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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

 

August 8, 2019

 

Date of Report (Date of earliest event reported)

  

International Seaways, Inc.

 

(Exact Name of Registrant as Specified in Charter)

  

1-37836-1

 

Commission File Number

 

Marshall Islands   98-0467117
(State or other jurisdiction of incorporation or organization)   (I.R.S. Employer Identification Number)

   

600 Third Avenue, 39th Floor 

New York, New York  10016

 

(Address of Principal Executive Offices) (Zip Code)

   

Registrant's telephone number, including area code (212) 578-1600

  

 

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))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company x

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. x

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Symbol

Name of each exchange on which registered

Common Stock (no par value) INSW New York Stock Exchange
8.5% Senior Notes due 2023 INSW - PA New York Stock Exchange

 

 

 

 

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 August 8, 2019, International Seaways, Inc. issued a press release, a copy of which is attached hereto as Exhibit 99.1, announcing second quarter 2019 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 August 8, 2019.

 

 

 

 

 

 

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.

 

  INTERNATIONAL SEAWAYS, INC.
  (Registrant)
   
   
Date: August 8, 2019 By        /s/ James D. Small III
    Name: James D. Small III
    Title: Chief Administrative Officer, Senior Vice President,
Secretary and General Counsel

 

 


 

 

 

 

EXHIBIT INDEX

 

Exhibit No. Description
99.1 Press Release dated August 8, 2019.

 

 

 

 

 

(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit 99.1

 

 

 

INTERNATIONAL SEAWAYS REPORTS

SECOND QUARTER 2019 RESULTS

 

New York, NY – August 8, 2019 – International Seaways, Inc. (NYSE: INSW) (the “Company” or “INSW”), one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets, today reported results for the second quarter 2019.

 

Highlights

·Net loss for the second quarter was $16.5 million, or $0.57 per share, compared to a net loss of $18.8 million, or $0.65 per share, in the second quarter of 2018. Net loss for the quarter reflects the impact of a loss on vessel sales of $1.6 million. Net loss excluding these items was $15.0 million, or $0.51 per share.
·Time charter equivalent (TCE) revenues(A) for the second quarter were $62.5 million, compared to $50.0 million in the second quarter of 2018.
·Adjusted EBITDA(B) for the second quarter was $21.3 million, compared to $9.2 million in the same period of 2018.
·Cash(C) was $150.3 million as of June 30, 2019; total liquidity was $200.3 million, including $50.0 million undrawn revolver, compared to cash of $117.6 million and total liquidity of $167.6 million as of December 31, 2018.
·Sold a 2004-built MR and agreed to sell another 2004-built MR during the quarter, which was delivered to the buyer in July.
·Made a prepayment of $10 million in July on the 2017 Term Loan Facility using restricted cash set aside from the proceeds of vessel sales.
·Chartered-in a 2010-built Panamax for six months.
·Subsequent to the end of the quarter, exercised an option to extend the charter-in on a 2006-built MR for an additional 6-month period expiring in February 2020, and agreed to charter-in a 2006-built Panamax for a two-year period with no options to extend.

 

“During the second quarter, our fleet of crude and product tankers performed in-line with our expectations, as increased refinery maintenance ahead of the IMO 2020 low sulfur regulations contributed to rates that were lower than the strong levels reached in the first quarter of 2019 but higher than the comparable period last year,” said Lois K. Zabrocky, International Seaways’ president and CEO. “We are pleased to have further enhanced our balance sheet in the second quarter, as we increased total liquidity to $200.3 million, up $32.7 million year to date. With our highest cash and liquidity position since inception, we have also taken steps to reduce debt, consistent with our disciplined and balanced capital allocation strategy.”

 

Ms. Zabrocky continued, “Underlying tanker fundamentals remain supportive of a recovering market during a time when we continue to expect incremental demand from IMO 2020 to positively affect the product and crude tanker rate environment in the second half of 2019 and into 2020. With our modern, sizeable fleet and significant operating leverage, we are well positioned to capitalize on strengthening market conditions. As we focus on enhancing long-term shareholder value, we also maintain a commitment to ESG principles, accretive capital allocation and provision of safe, reliable service to leading energy companies.”

 

 
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Second Quarter 2019 Results

Net loss for the second quarter of 2019 was $16.5 million, or $0.57 per diluted share, compared to a net loss of $18.8 million, or $0.65 per diluted share, in the second quarter of 2018. The decreased loss in the second quarter of 2019 primarily reflects higher TCE revenues, a reduction in third-party debt modification fees and an increase in other income principally because the second quarter of 2018 included a loss on extinguishment of debt and a write-off of deferred finance costs aggregating $3.6 million. These positive factors were partially offset by a loss on disposal of vessels and other property, net of impairments of $1.6 million, compared to a gain on disposal of vessels in the second quarter of 2018 of $6.7 million, an increase in charter hire expenses principally attributable to increased activity in the Company’s Lightering business, and increased interest expense. Net loss for the first half of 2019 was $5.6 million, or $0.19 per share, compared to a net loss of $48.1 million, or $1.65 per share, for the first half of 2018.

 

Consolidated TCE revenues for the second quarter of 2019 were $62.5 million, compared to $50.0 million in the second quarter of 2018. Shipping revenues for the second quarter of 2019 were $69.0 million, compared to $56.9 million in the second quarter of 2018. Consolidated TCE revenues for the first half of 2019 were $156.5 million, compared to $98.8 million for the first half of last year. Shipping revenues for the first half of 2019 were $170.9 million compared to $108.9 million in the prior year period.

 

The increase in interest expense in the second quarter of 2019 compared to the second quarter of 2018 was primarily attributable to the impact of debt facilities entered into by the Company during the second quarter of 2018 in connection with the completion of the acquisition of six VLCCs.

 

Adjusted EBITDA was $21.3 million for the quarter, compared to $9.2 million in the second quarter of 2018. Adjusted EBITDA was $68.6 million for the first half of 2019, compared to $15.7 million for the first half of 2018.

 

Crude Tankers

TCE revenues for the Crude Tankers segment were $45.7 million for the current quarter compared to $34.4 million in the second quarter of 2018. This increase primarily resulted from the impact of higher average rates in the VLCC, Suezmax and Aframax sectors, with spots rates climbing to approximately $20,000, $20,800, and $13,500 per day, respectively, aggregating approximately $9.3 million. The impact of increased revenue days in the VLCC sector accounted for $2.6 million and reflected the acquisitions of one 2015-built and five 2016-built VLCCs, which were delivered to the Company in June 2018, partially offset by the disposals of one 2000-built and one 2001-built VLCC in 2018, and 91 more drydock days in the current quarter. The balance of the increase in TCE revenues was substantially attributable to higher activity in the Company’s Lightering business in the 2019 quarter compared with the second quarter of 2018, which accounted for $3.1 million in TCE revenues. Partially offsetting the TCE revenue increases was a $3.8 million decrease in TCE revenue due to a 319-day reduction in Aframax and Panamax revenue days, which was driven primarily by the sale of two 2001-built Aframaxes and a 2002-built Panamax between May and October 2018. Shipping revenues for the Crude Tankers segment were $52.1 million for the second quarter of 2019 compared to $41.2 million in the second quarter of 2018. TCE revenues for the Crude Tankers segment were $118.2 million for the first half of 2019, compared to $63.6 million for the first half of 2018. Shipping revenues for the Crude Tankers segment were $132.5 million for the first half of 2019, compared to $73.5 million in the first half of 2018.

  

 
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Product Carriers

TCE revenues for the Product Tankers segment were $16.8 million for the current quarter, compared to $15.6 million in the second quarter of 2018. This increase primarily resulted from the impact of higher average daily blended rates earned by the LR1, LR2 and MR fleets, with spot rates rising to approximately $17,300, $17,700 and $11,600 per day, respectively, increasing TCE revenues by approximately $3.7 million in the aggregate compared to the second quarter of 2018. This was partially offset by the impact of a decline in revenue days in the MR sector accounting for $2.3 million arising from the net impact of (i) a 287-day decrease in MR revenue days in the current period, resulting primarily from the sales of three MRs between the second and fourth quarters of 2018, one MR during the second quarter of 2019 and the redeliveries of two MRs to their owners during the second quarter of 2018 at the expiry of their respective bareboat charters, offset by (ii) a 78-day reduction in repair days as compared to the prior second quarter of 2018. Shipping revenues for the Product Carriers segment were $16.9 million for the second quarter of 2019, compared to $15.8 million in the second quarter of 2018. TCE revenues for the Product Carriers segment were $38.3 million for the first half of 2019, compared to $35.2 million for the first half of 2018. Shipping revenues for the Product Carriers segment were $38.4 million for the first half of 2019, compared to $35.4 million for the first half of 2018.

 

Vessel Sales and Charters-in of Vessels

During the second quarter, the Company sold and delivered a 2004-built MR to its buyer. The Company also agreed to sell another 2004-built MR, which was delivered to its buyer in July. In May, the Company chartered-in a 2010-built Panamax for a period of six months.

 

Additionally, subsequent to the end of the quarter, the Company exercised an option to extend the charter-in on a 2006-built MR for an additional 6-month period expiring in February 2020; and agreed to charter-in a 2006-built Panamax for a two-year period.

 

Debt Prepayment

On July 31, 2019, the Company made a prepayment of $10 million on the 2017 Term Loan Facility using restricted cash set aside from the proceeds of vessel sales. This prepayment will result in a $350 thousand reduction of interest expense for the remainder of 2019 as well as a $135 thousand proportional reduction in future quarterly principal amortization payments from $6.1 million to $6.0 million and is consistent with our stated capital allocation strategy.

 

Conference Call

The Company will host a conference call to discuss its second quarter 2019 results at 9:00 a.m. Eastern Time (“ET”) on Thursday, August 8, 2019.

 

To access the call, participants should dial (855) 940-9471 for domestic callers and (412) 317-5211 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 www.intlseas.com.

 

An audio replay of the conference call will be available starting at 12:00 p.m. ET on Thursday, August 8, 2019 through 11:59 p.m. ET on Thursday, August 15, 2019 by dialing (877) 344-7529 for domestic callers and (412) 317-0088 for international callers, and entering Access Code 10133806.

 

About International Seaways, Inc.

International Seaways, Inc. (NYSE: INSW) is one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets. International Seaways owns and operates a fleet of 46 vessels as of July 31, 2019, including 13 VLCCs, two Suezmaxes, six Aframaxes/LR2s, 11 Panamaxes/LR1s and 8 MR tankers. Through joint ventures, it has ownership interests in four liquefied natural gas carriers and two floating storage and offloading service vessels. International Seaways has an experienced team committed to the very best operating practices and the highest levels of customer service and operational efficiency. International Seaways is headquartered in New York City, NY. Additional information is available at www.intlseas.com.

 

 
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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 plans to issue dividends, its prospects, including statements regarding vessel acquisitions, trends in the tanker markets, and possibilities of strategic alliances and investments. Forward-looking statements are based on 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 2018 for the Company, the Quarterly Report on Form 10-Q for the quarter ended June 30, 2019, 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:

David Siever, International Seaways, Inc.

(212) 578-1635

[email protected]

 

 

 
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Consolidated Statements of Operations  

($ in thousands, except per share amounts)

 

   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
   2019   2018   2019   2018 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
Shipping Revenues:                    
Pool revenues  $44,713   $33,601   $112,350   $69,115 
Time and bareboat charter revenues   6,541    6,608    12,061    14,521 
Voyage charter revenues   17,756    16,700    46,473    25,251 
     Total Shipping Revenues   69,010    56,909    170,884    108,887 
                     
Operating Expenses:                    
Voyage expenses   6,523    6,897    14,368    10,074 
Vessel expenses   30,746    31,528    61,284    68,186 
Charter hire expenses   13,033    10,723    30,218    19,346 
Depreciation and amortization   18,818    16,804    37,747    34,428 
General and administrative   6,297    6,064    13,070    12,093 
Provision for credit losses, net   (21)   -    1,277    - 
Third-party debt modification fees   -    1,302    30    1,302 
Loss/(gain) on disposal of vessels and other property, net of impairments   1,548    (6,740)   1,500    (167)
Total operating expenses   76,944    66,578    159,494    145,262 
(Loss)/income from vessel operations   (7,934)   (9,669)   11,390    (36,375)
Equity in income of affiliated companies   8,015    8,822    16,085    17,162 
Operating income/(loss)   81    (847)   27,475    (19,213)
Other income/(expense)   839    (4,863)   1,875    (4,184)
Income/(loss) before interest expense and income taxes   920    (5,710)   29,350    (23,397)
Interest expense   (17,443)   (13,086)   (34,976)   (24,707)
Loss before income taxes   (16,523)   (18,796)   (5,626)   (48,104)
Income tax provision   -    -    -    (8)
Net loss  $(16,523)  $(18,796)  $(5,626)  $(48,112)
                     
Weighted Average Number of Common Shares Outstanding:                    
Basic   29,220,345    29,130,230    29,200,897    29,118,271 
Diluted   29,220,345    29,130,230    29,200,897    29,118,271 
                     
Per Share Amounts:                    
Basic and diluted net loss per share  $(0.57)  $(0.65)  $(0.19)  $(1.65)

 

 

 

 
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Consolidated Balance Sheets  

($ in thousands)

 

   June 30,   December 31, 
   2019   2018 
   (Unaudited)   (Unaudited) 
ASSETS          
Current Assets:          
Cash and cash equivalents  $91,662   $58,313 
Voyage receivables   74,460    94,623 
Other receivables   5,576    5,246 
Inventories   4,110    3,066 
Prepaid expenses and other current assets   6,916    5,912 
Current portion of derivative asset   30    460 
Total Current Assets   182,754    167,620 
Restricted Cash   58,630    59,331 
Vessels and other property, less accumulated depreciation   1,291,862    1,330,795 
Vessel held for sale   6,754    - 
Deferred drydock expenditures, net   23,382    16,773 
Total Vessels, Deferred Drydock and Other Property   1,321,998    1,347,568 
Operating lease right-of-use assets   33,216    - 
Investments in and advances to affiliated companies   265,959    268,322 
Long-term derivative asset   26    704 
Other assets   2,626    5,056 
Total Assets  $1,865,209   $1,848,601 
           
LIABILITIES AND EQUITY          
Current Liabilities:          
Accounts payable, accrued expenses and other current liabilities  $34,427   $23,008 
Current portion of operating lease liabilities   11,481    - 
Current installments of long-term debt   57,680    51,555 
Current portion of derivative liability   1,912    707 
Total Current Liabilities   105,500    75,270 
Long-term operating lease liabilities   19,030    - 
Long-term debt   736,826    759,112 
Long-term derivative liability   6,386    1,922 
Other liabilities   2,129    2,442 
Total Liabilities   869871    838,746 
           
Equity:          
Total Equity   995,338    1,009,855 
Total Liabilities and Equity  $1,865,209   $1,848,601 

 

On January 1, 2019, the Company adopted the provisions of ASU 2016-02, Leases (ASC 842), using the modified retrospective transition approach. Accordingly, the condensed consolidated balance sheet as of June 30, 2019 reflects right of use assets of $33,216 and corresponding lease liabilities aggregating $30,511. The adoption of this new standard did not have an impact on our lease expenses for the three and six months ended June 30, 2019.

 

 

 
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Consolidated Statements of Cash Flows

($ in thousands)

 

   Six Months Ended June 30, 
   2019   2018 
   (Unaudited)   (Unaudited) 
Cash Flows from Operating Activities:          
Net loss  $(5,626)  $(48,112)
Items included in net loss not affecting cash flows:          
Depreciation and amortization   37,747    34,428 
Loss on write-down of vessels and other assets   -    948 
Amortization of debt discount and other deferred financing costs   3,560    2,651 
Deferred financing costs write-off   -    2,273 
Stock compensation, non-cash   1,821    1,525 
Earnings of affiliated companies   (16,367)   (17,548)
Other – net   227    233 
Items included in net loss related to investing and financing activities:          
Loss/(gain) on disposal of vessels and other property, net   1,500    (1,115)
Loss on repurchase of debt   -    1,295 
Cash distributions from affiliated companies   6,528    35,863 
Payments for drydocking   (10,878)   (2,701)
Insurance claims proceeds related to vessel operations   640    3,528 
Changes in operating assets and liabilities   24,626    (3,145)
Net cash provided by operating activities   43,778    10,123 
Cash Flows from Investing Activities:          
Expenditures for vessels and vessel improvements   (5,356)   (128,925)
Proceeds from disposal of vessels and other property, net   9,090    126,504 
Expenditures for other property   (301)   (320)
Investments in and advances to affiliated companies, net   434    1,966 
Repayments of advances from affiliated companies   5,272    93,142 
   Net cash provided by investing activities   9,139    92,367 
Cash Flows from Financing Activities:          
Issuance of debt, net of issuance and deferred financing costs   -    72,924 
Extinguishment of debt   -    (60,000)
Payments on debt   (19,652)   (42,770)
Cash paid to tax authority upon vesting of stock-based compensation   (359)   (397)
Other – net   (258)   - 
   Net cash used in financing activities   (20,269)   (30,243)
Net increase in cash, cash equivalents and restricted cash   32,648    72,247 
Cash, cash equivalents and restricted cash at beginning of year   117,644    70,606 
Cash, cash equivalents and restricted cash at end of period  $150,292   $142,853 

 

 

 
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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 ended June 30, 2019 and the comparable period of 2018. Revenue days in the quarter ended June 30, 2019 totaled 3,430 compared with 3,833 in the prior year quarter. A summary fleet list by vessel class can be found later in this press release. The information in these tables excludes commercial pool fees/commissions averaging approximately $803 and $599 per day for the three months ended June 30, 2019 and 2018, respectively.

 

  Three Months Ended June 30, 2019   Three Months Ended June 30, 2018 
   Spot   Fixed   Total   Spot   Fixed   Total 
Crude Tankers                              
ULCC                              
Average TCE Rate  $-   $-        $-   $-      
Number of Revenue Days   -    -    -    4    -    4 
VLCC                              
Average TCE Rate  $20,038   $-        $12,242   $9,660      
Number of Revenue Days   1,065    -    1,065    813    9    822 
Suezmax                              
Average TCE Rate  $20,772   $-        $13,070   $-      
Number of Revenue Days   182    -    182    182    -    182 
Aframax                              
Average TCE Rate  $13,540   $-        $11,061   $-      
Number of Revenue Days   318    -    318    526    -    526 
Panamax                              
Average TCE Rate  $12,095   $13,199        $14,861   $11,323      
Number of Revenue Days   113    486    599    182    528    710 
Total Crude Tankers Revenue Days   1,678    486    2,164    1,707    537    2,244 
Product Carriers                              
LR2                              
Average TCE Rate  $17,746   $-        $12,585   $-      
Number of Revenue Days   72    -    72    91    -    91 
LR1                              
Average TCE Rate  $17,271   $-        $16,001   $-      
Number of Revenue Days   347    -    347    364    -    364 
MR                              
Average TCE Rate  $11,571   $-        $8,613   $5,294      
Number of Revenue Days   847    -    847    1,043    91    1,134 
Total Product Carriers Revenue Days   1,266    -    1,266    1,498    91    1,589 
Total Revenue Days   2,944    486    3,430    3,205    628    3,833 

 

The average rate reported in the above table for the Aframaxes includes 61 days in the second quarter of 2019 during which a 2001-built Aframax operated under a commercial management agreement subsequent to its departure from the commercial pool in which it previously participated.  The average spot TCE rate earned by the Company’s Aframaxes excluding such vessel subsequent to its departure from the commercial pool was $15,100 for the three months ended June 30, 2019. Further, the above table excludes activity in the Crude Tankers Lightering business and days for which recoveries were recorded under the Company’s loss of hire insurance policies.

 

 
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Fleet Information

As of June 30, 2019, INSW’s owned and operated 47 vessels, 35 of which were owned, 6 of which were chartered in, and 6 were held through joint venture partnerships (2 FSO and 4 LNG vessels)

 

    Vessels Owned   Vessels Chartered-in   Total at June 30, 2019
Vessel Type   Number   Weighted by Ownership   Number   Weighted by Ownership   Total Vessels   Vessels Weighted by Ownership   Total Dwt
Operating Fleet                            
FSO   2   1.0    -    -   2   1.0   864,046
VLCC   13   13.0    -    -    13   13.0   3,950,110
Suezmax   2   2.0    -    -    2   2.0   316,864
Aframax   3   3.0   2   2.0    5   5.0   562,943
Panamax   7   7.0    -    -    7   7.0   487,490
Crude Tankers   27   26.0   2   2.0   29   28.0   6,181,453
                             
LR2   1   1.00    -    -    1   1.0   109,999
LR1   4   4.00    -    -    4   4.0   297,710
MR   5   5.00   4   4.0    9   9.0   452,303
Product Carriers   10   10.00   4   4.0   14   14.0   860,012
                             
Total Crude Tanker & Product Carrier Operating Fleet   37   36.0   6   6.0   43   42.0   7,041,465
LNG Fleet   4   2.0    -    -    4   2.0   864,800 cbm
                            7,041,465
                            and
Total Operating Fleet   41   38.0   6   6.0   47   44.0   864,800 cbm

 

 

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.

 

 
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(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 condensed consolidated statements of operations follow:

 

   Three Months Ended June 30,   Six Months Ended June 30, 
($ in thousands)  2019   2018   2019   2018 
Time charter equivalent revenues  $62,487   $50,012   $156,516   $98,813 
Add: Voyage expenses   6,523    6,897    14,368    10,074 
Shipping revenues  $69,010   $56,909   $170,884   $108,887 

 

(B) EBITDA and Adjusted EBITDA

 

EBITDA represents net (loss)/income 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 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 loss as reflected in the condensed consolidated statements of operations, to EBITDA and Adjusted EBITDA:

 

   Three Months Ended June 30,   Six Months Ended June 30, 
($ in thousands)  2019   2018   2019   2018 
Net loss  $(16,523)  $(18,796)  $(5,626)  $(48,112)
Income tax provision   -    -    -    8 
Interest expense   17,443    13,086    34,976    24,707 
Depreciation and amortization   18,818    16,804    37,747    34,428 
EBITDA   19,738    11,094    67,097    11,031 
Third-party debt modification fees and costs                    
  associated with repurchase of debt   -    1,302    30    1,302 
Loss/(gain) on disposal of vessels and other property   1,548    (6,740)   1,500    (167)
Write-off of deferred financing costs   -    2,273    -    2,273 
Loss on extinguishment of debt   -    1,295    -    1,295 
Adjusted EBITDA  $21,286   $9,224   $68,627   $15,734 

 

 
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(C) Total Cash

 

   June 30,   December 31, 
($ in thousands)  2019   2018 
Cash and cash equivalents  $91,662   $58,313 
Restricted cash   58,630    59,331 
Total Cash  $150,292   $117,644 

 

 

 
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