International Shipholding reports $8.5m loss in Q1

The Jones Act and special cargo carrier reduced debt by $42.7 million in quarter, and improved results in its Jones Act operations, according to the company’s most recent financial statements.    International Shipholding Corp. said this week it had a net loss of $8.5 million in the first quarter ending March 31, 2016, but that it is continuing to make progress in its effort to reduce debt as part of its strategic plan.
   The company said it had reduced gross debt obligations to $117.1 million as of March 31, down from $159.8 at the end of 2015, through the sale of its remaining dry bulk vessels and completing the sale of its minority interest in minibulkers, two chemical tankers and two asphalt tankers. The company said it has an objective to lower debt below $100 million.
   The company’s net loss of $8.5 million on revenues of $53.8 million in the first quarter compared with a loss of $4.5 million on $68 million in revenues in the same 2015 period. The loss in the first quarter included $1.9 million related to impairment losses mainly involving the write down of assets for sale and $1.4 million related to the recognition of an additional premium on its preferred stock dividends. The company said its liquidity and principal loan agreements currently prohibit payment.
   International Shipholding’s Jones Act segment posted a gross voyage profit of $3.5 million in the first quarter of 2016 compared with $2.2 million in the first quarter of 2015.
   “Although we experienced lower tonnage levels, which primarily related to one contract, our margins increased as a result of improved operational efficiencies that yielded reduced ballast voyage days, coupled with the receipt of insurance proceeds and lower amortization expense,” the company said.
   Gross voyage profit in International Shipholding’s Pure Car Truck Carrier (PCTC) segment decreased from $4.0 million in the first quarter of 2015 to $1.9 million in the first quarter of 2016. The company operated two less PCTCs in the current quarter as a result of vessel sales that occurred in the second and fourth quarters of 2015.