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