Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Bear Stearns Global Transportation Conference 2007
20 slides from Genco Shipping & Trading's conference presentation, May 9, 2007
Slide 1: Genco Shipping & Trading Limited
Genco Shipping & Trading Limited Bear Stearns Global Transportation Conference May 9, 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 Company Overview Industry Highlights 05/09/07 3
Slide 4: Company Overview
Company Overview
Slide 5: Summary
Summary Issuer Genco Shipping & Trading Limited Ticker / Exchange GNK / NYSE Date of Offering July 22, 2005 Target Dividend $0.66 per share, per quarter Shares Outstanding 25.52 Million Annualized Dividend Yield (as of May 7, 2007) 7% Pro Forma Net Debt to Total Cap(1) 37% Available Liquidity for Ac
Slide 6: Genco Overview
Genco Overview Acquired 19 vessels since December 2004 ― 7 Panamax, 7 Handymax, 5 Handysize vessels ― Combined carrying capacity of approximately 988,000 dwt Average fleet age of 9.1 years, compared to industry average of approximately 15 years Approximately 92% of 2007 remaining available day
Slide 7: Key Investment Highlights
Key Investment Highlights Modern high-quality fleet US based management team with strong track record Dividend policy supported by Strong growth attractive time charters with Cost efficient operations with dividends to low breakeven rate shareholders Strong balance sheet and attractive revolving cre
Slide 8: First Quarter 2007 and Year to Date Highlights
First Quarter 2007 and 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 $16.3 million for the first quarter of ’07 excluding the gain on the sale of the Genco Glory ― Basic and diluted earnings per shar
Slide 9: Fleet Employment
Fleet Employment Vessel Name Year Built Charterer Time Charter Rate ($) (1) Charter Expiration(2) Panamax Genco Beauty 1999 Cargill 29,000 / 31,500 June, 2007 / 23 to 26 Months from Delivery (3) Genco Knight 1999 BHP/SK Shipping Ltd. 29,000 / 37,700 May, 2007 / 23 to 25 Months from Delivery (4) Genc
Slide 10: 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 11: Attractive Credit Facility To Fund Growth Strategy
Attractive Credit Facility To Fund Growth Strategy Drawdown based on 65% of Amount $650 million(1) collateral base Availability $444 million (1) No bank approval required for target acquisitions Original Term 10 Years Entered into a ten-year interest Non-Amortizing rate swap for $106 million o
Slide 12: Dividend Declaration & Policy
Dividend Declaration & Policy Declared a Q1 2007 dividend of $0.66 per share payable on or Period Declared Dividend (1) about May 31st, 2007 to all Q3 2005 $0.60 shareholders of record as of May 17th, 2007 Q4 2005 $0.60 Cash reserves are determined by our Board of Directors Q1 2006 $0.60 ― Fleet
Slide 13: Industry Highlights
Industry Highlights
Slide 14: 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 24% for the first quarter of 2007 Peak levels of port congestion during the last half of 2006 and first quarter of 2007 pushed rates up and h
Slide 15: Drybulk Demand Fundamentals Remain Strong
Drybulk Demand Fundamentals Remain Strong Imports by Country – Major Bulks (5) (million tons, %) Chinese GDP grew by 11.1% YOY for Q1 2007, 0.7% higher China EU Japan SK TW USA than the same period last year(1) INDIA Middle East other Indian GDP growth expected at other 16% 9.2% for 2006, up fro
Slide 16: 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 17: 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 18: Appendices
Appendices
Slide 19: 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 20: 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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