(Source: Business Wire)
International Shipholding Corporation (NYSE: ISH) today announced the
financial results for the quarter ended September 30, 2009.
Third Quarter 2009 Highlights
Generated net income of $11.3 million for the three months ended
September 30, 2009;
Declared a fifth consecutive quarterly dividend of $0.50 per share
payable on December 1, 2009 to shareholders of record as of November
17, 2009;
Appointed Mr. Kenneth H. Beer and Mr. Harris V. Morrissette to the
Board of Directors.
Net Income
The Company reported net income of $11.3 million for the three months
ended September 30, 2009, as compared to $11.3 million for the 2008
period. For the nine month period, the Company reported net income of
$31.4 million as compared to $34.1 million for the nine months ended
September 30, 2008. The nine months 2008 net income included a gain of
$15.8 million from the sale of a vessel and $4.7 million from
discontinued operations.
Mr. Niels M. Johnsen, chairman and chief executive officer, stated,
"During the third quarter, the Company once again benefited from its
strategy of maintaining a diversified portfolio of medium to long-term
contracts. Complementing our solid quarterly results, we are also
pleased to have maintained our balance sheet strength during a
challenging time for the shipping industry. With significant financial
flexibility, we are well positioned to opportunistically seek growth
opportunities aimed at creating long-term value for all shareholders."
Operating Income
Operating Income for the three months ended September 30, 2009 was $9.9
million as compared to $ 11.1 million for the comparable period in 2008.
During the third quarter the Company agreed to a five year contract
extension with an Indonesian customer to service its mining operations.
The Company's Time Charter segment posted slightly lower results for the
third quarter of 2009 primarily due to a decrease in operating days on
the Company's U.S. flag Coal Carrier, the sale of one of its
international flag container vessels and lower results from the
Company's operations in Indonesia. Partially offsetting these results
were the continued carriage of supplemental cargoes on its U.S. flag
Pure Car Truck Carrier fleet.
The Contract of Affreightment segment had improved results compared to
the prior year period primarily as a result of more cargo moved during
the quarter.
The Company's Rail Ferry segment third quarter 2009 results were lower
than the comparable quarter in 2008. This segment continues to be
impacted by the economic conditions for consumer commodities.
Administrative and General Expense
Administrative and general expenses were flat when compared to the third
quarter of 2008. Expenses increased in comparison to the second quarter
of 2009 due to several non-recurring expenditures that were recognized
during the third quarter.
Interest Income and Expense
Interest expense for the three months ended September 30, 2009, was
lower than the same period in 2008, reflecting reduced outstanding
principal balances. The slight drop in investment income reflects lower
short term rates.
Federal Income Tax Benefit
The Company's total income tax benefit for the third quarter of 2009 was
$591,000 versus a provision of $457,000 for the 2008 comparable period.
The drop in results was primarily attributable to the Company's U.S.
flag Coal Carrier and Rail Ferry segments that were both taxed at the
higher corporate statutory rate.
Unconsolidated Entities
Third quarter 2009 results from the Company's Unconsolidated Entities
were in line with the same period in 2008. Current results were achieved
despite operating one less Bulk Carrier during the most recent quarter,
reflecting the improved results of the Company's remaining Panamax Bulk
Carrier.
Independent Appointees to the Board of Directors
The Company announced the appointment of Mr. Kenneth H. Beer and Mr.
Harris V. Morrissette to the board of directors following the planned
resignations of Mr. Niels W. Johnsen and Mr. Edward K. Trowbridge.
Commenting on the appointment, Mr. Johnsen, stated, "We are pleased to
appoint board members with Mr. Beer and Mr. Morrissette's experience
level and knowledge. With the addition of these two independent
directors, we believe that International Shipholding is positioned to
continue to successfully execute its business strategy."
Mr. Johnsen added, "We would like to thank my father and Mr. Trowbridge
for their many years of service to International Shipholding. As a
founder and former chairman and CEO of the Company, my father was
instrumental in establishing International Shipholding as a leading
diversified shipping company. Mr. Trowbridge has been a valuable member
of the Board, providing significant guidance to the Company."
Mr. Beer currently serves as Senior Vice President and Chief Financial
Officer of Stone Energy Corporation. Previously, Mr. Beer was a partner
at the investment banking firm of Johnson Rice & Company.
Mr. Morrissette currently serves as President of China Doll Rice and
Beans, Inc. and Chairman of Azalea Aviation Inc. Previously, Mr.
Morrissette served as CEO of Marshall Biscuit Company, Inc.
Dividend Declaration
The Company's Board of Directors authorized the payment of a $0.50
dividend, payable on December 1, 2009, for each share of common stock
owned on the record date of November 17, 2009. The Company intends to
continue its reinstated dividend policy. All future dividend
declarations and amounts remain at the discretion of International
Shipholding Corporation's Board of Directors.
About International Shipholding
International Shipholding Corporation, through its subsidiaries,
operates a diversified fleet of U. S. and foreign flag vessels that
provide international and domestic maritime transportation services to
commercial and governmental customers primarily under medium to
long-term charters and contracts. www.intship.com
Caution concerning forward-looking statements
This press release contains forward-looking statements within the
meaning of the U.S. federal securities laws. These forward-looking
statements are based on assumptions and opinions concerning a variety of
known and unknown risks. Please refer to ISH's Annual Report on form
10-K for the year ended December 31, 2008 as well as its future filings
and reports filed with or furnished to the Securities and Exchange
Commission for a description of the business environment in which ISH
operates and the important factors, risks and uncertainties that may
affect its business and financial results. If any assumptions or
opinions prove materially incorrect, any forward-looking statements made
on that basis may also prove to be materially incorrect. ISH is not
under any obligation to (and expressly disclaims any such obligations
to) update or alter its forward-looking statements whether as a result
of new information, future events or otherwise.
INTERNATIONAL SHIPHOLDING CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(All Amounts in Thousands Except Share Data)
(Unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
2009 2008 2009 2008
Revenues $ 92,261 $ 84,349 $ 290,156 $ 209,203
Operating Expenses:
Voyage Expenses 71,682 63,147 226,625 164,157
Vessel and Barge Depreciation 5,087 4,702 15,481 14,842
Impairment Loss - - 2,899 -
Gross Voyage Profit 15,492 16,500 45,151 30,204
Administrative and General Expenses 5,482 5,437 16,422 15,343
Loss on Sale of Other Assets 129 - 129 -
Operating Income 9,881 11,063 28,600 14,861
Interest and Other:
Interest Expense 1,495 1,757 4,365 5,388
Loss on Sale of Investment - 57 - 148
Loss on Redemption of Preferred Stock - - - 1,371
Investment Loss (Income) (145 ) (175 ) 187 (612 )
1,350 1,639 4,552 6,295
Income from Continuing Operations Before (Benefit)
Provision for Income Taxes and Equity in Net Income of Unconsolidated Entities 8,531 9,424 24,048 8,566
(Benefit) Provision for Income Taxes:
Current 65 (400 ) 196 (400 )
Deferred (656 ) 857 (2,671 ) (486 )
State 10 13 54 38
(581 ) 470 (2,421 ) (848 )
Equity in Net Income of Unconsolidated Entities (Net of Applicable Taxes) 2,197 2,237 4,975 20,019
Income from Continuing Operations 11,309 11,191 31,444 29,433
Gain from Discontinued Operations
Gain/(Loss) before benefits for income taxes - 100 - 100
Gain (Loss) on Sale of Liner Assets - 19 - 4,607
Net Income from Discontinued Operations - 119 - 4,707
Net Income $ 11,309 $ 11,310 $ 31,444 $ 34,140
Preferred Stock Dividends - - - 88
Net Income Available to Common Stockholders $ 11,309 $ 11,310 $ 31,444 $ 34,052
Basic and Diluted Earnings Per Common Share:
Net Income Available to Common Stockholders
Continuing Operations $ 1.56 $ 1.55 $ 4.35 $ 3.99
Discontinued Operations 0.00 0.02 0.00 0.64
$ 1.56 $ 1.57 $ 4.35 $ 4.63
Net Income Available to Common Stockholders - Diluted
Continuing Operations $ 1.55 $ 1.54 $ 4.33 $ 3.87
Discontinued Operations 0.00 0.02 0.00 0.62
$ 1.55 $ 1.56 $ 4.33 $ 4.49
Weighted Average Shares of Common Stock Outstanding:
Basic 7,228,570 7,209,319 7,223,460 7,358,082
Diluted 7,298,170 7,244,106 7,268,324 7,595,380
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