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International Shipholding 8-K 2010 Exhibit 99.1
INTERNATIONAL
SHIPHOLDING CORPORATION REPORTS
FOURTH
QUARTER AND YEAR-END 2009 RESULTS
Declares
Fourth Quarter Dividend of $0.50 Per Share and
Establishes
a 2010 Quarterly Dividend Target
Mobile, Alabama, >January 29,
2010 – International Shipholding Corporation (NYSE: ISH) today announced the
financial results for the fourth quarter and year ended December 31,
2009.
Report
Highlights
Net
Income
International
Shipholding Corporation today reported results for the three months and year
ended December 31, 2009. The Company reported net income of $10.777
million for the three months ended December 31, 2009, after a one time loss of
$2.1 million on the sale of an obsolete foreign flag container vessel, compared
to $4.909 million for the three months ended December 31, 2008. For
the full year 2009, net income was $42.221 million, compared to $39.049 million
for the 2008 year. Results for the 2008 year included net income from
discontinued LASH Liner service of $4.827 million and a $15.900 million gain
from the sale of a vessel.
Mr. Niels
M. Johnsen, chairman and chief executive officer, stated: “The Company continues
to deliver strong operating results. Our fleet’s diversified
portfolio of medium to long-term contracts produced the 2009 year results
despite the global economic slowdown.”
“In
addition, we grew our fleet with an agreement to purchase three new handysize
double-hull drybulk carriers scheduled for deliveries between the fourth quarter
of 2010 and the first quarter of 2011 and a participation in a joint venture
that has contracted to build eight new mini bulkers. These two transactions have
positioned us for growth by further diversifying our portfolio and increasing
our long-term earnings potential. As we enter 2010, we will continue to seek
accretive opportunities that align with our long-term growth
strategy.”
Operating
Income
Operating
Income for the three months ended December 31, 2009 was $7.7 million, including
a loss of $2.1 million on the sale of an obsolete foreign flag container vessel
used in its Time Charter segment. For the comparable period in 2008,
Operating Income was $5.4 million.
The
Company’s Time Charter segment posted higher results for the fourth quarter of
2009 from the continued carriage of supplemental cargoes on its U.S. flag Pure
Car Truck Carrier fleet.
The
results for the Contract of Affreightment segment were lower compared to the
prior-year period, primarily as a result of a scheduled reduction in the
contracted freight rates. The lower rates will be in place through
the end of the contract.
In the
Company’s Rail Ferry segment, fourth-quarter 2009 results declined from the
comparable quarter in 2008. Northbound cargo volumes continue to be
impacted by the drop in demand for imported consumer commodities in the United
States.
Administrative
and General Expense
Administrative
and general expenses were slightly higher in the fourth quarter of 2009 compared
to the fourth quarter of 2008. The 2009 amount includes a $750,000
accrued contingent liability associated with incentives received in 2007 from
various Alabama agencies to relocate our corporate headquarters.
Interest
Income and Expense
Interest
Expense for the three months ended December 31, 2009 increased from the same
period in 2008, reflecting the financing associated with the acquisition of two
vessels, which were subsequently sold and financed to a third party to support
our service in Indonesia. Income from this financing is reflected as “Other
Income from Vessel Financing”.
The gain
of $980,000 on the Sale of Investment reflects the book gain from the
liquidation of our stock investment portfolio.
Federal
Income Tax Benefit
The
Company’s total income tax benefit for the fourth quarter of 2009 was $1.1
million compared to a benefit of $29,000 for the 2008 comparable
period. The higher benefit was primarily attributable to the lower
results of the Company’s U. S. flag Coal Carrier and Rail Ferry
segments, which are subject to the higher corporate statutory rate.
Dividend
Declaration
The
Company’s Board of Directors authorized the payment of a $0.50 dividend, payable
on March 1, 2010, for each share of common stock owned on the record date of
February 17, 2010. The Board of Directors has established a quarterly
dividend target of $0.375 per share, per quarter, for the 2010 fiscal year. The
declaration of dividends and their amount, if any, will continue to be
determined by the Board of Directors based on the Company’s operating results,
growth objectives and cash requirements.
Mr.
Johnsen noted: “During a challenging year for the shipping industry, we
continued to take advantage of the Company’s significant contract coverage to
distribute cash to shareholders. Since reinitiating a dividend policy, the
Company has declared six consecutive dividends for a cumulative amount of $3.00
per share. We see interesting opportunities for continued expansion
in the current environment. Therefore, we have decided to set a new dividend
target for 2010. This decision enables the Company to continue to distribute
dividends to shareholders while strengthening our financial flexibility to take
advantage of strategic growth opportunities for continued
expansion.”
About International
Shipholding
International
Shipholding Corporation, through its subsidiaries, operates a diversified fleet
of U. S. and foreign flag vessels that provide international and domestic
maritime transportation services to commercial and governmental customers
primarily under medium to long-term charters and contracts.
For more
information about the company, please visit www.intship.com.
Caution Concerning
Forward-Looking Statements
This
press release contains forward-looking statements within the meaning of the U.S.
federal securities laws. These forward-looking statements are based on
assumptions and opinions concerning a variety of known and unknown risks. Please
refer to ISH’s Annual Report on form 10-K for the year ended December 31, 2008
as well as its future filings and reports filed with or furnished to the
Securities and Exchange Commission for a description of the business environment
in which ISH operates and the important factors, risks and uncertainties that
may affect its business and financial results. If any assumptions or opinions
prove materially incorrect, any forward-looking statements made on that basis
may also prove to be materially incorrect. ISH is not under any obligation to
(and expressly disclaims any such obligations to) update or alter its
forward-looking statements whether as a result of new information, future events
or otherwise.
Contact:
The IGB
Group
Lev
Janashvili
(212)
227-7098
ljanashvili@igbir.com
David
Burke
(646)
673-9701
dburke@igbir.com
International
Shipholding Corporation
Niels M.
Johnsen, Chairman (212) 943-4141
Erik L.
Johnsen, President (251) 243-9221
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