EX-99.1 2 ex99_1.htm EXHIBIT 99.1
Exhibit 99.1
 
Consolidated Statement of Operations
(U.S. Dollars in Thousands, Except for Earnings Per Share and Share Data)

As described in Item 4.02, the errors in Genco’s previously reported financial information were related to the items included in the determination of the “Reorganization items, net” account balance on the face of Genco’s Consolidated Statement of Operations of the Predecessor for the period from January 1, 2014 to July 9, 2014. A preliminary estimate of the adjustments that will be required to correct these errors in Genco’s previously reported Consolidated Statement of Operations for the Predecessor period from January 1, 2014 to July 9, 2014 is as follows:

   
Predecessor
Period from January 1 to
July 9,
2014
As Reported
    
Adjustment
    
Predecessor
Period from January 1 to
July 9,
2014
As Restated
  
Loss before reorganization items, net
  
$
(96,795
)
    
—
    
$
(96,795
)
Reorganization items, net
    
882,167
      
(1,797,807
) (a)
    
(915,640
)
                         
(Loss) income before income taxes
    
785,372
      
(1,797,807
)
    
(1,012,435
)
Income tax expense
    
(815
)
    
—
      
(815
)
Net (loss) income
    
784,557
      
(1,797,807
)
    
(1,013,250
)
Less: Net loss attributable to noncontrolling interest
    
(8,734
)
    
(53,367
) (b)
    
(62,101
)
Net (loss) income attributable to Genco Shipping & Trading Limited
  
$
793,291
    
$
(1,744,440
)
  
$
(951,149
)
                       
Net (loss) income per share-basic
  
$
18.21
      
N/A
 
  
$
(21.83
)
Net (loss) income per share-diluted
  
$
18.21
      
N/A
 
  
$
(21.83
)
Weighted average common shares outstanding-basic
    
43,568,942
      
N/A
 
    
43,568,942
  
Weighted average common shares outstanding-diluted
    
43,568,942
      
N/A
 
    
43,568,942
  
Dividends declared per share
  
$
—
      
N/A
 
  
$
—
  

(a) The adjustment is the result of errors in Genco’s prior accounting for the following transactions associated with the application of fresh-start accounting:

   
Adjustment
  
Discharge of Predecessor equity <1>
  
$
(829,974
)
Issuance of Successor equity <2>
    
(1,133,900
)
Recording of goodwill in fresh-start accounting <3>
    
166,067
  
Total
  
$
(1,797,807
)

 <1> The accounting consequences related to the discharge of Predecessor equity were previously reported as a component in the computation of “Reorganization items, net”. The adjustment is to exclude the accounting consequences related to the discharge of Predecessor equity from the computation of “Reorganization items, net”.

<2> The accounting consequences related to the issuance of Successor equity were previously excluded as a component in the computation of “Reorganization items, net”. The adjustment is to include from the accounting consequences related to the issuance of Successor equity in the computation of “Reorganization items, net”.

<3> The accounting consequences related to the recognition of goodwill were previously excluded as a component in the computation of “Reorganization items, net”. The adjustment is to include the accounting consequences related to the establishment of goodwill in the computation of “Reorganization items, net”.

(b) The adjustment is the result of errors in Genco’s prior accounting for the consequences to noncontrolling interests of certain transactions associated with the application of fresh-start accounting.