INTERNATIONAL SHIPHOLDING CORP - FORM 8-K/A - EX-99.2 - EXHIBIT 99.2 - DBCH 12/31/10 PRO FORMA FINANCIALS - June 8, 2011

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EX-99.1 - EXHIBIT 99.1 - DBCH 12/31/10 AUDITED FINANCIALS - INTERNATIONAL SHIPHOLDING CORPexhibit991dbch123110fs.htm

Exhibit 99.2


UNAUDITED PRO FORMA FINANCIAL INFORMATION
 
 
The unaudited pro forma condensed combined balance sheet at December 31, 2010 gives effect to the acquisition of DBCH as if the acquisition had occurred on December 31, 2010.  The unaudited pro forma condensed combined statement of income for the year ended December 31, 2010 gives effect to the acquisition of DBCH as if the acquisition had occurred on January 1, 2010.

The unaudited pro forma financial information has been prepared by our management and is based on our historical financial statements and the assumptions and adjustments described herein and in the notes to the unaudited pro forma financial information below. The presentation of the unaudited pro forma financial information is prepared in conformity with Article 11 of Regulation S-X.

The historical financial information of the Company for the year ended December 31, 2010 has been derived from the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.  The historical financial information of DBCH (Target) for the year ended December 31, 2010 has been derived from the audited consolidated financial statements of DBCH and the accompanying notes, of which the audited consolidated financial statements of DBCH are included as Exhibit 99.1 in this current report on Form 8-K/A.

We based the pro forma adjustments on available information and on assumptions that we believe are reasonable under the circumstances.  The unaudited pro forma financial information is presented for informational purposes and is based on management’s estimates. The unaudited pro forma condensed combined statement of income for the year ended December 31, 2010 does not purport to represent what our results of operations actually would have been if the transactions set forth above had occurred on the dates indicated or what our results of operations will be for future periods.

The foregoing financial information should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 and the quarter ended March 31, 2011 report on Form 10-Q.



 
 

 
 
 

INTERNATIONAL SHIPHOLDING CORPORATION
UNAUDITED PRO FORMA CONDENSED COMBINED
STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 2010
(All Amounts in Thousands Except Share Data)
                   
         
 Subsidiary
    Pro Forma
 
 Pro Forma
 
Acquirer
1
Target
  
Transfers
2
  Adjustments
 
Combined
Revenues
 $ 290,049
  
 $ 25,315
  
 $     (12,658)
  
 $               -
  
 $      302,707
                   
Operating Expenses:
                  
         Voyage Expenses
    209,347
  
      4,382
  
          (2,191)
  
            2,576
 4
         214,114
         Vessel Depreciation
      17,929
  
      2,543
  
          (1,272)
  
               805
 4
           20,006
         Impairment Loss
      25,430
  
            -
  
                  -
  
                  -
  
           25,430
                   
Gross Voyage Profit
      37,343
  
    18,390
  
          (9,195)
  
           (3,381)
  
           43,157
                   
Administrative and General Expenses
      21,202
  
         548
  
             (274)
  
                  -
  
           21,476
Gain on Sale of Other Assets
           (42)
  
            -
  
                  -
  
                  -
  
                (42)
                   
Operating Income (Loss)
      16,183
  
    17,842
  
          (8,921)
  
           (3,381)
  
           21,723
                   
Interest and Other:
                  
          Interest Expense
        7,157
  
         962
  
             (481)
  
                  -
  
             7,638
          Derivative Loss
           426
  
            -
  
                  -
  
                  -
  
                426
          Gain on Sale of Investment
         (213)
  
            -
  
                  -
  
                  -
  
              (213)
          Other Income from Vessel Financing
      (2,335)
  
            -
  
                  -
  
                  -
  
           (2,335)
          Investment Income
      (1,778)
  
         (24)
  
                 12
  
                  -
  
           (1,790)
          Foreign Exchange Loss
        8,196
  
            -
  
                  -
  
                  -
  
             8,196
 
      11,453
  
         938
  
             (469)
  
                  -
  
           11,922
         
                  -
  
                  -
  
                  -
                   
Income Before (Benefit) Provision for Income Taxes and
                
      Equity in Net Income of Unconsolidated Entities
        4,730
  
    16,904
  
          (8,452)
  
           (3,381)
  
             9,801
     
 
            
(Benefit) Provision for Income Taxes:
 
  
 
            
         Current
           692
  
            -
  
                  -
  
                  -
  
                692
         Deferred
      (1,982)
  
            -
  
                  -
  
                  -
  
           (1,982)
 
      (1,290)
  
            -
  
                  -
  
                  -
  
           (1,290)
     
 
            
Equity in Net Income of Unconsolidated
                  
    Entities (Net of Applicable Taxes)
        9,282
  
            -
  
                  -
  
         (10,791)
 3
           (1,509)
                   
Income from Continuing Operations
      15,302
  
    16,904
  
          (8,452)
  
         (14,172)
  
             9,582
                   
Income from Discontinued Operations
                  
       Income from Discontinued Operations
              -
  
      2,179
  5
          (1,090)
  
                  -
  
             1,090
       Gain on Sale of Vessel
              -
  
      2,498
  
          (1,249)
  
                  -
  
             1,249
   Net Income from Discontinued Operations
              -
  
      4,677
  
          (2,339)
  
                  -
  
             2,339
                   
                   
                   
Net Income
 $   15,302
  
 $ 21,581
  
 $     (10,791)
  
 $      (14,172)
  
 $        11,921
                   
Basic and Diluted Earnings Per Common Share:
                  
                   
           Continuing Operations
 $       2.14
  
 $         -
  
 $               -
  
 $               -
  
 $            1.34
           Discontinued Operations
              -
  
            -
  
                  -
  
                  -
  
0.33
Basic Earnings Per Common Share:
 $       2.14
  
 $         -
  
 $               -
  
 $               -
  
 $            1.67
                   
                   
           Continuing Operations
 $       2.12
  
 $         -
  
 $               -
  
 $               -
  
 $            1.33
           Discontinued Operations
              -
  
            -
  
                  -
  
                  -
  
0.32
Diluted Earnings Per Common Share:
 $       2.12
  
 $         -
  
 $               -
  
 $               -
  
 $            1.65
                   
Weighted Average Shares of Common Stock Outstanding:
                
         Basic
7,158,439
  
            -
  
                  -
  
                  -
  
      7,158,439
         Diluted
7,231,178
  
            -
  
                  -
  
                  -
  
      7,231,178
                   
Dividends Per Share
 $     1.625
  
 $         -
  
                  -
  
                  -
  
 $          1.625
                   
1 - Company Consolidated Statement of Income
                  
2 - To remove 50% of Target not included in future operations due to subsequent transfer of subsidiaries
3 - To remove 2010 Equity in Net Income of 50% ownership of DBCH
          
4 - To record depreciation and amortization on vessels and intangible at step-up fair value
    
5 - Target is not subject to taxes
                  




 
 
 

INTERNATIONAL SHIPHOLDING CORPORATION
UNAUDITED PRO FORMA CONDENSED COMBINED
BALANCE SHEETS
December 31, 2010
(All Amounts in Thousands)
                     
                     
           
 Subsidiary
  
 Pro Forma
  
 Pro Forma
ASSETS
  
Acquirer
1
Target
  
Transfers
2
Adjustments
  
Combined
                     
Current Assets:
                    
         Cash and Cash Equivalents
  
$24,158
  
    $7,134
  
($3,567)
  
$      -
  
      $27,725
         Marketable Securities
  
     11,527
  
             -
  
                    -
  
                    -
  
        11,527
         Accounts Receivable, Net of Allowance for Doubtful Accounts
                    
             of $311
                    
                        Traffic
  
       6,364
  
        834
  
             (417)
  
                    -
  
          6,781
                        Agents'
  
       1,555
  
             -
  
                    -
  
                    -
  
          1,555
                        Other
  
       8,555
  
             -
  
                    -
  
                    -
  
          8,555
         Federal Income Taxes Receivable
  
          242
  
             -
  
                    -
  
                    -
  
             242
         Net Investment in Direct Financing Leases
  
       5,596
  
             -
  
                    -
  
                    -
  
          5,596
         Other Current Assets
  
       2,513
  
        189
  
               (95)
  
            2,576
  3
          5,183
         Notes Receivable
  
       4,248
  
             -
  
                    -
  
                    -
  
          4,248
         Material and Supplies Inventory, at Lower of Cost or Market
  
       3,774
  
        261
  
             (131)
  
                    -
  
          3,904
Total Current Assets
  
     68,532
  
     8,418
  
($4,210)
  
            2,576
  
      $75,316
                     
Investment in Unconsolidated Entities
  
     27,261
  
             -
      
         (13,939)
  4
        13,322
                     
Net Investment in Direct Financing Leases
  
     50,102
  
             -
  
                    -
  
                    -
  
        50,102
                     
Vessels, Property, and Other Equipment, at Cost:
                    
         Vessels
  
   365,797
  
   73,000
  
        (36,500)
  
            5,800
  3
      408,097
         Leasehold Improvements
  
     26,128
  
             -
  
                    -
  
                    -
  
        26,128
         Construction in Progress
  
     78,355
  
   15,196
  
          (7,598)
  
                    -
  
        85,953
         Furniture and Equipment
  
       7,863
  
             -
  
                    -
  
                    -
  
          7,863
   
   478,143
  
   88,196
  
        (44,098)
  
            5,800
  
      528,041
Less -  Accumulated Depreciation
  
  (143,667)
  
  (19,004)
  
            9,502
  
            9,502
  
    (143,667)
   
   334,476
  
   69,192
  
        (34,596)
  
          15,302
  
      384,374
                     
Other Assets:
                    
         Deferred Charges, Net of Accumulated Amortization
  
     14,482
  
        477
  
             (238)
  
                    -
  
        14,721
              of $14,525
                    
         Intangible Assets, Net
  
               -
  
             -
  
                    -
  
            2,576
  3
          2,576
         Restricted Cash
  
               -
  
     9,088
  
          (4,544)
  
                    -
  
          4,544
         Due from Related Parties
  
       4,124
  
             -
  
                    -
  
                    -
  
          4,124
         Notes Receivable
  
     40,142
  
             -
  
                    -
  
                    -
  
        40,142
         Other
  
       5,004
  
             -
  
                    -
  
                    -
  
          5,004
   
     63,752
  
     9,565
  
          (4,782)
  
            2,576
  
        71,111
                     
Total Assets
  
$544,123
  
$87,175
  
      ($43,588)
  
$6,515
  
    $594,225
 
 
 
           
 Subsidiary
  
 Pro Forma
  
 Pro Forma
 
  
Acquirer
  
Target
  
Transfers
  
Adjustments
  
Combined
LIABILITIES AND STOCKHOLDERS' INVESTMENT
  
 
  
 
  
 
  
 
  
 
                     
Current Liabilities:
                    
         Current Maturities of Long-Term Debt
  
   $21,324
  
   $5,951
  
        ($2,976)
  
               $   -
  
      $24,299
         Accounts Payable and Accrued Liabilities
  
     32,114
  
     1,210
  
   (605)
  
            1,500
  5
        34,219
Total Current Liabilities
  
     53,438
  
     7,161
  
(3,581)
  
            1,500
  
        58,518
                     
Long-Term Debt, Less Current Maturities
  
   200,241
  
   52,996
  
        (26,498)
  
                    -
  
      226,739
                     
Other Long-Term Liabilities:
                    
         Lease Incentive Obligation
  
       7,022
  
             -
  
                    -
  
                    -
  
          7,022
         Other
  
     49,672
  
             -
  
                    -
  
                    -
  
        49,672
   
     56,694
  
             -
  
                    -
  
                    -
  
        56,694
                     
                     
Stockholders' Investment:
                    
     Common Stock, $1.00 Par Value, 10,000,000 Shares Authorized
  
       8,564
  
             -
  
                    -
  
                    -
  
          8,564
     and 7,075,659 Shares Issued at December 31, 2010
                    
     Additional Paid-In Capital
  
     84,846
  
     3,202
  
          (1,601)
  
           (1,601)
  6
        84,846
     Retained Earnings
  
   183,541
  
   23,816
  
        (11,908)
  
            6,616
  6
      202,065
    Treasury Stock, 1,388,066 at cost at December 31, 2010
  
    (25,403)
  
             -
  
                    -
  
                    -
  
      (25,403)
     Accumulated Other Comprehensive Loss
  
    (17,798)
  
             -
  
                    -
  
                    -
  
      (17,798)
   
   233,750
  
   27,018
  
        (13,509)
  
            5,015
  
      252,274
                     
Total Liabilities and Stockholders' Investment
  
$544,123
  
$87,175
  
      ($43,588)
  
          $6,515
  
    $594,225
                     
1 - Company Consolidated Balance Sheet not including DBCH acquisition
                  
2 - To remove 50% of Target not included in future operations due to subsequent transfer of subsidiaries
          
3 - To record vessels and intangible at step-up fair value
                    
4 - To remove the Company's 50% ownership in DBCH
                    
5 - To record payable for the difference in the value of the two capesize vessels
                
6 - To remove Target equity balances and reflect Pro forma results
                    

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