Exhibit 99.1
International Shipholding Corporation Reports Second Quarter Results
NEW ORLEANS, La.--(BUSINESS WIRE)--July 27, 2005--International
Shipholding Corporation (NYSE: ISH) today reported results for the
three month and six month periods ended June 30, 2005. Net income for
the three months ended June 30, 2005 was $3.973 million as compared to
$1.828 million for the three months ended June 30, 2004. For the first
six months of 2005, net income was $8.066 million as compared to
$4.725 million for the same period of 2004. Net income available to
common stockholders for the second quarter and six month period ended
June 30, 2005 was $3.373 million and $6.899 million, respectively,
after dividends on the Company's preferred stock issue.
Improvement in the current quarter resulted primarily from the
results of our two container vessels, acquired in December of 2004 and
subsequently chartered-out; full utilization of our U.S. Flag Coal
Carrier which experienced out of service time in the second quarter of
2004; higher volume of supplemental cargoes on our U.S. flag
PureCar/Truck Carriers; a gain from a sale of some of our LASH barges
of $540,000; and a lower effective tax rate under the Jobs Creation
Act (as discussed below).
The improvements in the quarter were partially offset by lower
results from our foreign flag TransAtlantic LASH and our Mexican
Rail/Ferry services. The foreign flag LASH service experienced an
increase in operating costs and weather delays while the Mexican
Rail/Ferry service was temporarily disrupted in the quarter because of
delays caused while moving the operations from Mobile, Alabama, to New
Orleans, Louisiana.
Depreciation expense was higher in the current quarter due to the
addition of the two container vessels. Administrative and general
expenses were higher in the current quarter primarily due to wage and
benefit increases and higher fees for professional services.
In addition to the aforementioned, the improved results for the
six month period included a before tax gain of $1.225 million from our
share on the sale of a cement carrier vessel in the first quarter of
2005.
As a result of the tonnage tax treatment of our U.S. flag
international operations under the 2004 American Jobs Creation Act,
our effective federal tax rate on earnings before equity in net income
of unconsolidated entities was 3.9% and 7.8%, respectively, for the
quarter and six month period ended June 30, 2005. Our comparable 2004
quarter and six month periods reflected effective federal tax rates of
38.9% and 37.7%, respectively.
Net income available to common stockholders for the 2005 quarter
and six month periods is after dividends on our $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.
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 Six Months Ended
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
---------- ---------- ---------- ----------
Revenues $ 68,842 $ 64,843 $ 138,630 $ 130,686
Operating Expenses:
Voyage Expenses 54,884 52,291 110,232 103,761
Vessel and Barge
Depreciation 5,601 4,696 11,213 9,323
---------- ---------- ---------- ----------
Gross Voyage Profit 8,357 7,856 17,185 17,602
---------- ---------- ---------- ----------
Administrative and
General Expenses 4,248 3,922 8,637 7,773
(Gain) Loss on Sale of
Other Assets (559) - (590) 7
---------- ---------- ---------- ----------
Operating Income 4,668 3,934 9,138 9,822
---------- ---------- ---------- ----------
Interest and Other:
Interest Expense 2,270 2,626 4,813 5,348
Loss on Sale of
Investment - - - 623
Investment Income (360) (161) (645) (329)
(Gain) Loss on
Early Extinguishment
of Debt (74) 15 (74) 46
---------- ---------- ---------- ----------
1,836 2,480 4,094 5,688
---------- ---------- ---------- ----------
Income Before Provision
for Income Taxes and
Equity in Net Income of
Unconsolidated Entities 2,832 1,454 5,044 4,134
---------- ---------- ---------- ----------
Provision for Income
Taxes 113 575 411 1,570
---------- ---------- ---------- ----------
Equity in Net Income of
Unconsolidated
Entities (Net of
Applicable Taxes) 1,254 949 3,433 2,161
---------- ---------- ---------- ----------
Net Income $ 3,973 $ 1,828 $ 8,066 $ 4,725
========== ========== ========== ==========
Preferred Stock
Dividends 600 - 1,167 -
---------- ---------- ---------- ----------
Net Income Available to
Common Stockholders $ 3,373 $ 1,828 $ 6,899 $ 4,725
========== ========== ========== ==========
Basic and Diluted
Earnings Per Common
Share:
Net Income
Available to
Common
Stockholders
$ 0.55 $ 0.30 $ 1.13 $ 0.78
========== ========== ========== ==========
Weighted Average Shares
of Common Stock
Outstanding:
Basic 6,082,887 6,082,887 6,082,887 6,082,887
Diluted 6,100,091 6,097,164 6,105,999 6,094,813
CONTACT: International Shipholding Corporation
Erik F. Johnsen, 504-529-5461
or
Niels M. Johnsen, 212-943-4141