International Seaways Reports Fourth Quarter and Full Year 2022 Results
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 fourth quarter and full year of 2022.
HIGHLIGHTS & RECENT DEVELOPMENTS
- Highest Earnings in Our History: Net income for the fourth quarter was $218.4 million, or $4.40 per diluted share, compared to a net loss of $34.0 million, or $0.68 per diluted share, in the fourth quarter of 2021. For the full year 2022, net income was $387.9 million, or $7.77 per diluted share, representing an increase of $521.4 million compared to the full year of 2021, which was a net loss of $133.5 million, or $3.48 per share.
- Adjusted EBITDA(A) for the fourth quarter was $254.3 million and for the full year of 2022 was $549.1 million.
- Total liquidity was $541.1 million as of December 31, 2022, which includes cash (and short-term cash investments)(B) of $323.7 million and $217.4 million of remaining undrawn revolver capacity.
- Fleet Optimization Program:
- Sold a 2008-built MR in the fourth quarter for net proceeds after debt repayment of approximately $14 million and has agreed to sell another 2008-built MR in the first quarter of 2023, which is expected to generate $14 million in net proceeds after debt repayment.
- Declared purchase options on two, 2009-built Aframaxes under sale leaseback arrangement for an expected net cash outflow in March 2023 of approximately $41 million in aggregate, representing at a discount of over 45% to current market prices.
- Balance Sheet Enhancements:
- Received commitments from the Company’s lenders for the $750 Million Credit Facility to amend the senior secured credit facility, subject to completion of formal documentation and closing, which is expected to occur in March 2023, to among other things:
- Increase the revolving credit facility (“RCF”) by $40 million to nearly $260 million, which remains fully undrawn.
- Reduce the outstanding balance on the term loan by approximately $100 million, as a result of a prepayment to be made on closing.
- Reduce the collateral package by 22 vessels, creating unencumbered vessels representing nearly one-third of the total fleet.
- Received commitments from the Company’s lenders for the $750 Million Credit Facility to amend the senior secured credit facility, subject to completion of formal documentation and closing, which is expected to occur in March 2023, to among other things:
- Returns to Shareholders:
- Declared a combined dividend of $2.00 per share composed of a supplemental dividend of $1.88 per share in addition to regular quarterly cash dividend of $0.12 per share to be paid in March 2023.
- During 2022, the Company paid a cumulative $1.42 per share in regular and supplemental dividends and repurchased 687,740 shares for approximately $20 million, representing nearly $90 million in returns to shareholders.
- Returned to shareholders over $280 million in aggregate since the start of 2020.
“2022 was an outstanding year for Seaways, as we capitalized on our increased scale, further enhanced our financial strength, and continued to return significant capital to shareholders,” said Lois K. Zabrocky, International Seaways’ President and CEO. “We generated record earnings for the third consecutive quarter as a result of our strategy of building a diverse fleet of crude and product tankers with sizable operating leverage. In 2022, we continued to build our track record of returning cash to shareholders with nearly $90 million in cash returns by doubling our quarterly dividend, adding supplemental dividends and executing our share repurchase program. Today, we’re continuing that momentum, announcing a combined dividend of $2.00 per share, representing cumulative returns to shareholders of over $280 million since the start of 2020.”
Ms. Zabrocky added, “We are well positioned to carry our significant momentum forward and we anticipate continued market strength based on growing demand and higher tanker utilization from the shifting global energy trade, combined with the lowest orderbook in more than 30 years. We expect near-term catalysts to continue to drive tanker earnings, including sanctions on Russian oil and the reopening of China. Our operating leverage positions us well to capitalize on these trends. Our history of renewing our fleet at cyclical lows continues to serve us well, and we look forward to the delivery of three dual-fuel LNG VLCCs in the first half of 2023, which will not only reduce our carbon footprint today but are well suited to adhere to anticipated environmental regulation into the future.”
Jeff Pribor, the Company’s CFO stated, “We continue to strengthen our balance sheet, generating significant free cash flow from our diversified fleet. With ample liquidity of over $540 million at year’s end and a net loan-to-value ratio of under 24%, we remain focused on executing our disciplined capital allocation strategy, investing in the fleet opportunistically, further de-levering, and continuing to return cash to shareholders. Following the closing of the amendment to our credit facility, our cash break-even levels are expected to decrease by more than $600 per day, which further enhances our ability to generate more free cash flow and continue building our track record of returning cash to shareholders.”
FOURTH QUARTER 2022 RESULTS
Net income for the fourth quarter of 2022 was $218.4 million, or $4.40 per diluted share, compared to a net loss of $34.0 million, or $0.68 per diluted share, for the fourth quarter of 2021. Net income for the quarter reflects the impact of the disposal of older vessels and the write-off of deferred finance costs aggregating $9.7 million. Net income excluding these items was $208.8 million, or $4.21 per diluted share. The increase in the fourth quarter of 2022 was primarily driven by a $242.7 million increase in TCE revenues(C) as a result of higher demand for tankers due to seasonality, restocking of historically low global inventories and the effects of sanctions on Russian oil that disrupted trading patterns leading to longer voyages and higher tanker utilization.
Consolidated TCE revenues for the fourth quarter were $335.7 million, compared to $93.0 million for the fourth quarter of 2021. Shipping revenues for the fourth quarter were $338.2 million, compared to $94.7 million for the fourth quarter of 2021.
Adjusted EBITDA for the fourth quarter was $254.3 million, compared to $11.9 million for the fourth quarter of 2021.
Crude Tankers
TCE revenues for the Crude Tankers segment were $150.7 million for the fourth quarter, compared to $42.4 million for the fourth quarter of 2021. This increase was primarily attributable to an increase in spot rates as the average spot earnings of the VLCC, Suezmax and Aframax sectors were approximately $64,600, $59,100 and $62,000 per day, respectively, compared with approximately $14,300, $13,100 and $11,500 per day, respectively, during the fourth quarter of 2021. Shipping revenues for the Crude Tankers segment were $152.9 million for the fourth quarter of 2022, compared to $44.5 million for the fourth quarter of 2021.
Product Carriers
TCE revenues for the Product Carriers segment were $184.9 million for the fourth quarter, compared to $50.5 million for the fourth quarter of 2021. This significant increase is attributable to substantially higher spot rates with average spot earnings for the LR1 and MR sectors of approximately $64,000 and $39,700 per day, respectively, in the fourth quarter of 2022 compared with approximately $17,400 and $11,300 per day, respectively, in the fourth quarter of 2021. Shipping revenues for the Product Carriers segment were $185.2 million for the fourth quarter, compared to $50.2 million for the fourth quarter of 2021.
FULL YEAR 2022 RESULTS
Net income for the year ended December 31, 2022, was $387.9 million, or $7.77 per diluted share, compared to a net loss of $133.5 million, or $3.48 per diluted share, for the year ended December 31, 2021. The reported net income for 2022 includes the impact of one-time items, consisting of the gain on disposal of vessels, vessel impairments, net loss on sale of investments in affiliated companies, debt modification expenses and write-off of deferred financing costs, which aggregated $7.8 million. Excluding these items, net income for 2022 was $380 million, or $7.62 per diluted share.
Consolidated TCE revenues for the year ended December 31, 2022, were $853.7 million, compared to $255.9 million for the year ended December 31, 2021. Shipping revenues for the year ended December 31, 2022, were $864.7 million, compared to $272.5 million for the year ended December 31, 2021.
Adjusted EBITDA for the year ended December 31, 2022 was $549.1 million, compared to $40.4 million for the year ended December 31, 2021.
Crude Tankers
TCE revenues for the Crude Tankers segment were $321.9 million for the year ended December 31, 2022, compared to $144.3 million for the year ended December 31, 2021. Shipping revenues for the Crude Tankers segment were $331.7 million for the year ended December 31, 2022, compared to $156.3 million for the year ended December 31, 2021.
Product Carriers
TCE revenues for the Product Carriers segment were $531.9 million for the year ended December 31, 2022, compared to $111.6 million for the year ended December 31, 2021. Shipping revenues for the Product Carriers segment were $533.0 million for the year ended December 31, 2022, compared to $116.3 million for the year ended December 31, 2021.
DELEVERAGING INITIATIVES
In August 2022, the Company redeemed the $25 million aggregate principal outstanding of the 8.5% senior notes due June 2023.
In November 2022, the Company repaid the outstanding balance of $17.8 million on the term loan facility with Macquarie Bank, which unencumbered three vessels.
In February 2023, the lending syndicate for the $750 Million Credit Facility unanimously committed to amend the facility whereby the Company will make a prepayment of approximately $100 million on the term loan, the revolving credit facility will increase by $40 million and 22 vessels will be removed from the collateral package. The amendment is subject to formal documentation and signing, which is expected to occur in March 2023.
FLEET OPTIMIZATION PROGRAM
During 2022, the Company sold or recycled eight vessels with an average age of over 16.5 years. Two of the eight vessels were Panamaxes built between 2002 and 2004 that were sold to be recycled in compliance with the Hong Kong Convention. The Company sold all four of its remaining Handysize vessels with an average age of approximately 16 years and two 2008-built MRs, which saved approximately $4 million per vessel on upcoming drydock and ballast water treatment installation expenditures. In total, net proceeds after debt repayments from vessel sales and recycling were approximately $68 million.
In the first quarter of 2023, the Company has also agreed to sell another 2008-built MR, the High Mercury, which is expected to generate approximately $14 million in net proceeds after debt repayment.
In March 2022, the Company also completed the sale of a 2010-built MR and the purchase of a 2011-built LR1 with the same counterparty for a net cost of approximately $3 million. The LR1 was delivered into our niche commercial pool, Panamax International.
In December 2022, the Company exercised its purchase options on two 2009-built Aframax vessels under sale leaseback arrangement, which were accounted for as operating leases prior to declaration of the options. The vessels are expected to deliver in March 2023 at a net purchase price payable at exercise of approximately $41 million, representing a discount of approximately 45% to the current market value of these vessels.
During 2022, the Company completed the installation of a scrubber on a 2012-built Suezmax, increasing the total count of the fleet fitted with scrubbers to 12, of which ten are VLCCs and two are Suezmaxes. Drydockings for 15 vessels were completed during 2022.
The newbuilding program, composed of three dual-fuel VLCCs, continues to progress with one vessel scheduled for March 2023 delivery and the remaining two scheduled for delivery in the first half of 2023. The vessels were ordered for an aggregate contract price of $288 million and have approximately $172 million in remaining payments as of December 31, 2022, which are fully financed under a sale leaseback arrangement. Upon delivery, the vessels will commence long term time charters with an oil major for the next seven years.
RETURNING CASH TO SHAREHOLDERS
During 2022, the Company doubled its regular quarterly dividend from $0.06 per share to $0.12 per share. The Company also paid a supplemental dividend of $1.00 per share in December 2022. In total, the Company paid $69.8 million in dividends during 2022.
In August 2022, the Company repurchased 687,740 shares of its common stock in open market purchases, at an average price of $29.08 per share, for a total cost of approximately $20.0 million. The Company’s current share repurchase program has approximately $40.0 million remaining and extends through the end of 2023.
The Company’s Board of Directors declared a regular quarterly dividend of $0.12 per share of common stock and a supplemental dividend of $1.88 per share of common stock on February 27, 2023. Both dividends will be paid on March 28, 2023, to shareholders with a record date at the close of business on March 14, 2023.
BALANCE SHEET ENHANCEMENTS
In May 2022, the Company refinanced three existing credit facilities into a senior secured credit facility with an aggregate capacity of $750 million (the “$750 Million Credit Facility”), composed of a term loan with an aggregate principal amount of $530 million and a revolving credit facility of $220 million. The five-year agreement, which was nearly two times oversubscribed, extended the Company’s debt maturities, reduced the average margin and lowered quarterly amortization payments. The Company also enhanced its sustainability-linked features in the covenant structure of the $750 Million Credit Facility to include a target expenditure on energy efficiency improvements, decarbonization and other environmental related initiatives and a safety target (lost time injury frequency performance) in addition to reduction in carbon emissions outlined in the Poseidon Principles.
In June 2022, the Company sold its 50% stake in two floating storage and offshore (“FSO”) vessels to its joint venture partner. The Company received proceeds, net of adjustments for working capital and expenses, of $140 million.
In the first half of 2022, the Company refinanced three MRs through sale and leaseback arrangements with Japanese leasing companies, which generated approximately $21.7 million after debt repayment.
CONFERENCE CALL
The Company will host a conference call to discuss its fourth quarter 2022 results at 10:00 a.m. Eastern Time (“ET”) on Tuesday, February 28, 2023. To access the call, participants should dial (833) 470-1428 for domestic callers and (929) 526-1599 for international callers and entering 426484. 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 March 7, 2023 by dialing (866) 813-9403 for domestic callers and +44 204 525 0658 for international callers, and entering Access Code 907092.
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 77 vessels, including 13 VLCCs (including three newbuildings), 13 Suezmaxes, five Aframaxes/LR2s, eight LR1s and 38 MR tankers. 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 plans to issue dividends, the Company’s 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 2022 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.
|
|
||||||||||||||||||||||||||||
|
Consolidated Statements of Operations |
||||||||||||||||||||||||||||
|
($ in thousands, except per share amounts) |
||||||||||||||||||||||||||||
|
|
|
Three Months Ended |
|
Fiscal Year Ended |
||||||||||||||||||||||||
|
|
|
December 31, |
|
December 31, |
||||||||||||||||||||||||
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||||||||||||||
|
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
|
|
|
|
||||||||||||||||
|
Shipping Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Pool revenues |
|
$ |
311,193 |
|
|
$ |
74,340 |
|
|
$ |
774,922 |
|
|
$ |
175,997 |
|
||||||||||||
|
Time and bareboat charter revenues |
|
|
10,239 |
|
|
|
10,018 |
|
|
|
33,034 |
|
|
|
50,094 |
|
||||||||||||
|
Voyage charter revenues |
|
|
16,725 |
|
|
|
10,312 |
|
|
|
56,709 |
|
|
|
46,455 |
|
||||||||||||
|
Total Shipping Revenues |
|
|
338,157 |
|
|
|
94,670 |
|
|
|
864,665 |
|
|
|
272,546 |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Voyage expenses |
|
|
2,507 |
|
|
|
1,665 |
|
|
|
10,955 |
|
|
|
16,686 |
|
||||||||||||
|
Vessel expenses |
|
|
62,229 |
|
|
|
70,679 |
|
|
|
240,674 |
|
|
|
183,057 |
|
||||||||||||
|
Charter hire expenses |
|
|
9,333 |
|
|
|
6,651 |
|
|
|
32,132 |
|
|
|
23,934 |
|
||||||||||||
|
Depreciation and amortization |
|
|
28,404 |
|
|
|
27,035 |
|
|
|
110,388 |
|
|
|
86,674 |
|
||||||||||||
|
General and administrative |
|
|
13,499 |
|
|
|
10,094 |
|
|
|
46,351 |
|
|
|
33,235 |
|
||||||||||||
|
Third-party debt modification fees |
|
|
– |
|
|
|
84 |
|
|
|
1,158 |
|
|
|
110 |
|
||||||||||||
|
Merger and integration related costs |
|
|
– |
|
|
|
3,180 |
|
|
|
– |
|
|
|
50,740 |
|
||||||||||||
|
Gain on disposal of vessels and other property, net of impairments |
|
|
(10,308 |
) |
|
|
(4,665 |
) |
|
|
(19,647 |
) |
|
|
(9,753 |
) |
||||||||||||
|
Total operating expenses |
|
|
105,664 |
|
|
|
114,723 |
|
|
|
422,011 |
|
|
|
384,683 |
|
||||||||||||
|
Income/(loss) from vessel operations |
|
|
232,493 |
|
|
|
(20,053 |
) |
|
|
442,654 |
|
|
|
(112,137 |
) |
||||||||||||
|
Equity in (loss)/income of affiliated companies |
|
|
280 |
|
|
|
5,265 |
|
|
|
714 |
|
|
|
21,838 |
|
||||||||||||
|
Operating income/(loss) |
|
|
232,773 |
|
|
|
(14,788 |
) |
|
|
443,368 |
|
|
|
(90,299 |
) |
||||||||||||
|
Other income/(expense) |
|
|
2,772 |
|
|
|
(6,393 |
) |
|
|
2,332 |
|
|
|
(5,947 |
) |
||||||||||||
|
Income/(loss) before interest expense and income taxes |
|
|
235,545 |
|
|
|
(21,181 |
) |
|
|
445,700 |
|
|
|
(96,246 |
) |
||||||||||||
|
Interest expense |
|
|
(17,091 |
) |
|
|
(11,871 |
) |
|
|
(57,721 |
) |
|
|
(36,796 |
) |
||||||||||||
|
Income/(loss) before income taxes |
|
|
218,454 |
|
|
|
(33,052 |
) |
|
|
387,979 |
|
|
|
(133,042 |
) |
||||||||||||
|
Income tax provision |
|
|
(25 |
) |
|
|
(1,582 |
) |
|
|
(88 |
) |
|
|
(1,618 |
) |
||||||||||||
|
Net income/(loss) |
|
|
218,429 |
|
|
|
(34,634 |
) |
|
|
387,891 |
|
|
|
(134,660 |
) |
||||||||||||
|
Less: Net loss attributable to noncontrolling interests |
|
|
— |
|
|
|
(642 |
) |
|
|
— |
|
|
|
(1,168 |
) |
||||||||||||
|
Net income/(loss) attributable to the Company |
|
$ |
218,429 |
|
|
$ |
(33,992 |
) |
|
$ |
387,891 |
|
|
$ |
(133,492 |
) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Weighted Average Number of Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Basic |
|
|
49,049,539 |
|
|
|
50,310,043 |
|
|
|
49,381,459 |
|
|
|
38,407,007 |
|
||||||||||||
|
Diluted |
|
|
49,619,307 |
|
|
|
50,310,043 |
|
|
|
49,844,904 |
|
|
|
38,407,007 |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Per Share Amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Basic net earnings/(loss) per share |
|
$ |
4.45 |
|
|
$ |
(0.68 |
) |
|
$ |
7.85 |
|
|
$ |
(3.48 |
) |
||||||||||||
|
Diluted net earnings/(loss) per share |
|
$ |
4.40 |
|
|
$ |
(0.68 |
) |
|
$ |
7.77 |
|
|
$ |
(3.48 |
) |
||||||||||||
|
|
|
|
|
|
|
|
|
Consolidated Balance Sheets |
|
|
|
|
|
|
|
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
December 31, |
|
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
243,744 |
|
$ |
97,883 |
|
Short-term investments |
|
|
80,000 |
|
|
– |
|
Voyage receivables |
|
|
289,775 |
|
|
107,096 |
|
Other receivables |
|
|
12,583 |
|
|
5,651 |
|
Inventories |
|
|
531 |
|
|
2,110 |
|
Prepaid expenses and other current assets |
|
|
8,995 |
|
|
11,759 |
|
Current portion of derivative asset |
|
|
6,987 |
|
|
– |
|
Total Current Assets |
|
|
642,615 |
|
|
224,499 |
|
|
|
|
|
|
|
|
|
Restricted cash |
|
|
– |
|
|
1,050 |
|
Vessels and other property, less accumulated depreciation |
|
|
1,680,010 |
|
|
1,802,850 |
|
Vessels construction in progress |
|
|
123,940 |
|
|
49,291 |
|
Deferred drydock expenditures, net |
|
|
65,611 |
|
|
55,753 |
|
Operating lease right-of-use assets |
|
|
8,471 |
|
|
23,168 |
|
Finance lease right-of-use assets |
|
|
44,391 |
|
|
– |
|
Investments in and advances to affiliated companies |
|
|
36,414 |
|
|
180,331 |
|
Long-term derivative asset |
|
|
4,662 |
|
|
1,296 |
|
Time charter contracts acquired, net |
|
|
– |
|
|
842 |
|
Other assets |
|
|
9,220 |
|
|
7,700 |
|
Total Assets |
|
$ |
2,615,334 |
|
$ |
2,346,780 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
Accounts payable, accrued expenses and other current liabilities |
|
$ |
51,069 |
|
$ |
44,964 |
|
Current portion of operating lease liabilities |
|
|
1,596 |
|
|
8,393 |
|
Current portion of finance lease liabilities |
|
|
41,870 |
|
|
– |
|
Current installments of long-term debt |
|
|
162,854 |
|
|
178,715 |
|
Current portion of derivative liability |
|
|
– |
|
|
2,539 |
|
Total Current Liabilities |
|
|
257,389 |
|
|
234,611 |
|
Long-term operating lease liabilities |
|
|
7,740 |
|
|
12,522 |
|
Long-term debt, net |
|
|
860,578 |
|
|
926,270 |
|
Long-term portion of derivative liability |
|
|
– |
|
|
757 |
|
Other liabilities |
|
|
1,875 |
|
|
2,288 |
|
Total Liabilities |
|
|
1,127,582 |
|
|
1,176,448 |
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
Total Equity |
|
|
1,487,752 |
|
|
1,170,332 |
|
Total Liabilities and Equity |
$ |
2,615,334 |
|
$ |
2,346,780 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
Consolidated Statements of Cash Flows |
|
|
|
|
|
|
||
|
($ in thousands) |
|
|
|
|
|
|
||
|
|
|
|
Fiscal Year Ended December 31, |
|||||
|
|
|
|
2022 |
|
|
2021 |
||
|
|
|
|
|
|
||||
|
Cash Flows from Operating Activities: |
|
|
|
|
|
|
||
|
Net income/(loss) |
|
$ |
387,891 |
|
|
$ |
(134,660 |
) |
|
Items included in net income/(loss) not affecting cash flows: |
|
|
|
|
|
|
||
|
Depreciation and amortization |
|
|
110,388 |
|
|
|
86,674 |
|
|
Loss on write-down of vessels and other assets |
|
|
1,697 |
|
|
|
3,497 |
|
|
Amortization of debt discount and other deferred financing costs |
|
|
5,224 |
|
|
|
2,313 |
|
|
Amortization of time charter hire contracts acquired |
|
|
842 |
|
|
|
2,428 |
|
|
Deferred financing costs write-off |
|
|
1,266 |
|
|
|
2,113 |
|
|
Stock compensation |
|
|
6,746 |
|
|
|
10,529 |
|
|
Earnings of affiliated companies |
|
|
(10,297 |
) |
|
|
(21,838 |
) |
|
Merger and integration related costs, noncash |
|
|
— |
|
|
|
31,053 |
|
|
Change in fair value of interest rate collar recorded through earnings |
|
|
— |
|
|
|
— |
|
|
Other – net |
|
|
(2,242 |
) |
|
|
2,969 |
|
|
Items included in net income/(loss) related to investing and financing activities: |
|
|
|
|
|
|
||
|
Gain on disposal of vessels and other assets, net |
|
|
(21,344 |
) |
|
|
(13,250 |
) |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
4,465 |
|
|
Loss on sale of investments in affiliated companies |
|
|
9,513 |
|
|
|
— |
|
|
Cash distributions from affiliated companies |
|
|
3,111 |
|
|
|
9,835 |
|
|
Payments for drydocking |
|
|
(43,327 |
) |
|
|
(42,416 |
) |
|
Insurance claims proceeds related to vessel operations |
|
|
5,301 |
|
|
|
1,846 |
|
|
Changes in operating assets and liabilities |
|
|
(166,968 |
) |
|
|
(21,750 |
) |
|
Net cash provided by/(used in) operating activities |
|
|
287,801 |
|
|
|
(76,192 |
) |
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
||
|
Cash acquired, net of equity issuance costs related to merger |
|
|
— |
|
|
|
54,047 |
|
|
Expenditures for vessels, vessel improvements and vessels under construction |
|
|
(115,976 |
) |
|
|
(78,035 |
) |
|
Proceeds from disposal of vessels and other assets |
|
|
99,157 |
|
|
|
165,809 |
|
|
Expenditures for other property |
|
|
(710 |
) |
|
|
(979 |
) |
|
Investments in and advances to affiliated companies, net |
|
|
1,362 |
|
|
|
(7,554 |
) |
|
Proceeds from sale of investment in affiliated companies |
|
|
138,966 |
|
|
|
— |
|
|
Investments in short term time deposits |
|
|
(105,000 |
) |
|
|
— |
|
|
Proceeds from maturities of short term time deposits |
|
|
25,000 |
|
|
|
— |
|
|
Net cash provided by investing activities |
|
|
42,799 |
|
|
|
133,288 |
|
|
Cash Flows from Financing Activities: |
|
|
|
|
|
|
||
|
Borrowings on long term debt, net of lenders’ fees and deferred financing costs |
|
|
640,141 |
|
|
|
83,712 |
|
|
Repayments of debt |
|
|
(798,740 |
) |
|
|
(619,273 |
) |
|
Proceeds from sale and leaseback financing, net of issuance and deferred financing costs |
|
|
108,005 |
|
|
|
447,086 |
|
|
Payments on sale and leaseback financing and finance lease |
|
|
(39,240 |
) |
|
|
(5,678 |
) |
|
Cash payments on derivatives containing other-than-insignificant financing elements |
|
|
— |
|
|
|
(15,697 |
) |
|
Cash dividends paid |
|
|
(69,841 |
) |
|
|
(40,939 |
) |
|
Repurchases of common stock |
|
|
(20,017 |
) |
|
|
(16,660 |
) |
|
Distribution to noncontrolling interest |
|
|
— |
|
|
|
(5,266 |
) |
|
Cash paid to tax authority upon vesting or exercise of stock-based compensation |
|
|
(6,097 |
) |
|
|
(1,125 |
) |
|
Other – net |
|
|
— |
|
|
|
— |
|
|
Net cash used in financing activities |
|
|
(185,789 |
) |
|
|
(173,840 |
) |
|
Net increase/(decrease) in cash, cash equivalents and restricted cash |
|
|
144,811 |
|
|
|
(116,744 |
) |
|
Cash, cash equivalents and restricted cash at beginning of year |
|
|
98,933 |
|
|
|
215,677 |
|
|
Cash, cash equivalents and restricted cash at end of year |
|
$ |
243,744 |
|
|
$ |
98,933 |
|
Contacts
Investor Relations & Media:
Tom Trovato, International Seaways, Inc.
(212) 578-1602
ttrovato@intlseas.com
Category: Earnings
