Exhibit 99.1
International Shipholding Corporation Reports Fourth Quarter Results
NEW ORLEANS--(BUSINESS WIRE)--Jan. 30, 2004--International
Shipholding Corporation (NYSE:ISH) today reported results for the
three month and twelve month periods ended December 31, 2003. Net
income for the three months ended December 31, 2003 was $1.651 Million
as compared to net income of $793,000 for the three months ended
December 31, 2002. For the full year 2003, net income was $5.491
Million as compared to a net loss of $136,000 for the full year 2002.
The primary factors contributing to the improved operating results
in the fourth quarter of 2003 as compared to the same quarter of 2002
were higher current quarter dividends from our minority investment in
four Capesize bulk carriers resulting from a strong dry bulk freight
market. Results from our Pure Car/Truck Carriers were also higher in
the current quarter as a result of increased cargo volume. We sold our
12.5% investment in the aforementioned four ships during the third and
fourth quarters of 2003 at about breakeven and simultaneously
reinvested at a 50% level in two of the vessels. Retirements of debt
during the past year, together with lower interest rates on variable
rate loans, resulted in reduced interest expense during the fourth
quarter of 2003 as compared to the same quarter of 2002.
Results from our Transatlantic liner service and U.S. Flag
Waterman liner service were lower in the fourth quarter 2003 as
compared to the same quarter of 2002 due to lower cargo volumes in the
current period and higher than anticipated operating costs mainly due
to the weak dollar and steel tariffs. Although the full year 2003
results from our U.S. flag coal carrier, ENERGY ENTERPRISE, which
operates predominantly in the coastwise trade, were positive, the
quarterly results were lower in the fourth quarter of 2003, as
compared to the same quarter of 2002, because the vessel operated for
a part of the 2002 quarter at higher rates as compared to 2003. The
operating results for the fourth quarter of 2003 were also impacted as
a result of the sale at a small gain of our special purpose vessel
GREEN WAVE which, because of her age, had reached the end of its
economic life. The vessel operated fully in the fourth quarter of 2002
under a charter to the Military Sealift Command.
Improvement in the full year 2003 as compared to 2002 occurred in
several areas of our operations. Improved results were achieved in
2003 in our Rail/Ferry Service as a result of higher cargo volumes in
the current year. Additionally, our U.S. Flag liner service made
positive contributions in 2003 as compared to 2002. Also our U.S. Flag
coal carrier, ENERGY ENTERPRISE, was utilized for all but two days
during 2003 under its basic time charter contract as compared to the
same period of the previous year when it was out of service
thirty-three days for repairs and during which it operated ninety-one
days in the spot market at lower rates as compared to its basic
charter. As mentioned above, dividends from our minority investment in
four Capesize bulk carriers were higher in 2003 as a result of a
strong dry bulk freight market. However, operating results from our
recently sold special purpose vessel, GREEN WAVE, were lower in 2003
as compared to 2002 when the vessel operated under a charter to the
Military Sealift Command. Additionally, interest expense was lower in
2003 as a result of retirements of debt during the past year together
with lower interest rates on variable rate loans.
The current year was negatively impacted by the recognition of
costs associated with the retirement of debt related to our U.S. Flag
coal carrier, ENERGY ENTERPRISE, amounting to $2.6 Million before tax
or $1.7 Million after tax as a result of U.S. Generating New England,
Inc., charterer of the ENERGY ENTERPRISE, having filed a petition for
bankruptcy protection on July 8, 2003. This filing, as previously
reported, became an event of default under the vessel's debt indenture
resulting in the acceleration of principal and interest and triggering
cross defaults under certain of our other debt agreements. In order to
cure the technical defaults thereby created, we secured alternative
financing during August 2003 and paid in full the outstanding
obligations associated with the ENERGY ENTERPRISE loan. Settlement of
the loan included the payment of a "make-whole" prepayment penalty,
which we otherwise would not have had to pay, and a write-off of
deferred financing charges which together make up the total before tax
charge of $2.6 Million or $1.7 Million after tax. On the positive
side, we realized a before tax net gain of approximately $1.4 Million
in 2003 representing a discount on the retirement of approximately
$10.685 Million of our 7.75% Unsecured Notes scheduled to mature in
2007.
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, 2002.
Unaudited results for the periods indicated along with prior year
results are (in thousands except share and per share data):
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2003 2002 2003 2002
-------- -------- -------- --------
Revenues $61,952 $60,396 $257,813 $227,412
Operating Expenses:
Voyage Expenses 50,472 45,849 203,839 177,836
Vessel and Barge
Depreciation 5,055 4,699 20,134 19,140
Impairment Loss - 28 - (66)
---------- ---------- ---------- ----------
Gross Voyage Profit 6,425 9,820 33,840 30,502
---------- ---------- ---------- ----------
Administrative and General
Expenses 3,905 3,795 15,646 15,734
Gain on Sale of Vessels and
Other Assets (1,103) (20) (1,393) (557)
---------- ---------- ---------- ----------
Operating Income 3,623 6,045 19,587 15,325
---------- ---------- ---------- ----------
Interest and Other:
Interest Expense 2,900 4,467 12,514 17,706
Impairment Loss on
Investment - 598 - 598
Investment Income (1,513) (78) (2,162) (656)
Other Income - (16) - (1,498)
Loss (Gain) on Early
Extinguishment of
Debt - (168) 1,310 (65)
---------- ---------- ---------- ----------
1,387 4,803 11,662 16,085
---------- ---------- ---------- ----------
Income (Loss) Before
Provision (Benefit) for
Income Taxes and Equity
in Net Income of
Unconsolidated Entities 2,236 1,242 7,925 (760)
---------- ---------- ---------- ----------
Provision (Benefit) for
Income Taxes 747 581 2,856 (69)
---------- ---------- ---------- ----------
Equity in Net Income of
Unconsolidated Entities
(Net of Applicable Taxes) 162 132 422 555
---------- ---------- ---------- ----------
Net Income (Loss) $ 1,651 $ 793 $ 5,491 $ (136)
========== ========== ========== ==========
Basic and Diluted Earnings
Per Share:
Net Income (Loss) $ 0.27 $ 0.13 $ 0.90 $ (0.02)
========== ========== ========== ==========
Basic and Diluted Weighted
Average Shares of Common
Stock Outstanding 6,082,887 6,082,887 6,082,887 6,082,887
The Common Stock of International Shipholding Corporation is
traded on the New York Stock Exchange with the symbol ISH.
CONTACT: International Shipholding Corporation, New Orleans
Erik F. Johnsen, Chairman, 504-529-5461
or
Niels M. Johnsen, President, 212-943-4141