OSG - Overseas Shipholding Group Inc.
04/07/2021 | Press release | Distributed by Public on 04/07/2021 05:31
Current Report (SEC Filing - 8-K)
Exhibit 99.1
OVERSEAS SHIPHOLDING GROUP REPORTS
FOURTH QUARTER AND FULL YEAR 2020 RESULTS
Tampa, FL - April 7, 2021 - Overseas Shipholding Group, Inc. (NYSE: OSG) (the 'Company' or 'OSG'), a provider of energy transportation services for crude oil and petroleum products in the U.S. Flag markets, today reported results for the fourth quarter and full year 2020.
Highlights
| ● | Net income for the full year 2020 was $30.0 million, or $0.33 per diluted share, compared with $8.7 million, or $0.10 per diluted share for the full year 2019. | |
| ● | Net loss for the fourth quarter was $844 thousand, or $(0.01) per diluted share, compared with net income of $11.0 million, or $0.12 per diluted share, for the fourth quarter 2019. | |
| ● | Shipping revenues for the fourth quarter 2020 were $97.5 million, down 0.9% compared with the fourth quarter 2019. Shipping revenues for the full year 2020 were $418.7 million, up 17.8% compared with the full year 2019. | |
| ● | Time charter equivalent (TCE) revenues(A), a non-GAAP measure, for the fourth quarter 2020 were $86.1 million, down 8.2% compared with the fourth quarter 2019. TCE revenues for the full year 2020 were $375.9 million, up 12.2%, compared with the full year 2019. | |
| ● | Fourth quarter 2020 Adjusted EBITDA(B), a non-GAAP measure, was $20.5 million, down 39.1% from $33.7 million in the same period in 2019. Full year Adjusted EBITDA was $124.9 million, up 36.3%, from $91.6 million in the same period in 2019. | |
| ● | Total cash(C) was $69.8 million as of December 31, 2020. | |
| ● | In November 2020, the Company closed on a $49.2 million loan for a term of 7 years. OSG's subsidiaries, OSG 205 LLC and OSG Courageous II LLC, obtained the loan to finance one new 204,000 barrel U.S. Flag oil and chemical ATB barge, the OSG 205, and to refinance the tug to which the barge is paired, the OSG Courageous. In December 2020, the Company took delivery of the barge. The ATB unit is operating in the Jones Act trade and has entered into a one-year time charter. |
Sam Norton, President and CEO, stated, 'The full year 2020 financial results reported today met our expectations and gave us confidence in realizing the full potential of OSG's diverse mix of business assets. To have realized these results in the midst of a global pandemic is largely the work of OSG professionals whose dedication and commitment to a safe and virus free environment has enabled us to provide operational readiness of our vessels throughout the past year. The continuing effects of the pandemic will present more pronounced financial pressures in the short run, the result of an expiring book of time charters coming off at a time when global petroleum fuels demand remains muted. However, we consider the prospects for a vaccine enabled recovery in the second half of this year to be strong, and look forward to a resumption of the positive market trends witnessed in recent years.'
As reported by the Company in its Form 12b-25 filing made on March 17, 2021, due to the prolonged depressed market conditions that exist as a result of the COVID-19 pandemic's direct impact on our business, we sought and obtained modifications to certain of our financial covenants in our vessel financing facilities.
A, B, CReconciliations of these non-GAAP financial measures are included in the financial tables attached to this press release starting on Page 8.
Fourth Quarter 2020 Results
Shipping revenues were $97.5 million for the quarter, down 0.9% compared with the fourth quarter of 2019. TCE revenues for the fourth quarter of 2020 were $86.1 million, a decrease of $7.7 million, or 8.2%, compared with the fourth quarter of 2019, primarily due to (a) two fewer ATBs in our fleet, (b) a 74-day increase in scheduled drydocking, (c) a decrease in Delaware Bay lightering volumes and (d) a 232-day increase in lay-up days primarily due to two vessels placed in lay-up, a decision taken in light of the lack of demand due to COVID-19 economic impact. The decrease was offset by the addition to our fleet of three crude oil tankers, Alaskan Explorer, Alaskan Legend and Alaskan Navigator, which were purchased in March 2020, and two ATBs, OSG 204 and OSG Endurance and OSG 205 and OSG Courageous, which were delivered at the end of May 2020 and beginning of December 2020, respectively.
Operating income for the fourth quarter of 2020 was $2.2 million compared to operating income of $18.7 million in the fourth quarter of 2019.
Net loss for the fourth quarter was $844 thousand, or $(0.01) per diluted share, compared with net income of $11.0 million, or $0.12 per diluted share, for the fourth quarter 2019.
Adjusted EBITDA was $20.5 million for the quarter, a decrease of $13.2 million compared with the fourth quarter of 2019, driven primarily by the decrease in TCE revenues.
Full Year 2020 Results
Shipping revenues were $418.7 million for the full year 2020, up 17.8% compared with the full year 2019. TCE revenues for the full year 2020 were $375.9 million, an increase of $40.7 million, or 12.2%, compared with the full year 2019. The increase in shipping revenues and TCE revenues was primarily due to the addition to our fleet of two Marshall Islands flagged MR tankers, Overseas Gulf Coast and Overseas Sun Coast, which entered service during the fourth quarter of 2019, three crude oil tankers, Alaskan Explorer, Alaskan Legend and Alaskan Navigator, which were purchased in March 2020, and two ATBs, OSG 204 and OSG Endurance and OSG 205 and OSG Courageous, which were delivered at the end of May 2020 and beginning of December 2020, respectively. The increase was offset by (a) two fewer ATBs in our fleet, (b) a 322-day increase in scheduled drydocking, (c) a decrease in Delaware Bay lightering volumes and (d) a 160-day increase in lay-up days primarily due to one vessel that was redelivered from time charter during the third quarter of 2020 and placed in lay-up, a decision taken in light of the lack of demand due to COVID-19 economic impact.
Operating income for the full year 2020 was $58.6 million compared to operating income of $33.4 million for the full year 2019.
Net income for the full year 2020 was $33.0 million, or $0.33 per diluted share, compared with net income of $8.7 million, or $0.10 per diluted share, for the full year 2019.
Adjusted EBITDA was $124.9 million for the full year 2020, an increase of $33.3 million compared with the full year 2019.
Conference Call
The Company will host a conference call to discuss its fourth quarter and full year 2020 results at 9:30 a.m. Eastern Time ('ET') on Wednesday, April 7, 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 11:30 a.m. ET on Wednesday, April 7, 2021 through 10:59 p.m. ET on Wednesday, April 21, 2021 by dialing (877) 344-7529 for domestic callers and (412) 317-0088 for international callers, and entering Access Code 10153746.
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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 ATB, 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 two Marshall Islands flagged MR tankers which trade 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 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.
Investor Relations & Media Contact:
Susan Allan, Overseas Shipholding Group, Inc.
(813) 209-0620
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Consolidated Statements of Operations
($ in thousands, except per share amounts)
|
Three Months Ended December 31, |
Years Ended December 31, |
|||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Shipping Revenues: | ||||||||||||||||
| Time and bareboat charter revenues | $ | 80,427 | $ | 75,064 | $ | 344,512 | $ | 263,683 | ||||||||
| Voyage charter revenues | 17,119 | 23,361 | 74,180 | 91,864 | ||||||||||||
| 97,546 | 98,425 | 418,692 | 355,547 | |||||||||||||
| Operating Expenses: | ||||||||||||||||
| Voyage expenses | 11,448 | 4,652 | 42,813 | 20,414 | ||||||||||||
| Vessel expenses | 39,009 | 35,657 | 159,466 | 134,618 | ||||||||||||
| Charter hire expenses | 22,861 | 22,630 | 90,608 | 90,359 | ||||||||||||
| Depreciation and amortization | 15,024 | 13,662 | 58,513 | 52,499 | ||||||||||||
| General and administrative | 6,957 | 6,482 | 26,869 | 23,399 | ||||||||||||
| Bad debt expense | - | - | - | 4,300 | ||||||||||||
| Loss on disposal of vessels and other property, including impairments, net | 24 | 19 | 982 | 106 | ||||||||||||
| Total operating expenses | 95,323 | 83,102 | 379,251 | 325,695 | ||||||||||||
| Income from vessel operations | 2,223 | 15,323 | 39,441 | 29,852 | ||||||||||||
| Equity in income of affiliated companies | - | 3,328 | - | 3,552 | ||||||||||||
| Gain on termination of pre-existing arrangement | - | - | 19,172 | - | ||||||||||||
| Operating income | 2,223 | 18,651 | 58,613 | 33,404 | ||||||||||||
| Other income, net | 1,808 | 448 | 1,621 | 1,440 | ||||||||||||
| Income before interest expense and income taxes | 4,031 | 19,099 | 60,234 | 34,844 | ||||||||||||
| Interest expense, net | (5,902 | ) | (6,509 | ) | (24,045 | ) | (25,633 | ) | ||||||||
| (Loss)/income before income taxes | (1,871 | ) | 12,590 | 36,189 | 9,211 | |||||||||||
| Income tax benefit/(expense) | 1,027 | (1,611 | ) | (6,185 | ) | (536 | ) | |||||||||
| Net (loss)/income | $ | (844 | ) | $ | 10,979 | $ | 30,004 | $ | 8,675 | |||||||
| Weighted Average Number of Common Shares Outstanding: | ||||||||||||||||
| Basic - Class A | 90,004,773 | 89,375,508 | 89,794,392 | 89,251,818 | ||||||||||||
| Diluted - Class A | 90,004,773 | 89,954,079 | 90,838,262 | 89,658,938 | ||||||||||||
| Per Share Amounts from Continuing Operations: | ||||||||||||||||
| Basic and diluted net (loss)/income - Class A | $ | (0.01 | ) | $ | 0.12 | $ | 0.33 | $ | 0.10 |
| 4 |
Consolidated Balance Sheets
| December 31, 2020 | December 31, 2019 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 69,697 | $ | 41,503 | ||||
| Restricted cash | 49 | 60 | ||||||
| Voyage receivables, including unbilled of $6,740 and $5,611, net of reserve for doubtful accounts | 13,123 | 9,247 | ||||||
| Income tax recoverable | 387 | 1,192 | ||||||
| Other receivables | 1,817 | 3,037 | ||||||
| Prepaid expenses | 1,310 | 1,292 | ||||||
| Inventories and other current assets | 2,293 | 1,178 | ||||||
| Total Current Assets | 88,676 | 57,509 | ||||||
| Vessels and other property, less accumulated depreciation and amortization | 832,174 | 737,212 | ||||||
| Deferred drydock expenditures, net | 43,134 | 23,734 | ||||||
| Total Vessels, Deferred Drydock and Other Property | 875,308 | 760,946 | ||||||
| Restricted cash | 73 | 114 | ||||||
| Investments in and advances to affiliated companies | - | 3,599 | ||||||
| Intangible assets, less accumulated amortization | 27,217 | 31,817 | ||||||
| Operating lease right-of-use assets | 215,817 | 286,469 | ||||||
| Other assets | 24,646 | 35,013 | ||||||
| Total Assets | $ | 1,231,737 | $ | 1,175,467 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable, accrued expenses and other current liabilities | $ | 48,089 | $ | 35,876 | ||||
| Current installments of long-term debt | 38,922 | 31,512 | ||||||
| Current portion of operating lease liabilities | 90,613 | 90,145 | ||||||
| Current portion of finance lease liabilities | 4,000 | 4,011 | ||||||
| Total Current Liabilities | 181,624 | 161,544 | ||||||
| Reserve for uncertain tax positions | 189 | 864 | ||||||
| Long-term debt, net | 390,198 | 336,535 | ||||||
| Deferred income taxes, net | 80,992 | 72,833 | ||||||
| Noncurrent operating lease liabilities | 147,154 | 219,501 | ||||||
| Noncurrent finance lease liabilities | 21,360 | 23,548 | ||||||
| Other liabilities | 30,409 | 19,097 | ||||||
| Total Liabilities | 851,926 | 833,922 | ||||||
| Commitments and contingencies (Note 18) | ||||||||
| Equity: | ||||||||
| Common stock - Class A ($0.01 par value; 166,666,666 shares authorized; 86,365,422 and 85,713,610 shares issued and outstanding) | 864 | 857 | ||||||
| Paid-in additional capital | 592,564 | 590,436 | ||||||
| Accumulated deficit | (213,335 | ) | (243,339 | ) | ||||
| 380,093 | 347,954 | |||||||
| Accumulated other comprehensive loss | (282 | ) | (6,409 | ) | ||||
| Total Equity | 379,811 | 341,545 | ||||||
| Total Liabilities and Equity | $ | 1,231,737 | $ | 1,175,467 |
| 5 |
Consolidated Statements of Cash Flows
| Years Ended December 31, | ||||||||
| 2020 | 2019 | |||||||
| Cash Flows from Operating Activities: | ||||||||
| Net income | $ | 30,004 | $ | 8,675 | ||||
| Items included in net income not affecting cash flows: | ||||||||
| Depreciation and amortization | 58,513 | 52,499 | ||||||
| Bad debt expense | - | 4,300 | ||||||
| Gain on termination of pre-existing arrangement | (19,172 | ) | - | |||||
| Amortization of debt discount and other deferred financing costs | 2,286 | 1,965 | ||||||
| Compensation relating to restricted stock, stock unit and stock option grants | 2,333 | 1,662 | ||||||
| Deferred income tax expense/(benefit) | 6,298 | (991 | ) | |||||
| Interest on finance lease liabilities | 1,973 | 1,462 | ||||||
| Non-cash operating lease expense | 91,696 | 90,922 | ||||||
| Distributed/(undistributed) earnings of affiliated companies | 3,562 | (14 | ) | |||||
| Items included in net income related to investing and financing activities: | ||||||||
| Loss on extinguishment and prepayments of debt, net | 793 | 72 | ||||||
| Loss on disposal of vessels and other property, including impairments, net | 982 | 106 | ||||||
| Payments for drydocking | (30,732 | ) | (12,278 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Operating lease liabilities | (92,753 | ) | (83,608 | ) | ||||
| (Increase)/decrease in receivables | (3,876 | ) | 2,549 | |||||
| Increase/(decrease) in income tax receivable | 6,133 | (601 | ) | |||||
| (Decrease)/increase in deferred revenue | (2,903 | ) | 4,848 | |||||
| Net change in other operating assets and liabilities | (2,469 | ) | 1,881 | |||||
| Net cash provided by operating activities | 52,668 | 73,449 | ||||||
| Cash Flows from Investing Activities: | ||||||||
| Acquisition, net of cash acquired | (16,973 | ) | - | |||||
| Expenditures for vessels and vessel improvements | (62,586 | ) | (118,055 | ) | ||||
| Proceeds from disposal of vessels and other property | 1,407 | 3,404 | ||||||
| Expenditures for other property | - | (4,459 | ) | |||||
| Deposit for vessel purchases | - | (10,800 | ) | |||||
| Net cash used in investing activities | (78,152 | ) | (129,910 | ) | ||||
| Cash Flows from Financing Activities: | ||||||||
| Extinguishment of debt and prepayments | (41,021 | ) | (3,271 | ) | ||||
| Issuance of debt, net of issuance and deferred financing costs | 143,949 | 47,824 | ||||||
| Payments on debt | (44,933 | ) | (23,866 | ) | ||||
| Tax withholding on share-based awards | (197 | ) | (294 | ) | ||||
| Payments on principal portion of finance lease liabilities | (4,172 | ) | (2,896 | ) | ||||
| Net cash provided by financing activities | 53,626 | 17,497 | ||||||
| Net increase/(decrease) in cash, cash equivalents and restricted cash | 28,142 | (38,964 | ) | |||||
| Cash, cash equivalents and restricted cash at beginning of year | 41,677 | 80,641 | ||||||
| Cash, cash equivalents and restricted cash at end of year | $ | 69,819 | $ | 41,677 |
| 6 |
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 months and fiscal year ended December 31, 2020 and the comparable periods of 2019. Revenue days in the quarter ended December 31, 2020 totaled 1,756 compared with 1,887 in the prior year quarter. Revenue days in the fiscal year ended December 31, 2020 totaled 7,639 compared with 7,215 in the prior year. A summary fleet list by vessel class can be found later in this press release.
| For the three months ended December 31, | 2020 | 2019 | ||||||||||||||
|
Spot Earnings |
Fixed Earnings |
Spot Earnings |
Fixed Earnings |
|||||||||||||
| Jones Act Handysize Product Carriers: | ||||||||||||||||
| Average rate | $ | 1,712 | $ | 62,935 | $ | 45,640 | $ | 59,832 | ||||||||
| Revenue days | 111 | 828 | 92 | 1,102 | ||||||||||||
| Non-Jones Act Handysize Product Carriers: | ||||||||||||||||
| Average rate | $ | 34,076 | $ | 11,093 | $ | 39,904 | $ | 16,114 | ||||||||
| Revenue days | 205 | 162 | 179 | 175 | ||||||||||||
| ATBs: | ||||||||||||||||
| Average rate | $ | - | $ | 30,056 | $ | 20,666 | $ | 24,150 | ||||||||
| Revenue days | - | 116 | 66 | 89 | ||||||||||||
| Lightering: | ||||||||||||||||
| Average rate | $ | 75,162 | $ | - | $ | 55,056 | $ | - | ||||||||
| Revenue days | 89 | - | 184 | - | ||||||||||||
| Alaska (a): | ||||||||||||||||
| Average rate | $ | - | $ | 58,987 | $ | - | $ | - | ||||||||
| Revenue days | - | 245 | - | - |
| For the years ended December 31, | 2020 | 2019 | ||||||||||||||
|
Spot Earnings |
Fixed Earnings |
Spot Earnings |
Fixed Earnings |
|||||||||||||
| Jones Act Handysize Product Carriers: | ||||||||||||||||
| Average rate | $ | 24,568 | $ | 61,411 | $ | 25,036 | $ | 57,910 | ||||||||
| Revenue days | 359 | 3,889 | 523 | 4,052 | ||||||||||||
| Non-Jones Act Handysize Product Carriers: | ||||||||||||||||
| Average rate | $ | 30,582 | $ | 15,213 | $ | 30,671 | $ | 13,912 | ||||||||
| Revenue days | 699 | 710 | 482 | 417 | ||||||||||||
| ATBs: | ||||||||||||||||
| Average rate | $ | 16,987 | $ | 28,536 | $ | 19,117 | $ | 21,861 | ||||||||
| Revenue days | 277 | 291 | 255 | 773 | ||||||||||||
| Lightering: | ||||||||||||||||
| Average rate | $ | 56,003 | $ | 61,012 | $ | 63,162 | $ | - | ||||||||
| Revenue days | 476 | 87 | 713 | - | ||||||||||||
| Alaska (a): | ||||||||||||||||
| Average rate | $ | - | $ | 58,742 | $ | - | $ | - | ||||||||
| Revenue days | - | 851 | - | - |
(a) Excludes one Alaska vessel currently in layup.
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Fleet Information
As of December 31, 2020, OSG's operating fleet consisted of 25 vessels, 13 of which were owned, with the remaining vessels chartered-in. Vessels chartered-in are on Bareboat Charters.
| Vessels Owned | Vessels Chartered-In | Total at December 31, 2020 | ||||||||||||||
| Vessel Type | Number | Number | Total Vessels | Total dwt (3) | ||||||||||||
| Handysize Product Carriers (1) | 6 | 11 | 17 | 810,825 | ||||||||||||
| 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 | 13 | 12 | 25 | 1,728,313 |
| (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 two owned Marshall Island flagged non-Jones Act MR tankers 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 December 31, |
Years Ended December 31, |
|||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| TCE revenues | $ | 86,098 | $ | 93,773 | $ | 375,879 | $ | 335,133 | ||||||||
| Add: Voyage Expenses | 11,448 | 4,652 | 42,813 | 20,414 | ||||||||||||
| Shipping revenues | $ | 97,546 | $ | 98,425 | $ | 418,692 | $ | 355,547 |
| 8 |
Vessel Operating Contribution
Vessel operating contribution, a non-GAAP measure, is TCE revenues minus vessel expenses and charter hire expenses.
|
Three Months Ended December 31, |
Years Ended December 31, |
|||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Niche market activities | $ | 18,313 | $ | 24,658 | $ | 79,826 | $ | 88,438 | ||||||||
| Jones Act handysize tankers | (2,464 | ) | 9,385 | 15,670 | 12,902 | |||||||||||
| ATBs | 1,335 | 1,443 | 4,658 | 8,816 | ||||||||||||
| Alaska crude oil tankers | 7,044 | - | 25,651 | - | ||||||||||||
| Vessel operating contribution | 24,228 | 35,486 | 125,805 | 110,156 | ||||||||||||
| Depreciation and amortization | 15,024 | 13,662 | 58,513 | 52,499 | ||||||||||||
| General and administrative | 6,957 | 6,482 | 26,869 | 23,399 | ||||||||||||
| Bad debt expense | - | - | - | 4,300 | ||||||||||||
| Loss on disposal of vessels and other property, including impairments, net | 24 | 19 | 982 | 106 | ||||||||||||
| Income from vessel operations | $ | 2,223 | $ | 15,323 | $ | 39,441 | $ | 29,852 |
(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 December 31, |
Years Ended December 31, |
|||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Net (loss)/income | $ | (844 | ) | $ | 10,979 | $ | 30,004 | $ | 8,675 | |||||||
| Income tax (benefit)/expense | (1,027 | ) | 1,611 | 6,185 | 536 | |||||||||||
| Interest expense | 5,902 | 6,509 | 24,045 | 25,633 | ||||||||||||
| Depreciation and amortization | 15,024 | 13,662 | 58,513 | 52,499 | ||||||||||||
| EBITDA | 19,055 | 32,761 | 118,747 | 87,343 | ||||||||||||
| Amortization classified in charter hire expenses | 143 | 96 | 570 | 873 | ||||||||||||
| Interest expense classified in charter hire expenses | 360 | 390 | 1,477 | 1,592 | ||||||||||||
| Loss on disposal of vessels and other property, including impairments, net | 24 | 19 | 982 | 106 | ||||||||||||
| Non-cash stock based compensation expense | 646 | 450 | 2,332 | 1,662 | ||||||||||||
| Loss on extinguishment of debt, net | 290 | - | 793 | 72 | ||||||||||||
| Adjusted EBITDA | $ | 20,518 | $ | 33,716 | $ | 124,901 | $ | 91,648 |
(C) Total Cash
| ($ in thousands) |
December 31, 2020 |
December 31, 2019 |
||||||
| Cash and cash equivalents | $ | 69,697 | $ | 41,503 | ||||
| Restricted cash - current | 49 | 60 | ||||||
| Restricted cash - non-current | 73 | 114 | ||||||
| Total Cash | $ | 69,819 | $ | 41,677 |
| 9 |