Maritrans Reports Annual and Fourth Quarter Earnings and Declares Quarterly Dividend.Business Editors TAMPA, Fla.--(BUSINESS WIRE)--Feb. 9, 2004 Maritrans Inc. (NYSE NYSE See: New York Stock Exchange : TUG), a leading U.S. flag marine petroleum transport company, today announced its annual and fourth quarter financial results, declared its quarterly dividend and announced its quarterly investor teleconference. Net income for the quarter ended December December: see month. 31, 2003, was $3.2 million, or $0.38 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , on revenues of $32.4 million. In the fourth quarter of 2003, the Company reversed a bad debt reserve related to a note receivable note receivable A debt due from borrowers and evidenced by a written promise of payment. Note receivable, an entry on the asset side of many corporate balance sheets, indicates the dollar amount of loans due to be repaid by borrowers. equivalent to approximately $0.33 diluted earnings per share, net of the related taxes. The previously reserved note receivable was repaid to Maritrans in January January: see month. 2004. The reversal of the reserve is included in other income. For the quarter ended December 31, 2002, the Company reported net income of $2.1 million, or $0.25 diluted earnings per share, on revenues of $34.6 million. Net income for the year ended December 31, 2003, was $18.7 million, or $2.22 diluted earnings per share, on revenues of $138.2 million. In addition to the note receivable reserve reversal, the Company reduced its income tax reserve by $7.7 million in the third quarter of 2003. Most of the reduction resulted from income tax reserves related to the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of Maritrans Partners LP to Maritrans Inc. in 1993. This reversal resulted in a $0.92 per share increase in net income during the year. There was no effect on cash flow or income from operations as a result of this increase. For the year ended December 31, 2002, the Company reported net income of $9.5 million, or $1.10 diluted earnings per share, on revenues of $129.0 million. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the year ended December 31, 2003 was $13.7 million compared to $16.6 million for the year ended December 31, 2002. On a Time Charter Equivalent (TCE TCE trichloroethylene. TCE Environment A volatile chlorinated hydrocarbon that boils at 88ºC and is highly soluble–1000 ppm in water, with various industrial uses Toxicity Peripheral neuropathy, carcinogenic. ) basis, a commonly used industry measure where direct voyage VOYAGE, marine law. The passage of a ship upon the seas, from one port to another, or to several ports. 2. Every voyage must have a terminus a quo and a terminus ad quem. costs are deducted de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. from revenue, TCE revenue decreased $1.9 million, or 7 percent, from $29.1 million for the quarter ended December 31, 2002 to $27.2 million for the quarter ended December 31, 2003. TCE revenue was $114.5 million for the year ended December 31, 2003 compared to $109.2 million for the year ended December 31, 2002, an increase of $5.3 million or 5 percent. TCE revenue is a non-GAAP financial measure and a reconciliation of TCE revenue to revenue calculated in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). is attached. Maritrans also declared a quarterly dividend of $0.11 per share, payable on March 10, 2004, to shareholders of record on February February: see month. 27, 2004. During the fourth quarter, the Company experienced lower overall utilization as a result of the OCEAN STATES being in the shipyard for her double-hull rebuild in addition to planned maintenance events on other fleet vessels. Vessels worked primarily for contract customers in the quarter and the Company had very little exposure to the spot market. Operating income declined due to higher levels of maintenance costs, higher crew and insurance costs, and higher overhead expenses. The Company anticipates these trends to continue throughout 2004. MANAGEMENT'S COMMENTS Philip Philip, tetrarch of Ituraea Philip, d. A.D. 34, tetrarch of Ituraea, son of Herod the Great. He was perhaps the ablest of the Herod dynasty. He is mentioned in the Gospel of St. Luke. J. Doherty
Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. strength of these three barges. The Company has acted in the first quarter of 2004 to make these repairs and enhancements and the vessels have returned or are in the process of returning to service. As a result we have experienced out of service time that will lower our first quarter results. We have used these enhanced designs with the class of vessels currently under construction, and remain confident in our rebuilding designs and processes." Stephen A. Van Dyck, Chairman of Maritrans, commented, "We believe we are effectively balancing the out of service time associated with our double-hull rebuilding program with the needs of our customers. Because our results are driven by our utilization, we are foregoing current operating income as we tackle these rebuilds. However, we believe that we are creating excellent value in this OPA-compliant fleet. Our position in the market is growing stronger with time as no other U.S. marine petroleum transport provider is undertaking such an aggressive rebuilding program as Maritrans. This, combined with the benefits of our long-term relationships with our large customers, distinguishes us from our competitors. We are investing in our future today and believe this will result in long-term returns for our shareholders." CONFERENCE CALL INFORMATION Maritrans' management will host a conference call on February 10, 2004, at 10:00 a.m. eastern time to discuss the Company's fourth quarter results. To access this call, please dial 1-800-731-1045. A replay of the call may be accessed by dialing 1-800-633-8284 and will be available from 12:00 pm eastern time on Tuesday, February 10, 2004, to 5:00 pm eastern time on Tuesday, February 17, 2004, and providing the reservation number 21183827. The conference call will also be webcast live on Maritrans' website, www.maritrans.com, and will be available on the website through Tuesday, February 17, 2004. ABOUT MARITRANS Maritrans Inc. is a U.S. based company with a 75-year commitment to building and operating petroleum transport vessels for the U.S. domestic trade. Maritrans owns and operates one of the largest fleets serving the U.S. coastwise coast·wise adv. & adj. Along, by way of, or following a coast: The winds blew coastwise. Coastwise winds contributed to the storm. Adj. 1. trade. The Maritrans fleet currently consists of four oil tankers and eleven oceangoing o·cean·go·ing adj. Made or used for ocean voyages. Adj. 1. oceangoing - used on the high seas; "seafaring vessels" seafaring, seagoing marine - relating to or characteristic of or occurring on or in the sea married tug/barge units with an aggregate fleet capacity of approximately 3.6 million barrels. Nearly 60 percent of its capacity is double-hulled. Maritrans is headquartered in Tampa, Florida “Tampa” redirects here. For other uses, see Tampa (disambiguation). Tampa is a United States city in Hillsborough County, on the west coast of Florida. It serves as the county seat for Hillsborough County.GR6. , and maintains an office in the Philadelphia area that supports the Company's Northeast crude oil lightering operations. The common stock of Maritrans Inc. is listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol "TUG." SAFE HARBOR Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. STATEMENT The information in this news release includes certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . These statements involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, growth, performance, earnings per share or achievements to be materially different from that expressed in or implied by such forward-looking statements. These statements are based on assumptions the Company believes are reasonable, but a variety of factors could cause the Company's actual results, goals, targets or objectives to differ materially from those contemplated, projected, forecast, estimated, anticipated, planned or budgeted. Such factors include, among others, changes in oil companies' decisions as to the type and origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real point of the crude that it processes, changes in the amount of imported petroleum products, competition for marine transportation, domestic oil consumption, the continuation of federal law restricting United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. point-to-point maritime shipping to U.S. vessels (the Jones Act), demand for petroleum products, future spot market rates, changes in interest rates, the effect of war or terrorists activities and the general financial, economic, environmental and regulatory conditions affecting the oil and marine transportation industry in general.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
($ Thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
-------- ------- -------- --------
Voyage Revenue $32,380 $34,610 $138,205 $128,987
Voyage Costs 5,202 5,498 23,721 19,755
Time Charter Equivalent $27,178 $29,112 $114,484 $109,232
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS
($ Thousands, Except Per Share Amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
------- ------- -------- --------
Voyage Revenue $32,380 $34,610 $138,205 $128,987
Voyage Costs 5,202 5,498 23,721 19,755
Time Charter Equivalent 27,178 29,112 114,484 109,232
Operating Expense 12,417 11,572 49,105 46,544
Maintenance 6,256 6,662 22,361 19,088
G & A 2,188 1,929 8,552 7,859
Depreciation 5,263 4,994 20,758 19,137
Operating Income 1,054 3,955 13,708 16,604
Other Income 4,706 34 6,396 1,218
Interest Expense 552 612 2,458 2,600
Pre-tax income 5,208 3,377 17,646 15,222
Income Tax Provision (Benefit) 2,009 1,266 (1,089) 5,708
Net Income $ 3,199 $ 2,111 $ 18,735 $ 9,514
Diluted Earnings Per Share $ 0.38 $ 0.25 $ 2.22 $ 1.10
Diluted Shares Outstanding 8,424 8,464 8,427 8,684
Capital Expenditures $10,496 $ 9,250 $ 25,376 $ 32,681
Utilization of Calendar days 78.8% 84.9% 84.3% 81.9%
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
($ Thousands)
-----------
December 31, 2003 December 31, 2002
----------------- -----------------
Cash and cash equivalents $ 3,614 $ 239
Other current assets 24,417 26,577
Net vessels and equipment 180,728 176,861
Other assets 11,770 7,880
Total assets $ 220,529 $ 211,557
Current portion of debt $ 2,533 $ 5,750
Total other current liabilities 18,412 13,249
Long-term debt 57,560 63,000
Deferred shipyard costs and
other 9,702 10,739
Deferred income taxes 47,148 49,432
Stockholders' equity 85,174 69,387
Total liabilities and
stockholders' equity $ 220,529 $ 211,557
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