Overseas Shipholding Group Reports Fourth Quarter and Full Year 2015 Results

NEW YORK--(BUSINESS WIRE)-- Overseas Shipholding Group, Inc. (OSG) (NYSE MKT: OSG, OSGB), a provider of oceangoing energy transportation services, today reported results for the fourth quarter and full year 2015.

Highlights

• Fourth quarter and full year 2015 time charter equivalent (TCE) revenues(A) of $234.4 million and $924.8 million, grew 18% and 21%, respectively, compared with the same periods in 2014.
• Net income for the fourth quarter was $9.3 million, or $0.02 per diluted share, compared with $26.5 million, or $0.05 per diluted share for the fourth quarter 2014. The decrease included $27.6 million in premiums and fees paid on notes repurchased.
• Net income for the full year 2015 was $284.0 million, or $0.49 per diluted share, compared with $(152.3) million, or $(0.60) per diluted share for the full year 2014.
• Fourth quarter and full year 2015 Adjusted EBITDA(B) was $122.9 million and $491.2 million, up 35% and 65%, respectively, from $90.9 million and $298.6 million in the same periods in 2014.
• Total cash(C) was $522.4 million as of December 31, 2015, including a $54.9 million cash refund from the Internal Revenue Service received in the fourth quarter 2015.
• Repurchased and retired $326 million in principal amount of unsecured notes in 2015, reducing 2016 annual cash interest expense by $25.6 million.
• Class A common stock began trading on the NYSE MKT on December 1st under the ticker symbol “OSG”, and now has approximately 135 million freely tradable shares.
• Repurchased and retired 2.9 million Class A common stock warrants at an average price of $2.92, of which 1.7 million settled in 2016.
• Repurchased and retired in February 2016 $27 million of the principal balance of its domestic term loan at a discounted price of $23.6 million.
• The Board has declared a dividend of $0.08 per share.

“We are pleased to report strong results for the 4th quarter and full year 2015,” said Captain Ian T. Blackley, OSG’s president and CEO. “The positive supply and demand fundamentals in the international tanker market, with ton-mile demand expansion in both crude and product sectors, along with the successful execution of our operating strategy drove impressive results in our International business. In our Domestic business, while Jones Act sentiment may have softened from a year ago, I am pleased to report stronger results for 2015 compared to 2014. The lower oil price has stimulated increased gasoline consumption in the United States and we have also seen increasing Domestic lightering volumes. In both our businesses, we expect that many of the positive tanker fundamentals we saw in 2015 should remain in place this year.

“The strong cash generation from our 79 vessel fleet and the successful execution of several key transactions have strengthened our financial position and provide us with maximum flexibility as we evaluate strategic alternatives. We see a disconnect today between freight rates, asset prices and equity values in our industry –this may offer opportunities that we believe we are well-positioned to capitalize on. I remain confident in our ability to increase value and, when appropriate, return value to our shareholders,” concluded Blackley.

Fourth Quarter & Full Year 2015 Results

TCE revenues grew to $234.4 million for the quarter, an increase of $35.5 million compared with the fourth quarter of 2014, driven by continuing strength in international crude and product spot market rates. TCE revenues grew to $924.8 million for the full year 2015, an increase of $163.5 million compared with the full year 2014.

Net income for the fourth quarter of 2015 was $9.3 million, or $0.02 per diluted share, compared with $26.5 million, or $0.05 per diluted share in the fourth quarter of 2014. The decrease included $27.6 million in bond premium and consent fees and related professional fees paid on notes repurchased. Net income for the full year 2015 was $284.0 million, or $0.49 per diluted share, compared to a net loss for the full year 2014 of $152.3 million. Included in the 2015 amount was a one-time, non-cash income tax benefit of $150.1 million and the net losses in the comparative 2014 period reflect bankruptcy related charges.

Adjusted EBITDA was $122.9 million for the quarter, an increase of $32.0 million compared with the fourth quarter of 2014, driven primarily by the strength of spot rates in the international crude and product markets. Adjusted EBITDA was $491.2 million for the full year 2015, an increase of $192.6 million compared with the full year 2014, driven primarily by those higher rates.

International Crude Tankers

TCE revenues for the International Crude Tankers segment were $84.2 million for the quarter, an increase of $32.9 million compared with the fourth quarter of 2014. This significant increase resulted from a substantial strengthening in daily rates across all vessel types in the segment, with the VLCC spot rate increasing to approximately $60,300 per day in the fourth quarter, nearly double from the comparable 2014 period; the Aframax spot rate increasing 72% to $34,000 per day; and the Panamax blended rate increasing 17% to $20,300 per day.

TCE revenues for the International Crude Tankers segment were $304.2 million for the full year 2015, an increase of $75.9 million compared with the full year 2014. For the full year 2015, the VLCC spot rate was approximately $54,600 per day; the Aframax spot rate $34,000 per day; and the Panamax blended rate $20,500 per day.

International Product Carriers

TCE revenues for the International Product Carriers segment were $35.7 million for the quarter, down 2% compared with the fourth quarter of 2014. This decrease was due to 430 less revenue days resulting from the sale of the Luxmar in July 2015, the redelivery of one time chartered-in vessel and an increase in drydock offhire days, which was partially offset by higher Medium Range (MR) spot rates. MR spot rates were approximately $18,100 per day in the fourth quarter, up 21% from the same period in 2014. TCE revenues for the International Product Carriers segment were $171.6 million for the full year 2015, an increase of $52.9 million compared with the full year 2014. MR spot rates were approximately $19,500 per day for the full year 2015.

U.S. Flag

TCE revenues for the U.S. Flag segment were $114.6 million for the quarter, an increase of $3.2 million compared with the fourth quarter of 2014, driven by a 5% increase in Jones Act Product Carrier TCE revenues. Additionally, the U.S. Flag segment benefited from increased Delaware Bay lightering volumes. TCE revenues for the U.S. Flag segment were $449.1 million for the full year 2015, up 8% compared with the full year 2014, driven by a $28.2 million increase in Jones Act Product Carrier TCE revenues, largely due to increased rates achieved on renewal of expiring time charters.

Conference Call

The Company will host a conference call to discuss its fourth quarter and full year 2015 results at 9:00 a.m. ET on Tuesday, March 1, 2016.

To access the call, participants should dial (866) 490-3149 for domestic callers and (707) 294-1567 for international callers. Please dial in ten minutes prior to the start of the call and enter Conference ID 54859058.

A live webcast of the conference call will be available from the Investor Relations section of the Company’s website at http://www.osg.com/

An audio replay of the conference call will be available starting at 12:00 p.m. ET on Tuesday, March 1, 2016 through 11:59 p.m. ET on Tuesday, March 8, 2016 by dialing (855) 859-2056 for domestic callers and (404) 537-3406 for international callers, and entering Conference ID 54859058.

About OSG

Overseas Shipholding Group, Inc. (NYSE MKT: OSG, OSGB) is a publicly traded tanker company providing energy transportation services for crude oil and petroleum products in the U.S. and International Flag markets. OSG is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world’s most customer-focused marine transportation companies and is headquartered in New York City, NY. More information is available at www.osg.com.

Forward-Looking Statements

This release contains forward looking statements. In addition, the Company may make or approve certain statements in future filings with the Securities and Exchange Commission (SEC), in press releases, or in oral or written presentations by representatives of the Company. All statements other than statements of historical facts should be considered forward-looking statements. These matters or statements may relate to the Company's prospects, including statements regarding trends in the tanker and articulated tug/barge markets, and including prospects for certain strategic alliances and investments. Forward-looking statements are based on the Company’s current plans, estimates and projections, and are subject to change based on a number of factors. Investors should carefully consider the risk factors outlined in more detail in the Company’s Annual Report for 2015 on Form 10-K under the caption “Risk Factors” and in similar sections of other filings made by the Company with the SEC from time to time. The Company assumes no obligation to update or revise any forward looking statements. Forward looking statements and written and oral forward looking statements attributable to the Company or its representatives after the date of this release are qualified in their entirety by the cautionary statements contained in this paragraph and in other reports previously or hereafter filed by the Company with the SEC.

A, B, CReconciliations of these non-GAAP financial measures are included in the financial tables attached to this press release starting on Page 9.

	Consolidated Statements of Operations
	($ in thousands, except per share amounts)
					Three Months Ended December 31,											Fiscal Year Ended December 31,
					2015							2014					2015					2014
	Shipping Revenues:				(unaudited)						(unaudited)
	Pool revenues				$93,061						$	62,357				$	360,218				$	180,813
	Time and bareboat charter revenues				108,482							105,199					437,298					392,669
	Voyage charter revenues				42,182							49,372					166,990					383,952
	Total Shipping Revenues				243,725							216,928					964,506					957,434
	Operating Expenses:
	Voyage expenses				9,310							18,007					39,658					196,075
	Vessel expenses				74,138							67,389					282,104					268,852
	Charter hire expenses				33,659							31,901					128,677					152,016
	Depreciation and amortization				44,082							38,365					157,813					151,758
	General and administrative				21,040							20,687					79,169					83,716
	Technical management transition costs				(1			)				741					39					3,427
	Severance and relocation costs				(5			)				(1,340	)				-					17,020
	(Gain)/Loss on disposal of vessels and other property				7							(6,298	)				(4,251	)				(10,532	)
	Total Operating Expenses				182,230							169,452					683,209					862,332
	Income from vessel operations				61,495							47,476					281,297					95,102
	Equity in income of affiliated companies				14,109							11,911					49,329					41,355
	Operating income				75,604							59,387					330,626					136,457
	Other (expense)/income				(24,329			)				48					(26,171	)				426
	Income before interest expense, reorganization items and income taxes				51,275							59,435					304,455					136,883
	Interest expense				(26,644			)				(28,746	)				(113,335	)				(232,491	)
	Income/(loss) before reorganization items and income taxes				24,631							30,689					191,120					(95,608	)
	Reorganization items, net				(1,708			)				(6,338	)				(8,052	)				(171,473	)
	Income/(loss) before income taxes				22,923							24,351					183,068					(267,081	)
	Income tax benefit/(expense)				(13,656			)				2,179					100,892					114,808
	Net Income/(Loss)				$9,267						$	26,530				$	283,960				$	(152,273	)
	Weighted Average Number of Common Shares Outstanding:
	Basic - Class A				573,595,277							573,423,113					573,507,354					234,082,322
	Diluted – Class A				574,317,143							573,467,936					573,744,543					234,082,322
	Basic and Diluted - Class B				7,919,840							7,925,960					7,922,020					21,372,197
	Per Share Amounts:
	Basic and diluted net income/(loss) - Class A and Class B				$	0.02	$0.05									$	0.49				$	(0.60	)

On December 17, 2015, all shareholders of record of the Company’s Class A and B common stock as of December 3, 2015, received a dividend of one-tenth of one share of Class A common stock for each share of Class A common stock and Class B common stock held by them as of the record date. In accordance with the relevant accounting guidance, the Company is required to adjust the computations of basic and diluted earnings per share retroactively for all periods presented to reflect that change in capital structure.

	Consolidated Balance Sheets
	($ in thousands)
					December 31, 2015				December 31, 2014
	ASSETS
	Current Assets:
	Cash and cash equivalents				$	502,836			$	389,226
	Restricted cash					10,583				53,085
	Voyage receivables					81,612				101,513
	Income tax recoverable					1,664				55,856
	Other receivables					7,195				8,293
	Inventories					3,926				7,987
	Prepaid expenses and other current assets					16,115				16,303
	Total Current Assets					623,931				632,263
	Restricted cash – non current1					8,989				70,093
	Vessels and other property, less accumulated depreciation					2,084,859				2,213,217
	Deferred drydock expenditures, net					95,241				62,413
	Total Vessels, Deferred Drydock and Other Property					2,180,100				2,275,630
	Investments in and advances to affiliated companies					348,718				334,863
	Intangible assets, less accumulated amortization					50,217				54,817
	Other assets					62,997				63,513
	Total Assets				$	3,274,952			$	3,431,179
	LIABILITIES AND EQUITY
	Current Liabilities:
	Accounts payable, accrued expenses and other current liabilities				$	91,233			$	96,066
	Income taxes payable					13				906
	Current installments of long-term debt					63,039				12,314
	Total Current Liabilities					154,285				109,286
	Reserve for uncertain tax positions					2,520				34,520
	Long-term debt					1,267,766				1,656,353
	Deferred income taxes2					208,195				277,965
	Other liabilities					61,698				66,968
	Total Liabilities					1,694,464				2,145,092
	Equity:
	Total Equity					1,580,488				1,286,087
	Total Liabilities and Equity				$	3,274,952			$	3,431,179

1 The December 31, 2014 balance sheet has been revised from that previously reported in the Annual Report on Form 10-K to reflect the correction of an error by reclassifying restricted cash of $70,093 from current assets to non-current assets and to reflect a corresponding reduction in the previously reported amount for total current assets. The error had no impact on the Company’s consolidated statements of operations, comprehensive loss, changes in equity/(deficit) or cash flows.

2 The Company adopted ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which provides for the classification of all deferred tax assets and liabilities as noncurrent amounts, as of December 31, 2015 and applied the guidance retrospectively for December 31, 2014. For December 31, 2014, the Company previously reported a current deferred tax asset of $5,312 and noncurrent deferred tax liabilities of $283,277; the retrospective adoption of this accounting standard resulted in noncurrent deferred tax liabilities of $277,965

	Consolidated Statements of Cash Flows
	($ in thousands)
					Fiscal Year Ended December 31,
						2015					2014
	Cash Flows from Operating Activities:
	Net income/(loss)				$	283,960				$	(152,273	)
	Items included in net income/(loss) not affecting cash flows:
	Depreciation and amortization					157,813					151,758
	Amortization of debt discount and other deferred financing costs					10,989					3,973
	Compensation relating to restricted stock and stock option grants					4,412					1,009
	Deferred income tax benefit					(69,564	)				(82,432	)
	Undistributed earnings of affiliated companies					(39,052	)				(32,534	)
	Deferred payment obligations on charters-in					590					3,232
	Reorganization items, non-cash					(50	)				23,715
	Other – net					1,971					2,139
	Items included in net income/(loss) related to investing and financing activities:
	Gain on disposal of vessels and other property – net					(4,251	)				(10,532	)
	Payments for drydocking					(62,051	)				(37,817	)
	Bankruptcy and IRS claim payments					(8,343	)				(584,369	)
	Deferred financing costs paid for loan modification					(9,765	)				-
	Changes in other operating assets and liabilities					32,413					(13,018	)
	Net cash provided by/(used in) operating activities					299,072					(727,149	)
	Cash Flows from Investing Activities:
	Change in restricted cash					103,606					(123,178	)
	Expenditures for vessels and vessel improvements					(1,017	)				(32,412	)
	Proceeds from disposal of vessels and other property					17,058					78,426
	Expenditures for other property					(75	)				(489	)
	Investments in and advances to affiliated companies					(153	)				(278	)
	Repayments of advances from affiliated companies					37,500					30,000
	Other – net					(383	)				593
	Net cash provided by / (used in) investing activities					156,536					(47,338	)
	Cash Flows from Financing Activities:
	Issuance of common stock, net of issuance costs					-					1,510,000
	Issuance of debt, net of issuance and deferred financing costs					-					1,176,664
	Payments on debt, including adequate protection payments					(12,314	)				(2,124,716	)
	Repurchase of debt					(326,051	)				-
	Repurchase of common stock warrants					(3,633	)				-
	Purchases of treasury stock					-					(162	)
	Net cash (used in)/provided by financing activities					(341,998	)				561,786
	Net increase/(decrease) in cash and cash equivalents					113,610					(212,701	)
	Cash and cash equivalents at beginning of year					389,226					601,927
	Cash and cash equivalents at end of year				$	502,836				$	389,226

Spot and Fixed TCE Rates Achieved and Revenue Days

The following tables provide a breakdown of TCE rates achieved for spot and fixed charters and the related revenue days for the three months and fiscal year ended December 31, 2015 and the comparable periods of 2014. Revenue days in the quarter ended December 31, 2015 totaled 6,270 compared with 6,919 in the prior year quarter. Revenue days in the fiscal year ended December 31, 2015 totaled 25,580 compared with 29,386 in the prior year. A summary fleet list by vessel class can be found later in this press release.

					Three Months Ended December 31, 2015											Three Months Ended December 31, 2014
					Spot				Fixed				Total			Spot				Fixed				Total
	International Crude Tankers
	ULCC
	Average TCE Rate				$	—			$	39,000						$	—			$	—
	Number of Revenue Days					—				92			92				—				—			—
	VLCC
	Average TCE Rate				$	60,340			$	—						$	31,376			$	—
	Number of Revenue Days					701				—			701				792				—			792
	Aframax
	Average TCE Rate				$	34,032			$	—						$	19,827			$	—
	Number of Revenue Days					625				—			625				696				—			696
	Panamax
	Average TCE Rate				$	22,560			$	17,455						$	23,414			$	12,359
	Number of Revenue Days					383				293			676				367				445			812
	Other Intl. Crude Tankers Revenue Days1					59				—			59				—				—			—
	Total Intl. Crude Tankers Revenue Days					1,768				385			2,153				1,855				445			2,300
	International Product Carriers
	Aframax Product Carriers
	Average TCE Rate				$	27,576			$	—						$	18,855			$	—
	Number of Revenue Days					92				—			92				89				—			89
	Panamax Product Carriers
	Average TCE Rate				$	26,718			$	16,779						$	25,388			$	14,249
	Number of Revenue Days					54				143			197				92				274			366
	Handysize Product Carriers
	Average TCE Rate				$	18,099			$	5,294						$	14,908			$	10,112
	Number of Revenue Days					1,638				92			1,730				1,810				184			1,994
	Total Intl. Product Carriers Revenue Days					1,784				235			2,019				1,991				458			2,449
	U.S. Flag
	Jones Act Handysize Product Carriers
	Average TCE Rate				$	—			$	64,193						$	—			$	59,890
	Number of Revenue Days					—				1,082			1,082				—				1,104			1,104
	Non-Jones Act Handysize Product Carriers
	Average TCE Rate				$	34,704			$	16,630						$	34,347			$	12,949
	Number of Revenue Days					146				38			184				153				30			183
	ATBs
	Average TCE Rate				$	—			$	38,216						$	—			$	37,945
	Number of Revenue Days					—				665			665				—				697			697
	Lightering
	Average TCE Rate				$	83,320			$	—						$	70,790			$	—
	Number of Revenue Days					167				—			167				186				—			186
	Total U.S. Flag Revenue Days					313				1,785			2,098				339				1,831			2,170
	TOTAL REVENUE DAYS					3,865				2,405			6,270				4,185				2,734			6,919

					Fiscal Year Ended December 31, 2015									Fiscal Year Ended December 31, 2014
					Spot			Fixed			Total			Spot			Fixed			Total
	International Crude Tankers
	ULCC
	Average TCE Rate				$ —			$ 39,000						$ —			$ —
	Number of Revenue Days				—			275			275			—			—			—
	VLCC
	Average TCE Rate				$54,591			$ —						$25,803			$16,748
	Number of Revenue Days				2,672			—			2,672			3,484			10			3,494
	Suezmax
	Average TCE Rate				$ —			$ —						$15,603			$ —
	Number of Revenue Days				—			—			—			38			—			38
	Aframax
	Average TCE Rate				$34,042			$ —						$20,440			$ —
	Number of Revenue Days				2,439			—			2,439			3,702			—			3,702
	Panamax
	Average TCE Rate				$25,226			$15,462						$22,414			$12,064
	Number of Revenue Days				1,432			1,362			2,794			1,443			1,765			3,208
	Other Intl. Crude Tankers Revenue Days1				77			—			77			1,067			—			1,067
	Total Intl. Crude Tankers Revenue Days				6,620			1,637			8,257			9,734			1,775			11,509
	International Product Carriers
	Aframax Product Carriers
	Average TCE Rate				$32,075			$ —						$16,094			$ —
	Number of Revenue Days				365			—			365			146			—			146
	Panamax Product Carriers
	Average TCE Rate				$27,465			$17,337						$27,050			$13,829
	Number of Revenue Days				327			929			1,256			374			1,063			1,437
	Handysize Product Carriers
	Average TCE Rate				$19,490			$7,004						$12,036			$10,630
	Number of Revenue Days				6,949			442			7,391			7,101			776			7,877
	Total Intl. Product Carriers Revenue Days				7,641			1,371			9,012			7,621			1,839			9,460
	U.S. Flag
	Jones Act Handysize Product Carriers
	Average TCE Rate				$ —			$64,350						$ —			$58,478
	Number of Revenue Days				—			4,260			4,260			—			4,205			4,205
	Non-Jones Act Handysize Product Carriers
	Average TCE Rate				$29,453			$15,958						$27,487			$13,528
	Number of Revenue Days				535			164			699			656			73			729
	ATBs
	Average TCE Rate				$ —			$38,605						$ —			$35,372
	Number of Revenue Days				—			2,700			2,700			—			2,750			2,750
	Lightering
	Average TCE Rate				$79,209			$ —						$70,316			$ —
	Number of Revenue Days				652			—			652			733			—			733
	Total U.S. Flag Revenue Days				1,187			7,124			8,311			1,389			7,028			8,417
	TOTAL REVENUE DAYS				15,448			10,132			25,580			18,744			10,642			29,386

1 Other International Crude Tankers revenue days consists of the Company’s International Flag Lightering full service revenue days for the quarters and fiscal years ended December 31, 2015 and December 31, 2014.

Fleet Information

As of December 31, 2015, OSG’s owned and operated fleet totaled 79 International Flag and U.S. Flag vessels (62 vessels owned and 17 chartered-in) compared with 81 at December 31, 2014. Those figures include vessels in which the Company has a partial ownership interest through its participation in joint ventures.

					Vessels Owned						Vessels Chartered-in						Total at December 31, 2015
	Vessel Type				Number			Weighted byOwnership			Number			Weighted byOwnership			Total Vessels			VesselsWeighted byOwnership			Total Dwt2
	Operating Fleet
	FSO				2			1.0			—			—			2			1.0			873,916
	VLCC and ULCC				9			9.0			—			—			9			9.0			2,875,798
	Aframax				7			7.0			—			—			7			7.0			787,859
	Panamax				8			8.0			—			—			8			8.0			557,187
	International Flag Crude Tankers				26			25.0			—			—			26			25.0			5,094,760
	LR2				1			1.0			—			—			1			1.0			109,999
	LR1				4			4.0			—			—			4			4.0			297,705
	MR				13			13.0			7			7.0			20			20.0			955,979
	International Flag Product Carriers				18			18.0			7			7.0			25			25.0			1,363,683
	Total Int’l Flag Operating Fleet				44			43.0			7			7.0			51			50.0			6,458,443
	Handysize Product Carriers 1				4			4.0			10			10.0			14			14.0			664,490
	Clean ATBs				8			8.0			—			—			8			8.0			226,064
	Lightering ATBs				2			2.0			—			—			2			2.0			91,112
	Total U.S. Flag Operating Fleet				14			14.0			10			10.0			24			24.0			981,666
	LNG Fleet				4			2.0			—			—			4			2.0			864,800 cbm
	Total Operating Fleet				62			59.0			17			17.0			79			76.0			7,440,109and864,800 cbm

1 Includes two owned shuttle tankers, one chartered in shuttle tanker and two owned U.S. Flag Product Carriers that trade internationally.

2 Total Dwt is defined as the total deadweight of all 79 vessels.

Reconciliation to Non-GAAP Financial Information

The Company believes that, in addition to conventional measures prepared in accordance with GAAP, the following non-GAAP measures may provide certain investors with additional information that will better enable them to evaluate the Company’s performance. Accordingly, these non-GAAP measures are intended to provide supplemental information, and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP.

(A) Time Charter Equivalent (TCE) Revenues

Consistent with general practice in the shipping industry, the Company uses TCE revenues, which represents shipping revenues less voyage expenses, as a measure to compare revenue generated from a voyage charter to revenue generated from a time charter. Time charter equivalent revenues, a non-GAAP measure, provides additional meaningful information in conjunction with shipping revenues, the most directly comparable GAAP measure, because it assists Company management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. Reconciliation of TCE revenues of the segments to shipping revenues as reported in the consolidated statements of operations follow:

					Three Months Ended December 31,							Fiscal Year Ended December 31,
	($ in thousands)				2015			2014			2015				2014
	TCE revenues				$234,415			$198,921			$924,848				$761,359
	Add: Voyage Expenses				9,310			18,007			39,658				196,075
	Shipping revenues				$243,725			$216,928			$964,506				$957,434

(B) EBITDA and Adjusted EBITDA

EBITDA represents net (loss)/income before interest expense, income taxes and depreciation and amortization expense. Adjusted EBITDA consists of EBITDA adjusted for the impact of certain items that we do not consider indicative of our ongoing operating performance. EBITDA and Adjusted EBITDA do not represent, and should not be considered a substitute for, net (loss)/income or cash flows from operations as determined in accordance with GAAP. Some of the limitations are: (i) EBITDA and Adjusted EBITDA do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments; (ii) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs; and (iii) EBITDA and Adjusted EBITDA do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debt. While EBITDA and Adjusted EBITDA are frequently used by companies as a measure of operating results and performance, neither of those items as prepared by the Company is necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. The following table reconciles net income/(loss), as reflected in the consolidated statements of operations, to EBITDA and Adjusted EBITDA:

					Three Months Ended December 31,							Fiscal Year Ended December 31,
	($ in thousands)				2015			2014				2015			2014
	Net Income/(loss)				$9,267			$26,530				$283,960			$ (152,273)
	Income tax expense/(benefit)				13,656			(2,179)				(100,892)			(114,808)
	Interest expense				26,644			28,746				113,335			232,491
	Depreciation and amortization				44,082			38,365				157,813			151,758
	EBITDA				93,649			91,462				454,216			117,168
	Technical management transition costs				(1)			741				39			3,427
	Severance and relocation costs				(5)			(1,340)				-			17,020
	(Gain)/loss on disposal of vessels and other property				7			(6,298)				(4,251)			(10,532)
	Loss on repurchase of debt				24,477			-				26,516			-
	Other costs associated with repurchase of debt				3,099			-				3,099			-
	Write-off of registration statement costs				-			-				3,493			-
	Reorganization items, net				1,708			6,338				8,052			171,473
	Adjusted EBITDA				$122,934			$90,903				$491,164			$298,556

(C) Total Cash

	($ in thousands)				December 31, 2015			December 31, 2014
	Cash and cash equivalents				$502,836			$389,226
	Restricted cash				19,572			123,178
	Total Cash				$522,408			$512,404

View source version on businesswire.com: http://www.businesswire.com/news/home/20160301005863/en/

For Overseas Shipholding Group, Inc.:
Investor Relations & Media:
Brian Tanner, 212-578-1645
[email protected]

Source: Overseas Shipholding Group, Inc.

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