International Shipholding Corporation (NYSE:ISH) today announced financial results for the quarter ended December 31, 2013.
Fourth Quarter 2013 Highlights
- Reported net income of $16.9 million for the three months ended December 31, 2013, which included a non-cash foreign currency exchange gain of $1.4 million and a non-cash gain of $14.0 million on the reversal of the Company’s tax valuation allowance
- Concluded a multi year extension of its contract with The Mosaic Company
- Invested in a Joint Venture to own 30% of two International flag Chemical Tankers scheduled for delivery in the first quarter of 2014
- Entered into a time charter on its Capesize Bulk Carrier through 2014.
- Fixed the currency risk of its Yen-denominated loan facility at an exchange rate of 102.53 per US Dollar
The Company reported net income of $16.9 million for the fourth quarter of 2013, which included non-operating gains of $1.4 million from fixing its Yen-denominated loan facility and $14.0 million from the reversal of the Company’s Federal tax valuation allowance. Excluding these non-operating items, net income for the fourth quarter was $1.5 million as compared to a 2012 fourth quarter loss, excluding non-operating items, of $5.4 million.Mr. Niels M. Johnsen, Chairman and Chief Executive Officer, stated, “In 2013, we have made significant progress in strengthening our balance sheet, identifying attractive opportunities to solidify our leadership position in the niche segments in which we operate, and securing our strong and stable cash flows from medium to long-term contracts with high-quality counterparties. We successfully accessed the capital markets twice in 2013, raising a total of $56.6 million through two preferred stock offerings. This new capital enabled us to reactivate a Jones Act tug/barge unit, acquire the contract for a newbuilding 'eco' Handysize Bulkcarrier, and invest in a joint venture for two Chemical Tankers. Finally, we have continued to sign and renew medium to long-term contracts with creditworthy counterparties like The Mosaic Company, with whom we have reached a multi year extension of the contract, maintaining our strong contract coverage.