-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, miaYc4qjb8NS0FldB0PpOa/hmMHR2pSvXURpWSxMKBX++IgEmsSDjB+2Ecpt/r1a 9AWFNLAwwj46vlAFRuZiDA== 0000278041-94-000023.txt : 19941122 0000278041-94-000023.hdr.sgml : 19941122 ACCESSION NUMBER: 0000278041-94-000023 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940930 FILED AS OF DATE: 19941114 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERNATIONAL SHIPHOLDING CORP CENTRAL INDEX KEY: 0000278041 STANDARD INDUSTRIAL CLASSIFICATION: 4412 IRS NUMBER: 362989662 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-10852 FILM NUMBER: 94559193 BUSINESS ADDRESS: STREET 1: 650 POYDRAS ST STE 1700 CITY: NEW ORLEANS STATE: LA ZIP: 70130 BUSINESS PHONE: 5045295461 10-Q 1 THIRD QUARTER 1994 FORM 10-Q 13 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1994 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 2-63322 INTERNATIONAL SHIPHOLDING CORPORATION (Exact name of registrant as specified in its charter) Delaware 36-2989662 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 650 Poydras Street New Orleans, Louisiana 70130 (Address of principal executive offices) (Zip Code) (504) 529-5461 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Common Stock $ 1 Par Value 5,346,611 shares (September 30, 1994) 2 PART I - FINANCIAL INFORMATION INTERNATIONAL SHIPHOLDING CORPORATION CONSOLIDATED CONDENSED BALANCE SHEETS (Dollars in Thousands) (Unaudited)
September 30, December 31, 1994 1993 ASSETS ____________ _____________ Current Assets: Cash and Cash Equivalents $ 26,025 $ 13,492 Marketable Securities 4,470 19,278 Accounts Receivable, Net 49,477 46,134 Net Investment in Direct Financing Leases 2,205 2,257 Current Deferred Income Taxes 2,593 1,955 Other Current Assets 4,075 6,666 Material and Supplies Inventory, At Cost 8,678 7,853 ____________ ____________ Total Current Assets 97,523 97,635 ____________ ____________ Investments In and Advances to Unconsolidated Entities 33,834 34,905 ____________ ____________ Net Investment in Direct Financing Leases 27,131 28,775 ____________ ____________ Vessels, Property and Other Equipment, At Cost: Vessels and Barges 465,482 432,429 Other Marine Equipment 4,006 3,842 Terminal Facilities 18,049 17,521 Land 2,317 2,317 Furniture and Equipment 13,093 9,676 ____________ ____________ 502,947 465,785 Less - Accumulated Depreciation (209,126) (189,924) ____________ ____________ 293,821 275,861 ____________ ____________ Other Assets: Deferred Charges in Process of Amortization 33,373 41,992 Acquired Contract Costs, Net of Accumulated Amortization 24,798 26,781 Due from Related Parties 6,091 4,360 Other 14,407 12,929 ____________ ____________ 78,669 86,062 ____________ ____________ $ 530,978 $ 523,238 ============ ============ The accompanying notes are an integral part of these statements.
3 INTERNATIONAL SHIPHOLDING CORPORATION CONSOLIDATED CONDENSED BALANCE SHEETS (Dollars in Thousands) (Unaudited)
September 30, December 31, 1994 1993 LIABILITIES AND STOCKHOLDERS' INVESTMENT _____________ ____________ Current Liabilities: Current Maturities of Long-Term Debt $ 25,009 $ 25,879 Current Maturities of Capital Lease Obligations 9,474 5,000 Accounts Payable and Accrued Liabilities 44,080 49,447 Current Liabilities to be Refinanced (5,905) (340) _____________ ____________ Total Current Liabilities 72,658 79,986 _____________ ____________ Current Liabilities to be Refinanced 5,905 340 _____________ ____________ Billings in Excess of Income Earned and Expenses Incurred 6,423 4,133 _____________ ____________ Long-Term Capital Lease Obligations, Less Current Maturities 21,092 27,020 _____________ ____________ Long-Term Debt, Less Current Maturities 216,924 213,112 _____________ ____________ Reserves and Deferred Credits: Deferred Income Taxes 41,812 40,151 Claims and Other 23,320 23,999 _____________ ____________ 65,132 64,150 _____________ ____________ Stockholders' Investment: Common Stock 5,405 5,405 Additional Paid-in Capital 54,450 54,450 Retained Earnings 84,309 75,775 Less - Shares of Common Stock in Treasury, at Cost (1,133) (1,133) Net Unrealized Holding Loss on Marketable Securities (187) -- _____________ ____________ 142,844 134,497 _____________ ____________ $ 530,978 $ 523,238 ============= ============ The accompanying notes are an integral part of these statements.
4 INTERNATIONAL SHIPHOLDING CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Dollars in Thousands Except Per Share Data) (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, 1994 1993 1994 1993 _______________________________________ Revenues $ 76,434 $ 77,345 $238,367 $241,130 Operating Differential Subsidy 5,134 4,869 15,710 14,924 _______________________________________ 81,568 82,214 254,077 256,054 _______________________________________ Operating Expenses: Voyage Expenses 58,698 60,813 189,421 189,953 Vessel and Barge Depreciation 6,094 6,063 18,324 17,812 _______________________________________ Gross Voyage Profit 16,776 15,338 46,332 48,289 _______________________________________ Administrative and General Expenses 6,549 6,631 19,917 19,994 (Loss) Gain on Sale of Assets (98) -- (91) 87 _______________________________________ Operating Income 10,129 8,707 26,324 28,382 _______________________________________ Interest: Interest Expense 5,078 5,772 15,472 15,574 Investment Income (766) (414) (2,240) (807) _______________________________________ 4,312 5,358 13,232 14,767 _______________________________________ Unconsolidated Entities (Net of Applicable Taxes): Equity in Net Income (Loss) of Unconsolidated Entities (199) 62 87 (2,184) Gain on Sale of Equity Interests -- -- -- 900 (Allowance) for Doubtful Accounts -- -- 900 (900) _______________________________________ (199) 62 987 (2,184) _______________________________________ Income Before Provision for Income Taxes and Extraordinary Gain (Loss) 5,618 3,411 14,079 11,431 _______________________________________ Provision for Income Taxes: Current 1,044 454 3,767 2,371 Deferred 954 1,441 747 2,978 State 122 51 229 378 _______________________________________ 2,120 1,946 4,743 5,727 _______________________________________ Income Before Extraordinary Gain (Loss) $ 3,498 $ 1,465 $ 9,336 $ 5,704 _______________________________________ Extraordinary Gain (Loss) (Net of Income Tax (Provision) Benefit of ($57), and $820, respectively) -- 110 -- (1,592) _______________________________________ Net Income $ 3,498 $ 1,575 $ 9,336 $ 4,112 ======================================= Less: Preferred Stock Dividends -- 154 -- 868 Accretion of Discount on Preferred Stock -- 75 -- 202 --------------------------------------- Net Income Applicable to Common and Common Equivalent Shares $ 3,498 $ 1,346 $ 9,336 $ 3,042 ======================================= Earnings Per Share: Income Before Extraordinary Gain (Loss) $ 0.65 $ 0.24 $ 1.75 $ 0.90 Extraordinary Gain (Loss) -- 0.02 -- (0.31) Net Income $ 0.65 $ 0.26 $ 1.75 $ 0.59 ======================================= Common and Common Equivalent Shares 5,346,611 5,256,511 5,346,611 5,180,384 The accompanying notes are an integral part of these statements.
5 INTERNATIONAL SHIPHOLDING CORPORATION CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' INVESTMENT (Dollars in Thousands) (Unaudited)
Additional Net Common Paid-In Retained Treasury Unrealized Stock Capital Earnings Stock Holding Loss Total _______ _________ ________ ________ _____________ _______ Balance at December 31, 1992 $4,978 $48,216 $71,943 $ (1,133) $ -- $124,004 Net Income for Year Ended December 31, 1993 5,929 5,929 Preferred Stock Dividends (868) (868) Accretion of Discount on Preferred Stock (202) (202) Cash Dividends (1,027) (1,027) Issuance of Stock, 427,500 Shares Pursuant to Exercise of Warrants 427 6,234 6,661 ___________________________________________________________ Balance at December 31, 1993 $5,405 $ 54,450 $ 75,775 $ (1,133) $ -- $ 134,497 Net Income for Nine Months Ended September 30, 1994 9,336 9,336 Cash Dividends (802) (802) Unrealized Holding Loss on Marketable Securities, Net of Deferred Taxes (187) (187) _________________________________________________________ Balance at September 30, 1994 $5,405 $ 54,450 $ 84,309 $ (1,133) $ (187) $142,844 ========================================================= The accompanying notes are an integral part of these statements.
6 INTERNATIONAL SHIPHOLDING CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Dollars in Thousands) (Unaudited)
Nine Months Ended September 30, 1994 1993 ___________________ Cash Flows from Operating Activities: Net Income $ 9,336 $ 4,112 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation 19,227 18,471 Amortization of Deferred Charges and Other Assets 12,197 13,651 Provision for Deferred Income Taxes 747 2,978 Equity in Unconsolidated Entities (987) 2,184 Loss (Gain) on Sale of Vessels and Other Property 91 (87) Extraordinary Item -- 2,450 Changes in: Reserve for Claims and Other Deferred Credits (679) (7,635) Net Investment in Direct Financing Leases 1,696 1,737 Unearned Income 2,078 (8,021) Other Assets (1,754) 1,222 Accounts Receivable (3,308) 8,733 Inventories and Other Current Assets 1,766 99 Accounts Payable and Accrued Liabilities (2,290) 3,716 __________________ Net Cash Provided by Operating Activities 38,120 43,610 __________________ Cash Flows from Investing Activities: Purchase of Vessels and Other Property (36,548) (9,855) Additions to Additions to Deferred Charges (4,605) (14,559) Proceeds from Sale of Vessels and Other Property 623 2,472 Proceeds from (Purchase of) Short-Term Investments 14,808 (15,055) Investment in and Advances to Unconsolidated Entities 1,049 664 Purchase of LITCO -- (1,606) Other Investing Activities -- (4,997) __________________ Net Cash Used by Investing Activities (24,673) (42,936) __________________ Cash Flows from Financing Activities: Proceeds from Issuance of Debt and Capital Lease Obligations 21,109 138,248 Reduction of Debt and Capital Lease Obligations (21,221) (128,236) Preferred and Common Stock Dividends Paid (802) (1,627) Proceeds from Issuance of Common Stock -- 4,278 Redemption of Preferred Stock -- (13,750) _________________ Net Cash Used by Financing Activities (914) (1,087) _________________ Net Increase (Decrease) in Cash and Cash Equivalents 12,533 (413) Cash and Cash Equivalents at Beginning of Period 13,492 30,879 __________________ Cash and Cash Equivalents at End of Period $ 26,025 $ 30,466 ================== The accompanying notes are an integral part of these statements.
7 INTERNATIONAL SHIPHOLDING CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS SEPTEMBER 30, 1994 (Unaudited) Note 1. Basis of Preparation The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures required by generally accepted accounting principles for complete financial statements have been omitted. It is suggested that these interim statements be read in conjunction with the financial statements and notes thereto included in the Form 10-K of International Shipholding Corporation for the year ended December 31, 1993. Certain reclassifications have been made to prior period financial information in order to conform to current year presentations. Interim statements are subject to possible adjustments in connection with the annual audit of the Company's accounts for the full year 1994; in the opinion of management, all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of the information shown have been included. The foregoing 1994 interim results are not necessarily indicative of the results of operations for the full year 1994. The Company's policy is to consolidate all subsidiaries in which it holds a greater than 50% voting interest. All significant intercompany accounts and transactions have been eliminated. The Company uses the cost method to account for investments in entities in which it holds less than a 20% voting interest and in which the Company cannot exercise significant influence over operating and financial activities. The Company uses the equity method to account for investments in entities in which it holds a 20% to 50% voting interest. Certain investments previously accounted for under the equity method are currently accounted for under the cost method as a result of a sale of partial interests as further discussed in the "Results of Operations". 8 INTERNATIONAL SHIPHOLDING CORPORATION AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS The Company's vessels are operated under a variety of charters and contracts. The nature of these arrangements is such that, without a material variation in gross voyage profits (total revenues less voyage expenses and vessel and barge depreciation), the revenues and expenses attributable to a vessel deployed under one type of charter or contract can differ substantially from those atttibutable to the same vessel if deployed under a different type of charter or contract. Accordingly, depending on the mix of charters or contracts in place during a particular accounting period, the Company's revenues and expenses can fluctuate substantially from one period to another even though the number of vessels deployed, the number of voyages completed, the amount of cargo carried and the gross voyage profit derived from the vessels remain relatively constant. As a result, fluctuations in voyage revenues and expenses are not necessarily indicative of trends in profitability, and management believes that gross voyage profit is a more appropriate measure of performance than revenues. Accordingly, the discussion below addresses variations in gross voyage profits rather than variations in revenues. Gross Voyage Profit. Gross voyage profit increased by 9.4% to $16.8 million in the Third Quarter of 1994 as compared to $15.3 million in the same period in 1993. Contributing to this increase was improved freight rates and increased volume on westbound cargo in the Company's Trans- Atlantic LASH liner service. In addition, extended maintenance was carried out on one of the Company's vessels causing it to be out-of-service during most of the Third Quarter of 1993. That vessel had no out-of-service days in the same period of 1994. Partially offsetting these revenue increases was lower gross voyage profit generated by the Company's LASH vessels employed in liner service between ports on the U.S. Gulf/U.S. Atlantic Coast and South Asia (Trade Routes 18 and 17) as a result of lower freight rates and cargo volume on the Eastbound leg of this service. Results in 1994 also reflect 17 days out-of-service for the scheduled drydocking of a vessel chartered to the Military Sealift Command (the "MSC"). Gross voyage profit decreased by 4.1% to $46.3 million in the first nine months of 1994 as compared to $48.3 million for the same period of 1993. Contributing to this decrease was the aforementioned reduction in gross voyage profit generated by the LASH vessels employed on Trade Routes 18 and 17. Partially offsetting this negative variance was the drydocking of ten 9 vessels for approximately 250 days in the first nine months of 1993 as compared to the drydocking of only three vessels in the comparable period in 1994 for approximately 50 days. Vessel and barge depreciation during the Third Quarter of 1994 approximated the amount during the comparable period of 1993. Depreciation increased slightly in the nine months ended September 30, 1994 as compared to the comparable period in 1993 due to amortization of costs associated with the Company's barge refurbishment program, costs associated with vessel upgrade work done on the AMAZON and the acquisition in June 1993 of the remaining 50% interest in a company which operates a LASH barge intermodal terminal. Other Income and Expense. Administrative and general expense during the Third Quarter of 1994 and the first nine months of 1994 was consistent with that of the comparable periods of 1993. Interest expense decreased by 12.1% to $5.1 million in the Third Quarter of 1994 as compared to $5.8 million in the same period in 1993 primarily due to the prepayment of approximately $63.8 million of debt during 1993 from the issuance of $100 million 9% Senior Unsecured Notes in July, 1993 and reduced balances on other outstanding debt. Interest expense during the first nine months of 1994 was consistent with that of the comparable period in 1993 reflecting increases due to the issuance of the aforementioned $100 million Senior Notes in mid 1993 offset by reductions due to early prepayments made from these funds and regularly scheduled payments on other outstanding debt. Investment income increased from $414,000 in the Third Quarter of 1993 to $766,000 in the Third Quarter of 1994. This increase reflected higher interest rates earned on invested funds and the recognition of interest earned on a promissory note related to the sale of an 18.5% interest in A/S Havtor as further discussed below. These items also contributed to the increase from $807,000 in the first nine months of 1993 to $2,240,000 in the comparable period of 1994. Additionally impacting the favorable variance was a higher average balance of invested funds during the first nine months of 1994. The Company's share of earnings from unconsolidated entities decreased from net income of $62,000 in the Third Quarter of 1993 to a net loss of $199,000 in the Third Quarter of 1994. This reduction resulted primarily from the drydocking of one of the PROBO vessels for approximately 14 days in the Third Quarter of 1994. The Company's share of earnings from unconsolidated entities increased from a net loss of $2.2 million in the first nine months of 1993 to net income of $1 million in the first nine months of 1994. The loss in the first nine months of 1993 10 resulted primarily from the Company's investment in A/S Havtor and A/S Havtor Management, Norwegian companies in which the Company had an interest. During the First Quarter of 1993 the Company sold an 18.5% direct interest in A/S Havtor for $7.6 million, of which $2.8 million was received in cash and $4.8 million was received in the form of a promissory note. The transaction reduced the Company's direct interest in A/S Havtor to 14.8% and resulted in a gain before taxes of approximately $1.4 million. A provision for doubtful accounts was recorded in 1993 to reflect the deferral of the gain until receipt of the proceeds from the promissory note, which matures in mid- 1996. In the Second Quarter of 1994, A/S Havtor and associated Norwegian companies merged with a publicly listed company on the Oslo Stock Exchange. This new public company, Havtor A/S, operates mainly Liquified Petroleum Gas (LPG) Carriers. In substitution for the A/S Havtor stock held as collateral under the aforementioned promissory note, the Company received shares in the publicly listed Havtor A/S. Due to the liquidity of these shares, deferral of the gain is no longer necessary, therefore in the Second Quarter of 1994 the related allowance was reversed resulting in income after tax of $900,000. Since the Company has no substantive control regarding their operations and holds direct and indirect ownership interests in each that are less than 20%, the investments have been accounted for since April 1, 1993 under the cost method of accounting, which calls for recognition of income only upon the distribution of dividends. Also contributing to the improved results for the non- consolidated entities in the first nine months of 1994 as compared to the comparable period in 1993 was an additional 11% interest acquired in the first quarter of 1993 in two PROBO vessels increasing the Company's interest to 50% and improved charter rates on these two vessels. This improvement was partially offset by 14 days out-of-service for one of the vessels for scheduled drydocking in the Third Quarter of 1994. Income Taxes. The Company provided $2 million for federal income taxes in the Third Quarter of 1994 at the statutory rate of 35% as compared to $1.9 million in the Third Quarter of 1993 at the same rate. Income of unconsolidated entities and extraordinary items are shown net of applicable taxes. The Revenue Reconciliation Act of 1993 which was passed in August, 1993 provided a retroactive tax rate of 35% on taxable income in excess of $10 million per year beginning January 1, 1993. The higher tax rate resulted in an adjustment to the Company's current provision for income taxes in the Third Quarter of 1993 of $101,000 for income earned in 1993 as well as an adjustment of $764,000 required by FASB Statement No. 109 for tax provisions made prior to 1993. During the first nine months of 1994, the Company provided $4.5 million for 11 federal income taxes at the statutory rate of 35% as compared to a provision of $5.3 million at the same rate in the first nine months of 1993. During the first nine months of 1993 the Company recognized an extraordinary loss of $1.6 million, net of taxes, resulting from prepayment penalties and the write- off of deferred loan costs associated with the early payment of high interest debt and the redemption of preferred stock from the proceeds of the Company's $100 million Senior Notes issued in July 1993. LIQUIDITY AND CAPITAL RESOURCES The Company's working capital increased from $17.6 million at December 31, 1993 to $24.9 million at September 30, 1994, after provision for current maturities of long- term debt of $25 million and capital lease obligations of $9.5 million. Cash and cash equivalents increased during the first nine months of 1994 by $12.5 million to a total of $26 million at September 30, 1994. Positive cash flows were achieved from operating activities in the first nine months of 1994 in the amount of $38.1 million. The major source of cash from operations was net income, adjusted for non-cash provisions such as depreciation and amortization. Net cash used for investing activities amounted to $24.7 million during the first nine months of 1994. Capital investments included $28.5 million for construction costs of a molten sulphur carrier, $1.5 million for the refurbishment of barges, $3.3 million for computer software development and upgrades, $1.4 million for upgrade work on one of the Company's vessels and $1.8 million in other miscellaneous items. Also, the Company added $4.6 million of deferred charge items, primarily drydocking and vessel survey expenditures. The Company received approximately $14.8 million from the liquidation of securities, $1 million from its investments in unconsolidated entities and $623,000 from the sales of property. Net cash used by financing activities during the first nine months of 1994 was $900,000. Uses of cash included regularly scheduled principal payments of $21.2 million for debt and lease obligations and $802,000 used to meet common stock dividend requirements. Partially offsetting these uses of cash were proceeds in the amount of $21.1 million drawn under an interim financing agreement for the construction of the Company's molten sulphur carrier. The Company's molten sulphur carrier was delivered in early October, 1994 and was named "SULPHUR ENTERPRISE". She entered a long-term contract with Freeport-McMoRan Resource Partners ("FRP") carrying molten sulphur between Louisiana and Westcoast Florida, iN 12 support of FRP production of agricultural fertilizers. As of September 30, 1994, the Company had paid $43.8 million of the total cost of approximately $60 million. Of these costs, $28.8 million was paid during the first nine months of 1994 and the balance was paid during 1993 and 1992. Capitalized interest related to this construction totaled $654,000 for the first nine months of 1994. Interim construction financing was received through a pool of commercial banks and was repaid with permanent financing in October. The Company received financing in the amount of $43.4 million through U.S. Government Guaranteed Ship Financing Bonds to cover the permanent fixed rate financing of approximately 75% of the cost of the vessel. The Company has entered a long-term contract with P.T. Freeport Indonesia Company (an affiliate of Freeport-McMoRan Copper and Gold, Inc.) to provide transportation services for supplies associated with the operation of a copper and gold mine on the Indonesian Island of Irian Jaya. The Company will acquire and convert two semi-submersible barge carrying vessels and will have 26 cargo barges built to be used with the aforementioned vessels. The cost of these capital expenditures is expected to approximate $70 million. The Company will also charter or acquire a small container vessel in order to fulfill the requirements of the contract which is expected to commence late 1995. The Company anticipates financing a major portion of the cost of these acquisitions through medium-to long-term loans with commercial banks. Two U.S. Flag LASH vessels operating in the Company's LASH liner service, "ROBERT E. LEE" and "STONEWALL JACKSON", have been operating under leases since their delivery from the builders in 1974. These leases provided the Company with the option to purchase the vessels at the termination of the leases in October 1994. The Company exercised its option to purchase these vessels for fair market value as determined by an appraisal panel organized under the terms of the lease. The Company has received a commitment for medium-term financing for approximately 80% of the purchase and anticipates receipt of the funds during the Fourth Quarter of 1994. The Financial Accounting Standards Board issued Statement No. 112, "Employers' Accounting for Postemployment Benefits", during 1992. This statement will be adopted in 1994 and is not expected to have a material effect on the Company's financial position or results of operations. The Financial Accounting Standards Board issued Statement No. 115, "Accounting for Certain Investments in Debt and Equity Securities", during 1993. The Company has adopted this 13 statement during 1994 and it has not had a material effect on the Company's financial position or results of operations. To meet short-term requirements when fluctuations occur in working capital, the Company has available three lines of credit totaling $15 million. At September 30, 1994, these lines were undrawn. The Company has not been notified that it is a potentially responsible party in connection with any environmental matters. At a regular meeting held October 19, 1994, the Board of Directors declared a quarterly dividend of five cents per share of common stock to be paid on December 16, 1994 to its stockholders of record as of December 2, 1994. PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (b) No reports on Form 8-k have been filed for the nine months ended September 30, 1994. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. INTERNATIONAL SHIPHOLDING CORPORATION ___________________________________ Gary L. Ferguson Vice President and Chief Financial Officer Date: November 10, 1994 EX-27 2 FINANCIAL DATA SCHEDULE
5 1,000 9-MOS DEC-31-1994 SEP-30-1994 26,025 4,470 47,477 0 8,678 97,523 502,947 (209,126) 530,978 72,658 238,016 5,405 0 0 137,439 530,978 0 254,077 0 189,421 38,241 (91) 15,472 14,079 4,743 9,336 0 0 0 9,336 0 0
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