Administrative and general expenses were lower by $735,000 for the quarter ended June 30, 2012, compared to the same period in 2011. Compensation expenses were lower as income bonus levels were not achieved for the quarter.

Gain on Purchase

During the quarter the Company reacquired the Jones Act Molten Sulphur Carrier which was divested in 2007 in a sale leaseback transaction. The unamortized deferred gain from the 2007 sale was recognized in this quarter at reacquisition.

Interest and Other

During the three month period ended June 30, 2012, the Japanese Yen strengthened in relation to the U.S. Dollar from 82.82 to 79.81, producing a non-cash charge to earnings of $1.7 million. Year to date, the yen has depreciated in relation to the U.S. Dollar and earnings have been favorably impacted by $1.9 million.

Unconsolidated Entities

The results from the Company’s investments in 50% or less owned ventures increased in the three months ended June 30, 2012, when compared to the same period in 2011. The results from the 25% investment in the Company owning ten mini-bulkers had non-recurring start up charges that were reported in the 2011 period, while the current year’s results are due to a favorable out of period adjustment related to an effective interest rate swap.

Balance Sheet

The Company’s working capital at June 30, 2012, was approximately $10.5 million, a decrease of $13.9 million from March 31, 2012. Cash and cash equivalents reflected a balance of $21.2 million. The purchase of the Jones Act Sulphur Carrier during the quarter for approximately $23 million was funded using the Company’s available cash.

Dividend Declaration

The Company’s Board of Directors authorized the payment of a $0.25 dividend payable on September 4, 2012, for each share of common stock owned on the record date of August 16, 2012. All future dividend declarations and amounts remain subject to the discretion of International Shipholding Corporation’s Board of Directors.

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