Global Ship Lease, Inc. (NYSE: GSL) (the “Company”, “Global Ship
Lease” or “GSL”), an owner of containerships, announced today its
unaudited results for the three months and year ended December 31,
2023.
Full Year and Fourth Quarter of 2023
Highlights
- Reported operating revenue of $178.9 million
for the fourth quarter of 2023, an increase of 8.4% on operating
revenue of $165.0 million for the prior year period. For the year
ended December 31, 2023, operating revenue was $674.8 million, up
4.5% from $645.6 million for the prior year.
- Reported net income available to common
shareholders of $64.7 million for the fourth quarter of 2023, a
decrease of 10.9% on net income of $72.6 million for the prior year
period. Normalized net income (a non-U.S. GAAP financial measure,
described below) for the same period was $87.8 million, up 13.6% on
Normalized net income of $77.3 million for the prior year
period.
- For the year ended December 31, 2023, net
income available to common shareholders was $295.0 million, an
increase of 4.1% on net income of $283.4 million for the prior
year. Normalized net income for the year ended December 31, 2023
was $319.7 million, up 7.2% on Normalized net income for the prior
year of $298.2 million.
- Generated $127.1 million of Adjusted EBITDA (a
non-U.S. GAAP financial measure, described below) for the fourth
quarter of 2023, up 27.1% on Adjusted EBITDA of $100.0 million for
the prior year period. Adjusted EBITDA for the year ended December
31, 2023 was $462.1 million, up $63.8 million or 16.0% on Adjusted
EBITDA of $398.3 million for the prior year.
- Earnings per share for the fourth quarter of
2023 was $1.84, down 8.5% on the earnings per share of $2.01 for
the prior year period. Normalized earnings per share (a non-U.S.
GAAP financial measure, described below) for the fourth quarter of
2023 was $2.49, up 16.4% on the Normalized earnings per share of
$2.14 for the prior year period. Earnings per share for the year
ended December 31, 2023 was $8.33, up 7.6% on the earnings per
share of $7.74 for the prior year. Normalized earnings per share
for the year ended December 31, 2023 was $9.03, up 10.8% on the
Normalized earnings per share of $8.15 for the prior year.
- Declared a dividend of $0.375 per Class A
common share for the fourth quarter of 2023 to be paid on March 6,
2024 to common shareholders of record as of February 22, 2024. Paid
a dividend of $0.375 per Class A common share for the third quarter
of 2023 on December 4, 2023.
- Between January 1, 2023 and December 31, 2023,
added $313.2 million of contracted revenue to forward charter
cover, calculated on the basis of the median firm periods of the
respective charters. Twenty-two new charter fixtures (including
short re-charters of the same vessel) or extensions were agreed on
eight ships between 2,200 and 3,500 TEU, one 6,800 TEU ship, and
two 7,800 TEU ships; forward fixtures were agreed for one 6,600 TEU
ship, two 8,600 TEU ships, and one ECO 9,100 TEU ship; and four
8,544 TEU vessels were purchased with charters attached. With the
exception of one very short re-positioning charter, firm charter
terms ranged from a few months to three years. Contracted revenue
as of December 31, 2023, calculated on the same basis, was $1.72
billion.
- Ian Webber, our Chief Executive Officer, to
retire from the CEO role he has held since our inception in 2007
and will join GSL’s Board of Directors, effective March 31, 2024,
expanding the size of Board to nine members. Thomas Lister, who
also joined the Company in 2007 and has held a number of senior
executive roles, has been appointed to succeed Mr. Webber as CEO,
effective concurrently with Mr. Webber’s retirement.
- During the three months ended December 31,
2023, repurchased an aggregate of 87,942 Class A common shares, at
repurchase prices ranging from between $17.51 and $17.77, with an
average price of $17.61. During the year ended December 31, 2023,
repurchased an aggregate of 1,242,663 Class A common shares, at
repurchase prices ranging from between $16.12 and $18.69 per share,
with an average price of $17.68. Since March 2022, a total of
2,303,303 Class A common shares have been repurchased under the
buy-back authorizations approved by the Board of Directors, for
approximately $42.0 million, with approximately $38.0 million of
authorized capacity remaining.
George Youroukos, our Executive Chairman,
stated: “In a time of rising geopolitical uncertainty, Global Ship
Lease has remained committed to its successful business model,
combining operational excellence with a disciplined approach to
preserving and building shareholder value through the cycle. Trade
disruptions in the Red Sea significantly escalated towards the end
of the fourth quarter of 2023, resulting in large-scale re-routing
of containerships away from the Suez Canal and around the Cape of
Good Hope, absorbing substantial effective supply. Meanwhile, water
shortages in the Panama Canal have led to a reduction in the number
of vessels that can transit that key waterway, adding further
bottlenecks to the global supply chain. Taken together, these two
developments have caused a meaningful tightening of containership
supply and demand - arresting, and even reversing, the previous
downward normalization of charter rates and asset values.
It is impossible to predict how long disruptions
to the Red Sea and Panama will last, and significant macroeconomic,
geopolitical, and regulatory uncertainty remain prominent features
of the market outlook. In this environment, our fleet of
high-quality, mid-sized and smaller containerships continues to
provide liner companies with the flexible tonnage that is key to
their service networks through the cycle – especially at times of
uncertainty and disruption.
We have entered 2024 with strong charter
coverage for much of the year and continue to work hard to
capitalize on current market firmness to grow contract cover and
strengthen forward cash flow visibility. Further, the steps that we
continue to take to enhance our balance sheet, our extensive
contract coverage, and our discipline in allocating capital have
put us in a strong position as the sector transitions into the
increasingly uncertain period ahead. And we remain as tightly
focused as ever on maximizing long-term value for our shareholders:
alongside returning capital in the form of both dividends and
buybacks, we expect to see a growing number of interesting
countercyclical investment opportunities in the months and quarters
ahead.”
Ian Webber, our Chief Executive Officer, stated:
“Throughout 2023, we made important progress in driving down our
leverage, minimizing our cost of debt, and improving our cash
liquidity. During the year we purchased four 8,500 TEU ships, with
charters attached, which we believe have compelling risk and return
characteristics. Our 0.64% SOFR interest rate caps on floating rate
debt further enhance returns. We continue to benefit from the
forward visibility and attractive fixed rates of our charter
portfolio, much of which was agreed during the 2021-2022 super
upcycle. As I transition to a position on the Board at the end of
this quarter, I am confident that Global Ship Lease is not only
well positioned to be resilient through the cycle ahead, but to
create long-lasting value by combining proven discipline and
financial strength with the ability to capitalize on
value-accretive countercyclical opportunities.”
SELECTED FINANCIAL DATA – UNAUDITED
(thousands of U.S. dollars)
|
Three |
Three |
|
|
|
months ended |
months ended |
Year ended |
Year ended |
|
December 31, 2023 |
December 31, 2022 |
December 31, 2023 |
December 31, 2022 |
|
|
|
|
|
Operating Revenue
(1) |
178,894 |
165,022 |
674,795 |
645,645 |
Operating Income |
78,854 |
85,134 |
343,218 |
354,185 |
Net Income
(2) |
64,665 |
72,621 |
294,964 |
283,389 |
Adjusted EBITDA
(3) |
127,137 |
99,986 |
462,058 |
398,350 |
Normalized Net Income
(3) |
87,830 |
77,277 |
319,725 |
298,247 |
(1) Operating Revenue is net of address
commissions which represent a discount provided directly to a
charterer based on a fixed percentage of the agreed upon charter
rate and also includes the amortization of intangible liabilities,
the effect of the straight lining of time charter modifications and
the compensation from charterers for drydock and other capitalized
expenses installation. Brokerage commissions are included in “Time
charter and voyage expenses” (see below).
(2) Net Income available to common
shareholders.
(3) Adjusted EBITDA and Normalized Net Income
are non-U.S. Generally Accepted Accounting Principles (“U.S. GAAP”)
financial measures, as explained further in this press release, and
are considered by Global Ship Lease to be a useful measure of its
performance. For reconciliations of these non-U.S. GAAP financial
measures to net income, the most directly comparable U.S. GAAP
financial measure, please see “Reconciliation of Non-U.S. GAAP
Financial Measures” below.
Operating Revenue and Utilization
Operating revenue derived from fixed-rate,
mainly long-term, time-charters was $178.9 million in the fourth
quarter of 2023, up $13.9 million (or 8.4%) on operating revenue of
$165.0 million in the prior year period. The period-on-period
increase in operating revenue was principally due to charter
renewals at higher rates on a number of vessels, our acquisition of
four vessels which were delivered to us in the second quarter of
2023 and a decrease in planned and unplanned off hire days,
partially offset by a non-cash $6.9 million reduction in the
amortization of intangible liabilities arising on below-market
charters attached to certain vessel additions and a non-cash $6.2
million decrease in the effect from straight lining time charter
modifications. There were 120 days of offhire and idle time in the
fourth quarter of 2023 of which 74 were for scheduled drydockings,
compared to 347 days of offhire in the prior year period of which
225 were for scheduled drydockings. Utilization for the fourth
quarter of 2023 was 98.1% compared to utilization of 94.2% in the
prior year period.
For the year ended December 31, 2023, operating
revenue was $674.8 million, up $29.2 million (or 4.5%) on operating
revenue of $645.6 million in the prior year, mainly due to charter
renewals at higher rates for a number of vessels, a 4.6% increase
in ownership days due to our acquisition of the four vessels and
our sale of one vessel, resulting in 24,285 ownership days in 2023,
compared to 23,725 in 2022, and a decrease in offhire and idle time
from 1,071 days in 2022 to 996 in 2023.
The table below shows fleet utilization for the
three months ended December 31, 2023 and 2022, and for the years
ended December 31, 2023, 2022, 2021 and 2020.
|
Three months ended |
|
Year ended |
|
Dec 31, |
Dec 31, |
|
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Days |
2023 |
2022 |
|
2023 |
2022 |
2021 |
2020 |
|
|
|
|
|
|
|
|
Ownership days |
6,256 |
|
5,980 |
|
|
24,285 |
|
23,725 |
|
19,427 |
|
16,044 |
|
Planned offhire - scheduled
drydock |
(74 |
) |
(225 |
) |
|
(701 |
) |
(581 |
) |
(752 |
) |
(687 |
) |
Unplanned offhire |
(26 |
) |
(122 |
) |
|
(233 |
) |
(460 |
) |
(260 |
) |
(95 |
) |
Idle time |
(20 |
) |
nil |
|
|
(62 |
) |
(30 |
) |
(88 |
) |
(338 |
) |
Operating days |
6,136 |
|
5,633 |
|
|
23,289 |
|
22,654 |
|
18,327 |
|
14,924 |
|
|
|
|
|
|
|
|
|
Utilization |
98.1 |
% |
94.2 |
% |
|
95.9 |
% |
95.5 |
% |
94.3 |
% |
93.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2023 one regulatory
drydocking was in progress. In 2024, 15 regulatory drydockings are
anticipated.
Vessel Operating Expenses
Vessel operating expenses, which are primarily
the costs of crew, lubricating oil, repairs, maintenance, insurance
and technical management fees, were up 3.1% to $47.0 million for
the fourth quarter of 2023, compared to $45.6 million in the prior
year period. The increase of $1.4 million was mainly due to our
acquisition of four vessels delivered to us during the second
quarter of 2023. The average cost per ownership day in the quarter
was $7,505, compared to $7,619 for the prior year period, down $114
per day, or 1.5%.
For the year ended December 31, 2023, vessel
operating expenses were up 7.0% to $179.2 million, compared to
$167.4 million in the comparative period. The increase of $11.8
million was mainly due to (i) inflation impact on all cost
categories including crew costs due to limited crew supply as a
consequence of current container market conditions and worldwide
inflation, (ii) our acquisition of the four vessels in the second
quarter of 2023, (iii) increase in repairs, spares and maintenance
expenses for planned main engine maintenance and overhaul of diesel
generators as well as main engine annual spares delivery, (iv)
increased cost of insurance due to increased premiums, (v) increase
in management fees from January 1, 2023 and (vi) the negative
impact of the EURO/USD exchange rate. The average cost per
ownership day for the year ended December 31, 2023 was $7,380,
compared to $7,058 for the prior year period, up $322 per day, or
4.6%.
Time Charter and Voyage Expenses
Time charter and voyage expenses comprise mainly
commission paid to ship brokers, the cost of bunker fuel for
owner’s account when a ship is off-hire or idle and miscellaneous
owner’s costs associated with a ship’s voyage. Time charter and
voyage expenses were $5.4 million for the fourth quarter of 2023,
compared to $6.6 million in the prior year period. The decrease was
mainly due to decrease in bunkering expenses due to fewer off hire
days offset by increased commissions on charter renewals at higher
rates.
For the year ended December 31, 2023, time
charter and voyage expenses were $23.6 million, or an average of
$971 per day, compared to $21.2 million in the comparative period,
or $892 per day, an increase of $79 per ownership day, or 8.9%. The
increase was mainly due to increased commissions on charter
renewals at higher rates and additional voyage, operational and
administration costs.
Depreciation and Amortization
Depreciation and amortization for the fourth
quarter of 2023 was $24.4 million, compared to $20.7 million in the
prior year period. The increase was mainly due to our acquisition
of the four vessels in the second quarter of 2023 and 13
drydockings completed in 2023.
Depreciation for the year ended December 31,
2023 was $91.7 million, compared to $81.3 million in the prior
year, with the increase being due to the reasons mentioned
above.
Impairment of vessels
A non-cash impairment loss of $18.8 million was
recorded in the fourth quarter of 2023 on two vessels. A non-cash
impairment loss of $3.0 million was recorded in the fourth quarter
of 2022 on one vessel, which was subsequently sold.
General and Administrative Expenses
General and administrative expenses were $4.5
million in the fourth quarter of 2023, compared to $4.1 million in
the prior year period. The increase was mainly due to the non-cash
effect of stock-based compensation expense due to vesting and a
one-off expense due to social security charges related to
settlement of shares under the Omnibus Incentive Plan. The average
general and administrative expense per ownership day for the fourth
quarter of 2023 was $714, compared to $682 in the prior year
period, an increase of $32 or 4.7%.
For the year ended December 31, 2023, general
and administrative expenses were $18.2 million, compared to $18.5
million in the comparative period. The average general and
administrative expense per ownership day for the year ended
December 31, 2023 was $750, compared to $781 in the comparative
period, a decrease of $31 or 4.0%.
Adjusted EBITDA
Adjusted EBITDA (a non-GAAP financial measure)
was $127.1 million for the fourth quarter of 2023, up from $100.0
million for the prior year period, with the net increase being
mainly due to increased revenue from charter renewals at higher
rates and the addition of the four vessels in second quarter of
2023.
Adjusted EBITDA for the year ended December 31,
2023 was $462.1 million, compared to $398.3 million for the prior
year, an increase of $63.8 million or 16.0%.
Interest Expense and Interest Income
Debt as at December 31, 2023 totaled $823.2
million, comprising $431.5 million of secured bank debt
collateralized by vessels, $284.4 million of investment grade rated
5.69% Senior Secured Notes due 2027 (the “2027 Secured Notes”)
collateralized by vessels, and $107.3 million under sale and
leaseback financing transactions. As of December 31, 2023, five
vessels were unencumbered.
Debt as at December 31, 2022 totaled $949.5
million, comprising $470.9 million of secured bank debt
collateralized by vessels, $336.9 million of 2027 Secured Notes
collateralized by vessels, and $141.7 million under sale and
leaseback financing transactions. As of December 31, 2022, five
vessels were unencumbered.
Interest and other finance expenses for the
fourth quarter of 2023 was $11.2 million, up from $10.4 million for
the prior year period. The increase was mainly due to the interest
expense of the new credit facility for the four additional vessels
and the amortization of premium on interest rate caps. The blended
cost of debt, taking into account interest rate caps, has
marginally increased from approximately 4.53% for the fourth
quarter of 2022 to 4.55% for the fourth quarter of 2023 due to
variations in amortization schedules and the addition of a new
credit facility for the four additional vessels.
Interest and other finance expenses for the year
ended December 31, 2023 was $44.8 million, down from $75.3 million
for the prior year. The decrease is mainly due to one off events
which took place in the nine months ended September 30, 2022
including (i) the prepayment fee and the associated non-cash write
off of deferred financing charges of $14.1 million on the full
repayment of the Hayfin Credit Facility, (ii) the non-cash write
off of deferred financing charges of $0.3 million on the full
repayment of the Hellenic Credit Facility and (iii) the $2.4
million premium paid on the redemption of the 8.00% Senior
Unsecured Notes due 2024 (the “2024 Notes”) and the associated
non-cash write off of deferred financing charges of $2.1 million,
which was partially offset by $1.3 million of accelerated
amortization of premium and (iv) a prepayment fee and the
associated non-cash write off of deferred financing charges of $4.1
million on the full repayment of the Blue Ocean Junior Credit
Facility. The decrease in interest and other finance expenses was
partially offset by the increase in amortization of premium on the
interest rate caps.
Interest income for the fourth quarter of 2023
was $2.9 million, up from $1.3 million for the prior year
period.
Interest income for the year ended December 31,
2023 was $9.8 million, compared to $2.5 million for the prior
year.
Other income, net
Other income, net was $1.3 million in the fourth
quarter of 2023, compared to other income, net of $0.6 million in
the prior year period.
Other income, net was $2.2 million for the year
ended December 31, 2023, compared to $1.8 million for the prior
year.
Taxation
Taxation for the fourth quarter of 2023 was $0.4
million while in the comparative period it was nil.
Taxation for the year ended December 31, 2023
was $0.4 million while in the comparative period it was a credit of
$50,000.
Fair value adjustment on derivatives
In December 2021, we entered into
a USD 1 month LIBOR interest rate cap of 0.75% through
the fourth quarter of 2026 on $484.1 million of floating
rate debt, which reduces over time in line with anticipated debt
amortization and represented approximately half of the outstanding
floating rate debt. In February 2022, we entered into two
additional USD 1-month LIBOR interest rate caps of 0.75% through
the fourth quarter of 2026 on the remaining balance of $507.9
million of floating rate debt. One of these interest rate caps
was not designated as a cash flow hedge. As a result of the
discontinuation of LIBOR, on July 1, 2023, our interest rate caps
have automatically transited to 1 month Compounded SOFR at a net
rate of 0.64%. A negative fair value adjustment of $4.3 million for
the fourth quarter of 2023 was recorded through the statement of
income. The negative fair value adjustment for the year ended
December 31, 2023 amounted to $5.4 million.
Earnings Allocated to Preferred Shares
The Series B Preferred Shares carry a coupon of
8.75%, the cost of which for the fourth quarter of 2023 was $2.4
million, the same as in the prior year period. The cost for the
year ended December 31, 2023 was $9.5 million, the same as for the
prior year.
Net Income Available to Common Shareholders
Net income available to common shareholders for
the fourth quarter of 2023 was $64.7 million. Net income available
to common shareholders for the prior year period was $72.6
million.
Earnings per share for the fourth quarter of
2023 was $1.84, a decrease of 8.5% from the earnings per share for
the prior year period, which was $2.01.
For the year ended December 31, 2023, net income
available to common shareholders was $295.0 million. Net income
available to common shareholders for the prior year was $283.4
million.
Earnings per share for the year ended December
31, 2023 was $8.33, an increase of 7.6% from the earnings per share
for the prior year, which was $7.74.
Normalized net income (a non-GAAP financial
measure) for the fourth quarter of 2023, was $87.8 million.
Normalized net income for the prior year period was $77.3
million.
Normalized net income for the year ended
December 31, 2023 was $319.7 million, as compared to $298.2 for the
prior year.
Normalized earnings per share (a non-GAAP
financial measure) for the fourth quarter of 2023 was $2.49, an
increase of 16.4% from Normalized earnings per share for the prior
year period, which was $2.14.
Normalized earnings per share for the year ended
December 31, 2023 was $9.03, an increase of 10.8% from Normalized
earnings per share for the prior year, which was $8.15.
Fleet
As of December 31, 2023, there were 68
containerships in the fleet.
Vessel Name |
Capacity in TEUs |
Lightweight (tons) |
Year Built |
Charterer |
Earliest Charter Expiry Date |
Latest Charter Expiry Date (2) |
Daily Charter Rate $ |
|
|
|
|
|
|
|
|
CMA CGM Thalassa |
11,040 |
38,577 |
2008 |
CMA CGM |
4Q25 |
2Q26 |
47,200 |
ZIM Norfolk
(1) |
9,115 |
31,764 |
2015 |
ZIM |
2Q27 |
4Q27 |
65,000 |
Anthea Y (1) |
9,115 |
31,890 |
2015 |
MSC |
3Q25 |
4Q25 |
Footnote (3) |
ZIM Xiamen (1) |
9,115 |
31,820 |
2015 |
ZIM |
3Q27 |
4Q27 |
65,000 |
MSC Tianjin |
8,603 |
34,325 |
2005 |
MSC |
3Q27 |
4Q27 |
19,000 (4) |
MSC Qingdao |
8,603 |
34,609 |
2004 |
MSC |
2Q27 |
3Q27 |
23,000 (4) |
GSL Ningbo |
8,603 |
34,340 |
2004 |
MSC |
3Q27 |
4Q27 (5) |
Footnote (5) |
GSL Alexandra |
8,544 |
37,777 |
2004 |
Maersk |
3Q25 |
3Q26 |
Footnote (6) |
GSL Sofia |
8,544 |
37,777 |
2003 |
Maersk |
3Q25 |
3Q26 |
Footnote (6) |
GSL Effie |
8,544 |
37,777 |
2003 |
Maersk |
3Q25 |
3Q26 |
Footnote (6) |
GSL Lydia |
8,544 |
37,777 |
2003 |
Maersk |
2Q25 |
3Q26 |
Footnote (6) |
GSL Eleni |
7,847 |
29,261 |
2004 |
Maersk |
3Q24 |
1Q25 |
16,500 |
GSL Kalliopi |
7,847 |
29,105 |
2004 |
Maersk |
3Q24 |
4Q24 |
18,900 |
GSL Grania |
7,847 |
29,190 |
2004 |
Maersk |
3Q24 |
1Q25 |
17,750 |
Mary (tbr Colombia Express)
(1) (15) |
6,927 |
23,424 |
2013 |
Hapag-Lloyd (7) |
4Q28 |
1Q31 (7) |
Footnote (7) |
Kristina (1) |
6,927 |
23,421 |
2013 |
CMA CGM (7) |
3Q29 |
4Q31 (7) |
25,910 (7) |
Katherine (1) |
6,927 |
23,403 |
2013 |
CMA CGM (7) |
2Q29 |
2Q31 (7) |
25,910 (7) |
Alexandra (1) |
6,927 |
23,348 |
2013 |
CMA CGM (7) |
2Q29 |
3Q31 (7) |
25,910 (7) |
Alexis (1) |
6,882 |
23,919 |
2015 |
CMA CGM (7) |
2Q29 |
3Q31 (7) |
25,910 (7) |
Olivia I (1) |
6,882 |
23,864 |
2015 |
CMA CGM (7) |
2Q29 |
3Q31 (7) |
25,910 (7) |
GSL Christen |
6,840 |
27,954 |
2002 |
OOCL |
3Q24 |
4Q24 |
20,500 |
GSL Nicoletta |
6,840 |
28,070 |
2002 |
Maersk |
3Q24 |
1Q25 |
35,750 |
CMA CGM Berlioz |
6,621 |
26,776 |
2001 |
CMA CGM |
4Q25 |
2Q26 |
37,750 |
Agios Dimitrios |
6,572 |
24,931 |
2011 |
MSC |
2Q27 |
3Q27 |
20,000 (4) |
GSL Vinia |
6,080 |
23,737 |
2004 |
Maersk |
3Q24 |
1Q25 |
13,250 |
GSL Christel Elisabeth |
6,080 |
23,745 |
2004 |
Maersk |
2Q24 |
1Q25 |
13,250 |
GSL Dorothea |
5,992 |
24,243 |
2001 |
Maersk |
3Q24 |
3Q26 |
18,600 (8) |
GSL Arcadia |
6,008 |
24,858 |
2000 |
Maersk |
2Q24 |
1Q26 |
18,600 (8) |
GSL Violetta |
6,008 |
24,873 |
2000 |
Maersk |
4Q24 |
4Q25 |
18,600 (8) |
GSL Maria |
6,008 |
24,414 |
2001 |
Maersk |
4Q24 |
1Q27 |
18,600 (8) |
GSL MYNY |
6,008 |
24,873 |
2000 |
Maersk |
3Q24 |
1Q26 |
18,600 (8) |
GSL Melita |
6,008 |
24,848 |
2001 |
Maersk |
3Q24 |
3Q26 |
18,600 (8) |
GSL Tegea |
5,992 |
24,308 |
2001 |
Maersk |
3Q24 |
3Q26 |
18,600 (8) |
Tasman |
5,936 |
25,010 |
2000 |
Maersk |
2Q24 |
2Q24 |
20,000 |
ZIM Europe |
5,936 |
25,010 |
2000 |
ZIM |
1Q24 |
2Q24 |
24,250 |
Ian H |
5,936 |
25,128 |
2000 |
ZIM |
2Q24 |
4Q24 |
32,500 |
GSL Tripoli |
5,470 |
22,259 |
2009 |
Maersk |
4Q24 |
4Q27 |
36,500 (9) |
GSL Kithira |
5,470 |
22,108 |
2009 |
Maersk |
4Q24 |
1Q28 |
36,500 (9) |
GSL Tinos |
5,470 |
22,067 |
2010 |
Maersk |
4Q24 |
4Q27 |
36,500 (9) |
GSL Syros |
5,470 |
22,098 |
2010 |
Maersk |
4Q24 |
4Q27 |
36,500 (9) |
Dolphin II |
5,095 |
20,596 |
2007 |
OOCL |
1Q25 |
3Q25 |
53,500 |
Orca I |
5,095 |
20,633 |
2006 |
Maersk |
2Q24 |
4Q25 |
21,000 (10) |
CMA CGM Alcazar |
5,089 |
20,087 |
2007 |
CMA CGM |
3Q26 |
1Q27 |
35,500 |
GSL Château d’If |
5,089 |
19,994 |
2007 |
CMA CGM |
4Q26 |
1Q27 |
35,500 |
GSL Susan |
4,363 |
17,309 |
2008 |
CMA CGM |
3Q27 |
1Q28 |
Footnote (11) |
CMA CGM Jamaica |
4,298 |
17,272 |
2006 |
CMA CGM |
1Q28 |
2Q28 |
Footnote (11) |
CMA CGM Sambhar |
4,045 |
17,429 |
2006 |
CMA CGM |
1Q28 |
2Q28 |
Footnote (11) |
CMA CGM America |
4,045 |
17,428 |
2006 |
CMA CGM |
1Q28 |
2Q28 |
Footnote (11) |
GSL Rossi |
3,421 |
16,420 |
2012 |
ZIM |
1Q26 |
3Q26 |
38,875 (12) |
GSL Alice |
3,421 |
16,543 |
2014 |
CMA CGM |
2Q25 |
2Q25 |
20,500 |
GSL Eleftheria |
3,404 |
16,642 |
2013 |
Maersk |
3Q25 |
4Q25 |
37,975 |
GSL Melina |
3,404 |
16,703 |
2013 |
Hapag-Lloyd |
2Q24 |
3Q24 |
21,000 |
GSL Valerie |
2,824 |
11,971 |
2005 |
ZIM |
1Q25 |
3Q25 |
32,939 (13) |
Matson Molokai |
2,824 |
11,949 |
2007 |
Matson |
2Q25 |
3Q25 |
36,600 |
GSL Lalo |
2,824 |
11,950 |
2006 |
MSC |
1Q24 |
2Q24 |
17,500 |
GSL Mercer |
2,824 |
11,970 |
2007 |
ONE |
4Q24 |
2Q25 |
35,750 |
Athena |
2,762 |
13,538 |
2003 |
Hapag-Lloyd |
2Q24 |
2Q24 |
21,500 |
GSL Elizabeth |
2,741 |
11,507 |
2006 |
Unifeeder |
1Q24 |
2Q24 |
15,250 |
Beethoven (tbr GSL Chloe)
(15) |
2,546 |
12,212 |
2012 |
ONE |
4Q24 |
1Q25 |
33,000 |
GSL Maren |
2,546 |
12,243 |
2014 |
Swire |
1Q24 |
2Q24 |
18,200 |
Maira |
2,506 |
11,453 |
2000 |
Hapag-Lloyd |
3Q24 |
4Q24 |
16,000 |
Nikolas |
2,506 |
11,370 |
2000 |
CMA CGM |
1Q24 |
1Q24 |
16,750 |
Newyorker |
2,506 |
11,463 |
2001 |
CMA CGM |
1Q24 |
3Q24 |
20,700 |
Manet |
2,272 |
11,727 |
2001 |
OOCL |
4Q24 |
2Q25 |
32,000 |
Keta |
2,207 |
11,731 |
2003 |
CMA CGM |
1Q25 |
1Q25 |
25,000 |
Julie |
2,207 |
11,731 |
2002 |
Maersk |
2Q25 |
3Q25 |
Footnote (14) |
Kumasi |
2,207 |
11,791 |
2002 |
Wan Hai |
1Q25 |
2Q25 |
38,000 |
Akiteta |
2,207 |
11,731 |
2002 |
OOCL |
4Q24 |
1Q25 |
32,000 |
(1) |
Modern design, high reefer capacity, fuel-efficient vessel. |
(2) |
In many instances charterers have
the option to extend a charter beyond the nominal latest expiry
date by the amount of time that the vessel was off hire during the
course of that charter. This additional charter time (“Offhire
Extension”) is computed at the end of the initially contracted
charter period. The Latest Charter Expiry Dates shown in this table
have been adjusted to reflect offhire accrued up to December 31,
2023 plus estimated offhire scheduled to occur during the remaining
lifetimes of the respective charters. However, as actual offhire
can only be calculated at the end of each charter, in some cases
actual Offhire Extensions – if invoked by charterers – may exceed
the Latest Charter Expiry Dates indicated. |
(3) |
Anthea Y. The charter is expected
to generate annualized Adjusted EBITDA of approximately $11.8
million. |
(4) |
MSC Tianjin, MSC Qingdao and
Agios Dimitrios were each forward fixed for minimum 36 months –
maximum 38 months. The new charters are expected to commence
between 2Q 2024 and 3Q 2024, after the vessels are drydocked and
are expected to generate annualized Adjusted EBITDA of
approximately $6.9 million, $5.2 million, and $5.9 million,
respectively. MSC Qingdao & Agios Dimitrios are fitted with
Exhaust Gas Cleaning Systems (“scrubbers”). |
(5) |
GSL Ningbo was chartered to MSC
at $22,500 per day to 3Q 2023. Thereafter, the charter was extended
by 48 to 52 months, at a rate expected to generate annualized
Adjusted EBITDA of approximately $16.5 million. |
(6) |
GSL Alexandra, GSL Sofia, GSL
Effie and GSL Lydia delivered in 2Q 2023. Contract cover for each
vessel is for a minimum firm period of 24 months from the date each
vessel was delivered, with charterers holding one year extension
options. The vessels are expected to generate aggregate Adjusted
EBITDA of approximately $76.6 million over the minimum firm period,
increasing to $95.3 million if all options are exercised. |
(7) |
Colombia Express (ex Mary),
Kristina, Katherine, Alexandra, Alexis, Olivia I were forward fixed
to Hapag-Lloyd for five years, followed by two periods of 12 months
each at the option of the charterer. The new charter for Colombia
Express (ex Mary) commenced in early 2024. The new charters for the
remaining vessels are scheduled to commence as each of the existing
charters expire, on a staggered basis, between approximately 2Q
2024 and late 2024. The charters are expected to generate average
annualized Adjusted EBITDA of approximately $13.1 million per
ship. |
(8) |
GSL Maria, GSL Violetta, GSL
Arcadia, GSL MYNY, GSL Melita, GSL Tegea and GSL Dorothea. Contract
cover for each ship is for a firm period of at least three years
from the date each vessel was delivered in 2021, with charterers
holding a one-year extension option on each charter (at a rate of
$12,900 per day), followed by a second option (at a rate of $12,700
per day) with the period determined by – and terminating prior to –
each vessel’s 25th year drydocking & special survey. |
(9) |
GSL Tripoli, GSL Kithira, GSL
Tinos, and GSL Syros. Ultra-high reefer ships of 5,470 TEU each.
Contract cover on each ship is for a firm period of three years,
from their delivery dates in 2021, at a rate of $36,500 per day,
with a period of an additional three years (at $17,250 per day) at
charterers’ option. |
(10) |
Orca I. Chartered at $21,000 per
day through to the median expiry of the charter in 2Q 2024;
thereafter the charterer has the option in 1Q 2024 to charter the
vessel for a further 12-14 months at the same rate from 3Q
2024. |
(11) |
GSL Susan, CMA CGM Jamaica, CMA
CGM Sambhar and CMA CGM America were chartered at rates expected to
generate average annualized Adjusted EBITDA of approximately $11.2
million per vessel. |
(12) |
GSL Rossi. Chartered at an
average rate of $36,474 per day, $38,000 to 1Q 2025 and $35,000 for
the remaining period. |
(13) |
GSL Valerie. Chartered at an
average rate of $32,939 per day, $36,000 to 1Q 2024 and $32,000 for
the remaining period. |
(14) |
Julie. Chartered at a rate
expected to generate annualized Adjusted EBITDA of approximately
$2.0 million. |
(15) |
“tbr” means “to be renamed”. On
January 3, 2024, Mary was renamed to Colombia Express. On January
26, 2024, Beethoven was renamed to GSL Chloe. |
|
|
Conference Call and Webcast
Global Ship Lease will hold a conference call to
discuss the Company's results for the three months and year ended
December 31, 2023 today, Monday March 4, 2024 at 10:30 a.m. Eastern
Time. There are two ways to access the conference call:
(1) Dial-in: (646)
307-1963 or (800) 715-9871; Event ID: 1599924
Please dial in at least 10 minutes prior to
10:30 a.m. Eastern Time to ensure a prompt start to the call.
(2) Live Internet
webcast and slide presentation: http://www.globalshiplease.com
The webcast will also be archived on the
Company’s website: http://www.globalshiplease.com.
Annual Report on Form 20-F
The Company’s Annual Report for 2022 was filed
with the Securities and Exchange Commission (the “Commission”) on
March 23, 2023. A copy of the report can be found under the
Investor Relations section (Annual Reports) of the Company’s
website at http://www.globalshiplease.com or on the Commission’s
website at www.sec.gov. Shareholders may request a hard copy of the
audited financial statements free of charge by contacting the
Company at info@globalshiplease.com or by writing to Global Ship
Lease, Inc, care of Global Ship Lease Services Limited, 25 Wilton
Road, London SW1V ILW.
About Global Ship Lease
Global Ship Lease is a leading independent owner
of containerships with a diversified fleet of mid-sized and smaller
containerships. Incorporated in the Marshall Islands, Global Ship
Lease commenced operations in December 2007 with a business of
owning and chartering out containerships under fixed-rate charters
to top tier container liner companies. It was listed on the New
York Stock Exchange in August 2008.
As of December 31, 2023, Global Ship
Lease owned 68 containerships ranging from 2,207 to 11,040
TEU, with an aggregate capacity of 375,406 TEU. 36 ships are
wide-beam Post-Panamax.
As of December 31, 2023, the average remaining
term of the Company’s charters, to the mid-point of redelivery,
including options under the Company’s control and other than if a
redelivery notice has been received, was 2.1 years on a
TEU-weighted basis. Contracted revenue on the same basis
was $1.72 billion. Contracted revenue was $2.12 billion,
including options under charterers’ control and with latest
redelivery date, representing a weighted average remaining term of
2.8 years.
Reconciliation of Non-U.S. GAAP Financial
Measures
To supplement our financial information
presented in accordance with U.S. GAAP, we use certain “non-GAAP
financial measures” as such term is defined in Regulation G
promulgated by the SEC. Generally, a non-GAAP financial measure is
a numerical measure of a company’s operating performance, financial
position or cash flows that excludes or includes amounts that are
included in, or excluded from, the most directly comparable measure
calculated and presented in accordance with U.S. GAAP. We believe
that the presentation of these measures provides investors with
greater transparency and supplemental data relating to our
financial condition and results of operations, and therefore a more
complete understanding of factors affecting our business than U.S.
GAAP measures alone. In addition, we believe that the presentation
of these matters is useful to investors for period-to-period
comparison of results as the items may reflect certain unique
and/or non-operating items such as impairment charges, contract
termination costs or items outside of our control.
We believe that the presentation of the
following non-U.S. GAAP financial measures is useful to investors
because they are frequently used by securities analysts, investors
and other interested parties in the evaluation of companies in our
industry.
A. Adjusted EBITDAAdjusted
EBITDA represents net income available to common shareholders
before interest income and expense, earnings allocated to preferred
shares, income taxes, depreciation and amortization of drydocking
net costs, gains or losses on the sale of vessels, amortization of
intangible liabilities, charges for share based compensation, fair
value adjustment on derivatives, the effect of the straight lining
of time charter modifications, and impairment losses. Adjusted
EBITDA is a non-U.S. GAAP quantitative measure used to assist in
the assessment of our ability to generate cash from our operations.
We believe that the presentation of Adjusted EBITDA is useful to
investors because it is frequently used by securities analysts,
investors and other interested parties in the evaluation of
companies in our industry. Adjusted EBITDA is not defined in U.S.
GAAP and should not be considered to be an alternative to net
income or any other financial metric required by such accounting
principles. Our use of Adjusted EBITDA may vary from the use of
similarly titled measures by others in our industry.
Adjusted EBITDA is presented herein both on a
historic basis and on a forward-looking basis in certain instances.
We do not provide a reconciliation of such
forward looking non-U.S. GAAP financial measure
to the most directly comparable U.S. GAAP measure because such
U.S. GAAP financial measure on a forward-looking basis is not
available to us without unreasonable effort.
ADJUSTED EBITDA - UNAUDITED
(thousands of U.S. dollars)
|
|
|
|
|
|
|
|
Three months |
Three months |
Year |
Year |
|
|
ended |
ended |
ended |
ended |
|
|
December 31, |
December 31, |
December 31, |
December 31, |
|
|
2023 |
2022 |
2023 |
2022 |
|
|
|
|
|
|
Net income
available to Common Shareholders |
64,665 |
|
72,621 |
|
294,964 |
|
283,389 |
|
|
|
|
|
|
|
Adjust: |
Depreciation and amortization |
24,391 |
|
20,656 |
|
91,727 |
|
81,303 |
|
|
Amortization of
intangible liabilities |
(1,517 |
) |
(8,433 |
) |
(8,080 |
) |
(41,158 |
) |
|
Impairment of
vessels |
18,830 |
|
3,033 |
|
18,830 |
|
3,033 |
|
|
Fair value
adjustment on derivative asset |
4,335 |
|
1,623 |
|
5,372 |
|
(9,685 |
) |
|
Interest
income |
(2,882 |
) |
(1,317 |
) |
(9,777 |
) |
(2,512 |
) |
|
Interest
expense |
11,201 |
|
10,405 |
|
44,824 |
|
75,289 |
|
|
Share based
compensation |
2,505 |
|
2,222 |
|
10,189 |
|
10,104 |
|
|
Earnings allocated
to preferred shares |
2,384 |
|
2,384 |
|
9,536 |
|
9,536 |
|
|
Income tax |
443 |
|
- |
|
448 |
|
(50 |
) |
|
Effect from
straight lining time charter modifications |
2,782 |
|
(3,208 |
) |
4,025 |
|
(10,899 |
) |
Adjusted
EBITDA |
127,137 |
|
99,986 |
|
462,058 |
|
398,350 |
|
|
|
|
|
|
|
|
|
|
B. Normalized net
incomeNormalized net income represents net income available to
common shareholders after adjusting for certain non-recurring
items. Normalized net income is a non-U.S. GAAP quantitative
measure which we believe will assist investors and analysts who
often adjust reported net income for items that do not affect
operating performance or operating cash generated. Normalized net
income is not defined in U.S. GAAP and should not be considered to
be an alternate to net income or any other financial metric
required by such accounting principles. Our use of Normalized net
income may vary from the use of similarly titled measures by others
in our industry.
NORMALIZED NET INCOME – UNAUDITED
(thousands of U.S. dollars)
|
|
|
|
|
|
|
|
Three months |
Three months |
|
|
|
|
ended |
ended |
Year ended |
Year ended |
|
|
December 31, |
December 31, |
December 31, |
December 31, |
|
|
2023 |
2022 |
2023 |
2022 |
|
|
|
|
|
|
|
Net income
available to Common Shareholders |
64,665 |
72,621 |
294,964 |
283,389 |
|
|
|
|
|
|
|
Adjust: |
Fair value
adjustment on derivative assets |
4,335 |
1,623 |
5,372 |
(9,685 |
) |
|
Impairment of
vessels |
18,830 |
3,033 |
18,830 |
3,033 |
|
|
Premium paid on
redemption of 2024 Notes |
- |
- |
- |
2,350 |
|
|
Accelerated write
off of deferred financing charges related to redemption of 2024
Notes |
- |
- |
- |
2,104 |
|
|
Accelerated write
off of premium related to redemption of 2024 Notes |
- |
- |
- |
(1,344 |
) |
|
Accelerated write
off of deferred financing charges related to full repayment of
Hellenic Credit Facility |
- |
- |
- |
298 |
|
|
Accelerated write
off of deferred financing charges related to full repayment of
Hayfin Credit Facility |
- |
- |
- |
2,822 |
|
|
Prepayment fee on
repayment of Hayfin Credit Facility |
- |
- |
- |
11,229 |
|
|
Prepayment fee on
repayment of Blue Ocean Credit Facility |
- |
- |
- |
3,968 |
|
|
Accelerated write
off of deferred financing charges related to full repayment of Blue
Ocean Credit Facility |
- |
- |
- |
83 |
|
|
Accelerated write
off of deferred financing charges related to partial repayment of
HCOB-CACIB Credit Facility |
- |
- |
108 |
- |
|
|
Forfeit of certain
stock-based compensation awards |
- |
- |
451 |
- |
|
Normalized net
income |
87,830 |
77,277 |
319,725 |
298,247 |
|
|
|
|
|
|
|
C. Normalized Earnings per
ShareNormalized Earnings per Share represents Earnings per Share
after adjusting for certain non-recurring items. Normalized
Earnings per Share is a non-U.S. GAAP quantitative measure which we
believe will assist investors and analysts who often adjust
reported Earnings per Share for items that do not affect operating
performance or operating cash generated. Normalized Earnings per
Share is not defined in U.S. GAAP and should not be considered to
be an alternate to Earnings per Share as reported or any other
financial metric required by such accounting principles. Our use of
Normalized Earnings per Share may vary from the use of similarly
titled measures by others in our industry.
NORMALIZED EARNINGS PER SHARE – UNAUDITED
|
|
|
|
|
|
|
|
Three months |
Three months |
|
|
|
|
ended |
ended |
Year ended |
Year ended |
|
|
December 31, |
December 31, |
December 31, |
December 31, |
|
|
2023 |
2022 |
2023 |
2022 |
|
|
|
|
|
|
EPS as reported
(USD) |
1.84 |
2.01 |
8.33 |
7.74 |
Normalized net
income adjustments-Class A common shares (in thousands USD) |
23,165 |
4,656 |
24,761 |
14,858 |
Weighted average
number of Class A Common shares |
35,203,657 |
36,073,240 |
35,405,458 |
36,603,134 |
Adjustment on EPS
(USD) |
0.65 |
0.13 |
0.70 |
0.41 |
Normalized EPS
(USD) |
2.49 |
2.14 |
9.03 |
8.15 |
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", “should”, "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 future growth of the container shipping
industry, including the rates of annual demand and supply
growth;
- geo-political
events such as the conflict in Ukraine and the recent escalation of
the Israel-Gaza conflict;
- the potential
disruption of shipping routes, including due to lower water levels
in the Panama Canal and the ongoing attacks by Houthis in the Red
Sea;
- the length and
severity of the ongoing outbreak of the novel coronavirus
(COVID-19) around the world and governmental responses
thereto;
- the financial
condition of our charterers and their ability and willingness to
pay charterhire to us in accordance with the charters and our
expectations regarding the same;
- the overall
health and condition of the U.S. and global financial markets;
- our financial
condition and liquidity, including our ability to obtain additional
financing to fund capital expenditures, vessel acquisitions and for
other general corporate purposes and our ability to meet our
financial covenants and repay our borrowings;
- our expectations
relating to dividend payments and expectations of our ability to
make such payments including the availability of cash and the
impact of constraints under our loan agreements;
- future
acquisitions, business strategy and expected capital spending;
- operating
expenses, availability of key employees, crew, number of off-hire
days, drydocking and survey requirements, costs of regulatory
compliance, insurance costs and general and administrative
costs;
- general market
conditions and shipping industry trends, including charter rates
and factors affecting supply and demand;
- assumptions
regarding interest rates and inflation;
- changes in the
rate of growth of global and various regional economies;
- risks incidental
to vessel operation, including piracy, discharge of pollutants and
vessel accidents and damage including total or constructive total
loss;
- estimated future
capital expenditures needed to preserve our capital base;
- our expectations
about the availability of vessels to purchase, the time that it may
take to construct new vessels, or the useful lives of our
vessels;
- our continued
ability to enter into or renew charters including the re-chartering
of vessels on the expiry of existing charters, or to secure
profitable employment for our vessels in the spot market;
- our ability to
realize expected benefits from our acquisition of secondhand
vessels;
- our ability to
capitalize on our management’s and 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;
- changes in laws
and regulations (including environmental rules and
regulations);
- potential
liability from future litigation; and
- other important
factors described from time to time in the reports we file with the
U.S. Securities and Exchange Commission (the “SEC”).
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 and risks Global Ship Lease describes
in the reports it will file from time to time with the SEC after
the date of this communication.
Investor and Media Contacts: The IGB GroupBryan
Degnan646-673-9701orLeon Berman 212-477-8438
Global Ship Lease, Inc.
Interim Unaudited Condensed
Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars except
share data)
|
December 31, 2023 |
|
December 31, 2022 |
ASSETS |
|
|
|
|
|
CURRENT
ASSETS |
|
|
|
|
|
Cash and cash equivalents |
$ |
138,640 |
|
$ |
120,130 |
Time deposits |
|
14,000 |
|
|
8,550 |
Restricted cash |
|
56,803 |
|
|
28,363 |
Accounts receivable, net |
|
4,741 |
|
|
3,684 |
Inventories |
|
15,764 |
|
|
12,237 |
Prepaid expenses and other
current assets |
|
40,464 |
|
|
33,765 |
Derivative asset |
|
24,639 |
|
|
29,645 |
Due from related parties |
|
626 |
|
|
673 |
Total current
assets |
$ |
295,677 |
|
$ |
237,047 |
NON - CURRENT
ASSETS |
|
|
|
|
|
Vessels in operation |
$ |
1,664,101 |
|
$ |
1,623,307 |
Advances for vessels'
acquisitions and other additions |
|
12,210 |
|
|
4,881 |
Deferred charges, net |
|
73,720 |
|
|
54,663 |
Other non - current
assets |
|
23,935 |
|
|
31,022 |
Derivative asset, net of
current portion |
|
16,867 |
|
|
33,858 |
Restricted cash, net of
current portion |
|
85,270 |
|
|
121,437 |
Total non - current
assets |
|
1,876,103 |
|
|
1,869,168 |
TOTAL
ASSETS |
$ |
2,171,780 |
|
$ |
2,106,215 |
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
|
Accounts payable |
$ |
17,601 |
|
$ |
22,755 |
Accrued liabilities |
|
28,538 |
|
|
36,038 |
Current portion of long-term
debt |
|
193,253 |
|
|
189,832 |
Current portion of deferred
revenue |
|
40,331 |
|
|
12,569 |
Due to related parties |
|
717 |
|
|
572 |
Total current
liabilities |
$ |
280,440 |
|
$ |
261,766 |
LONG-TERM
LIABILITIES |
|
|
|
|
|
Long - term debt, net of
current portion and deferred financing costs |
$ |
619,175 |
|
$ |
744,557 |
Intangible liabilities-charter
agreements |
|
5,662 |
|
|
14,218 |
Deferred revenue, net of
current portion |
|
82,115 |
|
|
119,183 |
Total non - current
liabilities |
|
706,952 |
|
|
877,958 |
Total
liabilities |
$ |
987,392 |
|
$ |
1,139,724 |
Commitments and
Contingencies |
|
|
|
|
- |
SHAREHOLDERS'
EQUITY |
|
|
|
|
|
Class A common shares -
authorized214,000,000 shares with a $0.01 par value35,188,323
shares issued and outstanding (2022 – 35,990,288 shares) |
$ |
351 |
|
$ |
359 |
Series B Preferred Shares -
authorized104,000 shares with a $0.01 par value43,592 shares issued
and outstanding (2022 – 43,592 shares) |
|
- |
|
|
- |
Additional paid in
capital |
|
676,592 |
|
|
688,262 |
Retained earnings |
|
488,105 |
|
|
246,390 |
Accumulated other
comprehensive income |
|
19,340 |
|
|
31,480 |
Total shareholders'
equity |
|
1,184,388 |
|
|
966,491 |
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
$ |
2,171,780 |
|
$ |
2,106,215 |
|
|
|
|
|
|
Global Ship Lease, Inc.
Interim Unaudited Condensed
Consolidated Statements of Income
(Expressed in thousands of U.S. dollars)
|
Three months ended December 31, |
|
Years ended December 31, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
OPERATING
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
Time charter revenue (include related party revenues of $nil and
$nil for each of the three month periods ended December 31, 2023
and 2022, respectively, and $nil and $66,929 for each of the years
ended December 31, 2023 and 2022, respectively) |
$ |
177,377 |
|
|
$ |
156,589 |
|
|
$ |
666,715 |
|
|
$ |
604,487 |
|
Amortization of intangible
liabilities-charter agreements (includes related party amortization
of intangible liabilities-charter agreements of $nil and $nil for
the three month periods ended December 31, 2023 and 2022,
respectively, and $nil and $5,385 for each of the years ended
December 31, 2023 and 2022, respectively) |
|
1,517 |
|
|
|
8,433 |
|
|
|
8,080 |
|
|
|
41,158 |
|
Total Operating
Revenues |
|
178,894 |
|
|
|
165,022 |
|
|
|
674,795 |
|
|
|
645,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
Vessel operating expenses
(include related party vessel operating expenses of $5,014 and
$3,956 for each of the three month periods ended December 31, 2023
and 2022, respectively, and $19,086 and $16,642 for each of the
years ended December 31, 2023 and 2022, respectively) |
|
46,953 |
|
|
|
45,561 |
|
|
|
179,221 |
|
|
|
167,444 |
|
Time charter and voyage expenses
(include related party time charter and voyage expenses of $2,194
and $1,643 for the three month periods ended December 31, 2023 and
2022, respectively, and $7,995 and $6,289 for each of the years
ended December 31, 2023 and 2022, respectively) |
|
5,397 |
|
|
|
6,560 |
|
|
|
23,582 |
|
|
|
21,154 |
|
Depreciation and
amortization |
|
24,391 |
|
|
|
20,656 |
|
|
|
91,727 |
|
|
|
81,303 |
|
Impairment of vessels |
|
18,830 |
|
|
|
3,033 |
|
|
|
18,830 |
|
|
|
3,033 |
|
General and administrative
expenses |
|
4,469 |
|
|
|
4,078 |
|
|
|
18,217 |
|
|
|
18,526 |
|
Operating
Income |
|
78,854 |
|
|
|
85,134 |
|
|
|
343,218 |
|
|
|
354,185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-OPERATING
INCOME/(EXPENSES) |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
2,882 |
|
|
|
1,317 |
|
|
|
9,777 |
|
|
|
2,512 |
|
Interest and other finance
expenses |
|
(11,201 |
) |
|
|
(10,405 |
) |
|
|
(44,824 |
) |
|
|
(75,289 |
) |
Other income, net |
|
1,292 |
|
|
|
582 |
|
|
|
2,149 |
|
|
|
1,782 |
|
Fair value adjustment on
derivative asset |
|
(4,335 |
) |
|
|
(1,623 |
) |
|
|
(5,372 |
) |
|
|
9,685 |
|
Total non-operating
expenses |
|
(11,362 |
) |
|
|
(10,129 |
) |
|
|
(38,270 |
) |
|
|
(61,310 |
) |
Income before income
taxes |
|
67,492 |
|
|
|
75,005 |
|
|
|
304,948 |
|
|
|
292,875 |
|
Income taxes |
|
(443 |
) |
|
|
- |
|
|
|
(448 |
) |
|
|
50 |
|
Net
Income |
|
67,049 |
|
|
|
75,005 |
|
|
|
304,500 |
|
|
|
292,925 |
|
Earnings allocated to Series B
Preferred Shares |
|
(2,384 |
) |
|
|
(2,384 |
) |
|
|
(9,536 |
) |
|
|
(9,536 |
) |
Net Income available
to Common Shareholders |
$ |
64,665 |
|
|
$ |
72,621 |
|
|
$ |
294,964 |
|
|
$ |
283,389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Ship Lease, Inc.
Interim Unaudited Condensed Consolidated
Statements of Cash Flows
(Expressed in thousands of U.S. dollars)
|
|
Three months ended December 31, |
|
|
Years ended December 31, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
67,049 |
|
|
$ |
75,005 |
|
|
$ |
304,500 |
|
|
$ |
292,925 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
$ |
24,391 |
|
|
$ |
20,656 |
|
|
$ |
91,727 |
|
|
$ |
81,303 |
|
Impairment of vessels |
|
18,830 |
|
|
|
3,033 |
|
|
|
18,830 |
|
|
|
3,033 |
|
Amounts reclassified to/(from)
other comprehensive income |
|
294 |
|
|
|
(1,091 |
) |
|
|
214 |
|
|
|
(1,091 |
) |
Amortization of derivative
assets’ premium |
|
1,186 |
|
|
|
624 |
|
|
|
4,271 |
|
|
|
1,123 |
|
Amortization of deferred
financing costs |
|
1,411 |
|
|
|
1,482 |
|
|
|
5,526 |
|
|
|
11,233 |
|
Amortization of original issue
premium on repurchase of notes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
762 |
|
Amortization of intangible
liabilities-charter agreements |
|
(1,517 |
) |
|
|
(8,433 |
) |
|
|
(8,080 |
) |
|
|
(41,158 |
) |
Fair value adjustment on
derivative asset |
|
4,335 |
|
|
|
1,623 |
|
|
|
5,372 |
|
|
|
(9,685 |
) |
Prepayment fees on debt
repayment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
15,197 |
|
Stock-based compensation
expense |
|
2,505 |
|
|
|
2,222 |
|
|
|
10,189 |
|
|
|
10,104 |
|
Changes in operating
assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Decrease/(increase) in
accounts receivable and other assets |
$ |
2,842 |
|
|
$ |
(12,012 |
) |
|
$ |
(669 |
) |
|
$ |
(26,017 |
) |
Increase in inventories |
|
(1,650 |
) |
|
|
(682 |
) |
|
|
(3,527 |
) |
|
|
(827 |
) |
Increase in derivative
asset |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(15,370 |
) |
Increase/(decrease) in
accounts payable and other liabilities |
|
208 |
|
|
|
12,298 |
|
|
|
(5,890 |
) |
|
|
11,835 |
|
Decrease/(increase) in related
parties' balances, net |
|
192 |
|
|
|
(294 |
) |
|
|
192 |
|
|
|
2,253 |
|
(Decrease)/increase in
deferred revenue |
|
(8,838 |
) |
|
|
2,929 |
|
|
|
(9,306 |
) |
|
|
21,968 |
|
Payments for drydock and
special survey costs(1) |
|
(5,779 |
) |
|
|
(8,792 |
) |
|
|
(38,341 |
) |
|
|
(30,105 |
) |
Unrealized foreign exchange
(gain)/loss |
|
- |
|
|
|
(1 |
) |
|
|
- |
|
|
|
1 |
|
Net cash provided by
operating activities |
$ |
105,459 |
|
|
$ |
88,567 |
|
|
$ |
375,008 |
|
|
$ |
327,484 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
Acquisition of vessels |
$ |
- |
|
|
$ |
- |
|
|
$ |
(123,300 |
) |
|
$ |
- |
|
Cash paid for vessel
expenditures |
|
(7,017 |
) |
|
|
(1,031 |
) |
|
|
(19,586 |
) |
|
|
(5,460 |
) |
Advances for vessel
acquisitions and other additions |
|
(2,801 |
) |
|
|
(937 |
) |
|
|
(9,587 |
) |
|
|
(3,772 |
) |
Net proceeds from sale of
vessel |
|
- |
|
|
|
- |
|
|
|
5,940 |
|
|
|
- |
|
Time deposits
withdrawal/(acquired) |
|
- |
|
|
|
8,850 |
|
|
|
(5,450 |
) |
|
|
(650 |
) |
Net cash (used
in)/provided by investing activities |
$ |
(9,818 |
) |
|
$ |
6,882 |
|
|
$ |
(151,983 |
) |
|
$ |
(9,882 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
Repurchase of 2024 Notes,
including premium |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
(119,871 |
) |
Proceeds from drawdown of
credit facilities |
|
- |
|
|
|
- |
|
|
|
76,000 |
|
|
|
60,000 |
|
Proceeds from 2027 Secured
Notes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
350,000 |
|
Repayment of credit facilities
and sale and leaseback |
|
(51,081 |
) |
|
|
(49,976 |
) |
|
|
(202,348 |
) |
|
|
(167,056 |
) |
Repayment of refinanced debt,
including prepayment fees |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(276,671 |
) |
Deferred financing costs
paid |
|
- |
|
|
|
- |
|
|
|
(1,140 |
) |
|
|
(9,655 |
) |
Cancellation of Class A common
shares |
|
(1,548 |
) |
|
|
(5,101 |
) |
|
|
(21,969 |
) |
|
|
(20,011 |
) |
Proceeds from offering of
Series B preferred shares, net of offering costs |
|
- |
|
|
|
(17 |
) |
|
|
- |
|
|
|
(17 |
) |
Class A common shares-dividend
paid |
|
(13,258 |
) |
|
|
(13,548 |
) |
|
|
(53,249 |
) |
|
|
(50,497 |
) |
Series B preferred
shares-dividend paid |
|
(2,384 |
) |
|
|
(2,384 |
) |
|
|
(9,536 |
) |
|
|
(9,536 |
) |
Net cash used in
financing activities |
$ |
(68,271 |
) |
|
$ |
(71,026 |
) |
|
$ |
(212,242 |
) |
|
$ |
(243,314 |
) |
Net increase in cash
and cash equivalents and restricted cash |
|
27,370 |
|
|
|
24,423 |
|
|
|
10,783 |
|
|
|
74,288 |
|
Cash and cash equivalents and
restricted cash at beginning of the period |
|
253,343 |
|
|
|
245,507 |
|
|
|
269,930 |
|
|
|
195,642 |
|
Cash and cash
equivalents and restricted cash at end of the period |
$ |
280,713 |
|
|
$ |
269,930 |
|
|
$ |
280,713 |
|
|
$ |
269,930 |
|
Supplementary Cash
Flow Information: |
|
|
|
|
|
|
|
|
|
|
|
Cash paid for interest |
|
16,985 |
|
|
|
17,019 |
|
|
|
67,997 |
|
|
|
51,490 |
|
Cash received from interest
rate caps |
|
8,169 |
|
|
|
5,998 |
|
|
|
32,549 |
|
|
|
9,245 |
|
Non-cash financing
activities: |
|
|
|
|
|
|
|
|
|
|
|
Unpaid offering costs |
|
- |
|
|
|
283 |
|
|
|
- |
|
|
|
283 |
|
Unrealized (loss)/gain on
derivative assets |
|
(11,014 |
) |
|
|
(4,042 |
) |
|
|
(16,625 |
) |
|
|
31,221 |
|
(1) During the year ended December 31, 2023, the
Company corrected prior year statements of cash flows and
reclassified payments for drydocking and special survey costs from
investing outflows to operating outflows which resulted in a
decrease in investing outflows and increase in operating outflows
of $4,741 and $24,457 for the three months and year ended December
31, 2022, respectively. The Company evaluated the reclassifications
from both a quantitative and qualitative perspective and determined
the impacts were immaterial to the previously issued interim and
annual financial statements.
Global Ship Lease (NYSE:GSL)
過去 株価チャート
から 4 2024 まで 5 2024
Global Ship Lease (NYSE:GSL)
過去 株価チャート
から 5 2023 まで 5 2024