Delaware
(State
or other jurisdiction of
incorporation
or organization)
11 North Water Street, Mobile,
Alabama
(Address of principal executive
offices)
|
36-2989662
(I.R.S.
Employer
Identification
No.)
36602
(Zip
Code)
|
Yes o
|
No þ
|
Yes o
|
No þ
|
Yes þ
|
No o
|
Large
accelerated filer o
|
Accelerated
filer þ
|
Non-accelerated
filer o
|
Smaller
Reporting Company o
|
Yes o
|
No þ
|
Class
Common
Stock, $1 par value,
|
Outstanding at May 31, 2009
7,406,070
shares
|
International
Shipholding Corporation
|
||||||||||||||||||||
Revenues/Voyage
Expenses Reclassification
|
||||||||||||||||||||
(All Amounts in Thousands) |
2008
|
|||||||||||||||||||
Q1
|
Q2
|
Q3
|
Q4
|
Total
|
||||||||||||||||
Revenues
(as previously reported)
|
$ | 55,804 | $ | 58,123 | $ | 66,151 | $ | 58,402 | $ | 238,480 | ||||||||||
Adjustment
|
7,901 | 3,026 | 18,198 | 14,296 | 43,421 | |||||||||||||||
Revenues
(as adjusted)
|
63,705 | 61,149 | 84,349 | 72,698 | 281,901 | |||||||||||||||
Voyage
Expenses (as previously reported)
|
44,207 | 45,876 | 44,949 | 41,787 | 176,819 | |||||||||||||||
Adjustment
|
7,901 | 3,026 | 18,198 | 14,296 | 43,421 | |||||||||||||||
Voyage
Expenses (as adjusted)
|
52,108 | 48,902 | 63,147 | 56,083 | 220,240 | |||||||||||||||
2007
|
||||||||||||||||||||
Q1
|
Q2
|
Q3
|
Q4
|
Total
|
||||||||||||||||
Revenues
(as previously reported)
|
$ | 46,573 | $ | 47,311 | $ | 51,306 | $ | 51,920 | $ | 197,110 | ||||||||||
Adjustment
|
3,704 | 9,791 | 3,001 | 4,507 | 21,003 | |||||||||||||||
Revenues
(as adjusted)
|
50,277 | 57,102 | 54,307 | 56,427 | 218,113 | |||||||||||||||
Voyage
Expenses (as previously reported)
|
34,740 | 34,922 | 38,572 | 38,778 | 147,012 | |||||||||||||||
Adjustment
|
3,704 | 9,791 | 3,001 | 4,507 | 21,003 | |||||||||||||||
Voyage
Expenses (as adjusted)
|
38,444 | 44,713 | 41,573 | 43,285 | 168,015 | |||||||||||||||
December
31,
|
||||||||||||||||||||
2006
|
2005
|
2004
|
||||||||||||||||||
Revenues
(as previously reported)
|
$ | 185,464 | $ | 168,791 | $ | 163,451 | ||||||||||||||
Adjustment
|
18,034 | 18,824 | 10,667 | |||||||||||||||||
Revenues
(as adjusted)
|
203,498 | 187,615 | 174,118 | |||||||||||||||||
Voyage
Expenses (as previously reported)
|
137,478 | 125,107 | 117,147 | |||||||||||||||||
Adjustment
|
18,034 | 18,824 | 10,667 | |||||||||||||||||
Voyage
Expenses (as adjusted)
|
155,512 | 143,931 | 127,814 | |||||||||||||||||
·
|
Part
II – Item 6. Selected Financial
Data
|
·
|
Part
II – Item 7. Management’s Discussion and Analysis of Financial Condition
and Results of Operations
|
·
|
Part
IV- Item 15. Exhibits, Financial Statement
Schedules
|
(All
Amounts in Thousands Except Share and Per Share Data)
|
Year
Ended December 31,
|
|||||||||||||||||||
2008
(1)
|
2007
|
2006
(2)
|
2005
|
2004
(3)
|
||||||||||||||||
Income
Statement Data (4):
|
||||||||||||||||||||
Revenues
|
$ | 281,901 | $ | 218,113 | $ | 203,498 | $ | 187,615 | $ | 174,118 | ||||||||||
Impairment
Loss
|
- | - | 8,866 | - | - | |||||||||||||||
Gross
Voyage Profit
|
41,693 | 28,776 | 19,054 | 24,789 | 27,071 | |||||||||||||||
Operating
Income
|
20,280 | 10,630 | 1,445 | 10,104 | 10,305 | |||||||||||||||
Income
from Continuing Operations
|
34,223 | 11,792 | 18,194 | 6,393 | 10,996 | |||||||||||||||
Net
Income Available to Common Stockholders
|
38,962 | 15,016 | 14,648 | 4,629 | 12,785 | |||||||||||||||
Basic
and Diluted Earnings Per Common Share – Continuing
Operations
|
||||||||||||||||||||
Net
Income Available to Common Stockholders - Basic
|
4.67 | 1.48 | 2.58 | 0.66 | 1.81 | |||||||||||||||
Net
Income Available to Common Stockholders - Diluted
|
4.56 | 1.41 | 2.24 | 0.66 | 1.80 | |||||||||||||||
Balance
Sheet Data:
|
||||||||||||||||||||
Working
Capital
|
50,506 | 23,189 | 3,024 | 16,120 | 17,650 | |||||||||||||||
Total
Assets
|
434,111 | 440,655 | 428,042 | 449,507 | 385,048 | |||||||||||||||
Long-Term
Debt, Less Current Maturities
|
126,841 | 130,523 | 98,984 | 161,720 | 168,622 | |||||||||||||||
(including
Capital Lease Obligations)
|
||||||||||||||||||||
Convertible
Exchangeable Preferred Stock
|
- | 37,554 | 37,554 | 37,554 | - | |||||||||||||||
Stockholders'
Investment
|
205,192 | 173,702 | 153,736 | 140,714 | 135,454 | |||||||||||||||
Other
Data:
|
||||||||||||||||||||
Net
Cash Provided by Operating Activities
|
42,185 | 20,231 | 22,981 | 23,778 | 28,989 | |||||||||||||||
Net
Cash (Used) Provided by Investing Activities
|
41,434 | (2,180 | ) | 27,532 | (61,208 | ) | (25,589 | ) | ||||||||||||
Net
Cash (Used) Provided by Financing Activities
|
(45,887 | ) | (48,221 | ) | (22,418 | ) | 43,095 | (1,768 | ) | |||||||||||
Cash
Dividends Per Share of Common Stock
|
0.50 | - | - | - | - | |||||||||||||||
Weighted
Average Shares of Common Stock Outstanding:
|
||||||||||||||||||||
Basic
|
7,314,216 | 6,360,208 | 6,116,036 | 6,083,005 | 6,082,887 | |||||||||||||||
Diluted
|
7,501,555 | 8,369,473 | 8,122,578 | 6,114,510 | 6,092,302 |
(1)
Includes income of $15.9 million from the sale of a Dry Bulk
vessel, of which we owned a 50%
share.
|
(2)
Results for 2006 reflect an Impairment Loss of approximately $8.9
million. This non-cash charge was made to
write down our investment in the
terminal located in New Orleans, Louisiana utilized in our Rail-Ferry
Service. That service relocated its U.S. operations during 2007
to Mobile, Alabama, where a new terminal has been
constructed.
|
(3)
Results for 2004 were significantly favorably impacted by certain income
tax adjustment relating to the Jobs Creation Act of
2004.
|
(4)
During 2007, the decision was made to discontinue our LASH Liner
service. As a result, the LASH Liner service results were
removed from continuing operations and reclassified into Discontinued
Operations for all years presented
above.
|
§
|
Consolidated
gross voyage profit grew from $28.8 million for the full year 2007 to
$41.7 million for the full year
2008.
|
§
|
Income
from unconsolidated entities includes a after-tax gain of $15.9 million on
the sale of a Panamax Bulk Carrier in
2008
|
§
|
Consolidated
net income increased to $39.1 million compared with $17.4 million for
2007.
|
§
|
Administrative
expenses increased by 18% from 2007 to 2008, over half of which was due to
non-ordinary charges, primarily associated with an unaffiliated shipping
company’s unsolicited conditional offer to purchase the Company’s
outstanding shares.
|
§
|
Improved
operating cash flow from $20.2 million in 2007 to $42.2 million in
2008.
|
§
|
Consolidated
cash and cash equivalents increased to $51.8 million at December 31, 2008
from $14.1 million at December 31, 2007, largely as a result of the vessel
sale noted above and increased gross voyage
revenues.
|
§
|
Working
capital ratios increased from 2007 to
2008.
|
§
|
Repurchased
471,572 shares of common stock.
|
§
|
Redemption
of $17.3 million of preferred
stock.
|
§
|
Significant
increases in our supplemental cargo
volume.
|
§
|
Partly
as a result of our 2007 sale transaction of our molten sulphur vessel
described further herein, the segment experienced a decrease of
$2.5 million in gross profits, partially offset by lower
taxes.
|
§
|
Higher
fuel cost in 2008 versus 2007.
|
§
|
Net
income from unconsolidated entities increased to $20.9 million in 2008
from $6.6 million for the 2007 full year, driven principally by the
after-tax gain on the sale of a Panamax Bulk Carrier of $15.9 million in
2008.
|
§
|
Foreign
exchange loss in 2008 on the devaluation of the Mexican peso of
approximately $400,000.
|
Time
Charter
|
Rail-Ferry
|
|||||||||||||||||||
(All
Amounts in Thousands)
|
Contracts
|
COA
|
Service
|
Other
|
Total
|
|||||||||||||||
2008
|
||||||||||||||||||||
Revenues
from External Customers
|
$ | 218,805 | $ | 19,195 | $ | 39,410 | $ | 4,491 | $ | 281,901 | ||||||||||
Voyage
Expenses
|
168,479 | 17,553 | 32,136 | 2,072 | 220,240 | |||||||||||||||
Gross
Voyage Profit
|
35,735 | 1,642 | 1,909 | 2,407 | 41,693 | |||||||||||||||
2007
|
||||||||||||||||||||
Revenues
from External Customers
|
$ | 178,336 | $ | 16,652 | $ | 21,235 | $ | 1,890 | $ | 218,113 | ||||||||||
Voyage
Expenses
|
137,828 | 10,940 | 18,406 | 841 | 168,015 | |||||||||||||||
Gross
Voyage Profit (Loss)
|
25,198 | 4,100 | (1,566 | ) | 1,044 | 28,776 |
(All amounts in
thousands)
|
Year
Ended December 31,
|
|||||||||||
A&G
Account
|
2008
|
2007
|
Variance
|
|||||||||
Wages
and Benefits
|
$ | 10,668 | $ | 10,312 | $ | 356 | ||||||
Executive
Stock Compensation
|
873 | - | 873 | |||||||||
Accounting
/ Legal Fees
|
1,528 | 1,472 | 56 | |||||||||
Office
Building Expense
|
1,159 | 1,114 | 45 | |||||||||
Other
|
5,316 | 4,450 | 865 | |||||||||
19,544 | 17,348 | 2,195 | ||||||||||
Non-Ordinary
Expenses
|
1,870 | 810 | 1,060 | |||||||||
TOTAL:
|
$ | 21,414 | $ | 18,158 | $ | 3,255 |
Time
Charter
|
Rail-Ferry
|
|||||||||||||||||||
(All
Amounts in Thousands)
|
Contracts
|
COA
|
Service
|
Other
|
Total
|
|||||||||||||||
2007
|
||||||||||||||||||||
Revenues
from External Customers
|
$ | 178,336 | $ | 16,652 | $ | 21,235 | $ | 1,890 | $ | 218,113 | ||||||||||
Voyage
Expenses
|
137,828 | 10,940 | 18,406 | 841 | 168,015 | |||||||||||||||
Gross
Voyage Profit (Loss)
|
25,198 | 4,100 | (1,566 | ) | 1,044 | 28,776 | ||||||||||||||
2006
|
||||||||||||||||||||
Revenues
from External Customers
|
$ | 166,615 | $ | 16,081 | $ | 18,427 | $ | 2,375 | $ | 203,498 | ||||||||||
Voyage
Expenses
|
124,289 | 9,522 | 19,734 | 1,967 | 155,512 | |||||||||||||||
Impairment
Loss
|
- | - | (8,866 | ) | - | (8,866 | ) | |||||||||||||
Gross
Voyage Profit (Loss)
|
28,517 | 4,142 | (14,002 | ) | 397 | 19,054 |
(All amounts in
thousands)
|
Year
Ended December 31,
|
|||||||||||
A&G
Account
|
2007
|
2006
|
Variance
|
|||||||||
Salaries
and Wages
|
$ | 6,087 | $ | 5,917 | $ | 170 | ||||||
Group
Insurance
|
1,419 | 1,382 | 37 | |||||||||
Special
Services
|
1,371 | 1,275 | 96 | |||||||||
Accounting
& Audit Fees
|
790 | 591 | 199 | |||||||||
Relocation
Expenses
|
4,993 | 838 | 4,155 | |||||||||
Other
|
3,498 | 7,606 | (4,108 | ) | ||||||||
TOTAL:
|
$ | 18,158 | $ | 17,609 | $ | 549 |
Debt
and lease obligations (000’s)
|
Total
|
2009
|
2010
|
2011
|
2012
|
2013
|
Thereafter
|
|||||||||||||||||||||
Long-term
debt (including current maturities)
|
$ | 140,126 | $ | 13,285 | $ | 58,683 | $ | 10,590 | $ | 22,980 | $ | 24,588 | $ | 10,000 | ||||||||||||||
Interest
payments
|
30,410 | 5,544 | 5,951 | 4,618 | 4,007 | 2,689 | 7,601 | |||||||||||||||||||||
Operating
leases
|
116,127 | 15,968 | 15,462 | 15,474 | 15,474 | 13,464 | 40,285 | |||||||||||||||||||||
Vessel
Commitments
|
54,800 | 13,700 | 41,100 | - | - | - | - | |||||||||||||||||||||
Total
by period
|
$ | 341,463 | $ | 48,497 | $ | 121,196 | $ | 30,682 | $ | 42,461 | $ | 40,741 | $ | 57,886 |
(i)
|
The
following financial statements of Dry Bulk Cape Holding Inc. are included
on pages A-1 through A-8 of this Form 10-K/A pursuant to Rule 3-09 of
Regulation S-X:
|
(ii)
|
The
following financial statements of International Shipholding Corporation
are included on pages F-1 through F-13 of this Form
10-K/A:
|
2.
|
Exhibits
|
(3.1)
|
Restated
Certificate of Incorporation of the Registrant (filed with the Securities
and Exchange Commission as Exhibit 3.1 to the Registrant's Form 10-Q for
the quarterly period ended September 30, 2004 and incorporated herein by
reference)
|
(3.2)
|
By-Laws
of the Registrant (filed with the Securities and Exchange Commission as
Exhibit 3.2 to the Registrant's Form 10-Q for the quarterly period ended
September 30, 2008 and incorporated herein by
reference)
|
(4.1)
|
Specimen
of Common Stock Certificate (filed as an exhibit to the Registrant's Form
8-A filed with the Securities and Exchange Commission on April 25, 1980
and incorporated herein by
reference)
|
(10.1)
|
Credit
Agreement, dated as of September 30, 2003, by and among LCI Shipholdings,
Inc. and Central Gulf Lines, Inc., as Joint and Several Borrowers, the
banks and financial institutions listed therein, as Lenders, Deutsche
Schiffsbank Aktiengesellschaft as Facility Agent and Security Trustee, DnB
NOR Bank ASA, as Documentation Agent, and the Registrant, as Guarantor
(filed with the Securities and Exchange Commission as Exhibit 10.2 to
Pre-Effective Amendment No. 2, dated December 10, 2004 and filed with the
Securities and Exchange Commission on December 10, 2004, to the
Registrant's Registration Statement on Form S-1 (Registration No.
333-120161) and incorporated herein by
reference)
|
(10.2)
|
Credit
Agreement, dated as of December 6, 2004, by and among LCI Shipholdings,
Inc., Central Gulf Lines, Inc. and Waterman Steamship Corporation, as
Borrowers, the banks and financial institutions listed therein, as
Lenders, Whitney National Bank, as Administrative Agent, Security Trustee
and Arranger, and the Registrant, Enterprise Ship Company, Inc., Sulphur
Carriers, Inc., Gulf South Shipping PTE Ltd. and CG Railway, Inc., as
Guarantors (filed with the Securities and Exchange Commission as Exhibit
10.3 to Pre-Effective Amendment No. 2, dated December 10, 2004 and filed
with the Securities and Exchange Commission on December 10, 2004, to the
Registrant's Registration Statement on Form S-1 (Registration No.
333-120161) and incorporated herein by
reference)
|
(10.3)
|
Credit
Agreement, dated September 26, 2005, by and among Central Gulf Lines,
Inc., as Borrower, the banks and financial institutions listed therein, as
Lenders, DnB NOR Bank ASA, as Facility Agent and Arranger, and Deutsche
Schiffsbank Aktiengesellschaft, as Security Trustee and Arranger, and the
Registrant, as Guarantor (filed with the Securities and Exchange
Commission as Exhibit 10.1 to the Registrant's Current Report on Form 8-K
dated September 30, 2005 and incorporated herein by
reference)
|
(10.4)
|
Credit
Agreement, dated December 13, 2005, by and among CG Railway, Inc., as
Borrower, the investment company, Liberty Community Ventures III, L.L.C.,
as Lender, and the Registrant, as Guarantor (filed with the Securities and
Exchange Commission as Exhibit 10.4 to the Registrant’s Form 10-K for the
annual period ended December 31, 2005 and incorporated herein by
reference)
|
(10.5)
|
Consulting
Agreement, dated February 18, 2008, between the Registrant and Niels W.
Johnsen (filed with the Securities and Exchange Commission as Exhibit 10.5
to the Registrant's Form 10-K for the annual period ended December 31,
2008 and incorporated herein by
reference)
|
(10.6)
|
Consulting
Agreement, dated April 30, 2007, between the Registrant and Erik F.
Johnsen (filed with the Securities and Exchange Commission as Exhibit 10.6
to the Registrant’s Form 10-K for the annual period ended December 31,
2007 and incorporated herein by
reference)
|
(10.7)
|
International
Shipholding Corporation Stock Incentive Plan (filed with the Securities
and Exchange Commission as Exhibit 10.5 to the Registrant's Form 10-K for
the annual period ended December 31, 2004 and incorporated herein by
reference)
|
(10.8)
|
Form
of Restricted Stock Agreement under the International Shipholding
Corporation Stock Incentive Plan (filed with the Securities and Exchange
Commission as Exhibit 10.1 to the Registrant's Form 8-K dated May 6, 2008
and incorporated herein by
reference)
|
(10.9)
|
International
Shipholding Corporation 2009 Stock Incentive Plan (filed with the
Securities and Exchange Commission as Exhibit 99.2 to the Registrant's
Form 8-K dated April 30, 2009 and incorporated herein by
reference)
|
(10.10)
|
Form
of Restricted Stock Agreement under the 2009 International Shipholding
Corporation Stock Incentive Plan (filed with the Securities and Exchange
Commission as Exhibit 99.2 to the Registrant's Form 8-K dated May 7, 2009
and incorporated herein by
reference)
|
(10.11)
|
Description
of Life Insurance Benefits Provided by the Registrant to Niels W. Johnsen
and Erik F. Johnsen Plan (filed with the Securities and Exchange
Commission as Exhibit 10.8 to the Registrant's Form 10-K for the annual
period ended December 31, 2004 and incorporated herein by
reference)
|
(10.12)
|
Memorandum
of Agreement of the Registrant, dated as of August 24, 2007, providing for
the Registrant’s purchase of one 6400 CEU Panamanian flagged pure car and
truck carrier (filed with the Securities and Exchange Commission as
Exhibit 10.10 to the Registrant's Form 10-K for the annual period ended
December 31, 2007 and incorporated herein by reference) (Confidential
treatment requested on certain portions of this exhibit. An
unredacted version of this exhibit has been filed separately with the
Securities and Exchange
Commission.)
|
(10.13)
|
Loan
Agreement, dated as of September 10, 2007, by and among Waterman Steamship
Corporation, as borrower, the Registrant, as guarantor, DnB NOR Bank ASA,
as facility agent and security trustee. (filed with the Securities and
Exchange Commission as Exhibit 10.11 to the Registrant's Form 10-K for the
annual period ended December 31, 2007 and incorporated herein by
reference)
|
(10.14)
|
SHIPSALES
Agreement, dated as of September 21, 2007, by and between East Gulf
Shipholding, Inc., as buyer, and Clio Marine Inc., as
seller (filed with the Securities and Exchange Commission as Exhibit 10.12
to the Registrant's Form 10-K for the annual period ended December 31,
2007 and incorporated herein by reference) (Confidential treatment
requested on certain portions of this exhibit. An unredacted
version of this exhibit has been filed separately with the Securities and
Exchange Commission.)
|
(10.15)
|
Facility
Agreement, dated as of January 23, 2008, by and among East Gulf
Shipholding, Inc., as borrower, the
Registrant, as guarantor, the banks and financial institutions party
thereto, as lenders, DnB NOR Bank ASA, as facility agent, and Deutsche
Schiffsbank Aktiengesellschaft, as security trustee (filed with the
Securities and Exchange Commission as Exhibit 10.13 to the Registrant's
Form 10-K for the annual period ended December 31, 2007 and incorporated
herein by reference)
|
(10.16)
|
Change
of Control Agreement, by and between the registrant and Niels M. Johnsen,
effective as of August 6, 2008. (filed with the Securities and Exchange
Commission as Exhibit 10.14 to the Registrant’s Form 10-Q for the
quarterly period ended June 30, 2008 and incorporated herein by
reference)
|
(10.17)
|
Change
of Control Agreement, by and between the registrant and Erik L. Johnsen,
effective as of August 6, 2008. (filed with the Securities and Exchange
Commission as Exhibit 10.15 to the Registrant’s Form 10-Q for the
quarterly period ended June 30, 2008 and incorporated herein by
reference)
|
(10.18)
|
Change
of Control Agreement, by and between the registrant and Manuel G. Estrada,
effective as of August 6, 2008. (filed with the Securities and Exchange
Commission as Exhibit 10.16 to the Registrant’s Form 10-Q for the
quarterly period ended June 30, 2008 and incorporated herein by
reference)
|
(23.1)
|
Consent
of Ernst & Young LLP*
|
(23.2)
|
Consent
of Deloitte & Touche S.p.A., Independent Registered Public Accounting
Firm*
|
(31.1)
|
Certification
of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002 *
|
(31.2)
|
Certification
of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002 *
|
(32.1)
|
Certification
of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
*
|
(32.2)
|
Certification
of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
*
|
*
|
Submitted
electronically herewith.
|
June
29, 2009
|
By
|
/s/ Manuel G. Estrada
|
DRY
BULK CAPE HOLDING INC.
|
||||||||
CONSOLIDATED
BALANCE SHEETS
|
||||||||
(In
thousands of USD)
|
||||||||
December
31, 2008
|
December
31, 2007
|
|||||||
ASSETS
|
||||||||
CURRENT
ASSETS
|
||||||||
Cash
(Note 3)
|
1,299 | 2,351 | ||||||
Trade
receivables (Note 4)
|
1,227 | 2,946 | ||||||
Receivables
from management company (Note 5)
|
737 | 1,517 | ||||||
Other
receivables (Note 6)
|
- | 195 | ||||||
Inventories
(Note 7)
|
272 | 215 | ||||||
Other
current assets
|
160 | 4 | ||||||
Total
current assets
|
3,695 | 7,228 | ||||||
Restricted
cash (Note 3)
|
1,000 | 1,000 | ||||||
Vessels,
net of accumulated depreciation (Note 8)
|
79,344 | 104,921 | ||||||
Vessels
under construction (Note 9)
|
14,178 | 13,636 | ||||||
Other
assets (Note 10)
|
1,864 | 987 | ||||||
TOTAL
ASSETS
|
100,081 | 127,772 | ||||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||
CURRENT
LIABILITIES
|
||||||||
Trade
payables
|
54 | - | ||||||
Accrued
expenses (Note 11)
|
398 | 784 | ||||||
Advances
from shareholders (Note 12)
|
260 | 260 | ||||||
Current
portion of bank borrowings (Note 13)
|
96,036 | 6,500 | ||||||
Total
current liabilities
|
96,748 | 7,544 | ||||||
Long
term bank borrowings, net of current portion (Note
13)
|
- | 96,036 | ||||||
Total
liabilities
|
96,748 | 103,580 | ||||||
SHAREHOLDERS’
EQUITY (Note 14)
|
||||||||
Common
shares
|
- | - | ||||||
Additional
paid-in capital
|
3,202 | 8,202 | ||||||
Retained
earnings
|
131 | 15,990 | ||||||
Total
shareholders’ equity
|
3,333 | 24,192 | ||||||
TOTAL
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
100,081 | 127,772 | ||||||
See
notes to consolidated financial statements.
|
(In thousands of USD) | ||||||||||||
For the year ended December 31, 2008 | For the year ended December 31, 2007 | For the year ended December 31, 2006 | ||||||||||
Shipping
income (Note 15)
|
24,203 | 28,063 | 22,761 | |||||||||
Costs
of shipping income
|
||||||||||||
Vessel
expenses (Note 16)
|
(5,682 | ) | (4,440 | ) | (4,008 | ) | ||||||
Vessel
depreciation
|
(3,665 | ) | (3,938 | ) | (4,037 | ) | ||||||
(9,347 | ) | (8,378 | ) | (8,045 | ) | |||||||
GROSS
PROFIT
|
14,856 | 19,685 | 14,716 | |||||||||
Management
fees (Note 17)
|
(576 | ) | (576 | ) | (576 | ) | ||||||
General
and administrative expenses
|
(62 | ) | (221 | ) | (90 | ) | ||||||
(638 | ) | (797 | ) | (666 | ) | |||||||
OPERATING
INCOME
|
14,218 | 18,888 | 14,050 | |||||||||
Financial
expenses, net (Note 18)
|
(3,915 | ) | (6,243 | ) | (6,426 | ) | ||||||
INCOME
FROM CONTINUING OPERATIONS
|
10,303 | 12,645 | 7,624 | |||||||||
Income
/ (loss) from discontinued operations
(Note 19)
|
31,838 | 678 | (8 | ) | ||||||||
NET INCOME | 42,141 | 13,323 | 7,616 |
Additional
|
||||||||||||||||||||
Common
|
Paid-In
|
Retained
|
Comprehensive
|
|||||||||||||||||
Stock
|
Capital
|
Earnings
|
Total
|
Income
|
||||||||||||||||
BALANCE—
January
1, 2006
|
- | 6,702 | 5,451 | 12,153 | ||||||||||||||||
Net
income
|
- | - | 7,616 | 7,616 | 7,616 | |||||||||||||||
Dividends
paid
|
- | - | (1,600 | ) | (1,600 | ) | ||||||||||||||
BALANCE—
December
31, 2006
|
- | 6,702 | 11,467 | 18,169 | ||||||||||||||||
Net
income
|
- | - | 13,323 | 13,323 | 13,323 | |||||||||||||||
Capital
increase
|
- | 1,500 | - | 1,500 | ||||||||||||||||
Dividends
paid
|
- | - | (8,800 | ) | (8,800 | ) | ||||||||||||||
BALANCE—
December
31, 2007
|
- | 8,202 | 15,990 | 24,192 | ||||||||||||||||
Net
Income
|
- | - | 42,141 | 42,141 | 42,141 | |||||||||||||||
Capital
repayment
|
- | (5,000 | ) | - | (5,000 | ) | ||||||||||||||
Dividends
paid
|
- | (58,000 | ) | (58,000 | ) | |||||||||||||||
BALANCE—
December
31, 2008
|
- | 3,202 | 131 | 3,333 | ||||||||||||||||
See
notes to consolidated financial statements.
|
DRY
BULK CAPE HOLDING INC.
|
||||||||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
||||||||||||
(In
thousands of USD)
|
||||||||||||
Year
ended December 31, 2008
|
Year
ended December 31, 2007
|
Year
ended December 31, 2006
|
||||||||||
OPERATING
ACTIVITIES:
|
||||||||||||
Net
income
|
42,141 | 13,323 | 7,616 | |||||||||
Adjustments
to reconcile net income to net cash provided
|
||||||||||||
by
operating activities:
|
||||||||||||
Depreciation
of vessels
|
4,240 | 5,137 | 5,356 | |||||||||
Amortization
of deferred dry-docking charges
|
339 | 121 | 5 | |||||||||
Amortization
of deferred financing costs
|
66 | 66 | 66 | |||||||||
Gain
on sale of a vessel
|
(31,792 | ) | - | - | ||||||||
Changes
in operating assets and liabilities:
|
||||||||||||
Other
receivables
|
195 | 1,591 | (1,475 | ) | ||||||||
Inventories
|
(57 | ) | 144 | (175 | ) | |||||||
Payments
for dry-docking charges
|
(1,453 | ) | (473 | ) | (250 | ) | ||||||
Other
assets, trade and management company receivables
|
2,343 | (2,078 | ) | (1,869 | ) | |||||||
Trade
accounts payable
|
54 | - | (285 | ) | ||||||||
Accrued
expenses and payables to related companies
|
(386 | ) | (134 | ) | (355 | ) | ||||||
Net
cash provided by operating activities
|
15,690 | 17,697 | 8,634 | |||||||||
INVESTING
ACTIVITIES:
|
||||||||||||
Payments
on vessels under construction
|
(542 | ) | (13,636 | ) | - | |||||||
Proceeds
from sale of a vessel , net of direct expenses
|
53,300 | - | - | |||||||||
Increase
in restricted cash
|
- | - | (1,000 | ) | ||||||||
Net
variation in settlement account with DryLog Group
|
- | - | 520 | |||||||||
Net
cash provided by (used in) investing activities
|
52,758 | (13,636 | ) | (480 | ) | |||||||
FINANCING
ACTIVITIES:
|
||||||||||||
Proceeds
from bank borrowings
|
- | 12,036 | - | |||||||||
Repayments
of bank borrowings
|
(6,500 | ) | (6,500 | ) | (6,500 | ) | ||||||
Capital
(repayment) / increase
|
(5,000 | ) | 1,500 | - | ||||||||
Dividends
paid
|
(58,000 | ) | (8,800 | ) | (1,600 | ) | ||||||
Net
cash used in financing activities
|
(69,500 | ) | (1,764 | ) | (8,100 | ) | ||||||
NET
(DECREASE) / INCREASE IN CASH
|
(1,052 | ) | 2,297 | 54 | ||||||||
CASH
AT BEGINNING OF YEAR
|
2,351 | 54 | - | |||||||||
CASH
AT END OF YEAR
|
1,299 | 2,351 | 54 | |||||||||
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW
|
||||||||||||
INFORMATION:
|
||||||||||||
Interest
paid
|
4,681 | 6,666 | 6,365 | |||||||||
See
notes to consolidated financial statements.
|
1.
|
ORGANIZATION
AND BUSINESS
|
a.
|
Dry Bulk Africa Ltd. (“Bulk
Africa”). Bulk Africa owns “M.V. Africa”, a bulk
carrier cape size vessel;
|
b.
|
Dry Bulk Australia Ltd (“Bulk
Australia”). Bulk Australia owns “M.V. Australia”, a bulk
carrier cape size vessel;
|
c.
|
Dry Bulk Fern Ltd (“Bulk
Fern”). Bulk Fern owns “M.V. Bulk Fern”, a bulk carrier panamax
vessel built in 1998; and
|
d.
|
Dry Bulk Cedar Ltd (“Bulk
Cedar”). Bulk Cedar owns “M.V. Bulk Cedar”, a bulk carrier
panamax vessel built in 1998.
|
2.
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
|
3.
|
CASH
AND RESTRICTED CASH
|
4.
|
TRADE
RECEIVABLES
|
5.
|
RECEIVABLES
FROM MANAGEMENT COMPANY
|
6.
|
OTHER
RECEIVABLES
|
7.
|
INVENTORIES
|
8.
|
VESSELS,
NET OF ACCUMULATED DEPRECIATION
|
2008
|
2007
|
|||||||
Cost
|
||||||||
At
January 1,
|
121,500 | 121,500 | ||||||
Sale
of M.V. Bulk Cedar
|
(24,500 | ) | - | |||||
At
December 31,
|
97,000 | 121,500 | ||||||
Accumulated
depreciation
|
||||||||
At
January 1,
|
16,579 | 11,442 | ||||||
Charge
for the year
|
4,240 | 5,137 | ||||||
Sale
of M.V. Bulk Cedar
|
(3,163 | ) | - | |||||
At
December 31,
|
17,656 | 16,579 | ||||||
Net
Book Value
|
||||||||
At
January 1,
|
104,921 | 110,058 | ||||||
At
December 31,
|
79,344 | 104,921 |
9.
|
VESSELS
UNDER CONSTRUCTION
|
10.
|
OTHER
ASSETS
|
-
|
USD
324 thousand (USD 390 thousand as of December 31, 2007) related to
unamortized deferred financing costs, including legal expenses in
connection with bank borrowings from HSH Nordbank AG,
and
|
-
|
USD
1,540 thousand (USD 597 thousand as of December 31, 2007) related to the
unamortized deferred dry-docking
charges.
|
Deferred
|
Deferred
|
Total
|
||||||||||
Financing
|
Dry-docking
|
|||||||||||
Costs
|
Charges
|
|||||||||||
Balance
as of January 1, 2007
|
456 | 245 | 701 | |||||||||
Increase
|
- | 473 | 473 | |||||||||
Amortization
|
(66 | ) | (121 | ) | (187 | ) | ||||||
Balance
as of December 31, 2007
|
390 | 597 | 987 | |||||||||
Increase
|
- | 1,453 | 1,453 | |||||||||
Amortization
|
(66 | ) | (339 | ) | (405 | ) | ||||||
Decrease
for the sale of M.V. Bulk Cedar
|
- | (171 | ) | (171 | ) | |||||||
Balance
as of December 31, 2008
|
324 | 1,540 | 1,864 |
11.
|
ACCRUED
EXPENSES
|
Current
|
Long
term
|
Total
|
||||||||||
portion
|
portion
|
|||||||||||
HSH
Nordbank AG - USD 103,500 loan facility
|
84,000 | - | 84,000 | |||||||||
HSH
Nordbank AG - USD 30,090 loan facility
|
12,036 | - | 12,036 | |||||||||
Balance
as of December 31, 2008
|
96,036 | - | 96,036 |
|
-
|
an
amount not exceeding USD 6,347 thousand per shareholder,
and
|
|
-
|
all
amounts payable from time to time by the Group under the loan agreements
to the extent to which such amounts cannot be funded by the net earnings
of the Group.
|
2008
|
2007
|
2006
|
||||||||||
Revenues
from Shipping Pool
|
- | 24,527 | 19,060 | |||||||||
Revenues
from time charters contracts
|
24,203 | 3,536 | 3,701 | |||||||||
Total
shipping income
|
24,203 | 28,063 | 22,761 |
·
|
USD
20.7 million, connected to M.V. Bulk Africa and Bulk Australia, employed
during 2008 with the related company C Transport Cape Size
Ltd.
|
·
|
USD
3.2 million, connected to the hire paid by the related company Ceres Bulk
Carriers Transportes Maritimos Lda., for M.V. Bulk
Fern;
|
·
|
USD
358 thousand, as income related to M.V. Bulk Fern, hired to third parties
at the end of 2008.
|
2008
|
2007
|
2006
|
||||||||||
Wages
|
2,408 | 2,124 | 1,944 | |||||||||
Maintenance
|
512 | 341 | 554 | |||||||||
Lube
oils
|
579 | 607 | 464 | |||||||||
Insurance
|
581 | 421 | 365 | |||||||||
Stores
|
301 | 243 | 217 | |||||||||
Spare
parts
|
450 | 226 | 207 | |||||||||
Certificates
& Class
|
198 | 81 | 89 | |||||||||
Bunker
|
247 | - | - | |||||||||
Amortization
of deferred dry-docking charges
|
315 | 71 | - | |||||||||
Sundry
expenses
|
91 | 326 | 168 | |||||||||
Total
|
5,682 | 4,440 | 4,008 |
17.
|
MANAGEMENT
FEES
|
2008
|
2007
|
2006
|
||||||||||
Unisea
Shipping Ltd
|
432 | 432 | 432 | |||||||||
DryLog
Ltd
|
144 | 144 | 144 | |||||||||
Total
|
576 | 576 | 576 |
18.
|
FINANCIAL
EXPENSES, NET
|
2008
|
2007
|
2006
|
||||||||||
Interest
income
|
136 | 149 | 62 | |||||||||
Loan
interest expenses
|
(3,985 | ) | (6,326 | ) | (6,422 | ) | ||||||
Amortization
of deferred financing costs
|
(66 | ) | (66 | ) | (66 | ) | ||||||
Total
financial expenses, net
|
(3,915 | ) | (6,243 | ) | (6,426 | ) |
19.
|
INCOME
/ (LOSS) FROM DISCONTINUED
OPERATIONS
|
2008
|
2007
|
2006
|
||||||||||
Shipping
income
|
1,781 | 3,709 | 3,044 | |||||||||
Vessel
expenses
|
(992 | ) | (1,640 | ) | (1,541 | ) | ||||||
Vessel
depreciation
|
(575 | ) | (1,199 | ) | (1,319 | ) | ||||||
Management
fees
|
(168 | ) | (192 | ) | (192 | ) | ||||||
Net
gain on the sale of the vessel
|
31,792 | - | - | |||||||||
Total
income / (loss) from discontinued operations
|
31,838 | 678 | (8 | ) |
20.
|
RELATED
PARTIES
|
Year
|
USD/000
|
|||
2009
|
20,965 | |||
2010
|
25,420 | |||
Total
|
46,385 |
INTERNATIONAL SHIPHOLDING CORPORATION
|
||||||||||||
CONSOLIDATED
STATEMENTS OF INCOME
|
||||||||||||
(All
Amounts in Thousands Except Share Data)
|
||||||||||||
Year
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Revenues
|
$ | 281,901 | $ | 218,113 | $ | 203,498 | ||||||
Operating
Expenses:
|
||||||||||||
Voyage
Expenses
|
220,240 | 168,015 | 155,512 | |||||||||
Vessel
and Barge Depreciation
|
19,968 | 21,322 | 20,066 | |||||||||
Impairment
Loss
|
- | - | 8,866 | |||||||||
Gross
Voyage Profit
|
41,693 | 28,776 | 19,054 | |||||||||
Administrative
and General Expenses
|
21,414 | 18,158 | 17,609 | |||||||||
Gain
on Sale of Other Assets
|
- | (12 | ) | - | ||||||||
Operating
Income
|
20,279 | 10,630 | 1,445 | |||||||||
Interest
and Other:
|
||||||||||||
Interest
Expense
|
6,886 | 9,762 | 11,147 | |||||||||
Loss
on Redemption of Preferred Stock
|
1,371 | - | - | |||||||||
Gain
(Loss) on Sale of Investment
|
148 | (352 | ) | (23,058 | ) | |||||||
Investment
Income
|
(525 | ) | (2,592 | ) | (1,397 | ) | ||||||
Loss
on Early Extinguishment of Debt
|
- | - | 248 | |||||||||
7,880 | 6,818 | (13,060 | ) | |||||||||
Income
from Continuing Operations Before (Benefit) Provision for
|
||||||||||||
Income
Taxes and Equity in Net Income of Unconsolidated Entities
|
12,399 | 3,812 | 14,505 | |||||||||
(Benefit)
Provision for Income Taxes:
|
||||||||||||
Current
|
- | 120 | 113 | |||||||||
Deferred
|
(910 | ) | (1,570 | ) | 919 | |||||||
State
|
33 | 86 | 4 | |||||||||
(877 | ) | (1,364 | ) | 1,036 | ||||||||
Equity
in Net Income of Unconsolidated
|
||||||||||||
Entities
(Net of Applicable Taxes)
|
20,946 | 6,616 | 4,725 | |||||||||
Income
from Continuing Operations
|
34,223 | 11,792 | 18,194 | |||||||||
Income
(Loss) from Discontinued Operations:
|
||||||||||||
Income
(Loss) before Provision (Benefit) for Income Taxes
|
220 | (4,238 | ) | (8,440 | ) | |||||||
Gain
on Sale of Liner Assets
|
4,607 | 9,880 | 5,125 | |||||||||
(Provision)
Benefit for Income Taxes
|
- | (18 | ) | 2,169 | ||||||||
Net
Income (Loss) from Discontinued Operations
|
4,827 | 5,624 | (1,146 | ) | ||||||||
Net
Income
|
$ | 39,050 | $ | 17,416 | $ | 17,048 | ||||||
Preferred
Stock Dividends
|
88 | 2,400 | 2,400 | |||||||||
Net
Income Available to Common Stockholders
|
$ | 38,962 | $ | 15,016 | $ | 14,648 | ||||||
Basic
and Diluted Earnings Per Common Share:
|
||||||||||||
Net
Income (Loss) Available to Common Stockholders - Basic
|
||||||||||||
Continuing
Operations
|
$ | 4.67 | $ | 1.48 | $ | 2.58 | ||||||
Discontinued
Operations
|
0.66 | 0.88 | (0.18 | ) | ||||||||
$ | 5.33 | $ | 2.36 | $ | 2.40 | |||||||
Net
Income (Loss) Available to Common Stockholders - Diluted
|
||||||||||||
Continuing
Operations
|
$ | 4.56 | $ | 1.41 | $ | 2.24 | ||||||
Discontinued
Operations
|
0.64 | 0.67 | (0.14 | ) | ||||||||
$ | 5.20 | $ | 2.08 | $ | 2.10 | |||||||
Weighted
Average Shares of Common Stock Outstanding:
|
||||||||||||
Basic
|
7,314,216 | 6,360,208 | 6,116,036 | |||||||||
Diluted
|
7,501,555 | 8,369,473 | 8,122,578 |
INTERNATIONAL SHIPHOLDING CORPORATION
|
||||||||
CONSOLIDATED
BALANCE SHEETS
|
||||||||
(All
Amounts in Thousands Except Share Data)
|
||||||||
December
31,
|
December
31,
|
|||||||
ASSETS
|
2008
|
2007
|
||||||
Current
Assets:
|
||||||||
Cash
and Cash Equivalents
|
$ | 51,835 | $ | 14,103 | ||||
Marketable
Securities
|
2,707 | 5,578 | ||||||
Accounts
Receivable, Net of Allowance for Doubtful Accounts
|
||||||||
of
$132 and $216 in 2008 and 2007, respectively:
|
||||||||
Traffic
|
14,581 | 9,637 | ||||||
Agents'
|
2,712 | 1,804 | ||||||
Other
|
5,567 | 9,233 | ||||||
Net
Investment in Direct Financing Leases
|
7,874 | 7,391 | ||||||
Other
Current Assets
|
2,187 | 2,327 | ||||||
Material
and Supplies Inventory
|
2,842 | 2,665 | ||||||
Assets
Held for Disposal
|
- | 9,105 | ||||||
Total
Current Assets
|
90,305 | 61,843 | ||||||
Investment
in Unconsolidated Entities
|
5,803 | 16,326 | ||||||
Net
Investment in Direct Financing Leases
|
108,973 | 107,208 | ||||||
Vessels,
Property, and Other Equipment, at Cost:
|
||||||||
Vessels
and Barges
|
338,729 | 335,511 | ||||||
Leasehold
Improvements
|
26,128 | 29,530 | ||||||
Furniture
and Equipment
|
5,023 | 8,086 | ||||||
369,880 | 373,127 | |||||||
Less
- Accumulated Depreciation
|
(166,931 | ) | (147,484 | ) | ||||
202,949 | 225,643 | |||||||
Other
Assets:
|
||||||||
Deferred
Charges, Net of Accumulated Amortization
|
12,639 | 15,337 | ||||||
of
$17,018 and $9,781 in 2008 and 2007, respectively
|
||||||||
Acquired
Contract Costs, Net of Accumulated Amortization
|
1,819 | 3,274 | ||||||
of
$28,706 and $27,251 in 2008 and 2007, respectively
|
||||||||
Due
from Related Parties
|
6,195 | 5,897 | ||||||
Other
|
5,428 | 5,127 | ||||||
26,081 | 29,635 | |||||||
$ | 434,111 | $ | 440,655 | |||||
INTERNATIONAL
SHIPHOLDING CORPORATION
|
||||||||
CONSOLIDATED
BALANCE SHEETS
|
||||||||
(All
Amounts in Thousands Except Share Data)
|
||||||||
December
31,
|
December
31,
|
|||||||
2008
|
2007
|
|||||||
LIABILITIES
AND STOCKHOLDERS' INVESTMENT
|
||||||||
Current
Liabilities:
|
||||||||
Current
Maturities of Long-Term Debt
|
$ | 13,285 | $ | 12,681 | ||||
Accounts
Payable and Accrued Liabilities
|
26,514 | 23,546 | ||||||
Current
Liabilities related to Assets Held for Disposal
|
- | 2,427 | ||||||
Total
Current Liabilities
|
39,799 | 38,654 | ||||||
Long-Term
Debt, Less Current Maturities
|
126,841 | 130,523 | ||||||
Other
Long-Term Liabilities:
|
||||||||
Deferred
Income Taxes
|
4,893 | 9,072 | ||||||
Lease
Incentive Obligation
|
7,314 | 13,789 | ||||||
Other
|
50,072 | 37,361 | ||||||
62,279 | 60,222 | |||||||
Commitments
and Contingent Liabilities
|
||||||||
Convertible
Exchangeable Preferred Stock
|
- | 37,554 | ||||||
Stockholders'
Investment:
|
||||||||
Common
Stock, $1.00 Par Value, 10,000,000 Shares Authorized,
|
8,390 | 7,193 | ||||||
7,183,570
And 7,192,630 Shares Issued at December 31, 2008 and
|
||||||||
December
31, 2007, Respectively
|
||||||||
Additional
Paid-In Capital
|
81,443 | 60,177 | ||||||
Retained
Earnings
|
152,379 | 117,008 | ||||||
Treasury
Stock, 1,165,015 and 673,443 Shares, at Cost, at December
31, 2008 and 2007, Respectively
|
(20,172 | ) | (8,704 | ) | ||||
Accumulated
Other Comprehensive Loss
|
(16,848 | ) | (1,972 | ) | ||||
205,192 | 173,702 | |||||||
$ | 434,111 | $ | 440,655 | |||||
CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS' INVESTMENT
|
||||||||||||||||||||||||
(All
Amounts in Thousands)
|
||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||
Additional
|
Other
|
|||||||||||||||||||||||
Common
|
Paid-In
|
Retained
|
Treasury
|
Comprehensive
|
||||||||||||||||||||
Stock
|
Capital
|
Earnings
|
Stock
|
(Loss)
Income
|
Total
|
|||||||||||||||||||
Balance
at December 31, 2005
|
$ | 6,760 | $ | 54,495 | $ | 87,344 | $ | (8,704 | ) | $ | 819 | $ | 140,714 | |||||||||||
Comprehensive
Income:
|
||||||||||||||||||||||||
Net
Income
|
- | - | 17,048 | - | - | 17,048 | ||||||||||||||||||
Other
Comprehensive Income (Loss):
|
||||||||||||||||||||||||
Recognition
of Unrealized Holding Gain on Marketable
|
||||||||||||||||||||||||
Securities,
Net of Deferred Taxes of ($140)
|
- | - | - | - | (206 | ) | (206 | ) | ||||||||||||||||
Unrealized
Holding Gain on Marketable Securities,
|
||||||||||||||||||||||||
Net
of Deferred Taxes of $43
|
- | - | - | - | 219 | 219 | ||||||||||||||||||
Net
Change in Fair Value of Derivatives, Net of
|
||||||||||||||||||||||||
Deferred
Taxes of $176
|
- | - | - | - | 656 | 656 | ||||||||||||||||||
Total
Comprehensive Income
|
17,717 | |||||||||||||||||||||||
Adjustment
to Initially Apply SFAS No. 158, Net of
|
||||||||||||||||||||||||
Deferred
Taxes of ($8)
|
- | - | - | - | (2,760 | ) | (2,760 | ) | ||||||||||||||||
Preferred
Stock Dividends
|
- | - | (2,400 | ) | - | - | (2,400 | ) | ||||||||||||||||
Options
Exercised
|
33 | 432 | - | - | - | 465 | ||||||||||||||||||
Balance
at December 31, 2006
|
$ | 6,793 | $ | 54,927 | $ | 101,992 | $ | (8,704 | ) | $ | (1,272 | ) | $ | 153,736 | ||||||||||
Comprehensive
Income:
|
||||||||||||||||||||||||
Net
Income
|
- | - | 17,416 | - | - | 17,416 | ||||||||||||||||||
Other
Comprehensive Income (Loss):
|
- | |||||||||||||||||||||||
Recognition
of Unrealized Holding Gain on Marketable
|
||||||||||||||||||||||||
Securities,
Net of Deferred Taxes of ($48)
|
- | - | - | - | (89 | ) | (89 | ) | ||||||||||||||||
Unrealized
Holding Gain on Marketable Securities,
|
||||||||||||||||||||||||
Net
of Deferred Taxes of ($86)
|
- | - | - | - | (160 | ) | (160 | ) | ||||||||||||||||
Net
Change in Fair Value of Derivatives, Net of
|
||||||||||||||||||||||||
Deferred
Taxes of ($325)
|
- | - | - | - | (2,177 | ) | (2,177 | ) | ||||||||||||||||
Change
in Funding Status of Benefit Plans, Net of
|
||||||||||||||||||||||||
Deferred
Taxes of $12
|
- | - | - | - | 1,726 | 1,726 | ||||||||||||||||||
Total
Comprehensive Income
|
16,716 | |||||||||||||||||||||||
Preferred
Stock Dividends
|
- | - | (2,400 | ) | - | - | (2,400 | ) | ||||||||||||||||
Options
Exercised
|
400 | 5,250 | - | - | - | 5,650 | ||||||||||||||||||
Balance
at December 31, 2007
|
$ | 7,193 | $ | 60,177 | $ | 117,008 | $ | (8,704 | ) | $ | (1,972 | ) | $ | 173,702 | ||||||||||
Comprehensive
Income:
|
||||||||||||||||||||||||
Net
Income
|
- | - | 39,050 | - | - | 39,050 | ||||||||||||||||||
Other
Comprehensive Income (Loss):
|
- | |||||||||||||||||||||||
Unrealized
Holding Loss on Marketable Securities,
|
||||||||||||||||||||||||
Net
of Deferred Taxes of ($465)
|
- | - | - | - | (848 | ) | (848 | ) | ||||||||||||||||
Net
Change in Fair Value of Derivatives, Net of
|
||||||||||||||||||||||||
Deferred
Taxes of ($1,275)
|
- | - | - | - | (9,809 | ) | (9,809 | ) | ||||||||||||||||
Change
in Funding Status of Benefit Plans, Net of
|
||||||||||||||||||||||||
Deferred
Taxes of $970
|
- | - | - | - | (4,219 | ) | (4,219 | ) | ||||||||||||||||
Total
Comprehensive Income
|
24,174 | |||||||||||||||||||||||
Compensation
Expense - Restricted Stock
|
41 | 716 | - | - | - | 757 | ||||||||||||||||||
Repurchase
of Common Stock
|
- | - | - | (11,468 | ) | - | (11,468 | ) | ||||||||||||||||
Preferred
Stock Dividends
|
- | - | (88 | ) | - | - | (88 | ) | ||||||||||||||||
Common
Stock Dividends
|
- | - | (3,591 | ) | - | - | (3,591 | ) | ||||||||||||||||
Preferred
Stock Conversion
|
1,156 | 20,550 | - | - | - | 21,706 | ||||||||||||||||||
Balance
at December 31, 2008
|
$ | 8,390 | $ | 81,443 | $ | 152,379 | $ | (20,172 | ) | $ | (16,848 | ) | $ | 205,192 |
INTERNATIONAL SHIPHOLDING CORPORATION
|
||||||||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
||||||||||||
(All
Amounts in Thousands)
|
||||||||||||
Twelve
Months Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Cash
Flows from Operating Activities:
|
||||||||||||
Net
Income
|
$ | 39,050 | $ | 17,416 | $ | 17,048 | ||||||
Adjustments
to Reconcile Net Income to Net Cash Provided by
|
||||||||||||
Operating
Activities:
|
||||||||||||
Depreciation
|
20,351 | 23,969 | 24,417 | |||||||||
Amortization
of Deferred Charges and Other Assets
|
8,566 | 9,779 | 7,954 | |||||||||
Benefit
for Federal Income Taxes
|
(910 | ) | (1,468 | ) | (1,137 | ) | ||||||
Impairment
Loss
|
- | - | 8,866 | |||||||||
Loss
on Early Redemption of Preferred Stock
|
1,371 | - | - | |||||||||
Equity
in Net Income of Unconsolidated Entities
|
(20,946 | ) | (6,616 | ) | (4,725 | ) | ||||||
Distributions
from Unconsolidated Entities
|
6,000 | 4,400 | 1,450 | |||||||||
Proceeds
from Lease Incentive Obligations
|
- | - | 2,779 | |||||||||
Gain
on Sale of Liner Assets
|
(4,607 | ) | (11,280 | ) | (5,125 | ) | ||||||
Loss
on Early Extinguishment of Debt
|
- | - | 248 | |||||||||
Loss
(Gain) on Sale of Investments
|
148 | (352 | ) | (23,058 | ) | |||||||
Deferred
Drydocking Charges
|
(4,171 | ) | (9,810 | ) | (8,432 | ) | ||||||
Changes
in:
|
||||||||||||
Accounts
Receivable
|
(3,202 | ) | 1,322 | 12,349 | ||||||||
Inventories
and Other Current Assets
|
(72 | ) | (856 | ) | 1,416 | |||||||
Other
Assets
|
(386 | ) | (187 | ) | 2,767 | |||||||
Accounts
Payable and Accrued Liabilities
|
1,798 | (4,868 | ) | (12,079 | ) | |||||||
Federal
Income Taxes Payable
|
- | - | (544 | ) | ||||||||
Other
Long-Term Liabilities
|
(805 | ) | (1,218 | ) | (1,213 | ) | ||||||
Net
Cash Provided by Operating Activities
|
42,185 | 20,231 | 22,981 | |||||||||
Cash
Flows from Investing Activities:
|
||||||||||||
Principal
payments received under Direct Financing Leases
|
7,497 | 5,129 | 3,668 | |||||||||
Capital
Improvements to Vessels, Leasehold Improvements, and Other
Asset
|
(4,024 | ) | (56,072 | ) | (21,799 | ) | ||||||
Proceeds
from Sale of Liner Assets
|
10,818 | 48,750 | 12,026 | |||||||||
Distributions
from Unconsolidated Entities
|
25,500 | - | - | |||||||||
Purchase
of and Proceeds from Marketable Securities
|
1,618 | 1,072 | 552 | |||||||||
Investment
in Unconsolidated Entities
|
- | (1,004 | ) | (1,336 | ) | |||||||
Return
of Capital of Unconsolidated Entity
|
- | - | 2,480 | |||||||||
Proceeds
from Sale of Unconsolidated Entity
|
- | - | 27,490 | |||||||||
Decrease
in Restricted Cash Account
|
- | - | 6,541 | |||||||||
Decrease
(Increase) in Related Party Note Receivables
|
25 | (55 | ) | (2,090 | ) | |||||||
Net
Cash Provided by (Used in) Investing Activities
|
41,434 | (2,180 | ) | 27,532 | ||||||||
Cash
Flows from Financing Activities:
|
||||||||||||
Redemption
of Preferred Stock
|
(17,306 | ) | - | - | ||||||||
Common
Stock Repurchase
|
(11,468 | ) | - | - | ||||||||
Proceeds
from Issuance of Common Stock
|
- | 5,650 | 465 | |||||||||
Proceeds
from Issuance of Debt
|
- | - | 10,000 | |||||||||
Repayment
of Debt
|
(12,950 | ) | (50,253 | ) | (32,761 | ) | ||||||
Additions
to Deferred Financing Charges
|
(484 | ) | (590 | ) | (175 | ) | ||||||
Preferred
Stock Dividends Paid
|
(88 | ) | (2,400 | ) | (2,400 | ) | ||||||
Common
Stock Dividends Paid
|
(3,591 | ) | - | - | ||||||||
Reimbursements
for Leasehold Improvements
|
- | - | 2,613 | |||||||||
Other
Financing Activities
|
- | (628 | ) | (160 | ) | |||||||
Net
Cash Used by Financing Activities
|
(45,887 | ) | (48,221 | ) | (22,418 | ) | ||||||
Net
(Decrease)/Increase in Cash and Cash Equivalents
|
37,732 | (30,170 | ) | 28,095 | ||||||||
Cash
and Cash Equivalents at Beginning of Year
|
14,103 | 44,273 | 16,178 | |||||||||
Cash
and Cash Equivalents at End of Year
|
$ | 51,835 | $ | 14,103 | $ | 44,273 |
Years
|
||||
6
Pure Car/Truck Carriers
|
20
|
|||
1
Coal Carrier
|
15
|
|||
5
Other Vessels *
|
25
|
|||
Leasehold
Improvements
|
10-20
|
|||
Other
Equipment
|
3-12
|
|||
Furniture
and Equipment
|
3-10
|
December
31,
|
||||||||
(All
Amounts in Thousands)
|
2008
|
2007
|
||||||
Pure
Car/Truck Carriers
|
$ | 97,024 | $ | 97,024 | ||||
Special
Purpose Vessels
|
107,672 | 106,880 | ||||||
Coal
Carrier
|
92,646 | 92,201 | ||||||
Container
Ships
|
19,911 | 19,911 | ||||||
Breakbulk
Ship
|
5,632 | 5,632 | ||||||
Non-vessel
related property, plant and equipment
|
31,151 | 37,616 | ||||||
Less: Accumulated
depreciation
|
(166,931 | ) | (147,484 | ) | ||||
187,105 | 211,780 | |||||||
Construction-in-progress
(vessel and non-vessel)
|
15,844 | 13,863 | ||||||
$ | 202,949 | $ | 225,643 |
( in
thousands)
|
Interest
Rate
|
Total
Principal Due
|
|||||||
December
31,
|
December
31,
|
Maturity
|
December
31,
|
December
31,
|
|||||
Description
|
2008
|
2007
|
Date
|
2008
|
2007
|
||||
Secured:
|
|||||||||
Notes
Payable – Variable Rate
|
*
|
4.4763%
|
6.200%
|
2015
|
$ 23,334
|
$ 26,000
|
|||
Notes
Payable – Variable Rate
|
*
|
0.9300%
|
4.3219%
|
2012
|
13,580
|
13,720
|
|||
Notes
Payable – Variable Rate
|
**
|
5.0119%
|
6.18-6.45%
|
2013
|
51,793
|
59,261
|
|||
Notes
Payable – Variable Rate
|
*
|
1.7475%
|
1.8713%
|
2010
|
51,419
|
44,223
|
|||
Line
of Credit
|
N/A
|
N/A
|
2010
|
-
|
-
|
||||
140,126
|
143,204
|
||||||||
Less
Current Maturities
|
(13,285)
|
(12,681)
|
|||||||
$ 126,841
|
$ 130,523
|
(All
Amounts in Thousands)
|
Pension
Plan
|
Postretirement
Benefits
|
||||||
Year
Ended December 31,
|
Year
Ended December 31,
|
|||||||
2008
|
2007
|
2008
|
2007
|
|||||
Change
in Benefit Obligation
|
||||||||
Benefit
Obligation at Beginning of Year
|
$ 23,063
|
$ 23,684
|
$ 7,267
|
$ 8,048
|
||||
Service
Cost
|
597
|
616
|
18
|
25
|
||||
Interest
Cost
|
1,415
|
1,347
|
428
|
439
|
||||
Plan
Amendments
|
(34)
|
-
|
-
|
-
|
||||
Actuarial
(Gain) Loss
|
(1,244)
|
(1,057)
|
(392)
|
(38)
|
||||
Benefits
Paid and Expected Expenses
|
(1,196)
|
(1,138)
|
(614)
|
(620)
|
||||
Medicare
Part D Reimbursements
|
-
|
-
|
57
|
-
|
||||
Curtailments
|
-
|
(409)
|
-
|
(587)
|
||||
Special
Termination Benefits
|
-
|
20
|
-
|
-
|
||||
Benefit
Obligation at End of Year
|
$ 22,601
|
$ 23,063
|
$ 6,764
|
$ 7,267
|
||||
Change
in Plan Assets
|
||||||||
Fair
Value of Plan Assets at Beginning of Year
|
$ 23,299
|
$ 22,432
|
$ -
|
$ -
|
||||
Actual
Return on Plan Assets
|
(5,211)
|
1,399
|
-
|
-
|
||||
Employer
Contribution
|
1,200
|
600
|
557
|
620
|
||||
Benefits
Paid and Actual Expenses
|
(1,188)
|
(1,132)
|
(614)
|
(620)
|
||||
Medicare
Part D reimbursements
|
-
|
-
|
57
|
-
|
||||
Fair
Value of Plan Assets at End of Year
|
$ 18,100
|
$ 23,299
|
$ -
|
$ -
|
||||
Funded
Status
|
$ (4,501)
|
$ 236
|
$ (6,764)
|
$ (7,267)
|
||||
Key
Assumptions
|
||||||||
Discount
Rate
|
6.75%
|
6.25%
|
6.75%
|
6.25%
|
||||
Rate
of Compensation Increase
|
4.50%
|
5.00%
|
N/A
|
N/A
|
(All
Amounts in Thousands)
|
Pension
Plan
|
Postretirement
Benefits
|
|||||||||||||||
Year
Ended December 31,
|
Year
Ended December 31,
|
||||||||||||||||
2008
|
2007
|
2008
|
2007
|
||||||||||||||
Prior
Service Cost
|
$ | 32 | $ | - | $ | 79 | $ | 91 | |||||||||
Net
Loss
|
(6,968 | ) | (1,217 | ) | 488 | 96 | |||||||||||
Change
in Other Comprehensive Income
|
$ | (6,936 | ) | $ | (1,217 | ) | $ | 567 | $ | 187 |
(All
Amounts in Thousands)
|
Pension
Plan
|
Postretirement
Benefits
|
||||||||||
Year
Ended December 31,
|
Year
Ended December 31,
|
|||||||||||
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
|||||||
Components
of Net Periodic Benefit Cost
|
||||||||||||
Service
Cost
|
$ 597
|
$ 616
|
$ 676
|
$ 18
|
$ 25
|
$ 63
|
||||||
Interest
Cost
|
1,415
|
1,347
|
1,311
|
428
|
439
|
453
|
||||||
Expected
Return on Plan Assets
|
(1,792)
|
(1,719)
|
(1,534)
|
-
|
-
|
-
|
||||||
Amortization
of Prior Service Cost
|
(2)
|
-
|
-
|
(12)
|
(14)
|
(22)
|
||||||
Amortization
of Net Actuarial Loss
|
-
|
12
|
162
|
-
|
-
|
-
|
||||||
Net
Periodic Benefit Cost
|
$ 218
|
$ 256
|
$ 615
|
$ 434
|
$ 450
|
$ 494
|
||||||
Special
Termination Benefits
|
-
|
20
|
10
|
-
|
-
|
-
|
||||||
Curtailment
Gain
|
-
|
-
|
-
|
-
|
(38)
|
(45)
|
||||||
Net
Periodic Benefit Cost After Special
Termination
Benefits and Curtailment Gain
|
$ 218
|
$ 276
|
$ 625
|
$ 434
|
$ 412
|
$ 449
|
||||||
Key
Assumptions
|
||||||||||||
Discount
Rate
|
6.25%
|
5.75%
|
5.75%
|
6.75%
|
6.25%
|
5.75%
|
||||||
Expected
Return on Plan Assets
|
7.75%
|
7.75%
|
7.75%
|
N/A
|
N/A
|
N/A
|
||||||
Rate
of Compensation Increase
|
5.00%
|
5.00%
|
5.00%
|
N/A
|
N/A
|
N/A
|
||||||
(All
Amounts in Thousands)
|
1%
Increase
|
1%
Decrease
|
|||||
Change
in total service and interest cost components
|
|||||||
for
the year ended December 31, 2008
|
$
41
|
$
(35)
|
|||||
Change
in postretirement benefit obligation as of December 31,
2008
|
657
|
(558)
|
(All
Amounts in Thousands)
|
||||||||||
Fiscal
Year Beginning
|
Pension
Plan
|
Postretirement
Benefits
|
||||||||
2009
|
$ | 1,250 | $ | 535 | ||||||
2010
|
1,306 | 548 | ||||||||
2011
|
1,395 | 554 | ||||||||
2012
|
1,420 | 548 | ||||||||
2013
|
1,483 | 551 | ||||||||
2014-2018
|
8,348 | 2,629 | ||||||||
December
31,
|
December
31,
|
|||||||
(All
Amounts in Thousands)
|
2008
|
2007
|
||||||
Liabilities:
|
||||||||
Fixed
Assets
|
$ | 19,063 | $ | 15,395 | ||||
Deferred
Charges
|
3,316 | 2,338 | ||||||
Unterminated Voyage Revenue/Expense | 71 | 72 | ||||||
Insurance and Claims Reserve | 68 | 471 | ||||||
Other
Liabilities
|
1,723 | 6,570 | ||||||
Total
Liabilities
|
24,241 | 24,846 | ||||||
Assets:
|
||||||||
Post-Retirement
Benefits
|
(77 | ) | (401 | ) | ||||
Alternative
Minimum Tax Credit
|
(4,577 | ) | (4,577 | ) | ||||
Net
Operating Loss Carryforward/Unutilized Deficit
|
(8,541 | ) | (7,369 | ) | ||||
Work
Opportunity Credit
|
(60 | ) | (293 | ) | ||||
Other
Assets
|
(6,093 | ) | (3,134 | ) | ||||
Total
Assets
|
(19,348 | ) | (15,774 | ) | ||||
Total
Deferred Tax Liability, Net
|
$ | 4,893 | $ | 9,072 | ||||
2008
|
2007
|
2006
|
||||||||||
Statutory
Rate
|
35.00 | % | 35.00 | % | 35.00 | % | ||||||
State
Income Taxes
|
0.36 | % | 2.26 | % | 0.03 | % | ||||||
Effect
of Tonnage Tax Rate
|
(42.76 | )% | (50.00 | )% | (20.99 | )% | ||||||
Foreign Earnings-Indefinitely Reinvested | (6.84 | )% | (26.39 | )% | - | |||||||
Foreign Earnings | 4.23 | % | 12.90 | % | - | |||||||
Change
in Valuation Allowance
|
- | (10.92 | )% | (11.92 | )% | |||||||
Permanent
Differences and Other, Primarily Non-deductible
Expenditures
|
2.94 | % | 1.36 | % | 5.02 | % | ||||||
(7.07 | )% | (35.79 | )% | 7.14 | % |
Receivables
Under
Financing
Leases
|
||
(All
Amounts in Thousands)
|
||
Year
Ended December 31,
|
||
2009
|
$ 17,528
|
|
2010
|
62,043
|
|
2011
|
13,096
|
|
2012
|
13,117
|
|
2013
|
13,097
|
|
Thereafter
Total
Minimum Lease Payments Receivable
|
46,955
|
|
165,836
|
||
Estimated
Residual Value of Leased Property
|
8,051
|
|
Less
Unearned Income
|
(57,040)
|
|
Total
Net Investment in Direct Financing Leases
|
116,847
|
|
Current
Portion
|
(7,874)
|
|
Long-Term
Net Investment in Direct Financing Leases at December 31,
2008
|
$ 108,973
|
|
Payments
Under Operating Leases
|
||||||||||||||||
(All
Amounts in Thousands)
|
U.S.
Flag Vessels
|
International Flag
Vessel
|
Other
Leases
|
Total
|
||||||||||||
Year
Ended December 31,
|
||||||||||||||||
2009
|
$ | 8,722 | $ | 6,340 | $ | 906 | $ | 15,968 | ||||||||
2010
|
8,203 | 6,340 | 919 | 15,462 | ||||||||||||
2011
|
8,203 | 6,340 | 931 | 15,474 | ||||||||||||
2012
|
8,203 | 6,340 | 931 | 15,474 | ||||||||||||
2013
|
6,170 | 6,340 | 954 | 13,464 | ||||||||||||
Thereafter
|
13,361 | 15,850 | 11,074 | 40,285 | ||||||||||||
Total
Future Minimum Payments
|
$ | 52,862 | $ | 47,550 | $ | 15,715 | $ | 116,127 | ||||||||
December
31,
|
December
31,
|
|||||||
(All
Amounts in Thousands)
|
2008
|
2007
|
||||||
Drydocking
Costs
|
$ | 10,855 | $ | 13,062 | ||||
Financing
Charges and Other
|
1,784 | 2,275 | ||||||
Acquired
Contract Costs
|
1,819 | 3,274 | ||||||
$ | 14,458 | $ | 18,611 |
Year
Ended December 31,
|
||||||||||||
(All
Amounts in Thousands)
|
2008
|
2007
|
2006
|
|||||||||
United
States
|
$ | 154,068 | $ | 122,641 | $ | 114,820 | ||||||
Asian
Countries
|
87,329 | 74,091 | 69,197 | |||||||||
Rail-Ferry
Service Operating Between U.S. Gulf and Mexico
|
39,410 | 21,235 | 18,427 | |||||||||
Other
Countries
|
1,094 | 146 | 1,054 | |||||||||
Total
Revenues
|
$ | 281,901 | $ | 218,113 | $ | 203,498 |
Time
Charter
|
Rail-Ferry
|
|||||||||||||||||||
(All
Amounts in Thousands)
|
Contracts
|
COA
|
Service
|
Other
|
Total
|
|||||||||||||||
2008
|
||||||||||||||||||||
Revenues
from External Customers
|
$ | 218,805 | $ | 19,195 | $ | 39,410 | $ | 4,491 | $ | 281,901 | ||||||||||
Intersegment
Revenues (Eliminated)
|
- | - | - | 19,626 | 19,626 | |||||||||||||||
Intersegment
Expenses (Eliminated)
|
- | - | - | (19,626 | ) | (19,626 | ) | |||||||||||||
Voyage
Expenses
|
168,479 | 17,553 | 32,136 | 2,072 | 220,240 | |||||||||||||||
Depreciation
and Amortization
|
21,499 | 977 | 6,016 | 45 | 28,537 | |||||||||||||||
Gross
Voyage Profit
|
35,735 | 1,642 | 1,909 | 2,407 | 41,693 | |||||||||||||||
Interest
Expense
|
4,803 | - | 1,502 | 581 | 6,886 | |||||||||||||||
Segment
Profit
|
30,932 | 1,642 | 407 | 1,826 | 34,807 | |||||||||||||||
Segment
Assets
|
227,821 | 3,933 | 67,470 | 27,155 | 326,380 | |||||||||||||||
Expenditures
for Segment Assets
|
4,438 | 169 | 1,694 | 1,894 | 8,195 | |||||||||||||||
2007
|
||||||||||||||||||||
Revenues
from External Customers
|
$ | 178,336 | $ | 16,652 | $ | 21,235 | $ | 1,890 | $ | 218,113 | ||||||||||
Intersegment
Revenues (Eliminated)
|
- | - | - | 14,245 | 14,245 | |||||||||||||||
Intersegment
Expenses (Eliminated)
|
- | - | - | (14,245 | ) | (14,245 | ) | |||||||||||||
Voyage
Expenses
|
137,828 | 10,940 | 18,406 | 841 | 168,015 | |||||||||||||||
Depreciation
and Amortization
|
23,231 | 2,046 | 5,223 | 601 | 31,101 | |||||||||||||||
Gross
Voyage Profit (Loss)
|
25,198 | 4,100 | (1,566 | ) | 1,044 | 28,776 | ||||||||||||||
Interest
Expense
|
7,122 | 625 | 2,172 | (157 | ) | 9,762 | ||||||||||||||
Gain
on Sale of Other Asset
|
- | - | - | 12 | 12 | |||||||||||||||
Segment
Profit (Loss)
|
18,076 | 3,475 | (3,738 | ) | 1,213 | 19,026 | ||||||||||||||
Segment
Assets
|
242,202 | 4,946 | 102,988 | 1,326 | 351,462 | |||||||||||||||
Expenditures
for Segment Assets
|
32,620 | 3,932 | 12,630 | 16,700 | 65,882 | |||||||||||||||
2006
|
||||||||||||||||||||
Revenues
from External Customers
|
$ | 166,615 | $ | 16,081 | $ | 18,427 | $ | 2,375 | $ | 203,498 | ||||||||||
Intersegment
Revenues (Eliminated)
|
- | - | - | 13,582 | 13,582 | |||||||||||||||
Intersegment
Expenses (Eliminated)
|
- | - | - | (13,582 | ) | (13,582 | ) | |||||||||||||
Voyage
Expenses
|
124,289 | 9,522 | 19,734 | 1,967 | 155,512 | |||||||||||||||
Depreciation
and Amortization
|
18,267 | 2,744 | 4,598 | 86 | 25,695 | |||||||||||||||
Impairment
Loss
|
- | - | (8,866 | ) | - | (8,866 | ) | |||||||||||||
Gross
Voyage Profit (Loss)
|
28,517 | 4,142 | (14,002 | ) | 397 | 19,054 | ||||||||||||||
Interest
Expense
|
7,562 | 1,399 | 2,154 | 32 | 11,147 | |||||||||||||||
Segment
Profit (Loss)
|
20,955 | 2,743 | (16,156 | ) | 365 | 7,907 | ||||||||||||||
Segment
Assets
|
184,659 | 32,468 | 83,082 | 14,312 | 314,521 | |||||||||||||||
Expenditures
for Segment Assets
|
6,990 | - | 16,429 | 6,812 | 30,231 |
(All
Amounts in Thousands)
|
Year
Ended December 31,
|
|||||||||||
Profit
or Loss:
|
2008
|
2007
|
2006
|
|||||||||
Total
Profit for Reportable Segments
|
$ | 34,807 | $ | 19,026 | $ | 7,907 | ||||||
Unallocated
Amounts:
|
||||||||||||
Administrative
and General Expenses
|
(21,414 | ) | (18,158 | ) | (17,609 | ) | ||||||
Gain
on Sale of Investment
|
(148 | ) | 352 | 23,058 | ||||||||
Investment
Income
|
525 | 2,592 | 1,397 | |||||||||
(Loss)
on Early Extinguishment of Debt
|
- | - | (248 | ) | ||||||||
(Loss)
on Redemption of Preferred Stock
|
(1,371 | ) | - | - | ||||||||
Income
from Continuing Operations Before (Benefit)
|
||||||||||||
Provision
for Income Taxes and Equity in Net
|
||||||||||||
Income
of Unconsolidated Entities
|
$ | 12,399 | $ | 3,812 | $ | 14,505 | ||||||
December
31,
|
December
31,
|
|||||||
Assets:
|
2008
|
2007
|
||||||
Total
Assets for Reportable Segments
|
$ | 326,380 | $ | 351,462 | ||||
Unallocated
Amounts:
|
||||||||
Current
Assets
|
90,305 | 61,843 | ||||||
Investment
in Unconsolidated Entities
|
5,803 | 16,326 | ||||||
Due
from Related Parties
|
6,195 | 5,897 | ||||||
Other
Assets
|
5,428 | 5,127 | ||||||
Total
Assets
|
$ | 434,111 | $ | 440,655 |
|
The
unaudited condensed financial position and results of operations of Dry
Bulk are summarized below:
|
December
31,
|
December
31,
|
|||||||
(Amounts
in Thousands)
|
2008
|
2007
|
||||||
Current
Assets
|
$ | 5,700 | $ | 6,783 | ||||
Noncurrent
Assets
|
95,049 | 119,129 | ||||||
Current
Liabilities
|
1,709 | 525 | ||||||
Noncurrent
Liabilities
|
95,712 | 102,146 |
Year
Ended December 31,
|
|||||||||||||
(Amounts
in Thousands)
|
2008
|
2007
|
2006
|
||||||||||
Operating
Revenues
|
$ | 25,682 | $ | 30,778 | $ | 25,174 | |||||||
Operating
Income
|
14,249 | 18,959 | 13,846 | ||||||||||
Net
Income
|
42,129 | 12,699 | 7,089 |
Year
Ended December 31,
|
||||||||||||
(All
Amounts in Thousands)
|
2008
|
2007
|
2006
|
|||||||||
Cash
Payments:
|
||||||||||||
Interest
Paid
|
$ | 7,589 | $ | 9,874 | $ | 10,949 | ||||||
Taxes
Paid
|
597 | 528 | 557 |
Carrying
|
Fair
|
Carrying
|
Fair
|
||
(All
Amounts in Thousands)
|
Amount
|
Value
|
Amount
|
Value
|
|
Interest
Rate Swap Agreements
|
($10,746)
|
($10,746)
|
($1,428)
|
($1,428)
|
|
Foreign
Currency Contracts
|
($1,290)
|
($1,290)
|
($2)
|
($2)
|
|
Long-Term
Debt
|
($140,126)
|
($140,126)
|
($143,204)
|
($143,204)
|
Effective
Date
|
Termination
Date
|
Current
Notional Amount
|
Swap
Rate
|
Type
|
9/18/07
|
9/10/10
|
¥4,659,090,910
|
1.15%
|
Fixed
|
9/28/07
|
9/30/10
|
$17,264,333
|
4.68%
|
Fixed
|
12/31/07
|
9/30/10
|
$17,264,333
|
3.96%
|
Fixed
|
11/30/05
|
11/30/12
|
$13,615,000
|
5.17%
|
Fixed
|
3/31/08
|
9/30/13
|
$17,264,333
|
3.46%
|
Fixed
|
9/30/10
|
9/30/13
|
$12,908,000
|
2.69%
|
Fixed
|
9/30/10
|
9/30/13
|
$12,908,000
|
2.45%
|
Fixed
|
9/26/05
|
9/28/15
|
$11,666,667
|
4.41%
|
Fixed
|
9/26/05
|
9/28/15
|
$11,666,667
|
4.41%
|
Fixed
|
3/15/09
|
9/15/20
|
¥
6,200,000,000
|
2.065%
|
Fixed
|
(All
Amounts in Thousands)
|
December
31, 2008
|
|||||||||||
Security
Type
|
Cost Basis
|
Fair
Value
|
Unrealized
Gain (Loss)
Net
of Taxes
|
|||||||||
Equity
Securities
|
$ | 3,570 | $ | 2,707 | $ | (597 | ) | |||||
$ | 3,570 | $ | 2,707 | $ | (597 | ) | ||||||
December
31, 2007
|
||||||||||||
Security
Type
|
Cost Basis
|
Fair
Value
|
Unrealized
Gain (Loss)
Net
of Taxes
|
|||||||||
Equity
Securities
|
$ | 3,708 | $ | 4,090 | $ | 247 | ||||||
Corporate
Debt Securities
|
1,477 | 1,488 | 4 | |||||||||
$ | 5,185 | $ | 5,578 | $ | 251 |
NOTE
P - ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
|
||||||||
Following
are the components of the consolidated balance sheet classification
Accounts Payable and Accrued Liabilities:
|
||||||||
December
31,
|
December
31,
|
|||||||
(All
Amounts in Thousands)
|
2008
|
2007
|
||||||
Accrued
Voyage Expenses
|
$ | 11,294 | $ | 15,454 | ||||
Trade
Accounts Payable
|
6,985 | 2,676 | ||||||
Lease
Incentive Obligation
|
2,955 | 2,876 | ||||||
Short
Term Derivative Liability
|
1,290 | - | ||||||
Self-Insurance
Liability
|
1,754 | 1,880 | ||||||
Accrued
Salaries and Benefits
|
1,904 | 59 | ||||||
Other
Accrued Expenses
|
332 | 601 | ||||||
$ | 26,514 | $ | 23,546 |
(All
Amounts in Thousands Except Share Data)
|
Quarter
Ended
|
||||||||||||||||
March
31
|
June
30
|
Sept.
30
|
Dec.
31
|
||||||||||||||
2008
|
Revenues
|
$ | 63,705 | $ | 61,149 | $ | 84,349 | $ | 72,698 | ||||||||
Expenses
|
57,189 | 53,961 | 67,849 | 61,209 | |||||||||||||
Gross
Voyage Profit
|
6,516 | 7,188 | 16,500 | 11,489 | |||||||||||||
Income
from Continuing Operations
|
217 | 18,025 | 11,191 | 4,790 | |||||||||||||
Net
Income (Loss) from Discontinued Operations
|
4,597 | (9 | ) | 119 | 120 | ||||||||||||
Net
Income Available to Common Stockholders
|
4,726 | 18,016 | 11,310 | 4,910 | |||||||||||||
Basic
and Diluted Earnings per Common Share:
|
|||||||||||||||||
Net
Income Available to Common Stockholders-Basic
|
|||||||||||||||||
Continuing
Operations
|
0.02 | 2.38 | 1.55 | 0.67 | |||||||||||||
Discontinued
Operations
|
0.63 | 0.00 | 0.02 | 0.02 | |||||||||||||
Net
Income Available to Common Stockholders-Diluted
|
|||||||||||||||||
Continuing
Operations
|
0.02 | 2.37 | 1.54 | 0.66 | |||||||||||||
Discontinued
Operations
|
0.58 | 0.00 | 0.02 | 0.02 | |||||||||||||
2007
|
Revenues
|
$ | 50,277 | $ | 57,102 | $ | 54,307 | $ | 56,427 | ||||||||
Expenses
|
44,163 | 49,068 | 46,885 | 49,221 | |||||||||||||
Gross
Voyage Profit
|
6,114 | 8,034 | 7,422 | 7,206 | |||||||||||||
Income
from Continuing Operations
|
1,889 | 2,983 | 3,433 | 3,487 | |||||||||||||
Net
(Loss) Gain from Discontinued Liner Service
|
2,851 | 3,970 | (1,116 | ) | (81 | ) | |||||||||||
Net
Income Available to Common Stockholders
|
4,140 | 6,353 | 1,717 | 2,806 | |||||||||||||
Basic
and Diluted Earnings (Loss) per Common Share:
|
|||||||||||||||||
Net
Income (Loss) Available to Common Stockholders
|
|||||||||||||||||
Continuing
Operations
|
0.21 | 0.38 | 0.43 | 0.44 | |||||||||||||
Discontinued
Operations
|
0.47 | 0.63 | (0.17 | ) | (0.01 | ) | |||||||||||
Net
Income (Loss) Available to Common Stockholders-Diluted
|
|||||||||||||||||
Continuing
Operations
|
0.23 | 0.36 | 0.40 | 0.41 | |||||||||||||
Discontinued
Operations
|
0.35 | 0.48 | (0.13 | ) | (0.01 | ) | |||||||||||
Year
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Numerator
|
||||||||||||
Net
Income (Loss) Available to Common Stockholders –
Basic
|
||||||||||||
Continuing
*
|
$ | 34,135 | $ | 9,392 | $ | 15,794 | ||||||
Discontinued
|
4,827 | 5,624 | (1,146 | ) | ||||||||
$ | 38,962 | $ | 15,016 | $ | 14,648 | |||||||
Net
Income (Loss) – Diluted
|
||||||||||||
Continuing
|
$ | 34,223 | $ | 11,792 | $ | 18,194 | ||||||
Discontinued
|
4,827 | 5,624 | (1,146 | ) | ||||||||
$ | 39,050 | $ | 17,416 | $ | 17,048 | |||||||
Denominator
|
||||||||||||
Weighted
Average Shares of Common Stock Outstanding:
|
||||||||||||
Basic
|
7,314,216 | 6,360,208 | 6,116,036 | |||||||||
Plus:
|
||||||||||||
Effect
of dilutive restrictive stock
|
22,341 | - | - | |||||||||
Effect
of dilutive stock options
|
- | 9,265 | 6,542 | |||||||||
Effect
of dilutive convertible shares from preferred stock
|
165,000 | 2,000,000 | 2,000,000 | |||||||||
Diluted
|
7,501,555 | 8,369,473 | 8,122,578 | |||||||||
Basic
and Diluted Earnings Per Common Share
|
||||||||||||
Net
Income (Loss) Available to Common
|
||||||||||||
Stockholders
– Basic
|
||||||||||||
Continuing
Operations
|
$ | 4.67 | $ | 1.48 | $ | 2.58 | ||||||
Discontinued
Operations
|
0.66 | 0.88 | (0.18 | ) | ||||||||
$ | 5.33 | $ | 2.36 | $ | 2.40 | |||||||
Net
Income (Loss) Available to Common
|
||||||||||||
Stockholders
– Diluted
|
||||||||||||
Continuing
Operations
|
$ | 4.56 | $ | 1.41 | $ | 2.24 | ||||||
Discontinued
Operations
|
0.64 | 0.67 | (0.14 | ) | ||||||||
$ | 5.20 | $ | 2.08 | $ | 2.10 | |||||||
* Income (Loss) from Continuing Operations less Preferred Stock Dividends |
|
NOTE
T - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
|
||||||
Accumulated
Other Comprehensive Income (Loss) is comprised of the following,
net of tax:
|
||||||
December
31,
|
||||||
2008
|
2007
|
|||||
Unrealized
gains (losses) on marketable securities
|
$
(597)
|
$
251
|
||||
Fair
value of derivatives
|
(10,997)
|
(1,189)
|
||||
Funding
status of benefit plans
|
(5,254)
|
(1,034)
|
||||
$ (16,848)
|
$
(1,972
|
Shares
|
Weighted
Average Fair Value Per Share
|
|
Non-vested
– January 1, 2008
|
-
|
-
|
Shares
Granted
|
175,000
|
$18.40
|
Shares
Vested
|
-
|
-
|
Shares
Forfeited
|
-
|
-
|
Non-vested
– December 31, 2008
|
175,000
|
$18.40
|
Grant
Date
|
2009
|
2010
|
2011
|
2012
|
Total
|
April
30, 2008
|
$1,135,000
|
$ 894,000
|
$ 401,000
|
$ 33,000
|
$3,220,000
|
w
|
Level 3 Inputs -
Unobservable inputs for determining the fair values of assets or
liabilities that reflect an entity's own assumptions about the assumptions
that market participants would use in pricing the assets or
liabilities.
|
(Amounts
in thousands)
|
Level
1 Inputs
|
Level
2 Inputs
|
Level
3 Inputs
|
Total
Fair Value
|
||||||||||||
Marketable
securities
|
$ | 2,707 | $ | - | $ | - | $ | 2,707 | ||||||||
Derivative
liabilities
|
- | (12,036 | ) | - | (12,036 | ) |