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TheStreet Open House

Seaspan's CEO Discusses Q3 2011 Results - Earnings Call Transcript

I would also like to remind you that during this call, we may discuss certain non-GAAP financial measures including adjusted EBITDA, cash available for distribution to common shareholders, normalized net earnings, normalized earnings per share and normalized converted earnings per share. In regards to such financial measures and for reconciliation of such measures to the most closely comparable U.S. GAAP measures, please refer to our earnings release.

I will now pass the call over to Gerry, who will discuss our highlights for the quarter and other recent developments.

Gerry Wang

Thank you, Sai. Good morning to everybody. Please turn to slide three of the website presentation. Seaspan’s business continue to perform as expected in the third quarter despite broader uncertainty in the global economy. I would like to highlight five points that speak to the ongoing stability and growth in our business.

First, our operating fleet remains fully employed on fixed-rate time charges without any major off-hire incidence. We achieved a utilization rate of 99.8% for the quarter and grew revenues, cash available for distribution and normalized net income by 39%, 22.5% and 30.6%, respectively for the quarter compared with results for the third quarter of 2010.

Second, we continue to successfully implement our newbuilding program. We expended our fully time charter fleet by taking delivery of three newbuildings, the Budapest Bridge to K-Line, the COSCO Development and COSCO Harmony to COSCON, all secured on long-term contracts of 12 years.

We now have 65 vessels in operation with four 13100 TEU vessels remaining to be delivered to COSCO through the first half of 2012 and three 10000 TEU vessels remaining to be delivered to Hanjin in 2014.

Third, our Board declared another dividend on our common stock and our Series C preferred shares. In total, we have declared cumulative common stock dividends of $7.5 per share since our IPO in 2005 and a cumulative preferred stock dividend of a $1.80 per share since we first issued the shares in January of this year.

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