Exhibit 99.1
Selected Financial Information
Pro Forma 03/31/07*
(Dollars in thousands)
Balance Sheet | | Liquidity Position** |
| Cash | $43,719 | | Revolving Credit Facility | $650,000 *** |
| Debt | $239,233 | | Undrawn Facilities | $443,767 |
| Shareholders’ Equity | $339,325 | | Cash | $43,719 |
| Net Debt | $195,514 | | | |
| Total Capitalization | $534,839 | | | |
| | | | | |
| Net Debt / Total Cap. | 37% | | Total Liquidity | $487,486 |
* March 31, 2007 pro forma balance sheet information takes into effect the Company’s payment of dividends of $16.84 million on or about May 31, 2007 to all shareholders of record as of May 17, 2007, the use of approximately $26.6 million of cash and the borrowing of $33 million under our Short-Term Line for the acquisition of Jinhui shares.
**Excludes the Short-Term Line.
*** Includes the option to expand credit facility by $100 million with the agreement of at least one lender in increments of $25 million.
2007 Estimated Quarterly Break-Even Levels(1)
Daily Expenses by Category | Free Cash Flow(2) | Net Income |
| Direct Vessel Operating(3) | $ 3,682 | $ 3,682 |
| General & Administrative(4) | 1,276 | 1,577 |
| Management Fees(5) | 231 | 231 |
| Dry Docking (6) | 500 | - |
| Interest Expense (7) | 2,162 | 2,220 |
| Depreciation(8) | - | 4,263 |
Daily Break-Even(9) | $ 7,851 | $ 11,973 |
| (1) | Calculations for breakeven levels are based on an average number of vessels of 19 vessels for the second quarter of 2007. |
| (2) | Free Cash Flow is defined as net income plus depreciation less capital expenditures, primarily vessel dry dockings and other non-cash items including restricted stock compensation. |
| (3) | Direct Vessel Operating Expenses is based on management’s estimates and budgets submitted by our technical managers. We believe DVOE are best measured for comparative purposes over a 12-month period. |
| (4) | General & Administrative amounts are based on a budget and may vary, including as a result of actual incentive compensation. |
| (5) | Management Fees are based on the contracted monthly rate per vessel for the technical management of our fleet. |
| (6) | Dry Docking represents our total dry docking budget for 2007 of $3.5 million. Estimates are subject to change during the year. |
| (7) | Interest Expense is based on our debt level as of March 31, 2007 of $206.2 million outstanding, unused commitment fees, and amortization of deferred financing costs. Of the outstanding amount of $206.2 million, $106.2 million is calculated based on our fixed swap rate of 4.485% plus 0.95% margin, $50 million is calculated based on our fixed swap rate of 5.25% plus 0.95% margin, and the remaining is calculated based on an assumed LIBOR rate of 5.35% plus 0.95% margin. An additional amount of $33 million of debt was drawn down under our Short-Term Line and used for the acquisition of Jinhui shares. Interest expense under the Short-Term Line is calculated at LIBOR plus 0.85% margin, along with a commitment fee for the unused portion of the Short-Term Line. |
| (8) | Depreciation is based primarily on the purchase price of the current fleet and amortization of dry docking costs. |
| (9) | The amounts shown will vary based on actual results. |
Pro Forma Reconciliation
03/31/07
(Dollars in thousands)
03/31/07 Actual | | Adjustment* | | 03/31/07 Pro Forma |
| Cash | $87,158 | | ($43,439) | | $43,719 |
| Debt | $206,233 | | $33,000 | | $239,233 |
| Net Debt** | $119,075 | | - | | $195,514 |
| Shareholders’ Equity | $356,167 | | ($16,842) | | $339,325 |
| Total Capitalization | $475,242 | | - | | $534,839 |
* March 31, 2007 pro forma balance sheet information takes into effect the Company’s payment of dividends of $16.84 million on or about May 31, 2007 to all shareholders of record as of May 17, 2007, the use of approximately $26.6 million of cash and the borrowing of $33 million under our Short-Term Line for the acquisition of Jinhui shares.
**Net debt is calculated as debt minus cash.
Net Debt & Total Capitalization Reconciliation
Pro Forma 03/31/07*
(Dollars in thousands)
03/31/07 |
| Pro Forma Debt | $239,233 |
| Less: Pro Forma Cash* | $43,719 |
| Pro Forma Net Debt | $195,514 |
| | |
| Plus: Pro Forma Shareholders’ Equity* | $339,325 |
| Total Pro Forma Capitalization | $534,839 |
* March 31, 2007 pro forma balance sheet information takes into effect the Company’s payment of dividends of $16.84 million on or about May 31, 2007 to all shareholders of record as of May 17, 2007, the use of approximately $26.6 million of cash and the borrowing of $33 million under our Short-Term Line for the acquisition of Jinhui shares.
