International Shipholding Corporation reported results for the year and quarter ended December 31, 2001. Net loss for the fourth quarter was $1.5 million as compared to net income of $775,000 for the fourth quarter of 2000. For the year ended December 31, 2001, the Company reported a net loss of $64.4 million as compared to net income of $836,000 during the year ended December 31, 2000.
The annual results
for 2001 reflect a previously reported asset write-down on "Assets Held-for-Disposal" of approximately $51.1 million, net of taxes, in accordance with FASB 121, "Accounting for the Impairment of Long-lived Assets". This non-cash charge was made to write down certain assets to estimated market value as part of the Board of Directors previously announced plan to separate the Company's LASH (Lighter Aboard SHip
) service, one 1981-built Cape-size Bulk Carrier and certain special purpose barges from the balance of its operations and to reclassify these assets in the Company's balance sheet as "Assets Held-for-Disposal".
Since the second quarter announcement of the Company's intent to dispose of certain of its assets, the Company's above mentioned Cape-Size Bulk Carrier was sold during the third quarter. During the fourth quarter of 2001, LASH assets associated with the Company's Foreign Flag LASH service
were reinstated as assets held for use as a result of extended cargo commitments from a major shipper. Additionally, the carrying value of certain other assets held for disposal were reduced to current market values. The net effect of these transactions was not material. The process of disposing of the remaining LASH assets and the special purpose barges is continuing.
Excluding the aforementioned $51.1 million asset write-down, net loss for the year ended December 31, 2001 was $13.3 million as compared to net income of $836,000 for the year ended December 31, 2000. The major reason for the unfavorable comparisons in 2001 was lower results in the Company's U.S. Flag LASH service caused by unplanned shipyard work early in the year and reduced cargo volume during the second half of the year.