Global Ship Lease Inc New · NYSE:GSL
Global Ship Lease Inc New — Global Ship Lease — Q2 2020 Earnings Presentation
26 slides from Global Ship Lease Inc New's earnings presentation, Aug 6, 2020
Slide 1: Second Quarter 2020 Results Presentation
Second 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 Strong platform to benefit from eventual market r
Slide 5: Contract Cover Provides Strong Base and Insulates Against Impact of COVID-19
Contract Cover Provides Strong Base and Insulates Against Impact of COVID-19 Contracted revenue of $659 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 /
Slide 6: GSL's High-Reefer Ships are Well-Positioned to Serve Growing Market Segment
GSL’s High-Reefer Ships are Well-Positioned to Serve Growing Market Segment 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
Slide 7: 2Q2020 Results and QTD Highlights
2Q2020 Results and QTD Highlights ◼ Continued to generate strong, predictable cashflow from contracted charter cover ➢ Operating revenue: $71.4 million, up from $63.1 million in 2Q2019 ➢ Adjusted EBITDA¹: $41.8 million, up from $38.8 million in 2Q2019 ➢ Normalized net income: $13.5 million (adjusted
Slide 8: Industry Update
Industry Update oF GLOBAL SHIP LEASE
Slide 9: Big-Picture: Challenging 1H2020; Shape & Timing of Recovery Remains Hard to Call
Big-Picture: Challenging 1H2020; Shape & Timing of Recovery Remains Hard to Call GDP & World Container Trade 2000 – 2021F¹ Containerized Volume Growth, by Tradelane¹ 2017 2018 2019(E) 2020(F) 2021(F) ? 250.0 20.0% 15.0% 11.9% 11.1% 9.9% 10.0% 8.9% 8.8% Year-on-Year Growth 15.1% 15.0% 200.0 4.3% 4.0%
Slide 10: Freight Rates & Charter Rates Under Pressure in 1H2020; Now Firming Again
Freight Rates & Charter Rates Under Pressure in 1H2020; Now Firming Again Freight Rate Indices for China Exports - 2019 & YTD2020¹ Spot Market Charter Rates - 2019 & YTD2020¹ Chinese New Year & commencement of COVID-19 lock-down COVID-19 lock-downs expand from China 1,200 45,000 to other major econo
Slide 11: Charter Rates & Asset Values in Historic Context
Charter Rates & Asset Values in Historic Context Charter Rate & Asset Value Indices 2000 – 1H2020¹ 300 Newbuild Price Index TC Rate Index 250 Second Hand Price Index Average Since Jan-2000 Index ( 100 = average since Jan-2000) 200 Historic Average 2000 – 1H2020 150 100 50 Global Financial Crisis COV
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% ◼ Non-main
Slide 13: Near-Term Outlook Still Uncertain, but Supply-Side Supportive of Subsequent Recovery
Near-Term Outlook Still Uncertain, but Supply-Side Supportive of Subsequent Recovery Idle Fleet Peaked in June; Evolution Starting of Idle to Come Down¹ Capacity¹ Ship Recycling Market Now Open; Activity Accelerating¹ Scrapping-to-Fleet Ratio (Red Line) 2.7 12,000 + TEU 16.0% 700 5,100+ TEU 3.5% 7,6
Slide 14: Q2 2020 Financials
Q2 2020 Financials oF GLOBAL SHIP LEASE
Slide 15: Consolidated Balance Sheet as at June 30, 2020 (unaudited)
Consolidated Balance Sheet as at June 30, 2020 (unaudited) (Expressed in thousands of U.S dollars except share data) June 30, 2020 December 31, 2019 ASSETS CURRENT ASSETS Cash and cash equivalents $ 73,721 $ 138,024 Restricted cash 9,750 3,909 Accounts receivable, net 3,390 2,350 Inventories 6,071 5
Slide 16: Consolidated Statement of Operations 2Q2020 (unaudited)
Consolidated Statement of Operations 2Q2020 (unaudited) (Expressed in thousands of U.S dollars except share data) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 OPERATING REVENUES Time charter revenue (includes related party revenues of $36,848 and $37,845 for each of the
Slide 17: Consolidated Cash Flow Statement 2Q2020 (unaudited)
Consolidated Cash Flow Statement 2Q2020 (unaudited) (Expressed in thousands of U.S dollars) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Cash flows from operating activities: Net income $ 13,516 $ 9,134 $ 15,016 $ 19,523 Adjustments to reconcile net income to net cash pr
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 August 04, 2020 ➢ Where possible, in order to minimize off-hire, we arrange for regulatory dry-dockings and upgrade work to be concurrent ◼ Upgrade
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 ➢ $659 million of contracted revenue and TEU-weighted average remaining charter term of 2.3 years ➢ Reduced cost of
Slide 22: Appendix
Appendix oF GLOBAL SHIP LEASE
Slide 23: Appendix: GSL Fleet is Flexible, High-Reefer, Fuel-Efficient, and Low-Slot-Cost
Appendix: GSL Fleet is Flexible, High-Reefer, Fuel-Efficient, and Low-Slot-Cost TEU Reefer Vessel Built Yard LWT (Nom) Plugs Geared Wide Beam Eco Key Characteristics CMA CGM Thalassa 2008 Daewoo 38,577 11,040 700 (2) (1) UASC Al Khor 2015 Hanjin 31,764 9,115 1,500 (2) ✓ ✓ ◼ Post-Panamax Anthea Y 201
Slide 24: Appendix: Adjusted EBITDA and Normalized Net Income Reconciliation for 2Q2020
Appendix: Adjusted EBITDA and Normalized Net Income Reconciliation for 2Q2020 Reconciliation of Non-U.S. GAAP Financial Measures Adjusted EBITDA ADJUSTED EBITDA - UNAUDITED Adjusted EBITDA represents net income available to common shareholders before interest income and Three Three (thousands of U.S
Slide 25: Appendix: Overview of GSL Debt as at June 30, 2020
Appendix: Overview of GSL Debt as at June 30, 2020 Outstanding Balance as Balloon Installment Collateralized Ship Interest Repayment Maturity of 30 Jun 2020 ($m) (excl. cash sweep) ($m) Citi Super Senior loan $4.68 3.25%+L Combined annual amortization of $40 mm - 31-10-20 18 of GSL ships in 2020; $3
Slide 26: Appendix: Segment Analysis Report
Appendix: Segment Analysis Report $millions As of June 30, 2020 As of June 30, 2020 Issuer & Guarantors (i) Non - Guarantors (ii) Total Gross Debt 330.6 514.4 845.0 Debt between (i)Issuer & Guarantors and NIL NIL NIL (ii)Non-Guarantors Total Cash and Cash Equivalents (1) 50.9 38.8 89.7 For the perio