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Global Ship Lease – GSL – Results for the Third Quarter of 2012

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Global Ship Lease, Inc. (NYSE:GSL), a containership charter owner, announced its unaudited results for the three months and nine months ended September 30, 2012.

GSL – Third Quarter and Year To Date Highlights

  • GSL Reported revenue of $39.5 million for the third quarter 2012, up from $38.7 million for the third quarter 2011 mainly due to improved utilization from 47 less days offhire in the third quarter 2012 from fewer drydockings. Revenue for the nine months ended September 30, 2012 was $117.0 million compared to $116.6 million for the nine months ended September 30, 2011. There were 82 days offhire in nine months to September 30, 2012, of which 72 were for planned drydockings, compared to a total of 94 days offhire in the same period for 2011, of which 88 were for planned drydockings
  • Reported net income of $8.3 million for the third quarter 2012, after a $1.5 million non-cash interest rate derivative mark-to-market gain. For the third quarter 2011 the reported net loss was $0.9 million, after a $6.1 million non-cash mark-to-market loss. Normalized net income was $6.9 million for the third quarter 2012 compared to $5.2 million for the third quarter 2011, which excludes the mark-to-market items
  • For the nine months ended September 30, 2012, reported net income was $23.8 million, after a $5.1 million non-cash mark-to-market gain. The net loss of $1.8 million for the nine months ended September 30, 2011 was after a $13.6 million impairment charge relating to the fair value of purchase options on two vessels and a non-cash interest rate derivative mark-to-market loss of $4.9 million. Normalized net income for the nine months ended September 30, 2012 was $18.7 million, up from $16.8 million for the nine months ended September 30, 2011
  • Generated $26.9 million of Adjusted EBITDA for the third quarter 2012, up from $25.2 million for the third quarter 2011. Adjusted EBITDA for the nine months ended September 30, 2012 was $78.9 million, up from $77.1 million for the nine months ended September 30, 2011
  • New charters for two 4,113 TEU vessels commenced on September 20 and September 21, 2012 immediately on expiry of previous charters at $9,962 per vessel per day expiring May 23, 2013 plus/minus 22 days at charterer’s option
  • Agreed with lenders to waive the requirement to test the Leverage Ratio until December 1, 2014 and also to include all secured vessels in the test, whether subject to a charter or not
  • Repaid $23.0 million of bank debt during the third quarter of 2012; repaid $46.9 million in the nine months ended September 30, 2012 and $162.3 million since the fourth quarter 2009

About Global Ship Lease – GSL

Global Ship Lease (GSL) is a containership charter owner. Incorporated in the Marshall Islands, Global Ship Lease commenced operations in December 2007 with a business of owning and chartering out containerships under long-term, fixed rate charters to top tier container liner companies. Global Ship Lease owns 17 vessels with a total capacity of 66,349 TEU with an average age, weighted by TEU capacity, at September 30, 2012 of 8.6 years. All of the current vessels are fixed on charters to CMA CGM with an average remaining term of 6.4 years, or 7.6 years on a weighted basis.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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