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•Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments; •Adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our debt; •Adjusted EBITDA does not reflect changes in or cash requirements for our working capital needs; and •other companies in our industry may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.
Because of these limitations, Adjusted EBITDA should not be considered a measure of discretionary cash available to us to invest in the growth of our business.
The following table sets forth a reconciliation of total comprehensive income to Adjusted EBITDA for the periods presented:
Three months ended Year ended December 31, December 31, -------------------- --------------------(Expressed in thousands of U.S. dollars) 2012 2011 2012 2011 --------- --------- --------- --------- (Unaudited) (Unaudited)Total comprehensive (loss)/income for the period (81,244) 2,337 (82,804) 6,925Interest and finance costs, net 799 832 3,311 2,769Gain on derivative financial instruments (199) (344) (693) (369)Foreign exchange gains net, (11) (9) (64) (9)Depreciation 2,581 2,935 11,255 10,180Depreciation of drydocking costs 179 160 763 318Amortization of fair value of time charter acquired 458 460 1,823 779Impairment loss 80,244 - 80,244 - --------- --------- --------- ---------Adjusted EBITDA (unaudited) 2,807 6,371 13,835 20,593 ========= ========= ========= ========= --------------------------- As of As of(Expressed in thousands of U.S. dollars) December 31, December 31, --------------------------- 2012 2011 ------------- ------------- (Unaudited) Audited ------------- -------------Consolidated condensed statement of financial position:Vessels, net 140,860 242,507Other non-current assets 106 85Total non-current assets 140,966 242,592Cash and bank balances and bank deposits 11,653 9,301Other current assets 4,227 4,166Non current assets held for sale 8,876 -Total current assets 24,756 13,467Total assets 165,722 256,059Total equity 55,182 140,019Total bank debt 105,519 110,815Other liabilities 5,021 5,225Total Liabilities 110,540 116,040Total equity and liabilities 165,722 256,059 Three months ended Year ended December 31, December 31, -------------------- --------------------(Expressed in thousands of U.S. dollars) 2012 2011 2012 2011 --------- --------- --------- --------- (Unaudited) (Unaudited)Statement of cash flow data:Net cash generated from operating activities 5,638 5,177 14,370 19,774Net cash generated (used in)/from investing activities (341) 1,005 (341) (61,782)Net cash (used in)/generated from financing activities (2,336) (3,916) (11,680) 25,681 Three months ended Year ended December 31, December 31, -------------------- -------------------- 2012 2011 2012 2011 --------- --------- --------- ---------Ownership days (1) 644 644 2,562 2,125Available days (2) 644 644 2,498 2,111Operating days (3) 643 644 2,471 2,083Bareboat charter days (4) 92 92 366 365Fleet utilization (5) 100% 100% 98.9% 98.7%Average number of vessels (6) 7.0 7.0 7.0 5.8Daily time charter equivalent (TCE) rate (7) $ 10.344 $ 14,987 $ 10,660 $ 15.619Daily operating expenses (8) $ 5,321 $ 4,031 $ 4,736 $ 4,527(1) Ownership days are the aggregate number of days in a period during which each vessel in our fleet has been owned by us.(2) Available days are the number of ownership days less the aggregate number of days that our vessels are off-hire due to scheduled repairs or repairs under guarantee, vessel upgrades or special surveys.(3) Operating days are the number of available days less the aggregate number of days that the vessels are off-hire due to any reason, including unforeseen circumstances.(4) Bareboat charter days are the aggregate number of days during which the vessels in our fleet are subject to a bareboat charter.(5) We calculate fleet utilization by dividing the number of operating days during a period by the number of available days during the period.(6) Average number of vessels is measured by the sum of the number of days each vessel was part of our fleet during a relevant period divided by the number of calendar days in such period.(7) TCE rates are our revenue less net revenue from our bareboat charters less voyage expenses during a period divided by the number of our available days during the period excluding bareboat charter days, which is consistent with industry standards. TCE is a measure not in accordance with GAAP.(8) We calculate daily vessel operating expenses by dividing vessel operating expenses by ownership days for the relevant time period excluding bareboat charter days.
