General Maritime Corporation Announces Q1 2011 Results
Completes $200 Million Oaktree Investment and Syndication of $550 Million Revolving Credit Facility
Completes $50 million Equity Offering
Takes Delivery of Final Metrostar Vessel
Completes Sale of Four Vessels
NEW YORK, May 10, 2011 /PRNewswire via COMTEX/ --
General Maritime Corporation (NYSE: GMR) today reported its financial results for the three months ended March 31, 2011.
Financial Review: 2011 First Quarter
Excluding the $3.3 million non-cash loss relating to the disposal of vessels and vessel equipment as well as the $1.8 million impairment of goodwill and $0.1 million other income, the Company recorded a net loss of $26.5 million or $0.31 basic and $0.31 diluted loss per share for the three months ended March 31, 2011, compared to net loss of $9.3 million or $0.17 basic and $0.17 diluted loss per share for the three months ended March 31, 2010, excluding $0.2 million in other income and gain in disposal of vessel or vessel equipment from that period. This increased loss was primarily due to a decrease in our net voyage revenue compared to the prior year period, as well as increased direct vessel operating expenses and net interest expense relating to the addition of the seven vessels acquired from Metrostar vessels.
Net loss for the three months ending March 31, 2011 was $31.5 million or $0.36 basic and diluted loss per share compared to a net loss of $9.1 million or $0.16 basic and diluted loss per share from the prior year period.
John P. Tavlarios, President of General Maritime Corporation, commented, "During the first quarter and year-to-date, we took important steps to bolster the Company's future prospects. First, we completed the previously announced refinancing initiatives, strengthening our balance sheet and capital structure. Second, we continued to successfully implement our flexible fleet deployment strategy, positioning the Company to both achieve a level of stability in its results and capitalize on future rate increases. Finally, we completed the seven-vessel Metrostar acquisition enabling the company to expand both the size of our fleet and future earnings potential, while broadening and diversifying our service offerings to customers. In addition, the completion of the acquisition combined with our fleet modernization efforts, enabled General Maritime to reduce the weighted average age of its fleet by approximately two years, while growing overall tonnage capacity by 37 percent."
Net voyage revenue, which is gross voyage revenues minus voyage expenses unique to a specific voyage (including port, canal and fuel costs), decreased by $6.9 million or 10% to $59.0 million for the three months ended March 31, 2011 compared to $65.9 million for the three months ended March 31, 2010. This was primarily due to an increase in voyage expenses from $31.7 million for the three months ending March 31, 2010, to $44.0 million for the three months ending March 31, 2011. This increase in voyage expenses was primarily due to higher bunker costs as well as an increase in percentage of spot market operating days for the first quarter 2011, compared to the prior year period. Excluding the non-cash items mentioned above as well as restricted stock compensation (a non-cash portion of general and administrative expense), EBITDA for the three months ended March 31, 2011 was $20.8 million compared to $34.1 million for the three months ended March 31, 2010. Please see below for a reconciliation of EBITDA to net loss. Net cash provided by operating activities was $24.5 million for the three months ended March 31, 2011 compared to $20.0 million for the prior year period. As of March 31, 2011, the Company's net debt (calculated as total long term debt, including current portion, less cash) was $1,254.5 million.
The average daily time charter equivalent, or TCE, rates obtained by the Company's fleet decreased by 18% to $19,833 per day for the three months ended March 31, 2011 compared to $24,321 for the prior year period. The Company's average daily rates for vessels on spot charters decreased by 24% to $19,673 for the three months ended March 31, 2011 compared to $25,911 for the prior year period.
Daily direct vessel operating expenses increased 6% to $9,244 for the quarter ended March 31, 2011 compared to $8,696 for the prior year period. This increase was primarily due to the growth of the fleet from the prior year period consisting of 5 VLCC and 2 Suezmax vessels which have higher per day costs than the prior fleet average.
General and administrative costs decreased by 10% to $8.8 million for the quarter ended March 31, 2011 compared to $9.7 million for the prior year period. This decrease is primarily due to a reduction in personnel costs which were slightly offset by an increase in professional fees that were incurred during the quarter associated with the sale and sale-leaseback transactions involving seven vessels.