 |  |  |  |  |  |  |  |  |
|
Genco Shipping & Trading Limited Announces First Quarter 2008 Financial ResultsDeclares Increased Dividend of $1.00 per Share for Q1 2008Increases 2008 Quarterly Dividend Target Rate to $1.00 per ShareRepays $73 Million of Debt
NEW YORK, April 30 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited NYSE: GNK today reported its financial results for the three months ended March 31, 2008. The following financial review discusses the results for the three months ended March 31, 2008 and March 31, 2007.
First Quarter 2008 and Year-to-Date Highlights
-- Declared a dividend at a new quarterly target rate of $1.00 per share,
an increase of $0.15 over the previous target of $0.85 per share,
based on Q1 2008 results, payable on or about May 30, 2008 to all
shareholders of record as of May 16, 2008;
-- Excluding the $26.2 million gain on the sale of the Genco Trader,
recorded net income of $47.8 million, or $1.66 basic and $1.65 diluted
earnings per share;
-- Recorded net income of $74.0 million, or $2.57 basic and $2.56 diluted
earnings per share;
-- Took delivery of the Genco Champion, completing the acquisition of the
six drybulk vessels from affiliates of Evalend Shipping Co. S.A. for
an aggregate purchase price of $336 million;
-- Took delivery of the Genco Constantine, the fifth of nine vessels from
the Metrostar transaction;
-- Completed the sale of the Genco Trader, realized a gain on the sale of
assets of $26.2 million and repaid $43 million of debt from the sales
proceeds;
-- Repaid $30 million of debt with cash flow from operations;
-- Paid an $0.85 per share dividend on March 7, 2008 based on Q4 2007
results;
-- Increased our ownership of the outstanding stock of Jinhui Shipping
and Transportation Limited to 19.4% through April 30, 2008; and
-- Entered into an agreement to time charter the Genco Carrier at a gross
rate of $37,000 per day for 34 to 37.5 months, a 54% increase over its
current rate of $24,000.
Financial Review: 2008 First Quarter
Excluding the $26.2 million gain on the sale of the Genco Trader, the Company recorded net income for the first quarter of 2008 of $47.8 million, or $1.66 basic and $1.65 diluted earnings per share. Net income was $74.0 million or $2.57 basic and $2.56 diluted earnings per share for the three months ended March 31, 2008. Comparatively, for the three months ended March 31, 2007 net income was $19.8 million or $0.78 basic and diluted earnings per share. EBITDA was $95.8 million for the three months ended March 31, 2008 versus $30.5 million for the three months ended March 31, 2007. Robert Gerald Buchanan, President, commented, "During the first quarter, we continued to take advantage of the strong drybulk market while further growing our fleet of modern vessels. Specifically, we signed time charters at significantly higher rates with staggered durations, enabling the Company to increase its sizeable contracted revenue stream and maintain the ability to benefit from future rate increases. We also completed the acquisition of six drybulk vessels from affiliates of Evalend Shipping Co. S.A. and have taken delivery of our fifth Capesize vessel acquired from companies within the Metrostar Management Corporation group. With four additional Capesize vessels expected to be delivered in 2008 and 2009, Genco is in a strong position to further improve the age of its fleet and continue to benefit from the positive demand for the global transportation of essential commodities." Genco Shipping & Trading Limited revenues increased 146% to $91.7 million for the three months ended March 31, 2008 versus $37.2 million for the three months ended March 31, 2007, due to the operation of a larger fleet as well as the renewal of time charters at higher charter rates than those contracted previously. The average daily time charter equivalent, or TCE, rates obtained by the Company's fleet increased 73.5% to $35,891 per day for the three months ended March 31, 2008 compared to $20,683 for the three months ended March 31, 2007. The increase in TCE rates was due to higher charter rates achieved in the first quarter of 2008 versus the first quarter of 2007 for five of the Panamax vessels, five of the Handymax vessels, and five of the Handysize vessels in our current fleet. Furthermore, higher TCE rates were achieved in the first quarter of 2008 versus the same period last year due to the operation of five Capesize vessels acquired as part of the Metrostar acquisition. Total operating expenses decreased to $6.4 million for the three months ended March 31, 2008 from $15.0 million for the three-month period ended March 31, 2007 due to the gain on the sale of the Genco Trader, off-set by higher vessel operating expenses, general and administrative expenses and depreciation and amortization related to the operation of a larger fleet. Vessel operating expenses were $10.9 million for the first quarter of 2008 compared to $6.4 million for the same period last year. The increase in vessel operating expenses was due to the operation of a larger fleet, as well as higher crewing and lube expenses. We expect our vessel operating expenses, which generally represent variable costs, to further increase as a result of the expansion of our fleet. Depreciation and amortization expenses increased to $15.9 million for the first quarter of 2008 from $7.2 million for the first quarter of 2007 related to the growth of our fleet. General and administrative expenses increased to $4.4 million from $3.2 million during the comparative periods due to higher legal expenses, costs associated with higher employee non-cash compensation and other employee related costs. Management fees were $0.7 million for the three months ended March 31, 2008 and $0.4 million for the three months ended March 31, 2007, respectively, and relate to fees paid to our independent technical managers. Daily vessel operating expenses grew to $4,278 per vessel per day during the first quarter of 2008 from $3,627 for the same quarter last year as a result of higher crew and lube expenses as well as the operation of five Capesize vessels. We believe daily vessel operating expenses are best measured for comparative purposes over a 12-month period in order to take into account all of the expenses that each vessel in our fleet will incur over a full year of operation. Based on estimates provided by our technical managers and management's expectations, we expect our 2008 DVOE budget to be $4,700 per vessel per day. As previously announced the increased budget reflects the anticipated increased cost for crewing and lubes as well as the operation of our Capesize vessels. Liquidity and Capital Resources
Cash Flow
Net cash provided by operating activities for the three months ended March 31, 2008 and 2007, was $55.7 million and $23.3 million, respectively. The increase was primarily due to the operation of a larger fleet, which contributed to increases in net income, depreciation, and deferred revenues. Adjustments to operating cash flows include Jinhui investment activities of $11.5 million of realized losses on forward currency contracts offset by $9.7 million of unrealized gains on hedged short-term investments and $1.7 million of unrealized gains on forward currency contracts. The increases were offset by a $26.2 million gain related to the sale of the Genco Trader, and $6.8 million of amortization of value of the time charters acquired as part of the Metrostar and Evalend acquisitions. Net cash provided by operating activities for the three months ended March 31, 2007 was primarily a result of recorded net income of $19.8 million, less the gain from the sale of the Genco Glory of $3.6 million, plus depreciation and amortization charges of $7.2 million. Net cash (used in) provided by investing activities was ($132.4) million for the three months ended March 31, 2008 as compared to $12.8 provided by investing activities for the three months ended March 31, 2007. For the quarter ended March 31, 2008, cash used in investing activities related primarily to the purchase of vessels in the amount of $153.3 million, the purchase of $10.3 million of Jinhui stock, and payments on forward currency contracts of $11.4 million. The increases were offset by total proceeds received from the sale of the Genco Trader of $43.1 million. For the three months ended March 31, 2007 the cash provided by investing activities related primarily to the proceeds from the sale of the Genco Glory of $13.0 million. Net cash provided by (used in) financing activities for the three months ended March 31, 2008 was $53.4 million as compared to ($22.5) million of cash used in investing activities for the three months ended March 31, 2007. For the quarter ended March 31, 2008, net cash provided by financing activities consisted of the drawdown of $151.5 million related to the purchase of vessels and was offset by the repayment of $73.0 million under the 2007 credit facility and the payment of cash dividends of $24.7 million. For the same period last year, net cash used in financing activities consisted of the payment of cash dividends of $16.8 million and of the repayment of $5.7 million of our credit facility. Capital Expenditures We make capital expenditures from time to time in connection with vessel acquisitions. Our current fleet consists of five Capesize drybulk carriers, six Panamax drybulk carriers, three Supramax drybulk carriers, six Handymax drybulk carriers and eight Handysize drybulk carriers. After the delivery of the four remaining vessels from companies within the Metrostar Management Corporation group, Genco Shipping & Trading Limited will own a fleet of 32 drybulk vessels, consisting of nine Capesize, six Panamax, three Supramax, six Handymax and eight Handysize vessels, with a carrying capacity of approximately 2,700,000 dwt. In addition to acquisitions that we may undertake in future periods, we will incur additional capital expenditures due to special surveys and drydockings for our fleet. We estimate that one vessel will be drydocked during the second quarter of 2008. An additional five vessels are estimated to be drydocked in 2008 and five in 2009. We estimate our drydocking costs for our fleet through 2009 to be:
Q2 2008 Q3 - Q4 2008 2009
Estimated Costs (1) $0.7 million $3.5 million $3.7 million
Estimated Offhire Days (2) 20 100 100
(1) Estimates are based on our budgeted cost of drydocking our vessels
in China. Actual costs will vary based on various factors, including
where the drydockings are actually performed. We expect to fund
these costs with cash from operations.
(2) Assumes 20 days per drydocking per vessel. Actual length will vary
based on the condition of the vessel, yard schedules and other
factors.
The Genco Challenger completed its drydocking during the first quarter of 2008 at a cost of approximately $0.5 million. The vessel was on planned offhire for 12 days in connection with this scheduled drydocking. Update on Share Repurchase Program The Company recently announced that its Board of Directors has approved a share repurchase program for up to a total of $50 million of the Company's common stock. During the first quarter of 2008 the Company did not buy back any shares. As of April 30, 2008 the Company has 29,078,309 shares of its common stock outstanding. Summary Consolidated Financial and Other Data The following table summarizes Genco Shipping & Trading Limited's selected consolidated financial and other data for the periods indicated below.
Three Months Ended
March 31, 2008 March 31, 2007
(Dollars in thousands, except share
and per share data)
(unaudited)
INCOME STATEMENT DATA:
Revenues $91,669 $37,220
Operating expenses:
Voyage expenses 744 1,413
Vessel operating expenses 10,919 6,389
General and administrative expenses 4,411 3,195
Management fees 672 351
Depreciation and amortization 15,864 7,186
Gain on sale of vessel (26,227) (3,575)
Total operating expenses 6,383 14,959
Operating income 85,286 22,261
Other (expense) income:
(Loss) Gain from derivative
instruments (64) -
Interest income 552 1,066
Interest expense (11,787) (3,490)
Other (expense) income: (11,299) (2,424)
Net income $73,987 $19,837
Earnings per share - basic $2.57 $0.78
Earnings per share - diluted $2.56 $0.78
Weighted average shares
outstanding - basic 28,733,928 25,308,953
Weighted average shares
outstanding - diluted 28,914,350 25,421,480
March 31, 2008 December 31, 2007
BALANCE SHEET DATA: (unaudited)
Cash $48,295 $71,496
Current assets, including cash 221,803 267,594
Total assets 1,746,773 1,653,272
Current liabilities, including current
portion of long-term debt 24,788 70,364
Total long-term debt, including
current portion 1,014,500 936,000
Shareholders' equity 622,346 622,185
Three Months Ended
March 31, 2008 March 31, 2007
(unaudited)
Net cash provided by operating
activities $55,711 $23,329
Net cash (used in) provided by
investing activities (132,351) 12,817
Net cash provided by (used in)
financing activities 53,439 (22,542)
Three Months Ended
March 31, 2008 March 31, 2007
FLEET DATA: (unaudited)
Total number of vessels at end of
period 28 19
Average number of vessels (1) 28.0 19.6
Total ownership days for fleet (2) 2,552 1,762
Total available days for fleet (3) 2,533 1,731
Total operating days for fleet (4) 2,528 1,703
Fleet utilization (5) 99.8% 98.3%
AVERAGE DAILY RESULTS:
Time charter equivalent (6) $35,891 $20,683
Daily vessel operating expenses per
vessel (7) 4,278 3,627
Three Months Ended
March 31, 2008 March 31, 2007
(Dollars in thousands)
EBITDA Reconciliation: (unaudited)
Net Income $73,987 $19,837
+ Net interest expense 11,235 2,424
+ Depreciation and amortization 15,864 7,186
+ Amortization of nonvested stock
compensation 1,588 586
+ Amortization of value of time
charters acquired (6,849) 456
EBITDA(8) 95,825 30,489
(1) Average number of vessels is the number of vessels that constituted
our fleet for the relevant period, as measured by the sum of the
number of days each vessel was part of our fleet during the period
divided by the number of calendar days in that period.
(2) We define ownership days as the aggregate number of days in a period
during which each vessel in our fleet has been owned by us. Ownership
days are an indicator of the size of our fleet over a period and
affect both the amount of revenues and the amount of expenses that we
record during a period.
(3) We define available days as the number of our ownership days less the
aggregate number of days that our vessels are off-hire due to
scheduled repairs or repairs under guarantee, vessel upgrades or
special surveys and the aggregate amount of time that we spend
positioning our vessels. Companies in the shipping industry generally
use available days to measure the number of days in a period during
which vessels should be capable of generating revenues.
(4) We define operating days as the number of our available days in a
period less the aggregate number of days that our vessels are
off-hire due to unforeseen circumstances. The shipping industry uses
operating days to measure the aggregate number of days in a period
during which vessels actually generate revenues.
(5) We calculate fleet utilization by dividing the number of our
operating days during a period by the number of our available days
during the period. The shipping industry uses fleet utilization to
measure a company's efficiency in finding suitable employment for its
vessels and minimizing the number of days that its vessels are
off-hire for reasons other than scheduled repairs or repairs under
guarantee, vessel upgrades, special surveys or vessel positioning.
(6) We define TCE rates as our net voyage revenue (voyage revenues less
voyage expenses) divided by the number of our available days during
the period, which is consistent with industry standards. TCE rate is
a common shipping industry performance measure used primarily to
compare daily earnings generated by vessels on time charters with
daily earnings generated by vessels on voyage charters, because
charterhire rates for vessels on voyage charters are generally not
expressed in per-day amounts while charterhire rates for vessels on
time charters generally are expressed in such amounts. Since some
vessels were acquired with an existing time charter at a below-market
rate, we allocated the purchase price between the vessel and an
intangible liability for the value assigned to the below-market
charterhire. This intangible liability is amortized as an increase
to voyage revenues over the minimum remaining term of the charter.
(7) We define daily vessel operating expenses to include crew wages and
related costs, the cost of insurance expenses relating to repairs and
maintenance (excluding drydocking), the costs of spares and
consumable stores, tonnage taxes and other miscellaneous expenses.
Daily vessel operating expenses are calculated by dividing vessel
operating expenses by ownership days for the relevant period.
(8) EBITDA represents net income plus net interest expense, income tax
expense, depreciation and amortization, amortization of nonvested
stock compensation, and amortization of the value of time charter
acquired. EBITDA is included because it is used by management and
certain investors as a measure of operating performance. EBITDA is
used by analysts in the shipping industry as a common performance
measure to compare results across peers. Our management uses EBITDA
as a performance measure in consolidating internal financial
statements and it is presented for review at our board meetings.
EBITDA is also used by our lenders in certain loan covenants. For
these reasons, we believe that EBITDA is a useful measure to present
to our investors. EBITDA is not an item recognized by U.S. GAAP and
should not be considered as an alternative to net income, operating
income or any other indicator of a company's operating performance
required by U.S. GAAP. EBITDA is not a source of liquidity or cash
flows as shown in our consolidated statement of cash flows. The
definition of EBITDA used here may not be comparable to that used by
other companies.
Genco Shipping & Trading Limited's Fleet
Our current fleet consists of five Capesize, six Panamax, three Supramax, six Handymax and eight Handysize drybulk carriers with an aggregate carrying capacity of approximately 2,020,000 dwt. Our current fleet contains six groups of sister ships, which are vessels of virtually identical sizes and specifications. We believe that maintaining a fleet that includes sister ships reduces costs by creating economies of scale in the maintenance, supply and crewing of our vessels. As of March 31, 2008, the average age of our current fleet was 6.5 years, as compared to the average age for the world fleet of approximately 16 years for the drybulk shipping segments in which we compete. All of the vessels in our current fleet are currently on long-term time charters with an average remaining life of approximately 19.5 months as of March 31, 2008.
The following table reflects the current employment of Genco's current
fleet as well as the employment or other status of vessels expected to join
Genco's fleet:
Rev- Expect-
Charter Cash enue ed
Year Expir- Daily Daily Deliv-
Vessel Built Charterer ation(1) Rate(2) Rate(3) ery(4)
Capesize Vessels
Genco Augustus 2007 Cargill December 45,263 62,750 -
International 2009
S.A.
Genco Tiberius 2007 Cargill January 45,263 62,750 -
International 2010
S.A.
Genco London 2007 SK Shipping August 2010 57,500 64,250
Co., Ltd
Genco Titus 2007 Cargill September 45,000(5) 46,250 -
International 2011
S.A.
Genco 2008 Cargill August 2012 52,750(5) -
Constantine International
S.A.
Genco Hadrian 2008(6) To be TBD TBD Q4 2008
determined
("TBD")
Genco Commodus 2009(6) TBD TBD TBD Q2 2009
Genco Maximus 2009(6) TBD TBD TBD Q2 2009
Genco Claudius 2009(6) TBD TBD TBD Q3 2009
Panamax Vessels
Genco Beauty 1999 Cargill May 2009 31,500 -
International
S.A.
Genco Knight 1999 SK Shipping May 2009 37,700 -
Ltd.
Genco Leader 1999 A/S Klaveness December 25,650(7) -
2008
Genco Vigour 1999 STX Panocean March 2009 29,000(8) -
(UK) Co. Ltd.
Genco Acheron 1999 Armada June 2008 74,500(9) -
Shipping S.A.
Genco Surprise 1998 Hanjin December 42,100 -
Shipping 2010
Co., Ltd.
Supramax Vessels
Genco Predator 2005 Oldendorff May 2008 55,000 -
GmbH
& Co. KG.
Genco Warrior 2005 Hyundai November 38,750 -
Merchant 2010
Marine
Co. Ltd.
Genco Hunter 2007 Pacific Basin June 2008 60,000(10) -
Chartering
Ltd.
Handymax Vessels
Genco Success 1997 Korea Line February 33,000(11) -
Corporation 2011
Genco Carrier 1998 Pacific Basin May 2008 24,000 -
Chartering
Ltd.
Louis Dreyfus March 2011 37,000(12)
Corporation
Genco 1997 Pacific Basin May 2008 26,000 -
Prosperity Chartering
Ltd.
Genco Wisdom 1997 Hyundai February 34,500(13) -
Merchant 2011
Marine
Co. Ltd.
Genco Marine 1996 NYK Bulkship March 2009 47,000 -
Europe S.A.
Genco Muse 2001 Norden A/S July 2008 47,650 -
Handysize Vessels
Genco Explorer 1999 Lauritzen August 2009 19,500 -
Bulkers A/S
Genco Pioneer 1999 Lauritzen August 2009 19,500 -
Bulkers A/S
Genco Progress 1999 Lauritzen August 2009 19,500 -
Bulkers A/S
Genco Reliance 1999 Lauritzen August 2009 19,500 -
Bulkers A/S
Genco Sugar 1998 Lauritzen August 2009 19,500 -
Bulkers A/S
Genco Charger 2005 Pacific Basin November
Chartering 2010 24,000 -
Ltd.
Genco 2003 Pacific Basin November
Challenger Chartering 2010 24,000 -
Ltd.
Genco 2006 Pacific Basin December
Champion Chartering 2010 24,000 -
Ltd.
(1) The charter expiration dates presented represent the earliest dates
that our charters may be terminated in the ordinary course. Except
for the Genco Titus, under the terms of each contract, the charterer
is entitled to extend time charters from two to four months in order
to complete the vessel's final voyage plus any time the vessel has
been off-hire. The charterer of the Genco Titus has the option to
extend the charter for a period of one year.
(2) Time charter rates presented are the gross daily charterhire rates
before third party commissions ranging from 1.25% to 6.25%, except
as indicated for the Genco Leader in note 7 below. In a time
charter, the charterer is responsible for voyage expenses such as
bunkers, port expenses, agents' fees and canal dues.
(3) For the vessels acquired with a below-market time charter rate, the
approximate amount of revenue on a daily basis to be recognized as
revenues is displayed in the column named "Revenue Daily Rate" and
is net of any third-party commissions. Since these vessels were
acquired with existing time charters with below-market rates, we
allocated the purchase price between the respective vessel and an
intangible liability for the value assigned to the below-market
charterhire. This intangible liability is amortized as an increase
to voyage revenues over the minimum remaining term of the charter.
For cash flow purposes, we will continue to receive the rate
presented in the "Cash Daily Rate" column until the charter expires.
(4) Dates for vessels being delivered in the future are estimates based
on guidance received from the sellers and/or the respective
shipyards.
(5) The charter includes a 50 percent index-based profit sharing
component.
(6) Year built for vessels being delivered in the future are estimates
based on guidance received from the sellers and/or the respective
shipyards.
(7) For the Genco Leader, the time charter rate presented is the net
daily charterhire rate. There are no payments of commissions
associated with these time charters.
(8) We have entered into a time charter for 23 to 25 months at a rate of
$33,000 per day for the first 11 months, $25,000 per day for the
following 11 months and $29,000 per day thereafter, less a 5%
third-party commission. For purposes of revenue recognition, the
time charter contract is reflected on a straight-line basis at
approximately $29,000 per day for 23 to 25 months in accordance with
generally accepted accounting principles in the United States, or
U.S. GAAP. The time charter, commenced following the expiration of
the vessel's previous time charter on May 5, 2007.
(9) We have entered into a short-term time charter for 1 trip at a rate
of $74,500 per day less a 5% third-party commission. The new charter
has commenced following the expiration of the previous charter on
April 18, 2008 and is expected to be completed in the middle of June
2008. Upon the completion of its time charter with Armada Shipping
S.A., the vessel is expected to complete its drydocking before
commencing subsequent time charters.
(10) We have reached an agreement to extend the time charter for an
additional 3 to 5.5 months at a rate of $60,000 per day less a 5%
third party commission. The new charter commenced following the
expiration of the previous charter on March 6, 2008.
(11) We recently extended the time charter for an additional 35 to 37.5
months at a rate of $40,000 per day for the first 12 months, $33,000
per day for the following 12 months and $26,000 per day for the next
12 months and $33,000 thereafter less a 5% third-party commission.
In all cases the rate for the duration of the time charter will
average $33,000. For purposes of revenue recognition, the time
charter contract is reflected on a straight-line basis at
approximately $33,000 per day for 35 to 37.5 months in accordance
with generally accepted accounting principles in the United States,
or U.S. GAAP. The new charter commenced following the expiration of
the previous charter on March 1, 2008.
(12) We have reached an agreement to commence a time charter for 34 to
37.5 months at a rate of $37,000 per day less a 5% third party
commission. The new charter is expected to commence following the
expiration of the previous charter on or about May 10, 2008.
(13) We recently extended the time charter for an additional 35 to 37.5
months at a rate of $34,500 per day less a 5% third party
commission. The new charter commenced following the expiration of
the previous charter on March 1, 2008.
Q1 2008 Dividend Announcement
The Company's Board of Directors declared a first quarter 2008 dividend of $1.00 per share payable on or about May 30, 2008 to all shareholders of record as of May 16, 2008. As previously announced, the Company plans to declare quarterly dividends to shareholders by each February, May, August and November, in amounts substantially equal to its available cash from operations during the previous quarter, less cash expenses for that quarter (principally vessel operating expenses and debt service) and any reserves the Board of Directors determines the Company should maintain. These reserves may cover, among other things: drydocking, repairs, claims, liabilities and other obligations, interest expense and debt amortization, acquisitions of additional assets and working capital. The Q1 2008 dividend of $1.00 equates to an annualized yield of 6.1% based on the closing price of Genco Shipping & Trading's common stock as of April 29, 2008 at $65.67. John C. Wobensmith, Chief Financial Officer, commented, "During the first quarter, we posted strong results, highlighting our fleet's significant earnings power. Complementing this success, we once again increased our quarterly dividend target rate, representing the third time since going public. We are pleased to have declared a dividend of $1.00 per share for the quarter, an increase over our first quarter 2007 and 2006 dividends of approximately 52% and 67%, respectively. During the quarter, we also drew upon our strong cash flow from our increased fleet and the proceeds from the sale of the oldest vessel in our fleet to pay down $73 million in debt, readying the Company for future growth. As we have done in the past, we will seek to consolidate the industry with a focus on earnings and cash flow accretion as well as return on capital while seeking to distribute sizeable dividends to shareholders." About Genco Shipping & Trading Limited Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. Genco Shipping & Trading Limited currently owns a fleet of 28 drybulk vessels consisting of five Capesize, six Panamax, three Supramax, six Handymax and eight Handysize vessels, with a carrying capacity of approximately 2,020,000 dwt. After the delivery of the four remaining Capesize vessels from companies within the Metrostar Management Corporation group, Genco Shipping & Trading Limited will own a fleet of 32 drybulk vessels, consisting of nine Capesize, six Panamax, three Supramax, six Handymax and eight Handysize vessels, with a carrying capacity of approximately 2,700,000 dwt. Conference Call Announcement Genco Shipping & Trading Limited announced that it will hold a conference call on Thursday, May 1, 2008 at 8:30 a.m. Eastern Time, to discuss its 2008 first quarter financial results. The conference call and a presentation will be simultaneously webcast and will be available on the Company's website, www.GencoShipping.com. To access the conference call, dial (877) 874-1589 or (719) 325-4837 and enter passcode 4047163. A replay of the conference call can also be accessed through May 15, 2008 by dialing (888) 203-1112 or (719) 457-0820 and entering the passcode 4047163. The Company intends to place additional materials related to the earnings announcement, including a slide presentation, on its website prior to the conference call. "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of
1995
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements are based on management's current expectations and observations. Included among the factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this report are the following: (i) changes in demand or rates in the drybulk shipping industry; (ii) changes in the supply of or demand for drybulk products, generally or in particular regions; (iii) changes in the supply of drybulk carriers including newbuilding of vessels or lower than anticipated scrapping of older vessels; (iv) changes in rules and regulations applicable to the cargo industry, including, without limitation, legislation adopted by international organizations or by individual countries and actions taken by regulatory authorities; (v) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, repairs, maintenance and general and administrative expenses; (vi) the adequacy of our insurance arrangements; (vii) changes in general domestic and international political conditions; (viii) changes in the condition of the Company's vessels or applicable maintenance or regulatory standards (which may affect, among other things, our anticipated drydocking or maintenance and repair costs) and unanticipated drydock expenditures; (ix) the number of offhire days needed to complete repairs on vessels and the timing and amount of any reimbursement by our insurance carriers for insurance claims including offhire days; (x) the Company's acquisition or disposition of vessels; (xi) the fulfillment of the closing conditions under the Company's agreement to acquire the remaining four drybulk vessels from companies within the Metrostar Management Corporation group; and other factors listed from time to time in our public filings with the Securities and Exchange Commission, including, without limitation, the Company's Annual Report on Form 10-K for the year ended December 31, 2007 and its reports on Form 8-K. The timing and amount of purchases under the Company's share repurchase program will be determined by management based upon market conditions and other factors. Purchases may be made pursuant to a program adopted under Rule 10b5-1 under the Securities and Exchange Act. The program does not require the Company to purchase any specific number or amount of shares and may be suspended or reinstated at any time in the Company's discretion and without notice. Repurchases will be subject to restrictions under the Company's existing credit facility. Our ability to pay dividends in any period will depend upon factors, including the limitations under our loan agreements, applicable provisions of Marshall Islands law and the final determination by the Board of Directors each quarter after its review of our financial performance. The timing and amount of dividends, if any, could also be affected by factors affecting cash flows, results of operations, required capital expenditures, or reserves. As a result, the amount of dividends actually paid may vary. Website: http://www.gencoshipping.com/ |
Issuers of news releases and not PR Newswire are solely responsible for the accuracy of the content.
Terms and conditions, including restrictions on
redistribution, apply.
Copyright © 1996-2008 PR Newswire Association LLC.
All Rights Reserved.
A United Business Media company.
