Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Morgan Stanley Small Cap Executive Conference (June 2007)
30 slides from Genco Shipping & Trading's conference presentation, Jun 13, 2007
Slide 1: Genco Shipping & Trading Limited – Morgan Stanley Small Cap Executive Conference
Genco Shipping & Trading Limited Morgan Stanley Small Cap Executive Conference June 13, 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 Executive Summary Industry Highlights Company Overview Growth Strategy Conclusions 06/13/07 3
Slide 4: Executive Summary
Executive Summary
Slide 5: Summary
Summary Issuer Genco Shipping & Trading Limited Ticker / Exchange GNK / NYSE Date of Initial Public Offering July 22, 2005 Target Dividend $0.66 per share, per quarter Shares Outstanding 25.52 Million Annualized Dividend Yield (as of June 12, 2007) 7% Pro Forma Net Debt to Total Cap(1) 37% Available
Slide 6: Genco Overview
Genco Overview Owns 19 vessels acquired since December 2004 ― 7 Panamax, 7 Handymax, 5 Handysize vessels ― Combined carrying capacity of approximately 988,000 dwt Average fleet age of 9 years, compared to industry average of approximately 15 years Approximately 92% of 2007 remaining available
Slide 7: Management
Management Peter Georgiopoulos Gerry Buchanan John C. Wobensmith Chairman President Chief Financial Officer Over 20 years of 40 years of experience in 14 years of experience in experience in the shipping the shipping industry the shipping industry industry Managing director of Formerly Sen
Slide 8: Industry Highlights
Industry Highlights
Slide 9: Global Seaborne Trade – 2006(e)
Global Seaborne Trade – 2006(e) Total Seaborne Trade Dry Seaborne Trade General Other Steam Coal Drybulk Container 11% Minor Bulk 19% 16% 35% 37% 7% Coking Coal 38% 10% 27% Liquid (Oil / Gases / Grain Iron Ore Chemical) Total = 7.7 billion tons Total = 2.7 billion tons Source: Clarksons Source: Clar
Slide 10: Major Drybulk Trade Routes
Major Drybulk Trade Routes Iron Ore Coal Source: Drewry. Grains 06/13/07 10
Slide 11: Drybulk Indices
06/13/07 W W ee 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 ee W 1 k ee k W 3 W 3 ee k Drybulk Indices ee W 5 k ee W 5 k ee W 7 k e W 7 W ek 9 ee ee W k9 ee k W 11 k ee (BDI Points) k (BPI Points) W 11 ee W 13 k ee W 13 ee k W 15 k ee W 15 ee k
Slide 12: 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 13: 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 23% through April of 2007 Peak levels of port congestion during the last half of 2006 and first quarter of 2007 pushed rates up and maintaine
Slide 14: Company Overview
Company Overview
Slide 15: Fleet Employment
Fleet Employment (1) (2) Vessel Name Year Built Charterer Time Charter Rate ($) Charter Expiration Panamax Genco Beauty 1999 Cargill 31,500 April, 2009 Genco Knight 1999 SK Shipping Ltd. 37,700(3) May, 2009 Genco Vigour 1999 STX Panocean 29,000(4) March, 2009 Genco Leader 1999 A/S Klaveness 25,650(5
Slide 16: Year to Date Highlights
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 share of $0.64 Paid a $0.
Slide 17: 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 18: 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 19: 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 20: Strong Balance Sheet
Strong Balance Sheet Selected Financial Information Pro Forma 03/31/07* (Dollars in thousands) Balance Sheet Liquidity Position** Cash $43,719 Revolving Credit Facility $650,000** Debt $239,233 Shareholders’ Equity $339,325 Undrawn Facilities $443,767 Cash $43,719 Net Debt $195,514 Total Capitalizat
Slide 21: 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) 2,162 2,220 Depreciation(8) -
Slide 22: Dividend Declaration & Policy
Dividend Declaration & Policy Paid a Q1 2007 dividend of $0.66 per share on May 31st, 2007 to all Period Declared Dividend (1) shareholders of record as of May Q3 2005 $0.60 17th, 2007 Cash reserves are determined by Q4 2005 $0.60 our Board of Directors Q1 2006 $0.60 ― Fleet maintenance, renewal
Slide 23: Growth Strategy
Growth Strategy
Slide 24: Significant Opportunities in Fragmented Industry
Significant Opportunities in Fragmented Industry No single owner owns more than 5% of the vessels within each class Drybulk industry has similarities to the tanker industry in 1999 Ownership 100.0% 80.0% % of Total Fleet 60.0% Consolidation Opportunities 40.0% 20.0% 15.9% 14.3% 13.0% 0.0% Panama
Slide 25: Growth Strategy: Timing Is Everything
Growth Strategy: Timing Is Everything Opportunistic and prudent acquisition strategy ― Accretive earnings and cash flows while maintaining a disciplined approach to return Pursue Accretive on capital Acquisitions Revolver is primary driver of growth strategy ― Accretive to shareholders and reduc
Slide 26: Conclusions
Conclusions
Slide 27: Conclusions
Conclusions Strong First Quarter 2007 Substantial time charter coverage Cash dividend policy along with cash reserves intended to fund fleet replacement and future growth Continue to see attractive long-term drybulk industry fundamentals Strong balance sheet with low leverage ― $487 millio
Slide 28: Appendices
Appendices
Slide 29: 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 ($43,439) $43,719 Debt $206,233 33,000 $239,233 Net Debt** $119,075 - $195,514 Shareholders’ Equity $356,167 ($16,842) $339,325 Total Capitalization $475,242 - $534,839 * M
Slide 30: 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 $239,233 Less: Pro Forma Cash* $43,719 Pro Forma Net Debt $195,514 Plus: Pro Forma Shareholders’ Equity* $339,325 Total Pro Forma Capitalization $534,839 * March 31, 2007 pro
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