Press Release

International Seaways Reports First Quarter 2022 Results

Company Release - 5/4/2022 6:45 AM ET

NEW YORK--(BUSINESS WIRE)-- 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, today reported results for the first quarter of 2022.

HIGHLIGHTS & RECENT DEVELOPMENTS

  • Fleet Optimization Program:
    • Purchased the Seaways Eagle, a 2011-built LR1, for effectively $3 million and the sale of a 2010-built MR. The Seaways Eagle was delivered into our niche joint venture, Panamax International (“PI”), which historically outperforms the market. The LR1 vessel was swapped with the MR into a senior debt facility with no further mandatory repayment.
    • Paid final installment on our contribution toward three newbuild, dual-fuel, LNG-powered VLCCs that are due for delivery in the first quarter of 2023. The remaining contract payments are to be funded by affiliates of the Bank of Communications Limited (“BoComm”) under our financing agreement. The vessels will be employed on long term time charter contracts with Shell after delivery.
    • In April 2022, the Company agreed to sell all four of its remaining Handysize vessels, built in 2006, which are expected to generate net proceeds, after debt repayment, of approximately $24 million in aggregate. One of the four vessels has already been delivered to the buyers in April 2022 with the remaining three expected to be delivered during the second quarter. The Company also agreed to sell a 2008-built MR, resulting in net proceeds of approximately $10 million and savings on upcoming third special survey and ballast water treatment costs estimated at approximately $3 million.
    • Recycled two Panamax vessels with an average age of 19 years during April 2022 to capitalize on historically high recycle values. Net proceeds from the unencumbered vessels were about $16 million. All recycling was conducted in accordance with the Hong Kong Convention.
  • Returns to Shareholders:
    • Paid a regular quarterly cash dividend of $0.06 per share in March 2022 for the ninth consecutive quarter
    • A cumulative $97.4 million has been returned to shareholders since the start of 2020 through approximately $19.2 million in regular, quarterly cash dividends, a special dividend of $31.5 million in connection with the Diamond S merger and approximately $46.7 million in shares repurchased and subsequently retired.
  • Balance Sheet Enhancements:
    • Refinanced one MR through sale and leaseback arrangements with Japanese leasing companies for net proceeds of approximately $6 million.
    • In the second quarter, the Company agreed to refinance one additional MR on a sale and leaseback arrangement with a Japanese leasing company and expected net proceeds of approximately $5 million.
  • Adjusted EBITDA(A) for first quarter was approximately $26.0 million.
  • Cash(B) was $75.6 million as of March 31, 2022; total liquidity was $165.6 million, including $90.0 million of undrawn revolver capacity.
  • Net loss for the first quarter was $13.0 million, or $0.26 per diluted share, compared to a net loss of $13.4 million, or $0.48 per diluted share, in the first quarter of 2021. Net loss for the quarter reflects the impact of one-time items, including the gain on disposal of vessels, net of impairments and debt modification expenses aggregating $1.4 million. Net loss excluding these items was $14.1 million, or $0.28 per diluted share.

“Following a year of significant growth, we continued to advance strategic objectives in the first quarter, further solidifying our balance sheet and optimizing our fleet by selling older tonnage in a rising price environment,” said Lois K. Zabrocky, International Seaways’ President and CEO. “With both near-term catalysts driving tanker rates higher and longer-term positive market fundamentals fully intact based on historically low inventories, growing oil demand that is anticipated to return to pre-pandemic levels, and expectations of increased oil production in the second half of the year, we remain optimistic that our expanded scale, capabilities, and substantial operating leverage will serve us well as the rate environment improves.”

Ms. Zabrocky added, “We have further strengthened Seaways’ industry position ahead of a market rebound and believe we are ideally positioned with our sizable, diversified fleet of crude and product tankers. Our financial strength has been bolstered by the success of our ongoing fleet optimization program and financing activities that have unlocked value for shareholders.”

Jeff Pribor, the Company’s CFO stated, “We continue to advance initiatives that support a diversified capital structure and financial flexibility for the benefit of shareholders. Returning capital is a top priority, as evidenced by the nearly $100 million we have returned since the start of 2020, including our regular quarterly dividend in the first quarter. Going forward, we expect to pursue additional opportunities to strengthen our financial position and further implement our disciplined and accretive capital allocation strategy.”

FIRST QUARTER 2022 RESULTS

Net loss for the first quarter of 2022 was $13.0 million, or $0.26 per diluted share, compared to a net loss of $13.4 million, or $0.48 per diluted share, for the first quarter of 2021. The results in the first quarter of 2022 reflected a significant increase in revenue days as a result of the merger that were mostly offset by higher operating expenses (vessel expenses, depreciation and amortization, general and administrative expenses) and interest expense, reflecting the debt assumed in the merger that closed in the third quarter of 2021.

Consolidated TCE revenues(C) for the first quarter were $98.0 million, compared to $45.2 million for the first quarter of 2021. This increase in TCE revenue reflects an increase of approximately 3,800 revenue days of the significantly larger post-merger fleet. Shipping revenues for the first quarter were $101.5 million, compared to $46.8 million for the first quarter of 2021.

Adjusted EBITDA(A) for the first quarter was $26.0 million, compared to $10.7 million for the first quarter of 2021.

Crude Tankers

TCE revenues for the Crude Tankers segment were $36.5 million for the first quarter, compared to $35.9 million for the first quarter of 2021. This increase was primarily attributable to an increase of approximately 400 revenue days as a result of changes fleet composition from the merger and our fleet optimization program. Shipping revenues for the Crude Tankers segment were $39.6 million for the first quarter of 2022, compared to $37.5 million for the first quarter of 2021.

Product Carriers

TCE revenues for the Product Carriers segment were $61.5 million for the first quarter, compared to $9.2 million for the first quarter of 2021. This increase is attributable to an increase of over 3,400 revenue days as a result of the merger and higher average rates earned by the LR1 and MR fleets, with average spot rates increasing to approximately $20,300 and $14,000 per day, respectively. Shipping revenues for the Product Carriers segment were $61.9 million for the first quarter, compared to $9.2 million for the first quarter of 2021.

BALANCE SHEET ENHANCEMENTS

The Company executed a number of liquidity enhancing and financial diversification initiatives during the first four months of 2022:

  • In January 2022, we entered into a nine-year lease financing arrangement with Hyuga Kaiun Co., Ltd. for the sale and leaseback of a 2011-built MR that was previously encumbered under the $390 Million Facility Term Loan. The transaction generated net proceeds of $5.7 million after making the mandatory prepayment of the $390 Million Facility Term Loan; and
  • In April 2022, we entered into an eight-year lease financing arrangement with Kaiyo Ltd. for the sale and leaseback of a 2010-built MR that was previously encumbered under the $390 Million Facility Term Loan. The transaction generated net proceeds of $5.4 million after making the mandatory prepayment of the $390 Million Facility Term Loan.

VESSEL SALES & RECYCLING

During the first quarter of 2022, the Company sold a 2010-built MR and purchased a 2011-built LR1 with the same counterparty. The transaction resulted in a net cost to the Company of approximately $3.0 million. The LR1 replaced the MR as collateral in the $525 million debt facility.

During 2022, the Company agreed to sell two Panamaxes, built between 2002 and 2004, delivered to the buyers in April 2022 for recycling compliant with the Hong Kong Convention. Proceeds of approximately $8.1 million on one of these vessels were received prior to the end of the first quarter.

In April 2022, the Company sold a 2006-built Handysize product carrier, which resulted in proceeds, net of debt repayment of $6.1 million. The remaining three 2006-built Handysize product carriers were agreed to be sold in the second quarter for net proceeds of approximately $17.8 million.

The Company also agreed to sell a 2008-built MR in the second quarter, which is expected to generate proceeds, net of debt repayment, of approximately $10.3 million.

CONFERENCE CALL

The Company will host a conference call to discuss its first quarter 2022 results at 8:30 a.m. Eastern Time (“ET”) on Wednesday, May 4, 2022. To access the call, participants should dial (833) 329-1696 for domestic callers and (639) 380-0031 for international callers and entering 8498434. Please dial in ten minutes prior to the start of the call. A live webcast of the conference call will be available from the Investor Relations section of the Company’s website at https://www.intlseas.com.

An audio replay of the conference call will be available until May 11, 2022 by dialing (800) 585-8367 for domestic callers and (416) 621-4642 for international callers, and entering Access Code 3876019.

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 owns and operates a fleet of 84 vessels, including 13 VLCCs (including three newbuildings), 13 Suezmaxes, five Aframaxes/LR2s, eight Panamaxes/LR1s, 40 MR tankers and three Handysize tankers. Through joint ventures, it has ownership interests in 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 https://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 U.S. 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 consequences of the Company’s merger with Diamond S and plans to issue dividends, its prospects, including statements regarding vessel acquisitions, expected synergies, 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 2021 for the Company, the Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, 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.

Category: Earnings

Consolidated Statements of Operations

($ in thousands, except per share amounts)

 

 

Three Months Ended

 

 

March 31,

 

 

2022

 

2021

 

 

(Unaudited)

 

(Unaudited)

Shipping Revenues:

 

 

 

 

 

 

Pool revenues

 

$

83,762

 

 

$

24,659

 

Time and bareboat charter revenues

 

 

6,175

 

 

 

14,698

 

Voyage charter revenues

 

 

11,545

 

 

 

7,399

 

Total Shipping Revenues

 

 

101,482

 

 

 

46,756

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

Voyage expenses

 

 

3,507

 

 

 

1,587

 

Vessel expenses

 

 

60,317

 

 

 

26,327

 

Charter hire expenses

 

 

7,309

 

 

 

5,741

 

Depreciation and amortization

 

 

27,000

 

 

 

16,754

 

General and administrative

 

 

10,166

 

 

 

8,181

 

Third-party debt modification fees

 

 

187

 

 

 

 

(Gain)/loss on disposal of vessels and other property, net of impairments

 

 

(1,376

)

 

 

11

 

Total operating expenses

 

 

107,110

 

 

 

58,601

 

Loss from vessel operations

 

 

(5,628

)

 

 

(11,845

)

Equity in income of affiliated companies

 

 

5,597

 

 

 

5,468

 

Operating loss

 

 

(31

)

 

 

(6,377

)

Other (expense)/income

 

 

(226

)

 

 

292

 

Loss before interest expense and income taxes

 

 

(257

)

 

 

(6,085

)

Interest expense

 

 

(12,740

)

 

 

(7,280

)

Loss before income taxes

 

 

(12,997

)

 

 

(13,365

)

Income tax provision

 

 

(4

)

 

 

 

Net loss attributable to the Company

$

(13,001

)

$

(13,365

)

 

 

 

 

 

 

 

Weighted Average Number of Common Shares Outstanding:

 

 

 

 

 

 

Basic and diluted

 

 

49,571,337

 

 

 

28,023,815

 

 

 

 

 

 

 

 

Per Share Amounts:

 

 

 

 

 

 

Basic and diluted net loss per share

 

$

(0.26

)

 

$

(0.48

)

Consolidated Balance Sheets

($ in thousands)

 

 

March 31,

 

December 31,

 

 

2022

 

2021

 

 

(Unaudited)

 

(Unaudited)

ASSETS

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

74,553

 

$

97,883

Voyage receivables

 

 

120,465

 

 

107,096

Other receivables

 

 

7,368

 

 

5,651

Inventories

 

 

2,335

 

 

2,110

Prepaid expenses and other current assets

 

 

16,558

 

 

11,759

Current portion of derivative asset

 

 

2,061

 

 

-

Vessels held for sale

 

 

23,148

 

 

-

Total Current Assets

 

 

246,488

 

 

224,499

 

 

 

 

 

 

 

Restricted cash

 

 

1,051

 

 

1,050

Vessels and other property, less accumulated depreciation

 

 

1,773,264

 

 

1,802,850

Vessels construction in progress

 

 

60,034

 

 

49,291

Deferred drydock expenditures, net

 

 

60,473

 

 

55,753

Operating lease right-of-use assets

 

 

23,425

 

 

23,168

Investments in and advances to affiliated companies

 

 

183,361

 

 

180,331

Long-term derivative asset

 

 

5,959

 

 

1,296

Time charter contracts acquired, net

 

 

502

 

 

842

Other assets

 

 

12,036

 

 

7,700

Total Assets

 

$

2,366,593

 

$

2,346,780

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable, accrued expenses and other current liabilities

 

$

56,116

 

$

44,964

Current portion of operating lease liabilities

 

 

10,767

 

 

8,393

Current installments of long-term debt

 

 

178,391

 

 

178,715

Current portion of derivative liability

 

 

-

 

 

2,539

Total Current Liabilities

 

 

245,274

 

 

234,611

Long-term operating lease liabilities

 

 

10,814

 

 

12,522

Long-term debt

 

 

943,032

 

 

926,270

Long-term derivative liability

 

 

-

 

 

757

Other liabilities

 

 

2,023

 

 

2,288

Total Liabilities

 

 

1,201,143

 

 

1,176,448

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

Total Equity

 

 

1,165,450

 

 

1,170,332

Total Liabilities and Equity

 

$

2,366,593

 

$

2,346,780

Consolidated Statements of Cash Flows

($ in thousands)

 

 

Three Months Ended March 31,

 

 

2022

 

2021

 

 

(Unaudited)

 

(Unaudited)

Cash Flows from Operating Activities:

 

 

 

 

 

 

Net loss

 

$

(13,001

)

 

$

(13,365

)

Items included in net loss not affecting cash flows:

 

 

 

 

 

 

Depreciation and amortization

 

 

27,000

 

 

 

16,754

 

Loss on write-down of vessels and other assets

 

 

1,697

 

 

 

 

Amortization of debt discount and other deferred financing costs

 

 

855

 

 

 

540

 

Amortization of time charter hire contracts acquired

 

 

340

 

 

 

 

Deferred financing costs write-off

 

 

133

 

 

 

 

Stock compensation

 

 

1,108

 

 

 

1,037

 

Earnings of affiliated companies

 

 

(5,597

)

 

 

(5,468

)

Write-off of registration statement costs

 

 

 

 

 

694

 

Other – net

 

 

580

 

 

 

425

 

Items included in net loss related to investing and financing activities:

 

 

 

 

 

 

(Gain)/loss on disposal of vessels and other assets, net

 

 

(3,073

)

 

 

11

 

Cash distributions from affiliated companies

 

 

2,250

 

 

 

2,825

 

Payments for drydocking

 

 

(17,570

)

 

 

(8,594

)

Insurance claims proceeds related to vessel operations

 

 

954

 

 

 

528

 

Changes in operating assets and liabilities

 

 

(15,457

)

 

 

(16,393

)

Net cash used in by operating activities

 

 

(19,781

)

 

 

(21,006

)

Cash Flows from Investing Activities:

 

 

 

 

 

 

Expenditures for vessels and vessel improvements

 

 

(37,989

)

 

 

(3,281

)

Proceeds from disposal of vessels and other property, net

 

 

24,257

 

 

 

(11

)

Expenditures for other property

 

 

(390

)

 

 

(179

)

Investments in and advances to affiliated companies, net

 

 

(527

)

 

 

54

 

Net cash provided by investing activities

 

 

(14,649

)

 

 

(3,417

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

Extinguishment of debt

 

 

(10,981

)

 

 

 

Payments on debt

 

 

(35,284

)

 

 

(15,371

)

Proceeds from sale and leaseback financing, net of issuance and deferred financing costs

 

 

20,401

 

 

 

 

Payments on sale and leaseback financing

 

 

(9,085

)

 

 

 

Borrowings on revolving credit facilities

 

 

50,000

 

 

 

 

Cash payments on derivatives containing other-than-insignificant financing element

 

 

 

 

 

(1,312

)

Cash dividends paid

 

 

(2,980

)

 

 

(1,681

)

Cash paid to tax authority upon vesting of stock-based compensation

 

 

(970

)

 

 

(489

)

Net cash provided by/(used in) financing activities

 

 

11,101

 

 

 

(18,853

)

Net decrease in cash, cash equivalents and restricted cash

 

 

(23,329

)

 

 

(43,276

)

Cash, cash equivalents and restricted cash at beginning of year

 

 

98,933

 

 

 

215,677

 

Cash, cash equivalents and restricted cash at end of period

 

$

75,604

 

 

$

172,401

 

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 March 31, 2022 and the comparable period of 2021. Revenue days in the quarter ended March 31, 2022 totaled 6,645 compared with 2,809 in the prior year quarter. A summary fleet list by vessel class can be found later in this press release. The information in these tables excludes commercial pool fees/commissions averaging approximately $661 and $620 per day for the three months ended March 31, 2022 and 2021, respectively.

 

 

Three Months Ended March 31, 2022

 

Three Months Ended March 31, 2021

 

 

Spot

 

Fixed

 

Total

 

Spot

 

Fixed

 

Total

Crude Tankers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VLCC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

12,269

 

$

45,179

 

 

 

 

$

15,721

 

$

47,438

 

 

 

Number of Revenue Days

 

 

801

 

 

35

 

 

836

 

 

759

 

 

155

 

 

914

Suezmax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

13,610

 

$

26,618

 

 

 

 

$

12,215

 

$

-

 

 

 

Number of Revenue Days

 

 

1,060

 

 

90

 

 

1,150

 

 

180

 

 

-

 

 

180

Aframax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

13,216

 

$

-

 

 

 

 

$

11,665

 

$

-

 

 

 

Number of Revenue Days

 

 

307

 

 

-

 

 

307

 

 

270

 

 

-

 

 

270

Panamax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

20,551

 

$

-

 

 

 

 

$

14,172

 

$

10,688

 

 

 

Number of Revenue Days

 

 

70

 

 

-

 

 

70

 

 

90

 

 

516

 

 

606

Total Crude Tankers Revenue Days

 

 

2,238

 

 

125

 

 

2,363

 

 

1,299

 

 

671

 

 

1,970

Product Carriers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aframax (LR2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

-

 

$

17,145

 

 

 

 

$

-

 

$

17,780

 

 

 

Number of Revenue Days

 

 

-

 

 

90

 

 

90

 

 

-

 

 

90

 

 

90

Panamax (LR1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

20,300

 

$

-

 

 

 

 

$

12,860

 

$

-

 

 

 

Number of Revenue Days

 

 

678

 

 

-

 

 

678

 

 

374

 

 

-

 

 

374

MR

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

14,030

 

$

15,119

 

 

 

 

$

7,449

 

$

-

 

 

 

Number of Revenue Days

 

 

3,115

 

 

56

 

 

3,171

 

 

375

 

 

-

 

 

375

Handy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

12,251

 

$

-

 

 

 

 

$

-

 

$

-

 

 

 

Number of Revenue Days

 

 

343

 

 

-

 

 

343

 

 

-

 

 

-

 

 

-

Total Product Carriers Revenue Days

 

 

4,136

 

 

146

 

 

4,282

 

 

749

 

 

90

 

 

839

Total Revenue Days

 

 

6,374

 

 

271

 

 

6,645

 

 

2,048

 

 

761

 

 

2,809

Revenue days in the above tables exclude days for which recoveries were recorded under the Company’s loss of hire insurance policies.

During the 2022 and 2021 periods, each of the Company’s LR1s participated in the Panamax International Pool and transported crude oil cargoes exclusively.

Fleet Information

As of March 31, 2022, INSW’s fleet totaled 87 vessels, including three newbuilds and 84 operating vessels, of which 68 were owned, 14 were chartered in, and two FSOs were held through joint ventures.

 

 

Vessels Owned

 

Vessels Chartered-in(1)

 

Total at March 31, 2022

Vessel Fleet and Type

 

Number

 

Weighted by
Ownership

 

Number

 

Weighted by
Ownership

 

Total
Vessels

 

Vessels
Weighted by
Ownership

 

Total Dwt

Operating Fleet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VLCC

 

4

 

4

 

6

 

6

 

10

 

10

 

3,012,171

Suezmax

 

13

 

13

 

-

 

-

 

13

 

13

 

2,061,971

Aframax

 

1

 

1

 

3

 

3

 

4

 

4

 

452,375

Panamax

 

2

 

2

 

-

 

-

 

2

 

2

 

139,100

Crude Tankers

 

20

 

20

 

9

 

9

 

29

 

29

 

5,665,617

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LR2

 

-

 

-

 

1

 

1

 

1

 

1

 

112,691

LR1

 

6

 

6

 

2

 

2

 

8

 

8

 

595,134

MR

 

38

 

38

 

2

 

2

 

40

 

40

 

2,008,245

Handy

 

4

 

4

 

-

 

-

 

4

 

4

 

148,696

Product Carriers

 

48

 

48

 

5

 

5

 

53

 

53

 

2,864,766

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FSO

 

2

 

1

 

-

 

-

 

2

 

1

 

864,046

JV Vessels

 

2

 

1

 

0

 

0

 

2

 

1

 

864,046

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating Fleet

 

70

 

69

 

14

 

14

 

84

 

83

 

9,394,429

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Newbuild Fleet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VLCC

 

3

 

3

 

-

 

-

 

3

 

3

 

900,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Newbuild Fleet

 

3

 

3

 

-

 

-

 

3

 

3

 

900,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating and Newbuild Fleet

 

73

 

72

 

14

 

14

 

87

 

86

 

10,294,429

(1)

Includes both bareboat charters and time charters, but excludes vessels chartered in where the duration of the charter was one year or less at inception.

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.

(A) EBITDA and Adjusted EBITDA

EBITDA represents net income/(loss) 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 as reflected in the condensed consolidated statements of operations, to EBITDA and Adjusted EBITDA:

 

 

Three Months Ended March 31,

($ in thousands)

 

2022

 

2021

Net loss

 

$

(13,001

)

 

$

(13,365

)

Income tax provision

 

 

4

 

 

 

-

 

Interest expense

 

 

12,740

 

 

 

7,280

 

Depreciation and amortization

 

 

27,000

 

 

 

16,754

 

EBITDA

 

 

26,743

 

 

 

10,669

 

Amortization of time charter contracts acquired

 

 

340

 

 

 

-

 

Third-party debt modification fees

 

 

187

 

 

 

-

 

(Gain)/loss on disposal of vessels and other property, including impairments

 

 

(1,376

)

 

 

11

 

Write-off of deferred financing costs

 

 

133

 

 

 

-

 

Adjusted EBITDA

 

$

26,027

 

 

$

10,680

 

(B) Cash

 

March 31,

 

December 31,

($ in thousands)

2022

 

2021

Cash and cash equivalents

$

74,553

 

$

97,883

Restricted cash

 

1,051

 

 

1,050

Total Cash

$

75,604

 

$

98,933

(C) 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 March 31,

($ in thousands)

 

2022

 

2021

Time charter equivalent revenues

 

$

97,975

 

$

45,169

Add: Voyage expenses

 

 

3,507

 

 

1,587

Shipping revenues

 

$

101,482

 

$

46,756

 

Investor Relations & Media Contact:
Tom Trovato, International Seaways, Inc.
(212) 578-1602
ttrovato@intlseas.com

Source: International Seaways, Inc.

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