Global Ship Lease Inc New · NYSE:GSL
Global Ship Lease Inc New — Global Ship Lease — Q1 2016 Earnings Presentation
19 slides from Global Ship Lease Inc New's earnings presentation, 2016
Slide 1: First Quarter 2016 Results Presentation
First Quarter 2016 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 The financial information and data contained in this communication is unaudited and does not conform to the U.S. Securities and Exchange Commission Regulation S-X. Accordingly, such information and data may not be included in, may be adjusted in or may be presented differently in, Global
Slide 4: Global Ship Lease: Q1 2016 Stable, predictable earnings and cashflow
Global Ship Lease: Q1 2016 Stable, predictable earnings and cashflow with no spot market exposure Revenues – Reported revenue of $42.6 million for the first quarter 2016 Reported Net Income – Reported net income for common shareholders for the first quarter 2016 of $4.6 million Normalized Net
Slide 5: GSL Performance
Continue to Demonstrate Strong Results and Stability Throughout the Cycle 160 150 Timecharter Rate Index Five Year Average Market Timecharter Index 140 Market Cycle 130 120 110 100 90 80 70 60 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 ‘11 ‘11 ‘11 ‘12 ‘12 ‘12 ’12 ‘13 ’13 ‘13 ‘13 ‘14
Slide 6: Full Contract Coverage and Significant Cashflow Visibility
Full Contract Coverage and Significant Cashflow Visibility Provide Stable Platform for Growth Fully contracted fleet, with $749 million(1) contracted revenues 4.6 years(1) weighted average remaining contract coverage. No exposure to the spot market Charter Details Expiration Vessel TEU Built Shipyar
Slide 7: Strategic Vision
Strategic Vision Charter Strategy and • Maintain quality fleet with primary focus on longer-term charters to established counterparties Operational Risk • Contractual protections, comprehensive insurance, no fuel risk, limited FX risk Management • Acquisitions to be immediately cash generative • Con
Slide 8: Trade Fundamentals Remain Weak, but Supply Growth is Slowing
Trade Fundamentals Remain Weak, but Supply Growth is Slowing Demand Growth v. Capacity Growth¹ Composition of Global Containerized Trade in 2015¹ 9.0% 8.1% 8.0% 7.2% Transpacific Year-on-Year Growth 7.0% 6.5% 13% 5.4% 5.6% Far East - Europe 6.0% 5.0% 4.1%3.9% 4.4% 40% 12% 3.8% Transatlantic 4.0% 3.4
Slide 9: Spot Market Charter Rates & Asset Values Remain Under Pressure
Spot Market Charter Rates & Asset Values Remain Under Pressure Charter, Secondhand Price & Newbuilding Price Indices¹ Charter Rates for Different Size Segments² 240 Timecharter Rate Index 220 Newbuilding Price Index 200 Index (100 = Average Since Jan-2000) Secondhand Price Index 180 Average Since Ja
Slide 10: Scrapping of Mid-Size & Smaller Tonnage Accelerating
Scrapping of Mid-Size & Smaller Tonnage Accelerating Evolution of Idle Capacity¹ Scrapping Activity¹ Commentary Chartered Tonnage by Size Segment¹ 70.0% Increased idle capacity: predominantly made up of mid-size Proportion Chartered (%) 59.9% 60.0% 55.7% and smaller tonnage; mostly lessor owned¹ 4
Slide 11: Mid-Size & Smaller Ships Key to Most Tradelanes
(1) # Ships Tradelane Vessel Size (TEU) - 10,000 12,000 14,000 16,000 18,000 20,000 2,000 4,000 6,000 8,000 210 Europe-Africa 193 Europe-Latam MSI as at December 31, 2015 76 Europe-M.East/ISC 190 F.East-Africa 331 F.East-Europe 155 F.East-Latam 283 F.East-M.East/ISC 154 F.East-Oceania 53 Intra-Afric
Slide 12: Favourable Medium Term Demand-Supply Outlook for Mid-Size & Smaller Ships
Favourable Medium Term Demand-Supply Outlook for Mid-Size & Smaller Ships Evolution of the Global Fleet & Orderbook-to-Fleet Ratio (at Year-End)¹ Orderbook-to-Fleet by Segment² 20 100% 80.0% 12,000 + TEU Orderbook-to-fleet ratio peaked 70.0% 65.7% Orderbook-to-Fleet Ratio above 60% in 2007. Now osci
Slide 13: Momentum Building for Liner Consolidation & Evolution of Alliances
Momentum Building for Liner Consolidation & Evolution of Alliances Liner Fleet Composition; Consolidation Activity and (Potential) Re-Jigging of Alliances1 3.50 Owned Chartered Orderbook 3.00 Capacity (TEU mm) 2.50 Continuous red and blue lines 2.00 denote consolidation; dotted red lines denote pote
Slide 14: Q1 2016 Financials
Q1 2016 Financials oF GLOBAL SHIP LEASE
Slide 15: Consolidated Income Statement Q1 2016 and 2015 (unaudited)
Consolidated Income Statement Q1 2016 and 2015 (unaudited) $000’s Three months ended March 31, 2016 2015 Operating Revenues Time charter revenue $ 42,610 $ 37,719 Operating Expenses Vessel operating expenses 11,402 12,441 Depreciation 10,934 10,978 General and administrative 1,970 1,757 Other operat
Slide 16: Consolidated Balance Sheet at March 31, 2016 and December 31, 2015
Consolidated Balance Sheet at March 31, 2016 and December 31, 2015 (unaudited) March 31, December 31, 2016 2015 $000’s Assets Cash and cash equivalents $ 30,522 $ 53,591 Accounts receivable 926 1,621 Prepaid expenses 1,632 1,101 Other receivables 132 708 Inventory 576 610 Total current assets 33,788
Slide 17: Consolidated Cash Flow Statement Q1 2016 and 2015 (unaudited)
Consolidated Cash Flow Statement Q1 2016 and 2015 (unaudited) $000’s Three months ended March 31, 2016 2015 Cash Flows from Operating Activities Net income $ 5,323 $ 790 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Depreciation 10,934 10,978 Amortization of deferr
Slide 18: Concluding Remarks
Concluding Remarks Entire fleet chartered through at least late 2017, providing stable, long-term cash flows: – Contracted revenue of $749 million with weighted average remaining contract term of 4.6 years – No exposure to spot market until late-2017 Strategic and financial flexibility support f
Slide 19: Q&A
Q&A GLOBAL SHIP LEASE