Company Declares Cash Dividend of $0.57 Per Share HAMILTON,
Bermuda, Oct. 21 /PRNewswire-FirstCall/ -- Arlington Tankers Ltd.
(NYSE:ATB) today announced financial results for the third quarter
ended September 30, 2008. For the quarter ended September 30, 2008,
the Company's total revenues were $17.9 million, consisting of
$16.7 million in basic vessel charter hire and $1.2 million in
additional charter hire that the Company received under its profit
sharing arrangements. Arlington's Board of Directors has declared a
cash dividend of $0.57 per share. The dividend is payable on
November 4, 2008 to shareholders of record at the close of business
on October 31, 2008. Third Quarter Results The additional charter
hire earned during the third quarter of 2008 was derived from
profit sharing arrangements under the time charters of the
Company's V-MAX, Panamax and Product tankers. Of the $1.2 million
in additional charter hire, $700,000 was attributed to profit
sharing for the two V-MAX vessels. The remaining $500,000 was
attributed to additional charter hire from the Company's two
Panamax tankers. For these two vessels, the average time charter
equivalent rates under the Company's profit sharing agreements over
the preceding twelve months were in excess of contractual minimum
levels. The Company's operating expenses during the third quarter
of 2008, including depreciation costs of $3.9 million and
administrative expenses of $2.7 million were $11.8 million.
Included in the $2.7 million of administrative expenses are $2.3
million of expenses incurred in connection with the Company's
pending merger with General Maritime Corporation. These merger
costs were funded with a portion of the Company's interest rate
swap benefit realized in 2005 that had not been previously
distributed to shareholders. The Company's interest expense, net of
interest income for the third quarter of 2008, was $3.4 million.
This expense represents interest under the Company's $229.5
million, secured credit facility with The Royal Bank of Scotland
plc. The Company's net income for the third quarter of 2008 was
decreased by an unrealized loss of approximately $270,000,
representing the change in the fair value of the Company's interest
rate swap arrangement related to its secured credit facility with
The Royal Bank of Scotland plc. As a result, the Company's net
income for the third quarter of 2008 was $2.4 million, or $0.16 per
share. Excluding the expenses incurred in connection with the
pending General Maritime merger and the effect of the unrealized
loss on the interest rate swap, the Company's net income for the
third quarter of 2008 was $4.9 million, or $0.32 per share. General
Maritime Merger Update On August 5, 2008, the Company entered into
a definitive agreement with General Maritime whereby the two
companies will combine in a stock-for-stock combination. Under the
terms of the definitive agreement, shareholders of General Maritime
will receive 1.340 shares of the combined company for each share of
General Maritime held, and shareholders of Arlington Tankers will
receive one share of the combined company for each share of
Arlington Tankers held. The completion of the proposed merger
remains subject to approval by the shareholders of Arlington and
General Maritime, and certain other conditions. The transaction is
expected to be completed by the end of the fourth quarter of 2008.
"We continue to be very excited about our pending combination with
General Maritime," said Edward Terino, Chief Executive Officer,
President and Chief Financial Officer of Arlington. "We believe
that the merger will provide Arlington's shareholders the
opportunity to participate in the potential increased future value
of a larger company with an attractive business profile. The
combined company will have a young, diverse fleet of vessels, a
management team with experience in consolidations and a strong
platform for long-term dividend and fleet growth. Following the
merger, the combined company is expected to follow a partial
dividend payout with an initial cash dividend target of $2.00 per
share annually. Benefits of the combined company also include a
charter revenue stream of approximately $450 million under contract
through 2013, and estimated cash cost savings of $7.5 million
expected to be realized in the first year of post-closing
operations." Business Update All of Arlington's eight vessels are
currently trading on time charter contracts to subsidiaries of
Stena AB and Concordia Maritime AB. The charters have terms that
expire at various dates, with the charters for four vessels
expiring in 2009, the charters for two vessels expiring in 2010 and
the charters for two vessels expiring in 2011. All of the charter
contracts also include options to extend the terms of the charters.
During the second quarter of 2008, the Company announced that Stena
had exercised the first of its three one-year options for the Stena
Companion and Stena Concord, and its 30-month options for the Stena
Contest and Stena Concept. Each charter contract provides for
fixed-rate basic charter hire during the operating period. In
addition to the fixed-rate basic charter hire, the Company's two
V-MAX vessels, two Panamax tankers and two of the Company's four
Product tankers currently have the possibility of receiving
additional charter hire from the time charterers through profit
sharing arrangements related to the performance of the tanker
markets on specified geographic routes, or from actual time charter
rates. As a result of Stena's exercise of the option to extend the
charters for the Stena Contest and Stena Concept, these vessels
will have the possibility of receiving additional charter hire
during the 30-month period from January 5, 2009 through July 4,
2011. Tanker freight rates are volatile and additional charter hire
for the Panamax and Product tankers is not guaranteed. The
Company's two V-MAX vessels are receiving additional hire from the
time charterers through profit sharing arrangements based on
sub-charters with Sun International and Eiger Shipping, SA, an
affiliate of the shipping branch of LukOil International Trading
and Supply Company. During the third quarter of 2008, the two-year
sub-charter with Eiger Shipping, SA, for the Stena Vision
commenced. Mr. Terino added, "We are very pleased with overall
results for the third quarter of 2008. Despite the recent turmoil
in the financial markets and declines in share prices across the
shipping sector, Arlington delivered on its dividend guidance. In
addition, our profit sharing arrangements generated positive cash
flows for dividend distribution for the sixteenth consecutive
quarter since we commenced operations in 2004." Dividend Policy
Arlington has paid quarterly cash dividends in amounts
substantially equal to the charter hire revenues received, less
cash expenses and any adjustments for cash reserves established or
drawn down by the Company's Board of Directors. The Company is not
providing dividend guidance for the remainder of 2008 because
future dividends will be the responsibility of the combined company
in the pending combination with General Maritime, assuming the
transaction closes before the end of 2008. Use of Non-GAAP
Financial Measures This press release includes a presentation of a
non-GAAP financial measure of net income excluding the expenses
incurred in connection with the pending General Maritime merger and
the effect of an unrealized loss representing the change in the
fair value of the Company's interest rate swap arrangement related
to its secured credit facility with The Royal Bank of Scotland
plc., which effectively fixes the interest rate of the Company's
debt. The Company's management believes that this non-GAAP
financial measure provides useful information to investors because
it excludes the effects of one-time cash transaction costs and
excludes the effects of unrealized gains and losses, which are
non-cash items that may change from quarter to quarter. Management
believes that the cash transaction costs and the unrealized gains
and losses in the fair value of the Company's interest rate swap
arrangement related to its secured credit facility with The Royal
Bank of Scotland plc. are not necessarily representative of
underlying trends in the Company's performance and their exclusion
provides individuals with additional information to compare the
Company's results over multiple periods. The Company uses this
non-GAAP financial measure internally to focus management on
period-to-period changes in the Company's core business. In
accordance with the requirements of Regulation G issued by the
Securities and Exchange Commission, the table below presents the
most directly comparable GAAP financial measure and reconciles the
non-GAAP financial measure described above to GAAP net income.
Arlington Tankers Ltd. (In thousands, except per share data) Three
Months Nine Months Ended Sept. 30, Ended Sept. 30, 2008 2007 2008
2007 --------------------------------------- Net income (loss)
(GAAP) $2,421 ($41) $11,458 $12,343 Transaction costs 2,253 - 2,571
- Unrealized loss on interest rate swap 269 4,955 99 2,624
-------------------------------------- Net income (non-GAAP) $4,943
4,914 $14,128 $14,967 -----------------------------------------
Basic and diluted net income (loss) per share: GAAP $0.16 ($0.00)
$0.74 $0.80 ---------------------------------------- Non-GAAP $0.32
$0.32 $0.91 $0.97 ---------------------------------------- Shares
used in per share calculations: Basic and diluted 15,500,000
15,500,000 15,500,000 15,500,000 About Arlington Tankers Arlington
Tankers Ltd. is an international, seaborne transporter of crude oil
and petroleum products. Arlington's fleet consists exclusively of
eight, modern double-hulled vessels and is one of the youngest
tanker fleets in the world, with an average vessel age of
approximately 5.0 years. The fleet consists of two V-MAX tankers,
which are specially designed very large crude carriers, two Panamax
tankers and four Product tankers. All of the Company's vessels are
employed on long-term time charters. The Company was incorporated
in Bermuda in September 2004. The Company completed its initial
public offering on the New York Stock Exchange on November 10,
2004. Safe Harbor Statement This press release contains certain
forward-looking statements and information relating to the Company
that are based on beliefs of the Company's management as well as
assumptions made by the Company and information currently available
to the Company, in particular the statements regarding the
Company's expectations as to the completion of the pending
combination transaction with General Maritime and the effects
thereof, the declaration, payment and estimated amount of future
dividends, the market rates which pertain to the Company's spot
trading vessels, additional hire that may be earned in the future,
and the exercise by the charterers of options to extend the terms
of the charters of certain of the Company's vessels. When used in
this press release, words such as "believe," "intend,"
"anticipate," "estimate," "project," "forecast," "plan,"
"potential," "will," "may," "should," and "expect" and similar
expressions are intended to identify forward-looking statements but
are not the exclusive means of identifying such statements. All
statements in this document that are not statements of historical
fact are forward-looking statements. The forward-looking statements
contained in this press release reflect the Company's current views
with respect to future events and are subject to certain risks,
uncertainties and assumptions. Many important factors could cause
the Company's actual results, performance or achievements to be
materially different from any future results, performance or
achievements that may be expressed or implied by such
forward-looking statements, including, among others: the
possibility that the Company's pending combination transaction with
General Maritime may not be completed, the possibility that the
Company may not pay dividends, the highly cyclical nature of the
tanker industry, global demand for oil and oil products, the number
of newbuilding deliveries and the scrapping rate of older vessels,
terrorist attacks and international hostilities, and compliance
costs with environmental laws and regulations. These and other
risks are described in greater detail in the "Risk Factors" section
of the Company's Quarterly Report on Form 10-Q for the quarter
ended June 30, 2008, filed with the United States Securities and
Exchange Commission. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described
in the forward-looking statements included in this press release.
The Company does not intend, and does not assume any obligation, to
update these forward-looking statements. Important Additional
Information will be filed with the SEC In connection with the
Company's pending combination transaction with General Maritime,
Galileo Holding Corporation has filed a Registration Statement on
Form S-4 with the SEC, and one amendment thereto, which includes a
preliminary Joint Proxy Statement/Prospectus. The Company and
General Maritime will mail to their respective shareholders the
definitive Joint Proxy Statement/Prospectus in connection with the
proposed transaction. Investors and security holders are urged to
read the Joint Proxy Statement/Prospectus regarding the proposed
transaction carefully because it contains important information
about the Company, General Maritime, the proposed transaction and
related matters. You may obtain a free copy of the Joint Proxy
Statement/Prospectus and other related documents filed by the
Company, General Maritime and Galileo Holding with the SEC at the
SEC's website at http://www.sec.gov/. The Joint Proxy
Statement/Prospectus and the other documents may also be obtained
for free by accessing the Company's website at
http://www.arlingtontankers.com/ or by accessing General Maritime's
website at http://www.generalmaritimecorp.com/. The Company and
General Maritime, and their respective directors and executive
officers, may be deemed to be participants in the solicitation of
proxies in respect of the transactions contemplated by the merger
agreement. Information regarding the Company's directors and
executive officer is contained in the Company's Annual Report on
Form 10-K for the fiscal year ended December 31, 2007 and its proxy
statement dated April 23, 2008, which are filed with the SEC.
Information regarding General Maritime's directors and executive
officers is contained in General Maritime's Annual Report on Form
10-K for the fiscal year ended December 31, 2007 and its proxy
statement dated April 11, 2008, which are filed with the SEC. In
addition, Peter C. Georgiopoulos, currently the Chairman, President
and Chief Executive Officer of General Maritime, will receive
benefits from General Maritime in connection with the executive
transition discussed in the Joint Proxy Statement/Prospectus, and
General Maritime is discussing with Edward Terino, currently the
Chief Executive Officer, President, and Chief Financial Officer of
the Company, a consulting arrangement for assistance in the
post-closing transition period. Furthermore, the Board of Directors
of the Company is contemplating an award of a bonus to Mr. Terino
in the amount of $750,000. A more complete description of any such
arrangements is available in the Registration Statement and the
Joint Proxy Statement/Prospectus. Contact: Arlington Tankers Ltd.
Edward Terino, President, Chief Executive Officer and Chief
Financial Officer 203-221-2765 Arlington Tankers Ltd. Condensed
Consolidated Statement of Operations (In thousands, except per
share data) (Unaudited) Three Months Three Months Nine Months Nine
Months Sept. 30, Sept. 30, Sept. 30, Sept. 30, 2008 2007 2008 2007
--------- --------- --------- --------- Revenue $17,851 $17,512
$52,847 $52,630 Operating expenses: Vessel operating expenses 5,138
4,937 15,568 14,901 Depreciation 3,891 3,861 11,501 11,456
Administrative expenses 2,748 564 4,205 1,707 Total operating
expenses 11,777 9,362 31,274 28,064
------------------------------------------- Operating income 6,074
8,150 21,573 24,566 Other income (expenses): Interest income 68 216
266 645 Interest expense (3,452) (3,452) (10,282) (10,244)
Unrealized loss on interest rate swap (269) (4,955) (99) (2,624)
------------------------------------------ Other (expenses), net
(3,653) (8,191) (10,115) (12,223)
-------------------------------------------- Net income (loss)
$2,421 ($41) $11,458 $12,343
-------------------------------------------- Net income (loss) per
share $0.16 ($0.00) $0.74 $0.80 Weighted average shares outstanding
15,500,000 15,500,000 15,500,000 15,500,000 Arlington Tankers Ltd.
Condensed Consolidated Balance Sheets (In thousands) Sept. 30, 2008
Dec. 31, 2007 Assets (Unaudited) ------ Current assets: Cash and
cash equivalents $15,268 $6,274 Short-term investments -- 12,500
Accounts receivable 1,167 304 Prepaid expenses and accrued income
92 184 ------------------------------ Total current assets 16,527
19,262 Vessels, net 317,829 329,330 Deferred debt issuance costs
539 717 ------------------------------ Total assets $334,895
$349,309 ------------------------------ Liabilities and
Shareholders' Equity ------------------------------------ Current
liabilities: Accrued expenses $2,804 $451 Unearned revenue 3,409
5,693 ------------------------------ Total current liabilities
6,213 6,144 Interest rate swap agreement at fair value 7,552 7,453
Long term debt 229,500 229,500 ------------------------------ Total
liabilities 243,265 243,097 Shareholders' equity 91,630 106,212
------------------------------ Total liabilities and shareholders'
equity $334,895 $349,309 ------------------------------ DATASOURCE:
Arlington Tankers Ltd. CONTACT: Edward Terino, President, Chief
Executive Officer and Chief Financial Officer, Arlington Tankers
Ltd., +1-203-221-2765
Copyright
Arlington Tankers (NYSE:ATB)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
Arlington Tankers (NYSE:ATB)
Historical Stock Chart
Von Jun 2023 bis Jun 2024