Teekay Tankers Ltd. Reports First Quarter 2013 Results

Teekay Tankers Ltd. Reports First Quarter 2013 Results 
HAMILTON, BERMUDA -- (Marketwired) -- 05/09/13 -- Teekay Tankers Ltd.
(NYSE:TNK) -  
Highlights 


 
--  Reported first quarter 2013 adjusted net loss attributable to
    shareholders of Teekay Tankers(1) of $3.5 million, or $0.04 per share
    (excluding specific items which decreased GAAP net loss by $1.6 million,
    or $0.02 per share). 
    
--  Declared a cash dividend of $0.03 per share for the quarter ended March
    31, 2013. 
    
--  Ordered four fuel-efficient Long Range 2 (LR2) product tanker
    newbuildings for delivery in late-2015 and early-2016, with fixed-price
    options for up to 12 additional vessels exercisable at certain times
    over the next 18 months. 
    
--  Strong fixed-rate charter coverage of 40 percent over the next 12
    months. 
    
--  Total liquidity of $293.5 million with no significant debt maturities
    until 2017. 

 
Teekay Tankers Ltd. (Teekay Tankers or the Company) (NYSE:TNK) today
reported an adjusted net loss attributable to shareholders of Teekay
Tankers(1) (as detailed in Appendix a to this release) of $3.5
million, or $0.04 per share, for the quarter ended March 31, 2013,
compared to adjusted net income attributable to shareholders of
Teekay Tankers of $3.1 million, or $0.04 per share, for the same
period in the prior year. The increase in adjusted net loss
attributable to shareholders of Teekay Tankers is primarily the
result of the change in employment of certain of the Company's
vessels from fixed rates to lower spot rates on expiry of their
fixed-rate charters and lower average spot realized tanker rates for
the first quarter of 2013 compared to the same period in the prior
year. Adjusted net loss attributable to shareholders of Teekay
Tankers excludes a number of specific items that had the net effect
of decreasing net loss attributable to shareholders of Teekay Tankers
by $1.6 million, or $0.02 per share, and increasing net income
attributable to shareholders of Teekay Tankers by $1.1 million, or
$0.02 per share, for the three month periods ended March 31, 2013 and
March 31, 2012, respectively, as detailed in Appendix a to this
release. Including these items, the Company reported, on a GAAP
basis, a net loss attributable to shareholders
 of Teekay Tankers of
$2.0 million, or $0.02 per share, for the quarter ended March 31,
2013, compared to a net income attributable to shareholders of Teekay
Tankers of $4.1 million, or $0.06 per share, for the quarter ended
March 31, 2012. Net revenues(2) were $42.0 million and $53.5 million
for the first quarters of 2013 and 2012, respectively. 
The Company's financial statements for prior periods include the
historical results of the 13 vessels acquired by the Company from
Teekay Corporation in June 2012, referred to herein as the Dropdown
Predecessor, for the periods when these vessels were owned and
operated by Teekay Corporation. 
During the first quarter of 2013, the Company generated $8.3 million,
or $0.10 per share, in Cash Available for Distribution(3), compared
to $10.8 million, or $0.13 per share, in the fourth quarter of 2012.
On May 8, 2013, Teekay Tankers under its new fixed dividend policy
declared a dividend of $0.03 per share for the first quarter of 2013,
which will be paid on May 28, 2013 to all shareholders of record on
May 20, 2013. Since the Company's initial public offering in December
2007, it has declared a dividend in 22 consecutive quarters, which
now totals $7.215 per share on a cumulative basis (including the
dividend to be paid on May 28, 2013). 


 
(1) Adjusted net (loss) income attributable to shareholders of Teekay       
Tankers is a non-GAAP financial measure. Please refer to Appendix A in this 
release for a reconciliation of this non-GAAP measure as used in this       
release to the most directly comparable financial measure under United      
States generally accepted accounting principles (GAAP) and for information  
about specific items affecting net (loss) income that are typically excluded
by securities analysts in their published estimates of the Company's        
financial results.                                                          
(2) Net revenues is a non-GAAP financial measure used by certain investors  
to measure the financial performance of shipping companies. Please refer to 
Appendix C included in this release for a reconciliation of this non-GAAP   
measure to the most directly comparable financial measure under GAAP.       
(3) Cash Available for Distribution represents net (loss) income, plus      
depreciation and amortization, unrealized losses from derivatives, non-cash 
items and any write-offs or other non-recurring items, less unrealized gains
from derivatives and net income attributable to the historical results of   
vessels acquired by the Company from Teekay Corporation, for the period when
these vessels were owned and operated by Teekay Corporation. Please refer to
Appendix B to this release for a reconciliation of Cash Available for       
Distribution (a non-GAAP measure) as used in this release to the most       
directly comparable GAAP financial measure.                                 

 
"In the first quarter of 2013, spot tanker rates remained at similar
levels to the fourth quarter of 2012, with cold weather creating late
season ice conditions which led to short-lived rate spikes in the
Atlantic near the end of the quarter," commented Bruce Chan, Teekay
Tankers' Chief Executive Officer. "As we proceed into the Northern
Hemisphere summer months, a seasonally weaker period for spot tanker
demand, we have continued to focus on maintaining a strong level of
fixed-cover, which is approximately 40 percent over the next 12
months."  
"Despite the near-term challenges in the spot tanker rate
environment, we believe that Teekay Tankers remains well-positioned
for an expected market recovery," Mr. Chan continued. "Our recent
order of four fuel-efficient LR2 product tanker newbuildings from STX
Offshore & Shipbuilding is a reflection of our positive view of the
developing fundamentals, particularly in the long-haul product tanker
market. At an attractive fully built-up cost of approximately $47
million per vessel, we believe that these newbuildings will provide
good value for Teekay Tankers as they deliver into an expected
improving tanker market in late-2015 and early-2016. In addition, the
fixed-price option stream included with this transaction provides
potential for further upside in a recovering tanker market."  
Mr. Chan added, "Teekay Tankers remains financially strong with a
manageable level of debt and no significant debt repayments until
2017. The favorable tail-weighted payment profile of the LR2
newbuildings will result in the majority of the purchase price being
paid on delivery, which limits the near-term impact on Teekay
Tankers' liquidity and provides ample time to arrange longer-term
financing. In addition, with the shift to a fixed dividend commencing
this quarter, Teekay Tankers will retain additional operating cash
flow as the tanker market recovers for investment in Teekay Tankers'
future growth." 
Summary of Recent Events 
On April 8, 2013 Teekay Tankers announced it had entered into an
agreement with STX Offshore & Shipbuilding Co., Ltd., of South Korea
for the construction of four, fuel-efficient 113,000 dead-weight
tonne (dwt) LR2 product tanker newbuildings for a fully-built-up cost
of approximately $47 million each. The agreement with STX also
includes fixed-priced options for 
up to 12 additional LR2
newbuildings, of which four are exercisable up to and including each
of the following months: October 2013, April 2014 and October 2014,
respectively. The firm newbuilding orders are scheduled to deliver in
late-2015 and early-2016. 
On April 12, 2013, Teekay Tankers commenced a 36-month time-charter
out contract for the Aframax tanker Everest Spirit at a rate of
$15,500 per day. This time-charter has allowed Teekay Tankers to
maintain its strong level of fixed-cover of 40 percent for the 12
months commencing March 31, 2013. 
Tanker Market 
Crude tanker spot rates improved slightly during the first quarter of
2013 but remained at comparatively low levels on a historical basis.
Demand for large crude tankers decreased due to a reduction in crude
oil production from the Organization of Petroleum Exporting Countries
(OPEC), with Saudi Arabian output falling to 9.0 million barrels per
day (mb/d) during the first quarter compared to an average production
of 9.5 mb/d in 2012. The onset of a relatively heavy refinery
maintenance season towards the end of the first quarter also
negatively impacted crude tanker demand. Seasonal factors gave some
support to rates at times during the quarter, particularly in the
Atlantic basin where cold weather in Northern Europe and poor weather
in the U.S. Gulf region led to some sharp, but relatively
short-lived, spikes in crude tanker rates. 
Long Range 2 (LR2) product tanker rates held steady during the first
quarter of 2013. High levels of naphtha arbitrage movements from
Europe to Asia coupled with strong product imports from the Middle
East to Asia due to local refinery maintenance supported the demand
for LR2 tankers. The global LR2 fleet grew by only three vessels
during the first quarter and LR2 fleet growth is expected to remain
low with an orderbook of only 26 vessels for delivery through 2015. 
In total, 8.7 million deadweight tonnes (mdwt) of tankers delivered
into the fleet during the first quarter of 2013, the lowest first
quarter delivery total since 2008. The level of tanker removals was
relatively low at 2.4 mdwt during the quarter, which resulted in net
fleet growth of 6.3 mdwt, or 1.3 percent. The current tanker
orderbook of 54 mdwt is the lowest level since the second quarter of
2001 on an absolute basis, and the lowest since the second quarter of
1997 on a percentage of the total fleet basis (approximately 11
percent). Since the start of 2013, there has been an increase in new
tanker orders, with 8.9 mdwt of tanker orders in the first four
months of the year compared to 3.8 mdwt of orders in the same period
of 2012. However, the pace of ordering remains low relative to
historical levels.  
The global economy continues to be a significant source of
uncertainty for forecast oil and tanker demand growth, with the
International Monetary Fund (IMF) recently downgrading its outlook
for GDP growth in 2013 to 3.3 percent compared to its previous
forecast of 3.5 percent. The outlook for oil demand during 2013 calls
for a modest increase of 0.9 mb/d based on the average of the
International Energy Agency (IEA), Energy Information Administration
(EIA), and OPEC forecasts. For 2014, the outlook is more positive,
with the EIA forecasting global oil demand growth of 1.3 mb/d, mainly
driven by the non-OECD countries and China in particular. 
Oper
ating Results 
The following table highlights the operating performance of the
Company's time-charter and spot vessels measured in net voyage
revenue per revenue day, or time-charter equivalent (TCE) rates,
before related-party pool management fees, related-party commissions
and off-hire bunker expenses:  


 
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                                                Three Months Ended          
                                         March 31, December 31,    March 31,
                                              2013         2012    2012(iii)
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Time-Charter Out Fleet                                                      
Suezmax revenue days                           188          362          273
Suezmax TCE per revenue day(i)         $    19,718  $    21,036  $    27,484
Aframax revenue days                           809          714          543
Aframax TCE per revenue day(i)         $    17,259  $    17,769  $    17,782
MR revenue days                                218          276            -
MR TCE per revenue day(ii)             $    28,734  $    25,287            -
                                                                            
Spot Fleet                                                                  
Suezmax revenue days                           690          538          272
Gemini Suezmax Pool TCE per revenue                                         
 day                                   $    13,821  $    11,515  $    25,236
Aframax revenue days                           356          424          404
Aframax Pool TCE per revenue day(iv)   $    11,848  $    13,384  $    12,715
LR2 Pool revenue days                          270          276            -
Taurus LR2 Pool TCE per revenue day    $    15,350  $    15,889            -
MR revenue days                                 32            -            -
MR TCE per revenue day                 $     8,405            -            -
                                                                            
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Total Fleet                                                                 
                                                                            
Suezmax revenue days                           878          900          545
Suezmax TCE per revenue day(i)         $    15,086  $    15,345  $    26,361
Aframax revenue days                         1,165        1,138          947
Aframax TCE per revenue day(i)         $    15,605  $    16,141  $    15,620
LR2 revenue days                               270          276            -
LR2 TCE per revenue day                $    15,350  $    15,889            -
MR revenue days                                250          276            -
MR TCE per revenue day(ii)             $    26,113  $    25,287            -
                                                                            
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(i) Excludes profit share amounts relating to certain vessels which are     
employed on fixed-rate time-charter contracts that include a profit-sharing 
component.                                                                  
(ii) The charter rate on one of the Medium Range (MR) tankers includes      
approximately $14,000 per day for the additional costs relating to          
Australian crew versus international crew.                                  
(iii) The TCE rates in the table above exclude the results of the           
acquisition of the 13 conventional tankers from Teekay Corporation prior to 
their acquisition by the Company in June 2012.                              
(iv) The combined average spot TCE rate for the Aframax tankers trading in  
both the Aframax Pool and on n
on-pool voyage charters was $9,956 per day for
the three months ended March 31, 2013. All Aframax tankers in the Company's 
fleet traded in the Aframax Pool for the three months ended December 31,    
2012 and March 31, 2012.                                                    

 
Teekay Tankers' Fleet 
The following table summarizes the Company's fleet as of May 1, 2013: 


 
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                                          Chartered-in                      
                          Owned Vessels        Vessels   Newbuildings  Total
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Fixed-rate:                                                                 
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Suezmax Tankers                       2              -              -      2
Aframax Tankers(i)                   10              -              -     10
MR Product Tankers(ii)                1              -              -      1
VLCC Tankers                          -              -              1      1
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Total Fixed-Rate Fleet               13              -              1     14
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Spot-rate:                                                                  
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Suezmax Tankers                       8              -              -      8
Aframax Tankers(iii)(iv)              1              2              -      3
LR2 Product Tankers                   3              -              4      7
MR Product Tankers                    2              -              -      2
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Total Spot Fleet                     14              2              4     20
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Total Teekay Tankers                                                        
 Fleet                               27              2              5     34
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(i) Commencing April 12, 2013, the Aframax tanker Everest Spirit was time-  
chartered out for a three-year period at a rate of $15,500 per day.         
(ii) Two MR product tankers, the Teesta Spirit and the Mahanadi Spirit,     
commenced trading in the spot market after completion of their time-charter 
out contracts in February 2013 and April 2013, respectively.                
(iii) The Aframax tanker S
tar Lady time-charter in contract was extended for
an additional six-month period ending in July 2013 at a rate of $12,250 per 
day, with an additional option to extend for a 12-month period at a higher  
rate.                                                                       
(iv) The Aframax tanker BM Breeze is currently time-chartered in for a 12-  
month period ending in January 2014 with options to extend at escalating    
rates.                                                                      

 
Teekay Tankers owns a 50 percent interest in a newbuilding
Very-Large-Crude-Carrier (VLCC) through a joint venture with Wah
Kwong Maritime Transport Holdings Limited which the Company entered
into in October 2010. The newbuilding is scheduled to deliver in the
second quarter of 2013, at which time it will commence a time-charter
out contract to a major Chinese shipping company for a period of five
years. The time-charter includes a fixed floor rate, coupled with a
profit-sharing component. 
In July 2010, the Company invested $115 million in term loans secured
by first-priority ship mortgages on two VLCCs, the income of which
the Company believes approximates that of two vessels trading on
fixed-rate bareboat charters. The borrower on this loan is facing
financial difficulty and has defaulted on its interest payment
obligations under the loans during the first quarter of 2013. The
Company estimates that the current value of its security interest in
the two VLCC tankers is sufficient to cover all amounts currently
owed from the borrower. However, there is a possibility that actual
results could vary from the Company's estimates, including earning
lower rates from the vessels in the spot or time charter markets,
incurring higher costs to operate the vessels or that the value of
2010-built VLCC tankers will decline further in 2013. As a result,
should these differences from the Company's estimates occur, it may
not be able to fully recover all amounts due under the loans. To
ensure greater control over its security interest in these vessels,
the Company has taken over technical and commercial management of
both VLCC tankers. 
Liquidity 
As of March 31, 2013, the Company had total liquidity of $293.5
million (which consisted of $27.0 million of cash and $266.5 million
in an undrawn revolving credit facility), compared to total liquidity
of $327.3 million as at December 31, 2012. As a result of the sale of
the Nassau Spirit, the borrowings available under one of the
revolvers was reduced.  
Availability of 2012 Annual Report 
Teekay Tankers filed its 2012 Annual Report on Form 20-F with the
U.S. Securities and Exchange Commission (SEC) on April 30, 2013.
Copies of this report are available on the Teekay Tankers website,
under "SEC Filings", at www.teekaytankers.com. Shareholders may
request a printed copy of this Annual Report, including the complete
audited financial statements, free of charge by contacting Teekay
Tankers' Investor Relations. 
Conference Call 
The Company plans to host a conference call on May 9, 2013 at 1:00
p.m. (ET) to discuss its results for the first quarter of 2013. An
accompanying investor presentation will be available on Teekay
Tankers' website at www.teekaytankers.com prior to the start of the
call. All shareholders and interested parties are invited to listen
to the live conference call by choosing from the following options: 


 
--  By dialing (800) 711-9538 or (416) 640-5925, if outside of North
    America, and quoting conference ID code 2961378. 
    
--  By accessing the webcast, which will be available on Teekay Tankers'
    website at www.teekaytankers.com (the archive will remain on the website
    for a period of 30 days). 

 
The conference call will be recorded and available until Thursday,
May 16, 2013. This recording can be accessed following the live call
by dialing (888) 203-1112 or (647) 436-0148, if outside North
America, and entering access code 2961378. 
About Teekay Tankers 
Teekay Tankers currently owns a fleet of 31 double-hull vessels,
including 11 Aframax tankers, 10 Suezmax tankers, seven Long Range 2
(LR2) product tankers (including four committed newbuildings), three
Medium-Range (MR) product tankers and has two time-chartered in
Aframax tankers, all of which vessels an affiliate of Teekay
Corporation (NYSE:TK) manages through a mix of short- or medium-term
fixed-rate time-charter contracts and spot tanker market trading. The
Company also owns a VLCC newbuilding through a 50 percent-owned joint
venture, which is scheduled to deliver in the second quarter of 2013.
Teekay Tankers was formed in December 2007 by Teekay Corporation as
part of its strategy to expand its conventional oil tanker business.  
Teekay Tankers' common stock trades on the New York Stock Exchange
under the symbol "TNK." 


 
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         TEEKAY TANKERS LTD.                             
              SUMMARY CONSOLIDATED STATEMENTS OF (LOSS) INCOME              
              (in thousands of U.S. dollars, except share data)             
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                          Three Months Ended                
                          --------------------------------------------------
                           March 31, 2013 December 31, 2012  March 31, 2012 
                          --------------------------------------------------
                              (unaudited)       (unaudited)  (unaudited)(1) 
                          --------------------------------------------------
                                                                            
Time-charter revenues              24,178            27,339          35,636 
Net pool revenues                  16,098            15,241          16,313 
Voyage charter revenue              1,850                28               - 
Interest income from                                                        
 investment in term loans           2,827             2,885           2,863 
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Total revenues                     44,953            45,493          54,812 
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OPERATING EXPENSES                                                          
Voyage expenses                     2,913             1,017           1,322 
Vessel operating                                                            
 expenses(2)                       23,054            25,016          23,221 
Time-charter hire expense           1,986               841           1,661 
Depreciation and                                                            
 amortization                      11,864            18,431          17,991 
General and                                                                 
 administrative(2)                  3,561             2,390           1,338 
Vessel impairment and net                                                   
 loss on sale of vessel                71           352,546               - 
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                                   43,449           400,241          45,533 
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Income (loss) from                                                          
 operations                         1,504          (354,748)          9,279 
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OTHER ITEMS                                                                 
Interest expense                   (2,511)           (2,840)         (7,561)
Interest income                         4                14              10 
Realized and unrealized                                                     
 (loss) gain on derivative                                                  
 instruments(3)                      (766)            1,263          (1,079)
Other expenses                       (184)             (258)           (276)
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                                   (3,457)           (1,821)         (8,906)
----------------------------------------------------------------------------
Net (loss) income                  (1,953)         (356,569)            373 
-----------------------------------------------------------
-----------------
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(Loss) earnings per share                                                   
 attributable to                                                            
 shareholders of Teekay                                                     
 Tankers(4)                                                                 
  - Basic and diluted               (0.02)            (4.27)           0.06 
Weighted-average number of                                                  
 Class A common shares                                                      
 outstanding                                                                
  - Basic and diluted          71,091,030        71,091,030      58,475,645 
Weighted-average number of                                                  
 Class B common shares                                                      
 outstanding                                                                
  - Basic and diluted          12,500,000        12,500,000      12,500,000 
Weighted-average number of                                                  
 total common shares                                                        
 outstanding                                                                
  - Basic and diluted          83,591,030        83,591,030      70,975,645 
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(1) The Company acquired 13 vessels from Teekay Corporation in June 2012.   
Results for the 13 conventional tankers for the periods prior to their      
acquisition by the Company when they were owned and operating under Teekay  
Corporation, are referred to as the Dropdown Predecessor. Dropdown          
Predecessor amounts included in the financial results are summarized for the
respective periods in Appendix A.                                           
(2) In order to more closely align the Company's presentation to many of its
peers, the cost of ship management activities of $1.4 million for the three 
months ended March 31, 2013 have been presented in vessel operating         
expenses. Prior to 2013, the Company included these amounts in general and  
administrative expenses. All such costs incurred in comparative periods have
been reclassified from general and administrative expenses to vessel        
operating expenses to conform to the presentation adopted in the current    
period. The amounts reclassified were $1.4 million and $2.1 million for the 
three months ended December 31, 2012 and March 31, 2012, respectively.      
(3) Includes realized losses relating to interest rate swaps of $2.4 million
for the three months ended March 31, 2013, December 31, 2012 and March 31,  
2012, respectively.                                                         
(4) (Loss) earnings per share attributable to shareholders of Teekay Tankers
is determined by dividing (a) net (loss) income of the Company after        
adjusting for the amount of net (loss) income attributable to the Dropdown  
Predecessor by (b) the weighted-average number of shares outstanding during 
the applicable period.                                                      
                                                                            
                                                                            
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                            TEEKAY TANKERS LTD.                             
                     SUMMARY CONSOLIDATED BALANCE SHEETS                    
                       (in thousands of U.S. dollars)                       
----------------------------------------------------------------------------
---------------------
-------------------------------------------------------
 

 
                                                     As at             As at
                                        ------------------------------------
                                            March 31, 2013 December 31, 2012
                                        ------------------------------------
                                               (unaudited)       (unaudited)
                                        ------------------------------------
ASSETS                                                                      
Cash                                                27,046            26,341
Pool receivable from related parties                 8,929             9,101
Interest receivable                                  4,032             1,565
Vessel held for sale                                     -             9,114
Other current assets                                17,659            14,237
Investment in term loans                           118,060           117,820
Due from affiliates                                 27,248            24,787
Vessels and equipment                              876,762           885,992
Loan to joint venture                                9,830             9,830
Other non-current assets                             6,883             6,869
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Total assets                                     1,096,449         1,105,656
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LIABILITIES AND EQUITY                                                      
Accounts payable and accrued liabilities            20,537            21,228
Current portion of long-term debt                   25,246            25,246
Current portion of derivative                                               
 instruments                                         6,251             7,200
Other current liabilities                            1,970             4,564
Due to affiliates                                    7,273             3,592
Long-term debt                                     706,454           710,455
Other long-term liabilities                         30,907            31,188
Equity                                             297,811           302,183
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Total liabilities and equity                     1,096,449         1,105,656
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                            TEEKAY TANKERS LTD.                             
                SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS               
                       (in thousands of U.S. dollars)                       
----------------------------------------------------------------------------
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                                                   Three Months Ended       
                                            --------------------------------
                                             March 31, 2013  March 31, 2012 
                                            --------------------------------
                                                (unaudited)  (unaudited)(1) 
                                            --------------------------------
Cash and cash equivalents provided by (used for
)                            
OPERATING ACTIVITIES                                                        
----------------------------------------------------------------------------
Net operating cash flow                                (986)         11,852 
----------------------------------------------------------------------------
                                                                            
FINANCING ACTIVITIES                                                        
Proceeds from long-term debt                          1,091               - 
Repayments of long-term debt                         (5,092)           (450)
Prepayment of long-term debt                              -         (55,000)
Proceeds from long-term debt of Dropdown                                    
 Predecessor                                              -           1,177 
Repayment from long-term debt of Dropdown                                   
 Predecessor                                              -          (4,642)
Prepayment from long-term debt of Dropdown                                  
 Predecessor                                              -         (15,000)
Net advances from affiliates                              -          11,052 
Contribution of capital from Teekay                                         
 Corporation                                              -           3,894 
Proceeds from issuance of Class a common                                    
 stock                                                    -          69,000 
Share issuance costs                                      -          (3,015)
Cash dividends paid                                  (2,507)         (8,704)
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Net financing cash flow                              (6,508)         (1,688)
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INVESTING ACTIVITIES                                                        
Proceeds from the sale of vessels and                                       
 equipment                                            9,119               - 
Expenditures for vessels and equipment                 (675)           (692)
Investment in joint venture                            (245)           (350)
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Net investing cash flow                               8,199          (1,042)
----------------------------------------------------------------------------
                                                                            
Increase in cash and cash equivalents                   705           9,122 
Cash and cash equivalents, beginning of the                                 
 period                                              26,341          18,566 
----------------------------------------------------------------------------
Cash and cash equivalents, end of the period         27,046          27,688 
----------------------------------------------------------------------------
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(1) In accordance with GAAP, the statements of cash flows for the three-    
month period ended March 31, 2012, include the Dropdown Predecessor amounts 
for the 13 conventional tankers acquired by the Company from Teekay         
Corporation in June 2012 to reflect ownership of the vessels from the time  
they were owned and operated by Teekay Corporation.                         
                                                                            
                                                                            
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                   TEEKAY TANKERS LTD.                             
           APPENDIX A - SPECIFIC ITEMS AFFECTING NET (LOSS) INCOME          
          (in thousands of U.S. dollars, except per share amounts)          
----------------------------------------------------------------------------
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Set forth below is a reconciliation of the Company's unaudited
adjusted net (loss) income attributable to the shareholders of Teekay
Tankers, a non-GAAP financial measure, to net (loss) income as
determined in accordance with GAAP. The Company believes that, in
addition to conventional measures prepared in accordance with GAAP,
certain investors use this information to evaluate the Company's
financial performance. The items below are also typically excluded by
securities analysts in their published estimates of the Company's
financial results. Adjusted net (loss) income attributable to the
shareholders of Teekay Tankers is intended to provide additional
information and should not be considered a substitute for measures of
performance prepared in accordance with GAAP. 


 
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                                                   Three Months Ended       
                                            --------------------------------
                                             March 31, 2013  March 31, 2012 
                                            --------------------------------
                                                (unaudited)     (unaudited) 
                                            --------------------------------
                                                      $ Per           $ Per 
                                                  $   Share       $   Share 
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Net (loss) income - GAAP basis               (1,953) ($0.02)    373   $0.01 
Add:                                                                        
  Net loss attributable to the Dropdown                                     
   Predecessor                                    -           3,764   $0.05 
                                            --------------------------------
Net (loss) income attributable to                                           
 shareholders of Teekay Tankers              (1,953) ($0.02)  4,137   $0.06 
(Subtract) add specific items affecting net                                 
 income:                                                                    
  Unrealized gain on interest rate swaps (1) (1,631) ($0.02) (1,050) ($0.02)
  Loss on vessel sale                            71   $0.00       -       - 
----------------------------------------------------------------------------
Total adjustments                            (1,560) ($0.02) (1,050) ($0.02)
----------------------------------------------------------------------------
Adjusted net (loss) income attributable to                                  
 shareholders of Teekay Tankers              (3,513) ($0.04)  3,087   $0.04 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
(1) Reflects the unrealized gain or loss due to changes in the mark-to-     
market value of derivative instruments that are not designated as hedges for
accounting purposes.                                                        
                                                                            
                                                                            
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                             TEEKAY TANKERS LTD.                            
          APPENDIX B - RECONCILIATION OF NON-GAAP FINANCIAL MEASURE         
                       CASH AVAILABLE FOR DISTRIBUTION                      
      (in thousands of U.S. dollars, except share and per share data)       
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
Description of Non-GAAP Financial Measure - Cash Available for
Distribution  
Cash Available for Distribution represents net (loss) income, plus
depreciation and amortization, unrealized losses from derivatives,
non-cash items and any write-offs or other non-recurring items, less
unrealized gains from derivatives and net income attributable to the
historical results of vessels acquired by the Company from Teekay
Corporation for the period when these vessels were owned and operated
by Teekay Corporation.  


 
----------------------------------------------------------------------------
                                                               Three Months 
                                                                      Ended 
                                                             ---------------
                                                             March 31, 2013 
                                                             ---------------
                                                                (unaudited) 
----------------------------------------------------------------------------
Net loss for the period                                              (1,953)
                                                                            
Add:                                                                        
  Depreciation and amortization                                      11,864 
Less:                                                                       
  Unrealized gain on interest rate swaps                             (1,631)
  Other                                                                 (10)
----------------------------------------------------------------------------
Cash Available for Distribution                                       8,270 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                                                                            
Weighted average number of common shares outstanding for the                
 quarter ended                                                   83,591,030 
                                                                            
----------------------------------------------------------------------------
Cash Available for Distribution per share (rounded)                   $0.10 
----------------------------------------------------------------------------
                                                                            
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                             TEEKAY TANKERS LTD.                            
          APPENDIX C - RECONCILIATION OF NON-GAAP FINANCIAL MEASURE         
                                NET REVENUES                                
                       (in thousands of U.S. dollars)                       
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
Description of Non-GAAP Financial Measure - Net Revenues 
Net revenues represents revenues less voyage expenses where voyage
expenses is comprised of all expenses relating to certain voyages,
including bunker fuel expenses, port fees, canal tolls and brokerage
commissions. Net revenues is a non-GAAP financial measure used by
certain investors to measure the financial performance of shipping
companies; however, it is not required by GAAP and should not be
considered as an alternative to revenues or any other indicator of
the Company's performance required by GAAP. 


 
                                              Three Months Ended            
                                   -----------------------------------------
                                      March 31,   December 31,    March 31, 
                                   -----------------------------------------
                                           2013           2012         2012 
                                   -----------------------------------------
                                    (unaudited)    (unaudited)  (unaudited) 
----------------------------------------------------------------------------
Revenues                                 44,953         45,493       54,812 
Voyage expenses                          (2,913)        (1,017)      (1,322)
----------------------------------------------------------------------------
Net revenues(1)                          42,040         44,476       53,490 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
FORWARD-LOOKING STATEMENTS 
This release contains forward-looking statements (as defined in
Section 21E of the Securities Exchange Act of 1934, as amended) which
reflect management's current views with respect to certain future
events and performance, including statements regarding: the crude oil
and refined product tanker market fundamentals, including the balance
of supply and demand in the tanker market, spot tanker rates and the
potential for a tanker market recovery; the strength of the Company's
position and its ability to take advantage of a tanker market
recovery; the Company's financial position and ability to acquire
additional assets; the Company's fixed coverage for the 12 months
commencing March 31, 2013; the timing and certainty of investment in
future growth opportunities; the anticipated timing of delivery of
the joint venture's VLCC newbuilding; the anticipated value of our
security interest in the two VLCCs being sufficient to cover the
outstanding amounts owed under the term loans; the timing of delivery
and fully-built-up cost for the Company's four LR2 newbuildings; the
impact of the fixed dividend on retaining more operating cash flow
for investment in future growth; and the potential to exercise
options for additional LR2 newbuildings, and the financial impact of
future vessel deliveries on the Company's financial results in a
recovering tanker market. 
The following factors are among those that could cause actual results
to differ materially from the forward-looking statements, which
involve risks and uncertainties, and that should be considered in
evaluating any such statement: changes in the production of or demand
for oil; changes in trading patterns significantly affecting overall
vessel tonnage requirements; lower than expected levels of tanker
scrapping; changes in applicable industry laws and regulations and
the timing of implementation of new laws and regulations; the
potential for early termination of short- or medium-term contracts
and inability of the Company to renew or replace short- or
medium-term contracts; changes in interest rates and the capital
markets; future issuances of the Company's common stock; the ability
of the Company to recover principal and interest for two
first-priority ship mortgage loans secured by two VLCCs; the ability
of the shipyard to deliver on four newbuilding orders in late-2015,
early-2016; increases in the Company's expenses, including any
dry-docking expenses and associated off-hire days; the ability of
Teekay Tankers' Board of directors to establish cash reserves for the
prudent conduct of Teekay Tankers' business or otherwise; failure of
Teekay Tankers Board of Directors and its Conflicts Committee to
accept future acquisitions of vessels that may be offered by Teekay
Corporation or third parties; and other factors discussed in Teekay
Tankers' filings from time to time with the United States Securities
and Exchange Commission, including its Report on Form 20-F for the
fiscal year ended December 31, 2012. The Company expressly disclaims
any obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in the Company's expectations with respect thereto
or any change in events, conditions or circumstances on which any
such statement is based.
Contacts:
Teekay Tankers Ltd.
Kent Alekson
Investor Relations
+1 (604) 844-6654
www.teekaytankers.com
 
 
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