Global Ship Lease Inc New · NYSE:GSL
Global Ship Lease Inc New — Global Ship Lease — Q1 2020 Earnings Presentation
26 slides from Global Ship Lease Inc New's earnings presentation, May 12, 2020
Slide 1: First Quarter 2020 Results Presentation
First Quarter 2020 Results Presentation
Slide 2: Safe Harbor Statement
Safe Harbor Statement This communication contains forward-looking statements. Forward-looking statements provide Global Ship Lease’s current expectations or forecasts of future events. Forward-looking statements include statements about Global Ship Lease’s expectations, beliefs, plans, objectives, i
Slide 3: Disclaimer
Disclaimer This presentation does not constitute or form part of, and should not be construed as, an offer to sell or an invitation, solicitation, or inducement to purchase or subscribe for securities with respect to any transaction, nor shall it or any part of it form the basis of, or be relied on
Slide 4: Our Priority: Resilience in a Challenging Environment
Our Priority: Resilience in a Challenging Environment Safety and welfare of our personnel at sea and onshore Strong liquidity and healthy balance sheet Commercial and operational up-time of our ships Service excellence for our liner operator partners 3
Slide 5: Strong Contract Cover Insulates Against Impact of COVID-19
Strong Contract Cover Insulates Against Impact of COVID-19 Contracted revenue of $696 million and 2.3 Years TEU-Weighted Forward Cover 2020 2021 2022 2023 Vessel TEU Built Charter Agreed Charterer 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q GSL Keta 2,207 2003 4Q19/1Q20 OOCL / COSCO $9,400 $8,00
Slide 6: GSL's High-Reefer Vessels are Market-Leaders
GSL’s High-Reefer Vessels are Market-Leaders Reefer Plug Count by Size Segment of Global Fleet¹ Key Points ◼ Carriage of temperature controlled Bottom Quartile Average Median Max “reefer” cargo is fastest growing 2250 element of containerized trade Min. / max. plugs of GSL ships in size segment 2100
Slide 7: 1Q2020 Results and YTD Highlights
1Q2020 Results and YTD Highlights ◼ Continued to generate strong, predictable cashflow from contracted charter cover ➢ Operating revenue: $70.9 million ➢ Adjusted EBITDA¹: $39.6 million ➢ Normalized net income: $10.5 million, adjusted for a non-cash impairment charge of $7.6 million and $2.3 million
Slide 8: Industry Update
Industry Update oF GLOBAL SHIP LEASE
Slide 9: Big-Picture: Challenging 2020, with Shape & Timing of Recovery Hard to Call
Big-Picture: Challenging 2020, with Shape & Timing of Recovery Hard to Call GDP & World Container Trade 2000 – 2021F¹ Containerized Demand Growth by Tradelane¹ ? 250.0 20.0% 2016 2017 2018 2019(E) 2020(F) 2021(F) 15.0% 11.4% 9.4% 9.8% 10.2% 10.0% 8.8% Year-on-Year Growth 15.1% 15.0% 4.3% 200.0 4.0%
Slide 10: Freight Rate Indices for China Exports - 2019 & YTD2020
Freight Rate Index (1) 600 650 700 800 850 900 950 750 1,000 1,050 04-Jan-2019 Jan-2019 04-Feb-2019 Clarksons Research Feb-2019 04-Mar-2019 Mar-2019 04-Apr-2019 Apr-2019 04-May-2019 May-2019 04-Jun-2019 Jun-2019 04-Jul-2019 Jul-2019 04-Aug-2019 CCFI Composite Index Aug-2019 04-Sep-2019 Sep-2019 04-O
Slide 11: Charter Rates & Asset Values in Historic Context
Charter Rates & Asset Values in Historic Context Charter Rate & Asset Value Indices 2000 – 1Q2020¹ Same Indices, September 2016 – 1Q2020¹ 300 Newbuild Price Index 200 TC Rate Index Second Hand Price Index 190 250 180 Index ( 100 = average since Jan-2000) 170 Index ( 100 = September, 2016) 200 160 15
Slide 12: Mid-Size & Smaller Ships: Flexible Assets Forming the Backbone of Global Container Trades
Mid-Size & Smaller Ships: Flexible Assets Forming the Backbone of Global Container Trades Deployment of Sub-10,000 TEU Ships¹: Everywhere Deployment of 10,000+ TEU Ships¹: Arterial Trades Composition of Global Containerized Trade in 2019E² Key Points Intra-Regional (excl. Intra-Asia) 8.7% Total: 218
Slide 13: Difficult Near-Term Outlook, but Supply-Side Supportive of Subsequent Recovery
Difficult Near-Term Outlook, but Supply-Side Supportive of Subsequent Recovery Idle Fleet at Highest Levels Evolution of IdleSince Financial Crisis¹ Capacity¹ Ship Recycling Market Temporarily Closed¹ 2.7 12,000 + TEU 16.0% 700 5,100+ TEU 3.5% Scrapping-to-Fleet Ratio (Red Line) 7,600-11,999 TEU 13.
Slide 14: Q1 2020 Financials
Q1 2020 Financials oF GLOBAL SHIP LEASE
Slide 15: Consolidated Balance Sheet as at March 31, 2020 (unaudited)
Consolidated Balance Sheet as at March 31, 2020 (unaudited) GSL Consolidated Balance Sheets As of (expressed in thousands of U.S dollars except share data) March 31, December 31, 2020 2019 ASSETS CURRENT ASSETS Cash and cash equivalents 86,961 138,024 Restricted cash 4,569 3,909 Accounts receivable,
Slide 16: Consolidated Statement of Operations 1Q2020 (unaudited)
Consolidated Statement of Operations 1Q2020 (unaudited) GSL Consolidated Statement of Operations (expressed in thousands of U.S dollars except share data) Three months ended March 31, 2020 2019 OPERATING REVENUES Time charter revenues (include related party revenues of $37,676 and $34,633 for each o
Slide 17: Consolidated Cash Flow Statement 1Q2020 (unaudited)
Consolidated Cash Flow Statement 1Q2020 (unaudited) GSL Consolidated Statement of Cash Flows Three months ended March 31, (expressed in thousands of U.S dollars except share data) 2020 2019 Cash flows from operating activities: Net Income 1,500 10,389 Adjustments to reconcile net income to net cash
Slide 18: Updated CAPEX Guidance
Updated CAPEX Guidance ◼ Revisions to the dry-docking schedule disclosed in our 20-F ➢ Please refer to summary table below for revised guidance, updated May 11, 2020 ➢ Where possible, in order to minimize off-hire, we arrange for regulatory dry-dockings and upgrade work to be concurrent ◼ Upgrades i
Slide 19: Adjusted EBITDA Calculator (Illustrative)
Adjusted EBITDA Calculator (Illustrative) The table below presents our illustrative Adjusted EBITDA calculator for our current fleet for 2020 and 2021, based on historical performance, contracted revenue and assumed expenses 1 2020 2021 TEU Category 2 1 Spot Revenue days Spot Net Rate Revenue ($m) S
Slide 20: Summary
Summary oF GLOBAL SHIP LEASE
Slide 21: Resilience, Downside Cover, and Positioned for Recovery
Resilience, Downside Cover, and Positioned for Recovery ◼ Strong downside protection: debt service and CAPEX covered by contracted cashflow; negligible debt maturities before late 2022 ➢ $696 million of contracted revenue and TEU-weighted average remaining charter term of 2.3 years ➢ Reduced cost of
Slide 22: Appendix
Appendix oF GLOBAL SHIP LEASE
Slide 23: Appendix: GSL Fleet is Flexible, High-Reefer, Fuel-Efficient, and Low-Slot-Cost
Appendix: GSL Fleet is Flexible, High-Reefer, Fuel-Efficient, and Low-Slot-Cost TEU Reefer Vessel Built Yard LWT (Nom) Plugs Geared Wide Beam Eco Key Characteristics CMA CGM Thalassa 2008 Daewoo 38,577 11,040 700 (2) (1) UASC Al Khor 2015 Hanjin 31,764 9,115 1,500 (2) ✓ ✓ ◼ Post-Panamax Anthea Y 201
Slide 24: Appendix: Adjusted EBITDA and Normalized Net Income Reconciliation for 1Q2020
Appendix: Adjusted EBITDA and Normalized Net Income Reconciliation for 1Q2020 Reconciliation of Non-U.S. GAAP Financial Measures Adjusted EBITDA ADJUSTED EBITDA - UNAUDITED Adjusted EBITDA represents net income available to common shareholders before interest income and Three Three (thousands of U.S
Slide 25: Appendix: Overview of GSL Debt as at March 31, 2020
Appendix: Overview of GSL Debt as at March 31, 2020 Outstanding Balance as of Balloon Installment Collateralized Ship Interest Repayment Maturity 31 Mar 2020 ($m) (excl. cash sweep) ($m) Citi Super Senior loan $12.08 3.25%+L Combined annual amortization of $40 mm - 31-10-20 18 of GSL ships in 2020;
Slide 26: Appendix: Segment Analysis Report
Appendix: Segment Analysis Report $millions As of March 31, 2020 As of March 31, 2020 Issuer & Guarantors (i) Non - Guarantors (ii) Total Gross Debt 338.6 527.5 866.1 Debt between (i)Issuer & Guarantors and NIL NIL NIL (ii)Non-Guarantors Total Cash and Cash Equivalents (1) 56.1 41.6 97.7 For the per