This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Genco Shipping & Trading Management Discusses Q2 2012 Results - Earnings Call Transcript

At this time, I would like to introduce Gerry Buchanan, the President of Genco Shipping & Trading.

Robert Gerald Buchanan

Good morning, and welcome to Genco's second quarter 2012 Conference Call. And with me today is Peter Georgiopoulos, our Chairman; and John Wobensmith, our Chief Financial Officer. I'll begin today's call by discussing our second quarter highlights as outlined on Slide 3 of the presentation. I will then turn the call over to John to review our financial results for the 3-month period ended June 30, 2012. Following this, I will discuss the industry current fundamentals. John, Peter and I will then be happy to take the questions.

During the second quarter and year-to-date, Genco has maintained an opportunistic time charter approach while taking proactive measures to preserve a strong financial platform in a challenging drybulk market. By maintaining the ability to benefit from future rate increases, and strengthening the company's financial flexibility, we have enhanced our position to drive future performance when market conditions improve.

Turning to Slide 5, Genco recorded a net loss of $27.7 million or $0.65 basic and diluted loss per share for the 3 months ended June 30, 2012. Genco's cash position excluding Baltic Trading Limited was $251.4 million, which reflects the cash flows generated by a large high-quality fleet. During the second quarter, we maintained our focus on signing vessels to short-term or spot-market-related contracts with reputable, multinational companies, preserving the company's ability to generate significant operating leverage and a rising freight rate environment. Additionally, we continue to take proactive measures to increase our financial strength and flexibility. Specifically, we recently amended each of our 3 credit facilities under favorable terms, which John will discuss in more detail later in the call.

Moving to Slide 6, we provide a summary of our fleet. Genco's modern and diversed fleet positions the company well to continue to provide service, adheres to the highest operational standards and take advantage of the positive long-term demand for the global transportation of iron ore, steel and other core commodities. Excluding bulky trading fleet, we currently own a fleet of 53 drybulk vessels, consisting of 9 Capesize, 8 Panamax, 17 Supramax, 6 Handymax and 13 Handysize vessels with a total carrying capacity of approximately 3,810,000 deadweight. Importantly, the average change of our fleet is 7.2 years, well below the industry average of approximately 11 years.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,135.72 +38.82 0.21%
S&P 500 2,101.04 +2.51 0.12%
NASDAQ 4,982.8090 +15.6680 0.32%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs