NewLead Holdings Ltd. Announces Financial Results for the Fourth Quarter and Year Ended December 31, 2010
- 69.8% annual fleet growth
- 89.3% increase in quarterly revenue
- 290.3% increase in quarterly adjusted EBITDA to $12.1 million
- 92.1% fleet utilization for Q4 2010
- Increased Goodwill and Shareholders' Equity of $86 million reflected in restated 2009 Financial Statements
PIRAEUS, Greece, April 11, 2011 /PRNewswire/ -- NewLead Holdings Ltd. (NASDAQ: NEWL) ("NewLead" or the "Company"), an international, vertically integrated mixed fleet shipping company, today announced its financial results for the fourth quarter and year ended December 31, 2010.
Michael S. Zolotas, president and CEO of NewLead, stated: "2010 was a successful year for NewLead, illustrated by the Company's remarkable transformation. This turnaround reflects the acquisition of 14 vessels, including five newbuildings, the divestiture of all underperforming vessels, including five non-core product tanker and two container vessels, as well as the integration of commercial and operational management. We worked hard in achieving 70% fleet growth while executing on our restructuring strategy and delivering on our commitments. We continue to be opportunistic and are monitoring market conditions closely to capture opportunities that will support NewLead's further growth."
2010 Accomplishments and Recent Developments
New Time Charters – Coverage
In the second quarter of 2011, two of NewLead's product tankers, the Hiona and the Hiotissa, will enter Scorpio's Handymax Tanker Pool, a competitive tanker pool with more than 30 quality vessels currently participating.
In January 2011, NewLead entered into two new five-year time charter contracts with profit sharing for two product tankers, the Newlead Compass and the Newlead Compassion, for a net daily charter-out rate for each vessel of $11,700 for the first year, $13,650 for the second, third and fourth years, and $15,600 for the fifth year. In addition, during the term of the charters, NewLead will have a profit-sharing interest equal to 50% of the actual earnings up to $26,000 per day and 30% above such amount.
As a result of the above transactions, NewLead expects to have 78% of its operating days covered for 2011, 61% for 2012 and 50% for 2013.
Delivery of One Geared Kamsarmax; the Newlead Tomi
In December 2010, NewLead took delivery of the new 79,224 dwt geared Kamsarmax dry bulk vessel "Newlead Tomi" chartered-out for an initial period of five years at a net daily charter-out rate of $28,710.
Sale and Leaseback Agreement with $86.8 Million in Cash Proceeds
In November 2010, the Company completed the sale and immediate bareboat leaseback transaction of four dry bulk vessels, the Australia, the Brazil, the China and the Grand Rodosi for $86.8 million and for a bareboat leaseback period of eight years.
$62.0 Million New Revolving Credit Facility
NewLead also secured a new revolving credit facility of up to $62.0 million in November 2010. The Company has already utilized part of this credit facility to re-finance several vessels and provide financial flexibility.
Completion of Divestiture of Non-Core Vessels
In September 2010, the Company completed the divestiture of all its non-core vessels, the High Rider, the Chinook, the High Land and the Nordanvind. Total consideration from the sale of the divested vessels, including the two disposed container vessels in January 2010, was $50.0 million.
Fleet Expansion and Newbuildings
During 2010, NewLead completed the acquisition of 14 vessels, including five newbuildings, and two ship management companies, Newlead Shipping S.A. and Newlead Bulkers S.A.. The Company also agreed to acquire one additional dry bulk vessel initially delivered under bareboat charter.
Restatement of Previously Issued Financial Statements
In connection with the reporting of the Company's recapitalization that occurred in October 2009, goodwill resulting from the application of acquisition accounting to the Aries business was recorded directly in shareholders' equity but should have been recorded as Goodwill in our non-current assets. We have corrected this in the consolidated balance sheet and the consolidated statement of shareholders' equity with resulting increases in Goodwill, Total Non-Current Assets, Total Assets, Additional Paid-In Capital and Total Shareholders' Equity of $86,036 as of December 31, 2009. As a result, goodwill increased from zero to $86,036, total non-current assets increased from $277,864 to $363,900, total assets increased from $399,385 to $485,321, additional paid-in capital increased from $110,281 to $196,317 and total shareholders' equity increased from $72,476 to $158,512. This correction had no effect on annual and fourth quarter 2009 Net loss and Net cash provided by operating activities. If 2010 quarterly information previously released by the Company was similarly restated, the only impact would be that the line items for goodwill and shareholders' equity would each be increased by approximately $86 million.
We have filed an amendment to our Annual Report on Form 20-F for the fiscal year ended December 31, 2009 which included fully restated financial statements and intent to file Reports on Form 6-K with respect to our quarterly results during 2010.
Financial Results
Fourth Quarter 2010 Financial Results
NewLead has compiled consolidated statement of operations for the three months ended December 31, 2010 and for the periods from October 1, 2009 to October 13, 2009 and from October 14, 2009 to December 31, 2009. The information was derived from the audited consolidated financial statements of the successor and predecessor business (all financial results subsequent to October 13, 2009 are reflected in the SUCCESSOR business). EBITDA and adjusted EBITDA are non-US GAAP financial measures and should not be used in isolation or substitution for the predecessor and successor results. NewLead reports its operations in two operating segments, "Wet" and "Dry" which include the results of operations for the product tankers and dry bulk vessels, respectively.
(USD in 000s) |
(Unaudited) |
(Audited) |
(Unaudited) |
|||||||||
SUCCESSOR |
SUCCESSOR |
PREDECESSOR |
COMBINED |
|||||||||
Three months ended |
October 14 to |
October 1 to |
Three months ended |
|||||||||
Operating Revenues |
$ |
30,089 |
$ |
14,096 |
$ |
1,830 |
$ |
15,926 |
||||
EBITDA |
$ |
(15,477) |
$ |
(7,261) |
$ |
110 |
$ |
(7,151) |
||||
Adjusted EBITDA |
$ |
12,062 |
(1) |
$ |
2,835 |
(2) |
$ |
314 |
(3) |
$ |
3,149 |
|
Loss from continuing operations |
$ |
(38,697) |
$ |
(35,865) |
$ |
(1,084) |
$ |
(36,949) |
||||
(1) Adjusted EBITDA is EBITDA adjusted further for the following: $23.9 million for impairment losses, $2.7 million non-cash loss on sale from vessels, $0.6 million for share-based compensation expense, $0.2 million provision for claims and $0.1 million provision for doubtful receivables. (2) Adjusted EBITDA is EBITDA adjusted further for the following: $2.6 million non-cash gain in the fair value of derivatives, $7.9 million for share-based compensation expense, $0.2 million for the straight lining of revenue and $4.6 million operating loss for non-core vessels. (3) Adjusted EBITDA is EBITDA adjusted further for the following: $1.6 million non-cash gain in the fair value of derivatives, $0.4 million for share-based compensation expense, $0.3 million provision for claims and $1.1 million operating loss for non-core vessels. |
||||||||||||
For the three month period ended December 31, 2010, operating revenues increased by 89.3% to $30.1 million, compared to $15.9 million for the three month period ended December 31, 2009. The increase in revenue was primarily attributable to the 49.1% growth in our fleet and the corresponding increase in available and operating days of 69.3% and 90.1%, respectively, as well as a 40.3% increase in TCE rates. Furthermore, the revenue and operational growth reflects NewLead's continued fleet expansion strategy and initiatives to bring operational, commercial and technical management capabilities in-house. As a result, there was on average of 17.3 vessels in operation for the three month period ended December 31, 2010, compared to an average of 11.6 vessels for the three month period ended December 31, 2009. For the three month periods ended December 31, 2010 and December 31, 2009, TCE rates were $16,945 per day and $12,077 per day, respectively. This increase reflects the favorable charters attached to the vessels that were incorporated into the fleet, which was partially offset by the decrease in the charter rates of the vessels operating on the spot market, inclusive of voyage expenses.
Fleet utilization, excluding non-core vessels, for the fourth quarter of 2010 was 92.1%, compared to 91.4% for the fourth quarter of 2009. Fleet utilization, excluding non-core vessels, was suppressed by 76 unemployment days attributable mainly to the adverse tanker market conditions and the corresponding decrease in demand, as well as by 48 days of unforeseen dry bulk off-hires. Dry bulk vessels fleet utilization was 94.5% compared to 87.3% for the wet vessels for the fourth quarter of 2010. During the fourth quarter of 2010, 84.8% of the fleet was fixed on time charters, compared to 45.4% during the fourth quarter of 2009.
Adjusted EBITDA increased by 290.3% in the fourth quarter of 2010 to $12.1 million, compared to $3.1 million for the equivalent period of 2009. This growth in adjusted EBITDA was primarily attributable to the increased operational contribution from revenues related to the aforementioned 49.1% operating fleet growth and 16.1% reduction in daily vessel operating expenses relative to the fourth quarter of 2009. Furthermore, dry bulk vessels contributed $10.7 million in adjusted EBITDA in the fourth quarter of 2010 compared to $1.9 million for the period October 14, 2009 to December 31, 2009 when they initially entered NewLead's fleets.
Loss from continuing operations was $38.7 million for the three month period ended December 31, 2010, compared to $36.9 million for the three month period ended December 31, 2009. The results for the fourth quarter of 2010 reflected the higher operating contribution, as previously discussed, but were more than offset by higher non-operating expenses which included interest and non-cash charges, such as depreciation and amortization. Excluding non-cash charges reflected in interest expense, primarily attributable to the $3.6 million amortization of the beneficial conversion feature embedded in the 7.0% convertible senior unsecured notes ("7% Notes") and a $4.3 million gain from the change in the fair value of the Company's interest rate swaps, interest expense was $12.5 million representing a 60.2% increase relative to the fourth quarter of 2009, reflecting $588.7 million of indebtedness for balance sheet purposes as of December 31, 2010, which included, among other items of indebtedness capital lease obligations of $85.0 million and $49.0 million in drawings from a new revolving credit facility, all of which, where entered into during the fourth quarter of 2010. Depreciation and amortization increased by approximately 119.2% to $11.4 million during the three months ended December 31, 2010, compared to $5.2 million during the equivalent period in 2009, reflecting the 49.1% increase in operating fleet growth compared to the prior period, as well as the amortization of intangible assets created as a result of the 2009 recapitalization and the 2010 business and assets acquisitions. In addition, the results for the fourth quarter of 2010 included, an impairment loss of $23.9 million comprising of $18.7 million impairment on goodwill and $5.2 million in charges associated with terminating a MR1 Tanker purchase commitment. Loss for continuing operations also reflected a $2.7 million non-cash loss related to the sale and leaseback of the Australia and Brazil vessels.
Net loss for the fourth quarter of 2010 was $38.3 million, compared to $39.9 million for the fourth quarter of 2009. This loss included a gain from discontinued operations of $0.3 million in 2010 and a loss of $2.9 million in 2009, related to the Company's strategic decision to exit from the container market.
For the three months ended December 31, 2010, the weighted average number of basic and diluted shares was 7.1 million, compared to 5.1 million for the equivalent period of 2009. As such, the loss per share from continuing operations was $5.43, compared to $7.19 for the equivalent period of 2009. These results do not include the earnings per share from discontinued operations of $0.05 for the three month period ended December 31, 2010, and the loss per share of $0.57 for the corresponding period of 2009. For the fourth quarter of 2010, the loss per share (from both continuing and discontinued operations) was $5.38, compared to $7.76 for the fourth quarter of 2009.
Year Ended December 31, 2010 Financial Results
(USD in 000s) |
(Unaudited) |
(Audited) |
(Unaudited) |
|||||||||
SUCCESSOR |
SUCCESSOR |
PREDECESSOR |
COMBINED |
|||||||||
Year ended December 31, 2010 |
October 14 to December 31, 2009 |
January 1 to October 13, 2009 |
Year ended December 31, 2009 |
|||||||||
Operating Revenues |
$ |
102,733 |
$ |
14,096 |
$ |
33,564 |
$ |
47,660 |
||||
EBITDA |
$ |
(13,711) |
$ |
(7,261) |
$ |
(72,716) |
$ |
(79,977) |
||||
Adjusted EBITDA |
$ |
37,548 |
(1) |
$ |
2,835 |
(2) |
$ |
8,552 |
(3) |
$ |
11,387 |
|
Loss from continuing operations |
$ |
(97,618) |
$ |
(35,865) |
$ |
(95,448) |
$ |
(131,313) |
||||
(1) Adjusted EBITDA is EBITDA adjusted further for the following: $39.5 million for impairment losses, $1.6 million non-cash gain in the fair value of derivatives, $1.6 million non-cash loss on sale from vessels, $2.7 million for share-based compensation expense, $0.4 million provision for doubtful receivables, $1.7 million provision for claims, $0.5 million for the straight lining of revenue and $6.5 million operating loss for non-core vessels. (2) Adjusted EBITDA is EBITDA adjusted further for the following: $2.6 million non-cash gain in the fair value of derivatives, $7.9 million for share-based compensation expense, $0.2 million for the straight lining of revenue and $4.6 million operating loss for non-core vessels. (3) Adjusted EBITDA is EBITDA adjusted further for the following: $68.0 million for impairment losses, $3.0 million non-cash gain in the fair value of derivatives, $0.8 million for share-based compensation expense, $0.2 million provision for doubtful receivables, $3.7 million provision for claims and $11.5 million operating loss for non-core vessels. |
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For the year ended December 31, 2010, operating revenues increased 115.3% to $102.7 million, compared to operating revenues of $47.7 million recorded for the year ended December 31, 2009. The increase in revenue was primarily attributable to the 69.8% growth in fleet size and the corresponding increase in available and operating days by 84.0% and 94.2%, respectively, as well as a 21.2% increase in TCE rates. Furthermore, the revenue and operational growth reflects NewLead's initiatives to continue its fleet expansion strategy and bring operational, commercial and technical management capabilities in-house. As a result, the Company had on average of 16.3 vessels in operation for the year period ended December 31, 2010, versus an average of 9.6 vessels in 2009. For the years ended December 31, 2010 and December 31, 2009, TCE rates were $14,942 per day and $12,327 per day, respectively. This increase in TCE rates reflected the favorable charters attached to the vessels that were incorporated into the fleet, which was partially offset by the decrease in the charter rates of the vessels operating on the spot market, inclusive of voyage expenses.
Fleet utilization, excluding non-core vessels, for the year ended December 31, 2010 was 92.9%, compared to 94.9% for the full year 2009. Fleet utilization, excluding non-core vessels, for the year ended December 31, 2010 was suppressed by 259 unemployment days attributable primarily to the adverse tanker market conditions and the corresponding decrease in demand. Moreover, dry bulk vessels' fleet utilization was 96.7% compared to 87.5% for the wet vessels for the full year 2010. During 2010, 72.4% of the fleet was fixed on time charters, compared with 58.2% in 2009.
Adjusted EBITDA increased by 229.8% for the full year 2010 to $37.6 million compared to $11.4 million for the full year 2009. This growth in adjusted EBITDA was primarily attributable to the increased operational contribution in total revenues related to the aforementioned 69.8% operating fleet growth and 26.3% reduction in daily vessel operating expenses relative to the full year 2009. Furthermore, dry bulk vessels contributed $30.0 million in the full year 2010 adjusted EBITDA while during 2009 contributed $1.9 million when they initially entered NewLead's fleet on October 14, 2009 as part of the 2009 recapitalization.
Loss from continuing operations was $97.6 million for the year ended December 31, 2010, and $131.3 million for the year ended December 31, 2009. The results for the year 2010 reflect the higher operating contribution, as previously discussed, but were more than offset by higher non-operating expenses which included interest and non-cash charges, such as depreciation and amortization. Excluding non-cash charges reflected in interest expense, primarily attributable to the $14.4 million amortization of the beneficial conversion feature embedded in the 7% Notes and a $4.0 million gain from the change in the fair value of our interest rate swaps, interest expenses were $34.5 million representing a 92.7% increase, reflecting $588.7 million of indebtedness for balance sheet purposes as of December 31, 2010, which included approximately $298.5 million in new loans assumed and drawdowns during 2010 related to fleet growth and our newbuilding program. Depreciation and amortization was $39.5 million for the year ended December 31, 2010, compared to $16.7 million in 2009, reflecting the 69.8% increase in operating fleet growth, as well as the amortization of the intangible assets created as a result of the 2010 business and assets acquisitions. In addition, the results for the full year 2010 included a $1.6 million non-cash net loss on sale from vessels. During 2010, $39.5 million of impairment charges were recognized in connection with impairment losses on goodwill, divesting the non-core vessels and charges associated with terminating a MR1 Tanker purchase commitment. Loss from continuing operations for the year 2009 included an impairment loss of $68.0 million.
Net loss for the full years ended December 31, 2010 and 2009 was $94.8 million and $163.6 million, respectively. This loss included income from discontinued operations of $2.8 million in 2010, and a loss from discontinued operations of $32.2 million in 2009, which were related to the strategic decision to exit from the container market.
For the year ended December 31, 2010, the weighted average number of basic and diluted shares was approximately 7.0 million, while for the periods January 1, 2009 to October 13, 2009 and October 14, 2009 to December 31, 2009 it was approximately 2.4 million and 5.6 million, respectively. As such, the loss per share from continuing operations was $14.03 for the year ended December 31, 2010, and $39.84 and $6.42 for the periods January 1, 2009 to October 13, 2009 and October 14, 2009 to December 31, 2009, respectively. These results do not include the earnings per share from discontinued operations of $0.40 for the year ended December 31, 2010, and the loss per share of $12.65 and $0.36 for the periods January 1, 2009 to October 13, 2009 and October 14, 2009 to December 31, 2009, respectively. For the full year 2010, the loss per share (from both continuing and discontinued operations) was $13.63, while for the periods January 1, 2009 to October 13, 2009 and October 14, 2009 to December 31, 2009, it was $52.49 and $6.78, respectively.
Balance Sheet
As of December 31, 2010, NewLead's liquidity reflected $110.8 million of total cash ($43.3 million of restricted cash). Total debt, on the balance sheet, as of December 31, 2010 was $588.7 million, compared to $278.7 million at December 31, 2009, representing a $310.0 million increase. The increase was mainly attributable to: (i) $14.4 million amortization of the beneficial conversion feature attributed to the 7% Notes; (ii) the $154.5 million assumption of loans related to the dropdown entities; (iii) the $91.5 million assumption and drawdown of debt related to the acquisition of five dry bulk vessels completed in July 2010; (iv) the $52.5 million assumption and drawdown of debt related to the acquisition of two Kamsarmax newbuildings; (v) the $49.0 million drawdown of the new Marfin revolving facility and (vi) net proceeds of $2.4 million from the sale and leaseback transaction. The overall increase in indebtedness was partially offset by $34.8 million of debt repayments including proceeds generated from the sale of a container vessel, as well as the repayments for terminated loans of $17.7 million and the capital lease payments of $1.8 million.
As of December 31, 2010, there were approximately 7.3 million common shares issued and outstanding.
Fleet Update
NewLead currently controls 22 vessels, including six double-hull product tankers and 16 dry bulk vessels, including four newbuildings.
The following table details NewLead's fleet deployment as of April 11, 2011:
Vessel Name |
Size |
Vessel |
Year |
Charter |
Net Daily Charter |
||||||||||||||
Newlead Compass |
72,934 |
Panamax |
2006 |
Q2 2016 |
(1) |
$11,700 plus 50.0% profit sharing up to $26,000 and 30.0% above such amount |
|||||||||||||
Newlead Compassion |
72,782 |
Panamax |
2006 |
Q2 2016 |
(1) |
$11,700 plus 50.0% profit sharing up to $26,000 and 30.0% above such amount |
|||||||||||||
Newlead Avra |
73,495 |
Panamax |
2004 |
min: February 2012 max: March 2012 |
$13,825 plus 50.0% profit sharing above $14,000 |
||||||||||||||
Newlead Fortune |
73,495 |
Panamax |
2004 |
min: November 2011 max: December 2011 |
$13,825 plus 50.0% profit sharing above $14,000 |
||||||||||||||
Hiotissa |
37,329 |
Handymax |
2004 |
- |
(2) |
Scorpio Handymax Tanker Pool Earnings |
|||||||||||||
Hiona |
37,337 |
Handymax |
2003 |
- |
(2) |
Scorpio Handymax Tanker Pool Earnings |
|||||||||||||
Dry Bulk Vessels |
|||||||||||||||||||
Newlead Tomi |
79,224 |
Kamsarmax |
2010 |
min: September 2015 max: March 2016 |
$28,710 |
(3) |
|||||||||||||
Newlead Prosperity |
34,682 |
Handysize |
2003 |
May 2011 |
$19,475 |
(4) |
|||||||||||||
Newlead Victoria |
75,966 |
Panamax |
2002 |
min: July 2012 max: October 2012 |
Floating rate time charter |
(5) |
|||||||||||||
Brazil (6) |
151,738 |
Capesize |
1995 |
min: December 2013 max: February 2014 |
$28,985 |
(7) |
|||||||||||||
Australia (6) |
172,972 |
Capesize |
1993 |
min: November 2011 max: January 2012 |
$20,391 |
||||||||||||||
China (6) |
135,364 |
Capesize |
1992 |
min: November 2015 max: October 2016 |
$12,753 |
||||||||||||||
Grand Ocean |
149,498 |
Capesize |
1990 |
min: January 2012 max: May 2012 |
(8) |
$19,680 |
|||||||||||||
Grand Venetico |
134,982 |
Capesize |
1990 |
min: June 2012 max: October 2012 |
(9) |
$17,760 |
|||||||||||||
Grand Rodosi (6) |
68,788 |
Panamax |
1990 |
May 2011 |
$11,250 |
||||||||||||||
Newlead Markela |
71,733 |
Panamax |
1990 |
min: February 2013 max: June 2013 |
$21,972 |
||||||||||||||
Newlead Esmeralda |
69,458 |
Panamax |
1990 |
min: August 2011 max: November 2011 |
$17,953 |
||||||||||||||
Newlead Spartounta |
135,070 |
Capesize |
1989 |
Spot |
|||||||||||||||
Expected |
|||||||||||||||||||
Newbuildings |
Size (dwt) |
Vessel |
Delivery |
Charter term |
Charter Rate |
||||||||||||||
Newlead TBN |
35,000 |
Handysize |
Q2 2011 |
Twelve years +/- 4 months |
$12,000 plus 40.0% profit sharing above $14,000 |
(10) |
|||||||||||||
Newlead TBN |
92,000 |
Post-Panamax |
Q2 2011 |
Seven year time charter |
$14,438 plus 50.0% profit sharing |
(11) |
|||||||||||||
Newlead TBN |
80,000 |
Kamsarmax |
Q4 2011 |
Seven year time charter |
$27,300 |
||||||||||||||
Newlead TBN |
35,000 |
Handysize |
Q3 2012 |
Twelve years +/- 4 months |
$12,000 plus 40.0% profit sharing above $14,000 |
(10) |
|||||||||||||
(1) The time charter is expected to commence during Q2 2011. The net daily charter-out rate is $11,700 for the first year, $13,650 for the second, third and fourth year and $15,600 for the fifth year plus 50.0% profit-sharing on the actual earnings up to $26,000 per day and 30% above such amount. |
|
(2) The vessel is expected to enter the Scorpio Handymax Tanker Pool in Q2 2011. |
|
(3) $28,710 five year time charter, plus charterer's option for one year plus one additional year. The vessel owners have a put option for a second two-year charter at a net charter rate between $19,800 and $28,710 per day. The second charter is subject to the first charterer not exercising the optional years. The first and second charter secure a total charter duration of seven years for the vessel. |
|
(4) The vessel was bareboat chartered-in during Q4 2010 initially until March 15, 2011 with an obligation to conclude the purchase by the end of the charter period at the latest. By an addendum signed March 11, 2011 the parties agreed to extent the charter period until April 8, 2011. |
|
(5) The vessel owner shall have the right for an earlier redelivery of the vessel at any time within charter duration; subject to vessel owner's tendering to charterer three months' advance notice. |
|
(6) This vessel was sold and leased back to the Company on a bareboat charter for a period of eight years. |
|
(7) $28,985 per day for the first three years and $26,180 per day thereafter, plus 50.0% profit sharing above $26,600. |
|
(8) Charterer's option to extend for one additional year. |
|
(9) Charterer's option to extend for six additional months. |
|
(10) Base rate is $12,000 per day. Above a rate of $14,000 per day, profit sharing is 40.0% based on open book accounting on actual earnings. Charterers have a 50.0% purchase option. |
|
(11) Charterer's option for one year and one additional year. Hire rate for first optional year is $15,400 (net) per day plus 50.0% profit sharing. Hire rate for second optional year is $16,844 per day (net) plus 50.0% profit sharing. |
|
Summary of Selected Data |
|||
(Unaudited) |
|||
Three months ended |
|||
December 31, |
|||
2010 |
2009 |
||
FLEET DATA |
|||
Number of vessels |
17.3 |
11.6 |
|
Number of vessels on time charter |
14.5 |
4.6 |
|
Weighted average age of fleet |
12.8 |
10.9 |
|
Available days (1) |
1,571 |
928 |
|
Operating days (2) |
1,447 |
761 |
|
Fleet utilization excluding non-core vessels (3) |
92.1% |
91.4% |
|
Fleet utilization dry segment (3) |
94.5% |
97.3% |
|
Fleet utilization wet segment excluding non-core vessels (3) |
87.3% |
87.5% |
|
Equivalent vessels (4) |
17.1 |
10.1 |
|
AVERAGE DAILY RESULTS |
|||
Time Charter Equivalents (5) |
$16,945 |
$12,077 |
|
Direct Daily Vessel Operating Expenses (6) |
$7,267 |
$8,659 |
|
(Unaudited) |
|||
Year ended |
|||
December 31, |
|||
2010 |
2009 |
||
FLEET DATA |
|||
Number of vessels |
16.3 |
9.6 |
|
Number of vessels on time charter |
11.4 |
5.0 |
|
Weighted average age of fleet |
12.8 |
10.9 |
|
Available days (1) |
5,722 |
3,109 |
|
Operating days (2) |
4,963 |
2,556 |
|
Fleet utilization excluding non-core vessels (3) |
92.9% |
94.9% |
|
Fleet utilization dry segment (3) |
96.7% |
97.5% |
|
Fleet utilization wet segment excluding non-core vessels (3) |
87.5% |
94.5% |
|
Equivalent vessels (4) |
15.7 |
8.5 |
|
AVERAGE DAILY RESULTS |
|||
Time Charter Equivalents (5) |
$14,942 |
$12,327 |
|
Direct Daily Vessel Operating Expenses (6) |
$7,091 |
$9,624 |
|
(1) Available days is the total number of days a vessel is controlled by a company less the aggregate number of days that the vessel is off-hire due to scheduled repairs or repairs under guarantee, vessel upgrades or special surveys. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenues. |
||
(2) Operating days is the number of available days in a period less the aggregate number of days that the vessels are off-hire due to any reason, including lack of demand or unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues. |
||
(3) Fleet utilization is obtained by dividing the number of operating days during a period by the number of available days during the period. The shipping industry uses fleet utilization to measure a company's efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons other than scheduled repairs or repairs under guarantee, vessel upgrades, special surveys or vessel positioning. |
||
(4) Equivalent vessels data is the available days of the fleet divided by the number of the calendar days in the respective period. |
||
(5) Time Charter Equivalent, or TCE, rates are defined as voyage, time charter and bareboat revenues, less voyage expenses and commissions during a period, divided by the number of available days during the period. The TCE rate is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed in per day amounts, while charter hire rates for vessels on time charters generally are expressed in such amounts. The Newlead Compass was employed on bareboat charter during 2010 until December 20, 2010 and during the year ended December 31, 2009. The Newlead Compassion was employed on bareboat charter up to June 10, 2010 and during the year ended December 31, 2009. Accordingly, the Newlead Compass and the Newlead Compassion's charter rates have been grossed up to reflect a TCE rate of approximately $24,933 per day, assuming operating costs of $6,700 per day, for the years ended December 31, 2010 and 2009, as applicable. |
||
(6) Direct daily vessel operating expenses are defined as the sum of the vessel operating expenses, excluding provision for claims, and management fees, divided by the vessels calendar days. This has been adjusted to exclude the calendar days with respect to the Newlead Compass and the Newlead Compassion, during their employment on bareboat charters. |
||
Conference Call and Webcast
NewLead will hold a conference call today, April 11, 2011 at 4:30PM EDT to discuss highlights and details of the fourth quarter 2010 financial results.
To access the conference call participants should dial +1 (888) 285-0969 (US/Canada) or +1 (706) 758-6357 (international) at 4:15PM EDT and request the NewLead Holdings Ltd. Fourth Quarter 2010 Earnings Call or Conference ID #59389831.
Following the teleconference, a replay of the call may be accessed by dialing +1 (800) 642-1687 (US/Canada) or +1 (706) 645-9291 (international). The conference ID is 59389831. The recording will be available from April 11, 2011 at 8:00PM EDT through April 18, 2011 at 11:59PM EDT.
The conference call will also be broadcast live over the Internet. To access the live webcast, please go to the Investor Information tab on the Company's website: http://www.newleadholdings.com.
NewLead will be publishing a supplemental slide presentation which will also be available on the Company's website on the day of the call.
About NewLead Holdings Ltd.
NewLead Holdings Ltd. is an international, vertically integrated shipping company that owns and manages product tankers and dry bulk vessels. NewLead currently controls 22 vessels, including six double-hull product tankers and 16 dry bulk vessels of which four are newbuildings. NewLead's common shares are traded under the symbol "NEWL" on the NASDAQ Global Select Market. To learn more about NewLead Holdings Ltd., please visit the new website at www.newleadholdings.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
This press release includes assumptions, expectations, projections, intentions and beliefs about future events. These statements, as well as words such as "anticipate," "estimate," "project," "plan," and "expect," are intended to be ''forward-looking" statements. We caution that assumptions, expectations, projections, intentions and beliefs about future events may vary from actual results and the differences can be material. Forward-looking statements include, but are not limited to, such matters as future operating or financial results; statements about planned, pending or recent acquisitions and business strategy. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although NewLead believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, NewLead cannot assure you that it will achieve or accomplish these expectations, beliefs or projections described in the forward looking statements. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter rates and vessel values, failure of a seller to deliver one or more vessels, and other factors discussed in NewLead's filings with the U.S. Securities and Exchange Commission from time to time. NewLead expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in NewLead's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Investor Contact: |
Media Contact: |
|
Sarah Freeman |
Elisa Gerouki |
|
CJP Communications |
NewLead Holdings Ltd. |
|
+1 (212) 279 3115 x244 |
+ 30 (213) 014 8023 |
|
NEWLEAD HOLDINGS LTD. |
||||||
CONSOLIDATED BALANCE SHEETS |
||||||
(All amounts expressed in thousands of U.S. dollars except share amounts) |
||||||
(Unaudited) |
(Audited) |
|||||
As of |
As of |
|||||
2010 |
2009 |
|||||
(Restated) |
||||||
ASSETS |
||||||
Current assets |
||||||
Cash and cash equivalents |
$ |
67,531 |
$ |
106,255 |
||
Restricted cash |
12,606 |
403 |
||||
Trade receivables, net |
6,025 |
4,572 |
||||
Other receivables |
2,433 |
496 |
||||
Due from related parties |
- |
40 |
||||
Inventories |
2,986 |
3,085 |
||||
Prepaid expenses |
1,909 |
1,082 |
||||
Due from managing agents |
587 |
8 |
||||
Backlog asset |
8,492 |
5,528 |
||||
Total current assets |
102,569 |
121,469 |
||||
Restricted cash |
30,700 |
9,668 |
||||
Vessels under construction |
32,253 |
- |
||||
Assets held for sale |
- |
8,250 |
||||
Vessels and other fixed assets, net |
455,416 |
253,115 |
||||
Goodwill |
81,590 |
86,036 |
||||
Backlog asset |
46,165 |
- |
||||
Deferred charges, net |
13,040 |
6,831 |
||||
Total non-current assets |
659,164 |
363,900 |
||||
Total assets |
$ |
761,733 |
$ |
485,369 |
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||
Current liabilities |
||||||
Current portion of long-term debt |
$ |
26,773 |
$ |
14,240 |
||
Accounts payable, trade |
47,912 |
11,048 |
||||
Accrued liabilities |
17,370 |
16,957 |
||||
Capital lease obligations |
7,648 |
- |
||||
Deferred charter revenue |
476 |
- |
||||
Deferred income |
880 |
226 |
||||
Derivative financial instruments |
5,319 |
9,687 |
||||
Due to related parties |
- |
234 |
||||
Due to managing agent |
282 |
1,868 |
||||
Total current liabilities |
106,660 |
54,260 |
||||
Non-current liabilities |
||||||
Derivative financial instruments |
4,642 |
7,407 |
||||
Senior convertible 7% notes, net |
55,877 |
41,430 |
||||
Capital lease obligations |
77,319 |
- |
||||
Unearned profit |
10,399 |
- |
||||
Deferred charter revenue |
91 |
- |
||||
Deferred income |
1,325 |
730 |
||||
Other non-current liabilities |
8,744 |
- |
||||
Long-term debt |
421,042 |
223,030 |
||||
Total non-current liabilities |
579,439 |
272,597 |
||||
Total liabilities |
686,099 |
326,857 |
||||
Commitments and contingencies |
||||||
Shareholders' equity |
||||||
Preference Shares, $0.01 par value, |
- |
- |
||||
Common Shares, $0.01 par value, 1 billion |
74 |
67 |
||||
Additional paid-in capital |
208,281 |
196,317 |
||||
Accumulated deficit |
(132,721) |
(37,872) |
||||
Total shareholders' equity |
75,634 |
158,512 |
||||
Total liabilities and shareholders' equity |
$ |
761,733 |
$ |
485,369 |
||
NEWLEAD HOLDINGS LTD. |
|||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||
FOR THE THREE MONTHS ENDED DECEMBER 31, 2010 AND 2009 |
|||||||||||
(All amounts expressed in thousands of U.S. dollars except share and per share amounts) |
|||||||||||
Successor |
Combined |
Successor |
Predecessor |
||||||||
Three months ended December 31, |
Three months ended December 31, |
October 14, to December 31, |
October 1, to October 13, |
||||||||
2010 |
2009 |
2009 |
2009 |
||||||||
(Unaudited) |
(Unaudited) |
(Audited) |
(Unaudited) |
||||||||
OPERATING REVENUES |
$ |
30,089 |
$ |
15,926 |
$ |
14,096 |
$ |
1,830 |
|||
EXPENSES: |
|||||||||||
Commissions |
(551) |
(522) |
(407) |
(115) |
|||||||
Voyage expenses |
(3,487) |
(5,587) |
(4,634) |
(953) |
|||||||
Vessel operating expenses |
(11,160) |
(7,915) |
(6,530) |
(1,385) |
|||||||
General and administrative expenses |
(3,788) |
(12,936) |
(12,025) |
(911) |
|||||||
Depreciation and amortization expenses |
(11,425) |
(5,245) |
(4,844) |
(401) |
|||||||
Impairment losses |
(23,853) |
- |
- |
- |
|||||||
Management fees |
- |
(362) |
(315) |
(47) |
|||||||
(54,264) |
(32,567) |
(28,755) |
(3,812) |
||||||||
Net operating loss from continuing operations |
(24,175) |
(16,641) |
(14,659) |
(1,982) |
|||||||
OTHER (EXPENSES) / INCOME, NET: |
|||||||||||
Interest and finance expense |
(11,827) |
(24,789) |
(23,996) |
(793) |
|||||||
Interest income |
32 |
236 |
236 |
- |
|||||||
Loss on sale from vessels, net |
(2,728) |
- |
- |
- |
|||||||
Other (expense) / income, net |
1 |
64 |
- |
64 |
|||||||
Change in fair value of derivatives |
- |
4,181 |
2,554 |
1,627 |
|||||||
Total other expenses, net |
(14,522) |
(20,308) |
(21,206) |
898 |
|||||||
Loss from continuing operations |
(38,697) |
(36,949) |
(35,865) |
(1,084) |
|||||||
Income / (loss) from discontinued operations |
346 |
(2,926) |
(2,007) |
(919) |
|||||||
Net loss |
$ |
(38,351) |
$ |
(39,875) |
$ |
(37,872) |
$ |
(2,003) |
|||
(Loss) / income per share: |
|||||||||||
Basic and diluted |
|||||||||||
Continuing operations |
$ |
(5.43) |
$ |
(7.19) |
$ |
(6.42) |
$ |
(0.45) |
|||
Discontinued operations |
$ |
0.05 |
$ |
(0.57) |
$ |
(0.36) |
$ |
(0.38) |
|||
Total |
$ |
(5.38) |
$ |
(7.76) |
$ |
(6.78) |
$ |
(0.83) |
|||
Weighted average number of shares: |
|||||||||||
Basic and diluted |
7,134,184 |
5,138,289 |
5,588,937 |
2,400,797 |
|||||||
NEWLEAD HOLDINGS LTD. |
||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||
FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 |
||||||||||
(All amounts expressed in thousands of U.S. dollars except share and per share amounts) |
||||||||||
Successor |
Combined |
Successor |
Predecessor |
|||||||
Year Ended December 31, |
Year Ended December 31, |
October 14, to December 31, |
January 1, to October 13, |
|||||||
2010 |
2009 |
2009 |
2009 |
|||||||
(Unaudited) |
(Unaudited) |
(Audited) |
(Audited) |
|||||||
OPERATING REVENUES |
$ |
102,733 |
$ |
47,660 |
$ |
14,096 |
$ |
33,564 |
||
EXPENSES: |
||||||||||
Commissions |
(2,345) |
(1,176) |
(407) |
(769) |
||||||
Voyage expenses |
(18,793) |
(13,208) |
(4,634) |
(8,574) |
||||||
Vessel operating expenses |
(39,219) |
(29,211) |
(6,530) |
(22,681) |
||||||
General and administrative expenses |
(15,592) |
(20,391) |
(12,025) |
(8,366) |
||||||
Depreciation and amortization expenses |
(39,558) |
(16,657) |
(4,844) |
(11,813) |
||||||
Impairment losses |
(39,515) |
(68,042) |
- |
(68,042) |
||||||
Management fees |
(1,007) |
(1,215) |
(315) |
(900) |
||||||
(156,029) |
(149,900) |
(28,755) |
(121,145) |
|||||||
Net operating loss from continuing operations |
(53,296) |
(102,240) |
(14,659) |
(87,581) |
||||||
OTHER (EXPENSES) / INCOME, NET: |
||||||||||
Interest and finance expense |
(44,899) |
(34,924) |
(23,996) |
(10,928) |
||||||
Interest income |
550 |
245 |
236 |
9 |
||||||
Loss on sale from vessels, net |
(1,560) |
- |
- |
- |
||||||
Other (expense) / income, net |
(5) |
40 |
- |
40 |
||||||
Change in fair value of derivatives |
1,592 |
5,566 |
2,554 |
3,012 |
||||||
Total other expenses, net |
(44,322) |
(29,073) |
(21,206) |
(7,867) |
||||||
Loss from continuing operations |
(97,618) |
(131,313) |
(35,865) |
(95,448) |
||||||
Income / (loss) from discontinued operations |
2,769 |
(32,323) |
(2,007) |
(30,316) |
||||||
Net loss |
$ |
(94,849) |
$ |
(163,636) |
$ |
(37,872) |
$ |
(125,764) |
||
(Loss) / income per share: |
||||||||||
Basic and diluted |
||||||||||
Continuing operations |
$ |
(14.03) |
(42.54) |
$ |
(6.42) |
$ |
(39.84) |
|||
Discontinued operations |
$ |
0.40 |
(10.47) |
$ |
(0.36) |
$ |
(12.65) |
|||
Total |
$ |
(13.63) |
(53.01) |
$ |
(6.78) |
$ |
(52.49) |
|||
Weighted average number of shares: |
||||||||||
Basic and diluted |
6,958,903 |
3,086,905 |
5,588,937 |
2,395,858 |
||||||
NEWLEAD HOLDINGS LTD. |
|||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||
(All amounts expressed in thousands of U.S. dollars) |
|||||||||
Successor |
Predecessor |
||||||||
Year Ended December 31, |
October 14, to December 31, |
January 1, to October 13, |
|||||||
2010 |
2009 |
2009 |
|||||||
(Unaudited) |
(Audited) |
(Audited) |
|||||||
OPERATING ACTIVITIES: |
|||||||||
Net loss |
$ |
(94,849) |
$ |
(37,872) |
$ |
(125,764) |
|||
Adjustments to reconcile net loss to net cash used in operating activities: |
|||||||||
Depreciation and amortization |
30,028 |
3,656 |
17,368 |
||||||
Impairment losses |
39,515 |
- |
91,601 |
||||||
Provision for doubtful receivables |
316 |
- |
292 |
||||||
Amortization and write-off of deferred financing costs |
3,728 |
1,391 |
555 |
||||||
Amortization of deferred charter revenue |
(3,194) |
- |
(1,694) |
||||||
Amortization of backlog asset |
13,890 |
1,992 |
- |
||||||
Amortization of the beneficial conversion feature |
14,442 |
17,000 |
- |
||||||
Change in fair value of derivative financial instruments |
(8,449) |
(2,554) |
(3,012) |
||||||
Payments for dry-docking / special survey costs |
(3,548) |
(1,040) |
(4,306) |
||||||
Share-based compensation |
2,680 |
3,958 |
793 |
||||||
Warrants compensation expense |
- |
3,940 |
- |
||||||
Loss / (gain) on sale from vessels |
(938) |
- |
5,584 |
||||||
(Increase) decrease in: |
|||||||||
Trade receivables |
(927) |
(783) |
(1,480) |
||||||
Other receivables |
576 |
89 |
1,704 |
||||||
Inventories |
617 |
(110) |
(1,489) |
||||||
Prepaid expenses |
700 |
20 |
(135) |
||||||
Due from/to managing agent |
(2,712) |
455 |
1,759 |
||||||
Due from/to related parties |
(683) |
- |
49 |
||||||
Increase (decrease) in: |
|||||||||
Accounts payable, trade |
(708) |
991 |
6,546 |
||||||
Accrued liabilities |
(938) |
4,571 |
2,206 |
||||||
Deferred income |
769 |
(1,573) |
(1,134) |
||||||
Net cash (used in) / provided by operating activities |
(9,685) |
(5,869) |
(10,557) |
||||||
INVESTING ACTIVITIES: |
|||||||||
Vessel acquisitions |
(1,601) |
||||||||
Vessels under construction |
(45,126) |
- |
- |
||||||
Advances for vessel acquisitions |
(3,177) |
- |
- |
||||||
Restricted cash |
(11,033) |
- |
- |
||||||
Cash acquired through business acquisition, net of cash paid |
1,561 |
- |
- |
||||||
Other fixed asset acquisitions |
(76) |
- |
(63) |
||||||
Proceeds from the sale of vessels |
37,263 |
- |
2,279 |
||||||
Net cash (used in) / provided by investing activities |
(22,189) |
- |
2,216 |
||||||
FINANCING ACTIVITIES: |
|||||||||
Principal repayments of long-term debt |
(482,243) |
(57,400) |
(2,280) |
||||||
Proceeds from long-term debt |
419,445 |
35,840 |
- |
||||||
Proceeds from senior convertible 7% notes, net |
- |
140,718 |
- |
||||||
Restricted cash for debt repayment |
(21,038) |
(8,173) |
6,612 |
||||||
Proceeds from the sale and leaseback of vessels |
86,800 |
- |
- |
||||||
Capital lease payments |
(1,833) |
- |
- |
||||||
Payments for deferred charges |
(7,982) |
- |
- |
||||||
Shareholders contribution |
- |
1,139 |
- |
||||||
Proceeds from issuance of common shares |
1 |
- |
- |
||||||
Dividends paid |
- |
- |
- |
||||||
Net cash (used in) / provided by financing activities |
(6,850) |
112,124 |
4,332 |
||||||
Net (decrease) / increase in cash and cash equivalents |
(38,724) |
106,255 |
(4,009) |
||||||
Beginning of year / period |
106,255 |
- |
4,009 |
||||||
End of year / period |
$ |
67,531 |
$ |
106,255 |
$ |
- |
|||
Supplemental Cash Flow information: |
|||||||||
Interest paid |
$ |
23,734 |
$ |
663 |
$ |
13,140 |
|||
Issuance of common shares for business combination |
$ |
5,210 |
- |
- |
|||||
Issuance of warrants for deferred charges |
$ |
956 |
- |
- |
|||||
Assets disposed in connection with assumed acquisitions |
$ |
8,501 |
- |
- |
|||||
Acquired advances for vessels under construction |
$ |
29,315 |
- |
- |
|||||
Vessels and other fixed assets, net |
$ |
81,110 |
- |
- |
|||||
Long-term debt |
$ |
86,368 |
- |
- |
|||||
Acquired other assets / liabilities, net |
$ |
40,098 |
- |
- |
|||||
Assets acquired and liabilities assumed under business acquisitions: |
|||||||||
- Vessels and other fixed assets, net |
$ |
143,808 |
- |
- |
|||||
- Long-term debt |
$ |
154,475 |
- |
- |
|||||
- Other assets and liabilities, net |
$ |
36 |
- |
- |
|||||
NEWLEAD HOLDINGS LTD. |
||||||||||||||||||||||||||||
FOURTH QUARTER RESULTS BY SEGMENT |
||||||||||||||||||||||||||||
(All amounts expressed in thousands of U.S. dollars) |
||||||||||||||||||||||||||||
Wet |
Dry |
|||||||||||||||||||||||||||
Successor |
Predecessor |
Combined |
Successor |
Predecessor |
Combined |
|||||||||||||||||||||||
Three months ended December 31, |
October 14, to December 31, |
October 1, to October 13, |
Three months ended December 31, |
Three months ended December 31, |
October 14, to December 31, |
October 1, to October 13, |
Three months ended December 31, |
|||||||||||||||||||||
2010 |
2009 |
2009 |
2009 |
2010 |
2009 |
2009 |
2009 |
|||||||||||||||||||||
(Unaudited) |
(Audited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Audited) |
(Unaudited) |
(Unaudited) |
|||||||||||||||||||||
Operating revenue |
$ |
9,141 |
$ |
9,201 |
$ |
1,830 |
$ |
11,031 |
$ |
20,982 |
$ |
4,895 |
$ |
- |
$ |
4,895 |
||||||||||||
Commissions |
(175) |
(292) |
(115) |
(407) |
(376) |
(115) |
- |
(115) |
||||||||||||||||||||
Voyage expenses |
(2,795) |
(4,548) |
(953) |
(5,501) |
(692) |
(86) |
- |
(86) |
||||||||||||||||||||
Vessel operating expenses |
(3,758) |
(4,694) |
(1,385) |
(6,079) |
(7,402) |
(1,836) |
- |
(1,836) |
||||||||||||||||||||
General and administrative expenses |
(1,075) |
(1,766) |
(235) |
(2,001) |
(1,964) |
(540) |
- |
(540) |
||||||||||||||||||||
Management fees |
- |
(194) |
(47) |
(241) |
- |
(121) |
- |
(121) |
||||||||||||||||||||
Other income/expense, net |
2 |
- |
64 |
64 |
(1) |
- |
- |
- |
||||||||||||||||||||
Net operating (loss) / income before depreciation and amortization |
1,340 |
(2,293) |
(841) |
(3,134) |
10,547 |
2,197 |
- |
2,197 |
||||||||||||||||||||
Depreciation and amortization expense |
(4,185) |
(2,989) |
(401) |
(3,390) |
(7,240) |
(1,855) |
- |
(1,855) |
||||||||||||||||||||
Impairment losses |
(23,853) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||
Net operating (loss) / income |
(26,698) |
(5,282) |
(1,242) |
(6,524) |
3,307 |
342 |
- |
342 |
||||||||||||||||||||
Transaction costs |
- |
(6,702) |
(890) |
(7,592) |
- |
(2,234) |
- |
(2,234) |
||||||||||||||||||||
Straight line revenue |
- |
- |
- |
- |
(34) |
- |
- |
- |
||||||||||||||||||||
Compensation costs |
(226) |
(587) |
(1) |
(588) |
(426) |
(196) |
- |
(196) |
||||||||||||||||||||
Provision for doubtful receivables |
42 |
- |
215 |
215 |
(139) |
- |
- |
- |
||||||||||||||||||||
Gain on sale from vessels |
- |
- |
- |
- |
(2,728) |
- |
- |
- |
||||||||||||||||||||
Interest and finance expense, net |
(4,749) |
(18,372) |
(793) |
(19,165) |
(7,078) |
(5,624) |
- |
(5,624) |
||||||||||||||||||||
Interest income |
6 |
177 |
- |
177 |
26 |
59 |
- |
59 |
||||||||||||||||||||
Change in fair value of derivatives |
- |
1,537 |
1,627 |
3,164 |
- |
1,017 |
- |
1,017 |
||||||||||||||||||||
Loss from continuing operations |
$ |
(31,625) |
$ |
(29,229) |
$ |
(1,084) |
$ |
(30,313) |
$ |
(7,072) |
$ |
(6,636) |
$ |
- |
$ |
(6,636) |
||||||||||||
NEWLEAD HOLDINGS LTD. |
|||||||||||||
FOURTH QUARTER RESULTS BY SEGMENT |
|||||||||||||
(All amounts expressed in thousands of U.S. dollars) |
|||||||||||||
Total |
|||||||||||||
Successor |
Predecessor |
Combined |
|||||||||||
Three months ended December 31, |
October 14, to December 31, |
October 1, to October 13, |
Three months ended December 31, |
||||||||||
2010 |
2009 |
2009 |
2009 |
||||||||||
(Unaudited) |
(Audited) |
(Unaudited) |
(Unaudited) |
||||||||||
Operating revenue |
$ |
30,123 |
$ |
14,096 |
$ |
1,830 |
$ |
15,926 |
|||||
Commissions |
(551) |
(407) |
(115) |
(522) |
|||||||||
Voyage expenses |
(3,487) |
(4,634) |
(953) |
(5,587) |
|||||||||
Vessel operating expenses |
(11,160) |
(6,530) |
(1,385) |
(7,915) |
|||||||||
General and administrative expenses |
(3,039) |
(2,306) |
(235) |
(2,541) |
|||||||||
Management fees |
- |
(315) |
(47) |
(362) |
|||||||||
Other income/expense, net |
1 |
- |
64 |
64 |
|||||||||
Net operating (loss) / income before depreciation and amortization |
11,887 |
(96) |
(841) |
(937) |
|||||||||
Depreciation and amortization expense |
(11,425) |
(4,844) |
(401) |
(5,245) |
|||||||||
Impairment losses |
(23,853) |
- |
- |
- |
|||||||||
Net operating (loss) / income |
(23,391) |
(4,940) |
(1,242) |
(6,182) |
|||||||||
Transaction costs |
- |
(8,936) |
(890) |
(9,826) |
|||||||||
Straight line revenue |
(34) |
- |
- |
- |
|||||||||
Compensation costs |
(652) |
(783) |
(1) |
(784) |
|||||||||
Provision for doubtful receivables |
(97) |
- |
215 |
215 |
|||||||||
Gain on sale from vessels |
(2,728) |
- |
- |
- |
|||||||||
Interest and finance expense, net |
(11,827) |
(23,996) |
(793) |
(24,789) |
|||||||||
Interest income |
32 |
236 |
- |
236 |
|||||||||
Change in fair value of derivatives |
- |
2,554 |
1,627 |
4,181 |
|||||||||
Loss from continuing operations |
$ |
(38,697) |
$ |
(35,865) |
$ |
(1,084) |
$ |
(36,949) |
|||||
NEWLEAD HOLDINGS LTD. |
|||||||||||||||||||||||||||
YEAR END RESULTS BY SEGMENT |
|||||||||||||||||||||||||||
(All amounts expressed in thousands of U.S. dollars) |
|||||||||||||||||||||||||||
Wet |
Dry |
||||||||||||||||||||||||||
Successor |
Predecessor |
Combined |
Successor |
Predecessor |
Combined |
||||||||||||||||||||||
Year Ended December 31, |
October 14, to December 31, |
January 1, to October 13, |
Year ended December 31, |
Year Ended December 31, |
October 14, to December 31, |
January 1, to October 13, |
Year ended December 31, |
||||||||||||||||||||
2010 |
2009 |
2009 |
2009 |
2010 |
2009 |
2009 |
2009 |
||||||||||||||||||||
(Unaudited) |
(Audited) |
(Audited) |
(Unaudited) |
(Unaudited) |
(Audited) |
(Audited) |
(Unaudited) |
||||||||||||||||||||
Operating revenue |
$ |
45,601 |
$ |
9,201 |
$ |
33,564 |
$ |
42,765 |
$ |
57,599 |
$ |
4,895 |
$ |
- |
$ |
4,895 |
|||||||||||
- |
|||||||||||||||||||||||||||
Commissions |
(1,268) |
(292) |
(769) |
(1,061) |
(1,077) |
(115) |
- |
(115) |
|||||||||||||||||||
Voyage expenses |
(17,495) |
(4,548) |
(8,574) |
(13,122) |
(1,298) |
(86) |
- |
(86) |
|||||||||||||||||||
Vessel operating expenses |
(18,046) |
(4,694) |
(22,681) |
(27,375) |
(21,173) |
(1,836) |
- |
(1,836) |
|||||||||||||||||||
General and administrative expenses |
(6,045) |
(1,766) |
(4,553) |
(6,319) |
(5,136) |
(540) |
- |
(540) |
|||||||||||||||||||
Management fees |
(829) |
(194) |
(900) |
(1,094) |
(178) |
(121) |
- |
(121) |
|||||||||||||||||||
Other income/expense, net |
2 |
- |
40 |
40 |
(7) |
- |
- |
- |
|||||||||||||||||||
Net operating (loss) / income before depreciation and amortization |
1,920 |
(2,293) |
(3,873) |
(6,166) |
28,730 |
2,197 |
- |
2,197 |
|||||||||||||||||||
Depreciation and amortization expense |
(18,992) |
(2,989) |
(11,813) |
(14,802) |
(20,566) |
(1,855) |
- |
(1,855) |
|||||||||||||||||||
Impairment losses |
(39,515) |
- |
(68,042) |
(68,042) |
- |
- |
- |
- |
|||||||||||||||||||
Net operating (loss) / income |
(56,587) |
(5,282) |
(83,728) |
(89,010) |
8,164 |
342 |
- |
342 |
|||||||||||||||||||
Transaction costs |
(931) |
(6,702) |
(3,442) |
(10,144) |
(409) |
(2,234) |
- |
(2,234) |
|||||||||||||||||||
Straight line revenue |
- |
- |
- |
- |
(467) |
- |
- |
- |
|||||||||||||||||||
Compensation costs |
(1,444) |
(587) |
(371) |
(958) |
(1,236) |
(196) |
- |
(196) |
|||||||||||||||||||
Provision for doubtful receivables |
(204) |
- |
- |
- |
(187) |
- |
- |
- |
|||||||||||||||||||
Gain on sale from vessels |
1,168 |
- |
- |
- |
(2,728) |
- |
- |
- |
|||||||||||||||||||
Interest and finance expense, net |
(22,939) |
(18,372) |
(10,928) |
(29,300) |
(21,960) |
(5,624) |
- |
(5,624) |
|||||||||||||||||||
Interest income |
336 |
177 |
9 |
186 |
214 |
59 |
- |
59 |
|||||||||||||||||||
Change in fair value of derivatives |
1,179 |
1,537 |
3,012 |
4,549 |
413 |
1,017 |
- |
1,017 |
|||||||||||||||||||
Loss from continuing operations |
$ |
(79,422) |
$ |
(29,229) |
$ |
(95,448) |
$ |
(124,677) |
$ |
(18,196) |
$ |
(6,636) |
$ |
- |
$ |
(6,636) |
|||||||||||
NEWLEAD HOLDINGS LTD. |
|||||||||||||||
YEAR END RESULTS BY SEGMENT |
|||||||||||||||
(All amounts expressed in thousands of U.S. dollars) |
|||||||||||||||
Total |
|||||||||||||||
Successor |
Predecessor |
Combined |
|||||||||||||
Year Ended December 31, |
October 14, to December 31, |
January 1, to October 13, |
Year ended December 31, |
||||||||||||
2010 |
2009 |
2009 |
2009 |
||||||||||||
(Unaudited) |
(Audited) |
(Audited) |
(Unaudited) |
||||||||||||
Operating revenue |
$ |
103,200 |
$ |
14,096 |
$ |
33,564 |
$ |
47,660 |
|||||||
Commissions |
(2,345) |
(407) |
(769) |
(1,176) |
|||||||||||
Voyage expenses |
(18,793) |
(4,634) |
(8,574) |
(13,208) |
|||||||||||
Vessel operating expenses |
(39,219) |
(6,530) |
(22,681) |
(29,211) |
|||||||||||
General and administrative expenses |
(11,181) |
(2,306) |
(4,553) |
(6,859) |
|||||||||||
Management fees |
(1,007) |
(315) |
(900) |
(1,215) |
|||||||||||
Other income/expense, net |
(5) |
- |
40 |
40 |
|||||||||||
Net operating (loss) / income before depreciation and amortization |
30,650 |
(96) |
(3,873) |
(3,969) |
|||||||||||
Depreciation and amortization expense |
(39,558) |
(4,844) |
(11,813) |
(16,657) |
|||||||||||
Impairment losses |
(39,515) |
- |
(68,042) |
(68,042) |
|||||||||||
Net operating (loss) / income |
(48,423) |
(4,940) |
(83,728) |
(88,668) |
|||||||||||
Transaction costs |
(1,340) |
(8,936) |
(3,442) |
(12,378) |
|||||||||||
Straight line revenue |
(467) |
- |
- |
- |
|||||||||||
Compensation costs |
(2,680) |
(783) |
(371) |
(1,154) |
|||||||||||
Provision for doubtful receivables |
(391) |
- |
- |
- |
|||||||||||
Gain on sale from vessels |
(1,560) |
- |
- |
- |
|||||||||||
Interest and finance expense, net |
(44,899) |
(23,996) |
(10,928) |
(34,924) |
|||||||||||
Interest income |
550 |
236 |
9 |
245 |
|||||||||||
Change in fair value of derivatives |
1,592 |
2,554 |
3,012 |
5,566 |
|||||||||||
Loss from continuing operations |
$ |
(97,618) |
$ |
(35,865) |
$ |
(95,448) |
$ |
(131,313) |
|||||||
NEWLEAD HOLDINGS LTD. |
||||||||||||||||||
RECONCILIATION OF NET LOSS UNDER GAAP TO ADJUSTED EBITDA (NON-GAAP) |
||||||||||||||||||
(All amounts expressed in thousands of U.S. dollars) |
||||||||||||||||||
(Unaudited) |
||||||||||||||||||
Successor |
Predecessor |
Combined |
Successor |
Predecessor |
Combined |
|||||||||||||
October 1, to |
October 14, to |
October 1, to |
October 1, to |
Year Ended |
October 14, to |
January 1, to |
Year Ended |
|||||||||||
December 31, |
December 31, |
October 13, |
December 31, |
December 31, |
December 31, |
October 13, |
December 31, |
|||||||||||
2010 |
2009 |
2009 |
2009 |
2010 |
2009 |
2009 |
2009 |
|||||||||||
ADJUSTED EBITDA RECONCILIATION |
||||||||||||||||||
Loss from continuing operations |
$ |
(38,697) |
$ |
(35,865) |
$ |
(1,084) |
$ |
(36,949) |
$ |
(97,618) |
$ |
(35,865) |
$ |
(95,448) |
$ |
(131,313) |
||
PLUS: |
||||||||||||||||||
Net interest expense |
11,795 |
23,760 |
793 |
24,553 |
44,349 |
23,760 |
10,919 |
34,679 |
||||||||||
Depreciation and amortization |
11,425 |
4,844 |
401 |
5,245 |
39,558 |
4,844 |
11,813 |
16,657 |
||||||||||
EBITDA (1) |
$ |
(15,477) |
$ |
(7,261) |
$ |
110 |
$ |
(7,151) |
$ |
(13,711) |
$ |
(7,261) |
$ |
(72,716) |
$ |
(79,977) |
||
Straight line revenue |
34 |
158 |
- |
158 |
467 |
158 |
- |
158 |
||||||||||
Provision for doubtful receivables |
97 |
- |
2 |
2 |
391 |
- |
217 |
217 |
||||||||||
Provision for claims |
175 |
- |
267 |
267 |
1,674 |
- |
3,730 |
3,730 |
||||||||||
Change in fair value of derivatives |
- |
(2,554) |
(1,627) |
(4,181) |
(1,592) |
(2,554) |
(3,012) |
(5,566) |
||||||||||
Impairment losses |
23,853 |
- |
- |
- |
39,515 |
- |
68,042 |
68,042 |
||||||||||
Loss on sale from vessels |
2,728 |
- |
- |
- |
1,560 |
- |
- |
- |
||||||||||
Share based compensation |
652 |
7,898 |
423 |
8,321 |
2,680 |
7,898 |
793 |
8,691 |
||||||||||
Operating loss for non-core vessels |
- |
4,594 |
1,139 |
5,733 |
6,564 |
4,594 |
11,498 |
16,092 |
||||||||||
ADJUSTED EBITDA (2) |
$ |
12,062 |
$ |
2,835 |
$ |
314 |
$ |
3,149 |
$ |
37,548 |
$ |
2,835 |
$ |
8,552 |
$ |
11,387 |
||
(1) EBITDA represents net loss from continuing operations before net interest, taxes, depreciation and amortization. |
||||||||||||||||||
(2) Adjusted EBITDA represents EBITDA before other non-cash items, including straight-line of revenue, provision for doubtful receivables, provision for claims, change in fair value of derivatives, impairment loss, gains and losses on sales of assets, share-based compensation expense and operating loss for the High Rider, the High Land, the Ostria, the Nordanvind and the Chinook ("non-core vessels"). We use adjusted EBITDA because we believe that it is a basis upon which liquidity can be assessed and because we believe that adjusted EBITDA presents useful information to investors regarding the Company’s ability to service and/or incur indebtedness. We also believe that adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. |
||||||||||||||||||
SOURCE NewLead Holdings Ltd.
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