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International Shipholding Corp. Reports Operating Results (10-Q)

November 06, 2009 | About:
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10qk

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International Shipholding Corp. (ISH) filed Quarterly Report for the period ended 2009-11-06.

INTL SHIPHOLDING CORP. through its subsidiaries operates a diversified fleet of U.S. and international flag vessels that provide international and domestic maritime transportation services to commercial customers and agencies of the United States government primarily under medium- to long- term charters or contracts. International Shipholding Corp. has a market cap of $255.7 million; its shares were traded at around $34.53 with a P/E ratio of 6.6 and P/S ratio of 1.1. The dividend yield of International Shipholding Corp. stocks is 5.8%.

Highlight of Business Operations:

Gross voyage profit increased from $30.2 million in the first nine months of 2008 to $45.2 million in the first nine months of 2009. Revenues increased from $209.2 million in the first nine months of 2008 to $290.2 million in the first nine months of 2009. Voyage expenses increased from $164.2 million in the first nine months of 2008 to $226.6 million in the first nine months of 2009. The changes of revenue and expenses associated with each of our segments are discussed within the following analysis below.

Time Charter Contracts: The increase in this segment s gross voyage profit from $25.8 million in the first nine months of 2008 to $44.0 million in the first nine months of 2009 was primarily due to an increase in the carriage of supplemental cargoes on our U.S. flag Pure Car Truck Carriers. Offsetting this increase in gross voyage profit is an impairment charge of $2.9 million taken on one of our International flag container vessels. This impairment loss was the result of the early charter party contract termination on one of our International flag container vessel. The Company and the Charterer agreed to the early termination in exchange for an increase in charter hire on the other International flag container vessel remaining under charter. The vessel was sold in the third quarter and an additional loss of $129,000 was recorded.

Rail-Ferry Service: Gross voyage profit decreased from $1.4 million in the first nine months of 2008 to a loss of $1.3 million in the first nine months of 2009. Revenues for this segment decreased from $30.2 million in the first nine months of 2008 to $21.2 million in the first nine months of 2009 due to a drop in volume and rates due to the current weak economic conditions.

We recorded a benefit for income taxes of $2.4 million on our $24.0 million of income from continuing operations before income from unconsolidated entities in the first nine months of 2009, reflecting tax losses on operations taxed at the U.S. corporate statutory rate. For the first nine months of 2008, our benefit was $848,000 on our $8.6 million of income from continuing operations before income from unconsolidated entities. For further information on certain tax laws and elections, see our annual report on Form 10-K for the year ended December 31, 2008, including Note G to the financial statements. Our qualifying U.S. flag operations continue to be taxed under the “tonnage tax” laws.

Gross voyage profit decreased from $16.5 million in the third quarter of 2008 to $15.5 million in the third quarter of 2009. Revenues increased from $84.3 million in the third quarter of 2008 to $92.3 million in the third quarter of 2009. Voyage expenses increased from $63.1 million in the third quarter of 2008 to $71.7 million in the third quarter of 2009. The changes of revenue and expenses associated with each of our segments are discussed within the following analysis below.

Time Charter Contracts: The decrease in this segment s gross voyage profit from $14.4 million in the third quarter of 2008 to $13.7 million in the third quarter of 2009 was primarily due to the acceleration of unamortized drydock charges and higher operating costs in the third quarter of 2009 and the favorable impact of settling loss of hire claims in the third quarter of 2008. Revenues increased for this segment from $67.4 million in the third quarter of 2008 to $78.7 million in the third quarter of 2009 as a result of increased supplemental cargo volumes on our United States flag Pure Car Truck Carriers.

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