Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 06, 2020 | |
Document and Entity Information | ||
Entity Registrant Name | GENCO SHIPPING & TRADING LTD | |
Entity Central Index Key | 0001326200 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 41,801,753 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 134,338 | $ 155,889 |
Restricted cash | 14,855 | 6,045 |
Due from charterers, net of a reserve of $665 and $1,064, respectively | 15,004 | 13,701 |
Prepaid expenses and other current assets | 10,865 | 10,049 |
Inventories | 29,342 | 27,208 |
Vessels held for sale | 23,129 | 10,303 |
Total current assets | 227,533 | 223,195 |
Noncurrent assets: | ||
Vessels, net of accumulated depreciation of $228,208 and $288,373, respectively | 1,121,561 | 1,273,861 |
Deferred drydock, net of accumulated amortization of $6,993 and $11,862 respectively | 17,704 | 17,304 |
Fixed assets, net of accumulated depreciation and amortization of $1,704 and $2,154, respectively | 5,949 | 5,976 |
Operating lease right-of-use assets | 7,904 | 8,241 |
Restricted cash | 315 | 315 |
Total noncurrent assets | 1,153,433 | 1,305,697 |
Total assets | 1,380,966 | 1,528,892 |
Current liabilities: | ||
Accounts payable and accrued expenses | 34,170 | 49,604 |
Current portion of long-term debt | 72,962 | 69,747 |
Deferred revenue | 7,818 | 6,627 |
Current operating lease liabilities | 1,698 | 1,677 |
Total current liabilities: | 116,648 | 127,655 |
Noncurrent liabilities: | ||
Long-term operating lease liabilities | 9,393 | 9,826 |
Long-term debt, net of deferred financing costs of $12,143 and $13,094, respectively | 403,729 | 412,983 |
Total noncurrent liabilities | 413,122 | 422,809 |
Total liabilities | 529,770 | 550,464 |
Commitments and contingencies (Note 14) | ||
Equity: | ||
Common stock, par value $0.01; 500,000,000 shares authorized; 41,801,753 and 41,754,413 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 418 | 417 |
Additional paid-in capital | 1,714,385 | 1,721,268 |
Accumulated deficit | (863,607) | (743,257) |
Total equity | 851,196 | 978,428 |
Total liabilities and equity | $ 1,380,966 | $ 1,528,892 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Due from charterers, reserve | $ 665 | $ 1,064 |
Noncurrent assets: | ||
Vessels, accumulated depreciation | 228,208 | 288,373 |
Deferred drydock, accumulated amortization | 6,993 | 11,862 |
Fixed assets, accumulated depreciation and amortization | 1,704 | 2,154 |
Deferred financing costs, noncurrent | $ 12,143 | $ 13,094 |
Genco Shipping & Trading Limited shareholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 41,801,753 | 41,754,413 |
Common stock, shares outstanding (in shares) | 41,801,753 | 41,754,413 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues: | ||
Revenues | $ 98,336 | $ 93,464 |
Operating expenses: | ||
Voyage expenses | 48,368 | 43,022 |
Vessel operating expenses | 21,813 | 23,190 |
Charter hire expenses | 3,075 | 2,419 |
General and administrative expenses (inclusive of nonvested stock amortization expense of $481 and $452, respectively) | 5,767 | 6,310 |
Technical management fees | 1,854 | 1,940 |
Depreciation and amortization | 17,574 | 18,076 |
Impairment of vessel assets | 112,814 | 0 |
Loss (gain) on sale of vessels | 486 | (611) |
Total operating expenses | 211,751 | 94,346 |
Operating loss | (113,415) | (882) |
Other (expense) income: | ||
Other (expense) income | (584) | 329 |
Interest income | 594 | 1,327 |
Interest expense | (6,945) | (8,575) |
Other expense | (6,935) | (6,919) |
Net loss | $ (120,350) | $ (7,801) |
Net loss per share-basic | $ (2.87) | $ (0.19) |
Net loss per share-diluted | $ (2.87) | $ (0.19) |
Weighted average common shares outstanding-basic | 41,866,357 | 41,726,106 |
Weighted average common shares outstanding-diluted | 41,866,357 | 41,726,106 |
Voyage | ||
Revenues: | ||
Revenues | $ 98,336 | $ 93,464 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Consolidated Statements of Operations | ||
Nonvested stock amortization expenses | $ 481 | $ 452 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Consolidated Statements of Comprehensive Loss | ||
Net loss | $ (120,350) | $ (7,801) |
Other comprehensive income | 0 | 0 |
Comprehensive loss | $ (120,350) | $ (7,801) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at the beginning at Dec. 31, 2018 | $ 416 | $ 1,740,163 | $ (687,272) | $ 1,053,307 |
Increase (Decrease) in Shareholders' Equity | ||||
Net loss | (7,801) | (7,801) | ||
Nonvested stock amortization | 452 | 452 | ||
Balance at the end at Mar. 31, 2019 | 416 | 1,740,615 | (695,073) | 1,045,958 |
Balance at the beginning at Dec. 31, 2019 | 417 | 1,721,268 | (743,257) | 978,428 |
Increase (Decrease) in Shareholders' Equity | ||||
Net loss | (120,350) | (120,350) | ||
Issuance of vested RSUs, net of forfeitures | 1 | (1) | ||
Cash dividends declared ($0.175 per share) | (7,363) | (7,363) | ||
Nonvested stock amortization | 481 | 481 | ||
Balance at the end at Mar. 31, 2020 | $ 418 | $ 1,714,385 | $ (863,607) | $ 851,196 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Consolidated Statements of Equity | ||
Issuance of shares of RSUs, net (in shares) | 47,341 | 12,477 |
Forfeited (in shares) | 1,490 | |
Dividends declared per share | $ 0.175 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (120,350) | $ (7,801) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 17,574 | 18,076 |
Amortization of deferred financing costs | 951 | 915 |
Noncash operating lease expense | 337 | 285 |
Amortization of nonvested stock compensation expense | 481 | 452 |
Impairment of vessel assets | 112,814 | 0 |
Loss (gain) on sale of vessels | 486 | (611) |
Insurance proceeds for protection and indemnity claims | 101 | 226 |
Change in assets and liabilities: | ||
(Increase) decrease in due from charterers | (1,303) | 5,041 |
(Increase) decrease in prepaid expenses and other current assets | (1,074) | 927 |
Increase in inventories | (2,134) | (1,077) |
Decrease in accounts payable and accrued expenses | (9,916) | (2,114) |
Increase (decrease) in deferred revenue | 1,191 | (1,907) |
Decrease in operating lease liabilities | (412) | (390) |
Deferred drydock costs incurred | (2,784) | (410) |
Net cash (used in) provided by operating activities | (4,038) | 11,612 |
Cash flows from investing activities: | ||
Purchase of vessels and ballast water treatment systems, including deposits | (273) | (3,406) |
Purchase of scrubbers (capitalized in Vessels) | (7,778) | (5,868) |
Purchase of other fixed assets | (1,039) | (1,199) |
Net proceeds from sale of vessels | 14,510 | 6,351 |
Insurance proceeds for hull and machinery claims | 157 | |
Net cash provided by (used in) investing activities | 5,577 | (4,122) |
Cash flows from financing activities: | ||
Payment of common stock issuance costs | (105) | |
Cash dividends paid | (7,290) | |
Payment of deferred financing costs | (591) | |
Net cash used in financing activities | (14,280) | (17,276) |
Net decrease in cash, cash equivalents and restricted cash | (12,741) | (9,786) |
Cash, cash equivalents and restricted cash at beginning of period | 162,249 | 202,761 |
Cash, cash equivalents and restricted cash at end of period | 149,508 | 192,975 |
Secured Debt | $108 Million Credit Facility | ||
Cash flows from financing activities: | ||
Repayment of secured debt | (1,580) | (1,580) |
Secured Debt | $495 Million Credit Facility | ||
Cash flows from financing activities: | ||
Proceeds from credit facility | 11,250 | |
Repayment of secured debt | $ (16,660) | $ (15,000) |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - Secured Debt - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Feb. 28, 2019 | Aug. 14, 2018 |
$108 Million Credit Facility | |||||
Maximum borrowing capacity | $ 108 | $ 108 | $ 108 | $ 108 | |
$495 Million Credit Facility | |||||
Maximum borrowing capacity | $ 495 | $ 495 | $ 495 | $ 495 |
GENERAL INFORMATION
GENERAL INFORMATION | 3 Months Ended |
Mar. 31, 2020 | |
GENERAL INFORMATION | |
GENERAL INFORMATION | 1 - GENERAL INFORMATION The accompanying condensed consolidated financial statements include the accounts of Genco Shipping & Trading Limited (“GS&T”) and its direct and indirect wholly-owned subsidiaries (collectively, the “Company”). The Company is engaged in the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels. GS&T is incorporated under the laws of the Marshall Islands, and as of March 31, 2020, is the direct or indirect owner of all of the outstanding shares or limited liability company interests of the following subsidiaries: Genco Ship Management LLC; Genco Investments LLC; Genco RE Investments LLC; Genco Shipping Pte. Ltd.; Genco Shipping A/S; Baltic Trading Limited (“Baltic Trading”); and the ship-owning subsidiaries as set forth below under “Other General Information.” In March 2020, the World Health Organization declared the outbreak of a novel coronavirus strain, or COVID-19, to be a pandemic. The COVID-19 pandemic is having widespread, rapidly evolving, and unpredictable impacts on global society, economies, financial markets, and business practices. Governments have implemented measures in an effort to contain the virus, including social distancing, travel restrictions, border closures, limitations on public gatherings, working from home, supply chain logistical changes, and closure of non-essential businesses. This has led to a significant slowdown in overall economic activity levels globally and a decline in demand for certain of the raw materials that our vessels transport. At present, it is not possible to ascertain the overall impact of COVID-19 on the Company’s operational and financial performance, which may take some time to materialize and may not be fully reflected in the results for 2020. However, an increase in the severity or duration or a resurgence of the COVID-19 pandemic could have a material adverse effect on the Company’s business, results of operations, cash flows, financial condition, the carrying value of the Company’s assets, the fair values of the Company’s vessels, and the Company’s ability to pay dividends. Other General Information Below is the list of the Company’s wholly owned ship-owning subsidiaries as of March 31, 2020: Wholly Owned Subsidiaries Vessel Acquired Dwt Delivery Date Year Built Genco Augustus Limited Genco Augustus 180,151 8/17/07 Genco Tiberius Limited Genco Tiberius 175,874 8/28/07 Genco London Limited Genco London 177,833 9/28/07 Genco Titus Limited Genco Titus 177,729 11/15/07 Genco Warrior Limited Genco Warrior 55,435 12/17/07 Genco Predator Limited Genco Predator 55,407 12/20/07 Genco Hunter Limited Genco Hunter 58,729 12/20/07 Genco Constantine Limited Genco Constantine 180,183 2/21/08 Genco Hadrian Limited Genco Hadrian 169,025 12/29/08 Genco Commodus Limited Genco Commodus 169,098 7/22/09 Genco Maximus Limited Genco Maximus 169,025 9/18/09 Genco Claudius Limited Genco Claudius 169,001 12/30/09 Genco Bay Limited Genco Bay 34,296 8/24/10 Genco Ocean Limited Genco Ocean 34,409 7/26/10 Genco Avra Limited Genco Avra 34,391 5/12/11 Genco Mare Limited Genco Mare 34,428 7/20/11 Genco Spirit Limited Genco Spirit 34,432 11/10/11 Genco Aquitaine Limited Genco Aquitaine 57,981 8/18/10 Genco Ardennes Limited Genco Ardennes 58,018 8/31/10 Genco Auvergne Limited Genco Auvergne 58,020 8/16/10 Genco Bourgogne Limited Genco Bourgogne 58,018 8/24/10 Genco Brittany Limited Genco Brittany 58,018 9/23/10 Genco Languedoc Limited Genco Languedoc 58,018 9/29/10 Genco Loire Limited Genco Loire 53,430 8/4/10 Genco Lorraine Limited Genco Lorraine 53,417 7/29/10 Genco Normandy Limited Genco Normandy 53,596 8/10/10 Genco Picardy Limited Genco Picardy 55,257 8/16/10 Genco Provence Limited Genco Provence 55,317 8/23/10 Genco Pyrenees Limited Genco Pyrenees 58,018 8/10/10 Genco Rhone Limited Genco Rhone 58,018 3/29/11 Genco Weatherly Limited Genco Weatherly 61,556 7/26/18 Genco Columbia Limited Genco Columbia 60,294 9/10/18 Genco Endeavour Limited Genco Endeavour 181,060 8/15/18 Genco Resolute Limited Genco Resolute 181,060 8/14/18 Genco Defender Limited Genco Defender 180,021 9/6/18 Genco Liberty Limited Genco Liberty 180,032 9/11/18 Baltic Lion Limited Baltic Lion 179,185 4/8/15 (1) Baltic Tiger Limited Genco Tiger 179,185 4/8/15 (1) Baltic Leopard Limited Baltic Leopard 53,446 4/8/10 Baltic Panther Limited Baltic Panther 53,350 4/29/10 Baltic Cougar Limited Baltic Cougar 53,432 5/28/10 Baltic Jaguar Limited Baltic Jaguar 53,473 5/14/10 Baltic Bear Limited Baltic Bear 177,717 5/14/10 Baltic Wolf Limited Baltic Wolf 177,752 10/14/10 Baltic Wind Limited Baltic Wind 34,408 8/4/10 Baltic Cove Limited Baltic Cove 34,403 8/23/10 Baltic Breeze Limited Baltic Breeze 34,386 10/12/10 Baltic Fox Limited Baltic Fox 31,883 9/6/13 Baltic Hare Limited Baltic Hare 31,887 9/5/13 Baltic Hornet Limited Baltic Hornet 63,574 10/29/14 Baltic Wasp Limited Baltic Wasp 63,389 1/2/15 Baltic Scorpion Limited Baltic Scorpion 63,462 8/6/15 Baltic Mantis Limited Baltic Mantis 63,470 10/9/15 (1) The delivery date for these vessels represents the date that the vessel was purchased from Baltic Trading. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which includes the accounts of GS&T and its direct and indirect wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Basis of presentation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management of the Company, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and operating results have been included in the statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2019 (the “2019 10-K”). The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the operating results to be expected for the year ending December 31, 2020. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include vessel valuations, the valuation of amounts due from charterers, residual value of vessels, useful life of vessels and the fair value of derivative instruments, if any. Actual results could differ from those estimates. Segment reporting The Company reports financial information and evaluates its operations by voyage revenues and not by the length of ship employment for its customers, i.e., spot or time charters. Each of the Company’s vessels serve the same type of customer, have similar operations and maintenance requirements, operate in the same regulatory environment, and are subject to similar economic characteristics. Based on this, the Company has determined that it operates in one reportable segment, the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels. Restricted cash Current and non-current restricted cash includes cash that is restricted pursuant to our credit facilities. Refer to Note 7 — Debt. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same amounts shown in the Condensed Consolidated Statements of Cash Flows: March 31, December 31, 2020 2019 Cash and cash equivalents $ 134,338 $ 155,889 Restricted cash - current 14,855 6,045 Restricted cash - noncurrent 315 315 Cash, cash equivalents and restricted cash $ 149,508 $ 162,249 Vessels held for sale The Company’s Board of Directors has approved a strategy of divesting specifically identified older, less fuel-efficient vessels as part of a fleet renewal program to streamline and modernize the Company’s fleet. On March 2, 2020, the Company entered into an agreement to sell the Baltic Wind and on March 20, 2020, the Company entered into agreements to sell the Baltic Breeze and Genco Bay. The relevant vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheets as of March 31, 2020. The Baltic Wind, Baltic Breeze and Genco Bay are expected to be sold during the second and third quarters of 2020. Refer to Note 4 — Vessel Acquisitions and Dispositions for details of the agreements. On September 25, 2019, the Company entered into an agreement to sell the Genco Thunder, and the relevant vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheets as of December 31, 2019. This vessel was sold on March 5, 2020. Refer to Note 4 — Vessel Acquisitions and Dispositions for details of the agreement. Vessels, net Vessels, net is stated at cost less accumulated depreciation. Included in vessel costs are acquisition costs directly attributable to the acquisition of a vessel and expenditures made to prepare the vessel for its initial voyage, including the purchase of exhaust gas cleaning systems (“scrubbers”) and ballast water treatment systems. The Company also capitalizes interest costs for a vessel under construction as a cost that is directly attributable to the acquisition of a vessel. Vessels are depreciated on a straight-line basis over their estimated useful lives, determined to be 25 years from the date of initial delivery from the shipyard. Depreciation expense for vessels for the three months ended March 31, 2020 and 2019 was $15,833 and $16,488, respectively. Depreciation expense is calculated based on cost less the estimated residual scrap value. The costs of significant replacements, renewals and betterments are capitalized and depreciated over the shorter of the vessel’s remaining estimated useful life or the estimated life of the renewal or betterment. Undepreciated cost of any asset component being replaced that was acquired after the initial vessel purchase is written off as a component of vessel operating expense. Expenditures for routine maintenance and repairs are expensed as incurred. Scrap value is estimated by the Company by taking the estimated scrap value of $310 per lightweight ton (“lwt”) times the weight of the ship noted in lwt. Deferred revenue Deferred revenue primarily relates to cash received from charterers prior to it being earned. These amounts are recognized as income when earned. Additionally, deferred revenue includes estimated customer claims, mainly due to time charter performance issues. As of March 31, 2020 and December 31, 2019, the Company had an accrual of $303 and $577, respectively, related to these estimated customer claims. Revenue recognition Since the Company’s inception, revenues have been generated from time charter agreements, spot market voyage charters, pool agreements and spot market-related time charters. Voyage revenues also include the sale of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement. Time charters A time charter involves placing a vessel at the charterer’s disposal for a set period of time during which the charterer may use the vessel in return for the payment by the charterer of a specified daily hire rate, including any ballast bonus payments received pursuant to the time charter agreement. Spot market-related time charters are the same as other time charter agreements, except the time charter rates are variable and are based on a percentage of the average daily rates as published by the Baltic Dry Index (“BDI”). The Company records time charter revenues, including spot market-related time charters, over the term of the charter as service is provided. Revenues are recognized on a straight-line basis as the average revenue over the term of the respective time charter agreement for which the performance obligations are satisfied beginning when the vessel is delivered to the charterer until it is redelivered back to the Company. The Company records spot market-related time charter revenues over the term of the charter as service is provided based on the rate determined based on the BDI for each respective billing period. As such, the revenue earned by the Company’s vessels that are on spot market-related time charters is subject to fluctuations of the spot market. Time charter contracts, including spot market-related time charters, are considered operating leases and therefore do not fall under the scope of Accounting Standards Codification (“ASC”) 606 – Revenue from Contracts with Customers (“ASC 606”) because (i) the vessel is an identifiable asset; (ii) the Company does not have substantive substitution rights; and (iii) the charterer has the right to control the use of the vessel during the term of the contract and derives economic benefit from such use. The Company has identified that time charter agreements, including fixed rate time charters and spot market-related time charters, contain a lease in accordance with ASC 842 — Leases, refer to Note 12 — Voyage Revenues for further discussion. Spot market voyage charters In a spot market voyage charter contract, the charterer hires the vessel to transport a specific agreed-upon cargo for a single voyage, which may contain multiple load ports and discharge ports. The consideration in such a contract is determined on the basis of a freight rate per metric ton of cargo carried or occasionally on a lump sum basis. The charter party generally has a minimum amount of cargo. The charterer is liable for any short loading of cargo or "dead" freight. The contract generally has a "demurrage" or "despatch" clause. As per this clause, the charterer reimburses the Company for any potential delays exceeding the allowed laytime as per the charter party clause at the ports visited which is recorded as demurrage revenue. Conversely, the charterer is given credit if the loading/discharging activities happen within the allowed laytime known as despatch resulting in a reduction in revenue. The voyage contracts generally have variable consideration in the form of demurrage or despatch. The amount of revenue earned as demurrage or despatch paid by the Company is not a material component of the Company’s revenue for the three months ended March 31, 2020 and 2019. Pursuant to the revenue recognition guidance as disclosed in Note 12 — Voyage Revenues, revenue for spot market voyage charters is recognized ratably over the total transit time of each voyage, which commences at the time the vessel arrives at the loading port and ends at the time the discharge of cargo is completed at the discharge port. Vessel Pools At March 31, 2020 and December 31, 2019, the Company did not have any of its vessels in vessel pools. Under pool arrangements, the vessels operate under a time charter agreement whereby the cost of bunkers and port expenses are borne by the pool and operating costs including crews, maintenance and insurance are typically paid by the owner of the vessel. Since the members of the pool share in the revenue less voyage expenses generated by the entire group of vessels in the pool, and the pool operates in the spot market, the revenue earned by these vessels is subject to the fluctuations of the spot market. The Company recognizes revenue from these pool arrangements based on its portion of the net distributions reported by the relevant pool, which represents the net voyage revenue of the pool after voyage expenses and pool manager fees. Voyage expense recognition In time charters, spot market-related time charters and pool agreements, operating costs including crews, maintenance and insurance are typically paid by the owner of the vessel and specified voyage costs such as fuel and port charges are paid by the charterer. These expenses are borne by the Company during spot market voyage charters. As such, there are significantly higher voyage expenses for spot market voyage charters as compared to time charters, spot market-related time charters and pool agreements. Refer to Note 12 — Voyage Revenues for further discussion of the accounting for fuel expenses for spot market voyage charters. There are certain other non-specified voyage expenses, such as commissions, which are typically borne by the Company. At the inception of a time charter, the Company records the difference between the cost of bunker fuel delivered by the terminating charterer and the bunker fuel sold to the new charterer as a gain or loss within voyage expenses. Additionally, the Company records lower of cost and net realizable value adjustments to re-value the bunker fuel on a quarterly basis for certain time charter agreements where the inventory is subject to gains and losses. These differences in bunkers, including any lower of cost and net realizable value adjustments, resulted in a net loss of $841 and $350 during the three months ended March 31, 2020 and 2019, respectively. Additionally, voyage expenses include the cost of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement. Charter hire expenses The costs to charter-in these vessels, which primarily include the daily charter hire rate net of commissions or net freight revenue, are recorded as Charter hire expenses. The Company recorded $3,075 and $2,419 of charter hire expenses during the three months ended March 31, 2020 and 2019, respectively. Impairment of vessel assets During the three months ended March 31, 2020 and 2019, the Company recorded $112,814 and $0, respectively, related to the impairment of vessel assets in accordance with ASC 360 — “Property, Plant and Equipment” (“ASC 360”). At March 31, 2020, the Company determined that the expected estimated future undiscounted cash flows for four of our Supramax vessels, the Genco Picardy, the Genco Predator, the Genco Provence and the Genco Warrior, did not exceed the net book value of these vessels as of March 31, 2020. The Company adjusted the carrying value of these vessels to their respective fair market values as of March 31, 2020. This resulted in an impairment loss of $27,046 during the three months ended March 31, 2020. On February 24, 2020, the Board of Directors determined to dispose of the Company’s following ten Handysize vessels: the Baltic Hare, the Baltic Fox, the Baltic Wind, the Baltic Cove, the Baltic Breeze, the Genco Ocean, the Genco Bay, the Genco Avra, the Genco Mare and the Genco Spirit , at times and on terms to be determined in the future. Given this decision, and that the revised estimated future undiscounted cash flows for each of these older vessels did not exceed the net book value for each vessel given the estimated probabilities of whether the vessels will be sold, the Company adjusted the values of these older vessels to their respective fair market values during the three months ended March 31, 2020. Subsequent to February 24, 2020, the Company has entered into agreements to sell three of these vessels during the three months ended March 31, 2020, namely the Baltic Wind, the Baltic Breeze and the Genco Bay, which were adjusted to their net sales price. This resulted in an impairment loss of $85,768 during the three months ended March 31, 2020. Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the vessel sales. Loss (gain) on sale of vessels During the three months ended March 31, 2020, the Company recorded a net loss of $486 related to the sale of vessels. The net loss of $486 recorded during the three months ended March 31, 2020 related primarily to the sale of the Genco Charger and Genco Thunder. During the three months ended March 31, 2019, the Company recorded a net gain of $611 related to the sale of vessels. The net gain of $611 recorded during the three months ended March 31, 2019 related primarily to the sale of the Genco Vigour. Recent accounting pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-13, “Disclosure Framework: Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-03”),” which change the disclosure requirements for fair value measurements by removing, adding, and modifying certain disclosures. This ASU is effective for fiscal years beginning after December 15, 2019, and for interim periods within that year. Early adoption is permitted for any eliminated or modified disclosures upon issuance of this ASU. The Company has evaluated the impact of the adoption of ASU 2018-03 and has determined that there is no effect on its condensed consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments—Credit Losses" ("ASU 2016-13"). ASU 2016-13 amends the current financial instrument impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. ASU 2016-13 was effective on January 1, 2020, with early adoption permitted. The Company adopted ASU 2016-13 during the first quarter of 2020 and it did not have a material impact on the Company’s condensed consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”).” ASU 2020-04 provides temporary optional expedients and exceptions to the guidance in U.S. GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. This ASU is effective for adoption at any time between March 12, 2020 and December 31, 2022. The Company is currently evaluating the impact of this adoption on its condensed consolidated financial statements and related disclosures. |
CASH FLOW INFORMATION
CASH FLOW INFORMATION | 3 Months Ended |
Mar. 31, 2020 | |
CASH FLOW INFORMATION | |
CASH FLOW INFORMATION | 3 - CASH FLOW INFORMATION For the three months ended March 31, 2020, the Company had non-cash investing activities not included in the Condensed Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $2,950 for the Purchase of scrubbers, $1,314 for the Purchase of vessels and ballast water treatment systems, including deposits, $548 for the Purchase of other fixed assets and $196 for the Net proceeds from sale of vessels. For the three months ended March 31, 2020, the Company had non-cash financing activities not included in the Condensed Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expense consisting of $97 for Cash dividends paid. For the three months ended March 31, 2019, the Company had non-cash investing activities not included in the Condensed Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $297 for the Purchase of vessels and ballast water treatment systems, including deposits, $9 for the Purchase of scrubbers, $41 for the Net proceeds from sale of vessels and $124 for the Purchase of other fixed assets. For the three months ended March 31, 2019, the Company had non-cash financing activities not included in the Condensed Consolidated Statement of Cash Flows for items included Accounts payable and accrued expenses consisting of $20 for the Payment of deferred financing fees. During the three months ended March 31, 2020 and 2019, cash paid for interest was $6,051 and $7,760, respectively. During the three months ended March 31, 2020 and 2019, there was no cash paid for estimated income taxes. During the three months ended March 31, 2020, the Company made a reclassification of $23,129 from Vessels, net of accumulated depreciation to Vessels held for sale as the Company entered into agreements to sell the Baltic Wind, Baltic Breeze and Genco Bay prior to March 31, 2020. Refer to Note 4 — Vessel Acquisitions and Dispositions. On February 25, 2020, the Company issued 173,749 restricted stock units and options to purchase 344,568 shares of the Company’s stock at an exercise price of $7.06 to certain individuals. The fair value of these restricted stock units and stock options were $1,227 and $693, respectively. On March 4, 2019, the Company issued 106,079 restricted stock units and options to purchase 240,540 shares of the Company’s stock at an exercise price of $8.39 to certain individuals. The fair value of these restricted stock units and stock options were $890 and $904, respectively. Refer to Note 15 — Stock-Based Compensation for further information regarding the aforementioned grants. |
VESSEL ACQUISITIONS AND DISPOSI
VESSEL ACQUISITIONS AND DISPOSITIONS | 3 Months Ended |
Mar. 31, 2020 | |
VESSEL ACQUISITIONS AND DISPOSITIONS | |
VESSEL ACQUISITIONS AND DISPOSITIONS | 4 - VESSEL ACQUISITIONS AND DISPOSITIONS Vessel Dispositions On March 20, 2020, the Company entered into agreements to sell the Baltic Breeze and Genco Bay, both 2010-built Handysize vessels, for $7,900 each less a 2.0% broker commission payable to a third party. The sales are expected to be completed during the second and third quarter of 2020. The vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheets as of March 31, 2020. Refer to “Impairment of vessel assets” section in Note 2 — Summary of Significant Accounting Policies for impairment expense recorded during the three months ended March 31, 2020. On March 2, 2020, the Company entered into an agreement to sell the Baltic Wind, a 2009-built Handysize vessel, for $7,750 less a 2.0% broker commission payable to a third party. The sale is expected to be completed during the second quarter of 2020. The vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheets as of March 31, 2020. Refer to “Impairment of vessel assets” section in Note 2 — Summary of Significant Accounting Policies for impairment expense recorded during the three months ended March 31, 2020. On September 25, 2019, the Company entered into an agreement to sell the Genco Thunder, a 2007-built Panamax vessel, for $10,400 less a 2.0% broker commission payable to a third party. The sale was completed on March 5, 2020. The vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheets as of December 31, 2019. On February 3, 2020, the Company entered into an agreement to sell the Genco Charger, a 2005-built Handysize vessel, to a third party for $5,150 less a 1.0% commission payable to a third party. The sale of the Genco Charger was completed on February 24, 2020. On November 4, 2019, the Company entered into an agreement to sell the Genco Raptor, a 2007-built Panamax vessel, for $10,200 less a 2.0% broker commission payable to a third party. The sale was completed on December 11, 2019. The Genco Thunder, Genco Charger and Genco Raptor served as collateral under the $495 Million Credit facility; therefore $5,339, $3,471 and $6,045, respectively, of the net proceeds received from the sale will remain classified as restricted cash for 180 days following the respective sale dates, which has been reflected as restricted cash in the Condensed Consolidated Balance Sheets as of March 31, 2020. As of December 31, 2019, a total amount of $6,045 was reflected as restricted cash in the Condensed Consolidated Balance Sheets for the Genco Raptor. These amounts can be used towards the financing of a replacement vessel or vessels meeting certain requirements and added as collateral under the facility. If such a replacement vessel is not added as collateral within such 180 day period, the Company will be required to use the proceeds as a loan prepayment. On September 20, 2019, the Company entered into an agreement to sell the Genco Champion, a 2006-built Handysize vessel, for $6,600 less a 3.0% broker commission payable to a third party. The sale was completed on October 21, 2019. On August 2 , 2019, the Company entered into an agreement to sell the Genco Challenger, a 2003-built Handysize vessel, for $5,250 less a 2.0% broker commission payable to a third party. The sale was completed on October 10, 2019. The Genco Champion and Genco Challenger served as collateral under the $495 Million Credit Facility; therefore, $6,880 of the net proceeds from the sale of these two vessels was required to be used as a loan prepayment since a replacement vessels was not going to be added as collateral within 180 days following the respective sales dates. Refer to Note 7 — Debt for further information. On November 23, 2018, the Company entered into an agreement to sell the Genco Vigour, a 1999-built Panamax vessel, to a third party for $6,550 less a 2.0% broker commission payable to a third party. The sale was completed on January 28, 2019. The Genco Vigour did not serve as collateral under any of the Company’s credit facilities. Refer to Note 1 — General Information for a listing of the delivery dates for the vessels in the Company’s fleet. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 3 Months Ended |
Mar. 31, 2020 | |
NET LOSS PER SHARE | |
NET LOSS PER SHARE | 5 - NET LOSS PER SHARE The computation of basic net loss per share is based on the weighted-average number of common shares outstanding during the reporting period. The computation of diluted net loss per share assumes the vesting of nonvested stock awards and the exercise of stock options (refer to Note 15 — Stock-Based Compensation), for which the assumed proceeds upon vesting are deemed to be the amount of compensation cost attributable to future services and are not yet recognized using the treasury stock method, to the extent dilutive. There were 288,185 restricted stock units and 837,338 stock options excluded from the computation of diluted net loss per share during the three months ended March 31, 2020 because they were anti-dilutive. There were 242,722 restricted stock units and 496,418 stock options excluded from the computation of diluted net loss per share during the three months ended March 31, 2019 because they were anti-dilutive (refer to Note 15 — Stock-Based Compensation). The Company’s diluted net loss per share will also reflect the assumed conversion of the equity warrants issued when the Company emerged from bankruptcy on July 9, 2014 (the “Effective Date”) and MIP Warrants issued by the Company (refer to Note 15 — Stock-Based Compensation) if the impact is dilutive under the treasury stock method. The equity warrants have a 7-year term that commenced on the day following the Effective Date and are exercisable for one tenth of a share of the Company’s common stock. There were no unvested MIP Warrants and 3,936,761 equity warrants excluded from the computation of diluted net loss per share during the three months ended March 31, 2020 and 2019 because they were anti-dilutive. The components of the denominator for the calculation of basic and diluted net loss per share are as follows: For the Three Months Ended March 31, 2020 2019 Common shares outstanding, basic: Weighted-average common shares outstanding, basic 41,866,357 41,726,106 Common shares outstanding, diluted: Weighted-average common shares outstanding, basic 41,866,357 41,726,106 Dilutive effect of warrants — — Dilutive effect of stock options — — Dilutive effect of restricted stock awards — — Weighted-average common shares outstanding, diluted 41,866,357 41,726,106 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 6 - RELATED PARTY TRANSACTIONS During the three months ended March 31, 2020 and 2019, the Company did not identify any related party transactions. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2020 | |
DEBT | |
DEBT | 7 – DEBT Long-term debt, net consists of the following: March 31, December 31, 2020 2019 Principal amount $ 488,834 $ 495,824 Less: Unamortized debt financing costs (12,143) (13,094) Less: Current portion (72,962) (69,747) Long-term debt, net $ 403,729 $ 412,983 March 31, 2020 December 31, 2019 Unamortized Unamortized Debt Issuance Debt Issuance Principal Cost Principal Cost $495 Million Credit Facility $ 390,314 $ 10,791 $ 395,724 $ 11,642 $108 Million Credit Facility 98,520 1,352 100,100 1,452 Total debt $ 488,834 $ 12,143 $ 495,824 $ 13,094 As of March 31, 2020 and December 31, 2019, $12,143 and $13,094 of deferred financing costs, respectively, were presented as a direct deduction within the outstanding debt balance in the Company’s Condensed Consolidated Balance Sheets. Amortization expense for deferred financing costs was $951 and $915 for the three months ended March 31, 2020 and 2019, respectively. This amortization expense is recorded as a component of Interest expense in the Condensed Consolidated Statements of Operations. $495 Million Credit Facility On May 31, 2018, the Company entered into a five-year senior secured credit facility for an aggregate amount of up to $460,000 with Nordea Bank AB (publ), New York Branch (“Nordea”), as Administrative Agent and Security Agenty, the various lenders party thereto, and Nordea, Skandinaviska Enskilda Banken AB (publ), ABN AMRO Capital USA LLC, DVB Bank SE, Crédit Agricole Corporate & Investment Bank, and Danish Ship Finance A/S as Bookrunners and Mandated Lead Arrangers. Deutsche Bank AG Filiale Deutschlandgeschäft, and CTBC Bank Co. Ltd. are Co-Arrangers under this credit facility. On June 5, 2018, proceeds of $460,000 under this facility were used, together with cash on hand, to refinance all of the Company’s existing credit facilities (the $400 Million Credit Facility, $98 Million Credit Facility and 2014 Term Loan Facilities, as defined below) into one facility, and pay down the debt on seven of the Company’s oldest vessels, which have been identified for sale. On February 28, 2019, the Company entered into an Amendment and Restatement Agreement (the “Amendment”) for this credit facility (the “$495 Million Credit Facility”) with Nordea Bank AB (publ), New York Branch (“Nordea”), as Administrative Agent and Security Agent, the various lenders party thereto, and Nordea, Skandinaviska Enskilda Banken AB (publ), ABN AMRO Capital USA LLC, DVB Bank SE, Crédit Agricole Corporate & Investment Bank, and Danish Ship Finance A/S as Bookrunners and Mandated Lead Arrangers. The Amendment provides for an additional tranche up to $35,000 to finance a portion of the acquisitions, installations, and related costs for scrubbers for 17 of the Company’s Capesize vessels. On August 28, 2019, September 23, 2019 and March 12, 2020, the Company made total drawdowns of $9,300, $12,200 and $11,250, respectively, under the $35 Million tranche of the $495 Million Credit Facility. On November 15, 2019, the Company utilized $6,880 of the proceeds from the sale of the Genco Challenger and Genco Champion, which were sold during the fourth quarter of 2019, as a loan prepayment under the $495 Million Credit Facility. Additionally, on April 15, 2019, the Company utilized $4,947 of the proceeds from the sale of the Genco Cavalier as a loan prepayment under the $495 Million Credit Facility. Under the terms of the $495 Million Credit Facility, the amount received from the proceeds of the sale of a collateralized vessel can be used towards the financing of a replacement vessel or vessels meeting certain requirements and added as collateral under the facility. However, since a replacement vessel was not added as collateral within the 180 day period stipulated in the $495 Million Credit Facility, the Company was required to utilize the proceeds as a loan prepayment. As of March 31, 2020, there was no availability under the $495 Million Credit Facility. Total debt repayments of $16,660 and $15,000 were made during the three months ended March 31, 2020 and 2019 under the $495 Million Credit Facility, respectively. The $495 Million Credit Facility provides for the following key terms in relation to the $460,000 tranche: · The final maturity date is May 31, 2023. · Borrowings bear interest at LIBOR plus 3.25% through December 31, 2018 and LIBOR plus a range of 3.00% and 3.50% thereafter, dependent upon the Company’s ratio of total net indebtedness to the last twelve months EBITDA. Original scheduled amortization payments were $15,000 per quarter commencing on December 31, 2018, with a final payment of $190,000 due on the maturity date. As a result of the loan prepayments for the vessel sales as noted above, scheduled amortization payments were recalculated in accordance with the terms of the facility. Scheduled amortization payments were revised to $14,321 which commenced on December 30, 2019, with a final payment of $188,049 due on the maturity date · Scheduled amortization payments may be recalculated upon the Company’s request based on changes in collateral vessels, prepayments of the loan made as a result of a collateral vessel disposition as part of the Company’s fleet renewal program, or voluntary prepayments, subject in each case to a minimum repayment profile under which the loan will be repaid to nil when the average age of the vessels serving as collateral from time to time reaches 17 years. Mandatory prepayments are applied to remaining amortization payments pro rata, while voluntary prepayments are applied to remaining amortization payments in order of maturity. · Acquisitions and additional indebtedness are allowed subject to compliance with financial covenants, a collateral maintenance test, and other customary conditions. The $495 Million Credit Facility provides for the following key terms in relation to the $35,000 tranche: · The final maturity date is May 31, 2023. · Borrowings under the tranche may be incurred pursuant to multiple drawings on or prior to March 30, 2020 in minimum amounts of $5,000 and may be used to finance up to 90% of the scrubber costs noted above. · Borrowings under the tranche will bear interest at LIBOR plus 2.50% through September 30, 2019 and LIBOR plus a range of 2.25% to 2.75% thereafter, dependent upon the Company’s ratio of total net indebtedness to the last twelve months’ EBITDA. · The tranche is subject to equal consecutive quarterly repayments commencing on the last day of the fiscal quarter ending March 31, 2020 in an amount reflecting a repayment profile whereby the loans shall have been repaid after four years calculated from March 31, 2020. Assuming that the full $35,000 is borrowed, each quarterly repayment amount was originally scheduled to be equal to $2,500. However, as a result of the loan prepayments for the vessel sales as noted above, the availability under the $35,000 tranche was reduced. As of March 31, 2020, the Company drew down a total of $32,750, and this tranche is considered fully drawn. Scheduled quarterly repayments are $2,339. The $495 Million Credit Facility provides for the following key terms: · Pursuant to the November 5, 2019 amendment, the Company may pay dividends or repurchase stock to the extent the Company’s total cash and cash equivalents are greater than $100,000 and 18.75% of the Company’s total indebtedness, whichever is higher; if the Company cannot satisfy this condition, the Company is subject to a limitation of 50% of consolidated net income for the quarter preceding such dividend payment or stock repurchase if the collateral maintenance test ratio is 200% or less for such quarter, the full commitment of up to $35,000 for the scrubber tranche is assumed to be drawn. · Collateral vessels can be sold or disposed of without prepayment of the loan if a replacement vessel or vessels meeting certain requirements are included as collateral within 180 days of such sale or disposition. In addition: · we must be in compliance with the collateral maintenance test; · the replacement vessels must become collateral for the loan; and either · the replacement vessels must have an equal or greater appraised value that the collateral vessels for which they are substituted, or · ratio of the aggregate appraised value of the collateral vessels (including replacement vessels) to the outstanding loan amount after the collateral disposition (accounting for any prepayments of the loan by the time the replacement vessels become collateral vessels) must equal or exceed the aggregate appraised value of the collateral vessels to the outstanding loan before the collateral disposition. · Key financial covenants include: · minimum liquidity, with unrestricted cash and cash equivalents to equal or exceed the greater of $30,000 and 7.5% of total indebtedness (no restricted cash is required); · minimum working capital, with consolidated current assets (excluding restricted cash) minus consolidated current liabilities (excluding the current portion of long-term indebtedness) to be not less than zero; · debt to capitalization, with the ratio of total indebtedness to total capitalization to be not more than 70%; and · collateral maintenance, with the aggregate appraised value of collateral vessels to be at least 135% of the principal amount of the loan outstanding under the $495 Million Credit Facility. · Collateral includes the current vessels in the Company’s fleet other than the seven oldest vessels in the fleet which were identified for sale, collateral vessel earnings and insurance, and time charters in excess of 24 months in respect of the collateral vessels. As of March 31, 2020, the Company was in compliance with all of the financial covenants under the $495 Million Credit Facility. $108 Million Credit Facility On August 14, 2018, the Company entered into a five-year senior secured credit facility (the “108 Million Credit Facility”) with Cr é dit Agricole Corporate & Investment Bank (“CACIB”), as Structurer and Bookrunner, CACIB and Skandinaviska Enskilda Banken AB (Publ) as Mandate Lead Arrangers, CACIB as Administrative Agent and as Security Agent, and the other lenders party thereto from time to time. The Company has used proceeds from the $108 Million Credit Facility to finance a portion of the purchase price for the six vessels, including four Capesize Vessels and two Ultramax vessels, which were delivered to the Company during the three months ended September 30, 2018. These six vessels also serve as collateral under the $108 Million Credit Facility. The Company drew down a total of $108,000 during the three months ended September 30, 2018, which represents 45% of the appraised value of the six vessels. As of March 31, 2020, there was no availability under the $108 Million Credit Facility. Total debt repayments of $1,580 were made during the three months ended March 31, 2020 and 2019 under the $108 Million Credit Facility. The $108 Million Credit Facility provides for the following key terms: · The final maturity date of the $108 Million Credit Facility is August 14, 2023. · Borrowings under the $108 Million Credit Facility bear interest at LIBOR plus 2.50% through September 30, 2019 and LIBOR plus a range of 2.25% to 2.75% thereafter, dependent upon the Company’s ratio of total net indebtedness to the last twelve months EBITDA. · Scheduled amortization payments under the $108 Million Credit Facility reflect a repayment profile whereby the facility shall have been repaid to nil when the average vessel aged of the collateral vessels reaches 20 years. Based on this, the required repayments are $1,580 per quarter commencing on December 31, 2018, with a final balloon payment on the maturity date. · Mandatory prepayments are to be applied to remaining amortization payments pro rata, while voluntary prepayments are to be applied to remaining amortization payments in order of maturity. · Pursuant to the November 5, 2019 amendment, the Company may pay dividends or repurchase stock to the extent the Company’s total cash and cash equivalents are greater than $100,000 and 18.75% of its total indebtedness, whichever is higher; if the Company cannot satisfy this condition, the Company is subject to a limitation of 50% of consolidated net income for the quarter preceding such dividend payment or stock repurchase if the collateral maintenance test ratio is 200% or less for such quarter. · Acquisitions and additional indebtedness are allowed subject to compliance with financial covenants (including a collateral maintenance test) and other customary conditions. · Key financial covenants are substantially similar to those under the Company’s $495 Million Credit Facility and include: · minimum liquidity, with unrestricted cash and cash equivalents to equal or exceed the greater of $30,000 and 7.5% of total indebtedness; · minimum working capital, with consolidated current assets (excluding restricted cash) minus consolidated current liabilities (excluding the current portion of long-term indebtedness) to be not less than zero; · debt to capitalization, with the ratio of total indebtedness to total capitalization to be not more than 70%; and · collateral maintenance, with the aggregate appraised value of collateral vessels to be at least 135% of the principal amount of the loan outstanding under the $108 Million Credit Facility. As of March 31, 2020, the Company was in compliance with all of the financial covenants under the $108 Million Credit Facility. Interest rates The following table sets forth the effective interest rate associated with the interest expense for the Company’s debt facilities noted above, including the cost associated with unused commitment fees, if applicable. The following table also includes the range of interest rates on the debt, excluding the impact of unused commitment fees, if applicable: For the Three Months Ended March 31, 2020 2019 Effective Interest Rate 4.76 % 5.56 % Range of Interest Rates (excluding unused commitment fees) 3.45 % to 5.05 % 4.99 % to 5.76 % |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2020 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 8 - FAIR VALUE OF FINANCIAL INSTRUMENTS The fair values and carrying values of the Company’s financial instruments at March 31, 2020 and December 31, 2019 which are required to be disclosed at fair value, but not recorded at fair value, are noted below. March 31, 2020 December 31, 2019 Carrying Carrying Value Fair Value Value Fair Value Cash and cash equivalents $ 134,338 $ 134,338 $ 155,889 $ 155,889 Restricted cash 15,170 15,170 6,360 6,360 Floating rate debt 488,834 488,834 495,824 495,824 The carrying value of the borrowings under the $495 Million Credit Facility and the $108 Million Credit Facility as of March 31, 2020 and December 31, 2019 approximate their fair value due to the variable interest nature thereof as each of these credit facilities represent floating rate loans. Refer to Note 7 — Debt for further information regarding the Company’s credit facilities. The carrying amounts of the Company’s other financial instruments at March 31, 2020 and December 31, 2019 (principally Due from charterers and Accounts payable and accrued expenses) approximate fair values because of the relatively short maturity of these instruments. ASC Subtopic 820-10, “Fair Value Measurements & Disclosures” (“ASC 820-10”), applies to all assets and liabilities that are being measured and reported on a fair value basis. This guidance enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumption (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 requires significant management judgment. The three levels are defined as follows: · Level 1—Valuations based on quoted prices in active markets for identical instruments that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these instruments does not entail a significant degree of judgment. · Level 2—Valuations based on quoted prices in active markets for instruments that are similar, or quoted prices in markets that are not active for identical or similar instruments, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. · Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Cash and cash equivalents and restricted cash are considered Level 1 items, as they represent liquid assets with short-term maturities. Floating rate debt is considered to be a Level 2 item, as the Company considers the estimate of rates it could obtain for similar debt or based upon transactions amongst third parties. Nonrecurring fair value measurements include vessel impairment assessments completed during the interim period and at year-end as determined based on third-party quotes, which are based on various data points, including comparable sales of similar vessels, which are Level 2 inputs. During the three months ended March 31, 2020, the vessel assets for fourteen of the Company’s vessels were written down as part of the impairment recorded during the three months ended March 31, 2020. There was no vessel impairment recorded during the three months ended March 31, 2019. The vessels held for sale as of March 31, 2020 were written down as part of the impairment recorded during the three months ended March 31, 2020. The vessel held for sale as of December 31, 2019 was written down as part of the impairment recorded during the three months ended September 30, 2019. Refer to “Impairment of vessel assets” section in Note 2 — Summary of Significant Accounting Policies. Nonrecurring fair value measurements also include impairment tests conducted by the Company during the three months ended March 31, 2020 and 2019 of its operating lease right-of use assets. The fair value determination for the operating lease right-of-use assets was based on third party quotes, which is considered a Level 2 input. During the three months ended March 31, 2020 and 2019, there was no impairment of the operating lease right-of-use assets. Refer to Note 13 — Leases. The Company did not have any Level 3 financial assets or liabilities as of March 31, 2020 and December 31, 2019. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 3 Months Ended |
Mar. 31, 2020 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 9 - PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following: March 31, December 31, 2020 2019 Vessel stores $ 566 $ 638 Capitalized contract costs 2,516 1,952 Prepaid items 2,871 2,870 Insurance receivable 2,217 2,039 Advance to agents 1,218 1,162 Other 1,477 1,388 Total prepaid expenses and other current assets $ 10,865 $ 10,049 |
FIXED ASSETS
FIXED ASSETS | 3 Months Ended |
Mar. 31, 2020 | |
FIXED ASSETS | |
FIXED ASSETS | 10 - FIXED ASSETS Fixed assets, net consists of the following: March 31, December 31, 2020 2019 Fixed assets, at cost: Vessel equipment $ 6,543 $ 7,288 Furniture and fixtures 270 467 Leasehold improvements 539 100 Computer equipment 301 275 Total costs 7,653 8,130 Less: accumulated depreciation and amortization (1,704) (2,154) Total fixed assets, net $ 5,949 $ 5,976 Depreciation and amortization expense for fixed assets for the three months ended March 31, 2020 and 2019 was $345 and $154, respectively. |
ACCOUNTS PAYABLE AND ACCRUED EX
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 3 Months Ended |
Mar. 31, 2020 | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES. | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 11 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consist of the following: March 31, December 31, 2020 2019 Accounts payable $ 21,850 $ 26,040 Accrued general and administrative expenses 1,593 4,105 Accrued vessel operating expenses 10,727 19,459 Total accounts payable and accrued expenses $ 34,170 $ 49,604 |
VOYAGE REVENUE
VOYAGE REVENUE | 3 Months Ended |
Mar. 31, 2020 | |
VOYAGE REVENUE | |
VOYAGE REVENUE | 1 Total voyage revenues include revenue earned on fixed rate time charters, spot market voyage charters and spot market-related time charters, as well as the sale of bunkers consumed during short-term time charters. For the three months ended March 31, 2020 and 2019, the Company earned $98,336 and $93,464 of voyage revenue, respectively. Revenue for spot market voyage charters is recognized ratably over the total transit time of the voyage which begins when the vessel arrives at the loading port and ends at the time the discharge of cargo is completed at the discharge port in accordance with ASC 606. Spot market voyage charter agreements do not provide the charterers with substantive decision-making rights to direct how and for what purpose the vessel is used, therefore revenue from spot market voyage charters is not within the scope of ASC 842. Additionally, the Company has identified that the contract fulfillment costs of spot market voyage charters consist primarily of the fuel consumption that is incurred by the Company from the latter of the end of the previous vessel employment and the contract date until the arrival at the loading port in addition to any port expenses incurred prior to arrival at the load port, as well as any charter hire expenses for third-party vessels that are chartered in. The fuel consumption and any port expenses incurred prior to arrival at the load port are capitalized and recorded in Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets and are amortized ratably over the total transit time of the voyage from arrival at the loading port until the vessel departs from the discharge port and expensed as part of Voyage Expenses. Similarly, for any third party vessels that are chartered in, the charter hire expenses during this period are capitalized and recorded in Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets and are amortized and expensed as part of Charter hire expenses. Refer also to Note 9 — Prepaid Expenses and Other Current Assets. During time charter agreements, including fixed rate time charters and spot market-related time charters, the charterers have substantive decision-making rights to direct how and for what purpose the vessel is used. As such, the Company has identified that time charter agreements contain a lease in accordance with ASC 842. During time charter agreements, the Company is responsible for operating and maintaining the vessels. These costs are recorded as vessel operating expenses in the Condensed Consolidated Statements of Operation. The Company has elected the practical expedient that allows the Company to combine lease and non-lease components under ASC 842 as the Company believes (1) the timing and pattern of recognizing revenues for operating the vessel is the same as the timing and pattern of recognizing vessel leasing revenue; and (2) the lease component, if accounted for separately, would be classified as an operating lease. Total voyage revenue recognized in the Condensed Consolidated Statements of Operations includes the following: For the Three Months Ended March 31, 2020 2019 Lease revenue $ 19,151 $ 23,390 Spot market voyage revenue 79,185 70,074 Total voyage revenues $ 98,336 $ 93,464 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2020 | |
LEASES | |
LEASES | 13 - LEASES Effective April 4, 2011, the Company entered into a seven-year sub-sublease agreement for its main office in New York, New York. The term of the sub-sublease commenced June 1, 2011, with a free base rental period until October 31, 2011. Following the expiration of the free base rental period, the monthly base rental payments were $82 per month until May 31, 2015 and thereafter were $90 per month until the end of the seven-year term. Pursuant to the sub-sublease agreement, the sublessor was obligated to contribute $472 toward the cost of the Company’s alterations to the sub-subleased office space. The Company has also entered into a direct lease with the over-landlord of such office space that commenced immediately upon the expiration of such sub-sublease agreement, for a term covering the period from May 1, 2018 to September 30, 2025; the direct lease provided for a free base rental period from May 1, 2018 to September 30, 2018. Following the expiration of the free base rental period, the monthly base rental payments are $186 per month from October 1, 2018 to April 30, 2023 and $204 per month from May 1, 2023 to September 30, 2025. For accounting purposes, the sub-sublease agreement and direct lease agreement with the landlord constitute one lease agreement. In addition, during October 2017 the Company entered into a lease for office space in Singapore that expired in January 2019. A lease was signed for a new office space in Singapore effective January 17, 2019 for a three-year term. Lastly, during July 2018, the Company entered into a lease for office space in Copenhagen, which commenced on July 1, 2018 and ended on April 30, 2019. A lease was signed for a new office space in Copenhagen effective May 1, 2019 for a minimum period ending May 1, 2023. The Company adopted ASC 842 using the transition method on January 1, 2019 and has identified these leases as operating leases. Variable rent expense, such as utilities and escalation expenses, are excluded from the determination of the operating lease liability, as the Company has deemed these insignificant. The Company used its incremental borrowing rate as the discount rate under ASC 842 since the rate implicit in the lease cannot be readily determined. On June 14, 2019, the Company entered into a sublease agreement for a portion of the leased space for its main office in New York, New York that commenced on July 26, 2019 and will end on September 29, 2025. There is a free base rental period for the first four and a half months commencing on July 26, 2019. Following the expiration of the free base rental period, the monthly base sublease income will be $102 per month until September 29, 2025. The sublease income for the portion of the leased space is less than the lease payments due for the space, which has been identified as an indicator of impairment under ASC 360. As such, the right-of-use asset for the subleased portion of the space was written down to its fair value during the second quarter of 2019 which resulted in $223 of impairment charges which was recorded in Impairment of right-of-asset in the Condensed Consolidated Statements of Operation during the three months ended June 30, 2019. Sublease income is recorded net with the total operating lease costs in General and administrative expenses in the Condensed Consolidated Statements of Operation. There was $306 of sublease income recorded during the three months ended March 31, 2020. There was no sublease income recorded during the three months ended March 31, 2019. Total operating lease costs recorded during the three months ended March 31, 2020 and 2019 were $483 and $452, respectively, which was recorded in General and administrative expenses in the Condensed Consolidated Statements of Operations. Supplemental Condensed Consolidated Balance Sheet information related to the Company’s operating leases as of March 31, 2020 are as follows: March 31, 2020 Operating Lease: Operating lease right-of-use asset $ 7,904 Current operating lease liabilities $ 1,698 Long-term operating lease liabilities 9,393 Total operating lease liabilities $ 11,091 Weighted average remaining lease term (years) 5.50 Weighted average discount rate 5.15 % Maturities of operating lease liabilities as of March 31, 2020 are as follows: March 31, 2020 Remainder of 2020 $ 1,672 2021 2,230 2022 2,230 2023 2,378 2024 2,453 Thereafter 1,839 Total lease payments 12,802 Less imputed interest (1,711) Present value of lease liabilities $ 11,091 Supplemental Condensed Consolidated Cash Flow information related to leases are as follows: For the Three Months Ended March 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating lease $ 557 $ 557 During the second quarter of 2018, the Company began chartering-in third-party vessels. Under ASC 842, the Company is the lessee in these agreements. The Company has elected the practical expedient under ASC 842 to not recognize right-of-use assets and lease liabilities for short-term leases. During the three months ended March 31, 2020 and 2019, all charter-in agreements for third-party vessels were less than twelve months and considered short-term leases. Refer to Note 2 — Summary of Significant Accounting Policies for the charter hire expenses recorded during the three months ended March 31, 2020 and 2019 for these charter-in agreements. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 14 – COMMITMENTS AND CONTINGENCIES During the second half of 2018, the Company entered into agreements for the purchase of ballast water treatments systems (“BWTS”) for 42 of its vessels. The cost of these systems will vary based on the size and specifications of each vessel and whether the systems will be installed in China during the vessels’ scheduled drydockings. Based on the contractual purchase price of the BWTS and the estimated installation fees, the Company estimates the cost of the systems to be approximately $0.9 million for Capesize vessels, $0.6 million for Supramax vessels and $0.5 million for Handysize vessels. These costs will be capitalized and depreciated over the remainder of the life of the vessel. The Company recorded cumulatively $14,225 and $12,783 in Vessel assets in the Condensed Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019, respectively, related to BWTS additions. On December 21, 2018, the Company entered into agreements to install scrubbers on its 17 Capesize vessels. The Company completed scrubber installation on 16 of its Capesize vessels during 2019 and the remaining Capesize vessel on January 17, 2020. The cost of each scrubber varied according to the specifications of the Company’s vessels and technical aspects of the installation, among other variables. These costs will be capitalized and depreciated over the remainder of the life of the vessel. The Company recorded cumulatively $42,477 and $41,270 in Vessel assets in the Condensed Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019, respectively, related to scrubber additions. The Company entered into an amendment to the $495 Million Credit Facility to provide financing to cover a portion of these expenses; refer to Note 7 — Debt for further information. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2020 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 15 - STOCK-BASED COMPENSATION 2014 Management Incentive Plan On the Effective Date, pursuant to the Chapter 11 Plan, the Company adopted the Genco Shipping & Trading Limited 2014 Management Incentive Plan (the “MIP”). An aggregate of 966,806 shares of Common Stock were available for award under the MIP. Awards under the MIP took the form of restricted stock grants and three tiers of MIP Warrants with staggered strike prices based on increasing equity values. The number of shares of common stock available under the Plan represented approximately 1.8% of the shares of post-emergence Common Stock outstanding as of the Effective Date on a fully-diluted basis. Awards under the MIP were available to eligible employees, non-employee directors and/or officers of the Company and its subsidiaries (collectively, “Eligible Individuals”). Under the MIP, a committee appointed by the Board from time to time (or, in the absence of such a committee, the Board) (in either case, the “Plan Committee”) could grant a variety of stock-based incentive awards, as the Plan Committee deems appropriate, to Eligible Individuals. The MIP Warrants are exercisable on a cashless basis and contain customary anti-dilution protection in the event of any stock split, reverse stock split, stock dividend, reclassification, dividend or other distributions (including, but not limited to, cash dividends), or business combination transaction. On August 7, 2014, pursuant to the MIP, certain individuals were granted MIP Warrants whereby each warrant can be converted on a cashless basis for the amount in excess of the respective strike price. The MIP Warrants were issued in three tranches for 238,066, 246,701 and 370,979 shares and have exercise prices, as adjusted for dividends declared during the fourth quarter of 2019 and the first quarter of 2020, of $240.89221 (the “$240.89 Warrants”), $267.11051 (the “$267.11 Warrants”) and $317.87359 (the “$317.87 Warrants”) per whole share, respectively. The fair value of each warrant upon emergence from bankruptcy was $7.22 for the $240.89 Warrants, $6.63 for the $267.11 Warrants and $5.63 for the $317.87 Warrants. The warrant values were based upon a calculation using the Black-Scholes-Merton option pricing formula. This model uses inputs such as the underlying price of the shares issued when the warrant is exercised, volatility, cost of capital interest rate and expected life of the instrument. The Company has determined that the warrants should be classified within Level 3 of the fair value hierarchy by evaluating each input for the Black-Scholes-Merton option pricing formula against the fair value hierarchy criteria and using the lowest level of input as the basis for the fair value classification. The Black-Scholes-Merton option pricing formula used a volatility of 43.91% (representing the six-year volatility of a peer group), a risk-free interest rate of 1.85% and a dividend rate of 0%. The aggregate fair value of these awards upon emergence from bankruptcy was $54,436. The warrants vested 33.33% on each of the first three anniversaries of the grant date, with accelerated vesting upon a change in control of the Company. For the three months ended March 31, 2020 and 2019, there was no amortization expense of the fair value of these warrants. As of March 31, 2020, there was no unamortized stock-based compensation for the warrants and all warrants were vested. The following table summarizes certain information about the warrants outstanding as of March 31, 2020: Warrants Outstanding and Exercisable, March 31, 2020 Weighted Weighted Average Average Remaining Number of Exercise Contractual Warrants Price Life 8,557,461 $ 281.82 0.35 As of March 31, 2020 and December 31, 2019, a total of 8,557,461 of warrants were outstanding. 2015 Equity Incentive Plan On June 26, 2015, the Company’s Board of Directors approved the 2015 Equity Incentive Plan for awards with respect to an aggregate of 400,000 shares of common stock (the “2015 Plan”). Under the 2015 Plan, the Company’s Board of Directors, the compensation committee, or another designated committee of the Board of Directors may grant a variety of stock-based incentive awards to the Company’s officers, directors, employees, and consultants. Awards may consist of stock options, stock appreciation rights, dividend equivalent rights, restricted (nonvested) stock, restricted stock units, and unrestricted stock. As of March 31, 2020, the Company has awarded restricted stock units, restricted stock and stock options under the 2015 Plan. On March 23, 2017, the Board of Directors approved an amendment and restatement of the 2015 Plan. This amendment and restatement increased the number of shares available for awards under the plan from 400,000 to 2,750,000, subject to shareholder approval; set the annual limit for awards to non-employee directors and other individuals as 500,000 and 1,000,000 shares, respectively; and modified the change in control definition. The Company’s shareholders approved the increase in the number of shares at the Company’s 2017 Annual Meeting of Shareholders on May 17, 2017. Stock Options On March 23, 2017, the Company issued options to purchase 133,000 of the Company’s shares of common stock to John C. Wobensmith, Chief Executive Officer and President, with an exercise price of $10.805 per share, as adjusted for the special dividend declared on November 5, 2019. One third of the options become exercisable on each of the first three anniversaries of October 15, 2016, with accelerated vesting upon a change in control of the Company, and all unexercised options expire on the sixth anniversary of the grant date. The fair value of each option was estimated on the date of the grant using the Black-Scholes-Merton pricing formula, resulting in a value of $6.41 per share, or $853 in the aggregate. The assumptions used in the Black-Scholes-Merton option pricing formula are as follows: volatility of 79.80% (representing a blend of the Company’s historical volatility and a peer-based volatility estimate due to limited trading history since emergence from bankruptcy), a risk-free interest rate of 1.68%, a dividend yield of 0%, and expected life of 3.78 years (determined using the simplified method as outlined in Staff Accounting Bulletin 14 – Share-Based Payment (“SAB Topic 14”) due to lack of historical exercise data). On February 27, 2018, the Company issued options to purchase 122,608 of the Company’s shares of common stock to certain individuals with an exercise price of $13.365 per share, as adjusted for the special dividend declared on November 5, 2019. One third of the options become exercisable on each of the first three anniversaries of February 27, 2018, with accelerated vesting that may occur following a change in control of the Company, and all unexercised options expire on the sixth anniversary of the grant date. The fair value of each option was estimated on the date of the grant using the Black-Scholes-Merton pricing formula, resulting in a value of $7.55 per share, or $926 in the aggregate. The assumptions used in the Black-Scholes-Merton option pricing formula are as follows: volatility of 71.94% (representing a blend of the Company’s historical volatility and a peer-based volatility estimate due to limited trading history post recapitalization of the Company in November 2016), a risk-free interest rate of 2.53%, a dividend yield of 0%, and expected life of 4.00 years (determined using the simplified method as outlined in SAB Topic 14 due to lack of historical exercise data). On March 4, 2019, the Company issued options to purchase 240,540 of the Company’s shares of common stock to certain individuals with an exercise price of $8.065 per share, as adjusted for the special dividend declared on November 5, 2019. One third of the options become exercisable on each of the first three anniversaries of March 4, 2019, with accelerated vesting that may occur following a change in control of the Company, and all unexercised options expire on the sixth anniversary of the grant date. The fair value of each option was estimated on the date of the grant using the Black-Scholes-Merton pricing formula, resulting in a value of $3.76 per share, or $904 in the aggregate. The assumptions used in the Black-Scholes-Merton option pricing formula are as follows: volatility of 55.23% (representing the Company’s historical volatility), a risk-free interest rate of 2.49%, a dividend yield of 0%, and expected life of 4.00 years (determined using the simplified method as outlined in SAB Topic 14 due to lack of historical exercise data). On February 25, 2020, the Company issued options to purchase 344,568 of the Company’s shares of common stock to certain individuals with an exercise price of $7.06 per share. One third of the options become exercisable on each of the first three anniversaries of February 25, 2020, with accelerated vesting that may occur following a change in control of the Company, and all unexercised options expire on the sixth anniversary of the grant date. The fair value of each option was estimated on the date of the grant using the Cox-Ross-Rubinstein pricing formula, resulting in a value of $2.01 per share, or $693 in the aggregate. The assumptions used in the Cox-Ross-Rubinstein option pricing formula are as follows: volatility of 53.91% (representing the Company’s historical volatility), a risk-free interest rate of 1.41%, a dividend yield of 7.13%, and expected life of 4 years (determined using the simplified method as outlined in SAB Topic 14 due to lack of historical exercise data). For the three months ended March 31, 2020 and 2019, the Company recognized amortization expense of the fair value of these options, which is included in General and administrative expenses, as follows: For the Three Months Ended March 31, 2020 2019 General and administrative expenses $ 205 $ 181 Amortization of the unamortized stock-based compensation balance of $1,072 as of March 31, 2020 is expected to be expensed $582, $367, $111 and $12 during the remainder of 2020 and during the years ended December 31, 2021, 2022 and 2023, respectively. The following table summarizes the unvested option activity for the three months ended March 31, 2020: Weighted Weighted Number Average Average of Exercise Fair Options Price Value Outstanding at January 1, 2020 - Unvested 322,279 $ 9.41 4.72 Granted 344,568 7.06 2.01 Exercisable (119,923) 9.87 5.05 Exercised — — — Forfeited (3,378) 8.07 3.76 Outstanding at March 31, 2020 - Unvested 543,546 $ 7.83 $ 2.94 The following table summarizes certain information about the options outstanding as of March 31, 2020: Options Outstanding and Unvested, Options Outstanding and Exercisable, March 31, 2020 March 31, 2020 Weighted Weighted Weighted Average Weighted Average Weighted Average Exercise Price of Average Remaining Average Remaining Outstanding Number of Exercise Contractual Number of Exercise Contractual Options Options Price Life Options Price Life $ 8.86 543,546 $ 7.83 5.47 293,792 $ 10.78 3.76 As of March 31, 2020 and December 31, 2019, a total of 837,338 and 496,148 stock options were outstanding, respectively. Restricted Stock Units The Company has issued restricted stock units (“RSUs”) under the 2015 Plan to certain members of the Board of Directors and certain executives and employees of the Company, which represent the right to receive a share of common stock, or in the sole discretion of the Company’s Compensation Committee, the value of a share of common stock on the date that the RSU vests. As of March 31, 2020 and December 31, 2019, 373,588 and 326,247 shares of the Company’s common stock were outstanding in respect of the RSUs, respectively. Such shares of common stock will only be issued in respect of vested RSUs issued to directors when the director’s service with the Company as a director terminates. Such shares of common stock will only be issued to executives and employees when their RSUs vest under the terms of their grant agreements and the amended 2015 Plan described above. The RSUs that have been issued to certain members of the Board of Directors generally vest on the date of the annual shareholders meeting of the Company following the date of the grant. In lieu of cash dividends issued for vested and nonvested shares held by certain members of the Board of Directors, the Company will grant additional vested and nonvested RSUs, respectively, which are calculated by dividing the amount of the dividend by the closing price per share of the Company’s common stock on the dividend payment date and will have the same terms as other RSUs issued to members of the Board of Directors. The RSUs that have been issued to other individuals vest ratably on each of the three anniversaries of the determined vesting date. The table below summarizes the Company’s unvested RSUs for the three months ended March 31, 2020: Weighted Number of Average Grant RSUs Date Price Outstanding at January 1, 2020 162,096 $ 9.26 Granted 177,911 7.00 Vested (50,332) 9.48 Forfeited (1,490) 8.39 Outstanding at March 31, 2020 288,185 $ 7.83 The total fair value of the RSUs that vested during the three months ended March 31, 2020 and 2019 was $351 and $107, respectively. The total fair value is calculated as the number of shares vested during the period multiplied by the fair value on the vesting date. The following table summarizes certain information of the RSUs unvested and vested as of March 31, 2020: Unvested RSUs Vested RSUs March 31, 2020 March 31, 2020 Weighted Weighted Average Weighted Average Remaining Average Number of Grant Date Contractual Number of Grant Date RSUs Price Life RSUs Price 288,185 $ 7.83 2.27 472,555 $ 11.26 The Company is amortizing these grants over the applicable vesting periods, net of anticipated forfeitures. As of March 31, 2020, unrecognized compensation cost of $1,557 related to RSUs will be recognized over a weighted-average period of 2.27 years. For the three months ended March 31, 2020 and 2019, the Company recognized nonvested stock amortization expense for the RSUs, which is included in General and administrative expenses as follows: For the Three Months Ended March 31, 2020 2019 General and administrative expenses $ 276 $ 271 |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 3 Months Ended |
Mar. 31, 2020 | |
LEGAL PROCEEDINGS | |
LEGAL PROCEEDINGS | 16 - LEGAL PROCEEDINGS From time to time, the Company may be subject to legal proceedings and claims in the ordinary course of its business, principally personal injury and property casualty claims. Such claims, even if lacking merit, could result in the expenditure of significant financial and managerial resources. The Company is not aware of any legal proceedings or claims that it believes will have, individually or in the aggregate, a material effect on the Company, its financial condition, results of operations or cash flows. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2020 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 17 – SUBSEQUENT EVENTS On May 6, 2020, the Company announced a regular quarterly dividend of $0.02 per share to be paid on or about May 28, 2020 to shareholders of record as of May 18, 2020. The aggregate amount of the dividend is expected to be approximately $0.8 million, which the Company anticipates will be funded from cash on hand at the time the payment is to be made. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of consolidation | Principles of consolidation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which includes the accounts of GS&T and its direct and indirect wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Basis of presentation | Basis of presentation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management of the Company, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and operating results have been included in the statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2019 (the “2019 10-K”). The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the operating results to be expected for the year ending December 31, 2020. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include vessel valuations, the valuation of amounts due from charterers, residual value of vessels, useful life of vessels and the fair value of derivative instruments, if any. Actual results could differ from those estimates. |
Segment reporting | Segment reporting The Company reports financial information and evaluates its operations by voyage revenues and not by the length of ship employment for its customers, i.e., spot or time charters. Each of the Company’s vessels serve the same type of customer, have similar operations and maintenance requirements, operate in the same regulatory environment, and are subject to similar economic characteristics. Based on this, the Company has determined that it operates in one reportable segment, the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels. |
Restricted cash | Restricted cash Current and non-current restricted cash includes cash that is restricted pursuant to our credit facilities. Refer to Note 7 — Debt. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same amounts shown in the Condensed Consolidated Statements of Cash Flows: March 31, December 31, 2020 2019 Cash and cash equivalents $ 134,338 $ 155,889 Restricted cash - current 14,855 6,045 Restricted cash - noncurrent 315 315 Cash, cash equivalents and restricted cash $ 149,508 $ 162,249 |
Vessels held for sale | Vessels held for sale The Company’s Board of Directors has approved a strategy of divesting specifically identified older, less fuel-efficient vessels as part of a fleet renewal program to streamline and modernize the Company’s fleet. On March 2, 2020, the Company entered into an agreement to sell the Baltic Wind and on March 20, 2020, the Company entered into agreements to sell the Baltic Breeze and Genco Bay. The relevant vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheets as of March 31, 2020. The Baltic Wind, Baltic Breeze and Genco Bay are expected to be sold during the second and third quarters of 2020. Refer to Note 4 — Vessel Acquisitions and Dispositions for details of the agreements. On September 25, 2019, the Company entered into an agreement to sell the Genco Thunder, and the relevant vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheets as of December 31, 2019. This vessel was sold on March 5, 2020. Refer to Note 4 — Vessel Acquisitions and Dispositions for details of the agreement. |
Vessels, net | Vessels, net Vessels, net is stated at cost less accumulated depreciation. Included in vessel costs are acquisition costs directly attributable to the acquisition of a vessel and expenditures made to prepare the vessel for its initial voyage, including the purchase of exhaust gas cleaning systems (“scrubbers”) and ballast water treatment systems. The Company also capitalizes interest costs for a vessel under construction as a cost that is directly attributable to the acquisition of a vessel. Vessels are depreciated on a straight-line basis over their estimated useful lives, determined to be 25 years from the date of initial delivery from the shipyard. Depreciation expense for vessels for the three months ended March 31, 2020 and 2019 was $15,833 and $16,488, respectively. Depreciation expense is calculated based on cost less the estimated residual scrap value. The costs of significant replacements, renewals and betterments are capitalized and depreciated over the shorter of the vessel’s remaining estimated useful life or the estimated life of the renewal or betterment. Undepreciated cost of any asset component being replaced that was acquired after the initial vessel purchase is written off as a component of vessel operating expense. Expenditures for routine maintenance and repairs are expensed as incurred. Scrap value is estimated by the Company by taking the estimated scrap value of $310 per lightweight ton (“lwt”) times the weight of the ship noted in lwt. |
Deferred revenue | Deferred revenue Deferred revenue primarily relates to cash received from charterers prior to it being earned. These amounts are recognized as income when earned. Additionally, deferred revenue includes estimated customer claims, mainly due to time charter performance issues. As of March 31, 2020 and December 31, 2019, the Company had an accrual of $303 and $577, respectively, related to these estimated customer claims. |
Revenue recognition | Revenue recognition Since the Company’s inception, revenues have been generated from time charter agreements, spot market voyage charters, pool agreements and spot market-related time charters. Voyage revenues also include the sale of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement. Time charters A time charter involves placing a vessel at the charterer’s disposal for a set period of time during which the charterer may use the vessel in return for the payment by the charterer of a specified daily hire rate, including any ballast bonus payments received pursuant to the time charter agreement. Spot market-related time charters are the same as other time charter agreements, except the time charter rates are variable and are based on a percentage of the average daily rates as published by the Baltic Dry Index (“BDI”). The Company records time charter revenues, including spot market-related time charters, over the term of the charter as service is provided. Revenues are recognized on a straight-line basis as the average revenue over the term of the respective time charter agreement for which the performance obligations are satisfied beginning when the vessel is delivered to the charterer until it is redelivered back to the Company. The Company records spot market-related time charter revenues over the term of the charter as service is provided based on the rate determined based on the BDI for each respective billing period. As such, the revenue earned by the Company’s vessels that are on spot market-related time charters is subject to fluctuations of the spot market. Time charter contracts, including spot market-related time charters, are considered operating leases and therefore do not fall under the scope of Accounting Standards Codification (“ASC”) 606 – Revenue from Contracts with Customers (“ASC 606”) because (i) the vessel is an identifiable asset; (ii) the Company does not have substantive substitution rights; and (iii) the charterer has the right to control the use of the vessel during the term of the contract and derives economic benefit from such use. The Company has identified that time charter agreements, including fixed rate time charters and spot market-related time charters, contain a lease in accordance with ASC 842 — Leases, refer to Note 12 — Voyage Revenues for further discussion. Spot market voyage charters In a spot market voyage charter contract, the charterer hires the vessel to transport a specific agreed-upon cargo for a single voyage, which may contain multiple load ports and discharge ports. The consideration in such a contract is determined on the basis of a freight rate per metric ton of cargo carried or occasionally on a lump sum basis. The charter party generally has a minimum amount of cargo. The charterer is liable for any short loading of cargo or "dead" freight. The contract generally has a "demurrage" or "despatch" clause. As per this clause, the charterer reimburses the Company for any potential delays exceeding the allowed laytime as per the charter party clause at the ports visited which is recorded as demurrage revenue. Conversely, the charterer is given credit if the loading/discharging activities happen within the allowed laytime known as despatch resulting in a reduction in revenue. The voyage contracts generally have variable consideration in the form of demurrage or despatch. The amount of revenue earned as demurrage or despatch paid by the Company is not a material component of the Company’s revenue for the three months ended March 31, 2020 and 2019. Pursuant to the revenue recognition guidance as disclosed in Note 12 — Voyage Revenues, revenue for spot market voyage charters is recognized ratably over the total transit time of each voyage, which commences at the time the vessel arrives at the loading port and ends at the time the discharge of cargo is completed at the discharge port. Vessel Pools At March 31, 2020 and December 31, 2019, the Company did not have any of its vessels in vessel pools. Under pool arrangements, the vessels operate under a time charter agreement whereby the cost of bunkers and port expenses are borne by the pool and operating costs including crews, maintenance and insurance are typically paid by the owner of the vessel. Since the members of the pool share in the revenue less voyage expenses generated by the entire group of vessels in the pool, and the pool operates in the spot market, the revenue earned by these vessels is subject to the fluctuations of the spot market. The Company recognizes revenue from these pool arrangements based on its portion of the net distributions reported by the relevant pool, which represents the net voyage revenue of the pool after voyage expenses and pool manager fees. |
Voyage expense recognition | Voyage expense recognition In time charters, spot market-related time charters and pool agreements, operating costs including crews, maintenance and insurance are typically paid by the owner of the vessel and specified voyage costs such as fuel and port charges are paid by the charterer. These expenses are borne by the Company during spot market voyage charters. As such, there are significantly higher voyage expenses for spot market voyage charters as compared to time charters, spot market-related time charters and pool agreements. Refer to Note 12 — Voyage Revenues for further discussion of the accounting for fuel expenses for spot market voyage charters. There are certain other non-specified voyage expenses, such as commissions, which are typically borne by the Company. At the inception of a time charter, the Company records the difference between the cost of bunker fuel delivered by the terminating charterer and the bunker fuel sold to the new charterer as a gain or loss within voyage expenses. Additionally, the Company records lower of cost and net realizable value adjustments to re-value the bunker fuel on a quarterly basis for certain time charter agreements where the inventory is subject to gains and losses. These differences in bunkers, including any lower of cost and net realizable value adjustments, resulted in a net loss of $841 and $350 during the three months ended March 31, 2020 and 2019, respectively. Additionally, voyage expenses include the cost of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement. |
Charter hire expenses | Charter hire expenses The costs to charter-in these vessels, which primarily include the daily charter hire rate net of commissions or net freight revenue, are recorded as Charter hire expenses. The Company recorded $3,075 and $2,419 of charter hire expenses during the three months ended March 31, 2020 and 2019, respectively. |
Impairment of vessel assets | Impairment of vessel assets During the three months ended March 31, 2020 and 2019, the Company recorded $112,814 and $0, respectively, related to the impairment of vessel assets in accordance with ASC 360 — “Property, Plant and Equipment” (“ASC 360”). At March 31, 2020, the Company determined that the expected estimated future undiscounted cash flows for four of our Supramax vessels, the Genco Picardy, the Genco Predator, the Genco Provence and the Genco Warrior, did not exceed the net book value of these vessels as of March 31, 2020. The Company adjusted the carrying value of these vessels to their respective fair market values as of March 31, 2020. This resulted in an impairment loss of $27,046 during the three months ended March 31, 2020. On February 24, 2020, the Board of Directors determined to dispose of the Company’s following ten Handysize vessels: the Baltic Hare, the Baltic Fox, the Baltic Wind, the Baltic Cove, the Baltic Breeze, the Genco Ocean, the Genco Bay, the Genco Avra, the Genco Mare and the Genco Spirit , at times and on terms to be determined in the future. Given this decision, and that the revised estimated future undiscounted cash flows for each of these older vessels did not exceed the net book value for each vessel given the estimated probabilities of whether the vessels will be sold, the Company adjusted the values of these older vessels to their respective fair market values during the three months ended March 31, 2020. Subsequent to February 24, 2020, the Company has entered into agreements to sell three of these vessels during the three months ended March 31, 2020, namely the Baltic Wind, the Baltic Breeze and the Genco Bay, which were adjusted to their net sales price. This resulted in an impairment loss of $85,768 during the three months ended March 31, 2020. Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the vessel sales. |
Loss (gain) on sale of vessels | Loss (gain) on sale of vessels During the three months ended March 31, 2020, the Company recorded a net loss of $486 related to the sale of vessels. The net loss of $486 recorded during the three months ended March 31, 2020 related primarily to the sale of the Genco Charger and Genco Thunder. During the three months ended March 31, 2019, the Company recorded a net gain of $611 related to the sale of vessels. The net gain of $611 recorded during the three months ended March 31, 2019 related primarily to the sale of the Genco Vigour. |
Recent accounting pronouncements | Recent accounting pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-13, “Disclosure Framework: Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-03”),” which change the disclosure requirements for fair value measurements by removing, adding, and modifying certain disclosures. This ASU is effective for fiscal years beginning after December 15, 2019, and for interim periods within that year. Early adoption is permitted for any eliminated or modified disclosures upon issuance of this ASU. The Company has evaluated the impact of the adoption of ASU 2018-03 and has determined that there is no effect on its condensed consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments—Credit Losses" ("ASU 2016-13"). ASU 2016-13 amends the current financial instrument impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. ASU 2016-13 was effective on January 1, 2020, with early adoption permitted. The Company adopted ASU 2016-13 during the first quarter of 2020 and it did not have a material impact on the Company’s condensed consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”).” ASU 2020-04 provides temporary optional expedients and exceptions to the guidance in U.S. GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. This ASU is effective for adoption at any time between March 12, 2020 and December 31, 2022. The Company is currently evaluating the impact of this adoption on its condensed consolidated financial statements and related disclosures. |
GENERAL INFORMATION (Tables)
GENERAL INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
GENERAL INFORMATION | |
Schedule of wholly owned ship-owning subsidiaries | Below is the list of the Company’s wholly owned ship-owning subsidiaries as of March 31, 2020: Wholly Owned Subsidiaries Vessel Acquired Dwt Delivery Date Year Built Genco Augustus Limited Genco Augustus 180,151 8/17/07 Genco Tiberius Limited Genco Tiberius 175,874 8/28/07 Genco London Limited Genco London 177,833 9/28/07 Genco Titus Limited Genco Titus 177,729 11/15/07 Genco Warrior Limited Genco Warrior 55,435 12/17/07 Genco Predator Limited Genco Predator 55,407 12/20/07 Genco Hunter Limited Genco Hunter 58,729 12/20/07 Genco Constantine Limited Genco Constantine 180,183 2/21/08 Genco Hadrian Limited Genco Hadrian 169,025 12/29/08 Genco Commodus Limited Genco Commodus 169,098 7/22/09 Genco Maximus Limited Genco Maximus 169,025 9/18/09 Genco Claudius Limited Genco Claudius 169,001 12/30/09 Genco Bay Limited Genco Bay 34,296 8/24/10 Genco Ocean Limited Genco Ocean 34,409 7/26/10 Genco Avra Limited Genco Avra 34,391 5/12/11 Genco Mare Limited Genco Mare 34,428 7/20/11 Genco Spirit Limited Genco Spirit 34,432 11/10/11 Genco Aquitaine Limited Genco Aquitaine 57,981 8/18/10 Genco Ardennes Limited Genco Ardennes 58,018 8/31/10 Genco Auvergne Limited Genco Auvergne 58,020 8/16/10 Genco Bourgogne Limited Genco Bourgogne 58,018 8/24/10 Genco Brittany Limited Genco Brittany 58,018 9/23/10 Genco Languedoc Limited Genco Languedoc 58,018 9/29/10 Genco Loire Limited Genco Loire 53,430 8/4/10 Genco Lorraine Limited Genco Lorraine 53,417 7/29/10 Genco Normandy Limited Genco Normandy 53,596 8/10/10 Genco Picardy Limited Genco Picardy 55,257 8/16/10 Genco Provence Limited Genco Provence 55,317 8/23/10 Genco Pyrenees Limited Genco Pyrenees 58,018 8/10/10 Genco Rhone Limited Genco Rhone 58,018 3/29/11 Genco Weatherly Limited Genco Weatherly 61,556 7/26/18 Genco Columbia Limited Genco Columbia 60,294 9/10/18 Genco Endeavour Limited Genco Endeavour 181,060 8/15/18 Genco Resolute Limited Genco Resolute 181,060 8/14/18 Genco Defender Limited Genco Defender 180,021 9/6/18 Genco Liberty Limited Genco Liberty 180,032 9/11/18 Baltic Lion Limited Baltic Lion 179,185 4/8/15 (1) Baltic Tiger Limited Genco Tiger 179,185 4/8/15 (1) Baltic Leopard Limited Baltic Leopard 53,446 4/8/10 Baltic Panther Limited Baltic Panther 53,350 4/29/10 Baltic Cougar Limited Baltic Cougar 53,432 5/28/10 Baltic Jaguar Limited Baltic Jaguar 53,473 5/14/10 Baltic Bear Limited Baltic Bear 177,717 5/14/10 Baltic Wolf Limited Baltic Wolf 177,752 10/14/10 Baltic Wind Limited Baltic Wind 34,408 8/4/10 Baltic Cove Limited Baltic Cove 34,403 8/23/10 Baltic Breeze Limited Baltic Breeze 34,386 10/12/10 Baltic Fox Limited Baltic Fox 31,883 9/6/13 Baltic Hare Limited Baltic Hare 31,887 9/5/13 Baltic Hornet Limited Baltic Hornet 63,574 10/29/14 Baltic Wasp Limited Baltic Wasp 63,389 1/2/15 Baltic Scorpion Limited Baltic Scorpion 63,462 8/6/15 Baltic Mantis Limited Baltic Mantis 63,470 10/9/15 (1) The delivery date for these vessels represents the date that the vessel was purchased from Baltic Trading. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of restricted cash and cash equivalents | March 31, December 31, 2020 2019 Cash and cash equivalents $ 134,338 $ 155,889 Restricted cash - current 14,855 6,045 Restricted cash - noncurrent 315 315 Cash, cash equivalents and restricted cash $ 149,508 $ 162,249 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
NET LOSS PER SHARE | |
Components of denominator for calculation of basic and diluted net (loss) earnings per share | For the Three Months Ended March 31, 2020 2019 Common shares outstanding, basic: Weighted-average common shares outstanding, basic 41,866,357 41,726,106 Common shares outstanding, diluted: Weighted-average common shares outstanding, basic 41,866,357 41,726,106 Dilutive effect of warrants — — Dilutive effect of stock options — — Dilutive effect of restricted stock awards — — Weighted-average common shares outstanding, diluted 41,866,357 41,726,106 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
DEBT | |
Schedule of components of Long-term debt | March 31, December 31, 2020 2019 Principal amount $ 488,834 $ 495,824 Less: Unamortized debt financing costs (12,143) (13,094) Less: Current portion (72,962) (69,747) Long-term debt, net $ 403,729 $ 412,983 March 31, 2020 December 31, 2019 Unamortized Unamortized Debt Issuance Debt Issuance Principal Cost Principal Cost $495 Million Credit Facility $ 390,314 $ 10,791 $ 395,724 $ 11,642 $108 Million Credit Facility 98,520 1,352 100,100 1,452 Total debt $ 488,834 $ 12,143 $ 495,824 $ 13,094 |
Schedule of effective interest rate and the range of interest rates on the debt | For the Three Months Ended March 31, 2020 2019 Effective Interest Rate 4.76 % 5.56 % Range of Interest Rates (excluding unused commitment fees) 3.45 % to 5.05 % 4.99 % to 5.76 % |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Schedule of fair values and carrying values of the Company's financial instruments | March 31, 2020 December 31, 2019 Carrying Carrying Value Fair Value Value Fair Value Cash and cash equivalents $ 134,338 $ 134,338 $ 155,889 $ 155,889 Restricted cash 15,170 15,170 6,360 6,360 Floating rate debt 488,834 488,834 495,824 495,824 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
Schedule of prepaid expenses and other current assets | March 31, December 31, 2020 2019 Vessel stores $ 566 $ 638 Capitalized contract costs 2,516 1,952 Prepaid items 2,871 2,870 Insurance receivable 2,217 2,039 Advance to agents 1,218 1,162 Other 1,477 1,388 Total prepaid expenses and other current assets $ 10,865 $ 10,049 |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
FIXED ASSETS | |
Schedule of fixed assets | March 31, December 31, 2020 2019 Fixed assets, at cost: Vessel equipment $ 6,543 $ 7,288 Furniture and fixtures 270 467 Leasehold improvements 539 100 Computer equipment 301 275 Total costs 7,653 8,130 Less: accumulated depreciation and amortization (1,704) (2,154) Total fixed assets, net $ 5,949 $ 5,976 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES. | |
Schedule of accounts payable and accrued expenses | March 31, December 31, 2020 2019 Accounts payable $ 21,850 $ 26,040 Accrued general and administrative expenses 1,593 4,105 Accrued vessel operating expenses 10,727 19,459 Total accounts payable and accrued expenses $ 34,170 $ 49,604 |
VOYAGE REVENUE (Tables)
VOYAGE REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
VOYAGE REVENUE | |
Schedule of voyage revenue | For the Three Months Ended March 31, 2020 2019 Lease revenue $ 19,151 $ 23,390 Spot market voyage revenue 79,185 70,074 Total voyage revenues $ 98,336 $ 93,464 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
LEASES | |
Schedule of balance sheet information related to operating leases | March 31, 2020 Operating Lease: Operating lease right-of-use asset $ 7,904 Current operating lease liabilities $ 1,698 Long-term operating lease liabilities 9,393 Total operating lease liabilities $ 11,091 Weighted average remaining lease term (years) 5.50 Weighted average discount rate 5.15 % |
Schedule of maturities of operating lease liabilities | March 31, 2020 Remainder of 2020 $ 1,672 2021 2,230 2022 2,230 2023 2,378 2024 2,453 Thereafter 1,839 Total lease payments 12,802 Less imputed interest (1,711) Present value of lease liabilities $ 11,091 |
Schedule of cash flow information related to operating leases | For the Three Months Ended March 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating lease $ 557 $ 557 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
2014 MIP Plan | Warrants | |
Stock Awards | |
Summary of warrant activity and warrants outstanding | The following table summarizes certain information about the warrants outstanding as of March 31, 2020: Warrants Outstanding and Exercisable, March 31, 2020 Weighted Weighted Average Average Remaining Number of Exercise Contractual Warrants Price Life 8,557,461 $ 281.82 0.35 |
2015 EIP Plan | Stock Options | |
Stock Awards | |
Schedule of nonvested stock amortization expense | For the Three Months Ended March 31, 2020 2019 General and administrative expenses $ 205 $ 181 |
Schedule of stock option activity | Weighted Weighted Number Average Average of Exercise Fair Options Price Value Outstanding at January 1, 2020 - Unvested 322,279 $ 9.41 4.72 Granted 344,568 7.06 2.01 Exercisable (119,923) 9.87 5.05 Exercised — — — Forfeited (3,378) 8.07 3.76 Outstanding at March 31, 2020 - Unvested 543,546 $ 7.83 $ 2.94 The following table summarizes certain information about the options outstanding as of March 31, 2020: Options Outstanding and Unvested, Options Outstanding and Exercisable, March 31, 2020 March 31, 2020 Weighted Weighted Weighted Average Weighted Average Weighted Average Exercise Price of Average Remaining Average Remaining Outstanding Number of Exercise Contractual Number of Exercise Contractual Options Options Price Life Options Price Life $ 8.86 543,546 $ 7.83 5.47 293,792 $ 10.78 3.76 |
2015 EIP Plan | Restricted Stock Units | |
Stock Awards | |
Schedule of nonvested stock amortization expense | For the Three Months Ended March 31, 2020 2019 General and administrative expenses $ 276 $ 271 |
Summary of nonvested restricted stock units | Weighted Number of Average Grant RSUs Date Price Outstanding at January 1, 2020 162,096 $ 9.26 Granted 177,911 7.00 Vested (50,332) 9.48 Forfeited (1,490) 8.39 Outstanding at March 31, 2020 288,185 $ 7.83 The total fair value of the RSUs that vested during the three months ended March 31, 2020 and 2019 was $351 and $107, respectively. The total fair value is calculated as the number of shares vested during the period multiplied by the fair value on the vesting date. The following table summarizes certain information of the RSUs unvested and vested as of March 31, 2020: Unvested RSUs Vested RSUs March 31, 2020 March 31, 2020 Weighted Weighted Average Weighted Average Remaining Average Number of Grant Date Contractual Number of Grant Date RSUs Price Life RSUs Price 288,185 $ 7.83 2.27 472,555 $ 11.26 |
GENERAL INFORMATION - Vessel De
GENERAL INFORMATION - Vessel Details (Details) | Mar. 31, 2020item |
Genco Augustus Limited | Genco Augustus | |
Vessels | |
Capacity of vessels | 180,151 |
Genco Tiberius Limited | Genco Tiberius | |
Vessels | |
Capacity of vessels | 175,874 |
Genco London Limited | Genco London | |
Vessels | |
Capacity of vessels | 177,833 |
Genco Titus Limited | Genco Titus | |
Vessels | |
Capacity of vessels | 177,729 |
Genco Warrior Limited | Genco Warrior | |
Vessels | |
Capacity of vessels | 55,435 |
Genco Predator Limited | Genco Predator | |
Vessels | |
Capacity of vessels | 55,407 |
Genco Hunter Limited | Genco Hunter | |
Vessels | |
Capacity of vessels | 58,729 |
Genco Constantine Limited | Genco Constantine | |
Vessels | |
Capacity of vessels | 180,183 |
Genco Hadrian Limited | Genco Hadrian | |
Vessels | |
Capacity of vessels | 169,025 |
Genco Commodus Limited | Genco Commodus | |
Vessels | |
Capacity of vessels | 169,098 |
Genco Maximus Limited | Genco Maximus | |
Vessels | |
Capacity of vessels | 169,025 |
Genco Claudius Limited | Genco Claudius | |
Vessels | |
Capacity of vessels | 169,001 |
Genco Bay Limited | Genco Bay | |
Vessels | |
Capacity of vessels | 34,296 |
Genco Ocean Limited | Genco Ocean | |
Vessels | |
Capacity of vessels | 34,409 |
Genco Avra Limited | Genco Avra | |
Vessels | |
Capacity of vessels | 34,391 |
Genco Mare Limited | Genco Mare | |
Vessels | |
Capacity of vessels | 34,428 |
Genco Spirit Limited | Genco Spirit | |
Vessels | |
Capacity of vessels | 34,432 |
Genco Aquitaine Limited | Genco Aquitaine | |
Vessels | |
Capacity of vessels | 57,981 |
Genco Ardennes Limited | Genco Ardennes | |
Vessels | |
Capacity of vessels | 58,018 |
Genco Auvergne Limited | Genco Auvergne | |
Vessels | |
Capacity of vessels | 58,020 |
Genco Bourgogne Limited | Genco Bourgogne | |
Vessels | |
Capacity of vessels | 58,018 |
Genco Brittany Limited | Genco Brittany | |
Vessels | |
Capacity of vessels | 58,018 |
Genco Languedoc Limited | Genco Languedoc | |
Vessels | |
Capacity of vessels | 58,018 |
Genco Loire Limited | Genco Loire | |
Vessels | |
Capacity of vessels | 53,430 |
Genco Lorraine Limited | Genco Lorraine | |
Vessels | |
Capacity of vessels | 53,417 |
Genco Normandy Limited | Genco Normandy | |
Vessels | |
Capacity of vessels | 53,596 |
Genco Picardy Limited | Genco Picardy | |
Vessels | |
Capacity of vessels | 55,257 |
Genco Provence Limited | Genco Provence | |
Vessels | |
Capacity of vessels | 55,317 |
Genco Pyrenees Limited | Genco Pyrenees | |
Vessels | |
Capacity of vessels | 58,018 |
Genco Rhone Limited | Genco Rhone | |
Vessels | |
Capacity of vessels | 58,018 |
Genco Weatherly Limited | Genco Weatherly | |
Vessels | |
Capacity of vessels | 61,556 |
Genco Columbia Limited | Genco Columbia | |
Vessels | |
Capacity of vessels | 60,294 |
Genco Endeavour Limited | Genco Endeavour | |
Vessels | |
Capacity of vessels | 181,060 |
Genco Resolute Limited | Genco Resolute | |
Vessels | |
Capacity of vessels | 181,060 |
Genco Defender Limited | Genco Defender | |
Vessels | |
Capacity of vessels | 180,021 |
Genco Liberty Limited | Genco Liberty | |
Vessels | |
Capacity of vessels | 180,032 |
Baltic Lion Limited | Baltic Lion | |
Vessels | |
Capacity of vessels | 179,185 |
Baltic Tiger Limited | Genco Tiger | |
Vessels | |
Capacity of vessels | 179,185 |
Baltic Leopard Limited | Baltic Leopard | |
Vessels | |
Capacity of vessels | 53,446 |
Baltic Panther Limited | Baltic Panther | |
Vessels | |
Capacity of vessels | 53,350 |
Baltic Cougar Limited | Baltic Cougar | |
Vessels | |
Capacity of vessels | 53,432 |
Baltic Jaguar Limited | Baltic Jaguar | |
Vessels | |
Capacity of vessels | 53,473 |
Baltic Bear Limited | Baltic Bear | |
Vessels | |
Capacity of vessels | 177,717 |
Baltic Wolf Limited | Baltic Wolf | |
Vessels | |
Capacity of vessels | 177,752 |
Baltic Wind Limited | Baltic Wind | |
Vessels | |
Capacity of vessels | 34,408 |
Baltic Cove Limited | Baltic Cove | |
Vessels | |
Capacity of vessels | 34,403 |
Baltic Breeze Limited | Baltic Breeze | |
Vessels | |
Capacity of vessels | 34,386 |
Baltic Fox Limited | Baltic Fox | |
Vessels | |
Capacity of vessels | 31,883 |
Baltic Hare Limited | Baltic Hare | |
Vessels | |
Capacity of vessels | 31,887 |
Baltic Hornet Limited | Baltic Hornet | |
Vessels | |
Capacity of vessels | 63,574 |
Baltic Wasp Limited | Baltic Wasp | |
Vessels | |
Capacity of vessels | 63,389 |
Baltic Scorpion Limited | Baltic Scorpion | |
Vessels | |
Capacity of vessels | 63,462 |
Baltic Mantis Limited | Baltic Mantis | |
Vessels | |
Capacity of vessels | 63,470 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segment (Details) | 3 Months Ended |
Mar. 31, 2020segment | |
Segment reporting | |
Number of reportable segments | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Restricted Cash | ||||
Cash and cash equivalents | $ 134,338 | $ 155,889 | ||
Restricted cash - current | 14,855 | 6,045 | ||
Restricted cash - noncurrent | 315 | 315 | ||
Cash, cash equivalents and restricted cash | $ 149,508 | $ 162,249 | $ 192,975 | $ 202,761 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Vessels, net and Deferred revenue (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)$ / item | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Vessels, net | |||
Estimated useful life | 25 years | ||
Estimated scrap value (in dollars per lightweight ton) | $ / item | 310 | ||
Depreciation and amortization | $ 17,574 | $ 18,076 | |
Accrual related to estimated customer claims | 303 | $ 577 | |
Vessels | |||
Vessels, net | |||
Depreciation and amortization | $ 15,833 | $ 16,488 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue and Voyage Expense (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)item | Mar. 31, 2019USD ($) | Dec. 31, 2019item | |
Voyage expense recognition | |||
Number of vessels in vessel pools | item | 0 | 0 | |
Net loss on purchase and sale of bunker fuel and net realizable value adjustments | $ 841 | $ 350 | |
Charter hire expenses | $ 3,075 | $ 2,419 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impairment (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)item | Mar. 31, 2019USD ($) | Feb. 24, 2020item | |
Impairment of long-lived assets | |||
Impairment of vessel assets | $ | $ 112,814 | $ 0 | |
Number impaired vessel assets | item | 4 | ||
Number of vessels to be disposed | item | 10 | ||
Genco Picardy, Genco Predator, Genco Provence and Genco Warrior | |||
Impairment of long-lived assets | |||
Impairment of vessel assets | $ | $ 27,046 | ||
Baltic Hare, Baltic Fox, Baltic Wind, Baltic Cove, Baltic Breeze, Genco Ocean, Genco Bay, Genco Avra, Genco Mare and Genco Spirit | |||
Impairment of long-lived assets | |||
Impairment of vessel assets | $ | $ 85,768 | ||
Baltic Wind, Baltic Breeze and Genco Bay | |||
Impairment of long-lived assets | |||
Number of vessels to be disposed | item | 3 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Sale of Vessels (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Gain on sale of vessels | ||
(Loss) gain on sale of vessels | $ (486) | $ 611 |
Genco Charger and Genco Thunder | ||
Gain on sale of vessels | ||
(Loss) gain on sale of vessels | $ (486) | |
Genco Vigour | ||
Gain on sale of vessels | ||
(Loss) gain on sale of vessels | $ 611 |
CASH FLOW INFORMATION - Non-cas
CASH FLOW INFORMATION - Non-cash (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Non-cash investing and financing activities | ||
Reclassification from vessels to vessels held for sale | $ 23,129 | |
Cash paid for interest | 6,051 | $ 7,760 |
Cash paid for estimated income taxes | 0 | 0 |
Accounts payable and accrued expenses | ||
Non-cash investing and financing activities | ||
Non-cash investing activities purchase of scrubbers | 2,950 | 9 |
Non-cash investing activities purchase of vessels and ballast water treatment systems, including deposits | 1,314 | 297 |
Non-cash investing activities purchase of other fixed assets | 548 | 124 |
Net proceeds from sale of vessels | 196 | 41 |
Non-cash financing activities cash dividends paid | $ 97 | |
Non-cash financing activities deferred financing fees | $ 20 |
CASH FLOW INFORMATION - Stock-B
CASH FLOW INFORMATION - Stock-Based Compensation (Details) - 2015 EIP Plan - USD ($) $ / shares in Units, $ in Thousands | Feb. 25, 2020 | Mar. 04, 2019 | Feb. 27, 2018 | Mar. 31, 2020 |
Restricted Stock Units | ||||
Non-cash investing and financing activities | ||||
Granted (in shares) | 173,749 | 106,079 | 177,911 | |
Aggregate fair value | $ 1,227 | $ 890 | ||
Vested (in shares) | 50,332 | |||
Stock Options | ||||
Non-cash investing and financing activities | ||||
Options to purchase (in shares) | 344,568 | 240,540 | 122,608 | 344,568 |
Exercise price | $ 7.06 | $ 8.39 | $ 7.06 | |
Aggregate fair value | $ 693 | $ 904 | $ 926 |
VESSEL ACQUISITIONS AND DISPO_2
VESSEL ACQUISITIONS AND DISPOSITIONS (Details) $ in Thousands | Mar. 05, 2020USD ($) | Feb. 24, 2020USD ($) | Dec. 11, 2019USD ($) | Nov. 15, 2019USD ($) | Nov. 05, 2019 | Oct. 21, 2019USD ($) | Oct. 21, 2019item | Oct. 10, 2019USD ($) | Jan. 28, 2019USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Feb. 28, 2019USD ($) | Aug. 14, 2018USD ($) |
VESSEL ACQUISITIONS | ||||||||||||||||
Restricted cash, current | $ 14,855 | $ 6,045 | ||||||||||||||
Secured Debt | $495 Million Credit Facility | ||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||
Maximum borrowing capacity | 495,000 | 495,000 | $ 495,000 | $ 495,000 | ||||||||||||
Collateral vessel replacement period | 180 days | |||||||||||||||
Secured Debt | $108 Million Credit Facility | ||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||
Maximum borrowing capacity | $ 108,000 | 108,000 | $ 108,000 | $ 108,000 | ||||||||||||
Baltic Breeze and Genco Bay | ||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||
Sale of assets | $ 7,900 | |||||||||||||||
Broker commission (as a percent) | 2.00% | |||||||||||||||
Baltic Wind | ||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||
Sale of assets | $ 7,750 | |||||||||||||||
Broker commission (as a percent) | 2.00% | |||||||||||||||
Genco Thunder | ||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||
Sale of assets | $ 10,400 | |||||||||||||||
Broker commission (as a percent) | 2.00% | |||||||||||||||
Genco Thunder | Secured Debt | $495 Million Credit Facility | ||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||
Restricted cash, current | $ 5,339 | |||||||||||||||
Period for which sales proceeds from vessels will remain as restricted cash | 180 days | |||||||||||||||
Genco Charger | ||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||
Sale of assets | $ 5,150 | |||||||||||||||
Broker commission (as a percent) | 1.00% | |||||||||||||||
Genco Charger | Secured Debt | $495 Million Credit Facility | ||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||
Restricted cash, current | $ 3,471 | |||||||||||||||
Period for which sales proceeds from vessels will remain as restricted cash | 180 days | |||||||||||||||
Genco Raptor | ||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||
Sale of assets | $ 10,200 | |||||||||||||||
Broker commission (as a percent) | 2.00% | |||||||||||||||
Genco Raptor | Secured Debt | $495 Million Credit Facility | ||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||
Restricted cash, current | $ 6,045 | $ 6,045 | ||||||||||||||
Period for which sales proceeds from vessels will remain as restricted cash | 180 days | |||||||||||||||
Genco Champion | ||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||
Sale of assets | $ 6,600 | |||||||||||||||
Broker commission (as a percent) | 3.00% | |||||||||||||||
Genco Challenger | ||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||
Sale of assets | $ 5,250 | |||||||||||||||
Broker commission (as a percent) | 2.00% | |||||||||||||||
Genco Champion and Genco Challenger | Secured Debt | $495 Million Credit Facility | ||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||
Number of vessels sold | item | 2 | |||||||||||||||
Vessel sale proceeds utilized as a loan repayment | $ 6,880 | |||||||||||||||
Collateral vessel replacement period | 180 days | |||||||||||||||
Genco Vigour | ||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||
Sale of assets | $ 6,550 | |||||||||||||||
Broker commission (as a percent) | 2.00% |
NET LOSS PER SHARE (Details)
NET LOSS PER SHARE (Details) - shares | Jul. 10, 2014 | Mar. 31, 2020 | Mar. 31, 2019 |
Common shares outstanding, basic: | |||
Weighted average common shares outstanding-basic | 41,866,357 | 41,726,106 | |
Common shares outstanding, diluted: | |||
Weighted average common shares outstanding-basic | 41,866,357 | 41,726,106 | |
Weighted-average common shares outstanding, diluted (in shares) | 41,866,357 | 41,726,106 | |
Restricted Stock and Restricted Stock Units | |||
Anti-dilutive shares (in shares) | 288,185 | 242,722 | |
Stock Options | |||
Anti-dilutive shares (in shares) | 837,338 | 496,418 | |
MIP Warrants | |||
Anti-dilutive shares (in shares) | 0 | 0 | |
Equity Warrants | |||
Anti-dilutive shares (in shares) | 3,936,761 | 3,936,761 | |
Equity Warrants | |||
Equity warrant term | 7 years | ||
Number of shares of new stock in which each warrant or right can be converted | 0.10 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
RELATED PARTY TRANSACTIONS | ||
Related party transactions | $ 0 | $ 0 |
DEBT - Components of Long-term
DEBT - Components of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Feb. 28, 2019 | Aug. 14, 2018 |
Line of Credit Facility | |||||
Principal amount | $ 488,834 | $ 495,824 | |||
Less: Unamortized debt financing costs | (12,143) | (13,094) | |||
Less: Current portion | (72,962) | (69,747) | |||
Long-term debt, net | 403,729 | 412,983 | |||
Secured Debt | $495 Million Credit Facility | |||||
Line of Credit Facility | |||||
Principal amount | 390,314 | 395,724 | |||
Less: Unamortized debt financing costs | (10,791) | (11,642) | |||
Maximum borrowing capacity | 495,000 | 495,000 | $ 495,000 | $ 495,000 | |
Secured Debt | $108 Million Credit Facility | |||||
Line of Credit Facility | |||||
Principal amount | 98,520 | 100,100 | |||
Less: Unamortized debt financing costs | (1,352) | (1,452) | |||
Maximum borrowing capacity | $ 108,000 | $ 108,000 | $ 108,000 | $ 108,000 |
DEBT - Expenses (Details)
DEBT - Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Line of Credit Facility | |||
Deferred financing costs, noncurrent | $ 12,143 | $ 13,094 | |
Amortization of deferred financing costs | 951 | $ 915 | |
Interest Expense | |||
Line of Credit Facility | |||
Amortization of deferred financing costs | $ 951 | $ 915 |
DEBT - $495 Million Credit Faci
DEBT - $495 Million Credit Facility (Details) - Secured Debt $ in Thousands | Mar. 12, 2020USD ($) | Nov. 15, 2019USD ($) | Nov. 05, 2019USD ($) | Sep. 23, 2019USD ($) | Aug. 28, 2019USD ($) | Apr. 15, 2019USD ($) | Feb. 28, 2019USD ($)item | Jun. 05, 2018USD ($) | May 31, 2018USD ($)item | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) |
$495 Million Credit Facility | ||||||||||||
Line of Credit Facility | ||||||||||||
Maximum borrowing capacity | $ 495,000 | $ 495,000 | $ 495,000 | $ 495,000 | ||||||||
Debt covenant to pay dividends or repurchase stock - Total cash and cash equivalents to total indebtedness (as a percent) | 18.75% | |||||||||||
Number of oldest vessels identified for sale for which debt will be paid down | item | 7 | |||||||||||
Remaining borrowing capacity | 0 | |||||||||||
Drawdowns during the period | 11,250 | |||||||||||
Repayment of secured debt | 16,660 | $ 15,000 | ||||||||||
Percentage limit of consolidated net income for which dividends can be paid | 50.00% | |||||||||||
Collateral vessel replacement period | 180 days | |||||||||||
Key covenant - Unrestricted cash and cash equivalents minimum | $ 30,000 | |||||||||||
Key covenant – Percentage of unrestricted cash to total indebtedness | 7.50% | |||||||||||
Minimum restricted cash required | $ 0 | |||||||||||
Minimum working capital required | $ 0 | |||||||||||
Maximum total indebtedness to total capitalization (as a ratio) | 70 | |||||||||||
Key covenant – Minimum time charters period | 24 months | |||||||||||
$495 Million Credit Facility | Genco Champion and Genco Challenger | ||||||||||||
Line of Credit Facility | ||||||||||||
Vessel sale proceeds utilized as a loan repayment | $ 6,880 | |||||||||||
Collateral vessel replacement period | 180 days | |||||||||||
$495 Million Credit Facility | Genco Cavalier | ||||||||||||
Line of Credit Facility | ||||||||||||
Vessel sale proceeds utilized as a loan repayment | $ 4,947 | |||||||||||
$460 Million Credit Facility | ||||||||||||
Line of Credit Facility | ||||||||||||
Term of facilities | 5 years | |||||||||||
Maximum borrowing capacity | $ 460,000 | |||||||||||
Number of oldest vessels identified for sale for which debt will be paid down | item | 7 | |||||||||||
Drawdowns during the period | $ 460,000 | |||||||||||
Repaid value of loan when certain debt terms are met | $ 0 | |||||||||||
Average age of collateral vessels for repayment of loan | 17 years | |||||||||||
$460 Million Credit Facility | Period after December 31, 2018 | ||||||||||||
Line of Credit Facility | ||||||||||||
Amortization payments per quarter | $ 15,000 | |||||||||||
$460 Million Credit Facility | Period upon final maturity on May 31, 2023 | ||||||||||||
Line of Credit Facility | ||||||||||||
Final payment amount | $ 190,000 | |||||||||||
$460 Million Credit Facility | Period After December 30, 2019 | ||||||||||||
Line of Credit Facility | ||||||||||||
Amount of periodic payment | 14,321 | |||||||||||
Final payment amount | $ 188,049 | |||||||||||
$460 Million Credit Facility | LIBOR | Through December 31, 2018 | ||||||||||||
Line of Credit Facility | ||||||||||||
Applicable margin over reference rate (as a percent) | 3.25% | |||||||||||
$35,000 Scrubber Tranche | ||||||||||||
Line of Credit Facility | ||||||||||||
Maximum borrowing capacity | $ 35,000 | $ 35,000 | ||||||||||
Drawdowns during the period | $ 11,250 | $ 12,200 | $ 9,300 | 32,750 | ||||||||
Number of Capesize vessels for which the scrubber installation will be financed | item | 17 | |||||||||||
$35,000 Scrubber Tranche | Period To March 30, 2020 | ||||||||||||
Line of Credit Facility | ||||||||||||
Minimum amount required per borrowing | $ 5,000 | |||||||||||
$35,000 Scrubber Tranche | Period After March 31, 2020 | ||||||||||||
Line of Credit Facility | ||||||||||||
Term of facilities | 4 years | |||||||||||
Amount of periodic payment | $ 2,500 | $ 2,339 | ||||||||||
$35,000 Scrubber Tranche | LIBOR | Through September 30, 2019 | ||||||||||||
Line of Credit Facility | ||||||||||||
Applicable margin over reference rate (as a percent) | 2.50% | |||||||||||
Minimum | $495 Million Credit Facility | ||||||||||||
Line of Credit Facility | ||||||||||||
Debt covenant to pay dividends or repurchase stock - Total cash and cash equivalents | $ 100,000 | |||||||||||
Collateral security maintenance test (as a percent) | 135.00% | |||||||||||
Minimum | $460 Million Credit Facility | LIBOR | Period after December 31, 2018 | ||||||||||||
Line of Credit Facility | ||||||||||||
Applicable margin over reference rate (as a percent) | 3.00% | |||||||||||
Minimum | $35,000 Scrubber Tranche | LIBOR | Period After September 30, 2019 | ||||||||||||
Line of Credit Facility | ||||||||||||
Applicable margin over reference rate (as a percent) | 2.25% | |||||||||||
Maximum | $495 Million Credit Facility | ||||||||||||
Line of Credit Facility | ||||||||||||
Collateral security maintenance test (as a percent) | 200.00% | |||||||||||
Maximum | $460 Million Credit Facility | LIBOR | Period after December 31, 2018 | ||||||||||||
Line of Credit Facility | ||||||||||||
Applicable margin over reference rate (as a percent) | 3.50% | |||||||||||
Maximum | $35,000 Scrubber Tranche | Period To March 30, 2020 | ||||||||||||
Line of Credit Facility | ||||||||||||
Percentage of scrubber costs to be financed | 90.00% | |||||||||||
Maximum | $35,000 Scrubber Tranche | LIBOR | Period After September 30, 2019 | ||||||||||||
Line of Credit Facility | ||||||||||||
Applicable margin over reference rate (as a percent) | 2.75% |
DEBT - $108 Million Credit Faci
DEBT - $108 Million Credit Facility (Details) - Secured Debt - $108 Million Credit Facility $ in Thousands | Nov. 05, 2019USD ($) | Aug. 14, 2018USD ($)item | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2019USD ($) |
Line of Credit Facility | ||||||
Term of facilities | 5 years | |||||
Maximum borrowing capacity | $ 108,000 | $ 108,000 | $ 108,000 | $ 108,000 | ||
Proceeds from credit facility | $ 108,000 | |||||
Number of vessels to serve as collateral under debt agreement | item | 6 | |||||
Maximum facility amount of fair market value of aggregate vessels at delivery (as a percent) | 45.00% | |||||
Remaining borrowing capacity | 0 | |||||
Repayment of secured debt | $ 1,580 | $ 1,580 | ||||
Repaid value of loan when certain debt terms are met | $ 0 | |||||
Average age of collateral vessels for repayment of loan | 20 years | |||||
Amount of repayment per quarter | $ 1,580 | |||||
Percentage limit of consolidated net income for which dividends can be paid | 50.00% | |||||
Debt covenant to pay dividends or repurchase stock - Total cash and cash equivalents to total indebtedness (as a percent) | 18.75% | |||||
Key covenant - Unrestricted cash and cash equivalents minimum | $ 30,000 | |||||
Key covenant – Percentage of unrestricted cash to total indebtedness | 7.50% | |||||
Minimum working capital required | $ 0 | |||||
Maximum total indebtedness to total capitalization (as a ratio) | 70 | |||||
LIBOR | Through September 30, 2019 | ||||||
Line of Credit Facility | ||||||
Applicable margin over reference rate (as a percent) | 2.50% | |||||
Agreement To Purchase Ultramax And Capesize Vessels | ||||||
Line of Credit Facility | ||||||
Number of vessels committed to be acquired under purchase agreement | item | 6 | |||||
Agreement to Purchase Capesize Drybulk Vessels | ||||||
Line of Credit Facility | ||||||
Number of vessels committed to be acquired under purchase agreement | item | 4 | |||||
Agreement To Purchase Ultramax Drybulk Vessels | ||||||
Line of Credit Facility | ||||||
Number of vessels committed to be acquired under purchase agreement | item | 2 | |||||
Minimum | ||||||
Line of Credit Facility | ||||||
Debt covenant to pay dividends or repurchase stock - Total cash and cash equivalents | $ 100,000 | |||||
Collateral security maintenance test (as a percent) | 200.00% | 135.00% | ||||
Minimum | LIBOR | Period After September 30, 2019 | ||||||
Line of Credit Facility | ||||||
Applicable margin over reference rate (as a percent) | 2.25% | |||||
Maximum | LIBOR | Period After September 30, 2019 | ||||||
Line of Credit Facility | ||||||
Applicable margin over reference rate (as a percent) | 2.75% |
DEBT - Interest Rates (Details)
DEBT - Interest Rates (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest rates on debt | ||
Effective Interest Rate (as a percent) | 4.76% | 5.56% |
Minimum | ||
Interest rates on debt | ||
Range of interest rates (excluding unused commitment fees) | 3.45% | 4.99% |
Maximum | ||
Interest rates on debt | ||
Range of interest rates (excluding unused commitment fees) | 5.05% | 5.76% |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - RECURRING (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Feb. 28, 2019 | Aug. 14, 2018 |
Fair value of financial instruments | |||||
Floating rate debt | $ 488,834 | $ 495,824 | |||
Secured Debt | $495 Million Credit Facility | |||||
Fair value of financial instruments | |||||
Floating rate debt | 390,314 | 395,724 | |||
Face amount of term loan facility | 495,000 | 495,000 | $ 495,000 | $ 495,000 | |
Secured Debt | $108 Million Credit Facility | |||||
Fair value of financial instruments | |||||
Floating rate debt | 98,520 | 100,100 | |||
Face amount of term loan facility | 108,000 | 108,000 | $ 108,000 | $ 108,000 | |
Carrying Value | |||||
Fair value of financial instruments | |||||
Cash and cash equivalents | 134,338 | 155,889 | |||
Restricted cash | 15,170 | 6,360 | |||
Floating rate debt | 488,834 | 495,824 | |||
Fair value | |||||
Fair value of financial instruments | |||||
Cash and cash equivalents | 134,338 | 155,889 | |||
Restricted cash | 15,170 | 6,360 | |||
Floating rate debt | $ 488,834 | $ 495,824 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - NONRECURRING (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)item | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Fair value of financial instruments | |||
Impairment of vessel assets | $ 112,814 | $ 0 | |
Fair Value, Measurements, Nonrecurring | |||
Fair value of financial instruments | |||
Number of vessels written down as part of impairment | item | 14 | ||
Impairment of vessel assets | 0 | ||
Impairment of operating lease right of use asset | $ 0 | $ 0 | |
Fair Value, Measurements, Nonrecurring | Level 3 | |||
Fair value of financial instruments | |||
Financial assets | 0 | $ 0 | |
Financial liabilities | $ 0 | $ 0 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||
Vessel stores | $ 566 | $ 638 |
Capitalized contract costs | 2,516 | 1,952 |
Prepaid items | 2,871 | 2,870 |
Insurance receivable | 2,217 | 2,039 |
Advance to agents | 1,218 | 1,162 |
Other | 1,477 | 1,388 |
Total prepaid expenses and other current assets | $ 10,865 | $ 10,049 |
FIXED ASSETS (Details)
FIXED ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
FIXED ASSETS | |||
Total costs | $ 7,653 | $ 8,130 | |
Less: accumulated depreciation and amortization | (1,704) | (2,154) | |
Total fixed assets, net | 5,949 | 5,976 | |
Depreciation and amortization | 17,574 | $ 18,076 | |
Detail of Fixed Assets, Excluding Vessels | |||
FIXED ASSETS | |||
Depreciation and amortization | 345 | $ 154 | |
Vessel equipment | |||
FIXED ASSETS | |||
Total costs | 6,543 | 7,288 | |
Furniture and fixtures | |||
FIXED ASSETS | |||
Total costs | 270 | 467 | |
Leasehold improvements | |||
FIXED ASSETS | |||
Total costs | 539 | 100 | |
Computer equipment | |||
FIXED ASSETS | |||
Total costs | $ 301 | $ 275 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES. | ||
Accounts payable | $ 21,850 | $ 26,040 |
Accrued general and administrative expenses | 1,593 | 4,105 |
Accrued vessel operating expenses | 10,727 | 19,459 |
Total accounts payable and accrued expenses | $ 34,170 | $ 49,604 |
VOYAGE REVENUE (Details)
VOYAGE REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income statement | ||
Lease revenue | $ 19,151 | $ 23,390 |
Voyage Revenue | 79,185 | 70,074 |
Total voyage revenues | 98,336 | 93,464 |
Voyage | ||
Income statement | ||
Total voyage revenues | $ 98,336 | $ 93,464 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | Jun. 14, 2019 | Apr. 04, 2011 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 17, 2019 |
Leases | ||||||
Impairment of right-of-use asset | $ 223 | |||||
Sublease income | $ 306 | $ 0 | ||||
Total lease cost | 483 | $ 452 | ||||
Period from July 26, 2019 to September 29, 2025 | ||||||
Leases | ||||||
Free base rental period of the sublease | 4 months 15 days | |||||
Period from December 10, 2019 to September 29, 2025 | ||||||
Leases | ||||||
Monthly base sublease income | $ 102 | |||||
Lease agreement entered into April 2011 | ||||||
Leases | ||||||
Lease term | 7 years | |||||
Obligation of sublessor towards the cost of alterations of office space | $ 472 | |||||
Lease agreement entered into April 2011 | Period from October 1, 2018 to April 30, 2023 | ||||||
Leases | ||||||
Monthly rental payment | 186 | |||||
Lease agreement entered into April 2011 | Period from May 1, 2023 to September 30, 2025 | ||||||
Leases | ||||||
Monthly rental payment | $ 204 | |||||
Sub Sublease Agreement | Period November 1, 2011 until May 31, 2015 | ||||||
Leases | ||||||
Monthly rental payment | 82 | |||||
Sub Sublease Agreement | Period after May 31, 2015 until April 30, 2018 | ||||||
Leases | ||||||
Monthly rental payment | $ 90 | |||||
Lease Agreement entered into January 2019 | Singapore | ||||||
Leases | ||||||
Lease term | 3 years |
LEASES - Balance Sheet Informat
LEASES - Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Operating lease | ||
Operating lease right-of-use assets | $ 7,904 | $ 8,241 |
Current operating lease liabilities | 1,698 | 1,677 |
Long-term operating lease liabilities | 9,393 | $ 9,826 |
Present value of lease liabilities | $ 11,091 | |
Weighted average remaining lease term (years) | 5 years 6 months | |
Weighted average discount rate | 5.15% |
LEASES - Operating Lease Liabil
LEASES - Operating Lease Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Lease Liabilities - ASC 842 | ||
2020 | $ 1,672 | |
2021 | 2,230 | |
2022 | 2,230 | |
2023 | 2,378 | |
2024 | 2,453 | |
Thereafter | 1,839 | |
Total lease payments | 12,802 | |
Less: Imputed interest | (1,711) | |
Present value of lease liabilities | 11,091 | |
Operating cash flow payments | $ 557 | $ 557 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Dec. 21, 2018item | Dec. 31, 2018USD ($)item | Dec. 31, 2019USD ($)item | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Feb. 28, 2019USD ($) |
Purchase commitment | ||||||
Vessel assets | $ 1,273,861 | $ 1,121,561 | ||||
Secured Debt | $495 Million Credit Facility | ||||||
Purchase commitment | ||||||
Maximum borrowing capacity | 495,000 | 495,000 | $ 495,000 | $ 495,000 | ||
Purchase Agreements for BWTS | ||||||
Purchase commitment | ||||||
Number of vessels to receive ballast water treatments systems | item | 42 | |||||
Vessel assets | $ 12,783 | 14,225 | ||||
Purchase Agreement of BWTS for Capesize Vessels | ||||||
Purchase commitment | ||||||
BWTS purchase price | $ 900 | |||||
Purchase Agreement of BWTS for Supramax Vessels | ||||||
Purchase commitment | ||||||
BWTS purchase price | 600 | |||||
Purchase Agreement of BWTS for Handysize Vessels | ||||||
Purchase commitment | ||||||
BWTS purchase price | $ 500 | |||||
Scrubber Installation Agreements | ||||||
Purchase commitment | ||||||
Number of Capesize vessels to receive scrubber installations | item | 17 | 16 | ||||
Vessel assets | $ 41,270 | $ 42,477 |
STOCK-BASED COMPENSATION - 2014
STOCK-BASED COMPENSATION - 2014 MIP (Details) - 2014 MIP Plan $ / shares in Units, $ in Thousands | Aug. 07, 2014USD ($)item$ / sharesshares | Jul. 09, 2014itemshares | Mar. 31, 2020USD ($)$ / sharesshares | Mar. 31, 2019USD ($) | Feb. 25, 2020$ / shares | Dec. 31, 2019shares |
Stock Awards | ||||||
Aggregate number of shares of common stock available for awards | shares | 966,806 | |||||
Percentage of Common Stock outstanding ( In percent) | 1.80% | |||||
Warrants | ||||||
Stock Awards | ||||||
Number of tranches | item | 3 | |||||
Number of tiers of MIP Warrants | item | 3 | |||||
Volatility rate ( as a percent) | 43.91% | |||||
Volatility rate term | 6 years | |||||
Risk-free interest rate ( as a percent) | 1.85% | |||||
Dividend rate ( as a percent) | 0.00% | |||||
Total fair value of outstanding awards upon emergence from bankruptcy | $ | $ 54,436 | |||||
Percentage of warrant vest for anniversaries of the grant date | 33.33% | |||||
Amortization expense | $ | $ 0 | $ 0 | ||||
Vesting period of awards | 3 years | |||||
Weighted Average Fair Value | ||||||
Number of warrants | shares | 8,557,461 | |||||
Exercisable (in dollars per share) | $ 281.82 | |||||
Weighted average remaining contractual life, exercisable | 4 months 6 days | |||||
Additional disclosures | ||||||
Warrants outstanding (in shares) | shares | 8,557,461 | 8,557,461 | ||||
Unrecognized compensation cost related to nonvested stock awards | ||||||
Unrecognized compensation cost | $ | $ 0 | |||||
Warrants | $240.89 Warrants | ||||||
Stock Awards | ||||||
Aggregate number of shares of common stock available for awards | shares | 238,066 | |||||
Exercise price per share, as adjusted by dividends | $ 240.89221 | |||||
Fair value of warrant (in dollars per share) | $ 7.22 | |||||
Warrants | $267.11 Warrants | ||||||
Stock Awards | ||||||
Aggregate number of shares of common stock available for awards | shares | 246,701 | |||||
Exercise price per share, as adjusted by dividends | 267.11051 | |||||
Fair value of warrant (in dollars per share) | $ 6.63 | |||||
Warrants | $317.87 Warrants | ||||||
Stock Awards | ||||||
Aggregate number of shares of common stock available for awards | shares | 370,979 | |||||
Exercise price per share, as adjusted by dividends | $ 317.87359 | |||||
Fair value of warrant (in dollars per share) | $ 5.63 |
STOCK-BASED COMPENSATION - 2015
STOCK-BASED COMPENSATION - 2015 EIP Stock Options and Other (Details) - 2015 EIP Plan - USD ($) $ / shares in Units, $ in Thousands | Feb. 25, 2020 | Nov. 05, 2019 | Mar. 04, 2019 | Feb. 27, 2018 | Mar. 23, 2017 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Mar. 22, 2017 | Jun. 26, 2015 |
Stock options | ||||||||||
Aggregate number of shares of common stock available for awards | 2,750,000 | 400,000 | 400,000 | |||||||
Nonemployee Directors | ||||||||||
Additional disclosures | ||||||||||
Maximum annual limit for grants (in shares) | 500,000 | |||||||||
Other Individuals | ||||||||||
Additional disclosures | ||||||||||
Maximum annual limit for grants (in shares) | 1,000,000 | |||||||||
Stock Options | ||||||||||
Stock options | ||||||||||
Vesting percentage of awards | 33.33% | 33.33% | 33.33% | |||||||
Vesting period | 3 years | 3 years | 3 years | |||||||
Unrecognized compensation cost | ||||||||||
Unamortized compensation cost | $ 1,072 | |||||||||
Future amortization of stock based compensation | ||||||||||
Remainder of 2020 | 582 | |||||||||
2021 | 367 | |||||||||
2022 | 111 | |||||||||
2023 | $ 12 | |||||||||
Number of Options | ||||||||||
Outstanding at beginning of period (in shares) | 322,279 | |||||||||
Granted (in shares) | 344,568 | 240,540 | 122,608 | 344,568 | ||||||
Exercisable (in shares) | (119,923) | |||||||||
Forfeited (in shares) | (3,378) | |||||||||
Outstanding at end of period (in shares) | 543,546 | |||||||||
Weighted Average Exercise Price | ||||||||||
Outstanding at beginning of period (in dollars per share) | $ 9.41 | |||||||||
Granted (in dollars per share) | $ 7.06 | $ 8.39 | 7.06 | |||||||
Exercisable (in dollars per share) | 9.87 | |||||||||
Forfeited (in dollars per share) | 8.07 | |||||||||
Outstanding at end of period (in dollars per share) | 7.83 | |||||||||
Weighted Average Fair Value | ||||||||||
Outstanding at beginning of period (in dollars per share) | 4.72 | |||||||||
Granted (in dollars per share) | $ 2.01 | $ 3.76 | $ 7.55 | 2.01 | ||||||
Exercisable (in dollars per share) | 5.05 | |||||||||
Forfeited (in dollars per share) | 3.76 | |||||||||
Outstanding at end of period (in dollars per share) | 2.94 | |||||||||
Weighted Average Exercise Price Of Outstanding Options | $ 8.86 | |||||||||
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 5 months 19 days | |||||||||
Options Exercisable, Number of options | 293,792 | |||||||||
Options Exercisable, Weighted Average Exercise Price | $ 10.78 | |||||||||
Options Exercisable, Weighted Average Remaining Contractual Life | 3 years 9 months 4 days | |||||||||
Aggregate fair value | $ 693 | $ 904 | $ 926 | |||||||
Stock options outstanding - nonvested and exercisable | 837,338 | 496,148 | ||||||||
Assumptions and Methodology | ||||||||||
Weighted average volatility rate (as a percent) | 53.91% | 55.23% | 71.94% | |||||||
Risk-free interest rate ( as a percent) | 1.41% | 2.49% | 2.53% | |||||||
Dividend rate ( as a percent) | 7.13% | 0.00% | 0.00% | |||||||
Expected life (in years) | 4 years | 4 years | 4 years | |||||||
Stock Options | General and Administrative Expense | ||||||||||
Stock options | ||||||||||
Amortization expense | $ 205 | $ 181 | ||||||||
Stock Options | Exercise Price - $13.365 | ||||||||||
Weighted Average Exercise Price | ||||||||||
Granted (in dollars per share) | $ 13.365 | |||||||||
Stock Options | Exercise Price - $8.065 | ||||||||||
Weighted Average Exercise Price | ||||||||||
Granted (in dollars per share) | 8.065 | |||||||||
Stock Options | John C. Wobensmith | ||||||||||
Stock options | ||||||||||
Vesting percentage of awards | 33.33% | |||||||||
Vesting period | 3 years | |||||||||
Number of Options | ||||||||||
Granted (in shares) | 133,000 | |||||||||
Weighted Average Exercise Price | ||||||||||
Granted (in dollars per share) | $ 10.805 | |||||||||
Weighted Average Fair Value | ||||||||||
Granted (in dollars per share) | $ 6.41 | |||||||||
Aggregate fair value | $ 853 | |||||||||
Assumptions and Methodology | ||||||||||
Weighted average volatility rate (as a percent) | 79.80% | |||||||||
Risk-free interest rate ( as a percent) | 1.68% | |||||||||
Dividend rate ( as a percent) | 0.00% | |||||||||
Expected life (in years) | 3 years 9 months 11 days |
STOCK-BASED COMPENSATION - 20_2
STOCK-BASED COMPENSATION - 2015 EIP Restricted Stock Units (Details) - 2015 EIP Plan - Restricted Stock Units - USD ($) $ / shares in Units, $ in Thousands | Feb. 25, 2020 | Mar. 04, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Stock Awards | |||||
Number of common shares outstanding in respect of RSUs | 373,588 | 326,247 | |||
Number of Shares | |||||
Balance at the beginning of the period (in shares) | 162,096 | ||||
Granted (in shares) | 173,749 | 106,079 | 177,911 | ||
Vested (in shares) | (50,332) | ||||
Forfeited (in shares) | (1,490) | ||||
Balance at the end of the period (in shares) | 288,185 | ||||
Weighted Average Fair Value | |||||
Balance at the beginning of the period (in dollars per share) | $ 9.26 | ||||
Granted (in dollars per share) | 7 | ||||
Vested (in dollars per share) | 9.48 | ||||
Forfeited (in dollars per share) | 8.39 | ||||
Balance at the end of the period (in dollars per share) | $ 7.83 | ||||
Weighted-average remaining contractual life | 2 years 3 months 7 days | ||||
Additional disclosures | |||||
Total fair value of shares vested | $ 351 | $ 107 | |||
Unrecognized compensation cost related to nonvested stock awards | |||||
Unrecognized compensation cost | $ 1,557 | ||||
Weighted-average period for recognition of unrecognized compensation cost | 2 years 3 months 7 days | ||||
General and Administrative Expense | |||||
Additional disclosures | |||||
Recognized nonvested stock amortization expense | $ 276 | $ 271 | |||
Vested RSUs | |||||
Number of Shares | |||||
Number of shares vested | 472,555 | ||||
Weighted Average Fair Value | |||||
Vested (in dollars per share) | $ 11.26 | ||||
Other Individuals | |||||
Stock Awards | |||||
Vesting period of awards | 3 years |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | May 06, 2020 | Mar. 31, 2020 |
Subsequent Events | ||
Dividends declared per share of common stock | $ 0.175 | |
Aggregate amount of dividend | $ 7,363 | |
Subsequent Event | ||
Subsequent Events | ||
Dividends declared per share of common stock | $ 0.02 | |
Aggregate amount of dividend | $ 800 |