Global Ship Lease Inc New · NYSE:GSL
Global Ship Lease Inc New — Global Ship Lease — Q1 2014 Earnings Presentation
19 slides from Global Ship Lease Inc New's earnings presentation, 2014
Slide 1: First Quarter 2014 Results Presentation
First Quarter 2014 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: Q1 2014 Highlights: Generated Consistent Revenues and Cash Flow
Global Ship Lease: Q1 2014 Highlights: Generated Consistent Revenues and Cash Flow; Successfully Executed Transformative Note Offering Revenues – $34.0 million generated for first quarter 2014 Net income – $1.8 million for first quarter 2014, including a $1.9 million non-cash mark-to-market gain
Slide 5: Benefits of New 10.0% First Priority Secured Notes Due 2019
Benefits of New 10.0% First Priority Secured Notes Due 2019 Guarantors Each of the Company’s 17 vessel-owning subsidiaries and • Increased financial flexibility by Global Ship Lease Services eliminating restrictive maintenance Limited covenants Collateral First priority ship mortgages on • Establish
Slide 6: New Capital Structure Enhances Prospects for Value Generation
New Capital Structure Enhances Prospects for Value Generation Contrasting Key Elements of the Old Credit Facility with the New Notes Old Credit Facility New Notes Growth Not possible Possible Dividends Not possible Possible, subject to certain limitations PF Secured Debt at December 31, 2013 $387.7
Slide 7: GSL Performance
Global Ship Lease: Q1 2014 Continued to Demonstrate Strong Results and Stability Throughout the Cycle 250 Timecharter Rate Index Average Jan-2008 Through Mar-2014 Market Timecharter Index 200 Market Cycle 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 ‘08 ‘08
Slide 8: Longer Term Coverage
Stable Platform: Significant Contract Coverage & Cashflow Visibility Recent CMA CGM support for refinancing: $54 mm increase in contracted revenues $932 mm (1) contracted revenue (up from $878 mm) 7.6 years (1) weighted average remaining contract coverage (up from 7.1 years), excluding the two spot
Slide 9: Strategy Going Forward
Strategy Going Forward 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 • Selectively diversify charter portfolio to add
Slide 10: Containership Industry Backdrop
Containership Industry Backdrop Improving Outlook for Industry Fundamentals Industry Fundamentals Shape Spot Charter Market¹ Outlook for Fundamentals is Improving² Container Trade Growth Trade Growth Cellular Capacity Growth Overall Capacity Growth 20% 260 Containership Fleet Growth Containership Sp
Slide 11: Mid-Sized & Smaller Ships Provide Most Favorable Mid-Term Opportunities
Mid-Sized & Smaller Ships Provide Most Favorable Mid-Term Opportunities Composition of Global Containerized Trade, 2013¹ Orderbook Composition by Fleet Segment² Intra-Regional Non-mainlane (excl. intra- 1.8 Orderbook 76% 80% East-West Asia) 4% 1.6 Orderbook-to-Fleet Ratio 11% Orderbook as % of Fleet
Slide 12: Market Opportunity: Attractive Asset Values
Market Opportunity: Attractive Asset Values Illustrative Historical Vessel Prices (Q1 2001 – Q1 2014) (1) 100 Newbuild Contract Price Existing tonnage (1) priced close to historic lows: ~80% below 2008 peak, ~60% below 10 year historic average (2) 5Yr Price 90 15Yr Price 80 Scrap Price Vessel Resale
Slide 13: Freight Rates Remain Volatile but CMA CGM Continues to Outperform
Containership Industry Backdrop Freight Rates Remain Volatile but CMA CGM Continues to Outperform Industry Liner Company EBITDA Margins¹ Freight Rate Indices by Tradelane v. Charter Rates² 20% 160 Quarterly EBITDA Margin (%) 140 15% Index (100 = January, 2011) 120 10% 100 5% 80 60 0% Average EBITDA
Slide 14: Q1 2014 Financials
Q1 2014 Financials GLOBAL SHIP LEASE
Slide 15: Financial Results (Unaudited): Income Statement Q1 2014 and 2013
Financial Results (Unaudited): Income Statement Q1 2014 and 2013 $000’s Three months ended March 31, 2014 2013 Operating Revenues Time charter revenue $ 34,039 $ 35,209 Operating Expenses Vessel operating expenses 11,533 11,545 Depreciation 10,033 10,070 General and administrative 1,728 1,557 Other
Slide 16: Financial Results (Unaudited): Balance Sheet March 31, 2014 and December 31, 2013
Financial Results (Unaudited): Balance Sheet March 31, 2014 and December 31, 2013 March 31, December 31, 2014 2013 $000’s Assets Cash and cash equivalents $ 55,160 $ 24,536 Restricted cash 3 3 Accounts receivable 5,833 7,006 Prepaid expenses 1,837 5,337 Other receivables 208 115 Current portion of d
Slide 17: Financial Results (Unaudited): Cash Flow Statement Q1 2014 and 2013
Financial Results (Unaudited): Cash Flow Statement Q1 2014 and 2013 Three months ended March 31, $000’s 2014 2013 Cash Flows from Operating Activities Net income $ 1,843 $ 7,234 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Depreciation 10,033 10,070 Amortization o
Slide 18: Q1 2014 Concluding Remarks
Global Ship Lease: Q1 2014 Concluding Remarks Fleet remains fully chartered through late 2017, aside from the two spot vessels – In active discussions for rechartering of Ville d’Aquarius; expect redelivery of Ville d’Orion in May – No further expirations until late 2017 – Contracted revenue of $9
Slide 19: Q&A
Q&A GLOBAL SHIP LEASE