GENER8 MARITIME INC NEW YORK, Nov. 14, 2016 /PRNewswire/ -- Gener8 Maritime, Inc. (NYSE: GNRT) ("Gener8 Maritime" or the "Company"), a leading U.S.-based provider of international seaborne crude oil transportation services, today announced its financial results for the three and nine months ended September 30, 2016.
Highlights
-- Recorded net income / (loss) of $(37.4) million, or $(0.45) basic and
diluted earnings per share, for the three months ended September 30,
2016, compared to $33.2 million or $0.41 basic and $0.40 diluted
earnings per share for the same period in the prior year. Recorded
adjusted net income / (loss) of $(0.7) million, or $(0.01) basic and
diluted adjusted earnings per share, for the three months ended
September 30, 2016, compared to $37.3 million or $0.46 basic and $0.45
diluted earnings per share for the same period in the prior year.
-- Increased vessel operating days by 42.0% to 3,157 in the three months
ended September 30, 2016 compared to 2,224 in the same period in the
prior year.
-- Took delivery of four "ECO" newbuilding VLCCs, the Gener8 Chiotis, the
Gener8 Macedon, the Gener8 Perseus and the Gener8 Oceanus, during the
third quarter of 2016 and the Gener8 Miltiades and Gener8 Noble
subsequent to the end of the quarter.
-- Sold the 2001-built VLCC tankers Genmar Vision and Genmar Victory for
gross proceeds of $28.0 million and $29.0 million, respectively, and
prepaid $38.8 million of debt associated with the two vessels.
"In the third quarter, we continued our fleet renewal program with the sale of two 2001-built VLCCs. At the same time, we expanded our fleet with the delivery of four "ECO" VLCCs in the third quarter and two more in the fourth quarter," said Peter Georgiopoulos, Chairman and Chief Executive Officer of Gener8 Maritime. "Following the completion of our newbuilding program expected early next year, the DWT-weighted average age of our fleet will be 5.9 years, and our VLCCs will have an average age of just 3.1 years, giving us the youngest and most modern VLCC fleet among our public company peers. One of the key advantages of our "ECO" design vessels is increased fuel efficiency, which was a positive driver of the TCE rates we achieved in the third quarter in a relatively weak rate environment. We believe this advantage will become more pronounced once the International Maritime Organization ("IMO") mandate to reduce sulphur content of marine fuel by approximately 85% goes into effect. This mandate - a landmark decision for the protection of our environment - could result in a doubling of the price of marine fuel and will have a dramatic effect on the shipping industry. Under the IMO mandate, the expected cost savings attributable to our fuel-efficient vessels is expected to increase, furthering our competitive position in the market and increasing the premium charter rate for "ECO" VLCCs."
Leo Vrondissis, Chief Financial Officer, added, "Following the delivery of the Gener8 Noble on November 7, 2016, 17 of the 21 "ECO" VLCCs from our newbuilding program have been delivered. Coincident with these deliveries, our daily direct operating expenses have declined for four consecutive quarters, highlighting one of the benefits of operating a young, modern fleet that requires less maintenance and repairs. Additionally, in conjunction with the sales of the Genmar Vision and Genmar Victory we prepaid $38.8 million of debt in the third quarter, which will have a positive effect on our interest expense going forward."
Fleet Performance
The average TCE rates earned by Gener8 Maritime's vessels are detailed below:
Gener8 Maritime Average Daily TCE Rates(1)
-----------------------------------------
Three Months Ended
------------------
Sep-16 Sep-15
------ ------
VLCC
Average Spot TCE Rate $27,493 $55,847
Average Time Charter TC Rate N/A $36,154
SUEZMAX
Average Spot TCE Rate $18,281 $32,497
Average Time Charter TC Rate N/A $18,983
AFRAMAX
Average Spot TCE Rate $12,549 $25,742
Average Time Charter TC Rate N/A N/A
PANAMAX
Average Spot TCE Rate $11,259 $17,386
Average Time Charter TC Rate N/A N/A
HANDYMAX
Average Spot TCE Rate N/A $15,647
Average Time Charter TC Rate N/A N/A
FULL FLEET
Average Spot TCE Rate $21,887 $35,609
Average Time Charter TC Rate N/A $33,582
FULL FLEET TCE Rate $21,887 $35,422
(1) Time Charter
Equivalent, or "TCE," is a measure
of the average daily revenue
performance of a vessel. The
Company calculates TCE by dividing
net voyage revenue by total
operating days for its fleet. Net
voyage revenues are voyage
revenues minus voyage expenses.
The Company evaluates its
performance using net voyage
revenues. The Company believes
that presenting voyage revenues,
net of voyage expenses,
neutralizes the variability
created by unique costs associated
with particular voyages or
deployment of vessels on time
charter or on the spot market and
presents a more accurate
representation of the revenues
generated by its vessels. Please
refer to the tables at the end of
this release for a reconciliation
of TCE and net voyage revenues to
voyage revenues. Spot TCEs
include all spot voyages for the
Company's vessels, including those
that were in Navig8 pools.
Summary Results for the Three Months Ended September 30, 2016
The Company's net income / (loss) for the three months ended September 30, 2016 was $(37.4) million, or $(0.45) basic and diluted earnings per share, compared to net income of $33.2 million, or $0.41 basic and $0.40 diluted earnings per share, for the same period in the prior year.
The Company recorded adjusted net income / (loss) of $(0.7) million, or $(0.01) basic and diluted adjusted earnings per share, for the three months ended September 30, 2016, compared to adjusted net income of $37.3 million, or $0.46 basic and $0.45 diluted adjusted earnings per share, for the same period in the prior year. Please refer to the tables at the end of this release for a reconciliation of adjusted net income to net income.
Adjusted EBITDA for the three months ended September 30, 2016 decreased by $13.4 million to $34.9 million compared to $48.3 million for the same period in the prior year. Please refer to the tables at the end of this release for a reconciliation of adjusted EBITDA to net income.
The average daily spot TCE rates obtained by the Company's VLCC fleet, including its vessels that were within Navig8 pools, was $27,493 for the three months ended September 30, 2016, a decrease of $28,354, or 50.8%, from the same period in the prior year. During the three months ended September 30, 2016, the Company's "ECO" VLCC fleet earned an average daily TCE of $28,471, and the Company's non-"ECO" VLCC fleet earned an average daily TCE of $25,199. The average daily TCE rate obtained by the Company on a full-fleet basis decreased by $13,535, or 38.2%, to $21,887 for the three months ended September 30, 2016 compared to $35,422 for the prior year period.
Net Voyage Revenues
Voyage revenues decreased by $17.0 million, or 19.1%, to $72.3 million for the three months ended September 30, 2016, compared to $89.3 million for the prior year period. Voyage expenses decreased by $7.3 million, or 70.0%, to $3.2 million for the three months ended September 30, 2016 compared to $10.5 million for the prior year period.
The majority of the vessels in our fleet were deployed in pools managed by Navig8 Group as of September 30, 2016. Revenues from these pools are distributed on a net basis after deduction of voyage expenses, which are the responsibility of the pools, and certain administrative expenses. This reduces voyage revenues compared to spot charter revenues. As of September 30, 2016, we had 35 owned vessels in the Navig8 pools, which includes four additional newbuilding vessels that were deployed into the Navig8 pools during the three months ended September 30, 2016.
Our Navig8 pool revenues increased by $9.5 million, or 17.0%, to $65.5 million for the three months ended September 30, 2016, compared to $56.0 million during the prior year period. This increase was primarily the result of an increase in our vessel operating days in Navig8 pools of 1,476 days, to 2,944 days for the three months ended September 30, 2016 compared to 1,468 days during the prior year period. The increase in vessel operating days resulted in an increase in Navig8 pool revenues of approximately $32.9 million during the three months ended September 30, 2016 compared to the prior year period. The increase in Navig8 Pool revenues was partially offset by a decline in our average daily Navig8 pool charter hire rates, which decreased by $15,910, or 41.7%, to $22,255 for the three months ended September 30, 2016 compared to $38,165 for the prior year period. In this press release, we use charter hire rates as a measure of the average daily revenue performance of a vessel on a per voyage basis determined by dividing voyage revenue by total operating days for the applicable fleet. The decline in our average daily Navig8 pool charter hire rates resulted in a decrease in Navig8 pool revenues of approximately $23.3 million for the three months ended September 30, 2016 compared to the prior year period.
The decreases in our time charter and spot charter revenues of $6.9 million and $19.7 million, to $0 million and $6.7 million, respectively, for the three months ended September 30, 2016, compared to $6.9 million and $26.4 million, respectively, for the prior year period, were primarily the result of the recent sales of the Genmar Victory and Genmar Vision and the transition of our vessels into the Navig8 pools. Contributing to the decrease in spot charter revenues was a decline in our average daily spot charter hire rates, which decreased by $16,241, or 34.0%, to $31,596 for the three months ended September 30, 2016, compared to $47,837 for the prior year period. In addition, the $7.3 million decrease in our voyage expenses to $3.2 million for the three months ended September 30, 2016, compared to $10.5 million for the prior year period, was primarily the result of the transition of our vessels from the spot market into the Navig8 pools.
Net voyage revenues decreased by $9.7 million, or 12.3%, to $69.1 million for the three months ended September 30, 2016 compared to $78.8 million for the prior year period. The decrease in net voyage revenues was primarily attributable to lower average daily TCE rates achieved in the current period. The decrease in net voyage revenue was partially offset by an increase in our vessel operating days following the delivery of additional VLCC newbuildings during the three months ended September 30, 2016.
Direct Vessel Operating Expenses
Direct vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs for owned vessels, increased by $6.5 million, or 31.4%, to $27.0 million for the three months ended September 30, 2016 compared to $20.5 million for the prior year period.
The increase in direct vessel operating expenses in the current period was primarily related to the increase in our fleet size and partially offset by decreases in daily direct vessel operating expenses per vessel of $222, or 2.6%, to $8,322 per day for the three months ended September 30, 2016 compared to $8,544 per day for the prior year period, primarily as a result of lower operating costs, including crew costs, insurance and other costs, associated with our newly delivered vessels.
General and Administrative Expenses
General and administrative expenses decreased by $1.1 million, or 13.1%, to $7.1 million for the three months ended September 30, 2016, compared to $8.2 million in the prior year period. The decrease was primarily the result of a decrease in legal and professional expenses of $1.3 million, or 47.0% to $1.5 million, compared to $2.8 million in the prior year period. This decrease was partially offset by non-employee directors compensation of $0.3 million recorded during the three months ended September 30, 2016 that did not occur in the prior year period.
Depreciation and Amortization
Depreciation and amortization, which includes depreciation of vessels as well as amortization of drydock and special survey costs, increased by $11.5 million, or 99.3%, to $23.1 million for the three months ended September 30, 2016 compared to $11.6 million for the prior year period. Vessel depreciation increased by $10.7 million, or 106.8%, to $20.8 million for the three months ended September 30, 2016 compared to the prior year period, while amortization of drydocking costs increased by $0.8 million, or 63.6%, to $2.0 million during the three months ended September 30, 2016 compared to the prior year period. The increase in vessel depreciation and amortization of drydocking costs was primarily due to the increase in our fleet size and the additional drydocking costs incurred during the three months ended September 30, 2016 compared to the prior year period.
Goodwill Impairment
For the three months ended September 30, 2016, we recorded a goodwill impairment of $26.3 million, including $3.0 million of related goodwill in connection with the sales of the Genmar Victory and Genmar Vision.
Loss on Vessel Disposal, Net
During the three months ended September 30, 2016, we incurred losses associated with the disposal of vessels and certain vessel equipment of $10.8 million, primarily related to the sale of the Genmar Victory and the Genmar Vision.
Interest Expense, net
Interest expense, net increased by $13.5 million to $13.7 million for the three months ended September 30, 2016 compared to $0.2 million for the prior year period. The increase was primarily attributable to the decrease in capitalized interest of $5.8 million, or 46.4%, to $6.7 million compared to $12.5 million for the prior year period, related to the funding of the acquisition of our VLCC newbuildings. Capitalized interest results in a reduction of interest expense, net. We do not capitalize interest expense associated with the funding of our VLCC newbuildings after delivery of the vessels. Contributing to the increase in interest expense, net during the three months ended September 30, 2016, was an increase in interest expense associated with our credit facilities and senior notes of $3.0 million, or 42.6%, to $10.1 million compared to $7.1 million for the prior year period due to an increase in outstanding borrowings. In addition, during the three months ended September 30, 2016, we recorded $1.4 million related to interest rate swaps settlements as interest expense, net. Also contributing to the increase in interest expense, net were increases in amortization of deferred financing costs of $2.4 million and in commitment fees of $0.4 million for the three months ended September 30, 2016 compared to the prior year period. We incurred these additional deferred financing costs and commitment fees in connection with our entry into a refinancing credit facility that refinanced our former senior secured credit facilities, and the Amended Sinosure Credit Facility and the Korean Export Credit Facility, which we have used to fund a portion of the remaining installment payments due under our VLCC Newbuildings contracts.
Other (expense) income, net.
During the three months ended September 30, 2016, the Company's interest rate swap agreements were highly effective; hedge ineffectiveness of $1.5 million which was recognized in earnings as other (expense) income, net during the three months ended June 30, 2016, was reversed due to increases in interest rates during the three months ended September 30, 2016.
Subsequent events
On October 25, 2016, the Company took delivery of the Gener8 Miltiades, a 2016-built VLCC newbuilding. Upon delivery, the Gener8 Miltiades entered into the VL8 Pool. As of October 25, 2016, the Company borrowed approximately $53.3 million under the Amended Sinosure Credit Facility to fund the delivery of the Gener8 Miltiades. The Company has made all shipyard installment payments and there is no outstanding payable balance in respect of the Gener8 Miltiades.
On November 7, 2016, the Company took delivery of the Gener8 Noble, a 2016-built VLCC newbuilding. Upon delivery, the Gener8 Noble entered into the VL8 Pool. As of November 7, 2016, the Company borrowed approximately $52.5 million under the Korean Export Credit Facility to fund the delivery of the Gener8 Noble. The Company has made all shipyard installment payments and there is no outstanding payable balance in respect of the Gener8 Noble.
Gener8 Maritime Fleet Profile (as of November 14, 2016)
Vessels on the Water
--------------------
Type Vessel Name DWT Year Built Employment
---- ----------- --- ---------- ----------
1 VLCC Gener8 Noble 298,991 2016 VL8 Pool
2 VLCC Gener8 Miltiades 301,038 2016 VL8 Pool
3 VLCC Gener8 Oceanus 299,011 2016 VL8 Pool
4 VLCC Gener8 Perseus 299,392 2016 VL8 Pool
5 VLCC Gener8 Macedon 298,991 2016 VL8 Pool
6 VLCC Gener8 Chiotis 300,973 2016 VL8 Pool
7 VLCC Gener8 Constantine 299,011 2016 VL8 Pool
8 VLCC Gener8 Andriotis 301,014 2016 VL8 Pool
9 VLCC Gener8 Apollo 301,417 2016 VL8 Pool
10 VLCC Gener8 Ares 301,587 2016 VL8 Pool
11 VLCC Gener8 Hera 301,619 2016 VL8 Pool
12 VLCC Gener8 Nautilus 298,991 2016 VL8 Pool
13 VLCC Gener8 Success 300,932 2016 VL8 Pool
14 VLCC Gener8 Supreme 300,933 2016 VL8 Pool
15 VLCC Gener8 Athena 299,999 2015 VL8 Pool
16 VLCC Gener8 Strength 300,960 2015 VL8 Pool
17 VLCC Gener8 Neptune 299,999 2015 VL8 Pool
18 VLCC Genmar Zeus 318,325 2010 VL8 Pool
19 VLCC Gener8 Atlas 306,005 2007 VL8 Pool
20 VLCC Gener8 Hercules 306,543 2007 VL8 Pool
21 VLCC Gener8 Ulysses 318,695 2003 VL8 Pool
22 VLCC Gener8 Poseidon 305,795 2002 VL8 Pool
23 Suezmax Gener8 Spartiate 164,925 2011 Suez8 Pool
24 Suezmax Gener8 Maniate 164,715 2010 Suez8 Pool
25 Suezmax Gener8 Argus 159,999 2000 Suez8 Pool
26 Suezmax Gener8 Spyridon 159,999 2000 Suez8 Pool
27 Suezmax Gener8 Orion 159,992 2002 Suez8 Pool
28 Suezmax Gener8 Horn 159,475 1999 Suez8 Pool
29 Suezmax Gener8 Phoenix 153,015 1999 Suez8 Pool
30 Suezmax Gener8 Harriet G 150,296 2006 Suez8 Pool
31 Suezmax Gener8 Kara G 150,296 2007 Suez8 Pool
32 Suezmax Gener8 St. Nikolas 149,876 2008 Suez8 Pool
33 Suezmax Gener8 George T 149,847 2007 Suez8 Pool
34 Aframax Gener8 Daphne 106,560 2002 V8 Pool
35 Aframax Gener8 Elektra 106,560 2002 V8 Pool
36 Aframax Gener8 Pericles 105,674 2003 V8 Pool
37 Aframax Gener8 Defiance 105,538 2002 V8 Pool
38 Panamax Gener8 Companion 72,749 2004 Spot
39 Panamax Genmar Compatriot 72,749 2004 Spot
Vessels on the Water Total 8,952,486
Newbuildings
------------
Type Vessel Name DWT Yard Delivery Date
---- ----------- --- ---- -------------
1 VLCC Gener8 Theseus 300,000 HHI Nov-16
2 VLCC Gener8 Hector 300,000 HAN Jan-17
3 VLCC Gener8 Ethos 300,000 HHI Feb-17
4 VLCC Gener8 Nestor 300,000 HAN Mar-17
Newbuildings Total 1,200,000
Financial Information
Consolidated Statements of Operations for the Three and Nine Months ended September 30, 2016 and 2015
For the Three Months For the Nine Months
(Dollars in thousands, except per share data) Ended September 30, Ended September 30,
------------------- -------------------
2016 2015 2016 2015
---- ---- ---- ----
VOYAGE REVENUES:
Navig8 pool revenues $65,529 $56,001 $270,960 $60,213
Time charter revenues - 6,932 9,278 21,648
Spot charter revenues 6,730 26,358 22,023 245,312
Total voyage revenues 72,259 89,291 302,261 327,173
Voyage expenses 3,159 10,527 9,710 93,203
Net voyage revenues 69,100 78,764 292,551 233,970
OPERATING EXPENSES:
Direct vessel operating expenses 26,980 20,539 77,041 62,583
Navig8 charterhire expenses 19 4,688 3,240 7,287
General and administrative 7,128 8,200 22,240 28,144
Depreciation and amortization 23,118 11,600 60,622 33,610
Goodwill impairment 26,291 - 26,291 -
Loss on disposal of vessels, net 10,756 101 10,177 248
Closing of Portugal office - 146 - 507
--- --- --- ---
Total operating expenses 94,292 45,274 199,611 132,379
OPERATING (LOSS) INCOME $(25,192) $33,490 $92,940 $101,591
OTHER EXPENSES:
Interest expense, net (13,699) (193) (31,355) (11,133)
Other financing costs (2) - (8) (6,040)
Other income (expense), net 1,542 (69) (75) (370)
----- --- --- ----
Total other expenses (12,159) (262) (31,438) (17,543)
NET (LOSS) INCOME $(37,351) $33,228 $61,502 $84,048
======== ======= ======= =======
(LOSS) INCOME PER COMMON SHARE
Basic $(0.45) $0.41 $0.74 $1.50
====== ===== ===== =====
Diluted $(0.45) $0.40 $0.74 $1.49
====== ===== ===== =====
Selected Balance Sheet Data
September 30, December 31,
BALANCE SHEET DATA, at
end of period 2016 2015
---- ----
(Dollars in thousands)
Cash & cash
equivalents $100,046 $157,535
Current
assets,
including
cash 162,391 258,128
Total assets 2,841,076 2,389,746
Current
liabilities,
incl.
current
portion of
LTD 216,829 268,615
Current
portion of
LTD 171,983 135,367
Total LTD, incl.
current portion, excl.
discount 1,447,731 957,054
and deferred financing costs(1)
Shareholders' equity 1,405,522 1,347,761
(1) Please refer to the tables at the end of this release for a reconciliation to
total long-term debt
Reconciliation Tables
EBITDA represents net income (loss) plus net interest expense and depreciation and amortization. Adjusted EBITDA represents EBITDA adjusted to exclude the items set forth in the table below, which represent certain non-cash, one-time and other items that the Company's believes are not indicative of the ongoing performance of its core operations. Adjusted Net Income represents Net Income adjusted to exclude the same non-cash, one-time and other items, as well as commitment fees. EBITDA, Adjusted EBITDA and Adjusted Net Income are included in this presentation because they are used by management and certain investors as measures of operating performance. EBITDA, Adjusted EBITDA and Adjusted Net Income are used by analysts in the shipping industry as common performance measures to compare results across peers. EBITDA, Adjusted EBITDA and Adjusted Net Income are not items recognized by accounting principles generally accepted in the United States of America ("GAAP"), and should not be considered in isolation or used as alternatives to net income, operating income, cash flow from operating activity or any other indicator of the Company's operating performance or liquidity required by GAAP. The Company's presentation of EBITDA, Adjusted EBITDA and Adjusted Net Income is intended to supplement investors' understanding of its operating performance by providing information regarding its ongoing performance that exclude items the Company believes do not directly affect its core operations and enhancing the comparability of its ongoing performance across periods. The Company presents Adjusted EBITDA and Adjusted Net Income in addition to EBITDA and Net Income because Adjusted EBITDA and Adjusted Net Income eliminate the impact of additional non-cash, one-time and other items not associated with the ongoing performance of its core operations, including charges associated with stock-based compensation, gains and losses on the sale of vessels and costs associated with its financing activities, that the Company believes further reduce the comparability of the ongoing performance of its core operations across periods. The Company's management considers EBITDA, Adjusted EBITDA and Adjusted Net Income to be useful to investors because such performance measures provide information regarding the profitability of its core operations and facilitate comparison of its operating performance to the operating performance of the Company's peers. Additionally, the Company's management uses EBITDA, Adjusted EBITDA and Adjusted Net Income as performance measures and they are also presented for review at the Company's board meetings. While the Company believes these measures are useful to investors, the definitions of EBITDA, Adjusted EBITDA and Adjusted Net Income used here may not be comparable to similar measures used by other companies. In addition, these definitions are also not the same as the definition of EBITDA, Adjusted EBITDA and Adjusted Net Income used in the financial covenants in the Company's debt instruments. During the three months ended September 30, 2016, the Company excluded from Adjusted EBITDA and Adjusted Net Income Goodwill impairment because these are non-cash expenses that the Company does not believe reflect the ongoing performance of its core operations across periods. In addition, during the three months ended September 30, 2016, the Company excluded from Adjusted EBITDA and Adjusted Net Income Non-cash G&A expenses, excluding stock-based compensation expense, to conform its presentation to the Adjusted EBITDA presentation in the Company's 2015 Annual Report on Form 10-K.
Please see below for a reconciliation of the following adjusted amounts to Net Income (dollars in thousands)
Reconciliation Tables
---------------------
Please see below for a reconciliation of the following adjusted amounts to Net Income
Three Months Ended Nine Months Ended
------------------ -----------------
Sep-16 Sep-15 Sep-16 Sep-15
------ ------ ------ ------
Net (Loss) Income $(37,351) $33,228 $61,502 $84,048
+ Goodwill Impairment 26,291 - 26,291 -
+ Stock-based compensation expense 1,444 1,543 4,299 11,608
+ Loss on disposal of vessels, net 10,756 101 10,177 248
+ Closing of Portugal office - 146 - 507
+ Other financing costs 2 - 8 6,040
+ Non-recurring professional fees related to interest rate swaps - - 327 -
+ Commitment Fees 1,235 808 4,547 808
+ Impact of interest rate swaps fair value (1,560) - - -
+ Non-cash G&A expenses, excluding stock-based compensation (1) (1,504) 1,522 (2,389) 3,408
Net (Loss) Income, adjusted $(687) $37,348 $104,762 $106,667
Weighted average shares outstanding, basic, in thousands 82,682 81,758 82,681 56,207
Weighted average shares outstanding, diluted, in thousands 82,682 82,480 82,681 56,448
Basic net (loss) income per share, adjusted $(0.01) $0.46 $1.27 $1.90
Diluted net (loss) income per share, adjusted $(0.01) $0.45 $1.27 $1.89
Three Months Ended Nine Months Ended
------------------ -----------------
Sep-16 Sep-15 Sep-16 Sep-15
------ ------ ------ ------
Net (Loss) Income $(37,351) $33,228 $61,502 $84,048
+ Interest expense, net 13,699 193 31,355 11,133
+ Depreciation and amortization 23,118 11,600 60,622 33,610
------ ------ ------ ------
EBITDA $(534) $45,021 $153,479 $128,791
+ Goodwill Impairment 26,291 - 26,291
+ Stock-based compensation expense 1,444 1,543 4,299 11,608
+ Loss on disposal of vessels, net 10,756 101 10,177 248
+ Closing of Portugal office - 146 - 507
+ Other financing costs 2 - 8 6,040
+ Non-recurring professional fees related to interest rate swaps - - 327 -
+ Impact of interest rate swaps fair value (1,560) - - -
+ Non-cash G&A expenses, excluding stock-based compensation (1) (1,504) 1,522 (2,389) 3,408
EBITDA, adjusted $34,895 $48,333 $192,192 $150,602
(1) Non-cash G&A expenses, excluding stock-based compensation expense, include accounts receivable reserves, amortization of lease assets that were recorded in connection with fresh start accounting and amortization of straight line rent expense. The presentation
of prior year amounts have been conformed to the current year presentation.
Long-term debt reconciliation table
Please see below for a reconciliation of the following adjusted amounts to long-term debt (dollars in thousands)
Reconciliation of
total long-term
debt September 30, December 31,
2016 2015
---- ----
Long-term
debt $1,275,748 $821,687
Current
portion
of long-
term debt 171,983 135,367
Total long-term
debt, incl. current
portion, $1,447,731 $957,054
excl. discount and
deferred financing
costs
Net Voyage Revenue & Operating Days Reconciliation Tables
Gener8 Maritime Net Voyage Revenue & Operating Days
---------------------------------------------------
(Dollars in thousands, except Operating Days data) Three Months Ended
------------------
Sep-16 Sep-15
------ ------
VLCC
ECO Fleet Net Voyage Revenue $32,007
ECO Fleet Operating Days 1,124
Non-ECO Fleet Net Voyage Revenue $12,078
Non-ECO Fleet Operating Days 479
---------------------------- ---
Spot Charter & Navig8 Pool Net Voyage Revenues $44,085 $31,150
Spot Charter & Navig8 Pool Operating Days 1,603 558
Time Charter Revenue $ - $6,291
Time Charter Operating Days - 174
SUEZMAX
Spot Charter & Navig8 Pool Net Voyage Revenues $18,414 $26,875
Spot Charter & Navig8 Pool Operating Days 1,007 826
Time Charter Revenue $ - $582
Time Charter Operating Days - 31
AFRAMAX
Spot Charter & Navig8 Pool Net Voyage Revenues $4,545 $9,245
Spot Charter & Navig8 Pool Operating Days 362 360
PANAMAX
Spot Charter Revenue $2,072 $3,182
Spot Operating Days 184 183
HANDYMAX
Spot Charter Revenue $(16) $1,439
Spot Operating Days - 92
Gener8 Maritime Full Fleet Net Voyage Revenues
----------------------------------------------
(Dollars in thousands) Three Months Ended
------------------
Sep-16 Sep-15
------ ------
Total Voyage Revenues $72,259 $89,291
Total Voyage Expenses 3,159 10,527
-----
Total Net Voyage Revenues $69,100 $78,764
Conference Call Information
A conference call to discuss the results will be held today, November 14, 2016 at 8:00 a.m. ET. The conference call can be accessed live by dialing 1-844-802-2435, or for international callers, 1-412-317-5128, and requesting to be joined into the Gener8 Maritime call. A replay will be available at 11:00 a.m. ET and can be accessed by dialing 1-877-344-7529 or for international callers, 1-412-317-0088. The pass code for the replay is 10096336. The replay will be available until November 24, 2016.
A live webcast of the conference call will also be available under the Investor Relations section at www.gener8maritime.com. The Company plans to place additional materials related to the earnings announcement, including a slide presentation, on its website prior to the conference call.
About Gener8 Maritime
As of November 14, 2016, Gener8 Maritime has a fleet of 43 wholly-owned vessels comprised of 26 VLCCs, including four newbuildings, 11 Suezmaxes, four Aframaxes, and two Panamax tankers. On a fully-delivered basis, Gener8 Maritime's fleet has a total carrying capacity of approximately 10.2 million deadweight tons ("DWT") and an average age of less than 6 years on a DWT basis. Gener8 Maritime is incorporated under the laws of the Marshall Islands and headquartered in New York.
Website Information
The Company intends to use its website, www.gener8maritime.com, as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Such disclosures will be included in its website's Investor Relations section. Accordingly, investors should monitor the Investor Relations portion of the Company's website, in addition to following its press releases, filings with the Securities and Exchange Commission (the "SEC"), public conference calls, and webcasts. To subscribe to the Company's e-mail alert service, please click the "Investor Alerts" link in the Investors section of the Company's website and submit your email address. The information contained in, or that may be accessed through, the Company's website is not incorporated by reference into or a part of this document or any other report or document the Company files with or furnish to the SEC, and any references to the Company's website are intended to be inactive textual references only.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements, made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not historical facts and are based on management's current beliefs, expectations, estimates and projections about future events, many of which, by their nature, are inherently uncertain and beyond the Company's control. Included among the factors that, in the Company's view, could cause actual results to differ materially from the forward looking statements contained in this press release are the following: (i) loss or reduction in business from the significant customers of the Company's or of the commercial pools in which the Company participates; (ii) changes in the values of the Company's vessels, newbuildings or other assets; (iii) the failure of the Company's significant customers, shipyards, pool managers or technical managers to perform their obligations owed to the Company; (iv) the loss or material downtime of significant vendors and service providers; (v) the Company's failure, or the failure of the commercial managers of any pools in which the Company's vessels participate, to successfully implement a profitable chartering strategy; (vi) termination or change in the nature of the Company's relationship with any of the commercial pools in which it participates; (vii) changes in demand for the Company's services; (viii) a material decline or prolonged weakness in rates in the tanker market; (ix) changes in production of or demand for oil and petroleum products, generally or in particular regions; (x) greater than anticipated levels of tanker newbuilding orders or lower than anticipated rates of tanker scrapping; (xi) adverse weather and natural disasters, acts of piracy, terrorist attacks and international hostilities and instability; (xii) changes in rules and regulations applicable to the tanker industry, including, without limitation, legislation adopted by international organizations such as the International Maritime Organization and the European Union or by individual countries; (xiii) actions taken by regulatory authorities; (xiv) actions by the courts, the U.S. Coast Guard, the U.S. Department of Justice or other governmental authorities and the results of the legal proceedings to which the Company or any of its vessels may be subject; (xv) changes in trading patterns significantly impacting overall tanker tonnage requirements; (xvi) any non-compliance with the U.S. Foreign Corrupt Practices Act of 1977 or other applicable regulations relating to bribery; (xvii) the highly cyclical nature of the oil-shipping industry; (xviii) changes in the typical seasonal variations in tanker charter rates; (xix) changes in the cost of other modes of oil transportation; (xx) changes in oil transportation technology; (xxi) increases in costs including without limitation: crew wages, insurance, provisions, repairs and maintenance; (xxii) changes in general political conditions; (xxiii) the adequacy of insurance to cover the Company's losses, including in connection with maritime accidents or spill events; (xxiv) changes in the condition of the Company's vessels or applicable maintenance or regulatory standards (which may affect, among other things, the Company's anticipated drydocking or maintenance and repair costs); (xxv) changes in the itineraries of the Company's vessels; (xxvi) adverse changes in foreign currency exchange rates affecting the Company's expenses; (xxvii) the fulfillment of the closing conditions under, or the execution of customary additional documentation for, the Company's agreements to acquire vessels and borrow under its existing financing arrangements; (xxviii) the effect of the Company's indebtedness on its ability to finance operations, pursue desirable business operations and successfully run its business in the future; (xxix) financial market conditions; (xxx) sourcing, completion and funding of financing on acceptable terms; (xxxi) the Company's ability to generate sufficient cash to service its indebtedness and comply with the covenants and conditions under the Company's debt obligations; (xxxii) the impact of electing to take advantage of certain exemptions applicable to emerging growth companies; and (xxxiii) other factors listed from time to time in the Company's filings with SEC, including, without limitation, the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and its subsequent reports on Form 10-Q and Form 8-K. Accordingly the reader is cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
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SOURCE Gener8 Maritime, Inc.
