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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 September 30, 2000
------------------
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
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MARITRANS INC.
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(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)
TWO HARBOUR PLACE
302 KNIGHTS RUN AVENUE
SUITE 1200
TAMPA, FLORIDA 33602
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(Address of principal executive offices)
(Zip Code)
(813) 209-0600
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Registrant's telephone number, including area code
Not Applicable
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(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, 10,972,055 shares
outstanding as of November 10, 2000
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MARITRANS INC.
INDEX
<TABLE>
<CAPTION>
Page
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<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets - September 30, 2000 and December 31, 1999 .....................3
Condensed Consolidated Statements of Operations - Three months
ended September 30, 2000 and 1999 ..................................................................4
Condensed Consolidated Statements of Operations - Nine months ended September 30,
2000 and 1999.......................................................................................5
Condensed Consolidated Statements of Cash Flows - Nine months
ended September 30, 2000 and 1999 .................................................................6
Notes to Condensed Consolidated Financial Statements .................................................7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations ...............10
PART II. OTHER INFORMATION
Item 1. Legal Proceedings ...................................................................................16
Item 6. Exhibits and Reports on Form 8-K ....................................................................17
SIGNATURES ............................................................................................................18
</TABLE>
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PART I: FINANCIAL INFORMATION
MARITRANS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
($000)
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
2000 1999
----------- --------
(Unaudited) (Note 1)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 28,910 $ 13,232
Cash and cash equivalents - restricted 10,300 21,000
Trade accounts receivable 12,227 14,676
Other accounts receivable 4,837 5,782
Inventories 3,456 3,355
Deferred income tax benefit 4,003 4,013
Prepaid expenses 2,989 3,101
-------- --------
Total current assets 66,722 65,159
Vessels and equipment 284,940 278,471
Less accumulated depreciation 129,510 119,013
-------- --------
Net vessels and equipment 155,430 159,458
Notes receivable 4,840 3,692
Other 11,136 22,712
-------- --------
Total assets $238,128 $251,021
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Debt due within one year $ 7,861 $ 7,773
Trade accounts payable 1,047 1,686
Accrued interest 2,104 1,203
Accrued shipyard cost 7,821 6,961
Accrued wages and benefits 4,051 2,727
Other accrued liabilities 4,420 9,651
-------- --------
Total current liabilities 27,304 30,001
Long-term debt 68,336 75,861
Deferred shipyard costs 11,730 10,442
Other liabilities 4,557 4,095
Deferred income taxes 35,925 35,925
Stockholders' equity 90,276 94,697
-------- --------
Total liabilities and stockholders' equity $238,128 $251,021
======== ========
</TABLE>
See notes to financial statements.
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MARITRANS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
($000, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
JULY 1 TO JULY 1 TO
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999
------------------ ------------------
<S> <C> <C>
Revenues $ 32,744 $ 39,185
Costs and expenses:
Operation expense 17,663 22,637
Maintenance expense 3,744 6,957
General and administrative 2,354 2,613
Depreciation and amortization 4,299 5,223
-------- --------
Total operating expense 28,060 37,430
-------- --------
Operating income 4,684 1,755
Interest expense (1,478) (1,623)
Other income (loss), net 1,067 (4,829)
-------- --------
Income (loss) before income taxes 4,273 (4,697)
Income tax provision (benefit) 1,565 (1,788)
-------- --------
Net income (loss) $ 2,708 $ (2,909)
======== ========
Basic earnings (loss) per share $ 0.25 $ (0.25)
Diluted earnings (loss) per share $ 0.24 $ (0.25)
Dividends declared per share $ 0.10 $ 0.10
</TABLE>
See notes to financial statements.
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MARITRANS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
($000, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
JANUARY 1 TO JANUARY 1 TO
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999
------------------ ------------------
<S> <C> <C>
Revenues $ 91,468 $ 117,417
Costs and expenses:
Operation expense 51,638 66,611
Maintenance expense 13,800 21,869
General and administrative 6,459 7,435
Depreciation and amortization 12,856 15,512
--------- ---------
Total operating expense 84,753 111,427
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Operating income 6,715 5,990
Interest expense (4,791) (5,170)
Other income (loss), net 2,458 (687)
--------- ---------
Income before income taxes 4,382 133
Income tax provision 1,665 57
--------- ---------
Net income $ 2,717 $ 76
========= =========
Basic earnings per share $ 0.25 $ 0.01
Diluted earnings per share $ 0.24 $ 0.01
Dividends declared per share $ 0.30 $ 0.30
</TABLE>
See notes to financial statements.
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MARITRANS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
($000)
<TABLE>
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30,
2000 1999
--------------------------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 2,717 $ 76
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization 12,856 15,512
Deferred income tax provision 10 (615)
Stock compensation 770 682
Changes in receivables, inventories and prepaid expenses 3,562 6,019
Changes in current liabilities, other than debt (2,785) 3,468
Non-current changes, net 2,534 1,489
(Gain) Loss on sale of fixed assets 637 1,493
-------- --------
17,584 28,048
-------- --------
Net cash provided by operating activities 20,301 28,124
Cash flows from investing activities:
Release of cash and cash equivalents - restricted 21,548 --
Cash proceeds from sale of equipment 165 21,136
Purchase of vessels, terminals and equipment (10,991) (4,594)
-------- --------
Net cash provided by investing activities 10,722 16,542
-------- --------
Cash flows from financing activities:
Payment of long-term debt (7,437) (10,776)
Borrowings under revolving credit facility 2,500 14,908
Repayments of borrowing under revolving credit facilities (2,500) (25,481)
Proceeds from exercise of stock options 129 --
Purchase of treasury stock (4,617) (2,458)
Dividends declared and paid (3,420) (3,621)
-------- --------
Net cash provided by (used in) financing activities (15,345) (27,428)
-------- --------
Net increase in cash and cash equivalents 15,678 17,238
Cash and cash equivalents at beginning of period 13,232 1,214
-------- --------
Cash and cash equivalents at end of period $ 28,910 $ 18,452
======== ========
Noncash investing and financing activities
Borrowings under long-term debt for purchase of vessel -- $ 4,947
Note receivable from sale of property $ 1,575 --
</TABLE>
See notes to financial statements
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MARITRANS INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
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.
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, 1999, 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, 1999.
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2. EARNINGS PER COMMON SHARE
The following data shows the amounts used in computing basic and
diluted earnings per share ("EPS"):
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
---- ---- ---- ----
(000's) (000's)
<S> <C> <C> <C> <C>
Income available to common stockholders
used in basic EPS $ 2,708 $ (2,909) $ 2,717 $ 76
Weighted average number of common
shares used in basic EPS 10,755 11,577 11,082 11,810
Effect of dilutive securities:
Stock options and restricted shares 304 -- 288 113
Weighted number of common shares
and dilutive potential common
stock used in diluted EPS 11,059 11,577 11,370 11,923
</TABLE>
3. INCOME TAXES
The Company's effective tax rate differs from the federal statutory
rate due primarily to state income taxes and certain nondeductible
items.
4. SHARE BUYBACK PROGRAM
On February 9, 1999, the Board of Directors authorized a share buyback
program for the acquisition of up to one million shares of the
Company's common stock. This amount represented approximately 8 percent
of the 12.1 million shares outstanding at the beginning of the program.
In February 2000, the Board of Directors authorized the acquisition of
an additional one million shares in the program. As of September 30,
2000, 1,411,700 shares have been repurchased under the plan and were
financed from internally generated funds.
5. CORPORATE RELOCATION AND DOWNSIZING
In September 1999, the Company announced its intent to relocate the
corporate headquarters from Philadelphia, PA to Tampa, FL. In April
2000, this move occurred. The Company expenses costs associated with
the move as incurred. As of September 30, 2000 the Company has incurred
$1.1 million of costs associated with the move. Also, in September
1999, the Company announced a reduction in its
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shoreside staff. The Company accrued $0.9 million of severance costs in
September 1999 for the cash benefits to be paid to the employees who
were terminated. Of this amount, approximately $0.8 million has been
paid through September 30, 2000.
6. SALE OF ASSETS
In June 2000, the Company sold real estate and equipment located in
Philadelphia, PA. The sales price totaled $1.75 million of which $1.58
million was received in the form of a note. The pre-tax loss on the
sale was $0.7 million and is included in other income in the statement
of operations.
7. IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS
In June 1998, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 133, Accounting for Derivative
Instruments and Hedging Activities ("Statement 133"). Statement 133
establishes accounting and reporting standards for derivative
instruments, including certain derivative instruments embedded in other
contracts (collectively referred to as derivatives), and for hedging
activities. The Company will adopt Statement 133 on January 1, 2001,
and the effect of adoption will not have a material effect on the
Company.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward Looking Information
Some of the statements in this Form 10-Q (the "10-Q") constitute forward-looking
statements under Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, including
statements made with respect to present or anticipated utilization, future
revenues and customer relationships, capital expenditures, future financings,
and other statements regarding matters that are not historical facts and involve
predictions. These statements involve known and unknown risks, uncertainties and
other factors that may cause actual results, levels of activity, growth,
performance, earnings per share or achievements to be materially different from
any future results, levels of activity, growth, performance, earnings per share
or achievements expressed in or implied by such forward-looking statements.
The forward-looking statements included in this 10-Q relate to future events or
the Company's future financial performance. In some cases, the reader can
identify forward-looking statements by terminology such as "may," "believe,"
"future," "potential," "estimate," "expect," "intend," "plan," "through,"
"provide," "meet," "allow," "represent," "result," "seek," "increase," "work,"
"perform," "make," "continue," "will," "include," or the negative of such terms
or comparable terminology. These forward-looking statements inherently involve
certain risks and uncertainties, although they are based on the Company's
current plans or assessments that we believe are reasonable as of the date of
this 10-Q. Factors that may cause actual results, goals, targets or objectives
to differ materially from those contemplated, projected, forecast, estimated,
anticipated, planned or budgeted in such forward-looking statements include,
among others, the factors outlined in this 10-Q and general financial, economic,
environmental and regulatory conditions affecting the oil and marine
transportation industries in general. These factors may cause the Company's
actual results to differ materially from any forward-looking statement. Given
such uncertainties, current or prospective investors are cautioned not to place
undue reliance on any such forward-looking statements.
Although the Company believes that the expectations in the forward-looking
statements are reasonable, the Company cannot guarantee future results, levels
of activity, performance, growth, earnings per share or achievements. However,
neither the Company nor any other person assumes responsibility for the accuracy
and completeness of such statements. The Company is under no duty to update any
of the forward-looking statements after the date of this 10-Q to conform such
statements to actual results.
The following discussion should be read in conjunction with the unaudited
financial statements and notes thereto included in Part I Item 1 of this Form
10-Q and the audited financial statements and notes thereto and
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Management's Discussion and Analysis of Financial Condition and Results of
Operations for the year ended December 31, 1999 contained in the Company's
Annual Report on Form 10-K for the year ended December 31, 1999.
Results of Operations
Three Month Comparison
Revenue in the third quarter of 2000 was $32.7 million compared to $39.2 million
in the third quarter of 1999, a decrease of $6.5 million or 16.6 percent.
Although revenue in the quarter decreased $9.7 million as a result of the
thirty-one vessels and the petroleum storage terminals that were sold in 1999,
revenue for the remaining fleet for the comparable periods increased $3.2
million. This increase resulted from both high utilization on the operating
vessels and increased daily rates charged to customers. Vessel utilization, as
measured by revenue days divided by calendar days available, for the remaining
comparable fleets decreased from 87.8 percent in the third quarter of 1999 to
86.7 percent in the third quarter of 2000. The overall decrease was the result
of the OCEAN 244 being out of service in the quarter for its double hull
rebuild, which will continue into late in the fourth quarter. Excluding the
OCEAN 244, utilization for the operating vessels was 93.0 percent. Barrels of
cargo transported increased from 46.2 million in the third quarter of 1999 to
49.0 million in the third quarter of 2000 for the comparable fleets. More
capacity is expected to be out of service for shipyardings in the fourth quarter
than was experienced in the third quarter, which the Company believes will
result in lower utilization. The average daily rate increased over the
comparable period in 1999 due primarily to increased fuel costs, discussed in
operating expenses below, for the amounts the Company was able to pass through
to customers under its contractual agreements. A small portion of the increase
in daily rates was due to an increase in the overall market rates, which began
late in the quarter and is expected to continue through the remainder of 2000.
Total operating expenses in the third quarter of 2000 were $28.1 million
compared to $37.4 million in the third quarter of 1999, a decrease of $9.3
million or 24.9 percent. This decrease was due primarily to the sale of assets
discussed above. In addition, shoreside related expenses decreased as a result
of the reduction in shoreside staff in 1999. In September 1999, the Company had
recorded a severance expense of $0.9 million for these employees. Maintenance
expense decreased as a result of the reduction in fleet size and the impact of
the rebuilding of the single-hulled barges to double-hulled barges, which allows
certain procedures to be performed while the vessel is in the shipyard for its
double-hulling. Offsetting the above decreases in operating expenses was an
increase in fuel expense for fuel used on the vessels. The average price per
gallon in the third quarter of 2000 increased 74% compared to the third quarter
of 1999. Under its contractual agreements, the Company was able to pass through
to customers some of these fuel costs. The Company
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incurred $0.5 million in relocation costs in the current quarter for the move of
the corporate headquarters from Philadelphia, PA to Tampa, FL.
Operating income increased as a result of the aforementioned changes in revenue
and expenses. Other income includes interest income of $1.0 million. Other
income for the third quarter 1999 included a loss of $5.9 million on the sale of
the Company's two petroleum storage terminals during that quarter.
Net income for the third quarter of 2000 increased compared to the third quarter
of 1999 due to the aforementioned changes in revenue, expenses and other income.
Nine Month Comparison
Revenue for the nine months ended September 30, 2000 was $91.4 million compared
to $117.4 million for the nine months ended September 30, 1999, a decrease of
$26.0 million or 22.1 percent. Although revenue in the nine months decreased
$31.8 million as a result of the thirty-one vessels and the petroleum storage
terminals that were sold in 1999, revenue for the remaining fleet for the
comparable periods increased $5.8 million. This revenue increase resulted from
increases in both the utilization of the operating vessels and in the average
daily rates charged to customers. Vessel utilization, as measured by revenue
days divided by calendar days available, decreased from 88.0 percent for the
nine months ended September 30, 1999 to 86.5 percent for the nine months ended
September 30, 2000 for the remaining comparable fleets. The overall decrease was
the result of the OCEAN 244 being out of service for six months through
September 30, 2000, for its double hull rebuild. The rebuild will continue into
late in the fourth quarter. The operating vessels experienced high utilization
during the period. Excluding the OCEAN 244, utilization for the operating
vessels was 90.4 percent. Barrels of cargo transported increased from 133.9
million for the nine months ended September 30, 1999 to 145.0 million for the
nine months ended September 30, 2000 for the remaining comparable fleets. The
average daily rate increased over the comparable period in 1999 due primarily to
increased fuel costs, discussed in operating expenses below, for amounts the
Company was able to pass through to customers under its contractual agreements.
Late in the period, overall market rates began to increase. This was due to the
amount of capacity already under contract to major oil companies and to low
distillate inventories in the United States, particularly heating oil in the
Northeast, both of which have raised rates for available Jones Act capacity. The
Company expects the strong market rates to continue and to have a positive
impact on the Company's revenue.
Total operating expenses for the nine months ended September 30, 2000 were $84.8
million compared to $111.4 million for the nine months ended September 30, 1999,
a decrease of $26.6 million or 23.9 percent.
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This decrease was due primarily to the sale of assets discussed above. In
addition, shoreside related expenses decreased as a result of the reduction in
shoreside staff in 1999. In September 1999, the Company recorded a severance
charge of $0.9 million for these employees. Maintenance expense decreased as a
result of the reduction in fleet size and the impact of the rebuilding of the
single-hulled barges to double-hulled barges, which allows certain procedures to
be performed while the vessel is in the shipyard for its double-hulling.
Offsetting these decreases in operating expenses was an increase in fuel expense
for fuel used on the vessels. The year to date average price per gallon at
September 30, 2000 increased 79% compared to the same period in 1999. Based on
market expectations of oil prices continuing at or above $30 per barrel, the
Company believes that its fuel costs will continue at rates higher than those in
1999 were. Some of this increase in fuel costs was passed through to customers
under contractual agreements. The Company incurred $1.1 million in relocation
costs through September 30, 2000 for the move of the corporate headquarters from
Philadelphia, PA to Tampa, FL in 2000.
Operating income increased as a result of the aforementioned changes in revenue
and expenses.
Other income includes interest income of $3.0 million offset by a pre-tax loss
on the sale of Philadelphia real estate and equipment of $0.7 million. Other
income for the nine months ended September 30, 1999 included a loss of $1.5
million on the disposition of five vessels and two petroleum storage terminals.
Net income for the nine months ended September 30, 2000 increased compared to
the nine months ended September 30, 1999 due to the aforementioned changes in
revenue, expenses and other income.
Liquidity and Capital Resources
For the nine months ended September 30, 2000, 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 Inc. to pay a dividend of $0.10 per common share in the current
quarter. The ratio of total debt to the sum of total debt and stockholders
equity was 0.46:1 at September 30, 2000.
Management believes that in 2000, funds provided by operating activities,
augmented by financing and investing transactions, will be sufficient to finance
operations, anticipated capital expenditures, lease payments and required debt
repayments. While dividends were paid quarterly in each of the last two years,
there can be no assurances that dividend payments will continue.
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On February 9, 1999, the Board of Directors authorized a share buyback program
for the acquisition of up to one million shares of the Company's common stock.
This amount represented approximately 8 percent of the 12.1 million shares
outstanding at the beginning of the program. In February 2000, the Board of
Directors authorized the acquisition of an additional one million shares in the
program. As of September 30, 2000, 1,411,700 shares have been repurchased under
the plan and have been financed from internally generated funds. The Company
intends to hold the majority of the repurchased shares as treasury stock,
although some shares will be used for employee compensation plans and others may
be used for 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 rebuild is
expected to have a total cost of approximately $12 million. As of September 30,
2000, $10.4 million has been paid to the shipyard contractor. The vessel went
into the shipyard late in the first quarter of 2000 and is expected to return to
service late in the fourth quarter of 2000. The Company has been and expects to
continue financing this project from internally generated funds.
On August 17, 2000, the Company awarded a contract to rebuild a third large
single hull barge, the OCEAN CITIES, to a double hull configuration at an
expected total cost of approximately $15.5 million. As of September 30, 2000,
$2.7 million has been paid to the shipyard contractor for prefabrication and
other advance design work. The Company has been and expects to continue
financing this project from internally generated funds.
In September 1999, the Company announced its intent to relocate the corporate
headquarters from Philadelphia, PA to Tampa, FL. In April 2000, this move
occurred. Most of the costs related to this move have been incurred as of
September 30, 2000. Amounts incurred to that date are $1.1 million. The Company
maintains an office in the Philadelphia area that supports the lightering
operations.
Also in September 1999, the Company announced a reduction in its shoreside
staff. The Company accrued $0.9 million of severance costs in September 1999 for
the cash benefits to be paid to the employees who were terminated. At September
30, 2000, approximately $0.8 million of the severance costs have been paid to
the terminated employees.
Debt Obligations and Borrowing Facility
At September 30, 2000, the Company had $76.2 million in total outstanding debt,
secured by mortgages on most of the fixed assets of the Company. The current
portion of this debt at September 30, 2000 was $7.9 million.
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In 1997, Maritrans entered into a multi-year revolving credit facility for
amounts up to $33 million with Mellon Bank, N.A. that are collateralized by
mortgages on tankers. In 2000, this facility was extended to October 30, 2002.
At September 30, 2000, $22.0 million was outstanding under this facility.
Impact of Recent Accounting Pronouncements
In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133, Accounting for Derivative Instruments
and Hedging Activities ("Statement 133"). Statement 133 establishes accounting
and reporting standards for derivative instruments, including certain derivative
instruments embedded in other contracts (collectively referred to as
derivatives), and for hedging activities. The Company will adopt Statement 133
on January 1, 2001, and the effect of adoption will not have a material effect
on the Company.
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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 April 1999, the Court ruled that the case was ripe only with respect
to vessels that OPA had forced out of service, which would include
vessels that Maritrans had sold, scrapped or rebuilt. Maritrans alleges
that the value of these assets, for which compensation is currently
due, is approximately $100 million. The trial regarding these vessels
will determine whether the double hull requirement is a taking, and if
so, the amount of damages due Maritrans. The trial is scheduled to
begin in January, 2001.
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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
September 30, 2000.
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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: November 13, 2000
-----------------------------------
H. William Brown
Chief Financial Officer
(Principal Financial Officer)
By: /s/ Walter T. Bromfield Dated: November 13, 2000
-----------------------------------
Walter T. Bromfield
Treasurer and Controller
(Principal Accounting Officer)
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EXHIBIT INDEX
Exhibit Page Number
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27 Financial Data Schedule --
19
