Active Stock Momentum: Global Ship Lease, Inc. (NYSE:GSL)

On 17 May Friday, Global Ship Lease, Inc. (NYSE:GSL) above/below +1.25% and ended at $+0.08. The stock’s market capitalization arrived at $64.828M and total traded volume was 6,450 shares. During last trade, its maximum trading price was registered $6.54 and it’s the minimum trading price was noted $6.31.

Global Ship Lease, Inc. (GSL) reported recently its unaudited results for the three months and year ended December 31, 2018.

Fourth Quarter 2018 and Full Year Highlights 

– Stated operating revenues of $50.0M for the fourth quarter 2018.  Operating revenues for the year ended December 31, 2018 were $157.1M. Operating revenues include the Poseidon Containers fleet purchased on November 15, 2018.

– Stated net loss(1) of $72.5M for the fourth quarter 2018, after a non-cash impairment charge of $71.8M.  For the year ended December 31, 2018, net loss was $60.4M.

– Generated $26.6M of Adjusted EBITDA(2) for the fourth quarter 2018.  Adjusted EBITDA for the year ended December 31, 2018 was $97.2M.

– Normalized net income (1)(2), not including costs and charges associated with the planned combination, the non-cash impairment charge and the premium paid for amortization of our high yield notes, was $1.7M for the fourth quarter 2018.  Normalized net income was $13.8M for the year ended December 31, 2018.

Operating Revenues and Utilization

The Company’s fleet generated operating revenues from fixed-rate time charters of $50.0M in the three months ended December 31, 2018, an raise of $12.1M contrast to $37.9M for the comparative period in 2017, with the raise principallyBecause of the addition of the Poseidon Containers Fleet on November 15, 2018, partially offset by reduced revenue from GSL Ningbo and OOCL Qingdao as the charters for these vessels renewed at lower rates. There were 2,656 ownership days in the quarter, an raise of 60% contrast to 1,656 days in the comparable period in 2017, which was primarilyBecause of the addition of the Poseidon Containers Fleet and GSL Valerie in June 2018. In the fourth quarter 2018, there was no planned offhire from regulatory drydocking, seven days of unplanned offhire and 30 days of idle time for one vessel between charters, giving an overall utilization of 98.6%.  There were a total of 10 days of unplanned offhire in the fourth quarter 2017, giving an overall utilization of 99.4%.  

For the year ended December 31, 2018, operating revenues were $157.1M, a decrease of $2.2M, or 1.4%, contrast to $159.3M in the previousyear, notwithstanding the addition of the Poseidon Containers Fleet on November 15, 2018 and GSL Valerie, mainly for reduced revenue from GSL Ningbo and OOCL Qingdao as the charters for these vessels renewed at lower rates.

The table below shows our fleet utilization for the three months and years ended December 31, 2018 and 2017 and for the years ended December 31, 2016, 2015 and 2014.

General and Administrative Expenses
General and administrative expenses were $4.6M in the three months ended December 31, 2018, contrast to $1.5M in the same period in 2017. The raise was mainlyBecause of retention and severance costs of $2.0M and other costs associated with the Poseidon Transaction.

For the year ended December 31, 2018, general and administrative expenses were $9.2M, contrast to $5.4M for 2017, the raise being for the reason noted above.

Adjusted EBITDA

As a result of the above, Adjusted EBITDA was $26.6M for the three months ended December 31, 2018,  an raise  from $24.8M for the three months ended December 31, 2017, mainly as a result of the addition of the Poseidon Containers Fleet.

Adjusted EBITDA for the year ended December 31, 2018 was $97.2M, contrast to $110.3M for 2017 with the reduction mainly as a result of lower revenue on our legacy vessels, which was partially offset by the addition of the Poseidon Containers Fleet.

Interest Expense

Debt at December 31, 2018 totaled $889.3M, comprising $340.0M of indebtedness on our Notes and $34.8M of indebtedness under a secured term loan, both collateralized by 18 our legacy vessels, $506.3M bank debt collateralized by the Poseidon Containers Fleet and $8.2M drawn under our growth facility and secured by one vessel.

Debt at December 31, 2017 totaled $414.8M, comprised $360.0M outstanding on our Notes and $54.8M under a secured term loan, both of which were closed in October 2017 as part of a re-financing.  The net proceeds, together with cash on hand, were used to refinance our previous 10.000% notes due 2019 (“2019 Notes”).  In addition, all outstanding borrowings under both the previous revolving credit facility and the previous secured term loan were repaid and terminated.

Interest expense for the three months ended December 31, 2018, including on the debt assumed as part of the Poseidon Transaction on November 15, 2018, was $16.2M, a decrease of $10.8M on the interest expense for the three months ended December 31, 2017 of $27.0M.  Interest expense in the comparative period included charges associated with the refinancing of our 2019 Notes and other debt, which was completed in October 2017, and which resulted in a premium paid on the redemption of the 2019 Notes of $8.7M, the write off of the remaining balance of original issue discount associated with the 2019 Notes of $1.4M and the write off of the remaining balance of deferred financing charges of $4.3M associated with debt repaid.

For the year ended December 31, 2018, interest expense was $48.7M, a decrease of $10.7M on interest expense of $59.4M for the year ended December 31, 2017.  The reduction was mainly Because of the reasons noted above.

The short ratio in the company’s stock is documented at 1.29 and the short float is around of 0.81%. The average true range of the stock is observed at 0.30 and the relative strength index of the stock is recorded at 66.82.  Analyst recommendation for this stock stands at 2.00.

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