Correcting and replacing press release issued earlier.NEW YORK--(BUSINESS WIRE)--Feb. 22, 1995--OMI announced today that for the fourth quarter ended Dec. 31, 1994, the company incurred a net loss of $30,229,000, or $.99 per share, after provisions for impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. losses, net of tax benefit, of $22,488,700, or $.73 per share. These impairment losses reflect the determination by the company that it was unlikely to profitably operate two of its U.S. flag chemical/product vessels. For the three months ended Dec. 31, 1993, the company had a net loss of $7,935,000, or $.26 per share. The impairment loss of $14,798,000 for one owned chemical/product carrier was measured by the excess of the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of the vessel over its estimated fair value. The company also determined that an impairment loss should be recognized for the forecasted loss from operations of a similar U.S. chemical product carrier which is chartered in on an operating lease Operating Lease A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset. Notes: An operating lease is not capitalized it is accounted for as a rental expense. through 2006. The amount of the loss has been estimated based on forecasted undiscounted cash flows (excluding from lease hire an amount representative of the interest component of the lease agreement) through the lease expiration date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. . International product tankers and Suezmax Suezmax is a naval architecture term for the largest ships capable of transiting the Suez Canal fully loaded, and is almost exclusively used in reference to tankers. Since the canal has no locks, the only serious limiting factor is draft (maximum depth below waterline). vessel rates improved modestly in the fourth quarter. However, the absence of available cargo for the OMI (1) See Open Market. (2) (Open Microprocessor Initiative, Brussels, Belgium) An organization that functions under the umbrella of the European Commission. It funds projects that research and develop advanced microcontroller technologies. COLUMBIA, the company's largest U.S. flagged vessel, a 138,698 deadweight ton (dwt) crude oil tanker which operates in the Alaskan trade, and a severe downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in the U.S. flag dry bulk markets continue unabated un·a·bat·ed adj. Sustaining an original intensity or maintaining full force with no decrease: an unabated windstorm; a battle fought with unabated violence. . Overall the market for U.S. flag ships is facing a more uncertain future, limited in scope by regulation and legislation, and shrinking available markets. OMI initiated a program to streamline its operations by reducing operating and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . The company is in the process of reducing shoreside head count by approximately 20% which will significantly reduce general and administrative expenses in 1995. The net loss for the 1994 fiscal year was $37,865,000, or $1.24 per share, compared to a net loss of $8,747,000 or $.29 per share in the prior year. Revenue for 1994 was $266,796,000, compared to $270,479,000 a year ago. Subsequent to the end of the year, the company sold the MARITIME LAPIS, a jointly owned 1990 built 41,408 dwt dry bulk carrier at a gain which will be reflected in the first quarter of 1995. OMI, a major bulk shipping company, operates in both the domestic and international shipping markets. Its operating fleet currently totals 42 vessels (including four chartered-in tankers), aggregating approximately 3.6 million dwt. One Suezmax tanker, aggregating 149,000 dwt, is on order with delivery scheduled in 1996. The company also has significant investments in other marine related activities, including lightering of large crude carriers in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east and workboat work·boat n. A boat used for work rather than for recreation, transportation, or military purposes. services. -0-
OMI CORP. (OMM:NYSE)
(In thousands, except per share data)
FOR THE THREE MONTHS FOR THE YEAR
ENDED DEC. 31, ENDED DEC. 31
1994 1993 1994 1993
Revenues $68,280 $65,496 $266,796 $270,479 Loss before income taxes(a) 47,396 11,994 60,170 10,477 Benefit for income taxes 17,167 4,059 22,305 1,730 Net loss 30,229 7,935 37,865 8,747 Net loss per share $ .99 $ .26 $ 1.24 $ .29 Average shares outstanding 30,532 30,603 30,417 30,590
(a) After provision for losses due to the impaired value of a vessel
of $14,798 and lease obligation of $19,800 recorded in fourth
quarter 1994.
-0- CONTACT: Paul G. Henning 212/297-2125 |
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