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Global Ship Lease Reports Results for the Second Quarter of 2021

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Declares Dividend of $0.25 per Common Share

Expanded Fleet by over 50% in Year to Date

LONDON, Aug. 05, 2021 (GLOBE NEWSWIRE) -- Global Ship Lease, Inc. (NYSE:GSL) (the “Company”, “Global Ship Lease” or “GSL”), an owner of containerships, announced today its unaudited results for the three and six month periods ended June 30, 2021.

Second Quarter 2021 and Year To Date Highlights

- Reported operating revenue of $82.9 million for the second quarter 2021. Operating revenue for the six months ended June 30, 2021, was $155.9 million.

- Reported net income available to common shareholders of $30.1 million for the second quarter 2021 after $7.8 million net gain from sale of the 2,272 TEU 2001 built, containership, La Tour and a prepayment fee of $1.4 million on the completion of the refinancing of our Deutsche, CIT, HCOB, Entrust, Blue Ocean Credit Facility (“Odyssia Credit Facilities”), giving normalized net income(3) for the quarter of $23.7 million.

- For the six months ended June 30, 2021, net income available to common shareholders was $34.2 million, after $5.8 million premium paid on the full optional redemption of our outstanding 9.875% Senior Secured Notes due 2022 (“2022 Notes”) on January 20, 2021, an associated non-cash write off of deferred financing charges of $3.7 million and of original issue discount of $1.1 million, a non-cash charge of $1.3 million for accelerated stock based compensation expense, a prepayment fee of $1.6 million on the partial repayment of the Blue Ocean Junior Credit Facility, the prepayment fee of $1.4 million on the completion of the refinancing of our Odyssia Credit Facilities and the $7.8 million net gain from sale of La Tour, giving normalized net income(3) for the six months of $41.5 million.

- Generated $51.5 million of Adjusted EBITDA(3) for the second quarter 2021. Adjusted EBITDA for the six months ended June 30, 2021 was $96.2 million.

- Earnings per share for the second quarter of 2021 was $0.83. Earnings per share for the six months ended June 30, 2021 was $1.00.

- Declared a dividend of $0.25 per Class A common share for the second quarter of 2021 to be paid on September 3, 2021 to common shareholders as of August 23, 2021. Paid a dividend of $0.25 per Class A common share for the first quarter 2021 on June 3, 2021 to common shareholders of record as of May 24, 2021, more than double the $0.12 per Class A common share announced on January 12, 2021, as a result of fleet growth and success in rechartering.

- During the second quarter 2021, raised $23.6 million net proceeds under the ATM program for the 8.75% Series B Preferred Shares (“Series B Preferred Shares”). During the period from July 1, 2021 through August 4, 2021, a further $6.4 million net proceeds was raised under this ATM program. Since the inception of this ATM program a total of $60.8 million net proceeds has been raised.

- During the second quarter 2021, raised a further $7.6 million net proceeds under the ATM program for the 8.00% Senior Unsecured Notes due 2024 (“2024 Notes”). The total outstanding 2024 Notes as at June 30, 2021 was $117.5 million, which includes the issuance of $35.0 million of the 2024 Notes to the sellers of 12 vessels, as part of the consideration. Since the inception of this ATM program a total of $50.9 million net proceeds has been raised.

- During the period from April 1, 2021 through August 4, 2021, took delivery of seven 6,000 TEU Post-Panamax containerships purchased for an aggregate price of $116.0 million, and chartered them back to Maersk Line, as announced in the press release of February 9, 2021. In April 2021, entered into a new credit facility with HCOB for six of these seven ships and drew down all tranches of $10.7 million each, amounting to a total of $64.2 million. One tranche was drawn down in July. The seventh vessel was financed by a sale and leaseback agreement with Neptune for $14.7 million.

- On April 13, 2021, Kelso and Maas Capital sold an aggregate of 5,175,000 Class A common shares in an underwritten public offering at $12.50 per share. Our free float increased, although we did not receive any proceeds from the sale of these Class A common shares.

- On April 16, 2021, drew down in full on a new $51.7 million secured credit facility to refinance one of the three existing tranches of the Odyssia Credit Facilities that had a maturity date on June 30, 2022. The second tranche was refinanced on May 7, 2021 with a new $51.7 million secured credit facility. The third tranche was refinanced on May 27, 2021, with a new $54.0 million sale and leaseback agreement with CMBFL.

- On June 8, 2021, announced agreement to purchase from Borealis Finance LLC, 12 containerships with an average size of approximately 3,000 TEU and a weighted average age of 11 years for an aggregate purchase price of $233.9 million. All 12 vessels were delivered between July 15 and July 29, 2021. In July 2021, entered into a new syndicated credit facility with HCOB and Credit Agricole for a total of $140.0 million to part finance the purchase price. The remaining purchase price was financed by cash on hand and the issuance of $35.0 million of our existing 2024 Notes to the sellers of the ships.

- On June 16, 2021, announced agreement to purchase four 5,470 TEU ultra-high reefer capacity Panamax containerships with an average age of approximately 11 years for an aggregate purchase price of $148.0 million. On delivery, the ships will be chartered to a leading liner operator for a firm period of three years each, with a charterer’s option for a period of an additional three years. The ships are scheduled for delivery during the third and fourth quarter of 2021. The purchase price is expected to be covered by cash on hand and new senior secured debt.

- On June 30, 2021, sold the 2,272 TEU 2001 built, La Tour, for net proceeds of $16.5 million resulting in a net gain of $7.8 million.

- On July 12, 2021, Moody’s upgraded the Corporate Family Rating to B1 / Stable from B2 / Positive.

- Between January 1 and August 4, 2021, including the charters on the 23 ships we have either purchased or contracted to purchase year to date, we have added 40 charters (including extensions), representing approximately $906 million of contracted revenues and $662 million of expected aggregate Adjusted EBITDA - calculated on the basis of the median firm periods of the respective charters. 18 charters were for 1,100 – 3,500 TEU feeder ships, eight were for 4,250 – 5,470 TEU Panamax ships, and 14 were for 5,900 – 6,800 TEU Post-Panamaxes. Charter durations ranged from approximately 21 months to five years, with shorter durations for the smaller ships and longer durations for the larger ships. Rates were up significantly against those previously contracted.

George Youroukos, Executive Chairman of Global Ship Lease, stated, “Moving into the summer months, the containership charter market has continued to reach new heights, driven by strong underlying containerized trade and an ongoing tightness in the supply of ships. These strong fundamentals, combined with continued port congestion and a generally overburdened logistics supply chain, have resulted in effectively full employment of the global fleet, which has, in turn, driven charter rates to record highs and has led to extended charter durations, now several times what they have been throughout the last decade. Looking forward, we are very encouraged to see a highly constrained supply of containerships through at least 2023/2024, particularly in the mid-sized asset classes where we focus, and a prospective long tail of containership demand supported by both high consumer demand for imported goods and anticipated restocking simply to restore retail inventories to more normalized levels. We also factor in the tougher environmental regulations that are set to come into effect starting in January 2023. Compliance with these new regulations will not only have a positive environmental impact by reducing emissions, but will also require much of the global containership fleet to slow down substantially, thus reducing effective capacity, with a one knot reduction in speed equating to a reduction of approximately 5-6% in fleet capacity.”

“Against this backdrop, we have remained very active in acquiring high-quality containerships with strong return profiles and minimal downside risk. Already in 2021, we have grown our fleet by over 50% while adding over $900 million of contracted revenues and over $660 million of contracted estimated Adjusted EBITDA. Our ability to continuously engage in immediately accretive growth throughout the mid-sized and smaller vessel classes, and to unlock the full potential of vessels with best-in-class reefer capacity, has proven the strength and scalability of the Global Ship Lease platform while also dramatically expanding our earnings and contracted revenues. Even as we continue to grow by taking delivery of recently acquired vessels and pursuing further such acquisitions as meet our criteria, we also expect to realize meaningful earnings growth in the coming months as a number of our ships renew charters in the hottest market in recent memory. This combination of highly supportive fundamentals, a proven strategy, and clear visibility on both contracted cashflows and attractive growth opportunities puts GSL in a strong position to continue generating excellent returns and ensuring a reliable and appealing dividend for our shareholders.”

Ian Webber, Chief Executive Officer of Global Ship Lease, commented, “In tandem with the commercial success that we have achieved, with new multi-year charters ensuring that we will benefit from the current market strength well into the future, we have continually seized opportunities to optimize our balance sheet and improve our long-term financial strength. In the first seven months of 2021, by the full redemption of our restrictive 2022 Senior Secured Notes and our other refinancing initiatives, we have refinanced $377.2 million of debt, removing all material maturities through end 2022, and dramatically improved our debt service and amortization profile while reducing our blended cost of debt from 6.3% to 5.2%. With the enhanced financial capabilities provided by these improved borrowing terms and affirmed by a further credit rating upgrade from Moody’s early in the third quarter, we remain continually active to ensure that the true strength and long-term prospects of our business are fully reflected throughout our balance sheet and capital structure.”

SELECTED FINANCIAL DATA – UNAUDITED

(thousands of U.S. dollars)

Three

Three

Six

Six

months
ended

months
ended

months
ended

months
ended

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Operating Revenue (1)

82,871

71,376

155,851

142,323

Operating Income

45,404

29,682

75,676

50,078

Net Income (2)

30,065

12,605

34,224

13,226

Adjusted EBITDA (3)

51,469

42,655

96,212

82,634

Normalized Net Income (3)

23,733

13,943

41,498

24,420

(1) Operating Revenue is net of address commissions which represents a discount provided directly to a charterer based on a fixed percentage of the agreed upon charter rate. Brokerage commissions are included in “Time charter and voyage expenses”.

(2) Net Income available to common shareholders.

(3) Adjusted EBITDA and Normalized Net Income are non-U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) financial measures, as explained further in this press release, and are considered by Global Ship Lease to be a useful measure of its performance. For reconciliations of these non-U.S. GAAP financial measure to net income, the most directly comparable U.S. GAAP financial measure, please see “Reconciliation of Non-U.S. GAAP Financial Measures” below.

Revenue and Utilization

Revenue from fixed-rate, mainly long-term, time-charters was $82.9 million in the three months ended June 30, 2021, up $11.5 million (or 16.1%) on revenue of $71.4 million for the prior year period. The increase in revenue is principally due to (i) a 3.9% increase in ownership days, due to the addition of six vessels during the second quarter 2021, to 4,255 in the quarter, compared to 4,095 in the second quarter 2020 (ii) a reduction in planned offhire days from 210 in the second quarter of 2020 to 168, (iii) increased revenue on charter renewals at higher rates from Maira, Nikolas, Dolphin II, Athena, Orca I, Ian H, GSL Ningbo and Julie, partially offset by decreases in revenue on renewals at lower rates from Maira XL, CMA CGM Alcazar, CMA CGM Chateau d’If and MSC Tianjin and, (iv) less idle time, down to 12 days in the second quarter 2021 from 194 in the second quarter 2020 mainly due to GSL Matisse and Utrillo which were held for sale as at June 30, 2020 and were sold in July 2020. The 168 days of offhire for dry dockings in the second quarter 2021 were attributable to five regulatory dry-docking. With 12 days idle time and 36 days of unplanned offhire days, utilization for the second quarter 2021 was 94.9%. In the comparative period of 2020, the 210 days of offhire for dry-dockings were mainly attributable to three dry-dockings in progress as of June 30, 2020, one for regulatory reasons and two for scrubber installation on Agios Dimitrios and MSC Qingdao. With 161 days idle time for GSL Matisse and Utrillo prior to their sale, 33 idle days for Julie and GSL Christen between charters and 20 days of unplanned offhire days, utilization was 89.6%.

For the six months ended June 30, 2021, revenue was $155.9 million, up $13.6 million (or 9.6%) on revenue of $142.3 million in the comparative period, mainly due to the factors noted above.

The table below shows fleet utilization for the three and six months ended June 30, 2021 and 2020, and for the years ended December 31, 2020, 2019, 2018 and 2017.

Three months ended

Six months ended

June 30,

June 30,

June 30,

June 30,

Dec 31,

Dec 31,

Dec 31,

Dec 31,

Days

2021

2020

2021

2020

2020

2019

2018

2017

Ownership days

4,255

4,095

8,125

8,111

16,044

14,326

7,675

6,570

Planned offhire - scheduled dry-dock

(168)

(210)

(195)

(434)

(687)

(537)

(34)

(62)

Unplanned offhire

(36)

(20)

(61)

(59)

(95)

(105)

(17)

(40)

Idle time

(12)

(194)

(27)

(250)

(338)

(164)

(47)

-

Operating days

4,039

3,671

7,842

7,368

14,924

13,520

7,577

6,468

Utilization

94.9%

89.6%

96.5%

90.8%

93.0%

94.4%

98.7%

98.4%

Two dry-dockings for regulatory requirements were completed in the quarter and as of June 30, 2021, three such dry-docking were in progress. In 2021, we anticipate eight further dry dockings for the existing fleet.

Vessel Operating Expenses

Vessel operating expenses, which primarily include costs of crew, lubricating oil, repairs, maintenance, insurance and technical management fees, were up 16.1% to $28.1 million for the second quarter 2021, compared to $24.2 million in the comparative period. The increase of $3.9 million was mainly due to 160 or 3.9% net additional ownership days in the second quarter 2021 as a result of the acquisition and delivery of six vessels since April 1, 2021, all of which are Post-Panamax with on average higher daily operating expenses, offset by the disposal of GSL Matisse and Utrillo in July 2020 and due to crew replacement and delivery of spares which were significantly reduced in prior year periods as a result of COVID-19 restrictions and delays. The average cost per ownership day in the quarter was $6,609, compared to $5,902 for the prior year period, up $707 per day, or 12.0%.

For the six months ended June 30, 2021, vessel operating expenses were $52.4 million, or an average of $6,450 per day, compared to $49.7 million in the comparative period, or $6,125 per day, an increase of $325 per ownership day, or 5.3%.

Time Charter and Voyage Expenses

Time charter and voyage expenses comprise mainly commission paid to ship brokers, the cost of bunker fuel for owner’s account when a ship is off-hire or idle and miscellaneous owner’s costs associated with a ship’s voyage. Time charter and voyage expenses were $2.1 million for the second quarter 2021, compared to $2.7 million in the second quarter of 2020. The decrease is mainly due to the decrease in idle days and unplanned off hire days resulting in lower costs for bunker fuel for owner’s account.

For the six months ended June 30, 2021, time charter and voyage expenses were $3.9 million, or an average of $479 per day, compared to $6.2 million in the comparative period, or $762 per day, a decrease of $283 per ownership day, or 37.1%.

Depreciation and Amortization

Depreciation and amortization for the second quarter 2021 was $13.1 million, compared to $11.6 million in the second quarter of 2020. The increase in the amortization expense is due to the nine drydockings that have been completed since July 1, 2020. Depreciation was increased due to the acquisition of six vessels since April 1, 2021.

Depreciation for the six months ended June 30, 2021 was $25.5 million, compared to $23.1 million in the comparative period, with the increase being due to the addition of six vessels since July 1, 2020.

Gain on sale of vessel and impairment of vessels

The 2001-built, 2,272 TEU containership, La Tour, was sold on June 30, 2021 for net proceeds of $16.5 million resulting in a gain of $7.8 million. As of March 31, 2020, we had an expectation that the 1999-built, 2,200 TEU feeder ships, GSL Matisse and Utrillo, would be sold before the end of their previously estimated useful life, and as a result performed an impairment test of these two asset groups and an impairment charge of $7.6 million was recognized. An additional impairment charge of $0.9 million was recognized on these two vessels in the three months ended June 30, 2020 for a total of $8.5 million in the six month period ended June 30, 2020. The two vessels were sold in July 2020.

General and Administrative Expenses

General and administrative expenses were $1.9 million in the second quarter 2021, compared to $2.3 million in the second quarter of 2020. The decrease was mainly due to the non-cash effect of accelerated stock based compensation expense recognized in the second quarter of 2020. The average general and administrative expense per ownership day for the second quarter 2021 was $436, compared to $567 in the comparative period, a decrease of $131 or 23.1%.

For the six months ended June 30, 2021, general and administrative expenses were $6.1 million, compared to $4.8 million in the comparative period mainly due to the non-cash effect of accelerated stock based compensation expense recognized in the first quarter of 2021. The average general and administrative expense per ownership day for the six-month period ended June 30, 2021 was $755, compared to $587 in the comparative period, an increase of $168 or 28.6% mainly due to the non-cash effect of the accelerated stock based compensation expense.

Adjusted EBITDA

Adjusted EBITDA was $51.5 million for the second quarter 2021, up from $42.7 million for the second quarter of 2020, with the net increase being mainly due to the increased operating days and the addition of six vessels since July 1, 2020.

Adjusted EBITDA for the six months ended June 30, 2021 was $96.2 million, compared to $82.6 million for the comparative period, with the increase being due to the addition of six vessels since July 1, 2020.

Interest Expense and Interest Income

Debt as at June 30, 2021 totaled $835.4 million, comprising $684.2 million secured debt collateralized by our vessels, $68.7 million from sale and leaseback financing transactions and $82.5 million of unsecured indebtedness on our 2024 Notes. As of June 30, 2021, none of our vessels were unencumbered.

Debt as at June 30, 2020 totaled $845.0 million, comprising $267.0 million of indebtedness on our 2022 Notes and $4.7 million of indebtedness under a secured term loan, both cross collateralized by 18 vessels in the legacy GSL fleet, $59.0 million of unsecured indebtedness on our 2024 Notes, and $514.3 million other secured debt collateralized by our other vessels. As of June 30, 2020, five of our vessels were unencumbered.

Interest and other finance expenses for the second quarter 2021 were $14.0 million, a decrease of $2.0 million, or 12.5%, on the interest and other finance expenses for the second quarter of 2020 of $16.0 million. The decrease is mainly due to the full repayment of our expensive 2022 Notes in January 2021 and the partial repayment of our Blue Ocean Junior Credit Facility in February 2021 offset by the prepayment fee of $1.4 million paid in the second quarter on the repayment and completion of the refinancing of our Odyssia Credit Facilities and the interest on the new loan with HCOB and new sale and leaseback agreement with Neptune.

Interest and other finance expenses for the six months ended June 30, 2021 were $39.3 million, an increase of $3.8 million, or 10.7%, on the interest and other finance expenses for the comparative period, of $35.5 million. The increase is mainly due to $5.8 million premium paid on the redemption in full of our 2022 Notes in January 2021 compared to $2.3 million premium paid on the redemption $46.0 million of the 2022 Notes in March 2020 plus the acceleration of deferred financing charges of $3.7 million, and the acceleration of amortization of original issue discount associated with the redemption of the 2022 Notes of $1.1 million plus the prepayment fee of $1.6 million paid on the partial repayment of our Blue Ocean Junior Credit Facility, plus the prepayment fee of $1.4 million paid on the repayment and completion of the refinancing of our Odyssia Credit Facilities and the interest on a new loan with HCOB and a new sale and leaseback agreement with Neptune, offset by decrease in LIBOR.

Interest income for the second quarter 2021 was $0.1 million, compared to $0.2 million for the second quarter of 2020.
Interest income for the six months period ended June 30, 2021 was $0.3 million, compared to $0.8 million for the comparative period.

Other Income/(Expenses), Net

Other income, net was $0.6 million in the three months ended June 30, 2021, compared to an expense, net of $0.4 million in the second quarter of 2020.

Other income, net was $0.9 million in the six months period ended June 30, 2021, compared to an other expense, net of $0.4 million in the comparative period.

Taxation

Taxation for the three months ended June 30, 2021 was nil, compared to a credit of $3,000 in the second quarter of 2020.

Taxation for the six months ended June 30, 2021 was nil, compared to a credit of $3,000 in the six months ended June 30, 2020.

Earnings Allocated to Preferred Shares

Our Series B Preferred Shares carry a coupon of 8.75%, the cost of which for the second quarter 2021 was $2.0 million, compared to $0.9 million for the second quarter of 2020. The increase is due to additional Series B Preferred Shares issued under our ATM program since June 2020. The cost was $3.5 million in the six months ended June 30, 2021, compared to $1.8 million for the comparative period.

Net Income Available to Common Shareholders

Net income available to common shareholders for the three months ended June 30, 2021 was $30.1 million, including $7.8 million net gain on the sale of La Tour and the prepayment fee of $1.4 million on the completion of the refinancing of our Odyssia Credit Facilities. Net income available to common shareholders for the prior period was $12.6 million after $0.9 million impairment charges associated with the decision to dispose of GSL Matisse and Utrillo and $0.4 million for accelerated stock based compensation expense due to vesting.

Net income available to common shareholders for the six months ended June 30, 2021 was $34.2 million, after the $7.8 million net gain on the sale of La Tour, the prepayment fee of $1.6 million on the partial repayment of our Blue Ocean Junior Credit Facility, the prepayment fee of $1.4 million on the completion of the refinancing of our Odyssia Credit Facilities, the non-cash effect of $1.3 million for accelerated stock based compensation expense due to vesting and new awards of fully vested incentive shares, $5.8 million premium paid on the redemption in full of our 2022 Notes in January 2021, and associated accelerated amortization of $3.7 million deferred financing charges and $1.1 million original issue discount. Net income available to common shareholders for the prior period was $13.2 million after $8.5 million non-cash impairment charges associated with the decision to dispose of GSL Matisse and Utrillo, the non-cash effect of $0.4 million for accelerated stock based compensation expense due to vesting, and $2.3 million premium paid on the redemption of $46.0 million of our 2022 Notes in February 2020.

Normalized net income for the three months ended June 30, 2021, was $23.7 million, before the $7.8 million net gain on the sale of La Tour and the prepayment fee of $1.4 million paid on the repayment of our Deutsche, CIT, HCOB, Entrust Blue Ocean Credit Facility. Normalized net income for the three months ended June 30, 2020, was $13.9 million, before the $0.9 million impairment charges associated with the decision to dispose of GSL Matisse and Utrillo and $0.4 million for accelerated stock based compensation expense due to vesting.

Normalized net income for the six months period ended June 30, 2021 was $41.5 million before the $7.8 million net gain on the sale of La Tour, a prepayment fee of $1.6 million on the partial repayment of our Blue Ocean Junior Credit Facility, the prepayment fee of $1.4 million on the completion of the refinancing of our Odyssia Credit Facilities, the non-cash effect of $1.3 million for accelerated stock based compensation expense, $5.8 million premium paid on the redemption in full of our 2022 Notes in January 2021, and the associated accelerated amortization of $3.7 million deferred financing charges and $1.1 million original issue discount. Normalized net income in the comparative period was $24.4 million, before the $8.5 million non-cash impairment charges associated with the decision to dispose of GSL Matisse and Utrillo, the non-cash effect of $0.4 million for accelerated stock based compensation expense and $2.3 million premium paid on the redemption of $46.0 million of our 2022 Notes in February 2020.

Fleet

Our fleet comprises 65 containerships, of which - as at August 4, 2021 – four have yet to be delivered. The first table below presents the fleet prior to the vessel acquisitions announced year to date (the “Status Quo Fleet”); the second shows the 23 ships purchased and contracted to be purchased year to date (the “Purchased Fleet”).

Status Quo Fleet





Vessel Name

Capacity in TEUs

Lightweight (tons)

Year Built

Charterer

Earliest Charter Expiry Date

Latest Charter Expiry Date

Daily Charter Rate $

CMA CGM Thalassa

11,040

38,577

2008

CMA CGM

4Q25

1Q26

47,200

UASC Al Khor(1)

9,115

31,764

2015

Hapag-Lloyd

1Q22

2Q22

34,000

Anthea Y(1)

9,115

31,890

2015

COSCO

3Q23

4Q23

38,000

Maira XL(1)

9,115

31,820

2015

ONE

2Q22

3Q22

31,650

MSC Tianjin

8,603

34,325

2005

MSC

2Q24

3Q24

19,000 (2)

MSC Qingdao

8,603

34,609

2004

MSC

2Q24

3Q24

23,000 (2)

GSL Ningbo

8,603

34,340

2004

MSC

1Q23

3Q23

22,500

GSL Eleni

7,847

29,261

2004

Maersk

3Q24

4Q24 (3)

16,500 (3)

GSL Kalliopi

7,847

29,105

2004

Maersk

4Q22

4Q24 (3)

14,500 (3)

GSL Grania

7,847

29,190

2004

Maersk

4Q22

4Q24 (3)

14,500 (3)

Mary(1)

6,927

23,424

2013

CMA CGM

3Q23

4Q23

25,910

Kristina(1)

6,927

23,421

2013

CMA CGM

2Q24

3Q24

25,910

Katherine (1)

6,927

23,403

2013

CMA CGM

1Q24

2Q24

25,910

Alexandra (1)

6,927

23,348

2013

CMA CGM

1Q24

2Q24

25,910

Alexis (1)

6,882

23,919

2015

CMA CGM

1Q24

2Q24

25,910

Olivia I (1)

6,882

23,864

2015

CMA CGM

1Q24

2Q24

25,910

GSL Christen

6,840

27,954

2002

Maersk

3Q23

4Q23

35,000 (4)

GSL Nicoletta

6,840

28,070

2002

MSC(5)

3Q24

4Q24

13,500(5)

CMA CGM Berlioz

6,621

26,776

2001

CMA CGM

4Q25

1Q26

34,000(6)

Agios Dimitrios

6,572

24,931

2011

MSC

4Q23

1Q24

20,000

GSL Vinia

6,080

23,737

2004

Maersk

3Q24

1Q25

13,250

GSL Christel Elisabeth

6,080

23,745

2004

Maersk

2Q24

1Q25

13,250

Tasman

5,936

25,010

2000

Maersk

1Q22

3Q23(7)

12,500(7)

ZIM Europe

5,936

25,010

2000

ZIM

1Q24

2Q24

14,500(8)

Ian H

5,936

25,128

2000

ZIM

2Q24

3Q24

32,500(8)

Dolphin II

5,095

20,596

2007

OOCL

1Q22

2Q22

24,500

Orca I

5,095

20,633

2006

Maersk

2Q24

3Q25

21,000 (9)

CMA CGM Alcazar

5,089

20,087

2007

CMA CGM

3Q26

4Q26

16,000 (10)

GSL Château d’If

5,089

19,994

2007

Hapag-Lloyd

4Q26

1Q27

14,500 (10)

CMA CGM Jamaica

4,298

17,272

2006

CMA CGM

3Q22

1Q23

25,350

CMA CGM Sambhar

4,045

17,429

2006

CMA CGM

3Q22

1Q23

25,350

CMA CGM America

4,045

17,428

2006

CMA CGM

3Q22

1Q23

25,350

GSL Valerie

2,824

11,971

2005

ZIM

3Q21

1Q22

13,250

Athena

2,762

13,538

2003

MSC(11)

2Q24

2Q24

21,500(11)

Maira

2,506

11,453

2000

Hapag-Lloyd

1Q23

2Q23

14,450

Nikolas

2,506

11,370

2000

CMA CGM

1Q23

1Q23

16,000

Newyorker

2,506

11,463

2001

CMA CGM

1Q24

2Q24

20,700(12)

Manet

2,272

11,727

2001

Sea-Lead

4Q21

4Q21

12,850

Keta

2,207

11,731

2003

OOCL

4Q24

1Q25

9,400 (13)

Julie

2,207

11,731

2002

Sea Consortium

1Q23

2Q23

20,000(14)

Kumasi

2,207

11,791

2002

CMA CGM

3Q21

4Q21

9,300

Marie Delmas

2,207

11,731

2002

CMA CGM

3Q21

4Q21

9,300







(1) Modern design, high reefer capacity, fuel-efficient vessel.
(2) MSC Tianjin. Chartered at $23,000 per day through dry-docking in 2Q2021; thereafter at $19,000 per day, due to cancellation of scrubber installation. MSC Qingdao has a scrubber installed and will continue to trade at a rate of $23,000 per day.
(3) GSL Eleni delivered 2Q2019 and is chartered for five years; GSL Kalliopi (delivered 4Q2019) and GSL Grania (delivered 3Q2019) are chartered for three years plus two successive periods of one year at the option of the charterer. During the option periods the charter rates for GSL Kalliopi and GSL Grania are $18,900 per day and $17,750 per day respectively.
(4) GSL Christen. Chartered at $15,000 per day through May 2021, at which time the rate increased to $35,000 per day.
(5) GSL Nicoletta. Chartered to MSC at $13,500 per day to 3Q21; thereafter to be chartered to Maersk at $35,750 per day.
(6) CMA CGM Berlioz. Chartered at $34,000 per day through December 2021, at which time the rate will increase to $37,750 per day.
(7) Tasman. 12-month extension at charterer’s option callable in 2Q2022, at an increased rate of $20,000 per day.
(8) A package agreement with ZIM, for direct charter extensions on two 5,900 TEU ships: Ian H, at a rate of $32,500 per day from May 2021, and ZIM Europe (formerly Dimitris Y), at a rate of $24,250 per day, from May 2022.
(9) Orca I. Chartered at $10,000 per day through April 2021, at which time the rate increased to $21,000 per day through to the median expiry of the charter in 2Q2024; thereafter the charterer has the option to charter the vessel for a further 12-14 months at the same rate.
(10) CMA CGM Alcazar and GSL Chateau d’If. Both ships have been forward fixed to CMA CGM for five years at $35,500 per day, with the new charters due to commence in 4Q2021;
(11) Athena. Chartered to MSC at a rate of $9,000 per day through April 2021, at which time the vessel was drydocked. Thereafter chartered to Hapag-Lloyd at $21,500 per day;
(12) Newyorker. Drydocked in 2Q2021; thereafter chartered to CMA CGM at $20,700 per day;
(13) Keta. Chartered to OOCL at $9,400 per day through 3Q2021. Thereafter forward fixed to CMA CGM at $25,000 per day;
(14) Julie. Chartered to Sea Consortium at a rate of $9,250 per day through May 2021; thereafter extended at $20,000 per day.






Purchased Fleet






Vessel Name

Capacity in TEUs

Lightweight (tons)

Year Built

Charterer

Earliest Charter Expiry Date

Latest Charter Expiry Date

Daily Charter Rate $

Actual/ Estimated Delivery date

GSL Dorothea

6,008

24,243

2001

Maersk

2Q24

4Q26

Note(1)

26/04/2021

GSL Arcadia

6,008

24,858

2000

Maersk

2Q24

1Q26

Note(1)

26/04/2021

GSL Violetta

6,008

24,873

2000

WHL/Maersk

4Q24

2Q26

Note(1)

28/04/2021

tbr GSL Maria

6,008

24,414

2001

ONE/Maersk

3Q24

2Q27

Note(1)

28/04/2021

GSL Tegea

6,008

24,308

2001

Maersk

2Q24

4Q26

Note(1)

17/05/2021

tbr GSL Melita

6,008

24,848

2001

Maersk

2Q24

4Q26

Note(1)

25/05/2021

GSL MYNY

6,008

24,873

2000

Maersk

3Q24

4Q26

Note(1)

28/07/2021

tbr GSL Tripoli

5,470

22,259

2009

Maersk

3Q24

4Q27

Note(2)

3/4Q21

tbr GSL Kithira

5,470

22,108

2009

Maersk

3Q24

4Q27

Note(2)

3/4Q21

tbr GSL Tinos

5,470

22,067

2010

Maersk

3Q24

4Q27

Note(2)

3/4Q21

tbr GSL Syros

5,470

22,098

2010

Maersk

3Q24

4Q27

Note(2)

3/4Q21

tbr GSL Susan

4,363

17,309

2008

CMA CGM

3Q22

4Q22

22,000

29/07/2021

tbr GSL Rossi

3,421

16,309

2012

Gold Star

1Q22

2Q22

20,000

29/07/2021

tbr GSL Alice

3,421

16,209

2014

CMA CGM

1Q23

2Q23

21,500

29/07/2021

tbr GSL Eleftheria

3,405

16,209

2013

Maersk

3Q25

4Q25

12,000(3)

29/07/2021

tbr GSL Melina

3,400

16,209

2013

Maersk

2Q23

3Q23

24,500

29/07/2021

Matson Molokai

2,824

12,032

2007

Matson

2Q22

2Q22

20,250

15/07/2021

tbr GSL Lalo

2,824

11,951

2006

ONE

1Q23

2Q23

18,500

29/07/2021

tbr GSL Mercer

2,824

11,970

2007

Hapag

3Q21

4Q21

11,700

29/07/2021

tbr GSL Elizabeth

2,742

11,507

2006

ONE

4Q22

1Q23

18,500

28/07/2021

tbr GSL Chloe

2,546

12,212

2012

ONE

4Q21

4Q21

15,000

29/07/2021

tbr GSL Maren

2,546

12,212

2014

Westwood

4Q22

1Q23

19,250

29/07/2021

tbr GSL Amstel

1,118

5,167

2008

CMA CGM

3Q23

3Q23

11,900

29/07/2021

(1) On February 9, 2021 we announced that we had contracted to purchase seven ships of approximately 6,000 TEU each, which have now been delivered. Contract cover for each vessel is for a firm period of at least three years from the date each vessel is delivered, with charterers holding a one-year extension option on each charter, followed by a second option with the period determined by (and terminating prior to) each vessel’s 25th year dry-docking & special survey. During the firm periods of cover the seven charters are expected to generate aggregate annualized Adjusted EBITDA of approximately $29.0 million. Five ships are chartered to Maersk from delivery; the remaining two (GSL Maria & GSL Violetta) will be chartered to Maersk upon completion of short charters to Wan Hai and ONE, respectively.
(2) On June 16, 2021 we announced that we had contracted to purchase four ultra-high reefer ships of 5,470 TEU each. These ships are scheduled to deliver in 3/4Q21. Contract cover is for a firm period of three years, with a period of an additional three years at charterers’ option. During the firm periods of cover the four charters are expected to generate aggregate annualized Adjusted EBITDA of approximately $31.1 million.
(3) GSL Eleftheria. Chartered to Maersk at $12,000 per day through September 2021; thereafter extended at $37,975 per day.


Conference Call and Webcast

Global Ship Lease will hold a conference call to discuss the Company's results for the three months ended June 30, 2021 today, Thursday August 5, 2021 at 10:30 a.m. Eastern Time. There are two ways to access the conference call:

(1) Dial-in: (877) 445-2556 or (908) 982-4670; Passcode: 2096344

Please dial in at least 10 minutes prior to 10:30 a.m. Eastern Time to ensure a prompt start to the call.

(2) Live Internet webcast and slide presentation: http://www.globalshiplease.com

If you are unable to participate at this time, a replay of the call will be available through Saturday, August 21, 2021 at (855) 859-2056 or (404) 537-3406. Enter the code 2096344 to access the audio replay. The webcast will also be archived on the Company’s website: http://www.globalshiplease.co

Annual Report on Form 20-F

The Company’s Annual Report for 2020 was filed with the Securities and Exchange Commission (the “Commission”) on March 19, 2021. A copy of the report can be found under the Investor Relations section (Annual Reports) of the Company’s website at http://www.globalshiplease.com or on the Commission’s website at www.sec.gov. Shareholders may request a hard copy of the audited financial statements free of charge by contacting the Company at info@globalshiplease.com or by writing to Global Ship Lease, Inc, care of Global Ship Lease Services Limited, 25 Wilton Road, London SW1V ILW.

About Global Ship Lease

Global Ship Lease is a leading independent owner of containerships with a diversified fleet of mid-sized and smaller containerships. Incorporated in the Marshall Islands, Global Ship Lease commenced operations in December 2007 with a business of owning and chartering out containerships under fixed-rate charters to top tier container liner companies. It was listed on the New York stock Exchange in August 2008.

As at August 5, 2021, Global Ship Lease owns 61 containerships, ranging from 1,118 to 11,040 TEU, and has contracted to purchase a further four ships, for a total fleet of 65 ships with an aggregate capacity of 342,378 TEU. 32 ships are wide-beam Post-Panamax.

Adjusted to include all charters agreed, and ships contracted to be purchased, up to August 4, 2021, the average remaining term of the Company’s charters as at June 30, 2021, to the mid-point of redelivery, including options under the Company’s control and other than if a redelivery notice has been received, was 2.5 years on a TEU-weighted basis. Contracted revenue on the same basis was $1.37 billion. Contracted revenue was $1.61 billion, including options under charterers’ control and with latest redelivery date, representing a weighted average remaining term of 3.1 years.

Reconciliation of Non-U.S. GAAP Financial Measures

A. Adjusted EBITDA

Adjusted EBITDA represents net income available to common shareholders before interest income and expense, earnings allocated to preferred shares, income taxes, depreciation and amortization of drydocking net costs, gains or losses on the sale of vessels, charges for share based compensation and impairment losses. Adjusted EBITDA is a non-U.S. GAAP quantitative measure used to assist in the assessment of our ability to generate cash from its operations. We believe that the presentation of 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. Adjusted EBITDA is not defined in U.S. GAAP and should not be considered to be an alternative to net income or any other financial metric required by such accounting principles. Our use of Adjusted EBITDA may vary from the use of similarly titled measures by others in our industry.

Adjusted EBITDA is presented herein both on a historic basis and on a forward-looking basis in certain instances. We have not provided a reconciliation of such forward looking non-U.S. GAAP financial measure to the most directly comparable U.S. GAAP measure because such U.S. GAAP financial measure on a forward-looking basis is not available to us without unreasonable effort.

ADJUSTED EBITDA - UNAUDITED

(thousands of U.S. dollars)


Three

Three

Six

Six

months

months

Months

Months

ended

ended

Ended

Ended

June 30,

June 30,

June 30,

June 30,

2021

2020

2021

2020

Net income available to Common Shareholders

30,065

12,605



34,224



13,226

Adjust:

Depreciation and amortization

13,136

11,578



25,519



23,126

Impairment of vessels

-

912

-

8,497

Gain on sale of vessel

(7,770)

-

(7,770)

-

Interest income

(121)

(193)

(364)

(831)

Interest expense

13,998

15,984

39,254

35,539

Share based compensation

150

855

1,854

1,284

Earnings allocated to preferred shares

2,011

911

3,495

1,790

Income tax

-

3

-

3

Adjusted EBITDA

51,469

42,655



96,212



82,634


B. Normalized net income

Normalized net income represents net income available to common shareholders adjusted for impairment charges, the premium paid on redemption of our 2022 Notes together with the associated accelerated amortization of deferred financing costs and original issue discount, prepayment fees on repayment of credit facilities, accelerated stock based compensation expense due to vesting and new awards of fully vested incentive shares, and gains or losses on sale of vessels. Normalized net income is a non-U.S. GAAP quantitative measure which we believe will assist investors and analysts who often adjust reported net income for items that do not affect operating performance or operating cash generated. Normalized net income is not defined in U.S. GAAP and should not be considered to be an alternate to net income or any other financial metric required by such accounting principles. Our use of Normalized net income may vary from the use of similarly titled measures by others in our industry.


NORMALIZED NET INCOME

(thousands of U.S. dollars)


Three

Three

Six

Six

months

months

months

months

ended

ended

Ended

ended

June 30,

June 30,

June 30,

June 30,

2021

2020

2021

2020

Net income available to Common Shareholders

30,065

12,605

34,224

13,226

Adjust:

Gain on sale of vessel

(7,770)

-

(7,770)

-

Prepayment fee on repayment of Odyssia Credit Facilities

1,438

-

1,438

-

Prepayment fee on partial repayment of Blue Ocean Credit Facility

-

-

1,618

-

Impairment of vessels

-

912

-

8,497

Accelerated stock based compensation expense due to vesting and new awards of fully vested incentive shares

-

426

1,346

426

Premium paid on redemption of 2022 Notes

-

-

5,764

2,271

Accelerated write off of deferred financing charges related to redemption of 2022 Notes

-

-

3,745

-

Accelerated write off of original issue discount related to redemption of 2022 Notes

-

-

1,133

-

Normalized net income

23,733

13,943



41,498

24,420


Safe Harbor Statement

This communication contains forward-looking statements. Forward-looking statements provide Global Ship Lease's current expectations or forecasts of future events. Forward-looking statements include statements about Global Ship Lease's expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. Words or phrases such as "anticipate," "believe," "continue," "estimate," "expect," "intend," "may," "ongoing," "plan," "potential," "predict," “should,” "project," "will" or similar words or phrases, or the negatives of those words or phrases, may identify forward-looking statements, but the absence of these words does not necessarily mean that a statement is not forward-looking. These forward-looking statements are based on assumptions that may be incorrect, and Global Ship Lease cannot assure you that these projections included in these forward-looking statements will come to pass. Actual results could differ materially from those expressed or implied by the forward-looking statements as a result of various factors.

The risks and uncertainties include, but are not limited to:

  • future operating or financial results;

  • expectations regarding the future growth of the container shipping industry, including the rates of annual demand and supply growth;

  • the length and severity of the ongoing outbreak of the novel coronavirus (COVID-19) around the world and governmental responses thereto;

  • the financial condition of our charterers, particularly CMA CGM, our principal charterer and main source of operating revenue, and their ability to pay charterhire in accordance with the charters;

  • Global Ship Lease’s financial condition and liquidity, including its level of indebtedness or ability to obtain additional financing to fund capital expenditures, ship acquisitions and other general corporate purposes;

  • Global Ship Lease’s ability to meet its financial covenants and repay its credit facilities;

  • Global Ship Lease’s expectations relating to dividend payments and forecasts of its ability to make such payments including the availability of cash and the impact of constraints under its credit facilities;

  • risks relating to the acquisition of Poseidon Containers and Global Ship Lease’s ability to realize the anticipated benefits of the acquisition;

  • future acquisitions, business strategy and expected capital spending;

  • operating expenses, availability of crew, number of off-hire days, drydocking and survey requirements and insurance costs;

  • general market conditions and shipping industry trends, including charter rates and factors affecting supply and demand;

  • assumptions regarding interest rates and inflation;

  • changes in the rate of growth of global and various regional economies;

  • risks incidental to ship operation, including piracy, discharge of pollutants and ship accidents and damage including total or constructive total loss;

  • estimated future capital expenditures needed to preserve its capital base;

  • Global Ship Lease’s expectations about the availability of ships to purchase, the time that it may take to construct new ships, or the useful lives of its ships;

  • Global Ship Lease’s continued ability to enter into or renew long-term, fixed-rate charters or other ship employment arrangements;

  • the continued performance of existing long-term, fixed-rate time charters;

  • Global Ship Lease’s ability to capitalize on its management’s and board of directors’ relationships and reputations in the containership industry to its advantage;

  • changes in governmental and classification societies’ rules and regulations or actions taken by regulatory authorities;

  • expectations about the availability of insurance on commercially reasonable terms;

  • unanticipated changes in laws and regulations including taxation;

  • potential liability from future litigation.

Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Global Ship Lease's actual results could differ materially from those anticipated in forward-looking statements for many reasons specifically as described in Global Ship Lease's filings with the U.S Securities and Exchange Commission (the “SEC”). Accordingly, you should not unduly rely on these forward-looking statements, which speak only as of the date of this communication.

Global Ship Lease undertakes no obligation to publicly revise any forward-looking statement to reflect circumstances or events after the date of this communication or to reflect the occurrence of unanticipated events. You should, however, review the factors and risks Global Ship Lease describes in the reports it will file from time to time with the SEC after the date of this communication.


Global Ship Lease, Inc.

Interim Unaudited Condensed Consolidated Balance Sheets

(Expressed in thousands of U.S. dollars)

June 30, 2021

December 31, 2020

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$

142,963

$

80,757

Restricted cash

17,465

825

Accounts receivable, net

2,872

2,532

Inventories

6,455

6,316

Prepaid expenses and other current assets

12,004

6,711

Due from related parties

2,007

1,472

Total current assets

$

183,766

$

98,613

NON - CURRENT ASSETS

Vessels in operation

$

1,212,642

$

1,140,583

Advances for vessels acquisitions and other additions

27,645

1,364

Deferred charges, net

23,605

22,951

Restricted cash, net of current portion

5,076

10,680

Total non - current assets

1,268,968

1,175,578

TOTAL ASSETS

$

1,452,734

$

1,274,191

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable

$

10,806

$

10,557

Accrued liabilities

16,116

19,127

Current portion of long-term debt

95,312

76,681

Deferred revenue

6,243

5,623

Due to related parties

312

225

Total current liabilities

$

128,789

$

112,213

LONG-TERM LIABILITIES

Long - term debt, net of current portion and deferred financing costs

$

726,008

$

692,775

Intangible liability-charter agreements

4,571

4,462

Total non - current liabilities

730,579

697,237

Total liabilities

$

859,368

$

809,450

Commitments and Contingencies

SHAREHOLDERS' EQUITY

Class A common shares - authorized
214,000,000 shares with a $0.01 par value
36,283,468 shares issued and outstanding (2020 – 17,741,008 shares)

362

177

Series B Preferred Shares - authorized
44,000 shares with a $0.01 par value
36,772 shares issued and outstanding (2020 – 22,822 shares)

-

-

Series C Preferred Shares - authorized
250,000 shares with a $0.01 par value
Nil shares issued and outstanding (2020 - 250,000 shares)

-

3

Additional paid in capital

689,921

586,355

Accumulated deficit

(96,917

)

(121,794

)

Total shareholders' equity

593,366

464,741

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

1,452,734

$

1,274,191



Global Ship Lease, Inc.

Interim Unaudited Condensed Consolidated Statements of Operations

(Expressed in thousands of U.S. dollars except share data)

Three months ended June 30,

Six months ended June 30,

2021

2020

2021

2020

OPERATING REVENUES

Time charter revenue (includes related party revenues of $33,810 and $36,848 for each of the three month periods ended June 30, 2021 and 2020, respectively, and $66,005 and $74,524 for each of the six month periods ended June 30, 2021 and 2020, respectively)

$

82,871

$

71,376

$

155,851

$

142,323

OPERATING EXPENSES:

Vessel operating expenses (includes related party vessel operating expenses of $3,578 and $3,068 for each of the three month periods ended June 30, 2021 and 2020, respectively, and $6,868 and $6,105 for each of the six month periods ended June 30, 2021 and 2020, respectively)

28,120

24,170

52,406

49,682

Time charter and voyage expenses (includes related party brokerage commissions of $781 and $591 for each of the three month periods ended June 30, 2021 and 2020, respectively, and $1,470 and $1,201 for each of the six months period ended June 30, 2021 and 2020, respectively)

2,124

2,712

3,889

6,181

Depreciation and amortization

13,136

11,578

25,519

23,126

Impairment of vessels

-

912

-

8,497

General and administrative expenses

1,857

2,322

6,131

4,759

Gain on sale of vessels

(7,770

)

-

(7,770

)

-

Operating Income

45,404

29,682

75,676

50,078

NON-OPERATING INCOME/(EXPENSES)

Interest income

121

193

364

831

Interest and other finance expenses (include of $5,764 and $2,271 Notes premium for each of the six months ended June 30, 2021 and 2020, respectively)

(13,998

)

(15,984

)

(39,254

)

(35,539

)

Other income, net

549

(372

)

933

(351

)

Total non-operating expenses

(13,328

)

(16,163

)

(37,957

)

(35,059

)

Income before income taxes

32,076

13,519

37,719

15,019

Income taxes

-

(3

)

-

(3

)

Net Income

$

32,076

$

13,516

$

37,719

$

15,016

Earnings allocated to Series B Preferred Shares

(2,011

)

(911

)

(3,495

)

(1,790

)

Net Income available to Common Shareholders

$

30,065

$

12,605

$

34,224

$

13,226



Global Ship Lease, Inc.

Interim Unaudited Condensed Consolidated Statements of Cash Flows

(Expressed in thousands of U.S. dollars)

Three months ended June 30,

Six months ended June 30,

2021

2020

2021

2020

Cash flows from operating activities:

Net income

$

32,076

$

13,516

$

37,719

$

15,016

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

$

13,136

$

11,578

$

25,519

$

23,126

Impairment of vessels

-

912

-

8,497

Gain on sale of vessel

(7,770

)

-

(7,770

)

-

Amortization of deferred financing costs

957

994

5,363

1,921

Amortization of original issue discount/premium on repurchase of notes

92

143

7,136

2,282

Amortization of intangible liabilities/assets-charter agreements

(1,959

)

(124

)

(2,461

)

355

Share based compensation

150

853

1,854

1,282

Changes in operating assets and liabilities:

Increase/(decrease) in accounts receivable and other assets

$

(1,768

)

$

390

$

(5,633

)

$

182

Increasse in inventories

(476

)

(80

)

(139

)

(476

)

Increase/(decrease) in accounts payable and other liabilities

2,918

(11,749

)

(3,148

)

(5,154

)

Increase/(decrease) in related parties' balances, net

788

(1,526

)

(447

)

(3,460

)

Increase/(decrease) in deferred revenue

572

(1,659

)

620

(4,968

)

Unrealized foreign exchange loss

-

1

-

1

Net cash provided by operating activities

$

38,716

$

13,249

$

58,613

$

38,604

Cash flows from investing activities:

Acquisition of vessels and intangibles

$

(98,400

)

$

-

$

(98,400

)

$

(23,060

)

Cash paid for vessel expenditures

(328

)

(277

)

(2,233

)

(1,385

)

Advances for vessel acquisitions and other additions

(25,709

)

(1,079

)

(25,957

)

(1,279

)

Cash paid for drydockings

(2,594

)

(3,117

)

(4,181

)

(7,189

)

Net proceeds from sale of vessels

16,514

4,119

16,514

4,119

Net cash used in investing activities

$

(110,517

)

$

(354

)

$

(114,257

)

$

(28,794

)

Cash flows from financing activities:

Proceeds from issuance of 2024 Notes

$

7,606

$

-

$

22,702

$

19,193

Repurchase of 2022 Notes, including premium

-

(625

)

(239,183

)

(57,822

)

Proceeds from drawdown of credit facilities

225,605

-

461,805

47,000

Repayment of credit facilities

(23,021

)

(20,460

)

(53,838

)

(33,912

)

Repayment of refinanced debt

(143,799

)

-

(143,799

)

(44,366

)

Deferred financing costs paid

(3,680

)

(89

)

(7,916

)

(969

)

Proceeds from offering of Class A common shares, net of offering costs

(372

)

(37

)

67,612

(76

)

Proceeds from offering of Series B preferred shares, net of offering costs

23,649

1,179

34,345

4,982

Class A common shares-dividend paid

(9,347

)

-

(9,347

)

-

Series B Preferred Shares-dividend paid

(2,011

)

(911

)

(3,495

)

(1,790

)

Net cash provided by / (used in) financing activities

$

74,630

$

(20,943

)

$

128,886

$

(67,760

)

Increase/(decrease) in cash and cash equivalents and restricted cash

2,829

(8,048

)

73,242

(57,950

)

Cash and cash equivalents and restricted cash at beginning of the period

162,675

97,734

92,262

147,636

Cash and cash equivalents and restricted cash at end of the period

$

165,504

$

89,686

$

165,504

$

89,686

Supplementary Cash Flow Information:

Cash paid for interest

$

10,078

$

21,909

$

24,547

$

33,098

Non-cash Investing activities:

Unpaid drydocking expenses

1,890

482

1,890

482

Unpaid vessel expenditures

3,474

2,823

3,474

2,823

Non-cash financing activities:

Unpaid offering costs

63

-

63

-

Unpaid deferred financing costs

406

-

406

-


Investor and Media Contacts:
The IGB Group
Bryan Degnan
646-673-9701
or
Leon Berman
212-477-8438


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