EX-99.1 2 a5528645ex99-1.htm EXHIBIT 99.1 a5528645ex99-1.htm
Exhibit 99.1
 
October 25, 2007
Page 1 of 4
 
INTERNATIONAL SHIPHOLDING CORPORATION
REPORTS THIRD QUARTER RESULTS

Mobile, Alabama - International Shipholding Corporation today reported results for the three month and nine month periods ended September 30, 2007.  The Company reported net income for the three months ended September 30, 2007 of $2.317 million compared to a net loss of $936,000 for the three months ended September 30, 2006.  The results of both the 2007 and 2006 third quarters reflect losses from our discontinued LASH operations.  Excluding the discontinued LASH operations losses, net income for the third quarter of 2007 was $3.433 million as compared to $3.785 million for the third quarter of 2006. For the first nine months of 2007, net income was $14.010 million as compared to a net loss of $5.314 million for the nine months ended September 30, 2006.  In addition to the aforementioned losses from discontinued LASH operations, the results for the nine months ended September 30, 2006 included a non-cash charge of $5.763 million, net of taxes, associated with the impairment of the investment in the Rail Ferry service’s terminal in New Orleans.  Excluding the discontinued LASH operations losses and impairment charges, net income for the nine months ended September 30, 2007, was $8.303 million and for the nine months ended September 30, 2006, was $6.937 million.

The Company’s Time Charter segment results for the third quarter of 2007 were below the comparable quarter in 2006.   Our U. S. Flag Jones Act Coal Carrier, which operated all of the days under the vessel’s primary Time Charter Agreement in 2006, only operated 61 days under this Charter Agreement in the third quarter of 2007.   However, through the nine month period ended September 30, 2007, the vessel operated 163 days under this Charter Agreement as compared to 109 days for the nine month period ended September 30, 2006.

The results of the Company’s Contract of Affreightment segment was slightly higher in the third quarter of 2007 when compared to the same period in 2006 due to an increase in tonnage levels.

Our Rail Ferry segment reported markedly improved results in the third quarter of 2007 from the break-even levels of the comparable 2006 quarter.  This segment, with the additional capacity of the second deck available for carrying rail cars for most of the third quarter, operated at 80% of its rail car volume capacity.  We expect the carried rail car volume to continue at these levels for the remainder of 2007 with an increase in capacity utilization thereafter.

Depreciation expense was slightly higher in the third quarter of 2007 as compared to the same period in 2006, reflecting the placement into service of the second decks on the Rail Ferry vessels.

Administrative and General Expenses for the third quarter of 2007 reflect the netting of relocation incentive payments received from various Alabama agencies in the quarter.  The nine month period ended September 30, 2007, which reflects a neutral impact of the relocation expenses and offsetting recoveries, indicates an increase of $1.342 million over the comparable 2006 nine month period.  The increase in the 2007 year to date period is primarily the result of the Company’s one time payment to fulfill its office lease obligations in the New Orleans area.
 
 
 
 
 
 
 
October 25, 2007
2 of 4
International Shipholding Corporation
  
Reports Third Quarter Results
  
 
 
The increase in the Company’s investment income reflects improved liquidity levels.  On October 15, 2007 the Company used some of its available cash to retire the remaining $38.97 million of its 7¾ % Senior Unsecured Notes.

The results of the remaining International Flag LASH vessel are reported as discontinued operations reflecting the Company’s decision in the third quarter of 2007 to phase out the utilization of this vessel by the end of this year.  The Company expects to sell this remaining LASH vessel and 370 LASH barges in the fourth quarter of 2007 and the first quarter of 2008.  The gain from the discontinued liner service for the nine months ended September 30, 2007, reflects the prior quarters’ sale of Waterman’s U.S. Flag LASH vessel and LASH barges.

The common stock of International Shipholding Corporation is traded on the New York Stock Exchange with the symbol ISH.  The Company’s preferred stock is traded on the NYSE with the symbol “ISH Pr”.

 
 
 
 
 
October 25, 2007
3 of 4
International Shipholding Corporation
  
Reports Third Quarter Results
  
 
 
Unaudited results for the period indicated along with prior year results are (in thousands except share and per share data):

INTERNATIONAL SHIPHOLDING CORPORATION
  
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
  
(All Amounts in Thousands Except Share Data)
  
(Unaudited)
  
   
   
Three Months Ended September 30,
    
Nine Months Ended September 30,
  
   
2007
    
2006
    
2007
    
2006
  
Revenues
   $
51,306
     $
51,220
     $
147,140
     $
140,124
  
                                 
Operating Expenses:
                                
         Voyage Expenses
    
38,572
      
37,320
      
110,184
      
103,828
  
         Vessel and Barge Depreciation
    
5,312
      
5,160
      
15,386
      
15,395
  
         Impairment Loss
    
-
      
-
      
-
      
8,866
  
                                 
Gross Voyage Profit
    
7,422
      
8,740
      
21,570
      
12,035
  
                                 
Administrative and General Expenses
    
4,108
      
3,852
      
13,311
      
11,969
  
(Gain) on Sale of Other Assets
    
-
       (82 )     (10 )     (103 )
                                 
Operating Income
    
3,314
      
4,970
      
8,269
      
169
  
                                 
Interest and Other:
                                
          Interest Expense
    
2,692
      
2,696
      
7,857
      
8,373
  
          Gain on Sale of Investment
     (2 )    
8
       (352 )     (460 )
          Investment Income
     (1,143 )     (300 )     (2,354 )     (1,047 )
          Loss on Early Extinguishment of Debt
    
-
      
124
      
-
      
213
  
     
1,547
      
2,528
      
5,151
      
7,079
  
                                 
 Income (Loss) from Continuing Operations Before (Benefit)
                                
      Provision for Income Taxes and Equity in Net Income
                                
      of Unconsolidated Entities
    
1,767
      
2,442
      
3,118
       (6,910 )
                                 
(Benefit) Provision for Income Taxes:
                                
         Current
    
-
      
35
      
-
      
105
  
         Deferred
     (175 )     (61 )     (1,074 )     (4,361 )
         State
    
-
      
-
       (4 )    
2
  
      (175 )     (26 )     (1,078 )     (4,254 )
                                 
Equity in Net Income of Unconsolidated
                                
    Entities (Net of Applicable Taxes)
    
1,491
      
1,317
      
4,107
      
3,830
  
                                 
Income from Continuing Operations
    
3,433
      
3,785
      
8,303
      
1,174
  
                                 
(Loss) Gain from Discontinued Liner Service
                                
    Loss before benefits for income taxes
     (1,266 )     (4,727 )     (3,376 )     (6,513 )
    Gain on Sale of Liner Assets
    
155
      
11
      
9,097
      
39
  
    Provision for Income Taxes
    
5
      
5
      
14
      
14
  
 
 
 
 
 
 
October 25, 2007
4 of 4
International Shipholding Corporation
  
Reports Third Quarter Results
  
 

Net (Loss) Gain from Discontinued Liner Service
     (1,116 )     (4,721 )    
5,707
       (6,488 )
                                 
Net Income (Loss)
   $
2,317
     $ (936 )   $
14,010
     $ (5,314 )
                                 
Preferred Stock Dividends
    
600
      
600
      
1,800
      
1,800
  
                                 
Net Income (Loss) Available to Common Stockholders
   $
1,717
     $ (1,536 )   $
12,210
     $ (7,114 )
                                 
                                 
Basic and Diluted Earnings Per Common Share:
                                
                                 
Net Income (Loss) Available to Common Stockholders - Basic
                                
           Continuing Operations
   $
0.43
     $
0.52
     $
1.03
     $ (0.10 )
           Discontinued Operations
     (0.17 )     (0.77 )    
0.90
       (1.06 )
    $
0.26
     $ (0.25 )   $
1.93
     $ (1.16 )
                                 
Net Income (Loss) Available to Common Stockholders - Diluted
                                
           Continuing Operations
   $
0.40
     $
0.47
     $
1.00
     $ (0.10 )
           Discontinued Operations
   $ (0.13 )     (0.58 )   $
0.69
       (1.06 )
    $
0.27
     $ (0.11 )   $
1.69
     $ (1.16 )
                                 
Weighted Average Shares of Common Stock Outstanding:
                                
         Basic
    
6,518,412
      
6,119,187
      
6,306,647
      
6,114,974
  
         Diluted
    
8,518,412
      
8,119,187
      
8,319,000
      
6,114,974
  



Contacts:
Niels M. Johnsen, Chairman                                                      (212) 943-4141
Erik L. Johnsen, President                                                         (251) 243-9221