NET INCOME - UNAUDITED | |||
(thousands of U.S. dollars) |
Three | Three | ||||||||
months | months | Year | Year | ||||||
ended | ended | Ended | ended | ||||||
Dec 31, | Dec 31, | Dec 31, | Dec 31, | ||||||
2018 | 2017 | 2018 | 2017 | ||||||
Net (loss) available to common shareholders | (72,503 | ) | (99,824 | ) | (60,426 | ) | (77,328 | ) | |
Adjust: | Impairment charges | 71,834 | 87,624 | 71,834 | 87,624 | ||||
Staff retention and severance costs associated with the Poseidon transaction | 1,967 | --- | 1,967 | --- | |||||
Premium paid on redemption of 2022 Notes | 400 | --- | 400 | --- | |||||
Premium paid on redemption of 2019 Notes | --- | 8,657 | --- | 9,047 | |||||
Accelerated write-off of deferred financing charges related to 2019 Notes | --- | 4,310 | --- | 4,371 | |||||
Accelerated write-off of original issue discount related to 2019 notes | --- | 1,423 | --- | 1,492 | |||||
Normalized net income | 1,698 | 2,190 | 13,775 | 25,206 | |||||
Safe Harbor Statement
This communication contains forward-looking statements. Forward-looking statements provide
The risks and uncertainties include, but are not limited to:
- future operating or financial results;
- expectations regarding the future growth of the container shipping industry, including the rates of annual demand and supply growth;
- the financial condition of our charterers, particularly
CMA CGM , our principal charterer and main source of operating revenue, and their ability to pay charterhire in accordance with the charters; - Global Ship Lease’s financial condition and liquidity, including its level of indebtedness or ability to obtain additional financing to fund capital expenditures, vessel acquisitions and other general corporate purposes;
- Global Ship Lease’s ability to meet its financial covenants and repay its credit facilities;
- Global Ship Lease’s expectations relating to dividend payments and forecasts of its ability to make such payments including the availability of cash and the impact of constraints under its credit facility;
- risks relating to the acquisition of
Poseidon Containers and Global Ship Lease’s ability to realize the anticipated benefits of the acquisition; - future acquisitions, business strategy and expected capital spending;
- operating expenses, availability of crew, number of off-hire days, drydocking and survey requirements and insurance costs;
- general market conditions and shipping industry trends, including charter rates and factors affecting supply and demand;
- assumptions regarding interest rates and inflation;
- changes in the rate of growth of global and various regional economies;
- risks incidental to 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 its capital base;
- Global Ship Lease’s expectations about the availability of ships to purchase, the time that it may take to construct new ships, or the useful lives of its ships;
- Global Ship Lease’s continued ability to enter into or renew long-term, fixed-rate charters or other vessel employment arrangements;
- the continued performance of existing long-term, fixed-rate time charters;
- Global Ship Lease’s ability to capitalize on its management’s and board of directors’ relationships and reputations in the containership industry to its advantage;
- changes in governmental and classification societies’ rules and regulations or actions taken by regulatory authorities;
- expectations about the availability of insurance on commercially reasonable terms;
- unanticipated changes in laws and regulations including taxation;
- potential liability from future litigation.
Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements.
Global Ship Lease, Inc. Interim Unaudited ConsolidatedStatements of Income (Expressed in thousands of U.S. dollars) |
|||||||||||||||
Three months ended December 31, |
Year ended December 31, |
||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
OPERATING REVENUES | |||||||||||||||
Time charter revenue | 16,667 | 7,078 | 30,890 | 35,334 | |||||||||||
Time charter revenue - related party | 33,354 | 30,849 | 126,207 | 123,944 | |||||||||||
50,021 | 37,927 | 157,097 | 159,278 | ||||||||||||
OPERATING EXPENSES: | |||||||||||||||
Vessel operating expenses | 17,170 | 10,959 | 47,584 | 41,098 | |||||||||||
Vessel operating expenses - related parties | 938 | 400 | 1,689 | 1,599 | |||||||||||
Time charter and voyage expenses | 739 | 276 | 1,352 | 962 | |||||||||||
Time charter and voyage expenses - related party | 222 | — | 222 | — | |||||||||||
Depreciation and amortization | 10,752 | 9,394 | 35,455 | 37,981 | |||||||||||
Impairment of vessels | 71,834 | 87,624 | 71,834 | 87,624 | |||||||||||
General and administrative expenses | 4,571 | 1,452 | 9,221 | 5,367 | |||||||||||
Operating loss | (56,205 | ) | (72,178 | ) | (10,260 | ) | (15,353 | ) | |||||||
NON OPERATING INCOME/(EXPENSE) | |||||||||||||||
Interest income | 441 | 154 | 1,425 | 489 | |||||||||||
Interest and other financial expenses | (16,174 | ) | (27,027 | ) | (48,686 | ) | (59,413 | ) | |||||||
Other income, net | 196 | 1 | 212 | 51 | |||||||||||
Total non operating expense | (15,537 | ) | (26,872 | ) | (47,049 | ) | (58,873 | ) | |||||||
Loss before income taxes | (71,742 | ) | (99,050 | ) | (57,309 | ) | (74,226 | ) | |||||||
Income taxes | 4 | (9 | ) | (55 | ) | (40 | ) | ||||||||
Net Loss | (71,738 | ) | (99,059 | ) | (57,364 | ) | (74,266 | ) | |||||||
Earnings allocated to Series B Preferred shares | (765 | ) | (765 | ) | (3,062 | ) | (3,062 | ) | |||||||
Net Loss available to Common Shareholders | (72,503 | ) | (99,824 | ) | (60,426 | ) | (77,328 | ) | |||||||
Earnings/(Loss) per Share | |||||||||||||||
Weighted average number of Class A common shares outstanding | |||||||||||||||
Basic and diluted (including RSU’s without service conditions) | 60,907,958 | 47,976,722 | 52,115,118 | 47,975,889 | |||||||||||
Net Loss per Class A common share | |||||||||||||||
Basic and diluted (including RSU’s without service conditions) | (0.64 | ) | (2.08 | ) | (0.93 | ) | (1.61 | ) | |||||||
Weighted average number of Class B common shares outstanding | |||||||||||||||
Basic and diluted | 7,405,956 | 7,405,956 | 7,405,956 | 7,405,956 | |||||||||||
Net Loss per Class B common share | |||||||||||||||
Basic and diluted | nil | nil | nil | nil | |||||||||||
Global Ship Lease, Inc. Interim Unaudited ConsolidatedBalance Sheets (Expressed in thousands of U.S. dollars) |
||||||||
As of | ||||||||
December 31, 2018 |
December 31, 2017 |
|||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | 82,059 | 73,266 | ||||||
Restricted cash | 2,186 | — | ||||||
Accounts receivable, net | 1,927 | 72 | ||||||
Inventories | 5,769 | 742 | ||||||
Prepaid expenses and other current assets | 6,214 | 1,376 | ||||||
Due from related parties | 817 | 1,932 | ||||||
Total current assets | 98,972 | 77,388 | ||||||
NON-CURRENT ASSETS | ||||||||
Vessels in operation | 1,112,766 | 586,520 | ||||||
Other fixed assets | 5 | 10 | ||||||
Intangible assets - charter agreements | 5,400 | 700 | ||||||
Intangible assets - other | — | 7 | ||||||
Deferred charges, net | 9,569 | 11,259 | ||||||
Other non-current assets | 948 | — | ||||||
Restricted cash, net of current portion | 5,827 | — | ||||||
Total non-current assets | 1,134,515 | 598,496 | ||||||
TOTAL ASSETS | 1,233,487 | 675,884 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | 9,586 | 1,486 | ||||||
Accrued liabilities | 15,407 | 8,788 | ||||||
Current portion of long-term debt | 64,088 | 40,000 | ||||||
Deferred revenue | 3,118 | 2,178 | ||||||
Due to related parties | 3,317 | 2,813 | ||||||
Total current liabilities | 95,516 | 55,265 | ||||||
LONG-TERM LIABILITIES | ||||||||
Long-term debt, net of current portion and deferred financing costs | 813,130 | 358,515 | ||||||
Intangible liability - charter agreements | 8,470 | 10,482 | ||||||
Deferred tax liability | 9 | 17 | ||||||
Total non-current liabilities | 821,609 | 369,014 | ||||||
TOTAL LIABILITIES | 917,125 | 424,279 | ||||||
Commitments and Contingencies | — | — | ||||||
STOCKHOLDERS' EQUITY | ||||||||
Class A common stock-authorized 214,000,000 shares with a $0.01 par value 72,137,965 shares issued and outstanding (2017 – 47,609,734 shares) |
721 | 476 | ||||||
Class B common stock-authorized 20,000,000 shares with a $0.01 par value 7,405,956 issued and outstanding (2017 – 7,405,956 shares) |
74 | 74 | ||||||
Series B Preferred shares-authorized 16,100 shares with a $0.01 par value 14,000 shares issued and outstanding (2017 – 14,000 shares) |
— | — | ||||||
Series C Preferred shares - authorized 250,000 shares with a $0.01 par value 250,000 shares issued and outstanding (2017 - nil) |
3 | — | ||||||
Additional paid in capital | 511,683 | 386,748 | ||||||
Accumulated deficit | (196,119 | ) | (135,693 | ) | ||||
Total stockholders' equity | 316,362 | 251,605 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,233,487 | 675,884 |
Global Ship Lease, Inc. Interim Unaudited Consolidated Statements of Cash Flows (Expressed in thousands of U.S. dollars) |
|||||||||||
Three months ended December 31, |
Year ended December 31, |
||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Cash flows from operating activities: | |||||||||||
Net loss | (71,738 | ) | (99,059 | ) | (57,364 | ) | (74,266 | ) | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 10,752 | 9,394 | 35,455 | 37,981 | |||||||
Vessel impairment | 71,834 | 87,624 | 71,834 | 87,624 | |||||||
Amortization of deferred financing costs | 1,498 | 5,159 | 4,629 | 7,772 | |||||||
Amortization of original issue discount/premium on repurchase of notes | 605 | 1,640 | 1,207 | 2,523 | |||||||
Amortization of intangible liability/assets-charter agreements | 24 | (451 | ) | (1,305 | ) | (1,807 | ) | ||||
Share based compensation | (86 | ) | 272 | 50 | 272 | ||||||
Changes in operating assets and liabilities: | |||||||||||
Decrease (increase) in accounts receivable and other assets | 7,361 | 1,464 | 5,019 | (441 | ) | ||||||
Decrease (increase) in inventories | 331 | (113 | ) | (2,250 | ) | (188 | ) | ||||
(Decrease) increase in accounts payable and other liabilities | (15,252 | ) | 5,465 | (9,117 | ) | (3,030 | ) | ||||
(Increase) decrease in related parties' balances | (22 | ) | 465 | (625 | ) | 1,138 | |||||
Increase (decrease) in deferred revenue | 972 | (670 | ) | 214 | 238 | ||||||
Unrealized foreign exchange (gain) loss | (9 | ) | (4 | ) | (5 | ) | 2 | ||||
Net cash provided by operating activities | 6,270 | 11,186 | 47,742 | 57,818 | |||||||
Cash flows from investing activities: | |||||||||||
Cash paid for vessels | — | — | (11,436 | ) | — | ||||||
Net proceeds from sale of vessels | 14,504 | — | 14,504 | — | |||||||
Cash paid for vessel improvements | (89 | ) | (155 | ) | (239 | ) | (255 | ) | |||
Cash paid for other assets | — | — | — | (8 | ) | ||||||
Cash paid for drydockings | (532 | ) | — | (2,636 | ) | (4,632 | ) | ||||
Cash acquired in Poseidon Transaction, net of capitalized expenses | 24,037 | — | 24,037 |
— |
|||||||
Net cash provided by/(used in) investing activities | 37,920 | (155 | ) | 24,230 | (4,895 | ) | |||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of secured notes | — | 356,400 | — | 356,400 | |||||||
Repurchase of secured notes | (20,400 | ) | (346,287 | ) | (20,400 | ) | (365,788 | ) | |||
Proceeds from drawdown of credit facilities | — | 54,800 | 8,125 | 54,800 | |||||||
Repayment of credit facilities | (27,771 | ) | (54,800 | ) | (37,771 | ) | (63,575 | ) | |||
Deferred financing costs paid | (246 | ) | (12,675 | ) | (2,058 | ) | (12,675 | ) | |||
Series B Preferred Shares-dividends paid | (765 | ) | (765 | ) | (3,062 | ) | (3,062 | ) | |||
Net cash used in financing activities | (49,182 | ) | (3,327 | ) | (55,166 | ) | (33,900 | ) | |||
Net (decrease) increase in cash and cash equivalents and restricted cash | (4,992 | ) | 7,704 | 16,806 | 19,023 | ||||||
Cash and cash equivalents and restricted cash at beginning of the period | 95,064 | 65,562 | 73,266 | 54,243 | |||||||
Cash and cash equivalents and restricted cash at end of the period | 90,072 | 73,266 | 90,072 | 73,266 |
Investor and Media Contacts:
646-673-9701
or
212-477-8438
Source: Global Ship Lease, Inc.