Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document Information [Line Items] | ' |
Document Type | '20-F |
Amendment Flag | 'false |
Document Period End Date | 31-Dec-13 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'FY |
Trading Symbol | 'GSL |
Entity Registrant Name | 'Global Ship Lease, Inc. |
Entity Central Index Key | '0001430725 |
Current Fiscal Year End Date | '--12-31 |
Entity Well-known Seasoned Issuer | 'No |
Entity Current Reporting Status | 'Yes |
Entity Voluntary Filers | 'No |
Entity Filer Category | 'Accelerated Filer |
Class A Common Stock [Member] | ' |
Document Information [Line Items] | ' |
Entity Common Stock, Shares Outstanding | 47,513,934 |
Class B Common Stock [Member] | ' |
Document Information [Line Items] | ' |
Entity Common Stock, Shares Outstanding | 7,405,956 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $24,536 | $26,145 |
Restricted cash (note 14) | 3 | 3 |
Accounts receivable | 7,006 | 14,417 |
Prepaid expenses (note 6) | 5,337 | 795 |
Other receivables | 115 | 1,165 |
Deferred financing costs (note 8) | 1,391 | 1,493 |
Total current assets | 38,388 | 44,018 |
Vessels in operation (note 4) | 817,875 | 856,394 |
Other fixed assets | 7 | 29 |
Intangible assets (note 5) | 95 | 73 |
Deferred financing costs (note 8) | 1,882 | 3,166 |
Total non-current assets | 819,859 | 859,662 |
Total Assets | 858,247 | 903,680 |
Liabilities and Stockholders' Equity | ' | ' |
Current portion of long-term debt (note 10) | 50,110 | 50,572 |
Intangible liability - charter agreements (note 9) | 2,119 | 2,119 |
Accounts payable | 1,289 | 5,353 |
Accrued expenses | 6,887 | 5,419 |
Derivative instruments (note 7) | 8,776 | 12,225 |
Total current liabilities | 69,181 | 75,688 |
Long-term debt (note 10) | 316,256 | 375,104 |
Preferred shares (note 14) | 44,976 | 44,976 |
Intangible liability - charter agreements (note 9) | 15,812 | 17,931 |
Deferred tax liability | 43 | 27 |
Derivative instruments (note 7) | 12,513 | 23,366 |
Total long-term liabilities | 389,600 | 461,404 |
Total Liabilities | 458,781 | 537,092 |
Commitments and contingencies (note 13) | ' | ' |
Stockholders' Equity | ' | ' |
Additional paid in capital | 352,676 | 352,316 |
Retained earnings | 46,241 | 13,723 |
Total Stockholders' Equity | 399,466 | 366,588 |
Total Liabilities and Stockholders' Equity | 858,247 | 903,680 |
Class A Common Stock [Member] | ' | ' |
Stockholders' Equity | ' | ' |
Common stock | 475 | 475 |
Class B Common Stock [Member] | ' | ' |
Stockholders' Equity | ' | ' |
Common stock | $74 | $74 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Class A Common Stock [Member] | ' | ' |
Common stock, shares authorized | 214,000,000 | 214,000,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares issued | 47,513,934 | 47,481,864 |
Common stock, shares outstanding | 47,513,934 | 47,481,864 |
Class B Common Stock [Member] | ' | ' |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares issued | 7,405,956 | 7,405,956 |
Common stock, shares outstanding | 7,405,956 | 7,405,956 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Revenues | ' | ' | ' |
Time charter revenue | $143,212 | $153,205 | $156,268 |
Operating Expenses | ' | ' | ' |
Vessel operating expenses | 46,048 | 45,588 | 45,517 |
Depreciation | 40,385 | 40,343 | 40,131 |
General and administrative | 6,030 | 5,784 | 7,384 |
Impairment charge (note 5) | ' | ' | 13,645 |
Other operating income (note 11) | -411 | -342 | -336 |
Total operating expenses | 92,052 | 91,373 | 106,341 |
Operating Income | 51,160 | 61,832 | 49,927 |
Non Operating Income (Expense) | ' | ' | ' |
Interest income | 44 | 79 | 56 |
Interest expense | -18,846 | -21,178 | -20,564 |
Realized loss on interest rate derivatives | -14,045 | -18,402 | -19,393 |
Unrealized gain (loss) on interest rate derivatives (note 15) | 14,302 | 9,725 | -881 |
Income before Income Taxes | 32,615 | 32,056 | 9,145 |
Income taxes | -97 | -128 | -74 |
Net Income | $32,518 | $31,928 | $9,071 |
Class A Common Stock [Member] | ' | ' | ' |
Weighted average number of common shares outstanding | ' | ' | ' |
Basic (note 18) | 47,607,750 | 47,500,670 | 47,262,549 |
Diluted (note 18) | 47,767,266 | 47,611,657 | 47,448,012 |
Net Income per share | ' | ' | ' |
Basic (note 18) | $0.68 | $0.67 | $0.19 |
Diluted (note 18) | $0.68 | $0.67 | $0.19 |
Class B Common Stock [Member] | ' | ' | ' |
Weighted average number of common shares outstanding | ' | ' | ' |
Basic (note 18) | 7,405,956 | 7,405,956 | 7,405,956 |
Diluted (note 18) | 7,405,956 | 7,405,956 | 7,405,956 |
Net Income per share | ' | ' | ' |
Basic (note 18) | ' | ' | ' |
Diluted (note 18) | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash Flows from Operating Activities | ' | ' | ' |
Net Income | $32,518 | $31,928 | $9,071 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | ' | ' | ' |
Depreciation | 40,385 | 40,343 | 40,131 |
Impairment charge (note 5) | ' | ' | 13,645 |
Amortization of deferred financing costs (note 8) | 1,386 | 1,250 | 1,101 |
Change in fair value of derivative instruments (note 15) | -14,302 | -9,725 | 881 |
Amortization of intangible liability | -2,119 | -2,119 | -2,119 |
Settlements of hedges which do not qualify for hedge accounting (note 15) | 14,045 | 18,402 | 19,393 |
Share based compensation (note 16) | 360 | 460 | 565 |
Decrease (increase) in receivables and other assets | 3,836 | -810 | -6,952 |
(Decrease) increase in accounts payable and other liabilities | -1,772 | 3,958 | -823 |
Unrealized foreign exchange loss (gain) | 7 | 11 | -21 |
Net Cash Provided by Operating Activities | 74,344 | 83,698 | 74,872 |
Cash Flows from Investing Activities | ' | ' | ' |
Settlements of hedges which do not qualify for hedge accounting (note 15) | -14,045 | -18,402 | -19,393 |
Cash paid for other fixed assets | -2 | ' | -59 |
Cash paid for intangible assets | -43 | ' | -97 |
Cash paid for drydockings | -2,553 | -5,914 | -7,705 |
Net Cash Used in Investing Activities | -16,643 | -24,316 | -27,254 |
Cash Flows from Financing Activities | ' | ' | ' |
Repayments of debt | -59,310 | -57,936 | -49,157 |
Issuance costs of debt | ' | -1,115 | -1,007 |
Variation in restricted cash (note 14) | ' | 3,024 | ' |
Repayment of preferred shares (note 14) | ' | -3,024 | ' |
Net Cash Used in Financing Activities | -59,310 | -59,051 | -50,164 |
Net (Decrease) Increase in Cash and Cash Equivalents | -1,609 | 331 | -2,546 |
Cash and Cash Equivalents at start of Year | 26,145 | 25,814 | 28,360 |
Cash and Cash Equivalents at end of Year | 24,536 | 26,145 | 25,814 |
Supplemental Information | ' | ' | ' |
Total interest paid | 18,782 | 20,105 | 19,518 |
Total income tax paid | $78 | $69 | $144 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Retained Earnings / (Accumulated Deficit) [Member] |
In Thousands, except Share data | ||||
Balance at Dec. 31, 2010 | $324,564 | $545 | $351,295 | ($27,276) |
Balance, shares at Dec. 31, 2010 | ' | 54,536,423 | ' | ' |
Restricted Stock Units (note 16) | 565 | ' | 565 | ' |
Class A shares issued (notes 14, 16) | ' | 4 | -4 | ' |
Class A shares issued, shares (notes 14,16) | ' | 333,511 | ' | ' |
Net income for the year | 9,071 | ' | ' | 9,071 |
Balance at Dec. 31, 2011 | 334,200 | 549 | 351,856 | -18,205 |
Balance, shares at Dec. 31, 2011 | ' | 54,869,934 | ' | ' |
Restricted Stock Units (note 16) | 460 | ' | 460 | ' |
Class A shares issued, shares (notes 14,16) | ' | 17,886 | ' | ' |
Net income for the year | 31,928 | ' | ' | 31,928 |
Balance at Dec. 31, 2012 | 366,588 | 549 | 352,316 | 13,723 |
Balance, shares at Dec. 31, 2012 | ' | 54,887,820 | ' | ' |
Restricted Stock Units (note 16) | 360 | ' | 360 | ' |
Class A shares issued (notes 14, 16) | ' | ' | ' | ' |
Class A shares issued, shares (notes 14,16) | ' | 32,070 | ' | ' |
Net income for the year | 32,518 | ' | ' | 32,518 |
Balance at Dec. 31, 2013 | $399,466 | $549 | $352,676 | $46,241 |
Balance, shares at Dec. 31, 2013 | ' | 54,919,890 | ' | ' |
General
General | 12 Months Ended | |
Dec. 31, 2013 | ||
Text Block [Abstract] | ' | |
General | ' | |
1 | General | |
On August 14, 2008, Global Ship Lease, Inc. (the “Company”) merged indirectly with Marathon Acquisition Corp. (“Marathon”), a company then listed on The American Stock Exchange. Under the merger agreement, Marathon, a U.S. corporation, first merged with its wholly owned Marshall Islands subsidiary, GSL Holdings, Inc. (“Holdings”), with Holdings continuing as the surviving company. Global Ship Lease, Inc., at that time a subsidiary of CMA CGM S.A. (“CMA CGM”), then merged with Holdings, with Holdings again being the surviving company. Holdings was renamed Global Ship Lease, Inc. and became listed on the New York Stock Exchange on August 15, 2008. |
Nature_of_Operations_and_Basis
Nature of Operations and Basis of Preparation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Nature of Operations and Basis of Preparation | ' | ||||||||||||||||
2 | Nature of Operations and Basis of Preparation | ||||||||||||||||
(a) | Nature of Operations | ||||||||||||||||
The Company owns and charters out containerships. All vessels are time chartered to CMA CGM for remaining terms as at December 31, 2013 ranging from 0.30 to 12.00 years (see note 12). | |||||||||||||||||
The following table provides information about the 17 vessels chartered to CMA CGM and which are reflected in these consolidated financial statements. | |||||||||||||||||
Vessel Name | Capacity | Year Built | Purchase Date | Remaining | Daily | ||||||||||||
in TEUs (1) | by GSL(2) | Charter | Charter | ||||||||||||||
Duration | Rate | ||||||||||||||||
(years) (3) | |||||||||||||||||
Ville d’Orion (4) | 4,113 | 1997 | December 2007 | 0.3 | $ | 7 | |||||||||||
Ville d’Aquarius (4) | 4,113 | 1996 | Dec-07 | 0.3 | $ | 7 | |||||||||||
CMA CGM Matisse (5) | 2,262 | 1999 | Dec-07 | 3 | $ | 18.465 | |||||||||||
CMA CGM Utrillo (5) | 2,262 | 1999 | Dec-07 | 3 | $ | 18.465 | |||||||||||
Delmas Keta | 2,207 | 2003 | Dec-07 | 4 | $ | 18.465 | |||||||||||
Julie Delmas | 2,207 | 2002 | Dec-07 | 4 | $ | 18.465 | |||||||||||
Kumasi | 2,207 | 2002 | Dec-07 | 4 | $ | 18.465 | |||||||||||
Marie Delmas | 2,207 | 2002 | Dec-07 | 4 | $ | 18.465 | |||||||||||
CMA CGM La Tour (5) | 2,272 | 2001 | Dec-07 | 3 | $ | 18.465 | |||||||||||
CMA CGM Manet (5) | 2,272 | 2001 | Dec-07 | 3 | $ | 18.465 | |||||||||||
CMA CGM Alcazar | 5,089 | 2007 | Jan-08 | 7 | $ | 33.75 | |||||||||||
CMA CGM Château d’lf | 5,089 | 2007 | Jan-08 | 7 | $ | 33.75 | |||||||||||
CMA CGM Thalassa | 11,040 | 2008 | Dec-08 | 12 | $ | 47.2 | |||||||||||
CMA CGM Jamaica | 4,298 | 2006 | Dec-08 | 9 | $ | 25.35 | |||||||||||
CMA CGM Sambhar | 4,045 | 2006 | Dec-08 | 9 | $ | 25.35 | |||||||||||
CMA CGM America | 4,045 | 2006 | Dec-08 | 9 | $ | 25.35 | |||||||||||
CMA CGM Berlioz | 6,621 | 2001 | Aug-09 | 7.75 | $ | 34 | |||||||||||
-1 | Twenty-foot Equivalent Units. | ||||||||||||||||
-2 | Purchase dates of vessels related to the Company’s time charter business. | ||||||||||||||||
-3 | As at December 31, 2013. Plus or minus 90 days, other than Ville d’Orion and Ville d’Aquarius, at charterer’s option. | ||||||||||||||||
-4 | New charters commenced on May 1, 2013 and will expire on April 30, 2014 plus or minus 30 days at charterer’s option. On January 31, 2014 CMA CGM issued notices of redelivery for Ville d’Orion and Ville d’Aquarius. These gave CMA CGM the right to redeliver the vessels as early as between April 1 and April 15, 2014 on the expiration of the current charters. It is currently expected that one vessel will be redelivered towards the end of April 2014 and the other towards the end of May 2014. | ||||||||||||||||
-5 | Effective March 19, 2014 these charters were extended by three years to provide for new expiry dates in December 2019 and new daily charter rates of $15,300, effective as of February 1, 2014. | ||||||||||||||||
Segment Information | |||||||||||||||||
The activity of the Company currently consists solely of the ownership and provision of vessels for container shipping under time charters. | |||||||||||||||||
(b) | Basis of Preparation | ||||||||||||||||
(i) | Counterparty risk | ||||||||||||||||
All of the Company’s vessels are chartered to CMA CGM and payments to the Company under the charters are currently its sole source of operating revenue. The Company is consequently highly dependent on the performance by CMA CGM of its obligations under the charters. The container shipping industry is volatile and is currently experiencing a cyclical downturn and many container shipping companies have reported losses. | |||||||||||||||||
On February 12, 2013 CMA CGM announced it had finalised a financial restructuring, having reached agreement with its banks regarding a restructuring of their debt and a new covenant package taking into account the volatile nature of the container shipping industry. Other parts of this restructuring have been the French Fonds Strategique d’Investissement investment of $150 million in bonds redeemable for shares (completed June 2013) and an additional investment by the Yildrim Group of $100 million, also for bonds redeemable for shares. | |||||||||||||||||
If CMA CGM ceases doing business or fails to perform its obligations under the charters, the Company’s business, financial position and results of operations would be materially adversely affected as it is probable that, even if the Company was able to find replacement charters, such replacement charters would be at significantly lower daily rates and shorter durations. If such events occur, there would be significant uncertainty about the Company’s ability to continue as a going concern. | |||||||||||||||||
The Company has experienced continued delays in receiving charterhire from CMA CGM, where between one and three instalments have been outstanding. Under the charter contracts charterhire is due to be paid every 15 days in advance on the 1st and 16th of each month. As at December 31, 2013, one period of charterhire, due on December 16, 2013, was outstanding amounting to $6,184. This was received in January 2014. As at close of business on February 7, 2014, the latest practicable date prior to the issuance of these consolidated financial statements, one period of charterhire, due on February 1, 2014 amounting to $5,797 was outstanding. | |||||||||||||||||
These consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, nor to the amounts and classification of liabilities that may be necessary should the Company be unable to continue as a going concern. | |||||||||||||||||
(ii) | Credit Facility | ||||||||||||||||
A further consequence of the current cyclical downturn is that there have been declines in charter free market values of containerships. Under the terms of the Company’s credit facility, the Leverage Ratio, being the ratio of outstanding drawings under the credit facility and the aggregate charter free market value of the secured vessels, cannot exceed 75%. | |||||||||||||||||
As the Company anticipated that the Leverage Ratio as at November 30, 2012 would, if tested, exceed 75%, it agreed with its lenders on November 13, 2012, to a further waiver, for two years, of the requirement to perform the Leverage Ratio test. The next scheduled test was to be December 1, 2014. As a result of the waiver, debt cannot be accelerated for the Leverage Ratio during the waiver period and debt estimated to be payable after one year is classified as non-current in the consolidated balance sheet and the consolidated financial statements have been prepared assuming that the Company will continue as a going concern. On February 10, 2014 the Company agreed with the lenders under the Credit Facility an extension to the waiver from the requirement to test the Leverage Ratio. The next scheduled test will be as at May 1, 2015. All other terms of the waiver are unchanged. | |||||||||||||||||
The credit facility was fully repaid and terminated on March 19, 2014 (see note 19). |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Significant Accounting Policies | ' | ||
3 | Significant Accounting Policies | ||
(a) | Basis of consolidation | ||
The accompanying consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) and include the financial statements of the Company and its wholly owned subsidiaries. All inter-company transactions and accounts have been eliminated on consolidation. | |||
(b) | Use of estimates | ||
The preparation of consolidated 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 disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||
(c) | Cash and cash equivalents | ||
Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less. | |||
(d) | Restricted cash | ||
Cash and cash equivalents subject to restrictions are excluded from cash and cash equivalents in the consolidated balance sheets and are presented as restricted cash. | |||
(e) | Accounts receivable | ||
The Company carries its accounts receivable at cost less an allowance for doubtful accounts. On a periodic basis, the Company evaluates its accounts receivable and establishes an allowance for doubtful accounts, based on a history of past write-offs, collections and current credit conditions. The Company does not generally charge interest on past-due accounts unless the accounts are subject to legal action, and accounts are written off as uncollectible when all reasonable collection efforts have failed. Accounts are deemed as past-due based on contractual terms. Allowances for doubtful accounts amount to $ nil as of December 31, 2013 (2012: $ nil). | |||
(f) | Vessels | ||
Up to the date of the merger described in note 1, vessels were recorded at their acquisition cost, less an amount allocated to drydock component, less accumulated depreciation. From the date of the merger, the vessels have been recorded at their fair value at the date of the merger, less a proportion of the negative goodwill arising at the time of the merger allocated to these vessels, less accumulated depreciation and impairment loss, if any. | |||
In connection with the merger, the Company recognised an intangible asset arising from the comparison of the acquisition prices in the asset purchase agreement between the Company as buyer and CMA CGM as seller and the estimated fair values at the merger date of the vessels yet to be purchased. This intangible asset was transferred to the cost of the appropriate vessel on delivery and as all such vessels have now been delivered, no intangible asset remains in respect of these vessels. | |||
Subsequent expenditures for major improvements and upgrading are capitalized, provided they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels. | |||
Borrowing costs incurred during the construction of vessels or as part of the prefinancing of the acquisition of vessels are capitalized. Interest capitalized in the year ended December 31, 2013 was $ nil (2012 and 2011: $ nil). Other borrowing costs are expensed as incurred. | |||
(f) | Vessels (continued) | ||
Vessels are depreciated to their estimated residual value using the straight-line method over their estimated useful lives which are reviewed on an ongoing basis to ensure they reflect current technology, service potential and vessel structure. The useful lives are estimated to be 30 years from first delivery from the shipyard. | |||
Prepayments and costs directly related to the future acquisition of vessels are presented in the consolidated balance sheets as vessel deposits. | |||
(g) | Drydocking costs | ||
Upon initial purchase, an element of the purchase price of a vessel is allocated to a drydock component which is amortized on a straight line basis to the anticipated next drydocking date. Vessels are drydocked approximately every five years for major repairs and maintenance that cannot be performed while the vessels are operating. Costs directly associated with a drydocking, including the required regulatory inspection of the vessel, its hull and its machinery and for the defouling and repainting of the hull are capitalized as they are incurred and depreciated on a straight line basis over the period between drydocks. All capitalized drydocking costs have been classified within investing activities in the consolidated statements of cash flows. | |||
(h) | Intangible assets | ||
Vessel purchase options | |||
Cash consideration paid or transferred for the acquisition of purchase options to acquire vessels at a fixed purchase price are recognized as intangible assets in an amount up to the difference, as at the transaction date, between (i) the amount paid for the options plus the purchase price of the vessels and (ii) the fair value of the vessels plus the fair value of attached charters. The fair value of the vessel is assessed based on independent broker valuations. The fair value of a charter attached to the vessel is assessed based on market rates compared to the contracted attached charter rates for the life of the charter. | |||
Impairment | |||
Intangible assets are reviewed individually for impairment annually or more frequently due to events or changes in circumstances that indicate that the asset might be impaired. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s net book value, then the asset is deemed to be impaired and written down to its fair value. | |||
(i) | Intangible liabilities – charter agreements | ||
In connection with the merger (see note 1), the Company recognised an intangible liability using the market approach wherein the Company’s actual charter rates were compared to market rates at the merger date. These intangible liabilities, recognizing the below market rates as at the date of merger, are amortized as an increase of time charter revenue over the remaining term of the relevant charters. | |||
(j) | Long-lived assets | ||
Fixed assets such as vessels are reviewed individually for impairment when events or changes in circumstances indicate that their carrying amounts may not be recoverable. An impairment charge is recognized when the sum of the expected undiscounted future cash flows from the asset over its estimated remaining useful life is less than its carrying amount. An impairment charge is recorded equal to the amount by which the asset’s carrying amount exceeds its fair value. Fair value is the net present value of future cash flows discounted by an appropriate discount rate. | |||
(j) | Long-lived assets (continued) | ||
The decline in charter free vessel values referred to in note 2(b)(ii) was seen as an indicator of potential impairment of the carrying value of the Company’s vessels. Accordingly, an impairment test, based on expected undiscounted cash flows by vessel, was performed as at September 30, 2011 and again as at December 31, 2012. No impairment was recognised after each of these tests as, based on the assumptions made, the expected undiscounted future cash flows exceeded the vessels’ carrying amounts. | |||
The agreement of new charters with effect from May 1, 2013 of two of the Company’s vessels at rates below the previous rates was seen as an indicator of potential impairment of their carrying value. Accordingly, an impairment test, based on expected undiscounted cash flows by vessel, was performed for these two vessels as at March 31, 2013. Based on the assumptions made, the expected undiscounted future cash flows exceeded the vessels’ carrying amounts as at March 31, 2013 and accordingly no impairment was recognised. | |||
Due to continuing poor industry conditions, a further impairment test on a vessel by vessel basis was performed as at December 31, 2013. No impairment has been recognised as, based on the assumptions made, the expected undiscounted future cash flows exceeded the vessels’ carrying amounts. | |||
The assumptions used involve a considerable degree of estimation. Actual conditions may differ significantly from the assumptions and thus actual cash flows may be significantly different to those expected with a material effect on the recoverability of each vessel’s carrying amount. The most significant assumptions made for the determination of expected cash flows are (i) charter rates on expiry of existing charters, which are based on a reversion to the historical mean for each category of vessel, adjusted to reflect current and expected market conditions (ii) off-hire days, which are based on actual off-hire statistics for the Company’s fleet (iii) operating costs, based on current levels escalated over time based on long term trends (iv) dry docking frequency, duration and cost and (v) estimated useful life which is assessed as a total of 30 years from first delivery from the shipyard. In the case of an indication of impairment, the results of a recoverability test would also be sensitive to the discount rate applied. | |||
Based on the assumptions made, the expected undiscounted future cash flows exceeded the vessels’ carrying amounts at each of the test dates disclosed above and accordingly no impairment has been recognised. | |||
(k) | Derivative instruments | ||
Interest rate hedges | |||
Interest rate derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is designated and qualifies as a hedging instrument, and if so, the nature of the item being hedged. | |||
The Company’s interest rate derivative instruments do not qualify for hedge accounting. Changes in the fair value are recognized immediately in the consolidated statements of income within “Unrealized gain (loss) on interest rate derivatives”. Cash settlements of interest rate derivative instruments are recognized immediately in the consolidated statements of income within “Realized loss on interest rate derivatives”. Cash flows related to interest rate derivatives (including payments and periodic cash settlements) are included within “Net cash used in investing activities”. | |||
The fair value of derivatives is presented on the face of the consolidated balance sheets under the line item “Derivative instruments” and is split into current and non-current portions based on the net cash flows expected within one year. | |||
(l) | Deferred financing costs | ||
Costs incurred in connection with obtaining long term debt and in obtaining amendments to existing facilities are recorded as deferred financing costs and are amortized to interest expense using the effective interest method over the estimated duration of the related debt. Such costs include fees paid to the lenders or on the lenders’ behalf and associated legal and other professional fees. | |||
(m) | Preferred shares | ||
Preferred shares have been included within liabilities in the consolidated balance sheets and preferred share dividends included within interest expense in the consolidated statements of income as their nature is similar to that of a liability rather than equity. Holders of these mandatorily redeemable preferred shares are entitled to receive a dividend equal to 3-month U.S. dollar LIBOR plus 2% on the original issue price and rank senior to the Class A and Class B common shares with respect to dividend rights and rights upon liquidation, dissolution or winding up of the Company. | |||
(n) | Classification of long term debt | ||
Long term debt is classified within current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. | |||
(o) | Other comprehensive income (loss) | ||
Other comprehensive income (loss), which is reported in the consolidated statement of stockholders’ equity, consists of net income (loss) and other gains and losses affecting equity that, under U.S. GAAP, are excluded from net income (loss). Under ASU 2011-05, an entity reporting comprehensive income in a single continuous financial statement shall present its components in two sections, net income and other comprehensive income. As the Company does not, to date, have other comprehensive income, the accompanying consolidated financial statements only include consolidated statements of income. | |||
(p) | Revenue recognition and related operating expense | ||
The Company charters out its vessels on time charters which involves placing a vessel at a charterer’s disposal for a period of time during which the charterer uses the vessel in return for the payment of a specified daily hire rate. Such charters are accounted for as operating leases and therefore revenue is recognized on a straight line basis as the average revenues over the rental periods of such charter agreements, as service is performed, except for loss generating time charters, in which case the loss is recognized in the period when such accumulated loss is determined. The Company has no loss generating time charters. | |||
Under time charter arrangements the Company, as owner, is responsible for all the operating expenses of the vessels, such as crew costs, insurance, repairs and maintenance, and such costs are expensed as incurred. | |||
(q) | Foreign currency transactions | ||
The Company’s functional currency is the U.S. dollar as substantially all revenues and a majority of expenditures are denominated in U.S. dollars. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange at the balance sheet dates. Expenses paid in foreign currencies are recorded at the rate of exchange at the transaction date. Exchange gains and losses are included in the determination of net income (loss). | |||
(r) | Repairs and maintenance | ||
All expenditures relating to routine maintenance and repairs are expensed when incurred. | |||
(s) | Insurance | ||
The Company maintains hull and machinery insurance, war risks insurance, protection and indemnity insurance coverage, increased value insurance, and freight, demurrage and defence insurance coverage in amounts considered prudent to cover normal risks in the ordinary course of its operations. Premiums paid in advance to insurance providers are recognized as prepaid expenses and expensed over the period covered by the insurance contract. | |||
(t) | Share based compensation | ||
The Company awards restricted stock units to its management and Directors as part of their compensation. | |||
The fair value of restricted stock unit grants is determined by reference to the quoted stock price on the date of grant, adjusted for estimated dividends forgone until the restricted stock units vest. Compensation expense is recognized based on a graded expense model over the expected vesting period. | |||
(u) | Income taxes | ||
The Company and its Marshall Island subsidiaries are exempt from taxation in the Marshall Islands. The Company’s vessels are flagged in Bahamas, Cyprus and Panama and are liable for tax based on the tonnage of the vessel. The cost, which is included within operating expenses, amounted to $169, $146 and $124 for the years ended December 31, 2013, 2012 and 2011, respectively. The Cyprus subsidiaries are liable for income tax payable on any interest income earned from non-shipping activity. | |||
The Company has one subsidiary in the United Kingdom, where the principal rate of corporate income tax is 23% (2012: 24%, 2011: 26%). This subsidiary earns management and other fees from fellow group companies. | |||
The Company accounts for deferred income taxes using the liability method which requires the determination of deferred tax assets and liabilities, based upon temporary timing differences that arise between the financial statement and tax bases of recorded assets and liabilities, using enacted tax rates in effect for the year in which differences are expected to reverse. The net deferred tax asset is adjusted by a valuation allowance where appropriate, if, based on the weight of available evidence, it is more likely than not that some portion or all of the net deferred tax asset will not be realized. At December 31, 2013 a deferred tax liability of $43 (2012: $27) was recognized relating to stock based compensation costs charged to the consolidated statements of income in respect of unvested shares and timing differences between the carrying amounts of assets for financial reporting purposes and their tax bases. | |||
The Company recognizes uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based solely on the technical merits of the position. | |||
(v) | Dividends | ||
Dividends are recorded in the period in which they are declared by the Company’s Board of Directors. Dividends to be paid are presented in the consolidated balance sheets in the line item “Dividends payable”. | |||
(w) | Earnings per share | ||
Basic earnings per common share are based on income available to common shareholders divided by the weighted-average number of common shares outstanding during the period, excluding unvested restricted stock units. Diluted earnings per common share are calculated by applying the treasury stock method. All outstanding warrants and unvested restricted stock units that have a dilutive effect are included in the calculation. The basic and diluted earnings per share for the period are presented for each category of participating common shares under the two-class method. | |||
(x) | Recently issued accounting standards | ||
In January 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update (Topic 210) that clarified a previous update issued in 2011 in respect of disclosure of offsetting assets and liabilities. The amendment is effective for annual and interim periods beginning on or after January 1, 2013. The adoption of this update has led to minor disclosure amendments. | |||
In February 2013, FASB issued an update amending certain requirements for the reporting of joint and several liability arrangements (Topic 405). A reporting entity will be required to make increased disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. The amendment is effective for annual and interim periods beginning on or after December 15, 2013 and early adoption is permitted. The adoption of this update has led to minor disclosure amendments. | |||
Management do not believe that any recently issued, but not yet effective accounting pronouncements, if currently adopted, would have a material impact on the interim unaudited consolidated financial statements of the Company. |
Vessels_in_Operation_less_Accu
Vessels in Operation, less Accumulated Depreciation | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Vessels in Operation, less Accumulated Depreciation | ' | ||||||||
4 | Vessels in Operation, less Accumulated Depreciation | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Cost | $ | 1,014,473 | $ | 1,014,367 | |||||
Accumulated Depreciation | (196,598 | ) | (158,205 | ) | |||||
Drydock expenditure – in progress | — | 232 | |||||||
Net book value | $ | 817,875 | $ | 856,394 | |||||
Variations in net book value of vessels including drydocking, are presented below: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Opening balance | $ | 856,394 | $ | 890,249 | |||||
Additions in the period | 1,866 | 6,444 | |||||||
Depreciation expense | (40,385 | ) | (40,299 | ) | |||||
Closing balance | $ | 817,875 | $ | 856,394 | |||||
As of December 31, 2013 all 17 vessels were pledged as collateral under the credit facility agreement (see note 10). |
Intangible_Assets
Intangible Assets | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||
Intangible Assets | ' | ||||||||
5 | Intangible Assets | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Software development | |||||||||
Opening balance | $ | 73 | $ | 92 | |||||
Additions | 43 | — | |||||||
Depreciation | (21 | ) | (19 | ) | |||||
Closing balance | $ | 95 | $ | 73 | |||||
In 2011, vessel purchase options which had been recorded at a fair value of $13,645 and were recognised as an intangible asset were fully impaired as they lapsed without the Company exercising them. |
Prepaid_Expenses
Prepaid Expenses | 12 Months Ended | |
Dec. 31, 2013 | ||
Other Income And Expenses [Abstract] | ' | |
Prepaid Expenses | ' | |
6 | Prepaid Expenses | |
Prepaid expenses as at December 31, 2013 includes $4,800 (2012: nil) costs incurred in connection with the Company’s refinancing project. |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Investments All Other Investments [Abstract] | ' | ||||||||||
Derivative Instruments | ' | ||||||||||
7 | Derivative Instruments | ||||||||||
The fair value of derivative financial instruments contracted by the Company is as follows: | |||||||||||
December 31, | December 31, | ||||||||||
2013 | 2012 | ||||||||||
Fair value of interest rate swap hedging instruments - current and non current portions | $ | 21,289 | $ | 35,591 | |||||||
As at December 31, 2013 and December 31, 2012, none of the Company’s derivative instruments qualified for hedge accounting. | |||||||||||
The Company entered into certain derivative interest rate agreements to fix the interest rate on debt drawn or anticipated to be drawn under its credit facility. A total of $277,000 has been swapped into fixed rate debt at a weighted average rate of 3.82%, with details as follows: | |||||||||||
Start Date | Maturity Date | Notional | Fixed Rate % | ||||||||
Amount | |||||||||||
December 17, 2008 | 17-Dec-16 | $ | 60,000 | (1) 3.69 | |||||||
December 17, 2008 | 17-Dec-16 | 60,000 | (2) 3.81 | ||||||||
December 17, 2008 | 17-Dec-16 | 71,000 | (2) 3.71 | ||||||||
July 15, 2009 | 29-Aug-14 | 41,000 | 3.78 | ||||||||
October 29, 2010 | 29-Oct-15 | 45,000 | 4.25 | ||||||||
Total / Weighted average rate | $ | 277,000 | 3.82 | % | |||||||
-1 | The swap counterparty had a one time option to cancel the swaps in February 2013 which was not exercised | ||||||||||
-2 | The swap counterparties had a one time option to cancel the swaps in March 2013 which was not exercised | ||||||||||
As of December 31, 2013 the maximum length of time over which the Company has hedged its interest rate exposure was approximately three years (2012: four years). | |||||||||||
The interest rate derivatives were terminated on March 19, 2014 (see note 19). |
Deferred_Financing_Costs
Deferred Financing Costs | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Deferred Financing Costs | ' | ||||||||
8 | Deferred Financing Costs | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Opening balance | $ | 4,659 | $ | 4,794 | |||||
Expenditure in the period | — | 1,115 | |||||||
Amortization included within interest expense | (1,386 | ) | (1,250 | ) | |||||
Closing balance | $ | 3,273 | $ | 4,659 | |||||
On November 13, 2012 the Company obtained a waiver until December 1, 2014 from the Leverage Ratio test. The fees and related costs paid amounted to $1,115 and have been deferred and are being amortized over the remaining term of the credit agreement. |
Intangible_Liability_Charter_A
Intangible Liability - Charter Agreements | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Intangible Liability - Charter Agreements | ' | ||||||||
9 | Intangible Liability – Charter Agreements | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Opening balance | $ | 20,050 | $ | 22,169 | |||||
Amortization in period | (2,119 | ) | (2,119 | ) | |||||
Closing balance | $ | 17,931 | $ | 20,050 | |||||
Intangible liabilities relate to management’s estimate of the fair value of below-market charters on August 14, 2008, the date of the merger (see note 1). The intangible liabilities are being amortized for each vessel over the remaining life of the associated charter. The fair value was estimated by management based on its experience with regard to availability of similar vessels, costs to build new vessels and current market demand. The contracted lease rates were compared to the estimated market lease rates for similar vessels. The intangible liabilities were determined by discounting the difference in the projected lease cash flows using a discount rate of 8.0% and the length of the charter as the relevant time period. | |||||||||
Amortization of the intangible liabilities for the 12 initial vessels began on the date following the merger and for the remaining five vessels delivered to the Company after the merger, amortization commenced upon delivery. These intangible liabilities are amortized as an increase of time charter revenue over the remaining term of the relevant charter. |
Long_Term_Debt
Long Term Debt | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long Term Debt | ' | ||||||||
10 | Long Term Debt | ||||||||
In December 2007 the Company entered into an $800,000 senior secured credit facility with ABN AMRO Bank N.V. (formerly Fortis Bank Nederland N.V.), Citigroup Global Markets Limited (formerly Citibank), HSH Nordbank AG, Sumitomo Mitsui Banking Corporation, KFW Ipex Bank GmbH and DnB NOR Bank ASA. Subsequently, Bank of Scotland plc joined the syndicate until October 2012, when it transferred its exposure to OCM Starfish Debtco S.àr.l. In February 2013, one member of the syndicate novated part of their commitment to the following funds: FPA Hawkeye-7 Fund, FPA Crescent Fund, FPA Hawkeye Fund and FPA Value Partners Fund. | |||||||||
Amounts borrowed under the credit facility bear interest at U.S. dollar LIBOR plus a margin of 2.50%, 3.00% or 3.50% depending on the Leverage Ratio (being the ratio of the balance outstanding on the credit facility to the aggregate charter free market value of the secured vessels), determined at the end of April, May, August and November each year with updated valuations to be obtained for the tests at the end of April and November. | |||||||||
The Leverage Ratio is not permitted to exceed 75%. | |||||||||
Further to an amendment to the credit facility agreed in August 2009, between June 30, 2010 and April 30, 2011, borrowings under the credit facility were repaid quarterly in an amount equal to free cash in excess of $20,000 determined as at the previous month end subject to a minimum of $40,000 repayment a year on a rolling 12 month trailing basis. On this basis, a repayment of $13,816 was made on March 31, 2011. | |||||||||
At April 30, 2011 the Leverage Ratio was less than 75% and greater than 65%. Accordingly, from that date (i) interest margin paid on borrowings was 3.00% (ii) repayments of borrowings were fixed at $10,000 per quarter, and (iii) the Company was able to make dividend payments to common shareholders, although no such dividends were paid. On this basis, further repayments of $10,000 were made on both June 30, 2011 and September 30, 2011. | |||||||||
Due to the downturn after April 2011 in charter free market values of containerships, on November 30, 2011 the Company obtained a waiver from its lenders of the requirement to perform the Leverage Ratio test until November 30, 2012. Accordingly from November 30, 2011 (i) the interest margin on borrowings reverted to 3.50% (ii) quarterly repayments of borrowings to be made in an amount equal to free cash in excess of $20,000 determined as at the previous month end subject to a minimum of $40,000 repayment a year on a rolling 12 month trailing basis, and (iii) the Company was unable to make dividend payments to common shareholders. On this basis, repayments were made of $15,341 on December 31, 2011 and $11,788 on March 30, 2012. | |||||||||
As the Company anticipated, due to continuing poor industry conditions, that the Leverage Ratio as at November 30, 2012 would, if tested, exceed 75%, it agreed with its lenders on November 13, 2012, to a further waiver, for two years, of the requirement to perform the Leverage Ratio test. Accordingly, the next scheduled test was to be December 1, 2014. It was also agreed that all secured vessels will be included in the Leverage Ratio test, whether they are subject to a charter or not. In the waiver period, the fixed interest margin to be paid over U.S. dollar LIBOR is 3.75%, repayments are based on cash flow, as in the previous waiver, and dividends on common shares cannot be paid. | |||||||||
On February 10, 2014 the Company agreed with its lenders to extend the current waiver period through to April 30, 2015, with May 1, 2015 being the date of the next Leverage Ratio test. The current waiver terms and conditions will continue through the extension period. During the waiver period, including the extension, debt cannot be accelerated for the Leverage Ratio during the waiver period and debt estimated to be payable after one year is classified as non-current in the consolidated balance sheets. repayments of the credit facility were made of $11,080 on December 31, 2012, $14,800 on March 28, 2013, $10,797 on June 28, 2013, $15,803 on September 30, 2013 and $17,909 on December 30, 2013. | |||||||||
The final maturity date of the credit facility is August 14, 2016 at which point any remaining outstanding balance must be repaid. | |||||||||
The credit facility is secured by, inter alia, first priority mortgages on each of the Company’s 17 vessels, a pledge of shares of the vessel owning subsidiaries as well as assignments of earnings and insurances. The Company, along with all of its subsidiaries, is jointly and severally liable for the total amount of the outstanding credit facility. The financial covenants in the credit facility are: a) a minimum cash balance of the lower of $15,000 or six months net interest expense; b) net debt to total capitalization ratio not to exceed 75%; c) EBITDA to debt service, on a trailing four-quarter basis, to be no less than 1.10 to 1; and d) a minimum net worth of $200,000 (with all terms as defined in the credit facility). | |||||||||
Long term debt is summarized as follows: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Credit facility, at US Dollar LIBOR + 3.50% to 3.75% | $ | 366,366 | $ | 425,676 | |||||
Less current instalments of long term debt | (50,110 | ) | (50,572 | ) | |||||
$ | 316,256 | $ | 375,104 | ||||||
Based on (i) management’s reasonable estimate of cash flows from January 1, 2014 and (ii) the waiver of the requirement to test the Leverage Ratio until May 1, 2015 at which point it is assumed to be less than 75% meaning that the Company will be able to comply with the leverage ratio covenant at its next measurement date, the estimated repayments in each of the relevant periods are as follows: | |||||||||
Year ending December 31, | |||||||||
2014 | $ | 50,110 | |||||||
2015 | 43,761 | ||||||||
2016 | 272,495 | ||||||||
$ | 366,366 | ||||||||
The amount of excess cash generated may vary significantly from management’s estimates and consequently the repayment profile of outstanding debt may be significantly different from that presented. | |||||||||
The credit facility was fully repaid and terminated on March 19, 2014 (see note 19). |
Other_Operating_Income_Expense
Other Operating (Income) Expense | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Income And Expenses [Abstract] | ' | ||||||||||||
Other Operating (Income) Expense | ' | ||||||||||||
11 | Other Operating (Income) Expense | ||||||||||||
Other operating (income) expense is summarized as follows: | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Sundry shipping income | $ | (411 | ) | $ | (329 | ) | $ | (327 | ) | ||||
Other sundry income | — | (13 | ) | (9 | ) | ||||||||
$ | (411 | ) | $ | (342 | ) | $ | (336 | ) | |||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Related Party Transactions | ' | ||||||||
12 | Related Party Transactions | ||||||||
CMA CGM is presented as a related party as it was, until the merger referred to in note 1, the parent company of Global Ship Lease, Inc. and at December 31, 2013 is a significant shareholder of the Company, owning Class A and Class B common shares representing a 45% voting interest in the Company. | |||||||||
Amounts due to and from CMA CGM companies are summarized as follows: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Amounts due to CMA CGM companies presented within current liabilities | $ | 1,969 | $ | 7,077 | |||||
Amounts due from CMA CGM companies presented within current assets | $ | 7,006 | $ | 14,413 | |||||
CMA CGM charters all of the Company’s vessels and one of its subsidiaries provides the Company with ship management services. The current account balances at December 31, 2013 and December 31, 2012 relate to amounts payable to or recoverable from CMA CGM group companies. | |||||||||
The Company has experienced continued delays in receiving charterhire from CMA CGM, where between one and three instalments have been outstanding up to the date of these financial statements. Under the charter contracts charterhire is due to be paid every 15 days in advance on the 1st and 16th of each month. | |||||||||
As at December 31, 2013, one period of charterhire, due on December 16, 2013, was outstanding amounting to $6,184. This was received in January 2014. As at close of business on February 7, 2014, the latest practicable date prior to the issuance of these consolidated financial statements, one period of charterhire, due on February 1, 2014 amounting to $5,797 was outstanding. | |||||||||
CMA CGM holds all of the Series A preferred shares of the Company. During the year to December 31, 2013, the Company paid CMA CGM dividends on the preferred shares of $1,037 (2012: $1,161, 2011: $1,125). Dividends on preferred shares are included within interest expense. | |||||||||
Time Charter Agreements | |||||||||
All of the Company’s vessels are time chartered to CMA CGM. Under each of the time charters, hire is payable in advance and the daily rate is fixed for the duration of the charter. The charters are for remaining periods as at December 31, 2013 of between 0.3 and 12.0 years (see note 2(a)). All the $912,140 maximum contracted future charter hire receivable for the fleet set out in note 13 relates to the 17 vessels currently chartered to CMA CGM. | |||||||||
Ship Management Agreement | |||||||||
The Company outsources day to day technical management of its 17 vessels to a ship manager, CMA Ships, a wholly owned subsidiary of CMA CGM. The Company pays CMA Ships an annual management fee of $114 per vessel and reimburses costs incurred on its behalf, mainly being for the provision of crew, lubricating oils and routine maintenance. Such reimbursement is subject to a cap, depending on the vessel, of between $5.4 and $8.8 per day per vessel. The impact of the cap is determined annually and vessel by vessel for so long as the initial charters remain in place. Ship management fees expensed for the year ended December 31, 2013 amounted to $1,938 (2012: $1,938, 2011: $1,938). | |||||||||
Except for transactions with CMA CGM companies, the Company did not enter into any other related party transactions. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
13 | Commitments and Contingencies | ||||
Charter Hire Receivable | |||||
The Company has entered into time charters for its vessels. The charter hire is fixed for the duration of the charter. The maximum contracted future annual charter hire receivable (not allowing for any offhire and assuming expiry at the midpoint between the earliest and latest possible end dates) for the fleet of 17 vessels as at December 31, 2013 is as follows: | |||||
Year ending December 31, | Fleet as at | ||||
December 31, | |||||
2013 | |||||
2014 | 137,632 | ||||
2015 | 135,952 | ||||
2016 | 135,013 | ||||
2017 | 107,811 | ||||
2018 | 82,034 | ||||
Thereafter | 313,698 | ||||
$ | 912,140 | ||||
The above table does not include the effect of the amendments to four charters referred to in note 19. |
Share_Capital
Share Capital | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Text Block [Abstract] | ' | |||
Share Capital | ' | |||
14 | Share Capital | |||
At December 31, 2013 the Company had two classes of common shares. The rights of holders of Class B common shares are identical to those of holders of Class A common shares, except that the dividend rights of holders of Class B common shares are subordinated to those of holders of Class A common shares. Dividends, when declared, must be paid as follows: | ||||
• | firstly, to all Class A common shares at the applicable rate for the quarter; | |||
• | secondly, to all Class A common shares until they have received payment for all preceding quarters at the rate of $0.23 per share per quarter; | |||
• | thirdly, to all Class B common shares at the applicable rate for the quarter; | |||
• | then, to all Class A and B common shares as if they were a single class. | |||
The Class B common shares remain subordinated until the Company has paid a dividend at least equal to $0.23 per quarter per share on both the Class A and Class B common shares for the immediately preceding four-quarter period. Due to the requirements described above, Class B common shares cannot receive any dividend until all Class A common shares have received dividends representing $0.23 per share per quarter for all preceding quarters. The last quarter for which a dividend was paid was fourth quarter 2008. Should the notional arrearages of dividend on the Class A common shares be made up and a dividend at the rate of $0.23 per share be paid for four consecutive quarters, the Class B common shares convert to Class A common shares on a one-for-one basis. Also, each Class B common share will convert into a Class A common share on a change of control of the Company. | ||||
Restricted stock units are granted periodically to the Directors and management, under the Company’s 2008 Equity Incentive Plan, as part of their compensation arrangements (see note 16). | ||||
The Series A preferred shares rank senior to the common shares and are mandatorily redeemable in 12 quarterly instalments commencing August 31, 2016. They are classified as a long-term liability. The dividend that preferred shareholders are entitled to is presented as part of interest expense. | ||||
Total proceeds received in 2008, and recorded as restricted cash, from the exercise of Public Warrants prior to their expiry was $3,027 (December 31, 2011: $3,027). These proceeds were to be used to redeem the Series A preferred shares with a minimum redemption amount of $5,000. As part of the replacement time charters agreed in September 2012 for the Ville d’Aquarius and the Ville d’Orion, the Company accelerated the redemption of 63 Series A preferred shares of $48 each for $3,024. | ||||
On September 1, 2013, 6,188,088 Class A Warrants which were convertible to Class A common shares at a price of $9.25 expired without being exercised. |
Interest_Rate_Derivatives_and_
Interest Rate Derivatives and Fair Value Measurements | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Text Block [Abstract] | ' | ||||
Interest Rate Derivatives and Fair Value Measurements | ' | ||||
15 | Interest Rate Derivatives and Fair Value Measurements | ||||
The Company is exposed to the impact of interest rate changes on its variable rate debt. Accordingly, the Company has entered into interest rate swap agreements to manage the exposure to interest rate variability and details of existing interest rate derivatives are set out in note 7. These interest rate swap agreements are secured by first priority mortgages on each of the Company’s 17 vessels and rank secondary to the long-term debt (see note 10). None of the Company’s interest rate agreements qualify for hedge accounting, therefore, the net changes in the fair value of the interest rate derivative assets and liabilities at each reporting period are reflected in the current period operations as unrealized gains and losses on derivatives. Cash flows related to interest rate derivatives (initial payments of derivatives and periodic cash settlements) are included within cash flows from investing activities in the consolidated statement of cash flows. There were no initial payments on derivatives made in the years ended December 31, 2013 and December 31, 2012. | |||||
Realized gains or losses from interest rate derivatives are recognized in the consolidated statements of income together with cash settlements. In addition, the interest rate derivatives are “marked to market” at each reporting period end and are recorded at fair values. This generates unrealized gains or losses. The unrealized gain on interest rate derivatives for the year ended December 31, 2013 was $14,302 (2012: $9,725 gain, 2011: $881 loss). | |||||
The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value as follows: | |||||
Level 1. | Observable inputs such as quoted prices in active markets; | ||||
Level 2. | Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | ||||
Level 3. | Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | ||||
The Company has determined that the only derivative instruments that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy are its interest rate swap agreements. These are all categorized as Level 2 and at December 31, 2013 there was a liability of $21,289 (2012: $35,591). Within the consolidated balance sheets, there are no offsets of recognized assets or liabilities related to these derivatives. The fair value of the Company’s derivative instruments is the estimated amount that the Company would receive or pay to terminate the agreements at the reporting date, taking into account interest rates at that date. | |||||
The interest rate derivatives were terminated on March 19, 2014 (see note 19). |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||
16 | Share-Based Compensation | ||||||||||||||||
In August 2008, the Company’s Board adopted the 2008 Equity Incentive Plan (the “Plan”), which enables management, consultants and Directors of the Company and its subsidiaries to receive options, stock appreciation rights, stock grants, stock units and dividend equivalents. | |||||||||||||||||
The Plan is administered by the Board or a committee of the Board. The maximum aggregate number of Class A common shares that may be delivered pursuant to awards granted under the Plan during the 10-year term of the Plan is 1,500,000. The maximum number of Class A common shares with respect to which awards may be granted to any participant in the Plan in any fiscal year is 500,000. | |||||||||||||||||
The holder of a stock grant awarded under the Plan shall have the same voting, dividend and other rights as the Company’s other Class A common shareholders when the grant vests and the shares are issued. | |||||||||||||||||
Under the plan, the Company has issued the following share based awards: | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
Number of Units | Weighted | Actual | |||||||||||||||
Average | Fair | ||||||||||||||||
Fair Value | Value on | ||||||||||||||||
on Grant | Vesting | ||||||||||||||||
Management | Directors | Date | Date | ||||||||||||||
Unvested as at January 1, 2011 | 260,000 | 58,511 | $ | 4.23 | n/a | ||||||||||||
Vested in January 2011 | — | (58,511 | ) | 1.88 | 5.04 | ||||||||||||
Granted on March 17, 2011 | 15,000 | 17,886 | 6.15 | n/a | |||||||||||||
Vested in September 2011 | (206,250 | ) | — | 4.84 | 2.35 | ||||||||||||
Granted on September 2, 2011 | 150,000 | — | 3.07 | n/a | |||||||||||||
Vested in October 2011 | (68,750 | ) | — | 4.84 | 1.96 | ||||||||||||
Unvested as at December 31, 2011 | 150,000 | 17,886 | $ | 3.4 | n/a | ||||||||||||
Vested in January 2012 | — | (17,886 | ) | 6.15 | 1.75 | ||||||||||||
Granted on March 13, 2012 | 75,000 | 32,070 | 3.43 | n/a | |||||||||||||
Unvested as at December 31, 2012 | 225,000 | 32,070 | $ | 3.22 | n/a | ||||||||||||
Vested in January 2013 | — | (32,070 | ) | 3.43 | 3.07 | ||||||||||||
Granted on March 7, 2013 | 75,000 | 27,550 | 3.43 | n/a | |||||||||||||
Unvested as at December 31, 2013 | 300,000 | 27,550 | $ | 3.26 | n/a | ||||||||||||
The restricted stock units granted to three members of management on August 14, 2008 were to vest over a period of three years; with a third vesting each year on the anniversary of the merger. The vesting dates were subsequently amended and a total of 260,000 vested annually during September and October of 2009, 2010 and 2011. | |||||||||||||||||
The restricted stock units granted to Directors on March 1, 2010, March 17, 2011, March 13, 2012 and March 7, 2013 vested in January 2011, January 2012, January 2013 and January 2014 respectively. | |||||||||||||||||
Restricted stock units granted to one member of management on March 17, 2011 vested during September and October 2011. The restricted stock units granted to four members of management on September 2, 2011 were to vest over two years; half during September and October 2012 and the remaining half during September and October 2013. In March 2012, these grants were amended and restated to provide that vesting would occur only when the individual leaves employment, for whatever reason, provided that this was after September 30, 2012 in respect of half of the grant and after September 30, 2013 for the other half of the grant. The restricted stock units granted to management on March 13, 2012 are expected to vest when the individual leaves employment, provided that this is after September 30, 2014 and is not as a result of resignation or termination for cause. The restricted stock units granted to management on March 7, 2013 are expected to vest when the individual leaves employment, provided that this is after September 30, 2015 and is not as a result of resignation or termination for cause. | |||||||||||||||||
Using the graded vesting method of expensing the restricted stock unit grants, the weighted average fair value of the stock units is recognized as compensation costs in the consolidated statement of income over the vesting period. The fair value of the restricted stock units for this purpose is calculated by multiplying the number of stock units by the fair value of the shares at the grant date, which is discounted for dividends forfeited over the vesting period. The Company has not factored any anticipated forfeiture into these calculations based on the limited number of participants. | |||||||||||||||||
For the grants issued on March 1, 2010, March 17, 2011, September 2, 2011, March 13, 2012 and March 7, 2013, the fair value at the grant date was the closing price for the common stock on that date. The share value has not been discounted as no dividends were expected to be paid on the common stock at that time. | |||||||||||||||||
During the year ended December 31, 2013 the Company recognized a total of $360 (2012: $460, 2011: $565) in respect of share based compensation costs. As at December 31, 2013 there was a total of $252 (2012: $260) unrecognized compensation costs relating to the above share based awards. The remaining costs are expected to be recognized over a period of 21 months. |
Risks_Associated_with_Concentr
Risks Associated with Concentration | 12 Months Ended | ||
Dec. 31, 2013 | |||
Risks And Uncertainties [Abstract] | ' | ||
Risks Associated with Concentration | ' | ||
17 | Risks Associated with Concentration | ||
The Company is exposed to certain concentration risks that may adversely affect the Company’s financial position in the near term: | |||
(i) | The Company derives 100% of its revenue from CMA CGM which is exposed to the cyclicality of the container shipping industry. | ||
(ii) | There is a concentration of credit risk with respect to cash and cash equivalents at December 31, 2013 to the extent that substantially all of the amounts are deposited with three banks (2012; four banks). However, the Company believes this risk is remote as the banks are high credit quality financial institutions. |
Earnings_per_Share
Earnings per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings per Share | ' | ||||||||||||
18 | Earnings per Share | ||||||||||||
Basic earnings per common share is presented under the two-class method and is computed by dividing the earnings applicable to common stockholders by the weighted average number of common shares outstanding for the period. | |||||||||||||
Under the two class method, net income, if any, is first reduced by the amount of dividends declared in respect of common shares for the current period, if any, and the remaining earnings are allocated to common shares and participating securities to the extent that each security can share the earnings assuming all earnings for the period are distributed. For the years ended December 31, 2013, December 31, 2012 and December 31, 2011 no dividend was declared. The Class B common shareholders’ dividend rights are subordinated to those of holders of Class A common shares. Net income for the relevant period is allocated based on the contractual rights of each class of security and as there was insufficient net income to allow any dividend on the Class B common shares no earnings were allocated to Class B common shares. | |||||||||||||
Losses are only allocated to participating securities in a period of net loss if, based on the contractual terms, the relevant common shareholders have an obligation to participate in such losses. No such obligation exists for Class B common shareholders and, accordingly, losses would only be allocated to the Class A common shareholders. | |||||||||||||
At December 31, 2013, there were 327,550 restricted stock units granted and unvested as part of management’s equity incentive plan and as part of the Directors’ compensation as at the period. As of December 31, 2013 only Class A and B common shares are participating securities. | |||||||||||||
For the years ended December 31, 2013, December 31, 2012 and December 31, 2011, the diluted weighted average number of shares includes the incremental effect of outstanding stock based incentive awards but excludes the effect of outstanding warrants as these were antidilutive. | |||||||||||||
(In thousands, except share data) | Year ended | Year ended | Year ended | ||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Class A common shares | |||||||||||||
Weighted average number of common shares outstanding (B) | 47,513,846 | 47,481,766 | 47,262,549 | ||||||||||
Weighted average number of RSU’s without service conditions (note 16) (B) | 93,904 | 18,904 | — | ||||||||||
Dilutive effect of share-based awards | 159,516 | 110,987 | 185,463 | ||||||||||
Common shares and common share equivalents (F) | 47,767,266 | 47,611,657 | 47,448,012 | ||||||||||
Class B common shares | |||||||||||||
Weighted average number of common shares outstanding (D) | 7,405,956 | 7,405,956 | 7,405,956 | ||||||||||
Dilutive effect of share-based awards | — | — | — | ||||||||||
Common shares (H) | 7,405,956 | 7,405,956 | 7,405,956 | ||||||||||
Basic Earnings per Share | |||||||||||||
Net income available to shareholders | $ | 32,518 | $ | 31,928 | $ | 9,071 | |||||||
Available to: | |||||||||||||
- Class A shareholders for period | $ | 32,518 | $ | 31,928 | $ | 9,071 | |||||||
- Class A shareholders for arrears | — | — | — | ||||||||||
- Class B shareholders for period | — | — | — | ||||||||||
- allocate pro-rata between Class A and B | — | — | — | ||||||||||
Net income available for Class A (A) | $ | 32,518 | $ | 31,928 | $ | 9,071 | |||||||
Net income available for Class B (C) | — | — | — | ||||||||||
Basic Earnings per share: | |||||||||||||
Class A (A/B) | $ | 0.68 | $ | 0.67 | $ | 0.19 | |||||||
Class B (C/D) | — | — | — | ||||||||||
Diluted Earnings per Share | |||||||||||||
Net income available to shareholders | $ | 32,518 | $ | 31,928 | $ | 9,071 | |||||||
Available to: | |||||||||||||
- Class A shareholders for period | $ | 32,518 | $ | 31,928 | $ | 9,071 | |||||||
- Class A shareholders for arrears | — | — | — | ||||||||||
- Class B shareholders for period | — | — | — | ||||||||||
- allocate pro rata between Class A and B | — | — | — | ||||||||||
Net income available for Class A (E) | $ | 32,518 | $ | 31,928 | $ | 9,071 | |||||||
Net income available for Class B (G) | — | — | — | ||||||||||
Diluted Earnings per share: | |||||||||||||
Class A (E/F) | $ | 0.68 | $ | 0.67 | $ | 0.19 | |||||||
Class B (G/H) | — | — | — |
Subsequent_events
Subsequent events | 12 Months Ended | |
Dec. 31, 2013 | ||
Subsequent Events [Abstract] | ' | |
Subsequent events | ' | |
19 | Subsequent events | |
On January 31, 2014, the Company received notice from CMA CGM that it has reserved its right to redeliver CMA CGM Ville d’Orion and CMA CGM Ville d’Aquarius as early as between April 1 and April 15, 2014 on the expiration of the existing charters. | ||
One of the cranes on-board CMA CGM Julie Delmas was found to be damaged in January 2014 and is out of service. The Company has agreed with CMA CGM to reduce the daily charter rate pro-rata, from $18,465 to $10,000 per day, to reflect the diminished performance of the vessel, for as long as the crane is not operational, which could be as long as several months. | ||
On March 19, 2014 (the “Issue Date”), the Company completed a private placement of $420.0 million aggregate principal amount of 10.000% first priority secured notes due 2019. In connection with the private placement, on the Issue Date the Company also entered into a $40.0 million senior secured revolving credit facility. The Company used a portion of the net proceeds of the notes to repay all outstanding borrowings under its previous senior secured credit facility (the “Previous Credit Facility”) which was then terminated, to terminate its interest rate swap agreements and to pay related fees and expenses. These transactions are collectively referred to as the “Transactions.” | ||
Additionally, in connection with the Transactions, the Company and CMA CGM agreed to amend the terms of four existing charters that were scheduled to expire as early as September 2016 to provide for new expiry dates in December 2019, plus or minus 90 days at the charterer’s option, and new daily charter rates, effective as of February 1, 2014, of $15,300 (reduced from $18,465). |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Basis of consolidation | ' | ||
(a) | Basis of consolidation | ||
The accompanying consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) and include the financial statements of the Company and its wholly owned subsidiaries. All inter-company transactions and accounts have been eliminated on consolidation. | |||
Use of estimates | ' | ||
(b) | Use of estimates | ||
The preparation of consolidated 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 disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||
Cash and cash equivalents | ' | ||
(c) | Cash and cash equivalents | ||
Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less. | |||
Restricted cash | ' | ||
(d) | Restricted cash | ||
Cash and cash equivalents subject to restrictions are excluded from cash and cash equivalents in the consolidated balance sheets and are presented as restricted cash. | |||
Accounts receivable | ' | ||
(e) | Accounts receivable | ||
The Company carries its accounts receivable at cost less an allowance for doubtful accounts. On a periodic basis, the Company evaluates its accounts receivable and establishes an allowance for doubtful accounts, based on a history of past write-offs, collections and current credit conditions. The Company does not generally charge interest on past-due accounts unless the accounts are subject to legal action, and accounts are written off as uncollectible when all reasonable collection efforts have failed. Accounts are deemed as past-due based on contractual terms. Allowances for doubtful accounts amount to $ nil as of December 31, 2013 (2012: $ nil). | |||
Vessels | ' | ||
(f) | Vessels | ||
Up to the date of the merger described in note 1, vessels were recorded at their acquisition cost, less an amount allocated to drydock component, less accumulated depreciation. From the date of the merger, the vessels have been recorded at their fair value at the date of the merger, less a proportion of the negative goodwill arising at the time of the merger allocated to these vessels, less accumulated depreciation and impairment loss, if any. | |||
In connection with the merger, the Company recognised an intangible asset arising from the comparison of the acquisition prices in the asset purchase agreement between the Company as buyer and CMA CGM as seller and the estimated fair values at the merger date of the vessels yet to be purchased. This intangible asset was transferred to the cost of the appropriate vessel on delivery and as all such vessels have now been delivered, no intangible asset remains in respect of these vessels. | |||
Subsequent expenditures for major improvements and upgrading are capitalized, provided they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels. | |||
Borrowing costs incurred during the construction of vessels or as part of the prefinancing of the acquisition of vessels are capitalized. Interest capitalized in the year ended December 31, 2013 was $ nil (2012 and 2011: $ nil). Other borrowing costs are expensed as incurred. | |||
(f) | Vessels (continued) | ||
Vessels are depreciated to their estimated residual value using the straight-line method over their estimated useful lives which are reviewed on an ongoing basis to ensure they reflect current technology, service potential and vessel structure. The useful lives are estimated to be 30 years from first delivery from the shipyard. | |||
Prepayments and costs directly related to the future acquisition of vessels are presented in the consolidated balance sheets as vessel deposits. | |||
Drydocking costs | ' | ||
(g) | Drydocking costs | ||
Upon initial purchase, an element of the purchase price of a vessel is allocated to a drydock component which is amortized on a straight line basis to the anticipated next drydocking date. Vessels are drydocked approximately every five years for major repairs and maintenance that cannot be performed while the vessels are operating. Costs directly associated with a drydocking, including the required regulatory inspection of the vessel, its hull and its machinery and for the defouling and repainting of the hull are capitalized as they are incurred and depreciated on a straight line basis over the period between drydocks. All capitalized drydocking costs have been classified within investing activities in the consolidated statements of cash flows. | |||
Intangible assets | ' | ||
(h) | Intangible assets | ||
Vessel purchase options | |||
Cash consideration paid or transferred for the acquisition of purchase options to acquire vessels at a fixed purchase price are recognized as intangible assets in an amount up to the difference, as at the transaction date, between (i) the amount paid for the options plus the purchase price of the vessels and (ii) the fair value of the vessels plus the fair value of attached charters. The fair value of the vessel is assessed based on independent broker valuations. The fair value of a charter attached to the vessel is assessed based on market rates compared to the contracted attached charter rates for the life of the charter. | |||
Impairment | |||
Intangible assets are reviewed individually for impairment annually or more frequently due to events or changes in circumstances that indicate that the asset might be impaired. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s net book value, then the asset is deemed to be impaired and written down to its fair value. | |||
Intangible liabilities - charter agreements | ' | ||
(i) | Intangible liabilities – charter agreements | ||
In connection with the merger (see note 1), the Company recognised an intangible liability using the market approach wherein the Company’s actual charter rates were compared to market rates at the merger date. These intangible liabilities, recognizing the below market rates as at the date of merger, are amortized as an increase of time charter revenue over the remaining term of the relevant charters. | |||
Long-lived assets | ' | ||
(j) | Long-lived assets | ||
Fixed assets such as vessels are reviewed individually for impairment when events or changes in circumstances indicate that their carrying amounts may not be recoverable. An impairment charge is recognized when the sum of the expected undiscounted future cash flows from the asset over its estimated remaining useful life is less than its carrying amount. An impairment charge is recorded equal to the amount by which the asset’s carrying amount exceeds its fair value. Fair value is the net present value of future cash flows discounted by an appropriate discount rate. | |||
(j) | Long-lived assets (continued) | ||
The decline in charter free vessel values referred to in note 2(b)(ii) was seen as an indicator of potential impairment of the carrying value of the Company’s vessels. Accordingly, an impairment test, based on expected undiscounted cash flows by vessel, was performed as at September 30, 2011 and again as at December 31, 2012. No impairment was recognised after each of these tests as, based on the assumptions made, the expected undiscounted future cash flows exceeded the vessels’ carrying amounts. | |||
The agreement of new charters with effect from May 1, 2013 of two of the Company’s vessels at rates below the previous rates was seen as an indicator of potential impairment of their carrying value. Accordingly, an impairment test, based on expected undiscounted cash flows by vessel, was performed for these two vessels as at March 31, 2013. Based on the assumptions made, the expected undiscounted future cash flows exceeded the vessels’ carrying amounts as at March 31, 2013 and accordingly no impairment was recognised. | |||
Due to continuing poor industry conditions, a further impairment test on a vessel by vessel basis was performed as at December 31, 2013. No impairment has been recognised as, based on the assumptions made, the expected undiscounted future cash flows exceeded the vessels’ carrying amounts. | |||
The assumptions used involve a considerable degree of estimation. Actual conditions may differ significantly from the assumptions and thus actual cash flows may be significantly different to those expected with a material effect on the recoverability of each vessel’s carrying amount. The most significant assumptions made for the determination of expected cash flows are (i) charter rates on expiry of existing charters, which are based on a reversion to the historical mean for each category of vessel, adjusted to reflect current and expected market conditions (ii) off-hire days, which are based on actual off-hire statistics for the Company’s fleet (iii) operating costs, based on current levels escalated over time based on long term trends (iv) dry docking frequency, duration and cost and (v) estimated useful life which is assessed as a total of 30 years from first delivery from the shipyard. In the case of an indication of impairment, the results of a recoverability test would also be sensitive to the discount rate applied. | |||
Based on the assumptions made, the expected undiscounted future cash flows exceeded the vessels’ carrying amounts at each of the test dates disclosed above and accordingly no impairment has been recognised. | |||
Derivative instruments | ' | ||
(k) | Derivative instruments | ||
Interest rate hedges | |||
Interest rate derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is designated and qualifies as a hedging instrument, and if so, the nature of the item being hedged. | |||
The Company’s interest rate derivative instruments do not qualify for hedge accounting. Changes in the fair value are recognized immediately in the consolidated statements of income within “Unrealized gain (loss) on interest rate derivatives”. Cash settlements of interest rate derivative instruments are recognized immediately in the consolidated statements of income within “Realized loss on interest rate derivatives”. Cash flows related to interest rate derivatives (including payments and periodic cash settlements) are included within “Net cash used in investing activities”. | |||
The fair value of derivatives is presented on the face of the consolidated balance sheets under the line item “Derivative instruments” and is split into current and non-current portions based on the net cash flows expected within one year. | |||
Deferred financing costs | ' | ||
(l) | Deferred financing costs | ||
Costs incurred in connection with obtaining long term debt and in obtaining amendments to existing facilities are recorded as deferred financing costs and are amortized to interest expense using the effective interest method over the estimated duration of the related debt. Such costs include fees paid to the lenders or on the lenders’ behalf and associated legal and other professional fees. | |||
Preferred shares | ' | ||
(m) | Preferred shares | ||
Preferred shares have been included within liabilities in the consolidated balance sheets and preferred share dividends included within interest expense in the consolidated statements of income as their nature is similar to that of a liability rather than equity. Holders of these mandatorily redeemable preferred shares are entitled to receive a dividend equal to 3-month U.S. dollar LIBOR plus 2% on the original issue price and rank senior to the Class A and Class B common shares with respect to dividend rights and rights upon liquidation, dissolution or winding up of the Company. | |||
Classification of long term debt | ' | ||
(n) | Classification of long term debt | ||
Long term debt is classified within current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. | |||
Other comprehensive income (loss) | ' | ||
(o) | Other comprehensive income (loss) | ||
Other comprehensive income (loss), which is reported in the consolidated statement of stockholders’ equity, consists of net income (loss) and other gains and losses affecting equity that, under U.S. GAAP, are excluded from net income (loss). Under ASU 2011-05, an entity reporting comprehensive income in a single continuous financial statement shall present its components in two sections, net income and other comprehensive income. As the Company does not, to date, have other comprehensive income, the accompanying consolidated financial statements only include consolidated statements of income. | |||
Revenue recognition and related operating expense | ' | ||
(p) | Revenue recognition and related operating expense | ||
The Company charters out its vessels on time charters which involves placing a vessel at a charterer’s disposal for a period of time during which the charterer uses the vessel in return for the payment of a specified daily hire rate. Such charters are accounted for as operating leases and therefore revenue is recognized on a straight line basis as the average revenues over the rental periods of such charter agreements, as service is performed, except for loss generating time charters, in which case the loss is recognized in the period when such accumulated loss is determined. The Company has no loss generating time charters. | |||
Under time charter arrangements the Company, as owner, is responsible for all the operating expenses of the vessels, such as crew costs, insurance, repairs and maintenance, and such costs are expensed as incurred. | |||
Foreign currency transactions | ' | ||
(q) | Foreign currency transactions | ||
The Company’s functional currency is the U.S. dollar as substantially all revenues and a majority of expenditures are denominated in U.S. dollars. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange at the balance sheet dates. Expenses paid in foreign currencies are recorded at the rate of exchange at the transaction date. Exchange gains and losses are included in the determination of net income (loss). | |||
Repairs and maintenance | ' | ||
(r) | Repairs and maintenance | ||
All expenditures relating to routine maintenance and repairs are expensed when incurred. | |||
Insurance | ' | ||
(s) | Insurance | ||
The Company maintains hull and machinery insurance, war risks insurance, protection and indemnity insurance coverage, increased value insurance, and freight, demurrage and defence insurance coverage in amounts considered prudent to cover normal risks in the ordinary course of its operations. Premiums paid in advance to insurance providers are recognized as prepaid expenses and expensed over the period covered by the insurance contract. | |||
Share based compensation | ' | ||
(t) | Share based compensation | ||
The Company awards restricted stock units to its management and Directors as part of their compensation. | |||
The fair value of restricted stock unit grants is determined by reference to the quoted stock price on the date of grant, adjusted for estimated dividends forgone until the restricted stock units vest. Compensation expense is recognized based on a graded expense model over the expected vesting period. | |||
Income taxes | ' | ||
(u) | Income taxes | ||
The Company and its Marshall Island subsidiaries are exempt from taxation in the Marshall Islands. The Company’s vessels are flagged in Bahamas, Cyprus and Panama and are liable for tax based on the tonnage of the vessel. The cost, which is included within operating expenses, amounted to $169, $146 and $124 for the years ended December 31, 2013, 2012 and 2011, respectively. The Cyprus subsidiaries are liable for income tax payable on any interest income earned from non-shipping activity. | |||
The Company has one subsidiary in the United Kingdom, where the principal rate of corporate income tax is 23% (2012: 24%, 2011: 26%). This subsidiary earns management and other fees from fellow group companies. | |||
The Company accounts for deferred income taxes using the liability method which requires the determination of deferred tax assets and liabilities, based upon temporary timing differences that arise between the financial statement and tax bases of recorded assets and liabilities, using enacted tax rates in effect for the year in which differences are expected to reverse. The net deferred tax asset is adjusted by a valuation allowance where appropriate, if, based on the weight of available evidence, it is more likely than not that some portion or all of the net deferred tax asset will not be realized. At December 31, 2013 a deferred tax liability of $43 (2012: $27) was recognized relating to stock based compensation costs charged to the consolidated statements of income in respect of unvested shares and timing differences between the carrying amounts of assets for financial reporting purposes and their tax bases. | |||
The Company recognizes uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based solely on the technical merits of the position. | |||
Dividends | ' | ||
(v) | Dividends | ||
Dividends are recorded in the period in which they are declared by the Company’s Board of Directors. Dividends to be paid are presented in the consolidated balance sheets in the line item “Dividends payable”. | |||
Earnings per share | ' | ||
(w) | Earnings per share | ||
Basic earnings per common share are based on income available to common shareholders divided by the weighted-average number of common shares outstanding during the period, excluding unvested restricted stock units. Diluted earnings per common share are calculated by applying the treasury stock method. All outstanding warrants and unvested restricted stock units that have a dilutive effect are included in the calculation. The basic and diluted earnings per share for the period are presented for each category of participating common shares under the two-class method. | |||
Recently issued accounting standards | ' | ||
(x) | Recently issued accounting standards | ||
In January 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update (Topic 210) that clarified a previous update issued in 2011 in respect of disclosure of offsetting assets and liabilities. The amendment is effective for annual and interim periods beginning on or after January 1, 2013. The adoption of this update has led to minor disclosure amendments. | |||
In February 2013, FASB issued an update amending certain requirements for the reporting of joint and several liability arrangements (Topic 405). A reporting entity will be required to make increased disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. The amendment is effective for annual and interim periods beginning on or after December 15, 2013 and early adoption is permitted. The adoption of this update has led to minor disclosure amendments. | |||
Management do not believe that any recently issued, but not yet effective accounting pronouncements, if currently adopted, would have a material impact on the interim unaudited consolidated financial statements of the Company. |
Nature_of_Operations_and_Basis1
Nature of Operations and Basis of Preparation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Schedule of Vessels Chartered | ' | ||||||||||||||||
The following table provides information about the 17 vessels chartered to CMA CGM and which are reflected in these consolidated financial statements. | |||||||||||||||||
Vessel Name | Capacity | Year Built | Purchase Date | Remaining | Daily | ||||||||||||
in TEUs (1) | by GSL(2) | Charter | Charter | ||||||||||||||
Duration | Rate | ||||||||||||||||
(years) (3) | |||||||||||||||||
Ville d’Orion (4) | 4,113 | 1997 | December 2007 | 0.3 | $ | 7 | |||||||||||
Ville d’Aquarius (4) | 4,113 | 1996 | Dec-07 | 0.3 | $ | 7 | |||||||||||
CMA CGM Matisse (5) | 2,262 | 1999 | Dec-07 | 3 | $ | 18.465 | |||||||||||
CMA CGM Utrillo (5) | 2,262 | 1999 | Dec-07 | 3 | $ | 18.465 | |||||||||||
Delmas Keta | 2,207 | 2003 | Dec-07 | 4 | $ | 18.465 | |||||||||||
Julie Delmas | 2,207 | 2002 | Dec-07 | 4 | $ | 18.465 | |||||||||||
Kumasi | 2,207 | 2002 | Dec-07 | 4 | $ | 18.465 | |||||||||||
Marie Delmas | 2,207 | 2002 | Dec-07 | 4 | $ | 18.465 | |||||||||||
CMA CGM La Tour (5) | 2,272 | 2001 | Dec-07 | 3 | $ | 18.465 | |||||||||||
CMA CGM Manet (5) | 2,272 | 2001 | Dec-07 | 3 | $ | 18.465 | |||||||||||
CMA CGM Alcazar | 5,089 | 2007 | Jan-08 | 7 | $ | 33.75 | |||||||||||
CMA CGM Château d’lf | 5,089 | 2007 | Jan-08 | 7 | $ | 33.75 | |||||||||||
CMA CGM Thalassa | 11,040 | 2008 | Dec-08 | 12 | $ | 47.2 | |||||||||||
CMA CGM Jamaica | 4,298 | 2006 | Dec-08 | 9 | $ | 25.35 | |||||||||||
CMA CGM Sambhar | 4,045 | 2006 | Dec-08 | 9 | $ | 25.35 | |||||||||||
CMA CGM America | 4,045 | 2006 | Dec-08 | 9 | $ | 25.35 | |||||||||||
CMA CGM Berlioz | 6,621 | 2001 | Aug-09 | 7.75 | $ | 34 | |||||||||||
-1 | Twenty-foot Equivalent Units. | ||||||||||||||||
-2 | Purchase dates of vessels related to the Company’s time charter business. | ||||||||||||||||
-3 | As at December 31, 2013. Plus or minus 90 days, other than Ville d’Orion and Ville d’Aquarius, at charterer’s option. | ||||||||||||||||
-4 | New charters commenced on May 1, 2013 and will expire on April 30, 2014 plus or minus 30 days at charterer’s option. On January 31, 2014 CMA CGM issued notices of redelivery for Ville d’Orion and Ville d’Aquarius. These gave CMA CGM the right to redeliver the vessels as early as between April 1 and April 15, 2014 on the expiration of the current charters. It is currently expected that one vessel will be redelivered towards the end of April 2014 and the other towards the end of May 2014. | ||||||||||||||||
-5 | Effective March 19, 2014 these charters were extended by three years to provide for new expiry dates in December 2019 and new daily charter rates of $15,300, effective as of February 1, 2014. |
Vessels_in_Operation_less_Accu1
Vessels in Operation, less Accumulated Depreciation (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Schedule of Vessels in Operation, Less Accumulated Depreciation | ' | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Cost | $ | 1,014,473 | $ | 1,014,367 | |||||
Accumulated Depreciation | (196,598 | ) | (158,205 | ) | |||||
Drydock expenditure – in progress | — | 232 | |||||||
Net book value | $ | 817,875 | $ | 856,394 | |||||
Schedule of Variations in Net Book Value of Vessels Including Drydocking | ' | ||||||||
Variations in net book value of vessels including drydocking, are presented below: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Opening balance | $ | 856,394 | $ | 890,249 | |||||
Additions in the period | 1,866 | 6,444 | |||||||
Depreciation expense | (40,385 | ) | (40,299 | ) | |||||
Closing balance | $ | 817,875 | $ | 856,394 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||
Schedule of Intangible Assets | ' | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Software development | |||||||||
Opening balance | $ | 73 | $ | 92 | |||||
Additions | 43 | — | |||||||
Depreciation | (21 | ) | (19 | ) | |||||
Closing balance | $ | 95 | $ | 73 | |||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Investments All Other Investments [Abstract] | ' | ||||||||||
Fair Value of Derivative Financial Instruments | ' | ||||||||||
The fair value of derivative financial instruments contracted by the Company is as follows: | |||||||||||
December 31, | December 31, | ||||||||||
2013 | 2012 | ||||||||||
Fair value of interest rate swap hedging instruments - current and non current portions | $ | 21,289 | $ | 35,591 | |||||||
Derivative Interest Rate Agreements | ' | ||||||||||
The Company entered into certain derivative interest rate agreements to fix the interest rate on debt drawn or anticipated to be drawn under its credit facility. A total of $277,000 has been swapped into fixed rate debt at a weighted average rate of 3.82%, with details as follows: | |||||||||||
Start Date | Maturity Date | Notional | Fixed Rate % | ||||||||
Amount | |||||||||||
December 17, 2008 | 17-Dec-16 | $ | 60,000 | (1) 3.69 | |||||||
December 17, 2008 | 17-Dec-16 | 60,000 | (2) 3.81 | ||||||||
December 17, 2008 | 17-Dec-16 | 71,000 | (2) 3.71 | ||||||||
July 15, 2009 | 29-Aug-14 | 41,000 | 3.78 | ||||||||
October 29, 2010 | 29-Oct-15 | 45,000 | 4.25 | ||||||||
Total / Weighted average rate | $ | 277,000 | 3.82 | % | |||||||
-1 | The swap counterparty had a one time option to cancel the swaps in February 2013 which was not exercised | ||||||||||
-2 | The swap counterparties had a one time option to cancel the swaps in March 2013 which was not exercised |
Deferred_Financing_Costs_Table
Deferred Financing Costs (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Schedule of Deferred Financing Cost | ' | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Opening balance | $ | 4,659 | $ | 4,794 | |||||
Expenditure in the period | — | 1,115 | |||||||
Amortization included within interest expense | (1,386 | ) | (1,250 | ) | |||||
Closing balance | $ | 3,273 | $ | 4,659 | |||||
Intangible_Liability_Charter_A1
Intangible Liability - Charter Agreements (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Schedule of Intangible Liability | ' | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Opening balance | $ | 20,050 | $ | 22,169 | |||||
Amortization in period | (2,119 | ) | (2,119 | ) | |||||
Closing balance | $ | 17,931 | $ | 20,050 | |||||
Long_Term_Debt_Tables
Long Term Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Long Term Debt | ' | ||||||||
Long term debt is summarized as follows: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Credit facility, at US Dollar LIBOR + 3.50% to 3.75% | $ | 366,366 | $ | 425,676 | |||||
Less current instalments of long term debt | (50,110 | ) | (50,572 | ) | |||||
$ | 316,256 | $ | 375,104 | ||||||
The estimated repayments in each of the relevant periods are as follows: | |||||||||
Year ending December 31, | |||||||||
2014 | $ | 50,110 | |||||||
2015 | 43,761 | ||||||||
2016 | 272,495 | ||||||||
$ | 366,366 | ||||||||
Other_Operating_Income_Expense1
Other Operating (Income) Expense (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Income And Expenses [Abstract] | ' | ||||||||||||
Schedule of Other Operating (Income) Expense | ' | ||||||||||||
Other operating (income) expense is summarized as follows: | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Sundry shipping income | $ | (411 | ) | $ | (329 | ) | $ | (327 | ) | ||||
Other sundry income | — | (13 | ) | (9 | ) | ||||||||
$ | (411 | ) | $ | (342 | ) | $ | (336 | ) | |||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Summary of Amounts Due to and from CMA CGM Companies | ' | ||||||||
Amounts due to and from CMA CGM companies are summarized as follows: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Amounts due to CMA CGM companies presented within current liabilities | $ | 1,969 | $ | 7,077 | |||||
Amounts due from CMA CGM companies presented within current assets | $ | 7,006 | $ | 14,413 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Maximum Contracted Future Annual Charter Hire Receivable Before Allowance for Any Off-Hire periods | ' | ||||
The maximum contracted future annual charter hire receivable (not allowing for any offhire and assuming expiry at the midpoint between the earliest and latest possible end dates) for the fleet of 17 vessels as at December 31, 2013 is as follows: | |||||
Year ending December 31, | Fleet as at | ||||
December 31, | |||||
2013 | |||||
2014 | 137,632 | ||||
2015 | 135,952 | ||||
2016 | 135,013 | ||||
2017 | 107,811 | ||||
2018 | 82,034 | ||||
Thereafter | 313,698 | ||||
$ | 912,140 | ||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Summary of Issued Share Based Awards | ' | ||||||||||||||||
Under the plan, the Company has issued the following share based awards: | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
Number of Units | Weighted | Actual | |||||||||||||||
Average | Fair | ||||||||||||||||
Fair Value | Value on | ||||||||||||||||
on Grant | Vesting | ||||||||||||||||
Management | Directors | Date | Date | ||||||||||||||
Unvested as at January 1, 2011 | 260,000 | 58,511 | $ | 4.23 | n/a | ||||||||||||
Vested in January 2011 | — | (58,511 | ) | 1.88 | 5.04 | ||||||||||||
Granted on March 17, 2011 | 15,000 | 17,886 | 6.15 | n/a | |||||||||||||
Vested in September 2011 | (206,250 | ) | — | 4.84 | 2.35 | ||||||||||||
Granted on September 2, 2011 | 150,000 | — | 3.07 | n/a | |||||||||||||
Vested in October 2011 | (68,750 | ) | — | 4.84 | 1.96 | ||||||||||||
Unvested as at December 31, 2011 | 150,000 | 17,886 | $ | 3.4 | n/a | ||||||||||||
Vested in January 2012 | — | (17,886 | ) | 6.15 | 1.75 | ||||||||||||
Granted on March 13, 2012 | 75,000 | 32,070 | 3.43 | n/a | |||||||||||||
Unvested as at December 31, 2012 | 225,000 | 32,070 | $ | 3.22 | n/a | ||||||||||||
Vested in January 2013 | — | (32,070 | ) | 3.43 | 3.07 | ||||||||||||
Granted on March 7, 2013 | 75,000 | 27,550 | 3.43 | n/a | |||||||||||||
Unvested as at December 31, 2013 | 300,000 | 27,550 | $ | 3.26 | n/a | ||||||||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings per Share | ' | ||||||||||||
For the years ended December 31, 2013, December 31, 2012 and December 31, 2011, the diluted weighted average number of shares includes the incremental effect of outstanding stock based incentive awards but excludes the effect of outstanding warrants as these were antidilutive. | |||||||||||||
(In thousands, except share data) | Year ended | Year ended | Year ended | ||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Class A common shares | |||||||||||||
Weighted average number of common shares outstanding (B) | 47,513,846 | 47,481,766 | 47,262,549 | ||||||||||
Weighted average number of RSU’s without service conditions (note 16) (B) | 93,904 | 18,904 | — | ||||||||||
Dilutive effect of share-based awards | 159,516 | 110,987 | 185,463 | ||||||||||
Common shares and common share equivalents (F) | 47,767,266 | 47,611,657 | 47,448,012 | ||||||||||
Class B common shares | |||||||||||||
Weighted average number of common shares outstanding (D) | 7,405,956 | 7,405,956 | 7,405,956 | ||||||||||
Dilutive effect of share-based awards | — | — | — | ||||||||||
Common shares (H) | 7,405,956 | 7,405,956 | 7,405,956 | ||||||||||
Basic Earnings per Share | |||||||||||||
Net income available to shareholders | $ | 32,518 | $ | 31,928 | $ | 9,071 | |||||||
Available to: | |||||||||||||
- Class A shareholders for period | $ | 32,518 | $ | 31,928 | $ | 9,071 | |||||||
- Class A shareholders for arrears | — | — | — | ||||||||||
- Class B shareholders for period | — | — | — | ||||||||||
- allocate pro-rata between Class A and B | — | — | — | ||||||||||
Net income available for Class A (A) | $ | 32,518 | $ | 31,928 | $ | 9,071 | |||||||
Net income available for Class B (C) | — | — | — | ||||||||||
Basic Earnings per share: | |||||||||||||
Class A (A/B) | $ | 0.68 | $ | 0.67 | $ | 0.19 | |||||||
Class B (C/D) | — | — | — | ||||||||||
Diluted Earnings per Share | |||||||||||||
Net income available to shareholders | $ | 32,518 | $ | 31,928 | $ | 9,071 | |||||||
Available to: | |||||||||||||
- Class A shareholders for period | $ | 32,518 | $ | 31,928 | $ | 9,071 | |||||||
- Class A shareholders for arrears | — | — | — | ||||||||||
- Class B shareholders for period | — | — | — | ||||||||||
- allocate pro rata between Class A and B | — | — | — | ||||||||||
Net income available for Class A (E) | $ | 32,518 | $ | 31,928 | $ | 9,071 | |||||||
Net income available for Class B (G) | — | — | — | ||||||||||
Diluted Earnings per share: | |||||||||||||
Class A (E/F) | $ | 0.68 | $ | 0.67 | $ | 0.19 | |||||||
Class B (G/H) | — | — | — |
Nature_of_Operations_and_Basis2
Nature of Operations and Basis of Preparation - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||
Nov. 30, 2012 | Apr. 30, 2011 | Dec. 31, 2013 | Nov. 30, 2012 | Dec. 31, 2013 | Feb. 07, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Vessel | Credit Facility [Member] | Credit Facility [Member] | Subsequent Events [Member] | French Fonds Strategique d'Investissement [Member] | Yildrim Group [Member] | Minimum [Member] | Maximum [Member] | |||
Nature Of Operations And Basis Of Preparation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining terms | ' | ' | ' | ' | ' | ' | ' | ' | '3 months 18 days | '12 years |
Number of vessels | ' | ' | 17 | ' | ' | ' | ' | ' | ' | ' |
Bonds redeemable for shares | ' | ' | ' | ' | ' | ' | $150,000,000 | $100,000,000 | ' | ' |
Charter hire payments term | ' | ' | 'Every 15 days in advance on the 1st and 16th of each month | ' | ' | ' | ' | ' | ' | ' |
Charterhire, outstanding amount | ' | ' | $6,184,000 | ' | ' | $5,797,000 | ' | ' | ' | ' |
Maximum Leverage Ratio under credit facility | 75.00% | 75.00% | 75.00% | ' | 75.00% | ' | ' | ' | ' | ' |
Additional term of waiver for Leverage Ratio test | '2 years | ' | ' | '2 years | ' | ' | ' | ' | ' | ' |
Credit facility termination date | ' | ' | 19-Mar-14 | ' | ' | ' | ' | ' | ' | ' |
Nature_of_Operations_and_Basis3
Nature of Operations and Basis of Preparation - Schedule of Vessels Chartered (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Unit | |
Ville d' Orion [Member] | ' |
Nature Of Operations [Line Items] | ' |
Capacity in TEUs | 4,113 |
Year Built | '1997 |
Purchase Date by GSL | '2007-12 |
Remaining Charter Duration (years) | '3 months 18 days |
Daily Charter Rate | 7,000 |
Ville d' Aquarius [Member] | ' |
Nature Of Operations [Line Items] | ' |
Capacity in TEUs | 4,113 |
Year Built | '1996 |
Purchase Date by GSL | '2007-12 |
Remaining Charter Duration (years) | '3 months 18 days |
Daily Charter Rate | 7,000 |
CMA CGM Matisse [Member] | ' |
Nature Of Operations [Line Items] | ' |
Capacity in TEUs | 2,262 |
Year Built | '1999 |
Purchase Date by GSL | '2007-12 |
Remaining Charter Duration (years) | '3 years |
Daily Charter Rate | 18,465 |
CMA CGM Utrillo [Member] | ' |
Nature Of Operations [Line Items] | ' |
Capacity in TEUs | 2,262 |
Year Built | '1999 |
Purchase Date by GSL | '2007-12 |
Remaining Charter Duration (years) | '3 years |
Daily Charter Rate | 18,465 |
Delmas Keta [Member] | ' |
Nature Of Operations [Line Items] | ' |
Capacity in TEUs | 2,207 |
Year Built | '2003 |
Purchase Date by GSL | '2007-12 |
Remaining Charter Duration (years) | '4 years |
Daily Charter Rate | 18,465 |
Julie Delmas [Member] | ' |
Nature Of Operations [Line Items] | ' |
Capacity in TEUs | 2,207 |
Year Built | '2002 |
Purchase Date by GSL | '2007-12 |
Remaining Charter Duration (years) | '4 years |
Daily Charter Rate | 18,465 |
Kumasi [Member] | ' |
Nature Of Operations [Line Items] | ' |
Capacity in TEUs | 2,207 |
Year Built | '2002 |
Purchase Date by GSL | '2007-12 |
Remaining Charter Duration (years) | '4 years |
Daily Charter Rate | 18,465 |
Marie Delmas [Member] | ' |
Nature Of Operations [Line Items] | ' |
Capacity in TEUs | 2,207 |
Year Built | '2002 |
Purchase Date by GSL | '2007-12 |
Remaining Charter Duration (years) | '4 years |
Daily Charter Rate | 18,465 |
CMA CGM La Tour [Member] | ' |
Nature Of Operations [Line Items] | ' |
Capacity in TEUs | 2,272 |
Year Built | '2001 |
Purchase Date by GSL | '2007-12 |
Remaining Charter Duration (years) | '3 years |
Daily Charter Rate | 18,465 |
CMA CGM Manet [Member] | ' |
Nature Of Operations [Line Items] | ' |
Capacity in TEUs | 2,272 |
Year Built | '2001 |
Purchase Date by GSL | '2007-12 |
Remaining Charter Duration (years) | '3 years |
Daily Charter Rate | 18,465 |
CMA CGM Alcazar [Member] | ' |
Nature Of Operations [Line Items] | ' |
Capacity in TEUs | 5,089 |
Year Built | '2007 |
Purchase Date by GSL | '2008-01 |
Remaining Charter Duration (years) | '7 years |
Daily Charter Rate | 33,750 |
CMA CGM Chateau d'lf [Member] | ' |
Nature Of Operations [Line Items] | ' |
Capacity in TEUs | 5,089 |
Year Built | '2007 |
Purchase Date by GSL | '2008-01 |
Remaining Charter Duration (years) | '7 years |
Daily Charter Rate | 33,750 |
CMA CGM Thalassa [Member] | ' |
Nature Of Operations [Line Items] | ' |
Capacity in TEUs | 11,040 |
Year Built | '2008 |
Purchase Date by GSL | '2008-12 |
Remaining Charter Duration (years) | '12 years |
Daily Charter Rate | 47,200 |
CMA CGM Jamaica [Member] | ' |
Nature Of Operations [Line Items] | ' |
Capacity in TEUs | 4,298 |
Year Built | '2006 |
Purchase Date by GSL | '2008-12 |
Remaining Charter Duration (years) | '9 years |
Daily Charter Rate | 25,350 |
CMA CGM Sambhar [Member] | ' |
Nature Of Operations [Line Items] | ' |
Capacity in TEUs | 4,045 |
Year Built | '2006 |
Purchase Date by GSL | '2008-12 |
Remaining Charter Duration (years) | '9 years |
Daily Charter Rate | 25,350 |
CMA CGM America [Member] | ' |
Nature Of Operations [Line Items] | ' |
Capacity in TEUs | 4,045 |
Year Built | '2006 |
Purchase Date by GSL | '2008-12 |
Remaining Charter Duration (years) | '9 years |
Daily Charter Rate | 25,350 |
CMA CGM Berlioz [Member] | ' |
Nature Of Operations [Line Items] | ' |
Capacity in TEUs | 6,621 |
Year Built | '2001 |
Purchase Date by GSL | '2009-08 |
Remaining Charter Duration (years) | '7 years 9 months |
Daily Charter Rate | 34,000 |
Nature_of_Operations_and_Basis4
Nature of Operations and Basis of Preparation - Schedule of Vessels Chartered (Parenthetical) (Detail) (Subsequent Events [Member]) | 0 Months Ended | |
Mar. 19, 2014 | Feb. 02, 2014 | |
Subsequent Events [Member] | ' | ' |
Nature Of Operations [Line Items] | ' | ' |
Charters period extended | '3 years | ' |
New expiry dates | '2019-12 | ' |
Daily Charter Rate | ' | 15,300 |
Significant_Accounting_Policie2
Significant Accounting Policies - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2013 | Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Vessel | |||||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Allowances for doubtful accounts | ' | ' | ' | ' | ' |
Interest capitalized | ' | ' | ' | ' | ' |
Vessel estimated useful life | ' | ' | '30 years | ' | ' |
Period between scheduled regulatory drydockings | ' | ' | '5 years | ' | ' |
Impairment charges | 0 | 0 | ' | ' | 13,645 |
Number of vessels tested for potential impairment | 2 | ' | ' | ' | ' |
Redeemable preferred shares dividend paid | ' | ' | '3-month U.S. dollar LIBOR plus 2% on the original issue price | ' | ' |
Tonnage tax included within operating expenses | ' | ' | 169 | 146 | 124 |
Deferred tax liability recognized | ' | ' | $43 | $27 | ' |
United Kingdom [Member] | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Number of subsidiaries owned by the Company | ' | ' | 1 | 1 | 1 |
Principal rate of corporate income tax | ' | ' | 23.00% | 24.00% | 26.00% |
Vessels_in_Operation_less_Accu2
Vessels in Operation, less Accumulated Depreciation - Schedule of Vessels in Operation, Less Accumulated Depreciation (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Property Plant And Equipment [Abstract] | ' | ' | ' |
Cost | $1,014,473 | $1,014,367 | ' |
Accumulated Depreciation | -196,598 | -158,205 | ' |
Drydock expenditure - in progress | ' | 232 | ' |
Net book value | $817,875 | $856,394 | $890,249 |
Vessels_in_Operation_less_Accu3
Vessels in Operation, less Accumulated Depreciation - Schedule of Variations in Net Book Value of Vessels Including Drydocking (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Property Plant And Equipment [Abstract] | ' | ' |
Opening balance | $856,394 | $890,249 |
Additions in the period | 1,866 | 6,444 |
Depreciation expense | -40,385 | -40,299 |
Closing balance | $817,875 | $856,394 |
Vessels_in_Operation_less_Accu4
Vessels in Operation, less Accumulated Depreciation - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Vessel | |
Property Plant And Equipment [Abstract] | ' |
Number of vessels pledged as collateral under credit facility agreement | 17 |
Intangible_Assets_Schedule_of_
Intangible Assets - Schedule of Intangible Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Software development | ' | ' |
Opening balance | $73 | $92 |
Additions | 43 | ' |
Depreciation | -21 | -19 |
Closing balance | $95 | $73 |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2013 | Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' | ' |
Impairment charges | $0 | $0 | ' | ' | $13,645 |
Prepaid_Expenses_Additional_In
Prepaid Expenses - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule Prepaid Expenses and other assets [Line Items] | ' | ' |
Prepaid expenses | $5,337 | $795 |
Refinancing Project [Member] | ' | ' |
Schedule Prepaid Expenses and other assets [Line Items] | ' | ' |
Prepaid expenses | $4,800 | ' |
Derivative_Instruments_Fair_Va
Derivative Instruments - Fair Value of Derivative Financial Instruments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ' |
Fair value of interest rate swap hedging instruments - current and non current portions | $21,289 | $35,591 |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ' |
Derivative instruments qualified for hedging | $0 | $0 |
Nominal Value of Interest Rate Swap Agreements | $277,000 | ' |
Weighted average rate | 3.82% | ' |
Maximum length of time over which Company has hedged its interest rate exposure | '3 years | '4 years |
Maturity Date | 19-Mar-14 | ' |
Derivative_Instruments_Derivat
Derivative Instruments - Derivative Interest Rate Agreements (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Derivative [Line Items] | ' |
Notional Amount | $277,000 |
Weighted average rate | 3.82% |
December 17, 2008, One [Member] | ' |
Derivative [Line Items] | ' |
Start Date | 17-Dec-08 |
Maturity Date | 17-Dec-16 |
Notional Amount | 60,000 |
Fixed Rate % | 3.69% |
December 17, 2008, Two [Member] | ' |
Derivative [Line Items] | ' |
Start Date | 17-Dec-08 |
Maturity Date | 17-Dec-16 |
Notional Amount | 60,000 |
Fixed Rate % | 3.81% |
December 17, 2008, Three [Member] | ' |
Derivative [Line Items] | ' |
Start Date | 17-Dec-08 |
Maturity Date | 17-Dec-16 |
Notional Amount | 71,000 |
Fixed Rate % | 3.71% |
July 15, 2009 [Member] | ' |
Derivative [Line Items] | ' |
Start Date | 15-Jul-09 |
Maturity Date | 29-Aug-14 |
Notional Amount | 41,000 |
Fixed Rate % | 3.78% |
October 29, 2010 [Member] | ' |
Derivative [Line Items] | ' |
Start Date | 29-Oct-10 |
Maturity Date | 29-Oct-15 |
Notional Amount | $45,000 |
Fixed Rate % | 4.25% |
Deferred_Financing_Costs_Sched
Deferred Financing Costs - Schedule of Deferred Financing Cost (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Deferred Finance Costs [Abstract] | ' | ' | ' |
Opening balance | $4,659 | $4,794 | ' |
Expenditure in the period | ' | 1,115 | ' |
Amortization included within interest expense | -1,386 | -1,250 | -1,101 |
Closing balance | $3,273 | $4,659 | $4,794 |
Deferred_Financing_Costs_Addit
Deferred Financing Costs - Additional Information (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' |
Fees and related cost paid | $1,115 |
Intangible_Liability_Charter_A2
Intangible Liability - Charter Agreements - Schedule of Intangible Liability (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Intangible Liability Charter Agreements [Abstract] | ' | ' |
Opening balance | $20,050 | $22,169 |
Amortization in period | -2,119 | -2,119 |
Closing balance | $17,931 | $20,050 |
Intangible_Liability_Charter_A3
Intangible Liability - Charter Agreements - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Vessel | |
Finite Lived Intangible Liabilities [Line Items] | ' |
Discount rate of projected lease cash flow | 8.00% |
Number of vessels | 17 |
At Merger [Member] | Amortization [Member] | ' |
Finite Lived Intangible Liabilities [Line Items] | ' |
Number of vessels | 12 |
After Merger [Member] | Amortization [Member] | ' |
Finite Lived Intangible Liabilities [Line Items] | ' |
Number of vessels | 5 |
Long_Term_Debt_Additional_Info
Long Term Debt - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 10 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 30, 2013 | Sep. 30, 2013 | Jun. 28, 2013 | Mar. 28, 2013 | Dec. 31, 2012 | Nov. 30, 2012 | Mar. 30, 2012 | Nov. 30, 2011 | Apr. 30, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Apr. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2007 | Nov. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 31, 2009 | Dec. 31, 2013 | Dec. 31, 2013 |
Vessel | Credit Facility [Member] | Credit Facility [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior secured credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $800,000 | ' | ' | ' | ' | ' | ' |
Interest rate on credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'U.S. dollar LIBOR plus a margin of 2.50%, 3.00% or 3.50% depending on the Leverage Ratio | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage Ratio, maximum | ' | ' | ' | ' | ' | 75.00% | ' | ' | 75.00% | ' | ' | ' | ' | 75.00% | ' | ' | ' | 75.00% | ' | ' | ' | ' |
Repayment of borrowings | ' | ' | ' | ' | ' | 'Quarterly repayments of borrowings to be made in an amount equal to free cash in excess of $20,000 determined as at the previous month end subject to a minimum of $40,000 repayment a year on a rolling 12 month trailing basis | ' | ' | 'Fixed quarterly repayments of $10,000 | ' | ' | ' | 'Borrowings under the credit facility were repaid quarterly in an amount equal to free cash in excess of $20,000 determined as at the previous month end subject to a minimum of $40,000 repayment a year on a rolling 12 month trailing basis. | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Permitted Retained cash on sweep date | ' | ' | ' | ' | ' | 20,000 | ' | ' | ' | ' | ' | ' | 20,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility repayment, rolling 12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000 | 40,000 | ' |
Credit facility actual repayment | 17,909 | 15,803 | 10,797 | 14,800 | 11,080 | ' | 11,788 | ' | ' | 10,000 | 10,000 | 13,816 | ' | ' | 15,341 | ' | ' | ' | ' | ' | ' | ' |
Leverage Ratio, minimum | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit Facility Margin | ' | ' | ' | ' | ' | 3.75% | ' | 3.50% | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.50% | ' | ' | 3.75% |
Term of waiver for Leverage Ratio test | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' |
Maturity date of credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14-Aug-16 | ' | ' | ' | ' |
Financial covenants of credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'A minimum cash balance of the lower of $15,000 or six months net interest expense; b) net debt to total capitalization ratio not to exceed 75%; c) EBITDA to debt service, on a trailing four-quarter basis, to be no less than 1.10 to 1; and d) a minimum net worth of $200,000 (with all terms as defined in the credit facility) | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum cash balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Net debt to total capitalization ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% |
Number of vessels pledged as collateral under credit facility agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17 | ' | ' | ' | ' | ' | ' | ' | ' |
EBITDA to debt service ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.1 | ' |
Net worth | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility termination date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19-Mar-14 | ' | ' | ' | ' | ' | ' | ' | ' |
Long_Term_Debt_Schedule_of_Lon
Long Term Debt - Schedule of Long Term Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
Credit facility, at US Dollar LIBOR + 3.50% to 3.75% | $366,366 | $425,676 |
Less current instalments of long term debt | -50,110 | -50,572 |
Long term debt | $316,256 | $375,104 |
Long_Term_Debt_Schedule_of_Lon1
Long Term Debt - Schedule of Long Term Debt (Parenthetical) (Detail) | 0 Months Ended | ||||
Nov. 30, 2012 | Nov. 30, 2011 | Apr. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | |
Minimum [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Credit Facility Margin | 3.75% | 3.50% | 3.00% | 3.50% | 3.75% |
Long_Term_Debt_Estimated_Repay
Long Term Debt - Estimated Repayments of Long Term Debt (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
2014 | $50,110 |
2015 | 43,761 |
2016 | 272,495 |
Estimated repayments of long term debt | $366,366 |
Other_Operating_Income_Expense2
Other Operating (Income) Expense - Schedule of Other Operating (Income) Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Component Of Other Operating Income [Line Items] | ' | ' | ' |
Other operating income | ($411) | ($342) | ($336) |
Sundry Shipping Income [Member] | ' | ' | ' |
Component Of Other Operating Income [Line Items] | ' | ' | ' |
Other operating income | -411 | -329 | -327 |
Other Sundry Income [Member] | ' | ' | ' |
Component Of Other Operating Income [Line Items] | ' | ' | ' |
Other operating income | ' | ($13) | ($9) |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related Party Transaction [Line Items] | ' | ' | ' |
Voting Interest | 45.00% | ' | ' |
Charter hire payments term | 'Every 15 days in advance on the 1st and 16th of each month | ' | ' |
Charter hire outstanding | $6,184 | ' | ' |
Charter hire due date | 'December 16, 2013 | ' | ' |
Maximum contracted charter hire receivable | 912,140 | ' | ' |
Annual ship management fees | 1,938,000 | 1,938,000 | 1,938,000 |
CMA CGM [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Preferred Shares Dividend | 1,037 | 1,161 | 1,125 |
Maximum contracted charter hire receivable | 912,140 | ' | ' |
Number of vessels | 17 | ' | ' |
Annual ship management fee per vessel | 114,000 | ' | ' |
February 7, 2014 [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Charter hire outstanding | $5,797 | ' | ' |
Charter hire due date | 'February 1, 2014 | ' | ' |
Minimum [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Remaining terms | '3 months 18 days | ' | ' |
Cost reimbursement per vessel per day | 5,400 | ' | ' |
Maximum [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Remaining terms | '12 years | ' | ' |
Cost reimbursement per vessel per day | 8,800 | ' | ' |
Related_Party_Transactions_Sum
Related Party Transactions - Summary of Amounts Due to and from CMA CGM Companies (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current Assets [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Amounts due from CMA CGM companies presented within current assets | $7,006 | $14,413 |
Current Liabilities [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Amounts due to CMA CGM companies presented within current liabilities | $1,969 | $7,077 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Charters | |
Vessel | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Number of vessels | 17 |
Number of charters | 4 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Maximum Contracted Future Annual Charter Hire Receivable Before Allowance for Any Off-Hire Periods (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | ' |
2014 | $137,632 |
2015 | 135,952 |
2016 | 135,013 |
2017 | 107,811 |
2018 | 82,034 |
Thereafter | 313,698 |
Total Operating leases | $912,140 |
Share_Capital_Additional_Infor
Share Capital - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 01, 2013 | Dec. 31, 2013 | Dec. 31, 2011 |
ClassOfCommonStock | Class A Common Stock [Member] | Series A Preferred Stock [Member] | Class A Warrants [Member] | Public Warrants [Member] | Public Warrants [Member] | |
Installment | ||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' |
Classes of common shares | 2 | ' | ' | ' | ' | ' |
Required Class A common shares dividend per quarter | ' | $0.23 | ' | ' | ' | ' |
Possible future conversion basis for Class B common shares to Class A common shares | ' | 'One-for-one | ' | ' | ' | ' |
Redeemable preference shares, quarterly installments | ' | ' | 12 | ' | ' | ' |
Redeemable preference shares, redemption date | ' | ' | 31-Aug-16 | ' | ' | ' |
Total proceeds from exercise of Public Warrants | ' | ' | ' | ' | $3,027 | $3,027 |
Minimum redemption installment | ' | ' | 5,000 | ' | ' | ' |
Number of shares redeemed | ' | ' | 63 | ' | ' | ' |
Redemption price per share | ' | ' | $48 | ' | ' | ' |
Redemption amount | ' | ' | $3,024 | ' | ' | ' |
Warrants convertible to common shares | ' | ' | ' | 6,188,088 | ' | ' |
Exercise price of warrants | ' | ' | ' | $9.25 | ' | ' |
Interest_Rate_Derivatives_and_1
Interest Rate Derivatives and Fair Value Measurements - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Vessel | |||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ' | ' |
Nominal value of company's interest rate agreements qualify for hedge accounting | $0 | ' | ' |
Number of vessels | 17 | ' | ' |
Initial payments on derivatives | 0 | 0 | ' |
Unrealized gain / (loss) on interest rate derivatives | 14,302 | 9,725 | -881 |
Interest rate swap agreements, liability | $21,289 | $35,591 | ' |
Interest rate derivatives terminated date | 19-Mar-14 | ' | ' |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 2 Months Ended | 12 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 02, 2011 | Mar. 17, 2011 | Aug. 14, 2008 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2011 | Oct. 31, 2010 | Oct. 31, 2009 | Dec. 31, 2013 |
Members | Members | Members | Three Members of Management [Member] | Three Members of Management [Member] | Three Members of Management [Member] | Class A Common Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock granted under Equity Incentive Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 |
Term of Equity Incentive Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years |
Maximum number of shares which may be granted to any participant in any fiscal year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 |
Restricted stock share based compensation vesting period | ' | '2 years | ' | '3 years | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units share based compensation awards number vested | ' | ' | ' | ' | ' | ' | ' | 260,000 | 260,000 | 260,000 | ' |
Number of members granted with restricted stock units | ' | 4 | 1 | 3 | ' | ' | ' | ' | ' | ' | ' |
Common stock dividends paid | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recognized share based compensation expenses | ' | ' | ' | ' | $360 | $460 | $565 | ' | ' | ' | ' |
Unrecognized compensation cost | $252 | ' | ' | ' | $252 | $260 | ' | ' | ' | ' | ' |
Remaining expected recognized cost period | ' | ' | ' | ' | '21 months | ' | ' | ' | ' | ' | ' |
ShareBased_Compensation_Summar
Share-Based Compensation - Summary of Issued Share Based Awards (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 |
Director [Member] | Director [Member] | Director [Member] | Director [Member] | Management [Member] | Management [Member] | Management [Member] | Management [Member] | Vested in January [Member] | Vested in January [Member] | Vested in January [Member] | Vested in January [Member] | Vested in January [Member] | Vested in January [Member] | Vested in September [Member] | Vested in September [Member] | Vested in October [Member] | Vested in October [Member] | Granted in March [Member] | Granted in March [Member] | Granted in March [Member] | Granted in March [Member] | Granted in March [Member] | Granted in March [Member] | Granted In September [Member] | Granted In September [Member] | ||
Director [Member] | Director [Member] | Director [Member] | Management [Member] | Management [Member] | Management [Member] | Director [Member] | Management [Member] | Director [Member] | Management [Member] | Director [Member] | Director [Member] | Director [Member] | Management [Member] | Management [Member] | Management [Member] | Director [Member] | Management [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested, Number of Units | ' | ' | ' | ' | ' | ' | ' | ' | ' | -32,070 | -17,886 | -58,511 | ' | ' | ' | ' | -206,250 | ' | -68,750 | ' | ' | ' | ' | ' | ' | ' | ' |
Granted, Number of Units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,550 | 32,070 | 17,886 | 75,000 | 75,000 | 15,000 | ' | 150,000 |
Unvested, Number of Units Balance | 327,550 | 27,550 | 32,070 | 17,886 | 58,511 | 300,000 | 225,000 | 150,000 | 260,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested, Weighted Average Fair Value on Grant Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.43 | $6.15 | $1.88 | ' | ' | ' | ' | $4.84 | ' | $4.84 | ' | ' | ' | ' | ' | ' | ' | ' |
Granted, Weighted Average Fair Value on Grant Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.43 | $3.43 | $6.15 | $3.43 | $3.43 | $6.15 | ' | $3.07 |
Unvested, Weighted Average Fair Value on Grant Date | ' | $3.26 | $3.22 | $3.40 | $4.23 | $3.26 | $3.22 | $3.40 | $4.23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual Fair Value on Vesting Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.07 | $1.75 | $5.04 | ' | ' | ' | ' | $2.35 | ' | $1.96 | ' | ' | ' | ' | ' | ' | ' | ' |
Risks_Associated_with_Concentr1
Risks Associated with Concentration - Additional Information (Detail) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
Bank | Bank | CMA CGM [Member] | |
Sales [Member] | |||
Concentration Risk [Line Items] | ' | ' | ' |
Percentage of revenue | ' | ' | 100.00% |
Number of banks in which cash and cash equivalents deposited | 3 | 4 | ' |
Earnings_per_Share_Additional_
Earnings per Share - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings Per Share [Abstract] | ' | ' | ' |
Dividends declared | $0 | $0 | $0 |
Unvested restricted stock units | 327,550 | ' | ' |
Earnings_per_Share_Earnings_pe
Earnings per Share - Earnings per Share (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Basic Earnings per Share | ' | ' | ' |
Net income available to shareholders | $32,518 | $31,928 | $9,071 |
Available to- allocate pro-rata between Class A and B | ' | ' | ' |
Net income available to shareholders | 32,518 | 31,928 | 9,071 |
Diluted Earnings per Share | ' | ' | ' |
Net income available to shareholders | 32,518 | 31,928 | 9,071 |
Available to - allocate pro rata between Class A and B | ' | ' | ' |
Net income available to shareholders | 32,518 | 31,928 | 9,071 |
Class A Common Stock [Member] | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' |
Weighted average number of common shares outstanding | 47,513,846 | 47,481,766 | 47,262,549 |
Weighted average number of common shares outstanding | 47,607,750 | 47,500,670 | 47,262,549 |
Weighted average number of RSU's without service conditions (note 16) | 93,904 | 18,904 | ' |
Dilutive effect of share-based awards | 159,516 | 110,987 | 185,463 |
Common shares and common share equivalents | 47,767,266 | 47,611,657 | 47,448,012 |
Basic Earnings per Share | ' | ' | ' |
Net income available to shareholders | 32,518 | 31,928 | 9,071 |
Available to - Class A shareholders for arrears | ' | ' | ' |
Net income available to shareholders | 32,518 | 31,928 | 9,071 |
Earnings per share | $0.68 | $0.67 | $0.19 |
Diluted Earnings per Share | ' | ' | ' |
Net income available to shareholders | 32,518 | 31,928 | 9,071 |
Available to - Class A shareholders for arrears | ' | ' | ' |
Net income available to shareholders | $32,518 | $31,928 | $9,071 |
Earnings per share | $0.68 | $0.67 | $0.19 |
Class B Common Stock [Member] | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' |
Weighted average number of common shares outstanding | 7,405,956 | 7,405,956 | 7,405,956 |
Common shares and common share equivalents | 7,405,956 | 7,405,956 | 7,405,956 |
Basic Earnings per Share | ' | ' | ' |
Earnings per share | ' | ' | ' |
Diluted Earnings per Share | ' | ' | ' |
Earnings per share | ' | ' | ' |
Subsequent_events_Additional_I
Subsequent events - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 0 Months Ended | |||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 19, 2014 | Feb. 02, 2014 | Mar. 19, 2014 | Mar. 19, 2014 | Feb. 02, 2014 | Jan. 31, 2014 | Feb. 02, 2014 | Jan. 31, 2014 |
Charters | CMA CGM [Member] | Subsequent Events [Member] | Subsequent Events [Member] | Subsequent Events [Member] | Subsequent Events [Member] | Subsequent Events [Member] | Subsequent Events [Member] | Subsequent Events [Member] | Subsequent Events [Member] | |
Charters | Private Placement [Member] | First Priority Secured Notes Due 2019 [Member] | CMA CGM [Member] | CMA CGM [Member] | CMA CGM [Member] | CMA CGM [Member] | ||||
Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | |||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Daily Charter Rate | ' | ' | ' | 15,300 | ' | ' | 18,465 | 18,465 | 15,300 | 10,000 |
Aggregate principal amount | ' | ' | ' | ' | $420 | ' | ' | ' | ' | ' |
Senior secured credit facility | ' | ' | $40 | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' |
Secured notes due, year | ' | ' | ' | ' | ' | '2019 | ' | ' | ' | ' |
Number of charters | 4 | 4 | ' | ' | ' | ' | ' | ' | ' | ' |
New expiring period | ' | ' | '2019-12 | ' | ' | ' | '2019-12 | ' | '2016-09 | ' |