Genco Shipping & Trading Earnings 2020-06-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

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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 June 30, 2020

◻

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)

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 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 ◻

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)

The number of shares outstanding of each of the issuer’s classes of common stock, as of August 5, 2020: Common stock, par value $0.01 per share — 41,801,753 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 June 30, 2020 and December 31, 2019	4

	b)	Condensed Consolidated Statements of Operations for the Three and Six Months ended June 30, 2020 and 2019	5

	c)	Condensed Consolidated Statements of Comprehensive Loss for the Three and Six Months ended June 30, 2020 and 2019	6

	d)	Condensed Consolidated Statements of Equity for the Three and Six Months ended June 30, 2020 and 2019	7

	e)	Condensed Consolidated Statements of Cash Flows for the Six Months ended June 30, 2020 and 2019	8

	f)	Notes to Condensed Consolidated Financial Statements	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		24

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		51

Item 4.	Controls and Procedures		52

	PART II —OTHER INFORMATION

Item 1A.	Risk Factors		53

Item 6.	Exhibits		54

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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, SEC filings, 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 June 30, 2020 and December 31, 2019

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

(Unaudited)


	June 30,		December 31,
	2020		2019

Assets
Current assets:
Cash and cash equivalents	$	127,722	$	155,889
Restricted cash		14,855		6,045
Due from charterers, net of a reserve of $662 and $1,064, respectively		13,370		13,701
Prepaid expenses and other current assets		8,705		10,049
Inventories		23,034		27,208
Vessels held for sale		23,252		10,303
Total current assets		210,938		223,195

Noncurrent assets:
Vessels, net of accumulated depreciation of $242,465 and $288,373, respectively		1,109,341		1,273,861
Deferred drydock, net of accumulated amortization of $7,691 and $11,862 respectively		19,192		17,304
Fixed assets, net of accumulated depreciation and amortization of $2,057 and $2,154, respectively		7,215		5,976
Operating lease right-of-use assets		7,565		8,241
Restricted cash		315		315
Total noncurrent assets		1,143,628		1,305,697

Total assets	$	1,354,566	$	1,528,892

Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses	$	24,071	$	49,604
Current portion of long-term debt		79,522		69,747
Deferred revenue		4,368		6,627
Current operating lease liabilities		1,720		1,677
Total current liabilities:		109,681		127,655

Noncurrent liabilities:
Long-term operating lease liabilities		8,955		9,826
Long-term debt, net of deferred financing costs of $11,648 and $13,094, respectively		403,304		412,983
Total noncurrent liabilities		412,259		422,809

Total liabilities		521,940		550,464

Commitments and contingencies (Note 12)

Equity:
Common stock, par value $0.01; 500,000,000 shares authorized; 41,801,753 and 41,754,413 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively		418		417
Additional paid-in capital		1,714,019		1,721,268
Accumulated deficit		(881,811)		(743,257)
Total equity		832,626		978,428
Total liabilities and equity	$	1,354,566	$	1,528,892

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 Six Months Ended June 30, 2020 and 2019

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

(Unaudited)


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Revenues:
Voyage revenues	$	74,206	$	83,550	$	172,542	$	177,014

Total revenues		74,206		83,550		172,542		177,014

Operating expenses:
Voyage expenses		41,695		41,800		90,063		84,822
Vessel operating expenses		21,058		24,358		42,871		47,549
Charter hire expenses		1,432		4,849		4,507		7,267
General and administrative expenses (inclusive of nonvested stock amortization expense of $476, $569, $957 and $1,021, respectively)		5,471		5,799		11,238		12,109
Technical management fees		1,724		1,885		3,578		3,825
Depreciation and amortization		15,930		18,271		33,504		36,348
Impairment of vessel assets		—		13,897		112,814		13,897
Loss (gain) on sale of vessels		—		—		486		(611)

Total operating expenses		87,310		110,859		299,061		205,206

Operating loss		(13,104)		(27,309)		(126,519)		(28,192)

Other (expense) income:
Other income (expense)		120		107		(464)		437
Interest income		253		1,073		847		2,400
Interest expense		(5,473)		(8,124)		(12,418)		(16,699)
Impairment of right-of-use asset		—		(223)		—		(223)

Other expense		(5,100)		(7,167)		(12,035)		(14,085)

Net loss	$	(18,204)	$	(34,476)	$	(138,554)	$	(42,277)

Net loss per share-basic	$	(0.43)	$	(0.83)	$	(3.31)	$	(1.01)
Net loss per share-diluted	$	(0.43)	$	(0.83)	$	(3.31)	$	(1.01)
Weighted average common shares outstanding-basic		41,900,901		41,742,301		41,883,629		41,734,248
Weighted average common shares outstanding-diluted		41,900,901		41,742,301		41,883,629		41,734,248

See accompanying notes to condensed consolidated financial statements.

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Genco Shipping & Trading Limited

Condensed Consolidated Statements of Comprehensive Loss

For the Three and Six Months Ended June 30, 2020 and 2019

(U.S. Dollars in Thousands)

(Unaudited)


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019

Net loss	$	(18,204)	$	(34,476)	$	(138,554)	$	(42,277)

Other comprehensive income		—		—		—		—

Comprehensive loss	$	(18,204)	$	(34,476)	$	(138,554)	$	(42,277)

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 Six Months Ended June 30, 2020 and 2019

(U.S. Dollars in Thousands)

(Unaudited)


			Additional
	Common		Paid-in		Accumulated
	Stock		Capital		Deficit		Total Equity
Balance — January 1, 2020	$	417	$	1,721,268	$	(743,257)	$	978,428

Net loss						(120,350)		(120,350)

Issuance of 47,341 shares of vested RSUs, net of forfeitures of 1,490 shares		1		(1)				—

Cash dividends declared ($0.175 per share)				(7,363)				(7,363)

Nonvested stock amortization				481				481

Balance — March 31, 2020	$	418	$	1,714,385	$	(863,607)	$	851,196

Net loss						(18,204)		(18,204)

Cash dividends declared ($0.02 per share)				(842)				(842)

Nonvested stock amortization				476				476

Balance — June 30, 2020	$	418	$	1,714,019	$	(881,811)	$	832,626


			Additional
	Common		Paid-in		Accumulated
	Stock		Capital		Deficit		Total Equity
Balance — January 1, 2019	$	416	$	1,740,163	$	(687,272)	$	1,053,307

Net loss						(7,801)		(7,801)

Issuance of 12,477 shares of vested RSUs		—		—				—

Nonvested stock amortization				452				452

Balance — March 31, 2019	$	416	$	1,740,615	$	(695,073)	$	1,045,958

Net loss						(34,476)		(34,476)

Nonvested stock amortization				569				569

Balance — June 30, 2019	$	416	$	1,741,184	$	(729,549)	$	1,012,051

See accompanying notes to condensed consolidated financial statements.

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Genco Shipping & Trading Limited

Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2020 and 2019

(U.S. Dollars in Thousands)

(Unaudited)


	For the Six Months Ended
	June 30,
	2020		2019
Cash flows from operating activities:
Net loss	$	(138,554)	$	(42,277)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization		33,504		36,348
Amortization of deferred financing costs		1,909		1,867
Noncash operating lease expense		676		577
Amortization of nonvested stock compensation expense		957		1,021
Impairment of right-of-use asset		—		223
Impairment of vessel assets		112,814		13,897
Loss (gain) on sale of vessels		486		(611)
Insurance proceeds for protection and indemnity claims		278		389
Insurance proceeds for loss of hire claims		78		—
Change in assets and liabilities:
Decrease in due from charterers		331		6,588
Decrease in prepaid expenses and other current assets		504		165
Decrease in inventories		4,174		223
(Decrease) increase in accounts payable and accrued expenses		(17,454)		828
(Decrease) increase in deferred revenue		(2,259)		1,859
Decrease in operating lease liabilities		(828)		(786)
Deferred drydock costs incurred		(5,593)		(5,488)
Net cash (used in) provided by operating activities		(8,977)		14,823

Cash flows from investing activities:
Purchase of vessels and ballast water treatment systems, including deposits		(2,275)		(7,754)
Purchase of scrubbers (capitalized in Vessels)		(10,839)		(10,370)
Purchase of other fixed assets		(2,716)		(2,494)
Net proceeds from sale of vessels		14,726		6,309
Insurance proceeds for hull and machinery claims		484		612
Net cash used in investing activities		(620)		(13,697)

Cash flows from financing activities:
Proceeds from the $133 Million Credit Facility		24,000		—
Repayments on the $133 Million Credit Facility		(3,280)		(3,160)
Proceeds from the $495 Million Credit Facility		11,250		—
Repayments on the $495 Million Credit Facility		(33,321)		(34,575)
Payment of common stock issuance costs		—		(105)
Cash dividends paid		(8,126)		—
Payment of deferred financing costs		(283)		(611)
Net cash used in financing activities		(9,760)		(38,451)

Net decrease in cash, cash equivalents and restricted cash		(19,357)		(37,325)

Cash, cash equivalents and restricted cash at beginning of period		162,249		202,761
Cash, cash equivalents and restricted cash at end of period	$	142,892	$	165,436

See accompanying notes to condensed consolidated financial statements.

Price	9.36	EPS	-1
Shares	42	P/E	-10
MCap	391	P/FCF	14
Net Debt	352	EBIT	-14
TEV	743	TEV/EBIT	-53
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-06-30	Filed 2020-08-05
10-Q	2020-03-31	Filed 2020-05-06
10-K	2019-12-31	Filed 2020-02-27
10-Q	2019-09-30	Filed 2019-11-07
10-Q	2019-06-30	Filed 2019-08-09
10-Q	2019-03-31	Filed 2019-05-09
10-K	2018-12-31	Filed 2019-03-05
10-Q	2018-09-30	Filed 2018-11-07
10-Q	2018-06-30	Filed 2018-08-08
10-Q	2018-03-31	Filed 2018-05-09
10-K	2017-12-31	Filed 2018-02-28
10-Q	2017-09-30	Filed 2017-11-07
10-Q	2017-06-30	Filed 2017-08-10
10-Q	2017-03-31	Filed 2017-05-11
10-K	2016-12-31	Filed 2017-03-28
10-Q	2016-09-30	Filed 2016-11-04
10-Q	2016-06-30	Filed 2016-08-09
10-Q	2016-03-31	Filed 2016-05-10
10-K	2015-12-31	Filed 2016-03-15
10-Q	2015-09-30	Filed 2015-11-13
10-Q	2015-06-30	Filed 2015-08-10
10-Q	2015-03-31	Filed 2015-05-08
10-K	2014-12-31	Filed 2015-03-02
10-Q	2014-09-30	Filed 2014-11-17
10-Q	2014-06-30	Filed 2014-08-15
10-Q	2014-03-31	Filed 2014-05-19
10-K	2013-12-31	Filed 2014-04-07
10-Q	2013-09-30	Filed 2013-11-08
10-Q	2013-06-30	Filed 2013-08-09
10-Q	2013-03-31	Filed 2013-05-10
10-K	2012-12-31	Filed 2013-03-01
10-Q	2012-09-30	Filed 2012-11-09
10-Q	2012-06-30	Filed 2012-08-09
10-Q	2012-03-31	Filed 2012-05-10
10-Q	2011-09-30	Filed 2011-11-09
10-Q	2011-06-30	Filed 2011-07-26
10-Q	2011-03-31	Filed 2011-05-10
10-K	2010-12-31	Filed 2011-03-10
10-Q	2010-09-30	Filed 2010-11-09
10-Q	2010-06-30	Filed 2010-08-09
10-Q	2010-03-31	Filed 2010-05-10
10-K	2009-12-31	Filed 2010-03-01

8-K	2020-08-05	Earnings, Exhibits
8-K	2020-07-15	Amend Bylaw, Shareholder Vote, Exhibits
8-K	2020-05-06
8-K	2020-03-17
8-K	2020-02-25
8-K	2020-01-29
8-K	2019-11-06
8-K	2019-10-25
8-K	2019-08-07
8-K	2019-06-11
8-K	2019-05-15
8-K	2019-05-08
8-K	2019-03-05
8-K	2018-12-18
8-K	2018-12-18
8-K	2018-11-07
8-K	2018-10-10
8-K	2018-08-14
8-K	2018-08-08
8-K	2018-07-18
8-K	2018-06-15
8-K	2018-06-14
8-K	2018-05-31
8-K	2018-05-15
8-K	2018-05-08
8-K	2018-04-05
8-K	2018-03-26
8-K	2018-02-27

EX-10.1	gnk-20200630xex10d1.htm
EX-10.2	gnk-20200630xex10d2.htm
EX-10.3	gnk-20200630xex10d3.htm
EX-10.5	gnk-20200630xex10d5.htm
EX-31.1	gnk-20200630xex31d1.htm
EX-31.2	gnk-20200630xex31d2.htm
EX-32.1	gnk-20200630xex32d1.htm
EX-32.2	gnk-20200630xex32d2.htm

GNK 10Q Quarterly Report

Genco Shipping & Trading Earnings 2020-06-30