Diamond S Shipping Inc. (NYSE: DSSI) (“Diamond S”, or the
“Company”), one of the largest publicly listed owners and operators
of crude oil and product tankers, today announced results for the
fourth quarter of 2020.
Highlights for the Fourth Quarter and Recent Events
- Reported net loss attributable to Diamond S of $57.8 million,
or net loss of $1.45 basic and diluted earnings per share, and
Adjusted EBITDA (see Non-GAAP Measures section below) of $8.0
million. The reported net loss includes a loss on vessel sales,
related to the sale of the Aias and Amoureux, and a cancelled
scrubber installation, which, in aggregate, was $29.6 million.
Excluding the loss on vessel sales and the cost of the cancelled
scrubber project, the net loss was $28.2 million, or $0.71 per
share.
- Agreed to sell two Suezmax vessels, the Aias and the Amoureux,
which were delivered to buyers in January and February 2021
respectively. The sale of the vessels generated approximately $20
million in net proceeds before settlement of working capital.
- Net debt at December 31, 2020 was $594.4 million, implying a
net debt to asset value leverage ratio of approximately 44% based
on broker valuations as of December 2020. At quarter end, total
free liquidity available to the Company above bank minimum cash
requirements was $108.1 million.
Craig H. Stevenson Jr., President and CEO of Diamond S,
commented: “Although near-term market conditions will likely remain
challenging, the positive long-term market dynamic remains
unchanged. In fact, the permanent closures of certain refineries
will result in increased tanker demand for product tankers once
conditions normalize. Overall tanker demand is expected to
gradually increase over the course of 2021 and eventually return to
pre-pandemic levels next year as product demand recovers and
inventory levels normalize. Diamond S will be well-positioned to
create value for our shareholders as the recovery unfolds. Our
recent sale of two Suezmax vessels highlights the disconnect
between the tangible market value of our fleet and our current
market capitalization. These sales also add to our strong liquidity
position, reduce our interest expense and are consistent with our
historical approach to managing our balance sheet
conservatively.”
Fourth Quarter 2020 Results
Reported net loss attributable to Diamond S for the fourth
quarter of 2020 was $57.8 million, or net loss of $1.45 basic and
diluted earnings per share. Excluding the loss of vessel sales and
cancelled scrubber project cost of $29.6 million, the net loss was
$28.2 million or $0.71 per share compared to a net income of $26.1
million, or $0.65 per basic and diluted share, for the fourth
quarter of 2019. The decrease in net income for the fourth quarter
of 2020 compared to the fourth quarter of 2019 is primarily related
to weaker tanker market conditions driven by the global
pandemic.
The Company groups its business primarily by commodity
transported and segments its fleet into a 16-vessel crude oil
transportation fleet (the “Crude Fleet”) and a 50-vessel refined
petroleum product transportation fleet (the “Product Fleet”). The
Crude Fleet consists of 15 Suezmax vessels and one Aframax vessel.
In December 2020, the Company agreed to sell two Suezmax vessels
that were delivered in Q1 2021. The Product Fleet consists of 44
medium range (“MR2”) vessels and 6 Handysize (“MR1”) vessels.
Net revenues for the Company, which represents voyage revenues
less voyage expenses, were $58.4 million for the fourth quarter of
2020 compared to $123.1 million for the fourth quarter of 2019. Net
revenues from the Crude Fleet were $15.3 million in the fourth
quarter of 2020 compared to $55.6 million for the fourth quarter of
2019. The decrease in net revenues for the Crude Fleet were
primarily due to the continued impact of the pandemic on global oil
demand. Net revenues from the Product Fleet were $43.1 million in
the fourth quarter of 2020 compared to $67.5 million for the fourth
quarter of 2019. The decrease in net revenues in the Product Fleet
were driven by the same factors as the Crude Fleet.
Vessel expenses were $43.2 million for the fourth quarter of
2020 compared to $44.7 million for the fourth quarter of 2019.
Vessel expenses, which include crew costs, insurance, repairs and
maintenance, lubricants and spare parts, technical management fees
and other miscellaneous expenses, decreased by $1.5 million
primarily due to timing of crew reliefs and logistics for delivery
of services and materials.
Depreciation and amortization expense was $29.2 million in the
fourth quarter of 2020 compared to $28.7 million for the fourth
quarter of 2019.
General and administrative expenses were $6.7 million in the
fourth quarter of 2020 compared to $8.3 million for the fourth
quarter of 2019. The decrease of $1.6 million is attributable to
the strategic change in commercial managers in the Product Fleet,
which transitioned from an in-house MR desk of salaried employees
to external managers in the Norient Product Pool, a decline in
travel expenses due to the pandemic and a decline in legal and
accounting professional fees related to regulatory filings.
Interest expense was $6.6 million in the fourth quarter of 2020
compared to $11.0 million for the fourth quarter of 2019. Interest
expense decreased in the fourth quarter of 2020 due to a lower
average debt balance as a result of debt repayments and a decrease
in the effective interest rate. Total gross debt outstanding as of
December 31, 2020 was $714.9 million, or 20% lower compared to
December 31, 2019.
Other income, which consists primarily of interest income, was
less than $0.1 million in the fourth quarter of 2020, compared to
$0.3 million for the fourth quarter of 2019.
Liquidity
As of December 31, 2020, the Company had $104.2 million in cash
and restricted cash and $60.0 million available under its revolving
credit facility. Available liquidity as of December 31, 2020 was
$108.1 million, net of $56.1 million in restricted cash and minimum
cash required by debt covenants. Following the sales of the Aias
and Amoureux, revolving credit capacity has decreased by $7 million
under the provisions of our debt documents.
Outlook
We expect the tanker market to remain under pressure for the
remainder of the first half of 2021. Demand for crude oil and
refined products, while recovering from trough levels in Q2 2020,
is expected to average about 96 million barrels per day, or 4
million barrels per day lower than pre-pandemic levels in 2021,
according to OPEC. In the short term, however, tanker supply
appears to be higher than current demand levels as improvements in
consumption are being offset by draws in inventory.
We believe in the longer-term fundamentals of the tanker
industry. Tanker supply remains balanced based on pre-pandemic
demand levels, and the number of vessels on order nearly matches
the number of vessels that might be expected to be scrapped, based
on the average useful life of a vessel. We expect conditions to
normalize and then gradually improve over the next 12 to 18
months.
As of March 5, 2021, approximately 81% of Crude Fleet revenue
days operating in the spot market in the first quarter have been
fixed at an average rate of approximately $9,200 per day. In the
Product Fleet, 83% of revenue days operating in the spot market
have been fixed at an average rate of approximately $8,800 per day
in the first quarter of 2021. The Product Fleet includes a weighted
average blend of MR2 vessels, fixed on 85% of revenue days at an
average rate of $9,100 per day, and MR1 vessels, fixed on 72% of
first quarter revenue days at an average rate of $6,700 per
day.
We continue to monitor the effects of the COVID-19 virus on our
business. The shipping industry is not only affected by the reduced
economic activity caused by the global pandemic, but our direct
operations face travel restrictions and health protocols that
differ across every port that we are called to perform our services
or to maintain the condition of our vessels. Our crews stand at the
forefront of these challenges with the added health procedures to
get on board and extending their contracted time aboard the vessel
to ensure safe relief from the next crew. While the Company has
faced increased costs in order to support the safe transition of
our crews and the logistics for delivery of services and materials
to vessels, we remain dedicated to ensure our crews are healthy and
safe while operating our vessels and transitioning to and from our
vessels.
Conference Call
The Company will hold a conference call on March 12, 2021 at
8:00 a.m. Eastern Time to discuss its results for the fourth
quarter of 2020.
To access the call, participants should dial +1 866 211-4137 for
domestic callers and +1 647 689-6723 for international callers.
Participants are encouraged to dial in ten minutes prior to the
call. Please enter passcode 7955988.
A live webcast of the conference call will be available from the
Company’s website at www.diamondsshipping.com.
An audio replay of the conference call will be available
starting at 11 a.m. ET on Friday March 12, 2021 through Friday,
March 19, 2021 by dialing in +1 800 585-8367 or +1 416 621-4642 and
entering the passcode 7955988.
About Diamond S Shipping Inc.
Diamond S Shipping Inc. (NYSE:
DSSI) owns and operates 64 vessels on the water, including 13
Suezmax vessels, one Aframax and 50 medium-range (MR) product
tankers. Diamond S is one of the largest energy shipping companies
providing seaborne transportation of crude oil, refined petroleum
and other petroleum products. The Company is headquartered in
Greenwich, CT. More information about Diamond S can be found at
www.diamondsshipping.com.
Disclosure Regarding Forward-Looking Statements
Matters discussed in this press release may constitute
forward-looking statements including, but not limited to,
statements concerning plans, objectives, goals, strategies, future
events or performance, and underlying assumptions and other
statements, which are other than statements of historical facts.
The forward-looking statements herein are based upon various
assumptions, many of which are based, in turn, upon further
assumptions, including, without limitation, management’s
examination of historical operating trends, data contained in the
Company’s records and other data available from third parties.
Although management believes that these assumptions were reasonable
when made, because these assumptions are inherently subject to
significant uncertainties and contingencies which are difficult or
impossible to predict and are beyond the Company’s control, there
can be no assurance that the Company will achieve or accomplish
these expectations, beliefs or projections. Such statements reflect
the Company’s current views with respect to future events and are
subject to certain risks, uncertainties and assumptions. Should one
or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary
materially from those described herein as anticipated, believed,
estimated, expected or intended. The Company is making investors
aware that such forward-looking statements, because they relate to
future events, are by their very nature subject to many important
factors that could cause actual results to differ materially from
those contemplated. Some of the factors that could cause our actual
results or conditions to differ materially include, but are not
limited to, unforeseen liabilities; future capital expenditures,
revenues, expenses, earnings, synergies, economic performance,
indebtedness, financial condition, losses, future prospects,
business and management strategies for the management, expansion
and growth of the Company’s operations; risks relating to the
integration of assets or operations of entities that it has or may
in the future acquire and the possibility that the anticipated
synergies and other benefits of such acquisitions may not be
realized within expected timeframes or at all; the failure of
counterparties to fully perform their contracts with the Company;
the strength of world economies and currencies; the duration and
impact of the COVID-19 (coronavirus) outbreak; general market
conditions, including fluctuations in charter rates and vessel
values; changes in demand for tanker vessel capacity; changes in
the Company’s operating expenses, including bunker prices;
drydocking and insurance costs; the market for the Company’s
vessels; availability of financing and refinancing; charter
counterparty performance; ability to obtain financing and comply
with covenants in such financing arrangements; changes in
governmental rules and regulations or actions taken by regulatory
authorities; potential liability from pending or future litigation;
general domestic and international political conditions; potential
disruption of shipping routes due to accidents or political events;
vessels breakdowns and instances of off-hires; and other factors.
Please see the Company's filings with the SEC for a more complete
discussion of certain of these and other risks and uncertainties.
The Company undertakes no obligation, and specifically declines any
obligation, except as required by law, to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
DIAMOND S SHIPPING INC. AND
SUBSIDIARIES
Condensed Consolidated Balance
Sheets
as of December 31, 2020 and
December 31, 2019
(In Thousands, except for
share and per share data)
(Unaudited)
December 31,
2020
December 31,
2019
Assets
Current assets:
Cash and cash equivalents
$
98,059
$
83,609
Due from charterers – Net of provision for
doubtful accounts of $1,577 and $1,415, respectively
39,141
80,691
Inventories
17,457
32,071
Vessels held for sale
45,351
—
Prepaid expenses and other current
assets
7,737
13,179
Restricted cash
6,140
—
Total current assets
213,885
209,550
Noncurrent assets:
Vessels – Net of accumulated depreciation
of $650,259 and $553,483, respectively
1,702,749
1,865,738
Other property – Net of accumulated
depreciation of $886 and $584, respectively
359
642
Deferred drydocking costs – Net of
accumulated amortization of $27,343 and $17,975, respectively
32,391
37,256
Advances to Norient pool
8,001
—
Restricted cash
—
5,610
Time charter contracts acquired – Net of
accumulated amortization of $4,686 and $2,296, respectively
2,214
5,004
Other noncurrent assets
2,244
4,582
Total noncurrent assets
1,747,958
1,918,832
Total
$
1,961,843
$
2,128,382
Liabilities and Equity
Current liabilities:
Current portion of long-term debt
$
196,325
$
134,389
Accounts payable and accrued expenses
25,817
44,062
Deferred charter hire revenue
3,051
1,934
Derivative liabilities
580
—
Total current liabilities
225,773
180,385
Long-term debt – Net of deferred financing
costs of $12,531 and $15,866, respectively
506,065
744,055
Derivative liabilities
569
—
Total liabilities
732,407
924,440
Equity:
Common stock, par value $0.001;
100,000,000 shares authorized; issued and outstanding 39,968,323
and 39,890,699 shares at December 31, 2020 and 2019,
respectively
40
40
Treasury stock – at cost; 137,289 shares
at December 31, 2020
(1,418
)
—
Additional paid-in capital
1,241,822
1,237,658
Accumulated other comprehensive loss
(1,149
)
—
Accumulated deficit
(45,250
)
(68,567
)
Total Diamond S Shipping Inc.
equity
1,194,045
1,169,131
Noncontrolling interests
35,391
34,811
Total equity
1,229,436
1,203,942
Total
$
1,961,843
$
2,128,382
DIAMOND S SHIPPING INC. AND
SUBSIDIARIES
Condensed Consolidated
Statements of Operations
for the Three and Twelve
Months Ended December 31, 2020 and 2019
(In Thousands, except for
share and per share data)
(Unaudited)
For the Three Months Ended
December 31,
For the Twelve Months Ended
December 31,
2020
2019
2020
2019
Revenue:
Spot revenue
$
46,214
$
162,762
$
465,383
$
511,573
Time charter revenue
16,101
23,545
79,397
68,211
Pool revenue
27,720
—
51,130
—
Total revenue
90,035
186,307
595,910
579,784
Operating expenses:
Voyage expenses
31,655
63,234
188,581
230,675
Vessel expenses
43,161
44,686
171,193
153,662
Depreciation and amortization expense
29,185
28,741
115,783
108,703
Loss on sale of vessels and cancelled
projects
29,551
—
29,551
18,344
General and administrative expenses
6,711
7,683
30,005
26,794
Other corporate expenses
—
594
—
2,657
Total operating expenses
140,263
144,938
535,113
540,835
Operating income
(50,228
)
41,369
60,797
38,949
Other (expense) income:
Interest expense
(6,636
)
(10,959
)
(34,742
)
(46,772
)
Loss on extinguishment of debt
(3,978
)
—
(3,978
)
Other income
2
326
341
1,719
Total other expense – Net.
(6,634
)
(14,611
)
(34,401
)
(49,031
)
Net (loss) income
(56,862
)
26,758
26,396
(10,082
)
Less: Net income (loss) attributable to
noncontrolling interest (1)
913
640
3,079
(776
)
Net (loss) income attributable to
Diamond S Shipping Inc.
$
(57,775
)
$
26,118
$
23,317
$
(9,306
)
Net (loss) earnings per share – basic
$
(1.45
)
$
0.65
$
0.58
$
(0.25
)
Net (loss) earnings per share –
diluted
$
(1.45
)
$
0.65
$
0.58
$
(0.25
)
Weighted average common shares outstanding
– basic
39,945,070
39,890,699
39,896,339
36,857,615
Weighted average common shares outstanding
– diluted
39,945,070
40,143,591
40,123,051
36,857,615
(1)
The Company is a 51% owner in NT Suez
Holdco LLC (“NT Suez”), a joint venture that owns two Suezmax
vessels. The Company also performs commercial, technical and
administrative services for this joint venture.
DIAMOND S SHIPPING INC. AND
SUBSIDIARIES
Condensed Consolidated
Statements of Cash Flows
for the Twelve Months Ended
December 31, 2020 and 2019
(In Thousands)
(Unaudited)
For the Twelve Months Ended
December 31,
2020
2019
Cash flows from Operating
Activities:
Net income (loss)
$
26,396
$
(10,082
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization expense
115,783
108,703
Loss on sale of vessels and cancelled
projects.
29,551
18,344
Amortization of deferred financing
costs
3,558
4,135
Amortization of time charter hire
contracts acquired
2,790
2,389
Loss on extinguishment of debt
—
3,978
Amortization of the realized gain from
recouponing swaps
—
(5,917
)
Stock-based compensation expense
4,931
3,521
Changes in assets and liabilities
35,564
(44,407
)
Payments for drydocking
(5,543
)
(17,314
)
Net cash provided by operating
activities
213,030
63,350
Cash flows from Investing
Activities:
Acquisition costs, net of cash acquired of
$16,568
—
(292,683
)
Transaction costs
—
(19,084
)
Proceeds from sale of vessels
—
31,800
Payments for vessel additions and other
property
(13,333
)
(14,563
)
Net cash used in investing
activities
(13,333
)
(294,530
)
Cash flows from Financing
Activities:
Borrowings on long-term debt
—
815,000
Principal payments on long-term debt
(134,389
)
(101,452
)
Borrowings on revolving credit
facilities
—
61,000
Payments to retire credit facilities
—
(500,603
)
Repayments on revolving credit
facilities
(45,000
)
(26,323
)
Shares repurchased
(1,418
)
—
Proceeds from partners’ contributions in
subsidiaries
—
980
NT Suez Holdco LLC distribution
(2,499
)
—
Cash paid to net settle employee
withholding taxes on equity awards
(767
)
—
Payments for deferred financing costs
(644
)
(16,361
)
Net cash (used in) provided by
financing activities
(184,717
)
232,241
Net increase (decrease) in cash, cash
equivalents and restricted cash
14,980
1,061
Cash, cash equivalents and restricted
cash – Beginning of period
89,219
88,158
Cash, cash equivalents and restricted
cash – End of period
$
104,199
$
89,219
Supplemental disclosures:
Cash paid for interest
$
31,984
$
45,426
Common stock issued to CPLP
$
—
$
236,848
Unpaid vessel additions in Accounts
payable and accrued expenses at the end of the period
$
183
$
3,270
DIAMOND S SHIPPING INC. AND
SUBSIDIARIES
Crude & Product Operating
Data
(Unaudited)
For the Three Months
Ended
December 31,
For the Twelve Months
Ended
December 31,
2020
2019
2020
2019
Crude
Fleet
Product
Fleet(A)
Crude
Fleet
Product
Fleet(A)
Crude
Fleet
Product
Fleet(A)
Crude
Fleet
Product
Fleet(A)
Time Charter TCE per day(1)
$26,364
$13,850
$26,335
$14,153
$26,298
$14,279
$26,242
$14,347
Spot TCE per day(1),(2)
6,716
9,241
43,703
15,677
29,128
13,578
24,339
13,860
Total TCE per day(1),(2)
$10,374
$9,812
$40,443
$15,322
$28,580
$13,704
$24,517
$13,969
Vessel operating expenses per day(3)
$7,543
$6,993
$7,829
$7,092
$7,569
$6,815
$7,316
$6,632
Revenue days(4)
1,470
4,545
1,471
4,534
5,645
18,021
5,324
16,378
Operating days(4)
1,472
4,600
1,472
4,600
5,856
18,300
5,496
16,957
(A) Product Fleet Operating Data
For the Three Months
Ended
December 31,
For the Twelve Months
Ended
December 31,
2020
2019
2020
2019
MR
Fleet
Handy
Fleet
MR
Fleet
Handy
Fleet
MR
Fleet
Handy
Fleet
MR
Fleet
Handy
Fleet
Time Charter TCE per day(1)
$13,761
$14,325
$14,738
$12,491
$14,464
$13,291
$14,946
$12,317
Spot TCE per day(1),(2)
9,849
4,570
15,499
17,775
14,073
9,703
13,903
13,230
Total TCE per day(1),(2)
$10,313
$6,154
$15,350
$15,116
$14,140
$10,542
$14,103
$12,768
Vessel operating expenses per day(3)
$6,905
$7,636
$7,186
$7,538
$6,773
$7,125
$6,682
$7,282
Revenue days(4)
3,997
548
3,987
547
15,833
2,188
14,736
1,642
Operating days(4)
4,048
552
4,048
552
16,104
2,196
15,283
1,674
(1)
Time charter equivalent (“TCE”) revenue
represents voyage revenues, which commence at the time a vessel
departs its last discharge port and end at the time the discharge
of cargo at the next discharge port is complete, less voyage
expenses incurred over such time. TCE rates are a non-GAAP measure,
generally used in the shipping industry, used to compare revenue
generated from voyage charters to revenue generated from time
charters. TCE rates assist the Company’s management in making
decisions regarding the deployment and use of its vessels and in
evaluating the financial performance of vessels under commercial
management. See Non-GAAP Measures below.
(2)
Revenues are derived on a
discharge-to-discharge basis less voyage expenses which primarily
consist of fuel costs and port charges incurred over the same
period. Voyage revenues, as presented in the income statement, are
reported under a load-to-discharge basis under U.S. GAAP. A
reconciliation is provided in the Non-GAAP Measures section of the
press release.
(3)
The vessel operating expenses primarily
consist of crew wages and associated costs, insurance premiums,
lubricants and spare parts, technical management fees and repair
and maintenance costs and excludes nonrecurring items.
(4)
Operating days include the calendar days
in the period of owned vessels. Revenue days represent operating
days less technical off-hire and drydocking.
Non-GAAP Measures
To supplement the Company’s financial information presented in
accordance with accounting principles generally accepted in the
U.S. (“GAAP”), management uses certain “non-GAAP financial
measures” as such term is defined in Regulation G promulgated by
the Securities and Exchange Commission (the “SEC”). Generally, a
non-GAAP financial measure is a numerical measure of a company’s
operating performance, financial position or cash flows that
excludes or includes amounts that are included in, or excluded
from, the most directly comparable measure calculated and presented
in accordance with GAAP. Management believes the presentation of
these measures provides investors with greater transparency and
supplemental data relating to the Company’s financial condition and
results of operations, and therefore a more complete understanding
of factors affecting its business than GAAP measures alone.
TCE revenue, TCE per day, earnings before interest, taxes,
depreciation and amortization (“EBITDA”), and EBITDA adjusted for
the impact of certain items that we do not consider indicative of
our ongoing operating performance (“Adjusted EBITDA”) are non-GAAP
financial measures that are presented in this press release and
that the Company believes provide investors with a means of
evaluating and understanding how the Company’s management evaluates
the Company’s operating performance. These non-GAAP financial
measures should not be considered in isolation from, as substitutes
for, nor superior to financial measures prepared in accordance with
GAAP. Please see below for reconciliations of TCE revenue, TCE per
day, EBITDA and Adjusted EBITDA.
Reconciliation of Voyage Revenue to TCE per Day
For the Three Months Ended
December 31,
For the Twelve Months Ended
December 31,
2020
2019
2020
2019
(in thousands of U.S. dollars, except
fleet data)
Crude
Fleet
Product
Fleet
Crude
Fleet
Product
Fleet
Crude
Fleet
Product
Fleet
Crude
Fleet
Product
Fleet
Voyage revenue
$32,768
$57,267
$79,684
$106,623
$235,563
$360,347
$212,788
$366,996
Voyage expense
(17,437
)
(14,218
)
(24,055
)
(39,179
)
(73,337
)
(115,244
)
(88,438
)
(142,237
)
Amortization of time charter contracts
acquired
581
14
581
176
2,324
466
1,762
627
Off-hire bunkers in voyage expenses
10
42
6
262
503
376
625
1,539
Commercial management pool fees
-
1,344
-
-
-
2,377
-
-
Load-to-discharge/Discharge-to-discharge
(676
)
150
3,265
1,514
(3,730
)
(1,359
)
3,800
1,809
Revenue from sold vessels
-
(5
)
-
77
-
(15
)
-
50
TCE Revenue
$15,246
$44,594
$59,481
$69,473
$161,323
$246,948
$130,537
$228,784
Operating days
1,472
4,600
1,472
4,600
5,856
18,300
5,496
16,957
Off-hire/Dry Docking days
2
55
1
66
211
279
172
579
Revenue days
1,470
4,545
1,471
4,534
5,645
18,021
5,324
16,378
TCE per day
$10,374
$9,812
$40,443
$15,322
$28,580
$13,704
$24,517
$13,969
Reconciliation of Net Income/(Loss) to EBITDA and Adjusted
EBITDA
EBITDA represents net income (loss) before interest expense,
income taxes and depreciation and amortization expense. Adjusted
EBITDA consists of EBITDA adjusted for the impact of certain items
that we do not consider indicative of our ongoing operating
performance. EBITDA and Adjusted EBITDA are presented to provide
investors with meaningful additional information that management
uses to monitor ongoing operating results and evaluate trends over
comparative periods. EBITDA and Adjusted EBITDA do not represent,
and should not be considered a substitute for, net income (loss) or
cash flows from operations determined in accordance with GAAP.
EBITDA and Adjusted EBITDA have limitations as analytical tools,
and should not be considered in isolation, or as a substitute for
analysis of our results reported under GAAP. Some limitations
are:
- EBITDA and Adjusted EBITDA do not reflect our cash
expenditures, or future requirements for capital expenditures or
contractual commitments;
- EBITDA and Adjusted EBITDA do not reflect changes in, or cash
requirements for, our working capital needs; and
- EBITDA and Adjusted EBITDA do not reflect the significant
interest expense, or the cash requirements necessary to service
interest or principal payments, on our debt.
While EBITDA and Adjusted EBITDA are frequently used by
companies as a measure of operating results and performance,
neither of those items as prepared by the Company is necessarily
comparable to other similarly titled captions of other companies
due to differences in methods of calculation. The following table
reconciles net income/(loss), as reflected in the consolidated
statements of operations, to EBITDA and Adjusted EBITDA:
For the Three Months
Ended December 31,
For the Twelve Months
Ended December 31,
(in thousands of U.S. dollars)
2020
2019
2020
2019
Net income (loss)
$(56,862
)
$26,758
$26,396
$(10,082
)
Total other expense, net
6,634
14,611
34,401
49,031
Operating income
(50,228
)
41,369
60,797
38,949
Depreciation and amortization
29,185
28,741
115,783
108,703
Noncontrolling interest
(1,727
)
(1,541
)
(6,508
)
(2,936
)
EBITDA
$(22,770
)
$68,569
$170,072
$144,716
Fair value of TC amortization
595
757
2,789
2,389
Nonrecurring corporate expenses
628
594
1,474
2,657
Loss on sale of vessels/cancelled project
cost
29,551
-
29,551
18,344
Adjusted EBITDA
$8,004
$69,920
$203,886
$168,106
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210312005057/en/
Investor Relations Inquiries: Robert Brinberg Tel:
+1-212-517-0810 E-mail: IR@diamondsshipping.com
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