Solidifies Industry Leading Position Through Accretive Acquisition of GCI
Hong Kong, May 2, 2018 /CNW/
Seaspan Corporation ("Seaspan") (NYSE: SSW) announced today its financial results for the quarter ended March 31, 2018.
Seaspan Reports Financial Results for the Quarter Ended March 31, 2018 (CNW Group/Seaspan Corporation)
Key Financial Metrics
• Total revenues of $224.8 million.
• Reported net earnings of $67.7 million.
• Earnings per diluted share of $0.37.
• Normalized earnings per diluted share(1) of $0.13.
• Cash available for distribution to common shareholders(1) of $65.5 million.
• Adjusted EBITDA(1) of $135.2 million.
• Completed accretive acquisition with an implied enterprise value of $1.6 billion of the remaining 89% that Seaspan did not own of Greater China Intermodal Investments LLC ("GCI").
• Secured a total of $500 million in capital from affiliates of Fairfax Financial Holdings Limited ("Fairfax"), with $250 million received during the quarter and $250 million to be funded in January 2019.
• Achieved vessel utilization of 96.8% for the quarter ended March 31, 2018.
Bing Chen, President and Chief Executive Officer of Seaspan, commented, "The completion of the GCI acquisition during the first quarter solidified our industry leading position and achieved a number of important strategic objectives for the Company while being accretive to earnings per share. On the strategic side, the acquisition of GCI improved our fleet composition as we increased our exposure to larger, more modern containerships that are in demand by our customers. In addition, we expanded our relationships with our customers, significantly increasing our contracted future revenue and EBITDA. Finally, the GCI acquisition provided an opportunity for Seaspan to expand its partnership with Fairfax and other financing partners, reinforcing the strength of our integrated platform."
Mr. Chen continued, "Over the past few months, we have made significant progress across multiple areas within the Company. We continue to remain focused on operational excellence by providing best in class integrated solutions and service to our customers. Importantly, our industry remains fragmented, and we are actively seeking opportunities to grow our business and improve our returns on invested capital. In doing so, we remain disciplined in evaluating and executing on growth opportunities in order to generate long term shareholder value."
Seaspan Corporation press release