Exhibit 99.1
International Shipholding Corporation Reports Third Quarter Results
NEW ORLEANS--(BUSINESS WIRE)--Oct. 26, 2005--International
Shipholding Corporation (NYSE:ISH) today reported results for the
three month and nine month periods ended September 30, 2005. The
Company reported a net loss for the three months ended September 30,
2005 of $845,000, including a loss of $597,000 from discontinued
operations, as compared to a net income of $220,000 for the three
months ended September 30, 2004. For the first nine months of 2005,
net income was $7.221 million as compared to $4.945 million for the
same period of 2004. Net loss to common stockholders for the third
quarter was $1.445 million after dividends of $600,000 on the
Company's preferred stock. For the nine month period ended September
30, 2005, net income to common stockholders was $5.454 million after
dividends of $1.767 million on the Company's preferred stock.
The Company's operating results were impacted by Hurricanes
Katrina and Rita, which devastated Louisiana in general, and New
Orleans in particular. A forced evacuation of our New Orleans
headquarters caused dislocation of staff with associated expenses. As
a direct result of the hurricanes, our Mexican Rail/Ferry service was
forced to cease operations. It will resume limited service November 10
thereby also impacting fourth quarter results. The Forest Lines
service had vessel delays of fourteen days during the third quarter
that will further impact results in the fourth quarter while the
vessels are being properly spaced. These delays, disruptions, and
dislocations amount to about $1.8 million before tax for the quarter.
This loss has been offset by actions taken by the Company during the
quarter so that the after tax net loss approximates $1 million. The
Company's management and staff have reacted positively to these
significant events and deserve a well-earned "THANK YOU".
During the quarter, the Company sold the assets of its over the
road transportation company and has ceased those operations. The net
loss from those discontinued operations was $597,000 for the quarter.
During the quarter, the Company acquired another modern high
specification Pure Car/Truck Carrier which has been flagged under the
U.S. Flag and has been fixed on a long-term charter. After this
acquisition, the Company now operates five U.S. Flag Pure Car/Truck
Carriers.
The third quarter results of our U.S. Flag Coal Carrier were lower
than the comparable three month period in 2004 as the prime charterer
fulfilled its annual obligation earlier this year than last year,
which resulted in the vessel being placed in lay-up for twenty (20)
days awaiting other employment opportunities.
Depreciation expense was higher in the current quarter due to the
acquisition of two container vessels during the fourth quarter of
2004. The newly acquired container vessels are fixed on a medium term
time charter.
The aforementioned lower results during the quarter were partially
offset by improvements in our foreign flag TransAtlantic and U.S. Flag
LASH liner services as compared to the same periods of 2004 despite
delays caused by hurricanes. Both of these services had increased
volume of cargo shipped. In addition, the current quarter reflects the
positive results of the two container vessels.
During the quarter, the Company recorded a gain of $355,000 from
the sale of marketable securities.
The improvement in the first nine months of 2005 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 of which we owned a 26.1%
share. Additionally, interest expense decreased in the nine month
period of 2005 due to prepayments of debt including repurchase of some
of our 7 3/4% senior notes and regularly scheduled payments on
outstanding debt.
Our income taxes for the quarter and nine month period ended
September 30, 2005 were significantly lower than in the same periods
of 2004 as a result of the tonnage tax treatment of our U.S. Flag
international operations under the 2004 Jobs Creation Act. Our income
tax benefit on income (loss) from continuing operations before equity
in net income (loss) of unconsolidated entities was $1,095,000 and
$335,000, respectively, for the quarter and nine month period ended
September 30, 2005. Our income tax provision for the same periods
would have been $666,000 and $1,960,000 higher, respectively, if we
were still subject to pre-American Jobs Creation Act tax rates.
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):
INTERNATIONAL SHIPHOLDING CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(All Amounts in Thousands Except Share Data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
---------- ---------- ---------- ----------
Revenues $63,561 $67,582 $200,115 $196,088
Operating Expenses:
Voyage Expenses 53,703 57,893 161,742 160,745
Vessel and Barge
Depreciation 5,656 4,556 16,500 13,563
---------- ---------- ---------- ----------
Gross Voyage Profit 4,202 5,133 21,873 21,780
---------- ---------- ---------- ----------
Administrative and
General Expenses 3,846 3,441 12,184 10,149
Loss (Gain) on Sale of
Other Assets 29 - (584) 7
---------- ---------- ---------- ----------
Operating Income 327 1,692 10,273 11,624
---------- ---------- ---------- ----------
Interest and Other:
Interest Expense 2,105 2,574 6,860 7,920
(Gain) Loss on Sale
of Investment (355) - (355) 623
Investment Income (198) (183) (803) (430)
(Gain) Loss on Early
Extinguishment
of Debt - - (74) 46
---------- ---------- ---------- ----------
1,552 2,391 5,628 8,159
---------- ---------- ---------- ----------
(Loss) Income from Continuing
Operations Before Provision
(Benefit) for Income Taxes
and Equity in Net Income
of Unconsolidated
Entities (1,225) (699) 4,645 3,465
---------- ---------- ---------- ----------
(Benefit) Provision for
Income Taxes:
Current 58 (79) 175 131
Deferred (1,157) (126) (530) 1,242
State 4 7 20 21
---------- ---------- ---------- ----------
(1,095) (198) (335) 1,394
---------- ---------- ---------- ----------
Equity in Net (Loss)
Income of Unconsolidated
Entities (Net of
Applicable Taxes) (118) 869 3,342 3,030
---------- ---------- ---------- ----------
(Loss) Income from
Continuing Operations (248) 368 8,322 5,101
---------- ---------- ---------- ----------
Loss from Discontinued
Over-the-Road
Transportation
Operations (Net of
Applicable Taxes) (597) (148) (1,101) (156)
---------- ---------- ---------- ----------
Net (Loss) Income $(845) $220 $7,221 $4,945
---------- ---------- ---------- ----------
Preferred Stock Dividends 600 - 1,767 -
---------- ---------- ---------- ----------
Net (Loss) Income
Available to Common
Stockholders $(1,445) $220 $5,454 $4,945
========== ========== ========== ==========
Basic and Diluted
Earnings Per Common
Share:
Net (Loss) Income
Available to Common
Stockholders - Basic
Continuing Operations $(0.14) $0.06 $1.08 $0.84
Discontinued Operations (0.10) (0.02) (0.18) (0.03)
---------- ---------- ---------- ----------
$(0.24) $0.04 $0.90 $0.81
========== ========== ========== ==========
Net (Loss) Income
Available to Common
Stockholders - Diluted
Continuing Operations $(0.14) $0.06 $1.07 $0.84
Discontinued Operations (0.10) (0.02) (0.18) (0.03)
---------- ---------- ---------- ----------
$(0.24) $0.04 $0.89 $0.81
========== ========== ========== ==========
Weighted Average Shares
of Common Stock
Outstanding:
Basic 6,082,887 6,082,887 6,082,887 6,082,887
Diluted 6,117,594 6,088,036 6,109,864 6,092,536
CONTACT: International Shipholding Corporation
Erik F. Johnsen, 504-529-5461
or
Niels M. Johnsen, 212-943-4141