Exhibit 99.1
International Shipholding Corporation
Reports First Quarter Results
NEW ORLEANS--(BUSINESS WIRE)--April 26, 2006--International
Shipholding Corporation (NYSE:ISH) today reported results for the
quarter ended March 31, 2006. Net income for the first quarter of 2006
was $2.086 million as compared to $4.093 million for the first quarter
of 2005. Net income available to common stockholders for the first
quarter of 2006 was $1.486 million after dividends on our preferred
stock. The lower 2006 results over the comparable 2005 period are
primarily the result of our U.S. flag Coal Carrier being out of
service for the entire quarter undergoing repairs and a special survey
drydocking as well as the first quarter of 2005 including a gain of
$1.225 million on the sale of a cement carrier vessel owned by one of
our unconsolidated entities. After completion of repairs, drydocking
and repositioning in June, our U.S. flag Coal Carrier will continue
the vessel's firm time charter employment.
During the quarter, the results of our liner services showed some
improvement over the comparable quarterly period as did our time
charter segment, excluding the aforementioned results of the U.S. flag
Coal Carrier, reflecting the addition of our fifth U.S. flag Pure
Car/Truck carrier.
The Company's Contract of Affreightment segment results were
satisfactory for the quarter, while our Mexican Rail/Ferry segment
which, even though it experienced limited service in the beginning of
the quarter, reported improved results from an increase in volume and
higher rates.
Depreciation expense was higher in the first quarter of 2006 as a
result of capital improvements on one of our LASH vessels and the two
vessels used in our Rail/Ferry service.
Interest expense increased as a result of the financing on the
Company's U.S. flag Pure Car/Truck carrier placed in service during
the fourth quarter of 2005 and our investment in our Rail/Ferry
terminal in the U.S. Gulf.
During the quarter we experienced gains of $301,000 from the sale
of marketable securities held in the investment portfolio of our
captive insurance company.
Our income tax benefit for the first quarter of 2006 reflects the
net losses in the quarter of our U.S. flag Coal Carrier and Mexican
Rail/Ferry service at the statutory rate offset slightly by the
provisions on the results of our international U.S. flag operations
taxed at the lower tonnage tax rate.
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, 2005.
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,
2006 2005
---------- ----------
Revenues $ 68,330 $ 68,823
Operating Expenses:
Voyage Expenses 55,863 54,261
Vessel and Barge Depreciation 5,729 5,423
---------- ----------
Gross Voyage Profit 6,738 9,139
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Administrative and General Expenses 4,266 4,216
(Gain) Loss on Sale of Other Assets (5) (54)
---------- ----------
Operating Income 2,477 4,977
---------- ----------
Interest and Other:
Interest Expense 2,868 2,543
Gain on Sale of Investment (301) -
Investment Income (456) (285)
---------- ----------
2,111 2,258
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Income from Continuing Operations Before
(Benefit) Provision for Income Taxes and
Equity in Net Income of Unconsolidated
Entities 366 2,719
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(Benefit) Provision for Income Taxes (736) 475
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Equity in Net Income of Unconsolidated Entities
(Net of Applicable Taxes) 984 2,179
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Income from Continuing Operations 2,086 4,423
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Loss from Discontinued Operations
(Net of Applicable Taxes) - (330)
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Net Income
$ 2,086 $ 4,093
========== ==========
Preferred Stock Dividends 600 567
---------- ----------
Net Income Available to Common Stockholders $ 1,486 $ 3,526
========== ==========
Basic and Diluted Earnings Per Common Share:
Net Income Available to Common Stockholders
Continuing Operations $ 0.24 $ 0.63
Discontinued Operations - (0.05)
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$ 0.24 $ 0.58
========== ==========
Weighted Average Shares of Common Stock
Outstanding:
Basic 6,106,418 6,082,887
Diluted 6,132,584 6,111,906
CONTACT: International Shipholding Corporation
Erik F. Johnsen, 504-529-5461
or
Niels M. Johnsen, 212-943-4141