International Shipholding Corporation reported results for the quarter ended September 30, 2001. Net loss for the third quarter was $165,000 as compared to net income of $418,000 for the third quarter of 2000. For the nine months of 2001, International Shipholding Corporation reported a net loss of $62.9 million as compared to net income of 461,000 during the first nine months of 2000.
The nine-month results for 2001 reflect a previously reported asset impairment loss of “Assets Held-for-Disposal” of approximately $51.6 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 Lighter Aboard Ship (LASH) 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 their balance sheet as “Assets Held for Disposal.”
Since the second quarter announcement, International Shipholding Corporation’s intent to dispose of certain of its assets, their Cape-size Bulk Carrier was sold during the third quarter. The process of disposing of the LASH Assets and the special purpose barges is continuing.
Excluding the $51.6 million impairment loss, net loss for the nine months of 2001 was $11.3 million as compared to net income of $61,000 for the nine months of 2000.