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DIAMOND S SHIPPING INC. REPORTS FOURTH QUARTER 2019 RESULTS
Announces Share Repurchase Program of up to $50 Million
Greenwich, CT, USA, March 5, 2020. Diamond S Shipping Inc. (NYSE: DSSI) (“Diamond S”, or the “Company”), one of the largest publicly listed owners and operators of crude oil and product tankers, today announced results for the fourth quarter of 2019.
Highlights for the Fourth Quarter and Recent Events
-- Reported net income attributable to Diamond S of $26.1 million, or $0.65 per basic and diluted earnings per share (“EPS”), and Adjusted EBITDA (see Non-GAAP Measures section below) of $69.9 million. EPS excluding a one-time loss on the write-off of deferred financing fees was approximately $0.75 for the quarter.
-- Refinanced three legacy credit facilities, which represented approximately $500.6 million of debt, composed of $489.6 million of term loans and $11.0 of million revolving loans, into a $375.0 million term loan and up to $150.0 million in revolving loans. The refinancing extended final debt maturities on these amounts out to December 2024. The facility bears interest at LIBOR plus 2.5%.
-- Net debt at December 31, 2019 was $810.7 million implying a net debt to asset value leverage ratio of 47% based on most recent available broker valuations as of December 2019.
-- As of February 28, 2020, fixed 73% of Crude Fleet revenue days at an average rate of approximately $47,000 per day and 80% of Product Fleet revenue days at an average rate of approximately $15,900 per day in the first quarter of 2020.
-- Announced share repurchase program of up to $50 million of the Company’s shares, commencing in the first quarter of 2020.
Craig H. Stevenson Jr., President and CEO of Diamond S, commented: “The Company’s ability to capitalize on a strong rate environment is reflected in our fourth quarter results as Diamond S’ unit leverage and spot market focus offers investors upside exposure in the tanker markets. We believe that Diamond S’ conservative balance sheet, low cash break-evens and strong liquidity profile will enable us to appropriately manage the market volatility from the outbreak of the coronavirus, while keeping us ready to take advantage in any run-up in tanker rates from the current seasonal levels. Accordingly, and given the disconnect between our long-term outlook and the Company’s share price, we believe that share repurchases represent the most prudent use of our financial resources and the appropriate mechanism to return value to our shareholders at this time.”
Fourth Quarter 2019 Results1
Net income attributable to Diamond S for the fourth quarter of 2019 was $26.1 million, or $0.65 per basic and diluted share, compared to a net loss of $30.8 million, or $1.13 per basic and diluted share, for the three months ended December 31, 2018. The increase in the fourth quarter of 2019 is primarily related to an increase in the number of vessels as a result of the Merger1 and improved tanker market conditions in both the crude and product tanker segments.
1 As used herein, the term “Merger” refers to the business combination of DSS Holdings L.P. (“DSS LP”) and the crude and product tanker business of Capital Product Partners L.P. (“CPLP”) on March 27, 2019. The historical consolidated financial statements of DSS LP and all of its directly-owned subsidiaries for periods prior to the Merger are considered to be the predecessor financial statements of the Company. In January 2019, DSS LP’s Board of Directors approved changing the Company’s fiscal year end to December 31 of each calendar year from March 31. Both the three month period ending December 31, 2018 and twelve month period ending December 31, 2018 are unaudited and certain financial information for those periods is included herein to provide historical comparative financial results. The twelve month period ended December 31, 2018 reflects the addition of the nine months ended December 31, 2018 (available in our registration statement on Form 10 filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 21, 2018, as thereafter amended) and the three months ended March 31, 2018 (available in our quarterly report on Form 10-Q filed with the SEC on May 15, 2019).
The following information was filed by Diamond S Shipping Inc. (DSSI) on Thursday, March 5, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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