TAMPA, Fla.--(BUSINESS WIRE)--Overseas Shipholding Group, Inc. (NYSE: OSG) (the “Company” or “OSG”), a leading provider of energy transportation services for crude oil and petroleum products in the U.S. Flag markets, today reported results for the fourth quarter and full year 2021.
- Shipping revenues for the fourth quarter 2021 were $95.5 million, an increase of $1.5 million from the third quarter 2021. Compared to the fourth quarter 2020, shipping revenues decreased 2.1% from $97.5 million. Shipping revenues for the full year 2021 were $359.1 million, down 14.2% compared with the full year 2020.
- Net loss for the fourth quarter 2021 was $3.7 million, or $(0.03) per diluted share, compared with net loss of $16.0 million, or ($0.18) per diluted share, in the third quarter 2021. Net loss was $844 thousand, or $(0.01) per diluted share, for the fourth quarter 2020. Net loss for the full year 2021 was $46.3 million, or $(0.51) per diluted share, compared with net income of $30.0 million, or $0.33 per diluted share, for the full year 2020.
- Time charter equivalent (TCE) revenues(A), a non-GAAP measure, for the fourth quarter 2021 were $80.0 million, an increase of $4.7 million from third quarter 2021. TCE revenues were down 7.0% compared to fourth quarter 2020. TCE revenues for the full year 2021 were $292.6 million, down 22.1% compared with the full year 2020.
- Fourth quarter 2021 Adjusted EBITDA(B), a non-GAAP measure, was $16.6 million, an increase of $4.4 million from the third quarter. Adjusted EBITDA decreased 19.0% from $20.5 million in the fourth quarter 2020. Full year Adjusted EBITDA was $45.1 million, down 63.8% from $124.9 million in the same period in 2020.
- Total cash(C) was $83.3 million as of December 31, 2021.
- During the quarter, we removed one vessel from layup. Subsequent to quarter-end, we removed an additional two vessels. As of March 1, 2022, we have two vessels remaining in layup.
Sam Norton, President and CEO, offered the following comments on the quarterly results announced today: “We are pleased with the operating results achieved during the final quarter of last year, marking the third consecutive quarter of improved sequential TCE and EBITDA performance. Importantly, we expect this trend to continue in 2022. As noted in our prior quarter’s release, Jones Act Vessel availability across the fourth quarter and into 2022 has tightened considerably, meaning that business fundamentals for our conventional Jones Act tankers continue to strengthen. Following on from having activated three tankers out of layup at the end of the third quarter and in the fourth quarter, the Overseas Anacortes and Overseas Long Beach have now joined the active trading fleet in recent weeks, leaving only one tanker and one lightering ATB in layup as of today. With additional available operating days at improved market rates, and the reliably solid contribution from our niche and Alaskan Tanker Company assets, we are witnessing steadily improving cashflows from our businesses and an improving balance sheet.”
Mr. Norton added, “Energy markets are experiencing dislocations at this time”, Mr. Norton continued, “creating trading opportunities that are not usually seen in the markets within which OSG operates. OSG’s fleet is well positioned to facilitate many of these new trading opportunities and, in doing so, providing reliably available transportation to meeting the evolving needs of the domestic US market.”
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A, B, C Reconciliations of these non-GAAP financial measures are included in the financial tables attached to this press release starting on Page 8.
Fourth Quarter 2021 Results
Shipping revenues were $95.5 million for the fourth quarter, an increase of $1.5 million, or 1.6%, from the third quarter of 2021. TCE revenues increased $4.7 million, or 6.1%, from the third quarter to $80.0 million in the fourth quarter. The increases were primarily a result of a 168-day decrease in layup days as two vessels came out of layup in September 2021 and a third vessel came out of layup in December 2021. Delaware Bay lightering volumes also contributed to an increase in revenues.
The fourth quarter operating loss was $1.9 million compared to the third quarter operating loss of $5.6 million.
Quarterly adjusted EBITDA increased to $16.6 million during the fourth quarter, a $4.4 million increase from the third quarter of 2021. The increase was driven by the increased revenues for the quarter.
In comparison to the fourth quarter of 2020, shipping revenues were down 2.1%. TCE revenues for the fourth quarter of 2021 were $80.0 million, a decrease of $6.1 million, or 7.0%, compared with the fourth quarter of 2020. The decrease resulted primarily from a 173-day increase in layup days due to vessels in layup during the fourth quarter of 2021 and one less MR tanker in the Company's fleet, reflecting the sale of the Overseas Gulf Coast during the second quarter of 2021. The decrease was offset by the addition to the Company's fleet of one ATB, OSG 205, delivered in December 2020.
Operating loss for the fourth quarter of 2021 was $1.9 million compared to operating income of $2.2 million for the fourth quarter of 2020. Net loss for the fourth quarter of 2021 was $3.7 million, or $(0.03) per diluted share, compared with net loss of $844 thousand, or $(0.01) per diluted share, for the fourth quarter 2020.
Adjusted EBITDA was $16.6 million for the 2021 fourth quarter, a decrease of $3.9 million compared with the fourth quarter of 2020, driven primarily by the decrease in TCE revenues.
Full Year 2021 Results
Shipping revenues were $359.0 million for the full year 2021, down 14.2% compared with the full year 2020. TCE revenues for the full year 2021 were $292.6 million, a decrease of $83.3 million, or 22.1% compared with the full year 2020. The decreases were primarily a result of (a) a 1,894-day increase in layup days due to seven vessels in layup for most of 2021, a decision taken in light of the lack of demand due to the economic impact of COVID-19, (b) one less MR tanker in our fleet, Overseas Gulf Coast, which was sold during the second quarter of 2021 and (c) two fewer ATBs, which were sold in May 2020 and August 2020, respectively. The decreases were offset by (a) a 204-day decrease in scheduled drydocking, (b) the addition to our fleet of three crude oil tankers, Alaskan Explorer, Alaskan Legend and Alaskan Navigator, which were purchased in March 2020, and two ATBs, OSG 204 and OSG 205, which were delivered at the end of May 2020 and the beginning of December 2020, respectively, (c) an increase in Delaware Bay lightering volumes and (d) five voyages for Military Sealift Command, which were longer international voyages, during 2021 compared to two such voyages during 2020. Two of seven vessels came out of layup in September 2021 and operated in the spot market. One of these two vessels commenced a 26-month time charter in mid-November 2021. A third vessel came out of layup in December 2021 and operated in the spot market.
Operating loss for the full year 2021 was $29.1 million, compared to operating income of $58.6 million for the full year 2020. The prior year included a gain on termination of a pre-existing arrangement related to the acquisition of the Alaska Tanker Company.
Net loss for the full year 2021 was $46.3 million, or $(0.51) per diluted share, compared with net income of $30.0 million, or $0.33 per diluted share, for the full year 2020.
Adjusted EBITDA was $45.1 million for the full year 2021, a decrease of $79.8 million compared with the full year 2020.
Conference Call
The Company will host a conference call to discuss its fourth quarter and full year 2021 results at 9:30 a.m. Eastern Time (“ET”) on Wednesday, March 9, 2022.
To access the call, participants should dial (844) 850-0546 for domestic callers and (412) 317-5203 for international callers. Please dial in ten minutes prior to the start of the call.
A live webcast of the conference call will be available from the Investor Relations section of the Company’s website at http://www.osg.com/.
An audio replay of the conference call will be available for one week starting at 11:30 a.m. ET on Wednesday, March 9, 2022 by dialing (877) 344-7529 for domestic callers and (412) 317-0088 for international callers, and entering Access Code 8908564.
About Overseas Shipholding Group, Inc.
Overseas Shipholding Group, Inc. (NYSE:OSG) is a publicly traded company providing energy transportation services for crude oil and petroleum products in the U.S. Flag markets. OSG is a major operator of tankers and ATBs in the Jones Act industry. OSG’s 22 vessel U.S. Flag fleet consists of three crude oil tankers doing business in Alaska, two conventional ATBs, two lightering ATBs, three shuttle tankers, ten MR tankers, and two non-Jones Act MR tankers that participate in the U.S. Maritime Security Program. OSG also currently owns and operates one Marshall Islands flagged MR tanker which trades internationally.
OSG is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world’s most customer-focused marine transportation companies and is headquartered in Tampa, FL. More information is available at www.osg.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, the Company may make or approve certain forward-looking statements in future filings with the Securities and Exchange Commission (SEC), in press releases or in oral or written presentations by representatives of the Company. All statements other than statements of historical facts should be considered forward-looking statements. These matters or statements may relate to our prospects, supply and demand for vessels in the markets in which we operate and the impact on market rates and vessel earnings, the continued stability of our niche businesses, the impact of our time charter contracts on our future financial performance, and such external events such as geopolitical conflicts. Forward-looking statements are based on our current plans, estimates and projections, and are subject to change based on a number of factors. COVID-19 has had, and will continue to have, a profound impact on our workforce and many other aspects of our business and industry. Investors should carefully consider the risk factors outlined in more detail in our filings with the SEC. We do not assume any obligation to update or revise any forward-looking statements except as may be required by applicable law. Forward-looking statements and written and oral forward-looking statements attributable to us or our representatives after the date of this press release are qualified in their entirety by the cautionary statements contained in this paragraph and in other reports previously or hereafter filed by us with the SEC.
Consolidated Statements of Operations ($ in thousands, except per share amounts) |
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Three Months Ended
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Years Ended
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2021 |
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2020 |
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2021 |
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2020 |
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Shipping Revenues: |
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Time and bareboat charter revenues |
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$ |
63,615 |
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$ |
80,427 |
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$ |
254,744 |
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$ |
344,512 |
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Voyage charter revenues |
|
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31,848 |
|
|
|
17,119 |
|
|
|
104,318 |
|
|
|
74,180 |
|
|
|
|
95,463 |
|
|
|
97,546 |
|
|
|
359,062 |
|
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|
418,692 |
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Operating Expenses: |
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Voyage expenses |
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15,437 |
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11,448 |
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66,467 |
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|
42,813 |
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Vessel expenses |
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38,598 |
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|
39,009 |
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|
140,413 |
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|
|
159,466 |
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Charter hire expenses |
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22,447 |
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|
22,861 |
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|
90,166 |
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|
|
90,608 |
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Depreciation and amortization |
|
|
15,910 |
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|
15,024 |
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61,823 |
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58,513 |
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Bad debt recovery |
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(1,080 |
) |
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— |
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(1,080 |
) |
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— |
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General and administrative |
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|
6,021 |
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6,957 |
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|
24,097 |
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|
26,869 |
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Loss on disposal of vessels and other property, including impairments, net |
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19 |
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24 |
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6,276 |
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|
982 |
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Total operating expenses |
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97,352 |
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95,323 |
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388,162 |
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379,251 |
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(Loss)/income from vessel operations |
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(1,889 |
) |
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2,223 |
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(29,100 |
) |
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|
39,441 |
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Gain on termination of pre-existing arrangement |
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— |
|
|
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— |
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|
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— |
|
|
|
19,172 |
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Operating (loss)/income |
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|
(1,889 |
) |
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|
2,223 |
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|
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(29,100 |
) |
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|
58,613 |
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Loss on extinguishment of debt, net |
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(70 |
) |
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— |
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|
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(8,031 |
) |
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(793 |
) |
Other income, net |
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1,845 |
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|
1,808 |
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|
|
1,985 |
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|
2,414 |
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(Loss)/income before interest expense and income taxes |
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|
(114 |
) |
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|
4,031 |
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|
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(35,146 |
) |
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|
60,234 |
|
Interest expense |
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|
(8,464 |
) |
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|
(5,902 |
) |
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|
(29,203 |
) |
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|
(24,045 |
) |
(Loss)/income before income taxes |
|
|
(8,578 |
) |
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|
(1,871 |
) |
|
|
(64,349 |
) |
|
|
36,189 |
|
Income tax benefit/(expense) |
|
|
4,902 |
|
|
|
1,027 |
|
|
|
18,097 |
|
|
|
(6,185 |
) |
Net (loss)/income |
|
$ |
(3,676 |
) |
|
$ |
(844 |
) |
|
$ |
(46,252 |
) |
|
$ |
30,004 |
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Weighted Average Number of Common Shares Outstanding: |
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Basic - Class A |
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90,807,935 |
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90,004,773 |
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90,587,454 |
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|
89,794,392 |
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Diluted - Class A |
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|
90,807,935 |
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|
90,004,773 |
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|
90,587,454 |
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|
90,838,262 |
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Per Share Amounts: |
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Basic and diluted net (loss)/income - Class A |
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$ |
(0.03 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.51 |
) |
|
$ |
0.33 |
|
Consolidated Balance Sheets ($ in thousands) |
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December 31, 2021 |
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December 31, 2020 |
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ASSETS |
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Current Assets: |
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|
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Cash and cash equivalents |
|
$ |
83,172 |
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$ |
69,697 |
|
Restricted cash |
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|
37 |
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|
|
49 |
|
Voyage receivables, including unbilled of $3,777 and $6,740, net of reserve for doubtful accounts |
|
|
14,586 |
|
|
|
13,123 |
|
Income tax receivable |
|
|
1,882 |
|
|
|
387 |
|
Other receivables |
|
|
5,816 |
|
|
|
1,817 |
|
Prepaid expenses |
|
|
543 |
|
|
|
1,310 |
|
Inventories and other current assets |
|
|
2,895 |
|
|
|
2,293 |
|
Total Current Assets |
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|
108,931 |
|
|
|
88,676 |
|
Vessels and other property, less accumulated depreciation |
|
|
761,777 |
|
|
|
832,174 |
|
Deferred drydock expenditures, net |
|
|
43,342 |
|
|
|
43,134 |
|
Total Vessels, Other Property and Deferred Drydock |
|
|
805,119 |
|
|
|
875,308 |
|
Restricted cash - non current |
|
|
44 |
|
|
|
73 |
|
Intangible assets, less accumulated amortization |
|
|
22,617 |
|
|
|
27,217 |
|
Operating lease right-of-use assets, net |
|
|
152,027 |
|
|
|
215,817 |
|
Other assets |
|
|
26,991 |
|
|
|
24,646 |
|
Total Assets |
|
$ |
1,115,729 |
|
|
$ |
1,231,737 |
|
LIABILITIES AND EQUITY |
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Current Liabilities: |
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|
|
|
|
|
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Accounts payable, accrued expenses and other current liabilities |
|
$ |
49,901 |
|
|
$ |
48,089 |
|
Current installments of long-term debt |
|
|
22,225 |
|
|
|
38,922 |
|
Current portion of operating lease liabilities |
|
|
100,010 |
|
|
|
90,613 |
|
Current portion of finance lease liabilities |
|
|
4,000 |
|
|
|
4,000 |
|
Total Current Liabilities |
|
|
176,136 |
|
|
|
181,624 |
|
Reserve for uncertain tax positions |
|
|
179 |
|
|
|
189 |
|
Long-term debt, net |
|
|
422,515 |
|
|
|
390,198 |
|
Deferred income taxes, net |
|
|
63,744 |
|
|
|
80,992 |
|
Noncurrent operating lease liabilities |
|
|
73,150 |
|
|
|
147,154 |
|
Noncurrent finance lease liabilities |
|
|
18,998 |
|
|
|
21,360 |
|
Other liabilities |
|
|
22,393 |
|
|
|
30,409 |
|
Total Liabilities |
|
|
777,115 |
|
|
|
851,926 |
|
Equity: |
|
|
|
|
|
|
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Common stock - Class A ($0.01 par value; 166,666,666 shares
|
|
|
872 |
|
|
|
864 |
|
Paid-in additional capital |
|
|
594,386 |
|
|
|
592,564 |
|
Accumulated deficit |
|
|
(259,587 |
) |
|
|
(213,335 |
) |
|
|
|
335,671 |
|
|
|
380,093 |
|
Accumulated other comprehensive income/(loss) |
|
|
2,943 |
|
|
|
(282 |
) |
Total Equity |
|
|
338,614 |
|
|
|
379,811 |
|
Total Liabilities and Equity |
|
$ |
1,115,729 |
|
|
$ |
1,231,737 |
|
Consolidated Statements of Cash Flows ($ in thousands) |
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Years Ended December 31, |
|
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|
|
2021 |
|
|
2020 |
|
||
Cash Flows from Operating Activities: |
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|
|
|
|
|
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Net (loss)/income |
|
$ |
(46,252 |
) |
|
$ |
30,004 |
|
Items included in net income not affecting cash flows: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
61,823 |
|
|
|
58,513 |
|
Bad debt recovery |
|
|
(1,080 |
) |
|
|
— |
|
Gain on termination of pre-existing arrangement |
|
|
— |
|
|
|
(19,172 |
) |
Amortization of debt discount and other deferred financing costs |
|
|
2,099 |
|
|
|
2,286 |
|
Compensation relating to restricted stock, stock unit and stock option grants |
|
|
2,232 |
|
|
|
2,333 |
|
Deferred income tax (benefit)/expense |
|
|
(18,236 |
) |
|
|
6,298 |
|
Interest on finance lease liabilities |
|
|
1,799 |
|
|
|
1,973 |
|
Non-cash operating lease expense |
|
|
90,863 |
|
|
|
91,696 |
|
Distributed earnings of affiliated companies |
|
|
— |
|
|
|
3,562 |
|
Items included in net income related to investing and financing activities: |
|
|
|
|
|
|
||
Loss on extinguishment and prepayments of debt, net |
|
|
5,295 |
|
|
|
793 |
|
Loss on disposal of vessels and other property, including impairments, net |
|
|
6,276 |
|
|
|
982 |
|
Payments for drydocking |
|
|
(19,037 |
) |
|
|
(30,732 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Operating lease liabilities |
|
|
(92,634 |
) |
|
|
(92,753 |
) |
Increase in receivables |
|
|
(384 |
) |
|
|
(3,876 |
) |
(Decrease)/increase in income tax receivable |
|
|
(1,495 |
) |
|
|
6,133 |
|
Increase/(decrease) in deferred revenue |
|
|
9,666 |
|
|
|
(2,903 |
) |
Net change in other operating assets and liabilities |
|
|
(12,767 |
) |
|
|
(2,469 |
) |
Net cash (used in)/provided by operating activities |
|
|
(11,832 |
) |
|
|
52,668 |
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
||
Acquisition, net of cash acquired |
|
|
— |
|
|
|
(16,973 |
) |
Expenditures for vessels and vessel improvements |
|
|
(7,793 |
) |
|
|
(62,586 |
) |
Proceeds from disposal of vessels and other property |
|
|
32,128 |
|
|
|
1,407 |
|
Net cash provided by/(used in) investing activities |
|
|
24,335 |
|
|
|
(78,152 |
) |
Cash Flows from Financing Activities: |
|
|
|
|
|
|
||
Extinguishment of debt and prepayments |
|
|
(277,520 |
) |
|
|
(41,021 |
) |
Issuance of debt, net of issuance and deferred financing costs |
|
|
321,531 |
|
|
|
143,949 |
|
Payments on debt |
|
|
(33,316 |
) |
|
|
(44,933 |
) |
Tax withholding on share-based awards |
|
|
(402 |
) |
|
|
(197 |
) |
Payments on principal portion of finance lease liabilities |
|
|
(4,161 |
) |
|
|
(4,172 |
) |
Extinguishment of debt costs paid |
|
|
(2,736 |
) |
|
|
— |
|
Deferred financing costs paid for debt amendments |
|
|
(2,465 |
) |
|
|
— |
|
Net cash provided by financing activities |
|
|
931 |
|
|
|
53,626 |
|
Net increase in cash, cash equivalents and restricted cash |
|
|
13,434 |
|
|
|
28,142 |
|
Cash, cash equivalents and restricted cash at beginning of year |
|
|
69,819 |
|
|
|
41,677 |
|
Cash, cash equivalents and restricted cash at end of year |
|
$ |
83,253 |
|
|
$ |
69,819 |
|
Spot and Fixed TCE Rates Achieved and Revenue Days
The following tables provide a breakdown of TCE rates achieved for spot and fixed charters and the related revenue days for the three months and fiscal year ended December 31, 2021 and the comparable periods of 2020. Revenue days in the quarter ended December 31, 2021 totaled 1,597 compared with 1,756 in the prior year quarter. Revenue days in the fiscal year ended December 31, 2021 totaled 6,064 compared with 7,639 in the prior year. A summary fleet list by vessel class can be found later in this press release.
|
|
2021 |
|
|
2020 |
|
||||||||||
For the three months ended December 31, |
|
Spot
|
|
|
Fixed
|
|
|
Spot
|
|
|
Fixed
|
|
||||
Jones Act Handysize Product Carriers: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average rate |
|
$ |
39,841 |
|
|
$ |
65,541 |
|
|
$ |
1,712 |
|
|
$ |
62,935 |
|
Revenue days |
|
|
294 |
|
|
|
476 |
|
|
|
111 |
|
|
|
828 |
|
Non-Jones Act Handysize Product Carriers: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average rate |
|
$ |
32,015 |
|
|
$ |
12,700 |
|
|
$ |
34,076 |
|
|
$ |
11,093 |
|
Revenue days |
|
|
184 |
|
|
|
92 |
|
|
|
205 |
|
|
|
162 |
|
ATBs: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average rate |
|
$ |
— |
|
|
$ |
34,802 |
|
|
$ |
— |
|
|
$ |
30,056 |
|
Revenue days |
|
|
— |
|
|
|
183 |
|
|
|
— |
|
|
|
116 |
|
Lightering: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average rate |
|
$ |
72,007 |
|
|
$ |
— |
|
|
$ |
75,162 |
|
|
$ |
— |
|
Revenue days |
|
|
92 |
|
|
|
— |
|
|
|
89 |
|
|
|
— |
|
Alaska (a): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average rate |
|
$ |
— |
|
|
$ |
60,496 |
|
|
$ |
— |
|
|
$ |
58,987 |
|
Revenue days |
|
|
— |
|
|
|
276 |
|
|
|
— |
|
|
|
245 |
|
|
|
2021 |
|
|
2020 |
|
||||||||||
For the years ended December 31, |
|
Spot
|
|
|
Fixed
|
|
|
Spot
|
|
|
Fixed
|
|
||||
Jones Act Handysize Product Carriers: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average rate |
|
$ |
34,985 |
|
|
$ |
65,794 |
|
|
$ |
24,568 |
|
|
$ |
61,411 |
|
Revenue days |
|
|
843 |
|
|
|
1,856 |
|
|
|
359 |
|
|
|
3,889 |
|
Non-Jones Act Handysize Product Carriers: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average rate |
|
$ |
31,017 |
|
|
$ |
10,048 |
|
|
$ |
30,582 |
|
|
$ |
15,213 |
|
Revenue days |
|
|
735 |
|
|
|
520 |
|
|
|
699 |
|
|
|
710 |
|
ATBs: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average rate |
|
$ |
— |
|
|
$ |
33,849 |
|
|
$ |
16,987 |
|
|
$ |
28,536 |
|
Revenue days |
|
|
— |
|
|
|
727 |
|
|
|
277 |
|
|
|
291 |
|
Lightering: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average rate |
|
$ |
73,624 |
|
|
$ |
— |
|
|
$ |
56,003 |
|
|
$ |
61,012 |
|
Revenue days |
|
|
365 |
|
|
|
— |
|
|
|
476 |
|
|
|
87 |
|
Alaska (a): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average rate |
|
$ |
— |
|
|
$ |
59,002 |
|
|
$ |
— |
|
|
$ |
58,742 |
|
Revenue days |
|
|
— |
|
|
|
1,018 |
|
|
|
— |
|
|
|
851 |
|
(a) Excludes one Alaska vessel currently in layup. |
||||||||||||||||
Fleet Information
As of December 31, 2021, OSG’s operating fleet consisted of 24 vessels, 12 of which were owned, with the remaining vessels chartered-in. Vessels chartered-in are on Bareboat Charters.
|
|
Vessels Owned |
|
|
Vessels
|
|
|
Total at December 31, 2021 |
|
|||||||
Vessel Type |
|
Number |
|
|
Number |
|
|
Total Vessels |
|
|
Total dwt (3) |
|
||||
Handysize Product Carriers (1) |
|
|
5 |
|
|
|
11 |
|
|
|
16 |
|
|
|
760,493 |
|
Crude Oil Tankers (2) |
|
|
3 |
|
|
|
1 |
|
|
|
4 |
|
|
|
772,194 |
|
Refined Product ATBs |
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
|
|
54,182 |
|
Lightering ATBs |
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
|
|
91,112 |
|
Total Operating Fleet |
|
|
12 |
|
|
|
12 |
|
|
|
24 |
|
|
|
1,677,981 |
|
(1) Includes two owned shuttle tankers, 11 chartered-in tankers, and two non-Jones Act MR tankers that participate in the U.S. Maritime Security Program, all of which are U.S. flagged, as well as one owned Marshall Island flagged non-Jones Act MR tanker trading in international markets.
|
||||||||||||||||
Reconciliation to Non-GAAP Financial Information
The Company believes that, in addition to conventional measures prepared in accordance with GAAP, the following non-GAAP measures provide investors with additional information that will better enable them to evaluate the Company’s performance. Accordingly, these non-GAAP measures are intended to provide supplemental information, and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP.
(A) Time Charter Equivalent (TCE) Revenues
Consistent with general practice in the shipping industry, the Company uses TCE revenues, which represents shipping revenues less voyage expenses, as a measure to compare revenue generated from a voyage charter to revenue generated from a time charter. TCE revenues, a non-GAAP measure, provides additional meaningful information in conjunction with shipping revenues, the most directly comparable GAAP measure, because it assists Company management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. Reconciliation of TCE revenues of the segments to shipping revenues as reported in the consolidated statements of operations follows:
|
|
Three Months Ended
|
|
|
Years Ended
|
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
Time charter equivalent revenues |
|
$ |
80,026 |
|
|
$ |
86,098 |
|
|
$ |
292,595 |
|
|
$ |
375,879 |
|
Add: Voyage expenses |
|
|
15,437 |
|
|
|
11,448 |
|
|
|
66,467 |
|
|
|
42,813 |
|
Shipping revenues |
|
$ |
95,463 |
|
|
$ |
97,546 |
|
|
$ |
359,062 |
|
|
$ |
418,692 |
|
Vessel Operating Contribution
Vessel operating contribution, a non-GAAP measure, is TCE revenues minus vessel expenses and charter hire expenses.
|
|
Three Months Ended
|
|
|
Years Ended
|
|
||||||||||
($ in thousands) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
Niche market activities |
|
$ |
15,472 |
|
|
$ |
18,313 |
|
|
$ |
62,585 |
|
|
$ |
79,826 |
|
Jones Act handysize tankers |
|
|
(8,720 |
) |
|
|
(2,464 |
) |
|
|
(44,415 |
) |
|
|
15,670 |
|
ATBs |
|
|
3,981 |
|
|
|
1,335 |
|
|
|
15,384 |
|
|
|
4,658 |
|
Alaska crude oil tankers |
|
|
8,248 |
|
|
|
7,044 |
|
|
|
28,462 |
|
|
|
25,651 |
|
Vessel operating contribution |
|
|
18,981 |
|
|
|
24,228 |
|
|
|
62,016 |
|
|
|
125,805 |
|
Depreciation and amortization |
|
|
15,910 |
|
|
|
15,024 |
|
|
|
61,823 |
|
|
|
58,513 |
|
Bad debt recovery |
|
|
(1,080 |
) |
|
|
— |
|
|
|
(1,080 |
) |
|
|
— |
|
General and administrative |
|
|
6,021 |
|
|
|
6,957 |
|
|
|
24,097 |
|
|
|
26,869 |
|
Loss on disposal of vessels and other property, including impairments, net |
|
|
19 |
|
|
|
24 |
|
|
|
6,276 |
|
|
|
982 |
|
(Loss)/income from vessel operations |
|
$ |
(1,889 |
) |
|
$ |
2,223 |
|
|
$ |
(29,100 |
) |
|
$ |
39,441 |
|
(B) EBITDA and Adjusted EBITDA
EBITDA represents net income/(loss) before interest expense, income taxes and depreciation and amortization expense. Adjusted EBITDA consists of EBITDA adjusted to exclude amortization classified in charter hire expenses, interest expense classified in charter hire expenses, loss/(gain) on disposal of vessels and other property, including impairments, net, non-cash stock based compensation expense and loss on repurchases and extinguishment of debt and the impact of other items that we do not consider indicative of our ongoing operating performance. EBITDA and Adjusted EBITDA do not represent, and should not be a substitute for, net income/(loss) or cash flows from operations as determined in accordance with GAAP. Some of the limitations are: (i) EBITDA and Adjusted EBITDA do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments; (ii) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs; and (iii) EBITDA and Adjusted EBITDA do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our debt. While EBITDA and Adjusted EBITDA are frequently used as a measure of operating results and performance, neither of them is necessarily comparable to other similarly titled measures used by other companies due to differences in methods of calculation. The following table reconciles net income/(loss) as reflected in the consolidated statements of operations, to EBITDA and Adjusted EBITDA.
|
|
Three Months Ended
|
|
|
Years Ended
|
|
||||||||||
($ in thousands) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
Net (loss)/income |
|
$ |
(3,676 |
) |
|
$ |
(844 |
) |
|
$ |
(46,252 |
) |
|
$ |
30,004 |
|
Income tax (benefit)/expense |
|
|
(4,902 |
) |
|
|
(1,027 |
) |
|
|
(18,097 |
) |
|
|
6,185 |
|
Interest expense |
|
|
8,464 |
|
|
|
5,902 |
|
|
|
29,203 |
|
|
|
24,045 |
|
Depreciation and amortization |
|
|
15,910 |
|
|
|
15,024 |
|
|
|
61,823 |
|
|
|
58,513 |
|
EBITDA |
|
|
15,796 |
|
|
|
19,055 |
|
|
|
26,677 |
|
|
|
118,747 |
|
Amortization classified in charter hire expenses |
|
|
143 |
|
|
|
143 |
|
|
|
570 |
|
|
|
570 |
|
Interest expense classified in charter hire expenses |
|
|
330 |
|
|
|
360 |
|
|
|
1,354 |
|
|
|
1,477 |
|
Loss on disposal of vessels and other property, including impairments, net |
|
|
19 |
|
|
|
24 |
|
|
|
6,276 |
|
|
|
982 |
|
Non-cash stock based compensation expense |
|
|
244 |
|
|
|
646 |
|
|
|
2,232 |
|
|
|
2,332 |
|
Loss on extinguishment of debt, net |
|
|
70 |
|
|
|
290 |
|
|
|
8,031 |
|
|
|
793 |
|
Adjusted EBITDA |
|
$ |
16,602 |
|
|
$ |
20,518 |
|
|
$ |
45,140 |
|
|
$ |
124,901 |
|
(C) Total Cash
($ in thousands) |
|
December 31,
|
|
|
December 31,
|
|
||
Cash and cash equivalents |
|
$ |
83,172 |
|
|
$ |
69,697 |
|
Restricted cash - current |
|
|
37 |
|
|
|
49 |
|
Restricted cash – non-current |
|
|
44 |
|
|
|
73 |
|
Total cash |
|
$ |
83,253 |
|
|
$ |
69,819 |
|
Category: Earnings
