International Shipholding Group said last week it had a profit of $7.9 million in the first quarter of 2012, compared to $24.1 million in the same 2011 period.
Last year in the first quarter, the company had a $18.7 million gain from taking full ownership of two dry bulk ships. Excluding the non-recurring transactions, net income for the first quarter of 2012 was $4.1 million as compared to $5.4 million for the comparable quarter in 2011.
Revenue in the first quarter 2012 was $65.2 million, compared to $64.3 million in the same 2011 period.
During the first quarter of this year the company said it generated a reportable gain of $3.8 million from a transaction involving the sales of two foreign-flag pure car truck carriers (PCTCs). It said the sale of the PCTCs combined with the sale-leaseback of a U.S.-flag PCTC, generated cash proceeds of $132.1 million enabling the company to pay down $90.6 million in debt.
“During a time in which our fleet of diversified vessels continued to generate contract revenue, we enhanced our financial position by monetizing our investments in three Pure Car Truck Carriers,” said Niels M. Johnsen, chairman and chief executive officer, in a statement. “Importantly, one of these monetization transactions was a sale leaseback with early buy-out options that enables the company to maintain commercial control of the vessel. Proceeds from these transactions provide us with significant capital to pay down debt and pursue accretive growth opportunities.”
International Shipholding’s $7.9 million 1Q profit
