ATHENS, May 16, 2024 (GLOBE NEWSWIRE) -- Global Ship Lease, Inc. (NYSE:GSL) (the "Company", "Global Ship Lease" or "GSL"), an owner of containerships, announced today its unaudited results for the three months ended March 31, 2024. First Quarter of 2024 Highlights - Reported operating revenue of $179.6 million for the first quarter of 2024, an increase of 12.7% on operating revenue of $159.3 million for the prior year period. - Reported net income available to common shareholders of $89.5 million for the first quarter of 2024, an increase of 24.0% on net income of $72.2 million for the prior year period. Normalized net income (a non-U.S. GAAP financial measure, described below) for the same period was $89.1 million, up 17.9% on Normalized net income of $75.6 million for the prior year period. - Generated $125.4 million of Adjusted EBITDA (a non-U.S. GAAP financial measure, described below) for the first quarter of 2024, up 19.5% on Adjusted EBITDA of $104.9 million for the prior year period. - Earnings per share for the first quarter of 2024 was $2.54, up 25.7% on the earnings per share of $2.02 for the prior year period. Normalized earnings per share (a non-U.S. GAAP financial measure, described below) for the first quarter of 2024 was $2.53, up 19.3% on the Normalized earnings per share of $2.12 for the prior year period. - Declared a dividend of $0.375 per Class A common share for the first quarter of 2024 to be paid on June 3, 2024 to common shareholders of record as of May 24, 2024. Paid a dividend of $0.375 per Class A common share for the fourth quarter of 2023 on March 6, 2024. - Between January 1, 2024 and March 31, 2024, added $54.6 million of contracted revenue to forward charter cover, calculated on the basis of the median firm periods of the respective charters. Three new charters or extensions were agreed on ships between 2,200 and 3,500 TEU; a charter extension was agreed for a 5,900 TEU ship; and charter extension options were exercised by charterers for one 5,100 TEU ship and for four 6,000 TEU ships. - During the first quarter of 2024, repurchased an aggregate of 251,772 Class A common shares for a total consideration of $5.0 million. Repurchase prices ranged between $18.98 and $20.83 per share, with an average price of $19.84 per share. Approximately $33.0 million of capacity remains under the Company's opportunistic share buy-back authorization. - Ian Webber retired from the CEO role he held since the Company's inception in 2007, and has joined the Board of Directors, effective March 31, 2024. Thomas Lister, who also joined the Company in 2007 and has held a number of senior executive roles, was appointed to succeed Mr. Webber as CEO, effective concurrently with Mr. Webber's retirement. George Giannopoulos, who has been Head of Internal Audit of the Company since the merger with Poseidon Containers in 2018, has been appointed Chief Compliance Officer. George Youroukos, our Executive Chairman, stated: "Our industry has started the year with positive momentum, partly on the back of an uptick in containerized freight demand. However, geopolitical events and environmental trends continue to have a pronounced impact on the macro-environment, adding further volatility to our already cyclical industry. Disruptions in and around the Red Sea, and to the Suez and Panama Canals, have been at the forefront of all of our minds for the last few months. But, just as quickly and unpredictably as such issues can flare up, they can also go into remission, expand, or change in unanticipated ways. Against this backdrop, we aim to continue to operate our business in the same risk-averse and prudent manner as always: keeping our seafarers out of harm's way, staying close to our customers, optimizing our operating performance, and building forward contract cover and balance sheet strength while market conditions are supportive. Charter market rates have been firming thus far in 2024, and we are working hard to capitalize on that as our vessels come open. In the meantime, we continue to pay our sustainable dividend, buy back shares opportunistically, and remain vigilant for the right purchase opportunities." Thomas Lister, our Chief Executive Officer, stated: "We intend to stay both disciplined and nimble in our capital allocation, protecting and building value for our shareholders while maintaining a consistent focus on GSL's long-term performance and success. Container shipping is a cyclical industry, and that cyclicality presents both risks to manage and opportunities to grasp. De-levering builds equity value and business resilience, while growing our cash liquidity provides both headroom under our covenants - if asset values correct - and valuable optionality to selectively pursue accretive acquisition opportunities. Our contracted cashflow stream from time charters enables us to return capital to shareholders via our sustainable dividend and opportunistic share repurchases. We are also delighted that George Giannopoulos has agreed to expand his responsibilities to take on the role of GSL's Chief Compliance Officer, elevating a valuable and proven member of our team at a time when the regulatory environment is growing ever more complex and dynamic."      SELECTED FINANCIAL DATA – UNAUDITED (thousands of U.S. dollars)   Three Three   months ended months ended   March 31, 2024 March 31, 2023       Operating Revenue(1) 179,561 159,291 Operating Income 97,099 85,098 Net Income(2) 89,506 72,220 Adjusted EBITDA(3) 125,363 104,906 Normalized Net Income(3) 89,055 75,564       (1) Operating Revenue is net of address commissions which represent a discount provided directly to a charterer based on a fixed percentage of the agreed upon charter rate and also includes the amortization of intangible liabilities, the effect of the straight lining of time charter modifications and the compensation from charterers for drydock and other capitalized expenses installation. Brokerage commissions are included in "Time charter and voyage expenses" (see below). (2) Net Income available to common shareholders. (3) Adjusted EBITDA and Normalized Net Income are non-U.S. Generally Accepted Accounting Principles ("U.S. GAAP") financial measures, as explained further in this press release, and are considered by Global Ship Lease to be useful measures of its performance. For reconciliations of these non-U.S. GAAP financial measures to net income, the most directly comparable U.S. GAAP financial measure, please see "Reconciliation of Non-U.S. GAAP Financial Measures" below. Operating Revenue and Utilization Operating revenue derived from fixed-rate, mainly long-term, time-charters was $179.6 million in the first quarter of 2024, up $20.3 million (or 12.7%) on operating revenue of $159.3 million in the prior year period. The period-on-period increase in operating revenue was principally due to charter renewals at higher rates on a number of vessels, our acquisition of four vessels which were delivered to us in the second quarter of 2023 (the "Four Vessels") and a decrease in planned and unplanned off hire days, partially offset by a non-cash $1.9 million reduction in credit arising from the amortization of intangible liabilities arising on below-market charters attached to certain vessel additions and a non-cash $4.2 million decrease in the effect from straight lining time charter modifications. There were 73 days of offhire in the first quarter of 2024 of which 33 were for scheduled drydockings, compared to 302 days of offhire in the prior year period of which 200 were for scheduled drydockings. Utilization for the first quarter of 2024 was 98.8% compared to utilization of 94.8% in the prior year period. The table below shows fleet utilization for the three months ended March 31, 2024 and 2023, and for the years ended December 31, 2023, 2022, 2021 and 2020.   Three months ended   Year ended   Mar 31,   Mar 31,     Dec 31,   Dec 31,   Dec 31,   Dec 31,   Days 2024   2023     2023   2022   2021   2020                   Ownership days 6,188   5,843     24,285   23,725   19,427   16,044   Planned offhire - scheduled drydock (33)   (200)     (701)   (581)   (752)   (687)   Unplanned offhire (40)   (102)     (233)   (460)   (260)   (95)   Idle time nil   nil     (62)   (30)   (88)   (338)   Operating days 6,115   5,541     23,289   22,654   18,327   14,924                   Utilization 98.8%   94.8%     95.9%   95.5%   94.3%   93.0%                               As of March 31, 2024 one regulatory drydocking was in progress. In 2024, 14 regulatory drydockings are anticipated. Vessel Operating Expenses Vessel operating expenses, which are primarily the costs of crew, lubricating oil, repairs, maintenance, insurance and technical management fees, were up 11.9% to $47.9 million for the first quarter of 2024, compared to $42.8 million in the prior year period. The increase of $5.1 million was mainly due to (i) the acquisition of the Four Vessels in the second quarter of 2023, (ii) increase in repairs, spares and maintenance expenses for planned main engine maintenance and overhaul of diesel generators as well as main engine annual spares delivery due to timing of planned schedule, (iii) increased cost of insurance due to increased premiums and (iv) increase in management fees from January 1, 2024. The average cost per ownership day in the quarter was $7,734, compared to $7,319 for the prior year period, up $415 per day, or 5.7%. Time Charter and Voyage Expenses Time charter and voyage expenses comprise mainly commission paid to ship brokers, the cost of bunker fuel for owner's account when a ship is off-hire or idle and miscellaneous owner's costs associated with a ship's voyage. Time charter and voyage expenses were $5.2 million for the first quarter of 2024, compared to $5.5 million in the prior year period. The decrease was mainly due to decrease in bunkering expenses due to fewer off hire days offset by increased commissions on charter renewals at higher rates. Depreciation and Amortization Depreciation and amortization for the first quarter of 2024 was $24.3 million, compared to $21.2 million in the prior year period. The increase was mainly due to the acquisition of the Four Vessels in the second quarter of 2023 and 11 drydockings completed after March 31, 2023. General and Administrative Expenses General and administrative expenses were $5.1 million in the first quarter of 2024, compared to $4.8 million in the prior year period. The movement was mainly due to the increase in bonuses paid to our employees offset by a reduction in the non-cash charge for share-based compensation expense. The average general and administrative expenses per ownership day for the first quarter of 2024 was $822, compared to $820 in the prior year period, an increase of $2 or 0.2%. Adjusted EBITDA Adjusted EBITDA (a non-GAAP financial measure) was $125.4 million for the first quarter of 2024, up from $104.9 million for the prior year period, with the net increase being mainly due to increased revenue from charter renewals at higher rates and the addition of the Four Vessels in second quarter of 2023. Interest Expense and Interest Income Debt as at March 31, 2024 totaled $771.1 million, comprising $400.6 million of secured bank debt collateralized by vessels, $271.3 million of investment grade rated 5.69% Senior Secured Notes due 2027 (the "2027 Secured Notes") collateralized by vessels, and $99.2 million under sale and leaseback financing transactions. As of March 31, 2024, five vessels were unencumbered. Debt as at March 31, 2023 totaled $896.5 million, comprising $440.2 million of secured bank debt collateralized by vessels, $323.8 million of our 2027 Secured Notes collateralized by vessels, and $132.5 million under sale and leaseback financing transactions. As of March 31, 2023, five vessels were unencumbered. Interest and other finance expenses for the first quarter of 2024 was $10.5 million, down from $11.1 million for the prior year period. The decrease was mainly due to the decrease in interest expense following the principal repayments offset by amortization of premium paid for interest rate caps. The blended cost of debt, taking into account interest rate caps, has marginally increased from approximately 4.53% for the first quarter of 2023 to 4.56% for the first quarter of 2024 due to variations in amortization schedules and the addition of a new credit facility for the Four Vessels. Interest income for the first quarter of 2024 was $3.7 million, up from $1.8 million for the prior year period. Other income, net Other income, net was $1.3 million in the first quarter of 2024, compared to other income, net of $1.6 million in the prior year period. Fair value adjustment on derivatives In December 2021, we entered into a USD 1 month LIBOR interest rate cap of 0.75% through the fourth quarter of 2026 on $484.1 million of floating rate debt, which reduces over time in line with anticipated debt amortization and represented approximately half of the outstanding floating rate debt. In February 2022, we entered into two additional USD 1-month LIBOR interest rate caps of 0.75% through the fourth quarter of 2026 on the remaining balance of $507.9 million of floating rate debt. As a result of the discontinuation of LIBOR, on July 1, 2023, our interest rate caps have automatically transited to 1 month Compounded SOFR at a net rate of 0.64%. A positive fair value adjustment of $0.3 million for the first quarter of 2024 was recorded through the statement of income. Earnings Allocated to Preferred Shares The Series B Preferred Shares carry a coupon of 8.75%, the cost of which for the first quarter of 2024 was $2.4 million, the same as in the prior year period. Net Income Available to Common Shareholders Net income available to common shareholders for the first quarter of 2024 was $89.5 million. Net income available to common shareholders for the prior year period was $72.2 million. Earnings per share for the first quarter of 2024 was $2.54, an increase of 25.7% from the earnings per share for the prior year period, which was $2.02. Normalized net income (a non-GAAP financial measure) for the first quarter of 2024, was $89.1 million. Normalized net income for the prior year period was $75.6 million. Normalized earnings per share (a non-GAAP financial measure) for the first quarter of 2024 was $2.53, an increase of 19.3% from Normalized earnings per share for the prior year period, which was $2.12. Fleet As of March 31, 2024, there were 68 containerships in the fleet. Vessel Name Capacity in TEUs Lightweight (tons) Year Built Charterer Earliest Charter Expiry Date Latest Charter Expiry Date(2) Daily Charter Rate $                 CMA CGM Thalassa 11,040 38,577 2008 CMA CGM 4Q25 2Q26 47,200 ZIM Norfolk(1) 9,115 31,764 2015 ZIM 2Q27 4Q27 65,000 Anthea Y(1) 9,115 31,890 2015 MSC 3Q25 4Q25 Footnote(3) ZIM Xiamen(1) 9,115 31,820 2015 ZIM 3Q27 4Q27 65,000 MSC Tianjin 8,603 34,325 2005 MSC 3Q27 3Q27 19,000(4) MSC Qingdao 8,603 34,609 2004 MSC 3Q27 4Q27 23,000(4) GSL Ningbo 8,603 34,340 2004 MSC 3Q27 4Q27(5) Footnote(5) GSL Alexandra 8,544 37,777 2004 Maersk 3Q25 3Q26 Footnote(6) GSL Sofia 8,544 37,777 2003 Maersk 3Q25 3Q26 Footnote(6) GSL Effie 8,544 37,777 2003 Maersk 3Q25 3Q26 Footnote(6) GSL Lydia 8,544 37,777 2003 Maersk 2Q25 3Q26 Footnote(6) GSL Eleni 7,847 29,261 2004 Maersk 3Q24 1Q25 16,500 GSL Kalliopi 7,847 29,105 2004 Maersk 3Q24 4Q24 18,900 GSL Grania 7,847 29,190 2004 Maersk 3Q24 1Q25 17,750 Colombia Express (ex Mary)(1)(19) 6,927 23,424 2013 Hapag-Lloyd(7) 4Q28 1Q31(7) Footnote(7) Kristina(1) 6,927 23,421 2013 CMA CGM(7) 3Q29 4Q31(7) 25,910(7) Katherine(1) 6,927 23,403 2013 CMA CGM(7) 2Q29 3Q31(7) 25,910(7) Alexandra(1) 6,927 23,348 2013 CMA CGM(7) 2Q29 3Q31(7) 25,910(7) Alexis(1) 6,882 23,919 2015 CMA CGM(7) 2Q29 3Q31(7) 25,910(7) Olivia I(1) 6,882 23,864 2015 CMA CGM(7) 2Q29 3Q31(7) 25,910(7) GSL Christen 6,840 27,954 2002 OOCL 3Q24 4Q24 20,500 GSL Nicoletta 6,840 28,070 2002 Maersk 3Q24 1Q25 35,750 CMA CGM Berlioz 6,621 26,776 2001 CMA CGM 4Q25 2Q26 37,750 Agios Dimitrios 6,572 24,931 2011 MSC 2Q27 3Q27 20,000(4) GSL Vinia 6,080 23,737 2004 Maersk 3Q24 1Q25 13,250 GSL Christel Elisabeth 6,080 23,745 2004 Maersk 2Q24 1Q25 13,250 GSL Dorothea 5,992 24,243 2001 Maersk 2Q25