OSG
$1.71
Overseas Shipholding Group
($.02)
(1.16%)
Earnings Details
Quarter September 2021
Tuesday, November 9, 2021 7:30:00 AM
Tweet Share Watch
Summary

Overseas Shipholding Group (OSG) Recent Earnings

Overseas Shipholding Group (OSG) reported a Quarter September 2021 loss of $0.11 per share on revenue of $94.0 million.. Revenue fell 11.1% compared to the same quarter a year ago.

Overseas Shipholding Group, Inc. (NYSE: OSG) is a publicly traded company providing energy transportation services for crude oil and petroleum products in the U.S. Flag markets.

Results
Reported Earnings
($0.11)
Earnings Whisper
-
Consensus Estimate
Reported Revenue
$94.0 Mil
Revenue Estimate
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Overseas Shipholding Group Reports Third Quarter 2021 Results

TAMPA, Fla.--(BUSINESS WIRE)--Overseas Shipholding Group, Inc. (NYSE: OSG) (the “Company” or “OSG”), a leading provider of energy transportation services for crude oil and petroleum products in the U.S. Flag markets, today reported results for the third quarter 2021.

  • Shipping revenues for the third quarter 2021 were $94.0 million, an increase of $5.6 million from the second quarter 2021. Compared to the third quarter 2020, shipping revenues decreased 11.1% from $105.7 million.
  • Net loss for the third quarter 2021 was $16.0 million, or $(0.18) per diluted share, compared with net loss of $10.7 million, or ($0.12) per diluted share, in the second quarter 2021. Net loss was $0.7 million, or $(0.01) per diluted share, for the third quarter 2020. During the third quarter of 2021, the Company recognized an impairment charge of $1.0 million on two of our leased vessels.
  • Time charter equivalent (TCE) revenues(A), a non-GAAP measure, for the third quarter 2021 were $75.4 million, an increase of $3.7 million from second quarter 2021. TCE revenues were down 18.3% compared to third quarter 2020.
  • Third quarter 2021 Adjusted EBITDA(B), a non-GAAP measure, was $12.2 million, an increase of $2.0 million from the second quarter. Adjusted EBITDA decreased 44.1% from $21.8 million in the third quarter 2020.
  • In September 2021, the Company refinanced our term loan due December 2023 and term loan due November 2026, and partially refinanced our Alaska tankers term loan, due March 2025, with a $325.0 million term loan due October 2028. This lengthened the maturity of our long-term debt and improved our liquidity. The Company recognized an aggregate net loss of $8.0 million on these transactions, which reflects a write-off of unamortized deferred financing costs and prepayment fees. As part of this transaction, the Company amended our remaining debt agreements, resulting in covenant provisions that are consistent with the terms of the new term loan.
  • Total cash(C) was $85.0 million as of September 30, 2021.
  • During the quarter, two of seven vessels came out of lay-up.

Sam Norton, President and CEO, commenting on the recently completed quarter, stated, “Most notable of today’s announced financial results was the continued sequential improvement in quarter-to-quarter EBITDA performance. Vessels in operation performed well during the third quarter, providing solid cashflow in a market environment that has continued to be beset with high levels of uncertainty. In recent weeks, two vessels have been re-activated and rejoined the operating fleet. We are optimistic that this trend will continue as Jones Act vessel availability across the fourth quarter and into 2022 tightens. At this time, all of OSG’s active vessels will be operating under time charter into the first quarter of 2022. Current conditions provide strong support for re-activating additional laid-up vessels by year end, providing optimism that sequentially improving quarter to quarter EBITDA performance is attainable over the next six months.”

Mr. Norton added, “Having bolstered our liquidity position with the completion of our refinancing at the end of the third quarter, OSG is now well positioned to pursue opportunities in what we continue to see as an improving market environment. Global energy markets are on track to regain pre-COVID consumption levels by early next year, with demand signals indicating a rising need for transportation capacity. Increased international air travel in the months ahead, in particular, should add to firming market demand. We remain optimistic that a return to more normalized market conditions lies ahead in 2022.”

 

A, B, C Reconciliations of these non-GAAP financial measures are included in the financial tables attached to this press release starting on Page 8.

Third Quarter 2021 Results

Shipping revenues were $94.0 million for the quarter, an increase of $5.6 million, or 6.3%, from the second quarter of 2021. TCE revenues increased $3.7 million, or 5.1%, from the second quarter to $75.4 million in the third quarter. The revenue increase was primarily a result of a 23-day decrease in scheduled drydocking and a 38-day decrease in lay-up days, as two of seven vessels came out of lay-up during the third quarter of 2021.

The third quarter operating loss was $5.6 million compared to the second quarter operating loss of $5.8 million.

Quarterly adjusted EBITDA increased to $12.2 million during the third quarter, a $2.0 million increase from the second quarter of 2021. The increase was driven by the increased revenues for the quarter.

Shipping revenues were $94.0 million for the quarter, down 11.1% compared with the third quarter of 2020. TCE revenues for the third quarter of 2021 were $75.4 million, a decrease of $16.9 million, or 18.3%, compared with the third quarter of 2020, primarily a result of a 498-day increase in lay-up days due to vessels in lay-up during the third quarter of 2021 and one less MR tanker in the Company's fleet, Overseas Gulf Coast, which was sold during the second quarter of 2021. The decrease was offset by (a) the addition to the Company's fleet of one ATB, OSG 205 and OSG Courageous, which was delivered during the fourth quarter of 2020, (b) a 171-day decrease in scheduled drydocking and (c) an increase in Delaware Bay lightering volumes.

Operating loss for the third quarter of 2021 was $5.6 million compared to operating income of $5.2 million for the third quarter of 2020.

Net loss for the third quarter of 2021 was $16.0 million, or $(0.18) per diluted share, compared with net loss of $0.7 million, or $(0.01) per diluted share, for the third quarter 2020. During the third quarter of 2021, the Company recognized an aggregate net loss of $8.0 million on extinguishment of debt, which reflects a write-off of unamortized deferred financing costs and prepayment fees and an impairment charge of $1.0 million on two of the Company's leased vessels.

Adjusted EBITDA was $12.2 million for the quarter, a decrease of $9.6 million compared with the third quarter of 2020, driven primarily by the decrease in TCE revenues.

Conference Call

The Company will host a conference call to discuss its third quarter 2021 results at 10:00 a.m. Eastern Time (“ET”) on Tuesday, November 9, 2021.

To access the call, participants should dial (844) 850-0546 for domestic callers and (412) 317-5203 for international callers. 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 http://www.osg.com/.

An audio replay of the conference call will be available starting at 12:00 p.m. ET on Tuesday, November 9, 2021 through 10:59 p.m. ET on Tuesday, November 16, 2021 by dialing (877) 344-7529 for domestic callers and (412) 317-0088 for international callers, and entering Access Code 10161526.

About Overseas Shipholding Group, Inc.

Overseas Shipholding Group, Inc. (NYSE:OSG) is a publicly traded company providing energy transportation services for crude oil and petroleum products in the U.S. Flag markets. OSG is a major operator of tankers and ATBs in the Jones Act industry. OSG’s 22 vessel U.S. Flag fleet consists of three crude oil tankers doing business in Alaska, two conventional ATBs, two lightering ATBs, three shuttle tankers, ten MR tankers, and two non-Jones Act MR tankers that participate in the U.S. Maritime Security Program. OSG also currently owns and operates one Marshall Islands flagged MR tanker which trades internationally.

OSG is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world’s most customer-focused marine transportation companies and is headquartered in Tampa, FL. More information is available at www.osg.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, the Company may make or approve certain forward-looking 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 our prospects, supply and demand for vessels in the markets in which we operate and the impact on market rates and vessel earnings, the continued stability of our niche businesses, and the impact of our time charter contracts on our future financial performance. Forward-looking statements are based on our current plans, estimates and projections, and are subject to change based on a number of factors. COVID-19 has had, and will continue to have, a profound impact on our workforce and many other aspects of our business and industry. Investors should carefully consider the risk factors outlined in more detail in our filings with the SEC. We do not assume any obligation to update or revise any forward-looking statements except as may be required by applicable law. Forward-looking statements and written and oral forward-looking statements attributable to us or our representatives after the date of this press release are qualified in their entirety by the cautionary statements contained in this paragraph and in other reports previously or hereafter filed by us with the SEC.

 
Consolidated Statements of Operations
($ in thousands, except per share amounts)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2021

 

2020

 

2021

 

2020

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

Shipping Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Time and bareboat charter revenues

 

$

64,535

 

 

$

89,273

 

 

$

191,130

 

 

$

264,085

 

Voyage charter revenues

 

 

29,432

 

 

 

16,475

 

 

 

72,469

 

 

 

57,061

 

 

 

 

93,967

 

 

 

105,748

 

 

 

263,599

 

 

 

321,146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Voyage expenses

 

 

18,602

 

 

 

13,467

 

 

 

51,030

 

 

 

31,364

 

Vessel expenses

 

 

36,006

 

 

 

43,044

 

 

 

101,815

 

 

 

120,456

 

Charter hire expenses

 

 

22,806

 

 

 

22,782

 

 

 

67,719

 

 

 

67,746

 

Depreciation and amortization

 

 

15,526

 

 

 

15,253

 

 

 

45,913

 

 

 

43,488

 

General and administrative

 

 

5,707

 

 

 

6,140

 

 

 

18,076

 

 

 

19,915

 

Loss/(gain) on disposal of vessels and other property, including impairments, net

 

 

960

 

 

 

(151

)

 

 

6,257

 

 

 

959

 

Total operating expenses

 

 

99,607

 

 

 

100,535

 

 

 

290,810

 

 

 

283,928

 

(Loss)/income from vessel operations

 

 

(5,640

)

 

 

5,213

 

 

 

(27,211

)

 

 

37,218

 

Gain on termination of pre-existing arrangement

 

 

 

 

 

 

 

 

 

 

 

19,172

 

Operating (loss)/income

 

 

(5,640

)

 

 

5,213

 

 

 

(27,211

)

 

 

56,390

 

Loss on extinguishment of debt, net

 

 

(7,961

)

 

 

(488

)

 

 

(7,961

)

 

 

(503

)

Other income, net

 

 

129

 

 

 

328

 

 

 

140

 

 

 

316

 

(Loss)/income before interest expense and income taxes

 

 

(13,472

)

 

 

5,052

 

 

 

(35,032

)

 

 

56,203

 

Interest expense

 

 

(7,052

)

 

 

(5,902

)

 

 

(20,739

)

 

 

(18,143

)

(Loss)/income before income taxes

 

 

(20,524

)

 

 

(850

)

 

 

(55,771

)

 

 

38,060

 

Income tax benefit/(expense)

 

 

4,515

 

 

 

192

 

 

 

13,195

 

 

 

(7,212

)

Net (loss)/income

 

$

(16,009

)

 

$

(657

)

 

$

(42,576

)

 

$

30,848

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Number of Common Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic - Class A

 

 

90,808,080

 

 

 

89,998,301

 

 

 

90,513,150

 

 

 

89,723,751

 

Diluted - Class A

 

 

90,808,080

 

 

 

89,998,301

 

 

 

90,513,150

 

 

 

90,727,485

 

Per Share Amounts:

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted net (loss)/income - Class A

 

$

(0.18

)

 

$

(0.01

)

 

$

(0.47

)

 

$

0.34

 

 
Consolidated Balance Sheets
($ in thousands)

 

 

September 30, 2021

 

December 31, 2020

 

 

(unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

84,971

 

 

$

69,697

 

Restricted cash

 

 

37

 

 

 

49

 

Voyage receivables, including unbilled of $7,606 and $6,740, net of reserve for doubtful accounts

 

 

17,733

 

 

 

13,123

 

Income tax receivable

 

 

369

 

 

 

387

 

Other receivables

 

 

4,149

 

 

 

1,817

 

Inventories, prepaid expenses and other current assets

 

 

5,917

 

 

 

3,603

 

Total Current Assets

 

 

113,176

 

 

 

88,676

 

Vessels and other property, less accumulated depreciation

 

 

768,992

 

 

 

832,174

 

Deferred drydock expenditures, net

 

 

43,512

 

 

 

43,134

 

Total Vessels, Other Property and Deferred Drydock

 

 

812,504

 

 

 

875,308

 

Restricted cash - non current

 

 

44

 

 

 

73

 

Intangible assets, less accumulated amortization

 

 

23,767

 

 

 

27,217

 

Operating lease right-of-use assets, net

 

 

156,862

 

 

 

215,817

 

Other assets

 

 

25,914

 

 

 

24,646

 

Total Assets

 

$

1,132,267

 

 

$

1,231,737

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable, accrued expenses and other current liabilities

 

$

39,492

 

 

$

48,089

 

Current portion of operating lease liabilities

 

 

90,551

 

 

 

90,613

 

Current portion of finance lease liabilities

 

 

4,001

 

 

 

4,000

 

Current installments of long-term debt

 

 

21,530

 

 

 

38,922

 

Total Current Liabilities

 

 

155,574

 

 

 

181,624

 

Reserve for uncertain tax positions

 

 

186

 

 

 

189

 

Noncurrent operating lease liabilities

 

 

88,176

 

 

 

147,154

 

Noncurrent finance lease liabilities

 

 

19,598

 

 

 

21,360

 

Long-term debt

 

 

430,255

 

 

 

390,198

 

Deferred income taxes, net

 

 

67,802

 

 

 

80,992

 

Other liabilities

 

 

32,153

 

 

 

30,409

 

Total Liabilities

 

 

793,744

 

 

 

851,926

 

Equity:

 

 

 

 

 

 

Common stock - Class A ($0.01 par value; 166,666,666 shares authorized; 87,146,851 and 86,365,422 shares issued and outstanding)

 

 

871

 

 

 

864

 

Paid-in additional capital

 

 

594,143

 

 

 

592,564

 

Accumulated deficit

 

 

(255,911

)

 

 

(213,335

)

 

 

 

339,103

 

 

 

380,093

 

Accumulated other comprehensive loss

 

 

(580

)

 

 

(282

)

Total Equity

 

 

338,523

 

 

 

379,811

 

Total Liabilities and Equity

 

$

1,132,267

 

 

$

1,231,737

 

 
Consolidated Statements of Cash Flows
($ in thousands)

 

 

Nine Months Ended
September 30,

 

 

2021

 

2020

 

 

(unaudited)

 

(unaudited)

Cash Flows from Operating Activities:

 

 

 

 

 

 

Net (loss)/income

 

$

(42,576

)

 

$

30,848

 

Items included in net income not affecting cash flows:

 

 

 

 

 

 

Depreciation and amortization

 

 

45,913

 

 

 

43,488

 

Gain on termination of pre-existing arrangement

 

 

 

 

 

(19,172

)

Loss on disposal of vessels and other property, including impairments, net

 

 

6,257

 

 

 

959

 

Amortization of debt discount and other deferred financing costs

 

 

1,822

 

 

 

1,714

 

Compensation relating to restricted stock awards and stock option grants

 

 

1,989

 

 

 

1,685

 

Deferred income tax (benefit)/expense

 

 

(13,193

)

 

 

7,237

 

Interest on finance lease liabilities

 

 

1,362

 

 

 

1,493

 

Non-cash operating lease expense

 

 

68,383

 

 

 

68,706

 

Loss on extinguishment of debt, net

 

 

5,225

 

 

 

503

 

Distributed earnings of affiliated companies

 

 

 

 

 

3,562

 

Payments for drydocking

 

 

(14,883

)

 

 

(20,819

)

Operating lease liabilities

 

 

(69,297

)

 

 

(69,263

)

Changes in operating assets and liabilities, net

 

 

(11,430

)

 

 

1,329

 

Net cash (used in)/provided by operating activities

 

 

(20,428

)

 

 

52,270

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

Acquisition, net of cash acquired

 

 

 

 

 

(16,973

)

Proceeds from disposals of vessels and other property

 

 

32,128

 

 

 

1,407

 

Expenditures for vessels and vessel improvements

 

 

(5,827

)

 

 

(55,197

)

Net cash provided by/(used in) investing activities

 

 

26,301

 

 

 

(70,763

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

Payments on debt

 

 

(28,919

)

 

 

(35,844

)

Tax withholding on share-based awards

 

 

(402

)

 

 

(197

)

Payments on principal portion of finance lease liabilities

 

 

(3,124

)

 

 

(3,124

)

Extinguishment of debt

 

 

(274,582

)

 

 

(25,249

)

Extinguishment of debt costs paid

 

 

(2,736

)

 

 

 

Deferred financing costs paid for debt amendments

 

 

(2,429

)

 

 

 

Issuance of debt, net of issuance and deferred financing costs

 

 

321,552

 

 

 

95,370

 

Net cash provided by financing activities

 

 

9,360

 

 

 

30,956

 

Net increase in cash, cash equivalents and restricted cash

 

 

15,233

 

 

 

12,463

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

69,819

 

 

 

41,677

 

Cash, cash equivalents and restricted cash at end of period

 

$

85,052

 

 

$

54,140

 

 

Spot and Fixed TCE Rates Achieved and Revenue Days

The following tables provide a breakdown of TCE rates achieved for spot and fixed charters and the related revenue days for the three and nine months ended September 30, 2021 and the comparable periods of 2020. Revenue days in the quarter ended September 30, 2021 totaled 1,494 compared with 1,874 in the prior year quarter.

 

 

 

2021

 

2020

Three Months Ended September 30,

 

Spot
Earnings

 

Fixed
Earnings

 

Spot
Earnings

 

Fixed
Earnings

Jones Act Handysize Product Carriers:

 

 

 

 

 

 

 

 

 

 

 

 

Average rate

 

$

37,527

 

 

$

66,704

 

 

$

2,437

 

 

$

61,418

 

Revenue days

 

 

219

 

 

 

449

 

 

 

67

 

 

 

922

 

Non-Jones Act Handysize Product Carriers:

 

 

 

 

 

 

 

 

 

 

 

 

Average rate

 

$

43,265

 

 

$

9,083

 

 

$

32,089

 

 

$

15,778

 

Revenue days

 

 

184

 

 

 

92

 

 

 

184

 

 

 

185

 

ATBs:

 

 

 

 

 

 

 

 

 

 

 

 

Average rate

 

$

 

 

$

36,146

 

 

$

2,786

 

 

$

29,616

 

Revenue days

 

 

 

 

 

182

 

 

 

60

 

 

 

86

 

Lightering:

 

 

 

 

 

 

 

 

 

 

 

 

Average rate

 

$

60,063

 

 

$

 

 

$

79,214

 

 

$

 

Revenue days

 

 

92

 

 

 

 

 

 

94

 

 

 

 

Alaska (a):

 

 

 

 

 

 

 

 

 

 

 

 

Average rate

 

$

 

 

$

57,936

 

 

$

 

 

$

58,669

 

Revenue days

 

 

 

 

 

276

 

 

 

 

 

 

276

 

 

 

2021

 

2020

Nine Months Ended September 30,

 

Spot
Earnings

 

Fixed
Earnings

 

Spot
Earnings

 

Fixed
Earnings

Jones Act Handysize Product Carriers:

 

 

 

 

 

 

 

 

 

 

 

 

Average rate

 

$

32,380

 

 

$

65,882

 

 

$

34,806

 

 

$

60,999

 

Revenue days

 

 

548

 

 

 

1,380

 

 

 

248

 

 

 

3,061

 

Non-Jones Act Handysize Product Carriers:

 

 

 

 

 

 

 

 

 

 

 

 

Average rate

 

$

30,684

 

 

$

9,478

 

 

$

29,137

 

 

$

16,434

 

Revenue days

 

 

551

 

 

 

428

 

 

 

494

 

 

 

548

 

ATBs:

 

 

 

 

 

 

 

 

 

 

 

 

Average rate

 

$

 

 

$

33,529

 

 

$

17,244

 

 

$

27,119

 

Revenue days

 

 

 

 

 

544

 

 

 

277

 

 

 

175

 

Lightering:

 

 

 

 

 

 

 

 

 

 

 

 

Average rate

 

$

74,169

 

 

$

 

 

$

59,145

 

 

$

61,012

 

Revenue days

 

 

273

 

 

 

 

 

 

337

 

 

 

87

 

Alaska (a):

 

 

 

 

 

 

 

 

 

 

 

 

Average rate

 

$

 

 

$

58,446

 

 

$

 

 

$

58,643

 

Revenue days

 

 

 

 

 

742

 

 

 

 

 

 

605

 

 
(a) Excludes one Alaska vessel currently in layup.

Fleet Information

As of September 30, 2021, OSG’s operating fleet consisted of 24 vessels, 12 of which were owned, with the remaining vessels chartered-in. Vessels chartered-in are on Bareboat Charters.

 

 

Vessels Owned

 

Vessels
Chartered-In

 

Total at September 30, 2021

Vessel Type

 

Number

 

Number

 

Total Vessels

 

Total dwt (3)

Handysize Product Carriers (1)

 

 

5

 

 

 

11

 

 

 

16

 

 

 

760,493

 

Crude Oil Tankers (2)

 

 

3

 

 

 

1

 

 

 

4

 

 

 

772,194

 

Refined Product ATBs

 

 

2

 

 

 

 

 

 

2

 

 

 

54,182

 

Lightering ATBs

 

 

2

 

 

 

 

 

 

2

 

 

 

91,112

 

Total Operating Fleet

 

 

12

 

 

 

12

 

 

 

24

 

 

 

1,677,981

 

(1)

Includes two owned shuttle tankers, 11 chartered-in tankers, and two non-Jones Act MR tankers that participate in the U.S. Maritime Security Program, all of which are U.S. flagged, as well as one owned Marshall Island flagged non-Jones Act MR tanker trading in international markets.

(2)

Includes three crude oil tankers doing business in Alaska and one crude oil tanker bareboat chartered-in and in layup.

(3)

Total dwt is defined as aggregate deadweight tons for all vessels of that type.

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 provide 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) 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. TCE 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 follows:

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2021

 

2020

 

2021

 

2020

Time charter equivalent revenues

 

$

75,365

 

 

$

92,281

 

 

$

212,569

 

 

$

289,782

 

Add: Voyage expenses

 

 

18,602

 

 

 

13,467

 

 

 

51,030

 

 

 

31,364

 

Shipping revenues

 

$

93,967

 

 

$

105,748

 

 

$

263,599

 

 

$

321,146

 

Vessel Operating Contribution

Vessel operating contribution, a non-GAAP measure, is TCE revenues minus vessel expenses and charter hire expenses.

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

($ in thousands)

 

2021

 

2020

 

2021

 

2020

Niche market activities

 

$

16,334

 

 

$

22,091

 

 

$

47,118

 

 

$

61,513

 

Jones Act handysize tankers

 

 

(11,958

)

 

 

(4,178

)

 

 

(35,698

)

 

 

18,134

 

ATBs

 

 

4,064

 

 

 

343

 

 

 

11,402

 

 

 

3,323

 

Alaska crude oil tankers

 

 

8,113

 

 

 

8,199

 

 

 

20,213

 

 

 

18,610

 

Vessel operating contribution

 

 

16,553

 

 

 

26,455

 

 

 

43,035

 

 

 

101,580

 

Depreciation and amortization

 

 

15,526

 

 

 

15,253

 

 

 

45,913

 

 

 

43,488

 

General and administrative

 

 

5,707

 

 

 

6,140

 

 

 

18,076

 

 

 

19,915

 

Loss/(gain) on disposal of vessels and other property, including impairments, net

 

 

960

 

 

 

(151

)

 

 

6,257

 

 

 

959

 

Gain on termination of pre-existing arrangement

 

 

 

 

 

 

 

 

 

 

 

19,172

 

Operating (loss)/income

 

$

(5,640

)

 

$

5,213

 

 

$

(27,211

)

 

$

56,390

 

(B) 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 to exclude amortization classified in charter hire expenses, interest expense classified in charter hire expenses, loss/(gain) on disposal of vessels and other property, including impairments, net, non-cash stock based compensation expense and loss on repurchases and extinguishment of debt and the impact of other 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/(loss) 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 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 measures used by other companies due to differences in methods of calculation. The following table reconciles net income/(loss) as reflected in the consolidated statements of operations, to EBITDA and Adjusted EBITDA.

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

($ in thousands)

 

2021

 

2020

 

2021

 

2020

Net (loss)/income

 

$

(16,009

)

 

$

(657

)

 

$

(42,576

)

 

$

30,848

 

Income tax (benefit)/expense

 

 

(4,515

)

 

 

(192

)

 

 

(13,195

)

 

 

7,212

 

Interest expense

 

 

7,052

 

 

 

5,902

 

 

 

20,739

 

 

 

18,143

 

Depreciation and amortization

 

 

15,526

 

 

 

15,253

 

 

 

45,913

 

 

 

43,488

 

EBITDA

 

 

2,054

 

 

 

20,306

 

 

 

10,881

 

 

 

99,691

 

Amortization classified in charter hire expenses

 

 

143

 

 

 

143

 

 

 

428

 

 

 

428

 

Interest expense classified in charter hire expenses

 

 

338

 

 

 

368

 

 

 

1,024

 

 

 

1,117

 

Loss/(gain) on disposal of vessels and other property, including impairments, net

 

 

960

 

 

 

(151

)

 

 

6,257

 

 

 

959

 

Non-cash stock based compensation expense

 

 

719

 

 

 

631

 

 

 

1,988

 

 

 

1,685

 

Loss extinguishment of debt, net

 

 

7,961

 

 

 

488

 

 

 

7,961

 

 

 

503

 

Adjusted EBITDA

 

$

12,175

 

 

$

21,785

 

 

$

28,539

 

 

$

104,383

 

(C) Total Cash

($ in thousands)

 

September 30,
2021

 

December 31,
2020

Cash and cash equivalents

 

$

84,971

 

 

$

69,697

 

Restricted cash - current

 

 

37

 

 

 

49

 

Restricted cash – non-current

 

 

44

 

 

 

73

 

Total cash

 

$

85,052

 

 

$

69,819

 

Category: Earnings

Investor Relations & Media Contact:
Susan Allan, Overseas Shipholding Group, Inc.
(813) 209-0620
sallan@osg.com

Source: Overseas Shipholding Group, Inc.