Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - APRIL 25, 2012 - INTERNATIONAL SHIPHOLDING CORP | form8k4252012.htm |
Exhibit 99.1
INTERNATIONAL SHIPHOLDING CORPORATION REPORTS FIRST QUARTER 2012 RESULTS
DECLARES FIRST QUARTER DIVIDEND OF $0.25 PER SHARE
Mobile, Alabama, April 25, 2012 – International Shipholding Corporation (NYSE: ISH) today announced the financial results for the quarter ended March 31, 2012.
First Quarter 2012 Highlights
|
·
|
Reported net income of $7.9 million for the three months ended March 31, 2012
|
|
·
|
Generated a reportable gain of $3.8 million from transaction involving the sales of two International Flag Pure Car Truck Carriers
|
|
·
|
The International Flag Pure Car Truck Carrier sales and a sale and leaseback of a United States Flag Pure Car Truck Carrier generated cash proceeds of $132.1 million enabling the company to pay down $90.6 million in debt
|
|
·
|
Declared a first quarter dividend of $0.25 per share payable on June 1, 2012 to shareholders of record as of May 16, 2012
|
Net Income
The Company reported net income of $7.9 million for the three months ended March 31, 2012, which included a gain on the sale of two International Flag Pure Car Truck Carriers of $3.8 million. For the comparable three months ended March 31, 2011, the Company reported net income of $24.1 million, which included a gain of $18.7 million on the Dry Bulk transaction. Excluding the non-recurring transactions, net income for the first quarter of 2012 was $4.1 million as compared to $5.4 million for the comparable quarter in 2011.
Mr. Niels M. Johnsen, Chairman and Chief Executive Officer, stated: “During a time in which our fleet of diversified vessels continued to generate contract revenue, we enhanced our financial position by monetizing our investments in three Pure Car Truck Carriers. Importantly, one of these monetization transactions was a sale leaseback with early buy-out options that enables the Company to maintain commercial control of the vessel. Proceeds from these transactions provide us with significant capital to pay down debt and pursue accretive growth opportunities.”
“In addition, we continue to focus on providing attractive returns to our shareholders through a quarterly dividend. Consistent with our policy, our Board of Directors declared a first quarter dividend of $0.25 per share, increasing the cumulative declared payment to $6.25 per share since reinstituting our dividend policy in the fourth quarter of 2008.”
Operating Income
Operating income for the three months ended March 31, 2012, was $6.3 million. Excluding the gains from the sale of assets, operating income was $2.5 million in this first quarter of 2012 as compared to $4.1 for the comparable period in 2011. The Company’s gross voyage profit, which represents the operating results of its five reporting segments was $14.4 million compared to $15.3 million in the 2011 three month period. The comparable results by reporting segment are shown below:
International Rail Ferry
U.S. Flag Flag COA Service Other Totals
(all amounts in millions)
2012
Gross Voyage Profit $7.926 $6.159 $(.892) $.833 $.352 $14.378
Depreciation (2.565) (3.092) -- (.698) (.002) (6.357)
Gross Profit $5.361 $3.067 $(.892) $.135 $.350 $8.021
(After Depreciation)
2011
Gross Voyage Profit $9.018 $4.324 $(.079) $1.423 $.658 $15.344
Depreciation (2.509) (1.990) -- (.872) (.003) (5.374)
Gross Profit $6.509 $2.334 $(.079) $.551 $.655 $9.970
(After Depreciation)
Gross profit for the U. S Flag Time Charter segment was lower due to the expiration of the three operating contracts with the Military Sealift Command (MSC) during the quarter and lower supplemental cargo volumes. These were partially offset by the results of the multi-purpose ice strengthened vessel placed under contract to the MSC in late 2011. The International Flag Time Charter segment reported improved results primarily from the operation of its Dry Bulk vessels. The Contract of Affreightment segment reported a greater loss from lower tonnage carried in the quarter. The Rail Ferry segment results were negatively impacted by higher operating costs in the quarter. These costs are expected to come in line with prior year operating cost levels over the remainder of the year. The Company’s Other segment results, consisting mainly of chartering brokerage and agency services, were adversely impacted by work stoppage in Indonesia affecting a large chartering customer. As these operations return to normal, charter levels are expected to return to 2011 levels for the remainder of 2012.
Interest and Other
Interest expense for the three months ended March 31, 2012, increased from the comparable period in 2011. This was a result of financing collateralized by the Handysize vessels acquired during the first quarter of 2011 and the Handymax vessel delivered in the first quarter of 2012. During the three month period ended March 31, 2012, the Japanese Yen depreciated in relation to the U.S. Dollar from 76.92 to 82.82. This produced the $3.6 million foreign exchange gain reported in the quarter.
Unconsolidated Entities
The results from the Company’s investments in 50% or less owned ventures decreased in the three months ended March 31, 2012, when compared to the same period in 2011. The 2011 results reflect the investment in Dry Bulk which was purchased late in the first quarter of 2011.
Balance Sheet
The Company’s working capital at March 31, 2012, was approximately $24.4 million, an increase of $5.1 million from December 31, 2011. Cash and cash equivalents was approximately $34.2 million with the Company’s $30 million Line of Credit undrawn. During the quarter, the Company finalized its equity investment in the Handymax vessel with a payment of approximately $9 million. Additionally, the Company repaid its temporary line of credit draw of $9.5 million.
Dividend Declaration
The Company’s Board of Directors authorized the payment of a $0.25 dividend payable on June 1, 2012, for each share of common stock owned on the record date of May 16, 2012. All future dividend declarations and amounts remain subject to the discretion of International Shipholding Corporation’s Board of Directors.
Conference Call
In connection with this earnings release, management will host an earnings conference call on Thursday, April 26, 2012 at 10:00 AM ET. To participate in the conference call, please dial (888) 596-2569 (domestic) or (913) 312-0855 (international). Participants can reference the International Shipholding Corporation First Quarter 2012 Earnings Call or passcode 3269834. Please dial in approximately 5 minutes prior to the call.
The conference call will also be available via a live listen-only webcast and can be accessed through the Investor Relations section of the Company’s website, www.intship.com. Please allow extra time prior to the call to visit the Company’s website and download any software that may be needed to listen to the webcast.
A replay of the conference call will be available through May 3, 2012, at (877) 870-5176 (domestic) or (858) 384-5517 (international). The passcode for the replay is 3269834.
About International Shipholding
International Shipholding Corporation, through its subsidiaries, operates a diversified fleet of U.S. and International flag vessels that provide worldwide and domestic maritime transportation services to commercial and governmental customers primarily under medium to long-term charters and contracts. www.intship.com
Caution concerning forward-looking statements
This press release contains forward-looking statements within the meaning of the U.S. federal securities laws. These forward-looking statements are based on assumptions and opinions concerning a variety of known and unknown risks. Please refer to ISH’s Annual Report on form 10-K for the year ended December 31, 2011 as well as its future filings and reports filed with or furnished to the Securities and Exchange Commission for a description of the business environment in which ISH operates and the important factors, risks and uncertainties that may affect its business and financial results. If any assumptions or opinions prove materially incorrect, any forward-looking statements made on that basis may also prove to be materially incorrect. ISH is not under any obligation to (and expressly disclaims any such obligations to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
Contact:
The IGB Group
David Burke
(646) 673-9701
dburke@igbir.com
Leon Berman
(212) 477-8438
lberman@igbir.com
International Shipholding Corporation
Niels M. Johnsen, Chairman (212) 943-4141
Erik L. Johnsen, President (251) 243-9221
|
INTERNATIONAL SHIPHOLDING CORPORATION
|
||||||||
|
CONSOLIDATED STATEMENTS OF INCOME
|
||||||||
|
(All Amounts in Thousands Except Share Data)
|
||||||||
|
(Unaudited)
|
||||||||
|
Three Months ended March 31,
|
||||||||
|
2012
|
2011
|
|||||||
|
Revenues
|
$ | 65,204 | $ | 64,334 | ||||
|
Operating Expenses:
|
||||||||
|
Voyage Expenses
|
50,826 | 48,990 | ||||||
|
Vessel Depreciation
|
6,357 | 5,374 | ||||||
|
Administrative and General Expenses
|
5,508 | 5,829 | ||||||
|
Gain on Dry Bulk Transaction
|
- | (18,714 | ) | |||||
|
Gain on Sale of Other Assets
|
(3,799 | ) | - | |||||
|
Total Operating Expenses
|
58,892 | 41,479 | ||||||
|
Operating Income
|
6,312 | 22,855 | ||||||
|
Interest and Other:
|
||||||||
|
Interest Expense
|
2,727 | 2,290 | ||||||
|
Derivative Income
|
(149 | ) | (121 | ) | ||||
|
Gain on Sale of Investment
|
(42 | ) | - | |||||
|
Other Income from Vessel Financing
|
(622 | ) | (688 | ) | ||||
|
Investment Income
|
(128 | ) | (200 | ) | ||||
|
Foreign Exchange Gain
|
(3,648 | ) | (1,489 | ) | ||||
| (1,862 | ) | (208 | ) | |||||
|
Income Before Provision for Income Taxes and
|
||||||||
|
Equity in Net (Loss) Income of Unconsolidated Entities
|
8,174 | 23,063 | ||||||
|
Provision for Income Taxes:
|
||||||||
|
Current
|
168 | 207 | ||||||
|
State
|
- | 1 | ||||||
| 168 | 208 | |||||||
|
Equity in Net (Loss) Income of Unconsolidated
|
||||||||
|
Entities (Net of Applicable Taxes)
|
(70 | ) | 1,225 | |||||
|
Net Income
|
$ | 7,936 | $ | 24,080 | ||||
|
Basic and Diluted Earnings Per Common Share:
|
||||||||
|
Basic Earnings Per Common Share:
|
$ | 1.11 | $ | 3.33 | ||||
|
Diluted Earnings Per Common Share:
|
$ | 1.11 | $ | 3.32 | ||||
|
Weighted Average Shares of Common Stock Outstanding:
|
||||||||
|
Basic
|
7,170,611 | 7,232,834 | ||||||
|
Diluted
|
7,170,611 | 7,256,129 | ||||||
|
Dividends Per Share
|
$ | 0.250 | $ | 0.375 | ||||
|
INTERNATIONAL SHIPHOLDING CORPORATION
|
||||||||
|
CONSOLIDATED BALANCE SHEETS
|
||||||||
|
(All Amounts in Thousands)
|
||||||||
|
(Unaudited)
|
||||||||
|
March 31,
|
December 31,
|
|||||||
|
ASSETS
|
2012
|
2011
|
||||||
|
Current Assets:
|
||||||||
|
Cash and Cash Equivalents
|
$ | 34,190 | $ | 21,437 | ||||
|
Restricted Cash
|
- | 8,907 | ||||||
|
Marketable Securities
|
13,086 | 12,827 | ||||||
|
Accounts Receivable, Net of Allowance for Doubtful Accounts
|
||||||||
|
of $100 and $100 in 2012 and 2011:
|
24,190 | 20,553 | ||||||
|
Federal Income Taxes Receivable
|
2 | 242 | ||||||
|
Net Investment in Direct Financing Leases
|
3,201 | 6,278 | ||||||
|
Other Current Assets
|
4,612 | 4,037 | ||||||
|
Notes Receivable
|
4,537 | 4,450 | ||||||
|
Material and Supplies Inventory
|
3,838 | 5,034 | ||||||
|
Total Current Assets
|
87,656 | 83,765 | ||||||
|
Investment in Unconsolidated Entities
|
13,571 | 12,800 | ||||||
|
Net Investment in Direct Financing Leases
|
16,160 | 43,837 | ||||||
|
Vessels, Property, and Other Equipment, at Cost:
|
||||||||
|
Vessels
|
538,226 | 581,705 | ||||||
|
Leasehold Improvements
|
26,128 | 26,128 | ||||||
|
Construction in Progress
|
413 | 20,729 | ||||||
|
Furniture and Equipment
|
9,430 | 9,372 | ||||||
| 574,197 | 637,934 | |||||||
|
Less - Accumulated Depreciation
|
(172,929 | ) | (171,820 | ) | ||||
| 401,268 | 466,114 | |||||||
|
Other Assets:
|
||||||||
|
Deferred Charges, Net of Accumulated Amortization
|
15,083 | 16,546 | ||||||
|
of $18,495 and $17,429 in 2012 and 2011, Respectively
|
||||||||
|
Intangible Assets, Net
|
2,576 | 3,219 | ||||||
|
Due from Related Parties
|
1,747 | 1,571 | ||||||
|
Notes Receivable
|
36,529 | 37,714 | ||||||
|
Other
|
4,755 | 13 | ||||||
| 60,690 | 59,063 | |||||||
|
TOTAL ASSETS
|
$ | 579,345 | $ | 665,579 | ||||
|
INTERNATIONAL SHIPHOLDING CORPORATION
|
||||||||
|
CONSOLIDATED BALANCE SHEETS
|
||||||||
|
(All Amounts in Thousands)
|
||||||||
|
(Unaudited)
|
||||||||
|
March 31,
|
December 31,
|
|||||||
|
|
2012
|
2011
|
||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
||||||
|
Current Liabilities:
|
||||||||
|
Current Maturities of Long-Term Debt
|
$ | 27,991 | $ | 36,079 | ||||
|
Accounts Payable and Accrued Liabilities
|
35,247 | 28,343 | ||||||
|
Total Current Liabilities
|
63,238 | 64,422 | ||||||
|
Long-Term Debt, Less Current Maturities
|
187,336 | 286,014 | ||||||
|
Other Long-Term Liabilities:
|
||||||||
|
Lease Incentive Obligation
|
6,606 | 6,640 | ||||||
|
Other
|
66,779 | 59,148 | ||||||
|
TOTAL LIABILITIES
|
323,959 | 416,224 | ||||||
|
Stockholders' Equity:
|
||||||||
|
Common Stock
|
8,590 | 8,606 | ||||||
|
Additional Paid-In Capital
|
85,506 | 85,830 | ||||||
|
Retained Earnings
|
209,041 | 204,109 | ||||||
|
Treasury Stock
|
(25,403 | ) | (25,403 | ) | ||||
|
Accumulated Other Comprehensive Loss
|
(22,348 | ) | (23,787 | ) | ||||
|
TOTAL STOCKHOLDERS' EQUITY
|
255,386 | 249,355 | ||||||
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 579,345 | $ | 665,579 | ||||
|
INTERNATIONAL SHIPHOLDING CORPORATION
|
||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
|
(All Amounts in Thousands)
|
||||||||
|
(Unaudited)
|
||||||||
|
|
Three Months Ended March 31,
|
|||||||
|
2012
|
2011
|
|||||||
|
Cash Flows from Operating Activities:
|
||||||||
|
Net Income
|
$ | 7,936 | $ | 24,080 | ||||
|
Adjustments to Reconcile Net Income to Net Cash Provided by
|
||||||||
|
Operating Activities:
|
||||||||
|
Depreciation
|
6,521 | 5,621 | ||||||
|
Amortization of Deferred Charges and Other Assets
|
2,432 | 1,571 | ||||||
|
Gain on Dry Bulk Transaction
|
- | (18,714 | ) | |||||
|
Non-Cash Stock Based Compensation
|
332 | 577 | ||||||
|
Equity in Net Income of Unconsolidated Entities
|
70 | (1,225 | ) | |||||
|
Distributions from Unconsolidated Entities
|
- | 750 | ||||||
|
Gain on Sale of Assets
|
(3,799 | ) | - | |||||
|
Loss (Gain) on Sale of Investments
|
(42 | ) | - | |||||
|
Non-Cash Gain on Foreign Currency Exchange
|
(3,648 | ) | (1,489 | ) | ||||
|
Changes in:
|
||||||||
|
Deferred Drydocking Charges
|
(1,924 | ) | (3,338 | ) | ||||
|
Accounts Receivable
|
(3,637 | ) | (9,265 | ) | ||||
|
Inventories and Other Current Assets
|
121 | 867 | ||||||
|
Other Assets
|
1,714 | 71 | ||||||
|
Accounts Payable and Accrued Liabilities
|
437 | 5,563 | ||||||
|
Other Long-Term Liabilities
|
(3,627 | ) | 1,905 | |||||
|
Net Cash Provided by Operating Activities
|
2,886 | 6,974 | ||||||
|
Cash Flows from Investing Activities:
|
||||||||
|
Principal payments received under Direct Financing Leases
|
1,518 | 1,330 | ||||||
|
Capital Improvements to Vessels and Other Assets
|
(22,885 | ) | (12,800 | ) | ||||
|
Proceeds from Sale of Assets
|
130,315 | - | ||||||
|
Purchase of Marketable Securities
|
5 | (1,120 | ) | |||||
|
Proceeds from Sale of Marketable Securities
|
(135 | ) | 1,150 | |||||
|
Investment in Unconsolidated Entities
|
(750 | ) | (1,646 | ) | ||||
|
Acquisition of Unconsolidated Entity
|
- | 16,861 | ||||||
|
Net Increase in Restricted Cash Account
|
6,907 | - | ||||||
|
Proceeds from Note Receivables
|
1,185 | 1,002 | ||||||
|
Net Cash Provided by Investing Activities
|
116,160 | 4,777 | ||||||
|
Cash Flows from Financing Activities:
|
||||||||
|
Proceeds from Issuance of Debt
|
31,175 | 34,029 | ||||||
|
Repayment of Debt
|
(134,292 | ) | (14,936 | ) | ||||
|
Additions to Deferred Financing Charges
|
(172 | ) | (69 | ) | ||||
|
Common Stock Dividends Paid
|
(3,004 | ) | (2,947 | ) | ||||
|
Net Cash (Used In) Provided by Financing Activities
|
(106,293 | ) | 16,077 | |||||
|
Net Increase in Cash and Cash Equivalents
|
12,753 | 27,828 | ||||||
|
Cash and Cash Equivalents at Beginning of Period
|
21,437 | 24,158 | ||||||
|
Cash and Cash Equivalents at End of Period
|
$ | 34,190 | $ | 51,986 | ||||