UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
the Securities Exchange Act of 1934
Date of Report: March 5, 2010
Commission file number 1- 33867
TEEKAY TANKERS LTD.
(Exact name of Registrant as specified in its charter)
4th floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08, Bermuda
(Address of principal executive office)
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form
20-F or Form 40-F.
Form 20-F þ Form 40- F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1).
Yes o No þ
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7).
Yes o No þ
|
TEEKAY TANKERS LTD. 4th Floor, Belvedere Building, 69 Pitts Bay Road Hamilton, HM 08, Bermuda |
EARNINGS RELEASE
TEEKAY TANKERS LTD. REPORTS
FOURTH QUARTER AND ANNUAL RESULTS
FOURTH QUARTER AND ANNUAL RESULTS
Highlights
| • | Declared a cash dividend of $0.26 per share for the quarter ended December 31, 2009, up
from $0.15 per share in the previous quarter. |
|
| • | Reported fourth quarter adjusted net income of $4.5 million, or $0.14 per share (excluding
an unrealized gain of $3.4 million, or $0.11 per share, relating to the change in fair value
of an interest rate swap agreement). |
|
| • | Earned average TCE rates of $15,283 per day on the spot Aframax fleet and $20,939 per day
on the spot Suezmax fleet during the quarter. |
|
| • | Total liquidity of $134 million as at December 31, 2009. |
Hamilton, Bermuda, March 4, 2010 — Teekay Tankers Ltd. (Teekay Tankers or the Company) today
reported its fourth quarter results for 2009. During the quarter, the Company generated $12.1
million in Cash Available for Distribution(1). On February 24, 2010, Teekay Tankers
declared a dividend of $0.26 per share for the fourth quarter of 2009, representing a total cash
dividend of approximately $8.3 million(2), which will be paid on March 15, 2010 to all
shareholders of record on March 8, 2010.
“Our fourth quarter results benefited from higher rates earned by our vessels on fixed-rate
charters which enabled us to declare an attractive dividend of $0.26 per share despite weak spot
tanker rates during most of the quarter,” commented Bjorn Moller, Teekay Tankers’ Chief Executive
Officer. “The spot tanker market strengthened near the end of the fourth quarter and into January
due to a combination of improving economic fundamentals worldwide, seasonal factors, and the
continued use of tankers for floating storage, all of which contributed to tighter supply and
demand fundamentals.”
Mr. Moller continued, “We have positioned Teekay Tankers’ fleet in anticipation of further spot
tanker market volatility in 2010. Currently, we have locked-in approximately 55 percent of our
2010 vessel operating days at fixed rates averaging over $26,500 per day leaving the rest of our
vessel days to benefit from any upside in the spot market. Combined with our low quarterly debt
service costs, this approach provides a floor under our cash flows, enabling us to pay a dividend
under any market scenario while at the same time providing shareholders with potential upside in
tanker rates. In 2010, our fixed-rate revenues alone are expected to cover all of our costs and
required debt repayments for the year, which means all of our spot revenues can be paid out as
dividends.”
Teekay Tankers’ policy is to pay a variable quarterly dividend equal to its Cash Available for
Distribution, subject to any reserves its board of directors may from time to time determine are
required. Since the Company’s initial public offering in December 2007, it has declared a dividend
in eight consecutive quarters, which now totals $4.79 per share on a cumulative basis (including
the $0.26 per share dividend to be paid on March 15, 2010).
| (1) | Cash Available for Distribution represents net income (loss) plus depreciation and
amortization, unrealized losses from derivatives, non-cash items and any write-offs or other
non-recurring items, less unrealized gains from derivatives and net income attributable to the
historical results of vessels acquired by the Company from Teekay Corporation (Teekay),
referred to herein as the Dropdown Predecessor, for the period when these vessels were owned
and operated by Teekay. |
|
| (2) | Please refer to Appendix A to this release for the calculation of the cash dividend amount. |
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Estimated First Quarter 2010 Dividend
The table below presents the estimated cash dividend per share for the quarter ending March 31,
2010 at various average time-charter equivalent (TCE) rates earned by the Company’s spot tanker
fleet and reflects the contribution from its existing fixed-rate time-charter contracts and the
effect of scheduled vessel drydockings. These estimates are based on current assumptions and
actual dividends may differ materially from those included in the following table:
| Q1-2010 Estimated | Suezmax Spot Rate Assumption (TCE basis per day) | |||||||||||||||||||||||
| Dividend Per Share* | $15,000 | $20,000 | $25,000 | $30,000 | $35,000 | $40,000 | ||||||||||||||||||
| Aframax Spot Rate Assumption (TCE basis per day) | ||||||||||||||||||||||||
$5,000 |
$ | 0.14 | $ | 0.16 | $ | 0.18 | $ | 0.20 | $ | 0.23 | $ | 0.24 | ||||||||||||
$10,000 |
$ | 0.20 | $ | 0.21 | $ | 0.23 | $ | 0.25 | $ | 0.28 | $ | 0.30 | ||||||||||||
$15,000 |
$ | 0.25 | $ | 0.27 | $ | 0.29 | $ | 0.31 | $ | 0.34 | $ | 0.35 | ||||||||||||
$20,000 |
$ | 0.31 | $ | 0.32 | $ | 0.34 | $ | 0.36 | $ | 0.38 | $ | 0.41 | ||||||||||||
$25,000 |
$ | 0.36 | $ | 0.38 | $ | 0.40 | $ | 0.41 | $ | 0.44 | $ | 0.46 | ||||||||||||
$30,000 |
$ | 0.42 | $ | 0.43 | $ | 0.44 | $ | 0.46 | $ | 0.49 | $ | 0.52 | ||||||||||||
$35,000 |
$ | 0.47 | $ | 0.48 | $ | 0.50 | $ | 0.52 | $ | 0.55 | $ | 0.57 | ||||||||||||
| * | Estimated dividend per share is based on Cash Available for Distribution, less $0.9 million
for principal payments related to one of the Company’s debt facilities, a $1.25 million of
reserve for estimated drydocking costs and a $0.3 million reserve for other vessel upgrades.
The quarterly reserve for drydocking and vessel upgrades is based on the expected average
quarterly cost for 2010 and 2011. |
Tanker Market
During the latter part of the fourth quarter, spot tanker rates recovered from the multi-year lows
of the previous quarter as a result of increased global oil demand, rising supply from both OPEC
and non-OPEC sources, seasonal factors such as weather-related vessel delays and an increase in the
use of conventional tankers for floating storage volumes, which tightened active fleet supply.
Spot tanker rates remained strong during the first few weeks of 2010 largely due to severe winter
weather conditions in the Northern Hemisphere which led to increased oil demand and caused
weather-related delays. Subsequently, spot tanker rates have softened in late January and February
due to easing seasonal factors and an increase in available fleet capacity as a result of a
reduction in global floating storage volumes.
In January 2010, the International Monetary Fund (IMF) raised its global GDP growth forecast for
2010 to 3.9 percent from 3.1 percent. The upward adjustment is a result of indications of a
stronger and faster recovery of the global economy than was previously anticipated. The
International Energy Agency (IEA) has forecasted that global oil demand in 2010 will average 86.5
million barrels per day (mb/d) which represents a 1.6 mb/d (or 1.8 percent) increase from 2009 when
global oil demand contracted by 1.5 percent compared to the prior year.
In 2009, the world tanker fleet grew by 7.3 percent as approximately 48 million deadweight tonnes
(mdwt) of new capacity joined the worldwide fleet and approximately 19 mdwt was removed through
scrapping or conversion for other uses. The tanker newbuilding delivery profile for 2010 is similar
to 2009. However, there is potential for an increase in scrapping due to the International
Maritime Organization (IMO) targeted phase-out of single hull tankers which could have a dampening
effect on tanker supply and lead to lower fleet growth in 2010 compared to the prior year.
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Financial Summary
The Company reported adjusted net income(1) of $4.5 million, or $0.14 per share, for the
quarter ended December 31, 2009, compared to adjusted net income of $1.8 million, or $0.05 per
share, for the quarter ended September 30, 2009. Adjusted net income for the three months ended
December 31, 2009 excludes an unrealized gain relating to changes in the fair value of an interest
rate swap of $3.4 million, or $0.11 per share. Adjusted net income for the three months ended
September 30, 2009 excludes an unrealized loss of $3.3 million, or $0.10 per share, relating to
changes in the fair value of the interest rate swap. These adjustments are detailed in notes (3)
and (4) to the Consolidated Statements of Income and Loss included in this release. Including
these items, the Company reported net income, on a GAAP basis, of $7.9 million, or $0.25 per share,
for the quarter ended December 31, 2009, compared to net loss, on a GAAP basis, of $1.5 million, or
$0.05 per share, for the quarter ended September 30, 2009. Net voyage revenues(2) for
the fourth quarter of 2009 increased to $25.2 million from $20.6 million in the prior quarter.
Adjusted net income(1) for the year ended December 31, 2009 was $27.7 million, or $0.97
per share, compared to adjusted net income of $64.9 million, or $2.60 per share, for the prior
year. Adjusted net income for the year ended December 31, 2009 excludes an unrealized gain relating
to changes in the fair value of an interest rate swap of $9.0 million, or $0.32 per share. Adjusted
net income for the year ended December 31, 2008 excludes an unrealized loss of $14.2 million, or
$0.57 per share, relating to changes in the fair value of an interest rate swap. These adjustments
are detailed in notes (3) and (4) to the Consolidated Statements of Income and Loss included in
this release. Including these items, the Company reported net income, on a GAAP basis, of $38.9
million, or $1.28 per share, for the year ended December 31, 2009, compared to net income, on a
GAAP basis, of $58.1 million, or $2.03 per share, for the year ended December 31, 2008. Net voyage
revenues(2) for the year ended December 31, 2009 decreased to $110.2 million from $161.0
million in the prior year.
Operating Results
The following table highlights the operating performance of the Company’s time-charter and spot
vessels measured in net voyage revenue per revenue day, or TCE rates, before pool management fees,
commissions and offhire bunker expenses:
| Three Months Ended | ||||||||||||
| December 31, 2009 | September 30, 2009 | December 31, 2008 | ||||||||||
Time-Charter Fleet |
||||||||||||
Aframax revenue days |
483 | 444 | 472 | |||||||||
Aframax TCE per revenue day |
$ | 29,772 | $ | 30,968 | $ | 31,766 | ||||||
Suezmax revenue days |
95 | 92 | 91 | |||||||||
Suezmax TCE per revenue day |
$ | 30,984 | $ | 31,182 | $ | 31,516 | ||||||
Spot Fleet |
||||||||||||
Aframax revenue days |
334 | 258 | 344 | |||||||||
Aframax TCE per revenue day |
$ | 15,283 | $ | 11,334 | $ | 33,971 | ||||||
Suezmax revenue days |
179 | 183 | 165 | |||||||||
Suezmax TCE per revenue day |
$ | 20,939 | $ | 15,631 | $ | 47,603 | * | |||||
Total Fleet |
||||||||||||
Aframax revenue days |
817 | 702 | 816 | |||||||||
Aframax TCE per revenue day |
$ | 23,846 | $ | 23,751 | $ | 32,695 | ||||||
Suezmax revenue days |
274 | 275 | 256 | |||||||||
Suezmax TCE per revenue day |
$ | 24,417 | $ | 20,834 | $ | 41,876 | * | |||||
| * | Suezmax spot TCE rates exclude the results of the Ashkini Spirit prior to the acquisition of
this vessel by the Company on June 24, 2009. |
|
| (1) | Adjusted net income is a non-GAAP financial measure. Please refer to Note (4) to the
Consolidated Statements of Income and Loss included in this release for a reconciliation of
this non-GAAP measure to the most directly comparable financial measure under United States
generally accepted accounting principles (GAAP) and information about specific items affecting
net income which are typically excluded by securities analysts in their published estimates of
the Company’s financial results. |
|
| (2) | Net voyage revenues represents voyage revenues less voyage expenses. Net voyage revenues is
a non-GAAP financial measure used by certain investors to measure the financial performance of
shipping companies. Please see the Company’s website at www.teekaytankers.com for a
reconciliation of this non-GAAP financial measure as used in this release to the most directly
comparable GAAP financial measure. |
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Teekay Tankers’ Fleet
The following table summarizes the Company’s fleet as of February 28, 2010:
| Number of Owned | ||||||||||||
| Aframax Fleet | Suezmax Fleet | Vessels | ||||||||||
Time-Charter Vessels |
5 | 2 | 7 | |||||||||
Spot Vessels |
4 | 1 | 5 | |||||||||
Total |
9 | 3 | 12 | |||||||||
Currently, approximately 58 percent and 55 percent of the aggregate vessel operating days for the
Company’s fleet for the first quarter of 2010 and fiscal 2010, respectively, are under fixed-rate
charters. In January 2010, the Company commenced a new fixed-rate (plus profit share) time-charter
contract for one of its Suezmax tankers for an initial period of 13 months. In February 2010, the
Company extended the fixed-rate time-charter contract for one of its Aframax tankers for an
additional 12 months.
Liquidity
As of December 31, 2009, the Company had total liquidity of $134.1 million (which consisted of
$10.4 million of cash and $123.7 million in an undrawn revolving credit facility), compared to
$137.1 million as at September 30, 2009.
About Teekay Tankers
Teekay Tankers Ltd. was formed in December 2007 by Teekay Corporation (NYSE: TK) as part of its
strategy to expand its conventional oil tanker business. Teekay Tankers currently owns a fleet of
nine double-hull Aframax tankers and three double-hull Suezmax tankers, which an affiliate of
Teekay Corporation manages through a mix of short- or medium-term fixed-rate, time-charter
contracts and spot tanker market trading. Teekay Tankers intends to distribute on a quarterly
basis all of its Cash Available for Distribution, subject to any reserves established by its board
of directors.
Teekay Tankers’ common stock trades on the New York Stock Exchange under the symbol “TNK”.
For Investor Relations enquiries contact:
Kent Alekson
Tel: +1 (604) 844-6654
Kent Alekson
Tel: +1 (604) 844-6654
For Media enquiries contact:
Alana Duffy
Tel: +1 (604) 844-6631
Alana Duffy
Tel: +1 (604) 844-6631
Visit our new Web site at: www.teekaytankers.com
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TEEKAY TANKERS LTD.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME AND LOSS(1)
(in thousands of U.S. dollars, except share data)
SUMMARY CONSOLIDATED STATEMENTS OF INCOME AND LOSS(1)
(in thousands of U.S. dollars, except share data)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2009 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||
VOYAGE REVENUES |
25,951 | 21,899 | 37,207 | 113,303 | 163,327 | |||||||||||||||
OPERATING EXPENSES |
||||||||||||||||||||
Voyage expenses |
724 | 1,288 | 854 | 3,106 | 2,359 | |||||||||||||||
Vessel operating expenses |
9,244 | 7,677 | 9,829 | 33,221 | 33,896 | |||||||||||||||
Depreciation and amortization |
7,493 | 6,906 | 7,017 | 28,660 | 27,655 | |||||||||||||||
General and administrative |
1,455 | 1,814 | 929 | 6,694 | 8,734 | |||||||||||||||
| 18,916 | 17,685 | 18,629 | 71,681 | 72,644 | ||||||||||||||||
Income from vessel operations |
7,035 | 4,214 | 18,578 | 41,622 | 90,683 | |||||||||||||||
OTHER ITEMS |
||||||||||||||||||||
Interest expense |
(1,155 | ) | (1,155 | ) | (4,198 | ) | (7,012 | ) | (16,908 | ) | ||||||||||
Interest income |
10 | 12 | 117 | 70 | 475 | |||||||||||||||
Realized and unrealized gain (loss) on
interest rate swap (2) |
2,031 | (4,564 | ) | (14,101 | ) | 4,310 | (16,232 | ) | ||||||||||||
Other (expense) income — net |
(5 | ) | (24 | ) | 65 | (56 | ) | 49 | ||||||||||||
| 881 | (5,731 | ) | (18,117 | ) | (2,688 | ) | (32,616 | ) | ||||||||||||
Net income (loss) |
7,916 | (1,517 | ) | 461 | 38,934 | 58,067 | ||||||||||||||
Earnings (loss) per share (3) |
||||||||||||||||||||
- Basic and diluted |
$ | 0.25 | ($0.05 | ) | $ | 0.03 | $ | 1.28 | $ | 2.03 | ||||||||||
Weighted-average number of Class A
common shares outstanding |
||||||||||||||||||||
- Basic and diluted |
19,500,000 | 19,500,000 | 12,500,000 | 16,143,836 | 12,500,000 | |||||||||||||||
Weighted-average number of Class B
common shares outstanding |
||||||||||||||||||||
- Basic and diluted |
12,500,000 | 12,500,000 | 12,500,000 | 12,500,000 | 12,500,000 | |||||||||||||||
Weighted-average number of total common
shares outstanding |
||||||||||||||||||||
- Basic and diluted |
32,000,000 | 32,000,000 | 25,000,000 | 28,643,836 | 25,000,000 | |||||||||||||||
| (1) | Results for three Suezmax tankers, the Ganges Spirit, the Narmada Spirit, and the Ashkini
Spirit for the period prior to their acquisition by the Company when they were owned and
operating under Teekay Corporation, are referred to as the Dropdown Predecessor. In
accordance with GAAP, the Company’s financial statements are retroactively adjusted to include
the historical results of the acquired vessels from the date the vessels were originally under
the control of Teekay Corporation. Dropdown Predecessor amounts included in net income above
are summarized for the respective periods in note (4) below. |
|
| (2) | Includes realized losses of $1.3 million, $1.3 million, and $0.4 million, for the three
months ended December 31, 2009, September 30, 2009, and December 31, 2008, respectively, and
$4.7 million and $2.1 million for the twelve months ended December 31, 2009 and 2008,
respectively. |
|
| (3) | Earnings (loss) per share is determined by dividing (a) net (loss) income of the Company
after deducting the amount of net income attributable to the Dropdown Predecessor by (b) the
weighted-average number of shares outstanding during the applicable period. |
|
| (4) | The following table provides a reconciliation of adjusted net income (loss), a non-GAAP
measure, to reported GAAP-based net income (loss) for the respective periods, adjusting for
specific items affecting net income (loss) which are typically excluded by securities analysts
in their published estimates of the Company’s financial results: |
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2009 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||
Net income (loss) — GAAP basis |
7,916 | (1,517 | ) | 461 | 38,934 | 58,067 | ||||||||||||||
Less: |
||||||||||||||||||||
Net income attributable to the Dropdown Predecessor |
— | — | (1,307 | ) | (2,164 | ) | (7,341 | ) | ||||||||||||
Unrealized gain on interest rate swap |
(3,376 | ) | — | — | (9,032 | ) | — | |||||||||||||
Add: |
||||||||||||||||||||
Unrealized loss on interest rate swap |
— | 3,299 | 13,811 | — | 14,167 | |||||||||||||||
Adjusted net income |
4,540 | 1,782 | 12,965 | 27,738 | 64,893 | |||||||||||||||
Adjusted earnings per share |
$ | 0.14 | $ | 0.05 | $ | 0.52 | $ | 0.97 | $ | 2.60 | ||||||||||
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TEEKAY TANKERS LTD.
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars)
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars)
| As at | As at | As at | ||||||||||
| December 31, | September 30, | December 31, | ||||||||||
| 2009 | 2009 | 2008(1) | ||||||||||
| (unaudited) | (unaudited) | (audited) | ||||||||||
ASSETS |
||||||||||||
Cash |
10,432 | 13,396 | 26,698 | |||||||||
Pool receivables from related parties, net |
10,427 | 2,496 | 9,113 | |||||||||
Other current assets |
2,415 | 3,068 | 4,645 | |||||||||
Due from affiliates |
223 | 766 | 25,341 | |||||||||
Vessels and equipment |
506,309 | 511,942 | 522,796 | |||||||||
Other non-current assets |
3,396 | 4,246 | 4,181 | |||||||||
Goodwill |
6,761 | 6,761 | 6,761 | |||||||||
Total assets |
539,963 | 542,675 | 599,535 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||
Accounts payable and accrued liabilities |
10,330 | 11,049 | 9,358 | |||||||||
Current portion of long-term debt |
3,600 | 3,600 | 3,600 | |||||||||
Current portion of derivative instruments |
3,865 | 3,870 | 2,716 | |||||||||
Other current liabilities |
3,849 | 3,126 | 5,389 | |||||||||
Due to affiliates |
— | 1,462 | 2,401 | |||||||||
Long-term debt |
301,628 | 302,528 | 417,539 | |||||||||
Other long-term liabilities |
10,420 | 13,861 | 20,879 | |||||||||
Stockholders’ equity |
206,271 | 203,179 | 137,653 | |||||||||
Total liabilities and stockholders’ equity |
539,963 | 542,675 | 599,535 | |||||||||
| (1) | In accordance with GAAP, the balance sheet as at December 31, 2008 includes the Dropdown
Predecessor for the Ashkini Spirit, which was acquired by the Company on June 24, 2009, to
reflect ownership of the vessel from the time it was acquired by Teekay Corporation on August
1, 2007. |
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TEEKAY TANKERS LTD.
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
| Twelve Months Ended | ||||||||
| December 31, | ||||||||
| 2009(1) | 2008(1) | |||||||
| (unaudited) | (unaudited) | |||||||
Cash and cash equivalents provided by (used for) |
||||||||
OPERATING ACTIVITIES |
||||||||
Net operating cash flow |
59,464 | 97,726 | ||||||
FINANCING ACTIVITIES |
||||||||
Proceeds of long-term debt |
— | 125,000 | ||||||
Repayments of long-term debt |
(3,600 | ) | (3,600 | ) | ||||
Prepayments of long-term debt |
(20,000 | ) | (15,000 | ) | ||||
Proceeds from long-term debt of Dropdown Predecessor |
— | 20,505 | ||||||
Prepayment of long-term debt of Dropdown Predecessor |
(13,303 | ) | (129,402 | ) | ||||
Prepayment of push-down debt of Dropdown Predecessor |
(57,000 | ) | — | |||||
Debt issuance costs |
— | (276 | ) | |||||
Advances from (to) affiliates |
7,867 | (7,210 | ) | |||||
Contributed capital |
1,411 | (20,320 | ) | |||||
Cash dividends paid |
(50,350 | ) | (69,625 | ) | ||||
Issuance of Class A common shares |
68,600 | — | ||||||
Share issuance costs |
(3,092 | ) | (1,130 | ) | ||||
Net financing cash flow |
(69,467 | ) | (101,058 | ) | ||||
INVESTING ACTIVITIES |
||||||||
Expenditures for vessels and equipment |
(6,263 | ) | (4,809 | ) | ||||
Net investing cash flow |
(6,263 | ) | (4,809 | ) | ||||
Decrease in cash and cash equivalents |
(16,266 | ) | (8,141 | ) | ||||
Cash and cash equivalents, beginning of the year |
26,698 | 34,839 | ||||||
Cash and cash equivalents, end of the year |
10,432 | 26,698 | ||||||
| (1) | In accordance with GAAP, the statement of cash flows include the cash flows relating to the
Dropdown Predecessor for the Ashkini Spirit for the period from August 1, 2007 to June 24, 2009,
when the vessel was under the common control of Teekay Corporation but prior to its acquisition
by the Company. |
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TEEKAY TANKERS LTD.
APPENDIX A — CASH DIVIDEND CALCULATION
(in thousands of U.S. dollars)
APPENDIX A — CASH DIVIDEND CALCULATION
(in thousands of U.S. dollars)
Cash Available for Distribution
The Company has adopted a dividend policy to pay a variable quarterly dividend equal to its Cash
Available for Distribution, subject to any reserves its board of directors may from time to time
determine are required for the prudent conduct of its business. Cash Available for Distribution
represents net income (loss) plus depreciation and amortization, unrealized losses from
derivatives, non-cash items and any write-offs or other non-recurring items, less net income
attributable to the Dropdown Predecessor, and unrealized gains from derivatives.
| Three Months Ended | ||||
| December 31, 2009 | ||||
| (unaudited) | ||||
Net income |
7,916 | |||
Add: |
||||
Depreciation and amortization |
7,493 | |||
Amortization of debt issuance costs and other |
81 | |||
Less: |
||||
Unrealized gain from interest rate swap |
(3,376 | ) | ||
Cash Available for Distribution |
12,114 | |||
Less: |
||||
Reserve for scheduled drydockings and other
capital expenditures |
(2,750 | ) | ||
Reserve for debt principal repayment |
(900 | ) | ||
Cash Available for Distribution After Reserves |
8,464 | |||
Total common shares outstanding as at December 31, 2009 |
32,000,000 | |||
Cash dividend per share (rounded) |
$ | 0.26 | ||
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8
FORWARD LOOKING STATEMENTS
This release contains forward-looking statements (as defined in Section 21E of the Securities
Exchange Act of 1934, as amended) which reflect management’s current views with respect to
certain future events and performance, including statements regarding: tanker market
fundamentals, including the balance of supply and demand in the tanker market, and spot tanker
charter rates; estimated dividends per share for the quarter ending March 31, 2010 based on
various spot tanker rates; the Company’s mix of spot market and time-charter trading in the
quarter ended March 31, 2010 and fiscal 2010; the Company’s ability to generate surplus cash
flow and pay dividends; the Company’s ability to generate sufficient fixed-rate revenue 2010 to
cover all its costs and reserves for the year and payout all spot revenue as dividends; and the
impact of vessel drydock activities on the Company’s future Cash Available for Distribution,
including the first quarter of 2010. The following factors are among those that could cause
actual results to differ materially from the forward-looking statements, which involve risks
and uncertainties, and that should be considered in evaluating any such statement: changes in
the production of or demand for oil; changes in trading patterns significantly affecting
overall vessel tonnage requirements; changes in applicable industry laws and regulations and
the timing of implementation of new laws and regulations; the potential for early termination
of short- or medium-term contracts and inability of the Company to renew or replace short- or
medium-term contracts; changes in interest rates and the capital markets; increases in the
Company’s expenses, including any drydocking expenses and associated offhire days; the ability
of Teekay Tankers’ board of directors to establish cash reserves for the prudent conduct of
Teekay Tankers’ business or otherwise; and other factors discussed in Teekay Tankers’ filings
from time to time with the United States Securities and Exchange Commission, including its
Report on Form 20-F for the fiscal year ended December 31, 2008. The Company expressly
disclaims any obligation or undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change in the Company’s expectations
with respect thereto or any change in events, conditions or circumstances on which any such
statement is based.
- end -
9
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.
| Dated: March 5, 2010 | TEEKAY TANKERS LTD. |
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| By: | /s/ Vincent Lok | |||
| Vincent Lok | ||||
| Chief Financial Officer (Principal Financial and Accounting Officer) |
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