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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
July 26, 2001
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Date of Report (Date of Earliest Event Reported)
Commission file number - 2-63322
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INTERNATIONAL SHIPHOLDING CORPORATION
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Exact name of registrant as specified in its charter)
Delaware 36-2989662
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(State or other jurisdiction of I.R.S. Employer Identification Number)
incorporation or organization)
650 Poydras Street New Orleans, Louisiana 70130
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(Address of principal executive offices) (Zip Code)
(504) 529-5461
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(Registrant's telephone number, including area code)
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Item 5. Other Events
On July 26, 2001, International Shipholding Corporation (the Company)
issued the press release attached hereto as Exhibit 99 announcing the
recognition of an Asset Impairment Loss of approximately $51.3 million, net of
taxes, in accordance with FASB 121, "Accounting for the Impairment of Long-
lived Assets."
Item 7. Financial Statements and Exhibits
(c) Exhibit
Regulation
S-K Exhibit
Number Document
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99 Press Release dated
July 26, 2001
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
INTERNATIONAL SHIPHOLDING CORPORATION
___________________________________________
Gary L. Ferguson
Vice President and Chief Financial Officer
Date ___________________________
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FOR IMMEDIATE RELEASE Page 1 of 3
July 26, 2001
INTERNATIONAL SHIPHOLDING CORPORATION
REPORTS SECOND QUARTER RESULTS
New Orleans, Louisiana - International Shipholding Corporation today
reported results for the six months and quarter ended June 30, 2001 and
announced that its Board of Directors has adopted a plan to separate its LASH
(Lighter Aboard SHip) service, its Cape-size Bulk Carrier and certain special
purpose barges from the balance of its operations.
Net loss for the second quarter was $57.4 million after recognition of an asset
impairment loss of approximately $51.3 million, net of taxes, in accordance
with FASB 121, "Accounting for the Impairment of Long-lived Assets",
reflecting a non-cash charge to write-down the aforementioned assets to
estimated market value. For accounting purposes, these assets have been
reclassified in the Company's balance sheet as "Assets Held-for-Disposal".
The "Assets Held-for-Disposal" include those used in the operation of a
U.S. flag LASH service between the U.S. Gulf and Atlantic coasts and the Middle
East, East Africa, the Indian sub-continent and Southeast Asia operated under
the name "Waterman" and an international flag Trans-Atlantic LASH service
operated under the name "Forest Lines" and associated ancillary assets.
Additionally, the Company will dispose of its Cape-size Bulk Carrier and
certain special purpose barges no longer required for current operations. The
LASH services will continue to operate as separate units under the current
management while strategic transitional alternatives of the services are
considered and dispositions of the assets are evaluated. During the first six
months of 2001, these operations accounted for approximately 50% of total
revenues while at the same time contributing a negative $9.4 million against
gross voyage profits and accounting for approximately 50% of the Company's
administrative and general expenses.
The Company has retained an investment banker to assist in its efforts
regarding the impairment review and the disposition of these assets. In the
meantime, a staff reduction was effected early in the third quarter in
anticipation of the pending transition.
The second quarter results were also negatively impacted by the LASH
services as a result of schedule disruptions caused by unplanned shipyard work
on two Waterman LASH vessels as previously reported. Waterman's LASH service
schedules are expected to be restored to normal in the second half 2001 and
having taken the aforementioned impairment loss charge are expected to produce
positive results.
In early July, 2001, the Company refinanced two of its recently acquired
car/truck carriers by means of sales and leases-back to the Company. These
transactions reduced bank debt by approximately $68 million and increased
liquidity by about $30 million. As part of our on-going fleet renewal program,
we also plan to sell our 1987-built car carrier and invest the proceeds in a
newer 1998-built, more sophisticated car/truck carrier linked with a long-term
charter. Also, since we have only minimum debt applicable to the "Assets Held-
for-Disposal", as they are disposed of, our liquidity will be further enhanced
and these funds will be used to reduce other debt or provide funds for new
investments.
The Company also announced that dividends will be suspended.
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July 26, 2001 Page 2 of 3
International Shipholding Corporation
Reports Second Quarter Results
Unaudited results for the periods indicated along with prior year results
are (in thousands except share and per share data):
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2001 2000 2001 2000
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Revenues $ 72,686 $ 85,265 $149,804 $170,614
Subsidy Revenue 3,643 3,672 6,924 7,347
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76,329 88,937 156,728 177,961
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Operating Expenses:
Voyage Expenses 62,486 65,797 125,940 135,704
Vessel and Barge Depreciation 9,122 9,841 18,428 19,783
Impairment Loss on Assets
Held-for-Disposal 78,928 - 78,928 -
Impairment Loss - - 2,355 -
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Gross Voyage (Loss) Profit (74,207) 13,299 (68,923) 22,474
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Administrative and General
Expenses 6,149 5,862 12,144 11,568
(Loss) Gain on Sale of Vessel (1,065) 5,063 (2,335) 5,063
Gain on Sale of Other Assets - - 1,204 -
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Operating (Loss) Income (81,421) 12,500 (82,198) 15,969
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Interest:
Interest Expense 7,270 8,346 15,104 16,870
Investment Income (246) (459) (574) (718)
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7,024 7,887 14,530 16,152
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(Loss) Income Before Benefit
(Provision) for Income Taxes
and Equity in Net Income Of
Unconsolidated Entities (88,445) 4,613 (96,728) (183)
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Benefit (Provision) for
Income Taxes 30,829 (1,730) 33,613 (188)
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Equity in Net Income of
Unconsolidated Entities
(Net of Applicable Taxes) 217 59 363 14
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Net (Loss) Income $ (57,399) $ 2,942 $ (62,752) $ (357)
========== ========== ========== ==========
Basic and Diluted Earnings Per Share:
Net (Loss) Income $ (9.44) $ 0.48 $ (10.32) $ (0.06)
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Weighted Average Shares of
Common Stock Outstanding 6,082,887 6,082,887 6,082,887 6,083,021
Earnings Before Interest, Taxes,
Depreciation (including impairment
losses), and Amortization (EBITDA)
(Includes Gains/Losses on
Sales of Assets) $12,410 $28,681 $29,067 $48,509
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July 26, 2001 Page 3 of 3
International Shipholding Corporation
Reports Second Quarter Results
Certain statements made in this release on behalf of the Company that are
not based on historical facts are intended to be forward-looking statements
within the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are based on
assumptions about future events and are therefore subject to risks and
uncertainties. The Company cautions readers that certain important factors
have affected and may affect in the future the Company's actual consolidated
results of operations and may cause future results to differ materially from
those expressed in or implied by any forward-looking statements made in this
release on behalf of the Company. A description of certain of these important
factors is contained in the Company's Form 10-K filed with the Securities and
Exchange Commission for the year ended December 31, 2000.
The common Stock in International Shipholding Corporation is traded on
the New York Stock Exchange with the symbol ISH.
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Contacts:
Niels W. Johnsen, Chairman (212) 943-4141
Erik F. Johnsen, President (504) 529-5461