Global Ship Lease Inc New · NYSE:GSL
Global Ship Lease Inc New — Global Ship Lease — Q3 2014 Earnings Presentation
19 slides from Global Ship Lease Inc New's earnings presentation, 2014
Slide 1: Third Quarter 2014 Results Presentation
Third Quarter 2014 Results Presentation
Slide 2: Safe Harbor Statement
Safe Harbor Statement This communication contains forward-looking statements. Forward-looking statements provide Global Ship Lease’s current expectations or forecasts of future events. Forward-looking statements include statements about Global Ship Lease’s expectations, beliefs, plans, objectives, i
Slide 3: Disclaimer
Disclaimer The financial information and data contained in this communication is unaudited and does not conform to the U.S. Securities and Exchange Commission Regulation S-X. Accordingly, such information and data may not be included in, may be adjusted in or may be presented differently in, Global
Slide 4: Global Ship Lease: Q3 2014 Highlights
Global Ship Lease: Q3 2014 Highlights: Immediately accretive acquisition adds $9.4 million to annual EBITDA and between $37.7 and $40.9 million to contracted revenue Revenues – $34.2 million generated for third quarter 2014 Net income – $6.4 million for third quarter 2014, including $8.6 million
Slide 5: GSL Performance
Continued to Demonstrate Strong Results and Stability Throughout the Cycle 175 Timecharter Rate Index Five Year Average Market Timecharter Index 150 Market Cycle 125 100 75 50 25 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 ‘09 ‘10 ‘10 ‘10 ‘10 ‘11 ‘11 ‘11 ‘11 ‘12 ‘12 ‘12 ’12 ‘13 ’13 ‘
Slide 6: Longer Term Coverage
Stable Platform: Full Contract Coverage and Significant Cashflow Visibility Fully contracted fleet, with $896 mm(1) contracted revenues 6.5 years(1) weighted average remaining contract coverage, excluding the two spot vessels Vessel Counterparty TEUs Built Charter Rate ($ / Day) and Duration Ville d
Slide 7: Strategy Going Forward
Strategy Going Forward Charter Strategy and • Maintain quality fleet with primary focus on longer-term charters to established counterparties Operational Risk • Contractual protections, comprehensive insurance, no fuel risk, limited FX risk Management • Selectively diversify charter portfolio to add
Slide 8: Accretive Investment: $55 Million Sale & Leaseback
Accretive Investment: $55 Million Sale & Leaseback In September 2014, reached agreement to purchase an 8,063 TEU vessel from OOCL with timecharter back – 8,063 TEU cellular containership, built 2005 (Korea) – Vessel was delivered and immediately commenced its leaseback to OOCL on October 28, 2014
Slide 9: 8,000 TEU: Flexible Tonnage at Top of Mid-Size Cascade
8,000 TEU: Flexible Tonnage at Top of Mid-Size Cascade # 7,500 – 9,000 TEU Vessels Deployed Deployment of 7,500 – 9,000 TEU Tonnage by Tradelane as at End-2013 v. End-2012¹ Deployment of 7,500 – 9,000 TEU tonnage continues to expand into multiple tradelanes Flexible tonnage at the top of the cas
Slide 10: Supply and Demand Fundamentals Shape Spot Market Charter Rates and Asset Values
Supply and Demand Fundamentals Shape Spot Market Charter Rates and Asset Values Industry Fundamentals Shape Spot Charter Market¹ Outlook for Fundamentals is Improving² Container Trade Growth Trade Growth Cellular Capacity Growth Overall Capacity Growth 20% 260 Containership Fleet Growth Containershi
Slide 11: Mid-Sized & Smaller Ships Provide Most Favorable Mid-Term Opportunities
Mid-Sized & Smaller Ships Provide Most Favorable Mid-Term Opportunities Composition of Global Containerized Trade, 2013¹ Growth by Tradelane¹ Mainlane Trades Non-Mainlane Trades 8.0% Year-Over-Year Growth (%) 13% Mainlane Trades 6.0% Transpacific 4.0% Far East - Europe 39% 13% Transatlantic 2.0% Non
Slide 12: Freight Rates Remain Volatile
Freight Rates Remain Volatile Freight Rate Indices by Tradelane v. Charter Rates1 160 140 Index (100 = January, 2011) 120 100 80 60 40 20 Transpac Asia-Europe North-South Intra-Asia Time Charter Index 0 Q1 2014 Q2 2014 Q4 2011 Q2 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2011 Q2 2011 Q3 2011 Q
Slide 13: Market Opportunity: Spot Rates Under Pressure but Asset Prices at Attractive Levels
Market Opportunity: Spot Rates Under Pressure but Asset Prices at Attractive Levels Spot Market Charter Rates, Secondhand Prices & Newbuilding Prices¹ Commentary 240 Newbuilding prices softened 220 Timecharter Rate Index slightly in Q3 2014 Newbuilding Price Index Spot market charter rates 200 r
Slide 14: Q3 2014 Financials
Q3 2014 Financials oF GLOBAL SHIP LEASE
Slide 15: Financial Results (Unaudited): Income Statement Q3 2014 and 2013
Financial Results (Unaudited): Income Statement Q3 2014 and 2013 $000’s Three months ended September 30, 2014 2013 Operating Revenues Time charter revenue $ 34,224 $ 36,080 Operating Expenses Vessel operating expenses 12,487 11,146 Depreciation 10,042 10,094 General and administrative 1,721 1,490 Ot
Slide 16: Financial Results (Unaudited): Balance Sheet September 30, 2014 and December 31, 2013
Financial Results (Unaudited): Balance Sheet September 30, 2014 and December 31, 2013 September 30, December 31, 2014 2013 $000’s Assets Cash and cash equivalents $ 64,352 $ 24,536 Restricted cash - 3 Accounts receivable 6,554 7,006 Prepaid expenses 404 5,337 Other receivables 1,070 115 Inventory 32
Slide 17: Financial Results (Unaudited): Cash Flow Statement Q3 2014 and 2013
Financial Results (Unaudited): Cash Flow Statement Q3 2014 and 2013 Three months ended September 30, 2014 2013 $000’s Cash Flows from Operating Activities Net income $ 6,718 $ 7,264 Adjustments to Reconcile Net income to Net Cash Provided by Operating Activities Depreciation 10,042 10,094 Amortizati
Slide 18: Concluding Remarks
Concluding Remarks $55.0 million vessel acquisition represents an important milestone in the execution of GSL’s growth strategy – Vessel commenced 36-39 month charter to OOCL immediately upon delivery on October 28, 2014 – Adds $37.7-$40.9 million to total contracted revenues – Expected to generat
Slide 19: Q&A
Q&A oF GLOBAL SHIP LEASE