NEW YORK, March 13, 2017 /PRNewswire/ -- Gener8
Maritime, Inc. (NYSE: GNRT) ("Gener8 Maritime" or the "Company"), a
leading U.S.-based provider of international seaborne crude oil
transportation services, today announced its financial results for
the three and twelve months ended December
31, 2016.
Highlights
- Recorded net income of $5.8
million, or $0.07 basic and
diluted earnings per share, for the three months ended December 31, 2016, compared to $45.5 million or $0.55 basic and diluted earnings per share for
the same period in the prior year. Recorded adjusted net
income of $20.1 million, or
$0.24 basic and diluted adjusted
earnings per share, for the three months ended December 31, 2016, compared to $47.7 million or $0.58 basic and diluted earnings per share for
the same period in the prior year.
- Increased vessel operating days by 52.0% to 3,533 in the three
months ended December 31, 2016
compared to 2,319 in the same period in the prior year.
Increased "ECO" VLCC operating days to 77% of VLCC operating days
in the three months ended December 31,
2016, compared to 29% in the same period in the prior
year.
- Increased full fleet "ECO" operating days to 43% in the three
months ended December 31, 2016,
compared to 9% in the same period in the prior year.
- Took delivery of five "ECO" newbuilding VLCCs since the end of
the third quarter of 2016. The Gener8 Miltiades, the
Gener8 Noble and the Gener8 Theseus were
delivered during the fourth quarter of 2016, and the
Gener8 Hector and the Gener8 Ethos were
delivered subsequent to the end of the quarter.
- Sold the 2000-built Suezmax tanker Gener8 Spyridon in
December 2016 for net proceeds of
$1.8 million after prepaying
$11.7 million of associated debt.
- Sold the 2003-built VLCC tanker Gener8 Ulysses in
February 2017 for net proceeds of
$10.2 million after prepaying
$20.0 million of associated
debt.
"As we continue to receive vessels from our newbuilding program,
it becomes increasingly apparent that a two-tier market exists
favoring modern, "ECO" vessels. For the second consecutive
quarter, our "ECO" VLCCs earned between 10% and 15% more on an
average daily TCE basis than our non-"ECO" VLCCs," said
Peter Georgiopoulos, Chairman and
Chief Executive Officer of Gener8 Maritime. "We continued to
increase the modernity of our fleet with the delivery of three
"ECO" VLCCs in the fourth quarter and two "ECO" VLCCs to date in
the first quarter of 2017 and the sale of two older vessels during
the same periods. Following the completion of our newbuilding
program expected this year and assuming no further changes to our
fleet, the DWT-weighted average age of our fleet will be 4.9 years,
and our VLCCs will have an average age of just 2.7 years, giving us
the youngest and most modern VLCC fleet among our public company
peers. Marine fuel prices have been steadily increasing over
the last year, highlighting the fuel efficiency of our "ECO" design
vessels, which have quickly become a significant driver of the
favorable TCE rates we have been able to achieve in a relatively
weak rate environment. We believe this advantage will become
more pronounced over time."
Leo Vrondissis, Chief Financial Officer, added, "Following the
delivery of the Gener8 Ethos on March 9,
2017, 20 of the 21 "ECO" VLCCs from our newbuilding program
have been delivered. Based on recent valuations, the remaining
payment due on the final newbuilding VLCC is expected to be fully
covered through available borrowings. Additionally, in conjunction
with the sales of the Gener8 Spyridon and Gener8 Ulysses we have
prepaid $31.7 million of debt, which
will have a positive effect on our average vessel breakeven rates
going forward."
Fleet Performance
The average TCE rates earned by Gener8 Maritime's vessels are
detailed below:
Gener8 Maritime
Average Daily TCE Rates(1)
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
Dec-16
|
|
Dec-15
|
|
Dec-16
|
|
Dec-15
|
|
VLCC
|
|
|
|
|
|
|
|
|
Average Spot TCE
Rate
|
$36,282
|
|
$57,637
|
|
$40,130
|
|
$50,953
|
|
Average Time Charter
TC Rate
|
N/A
|
|
$37,459
|
|
$42,542
|
|
$36,839
|
|
|
|
|
|
|
|
|
|
|
SUEZMAX
|
|
|
|
|
|
|
|
|
Average Spot TCE
Rate
|
$21,095
|
|
$36,861
|
|
$26,839
|
|
$35,964
|
|
Average Time Charter
TC Rate
|
N/A
|
|
N/A
|
|
$0
|
|
$19,013
|
|
|
|
|
|
|
|
|
|
|
AFRAMAX
|
|
|
|
|
|
|
|
|
Average Spot TCE
Rate
|
$14,028
|
|
$32,227
|
|
$18,036
|
|
$30,428
|
|
Average Time Charter
TC Rate
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
PANAMAX
|
|
|
|
|
|
|
|
|
Average Spot TCE
Rate
|
$7,194
|
|
$23,146
|
|
$13,304
|
|
$22,464
|
|
Average Time Charter
TC Rate
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
HANDYMAX
|
|
|
|
|
|
|
|
|
Average Spot TCE
Rate
|
N/A
|
|
$7,326
|
|
$4,610
|
|
$15,783
|
|
Average Time Charter
TC Rate
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
FULL
FLEET
|
|
|
|
|
|
|
|
|
Average Spot TCE
Rate
|
$28,190
|
|
$40,456
|
|
$31,551
|
|
$37,019
|
|
Average Time Charter
TC Rate
|
N/A
|
|
$37,459
|
|
$42,542
|
|
$32,458
|
|
FULL FLEET TCE
Rate
|
$28,190
|
|
$40,236
|
|
$31,745
|
|
$36,590
|
|
|
|
|
|
|
|
|
|
|
(1)
Time Charter
Equivalent, or "TCE," is a measure of the average daily revenue
performance of a vessel. The Company calculates TCE by dividing net
voyage revenue by total operating days for its fleet. Net voyage
revenues are voyage revenues minus voyage expenses. The Company
evaluates its performance using net voyage revenues. The Company
believes that presenting voyage revenues, net of voyage expenses,
neutralizes the variability created by unique costs associated with
particular voyages or deployment of vessels on time charter or on
the spot market and presents a more accurate representation of the
revenues generated by its vessels. Please refer to the tables at
the end of this release for a reconciliation of TCE and net voyage
revenues to voyage revenues. Spot TCEs include all spot
voyages for the Company\'s vessels, including those that were in
Navig8 pools.
|
Fourth Quarter 2016 Results Summary
The Company recorded net income for the three months ended
December 31, 2016 of $5.8 million, or $0.07 basic and diluted earnings per share,
compared to net income of $45.5
million, or $0.55 basic and
diluted earnings per share, for the prior year period.
Adjusted net income was $20.1
million, or $0.24 basic and
diluted adjusted earnings per share, for the three months ended
December 31, 2016, compared to
adjusted net income of $47.7 million,
or $0.58 basic and diluted adjusted
income per share, for the three months ended December 31, 2015. The decrease in adjusted net
income was primarily due to an increase in interest expense, net
and depreciation and amortization expense during the three months
ended December 31, 2016 compared to
prior year period as a result of the delivery of 15 newbuilding
vessels during the year ended December 31,
2016.
The average daily spot TCE rates obtained by the Company's VLCC
fleet, including its vessels that were deployed in the Navig8
pools, were $36,282 for the three
months ended December 31, 2016 and
$40,130 for the twelve months ended
December 31, 2016. During the three
months ended December 31, 2016, the
Company's "ECO" VLCC fleet earned an average daily TCE of
$37,430, and the Company's non-"ECO"
VLCC fleet earned an average daily TCE of $32,419. The average daily TCE rate
obtained by the Company on a full-fleet basis was $28,190.
Net voyage revenue was $99.6
million for the three months ended December 31, 2016, substantially flat as compared
to $100.7 million in the prior year
period.
Direct vessel operating expenses, which include crew costs,
provisions, deck and engine stores, lubricating oil, insurance, and
maintenance and repairs, increased by $7.4
million, or 32.0%, to $30.3
million for the three months ended December 31, 2016 compared to $22.9 million for the prior year period. The
increase in direct vessel operating expenses was primarily due to
the increase by 11.2 vessels, or by 40.8%, in the average size of
the Company's fleet to 38.6 vessels for the three months ended
December 31, 2016, as compared to
27.4 vessels for the prior year period.
Navig8 charterhire expenses decreased by $4.2 million, to ($0.2)
million for the three months ended December 31, 2016 compared to $4.0 million for the prior year period. These
charterhire expenses were related to the Nave Quasar, a vessel
chartered-in, as a result of the 2015 merger. Navig8 charterhire
expenses during the three months ended December 31, 2015 included profit share
adjustments related to the profit share plan for the Nave Quasar.
In March 2016, the time charter under
which this vessel had been chartered-in expired, and the vessel was
redelivered to its owner.
General and administrative expenses decreased by $2.6 million, or 32.0%, to $5.6 million during the three months ended
December 31, 2016 compared to
$8.2 million for the prior year
period, primarily due to $2.2 million
of lower legal and other professional fees relating to, among other
things, the Company's existing credit facilities during the three
months ended December 31, 2016 as
compared to the prior year period.
Adjusted EBITDA for the three months ended December 31, 2016 was $64.3 million, compared to $64.6 million for the prior year period. Please
refer to the tables at the end of this press release for a
reconciliation of adjusted EBITDA to net income.
Depreciation and amortization expenses increased by $12.6 million, or 90.3%, to $26.6 million during the three months ended
December 31, 2016 compared to
$14.0 million for the prior year
period. Depreciation of vessel costs increased by $12.5 million, or 102.3%, to $24.6 million during the three months ended
December 31, 2016 compared to
$12.2 million for the prior year
period. This increase was primarily due to an increase in the
Company's fleet size as its newbuilding vessels were delivered (the
Company took delivery of 15 newbuilding vessels during the year
ended December 31, 2016).
Loss on disposal of vessels, net increased by $13.4 million during the three months ended
December 31, 2016 compared to
$0.6 million for the prior year
period, primarily due to losses associated with the sale of Gener8
Spyridon and the agreement to sell the Gener8 Ulysses.
Net interest expense increased by $13.5
million, to $18.3 million for
the three months ended December 31,
2016 compared to $4.8 million
for the prior year period. This increase was primarily attributable
to a decrease in the capitalization of interest expense associated
with vessel construction of $7.9
million, or 70.5%, to $3.3
million for the three months ended December 31, 2016 compared to $11.2 million for the prior year period,
primarily as a result of deliveries of the VLCC newbuildings the
Company acquired in 2015. Contributing to the increase in interest
expense, net during the three months ended December 31, 2016 was an increase in interest
expense associated with the Company's credit facilities of
$3.7 million, or 43.4%, to
$12.4 million compared to
$8.6 million for the prior year
period, primarily due to an increase in the outstanding borrowings
under these credit facilities and senior notes. The Company's
outstanding borrowings under its credit facilities and senior notes
were $1.6 billion and $1.0 billion as of December 31, 2016 and 2015, respectively.
In addition, in May 2016, the
Company entered into six interest rate swap transactions that
effectively fix the interest rate on a portion of its outstanding
variable rate debt to a range of fixed rates. During the three
months ended December 31, 2016, the
Company recorded $1.2 million related
to interest rate swap settlements as net interest expense.
As of December 31, 2016, the
Company's cash balance was $94.7
million, compared to $157.5
million as of December 31,
2015. As of December 31, 2016,
the Company's net debt (calculated as total debt less cash,
discounts and deferred financing costs) was $1.4 billion.
As of December 31, 2016, there
were 82,960,194 shares of the Company's common stock
outstanding.
Full Year 2016 Results Summary
The Company recorded net income for the year ended December 31, 2016 of $67.3
million, or $0.81 basic and
diluted earnings per share, compared to $129.6 million, or $2.06 basic and $2.05 diluted earnings per share, for the prior
year period.
The Company recorded adjusted net income of $124.8 million, or $1.51 basic and diluted adjusted earnings per
share for the year ended December 31,
2016, compared to an adjusted net income of $154.4 million or $2.46 basic and $2.45 diluted adjusted earnings per share for the
prior year period. The large decrease in voyage expenses for the
year ended December 31, 2016,
compared to the prior year period is primarily resulted from the
Company having transitioned the majority of its vessels into the
Navig8 pools where voyage expenses are borne by the pool and netted
out of monthly distributions.
Net voyage revenue increased by $57.5
million, or 17.2%, to $392.1
million for the year ended December
31, 2016 compared to $334.6
million for the prior year period. The increase in net
voyage revenues was primarily attributable to the increase in the
Company's vessel operating days as a result of the deployment of 15
additional VLCC newbuilding vessels that were delivered during the
year ended December 31, 2016.
Direct vessel operating expenses increased by $21.8 million, or 25.5%, to $107.3 million for the year ended December 31, 2016 compared to $85.5 million for the prior year period.
This increase was also primarily attributable to the increase in
the Company's vessel operating days.
Navig8 charterhire expenses decreased by $8.2 million, or 73.0%, to $3.1 million for the year ended December 31, 2016 compared to $11.3 million for the prior year period. In
March 2016, the time charter under
which the Nave Quasar, had been chartered-in expired and the vessel
was redelivered to its owner.
General and administrative expenses decreased by $8.6 million, or 23.5%, to $27.8 million for the year ended December 31, 2016 compared to $36.4 million for the prior year period. This
decrease was primarily due to a decrease in the stock-based
compensation expense of $7.3 million
during the year ended December 31,
2016 compared to the prior year period primarily
attributable to expenses recorded in 2015 for the restricted stock
units granted in connection with the Company's initial public
offering in 2015.
Adjusted EBITDA for the full year ended December 31, 2016 increased by $41.3 million, or 19.2%, to $256.5 million compared to $215.2 million for the prior year period.
Depreciation and amortization expenses increased by $39.6 million, or 83.3%, to $87.2 million for the year ended December 31, 2016 compared to $47.6 million for the prior year period.
Depreciation of vessels costs increased by $37.5 million, or 90.1%, to $79.1 million for the year ended December 31, 2016 compared to $41.6 million for the prior year period. The
increase in vessel depreciation and amortization of drydocking
costs was primarily due to the increase in the Company's fleet size
and the additional drydocking costs incurred for the year ended
December 31, 2016 as compared to the
prior year period. The Company took delivery of 15 newbuilding
vessels during the year ended December 31,
2016.
The Company recorded a goodwill impairment of $26.3 million during the year ended December 31, 2016. As a result of the goodwill
impairment test performed, it was determined that the carrying
value for each reporting unit was higher than its fair value and
therefore goodwill was fully impaired, which resulted in a
write-off of $23.3 million for the
year ended December 31, 2016.
Additionally, for the year ended December
31, 2016, in connection with the sale of the Genmar Victory
and Genmar Vision, the Company wrote-off $3.0 million of related goodwill. During the year
ended December 31, 2015, the Company
recorded a loss of approximately $0.5
million related to the sale of the Gener8 Consul to reflect
the difference between the fair value (less selling expenses) of
the disposed vessel and its recorded value. The transaction closed
in the first quarter of 2016.
Losses on disposal of vessels, net increased by $23.4 million to $24.2
million during the year ended December 31, 2016 compared to $0.8 million for the prior year period, primarily
due to losses on the sale of the Genmar Victory, Genmar Vision, and
Gener8 Spyridon, as well as the Gener8 Ulysses (which was recorded
as assets held for sale as of December 31,
2016 and sold in February
2017). Additionally, during the year ended December 31, 2016, following the liquidation of
foreign subsidiaries, the Company recorded a $0.8 million gain related to the write-off of the
accumulated translation adjustment component of equity.
Interest expense, net increased by $33.6
million to $49.6 million
during the year ended December 31,
2016 compared to $16.0 million
for the prior year period. The increase was primarily attributable
to the increase in interest expense associated with the Company's
credit facilities and senior notes of $11.0
million, or 38.5%, to $39.5
million compared to $28.5
million for the prior year period due to the increase in
outstanding borrowings. The Company's outstanding borrowings under
its credit facilities and senior notes were $1.6 billion and $1.0
billion as of December 31,
2016 and 2015, respectively. Contributing to the increase in
interest expense, net during the year ended December 31, 2016, was the reduction in
capitalized interest of $7.6 million,
or 21.5%, to $27.6 million compared
to $35.2 million for the prior year
period related to the capitalization of interest expense associated
with vessels under construction. Capitalized interest results in a
reduction of interest expense, net. The Company does not capitalize
interest expense associated with the funding of its VLCC
newbuildings after delivery of the vessels. Also contributing to
the increase in interest expense, net were increases in
amortization of deferred financing costs of $7.9 million to $11.3
million for the year ended December
31, 2016 compared to $3.4
million for the prior year period, and commitment fees of
$2.5 million, or 91.7% to
$5.2 million for the year ended
December 31, 2016 compared to
$2.7 million for prior year period.
The Company incurred these additional deferred financing costs and
commitment fees in connection with the Company's entry into the
Amended Sinosure Credit Facility and the Korean Export Credit
Facility, which the Company has used to fund a portion of the
remaining installment payments due under the acquired VLCC
Newbuilding contracts. In addition, in May
2016, the Company entered into six interest rate swap
transactions that effectively fix the interest rate on a portion of
its outstanding variable rate debt to a range of fixed rates.
During the year ended December 31,
2016, the Company recorded $2.7
million related to interest rate swaps settlements as
interest expense, net.
During the year ended December 31,
2015, in connection with the consummation of the merger with
Navig8 Crude Tankers and pursuant to an equity purchase agreement
entered into in connection with the merger, the Company issued an
aggregate of 483,970 shares to the commitment parties as a
commitment premium as consideration for their purchase commitments
under such agreement. The commitment to purchase the Company's
common stock by the commitment parties was terminated upon the
consummation of the Company's initial public offering, and the
related expenses of $6.0 million,
representing the value of the commitment premium as of the issuance
date, were reflected as other financing costs. There were no such
expenses in the current year period.
The Company recognized $0.7
million of earnings as other (expense) income, net during
the year ended December 31, 2016
related to the impact of its interest rate swap agreements, entered
in 2016. There were no such expenses in the prior year period.
Gener8 Maritime Fleet Profile (as of March 13, 2017)
Vessels on the
Water
|
|
|
|
|
|
|
|
|
|
Type
|
|
Vessel
Name
|
|
DWT
|
|
Year
Built
|
|
Employment
|
|
|
|
|
|
|
|
|
|
|
1
|
VLCC
|
|
Gener8
Ethos
|
|
298,991
|
|
2017
|
|
VL8 Pool
|
2
|
VLCC
|
|
Gener8
Hector
|
|
297,363
|
|
2017
|
|
VL8 Pool
|
3
|
VLCC
|
|
Gener8
Theseus
|
|
299,392
|
|
2016
|
|
VL8 Pool
|
4
|
VLCC
|
|
Gener8
Noble
|
|
298,991
|
|
2016
|
|
VL8 Pool
|
5
|
VLCC
|
|
Gener8
Miltiades
|
|
301,038
|
|
2016
|
|
VL8 Pool
|
6
|
VLCC
|
|
Gener8
Oceanus
|
|
299,011
|
|
2016
|
|
VL8 Pool
|
7
|
VLCC
|
|
Gener8
Perseus
|
|
299,392
|
|
2016
|
|
VL8 Pool
|
8
|
VLCC
|
|
Gener8
Macedon
|
|
298,991
|
|
2016
|
|
VL8 Pool
|
9
|
VLCC
|
|
Gener8
Chiotis
|
|
300,973
|
|
2016
|
|
VL8 Pool
|
10
|
VLCC
|
|
Gener8
Constantine
|
|
299,011
|
|
2016
|
|
VL8 Pool
|
11
|
VLCC
|
|
Gener8
Andriotis
|
|
301,014
|
|
2016
|
|
VL8 Pool
|
12
|
VLCC
|
|
Gener8
Apollo
|
|
301,417
|
|
2016
|
|
VL8 Pool
|
13
|
VLCC
|
|
Gener8
Ares
|
|
301,587
|
|
2016
|
|
VL8 Pool
|
14
|
VLCC
|
|
Gener8
Hera
|
|
301,619
|
|
2016
|
|
VL8 Pool
|
15
|
VLCC
|
|
Gener8
Nautilus
|
|
298,991
|
|
2016
|
|
VL8 Pool
|
16
|
VLCC
|
|
Gener8
Success
|
|
300,932
|
|
2016
|
|
VL8 Pool
|
17
|
VLCC
|
|
Gener8
Supreme
|
|
300,933
|
|
2016
|
|
VL8 Pool
|
18
|
VLCC
|
|
Gener8
Athena
|
|
299,999
|
|
2015
|
|
VL8 Pool
|
19
|
VLCC
|
|
Gener8
Strength
|
|
300,960
|
|
2015
|
|
VL8 Pool
|
20
|
VLCC
|
|
Gener8
Neptune
|
|
299,999
|
|
2015
|
|
VL8 Pool
|
21
|
VLCC
|
|
Genmar
Zeus
|
|
318,325
|
|
2010
|
|
VL8 Pool
|
22
|
VLCC
|
|
Gener8
Atlas
|
|
306,005
|
|
2007
|
|
VL8 Pool
|
23
|
VLCC
|
|
Gener8
Hercules
|
|
306,543
|
|
2007
|
|
VL8 Pool
|
24
|
VLCC
|
|
Gener8
Poseidon
|
|
305,795
|
|
2002
|
|
VL8 Pool
|
25
|
Suezmax
|
|
Gener8
Spartiate
|
|
164,925
|
|
2011
|
|
Suez8 Pool
|
26
|
Suezmax
|
|
Gener8
Maniate
|
|
164,715
|
|
2010
|
|
Suez8 Pool
|
27
|
Suezmax
|
|
Gener8 St.
Nikolas
|
|
149,876
|
|
2008
|
|
Suez8 Pool
|
28
|
Suezmax
|
|
Gener8 Kara
G
|
|
150,296
|
|
2007
|
|
Suez8 Pool
|
29
|
Suezmax
|
|
Gener8 George
T
|
|
149,847
|
|
2007
|
|
Suez8 Pool
|
30
|
Suezmax
|
|
Gener8 Harriet
G
|
|
150,296
|
|
2006
|
|
Suez8 Pool
|
31
|
Suezmax
|
|
Gener8
Orion
|
|
159,992
|
|
2002
|
|
Suez8 Pool
|
32
|
Suezmax
|
|
Gener8
Argus
|
|
159,999
|
|
2000
|
|
Suez8 Pool
|
33
|
Suezmax
|
|
Gener8
Horn
|
|
159,475
|
|
1999
|
|
Suez8 Pool
|
34
|
Suezmax
|
|
Gener8
Phoenix
|
|
153,015
|
|
1999
|
|
Suez8 Pool
|
35
|
Aframax
|
|
Gener8
Pericles
|
|
105,674
|
|
2003
|
|
V8 Pool
|
36
|
Aframax
|
|
Gener8
Daphne
|
|
106,560
|
|
2002
|
|
V8 Pool
|
37
|
Aframax
|
|
Gener8
Elektra
|
|
106,560
|
|
2002
|
|
V8 Pool
|
38
|
Aframax
|
|
Gener8
Defiance
|
|
105,538
|
|
2002
|
|
V8 Pool
|
39
|
Panamax
|
|
Gener8
Companion
|
|
72,749
|
|
2004
|
|
Spot
|
40
|
Panamax
|
|
Genmar
Compatriot
|
|
72,749
|
|
2004
|
|
Spot
|
|
Vessels on the
Water Total
|
|
9,369,538
|
|
|
|
|
Newbuildings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Type
|
|
Vessel
Name
|
|
DWT
|
|
Yard
|
|
Delivery
Date
|
1
|
VLCC
|
|
Gener8
Nestor
|
|
300,000
|
|
HAN
|
|
Jul-17
|
Financial Information
Consolidated Statements of Operations for the Three Months
and Years ended December 31, 2016 and
2015
|
For the Three
Months
|
|
For the
Years
|
(Dollars in
thousands, except per share data)
|
Ended December
31,
|
|
Ended December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
VOYAGE
REVENUES:
|
|
|
|
|
|
|
|
Navig8 pool
revenues
|
$
|
97,929
|
|
$
|
89,429
|
|
$
|
368,889
|
|
$
|
149,642
|
Time charter
revenues
|
-
|
|
7,059
|
|
9,278
|
|
28,707
|
Spot charter
revenues
|
4,432
|
|
6,272
|
|
26,455
|
|
251,584
|
Total voyage
revenues
|
102,361
|
|
102,760
|
|
404,622
|
|
429,933
|
Voyage
expenses
|
2,780
|
|
2,103
|
|
12,490
|
|
95,306
|
Net voyage
revenues
|
99,581
|
|
100,657
|
|
392,132
|
|
334,627
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
Direct vessel
operating expenses
|
30,267
|
|
22,938
|
|
107,308
|
|
85,521
|
Navig8 charterhire
expenses
|
(181)
|
|
4,037
|
|
3,059
|
|
11,324
|
General and
administrative
|
5,604
|
|
8,235
|
|
27,844
|
|
36,379
|
Depreciation and
amortization
|
26,569
|
|
13,962
|
|
87,191
|
|
47,572
|
Goodwill
impairment
|
-
|
|
-
|
|
23,297
|
|
-
|
Loss on impairment of
vessels held for sale
|
-
|
|
520
|
|
-
|
|
520
|
Goodwill write-off
for sales of vessels
|
-
|
|
-
|
|
2,994
|
|
-
|
Loss on disposal of
vessels, net
|
13,992
|
|
557
|
|
24,169
|
|
805
|
Closing of Portugal
office
|
-
|
|
-
|
|
-
|
|
507
|
Total operating
expenses
|
76,251
|
|
50,249
|
|
275,862
|
|
182,628
|
|
|
|
|
|
|
|
|
OPERATING (LOSS)
INCOME
|
$
|
23,330
|
|
$
|
50,408
|
|
$
|
116,270
|
|
$
|
151,999
|
|
|
|
|
|
|
|
|
OTHER
EXPENSES:
|
|
|
|
|
|
|
|
Interest expense,
net
|
(18,272)
|
|
(4,849)
|
|
(49,627)
|
|
(15,982)
|
Other financing
costs
|
1
|
|
(4)
|
|
(7)
|
|
(6,044)
|
Other income
(expense), net
|
745
|
|
(34)
|
|
670
|
|
(404)
|
Total other
expenses
|
(17,526)
|
|
(4,887)
|
|
(48,964)
|
|
(22,430)
|
NET (LOSS)
INCOME
|
$
|
5,804
|
|
$
|
45,521
|
|
$
|
67,306
|
|
$
|
129,569
|
|
|
|
|
|
|
|
|
(LOSS) INCOME PER
COMMON SHARE
|
|
|
|
|
|
|
|
Basic
|
$
|
0.07
|
|
$
|
0.55
|
|
$
|
0.81
|
|
$
|
2.06
|
Diluted
|
$
|
0.07
|
|
$
|
0.55
|
|
$
|
0.81
|
|
$
|
2.05
|
Selected Balance Sheet Data
|
|
|
|
December
31,
|
|
December
31,
|
BALANCE SHEET
DATA, at end of period
|
2016
|
|
2015
|
(Dollars in
thousands)
|
|
|
|
|
Cash & cash
equivalents
|
$
94,681
|
|
$
157,535
|
|
Current assets,
including cash
|
215,285
|
|
258,128
|
Total
assets
|
2,992,669
|
|
2,389,746
|
|
Current liabilities,
incl. current portion of LTD
|
216,566
|
|
268,615
|
|
Current portion of
LTD
|
181,023
|
|
135,367
|
Total LTD, incl.
current portion, excl. discount
|
1,581,951
|
|
957,054
|
and deferred
financing costs(1)
|
|
Shareholders'
equity
|
1,437,411
|
|
1,347,761
|
|
|
|
|
(1)
Please refer to the tables at the end of this release for a
reconciliation to total long-term debt
|
Reconciliation Tables
EBITDA represents net income (loss) plus net interest expense
and depreciation and amortization. Adjusted EBITDA represents
EBITDA adjusted to exclude the items set forth in the table below,
which represent certain non-cash, one-time and other items that the
Company's believes are not indicative of the ongoing performance of
its core operations. Adjusted Net Income represents Net Income
adjusted to exclude the same non-cash, one-time and other items, as
well as commitment fees. EBITDA, Adjusted EBITDA and Adjusted Net
Income are included in this presentation because they are used by
management and certain investors as measures of operating
performance. EBITDA, Adjusted EBITDA and Adjusted Net Income are
used by analysts in the shipping industry as common performance
measures to compare results across peers. EBITDA, Adjusted EBITDA
and Adjusted Net Income are not items recognized by accounting
principles generally accepted in the
United States of America ("GAAP"), and should not be
considered in isolation or used as alternatives to net income,
operating income, cash flow from operating activity or any other
indicator of the Company's operating performance or liquidity
required by GAAP. The Company's presentation of EBITDA, Adjusted
EBITDA and Adjusted Net Income is intended to supplement investors'
understanding of its operating performance by providing information
regarding its ongoing performance that exclude items the Company
believes do not directly affect its core operations and enhancing
the comparability of its ongoing performance across periods. The
Company presents Adjusted EBITDA and Adjusted Net Income in
addition to EBITDA and Net Income because Adjusted EBITDA and
Adjusted Net Income eliminate the impact of additional non-cash,
one-time and other items not associated with the ongoing
performance of its core operations, including charges associated
with stock-based compensation, gains and losses on the sale of
vessels and costs associated with its financing activities, that
the Company believes further reduce the comparability of the
ongoing performance of its core operations across periods. The
Company's management considers EBITDA, Adjusted EBITDA and Adjusted
Net Income to be useful to investors because such performance
measures provide information regarding the profitability of its
core operations and facilitate comparison of its operating
performance to the operating performance of the Company's peers.
Additionally, the Company's management uses EBITDA, Adjusted EBITDA
and Adjusted Net Income as performance measures and they are also
presented for review at the Company's board meetings. While the
Company believes these measures are useful to investors, the
definitions of EBITDA, Adjusted EBITDA and Adjusted Net Income used
here may not be comparable to similar measures used by other
companies. In addition, these definitions are also not the same as
the definition of EBITDA, Adjusted EBITDA and Adjusted Net Income
used in the financial covenants in the Company's debt instruments.
During the year ended December 31,
2016, the Company included in Adjusted Net Income and
Adjusted EBITDA Impact of interest rate swaps fair value and
Professional fees related to interest swaps due to its entry into
interest rate swaps during the period.
Please see below for a reconciliation of the following adjusted
amounts to Net Income (dollars in thousands)
|
Three Months
Ended
|
|
Years
Ended
|
|
Dec-16
|
|
Dec-15
|
|
Dec-16
|
|
Dec-15
|
Net (Loss)
Income
|
$
|
5,804
|
|
$
|
45,521
|
|
$
|
67,306
|
|
$
|
129,569
|
|
|
|
|
|
|
|
|
+ Goodwill
Impairment
|
-
|
|
-
|
|
23,297
|
|
-
|
+ Loss on impairment
of vessels held for sale
|
-
|
|
520
|
|
-
|
|
520
|
+ Stock-based
compensation expense
|
1,352
|
|
635
|
|
5,651
|
|
12,243
|
+ Loss on disposal of
vessels, net
|
13,992
|
|
557
|
|
24,169
|
|
805
|
+ Goodwill write-off
for sales of vessels
|
-
|
|
-
|
|
2,994
|
|
-
|
+ Closing of Portugal
office
|
-
|
|
-
|
|
-
|
|
507
|
+ Other financing
costs
|
(1)
|
|
4
|
|
7
|
|
6,044
|
+ Professional fees
related to interest rate swaps
|
-
|
|
-
|
|
327
|
|
-
|
+ Commitment
Fees
|
654
|
|
1,905
|
|
5,201
|
|
2,713
|
+ Impact of interest
rate swaps fair value
|
(698)
|
|
-
|
|
(698)
|
|
-
|
+ Non-cash G&A
expenses, excluding stock-based compensation (1)
|
(1,025)
|
|
(1,428)
|
|
(3,414)
|
|
1,980
|
Net (Loss) Income,
adjusted
|
$
|
20,078
|
|
$
|
47,714
|
|
$
|
124,840
|
|
$
|
154,381
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding, basic, in thousands
|
82,776
|
|
82,280
|
|
82,705
|
|
62,779
|
Weighted average
shares outstanding, diluted, in thousands
|
82,776
|
|
82,778
|
|
82,705
|
|
63,113
|
|
|
|
|
|
|
|
|
Basic net (loss)
income per share, adjusted
|
$
|
0.24
|
|
$
|
0.58
|
|
$
|
1.51
|
|
$
|
2.46
|
Diluted net (loss)
income per share, adjusted
|
$
|
0.24
|
|
$
|
0.58
|
|
$
|
1.51
|
|
$
|
2.45
|
|
Three Months
Ended
|
|
Years
Ended
|
|
Dec-16
|
|
Dec-15
|
|
Dec-16
|
|
Dec-15
|
Net (Loss)
Income
|
$
|
5,804
|
|
$
|
45,521
|
|
$
|
67,306
|
|
$
|
129,569
|
+ Interest expense,
net
|
18,272
|
|
4,849
|
|
49,627
|
|
15,982
|
+ Depreciation and
amortization
|
26,569
|
|
13,962
|
|
87,191
|
|
47,572
|
EBITDA
|
$
|
50,645
|
|
$
|
64,332
|
|
$
|
204,124
|
|
$
|
193,123
|
|
|
|
|
|
|
|
|
+ Goodwill
Impairment
|
-
|
|
-
|
|
23,297
|
|
-
|
+ Loss on impairment
of vessels held for sale
|
-
|
|
520
|
|
-
|
|
520
|
+ Goodwill write-off
for sales of vessels
|
-
|
|
-
|
|
2,994
|
|
-
|
+ Stock-based
compensation expense
|
1,352
|
|
635
|
|
5,651
|
|
12,243
|
+ Loss on disposal of
vessels, net
|
13,992
|
|
557
|
|
24,169
|
|
805
|
+ Closing of Portugal
office
|
-
|
|
-
|
|
-
|
|
507
|
+ Other financing
costs
|
(1)
|
|
4
|
|
7
|
|
6,044
|
+ Professional fees
related to interest rate swaps
|
-
|
|
-
|
|
327
|
|
-
|
+ Impact of interest
rate swaps fair value
|
(698)
|
|
-
|
|
(698)
|
|
-
|
+ Non-cash G&A
expenses, excluding stock-based compensation (1)
|
(1,025)
|
|
(1,428)
|
|
(3,414)
|
|
1,980
|
EBITDA,
adjusted
|
$
|
64,265
|
|
$
|
64,620
|
|
$
|
256,457
|
|
$
|
215,222
|
(1) Non-cash G&A expenses, excluding stock-based
compensation expense, include accounts receivable reserves,
amortization of lease assets that were recorded in connection with
fresh start accounting and amortization of straight line rent
expense. The presentation of prior year amounts have been conformed
to the current year presentation.
Long-term debt reconciliation table
Please see below
for a reconciliation of the following adjusted amounts to long-term
debt (dollars in thousands)
Reconciliation of
total long-term debt
|
December
31,
|
|
December
31,
|
2016
|
|
2015
|
Long-term debt
|
$
1,400,928
|
|
$
821,687
|
Current portion of long-term debt
|
181,023
|
|
135,367
|
Total long-term
debt, incl. current portion,
|
$
1,581,951
|
|
$
957,054
|
excl.
discount and deferred financing costs
|
|
Net Voyage Revenue & Operating Days Reconciliation
Tables
Gener8 Maritime
Net Voyage Revenue & Operating Days
|
|
|
|
|
|
|
(Dollars in
thousands, except Operating Days data)
|
Three Months
Ended
|
|
Year
Ended
|
|
|
Dec-16
|
|
Dec-15
|
|
Dec-16
|
|
Dec-15
|
|
VLCC
|
|
|
|
|
|
|
|
|
ECO Fleet Net Voyage
Revenue (1)
|
$
|
57,325
|
|
$
|
13,274
|
|
$
|
163,935
|
|
$
|
14,429
|
|
ECO Fleet Operating
Days (1)
|
1,532
|
|
211
|
|
4,067
|
|
231
|
|
Non-ECO Fleet Net
Voyage Revenue (1)
|
$
|
14,763
|
|
$
|
29,105
|
|
$
|
79,382
|
|
$
|
99,738
|
|
Non-ECO Fleet
Operating Days (1)
|
455
|
|
524
|
|
1,984
|
|
2,010
|
|
Spot Charter &
Navig8 Pool Net Voyage Revenues
|
$
|
72,088
|
|
$
|
42,379
|
|
$
|
243,317
|
|
$
|
114,167
|
|
Spot Charter &
Navig8 Pool Operating Days
|
1,987
|
|
735
|
|
6,051
|
|
2,241
|
|
Time Charter
Revenue
|
$
|
-
|
|
$
|
6,857
|
|
$
|
9,278
|
|
$
|
23,929
|
|
Time Charter
Operating Days
|
-
|
|
183
|
|
218
|
|
650
|
|
|
|
|
|
|
|
|
|
|
SUEZMAX
|
|
|
|
|
|
|
|
|
Spot Charter &
Navig8 Pool Net Voyage Revenues
|
$
|
21,030
|
|
$
|
34,656
|
|
$
|
104,516
|
|
$
|
127,939
|
|
Spot Charter &
Navig8 Pool Operating Days
|
997
|
|
940
|
|
3,894
|
|
3,557
|
|
Time Charter
Revenue
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
4,024
|
|
Time Charter
Operating Days
|
-
|
|
-
|
|
-
|
|
212
|
|
|
|
|
|
|
|
|
|
|
AFRAMAX
|
|
|
|
|
|
|
|
|
Spot Charter &
Navig8 Pool Net Voyage Revenues
|
$
|
5,163
|
|
$
|
11,832
|
|
$
|
25,730
|
|
$
|
42,611
|
|
Spot Charter &
Navig8 Pool Operating Days
|
368
|
|
367
|
|
1,427
|
|
1,400
|
|
|
|
|
|
|
|
|
|
|
PANAMAX
|
|
|
|
|
|
|
|
|
Spot Charter
Revenue
|
$
|
1,300
|
|
$
|
4,259
|
|
$
|
9,595
|
|
$
|
16,209
|
|
Spot Operating
Days
|
181
|
|
184
|
|
1,427
|
|
1,400
|
|
|
|
|
|
|
|
|
|
|
HANDYMAX
|
|
|
|
|
|
|
|
|
Spot Charter
Revenue
|
$
|
-
|
|
$
|
674
|
|
$
|
192
|
|
$
|
5,747
|
|
Spot Operating
Days
|
-
|
|
92
|
|
42
|
|
364
|
|
|
|
|
|
|
|
|
|
Gener8 Maritime
Full Fleet Net Voyage Revenues
|
|
|
|
|
|
|
(Dollars in
thousands)
|
Three Months
Ended
|
|
Year
Ended
|
|
|
Dec-16
|
|
Dec-15
|
|
Dec-16
|
|
Dec-15
|
|
Total Voyage
Revenues
|
$
|
102,361
|
|
$
|
102,760
|
|
$
|
404,622
|
|
$
|
429,933
|
|
Total Voyage
Expenses
|
2,780
|
|
2,103
|
|
12,490
|
|
95,306
|
|
Total Net Voyage
Revenues
|
$
|
99,581
|
|
$
|
100,658
|
|
$
|
392,628
|
|
$
|
334,626
|
|
(1) Includes all spot
voyages for the Company's vessels, including those that were in the
Navig8 Pools.
|
Conference Call Information
A conference call to discuss the results will be held today,
March 13, 2017 at 8:00 a.m. ET. The conference call can be accessed
live by dialing 1-844-802-2435, or for international callers,
1-412-317-5128, and requesting to be joined into the Gener8
Maritime call. A replay will be available at 11:00 a.m. ET and can be accessed by dialing
1-877-344-7529 or for international callers, 1-412-317-0088. The
pass code for the replay is 10102604. The replay will be available
until March 20, 2017.
A live webcast of the conference call will also be available
under the Investor Relations section at www.gener8maritime.com. The
Company plans to place additional materials related to the earnings
announcement, including a slide presentation, on its website prior
to the conference call.
About Gener8 Maritime
As of March 13, 2017, Gener8 Maritime has a fleet of 41
wholly-owned vessels comprised of 25 VLCCs, including one
newbuilding, 10 Suezmaxes, four Aframaxes, and two Panamax
tankers. On a fully-delivered basis, Gener8 Maritime's fleet
has a total carrying capacity of approximately 9.7 million
deadweight tons ("DWT") and an average age of less than 5 years on
a DWT basis. Gener8 Maritime is incorporated under the laws of the
Marshall Islands and headquartered
in New York.
Website Information
The Company intends to use its
website, www.gener8maritime.com, as a means of disclosing material
non-public information and for complying with its disclosure
obligations under Regulation FD. Such disclosures will be included
in its website's Investor Relations section. Accordingly, investors
should monitor the Investor Relations portion of the Company's
website, in addition to following its press releases, filings with
the Securities and Exchange Commission (the "SEC"), public
conference calls, and webcasts. To subscribe to the Company's
e-mail alert service, please click the "Investor Alerts" link in
the Investors section of the Company's website and submit your
email address. The information contained in, or that may be
accessed through, the Company's website is not incorporated by
reference into or a part of this document or any other report or
document the Company files with or furnish to the SEC, and any
references to the Company's website are intended to be inactive
textual references only.
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.
Such forward-looking statements are not historical facts and are
based on management's current beliefs, expectations, estimates and
projections about future events, many of which, by their nature,
are inherently uncertain and beyond the Company's control. 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: (i) loss or
reduction in business from the significant customers of the
Company's or of the commercial pools in which the Company
participates; (ii) changes in the values of the Company's vessels,
newbuildings or other assets; (iii) the failure of the Company's
significant customers, shipyards, pool managers or technical
managers to perform their obligations owed to the Company; (iv) the
loss or material downtime of significant vendors and service
providers; (v) the Company's failure, or the failure of the
commercial managers of any pools in which the Company's vessels
participate, to successfully implement a profitable chartering
strategy; (vi) termination or change in the nature of the Company's
relationship with any of the commercial pools in which it
participates; (vii) changes in demand for the Company's services;
(viii) a material decline or prolonged weakness in rates in the
tanker market; (ix) changes in production of or demand for oil
and petroleum products, generally or in particular regions;
(x) greater than anticipated levels of tanker newbuilding
orders or lower than anticipated rates of tanker scrapping; (xi)
adverse weather and natural disasters, acts of piracy, terrorist
attacks and international hostilities and instability; (xii)
changes in rules and regulations applicable to the tanker industry,
including, without limitation, legislation adopted by international
organizations such as the International Maritime Organization and
the European Union or by individual countries; (xiii) actions taken
by regulatory authorities; (xiv) actions by the courts, the U.S.
Coast Guard, the U.S. Department of Justice or other governmental
authorities and the results of the legal proceedings to which the
Company or any of its vessels may be subject; (xv) changes in
trading patterns significantly impacting overall tanker tonnage
requirements; (xvi) any non-compliance with the U.S. Foreign
Corrupt Practices Act of 1977 or other applicable regulations
relating to bribery; (xvii) the highly cyclical nature of the
oil-shipping industry; (xviii) changes in the typical seasonal
variations in tanker charter rates; (xix) changes in the cost of
other modes of oil transportation; (xx) changes in oil
transportation technology; (xxi) increases in costs including
without limitation: crew wages, insurance, provisions, repairs and
maintenance; (xxii) changes in general political conditions;
(xxiii) the adequacy of insurance to cover the Company's losses,
including in connection with maritime accidents or spill events;
(xxiv) changes in the condition of the Company's vessels or
applicable maintenance or regulatory standards (which may affect,
among other things, the Company's anticipated drydocking or
maintenance and repair costs); (xxv) changes in the itineraries of
the Company's vessels; (xxvi) adverse changes in foreign currency
exchange rates affecting the Company's expenses; (xxvii) the
fulfillment of the closing conditions under, or the execution of
customary additional documentation for, the Company's agreements to
acquire vessels and borrow under its existing financing
arrangements; (xxviii) the effect of the Company's indebtedness on
its ability to finance operations, pursue desirable business
operations and successfully run its business in the future; (xxix)
financial market conditions; (xxx) sourcing, completion and funding
of financing on acceptable terms; (xxxi) the Company's ability to
generate sufficient cash to service its indebtedness and comply
with the covenants and conditions under the Company's debt
obligations; (xxxii) the impact of electing to take advantage of
certain exemptions applicable to emerging growth companies; and
(xxxiii) other factors listed from time to time in the Company's
filings with SEC, including, without limitation, the Company's
Annual Report on Form 10-K for the fiscal year ended
December 31, 2015 and its subsequent reports on Form 10-Q and
Form 8-K. Accordingly the reader is cautioned not to place undue
reliance on forward-looking statements, which speak only as of the
date on which they are made. The Company does not undertake any
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, or
otherwise.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/gener8-maritime-inc-announces-fourth-quarter-2016-financial-results-300422318.html
SOURCE Gener8 Maritime, Inc.