GENCO SHIPPING & TRADING LTD [GNK] Filings

10-Q 1 gnk-20230930x10q.htm 10-Q

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

⌧

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

◻

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-33393

GENCO SHIPPING & TRADING LIMITED

(Exact name of registrant as specified in its charter)

Republic of the Marshall Islands

98-0439758

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

299 Park Avenue, 12th Floor, New York, New York 10171

(Address of principal executive offices) (Zip Code)

(646) 443-8550

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of exchange on which registered
Common stock, par value $0.01 per share	GNK	New York Stock Exchange (NYSE)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ⌧	Accelerated filer ◻	Non-accelerated filer ◻	Smaller reporting company ☐
			Emerging growth company ◻

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ⌧

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ⌧ No ◻

The number of shares outstanding of each of the issuer’s classes of common stock, as of November 8, 2023: Common stock, par value $0.01 per share — 42,538,665 shares.

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Genco Shipping & Trading Limited

			Page

	PART I — FINANCIAL INFORMATION

Item 1.	Financial Statements (unaudited)		4

	a)	Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022	4

	b)	Condensed Consolidated Statements of Operations for the Three and Nine Months ended September 30, 2023 and 2022	5

	c)	Condensed Consolidated Statements of Comprehensive (Loss) Income for the Three and Nine Months ended September 30, 2023 and 2022	6

	d)	Condensed Consolidated Statements of Equity for the Three and Nine Months ended September 30, 2023 and 2022	7

	e)	Condensed Consolidated Statements of Cash Flows for the Nine Months ended September 30, 2023 and 2022	9

	f)	Notes to Condensed Consolidated Financial Statements	10

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		25

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		50

Item 4.	Controls and Procedures		51

	PART II —OTHER INFORMATION

Item 1A.	Risk Factors		51

Item 5.	Other Information		52

Item 6.	Exhibits		53

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Website Information

We intend to use our website, www.GencoShipping.com, as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in our website’s Investor section. Accordingly, investors should monitor the Investor portion of our website, in addition to following our press releases, filings with the U.S. Securities and Exchange Commission (the “SEC”), public conference calls, and webcasts. To subscribe to our e-mail alert service, please submit your e-mail address at the Investor Relations Home page of the Investor section of our website. The information contained in, or that may be accessed through, our website is not incorporated by reference into or a part of this document or any other report or document we file with or furnish to the SEC, and any references to our website are intended to be inactive textual references only.

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Genco Shipping & Trading Limited

Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022

(U.S. Dollars in thousands, except for share and per share data)

(Unaudited)


	September 30,		December 31,
	2023		2022

Assets
Current assets:
Cash and cash equivalents	$	46,259	$	58,142
Restricted cash		5,643		5,643
Due from charterers, net of a reserve of $2,516 and $2,141, respectively		19,522		25,333
Prepaid expenses and other current assets		10,162		8,399
Inventories		27,567		21,601
Fair value of derivative instruments		2,369		6,312
Total current assets		111,522		125,430

Noncurrent assets:
Vessels, net of accumulated depreciation of $284,693 and $303,098, respectively		939,749		1,002,810
Deferred drydock, net of accumulated amortization of $19,431 and $15,456 respectively		32,982		32,254
Fixed assets, net of accumulated depreciation and amortization of $7,430 and $6,254, respectively		7,435		8,556
Operating lease right-of-use assets		2,994		4,078
Restricted cash		315		315
Fair value of derivative instruments		—		423
Total noncurrent assets		983,475		1,048,436

Total assets	$	1,094,997	$	1,173,866

Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses	$	27,428	$	29,475
Deferred revenue		6,534		4,958
Current operating lease liabilities		2,266		2,107
Total current liabilities:		36,228		36,540

Noncurrent liabilities:
Long-term operating lease liabilities		2,386		4,096
Long-term debt, net of deferred financing costs of $4,756 and $6,079, respectively		139,994		164,921
Total noncurrent liabilities		142,380		169,017

Total liabilities		178,608		205,557

Commitments and contingencies

Equity:
Common stock, par value $0.01; 500,000,000 shares authorized; 42,536,983 and 42,327,181 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively		425		423
Additional paid-in capital		1,558,541		1,588,777
Accumulated other comprehensive income		2,257		6,480
Accumulated deficit		(646,055)		(628,247)
Total Genco Shipping & Trading Limited shareholders’ equity		915,168		967,433
Noncontrolling interest		1,221		876
Total equity		916,389		968,309
Total liabilities and equity	$	1,094,997	$	1,173,866

See accompanying notes to Condensed Consolidated Financial Statements.

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Genco Shipping & Trading Limited

Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2023 and 2022

(U.S. Dollars in Thousands, Except for Earnings Per Share and Share Data)

(Unaudited)


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Revenues:
Voyage revenues	$	83,361	$	135,970	$	268,309	$	409,961

Total revenues		83,361		135,970		268,309		409,961

Operating expenses:
Voyage expenses		34,256		39,496		100,522		110,420
Vessel operating expenses		24,746		22,090		71,725		78,567
Charter hire expenses		2,026		6,952		6,731		19,633
General and administrative expenses (inclusive of nonvested stock amortization expense of $1,397, $840, $4,175 and $2,356, respectively)		6,585		5,911		21,267		18,334
Technical management fees		973		761		3,084		2,378
Depreciation and amortization		17,026		15,582		49,762		44,162
Impairment of vessel assets		28,102		—		28,102		—

Total operating expenses		113,714		90,792		281,193		273,494

Operating (loss) income		(30,353)		45,178		(12,884)		136,467

Other income (expense):
Other (expense) income		(100)		(2,146)		(298)		617
Interest income		588		292		1,877		377
Interest expense		(1,999)		(2,276)		(6,158)		(6,923)

Other expense, net		(1,511)		(4,130)		(4,579)		(5,929)

Net (loss) income	$	(31,864)	$	41,048		(17,463)		130,538
Less: Net income attributable to noncontrolling interest		140		220		345		639
Net (loss) income attributable to Genco Shipping & Trading Limited	$	(32,004)	$	40,828	$	(17,808)	$	129,899

Net (loss) earnings per share-basic	$	(0.75)	$	0.96	$	(0.42)	$	3.07
Net (loss) earnings per share-diluted	$	(0.75)	$	0.95	$	(0.42)	$	3.03
Weighted average common shares outstanding-basic		42,816,045		42,529,865		42,745,681		42,361,797
Weighted average common shares outstanding-diluted		42,816,045		42,881,541		42,745,681		42,915,240

See accompanying notes to Condensed Consolidated Financial Statements.

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Genco Shipping & Trading Limited

Condensed Consolidated Statements of Comprehensive (Loss) Income

For the Three and Nine Months Ended September 30, 2023 and 2022

(U.S. Dollars in Thousands)

(Unaudited)


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022

Net (loss) income	$	(31,864)	$	41,048	$	(17,463)	$	130,538

Other comprehensive (loss) income		(1,602)		1,488		(4,223)		6,280

Comprehensive (loss) income	$	(33,466)	$	42,536	$	(21,686)	$	136,818
Less: Comprehensive income attributable to noncontrolling interest		140		220		345		639
Comprehensive (loss) income attributable to Genco Shipping & Trading Limited	$	(33,606)	$	42,316	$	(22,031)	$	136,179

See accompanying notes to Condensed Consolidated Financial Statements.

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Genco Shipping & Trading Limited

Condensed Consolidated Statements of Equity

For the Three and Nine Months Ended September 30, 2023 and 2022

(U.S. Dollars in Thousands)


									Genco
									Shipping &
					Accumulated				Trading
			Additional		Other				Limited
	Common		Paid-in		Comprehensive		Accumulated		Shareholders'		Noncontrolling
	Stock		Capital		Income		Deficit		Equity		Interest		Total Equity
Balance — January 1, 2023	$	423	$	1,588,777	$	6,480	$	(628,247)	$	967,433	$	876	$	968,309

Net income								2,634		2,634		226		2,860

Other comprehensive loss						(1,628)				(1,628)				(1,628)

Issuance of shares due to vesting of RSUs and exercise of options		2		(2)						—				—

Cash dividends declared ($0.50 per share)				(21,516)						(21,516)				(21,516)

Nonvested stock amortization				1,559						1,559				1,559

Balance — March 31, 2023	$	425	$	1,568,818	$	4,852	$	(625,613)	$	948,482	$	1,102	$	949,584

Net income (loss)								11,562		11,562		(21)		11,541

Other comprehensive loss						(993)				(993)				(993)

Issuance of shares due to vesting of RSUs and exercise of options, net of forfeitures		—		—						—				—

Cash dividends declared ($0.15 per share)				(6,406)						(6,406)				(6,406)

Nonvested stock amortization				1,219						1,219				1,219

Balance — June 30, 2023	$	425	$	1,563,631	$	3,859	$	(614,051)	$	953,864	$	1,081	$	954,945

Net (loss) income								(32,004)		(32,004)		140		(31,864)

Other comprehensive loss						(1,602)				(1,602)				(1,602)

Issuance of shares due to vesting of RSUs		—		—						—				—

Cash dividends declared ($0.15 per share)				(6,487)						(6,487)				(6,487)

Nonvested stock amortization				1,397						1,397				1,397

Balance — September 30, 2023	$	425	$	1,558,541	$	2,257	$	(646,055)	$	915,168	$	1,221	$	916,389

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									Genco
									Shipping &
					Accumulated				Trading
			Additional		Other				Limited
	Common		Paid-in		Comprehensive		Accumulated		Shareholders'		Noncontrolling
	Stock		Capital		Income		Deficit		Equity		Interest		Total Equity
Balance — January 1, 2022	$	419	$	1,702,166	$	825	$	(786,823)	$	916,587	$	88	$	916,675

Net income								41,689		41,689		176		41,865

Other comprehensive income						3,293				3,293				3,293

Issuance of shares due to vesting of RSUs and exercise of options		2		(2)						—				—

Cash dividends declared ($0.67 per share)

GENCO SHIPPING & TRADING LTD [GNK] Filings
10-Q	[2023-11-08]
10-Q	[2023-08-08]
10-Q	[2023-05-03]
10-K	[2023-02-22]
10-Q	[2022-11-09]
10-Q	[2022-08-03]
10-Q	[2022-05-04]
10-K	[2022-02-24]
10-Q	[2021-11-03]
10-Q	[2021-08-04]
10-Q	[2021-05-05]
10-K	[2021-02-24]
10-Q	[2020-11-04]
10-Q	[2020-08-05]
10-Q	[2020-05-06]
10-K	[2020-02-27]
10-Q	[2019-11-07]
10-Q	[2019-08-09]
10-Q	[2019-05-09]
10-K	[2019-03-05]
10-Q	[2018-11-07]
10-Q	[2018-08-08]
10-Q	[2018-05-09]
10-K	[2018-02-28]
10-Q	[2017-11-07]
10-Q	[2017-08-10]
10-Q	[2017-05-11]
10-K	[2017-03-28]
10-Q	[2016-11-04]
10-Q	[2016-08-09]
10-Q	[2016-05-10]
10-K	[2016-03-15]
10-Q	[2015-11-13]
10-Q	[2015-08-10]
10-Q	[2015-05-08]
10-K	[2015-03-02]
10-Q	[2014-11-17]
10-Q	[2014-08-15]
10-Q	[2014-05-19]
10-K	[2014-04-07]
10-Q	[2013-11-08]
10-Q	[2013-08-09]
10-Q	[2013-05-10]
10-K	[2013-03-01]
10-Q	[2012-11-09]
10-Q	[2012-08-09]
10-Q	[2012-05-10]
10-K	[2012-02-22]