Fourth Quarter and Year Ended December 31, 2008 highlights:
Metric Q4 2008 Q4 2007 FY 2008 FY 2007
---------- ---------- ---------- ----------
Revenue (thousands) $ 139,788 $ 114,364 $ 611,633 $ 352,921
Net Income (thousands) $ 34,615 $ 35,154 $ 191,777 $ 98,249
EPS (diluted) $ 1.15 $ 1.26 $ 6.54 $ 3.50
Weighted Average Number of
Shares (diluted) 30,147,763 28,088,072 29,316,132 28,066,736
EBITDA (thousands)(1) $ 62,938 $ 47,793 $ 283,902 $ 143,999
Drydock Days 223 221 791 1,044
Freight Voyages
Average Daily Voyage TCE $ 24,809 $ 25,244 $ 29,526 $ 21,658
Freight Voyage Days 3,471 2,145 11,900 8,209
Tons of Cargo Shipped
(thousands) 2,355 1,838 9,315 6,621
Average Freight Rate for All
Cargoes $ 55.48 $ 42.62 $ 55.70 $ 39.49
Average Freight Rate excluding
Aggregates $ 78.12 $ 83.66 $ 88.08 $ 68.79
Bunker Cost/Voyage Day $ 7,111 $ 5,503 $ 7,340 $ 4,803
Time Charter out Voyages
Average Daily Time Charter TCE $ 7,963 $ 31,207 $ 26,134 $ 23,078
Time Charter Days 620 1,019 3,004 3,659
(1) EBITDA is a non-GAAP financial measure. Please refer to "Non-GAAP
Reconciliations-EBITDA" following the financial statements included in
this press release for a reconciliation of EBITDA to Net Income.
Management Commentary:
Joseph E. Royce, Chairman, Chief Executive Officer and President, stated:
"Our record 2008 financial results have quickly become history. Since the
last quarter of 2008 we have been experiencing a dramatic decline in the
global economy, and we now operate in a completely different financial and
economic environment, without clear visibility as to when the turmoil will
end.
"The near term effects of this dramatic decline have been devastating on
the dry cargo shipping industry. The freezing of the credit markets and the
virtual elimination of letters of credit which are the traditional
financing mechanism of global trade have caused a significant decrease in
the volume of cargo transported thereby affecting freight rates, vessel
utilization and asset values. As a result:
-- Freight rates collapsed, as indicated by the Baltic Dry Index, which
declined by 95% from its high value of 11,793 on May 20, 2008 to a low of
663 on December 5, 2008. Since then, the Index has modestly recovered to
1,646 as of March 30, 2009.
-- Vessels of all sizes have been idled, leading to a decline in fleet
utilization rates. Asset values in the sale and purchase market have
dropped substantially from their spring/summer 2008 highs.
-- Revenues, earnings and cash flows for the shipping industry are under
significant pressure and are expected to suffer during 2009.
"In the past several months, TBS has taken a series of proactive and
defensive initiatives to address these challenging times:
-- We suspended the purchase of additional second-hand vessels.
-- Because MPP Tweendeckers are an important segment of the TBS Fleet, we
intend to proceed with our plans to construct the six Roymar Class 34,000
dwt multipurpose (MPP) tweendeckers that were contracted in February 2007,
with delivery of the first vessel (the M.V. Rockaway Belle) expected in
June 2009.
-- However, in order to conserve our cash resources and limit new debt
incurrence, in October 2008, we cancelled contingent arrangements to build
twelve additional Roymar Class 34,000 dwt MPP tweendeckers. These
cancellations were effected without cost or penalties to TBS.
-- We recently completed our multi-year accelerated vessel upgrade and
drydock program and plan to make only necessary capital expenditures in
2009.
-- In November 2008, in a commitment to the future of TBS, year-end
bonuses accrued by the Company, aggregating $15 million, were cancelled.
-- We have frozen salaries for our officers and office staff at 2008
levels and we are engaged in an extensive cost-cutting program that should
result in 2009 operating economies.
-- We concluded agreements with our lenders to obtain covenant waivers
applicable to all of our outstanding loans for the calendar year 2009.
"At TBS, our strongest asset is our worldwide team of shipping
professionals. We have fully staffed affiliate agencies and representative
offices on five continents. We offer a unique Five Star Service consisting
of Ocean Transportation, Logistics, Port Services, Operations and Strategic
Planning. We implement this Five Star Service with our Fleet of 47 owned
or controlled vessels consisting of 23 handymax and handysize bulk carriers
and 24 multipurpose tweendeckers, one of which (the M.V. Zia Belle) has two
150 ton cranes combinable to 300 tons.
"Despite the lack of immediate visibility in the prevailing market
conditions, we are cautiously optimistic for a gradual return to an
improved market environment in the second half of 2009. Urbanization and
core economic development which have been the prevalent trends in
developing economies, especially in China and India, may temporarily slow
down but are irreversible. The concerted efforts of governments around the
world to inject liquidity into the credit markets and to implement stimulus
programs aimed mainly at infrastructure development should eventually
result in increased dry cargo movement. In the meantime, we will stay the
course, and remain vigilant to safeguard the value we have created and
alert to new opportunities that may arise."
Ferdinand V. Lepere, Executive Vice President and Chief Financial Officer,
commented: "As we announced, we are pleased to have obtained waivers to the
financial covenants from all of our lenders. The current economic
conditions and their impact on the shipping industry, and specifically the
market value of vessels, caused us to initiate discussions with all lenders
of our credit facilities to obtain waivers of the collateral coverage
requirements and other financial covenants. This is indicative of our
excellent relationship with our lenders and a favorable development for the
company. In connection with the credit facility waivers, we prepaid all
principal installments that would have become due under our term loan
facility during 2009, reducing our total non-construction debt to $247.5
million.
"Our newbuilding program for the six Roymar Class tweendeckers is
progressing and we have in place fixed term financing with a syndicate of
lenders led by The Royal Bank of Scotland for all remaining installments to
the shipyard including the delivery of the vessels. We expect delivery of
two vessels in 2009 and four vessels in 2010.
"In the fourth quarter of 2008, we continued with our drydocking and vessel
upgrade programs and drydocked five vessels for 223 drydocking days in
total. For the full year 2008, we drydocked 17 vessels for an aggregate of
791 days at a cost of approximately $31.9 million. The recent completion of
our multi-year accelerated vessel upgrade and drydock program enables us to
make only necessary maintenance-related capital expenditures in 2009."
Fourth Quarter 2008 Results:
For the fourth quarter ended December 31, 2008, total revenues were $139.8
million, an increase of 22.2% compared to the $114.4 million for the same
period in 2007. Net income for the fourth quarter 2008 was $34.6 million, a
decrease of 1.7% compared to $35.2 million for the same period in 2007.
Earnings per diluted share were $1.15 in the fourth quarter of 2008
compared to $1.26 for the fourth quarter 2007.
EBITDA, which is a non-GAAP measure, increased 31.6% to $62.9 million for
the fourth quarter 2008 from $47.8 million in 2007. Please see "Non-GAAP
Reconciliations - EBITDA" following the financial statements in this press
release for a reconciliation of EBITDA to net income.
An average of 44 vessels (excluding off-hire) were operating during the
fourth quarter of 2008 compared to 34 vessels (excluding off-hire) during
the same period in 2007.
Results for the Full Year ended December 31, 2008:
For the year ended December 31, 2008, total revenues were $611.6 million,
an increase of 73.3% compared to $352.9 million for the same period in
2007. Net income for the full year 2008 was $191.8 million, an increase of
95.3% compared to $98.2 million for the same period in 2007. Earnings per
share on a diluted basis were $6.54 for the full year 2008, calculated
based on 29,316,132 shares, compared to $3.50 for the same period in 2007,
calculated based on 28,066,736 shares.
EBITDA, which is a non-GAAP measure, increased by 97.2% to $283.9 million
for the full year 2008 from $144.0 million in 2007. Please see "Non-GAAP
Reconciliations - EBITDA" following the financial statements included in
this press release for a reconciliation of EBITDA to Net income.
Revenues:
Total revenues of $611.6 million for the full year 2008 include voyage
revenues of $518.9 million, time charter revenues of $83.9 million and
logistics and other revenues of $8.8 million.
An average of 41 vessels (excluding off-hire) were operated during the full
year 2008 compared to 33 vessels (excluding off-hire) during the same
period of 2007.
Voyage Revenues:
Voyage revenues for the full year 2008 were $518.9 million, an increase of
$257.4 million or 98.4% from the $261.5 million during the same period in
2007.
Total cargo volume (including aggregates) increased 2,693,825 tons or 40.7%
to 9,315,298 tons for the full year 2008 from 6,621,473 for the same period
in 2007. The increase in cargo volume is attributed to a 32.5% increase in
aggregates carried, and a 48.2% increase of non-aggregates carried.
Cargo volume (excluding aggregates) increased 1,661,969 tons or 48.2% to
5,108,983 tons for the full year 2008 from 3,447,014 tons for the same
period in 2007. Freight rates excluding aggregates increased $19.29 per ton
or 28.0% to $88.08 per ton for the year ended December 31, 2008 from $68.79
per ton during the same period in 2007.
Average Daily Voyage Time Charter Equivalent, which is an industry standard
metric reflecting the daily net earnings of a voyage after deducting all
voyage expenses from voyage revenues, was $29,526 per day for 2008, an
increase of 36.3% from the $21,658 during the same period in 2007 and a
decrease of 6.2% from the $31,463 per day during the nine months of 2008.
Time Charter Revenues:
Time charter revenues decreased by $4.5 million or 5.1% to $83.9 million
for the full year 2008 from $88.4 million for the same period in 2007
reflecting decreased time charter days due to the increase in the Company's
controlled vessels that were used in our established voyage business.
Average Daily Time Charter Equivalent, which is an industry standard metric
reflecting time charter-out revenues during the period reduced by
commissions, was $26,134 per day for 2008, an increase of 13.2% from the
$23,078 during the same period of 2007.
Expenses:
Total operating expenses for the full year 2008 increased by $151.1 million
or 60.1% to $402.4 million from $251.3 million for the same period in 2007.
However, as a percentage of revenue, total operating expenses decreased by
5.5% to 65.8% for the year ended December 31, 2008 from 71.3% for the same
period of 2007.
Voyage expenses, which include fuel costs, commissions, port call charges
and stevedoring, increased by $83.7 million or 93.8% to $172.9 million for
the full year 2008. The increase is due to an increase in fuel expenses
which were a result of higher average fuel costs and higher fuel
consumption due to an increased fleet, higher commission expense as a
result of higher voyage revenues, as well as increased port call expenses
and stevedore and other cargo-related expenses reflecting greater business
volume.
Vessel expenses which consist of operating expenses relating to owned and
controlled vessels, such as crewing, stores, repairs and maintenance,
insurance, as well as charter hire fees for vessels that are chartered-in,
increased by $24.4 million or 28.4% to $110.4 million for full year 2008 as
compared to $86.0 million for the same period in 2007. Owned vessel
expenses increased by $34.5 million due to a 25.6% increase in the day rate
and a 27.9% increase in vessel days for owned/controlled vessels.
Chartered-in vessel expenses decreased $11.4 million due to a decrease in
chartered-in vessel days and rates. However, as a percentage of total
revenue, vessel expenses decreased by 6.4% as compared to the same period
last year.
General and administrative expenses increased by $1.2 million or 3.1% to
$39.9 million for the full year 2008. This is mainly attributed to an
increase in salary and related expenses due to an increase in staff levels
and stock-based compensation costs offset by the elimination of 2008
bonuses.
The operating expenses for the full year 2008 also include an expense of
$5.7 million related to TBS Logistics Incorporated, a cargo and transport
management subsidiary started during the fourth quarter of 2007.
Recent Fleet Developments:
On December 12, 2008, TBS took delivery of the M.V. Zia Belle, previously
known as the M.V. CEC Cardigan, an acquisition the company announced in
September 2008. TBS had agreed to acquire the vessel charter free for $20.6
million. This vessel is a 1997 built, 8,492 dwt heavy-lift multipurpose
tweendecker with two 150 tons cranes, combinable to 300 tons.
TBS' current fleet comprises 47 vessels, with an aggregate of 1,398,965
dwt, consisting of 24 multipurpose tweendeckers and a combination of 23
handysize and handymax bulk carriers.
Fleet Expansion and Newbuilding Program:
The TBS Newbuilding Program to construct six multipurpose vessels with
retractable tweendecks is proceeding with the first vessel launched in
November. We expect delivery of two vessels in 2009 and four vessels in
2010.
TBS has in place a $150 million term loan credit agreement with a syndicate
of lenders led by The Royal Bank of Scotland to finance the building and
purchase of these six new multipurpose vessels.
We had been actively pursuing opportunities to build additional Roymar
Class ships in China for delivery through 2011. However, in light of
current conditions, we have cancelled this program.
TBS 2008 Drydock Program and Vessel Upgrade Program:
For the full year 2008, TBS drydocked 17 vessels, including one vessel that
entered into drydock during the fourth quarter of 2007 for an aggregate of
approximately 791 drydocking days, requiring steel renewals of about 3,378
metric tons, had a total cost of approximately $31.9 million.
During the fourth quarter 2008, three vessels that entered into drydock
during the third quarter extended into this quarter for 124 drydock days.
In addition, two vessels entered into drydocking during the fourth quarter
requiring about 696 metric tons of steel and 99 drydock days.
Conference call and webcast:
On Wednesday, April 1, 2009 at 10:00 a.m. ET, the company's management will
host a conference call to discuss the results.
Conference call details:
Participants should dial into the call 10 minutes before the scheduled time
using the following numbers: 1-888-679-8035 (from the US) or 1-617-213-4848
(International Dial In). Participant Passcode: 20744194. Participants may
pre-register for the call at
https://www.theconferencingservice.com/prereg/key.process?key=PHJ3BGG6H.
Pre-registrants will be issued a PIN number to use when dialing into the
live call which will provide quick access to the conference by bypassing
the operator upon connection.
Replay:
A telephonic replay of the conference call will be available from 1:00 p.m.
ET on Wednesday, April 1, 2009 until, Wednesday, April 8, 2009 by dialing
1-888-286-8010 (from the US) or 1-617-801-6888 (International Dial In).
Access Code: 71192492. A replay of the webcast will be available soon
after the completion of the call.
Webcast:
There will also be a live -- and then archived -- slides and audio webcast
of the conference call on the company's website www.tbsship.com, which can
be accessed by clicking on the webcast link. As soon as practicable, the
webcast and the corresponding slides will be archived and will also be
accessible on our website.
Consolidated Statements of Income
(In thousands, except per share amounts and outstanding shares)
Three Months Ended Year Ended
December 31, December 31,
---------------------- ----------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
Revenue:
Voyage revenue (1) $ 130,654 $ 78,314 $ 518,907 $ 261,509
Time charter revenue 6,591 33,618 83,883 88,365
Logistics revenue (2) 1,712 668 7,000 668
Other revenue 831 1,764 1,843 2,379
---------- ---------- ---------- ----------
Total revenue 139,788 114,364 611,633 352,921
---------- ---------- ---------- ----------
Operating expenses:
Voyage (1) 46,198 27,585 172,929 89,241
Logistics (2) 1,300 557 5,717 557
Vessel 31,846 23,268 110,354 85,958
Depreciation and
amortization of vessels
and other fixed assets 23,491 10,153 73,479 36,022
General and
administrative (1,305) 15,899 39,879 38,703
Loss from sale of
vessel (3) - - - 814
---------- ---------- ---------- ----------
Total operating expenses 101,530 77,462 402,358 251,295
---------- ---------- ---------- ----------
Income from operations 38,258 36,902 209,275 101,626
---------- ---------- ---------- ----------
Other (expenses) and income:
Interest expense (4,910) (2,622) (17,228) (10,394)
Interest and other income 1,267 874 2,048 983
(Loss) on extinguishment
of debt (4) - - (2,318) -
Gain on sale and
insurance recovery
of vessel (5) - - - 6,034
---------- ---------- ---------- ----------
Total other (expenses)
and income, net (3,643) (1,748) (17,498) (3,377)
---------- ---------- ---------- ----------
Net income $ 34,615 $ 35,154 $ 191,777 $ 98,249
========== ========== ========== ==========
Earnings per share:
Net income per common
share:
Basic $ 1.15 $ 1.27 $ 6.55 $ 3.51
Diluted $ 1.15 $ 1.26 $ 6.54 $ 3.50
Weighted average common
shares outstanding:
Basic 30,106,711 28,044,310 29,263,292 28,029,340
Diluted (6) 30,147,763 28,088,072 29,316,132 28,066,736
Operating Data for the Three Months and Year Ended December 31, 2008 and
2007
Three Months Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
Other Operating Data:
Controlled vessels (at end of
period)(7) 47 36 47 36
Chartered vessels (at end of
period) (8) - 1 - 1
Freight Voyage days (9) 3,471 2,145 11,900 8,209
Vessel days (10) 4,467 3,439 16,337 13,236
Tons of cargo shipped (11) 2,355 1,838 9,315 6,621
Revenue per ton (12) $ 55.48 $ 42.62 $ 55.70 $ 39.49
Tons of cargo shipped, excluding
aggregates (11) (13) 1,421 851 5,109 3,447
Revenue per ton, excluding
aggregates (12) (13) $ 78.12 $ 83.66 $ 88.08 $ 68.79
Chartered-out days 620 1,019 3,004 3,659
Chartered-out rate per day $ 10,630 $ 32,991 $ 27,924 $ 24,150
TCE per day - Freight Voyages (14) $ 24,809 $ 25,244 $ 29,526 $ 21,658
TCE per day - Time Charters-Out (15) $ 7,963 $ 31,207 $ 26,134 $ 23,078
(1) To conform to the 2008 presentation, we revised our Statement of
Operations for 2007 for despatch, which were included in voyage
expense, to voyage revenue. This revision did not impact net
income. Despatch of $2,684 was changed from voyage expense to
voyage revenue for 2007.
(2) TBS Logistics represents revenue and related costs for cargo and
transportation management services as part of TBS' Five Star
Service to customers which began operations in the fourth quarter
of 2007.
(3) The 2007 loss on sale of vessel represents the loss on the sale
of the Maya Princess of $0.8 million.
(4) In 2008 the loss on extinguishment of debt represents the
write-off of unamortized deferred finance costs in connection with
the March 2008 refinancing of the Bank of America syndicated
credit facility.
(5) For the year ended December 31, 2007, the Company had a gain on
the sale and insurance recovery of the Huron Maiden. The vessel
was severely damaged in a grounding accident on an uncharted rock
while on passage near Indonesia on March 9, 2007. On April 4,
2007, the vessel was declared a constructive total loss.
Accordingly, TBS received a net amount of $8.0 million from the
Hull & Machinery/ Increased Value insurances after a scrap value
credit of $2.0 million. The Company retained the proceeds on the
sale of the vessel for scrap, which was sold and delivered to the
buyer on May 4, 2007 for $2.8 million. After expenses in
connection with the accident and the sale of the vessel of
approximately $1.2 million, TBS realized a gain on the casualty
and sale of the vessel of approximately $6.0 million.
(6) Diluted weighted average common shares outstanding for the three
months and year ended December 31, 2008 and 2007, includes 41,052,
43,762, 52,840 and 37,396 weighted average common shares,
respectively, relating to the restricted Class A common shares
granted to our employees and independent directors.
(7) Controlled vessels are vessels that are owned or chartered-in
with an option to purchase. As of December 31, 2008, two vessels
in the controlled fleet were chartered-in with an option to
purchase.
(8) Represents vessels that were both chartered-in under short-term
charters (less than one year at the start of the charter) and
chartered in under long-term charters without an option to
purchase.
(9) Represents the number of days controlled and time-chartered
vessels were operated by the Company performing freight voyages.
Freight voyage days exclude both off-hire days and time chartered
out days.
(10) Represents the number of days that relate to vessel expense for
controlled and time-chartered vessels. Vessel expense relating to
controlled vessels is based on a 365-day year. Vessel expense
relating to chartered-in vessels is based on the actual number of
days the vessel is operated, excluding off-hire days.
(11) In thousands.
(12) Revenue tons is a measurement on which shipments are freighted.
Cargoes are rated as weight (based on metric tons) or measure
(based on cubic meters), whichever produces the higher revenue
will be considered the revenue ton. Average revenue per ton for
2007 was reduced from the amount previously reported due to the
reclassification of despatch. See comment number one above.
(13) Aggregates represent high-volume, low-freighted cargo, which can
overstate the amount of tons that is carried on a regular basis
and accordingly reduces the revenue per ton. TBS believes that
the exclusion of aggregates better reflects their cargo shipping
and revenue per ton data for their principal services.
(14) Daily Time Charter Equivalent or "TCE" rates are defined as voyage
revenue less voyage expenses during the year divided by the number
of available freight voyage days during the year. Voyage expenses
include: fuel, port call, commissions, stevedore and other cargo
related and miscellaneous voyage expenses. To conform with the
2008 presentation daily time charter equivalent rate for 2007 was
revised to exclude intercompany commissions and management fees
eliminated in consolidation. No deduction is made for vessel or
general and administrative expenses. TCE includes the full amount
of any probable losses on voyages at the time such losses can be
estimated. TCE is an industry standard for measuring and
analyzing fluctuations between financial periods and as a method
of equating TCE revenue generated from a voyage charter to time
charter revenue.
(15) Daily Time Charter Equivalent or "TCE" rates for vessels that are
time chartered out, are defined as time charter revenue during the
year reduced principally by commissions divided by the number of
available time charter days during the year. Commissions for
vessels that are time chartered out for the three months ended
December 31, 2008 and December 31, 2007 were $0.3 million and $1.8
million, respectively. For the three months ended December 31,
2008, time charter voyages include fuel cost of $1.4 million
related to fuel price differentials caused by volatility in the
fuel market and the cost for ballasting vessels to time charter
delivery ports. Commission for vessels that are time chartered
out for the year ended December 31, 2008 and December 31, 2007
were $3.6 million and $3.9 million, respectively. For the year
ended December 31, 2008, time charter voyages include fuel cost
of $1.8 million related to fuel price differentials caused by
volatility in the fuel market and the cost for ballasting vessels
to time charter delivery ports. No deduction is made for vessel
or general and administrative expenses. TCE is an industry
standard for measuring and analyzing fluctuations between
financial periods and as a method of equating TCE revenue
generated from a voyage charter to time charter revenue. No voyage
expenses are deducted because they are not applicable.
Balance Sheet Data
Please find below TBS' selected balance sheet data:
December 31, December 31,
2008 2007
------------- -------------
Balance Sheet Data (In thousands):
Cash and cash equivalents $ 131,150 $ 30,498
Working capital 104,311 1,744
Total assets 1,041,685 559,113
Total debt, including current portion 383,074 180,166
Total shareholders' equity 598,296 319,563
Non-GAAP Reconciliations
Please find below TBS' EBITDA reconciliation for the three months and year
ended December 31, 2008 and 2007.
Three Months Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
-------- -------- -------- --------
EBITDA Reconciliation (In thousands):
Net Income $ 34,615 $ 35,154 $191,777 $ 98,249
Net interest expenses 4,832 2,486 18,646 9,728
Depreciation and Amortization 23,491 10,153 73,479 36,022
-------- -------- -------- --------
EBITDA $ 62,938 $ 47,793 $283,902 $143,999
======== ======== ======== ========
Forward Looking Statements "Safe Harbor" Statement under the Private
Securities Litigation Reform Act of 1995
This press release contains forward-looking statements made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. 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 press release are the following:
-- changes in demand for the company's services, which are increasingly
difficult to predict due to the current economic downturn and the
widespread reduction of business activity generally;
-- a decline in rates in the shipping market, will continue for a
prolonged period;
-- the effect of a decline in vessel valuations;
-- the company's ability to maintain financial ratios and satisfy
financial covenants in its credit facilities;
-- 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, generally or in particular regions;
-- the risk that financial counterparties will default;
-- 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,
its anticipated drydocking or maintenance and repair costs;
-- increases in the cost of the company's drydocking program or delays in
its 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, 2008 and
its subsequent reports on Form 10-Q and Form 8-K.
About TBS International Limited:
TBS is a fully-integrated transportation service company that offers
customers the TBS Five Star Service consisting of: ocean transportation,
operations, logistics, port services, and strategic planning. We offer
liner, parcel, bulk, and chartering services, supported by a fleet of
multipurpose tweendeckers and handysize and handymax bulk carriers,
including specialized heavy-lift vessels. TBS has developed its business
around key trade routes between Latin America and China, Japan and South
Korea, as well as select ports in North America, Africa, the Caribbean and
the Middle East.
Visit our website at www.tbsship.com
Contact Information: For more information, please contact: Company Contact: Ferdinand V. Lepere Executive Vice President and Chief Financial Officer TBS International Limited Tel. 914-961-1000 InvestorRequest@tbsship.com Investor Relations / Media: Nicolas Bornozis Capital Link, Inc. New York Tel. 212-661-7566 tbs@capitallink.com