Federal Income Tax

The increase in the Company’s effective tax rate reflects the establishment of a valuation allowance against all of the deferred tax assets generated during the fourth quarter of 2011. The Company’s deferred tax liability balance is at levels that will continue to require a valuation reserve on all future deferred tax assets.

Unconsolidated Entities

The results from the Company’s investment in 50% or less owned ventures decreased in the three months ended December 31, 2011, when compared to the same period in 2010. The 2010 results reflect a non-recurring income tax benefit of $3.9 million as well as the results of Dry Bulk which was purchased earlier in 2011. The 2011 fourth quarter results reflect the results of our investment in the Mini-Bulk Venture.

Balance Sheet

The Company’s working capital at December 31, 2011, was approximately $19.3 million, an improvement of $7.5 million from September 30, 2011. This was primarily driven by a temporary draw from the Company’s line of credit of $9.5 million which was repaid during January of 2012. Cash, cash equivalents, and restricted cash was approximately $30.3 million at 2011 year end. The restricted cash balance of approximately $8.9 million was used to reduce the balance of the Yen-denominated loan during January, 2012. During the three month period ended December 31, 2011, the Company finalized its equity investment in the multi-purpose ice strengthened vessel placed on charter to the Military Sealift Command in January, 2012. The additional contribution in the quarter was approximately $3.5 million. The Company generated approximately $15.4 million in cash from its operating activities while paying debt principal of approximately $8.8 million over the quarter.

Dividend Declaration

The Company’s Board of Directors authorized the payment of a $0.375 dividend for each share of common stock owned on the record date of February 15, 2012, payable on March 1, 2012.

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