Metric Q4 2009 Q4 2008 FY 2009 FY 2008
------ ---------- ----------- ---------- -----------
Revenue (thousands) $ 84,790 $ 139,788 $ 302,516 $ 611,633
Net (Loss)
Income(thousands) $ (10,700) $ 34,615 $ (67,040) $ 191,777
(Loss) Income (excl.
non-recurring items)
(thousands) (1) (2) $ (9,485) $ 34,615 $ (65,289) $ 191,777
EPS (basic and diluted) $ (0.36) $ 1.15 $ (2.25) $ 6.53
EPS (excl. non recurring
items) (1) (2) $ (0.32) $ 1.15 $ (2.19) $ 6.53
Weighted Average Number of
Shares (basic and diluted) 29,865,308 30,106,711 29,843,566 29,263,292
EBITDA (thousands) (3) $ 19,373 $ 62,938 $ 45,860 $ 283,902
Drydock Days 183 223 664 791
Freight Voyages
---------------
Average Daily Voyage TCE $ 13,158 $ 24,809 $ 12,069 $ 29,526
Freight Voyage Days 2,742 3,471 11,470 11,900
Tons of Cargo Shipped
(thousands) 2,094 2,355 8,788 9,315
Average Freight Rate for
All Cargoes $ 31.79 $ 55.48 $ 28.22 $ 55.70
Average Freight Rate
excluding Aggregates $ 50.00 $ 78.12 $ 45.36 $ 88.08
Bunker Cost/Voyage Day $ 5,717 $ 7,111 $ 4,832 $ 7,340
Time Charter out Voyages
------------------------
Average Daily Time Charter
TCE $ 12,184 $ 7,963 $ 10,070 $ 26,134
Time Charter Days 1,322 620 4,733 3,004
(1) Loss and EPS before non-recurring items is a non-GAAP financial
measure. For a reconciliation of loss and EPS before non-recurring
items for the three months and year ended December 31, 2009, please
refer to "Non-GAAP Reconciliations" later in this press release.
(2) Loss and EPS for the three months and year ended December 31, 2009
exclude $1.2 million or $0.04 per share and $1.7 million or $0.06 per
share, respectively, for expenses related to the redomestication to
Ireland.
(3) EBITDA is a non-GAAP financial measure. Please refer to "Non-GAAP
Reconciliations" following the financial statements included in this
press release for a reconciliation of EBITDA to Net (Loss) Income.
Management Commentary:
Joseph E. Royce, Chairman and Chief Executive Officer and President stated:
"2009 was a particularly challenging year for the global economy and
shipping, especially for the dry cargo markets, where we experienced a
dramatic decline in demand and freight rates. In this context, our
financial results for 2009 were not unexpected, and they reflect the normal
progression of the recovery of dry cargo ocean transportation from the
depths of the severe global recession we experienced.
"There are already signs of a gradual yet fragile economic recovery around
the world. This recovery was initiated as of the second quarter of 2009
with the movement of basic raw materials such as iron ore, coal, and
agricultural products on Capesize and Panamax vessels and had a positive
impact on the bulk cargo side of our business. Our TBS liner and parcel
services, that primarily transport steel parcels, general and project
cargo, began their recovery during the fourth quarter, which proved to be
our best quarter in 2009. This recovery is gaining momentum as we enter
2010.
"During these adverse and challenging market conditions, we continued to
leverage our strongest assets -- our worldwide team of shipping
professionals and our Five-Star Service consisting of Ocean Transportation,
Logistics, Port Services, Operations and Strategic Planning. We maintained
the quality and reliability of our services, stayed close to our customers
strengthening our franchise and took several new initiatives positioning
TBS to benefit from the recovery.
"We strengthened our local presence in China, established a strong presence
in Houston, which is the regional energy and project logistics hub, and
entered into several strategic long-term alliances in Brazil, Ecuador,
Peru, the Dominican Republic, Jamaica and Africa that can generate a new
steady stream of cargo volumes.
"Following shareholder approval, we completed TBS' redomiciliation to
Ireland, which we believe will provide us with economic benefits and help
ensure our continued global competitiveness.
"In September 2009, we took delivery of the M/V Rockaway Belle, our first
newbuilding multipurpose tweendecker and expanded our fleet to 48 vessels.
This was a significant milestone for our Company and was part of our
long-term fleet modernization and expansion program. The M/V Rockaway Belle
is the first in a series of six larger multipurpose tweendecker vessels
specifically designed by a TBS team with the objective to increase our
operational flexibility, optimize our cargo transportation and support the
requirements of our customer base.
"Looking ahead, there are still several significant challenges to cope
with. However, we believe that we can be cautiously optimistic as the
global economy is slowly but gradually recovering and there are improving
conditions in TBS niche markets."
Ferdinand V. Lepere, Executive Vice President and Chief Financial Officer,
commented: "In 2009, we proactively prepaid principal in the amount of
$53.5 million and made scheduled debt payments of $7.5 million on our
outstanding debt. Our net debt to capitalization ratio was 35.8%, a modest
figure for our industry, with a cash balance of $51.0 million on December
31, 2009. In addition, we have $8.7 million of restricted cash on deposit
that is to be used for our payments to the shipyard on our newbuilding
program.
"The global financial crisis has had an adverse impact on our vessel values
and cash flows, which in turn has adversely affected our ability to comply
with certain financial covenants in our credit facilities. The existing
waivers on our loan agreements expire on April 1, 2010 and we are in the
process of discussing with our lenders permanent modifications to our
credit facilities that would enable TBS to be in compliance with these
covenants through maturity. In addition, we are exploring the feasibility
of alternative financing sources to repay some of our existing credit
facilities. We have also filed and have in place a registration statement
on Form S-3, which allows TBS to issue registered securities and may
provide TBS another liquidity option.
"Temporarily while we work through these issues with our banks, Generally
Accepted Accounting Principles require us to operate with a 'going concern'
qualification. When we are able to put a more permanent solution in place
with our lenders, this 'going concern' will be lifted.
"Our newbuilding program for the six Roymar Class multipurpose tweendeckers
is in progress and we have in place the requisite bank financing for them.
We took delivery of our first vessel in September 2009. Of the remaining
five vessels, we expect three vessels to be delivered in 2010 and two in
2011."
Fourth Quarter 2009 Results:
For the fourth quarter ended December 31, 2009, total revenues were $84.8
million, a decrease of 39.3% compared to the $139.8 million for the same
period in 2008. Net loss for the fourth quarter 2009 was $10.7 million, a
decrease of 130.9% compared to $34.6 million profit for the same period in
2008. Earnings per share on a basic and diluted basis were $(0.36) in the
fourth quarter of 2009, calculated based on 29,865,308 shares, compared to
$1.15 for the fourth quarter of 2008, calculated based on 30,106,711
shares.
Net Loss and EPS for the three months ended December 31, 2009 include $1.2
million or $0.04 per share for expenses related to the redomestication to
Ireland. Before this non-recurring charge, Net Loss would have been $9.5
million and EPS would have been $(0.32) for the fourth quarter of 2009.
EBITDA, which is a non-GAAP measure, decreased by 69.2% to $19.4 million
for the three months ended December 31, 2009 from $62.9 million in 2008.
Please see "Non-GAAP Reconciliations" following the financial statements
included in this press release for a reconciliation of EBITDA to net (loss)
income.
An average of 44 vessels (excluding off-hire) were operated during the
three months ended December 31, 2009 and 2008.
Total revenues of $84.8 million for the fourth quarter 2009 include voyage
revenues of $66.6 million, time charter revenues of $16.9 million and
logistic and other revenues of $1.3 million.
Year Ended December 31, 2009 Results:
For the year ended December 31, 2009, total revenues were $302.5 million, a
decrease of 50.5% compared to the $611.6 million for the year 2008. Net
loss for 2009 was $67.0 million, a decrease of 134.9% compared to $191.8
million profit for 2008. Earnings per share on a basic and diluted basis
were $(2.25) for the year ended December 31, 2009, calculated based on
29,843,566 shares, compared to $6.53 for the year 2008, calculated based on
29,263,292 shares.
EBITDA, which is a non-GAAP measure, decreased by 83.8% to $45.9 million
for the year ended December 31, 2009 from $283.9 million in 2008. Please
see "Non-GAAP Reconciliations - EBITDA" following the financial statements
in this press release for a reconciliation of EBITDA to net (loss) income.
Revenues:
Total revenues of $302.5 million for 2009 include voyage revenues of $248.0
million, time charter revenues of $51.2 million and logistics and other
revenues of $3.3 million.
An average of 44 vessels (excluding off-hire) were operated during the year
2009 compared to 41 vessels (excluding off-hire) during 2008.
Voyage Revenues:
Voyage revenues for 2009 were $248.0 million, a decrease of $270.9 million
or 52.2% from the $518.9 million in 2008. The decrease in voyage revenue
was caused by the economic downturn that negatively affected the average
freight rates and the revenue tons carried.
Total cargo volume (including aggregates) decreased 527,000 tons or 5.7% to
8,788,000 tons for the year ended December 31, 2009 from 9,315,000 tons for
the year 2008. This decline is mainly attributed to the decrease in steel
products transported. Non-aggregate revenue tons carried decreased 382,000
tons for 2009 whereas aggregate revenue tons carried decreased 145,000 tons
for 2009 as compared to 2008. Freight rates excluding aggregates decreased
by $42.72 per ton or 48.5% to $45.36 per ton for 2009 from $88.08 per ton
during 2008.
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 $12,069 per day for 2009, a
decrease of 59.1% from the $29,526 during 2008 and an increase of 2.9% from
the $11,726 per day during the nine months 2009.
Time Charter Revenues:
Time charter revenues decreased by $32.7 million or 39.0% to $51.2 million
for the year ended December 31, 2009 from $83.9 million for 2008. The
decrease was primarily caused by a 61.3% decrease in the average charter
hire rates which was partially offset by an increase in the number of days
that vessels were chartered out.
Average Daily Time Charter Equivalent, which is an industry standard metric
reflecting time charter-out revenues during the period reduced by
commissions, was $10,070 per day for 2009, a decrease of 61.5% from the
$26,134 during 2008. The key factor driving the decrease in the average
time charter equivalent rate per day is the worldwide economic crisis.
Expenses:
Total operating expenses for 2009 decreased by $49.9 million or 12.4% to
$352.5 million from $402.4 million for 2008.
Voyage expenses, which include fuel costs, commissions, port call charges
and stevedoring, declined by $59.8 million or 34.6% to $113.1 million for
the year ended December 31, 2009. The decrease is due to a decline in fuel
expenses as a result of lower average fuel costs and lower fuel
consumption; decreased commission expense as a result of lower voyage
revenues, as well as lower port call expenses and stevedore and other
cargo-related expenses.
Vessel expenses which consist of operating expenses relating to owned and
controlled vessels, such as crewing, stores, repairs and maintenance,
insurance and charter hire fees for vessels that are chartered-in,
decreased by $6.3 million or 5.7% to $104.1 million for 2009 as compared to
$110.4 million for 2008. The decrease in the vessel expense in 2009 was
principally due to a decrease in the average charter-in rate per day and a
decrease in the number of chartered-in vessels as compared to 2008.
Chartered-in vessel expenses decreased by $8.0 million due to a decrease in
the chartered-in rate per day. Owned vessel expenses increased by $1.2
million due to an increase in fleet size which was partially offset by a
decrease in the vessel operating day rate. Average operating expense day
rates decreased principally due to a decrease of expenditures for repairs
and maintenance.
General and administrative expenses decreased by $2.6 million or 6.6% to
$37.3 million for the year 2009 reflecting our cost reduction efforts.
The operating expenses for 2009 also include an expense of $2.2 million
related to TBS Logistics Incorporated, our cargo and transport management
subsidiary.
Corporate Developments:
In December 2009, our shareholders voted in favor of the proposal for the
place of incorporation of the company to be changed from Bermuda to
Ireland. The reorganization was completed on January 6, 2010 at which time
TBS International plc replaced TBS International Limited as the parent
company and began trading under the same ticker symbol "TBSI" on the NASDAQ
Global Select Market.
Debt Reclassification:
The global financial crisis has had a significant impact on vessel
valuations, which in turn has affected our ability to comply with certain
financial covenants in our credit facilities. The existing waivers on the
loan agreements expire on April 1, 2010 and the Company is in discussions
with its lenders to obtain permanent covenant modifications to our credit
facilities.
Our long-term loans are classified as a current liability in the
consolidated balance sheet at December 31, 2009, in conformity with
Generally Accepted Accounting Principles and will remain as such until
discussion with our lenders result in permanent covenant modifications.
As mentioned, the Company is exploring the feasibility of alternative
financing sources to repay some of their existing credit facilities. We
have filed and have in place a registration statement on Form S-3, which
may provide us with another liquidity option.
Fleet Expansion and Newbuilding Program:
The previously announced TBS Newbuilding Program to construct six Roymar
Class multipurpose vessels with retractable tweendecks is proceeding with
the delivery of the first, M/V "Rockaway Belle," on September 23, 2009. Of
the remaining five vessels, the Company expects delivery of three vessels
in 2010 and two vessels in 2011.
TBS previously entered into 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. As of December
31, 2009, the Company has made cumulative payments of $112.0 million to the
Shipyard toward the purchase of the five remaining newbuild vessels.
TBS 2009 Drydock Program and Vessel Upgrade Program:
For the year 2009, TBS drydocked 23 vessels for approximately 664
drydocking days with steel renewal of about 2,400 metric tons at a total
cost of approximately $22.8 million. This included one vessel that entered
into drydock during the fourth quarter of 2008.
During the fourth quarter of 2009, five vessels entered into drydocking for
183 days, requiring about 700 metric tons of steel.
For 2010, TBS' plan is to drydock 17 vessels for approximately 422
drydocking days with a steel renewal of about 1,700 metric tons at a total
cost of approximately $15.5 million. This includes two vessels that entered
into drydocking during the fourth quarter of 2009.
Conference call and webcast:
On Tuesday, March 16, 2010 at 11:00 a.m. EDT, 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: 1-888-713-4205 (from the US) or 1-617-213-4862
(International Dial In). Participant Passcode: 53126122. Participants may
pre-register for the call at
https://www.theconferencingservice.com/prereg/key.process?key=PU6C3KJ4K.
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.
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.
Replay:
A telephonic replay of the conference call will be available from 2:00 p.m.
EDT on Tuesday, March 16, 2010 until Tuesday, March 23, 2010 by dialing
1-888-286-8010 (from the US) or 1-617-801-6888 (International Dial In).
Access Code: 52620746. A replay of the webcast will be available soon
after the completion of the call.
Consolidated Statements of Income
For the Fourth Quarter and Year
Ended December 31, 2009 and 2008
(In thousands, except per share amounts and outstanding shares)
Three Months Ended Year ended
December 31, December 31,
---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
Revenue
Voyage revenue $ 66,563 $ 130,654 $ 247,980 $ 518,907
Time charter revenue 16,890 6,591 51,201 83,883
Logistic revenue (1) 1,139 1,712 2,689 7,000
Other revenue 198 831 646 1,843
---------- ---------- ---------- ----------
Total Revenue 84,790 139,788 302,516 611,633
---------- ---------- ---------- ----------
Operating expenses
Voyage 31,266 46,198 113,084 172,929
Logistics (1) 1,018 1,300 2,193 5,717
Vessel 22,045 31,846 104,046 110,354
Depreciation and
amortization of vessels
and other fixed assets 25,801 23,491 95,870 73,479
General and
administrative 11,144 (1,305) 37,265 39,879
---------- ---------- ---------- ----------
Total operating expenses 91,274 101,530 352,458 402,358
---------- ---------- ---------- ----------
(Loss) income from
operations (6,484) 38,258 (49,942) 209,275
Other (expenses) and income
Interest expense (4,279) (4,910) (17,119) (17,228)
Loss on extinguishment of
debt (2) - - - (2,318)
Interest and other income
(expense) 63 1,267 21 2,048
---------- ---------- ---------- ----------
Total other (expenses) and
income, net (4,216) (3,643) (17,098) (17,498)
---------- ---------- ---------- ----------
Net (loss) income $ (10,700) $ 34,615 $ (67,040) $ 191,777
========== ========== ========== ==========
Earnings per share
Net (loss) income per
ordinary share
Basic and Diluted $ (0.36) $ 1.15 $ (2.25) $ 6.53
Weighted average ordinary
shares outstanding
Basic and Diluted 29,865,308 30,106,711 29,843,566 29,263,292
Operating Data for the Three Months and Year Ended December 31, 2009
and 2008
Three Months Ended Year Ended
December 31, December 31,
----------------------- -----------------------
2009 2008 2009 2008
----------- ----------- ----------- -----------
Other Operating Data:
Controlled vessels (at end
of period) (3) 48 47 48 47
Chartered vessels (at end
of period) (4) - - - -
Freight Voyage days (5) 2,742 3,471 11,470 11,900
Vessel days (6) 4,416 4,467 17,567 16,337
Tons of cargo shipped (7) 2,094 2,355 8,788 9,315
Revenue per ton (8) $ 31.79 $ 55.48 $ 28.22 $ 55.70
Tons of cargo shipped,
Excluding aggregates (7)
(9) 1,215 1,421 4,727 5,109
Revenue per ton, excluding
aggregates (8) (9) $ 50.00 $ 78.12 $ 45.36 $ 88.08
Chartered-out days 1,322 620 4,733 3,004
Chartered-out rate per day $ 12,776 $ 10,630 $ 10,818 $ 27,924
TCE per day-Freight Voyages
(10) $ 13,158 $ 24,809 $ 12,069 $ 29,526
TCE per day-Time
Charters-Out (11) $ 12,184 $ 7,963 $ 10,070 $ 26,134
(1) TBS Logistics represents revenue and related costs for cargo and
transportation management services as part of TBS' Five Star Service
to customers.
(2) 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.
(3) Controlled vessels are vessels that are owned or chartered-in with an
option to purchase. As of December 31, 2009, two vessels in the
controlled fleet were chartered-in with an option to purchase.
(4) 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.
(5) 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.
(6) 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.
(7) In thousands.
(8) 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.
(9) 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.
(10) Daily Time Charter Equivalent or "TCE" rates are defined as voyage
revenue less voyage expenses during the period divided by the number
of available freight voyage days during the period. Voyage expenses
include: fuel, port call, commissions, stevedore and other cargo
related and miscellaneous voyage expenses. 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.
(11) Daily Time Charter Equivalent or "TCE" rates for vessels that are time
chartered out are defined as time charter revenue during the period
reduced principally by commissions divided by the number of available
time charter days during the period. Commission for vessels that are
time chartered out for the three months ended December 31, 2009 and
December 31, 2008 were $0.7 million and $0.3 million, respectively.
For the three months ended December 31, 2009 and 2008, time charter
voyages include fuel cost and other miscellaneous voyage costs for a
total of $0.1 million and $1.4 million, respectively. Commission for
vessels that are time chartered out for the years ending December 31,
2009 and December 31, 2008 were $2.1 million and $3.6 million,
respectively. For the years ending December 31, 2009 and 2008, time
charter voyages include fuel cost and other miscellaneous voyage costs
of $1.4 million and $1.8 million, respectively. The fuel cost, which
made up most of the costs, is 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.
Balance Sheet Data
Please find below TBS' selected balance sheet data:
December 31, December 31,
2009 2008
------------ ------------
Balance Sheet Data (In thousands):
Cash and cash equivalents $ 51,040 $ 131,150
Restricted cash 8,675 -
Working capital (285,823) 104,311
Total assets 953,588 1,041,685
Long-term debt, including current portion 351,247 383,074
Total shareholders' equity 537,728 598,296
Non-GAAP Reconciliations
Please find below TBS' EBITDA reconciliation for the three months and
years ending December 31, 2009 and 2008.
Three Months Ended Year Ended
December 31, December 31,
---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
EBITDA Reconciliation
(In thousands):
Net (loss) income $ (10,700) $ 34,615 $ (67,040) $ 191,777
Net interest expense 4,272 4,832 17,030 18,646
Depreciation and
amortization 25,801 23,491 95,870 73,479
---------- ---------- ---------- ----------
EBITDA $ 19,373 $ 62,938 $ 45,860 $ 283,902
========== ========== ========== ==========
Please find below TBS' Reconciliation of net (loss) income to (loss)
income before non-recurring items for the three months and years ending
December 31, 2009 and 2008.
Three Months Ended Year Ended
December 31, December 31,
---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
(Loss) Income before
non-recurring items
Reconciliation (In
thousands):
Net (loss) income $ (10,700) $ 34,615 $ (67,040) $ 191,777
Expenses related to the
redomestication to
Ireland 1,215 - 1,751 -
---------- ---------- ---------- ----------
(Loss) income before
non-recurring items: $ (9,485) $ 34,615 $ (65,289) $ 191,777
========== ========== ========== ==========
Earnings per share (before
non-recurring items)
Basic and Diluted $ (0.32) $ 1.15 $ (2.19) $ 6.53
Weighted average ordinary
shares outstanding
Basic and Diluted 29,865,308 30,106,711 29,843,566 29,263,292
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 current economic conditions and
uncertainty;
-- the effect of a decline in vessel valuations;
-- the company's ability to maintain financial ratios and satisfy
financial covenants required by its credit facilities;
-- the company's ability to finance our operations and raise additional
capital on commercially reasonable terms or at all;
-- changes in rules and regulations applicable to the shipping industry,
including 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, which may significantly affect overall
vessel tonnage requirements;
-- changes in the typical seasonal variations in charter rates;
-- volatility 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;
-- a material decline or weakness in shipping rates, which may occur if
the economic recovery is not sustainable;
-- 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 Group Co., Ltd.'s ability to complete and deliver the
remaining vessels on the anticipated schedule and the ability of the
parties to satisfy the conditions in the shipbuilding agreements;
-- the possible effects of pending and future legislation in the United
States that may limit or eliminate potential U.S. tax benefits
resulting from our jurisdiction of incorporation;
-- Irish corporate governance and regulatory requirements which could
prove different or more challenging than currently expected; and
-- other factors listed from time to time in the company's filings with
the Securities and Exchange Commission, including, without limitation,
our Annual Report on Form 10-K for the period ended December 31, 2008
and our subsequent reports on Form 10-Q and Form 8-K.
About TBS International plc
TBS is a fully-integrated transportation service company that provides
worldwide shipping solutions to a diverse client base of industrial
shippers. Through the TBS Five Star Service consisting of ocean
transportation, operations, logistics, port services, and strategic
planning, TBS offers total project coordination and door-to-door supply
chain management. The TBS shipping network offers liner, parcel and dry
bulk services, supported by a fleet of multipurpose tweendeckers and
handysize and handymax bulk carriers, including specialized heavy-lift
vessels and newbuild tonnage. 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 plc Tel. 914-961-1000 InvestorRequest@tbsship.com Investor Relations / Media: Nicolas Bornozis Capital Link, Inc. New York Tel. 212-661-7566 E-mail: tbs@capitallink.com