Global Ship Lease, Inc.
|
(Translation of registrant's name into English)
|
c/o Global Ship Lease Services Limited,
25 Wilton Road
London SW1V 1LW
United Kingdom
|
(Address of principal executive office)
|
GLOBAL SHIP LEASE, INC.
|
||
(registrant)
|
||
Dated: November 10, 2020
|
By:
|
/s/ Ian J. Webber
|
Ian J. Webber
|
||
Chief Executive Officer
|
||
• |
Charters for six 2,200 – 2,500 TEU feeder ships (Julie, Keta, Kumasi, Marie Delmas, La Tour, and Manet), to Sea Consortium, OOCL, CMA CGM (two ships), MSC,
and Sea-Lead, at rates between $7,250 and $9,400 per day, and with median redelivery periods between 4Q2020 and 4Q2021;
|
• |
A charter for GSL Valerie, a 2,800 TEU feeder ship, to ZIM, on completion of her five-year special survey, at an average rate of $12,825 per day and with median redelivery in 4Q2021;
|
• |
A charter for GSL Chateau d’If, a 5,100 TEU Panamax ship, to Hapag-Lloyd, at a rate of $14,500 per day, and with median redelivery in 4Q2021;
|
• |
A charter extension for CMA CGM Alcazar, a 5,100 TEU Panamax ship, to CMA CGM, at a rate of $16,000 per day, and with median redelivery in 4Q2021;
|
• |
A charter extension for Dimitris Y, a 5,900 TEU Post-Panamax ship, to ZIM, at a rate of $14,500 per day, and with median redelivery in 2Q2022;
|
• |
Charters for two 6,800 TEU Post-Panamax ships (GSL Christen and GSL Nicoletta), to Maersk and MSC, at daily rates of $12,250 (escalating over time) and
$13,500, respectively, and with median charter periods to 1Q2021 and 3Q2021;
|
• |
A charter for GSL Ningbo, an 8,600 TEU Post-Panamax ship, to MSC, at a rate of $22,500 per day, and with a median charter period to 2Q2023;
|
• |
A charter for Maira XL, an ECO-9,100 TEU ship, to a leading liner operator, at a rate expected to generate approximate Adjusted EBITDA of $14.3 million over the median charter period to 2Q2022; and
|
• |
A charter for Anthea Y, an ECO-9,100 TEU ship, to a leading line operator, at a rate expected to generate approximate Adjusted EBITDA of $29.5 million over the median charter period to 3Q2023;
|
Three
|
Three
|
Nine
|
Nine
|
|||||||||||||
months
ended |
months
ended |
months
ended |
months
ended |
|||||||||||||
September
30, 2020 |
September
30, 2019 |
September
30, 2020 |
September
30, 2019 |
|||||||||||||
Operating Revenue (1)
|
70,520
|
65,947
|
212,843
|
193,548
|
||||||||||||
Operating Income
|
28,834
|
28,701
|
78,912
|
84,224
|
||||||||||||
Net Income (2)
|
13,590
|
10,807
|
26,816
|
28,798
|
||||||||||||
Adjusted EBITDA (3)
|
41,610
|
40,756
|
122,960
|
119,225
|
||||||||||||
Normalized Net Income (3)
|
13,834
|
10,807
|
37,828
|
28,798
|
||||||||||||
Three months ended
|
Nine months ended
|
Year ended
|
||||||||||||||||||||||||||||||
September 30,
|
September 30,
|
September 30,
|
September 30,
|
Dec 31,
|
Dec 31,
|
Dec 31,
|
Dec 31,
|
|||||||||||||||||||||||||
Days
|
2020
|
2019
|
2020
|
2019
|
2019
|
2018
|
2017
|
2016
|
||||||||||||||||||||||||
Ownership days
|
3,977
|
3,610
|
12,088
|
10,522
|
14,326
|
7,675
|
6,570
|
6,588
|
||||||||||||||||||||||||
Planned offhire - dry-dockings
|
(125
|
)
|
(168
|
)
|
(559
|
)
|
(342
|
)
|
(537
|
)
|
(34
|
)
|
(62
|
)
|
(100
|
)
|
||||||||||||||||
Unplanned offhire
|
(20
|
)
|
(6
|
)
|
(79
|
)
|
(30
|
)
|
(105
|
)
|
(17
|
)
|
(40
|
)
|
(3
|
)
|
||||||||||||||||
Idle time
|
(62
|
)
|
(32
|
)
|
(312
|
)
|
(50
|
)
|
(164
|
)
|
(47
|
)
|
0
|
0
|
||||||||||||||||||
Operating days
|
3,770
|
3,404
|
11,138
|
10,100
|
13,520
|
7,577
|
6,468
|
6,485
|
||||||||||||||||||||||||
Utilization
|
94.8
|
%
|
94.3
|
%
|
92.1
|
%
|
96.0
|
%
|
94.4
|
%
|
98.7
|
%
|
98.4
|
%
|
98.4
|
%
|
Vessel Name
|
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
|
Confidential (2)
|
3Q23
|
(2)
|
4Q23
|
(2)
|
Confidential
|
(2) |
|||||||||||||||
Maira XL(1)
|
9,115
|
31,820
|
2015
|
Confidential (3)
|
2Q22
|
3Q22
|
Confidential
|
(3) |
|||||||||||||||||
MSC Tianjin
|
8,603
|
34,325
|
2005
|
MSC
|
2Q24
|
3Q24
|
Confidential
|
(4) |
|||||||||||||||||
MSC Qingdao
|
8,603
|
34,305
|
2004
|
MSC
|
2Q24
|
3Q24
|
Confidential
|
(4) |
|||||||||||||||||
GSL Ningbo
|
8,603
|
34,340
|
2004
|
Maersk (5)
|
1Q23
|
(5)
|
3Q23
|
(5)
|
18,000
|
(5)
|
|||||||||||||||
GSL Eleni
|
7,847
|
29,261
|
2004
|
Maersk
|
3Q24
|
4Q24
|
(6)
|
16,500
|
(6)
|
||||||||||||||||
GSL Kalliopi
|
7,847
|
29,105
|
2004
|
Maersk
|
4Q22
|
4Q24
|
(6)
|
14,500
|
(6)
|
||||||||||||||||
GSL Grania
|
7,847
|
29,190
|
2004
|
Maersk
|
4Q22
|
4Q24
|
(6)
|
14,500
|
(6)
|
||||||||||||||||
Mary(1)
|
6,927
|
23,424
|
2013
|
CMA CGM
|
3Q23
|
4Q23
|
25,910
|
||||||||||||||||||
Kristina(1)
|
6,927
|
23,421
|
2013
|
CMA CGM
|
2Q24
|
3Q24
|
25,910
|
||||||||||||||||||
Katherine (1)
|
6,927
|
23,403
|
2013
|
CMA CGM
|
1Q24
|
2Q24
|
25,910
|
||||||||||||||||||
Alexandra (1)
|
6,927
|
23,348
|
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
|
||||||||||||||||||
GSL Christen
|
6,840
|
27,954
|
2002
|
Maersk (7)
|
4Q20
|
2Q21
|
12,250
|
(7)
|
|||||||||||||||||
GSL Nicoletta
|
6,840
|
28,070
|
2002
|
MSC
|
2Q21
|
3Q21
|
13,500
|
||||||||||||||||||
CMA CGM Berlioz
|
6,621
|
26,776
|
2001
|
CMA CGM
|
2Q21
|
4Q21
|
34,000
|
||||||||||||||||||
Agios Dimitrios
|
6,572
|
24,746
|
2011
|
MSC
|
4Q23
|
1Q24
|
20,000
|
||||||||||||||||||
GSL Vinia
|
6,080
|
23,737
|
2004
|
Maersk (8)
|
3Q24
|
1Q25
|
13,250
|
(8)
|
|||||||||||||||||
GSL Christel Elisabeth
|
6,080
|
23,745
|
2004
|
Maersk (8)
|
2Q24
|
1Q25
|
13,250
|
(8)
|
|||||||||||||||||
Tasman
|
5,936
|
25,010
|
2000
|
Maersk
|
1Q22
|
3Q23
|
(9)
|
12,500
|
(9)
|
||||||||||||||||
Dimitris Y
|
5,936
|
25,010
|
2000
|
ZIM
|
2Q22
|
2Q22
|
14,500
|
||||||||||||||||||
Ian H
|
5,936
|
25,128
|
2000
|
ZIM
|
1Q21
|
2Q21
|
14,500
|
||||||||||||||||||
Dolphin II
|
5,095
|
20,596
|
2007
|
Sea-Lead
|
4Q20
|
4Q20
|
7,000
|
||||||||||||||||||
Orca I
|
5,095
|
20,633
|
2006
|
Maersk
|
4Q20
|
(10)
|
2Q21
|
(10)
|
10,000
|
(10)
|
|||||||||||||||
CMA CGM Alcazar
|
5,089
|
20,087
|
2007
|
CMA CGM
|
4Q21
|
(11)
|
4Q21
|
(11)
|
33,750
|
(11)
|
|||||||||||||||
GSL Château d’If
|
5,089
|
19,994
|
2007
|
CMA CGM (11)
|
4Q21
|
(11)
|
4Q21
|
(11)
|
33,750
|
(11)
|
|||||||||||||||
CMA CGM Jamaica
|
4,298
|
17,272
|
2006
|
CMA CGM
|
3Q22
|
1Q23
|
25,350
|
||||||||||||||||||
CMA CGM Sambhar
|
4,045
|
17,429
|
2006
|
CMA CGM
|
3Q22
|
1Q23
|
25,350
|
||||||||||||||||||
CMA CGM America
|
4,045
|
17,428
|
2006
|
CMA CGM
|
3Q22
|
1Q23
|
25,350
|
||||||||||||||||||
GSL Valerie
|
2,824
|
11,971
|
2005
|
ZIM
|
3Q21
|
1Q22
|
12,825
|
(12)
|
|||||||||||||||||
Athena
|
2,762
|
13,538
|
2003
|
MSC
|
1Q21
|
1Q21
|
9,000
|
||||||||||||||||||
Maira
|
2,506
|
11,453
|
2000
|
MSC
|
4Q20
|
4Q20
|
8,000
|
||||||||||||||||||
Nikolas
|
2,506
|
11,370
|
2000
|
MSC
|
4Q20
|
4Q20
|
8,000
|
||||||||||||||||||
Newyorker
|
2,506
|
11,463
|
2001
|
MSC
|
1Q21
|
1Q21
|
8,000
|
||||||||||||||||||
La Tour
|
2,272
|
11,742
|
2001
|
MSC
|
2Q21
|
2Q21
|
7,250
|
||||||||||||||||||
Manet
|
2,272
|
11,727
|
2001
|
Sea-Lead
|
4Q20
|
4Q20
|
7,750
|
||||||||||||||||||
Keta
|
2,207
|
11,731
|
2003
|
OOCL
|
3Q21
|
(13)
|
3Q21
|
(13)
|
8,000
|
(13)
|
|||||||||||||||
Julie
|
2,207
|
11,731
|
2002
|
Sea Consortium
|
2Q21
|
2Q21
|
9,250
|
||||||||||||||||||
Kumasi
|
2,207
|
11,791
|
2002
|
CMA CGM
|
3Q21
|
(14)
|
4Q21
|
(14)
|
9,800
|
(14)
|
|||||||||||||||
Marie Delmas
|
2,207
|
11,731
|
2002
|
CMA CGM
|
3Q21
|
(14)
|
4Q21
|
(14)
|
9,800
|
(14)
|
A. |
Adjusted EBITDA
|
Three
|
Three
|
Nine
|
Nine
|
||||||||||||||
months
|
months
|
months
|
months
|
||||||||||||||
ended
|
ended
|
ended
|
ended
|
||||||||||||||
September 30,
|
September 30,
|
September 30,
|
September 30,
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
||||||||||||||
Net income available to Common Shareholders
|
13,590
|
10,807
|
26,816
|
28,798
|
|||||||||||||
Adjust:
|
Depreciation and amorization
|
11,844
|
11,174
|
34,970
|
32,884
|
||||||||||||
|
Impairment charges
|
-
|
-
|
8,497
|
-
|
||||||||||||
|
Loss on sale of vessels
|
244
|
-
|
244
|
-
|
||||||||||||
|
Interest income
|
(66
|
)
|
(414
|
)
|
(897
|
)
|
(1,198
|
)
|
||||||||
|
Interest expense
|
14,994
|
18,424
|
50,533
|
56,484
|
||||||||||||
|
Income tax |
47
|
-
|
50
|
(40
|
)
|
|||||||||||
|
Earnings allocated to preferred shares
|
957
|
765
|
2,747
|
2,297
|
||||||||||||
Adjusted EBITDA
|
41,610
|
40,756
|
122,960
|
119,225
|
B. |
Normalized net income
|
Three
|
Three
|
Nine
|
Nine
|
||||||||||||||
months
|
months
|
months
|
months
|
||||||||||||||
ended
|
ended
|
ended
|
ended
|
||||||||||||||
September 30,
|
September 30,
|
September 30,
|
September 30,
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
||||||||||||||
Net income available to Common Shareholders
|
13,590
|
10,807
|
26,816
|
28,798
|
|||||||||||||
Adjust:
|
Impairment charges |
-
|
-
|
8,497
|
-
|
||||||||||||
|
Loss on sale of vessels
|
244
|
-
|
244
|
-
|
||||||||||||
|
Premium paid on redemption of 2022 Notes
|
-
|
-
|
2,271
|
-
|
||||||||||||
Normalized net income
|
13,834
|
10,807
|
37,828
|
28,798
|
• |
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 length and severity of the ongoing outbreak of the novel coronavirus (COVID-19) around the world and governmental responses thereto;
|
• |
the financial condition of our charterers, particularly CMA CGM, our principal charterer and main source of operating revenue, and their ability to pay charterhire 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 off-hire 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.
|
September 30, 2020
|
December 31, 2019
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents
|
|
98,964
|
|
138,024
|
||||
Restricted cash
|
8,728
|
3,909
|
||||||
Accounts receivable, net
|
2,356
|
2,350
|
||||||
Inventories
|
5,415
|
5,595
|
||||||
Prepaid expenses and other current assets
|
6,075
|
8,132
|
||||||
Due from related parties
|
2,371
|
3,860
|
||||||
Total current assets
|
$
|
123,909
|
$
|
161,870
|
||||
NON - CURRENT ASSETS
|
||||||||
Vessels in operation
|
|
1,148,116
|
|
1,155,586
|
||||
Advances for vessels acquisitions and other additions
|
4,047
|
10,791
|
||||||
Intangible assets - charter agreements
|
49
|
1,467
|
||||||
Deferred charges, net
|
18,858
|
16,408
|
||||||
Restricted cash, net of current portion
|
6,216
|
5,703
|
||||||
Total non - current assets
|
1,177,286
|
1,189,955
|
||||||
TOTAL ASSETS
|
$
|
1,301,195
|
$
|
1,351,825
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES
|
||||||||
Accounts payable
|
|
9,469
|
|
9,052
|
||||
Accrued liabilities
|
21,852
|
22,916
|
||||||
Current portion of long-term debt and deferred financing costs
|
81,313
|
87,532
|
||||||
Deferred revenue
|
6,115
|
9,987
|
||||||
Due to related parties
|
153
|
109
|
||||||
Total current liabilities
|
$
|
118,902
|
$
|
129,596
|
||||
LONG-TERM LIABILITIES
|
||||||||
Long - term debt, net of current portion and deferred financing costs
|
|
735,509
|
|
809,357
|
||||
Intangible liability-charter agreements
|
4,964
|
6,470
|
||||||
Total non - current liabilities
|
740,473
|
815,827
|
||||||
Total liabilities
|
$
|
859,375
|
$
|
945,423
|
||||
Commitments and Contingencies
|
||||||||
SHAREHOLDERS' EQUITY
|
||||||||
Class A common shares - authorized
214,000,000 shares with a $0.01 par value 17,741,008 shares issued and outstanding (2019 – 17,556,738 shares) |
177
|
175
|
||||||
Class B common shares - authorized
20,000,000 shares with a $0.01 par value nil shares issued and outstanding (2019 – nil shares) |
-
|
-
|
||||||
Series B Preferred Shares - authorized
44,000 shares with a $0.01 par value 16,655 shares issued and outstanding (2019 – 14,428 shares) |
-
|
-
|
||||||
Series C Preferred Shares - authorized
250,000 shares with a $0.01 par value 250,000 shares issued and outstanding (2019 - 250,000 shares) |
3
|
3
|
||||||
Additional paid in capital
|
574,186
|
565,586
|
||||||
Accumulated deficit
|
(132,546
|
)
|
(159,362
|
)
|
||||
Total shareholders' equity
|
441,820
|
406,402
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
1,301,195
|
$
|
1,351,825
|
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Time charter revenue (includes related party revenues of $37,027 and $40,409 for each of the three month periods ended September 30, 2020 and 2019, respectively, and $111,551 and $112,887 for each of the nine month periods ended September
30, 2020 and 2019, respectively)
|
|
70,520
|
|
65,947
|
|
212,843
|
|
193,548
|
||||||||
OPERATING EXPENSES:
|
||||||||||||||||
Vessel operating expenses (includes related party vessel operating expenses of $3,276 and $2,773 for each of the three month periods ended September 30, 2020 and 2019, respectively, and $9,381 and $7,006 for each of the nine month periods
ended September 30, 2020 and 2019, respectively)
|
25,442
|
21,537
|
75,124
|
63,302
|
||||||||||||
Time charter and voyage expenses (includes related party time charter and voyage expenses of $600 and $478 for each of the three month periods ended September 30, 2020 and 2019, respectively, and $1,801 and $1,328 for each of the nine
month periods ended September 30, 2020 and 2019, respectively)
|
2,537
|
2,420
|
8,718
|
6,055
|
||||||||||||
Depreciation and amortization
|
11,844
|
11,174
|
34,970
|
32,884
|
||||||||||||
Vessel impairment losses
|
-
|
-
|
8,497
|
-
|
||||||||||||
General and administrative expenses
|
1,619
|
2,115
|
6,378
|
7,083
|
||||||||||||
Loss on sale of vessels
|
244
|
-
|
244
|
-
|
||||||||||||
Operating Income
|
28,834
|
28,701
|
78,912
|
84,224
|
||||||||||||
|
||||||||||||||||
NON OPERATING INCOME/(EXPENSES)
|
||||||||||||||||
Interest income
|
66
|
414
|
897
|
1,198
|
||||||||||||
Interest and other finance expenses
|
(14,994
|
)
|
(18,424
|
)
|
(50,533
|
)
|
(56,484
|
)
|
||||||||
Other income, net
|
688
|
881
|
337
|
2,117
|
||||||||||||
Total non operating expenses
|
(14,240
|
)
|
(17,130
|
)
|
(49,299
|
)
|
(53,169
|
)
|
||||||||
Income before income taxes
|
14,594
|
11,572
|
29,613
|
31,055
|
||||||||||||
Income taxes
|
(47
|
)
|
-
|
(50
|
)
|
40
|
||||||||||
Net Income
|
14,547
|
11,572
|
29,563
|
31,095
|
||||||||||||
Earnings allocated to Series B Preferred Shares
|
(957
|
)
|
(765
|
)
|
(2,747
|
)
|
(2,297
|
)
|
||||||||
Net Income available to Common Shareholders
|
$
|
13,590
|
$
|
10,807
|
$
|
26,816
|
$
|
28,798
|
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net income
|
|
14,547
|
|
11,572
|
|
29,563
|
|
31,095
|
||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
|
11,844
|
|
11,174
|
|
34,970
|
|
32,884
|
||||||||
Vessel impairment losses
|
-
|
-
|
8,497
|
-
|
||||||||||||
Loss on sale of vessels
|
244
|
-
|
244
|
-
|
||||||||||||
Amortization of deferred financing costs
|
1,109
|
755
|
3,030
|
2,244
|
||||||||||||
Amortization of original issue discount/premium on repurchase of notes
|
173
|
202
|
2,455
|
607
|
||||||||||||
Amortization of intangible liability/asset-charter agreements
|
(443
|
)
|
490
|
(88
|
)
|
1,436
|
||||||||||
Share based compensation
|
358
|
430
|
1,640
|
1,288
|
||||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Decrease/(increase) in accounts receivable and other assets
|
|
1,869
|
|
1,660
|
|
2,051
|
|
(86
|
)
|
|||||||
Decrease in inventories
|
656
|
650
|
180
|
456
|
||||||||||||
Increase in accounts payable and other liabilities
|
9,674
|
6,023
|
4,520
|
6,812
|
||||||||||||
Increase/(decrease) in related parties' balances, net
|
4,993
|
(510
|
)
|
1,533
|
(6,877
|
)
|
||||||||||
Increase/(decrease) in deferred revenue
|
1,096
|
4,506
|
(3,872
|
)
|
3,717
|
|||||||||||
Unrealized foreign exchange gain/(loss)
|
1
|
(30
|
)
|
2
|
(16
|
)
|
||||||||||
Net cash provided by operating activities
|
$
|
46,121
|
$
|
36,922
|
$
|
84,725
|
$
|
73,560
|
||||||||
Cash flows from investing activities:
|
||||||||||||||||
Acquisition of vessels
|
|
-
|
|
(15,001
|
)
|
|
(23,060
|
)
|
|
(33,497
|
)
|
|||||
Cash paid for vessel expenditure
|
(3,104
|
)
|
(7,286
|
)
|
(4,489
|
)
|
(14,062
|
)
|
||||||||
Advances for vessel acquisitions and other additions
|
(4,839
|
)
|
(1,500
|
)
|
(6,118
|
)
|
-
|
|||||||||
Cash paid for drydockings
|
(2,910
|
)
|
(2,485
|
)
|
(10,099
|
)
|
(3,182
|
)
|
||||||||
Proceeds from sale of vessels
|
2,733
|
-
|
6,852
|
(1,500
|
)
|
|||||||||||
Net cash used in investing activities
|
$
|
(8,120
|
)
|
$
|
(26,272
|
)
|
$
|
(36,914
|
)
|
$
|
(52,241
|
)
|
||||
Cash flows from financing activities:
|
||||||||||||||||
Proceeds from issuance of 2024 Notes
|
|
-
|
|
-
|
|
19,193
|
|
-
|
||||||||
Repurchase of 2022 Notes, including premium
|
(1,793
|
)
|
-
|
(59,615
|
)
|
-
|
||||||||||
Proceeds from drawdown of credit facilities
|
-
|
280,500
|
47,000
|
293,500
|
||||||||||||
Repayment of credit facilities
|
(12,890
|
)
|
(11,272
|
)
|
(46,802
|
)
|
(37,819
|
)
|
||||||||
Repayment of refinanced debt
|
-
|
(262,809
|
)
|
(44,366
|
)
|
(262,809
|
)
|
|||||||||
Deferred financing costs paid
|
7
|
(3,890
|
)
|
(962
|
)
|
(4,212
|
)
|
|||||||||
Costs relating to offering of Class A common shares
|
-
|
-
|
(76
|
)
|
-
|
|||||||||||
Proceeds from offering of Series B preferred shares, net of offering costs
|
1,854
|
-
|
6,836
|
-
|
||||||||||||
Series B Preferred Shares-dividends paid
|
(957
|
)
|
(765
|
)
|
(2,747
|
)
|
(2,297
|
)
|
||||||||
Net cash (used in)/provided by financing activities
|
$
|
(13,779
|
)
|
$
|
1,764
|
$
|
(81,539
|
)
|
$
|
(13,637
|
)
|
|||||
Increase/(decrease) in cash and cash equivalents and restricted cash
|
24,222
|
12,414
|
(33,728
|
)
|
7,682
|
|||||||||||
Cash and cash equivalents and restricted cash at beginning of the period
|
89,686
|
85,340
|
147,636
|
90,072
|
||||||||||||
Cash and cash equivalents and restricted cash at end of the period
|
$
|
113,908
|
$
|
97,754
|
$
|
113,908
|
$
|
97,754
|
||||||||
Supplementary Cash Flow Information:
|
||||||||||||||||
Cash paid for interest
|
7,273
|
10,307
|
40,371
|
45,094
|
||||||||||||
Non-cash Investing activities:
|
||||||||||||||||
Unpaid drydocking expenses
|
260
|
-
|
260
|
-
|
||||||||||||
Unpaid vessel additions
|
90
|
-
|
90
|
-
|
||||||||||||
Non-cash financing activities:
|
||||||||||||||||
Unpaid offering costs
|
-
|
856
|
-
|
856
|
|
|
|
|
|
|
Index
|
|
Page
|
|
||
INTERIM UNAUDITED CONSOLIDATED BALANCE SHEETS AS AT SEPTEMBER 30, 2020 AND DECEMBER 31, 2019
|
|
|
F-1
|
|
|
INTERIM UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019
|
|
|
F-2
|
|
|
INTERIM UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019
|
|
|
F-3
|
|
|
INTERIM UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019
|
|
|
F-4
|
|
|
NOTES TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
|
F-6
|
As of
|
||||||||||||
Note
|
September 30,
2020
|
December 31,
2019
|
||||||||||
ASSETS
|
||||||||||||
CURRENT ASSETS
|
||||||||||||
Cash and cash equivalents
|
98,964
|
138,024
|
||||||||||
Restricted cash
|
8,728
|
3,909
|
||||||||||
Accounts receivable, net
|
2,356
|
2,350
|
||||||||||
Inventories
|
5,415
|
5,595
|
||||||||||
Prepaid expenses and other current assets
|
6,075
|
8,132
|
||||||||||
Due from related parties
|
5
|
2,371
|
3,860
|
|||||||||
Total current assets
|
$
|
123,909
|
$
|
161,870
|
||||||||
NON-CURRENT ASSETS
|
||||||||||||
Vessels in operation
|
3
|
1,148,116
|
1,155,586
|
|||||||||
Advances for vessels acquisitions and other additions
|
3
|
4,047
|
10,791
|
|||||||||
Intangible assets-charter agreements
|
49
|
1,467
|
||||||||||
Deferred charges, net
|
18,858
|
16,408
|
||||||||||
Restricted cash, net of current portion
|
6,216
|
5,703
|
||||||||||
Total non-current assets
|
1,177,286
|
1,189,955
|
||||||||||
TOTAL ASSETS
|
$
|
1,301,195
|
$
|
1,351,825
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||
CURRENT LIABILITIES
|
||||||||||||
Accounts payable
|
9,469
|
9,052
|
||||||||||
Accrued liabilities
|
21,852
|
22,916
|
||||||||||
Current portion of long-term debt and deferred financing costs
|
4
|
81,313
|
87,532
|
|||||||||
Deferred revenue
|
6,115
|
9,987
|
||||||||||
Due to related parties
|
5
|
153
|
109
|
|||||||||
Total current liabilities
|
118,902
|
129,596
|
||||||||||
LONG-TERM LIABILITIES
|
||||||||||||
Long-term debt, net of current portion and deferred financing costs
|
4
|
735,509
|
809,357
|
|||||||||
Intangible liability-charter agreements
|
4,964
|
6,470
|
||||||||||
Total non-current liabilities
|
740,473
|
815,827
|
||||||||||
Total liabilities
|
$
|
859,375
|
$
|
945,423
|
||||||||
Commitments and Contingencies
|
6
|
—
|
—
|
|||||||||
SHAREHOLDERS' EQUITY
|
||||||||||||
Class A common shares - authorized
214,000,000 shares with a $0.01 par value
17,741,008 shares issued and outstanding (2019 – 17,556,738 shares)
|
7
|
177
|
175
|
|||||||||
Series B Preferred Shares - authorized
44,000 shares with a $0.01 par value
16,655 shares issued and outstanding (2019 – 14,428 shares)
|
7
|
—
|
—
|
|||||||||
Series C Preferred Shares - authorized
250,000 shares with a $0.01 par value
250,000 shares issued and outstanding (2019 - 250,000 shares)
|
7
|
3
|
3
|
|||||||||
Additional paid in capital
|
574,186
|
565,586
|
||||||||||
Accumulated deficit
|
(132,546
|
)
|
(159,362
|
)
|
||||||||
Total shareholders' equity
|
441,820
|
406,402
|
||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
1,301,195
|
$
|
1,351,825
|
Nine months ended September 30,
|
||||||||||||
Note
|
2020
|
2019
|
||||||||||
OPERATING REVENUES
|
||||||||||||
Time charter revenues (include related party revenues of $111,551 and $112,887 for each of the periods ended September 30, 2020 and 2019, respectively)
|
212,843
|
193,548
|
||||||||||
OPERATING EXPENSES:
|
||||||||||||
Vessels operating expenses (include related party vessels operating expenses of $9,381 and $ 7,006 for each of the periods ended September 30, 2020 and 2019, respectively)
|
75,124
|
63,302
|
||||||||||
Time charter and voyage expenses (include related party time charter and voyage expenses of $1,801 and $1,328 for each of the periods ended September 30, 2020 and 2019, respectively)
|
8,718
|
6,055
|
||||||||||
Depreciation and amortization
|
34,970
|
32,884
|
||||||||||
Vessel impairment losses
|
3
|
8,497
|
—
|
|||||||||
General and administrative expenses
|
6,378
|
7,083
|
||||||||||
Loss on sale of vessels
|
244
|
—
|
||||||||||
Operating Income
|
78,912
|
84,224
|
||||||||||
Interest income
|
897
|
1,198
|
||||||||||
Interest and other financial expense
|
(50,533
|
)
|
(56,484
|
)
|
||||||||
Other income, net
|
337
|
2,117
|
||||||||||
Total non-operating expense
|
(49,299
|
)
|
(53,169
|
)
|
||||||||
Income before income taxes
|
29,613
|
31,055
|
||||||||||
Income taxes
|
(50
|
)
|
40
|
|||||||||
Net Income
|
29,563
|
31,095
|
||||||||||
Earnings allocated to Series B Preferred Shares
|
7
|
(2,747
|
)
|
(2,297
|
)
|
|||||||
Net Income available to Common Shareholders
|
$
|
26,816
|
$
|
28,798
|
||||||||
Earnings per Share
|
||||||||||||
Weighted average number of Class A common shares outstanding
|
||||||||||||
Basic
|
9
|
17,669,049
|
9,939,559
|
|||||||||
Diluted
|
9
|
17,750,749
|
10,009,080
|
|||||||||
|
||||||||||||
Net Earnings per Class A common share
|
||||||||||||
Basic
|
$
|
0.88
|
$
|
1.26
|
||||||||
Diluted
|
$
|
0.87
|
$
|
1.25
|
Nine months ended September 30,
|
||||||||||||
Note
|
2020
|
2019
|
||||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
29,563
|
31,095
|
||||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Depreciation and amortization
|
34,970
|
32,884
|
||||||||||
Vessel impairment losses
|
3
|
8,497
|
—
|
|||||||||
Loss on sale of vessels
|
244
|
|||||||||||
Amortization of deferred financing costs
|
4
|
3,030
|
2,244
|
|||||||||
Amortization of original issue discount/premium on repurchase of notes
|
2,455
|
607
|
||||||||||
Amortization of intangible liability/asset-charter agreements
|
(88
|
)
|
1,436
|
|||||||||
Share based compensation
|
8
|
1,640
|
1,288
|
|||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Decrease/(increase) in accounts receivable and other assets
|
2,051
|
(86
|
)
|
|||||||||
Decrease in inventories
|
180
|
456
|
||||||||||
Increase in accounts payable and other liabilities
|
4,520
|
6,812
|
||||||||||
Decrease/(increase) in related parties' balances, net
|
1,533
|
(6,877
|
)
|
|||||||||
(Decrease)/increase in deferred revenue
|
(3,872
|
)
|
3,717
|
|||||||||
Unrealized foreign exchange loss/(gain)
|
2
|
(16
|
)
|
|||||||||
Net cash provided by operating activities
|
$
|
84,725
|
$
|
73,560
|
||||||||
Cash flows from investing activities:
|
||||||||||||
Acquisition of vessels
|
(23,060
|
)
|
(33,497
|
)
|
||||||||
Cash paid for vessel expenditures
|
(4,489
|
)
|
(14,062
|
)
|
||||||||
Advances for vessel acquisitions and other additions
|
(6,118
|
)
|
—
|
|||||||||
Cash paid for drydockings
|
(10,099
|
)
|
(3,182
|
)
|
||||||||
Proceeds from sale of vessels
|
6,852
|
(1,500
|
)
|
|||||||||
Net cash used in investing activities
|
$
|
(36,914
|
)
|
$
|
(52,241
|
)
|
||||||
Cash flows from financing activities:
|
||||||||||||
Proceeds from issuance of 2024 Notes
|
19,193
|
—
|
||||||||||
Repurchase of 2022 Notes, including premium
|
(59,615
|
)
|
—
|
|||||||||
Proceeds from drawdown of credit facilities
|
47,000
|
293,500
|
||||||||||
Repayment of credit facilities
|
(46,802
|
)
|
(37,819
|
)
|
||||||||
Repayment of refinanced debt
|
(44,366
|
)
|
(262,809
|
)
|
||||||||
Deferred financing costs paid
|
(962
|
)
|
(4,212
|
)
|
||||||||
Costs relating to offering of Class A common shares
|
(76
|
)
|
—
|
|||||||||
Proceeds from offering of Series B preferred shares, net of offering costs
|
7
|
6,836
|
—
|
|||||||||
Series B Preferred Shares-dividends paid
|
(2,747
|
)
|
(2,297
|
)
|
||||||||
Net cash used in financing activities
|
$
|
(81,539
|
)
|
$
|
(13,637
|
)
|
||||||
Net (decrease)/increase in cash and cash equivalents and restricted cash
|
(33,728
|
)
|
7,682
|
|||||||||
Cash and cash equivalents and restricted cash at beginning of the period
|
147,636
|
90,072
|
||||||||||
Cash and cash equivalents and restricted cash at end of the period
|
$
|
113,908
|
$
|
97,754
|
||||||||
Supplementary Cash Flow Information:
|
||||||||||||
Cash paid for interest
|
40,371
|
45,094
|
||||||||||
Non-cash Investing activities:
|
||||||||||||
Unpaid drydocking expenses
|
260
|
—
|
||||||||||
Unpaid vessel additions
|
90
|
—
|
||||||||||
Non-cash financing activities:
|
||||||||||||
Unpaid offering costs
|
—
|
856
|
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
|
||||||||||||||||||||
Restricted Stock Units
(Note 8)
|
—
|
—
|
—
|
—
|
—
|
—
|
429
|
—
|
429
|
|||||||||||||||||||||||||||
Net Income for the period
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
10,389
|
10,389
|
|||||||||||||||||||||||||||
Series B Preferred Shares dividend (Note 7)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(766
|
)
|
(766
|
)
|
|||||||||||||||||||||||||
Balance
at March 31, 2019
|
9,942,950
|
14,000
|
250,000
|
$
|
99
|
$
|
—
|
$
|
3
|
512,808
|
$
|
(186,496
|
)
|
326,414
|
||||||||||||||||||||||
Restricted Stock Units
(Note 8)
|
—
|
—
|
—
|
—
|
—
|
—
|
429
|
—
|
429
|
|||||||||||||||||||||||||||
Net Income for the period
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
9,134
|
$
|
9,136
|
||||||||||||||||||||||||||
Series B Preferred Shares dividend (Note 7)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(766
|
)
|
(766
|
)
|
|||||||||||||||||||||||||
Balance
at June 30, 2019
|
9,942,950
|
14,000
|
250,000
|
$
|
99
|
$
|
—
|
$
|
3
|
$
|
513,237
|
$
|
(178,128
|
)
|
$
|
335,211
|
||||||||||||||||||||
Restricted Stock Units
(Note 8)
|
—
|
—
|
—
|
—
|
—
|
—
|
430
|
—
|
430
|
|||||||||||||||||||||||||||
Issuance of Class A common shares, net of offering costs
|
—
|
—
|
—
|
—
|
—
|
—
|
(856
|
)
|
—
|
(856
|
)
|
|||||||||||||||||||||||||
Net Income for the period
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
11,572
|
11,572
|
|||||||||||||||||||||||||||
Series B Preferred Shares dividend (Note 7)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(765
|
)
|
(765
|
)
|
|||||||||||||||||||||||||
Balance
at September 30, 2019
|
9,942,950
|
14,000
|
250,000
|
$
|
99
|
$
|
—
|
$
|
3
|
$
|
512,811
|
$
|
(167,321
|
)
|
$
|
345,592
|
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, 2019
|
17,556,738
|
14,428
|
250,000
|
$
|
175
|
$
|
-
|
$
|
3
|
$
|
565,586
|
$
|
(159,362
|
)
|
$
|
406,402
|
||||||||||||||||||||
Issuance of Class A common shares, net of offering costs
|
—
|
—
|
—
|
—
|
—
|
—
|
(39
|
)
|
—
|
(39
|
)
|
|||||||||||||||||||||||||
Series B Preferred Shares dividend (Note 7)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(879
|
)
|
(879
|
)
|
|||||||||||||||||||||||||
Restricted Stock Units (Note 8)
|
—
|
—
|
—
|
—
|
—
|
—
|
429
|
—
|
429
|
|||||||||||||||||||||||||||
Net Income for the period
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
1,500
|
1,500
|
|||||||||||||||||||||||||||
Issuance of Series B Preferred shares, net of offering costs
|
—
|
1,646
|
—
|
—
|
—
|
—
|
4,003
|
—
|
4,003
|
|||||||||||||||||||||||||||
Balance
at March 31, 2020
|
17,556,738
|
16,074
|
250,000
|
$
|
175
|
$
|
-
|