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Global Ship Lease Reports Results For The Fourth Quarter Of 2012

Stocks in this article: GSL

LONDON, March 11, 2013 (GLOBE NEWSWIRE) -- Global Ship Lease, Inc. (NYSE:GSL), a containership charter owner, announced today its unaudited results for the three months and year ended December 31, 2012.

Fourth Quarter and Year To Date Highlights

- Reported revenue of $36.2 million for the fourth quarter 2012 and $153.2 million for the full year

- Reported net income of $8.1 million for the fourth quarter 2012, after a $4.7 million non-cash interest rate derivative mark-to-market gain; net income for full year 2012 was $31.9 million, after a $9.7 million non-cash mark-to-market gain

- Normalized net income (1) was $3.5 million for the fourth quarter and $22.2 million for the full year 2012

- Generated $23.3 million of Adjusted EBITDA (1) for the fourth quarter 2012, and $102.2 million for the full year

- Agreed with lenders in November 2012 to waive the requirement to test the Leverage Ratio until December 1, 2014 and also to include all secured vessels in the test, whether subject to a charter or not

- Repaid $11.1 million of bank debt during the fourth quarter of 2012; repaid $57.9 million in the year ended December 31, 2012 and $173.4 million since the fourth quarter 2009

Ian Webber, Chief Executive Officer of Global Ship Lease, stated, "On the strength of our stable business model and a 99% utilization rate, we generated Adjusted EBITDA of $23.3 million for the fourth quarter and continued to de-lever our balance sheet, repaying an additional $11.1 million of debt. With all of our 17 vessels fully employed on time charters, we generated Adjusted EBITDA of $102.2 million during 2012 and utilized our sizeable cash flow to pay down a total of $57.9 million of debt."

Mr. Webber continued, "With an average remaining lease term of over seven years for our fleet and contracted revenue totaling $1 billion, we remain well insulated from the current charter rate environment. Further, with supportive credit markets and having secured relief from our loan-to-value test until December 2014, our top priority is to strengthen our capital structure and enhance our financial flexibility to create incremental value for our shareholders. In the meantime, we will continue to utilize our cash flow to further de-lever our balance sheet."

SELECTED FINANCIAL DATA – UNAUDITED
         
(thousands of U.S. dollars)
         
  Three months ended Three months ended Year ended Year ended
  December 31, 2012 December 31, 2011 December 31, 2012 December 31, 2011
         
Revenue  36,168 39,714 153,205 156,268
Operating Income 13,249 16,503 61,832 49,927
Net Income 8,121 10,860 31,928 9,071
Adjusted EBITDA (1) 23,315 26,579 102,175 103,703
Normalized Net Income (1) 3,471 6,811 22,203 23,597
         
(1) Adjusted EBITDA and Normalized net income are non-US Generally Accepted Accounting Principles (US GAAP) measures, as explained further in this press release, and are considered by Global Ship Lease to be useful measures of its performance. Reconciliations of such non-GAAP measures to the interim unaudited financial information are provided in this Earnings Release.

Revenue and Utilization

The 17 vessel fleet generated revenue from fixed rate long-term time charters of $36.2 million in the three months ended December 31, 2012, down $3.5 million on revenue of $39.7 million for the comparative period in 2011 mainly due to lower levels of charterhire on two vessels for new charters which commenced in late September 2012. The new daily rate is $9,962 compared to $28,500 previously.  There were 16 days offhire, including 10 for a scheduled drydocking, up four on the prior period.  During the three months ended December 31, 2012, there were 1,564 ownership days, the same as the comparable period in 2011. The 16 days offhire in the three months ended December 31, 2012 gives a utilization of 99.0%.  In the comparable period of 2011 utilization was 99.2%.

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