Exhibit 99.1
International Shipholding Corporation Reports First Quarter Results
NEW ORLEANS--(BUSINESS WIRE)--April 27, 2005--International Shipholding
Corporation (NYSE:ISH) today reported results for the quarter ended
March 31, 2005. Net income for the first quarter of 2005 was $4.093
million as compared to $2.897 million for the first quarter of 2004.
Net income available to common stockholders for the first quarter of
2005 was $3.526 million after preferred stock dividends on the
Company's recently completed preferred stock issue as discussed below.
Improvement in the current quarter resulted in part from an
increase in net income from our investments in unconsolidated
entities. The increase stemmed from our share of a gain on the sale of
a cement carrier vessel which before tax was $1.225 million.
Additionally, the current quarter reflects positive results from the
operation of two used container vessels which, as previously reported,
were purchased during December 2004.
The aforementioned improvements were partially offset by lower
results from our U.S. flag LASH liner service. Although cargo volumes
remain strong in this service, the results were negatively impacted by
higher operating expenses primarily attributable to increased fuel
costs.
Depreciation expense was higher in the first quarter of 2005 as a
result of the aforementioned acquisition of two used container vessels
made during the fourth quarter of 2004. Administrative and general
expenses were higher in the current quarter primarily due to normal
wage and benefit increases and higher legal fees.
In the first quarter of 2004, we experienced a loss of $623,000 on
the sale of marketable securities as a result of our decision to
redirect the management of our captive insurance company's investment
portfolio.
We previously reported that in December 2004 we made an election
under the Jobs Creation Act ("Act") to have our U.S. flag operations
(other than those of two ineligible vessels used exclusively in United
States coastwise commerce) taxed under the new "tonnage tax" regime.
As a result of that election, and benefits provided to our foreign
operations under the Act, our effective tax rate on earnings before
equity in net income of unconsolidated entities is 13.5% in the first
quarter of 2005 as compared to 37% in the comparable quarter of 2004.
The first quarter of 2005 includes dividends on preferred stock.
On January 6, 2005, we announced the completion of our public offering
of $40 million of 6% Convertible Exchangeable Preferred Stock. The
preferred stock, which has a liquidation preference of $50 per share,
accrues cumulative quarterly cash dividends from the date of issuance
at a rate of 6% per annum. The preferred stock is initially
convertible into two million shares of our common stock, equivalent to
an initial conversion price of $20.00 per share of our common stock
and reflecting a 34% conversion premium to the $14.90 per share
closing price of our common stock on the New York Stock Exchange on
December 29, 2004.
Certain statements made in this release on our behalf 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. We caution readers that
certain important factors have affected and may affect in the future
our 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 our behalf. A
description of certain of these important factors is contained in our
Form 10-K filed with the Securities and Exchange Commission for the
year ended December 31, 2004.
The common stock of International Shipholding Corporation is
traded on the New York Stock Exchange with the symbol ISH. The
Company's preferred stock is traded on the NYSE with the symbol "ISH
Pr".
Unaudited results for the period indicated along with prior year
results are (in thousands except share and per share data):
Three Months Ended
March 31, March 31,
2005 2004
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Revenues $ 69,788 $ 65,843
Operating Expenses:
Voyage Expenses 55,348 51,470
Vessel and Barge Depreciation 5,612 4,627
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Gross Voyage Profit 8,828 9,746
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Administrative and General Expenses 4,389 3,851
(Gain) Loss on Sale of Other Assets (31) 7
----------- -----------
Operating Income 4,470 5,888
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Interest and Other:
Interest Expense 2,543 2,722
Loss on Sale of Investment - 623
Investment Income (285) (168)
Loss on Early Extinguishment of Debt - 31
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2,258 3,208
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Income Before Provision for Income Taxes and
Equity in Net Income of Unconsolidated
Entities 2,212 2,680
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Provision for Income Taxes 298 995
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Equity in Net Income of Unconsolidated
Entities (Net of Applicable Taxes) 2,179 1,212
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Net Income $ 4,093 $ 2,897
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Preferred Stock Dividends 567 -
----------- -----------
Net Income Available to Common Stockholders $ 3,526 $ 2,897
=========== ===========
Basic and Diluted Earnings Per Common Share:
Net Income Available to Common
Stockholders $ 0.58 $ 0.48
=========== ===========
Weighted Average Shares of Common Stock
Outstanding:
Basic 6,082,887 6,082,887
Diluted 6,111,906 6,092,666
CONTACT: International Shipholding Corporation
Erik F. Johnsen, 504-529-5461
or
Niels M. Johnsen, 212-943-4141