Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Current Assets: | ||
| Due from charterers, reserve | $ 1,635 | $ 669 |
| Noncurrent assets: | ||
| Vessels, accumulated depreciation | 239,893 | 204,201 |
| Deferred drydock, accumulated amortization | 11,649 | 8,124 |
| Fixed assets, accumulated depreciation and amortization | 3,525 | 2,266 |
| Deferred financing costs, noncurrent | $ 8,229 | $ 9,653 |
| Genco Shipping & Trading Limited shareholders' equity: | ||
| Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
| Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
| Common stock, shares issued (in shares) | 41,924,597 | 41,801,753 |
| Common stock, shares outstanding (in shares) | 41,924,597 | 41,801,753 |
Consolidated Statements of Operations - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| Revenues: | ||||
| Revenues | $ 155,252 | $ 87,524 | $ 363,851 | $ 260,066 |
| Operating expenses: | ||||
| Voyage expenses | 37,797 | 33,487 | 109,572 | 123,550 |
| Vessel operating expenses | 21,788 | 23,460 | 59,622 | 66,332 |
| Charter hire expenses | 8,644 | 1,020 | 22,405 | 5,527 |
| General and administrative expenses (inclusive of nonvested stock amortization expense of $597, $534, $1,670 and $1,491, respectively) | 5,659 | 5,115 | 17,616 | 16,353 |
| Technical management fees | 1,631 | 1,739 | 4,400 | 5,316 |
| Depreciation and amortization | 14,200 | 16,115 | 41,409 | 49,619 |
| Impairment of vessel assets | 21,896 | 134,710 | ||
| Loss on sale of vessels | 159 | 358 | 894 | 844 |
| Total operating expenses | 89,878 | 103,190 | 255,918 | 402,251 |
| Operating income (loss) | 65,374 | (15,666) | 107,933 | (142,185) |
| Other income (expense): | ||||
| Other income (expense) | 84 | (436) | 440 | (900) |
| Interest income | 25 | 101 | 144 | 948 |
| Interest expense | (3,943) | (5,097) | (12,955) | (17,515) |
| Loss on debt extinguishment | (4,408) | (4,408) | ||
| Other expense, net | (8,242) | (5,432) | (16,779) | (17,467) |
| Net income (loss) | $ 57,132 | $ (21,098) | $ 91,154 | $ (159,652) |
| Net earnings (loss) per share-basic | $ 1.36 | $ (0.50) | $ 2.17 | $ (3.81) |
| Net earnings (loss) per share-diluted | $ 1.34 | $ (0.50) | $ 2.14 | $ (3.81) |
| Weighted average common shares outstanding-basic | 42,095,211 | 41,928,682 | 42,047,115 | 41,898,756 |
| Weighted average common shares outstanding-diluted | 42,750,836 | 41,928,682 | 42,548,187 | 41,898,756 |
| Voyage | ||||
| Revenues: | ||||
| Revenues | $ 155,252 | $ 87,524 | $ 363,851 | $ 260,066 |
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| Consolidated Statements of Operations | ||||
| Nonvested stock amortization expenses | $ 597 | $ 534 | $ 1,670 | $ 1,491 |
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
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| Consolidated Statements of Comprehensive Income (Loss) | ||||
| Net income (loss) | $ 57,132 | $ (21,098) | $ 91,154 | $ (159,652) |
| Other comprehensive (loss) income | (98) | 0 | 40 | 0 |
| Comprehensive income (loss) | $ 57,034 | $ (21,098) | $ 91,194 | $ (159,652) |
Consolidated Statements of Equity (Parenthetical) - $ / shares |
3 Months Ended | |||||
|---|---|---|---|---|---|---|
Sep. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
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| Consolidated Statements of Equity | ||||||
| Dividends declared per share | $ 0.10 | $ 0.05 | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.175 |
GENERAL INFORMATION |
9 Months Ended |
|---|---|
Sep. 30, 2021 | |
| GENERAL INFORMATION | |
| GENERAL INFORMATION | 1 - GENERAL INFORMATION The accompanying Condensed Consolidated Financial Statements include the accounts of Genco Shipping & Trading Limited (“GS&T”) and its direct and indirect subsidiaries (collectively, the “Company”). The Company is engaged in the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels and operates in one business segment. At September 30, 2021, the Company’s fleet consisted of 43 drybulk vessels, including 17 Capesize drybulk carriers, 13 Ultramax drybulk carriers and 13 Supramax drybulk carriers, with an aggregate carrying capacity of approximately 4,568,600 dwt and an average age of approximately 10.2 years. During September 2021, the Company and Synergy Marine Pte. Ltd. (“Synergy”), a third party, formed a joint venture, GS Shipmanagement Pte. Ltd. (“GSSM”). GSSM is owned 50% by the Company and 50% by Synergy as of September 30, 2021, and was formed to provide ship management services to the Company’s vessels. As of September 30, 2021, the investments GSSM received from the Company and Synergy totaled $50 and $50, respectively, which were used for expenditures directly related to the operations of GSSM. Management has determined that GSSM qualifies as a variable interest entity, and, when aggregating the variable interest held by the Company and Synergy, the Company is the primary beneficiary as the Company has the ability to direct the activities that most significantly impact GSSM’s economic performance. Accordingly, the Company consolidates GSSM. The effect on the financial statements during the three and nine months ended September 30, 2021 was immaterial. In March 2020, the World Health Organization declared the outbreak of a novel coronavirus strain, or COVID-19, to be a pandemic. The COVID-19 pandemic is having widespread, rapidly evolving, and unpredictable impacts on global society, economies, financial markets, and business practices. Over the course of the pandemic, governments have implemented measures in an effort to contain the virus, including social distancing, travel restrictions, border closures, limitations on public gatherings, working from home, supply chain logistical changes, and closure of non-essential businesses. This led to a significant slowdown in overall economic activity levels globally and a decline in demand for certain of the raw materials that our vessels transport. At present, it is not possible to ascertain any future impact of COVID-19 on the Company’s operational and financial performance, which may take some time to materialize and may not be fully reflected in the results for 2021. However, an increase in the severity or duration or a resurgence of the COVID-19 pandemic, any potential variants and the timing of wide-scale vaccine distribution could have a material adverse effect on the Company’s business, results of operations, cash flows, financial condition, the carrying value of the Company’s assets, the fair values of the Company’s vessels, and the Company’s ability to pay dividends. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which includes the accounts of GS&T and its direct and indirect wholly-owned subsidiaries and GSSM. All intercompany accounts and transactions have been eliminated in consolidation. Basis of presentation The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with U.S. GAAP for interim financial information and the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management of the Company, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and operating results have been included in the statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These Condensed Consolidated Financial Statements should be read in conjunction with the financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2020 (the “2020 10-K”). The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the operating results to be expected for the year ending December 31, 2021. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include vessel valuations, the valuation of amounts due from charterers, residual value of vessels, useful life of vessels, the fair value of time charters acquired, and the fair value of derivative instruments, if any. Actual results could differ from those estimates. Cash, cash equivalents and restricted cash The Company considers highly liquid investments, such as money market funds and certificates of deposit with an original maturity of three months or less at the time of purchase to be cash equivalents. Current and non-current restricted cash includes cash that is restricted pursuant to our credit facilities. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same amounts shown in the Condensed Consolidated Statements of Cash Flows:
Vessels held for sale
The Company’s Board of Directors has approved a strategy of divesting specifically identified older, less fuel-efficient vessels as part of a fleet renewal program to streamline and modernize the Company’s fleet. On July 16, 2021, the Company entered into an agreement to sell the Genco Provence. The relevant vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheet as of September 30, 2021. The sale of the Genco Provence was completed on November 2, 2021. Refer to Note 4 — Vessel Acquisitions and Dispositions for details of the agreement. On November 3, 2020, November 27, 2020 and November 30, 2020, the Company entered into agreements to sell the Baltic Panther, the Baltic Hare and the Baltic Cougar, respectively. The relevant vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheet as of December 31, 2020. The Baltic Panther, the Baltic Hare and the Baltic Cougar were sold on January 4, 2021, January 15, 2021 and February 24, 2021, respectively. Vessels held for exchange The remaining five vessel assets to be exchanged as part of an agreement entered into by the Company on December 17, 2020 have been classified as vessels held for exchange in the Condensed Consolidated Balance Sheet as of December 31, 2020 in the amount of $38,214, after recognition of impairment. This includes the vessel assets for the Baltic Cove, the Baltic Fox, the Genco Avra, the Genco Mare and the Genco Spirit. These vessels were exchanged during the first quarter of 2021. Refer to Note 4 — Vessel Acquisitions and Dispositions for details of the agreement. Voyage expense recognition In time charters, spot market-related time charters and pool agreements, operating costs including crews, maintenance and insurance are typically paid by the owner of the vessel and specified voyage costs such as fuel and port charges are paid by the charterer. These expenses are borne by the Company during spot market voyage charters. As such, there are significantly higher voyage expenses for spot market voyage charters as compared to time charters, spot market-related time charters and pool agreements. Refer to Note 11 — Voyage Revenues for further discussion of the accounting for fuel expenses for spot market voyage charters. There are certain other non-specified voyage expenses, such as commissions, which are typically borne by the Company. At the inception of a time charter, the Company records the difference between the cost of bunker fuel delivered by the terminating charterer and the bunker fuel sold to the new charterer as a gain or loss within voyage expenses. Additionally, the Company records lower of cost and net realizable value adjustments to re-value the bunker fuel on a quarterly basis for certain time charter agreements where the inventory is subject to gains and losses. These differences in bunkers, including any lower of cost and net realizable value adjustments, resulted in a net (gain) loss of ($176) and ($392) during the three months ended September 30, 2021 and 2020, respectively, and ($1,113) and $1,407 during the nine months ended September 30, 2021 and 2020, respectively. Additionally, voyage expenses include the cost of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement. Technical management fees Technical management fees represent fees paid to third party technical management companies for the day-to-day management of our vessels, including performing routine maintenance, attending to vessel operation and arranging for crews and supplies. In addition, technical management fees also include the direct costs incurred by GSSM for the technical management of the vessels under its management. Impairment of vessel assets During the three and nine months ended September 30, 2021, the Company did not incur any impairment of vessel assets in accordance with Accounting Standards Codification (“ASC”) 360 — “Property, Plant and Equipment” (“ASC 360”). During the three and nine months ended September 30, 2020, the Company recorded $21,896 and $134,710, respectively, related to the impairment of vessel assets in accordance with ASC 360. On November 3, 2020, the Company entered into an agreement to sell the Baltic Panther, a 2009-built Supramax vessel, to a third party for $7,510 less a 3.0% commission payable to a third party. As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of September 30, 2020, the vessel value for the Baltic Panther was adjusted to its net sales price of $7,285 as of September 30, 2020. This resulted in an impairment loss of $3,711 during the three and nine months ended September 30, 2020. On October 16, 2020, the Company entered into an agreement to sell the Genco Loire, a 2009-built Supramax vessel, to a third party for $7,650 less a 2.0% commission payable to a third party. As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of September 30, 2020, the vessel value for the Genco Loire was adjusted to its net sales price of $7,497 as of September 30, 2020. This resulted in an impairment loss of $3,407 during the three and nine months ended September 30, 2020. On September 30, 2020, the Company determined that the expected estimated future undiscounted cash flows for three of its Supramax vessels, the Genco Lorraine, the Baltic Cougar and the Baltic Leopard, did not exceed the net book value of these vessels as of September 30, 2020. The Company adjusted the carrying value of these vessels to their respective fair market values as of September 30, 2020. This resulted in an impairment loss of $7,963 during the three and nine months ended September 30, 2020. On September 25, 2020, the Company entered into an agreement to sell the Baltic Jaguar, a 2009-built Supramax vessel, to a third party for $7,300 less a 3.0% commission payable to a third party. Therefore, the vessel value for the Baltic Jaguar was adjusted to its net sales price of $7,081 as of September 30, 2020. This resulted in an impairment loss of $4,138 during the three and nine months ended September 30, 2020. On September 17, 2020, the Company entered in an agreement to sell the Genco Normandy, a 2007-built Supramax vessel, to a third party for $5,850 less a 2.0% commission payable to a third party. Therefore, the vessel value for the Genco Normandy was adjusted to its net sales price of $5,733 as of September 30, 2020. This resulted in an impairment loss of $2,677 during the three and nine months ended September 30, 2020. At March 31, 2020, the Company determined that the expected estimated future undiscounted cash flows for four of its Supramax vessels, the Genco Picardy, the Genco Predator, the Genco Provence and the Genco Warrior, did not exceed the net book value of these vessels as of March 31, 2020. The Company adjusted the carrying value of these vessels to their respective fair market values as of March 31, 2020. This resulted in an impairment loss of $27,046 during the nine months ended September 30, 2020. On February 24, 2020, the Board of Directors determined to dispose of the Company’s following ten Handysize vessels: the Baltic Hare, the Baltic Fox, the Baltic Wind, the Baltic Cove, the Baltic Breeze, the Genco Ocean, the Genco Bay, the Genco Avra, the Genco Mare and the Genco Spirit, at times and on terms to be determined in the future. Given this decision, and that the revised estimated future undiscounted cash flows for each of these older vessels did not exceed the net book value for each vessel given the estimated probabilities of whether the vessels will be sold, the Company adjusted the values of these older vessels to their respective fair market values during the three months ended March 31, 2020. Subsequent to February 24, 2020, the Company entered into agreements to sell three of these vessels during the three months ended March 31, 2020, namely the Baltic Wind, the Baltic Breeze and the Genco Bay, which were adjusted to their net sales price. This resulted in an impairment loss of $85,768 during the nine months ended September 30, 2020. Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale of certain aforementioned vessels. Loss on sale of vessels During the three months ended September 30, 2021, the Company recorded a net loss of $159 related primarily to the sale of the Genco Lorraine. The net loss of $894 recorded during the nine months ended September 30, 2021 related primarily to the sale of the Baltic Panther, Baltic Hare, Baltic Cougar, Baltic Leopard and Genco Lorraine, as well as net losses associated with the exchange of the Baltic Cove, Baltic Fox, Genco Spirit, Genco Avra and Genco Mare. During the three months ended September 30, 2020, the Company recorded a net loss of $358 related primarily to the sale of the Baltic Wind and Baltic Breeze. During the nine months ended September 30, 2020, the Company recorded a net loss of $844 related primarily to the sale of the Genco Charger, Genco Thunder, Baltic Wind and Baltic Breeze. Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale of these vessels. Loss on debt extinguishment During the three and nine months ended September 30, 2021, the Company recorded $4,408 related to the loss on the extinguishment of debt in accordance with ASC 470-50 — “Debt – Modifications and Extinguishments” (“ASC 470-50”). This loss was recognized as a result of the refinancing of the $495 Million Credit Facility and the $133 Million Credit Facility with the $450 Million Credit Facility on August 31, 2021 as described in Note 7 — Debt. Recent accounting pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”)” which provides temporary optional expedients and exceptions to the guidance in U.S. GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848) – Scope (“ASU 2021-01”),” which permits entities to apply optional expedients in Topic 848 to derivative instruments modified because of discounting transition resulting from reference rate reform. ASU 2020-04 became effective upon issuance and may be applied prospectively to contract modification made on or before December 31, 2022. ASU 2021-01 became effective upon issuance and may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or prospectively for contract modification made on or before December 31, 2022. The Company is currently evaluating the impact of the adoption of ASU 2020-04 and ASU 2021-01 on its Condensed Consolidated Financial Statements and related disclosures. |
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CASH FLOW INFORMATION |
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| CASH FLOW INFORMATION | |||||||||||||||||||||||||||||||||||||||||||||||||
| CASH FLOW INFORMATION | 3 - CASH FLOW INFORMATION For the nine months ended September 30, 2021, the Company had non-cash investing activities not included in the Condensed Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $512 for the Purchase of vessels and ballast water treatment systems, including deposits, $6 for the Purchase of Scrubbers and $199 for the Purchase of other fixed assets. For the nine months ended September 30, 2021, the Company had non-cash financing activities not included in the Condensed Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expense consisting of $114 for Cash dividends payable and $620 associated with the Payment of deferred financing costs. For the nine months ended September 30, 2020, the Company had non-cash investing activities not included in the Condensed Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $1,241 for the Purchase of vessels and ballast water treatment systems, including deposits, $25 for the Purchase of scrubbers, $451 for the Purchase of other fixed assets and $123 for the Net proceeds from sale of vessels. For the nine months ended September 30, 2020, the Company had non-cash financing activities not included in the Condensed Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expense consisting of $108 for Cash dividends payable. During the nine months ended September 30, 2021 and 2020, cash paid for interest, net of amounts capitalized, was $9,888 and $14,577, respectively. During the nine months ended September 30, 2021 and 2020, there was no cash paid for income taxes. During the nine months ended September 30, 2021, the Company made a total reclassification of $6,964 from Vessels, net of accumulated depreciation and Deferred drydocking, net of accumulated amortization to Vessels held for sale as the Company entered into an agreement to sell the Genco Provence prior to September 30, 2021. Refer to Note 4 — Vessel Acquisitions and Dispositions. During the nine months ended September 30, 2020, the Company made a reclassification of $20,889 from Vessels, net of accumulated depreciation to Vessels held for sale as the Company entered into agreements to sell the Genco Bay, Baltic Jaguar and Genco Normandy prior to September 30, 2020. Refer to Note 4 — Vessel Acquisitions and Dispositions. On May 13, 2021, the Company issued 33,525 restricted stock units to certain members of the Board of Directors. The aggregate fair value of these restricted stock units was $515. On May 4, 2021, the Company issued 18,428 restricted stock units to the Chairman of the Board. The aggregate fair value of these restricted stock units was $300. On February 23, 2021, the Company issued 103,599 restricted stock units and options to purchase 118,552 shares of the Company’s stock at an exercise price of $9.91 to certain individuals. The fair value of these restricted stock units and stock options were $1,027 and $513, respectively. On July 15, 2020, the Company issued 42,642 restricted stock units to certain members of the Board of Directors. The aggregate fair value of these restricted stock units was $255. On February 25, 2020, the Company issued 173,749 restricted stock units and options to purchase 344,568 shares of the Company’s stock at an exercise price of $7.06 to certain individuals. The fair value of these restricted stock units and stock options were $1,227 and $693, respectively. Refer to Note 14 — Stock-Based Compensation for further information regarding the aforementioned grants. Supplemental Condensed Consolidated Cash Flow information related to leases is as follows:
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VESSEL ACQUISITIONS AND DISPOSITIONS |
9 Months Ended |
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Sep. 30, 2021 | |
| VESSEL ACQUISITIONS AND DISPOSITIONS | |
| VESSEL ACQUISITIONS AND DISPOSITIONS | 4 - VESSEL ACQUISITIONS AND DISPOSITIONS Vessel Acquisitions On July 2, 2021, the Company entered into an agreement to purchase two 2017-built, 63,000 dwt Ultramax vessels for a purchase price of $24,563 each, to be renamed the Genco Mayflower and Genco Constellation, and one 2014-built, 63,000 dwt Ultramax vessel for a purchase price of $21,875, to be renamed the Genco Madeleine. The Genco Mayflower, the Genco Constellation and the Genco Madeleine were delivered on August 24, 2021, September 3, 2021 and August 23, 2021, respectively. The Company used cash on hand to finance the purchase. These three vessels had existing below market time charters at the time of the acquisition during the third quarter of 2021; therefore the Company recorded the fair market value of time charters acquired of $4,263 which is being amortized as an increase to voyage revenues during the remaining term of each respective time charter. During the three and nine months ended September 30, 2021, $2,043 was amortized into voyage revenues. The remaining unamortized fair market value of time charters acquired as of September 30, 2021 is $2,220 and will be amortized into voyage revenues during the fourth quarter of 2021. On May 18, 2021, the Company entered into agreements to acquire two 2022-built 61,000 dwt newbuilding Ultramax vessels from Dalian Cosco KHI Ship Engineering Co. Ltd. for a purchase price of $29,170 each, to be renamed the Genco Mary and the Genco Laddey. The vessels are expected to be delivered to the Company during January 2022. The Company intends to use a combination of cash on hand and credit facility borrowings to finance the purchase. As of September 30, 2021, deposits on vessels were $17,702. The remaining purchase price for these vessels, which is expected to be paid during the first quarter of 2022 upon delivery of the vessels, is $40,838. Capitalized interest expense associated with these newbuilding contracts for the three and nine months ended September 30, 2021 was $132 and $186, respectively. On April 20, 2021, the Company entered into an agreement to purchase a 2016-built, 64,000 dwt Ultramax vessel for a purchase price of $20,200, to be renamed the Genco Enterprise. The vessel delivered to the Company on August 23, 2021, and the Company used cash on hand to finance the purchase. Vessel Exchange On December 17, 2020, the Company entered into an agreement to acquire three Ultramax vessels in exchange for six Handysize vessels for a fair value of $46,000 less a 1.0% commission payable to a third party. The Genco Magic, a 2014-built Ultramax vessel, and the Genco Vigilant and the Genco Freedom, both 2015-built Ultramax vessels, were delivered to the Company on December 23, 2020, January 28, 2021 and February 20, 2021, respectively. The Genco Ocean, the Baltic Cove and the Baltic Fox, all 2010-built Handysize vessels, were delivered to the buyers on December 29, 2020, January 30, 2021 and February 2, 2021, respectively. The Genco Spirit, the Genco Avra and the Genco Mare, all 2011-built Handysize vessels, were delivered to the buyers on February 15, 2021, February 21, 2021 and February 24, 2021, respectively. As of December 31, 2020, the vessel assets for the Baltic Cove, the Baltic Fox, the Genco Avra, the Genco Mare and the Genco Spirit have been classified as held for exchange in the Condensed Consolidated Balance Sheet. Vessel Dispositions On July 16, 2021, the Company entered into an agreement to sell the Genco Provence, a 2004-built Supramax vessel, to a third party for $13,250 less a 2.5% commission payable to a third party. The sale was completed on November 2, 2021. The vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheet as of September 30, 2021. On January 25, 2021, the Company entered into an agreement to sell the Baltic Leopard, a 2009-built Supramax vessel, to a third party for $8,000 less a 2.0% commission payable to a third party. The sale was completed on April 8, 2021. On January 22, 2021, the Company entered into an agreement to sell the Genco Lorraine, a 2009-built Supramax vessel, to a third party for $7,950 less a 2.5% commission payable to a third party. The sale was completed on July 6, 2021. During November 2020, the Company entered into agreements to sell the Baltic Cougar, the Baltic Hare and the Baltic Panther. These vessels have been classified as held for sale in the Condensed Consolidated Balance Sheet as of December 31, 2020. The sale of the Baltic Hare, Baltic Panther and Baltic Cougar were completed on January 15, 2021, January 4, 2021 and February 24, 2021, respectively. As of December 31, 2020, the Company recorded $35,492 of current restricted cash in the Condensed Consolidated Balance Sheets which represents the net proceeds received from the sale of eight vessels that served as collateral under the $495 Million Credit Facility. The net proceeds for each vessel remained classified as restricted cash for 360 days following the respective sale dates. These amounts could be used towards the financing of a replacement vessel or vessels meeting certain requirements and added as collateral under the facility. If such a replacement vessel was not added as collateral within such 360 day period, the Company was required to use the proceeds as a loan prepayment. There was no current restricted cash recorded as of September 30, 2021 as the $495 Million Credit Facility was refinanced with the $450 Million Credit Facility on August 31, 2021. Refer to Note 7 — Debt for further information. Refer to the “Impairment of vessel assets” and “Loss on sale of vessels” sections in Note 2 — Summary of Significant Accounting Policies for discussion of impairment expense and the net loss on sale of vessels recorded during the three and nine months ended September 30, 2021 and 2020. |
NET EARNINGS (LOSS) PER SHARE |
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| NET EARNINGS (LOSS) PER SHARE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NET EARNINGS (LOSS) PER SHARE | 5 – NET EARNINGS (LOSS) PER SHARE The computation of basic net earnings (loss) per share is based on the weighted-average number of common shares outstanding during the reporting period. The computation of diluted net earnings (loss) per share assumes the vesting of nonvested stock awards and the exercise of stock options (refer to Note 14 — Stock-Based Compensation), for which the assumed proceeds upon vesting are deemed to be the amount of compensation cost attributable to future services and are not yet recognized using the treasury stock method, to the extent dilutive. There were 213,008 restricted stock units and 442,617 stock options that were dilutive during the three months ended September 30, 2021. There were 209,755 restricted stock units and 291,317 stock options that were dilutive during the nine months ended September 30, 2021. There were 298,716 restricted stock units and 837,338 stock options excluded from the computation of diluted net loss per share during the three and nine months ended September 30, 2020 because they were anti-dilutive (refer to Note 14 — Stock-Based Compensation). The Company’s diluted net earnings (loss) per share will also reflect the assumed conversion of the equity warrants issued when the Company emerged from bankruptcy on July 9, 2014 (the “Effective Date”) and MIP Warrants issued by the Company (refer to Note 14 — Stock-Based Compensation) if the impact is dilutive under the treasury stock method. The equity warrants have a 7-year term that commenced on the day following the Effective Date and are exercisable for tenth of a share of the Company’s common stock. All MIP Warrants during the three and nine months ended September 30, 2020 were excluded from the computation of diluted net earnings (loss) per share because they were anti-dilutive. The MIP Warrants expired on August 7, 2020. There were 3,936,761 equity warrants excluded from the computation of diluted net earnings (loss) per share during the three and nine months ended September 30, 2021 and 2020 because they were anti-dilutive. These equity warrants expired at 5:00 p.m. on July 9, 2021 without exercise. The components of the denominator for the calculation of basic and diluted net earnings (loss) per share are as follows:
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RELATED PARTY TRANSACTIONS |
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| RELATED PARTY TRANSACTIONS | 6 - RELATED PARTY TRANSACTIONS During the three and nine months ended September 30, 2021 and 2020, the Company did not have any related party transactions.
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DEBT |
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| DEBT | 7 – DEBT Long-term debt, net consists of the following:
As of September 30, 2021 and December 31, 2020, $8,229 and $9,653 of deferred financing costs, respectively, were presented as a direct deduction within the outstanding debt balance in the Company’s Condensed Consolidated Balance Sheets. Effective August 31, 2021, the portion of the unamortized deferred financing costs for the $495 Million Credit Facility and the $133 Million Credit Facility that was identified as a debt modification, rather than an extinguishment of debt, is being amortized over the life of the $495 Million Credit Facility in accordance with ASC 470-50. $450 Million Credit Facility On August 3, 2021, the Company entered into the $450 Million Credit Facility, a five-year senior secured credit facility which is allocated between an up to $150,000 term loan facility and an up to $300,000 revolving credit facility which was used to refinance the Company’s $495 Million Credit Facility and its $133 Million Credit Facility. On August 31, 2021, proceeds of $350,000 under the $450 Million Credit Facility were used, together with cash on hand, to refinance all of the Company’s existing credit facilities (the $495 Million Credit Facility and the $133 Million Credit Facility, as described below) into one facility. $150,000 was drawn down under the term loan facility and $200,000 was drawn down under the revolving credit facility. The key terms associated with the $450 Million Credit Facility are as follows:
As of September 30, 2021, there was $137,530 of availability under the $450 Million Credit Facility. Total debt repayments of $45,000 were made during the three and nine months ended September 30, 2021 under the $450 Million Credit Facility. As of September 30, 2021, the Company was in compliance with all of the financial covenants under the $450 Million Credit Facility. $495 Million Credit Facility On May 31, 2018, the Company entered into the $460 Million Credit Facility, a five-year senior secured credit facility for an aggregate amount of up to $460,000 which was used to (i) refinance all of the Company’s prior credit facilities into one facility and (ii) pay down the debt on seven of the Company’s oldest vessels, which have been sold. On February 28, 2019, the Company entered into an amendment to the $460 Million Credit Facility, which provided an additional tranche of up to $35,000 to finance a portion of the acquisitions, installations, and related costs for scrubbers for 17 of the Company’s Capesize vessels (as so amended, the “$495 Million Credit Facility”). On June 5, 2020, the Company entered into an amendment to the $495 Million Credit Facility to extend the period that collateral vessels can be sold or disposed of without prepayment of the loan if a replacement vessel or vessels meeting certain requirements are included as collateral from 180 days to 360 days. On February 18, 2021 and February 26, 2021, the Company utilized $3,471 and $5,339 of the proceeds from the sale of the Genco Charger and Genco Thunder, respectively, as loan prepayment under these terms. These amounts were classified as restricted cash in the Condensed Consolidated Balance Sheet as of December 31, 2020 and are included in the total debt repayments below. As a result of the loan prepayments for vessel sales, scheduled amortization payments were recalculated in accordance with the terms of the facility during April 2021. Scheduled amortization payments under the $460 million tranche were revised to $12,400 which commenced on June 30, 2021, with a final payment of $189,605 due on the maturity date. On December 17, 2020, the Company entered into an amendment to the $495 Million Credit Facility that allowed the Company to enter into a vessel transaction in which the Company agreed to acquire three Ultramax vessels in exchange for six of the Company’s Handysize vessels. Refer to Note 4 — Vessel Acquisitions and Dispositions. On August 28, 2019, September 23, 2019 and March 12, 2020, the Company made total drawdowns of $9,300, $12,200 and $11,250, respectively, under the $35 million tranche of the $495 Million Credit Facility. Scheduled quarterly repayments under this tranche were $2,339. On June 7, 2021, the Company repaid the remaining outstanding balance under the $35 million tranche of $20,013. Total debt repayments of $276,405 and $16,660 were made during the three months ended September 30, 2021 and 2020 under the $495 Million Credit Facility, respectively. Total debt repayments of $334,288 and $49,981 were made during the nine months ended September 30, 2021 and 2020 under the $495 Million Credit Facility, respectively. On August 31, 2021, the $495 Million Credit Facility was refinanced with the $450 Million Credit Facility; refer to the “$450 Million Credit Facility” section above.
$133 Million Credit Facility On August 14, 2018, the Company entered into the $108 Million Credit Facility, a five-year senior secured credit facility that was used to finance a portion of the purchase price of six vessels, which also serve as collateral under the facility, which were delivered to the Company during the three months ended September 30, 2018. On June 11, 2020, the Company entered into an amendment and restatement agreement to the $108 Million Credit Facility that provided for a revolving credit facility of up to $25,000 (the “Revolver”) for general corporate and working capital purposes (as so amended, the “$133 Million Credit Facility”). The key terms associated with the Revolver were as follows:
The collateral and financial covenants otherwise remained substantially the same as they were under the $108 Million Credit Facility. On June 15, 2020, the Company drew down $24,000 under the Revolver of the $133 Million Credit Facility. On March 31, 2021, the Company repaid the remaining $21,160 outstanding balance under the Revolver from this drawdown. Total debt repayments of $90,620 and $2,380 were made during the three months ended September 30, 2021 and 2020 under the $133 Million Credit Facility, respectively. Total debt repayments of $114,940 and $5,660 were made during the nine months ended September 30, 2021 and 2020 under the $133 Million Credit Facility, respectively. On August 31, 2021, the $133 Million Credit Facility was refinanced with the $450 Million Credit Facility; refer to the “$450 Million Credit Facility” section above.
Interest rates The following table sets forth the effective interest rate associated with the interest expense for the Company’s debt facilities noted above, including the cost associated with unused commitment fees, if applicable. The following table also includes the range of interest rates on the debt, excluding the impact of unused commitment fees, if applicable:
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DERIVATIVE INSTRUMENTS |
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| INTEREST RATE CAP AGREEMENTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DERIVATIVE INSTRUMENTS | 8 – DERIVATIVE INSTRUMENTS The Company is exposed to interest rate risk on its floating rate debt. As of September 30, 2021, the Company had three interest rate cap agreements outstanding to manage interest costs and the risk associated with variable interest rates. The three interest rate cap agreements have been designated and qualify as cash flow hedges. The premium paid is recognized in income on a rational basis, and all changes in the value of the caps are deferred in Accumulated other comprehensive income (“AOCI”) and are subsequently reclassified into Interest expense in the period when the hedged interest affects earnings. The following table summarizes the interest rate cap agreements in place as of September 30, 2021.
The Company records the fair value of the interest rate caps as Fair value of derivatives in the non-current asset section on its Condensed Consolidated Balance Sheets. The Company has elected to use the income approach to value the interest rate derivatives using observable Level 2 market expectations at the measurement date and standard valuation techniques to convert future amounts to a single present amount (discounted) reflecting current market expectations about those future amounts. Level 2 inputs for derivative valuations are limited to quoted prices for similar assets or liabilities in active markets (specifically futures contracts) and inputs other than quoted prices that are observable for the asset or liability (specifically LIBOR cash and swap rates, implied volatility, basis swap adjustments, and credit risk at commonly quoted intervals). Mid-market pricing is used as a practical expedient for most fair value measurements. The Company recorded a $98 loss and a $40 gain for the three and nine months ended September 30, 2021, respectively, in AOCI. The estimated income that is currently recorded in AOCI as of September 30, 2021 that is expected to be reclassified into earnings within the next twelve months is $169.
The following table shows the interest rate cap assets as of September 30, 2021:
The components of AOCI included in the accompanying Condensed Consolidated Balance Sheet consists of net unrealized gain (loss) on cash flow hedges as of September 30, 2021.
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FAIR VALUE OF FINANCIAL INSTRUMENTS |
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| FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 - FAIR VALUE OF FINANCIAL INSTRUMENTS The fair values and carrying values of the Company’s financial instruments as of September 30, 2021 and December 31, 2020 which are required to be disclosed at fair value, but not recorded at fair value, are noted below.
The carrying value of the borrowings under the $450 Million Credit as of September 30, 2021 and the $495 Million Credit Facility and the $133 Million Credit Facility as of December 31, 2020, which excludes the impact of deferred financing costs, approximate their fair value due to the variable interest nature thereof as each of these credit facilities represent floating rate loans. The carrying amounts of the Company’s other financial instruments as of September 30, 2021 and December 31, 2020 (principally Due from charterers and Accounts payable and accrued expenses) approximate fair values because of the relatively short maturity of these instruments. ASC Subtopic 820-10, “Fair Value Measurements & Disclosures” (“ASC 820-10”), applies to all assets and liabilities that are being measured and reported on a fair value basis. This guidance enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumption (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 requires significant management judgment. The three levels are defined as follows:
Cash and cash equivalents and restricted cash are considered Level 1 items, as they represent liquid assets with short-term maturities. Floating rate debt is considered to be a Level 2 item, as the Company considers the estimate of rates it could obtain for similar debt or based upon transactions amongst third parties. Interest rate cap agreements are considered to be a Level 2 item. Refer to Note 8 — Derivative Instruments for further information. Nonrecurring fair value measurements include vessel impairment assessments completed during the interim period and at year-end as determined based on third-party quotes, which are based on various data points, including comparable sales of similar vessels, which are Level 2 inputs. There was no vessel impairment recorded during the three and nine months ended September 30, 2021. During the three and nine months ended September 30, 2020, the vessel assets for seven and 21 of the Company’s vessels were written down as part of the impairment recorded during those periods. The vessels held for sale as of September 30, 2021 and December 31, 2020 were written down as part of the impairment recorded during the year ended December 31, 2020. Refer to the “Impairment of vessel assets” section in Note 2 — Summary of Significant Accounting Policies. The fair value determination for the operating lease right-of-use assets was based on third party quotes, which is considered a Level 2 input. Nonrecurring fair value measurements may include impairment tests of the Company’s operating lease right-of-use assets if there are indicators of impairments. During the three and nine months ended September 30, 2021 and 2020, there were no indicators of impairment of the operating lease right-of-use assets. The Company did not have any Level 3 financial assets or liabilities as of September 30, 2021 and December 31, 2020. |
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ACCOUNTS PAYABLE AND ACCRUED EXPENSES |
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| ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 10 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consist of the following:
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VOYAGE REVENUE |
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| VOYAGE REVENUE | 11 – VOYAGE REVENUES Total voyage revenues include revenue earned on fixed rate time charters, spot market voyage charters and spot market-related time charters, as well as the sale of bunkers consumed during short-term time charters. For the three months ended September 30, 2021 and 2020, the Company earned $155,252 and $87,524 of voyage revenues, respectively. For the nine months ended September 30, 2021 and 2020, the Company earned $363,851 and $260,066 of voyage revenue, respectively. Revenue for spot market voyage charters is recognized ratably over the total transit time of the voyage which begins when the vessel arrives at the loading port and ends at the time the discharge of cargo is completed at the discharge port in accordance with ASC 606 — Revenue from Contracts with Customers. Spot market voyage charter agreements do not provide the charterers with substantive decision-making rights to direct how and for what purpose the vessel is used; therefore, revenue from spot market voyage charters is not within the scope of ASC 842 — Leases (“ASC 842”). Additionally, the Company has identified that the contract fulfillment costs of spot market voyage charters consist primarily of the fuel consumption that is incurred by the Company from the latter of the end of the previous vessel employment and the contract date until the arrival at the loading port in addition to any port expenses incurred prior to arrival at the load port, as well as any charter hire expenses for third-party vessels that are chartered in. The fuel consumption and any port expenses incurred prior to arrival at the load port are capitalized and recorded in Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets and are amortized ratably over the total transit time of the voyage from arrival at the loading port until the vessel departs from the discharge port and expensed as part of Voyage Expenses. Similarly, for any third party vessels that are chartered in, the charter hire expenses during this period are capitalized and recorded in Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets and are amortized and expensed as part of Charter hire expenses. During time charter agreements, including fixed rate time charters and spot market-related time charters, the charterers have substantive decision-making rights to direct how and for what purpose the vessel is used. As such, the Company has identified that time charter agreements contain a lease in accordance with ASC 842. During time charter agreements, the Company is responsible for operating and maintaining the vessels. These costs are recorded as vessel operating expenses in the Condensed Consolidated Statements of Operations. The Company has elected the practical expedient that allows the Company to combine lease and non-lease components under ASC 842 as the Company believes (1) the timing and pattern of recognizing revenues for operating the vessel is the same as the timing and pattern of recognizing vessel leasing revenue; and (2) the lease component, if accounted for separately, would be classified as an operating lease. Total voyage revenues recognized in the Condensed Consolidated Statements of Operations includes the following:
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LEASES |
9 Months Ended |
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Sep. 30, 2021 | |
| LEASES | |
| LEASES | 12 - LEASES On June 14, 2019, the Company entered into a sublease agreement for a portion of the leased space for its main office in New York, New York that commenced on July 26, 2019 and will end on September 29, 2025. There was $306 of sublease income recorded during the three months ended September 30, 2021 and 2020 and $918 of sublease income recorded during the nine months ended September 30, 2021 and 2020. Sublease income is recorded net with the total operating lease costs in General and administrative expenses in the Condensed Consolidated Statements of Operations. The Company charters in third-party vessels and the Company is the lessee in these agreements under ASC 842. The Company has elected the practical expedient under ASC 842 to not recognize right-of-use assets and lease liabilities for short-term leases. During the three and nine months ended September 30, 2021 and 2020, all charter-in agreements for third-party vessels were less than twelve months and considered short-term leases. |
COMMITMENTS AND CONTINGENCIES |
9 Months Ended |
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Sep. 30, 2021 | |
| COMMITMENTS AND CONTINGENCIES | |
| COMMITMENTS AND CONTINGENCIES | 13 – COMMITMENTS AND CONTINGENCIES During the second half of 2018, the Company entered into agreements for the purchase of ballast water treatments systems (“BWTS”) for 36 of its vessels. The cost of these systems vary based on the size and specifications of each vessel and whether the systems will be installed in China during the vessels’ scheduled drydockings. Based on the contractual purchase price of the BWTS and the estimated installation fees, the Company estimates the cost of the systems to be approximately $0.9 million for Capesize vessels and $0.6 million for Supramax vessels. These costs are capitalized and depreciated over the remainder of the life of the vessels. Prior to any adjustments for vessel impairment and vessel sales, the Company recorded cumulatively $18,724 and $17,009 in Vessel assets in the Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020, respectively, related to BWTS additions. Excluding any installation fees, the Company expects to pay $345 during the remainder of 2021 and $3,909 during the year ending December 31, 2022 for BWTS equipment.
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STOCK-BASED COMPENSATION |
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| STOCK-BASED COMPENSATION | 14 - STOCK-BASED COMPENSATION 2015 Equity Incentive Plan On March 19, 2021, the Board of Directors approved an amendment and restatement of the 2015 Equity Incentive Plan (the “Amended 2015 Plan”). This amendment and restatement increased the number of shares available for awards under the plan from 2,750,000 to 4,750,000, subject to shareholder approval. The Company’s shareholders approved the increase in the number of shares at the Company’s 2021 Annual Meeting of Shareholders on May 13, 2021. As of September 30, 2021, the Company has awarded restricted stock units, restricted stock and stock options under the Amended 2015 Plan. Stock Options On February 23, 2021, the Company issued options to purchase 118,552 of the Company’s shares of common stock to certain individuals with an exercise price of $9.91 per share. third of the options become exercisable on each of the first anniversaries of February 23, 2021, with accelerated vesting that may occur following a change in control of the Company, and all unexercised options expire on the sixth anniversary of the grant date. The fair value of each option was estimated on the date of the grant using the Cox-Ross-Rubinstein pricing formula, resulting in a value of $4.33 per share, or $513 in the aggregate. The assumptions used in the Cox-Ross-Rubinstein option pricing formula are as follows: volatility of 60.91% (representing the Company’s historical volatility), a risk-free interest rate of 0.41%, a dividend yield of 0.98%, and expected life of 4 years (determined using the simplified method as outlined in SAB Topic 14 due to lack of historical exercise data). For the three and nine months ended September 30, 2021 and 2020, the Company recognized amortization expense of the fair value of these options, which is included in General and administrative expenses, as follows:
Amortization of the unamortized stock-based compensation balance of $520 as of September 30, 2021 is expected to be expensed $153, $278, $81 and $8 during the remainder of 2021 and during the years ending December 31, 2022, 2023 and 2024, respectively. The following table summarizes the stock option activity for the nine months ended September 30, 2021:
The following table summarizes certain information about the options outstanding as of September 30, 2021:
As of September 30, 2021 and December 31, 2020, a total of 916,287 and 837,338 stock options were outstanding, respectively. Restricted Stock Units The Company has issued restricted stock units (“RSUs”) under the 2015 Plan to certain members of the Board of Directors and certain executives and employees of the Company, which represent the right to receive a share of common stock, or in the sole discretion of the Company’s Compensation Committee, the value of a share of common stock on the date that the RSU vests. As of September 30, 2021 and December 31, 2020, 478,848 and 373,588 shares of the Company’s common stock were outstanding in respect of the RSUs, respectively. Such shares of common stock will only be issued in respect of vested RSUs issued to directors when the director’s service with the Company as a director terminates. Such shares of common stock will only be issued to executives and employees when their RSUs vest under the terms of their grant agreements and the amended 2015 Plan. The RSUs that have been issued to certain members of the Board of Directors generally vest on the date of the annual shareholders meeting of the Company following the date of the grant. In lieu of cash dividends issued for vested and nonvested shares held by certain members of the Board of Directors, the Company will grant additional vested and nonvested RSUs, respectively, which are calculated by dividing the amount of the dividend by the closing price per share of the Company’s common stock on the dividend payment date and will have the same terms as other RSUs issued to members of the Board of Directors. The RSUs that have been issued to other individuals vest ratably on each of the anniversaries of the determined vesting date. The table below summarizes the Company’s unvested RSUs for the nine months ended September 30, 2021:
The total fair value of the RSUs that vested during the nine months ended September 30, 2021 and 2020 was $1,814 and $548, respectively. The total fair value is calculated as the number of shares vested during the period multiplied by the fair value on the vesting date. The following table summarizes certain information of the RSUs unvested and vested as of September 30, 2021:
The Company is amortizing these grants over the applicable vesting periods, net of anticipated forfeitures. As of September 30, 2021, unrecognized compensation cost of $1,504 related to RSUs will be recognized over a weighted-average period of 1.61 years. For the three and nine months ended September 30, 2021 and 2020, the Company recognized nonvested stock amortization expense for the RSUs, which is included in General and administrative expenses as follows:
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LEGAL PROCEEDINGS |
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Sep. 30, 2021 | |
| LEGAL PROCEEDINGS | |
| LEGAL PROCEEDINGS | 15 - LEGAL PROCEEDINGS From time to time, the Company may be subject to legal proceedings and claims in the ordinary course of its business, principally personal injury and property casualty claims. Such claims, even if lacking merit, could result in the expenditure of significant financial and managerial resources. The Company is not aware of any legal proceedings or claims that it believes will have, individually or in the aggregate, a material effect on the Company, its financial condition, results of operations or cash flows. |
SUBSEQUENT EVENTS |
9 Months Ended |
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Sep. 30, 2021 | |
| SUBSEQUENT EVENTS | |
| SUBSEQUENT EVENTS | 16 – SUBSEQUENT EVENTS On November 3, 2021, the Company announced a regular quarterly dividend of $0.15 per share to be paid on or about November 22, 2021 to shareholders of record as of November 15, 2021. The aggregate amount of the dividend is expected to be approximately $6.3 million, which the Company anticipates will be funded from cash on hand at the time the payment is to be made. On November 2, 2021, the Company completed the sale of the Genco Provence, a 2004-built Supramax vessel, to a third-party for $13,250 less a 2.5% commission payable to a third party. The vessel assets for the Genco Provence have been classified as held for sale in the Condensed Consolidated Balance Sheet as of September 30, 2021 at its net book value. This vessel served as collateral under the $450 Million Credit Facility, therefore $5,643 of the net proceeds received from the sale will remain classified as restricted cash for 360 days following the sale date. That amount can be used towards the financing of replacement vessels or vessels meeting certain requirements and added as collateral under the facility. If such a replacement vessel is not added as collateral within such 360 days period, the Company will be required to use the proceeds as a loan prepayment.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Principles of consolidation | Principles of consolidation The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which includes the accounts of GS&T and its direct and indirect wholly-owned subsidiaries and GSSM. All intercompany accounts and transactions have been eliminated in consolidation. |
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| Basis of presentation | Basis of presentation The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with U.S. GAAP for interim financial information and the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management of the Company, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and operating results have been included in the statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These Condensed Consolidated Financial Statements should be read in conjunction with the financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2020 (the “2020 10-K”). The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the operating results to be expected for the year ending December 31, 2021. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include vessel valuations, the valuation of amounts due from charterers, residual value of vessels, useful life of vessels, the fair value of time charters acquired, and the fair value of derivative instruments, if any. Actual results could differ from those estimates. |
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| Cash, cash equivalents and restricted cash | Cash, cash equivalents and restricted cash The Company considers highly liquid investments, such as money market funds and certificates of deposit with an original maturity of three months or less at the time of purchase to be cash equivalents. Current and non-current restricted cash includes cash that is restricted pursuant to our credit facilities. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same amounts shown in the Condensed Consolidated Statements of Cash Flows:
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| Vessels held for sale | Vessels held for sale
The Company’s Board of Directors has approved a strategy of divesting specifically identified older, less fuel-efficient vessels as part of a fleet renewal program to streamline and modernize the Company’s fleet. On July 16, 2021, the Company entered into an agreement to sell the Genco Provence. The relevant vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheet as of September 30, 2021. The sale of the Genco Provence was completed on November 2, 2021. Refer to Note 4 — Vessel Acquisitions and Dispositions for details of the agreement. On November 3, 2020, November 27, 2020 and November 30, 2020, the Company entered into agreements to sell the Baltic Panther, the Baltic Hare and the Baltic Cougar, respectively. The relevant vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheet as of December 31, 2020. The Baltic Panther, the Baltic Hare and the Baltic Cougar were sold on January 4, 2021, January 15, 2021 and February 24, 2021, respectively. |
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| Vessels held for exchange | Vessels held for exchange The remaining five vessel assets to be exchanged as part of an agreement entered into by the Company on December 17, 2020 have been classified as vessels held for exchange in the Condensed Consolidated Balance Sheet as of December 31, 2020 in the amount of $38,214, after recognition of impairment. This includes the vessel assets for the Baltic Cove, the Baltic Fox, the Genco Avra, the Genco Mare and the Genco Spirit. These vessels were exchanged during the first quarter of 2021. Refer to Note 4 — Vessel Acquisitions and Dispositions for details of the agreement. |
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| Voyage expense recognition | Voyage expense recognition In time charters, spot market-related time charters and pool agreements, operating costs including crews, maintenance and insurance are typically paid by the owner of the vessel and specified voyage costs such as fuel and port charges are paid by the charterer. These expenses are borne by the Company during spot market voyage charters. As such, there are significantly higher voyage expenses for spot market voyage charters as compared to time charters, spot market-related time charters and pool agreements. Refer to Note 11 — Voyage Revenues for further discussion of the accounting for fuel expenses for spot market voyage charters. There are certain other non-specified voyage expenses, such as commissions, which are typically borne by the Company. At the inception of a time charter, the Company records the difference between the cost of bunker fuel delivered by the terminating charterer and the bunker fuel sold to the new charterer as a gain or loss within voyage expenses. Additionally, the Company records lower of cost and net realizable value adjustments to re-value the bunker fuel on a quarterly basis for certain time charter agreements where the inventory is subject to gains and losses. These differences in bunkers, including any lower of cost and net realizable value adjustments, resulted in a net (gain) loss of ($176) and ($392) during the three months ended September 30, 2021 and 2020, respectively, and ($1,113) and $1,407 during the nine months ended September 30, 2021 and 2020, respectively. Additionally, voyage expenses include the cost of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement. |
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| Technical management fees | Technical management fees Technical management fees represent fees paid to third party technical management companies for the day-to-day management of our vessels, including performing routine maintenance, attending to vessel operation and arranging for crews and supplies. In addition, technical management fees also include the direct costs incurred by GSSM for the technical management of the vessels under its management. |
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| Impairment of vessel assets | Impairment of vessel assets During the three and nine months ended September 30, 2021, the Company did not incur any impairment of vessel assets in accordance with Accounting Standards Codification (“ASC”) 360 — “Property, Plant and Equipment” (“ASC 360”). During the three and nine months ended September 30, 2020, the Company recorded $21,896 and $134,710, respectively, related to the impairment of vessel assets in accordance with ASC 360. On November 3, 2020, the Company entered into an agreement to sell the Baltic Panther, a 2009-built Supramax vessel, to a third party for $7,510 less a 3.0% commission payable to a third party. As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of September 30, 2020, the vessel value for the Baltic Panther was adjusted to its net sales price of $7,285 as of September 30, 2020. This resulted in an impairment loss of $3,711 during the three and nine months ended September 30, 2020. On October 16, 2020, the Company entered into an agreement to sell the Genco Loire, a 2009-built Supramax vessel, to a third party for $7,650 less a 2.0% commission payable to a third party. As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessel as of September 30, 2020, the vessel value for the Genco Loire was adjusted to its net sales price of $7,497 as of September 30, 2020. This resulted in an impairment loss of $3,407 during the three and nine months ended September 30, 2020. On September 30, 2020, the Company determined that the expected estimated future undiscounted cash flows for three of its Supramax vessels, the Genco Lorraine, the Baltic Cougar and the Baltic Leopard, did not exceed the net book value of these vessels as of September 30, 2020. The Company adjusted the carrying value of these vessels to their respective fair market values as of September 30, 2020. This resulted in an impairment loss of $7,963 during the three and nine months ended September 30, 2020. On September 25, 2020, the Company entered into an agreement to sell the Baltic Jaguar, a 2009-built Supramax vessel, to a third party for $7,300 less a 3.0% commission payable to a third party. Therefore, the vessel value for the Baltic Jaguar was adjusted to its net sales price of $7,081 as of September 30, 2020. This resulted in an impairment loss of $4,138 during the three and nine months ended September 30, 2020. On September 17, 2020, the Company entered in an agreement to sell the Genco Normandy, a 2007-built Supramax vessel, to a third party for $5,850 less a 2.0% commission payable to a third party. Therefore, the vessel value for the Genco Normandy was adjusted to its net sales price of $5,733 as of September 30, 2020. This resulted in an impairment loss of $2,677 during the three and nine months ended September 30, 2020. At March 31, 2020, the Company determined that the expected estimated future undiscounted cash flows for four of its Supramax vessels, the Genco Picardy, the Genco Predator, the Genco Provence and the Genco Warrior, did not exceed the net book value of these vessels as of March 31, 2020. The Company adjusted the carrying value of these vessels to their respective fair market values as of March 31, 2020. This resulted in an impairment loss of $27,046 during the nine months ended September 30, 2020. On February 24, 2020, the Board of Directors determined to dispose of the Company’s following ten Handysize vessels: the Baltic Hare, the Baltic Fox, the Baltic Wind, the Baltic Cove, the Baltic Breeze, the Genco Ocean, the Genco Bay, the Genco Avra, the Genco Mare and the Genco Spirit, at times and on terms to be determined in the future. Given this decision, and that the revised estimated future undiscounted cash flows for each of these older vessels did not exceed the net book value for each vessel given the estimated probabilities of whether the vessels will be sold, the Company adjusted the values of these older vessels to their respective fair market values during the three months ended March 31, 2020. Subsequent to February 24, 2020, the Company entered into agreements to sell three of these vessels during the three months ended March 31, 2020, namely the Baltic Wind, the Baltic Breeze and the Genco Bay, which were adjusted to their net sales price. This resulted in an impairment loss of $85,768 during the nine months ended September 30, 2020. Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale of certain aforementioned vessels. |
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| Loss on sale of vessels | Loss on sale of vessels During the three months ended September 30, 2021, the Company recorded a net loss of $159 related primarily to the sale of the Genco Lorraine. The net loss of $894 recorded during the nine months ended September 30, 2021 related primarily to the sale of the Baltic Panther, Baltic Hare, Baltic Cougar, Baltic Leopard and Genco Lorraine, as well as net losses associated with the exchange of the Baltic Cove, Baltic Fox, Genco Spirit, Genco Avra and Genco Mare. During the three months ended September 30, 2020, the Company recorded a net loss of $358 related primarily to the sale of the Baltic Wind and Baltic Breeze. During the nine months ended September 30, 2020, the Company recorded a net loss of $844 related primarily to the sale of the Genco Charger, Genco Thunder, Baltic Wind and Baltic Breeze. Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale of these vessels. |
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| Loss on debt extinguishment | Loss on debt extinguishment During the three and nine months ended September 30, 2021, the Company recorded $4,408 related to the loss on the extinguishment of debt in accordance with ASC 470-50 — “Debt – Modifications and Extinguishments” (“ASC 470-50”). This loss was recognized as a result of the refinancing of the $495 Million Credit Facility and the $133 Million Credit Facility with the $450 Million Credit Facility on August 31, 2021 as described in Note 7 — Debt. |
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| Recent accounting pronouncements | Recent accounting pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”)” which provides temporary optional expedients and exceptions to the guidance in U.S. GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848) – Scope (“ASU 2021-01”),” which permits entities to apply optional expedients in Topic 848 to derivative instruments modified because of discounting transition resulting from reference rate reform. ASU 2020-04 became effective upon issuance and may be applied prospectively to contract modification made on or before December 31, 2022. ASU 2021-01 became effective upon issuance and may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or prospectively for contract modification made on or before December 31, 2022. The Company is currently evaluating the impact of the adoption of ASU 2020-04 and ASU 2021-01 on its Condensed Consolidated Financial Statements and related disclosures. |
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of restricted cash and cash equivalents |
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CASH FLOW INFORMATION (Tables) |
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| Schedule of cash flow information related to operating leases |
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NET EARNINGS (LOSS) PER SHARE (Tables) |
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NET EARNINGS (LOSS) PER SHARE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components of denominator for calculation of basic and diluted net earnings (loss) per share |
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DEBT (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DEBT | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of components of Long-term debt |
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| Schedule of effective interest rate and the range of interest rates on the debt |
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DERIVATIVE INSTRUMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTEREST RATE CAP AGREEMENTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of interest cap agreements |
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| Schedule of the effect of fair value and cash flow hedge accounting on the statement of operations |
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| Schedule of interest rate cap assets |
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| Components of AOCI included in the accompanying condensed consolidated balance sheet |
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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of fair values and carrying values of the Company's financial instruments |
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ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ACCOUNTS PAYABLE AND ACCRUED EXPENSES. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of accounts payable and accrued expenses |
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VOYAGE REVENUE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| VOYAGE REVENUE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of voyage revenue |
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STOCK-BASED COMPENSATION (Tables) - 2015 EIP Plan |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Options | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Awards | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of nonvested stock amortization expense |
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| Schedule of stock option activity |
The following table summarizes certain information about the options outstanding as of September 30, 2021:
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| Restricted Stock Units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Awards | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of nonvested stock amortization expense |
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| Summary of nonvested restricted stock units |
The total fair value of the RSUs that vested during the nine months ended September 30, 2021 and 2020 was $1,814 and $548, respectively. The total fair value is calculated as the number of shares vested during the period multiplied by the fair value on the vesting date. The following table summarizes certain information of the RSUs unvested and vested as of September 30, 2021:
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GENERAL INFORMATION (Details) $ in Thousands |
9 Months Ended |
|---|---|
|
Sep. 30, 2021
USD ($)
item
t
segment
| |
| Segment reporting | |
| Number of reportable segments | segment | 1 |
| Drybulk Vessels | |
| Segment reporting | |
| Number of vessels in fleet | 43 |
| Capacity of vessels | t | 4,568,600 |
| Average age of vessels | 10 years 2 months 12 days |
| Capesize Drybulk Carriers | |
| Segment reporting | |
| Number of vessels in fleet | 17 |
| Ultramax Vessels | |
| Segment reporting | |
| Number of vessels in fleet | 13 |
| Supramax Vessels | |
| Segment reporting | |
| Number of vessels in fleet | 13 |
| GSSM | Variable Interest Entity | |
| Segment reporting | |
| Ownership percentage | 50.00% |
| Payments to acquire ownership interest | $ | $ 50 |
| GSSM | Synergy | |
| Segment reporting | |
| Ownership by synergy | 50.00% |
| Payments to acquire ownership interest | $ | $ 50 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restricted Cash (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|---|---|
| Restricted Cash | ||||
| Cash and cash equivalents | $ 80,172 | $ 143,872 | ||
| Restricted cash - current | 35,492 | |||
| Restricted cash - noncurrent | 315 | 315 | ||
| Cash, cash equivalents and restricted cash | $ 80,487 | $ 179,679 | $ 160,775 | $ 162,249 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Vessels held for exchange (Details) $ in Thousands |
Dec. 31, 2020
USD ($)
item
|
|---|---|
| Vessels, net | |
| Number of vessels held for exchange | item | 5 |
| Vessels held for exchange | $ | $ 38,214 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Voyage expense recognition (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| Voyage expense recognition | ||||
| Net (gain) loss on purchase and sale of bunker fuel and net realizable value adjustments | $ (176) | $ (392) | $ (1,113) | $ 1,407 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Sale of Vessels (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| Gain on sale of vessels | ||||
| Loss on disposal of vessels | $ 159 | $ 358 | $ 894 | $ 844 |
| Baltic Wind and Baltic Breeze | ||||
| Gain on sale of vessels | ||||
| Loss on disposal of vessels | $ 358 | |||
| Genco Lorraine | ||||
| Gain on sale of vessels | ||||
| Loss on disposal of vessels | $ 159 | |||
| Baltic Panther, Baltic Hare, Baltic Cougar, Baltic Leopard And Genco Lorraine | ||||
| Gain on sale of vessels | ||||
| Loss on disposal of vessels | $ 894 | |||
| Genco Charger, Genco Thunder, Baltic Wind and Baltic Breeze | ||||
| Gain on sale of vessels | ||||
| Loss on disposal of vessels | $ 844 | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loss on Debt Extinguishment (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2021 |
|
| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
| Loss on debt extinguishment | $ 4,408 | $ 4,408 |
CASH FLOW INFORMATION - Non-cash (Details) - USD ($) $ in Thousands |
9 Months Ended | |
|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| Non-cash investing and financing activities | ||
| Cash paid for interest | $ 9,888 | $ 14,577 |
| Cash paid for estimated income taxes | 0 | 0 |
| Reclassification from vessels, net of accumulated depreciation and Deferred drydocking net of accumulated amortization to Vessels held for sale | 6,964 | |
| Reclassification from vessels to vessels held for sale | 20,889 | |
| Accounts payable and accrued expenses | ||
| Non-cash investing and financing activities | ||
| Purchases of vessels and ballast water treatment systems | 512 | 1,241 |
| Purchase of scrubbers | 6 | 25 |
| Purchase of other fixed assets | 199 | 451 |
| Net proceeds from sale of vessels | 123 | |
| Non-cash financing activities cash dividends payable | 114 | $ 108 |
| Non-cash financing activities for financing costs | $ 620 | |
CASH FLOW INFORMATION - Stock-Based Compensation (Details) - 2015 EIP Plan - USD ($) $ / shares in Units, $ in Thousands |
9 Months Ended | |||||
|---|---|---|---|---|---|---|
May 13, 2021 |
May 04, 2021 |
Feb. 23, 2021 |
Jul. 15, 2020 |
Feb. 25, 2020 |
Sep. 30, 2021 |
|
| Restricted Stock Units | ||||||
| Non-cash investing and financing activities | ||||||
| Granted (in shares) | 33,525 | 18,428 | 103,599 | 42,642 | 173,749 | 157,442 |
| Aggregate fair value | $ 515 | $ 300 | $ 1,027 | $ 255 | $ 1,227 | |
| Stock Options | ||||||
| Non-cash investing and financing activities | ||||||
| Options to purchase (in shares) | 118,552 | 344,568 | 118,552 | |||
| Exercise price | $ 9.91 | $ 7.06 | $ 9.91 | |||
| Aggregate fair value | $ 513 | $ 693 |
CASH FLOW INFORMATION - Lease payments (Details) - USD ($) $ in Thousands |
9 Months Ended | |
|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| Cash paid for amounts included in the measurement of lease liabilities: | ||
| Operating cash flow payments | $ 1,672 | $ 1,672 |
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| RELATED PARTY TRANSACTIONS | ||||
| Related party transactions | $ 0 | $ 0 | $ 0 | $ 0 |
DEBT - Components of Long-term Debt (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Line of Credit Facility | ||
| Principal amount | $ 305,000 | $ 449,228 |
| Less: Unamortized debt financing costs | (8,229) | (9,653) |
| Less: Current portion | (80,642) | |
| Long-term debt, net | 296,771 | 358,933 |
| Secured Debt | $450 Million Credit Facility | ||
| Line of Credit Facility | ||
| Principal amount | 305,000 | |
| Less: Unamortized debt financing costs | $ (8,229) | |
| Secured Debt | $495 Million Credit Facility | ||
| Line of Credit Facility | ||
| Principal amount | 334,288 | |
| Less: Unamortized debt financing costs | (8,222) | |
| Secured Debt | $133 Million Credit Facility | ||
| Line of Credit Facility | ||
| Principal amount | 114,940 | |
| Less: Unamortized debt financing costs | $ (1,431) |
DEBT - Unamortized debt Issuance costs (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| DEBT | ||
| Unamortized debt Issuance costs | $ 8,229 | $ 9,653 |
DEBT - Interest Rates (Details) |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| Interest rates on debt | ||||
| Effective Interest Rate (as a percent) | 3.47% | 3.23% | 3.28% | 3.89% |
| Minimum | ||||
| Interest rates on debt | ||||
| Range of interest rates (excluding unused commitment fees) | 2.54% | 2.65% | 2.54% | 2.65% |
| Maximum | ||||
| Interest rates on debt | ||||
| Range of interest rates (excluding unused commitment fees) | 3.38% | 3.56% | 3.38% | 5.05% |
DERIVATIVE INSTRUMENTS - Fair Value and Cash Flow Hedge (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| INTEREST RATE CAP AGREEMENTS | ||||
| Total consolidated interest expense | $ 3,943 | $ 5,097 | $ 12,955 | $ 17,515 |
| Gain or (loss) on cash flow hedging relationships in Subtopic 815-20: | ||||
| Interest contracts: Premium excluded and recognized on an amortized basis | $ 43 | $ 153 | ||
DERIVATIVE INSTRUMENTS - Interest Rate Cap Assets (Details) $ in Thousands |
Sep. 30, 2021
USD ($)
|
|---|---|
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
| Fair value of derivative instruments - noncurrent | $ 424 |
| Interest Rate Cap | Derivatives designated as hedging instruments | |
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
| Fair value of derivative instruments - noncurrent | $ 424 |
DERIVATIVE INSTRUMENTS - AOCI (Details) $ in Thousands |
9 Months Ended |
|---|---|
|
Sep. 30, 2021
USD ($)
| |
| INTEREST RATE CAP AGREEMENTS | |
| Amount recognized in OCI on derivative, intrinsic | $ (59) |
| Amount recognized in OCI on derivative, excluded | 99 |
| Balance at the end of the period | $ 40 |
FAIR VALUE OF FINANCIAL INSTRUMENTS - RECURRING (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Fair value of financial instruments | ||
| Principal amount of floating rate debt | $ 305,000 | $ 449,228 |
| Carrying Value | ||
| Fair value of financial instruments | ||
| Cash and cash equivalents | 80,172 | 143,872 |
| Restricted cash | 315 | 35,807 |
| Principal amount of floating rate debt | 305,000 | 449,228 |
| Fair value | ||
| Fair value of financial instruments | ||
| Cash and cash equivalents | 80,172 | 143,872 |
| Restricted cash | 315 | 35,807 |
| Principal amount of floating rate debt | $ 305,000 | $ 449,228 |
FAIR VALUE OF FINANCIAL INSTRUMENTS - NONRECURRING (Details) - Fair Value, Measurements, Nonrecurring $ in Thousands |
3 Months Ended | 9 Months Ended | |||
|---|---|---|---|---|---|
|
Sep. 30, 2021
USD ($)
item
|
Sep. 30, 2020
USD ($)
item
|
Sep. 30, 2021
USD ($)
item
|
Sep. 30, 2020
USD ($)
item
|
Dec. 31, 2020
USD ($)
|
|
| Fair value of financial instruments | |||||
| Number of vessels written down as part of impairment | item | 0 | 7 | 0 | 21 | |
| Impairment of operating lease right of use asset | $ 0 | $ 0 | $ 0 | $ 0 | |
| Level 3 | |||||
| Fair value of financial instruments | |||||
| Financial assets | 0 | 0 | $ 0 | ||
| Financial liabilities | $ 0 | $ 0 | $ 0 | ||
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| ACCOUNTS PAYABLE AND ACCRUED EXPENSES. | ||
| Accounts payable | $ 11,862 | $ 11,864 |
| Accrued general and administrative expenses | 4,232 | 3,258 |
| Accrued vessel operating expenses | 8,044 | 7,671 |
| Total accounts payable and accrued expenses | $ 24,138 | $ 22,793 |
VOYAGE REVENUES (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| Income statement | ||||
| Lease, Practical Expedient, Lessor Single Lease Component | true | true | ||
| Lease revenue | $ 46,327 | $ 20,795 | $ 96,783 | $ 51,929 |
| Voyage Revenue | 108,925 | 66,729 | 267,068 | 208,137 |
| Total voyage revenues | 155,252 | 87,524 | 363,851 | 260,066 |
| Voyage | ||||
| Income statement | ||||
| Total voyage revenues | $ 155,252 | $ 87,524 | $ 363,851 | $ 260,066 |
LEASES - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| LEASES | ||||
| Sublease income | $ 306 | $ 306 | $ 918 | $ 918 |
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands |
6 Months Ended | ||
|---|---|---|---|
|
Dec. 31, 2018
USD ($)
item
|
Sep. 30, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
| Purchase commitment | |||
| Vessel assets | $ 991,471 | $ 919,114 | |
| Remainder of 2021 purchase obligation | 345 | ||
| 2022 purchase obligation | 3,909 | ||
| Purchase Agreements for BWTS | |||
| Purchase commitment | |||
| Number of vessels to receive ballast water treatments systems | item | 36 | ||
| Vessel assets | $ 18,724 | $ 17,009 | |
| Purchase Agreement of BWTS for Capesize Vessels | |||
| Purchase commitment | |||
| BWTS purchase price | $ 900 | ||
| Purchase Agreement of BWTS for Supramax Vessels | |||
| Purchase commitment | |||
| BWTS purchase price | $ 600 |