Global Ship Lease, Inc. (NYSE: GSL)(NYSE: GSL.U)(NYSE: GSL.WS), a
containership charter owner, announced today its unaudited results
for the three months ended March 31, 2009.
First Quarter and Year-to-Date 2009 Highlights
- Paid a fourth quarter 2008 dividend of $0.23 per share on
March 5, 2009 to Class A common shareholders and unit holders and
Class B common shareholders of record as of February 20, 2009
- Generated $15.3 million of cash available for common dividends
in the first quarter of 2009
- Reported revenue of $35.0 million for the first quarter of
2009
- Reported normalized net earnings of $6.8 million, or $0.13 per
share, for the first quarter of 2009, excluding a $4.3 million
non-cash interest rate derivative mark-to-market gain
- Including non-cash charges, reported net income of $11.2
million, or $0.21 per share, for the first quarter of 2009
- Obtained in April 2009 a waiver from loan-to-value tests until
June 30, 2009 under $800 million credit facility to improve
financial flexibility; no common dividends can be declared or paid
during the waiver period
Ian Webber, Chief Executive Officer of Global Ship Lease,
stated, "We are pleased to have achieved revenue and earnings
growth in this challenging economic environment. During the
quarter, Global Ship Lease once again performed as anticipated,
generating strong revenues and predictable cash flows, further
demonstrating the successful implementation of our established
strategy of securing all of our vessels on long-term contracts.
Notably, the four additional vessels we purchased in December of
2008 that expanded our modern fleet to 16 vessels and increased our
contracted revenue stream to $1.6 billion, contributed $11.0
million of revenue in the first quarter. Our entire operating fleet
is now secured on contracts that have an average remaining term of
approximately 10 years, all of which continue to perform as
expected with all charter payments up-to-date. In addition, we
continue to work closely with our ship manager to prudently control
costs and have now held operating expenses under the capped amount
in our management agreement for three straight quarters."
Mr. Webber continued, "During a time when many ship brokers have
suspended issuing valuations due to limited market transparency and
liquidity, we secured an agreement to waive for two months the
requirement under the credit facility to submit vessel valuations
on April 30, 2009. We are in active discussions with our lenders
and remain committed to working with them to finalize an amendment
to the credit facility by June 30, 2009."
Results for Three Months Ended March 31, 2009
Comparative financial information for the three months ended
March 31, 2008 is prepared under predecessor accounting rules and
includes the results of operations of some of the vessels when they
were owned by CMA CGM, a privately owned French container shipping
company, and operated in CMA CGM's business of earning revenue from
carrying cargo. Global Ship Lease commenced its business of time
chartering out vessels in December 2007 when it purchased 10
container vessels from CMA CGM. The Company purchased two
additional vessels from CMA CGM in January 2008. The predecessor
and Global Ship Lease business models are not comparable.
Further, there were significant changes to the Company's legal
and capital structure arising from the merger on August 14, 2008,
which resulted in the Company being listed on the New York Stock
Exchange. Accordingly, only selected comparative information is
presented.
Revenue for the three months ended March 31, 2009, as reported
in our unaudited interim combined financial information, was $35.0
million compared to time charter revenue in the comparative period
of $21.8 million. The significant increase is due primarily to the
inclusion of four additional vessels from December 2008. Normalized
net earnings were $6.8 million after adjusting for a non cash
mark-to-market gain of $4.3 million on our interest rate
derivatives. The reported net income was $11.2 million.
SELECTED FINANCIAL DATA - UNAUDITED
(thousands of U.S. dollars except per share data)
Three Three
months months
ended ended
March 31, March 31,
2009 2008
------------------------------------------------------------------------
Revenue (1) 35,008 21,822
Operating Income (1) 13,416 9,234
Net Income (1) 11,153 1,286
Earnings per A and B share (2) 0.21 -
Normalised net earnings (2)(3) 6,844 -
Normalised earnings per A and B share (2)(3) 0.13 -
Cash available for distribution (2)(3) 15,302 -
(1) Comparative data for the three months ended March 31, 2008 relates to
the time charter business of the Company only and excludes the
results from the containerized transportation undertaken by the
predecessor group.
(2) Comparative data is not presented due to the significant changes to
the legal and capital structure arising from the merger on August
14, 2008 resulting in the Company being listed on the New York Stock
Exchange.
(3) Normalized net earnings, normalized earnings per share, and cash
available for distribution are non-U.S. Generally Accepted Accounting
Principles (US GAAP) measures, as explained further in this press
release and a reconciliation is provided to the interim unaudited
financial information.
Revenue and Utilization
Global Ship Lease owned sixteen vessels throughout the first
quarter of 2009. The fleet generated revenue from fixed rate
long-term time charters of $35.0 million in the three months ended
March 31, 2009, up significantly from time charter revenue of $21.8
million for the comparative period in 2008 due mainly to the
purchase of four additional ships in December 2008. During the
three months ended March 31, 2009 there were 34 unplanned off-hire
days out of 1,440 ownership days, representing utilization of 98%.
In the comparable period of 2008, there were 1,067 ownership days,
with 15 planned off-hire days for a dry-docking and 4 unplanned
days, representing utilization of 98%. There were 4,416 ownership
days in the year ended December 31, 2008, with 15 planned off-hire
days for a dry-docking and 30 unplanned days, representing
utilization of 99%.
Vessel Operating Expenses
Vessel operating expenses, which include costs of crew,
lubricating oil, spares and insurance, were $10.7 million for the
three months ended March 31, 2009. Excluding $0.5 million
nonrecurring insurance related charges in the period, the average
cost per ownership day was $7,076, up 3% from the average daily
cost of $6,873 for the previous quarter, and up 5% from the average
daily cost of $6,714 for the comparative period in 2008. These
increases were primarily due to higher crew costs in the
intervening period and the incremental costs of the four larger
vessels that joined the fleet in December 2008, including, for
example, additional lubricating oil consumption. Vessel operating
expenses include regular ship operating costs under Global Ship
Lease's ship management agreements and are at less than the capped
amounts included in these agreements.
Depreciation
Depreciation was $8.8 million for the three months ended March
31, 2009, including the effect of the purchase during December 2008
of four additional vessels. Depreciation was $4.8 million for the
time charter business in the comparative period in 2008.
General and Administrative Costs
General and administrative costs incurred were $2.1 million in
the first quarter of 2009 compared to $0.7 million in the
comparable period in 2008 when the Company was a wholly-owned
private subsidiary of CMA CGM.
Interest Expense
Net interest expense, excluding the effect of interest rates
derivatives, which do not qualify for hedge accounting, for the
three months ended March 31, 2009 was $4.5 million based on the
Company's borrowings under its credit facility of $542.1 million
and $48.0 million preferred shares throughout the quarter. Net
interest expense in the comparative period in 2008 was $7.9 million
based on borrowings of $578.0 million throughout the quarter at
significantly higher prevailing interest rates.
Change in Fair Value of Financial Instruments
The Company hedges the majority of its interest rate exposure by
entering into derivatives that swap floating rate debt for fixed
rate debt to provide long-term stability and predictability to cash
flows. As these hedges do not qualify for hedge accounting under US
GAAP, the outstanding hedges are marked to market at each period
end with any change in the fair value being booked to the income
and expenditure account. The change in the fair value created a
$2.3 million gain in the three months ended March 31, 2009,
reflecting the increase in LIBOR and movements in the forward curve
for interest rates. Of this amount, a $2.0 million charge
represents settlements of swaps in the period, leaving a $4.3
million gain in the unrealized balance sheet position.
Mark-to-market adjustments have no impact on operating performance
or cash generation and do not affect the Company's ability to make
distributions to shareholders.
Net Earnings
Normalized net earnings were $6.8 million, or $0.13 per Class A
and B common share, for the quarter ended March 31, 2009 excluding
the $4.3 million non-cash interest rate derivative mark-to-market
gain.
Including non-cash charges, the Company reported net income of
$11.2 million for the first quarter of 2009, or $0.21 per Class A
and B common share.
Normalized net earnings and normalized earnings per share are
non-US GAAP measures and are reconciled to the interim unaudited
financial information in this press release. We believe that they
are useful measures with which to assess the Company's financial
performance as they adjust for non-cash non-operating items that do
not affect the Company's ability to make distributions on common
shares.
Credit Facility
On April 29, 2009, due to current challenges in the ship
valuation environment, Global Ship Lease agreed with its lenders
under its amended $800.0 million credit agreement, to waive for two
months the requirement under the credit facility to submit vessel
valuations and undertake the consequent loan-to-value test.
Valuations were otherwise due by April 30, 2009. The Company has
commenced discussions with its lenders to finalize an amendment to
the credit facility to address the situation. The facility will
bear an interest margin of 2.75% over LIBOR during this waiver
period.
Management expects that an agreement will be reached with the
Company's lenders and, accordingly, the interim unaudited combined
financial information have been prepared on a going concern basis.
In the event that the Company does not successfully amend the
facility agreement by June 30, 2009 or agree a further waiver of
the need to perform loan to value tests, and its loan to value
ratio is above 100%, the lenders may declare an event of default
and accelerate some or all of the debt. Any amount of the long term
debt which is declared to be immediately repayable will be
reclassified as current.
Dividend
Global Ship Lease has agreed with its lenders that it will not
declare or pay any dividend to common shareholders during the
waiver period noted above. The board of directors will review the
dividend policy once an amendment to the credit facility has been
agreed with the bank group.
Cash Available for Common Dividends
Cash available for common dividends was $15.3 million for the
three months ended March 31, 2009. Cash available for common
dividends is a non-US GAAP measure and is reconciled to the interim
unaudited financial information further in this press release. We
believe that it is a useful measure with which to assess the
Company's operating performance as it adjusts for the effect of
non-cash items that do not affect the Company's ability to make
distributions on common shares.
Fleet Utilization
The table below shows vessel utilization for first quarter of
2009, the first quarter of 2008 and for the year ended December 31,
2008. Unplanned offhire for the first quarter of 2009 was 34 days,
including 18 days for drydock and associated repair following a
grounding and a seven day deviation to land a sick crew member.
Three Three
months months Year
ended ended ended
March March Dec 31,
31, 2009 31, 2008 2008
---------------------------------------------------------------
Ownership days 1,440 1,067 4,416
Planned offhire - scheduled drydock - (15) (15)
Unplanned offhire - other (34) (5) (30)
---------------------------------------------------------------
Operating days 1,406 1,047 4,371
Utilization 97.6% 98.1% 99.0%
Fleet
The following table provides information about the on-the-water fleet of
16 vessels all chartered to CMA CGM.
Charter
Remaining Daily
Capacity Year Purchase Date Duration Charter
Vessel Name in TEUs(1) Built by GSL (years) Rate ($)
-------------------------------------------------------------------------
Ville d'Orion 4,113 1997 December 2007 4 $28,500
Ville d'Aquarius 4,113 1996 December 2007 4 $28,500
CMA CGM Matisse 2,262 1999 December 2007 8 $18,465
CMA CGM Utrillo 2,262 1999 December 2007 8 $18,465
Delmas Keta 2,207 2003 December 2007 9 $18,465
Julie Delmas 2,207 2002 December 2007 9 $18,465
Kumasi 2,207 2002 December 2007 9 $18,465
Marie Delmas 2,207 2002 December 2007 9 $18,465
CMA CGM La Tour 2,272 2001 December 2007 8 $18,465
CMA CGM Manet 2,272 2001 December 2007 8 $18,465
CMA CGM Alcazar 5,100 2007 January 2008 12 $33,750
CMA CGM Chateau d'lf 5,100 2007 January 2008 12 $33,750
CMA CGM Thalassa 10,960 2008 December 2008 17 $47,200
CMA CGM Jamaica 4,298 2006 December 2008 14 $25,350
CMA CGM Sambhar 4,045 2006 December 2008 14 $25,350
CMA CGM America 4,045 2006 December 2008 14 $25,350
-------------------------------------------------------------------------
(1) Twenty-foot Equivalent Units.
The following table provides information about the contracted fleet.
Estimated
Delivery Charter Daily
Capacity Year Date Duration Charter
Vessel Name in TEUs(1) Built to GSL Charterer (years) Rate($)
-------------------------------------------------------------------------
CMA CGM
Berlioz(2) 6,627 2001 July 2009 CMA CGM 12 $34,000
Hull 789(3) 4,250 2010 October 2010 ZISS 7-8(4) $28,000
Hull 790(3) 4,250 2010 December 2010 ZISS 7-8(4) $28,000
-------------------------------------------------------------------------
(1) Twenty-foot Equivalent Units.
(2) Contracted to be purchased from CMA CGM.
(3) Contracted to be purchased from German interests.
(4) Seven-year charter that could be extended up to eight years at
charterer's option.
Conference Call and Webcast
Global Ship Lease will hold a conference call to discuss the
Company's results for the quarter ended March 31, 2009 today
Tuesday, May 19, 2009 at 11:00 a.m. Eastern Time. There are two
ways to access the conference call:
(1) Dial-in: (877) 719-9801 or (719) 325-4809; Passcode:
6904731
Please dial in at least 10 minutes prior to 11:00 a.m. Eastern
Time to ensure a prompt start to the call.
(2) Live Internet webcast and slide presentation:
http://www.globalshiplease.com
If you are unable to participate at this time, a replay of the
call will be available through Tuesday, June 2, 2009 at (888)
203-1112 or (719) 457-0820. Enter the code 6904731 to access the
audio replay. The webcast will also be archived the Company's
website: http://www.globalshiplease.com.
About Global Ship Lease
Global Ship Lease is a containership charter owner. Incorporated
in the Marshall Islands Global Ship Lease commenced operations in
December 2007 with a business of owning and chartering out
containerships under long-term, fixed rate charters to world class
container liner companies.
Global Ship Lease currently owns 16 vessels and has contracted
to purchase an additional three vessels. The Company has a contract
in place to purchase an additional vessel for $82 million from CMA
CGM, which is expected to be delivered in July of 2009 and also has
contracts in place to purchase two newbuildings from German
interests for approximately $77 million each which are scheduled to
be delivered in the fourth quarter of 2010.
Once all of the contracted vessels have been delivered by the
end of 2010, Global Ship Lease will have a 19 vessel fleet with
total capacity of 74,797 TEU and a weighted average age at that
time of 6.1 years and an average remaining charter term of
approximately eight years. All of the vessels including those
contracted for future delivery are fixed on long-term charters.
Reconciliation of Non-U.S. GAAP Financial Measures
A. Cash Available for Common Dividends
Cash available for common dividends is a non-US GAAP measure and
is reconciled to the interim unaudited financial information below.
It represents net earnings adjusted for non-cash items including
depreciation, amortization of deferred financing charges, accretion
of earnings for intangible liabilities, charge for equity based
incentive awards and change in fair value of derivatives. An
allowance for the cost of future drydockings is also deducted,
which due to their substantial and periodic nature could otherwise
distort quarterly cashflow available for common dividends. Cash
available for common dividends is a non-US GAAP quantitative
measure used to assist in the assessment of the Company's ability
to pay common dividends. Cash available for common dividends is not
defined in accounting principles generally accepted in the United
States and should not be considered to be an alternate to net
earnings or any other financial metric required by such accounting
principles. We believe that cash available for common dividends is
a useful measure with which to assess the Company's operating
performance as it adjusts for the effects of non-cash items that do
not affect the Company's ability to make distributions on common
shares.
CASH AVAILABLE FOR COMMON DIVIDENDS - UNAUDITED
Three
months
ended
March 31, 2009
-------------------------------------------------------------------
(thousands of U.S. dollars)
Net income 11,153
Add: Depreciation 8,786
Charge for equity incentive awards 716
Amortization of deferred financing fees 374
Less: Change in value of derivatives (4,309)
Allowance for future dry-docks (900)
Revenue accretion for intangible liabilities (311)
Deferred taxation (207)
-------------------------------------------------------------------
Cash available for common dividends 15,302
-------------------------------------------------------------------
-------------------------------------------------------------------
B. Normalized net earnings
Normalized net earnings is a non-US GAAP measure and is
reconciled to the interim unaudited financial information below. It
represents net earnings adjusted for the change in fair value of
derivatives. Normalized net earnings is a non-GAAP quantitative
measure which we believe will assist investors and analysts who
often adjust reported net earnings for non-operating items such as
change in fair value of derivatives to eliminate the effect of non
cash non-operating items that do not affect operating performance
or cash for distribution as dividends. Normalized net earnings is
not defined in accounting principles generally accepted in the
United States and should not be considered to be an alternate to
net earnings or any other financial metric required by such
accounting principles. Normalized net earnings per share is
calculated based on normalized net earnings and the weighted
average number of shares in the relevant period.
NORMALIZED NET EARNINGS - UNAUDITED
Three
months
ended
March 31, 2009
-----------------------------------------------------------------
(thousands of U.S. dollars except share and per
share data)
Net income 11,153
Adjust: Change in value of derivatives (4,309)
-----------------------------------------------------------------
Normalized net earnings 6,844
-----------------------------------------------------------------
-----------------------------------------------------------------
Weighted average number of Class A and B common
shares outstanding (1)
Basic and diluted 53,786,150
Net income per share on reported earnings
Basic and diluted 0.21
Normalized net income per share
Basic and diluted 0.13
(1) The weighted average number of shares (basic and diluted) excludes
the effect of outstanding warrants and stock based incentive awards
as these were anti dilutive at March 31, 2009.
Safe Harbor Statement
This communication contains forward-looking statements.
Forward-looking statements provide Global Ship Lease's current
expectations or forecasts of future events. Forward-looking
statements include statements about Global Ship Lease's
expectations, beliefs, plans, objectives, intentions, assumptions
and other statements that are not historical facts. Words or
phrases such as "anticipate," "believe," "continue," "estimate,"
"expect," "intend," "may," "ongoing," "plan," "potential,"
"predict," "project," "will" or similar words or phrases, or the
negatives of those words or phrases, may identify forward-looking
statements, but the absence of these words does not necessarily
mean that a statement is not forward-looking. These forward-looking
statements are based on assumptions that may be incorrect, and
Global Ship Lease cannot assure you that these projections included
in these forward-looking statements will come to pass. Actual
results could differ materially from those expressed or implied by
the forward-looking statements as a result of various factors.
The risks and uncertainties include, but are not limited to:
- future operating or financial results;
- expectations regarding the strength of the future growth of
the shipping industry, including the rate of annual demand growth
in the international containership industry;
- future payments of dividends and the availability of cash for
payment of dividends;
- Global Ship Lease's expectations relating to dividend payments
and forecasts of its ability to make such payments;
- future acquisitions, business strategy and expected capital
spending;
- operating expenses, availability of crew, number of off-hire
days, drydocking and survey requirements and insurance costs;
- general market conditions and shipping industry trends,
including charter rates and factors affecting supply and
demand;
- Global Ship Lease's ability to repay its credit facility and
grow using the available funds under its credit facility;
- assumptions regarding interest rates and inflation;
- change in the rate of growth of global and various regional
economies;
- risks incidental to vessel operation, including discharge of
pollutants and vessel collisions;
- Global Ship Lease's financial condition and liquidity,
including its ability to obtain additional financing in the future
to fund capital expenditures, acquisitions and other general
corporate activities;
- estimated future capital expenditures needed to preserve its
capital base;
- Global Ship Lease's expectations about the availability of
ships to purchase, the time that it may take to construct new
ships, or the useful lives of its ships;
- Global Ship Lease's continued ability to enter into long-term,
fixed-rate charters;
- Global Ship Lease's ability to capitalize on its management
team's and board of directors' relationships and reputations in the
containership industry to its advantage;
- changes in governmental and classification societies' rules
and regulations or actions taken by regulatory authorities;
- expectations about the availability of insurance on
commercially reasonable terms;
- unanticipated changes in laws and regulations; and
- potential liability from future litigation.
Forward-looking statements are subject to known and unknown
risks and uncertainties and are based on potentially inaccurate
assumptions that could cause actual results to differ materially
from those expected or implied by the forward-looking statements.
Global Ship Lease's actual results could differ materially from
those anticipated in forward-looking statements for many reasons
specifically as described in Global Ship Lease's filings with the
SEC. Accordingly, you should not unduly rely on these
forward-looking statements, which speak only as of the date of this
communication. Global Ship Lease undertakes no obligation to
publicly revise any forward-looking statement to reflect
circumstances or events after the date of this communication or to
reflect the occurrence of unanticipated events. You should,
however, review the factors a risks Global Ship Lease describes in
the reports it will file from time to time with the SEC after the
date of this communication.
Global Ship Lease, Inc.
Interim Unaudited Combined Balance Sheets
The interim unaudited combined financial information up to March 31, 2009
includes two distinct reporting periods (i) before August 15, 2008
("Predecessor") and (ii) from August 15, 2008 ("Successor"), which relate
to the period preceding the merger with Marathon Acquisition Corp and the
period succeeding the merger, respectively.
(Expressed in thousands of U.S. dollars)
March 31, December 31,
2009 2008
Successor Successor
-------------------------------------------------------------------------
Assets
Cash and cash equivalents $25,383 $26,363
Restricted cash 3,026 3,026
Accounts receivable 912 638
Prepaid expenses 638 734
Other receivables 1,160 1,713
Deferred financing costs 1,008 526
-------------------------------------------------------------------------
Total current assets 32,127 33,000
-------------------------------------------------------------------------
Vessels in operation 898,048 906,896
Vessel deposits 15,780 15,720
Other fixed assets 18 21
Intangible assets - purchase agreement 7,840 7,840
Deferred financing costs 5,568 3,131
-------------------------------------------------------------------------
Total non-current assets 927,254 933,608
-------------------------------------------------------------------------
Total Assets $959,381 $966,608
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities and Stockholders' Equity
Liabilities
Intangible liability - charter agreements $1,863 $1,608
Accounts payable 275 36
Accrued expenses 4,092 6,436
Derivative instruments 12,152 10,940
-------------------------------------------------------------------------
Total current liabilities 18,382 19,020
-------------------------------------------------------------------------
Long term debt 542,100 542,100
Preferred shares 48,000 48,000
Intangible liability - charter agreements 25,782 26,348
Derivative instruments 30,580 36,101
-------------------------------------------------------------------------
Total long-term liabilities 646,462 652,549
-------------------------------------------------------------------------
Total Liabilities $664,844 $671,569
-------------------------------------------------------------------------
Stockholders' Equity
Class A Common stock - authorized
214,000,000 shares with a $.01 par value;
46,380,194 shares issued
and outstanding 464 339
Class B Common stock - authorized
20,000,000 shares with a $.01 par value;
7,405,956 shares issued
and outstanding 74 74
Class C Common stock - authorized
15,000,000 shares with a $.01 par value;
12,375,000 shares issued, converted to
class A common shares on January 1, 2009 - 124
Retained (deficit) (65,679) (9,338)
Net income (loss) for the period 11,153 (43,970)
Additional paid in capital 348,525 347,810
Total Stockholders' Equity 294,537 295,039
-------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity $959,381 $966,608
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Global Ship Lease, Inc.
Interim Unaudited Combined Statements of Income
The interim unaudited combined financial information up to March 31, 2009
includes two distinct reporting periods (i) before August 15, 2008
("Predecessor") and (ii) from August 15, 2008 ("Successor"), which relate
to the period preceding the merger with Marathon Acquisition Corp and the
period succeeding the merger, respectively.
(thousands of U.S. dollars except share data)
Three months ended March 31,
2009 2008
Successor Predecessor
------------------------------------------------------------------------
Operating Revenues
Voyage revenue $- $2,072
Time charter revenue 35,008 21,822
------------------------------------------------------------------------
35,008 23,894
------------------------------------------------------------------------
Operating Expenses
Voyage expenses - 1,944
Vessel operating expenses 10,722 7,345
Depreciation 8,786 5,020
General and administrative 2,140 722
Other operating (income) expense (56) 280
------------------------------------------------------------------------
Total operating expenses 21,592 15,311
------------------------------------------------------------------------
Operating Income 13,416 8,583
Non Operating Income (Expense)
Interest income 142 302
Interest expense (4,654) (8,234)
Realized and unrealized gain on interest
rate derivatives 2,275 -
------------------------------------------------------------------------
Income before Income Taxes 11,179 651
Income taxes (26) (16)
Net Income $11,153 $635
------------------------------------------------------------------------
------------------------------------------------------------------------
Weighted average number of common shares
outstanding basic and diluted n/a 100
Net income (loss) per share in $ per
share basic and diluted n/a (6)
Weighted average number of Class A common
shares outstanding
Basic and diluted 46,380,194 n/a
Net income (loss) in $ per share amount
Basic and diluted $0.23 n/a
Weighted average number of Class B common
shares outstanding
Basic and diluted 7,405,956 n/a
Net income (loss) in $ per share amount
Basic and diluted $0.07 n/a
Global Ship Lease, Inc.
Interim Unaudited Combined Statements of Cash Flows
The interim unaudited combined financial information up to March 31, 2009
includes two distinct reporting periods (i) before August 15, 2008
("Predecessor") and (ii) from August 15, 2008 ("Successor"), which relate
to the period preceding the merger with Marathon Acquisition Corp and the
period succeeding the merger, respectively.
(thousands of U.S. dollars)
Three months ended March, 31
2009 2008
Successor Predecessor
-------------------------------------------------------------------------
Cash Flows from Operating Activities
Net income $11,153 $635
Adjustments to Reconcile Net Income
to Net Cash provided by Operating Activities
Depreciation 8,786 5,020
Amortization of deferred financing costs 374 190
Change in fair value of certain financial
derivative instruments (4,309) 111
Intangible liability amortization (311) -
Settlements of hedges which do not qualify
for hedge accounting 2,034 -
Share-based compensation 716 -
Decrease (increase) in other receivables and
prepaid expenses 386 (1,943)
(Decrease) in amounts payable and other
liabilities (1,531) (1,322)
Decrease in inventories - 1,613
Periodic costs relating to drydocks - (410)
-------------------------------------------------------------------------
Net Cash Provided by Operating Activities 17,298 3,894
-------------------------------------------------------------------------
Cash Flows from Investing Activities
Settlements of hedges which do not qualify
for hedge accounting (2,034) -
Cash paid for purchases of vessels and vessel
prepayments (580) -
-------------------------------------------------------------------------
Net Cash Used in Investing Activities (2,614) -
-------------------------------------------------------------------------
Cash Flows from Financing Activities
Variation in restricted cash - 188,000
Issuance costs of debt (3,293) (276)
Dividend payments (12,371) -
(Decrease) in amount due to CMA CGM - (188,716)
Deemed distribution to CMA CGM - (505)
-------------------------------------------------------------------------
Net Cash Used in Financing Activities (15,664) (1,497)
-------------------------------------------------------------------------
Net(Decrease)/ Increase in Cash and Cash
Equivalents (980) 2,397
Cash and Cash Equivalents at start of Period 26,363 1,891
-------------------------------------------------------------------------
Cash and Cash Equivalents at end of Period 25,383 4,288
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Global Ship Lease, Inc.
Operating Segments
Segment information reported below has been prepared on the same
basis that it is reported internally to the Company's chief
operating decision maker. The Company operated under two business
models from which it derives its revenues reported within this
summary financial information: (i) the provision of vessels by the
Company under time charters to container shipping companies and
(ii) freight revenues generated by the containerized transportation
of a broad range of industrial and consumer goods by the
predecessor group. There are no transactions between reportable
segments. Following the delivery of the initial 12 vessels in
December 2007 and January 2008, the activity consists solely of the
ownership and provision of vessels for container shipping under
time charters.
The "Adjustment" column in the table below includes the
elimination of the containerized transportation activity performed
by the predecessor up to March 31, 2008.
During the three months ended March 31, 2009 and 2008 the
activities can be analyzed as follows:
Three months ended March 31 (unaudited)
--------------------------------------------------------------------------
(thousands of U.S. dollars)
2009 2008
Successor Predecessor
--------------------------------------------------------------------------
Time Time
Charter Charter Adjustment Total
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Operating revenues $35,008 $21,822 $2,072 $23,894
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Operating expenses
Voyage expenses - - 1,944 1,944
Vessel operating expenses 10,722 7,164 181 7,345
Depreciation 8,786 4,759 261 5,020
General and administrative 2,140 665 57 722
Other operating (income)
expenses (56) - 280 280
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Total operating expense 21,592 12,588 2,723 15,311
Operating income
(expenses) 13,416 9,234 (651) 8,583
Interest income 142 302 - 302
Interest expense (4,654) (8,234) - (8,234)
Realized and unrealized
gain on derivatives 2,275 - - -
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Income (expense) before
income taxes 11,179 1,302 (651) 651
Taxes on income (26) (16) - (16)
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Net income (expense) $11,153 $1,286 $(651) $635
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Contacts: Investor and Media Contact: Tyler Wilson The IGB Group
646-673-9701
Global Ship Lease Ut (NYSE:GSL.U)
過去 株価チャート
から 4 2024 まで 5 2024
Global Ship Lease Ut (NYSE:GSL.U)
過去 株価チャート
から 5 2023 まで 5 2024
