Attached files

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EX-32.2 - EX-32.2 - GENCO SHIPPING & TRADING LTDgnk-20200331ex3226bc86f.htm
EX-32.1 - EX-32.1 - GENCO SHIPPING & TRADING LTDgnk-20200331ex3219ca208.htm
EX-31.2 - EX-31.2 - GENCO SHIPPING & TRADING LTDgnk-20200331ex3126c54ea.htm
EX-31.1 - EX-31.1 - GENCO SHIPPING & TRADING LTDgnk-20200331ex311de5319.htm
EX-10.10 - EX-10.10 - GENCO SHIPPING & TRADING LTDgnk-20200331ex1010ba3ac.htm
EX-10.9 - EX-10.9 - GENCO SHIPPING & TRADING LTDgnk-20200331ex109331a83.htm
EX-10.8 - EX-10.8 - GENCO SHIPPING & TRADING LTDgnk-20200331ex1089cafcc.htm
EX-10.7 - EX-10.7 - GENCO SHIPPING & TRADING LTDgnk-20200331ex1079a22ac.htm
EX-10.6 - EX-10.6 - GENCO SHIPPING & TRADING LTDgnk-20200331ex106ef1f8a.htm
EX-10.5 - EX-10.5 - GENCO SHIPPING & TRADING LTDgnk-20200331ex10510a7b4.htm
EX-10.4 - EX-10.4 - GENCO SHIPPING & TRADING LTDgnk-20200331ex1042b0a45.htm
EX-10.3 - EX-10.3 - GENCO SHIPPING & TRADING LTDgnk-20200331ex10316c4df.htm
EX-10.2 - EX-10.2 - GENCO SHIPPING & TRADING LTDgnk-20200331ex102b8f913.htm
EX-10.1 - EX-10.1 - GENCO SHIPPING & TRADING LTDgnk-20200331ex101e0f762.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended  March 31, 2020

 

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from           to         

 

Commission File Number 001-33393

 


 

GENCO SHIPPING & TRADING LIMITED

(Exact name of registrant as specified in its charter)

 

 

 

 

Republic of the Marshall Islands

 

98-043-9758

(State or other jurisdiction of
incorporation or organization)

 

(I.R.S. Employer
Identification No.)

299 Park Avenue, 12th Floor, New York, New York 10171

(Address of principal executive offices) (Zip Code)

(646) 443-8550

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

 

 

 

 

 

 

 

 

Large accelerated filer 

 

Accelerated filer 

 

Non-accelerated filer 

 

Smaller reporting company 

 

 

 

 

 

 

Emerging growth company 

If emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act   

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

 

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.  Yes No

 

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

 

Title of each class

Trading Symbol(s)

Name of exchange on which registered

Common stock, par value $0.01 per share

GNK

New York Stock Exchange (NYSE)

 

The number of shares outstanding of each of the issuer’s classes of common stock, as of May 6, 2020: Common stock, par value $0.01 per share — 41,801,753 shares.

 

 

Genco Shipping & Trading Limited

 

 

 

Page

 

 

 

 

PART I — FINANCIAL INFORMATION

 

 

 

 

Item 1.

Financial Statements (unaudited)

4

 

 

 

 

a)

Condensed Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019

4

 

 

 

 

 

b)

Condensed Consolidated Statements of Operations for the Three Months ended March 31, 2020 and 2019

5

 

 

 

 

 

c)

Condensed Consolidated Statements of Comprehensive Loss for the Three Months ended March 31, 2020 and 2019

6

 

 

 

 

 

d)

Condensed Consolidated Statements of Equity for the Three Months ended March 31, 2020 and 2019

7

 

 

 

 

 

e)

Condensed Consolidated Statements of Cash Flows for the Three Months ended March 31, 2020 and 2019

8

 

 

 

 

 

f)

Notes to Condensed Consolidated Financial Statements

9

 

 

 

Item 2. 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

31

 

 

 

Item 3. 

Quantitative and Qualitative Disclosures About Market Risk

54

 

 

 

Item 4. 

Controls and Procedures

54

 

 

 

 

PART II —OTHER INFORMATION

 

 

 

 

Item 1A. 

Risk Factors

56

 

 

 

Item 6. 

Exhibits

57

 

2

Website Information

 

We intend to use our website, www.GencoShipping.com, as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in our website’s Investor section. Accordingly, investors should monitor the Investor portion of our website, in addition to following our press releases, SEC filings, public conference calls, and webcasts. To subscribe to our e-mail alert service, please submit your e-mail address at the Investor Relations Home page of the Investor section of our website. The information contained in, or that may be accessed through, our website is not incorporated by reference into or a part of this document or any other report or document we file with or furnish to the SEC, and any references to our website are intended to be inactive textual references only.

3

PART I. FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

Genco Shipping & Trading Limited

Condensed Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019

(U.S. Dollars in thousands, except for share and per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

March 31, 

 

December 31, 

 

 

    

2020

    

2019

 

 

    

 

    

 

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

134,338

 

$

155,889

 

Restricted cash

 

 

14,855

 

 

6,045

 

Due from charterers, net of a reserve of $665 and $1,064, respectively

 

 

15,004

 

 

13,701

 

Prepaid expenses and other current assets

 

 

10,865

 

 

10,049

 

Inventories

 

 

29,342

 

 

27,208

 

Vessels held for sale

 

 

23,129

 

 

10,303

 

Total current assets

 

 

227,533

 

 

223,195

 

 

 

 

 

 

 

 

 

Noncurrent assets:

 

 

 

 

 

 

 

Vessels, net of accumulated depreciation of $228,208 and $288,373, respectively

 

 

1,121,561

 

 

1,273,861

 

Deferred drydock, net of accumulated amortization of $6,993 and $11,862 respectively

 

 

17,704

 

 

17,304

 

Fixed assets, net of accumulated depreciation and amortization of $1,704 and $2,154, respectively

 

 

5,949

 

 

5,976

 

Operating lease right-of-use assets

 

 

7,904

 

 

8,241

 

Restricted cash

 

 

315

 

 

315

 

Total noncurrent assets

 

 

1,153,433

 

 

1,305,697

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,380,966

 

$

1,528,892

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

34,170

 

$

49,604

 

Current portion of long-term debt

 

 

72,962

 

 

69,747

 

Deferred revenue

 

 

7,818

 

 

6,627

 

Current operating lease liabilities

 

 

1,698

 

 

1,677

 

Total current liabilities:

 

 

116,648

 

 

127,655

 

 

 

 

 

 

 

 

 

Noncurrent liabilities:

 

 

 

 

 

 

 

Long-term operating lease liabilities

 

 

9,393

 

 

9,826

 

Long-term debt, net of deferred financing costs of $12,143 and $13,094, respectively

 

 

403,729

 

 

412,983

 

Total noncurrent liabilities

 

 

413,122

 

 

422,809

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

529,770

 

 

550,464

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 14)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

Common stock, par value $0.01; 500,000,000 shares authorized; 41,801,753 and 41,754,413 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively

 

 

418

 

 

417

 

Additional paid-in capital

 

 

1,714,385

 

 

1,721,268

 

Accumulated deficit

 

 

(863,607)

 

 

(743,257)

 

Total equity

 

 

851,196

 

 

978,428

 

Total liabilities and equity

 

$

1,380,966

 

$

1,528,892

 

 

See accompanying notes to condensed consolidated financial statements.

 

4

Genco Shipping & Trading Limited

Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2020 and 2019

(U.S. Dollars in Thousands, Except for Earnings Per Share and Share Data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

March 31, 

 

 

    

2020

    

2019

   

Revenues:

 

 

 

 

 

 

 

Voyage revenues

 

$

98,336

 

$

93,464

 

 

 

 

 

 

 

 

 

Total revenues

 

 

98,336

 

 

93,464

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Voyage expenses

 

 

48,368

 

 

43,022

 

Vessel operating expenses

 

 

21,813

 

 

23,190

 

Charter hire expenses

 

 

3,075

 

 

2,419

 

General and administrative expenses (inclusive of nonvested stock amortization expense of $481 and $452, respectively)

 

 

5,767

 

 

6,310

 

Technical management fees

 

 

1,854

 

 

1,940

 

Depreciation and amortization

 

 

17,574

 

 

18,076

 

Impairment of vessel assets

 

 

112,814

 

 

 —

 

Loss (gain) on sale of vessels

 

 

486

 

 

(611)

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

211,751

 

 

94,346

 

 

 

 

 

 

 

 

 

Operating loss

 

 

(113,415)

 

 

(882)

 

 

 

 

 

 

 

 

 

Other (expense) income:

 

 

 

 

 

 

 

Other (expense) income

 

 

(584)

 

 

329

 

Interest income

 

 

594

 

 

1,327

 

Interest expense

 

 

(6,945)

 

 

(8,575)

 

 

 

 

 

 

 

 

 

Other expense

 

 

(6,935)

 

 

(6,919)

 

 

 

 

 

 

 

 

 

Net loss

 

$

(120,350)

 

$

(7,801)

 

 

 

 

 

 

 

 

 

Net loss per share-basic

 

$

(2.87)

 

$

(0.19)

 

Net loss per share-diluted

 

$

(2.87)

 

$

(0.19)

 

Weighted average common shares outstanding-basic

 

 

41,866,357

 

 

41,726,106

 

Weighted average common shares outstanding-diluted

 

 

41,866,357

 

 

41,726,106

 

 

See accompanying notes to condensed consolidated financial statements.

5

Genco Shipping & Trading Limited

Condensed Consolidated Statements of Comprehensive Loss

For the Three Months Ended March 31, 2020 and 2019

(U.S. Dollars in Thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

March 31, 

 

 

    

2020

    

2019

 

 

 

 

 

 

 

 

 

Net loss

 

$

(120,350)

 

$

(7,801)

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 —

 

 

 —

 

 

 

 

 

 

 

 

 

Comprehensive loss

 

$

(120,350)

 

$

(7,801)

 

 

See accompanying notes to condensed consolidated financial statements.

6

Genco Shipping & Trading Limited

Condensed Consolidated Statements of Equity

For the Three Months Ended March 31, 2020 and 2019

(U.S. Dollars in Thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common

 

Paid-in

 

Accumulated

 

 

 

 

 

Stock

 

Capital

 

Deficit

 

Total Equity

 

Balance — January 1, 2020

 

$

417

 

$

1,721,268

 

$

(743,257)

 

$

978,428

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

(120,350)

 

 

(120,350)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of 47,341 shares of vested RSUs, net of forfeitures of 1,490 shares

 

 

 1

 

 

(1)

 

 

 

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared ($0.175 per share)

 

 

 

 

 

(7,363)

 

 

 

 

 

(7,363)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonvested stock amortization

 

 

 

 

 

481

 

 

 

 

 

481

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance — March 31, 2020

 

$

418

 

$

1,714,385

 

$

(863,607)

 

$

851,196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common

 

Paid-in

 

Accumulated

 

 

 

 

 

 

Stock

 

Capital

 

Deficit

 

Total Equity

 

Balance — January 1, 2019

 

$

416

 

$

1,740,163

 

$

(687,272)

 

$

1,053,307

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

(7,801)

 

 

(7,801)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of 12,477 shares of vested RSUs

 

 

 —

 

 

 —

 

 

 

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonvested stock amortization

 

 

 

 

 

452

 

 

 

 

 

452

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance — March 31, 2019

 

$

416

 

$

1,740,615

 

$

(695,073)

 

$

1,045,958

 

 

 

See accompanying notes to condensed consolidated financial statements.

7

 

 

Genco Shipping & Trading Limited

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2020 and 2019

(U.S. Dollars in Thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

March 31, 

 

 

    

2020

    

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net loss

 

$

(120,350)

 

$

(7,801)

 

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

 

17,574

 

 

18,076

 

Amortization of deferred financing costs

 

 

951

 

 

915

 

Noncash operating lease expense

 

 

337

 

 

285

 

Amortization of nonvested stock compensation expense

 

 

481

 

 

452

 

Impairment of vessel assets

 

 

112,814

 

 

 —

 

Loss (gain) on sale of vessels

 

 

486

 

 

(611)

 

Insurance proceeds for protection and indemnity claims

 

 

101

 

 

226

 

Change in assets and liabilities:

 

 

 

 

 

 

 

(Increase) decrease in due from charterers

 

 

(1,303)

 

 

5,041

 

(Increase) decrease in prepaid expenses and other current assets

 

 

(1,074)

 

 

927

 

Increase in inventories

 

 

(2,134)

 

 

(1,077)

 

Decrease in accounts payable and accrued expenses

 

 

(9,916)

 

 

(2,114)

 

Increase (decrease) in deferred revenue

 

 

1,191

 

 

(1,907)

 

Decrease in operating lease liabilities

 

 

(412)

 

 

(390)

 

Deferred drydock costs incurred

 

 

(2,784)

 

 

(410)

 

Net cash (used in) provided by operating activities

 

 

(4,038)

 

 

11,612

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchase of vessels and ballast water treatment systems, including deposits

 

 

(273)

 

 

(3,406)

 

Purchase of scrubbers (capitalized in Vessels)

 

 

(7,778)

 

 

(5,868)

 

Purchase of other fixed assets

 

 

(1,039)

 

 

(1,199)

 

Net proceeds from sale of vessels

 

 

14,510

 

 

6,351

 

Insurance proceeds for hull and machinery claims

 

 

157

 

 

 —

 

Net cash provided by (used in) investing activities

 

 

5,577

 

 

(4,122)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Repayments on the $108 Million Credit Facility

 

 

(1,580)

 

 

(1,580)

 

Proceeds from $495 Million Credit Facility

 

 

11,250

 

 

 —

 

Repayments on the $495 Million Credit Facility

 

 

(16,660)

 

 

(15,000)

 

Payment of common stock issuance costs

 

 

 —

 

 

(105)

 

Cash dividends paid

 

 

(7,290)

 

 

 —

 

Payment of deferred financing costs

 

 

 —

 

 

(591)

 

Net cash used in financing activities

 

 

(14,280)

 

 

(17,276)

 

 

 

 

 

 

 

 

 

Net decrease in cash, cash equivalents and restricted cash

 

 

(12,741)

 

 

(9,786)

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

162,249

 

 

202,761

 

Cash, cash equivalents and restricted cash at end of period

 

$

149,508

 

$

192,975

 

 

See accompanying notes to condensed consolidated financial statements.

8

Genco Shipping & Trading Limited

(U.S. Dollars in Thousands, Except Per Share and Share Data)

Notes to Condensed Consolidated Financial Statements (unaudited)

 

1 - GENERAL INFORMATION

 

The accompanying condensed consolidated financial statements include the accounts of Genco Shipping & Trading Limited (“GS&T”) and its direct and indirect wholly-owned subsidiaries (collectively, the “Company”). The Company is engaged in the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels. GS&T is incorporated under the laws of the Marshall Islands, and as of March 31, 2020, is the direct or indirect owner of all of the outstanding shares or limited liability company interests of the following subsidiaries: Genco Ship Management LLC; Genco Investments LLC; Genco RE Investments LLC; Genco Shipping Pte. Ltd.; Genco Shipping A/S; Baltic Trading Limited (“Baltic Trading”); and the ship-owning subsidiaries as set forth below under “Other General Information.” 

 

In March 2020, the World Health Organization declared the outbreak of a novel coronavirus strain, or COVID-19, to be a pandemic. The COVID-19 pandemic is having widespread, rapidly evolving, and unpredictable impacts on global society, economies, financial markets, and business practices. Governments have implemented measures in an effort to contain the virus, including social distancing, travel restrictions, border closures, limitations on public gatherings, working from home, supply chain logistical changes, and closure of non-essential businesses. This has led to a significant slowdown in overall economic activity levels globally and a decline in demand for certain of the raw materials that our vessels transport. 

 

At present, it is not possible to ascertain the overall impact of COVID-19 on the Company’s operational and financial performance, which may take some time to materialize and may not be fully reflected in the results for 2020.  However, an increase in the severity or duration or a resurgence of the COVID-19 pandemic could have a material adverse effect on the Company’s business, results of operations, cash flows, financial condition, the carrying value of the Company’s assets, the fair values of the Company’s vessels, and the Company’s ability to pay dividends. 

 

Other General Information

 

Below is the list of the Company’s wholly owned ship-owning subsidiaries as of March 31, 2020:

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned Subsidiaries

    

Vessel Acquired

    

Dwt

    

Delivery Date

    

Year Built

 

 

 

 

 

 

 

 

 

 

 

Genco Augustus Limited

 

Genco Augustus

 

180,151

 

8/17/07

 

2007

 

Genco Tiberius Limited

 

Genco Tiberius

 

175,874

 

8/28/07

 

2007

 

Genco London Limited

 

Genco London

 

177,833

 

9/28/07

 

2007

 

Genco Titus Limited

 

Genco Titus

 

177,729

 

11/15/07

 

2007

 

Genco Warrior Limited

 

Genco Warrior

 

55,435

 

12/17/07

 

2005

 

Genco Predator Limited

 

Genco Predator

 

55,407

 

12/20/07

 

2005

 

Genco Hunter Limited

 

Genco Hunter

 

58,729

 

12/20/07

 

2007

 

Genco Constantine Limited

 

Genco Constantine

 

180,183

 

2/21/08

 

2008

 

Genco Hadrian Limited

 

Genco Hadrian

 

169,025

 

12/29/08

 

2008

 

Genco Commodus Limited

 

Genco Commodus

 

169,098

 

7/22/09

 

2009

 

Genco Maximus Limited

 

Genco Maximus

 

169,025

 

9/18/09

 

2009

 

Genco Claudius Limited

 

Genco Claudius

 

169,001

 

12/30/09

 

2010

 

Genco Bay Limited

 

Genco Bay

 

34,296

 

8/24/10

 

2010

 

Genco Ocean Limited

 

Genco Ocean

 

34,409

 

7/26/10

 

2010

 

Genco Avra Limited

 

Genco Avra

 

34,391

 

5/12/11

 

2011

 

Genco Mare Limited

 

Genco Mare

 

34,428

 

7/20/11

 

2011

 

Genco Spirit Limited

 

Genco Spirit

 

34,432

 

11/10/11

 

2011

 

Genco Aquitaine Limited

 

Genco Aquitaine

 

57,981

 

8/18/10

 

2009

 

Genco Ardennes Limited

 

Genco Ardennes

 

58,018

 

8/31/10

 

2009

 

Genco Auvergne Limited

 

Genco Auvergne

 

58,020

 

8/16/10

 

2009

 

Genco Bourgogne Limited

 

Genco Bourgogne

 

58,018

 

8/24/10

 

2010

 

Genco Brittany Limited

 

Genco Brittany

 

58,018

 

9/23/10

 

2010

 

Genco Languedoc Limited

 

Genco Languedoc

 

58,018

 

9/29/10

 

2010

 

Genco Loire Limited

 

Genco Loire

 

53,430

 

8/4/10

 

2009

 

Genco Lorraine Limited

 

Genco Lorraine

 

53,417

 

7/29/10

 

2009

 

Genco Normandy Limited

 

Genco Normandy

 

53,596

 

8/10/10

 

2007

 

Genco Picardy Limited

 

Genco Picardy

 

55,257

 

8/16/10

 

2005

 

9

 

 

 

 

 

 

 

 

 

 

Wholly Owned Subsidiaries

    

Vessel Acquired

    

Dwt

    

Delivery Date

    

Year Built

 

 

 

 

 

 

 

 

 

 

 

Genco Provence Limited

 

Genco Provence

 

55,317

 

8/23/10

 

2004

 

Genco Pyrenees Limited

 

Genco Pyrenees

 

58,018

 

8/10/10

 

2010

 

Genco Rhone Limited

 

Genco Rhone

 

58,018

 

3/29/11

 

2011

 

Genco Weatherly Limited

 

Genco Weatherly

 

61,556

 

7/26/18

 

2014

 

Genco Columbia Limited

 

Genco Columbia

 

60,294

 

9/10/18

 

2016

 

Genco Endeavour Limited

 

Genco Endeavour

 

181,060

 

8/15/18

 

2015

 

Genco Resolute Limited

 

Genco Resolute

 

181,060

 

8/14/18

 

2015

 

Genco Defender Limited

 

Genco Defender

 

180,021

 

9/6/18

 

2016

 

Genco Liberty Limited

 

Genco Liberty

 

180,032

 

9/11/18

 

2016

 

Baltic Lion Limited

 

Baltic Lion

 

179,185

 

4/8/15

(1)

2012

 

Baltic Tiger Limited

 

Genco Tiger

 

179,185

 

4/8/15

(1)

2011

 

Baltic Leopard Limited

 

Baltic Leopard

 

53,446

 

4/8/10

 

2009

 

Baltic Panther Limited

 

Baltic Panther

 

53,350

 

4/29/10

 

2009

 

Baltic Cougar Limited

 

Baltic Cougar

 

53,432

 

5/28/10

 

2009

 

Baltic Jaguar Limited

 

Baltic Jaguar

 

53,473

 

5/14/10

 

2009

 

Baltic Bear Limited

 

Baltic Bear

 

177,717

 

5/14/10

 

2010

 

Baltic Wolf Limited

 

Baltic Wolf

 

177,752

 

10/14/10

 

2010

 

Baltic Wind Limited

 

Baltic Wind

 

34,408

 

8/4/10

 

2009

 

Baltic Cove Limited

 

Baltic Cove

 

34,403

 

8/23/10

 

2010

 

Baltic Breeze Limited

 

Baltic Breeze

 

34,386

 

10/12/10

 

2010

 

Baltic Fox Limited

 

Baltic Fox

 

31,883

 

9/6/13

 

2010

 

Baltic Hare Limited

 

Baltic Hare

 

31,887

 

9/5/13

 

2009

 

Baltic Hornet Limited

 

Baltic Hornet

 

63,574

 

10/29/14

 

2014

 

Baltic Wasp Limited

 

Baltic Wasp

 

63,389

 

1/2/15

 

2015

 

Baltic Scorpion Limited

 

Baltic Scorpion

 

63,462

 

8/6/15

 

2015

 

Baltic Mantis Limited

 

Baltic Mantis

 

63,470

 

10/9/15

 

2015

 


(1)

The delivery date for these vessels represents the date that the vessel was purchased from Baltic Trading.

 

 

2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Principles of consolidation

 

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which includes the accounts of GS&T and its direct and indirect wholly-owned subsidiaries.  All intercompany accounts and transactions have been eliminated in consolidation.

 

Basis of presentation

 

The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and the rules and regulations of the Securities and Exchange Commission (the “SEC”).  In the opinion of management of the Company, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and operating results have been included in the statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted.  These condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2019 (the “2019 10-K”).  The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the operating results to be expected for the year ending December 31, 2020.

 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Significant estimates include vessel valuations, the valuation of amounts due from charterers, residual value of vessels, useful life of vessels and the fair value of derivative instruments, if any.  Actual results could differ from those estimates.

 

10

Segment reporting

 

The Company reports financial information and evaluates its operations by voyage revenues and not by the length of ship employment for its customers, i.e., spot or time charters.  Each of the Company’s vessels serve the same type of customer, have similar operations and maintenance requirements, operate in the same regulatory environment, and are subject to similar economic characteristics. Based on this, the Company has determined that it operates in one reportable segment, the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels. 

 

Restricted cash

 

Current and non-current restricted cash includes cash that is restricted pursuant to our credit facilities.  Refer to Note 7 — Debt.  The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same amounts shown in the Condensed Consolidated Statements of Cash Flows:

 

 

 

 

 

 

 

 

 

 

 

March 31, 

 

December 31, 

 

 

    

2020

    

2019

 

Cash and cash equivalents

 

$

134,338

 

$

155,889

 

Restricted cash - current

 

 

14,855

 

 

6,045

 

Restricted cash - noncurrent

 

 

315

 

 

315

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash

 

$

149,508

 

$

162,249

 

 

 

 

 

 

 

 

 

 

Vessels held for sale

 

The Company’s Board of Directors has approved a strategy of divesting specifically identified older, less fuel-efficient vessels as part of a  fleet renewal program to streamline and modernize the Company’s fleet.

 

On March 2, 2020, the Company entered into an agreement to sell the Baltic Wind and on March 20, 2020, the Company entered into agreements to sell the Baltic Breeze and Genco Bay.  The relevant vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheets as of March 31, 2020.  The Baltic Wind, Baltic Breeze and Genco Bay are expected to be sold during the second and third quarters of 2020.  Refer to Note 4 — Vessel Acquisitions and Dispositions for details of the agreements.