Global Ship Lease, Inc.
|
(Translation of registrant's name into English)
|
c/o Portland House,
25 Wilton Road
London SW1V 1LW
United Kingdom
|
(Address of principal executive office)
|
GLOBAL SHIP LEASE, INC.
|
||
(registrant)
|
||
Dated: November 6, 2019
|
By:
|
/s/ Ian J. Webber
|
Ian J. Webber
|
||
Chief Executive Officer
|
||
Three
months ended
|
Three
months ended
|
Nine
months
ended
|
Nine
months
ended
|
|||||||||||||
Sept 30, 2019
|
Sept 30, 2018
|
Sept 30, 2019
|
Sept 30, 2018
|
|||||||||||||
Operating Revenue (1)
|
65,947
|
35,889
|
193,548
|
107,075
|
||||||||||||
Operating Income
|
27,843
|
15,273
|
84,224
|
45,943
|
||||||||||||
Net Income (2)
|
9,949
|
3,863
|
28,798
|
12,075
|
||||||||||||
Adjusted EBITDA (3)
|
39,898
|
23,648
|
119,225
|
70,662
|
||||||||||||
Three months ended
|
Nine months ended
|
Year ended
|
||||||||||||||||||||||||||||||
Sept 30,
|
Sept 30,
|
Sept 30,
|
Sept 30,
|
Dec 31,
|
Dec 31,
|
Dec 31,
|
Dec 31,
|
|||||||||||||||||||||||||
Days
|
2019
|
2018
|
2019
|
2018
|
2018
|
2017
|
2016
|
2015
|
||||||||||||||||||||||||
Ownership days
|
3,610
|
1,748
|
10,522
|
5,019
|
7,675
|
6,570
|
6,588
|
6,893
|
||||||||||||||||||||||||
Planned offhire - dry-dockings
|
(168
|
)
|
(3
|
)
|
(342
|
)
|
(34
|
)
|
(34
|
)
|
(62
|
)
|
(100
|
)
|
(9
|
)
|
||||||||||||||||
Unplanned offhire
|
(6
|
)
|
(3
|
)
|
(30
|
)
|
(10
|
)
|
(17
|
)
|
(40
|
)
|
(3
|
)
|
(7
|
)
|
||||||||||||||||
Idle time
|
(32
|
)
|
(4
|
)
|
(50
|
)
|
(17
|
)
|
(47
|
)
|
0
|
0
|
(13
|
)
|
||||||||||||||||||
Operating days
|
3,404
|
1,738
|
10,100
|
4,958
|
7,577
|
6,468
|
6,485
|
6,864
|
||||||||||||||||||||||||
Utilization
|
94.3
|
%
|
99.4
|
%
|
96.0
|
%
|
98.8
|
%
|
98.7
|
%
|
98.4
|
%
|
98.4
|
%
|
99.6
|
%
|
Capacity in TEUs
|
Lightweight (tons)
|
Year Built
|
Charterer
|
Earliest
Charter Expiry Date
|
Latest
Charter Expiry Date
|
Daily Charter Rate $
|
|
CMA CGM Thalassa
|
11,040
|
38,577
|
2008
|
CMA CGM
|
4Q25
|
1Q26
|
47,200
|
UASC Al Khor(1)
|
9,115
|
31,764
|
2015
|
Hapag-Lloyd
|
1Q22
|
2Q22
|
34,000
|
Anthea Y(1)
|
9,115
|
31,890
|
2015
|
COSCO
|
2Q20
|
3Q20
|
39,200
|
Maira XL(1)
|
9,115
|
31,820
|
2015
|
COSCO
|
2Q20
|
3Q20
|
39,200
|
MSC Tianjin
|
8,667
|
34,243
|
2005
|
MSC
|
2Q24
|
3Q24(2)
|
-(2)
|
MSC Qingdao
|
8,667
|
34,305
|
2004
|
MSC
|
2Q24
|
3Q24(2)
|
-(2)
|
GSL Ningbo
|
8,667
|
34,243
|
2004
|
Maersk
|
3Q20
|
4Q20
|
18,000
|
GSL Kalliopi
|
7,849
|
29,105
|
2004
|
Maersk
|
3Q22
|
4Q24(3)
|
-(3)
|
GSL Grania
|
7,849
|
-
|
2004
|
Maersk
|
3Q22
|
4Q24(3)
|
-(3)
|
GSL Eleni
|
7,849
|
29,261
|
2004
|
Maersk
|
2Q24
|
3Q24(3)
|
-(3)
|
Mary(1)
|
6,927
|
23,424
|
2013
|
CMA CGM
|
3Q23
|
4Q23
|
25,910
|
Kristina(1)
|
6,927
|
23,424
|
2013
|
CMA CGM
|
2Q24
|
3Q24
|
25,910
|
Katherine(1)
|
6,927
|
23,424
|
2013
|
CMA CGM
|
1Q24
|
2Q24
|
25,910
|
Alexandra(1)
|
6,927
|
23,424
|
2013
|
CMA CGM
|
1Q24
|
2Q24
|
25,910
|
Alexis(1)
|
6,882
|
23,919
|
2015
|
CMA CGM
|
1Q24
|
2Q24
|
25,910
|
Olivia I(1)
|
6,882
|
23,864
|
2015
|
CMA CGM
|
1Q24
|
2Q24
|
25,910
|
New Purchase One
|
6,650
|
27,999
|
2002
|
Confidential
|
1Q20
|
2Q20
|
-(11)
|
New Purchase Two
|
6,650
|
27,999
|
2002
|
Confidential
|
2Q20
|
4Q20
|
-(11)
|
CMA CGM Berlioz
|
6,621
|
26,776
|
2001
|
CMA CGM
|
2Q21
|
4Q21
|
34,000
|
Agios Dimitrios
|
6,572
|
24,746
|
2011
|
MSC
|
3Q19
|
4Q23
|
12,500(4)
|
Tasman
|
5,936
|
25,010
|
2000
|
Maersk
|
1Q22
|
3Q22(5)
|
12,500(5)
|
Dimitris Y
|
5,936
|
25,010
|
2000
|
ZIM
|
2Q21
|
3Q21
|
14,500
|
Ian H
|
5,936
|
25,128
|
2000
|
ZIM
|
1Q21
|
2Q21
|
14,500
|
Dolphin II
|
5,095
|
20,596
|
2007
|
HMM
|
4Q19(6)
|
4Q19(6)
|
11,500(6)
|
Orca I
|
5,095
|
20,696
|
2006
|
Maersk
|
2Q20(7)
|
2Q21(7)
|
9,000(7)
|
CMA CGM Alcazar
|
5,089
|
20,087
|
2007
|
CMA CGM
|
4Q20
|
2Q21
|
33,750
|
CMA CGM Château d’If
|
5,089
|
20,100
|
2007
|
CMA CGM
|
4Q20
|
2Q21
|
33,750
|
CMA CGM Jamaica
|
4,298
|
17,272
|
2006
|
CMA CGM
|
3Q22
|
1Q23
|
25,350
|
CMA CGM Sambhar
|
4,045
|
17,355
|
2006
|
CMA CGM
|
3Q22
|
1Q23
|
25,350
|
CMA CGM America
|
4,045
|
17,355
|
2006
|
CMA CGM
|
3Q22
|
1Q23
|
25,350
|
GSL Valerie
|
2,824
|
11,971
|
2005
|
MSC
|
2Q20
|
3Q20
|
9,000
|
Athena
|
2,762
|
13,538
|
2003
|
MSC
|
1Q20
|
2Q20
|
9,000
|
Maira
|
2,506
|
11,453
|
2000
|
MSC
|
1Q20
|
2Q20
|
8,500
|
Nikolas
|
2,506
|
11,370
|
2000
|
MSC
|
1Q20
|
2Q20
|
9,000
|
Ship Name
|
Capacity in TEUs
|
Lightweight (tons)
|
Year Built
|
Charterer
|
Earliest
Charter Expiry Date
|
Latest
Charter Expiry Date
|
Daily Charter Rate $
|
Newyorker
|
2,506
|
11,463
|
2001
|
MSC
|
1Q20
|
2Q20
|
9,000
|
CMA CGM La Tour
|
2,272
|
11,742
|
2001
|
CMA CGM
|
4Q19
|
4Q19
|
15,300
|
CMA CGM Manet
|
2,272
|
11,742
|
2001
|
CMA CGM
|
4Q19
|
4Q19
|
15,300
|
CMA CGM Matisse
|
2,262
|
11,676
|
1999
|
CMA CGM
|
4Q19
|
4Q19
|
15,300
|
CMA CGM Utrillo
|
2,262
|
11,676
|
1999
|
CMA CGM
|
1Q20
|
1Q20
|
8,500
|
GSL Keta
|
2,207
|
11,731
|
2003
|
OOCL
|
4Q19
|
4Q19
|
8,700(8)
|
GSL Julie
|
2,207
|
11,731
|
2002
|
CMA CGM
|
4Q19
|
4Q19(9)
|
7,200(9)
|
Kumasi
|
2,207
|
11,731
|
2002
|
CMA CGM
|
4Q19
|
1Q21(10)
|
9,800(10)
|
Marie Delmas
|
2,207
|
11,731
|
2002
|
CMA CGM
|
4Q19
|
1Q21(10)
|
9,800(10)
|
(1) Modern design, high reefer capacity fuel efficient ships.
|
(2) Five year charter at implied Adjusted EBITDA of $25.6 million per ship for the period.
|
(3) GSL Eleni was delivered in 2Q19, GSL Grania was delivered in 3Q19 and GSL Kalliopi was delivered in October 2019.
GSL Eleni is chartered for five years; GSL Kalliopi and GSL Grania are chartered for three years plus two successive periods of one year at option of the charterer. Implied Aggregate Adjusted EBITDA of $32.0 million for firm periods,
increasing to $47.0 million if all options are exercised.
|
(4) Thereafter, the Company has the option, callable in 4Q19, to extend for four years at $20,000 per day.
|
(5) Additional 12 - month extension at charterer’s option, for an additional $4.4 million implied Adjusted EBITDA.
|
(6) Thereafter, 8-12 months to Feedertech at $12,500 per day commencing November 15, 2019.
|
(7) Rate increases to $10,000 per day from June 3, 2020.
|
(8) Thereafter, 100-180 days to OOCL at $9,400 per day commencing October 28, 2019.
|
(9) Option for six months plus or minus 30 days extension at $8,500 per day from October 16, 2019 has been exercised by the charterer.
|
(10) The Company has the option to extend to December 31, 2020 plus or minus 90 days, at $9,800 per day.
|
(11) New Purchase One is expected to be delivered in December 2019 and New Purchase Two in January 2020. Implied
Aggregate Adjusted EBITDA of $2.8 million for median period.
|
Three
|
Three
|
Nine
|
Nine
|
||||||||||||||
months
|
months
|
months
|
months
|
||||||||||||||
ended
|
ended
|
ended
|
ended
|
||||||||||||||
September 30,
|
September 30,
|
September 30,
|
September 30,
|
||||||||||||||
2019
|
2018
|
2019
|
2018
|
||||||||||||||
Net income available to Common Shareholders
|
9,949
|
3,863
|
28,798
|
12,075
|
|||||||||||||
Adjust:
|
Depreciation and amortization
|
11,174
|
8,374
|
32,884
|
24,703
|
||||||||||||
Interest income
|
(414
|
)
|
(364
|
)
|
(1,198
|
)
|
(984
|
)
|
|||||||||
Interest expense
|
18,424
|
10,996
|
56,484
|
32,512
|
|||||||||||||
Income tax
|
-
|
13
|
(40
|
)
|
59
|
||||||||||||
Earnings allocated to preferred shares
|
765
|
766
|
2,297
|
2,297
|
|||||||||||||
Adjusted EBITDA
|
39,898
|
23,648
|
119,225
|
70,662
|
• |
future operating or financial results;
|
• |
expectations regarding the future growth of the container shipping industry, including the rates of annual demand and supply growth;
|
• |
the financial condition of our charterers, particularly CMA CGM, our principal charterer and main source of operating revenue, and their ability to pay charter hire in
accordance with the charters;
|
• |
Global Ship Lease’s financial condition and liquidity, including its level of indebtedness or ability to obtain additional financing to fund capital expenditures, ship
acquisitions and other general corporate purposes;
|
• |
Global Ship Lease’s ability to meet its financial covenants and repay its credit facilities;
|
• |
Global Ship Lease’s expectations relating to dividend payments and forecasts of its ability to make such payments including the availability of cash and the impact of
constraints under its credit facility;
|
• |
risks relating to the acquisition of Poseidon Containers and Global Ship Lease’s ability to realize the anticipated benefits of the acquisition;
|
• |
future acquisitions, business strategy and expected capital spending;
|
• |
operating expenses, availability of crew, number of offhire days, drydocking and survey requirements and insurance costs;
|
• |
general market conditions and shipping industry trends, including charter rates and factors affecting supply and demand;
|
• |
assumptions regarding interest rates and inflation;
|
• |
changes in the rate of growth of global and various regional economies;
|
• |
risks incidental to ship operation, including piracy, discharge of pollutants and ship accidents and damage including total or constructive total loss;
|
• |
estimated future capital expenditures needed to preserve its capital base;
|
• |
Global Ship Lease’s expectations about the availability of ships to purchase, the time that it may take to construct new ships, or the useful lives of its ships;
|
• |
Global Ship Lease’s continued ability to enter into or renew long-term, fixed-rate charters or other ship employment arrangements;
|
• |
the continued performance of existing long-term, fixed-rate time charters;
|
• |
Global Ship Lease’s ability to capitalize on its management’s and board of directors’ relationships and reputations in the containership industry to its advantage;
|
• |
changes in governmental and classification societies’ rules and regulations or actions taken by regulatory authorities;
|
• |
expectations about the availability of insurance on commercially reasonable terms;
|
• |
unanticipated changes in laws and regulations including taxation;
|
• |
potential liability from future litigation.
|
As of
|
||||||||
September 30, 2019
|
December 31,
2018
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents
|
$
|
86,697
|
$
|
82,059
|
||||
Restricted cash
|
5,355
|
2,186
|
||||||
Accounts receivable, net
|
2,460
|
1,927
|
||||||
Inventories
|
5,313
|
5,769
|
||||||
Prepaid expenses and other current assets
|
6,755
|
6,214
|
||||||
Due from related parties
|
4,440
|
817
|
||||||
Total current assets
|
$
|
111,020
|
$
|
98,972
|
||||
NON-CURRENT ASSETS
|
||||||||
Vessels in operation
|
$
|
1,129,808
|
$
|
1,112,766
|
||||
Advances for vessel acquisitions
|
1,500
|
-
|
||||||
Other fixed assets
|
2
|
5
|
||||||
Intangible assets-charter agreements
|
2,458
|
5,400
|
||||||
Deferred charges, net
|
12,014
|
9,569
|
||||||
Other non-current assets
|
-
|
948
|
||||||
Restricted cash, net of current portion
|
5,702
|
5,827
|
||||||
Total non-current assets
|
1,151,484
|
1,134,515
|
||||||
TOTAL ASSETS
|
$
|
1,262,504
|
$
|
1,233,487
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES
|
||||||||
Accounts payable
|
$
|
7,925
|
$
|
9,586
|
||||
Accrued liabilities
|
26,396
|
15,407
|
||||||
Current portion of long-term debt
|
86,004
|
64,088
|
||||||
Deferred revenue
|
6,835
|
3,118
|
||||||
Due to related parties
|
63
|
3,317
|
||||||
Total current liabilities
|
$
|
127,223
|
$
|
95,516
|
||||
LONG-TERM LIABILITIES
|
||||||||
Long-term debt, net of current portion and deferred financing costs
|
$
|
782,725
|
$
|
813,130
|
||||
Intangible liability-charter agreements
|
6,964
|
8,470
|
||||||
Deferred tax liability
|
-
|
9
|
||||||
Total non-current liabilities
|
789,689
|
821,609
|
||||||
TOTAL LIABILITIES
|
$
|
916,912
|
$
|
917,125
|
||||
Commitments and Contingencies
|
-
|
-
|
||||||
SHAREHOLDERS' EQUITY
|
||||||||
Class A common shares-authorized 214,000,000
shares with a $0.01 par value 9,942,950 shares issued and outstanding (2018-9,017,205 shares)
|
$
|
99
|
$
|
90
|
||||
Class B common shares-authorized 20,000,000 shares with a $0.01 par value nil issued and outstanding (2018-925,745 shares)
|
-
|
9
|
||||||
Series B Preferred shares-authorized 16,100 shares with a $0.01 par value 14,000 shares issued and outstanding (2018-14,000
shares)
|
-
|
-
|
||||||
Series C Preferred shares-authorized 250,000 shares with a $0.01 par value 250,000 shares issued and outstanding (2018-250,000
shares)
|
3
|
3
|
||||||
Additional paid in capital
|
512,811
|
512,379
|
||||||
Accumulated deficit
|
(167,321
|
)
|
(196,119
|
)
|
||||
Total shareholders' equity
|
345,592
|
316,362
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
1,262,504
|
$
|
1,233,487
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Time charter revenue
|
$
|
25,538
|
$
|
4,114
|
$
|
80,661
|
$
|
14,222
|
||||||||
Time charter revenue-related parties
|
40,409
|
31,775
|
112,887
|
92,853
|
||||||||||||
65,947
|
35,889
|
193,548
|
107,075
|
|||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||
Vessel operating expenses
|
18,764
|
10,543
|
56,296
|
30,424
|
||||||||||||
Vessel operating expenses-related parties
|
2,773
|
215
|
7,006
|
751
|
||||||||||||
Time charter and voyage expenses
|
1,942
|
236
|
4,727
|
613
|
||||||||||||
Time charter and voyage expenses-related parties
|
478
|
-
|
1,328
|
-
|
||||||||||||
Depreciation and amortization
|
11,174
|
8,374
|
32,884
|
24,703
|
||||||||||||
General and administrative expenses
|
2,973
|
1,248
|
7,083
|
4,641
|
||||||||||||
Operating Income
|
27,843
|
15,273
|
84,224
|
45,943
|
||||||||||||
Interest income
|
414
|
364
|
1,198
|
984
|
||||||||||||
Interest and other financial expense
|
(18,424
|
)
|
(10,996
|
)
|
(56,484
|
)
|
(32,512
|
)
|
||||||||
Other income, net
|
881
|
1
|
2,117
|
16
|
||||||||||||
Total non-operating expense
|
(17,129
|
)
|
(10,631
|
)
|
(53,169
|
)
|
(31,512
|
)
|
||||||||
Income before income taxes
|
10,714
|
4,642
|
31,055
|
14,431
|
||||||||||||
Income taxes
|
-
|
(13
|
)
|
40
|
(59
|
)
|
||||||||||
Net Income
|
$
|
10,714
|
$
|
4,629
|
$
|
31,095
|
$
|
14,372
|
||||||||
Earnings allocated to Series B Preferred Shares
|
(765
|
)
|
(766
|
)
|
(2,297
|
)
|
(2,297
|
)
|
||||||||
Net Income available to Common Shareholders
|
$
|
9,949
|
$
|
3,863
|
$
|
28,798
|
$
|
12,075
|
||||||||
Earnings per Share
|
||||||||||||||||
Weighted average number of Class A common shares outstanding
|
||||||||||||||||
Basic
|
9,942,950
|
6,048,425
|
9,939,559
|
6,044,821
|
||||||||||||
Diluted
|
10,082,806
|
6,048,425
|
10,058,321
|
6,044,821
|
||||||||||||
Net Gain per Class A common share
|
$ | |||||||||||||||
Basic
|
0.43
|
0.64
|
1.26
|
2.00
|
||||||||||||
Diluted
|
0.43
|
0.64
|
1.24
|
2.00
|
||||||||||||
Weighted average number of Class B common shares outstanding
|
||||||||||||||||
Basic and diluted
|
$
|
n/a
|
925,745
|
n/a
|
925,745
|
|||||||||||
Net Gain per Class B common share
|
$ | |||||||||||||||
Basic and diluted
|
n/a
|
nil
|
n/a
|
nil
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net Income
|
$
|
10,714
|
$
|
4,630
|
$
|
31,095
|
$
|
14,372
|
||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
11,174
|
8,375
|
32,884
|
24,704
|
||||||||||||
Amortization of deferred financing costs
|
755
|
1,115
|
2,244
|
3,131
|
||||||||||||
Amortization of original issue discount / premium on repurchase of notes
|
202
|
201
|
607
|
602
|
||||||||||||
Amortization of intangible asset/liability-charter agreements
|
490
|
(443
|
)
|
1,436
|
(1,329
|
)
|
||||||||||
Share based compensation
|
1,288
|
45
|
1,288
|
136
|
||||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Decrease/(increase) in accounts receivable and other assets
|
1,660
|
(1,005
|
)
|
(86
|
)
|
(2,342
|
)
|
|||||||||
Decrease/(increase) in inventories
|
650
|
(715
|
)
|
456
|
(2,581
|
)
|
||||||||||
Increase in accounts payable and other liabilities
|
6,023
|
8,361
|
6,812
|
6,135
|
||||||||||||
(Decrease)/increase in related parties' balances
|
(510
|
)
|
496
|
(6,877
|
)
|
(603
|
)
|
|||||||||
Increase/(decrease) in deferred revenue
|
4,506
|
(248
|
)
|
3,717
|
(758
|
)
|
||||||||||
Unrealized foreign exchange loss (gain)
|
(30
|
)
|
7
|
(16
|
)
|
5
|
||||||||||
Net cash provided by operating activities
|
$
|
36,922
|
$
|
20,819
|
$
|
73,560
|
$
|
41,472
|
||||||||
Cash flows from investing activities:
|
||||||||||||||||
Acquisition of vessels
|
(15,001
|
)
|
-
|
(33,497
|
)
|
(11,436
|
)
|
|||||||||
Cash paid for vessel improvements
|
(7,286
|
)
|
(24
|
)
|
(14,062
|
)
|
(150
|
)
|
||||||||
Cash paid for dry-dockings
|
(2,485
|
)
|
(877
|
)
|
(3,182
|
)
|
(2,104
|
)
|
||||||||
Advances for vessel acquisitions
|
(1,500
|
)
|
-
|
(1,500
|
)
|
|||||||||||
Net cash used in investing activities
|
$
|
(26,272
|
)
|
$
|
(901
|
)
|
$
|
(52,241
|
)
|
$
|
(13,690
|
)
|
||||
Cash flows from financing activities:
|
||||||||||||||||
Proceeds from drawdown of credit facilities
|
280,500
|
8,125
|
293,500
|
8,125
|
||||||||||||
Repayment of credit facilities
|
(11,272
|
)
|
-
|
(37,819
|
)
|
(10,000
|
)
|
|||||||||
Repayment of refinanced debt
|
(262,809
|
)
|
-
|
(262,809
|
)
|
-
|
||||||||||
Deferred financing costs paid
|
(3,890
|
)
|
(1,812
|
)
|
(4,212
|
)
|
(1,812
|
)
|
||||||||
Series B Preferred Shares-dividends paid
|
(765
|
)
|
(766
|
)
|
(2,297
|
)
|
(2,297
|
)
|
||||||||
Net cash provided/(used) in financing activities
|
$
|
1,764
|
$
|
5,547
|
$
|
(13,637
|
)
|
$
|
(5,984
|
)
|
||||||
Net decrease in cash and cash equivalents and restricted cash
|
12,414
|
25,465
|
7,682
|
21,798
|
||||||||||||
Cash and cash equivalents and restricted cash at beginning of the period
|
85,340
|
69,599
|
90,072
|
73,266
|
||||||||||||
Cash and cash equivalents and restricted cash at end of the period
|
$
|
97,754
|
$
|
95,064
|
$
|
97,754
|
$
|
95,064
|
||||||||
Supplementary Cash Flow Information:
|
||||||||||||||||
Cash paid for interest
|
10,307
|
740
|
45,094
|
20,677
|
||||||||||||
Cash paid for income taxes
|
-
|
30
|
-
|
58
|
||||||||||||
Non-cash financing activities:
|
||||||||||||||||
Unpaid offering costs
|
856
|
-
|
856
|
-
|
As of
|
||||||||||||
Note
|
September 30,
2019
|
December 31,
2018
|
||||||||||
ASSETS
|
||||||||||||
CURRENT ASSETS
|
||||||||||||
Cash and cash equivalents
|
$
|
86,697
|
$
|
82,059
|
||||||||
Restricted cash
|
5,355
|
2,186
|
||||||||||
Accounts receivable, net
|
2,460
|
1,927
|
||||||||||
Inventories
|
5,313
|
5,769
|
||||||||||
Prepaid expenses and other current assets
|
6,755
|
6,214
|
||||||||||
Due from related parties
|
5
|
4,440
|
817
|
|||||||||
Total current assets
|
$
|
111,020
|
$
|
98,972
|
||||||||
NON-CURRENT ASSETS
|
||||||||||||
Vessels in operation
|
3
|
$
|
1,129,808
|
$
|
1,112,766
|
|||||||
Advances for vessel acquisitions
|
3
|
1,500
|
—
|
|||||||||
Other fixed assets
|
2
|
5
|
||||||||||
Intangible assets-charter agreements
|
2,458
|
5,400
|
||||||||||
Deferred charges, net
|
12,014
|
9,569
|
||||||||||
Other non-current assets
|
—
|
948
|
||||||||||
Restricted cash, net of current portion
|
5,702
|
5,827
|
||||||||||
Total non-current assets
|
1,151,484
|
1,134,515
|
||||||||||
TOTAL ASSETS
|
$
|
1,262,504
|
$
|
1,233,487
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||
CURRENT LIABILITIES
|
||||||||||||
Accounts payable
|
$
|
7,925
|
$
|
9,586
|
||||||||
Accrued liabilities
|
26,396
|
15,407
|
||||||||||
Current portion of long-term debt
|
4
|
86,004
|
64,088
|
|||||||||
Deferred revenue
|
6,835
|
3,118
|
||||||||||
Due to related parties
|
5
|
63
|
3,317
|
|||||||||
Total current liabilities
|
127,223
|
95,516
|
||||||||||
LONG-TERM LIABILITIES
|
||||||||||||
Long-term debt, net of current portion and deferred financing costs
|
4
|
$
|
782,725
|
$
|
813,130
|
|||||||
Intangible liability-charter agreements
|
6,964
|
8,470
|
||||||||||
Deferred tax liability
|
—
|
9
|
||||||||||
Total non-current liabilities
|
789,689
|
821,609
|
||||||||||
Total liabilities
|
$
|
916,912
|
$
|
917,125
|
||||||||
Commitments and Contingencies
|
6
|
—
|
—
|
|||||||||
SHAREHOLDERS' EQUITY
|
||||||||||||
Class A common shares - authorized 214,000,000 shares with a $0.01 par value 9,942,950 shares issued and outstanding (2018 – 9,017,205 shares)
|
7
|
$
|
99
|
$
|
90
|
|||||||
Class B common shares - authorized 20,000,000 shares with a $0.01 par value nil shares issued and outstanding (2018 – 925,745 shares)
|
7
|
—
|
9
|
|||||||||
Series B Preferred Shares - authorized 16,100 shares with a $0.01 par value 14,000 shares issued and outstanding (2018 – 14,000 shares)
|
7
|
—
|
—
|
|||||||||
Series C Preferred Shares - authorized 250,000 shares with a $0.01 par value 250,000 shares issued and outstanding (2018 - 250,000 shares)
|
7
|
3
|
3
|
|||||||||
Additional paid in capital
|
512,811
|
512,379
|
||||||||||
Accumulated deficit
|
(167,321
|
)
|
(196,119
|
)
|
||||||||
Total shareholders' equity
|
345,592
|
316,362
|
||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
1,262,504
|
$
|
1,233,487
|
Nine months ended
September 30,
|
||||||||||||
Note
|
2019
|
2018
|
||||||||||
OPERATING REVENUES
|
||||||||||||
Time charter revenue
|
$
|
80,661
|
$
|
14,222
|
||||||||
Time charter revenue-related parties
|
5
|
112,887
|
92,853
|
|||||||||
193,548
|
107,075
|
|||||||||||
OPERATING EXPENSES:
|
||||||||||||
Vessels operating expenses
|
56,296
|
30,424
|
||||||||||
Vessels operating expenses-related parties
|
5
|
7,006
|
751
|
|||||||||
Time charter and voyage expenses
|
4,727
|
613
|
||||||||||
Time charter and voyage expenses-related parties
|
1,328
|
—
|
||||||||||
Depreciation and amortization
|
3
|
32,884
|
24,703
|
|||||||||
General and administrative expenses
|
7,083
|
4,641
|
||||||||||
Operating Income
|
84,224
|
45,943
|
||||||||||
Interest income
|
1,198
|
984
|
||||||||||
Interest and other financial expense
|
(56,484
|
)
|
(32,512
|
)
|
||||||||
Other income, net
|
2,117
|
16
|
||||||||||
Total non-operating expense
|
(53,169
|
)
|
(31,512
|
)
|
||||||||
Income before income taxes
|
31,055
|
14,431
|
||||||||||
Income taxes
|
40
|
(59
|
)
|
|||||||||
Net Income
|
$
|
31,095
|
$
|
14,372
|
||||||||
Earnings allocated to Series B Preferred Shares
|
7
|
(2,297
|
)
|
(2,297
|
)
|
|||||||
Net Income available to Common Shareholders
|
$
|
28,798
|
$
|
12,075
|
||||||||
Earnings per Share
|
||||||||||||
Weighted average number of Class A common shares outstanding
|
||||||||||||
Basic
|
9
|
9,939,559
|
6,044,821
|
|||||||||
Diluted
|
9
|
10,058,321
|
6,044,821
|
|||||||||
|
||||||||||||
Net Gain per Class A common share
|
||||||||||||
Basic
|
$
|
1.26
|
2.00
|
|||||||||
Diluted
|
$
|
1.24
|
2.00
|
|||||||||
|
||||||||||||
Weighted average number of Class B common shares outstanding
|
||||||||||||
Basic and diluted
|
9
|
nil
|
925,745
|
|||||||||
Net Gain per Class B common shares
|
||||||||||||
Basic and diluted
|
9
|
$
|
n/a
|
$nil
|
Nine months ended
September 30,
|
||||||||||||
Note
|
2019
|
2018
|
||||||||||
Cash flows from operating activities:
|
||||||||||||
Net Income
|
$
|
31,095
|
$
|
14,372
|
||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Depreciation and amortization
|
3
|
32,884
|
24,704
|
|||||||||
Amortization of deferred financing costs
|
4
|
2,244
|
3,131
|
|||||||||
Amortization of original issue discount / premium on repurchase of notes
|
4
|
607
|
602
|
|||||||||
Amortization of intangible asset/liability-charter agreements
|
1,436
|
(1,329
|
)
|
|||||||||
Share based compensation
|
8
|
1,288
|
136
|
|||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Increase in accounts receivable and other assets
|
(86
|
)
|
(2,342
|
)
|
||||||||
Decrease/(Increase) in inventories
|
456
|
(2,581
|
)
|
|||||||||
Increase in accounts payable and other liabilities
|
6,812
|
6,135
|
||||||||||
Decrease in related parties' balances
|
5
|
(6,877
|
)
|
(603
|
)
|
|||||||
Increase/(Decrease) in deferred revenue
|
3,717
|
(758
|
)
|
|||||||||
Unrealized foreign exchange (gain)/ loss
|
(16
|
)
|
5
|
|||||||||
Net cash provided by operating activities
|
$
|
73,560
|
$
|
41,472
|
||||||||
Cash flows from investing activities:
|
||||||||||||
Acquisition of vessels
|
(33,497
|
)
|
(11,436
|
)
|
||||||||
Cash paid for vessel improvements
|
(14,062
|
)
|
(150
|
)
|
||||||||
Cash paid for dry-dockings
|
(3,182
|
)
|
(2,104
|
)
|
||||||||
Advances for vessel acquisitions
|
(1,500
|
)
|
—
|
|||||||||
Net cash used in investing activities
|
$
|
(52,241
|
)
|
$
|
(13,690
|
)
|
||||||
Cash flows from financing activities:
|
||||||||||||
Proceeds from drawdown of credit facilities
|
293,500
|
8,125
|
||||||||||
Repayment of credit facilities
|
(37,819
|
)
|
(10,000
|
)
|
||||||||
Repayment of refinanced debt
|
4
|
(262,809
|
)
|
—
|
||||||||
Deferred financing costs paid
|
(4,212
|
)
|
(1,812
|
)
|
||||||||
Series B Preferred Shares-dividends paid
|
7
|
(2,297
|
)
|
(2,297
|
)
|
|||||||
Net cash used in financing activities
|
$
|
(13,637
|
)
|
$
|
(5,984
|
)
|
||||||
Net increase in cash and cash equivalents and restricted cash
|
7,682
|
21,798
|
||||||||||
Cash and cash equivalents and restricted cash at beginning of the period
|
90,072
|
73,266
|
||||||||||
Cash and cash equivalents and restricted cash at end of the period
|
$
|
97,754
|
$
|
95,064
|
||||||||
Supplementary Cash Flow Information:
|
||||||||||||
Cash paid for interest
|
45,094
|
20,677
|
||||||||||
Cash paid for income taxes
|
—
|
58
|
||||||||||
Non-cash financing activities:
|
||||||||||||
Unpaid offering costs
|
856
|
—
|
|
|
|
Additional paid-in capital
|
|
||||||||||||||||||||||||||||||||
Number of Common Shares at par value $0.01
|
Number of Series B
Preferred Shares
at par value $0.01
|
Number of Series C
Preferred Shares
at par value $0.01
|
Common Shares
|
Series B Preferred Shares
|
Series C Preferred Shares
|
Accumulated Deficit
|
Total Shareholders' Equity
|
|||||||||||||||||||||||||||||
Balance
at December 31, 2017
|
6,876,962
|
14,000
|
—
|
$
|
69
|
$
|
—
|
$
|
—
|
$
|
387,229
|
$
|
(135,693
|
)
|
$
|
251,605
|
||||||||||||||||||||
Restricted Stock Units
(Note 8)
|
—
|
—
|
—
|
—
|
—
|
—
|
277
|
—
|
277
|
|||||||||||||||||||||||||||
Net Income for the period
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
4,958
|
4,958
|
|||||||||||||||||||||||||||
Series B Preferred Shares dividend (Note 7)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(766
|
)
|
(766
|
)
|
|||||||||||||||||||||||||
Balance
at March 31, 2018
|
6,876,962
|
14,000
|
—
|
$
|
69
|
$
|
—
|
$
|
—
|
$
|
387,506
|
$
|
(131,501
|
)
|
$
|
256,074
|
||||||||||||||||||||
Restricted Stock Units
(Note 8)
|
—
|
—
|
—
|
—
|
—
|
—
|
45
|
—
|
45
|
|||||||||||||||||||||||||||
Net Income for the period
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
4,785
|
4,785
|
|||||||||||||||||||||||||||
Series B Preferred Shares dividend (Note 7)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(765
|
)
|
(765
|
)
|
|||||||||||||||||||||||||
Balance
at June 30, 2018
|
6,876,962
|
14,000
|
—
|
$
|
69
|
$
|
—
|
$
|
—
|
$
|
387,551
|
$
|
(127,481
|
)
|
$
|
260,139
|
||||||||||||||||||||
Restricted Stock Units
(Note 8)
|
—
|
—
|
—
|
—
|
—
|
—
|
45
|
—
|
45
|
|||||||||||||||||||||||||||
Net Income for the period
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
4,628
|
4,628
|
|||||||||||||||||||||||||||
Series B Preferred Shares dividend (Note 7)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(765
|
)
|
(765
|
)
|
|||||||||||||||||||||||||
Balance
at September 30, 2018
|
6,876,962
|
14,000
|
—
|
$
|
69
|
$
|
—
|
$
|
—
|
$
|
387,596
|
$
|
(123,618
|
)
|
$
|
264,047
|
||||||||||||||||||||
Number of Common Shares at par value $0.01
|
Number of Series B
Preferred Shares
at par value $0.01
|
Number of Series C
Preferred Shares
at par value $0.01
|
Common Shares
|
Series B Preferred Shares
|
Series C Preferred Shares
|
Additional paid-in capital
|
Accumulated Deficit
|
Total Shareholders' Equity
|
||||||||||||||||||||||||||||
Balance
at December 31, 2018
|
9,942,950
|
14,000
|
250,000
|
$
|
99
|
$
|
—
|
$
|
3
|
$
|
512,379
|
$
|
(196,119
|
)
|
$
|
316,362
|
||||||||||||||||||||
Net Income for the period
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
10,818
|
10,818
|
|||||||||||||||||||||||||||
Series B Preferred Shares dividend (Note 7)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(766
|
)
|
(766
|
)
|
|||||||||||||||||||||||||
Balance
at March 31, 2019
|
9,942,950
|
14,000
|
250,000
|
$
|
99
|
$
|
—
|
$
|
3
|
512,379
|
$
|
(186,067
|
)
|
326,414
|
||||||||||||||||||||||
Net Income for the period
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
9,563
|
$
|
9,563
|
||||||||||||||||||||||||||
Series B Preferred Shares dividend (Note 7)
|
—
|
—
|
—
|
—
|
—
|
—
|