TBS International Limited
Consolidated Statements of Income for the Third Quarter and for the Nine
months ended of 2005 and 2006
TBS International Limited
Consolidated Statements of Income s
(In thousands, except for share and per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2005 2006 2005 2006
---------- ---------- ---------- ----------
Revenue:
Voyage revenue $ 39,243 $ 47,880 $ 129,364 $ 141,008
Time charter revenue 19,263 16,915 50,487 45,911
Other revenue 513 607 598 1,233
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Total revenue 59,019 65,402 180,449 188,152
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Operating expenses:
Voyage 17,540 21,857 53,862 63,765
Vessel 16,063 16,324 52,247 52,754
Depreciation and
amortization 5,486 7,211 11,792 20,560
Management and agency
fees 59 2,624
General and
administrative 5,016 6,883 11,486 19,250
Gain from sale of vessel (2,180) (2,180)
---------- ---------- ---------- ----------
Total operating expenses 44,164 50,095 132,011 154,149
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Income from operations 14,855 15,307 48,438 34,003
---------- ---------- ---------- ----------
Other (expenses) and
income:
Interest expense (2,817) (6,291) (6,621) (11,903)
Other income 239 198 411 801
---------- ---------- ---------- ----------
Total other (expenses)
and income (2,578) (6,093) (6,210) (11,102)
---------- ---------- ---------- ----------
Net income 12,277 9,214 42,228 22,901
Allocated amount to
preference shares (6,092)
---------- ---------- ---------- ----------
Net income available for
common shareholders $ 12,277 $ 9,214 $ 36,135 $ 22,901
========== ========== ========== ==========
Earnings per share:
Net income per common
share:
Basic $ 0.44 $ 0.33 $ 1.82 $ 0.82
Diluted $ 0.44 $ 0.33 $ 1.57 $ 0.82
Weighted average common
shares outstanding:
Basic (1) 27,983,829 28,013,310 19,809,880 27,993,968
Diluted 28,088,329 28,088,310 23,037,937 28,088,310
Operating Data for the Third Quarter and for the Nine Months 2005 and 2006
Please find below TBS's operating data for the third quarter and for the
nine months ended September 30, 2005 and 2006:
Three Months Nine Months
Ended Ended
September 30, September 30,
----------------- -----------------
2005 2006 2005 2006
-------- -------- -------- --------
Other Operating Data:
Controlled vessels (at end of period)
(2) 29 31 29 31
Chartered vessels (at end of period)
(3) 6 3 6 3
Voyage days (4) 2,866 3,102 7,667 9,161
Vessel days (5) 2,925 3,201 7,907 9,585
Tons of cargo shipped (6) 751 1,133 2,219 3,197
Revenue per ton (7) $ 52.28 $ 42.25 $ 58.29 $ 44.11
Tons of cargo shipped, excluding
aggregates (6) (8) 689 779 2,141 2,526
Revenue per ton, excluding
aggregates (7) (8) $ 56.21 $ 57.18 $ 60.12 $ 53.13
Chartered-out days 1,239 1,118 2,888 3,280
Chartered-out rate per day $ 15,546 $ 15,129 $ 17,482 $ 13,997
(1) Basic weighted average common shares outstanding for the three months
ended September 30, 2006 includes 288,853 common shares issuable on
the exercise of warrants. These shares are treated as outstanding for
purposes of basic earnings per share for the period beginning February
8, 2005, because on that date the exercise condition of the warrants
were satisfied and the shares subject to the exercise of the warrants
are issuable for nominal consideration.
(2) Controlled vessels are vessels that we own or charter-in with an
option to purchase. As of September 30, 2006, seven vessels in our
controlled fleet were chartered-in with an option to purchase.
(3) Vessels that we charter-in without an option to purchase.
(4) Represents the number of days controlled and time-chartered vessels
were operated by us, excluding off-hire days.
(5) 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.
(6) In thousands.
(7) 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.
(8) 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 believe that
the exclusion of aggregates better reflects our cargo shipped and
revenue per ton data for our principal service.
Balance Sheet Data:
Please find below TBS's selected balance sheet data for the periods ending
December 31, 2005 and September 30, 2006
December 31, September 30,
2005 2006
-------------- --------------
Balance Sheet Data (In Thousands):
Cash and cash equivalents $ 27,158 $ 15,732
Working capital (5,056) (3,706)
Total assets 342,442 341,747
Long-term debt, including current 105,737 91,746
portion
Obligations under capital leases,
including current portion 24,703 22,304
Total shareholders' equity 177,789 200,985
NON-GAAP RECONCILIATIONS
Please find below TBS' EBITDA reconciliation for the three months ended
September 30, 2005 and 2006 and for the nine months ended September 30,
2005 and 2006
Three Months Nine Months
Ended Ended
September 30, September 30,
2005 2006 2005 2006
------ ------ ------ ------
EBITDA Reconciliation
(In millions):
Net Income $ 12.3 $ 9.2 $ 42.2 $ 22.9
Net interest expense 2.6 6.2 6.2 11.5
Depreciation 5.5 7.2 11.8 20.6
------ ------ ------ ------
EBITDA $ 20.4 $ 22.6 $ 60.2 $ 55.0
====== ====== ====== ======
Please find below TBS' reconciliation of net income to income before non-
recurring items for the three and nine months ended September 30, 2006
Three Months Nine Months
Ended Ended
Income before non-recurring items September 30, September 30,
2006 2006
--------------- ---------------
Reconciliation (In millions):
Net Income $ 9.2 $ 22.9
Re-engineering costs 1.2 2.3
Loan prepayment fees paid 2.1 2.1
Non cash write-off of unamortized
deferred finance costs on refinancing 1.3 1.3
Gain on sale of vessel (2.2) (2.2)
--------------- ---------------
Income before non-recurring
items $ 11.6 $ 26.4
=============== ===============
Earnings per share
(before non recurring items)
Basic $ 0.41 $ 0.94
Diluted $ 0.41 $ 0.94
Weighted average common shares
outstanding
Basic 28,013,310 27,993,968
Diluted 28,088,310 28,088,310
During the three and nine months ended September 30, 2006 we incurred costs
related to outside consultants who are assisting us in reengineering
certain of our business processes to better meet our business needs as we
grow, paid loan prepayment fees to our previous lenders and wrote-off
deferred financing costs associated with loans made by the previous lenders
when we refinanced substantially all our debt to reduce our average
borrowing costs and increase our liquidity. We also sold the vessel Dakota
Belle for a gain of $2.2 million. We believe that these items are non-
recurring in nature and their exclusion provides a better financial measure
of our operating results for the three and nine months ended September 30,
2006.
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); and
-- other factors listed from time to time in the company's filings with
the Securities and Exchange Commission, including, without limitation, its
Annual Report on Form 10-K for the period ended December 31, 2005 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 E-mail: nbornozis@capitallink.com