TBS International Limited. Jefferies 5 th Annual Shipping, Logistics & Offshore Services Conference Presentation September 17, 2008

Transcription

1 TBS International Limited Jefferies 5 th Annual Shipping, Logistics & Offshore Services Conference Presentation September 17, 2008

2 Forward Looking Statements This presentation contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of These forward-looking statements are based on management's current expectations and observations. Included among the factors that, in the company's view, could cause actual results to differ materially from the forward looking statements contained in this presentation are the following: changes in demand for the company s services; a material decline or prolonged weakness in rates in the shipping market; changes in rules and regulations applicable to the shipping industry, including, without limitation, legislation adopted by international organizations such as the International Maritime Organization and the European Union or by individual countries; actions taken by regulatory authorities; changes in trading patterns significantly impacting overall vessel tonnage requirements; changes in the typical seasonal variations in charter rates; increases in costs, including changes in production of or demand for oil and petroleum products, crew wages, insurance, provisions, repairs and maintenance; changes in general domestic and international political conditions; changes in the condition of the company's vessels or applicable maintenance or regulatory standards which may affect, among other things, the company's anticipated drydocking or maintenance and repair costs; increase in the cost of our drydocking program or delays in anticipated drydocking schedule; China Communications Construction Company Ltd./ Nantong Yahua Shipbuilding Co., Ltd. s ability to complete and deliver the vessels on the anticipated schedule and the ability of the parties to satisfy the conditions in the shipbuilding agreements; and other factors listed from time to time in the company's filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the period ended December 31, 2007 and its subsequent reports on Form 10- Q and Form 8-K. Page 1

3 Management Presenter Joseph E. Royce President, Chairman and Chief Executive Officer TBS International Limited Page 2

4 Investment Highlights Unique, Five Star service approach to ocean cargo transportation Diversified customers and cargo base Established presence serving niche markets Demonstrated track record of growth Strong industry fundamentals in the non-containerized dry cargo and project sectors Solid financial position and momentum, with record cargo volumes, Revenue, EBITDA and Net Income Page 3

5 TBS at a Glance Mixture of liner, parcel and bulk transportation services - Non-containerized cargoes - Five principal trade routes Business First Fleet Second Strategy ($millions) Total Revenues & Tons Shipped (millions) Long-standing position in our core markets in Latin America and Asia Prudent and disciplined growth strategy fueled by expansion into the Middle East and African markets Worldwide Services/Routes Solid second quarter results Page 4

6 Second Quarter & Six Months Ended June 30, 2008 Overview Q Q Q2 2008/ 2007 Revenues (millions) Net Income (1) (millions) EPS diluted (1) EPS diluted excl. non-recurring items (1) EBITDA (2) (millions) Daily Freight Voyage TCE Daily Time Charter TCE Drydock days $156.9 $52.6 $1.82 $1.82 $72.8 $31,212 $30, $76.7 $21.7 $0.77 $0.56 $32.3 $20,538 $18, % 142% 136% 225% 125% 52% 63% (45)% 6M M M 2008/ 2007 Revenues (millions) Net Income (1) (millions) EPS diluted (1) EPS diluted excl. non-recurring items (1) EBITDA (2) (millions) Daily Freight Voyage TCE Daily Time Charter TCE Drydock days $288.5 $98.0 $3.44 $3.52 $137.1 $29,866 $30, $147.0 $36.1 $1.29 $1.10 $57.7 $19,213 $17, % 171% 167% 220% 138% 55% 70% (40)% (1) Net Income and EPS for the second quarter 2007 include a gain of $6.0 million from the sale and insurance recovery of the M.V. Huron Maiden following her constructive total loss, or $0.21 per share. Before this gain, Net Income and EPS would have been $15.7 million and $0.56 per share for the second quarter Net Income and EPS for the six months ended June 30, 3008, includes $2.3 million for the loss on extinguishment of debt, or $0.08 per share. Net Income and EPS for the six months ended June 30, 2007, include a gain of $6.0 million from the sale and insurance recovery of the M.V. Huron Maiden and a loss of $800 thousand from the sale of the M.V. Maya Princess, or $0.19 per share. Before these items, Net Income and EPS would have been $100.3 million and $3.52 per share for six months 2008 and $30.9 million and $1.10 per share for (2) Non-GAAP financial measure. A reconciliation of EBITDA to Net Income is provided on page 18. Page 5

7 Unique Fleet Offers Superior Service Current Fleet Overview 47 vessels (24 multipurpose tweendeckers and 23 handysize and handymax bulk carriers) Tweendeck optimizes floor space and cargo flexibility Self-loading/self-discharging utilizing 8-10 cbm grabs Heavy-lift capability up to 300 tons Newbuilding Fleet Retractable Tweendeck Six Roymar Class 34,000 DWT multipurpose tweendeckers with retractable tweendecks to be delivered BULK PAPER STEEL COIL LUMBER PIPES PROJECT CARGO HARD BOARD MACHINERY STEEL PLATES TRUCKS COAL Pursuing opportunities to build additional Roymar Class sister ships in China for delivery through 2011 Page 6

8 TBS Five Star Service TBS builds partnerships with its customers by delivering a full-service approach to shipping that allows customers to optimize their global supply chains Transportation Operations Logistics Portside Services Strategic Planning Page 7

9 Representative Parcel Cargoes Page 8

10 Representative Parcel Cargoes Page 9

11 Representative Project Cargoes/ Heavy Lift Page 10

12 Our Trade Routes Services Acronym Routes Cargo TBS Pacific Services TPL Eastbound: Japan, South Korea and China to the West, North and East Coasts of South America Steel products, project cargo and general cargo Westbound: Peru and Chile to East Asia Minerals, metals and fertilizer TBS Latin America Service TLA Northbound: Brazil to Colombia, Venezuela, Caribbean basin and the West Coast of South Africa Steel products, project cargo and general cargo Southbound: Colombia to Brazil and Argentina Coal and petroleum coke TBS North America Service TNA North America to the Caribbean, Brazil, and Argentina Fertilizer and agricultural products TBS Middle East Carriers TME Middle East region including ports in United Arab Emirates and Qatar Bulk aggregates TBS Ocean Carriers TOC Brazil to the West Coast of Africa Bulk sugar and salt Page 11

13 Global Network & Focus on Customer Relationships Professional worldwide staff of 290 employees representing 42 nationalities Over 300 customers in more than 20 countries Seoul Tokyo Shanghai TBS Agency/Office Network Houston New York Hamilton Hamburg London 18 full-time port captains Fully staffed agencies and representative offices on five continents Mexico City Dominican Republic Guatemala Caracas San Jose Bogota Quito Guayaquil Santiago Lima La Paz Sao Paulo Rio De Janeiro Buenos Aires Lagos Dubai Direct customer contact Long-standing customer relationships Page 12

14 TBS Net Income as compared to Baltic Dry Index Page 13

15 Appendix Page 14

16 Consolidated Balance Sheet Highlights In millions $ 6/ /2007 Cash and Equivalents $ $ 30.5 Vessels, net Total Assets Total Debt (including current portion) Shareholders Equity Net Debt/Total Capitalization 30.3% 31.9% Page 15

17 Historical Financial Performance Total Revenue Net Income ($ in millions) ($ in millions) CAGR: 19.4% CAGR: 31.5% Number of Vessels (1) Tons of Cargo (millions) (1) Controlled and chartered vessels at end of period. Page 16

18 6M 2008 Voyage Revenue Composition (Total: $226.8 million) TBS has a diversified and strengthened revenue mix By Cargo By Customer Size By Geography Steel products, Agricultural Products and Metal Concentrates now account for over 63% of revenues Highly diversified customer base with no one customer making up over 15.59% of revenues Continued diversification of revenue by geography Note: Dollars in millions. Revenue breakdowns apply to freight revenue only. Page 17

19 Reconciliations EBITDA Reconciliation Three Months Ended Six Months Ended June 30, June 30, In millions $ Net Income (1) $52.6 $21.7 $98.0 $36.1 Net interest expense Depreciation and Amortization EBITDA (1) $72.8 $32.3 $137.1 $57.7 (1) Net income for the six months ended June 30, 2008 includes $2.3 million for the loss on extinguishment of debt, which was incurred during the first quarter of Net income for the six months ended June 30, 2007 includes a gain of $6.0 million from the sale and insurance recovery of the M.V. Huron Maiden, which occurred during the second quarter of 2007 and a loss of $800 thousand from the sale of the M.V. Maya Princess, which occurred during the first quarter of Before these items, net income for the six months ended 2008 and 2007 would have been $100.3 million and $30.9 million, respectively and net income for the three months ended June 30, 2007 would have been $15.7 million. Page 18

20 Reconciliations Income before non-recurring items Reconciliation Three Months Ended Six Months Ended June 30, June 30, In million $ (except EPS & share numbers) Net Income $52.6 $21.7 $98.0 $36.1 Loss on extinguishment of debt Loss on sale of vessel Gain on sale and insurance recovery of vessel - (6.0) - (6.0) Income before loss on sale of vessel and other nonrecurring items $52.6 $15.7 $100.3 $30.9 Earnings per share (before loss on sale of vessel and other non-recurring items) Basic $1.83 $0.56 $3.53 $1.10 Diluted $1.82 $0.56 $3.52 $1.10 Weighted average common shares outstanding Basic 28,778,769 28,014,925 28,411,539 28,014,122 Diluted 28,873,395 28,064,954 28,476,436 28,048,295 Page 19

21 Contacts Visit our website Company Contact: Joseph E. Royce President and Chief Executive Officer TBS International Limited Investor Relations/Media: Nicolas Bornozis Capital Link, Inc., New York Tel Ferdinand V. Lepere Executive Vice President and Chief Financial Officer TBS International Limited Tel Page 20