EX-99.1 2 tv500387_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

INTERNATIONAL SEAWAYS REPORTS

SECOND QUARTER 2018 RESULTS

 

New York, NY – August 8, 2018 – International Seaways, Inc. (NYSE: INSW) (the “Company” or “INSW”), one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets, today reported results for the second quarter 2018.

 

Highlights

·Net loss for the second quarter was $18.8 million, or $0.65 per share, compared to net loss of $11.6 million, or $0.40 per share, in the second quarter of 2017. The net loss for the second quarter of 2018 includes a $6.7 million gain from the sale of vessels, net of impairments and $4.9 million of charges related to an amendment of the Company’s existing credit facility. Net loss for the second quarter of 2018 excluding these items was $20.6 million, or $0.71 per share.
·Time charter equivalent (TCE) revenues(A) for the second quarter were $50.0 million, compared to $69.3 million in the second quarter of 2017.
·Adjusted EBITDA(B) for the second quarter was $9.2 million, compared to $32.0 million in the same period of 2017.
·Cash(C) was $142.9 million as of June 30, 2018; total liquidity was $192.9 million, including $50.0 million undrawn revolver.
·Completed acquisition of six 300,000 DWT VLCCs for $434 million from Euronav NV, inclusive of assumed debt.
·The Company’s FSO joint ventures closed on a credit facility in April 2018; International Seaways received $110 million in proceeds from the drawdown of the facility.
·Sold and delivered four older vessels (a 2000-built VLCC, a 2001-built Aframax, a 2004-built MR and a 2003-built ULCC) to buyers during the quarter.

 

“During a challenging tanker environment, we took steps to enhance our earnings power ahead of a market recovery, while increasing our cash position to $143 million, said Lois K. Zabrocky, International Seaways’ president and CEO. We completed the acquisition of six highly efficient VLCCs, enabling the Company to significantly enhance its fleet size and age profile. We are pleased to have grown and renewed our fleet during a low point in the cycle without diluting shareholders and in a manner that maintains International Seaways’ overall balance sheet strength.”

 

Ms. Zabrocky continued, “Based on our lean and scalable model with predictable cash flows from our joint ventures and contracted fixed rate charters, we remain in a strong position to effectively operate through the current tanker cycle. Our success increasing our fleet’s DWT by 22% combined with our significant spot market exposure also bodes well for International Seaways to capitalize on future improvements to the product and crude tanker markets.”

 

Completion of VLCC Acquisition

On June 14, the Company completed its previously announced acquisition of six 300,000 DWT VLCCs for a purchase price of $434 million, inclusive of assumed debt, from Euronav NV. The six consist of five 2016-built VLCCs and one 2015-built VLCC, each constructed at Shanghai Waigaoqiao Shipbuilding Co. International Seaways financed the acquisition with the assumption of $311 million of the amended and restated debt secured by the six vessels under a China Export & Credit Insurance Corporation facility funded by The Export-Import Bank of China, Bank of China (New York Branch) and Citibank, N.A. In connection with this transaction and in order to finance portions of the consideration in connection therewith, and for other general corporate purposes, as applicable, the Company completed the following transactions during the six months ended June 30, 2018:

 

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(i)Sale of six of its vessels comprising one VLCC tanker, one Aframax tanker, and four MR tankers (one of which the Company agreed to sell in 2017);
(ii)Entry into sale-leaseback transactions yielding approximately $39.3 million in net proceeds in respect of two Aframax tankers in the first quarter of 2018;
(iii)Refinancing of its FSO Joint Venture – on March 29, 2018, the FSO Joint Venture entered into a $220 million Senior Secured Credit Facility. The FSO Joint Venture drew down the facility in full on April 26, 2018 and distributed $110 million of the loan proceeds to the Company;
(iv)Sale of $25 million of 8.50% notes due 2023 in an SEC-registered offering in May 2018;
(v)Sale of $30 million of 10.75% subordinated step-up notes due 2023 in a private placement to certain funds and accounts managed by BlackRock, Inc. on June 13, 2018;
(vi)Entry into a credit agreement, secured by the Seaways Raffles, a 2010-built VLCC tanker, with ABN AMRO Capital USA LLC as lead arranger and facility agent, and the related drawdown of $28.5 million thereunder on June 12, 2018;
(vii)Entry into a second amendment of its Credit Agreement dated as of June 22, 2017;
(viii)The assumption of outstanding debt under the Sinosure Credit Facility with effect as of June 14, 2018; and
(ix)Sale of the Seaways Laura Lynn, to Euronav in late June 2018 for approximately $32.3 million in net proceeds.

 

 

Second Quarter 2018 Results

Net loss for the second quarter was $18.8 million, or $0.65 per share, compared to the net loss of $11.6 million, or $0.40 per share, in the second quarter of 2017. The net loss in the second quarter of 2018 reflects a decline of $19.3 million in TCE revenues compared with the second quarter of 2017, higher interest expense of $3.8 million and a reduction in equity in income of affiliated companies of $5.0 million. These negative factors were partially offset to a large degree by a net gain on vessel disposals during the period of $6.7 million, as well as decreases in expenses associated with changes to the Company’s debt facilities aggregating $10.1 million and decreases in vessel expenses of $3.8 million and depreciation and amortization of $2.3 million. Net loss for the first half of 2018 was $48.1 million, or $1.65 per share, compared to $6.4 million, or $0.22 per share, for the first half of 2017.

 

Consolidated TCE revenues for the second quarter of 2018 were $50.0 million, compared to $69.3 million in the second quarter of 2017. Shipping revenues for the second quarter of 2018 were $56.9 million, compared to $72.0 million in the second quarter of 2017. Consolidated TCE revenues for the first half of 2018 were $98.8 million, compared to $153.4 million for the first half of last year. Shipping revenues for the first half of 2018 were $108.9 million compared to $160.7 million in the prior year period. The decline in TCE revenues reflects in part the effect of positioning vessels for sale as part of our fleet renewal strategy.

 

The reduction in equity in income of affiliated companies was principally attributable to decreases in earnings from the two FSO joint ventures as charter rates in the five-year service contracts that commenced in the third quarter of 2017 are lower than the charter rates included in the service contracts under which the FSO joint ventures operated during the second quarter of 2017. In addition, interest expense for the two FSO joint ventures increased in the second quarter of 2018 compared to the second quarter of 2017 as a result of drawdowns on debt facilities aggregating $220 million during April 2018.

 

The increase in interest expense was primarily attributable to the higher average outstanding principal balances under the Company’s 2017 Credit Agreement than under the 2014 facility that it replaced late in the second quarter of 2017 and higher related interest rates.

 

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Adjusted EBITDA was $9.2 million for the quarter, compared to $32.0 million in the second quarter of 2017. Adjusted EBITDA was $15.7 million for the first half of 2018, compared to $78.6 million for the first half of 2017.

 

Crude Tankers

TCE revenues for the Crude Tankers segment were $34.4 million for the quarter, compared to $45.7 million in the second quarter of 2017. This decrease resulted primarily from the impact of lower average blended rates in the VLCC and Aframax sectors, aggregating approximately $15.4million. VLCC and Aframax spot rates declined to approximately $12,200 and $11,100 per day, respectively. Approximately $6.1 million of the reduction in TCE revenues represents the impact of the Company’s only ULCC being idle for the entirety of the current quarter and a 2000-built VLCC being held-for-sale as of the end of January 2018 through its sale in April 2018. There was a larger disparity in the spot market rates earned by the Company’s modern and non-modern VLCCs in the current period versus in the second quarter of 2017. VLCCs aged 15 years or less earned an average daily rate of $15,407 per day compared to the overall VLCC rate of $12,242 in the current period, while in the prior year’s period the VLCCs under 15 years of age earned an average daily rate of $27,496 per day compared to the overall VLCC rate of $26,657 per day. The decline in TCE revenues also reflects a $1.0 million decrease in revenue in the Crude Tankers Lightering business during the current quarter. These declines were partially offset by the impact of 540 additional revenue days, reflecting the two Suezmaxes and one VLCC that were acquired in the second half of 2017 and six VLCCs that were acquired in June 2018, aggregating $8.8 million. Shipping revenues for the Crude Tankers segment were $41.2 million for the quarter, compared to $47.9 million in the second quarter of 2017. TCE revenues for the Crude Tankers segment were $63.6 million for the first half of 2018, compared to $101.8 million for the first half of 2017. Shipping revenues for the Crude Tankers segment were $73.5 million for the first half of 2018, compared to $107.8 million in the first half of 2017.

 

Product Carriers

TCE revenues for the Product Carriers segment were $15.6 million for the quarter, compared to $23.5 million in the second quarter of 2017. This decrease was primarily due to a decline in average daily blended rates earned by the MR fleet, with spot rates declining to approximately $8,600 per day, accounting for $2.3 million of the decline in TCE revenues. Additionally, the impact of 639 fewer MR revenue days due to the sales of five MRs between August 2017 and April 2018 and the redelivery of three MRs to their owners between December 2017 and June 2018 at the expiry of their respective bareboat charters accounted for $6.3 million of the lower TCE revenues. These declines were partially offset by increased daily rates earned by the LR1 and LR2 fleets. Shipping revenues for the Product Carriers segment were $15.8 million for the quarter, compared to $24.0 million in the second quarter of 2017. TCE revenues for the Product Carriers segment were $35.2 million for the first half of 2018, compared to $51.6 million for the first half of 2017. Shipping revenues for the Product Carriers segment were $35.4 million for the first half of 2018, compared to $52.9 million for the first half of 2017.

 

Vessel Sales

During the quarter, the Company delivered a 2000-built VLCC, which was classified as held for sale at March 31, to its buyer in April. The Company also agreed to sell a 2001-built Aframax, a 2004-built MR and a 2003-built ULCC, which delivered to their buyers in April, May and June, respectively. Net proceeds received from the ships delivered to buyers in the second quarter totaled $69.1 million.

 

Conference Call

The Company will host a conference call to discuss its first quarter 2018 results at 9:00 a.m. Eastern Time (“ET”) on Wednesday, August 8, 2018.

 

To access the call, participants should dial (855) 940-9471 for domestic callers and (412) 317-5211 for international callers. Please dial in ten minutes prior to the start of the call.

 

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A live webcast of the conference call will be available from the Investor Relations section of the Company’s website at http://www.intlseas.com.

 

An audio replay of the conference call will be available starting at 12:00 p.m. ET on Wednesday, August 8, 2018 through 11:59 p.m. ET on Wednesday, August 15, 2018 by dialing (877) 344-7529 for domestic callers and (412) 317-0088 for international callers, and entering Access Code 10122824.

 

About International Seaways, Inc.

International Seaways, Inc. (NYSE:INSW) is one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets. International Seaways owned and operated a fleet of 53 vessels as of June 30, 2018, including fourteen VLCCs, two Suezmaxes, seven Aframaxes/LR2s, 12 Panamaxes/LR1s and 12 MR tankers. Through joint ventures, it has ownership interests in four liquefied natural gas carriers and two floating storage and offloading service vessels. International Seaways has an experienced team committed to the very best operating practices and the highest levels of customer service and operational efficiency. International Seaways is headquartered in New York City, NY. Additional information is available at www.intlseas.com.

 

Forward-Looking Statements

This release contains forward-looking statements. In addition, the Company may make or approve certain statements in future filings with the Securities and Exchange Commission (SEC), in press releases, or in oral or written presentations by representatives of the Company. All statements other than statements of historical facts should be considered forward-looking statements. These matters or statements may relate to the Company’s plans to issue dividends, its prospects, including statements regarding vessel acquisitions, trends in the tanker markets, and possibilities of strategic alliances and investments. Forward-looking statements are based on the Company’s current plans, estimates and projections, and are subject to change based on a number of factors. Investors should carefully consider the risk factors outlined in more detail in the Annual Report on Form 10-K for 2017 for the Company, and in similar sections of other filings made by the Company with the SEC from time to time. The Company assumes no obligation to update or revise any forward-looking statements. Forward-looking statements and written and oral forward-looking statements attributable to the Company or its representatives after the date of this release are qualified in their entirety by the cautionary statements contained in this paragraph and in other reports previously or hereafter filed by the Company with the SEC.

 

Investor Relations & Media Contact:

David Siever, International Seaways, Inc.

(212) 578-1635

dsiever@intlseas.com

  

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Consolidated Statements of Operations

  

($ in thousands, except per share amounts)                
   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
   2018   2017   2018   2017 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
Shipping Revenues:                    
Pool revenues  $33,601   $42,339   $69,115   $92,112 
Time and bareboat charter revenues   6,608    14,442    14,521    31,792 
Voyage charter revenues   16,700    15,176    25,251    36,803 
Total Shipping Revenues   56,909    71,957    108,887    160,707 
                     
Operating Expenses:                    
Voyage expenses   6,897    2,677    10,074    7,295 
Vessel expenses   31,528    35,373    68,186    69,101 
Charter hire expenses   10,723    11,036    19,346    22,387 
Depreciation and amortization   16,804    19,099    34,428    37,715 
General and administrative   6,064    5,096    12,093    11,370 
Third-party debt modification fees   1,302    7,939    1,302    7,939 
Separation and transition costs   -    296    -    1,031 
Gain on disposal of vessels and other property,                    
 net of impairments   (6,740)   -    (167)   - 
Total operating expenses   66,578    81,516    145,262    156,838 
(Loss)/income from vessel operations   (9,669)   (9,559)   (36,375)   3,869 
Equity in income of affiliated companies   8,822    13,866    17,162    27,472 
Operating (loss)/income   (847)   4,307    (19,213)   31,341 
Other expense   (4,863)   (6,644)   (4,184)   (6,440)
(Loss)/income before interest expense and income taxes   (5,710)   (2,337)   (23,397)   24,901 
Interest expense   (13,086)   (9,278)   (24,707)   (18,445)
(Loss)/income before income taxes   (18,796)   (11,615)   (48,104)   6,456 
Income tax provision   -    (4)   (8)   (8)
Net (loss)/income  $(18,796)  $(11,619)  $(48,112)  $6,448 
                     
Weighted Average Number of Common Shares Outstanding:                    
Basic   29,130,230    29,194,240    29,118,271    29,187,286 
Diluted   29,130,230    29,194,240    29,118,271    29,221,779 
                     
Per Share Amounts:                    
Basic and diluted net (loss)/income per share  $(0.65)  $(0.40)  $(1.65)  $0.22 

 

The Company adopted ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASC 715), which requires that an employer classify and report the service cost component in the same line item or items in the statement of operations as other compensation costs arising from services rendered by the pertinent employees during the period and disclose by line item in the statement of operations the amount of net benefit cost that is included in the statement of operations. The other components of net benefit cost would be presented in the statement of operations separately from the service cost component and outside the subtotal of income from operations. The Company adopted this accounting standard on January 1, 2018 and has applied the guidance retrospectively.

 

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Consolidated Balance Sheets

 

($ in thousands)        
   June 30,   December 31, 
   2018   2017 
   (Unaudited)   (Unaudited) 
ASSETS          
Current Assets:          
Cash and cash equivalents  $115,843   $60,027 
Voyage receivables   62,408    58,187 
Other receivables   10,391    4,411 
Inventories   4,828    3,270 
Prepaid expenses and other current assets   8,573    5,881 
Current portion of derivative asset   1,738    16 
Total Current Assets   203,781    131,792 
           
Restricted Cash   27,010    10,579 
Vessels and other property, less accumulated depreciation   1,405,577    1,104,727 
Vessel held for sale, net   -    5,108 
Deferred drydock expenditures, net   21,810    30,528 
Total Vessels, Deferred Drydock and Other Property   1,427,387    1,140,363 
Investments in and advances to affiliated companies   275,034    378,894 
Long-term derivative asset   7,875    886 
Other assets   5,393    1,970 
Total Assets  $1,946,480   $1,664,484 
           
LIABILITIES AND EQUITY          
Current Liabilities:          
Accounts payable, accrued expenses and other current liabilities  $32,967   $22,805 
Payable to OSG   34    367 
Payable associated with acquisition of vessels   20,954    - 
Current installments of long-term debt   48,492    24,063 
Total Current Liabilities   102,447    47,235 
Long-term debt   789,537    528,874 
Other liabilities   3,955    2,721 
Total Liabilities   895,939    578,830 
           
Equity:          
Total Equity   1,050,541    1,085,654 
Total Liabilities and Equity  $1,946,480   $1,664,484 

 

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Consolidated Statements of Cash Flows

 

($ in thousands)        
   Six Months Ended 
   June 30, 
   2018   2017 
   (Unaudited)   (Unaudited) 
Cash Flows from Operating Activities:          
Net (loss)/income  $(48,112)  $6,448 
Items included in net (loss)/income not affecting cash flows:          
Depreciation and amortization   34,428    37,715 
Loss on write-down of vessels   948    - 
Amortization of debt discount and other deferred financing costs   2,651    3,930 
Deferred financing costs write-off   2,273    7,020 
Stock compensation, non-cash   1,525    1,733 
Earnings of affiliated companies   (17,548)   (27,243)
Other – net   233    130 
Items included in net (loss)/income related to investing and financing activities:          
Gain on disposal of vessels and other property, net   (1,115)   - 
Loss on extinguishment of debt   1,295    - 
Cash distributions from affiliated companies   35,863    10,103 
Payments for drydocking   (2,701)   (15,860)
Insurance claims proceeds related to vessel operations   3,528    5 
Changes in operating assets and liabilities   (3,145)   (10,187)
Net cash provided by operating activities   10,123    13,794 
Cash Flows from Investing Activities:          
Expenditures for vessels and vessel improvements   (128,925)   (18,583)
Proceeds from disposal of vessels and other property   126,504    - 
Expenditures for other property   (320)   (374)
Investments in and advances to affiliated companies   1,966    (104)
Repayments of advances from joint venture investees   93,142    8,397 
Net cash provided by/(used in) investing activities   92,367    (10,664)
Cash Flows from Financing Activities:          
Issuance of debt, net of issuance and deferred financing costs   72,924    486,302 
Extinguishment of debt   (60,000)   (458,416)
Payments on debt   (42,770)   (1,546)
Cash paid to tax authority upon vesting of stock-based compensation   (397)   (241)
   Net cash (used in)/provided by financing activities   (30,243)   26,099 
Net increase in cash, cash equivalents and restricted cash   72,247    29,229 
Cash, cash equivalents and restricted cash at beginning of year   70,606    92,001 
Cash, cash equivalents and restricted cash at end of period  $142,853   $121,230 

 

The Company adopted ASU No. 2016-18, Statement of Cash Flows (ASC 230), Restricted Cash, which requires that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The standard is effective for annual periods beginning after December 31, 2017 and interim periods within that reporting period. The Company adopted this accounting standard on January 1, 2018. The adoption of this accounting standard resulted in the inclusion of restricted cash by $10,579 from December 31, 2017 in the beginning-of-period amount shown on the statement of cash flows for the six months ended June 30, 2018.

 

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Spot and Fixed TCE Rates Achieved and Revenue Days

 

The following tables provides a breakdown of TCE rates achieved for spot and fixed charters and the related revenue days for the three months ended June 30, 2018 and the comparable period of 2017. Revenue days in the quarter ended June 30, 2018 totaled 3,833 compared with 4,141 in the prior year quarter. A summary fleet list by vessel class can be found later in this press release.

  

   Three Months Ended June 30, 2018   Three Months Ended June 30, 2017 
   Spot   Fixed   Total   Spot   Fixed   Total 
Crude Tankers                              
ULCC                              
Average TCE Rate  $-   $-        $-   $32,176      
Number of Revenue Days   4    -    4    -    91    91 
VLCC                              
Average TCE Rate  $12,242   $9,660        $26,657   $42,389      
Number of Revenue Days   813    9    822    648    90    738 
Suezmax                              
Average TCE Rate  $13,070   $-        $-   $-      
Number of Revenue Days   182    -    182    -    -    - 
Aframax                              
Average TCE Rate  $11,061   $-        $12,962   $-      
Number of Revenue Days   526    -    526    628    -    628 
Panamax                              
Average TCE Rate  $14,861   $11,323        $12,266   $17,914      
Number of Revenue Days   182    528    710    299    167    466 
Total Crude Tankers Revenue Days   1,707    537    2,244    1,575    348    1,923 
Product Carriers                              
LR2                              
Average TCE Rate  $12,585   $-        $10,149   $-      
Number of Revenue Days   91    -    91    91    -    91 
LR1                              
Average TCE Rate  $16,001   $-        $10,889   $16,239      
Number of Revenue Days   364    -    364    107    247    354 
MR                              
Average TCE Rate  $8,613   $5,294        $10,697   $5,294      
Number of Revenue Days   1,043    91    1,134    1,682    91    1,773 
Total Product Carriers Revenue Days   1,498    91    1,589    1,880    338    2,218 
Total Revenue Days   3,205    628    3,833    3,455    686    4,141 

 

Revenue days in the above table exclude days related to full service lighterings and days for which recoveries were recorded under the Company’s loss of hire insurance policies.

 

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Fleet Information

 

As of June 30, 2018, INSW’s owned and operated 53 vessels, 41 of which were owned, 6 of which were chartered in, and 6 were held through joint venture partnerships (2 FSO and 4 LNG vessels)

 

   Vessels Owned   Vessels Chartered-in   Total at June 30, 2018 
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    864,046 
VLCC and ULCC   14    14.0    -    -    14    14.0    4,248,751 
Suezmax   2    2.0    -    -    2    2.0    316,864 
Aframax   4    4.0    2    2.0    6    6.0    674,999 
Panamax   8    8.0    -    -    8    8.0    555,504 
Crude Tankers   30    29.0    2    2.0    32    31.0    6,660,164 
                                    
LR2   1    1.00    -    -    1    1.0    109,999 
LR1   4    4.00    -    -    4    4.0    297,710 
MR   8    8.00    4    4.0    12    12.0    591,910 
Product Carriers   13    13.00    4    4.0    17    17.0    999,619 
                                    
Total Crude Tanker & Product Carrier Operating Fleet   43    42.0    6    6.0    49    48.0    7,659,783 
                                    
LNG Fleet   4    2.0    -    -    4    2.0    864,800 cbm 
                                  7,659,783 
                                  and 
Total Operating Fleet   47    44.0    6    6.0    53    50.0    864,800 cbm 

 

Reconciliation to Non-GAAP Financial Information

 

The Company believes that, in addition to conventional measures prepared in accordance with GAAP, the following non-GAAP measures may provide certain investors with additional information that will better enable them to evaluate the Company’s performance. Accordingly, these non-GAAP measures are intended to provide supplemental information, and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP.

 

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(A) Time Charter Equivalent (TCE) Revenues

 

Consistent with general practice in the shipping industry, the Company uses TCE revenues, which represents shipping revenues less voyage expenses, as a measure to compare revenue generated from a voyage charter to revenue generated from a time charter. Time charter equivalent revenues, a non-GAAP measure, provides additional meaningful information in conjunction with shipping revenues, the most directly comparable GAAP measure, because it assists Company management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. Reconciliation of TCE revenues of the segments to shipping revenues as reported in the consolidated statements of operations follow:

  

   Three Months Ended June 30,   Six Months Ended June 30, 
($ in thousands)  2018   2017   2018   2017 
TCE revenues  $50,012   $69,280   $98,813   $153,412 
Add: Voyage expenses   6,897    2,677    10,074    7,295 
Shipping revenues  $56,909   $71,957   $108,887   $160,707 

 

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(B) EBITDA and Adjusted EBITDA

 

EBITDA represents net(loss)/income before interest expense, income taxes and depreciation and amortization expense. Adjusted EBITDA consists of EBITDA adjusted for the impact of certain items that we do not consider indicative of our ongoing operating performance. EBITDA and Adjusted EBITDA do not represent, and should not be a substitute for, net income or cash flows from operations as determined in accordance with GAAP. Some of the limitations are: (i) EBITDA and Adjusted EBITDA do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments; (ii) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs; and (iii) EBITDA and Adjusted EBITDA do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debt. While EBITDA and Adjusted EBITDA are frequently used as a measure of operating results and performance, neither of them is necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. The following table reconciles net (loss)/income as reflected in the consolidated statements of operations, to EBITDA and Adjusted EBITDA:

  

   Three Months Ended June 30,   Six Months Ended June 30, 
($ in thousands)  2018   2017   2018   2017 
Net (loss)/Income  $(18,796)  $(11,619)  $(48,112)  $6,448 
Income tax provision   -    4    8    8 
Interest expense   13,086    9,278    24,707    18,445 
Depreciation and amortization   16,804    19,099    34,428    37,715 
EBITDA   11,094    16,762    11,031    62,616 
Third-party debt modification fees and costs associated with repurchase of debt   1,302    7,939    1,302    7,939 
Separation and transition costs   -    296    -    1,031 
Gain on disposal of vessels and other property, net of impairments   (6,740)   -    (167)   - 
Write-off of deferred financing costs   2,273    7,020    2,273    7,020 
Loss on extinguishment of debt   1,295    -    1,295    - 
Adjusted EBITDA  $9,224   $32,017   $15,734   $78,606 

 

 

 

(C) Total Cash

($ in thousands) 

June 30, 

2018 

  

December 31, 

2017 

 
         
Cash and cash equivalents  $115,843   $60,027 
Restricted cash   27,010    10,579 
Total Cash  $142,853   $70,606 

 

 

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