Insweb Corp (INSW) Misses Q1 EPS by 44c, Miss on Revenues

Insweb Corp (NYSE: INSW) reported Q1 EPS of ($1.01), $0.44 worse than the analyst estimate of ($0.57). Revenue for the quarter came in at $51.98 million versus the consensus estimate of $56.6 million.

Highlights

• Net loss for the first quarter was $29.3 million, or $1.01 per share, compared to net income of $18.1 million, or $0.62 per share, in the first quarter of 2017. The net loss for the first quarter includes a $6.6 million loss from the sale of four vessels. Net loss excluding the loss from vessel sales was $22.7 million, or $0.78 per share.
• Time charter equivalent (TCE) revenues(A) for the first quarter were $48.8 million, compared to $84.1 million in the first quarter of 2017.
• Adjusted EBITDA(B) for the first quarter was $6.5 million, compared to $46.6 million in the same period of 2017.
• Cash(C) was $91.2 million as of March 31, 2018; total liquidity was $141.2 million, including $50 million undrawn revolver.
• The Company’s FSO joint ventures closed on a credit facility in April 2018; International Seaways received $110 million in proceeds from the drawdown of the facility.
• Delivered a 2002-built MR and a 2004-built MR to buyers in January and February, respectively.
• Agreed to sell an older VLCC during the first quarter, which delivered to buyers in April.
• Completed sale and leaseback transactions for two 2009-built Aframaxes in March.
• Subsequent to the end of the quarter, agreed to sell a 2001-built Aframax, a 2004-built MR and a 2003-built ULCC. The MR delivered to buyers in April.

“During the first quarter, we maintained our lean and scalable model with low breakevens, continued to benefit from our contracted fixed-rate charters, and increased our cash position to $91.2 million,” said Lois K. Zabrocky, International Seaways’ president and CEO. “We also continued to execute on our fleet growth and renewal strategy in 2018 year to date, highlighted by the sale of four vessels with an average age of 15.4 years. We also have taken important steps to enhance our financial flexibility ahead of the anticipated second quarter closing of the acquisition of six VLCCS, which is expected to increase the size of the Company’s fleet by 23% on a deadweight ton basis, following the recent sale of older vessels. While preparing these vessels for sale resulted in a reduction in revenue and increased costs in the near term, the sales generated substantial additional liquidity for the acquisition and balance sheet. We are pleased to add highly-efficient modern sister ships to our fleet, positioning the Company to significantly reduce its fleet’s age and enhance its earnings power.”

Ms. Zabrocky continued, “We are pleased to have recently closed on an attractive credit facility for our FSO joint ventures, which provides the Company with $110 million in proceeds and underscores the sizable contracted cash flows these vessels generate and the significant value of these assets. We believe we are well-positioned to complete the six-vessel acquisition based on our success increasing the Company’s liquidity position, combined with the expected assumption of the debt currently secured by the vessels. Going forward, we expect our balanced fleet deployment strategy and moderate level of predictable cash flows to enable International Seaways to both optimize revenue through the current tanker cycle and capitalize on the market recovery in both the crude and the product tanker sectors.”

For earnings history and earnings-related data on Insweb Corp (INSW) click here.

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