Global Ship Lease, Inc. (NYSE: GSL) (the “Company”, “Global Ship
Lease” or “GSL”), an owner of containerships, announced today its
unaudited results for the three and nine months ended September 30,
2024.
Third Quarter of 2024 and Year to Date
Highlights
- Reported operating revenue of $174.1 million
for the third quarter of 2024, a decrease of 0.2% on operating
revenue of $174.5 million for the prior year period. For the nine
months ended September 30, 2024, operating revenue was $528.6
million, up 6.6% from $495.9 million in the prior year period.
- Reported net income available to common
shareholders of $78.8 million for the third quarter of 2024, a
decrease of 4.7% on net income of $82.7 million for the prior year
period. Normalized net income (a non-U.S. GAAP financial measure,
described below) for the same period was $86.6 million, up 5.1% on
Normalized net income of $82.4 million for the prior year period.
For the nine months ended September 30, 2024, net income available
to common shareholders was $253.9 million, an increase of 10.2% on
net income of $230.3 million for the prior year period. Normalized
net income for the same period was $262.3 million, up 13.1% on
Normalized net income for the prior year period of $231.9
million.
- Generated $123.3 million of Adjusted EBITDA (a
non-U.S. GAAP financial measure, described below) for the third
quarter of 2024, up 1.1% on Adjusted EBITDA of $121.9 million for
the prior year period. Adjusted EBITDA for the nine months ended
September 30, 2024 was $371.1 million, up 10.8% on Adjusted EBITDA
of $334.9 million for the prior year period.
- Earnings per share for the third quarter of
2024 was $2.22, down 5.1% on the earnings per share of $2.34 for
the prior year period. Normalized earnings per share (a non-U.S.
GAAP financial measure, described below) for the third quarter of
2024 was $2.45, up 5.2% on the Normalized earnings per share of
$2.33 for the prior year period. Earnings per share for the nine
months ended September 30, 2024 was $7.20, up 10.9% on the earnings
per share of $6.49 for the prior year period. Normalized earnings
per share for the nine months ended September 30, 2024 was $7.44,
up 13.8% on the Normalized earnings per share of $6.54 for the
prior year period.
- Declared a dividend of $0.45 per Class A
common share for the third quarter of 2024, to be paid on or about
December 4, 2024 to common shareholders of record as of November
22, 2024. Paid a dividend of $0.45 per Class A common share for the
second quarter of 2024 on September 4, 2024.
- On August 7, 2024, entered into a new $300.0
million senior secured term loan facility with Credit Agricole
Corporate and Investment Bank, ABN AMRO Bank N.V. and Bank of
America N.A. to refinance or prepay, in full or in part, a total of
10 existing debt facilities to (i) decrease the Company’s weighted
average cost of debt from 4.57% to 3.95% as of September 30, 2024,
(ii) extend the Company’s weighted average maturity of debt from
2.6 years to 4.0 years and (iii) increase the Company’s
unencumbered vessels from 5 to 16. The new facility is scheduled to
mature in the third quarter of 2030 and bears interest of Term SOFR
+ 1.85%.
- On June 26, 2024, announced upgrades by three
leading credit rating agencies. The Corporate Family Rating for
Global Ship Lease was upgraded to Ba2 from Ba3, with a stable
outlook, by Moody’s Investor Service, S&P Global Ratings
upgraded the long-term issuer credit rating to BB+ from BB, with a
stable outlook and the Kroll Bond Rating Agency (“KBRA”) upgraded
the corporate rating to BB+ from BB, with a stable outlook. KBRA
also affirmed the BBB/stable investment grade rating and outlook
for the 5.69% Senior Secured Notes due July 15, 2027 (the “2027
Secured Notes”).
- Between January 1, 2024 and September 30,
2024, added $596.6 million of contracted revenue to forward charter
cover, calculated on the basis of the median firm periods of the
respective charters, on a total of 32 new charters or extensions:
10 for ships between 2,200 and 3,500 TEU; 17 for ships between
5,000 TEU and 6,100 TEU; and, five for ships between 6,500 TEU and
8,000 TEU. Durations of these new charters and extensions for the
median firm periods range between nine months and 40 months. A
number of the vessels were forward fixed several months ahead of
their expected availability in the market.
- During the first quarter of 2024, repurchased
an aggregate of 251,772 Class A common shares for a total
consideration of approximately $5.0 million. Repurchase prices
ranged between $18.98 and $20.83 per share, with an average price
of $19.84 per share. There were no such repurchases in the second
and third quarter of 2024. Approximately $33.0 million of capacity
remains under the Company’s opportunistic share buy-back
authorization.
- On August 16, 2024, entered into a new equity
distribution agreement with Evercore Group L.L.C. to
opportunistically offer and sell Class A common shares having an
aggregate offering price of up to $100.0 million. As of the date of
this press release, 27,106 Class A common shares have been issued
at an average price of $27.02 (compared to an average price of
$18.52 for the repurchase of a total of $57.0 million Class A
common shares since the inception of the opportunistic share
repurchase program in 3Q2021). We expect to be highly disciplined
in the issuance of shares under this agreement going forward.
George Youroukos, our Executive Chairman,
stated: “Despite an uncertain macro environment, the factors that
have driven significant containership charter market strength
throughout 2024 remain firmly intact. Growth in container volumes
has been healthy, and materially extended average voyage lengths
due to re-routings around the Cape of Good Hope continue to stretch
the global fleet to its limits, with idle capacity close to zero -
forcing the liner operators to speed up their fleets to offset
capacity constraints. With supply limited, and high-quality tonnage
at a premium, we are continuing to lock in the current market
strength with attractive multi-year charters for even some of the
oldest vessels in our fleet, adding almost $600 million of
contracted revenues year-to-date – including just under $200
million during the third quarter. Looking forward, the limited
orderbook for mid-sized and smaller containerships like those in
the GSL fleet is further counterbalanced by relatively lower
quality, less efficient vessels that will increasingly struggle to
compete and will likely be scrapped out over time. Our fleet of
highly efficient mid-size and smaller containerships purpose-built
or retrofitted to meet the needs of our liner customers positions
us to generate attractive returns on our existing assets, while we
also position ourselves for selective growth and fleet renewal,
with the goal of continuing to power strong cashflows for our
shareholders in the future.”
Thomas Lister, our Chief Executive Officer,
stated: “Container shipping is a cyclical market which can generate
exceptional returns, but also requires prudent risk management and
patience. Our goal at GSL is to provide a stable platform from
which investors can access those returns. The combination of
supportive market conditions, our longstanding focus on building
and maintaining a mid-sized and smaller fleet oriented towards the
evolving needs of the liner industry, and our consistent financial
discipline have put us in a position to return material capital to
our shareholders and generate a Total Shareholder Return1 of more
than 350% over the last five year period through September 30,
2024, approximately 3x that of a historically strong S&P 500.
We have simultaneously built crucial optionality in a cyclical
market, and we are ready to act quickly if an acquisition
opportunity emerges that meets our strict criteria, consistent with
our disciplined track record. We nevertheless appreciate that the
greatest opportunities often become available on a countercyclical
basis, when capital available to the industry is far harder to come
by, and where those with strong balance sheets and financial
flexibility can achieve outsized returns. With this in mind, we are
very pleased to have opportunistically re-financed $300 million of
debt during the quarter, bringing our weighted average cost of debt
down to 3.95%, and extending the weighted average maturity to four
years. Our commitment to building long term shareholder value
through the cycle is well-established, and we will continue to
balance patience and discipline with the ability and capacity to
act decisively at the right time.”
____________________________1 Source, FactSet.
Total Shareholder Returns (TSR) for the five year period through
September 30, 2024. TSR is the sum of share price appreciation for
the period (ending share price minus starting share price) and
dividends paid during the period (assuming re-investment of those
dividends), with that sum divided by the starting share price;
expressed as a percentage.
SELECTED FINANCIAL DATA – UNAUDITED
(thousands of U.S. dollars)
|
|
Three |
Three |
Nine |
Nine |
| |
months ended |
months ended |
months ended |
months ended |
| |
September 30, 2024 |
September 30, 2023 |
September 30, 2024 |
September 30, 2023 |
| |
|
|
|
|
| Operating Revenues (1) |
174,064 |
174,530 |
528,622 |
495,901 |
| Operating Income |
92,189 |
94,157 |
283,130 |
264,364 |
| Net Income (2) |
78,763 |
82,687 |
253,912 |
230,299 |
| Adjusted EBITDA (3) |
123,349 |
121,850 |
371,061 |
334,922 |
| Normalized Net Income (3) |
86,583 |
82,356 |
262,295 |
231,895 |
(1) Operating Revenues are net of address
commissions which represent a discount provided directly to a
charterer based on a fixed percentage of the agreed upon charter
rate and also includes the amortization of intangible liabilities,
the effect of the straight lining of time charter modifications and
the compensation from charterers for drydock and for other
capitalized expenses installation. Brokerage commissions are
included in “Time charter and voyage expenses” (see below).
(2) Net Income available to common
shareholders.
(3) Adjusted EBITDA and Normalized Net Income
are non-U.S. Generally Accepted Accounting Principles (“U.S. GAAP”)
financial measures, as explained further in this press release, and
are considered by Global Ship Lease to be useful measures of its
performance. For reconciliations of these non-U.S. GAAP financial
measures to net income, the most directly comparable U.S. GAAP
financial measure, please see “Reconciliation of Non-U.S. GAAP
Financial Measures” below.
Operating Revenues and Utilization
Operating revenues derived from fixed-rate,
mainly long-term, time-charters were $174.1 million in the third
quarter of 2024, down $0.4 million (or 0.2%) on operating revenues
of $174.5 million in the prior year period. The period-on-period
decrease in operating revenues was principally due to an increase
in off hire days plus a non-cash $1.6 million decrease in the
effect from straight lining time charter modifications offset,
almost entirely, by charter renewals at higher rates on a number of
vessels. There were 362 days of offhire in the third quarter of
2024 of which 333 were for scheduled drydockings, compared to 246
days of offhire and idle time in the prior year period of which 191
were for scheduled drydockings. Utilization for the third quarter
of 2024 was 94.2% compared to utilization of 96.1% in the prior
year period.
For the nine months ended September 30, 2024,
operating revenues were $528.6 million, up $32.7 million (or 6.6%)
on operating revenues of $495.9 million in the comparative period,
mainly due to our acquisition of four vessels which were delivered
to us in the second quarter of 2023 (the “Four Vessels”) and a
decrease in off hire days and idle time, partially offset by a
non-cash $7.6 million decrease in the effect from straight lining
time charter modifications. There were 619 days of offhire and idle
time in the nine months ended September 30, 2024 of which 519 were
for scheduled drydockings, compared to 876 days of offhire and idle
time in the prior year period of which 627 were for scheduled
drydockings. Utilization for the nine months ended September 30,
2024 was 96.7% compared to utilization of 95.1% in the prior year
period.
The table below shows fleet utilization for the
three and nine months ended September 30, 2024 and 2023, and for
the years ended December 31, 2023, 2022, 2021 and 2020.
| |
Three months ended |
|
Nine months ended |
|
Year ended |
|
|
Sep 30, |
|
Sep 30, |
|
|
Sep 30, |
|
Sep 30, |
|
|
Dec 31, |
|
Dec 31, |
|
Dec 31, |
|
Dec 31, |
|
|
Days |
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
|
2023 |
|
2022 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ownership days |
6,256 |
|
6,256 |
|
|
18,632 |
|
18,029 |
|
|
24,285 |
|
23,725 |
|
19,427 |
|
16,044 |
|
| Planned offhire - scheduled
drydock |
(333 |
) |
(191 |
) |
|
(519 |
) |
(627 |
) |
|
(701 |
) |
(581 |
) |
(752 |
) |
(687 |
) |
| Unplanned offhire |
(29 |
) |
(33 |
) |
|
(98 |
) |
(207 |
) |
|
(233 |
) |
(460 |
) |
(260 |
) |
(95 |
) |
| Idle time |
(nil |
) |
(22 |
) |
|
(2 |
) |
(42 |
) |
|
(62 |
) |
(30 |
) |
(88 |
) |
(338 |
) |
| Operating days |
5,894 |
|
6,010 |
|
|
18,014 |
|
17,153 |
|
|
23,289 |
|
22,654 |
|
18,327 |
|
14,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Utilization |
94.2 |
% |
96.1 |
% |
|
96.7 |
% |
95.1 |
% |
|
95.9 |
% |
95.5 |
% |
94.3 |
% |
93.0 |
% |
As of September 30, 2024, one regulatory
drydocking was in progress. During the fourth quarter of 2024, six
further regulatory drydockings are anticipated.
Vessel Operating Expenses
Vessel operating expenses, which are primarily
the costs of crew, lubricating oil, repairs, maintenance, insurance
and technical management fees, were up 1.1% to $46.6 million for
the third quarter of 2024, compared to $46.1 million in the prior
year period. The increase of $0.5 million was mainly due to (i) an
increase in repairs, spares and maintenance expenses for planned
main engine maintenance and overhaul of diesel generators as well
as main engine annual spares delivery due to timing of planned
schedule and (ii) the impact of inflation on fees and expenses,
including management fees. The average cost per ownership day in
the quarter was $7,447, compared to $7,369 for the prior year
period, up $78 per day, or 1.1%.
For the nine months ended September 30, 2024,
vessel operating expenses were $141.6 million, or an average of
$7,601 per day, compared to $132.3 million in the comparative
period, or $7,337 per day, an increase of $264 per ownership day,
or 3.6%. The increase of $9.3 million was mainly due to (i) the
acquisition of the Four Vessels in the second quarter of 2023, (ii)
an increase in repairs, spares and maintenance expenses for planned
main engine maintenance and overhaul of diesel generators as well
as main engine annual spares delivery due to timing of planned
schedule, (iii) increased cost of insurance due to increased
premiums as asset values rose over the period, and (iv) impact of
inflation on fees and expenses, including management fees.
Time Charter and Voyage Expenses
Time charter and voyage expenses comprise mainly
commission paid to ship brokers, the cost of bunker fuel for
owner’s account when a ship is off-hire or idle and miscellaneous
owner’s costs associated with a ship’s voyage. Time charter and
voyage expenses were $6.4 million for the third quarter of 2024,
compared to $6.0 million in the prior year period. The increase was
mainly due to an increase in bunkering expenses due to higher off
hire days partially offset by a decrease in other voyage
expenses.
For the nine months ended September 30, 2024,
time charter and voyage expenses were $17.1 million, or an average
of $915 per day, compared to $18.2 million in the comparative
period, or $1,009 per day, a decrease of $94 per ownership day, or
9.3% mainly to (i) a decrease in bunkering expenses due to fewer
off hire days, and (ii) a decrease in voyage administration costs
and operational requests from charterers offset by increased
commissions on charter renewals at higher rates.
Depreciation and Amortization
Depreciation and amortization for the third
quarter of 2024 was $25.0 million, compared to $24.0 million in the
prior year period. The increase was mainly due to the 10
drydockings completed after September 30, 2023.
Depreciation and amortization for the nine
months ended September 30, 2024 was $73.8 million, compared to
$67.3 million in the comparative period, mainly due to the factor
noted above plus the acquisition of the Four Vessels in the second
quarter of 2023.
General and Administrative Expenses
General and administrative expenses were $3.9
million in the third quarter of 2024, compared to $4.2 million in
the prior year period. The movement was mainly due to the decrease
in payroll expenses following the retirement of our former CEO
effective March 31, 2024 plus a reduction in the non-cash charge
for stock-based compensation expense. The average general and
administrative expenses per ownership day for the third quarter of
2024 was $623, compared to $679 in the prior year period, a
decrease of $56 or 8.2%.
For the nine months ended September 30, 2024,
general and administrative expenses were $13.0 million, compared to
$13.7 million in the comparative period. The movement was mainly
due to the decrease in the non-cash charge for stock-based
compensation expense offset by an increase in bonuses paid to our
employees. The average general and administrative expense per
ownership day for the nine-month period ended September 30, 2024
was $700, compared to $763 in the comparative period, a decrease of
$63 or 8.3%.
Adjusted EBITDA
Adjusted EBITDA (a non-GAAP financial measure)
was $123.3 million for the third quarter of 2024, up from $121.9
million for the prior year period, with the net increase being
mainly due to charter renewals at higher rates on a number of
vessels.
Adjusted EBITDA for the nine months ended
September 30, 2024 was $371.1 million, compared to $334.9 million
for the comparative period, an increase of $36.2 million or 10.8%
mainly due to our acquisition of the Four Vessels which were
delivered to us in the second quarter of 2023 and a decrease in off
hire days and idle time.
Interest Expense and Interest Income
Debt as at September 30, 2024 totaled $688.0
million, comprising $397.6 million of secured bank debt
collateralized by vessels, $245.0 million of 2027 Secured Notes
collateralized by vessels, and $45.4 million under sale and
leaseback financing transactions. As of September 30, 2024, 16
vessels were unencumbered.
Debt as at September 30, 2023 totaled $874.3
million, comprising $461.5 million of secured bank debt
collateralized by vessels, $297.5 million of 2027 Secured Notes
collateralized by vessels, and $115.3 million under sale and
leaseback financing transactions. As of September 30, 2023, five
vessels were unencumbered.
Interest and other finance expenses for the
third quarter of 2024 was $12.6 million, up from $11.6 million for
the prior year period. The increase was mainly due to (i) the
non-cash write off of deferred financing costs of $2.7 million on
the full repayments of six of our credit facilities and two of our
sale and leaseback agreements, (ii) a prepayment fee of $0.7
million on the full repayment of the sale and leaseback agreement
with CMBFL and (iii) a prepayment fee of $0.2 million on the
partial repayment of the Macquarie Credit Facility. The blended
cost of debt, taking into account our interest rate caps, has
significantly decreased from approximately 4.55% for the third
quarter of 2023 to 3.95% for the third quarter of 2024 mainly due
to our recent refinancing activity.
Interest and other finance expenses for the nine
months ended September 30, 2024 was $32.9 million, down from $33.6
million for the comparative period mainly due to the factors noted
above.
Interest income for the third quarter of 2024
was $4.7 million, up from $2.5 million for the prior year period
mainly due to higher invested amounts.
Interest income for the nine months period ended
September 30, 2024 was $12.5 million, compared to $6.9 million for
the comparative period.
Other income/(expenses), net
Other income, net was $1.0 million in the third
quarter of 2024, compared to other expenses, net of $0.3 million in
the prior year period.
Other income, net was $3.2 million for the nine
month period ended September 30, 2024, compared to $0.9 million for
the comparative period.
Fair value adjustment on derivatives
In December 2021, we entered into
a USD 1 month LIBOR interest rate cap of 0.75% through
the fourth quarter of 2026 on $484.1 million of floating
rate debt, which reduces over time in line with anticipated debt
amortization and represented approximately half of the outstanding
floating rate debt. In February 2022, we entered into two
additional USD 1-month LIBOR interest rate caps of 0.75% through
the fourth quarter of 2026 on the remaining balance of $507.9
million of floating rate debt. As a result of the
discontinuation of LIBOR, on July 1, 2023, our interest rate caps
have automatically transited to 1 month Compounded SOFR at a net
rate of 0.64%. A negative fair value adjustment of $4.2 million for
the third quarter of 2024 was recorded through the statement of
income. The negative fair value adjustment for the nine month
period ended September 30, 2024 was $5.0 million.
Earnings Allocated to Preferred Shares
The Series B Preferred Shares carry a coupon of
8.75%, the cost of which for the third quarter of 2024 was $2.4
million, the same as in the prior year period.
The cost for the nine months ended September
2024 was $7.2 million, the same as for the nine months ended
September 30, 2023.
Net Income Available to Common Shareholders
Net income available to common shareholders for
the third quarter of 2024 was $78.8 million. Net income available
to common shareholders for the prior year period was $82.7
million.
Earnings per share for the third quarter of 2024
was $2.22, a decrease of 5.1% from the earnings per share for the
prior year period, which was $2.34.
For the nine months ended September 30, 2024,
net income available to common shareholders was $253.9 million. Net
income available to common shareholders for the nine months ended
September 30, 2023 was $230.3 million.
Earnings per share for the nine months ended
September 30, 2024 was $7.20, an increase of 10.9% from the
earnings per share for the comparative period, which was $6.49.
Normalized net income (a non-GAAP financial
measure) for the third quarter of 2024, was $86.6 million.
Normalized net income for the prior year period was $82.4
million.
Normalized net income for the nine months ended
September 30, 2024 was $262.3 million, as compared to $231.9 for
the comparative period.
Normalized earnings per share (a non-GAAP
financial measure) for the third quarter of 2024 was $2.45, an
increase of 5.2% from Normalized earnings per share for the prior
year period, which was $2.33.
Normalized earnings per share for the nine
months ended September 30, 2024 was $7.44, an increase of 13.8%
from Normalized earnings per share for the comparative period,
which was $6.54.
Fleet
As of September 30, 2024, there were 68
containerships in the fleet.
|
Vessel Name |
Capacityin TEUs |
Lightweight(tons) |
YearBuilt |
Charterer |
Earliest CharterExpiry Date |
Latest CharterExpiry Date (2) |
Daily CharterRate $ |
|
|
|
|
|
|
|
|
|
|
CMA CGM Thalassa |
11,040 |
38,577 |
2008 |
CMA CGM |
4Q25 |
2Q26 |
47,200 |
|
ZIM Norfolk (1) |
9,115 |
31,764 |
2015 |
ZIM |
2Q27 |
4Q27 |
65,000 |
|
Anthea Y (1) |
9,115 |
31,890 |
2015 |
MSC |
3Q25 |
4Q25 |
Footnote (3) |
|
ZIM Xiamen (1) |
9,115 |
31,820 |
2015 |
ZIM |
3Q27 |
4Q27 |
65,000 |
|
MSC Tianjin |
8,603 |
34,243 |
2005 |
MSC (4) |
3Q27 |
4Q27 |
Footnote (4) |
|
MSC Qingdao |
8,603 |
34,609 |
2004 |
MSC (4) |
3Q27 |
4Q27 |
Footnote (4) |
|
GSL Ningbo |
8,603 |
34,340 |
2004 |
MSC |
3Q27 |
1Q28 |
Footnote (5) |
|
GSL Alexandra |
8,544 |
37,809 |
2004 |
Maersk |
3Q25 |
3Q26 |
Footnote (6) |
|
GSL Sofia |
8,544 |
37,777 |
2003 |
Maersk |
3Q25 |
3Q26 |
Footnote (6) |
|
GSL Effie |
8,544 |
37,777 |
2003 |
Maersk |
3Q25 |
3Q26 |
Footnote (6) |
|
GSL Lydia |
8,544 |
37,777 |
2003 |
Maersk |
2Q25 |
3Q26 |
Footnote (6) |
|
GSL Eleni |
7,847 |
29,261 |
2004 |
Maersk |
4Q27 |
2Q29 |
16,500 (7) |
|
GSL Kalliopi |
7,847 |
29,261 |
2004 |
Maersk |
4Q27 |
2Q29 |
18,900 (7) |
|
GSL Grania |
7,847 |
29,261 |
2004 |
Maersk |
4Q27 |
2Q29 |
17,750 (7) |
|
Colombia Express (1) (18) |
7,072 |
23,424 |
2013 |
Hapag-Lloyd (8) |
4Q28 |
1Q31 |
Footnote (8) |
|
Kristina (1) |
7,072 |
23,421 |
2013 |
CMA CGM (8) |
4Q29 |
4Q31 |
25,910 (8) |
|
Costa Rica Express (ex Katherine) (1) (18) |
7,072 |
23,403 |
2013 |
Hapag-Lloyd (8) |
2Q29 |
3Q31 |
Footnote (8) |
|
Alexandra (1) |
7,072 |
23,348 |
2013 |
Hapag-Lloyd (8) |
2Q29 |
3Q31 |
Footnote (8) |
|
Mexico Express (ex Alexis) (1)(18) |
6,910 |
23,919 |
2015 |
Footnote (8) |
3Q29 |
4Q31 |
Footnote (8) |
|
Jamaica Express (ex Olivia I) (1)(18) |
6,910 |
23,864 |
2015 |
Hapag-Lloyd (8) |
3Q29 |
4Q31 |
Footnote (8) |
|
GSL Christen |
6,840 |
27,954 |
2002 |
OOCL(9) |
4Q27 |
1Q28 |
20,500 (9) |
|
GSL Nicoletta |
6,840 |
28,070 |
2002 |
Maersk |
1Q28 |
2Q28 |
35,750 (9) |
|
CMA CGM Berlioz |
7,023 |
26,776 |
2001 |
CMA CGM |
4Q25 |
2Q26 |
37,750 |
|
Agios Dimitrios |
6,572 |
24,931 |
2011 |
MSC (4) |
2Q27 |
3Q27 |
Footnote (4) |
|
GSL Vinia |
6,080 |
23,737 |
2004 |
Maersk |
1Q28 |
4Q29 |
13,250 (10) |
|
GSL Christel Elisabeth |
6,080 |
23,745 |
2004 |
Maersk |
1Q28 |
3Q29 |
13,250 (10) |
|
GSL Dorothea |
5,992 |
24,243 |
2001 |
Maersk |
2Q25 |
3Q26 |
12,900 (11) |
|
GSL Arcadia |
6,008 |
24,858 |
2000 |
Maersk |
1Q25 |
1Q26 |
12,900 (11) |
|
GSL Violetta |
6,008 |
24,873 |
2000 |
Maersk |
2Q25 |
4Q25 |
18,600 (11) |
|
GSL Maria |
6,008 |
24,414 |
2001 |
Maersk |
4Q25 |
1Q27 |
18,600 (11) |
|
GSL MYNY |
6,008 |
24,876 |
2000 |
Maersk |
2Q25 |
1Q26 |
12,900 (11) |
|
GSL Melita |
6,008 |
24,848 |
2001 |
Maersk |
3Q25 |
3Q26 |
12,900 (11) |
|
GSL Tegea |
5,994 |
24,308 |
2001 |
Maersk |
3Q25 |
3Q26 |
12,900 (11) |
|
Tasman |
5,936 |
25,010 |
2000 |
Maersk |
1Q25 |
1Q25 |
21,500 |
|
Dimitris Y (18) |
5,936 |
25,010 |
2000 |
ONE |
2Q25 |
3Q25 |
33,900 |
|
Ian H |
5,936 |
25,128 |
2000 |
Footnote (12) |
4Q27 |
4Q27 |
Footnote (12) |
|
GSL Tripoli |
5,470 |
22,109 |
2009 |
Maersk |
3Q27 |
4Q27 |
36,500 (13) |
|
GSL Kithira |
5,470 |
22,259 |
2009 |
Maersk |
4Q27 |
1Q28 |
36,500 (13) |
|
GSL Tinos |
5,470 |
22,068 |
2010 |
Maersk |
3Q27 |
4Q27 |
36,500 (13) |
|
GSL Syros |
5,470 |
22,099 |
2010 |
Maersk |
4Q27 |
4Q27 |
36,500 (13) |
|
Dolphin II |
5,095 |
20,596 |
2007 |
OOCL |
1Q25 |
3Q25 |
53,500 |
|
Orca I |
5,095 |
20,633 |
2006 |
Maersk |
2Q25 |
4Q25 |
21,000 |
|
CMA CGM Alcazar |
5,089 |
20,087 |
2007 |
CMA CGM |
3Q26 |
1Q27 |
35,500 |
|
GSL Château d’If |
5,089 |
19,994 |
2007 |
CMA CGM |
4Q26 |
1Q27 |
35,500 |
|
GSL Susan |
4,363 |
17,309 |
2008 |
CMA CGM |
3Q27 |
1Q28 |
Footnote (14) |
|
CMA CGM Jamaica |
4,298 |
17,272 |
2006 |
CMA CGM |
1Q28 |
2Q28 |
Footnote (14) |
|
CMA CGM Sambhar |
4,045 |
17,355 |
2006 |
CMA CGM |
1Q28 |
2Q28 |
Footnote (14) |
|
CMA CGM America |
4,045 |
17,355 |
2006 |
CMA CGM |
1Q28 |
2Q28 |
Footnote (14) |
|
GSL Rossi |
3,421 |
16,420 |
2012 |
ZIM |
1Q26 |
3Q26 |
35,681 (15) |
|
GSL Alice |
3,421 |
16,543 |
2014 |
CMA CGM |
2Q25 |
2Q25 |
20,500 |
|
GSL Eleftheria |
3,421 |
16,642 |
2013 |
Maersk |
3Q25 |
4Q25 |
37,975 |
|
GSL Melina |
3,404 |
16,703 |
2013 |
Maersk |
4Q26 |
4Q26 |
29,900 |
|
GSL Valerie |
2,824 |
11,971 |
2005 |
ZIM |
1Q25 |
3Q25 |
32,000 |
|
Matson Molokai |
2,824 |
11,949 |
2007 |
Matson |
2Q25 |
3Q25 |
36,600 |
|
GSL Lalo |
2,824 |
11,950 |
2006 |
MSC |
2Q25 |
3Q25 |
18,000 |
|
GSL Mercer |
2,824 |
11,970 |
2007 |
ONE |
1Q27 |
2Q27 |
35,750 (16) |
|
Athena |
2,980 |
13,538 |
2003 |
MSC |
2Q25 |
3Q25 |
17,500 |
|
GSL Elizabeth |
2,741 |
11,530 |
2006 |
Maersk |
2Q26 |
2Q26 |
20,360 |
|
GSL Chloe (18) |
2,546 |
12,212 |
2012 |
ONE |
1Q27 |
2Q27 |
33,000 (16) |
|
GSL Maren |
2,546 |
12,243 |
2014 |
OOCL |
1Q26 |
2Q26 |
16,500 |
|
Maira |
2,506 |
11,453 |
2000 |
Hapag-Lloyd |
4Q24 |
4Q24 |
16,000 |
|
Nikolas |
2,506 |
11,370 |
2000 |
Maersk |
4Q24 |
4Q24 |
14,250 |
|
Newyorker |
2,506 |
11,463 |
2001 |
Maersk |
1Q25 |
2Q25 |
17,250 |
|
Manet |
2,288 |
11,534 |
2001 |
OOCL |
4Q24 |
2Q25 |
32,000 |
|
Kumasi |
2,220 |
11,652 |
2002 |
Wan Hai |
1Q25 |
2Q25 |
38,000 |
|
Akiteta |
2,220 |
11,592 |
2002 |
OOCL |
4Q24 |
1Q25 |
32,000 |
|
Keta |
2,207 |
11,731 |
2003 |
CMA CGM |
1Q25 |
1Q25 |
25,000 |
|
Julie |
2,207 |
11,731 |
2002 |
MSC |
2Q25 |
3Q25 |
Footnote (17) |
|
(1) |
Modern design, high reefer capacity, fuel-efficient “ECO”
vessel. |
| (2) |
In many instances charterers have the option to extend a charter
beyond the nominal latest expiry date by the amount of time that
the vessel was off hire during the course of that charter. This
additional charter time (“Offhire Extension”) is computed at the
end of the initially contracted charter period. The Latest Charter
Expiry Dates shown in this table have been adjusted to reflect
offhire accrued up to September 30, 2024, plus estimated offhire
scheduled to occur during the remaining lifetimes of the respective
charters. However, as actual offhire can only be calculated at the
end of each charter, in some cases actual Offhire Extensions – if
invoked by charterers – may exceed the Latest Charter Expiry Dates
indicated. |
| (3) |
Anthea Y. The charter is expected to generate annualized Adjusted
EBITDA of approximately $11.8 million. |
| (4) |
MSC Tianjin, MSC Qingdao and Agios Dimitrios were each fixed for
minimum 36 months – maximum 38 months. The new charters commenced
after the vessels were drydocked. Agios Dimitrios new charter
commenced in 2Q 2024. MSC Tianjin. and MSC Qingdao new charters
commenced in 3Q 2024. MSC Tianjin, MSC Qingdao and Agios Dimitrios
new charters are expected to generate annualized Adjusted EBITDA of
approximately $6.9 million, $8.1 million, and $5.9 million,
respectively. MSC Qingdao & Agios Dimitrios are fitted with
Exhaust Gas Cleaning Systems (“scrubbers”). |
| (5) |
GSL Ningbo is chartered at a rate expected to generate annualized
Adjusted EBITDA of approximately $16.5 million. |
| (6) |
GSL Alexandra, GSL Sofia, GSL Effie and GSL Lydia delivered in 2Q
2023. Contract cover for each vessel is for a minimum firm period
of 24 months from the date each vessel was delivered, with
charterers holding one year extension options. The vessels are
expected to generate aggregate Adjusted EBITDA of approximately
$76.6 million over the minimum firm period, increasing to $95.3
million if all options are exercised. |
| (7) |
GSL Eleni, GSL Kalliopi and GSL Grania, were forward fixed for 35 –
38 months to commence after drydocking, after which the charterer
has the option to extend each charter for a further 12 – 16 months.
Each charter is expected to generate annualized Adjusted EBITDA of
approximately $9.7 million for the firm period. |
| (8) |
Colombia Express (ex Mary), Kristina, Costa Rica Express (ex
Katherine), Alexandra, Mexico Express (ex Alexis), Jamaica Express
(ex Olivia I) were forward fixed to Hapag-Lloyd for 60 months +/-45
days, followed by two periods of 12 months each at the option of
the charterer. The new charter for Colombia Express commenced in
early 2024 and the new charters for Costa Rica Express, Alexandra
and Jamaica Express commenced in 3Q 2024. The new charters for
Kristina and Mexico Express are scheduled to commence in 4Q 2024
upon completion of drydocking. The charters are expected to
generate average annualized Adjusted EBITDA of approximately $13.1
million per ship. |
| (9) |
GSL Nicoletta and GSL Christen were forward fixed for 39 - 42
months and 37 - 40 months, respectively, expected to commence in 4Q
2024. The charters are expected to generate average annualized
Adjusted EBITDA of approximately $11.4 million per ship. |
| (10) |
GSL Vinia and GSL Christel Elizabeth were both forward fixed for 36
– 40 months to commence after drydocking, after which the charterer
has the option to extend each charter for a further 12 – 15 months.
The new charters are both scheduled to commence in 1Q 2025. The
charters are expected to generate average annualized Adjusted
EBITDA of approximately $11.3 million per ship. |
| (11) |
GSL Maria, GSL Violetta, GSL Arcadia, GSL MYNY, GSL Melita, GSL
Tegea and GSL Dorothea. Contract cover for each ship is for a firm
period of at least three years from the date each vessel was
delivered in 2021, with charterers holding a one-year extension
option on each charter (at a rate of $12,900 per day), followed by
a second option (at a rate of $12,700 per day) with the period
determined by – and terminating prior to – each vessel’s 25th year
drydocking & special survey. GSL Arcadia, GSL Dorothea, GSL
Tegea, GSL Melita charterer’s first options were exercised in 1Q
2024, and GSL MYNY charterer’s first options were exercised in 1H
2024, GSL Maria and GSL Violetta charterer’s first options were
exercised in 3Q 2024. |
| (12) |
Ian H was forward fixed for 35 – 36 months. The new charter is
scheduled to commence in 4Q 2024, following the completion of its
scheduled drydocking. The charter is expected to generate average
annualized Adjusted EBITDA of approximately $10.4 million. |
| (13) |
GSL Tripoli, GSL Kithira, GSL Tinos, and GSL Syros. Ultra-high
reefer ships of 5,470 TEU each. Contract cover on each ship is for
a firm period of three years, from their delivery dates in 2021, at
a rate of $36,500 per day, with a period of an additional three
years (at $17,250 per day) at charterers’ option. GSL Tripoli, GSL
Syros, and GSL Tinos charterer’s options were exercised in 2Q 2024.
GSL Kithira charterer’s option was exercised in 3Q 2024. New rates
to commence in 4Q 2024. |
| (14) |
GSL Susan, CMA CGM Jamaica, CMA CGM Sambhar and CMA CGM America are
chartered at rates expected to generate average annualized Adjusted
EBITDA of approximately $11.2 million per vessel. |
| (15) |
GSL Rossi. Chartered at an average rate of $35,681 per day, $38,000
to 1Q 2025 and $35,000 for the remaining period. |
| (16) |
GSL Mercer and GSL Chloe were both forward fixed for 23.5 – 26
months. The new charters are both expected to commence in 1Q 2025.
The charter is expected to generate average annualized Adjusted
EBITDA of approximately $5.8 million per vessel. |
| (17) |
Julie. Chartered at a rate expected to generate average annualized
Adjusted EBITDA of approximately $2.0 million. |
| (18) |
On January 3, 2024, Mary was renamed to Colombia Express. On
January 26, 2024, Beethoven was renamed to GSL Chloe. On April 19,
2024, Zim Europe was renamed to Dimitris Y. On July 9, 2024,
Katherine was renamed to Costa Rica Express. On August 20, 2024,
Olivia I was renamed to Jamaica Express. On September 20, 2024,
Alexis was renamed to Mexico Express |
Conference Call and Webcast
Global Ship Lease will hold a conference call to
discuss the Company's results for the three and nine months ended
September 30, 2024 today, Monday November 11, 2024 at 10:30 a.m.
Eastern Time. There are two ways to access the conference call:
(1) Dial-in: (646)
307-1963 or (800) 715-9871; Event ID: 2474206
Please dial in at least 10 minutes prior to
10:30 a.m. Eastern Time to ensure a prompt start to the call.
(2) Live Internet
webcast and slide presentation: http://www.globalshiplease.com
The webcast will also be archived on the
Company’s website: http://www.globalshiplease.com.
Annual Report on Form 20-F
The Company’s Annual Report for 2023 was filed
with the Securities and Exchange Commission (the “Commission”) on
March 20, 2024. A copy of the report can be found under the
Investor Relations section (Annual Reports) of the Company’s
website at http://www.globalshiplease.com or on the Commission’s
website at www.sec.gov. Shareholders may request a hard copy of the
audited financial statements free of charge by contacting the
Company at info@globalshiplease.com or by writing to Global Ship
Lease, Inc, c/o GSL Enterprises Ltd., 9 Irodou Attikou Street,
Kifisia, Athens, 14561.
About Global Ship Lease
Global Ship Lease is a leading independent owner
of containerships with a diversified fleet of mid-sized and smaller
containerships. Incorporated in the Marshall Islands, Global Ship
Lease commenced operations in December 2007 with a business of
owning and chartering out containerships under fixed-rate charters
to top tier container liner companies. It was listed on the New
York stock Exchange in August 2008.
As of September 30, 2024, Global Ship
Lease owned 68 containerships ranging from 2,207 to 11,040
TEU, with an aggregate capacity of 376,723 TEU. 36 ships are
wide-beam Post-Panamax.
As of September 30, 2024, the average remaining
term of the Company’s charters, to the mid-point of redelivery,
including options under the Company’s control and other than if a
redelivery notice has been received, was 2.3 years on a
TEU-weighted basis. Contracted revenue on the same basis
was $1.78 billion. Contracted revenue was $2.15 billion,
including options under charterers’ control and with latest
redelivery date, representing a weighted average remaining term of
2.8 years.
Reconciliation of Non-U.S. GAAP Financial
Measures
To supplement our financial information
presented in accordance with U.S. GAAP, we use certain “non-GAAP
financial measures” as such term is defined in Regulation G
promulgated by 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 U.S. GAAP. We believe
that the presentation of these measures provides investors with
greater transparency and supplemental data relating to our
financial condition and results of operations, and therefore a more
complete understanding of factors affecting our business and
financial performance than U.S. GAAP measures alone. In addition,
we believe that the presentation of these matters is useful to
investors for period-to-period comparison of results as the items
may reflect certain unique and/or non-operating items such as
impairment charges, contract termination costs or items outside of
our control.
We believe that the presentation of the
following non-U.S. GAAP financial measures is useful to investors
because they are frequently used by securities analysts, investors
and other interested parties in the evaluation of companies in our
industry.
A. Adjusted EBITDAAdjusted
EBITDA represents net income available to common shareholders
before interest income and expense, earnings allocated to preferred
shares, income taxes, depreciation and amortization of drydocking
net costs, gains or losses on the sale of vessels, amortization of
intangible liabilities, charges for share based compensation, fair
value adjustment on derivatives, the effect of the straight lining
of time charter modifications, and impairment losses. Adjusted
EBITDA is a non-U.S. GAAP quantitative measure used to assist in
the assessment of our ability to generate cash from our operations.
We believe that the presentation of Adjusted EBITDA is useful to
investors because it is frequently used by securities analysts,
investors and other interested parties in the evaluation of
companies in our industry. Adjusted EBITDA is not defined in U.S.
GAAP and should not be considered to be an alternative to net
income or any other financial metric required by such accounting
principles. Our use of Adjusted EBITDA may vary from the use of
similarly titled measures by others in our industry.
Adjusted EBITDA is presented herein both on a
historic basis and on a forward-looking basis in certain instances.
We do not provide a reconciliation of such
forward looking non-U.S. GAAP financial measure
to the most directly comparable U.S. GAAP measure due to the
inherent difficulty in accurately forecasting and quantifying
certain amounts necessary for such reconciliation, and we are not
able to provide such reconciliation of such forward-looking
non-U.S. GAAP financial measure without unreasonable effort and
expense.
ADJUSTED EBITDA - UNAUDITED
(thousands of U.S. dollars)
|
|
|
Three |
|
Three |
|
Nine |
|
Nine |
|
| |
|
months |
|
months |
|
months |
|
months |
|
| |
|
ended |
|
ended |
|
ended |
|
ended |
|
| |
|
September 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
| |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
| |
|
|
|
|
|
| Net income
available to Common Shareholders |
78,763 |
|
82,687 |
|
253,912 |
|
230,299 |
|
| |
|
|
|
|
|
| Adjust: |
Depreciation and
amortization |
24,965 |
|
23,980 |
|
73,775 |
|
67,336 |
|
| |
Amortization of
intangible liabilities |
(1,518 |
) |
(1,518 |
) |
(4,523 |
) |
(6,563 |
) |
| |
Fair value
adjustment on derivative asset |
4,193 |
|
(331 |
) |
4,957 |
|
1,037 |
|
| |
Interest
income |
(4,705 |
) |
(2,501 |
) |
(12,532 |
) |
(6,895 |
) |
| |
Interest
expense |
12,540 |
|
11,615 |
|
32,883 |
|
33,623 |
|
| |
Share based
compensation |
2,122 |
|
2,505 |
|
6,582 |
|
7,684 |
|
| |
Earnings allocated
to preferred shares |
2,384 |
|
2,384 |
|
7,152 |
|
7,152 |
|
| |
Income tax |
- |
|
- |
|
1 |
|
5 |
|
| |
Effect from
straight lining time charter modifications |
4,605 |
|
3,029 |
|
8,854 |
|
1,244 |
|
| Adjusted
EBITDA |
123,349 |
|
121,850 |
|
371,061 |
|
334,922 |
|
B. Normalized net income
Normalized net income represents net income
available to common shareholders after adjusting for certain
non-recurring items. Normalized net income is a non-U.S. GAAP
quantitative measure which we believe will assist investors and
analysts who often adjust reported net income for items that do not
affect operating performance or operating cash generated.
Normalized net income is not defined in U.S. GAAP and should not be
considered to be an alternate to net income or any other financial
metric required by such accounting principles. Our use of
Normalized net income may vary from the use of similarly titled
measures by others in our industry.
NORMALIZED NET INCOME – UNAUDITED
(thousands of U.S. dollars)
| |
|
Three |
Three |
|
Nine |
|
Nine |
| |
|
months |
months |
|
months |
|
months |
| |
|
ended |
ended |
|
ended |
|
ended |
| |
|
September 30, |
September 30, |
|
September 30, |
|
September 30, |
|
|
|
2024 |
2023 |
|
2024 |
|
2023 |
| |
|
|
|
|
|
| Net income
available to Common Shareholders |
78,763 |
82,687 |
|
253,912 |
|
230,299 |
| |
|
|
|
|
|
| Adjust: |
Fair value
adjustment on derivative assets |
4,193 |
(331 |
) |
4,957 |
|
1,037 |
| |
Acceleration of
deferred financing costs on full repayment of Credit
Facilities/Sale and Leaseback agreements |
2,757 |
- |
|
2,757 |
|
- |
| |
Prepayment fee on
full repayment of Sale and Leaseback Agreement-CMBFL-$54,000 |
685 |
- |
|
685 |
|
- |
| |
Prepayment fee on
partial repayment of Macquarie Credit Facility |
185 |
- |
|
185 |
|
- |
| |
Accelerated write
off of deferred financing costs related to partial repayment of
HCOB-CACIB Credit Facility |
- |
- |
|
- |
|
108 |
| |
Forfeit of certain
stock-based compensation awards |
- |
- |
|
- |
|
451 |
| |
Effect from new
share-based compensation awards plus acceleration and forfeit of
certain share-based compensation awards |
- |
- |
|
(201 |
) |
- |
| |
|
|
|
|
|
| Normalized net
income |
86,583 |
82,356 |
|
262,295 |
|
231,895 |
C. Normalized Earnings per
Share
Normalized Earnings per Share represents
Earnings per Share after adjusting for certain non-recurring items.
Normalized Earnings per Share is a non-U.S. GAAP quantitative
measure which we believe will assist investors and analysts who
often adjust reported Earnings per Share for items that do not
affect operating performance or operating cash generated.
Normalized Earnings per Share is not defined in U.S. GAAP and
should not be considered to be an alternate to Earnings per Share
as reported or any other financial metric required by such
accounting principles. Our use of Normalized Earnings per Share may
vary from the use of similarly titled measures by others in our
industry.
NORMALIZED EARNINGS PER SHARE – UNAUDITED
|
|
Three |
Three |
|
Nine |
Nine |
| |
months |
months |
|
months |
months |
| |
ended |
ended |
|
ended |
ended |
| |
September 30, |
September 30, |
|
September 30, |
September 30, |
| |
2024 |
2023 |
|
2024 |
2023 |
| |
|
|
|
|
| EPS as reported (USD) |
2.22 |
2.34 |
|
7.20 |
6.49 |
| Normalized net income
adjustments-Class A common shares (in thousands USD) |
7,820 |
(331 |
) |
8,383 |
1,596 |
| Weighted average number of
Class A Common shares |
35,411,553 |
35,355,554 |
|
35,272,574 |
35,473,382 |
| Adjustment on EPS (USD) |
0.23 |
(0.01 |
) |
0.24 |
0.05 |
| Normalized EPS (USD) |
2.45 |
2.33 |
|
7.44 |
6.54 |
Dividend Policy
The declaration and payment of dividends will be
subject at all times to the discretion of the Company’s Board of
Directors. The timing and amount of dividends, if any, will depend
on the Company’s earnings, financial condition, cash flow, capital
requirements, growth opportunities, restrictions in its loan
agreements and financing arrangements, the provisions of Marshall
Islands law affecting the payment of dividends, and other factors.
For further information on the Company’s dividend policy, please
see its most recent Annual Report on Form 20-F.
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, intentions, assumptions
and other statements that are not historical facts. Words or
phrases such as "anticipate", "believe", "continue", "estimate",
"expect", "intend", "may", "ongoing", "plan", "potential",
"predict", “should”, "project", "will" or similar words or phrases,
or the negatives of those words or phrases, may identify
forward-looking statements, but the absence of these words does not
necessarily mean that a statement is not forward-looking. These
forward-looking statements are based on assumptions that may be
incorrect, and Global Ship Lease cannot assure you that these
projections included in these forward-looking statements will come
to pass. Actual results could differ materially from those
expressed or implied by the forward-looking statements as a result
of various factors. The risks and uncertainties include, but are
not limited to:
- future operating
or financial results;
- expectations
regarding the strength of future growth of the container shipping
industry, including the rates of annual demand and supply
growth;
- geo-political
events such as the conflict in Ukraine and the recent escalation of
the Israel-Gaza conflict;
- the potential
disruption of shipping routes, including due to lower water levels
in the Panama Canal and the ongoing attacks by Houthis in the Red
Sea;
- the length and
severity of the ongoing outbreak of the novel coronavirus
(COVID-19) around the world and governmental responses
thereto;
- the financial
condition of our charterers and their ability and willingness to
pay charterhire to us in accordance with the charters and our
expectations regarding the same;
- the overall
health and condition of the U.S. and global financial markets;
- our financial
condition and liquidity, including our ability to obtain additional
financing to fund capital expenditures, vessel acquisitions and for
other general corporate purposes and our ability to meet our
financial covenants and repay our borrowings;
- our expectations
relating to dividend payments and expectations of our ability to
make such payments including the availability of cash and the
impact of constraints under our loan agreements;
- future
acquisitions, business strategy and expected capital spending;
- operating
expenses, availability of key employees, crew, number of off-hire
days, drydocking and survey requirements, costs of regulatory
compliance, insurance costs and general and administrative
costs;
- general market
conditions and shipping industry trends, including charter rates
and factors affecting supply and demand;
- assumptions
regarding interest rates and inflation;
- changes in the
rate of growth of global and various regional economies;
- risks incidental
to vessel operation, including piracy, discharge of pollutants and
vessel accidents and damage including total or constructive total
loss;
- estimated future
capital expenditures needed to preserve our capital base;
- our expectations
about the availability of vessels to purchase, the time that it may
take to construct new vessels, or the useful lives of our
vessels;
- our continued
ability to enter into or renew charters including the re-chartering
of vessels on the expiry of existing charters, or to secure
profitable employment for our vessels in the spot market;
- our ability to
realize expected benefits from our acquisition of secondhand
vessels;
- our ability to
capitalize on our management’s and directors’ relationships and
reputations in the containership industry to its advantage;
- changes in
governmental and classification societies’ rules and regulations or
actions taken by regulatory authorities;
- expectations
about the availability of insurance on commercially reasonable
terms;
- changes in laws
and regulations (including environmental rules and
regulations);
- potential
liability from future litigation; and
- other important
factors described from time to time in the reports we file with the
U.S. Securities and Exchange Commission (the “SEC”).
Forward-looking statements are subject to known
and unknown risks and uncertainties and are based on potentially
inaccurate assumptions that could cause actual results to differ
materially from those expected or implied by the forward-looking
statements. Global Ship Lease's actual results could differ
materially from those anticipated in forward-looking statements for
many reasons specifically as described in Global Ship Lease's
filings with the SEC. Accordingly, you should not unduly rely on
these forward-looking statements, which speak only as of the date
of this communication. Global Ship Lease undertakes no obligation
to publicly revise any forward-looking statement to reflect
circumstances or events after the date of this communication or to
reflect the occurrence of unanticipated events. You should,
however, review the factors and risks Global Ship Lease describes
in the reports it will file from time to time with the SEC after
the date of this communication.
|
Global Ship Lease, Inc.Interim Unaudited
Condensed Consolidated Balance
Sheets(Expressed in thousands of U.S. dollars except share
data) |
| |
| |
|
As of, |
|
|
September 30, 2024 |
|
December 31, 2023 |
|
ASSETS |
|
|
|
|
| CURRENT
ASSETS |
|
|
|
|
| Cash and cash equivalents |
$ |
260,456 |
|
138,640 |
| Time deposits |
|
26,450 |
|
14,000 |
| Restricted cash |
|
59,209 |
|
56,803 |
| Accounts receivable, net |
|
12,847 |
|
4,741 |
| Inventories |
|
15,757 |
|
15,764 |
| Prepaid expenses and other
current assets |
|
28,861 |
|
40,464 |
| Derivative assets |
|
15,178 |
|
24,639 |
| Due from related parties |
|
495 |
|
626 |
| Total current
assets |
$ |
419,253 |
|
295,677 |
| NON - CURRENT
ASSETS |
|
|
|
|
| Vessels in operation |
$ |
1,633,329 |
|
1,664,101 |
| Advances for vessels'
acquisitions and other additions |
|
12,447 |
|
12,210 |
| Deferred charges, net |
|
82,907 |
|
73,720 |
| Other non - current
assets |
|
24,595 |
|
23,935 |
| Derivative assets, net of
current portion |
|
6,520 |
|
16,867 |
| Restricted cash, net of
current portion |
|
58,954 |
|
85,270 |
| Total non - current
assets |
|
1,818,752 |
|
1,876,103 |
| TOTAL
ASSETS |
$ |
2,238,005 |
|
2,171,780 |
| LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
|
| Accounts payable |
$ |
22,853 |
|
17,601 |
| Accrued liabilities |
|
38,556 |
|
28,538 |
| Current portion of long-term
debt and deferred financing costs |
|
152,522 |
|
193,253 |
| Current portion of deferred
revenue |
|
40,870 |
|
40,331 |
| Due to related parties |
|
707 |
|
717 |
| Total current
liabilities |
$ |
255,508 |
|
280,440 |
| LONG-TERM
LIABILITIES |
|
|
|
|
| Long - term debt, net of
current portion and deferred financing costs |
$ |
528,015 |
|
619,175 |
| Intangible liabilities-charter
agreements |
|
1,139 |
|
5,662 |
| Deferred revenue, net of
current portion |
|
65,963 |
|
82,115 |
| Total non - current
liabilities |
|
595,117 |
|
706,952 |
| Total
liabilities |
$ |
850,625 |
|
987,392 |
| Commitments and
Contingencies |
|
- |
|
- |
| SHAREHOLDERS'
EQUITY |
|
|
|
|
| Class A common shares -
authorized214,000,000 shares with a $0.01 par value35,440,224
shares issued and outstanding (2023 – 35,188,323 shares) |
$ |
355 |
|
351 |
| Series B Preferred Shares -
authorized104,000 shares with a $0.01 par value43,592 shares issued
and outstanding (2023 – 43,592 shares) |
|
- |
|
- |
| Additional paid in
capital |
|
678,713 |
|
676,592 |
| Retained earnings |
|
699,583 |
|
488,105 |
| Accumulated other
comprehensive income |
|
8,729 |
|
19,340 |
| Total shareholders'
equity |
|
1,387,380 |
|
1,184,388 |
| TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
$ |
2,238,005 |
|
2,171,780 |
|
Global Ship Lease, Inc.Interim Unaudited
Condensed Consolidated Statements of
Income(Expressed in thousands of U.S. dollars) |
| |
| |
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
| OPERATING
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
Time charter revenues |
$ |
172,546 |
|
|
$ |
173,012 |
|
|
$ |
524,099 |
|
|
$ |
489,338 |
|
| Amortization of intangible
liabilities-charter agreements |
|
1,518 |
|
|
|
1,518 |
|
|
|
4,523 |
|
|
|
6,563 |
|
| Total Operating
Revenues |
|
174,064 |
|
|
|
174,530 |
|
|
|
528,622 |
|
|
|
495,901 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
| Vessel operating expenses
(include related party vessel operating expenses of $5,481 and
$5,171 for each of the three month periods ended September 30, 2024
and 2023, respectively, and $16,289 and $14,072 for each of the
nine month periods ended September 30, 2024 and 2023,
respectively) |
|
46,590 |
|
|
|
46,099 |
|
|
|
141,628 |
|
|
|
132,268 |
|
| Time charter and voyage expenses
(include related party time charter and voyage expenses of $2,170
and $2,139 for each of the three month periods ended September 30,
2024 and 2023, respectively, and $6,487 and $5,801 for each of the
nine month periods ended September 30, 2024 and 2023,
respectively) |
|
6,420 |
|
|
|
6,046 |
|
|
|
17,051 |
|
|
|
18,185 |
|
| Depreciation and
amortization |
|
24,965 |
|
|
|
23,980 |
|
|
|
73,775 |
|
|
|
67,336 |
|
| General and administrative
expenses |
|
3,900 |
|
|
|
4,248 |
|
|
|
13,038 |
|
|
|
13,748 |
|
| Operating
Income |
|
92,189 |
|
|
|
94,157 |
|
|
|
283,130 |
|
|
|
264,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NON-OPERATING
INCOME/(EXPENSES) |
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
4,705 |
|
|
|
2,501 |
|
|
|
12,532 |
|
|
|
6,895 |
|
| Interest and other finance
expenses |
|
(12,540 |
) |
|
|
(11,615 |
) |
|
|
(32,883 |
) |
|
|
(33,623 |
) |
| Other income/(expenses),
net |
|
986 |
|
|
|
(303 |
) |
|
|
3,243 |
|
|
|
857 |
|
| Fair value adjustment on
derivative asset |
|
(4,193 |
) |
|
|
331 |
|
|
|
(4,957 |
) |
|
|
(1,037 |
) |
| Total non-operating
expenses |
|
(11,042 |
) |
|
|
(9,086 |
) |
|
|
(22,065 |
) |
|
|
(26,908 |
) |
| Income before income
taxes |
|
81,147 |
|
|
|
85,071 |
|
|
|
261,065 |
|
|
|
237,456 |
|
| Income taxes |
|
- |
|
|
|
- |
|
|
|
(1 |
) |
|
|
(5 |
) |
| Net
Income |
|
81,147 |
|
|
|
85,071 |
|
|
|
261,064 |
|
|
|
237,451 |
|
| Earnings allocated to Series B
Preferred Shares |
|
(2,384 |
) |
|
|
(2,384 |
) |
|
|
(7,152 |
) |
|
|
(7,152 |
) |
| Net Income available
to Common Shareholders |
$ |
78,763 |
|
|
$ |
82,687 |
|
|
$ |
253,912 |
|
|
$ |
230,299 |
|
|
Global Ship Lease, Inc.Interim Unaudited
Condensed Consolidated Statements of Cash Flows(Expressed
in thousands of U.S. dollars) |
| |
| |
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
| Net income |
$ |
81,147 |
|
|
$ |
85,071 |
|
|
$ |
261,064 |
|
|
$ |
237,451 |
|
| Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and
amortization |
$ |
24,965 |
|
|
$ |
23,980 |
|
|
$ |
73,775 |
|
|
$ |
67,336 |
|
| Amounts reclassified to/(from)
other comprehensive income |
|
326 |
|
|
|
96 |
|
|
|
877 |
|
|
|
(80 |
) |
| Amortization of derivative
assets' premium |
|
1,178 |
|
|
|
1,149 |
|
|
|
3,473 |
|
|
|
3,085 |
|
| Amortization of deferred
financing costs |
|
3,598 |
|
|
|
1,279 |
|
|
|
5,920 |
|
|
|
4,115 |
|
| Amortization of intangible
liabilities-charter agreements |
|
(1,518 |
) |
|
|
(1,518 |
) |
|
|
(4,523 |
) |
|
|
(6,563 |
) |
| Fair value adjustment on
derivative asset |
|
4,193 |
|
|
|
(331 |
) |
|
|
4,957 |
|
|
|
1,037 |
|
| Prepayment fees on debt
repayment |
|
870 |
|
|
|
- |
|
|
|
870 |
|
|
|
- |
|
| Stock-based compensation
expense |
|
2,122 |
|
|
|
2,505 |
|
|
|
6,582 |
|
|
|
7,684 |
|
| Changes in operating
assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| Decrease/(increase) in
accounts receivable and other assets |
$ |
7,326 |
|
|
$ |
(1,049 |
) |
|
$ |
2,837 |
|
|
$ |
(3,511 |
) |
| (Increase)/decrease in
inventories |
|
(186 |
) |
|
|
(715 |
) |
|
|
7 |
|
|
|
(1,877 |
) |
| (Increase) in derivative
asset |
|
(81 |
) |
|
|
- |
|
|
|
(109 |
) |
|
|
- |
|
| Increase/(decrease) in
accounts payable and other liabilities |
|
11,088 |
|
|
|
(183 |
) |
|
|
10,949 |
|
|
|
(6,098 |
) |
| Decrease/(increase) in related
parties' balances, net |
|
477 |
|
|
|
(745 |
) |
|
|
121 |
|
|
|
- |
|
| (Decrease) in deferred
revenue |
|
(1,159 |
) |
|
|
(12,708 |
) |
|
|
(15,613 |
) |
|
|
(468 |
) |
| Payments for drydocking and
special survey costs (1) |
|
(16,137 |
) |
|
|
(9,509 |
) |
|
|
(26,879 |
) |
|
|
(32,562 |
) |
| Unrealized foreign exchange
loss/(gain) |
|
3 |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
- |
|
| Net cash provided by
operating activities |
$ |
118,212 |
|
|
$ |
87,321 |
|
|
$ |
324,307 |
|
|
$ |
269,549 |
|
| Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
| Acquisition of vessels |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
(123,300 |
) |
| Cash paid for vessel
expenditures |
|
(4,647 |
) |
|
|
(8,018 |
) |
|
|
(9,350 |
) |
|
|
(12,569 |
) |
| Advances for vessel
acquisitions and other additions |
|
(4,466 |
) |
|
|
(841 |
) |
|
|
(11,993 |
) |
|
|
(6,786 |
) |
| Net proceeds from sale of
vessel |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5,940 |
|
| Time deposits withdrawn
(placed) |
|
26,550 |
|
|
|
(1,400 |
) |
|
|
(12,450 |
) |
|
|
(5,450 |
) |
| Net cash provided
by/(used in) investing activities |
$ |
17,437 |
|
|
$ |
(10,259 |
) |
|
$ |
(33,793 |
) |
|
$ |
(142,165 |
) |
| Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
| Proceeds from drawdown of
credit facilities |
|
300,000 |
|
|
|
- |
|
|
|
300,000 |
|
|
|
76,000 |
|
| Repayment of credit
facilities/sale and leaseback |
|
(41,982 |
) |
|
|
(50,996 |
) |
|
|
(144,045 |
) |
|
|
(151,267 |
) |
| Repayment of refinanced debt,
including prepayment fees |
|
(292,010 |
) |
|
|
- |
|
|
|
(292,010 |
) |
|
|
- |
|
| Deferred financing costs
paid |
|
(2,625 |
) |
|
|
- |
|
|
|
(2,625 |
) |
|
|
(1,140 |
) |
| Net proceeds from offering of
Class A common shares, net of offering costs |
|
652 |
|
|
|
- |
|
|
|
652 |
|
|
|
- |
|
| Cancellation of Class A common
shares |
|
- |
|
|
|
(3,441 |
) |
|
|
(4,994 |
) |
|
|
(20,421 |
) |
| Class A common shares-dividend
paid |
|
(15,965 |
) |
|
|
(13,300 |
) |
|
|
(42,434 |
) |
|
|
(39,991 |
) |
| Series B preferred
shares-dividend paid |
|
(2,384 |
) |
|
|
(2,384 |
) |
|
|
(7,152 |
) |
|
|
(7,152 |
) |
| Net cash used in
financing activities |
$ |
(54,314 |
) |
|
$ |
(70,121 |
) |
|
$ |
(192,608 |
) |
|
$ |
(143,971 |
) |
| Net
increase/(decrease) in cash and cash equivalents and restricted
cash |
|
81,335 |
|
|
|
6,941 |
|
|
|
97,906 |
|
|
|
(16,587 |
) |
| Cash and cash equivalents and
restricted cash at beginning of the period |
|
297,284 |
|
|
|
246,402 |
|
|
|
280,713 |
|
|
|
269,930 |
|
| Cash and cash
equivalents and restricted cash at end of the period |
$ |
378,619 |
|
|
$ |
253,343 |
|
|
$ |
378,619 |
|
|
$ |
253,343 |
|
| Supplementary Cash
Flow Information: |
|
|
|
|
|
|
|
|
|
|
|
| Cash paid for interest |
|
12,654 |
|
|
|
17,683 |
|
|
|
43,280 |
|
|
|
51,012 |
|
| Cash received from interest
rate caps |
|
6,832 |
|
|
|
8,464 |
|
|
|
21,198 |
|
|
|
24,380 |
|
| Non-cash financing
activities: |
|
|
|
|
|
|
|
|
|
|
|
| Unpaid offering costs |
|
115 |
|
|
|
- |
|
|
|
115 |
|
|
|
- |
|
| Unrealized loss on derivative
assets |
|
(10,637 |
) |
|
|
(380 |
) |
|
|
(14,961 |
) |
|
|
(5,611 |
) |
|
(1) |
The Company has made reclassifications to the prior year statement
of cash flows to correct and reclassify payments for drydocking and
special survey costs from investing outflows to operating outflows
which resulted in a decrease in investing outflows and increase in
operating outflows of $15,086 and $33,386 for the three months and
nine months ended September 30, 2023, respectively. The Company
evaluated the reclassifications from both a quantitative and
qualitative perspective and determined the impacts were immaterial
to the previously issued interim financial statements. |
|
|
|
Investor and Media Contacts: The IGB GroupBryan
Degnan646-673-9701orLeon Berman 212-477-8438
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