Seaspan Corporation (NYSE:SSW) Q3 2019 Earnings Conference Call Transcript

Nov 07, 2019 • 08:30 am ET

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Seaspan Corporation (NYSE:SSW) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to the Seaspan Corporation conference call to discuss the financial results for the quarter ended September 30, 2019. I would like to remind everyone that this conference call is being recorded today, November 7, 2019, at 8:30 a.m. Eastern Time and will be available for replay starting at 11:30 a.m. Eastern Time.

Hosting the call today is Bing Chen, President and Chief Executive Officer; Peter Curtis, Executive Vice President and Chief Commercial and Technical Officer; and Ryan Courson, Chief Financial Officer. We will open the call for questions after the presentation from management at which point, David Sokol, Chairman of the Board; and Torsten Petersen, Executive Vice President of Ship Management will also be available for questions.

I will now turn the call over to Ryan Courson.

Executive
Ryan Courson

Good morning everyone, and thank you for joining us, to discuss Seaspan's third quarter earnings. This morning, we issued a press release announcing Seaspan's third quarter results for the period ended September 30 2019. The release as well as the accompanying presentation for this conference call are available on the Investor Relations section of our website. If we could all please turn to slide three. I would like to remind you that our discussion today contain forward-looking statements. Actual results may differ materially, from those stated or implied by forward-looking statements, due to risks and uncertainties associated with our business which are discussed in the Risk Factors section of our annual report filed with the SEC on Form 20-F for the year ended December 31 2018. Our risk factors may be updated from time to time in our filings with the SEC please note that we assume no obligation to update any forward-looking statements.

With that I will now pass the call over to Bing Chen to discuss highlights and recent developments.

Executive
Bing Chen

Thank you Ryan. Please turn to slide four. The operational and financial performance. I will first provide a brief operational financial highlights for the quarter and then Ryan, will elaborate further. Our industry-leading third quarter utilization of 99.6% was an improvement from last year's third quarter performance of 98.4%. This was the highest utilization in a single quarter since 2011 and very impressive given our fleet of 112 vessels. We continue to exceed the expectation of our customers through continued excellence in operational performance best-in-class safety standards and reliability. Revenue for the quarter was $282.7 million a drop over the same period in 2018 is primarily due to our charter modification agreement in Q1 2019 from which we received an upfront payment of $227 million. Our better-than-expected operating income of $116.1 million was driven by continued focus on cost efficiencies. Our industry-leading opex per ownership days for the third quarter was $5770 we have improved our operation cost per ownership days by over $200 from the 12 months ended September 30 2018 to the 12 months ended September 30 2019.

Our cash flow, from operations was $145.9 million for the quarter. The EPS per diluted shares was $0.11 compared to $0.36