International Shipholding Corp. (ISH, Financial) filed Quarterly Report for the period ended 2010-05-06.
International Shipholding Corp. has a market cap of $194.9 million; its shares were traded at around $26.19 with a P/E ratio of 4.1 and P/S ratio of 0.5. The dividend yield of International Shipholding Corp. stocks is 7.6%.ISH is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Other: Gross profit increased from a $648,000 loss in the first quarter of 2009 to a $1.0 million profit in the first quarter of 2010. This increase was primarily due to foreign currency exchange gains of $380,000 in the first three months of 2010 compared to $374,000 of foreign currency exchange losses during the same period in 2009 and prior policy years insurance reserve adjustments on closed claims of approximately $600,000.
Equity in net income of unconsolidated entities, net of taxes, increased from $961,000 in the first quarter of 2009 to $2.5 million in the first quarter of 2010. The results were driven by our 50% investment in Dry Bulk, which owns 100% of subsidiary companies that currently own two Capesize Bulk Carriers and have two Handymax Bulk Carrier Newbuildings on order for delivery in 2012. For the first quarters of 2010 and 2009, our portion of the earnings of this investment, net of taxes, was $2.2 million and $1.0 million, respectively, with the increase being principally due to Dry Bulk having sold one of its one remaining Panamax vessels in the first quarter 2010. Equity in net income of unconsolidated entities net of taxes, for the first quarter 2010 was further impacted by our 25% investment in Oslo during December 2009. Our portion of the earnings of this investment was $247,000 for the three months ended March 31, 2010, primarily related to the settlement of a derivative contract.
Our working capital (which we define as the difference between our total current assets and total current liabilities) decreased from $41.9 million at December 31, 2009, to $19.1 million at March 31, 2010. This decrease was primarily due to the termination of a direct finance lease on one of our U.S. flag PCTC Vessels. The vessel was redelivered to us in February, 2010 and was reclassified as a capital asset. Cash and cash equivalents increased during the first three months of 2010 by $14.6 million to a total of $62.1 million at March 31, 2010, which includes $20 million of cash (and cash equivalents) held following a draw on our line of credit which was subsequently paid off in the beginning of April 2010. In addition, marketable securities increased during this period to $18.5 million with the purchase of $8.0 million of short-term corporate bonds. The increase in cash and cash equivalents was a result of cash provided by operating activities of $12.5 million, cash provided by financing activities of $62.1 million, offset by cash used by investing activities of $59.9 million. Total current liabilities of $104.4 million as of March 31, 2010 included current maturities of long-term debt of $74.8 million.
Net cash used by investing activities of $59.9 million included capital improvements of $54.2 million, the purchase, net of sales, of short-term corporate bonds of $8.0 million and principal payments received under Direct Financing Leases of $1.7 million. Included in these $54.2 million of capital improvements is $50.3 million for the final installment payment on a Pure Car Truck Carrier delivered in late March 2010. Net cash provided for financing activities of $62.1 million included regularly scheduled debt payments of $4.3 million and cash dividends paid of $3.7 million, more than offset by proceeds from new debt of $70.3 million, including a $46.1 million loan relating to the purchase of the previously mentioned Pure Car Truck Carrier Newbuilding and a $20 million draw on our line of credit that we repaid early in the second quarter of 2010.
In the unanticipated event that our cash flow and capital resources are not sufficient to fund our debt service obligations, we could be forced to reduce or delay capital expenditures, sell assets, obtain additional equity capital, borrow money, or restructure our debt. We believe we have sufficient liquidity despite the recent disruption of the capital and credit markets and believe we can continue to fund working capital and capital investment liquidity needs through cash flow from operations. We have $90.9 million due in 2010, which includes approximately $47 million related to a balloon payment on financing of our PCTC vessel purchased in 2007, $16.6 million due in 2011, $29.0 million due in 2012, $30.6 million due in 2013 and $20.2 million due in 2014. We intend to replace all or part of the balloon payment due this year with long-term financing in 2010.
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International Shipholding Corp. has a market cap of $194.9 million; its shares were traded at around $26.19 with a P/E ratio of 4.1 and P/S ratio of 0.5. The dividend yield of International Shipholding Corp. stocks is 7.6%.ISH is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Net income for the first quarter of 2010 was $10.6 million, a $1.1 million improvement as compared to the same period in 2009. While overall segment performance was marginally below last year s results, the income from the Company s unconsolidated entities, resulting from Dry Bulk s gain of $1.4 million from the sale of its one remaining Panamax Bulk Carrier, reduced depreciation expense of $1.4 million from the extension of the economic life of the U.S. flag Coal Carrier and reduced amortization of $450,000 relating to leasehold improvements. Other items impacting the first quarter 2010 include:Other: Gross profit increased from a $648,000 loss in the first quarter of 2009 to a $1.0 million profit in the first quarter of 2010. This increase was primarily due to foreign currency exchange gains of $380,000 in the first three months of 2010 compared to $374,000 of foreign currency exchange losses during the same period in 2009 and prior policy years insurance reserve adjustments on closed claims of approximately $600,000.
Equity in net income of unconsolidated entities, net of taxes, increased from $961,000 in the first quarter of 2009 to $2.5 million in the first quarter of 2010. The results were driven by our 50% investment in Dry Bulk, which owns 100% of subsidiary companies that currently own two Capesize Bulk Carriers and have two Handymax Bulk Carrier Newbuildings on order for delivery in 2012. For the first quarters of 2010 and 2009, our portion of the earnings of this investment, net of taxes, was $2.2 million and $1.0 million, respectively, with the increase being principally due to Dry Bulk having sold one of its one remaining Panamax vessels in the first quarter 2010. Equity in net income of unconsolidated entities net of taxes, for the first quarter 2010 was further impacted by our 25% investment in Oslo during December 2009. Our portion of the earnings of this investment was $247,000 for the three months ended March 31, 2010, primarily related to the settlement of a derivative contract.
Our working capital (which we define as the difference between our total current assets and total current liabilities) decreased from $41.9 million at December 31, 2009, to $19.1 million at March 31, 2010. This decrease was primarily due to the termination of a direct finance lease on one of our U.S. flag PCTC Vessels. The vessel was redelivered to us in February, 2010 and was reclassified as a capital asset. Cash and cash equivalents increased during the first three months of 2010 by $14.6 million to a total of $62.1 million at March 31, 2010, which includes $20 million of cash (and cash equivalents) held following a draw on our line of credit which was subsequently paid off in the beginning of April 2010. In addition, marketable securities increased during this period to $18.5 million with the purchase of $8.0 million of short-term corporate bonds. The increase in cash and cash equivalents was a result of cash provided by operating activities of $12.5 million, cash provided by financing activities of $62.1 million, offset by cash used by investing activities of $59.9 million. Total current liabilities of $104.4 million as of March 31, 2010 included current maturities of long-term debt of $74.8 million.
Net cash used by investing activities of $59.9 million included capital improvements of $54.2 million, the purchase, net of sales, of short-term corporate bonds of $8.0 million and principal payments received under Direct Financing Leases of $1.7 million. Included in these $54.2 million of capital improvements is $50.3 million for the final installment payment on a Pure Car Truck Carrier delivered in late March 2010. Net cash provided for financing activities of $62.1 million included regularly scheduled debt payments of $4.3 million and cash dividends paid of $3.7 million, more than offset by proceeds from new debt of $70.3 million, including a $46.1 million loan relating to the purchase of the previously mentioned Pure Car Truck Carrier Newbuilding and a $20 million draw on our line of credit that we repaid early in the second quarter of 2010.
In the unanticipated event that our cash flow and capital resources are not sufficient to fund our debt service obligations, we could be forced to reduce or delay capital expenditures, sell assets, obtain additional equity capital, borrow money, or restructure our debt. We believe we have sufficient liquidity despite the recent disruption of the capital and credit markets and believe we can continue to fund working capital and capital investment liquidity needs through cash flow from operations. We have $90.9 million due in 2010, which includes approximately $47 million related to a balloon payment on financing of our PCTC vessel purchased in 2007, $16.6 million due in 2011, $29.0 million due in 2012, $30.6 million due in 2013 and $20.2 million due in 2014. We intend to replace all or part of the balloon payment due this year with long-term financing in 2010.
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