Administrative and general expenses were approximately $2.5 million higher for the quarter ended December 31, 2012, compared to the same period in 2011. The variance was primarily due to non-recurring expenses associated with the UOS acquisition, as well as employee bonus accruals, not accrued during the 2011 comparable period.
Gain on Sale of Other Assets
On October 22, 2012, the Company sold a vessel. The transaction generated a book reportable gain of $12.2 million.
Interest and Other
Higher interest expense reflects one-time costs associated with the UOS acquisition partially offset by lower outstanding debt service. During the three month period ended December 31, 2012, the Japanese Yen weakened in relation to the U.S. Dollar from 77.93 to 86.74, producing a current period non-cash exchange gain of $4.7 million.
The December 31, 2012, balance sheet reflects the UOS acquisition. The intangible asset balance of $45.8 million primarily reflects valuation mostly attributable to the contracts of the UOS company. The goodwill balance of $2.7 million primarily reflects the implied premium paid for the acquisition of UOS. The Company’s working capital at December 31, 2012, was approximately $12.0 million. The cash and cash equivalent balance was approximately $19.9 million at year ending December 31, 2012.
The Company’s Board of Directors declared a $0.25 dividend payable on March 4, 2013, for each share of common stock owned on the record date of February 19, 2013. All future dividend declarations and amounts remain subject to the discretion of the Company’s Board of Directors.
The Company’s updated guidance for 2013 of net income between $10 and $12 million and EBITDA between $63 and $67 million reflects a revised lower outlook for the Dry Bulk Carrier segment, the re-delivery of the ice-strengthened vessel from the MSC contract, an additional sale-leaseback transaction and a slowdown in the weakening of the Yen. The Company currently anticipates that approximately 68% of its 2013 revenues will be generated by fixed contracts. Capital expenditures for 2013 are currently estimated at approximately $21 million of which approximately $14 million will be expended for regularly scheduled upgrading and maintenance of vessels in the current fleet. The Company set a $1.00 dividend target for the 2013 fiscal year.