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SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2014
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 reportable 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 or in vessel pools.  Segment results are evaluated based on net (loss) income.  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 six months ended June 30, 2014 and 2013.

 

 

 

For the Three Months Ended
June 30,

 

For the Six Months Ended
June 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Voyage revenue from external customers

 

 

 

 

 

 

 

 

 

GS&T

 

$

40,842

 

$

38,562

 

$

90,931

 

$

72,252

 

Baltic Trading

 

10,703

 

6,379

 

23,794

 

12,365

 

Total operating segments

 

51,545

 

44,941

 

114,725

 

84,617

 

Eliminating revenue

 

—

 

—

 

—

 

—

 

Total consolidated voyage revenue from external customers

 

$

51,545

 

$

44,941

 

$

114,725

 

$

84,617

 

 

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 six months ended June 30, 2014 and 2013. 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
June 30,

 

For the Six Months Ended
June 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Intersegment revenue

 

 

 

 

 

 

 

 

 

GS&T

 

$

1,022

 

$

696

 

$

2,067

 

$

1,376

 

Baltic Trading

 

—

 

—

 

—

 

—

 

Total operating segments

 

1,022

 

696

 

2,067

 

1,376

 

Eliminating revenue

 

(1,022

)

(696

)

(2,067

)

(1,376

)

Total consolidated intersegment revenue

 

$

—

 

$

—

 

$

—

 

$

—

 

 

The following table presents a reconciliation of total net loss for the Company’s two operating segments to total consolidated net loss for the three and six months ended June 30, 2014 and 2013. 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 due to GS&T from Baltic Trading for its Class B shares of Baltic Trading.

 

 

 

For the Three Months Ended
June 30,

 

For the Six Months Ended
June 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Net loss

 

 

 

 

 

 

 

 

 

GS&T

 

$

(59,874

)

$

(44,297

)

$

(98,444

)

$

(91,145

)

Baltic Trading

 

(5,674

)

(4,625

)

(9,207

)

(9,708

)

Total operating segments

 

(65,548

)

(48,922

)

(107,651

)

(100,853

)

Eliminating net loss

 

9

 

18

 

145

 

37

 

Total consolidated net loss

 

$

(65,557

)

$

(48,940

)

$

(107,796

)

$

(100,890

)

 

The following table presents a reconciliation of total assets for the Company’s two operating segments to total consolidated assets as of June 30, 2014 and December 31, 2013. 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 June 30, 2014 and December 31, 2013.

 

 

 

June 30, 2014

 

December 31,
2013

 

Total assets

 

 

 

 

 

GS&T

 

$

2,286,604

 

$

2,404,811

 

Baltic Trading

 

546,861

 

557,367

 

Total operating segments

 

2,833,465

 

2,962,178

 

Eliminating assets

 

(4,779

)

(4,924

)

Total consolidated assets

 

$

2,828,686

 

$

2,957,254