Maritrans Reports Third Quarter Earnings and Declares Quarterly Dividend.Business Editors TAMPA, Fla.--(BUSINESS WIRE)--Oct. 29, 2003 Maritrans Inc. (NYSE NYSE See: New York Stock Exchange :TUG), a leading U.S. flag marine petroleum transport company, today announced its third quarter financial results, declared its quarterly dividend and announced its quarterly investor teleconference. Net income for the quarter ended September 30, 2003, was $8.6 million, or $1.02 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 $33.7 million. These results include in net income the reversal of an income tax reserve of $7.7 million, or $0.92 diluted earnings per share, in the quarter. For the quarter ended September 30, 2002, the Company reported net income of $1.7 million, or $0.20 diluted earnings per share, on revenues of $30.6 million 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 increased 9 percent to $28.0 million for the quarter ended September 30, 2003, from $25.7 million in the comparable quarter in 2002. 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 December 3, 2003, to shareholders of record on November 19, 2003. The Company records reserves for income taxes based on the estimated amounts that it will likely have to pay based on its taxable net income. The Company periodically reviews its position based on the best available information and adjusts its income tax reserve accordingly. In the quarter ended September 30, 2003, the Company reduced its income tax reserve by $7.7 million. Most of the decrease 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 $.92 per share increase in net income for the quarter. There was no effect on cash flow or income from operations as a result of this reduction. During the quarter, the Company's exposure to the spot market remained limited as the majority of the Company's fleet was deployed under contract business. The Company will continue to have high contract utilization, as many of the current long-term contracts are not up for renewal until 2005. Both voyage and maintenance costs were higher than the comparable quarter in 2002 and the Company expects these costs to remain higher than in previous periods due to increased port charges and costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc compliance with regulations and customer demands. The barge barge, large boat, generally flat-bottomed, used for transporting goods. Most barges on inland waterways are towed, but some river barges are self-propelled. There are also sailing barges. OCEAN STATES entered the shipyard in early September for her double-hull rebuild and the installation of a 30,000-barrel mid-body insertion insertion n. the addition of language at a place within an existing typed or written document, which is always suspect unless initialled by all parties. , which the Company expects to be completed during the second quarter of 2004. Simultaneously, the Company will be continuing its tugboat tugboat, small, strongly built vessel, used to guide large oceangoing ships into and out of port and to tow barges, dredging and salvage equipment, and disabled vessels. rebuild program with the refurbishment re·fur·bish tr.v. re·fur·bished, re·fur·bish·ing, re·fur·bish·es To make clean, bright, or fresh again; renovate. re·fur of the tug HONOUR. Out-of-service time from both the OCEAN STATES double-hull rebuild and other scheduled maintenance time resulted in lower utilization compared to the first two quarters of 2003. The Company believes the lower utilization will continue in the fourth quarter of 2003. As previously announced, the Company also entered into new financing agreements Financing Agreements In the context of project financing, the documents which provide the project financing and sponsor support for the project as defined in the project contracts. during the quarter. These agreements replace $36.8 million of its existing term debt. The new debt facility consists of two pieces: $7.3 million with a 5-year amortization and $29.5 million with a 9.5-year amortization and a 50 percent balloon payment The final installment of a loan to be paid in an amount that is disproportionately larger than the regular installment. When a loan is made, repayment of the principal, which is the amount of the loan, plus the interest that is owed on it, is divided into installments due at at the end of the term. The new debt accrues interest at an average fixed rate of 5.53 percent, replacing existing term debt that matured through 2007 and carried an average current floating rate of 3.22 percent. The new debt is collateralized by two barges and three tugs. The Company expensed unamortized fees related to the prior debt resulting in an after-tax charge of approximately $0.02 per share. In the third quarter of 2002, the Company recognized an after-tax gain of approximately $0.04 per share for a litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. reward received. MANAGEMENT'S COMMENTS Stephen A. Van Dyck, Chairman of Maritrans, commented, "With our fifth barge now being rebuilt with double hulls A double hull is a ship hull design and construction method where the bottom and sides of the ship have two complete layers of watertight hull surface: one outer layer forming the normal hull of the ship, and a second inner hull which is somewhat further into the ship, perhaps a and additional cargo capacity, Maritrans remains committed to providing an OPA-compliant fleet that meets the needs of our customers. We believe that, except for our rebuilding program, there are no new barges or product tankers over 200,000 barrels currently under construction or under contract in American shipyards. Our position in the market remains strong and we continue to believe Maritrans is well-poised for long-term shareholder returns." Philip J. Doherty, Chief Executive Officer of Maritrans, commented, "As expected, we delivered positive results in the third quarter despite the challenges. Our fleet experienced high out-of-service time due to planned rebuilding and maintenance, and our costs continue to increase as we meet the demands of our ever-changing environment. We are working very hard to manage these changes in the marketplace while we generate strong operating and financial results." CONFERENCE CALL INFORMATION Maritrans' management will host a conference call on October 30, 2003, at 10:00 a.m. eastern time to discuss the Company's third quarter results. To access this call, please dial 1-800-847-7729. 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 Thursday, October 30, 2003, to 5:00 pm eastern time on Thursday, November 6, 2003, and providing the reservation number 21161724. The conference call will also be webcast live on Maritrans' website, www.maritrans.com, and will be available on the website through Thursday, November 6, 2003. 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 Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
-------- -------- -------- --------
Voyage Revenue $ 33,684 $ 30,586 $105,825 $ 94,377
Voyage Costs 5,658 4,906 18,519 14,256
Time Charter Equivalent $ 28,026 $ 25,680 $ 87,306 $ 80,121
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS
($ Thousands, Except Per Share Amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
-------- -------- -------- --------
Voyage Revenue $ 33,684 $ 30,586 $105,825 $ 94,377
Voyage Costs 5,658 4,906 18,519 14,256
Time Charter Equivalent 28,026 25,680 87,306 80,121
Operating Expense 12,592 11,404 36,688 34,973
Maintenance 6,094 4,968 16,105 12,426
G & A 2,079 1,937 6,364 5,930
Depreciation 5,216 4,771 15,495 14,143
Operating Income 2,045 2,600 12,654 12,649
Other Income 197 726 1,690 1,184
Interest Expense (809) (627) (1,906) (1,988)
Income Tax Provision 7,170 (1,012) 3,098 (4,442)
Net Income $ 8,603 $ 1,687 $ 15,536 $ 7,403
Diluted Earnings Per Share $ 1.02 $ 0.20 $ 1.84 $ 0.85
Diluted Shares Outstanding 8,408 8,513 8,427 8,759
Capital Expenditures $ 6,894 $ 10,946 $ 14,880 $ 23,431
Utilization of Calendar days 82.2% 77.5% 86.2% 80.9%
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
($ Thousands)
-----------
September 30, 2003 December 31, 2002
------------------ -----------------
Cash and cash equivalents $ 2,387 $ 239
Other current assets 26,406 26,577
Net vessels and equipment 175,496 176,861
Other assets 6,818 7,880
Total assets $ 211,107 $ 211,557
Current portion of debt $ 2,084 $ 5,750
Total other current liabilities 19,835 13,249
Long-term debt 54,706 63,000
Deferred shipyard costs and other 10,439 10,739
Deferred income taxes 41,732 49,432
Stockholders' equity 82,311 69,387
Total liabilities and
stockholders' equity $ 211,107 $ 211,557
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