International Shipholding Corporation Reports First Quarter 2013 Results

  International Shipholding Corporation Reports First Quarter 2013 Results

              Declares first quarter dividend of $0.25 per share

Business Wire

MOBILE, Ala. -- April 24, 2013

International Shipholding Corporation (NYSE: ISH) today announced the
financial results for the quarter ended March 31, 2013.

First Quarter 2013 Highlights

  *Reported net income of $1.7 million for the three months ended March 31,
    2013
  *Acquired a resale of an existing newbuilding contract for one “eco” design
    Handysize Bulkcarrier for delivery in the first half of 2015
  *Successfully placed $25 million of Series A Cumulative Redeemable
    Perpetual Preferred Stock
  *Declared a first quarter dividend of $0.25 per share of Common Stock
    payable on June 3, 2013 to shareholders of record as of May 16, 2013

Net Income

The Company reported net income of $1.7 million for the three months ended
March 31, 2013, which included a non-operating gain of $3.2 million from its
Yen denominated loan. For the comparable three months ended March 31, 2012,
the Company reported net income of $7.9 million which included non-operating
gains of $3.8 million and $3.6 million from the sale of two International Flag
Pure Car Truck Carriers and its Yen denominated loan, respectively.

Mr. Niels M. Johnsen, Chairman and Chief Executive Officer, stated: “During
the quarter, we generated significant revenue from our fixed contracts while
taking steps to position the Company for future growth. Specifically, we
raised $25 million in a public offering, strengthening our balance sheet and
enabling management to reactivate a tug-barge unit that was acquired in the
United Ocean Services transaction. In addition, we further enhanced our
strategic position in the Handysize Bulkcarrier market by acquiring a resale
of an existing newbuilding contract for an ‘eco’ Handysize vessel that is
scheduled for delivery in the first half of 2015. Although the current dry
bulk market has been challenging, we believe the medium to long-term prospects
remain positive and the current environment will provide attractive
acquisition opportunities.”

Mr. Johnsen continued, “Our cash flows in the period benefited from a full
quarter of fixed revenues from our United Ocean Services operations, which
have strengthened our overall contract coverage. With a majority of our fleet
operating on medium to long-term charters, we remain well positioned to
provide value for our shareholders through our dividend policy. To that end,
our Board of Directors declared a first quarter dividend of $0.25 per share,
in line with our $1.00 per share target for 2013.”

Gross Voyage Profit

The Company’s gross voyage profit representing the results of its six
reporting segments was $11.3 million compared to $14.4 million in the 2012
three month period. The comparable results by operating segment are shown
below.

                       Pure Car  Dry Bulk              Specialty         
                Jones    Truck      Carriers   Rail-Ferry   Contracts   Other    Total
                Act      Carriers
                (All Amounts in
                Millions)
First Quarter
2013
Gross Voyage    $6.3     $4.2       ($1.2)     $1.5         $0.2        $0.3     $11.3
Profit
                                                                                 
Depreciation    ($1.1)  ($2.0)    ($1.7)    ($0.5)      ($0.5)     $0.0    ($5.8)
Gross Profit    $5.2    $2.2      ($2.9)    $1.0        ($0.3)     $0.3    $5.5
(After
Depreciation)
                                                                                 
First Quarter
2012
Gross Voyage    ($0.4)   $8.5       $1.3       $0.7         $4.1        $0.2     $14.4
Profit
                                                                                 
Depreciation    ($0.3)  ($3.5)    ($1.4)    ($0.7)      ($0.5)     ($0.0)  ($6.4)
Gross Profit    ($0.7)  $5.0      ($0.1)    $0.0        $3.6       $0.2    $8.0
(After
Depreciation)
                                                                                 
Variance
Gross Voyage    $6.7     ($4.3)     ($2.5)     $0.8         ($3.9)      $0.1     ($3.1)
Profit
Depreciation    ($0.8)  $1.5      ($0.3)    $0.2        $0.0       $0.0    $0.6
Gross Profit    $5.9    ($2.8)    ($2.8)    $1.0        ($3.9)     $0.1    ($2.5)

(See below Exhibit 99.2 to reconcile numbers presented above to GAAP figures.)


The improved gross voyage profit for the Jones Act segment reflects the
results of United Ocean Services (“UOS”) which was acquired in late 2012, as
well as a higher tonnage level moved by the Sulphur Carrier vessel in the
first quarter of 2013. Gross voyage profit on the Pure Car Truck Carrier
(“PCTC”) segment was lower due primarily to a fewer number of vessels
operating in this segment and a lower charter hire rate on one of its U.S.
Flag PCTCs partially offset by slightly better supplemental cargo volumes. The
lower results of the Dry Bulk Carrier segment reflect the overall depressed
dry bulk market as well as the termination during the quarter of the charter
on our cape size vessel, which is now operating under a revenue sharing
agreement. The Rail Ferry segment improved its gross voyage results due to
slightly better margins and the results from its rail car repair facility
which was acquired in the latter part of 2012. The Specialty Contracts segment
reported a decrease in gross voyage profit due primarily to the termination of
the three operating contracts with the government, which occurred in the first
quarter of 2012, and the redelivery of the ice-strengthened vessel from its
government contract. The Company’s Other segment reported comparable year over
year results.

Administrative and General

Administrative and general expenses incurred in the first quarter of 2013 were
at comparable levels to the same period of 2012. Higher expenses associated
with the integration of UOS were offset by lower professional services during
the period.

Interest and Other

Interest expense for the three months ended March 31, 2013, was approximately
$526,000 lower than the comparable three months in 2012. Debt service was
reduced from the proceeds on the sale of the two International Flag PCTCs and
the two U.S. Flag PCTCs sold and leased back, as well as regularly scheduled
debt payments. During the three months ended March 31, 2013, the Japanese Yen
weakened in relation to the U.S. Dollar from 86.74 to 94.22, producing an
exchange gain of $3.2 million.

Balance Sheet

The Company’s working capital at March 31, 2013, was $15.0 million, an
increase of $3.0 million from 2012 year end. The increase in the quarter was
driven primarily from cash flow generated from a prepayment of the charter
hire on the Company’s self-loading coal carrier and net proceeds from its
Series A Preferred Stock. Cash and cash equivalents balance was approximately
$31.0 million. During the quarter the Company successfully completed a $25
million capital raise through the issuance of its Series A Cumulative
Redeemable Perpetual Preferred Stock. The Company’s total debt obligations, at
March 31, 2013, was approximately $216 million while EBITDA^1 generated during
the twelve (12) month period ended March 31, 2013, was approximately $65.5
million.

Dividend Declaration

The Company’s Board of Directors on April 10, 2013, approved a dividend
payment of a $1.79 on its Series A Preferred Stock. The Board of Directors
declared a $0.25 dividend payable on June 3, 2013, for each share of common
stock owned on the record date of May 16, 2013. All future common stock
dividend declarations and amounts remain subject to the discretion of
International Shipholding Corporation’s Board of Directors.

Outlook

The Company reaffirms its 2013 Net Income, before preferred stock dividends,
between $10 and $12 million and EBITDA within a $63 and $67 million range.

Conference Call

In connection with this earnings release, management will host an earnings
conference call on Thursday, April 25, 2013, at 10:00 AM ET. To participate in
the conference call, please dial (888) 724-9496 (domestic) or (913) 312-0653
(international). Participants can reference the International Shipholding
Corporation First Quarter 2013 Earnings Call or passcode 8807370. Please dial
in approximately 5 minutes prior to the call.

The conference call will also be available via a live listen-only webcast and
can be accessed through the Investor Relations section of the Company’s
website, www.intship.com. Please allow extra time prior to the call to visit
the Company’s website and download any software that may be needed to listen
to the webcast.

A replay of the conference call will be available through May 2, 2013, at
(877) 870-5176 (domestic) or (858) 384-5517 (international). The passcode for
the replay is 8807370.

About International Shipholding

International Shipholding Corporation, through its subsidiaries, operates a
diversified fleet of U.S. and International flag vessels that provide
worldwide and domestic maritime transportation services to commercial and
governmental customers primarily under medium to long-term charters and
contracts. www.intship.com

Caution concerning forward-looking statements

Except for the historical and factual information contained herein, the
matters set forth in this release, including statements regarding our 2013
guidance, the expected benefits of the UOS acquisition and other statements
identified by words such as “estimates,” “expects,” “anticipates,” “plans,”
and similar expressions, are forward-looking statements within the meaning of
the “safe harbor” provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are based on current expectations
only, and are subject to a number of risks and uncertainties, many of which
are beyond our control. Actual events and results may differ materially from
those anticipated, estimated or projected if one or more of these risks or
uncertainties materialize, or if underlying assumptions prove incorrect.
Factors that could affect actual results include but are not limited to: our
ability to maximize the usage of our newly-purchased and incumbent vessels and
other assets on favorable economic terms, including our ability to renew our
time charters and contracts when they expire and to maximize our carriage of
supplemental cargoes; our ability to effectively handle our leverage by
servicing and complying with each of our debt instruments; changes in domestic
or international transportation markets that reduce the demand for shipping
generally or our vessels in particular; industry-wide changes in cargo freight
rates, charter rates, vessel design, vessel utilization or vessel valuations,
or in charter hire, fuel or other operating expenses; the possibility that the
anticipated benefits from the UOS acquisition cannot be fully realized or may
take longer to realize than expected; political events in the United States
and abroad, the appropriation of funds by the U.S. Congress, and terrorism,
piracy and trade restrictions; the effects of more general factors, such as
changes in interest rates, in tax laws or rates, in foreign currency rates, or
in general market, labor or economic conditions; and each of the other
economic, competitive, governmental, and technological factors detailed in our
reports filed with the Securities and Exchange Commission. You should be aware
that new factors may emerge from time to time and it is not possible for us to
identify all such factors nor can we predict the impact of each such factors
on our business or the extent to which any one or more factors may cause
actual results to differ from those reflected in any forward-looking
statements. Accordingly, you are cautioned not to place undue reliance upon
any of our forward-looking statements, which speak only as of the date made.
We undertake no obligation to update or revise for any reason any
forward-looking statements made by us or on our behalf, whether as a result of
new information, future events or developments, changed circumstances or
otherwise.

Non-GAAP Reconciliation
(By Segment)

(All Amounts    Jones   Pure Car  Dry     Rail-   Specialty         
in Millions)
                 Act     Truck     Bulk    Ferry   Contracts  Other   Total
                          Carriers
                                                                            
First Quarter
2013
Gross Profit     $5.2     $2.2       ($2.9)   $1.0     ($0.3)      $0.3     $5.5
                                                                            
Allocated        ($2.7)   ($1.9)     $0.0     ($0.6)   ($0.1)      ($0.2)   ($5.5)
Overhead
*Add Back:
Unconsolidated   $0.0    $0.0      $0.3    $0.0    $0.0       $0.0    $0.3
Entities
Operating        $2.5    $0.3      ($2.6)  $0.4    ($0.4)     $0.1    $0.3
Income
                                                                            
                                                                            
First Quarter
2012
Gross profit     ($0.7)   $5.0       ($0.1)   $0.0     $3.6        $0.2     $8.0
                                                                            
Allocated        $0.0     ($3.2)     ($0.5)   ($0.3)   ($1.5)      ($0.1)   ($5.6)
Overhead
Gain on Sale     $0.0     $3.8       $0.0     $0.0     $0.0        $0.0     $3.8
of Assets
*Add Back:
Unconsolidated   $0.0    $0.0      $0.0    $0.1    $0.0       $0.0    $0.1
Entities
Operating        ($0.7)  $5.6      ($0.6)  ($0.2)  $2.1       $0.1    $6.3
Income

* To remove the effect of including the results of the unconsolidated entities in
Gross Voyage Profit

Exhibit 99.2


^1 EBITDA represents the Company’s Earnings Before Interest, Taxes,
Depreciation and Amortization.

INTERNATIONAL SHIPHOLDING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(All Amounts in Thousands Except Share Data)
(Unaudited)

                                                Three Months Ended March 31,
                                                 2013           2012
Revenues                                         $ 81,124        $ 65,204
                                                                 
Operating Expenses:
Voyage Expenses                                    69,591          50,826
Vessel Depreciation                                5,771           6,357
Other Depreciation                                 23              -
Administrative and General Expenses                5,433           5,508
Gain on Sale of Other Assets                      -             (3,799    )
                                                                 
Total Operating Expenses                          80,818        58,892    
                                                                 
Operating Income                                  306           6,312     
                                                                 
Interest and Other:
Interest Expense                                   2,201           2,727
Derivative Gain                                    (77       )     (149      )
Gain on Sale of Investment                         -               (42       )
Other Income from Vessel Financing                 (555      )     (622      )
Investment Income                                  (40       )     (128      )
Foreign Exchange Gain                             (3,181    )    (3,648    )
                                                  (1,652    )    (1,862    )
                                                                 
                                                                 
Income Before Provision for Income Taxes and
Equity in Net Loss of Unconsolidated Entities     1,958         8,174     
                                                                 
Provision for Income Taxes:
Current                                           35            168       
                                                  35            168       
                                                                 
Equity in Net Loss of Unconsolidated
Entities (Net of Applicable Taxes)                (270      )    (70       )
                                                                 
Net Income                                       $ 1,653        $ 7,936     
                                                                 
Preferred Stock Dividends                         251           -         
                                                                 
Net Income Available to Common Stockholders      $ 1,402        $ 7,936     
                                                                 
Basic and Diluted Earnings Per Common Share:
                                                                
Basic Earnings Per Common Share:                 $ 0.19         $ 1.11      
                                                                
Diluted Earnings Per Common Share:               $ 0.19         $ 1.11      
                                                                 
Weighted Average Shares of Common Stock
Outstanding:
Basic                                              7,212,901       7,170,611
Diluted                                            7,233,400       7,170,611
                                                                 
Dividends Per Common Share                       $ 0.250         $ 0.250


INTERNATIONAL SHIPHOLDING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(All Amounts in Thousands)
(Unaudited)

                                                  March 31,     December 31,
ASSETS                                             2013           2012
                                                                    
                                                                    
Cash and Cash Equivalents                          $ 30,761       $ 19,868
Restricted Cash                                      8,000          8,000
Accounts Receivable, Net of Allowance for            38,291         32,891
Doubtful Accounts
Net Investment in Direct Financing Leases            -              3,540
Other Current Assets                                 7,271          8,392
Notes Receivable                                     4,412          4,383
Material and Supplies Inventory                      11,143        11,847   
Total Current Assets                                 99,878        88,921   
                                                                    
Investment in Unconsolidated Entities                12,530        12,676   
                                                                    
Net Investment in Direct Financing Leases            -             13,461   
                                                                    
Vessels, Property, and Other Equipment, at Cost:
Vessels                                              541,617        525,172
Building                                             1,211          1,211
Land                                                 623            623
Leasehold Improvements                               26,348         26,348
Construction in Progress                             6,950          10
Furniture and Equipment                              11,507        11,614   
                                                     588,256        564,978
Less - Accumulated Depreciation                      (157,568 )     (151,318 )
                                                     430,688       413,660  
                                                                    
Other Assets:
Deferred Charges, Net of Accumulated                 23,079         19,892
Amortization
Intangible Assets, Net of Accumulated                43,913         45,784
Amortization
Due from Related Parties                             1,854          1,709
Notes Receivable                                     32,251         33,381
Goodwill                                             2,771          2,700
Other                                                5,930         5,509    
                                                     109,798       108,975  
                                                                    
TOTAL ASSETS                                       $ 652,894     $ 637,693  


INTERNATIONAL SHIPHOLDING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(All Amounts in Thousands)
(Unaudited)

                                                   March 31,    December 31,
                                                    2013          2012
                                                                     
                                                                     
Current Liabilities:
Current Maturities of Long-Term Debt                $ 25,729      $  26,040
Accounts Payable and Accrued Liabilities              59,150        50,896  
Total Current Liabilities                             84,879        76,936  
                                                                     
Long-Term Debt, Less Current Maturities               190,315       211,590 
                                                                     
Other Long-Term Liabilities:
Lease Incentive Obligation                            5,962          6,150
Other                                                 85,511        80,718  
                                                                     
TOTAL LIABILITIES                                     366,667       375,394 
                                                                     
Stockholders' Equity:
Preferred Stock, $1.00 Par Value 9.50% Series A       250            -
Cumulative Perpetual Preferred Stock
287,500 shares authorized, 250,000 shares Issued
and Outstanding at March 31, 2013
Common Stock, $1.00 Par Value, 20,000,000 Shares      8,638          8,632
Authorized,
7,225,945 and 7,203,935 Shares Issued and
Outstanding at
March 31, 2013 and December 31, 2012,
Respectively
Additional Paid-In Capital                            109,652        86,362
Retained Earnings                                     217,449        217,654
Treasury Stock, 1,388,066 Shares at both March        (25,403 )      (25,403 )
31, 2013 and December 31, 2012, Respectively
Accumulated Other Comprehensive Loss                  (24,359 )      (24,946 )
TOTAL STOCKHOLDERS' EQUITY                            286,227       262,299 
                                                                     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY          $ 652,894    $  637,693 


INTERNATIONAL SHIPHOLDING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(All Amounts in Thousands)
(Unaudited)

                                                 Three Months Ended March 31,
                                                  2013           2012
                                                                  
Cash Flows from Operating Activities:
Net Income                                        $  1,653        $ 7,936
Adjustments to Reconcile Net Income to Net Cash
Provided by
Operating Activities:
Depreciation                                         5,936          6,521
Amortization of Deferred Charges                     1,913          1,789
Amortization of Intangible Assets                    1,871          643
Non-Cash Share Based Compensation                    272            340
Equity in Net Income of Unconsolidated Entities      270            70
Gain on Sale of Assets                               -              (3,799   )
Gain on Sale of Investments                          -              (42      )
Gain on Foreign Currency Exchange                    (3,181   )     (3,648   )
Changes in:
Deferred Drydocking Charges                          (2,722   )     (1,924   )
Accounts Receivable                                  (5,400   )     (3,637   )
Inventories and Other Current Assets                 1,932          121
Other Assets                                         422            1,714
Accounts Payable and Accrued Liabilities             3,491          429
Other Long-Term Liabilities                         6,053        (3,627   )
Net Cash Provided by Operating Activities           12,510       2,886    
                                                                  
Cash Flows from Investing Activities:
Principal payments received under Direct             558            1,518
Financing Leases
Capital Improvements to Vessels and Other            (3,612   )     (22,885  )
Assets
Proceeds from Sale of Assets                         -              130,315
Proceeds from Sale of Marketable Securities          -              5
Purchase of Marketable Securities                    -              (135     )
Investment in Unconsolidated Entities                -              (750     )
Net Decrease/(Increase) in Restricted Cash           -              6,907
Account
Acquisition of United Ocean Services, LLC            (2,475   )     -
Proceeds from Note Receivables                      1,102        1,185    
Net Cash (Used In)Provided by Investing             (4,427   )    116,160  
Activities
                                                                  
Cash Flows from Financing Activities:
Issuance of Preferred Stock                          23,438         -
Proceeds from Issuance of Debt                       17,000         31,175
Repayment of Debt                                    (35,406  )     (134,292 )
Additions to Deferred Financing Charges              (396     )     (172     )
Common Stock Dividends Paid                         (1,826   )    (3,004   )
Net Cash Provided by (Used In) Financing            2,810        (106,293 )
Activities
                                                                  
Net Increase in Cash and Cash Equivalents            10,893         12,753
Cash and Cash Equivalents at Beginning of           19,868       21,437   
Period
                                                                  
                                                                  
Cash and Cash Equivalents at End of Period        $  30,761      $ 34,190   

Contact:

The IGB Group
David Burke, 646-673-9701
dburke@igbir.com
or
Leon Berman, 212-477-8438
lberman@igbir.com
or
International Shipholding Corporation
Niels M. Johnsen, 212-943-4141
Chairman
or
Erik L. Johnsen, 251-243-9221
President
 
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