TBS International plc (NASDAQ: TBSI) announced today its financial
and operating results for the fourth quarter and year ended
December 31, 2010.
Fourth Quarter and Year Ended December 31, 2010 Highlights:
Metric Q4 2010 Q4 2009 FY 2010 FY 2009
----------- ----------- ----------- -----------
Revenue (thousands) $ 100,770 $ 84,790 $ 411,833 $ 302,516
Net (Loss) attributable
to TBS International
plc (thousands) (1) $ (217,391) $ (10,700) $ (245,266) $ (67,040)
Net (Loss) per ordinary
share (basic and
diluted) (1) $ (7.12) $ (0.36) $ (8.12) $ (2.25)
Weighted average
ordinary shares
outstanding (basic and
diluted) 30,521,119 29,865,308 30,217,210 29,843,566
EBITDA, adjusted
(thousands) (2) $ 20,404 $ 19,373 $ 87,757 $ 45,860
Drydock Days 61 183 399 664
Freight Voyages
Average Daily Voyage
TCE $ 12,803 $ 13,158 13,721 $ 12,069
Freight Voyage Days 3,051 2,742 11,435 11,470
Revenue tons carried
for all cargoes
(thousands) 2,741 2,094 10,329 8,788
Average Freight Rate
for all cargoes $ 27.59 $ 31.79 $ 28.64 $ 28.22
Average Freight Rate
excluding Aggregates 53.96 50.00 54.30 45.36
Time Charter out Voyages
Average Daily Time
Charter TCE $ 15,216 $ 12,184 $ 16,958 $ 10,070
Time Charter Days 1,381 1,322 5,818 4,733
(1) Net Loss and loss per ordinary share for the fourth quarter and full
year 2010 include a $201.7 million impairment charge. Excluding this
charge, Net Loss and Net Loss per ordinary share would have been $43.6
million and $1.44 per ordinary share, respectively, for the year ended
December 31, 2010 and $15.7 million and $0.51 per ordinary share,
respectively, for the three months ended December 31, 2010.
(2) EBITDA is a non-GAAP financial measure and is defined as loss before
interest, depreciation, amortization and impairment loss. Please refer
to "Non-GAAP Reconciliations-EBITDA" following the financial
statements included in this press release for a reconciliation of
EBITDA to Net Loss.
Management Commentary:
Joseph E. Royce, Chairman, Chief Executive Officer and President
stated:
"The TBS results for the fourth quarter 2010 reflect the ongoing
downward pressure on dry cargo freight rates that have continued
into the first quarter of 2011, as evidenced by the Baltic Dry
Indices.
"The Baltic Dry Index ('BDI') which was at 2,446 on September
30, 2010 descended to 1,773 on December 24th (the last reporting
date in 2010) and was at 1,559 on March 14, 2011. Correspondingly,
the Baltic Handysize Index ('BHSI') which was at 1,039 on September
30, 2010 descended to 829 on December 24th and was at 736 on March
14, 2011. A number of factors have contributed to this
circumstance. Of most importance is the continued drumbeat of the
delivery of new-built vessels in all four of the major vessel sizes
-- Capesize, Panamax, Supramax and Handysize.
"While cargo demand generally increased during most of 2010,
numerous events over the last several months have interrupted the
availability of cargo contributing to both the supply-demand
imbalance and the Asia-Americas imbalance. There has been severe
flooding in Australia that has interrupted shipments of coal, iron
ore and wheat, along with Government imposed reductions of the
export of coal from Indonesia and Iron ore from India, thereby
causing the deviation of vessels that traditionally carried these
cargoes from that region into the Atlantic.
"As a consequence, TBS is operating at freight and charter rates
that would cause us to fail to comply with certain financial
covenants in our credit facilities, even as recently modified, as
soon as June 30, 2011. Ferdinand V. Lepere, our Senior Executive
Vice President and Chief Financial Officer, will address this issue
and our financial results in greater detail."
Ferdinand V. Lepere, Senior Executive Vice President and Chief
Financial Officer, commented:
"As announced on January 31, 2011, we have successfully amended
our credit facilities with all our lenders. However, due to the
continued decline in freight and charter rates, we are currently
operating at rates that would cause us to fail to comply with
certain recently amended financial covenants in our credit
facilities as soon as June 30, 2011. Should we fail to meet the
tests under certain of our financial covenants, we would need to
enter into negotiations with our lenders to seek modifications of
those financial covenants. Failure to comply with our financial
covenants or obtain modifications or waivers of such covenants
would raise substantial doubt about our ability to continue as a
going concern.
"The continued weakness in freight and charter rates, and the
consequent decrease in the market value of our vessels caused us to
perform an impairment assessment of our long-lived assets and
recognize impairment in the carrying value of our vessels. During
the fourth quarter of 2010, we recorded a non-cash impairment loss
of $201.7 million, which increased our operating expense for the
fourth quarter and the year ended December 31, 2010 by an equal
amount. Excluding vessel impairment charges, the Net Loss for the
year 2010 would have been $43.6 million, an improvement of 34.9%
compared to Net Loss of $67.0 million for the same period in 2009.
Despite these challenges, our operating performance in 2010
improved, as indicated by our EBITDA, excluding the impairment
charge, which reached $87.7 million for the full year 2010, an
increase of 91.1% compared to $45.9 million of EBITDA from the
prior year.
"At December 31, 2010, after taking into consideration the
impairment charge, our net debt to capitalization ratio was 51.3%.
Our cash balance at the end of December 31, 2010 was approximately
$19.0 million, excluding $6.7 million of restricted cash of which
$6.2 million pertains to our newbuilding program. During 2010, we
made scheduled debt principal payments in the amount of $49.0
million.
"Our newbuilding program for the six Roymar Class multipurpose
tweendeckers is nearly complete; we have taken delivery of five
vessels. The remaining vessel is expected to be delivered in the
second quarter of 2011, and we have in place the requisite bank
financing for this vessel.
"In the fourth quarter of 2010, we continued our drydocking
program and drydocked three vessels for a total of 61 drydocking
days."
Fourth Quarter 2010 Results:
For the fourth quarter ended December 31, 2010, total revenues
were $100.8 million, an increase of 18.9% compared to total
revenues of $84.8 million for the same period in 2009. Net Loss for
the fourth quarter 2010 was $217.4 million, an increase of $206.7
million compared to the Net Loss of $10.7 million for the same
period in 2009. Loss per ordinary share on a basic and diluted
basis were $7.12 in the fourth quarter of 2010, calculated based on
30,521,119 shares, compared to $0.36 for the fourth quarter of
2009, calculated based on 29,865,308 shares.
The increase in Net Loss and Net Loss per share as compared to
the same period in 2009 is mainly attributable to a $201.7 million
vessel impairment charge. Excluding vessel impairment, Net Loss and
Loss per ordinary share for the three months ended December 31,
2010 would have been $15.7 million and $0.51 per ordinary share,
respectively.
EBITDA, which is a non-GAAP measure, increased to $20.4 million
for the quarter ended December 31, 2010 from $19.4 million in the
same period in 2009. EBITDA for the quarter ended December 31, 2010
excludes an impairment charge of $201.7 million. Please see
"Non-GAAP Reconciliations - EBITDA" following the financial
statements in this press release for a reconciliation of EBITDA to
Net Loss.
An average of 48 vessels (excluding off-hire) were operated
during the fourth quarter 2010 compared to 44 vessels (excluding
off-hire) during the same period in 2009.
Total revenues of $100.8 million for the fourth quarter 2010
include voyage revenues of $75.6 million, time charter revenues of
$22.6 million and logistics and other revenues of $2.6 million.
Year ended December 31, 2010 Results:
For the year ended December 31, 2010, total revenues were $411.8
million, an increase of 36.1% compared to the $302.5 million for
the year 2009. Net Loss for 2010 increased by $178.3 million, or
266%, to $245.3 million, or $8.12 per share, calculated based on
30,217,210 shares. The increase in Net Loss for the year ended
December 31, 2010 as compared to 2009 is mainly attributable to a
$201.7 million vessel impairment, partly offset by a slight
increase in both cargo volumes and freight rates resulting in
higher revenues and Time Charter Equivalent. Excluding vessel
impairment, Net loss for the year ended 2010 would have been $43.6
million, a decrease of 34.9% compared to Net Loss of $67.0 million
in 2009. Excluding the vessel impairment charge, Net Loss per
ordinary share for the year ended December 31, 2010 would have been
$1.44 per share, based on 30,217,210 shares, compared to $2.25 Net
Loss per share, calculated based on 29,843,566 shares, for the year
2009.
EBITDA, which is a non-GAAP measure, increased by 91.1% to $87.7
million for the year ended December 31, 2010 from $45.9 million in
2009. EBITDA for 2010 excludes an impairment charge of $201.7
million. Please refer to "Non-GAAP Reconciliations - EBITDA"
following the financial statements included in this press release
for a reconciliation of EBITDA to Net Loss.
Revenues:
Total revenues for 2010 were $411.8 million, an increase of
$109.3 million, or 36.1%, from $302.5 million in 2009. Total
revenues of $411.8 million for 2010 include voyage revenues of
$295.8 million, time charter revenue of $105.8 million and
logistics and other revenues of $10.2 million.
An average of 47 vessels (excluding off-hire) were operated
during the year 2010 compared to 44 vessels (excluding off-hire)
during 2009.
Voyage Revenues:
Voyage revenues for 2010 were $295.8 million, an increase of
$47.8 million, or 19.3%, from the $248.0 million in 2009. The
increase in voyage revenue during 2010 is primarily attributable to
an increase in revenue tons carried and freight rates. Overall
average freight rates for all cargoes increased slightly by $0.42
per ton, or 1.5%, to $28.64 during the year 2010 compared to $28.22
per ton in 2009.
Freight rates excluding aggregates increased by $8.94 per ton
or, 19.7%, to $54.30 per ton for 2010 from $45.36 per ton during
2009; whereas freight rates for aggregate cargoes decreased $1.10
per ton, or 13.3%, to $7.17 per ton for the year 2010 as compared
to $8.27 per ton in 2009. The decrease in average freight rates for
aggregates cargoes was mainly due to lower average revenue earned
on each voyage caused by decreased port congestion that reduced
demurrage revenue.
Revenue tons carried increased 1.5 million tons, or 17.5%, to
10.3 million tons for the year ended December 31, 2010 from 8.8
million revenue tons for 2009. This increase was primarily due to
an increase of 1.6 million revenue ton in aggregates carried during
2010 as compared to 2009, which can be attributed to an increase in
the number of spot voyages of aggregates in 2010.
Average Daily Voyage Time Charter Equivalent, which is an
industry standard metric reflecting the daily net earnings of a
voyage after deducting all voyage expenses from voyage revenues,
was $13,721 per day for 2010, an increase of 13.7% from $12,069
during 2009.
Time Charter Revenues:
Time charter revenues increased by $54.6 million, or 106.6%, to
$105.8 million for the year ended December 31, 2010 from $51.2
million for 2009. The increase was primarily caused by a 68.1%
increase in time charter rates and a 22.9% increase in time charter
out days.
Average Daily Time Charter Equivalent, which is an industry
standard metric reflecting time charter-out revenues during the
period reduced by commissions, was $16,958 per day for 2010, an
increase of 68.4% from $10,070 during 2009. Average time charter
rates for 2010 rebounded from their low point in 2009 during the
first half of 2010. Time charter rates were negatively influenced
during the second half of 2010 by supply and demand imbalances for
ocean freight transportation caused by recent economic events.
Expenses:
Total operating expenses for 2010 increased by $279.2 million,
or 79.2%, to $631.7 million from $352.5 million for 2009. The
increase in total operating expenses for the year ended December
31, 2010 as compared to the same period for 2009 is mainly
attributable to a $201.7 million vessel impairment charge.
Voyage expenses, which include fuel costs, commissions, port
call charges and stevedoring, increased by $31.4 million, or 27.8%,
to $144.5 million for the year ended December 31, 2010. The
increase was principally due to rising fuel expenses as a result of
higher average fuel costs partly offset by a decrease in
consumption, increased commission expense as a result of higher
voyage revenues, as well as higher port call expenses and stevedore
and other cargo-related expenses.
Logistics expenses, which represent expenses associated with
logistics movements, increased $4.3 million to $6.5 million for the
year ended December 31, 2010 from $2.2 million in 2009. Logistics
operating margins improved to 31.0% for the year 2010 as compared
to 18.4% in 2009, mainly due to the TBS's ability to pass on more
logistics expenses to customers.
Vessel expenses, which consist of operating expenses relating to
owned and controlled vessels, such as crewing, stores, repairs and
maintenance, insurance and charter hire fees for vessels that are
chartered-in, increased by $16.8 million, or 16.2%, to $120.8
million for 2010 as compared to $104.0 million for 2009. The
increase in the vessel expense in 2010 was principally due to a
17.1% increase in the vessel operating expense, which can be
attributed to higher maintenance and crew related expenses as well
as higher average number of controlled vessels during 2010 compared
to 2009. The addition of the Brazilian-flagged vessels during 2010
also contributed to this increase.
Depreciation and amortization expense increased $7.8 million due
to increased vessel improvements and, to a lesser extent, the
growth of owned and controlled fleet.
General and administrative expenses increased $12.1 million
during the year ended December 31, 2010 as compared to 2009.
Salaries and other related expenses increased $8.4 million,
primarily due to a $5.9 million non-cash compensation expense
recorded during 2010. In 2010, $1.3 million of general and
administrative expenses were incurred by Log-Star, our Brazilian
joint venture.
The operating expenses for 2010 also include a $5.2 million
charge which was recorded as net loss on sale of the vessel M/V
Savannah Belle.
Credit Facilities Amendments:
Effective January 28, 2010, TBS entered into amendments to its
credit facilities with all of its lenders, including AIG Commercial
Equipment, Commerzbank AG, Berenberg Bank and Credit Suisse and
syndicates led by Bank of America, N.A., The Royal Bank of Scotland
plc and DVB Group Merchant Bank (the "Credit Facilities"). The
amendments restructured the Company's debt obligations by revising
the principal repayment schedules under the Credit Facilities;
waiving any defaults existing at January 28, 2011; revising the
financial covenants, including covenants related to the Company's
consolidated leverage ratio, consolidated interest coverage ratio
and minimum cash balance; and modifying other terms of the Credit
Facilities.
As a condition to the restructuring of our credit facilities,
three significant shareholders who also are key members of TBS'
management agreed on January 25, 2011 to provide up to $10 million
of new equity in the form of Series B Preference Shares and
deposited funds in an escrow account to facilitate satisfaction of
this obligation. In partial satisfaction of this obligation, on
January 28, 2011, these significant shareholders purchased an
aggregate of 30,000 of our Series B Preference Shares at $100 per
share directly from TBS in a private placement.
Fleet Developments:
The TBS program to construct six "Roymar Class" 34,000 dwt
multipurpose tweendecker vessels, proceeded with the delivery of
three vessels between September 2009 and December 2010. On January
5, 2011 and February 22, 2011, TBS took delivery of the M/V Omaha
Belle and the M/V Comanche Maiden, respectively, the fourth and
fifth vessels in the series for a purchase price of $35.4 million
each. The Company expects to take delivery of the sixth vessel in
the second quarter of 2011.
With the delivery of these vessels, TBS's operational fleet
expanded to 51 vessels with an aggregate of 1.55 million dwt,
consisting of 29 tweendeckers and 22 handymax / handysize bulk
carriers.
TBS previously entered into a $150 million term loan credit
agreement with a syndicate of lenders led by The Royal Bank of
Scotland to finance the building and purchase of these six new
vessels. As of December 31, 2010, the Company made cumulative
payments of $84.0 million to the Shipyard towards the purchase of
the fourth, fifth and sixth vessels.
Drydock Program and Vessel Upgrade Program:
For the year 2010, TBS drydocked 15 vessels for approximately
399 drydocking days with steel renewal of about 1,571 metric tons
at a total cost of approximately $15.1 million. This calculation
includes two vessels that entered into drydocking during the fourth
quarter of 2009.
During the fourth quarter of 2010, three vessels entered into
drydocking for 61 days, requiring about 605 metric tons of
steel.
For 2011, TBS' plan is to drydock 17 vessels for approximately
502 days with a steel renewal of about 1,765 metric tons at a total
cost of approximately $17.5 million. This estimate includes one
vessel that entered into drydocking during the fourth quarter of
2010.
Conference call and webcast:
Tomorrow, March 15, 2011 at 10:00 a.m. EDT, the Company's
management will host a conference call to discuss the results.
Conference call details:
Participants should dial into the call 10 minutes before the
scheduled time using the following numbers: 1-888-680-0893 (from
the US) or 1-617-213-4859 (International Dial In). Participant
Passcode: 69105209. Participants may pre-register for the call at
https://www.theconferencingservice.com/prereg/key.process?key=PYPHG8YLU.
Pre-registrants will be issued a PIN number to use when dialing
into the live call which will provide quick access to the
conference by bypassing the operator upon connection.
Webcast:
There will also be live -- and then archived -- slides and audio
webcast of the conference call on the company's website
http://www.tbsship.com, which can be accessed by clicking on the
webcast link. As soon as practicable, the webcast and the
corresponding slides will be archived and will be accessible on our
website.
Replay:
A telephonic replay of the conference call will be available
from 1:00 p.m. EDT on Tuesday, March 15, 2011 until Tuesday, March
22, 2011 by dialing 1-888-286-8010 (from the US) or 1-617-801-6888
(International Dial In). Access Code: 70839930. A replay of the
webcast will be available soon after the completion of the
call.
Consolidated Statements of Income
For the three months and year ended December 31, 2010 and 2009
(In thousands, except per share amounts and outstanding shares)
Three Months Ended Year Ended
December 31, December 31,
---------------------- ----------------------
2010 2009 2010 2009
---------- ---------- ---------- ----------
Revenue
Voyage revenue $ 75,636 $ 66,563 $ 295,830 $ 247,980
Time charter revenue 22,607 16,890 105,824 51,201
Logistic revenue (1) 2,241 1,139 9,479 2,689
Other revenue 286 198 700 646
---------- ---------- ---------- ----------
Total Revenue 100,770 84,790 411,833 302,516
---------- ---------- ---------- ----------
Operating expenses
Voyage 37,644 31,266 144,533 113,084
Logistics (1) 1,571 1,018 6,543 2,193
Vessel 30,249 22,045 120,769 104,046
Depreciation and
amortization of vessels
and other fixed assets 26,785 25,801 103,637 95,870
General and
administrative 11,772 11,144 49,357 37,265
Net loss on sale of
vessel (2) - - 5,154 -
Vessels impairment (3) 201,700 - 201,700 -
---------- ---------- ---------- ----------
Total Operating
expenses 309,721 91,274 631,693 352,458
---------- ---------- ---------- ----------
(Loss) from operations (208,951) (6,484) (219,860) (49,942)
Other (expenses) and
income
Interest expense (9,310) (4,279) (27,486) (17,119)
Loss on extinguishment of
debt (4) - - (200) -
Interest and other income
(expense) (282) 63 (216) 21
---------- ---------- ---------- ----------
Total other (expenses) and
income, net (9,592) (4,216) (27,902) (17,098)
---------- ---------- ---------- ----------
Net (loss) (218,543) (10,700) (247,762) (67,040)
========== ========== ========== ==========
Less: Net (loss)
attributable to
noncontrolling
interests (5) (1,152) - (2,496) -
---------- ---------- ---------- ----------
Net (loss) attributable to
TBS International plc $ (217,391) $ (10,700) $ (245,266) $ (67,040)
========== ========== ========== ==========
Loss per share
Net (loss) per ordinary
share
Basic and Diluted $ (7.12) $ (0.36) $ (8.12) $ (2.25)
Weighted average ordinary
shares outstanding
Basic and Diluted 30,521,119 29,865,308 30,217,210 29,843,566
Operating Data for the three months and year ended
December 31, 2010 and 2009
Three Months Ended Year Ended
December 31, December 31,
2010 2009 2010 2009
Other Operating Data:
Controlled vessels (at end of
period) (6) 49 48 49 48
Chartered vessels (at end of
period) (7) 3 - 3 -
Freight Voyage days (8) 3,051 2,742 11,435 11,470
Vessel days (9) 4,725 4,416 18,359 17,567
Revenue tons carried for all
cargoes (10) 2,741 2,094 10,329 8,788
Freight rates for all cargoes
(11) $ 27.59 $ 31.79 $ 28.64 $ 28.22
Revenue tons carried other than
aggregate cargoes (10) (12) 1,190 1,215 4,706 4,727
Freight rates for other than
aggregate cargoes (11) (12) $ 53.96 $ 50.00 $ 54.30 $ 45.36
Time Charter days 1,381 1,322 5,818 4,733
Daily charter hire rates $ 16,369 $ 12,776 $ 18,189 $ 10,818
TCE per day-Freight Voyages
(13) $ 12,803 $ 13,158 $ 13,721 $ 12,069
TCE per day-Time Charters-Out
(14) $ 15,216 $ 12,184 $ 16,958 $ 10,070
(1) TBS Logistics represents revenue and related costs for cargo and
transportation management services.
(2) Represents a loss of $5.2 million on the sale of the Savannah Belle.
(3) Based on our evaluation of the events and circumstances surrounding
the valuation of our vessels during the fourth quarter of 2010,
including continued significant declines in freight and charter rates
and decreases in vessel values, we conducted an impairment analysis
of our long-lived assets as of December 31, 2010. Based on our
analysis, a $201.7 million impairment on our Vessels was recorded at
December 31, 2010. Basic and diluted earnings per ordinary share for
the year ended December 31, 2010 decreased $6.68 as a result of the
impairment charge.
(4) In 2010, the loss on extinguishment of debt represents the write-off
of unamortized deferred financing costs in connection with the loan
modifications subsequent to March 31, 2010.
(5) Represents a 30% non controlling interest held by Log-In Logistica
Intermodal S.A.
(6) Controlled vessels are vessels that are owned or chartered-in with an
option to purchase. As of December 31, 2010, two vessels in the
controlled fleet were chartered-in with an option to purchase.
(7) Represents vessels that were both chartered-in under short-term
charters (less than one year at the start of the charter) and
chartered in under long-term charters without an option to purchase.
Includes three Brazilian-flagged vessels chartered in under a bare
boat charter through our joint venture LOG.STAR NAVEGACAO S.A.
(8) Represents the number of days controlled and time-chartered vessels
were operated by the Company performing freight voyages. Freight
voyage days exclude both off-hire days and time chartered out days.
(9) Represents the number of days that relate to vessel expense for
controlled and time-chartered vessels. Vessel expense relating to
controlled vessels is based on a 365-day year. Vessel expense
relating to chartered-in vessels is based on the actual number of
days the vessel is operated, excluding off-hire days.
(10) In thousands.
(11) Freight rates are a measurement on which shipments are freighted.
Cargoes are rated as weight (based on metric tons) or measure (based
on cubic meters); whichever produces the higher revenue will be
considered the revenue ton.
(12) Aggregates represent high-volume, low-freighted cargo, which can
overstate the amount of tons that is carried on a regular basis and
accordingly reduces the revenue per ton. TBS believes that the
exclusion of aggregates better reflects cargo shipping and revenue
per ton data for principal services.
(13) Daily Time Charter Equivalent or "TCE" rates are defined as voyage
revenue less voyage expenses during the year, divided by the number
of available freight voyage days during the year. Voyage expenses
include fuel, port call, commissions, stevedore and other cargo
related and miscellaneous voyage expenses. No deduction is made
for vessel or general and administrative expenses. TCE includes the
full amount of any probable losses on voyages at the time such losses
can be estimated. TCE is an industry standard for measuring and
analyzing fluctuations between financial periods and as a method of
equating TCE revenue generated from a voyage charter to time charter
revenue.
(14) Daily Time Charter Equivalent or "TCE" rates for vessels that are
time chartered out are defined as time charter revenue during the
period reduced principally by commissions and certain voyage costs
(for which we are responsible under some time charters) divided by
the number of available time charter days during the period. Voyage
costs incurred under time charters were $2.4 million and $1.4 million
for the years ended December 31, 2010 and 2009, respectively. These
voyage costs include fuel costs (resulting from fuel price
differentials between the time a vessel was delivered out to the
charterer and the time of redelivery) and the cost for ballasting
vessels to time charter delivery ports. No deduction is made for
vessel or general and administrative expenses. Commission for
vessels that were time chartered out for the years ended December 31,
2010 and 2009 were $4.8 million and $2.1 million, respectively. TCE
is an industry standard for measuring and analyzing fluctuations
between financial periods and as a method of equating TCE revenue
generated from a voyage charter to time charter revenue.
Balance Sheet Data
Please find below TBS' selected balance sheet data:
December 31, December 31,
2010 2009
------------ ------------
Balance Sheet Data (In thousands):
Cash and cash equivalents $ 18,976 $ 51,040
Restricted cash 6,737 8,675
Working capital (deficit) (299,616) (285,823)
Total assets 686,321 953,588
Total debt 332,259 351,247
Total shareholders' equity 296,874 537,728
Non-GAAP Reconciliations
We use EBITDA as a liquidity measure. Below is a reconciliation
for the years ended December 31, 2010 and 2009 reconciling cash
flows from operations to adjusted EBITDA:
For the year ended
December 31,
--------------------
2010 2009
--------- ---------
(Numbers in thousands)
Net Cash Provided by Operating Activities $ 65,546 $ 40,117
Net loss attributed to noncontrollling interest 2,496 -
--------- ---------
Net Cash Provided by Operating Activities attributed
to TBS 68,042 40,117
Adjustments to reconcile net cash provided by
operating activities to EBITDA:
Net Interest expense excluding amortization of
finance costs and non cash change in value of swap
contracts 22,106 14,544
Drydocking expenditures 9,627 15,581
Net change in operating assets and liabilities 987 (22,366)
Non cash adjustments made to cash provided by
operating activities:
Loss on sale of vessel (5,154)
Increase in allowance for doubtful debts (1,918) (901)
Non cash stock based compensation (5,933) (1,115)
--------- ---------
Adjusted EBITDA $ 87,757 $ 45,860
========= =========
Adjusted EBITDA is defined as net loss before interest expense,
taxes, depreciation and amortization, and includes an additional
add back of the impairment loss. The calculated is as follows:
Three Months Ended Year Ended
December 31, December 31,
---------------------- ----------------------
2010 2009 2010 2009
---------- ---------- ---------- ----------
EBITDA Reconciliation (In
thousands):
Net (loss) attributable
to TBS International plc $ (217,391) $ (10,700) $ (245,266) $ (67,040)
Net interest expense 9,310 4,272 27,686 17,030
Depreciation and
Amortization 26,785 25,801 103,637 95,870
Impairment Loss 201,700 - 201,700 -
---------- ---------- ---------- ----------
EBITDA, adjusted $ 20,404 $ 19,373 $ 87,757 $ 45,860
========== ========== ========== ==========
Forward-Looking Statements "Safe Harbor" Statement under the
Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on management's current expectations and observations.
Included among the factors that, in the Company's view, could cause
actual results to differ materially from the forward-looking
statements contained in this press release are the following:
-- the effects of severe and rapid declines in industry conditions that
have required the Company to restructure its outstanding indebtedness;
-- the Company's ability to manage and repay its substantial indebtedness;
-- the Company's ability to maintain financial ratios and comply with the
financial covenants in its credit facilities;
-- the Company's ability to effectively operate its business and manage
its growth while complying with operating covenants in its credit
facilities;
-- the Company's ability to generate the significant amounts of cash
necessary to service its debt obligations;
-- very high volatility in the Company's revenues and costs, including
volatility caused by increasing oil prices;
-- excess supplies of dry bulk vessels in all classes and resulting heavy
pressure on freight rates;
-- adverse weather conditions that may significantly decrease the volume
of many dry bulk cargoes;
-- the stability and continued growth of the Asian and Latin American
economies and rising inflation in China;
-- the Company's vessels exceeding their economic useful life and the
risks associated with operating older vessels;
-- the Company's ability to grow its vessel fleet and effectively manage
its growth;
-- impairments of the Company's long lived assets or goodwill;
-- compliance with environmental laws and regulations and the
implementation of new environmental laws and regulations;
-- other factors that are described in the "Risk Factors" sections of the
Company's reports filed with the Securities and Exchange Commission.
About TBS International plc:
TBS provides worldwide shipping solutions to a diverse client
base of industrial shippers through its Five Star Service: ocean
transportation, projects, operations, port services and strategic
planning. The TBS shipping network operates liner, parcel and dry
bulk services, supported by a fleet of multipurpose tweendeckers
and handysize / handymax bulk carriers, including specialized
heavy-lift vessels and newbuild tonnage. TBS has developed its
franchise around key trade routes between Latin America and China,
Japan and South Korea, as well as select ports in North America,
Africa, the Caribbean and the Middle East. Visit our website at
http://www.tbsship.com.
For more information, please contact: Ferdinand V. Lepere Senior
Executive Vice President and Chief Financial Officer TBS
International plc Tel. 914-961-1000 InvestorRequest@tbsship.com
Investor Relations / Media: Nicolas Bornozis Capital Link, Inc. New
York Tel. 212-661-7566 E-mail: tbs@capitallink.com
Tbs International (MM) (NASDAQ:TBSI)
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