SOURCE: TBS International Limited

March 12, 2008 16:56 ET

TBS International Limited Reports Fourth Quarter and Year Ended December 31, 2007 Financial Results

HAMILTON, BERMUDA--(Marketwire - March 12, 2008) - TBS International Limited (NASDAQ: TBSI) announced today its financial and operating results for the fourth quarter and year ended December 31, 2007.

        Fourth Quarter and Year Ended December 31, 2007 Highlights:


Metric                           Q4 2007    Q4 2006    FY 2007    FY 2006
                                ---------- ---------- ---------- ----------
Revenue (million)               $    115.2 $     65.4 $    355.6 $    253.6
Net Income (million) (1)        $     35.2 $     14.4 $     98.2 $     39.1
Income (excl. non recurring
 items) (million) (1) (2)       $     35.2 $     14.7 $     93.0 $     43.0
EPS (diluted) (1)               $     1.26 $     0.51 $     3.50 $     1.39
EPS (excl. non recurring
 items) (1) (2)                 $     1.26 $     0.52 $     3.31 $     1.53
No. of Shares (diluted)         28,088,072 28,088,310 28,066,736 28,088,310
EBITDA (million) (1,3)          $     47.8 $     25.2 $    144.0 $     83.3
Drydock Days                           221        111      1,044        304


        Freight Voyages


Metric                           Q4 2007    Q4 2006    FY 2007    FY 2006
                                ---------- ---------- ---------- ----------
Average Daily Voyage TCE        $   24,149 $   13,806 $   20,679 $   12,650
Freight Voyage Days                  2,145      1,937      8,209      7,818
Tons of Cargo Shipped
 (thousand)                          1,838      1,171      6,621      4,368
Average Freight Rate for All
 Cargoes                        $    43.05 $    41.00 $    39.90 $    43.27
Average Freight Rate excluding
 Aggregates                     $    84.50 $    62.91 $    69.52 $    55.25
Bunker Cost/Voyage Day          $    5,503 $    4,432 $    4,803 $    4,738

        Time Charter Voyages
Average Time Charter TCE        $   30,426 $   15,894 $   22,374 $   13,604
Time Charter Days                    1,019      1,021      3,659      4,301



(1) For the year ended December 31, 2007 Net Income and EPS included a
    gain of $6.0 million from the sale and insurance recovery of the
    M.V. Huron Maiden and a loss of $800,000 from the sale of the M.V.
    Maya Princess.  For the year ended December 31, 2006 Net Income and
    EPS included a charge of $2.7 million for re-engineering costs, $1.3
    million charge for write-off of deferred finance costs and $2.1
    million in early prepayment fees offset by a gain of $2.2 million from
    the sale of the M.V. Dakota Belle. Fourth Quarter 2006 Net Income and
    EPS included a charge of $0.5 million for the re-engineering of
    certain of TBS' business processes offset by $0.2 million reimbursement
    of early prepayment fees.
(2) Income and EPS before non-recurring items is a non-GAAP financial
    measure. For a reconciliation of Net Income and EPS to Income and EPS
    before non-recurring items for the three months and year ended
    December 31, 2007 and 2006 please refer to "Non-GAAP Reconciliations"
    later in this press release.
(3) EBITDA is a non-GAAP financial measure. Please refer to "Non-GAAP
    Reconciliations-EBITDA" following the financial statements included in
    this press release for a reconciliation of EBITDA to Net Income.

Joseph E. Royce, Chairman, Chief Executive Officer and President, stated:

"2007 was a record year for TBS in revenues and tons of cargo shipped, as well as EBITDA, net income and earnings per share. These results validate our business growth model as a pure dry cargo shipping and logistics company.

"We are particularly proud of the 270 world-wide employees of TBS and our affiliated agencies who executed our business plan so capably and efficiently. These employees are our Company's biggest asset and set us apart from the traditional dry-cargo shipping companies by enabling us to deliver the TBS Five Star Service to our customers -- Ocean Transportation, Logistics, Port Services, Operations and Strategic Planning.

"Last year brought a number of positive results to TBS, many of which we believe will carry forward into 2008:

--  We increased cargo tons carried by our vessels and gained market share
    in our traditional trade lanes;
--  We expanded our TBS Pacific Service with the introduction of a steel
    parcel service from China, Korea and Japan to the West Coast of South
    America;
--  We established a steel, general cargo and project parcel service from
    China, Korea and Japan to Brazil and Argentina;
--  We introduced a new service from Argentina and Brazil into the
    Mediterranean;
--  We developed a backhaul steam and industrial coal transport business
    from Colombia and Venezuela to Brazil and Argentina;
--  We secured a new two year contract for the transport of approximately
    one million tons of aggregates per year in the Middle East;
--  We secured a one year contract for the transport of approximately
    250,000 tons of grain from the US to the Caribbean;
--  We also opened our TBS Logistics headquarters in Houston, Texas, to
    work with our international logistics partners and our affiliate agencies
    to expand our international project logistics capabilities;
    

and most importantly, TBS is benefitting from the current positive freight environment as we renewed Contacts of Affreightment for 2008 at increased freight rates compared to our 2007 experience.

"Since January 1, 2008 we took delivery of five vessels and have two vessels under purchase contract. This will bring our operational fleet to 43 vessels comprised of 23 multipurpose tweendeckers and 20 handymax/handysize bulk carriers; and we are continuing to look for suitable vessel acquisitions in the second hand market.

"Our program to build six Roymar Class 34,000 dwt multipurpose vessels with retractable tweendecks is progressing with the laying of the keel of the first vessel taking place this month. We are scheduled to receive delivery of two vessels in 2009 and four vessels in 2010.

"TBS is strongly positioned to participate in the expanding globalization of world trade; particularly in the project business relating to the steel, mining, energy and construction industries. We have strong franchises in Latin America, East Asia, the Middle East and Africa. Our TBS fleet of multipurpose tweendeckers is uniquely suited to the transportation of project cargoes; and our portside and inland logistics services enable TBS to provide complete solutions for the project's transportation requirements.

"Looking at 2008 and beyond, we are confident that TBS is positioned to continue benefiting from the positive fundamentals of our business growth model."

Ferdinand V. Lepere, Executive Vice President and Chief Financial Officer commented:

"For the full year 2007, TBS demonstrated its net income growth potential which increased 151.2% to $98.2 million in 2007 from $39.1 million in 2006 and its strong cash flow generation capacity as our EBITDA, which is a non-GAAP financial measure, increased by 72.9% to $144.0 million from $83.3 million in 2006. Our strong cash flow generation and sufficient access to bank financing, enabled us to accommodate our fleet expansion program. We are particularly pleased with the support from our banks, as TBS has established new credit facilities at competitive terms to accommodate our continued fleet expansion."

Fourth Quarter 2007 Results:

For the fourth quarter ended December 31, 2007, total revenues were $115.2 million, an increase of 76.1% compared to $65.4 million for the same period in 2006. Net income for the fourth quarter of 2007 was $35.2 million, an increase of 144.4% compared to $14.4 million for the same period in 2006.

Earnings per share on a diluted basis were $1.26 for the fourth quarter of 2007, calculated based on 28,088,072 shares, compared to $0.51 for the same period in 2006, calculated based on 28,088,310 shares.

EBITDA, which is a non-GAAP measure, increased 89.7% to $47.8 million for the fourth quarter of 2007 from $25.2 million in the same period in 2006. EBITDA for the fourth quarter of 2006 includes non-recurring items. Please see "Non-GAAP Reconciliations- EBITDA" following the financial statements included in this press release for a reconciliation of EBITDA to net income.

An average of 34 vessels (excluding off-hire) were operated during the fourth quarter of 2007 compared to 32 vessels (excluding off-hire) during the same period in 2006.

Results for the Full Year ended December 31, 2007:

For the year ended December 31, 2007, total revenues were $355.6 million, an increase of 40.2% compared to $253.6 million for the same period in 2006. Net income for the full year 2007 was $98.2 million, an increase of 151.2% compared to $39.1 million for the same period in 2006. Earnings per share on a diluted basis were $3.50 for the full year 2007, calculated based on 28,066,736 shares, compared to $1.39 for the same period in 2006, calculated based on 28,088,310 shares.

Net income and earnings per share for the full year 2007 included a gain of $6.0 million in the second quarter 2007 from the sale and insurance recovery of the Huron Maiden and a loss of $800,000 in the first quarter 2007 on the sale of the Maya Princess. Net income and earnings per share for the full year 2006 included a charge of $2.7 million for re-engineering of certain of TBS' business processes, $1.3 million charge for write-off of deferred finance costs and $2.1 million in early prepayment fees offset by a gain of $2.2 million from the sale of Dakota Belle. Before these non-recurring items, earnings per share would have been $3.31 and $1.53 respectively for 2007 and 2006.

EBITDA, which is a non-GAAP measure, increased by 72.9% to $144.0 million for the full year 2007 from $83.3 million in 2006. EBITDA for the full years of 2007 and 2006 includes the non-recurring items mentioned above. Please see "Non-GAAP Reconciliations- EBITDA" following the financial statements included in this press release for a reconciliation of EBITDA to net income.

Revenues:

Total revenues of $355.6 million for the full year 2007 include voyage revenues of $264.2 million, time charter revenues of $88.4 million and other revenue of $3.0 million.

An average of 33 vessels (excluding off-hire) were operated during the full year 2007, as well as during the same period in 2006.

Voyage Revenues:

Voyage revenues for the full year 2007 were $264.2 million, an increase of $75.2 million or 39.8%, from $189.0 million during the same period in 2006.

Revenue tons carried (excluding aggregates) increased 220,065 tons, or 6.8% to 3,447,014 tons for the full year 2007, from 3,226,949 tons for the same period in 2006. Freight rates, excluding aggregates, increased $14.27 per ton, or 25.8%, to $69.52 per ton for the full year 2007 from $55.25 per ton for the same period in 2006.

Our average daily voyage Time Charter Equivalent, which is an industry standard metric reflecting the daily net earnings of a voyage after deducting all of the voyage expenses from the voyage revenues, was $20,679 per day for 2007, an increase of 63.5% from $12,650 per day for the same period in 2006 and an increase of 6.3% from $19,452 per day during the nine months of 2007, indicative of the continued strength in the market.

Revenue tons carried (including aggregates) increased by 2,253,694 tons, or 51.6%, to 6,621,473 for the full year 2007, from 4,367,779 tons for the same period in 2006. This increase is primarily due to a rise in aggregate cargo tons carried of 2,033,629 tons.

Time Charter Revenues:

Time charter revenues increased by $25.3 million, or 40.1%, to $88.4 million for the full year 2007, from $63.1 million for the same period in 2006.

Our average daily Time Charter Equivalent, which is an industry standard metric reflecting time charter out revenues during the period reduced by commissions, was $22,374 per day for the full year 2007, an increase of 64.5% from $13,604 for the same period in 2006 and an increase of 16.1% from $19,267 per day during the nine months of 2007, indicative of continued market strength.

Expenses:

Total operating expenses for the full year 2007, increased by $52.6 million, or 26.1%, to $254.0 million from $201.4 million for the same period in 2006. However, as a percentage of revenue, total operating expenses decreased by 8.0% to 71.4% from 79.4%.

Voyage expenses, which include fuel, commissions, port call charges and stevedoring increased by $9.2 million, or 11.0%, to $92.5 million for the full year 2007, primarily due to an increase in commission expense, resulting from higher voyage revenues and an increase in fuel expense due to higher fuel costs.

Vessel expenses, which consist of operating expenses relating to owned and controlled vessels, such as crewing, stores, lubes, repairs and maintenance, registration taxes and fees, insurance and charter hire for vessels that were chartered-in and those we operated under sale-leaseback, increased by $22.8 million, or 36.1%, to $86.0 million for the full year 2007, as compared to $63.2 million for the same period in 2006. Owned and controlled vessel expense increased by $12.1 million reflecting the higher number of vessels in the fleet as well as the higher cost of lubes, maintenance and repairs. Chartered-in vessel expense increased by $6.4 million, as rates paid for chartered-in vessels increased to $24,629 per day in 2007 from $14,962 per day in 2006 reflecting market conditions, partially offset by a decrease of 15.7% in the number of chartered-in days, as the higher number of vessels in the controlled fleet decreased the demand for chartered-in vessels. In 2007, there was a $6.1 million of charter-hire expense relating to two vessels that are operated under a sale and leaseback agreement which commenced in January 2007.

General and administrative expenses for the full year 2007, increased by $11.4 million, or 41.8%, to $38.7 million, reflecting primarily the increase in personnel due to the growth in business.

Recent Fleet Developments:

TBS' current operational fleet is comprised of 41 vessels, including 22 multipurpose tweendeckers and a combination of 19 handysize and handymax bulk carriers.

The Company expects to take delivery of one multipurpose tweendecker it has agreed to acquire (the M.V. Ottawa Princess) by the end of the first quarter of 2008, and one handymax bulk carrier (the M.V. Canarsie Princess) by the end of the second quarter of 2008.

Once these deliveries take place, TBS's fleet will be comprised of 43 vessels with an aggregate of 1,268,500 dwt, consisting of 23 tweendeckers and 20 handymax/ handysize bulk carriers.

During 2007, the Company also successfully completed the retrofitting of the M.V. Seminole Princess and the M.V. Laguna Belle with tweendecks in holds 2, 3 and 4 further enhancing the versatility and flexibility of its fleet.

The expansion of the fleet in a period of strong freight rates and increased customer demand will enable the Company to enhance their revenue and profit generation capability in 2008 and beyond.

In 2007, TBS exercised its options to purchase seven of its multipurpose tweendeck vessels for $2.85 million each. These seven vessels were part of TBS' operational fleet and since December 2003 were under a 66-month sale-leaseback arrangement, which provided TBS with purchase options. By exercising these purchase options, TBS now owns these vessels outright instead of operating them under a capital lease arrangement and will be able to benefit from the additional equity that has built up in these assets.

Fleet Expansion and Newbuilding Program:

In March 2007, TBS entered into agreements with China Communications Construction Company Ltd. and Nantong Yahua Shipbuilding Co., Ltd. to build six newly designed multipurpose vessels with retractable tweendeckers at a contract purchase price of $35.4 million per vessel, with scheduled delivery of two vessels in 2009 and four vessels in 2010. On March 29, 2007, TBS entered into a new $150 million term loan credit agreement with a syndicate of lenders led by The Royal Bank of Scotland to finance the building and purchase of these six new multipurpose vessels.

As of December 31, 2007, TBS has made payments of $55.9 million toward the purchase price of these six vessels and $2.0 million for design and professional fees.

TBS 2008 Drydock and Vessel Upgrade Program:

In the last three years, the TBS owned and controlled fleet has grown to 36 vessels at December 31, 2007, with an average age of about 21 years. The Company made the strategic decision to embark in 2007 on an accelerated drydock and vessel upgrade program anticipating steel renewals that might be required during the next five to ten years. This program resulted in increased drydocking days in 2007 relative to prior years.

During the fourth quarter of 2007, TBS had 4 vessels in drydock for a total of 221 days compared to 111 days in the same period in 2006. During 2007, TBS had 21 vessels in drydock for a total of 1,044 days as compared to 304 days for the same period in 2006. Drydocking costs for the fourth quarter of 2007 and the year ended December 31, 2007 were $4.9 million and $23.3 million, respectively.

For 2008, TBS' plan is to drydock 17 vessels for approximately 526 drydocking days with a steel renewal of about 2,725 metric tons at a total cost of approximately $17.3 million.

Anticipated drydocking schedule for the first quarter of 2008 is as follows:

During the first quarter of 2008, TBS anticipates a total of about 139 drydock days as follows: 16 drydock days relating to one vessel that entered drydock during December 2007, and 123 days relating to four vessels that will begin their drydock during the first quarter 2008.

Conference call and webcast:

On Thursday, March 13, 2008 at 10:00 a.m. EDT, the company's management will host a conference call to discuss the results.

Conference call details:

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1-888-713-4209 (from the US) or 1-617-213-4863 (International Dial in). Participant Passcode: 12145074. The conference call will also be webcast live on the company's website: www.tbsship.com by clicking on the webcast link. Participants may pre-register for the call at "Pre-Register Here." Pre-registrants will be issued a PIN number to use when dialing into the live call which will provide quick access to the conference by bypassing the operator upon connection.

Webcast:

There will also be a live and then archived slides and audio webcast of the conference call on the company's website www.tbsship.com, which can be accessed by clicking on the webcast link. As soon as practicable, the webcast and the corresponding slides will be archived and will also be accessible on our website.

Replay:

A telephonic replay of the conference call will be available from 12:00 p.m. EDT on Thursday, March 13, 2008 until Thursday, March 20, 2008 by dialing 1-888-286-8010 (from the US) or 1-617-801-6888 (International Dial In). Access Code: 52508153. A replay of the webcast will be available soon after the completion of the call.

                  Consolidated Statements of Operations
                   For the Fourth Quarter and Full Year
                     Ended December 31, 2007 and 2006
          (In thousands, except for share and per share amounts)



                       Three Months Ended              Year Ended
                         December 31,                  December 31,
                   -------------------------     -------------------------
                      2007           2006           2007           2006
                   ----------     ----------     ----------     ----------
 Revenue:
  Voyage
   revenue         $   79,106     $   48,004     $  264,193     $  189,012
  Time charter
   revenue             33,618         17,203         88,365         63,114
  Other revenue         2,432            227          3,047          1,460
                   ----------     ----------     ----------     ----------
   Total
    revenue           115,156         65,434        355,605        253,586
                   ----------     ----------     ----------     ----------

 Operating
  expenses:
  Voyage               28,934         19,489         92,482         83,254
  Vessel               23,268         13,482         85,958         63,205
  Depreciation
   and amortization
   of vessels and
   other fixed assets  10,153          8,081         36,022         29,867
  General and
   administrative      15,899          8,007         38,703         27,256
  Loss/(gain)
   from sale of
   vessel (1)               -              -            814         (2,180)
                   ----------     ----------     ----------     ----------
   Total
    operating
    expenses           78,254         49,059        253,979        201,402
                   ----------     ----------     ----------     ----------

 Income from
  operations           36,902         16,375        101,626         52,184
                   ----------     ----------     ----------     ----------

 Other
  (expenses)
  and income:
  Interest expense     (2,622)        (3,030)       (10,394)       (11,577)
  Loss on
   extinguishment
   of debt (2)              -              -              -         (3,357)
  Gain on total
   constructive
   loss of
   vessel (3)               -              -          6,034              -
  Other income            874          1,009            983          1,810
                   ----------     ----------     ----------     ----------
  Total other
   (expenses)
   and income          (1,748)        (2,021)        (3,377)       (13,124)
                   ----------     ----------     ----------     ----------
Net income         $   35,154     $   14,354     $   98,249     $   39,060
                   ==========     ==========     ==========     ==========

Earnings per
  share:
Net income per
  common share:
  Basic            $     1.27     $     0.51     $     3.51     $     1.40
  Diluted          $     1.26     $     0.51     $     3.50     $     1.39
Weighted
 average common
 shares
 outstanding:

  Basic (4)        28,044,310     28,013,310     28,029,340     27,998,843
  Diluted          28,088,072     28,088,310     28,066,736     28,088,310



 Operating Data for the Three Months and Year Ended December 31, 2007 and
                                   2006



                                         Three Months
                                            Ended            Year Ended
                                         December 31,        December 31,
                                        ---------------    ----------------
                                         2007     2006      2007      2006
                                        ------   ------    ------    ------
Other Operating Data:
  Controlled vessels (at end of
   period) (5)                              36       34        36        34
  Chartered vessels (at end of
   period) (6)                               1        1         1         1
  Freight Voyage days (7)                2,145    1,937     8,209     7,818
  Vessel days (8)                        3,439    3,116    13,236    12,701
  Tons of cargo shipped (9)              1,838    1,171     6,621     4,368
  Revenue per ton (10)                $  43.05 $  41.00 $   39.90 $   43.27
  Tons of cargo shipped, excluding
  Aggregates (9) (11)                      851      701     3,447     3,227
  Revenue per ton, excluding
  Aggregates (10) (11)                $  84.50 $  62.91 $   69.52 $   55.25
  Chartered-out days                     1,019    1,021     3,659     4,301
  Chartered-out rate per day          $ 32,991 $ 16,849 $  24,150 $  14,674
  TCE per day - Freight Voyages (12)  $ 24,149 $ 13,806 $  20,679 $  12,650
  TCE per day - Time Charters-Out
   (13)                               $ 30,426 $ 15,894 $  22,374 $  13,604


(1)   The 2007 and 2006 loss (gain) on sale of vessels represents the loss
      on the sale of the Maya Princess of $0.8 million and the gain on the
      sale of the Dakota Belle of $2.2 million.

(2)   In 2006 the loss on early extinguishment of debt represents the
      write-off of unamortized debt finance costs of $1.3 million and the
      payment of loan prepayment fees of $2.1 million when we repaid most
      of our then existing credit facilities in July 2006 with our $140.0
      million syndicated credit facility.

(3)   For the year ended December 31, 2007, we had a gain on the sale and
      insurance recovery of the Huron Maiden.  The vessel was severely
      damaged in a grounding accident on an uncharted rock while on
      passage near Indonesia on March 9, 2007.  On April 4, 2007, the
      vessel was declared a constructive total loss.  Accordingly, we
      received a net amount of $8.0 million from our Hull &
      Machinery/Increased Value insurances after a scrap value credit of
      $2.0 million.  We retained the proceeds on the sale of the vessel
      for scrap, which was sold and delivered to the buyer on May 4, 2007
      for $2.8 million.  After expenses in connection with the accident
      and the sale of the vessel of approximately $1.2 million we realized
      a gain on the casualty and sale of the vessel of approximately
      $6.0 million.

(4)   Diluted weighted average common shares outstanding for 2007 and 2006
      includes 37,396 and 89,467 weighted average common shares,
      respectively, relating to the restricted Class A common shares
      granted to our employees and independent directors.

(5)   Controlled vessels are vessels that we own or charter-in with an
      option to purchase. As of December 31, 2007, two vessels in our
      controlled fleet were chartered-in with an option to purchase.

(6)   Represents both vessels that we charter-in under short-term charters
      (less than one year at the start of the charter) and charter-in of
      vessels under long-term charters without an option to purchase.

(7)   Represents the number of days controlled and time-chartered vessels
      were operated by us, performing freight voyages excluding off-hire
      days.  Excludes time charter out days.

(8)   Represents the number of days that relate to vessel expense for
      controlled and time-chartered vessels. Vessel expense relating to
      controlled vessels is based on a 365-day year. Vessel expense
      relating to chartered-in vessels is based on the actual number of
      days we operated the vessel, excluding off-hire days.

(9)   In thousands.

(10)  Revenue per ton is a measurement unit for cargo carried that is
      dependent upon the weight of the cargo and has been calculated using
      number of tons on which revenue is calculated, excluding time
      charter revenue.

(11)  Aggregates represent high-volume, low-freighted cargo. Including
      aggregates, therefore, can overstate the amount of tons that we
      carry on a regular basis and reduce our revenue per ton. We
      regularly carried aggregates in all years except 2005 when we
      temporarily suspended the transport of aggregates. We believe that
      the exclusion of aggregates better reflects our cargo shipped and
      revenue per ton data for our principal services.

(12)  Time Charter Equivalent of "TCE" rates are defined as voyage revenue
      less voyage expenses during the year divided by the number of
      available days during the year.  Voyage expenses include the
      following expenses:  fuel, port call, commissions, stevedore and
      other cargo related as well as miscellaneous voyage expenses.  No
      deduction is made for vessel or general and administrative expenses.
      TCE is an industry standard for measuring and analyzing fluctuations
      between financial periods and as a method of equating TCE revenue
      generated from a voyage charter to time charter revenue.

(13)  Time Charter Equivalent of "TCE" rates for vessels that are time
      chartered out, are defined as time charter revenue during the year
      reduced by commissions divided by the number of available days
      during the year.  No deduction is made for vessel or general and
      administrative expenses.  TCE is an industry standard for measuring
      and analyzing fluctuations between financial periods and as a method
      of equating TCE revenue generated from a voyage charter to time
      charter revenue.  No voyage expenses are deducted because they are
      not applicable.

Balance Sheet Data

                                       December 31,      December 31,
                                            2007             2006
                                       --------------    -------------
Balance Sheet Data (In Thousands):
 Cash and cash equivalents            $        30,498    $      12,007
 Working capital (deficit)                      1,744           (3,816)
 Total assets                                 559,113          403,091
 Long-term debt, including current
  portion                                     180,166          125,804
 Obligations under capital leases,
  including current portion (A)                     0           21,355
 Total shareholders' equity                   319,563          223,604

(A) In December 2007, we exercised our purchase options and acquired the
    seven vessels under capital lease.

Non-GAAP Reconciliations
Please find below TBS' EBITDA reconciliation for the three months and year
ended December 31, 2007 and 2006


                             Three Months Ended       Year Ended
                               December 31,          December 31,
                             ------------------    ------------------
                              2007       2006       2007       2006
                             -------    -------    -------    -------
EBITDA Reconciliation (In
 millions):
  Net Income                 $  35.2    $  14.4    $  98.2    $  39.1
  Net interest expenses          2.5        2.7        9.8       14.3
  Depreciation                  10.1        8.1       36.0       29.9
                             -------    -------    -------    -------

EBITDA                       $  47.8    $  25.2    $ 144.0    $  83.3
                             =======    =======    =======    =======



Reconciliation of Net Income to Income before non-recurring items for the
three months and year 5 ended December 31, 2007 and 2006:


                       Three Months Ended               Year Ended
                         December 31,                  December 31,
                   --------------------------    -------------------------
                      2007           2006           2007           2006
                   -----------    ----------     ----------     ----------
Income before
 non-recurring
 items:
Reconciliation
 (In millions)
  Net Income       $      35.2    $     14.4     $     98.2     $     39.1
  Loan prepayment
   fees paid                 -          (0.2)             -            2.1
  Non cash
   write-off of
   unamortized
     Deferred finance
      costs on
      refinancing            -             -              -            1.3
  Loss/(gain)
   on sale of
   vessels                   -             -            0.8           (2.2)
  Gain on total
   constructive
   loss of
   vessel                    -             -           (6.0)             -
  Re-engineering
   costs                     -           0.5              -            2.7
                   -----------    ----------     ----------     ----------

Income before
 Gain/Loss on
 sale of
 vessels and
 other
 non-recurring
 items             $      35.2    $     14.7     $     93.0     $     43.0
                   ===========    ==========     ==========     ==========

Earning per
 share (before
 Gain/Loss on
 sale of
 vessels and
 other non-recurring
 items)
  Basic            $      1.27    $     0.52     $     3.31     $     1.54
  Diluted          $      1.26    $     0.52     $     3.31     $     1.53


Weighted
 average common
 shares
 outstanding
  Basic             28,044,310    28,013,310     28,029,340     27,998,843
  Diluted           28,088,072    28,088,310     28,066,736     28,088,310




Forward Looking Statements "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 the company's view, could cause actual results to differ materially from the forward looking statements contained in this press release are the following:

--  changes in demand;
--  a material decline or prolonged weakness in rates in the shipping
    market;
--  changes in rules and regulations applicable to the shipping industry,
    including, without limitation, legislation adopted by international
    organizations such as the International Maritime Organization and the
    European Union or by individual countries;
--  actions taken by regulatory authorities;
--  changes in trading patterns significantly impacting overall vessel
    tonnage requirements;
--  changes in the typical seasonal variations in charter rates;
--  increases in costs including without limitation: changes in production
    of or demand for oil and petroleum products, generally or in particular
    regions; crew wages, insurance, provisions, repairs and maintenance;
--  changes in general domestic and international political conditions;
--  changes in the condition of the company's vessels or applicable
    maintenance or regulatory standards (which may affect, among other things,
    the company's anticipated drydocking or maintenance and repair costs);
--  delays in our drydocking and vessel upgrade program, which could
    increase vessel drydock days or the costs associated with the program;
--  availability to us and to China Communications Construction Company
    Ltd./ Nantong Yahua Shipbuilding Co., Ltd. of satisfactory financing, China
    Communications Construction Company Ltd./ Nantong Yahua Shipbuilding Co.,
    Ltd.'s ability to complete and deliver the vessels on the anticipated
    schedule and the ability of the parties to satisfy the conditions in the
    shipbuilding agreements; and
--  other factors listed from time to time in the company's filings with
    the Securities and Exchange Commission, including, without limitation, its
    registration on Form S-1, its Annual Report on Form 10-K for the period
    ended December 31, 2006  and its subsequent reports on Form 10-Q and Form 8-
    K.
    

About TBS International Limited:

TBS is an ocean transportation services company that offers worldwide shipping solutions through liner, parcel and bulk services, and vessel chartering. TBS has developed its business around key trade routes between Latin America and China, Japan and South Korea, as well as select ports in North America, Africa and the Caribbean. TBS provides frequent regularly scheduled voyages in its network, as well as cargo scheduling, loading and discharge for its customers.

Visit our website at www.tbsship.com

Contact Information

  • For more information, please contact:

    Company Contact:
    Ferdinand V. Lepere
    Executive Vice President and Chief Financial Officer
    TBS International Limited
    Tel. 914-961-1000
    InvestorRequest@tbsship.com

    Investor Relations / Media:
    Nicolas Bornozis
    Capital Link, Inc. New York
    Tel. 212-661-7566
    nbornozis@capitallink.com