OSGB Overseas Shipholding Grp. Com CL B (delisted)

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, 212-578-1645btanner@osg.com