<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark One)
X Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
- --- Exchange Act of 1934
For the Quarterly Period ended June 30, 1999
-------------
or
Transition Report Pursuant to Section 13 or 15(d) of the Securities
- --- Exchange Act of 1934
For the Transition Period from to
------------ ------------
Commission File Number 1-9063
--------
MARITRANS INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 51-0343903
- -------------------------------- -------------------
(State or other jurisdiction of (Identification No.
incorporation or organization) I.R.S. Employer)
1818 MARKET STREET, SUITE 3540
PHILADELPHIA, PENNSYLVANIA 19103
----------------------------------------
(Address of principal executive offices)
(Zip Code)
(215) 864-1200
--------------------------------------------------
Registrant's telephone number, including area code
Not Applicable
----------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
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 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 requirements
for the past 90 days.
Yes X No
----- ----
Common Stock $.01 par value, 11,968,890 shares outstanding as of August 2, 1999
1
<PAGE>
MARITRANS INC.
INDEX
<TABLE>
<CAPTION>
Page
----
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets - June 30, 1999 and December 31, 1998 3
Condensed Consolidated Statements of Income - Three months ended June 30, 1999
and 1998 4
Condensed Consolidated Statements of Income - Six months ended June 30, 1999
and 1998 5
Condensed Consolidated Statements of Cash Flows - Six months
ended June 30, 1999 and 1998 6
Notes to Condensed Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 15
Item 6. Exhibits and Reports on Form 8-K 16
SIGNATURES 17
</TABLE>
2
<PAGE>
PART I: FINANCIAL INFORMATION
MARITRANS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
($000)
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
--------- ------------
(Unaudited) (Note 1)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 8,102 $ 1,214
Trade accounts receivables 13,990 18,030
Other accounts receivable 7,526 9,434
Inventories 4,432 4,656
Deferred income tax benefit 4,902 4,627
Prepaid expenses 3,836 3,479
-------- --------
Total current assets 42,788 41,440
Vessels, terminals and equipment 350,985 358,197
Less accumulated depreciation 159,468 151,506
-------- --------
Net vessels, terminals and equipment 191,517 206,691
Other 6,185 6,775
-------- --------
Total assets $240,490 $254,906
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Debt due within one year $ 7,700 $ 11,873
Trade accounts payable 1,841 1,856
Accrued interest 1,205 1,351
Accrued shipyard cost 8,061 7,413
Accrued wages and benefits 4,572 3,559
Other accrued liabilities 7,838 8,559
-------- --------
Total current liabilities 31,217 34,611
Long-term debt 69,900 83,400
Deferred shipyard costs 12,091 11,119
Other liabilities 5,475 5,107
Deferred income taxes 32,699 30,854
Stockholders' equity 89,108 89,815
-------- --------
Total liabilities and stockholders' equity $240,490 $254,906
======== ========
</TABLE>
See notes to financial statements.
3
<PAGE>
MARITRANS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
($000, except per share amounts)
<TABLE>
<CAPTION>
April 1 to April 1 to
June 30, 1999 June 30, 1998
------------- -------------
<S> <C> <C>
Revenues $ 39,834 $ 38,137
Costs and expenses:
Operation expense 21,999 21,426
Maintenance expense 7,433 6,036
General and administrative 2,493 2,295
Depreciation and amortization 5,129 4,868
-------- --------
Total operating expense 37,054 34,625
-------- --------
Operating income 2,780 3,512
Interest expense (1,614) (1,623)
Other income, net 290 231
-------- --------
Income before income taxes 1,456 2,120
Income tax provision 556 795
-------- --------
Net income $ 900 $ 1,325
======== ========
Basic and diluted earnings per share $ 0.08 $ 0.11
Dividends declared per share $ 0.10 $ 0.09
</TABLE>
See notes to financial statements.
4
<PAGE>
MARITRANS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
($000, except per share amounts)
<TABLE>
<CAPTION>
January 1 to January 1 to
June 30, 1999 June 30, 1998
------------- -------------
<S> <C> <C>
Revenues $ 78,232 $ 73,967
Costs and expenses:
Operation expense 43,974 41,078
Maintenance expense 14,912 12,452
General and administrative 4,822 4,684
Depreciation and amortization 10,289 9,501
-------- --------
Total operating expense 73,997 67,715
-------- --------
Operating income 4,235 6,252
Interest expense (3,547) (3,518)
Other income, net 4,142 538
-------- --------
Income before income taxes 4,830 3,272
Income tax provision 1,845 1,227
-------- --------
Net income $ 2,985 $ 2,045
======== ========
Basic and diluted earnings per share $ 0.25 $ 0.17
Dividends declared per share $ 0.20 $ 0.18
</TABLE>
See notes to financial statements.
5
<PAGE>
MARITRANS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
($000)
<TABLE>
<CAPTION>
Six Months Ended June 30,
1999 1998
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 2,985 $ 2,045
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization 10,289 9,501
Deferred income tax provision 1,570 (1,334)
Stock compensation 396 308
Changes in receivables, inventories, and prepaid expenses 5,815 (2,214)
Changes in current liabilities, other than debt 779 (1,239)
Non-current changes, net 1,735 794
(Gain) loss on sale of fixed assets (3,970) --
-------- --------
16,614 5,816
-------- --------
Net cash provided by operating activities 19,599 7,861
Cash flows from investing activities:
Proceeds from litigation settlement -- 1,025
Cash proceeds from sale of equipment 11,458 --
Purchase of vessels, terminals and equipment (2,408) (5,838)
-------- --------
Net cash provided by (used in) investing activities 9,050 (4,813)
-------- --------
Cash flows from financing activities:
Payment of long-term debt (7,100) (15,823)
Borrowings under revolving credit facility 14,908 10,000
Repayments of borrowing under revolving credit facilities (25,481) --
Purchase of treasury stock (1,658) --
Dividends declared and paid (2,430) (2,179)
-------- --------
Net cash provided by (used in) financing activities (21,761) (8,002)
-------- --------
Net increase (decrease) in cash and cash equivalents 6,888 (4,954)
Cash and cash equivalents at beginning of period 1,214 13,312
-------- --------
Cash and cash equivalents at end of period $ 8,102 $ 8,358
======== ========
</TABLE>
See notes to financial statements
6
<PAGE>
MARITRANS INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1999
1. Basis of Presentation/Organization
Maritrans Inc. owns Maritrans Operating Partners L.P. ("the Operating
Partnership"), Maritrans General Partner Inc., Maritrans Tankers Inc.,
Maritrans Barge Co., Maritrans Holdings Inc. and other Maritrans
entities (collectively, the "Company"). These subsidiaries, directly and
indirectly, own and operate oil tankers, tugboats, and oceangoing
petroleum tank barges principally used in the transportation of oil and
related products, along the Gulf and Atlantic Coasts, and own and
operate petroleum storage facilities on the Atlantic Coast.
In the opinion of management, the accompanying condensed consolidated
financial statements of Maritrans Inc., which are unaudited (except for
the Condensed Consolidated Balance Sheet as of December 31, 1998, which
is derived from audited financial statements), include all adjustments
(consisting of normal recurring accruals) necessary to present fairly
the financial statements of the consolidated entities.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements
and accompanying notes. Actual results could differ from those
estimates.
Pursuant to the rules and regulations of the Securities and Exchange
Commission, the unaudited condensed consolidated financial statements do
not include all of the information and notes normally included with
annual financial statements prepared in accordance with generally
accepted accounting principles. These financial statements should be
read in conjunction with the consolidated historical financial
statements and notes thereto included in the Company's Form 10-K for the
period ended December 31, 1998.
7
<PAGE>
2. Earnings per Common Share
The following data show the amounts used in computing basic and diluted
earnings per share ("EPS"):
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
---- ---- ---- ----
(000's) (000's)
<S> <C> <C> <C> <C>
Income available to common stockholders
used in basic EPS $ 900 $ 1,325 $ 2,985 $ 2,045
Weighted average number of common
shares used in basic EPS 11,788 12,105 11,902 12,075
Effect of dilutive securities:
Stock options and restricted shares 132 244 125 250
Weighted number of common shares
and dilutive potential common
stock used in diluted EPS 11,920 12,349 12,027 12,325
</TABLE>
3. Income Taxes
The Company's effective tax rate differs from the federal statutory rate
due primarily to state income taxes.
4. Gain on Sale of Assets
In the first quarter of 1999, the Company sold five vessels that were no
longer deemed core to the Company's operations. The vessels consisted of
two tug and barge units that were working in Puerto Rico and a tugboat
working in the Atlantic Coast. The gain on the sale of these assets, net
of noncash adjustments, was $3.7 million and is included in other
income.
5. Share Buyback Program
On February 9, 1999, the Board of Directors authorized a share buyback
program for the acquisition of up to 1 million shares of the Company's
common stock. This amount represents approximately 8 percent of the 12.1
million shares outstanding at the beginning of the program. As of June
30, 1999, 281,900 shares have been repurchased under the plan and have
been financed from internally generated funds. Maritrans intends to hold
the majority of the shares as treasury stock, some of which may be used
for employee compensation plans, acquisition currency, and/or other
corporate purposes.
8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
Three Month Comparison
Revenue in the second quarter of 1999 increased over the second quarter of 1998.
Although barrels of cargo transported decreased from 66.6 million to 65.9
million, vessel utilization increased. Overall vessel utilization, including
changes in the fleet, as measured by revenue days divided by calendar days
available, increased from 80.2 percent in the second quarter of 1998 to 83.4
percent in the second quarter of 1999. The majority of this increased
utilization was a result of the Company's high level of contract business.
Additionally, there were refinery disruptions which created temporary
opportunties to more refined oil from the Gulf of Mexico to the West Coast.
Revenues also increased due to the addition of a 260,000 barrel oil tanker to
the fleet late in 1998.
Total operating expenses increased in the second quarter of 1999 compared to the
second quarter of 1998 due to the addition of the 260,000 barrel oil tanker to
the Gulf of Mexico fleet discussed above. Additionally, crew costs increased as
a result of training costs and as a result of vessels manned and utilized in
1999, which were out of service for maintenance in the corresponding period of
1998. Offsetting some of the increase in operating expense was the sale of two
tug and barge units operating in Puerto Rico in the first quarter of 1999. In
addition, in the second quarter of 1998, the Company chartered in outside oil
transportation capacity to cover contract commitments due to a heavy maintenance
schedule, which did not occur in the corresponding period of 1999.
Operating income decreased as a result of the aforementioned changes in revenue
and expenses.
Net income for the second quarter of 1999 decreased compared to the second
quarter of 1998 due to the aforementioned changes in revenue and expenses.
9
<PAGE>
Six Month Comparison
Revenue in the first six months of 1999 increased over the same period of 1998.
Although barrels of cargo transported decreased from 128.6 million to 128.3
million, vessel utilization increased. Overall vessel utilization, including
changes in the fleet, as measured by revenue days divided by calendar days
available, increased from 80.7 percent in the first half of 1998 to 82.3 percent
for the first half of 1999. The main factors of the revenue increase were the
addition of a 260,000 barrel oil tanker to the fleet in the second half of 1998,
a high level of contract business and a temporary increase in vessel demand due
to refinery disruptions on the West Coast. These increases were offset by the
reduction in revenue and in barrels transported because two units operating in
Puerto Rico were sold in the first quarter of 1999. Utilization in the current
year has been negatively affected by a shortage of qualified marine personnel.
The Company has hired qualified personnel to fill the open positions, thereby
lessening the impact of the shortage discussed in the first quarter of 1999.
Total operating expenses increased in the first six months of 1999 compared to
the first six months of 1998 due to the addition of a 260,000 barrel oil tanker
to the Gulf of Mexico fleet, costs associated with the shortage of qualified
seagoing personnel both from the third party chartered tugboats and training
costs, and crew costs for vessels in the shipyard in 1998, which returned to
service in 1999. These increases were offset by the sale of the two tug and
barge units used in the Puerto Rico operations.
Operating income decreased as a result of the aforementioned changes in revenue
and expenses.
Other income for the first quarter of 1999 includes a gain of $3.7 million, net
of noncash adjustments, on the disposition of five vessels that were no longer
deemed core to the Company's operations. The vessels consisted of two tug and
barge units, which were working in Puerto Rico and a tugboat working in the
Atlantic Coast. The total vessels sold represent less than 3% of the Company's
cargo carrying capacity.
Net income for the first six months of 1999 increased compared to the first six
months of 1998 due to the gain on the sale of assets discussed above, offset by
the aforementioned changes in revenue and expenses.
Management expects conditions in the Company's main markets to continue to be
very competitive as additional vessels are being introduced into the market by
Maritrans' competitors. Additionally, the recent trend of mergers, acquisitions
and consolidations among major oil companies that purchase both the Company's
and its competitors services is likely to continue to exert downward pressure on
market rates in general.
Liquidity and Capital Resources
For the six months ended June 30, 1999, funds provided by operating activities
were sufficient to meet debt service obligations and loan agreement
restrictions, to make capital acquisitions and improvements and to allow
Maritrans to pay a dividend of $0.10 per common share in the current quarter.
Dividend payments are expected to continue quarterly in 1999. The ratio of total
debt to the sum of total debt and stockholders equity is .47 at June 30, 1999.
10
<PAGE>
Management believes that in 1999 funds provided by operating activities,
augmented by financing and investing transactions, will be sufficient to provide
funds necessary for operations, anticipated capital expenditures, lease
payments, dividend payments and required debt repayments.
On February 9, 1999, the Board of Directors authorized a share buyback program
for the acquisition of up to 1 million shares of the Company's common stock.
This amount represents approximately 8 percent of the 12.1 million shares
outstanding at the beginning of the program. As of June 30, 1999, 281,900 shares
have been repurchased under the plan and have been financed from internally
generated funds. Maritrans intends to hold the majority of the shares as
treasury stock, some of which may be used for employee compensation plans,
acquisition currency, and/or other corporate purposes.
On July 30, 1999, the Company awarded a contract to rebuild a second large
single hull barge, the OCEAN 244, to a double hull configuration. The project
will begin early in the second quarter of 2000 and have a total cost of
approximately $12 million. Prefabrication work will begin immediately, with
interim payments being made to the shipyard contractor in the second half of
1999. The Company expects to finance this project from internally generated
funds.
In August 1999, the Company entered into an agreement to convert a tugboat
charter agreement to a purchase agreement. The Company will expend approximately
$2.5 million in the third quarter of 1999 and will continue payments of
approximately $76 thousand per month, for sixty-five months to the former
charterers under a note agreement with that party.
Debt Obligations and Borrowing Facility
At June 30, 1999, the Company had $77.6 million in total outstanding debt,
secured by mortgages on most of the fixed assets of the Company. The current
portion of this debt at June 30, 1999 was $7.7 million. The Company has a $10
million working capital facility, secured by its receivables and inventories. At
June 30, 1999, there is no balance outstanding under this facility, although the
Company utilizes this facility from time to time. The Company recently renewed
this facility through June of 2000.
In 1997, Maritrans entered into a multi-year revolving credit facility for
amounts up to $33 million with Mellon Bank, N.A. This facility is collateralized
by mortgages on tankers acquired in 1998 and 1997. At June 30, 1999, $22 million
was outstanding under this facility.
11
<PAGE>
Impact of Year 2000
Some of the Company's older computer programs and embedded computer components
suffer from Year 2000 incompatibilities. If left unchanged, this may cause a
system failure or miscalculations causing disruptions in operations, including,
among other things, the inability to operate vessel systems, a temporary
inability to process transactions, to send invoices, or to engage in normal
similar business activities. Following is a brief description of the tasks
incorporated in the Company's Year 2000 effort:
Software Inventory: List all custom software components that may
have a dependency on Year 2000.
Software Assessment: Analyze each software component to determine
if a Year 2000 dependency exists; if so then
determine magnitude of impact and effort for
remediation. Prioritize remediation efforts.
Software Remediation: Implement corrections or develop alternative
plans to work around the problem.
Imbedded Systems Inventory: Develop a list of all devices which contain
embedded computer chips, such as radars, the
Global Positioning System, rudder controls,
engine controls and truck rack monitors.
Imbedded Systems Assessment: Work with the individual manufacturing
companies to identify any problems with
specific devices. Conduct independent tests
to identify any possible problems.
Imbedded Systems Remediation: Work with the manufacturing companies to
implement replacement or work around plans.
Collaborate with other companies that have
the same dependencies to reduce cost and
increase effectiveness.
Service Provider Assessment: Verify that service providers are
investigating their own Year 2000 problems
and that the Company's interactions with
them are Year 2000 compliant. Identify key
service providers and conduct in-depth
analyses to verify that service to Maritrans
will not be impacted.
Customer Assessment: Verify that customers are proceeding with
their own Year 2000 efforts. Collaborate
with the customers to ensure that both
parties have a smooth transition into the
new millennium.
Contingency Planning: Identify and document contingency plans for
core business processes.
The Company completed an assessment of its business computing systems,
commercial off-the-shelf systems, and embedded systems and has developed new
software programs and replaced commercial systems to take advantage of newer
technologies. As a result of this initiative, the Company believes its business
operating systems, critical embedded systems, and commercial off-the-shelf
systems are Year 2000 compliant.
12
<PAGE>
For the Company's less critical commercial vessel systems' embedded components,
the Company is working closely with the manufacturers to verify compliance and
is proceeding with remediation efforts. The Company is collaborating with its
key service providers and customers to ensure their Year 2000 efforts will
identify and address common risks as well as developing contingency plans where
necessary. The Company's major customers do not expect to incur major
disruptions in the need for services due to any Year 2000 issues. While the
Company has completed its major efforts in assessing its business partners, it
will continue collaboration efforts to ensure a smooth transition into Year
2000. However, there can be no assurances that the companies with which the
Company does business will achieve a Year 2000 conversion in a timely fashion,
or that such failure to convert by another company will not have a material
adverse effect on Maritrans.
The Company's contingency planning effort has identified critical business
processes and the Year 2000 dependencies that these processes may have. The
Company has prioritized these processes and developed contingency plans to
eliminate or manage any Year 2000 failures that may occur. These contingency
plans consider the internal systems and facilities, customer and supplier
readiness, and infrastructure concerns. The Company has completed a majority of
its contingency planning efforts but plans on continuing its testing and
fine-tuning of these plans up through the end of 1999.
The Company believes that with the conversions to new software, the Year 2000
issue will not pose significant operational problems for its business computing
systems. The Company believes that with its program of verifying vessel systems
with manufacturers and replacing any non-compliant systems, the Year 2000 issue
will not pose significant operational problems. Due to the fact that there is
little standardization of equipment types aboard the vessels, the Company also
believes that if such verifications are faulty or if replacements are not
completed on time, these isolated problems will not have a material adverse
affect on operations. Completion of the Company's Year 2000 efforts does not
guarantee that Year 2000 will not have a material adverse effect on the Company.
The Company believes that the most reasonably likely worst case Year 2000
scenario would be that some of the customers' supply chains would be disrupted.
This would cause fewer barrels to be moved, interruption of normal distribution
patterns, and/or inability to transfer product, possibly leaving the vessels
empty and crippling the delivery system. In this event, the Company expects less
than half of the fleet would be impacted with a maximum of 5-day delays for
product loading. Vessels attempting to discharge would be rerouted to other
ports or customers and thus it is believed, not incur significant delays. As
part of the contingency planning efforts, the Company is addressing this
specific issue internally and with customers to reduce the likelihood and impact
of this scenario.
13
<PAGE>
The total cost of the Company's Year 2000 remediation efforts is expected to be
$0.6 million, with approximately $0.1 million to be incurred during the
remainder of the project. This amount is being financed from internally
generated funds. The costs of the project and the date on which the Company
believes it will complete the Year 2000 conversions are based on management's
best estimates. However, there can be no guarantees that these estimates will be
achieved and actual results could differ materially from those anticipated.
Specific factors that might cause material differences include, but are not
limited to, the availability and cost of personnel trained in this area, the
ability to upgrade all relevant operating systems, and similar uncertainties.
Forward Looking Information
In this report, the statements contained or incorporated by reference that are
not historical facts or statements of current condition are forward-looking
statements. Such forward-looking statements may be identified by, among other
things, the use of forward-looking terminology such as "believes", "expects",
"forecasts", "will" or "anticipates", or the negative thereof or other
variations thereon or comparable terminology, or by discussion of strategies or
intentions. These forward-looking statements, such as statements regarding
present or anticipated utilization, future revenues and customer relationships,
capital expenditures, future financings and other statements regarding matters
that are not historical facts, involve predictions. The Company's actual
results, performance or achievements could differ materially from the results
expressed in, or implied by, these forward-looking statements. Potential risks
and uncertainties that could affect the Company's actual results, performance or
achievements include, but are not limited to, the factors outlined in the
Company's Form 10-K filed with the Securities and Exchange Commission for the
year ended December 31, 1998 and general financial, economic, environmental and
regulatory conditions affecting the oil and marine transportation industry in
general. Given these uncertainties, current or prospective investors are
cautioned not to place undue reliance on any such forward-looking statements.
Furthermore, the Company disclaims any obligation or intent to update any such
factors or forward-looking statements to reflect future events or developments.
14
<PAGE>
Part II: OTHER INFORMATION
ITEM 1. Legal Proceedings
In Maritrans Inc., et al v. United States, Maritrans sued the
United States in 1996 alleging that the double hull requirement
of the Oil Pollution Act of 1990 ("OPA") which requires
retirement of Maritrans' fleet of single-hulled barges, is a
"taking" under the fifth amendment to the U.S. Constitution.
Maritrans is seeking in excess of $250 million in compensation
for this taking. A trial was held in July 1997 on the
preliminary issue of whether Maritrans had a cognizable property
interest that could be subject to taking.
In an Order dated October 29, 1997, the United States Court of
Federal Claims held that, at the time Maritrans built or
acquired its single-hulled tank barges, it could not have
reasonably anticipated that double hulls would be required
within the working lifetime of the vessels. This Order cleared
the way for further proceedings which will determine whether
OPA's double-hull requirements constitute a taking, and, if so,
the amount of compensation to be paid to Maritrans. The written
opinion of this Order was handed down on April 24, 1998.
In May 1998, the United States filed a Motion for
Reconsideration, which was denied by the Court some weeks later.
Subsequently, also in May, the United States filed a further
Motion for Summary Judgment. On March 11, 1999, the United
States Court of Federal Claims ("the Court") dismissed
Maritrans' suit in response to the Motion for Summary Judgment,
deciding essentially that the Company's cause of action is not
yet ripe for judicial determination because Maritrans' vessels
have not yet been forced out of service by OPA's phase-out
provisions. The Court determined that since the vessels are
continuing to generate income, the Company has not suffered the
degree of economic harm sufficient to constitute a Fifth
Amendment taking.
Maritrans, by Motion of March 22, 1999, asked the Court to
reconsider its dismissal. On April 30, 1999, following a
hearing, the Court did order the case reinstated on its trial
docket as to a portion of the vessels within the Maritrans
fleet. The parties have been engaged in efforts to agree upon
trial scheduling. On July 20, 1999, the United States filed a
motion asking that the Court certify various issues to the Court
of Appeals for the Federal Circuit. On August 2, 1999, Maritrans
filed a Motion with the Court in opposition to that filed by the
United States. The Court's response to these Motions has not yet
been received.
15
<PAGE>
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
No. 27 - Financial Data Schedule.
(b) Reports on Form 8-K
(1) No reports on Form 8-K were filed during the quarter ended
June 30, 1999.
16
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MARITRANS INC.
(Registrant)
By: /s/ H. William Brown Dated: August 13, 1999
-----------------------------------
H. William Brown
Chief Financial Officer
(Principal Financial Officer)
By: /s/ Walter T. Bromfield Dated: August 13, 1999
-----------------------------------
Walter T. Bromfield
Treasurer and Controller
(Principal Accounting Officer)
17
<PAGE>
EXHIBIT INDEX
Exhibit Page Number
- ------- -----------
27 Financial Data Schedule --
18
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 8,102
<SECURITIES> 0
<RECEIVABLES> 15,496
<ALLOWANCES> 1,506
<INVENTORY> 4,432
<CURRENT-ASSETS> 42,788
<PP&E> 350,985
<DEPRECIATION> 159,468
<TOTAL-ASSETS> 240,490
<CURRENT-LIABILITIES> 31,217
<BONDS> 69,900
0
0
<COMMON> 132
<OTHER-SE> 88,976
<TOTAL-LIABILITY-AND-EQUITY> 240,490
<SALES> 0
<TOTAL-REVENUES> 78,232
<CGS> 0
<TOTAL-COSTS> 73,997
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,547
<INCOME-PRETAX> 4,830
<INCOME-TAX> 1,845
<INCOME-CONTINUING> 2,985
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,985
<EPS-BASIC> .25
<EPS-DILUTED> .25
</TABLE>
