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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2014
SEGMENT INFORMATION  
SEGMENT INFORMATION

 

3 - SEGMENT INFORMATION

 

The Company determines its reportable segments based on the information utilized by the chief operating decision maker to assess performance and make decisions about allocating the Company’s resources.  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 and Baltic Trading seek to deploy their vessels on time charters, spot market-related time charters or in vessel pools trading in the spot market. Segment results are evaluated based on net (loss) income.  Additionally, the debt covenants for the credit facilities are measured separately for GS&T and Baltic Trading.  The accounting policies applied to the reportable segments are the same as those used in the preparation of the Company’s consolidated financial statements.  As a result of the adoption of fresh-start reporting on the Effective Date, the cost basis for certain of Baltic Trading’s assets were revalued and are reflected in the Baltic Trading balances in the segment information reported below.

 

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 Successor Company for the period from July 9 to December 31, 2014 and for the Predecessor Company for the period from January 1 to July 9, 2014 and for the years ended December 31, 2013 and 2012.

 

 

 

Successor

 

Predecessor

 

 

 

Period from
July 9
to December 31,

 

Period from
January 1
to July 9,

 

For the Years Ended December 31,

 

 

 

2014

 

2014

 

2013

 

2012

 

Voyage revenue from external customers

 

 

 

 

 

 

 

 

 

GS&T

 

$
77,885 

 

$
94,171 

 

$
188,206 

 

$
195,855 

 

Baltic Trading

 
20,932 

 
24,588 

 
35,973 

 
27,304 

 

 

 

 

 

 

 

 

 

 

 

Total operating segments

 
98,817 

 
118,759 

 
224,179 

 
223,159 

 

Eliminating revenue

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

Total consolidated voyage revenue from external customers

 

$
98,817 

 

$
118,759 

 

$
224,179 

 

$
223,159 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table presents a reconciliation of total intersegment revenue, which eliminates upon consolidation, for the Company’s two operating segments for the Successor Company for the period from July 9 to December 31, 2014 and for the Predecessor Company for the period from January 1 to July 9, 2014 and for the years ended December 31, 2013 and 2012.  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.

 

 

 

Successor

 

Predecessor

 

 

 

Period from
July 9
to December 31,

 

Period from
January 1
to July 9,

 

For the Years Ended December 31,

 

 

 

2014

 

2014

 

2013

 

2012

 

Intersegment Revenue

 

 

 

 

 

 

 

 

 

GS&T

 

$
2,309

 

$
2,156

 

$
4,571

 

$
2,816

 

Baltic Trading

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

Total operating segments

 
2,309

 
2,156

 
4,571

 
2,816

 

Eliminating revenue

 
(2,309

)
(2,156

)
(4,571

)
(2,816

)

 

 

 

 

 

 

 

 

 

 

Total consolidated intersegment revenue

 

$

—

 

$

—

 

$

—

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table presents a reconciliation of total depreciation and amortization expense for the Company’s two operating segments to total consolidated depreciation and amortization expense for the Successor Company for the period from July 9 to December 31, 2014 and for the Predecessor Company for the period from January 1 to July 9, 2014 and for the years ended December 31, 2013 and 2012.  The eliminating depreciation and amortization expense noted in the following table consists of the elimination of intercompany transactions resulting from the depreciation expense associated with the 1% purchase fee due to GS&T from Baltic Trading pursuant to the Management Agreement.  The 1% purchase fee is capitalized as part of vessel assets by Baltic Trading and is depreciated over the remaining life of the vessel and therefore, the associated depreciation expense is eliminated upon consolidation.

 

 

 

Successor

 

Predecessor

 

 

 

Period from
July 9
to December 31,

 

Period from
January 1
to July 9,

 

For the Years Ended December 31,

 

 

 

2014

 

2014

 

2013

 

2012

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

GS&T

 

$
28,922

 

$
65,237

 

$
125,344

 

$
124,405

 

Baltic Trading

 
7,794

 
10,829

 
15,564

 
14,814

 

 

 

 

 

 

 

 

 

 

 

Total operating segments

 
36,716

 
76,066

 
140,908

 
139,219

 

Eliminating depreciation and amortization

 
(2

)
(114

)
(165

)
(156

)

 

 

 

 

 

 

 

 

 

 

Total consolidated depreciation and amortization

 

$
36,714

 

$
75,952

 

$
140,743

 

$
139,063

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table presents a reconciliation of total interest expense for the Company’s two operating segments to total consolidated interest expense for the Successor Company for the period from July 9 to December 31, 2014 and for the Predecessor Company for the period from January 1 to July 9, 2014 and for the years ended December 31, 2013 and 2012.  There is no eliminating interest expense as the interest incurred by each operating segment is related to each operating segment’s own debt facilities.

 

 

 

Successor

 

Predecessor

 

 

 

Period from
July 9
to December 31,

 

Period from
January 1
to July 9,

 

For the Years Ended December 31,

 

 

 

2014

 

2014

 

2013

 

2012

 

Interest expense

 

 

 

 

 

 

 

 

 

GS&T

 

$
4,791 

 

$
37,998 

 

$
83,761 

 

$
83,306 

 

Baltic Trading

 
2,829 

 
3,063 

 
4,455 

 
4,252 

 

 

 

 

 

 

 

 

 

 

 

Total operating segments

 
7,620 

 
41,061 

 
88,216 

 
87,558 

 

Eliminating interest expense

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

Total consolidated interest expense

 

$
7,620 

 

$
41,061 

 

$
88,216 

 

$
87,558 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table presents a reconciliation of total net loss for the Company’s two operating segments to total consolidated net loss for the Successor Company for the period from July 9 to December 31, 2014 and for the Predecessor Company for the period from January 1 to July 9, 2014 and for the years ended December 31, 2013 and 2012.  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.

 

 

 

Successor

 

Predecessor

 

 

 

Period from
July 9
to December 31,

 

Period from
January 1
to July 9,

 

For the Years Ended December 31,

 

 

 

2014

 

2014

(restated)

 

2013

 

2012

 

Net loss

 

 

 

 

 

 

 

 

 

GS&T

 

$
(177,921

)

$
(919,680

)

$
(144,054

)

$
(139,295

)

Baltic Trading

 
(35,032

)
(93,430

)
(11,392

)
(17,270

)

 

 

 

 

 

 

 

 

 

 

Total operating segments

 
(212,953

)
(1,013,110

)
(155,446

)
(156,565

)

Eliminating net loss

 
405

 
140

 
1,575

 
1,211

 

 

 

 

 

 

 

 

 

 

 

Total consolidated net loss

 

$
(213,358

)

$
(1,013,250

)

$
(157,021

)

$
(157,776

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

Successor

 

Predecessor

 

 

 

December 31,
2014

 

December 31,
2013

 

Total assets

 

 

 

 

 

GS&T

 

$
1,270,923

 

$
2,404,811

 

Baltic Trading

 
482,415

 
557,367

 

 

 

 

 

 

 

Total operating segments

 
1,753,338

 
2,962,178

 

Eliminating assets

 
(425

)
(4,924

)

 

 

 

 

 

 

Total consolidated assets

 

$
1,752,913

 

$
2,957,254

 

 

 

 

 

 

 

 

 

 

The following table presents a reconciliation of total expenditures for vessel purchases, including vessel deposits, for the Company’s two operating segments to total consolidated expenditures for vessel purchases, including vessel deposits, for the Successor Company for the period from July 9 to December 31, 2014 and for the Predecessor Company for the period from January 1 to July 9, 2014 and for the years ended December 31, 2013 and 2012.  The eliminating expenditures for vessels noted in the following table consists primarily of the elimination of the 1% purchase fees due to GS&T from Baltic Trading pursuant to the Management Agreement which were paid by Baltic Trading to GS&T during the period from July 9 to December 31, 2014 and during the year ended December 31, 2013.

 

 

 

Successor

 

Predecessor

 

 

 

Period from
July 9
to December 31,

 

Period from
January 1
to July 9,

 

For the Years Ended December 31,

 

 

 

2014

 

2014

 

2013

 

2012

 

Expenditures for vessels

 

 

 

 

 

 

 

 

 

GS&T

 

$
831

 

$
1,043

 

$
192

 

$
1,155

 

Baltic Trading

 
23,922

 
28,952

 
146,598

 

—

 

 

 

 

 

 

 

 

 

 

 

Total operating segments

 
24,753

 
29,995

 
146,790

 
1,155

 

Eliminating expenditures for vessels

 
(280

)

—

 
(1,440

)

—

 

 

 

 

 

 

 

 

 

 

 

Total consolidated expenditures for vessels

 

$
24,473

 

$
29,995

 

$
145,350

 

$
1,155