Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 04, 2020 | |
Cover page. | ||
Entity Registrant Name | GENCO SHIPPING & TRADING LIMITED | |
Entity Central Index Key | 0001326200 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-33393 | |
Document Period End Date | Sep. 30, 2020 | |
Entity Incorporation, State or Country Code | 1T | |
Entity Tax Identification Number | 98-0439758 | |
Entity Address, Address Line One | 299 Park Avenue | |
Entity Address, Address Line Two | 12th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10171 | |
City Area Code | 646 | |
Local Phone Number | 443-8550 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | GNK | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 41,801,753 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 136,233 | $ 155,889 |
Restricted cash | 24,227 | 6,045 |
Due from charterers, net of a reserve of $456 and $1,064, respectively | 10,906 | 13,701 |
Prepaid expenses and other current assets | 9,014 | 10,049 |
Inventories | 21,159 | 27,208 |
Vessels held for sale | 20,889 | 10,303 |
Total current assets | 222,428 | 223,195 |
Noncurrent assets: | ||
Vessels, net of accumulated depreciation of $247,761 and $288,373, respectively | 1,062,888 | 1,273,861 |
Deferred drydock, net of accumulated amortization of $8,067 and $11,862 respectively | 17,157 | 17,304 |
Fixed assets, net of accumulated depreciation and amortization of $2,406 and $2,154, respectively | 7,534 | 5,976 |
Operating lease right-of-use assets | 7,225 | 8,241 |
Restricted cash | 315 | 315 |
Total noncurrent assets | 1,095,119 | 1,305,697 |
Total assets | 1,317,547 | 1,528,892 |
Current liabilities: | ||
Accounts payable and accrued expenses | 22,973 | 49,604 |
Current portion of long-term debt | 80,642 | 69,747 |
Deferred revenue | 8,318 | 6,627 |
Current operating lease liabilities | 1,742 | 1,677 |
Total current liabilities: | 113,675 | 127,655 |
Noncurrent liabilities: | ||
Long-term operating lease liabilities | 8,511 | 9,826 |
Long-term debt, net of deferred financing costs of $10,650 and $13,094, respectively | 384,141 | 412,983 |
Total noncurrent liabilities | 392,652 | 422,809 |
Total liabilities | 506,327 | 550,464 |
Commitments and contingencies (Note 12) | ||
Equity: | ||
Common stock, par value $0.01; 500,000,000 shares authorized; 41,801,753 and 41,754,413 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 418 | 417 |
Additional paid-in capital | 1,713,711 | 1,721,268 |
Accumulated deficit | (902,909) | (743,257) |
Total equity | 811,220 | 978,428 |
Total liabilities and equity | $ 1,317,547 | $ 1,528,892 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Due from charterers, reserve | $ 456 | $ 1,064 |
Noncurrent assets: | ||
Vessels, accumulated depreciation | 247,761 | 288,373 |
Deferred drydock, accumulated amortization | 8,067 | 11,862 |
Fixed assets, accumulated depreciation and amortization | 2,406 | 2,154 |
Deferred financing costs, noncurrent | $ 10,650 | $ 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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues: | ||||
Revenues | $ 87,524 | $ 103,776 | $ 260,066 | $ 280,790 |
Operating expenses: | ||||
Voyage expenses | 33,487 | 42,967 | 123,550 | 127,789 |
Vessel operating expenses | 23,460 | 24,711 | 66,332 | 72,260 |
Charter hire expenses | 1,020 | 5,475 | 5,527 | 12,743 |
General and administrative expenses (inclusive of nonvested stock amortization expense of $534, $575, $1,491 and $1,596, respectively) | 5,115 | 6,144 | 16,353 | 18,253 |
Technical management fees | 1,739 | 1,885 | 5,316 | 5,710 |
Depreciation and amortization | 16,115 | 18,184 | 49,619 | 54,532 |
Impairment of vessel assets | 21,896 | 12,182 | 134,710 | 26,078 |
Loss (gain) on sale of vessels | 358 | 844 | (611) | |
Total operating expenses | 103,190 | 111,548 | 402,251 | 316,754 |
Operating loss | (15,666) | (7,772) | (142,185) | (35,964) |
Other (expense) income: | ||||
Other (expense) income | (436) | 86 | (900) | 523 |
Interest income | 101 | 892 | 948 | 3,292 |
Interest expense | (5,097) | (7,797) | (17,515) | (24,496) |
Impairment of right-of-use asset | (223) | |||
Other expense | (5,432) | (6,819) | (17,467) | (20,904) |
Net loss | $ (21,098) | $ (14,591) | $ (159,652) | $ (56,868) |
Net loss per share-basic | $ (0.50) | $ (0.35) | $ (3.81) | $ (1.36) |
Net loss per share-diluted | $ (0.50) | $ (0.35) | $ (3.81) | $ (1.36) |
Weighted average common shares outstanding-basic | 41,928,682 | 41,749,200 | 41,898,756 | 41,739,287 |
Weighted average common shares outstanding-diluted | 41,928,682 | 41,749,200 | 41,898,756 | 41,739,287 |
Voyage | ||||
Revenues: | ||||
Revenues | $ 87,524 | $ 103,776 | $ 260,066 | $ 280,790 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Consolidated Statements of Operations | ||||
Nonvested stock amortization expenses | $ 534 | $ 575 | $ 1,491 | $ 1,596 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Consolidated Statements of Comprehensive Loss | ||||
Net loss | $ (21,098) | $ (14,591) | $ (159,652) | $ (56,868) |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive loss | $ (21,098) | $ (14,591) | $ (159,652) | $ (56,868) |
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 |
Increase (Decrease) in Shareholders' Equity | ||||
Net loss | (34,476) | (34,476) | ||
Nonvested stock amortization | 569 | 569 | ||
Balance at the end at Jun. 30, 2019 | 416 | 1,741,184 | (729,549) | 1,012,051 |
Increase (Decrease) in Shareholders' Equity | ||||
Net loss | (14,591) | (14,591) | ||
Nonvested stock amortization | 575 | 575 | ||
Balance at the end at Sep. 30, 2019 | 416 | 1,741,759 | (744,140) | 998,035 |
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 | (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 |
Increase (Decrease) in Shareholders' Equity | ||||
Net loss | (18,204) | (18,204) | ||
Cash dividends declared | (842) | (842) | ||
Nonvested stock amortization | 476 | 476 | ||
Balance at the end at Jun. 30, 2020 | 418 | 1,714,019 | (881,811) | 832,626 |
Increase (Decrease) in Shareholders' Equity | ||||
Net loss | (21,098) | (21,098) | ||
Cash dividends declared | (842) | (842) | ||
Nonvested stock amortization | 534 | 534 | ||
Balance at the end at Sep. 30, 2020 | $ 418 | $ 1,713,711 | $ (902,909) | $ 811,220 |
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 (in shares) | 12,477 | |
Issuance of shares of RSUs, net (in shares) | 47,341 | |
Forfeited (in shares) | 1,490 | |
Dividends declared per share | $ 0.175 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (159,652) | $ (56,868) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 49,619 | 54,532 |
Amortization of deferred financing costs | 2,906 | 2,828 |
Noncash operating lease expense | 1,016 | 911 |
Amortization of nonvested stock compensation expense | 1,491 | 1,596 |
Impairment of right-of-use asset | 223 | |
Impairment of vessel assets | 134,710 | 26,078 |
Loss (gain) on sale of vessels | 844 | (611) |
Insurance proceeds for protection and indemnity claims | 330 | 413 |
Insurance proceeds for loss of hire claims | 78 | |
Change in assets and liabilities: | ||
Decrease in due from charterers | 2,795 | 1,915 |
Decrease (increase) in prepaid expenses and other current assets | 143 | (655) |
Decrease in inventories | 6,049 | 6,566 |
(Decrease) increase in accounts payable and accrued expenses | (17,956) | 5,061 |
Increase (decrease) in deferred revenue | 1,691 | (79) |
Decrease in operating lease liabilities | (1,250) | (1,187) |
Deferred drydock costs incurred | (6,799) | (11,965) |
Net cash provided by operating activities | 16,015 | 28,758 |
Cash flows from investing activities: | ||
Purchase of vessels and ballast water treatment systems, including deposits | (3,379) | (10,392) |
Purchase of scrubbers (capitalized in Vessels) | (10,948) | (24,736) |
Purchase of other fixed assets | (3,684) | (3,590) |
Net proceeds from sale of vessels | 29,854 | 6,309 |
Insurance proceeds for hull and machinery claims | 484 | 612 |
Net cash provided by (used in) investing activities | 12,327 | (31,797) |
Cash flows from financing activities: | ||
Payment of common stock issuance costs | (105) | |
Cash dividends paid | (8,963) | |
Payment of deferred financing costs | (462) | (611) |
Net cash used in financing activities | (29,816) | (33,531) |
Net decrease in cash, cash equivalents and restricted cash | (1,474) | (36,570) |
Cash, cash equivalents and restricted cash at beginning of period | 162,249 | 202,761 |
Cash, cash equivalents and restricted cash at end of period | 160,775 | 166,191 |
Secured Debt | $133 Million Credit Facility | ||
Cash flows from financing activities: | ||
Proceeds from credit facility | 24,000 | |
Repayment of secured debt | (5,660) | (4,740) |
Secured Debt | $495 Million Credit Facility | ||
Cash flows from financing activities: | ||
Proceeds from credit facility | 11,250 | 21,500 |
Repayment of secured debt | $ (49,981) | $ (49,575) |
GENERAL INFORMATION
GENERAL INFORMATION | 9 Months Ended |
Sep. 30, 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 and operates in one business segment. At September 30, 2020, the Company’s fleet consists of 51 drybulk vessels, including 17 Capesize drybulk carriers, six Ultramax drybulk carriers, 20 Supramax drybulk carriers and 8 Handysize drybulk carriers, with an aggregate carrying capacity of approximately 4,768,900 dwt and an average age of approximately 10.3 years. 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 any future 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 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. Restricted cash September 30, December 31, 2020 2019 Cash and cash equivalents $ 136,233 $ 155,889 Restricted cash - current 24,227 6,045 Restricted cash - noncurrent 315 315 Cash, cash equivalents and restricted cash $ 160,775 $ 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 20, 2020, the Company entered into an agreement to sell the Genco Bay. Additionally, on September 17, 2020 and September 25, 2020, the Company entered into agreements to sell the Genco Normandy and Baltic Jaguar, respectively. The relevant vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheet as of September 30, 2020. The Genco Bay was sold on October 1, 2020, the Baltic Jaguar was sold on October 16, 2020 and the Genco Normandy is expected to be sold during the fourth quarter 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 Sheet 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. 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 10 — 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 (gain) loss of during the nine months ended September 30, 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. Impairment of vessel assets During the three months ended September 30, 2020 and 2019, the Company recorded $21,896 and $12,182 , respectively, related to the impairment of vessel assets in accordance with ASC 360 — “Property, Plant and Equipment” (“ASC 360”). Additionally, during the nine months ended September 30, 2020 and 2019, the Company recorded On November 3, 2020, the Company entered into an agreement to sell the Baltic Panther, a 2009-built Supramax vessel, to a third party for $7,510 less a 3.0% commission payable to a third party. As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of September 30, 2020, the vessel value for the Baltic Panther was adjusted to its net sales price of as of September 30, 2020. This resulted in an impairment loss of On October 16, 2020, the Company entered into an agreement to sell the Genco Loire, a 2009-built Supramax vessel, to a third party for $7,650 less a 2.0% commission payable to a third party. As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of September 30, 2020, the vessel value for the Genco Loire was adjusted to its net sales price of as of September 30, 2020. This resulted in an impairment loss of On September 30, 2020, the Company determined that the expected estimated future undiscounted cash flows for three of its Supramax vessels, the Genco Lorraine, the Baltic Cougar and the Baltic Leopard, did not exceed the net book value of these vessels as of September 30, 2020. The Company adjusted the carrying value of these vessels to their respective fair market values as of September 30, 2020. This resulted in an impairment loss of On September 25, 2020, the Company entered into an agreement to sell the Baltic Jaguar, a 2009-built Supramax vessel, to a third party for $7,300 less a 3.0% commission payable to a third party. Therefore, the vessel value for the Baltic Jaguar was adjusted to its net sales price of as of September 30, 2020. This resulted in an impairment loss of On September 17, 2020, the Company entered in an agreement to sell the Genco Normandy, a 2007-built Supramax vessel, to a third party for $5,850 less a 2.0% commission payable to a third party. Therefore, the vessel value for the Genco Normandy was adjusted to its net sales price of as of September 30, 2020. This resulted in an impairment loss of At March 31, 2020, the Company determined that the expected estimated future undiscounted cash flows for four of its 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 during the nine months ended September 30, 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 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 during the nine months ended September 30, 2020. Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the vessel sales. On November 4, 2019, the Company entered into an agreement to sell the Genco Raptor, a 2007-built Panamax vessel, to a third party for $10,200 less a 2.0% commission payable to a third party. As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of September 30, 2019, the vessel value for the Genco Raptor was adjusted to its net sales price of $9,996 as of September 30, 2019. This resulted in an impairment loss of $5,812 during the three and nine months ended September 30, 2019. 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. Therefore, the vessel value for the Genco Thunder was adjusted to its net sales price of $10,192 as of September 30, 2019. This resulted in an impairment loss of $5,749 during the three and nine months ended September 30, 2019. 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. Therefore, the vessel value for the Genco Champion was adjusted to its net sales price of $6,402 as of September 30, 2019. This resulted in an impairment loss of $621 during the three and nine months ended September 30, 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. As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of June 30, 2019, the vessel value for the Genco Challenger was adjusted to its net sales price of $5,145 as of June 30, 2019. This resulted in an impairment loss of $4,401 during the nine months ended September 30, 2019. At June 30, 2019, the Company determined that the expected estimated future undiscounted cash flows for the Genco Champion, a 2006-built Handysize vessel, and the Genco Charger, a 2005-built Handysize vessel, did not exceed the net book value of these vessels as of June 30, 2019. As such, the Company adjusted the value of these vessels to their respective fair market values as of June 30, 2019. This resulted in an impairment loss of $9,496 during the nine months ended September 30, 2019. Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale of the aforementioned vessels. Loss (gain) on sale of vessels During the three and nine months ended September 30, 2020, the Company recorded a net loss of $358 and $844 , respectively, related to the sale of vessels. The net loss of recorded during the three months ended September 30, 2020 related primarily to the sale of the Baltic Wind and Baltic Breeze. The net loss of recorded during the nine months ended September 30, 2020 related primarily to the sale of the Genco Charger, Genco Thunder, Baltic Wind and Baltic Breeze. During the nine months ended September 30, 2019, the Company recorded a net gain of related to the sale of vessels. The net gain of recorded during the nine months ended September 30, 2019 related primarily to the sale of the Genco Vigour. There were 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 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 | 9 Months Ended |
Sep. 30, 2020 | |
CASH FLOW INFORMATION | |
CASH FLOW INFORMATION | 3 - CASH FLOW INFORMATION For the nine months ended September 30, 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 $25 for the Purchase of scrubbers, $1,241 for the Purchase of vessels and ballast water treatment systems, including deposits, $451 for the Purchase of other fixed assets and $123 for the Net proceeds from sale of vessels. For the nine months ended September 30, 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 For the nine months ended September 30, 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 $2,478 for the Purchase of vessels and ballast water treatment systems, including deposits, $7,420 for the Purchase of scrubbers and $427 for the Purchase of other fixed assets. During the nine months ended September 30, 2020 and 2019, cash paid for interest was $14,577 and $21,927 , respectively. During the nine months ended September 30, 2020 and 2019, there was no cash paid for income taxes. During the nine months ended September 30, 2020, the Company made a reclassification of $20,889 from Vessels, net of accumulated depreciation to Vessels held for sale as the Company entered into agreements to sell the Genco Bay, Baltic Jaguar and Genco Normandy prior to September 30, 2020. Refer to Note 4 — Vessel Acquisitions and Dispositions. On July 15, 2020, the Company issued 42,642 restricted stock units to certain members of the Board of Directors. The aggregate fair value of these restricted stock units was 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 May 15, 2019, the Company issued 29,580 restricted stock units to certain members of the Board of Directors. The aggregate fair value of these restricted stock units was $255. 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 13 — Stock-Based Compensation for further information regarding the aforementioned grants. Supplemental Condensed Consolidated Cash Flow information related to leases is as follows: For the Nine Months Ended September 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating lease $ 1,672 $ 1,672 |
VESSEL ACQUISITIONS AND DISPOSI
VESSEL ACQUISITIONS AND DISPOSITIONS | 9 Months Ended |
Sep. 30, 2020 | |
VESSEL ACQUISITIONS AND DISPOSITIONS | |
VESSEL ACQUISITIONS AND DISPOSITIONS | 4 - VESSEL ACQUISITIONS AND DISPOSITIONS Vessel Dispositions On September 25, 2020, the Company entered into an agreement to sell the Baltic Jaguar, a 2009-built Supramax vessel, to a third party for $7,300 less a 3.0% commission payable to a third party. The sale was completed on October 16, 2020. The vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheet as of September 30, 2020. On September 17, 2020, the Company entered in an agreement to sell the Genco Normandy, a 2007-built Supramax vessel, to a third party for $5,850 less a 2.0% commission payable to a third party. The sale is expected to be completed during the fourth quarter of 2020. The vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheet as of September 30, 2020. On March 20, 2020, the Company entered into agreements to sell the Baltic Breeze and Genco Bay, both 2010 broker commission payable to a third party. The sale of the Baltic Breeze was completed on July 31, 2020 . The vessel assets for the Genco Bay have been classified as held for sale in the Condensed Consolidated Balance Sheet as of September 30, 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 was completed on July 7, 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 Baltic Breeze, Baltic Wind, Genco Thunder, Genco Charger and Genco Raptor served as collateral under the $495 Million Credit Facility; therefore $4,797, $4,575, $5,339, $3,471 and $6,045, respectively, of the net proceeds received from the sale will remain classified as restricted cash for 360 days following the respective sale dates, which has been reflected as restricted cash in the Condensed Consolidated Balance Sheets as of September 30, 2020 . Refer to Note 7 $495 Million Credit Facility. As of December 31, 2019 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 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 The sale was completed on October 10, 2019. The Genco Champion and Genco Challenger served as collateral under the $495 Million Credit Facility; therefore, 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 the “Impairment of vessel assets” section in Note 2 — Summary of Significant Accounting Policies for discussion of impairment expense recorded during the three and nine months ended September 30, 2020 and 2019 for the aforementioned vessels. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 9 Months Ended |
Sep. 30, 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 13 — 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 stock options excluded from the computation of diluted net loss per share during the three and nine months ended September 30, 2020 because they were anti-dilutive. There were stock options excluded from the computation of diluted net loss per share during the three and nine months ended September 30, 2019 because they were anti-dilutive (refer to Note 13 — 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 13 — Stock-Based Compensation) if the impact is dilutive under the treasury stock method. The equity warrants have a one tenth of a share of the Company’s common stock. There were equity warrants excluded from the computation of diluted net loss per share during the three and nine months ended September 30, 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 For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Common shares outstanding, basic: Weighted-average common shares outstanding, basic 41,928,682 41,749,200 41,898,756 41,739,287 Common shares outstanding, diluted: Weighted-average common shares outstanding, basic 41,928,682 41,749,200 41,898,756 41,739,287 Dilutive effect of warrants — — — — Dilutive effect of stock options — — — — Dilutive effect of restricted stock awards — — — — Weighted-average common shares outstanding, diluted 41,928,682 41,749,200 41,898,756 41,739,287 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2020 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 6 - RELATED PARTY TRANSACTIONS During the three and nine months ended September 30, 2020 and 2019, the Company did not identify any related party transactions. |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2020 | |
DEBT | |
DEBT | 7 – DEBT Long-term debt, net consists of the following: September 30, December 31, 2020 2019 Principal amount $ 475,433 $ 495,824 Less: Unamortized debt financing costs (10,650) (13,094) Less: Current portion (80,642) (69,747) Long-term debt, net $ 384,141 $ 412,983 September 30, 2020 December 31, 2019 Unamortized Unamortized Debt Issuance Debt Issuance Principal Cost Principal Cost $495 Million Credit Facility $ 356,993 $ 9,081 $ 395,724 $ 11,642 $133 Million Credit Facility 118,440 1,569 100,100 1,452 Total debt $ 475,433 $ 10,650 $ 495,824 $ 13,094 As of September 30, 2020 and December 31, 2019, $10,650 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. $495 Million Credit Facility On May 31, 2018, the Company entered into the $460 Million Credit Facility, a five-year senior secured credit facility for an aggregate amount of up to $460,000 which was used to (i) refinance all of the Company’s prior credit facilities into one facility and (ii) pay down the debt on seven of the Company’s oldest vessels, which have been sold. On February 28, 2019, the Company entered into an amendment to the $460 Million Credit Facility, which provided an additional tranche of 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 (as so amended, the “$495 Million Credit Facility”). On June 5, 2020, the Company entered into an amendment to the $495 Million Credit Facility to extend the period that 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 from 180 days to 360 days. 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. , and this tranche is considered fully drawn. Scheduled quarterly repayments under this tranche are . As of September 30, 2020, there was no availability under the $495 Million Credit Facility. Total debt repayments of were made during the three months ended September 30, 2020 and 2019 under the $495 Million Credit Facility, respectively. Total debt repayments of As of September 30, 2020, the Company was in compliance with all of the financial covenants under the $495 Million Credit Facility. $133 Million Credit Facility On August 14, 2018, the Company entered into the $108 Million Credit Facility, a five-year senior secured credit facility that was used to finance a portion of the purchase price of six vessels, which also serve as collateral under the facility, which were delivered to the Company during the three months ended September 30, 2018. On June 11, 2020, the Company entered into an amendment and restatement agreement to the $108 Million Credit Facility which provided for a revolving credit facility of up to $25,000 (the “Revolver”) for general corporate and working capital purposes (as so amended, the “$133 Million Credit Facility”). The key terms associated with the Revolver are as follows: ● The final maturity date of the Revolver is August 14, 2023. ● Borrowings under the Revolver may be incurred pursuant to multiple drawings on or prior to July 1, 2023 in minimum amounts of $1,000 . ● Borrowings under the Revolver will bear interest at LIBOR plus 3.00% ● The Revolver is subject to consecutive quarterly commitment reductions commencing on the last day of the fiscal quarter ending September 30, 2020 in an amount equal to approximately $1.9 million each quarter. ● Borrowings under the Revolver are subject to a limit of 60% for the ratio of outstanding total term and revolver loans to the aggregate appraised value of collateral vessels under the $133 Million Credit Facility. The collateral and financial covenants otherwise remain substantially the same as they were under the $108 Million Credit Facility. On June 15, 2020, the Company drew down $24,000 under the Revolver of the $133 Million Credit Facility. As of September 30, 2020, there was no availability under the $133 Million Credit Facility. Total debt repayments of were made during the three months ended September 30, 2020 and 2019 under the $133 Million Credit Facility, respectively. Total debt repayments of were made during the nine months ended September 30, 2020 and 2019 under the $133 Million Credit Facility, respectively. As of September 30, 2020, the Company was in compliance with all of the financial covenants under the $133 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 For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Effective Interest Rate 3.23 % 5.31 % 3.89 % 5.44 % Range of Interest Rates (excluding unused commitment fees) 2.65 % to 3.56 % 4.54 % to 5.49 % 2.65 % to 5.05 % 4.54 % to 5.76 % |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 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 as of September 30, 2020 and December 31, 2019 which are required to be disclosed at fair value, but not recorded at fair value, are noted below. September 30, 2020 December 31, 2019 Carrying Carrying Value Fair Value Value Fair Value Cash and cash equivalents $ 136,233 $ 136,233 $ 155,889 $ 155,889 Restricted cash 24,542 24,542 6,360 6,360 Principal amount of floating rate debt 475,433 475,433 495,824 495,824 The carrying value of the borrowings under the $495 Million Credit Facility and the $133 Million Credit Facility as of September 30, 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. The carrying amounts of the Company’s other financial instruments as of September 30, 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 and nine months ended September 30, 2020, the vessel assets for of the Company’s vessels, respectively, were written down as part of the impairment recorded during the three and nine months ended September 30, 2020, respectively. During the three and nine months ended September 30, 2019, the vessel assets for of the Company’s vessels, respectively, were written down as part of the impairment recorded during the three and nine months ended September 30, 2019, respectively. The vessels held for sale as of September 30, 2020 and December 31, 2019 were written down as part of the impairment recorded during the three and nine months ended September 30, 2020 and 2019, respectively. Refer to the “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 and nine months ended September 30, 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 and nine months ended September 30, 2020, there was no impairment of the operating lease right-of-use assets. During the three months ended September 30, 2019, there was impairment of the operating lease right-of-use assets. The Company did not have any Level 3 financial assets or liabilities as of September 30, 2020 and December 31, 2019. |
ACCOUNTS PAYABLE AND ACCRUED EX
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 9 Months Ended |
Sep. 30, 2020 | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES. | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 9 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consist of the following: September 30, December 31, 2020 2019 Accounts payable $ 9,863 $ 26,040 Accrued general and administrative expenses 3,232 4,105 Accrued vessel operating expenses 9,878 19,459 Total accounts payable and accrued expenses $ 22,973 $ 49,604 |
VOYAGE REVENUES
VOYAGE REVENUES | 9 Months Ended |
Sep. 30, 2020 | |
VOYAGE REVENUES | |
VOYAGE REVENUE | 1 0 – VOYAGE REVENUES 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 September 30, 2020 and 2019, the Company earned respectively. For the nine months ended September 30, 2020 and 2019, the Company earned 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 — Revenue from Contracts with Customers. 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 — Leases (“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. 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 For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Lease revenue $ 20,795 $ 29,619 $ 51,929 $ 78,861 Spot market voyage revenue 66,729 74,157 208,137 201,929 Total voyage revenues $ 87,524 $ 103,776 $ 260,066 $ 280,790 |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2020 | |
LEASES | |
LEASES | 11 - LEASES 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 was of sublease income recorded during the three and nine months ended September 30, 2020, respectively. There was sublease income recorded during the three and nine months ended September 30, 2019 as a result of the free rental period. Sublease income is recorded net with the total operating lease costs in General and administrative expenses in the Condensed Consolidated Statements of Operation. The Company charters in third-party vessels and the Company is the lessee in these agreements under ASC 842. 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 and nine months ended September 30, 2020 and 2019, all charter-in agreements for third-party vessels were less than twelve months and considered short-term leases. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 12 – 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. Prior to any adjustments for vessel impairment and vessel sales, the Company recorded cumulatively $16,446 and $12,783 in Vessel assets in the Condensed Consolidated Balance Sheets as of September 30, 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 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 in Vessel assets in the Condensed Consolidated Balance Sheets as of September 30, 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 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2020 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 13 - STOCK-BASED COMPENSATION 2014 Management Incentive Plan As of September 30, 2020 and December 31, 2019, a total of 0 and 8,557,461 of warrants were outstanding, respectively, under the Genco Shipping & Trading Limited 2014 Management Incentive Plan (the “MIP”). The MIP warrants expired on August 7, 2020. The MIP Warrants were issued in three tranches for 238,066, 246,701 and 370,979 shares and had exercise prices, as adjusted for dividends declared during the fourth quarter of 2019 and the first quarter of 2020, of $240.89221, $267.11051 and $317.87359 per whole share, respectively. For the three and nine months ended September 30, 2020 and 2019, there was no amortization expense of the fair value of these warrants. As of September 30, 2020, there was 2015 Equity Incentive Plan Stock Options 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 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 in the aggregate. The assumptions used in the Cox-Ross-Rubinstein option pricing formula are as follows: volatility of (determined using the simplified method as outlined in SAB Topic 14 due to lack of historical exercise data). For the three and nine months ended September 30, 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 For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 General and administrative expenses $ 195 $ 232 $ 592 $ 642 Amortization of the unamortized stock-based compensation balance of $684 as of September 30, 2020 is expected to be expensed $194, $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 nine months ended September 30, 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 September 30, 2020 - Unvested 543,546 $ 7.83 $ 2.94 The following table summarizes certain information about the options outstanding as of September 30, 2020: Options Outstanding and Unvested, Options Outstanding and Exercisable, September 30, 2020 September 30, 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 4.97 293,792 $ 10.78 3.26 As of September 30, 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 September 30, 2020 and December 31, 2019, 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. three anniversaries of the determined vesting date. The table below summarizes the Company’s unvested RSUs for the nine months ended September 30, 2020: Weighted Number of Average Grant RSUs Date Price Outstanding at January 1, 2020 162,096 $ 9.26 Granted 221,466 6.80 Vested (83,356) 9.08 Forfeited (1,490) 8.39 Outstanding at September 30, 2020 298,716 $ 7.49 The total fair value of the RSUs that vested during the nine months ended September 30, 2020 and 2019 was $548 and $230 , 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 September 30, 2020: Unvested RSUs Vested RSUs September 30, 2020 September 30, 2020 Weighted Weighted Average Weighted Average Remaining Average Number of Grant Date Contractual Number of Grant Date RSUs Price Life RSUs Price 298,716 $ 7.49 1.84 505,578 $ 11.08 The Company is amortizing these grants over the applicable vesting periods, net of anticipated forfeitures. As of September 30, 2020, unrecognized compensation cost of For the three and nine months ended September 30, 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 For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 General and administrative expenses $ 339 $ 343 $ 899 $ 954 |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 9 Months Ended |
Sep. 30, 2020 | |
LEGAL PROCEEDINGS | |
LEGAL PROCEEDINGS | 14 - 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 | 9 Months Ended |
Sep. 30, 2020 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 15 – SUBSEQUENT EVENTS On November 4, 2020, the Company announced a regular quarterly dividend of $0.02 per share to be paid on or about November 25, 2020 to shareholders of record as of November 17, 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. On November 3, 2020, the Company entered into an agreement to sell the Baltic Panther, a 2009-built Supramax vessel, to a third party for $7,510 less a 3.0% commission payable to a third party. The sale of the vessel is expected to be completed during the fourth quarter of 2020. On October 16, 2020, the Company entered into an agreement to sell the Genco Loire, a 2009-built Supramax vessel, to a third party for $7,650 less a 2.0% commission payable to a third party. The sale of the vessel is expected to be completed during the fourth quarter of 2020. On October 16, 2020, the Company completed the sale of the Baltic Jaguar, a 2009-built Supramax vessel, to a third party for $7,300 less a 3.0% broker commission payable to a third party. Additionally, on October 1, 2020, the Company completed the sale of the Genco Bay, a 2010-built Handysize vessel, to a third party for $7,900 less a 2.0% broker commission payable to a third party. The vessel assets for the Baltic Jaguar and Genco Bay have been classified as held for sale in the Condensed Consolidated Balance Sheet as of September 30, 2020. Refer also to Note 4 — Vessel Acquisitions and Dispositions. The Company expects to record a net loss on the sale of the Baltic Jaguar during the fourth quarter of 2020 of between approximately $200 and $400 . The Company expects to record a net loss on the sale of the Genco Bay during the fourth quarter of 2020 between These vessels served as collateral under the $495 Million Credit Facility; therefore, $4,054 and $4,798 of the net proceeds received from the sale of the Baltic Jaguar and Genco Bay, respectively, will remain classified as restricted cash for 360 days following the sale date. That amount 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 360 day period, the Company will be required to use the proceeds as a loan prepayment. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 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. |
Restricted cash | Restricted cash September 30, December 31, 2020 2019 Cash and cash equivalents $ 136,233 $ 155,889 Restricted cash - current 24,227 6,045 Restricted cash - noncurrent 315 315 Cash, cash equivalents and restricted cash $ 160,775 $ 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 20, 2020, the Company entered into an agreement to sell the Genco Bay. Additionally, on September 17, 2020 and September 25, 2020, the Company entered into agreements to sell the Genco Normandy and Baltic Jaguar, respectively. The relevant vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheet as of September 30, 2020. The Genco Bay was sold on October 1, 2020, the Baltic Jaguar was sold on October 16, 2020 and the Genco Normandy is expected to be sold during the fourth quarter 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 Sheet 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. |
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 10 — 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 (gain) loss of during the nine months ended September 30, 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. |
Impairment of vessel assets | Impairment of vessel assets During the three months ended September 30, 2020 and 2019, the Company recorded $21,896 and $12,182 , respectively, related to the impairment of vessel assets in accordance with ASC 360 — “Property, Plant and Equipment” (“ASC 360”). Additionally, during the nine months ended September 30, 2020 and 2019, the Company recorded On November 3, 2020, the Company entered into an agreement to sell the Baltic Panther, a 2009-built Supramax vessel, to a third party for $7,510 less a 3.0% commission payable to a third party. As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of September 30, 2020, the vessel value for the Baltic Panther was adjusted to its net sales price of as of September 30, 2020. This resulted in an impairment loss of On October 16, 2020, the Company entered into an agreement to sell the Genco Loire, a 2009-built Supramax vessel, to a third party for $7,650 less a 2.0% commission payable to a third party. As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of September 30, 2020, the vessel value for the Genco Loire was adjusted to its net sales price of as of September 30, 2020. This resulted in an impairment loss of On September 30, 2020, the Company determined that the expected estimated future undiscounted cash flows for three of its Supramax vessels, the Genco Lorraine, the Baltic Cougar and the Baltic Leopard, did not exceed the net book value of these vessels as of September 30, 2020. The Company adjusted the carrying value of these vessels to their respective fair market values as of September 30, 2020. This resulted in an impairment loss of On September 25, 2020, the Company entered into an agreement to sell the Baltic Jaguar, a 2009-built Supramax vessel, to a third party for $7,300 less a 3.0% commission payable to a third party. Therefore, the vessel value for the Baltic Jaguar was adjusted to its net sales price of as of September 30, 2020. This resulted in an impairment loss of On September 17, 2020, the Company entered in an agreement to sell the Genco Normandy, a 2007-built Supramax vessel, to a third party for $5,850 less a 2.0% commission payable to a third party. Therefore, the vessel value for the Genco Normandy was adjusted to its net sales price of as of September 30, 2020. This resulted in an impairment loss of At March 31, 2020, the Company determined that the expected estimated future undiscounted cash flows for four of its 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 during the nine months ended September 30, 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 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 during the nine months ended September 30, 2020. Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the vessel sales. On November 4, 2019, the Company entered into an agreement to sell the Genco Raptor, a 2007-built Panamax vessel, to a third party for $10,200 less a 2.0% commission payable to a third party. As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of September 30, 2019, the vessel value for the Genco Raptor was adjusted to its net sales price of $9,996 as of September 30, 2019. This resulted in an impairment loss of $5,812 during the three and nine months ended September 30, 2019. 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. Therefore, the vessel value for the Genco Thunder was adjusted to its net sales price of $10,192 as of September 30, 2019. This resulted in an impairment loss of $5,749 during the three and nine months ended September 30, 2019. 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. Therefore, the vessel value for the Genco Champion was adjusted to its net sales price of $6,402 as of September 30, 2019. This resulted in an impairment loss of $621 during the three and nine months ended September 30, 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. As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of June 30, 2019, the vessel value for the Genco Challenger was adjusted to its net sales price of $5,145 as of June 30, 2019. This resulted in an impairment loss of $4,401 during the nine months ended September 30, 2019. At June 30, 2019, the Company determined that the expected estimated future undiscounted cash flows for the Genco Champion, a 2006-built Handysize vessel, and the Genco Charger, a 2005-built Handysize vessel, did not exceed the net book value of these vessels as of June 30, 2019. As such, the Company adjusted the value of these vessels to their respective fair market values as of June 30, 2019. This resulted in an impairment loss of $9,496 during the nine months ended September 30, 2019. Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale of the aforementioned vessels. |
Loss (gain) on sale of vessels | Loss (gain) on sale of vessels During the three and nine months ended September 30, 2020, the Company recorded a net loss of $358 and $844 , respectively, related to the sale of vessels. The net loss of recorded during the three months ended September 30, 2020 related primarily to the sale of the Baltic Wind and Baltic Breeze. The net loss of recorded during the nine months ended September 30, 2020 related primarily to the sale of the Genco Charger, Genco Thunder, Baltic Wind and Baltic Breeze. During the nine months ended September 30, 2019, the Company recorded a net gain of related to the sale of vessels. The net gain of recorded during the nine months ended September 30, 2019 related primarily to the sale of the Genco Vigour. There were |
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 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. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of restricted cash and cash equivalents | September 30, December 31, 2020 2019 Cash and cash equivalents $ 136,233 $ 155,889 Restricted cash - current 24,227 6,045 Restricted cash - noncurrent 315 315 Cash, cash equivalents and restricted cash $ 160,775 $ 162,249 |
CASH FLOW INFORMATION (Tables)
CASH FLOW INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
CASH FLOW INFORMATION | |
Schedule of cash flow information related to operating leases | For the Nine Months Ended September 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating lease $ 1,672 $ 1,672 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
NET LOSS PER SHARE | |
Components of denominator for calculation of basic and diluted net (loss) earnings per share | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Common shares outstanding, basic: Weighted-average common shares outstanding, basic 41,928,682 41,749,200 41,898,756 41,739,287 Common shares outstanding, diluted: Weighted-average common shares outstanding, basic 41,928,682 41,749,200 41,898,756 41,739,287 Dilutive effect of warrants — — — — Dilutive effect of stock options — — — — Dilutive effect of restricted stock awards — — — — Weighted-average common shares outstanding, diluted 41,928,682 41,749,200 41,898,756 41,739,287 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
DEBT | |
Schedule of components of Long-term debt | September 30, December 31, 2020 2019 Principal amount $ 475,433 $ 495,824 Less: Unamortized debt financing costs (10,650) (13,094) Less: Current portion (80,642) (69,747) Long-term debt, net $ 384,141 $ 412,983 September 30, 2020 December 31, 2019 Unamortized Unamortized Debt Issuance Debt Issuance Principal Cost Principal Cost $495 Million Credit Facility $ 356,993 $ 9,081 $ 395,724 $ 11,642 $133 Million Credit Facility 118,440 1,569 100,100 1,452 Total debt $ 475,433 $ 10,650 $ 495,824 $ 13,094 |
Schedule of effective interest rate and the range of interest rates on the debt | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Effective Interest Rate 3.23 % 5.31 % 3.89 % 5.44 % Range of Interest Rates (excluding unused commitment fees) 2.65 % to 3.56 % 4.54 % to 5.49 % 2.65 % to 5.05 % 4.54 % to 5.76 % |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Schedule of fair values and carrying values of the Company's financial instruments | September 30, 2020 December 31, 2019 Carrying Carrying Value Fair Value Value Fair Value Cash and cash equivalents $ 136,233 $ 136,233 $ 155,889 $ 155,889 Restricted cash 24,542 24,542 6,360 6,360 Principal amount of floating rate debt 475,433 475,433 495,824 495,824 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES. | |
Schedule of accounts payable and accrued expenses | September 30, December 31, 2020 2019 Accounts payable $ 9,863 $ 26,040 Accrued general and administrative expenses 3,232 4,105 Accrued vessel operating expenses 9,878 19,459 Total accounts payable and accrued expenses $ 22,973 $ 49,604 |
VOYAGE REVENUES (Tables)
VOYAGE REVENUES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
VOYAGE REVENUES | |
Schedule of voyage revenue | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Lease revenue $ 20,795 $ 29,619 $ 51,929 $ 78,861 Spot market voyage revenue 66,729 74,157 208,137 201,929 Total voyage revenues $ 87,524 $ 103,776 $ 260,066 $ 280,790 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) - 2015 EIP Plan | 9 Months Ended |
Sep. 30, 2020 | |
Stock Options | |
Stock Awards | |
Schedule of nonvested stock amortization expense | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 General and administrative expenses $ 195 $ 232 $ 592 $ 642 |
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 September 30, 2020 - Unvested 543,546 $ 7.83 $ 2.94 The following table summarizes certain information about the options outstanding as of September 30, 2020: Options Outstanding and Unvested, Options Outstanding and Exercisable, September 30, 2020 September 30, 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 4.97 293,792 $ 10.78 3.26 |
Restricted Stock Units | |
Stock Awards | |
Schedule of nonvested stock amortization expense | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 General and administrative expenses $ 339 $ 343 $ 899 $ 954 |
Summary of nonvested restricted stock units | Weighted Number of Average Grant RSUs Date Price Outstanding at January 1, 2020 162,096 $ 9.26 Granted 221,466 6.80 Vested (83,356) 9.08 Forfeited (1,490) 8.39 Outstanding at September 30, 2020 298,716 $ 7.49 The total fair value of the RSUs that vested during the nine months ended September 30, 2020 and 2019 was $548 and $230 , 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 September 30, 2020: Unvested RSUs Vested RSUs September 30, 2020 September 30, 2020 Weighted Weighted Average Weighted Average Remaining Average Number of Grant Date Contractual Number of Grant Date RSUs Price Life RSUs Price 298,716 $ 7.49 1.84 505,578 $ 11.08 |
GENERAL INFORMATION (Details)
GENERAL INFORMATION (Details) | 9 Months Ended |
Sep. 30, 2020itemsegmentt | |
Segment reporting | |
Number of reportable segments | segment | 1 |
Drybulk Vessels | |
Segment reporting | |
Number of vessels in fleet | 51 |
Capacity of vessels | t | 4,768,900 |
Average age of vessels | 10 years 3 months 18 days |
Capesize Drybulk Carriers | |
Segment reporting | |
Number of vessels in fleet | 17 |
Ultramax Drybulk Carriers | |
Segment reporting | |
Number of vessels in fleet | 6 |
Supramax Drybulk Carriers | |
Segment reporting | |
Number of vessels in fleet | 20 |
Handysize Drybulk Carriers | |
Segment reporting | |
Number of vessels in fleet | 8 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Restricted Cash | ||||
Cash and cash equivalents | $ 136,233 | $ 155,889 | ||
Restricted cash - current | 24,227 | 6,045 | ||
Restricted cash - noncurrent | 315 | 315 | ||
Cash, cash equivalents and restricted cash | $ 160,775 | $ 162,249 | $ 166,191 | $ 202,761 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Voyage Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Voyage expense recognition | ||||
Net loss (gain) on purchase and sale of bunker fuel and net realizable value adjustments | $ (392) | $ 497 | $ 1,407 | $ 734 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impairment (Details) $ in Thousands | Nov. 03, 2020USD ($) | Oct. 16, 2020USD ($) | Sep. 25, 2020USD ($) | Sep. 17, 2020USD ($) | Mar. 05, 2020USD ($) | Dec. 11, 2019USD ($) | Nov. 04, 2019USD ($) | Oct. 21, 2019USD ($) | Oct. 10, 2019USD ($) | Sep. 25, 2019USD ($) | Sep. 20, 2019USD ($) | Aug. 02, 2019USD ($) | Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($) | Mar. 31, 2020item | Feb. 24, 2020item | Jun. 30, 2019USD ($) |
Impairment of long-lived assets | |||||||||||||||||||
Net proceeds from sale of vessels | $ 29,854 | $ 6,309 | |||||||||||||||||
Impairment of vessel assets | $ 21,896 | $ 12,182 | $ 134,710 | 26,078 | |||||||||||||||
Genco Lorraine, Baltic Cougar and Baltic Leopard | |||||||||||||||||||
Impairment of long-lived assets | |||||||||||||||||||
Number impaired vessel assets | item | 3 | 3 | |||||||||||||||||
Impairment of vessel assets | $ 7,963 | $ 7,963 | |||||||||||||||||
Genco Picardy, Genco Predator, Genco Provence and Genco Warrior | |||||||||||||||||||
Impairment of long-lived assets | |||||||||||||||||||
Number impaired vessel assets | item | 4 | ||||||||||||||||||
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 | |||||||||||||||||||
Number of vessels to be disposed | item | 10 | ||||||||||||||||||
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 | ||||||||||||||||||
Genco Challenger | |||||||||||||||||||
Impairment of long-lived assets | |||||||||||||||||||
Sale of assets | $ 5,250 | $ 5,250 | |||||||||||||||||
Broker commission (as a percent) | 2.00% | 2.00% | |||||||||||||||||
Adjusted net sales price of vessel | $ 5,145 | ||||||||||||||||||
Impairment of vessel assets | 4,401 | ||||||||||||||||||
Genco Champion and Genco Charger | |||||||||||||||||||
Impairment of long-lived assets | |||||||||||||||||||
Impairment of vessel assets | 9,496 | ||||||||||||||||||
Baltic Panther | |||||||||||||||||||
Impairment of long-lived assets | |||||||||||||||||||
Adjusted net sales price of vessel | 7,285 | 7,285 | |||||||||||||||||
Impairment of vessel assets | 3,711 | 3,711 | |||||||||||||||||
Genco Loire | |||||||||||||||||||
Impairment of long-lived assets | |||||||||||||||||||
Adjusted net sales price of vessel | 7,497 | 7,497 | |||||||||||||||||
Impairment of vessel assets | 3,407 | 3,407 | |||||||||||||||||
Baltic Jaguar | |||||||||||||||||||
Impairment of long-lived assets | |||||||||||||||||||
Sale of assets | $ 7,300 | ||||||||||||||||||
Broker commission (as a percent) | 3.00% | ||||||||||||||||||
Adjusted net sales price of vessel | 7,081 | 7,081 | |||||||||||||||||
Impairment of vessel assets | 4,138 | 4,138 | |||||||||||||||||
Genco Normandy | |||||||||||||||||||
Impairment of long-lived assets | |||||||||||||||||||
Sale of assets | $ 5,850 | ||||||||||||||||||
Broker commission (as a percent) | 2.00% | ||||||||||||||||||
Adjusted net sales price of vessel | 5,733 | 5,733 | |||||||||||||||||
Impairment of vessel assets | $ 2,677 | $ 2,677 | |||||||||||||||||
Genco Raptor | |||||||||||||||||||
Impairment of long-lived assets | |||||||||||||||||||
Sale of assets | $ 10,200 | $ 10,200 | |||||||||||||||||
Broker commission (as a percent) | 2.00% | 2.00% | |||||||||||||||||
Adjusted net sales price of vessel | 9,996 | 9,996 | |||||||||||||||||
Impairment of vessel assets | 5,812 | 5,812 | |||||||||||||||||
Genco Thunder | |||||||||||||||||||
Impairment of long-lived assets | |||||||||||||||||||
Sale of assets | $ 10,400 | $ 10,400 | |||||||||||||||||
Broker commission (as a percent) | 2.00% | 2.00% | |||||||||||||||||
Adjusted net sales price of vessel | 10,192 | 10,192 | |||||||||||||||||
Impairment of vessel assets | 5,749 | 5,749 | |||||||||||||||||
Genco Champion | |||||||||||||||||||
Impairment of long-lived assets | |||||||||||||||||||
Sale of assets | $ 6,600 | $ 6,600 | |||||||||||||||||
Broker commission (as a percent) | 3.00% | 3.00% | |||||||||||||||||
Adjusted net sales price of vessel | 6,402 | 6,402 | |||||||||||||||||
Impairment of vessel assets | $ 621 | $ 621 | |||||||||||||||||
Subsequent Event | Baltic Panther | |||||||||||||||||||
Impairment of long-lived assets | |||||||||||||||||||
Sale of assets | $ 7,510 | ||||||||||||||||||
Broker commission (as a percent) | 3.00% | ||||||||||||||||||
Subsequent Event | Genco Loire | |||||||||||||||||||
Impairment of long-lived assets | |||||||||||||||||||
Sale of assets | $ 7,650 | ||||||||||||||||||
Broker commission (as a percent) | 2.00% | ||||||||||||||||||
Subsequent Event | Baltic Jaguar | |||||||||||||||||||
Impairment of long-lived assets | |||||||||||||||||||
Sale of assets | $ 7,300 | ||||||||||||||||||
Broker commission (as a percent) | 3.00% |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Sale of Vessels (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019item | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Gain on sale of vessels | ||||
(Loss) gain on sale of vessels | $ (358) | $ (844) | $ 611 | |
Number of vessels sold | item | 0 | |||
Baltic Wind and Baltic Breeze | ||||
Gain on sale of vessels | ||||
(Loss) gain on sale of vessels | $ (358) | |||
Genco Charger and Genco Thunder | ||||
Gain on sale of vessels | ||||
(Loss) gain on sale of vessels | $ (844) | |||
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 | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Non-cash investing and financing activities | ||
Cash paid for interest | $ 14,577 | $ 21,927 |
Cash paid for estimated income taxes | 0 | 0 |
Reclassification from vessels to vessels held for sale | 20,889 | |
Accounts payable and accrued expenses | ||
Non-cash investing and financing activities | ||
Purchase of scrubbers | 25 | 7,420 |
Purchases of vessels and ballast water treatment systems | 1,241 | 2,478 |
Purchase of other fixed assets | 451 | $ 427 |
Non-cash financing activities net proceeds from sale of assets | 123 | |
Non-cash financing activities cash dividends paid | $ 108 |
CASH FLOW INFORMATION - Stock-B
CASH FLOW INFORMATION - Stock-Based Compensation (Details) - 2015 EIP Plan - USD ($) $ / shares in Units, $ in Thousands | Jul. 15, 2020 | Feb. 25, 2020 | May 15, 2019 | Mar. 04, 2019 | Sep. 30, 2020 |
Restricted Stock Units | |||||
Non-cash investing and financing activities | |||||
Granted (in shares) | 42,642 | 173,749 | 29,580 | 106,079 | 221,466 |
Aggregate fair value | $ 255 | $ 1,227 | $ 255 | $ 890 | |
Stock Options | |||||
Non-cash investing and financing activities | |||||
Options to purchase (in shares) | 344,568 | 240,540 | 344,568 | ||
Exercise price | $ 7.06 | $ 8.39 | $ 7.06 | ||
Aggregate fair value | $ 693 | $ 904 |
CASH FLOW INFORMATION - Lease p
CASH FLOW INFORMATION - Lease payments (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flow payments | $ 1,672 | $ 1,672 |
VESSEL ACQUISITIONS AND DISPO_2
VESSEL ACQUISITIONS AND DISPOSITIONS (Details) $ in Thousands | Oct. 16, 2020USD ($) | Oct. 01, 2020USD ($) | Sep. 25, 2020USD ($) | Sep. 17, 2020USD ($) | Jul. 31, 2020USD ($) | Jul. 07, 2020USD ($) | Jun. 05, 2020 | Jun. 04, 2020 | Mar. 05, 2020USD ($) | Feb. 24, 2020USD ($) | Dec. 11, 2019USD ($) | Nov. 15, 2019USD ($) | Nov. 04, 2019USD ($) | Oct. 21, 2019USD ($) | Oct. 21, 2019item | Oct. 10, 2019USD ($) | Sep. 25, 2019USD ($) | Sep. 20, 2019USD ($) | Aug. 02, 2019USD ($) | Jan. 28, 2019USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2019item | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
VESSEL ACQUISITIONS | ||||||||||||||||||||||||
Number of vessels sold | item | 0 | |||||||||||||||||||||||
Restricted cash, current | $ 24,227 | $ 6,045 | ||||||||||||||||||||||
Secured Debt | $495 Million Credit Facility | ||||||||||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||||||||||
Collateral vessel replacement period | 360 days | 180 days | ||||||||||||||||||||||
Baltic Jaguar | ||||||||||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||||||||||
Sale of assets | $ 7,300 | |||||||||||||||||||||||
Broker commission (as a percent) | 3.00% | |||||||||||||||||||||||
Baltic Jaguar | Subsequent Event | ||||||||||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||||||||||
Sale of assets | $ 7,300 | |||||||||||||||||||||||
Broker commission (as a percent) | 3.00% | |||||||||||||||||||||||
Baltic Jaguar | Secured Debt | Subsequent Event | $495 Million Credit Facility | ||||||||||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||||||||||
Restricted cash, current | $ 4,054 | |||||||||||||||||||||||
Period for which sales proceeds from vessels will remain as restricted cash | 360 days | |||||||||||||||||||||||
Genco Normandy | ||||||||||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||||||||||
Sale of assets | $ 5,850 | |||||||||||||||||||||||
Broker commission (as a percent) | 2.00% | |||||||||||||||||||||||
Genco Normandy | Forecast | ||||||||||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||||||||||
Sale of assets | $ 5,850 | |||||||||||||||||||||||
Broker commission (as a percent) | 2.00% | |||||||||||||||||||||||
Genco Bay | Subsequent Event | ||||||||||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||||||||||
Sale of assets | $ 7,900 | |||||||||||||||||||||||
Broker commission (as a percent) | 2.00% | |||||||||||||||||||||||
Genco Bay | Secured Debt | Subsequent Event | $495 Million Credit Facility | ||||||||||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||||||||||
Restricted cash, current | $ 4,798 | |||||||||||||||||||||||
Period for which sales proceeds from vessels will remain as restricted cash | 360 days | |||||||||||||||||||||||
Baltic Breeze | ||||||||||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||||||||||
Sale of assets | $ 7,900 | |||||||||||||||||||||||
Broker commission (as a percent) | 2.00% | |||||||||||||||||||||||
Baltic Breeze | Secured Debt | $495 Million Credit Facility | ||||||||||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||||||||||
Restricted cash, current | $ 4,797 | |||||||||||||||||||||||
Collateral vessel replacement period | 360 days | |||||||||||||||||||||||
Baltic Wind | ||||||||||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||||||||||
Sale of assets | $ 7,750 | |||||||||||||||||||||||
Broker commission (as a percent) | 2.00% | |||||||||||||||||||||||
Baltic Wind | Secured Debt | $495 Million Credit Facility | ||||||||||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||||||||||
Restricted cash, current | $ 4,575 | |||||||||||||||||||||||
Collateral vessel replacement period | 360 days | |||||||||||||||||||||||
Genco Thunder | ||||||||||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||||||||||
Sale of assets | $ 10,400 | $ 10,400 | ||||||||||||||||||||||
Broker commission (as a percent) | 2.00% | 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 | 360 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 | 360 days | |||||||||||||||||||||||
Genco Raptor | ||||||||||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||||||||||
Sale of assets | $ 10,200 | $ 10,200 | ||||||||||||||||||||||
Broker commission (as a percent) | 2.00% | 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 | 360 days | |||||||||||||||||||||||
Genco Champion | ||||||||||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||||||||||
Sale of assets | $ 6,600 | $ 6,600 | ||||||||||||||||||||||
Broker commission (as a percent) | 3.00% | 3.00% | ||||||||||||||||||||||
Genco Challenger | ||||||||||||||||||||||||
VESSEL ACQUISITIONS | ||||||||||||||||||||||||
Sale of assets | $ 5,250 | $ 5,250 | ||||||||||||||||||||||
Broker commission (as a percent) | 2.00% | 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 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Common shares outstanding, basic: | |||||
Weighted average common shares outstanding-basic | 41,928,682 | 41,749,200 | 41,898,756 | 41,739,287 | |
Common shares outstanding, diluted: | |||||
Weighted average common shares outstanding-basic | 41,928,682 | 41,749,200 | 41,898,756 | 41,739,287 | |
Weighted-average common shares outstanding, diluted (in shares) | 41,928,682 | 41,749,200 | 41,898,756 | 41,739,287 | |
Restricted Stock Units | |||||
Anti-dilutive shares (in shares) | 298,716 | 258,084 | 298,716 | 258,084 | |
Stock Options | |||||
Anti-dilutive shares (in shares) | 837,338 | 496,148 | 837,338 | 496,148 | |
MIP Warrants | |||||
Anti-dilutive shares (in shares) | 0 | 0 | 0 | 0 | |
Equity Warrants | |||||
Anti-dilutive shares (in shares) | 3,936,761 | 3,936,761 | 3,936,761 | 3,936,761 | |
Equity warrant term | 7 years | ||||
Equity Warrants | |||||
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
RELATED PARTY TRANSACTIONS | ||||
Related party transactions | $ 0 | $ 0 | $ 0 | $ 0 |
DEBT - Components of Long-term
DEBT - Components of Long-term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Line of Credit Facility | ||
Principal amount | $ 475,433 | $ 495,824 |
Less: Unamortized debt financing costs | (10,650) | (13,094) |
Less: Current portion | (80,642) | (69,747) |
Long-term debt, net | 384,141 | 412,983 |
Secured Debt | $495 Million Credit Facility | ||
Line of Credit Facility | ||
Principal amount | 356,993 | 395,724 |
Less: Unamortized debt financing costs | (9,081) | (11,642) |
Secured Debt | $133 Million Credit Facility | ||
Line of Credit Facility | ||
Principal amount | 118,440 | 100,100 |
Less: Unamortized debt financing costs | $ (1,569) | $ (1,452) |
DEBT - Expenses (Details)
DEBT - Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
DEBT | ||
Deferred financing costs, noncurrent | $ 10,650 | $ 13,094 |
DEBT - $495 Million Credit Faci
DEBT - $495 Million Credit Facility (Details) - Secured Debt $ in Thousands | Jun. 05, 2020 | Jun. 04, 2020 | Mar. 12, 2020USD ($) | Sep. 23, 2019USD ($) | Aug. 28, 2019USD ($) | Feb. 28, 2019USD ($)item | May 31, 2018USD ($)item | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) |
$495 Million Credit Facility | ||||||||||||
Line of Credit Facility | ||||||||||||
Maximum borrowing capacity | $ 495,000 | $ 495,000 | $ 495,000 | |||||||||
Remaining borrowing capacity | 0 | 0 | 0 | |||||||||
Drawdowns during the period | 11,250 | $ 21,500 | ||||||||||
Repayment of secured debt | $ 16,660 | $ 15,000 | 49,981 | $ 49,575 | ||||||||
Collateral vessel replacement period | 360 days | 180 days | ||||||||||
$460 Million Credit Facility | ||||||||||||
Line of Credit Facility | ||||||||||||
Maximum borrowing capacity | $ 460,000 | |||||||||||
Term of facilities | 5 years | |||||||||||
Number of oldest vessels identified for sale for which debt will be paid down | item | 7 | |||||||||||
$35,000 Scrubber Tranche | ||||||||||||
Line of Credit Facility | ||||||||||||
Maximum borrowing capacity | $ 35,000 | |||||||||||
Number of Capesize vessels for which the scrubber installation will be financed | item | 17 | |||||||||||
Drawdowns during the period | $ 11,250 | $ 12,200 | $ 9,300 | $ 32,750 | ||||||||
Amount of periodic payment | $ 2,339 |
DEBT - $133 Million Credit Faci
DEBT - $133 Million Credit Facility (Details) - Secured Debt | Jun. 15, 2020USD ($) | Jun. 11, 2020USD ($) | Aug. 14, 2018USD ($)item | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) |
$108 Million Credit Facility | |||||||
Line of Credit Facility | |||||||
Maximum borrowing capacity | $ 108,000,000 | ||||||
Term of facilities | 5 years | ||||||
$108 Million Credit Facility | Agreement To Purchase Ultramax And Capesize Vessels | |||||||
Line of Credit Facility | |||||||
Number of vessels committed to be acquired under purchase agreement | item | 6 | ||||||
$133 Million Credit Facility | |||||||
Line of Credit Facility | |||||||
Maximum borrowing capacity | $ 133,000,000 | $ 133,000,000 | |||||
Drawdowns during the period | 24,000,000 | ||||||
Remaining borrowing capacity | 0 | 0 | |||||
Repayment of secured debt | $ 2,380,000 | $ 1,580,000 | $ 5,660,000 | $ 4,740,000 | |||
Revolver | |||||||
Line of Credit Facility | |||||||
Maximum borrowing capacity | $ 25,000,000 | ||||||
Minimum amounts of borrowings | 1,000 | ||||||
Consecutive quarterly commitment reductions | $ 1,900,000 | ||||||
Threshold percentage of ratio of outstanding loan to aggregate appraised value of collateral vessels. | 60.00% | ||||||
Drawdowns during the period | $ 24,000,000 | ||||||
Revolver | LIBOR | |||||||
Line of Credit Facility | |||||||
Applicable margin over reference rate for interest payable | 3.00% |
DEBT - Interest Rates (Details)
DEBT - Interest Rates (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest rates on debt | ||||
Effective Interest Rate (as a percent) | 3.23% | 5.31% | 3.89% | 5.44% |
Minimum | ||||
Interest rates on debt | ||||
Range of interest rates (excluding unused commitment fees) | 2.65% | 4.54% | 2.65% | 4.54% |
Maximum | ||||
Interest rates on debt | ||||
Range of interest rates (excluding unused commitment fees) | 3.56% | 5.49% | 5.05% | 5.76% |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - RECURRING (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair value of financial instruments | ||
Principal amount of floating rate debt | $ 475,433 | $ 495,824 |
Carrying Value | ||
Fair value of financial instruments | ||
Cash and cash equivalents | 136,233 | 155,889 |
Restricted cash | 24,542 | 6,360 |
Principal amount of floating rate debt | 475,433 | 495,824 |
Fair value | ||
Fair value of financial instruments | ||
Cash and cash equivalents | 136,233 | 155,889 |
Restricted cash | 24,542 | 6,360 |
Principal amount of floating rate debt | $ 475,433 | $ 495,824 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - NONRECURRING (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($)item | Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($)item | Dec. 31, 2019USD ($) | |
Fair value of financial instruments | |||||
Impairment of operating lease right of use asset | $ 223 | ||||
Fair Value, Measurements, Nonrecurring | |||||
Fair value of financial instruments | |||||
Number of vessels written down as part of impairment | item | 7 | 3 | 21 | 5 | |
Impairment of operating lease right of use asset | $ 0 | $ 0 | $ 0 | ||
Fair Value, Measurements, Nonrecurring | Level 3 | |||||
Fair value of financial instruments | |||||
Financial assets | 0 | 0 | $ 0 | ||
Financial liabilities | $ 0 | $ 0 | $ 0 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES. | ||
Accounts payable | $ 9,863 | $ 26,040 |
Accrued general and administrative expenses | 3,232 | 4,105 |
Accrued vessel operating expenses | 9,878 | 19,459 |
Total accounts payable and accrued expenses | $ 22,973 | $ 49,604 |
VOYAGE REVENUES (Details)
VOYAGE REVENUES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income statement | ||||
Lease, Practical Expedient, Lessor Single Lease Component | true | true | ||
Lease revenue | $ 20,795 | $ 29,619 | $ 51,929 | $ 78,861 |
Voyage Revenue | 66,729 | 74,157 | 208,137 | 201,929 |
Total voyage revenues | 87,524 | 103,776 | 260,066 | 280,790 |
Voyage | ||||
Income statement | ||||
Total voyage revenues | $ 87,524 | $ 103,776 | $ 260,066 | $ 280,790 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
LEASES | ||||
Sublease income | $ 306 | $ 0 | $ 918 | $ 0 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Dec. 21, 2018item | Dec. 31, 2018USD ($)item | Dec. 31, 2019USD ($)item | Sep. 30, 2020USD ($) |
Purchase commitment | ||||
Vessel assets | $ 1,273,861 | $ 1,062,888 | ||
Purchase Agreements for BWTS | ||||
Purchase commitment | ||||
Number of vessels to receive ballast water treatments systems | item | 42 | |||
Vessel assets | $ 12,783 | 16,446 | ||
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 | |||
Number of completed scrubber installations | item | 16 | |||
Vessel assets | $ 41,270 | $ 42,723 |
STOCK-BASED COMPENSATION - 2014
STOCK-BASED COMPENSATION - 2014 MIP (Details) - 2014 MIP Plan - Warrants $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020USD ($)shares | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)shares | Sep. 30, 2019USD ($) | Feb. 25, 2020$ / shares | Dec. 31, 2019shares | Aug. 07, 2014itemshares | |
Stock Awards | |||||||
Number of tranches | item | 3 | ||||||
Amortization expense | $ | $ 0 | $ 0 | $ 0 | $ 0 | |||
Weighted Average Fair Value | |||||||
Warrants outstanding | 0 | 0 | 8,557,461 | ||||
Unrecognized compensation cost related to nonvested stock awards | |||||||
Unrecognized compensation cost | $ | $ 0 | $ 0 | |||||
$240.89 Warrants | |||||||
Stock Awards | |||||||
Aggregate number of shares of common stock available for awards | 238,066 | ||||||
Exercise price per share, as adjusted by dividends | $ / shares | $ 240.89221 | ||||||
$267.11 Warrants | |||||||
Stock Awards | |||||||
Aggregate number of shares of common stock available for awards | 246,701 | ||||||
Exercise price per share, as adjusted by dividends | $ / shares | 267.11051 | ||||||
$317.87 Warrants | |||||||
Stock Awards | |||||||
Aggregate number of shares of common stock available for awards | 370,979 | ||||||
Exercise price per share, as adjusted by dividends | $ / shares | $ 317.87359 |
STOCK-BASED COMPENSATION - 2015
STOCK-BASED COMPENSATION - 2015 EIP Stock Options and Other (Details) - 2015 EIP Plan - Stock Options - USD ($) $ / shares in Units, $ in Thousands | Feb. 25, 2020 | Mar. 04, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Stock options | |||||||
Vesting percentage of awards | 33.33% | ||||||
Vesting period | 3 years | ||||||
Unrecognized compensation cost | |||||||
Unamortized compensation cost | $ 684 | $ 684 | |||||
Future amortization of stock based compensation | |||||||
Remainder of 2020 | 194 | 194 | |||||
2021 | 367 | 367 | |||||
2022 | 111 | 111 | |||||
2023 | $ 12 | $ 12 | |||||
Number of Options | |||||||
Outstanding at beginning of period (in shares) | 322,279 | ||||||
Granted (in shares) | 344,568 | 240,540 | 344,568 | ||||
Exercisable (in shares) | (119,923) | ||||||
Forfeited (in shares) | (3,378) | ||||||
Outstanding at end of period (in shares) | 543,546 | 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 | 7.83 | |||||
Weighted Average Fair Value | |||||||
Outstanding at beginning of period (in dollars per share) | 4.72 | ||||||
Granted (in dollars per share) | $ 2.01 | 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 | 2.94 | |||||
Weighted Average Exercise Price Of Outstanding Options | $ 8.86 | $ 8.86 | |||||
Options Outstanding, Weighted Average Remaining Contractual Life | 4 years 11 months 19 days | ||||||
Options Exercisable, Number of options | 293,792 | 293,792 | |||||
Options Exercisable, Weighted Average Exercise Price | $ 10.78 | $ 10.78 | |||||
Options Exercisable, Weighted Average Remaining Contractual Life | 3 years 3 months 3 days | ||||||
Aggregate fair value | $ 693 | $ 904 | |||||
Stock options outstanding - nonvested and exercisable | 837,338 | 837,338 | 496,148 | ||||
Assumptions and Methodology | |||||||
Weighted average volatility rate (as a percent) | 53.91% | ||||||
Risk-free interest rate ( as a percent) | 1.41% | ||||||
Dividend rate ( as a percent) | 7.13% | ||||||
Expected life (in years) | 4 years | ||||||
General and Administrative Expense | |||||||
Stock options | |||||||
Amortization expense | $ 195 | $ 232 | $ 592 | $ 642 |
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 | Jul. 15, 2020 | Feb. 25, 2020 | May 15, 2019 | Mar. 04, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Stock Awards | |||||||||
Number of common shares outstanding in respect of RSUs | 373,588 | 373,588 | 326,247 | ||||||
Number of Shares | |||||||||
Balance at the beginning of the period (in shares) | 162,096 | ||||||||
Granted (in shares) | 42,642 | 173,749 | 29,580 | 106,079 | 221,466 | ||||
Vested (in shares) | (83,356) | ||||||||
Forfeited (in shares) | (1,490) | ||||||||
Balance at the end of the period (in shares) | 298,716 | 298,716 | |||||||
Weighted Average Fair Value | |||||||||
Balance at the beginning of the period (in dollars per share) | $ 9.26 | ||||||||
Granted (in dollars per share) | 6.80 | ||||||||
Vested (in dollars per share) | 9.08 | ||||||||
Forfeited (in dollars per share) | 8.39 | ||||||||
Balance at the end of the period (in dollars per share) | $ 7.49 | $ 7.49 | |||||||
Weighted-average remaining contractual life | 1 year 10 months 2 days | ||||||||
Additional disclosures | |||||||||
Total fair value of shares vested | $ 548 | $ 230 | |||||||
Unrecognized compensation cost related to nonvested stock awards | |||||||||
Unrecognized compensation cost | $ 1,191 | $ 1,191 | |||||||
Weighted-average period for recognition of unrecognized compensation cost | 1 year 10 months 2 days | ||||||||
General and Administrative Expense | |||||||||
Additional disclosures | |||||||||
Recognized nonvested stock amortization expense | $ 339 | $ 343 | $ 899 | $ 954 | |||||
Vested RSUs | |||||||||
Number of Shares | |||||||||
Number of shares vested | 505,578 | 505,578 | |||||||
Weighted Average Fair Value | |||||||||
Vested (in dollars per share) | $ 11.08 | ||||||||
Other Individuals | |||||||||
Stock Awards | |||||||||
Vesting period of awards | 3 years |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 04, 2020 | Nov. 03, 2020 | Oct. 16, 2020 | Oct. 01, 2020 | Sep. 25, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Subsequent Events | ||||||||||||
Dividends declared per share of common stock | $ 0.02 | $ 0.02 | $ 0.175 | |||||||||
Loss on disposal of vessels | $ 358 | $ 844 | $ (611) | |||||||||
Restricted cash, current | $ 24,227 | $ 24,227 | $ 6,045 | |||||||||
Baltic Jaguar | ||||||||||||
Subsequent Events | ||||||||||||
Sale of assets | $ 7,300 | |||||||||||
Broker commission (as a percent) | 3.00% | |||||||||||
Subsequent Event | ||||||||||||
Subsequent Events | ||||||||||||
Dividends declared per share of common stock | $ 0.02 | |||||||||||
Aggregate amount of dividend | $ 800 | |||||||||||
Subsequent Event | Baltic Panther | ||||||||||||
Subsequent Events | ||||||||||||
Sale of assets | $ 7,510 | |||||||||||
Broker commission (as a percent) | 3.00% | |||||||||||
Subsequent Event | Genco Loire | ||||||||||||
Subsequent Events | ||||||||||||
Sale of assets | $ 7,650 | |||||||||||
Broker commission (as a percent) | 2.00% | |||||||||||
Subsequent Event | Baltic Jaguar | ||||||||||||
Subsequent Events | ||||||||||||
Sale of assets | $ 7,300 | |||||||||||
Broker commission (as a percent) | 3.00% | |||||||||||
Subsequent Event | Baltic Jaguar | Minimum | ||||||||||||
Subsequent Events | ||||||||||||
Loss on disposal of vessels | $ 200 | |||||||||||
Subsequent Event | Baltic Jaguar | Maximum | ||||||||||||
Subsequent Events | ||||||||||||
Loss on disposal of vessels | 400 | |||||||||||
Subsequent Event | Genco Bay | ||||||||||||
Subsequent Events | ||||||||||||
Sale of assets | $ 7,900 | |||||||||||
Broker commission (as a percent) | 2.00% | |||||||||||
Subsequent Event | Genco Bay | Minimum | ||||||||||||
Subsequent Events | ||||||||||||
Loss on disposal of vessels | 300 | |||||||||||
Subsequent Event | Genco Bay | Maximum | ||||||||||||
Subsequent Events | ||||||||||||
Loss on disposal of vessels | $ 500 | |||||||||||
Subsequent Event | Secured Debt | $495 Million Credit Facility | Baltic Jaguar | ||||||||||||
Subsequent Events | ||||||||||||
Restricted cash, current | $ 4,054 | |||||||||||
Period for which sales proceeds from vessels will remain as restricted cash | 360 days | |||||||||||
Subsequent Event | Secured Debt | $495 Million Credit Facility | Genco Bay | ||||||||||||
Subsequent Events | ||||||||||||
Restricted cash, current | $ 4,798 | |||||||||||
Period for which sales proceeds from vessels will remain as restricted cash | 360 days |