Global Ship Lease Inc New · NYSE:GSL
Global Ship Lease Inc New — Global Ship Lease — Q1 2021 Earnings Presentation
28 slides from Global Ship Lease Inc New's earnings presentation, 2021
Slide 1: First Quarter 2021 Results Presentation
First Quarter 2021 Results Presentation PwC 1
Slide 2: 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 3: 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 4: Recent Highlights and Overview of 1Q 2021 Results
Recent Highlights and Overview of 1Q 2021 Results Industry rebound accelerating $ 73.0 million $ 44.7 million Total Revenue in 1Q 2021 Adjusted EBITDA¹ in 1Q 2021 11 charters, adding $280.9 million³ of cover Acquiring seven ships, with charters attached $ 4.2 million $ 17.8 million Net Income in 1Q
Slide 5: Big Picture: Rebound, Supportive Fundamentals, Decarbonization
Big Picture: Rebound, Supportive Fundamentals, Decarbonization Demand Growth Strengthening; Supply Growth Limited¹ Strong 2H2020, although FY2020 volumes still down by 2.0% on 2019¹ 8.0% 6.8% COVID resilience Liner operators’ capacity discipline drove strong results Year-on-Year Growth 5.8% 5.9% 6.0
Slide 6: Capturing Upside by Extending Contract Cover & Expanding Fleet
Capturing Upside by Extending Contract Cover & Expanding Fleet 2021 2022 2023 2024 Vessel TEU Built Charter Agreed Charterer 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Keta 2,207 2003 3Q20 OOCL $9,400 Julie Kumasi Marie Delmas 2,207 2,207 2,207 2002 2002 2002 3Q20 / 1Q21 3Q20 3Q20 Sea Consortiu
Slide 7: Delivering Accretive Growth, Consistent with Target Criteria
Delivering Accretive Growth, Consistent with Target Criteria Seven 6,000 TEU Post-Panamax containerships, with average age of 20 years Sweet spot: existing ships, En-bloc purchase for $116 million: vessels delivering 2Q – 3Q 2021 not newbuildings 3 – 5 year charters¹, generating annualized Adjusted
Slide 8: 1Q2021 Financials: Highlights
1Q2021 Financials: Highlights Revenue: $73.0 million, up from $70.9 million for 1Q 2020 Adjusted EBITDA¹: $44.7 million, up from $40.0 million for 1Q 2020 Net Income: $4.2 million P&L Related Normalized Net Income¹: $17.8 million, up from $10.5 million for 1Q 2020 One-off adjustments: $5.8 million c
Slide 9: Financial Statements: Balance Sheet at March 31, 2021
Financial Statements: Balance Sheet at March 31, 2021 (Unaudited) (Expressed in thousands of U.S. dollars, except share data) March 31, 2021 December 31, 2020 ASSETS CURRENT ASSETS Cash and cash equivalents $ 142,209 $ 80,757 Restricted cash 6,859 825 Accounts receivable, net 2,236 2,532 Inventories
Slide 10: Financial Statements: P&L for 1Q 2021
Financial Statements: P&L for 1Q 2021 (Unaudited) (Expressed in thousands of U.S. dollars, except share data) Three months ended March 31, 2021 2020 OPERATING REVENUES Time charter revenue (includes related party revenues of $32,195 and $37,676 for each of the three-month periods ended March 31, 202
Slide 11: Financial Statements: Cash flows for 1Q 2021
Financial Statements: Cash flows for 1Q 2021 (Unaudited) (Expressed in thousands of U.S. dollars) Three months ended March 31, 2021 2020 Cash flows from operating activities: Net income $ 5,643 $ 1,500 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and
Slide 12: Adjusted EBITDA and Operating Cash Flow Calculator (Illustrative)
Adjusted EBITDA and Operating Cash Flow Calculator (Illustrative) The table below presents our calculator for our fleet for 2021 and 2022, based on historical performance, contracted revenue, assumed expenses, CAPEX, Net Interest Expense and Debt Amortization1. It includes the acquisition of the sev
Slide 13: CAPEX Guidance
CAPEX Guidance (Expressed in millions of U.S. dollars) Revisions to the dry-docking schedule disclosed in our 20-F (for year ended December 31, 2020) ➢ Please refer to summary table below for revised guidance, updated April 28, 2021 ➢ Where possible, in order to minimize off-hire, we arrange for reg
Slide 14: Mid-Size & Smaller Ships: Flexible Assets & Backbone of Global Trade
Mid-Size & Smaller Ships: Flexible Assets & Backbone of Global Trade GSL focus High-reefer, mid-size & smaller containerships 70%+ Proportion of global containerized trade volume in non-mainlane trades² Deployment of sub-10,000 TEU ships: everywhere¹ Sub-10,000 TEU Non-mainlane trades predominantly
Slide 15: Supply-Side Trends: Idle Capacity Down, Scrapping Minimal
Supply-Side Trends: Idle Capacity Down, Scrapping Minimal Idle Fleet Peaked in 2Q2020; Approaching Full Utilization in 2021¹ idle 3.0 16.0% 1.5% Idle Fleet Ratio (Red Line) 12,000 + TEU 7,600-11,999 TEU capacity¹ Idle Capacity (TEU mm) 14.0% 2.5 5,200-7,599 TEU 3,900-5,200 TEU 12.0% Down from 11.7%
Slide 16: Supportive Fundamentals: Negligible Fleet Growth, Minimal Orderbook
Supportive Fundamentals: Negligible Fleet Growth, Minimal Orderbook Net Fleet Growth 2016 – 1Q2021¹ Minimal Orderbook for our Focus Segments¹ 5.0 Delivered Scrapped Net Growth 3.5 15.6% orderbook to fleet¹ Overall orderbook, all containerships Global Capacity on Order (TEU mm) 4.0 3.0 Global Fleet G
Slide 17: Outcome: Charter Market Keeps Getting Hotter
Outcome: Charter Market Keeps Getting Hotter Short Term (6 – 12 Months) Charter Market Rates, 2019 – 1Q2021¹ 60 253% Av. charter rate increase 55 Post-Panamax: 1Q21 v. 2Q20-low¹ 50 Charter Rate ($,000 / Day) 45 40 427% Av. charter rate increase Panamax: 1Q21 v. 2Q20-low¹ 35 9,000 TEU ECO 30 25 254%
Slide 18: Summary
Summary $984 million & 2.6 years TEU-weighted contract cover as at March 31, 2021¹ Extensive contract cover Debt service & CAPEX covered by contracted cash flows Capturing upside by extending contract cover & expanding fleet $163 million cash on balance sheet as at March 31, 2021 Strong balance shee
Slide 19: Appendix
Appendix ▪ Reconciliation of Non-GAAP Financial Measures ▪ Debt Structure ▪ Additional Market Data ▪ ESG PwC
Slide 20: Adjusted EBITDA & Normalized Net Income - Reconciliation
Adjusted EBITDA & Normalized Net Income - Reconciliation (Expressed in thousands of U.S dollars) Reconciliation of Non-U.S. GAAP Financial Measures Three Three Adjusted EBITDA - unaudited Months Months Adjusted EBITDA Ended Ended Mar 31, Mar 31, Adjusted EBITDA represents net income available to com
Slide 21: Net Debt to LTM Adjusted EBITDA/Operating Revenue/Normalized Net Income - Reconciliation
Net Debt to LTM Adjusted EBITDA/Operating Revenue/Normalized Net Income - Reconciliation (Expressed in thousands of U.S dollars, except Net Debt / LTM Adjusted EBITDA Ratio) Net Debt / Adjusted EBITDA / Operating Revenue for 12 Months to March 31, 2021 Gross debt as at March 31, 2021 768,982 Cash an
Slide 22: EPS & Adjusted EPS - Reconciliation
EPS & Adjusted EPS - Reconciliation (Expressed in thousands of U.S dollars, except share data) Adjusted EPS – Fully Diluted, Including Conversion of Series C Pref. Reconciliations of Basic, Diluted, and Adjusted EPS Three months ended Three months ended March 31, 2021 March 31, 2020 Reconciliation o
Slide 23: Pro Forma Debt Structure as at March 31, 2021
Pro Forma Debt Structure as at March 31, 2021 (Expressed in millions of U.S dollars) Outstanding Balance as of Balloon Installment Collateralized Ship Interest Repayment Maturity 31 March, 2021 ($m) (excl. cash sweep) ($m) New Hayfin Facility 21 ships $229.64 7.00%+L $6.56 million per quarter $105.0
Slide 24: Diversification of Charterers, Lenders, & Shareholder Base
Diversification of Charterers, Lenders, & Shareholder Base Evolution of Charterer Diversification: 2019 – 1Q21 Sources of Debt Capital (03/31/21) Shareholder Base² 2024 Senior 31-Dec-19 31-Dec-20 31-Mar-21 Unsecured Notes Shareholder Ownership² Proportion of Overall Charter Revenue, by Period (%) Ke
Slide 25: Evolution of Charter Rates, Asset Values, and Scrap Prices
Evolution of Charter Rates, Asset Values, and Scrap Prices Short-Term Market Charter Rates & Asset Values, 2000 – 1Q2021(¹) Charter Rates: Index (100 = Av. 2000 – 1Q21) 300 Leading Indicator Newbuild Price Index TC Rate Index Second Hand Price Index Sharp up-turn in earnings from 3Q20 250 200 150 10
Slide 26: ESG Overview
ESG Overview¹ 80% of global trade is carried by sea Shipping is a low carbon form of transportation Shipping contributes to the United Nations Sustainable Development Goals As an industry, shipping has a number of strengths. However, that is not to understate the magnitude of the challenges we need
Slide 27: Decarbonization
Decarbonization GSL is working with industry think-tanks on next generation fuel and propulsion to better understand commercial availability and economic viability Emissions by Transportation Type (1) Emissions by Containership Segment (1) Container Shipping Container shipping compares favorably to
Slide 28: Corporate Governance
Corporate Governance Our Board of Directors Conflicts Committee The Board of Directors of Global Ship Lease (GSL) is committed to its fiduciary The primary purposes of our Conflicts Committee are to review, evaluate, and approve responsibility to represent shareholder interests and oversee the manag