Global Ship Lease Reports Results for the First Quarter of 2013

Global Ship Lease, Inc. (GSL), a containership charter owner, announced yesterday its unaudited results for the three months ended March 31, 2013.
First Quarter and Year To Date Highlights
- Reported revenue of $35.2 million for the first quarter 2013
- Reported net income for the first quarter 2013 of $7.2 million, including a $5.5 million non-cash mark-to-market gain from interest rate derivatives
- Generated $22.2 million of Adjusted EBITDA(1) for the first quarter 2013
- Excluding the non-cash mark-to-market item, normalized net income(1) was $1.8 million for the first quarter 2013
- Agreed to new one-year charters for two 4,113 TEU vessels which commenced on May 1, 2013 at $7,000 per vessel per day. The new charters expire on April 30, 2014 plus/minus 30 days at charterer's option
- Repaid $14.8 million of debt in the first quarter 2013 for a total debt repayment of $188.2 million since August 2009, when we commenced amortization of our credit facility balance
Ian Webber, Chief Executive Officer of Global Ship Lease, stated, "With all 17 of our vessels on time charters and fewer offhire days from reduced numbers of drydockings, as planned, we achieved utilization of 98.3% for the quarter. As a result, we generated Adjusted EBITDA of $22.2 million, using our cash to continue to de-lever our balance sheet, amortizing an additional $14.8 million of debt."
Mr. Webber continued, "We recently successfully re-chartered the two vessels whose contracts were due to expire this month, agreeing to new one-year charters with CMA CGM, underlining the strength of our relationship. Notwithstanding ongoing volatility in the industry and many vessels of a similar specification currently being idle, we have secured employment for these two vessels until April 2014, thereby maintaining a fully chartered fleet for at least one more year. Other than for these two vessels, we have no other charter expirations until late 2016. Importantly, by continuing the charters with CMA CGM, we will not experience any offhire days, incur any costs associated with repositioning the vessels or pay any third party brokerage fees."
Mr. Webber concluded, "We remain well positioned to continue to de-lever our balance sheet, owing to our high level of contracted charter coverage which allows us to generate consistent revenue and strong, stable cash flow. We also continue to actively explore opportunities to enhance our financial flexibility and create incremental value for our shareholders."
http://www.globalshiplease.com/releasedetail.cfm?ReleaseID=763423
Source: Global Ship Lease