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Section 1: 8-K (FORM 8-K)

 

United States

Securities and Exchange Commission

Washington, D.C. 20549

                                                                   

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 OR 15(d) of the

Securities Exchange Act of 1934

 

                          March 7, 2017                         

Date of Report (Date of earliest event reported)

  

Overseas Shipholding Group, Inc.

(Exact Name of Registrant as Specified in Charter)

 

            1-6479-1            

Commission File Number

 

Delaware   13-2637623
(State or other jurisdiction of incorporation or organization)   (I.R.S. Employer Identification Number)

  

Two Harbour Place 

302 Knights Run Avenue, Suite 1200

             Tampa, Florida 33602             

 

(Address of Principal Executive Offices) (Zip Code)

 

 

Registrant's telephone number, including area code (813) 209-0600

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

 

Section 2 – Financial Information

 

Item 2.02Results of Operations and Financial Condition.

 

The following information, including the Exhibit to this Form 8-K, is being furnished pursuant to Item 2.02 – Results of Operations and Financial Condition of Form 8-K. This information is not deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 and is not incorporated by reference into any Securities Act of 1933 registration statements.

 

On March 7, 2017, Overseas Shipholding Group, Inc. issued a press release, a copy of which is attached hereto as Exhibit 99.1, announcing fourth quarter and full year 2016 earnings.

 

Section 9 - Financial Statements and Exhibits.

 

Item 9.01Financial Statements and Exhibits.

 

(d)          Exhibits

 

Pursuant to General Instruction B.2 of Form 8-K, the following exhibit is furnished with this Form 8-K.

 

Exhibit No. Description
99.1 Press Release dated March 7, 2017.

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  OVERSEAS SHIPHOLDING GROUP, INC.   
  (Registrant)
   
Date: March 7, 2017 By /s/ Christopher Wolf
   

Name:         Christopher Wolf

Title:           Senior Vice President and Chief Financial Officer

 

 

 

 

EXHIBIT INDEX

 

Exhibit No. Description
99.1 Press Release dated March 7, 2017.

 

 

(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit 99.1

 

 

 

OVERSEAS SHIPHOLDING GROUP REPORTS

FOURTH QUARTER AND FULL YEAR 2016 RESULTS

 

Tampa, FL – March 7, 2017 – Overseas Shipholding Group, Inc. (NYSE: OSG) (the “Company” or “OSG”) a provider of energy transportation services for crude oil and petroleum products in the U.S. Flag markets, today reported results for the fourth quarter and full year 2016.

 

Highlights

·Successfully completed the spin-off of its international business, International Seaways, Inc. (NYSE: INSW) on November 30, 2016. As a result, all results in this release reflect only continuing operations unless otherwise noted, and reflect the results of International Seaways as discontinued operations.
·Time charter equivalent (TCE) revenues(A) for the fourth quarter and full year 2016 were $109.6 million and $446.2 million, down 4% and 1%, respectively, compared with the same periods in 2015.
·Net income from continuing operations for the fourth quarter was $64.7 million, or $0.74 per diluted share, compared with a net loss of $34.2 million, or $0.35 per diluted share for the fourth quarter 2015.
·Net loss from continuing operations for the full year 2016 was $1.1 million, or $0.01 per diluted share, compared with net income of $80.6 million, or $0.83 per diluted share for the full year 2015.
·Fourth quarter and full year 2016 Adjusted EBITDA(B) was $49.9 million and $176.2 million, up 6% and 5%, respectively, from $47.2 million and $168.1 million in the same periods in 2015.
·Total cash(C) was $206.9 million as of December 31, 2016.
·Accelerated the payment of $19.0 million in principal amount of term loan in the fourth quarter.
·First quarter 2017, received a final decree and order approving a motion to close its bankruptcy case.

 

“We are pleased with our performance for the fourth quarter and full year 2016 despite challenging market conditions throughout most of the year,” said Sam Norton, OSG’s president and CEO. “We also successfully executed on our strategic goal of streamlining our operating structure and enhancing our focus by completing the spin-off of International Seaways.”

 

Mr. Norton continued, “Going forward, OSG will be a diversified U.S. Flag shipping company with a trusted operating franchise and a leading portfolio in the Jones Act market. Our unique position as the only operator of shuttle tankers in the U.S. Gulf Coast, the only licensed operator of lightering vessels in the Delaware Bay, and the only operator of tankers in the Maritime Security Program (“MSP”) helps provide stability against market volatility. We are well-positioned to build on the Company’s strengths, address future growth opportunities and drive shareholder value.”

 

Fourth Quarter 2016 Results

 

TCE revenues for the fourth quarter of 2016 were $109.6 million, a decrease of $5.0 million, or 4%, compared with the fourth quarter of 2015, primarily due to lower average daily rates earned, which accounted for a $9.4 million decrease in TCE revenues. This decrease was partially offset by a $2.9 million increase in Delaware Bay lightering revenues and a 52-day increase in revenue days for its Jones Act fleet, excluding its modern lightering ATBs, driven by fewer drydock and repair days resulting in a $1.5 million increase in TCE revenues. Shipping revenues were $114.8 million for the quarter, down 3% compared with the fourth quarter of 2015.

 

A, B, C Reconciliations of these non-GAAP financial measures are included in the financial tables attached to this press release starting on Page 8.

 

 

 

 

Operating income for the fourth quarter of 2016 was $11.5 million, compared to operating income of $20.9 million in the fourth quarter of 2015. The decrease reflects the impact of vessel impairment charges on one of the rebuilt ATBs and the decline in TCE revenues.

 

Net loss for the fourth quarter was $275.5 million, compared with net income of $9.3 million for the fourth quarter 2015. Net income from continuing operations for the fourth quarter was $64.7 million, or $0.74 per diluted share, compared with a net loss from continuing operations of $34.2 million, or $0.35 per diluted share for the fourth quarter 2015. The increase reflects the reversal of the deferred tax liability on the unremitted earnings of INSW in the current quarter compared with a provision in the fourth quarter of 2015, reductions in interest expense due to the Company’s significant debt reductions in the fourth quarter of 2015 and in 2016, partially offset by the vessel impairment recognized in the current quarter. In addition, net loss from continuing operations in the comparative fourth quarter 2015 period included $27.6 million in bond premium and consent fees and related professional fees paid on notes repurchased.

 

Adjusted EBITDA was $49.9 million for the quarter, an increase of $2.7 million compared with the fourth quarter of 2015, driven primarily by lower general and administrative expenses, partially offset by the decline in TCE revenues.

 

Full Year 2016 Results

 

TCE revenues for the full year 2016 were $446.2 million, a decrease of $2.9 million, or 1%, compared with the full year 2015, primarily due to lower average daily rates earned by its Jones Act fleet, which accounted for a $16.2 million decrease in TCE revenues. This decrease was largely offset by a 266-day increase in revenue days for its Jones Act fleet, excluding its modern lightering ATBs, driven by fewer drydock and repair days resulting in a $11.2 million increase in TCE revenues. Also, contributing to the offset was a $1.2 million increase in Delaware Bay lightering revenues and increased average daily rates by its MSP vessels, which accounted for a $0.9 million increase. Shipping revenues were $462.4 million for the full year 2016, down 1% compared with the full year 2015.

 

Operating loss for the full year 2016 was $31.5 million, compared to operating income of $84.2 million for the full year 2015.

 

Net loss for the full year 2016 was $293.6 million, compared with net income of $284.0 million for the full year 2015. Net loss from continuing operations for the full year 2016 was $1.1 million, or $0.01 per diluted share, compared with net income of $80.6 million, or $0.83 per diluted share for the full year 2015. The decrease reflects vessel impairments recognized in the second half of 2016, partially offset by the benefit from the reversal of the deferred tax liability on the unremitted earnings of INSW compared with a provision in 2015, and reductions in interest expense due to the Company’s significant debt reductions in the second half of 2015 and in 2016. In addition, net income from continuing operations in the comparative full year 2015 period included a one-time, non-cash income tax benefit of $150.1 million and $29.6 million in bond premium and consent fees and related professional fees paid on notes repurchased.

 

Adjusted EBITDA was $176.2 million for the full year 2016, an increase of $8.1 million compared with the full year 2015, driven primarily by lower general and administrative expenses, partially offset by the decline in TCE revenues.

 

Discontinued Operations

 

As noted above, OSG completed the separation of its business into two independent publicly-traded companies through the spin-off of its then wholly-owned subsidiary INSW on November 30, 2016. The spin-off separated OSG and INSW into two distinct businesses with separate management. OSG retained the U.S. Flag business and INSW holds entities and other assets and liabilities that formed OSG’s former International Flag business.  The spin-off transaction was in the form of a pro rata distribution of INSW’s common stock to our stockholders and warrant holders of record as of the close of business on November 18, 2016.

 

2 

 

 

In accordance with Accounting Standards Update (“ASU”) 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, the assets and liabilities and results of operations of INSW are reported as discontinued operations for all periods presented.

 

Net loss from discontinued operations for the fourth quarter was $340.2 million, or $3.89 per diluted share, compared with net income from discontinued operations of $43.5 million, or $0.45 per diluted share for the fourth quarter 2015. Net loss from discontinued operations for the full year 2016 was $292.6 million, or $3.24 per diluted share, compared with net income of $203.4 million, or $2.10 per diluted share for the full year 2015. Results from discontinued operations for the fourth quarter and full year 2016 reflect a charge of $332.6 million to reduce the carrying value of the INSW disposal group to its estimated fair value, calculated on a held for sale basis.

 

Conference Call

 

The Company will host a conference call to discuss its fourth quarter and full year 2016 results at 9:00 a.m. Eastern Time (“ET”) on Tuesday, March 7, 2017.

 

To access the call, participants should dial (888) 317-6016 for domestic callers and (412) 317-6016 for international callers. Please dial in ten minutes prior to the start of the call.

 

A live webcast of the conference call will be available from the Investor Relations section of the Company’s website at http://www.osg.com/

 

An audio replay of the conference call will be available starting at 11:00 a.m. ET on Tuesday, March 7, 2017 through 10:59 p.m. ET on Tuesday, March 14, 2017 by dialing (877) 344-7529 for domestic callers and (412) 317-0088 for international callers, and entering Access Code 10101778.

 

About Overseas Shipholding Group, Inc.

 

Overseas Shipholding Group, Inc. (NYSE: OSG) is a publicly traded tanker company providing energy transportation services for crude oil and petroleum products in the U.S. Flag markets. OSG is a major operator of tankers and ATBs in the Jones Act industry. OSG’s 24-vessel U.S. Flag fleet consists of eight ATBs, two lightering ATBs, three shuttle tankers, nine MR tankers, and two non-Jones Act MR tankers that participate in the U.S. MSP. OSG is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world’s most customer-focused marine transportation companies and is headquartered in Tampa, FL. More information is available at www.osg.com.

 

Forward-Looking Statements

 

This release contains forward-looking statements. In addition, the Company may make or approve certain statements in future filings with the Securities and Exchange Commission (SEC), in press releases, or in oral or written presentations by representatives of the Company. All statements other than statements of historical facts should be considered forward-looking statements. These matters or statements may relate to the Company’s prospects, its ability to retain and effectively integrate new members of management and the effect of the Company’s spin-off of International Seaways, Inc. Forward-looking statements are based the Company’s current plans, estimates and projections, and are subject to change based on a number of factors. Investors should carefully consider the risk factors outlined in more detail in the Annual Report on Form 10-K for OSG and in similar sections of other filings made by the Company with the SEC from time to time. The Company assumes no obligation to update or revise any forward-looking statements. Forward-looking statements and written and oral forward looking statements attributable to the Company or its representatives after the date of this release are qualified in their entirety by the cautionary statements contained in this paragraph and in other reports previously or hereafter filed by the Company with the SEC.

 

Investor Relations & Media Contact:

Brian Tanner, Overseas Shipholding Group, Inc.

(212) 578-1645

btanner@osg.com

 

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Consolidated Statements of Operations

($ in thousands, except per share amounts)

 

   Three Months Ended December 31,   Fiscal Year Ended December 31, 
   2016   2015   2016   2015 
Shipping Revenues:  (unaudited)   (unaudited)         
Time and bareboat charter revenues   85,539    96,644    372,149    385,206 
Voyage charter revenues   29,237    22,110    90,271    81,666 
Total Shipping Revenues   114,776    118,754    462,420    466,872 
Operating Expenses:                    
Voyage expenses   5,219    4,194    16,260    17,814 
Vessel expenses   33,343    34,757    140,696    138,179 
Charter hire expenses   23,138    23,293    91,947    91,875 
Depreciation and amortization    20,862    22,991    89,563    76,851 
General and administrative   7,013    16,335    41,608    61,540 
Severance costs   10,758    (5)   12,996    - 
Loss on disposal of vessels and other property, including impairments   6,623    61    104,532    207 
Total Operating Expenses   106,956    101,626    497,602    386,466 
Income/(Loss) from vessel operations   7,821    17,128    (35,182)   80,406 
Equity in income of affiliated companies   3,656    3,789    3,642    3,783 
Operating income/(Loss)   11,476    20,917    (31,540)   84,189 
Other Expense   (295)   (24,333)   (2,391)   (26,239)
Income/(Loss) before interest expense, reorganization items and income taxes and income taxes   11,181    (3,416)   (33,931)   57,950 
Interest expense   (9,765)   (15,709)   (43,151)   (70,365)
Income/(loss) before reorganization items and income taxes and income taxes   1,416    (19,125)   (77,082)   (12,415)
Reorganization items, net   (393)   (1,708)   10,925    (8,052)
Income/(loss) from Continuing Operations before income taxes   1,023    (20,833)   (66,157)   (20,467)
Income tax benefit/(provision) from Continuing Operations   63,653    (13,402)   65,098    101,032 
Net Income/(Loss) from Continuing Operations   64,678    (34,235)   (1,059)   80,565 
Net Income/(loss) from Discontinued Operations   (340,153)   43,502    (292,555)   203,395 
Net Income/(Loss)  $(275,475)  $9,267   $(293,614)  $283,960 
                     
Weighted Average Number of Common Shares Outstanding:                    
Basic - Class A   87,497,273    95,599,213    90,949,577    95,584,559 
Diluted - Class A   87,721,704    95,599,213    90,949,577    95,629,090 
Basic and Diluted - Class B   -    1,319,973    533,758    1,320,337 
                     

Per Share Amounts from Continuing Operations:

                    
Basic and diluted net income/(loss) – Class A  $0.74   $(0.35)  $(0.01)  $0.83 
Basic and diluted net income/(loss) – Class B   -   $(0.35)  $(0.11)  $0.83 
Per Share Amounts from Discontinued Operations:                    
Basic and diluted net income/(loss) – Class A  $(3.89)  $0.45   $(3.24)  $2.10 
Basic and diluted net income/(loss) – Class B   -   $0.45   $4.54   $2.10 

 

On June 2, 2016 the Board approved the Reverse Split Amendment to the Company’s Amended and Restated Certificate of Incorporation. The Reverse Split Amendment effected the Reverse Split. The Reverse Split Amendment became effective on June 13, 2016. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) ASC 260, Earnings Per Share, the Company adjusted the computations of basic and diluted earnings per share retroactively for all periods presented to reflect that change in its capital structure.

 

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Consolidated Balance Sheets

($ in thousands)

 

   December 31,   December 31, 
   2016   2015 
         
ASSETS          
Current Assets:          
Cash and cash equivalents  $191,089   $193,978 
Restricted cash   7,272    10,583 
Voyage receivables   23,456    6,662 
Income tax recoverable   877    1,200 
Receivable from INSW   683    - 
Other receivables   2,696    3,195 
Inventories, prepaid expenses and other current assets   12,243    11,615 
Current assets of discontinued operations   -    396,698 
Total Current Assets   238,316    623,931 
Restricted cash   8,572    - 
Vessels and other property, less accumulated depreciation   684,468    844,447 
Deferred drydock expenditures, net   31,172    58,166 
Total Vessels, Deferred Drydock and Other Property   715,640    902,613 
Investments in and advances to affiliated companies   3,694    3,827 
Intangible assets, less accumulated amortization   45,617    50,217 
Other assets   18,658    16,608 
Non-current assets of discontinued operations   -    1,633,214 
Total Assets  $1,030,497   $3,230,410 
           
LIABILITIES AND EQUITY          
Current Liabilities:          
Accounts payable, accrued expenses and other current liabilities  $57,222   $60,450 
Income taxes payable   306    50 
Current installments of long-term debt   -    56,755 
Current liabilities of discontinued operations   -    37,030 
Total Current Liabilities   57,528    154,285 
Reserve for uncertain tax positions   3,129    2,520 
Long-term debt   525,082    634,286 
Deferred income taxes   141,457    208,195 
Other liabilities   48,969    52,889 
Non-current liabilities of discontinued operations   -    597,747 
Total Liabilities   776,165    1,649,922 
           
Commitments and contingencies          
           
Equity:          
           
Total Equity   254,332    1,580,488 
Total Liabilities and Equity  $1,030,497   $3,230,410 

 

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Consolidated Statements of Cash Flows

($ in thousands)

 

   Fiscal Year Ended December 31, 
   2016   2015 
         
Cash Flows from Operating Activities:          
Net income/(loss)  $(293,614)  $283,960 
Less: Net income/(loss) from discontinued operations   (295,555)   203,395 
Net income/(loss) from continuing operations   (1,059)   80,565 
Items included in net income/(loss) from continuing operations not affecting cash flows:          
Depreciation and amortization   89,563    76,851 
Loss on write-down of vessels   104,405    - 
Amortization of debt discount and other deferred financing costs   6,005    5,154 
Compensation relating to restricted stock/stock unit and stock option grants   7,441    3,580 
Deferred income tax benefit   (67,394)   (69,564)
Undistributed earnings of affiliated companies   132    (399)
Deferred payment obligations on charters-in   -    590 
Reorganization items, non-cash   5,198    (50)
Other – net   2,268    1,971 
Items included in net income/(loss) related to investing and financing activities:  
          
Discount on repurchase of debt   (3,415)   - 
Loss on disposal of vessels and other property – net   127    207 
Distributions from INSW   202,000    200,000 
Payments for drydocking   (6,844)   (41,323)
Bankruptcy and IRS claim payments   (7,136)   (8,343)
Deferred financing costs paid for loan modification   -    (4,220)
Changes in other operating assets and liabilities   (2,431)   31,314 
Net cash provided by operating activities   328,860    276,333 
Cash Flows from Investing Activities:          
Change in restricted cash   (5,261)   42,502 
Expenditures for vessels and vessel improvements   -    (53)
Expenditures for other property   (666)   (75)
Other – net   -    (1)
Net cash provided by/(used in) investing activities   (5,927)   42,373 

Cash Flows from Financing Activities: 

          
Cash dividends paid   (31,910)   - 
Payments on debt   (54,345)   (6,030)
Extinguishment of debt   (120,224)   (326,051)
Repurchases of common stock and common stock warrants   (119,343)   (3,633)
Net cash used in financing activities   (325,822)   (335,714)
Net decrease in cash and cash equivalents   (2,889)   (17,008)
Cash and cash equivalents at beginning of year   193,978    210,986 
Cash and cash equivalents at end of period  $191,089   $193,978 
           
Cash flows from discontinued operations:          
Cash flows provided by operating activities  $111,768   $222,739 
Cash flows provided by investing activities   25,202    114,163 
Cash flows used in financing activities   (355,687)   (206,284)
Net (decrease)/increase in cash and cash equivalents from discontinued operations  $(218,717)  $130,618 

 

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Spot and Fixed TCE Rates Achieved and Revenue Days

 

The following tables provides a breakdown of TCE rates achieved for spot and fixed charters and the related revenue days for the three months and fiscal year ended December 31, 2016 and the comparable periods of 2015. Revenue days in the quarter ended December 31, 2016 totaled 2,167 compared with 2,098 in the prior year quarter. Revenue days in the fiscal year ended December 31, 2016 totaled 8,658 compared with 8,311 in the prior year. A summary fleet list by vessel class can be found later in this press release.

 

   Three Months Ended December 31, 2016   Three Months Ended December 31, 2015 
   Spot   Fixed   Total   Spot   Fixed   Total 
U.S. Flag                              
Jones Act Handysize Product Carriers                              
Average TCE Rate  $29,742   $65,060        $   $64,193      
Number of Revenue Days   92    972    1,064        1,082    1,082 
Non-Jones Act Handysize Product Carriers                              
Average TCE Rate  $24,311   $9,628        $34,704   $16,630      
Number of Revenue Days   147    37    184    146    38    184 
ATBs                              
Average TCE Rate  $26,473   $32,029        $   $38,216      
Number of Revenue Days   83    652    735        665    665 
Lightering                              
Average TCE Rate  $91,052   $        $83,320   $      
Number of Revenue Days   184        184    167        167 
Total U.S. Flag Revenue Days   506    1,661    2,167    313    1,785    2,098 

 

   Fiscal Year Ended December 31, 2016   Fiscal Year Ended December 31, 2015 
   Spot   Fixed   Total   Spot   Fixed   Total 
U.S. Flag                              
Jones Act Handysize Product Carriers                              
Average TCE Rate  $27,989   $64,919        $   $64,350      
Number of Revenue Days   208    4,103    4,311        4,260    4,260 
Non-Jones Act Handysize Product Carriers                              
Average TCE Rate  $31,422   $16,141        $29,453   $15,958      
Number of Revenue Days   544    186    730    535    164    699 
ATBs                              
Average TCE Rate  $26,473   $35,269        $   $38,605      
Number of Revenue Days   83    2,802    2,885        2,700    2,700 
Lightering                              
Average TCE Rate  $72,271   $        $79,209   $      
Number of Revenue Days   732        732    652        652 
Total U.S. Flag Revenue Days   1,567    7,091    8,658    1,187    7,124    8,311 

 

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Fleet Information

 

As of December 31, 2016, OSG’s owned and operated fleet totaled 24 U.S. Flag vessels (14 vessels owned and 10 chartered-in). Vessels chartered-in are Bareboat Charters. The Company’s fleet list excludes vessels chartered-in where the duration of the charter was one year or less at inception.

 

   Vessels Owned   Vessels Chartered-in   Total at December 31, 2016 
Vessel Type  Number   Weighted by
Ownership
   Number   Weighted by
Ownership
   Total Vessels   Vessels
Weighted by
Ownership
   Total Dwt 
Operating Fleet                                   
Handysize Product Carriers 1   4    4.0    10    10.0    14    14.0    664,490 
Clean ATBs   8    8.0            8    8.0    226,064 
Lightering ATBs   2    2.0            2    2.0    91,112 
Total U.S. Flag Operating Fleet   14    14.0    10    10.0    24    24.0    981,666 

 

1 Includes two owned shuttle tankers, one chartered in shuttle tanker and two owned U.S. Flag Product Carriers that trade internationally.

 

Reconciliation to Non-GAAP Financial Information

 

The Company believes that, in addition to conventional measures prepared in accordance with GAAP, the following non-GAAP measures may provide certain investors with additional information that will better enable them to evaluate the Company’s performance. Accordingly, these non-GAAP measures are intended to provide supplemental information, and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP.

 

(A) Time Charter Equivalent (TCE) Revenues

 

Consistent with general practice in the shipping industry, the Company uses TCE revenues, which represents shipping revenues less voyage expenses, as a measure to compare revenue generated from a voyage charter to revenue generated from a time charter. Time charter equivalent revenues, a non-GAAP measure, provides additional meaningful information in conjunction with shipping revenues, the most directly comparable GAAP measure, because it assists Company management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. Reconciliation of TCE revenues of the segments to shipping revenues as reported in the consolidated statements of operations follow:

 

  

Three Months Ended December 31, 

  

Fiscal Year Ended December 31, 

 
($ in thousands)  2016   2015   2016   2015 
TCE revenues  $109,557   $114,560   $446,160   $449,058 
Add: Voyage Expenses   5,219    4,194    16,260    17,814 
Shipping revenues  $114,776   $118,754   $462,420   $466,872 

 

 

(B) EBITDA and Adjusted EBITDA

 

EBITDA represents net (loss)/income from continuing operations before interest expense, income taxes and depreciation and amortization expense. Adjusted EBITDA consists of EBITDA adjusted for the impact of certain items that we do not consider indicative of our ongoing operating performance. EBITDA and Adjusted EBITDA do not represent, and should not be a substitute for, net (loss)/income or cash flows from operations as determined in accordance with GAAP. Some of the limitations are: (i) EBITDA and Adjusted EBITDA do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments; (ii) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs; and (iii) EBITDA and Adjusted EBITDA do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debt. While EBITDA and Adjusted EBITDA are frequently used as a measure of operating results and performance, neither of them is necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. The following table reconciles net income/(loss) from continuing operations as reflected in the consolidated statements of operations, to EBITDA and Adjusted EBITDA:

 

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   Three Months Ended December 31,   Fiscal Year Ended December 31, 
($ in thousands)  2016   2015   2016   2015 
Net Income/(loss) from continuing operations  $64,678   $(34,235)  $(1,059)  $80,565 
Income tax expense/(benefit) from continuing operations   (63,653)   13,402    (65,098)   (101,032)
Interest expense   9,765    15,709    43,151    70,365 
Depreciation and amortization   20,862    22,991    89,563    76,851 
EBITDA   31,652    17,867    66,557    126,749 
Severance costs   10,758    (5)   12,996    - 
Loss on disposal of vessels and other property, including impairments   6,623    61    104,532    207 
Loss on repurchase of debt   456    24,447    2,988    26,516 
Other costs associated with repurchase of debt   -    3,099    77    3,099 
Write-off of registration statement costs   -    -    -    3,493 
Reorganization items, net   393    1,708    (10,925)   8,052 
Adjusted EBITDA  $49,882   $47,177   $176,225   $168,116 

 

(C) Total Cash

 

($ in thousands) 

December 31,

2016

  

December 31,

2015

 
         
Cash and cash equivalents  $191,089   $193,978 
Restricted cash - current   7,272    10,583 
Restricted cash – non-current   8,572    - 
Total Cash  $206,933   $204,561 

 

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