International Seaways Earnings 2020-09-30

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

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 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 1-37836-1

INTERNATIONAL SEAWAYS, INC.

(Exact name of registrant as specified in its charter)


Marshall Islands		98-0467117
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

600 Third Avenue, 39^th Floor, New York, New York		10016
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: 212-578-1600

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 or a smaller reporting company. See the definitions of “accelerated filer”, “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.



Large accelerated filer ☐	Accelerated filer ☒	Emerging growth company ☒

Non-accelerated filer ☐	Smaller reporting company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided 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 ☒

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


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock (no par value)	INSW	New York Stock Exchange
8.5% Senior Notes due 2023	INSW - PA	New York Stock Exchange

Former name, former address and former fiscal year, if changed since last report

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date. The number of shares outstanding of the issuer’s common stock as of November 3, 2020: common stock, no par value 27,984,807 shares.

INTERNATIONAL SEAWAYS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
DOLLARS IN THOUSANDS
(UNAUDITED)


	September 30,		December 31,
	2020		2019
ASSETS
Current Assets:
Cash and cash equivalents	$	137,340	$	89,671
Voyage receivables, net of allowance for credit losses of $46 and $1,245
including unbilled of $67,089 and $74,355		71,431		83,845
Other receivables		4,702		3,938
Inventories		1,400		3,896
Prepaid expenses and other current assets		5,372		5,994
Total Current Assets		220,245		187,344
Restricted cash		16,314		60,572
Vessels and other property, less accumulated depreciation of $317,249 and $364,868		1,262,469		1,292,516
Deferred drydock expenditures, net		28,785		23,125
Operating lease right-of-use assets		24,013		33,718
Investments in and advances to affiliated companies		156,589		153,292
Long-term derivative asset		973		—
Other assets		2,925		2,934
Total Assets	$	1,712,313	$	1,753,501

LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable, accrued expenses and other current liabilities	$	27,355	$	27,554
Current portion of operating lease liabilities		9,949		12,958
Current installments of long-term debt		61,483		70,350
Current portion of derivative liability		4,035		3,614
Total Current Liabilities		102,822		114,476
Long-term operating lease liabilities		11,593		17,953
Long-term debt		489,194		590,745
Long-term derivative liability		6,200		6,545
Other liabilities		15,986		1,489
Total Liabilities		625,795		731,208

Commitments and contingencies

Equity:
Capital - 100,000,000 no par value shares authorized; 27,984,807 and 29,274,452
shares issued and outstanding		1,280,811		1,313,178
Accumulated deficit		(158,957)		(270,315)
		1,121,854		1,042,863
Accumulated other comprehensive loss		(35,336)		(20,570)
Total Equity		1,086,518		1,022,293
Total Liabilities and Equity	$	1,712,313	$	1,753,501

See notes to condensed consolidated financial statements

INTERNATIONAL SEAWAYS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS
(UNAUDITED)


	Three Months Ended September 30,				Nine Months Ended September 30,
		2020		2019		2020		2019
Shipping Revenues:
Pool revenues, including $36,977, $30,224, $178,934 and $98,115
from companies accounted for by the equity method	$	49,217	$	46,278	$	250,485	$	158,628
Time and bareboat charter revenues		31,294		7,638		66,553		19,699
Voyage charter revenues		19,372		17,362		47,907		63,835
		99,883		71,278		364,945		242,162

Operating Expenses:
Voyage expenses		5,851		5,470		15,893		19,838
Vessel expenses		31,501		30,350		94,739		91,634
Charter hire expenses		6,442		14,381		24,213		44,599
Depreciation and amortization		19,014		18,961		56,161		56,708
General and administrative		7,422		6,449		21,550		19,519
Provision for credit losses, net		(13)		(18)		(80)		1,259
Third-party debt modification fees		—		—		232		30
Loss/(gain) on disposal of vessels and other property, including impairments		12,834		(1,472)		14,164		28
Total operating expenses		83,051		74,121		226,872		233,615
Income/(loss) from vessel operations		16,832		(2,843)		138,073		8,547
Equity in income of affiliated companies		5,356		8,474		15,672		24,559
Operating income		22,188		5,631		153,745		33,106
Other (expense)/income		(208)		284		(13,497)		2,159
Income before interest expense and income taxes		21,980		5,915		140,248		35,265
Interest expense		(7,999)		(17,010)		(28,889)		(51,986)
Income/(loss) before income taxes		13,981		(11,095)		111,359		(16,721)
Income tax provision		—		—		(1)		—
Net income/(loss)	$	13,981	$	(11,095)	$	111,358	$	(16,721)

Weighted Average Number of Common Shares Outstanding:
Basic		27,932,928		29,249,233		28,517,037		29,217,188
Diluted		28,026,005		29,249,233		28,665,961		29,217,188

Per Share Amounts:
Basic net income/(loss) per share	$	0.50	$	(0.38)	$	3.90	$	(0.57)
Diluted net income/(loss) per share	$	0.50	$	(0.38)	$	3.88	$	(0.57)

See notes to condensed consolidated financial statements

INTERNATIONAL SEAWAYS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
DOLLARS IN THOUSANDS
(UNAUDITED)


	Three Months Ended September 30,				Nine Months Ended September 30,
		2020		2019		2020		2019
Net income/(loss)	$	13,981	$	(11,095)	$	111,358	$	(16,721)
Other comprehensive income/(loss), net of tax:
Net change in unrealized losses on cash flow hedges		1,119		(3,469)		(15,049)		(13,850)
Defined benefit pension and other postretirement benefit plans:
Net change in unrecognized prior service costs		(46)		35		34		39
Net change in unrecognized actuarial losses		(328)		232		249		256
Other comprehensive income/(loss), net of tax		745		(3,202)		(14,766)		(13,555)
Comprehensive income/(loss)	$	14,726	$	(14,297)	$	96,592	$	(30,276)

See notes to condensed consolidated financial statements

INTERNATIONAL SEAWAYS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
DOLLARS IN THOUSANDS
(UNAUDITED)


	Nine Months Ended September 30,
		2020		2019
Cash Flows from Operating Activities:
Net income/(loss)	$	111,358	$	(16,721)
Items included in net income/(loss) not affecting cash flows:
Depreciation and amortization		56,161		56,708
Loss on write-down of vessels and other assets		17,136		—
Amortization of debt discount and other deferred financing costs		2,338		5,373
Deferred financing costs write-off		13,073		343
Stock compensation, non-cash		3,993		2,912
Earnings of affiliated companies		(15,566)		(24,945)
Change in fair value of interest rate collar recorded through earnings		1,271		—
Other – net		904		538
Items included in net income/(loss) related to investing and financing activities:
(Gain)/loss on disposal of vessels and other property, net		(2,972)		28
Loss on extinguishment of debt		1,195		100
Cash distributions from affiliated companies		8,500		10,214
Payments for drydocking		(15,825)		(13,539)
Insurance claims proceeds related to vessel operations		4,706		967
Changes in operating assets and liabilities:
Decrease in receivables		12,414		19,165
Increase/(decrease) in deferred revenue		1,622		(25)
Net change in inventories, prepaid expenses and other current assets, accounts
payable, accrued expenses and other current and long-term liabilities		(1,517)		2,238
Net cash provided by operating activities		198,791		43,356
Cash Flows from Investing Activities:
Expenditures for vessels and vessel improvements		(46,449)		(9,797)
Proceeds from disposal of vessels and other property		13,564		15,762
Expenditures for other property		(493)		(406)
Investments in and advances to affiliated companies, net		2,347		2,104
Repayments of advances from affiliated companies		—		4,836
Net cash (used in)/provided by investing activities		(31,031)		12,499
Cash Flows from Financing Activities:
Issuance of debt, net of issuance and deferred financing costs		362,989		—
Extinguishment of debt		(422,699)		(10,000)
Premium and fees on extinguishment of debt		(163)		(100)
Payments on debt		(66,636)		(38,531)
Payments on derivatives containing other-than-insignificant financing element		(1,331)		—
Cash dividends paid		(5,091)		—
Repurchases of common stock		(29,997)		—
Cash paid to tax authority upon vesting of stock-based compensation		(1,272)		(369)
Other – net		(149)		(277)
Net cash used in financing activities		(164,349)		(49,277)
Net increase in cash, cash equivalents and restricted cash		3,411		6,578
Cash, cash equivalents and restricted cash at beginning of year		150,243		117,644
Cash, cash equivalents and restricted cash at end of period	$	153,654	$	124,222

See notes to condensed consolidated financial statements

INTERNATIONAL SEAWAYS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
DOLLARS IN THOUSANDS
(UNAUDITED)


					Accumulated
					Other
			Accumulated		Comprehensive
	Capital		Deficit		Loss		Total
For the nine months ended
Balance at January 1, 2020	$	1,313,178	$	(270,315)	$	(20,570)	$	1,022,293
Net income		—		111,358		—		111,358
Other comprehensive loss		—		—		(14,766)		(14,766)
Dividends declared and paid		(5,091)		—		—		(5,091)
Forfeitures of vested restricted stock awards		(1,272)		—		—		(1,272)
Compensation relating to restricted stock awards		711		—		—		711
Compensation relating to restricted stock units awards		2,489		—		—		2,489
Compensation relating to stock option awards		793		—		—		793
Repurchase of common stock		(29,997)		—		—		(29,997)
Balance at September 30, 2020	$	1,280,811	$	(158,957)	$	(35,336)	$	1,086,518

Balance at January 1, 2019	$	1,309,269	$	(269,485)	$	(29,929)	$	1,009,855
Net loss		—		(16,721)		—		(16,721)
Other comprehensive loss		—		—		(13,555)		(13,555)
Forfeitures of vested restricted stock awards		(369)		—		—		(369)
Compensation relating to restricted stock awards		667		—		—		667
Compensation relating to restricted stock units awards		1,462		—		—		1,462
Compensation relating to stock option awards		783		—		—		783
Balance at September 30, 2019	$	1,311,812	$	(286,206)	$	(43,484)	$	982,122

For the three months ended
Balance at July 1, 2020	$	1,281,072	$	(172,938)	$	(36,081)	$	1,072,053
Net income		—		13,981		—		13,981
Other comprehensive income		—		—		745		745
Dividends declared and paid		(1,679)		—		—		(1,679)
Forfeitures of vested restricted stock awards		(72)

Price	17.28	EPS	-0
Shares	29	P/E	-87
MCap	506	P/FCF	12
Net Debt	644	EBIT	64
TEV	1,149	TEV/EBIT	18
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-09-30	Filed 2020-11-06
10-Q	2020-06-30	Filed 2020-08-07
10-Q	2020-03-31	Filed 2020-05-07
10-K	2019-12-31	Filed 2020-03-03
10-Q	2019-09-30	Filed 2019-11-07
10-Q	2019-06-30	Filed 2019-08-08
10-Q	2019-03-31	Filed 2019-05-09
10-K	2018-12-31	Filed 2019-03-12
10-Q	2018-09-30	Filed 2018-11-07
10-Q	2018-06-30	Filed 2018-08-08
10-Q	2018-03-31	Filed 2018-05-07
10-K	2017-12-31	Filed 2018-03-12
10-Q	2017-09-30	Filed 2017-11-09
10-Q	2017-06-30	Filed 2017-08-09
10-Q	2017-03-31	Filed 2017-05-10
10-K	2016-12-31	Filed 2017-03-31
10-Q	2016-09-30	Filed 2016-12-05

8-K	2020-11-06
8-K	2020-11-02
8-K	2020-09-17
8-K	2020-08-07
8-K	2020-07-08
8-K	2020-06-22
8-K	2020-05-20
8-K	2020-05-07
8-K	2020-04-27
8-K	2020-04-02
8-K	2020-03-31
8-K	2020-03-03
8-K	2020-01-23
8-K	2020-01-15
8-K	2020-01-06
8-K	2019-11-07
8-K	2019-10-08
8-K	2019-10-07
8-K	2019-10-07
8-K	2019-08-08
8-K	2019-06-24
8-K	2019-06-05
8-K	2019-05-09
8-K	2019-04-26
8-K	2019-04-05
8-K	2019-03-12
8-K	2019-03-07
8-K	2019-01-09
8-K	2018-12-28
8-K	2018-12-12
8-K	2018-11-07
8-K	2018-09-25
8-K	2018-08-08
8-K	2018-06-18
8-K	2018-06-14
8-K	2018-06-12
8-K	2018-05-31
8-K	2018-05-24
8-K	2018-05-14
8-K	2018-05-04
8-K	2018-05-02
8-K	2018-04-26
8-K	2018-04-26
8-K	2018-04-18
8-K	2018-04-04
8-K	2018-03-08
8-K	2017-12-20

EX-31.1	insw-20200930xex31d1.htm
EX-31.2	insw-20200930xex31d2.htm
EX-32	insw-20200930xex32.htm

INSW 10Q Quarterly Report

International Seaways Earnings 2020-09-30