Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q1 2007 Earnings Presentation
24 slides from Genco Shipping & Trading's earnings presentation, May 3, 2007
Slide 1: Genco Shipping & Trading Limited Q1 2007 Earnings Call
Genco Shipping & Trading Limited Q1 2007 Earnings Call May 3, 2007
Slide 2: Forward Looking Statements
Forward Looking Statements "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements ar
Slide 3: Agenda
Agenda First Quarter 2007 and Year to Date Highlights Financial Overview Industry Overview Conclusions 05/03/07 3
Slide 4: First Quarter 2007 and Year to Date Highlights
First Quarter 2007 and Year to Date Highlights
Slide 5: First Quarter 2007 and Year to Date Highlights
First Quarter 2007 and Year to Date Highlights Net Income of $19.8 million for the first quarter of ‘07 ― Basic and diluted earnings per share of $0.78 Net Income of $16.3 million for the first quarter of ’07 excluding the gain on the sale of the Genco Glory ― Basic and diluted earnings per shar
Slide 6: Increased Time Charter Coverage
Increased Time Charter Coverage Increased time charter coverage to 92% for the remainder of 2007 and 50% for 2008 as we reached agreements on the following time charters: Vessel Charterer Duration T/C Rate (1) Genco Leader AS Klaveness 23 to 25 Months 25,650 Genco Acheron STX Panocean 11 to 13 Mon
Slide 7: Fleet Employment
Fleet Employment Vessel Name Year Built Charterer Time Charter Rate ($) (1) Charter Expiration(2) Panamax Genco Beauty 1999 Cargill 29,000 / 31,500 June, 2007 / 23 to 26 Months from Delivery (3) Genco Knight 1999 BHP/SK Shipping Ltd. 29,000 / 37,700 May, 2007 / 23 to 25 Months from Delivery (4) Genc
Slide 8: Financial Overview
Financial Overview
Slide 9: Year to Date Earnings
Year to Date Earnings Three Months Ended March 31, 2007 March 31, 2006 (Dollars in thousands, except share and per share data) (unaudited) INCOME STATEMENT DATA: Revenues $ 37,220 $ 32,572 Operating expenses: Voyage expenses 1,413 1,104 Vessel operating expenses 6,389 4,559 General and administrativ
Slide 10: March 31, 2007 Balance Sheet
March 31, 2007 Balance Sheet March 31, 2007 December 31, 2006 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash $ 87,158 $ 73,554 Current assets, including cash 94,318 Dwt 88,118 Total assets 577,342 578,262 Current liabilities, including current portion of long-term 12,504 15,173 Total lo
Slide 11: 1st Quarter Highlights
1st Quarter Highlights Three Months Ended March 31, 2007 March 31, 2006 (unaudited) FLEET DATA: Total number of vessels at end of period 19 17 Average number of vessels (1) 19.6 17.0 Total ownership days for fleet (2) 1,762 1,530 Total available days for fleet (3) 1,731 1,521 Total operating days fo
Slide 12: Strong Balance Sheet
Strong Balance Sheet Selected Financial Information Pro Forma 03/31/07* (Dollars in thousands) Balance Sheet Liquidity Position Cash $70,316 Revolving Credit Facility $650,000** Debt $206,233 Shareholders’ Equity $339,325 Undrawn Facilities $443,767 Cash $70,316 Net Debt $135,917 Total Capitalizatio
Slide 13: 2007 Estimated Quarterly Break-Even Levels
2007 Estimated Quarterly Break-Even Levels(1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) $ 3,682 Dwt $ 3,682 Year Built General & Administrative(4) 1,276 1,577 Management Fees(5) 231 231 Dry Docking (6) 500 - Interest Expense (7) 1,946 2,004 Depreciation(8) -
Slide 14: Dividend Declaration & Policy
Dividend Declaration & Policy Declared a Q1 2007 dividend of $0.66 per share payable on or Period Declared Dividend (1) about May 31st, 2007 to all Q3 2005 $0.60 shareholders of record as of May 17th, 2007 Q4 2005 $0.60 Cash reserves are determined by our Board of Directors Q1 2006 $0.60 ― Fleet
Slide 15: Industry Overview
Industry Overview
Slide 16: Drybulk Indices
05/03/07 W ee W k 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 ee W 1 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 k W 1 ee k ee W 3 k ee W 3 k Drybulk Indices ee W 5 k ee W 5 k ee W 7 k e W 7 W ek ee ee 9 W k9 ee k W 11 k ee (BDI Points) k (BPI Points) W 11 ee W 13 k ee W 13 k ee W 15 k ee W 15 k ee
Slide 17: Chinese Steel Production Continues to Drive the Market
Chinese Steel Production Continues to Drive the Market Continued strong demand resulted in YOY growth for Chinese steel production and iron ore imports at 24% for the first quarter of 2007 Peak levels of port congestion during the last half of 2006 and first quarter of 2007 pushed rates up and h
Slide 18: Drybulk Demand Fundamentals Remain Strong
Drybulk Demand Fundamentals Remain Strong Imports by Country – Major Bulks (5) Chinese GDP grew by 11.1% (million tons, %) YOY for Q1 2007, 0.7% higher China EU Japan than the same period last year(1) SK TW USA Indian GDP growth expected at INDIA Middle East other 9.2% for 2006, up from other 16
Slide 19: What will drive the market?
What will drive the market? Strong steel production over the past quarter combined with indications of largely unchanged ore inventories are positive leading indicators for iron ore imports into China Quota systems imposed on Australian ports should eventually ease congestion, but is likely to t
Slide 20: Conclusions
Conclusions
Slide 21: Conclusions
Conclusions Strong time charter coverage at attractive rates for 2007 and 2008 Cash dividend policy along with cash reserves intended to fund fleet replacement and future growth Strong balance sheet with low leverage ― $514 million of liquidity to be used primarily to fund growth ― Pro forma n
Slide 22: Appendices
Appendices
Slide 23: Appendix I Pro Forma Reconciliation
Appendix I Pro Forma Reconciliation 03/31/07 (Dollars in thousands) 03/31/07 Actual Adjustment* 03/31/07 Pro Forma Cash $87,158 ($16,842) $70,316 Debt $206,233 - $206,233 Net Debt** $119,075 - $135,917 Shareholders’ Equity $356,167 ($16,842) $339,325 Total Capitalization $475,242 - $475,242 * March
Slide 24: Appendix II Net Debt & Total Capitalization Reconciliation
Appendix II Net Debt & Total Capitalization Reconciliation Pro Forma 03/31/07* (Dollars in thousands) 03/31/07 Pro Forma Debt $206,233 Less: Pro Forma Cash* $70,316 Pro Forma Net Debt $135,917 Plus: Pro Forma Shareholders’ Equity* $339,325 Total Pro Forma Capitalization $475,242 * March 31, 2007 pro
Genco Shipping & Trading — Q1 2007 Earnings Presentation on 6ix