Marshall Islands
|
|
98-0467117
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer Identification Number)
|
Exhibit No.
|
Description
|
99.1
|
Press Release dated August 9, 2017
|
|
INTERNATIONAL SEAWAYS, INC.
(Registrant)
|
||
|
|
||
|
|
||
Date: August 9, 2017
|
By:
|
/s/James D. Small III | |
|
|
Name:
Title:
|
James D. Small III
Chief Administrative Officer, Senior Vice President, Secretary and General Counsel
|
Exhibit No.
|
Description
|
99.1
|
Press Release dated August 9, 2017
|
·
|
Time charter equivalent (TCE) revenues(A) for the second quarter were $69.3 million, compared to $101.0 million in the second quarter of 2016.
|
·
|
Net loss for the second quarter, reflecting $15.0 million of costs associated with the refinancing of the Company's debt facilities, was $11.6 million, or $(0.40) per diluted share, compared to net income of $30.5 million, or $1.05 per diluted share, in the second quarter of 2016.
|
·
|
Adjusted EBITDA(B) for the second quarter was $31.8 million, compared to $62.3 million in the same period of 2016.
|
·
|
Cash was $121.2 million as of June 30, 2017.
|
·
|
Closed on a new $50 million revolving credit facility and $500 million term loan facility in June 2017; subsequent to quarter's end, the term loan facility was upsized to $550 million.
|
·
|
Acquired two 2017-built Suezmax tanker newbuildings, the Seaways Hatteras and the Seaways Montauk, constructed at Hyundai Samho Heavy Industries shipyard, which were delivered to the Company in July 2017.
|
·
|
Entered into an agreement to sell a 2001-built MR, expected to close during the third quarter.
|
·
|
Signed two five-year contracts for our FSO joint ventures which are expected to generate in excess of $180 million of EBITDA for the Company over the five-year contract period.
|
($ in thousands, except per share amounts)
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||
Shipping Revenues:
|
||||||||||||||||
Pool revenues
|
$
|
42,339
|
$
|
66,705
|
$
|
92,112
|
$
|
157,234
|
||||||||
Time and bareboat charter revenues
|
14,442
|
28,660
|
31,792
|
50,343
|
||||||||||||
Voyage charter revenues
|
15,176
|
7,697
|
36,803
|
24,161
|
||||||||||||
Total Shipping Revenues
|
71,957
|
103,062
|
160,707
|
231,738
|
||||||||||||
Operating Expenses:
|
||||||||||||||||
Voyage expenses
|
2,677
|
2,107
|
7,295
|
6,074
|
||||||||||||
Vessel expenses
|
35,373
|
34,400
|
69,101
|
69,538
|
||||||||||||
Charter hire expenses
|
11,036
|
8,594
|
22,387
|
16,809
|
||||||||||||
Depreciation and amortization
|
19,099
|
20,025
|
37,715
|
40,106
|
||||||||||||
General and administrative
|
5,182
|
7,727
|
11,540
|
15,911
|
||||||||||||
Third-party debt modification fees
|
7,939
|
-
|
7,939
|
-
|
||||||||||||
Separation and transition costs
|
296
|
1,130
|
1,031
|
1,263
|
||||||||||||
Gain on disposal of vessels and other property
|
-
|
-
|
-
|
(171
|
)
|
|||||||||||
Total operating expenses
|
81,602
|
73,983
|
157,008
|
149,530
|
||||||||||||
(Loss)/income from vessel operations
|
(9,645
|
)
|
29,079
|
3,699
|
82,208
|
|||||||||||
Equity in income of affiliated companies
|
13,866
|
11,985
|
27,472
|
23,605
|
||||||||||||
Operating income
|
4,221
|
41,064
|
31,171
|
105,813
|
||||||||||||
Other (expense)/income
|
(6,760
|
)
|
(175
|
)
|
(6,674
|
)
|
1,241
|
|||||||||
(Loss)/income before interest expense, reorganization items and income taxes
|
(2,539
|
)
|
40,889
|
24,497
|
107,054
|
|||||||||||
Interest expense
|
(9,076
|
)
|
(9,690
|
)
|
(18,041
|
)
|
(20,432
|
)
|
||||||||
(Loss)/income before reorganization items and income taxes
|
(11,615
|
)
|
31,199
|
6,456
|
86,622
|
|||||||||||
Reorganization items, net
|
-
|
(520
|
)
|
-
|
3,951
|
|||||||||||
(Loss)/income before income taxes
|
(11,615
|
)
|
30,679
|
6,456
|
90,573
|
|||||||||||
Income tax provision
|
(4
|
)
|
(173
|
)
|
(8
|
)
|
(177
|
)
|
||||||||
Net (loss)/income
|
$
|
(11,619
|
)
|
$
|
$30,506
|
$
|
6,448
|
$
|
90,396
|
|||||||
Weighted Average Number of Common Shares Outstanding:
|
||||||||||||||||
Basic
|
29,194,240
|
29,157,387
|
29,187,286
|
29,157,387
|
||||||||||||
Diluted
|
29,194,240
|
29,157,387
|
29,221,779
|
29,157,387
|
||||||||||||
Per Share Amounts:
|
||||||||||||||||
Basic and diluted net (loss)/income per share
|
$
|
(0.40
|
)
|
$
|
1.05
|
$
|
0.22
|
$
|
3.10
|
June 30,
|
December 31,
|
|||||||
2017
|
2016
|
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
ASSETS
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
121,230
|
$
|
92,001
|
||||
Voyage receivables
|
62,651
|
66,918
|
||||||
Other receivables
|
3,797
|
5,302
|
||||||
Receivable from OSG
|
6
|
-
|
||||||
Inventories
|
1,556
|
1,338
|
||||||
Prepaid expenses and other current assets
|
8,951
|
5,350
|
||||||
Total Current Assets
|
198,191
|
170,909
|
||||||
Vessels and other property, less accumulated depreciation
|
1,089,782
|
1,100,050
|
||||||
Deferred drydock expenditures, net
|
39,710
|
30,557
|
||||||
Total Vessels, Deferred Drydock and Other Property
|
1,129,492
|
1,130,607
|
||||||
Investments in and advances to affiliated companies
|
372,109
|
358,681
|
||||||
Other assets
|
1,298
|
2,324
|
||||||
Total Assets
|
$
|
1,701,090
|
$
|
1,662,521
|
||||
LIABILITIES AND EQUITY
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable, accrued expenses and other current liabilities
|
$
|
29,721
|
$
|
38,237
|
||||
Payable to OSG
|
-
|
683
|
||||||
Current installments of long-term debt
|
22,600
|
6,183
|
||||||
Total Current Liabilities
|
52,321
|
45,103
|
||||||
Long-term debt
|
452,904
|
433,468
|
||||||
Other liabilities
|
4,834
|
4,438
|
||||||
Total Liabilities
|
510,059
|
483,009
|
||||||
Equity:
|
||||||||
Total Equity
|
1,191,031
|
1,179,512
|
||||||
Total Liabilities and Equity
|
$
|
1,701,090
|
$
|
1,662,521
|
($ in thousands)
|
||||||||
Six Months Ended June 30,
|
||||||||
2017
|
2016
|
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
Cash Flows from Operating Activities:
|
||||||||
Net Income
|
$
|
6,448
|
$
|
90,396
|
||||
Items included in net income not affecting cash flows:
|
||||||||
Depreciation and amortization
|
37,715
|
40,106
|
||||||
Amortization of debt discount and other deferred financing costs
|
3,930
|
3,121
|
||||||
Deferred financing costs write-off
|
7,020
|
2,729
|
||||||
Direct and allocated stock compensation, non-cash
|
1,733
|
1,351
|
||||||
Undistributed earnings of affiliated companies
|
(27,243
|
)
|
(24,230
|
)
|
||||
Allocated reorganization items, non-cash
|
-
|
(3,951
|
)
|
|||||
Other – net
|
130
|
-
|
||||||
Items included in net income related to investing and financing activities:
|
||||||||
Gain on disposal of vessels and other property
|
-
|
(171
|
)
|
|||||
Allocated general and administrative expenses recorded as capital contributions
|
-
|
801
|
||||||
Discount on repurchase of debt
|
-
|
(3,755
|
)
|
|||||
Payments for drydocking
|
(15,860
|
)
|
(2,514
|
)
|
||||
Changes in operating assets and liabilities
|
(10,182
|
)
|
18,907
|
|||||
Net cash provided by operating activities
|
3,691
|
122,790
|
||||||
Cash Flows from Investing Activities:
|
||||||||
Decrease in restricted cash
|
-
|
8,989
|
||||||
Expenditures for vessels and vessel improvements
|
(18,583
|
)
|
(24
|
)
|
||||
Expenditures for other property
|
(374
|
)
|
(14
|
)
|
||||
Investments in and advances to affiliated companies
|
(104
|
)
|
(987
|
)
|
||||
Repayments of advances from affiliated companies
|
18,500
|
18,500
|
||||||
Net cash (used in)/provided by investing activities
|
(561
|
)
|
26,464
|
|||||
Cash Flows from Financing Activities:
|
||||||||
Issuance of debt, net of issuance and deferred financing costs
|
486,302
|
-
|
||||||
Extinguishment of debt
|
(458,416
|
)
|
(65,167
|
)
|
||||
Payments on debt
|
(1,546
|
)
|
(11,974
|
)
|
||||
Dividend payments to OSG
|
-
|
(102,000
|
)
|
|||||
Cash paid to tax authority upon vesting of stock-based compensation
|
(241
|
)
|
(26
|
)
|
||||
Net cash provided by/(used in) financing activities
|
26,099
|
(179,167
|
)
|
|||||
Net increase/(decrease) in cash and cash equivalents
|
29,229
|
(29,913
|
)
|
|||||
Cash and cash equivalents at beginning of year
|
92,001
|
308,858
|
||||||
Cash and cash equivalents at end of period
|
$
|
121,230
|
$
|
278,945
|
Three Months Ended June 30, 2017
|
Three Months Ended June 30, 2016
|
|||||||||||||||||||||||
Spot
|
Fixed
|
Total
|
Spot
|
Fixed
|
Total
|
|||||||||||||||||||
Crude Tankers
|
||||||||||||||||||||||||
ULCC
|
||||||||||||||||||||||||
Average TCE Rate
|
$
|
—
|
$
|
32,176
|
$
|
—
|
$
|
44,850
|
||||||||||||||||
Number of Revenue Days
|
—
|
91
|
91
|
—
|
91
|
91
|
||||||||||||||||||
VLCC
|
||||||||||||||||||||||||
Average TCE Rate
|
$
|
26,657
|
$
|
42,389
|
$
|
46,983
|
$
|
40,127
|
||||||||||||||||
Number of Revenue Days
|
648
|
90
|
738
|
443
|
271
|
714
|
||||||||||||||||||
Aframax
|
||||||||||||||||||||||||
Average TCE Rate
|
$
|
12,962
|
$
|
—
|
$
|
23,488
|
$
|
—
|
||||||||||||||||
Number of Revenue Days
|
628
|
—
|
628
|
636
|
—
|
636
|
||||||||||||||||||
Panamax
|
||||||||||||||||||||||||
Average TCE Rate
|
$
|
12,266
|
$
|
17,914
|
$
|
20,123
|
$
|
21,134
|
||||||||||||||||
Number of Revenue Days
|
299
|
167
|
466
|
406
|
263
|
669
|
||||||||||||||||||
Total Crude Tankers Revenue Days
|
1,575
|
348
|
1,923
|
1,485
|
625
|
2,110
|
||||||||||||||||||
Product Carriers
|
||||||||||||||||||||||||
LR2
|
||||||||||||||||||||||||
Average TCE Rate
|
$
|
10,149
|
$
|
—
|
$
|
21,740
|
$
|
—
|
||||||||||||||||
Number of Revenue Days
|
91
|
—
|
91
|
91
|
—
|
91
|
||||||||||||||||||
LR1
|
||||||||||||||||||||||||
Average TCE Rate
|
$
|
10,889
|
$
|
16,239
|
$
|
21,058
|
$
|
21,320
|
||||||||||||||||
Number of Revenue Days
|
107
|
247
|
354
|
86
|
257
|
343
|
||||||||||||||||||
MR
|
||||||||||||||||||||||||
Average TCE Rate
|
$
|
10,697
|
$
|
5,294
|
$
|
14,692
|
$
|
11,528
|
||||||||||||||||
Number of Revenue Days
|
1,682
|
91
|
1,773
|
1,630
|
182
|
1,812
|
||||||||||||||||||
Total Product Carriers Revenue Days
|
1,880
|
338
|
2,218
|
1,807
|
439
|
2,246
|
||||||||||||||||||
TOTAL REVENUE DAYS
|
3,455
|
686
|
4,141
|
3,292
|
1,064
|
4,356
|
Vessels Owned
|
Vessels Chartered-in
|
Total at June 30, 2017
|
||||||||||||||||||||||||||
Vessel Type
|
Number
|
Weighted by
Ownership |
Number
|
Weighted by
Ownership |
Total Vessels
|
Vessels
Weighted by Ownership |
Total Dwt
|
|||||||||||||||||||||
Operating Fleet
|
||||||||||||||||||||||||||||
FSO
|
2
|
1.0
|
—
|
—
|
2
|
1.0
|
873,916
|
|||||||||||||||||||||
VLCC and ULCC
|
9
|
9.0
|
—
|
—
|
9
|
9.0
|
2,875,775
|
|||||||||||||||||||||
Aframax
|
7
|
7.0
|
—
|
—
|
7
|
7.0
|
787,859
|
|||||||||||||||||||||
Panamax
|
8
|
8.0
|
—
|
—
|
8
|
8.0
|
555,504
|
|||||||||||||||||||||
Crude Tankers
|
26
|
25.0
|
—
|
—
|
26
|
25.0
|
5,093,054
|
|||||||||||||||||||||
LR2
|
1
|
1.0
|
—
|
—
|
1
|
1.0
|
109,999
|
|||||||||||||||||||||
LR1
|
4
|
4.0
|
—
|
—
|
4
|
4.0
|
297,710
|
|||||||||||||||||||||
MR
|
13
|
13.0
|
7
|
7.0
|
20
|
20.0
|
955,968
|
|||||||||||||||||||||
Product Carriers
|
18
|
18.0
|
7
|
7.0
|
25
|
25.0
|
1,363,677
|
|||||||||||||||||||||
Total Crude Tanker & Product Carrier Operating Fleet
|
44
|
43.0
|
7
|
7.0
|
51
|
50.0
|
6,456,731
|
|||||||||||||||||||||
LNG Fleet
|
4
|
2.0
|
—
|
—
|
4
|
2.0
|
864,800 cbm
|
|||||||||||||||||||||
Total Operating Fleet
|
48
|
45.0
|
7
|
7.0
|
55
|
52.0
|
6,456,731
and 864,800 cbm |
|||||||||||||||||||||
Newbuild Fleet
|
||||||||||||||||||||||||||||
Suezmax
|
2
|
2.0
|
-
|
-
|
2
|
2.0
|
318,000
|
|||||||||||||||||||||
Total Operating and Newbuild Fleet
|
50
|
47.0
|
7
|
7.0
|
57
|
54.0
|
6,774,731
and 864,800 cbm |
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
($ in thousands)
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
TCE revenues
|
$
|
69,280
|
$
|
100,955
|
$
|
153,412
|
$
|
225,664
|
||||||||
Add: Voyage Expenses
|
2,677
|
2,107
|
7,295
|
6,074
|
||||||||||||
Shipping revenues
|
$
|
71,957
|
$
|
103,062
|
$
|
160,707
|
$
|
231,738
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
($ in thousands)
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
Net (loss)/Income
|
$
|
(11,619
|
)
|
$
|
30,506
|
$
|
6,448
|
$
|
90,396
|
|||||||
Income tax provision
|
4
|
173
|
8
|
177
|
||||||||||||
Interest expense
|
9,076
|
9,690
|
18,041
|
20,432
|
||||||||||||
Depreciation and amortization
|
19,099
|
20,025
|
37,715
|
40,106
|
||||||||||||
EBITDA
|
16,560
|
60,394
|
62,212
|
151,111
|
||||||||||||
Third-party debt modification fees and costs associated with repurchase of debt
|
7,939
|
-
|
7,939
|
140
|
||||||||||||
Separation and transition costs
|
296
|
1,130
|
1,031
|
1,263
|
||||||||||||
Gain on disposal of vessels and other property
|
-
|
-
|
-
|
(171
|
)
|
|||||||||||
Write-off of deferred financing costs
|
7,020
|
291
|
7,020
|
2,729
|
||||||||||||
Discount on repurchase of debt
|
-
|
-
|
-
|
(3,755
|
)
|
|||||||||||
Reorganization items, net
|
-
|
520
|
-
|
(3,951
|
)
|
|||||||||||
Adjusted EBITDA
|
$
|
31,815
|
$
|
62,335
|
$
|
78,202
|
$
|
147,366
|
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