<PAGE>
Being Filed Pursuant to Rule 901 (d) of Regulation S-T
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934.
For the quarterly period ended March 31, 1996
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES AND EXCHANGE ACT OF 1934.
For the period from to
Commission File Number
2-87930
OMI CORP.
(Exact name of registrant as specified in its charter)
Delaware 13-2625280
(State or other jurisdiction (I.R.S. Employer
incorporation or organization) Identification No.)
90 Park Avenue, New York, N.Y. 10016
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code (212) 986-1960
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities and Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of May 10, 1996:
Common Stock, par value 0.50 per share 31,074,570 shares
<PAGE>
OMI CORP. AND SUBSIDIARIES
INDEX
PART I: FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Statements of
Operations for the three months
ended March 31, 1996 and 1995 3
Condensed Consolidated Balance Sheets-
March 31, 1996 and December 31, 1995 4
Consolidated Statements of Changes in
Stockholders' Equity for the three months
ended March 31, 1996 5
Consolidated Statements of Cash Flows for the three
months ended March 31, 1996 and 1995 6
Notes to Condensed Consolidated Financial
Statements 7-8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 9
PART II: OTHER INFORMATION 14
SIGNATURES 15
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<PAGE>
OMI CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS
ENDED MARCH 31,
1996 1995
--------- -------
<S> <C> <C>
Revenues:
Voyage revenues $ 60,287 $ 55,463
Other income 1,551 1,527
-------- --------
Total revenues 61,838 56,990
-------- --------
Operating Expenses:
Vessel and voyage 43,848 49,705
Depreciation and amortization 8,066 8,693
Operating lease 755 1,603
General and administrative 3,744 3,871
-------- --------
Total operating expenses 56,413 63,872
-------- --------
Operating income (loss) 5,425 (6,882)
-------- --------
Other Income (Expense):
(Loss)gain on disposal of
assets-net (144) 7,363
Interest expense-net (6,485) (6,490)
Minority interest in (income)
loss of subsidiary (50) 141
Other-net 556 425
-------- --------
Net other income (expense) (6,123) 1,439
-------- --------
Loss before income taxes and equity
in operations of joint ventures (698) (5,443)
Benefit for income taxes (412) (1,798)
-------- --------
Loss before equity in operations
of joint ventures (286) (3,645)
Equity in operations of joint
ventures-net 891 2,519
-------- --------
Net income (loss) $ 605 $ (1,126)
======== ========
Net income (loss) per common share $ 0.02 $ (0.04)
======== ========
Weighted average number of shares
of common stock outstanding 31,199 30,488
======== ========
</TABLE>
See notes to condensed consolidated financial statements.
-3-
<PAGE>
OMI CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
MARCH 31, 1996 DEC. 31, 1995
--------------- -------------
<S> <C> <C>
ASSETS (UNAUDITED)
Current assets:
Cash, including cash equivalents: 1996-
$7,900, 1995-$26,008 $ 10,852 $ 32,569
Advances to masters 3,764 2,033
Receivables:
Traffic 13,708 12,016
Other 10,245 9,333
Income tax refund receivable 5,651 5,651
Prepaid expenses and other current assets 3,600 5,937
Vessel held for sale 11,424 14,668
--------- --------
Total current assets 59,244 82,207
-------- --------
Capital construction and other restricted funds 9,717 9,765
Vessels and other property, at cost 632,052 646,135
Less accumulated depreciation (270,599) (277,694)
--------- ----------
Vessels and other property-net 361,453 368,441
--------- ---------
Investments in, and advances to joint ventures 85,087 84,915
Cash held in escrow 14,820
Other assets and deferred charges 21,172 20,158
---------- ---------
Total $ 551,493 $ 565,486
========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable to banks $ 20,000
Accounts payable 5,853 $ 5,187
Accrued liabilities:
Voyage and vessel 25,460 24,548
Interest 6,654 4,375
Lease termination costs 22,000
Other 2,117 4,169
Current portion of long-term debt 21,903 24,582
---------- ---------
Total current liabilities 81,987 84,861
---------- ---------
Long-term debt 250,289 259,284
Deferred income taxes payable ` 62,627 63,082
Advance time charter revenues and other liabilities 7,966 10,470
Minority interest in subsidiary 2,644 2,594
Stockholders' equity 145,980 145,195
---------- ---------
Total $ 551,493 $ 565,486
========== =========
</TABLE>
See notes to condensed consolidated financial statements.
-4-
<PAGE>
OMI CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 1996
(UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Unrealized
Unearned Gain (loss)
Cumulative Compensation on Total
Common Stock Capital Retained Translation Restricted Securities Treasury Stockholders'
Shares Amount Surplus Deficit Adjustment Stock -net Stock Equity
------ ------ ------- ------ ----------- ----------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Balance at January 1, 1996 31,042 $15,521 $131,622 $(5,265) $4,912 $(1,404) $29 $(220) $145,195
Net income 605 605
Exercise of stock options 26 13 135 148
Amortization of unearned
compensation 111 111
Net change in valuation
account (79) (79)
Balance at March 31, 1996 $31,068 $15,534 $131,757 $(4,660) $4,912 $(1,293) $(50) $(220) $145,980
======= ======== ======== ======= ====== ========== ===== ====== ========
</TABLE>
See notes to condensed financial statements.
-5-
<PAGE>
OMI CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED MARCH 31, 1996 1995
-------- --------
<S> <C> <C>
CASH FLOWS (USED) PROVIDED BY OPERATING ACTIVITIES:
Net income (loss) $ 605 $ (1,126)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Decrease in deferred income taxes payable (412) (1,798)
Depreciation and amortization 8,066 8,693
Amortization of unearned compensation 111 194
Loss (gain) on disposal of assets-net 150 (7,363)
Other - net (556) (425)
Equity in operations of joint ventures
over dividends received (482) (2,519)
Changes in assets and liabilities:
Increase in receivables and other
current assets (1,222) (384)
(Decrease)increase in accounts payable and
accrued expenses (16,383) 4,430
Advances from joint ventures - net 310 1,821
(Decease) increase in other assets and deferred charges (3,255) 1,150
Increase in advance time charter revenues
and other liabilities 496 901
Other assets and liabilities - net 77 436
-------- --------
Net cash (used) provided by operating activities (12,495) 4,010
-------- --------
CASH FLOWS PRO VIDED (USED) BY INVESTING ACTIVITIES:
Additions to vessels and other property (10,450) (2,194)
Proceeds from disposition of assets 14,531
Proceeds received from sale of marketable securities 12,360
Proceeds and interest received and reinvested in the
Capital construction and other restricted funds (101) (310)
Withdrawals from Capital construction and other
restricted funds 3,000
-------- --------
Net cash provided by investing activities 3,980 12,856
-------- --------
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES:
Net proceeds from issuance of common stock 137 8
Proceeds on notes payable to banks 20,000
Payments on long-term debt (33,339) (11,203)
-------- --------
Net cash used by financing activities (13,202) (11,195)
-------- --------
Net (decrease) increase in cash and cash equivalents (21,717) 5,671
Cash and cash equivalents at beginning of period 32,569 31,797
-------- --------
Cash and cash equivalents at end of period $ 10,852 $ 37,468
======== ========
</TABLE>
See notes to condensed consolidated financial statements.
-6-
<PAGE>
OMI CORP. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 1
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with the instructions to Form 10-Q and, therefore,
do not include all information and footnotes necessary for a fair presentation
of financial position, results of operations and cash flows in conformity with
generally accepted accounting principles. However, in the opinion of the
management of OMI Corp. and subsidiaries ("OMI" or the "Company"), all
adjustments (comprising only normal recurring accruals) necessary for a fair
presentation of operating results have been included in the statements.
Note 2 - Income Taxes
The benefit for income taxes for the three months ended March 31, 1996
varies from statutory rates as follows:
<TABLE>
<CAPTION>
(in thousands)
<S> <C>
Tax benefit calculated at statutory
rates $ 68
Equity in operations of joint ventures of $1,371,000
(net of dividends declared) not tax effected as
management considers it to be invested for an
indefinite period (480)
Total $(412)
===
</TABLE>
The Company has not provided deferred income taxes on its equity in the
undistributed earnings of foreign corporate joint ventures accounted for under
the equity method other than Amazon Transport, Inc. ("Amazon") and White Sea
Holdings Ltd. These earnings are considered by management to be invested in the
business for an indefinite period.
Note 3 - Supplemental Cash Flow Information
Cash payments include interest of approximately $4,500,000 and $4,026,000
for the three months ended March 31, 1996 and 1995, respectively. There were no
income taxes paid during the three months ended March 31, 1996 or March 31,
1995.
In March 1996, the Company delivered a vessel with a book value of
$16,537,000 to new owners as part of a swap transaction. Cash in the amount of
$14,820,000 was received and is being held in an escrow account pending the
delivery of another vessel to the Company which will complete the exchange
transaction.
In connection with the purchase of the OMI Hudson in March 1996, the
Company assumed $19,570,000 in debt, secured by the vessel and payable in
semiannual installments of $1,145,000 plus interest ranging from 5.86 percent to
8.85 percent until 2006.
-7-
<PAGE>
Note 4 - Joint Venture Information
Amazon and Wilomi, Inc. ("Wilomi") are both 49 percent owned by OMI and are
accounted for using the equity method.
Summarized income statement information for the three months ended March
31, 1996 and 1995 for Amazon and Wilomi are as follows:
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
Amazon Wilomi
(In thousands) 1996 1995 1996 1995
------- ------ ------ ------
<S> <C> <C> <C> <C>
Revenues $ 2,078 $2,674 $5,312 $5,335
Expenses 3,715 2,608 3,703 3,131
------- ------ ------ ------
Operating (loss)income (1,637) 66 1,609 2,204
------- ------ ------ ------
Net (loss) income $(1,587) $ 91 $1,193 $ 964
======= ====== ====== ======
</TABLE>
Note 5 - Credit Lines/Loan Agreements
OMI has a revolving credit/term loan agreement providing for a credit
facility of up to $37,000,000 through May 1999, at which time the outstanding
balance converts to a three year amortizing term loan. The Company also has two
$10,000,000 line of credit facilities at variable rates above LIBOR, which
expire in February 1997 and December 1997, respectively. At March 31, 1996,
$5,000,000 was available under these commercial bank facilities.
Note 6 - Guaranteed Debt
OMI acts as a guarantor for a portion of the debt incurred by joint
ventures with affiliates of two of its joint venture partners. Such debt was
approximately $86,555,000 at March 31, 1996, with OMI's share of such guarantees
being approximately $42,580,000. OMI also is a guarantor for one of its joint
venture's revolving lines of credit of $4,000,000, with a guarantee to OMI from
its joint venture partner of $2,000,000.
The Company and its joint venture partners have committed to fund any
working capital deficiencies which may be incurred by their joint venture
investments. At March 31, 1996, no such deficiencies have occurred which have
required funding.
Note 7 - Newly Issued Accounting Standard
In October 1995, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards (SFAS) No. 123, "Accounting for Stock-Based
Compensation," which was adopted by the Company effective January 1, 1996. SFAS
No. 123 requires expanded disclosures of stock-based compensation arrangements
with employees and encourages (but does not require) compensation cost to be
measured based on the fair value of the equity instrument awarded. Companies are
permitted, however, to continue to apply APB Opinion No. 25 which recognizes
compensation cost based on the intrisic value of the equity instrument awarded.
The Company will continue to apply APB Opinion No. 25 to its stock based
compensation awards to employees and will disclose the required pro forma effect
on net income and earnings per share.
-8-
<PAGE>
Item.2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Results of Operations for the Three Months Ended March 31, 1996 versus March 31,
1995
OMI Corp. ("OMI" or the "Company") is a diversified major bulk shipping
company operating in both the U.S. flag and international markets. OMI's
operating fleet currently totals 39 vessels including nine joint venture vessels
and four chartered-in vessels. The fleet comprises three chemical/product
carriers, 16 product carriers, four dry bulk carriers, 15 crude oil tankers and
one liquid petroleum gas carrier. A Suezmax tanker is currently under
construction and scheduled for delivery in 1996 to a 49 percent owned joint
venture. The Company also is involved in other marine related activities,
including lightering of crude carriers and workboat supply services in the Gulf
of Mexico and ship management for the U.S. Ready Reserve Fleet.
OVERVIEW
Results in the past few years have suffered as a result of the decline in
revenues earned by the U.S. flag fleet as well as from additional vessel
maintenance expenses and upgrades required to maintain the fleet. The Company
believes that the opportunities for future acquisitions are better in the
international market. Consequently, over the past two years, management has sold
or contracted for the sale of certain assets, primarily U. S. flag vessels.
During the first quarter of 1996, OMI delivered two U.S. flag dry bulk carriers
to new owners and currently has an agreement to sell three U.S. flag
chemical/product carriers to Hvide Marine Inc. ("Hvide") upon the successful
completion of Hvide's public offering of common stock. The market for the
Company's remaining U.S. dry bulk carrier, the Platte, has declined
significantly in the past two years as a result of cuts in government programs
to subsidize export of grain. The Company is seeking permission to reflag this
vessel under foreign registry so that it may compete more effectively in the
foreign market.
In line with OMI's marketing strategy, in the third and fourth quarters of
1995, Company disposed of three older foreign flag vessels, one combination
carrier, a crude oil carrier and a product carrier, and acquired three newer
small product carriers. In March 1996, OMI contracted to sell a 1978 built crude
oil carrier.
The OMI Columbia, OMI's largest domestic vessel, lacked regular employment
until the latter part of 1995 at which time it began operating on a time charter
which has not terminated. In connection with the enactment of legislation to
eliminate restrictions on the export of Alaskan North Slope crude oil and
determination by the Administration that the export of such oil is in the
national interest, OMI has obtained a favorable charter, subject only to
issuance of final regulations by the U.S. Government, with a major oil company
for the OMI Columbia. Other marine related activities improved in 1996, such as
operating results of OMI's 83 percent owned subsidiary OMI Petrolink Corporation
("Petrolink") which is a Houston-based subsidiary in the business of lightering
large crude oil carriers and operating an offshore supply boat business. In
1995, increased competition in the lightering business caused a decrease in
volume and rates which resulted in operating losses. In 1996, however, with new
and fewer contracts for chartered-in vessels which lowered expenses in the
lightering business, coupled with full utilization of supply boats, Petrolink is
recovering with operating profits in the first quarter.
-9-
<PAGE>
RESULTS OF OPERATIONS
Results of operations of OMI include operating activities of the Company's
domestic and foreign vessels. The discussion that follows explains the Company's
operating results in terms of net voyage revenue, which is voyage revenue less
vessel and voyage expenses, because fluctuations in voyage revenues and expenses
occur based on the nature of a charter. The Company's vessels currently operate,
or have operated in prior years, on time, bareboat or voyage ("spot") charters.
Each type of charter denotes a method by which revenue are recorded and expenses
are allocated. Under a time charter, revenue is measured based on a daily or
monthly rate and the charterer assumes certain operating expenses, such as fuel
and port charges. Under bareboat charters, the charterer assumes all operating
expenses. The revenue rate is likely to be lower than a time charter since the
costs are assumed by the charterer. Under a voyage charter, revenue is
calculated based on the amount of cargo carried, most expenses are for the ship
owner's account and the length of the charter is one voyage. Revenue may be
higher in the spot market as the owner is responsible for most of the costs of
the voyage. Other factors affecting net voyage revenue for voyage charters are
waiting time between cargoes, port costs and fuel price and consumption.
Vessel expenses included in net voyage revenue include operating expenses
such as crew payroll/benefits/travel, stores expense, maintenance and repair
expense, drydock expense, insurance expense and miscellaneous vessel expenses.
These expenses are a function of the fleet size, utilization levels for certain
expenses, age of the vessel and requirements under laws, charters and Company
policy. Insurance expense varies from year to year with the overall insurance
market conditions and industry, as well as the insured's loss record. Since
fluctuations occur in voyage revenue and expenses due to the nature of the
charter, the following discussion addresses variations in net voyage revenue.
VOYAGE REVENUE LESS VESSEL AND VOYAGE EXPENSES
Net voyage revenues of $16,439,000 for the three months ended March
31,1996, increased $10,681,000 or 86 percent, as compared to $5,758,000 for the
three months ended March 31, 1995. The net increases in 1996 domestic operations
primarily resulted from the following: (i) the OMI Columbia operated on a time
charter at higher rates with no offhire days compared to 67 idle days due to
lack of business in the first quarter of 1995, (ii) two vessels, the Patriot and
the Courier, are currently operating on time charters with the Military Sealift
Command: in the first quarter of 1995 these vessels were offhire an aggregate of
99 days while in drydock in preparation for these long-term charters, (iii)
vessel expenses decreased due to the reversal of the drydock accrual for a
vessel which was delivered to new owners in March 1996 and (iv) results of
operations of Petrolink improved in 1996.
Net increases in 1996 foreign operations resulted primarily from improved
international market conditions in both the crude oil and product carrier
markets. This improvement in market conditions increased the demand as well as
the rates for such carriers in the first quarter of 1996 in comparison to the
first quarter of 1995. Factors contributing to improvements in the market were
weather delays at the end of the fourth quarter of 1995 in the Atlantic basin, a
colder winter in the northern hemisphere and general improvements in economic
conditions. Increases in revenue were offset, however, by increases in fuel
expense over the first quarter of 1995.
Other increases in foreign net voyage revenue were from revenue generated
from a product carrier acquired in November 1995, increased revenue in 1996 from
a
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<PAGE>
crude oil carrier which was out of service for 44 days in 1995 while in drydock
and increases in revenue earned by the two product carriers acquired in
September 1995.
In the first quarter of 1996 net vessel expenses decreased primarily due to
a decrease in the number of and the cost of drydocks as compared to the first
quarter of 1995.
OTHER INCOME
Other income consists primarily of management fees and dividend income on
investments. During the three months ended March 31, 1996, other income
increased slightly as compared to 1995. The increase in 1996 was primarily from
fees received from the management of vessels for the U.S. government due to more
vessels activated in comparison to idle status in the first quarter 1995.
Increases were offset in part by a decrease in management fees received from a
joint venture.
OTHER OPERATING EXPENSES
The Company's operating expenses, other than vessel and voyage expenses,
consist of depreciation and amortization, operating lease expense and general
and administrative expenses. For the three months ended March 31, 1996, these
expenses decreased an aggregate of $1,602,000 or 11 percent. The primary reason
for the decrease was a reduction of operating lease expense of $848,000 or 53
percent after the purchase of the OMI Hudson from its lessor in February 1996.
Depreciation expense decreased $627,000, resulting principally from the disposal
of two dry bulk carriers in 1996 and the writedown of the basis of two vessels
in 1995. Decreases in general and administrative expenses of $127,000 or 3
percent include a decline in employee salaries and benefits of approximately
$568,000 which was due primarily to the charge in the first quarter of 1995 for
employees electing to terminate their employment under a voluntary severance
program. Such decreases were offset in part by increases in professional fees
for legal and other professional services.
OTHER INCOME (EXPENSE)
Other income (expense) consists of (loss) gain on disposal of assets-net,
interest expense-net, minority interest in (income) loss of subsidiary and
other-net. The net decrease of $7,562,000 in net other expense for the three
months ended March 31, 1996, compared to the same period in 1995 was primarily
due to the decrease in gain on disposal of assets resulting from the sale of
2,503,389 shares of Noble Drilling Corporation stock for a gain of $7,806,000 in
the first quarter of 1995.
BENEFIT FOR INCOME TAXES
The benefit for income taxes of $412,000 for the three months ended March
31, 1996 varied from statutory rates primarily because deferred taxes are not
recorded for equity in operations of joint ventures other than for Amazon
Transport, Inc. and White Sea Holdings Ltd., as management considers such
earnings to be invested for an indefinite period. Equity in Operations of Joint
ventures Equity in operations of joint ventures of $891,000 decreased $1,628,000
in the three months ended March 31, 1996, from $2,519,000 in same period in
1995. The
-11-
<PAGE>
net decreases were primarily attributable to two joint ventures. One 49.9
percent joint venture sold a vessel in the first half of 1995; OMI's portion of
the gain was $990,000. The vessel in the other joint venture was offhire in the
first quarter of 1996 while preparing for and while in drydock.
LIQUIDITY AND CAPITAL RESOURCES
Cash and cash equivalents of $10,852,000 decreased $21,717,000 or 67
percent at March 31, 1996 from the balance of $32,569,000 at December 31, 1995.
The Company's working capital of $(22,743,000) at March 31, 1996, decreased
$20,089,000 from ($2,654,000) at December 31, 1995. The primary reason for the
decline in working capital was due to the purchase of the OMI Hudson, the
repurchase of $14,050,000 of Senior Notes and payment of outstanding debt of
$7,500,000 for a vessel delivered in an exchange transaction for which the
related cash received of $14,820,000 is being held in escrow until the vessel to
be received in the exchange transaction is delivered.
For the three months ended March 31, 1996, net cash used by operating
activities was $12,495,000 which was a decrease of $16,505,000 from net cash
provided by operating activities of $4,010,000 for the three months ended March
31, 1995. The primary cause of the decline was the payment of the $22,000,000
lease termination fee for the OMI Hudson which was accrued at December 31, 1995.
For the three months ended March 31, 1996, sources of liquidity, other than
from operating activities were primarily proceeds of $14,531,000 from the sale
of a vessel and proceeds of $20,000,000 received on the drawdown of two lines of
credit facilities. The primary uses of cash other than for operating activities
during the first quarter of 1996 were for payments of $33,339,000 of long-term
debt (which includes $13,144,000 for repurchases of Senior Notes and $15,000,000
in debt prepayments for vessels disposed of), and subsequent purchase of the OMI
Hudson for cash of $9,300,000 (for which OMI also assumed $19,570,000 in related
debt) and other capital expenditures for improvements on vessels of $1,150,000.
The Company had three credit agreements with banks aggregating $57,000,000
at March 31, 1996, of which $5,000,000 was unused. During April 1996, OMI drew
down an additional $3,000,000 on one of its lines of credit. OMI believes it is
in the position to meet its current and future obligations. The Company expects
to receive approximately $23,000,000 cash as part of the purchase price from the
pending sale of three vessels to Hvide. The Company is currently considering
other debt and equity opportunities including refinancing a portion of its
obligations to increase the Company's cash flow and reduce future interest
costs. The Company may also increase its liquidity by selling vessels that are
not in line with management's strategy to concentrate in crude tankers and
product carriers.
COMMITMENTS
OMI and a joint venture partner have committed to construct a vessel being
built in the Peoples Republic of China for a cost of approximately $56,000,000,
which OMI guarantees 49 percent through a joint venture partner. The vessel is
scheduled to be delivered in 1996. OMI acts as a co-guarantor for a portion of
the debt incurred by joint ventures with affiliates of two of its joint venture
partners. The portion of debt guaranteed by the partners was approximately
$86,555,000 at March 31, 1996, with OMI's share of such guarantees being
approximately $42,580,000. OMI also is guarantor for one of its joint venture's
revolving lines of credit of up to $4,000,000 at March 31, 1996, with a
guarantee to OMI from its joint venture partner of 50 percent of the amount
guaranteed by
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<PAGE>
OMI.
The Company and its joint venture partners have committed to fund any
working capital deficiencies that may be incurred by their joint venture
investments. At March 31, 1996, no such deficiencies have occurred which have
required funding.
EFFECTS OF INFLATION
The Company does not consider inflation to be a significant risk to the
cost of doing business in the current or foreseeable future. Inflation has a
moderate impact on operating expenses, drydocking expenses and corporate
overhead.
-13-
<PAGE>
PART II: OTHER INFORMATION
Item 1 - Legal Proceedings
None.
Item 2 - Changes in Securities
None.
Item 3 - Defaults upon Senior Securities
None.
Item 4 - Submission of Matters to a Vote of Security Holders
None
Item 5 - Other Information
None.
Item 6 - Exhibit and Reports on Form 8-K
a. Exhibits
27 OMI Corp. - Financial Data Schedule, dated March 31, 1996.
b. Reports on Form 8-K
None.
-14-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
OMI CORP.
- --------------------------------------------------------------------------------
(REGISTRANT)
Date: May 14, 1996 By: Jack Goldstein
------------ ---------------
Jack Goldstein
Chairman of the Board and
Chief Executive Officer
Date: May 14, 1996 By: Vincent de Sostoa
--------------------- -----------------
Vincent de Sostoa
Senior Vice President/
Finance and Chief
Financial Officer
-15-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Exhibit 27 contains summary information extracted from OMI Corp. and subsidiaries
Consolidated condensed financial statements and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<EXCHANGE-RATE> 1
<CASH> 10852
<SECURITIES> 0
<RECEIVABLES> 13708
<ALLOWANCES> 0
<INVENTORY> 0
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0
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