-----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, fyUNF1D27ld8wQNZZ+RN4yffrw657kKQaa3bkzsornX8OUu4dbUvhfgPz/ls0Kps tl4q3AKQrySOU0Lz7Q/5tQ== 0000278041-95-000009.txt : 19950517 0000278041-95-000009.hdr.sgml : 19950516 ACCESSION NUMBER: 0000278041-95-000009 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950512 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERNATIONAL SHIPHOLDING CORP CENTRAL INDEX KEY: 0000278041 STANDARD INDUSTRIAL CLASSIFICATION: DEEP SEA FOREIGN TRANSPORTATION OF FREIGHT [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: 95537427 BUSINESS ADDRESS: STREET 1: 650 POYDRAS ST STE 1700 CITY: NEW ORLEANS STATE: LA ZIP: 70130 BUSINESS PHONE: 5045295461 10-Q 1 FIRST QUARTER 1995 FORM 10-Q [TEST] [DOCUMENT-COUNT] 2 [NOTIFY] 72741,717 [SROS] NYSE [PERIOD] 03/31/95 [DESCRIPTION] FIRST QUARTER 1995 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1995 __ 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 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 (March 31, 1995) PART I-FINANCIAL INFORMATION INTERNATIONAL SHIPHOLDING CORPORATION CONSOLIDATED CONDENSED BALANCE SHEETS (Dollars in Thousands) (Unaudited)
March 31, December 31, 1995 1994 ASSETS --------- ------------ Current Assets: Cash and Cash Equivalents $ 34,660 $ 29,611 Marketable Securities 7,222 7,096 Accounts Receivable, Net 46,917 46,844 Net Investment in Direct Financing 2,168 2,186 Leases Other Current Assets 2,922 3,847 Material and Supplies Inventory, 9,310 8,954 At Cost -------- ----------- Total Current Assets 103,199 98,538 -------- ----------- Investments In and Advances to Unconsolidated Entities 33,172 33,160 Net Investment in Direct Financing Leases 26,055 26,588 Vessels, Property and Other Equipment, At Cost: Vessels and Barges 485,427 484,354 Other Marine Equipment 3,826 3,999 Terminal Facilities 18,159 18,116 Land 2,317 2,317 Furniture and Equipment 15,091 14,071 -------- ------- 524,820 522,857 Less - Accumulated Depreciation (220,652) (214,395) -------- ------- 304,168 308,462 -------- ------- Other Assets: Deferred Charges in Process of Amortization 30,155 30,613 Acquired Contract Costs, Net of Accumulated Amortization 23,572 24,185 Due from Related Parties 6,233 6,174 Other 20,308 19,371 -------- -------- 80,268 80,343 -------- -------- $546,862 $547,091 ======== ======== The accompanying notes are an integral part of these statements.
INTERNATIONAL SHIPHOLDING CORPORATION CONSOLIDATED CONDENSED BALANCE SHEETS (Dollars in Thousands) (Unaudited)
March 31, December 31, 1995 1994 --------- ------------ LIABILITIES AND STOCKHOLDERS' INVESTMENT Current Liabilities: Current Maturities of Long-Term $ 27,993 $ 26,755 Debt Current Maturities of Capital 1,469 1,329 Lease Obligations Accounts Payable and Accrued 48,643 53,061 Liabilities Federal Income Tax Payable 1,797 260 Current Deferred Income Tax 1,378 314 Liability --------- --------- Total Current Liabilities 81,280 81,719 Billings in Excess of Income Earned and Expenses Incurred 7,494 4,471 Long-Term Capital Lease Obligations, Less Current Maturities 19,873 21,092 Long-Term Debt, Less Current Maturities 229,719 230,852 Reserves and Deferred Credits: Deferred Income Taxes 37,580 39,414 Claims and Other 22,705 23,227 --------- --------- 60,285 62,641 Stockholders' Investment: Common Stock 5,405 5,405 Additional Paid-in Capital 54,450 54,450 Retained Earnings 89,575 87,757 Less - Treasury Stock (1,133) (1,133) Unrealized Holding Loss on Marketable Securities (86) (163) ---------- --------- 148,211 146,316 $ 546,862 $ 547,091 ========== ========== The accompanying notes are an integral part of these statements.
INTERNATIONAL SHIPHOLDING CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Dollars in Thousands Except Per Share Data) (Unaudited)
Three Months Ended March 31, 1995 1994 --------- ------- Revenues $ 77,908 $ 78,443 Operating Differential Subsidy 5,394 4,918 --------- ------ 83,302 83,361 Operating Expenses: Voyage Expenses 62,265 62,188 Vessel and Barge Depreciation 6,067 6,107 --------- ------ Gross Voyage Profit 14,970 15,066 Administrative and General Expenses 6,462 6,620 Gain on Sale of Assets 1 7 --------- ------ Operating Income 8,509 8,453 --------- ------ Interest: Interest Expense 6,314 5,339 Investment Income (776) (456) --------- ------ 5,538 4,883 --------- ------ Unconsolidated Entities (Net of Applicable Taxes): Equity in Net Income of Unconsolidated Entities 226 142 --------- ------ Income Before Provision for Income Taxes 3,197 3,712 --------- ------ Provision for Income Taxes: Current 1,805 1,819 Deferred (779) (572) State 85 18 --------- ------ 1,111 1,265 --------- ------ Net Income $ 2,086 $ 2,447 ========= ======= Earnings Per Common Share: Net Income $ 0.39 $ 0.46 ========= ======= Weighted Average Shares of Common Stock Outstanding 5,346,611 5,346,611 The accompanying notes are an integral part of these statements.
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, 1993 $ 5,405 $54,450 $75,775 $(1,133) $ -- $134,497 Net Income for the Year Ended December 31, 1994 -- -- 13,051 -- -- 13,051 Cash Dividends -- -- (1,069) -- -- (1,069) Unrealized Holding Loss on Marketable Securities, Net of Deferred Taxes -- -- -- -- (163) (163) -------------------------------------------------------- Balance at December 31, 1994 $ 5,405 $54,450 $87,757 $(1,133) $ (163) $146,316 Net Income for Three Months Ended March 31, 1995 -- -- 2,086 -- -- 2,086 Cash Dividends -- -- (268) -- -- (268) Unrealized Holding Gain on Marketable Securities, Net of Deferred Taxes -- -- -- -- 77 77 --------------------------------------------------------- Balance at March 31, 1995 $ 5,405 $54,450 $89,575 $(1,133) $ (86) $148,211 ========================================================== The accompanying notes are an integral part of these statements.
INTERNATIONAL SHIPHOLDING CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Dollars in Thousands) (Unaudited)
Three Months Ended March 31, 1995 1994 --------- -------- Cash Flows from Operating Activities: Net Income 2,086 2,447 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation 6,450 6,392 Amortization of Deferred Charges and Other Assets 4,321 4,114 Provision (Benefit) for Deferred Income Taxes 1,026 (572) Gain on Sale of Assets (1) (7) Net Investment in Direct Financing Leases 551 570 Unearned Income 3,023 1,150 Equity in Unconsolidated Subsidiaries (226) (142) Reserve for Claims and Other Deferred Credits (1,140) 79 Other Assets 296 2,315 Change in Working Capital: Accounts Receivable (64) 3,283 Inventories and Other Current Assets 569 2,841 Federal Income Taxes Payable (341) 0 Accounts Payable and Accrued Liabilities (3,817) (6,154) -------- ------- Net Cash Provided by Operating Activities 12,733 16,316 Cash Flows from Investing Activities: Purchase of Vessels and Other Property (1,533) (29,348) Additions to Deferred Charges (3,908) (2,663) Investment in and Advances to Unconsolidated Subsidiaries 359 615 Proceeds from Sale of Assets 36 9 Other Investing Activities (1,397) 0 -------- ------- Net Cash Used by Investing Activities (6,443) (31,387) Cash Flows from Financing Activities: Proceeds from Issuance of Debt and Capital Lease Obligations 15,000 21,109 Reduction of Debt and Capital Lease Obligations (15,974) (5,335) Common Stock Dividends (267) (268) --------- -------- Net Cash (Used) Provided by Financing (1,241) 15,506 Activities Net Increase in Cash and Cash Equivalents 5,049 435 Cash and Cash Equivalents at Beginning of Period 29,611 40,904 --------- -------- Cash and Cash Equivalents at End of Period 34,660 41,339 ========= ======== The accompanying notes are an integral part of these statements.
INTERNATIONAL SHIPHOLDING CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS MARCH 31, 1995 (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, 1994. 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 1995; 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 1995 interim results are not necessarily indicative of the results of the operations for the full year 1995. The Company's policy is to consolidate all subsidiaries in which it holds 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 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. 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, liner services, 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 attributable 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 for the First Quarter of 1995 of $15.0 million approximated the amount earned during the First Quarter of 1994 of $15.1 million. Positively impacting the current period results was the addition of the SULPHUR ENTERPRISE to the Company's fleet early in the fourth quarter of 1994. This increase was offset by reductions in gross voyage profit from 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 decreased freight rates. Also contributing to the decrease was a scheduled rate reduction on one of the Company's vessels chartered to the Military Sealift Command (the "MSC"). Vessel and barge depreciation for the First Quarter of 1995 was consistent with the amount in the same period of 1994. Other Income and Expense. Administrative and general expense decreased by 2.4% to $6.5 million during the First Quarter of 1995 as compared to $6.6 million in the comparable period of 1994 stemming from continuing cost reduction efforts. Interest expense increased 18.3% to $6.3 million in the First Quarter of 1995 as compared to $5.3 million in the same period in 1994 primarily due to financing received in late 1994 for the SULPHUR ENTERPRISE of $43.4 million and financing of $12.0 million received during early 1995 for general corporate purposes. This increase was partially offset by regularly scheduled payments on other outstanding debt. Investment income increased from $456,000 in the First Quarter of 1994 to $776,000 in the First Quarter of 1995. This increase reflected higher interest rates earned on invested funds and a higher average balance of invested funds during 1995. The Company's share of earnings from unconsolidated entities increased from $142,000 in the First Quarter of 1994 to $226,000 in the First Quarter of 1995 primarily due to increased charter rates on two PROBO vessels in which the Company holds a 50% interest. Income Taxes. The Company provided $1.0 million for federal income taxes in the First Quarter of 1995 at the statutory rate of 35% as compared to $1.2 million in the First Quarter of 1994 at the same rate. Income of unconsolidated entities is shown net of applicable taxes. LIQUIDITY AND CAPITAL RESOURCES The Company's working capital increased from $16.8 million at December 31, 1994, to $21.9 million at March 31, 1995, after provision for current maturities of long-term debt of $28.0 million and capital lease obligations of $1.5 million. Cash and cash equivalents increased during the first three months of 1995 by $5.0 million to a total of $34.7 million at March 31, 1995. Positive cash flows were achieved from operating activities in the first three months of 1995 in the amount of $12.7 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 $6.4 million during the first three months of 1995. Capital investments included $1.0 million for computer development and upgrades and approximately $500,000 in other miscellaneous items. Other uses of cash included the addition of $3.9 million of deferred charge items, primarily for vessel drydocking, and the purchase of $1.4 million of securities. The Company received $359,000 from its investments in unconsolidated entities and $36,000 from the sales of property. Net cash used by financing activities during the first three months of 1995 was $1.2 million. Uses of cash included regularly scheduled principal payments of $16.0 million for debt and lease obligations and $267,000 used to meet common stock dividend requirements. Partially offsetting these uses of cash were proceeds of $12.0 million drawn on a medium-term, variable rate loan from a commercial bank in early First Quarter 1995 for general corporate purposes. In addition, $3.0 million was drawn under one of the Company's revolving lines of credit. The Company has entered into 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 has acquired and is converting two semi-submersible barge carrying vessels and is having 26 cargo barges built to be used with the aforementioned vessels. As of March 31, 1995, the Company had paid approximately $2.4 million of the total cost of approximately $78.0 million. The Company will also charter a small container vessel to fulfill the requirements of the contract which is expected to commence in late 1995. The Company has arranged financing for approximately 60% of the cost of these acquisitions through a long-term loan with a commercial bank. At March 31, 1995, no draws had been made on this loan. The Company contracted, in October 1994, to purchase a U. S. Flag Coal Carrier with delivery anticipated in the Second Quarter of 1995. The vessel will be placed under long-term charter to a major electric utility company to carry part of its fuel supply. The ship will also be used from time to time to carry cargoes for the account of other charterers. The Company has arranged financing with a commercial bank for a major portion of the purchase price of the vessel, but is also considering alternative financing. As of December 31, 1994, the Company held an approximately 9% interest in Havtor AS, a publicly listed company on the Oslo Stock Exchange, and a 14.2% equity interest in A/S Havtor Management, a privately held Norwegian ship management company. In addition, the company held a 50% interest in a foreign entity, Bulkowner's 1984, which was formed to own and operate two combination dry cargo/petroleum products, PROBO vessels. The Company also held a 10% interest in a limited partnership with certain Norwegian interests to construct and own a liquified petroleum gas carrier which delivered in 1993. During the First Quarter of 1995, the Company signed an agreement whereby A/S Havtor Management and the gas carrier activities of Kvaerner, an unrelated Norwegian company, would be merged into Havtor AS. In addition, Havtor AS agreed to acquire other vessels and vessel interests, including the 50% interest held by the Company in two PROBO vessels and the 10% interest held in a liquified petroleum gas carrier. The merger was approved by shareholders of Havtor AS in a general meeting held in April 1995. As a result of the merger, the Company's interest in Havtor AS now approximates 6.4%. In addition, Havtor AS stock is held by the Company as collateral for a promissory note which matures in mid-1996. The Company has been notified by the debtor that they intend to transfer their interest in these shares to the Company during the second quarter of 1995. After this transfer the Company's interest in Havtor AS will approximate 7.7%. As of April 28, 1995 the market value of this 7.7% investment approximated $47.0 million. The Company's book basis in this investment as of the same date approximated $30.0 million. Due to the liquidity of the shares held in Havtor AS, effective Second Quarter of 1995, the investment will be reflected in the financial statements at fair market value with unrealized holding gains and losses excluded from earnings and reported as a separate component of shareholders' equity in accordance with the required accounting treatment for investments in equity securities that have readily determinable fair values. To meet short-term requirements when fluctuations occur in working capital, the Company has available four lines of credit totaling $35.0 million of which $3.0 million was drawn at March 31, 1995, and repaid in early Second Quarter of 1995. The Company has not been notified that it is a potentially responsible party in connection with any environmental matters. At a regular meeting held April 19, 1995, the Board of Directors declared a quarterly dividend of five cents per share of common stock to be paid on June 16, 1995, to its stockholders of record as of June 2, 1995. PART II-OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (b) No reports on Form 10-K have been filed for the three months ended March 31, 1995. 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 /S/ Gary L. Ferguson _______________________________________ Gary L. Ferguson Vice President and Chief Financial Officer Date: May 12, 1995 EX-27 2 FINANCIAL DATA SCHEDULE
5 3-MOS DEC-31-1995 MAR-31-1995 34660 7222 46917 0 9310 103199 524820 (220652) 546862 81280 249592 5405 0 0 142806 148211 0 83302 0 68332 12776 0 6314 3197 1111 2086 0 0 0 2086 .39 .39
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