Maritrans Reports Third Quarter Earnings and Declares Quarterly Dividend.Business Editors TAMPA, Fla.--(BUSINESS WIRE)--Oct. 30, 2002 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 an investor teleconference to discuss the quarter's results. Net income for the quarter ended September 30, 2002 was $1.7 million, or $0.20 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 $30.6 million. This compares with net income of $1.4 million, or $0.14 diluted earnings per share, on revenues of $28.3 million for the quarter ended September 30, 2001. During the quarter, the Company purchased 36,000 shares under its authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: share buyback program. The Company has purchased 2,434,700 shares through September 30, 2002 under the program. Maritrans also declared a quarterly dividend of $0.11 per share, payable on December 4, 2002, to shareholders of record on November 20, 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 increased from $23.3 million to $25.7 million, or 10 percent, over the comparable quarter in 2001. Maritrans enters into various types of charters, some of which involve the customer paying substantially all voyage costs, while other types of charters involve Maritrans paying some or substantially all of the voyage costs. Maritrans monitors the TCE basis because it essentially nets the voyage costs and voyage revenue to yield a measure that is comparable between periods regardless of the types of charters utilized. The spot market in which the Company operates remained depressed during the quarter. The U.S. airline industry continued to experience decreased demand resulting in lower levels of jet fuel consumption. Higher than normal volumes of refined products were being imported into the country resulting from lower international petroleum consumption and low international tanker rates. Increases in contract rates experienced in 2001 have helped to reduce the impact of the weak spot market rates in 2002 and result in an increase in TCE. Several hurricanes hit 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 during September and into October, lowering both revenue and utilization of the Company's fleet for those periods. The rebuilding to a double hull 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 of 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 250 and 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 her married tug INTREPID are on schedule for delivery during the fourth quarter. Having this unit out of service has a negative impact on revenue and 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. . In addition, the Company continues to experience increases in insurance premiums and professional fees. MANAGEMENT'S COMMENTS Stephen A. Van Dyck, Chairman and Chief Executive Officer of Maritrans, commented, "We are pleased to be doing so well with revenues and net income up over last year in a time of difficult market conditions and increased maintenance costs. We remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our long-term outlook." CONFERENCE CALL INFORMATION Maritrans management will host a conference call on October 31, 2002 at 3:00 p.m. Eastern Time to discuss the Company's third quarter results. To access this call, please dial 1-800-833-9611. A replay of the conference call will be available from 5:00 p.m. Eastern Time on Thursday, October 31, 2002 to 5:00 p.m. Eastern Time on Monday, November 4, 2002 and can be accessed by calling 1-800-633-8284 and providing the reservation number 20992655. The conference call will also be webcast live on Maritrans' website, www.maritrans.com, and will be available on the website through Thursday, November 7, 2002. ABOUT MARITRANS Maritrans Inc. is a U.S. based company with a 74-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 3.6 million barrels, with over half of its capacity 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' operating and sourcing decisions, 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 and the general financial, economic, environmental and regulatory conditions affecting the oil and marine transportation industry in general.
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS
($Thousands, Except Per Share Amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 2002 2001
-------- -------- -------- --------
Voyage Revenue $ 30,586 $ 28,276 $ 94,377 $ 91,661
Voyage Costs 4,906 4,995 14,256 16,699
Time Charter Equivalent 25,680 23,281 80,121 74,962
Operating Expense 11,404 10,471 34,973 31,717
Maintenance 4,968 4,036 12,426 11,524
G & A 1,937 1,607 5,930 5,408
Depreciation 4,771 4,483 14,143 13,396
Operating Income 2,600 2,684 12,649 12,917
Other Income 726 654 1,184 2,463
Interest Expense (627) (1,099) (1,988) (4,086)
Income Tax Provision (1,012) (817) (4,442) (4,258)
Net Income $ 1,687 $ 1,422 $ 7,403 $ 7,036
Diluted Earnings Per Share $ 0.20 $ 0.14 $ 0.85 $ 0.66
Diluted Shares Outstanding 8,513 10,498 8,759 10,681
Capital Expenditures $ 10,946 $ 7,089 $ 23,431 $ 10,266
Utilization of Calendar days 77.5% 76.4% 80.9% 83.7%
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
($Thousands)
September 30, December 31,
2002 2001
------------- ------------
(UNAUDITED)
Cash and cash equivalents $ 1,991 $ 3,558
Other current assets 24,377 24,693
Net vessels and equipment 172,605 163,317
Other assets 7,904 8,859
Total assets $ 206,877 $ 200,427
Total current liabilities $ 21,666 $ 22,240
Long-term debt 63,000 32,250
Deferred shipyard costs and other 9,025 13,082
Deferred income taxes 44,785 44,791
Stockholders' equity 68,401 88,064
Total liabilities and stockholders' equity $ 206,877 $ 200,427
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