Second Quarter and Year To Date Highlights
- Reported operating revenue of
- Reported net income available to common shareholders of
- Generated
- Agreed to multiple charter extensions and new charters:
- Charters for five 2,200 – 2,500 TEU feeder ships (Julie, Manet, Maira, Nikolas and Newyorker), to
Sea Consortium , Sea Lead and MSC, at rates between$6,600 and$8,000 per day, and with median redelivery periods between 4Q2020 and 1Q2021; - A short charter for one 5,100 TEU Panamax ship (Dolphin II), to Sea-Lead, at a rate of
$7,000 per day, and with median redelivery in 4Q2020; - A charter extension for one 5,900 TEU Post-Panamax ship (Dimitris Y), to ZIM, at a rate of
$14,500 per day, and with median redelivery in 2Q2022; - Charters for two 6,800 TEU Post-Panamax ships (GSL Christen and GSL Nicoletta), to Maersk and MSC, at rates expected to generate approximate Adjusted EBITDA of, respectively,
$0.9 million and$2.2 million , over the median charter periods to 1Q2021 and 3Q2021; - Charters for two ECO-9,100 TEU ships (Anthea Y and Maira XL), to COSCO and another leading liner operator, at rates expected to generate approximate Adjusted EBITDA of, respectively,
$2.1 million and$14.3 million , over the median charter periods to 4Q2020 and 2Q2022.
- Disposed of two 1999-built, 2,200 TEU feeder ships (GSL
“While the timing and shape of global economic recovery remains hard to call, we see a number of reasons for cautious optimism. Following a sharp decline through much of the first half of the year, freight rates and charter rates have both rebounded in recent weeks, with that strength felt first by well-specified post-panamax vessels - particularly those with high reefer capacity, like those in our fleet - just as we saw during the market recovery in 2019. As a result, idle containership capacity has fallen significantly, from a high of 11.7% in Q2 to 6.6% by the end of July, while the re-opening of ship recycling facilities is allowing marginal tonnage to be deleted from the global fleet. Encouragingly, our customers in the liner industry have demonstrated impressive price and capacity discipline, maintaining and even expanding their margins against a challenging macroeconomic backdrop. In an important distinction from prior downturns, the eventual post-COVID-19 demand recovery is set to take place against a supply scenario marked by a tiny orderbook - particularly in the size segments in which we operate. With our well-specified, low slot cost, high reefer capacity containerships in structurally undersupplied segments,
SELECTED FINANCIAL DATA – UNAUDITED
(thousands of
Three months ended |
Three months ended |
Six months ended |
Six months ended |
|
2020 |
2019 |
2020 |
2019 |
|
Operating Revenue (1) | 71,376 | 63,087 | 142,323 | 127,601 |
Operating Income | 29,682 | 26,727 | 50,078 | 55,523 |
Net Income (2) | 12,605 | 8,368 | 13,226 | 17,991 |
Adjusted EBITDA (3) | 41,800 | 38,371 | 81,350 | 78,469 |
Normalized Net Income (3) | 13,517 | 8,368 | 23,994 | 17,991 |
(1) Operating Revenue is net of address commissions which represents a discount provided directly to a charterer based on a fixed percentage of the agreed upon charter rate. Brokerage commissions are included in “Time charter and voyage expenses”.
(2) Net Income available to common shareholders.
(3) Adjusted EBITDA and Normalized Net Income are non-US Generally Accepted Accounting Principles (“US GAAP”) financial measures, as explained further in this press release, and are considered by
Revenue and Utilization
The Company generated revenue from fixed-rate, mainly long-term time-charters of
For the six months ended
The table below shows fleet utilization for the three and six month periods ended
Three months ended | Six months ended | Year ended | ||||||||||||||||
Days | 2020 | 2019 | 2020 | 2019 | 2019 | 2018 | 2017 | 2016 | ||||||||||
Ownership days | 4,095 | 3,492 | 8,111 | 6,912 | 14,326 | 7,675 | 6,570 | 6,588 | ||||||||||
Planned offhire - dry-dockings | (210 | ) | (174 | ) | (434 | ) | (174 | ) | (537 | ) | (34 | ) | (62 | ) | (100 | ) | ||
Unplanned offhire | (20 | ) | (19 | ) | (59 | ) | (24 | ) | (105 | ) | (17 | ) | (40 | ) | (3 | ) | ||
Idle time | (194 | ) | (18 | ) | (250 | ) | (18 | ) | (164 | ) | (47 | ) | 0 | 0 | ||||
Operating days | 3,671 | 3,281 | 7,368 | 6,696 | 13,520 | 7,577 | 6,468 | 6,485 | ||||||||||
Utilization | 89.6 | % | 94.0 | % | 90.8 | % | 96.9 | % | 94.4 | % | 98.7 | % | 98.4 | % | 98.4 | % |
Three dry-dockings were in progress as of
Vessel Operating Expenses
Vessel operating expenses, which primarily include costs of crew, lubricating oil, repairs, maintenance, insurance and technical management fees, were up 16.3% at
For the six months ended
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
For the six months ended
Depreciation and Amortization
Depreciation and amortization for the three-month period ended
Depreciation for the six months ended
Vessel impairment losses
Two 1999-built, 2,200 TEU feeder ships, GSL
General and Administrative Expenses
General and administrative expenses were
For the six months ended
Adjusted EBITDA
As a result of the above, Adjusted EBITDA was
Adjusted EBITDA for the six months ended
Interest Expense and Interest Income
Debt at
Debt at
Interest and other finance expenses for the three months ended
For the six months ended
Interest income for the three months ended
Interest income for the six months ended
Other (Expenses)/Income, Net
Other (expenses)/income, net is mainly comprised of gains/losses in bunkers following deliveries and redeliveries of ships from charterers and passenger income. Other expenses, net was
Other expenses, net was
Taxation
Taxation for the three months ended
Taxation for the six months ended
Earnings Allocated to Preferred Shares
Our Series B Cumulative Redeemable Perpetual Preferred Shares (the “Series B Preferred Shares”) carry a coupon of 8.75%, the cost of which for the three months ended
Net Income Available to Common Shareholders
Net income available to common shareholders for the three months ended
Net income available to common shareholders was
Normalized net income for the three months ended
Fleet
The following table provides information about the on-the-water fleet of 43 ships. GSL
Vessel Name | Capacity in TEUs |
Lightweight (tons) |
Year Built |
Charterer | Earliest Charter Expiry Date |
Latest Charter Expiry Date |
Daily Charter Rate $ |
CMA CGM Thalassa | 11,040 | 38,577 | 2008 | 4Q25 | 1Q26 | 47,200 | |
UASC Al Khor(1) | 9,115 | 31,764 | 2015 | Hapag-Lloyd | 1Q22 | 2Q22 | 34,000 |
Anthea Y(1) | 9,115 | 31,890 | 2015 | COSCO (2) | 3Q20 | 4Q20 | Confidential (2) |
Maira XL(1) | 9,115 | 31,820 | 2015 | Confidential (3) | 2Q22 | 3Q22 | Confidential (3) |
MSC |
8,603 | 34,325 | 2005 | MSC | 2Q24 | 3Q24 | Confidential (4) |
MSC |
8,603 | 34,305 | 2004 | MSC | 2Q24 | 3Q24 | Confidential (4) |
GSL Ningbo | 8,603 | 34,340 | 2004 | Maersk | 3Q20 | 4Q20 | 18,000 |
GSL Eleni | 7,847 | 29,261 | 2004 | Maersk | 3Q24 | 4Q24 (5) | Confidential (5) |
GSL Kalliopi | 7,847 | 29,105 | 2004 | Maersk | 4Q22 | 4Q24 (5) | Confidential (5) |
GSL Grania | 7,847 | 29,190 | 2004 | Maersk | 4Q22 | 4Q24 (5) | Confidential (5) |
Mary(1) | 6,927 | 23,424 | 2013 | 3Q23 | 4Q23 | 25,910 | |
Kristina(1) | 6,927 | 23,421 | 2013 | 2Q24 | 3Q24 | 25,910 | |
Katherine (1) | 6,927 | 23,403 | 2013 | 1Q24 | 2Q24 | 25,910 | |
Alexandra (1) | 6,927 | 23,348 | 2013 | 1Q24 | 2Q24 | 25,910 | |
Alexis (1) | 6,882 | 23,919 | 2015 | 1Q24 | 2Q24 | 25,910 | |
Olivia I (1) | 6,882 | 23,864 | 2015 | 1Q24 | 2Q24 | 25,910 | |
CMA CGM Berlioz | 6,621 | 26,776 | 2001 | 2Q21 | 4Q21 | 34,000 | |
Agios Dimitrios | 6,572 | 24,746 | 2011 | MSC | 4Q23 | 1Q24 | 20,000 |
GSL Christen | 6,840 | 27,954 | 2002 | Maersk (6) | 3Q20 | 1Q21 | Confidential (6) |
GSL Nicoletta | 6,840 | 28,070 | 2002 | MSC (6) | 2Q21 | 3Q21 | Confidential (6) |
GSL Vinia | 6,080 | 23,737 | 2004 | Confidential (7) | 3Q24 | 1Q25 | Confidential (7) |
GSL Christel Elisabeth | 6,080 | 23,745 | 2004 | Confidential (7) | 2Q24 | 1Q25 | Confidential (7) |
5,936 | 25,010 | 2000 | Maersk | 1Q22 | 3Q23 (8) | 12,500 (8) | |
Dimitris Y | 5,936 | 25,010 | 2000 | ZIM | 2Q22 | 2Q22 | 14,500 |
Ian H | 5,936 | 25,128 | 2000 | ZIM | 1Q21 | 2Q21 | 14,500 |
Dolphin II | 5,095 | 20,596 | 2007 | Sea Lead (9) | 4Q20 | 4Q20 | 7,000 (9) |
Orca I | 5,095 | 20,633 | 2006 | Maersk | 3Q20 (10) | 2Q21(10) | 9,000 (10) |
CMA CGM Alcazar | 5,089 | 20,087 | 2007 | 4Q20 | 2Q21 | 33,750 | |
CMA CGM Château d’If | 5,089 | 19,994 | 2007 | 4Q20 | 2Q21 | 33,750 | |
CMA CGM Jamaica | 4,298 | 17,272 | 2006 | 3Q22 | 1Q23 | 25,350 | |
CMA CGM Sambhar | 4,045 | 17,429 | 2006 | 3Q22 | 1Q23 | 25,350 | |
4,045 | 17,428 | 2006 | 3Q22 | 1Q23 | 25,350 | ||
GSL Valerie | 2,824 | 11,971 | 2005 | MSC | 3Q20 | 3Q20 | 9,000 |
Athena | 2,762 | 13,538 | 2003 | MSC | 1Q21 | 1Q21 | 9,000 |
Maira | 2,506 | 11,453 | 2000 | MSC | 4Q20 | 4Q20 | 8,000 |
Nikolas | 2,506 | 11,370 | 2000 | MSC | 4Q20 | 4Q20 | 8,000 |
Newyorker | 2,506 | 11,463 | 2001 | MSC | 1Q21 | 1Q21 | 9,000 (11) |
La Tour | 2,272 | 11,742 | 2001 | MSC | 4Q20 | 4Q20 | 8,800 |
Manet | 2,272 | 11,727 | 2001 | Sea Lead | 4Q20 | 4Q20 | 7,750 |
GSL Keta | 2,207 | 11,731 | 2003 | OOCL | 3Q20 | 4Q20 | 8,000 |
Julie | 2,207 | 11,731 | 2002 | 3Q20 | 3Q20 | 6,600 | |
Kumasi | 2,207 | 11,791 | 2002 | 4Q20 | 1Q21 | 9,800 | |
2,207 | 11,731 | 2002 | 4Q20 | 1Q21 | 9,800 | ||
(1) Modern design, high reefer capacity, fuel-efficient vessel. (2) Charter extended from |
|||||||
(3) Charter to |
|||||||
(4) Five-year charters which commenced 2Q2019. Approximately |
|||||||
(5) GSL Eleni delivered 2Q2019 and is chartered for five years; GSL Kalliopi (delivered 4Q2019) and GSL Grania (delivered 3Q2019) are chartered for three years plus two successive periods of one year at the option of the charterer. Approximately |
|||||||
(6) New Purchase One has been renamed GSL Christen; New Purchase Two has been renamed GSL Nicoletta. GSL Christen commenced a new charter with a Maersk in |
|||||||
(7) GSL Vinia and GSL Christel Elisabeth delivered in |
|||||||
(8) 12-month extension at charterer’s option callable in 2Q2022, at an increased rate of |
|||||||
(9) Charter to July with Feedertech at a rate of |
|||||||
(10) 12-24 month charter (which commenced in |
|||||||
(11) Charter for Newyorker extended to 1Q2021, at a rate of |
Conference Call and Webcast
(1) Dial-in: (877) 445-2556 or (908) 982-4670; Passcode: 5976748
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 2019 was filed with the
About
Global Ship Lease owns 43 containerships, ranging from 2,207 to 11,040 TEU, of which nine are fuel-efficient new-design wide-beam, with a total capacity of 245,280 TEU and an average age, weighted by TEU capacity, of 13.2 years as at June 30, 2020.
Adjusted to include all charters agreed, and ships acquired or divested, up to August 06, 2020, the average remaining term of the Company’s charters at June 30, 2020, to the mid-point of redelivery, including options under the Company’s control, was 2.3 years on a TEU-weighted basis. Contracted revenue on the same basis was $659.1 million. Contracted revenue was $743.6 million, including options under charterers’ control and with latest redelivery date, representing a weighted average remaining term of 2.6 years.
Reconciliation of Non-
A. Adjusted EBITDA
Adjusted EBITDA represents net income before interest income and expense, earnings allocated to preferred shares, income taxes, depreciation and amortization of drydocking costs and impairment losses. 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 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 on a forward-looking basis in certain instances. The Company has not provided a reconciliation of forward looking Adjusted EBITDA to the most directly comparable US GAAP measure because such US GAAP financial measure on a forward-looking basis is not available to the Company without unreasonable effort.
ADJUSTED EBITDA - UNAUDITED
(thousands of |
Three | Three | Six | Six | |||||||
months | months | months | months | |||||||
ended | ended | ended | ended | |||||||
2020 | 2019 | 2020 | 2019 | |||||||
Net income available to Common Shareholders | 12,605 | 8,368 | 13,226 | 17,991 | ||||||
Adjust: | Depreciation and amortization | 11,578 | 10,952 | 23,126 | 21,710 | |||||
Impairment charges | 912 | - | 8,497 | - | ||||||
Interest income | (193 | ) | (367 | ) | (831 | ) | (784 | ) | ||
Interest expense | 15,984 | 18,708 | 35,539 | 38,060 | ||||||
Income tax | 3 | (56 | ) | 3 | (40 | ) | ||||
Earnings allocated to preferred shares | 911 | 766 | 1,790 | 1,532 | ||||||
Adjusted EBITDA | 41,800 | 38,371 | 81,350 | 78,469 |
B. Normalized net income
Normalized net income represents net income adjusted for impairment charges and the premium paid on redemption of our 2022 Notes. Normalized net income 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
(thousands of |
Three | Three | Six | Six | |||
months | months | months | months | |||
ended | ended | ended | ended | |||
2020 | 2019 | 2020 | 2019 | |||
Net income available to Common Shareholders | 12,605 | 8,368 | 13,226 | 17,991 | ||
Adjust: | Impairment charges | 912 | - | 8,497 | - | |
Premium paid on redemption of 2022 Notes | - | - | 2,271 | - | ||
Normalized net income | 13,517 | 8,368 | 23,994 | 17,991 |
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 length and severity of the ongoing outbreak of the novel coronavirus (COVID-19) around the world and governmental responses thereto;
- the financial condition of our charterers, particularly
CMA CGM , our principal charterer and main source of operating revenue, and their ability to pay charterhire in accordance with the charters; - Global Ship Lease’s financial condition and liquidity, including its level of indebtedness or ability to obtain additional financing to fund capital expenditures, ship acquisitions and other general corporate purposes;
- Global Ship Lease’s ability to meet its financial covenants and repay its credit facilities;
- Global Ship Lease’s expectations relating to dividend payments and forecasts of its ability to make such payments including the availability of cash and the impact of constraints under its credit 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 ship operation, including piracy, discharge of pollutants and ship accidents and damage including total or constructive total loss;
- estimated future capital expenditures needed to preserve its capital base;
- Global Ship Lease’s expectations about the availability of ships to purchase, the time that it may take to construct new ships, or the useful lives of its ships;
- Global Ship Lease’s continued ability to enter into or renew long-term, fixed-rate charters or other ship employment arrangements;
- the continued performance of existing long-term, fixed-rate time charters;
- Global Ship Lease’s ability to capitalize on its management’s and board of directors’ relationships and reputations in the containership industry to its advantage;
- changes in governmental and classification societies’ rules and regulations or actions taken by regulatory authorities;
- expectations about the availability of insurance on commercially reasonable terms;
- unanticipated changes in laws and regulations including taxation;
- potential liability from future litigation.
Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements.
Interim Unaudited Consolidated Balance Sheets
(Expressed in thousands of
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | 73,721 | $ | 138,024 | |||
Restricted cash | 9,750 | 3,909 | |||||
Accounts receivable, net | 3,390 | 2,350 | |||||
Inventories | 6,071 | 5,595 | |||||
Prepaid expenses and other current assets | 6,910 | 8,132 | |||||
Due from related parties | 7,244 | 3,860 | |||||
Assets held for sale | 7,096 | - | |||||
Total current assets | $ | 114,182 | $ | 161,870 | |||
NON - CURRENT ASSETS | |||||||
Vessels in operation | $ | 1,147,214 | $ | 1,155,586 | |||
Advances for vessels acquisitions and other additions | 10,073 | 10,791 | |||||
Intangible assets - charter agreements | 108 | 1,467 | |||||
Deferred charges, net | 17,679 | 16,408 | |||||
Restricted cash, net of current portion | 6,215 | 5,703 | |||||
Total non - current assets | 1,181,289 | 1,189,955 | |||||
TOTAL ASSETS | $ | 1,295,471 | $ | 1,351,825 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable | $ | 14,869 | $ | 9,052 | |||
Accrued liabilities | 13,851 | 22,916 | |||||
Current portion of long-term debt and deferred financing costs | 81,358 | 87,532 | |||||
Deferred revenue | 5,019 | 9,987 | |||||
Due to related parties | 33 | 109 | |||||
Total current liabilities | $ | 115,130 | $ | 129,596 | |||
LONG-TERM LIABILITIES | |||||||
Long - term debt, net of current portion and deferred financing costs | $ | 748,857 | $ | 809,357 | |||
Intangible liability-charter agreements | 5,466 | 6,470 | |||||
Total non - current liabilities | 754,323 | 815,827 | |||||
Total liabilities | $ | 869,453 | $ | 945,423 | |||
Commitments and Contingencies | |||||||
SHAREHOLDERS' EQUITY | |||||||
Class A common shares - authorized 214,000,000 shares with a 17,741,008 shares issued and outstanding (2019 – 17,556,738 shares) |
177 | 175 | |||||
Class B common shares - authorized 20,000,000 shares with a nil shares issued and outstanding (2019 – nil shares) |
- | - | |||||
Series B Preferred Shares - authorized 44,000 shares with a 16,655 shares issued and outstanding (2019 – 14,428 shares) |
- | - | |||||
Series C Preferred Shares - authorized 250,000 shares with a 250,000 shares issued and outstanding (2019 - 250,000 shares) |
3 | 3 | |||||
Additional paid in capital | 571,974 | 565,586 | |||||
Accumulated deficit | (146,136 | ) | (159,362 | ) | |||
Total shareholders' equity | 426,018 | 406,402 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,295,471 | $ | 1,351,825 |
Interim Unaudited Consolidated Statements of Operations
(Expressed in thousands of
Three months ended |
Six months ended |
||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
OPERATING REVENUES | |||||||||||||||
Time charter revenue (includes related party revenues of and 2020 and 2019, respectively, and the six month periods ended |
$ | 71,376 | $ | 63,087 | $ | 142,323 | $ | 127,601 | |||||||
OPERATING EXPENSES: | |||||||||||||||
Vessel operating expenses (includes related party vessel operating expenses of periods ended and and 2019, respectively) |
24,170 | 20,810 | 49,682 | 41,765 | |||||||||||
Time charter and voyage expenses (includes related party time charter and voyage expenses of three month periods ended and 30, 2020 and 2019, respectively) |
2,712 | 2,084 | 6,181 | 3,635 | |||||||||||
Depreciation and amortization | 11,578 | 10,952 | 23,126 | 21,710 | |||||||||||
Vessel impairment losses | 912 | - | 8,497 | - | |||||||||||
General and administrative expenses | 2,322 | 2,514 | 4,759 | 4,968 | |||||||||||
Operating Income | 29,682 | 26,727 | 50,078 | 55,523 | |||||||||||
NON OPERATING INCOME/(EXPENSES) | |||||||||||||||
Interest income | 193 | 367 | 831 | 784 | |||||||||||
Interest and other finance expenses including premium on 2022 Notes | (15,984 | ) | (18,708 | ) | (35,539 | ) | (38,060 | ) | |||||||
Other (expenses) / income, net | (372 | ) | 692 | (351 | ) | 1,236 | |||||||||
Total non operating expenses | (16,163 | ) | (17,649 | ) | (35,059 | ) | (36,040 | ) | |||||||
Income before income taxes | 13,519 | 9,078 | 15,019 | 19,483 | |||||||||||
Income taxes | (3 | ) | 56 | (3 | ) | 40 | |||||||||
Net Income | 13,516 | 9,134 | 15,016 | 19,523 | |||||||||||
Earnings allocated to Series B Preferred Shares | (911 | ) | (766 | ) | (1,790 | ) | (1,532 | ) | |||||||
Net Income available to Common Shareholders | $ | 12,605 | $ | 8,368 | $ | 13,226 | $ | 17,991 | |||||||
Earnings per Share | |||||||||||||||
Weighted average number of Class A common shares outstanding | |||||||||||||||
Basic | 17,708,609 | 9,942,950 | 17,632,674 | 9,937,836 | |||||||||||
Diluted | 17,806,742 | 9,964,607 | 17,730,628 | 10,012,442 | |||||||||||
Net Earnings per Class A common share | $ | ||||||||||||||
Basic | 0.42 | 0.37 | 0.44 | 0.79 | |||||||||||
Diluted | 0.42 | 0.36 | 0.44 | 0.78 |
Interim Unaudited Consolidated Statements of Cash Flows
(Expressed in thousands of
Three months ended |
Six months ended |
||||||||||||||||||
2020 | 2019 | 2020 |
2019 | ||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||
Net income | $ | 13,516 | $ | 9,134 | $ | 15,016 | $ | 19,523 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||
Depreciation and amortization | $ | 11,578 | $ | 10,952 | $ | 23,126 | $ | 21,710 | |||||||||||
Vessel impairment losses | 912 | - | 8,497 | - | |||||||||||||||
Amortization of deferred financing costs | 994 | 744 | 1,921 | 1,489 | |||||||||||||||
Amortization of original issue discount/premium on repurchase of notes | 143 | 203 | 2,282 | 405 | |||||||||||||||
Amortization of intangible liability/asset-charter agreements | (124 | ) | 479 | 355 | 947 | ||||||||||||||
Share based compensation | 853 | 429 | 1,282 | 858 | |||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||
Decrease/(increase) in accounts receivable and other assets | $ | 390 | $ | (1,652 | ) | $ | 182 | $ | (1,746 | ) | |||||||||
Increase in inventories | (80 | ) | (636 | ) | (476 | ) | (194 | ) | |||||||||||
(Decrease)/increase in accounts payable and other liabilities | (11,749 | ) | (2,930 | ) | (5,154 | ) | 789 | ||||||||||||
Decrease in related parties' balances, net | (1,526 | ) | (4,329 | ) | (3,460 | ) | (6,367 | ) | |||||||||||
Decrease in deferred revenue | (1,659 | ) | (307 | ) | (4,968 | ) | (788 | ) | |||||||||||
Unrealized foreign exchange loss | 1 | 14 | 1 | 10 | |||||||||||||||
Net cash provided by operating activities | $ | 13,249 | $ | 12,101 | $ | 38,604 | $ | 36,636 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Acquisition of vessels | $ | - | $ | (18,496 | ) | $ | (23,060 | ) | $ | (18,496 | ) | ||||||||
Cash paid for vessel expenditure | (277 | ) | (6,139 | ) | (1,385 | ) | (6,776 | ) | |||||||||||
Advances for vessel acquisitions and other additions | (1,079 | ) | - | (1,279 | ) | - | |||||||||||||
Cash paid for drydockings | (3,117 | ) | (646 | ) | (7,189 | ) | (696 | ) | |||||||||||
Advances from sale of vessels | 4,119 | - | 4,119 | - | |||||||||||||||
Net cash used in investing activities | $ | (354 | ) | $ | (25,281 | ) | $ | (28,794 | ) | $ | (25,968 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||||||
Proceeds from issuance of 2024 Notes | $ | - | $ | - | $ | 19,193 | $ | - | |||||||||||
Repurchase of 2022 Notes, including premium | (625 | ) | - | (57,822 | ) | - | |||||||||||||
Proceeds from drawdown of credit facilities | - | 13,000 | 47,000 | 13,000 | |||||||||||||||
Repayment of credit facilities | (20,460 | ) | (20,320 | ) | (33,912 | ) | (26,546 | ) | |||||||||||
Repayment of refinanced debt | - | - | (44,366 | ) | - | ||||||||||||||
Deferred financing costs paid | (89 | ) | (322 | ) | (969 | ) | (322 | ) | |||||||||||
Proceeds from offering of Class A common shares, net of offering costs | (37 | ) | - | (76 | ) | - | |||||||||||||
Proceeds from offering of Series B preferred shares, net of offering costs | 1,179 | - | 4,982 | - | |||||||||||||||
Series B Preferred Shares-dividends paid | (911 | ) | (766 | ) | (1,790 | ) | (1,532 | ) | |||||||||||
Net cash used in financing activities | $ | (20,943 | ) | $ | (8,408 | ) | $ | (67,760 | ) | $ | (15,400 | ) | |||||||
Decrease in cash and cash equivalents and restricted cash | (8,048 | ) | (21,588 | ) | (57,950 | ) | (4,732 | ) | |||||||||||
Cash and cash equivalents and restricted cash at beginning of the period | 97,734 | 106,928 | 147,636 | 90,072 | |||||||||||||||
Cash and cash equivalents and restricted cash at end of the period | $ | 89,686 | $ | 85,340 | $ | 89,686 | $ | 85,340 | |||||||||||
Supplementary Cash Flow Information: | |||||||||||||||||||
Cash paid for interest | 21,909 | 25,688 | 33,098 | 34,895 | |||||||||||||||
Non-cash Investing activities: | |||||||||||||||||||
Unpaid drydocking expenses | 482 | - | 482 | - | |||||||||||||||
Unpaid vessel additions | 2,823 | - | 2,823 | - |
Investor and Media Contacts:
646-673-9701
or
212-477-8438
Source: Global Ship Lease, Inc.