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SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2012
SEGMENT INFORMATION  
SEGMENT INFORMATION

3 - SEGMENT INFORMATION

 

The Company determines its operating segments based on the information utilized by the chief operating decision maker to assess performance.  Based on this information, the Company has two operating segments, GS&T and Baltic Trading.  Both GS&T and Baltic Trading are engaged in the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels.  GS&T seeks to deploy its vessels on time charters, spot market-related time charters or in vessel pools trading in the spot market and Baltic Trading seeks to deploy its vessel charters in the spot market, which represents immediate chartering of a vessel, usually for single voyages, or employing vessels on spot market-related time charters.  Segment results are evaluated based on net income (loss).  The accounting policies applied to the reportable segments are the same as those used in the preparation of the Company’s condensed consolidated financial statements.

 

The following table presents a reconciliation of total voyage revenue from external (third party) customers for the Company’s two operating segments to total consolidated voyage revenue from external customers for the Company for the three and nine months ended September 30, 2012 and 2011.

 

 

 

For the Three Months Ended
September 30,

 

For the Nine Months Ended
September 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

Voyage revenue from external customers

 

 

 

 

 

 

 

 

 

GS&T

 

$

 47,312

 

$

 82,586

 

$

 154,552

 

$

 262,259

 

Baltic Trading

 

6,291

 

10,898

 

20,188

 

30,355

 

Total operating segments

 

53,603

 

93,484

 

174,740

 

292,614

 

Eliminating revenue

 

—

 

—

 

—

 

—

 

Total consolidated voyage revenue from external customers

 

$

 53,603

 

$

 93,484

 

$

 174,740

 

$

 292,614

 

 

The following table presents a reconciliation of total intersegment revenue, which eliminates upon consolidation, for the Company’s two operating segments for the three and nine months ended September 30, 2012 and 2011. The intersegment revenue noted in the following table represents revenue earned by GS&T pursuant to the management agreement entered into with Baltic Trading, which includes commercial service fees, technical service fees and sale and purchase fees, if any.

 

 

 

For the Three Months Ended
September 30,

 

For the Nine Months Ended
September 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

Intersegment revenue

 

 

 

 

 

 

 

 

 

GS&T

 

$

 703

 

$

 760

 

$

 2,109

 

$

 2,232

 

Baltic Trading

 

—

 

—

 

—

 

—

 

Total operating segments

 

703

 

760

 

2,109

 

2,232

 

Eliminating revenue

 

(703

)

(760

)

(2,109

)

(2,232

)

Total consolidated intersegment revenue

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

 

The following table presents a reconciliation of total net (loss) income for the Company’s two operating segments to total consolidated net (loss) income for the three and nine months ended September 30, 2012 and 2011. The eliminating net loss noted in the following table consists of the elimination of intercompany transactions between GS&T and Baltic Trading, as well as dividends received by GS&T from Baltic Trading for its Class B shares of Baltic Trading.

 

 

 

For the Three Months Ended
September 30,

 

For the Nine Months Ended
September 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

Net (loss) income

 

 

 

 

 

 

 

 

 

GS&T

 

$

 (36,969

)

$

 2,144

 

$

 (94,779

)

$

 27,422

 

Baltic Trading

 

(4,822

)

(194

)

(12,942

)

(2,241

)

Total operating segments

 

(41,791

)

1,950

 

(107,721

)

25,181

 

Eliminating net loss

 

(246

)

(533

)

(1,194

)

(1,763

)

Total consolidated net (loss) income

 

$

 (42,037

)

$

 1,417

 

$

 (108,915

)

$

 23,418

 

 

The following table presents a reconciliation of total assets for the Company’s two operating segments to total consolidated assets as of September 30, 2012 and December 31, 2011. The eliminating assets noted in the following table consist of the elimination of intercompany transactions resulting from the capitalization of fees paid to GS&T by Baltic Trading as vessel assets, including related accumulated depreciation, as well as the outstanding receivable balance due to GS&T from Baltic Trading as of September 30, 2012 and December 31, 2011.

 

 

 

September 30,

2012

 

December 31,
2011

 

Total assets

 

 

 

 

 

GS&T

 

$

 2,529,964

 

$

 2,737,988

 

Baltic Trading

 

368,127

 

384,955

 

Total operating segments

 

2,898,091

 

3,122,943

 

Eliminating assets

 

(3,518

)

(3,666

)

Total consolidated assets

 

$

 2,894,573

 

$

 3,119,277